Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Day (June 2011)
41 slides from Kite Realty Group Trust's investor day presentation, Jun 28, 2011
Slide 1: Analysts and Investors
KITE HEADQUARTERS Indianapolis, IN PRESENTED TO: 6.28.11 Analysts and Investors
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain statements that are not historical fact and may constitute forward -looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other fa
Slide 3: Table of Contents
TABLE OF CONTENTS Welcome: John Kite, Chairman & Chief Executive Officer Section 1 Technology Initiatives MRI: Marin Updike, Controller, Real Estate Lease Flow: Matthew Gabet, Director of Finance & Capital Markets Salesforce: Bradley Bisser, Vice President Asset Management Spaceman: Chris Mulloy, Vi
Slide 4: Technology Initiatives
KITE REALTY GROUP TECHNOLOGY INITIATIVES [eb 888.577.5600 %p kiterealty.com
Slide 5: Overview
OVERVIEW Simple goals of the technology initiatives: • Enable all Kite personnel to have access to critical information. • Increase productivity. • Accelerate the leasing process which will accelerate rent commencement. • Tenant retention. KITE REALTY GROUP 5
Slide 6: MRI - Overview
MRI - OVERVIEW MRI: An Enterprise Management System Presenter: Marin Updike • MRI Applications: – MRI Commercial, AP and GL: Property Management and Financial Reporting – Advanced Retail: Retail property sales and lease tracking – Lease Flow: Track leasing process from contact to contract – Work Flo
Slide 7: MRI - Lease Flow
MRI - LEASE FLOW Lease Flow Presenter: Matthew Gabet • Automated approval process for new and renewal leases. • Comprehensive data base allows for more sophisticated reporting. • Workflow between Leasing, Legal, Lease Administration and Accounting is defined. • Notes, documents and lease terms are r
Slide 8: Salesforce - Demonstration
SALESFORCE - DEMONSTRATION Salesforce: A one-stop Customer Relations Management (CRM) database. Presenter: Bradley Bisser • Information for the entire company used primarily to connect with tenants/customers in an organized fashion. • Creates a universal contact base for leasing agents, asset manage
Slide 9: Plan Data - Spaceman
PLAN DATA - SPACEMAN Spaceman Presenter: Chris Mulloy • Displays MRI database information on a site plan. • Provides a quick glance of lease information for any Kite shopping center. • Enables Kite Leasing Agents to quickly access information on any tenant space in the portfolio. • Kite employees ha
Slide 10: W.V. "Bud" Moll, Jr. Leasing
KITE REALTY GROUP W.V. “BUD” MOLL, JR. LEASING [eb 888.577.5600 —p kiterealty.com
Slide 11: Leasing - Overview
LEASING - OVERVIEW Leasing Results 2011* 2010 2009 Total GLA Leased 194,276 1,151,682 793,471 Total Retail 92.3% 92.2% 90.1% Percentage Leased Shops (<10,000 SF) 78.2% 78.1% 76.6% SSNOI 1.0% <1.3%> <2.7%> Leasing Spread 2011* 2010 2009 New Leases 9.1% 9.8% 4.4% Renewals <1.1%> <3.5%> <0.8%> Weighted
Slide 12: Leasing - Overview: New Retail Relationships
LEASING - OVERVIEW New Retail Relationships • National Retailers: Nordstrom Rack / The Container Store / Arhaus Furniture / Whole Foods / Fresh Market / Advanced Auto / Babies “R” Us and Toys “R” Us / Ulta / Urban Outfitters / Vitamin Shoppe / buy buy Baby / Apricot Lane / Bobby Chan / Chico’s / Dol
Slide 13: Leasing - Overview: Department Management
LEASING - OVERVIEW Leasing Department Management • Personnel changes and upgrades. • Leadership model: – Goals - Challenging but concise to ensure understanding and maximum production. – Coaching/Managing - Daily – Accountability - Weekly/Quarterly/Annually – Compensation Rewards KITE REALTY GROUP 1
Slide 14: Leasing - Overview: Weekly Real Estate Committee
