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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2024

KITE REALTY GROUP TRUST

KITE REALTY GROUP, L.P.

(Exact name of registrant as specified in its charter)


Maryland	001-32268	11-3715772
Delaware	333-202666-01	20-1453863
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

30 S. Meridian Street, Suite 1100, Indianapolis, IN 46204

(Address of principal executive offices) (Zip Code)

(317) 577-5600

(Registrant’s telephone number including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Shares, $0.01 par value per share

KRG

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On July 30, 2024, Kite Realty Group Trust (the “Company”) announced its consolidated financial results for the quarter ended June 30, 2024. A copy of the Company’s press release is furnished as Exhibit 99.1 to this current report on Form 8-K. A copy of the Company’s Second Quarter 2024 Supplemental Disclosure is furnished as Exhibit 99.2 to this current report on Form 8-K. The information contained in Item 2.02 of this current report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits


Exhibit No.						Description

99.1						Kite Realty Group Trust Press Release dated July 30, 2024

99.2						Kite Realty Group Trust Second Quarter 2024 Supplemental Disclosure

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	KITE REALTY GROUP TRUST

Date: July 30, 2024	By:	/s/ HEATH R. FEAR

		Heath R. Fear
		Executive Vice President and
		Chief Financial Officer

	KITE REALTY GROUP, L.P.
	By: Kite Realty Group Trust, its sole general partner

	By:	/s/ HEATH R. FEAR

		Heath R. Fear
		Executive Vice President and
		Chief Financial Officer

EX-99.1 2 exhibit99_1xq22024.htm EX-99.1 EARNINGS RELEASE Document


						Exhibit 99.1

PRESS RELEASE

Contact Information: Kite Realty Group Trust

Tyler Henshaw

SVP, Capital Markets & Investor Relations

317.713.7780

thenshaw@kiterealty.com

Kite Realty Group Trust Reports Second Quarter 2024 Operating Results

Indianapolis, Indiana, July 30, 2024 – Kite Realty Group Trust (NYSE: KRG), a premier owner and operator of high-quality, open-air grocery-anchored centers and vibrant mixed-use assets, reported today its operating results for the second quarter ended June 30, 2024. For the quarters ended June 30, 2024 and 2023, net loss attributable to common shareholders was $48.6 million, or $0.22 per diluted share, compared to net income of $32.1 million, or $0.15 per diluted share, respectively. For the six months ended June 30, 2024 and 2023, net loss attributable to common shareholders was $34.5 million, or $0.16 per diluted share, compared to net income of $37.4 million, or $0.17 per diluted share, respectively. The net loss for the quarter and six months ended June 30, 2024 was driven by a $66.2 million impairment charge associated with an asset classified as held for sale as of June 30, 2024. Excluding the impairment charge, net income for the quarter and six months ended June 30, 2024 would have been $17.6 million, or $0.08 per diluted share, and $31.7 million, or $0.14 per diluted share, respectively.

Company raises 2024 NAREIT FFO and Same Property NOI guidance

Leased approximately 1.2 million square feet at 15.6% comparable blended cash leasing spreads

Received a credit rating upgrade to BBB from S&P Ratings

Improved Net Debt to Adjusted EBITDA to 4.8x, an all-time low for KRG

Board of Trustees raises quarterly dividend on common shares by 8.3% on a year-over-year basis

“The KRG team delivered another exceptional quarter with approximately 1.2 million square feet of total leasing volume, while generating 15.6% blended cash spreads,” said John A. Kite, Chairman and CEO. “The combination of our superior operating platform and premier open-air portfolio has enabled our team to enhance the quality of our merchandising mix and drive higher embedded rent bumps. S&P and Moody’s recent upgrades reflect the strength of our credit metrics and our commitment to maintaining a formidable balance sheet.”

Second Quarter 2024 Financial and Operational Results

▪Generated NAREIT FFO of the Operating Partnership of $117.5 million, or $0.53 per diluted share, for the second quarter and $230.3 million, or $1.03 per diluted share, year to date.

▪Same Property NOI increased by 1.8% for the second quarter and increased by 2.2% year to date.

▪Executed 160 new and renewal leases representing approximately 1.2 million square feet.

▪Blended cash leasing spreads of 15.6% on 136 comparable leases, including 34.8% on 40 comparable new leases, 14.3% on 60 comparable non-option renewals and 6.0% on 36 comparable option renewals.

▪Cash leasing spreads of 23.7% on a blended basis for comparable new and non-option renewal leases.

▪Operating retail portfolio ABR per square foot of $20.90 at June 30, 2024, a 3.5% increase year-over-year.

▪Retail portfolio leased percentage of 94.8% at June 30, 2024, an 80-basis point increase sequentially.

▪Portfolio leased-to-occupied spread at period end of 320 basis points, which represents $35.3 million of signed-not-open NOI.

Second Quarter 2024 Capital Allocation Activity

▪Sold Ashland & Roosevelt (Chicago, IL), a 104,176 square foot center, for $30.6 million.

Second Quarter 2024 Balance Sheet Overview

▪As of June 30, 2024, the Company’s net debt to Adjusted EBITDA was 4.8x.

▪Repaid the $149.6 million principal balance of the 4.58% senior unsecured notes that matured on June 30, 2024. Subsequent to quarter end, repaid the $120.0 million principal balance of the 2.68% unsecured term loan that matured on July 17, 2024, with a portion of the proceeds from the Company’s $350.0 million of senior unsecured notes issued in January 2024. The Company has no debt maturing for the remainder of 2024.

▪S&P Ratings upgraded the Company’s corporate credit rating to BBB from BBB- with a stable rating outlook.

Dividend

On July 29, 2024, the Company’s Board of Trustees declared a third quarter 2024 dividend of $0.26 per common share, which represents an 8.3% year-over-year increase. The third quarter dividend will be paid on or about October 16, 2024, to shareholders of record as of October 9, 2024.

2024 Earnings Guidance

The Company now expects to generate net income attributable to common shareholders of $0.00 to $0.04 per diluted share in 2024. The Company is updating its 2024 NAREIT FFO guidance range to $2.04 to $2.08 per diluted share from $2.02 to $2.08 per diluted share, based, in part, on the following assumptions:

▪2024 Same Property NOI range of 2.0% to 3.0%, which represents a 50-basis point increase at the midpoint.

▪Full-year bad debt assumption of 0.5% to 1.0% of total revenues, which represents a 5-basis point decrease at the midpoint.

The following table reconciles the Company’s 2024 net income guidance range to the Company’s 2024 NAREIT FFO guidance range:


	Low		High

Net income	$	0.00	$	0.04
Depreciation and amortization	1.74		1.74
Realized loss on sales of operating properties, net	0.01		0.01
Realized gain on sale of unconsolidated property, net	(0.01)		(0.01)
Impairment charges	0.30		0.30
NAREIT FFO	$	2.04	$	2.08

Earnings Conference Call

Kite Realty Group Trust will conduct a conference call to discuss its financial results on Wednesday, July 31, 2024, at 1:00 p.m. Eastern Time. A live webcast of the conference call will be available on KRG’s website at www.kiterealty.com or at the following link: KRG Second Quarter 2024 Webcast. The dial-in registration link is: KRG Second Quarter 2024 Teleconference Registration. In addition, a webcast replay link will be available on KRG’s website.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both

retailers and consumers. Publicly listed since 2004, KRG has over 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of June 30, 2024, the Company owned interests in 178 U.S. open-air shopping centers and mixed-use assets, comprising approximately 27.6 million square feet of gross leasable space. For more information, please visit kiterealty.com.

Connect with KRG: LinkedIn | Twitter | Instagram | Facebook

Safe Harbor

This release, 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 Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements.

Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to: economic, business, banking, real estate and other market conditions, particularly in connection with low or negative growth in the U.S. economy as well as economic uncertainty (including a potential economic slowdown or recession, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending); financing risks, including the availability of, and costs associated with, sources of liquidity; the Company’s ability to refinance, or extend the maturity dates of, the Company’s indebtedness; the level and volatility of interest rates; the financial stability of the Company’s tenants; the competitive environment in which the Company operates, including potential oversupplies of, or a reduction in demand for rental space; acquisition, disposition, development and joint venture risks; property ownership and management risks, including the relative illiquidity of real estate investments, and expenses, vacancies or the inability to rent space on favorable terms or at all; the Company’s ability to maintain the Company’s status as a real estate investment trust for U.S. federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; the attractiveness of our properties to tenants, the actual and perceived impact of e-commerce on the value of shopping center assets and changing demographics and customer traffic patterns; business continuity disruptions and a deterioration in our tenants’ ability to operate in affected areas or delays in the supply of products or services to us or our tenants from vendors that are needed to operate efficiently, causing costs to rise sharply and inventory to fall; risks related to our current geographical concentration of the Company’s properties in the states of Texas, Florida, and North Carolina and the metropolitan statistical areas of New York, Atlanta, Seattle, Chicago, and Washington, D.C.; civil unrest, acts of violence, terrorism or war, acts of God, climate change, epidemics, pandemics, natural disasters and severe weather conditions, including such events that may result in underinsured or uninsured losses or other increased costs and expenses; changes in laws and government regulations including governmental orders affecting the use of the Company’s properties or the ability of its tenants to operate, and the costs of complying with such changed laws and government regulations; possible short-term or long-term changes in consumer behavior due to COVID-19 and the fear of future pandemics; our ability to satisfy environmental, social or governance standards set by various constituencies; insurance costs and coverage, especially in Florida and Texas coastal areas; risks associated with cybersecurity attacks and the loss of confidential information and other business disruptions; other factors affecting the real estate industry generally; and other risks identified in reports the Company files with the Securities and Exchange Commission or in other documents that it publicly disseminates, including, in particular, the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in the Company’s quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

This Earnings Release also includes certain forward-looking non-GAAP information. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of our operating performance. Please see the following pages for the corresponding definitions and reconciliations of such non-GAAP financial measures.

