DALLAS, TX
Presentation and Agenda
© 2024 Kite Realty Group | kiterealty.com
Dallas Schedule
Wednesday, May 15
6:30 PM - 9:00 PM | Cocktail Reception and Dinner - |
Truluck's at The Shops at Legacy | |
Thursday, May 16
9:30 AM - 10:30 AM | Tour Prestonwood Place |
10:30 AM - 12:00 PM | Tour Southlake Town Square |
12:00 PM - 2:00 PM | Management Lunch and |
Presentation | |
2:00 PM | Departures |
The Shops at Legacy East
Prestonwood Place
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Southlake Town Square
Four in '24 Overview
T H E M E S
O P E R AT E
L E A S E
D E V E LO P
Transforming the traditional
investor day approach into 4 | I N V E S T |
unique and interactive events
C I T I E S
Naples, FL | February 21-22
Dallas, TX | May 15-16
Washington, D.C. | September 25-26
Las Vegas, NV | November 18 (NAREIT)
3
KRG Vision, Purpose, & Four in '24 Takeaways
Key Takeaways
OUR VISION
To create communities, foster relationships, and enable positive human interaction
OUR PURPOSE
Serve as the most compelling, flexible, and effective link between retailers and consumers
Create meaningful experiences and long-term value for customers, colleagues, communities, and shareholders
REAL | LEASING | INVESTMENT |
ESTATE | PLATFORM | THESIS |
Gain a deeper | See KRG's leasing platform | KRG represents a |
understanding of KRG's | and the entire team's focus | compelling entry point for |
presence in the Dallas | on curating destinations that | investors with potential |
market and the quality of | become staples of a | future upside in growth |
our real estate | community |
4
LEASE
Leasing Team
SVP | SOUTH |
Gregg Poetz | Jason Kasal | Tom Peck | Gordon Atkinson |
SVP, Leasing | VP, Senior Leasing Director | Regional Director | Leasing Manager |
27 Years at KRG | 18 Years at KRG | 10 Years at KRG | 6 Years at KRG |
35 Years in Real Estate | 24 Years in Real Estate | 23 Years in Real Estate | 17 Years in Real Estate |
NORTHEAST
Greg Goldberg | Tricia Mangum |
VP, Leasing Director | Leasing Representative |
12 Years at KRG | 2 Years at KRG |
27 Years in Real Estate | 25 Years in Real Estate |
SOUTHEAST
MIDWEST / WEST
RENEWALS
Brian Hector | Ryan Joyce |
VP, Leasing Director | Regional Director |
9 Years at KRG | 15 Years at KRG |
19 Years in Real Estate | 22 Years in Real Estate |
Karly Kilroy | Blake Beaver | Katie Beason |
VP, Leasing Director | Regional Director | Leasing Manager |
10 Years at KRG | 15 Years at KRG | 1 Year at KRG |
19 Years in Real Estate | 19 Years in Real Estate | 7 Years in Real Estate |
Holiday Gates | JM Labellarte | |
Leasing Manager | Leasing Associate | |
9 Years at KRG | 1 Year at KRG | 6 |
12 Years in Real Estate | 6 Years in Real Estate |
Leasing VP Team Map by Region
KARLY KILROY
50 Properties, 8.0M of GLA,
28% of weighted ABR
GREG GOLDBERG
41 Properties, 6.7M of GLA,
28% of weighted ABR
BRIAN HECTOR
43 Properties, 5.7M of GLA,
17% of weighted ABR
JASON KASAL
46 Properties, 7.7M of GLA,
27% of weighted ABR
7
KRG Leasing Themes: Growth-Focused Leasing Results
LEASING THEMES DRIVING
STRENGTH IN OPEN-AIR RETAIL
- Limited new supply has driven higher occupancy in open-air retail
- Retailers have gained a re-appreciation for their brick-and-mortar footprint through adoption of curbside pick-up, buy online pick-upin-store (BOPIS), and fulfillment of online orders through their stores
- Tenants have rebalanced their capital spend such that brick and mortar is seeing significantly more investment as compared to pre-COVID levels
