Kite Realty Group Trust · NYSE:KRG

Kite Realty Group Trust — Q2 2022 Earnings Presentation

40 slides from Kite Realty Group Trust's earnings presentation, Aug 3, 2022

1. Slide 1: Kite Realty Group Investor Update Q2 2022

   RAMPART COMMONS MSA: Las Vegas, NV THE LANDING AT TRADITION MSA: Port St. Lucie, FL EDDY STREET COMMONS AT NOTRE DAME MSA: South Bend, IN SOUTHLAKE TOWN SQUARE KITE REALTY GROUP MSA: Dallas/Ft. Worth, TX INVESTOR UPDATE Q2 2022 © 2022 Kite Realty Group | kiterealty.com

2. Slide 2: A Solid Foundation: Why KRG?

   KITE REALTY GROUP A SOLID FOUNDATION WHY KRG? Number of Operating Retail Properties 181 • Top 5 open-air shopping center REIT primarily focused in Sun Belt markets with select strategic gateway presence Total Owned Retail GLA (SF) 29M - 67% of ABR in Sun Belt markets Operating Retail Portfolio Perce

3. Slide 3: Second Quarter Highlights

   KITE REALTY GROUP SECOND QUARTER HIGHLIGHTS NAREIT FFO / FFO, as adjusted $0.49 / $0.49 NAREIT FFO impacted by $1.0M from prior period collections Same Property NOI1 3.8% Increased leasing activity drove outsized SSNOI growth Total Leasing Volume ~1.2M SF Strong leasing volume continues Leased perce

4. Slide 4: 2022 Guidance

   KITE REALTY GROUP 2022 GUIDANCE PREVIOUS ORIGINAL CURRENT (Q1 2022) (Q4 2021) NAREIT FFO1 $1.79 – $1.85 $1.72 - $1.78 $1.67 – $1.73 FFO, as adjusted $1.80 - $1.86 $1.74 - $1.80 $1.69 - $1.75 % Accretion over Consensus 2022 FFO2 (pre-merger) 30% 26% 22% % Accretion over 2020 FFO 42% 37% 33% ASSUMPTIO

5. Slide 5: Strong Post-Merger Fundamentals

   KITE REALTY GROUP STRONG POST-MERGER FUNDAMENTALS • Despite significant improvements in KRG’s operating metrics and accretion from the merger, the market has not appreciated the impact, as reflected in KRG’s valuation relative to the peer group Q2 2021 Q2 2022 VARIANCE FFO, as adjusted Per Share $0.

6. Slide 6: Publicly Traded Shopping Center REITs by Enterprise Value

   KITE REALTY GROUP PUBLICLY TRADED SHOPPING CENTER REITS BY ENTERPRISE VALUE TOP 5 SHOPPING CENTER REITs $21.1 TOTAL ENTERPRISE VALUE ($, B) $15.3 $12.9 $12.3 $7.7 $6.2 $5.2 $4.3 $3.8 $3.6 $3.4 $2.6 $1.9 KIM REG FRT BRX KRG PECO SITC AKR ROIC UE AAT IVT RPT © 2022 Kite Realty Group | kiterealty.com N

7. Slide 7: FFO Multiple Disconnect Based on Key Metrics

   KITE REALTY GROUP FFO MULTIPLE DISCONNECT BASED ON KEY METRICS FFO MULTIPLE DISCONNECT1 17.6x 16.6x 14.4x 12.0x 11.2x #5 FRT REG KIM BRX KRG $29.98 ABR PSF 34% % OF VALUE IN SUPERZIPS2 $23.32 26% 25% $19.66 $19.22 16% $15.64 #2 11% #3 FRT REG KRG KIM BRX FRT KRG REG KIM BRX SUN BELT EXPOSURE3 71% (N

8. Slide 8: Organic Growth Not Priced In

   KITE REALTY GROUP ORGANIC GROWTH NOT PRICED IN POTENTIAL STOCK PRICE • We believe the market is currently mispricing KRG and CAP RATE ignoring significant signed-not-open pipeline, active POTENTIAL NOI GROWTH 5.00% 5.50% 6.00% 6.50% developments and potential NOI growth from vacant spaces 12.0% $41.