Kite Realty Group Trust

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)


	June 30, 2024		December 31, 2023
Assets:
Investment properties, at cost	$	7,546,116	$	7,740,061
Less: accumulated depreciation	(1,447,549)		(1,381,770)
Net investment properties	6,098,567		6,358,291

Cash and cash equivalents	153,835		36,413
Tenant and other receivables, including accrued straight-line rent of $62,035 and $55,482, respectively	120,012		113,290
Restricted cash and escrow deposits	4,935		5,017
Deferred costs, net	263,884		304,171
Short-term deposits	120,000		—
Prepaid and other assets	114,159		117,834
Investments in unconsolidated subsidiaries	9,970		9,062
Assets associated with investment property held for sale	73,558		—
Total assets	$	6,958,920	$	6,944,078

Liabilities and Equity:
Liabilities:
Mortgage and other indebtedness, net	$	3,015,626	$	2,829,202
Accounts payable and accrued expenses	189,688		198,079
Deferred revenue and other liabilities	250,103		272,942
Liabilities associated with investment property held for sale	3,930		—
Total liabilities	3,459,347		3,300,223

Commitments and contingencies
Limited Partners’ interests in the Operating Partnership	76,093		73,287

Equity:
Common shares, $0.01 par value, 490,000,000 shares authorized, 219,654,953 and 219,448,429 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	2,197		2,194
Additional paid-in capital	4,886,532		4,886,592
Accumulated other comprehensive income	50,255		52,435
Accumulated deficit	(1,517,383)		(1,373,083)
Total shareholders’ equity	3,421,601		3,568,138
Noncontrolling interests	1,879		2,430
Total equity	3,423,480		3,570,568
Total liabilities and equity	$	6,958,920	$	6,944,078

Kite Realty Group Trust

Consolidated Statements of Operations

(dollars in thousands, except per share amounts)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenue:
Rental income	$	205,836	$	205,836	$	411,649	$	408,899
Other property-related revenue	3,146		1,883		4,457		3,799
Fee income	3,452		1,040		3,767		2,811
Total revenue	212,434		208,759		419,873		415,509

Expenses:
Property operating	28,564		27,232		56,645		54,546
Real estate taxes	26,493		26,697		53,027		53,880
General, administrative and other	12,966		14,499		25,750		27,883

Depreciation and amortization	99,291		109,462		199,670		217,533
Impairment charges	66,201		—		66,201		—
Total expenses	233,515		177,890		401,293		353,842

(Loss) gain on sales of operating properties, net	(1,230)		28,440		(1,466)		28,440

Operating (loss) income	(22,311)		59,309		17,114		90,107
Other (expense) income:
Interest expense	(30,981)		(27,205)		(61,345)		(52,630)
Income tax expense of taxable REIT subsidiaries	(132)		(45)		(290)		(16)

Equity in (loss) earnings of unconsolidated subsidiaries	(174)		118		(594)		(126)
Gain on sale of unconsolidated property, net	—		—		2,325		—
Other income, net	4,295		304		7,923		707
Net (loss) income	(49,303)		32,481		(34,867)		38,042
Net loss (income) attributable to noncontrolling interests	665		(423)		385		(593)
Net (loss) income attributable to common shareholders	$	(48,638)	$	32,058	$	(34,482)	$	37,449

Net (loss) income per common share – basic and diluted	$	(0.22)	$	0.15	$	(0.16)	$	0.17


Weighted average common shares outstanding – basic	219,622,059		219,354,275		219,561,586		219,294,255
Weighted average common shares outstanding – diluted	219,622,059		220,032,366		219,561,586		219,999,440

Kite Realty Group Trust

Funds From Operations (“FFO”)(1)(2)

(dollars in thousands, except per share amounts)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Net (loss) income	$	(49,303)	$	32,481	$	(34,867)	$	38,042
Less: net income attributable to noncontrolling interests in properties	(74)		(30)		(141)		(134)
Add/less: loss (gain) on sales of operating properties, net	1,230		(28,440)		1,466		(28,440)
Less: gain on sale of unconsolidated property, net	—		—		(2,325)		—
Add: impairment charges	66,201		—		66,201		—
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	99,433		109,736		199,993		218,045
FFO of the Operating Partnership(1)	117,487		113,747		230,327		227,513
Less: Limited Partners’ interests in FFO	(1,946)		(1,547)		(3,768)		(3,054)
FFO attributable to common shareholders(1)	$	115,541	$	112,200	$	226,559	$	224,459
FFO, as defined by NAREIT, per share of the Operating Partnership – basic	$	0.53	$	0.51	$	1.03	$	1.02
FFO, as defined by NAREIT, per share of the Operating Partnership – diluted	$	0.53	$	0.51	$	1.03	$	1.02











Weighted average common shares outstanding – basic	219,622,059		219,354,275		219,561,586		219,294,255
Weighted average common shares outstanding – diluted	220,013,860		220,032,366		219,957,009		219,999,440

Weighted average common shares and units outstanding – basic	223,329,063		222,388,487		223,219,523		222,287,815
Weighted average common shares and units outstanding – diluted	223,720,864		223,066,578		223,614,946		222,993,000

FFO, as defined by NAREIT, per diluted share/unit
Net (loss) income	$	(0.22)	$	0.15	$	(0.16)	$	0.17
Less: net income attributable to noncontrolling interests in properties	0.00		0.00		0.00		0.00
Add/less: loss (gain) on sales of operating properties, net	0.01		(0.13)		0.01		(0.13)
Less: gain on sale of unconsolidated property, net	0.00		0.00		(0.01)		0.00
Add: impairment charges	0.30		0.00		0.30		0.00
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	0.44		0.49		0.89		0.98
FFO, as defined by NAREIT, of the Operating Partnership per diluted share/unit(1)(2)	$	0.53	$	0.51	$	1.03	$	1.02

(1)“FFO of the Operating Partnership” measures 100% of the operating performance of the Operating Partnership’s real estate properties. “FFO attributable to common shareholders” reflects a reduction for the redeemable noncontrolling weighted average diluted interest in the Operating Partnership.

(2)Per share/unit amounts of components will not necessarily sum to the total due to rounding to the nearest cent.

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 practices described in the April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts (“NAREIT”), as restated in 2018. The NAREIT white paper defines FFO as net income (calculated in accordance with GAAP), excluding (i) depreciation and amortization related to real estate, (ii) gains and losses from the sale of certain real estate assets, (iii) gains and losses from change in control, and (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

Considering the nature of our business as a real estate owner and operator, the Company believes that FFO is helpful to investors in measuring our operational performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance, such as gains or losses from sales of depreciated property and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. FFO (a) should not be considered as an alternative to net income (calculated in accordance with GAAP) for the purpose of measuring our financial performance, (b) is not an alternative to cash flows from operating activities (calculated in accordance with GAAP) as a measure of our liquidity, and (c) is not indicative of funds available to satisfy our cash needs, including our ability to make distributions. The Company’s computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.

From time to time, the Company may report or provide guidance with respect to “FFO, as adjusted,” which removes the impact of certain non-recurring and non-operating transactions or other items the Company does not consider to be representative of its core operating results including, without limitation, (i) gains or losses associated with the early extinguishment of debt, (ii) gains or losses associated with litigation involving the Company that is not in the normal course of business, (iii) merger and acquisition costs, (iv) the impact on earnings from employee severance, (v) the excess of redemption value over carrying value of preferred stock redemption, and (vi) the impact of prior period bad debt or the collection of accounts receivable previously written off (“prior period collection impact”) due to the recovery from the COVID-19 pandemic, which are not otherwise adjusted in the Company’s calculation of FFO.

Kite Realty Group Trust

Same Property Net Operating Income (“NOI”)

(dollars in thousands)

(unaudited)


	Three Months Ended June 30,			Six Months Ended June 30,
	2024	2023	Change	2024	2023	Change

Number of properties in same property pool for the period(1)	177	177		177	177


Leased percentage at period end	94.8	%	94.5	%	94.8	%	94.5	%
Economic occupancy percentage at period end	91.6	%	92.3	%	91.6	%	92.3	%
Economic occupancy percentage(2)	91.3	%	92.5	%	91.2	%	92.5	%


Minimum rent	$	150,010	$	147,127			$	298,874	$	292,929
Tenant recoveries	41,523		39,765				83,663		80,630
Bad debt reserve	(1,584)		(332)				(2,138)		(2,192)
Other income, net	2,208		2,120				4,784		4,693
Total revenue	192,157		188,680				385,183		376,060

Property operating	(24,341)		(23,113)				(49,748)		(46,421)
Real estate taxes	(25,288)		(25,555)				(50,634)		(51,072)
Total expenses	(49,629)		(48,668)				(100,382)		(97,493)

Same Property NOI	$	142,528	$	140,012	1.8	%	$	284,801	$	278,567	2.2	%


Reconciliation of Same Property NOI to most directly comparable GAAP measure:
Net operating income – same properties	$	142,528	$	140,012			$	284,801	$	278,567

Net operating income – non-same activity(3)	11,397		13,778				21,633		25,705
Total property NOI	153,925		153,790		0.1	%	306,434		304,272		0.7	%
Other income, net	7,441		1,417				10,806		3,376
General, administrative and other	(12,966)		(14,499)				(25,750)		(27,883)


Impairment charges	(66,201)		—				(66,201)		—
Depreciation and amortization	(99,291)		(109,462)				(199,670)		(217,533)
Interest expense	(30,981)		(27,205)				(61,345)		(52,630)
(Loss) gain on sales of operating properties, net	(1,230)		28,440				(1,466)		28,440
Gain on sale of unconsolidated property, net	—		—				2,325		—
Net loss (income) attributable to noncontrolling interests	665		(423)				385		(593)
Net (loss) income attributable to common shareholders	$	(48,638)	$	32,058			$	(34,482)	$	37,449

(1)Same Property NOI excludes the following: (i) properties acquired or placed in service during 2023 and 2024; (ii) The Landing at Tradition – Phase II, which was reclassified from active redevelopment into our operating portfolio in June 2023; (iii) our active development and redevelopment projects at Carillon medical office building and The Corner – IN; (iv) Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively; (v) properties sold or classified as held for sale during 2023 and 2024; and (vi) office properties.

