Kite Realty Group Trust (NYSE:KRG) (the “Company”) announced today
its operating results for the second quarter ended June 30, 2017.
Financial statements, exhibits, and reconciliations of non-GAAP
measures attached to this release include the details of the
Company’s results.
Second Quarter Highlights
- Net income attributable to common shareholders was $10.2
million, or $0.12 per diluted common share.
- Funds From Operations of the Operating Partnership (“FFO”), as
defined by NAREIT, was $46.2 million, or $0.54 per diluted
share.
- Same-property Net Operating Income (“NOI”) increased 3.2% for
the comparable operating portfolio, or 3.8% excluding the impact of
the Company’s Redevelopment, Repurpose and Reposition (“3-R”)
initiative, in each case compared to the same period in the prior
year.
- Small shop leased percentage increased 90 basis points to 89.2%
from the same period in the prior year.
- The aggregate cash rent spread on comparable new and renewal
leases was 9.8%.
- Three operating properties were sold, generating gross proceeds
of $54.6 million and year-to-date gross proceeds of $77.7
million.
- Three of the Company’s 3-R projects were completed during the
second quarter with costs totaling $6.2 million and a projected
combined annualized return of 19.5%.
- The development at Parkside Town Commons, Phase II, was
transitioned to the operating portfolio during the quarter at 95.4%
leased.
“We are now half way through 2017, and
we continue to excel from an operational perspective,” said John
Kite, Chief Executive Officer. “During the second quarter, we
maintained our leasing momentum and further progressed in our
efforts to diversify our tenant base. As an example, the vast
majority of the 42 tenants we opened last quarter either provide
services, are restaurants, or otherwise operate experiential
businesses. Our small-shop leasing rate now stands at 89.2% - just
shy of our stated 90% goal. Overall, I’m very happy with our
performance this quarter and am optimistic that we will keep making
progress towards our strategic
goals.”
Financial & Portfolio
Results
Financial Results
Net income attributable to common shareholders
for the three months ended June 30, 2017, was $10.2 million,
compared to a net loss of $1.9 million for the same period in 2016.
Second quarter 2017 results include a $4.9 million gain in other
property related revenue from the sale of an outlot and a $6.3
million gain from the sale of Village Walk, Clay Marketplace, and
Wheatland Towne Crossing from the operating portfolio.
For the three months ended June 30, 2017, FFO,
as defined by NAREIT, was $46.2 million, or $0.54 per diluted
share, compared to $41.4 million, or $0.48 per diluted share, for
the same period in the prior year. For the three months ended
June 30, 2017, FFO, as adjusted, was $46.2 million, or $0.54 per
diluted share, compared to $44.2 million, or $0.52 per diluted
share, for the same period in the prior year.
Portfolio Operations
As of June 30, 2017, the Company owned interests
in 117 operating and redevelopment properties totaling
approximately 23.1 million square feet and one development project
currently under construction. The owned gross leasable area in the
Company’s retail operating portfolio was 94.5% leased as of June
30, 2017, and the Company’s overall portfolio was 94.6% leased. We
continue to increase our small-shop leased percentage, and hit a
new high of 89.2% leased in the second quarter, up from 88.6% in
the prior quarter.
Same-property NOI, which includes 102 operating
properties, increased 3.2% in the second quarter compared to the
same period in the prior year, or 3.8% excluding the impact of the
Company’s 3-R initiative. The leased percentage of properties
included in the same-property pool was 94.3% at June 30, 2017,
compared to 95.1% at June 30, 2016, while the economic occupancy
percentage increased to 93.8% from 92.7% year over year.
The Company executed 96 leases totaling 624,317
square feet during the second quarter of 2017, including 68
comparable new and renewal leases for 531,931 square feet. Cash
rent spreads on comparable new and renewal leases executed in the
quarter were approximately 17.4% and 8.0%, respectively, for a
blended cash rent spread of 9.8%. The renewal lease spread includes
one large anchor renewal totaling 107,400 square feet that was
renewed at a flat rental rate. Excluding this lease, the cash
renewal spread was 8.8% and the blended cash rent spread was 10.6%.
