Form 8-K - Current report

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): October 30, 2023

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 October 30, 2023, Kite Realty Group Trust (the “Company”) announced its consolidated financial results for the quarter ended September 30, 2023. 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 Third Quarter 2023 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 October 30, 2023

99.2						Kite Realty Group Trust Third Quarter 2023 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: October 30, 2023	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


						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 Third Quarter 2023 Operating Results

Indianapolis, Indiana, October 30, 2023 – Kite Realty Group Trust (NYSE: KRG), a premier owner and operator of high-quality, open-air grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets, reported today its operating results for the third quarter ended September 30, 2023. For the quarters ended September 30, 2023 and 2022, net income attributable to common shareholders was $2.1 million, or $0.01 per diluted share, compared to a net loss of $7.8 million, or $0.04 per diluted share, respectively. For the nine months ended September 30, 2023 and 2022, net income attributable to common shareholders was $39.5 million, or $0.18 per diluted share, compared to a net loss of $11.5 million, or $0.05 per diluted share, respectively.

Company raises 2023 guidance

Leased approximately 1.4 million square feet at 14.2% comparable blended cash leasing spreads

Same Property NOI increased by 4.7% on a year-over-year basis

Acquired Prestonwood Place (Dallas, TX) for $81.0 million

Received a ‘Positive’ credit rating outlook upgrade from S&P Global Ratings

“The KRG team continues to leverage our high-quality and diverse portfolio to drive exceptional operating results, evidenced by strong leasing volumes, double-digit blended cash leasing spreads, and higher fixed rent bumps,” said John A. Kite, Chairman and CEO. “Our sustained outperformance is a testament to our premier portfolio, efficient operating platform, best-in-class balance sheet, and our team’s relentless intensity.”

Third Quarter 2023 Financial and Operational Results

▪Generated NAREIT FFO of the Operating Partnership of $114.7 million, or $0.51 per diluted share.

▪Same Property NOI increased by 4.7%.

▪Executed 214 new and renewal leases representing approximately 1.4 million square feet.

▪Blended cash leasing spreads of 14.2% on 165 comparable leases, including 36.0% on 33 comparable new leases, 17.8% on 68 comparable non-option renewals and 8.3% on 64 comparable option renewals.

▪Cash leasing spreads of 24.0% on a blended basis for comparable new and non-option renewal leases.

▪Operating retail portfolio annualized base rent (ABR) per square foot of $20.56 at September 30, 2023, a 3.5% increase year-over-year.

▪Retail portfolio leased percentage of 93.4% at September 30, 2023, a 60-basis point decrease on a year-over-year basis.

▪The leased percentage now incorporates the full impact of Bed Bath & Beyond closures, which impacted the leased rate by approximately 180 basis points.

▪Portfolio leased-to-occupied spread at period end of 220 basis points, which represents $27 million of signed-not-open NOI.

Third Quarter 2023 Capital Allocation Activity

▪Acquired Prestonwood Place (Dallas, TX), a premier asset, for $81.0 million. This high-quality infill neighborhood center is located in the desirable, affluent Addison community, and will complement the Company’s significant Dallas portfolio.

▪Sold Reisterstown Road Plaza (Baltimore, MD) for $48.3 million.

▪Subsequent to quarter end, sold Eastside (Dallas, TX) for $14.4 million.

▪The Company currently has two active development projects with limited future capital commitments of $32.6 million.

Third Quarter 2023 Balance Sheet Overview

▪As of September 30, 2023, the Company’s net debt to Adjusted EBITDA was 5.1x.

▪S&P Ratings revised its rating outlook for the Company to ‘Positive’ from ‘Stable’ and affirmed the Company’s ratings, including the ‘BBB-’ Issuer Credit Rating.

Dividend

On October 27, 2023, the Company’s Board of Trustees declared a fourth quarter 2023 dividend of $0.25 per common share, which represents an 11.5% increase in total dividends declared over the prior year. The fourth quarter dividend will be paid on or about January 12, 2024, to shareholders of record as of January 5, 2024.

2023 Earnings Guidance

The Company expects to generate net income attributable to common shareholders of $0.19 to $0.23 per diluted share in 2023. The Company is raising its 2023 NAREIT FFO guidance range to $1.99 to $2.03 per diluted share from $1.96 to $2.00 per diluted share, based, in part, on the following key assumptions at the midpoint:

▪2023 Same Property NOI growth of 4.5%, which represents a 100-basis point increase.

▪Bad debt reserves of 45 basis points of total revenues for the full calendar year of 2023.