(2)Excludes leases that are signed but for which tenants have not yet commenced the payment of cash rent. Calculated as a weighted average based on the timing of cash rent commencement and expiration during the period.

(3)Includes non-cash activity across the portfolio as well as NOI from properties not included in the same property pool, including properties sold during both periods.

The Company uses property 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 termination fees received from tenants, less our property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions and certain corporate level expenses, including merger and acquisition costs. The Company believes that NOI is helpful to investors as a measure of our operating performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance, such as depreciation and amortization, interest expense, and impairment, if any.

When the Company receives payments in excess of any accounts receivable for terminating a lease, Same Property NOI will include such excess payments as monthly rent until the earlier of the expiration of 12 months or the start date of a replacement tenant. The Company believes that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full periods presented. The Company believes such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular periods presented and thus provides a more consistent metric for the comparison of our properties. Same Property NOI includes the results of properties that have been owned for the entire current and prior year reporting periods.

NOI and Same Property NOI should not, however, be considered as alternatives to net income (calculated in accordance with GAAP) as indicators of our financial performance. The Company’s computation of NOI and Same Property NOI may differ from the methodology used by other REITs and, therefore, may not be comparable to such other REITs.

When evaluating the properties that are included in the same property pool, we have established specific criteria for determining the inclusion of properties acquired or those recently under development. An acquired property is included in the same property pool when there is a full quarter of operations in both years subsequent to the acquisition date. Development and redevelopment properties are included in the same property pool four full quarters after the properties have been transferred to the operating portfolio. A redevelopment property is first excluded from the same property pool when the execution of a redevelopment plan is likely and we (a) begin recapturing space from tenants or (b) the contemplated plan significantly impacts the operations of the property. For the three and six months ended June 30, 2024, the same property pool excludes the following: (i) properties acquired or placed in service during 2023 and 2024; (ii) The Landing at Tradition – Phase II, which was reclassified from active redevelopment into our operating portfolio in June 2023; (iii) our active development and redevelopment projects at Carillon medical office building and The Corner – IN; (iv) Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively; (v) properties sold or classified as held for sale during 2023 and 2024; and (vi) office properties.

Kite Realty Group Trust

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)

(dollars in thousands)

(unaudited)


	Three Months Ended June 30, 2024

Net loss	$	(49,303)
Depreciation and amortization	99,291
Interest expense	30,981
Income tax expense of taxable REIT subsidiaries	132
EBITDA	81,101
Unconsolidated Adjusted EBITDA	611


Impairment charges	66,201
Loss on sales of operating properties, net	1,230

Other income and expense, net	(4,121)
Noncontrolling interests	(203)

Adjusted EBITDA	$	144,819

Annualized Adjusted EBITDA(1)	$	579,276

Company share of Net Debt:
Mortgage and other indebtedness, net	$	3,015,626
Plus: Company share of unconsolidated joint venture debt	56,759
Less: Partner share of consolidated joint venture debt(2)	(9,825)
Less: debt discounts, premiums and issuance costs, net	(14,865)
Company’s consolidated debt and share of unconsolidated debt	3,047,695
Less: cash, cash equivalents, restricted cash and short-term deposits	(281,737)
Company share of Net Debt	$	2,765,958

Net Debt to Adjusted EBITDA	4.8x

(1)Represents Adjusted EBITDA for the three months ended June 30, 2024 (as shown in the table above) multiplied by four.

(2)Partner share of consolidated joint venture debt is calculated based upon the partner’s pro rata ownership of the joint venture, multiplied by the related secured debt balance.

The Company defines EBITDA, a non-GAAP financial measure, as net income before interest expense, income tax expense of the taxable REIT subsidiaries, and depreciation and amortization. For informational purposes, the Company also provides Adjusted EBITDA, which it defines as EBITDA less (i) EBITDA from unconsolidated entities, as adjusted, (ii) gains on sales of operating properties or impairment charges, (iii) merger and acquisition costs, (iv) other income and expense, (v) noncontrolling interest Adjusted EBITDA, and (vi) other non-recurring activity or items impacting comparability from period to period. Annualized Adjusted EBITDA is Adjusted EBITDA for the most recent quarter multiplied by four. Net Debt to Adjusted EBITDA is the Company’s share of net debt divided by Annualized Adjusted EBITDA. EBITDA, Adjusted EBITDA, Annualized Adjusted EBITDA and Net Debt to Adjusted EBITDA, as calculated by the Company, are not comparable to EBITDA and EBITDA-related measures reported by other REITs that do not define EBITDA and EBITDA-related measures exactly as we do. EBITDA, Adjusted EBITDA and Annualized Adjusted EBITDA do not represent cash generated from operating activities in accordance with GAAP and should not be considered alternatives to net income as an indicator of performance or as alternatives to cash flows from operating activities as an indicator of liquidity.

Considering the nature of our business as a real estate owner and operator, the Company believes that EBITDA, Adjusted EBITDA and the ratio of Net Debt to Adjusted EBITDA are helpful to investors in measuring our operational performance because they exclude various items included in net income that do not relate to or are not indicative of our operating performance, such as gains or losses from sales of depreciated property and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. For informational purposes, the Company also provides Annualized Adjusted EBITDA, adjusted as described above. The Company believes this supplemental information provides a meaningful measure of its operating performance. The Company believes presenting EBITDA and the related measures in this manner allows investors and other interested parties to form a more meaningful assessment of the Company’s operating results.

EX-99.2 3 exhibit99_2xq22024.htm EX-99.2 Q2 2024 SUPPLEMENTAL Document


						Exhibit 99.2

Kite Realty Group Trust

Quarterly Financial Supplement as of June 30, 2024

T A B L E O F C O N T E N T S


Earnings Press Release			i–iii
Contact Information			1
Results Overview			2
Consolidated Balance Sheets			3
Consolidated Statements of Operations			4
Same Property Net Operating Income			5
Net Operating Income and Adjusted EBITDA by Quarter			6
Funds From Operations			7
Joint Venture Summary			8
Key Debt Metrics			9
Summary of Outstanding Debt			10
Maturity Schedule of Outstanding Debt			11
Acquisitions and Dispositions			12
Development and Redevelopment Projects			13
Geographic Diversification – Retail ABR by Region and State			14
Top 25 Tenants by ABR			15
Retail Leasing Spreads			16
Lease Expirations			17
Components of Net Asset Value			18
Non-GAAP Financial Measures			19–20

Kite Realty Group Trust | 30 South Meridian Street, Suite 1100 | Indianapolis, Indiana 46204 | 888.577.5600 | www.kiterealty.com

PRESS RELEASE

Contact Information: Kite Realty Group Trust

Tyler Henshaw

SVP, Capital Markets & Investor Relations

317.713.7780

thenshaw@kiterealty.com

Kite Realty Group Trust Reports Second Quarter 2024 Operating Results

Company raises 2024 NAREIT FFO and Same Property NOI guidance

Leased approximately 1.2 million square feet at 15.6% comparable blended cash leasing spreads

Received a credit rating upgrade to BBB from S&P Ratings

Improved Net Debt to Adjusted EBITDA to 4.8x, an all-time low for KRG

Board of Trustees raises quarterly dividend on common shares by 8.3% on a year-over-year basis

Second Quarter 2024 Financial and Operational Results

▪Generated NAREIT FFO of the Operating Partnership of $117.5 million, or $0.53 per diluted share, for the second quarter and $230.3 million, or $1.03 per diluted share, year to date.

▪Same Property NOI increased by 1.8% for the second quarter and increased by 2.2% year to date.

▪Executed 160 new and renewal leases representing approximately 1.2 million square feet.

▪Blended cash leasing spreads of 15.6% on 136 comparable leases, including 34.8% on 40 comparable new leases, 14.3% on 60 comparable non-option renewals and 6.0% on 36 comparable option renewals.

▪Cash leasing spreads of 23.7% on a blended basis for comparable new and non-option renewal leases.

▪Operating retail portfolio ABR per square foot of $20.90 at June 30, 2024, a 3.5% increase year-over-year.

▪Retail portfolio leased percentage of 94.8% at June 30, 2024, an 80-basis point increase sequentially.


			i

▪Portfolio leased-to-occupied spread at period end of 320 basis points, which represents $35.3 million of signed-not-open NOI.

Second Quarter 2024 Capital Allocation Activity

▪Sold Ashland & Roosevelt (Chicago, IL), a 104,176 square foot center, for $30.6 million.

Second Quarter 2024 Balance Sheet Overview

▪As of June 30, 2024, the Company’s net debt to Adjusted EBITDA was 4.8x.

▪S&P Ratings upgraded the Company’s corporate credit rating to BBB from BBB- with a stable rating outlook.

Dividend

2024 Earnings Guidance

▪2024 Same Property NOI range of 2.0% to 3.0%, which represents a 50-basis point increase at the midpoint.

▪Full-year bad debt assumption of 0.5% to 1.0% of total revenues, which represents a 5-basis point decrease at the midpoint.

The following table reconciles the Company’s 2024 net income guidance range to the Company’s 2024 NAREIT FFO guidance range:


	Low		High

Net income	$	0.00	$	0.04
Depreciation and amortization	1.74		1.74
Realized loss on sales of operating properties, net	0.01		0.01
Realized gain on sale of unconsolidated property, net	(0.01)		(0.01)
Impairment charges	0.30		0.30
NAREIT FFO	$	2.04	$	2.08

Earnings Conference Call

About Kite Realty Group Trust


			ii

Connect with KRG: LinkedIn | Twitter | Instagram | Facebook

Safe Harbor


			iii

Kite Realty Group Trust

Contact Information

Corporate Office

30 South Meridian Street, Suite 1100

Indianapolis, IN 46204

(888) 577-5600

(317) 577-5600

www.kiterealty.com

Investor Relations Contact

Analyst Coverage

Tyler Henshaw

Robert W. Baird & Co.