9. Slide 9: Components of Signed-Not-Open Pipeline

   KITE REALTY GROUP COMPONENTS OF SIGNED-NOT-OPEN PIPELINE • Outsized leased-to-occupied spread (270 bps) due to strong leasing demand following the fallout from COVID-19 is driving a strong signed-not-open NOI pipeline with contractual rent commencing in 2022 and 2023 – Grew the signed-not-open pipel

10. Slide 10: Retailers Embrace the Importance of Brick & Mortar

    KITE REALTY GROUP RETAILERS EMBRACE THE IMPORTANCE OF BRICK & MORTAR • Brick & mortar sales represented 85% of all retail sales in 2021 and have outpaced ecommerce growth in the past four quarters. Ecommerce should grow faster considering the smaller base, but brick & mortar demand remains strong.1

11. Slide 11: Further Strengthened Portfolio Has Significant Potential

    KRG DIFFERENCE FURTHER STRENGTHENED PORTFOLIO HAS SIGNIFICANT POTENTIAL Q2 2022 INVESTOR UPDATE © 2022 Kite Realty Group | kiterealty.com

12. Slide 12: Predominantly Sun Belt with Strategic Gateway Components

    KRG DIFFERENCE PREDOMINANTLY SUN BELT WITH STRATEGIC GATEWAY COMPONENTS ABR Concentration 67% Sun Belt Markets1 23% Strategic Gateway Markets (DC, Seattle and NYC) Seattle – 5% Highest Growth Markets2 35% (since onset of pandemic) New York – 8% Washington, D.C. / Baltimore – 10% Las Vegas – 5% Ralei

13. Slide 13: Diverse Portfolio of Durable Cash Flow and Growth Potential

    KRG DIFFERENCE DIVERSE PORTFOLIO OF DURABLE CASH FLOW AND GROWTH POTENTIAL COMMUNITY CENTERS NEIGHBORHOOD CENTERS MIXED-USE CENTERS Grocery Grocery Grocery ABR % 48% Component % 85% ABR % 11% Component % 87% ABR % 12% Component % 63% • Expanding offerings to retailers through a more POWER CENTERS LI

14. Slide 14: High-Quality Properties: Draper Peaks

    KRG DIFFERENCE HIGH-QUALITY PROPERTIES DRAPER PEAKS MSA: SALT LAKE CITY Total Owned GLA 227,805 ABR PSF $22.19 % of Portfolio ABR 0.9% Leased % 97.6% Comp. Cash Lease 37.7% Spread on Past 3 Deals 3 Mile Population 94K 3 Mile© 2022 Avg. HHI Kite Realty Group | kiterealty.com $132K 14

15. Slide 15: High-Quality Properties: Lincoln Park

    KRG DIFFERENCE HIGH-QUALITY PROPERTIES LINCOLN PARK MSA: DALLAS / FORT WORTH Total Owned GLA 148,806 ABR PSF $25.31 % of Portfolio ABR 0.6% Leased % 96.5% Comp. Cash Lease 6.4% Spread on Past 3 Deals 3 Mile Population 154K 3 Mile©Avg. HHI 2022 Kite Realty Group | kiterealty.com $169K 15

16. Slide 16: High-Quality Properties: Eastgate Crossing

    KRG DIFFERENCE HIGH-QUALITY PROPERTIES EASTGATE CROSSING MSA: RALEIGH Total Owned GLA 157,704 ABR PSF $30.94 % of Portfolio ABR 0.8% Leased % 98.1% Comp. Cash Lease 47.6% Spread on Past 3 Deals 3 Mile Population 63K 3 Mile Avg. HHI $124K © 2022 Kite Realty Group | kiterealty.com 16

17. Slide 17: High-Quality Properties: Delray Marketplace

    KRG DIFFERENCE HIGH-QUALITY PROPERTIES DELRAY MARKETPLACE MSA: MIAMI / FORT LAUDERDALE Total Owned GLA 260,398 ABR PSF $27.04 % of Portfolio ABR 1.2% Leased % 97.0% Comp. Cash Lease 65.0% Spread on Past 3 Deals 3 Mile Population 40K 3 Mile Avg. HHI $124K © 2022 Kite Realty Group | kiterealty.com 17