▪Bad debt reserves of 75 basis points of total revenues for the fourth quarter of 2023.

The following table reconciles the Company’s 2023 net income guidance range to the Company’s 2023 NAREIT FFO guidance range:


	Low		High

Net income	$	0.19	$	0.23
Gain on sales of operating properties, net	(0.10)		(0.10)
Depreciation and amortization	1.90		1.90
NAREIT FFO	$	1.99	$	2.03

Earnings Conference Call

Kite Realty Group Trust will conduct a conference call to discuss its financial results on Tuesday, October 31, 2023, 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 Third Quarter 2023 Webcast. The dial-in registration link is: KRG Third Quarter 2023 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 nearly 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 September 30, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use

assets, comprising approximately 28.3 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: national and local 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 tenants; the competitive environment in which the Company operates, including potential oversupplies of and 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 tenant’s 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 Texas, Florida, Maryland, New York, and North Carolina; civil unrest, acts of violence, terrorism or war, acts of God, climate change, epidemics, pandemics (including COVID-19), 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; 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 (“the SEC”) 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, 2022, 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)


	September 30, 2023		December 31, 2022
Assets:
Investment properties, at cost	$	7,708,408	$	7,732,573
Less: accumulated depreciation	(1,311,064)		(1,161,148)
Net investment properties	6,397,344		6,571,425

Cash and cash equivalents	52,317		115,799
Tenant and other receivables, including accrued straight-line rent of $53,432 and $44,460, respectively	113,069		101,301
Restricted cash and escrow deposits	5,997		6,171
Deferred costs, net	324,649		409,828

Prepaid and other assets	134,615		127,044
Investments in unconsolidated subsidiaries	10,197		10,414
Assets associated with investment property held for sale	14,309		—
Total assets	$	7,052,497	$	7,341,982

Liabilities and Equity:
Liabilities:
Mortgage and other indebtedness, net	$	2,868,828	$	3,010,299
Accounts payable and accrued expenses	198,454		207,792
Deferred revenue and other liabilities	279,960		298,039
Liabilities associated with investment property held for sale	586		—
Total liabilities	3,347,828		3,516,130

Commitments and contingencies
Limited Partners’ interests in the Operating Partnership	67,000		53,967

Equity:
Common shares, $0.01 par value, 490,000,000 shares authorized, 219,387,345 and 219,185,658 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	2,194		2,192
Additional paid-in capital	4,891,105		4,897,736
Accumulated other comprehensive income	68,195		74,344
Accumulated deficit	(1,326,200)		(1,207,757)
Total shareholders’ equity	3,635,294		3,766,515
Noncontrolling interests	2,375		5,370
Total equity	3,637,669		3,771,885
Total liabilities and equity	$	7,052,497	$	7,341,982

Kite Realty Group Trust

Consolidated Statements of Operations

(dollars in thousands, except per share amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenue:
Rental income	$	203,990	$	195,675	$	612,889	$	582,772
Other property-related revenue	2,172		3,013		5,971		7,932
Fee income	1,057		1,623		3,868		6,603
Total revenue	207,219		200,311		622,728		597,307

Expenses:
Property operating	27,644		25,507		82,190		77,558
Real estate taxes	26,453		25,703		80,333		80,445
General, administrative and other	13,917		14,859		41,800		41,977
Merger and acquisition costs	—		108		—		1,006
Depreciation and amortization	105,930		115,831		323,463		357,096
Impairment charges	477		—		477		—
Total expenses	174,421		182,008		528,263		558,082

(Loss) gain on sales of operating properties, net	(5,972)		—		22,468		27,126

Operating income	26,826		18,303		116,933		66,351
Other (expense) income:
Interest expense	(25,484)		(26,226)		(78,114)		(77,449)
Income tax (expense) benefit of taxable REIT subsidiary	(68)		—		(84)		259

Equity in (loss) earnings of unconsolidated subsidiaries	(47)		144		(173)		(56)
Other income (expense), net	950		58		1,657		(207)
Net income (loss)	2,177		(7,721)		40,219		(11,102)
Net income attributable to noncontrolling interests	(107)		(116)		(700)		(408)
Net income (loss) attributable to common shareholders	$	2,070	$	(7,837)	$	39,519	$	(11,510)

Net income (loss) per common share – basic and diluted	$	0.01	$	(0.04)	$	0.18	$	(0.05)