LEASING - OVERVIEW Weekly KRG Real Estate Committee (REC) • Participants - Executive Management / Leasing / Asset Management / Legal / Construction / Development Agenda • Deal Presentations - Review of new deals and renewals. • Legal Review - Update and track lease progress of negotiations. • Weekly
Slide 15: Leasing - Overview: 2011 Leasing Production Goals
LEASING - OVERVIEW 2011 Leasing Production Goals • Operating Centers - Increase to 93.5% leased by year-end. – Boxes - 2 vacancies in operating portfolio (Lease in negotiation to occupy one of the spaces). – Shops - Increase to 82% leased by 12/31/11 and 85% by 12/31/12. • New Developments / Redevel
Slide 16: Leasing - Overview: 2011 Leasing Trends
LEASING - OVERVIEW 2011 Leasing Trends • Box Tenants - Active – Specialty Grocer - Fresh Market / Whole Foods / Trader Joe’s – Other - Dick’s Sporting Goods / DSW / T.J. Maxx, Marshall’s, Home Goods / JC Penney / Michael’s / PETCO / Petsmart / Toys "R" Us / Ulta / Ross Dress for Less • Box Tenants -
Slide 17: Bradley Bisser Asset Management
BRADLEY BISSER ASSET MANAGEMENT
Slide 18: Asset Management - Initiatives
ASSET MANAGEMENT - INITIATIVES Asset Management Strategy/Operating Property Coverage • Team Overview - Regional Coverage • Local, property level landlord reps in most of our markets. Asset Managers Responsible for Property Level NOI • Reduce expense structures through the analysis of property metric
Slide 19: Ancillary Income - Examples
ANCILLARY INCOME - EXAMPLES Temporary Leasing Daytona 500 Parking Temporary fireworks stand set International Speedway -up in out-lot areas Square PanAm Plaza, downtown Indianapolis Clothing Bins located in 28 Kick-off Concerts at Eddy is used for a variety of events Kite properties Street Commons K
Slide 20: Asset Management - Initiatives
ASSET MANAGEMENT - INITIATIVES Define long term strategies for each asset through regular asset reviews. • Drive Tenant Retention – Enhance direct communication with tenants. – Enhance cross communication pertaining to customers with leasing and other divisions within the company. – Asset Managers’
Slide 21: Thomas McGowan Construction
THOMAS MCGOWAN CONSTRUCTION
Slide 22: Construction - Overview
CONSTRUCTION - OVERVIEW Modify strategy to move from Construction Management (CM) to Owner’s Representation. • Completed “wind down” of the General Contracting (GC) department of Kite Realty Construction in Q4 2010. • Leverage an aggressive GC/CM market to secure favorable pricing. • Reduced constru
Slide 23: Construction - Overview: Goals and Objectives
CONSTRUCTION - OVERVIEW Goals and Objectives • Support leasing with the objective of moving customers into space in a timely, productive and cost efficient manner. – Focused on addressing and assisting the tenants needs. – Tenant Coordination is now overseeing “as-is” deals in order to streamline th
Slide 24: Thomas McGowan Development
KITE REALTY GROUP THOMAS MCGOWAN DEVELOPMENT [eb 888.577.5600 %p kiterealty.com
Slide 25: Cobblestone Plaza
COBBLESTONE PLAZA Pembroke Pines, Florida In-process Development • Foundations and walls are in place for Whole Foods. The building will be turned over to the tenant by the end of August with an opening expected in January, 2012. • Construction on the Whole Foods building has increased awareness of
Slide 26: South Elgin Commons
SOUTH ELGIN COMMONS South Elgin, Illinois In-process Development • The combination 58,000 SF Toys “R” Us/Babies “R” Us building pad was turned over to the tenant on April 1, 2011 with opening scheduled for September, 2011. • The additional building will be turned over to the tenant in August with a
Slide 27: Oleander Shopping Center