Jefferies LLC

Senior Vice President, Capital Markets and IR

Mr. Wes Golladay

Ms. Linda Tsai

(317) 713-7780

(216) 737-7510

(212) 778-8011

thenshaw@kiterealty.com

wgolladay@rwbaird.com

ltsai@jefferies.com

Matt Hunt

Bank of America/Merrill Lynch

J.P. Morgan

Director, Capital Markets and IR

Mr. Jeffrey Spector

Mr. Michael W. Mueller/Mr. Hongliang Zhang

(317) 713-7646

(646) 855-1363

(212) 622-6689/(212) 622-6416

mhunt@kiterealty.com

jeff.spector@bofa.com

michael.w.mueller@jpmorgan.com/

hongliang.zhang@jpmorgan.com

Transfer Agent

BTIG

KeyBanc Capital Markets

Broadridge Financial Solutions

Mr. Michael Gorman

Mr. Todd Thomas

Ms. Kristen Tartaglione

(212) 738-6138

(917) 368-2286

2 Journal Square, 7th Floor

mgorman@btig.com

tthomas@keybanccm.com

Jersey City, NJ 07306

(201) 714-8094

Citigroup Global Markets

Piper Sandler

Mr. Craig Mailman

Mr. Alexander Goldfarb

(212) 816-4471

(212) 466-7937

craig.mailman@citi.com

alexander.goldfarb@psc.com

Stock Specialist

GTS

Compass Point Research & Trading, LLC

Raymond James

545 Madison Avenue, 15th Floor

Mr. Floris van Dijkum

Mr. RJ Milligan

New York, NY 10022

(646) 757-2621

(727) 567-2585

(212) 715-2830

fvandijkum@compasspointllc.com

rjmilligan@raymondjames.com

Green Street

Wells Fargo

Ms. Paulina Rojas Schmidt

Mr. James Feldman/Ms. Dori Kesten

(949) 640-8780

(212) 215-5328/(617) 603-4233

projasschmidt@greenstreet.com

james.feldman@wellsfargo.com/

dori.kesten@wellsfargo.com


2nd Quarter 2024 Supplemental Financial and Operating Statistics			1

Kite Realty Group Trust

Results Overview

(dollars in thousands, except per share and per square foot amounts)


	Three Months Ended June 30,						Six Months Ended June 30,
Summary Financial Results	2024			2023			2024			2023

Total revenue (page 4)	$	212,434		$	208,759		$	419,873		$	415,509
Net (loss) income attributable to common shareholders (page 4)	$	(48,638)		$	32,058		$	(34,482)		$	37,449
Net (loss) income per diluted share (page 4)	$	(0.22)		$	0.15		$	(0.16)		$	0.17
Net operating income (NOI) (page 6)	$	153,925		$	153,790		$	306,434		$	304,272
Adjusted EBITDA (page 6)	$	144,411		$	140,331		$	284,451		$	279,200
NAREIT Funds From Operations (FFO) (page 7)	$	117,487		$	113,747		$	230,327		$	227,513
NAREIT FFO per diluted share (page 7)	$	0.53		$	0.51		$	1.03		$	1.02



Dividend payout ratio (as % of NAREIT FFO, as adjusted)	47		%	47		%	49		%	47		%


	Three Months Ended
Summary Operating and Financial Ratios	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023

NOI margin (page 6)	73.8		%	73.8		%	76.2		%	73.9		%	74.2		%
NOI margin – retail (page 6)	74.3		%	74.4		%	76.5		%	74.4		%	74.4		%
Same property NOI performance (page 5)	1.8		%	1.8		%	2.8		%	4.7		%	5.7		%
Total property NOI performance (page 5)	0.1		%	1.3		%	2.0		%	3.1		%	5.4		%
Net debt to Adjusted EBITDA, current quarter (page 9)	4.8x			5.1x			5.1x			5.1x			5.0x
Recovery ratio of retail operating properties (page 6)	91.6		%	91.6		%	92.2		%	90.8		%	87.4		%
Recovery ratio of consolidated portfolio (page 6)	87.8		%	86.9		%	87.4		%	85.9		%	82.7		%

Outstanding Classes of Stock
Common shares and units outstanding (page 18)	223,361,957			223,310,866			222,961,297			222,822,226			222,408,487

Summary Portfolio Statistics
Number of properties
Operating retail (page 14)(1)	178			180			180			180			181
Office and other components	11			11			11			11			12
Development and redevelopment projects (page 13)	2			2			2			2			2
Owned retail operating gross leasable area (GLA)(2) (page 14)	27.6		M	28.1		M	28.1		M	28.3		M	28.6		M
Owned office GLA	1.4		M	1.4		M	1.4		M	1.4		M	1.6		M
Number of multifamily units(3)(4)	1,405			1,405			1,672			1,672			1,672
Percent leased – total	94.3		%	93.8		%	93.7		%	93.3		%	93.8		%
Percent leased – retail	94.8		%	94.0		%	93.9		%	93.4		%	94.1		%
Anchor	96.8		%	95.9		%	95.5		%	95.1		%	96.5		%
Small shop	90.8		%	90.5		%	90.8		%	90.2		%	89.4		%

Annualized base rent (ABR) per square foot	$	20.90		$	20.84		$	20.70		$	20.56		$	20.19

Total new and renewal lease GLA (page 16)	1,153,766			968,681			1,290,090			1,398,695			1,331,056
New lease cash rent spread (page 16)	34.8		%	48.1		%	43.0		%	36.0		%	45.5		%
Non-option renewal lease cash rent spread (page 16)	14.3		%	12.2		%	9.2		%	17.8		%	11.9		%
Option renewal lease cash rent spread (page 16)	6.0		%	5.3		%	7.6		%	8.3		%	8.6		%
Total new and renewal lease cash rent spread (page 16)	15.6		%	12.8		%	14.5		%	14.2		%	14.8		%

2024 Guidance

Current
(as of 7/30/24)

Previous
(as of 4/30/24)

Original
(as of 2/13/24)

NAREIT FFO per diluted share

$2.04 to $2.08

$2.02 to $2.08

$2.00 to $2.06

Credit Ratings and Outlook

Fitch Ratings

BBB / Positive

Moody's Investors Services

Baa2 / Stable

Standard & Poor's Rating Services

BBB / Stable

(1)Excludes one operating retail property classified as held for sale as of June 30, 2024.

(2)Owned GLA represents gross leasable area owned by the Company and excludes the square footage of non-retail property components and development and redevelopment projects.

(3)Represents the number of multifamily units that the Company has an economic interest in.

(4)On January 31, 2024, the joint venture that owned Glendale Center Apartments in the Indianapolis MSA sold the 267-unit property to a third party.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			2

Kite Realty Group Trust

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)


	June 30, 2024		December 31, 2023
Assets:
Investment properties, at cost	$	7,546,116	$	7,740,061
Less: accumulated depreciation	(1,447,549)		(1,381,770)
Net investment properties	6,098,567		6,358,291

Cash and cash equivalents	153,835		36,413
Tenant and other receivables, including accrued straight-line rent of $62,035 and $55,482, respectively	120,012		113,290
Restricted cash and escrow deposits	4,935		5,017
Deferred costs, net	263,884		304,171
Short-term deposits	120,000		—
Prepaid and other assets	114,159		117,834
Investments in unconsolidated subsidiaries	9,970		9,062
Assets associated with investment property held for sale	73,558		—
Total assets	$	6,958,920	$	6,944,078

Liabilities and Equity:
Liabilities:
Mortgage and other indebtedness, net	$	3,015,626	$	2,829,202
Accounts payable and accrued expenses	189,688		198,079
Deferred revenue and other liabilities	250,103		272,942
Liabilities associated with investment property held for sale	3,930		—
Total liabilities	3,459,347		3,300,223

Commitments and contingencies
Limited Partners’ interests in the Operating Partnership	76,093		73,287

Equity:
Common shares, $0.01 par value, 490,000,000 shares authorized, 219,654,953 and 219,448,429 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	2,197		2,194
Additional paid-in capital	4,886,532		4,886,592
Accumulated other comprehensive income	50,255		52,435
Accumulated deficit	(1,517,383)		(1,373,083)
Total shareholders’ equity	3,421,601		3,568,138
Noncontrolling interests	1,879		2,430
Total equity	3,423,480		3,570,568
Total liabilities and equity	$	6,958,920	$	6,944,078


2nd Quarter 2024 Supplemental Financial and Operating Statistics			3

Kite Realty Group Trust

Consolidated Statements of Operations

(dollars in thousands, except per share amounts)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenue:
Rental income	$	205,836	$	205,836	$	411,649	$	408,899
Other property-related revenue	3,146		1,883		4,457		3,799
Fee income	3,452		1,040		3,767		2,811
Total revenue	212,434		208,759		419,873		415,509

Expenses:
Property operating	28,564		27,232		56,645		54,546
Real estate taxes	26,493		26,697		53,027		53,880
General, administrative and other	12,966		14,499		25,750		27,883

Depreciation and amortization	99,291		109,462		199,670		217,533
Impairment charges	66,201		—		66,201		—
Total expenses	233,515		177,890		401,293		353,842

(Loss) gain on sales of operating properties, net	(1,230)		28,440		(1,466)		28,440

Operating (loss) income	(22,311)		59,309		17,114		90,107
Other (expense) income:
Interest expense	(30,981)		(27,205)		(61,345)		(52,630)
Income tax expense of taxable REIT subsidiaries	(132)		(45)		(290)		(16)

Equity in (loss) earnings of unconsolidated subsidiaries	(174)		118		(594)		(126)
Gain on sale of unconsolidated property, net	—		—		2,325		—
Other income, net	4,295		304		7,923		707
Net (loss) income	(49,303)		32,481		(34,867)		38,042
Net loss (income) attributable to noncontrolling interests	665		(423)		385		(593)
Net (loss) income attributable to common shareholders	$	(48,638)	$	32,058	$	(34,482)	$	37,449

