KITE REALTY GROUP TRUST Founded / IPO | NYSE | Market Cap1 | Enterprise Value1 |
Operating Retail | Total Owned Retail | Retail Portfolio | Annualized Base Rent | Net Debt to |
Properties | GLA (SF) | Percent Leased | (ABR) per SF | Adjusted EBITDA |
ABR from Assets with a | ABR in Sun Belt Markets3 | ABR from Community and | Fitch Credit Rating |
Grocery Component2 | Neighborhood Centers | ||
Note: Unless otherwise indicated, the source of all Company data is publicly available information that has been or will be filed with the Securities and Exchange Commission for the period ending September 30, 2023.
- As of October 27, 2023.
- Assets with a grocery component include centers with a big box wine and spirits store.
- Sun Belt states include AL, AR, AZ, CA, CO, FL, GA, KY, LA, MS, NC, NM, NV, OK, SC, TN, TX, UT and VA.
- Operating margins and metrics well above open-air retail sector averages
- Management team has deep experience operating open-air real estate
▪
- Low leverage with manageable near-term maturities
- Received a 'Positive' credit rating outlook upgrade from S&P Global Ratings
- Over $1.1B of available liquidity and minimal near- term capital commitments
- Primarily concentrated in Sun Belt markets with select strategic gateway market presence
- Predominantly focused on grocery-anchored neighborhood and community centers along with vibrant mixed-use and lifestyle assets
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Q3 2023 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Q3 2023 |
Outperformance largely driven by lower than expected bad debt and overage rent
Minimum base rent growth and lower bad debt drove outsized SSNOI growth
Healthy leasing volume continues at extremely strong spreads
Shop leased percentage increased year-over-year by 90 bps. Anchor leased percentage decreased year-over-year by 130 bps, primarily driven by Bed Bath & Beyond closures
Spread represents $27M of NOI, of which ~35% will come online in Q4 2023
1. 2022 excludes the impact of prior period bad debt or the collection of accounts receivable previously written off due to the recovery from the COVID-19 pandemic.
▪
-
KRG's primary capital allocation priority through
2024 is leasing - Demand for space continues to be strong, as evidenced by ~14% blended cash spreads in 3Q and on a trailing twelve-month basis
- Through 3Q 2023, KRG has generated > 30% returns on capital for comparable new leases, which significantly exceeds return on capital expectations for other capital allocation alternatives
- As macroeconomic uncertainty persists, KRG believes a simple capital allocation strategy is a competitive advantage
Leasing
Developments
Acquisitions
- Same property NOI growth of 4.5%, which represents a 100-basis point increase
- Bad debt reserves of 45 basis points of total revenues for the full calendar year of 2023
- Bad debt reserves of 75 basis points of total revenues for the fourth quarter of 2023
Net income
Gain on sales of operating properties, net
Depreciation and amortization
NAREIT FFO
Same property NOI growth
Non-cash rent
ABR per SF
Net Debt to Adjusted EBITDA 3-Mile Population
3-Mile Average Household Income
% of ABR from Assets with a Grocery Component
(Since 2019)
(Since 2019)
(Since 2019)
12% | 13% | ||||
9% | |||||
7% | 7% | ||||
FRT | REG | SITC | KIM | BRX | KRG |
11% | |||||
8% | |||||
6% | 7% | 7% | |||
SITC | REG | FRT | KIM | BRX | KRG |
3% | ||
1% | 1% | 2% |
-3%
SITC FRT BRX KIM REG KRG
Note: Source of all peer data is from 2019 - 2Q 2023 supplemental disclosures, except KIM data is from 2019 - 3Q 2023 supplemental disclosures. 1. FFO per share CAGR includes reported FFO per share number for 2019, 2020, 2021, 2022 and the guidance midpoint for 2023.
Peer Average | KRG - 3Q'23 | Peer Average | KRG - 3Q'23 |
Peer Average | KRG - 3Q'23 | Peer Average | KRG - 3Q'23 |
Note: Peer group includes AKR, BRX, FRT, KIM, PECO, REG, ROIC and SITC. Source of all peer data is from 2Q 2023 supplemental disclosures, except KIM and ROIC data is from 3Q 2023 supplemental disclosures.
1, "Recovery Ratios" are computed by dividing tenant reimbursements by the sum of recoverable operating expense and real estate tax expense.
•
•
•
Note: Data pertains to multi-tenant retail, excluding single-tenant and net lease retail. | Source: BofA Global Research as of August 22, 2023 |
Source: CBRE Research |
•
•
•
CPI
Fixed Rent Bumps Greater Than or Equal to 3%
Fixed CAM
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Kite Realty Group Trust published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 20:27:42 UTC.