18. Slide 18: Anchor Inventory Update: Solid Returns & Better Tenants

    KRG DIFFERENCE ANCHOR INVENTORY UPDATE SOLID RETURNS & BETTER TENANTS • Strong risk-adjusted returns provide opportunity for NEW OFFERINGS outsized organic NOI growth • Additional value creation at properties due to new, stronger tenants STARTING OPPORTUNITY ACTUAL TO DATE AND (as of YE 2020) POTENT

19. Slide 19: Solid Leasing Activity

    KRG DIFFERENCE SOLID LEASING ACTIVITY TENANTS SIGNED IN PAST 6 MONTHS • KRG continues to see strong retailer demand for its well-positioned, open-air centers • Leasing volumes have increased significantly at strong spreads STRONG MOMENTUM CONTINUES 4Q’21 1Q’22 2Q’22 # of Leases Signed 132 182 206 TR

20. Slide 20: Strong Mix of Convenience and Experiential Diverse Tenant Base

    KRG DIFFERENCE STRONG MIX OF CONVENIENCE DIVERSE TENANT BASE AND EXPERIENTIAL % of ABR % OF WTD. TOP 15 TENANTS BY ABR STORE COUNT1 ESSENTIAL RETAIL 30% ABR2 1 The TJX Companies, Inc. 45 2.6% Grocery / Drug / Big Box Wine and Spirits 12% Office Supply / Electronics 6% 2 Best Buy Co., Inc. 16 2.0% Me

21. Slide 21: Value Creation: Active Developments

    KRG DIFFERENCE VALUE CREATION: ACTIVE DEVELOPMENTS • Total active developments are right-sized for the combined company and is expected to provide strong NOI growth prospects • Active development pipeline poised to deliver additional value creation in the future ($ in M; GLA in ‘000s) ESTIMATED PROJ

22. Slide 22: One Loudoun Downtown

    KRG DIFFERENCE ONE LOUDOUN DOWNTOWN OVERVIEW KEY METRICS MULTIFAMILY COMMERCIAL • Developed two additional pads (G & H) that include 378 multifamily units and 67k square feet of commercial space Total Project Costs1 $11.5M $10.2M • Pads G & H will each contain parking garages with over KRG Ownership

23. Slide 23: The Corner

    KRG DIFFERENCE THE CORNER OVERVIEW KEY METRICS TOTAL • 285 multifamily units and 24k square feet of ground floor retail on a land parcel through a 50/50 joint venture with a third party developer Total Project Cost1 $63.9M KRG Ownership % 50% • KRG’s contribution was primarily fulfilled by selling t

24. Slide 24: Development Has Many Forms

    KRG DIFFERENCE DEVELOPMENT HAS MANY FORMS • KRG is a bespoke developer • A successful development does not always entail going vertical and/or owning 100% of every project • In fact, monetizing portions of the property, contributing the land and partnering with third parties has proven an effective

25. Slide 25: Entitled Land – Development and/or Capital Source

    KRG DIFFERENCE ENTITLED LAND – DEVELOPMENT AND/OR CAPITAL SOURCE • KRG is taking a fresh look at each piece of entitled land to determine the optimal real estate use and capital allocation decision • KRG, while experienced developers, may or may not pursue all the development opportunities • An inde

26. Slide 26: Sources and Uses: Liquidity Through 2022

    KRG DIFFERENCE SOURCES AND USES LIQUIDITY THROUGH 2022 • Balance Sheet Strength 1,400 – $99M of cash on hand EST. CASH – $1.1B of revolver availability1 FFO LESS DIVIDENDS, – 2022 Estimated FFO (midpoint of NAREIT FFO $201 1,200 guidance), net of dividend = $201M – NDE = 5.3x with no outstanding pre

27. Slide 27: Well-Staggered Pro Forma Maturity Ladder

    KRG DIFFERENCE WELL-STAGGERED PRO FORMA MATURITY LADDER • Maturity ladder and debt metrics are pro forma for $300M term loan issued on 7/29/2022 Weighted Average Maturity 4.9 years Debt Type 93% Unsecured / 7% Secured Weighted Average Interest Rate 4.07% Rate Type 93% Fixed1 / 7% Floating2 $800 $700