Net (loss) income per common share – basic and diluted	$	(0.22)	$	0.15	$	(0.16)	$	0.17


Weighted average common shares outstanding – basic	219,622,059		219,354,275		219,561,586		219,294,255
Weighted average common shares outstanding – diluted	219,622,059		220,032,366		219,561,586		219,999,440


2nd Quarter 2024 Supplemental Financial and Operating Statistics			4

Kite Realty Group Trust

Same Property Net Operating Income (“NOI”)

(dollars in thousands)

(unaudited)


	Three Months Ended June 30,			Six Months Ended June 30,
	2024	2023	Change	2024	2023	Change

Number of properties in same property pool for the period(1)	177	177		177	177


Leased percentage at period end	94.8	%	94.5	%	94.8	%	94.5	%
Economic occupancy percentage at period end	91.6	%	92.3	%	91.6	%	92.3	%
Economic occupancy percentage(2)	91.3	%	92.5	%	91.2	%	92.5	%


Minimum rent	$	150,010	$	147,127			$	298,874	$	292,929
Tenant recoveries	41,523		39,765				83,663		80,630
Bad debt reserve	(1,584)		(332)				(2,138)		(2,192)
Other income, net	2,208		2,120				4,784		4,693
Total revenue	192,157		188,680				385,183		376,060

Property operating	(24,341)		(23,113)				(49,748)		(46,421)
Real estate taxes	(25,288)		(25,555)				(50,634)		(51,072)
Total expenses	(49,629)		(48,668)				(100,382)		(97,493)

Same Property NOI	$	142,528	$	140,012	1.8	%	$	284,801	$	278,567	2.2	%


Reconciliation of Same Property NOI to most directly comparable GAAP measure:
Net operating income – same properties	$	142,528	$	140,012			$	284,801	$	278,567

Net operating income – non-same activity(3)	11,397		13,778				21,633		25,705
Total property NOI	153,925		153,790		0.1	%	306,434		304,272		0.7	%
Other income, net	7,441		1,417				10,806		3,376
General, administrative and other	(12,966)		(14,499)				(25,750)		(27,883)


Impairment charges	(66,201)		—				(66,201)		—
Depreciation and amortization	(99,291)		(109,462)				(199,670)		(217,533)
Interest expense	(30,981)		(27,205)				(61,345)		(52,630)
(Loss) gain on sales of operating properties, net	(1,230)		28,440				(1,466)		28,440
Gain on sale of unconsolidated property, net	—		—				2,325		—
Net loss (income) attributable to noncontrolling interests	665		(423)				385		(593)
Net (loss) income attributable to common shareholders	$	(48,638)	$	32,058			$	(34,482)	$	37,449

(1)Same Property NOI excludes the following:

▪properties acquired or placed in service during 2023 and 2024;

▪The Landing at Tradition – Phase II, which was reclassified from active redevelopment into our operating portfolio in June 2023;

▪our active development and redevelopment projects at Carillon medical office building and The Corner – IN noted on page 13;

▪Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively;

▪properties sold or classified as held for sale during 2023 and 2024; and

▪office properties.

(3)Includes non-cash activity across the portfolio as well as NOI from properties not included in the same property pool, including properties sold during both periods.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			5

Kite Realty Group Trust

Net Operating Income and Adjusted EBITDA by Quarter

(dollars in thousands)

(unaudited)


	Three Months Ended
	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Revenue:
Minimum rent(1)	$	151,116	$	150,598	$	147,773	$	150,126	$	153,566
Minimum rent – ground leases	10,492		10,447		10,482		10,010		10,402
Tenant reimbursements	44,422		43,577		37,693		42,280		41,047
Bad debt reserve	(1,544)		(589)		(1,452)		(219)		(233)
Other property-related revenue(2)	2,701		841		2,107		1,758		1,324
Overage rent	1,350		1,780		2,761		1,793		1,054

Total revenue	208,537		206,654		199,364		205,748		207,160

Expenses:
Property operating – recoverable(3)	24,257		23,763		21,218		22,905		23,095
Property operating – non-recoverable(3)	4,005		4,009		4,297		4,435		3,735
Real estate taxes	26,350		26,373		21,932		26,343		26,540
Total expenses	54,612		54,145		47,447		53,683		53,370

NOI	153,925		152,509		151,917		152,065		153,790

Other (expense) income:
General, administrative and other	(12,966)		(12,784)		(14,342)		(13,917)		(14,499)

Fee income	3,452		315		498		1,057		1,040

Total other (expense) income	(9,514)		(12,469)		(13,844)		(12,860)		(13,459)

Adjusted EBITDA	144,411		140,040		138,073		139,205		140,331

Impairment charges	(66,201)		—		—		(477)		—
Depreciation and amortization	(99,291)		(100,379)		(102,898)		(105,930)		(109,462)

Interest expense	(30,981)		(30,364)		(27,235)		(25,484)		(27,205)
Equity in (loss) earnings of unconsolidated subsidiaries	(174)		(420)		206		(47)		118
Gain on sale of unconsolidated property, net	—		2,325		—		—		—
Income tax expense of taxable REIT subsidiaries	(132)		(158)		(449)		(68)		(45)

Other income, net	4,295		3,628		334		950		304
(Loss) gain on sales of operating properties, net	(1,230)		(236)		133		(5,972)		28,440
Net (loss) income	(49,303)		14,436		8,164		2,177		32,481
Less: net loss (income) attributable to noncontrolling interests	665		(280)		(185)		(107)		(423)
Net (loss) income attributable to common shareholders	$	(48,638)	$	14,156	$	7,979	$	2,070	$	32,058


NOI/Revenue – Retail properties	74.3	%	74.4	%	76.5	%	74.4	%	74.4	%
NOI/Revenue	73.8	%	73.8	%	76.2	%	73.9	%	74.2	%
Recovery Ratios(4)
– Retail properties	91.6	%	91.6	%	92.2	%	90.8	%	87.4	%
– Consolidated	87.8	%	86.9	%	87.4	%	85.9	%	82.7	%

(1)Minimum rent includes $0.8 million, $2.0 million, $59,000, $262,000, and $3.6 million of lease termination income for the three months ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

(2)Other property-related revenue also includes the net operating results of Eddy Street Parking Garage, Union Station Parking Garage, and Pan Am Plaza Parking Garage, which was sold on June 8, 2023.

(3)Recoverable expenses include recurring G&A expense of $4.3 million allocable to the property operations in the three months ended June 30, 2024, a portion of which is recoverable. Non-recoverable expenses primarily include ground rent, professional fees, and marketing costs.

(4)“Recovery Ratios” are computed by dividing tenant reimbursements by the sum of recoverable property operating expense and real estate tax expense.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			6

Kite Realty Group Trust

Funds From Operations (“FFO”)(1)(2)

(dollars in thousands, except per share amounts)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Net (loss) income	$	(49,303)	$	32,481	$	(34,867)	$	38,042
Less: net income attributable to noncontrolling interests in properties	(74)		(30)		(141)		(134)
Add/less: loss (gain) on sales of operating properties, net	1,230		(28,440)		1,466		(28,440)
Less: gain on sale of unconsolidated property, net	—		—		(2,325)		—
Add: impairment charges	66,201		—		66,201		—
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	99,433		109,736		199,993		218,045
FFO of the Operating Partnership(1)	117,487		113,747		230,327		227,513
Less: Limited Partners’ interests in FFO	(1,946)		(1,547)		(3,768)		(3,054)
FFO attributable to common shareholders(1)	$	115,541	$	112,200	$	226,559	$	224,459
FFO, as defined by NAREIT, per share of the Operating Partnership – basic	$	0.53	$	0.51	$	1.03	$	1.02
FFO, as defined by NAREIT, per share of the Operating Partnership – diluted	$	0.53	$	0.51	$	1.03	$	1.02











Weighted average common shares outstanding – basic	219,622,059		219,354,275		219,561,586		219,294,255
Weighted average common shares outstanding – diluted	220,013,860		220,032,366		219,957,009		219,999,440

Weighted average common shares and units outstanding – basic	223,329,063		222,388,487		223,219,523		222,287,815
Weighted average common shares and units outstanding – diluted	223,720,864		223,066,578		223,614,946		222,993,000

FFO, as defined by NAREIT, per diluted share/unit
Net (loss) income	$	(0.22)	$	0.15	$	(0.16)	$	0.17
Less: net income attributable to noncontrolling interests in properties	0.00		0.00		0.00		0.00
Add/less: loss (gain) on sales of operating properties, net	0.01		(0.13)		0.01		(0.13)
Less: gain on sale of unconsolidated property, net	0.00		0.00		(0.01)		0.00
Add: impairment charges	0.30		0.00		0.30		0.00
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	0.44		0.49		0.89		0.98
FFO, as defined by NAREIT, of the Operating Partnership per diluted share/unit(1)(2)	$	0.53	$	0.51	$	1.03	$	1.02







Reconciliation of NAREIT FFO to Adjusted Funds From Operations (“AFFO”)
FFO of the Operating Partnership	$	117,487	$	113,747	$	230,327	$	227,513
Add:
Amortization of deferred financing costs	987		894		1,916		1,782
Non-cash compensation expense and other	2,906		2,801		5,628		5,613
Less:
Straight-line rent – minimum rent and common area maintenance	3,651		3,416		6,776		6,962
Market rent amortization income	2,390		2,733		4,657		5,465
Amortization of debt discounts, premiums and hedge instruments	3,734		4,995		7,490		9,998
Maintenance capital expenditures	6,927		4,998		12,665		8,037
Tenant-related capital expenditures(3)	25,226		24,169		43,644		39,308
Total Recurring AFFO of the Operating Partnership	$	79,452	$	77,131	$	162,639	$	165,138

(2)Per share/unit amounts of components will not necessarily sum to the total due to rounding to the nearest cent.