The blended leasing spread on a straight-line basis, which includes
periodic rent increases over the term of the lease, was 13.9%.
Capital Recycling
In line with our capital recycling initiatives
to increase the quality of the portfolio and to strengthen the
balance sheet, we completed the sale of three operating properties
during the second quarter: Village Walk in Fort Myers, Florida,
Clay Marketplace in Birmingham, Alabama, and Wheatland Towne
Crossing in Dallas, Texas. The disposition of these assets resulted
in gross proceeds of approximately $54.6 million, which were used
to pay down the Company’s revolving line of credit. We have
exceeded our disposition guidance with $77.7 million of gross
proceeds through June 30, 2017.
Balance Sheet
As we continue our focus on strengthening our
balance sheet, we have reduced our Net Debt to EBITDA from the
first quarter of 2017 from 6.9x to 6.77x. We currently have only
$83.1 million of term maturities through 2020, and our debt
portfolio has a weighted average maturity of 6.0 years.
Development and
Redevelopment
As of June 30, 2017, we have one development
project under construction. Holly Springs, Phase II, is 100%
pre-leased or committed with projected costs of $2.7 million.
Parkside Town Commons, Phase II, was transitioned to our operating
portfolio at 95.4% leased. The overall center is anchored by
Target, Harris Teeter, Hobby Lobby, Frank CineBowl & Grille,
Golf Galaxy, Stein Mart, Panera Bread, and Chuy’s. We completed
construction on three 3-R projects during the second quarter:
Centennial Gateway (Las Vegas, NV), Market Street Village (Fort
Worth, TX) and Northdale Promenade (Tampa, FL). The Company
invested $6.2 million for a projected annualized return of
19.5%.
The Company’s 3-R program currently includes
seven projects under various stages of construction with estimated
costs ranging from $68.5 to $74.0 million and an estimated combined
annualized return ranging from 8.0% to 9.0%. During the second
quarter, the Company commenced construction on one new project at
Rampart Commons (Las Vegas, NV). The Rampart project will be
anchored by an exciting tenant line-up including Williams Sonoma,
Pottery Barn, Ann Taylor, Flower Child, North Italia, and P.F.
Chang’s.
2017 Earnings Guidance
The Company is updating its guidance for 2017
FFO, as defined by NAREIT, to a range of $2.01 to $2.05 from $2.00
to $2.06 per diluted share. Please refer to the full list of
guidance assumptions on page 38 of the Company’s second quarter
supplemental.
Guidance Range
For Full Year 2017 |
Low |
|
High |
Consolidated net income
per diluted common share
|
$ |
0.18 |
|
|
$ |
0.22 |
|
Add: Depreciation,
amortization and other |
1.92 |
|
|
1.92 |
|
Less: Gain on sale of
operating property |
(0.18 |
) |
|
(0.18 |
) |
Add: Impairment of
operating property |
0.09 |
|
|
0.09 |
|
FFO, as defined
by NAREIT, per diluted share |
$ |
2.01 |
|
|
$ |
2.05 |
|
Earnings Conference Call
The Company will conduct a conference call to
discuss its financial results on Thursday, July 27, 2017, at 1:00
p.m. Eastern Time. A live webcast of the conference call will
be available online on the Company’s corporate website at
www.kiterealty.com. The dial-in numbers are (844) 309-0605
for domestic callers and (574) 990-9933 for international callers
(passcode 43719480). In addition, a webcast replay link will
be available on the corporate website.
About Kite Realty Group
Trust
Kite Realty Group Trust is a full-service,
vertically integrated real estate investment trust (REIT) engaged
primarily in the ownership and operation, acquisition, development
and redevelopment of high-quality neighborhood and community
shopping centers in select markets in the United States. As of June
30, 2017, we owned interests in 117 operating and redevelopment
properties totaling approximately 23.1 million square feet and one
development project currently under construction.