Weighted average common shares outstanding – basic	219,381,248		219,103,669		219,323,570		219,053,320
Weighted average common shares outstanding – diluted	219,976,080		219,103,669		219,809,543		219,053,320

Kite Realty Group Trust

Funds From Operations (“FFO”)(1)(2)

(dollars in thousands, except per share amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

Net income (loss)	$	2,177	$	(7,721)	$	40,219	$	(11,102)
Less: net income attributable to noncontrolling interests in properties	(67)		(209)		(201)		(535)
Less: loss (gain) on sales of operating properties, net	5,972		—		(22,468)		(27,126)
Add: impairment charges	477		—		477		—
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	106,171		116,186		324,216		358,161
FFO of the Operating Partnership(1)	114,730		108,256		342,243		319,398
Less: Limited Partners’ interests in FFO	(1,685)		(1,437)		(4,739)		(3,932)
FFO attributable to common shareholders(1)	$	113,045	$	106,819	$	337,504	$	315,466
FFO, as defined by NAREIT, per share of the Operating Partnership – basic	$	0.52	$	0.49	$	1.54	$	1.44
FFO, as defined by NAREIT, per share of the Operating Partnership – diluted	$	0.51	$	0.49	$	1.54	$	1.44

FFO of the Operating Partnership(1)	$	114,730	$	108,256	$	342,243	$	319,398

Add: merger and acquisition costs	—		108		—		1,006


Less: prior period collection impact	—		(691)		—		(2,745)
FFO, as adjusted, of the Operating Partnership	$	114,730	$	107,673	$	342,243	$	317,659
FFO, as adjusted, per share of the Operating Partnership – basic	$	0.52	$	0.48	$	1.54	$	1.43
FFO, as adjusted, per share of the Operating Partnership – diluted	$	0.51	$	0.48	$	1.54	$	1.43

Weighted average common shares outstanding – basic	219,381,248		219,103,669		219,323,570		219,053,320
Weighted average common shares outstanding – diluted	219,976,080		219,528,110		219,809,543		219,701,722

Weighted average common shares and units outstanding – basic	222,649,706		222,059,366		222,409,769		221,791,428
Weighted average common shares and units outstanding – diluted	223,244,538		222,483,807		222,895,742		222,439,830

FFO, as defined by NAREIT, per diluted share/unit
Net income (loss)	$	0.01	$	(0.03)	$	0.18	$	(0.05)
Less: net income attributable to noncontrolling interests in properties	0.00		0.00		0.00		0.00
Less: loss (gain) on sales of operating properties, net	0.03		0.00		(0.10)		(0.12)
Add: impairment charges	0.00		0.00		0.00		0.00
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	0.48		0.52		1.45		1.61
FFO, as defined by NAREIT, of the Operating Partnership per diluted share/unit(1)(2)	$	0.51	$	0.49	$	1.54	$	1.44

Add: merger and acquisition costs	0.00		0.00		0.00		0.00

Less: prior period collection impact	0.00		0.00		0.00		(0.01)

FFO, as adjusted, of the Operating Partnership per diluted share/unit(2)	$	0.51	$	0.48	$	1.54	$	1.43

(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 flow 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) in 2022, 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 September 30,			Nine Months Ended September 30,
	2023	2022	Change	2023	2022	Change

Number of properties in same property pool for the period(1)	175	175		175	175


Leased percentage at period end	93.5	%	94.7	%	93.5	%	94.7	%
Economic occupancy percentage at period end	91.3	%	91.8	%	91.3	%	91.8	%
Economic occupancy percentage(2)	91.6	%	91.9	%	92.2	%	91.5	%


Minimum rent	$	144,952	$	141,721			$	433,789	$	419,891
Tenant recoveries	40,681		38,808				122,938		118,819
Bad debt reserve	(84)		(2,202)				(1,711)		(5,640)
Other income, net	2,183		1,696				6,371		3,835
Total revenue	187,732		180,023				561,387		536,905

Property operating	(23,278)		(22,276)				(68,970)		(65,485)
Real estate taxes	(25,198)		(24,686)				(77,247)		(77,945)
Total expenses	(48,476)		(46,962)				(146,217)		(143,430)

Same Property NOI	$	139,256	$	133,061	4.7	%	$	415,170	$	393,475	5.5	%


Reconciliation of Same Property NOI to most directly comparable GAAP measure:
Net operating income – same properties	$	139,256	$	133,061			$	415,170	$	393,475