(3)Excludes landlord work, tenant improvements and leasing commissions related to development and redevelopment projects.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			7

Kite Realty Group Trust

Joint Venture Summary as of June 30, 2024

(dollars in thousands)


Consolidated Investments
Investments	Total Debt		Partner Economic Ownership Interest(1)		Partner Share of Debt		Partner Share of Annual EBITDA

Delray Marketplace	$	15,800	2	%	$	316	$	—
One Loudoun – Pads G&H Residential	95,095		10	%	9,509		812
Total	$	110,895			$	9,825	$	812


Unconsolidated Investments
Investments	Retail GLA	Multifamily Units	Total Debt		KRG Economic Ownership Interest		KRG Share of Debt		KRG Investment		KRG Share of Quarterly Adjusted EBITDA		KRG Share of Quarterly Adjusted EBITDA Annualized

Three Property Retail Portfolio	416,582	—	$	51,890	20	%	$	10,378	$	6,348	$	253	$	1,012
Glendale Center Apartments(2)	—	—	—		11.5	%	—		546		—		—
Embassy Suites at Eddy Street Commons(3)	—	—	32,341		35	%	11,319		—		317		1,268
The Corner (development)	24,000	285	70,123		50	%	35,062		562		7		28
Other investments	—	—	—		—	%	—		2,514		34		136
Total	440,582	285	$	154,354			$	56,759	$	9,970	$	611	$	2,444

(1)Economic ownership % represents the partner’s share of cash flow.

(2)On January 31, 2024, the joint venture sold the property to a third party. The Company recorded a $2.3 million gain on sale of unconsolidated property representing its 11.5% share of the gain on sale.

(3)Subsequent to June 30, 2024, the joint venture repaid the outstanding debt with the Company contributing $10.2 million representing its 35% share of the debt repaid.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			8

Kite Realty Group Trust

Key Debt Metrics as of June 30, 2024

(dollars in thousands)


Senior Unsecured Notes Covenants
	June 30, 2024			Debt Covenant Threshold(1)

Total debt to undepreciated assets	36%			<60%

Secured debt to undepreciated assets	2%			<40%

Undepreciated unencumbered assets to unsecured debt	287%			>150%

Debt service coverage	4.9x			>1.5x

Unsecured Credit Facility Covenants
	June 30, 2024			Debt Covenant Threshold(1)

Maximum leverage	35%			<60%

Minimum fixed charge coverage	4.2x			>1.5x

Secured indebtedness	2.4%			<45%

Unsecured debt interest coverage	4.3x			>1.75x

Unsecured leverage	33%			<60%

Senior Unsecured Debt Ratings

Fitch Ratings	BBB/Positive
Moody's Investors Service	Baa2/Stable
Standard & Poor's Rating Services	BBB/Stable


Liquidity

Cash, cash equivalents and short-term deposits	$	273,835
Availability under unsecured credit facility	1,100,000
	$	1,373,835


Unencumbered NOI as a % of Total NOI	95		%

(1)For a complete listing of all debt covenants related to the Company’s Senior Unsecured Notes and Unsecured Credit Facility, as well as definitions of the terms, refer to the Company’s filings with the SEC.


Net Debt to Adjusted EBITDA
Mortgage and other indebtedness, net			$	3,015,626
Plus: Company share of unconsolidated joint venture debt			56,759
Less: Partner share of consolidated joint venture debt			(9,825)
Less: debt discounts, premiums and issuance costs, net			(14,865)
Company's consolidated debt and share of unconsolidated debt			3,047,695
Less: cash, cash equivalents, restricted cash and short-term deposits			(281,737)
Company share of Net Debt			$	2,765,958

Q2 2024 Adjusted EBITDA, Annualized:
– Consolidated Adjusted EBITDA	$	577,644
– Unconsolidated Adjusted EBITDA(2)	2,444
– Minority interest Adjusted EBITDA(2)	(812)		579,276
Ratio of Company share of Net Debt to Adjusted EBITDA			4.8x

(2)See page 8 for details.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			9

Kite Realty Group Trust

Summary of Outstanding Debt as of June 30, 2024

(dollars in thousands)


Total Outstanding Debt	Amount Outstanding		Ratio		Weighted Average Interest Rate		Weighted Average Years to Maturity

Fixed rate debt(1)	$	2,829,961	93	%	4.03	%	4.4
Variable rate debt(2)	170,800		5	%	8.65	%	2.3
Debt discounts, premiums and issuance costs, net	14,865		N/A		N/A		N/A
Total consolidated debt	3,015,626		98	%	4.29	%	4.3
KRG share of unconsolidated debt	56,759		2	%	7.33	%	3.7
Total	$	3,072,385	100	%	4.35	%	4.2


Schedule of Maturities by Year
	Secured Debt
	Scheduled Principal Payments		Term Maturities		Unsecured Debt		Total Consolidated Debt		Total Unconsolidated Debt		Total Debt Outstanding

2024	$	2,576	$	—	$	120,000	$	122,576	$	143	$	122,719
2025	5,248		—		430,000		435,248		11,176		446,424
2026	4,581		—		550,000		554,581		—		554,581
2027	3,120		10,600		250,000		263,720		—		263,720
2028	3,757		—		350,000		353,757		45,440		399,197
2029 and beyond	28,091		92,788		1,150,000		1,270,879		—		1,270,879
Debt discounts, premiums and issuance costs, net	—		976		13,889		14,865		—		14,865
Total	$	47,373	$	104,364	$	2,863,889	$	3,015,626	$	56,759	$	3,072,385

(1)Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of June 30, 2024, $820.0 million in variable rate debt is hedged to a fixed rate for a weighted average of 1.2 years.

(2)Variable rate debt includes the portion of fixed rate debt that has been hedged by interest rate swaps. As of June 30, 2024, $155.0 million in fixed rate debt is hedged to a floating rate for a weighted average of 1.2 years.

(a)Reflects the payoff of the $120.0 million unsecured term loan that matured on July 17, 2024 using a portion of the proceeds from the January 2024 issuance of $350.0 million in aggregate principal amount of 5.50% senior unsecured notes due 2034.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			10

Kite Realty Group Trust

Maturity Schedule of Outstanding Debt as of June 30, 2024

(dollars in thousands)


Description	Interest Rate(1)	Maturity Date	Balance as of June 30, 2024		% of Total Outstanding

Unsecured Term Loan(2)	2.68%	7/17/2024	$	120,000
2024 Debt Maturities	2.68%		120,000		4	%

Senior Unsecured Notes	4.00%	3/15/2025	350,000
Senior Unsecured Notes(3)	SOFR + 365	9/10/2025	80,000
2025 Debt Maturities	4.88%		430,000		14	%

Unsecured Term Loan(4)	2.73%	7/17/2026	150,000
Senior Unsecured Notes	4.08%	9/30/2026	100,000
Senior Unsecured Notes	4.00%	10/1/2026	300,000
2026 Debt Maturities	3.67%		550,000		18	%

Unsecured Credit Facility(5)	SOFR + 115	1/8/2027	—
Senior Unsecured Exchangeable Notes	0.75%	4/1/2027	175,000
Northgate North	4.50%	6/1/2027	22,025
Delray Marketplace(6)	BSBY + 215	8/4/2027	15,800
Senior Unsecured Notes(3)	SOFR + 375	9/10/2027	75,000
2027 Debt Maturities	3.51%		287,825		9	%

Unsecured Term Loan(7)	5.09%	10/24/2028	250,000
Senior Unsecured Notes	4.24%	12/28/2028	100,000
2028 Debt Maturities	4.85%		350,000		11	%

Senior Unsecured Notes	4.82%	6/28/2029	100,000
Unsecured Term Loan(8)	3.82%	7/29/2029	300,000
Rampart Commons	5.73%	6/10/2030	6,109
Senior Unsecured Notes	4.75%	9/15/2030	400,000
The Shoppes at Union Hill	3.75%	6/1/2031	8,464
Nora Plaza Shops	3.80%	2/1/2032	3,268
One Loudoun – Pads G&H Residential	5.36%	5/1/2033	95,095
Senior Unsecured Notes(9)	4.60%	3/1/2034	350,000
2029 and beyond Debt Maturities	4.53%		1,262,936		41	%
Debt discounts, premiums and issuance costs, net			14,865
Total debt per consolidated balance sheet	4.29%		$	3,015,626	98	%

KRG share of unconsolidated debt
Embassy Suites at Eddy Street Commons(10)	SOFR + 261	7/1/2025	$	11,319
Three Property Retail Portfolio	4.09%	7/1/2028	10,378
The Corner (development)(11)	SOFR + 286	12/29/2028	35,062
Total KRG share of unconsolidated debt	7.33%		56,759		2	%
Total consolidated and KRG share of unconsolidated debt	4.35%		$	3,072,385

(1)At June 30, 2024, daily SOFR was 5.33%, one-month SOFR was 5.34%, three-month SOFR was 5.06%, and one-month BSBY was 5.39%.

(2)Term loan is hedged to a fixed rate of 1.58% plus a credit spread of 1.10% based on the Company’s current credit rating. This debt was repaid subsequent to June 30, 2024.

(3)Notes due 2025 are hedged to a floating rate until September 10, 2025. Notes due 2027 are hedged to a floating rate until September 10, 2025 and revert back to a fixed rate of 4.57% until maturity in 2027.

(4)Term loan is hedged to a fixed rate of 1.68% plus a credit spread of 1.05% based on the Company’s current credit rating.

(5)Assumes the Company exercises its option to extend the maturity date by one year to 2027.

(6)Property is held in a joint venture. The loan is guaranteed by Kite Realty Group, LP. Assumes the Company exercises its option to extend the maturity date by one year to 2027.

(7)Assumes the Company exercises three one-year options to extend the maturity date to 2028. Term loan is hedged to a fixed rate of 5.09% until the initial maturity of October 24, 2025. Term loan interest rate reverts back to a floating rate of SOFR plus 2.10% beyond the initial maturity date.

