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

2

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

10

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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.