Our strategy is to maximize the cash flow of our
operating properties, successfully complete the construction and
lease-up of our redevelopment and development portfolio, and
identify additional opportunities to acquire or dispose of
properties to further strengthen the Company. New investments are
focused in the shopping center sector primarily in markets where we
believe we can leverage our existing infrastructure and
relationships to generate attractive risk-adjusted returns or
otherwise in desirable trade areas. Dispositions are generally
designed to increase the quality of our portfolio and to strengthen
the Company’s balance sheet.
Safe Harbor
Certain statements in this document that are not
historical fact may constitute forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 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: national and
local economic, business, real estate and other market conditions,
particularly in light of low growth in the U.S. economy as well as
economic uncertainty caused by fluctuations in the prices of oil
and other energy sources; 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, its indebtedness; the level and volatility of interest rates;
the financial stability of tenants, including their ability to pay
rent and the risk of tenant bankruptcies; the competitive
environment in which the Company operates; acquisition,
disposition, development and joint venture risks; property
ownership and management risks; the Company’s ability to maintain
its status as a real estate investment trust for federal income tax
purposes; potential environmental and other liabilities; impairment
in the value of real estate property the Company owns; the impact
of online retail and the perception that such retail has on the
value of shopping center assets; risks related to the geographical
concentration of the Company’s properties in Florida, Indiana and
Texas; insurance costs and coverage; risks associated with
cybersecurity attacks and the loss of confidential information and
other business interruptions; and other factors affecting the real
estate industry generally. The Company refers you to the documents
filed by the Company from time to time with the SEC, specifically
the section titled “Risk Factors” in the Company’s and the
Operating Partnership’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2016, which discuss these and other factors
that could adversely affect the Company’s results. 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.
Kite Realty Group Trust |
Consolidated Balance Sheets |
(Unaudited) |
|
($ in
thousands) |
|
|
|
|
|
|
June 30, 2017 |
|
December 31, 2016 |
Assets: |
|
|
|
|
Investment properties,
at cost |
|
$ |
3,939,999 |
|
|
$ |
3,996,065 |
|
Less:
accumulated depreciation |
|
(608,233 |
) |
|
(560,683 |
) |
|
|
3,331,766 |
|
|
3,435,382 |
|
|
|
|
|
|
Cash and cash
equivalents |
|
27,635 |
|
|
19,874 |
|
Tenant and other
receivables, including accrued straight-line rent of $29,818 and
$28,703 respectively, net of allowance for uncollectible
accounts |
|
52,270 |
|
|
53,087 |
|
Restricted cash and
escrow deposits |
|
8,717 |
|
|
9,037 |
|
Deferred costs and
intangibles, net |
|
119,699 |
|
|
129,264 |
|
Prepaid and other
assets |
|
10,188 |
|
|
9,727 |
|
Total
Assets |
|
$ |
3,550,275 |
|
|
$ |
3,656,371 |
|
Liabilities and
Shareholders’ Equity: |
|
|
|
|
Mortgage and other
indebtedness, net |
|