Net operating income – non-same activity(3)	12,809		14,417				41,167		39,226
Total property NOI	152,065		147,478		3.1	%	456,337		432,701		5.5	%
Other income, net	1,892		1,825				5,268		6,599
General, administrative and other	(13,917)		(14,859)				(41,800)		(41,977)
Merger and acquisition costs	—		(108)				—		(1,006)

Impairment charges	(477)		—				(477)		—
Depreciation and amortization	(105,930)		(115,831)				(323,463)		(357,096)
Interest expense	(25,484)		(26,226)				(78,114)		(77,449)
(Loss) gain on sales of operating properties, net	(5,972)		—				22,468		27,126
Net income attributable to noncontrolling interests	(107)		(116)				(700)		(408)
Net income (loss) attributable to common shareholders	$	2,070	$	(7,837)			$	39,519	$	(11,510)

(1)Same Property NOI excludes the following: (i) properties acquired or placed in service during 2022 and 2023; (ii) the multifamily rental units and commercial portion at One Loudoun Downtown – Pads G & H; (iii) Shoppes at Quarterfield, Circle East and The Landing at Tradition – Phase II, which were reclassified from active redevelopment into our operating portfolio in June 2022, September 2022 and June 2023, respectively; (iv) two active development and redevelopment projects; (v) Edwards Multiplex – Ontario, which was reclassified from our operating portfolio into redevelopment in March 2023; (vi) properties sold or classified as held for sale during 2022 and 2023; and (vii) 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.

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. 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 nine months ended September 30, 2023, the same property pool excludes the following: (i) properties acquired or placed in service during 2022 and 2023; (ii) the multifamily rental units and commercial portion at One Loudoun Downtown – Pads G & H; (iii) Shoppes at Quarterfield, Circle East and The Landing at Tradition – Phase II, which were reclassified from active redevelopment into our operating portfolio in June 2022, September 2022 and June 2023, respectively; (iv) two active development and redevelopment projects; (v) Edwards Multiplex – Ontario, which was reclassified from our operating portfolio into redevelopment in March 2023; (vi) properties sold or classified as held for sale during 2022 and 2023; and (vii) office properties.

Kite Realty Group Trust

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

(dollars in thousands)

(unaudited)


	Three Months Ended September 30, 2023

Net income	$	2,177
Depreciation and amortization	105,930
Interest expense	25,484
Income tax expense of taxable REIT subsidiary	68
EBITDA	133,659
Unconsolidated Adjusted EBITDA	591

Impairment charges	477

Loss on sales of operating properties, net	5,972

Other income and expense, net	(903)
Noncontrolling interests	(197)
Adjusted EBITDA	$	139,599

Annualized Adjusted EBITDA(1)	$	558,394

Company share of Net Debt:
Mortgage and other indebtedness, net	$	2,868,828
Plus: Company share of unconsolidated joint venture debt	51,738
Less: Partner share of consolidated joint venture debt(2)	(9,861)
Less: cash, cash equivalents, and restricted cash	(61,410)
Less: debt discounts, premiums and issuance costs, net	(25,626)
Company share of Net Debt	$	2,823,669

Net Debt to Adjusted EBITDA	5.1x

(1)Represents Adjusted EBITDA for the three months ended September 30, 2023 (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 subsidiary, and depreciation and amortization. For informational purposes, the Company also provides Adjusted EBITDA, which it defines as EBITDA less (i) Adjusted EBITDA from unconsolidated entities, (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.


						Exhibit 99.2

Kite Realty Group Trust

Quarterly Financial Supplement as of September 30, 2023

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 Third Quarter 2023 Operating Results

Company raises 2023 guidance

Leased approximately 1.4 million square feet at 14.2% comparable blended cash leasing spreads

Same Property NOI increased by 4.7% on a year-over-year basis

Acquired Prestonwood Place (Dallas, TX) for $81.0 million

Received a ‘Positive’ credit rating outlook upgrade from S&P Global Ratings

Third Quarter 2023 Financial and Operational Results

▪Generated NAREIT FFO of the Operating Partnership of $114.7 million, or $0.51 per diluted share.

▪Same Property NOI increased by 4.7%.

▪Executed 214 new and renewal leases representing approximately 1.4 million square feet.

▪Blended cash leasing spreads of 14.2% on 165 comparable leases, including 36.0% on 33 comparable new leases, 17.8% on 68 comparable non-option renewals and 8.3% on 64 comparable option renewals.

▪Cash leasing spreads of 24.0% on a blended basis for comparable new and non-option renewal leases.

▪Operating retail portfolio annualized base rent (ABR) per square foot of $20.56 at September 30, 2023, a 3.5% increase year-over-year.