28. Slide 28: 5-Year ESG Goals

    KRG DIFFERENCE 5-YEAR ESG GOALS • KRG recognizes the importance ESG initiatives play in our ability to generate long-term, sustainable returns, and setting goals signals our long-term ESG commitment - Establishing and publishing 5-year targets will align internal and external expectations with KRG’s

29. Slide 29: KRG: ESG 360°

    KRG DIFFERENCE KRG: ESG 360° While KRG works toward its long-term ESG goals, our team is consistently living and implementing our KRG and ESG values on a daily basis. Some recent highlights: KRG PROJECT WATER USAGE FARMERS REPUBLIC WELLNESS GREEN LEASE FRESH PRODUCE ARTISTS EV CHARGING GREEN REDUCTI

30. Slide 30: Thriving Open-Air Real Estate

    OPEN-AIR RETAIL THRIVING OPEN-AIR REAL ESTATE Q2 2022 INVESTOR UPDATE © 2022 Kite Realty Group | kiterealty.com

31. Slide 31: Open-Air Centers: Convenient and Less Costly

    OPEN-AIR RETAIL OPEN-AIR CENTERS: CONVENIENT CONFIDENTIAL RETAILER CASE STUDY AND LESS COSTLY CLEAR BENEFITS • Open-air assets are thriving due to their convenient and affordable • 14 relocations to open-air centers nature for retailers and consumers • All 14 had lower costs • Conveniently located a

32. Slide 32: Convenient Shopping Destinations and Last-Mile Fulfillment

    OPEN-AIR RETAIL CONVENIENT SHOPPING DESTINATIONS AND LAST-MILE FULFILLMENT SHOP IN STORE Shop and purchase in the physical store IN-STORE SCHEDULED PICKUP DELIVERY Order online Order online and pick up in and select a OPEN-AIR delivery time store CENTER slot TRANSACTIONS REDUCE FRICTION POINTS CURBS

33. Slide 33: Open-Air Centers: Commerce Hubs – Pine Ridge Crossing

    OPEN-AIR RETAIL OPEN-AIR CENTERS: COMMERCE HUBS PINE RIDGE CROSSING COMMUNITY CENTER | MSA: NAPLES, FL 44% of ABR is deemed essential 41% of ABR from service-oriented tenants that generate daily trips post-COVID 15% of ABR from primarily full-service restaurants creates additional traffic Essential

34. Slide 34: Disclaimer

    DISCLAIMER • Forward-Looking Statements • This Investor Update, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securi

35. Slide 35: Non-GAAP Financial Measures

    NON-GAAP FINANCIAL MEASURES NET OPERATING INCOME AND SAME PROPERTY NET OPERATING INCOME The Company uses property net operating income (“NOI”), a non-GAAP financial measure, to evaluate the performance of our properties. The Company defines NOI as income from our real estate, including lease termina

36. Slide 36: Non-GAAP Financial Measures: EBITDA

    NON-GAAP FINANCIAL MEASURES EBITDA The Company defines EBITDA, a non-GAAP financial measure, as net income before interest expense, income tax expense of the taxable REIT subsidiary, and depreciation and amortization. For informational purposes, the Company also provides Adjusted EBITDA, which it de

37. Slide 37: Appendix: Reconciliation of Same Property NOI to Net Income

    APPENDIX: RECONCILIATION OF SAME PROPERTY NOI TO NET INCOME © 2022 Kite Realty Group | kiterealty.com 37

38. Slide 38: Appendix: Funds From Operations

    APPENDIX: FUNDS FROM OPERATIONS © 2022 Kite Realty Group | kiterealty.com 38

39. Slide 39: Appendix: Reconciliation of EBITDA to Net Income

    APPENDIX: RECONCILIATION OF EBITDA TO NET INCOME © 2022 Kite Realty Group | kiterealty.com 39

40. Slide 40: Appendix: Reconciliation of Net Income to FFO, As Adjusted, Guidance

    APPENDIX: RECONCILIATION OF NET INCOME TO FFO, AS ADJUSTED, GUIDANCE © 2022 Kite Realty Group | kiterealty.com 40

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