$ |
1,675,064 |
|
|
$ |
1,731,074 |
|
Accounts payable and
accrued expenses |
|
88,482 |
|
|
80,664 |
|
Deferred revenue and
other liabilities |
|
103,302 |
|
|
112,202 |
|
Total
Liabilities |
|
1,866,848 |
|
|
1,923,940 |
|
Commitments and
contingencies |
|
|
|
|
Limited Partners’
interests in the Operating Partnership and other redeemable
noncontrolling interests |
|
73,051 |
|
|
88,165 |
|
Shareholders’
Equity: |
|
|
|
|
Kite Realty Group Trust Shareholders’ Equity: |
|
|
|
|
Common
Shares, $.01 par value, 225,000,000 shares authorized, 83,595,490
and 83,545,398 shares issued and outstanding at June 30, 2017 and
December 31, 2016, respectively |
|
836 |
|
|
835 |
|
Additional paid in capital |
|
2,067,795 |
|
|
2,062,360 |
|
Accumulated other comprehensive loss |
|
736 |
|
|
(316 |
) |
Accumulated deficit |
|
(459,689 |
) |
|
(419,305 |
) |
Total Kite Realty Group Trust Shareholders’
Equity |
|
1,609,678 |
|
|
1,643,574 |
|
Noncontrolling
Interests |
|
698 |
|
|
692 |
|
Total
Equity |
|
1,610,376 |
|
|
1,644,266 |
|
Total
Liabilities and Shareholders' Equity |
|
$ |
3,550,275 |
|
|
$ |
3,656,371 |
|
Kite Realty Group Trust |
Consolidated Statements of
Operations |
For the Three and Six Months Ended June 30,
2017 and 2016 |
(Unaudited) |
|
($ in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue: |
|
|
|
|
|
|
|
|
Minimum rent |
|
$ |
68,395 |
|
|
$ |
68,455 |
|
|
$ |
137,341 |
|
|
$ |
135,918 |
|
Tenant reimbursements |
|
18,521 |
|
|
17,006 |
|
|
37,091 |
|
|
35,161 |
|
Other property related revenue |
|
5,733 |
|
|
2,114 |
|
|
8,330 |
|
|
5,046 |
|
Total
revenue |
|
92,649 |
|
|
87,575 |
|
|
182,762 |
|
|
176,125 |
|
Expenses: |
|
|
|
|
|
|
|
|
Property operating |
|
12,139 |
|
|
11,346 |
|
|
25,091 |
|
|
23,538 |
|
Real estate taxes |
|
11,228 |
|
|
10,503 |
|
|
21,559 |
|
|
21,637 |
|
General, administrative, and other |
|
5,488 |
|
|
4,856 |
|
|
10,958 |
|
|
10,147 |
|
Transaction costs |
|
— |
|
|
2,771 |
|
|
— |
|
|
2,771 |
|
Impairment charge |
|
— |
|
|
— |
|
|
7,411 |
|
|
— |
|
Depreciation and amortization |
|
42,710 |
|
|
43,841 |
|
|
88,540 |
|
|
86,082 |
|
Total
expenses |
|
71,565 |
|
|
73,317 |
|
|
153,559 |
|
|
144,175 |
|
Operating
income |
|
21,084 |
|
|
14,258 |
|
|
29,203 |
|
|
31,950 |
|
Interest expense |
|
(16,433 |
) |
|
(15,500 |
) |
|
(32,878 |
) |
|
(30,825 |
) |
Income tax (expense) benefit of taxable REIT subsidiary |
|
(3 |
) |
|
(338 |
) |
|
30 |
|
|
(748 |
) |
Other expense, net |
|
(80 |
) |
|
(110 |
) |
|
(219 |
) |
|
(94 |
) |
Income (loss)
from continuing operations |
|
4,568 |
|
|
(1,690 |
) |
|
(3,864 |
) |
|
283 |
|
Gains on sales of operating properties |
|
6,290 |
|
|
194 |
|
|
15,160 |
|
|
194 |
|
Net income
(loss) |
|
10,858 |
|
|
(1,496 |
) |
|
11,296 |
|
|
477 |
|
Net income attributable to noncontrolling interests |
|
(678 |
) |
|
(399 |
) |
|
(1,110 |
) |
|
(971 |
) |
Net income
(loss) attributable to Kite Realty Group Trust common
shareholders |
|
$ |
10,180 |
|
|
$ |
(1,895 |
) |
|
$ |
10,186 |
|
|
$ |
(494 |
) |
|
|
|
|
|
|
|
|
|
Income (loss)
per common share - basic |
|
$ |
0.12 |
|
|
(0.02 |
) |
|
0.12 |
|
|
(0.01 |
) |
Income (loss)
per common share - diluted |
|
$ |
0.12 |
|
|
$ |
(0.02 |
) |
|
$ |
0.12 |
|
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic |
|
83,585,736 |
|
|
83,375,765 |
|
|
83,575,587 |
|
|
83,362,136 |
|
Weighted average common
shares outstanding - diluted |
|
83,652,627 |
