Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Presentation (June 2018)
22 slides from Kite Realty Group Trust's investor presentation, Jun 4, 2018
Slide 1: Investor Update June 2018
ri KITE June 2018 INVESTOR UPDATE KRG 8885775600 _kiterealty.com NYSE
Slide 2: The Kite Way: Portfolio Facts and Company Snapshot
THE KITE WAY PORTFOLIO FACTS • High-quality portfolio with Number of Properties 115 June 2018 diverse tenant base Total GLA (SF) 22.5mm INVESTOR UPDATE Total Retail Operating 94.6% • Self-funded redevelopment, Portfolio Leased repurpose, and reposition Percent Leased Anchors 96.6% Percent Leased Sho
Slide 3: Building Value and Critical Mass Around Regional Footprints
BUILDING VALUE AND CRITICAL MASS AROUND REGIONAL FOOTPRINTS June 2018 of ABR derived from top 50 MSAs INVESTOR UPDATE % 76 and destination locations’ 93% of tenants are internet resistant / multi-channel of ABR derived from community centers / HIGH-QUALITY % neighborhood centers / lifestyle centers
Slide 4: Strategic Portfolio: Disposition Efforts Strengthen Portfolio
HIGH-QUALITY STRATEGIC PORTFOLIO Disposition Efforts Strengthen Portfolio DISPOSITIONS $155 MILLION IN DISPOSITIONS OVER THE LAST SIX QUARTERS IMPROVED ABR IMPROVED HOUSEHOLD INCOME IMPROVED POPULATION DENSITY $89,206 167,479 $16.57 $64,430 114,530 $11.78 DISPOSITIONS KRG Q1’18 OPERATING DISPOSITION
Slide 5: Geographic Portfolio Diversity
HIGH-QUALITY GEOGRAPHIC Focus on Portfolio Optimization PORTFOLIO DIVERSITY 76% OF ABR FROM TOP 50 MSAs AND DESTINATION LOCATIONS, INCLUDING ASSETS IN SUPERIORLY-POSITIONED MARKETS NEW YORK AVERAGE PROJECTED HOUSEHOLD INCOME: POPULATION GROWTH: $143,700 1.6% INDIANAPOLIS AVERAGE PROJECTED HOUSEHOLD
Slide 6: Top MSA: Dallas / Fort Worth / Houston
HIGH-QUALITY TOP MSA Dallas / Fort Worth / Houston PORTFOLIO CASE STUDY PROJECTED POPULATION GROWTH 2017-2022 • The Dallas MSA has been one of the 7.6% nation’s leaders in economic growth over the past 24 months. The region boasts 18 Fortune 500 companies and has averaged 1.1% employment growth annu
Slide 7: Top MSA: Indianapolis / Northern Suburbs
HIGH-QUALITY TOP MSA Indianapolis / Northern Suburbs PORTFOLIO CASE STUDY PROJECTED POPULATION GROWTH 2017-2022 • Hamilton County, the state’s fastest 6.0% growing and most affluent metropolitan area, is nationally recognized for its exceptional standard of living. The county has distinguished itself
Slide 8: Top MSA: Las Vegas
HIGH-QUALITY TOP MSA Las Vegas PORTFOLIO CASE STUDY PROJECTED POPULATION GROWTH 2017-2022 • The city of Las Vegas has experienced a 6.9% 73% increase in growth over the last 10 years, bringing its current population to approximately 633,000. • According to the US Census Bureau, Las Vegas is the nati
Slide 9: Top MSA: Naples
HIGH-QUALITY TOP MSA Naples PORTFOLIO CASE STUDY PROJECTED POPULATION GROWTH 2017-2022 • Naples recently witnessed a surge in 11.0% tourist activity. Collier County reported a 2.4% increase in tourism in 2017, with nearly 3 million people visiting the beach-side destination annually. Tourism contrib
Slide 10: Top MSA: Raleigh / Cary / Charlotte
HIGH-QUALITY TOP MSA Raleigh / Cary / Charlotte PORTFOLIO CASE STUDY PROJECTED POPULATION GROWTH 2017-2022 • Raleigh was ranked No. 4 on the Realtor. 13.9% com list of “Next Top Tech Cities” and No. 3 on USA Today’s list of “Best Cities for Job Seekers” in 2017. Both lists analyzed a number of criti
Slide 11: Strategic Portfolio: Well-Balanced Asset Mix
HIGH-QUALITY STRATEGIC Well-Balanced Portfolio PORTFOLIO ASSET MIX PROPERTY CLASSIFICATION BY ABRŸ COMMUNITY % NEIGHBORHOOD CENTER/ % POWER CENTER % 55 LIFESTYLE CENTER/ 26 19 CENTER PORTFOLIO OF ABR OTHER PORTFOLIO OF ABR PORTFOLIO OF ABR Average 2017 Average 2017 Average 2017 Household Income $90,