(8)Term loan is hedged to a fixed rate of 2.47% through August 1, 2025. Term loan interest rate reverts back to a floating rate of SOFR from August 1, 2025 to the maturity date of July 29, 2029. In addition to the indicated rate, a credit spread of 1.35% is applicable across both time periods based on the Company’s current credit rating.

(9)Interest rate reflects the impact of forward-starting interest rate swaps that fixed the underlying index on a portion of the outstanding principal prior to the issuance of the unsecured notes.

(10)Approximately $10.4 million was hedged to a fixed rate of 5.03% until June 29, 2024, and the remaining balance floated at SOFR plus 2.61%. Subsequent to June 30, 2024, the joint venture debt was repaid.

(11)The Corner (development) includes three loans with varying rates and maturity dates. As of June 30, 2024, the loans had a weighted average interest rate of 8.09% and a majority of the amount outstanding was at a floating rate. The maturity date shown is the weighted average maturity date as of June 30, 2024.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			11

Kite Realty Group Trust

Acquisitions and Dispositions

(dollars in thousands)

Acquisitions

The Company did not acquire any properties during the six months ended June 30, 2024.

Dispositions

Property Name

Disposition Date

MSA

Property Type

GLA

Sales Price

Ashland & Roosevelt

May 31, 2024

Chicago

Multi-tenant retail

104,176

30,600


2nd Quarter 2024 Supplemental Financial and Operating Statistics			12

Kite Realty Group Trust

Development and Redevelopment Projects

(dollars in thousands)


Project	MSA	KRG Ownership %	Projected Completion Date(1)	Total Commercial GLA	Total Multifamily Units	Total Project Costs – at KRG's Share(2)		KRG Equity Requirement(2)		KRG Remaining Spend		Estimated Stabilized NOI to KRG	Estimated Remaining NOI to Come Online(3)

Active Projects

Carillon MOB	Washington, D.C./Baltimore	100%	Q4 2024	126,000	—	$	59,700	$	59,700	$	26,600	$3.5M–$4.0M	$1.0M–$1.5M

The Corner – IN(4)	Indianapolis, IN	50%	Q4 2024	24,000	285	31,900		—		—		$1.7M–$1.9M	$1.7M–$1.9M

Total				150,000	285	$	91,600	$	59,700	$	26,600	$5.2M–$5.9M	$2.7M–$3.4M

Future Opportunities(5)

Project

MSA

Project Description

Hamilton Crossing Centre – Phase II

Indianapolis, IN

Addition of mixed-use (multifamily, office and retail) components adjacent to the Republic Airways headquarters.

Carillon

Washington, D.C./Baltimore

Potential of 1.2 million square feet of commercial GLA and 3,000 multifamily units for additional expansion.

One Loudoun Downtown

Washington, D.C./Baltimore

Potential of 1.9 million square feet of commercial GLA and 1,745 multifamily units for additional expansion.

Main Street Promenade

Chicago, IL

Potential of 16,000 square feet of commercial GLA for additional expansion.

Downtown Crown

Washington, D.C./Baltimore

Potential of 42,000 square feet of commercial GLA for additional expansion.

Edwards Multiplex – Ontario

Los Angeles, CA

Potential redevelopment of existing Regal Theatre.

Glendale Town Center

Indianapolis, IN

Potential of 200 multifamily units for additional expansion.

(1)Projected completion date represents the earlier of one year after completion of project construction or substantial occupancy of the property.

(2)Total project costs and KRG equity requirement for Carillon MOB represent costs to KRG post-merger and exclude any costs spent to date prior to the merger with RPAI.

(3)Estimated remaining NOI to come online excludes in-place NOI and NOI related to tenants that have signed leases but have not yet commenced paying rent.

(4)The Company does not have any equity requirements related to this development. Total project costs are at KRG’s share and are net of KRG’s share of a $13.5 million TIF.

(5)These opportunities are deemed potential at this time and are subject to various contingencies, many of which could be beyond the Company’s control.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			13

Kite Realty Group Trust

Geographic Diversification – Retail ABR by Region and State as of June 30, 2024

(dollars in thousands)


Region/State	Number of Properties(1)	Owned GLA/NRA(2)	Total Weighted Retail ABR(3)		% of Weighted Retail ABR(3)
South
Texas	44	7,493	$	155,718	26.8	%
Florida	30	3,511	68,455		11.8	%
Maryland	8	1,411	34,360		5.9	%
North Carolina	8	1,535	33,309		5.8	%
Virginia	7	1,130	31,753		5.5	%
Georgia	10	1,707	26,841		4.6	%
Tennessee	3	580	8,889		1.5	%
Oklahoma	3	505	8,276		1.4	%
South Carolina	2	262	3,559		0.6	%
Total South	115	18,134	371,160		63.9	%

West
Washington	10	1,656	30,996		5.3	%
Nevada	5	846	28,171		4.9	%
Arizona	5	715	16,234		2.8	%
California	2	530	12,944		2.2	%
Utah	2	388	8,222		1.4	%
Total West	24	4,135	96,567		16.6	%

Midwest
Indiana	15	1,624	31,677		5.5	%
Illinois	7	1,059	21,951		3.8	%
Michigan	1	308	6,676		1.1	%
Missouri	1	453	4,053		0.7	%
Ohio	1	236	2,152		0.4	%
Total Midwest	25	3,680	66,509		11.5	%

Northeast
New York	7	713	25,459		4.4	%
New Jersey	4	340	11,302		1.9	%
Massachusetts	1	264	4,169		0.7	%
Connecticut	1	206	3,841		0.7	%
Pennsylvania	1	136	1,982		0.3	%
Total Northeast	14	1,659	46,753		8.0	%

Total(4)	178	27,608	$	580,989	100.0	%

(1)Number of properties represents consolidated and unconsolidated retail properties.

(2)Owned GLA/NRA represents gross leasable area owned by the Company and excludes the square footage of development and redevelopment projects.

(3)Total weighted retail ABR and percent of weighted retail ABR includes ground lease rent and represents the Company’s share of the ABR at consolidated and unconsolidated properties.

(4)Excludes one operating retail property classified as held for sale as of June 30, 2024.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			14

Kite Realty Group Trust

Top 25 Tenants by ABR as of June 30, 2024

(dollars in thousands, except per square foot data)

The following table includes the Company’s retail operating properties.


									Credit Ratings
	Tenant	Primary DBA/ Number of Stores	Number of Stores(1)	Total Leased GLA/NRA(2)	ABR(3)		% of Weighted ABR(4)		S&P	Moody’s

1	The TJX Companies, Inc.	T.J. Maxx (18), Marshalls (12), HomeGoods (11), Homesense (4), T.J. Maxx & HomeGoods combined (2), Sierra (2)	49	1,428	$	16,296	2.8	%	A	A2

2	Best Buy Co., Inc.	Best Buy (15), Pacific Sales (1)	16	633	11,447		2.0	%	BBB+	A3

3	Ross Stores, Inc.	Ross Dress for Less (32), dd’s DISCOUNTS (1)	33	937	11,333		2.0	%	BBB+	A2

4	PetSmart, Inc.		32	657	10,968		1.9	%	B+	B1

5	Michaels Stores, Inc.	Michaels	28	631	8,346		1.4	%	N/A	N/A

6	Gap Inc.	Old Navy (25), The Gap (3), Athleta (3), Banana Republic (2)	33	448	8,034		1.4	%	BB	Ba3

7	Dick’s Sporting Goods, Inc.	Dick’s Sporting Goods (12), Golf Galaxy (1)	13	625	7,956		1.4	%	BBB	Baa3

8	Publix Super Markets, Inc.		14	672	6,935		1.2	%	N/A	N/A

9	Total Wine & More		15	355	6,151		1.1	%	N/A	N/A

10	Ulta Beauty, Inc.		27	276	6,082		1.0	%	N/A	N/A

11	The Kroger Co.	Kroger (6), Harris Teeter (2), QFC (1), Smith’s (1)	10	355	6,041		1.0	%	BBB	Baa1

12	Lowe’s Companies, Inc.		6	—	5,838		1.0	%	BBB+	Baa1

13	BJ’s Wholesale Club, Inc.		3	115	5,514		1.0	%	BB+	N/A

14	Five Below, Inc.		31	281	5,510		0.9	%	N/A	N/A

15	Nordstrom, Inc.	Nordstrom Rack	9	272	4,992		0.9	%	BB+	Ba2

16	Kohl’s Corporation		7	265	4,980		0.9	%	BB	Ba2

17	Petco Health and Wellness Company, Inc.		18	261	4,886		0.8	%	B	B3

18	The Container Store Group, Inc.		7	151	4,685		0.8	%	CCC+	N/A

19	Designer Brands Inc.	DSW Designer Shoe Warehouse	16	314	4,614		0.8	%	N/A	N/A

20	KnitWell Group	Chico’s (7), Talbots (7), LOFT (5), Soma (4), Ann Taylor (4), White House Black Market (4)	31	134	4,546		0.8	%	N/A	N/A

21	Burlington Stores, Inc.		10	459	4,412		0.8	%	BB+	N/A

22	Mattress Firm Group Inc.	Mattress Firm (26), Sleepy’s (4)	30	148	4,341		0.7	%	B+	B1

23	Office Depot, Inc.	Office Depot (11), OfficeMax (3)	14	308	4,335		0.7	%	N/A	N/A

24	Fitness International, LLC	LA Fitness	5	196	4,256		0.7	%	B	B2

25	Albertsons Companies, Inc.	Safeway (3), Jewel-Osco (2), Tom Thumb (2)	6	281	4,198		0.7	%	BB+	Ba2
	Total Top Tenants		463	10,202	$	166,696	28.7	%

(1)Number of stores represents stores at consolidated and unconsolidated properties.

(2)Total leased GLA/NRA excludes the square footage of structures located on land owned by the Company and ground-leased to tenants.

(3)ABR represents the monthly contractual rent for June 30, 2024, for each applicable tenant multiplied by 12 and does not include tenant reimbursements. ABR represents 100% of the ABR at consolidated properties and the Company’s share of the ABR at unconsolidated properties including ground lease rent.