|
|
83,375,765 |
|
|
83,640,327 |
|
|
83,362,136 |
|
Cash dividends
declared per common share |
|
$ |
0.3025 |
|
|
$ |
0.2875 |
|
|
$ |
0.6050 |
|
|
$ |
0.5750 |
|
|
|
|
|
|
|
|
|
|
Kite Realty Group Trust |
Funds From Operations |
For the Three and Six Months Ended June 30,
2017 and 2016 |
(Unaudited) |
|
($ in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Funds From
Operations |
|
|
|
|
|
|
|
|
Consolidated net income
/ (loss) |
|
$ |
10,858 |
|
|
$ |
(1,496 |
) |
|
$ |
11,296 |
|
|
$ |
477 |
|
Less: net income
attributable to noncontrolling interests in properties |
|
(438 |
) |
|
(461 |
) |
|
(870 |
) |
|
(922 |
) |
Less: gains on sales of
operating properties |
|
(6,290 |
) |
|
(194 |
) |
|
(15,160 |
) |
|
(194 |
) |
Add: impairment
charge |
|
— |
|
|
— |
|
|
7,411 |
|
|
— |
|
Add: depreciation and
amortization of consolidated entities, net of noncontrolling
interests |
|
42,050 |
|
|
43,545 |
|
|
87,416 |
|
|
85,599 |
|
FFO of
the Operating Partnership1 |
|
46,180 |
|
|
41,394 |
|
|
90,093 |
|
|
84,960 |
|
Less: Limited Partners'
interests in FFO |
|
(1,056 |
) |
|
(809 |
) |
|
(2,045 |
) |
|
(1,790 |
) |
FFO
attributable to Kite Realty Group Trust common shareholders1 |
|
$ |
45,124 |
|
|
$ |
40,585 |
|
|
$ |
88,048 |
|
|
$ |
83,170 |
|
FFO, as defined by
NAREIT, per share of the Operating Partnership - basic |
|
$ |
0.54 |
|
|
$ |
0.49 |
|
|
$ |
1.05 |
|
|
$ |
1.00 |
|
FFO, as defined by
NAREIT, per share of the Operating Partnership - diluted |
|
$ |
0.54 |
|
|
$ |
0.48 |
|
|
$ |
1.05 |
|
|
$ |
0.99 |
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership1 |
|
$ |
46,180 |
|
|
$ |
41,394 |
|
|
$ |
90,093 |
|
|
$ |
84,960 |
|
Add: transaction
costs |
|
— |
|
|
2,771 |
|
|
— |
|
|
2,771 |
|
Add: severance
charge |
|
— |
|
|
— |
|
|
— |
|
|
500 |
|
FFO, as adjusted, of
the Operating Partnership |
|
$ |
46,180 |
|
|
$ |
44,165 |
|
|
$ |
90,093 |
|
|
$ |
88,231 |
|
FFO, as adjusted, per
share of the Operating Partnership - basic |
|
$ |
0.54 |
|
|
$ |
0.52 |
|
|
$ |
1.05 |
|
|
$ |
1.03 |
|
FFO, as adjusted, per
share of the Operating Partnership - diluted |
|
$ |
0.54 |
|
|
$ |
0.52 |
|
|
$ |
1.05 |
|
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic |
|
83,585,736 |
|
|
83,375,765 |
|
|
83,575,587 |
|
|
83,362,136 |
|
Weighted average common
shares outstanding - diluted |
|
83,652,627 |
|
|
83,475,474 |
|
|
83,640,327 |
|
|
83,460,521 |
|
Weighted average common
shares and units outstanding - basic |
|
85,572,566 |
|
|
85,320,923 |
|
|
85,551,356 |
|
|
85,295,968 |
|
Weighted average common
shares and units outstanding - diluted |
|
85,639,457 |
|
|
85,420,633 |
|
|
85,616,096 |
|
|
85,394,353 |
|
|
|
|
|
|
|
|
|
|
FFO, as defined by
NAREIT, per diluted share |
|
|
|
|
|
|
|
|
Consolidated net
income |
|
$ |
0.13 |
|
|
$ |
(0.02 |
) |
|
$ |
0.13 |
|
|
$ |
0.01 |
|
Less: net income
attributable to noncontrolling interests in properties |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
Less: gains on sales of
operating properties |
|
(0.07 |
) |
|
— |
|
|
(0.17 |
) |
|
— |
|
Add: impairment
charge |
|
— |
|
|
— |
|
|
0.08 |
|
|
— |
|
Add: depreciation and
amortization of consolidated entities, net of noncontrolling
interests |
|
0.49 |
|
|
0.51 |
|
|
1.02 |
|
|
1.00 |
|
FFO, as defined by
NAREIT, of the Operating Partnership per diluted share1 |
|
$ |
0.54 |
|
|
$ |
0.48 |
|
|
$ |
1.05 |
|
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