Slide 12: Diverse Tenant Base: Strong Mix of High-Quality Tenants
HIGH-QUALITY DIVERSE Strong Mix of High-Quality Tenants PORTFOLIO TENANT BASE Across Our Diversified Portfolio Top 10 Tenants by ABR’ Credit Rating„ # Stores % ABR RECENT LEASE ACTIVITY EXAMPLES 1 Publix Supermarkets, Inc. NR 14 2.5% 2 The TJX Companies, Inc. A+ 21 2.5% 3 Bed Bath & Beyond, Inc. BBB-
Slide 13: Diverse Tenant Base: Internet-Resistant Retail Base
HIGH-QUALITY DIVERSE Internet-Resistant Retail Base PORTFOLIO TENANT BASE INTERNET-RESISTANT 54.2% KITE’S TENANT BASE IS 93% INTERNET-RESISTANT / MULTI-CHANNEL Services, Entertainment 22.3% Restaurants 16.7% Grocer, Specialty Stores 15.2% MULTI-CHANNEL 39.0% Soft Goods 14.1% 54.2% TENANT TYPE 39.0%
Slide 14: Embedded NOI Growth Opportunities in Portfolio
EMBEDDED NOI GROWTH OPPORTUNITIES IN PORTFOLIO June 2018 INVESTOR UPDATE OPERATING • Attractive NOI Margin: 74.3%, trailing twelve months PROPERTIES • Efficient G&A / Revenues: 6.2%, trailing twelve months • Opportunity Areas: Operating expense savings, overage rent, OPERATIONS AND GROWTH and ancilla
Slide 15: Kite's 3-R Platform Generated Attractive Risk-Adjusted Returns
KITE’S 3-R PLATFORM HAS GENERATED ATTRACTIVE RISK-ADJUSTED RETURNS AND IMPROVED CASH FLOW AND ASSET QUALITY RESULTING IN INCREASED SHAREHOLDER VALUE June 2018 INVESTOR UPDATE REDEVELOP REPURPOSE REPOSITION Substantial renovations, Significant property Less substantial asset including teardowns, alter
Slide 16: 3-R Return on Investment Supported by New, High-Quality Tenants
3-R RETURN ON INVESTMENT SUPPORTED BY NEW, HIGH-QUALITY TENANTS June 2018 INVESTOR UPDATE Property Former Tenants/Spaces Replacement Tenants Bolton Plaza Vacant Shops OPERATIONS Vacant Shops and AND GROWTH Burnt Store Marketplace OPPORTUNITIES Old Format Publix New Format 3-R Castleton Crossing ENHA
Slide 17: Investment Grade Balance Sheet: Well-Staggered Debt Maturity Profile
INVESTMENT STRONG GRADE BALANCE BALANCE Well-Staggered Debt Maturity Profile SHEET SHEET SCHEDULE OF DEBT MATURITIES ($ IN MILLIONS)1 200.0 200.0 375.0 95.0 46.6 213.9 214.9 Only $48.7mm of debt 167.6 maturing through 2020 80.0 44.3 4.4 4.2 10.6 2018 2019 2020 2021 2022 2023 2024 2025 2026+ MORTGAGE
Slide 18: Disclaimer: Forward-Looking Statements
DISCLAIMER FORWARD-LOOKING STATEMENTS This supplemental information package, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Excha
Slide 19: Non-GAAP Financial Measures: Funds from Operations
NON-GAAP FINANCIAL MEASURES FUNDS FROM OPERATIONS Funds from Operations (FFO) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of operating performance. The Company calculates FFO, a non-GAAP financial measure, in accordance with the best p
Slide 20: Non-GAAP Financial Measures: NOI and Same Property NOI
NON-GAAP FINANCIAL MEASURES NET OPERATING INCOME AND SAME PROPERTY NET OPERATING INCOME The Company uses property net operating income (“NOI”), a non-GAAP financial measure, to evaluate the performance of our properties. The Company defines NOI as income from our real estate, including lease terminati
Slide 21: Appendix – Reconciliation of Same Property NOI to Net Income
APPENDIX – RECONCILIATION OF SAME PROPERTY NOI TO NET INCOME SAME PROPERTY NET OPERATING INCOME (NOI) ($ in thousands) Three Months Ended March 31, % 2018 2017 Change Number of properties for the quarter1 102 102 Leased percentage at period end 94.6% 95.1% 2 Economic Occupancy percentage 93.3% 94.0%
Slide 22: Kite Realty Contact Information
30 S MERIDIAN STREET SUITE 1100 INDIANAPOLIS, IN 46204 888 577 5600 kiterealty.com
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