(4)Percent of weighted ABR includes ground lease rent and represents the Company’s share of the ABR at consolidated and unconsolidated properties.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			15

Kite Realty Group Trust

Retail Leasing Spreads


			Comparable Space(1)(2)
Category	Total Leases(1)	Total Sq. Ft.(1)	Leases	Sq. Ft.	Prior Rent PSF(3)		New Rent PSF(4)		Cash Rent Spread		TI, LL Work, Lease Commissions PSF(5)

New Leases – Q2 2024	55	372,155	40	219,622	$	18.39	$	24.79	34.8	%
New Leases – Q1 2024	38	175,087	19	115,295	17.09		25.31		48.1	%
New Leases – Q4 2023	55	380,851	28	243,714	14.59		20.87		43.0	%
New Leases – Q3 2023	67	226,593	33	119,327	23.48		31.92		36.0	%
Total	215	1,154,686	120	697,958	$	17.72	$	24.73	39.6	%	$	78.48

Non-Option Renewals – Q2 2024	69	314,899	60	216,422	$	22.17	$	25.34	14.3	%
Non-Option Renewals – Q1 2024	93	330,966	57	174,284	25.45		28.57		12.2	%
Non-Option Renewals – Q4 2023	78	336,283	60	275,310	23.56		25.74		9.2	%
Non-Option Renewals – Q3 2023	83	329,048	68	184,884	29.22		34.41		17.8	%
Total	323	1,311,196	245	850,900	$	24.82	$	28.10	13.2	%	$	4.10

Option Renewals – Q2 2024	36	466,712	36	466,712	$	15.94	$	16.90	6.0	%
Option Renewals – Q1 2024	54	462,628	54	462,628	19.23		20.25		5.3	%
Option Renewals – Q4 2023	59	572,956	59	572,956	17.07		18.36		7.6	%
Option Renewals – Q3 2023	64	843,054	64	843,054	15.95		17.27		8.3	%
Total	213	2,345,350	213	2,345,350	$	16.87	$	18.05	7.0	%	$	—

Total – Q2 2024	160	1,153,766	136	902,756	$	18.03	$	20.84	15.6	%
Total – Q1 2024	185	968,681	130	752,207	20.34		22.95		12.8	%
Total – Q4 2023	192	1,290,090	147	1,091,980	18.15		20.78		14.5	%
Total – Q3 2023	214	1,398,695	165	1,147,265	18.87		21.56		14.2	%
Total	751	4,811,232	578	3,894,208	$	18.76	$	21.44	14.3	%	$	14.96

(1)Excludes office and ground leases. Comparable space leases on this table are included for second generation retail spaces. Comparable leases represent those leases for which there was a former tenant within the last 12 months.

(2)Comparable renewals exclude leases with terms 24 months or shorter.

(3)Prior rent represents minimum rent, if any, paid by the prior tenant in the final 12 months of the term. All amounts reported at lease execution.

(4)Contractual rent represents contractual minimum rent per square foot for the first 12 months of the lease.

(5)Includes redevelopment costs for tenant-specific landlord work and tenant allowances provided to tenants.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			16

Kite Realty Group Trust

Lease Expirations as of June 30, 2024

(dollars in thousands, except per square foot data)

The following table includes the Company’s operating retail properties as of June 30, 2024.


Retail Operating Portfolio
		Expiring Retail GLA(2)								Expiring ABR per Sq. Ft.(3)
	Number of Expiring Leases(1)	Shop Tenants	Anchor Tenants	Expiring ABR (Pro rata)		Expiring Ground Lease ABR (Pro rata)		% of Total ABR (Pro rata)		Shop Tenants		Anchor Tenants		Total

2024	243	572,369	241,419	$	21,697	$	336	3.8	%	$	32.60	$	13.07	$	26.80
2025	478	1,128,090	2,208,682	62,361		4,504		11.5	%	31.10		12.73		18.94
2026	490	1,071,129	2,271,580	65,139		4,615		12.0	%	31.38		14.23		19.73
2027	533	1,194,965	2,326,375	70,551		5,587		13.1	%	32.28		13.91		20.15
2028	553	1,209,579	2,784,481	84,335		6,678		15.7	%	35.48		14.89		21.13
2029	490	1,080,247	2,967,018	80,079		3,542		14.4	%	35.00		15.10		20.41
2030	208	572,649	844,137	30,039		1,644		5.5	%	31.23		14.58		21.31
2031	161	433,888	555,578	23,056		2,107		4.3	%	33.46		15.55		23.40
2032	169	423,444	1,038,118	28,120		328		4.9	%	32.12		14.41		19.54
2033	192	501,088	706,197	28,695		3,878		5.6	%	34.97		15.88		23.80
Beyond	257	537,172	1,491,508	47,261		6,436		9.2	%	37.54		18.20		23.32
	3,774	8,724,620	17,435,093	$	541,333	$	39,655	100.0	%	$	33.28	$	14.71	$	20.90

(1)Lease expirations table reflects rents in place as of June 30, 2024 and does not include option periods; 2024 expirations include 56 month-to-month retail tenants. This column also excludes ground leases.

(2)Expiring GLA excludes the square footage of structures located on land owned by the Company and ground-leased to tenants.

(3)ABR represents the monthly contractual rent as of June 30, 2024 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			17

Kite Realty Group Trust

Components of Net Asset Value as of June 30, 2024

(dollars in thousands)


Cash Net Operating Income (“NOI”)			Page	Other Assets(1)			Page

GAAP property NOI (incl. ground lease revenue)	$	153,925	6	Cash, cash equivalents, and restricted cash	$	158,770	3
Non-cash revenue adjustments	(6,041)			Short-term deposits	120,000		3
Other property-related revenue	(2,701)		6	Tenant and other receivables (net of SLR)	57,977		3
Ground lease (“GL”) revenue	(10,492)		6	Prepaid and other assets	114,159		3
Consolidated Cash Property NOI (excl. GL)	$	134,691

Annualized Consolidated Cash Property NOI (excl. ground leases)	$	538,764

Adjustments to Normalize Annualized Cash NOI				Liabilities

Remaining NOI to come online from development and redevelopment projects(2)	$	3,050	13	Mortgage and other indebtedness, net	$	(3,000,761)	10
Unconsolidated Adjusted EBITDA	2,444		8	Pro rata adjustment for joint venture debt	(46,934)		8
General and administrative expense allocable to property management activities included in property expenses ($4.3 million in Q2)	17,200		6, note 3	Accounts payable and accrued expenses	(189,688)		3
Total Adjustments	22,694			Other liabilities	(250,103)		3
				Projected remaining under construction development/redevelopment(3)	(26,600)		13
Annualized Normalized Portfolio Cash NOI (excl. ground leases)	$	561,458
Annualized ground lease NOI	41,968
Total Annualized Portfolio Cash NOI(4)	$	603,426		Common shares and Units outstanding	223,361,957

(1)Excludes construction in progress and entitled land held for development.

(2)Excludes the projected cash NOI and related cost from the future opportunities outlined on page 13.

(3)Remaining costs on page 13 for development projects.

(4)The above components of net asset value exclude NOI related to tenants that have signed leases but have not yet commenced paying rent as of June 30, 2024.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			18

Kite Realty Group Trust

Non-GAAP Financial Measures

Funds from Operations

Adjusted Funds from Operations

Adjusted Funds From Operations (“AFFO”) is a non-GAAP financial measure of operating performance used by many companies in the real estate industry. AFFO modifies FFO for certain cash and non-cash transactions that are not included in FFO. AFFO should not be considered an alternative to net income as an indicator of the Company’s performance or as an alternative to cash flow as a measure of liquidity or the Company’s ability to make distributions. Management considers AFFO a useful supplemental measure of the Company’s performance. The Company’s computation of AFFO may differ from the methodology for calculating AFFO used by other REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net income (calculated in accordance with GAAP) to AFFO is included elsewhere in this Financial Supplement.

Net Operating Income, Cash Net Operating Income and Same Property Net Operating Income

The Company uses property net operating income (“NOI”) and cash NOI, which are non-GAAP financial measures, to evaluate the performance of our properties. The Company defines NOI and cash NOI as income from our real estate, including lease termination fees received from tenants, less our property operating expenses. NOI and cash NOI exclude amortization of capitalized tenant improvement costs and leasing commissions and certain corporate level expenses, including merger and acquisition costs. Cash NOI also excludes other property-related revenue as that activity is recurring but unpredictable in its occurrence, straight-line rent adjustments, and amortization of in-place lease liabilities, net. The Company believes that NOI and cash NOI are helpful to investors as measures of our operating performance because they exclude various items included in net income that do not relate to or are not indicative of our operating performance, such as depreciation and amortization, interest expense, and impairment, if any.

The Company also uses same property NOI (“Same Property NOI”), a non-GAAP financial measure, to evaluate the performance of our properties. Same Property NOI is net income excluding properties that have not been owned for the full periods presented. Same Property NOI also excludes (i) net gains from outlot sales, (ii) straight-line rent revenue, (iii) lease termination income in excess of lost rent, (iv) amortization of lease intangibles, and (v) significant prior period expense recoveries and adjustments, if any. When the Company receives payments in excess of any accounts receivable for terminating a lease, Same Property NOI will include such excess payments as monthly rent until the earlier of the expiration of 12 months or the start date of a replacement tenant.


2nd Quarter 2024 Supplemental Financial and Operating Statistics			19

Kite Realty Group Trust

Non-GAAP Financial Measures (continued)

Net Operating Income and Same Property Net Operating Income (continued)

The Company believes that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full periods presented. The Company believes such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular periods presented and thus provides a more consistent metric for the comparison of our properties. Same Property NOI includes the results of properties that have been owned for the entire current and prior year reporting periods.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Net Debt to Adjusted EBITDA


2nd Quarter 2024 Supplemental Financial and Operating Statistics			20