Add: transaction
costs |
|
— |
|
|
0.04 |
|
|
— |
|
|
0.03 |
|
Add: severance
charge |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
FFO, as adjusted, of
the Operating Partnership per diluted share |
|
$ |
0.54 |
|
|
$ |
0.52 |
|
|
$ |
1.05 |
|
|
$ |
1.03 |
|
____________________ |
1 |
|
“FFO of the Operating
Partnership" measures 100% of the operating performance of the
Operating Partnership’s real estate properties. “FFO attributable
to Kite Realty Group Trust common shareholders” reflects a
reduction for the redeemable noncontrolling weighted average
diluted interest in the Operating Partnership. |
|
|
|
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"). The NAREIT
white paper defines FFO as net income (determined in accordance
with GAAP), excluding gains (or losses) from sales and impairments
of depreciated property, plus depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint
ventures. |
|
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. For informational purposes, the Company has also
provided FFO adjusted for transaction costs and a severance charge
in 2016. The Company believes this supplemental information
provides a meaningful measure of our operating performance. The
Company believes our presentation of FFO, as adjusted, provides
investors with another financial measure that may facilitate
comparison of operating performance between periods and among our
peer companies. FFO should not be considered as an alternative to
net income (determined in accordance with GAAP) as an indicator of
our financial performance, is not an alternative to cash flow from
operating activities (determined in accordance with GAAP) as a
measure of our liquidity, and is not indicative of funds available
to satisfy our cash needs, including our ability to make
distributions. Our 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. |
Kite Realty Group Trust |
Same Property Net Operating
Income |
For the Three and Six Months Ended June 30,
2017 and 2016 |
(Unaudited) |
|
($ in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
2016 |
|
% Change |
|
2017 |
|
2016 |
|
% Change |
Number of properties
for the quarter1 |
|
102 |
|
102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased
percentage at period end |
|
94.3 |
% |
|
95.1 |
% |
|
|
|
94.3 |
% |
|
95.1 |
% |
|
|
Economic
Occupancy percentage2 |
|
93.8 |
% |
|
92.7 |
% |
|
|
|
93.9 |
% |
|
93.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minimum rent |
|
$ |
58,028 |
|
|
$ |
56,358 |
|
|
|
|
$ |
116,809 |
|
|
$ |
113,716 |
|
|
|
Tenant recoveries |
|
16,233 |
|
|
15,231 |
|
|
|
|
33,059 |
|
|
31,640 |
|
|
|
Other income |
|
168 |
|
|
121 |
|
|
|
|
453 |
|
|
264 |
|
|
|
|
|
74,429 |
|
|
71,710 |
|
|
|
|
150,321 |
|
|
145,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating
expenses |
|
(9,992 |
) |
|
(9,547 |
) |
|
|
|
(19,747 |
) |
|
(18,914 |
) |
|
|
Real estate taxes |
|
(9,945 |
) |
|
(9,381 |
) |
|
|
|
(19,987 |
) |
|
(19,509 |
) |
|
|
|
|
(19,937 |
) |
|
(18,928 |
) |
|
|
|
(39,734 |
) |
|
(38,423 |
) |
|
|
Same Property
NOI3 |
|
$ |
54,492 |
|
|
$ |
52,782 |
|
|
3.2 |
% |
|
$ |
110,587 |
|
|
$ |
107,197 |
|
|
3.2 |
% |
Same Property
NOI - excluding the impact of the 3-R initiative4 |
|
|
|
|
|
3.8 |
% |
|
|
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Same
Property NOI to Most Directly Comparable GAAP Measure: |
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income -