OLEANDER SHOPPING CENTER Wilmington, North Carolina In-process Redevelopment • Oleander Shopping Center, Wilmington, NC, was acquired by Kite on February 11, 2011 for $3,450,000. • A 30,000 square foot Whole Foods will replace the former Lowes Food Store. • Kite will commence construction of the new
Slide 28: Rivers Edge
RIVERS EDGE Indianapolis, Indiana In-process Redevelopment • The Rivers Edge redevelopment is proceeding on schedule. New anchor tenants include Nordstrom Rack, The Container Store, buy buy Baby and Arhaus Furniture. • Nordstrom Rack was turned over to the tenant on April 15, 2011, The Container Sto
Slide 29: Delray Marketplace
DELRAY MARKETPLACE Delray Beach, Florida Future Development • Offsite improvements for our portion of the Lyons Road expansion project are underway at a cost of approximately $800,000. • Including anchors Publix and Frank Theatres, we currently have 17 executed leases. The center is approximately 60
Slide 30: New Hill Place
NEW HILL PLACE Holly Springs, North Carolina Future Development • The following junior box leases are executed: – Dick’s Sporting Goods - 40,000 SF – Marshall’s - 25,000 SF • Leases pending: – 21,000 SF out for signature – 12,000 SF out for signature – 25,000 SF pending final approval from tenants r
Slide 31: Daniel Sink & Wade Achenbach Financing
DANIEL SINK & WADE ACHENBACH FINANCING
Slide 32: Debt and Capital Markets Update
DEBT AND CAPITAL MARKETS UPDATE Market Overview • Permanent Loan Market - CMBS/Insurance • Construction Loan Market Significant Debt Transactions • Closed on $200M Unsecured Credit Facility • Executed term sheet on $85.7M of secured financing for 10 years at 5.25% (1) 2011 Maturities • Only remainin
Slide 33: Debt and Capital Markets Update
DEBT AND CAPITAL MARKETS UPDATE Primary Debt Capital Market Initiatives • Extend duration of maturities. • Manage fixed to floating ratio to a goal of 80/20 (w/construction loan debt). • Capitalize on low long term interest rate environment. • Delevering in process through NOI growth. • Continue to
Slide 34: Incremental NOI Analysis on an Annualized Basis
INCREMENTAL NOI ANALYSIS ON AN ANNUALIZED BASIS KITE REALTY GROUP 34
Slide 35: Presenter Biographies
PRESENTER BIOGRAPHIES
Slide 36: About the Team - Biographies
ABOUT THE TEAM - BIOGRAPHIES John A. Kite Chairman and Chief Executive Officer John Kite is President and Chief Executive Officer of Kite Realty Group. Kite Realty Group is a public company listed on the New York Stock Exchange with approximately $1 billion of total market capitalization. Mr. Kite i
Slide 37: About the Team - Biographies
ABOUT THE TEAM - BIOGRAPHIES Thomas K. McGowan President and Chief Operating Officer Tom McGowan is primarily responsible for new project development, general operational and organizational functions of the development, construction and asset management groups. Before joining Kite Companies, Mr. McG
Slide 38: About the Team - Biographies
ABOUT THE TEAM - BIOGRAPHIES W.V. (BUD) Moll, Jr. Executive Vice President of Leasing Bud Moll leads the Kite Realty Group Leasing department. Responsible for leasing the KRG retail portfolio, Mr. Moll’s team handles all aspects of the leasing process for over sixty KRG assets. Prior to joining Kite
Slide 39: About the Team - Biographies
ABOUT THE TEAM - BIOGRAPHIES Wade Achenbach Vice President, Finance and Capital Markets Wade Achenbach is Vice President of Finance and Capital Markets and is responsible for all aspects of debt and equity capital markets, as well as overseeing the profitability of all capital spend throughout the c
Slide 40: About the Team - Biographies
ABOUT THE TEAM - BIOGRAPHIES Matthew G. Gabet Director of Finance and Capital Markets Marin C. Updike Controller, Real Estate KITE REALTY GROUP 40
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