- Negligible new supply and rationalization of underperforming or oversized retail centers has allowed KRG to push higher embedded growth in our leases
AVERAGE ABR GROWTH - NEW LEASES AND NON-OPTION RENEWALS
Q1 2024 | 2023 | 2022 | |
Shops (< 10K Square Feet) | 3.4% | 3.0% | 2.7% |
Anchors (> 10K Square Feet) | 1.0% | 1.1% | 0.9% |
Total | 2.8% | 2.5% | 2.2% |
CONVERSION STATS - NEW LEASES AND NON-OPTION RENEWALS
Q1 2024 | 2023 | 2022 | |
Fixed Rent Bumps Greater Than or Equal to 3% (% of Lease Count) | 84% | 81% | 68% |
Fixed CAM (% of Lease Count) | 87% | 94% | 89% |
SMALL SHOP CONVERSION STATS - NEW LEASES AND NON-OPTION RENEWALS
FIXED RENT BUMPS (% OF LEASE COUNT) | Q1 2024 | 2023 | 2022 |
Greater Than or Equal to 3.0% | 91% | 87% | 74% |
Greater Than or Equal to 3.5% | 80% | 42% | 5% |
Greater Than or Equal to 4.0% | 73% | 35% | 3% |
8
KRG Leasing Themes: Accelerated Leasing Spreads Post-COVID
LEASING THEMES DRIVING
STRENGTH IN OPEN-AIR RETAIL
- Tenants are becoming increasingly agnostic as to product format which plays well into KRG's balanced and diverse portfolio mix
- We believe non-option renewals are the best indicator of where market rents are trending and have significantly accelerated in the KRG portfolio in the past two years
- KRG has demonstrated its ability to drive strong spreads
Note: Comparable cash leasing spreads from 2018 - 2021 include historical RPAI data.
COMPARABLE NEW CASH LEASING SPREADS
Property Type | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
Community / Neighborhood Centers | 33.9% | 22.8% | 15.9% | 5.4% | 30.2% | 6.4% |
Power Centers | 31.6% | 79.4% | 33.0% | (8.7%) | 25.7% | 49.4% |
Lifestyle / Mixed-Use Centers | 72.4% | 58.3% | 27.1% | 6.5% | 18.4% | 18.4% |
TOTAL | 41.3% | 37.8% | 20.5% | 3.7% | 25.4% | 15.0% |
COMPARABLE NON-OPTION RENEWAL CASH LEASING SPREADS
Property Type | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
Community / Neighborhood Centers | 12.6% | 10.4% | 4.2% | 2.2% | 2.1% | 1.3% |
Power Centers | 11.7% | 11.1% | 0.9% | 2.6% | 0.4% | 1.7% |
Lifestyle / Mixed-Use Centers | 15.4% | 12.6% | 2.8% | 3.8% | 6.1% | 6.8% |
TOTAL | 13.1% | 10.9% | 3.4% | 2.4% | 2.7% | 2.6% |
BLENDED NEW AND NON-OPTION | 22.7% | 18.1% | 8.9% | 2.8% | 9.9% | 5.7% |
RENEWALS TOTAL | ||||||
BLENDED TOTAL WITH OPTION | 14.3% | 12.6% | 8.3% | 4.3% | 8.9% | 6.4% |
RENEWALS | ||||||
9
The Life of a Lease
T IME L INE
PRE-LEASE | LEASE | POST-LEASE | ||||
Identify | LOI | Lease Approval | Lease | Construction of | Rent | |
Inventory and | Space Delivery | |||||
Negotiations | Process | Execution | Tenant Space | Commencement | ||
Market Space | ||||||
LEASE APPROVAL PROCESS
- Following negotiations with each tenant, the leasing team has two paths to submit deals for approval
- If a deal meets certain proprietary criteria, deals can bypass REC to expedite the approval process
- Deals that don't meet the bypass criteria are presented to REC to identify and discuss the sticking points with a particular tenant
REAL ESTATE COMMITTEE (REC)
- Leasing team utilizes an automated deal summary in Salesforce to outline each deal and present to REC
- KRG's REC analyzes leasing deals from a 360-degree point of view
- Each REC meeting involves various groups across the organization to support our leasing team through the leasing timeline
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Disclaimer
Kite Realty Group Trust published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 22:51:04 UTC.