same properties |
|
$ |
54,492 |
|
|
$ |
52,782 |
|
|
|
|
$ |
110,587 |
|
|
$ |
107,197 |
|
|
|
Net operating income -
non-same activity5 |
|
14,790 |
|
|
12,944 |
|
|
|
|
25,525 |
|
|
23,753 |
|
|
|
Other expense, net |
|
(83 |
) |
|
(448 |
) |
|
|
|
(189 |
) |
|
(842 |
) |
|
|
General, administrative
and other |
|
(5,488 |
) |
|
(4,856 |
) |
|
|
|
(10,958 |
) |
|
(10,147 |
) |
|
|
Transaction costs |
|
— |
|
|
(2,771 |
) |
|
|
|
— |
|
|
(2,771 |
) |
|
|
Impairment charge |
|
— |
|
|
— |
|
|
|
|
(7,411 |
) |
|
— |
|
|
|
Depreciation and
amortization expense |
|
(42,710 |
) |
|
(43,841 |
) |
|
|
|
(88,540 |
) |
|
(86,082 |
) |
|
|
Interest expense |
|
(16,433 |
) |
|
(15,500 |
) |
|
|
|
(32,878 |
) |
|
(30,825 |
) |
|
|
Gains on sales of
operating properties |
|
6,290 |
|
|
194 |
|
|
|
|
15,160 |
|
|
194 |
|
|
|
Net income attributable
to noncontrolling interests |
|
(678 |
) |
|
(399 |
) |
|
|
|
(1,110 |
) |
|
(971 |
) |
|
|
Net income (loss)
attributable to common shareholders |
|
$ |
10,180 |
|
|
$ |
(1,895 |
) |
|
|
|
$ |
10,186 |
|
|
$ |
(494 |
) |
|
|
____________________ |
1 |
|
Same Property NOI excludes
eight properties in redevelopment, the recently completed Northdale
Promenade as well as office properties (Thirty South Meridian and
Eddy Street Commons). |
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 |
|
Same Property NOI excludes
net gains from outlot sales, straight-line rent revenue, bad debt
expense and recoveries, lease termination fees, amortization of
lease intangibles and significant prior period expense recoveries
and adjustments, if any. |
4 |
|
See pages 27 and 28 of Q2
2017 supplemental for further detail of the properties included in
the 3-R initiative. |
5 |
|
Includes non-cash activity
across the portfolio as well as net operating income from
properties not included in the same property pool. |
|
The Company
uses same property NOI ("Same Property NOI"), a non-GAAP financial
measure, to evaluate the performance of our properties. Same
Property NOI excludes properties that have not been owned for the
full period presented. It also excludes net gains from outlot
sales, straight-line rent revenue, bad debt expense and recoveries,
lease termination fees, amortization of lease intangibles and
significant prior period expense recoveries and adjustments, if
any. 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 period presented, which eliminates disparities in net income
due to the acquisition or disposition of properties during the
particular period presented and thus provides a more consistent
metric for the comparison of our properties. The year to date
results represent the sum of the individual quarters, as
reported. |
|
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. Our 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, the Company has 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 the Company begins recapturing space from
tenants. For the quarter ended June 30, 2017, the Company
excluded eight redevelopment properties and the recently completed
Northdale Promenade from the same property pool that met these
criteria and were owned in both comparable periods. |
Contact Information:
Dan Sink
EVP & CFO
(317) 577-5609
dsink@kiterealty.com
Kite Realty (NYSE:KRG)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kite Realty (NYSE:KRG)
Historical Stock Chart
From Sep 2023 to Sep 2024