▪Retail portfolio leased percentage of 93.4% at September 30, 2023, a 60-basis point decrease on a year-over-year basis.

▪The leased percentage now incorporates the full impact of Bed Bath & Beyond closures, which impacted the leased rate by approximately 180 basis points.

▪Portfolio leased-to-occupied spread at period end of 220 basis points, which represents $27 million of signed-not-open NOI.


			i

Third Quarter 2023 Capital Allocation Activity

▪Sold Reisterstown Road Plaza (Baltimore, MD) for $48.3 million.

▪Subsequent to quarter end, sold Eastside (Dallas, TX) for $14.4 million.

▪The Company currently has two active development projects with limited future capital commitments of $32.6 million.

Third Quarter 2023 Balance Sheet Overview

▪As of September 30, 2023, the Company’s net debt to Adjusted EBITDA was 5.1x.

▪S&P Ratings revised its rating outlook for the Company to ‘Positive’ from ‘Stable’ and affirmed the Company’s ratings, including the ‘BBB-’ Issuer Credit Rating.

Dividend

2023 Earnings Guidance

▪2023 Same Property NOI growth of 4.5%, which represents a 100-basis point increase.

▪Bad debt reserves of 45 basis points of total revenues for the full calendar year of 2023.

▪Bad debt reserves of 75 basis points of total revenues for the fourth quarter of 2023.

The following table reconciles the Company’s 2023 net income guidance range to the Company’s 2023 NAREIT FFO guidance range:


	Low		High

Net income	$	0.19	$	0.23
Gain on sales of operating properties, net	(0.10)		(0.10)
Depreciation and amortization	1.90		1.90
NAREIT FFO	$	1.99	$	2.03

Earnings Conference Call

About Kite Realty Group Trust


			ii

assets, comprising approximately 28.3 million square feet of gross leasable space. For more information, please visit kiterealty.com.

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/Ms. Lizzy Doykan

Mr. Michael W. Mueller/Mr. Hongliang Zhang

(317) 713-7646

(646) 855-1363/(646) 855-5759

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

mhunt@kiterealty.com

jeff.spector@bofa.com

michael.w.mueller@jpmorgan.com/

lizzy.doykan@bofa.com

hongliang.zhang@jpmorgan.com

Transfer Agent

Barclays

KeyBanc Capital Markets

Broadridge Financial Solutions

Mr. Anthony F. Powell

Mr. Todd Thomas

Ms. Kristen Tartaglione

(212) 526-8768

(917) 368-2286

2 Journal Square, 7th Floor

anthony.powell@barclays.com

tthomas@keybanccm.com

Jersey City, NJ 07306

(201) 714-8094

BTIG

Piper Sandler

Mr. Michael Gorman

Mr. Alexander Goldfarb

(212) 738-6138

(212) 466-7937

mgorman@btig.com

alexander.goldfarb@psc.com

Stock Specialist

GTS

Citigroup Global Markets

Raymond James

545 Madison Avenue, 15th Floor

Mr. Craig Mailman

Mr. RJ Milligan

New York, NY 10022

(212) 816-4471

(727) 567-2585

(212) 715-2830

craig.mailman@citi.com

rjmilligan@raymondjames.com

Compass Point Research & Trading, LLC

Wells Fargo

Mr. Floris van Dijkum

Mr. James Feldman/Ms. Dori Kesten

(646) 757-2621

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

fvandijkum@compasspointllc.com

james.feldman@wellsfargo.com/

dori.kesten@wellsfargo.com

Green Street

Ms. Paulina Rojas Schmidt

(949) 640-8780

projasschmidt@greenstreet.com


3rd Quarter 2023 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 September 30,						Nine Months Ended September 30,
Summary Financial Results	2023			2022			2023			2022

Total revenue (page 4)	$	207,219		$	200,311		$	622,728		$	597,307
Net income (loss) attributable to common shareholders (page 4)	$	2,070		$	(7,837)		$	39,519		$	(11,510)
Net income (loss) per diluted share (page 4)	$	0.01		$	(0.04)		$	0.18		$	(0.05)
Net operating income (NOI) (page 6)	$	152,065		$	147,478		$	456,337		$	432,701
Adjusted EBITDA (page 6)	$	139,205		$	134,242		$	418,405		$	397,327
NAREIT Funds From Operations (FFO) (page 7)	$	114,730		$	108,256		$	342,243		$	319,398
NAREIT FFO per diluted share (page 7)	$	0.51		$	0.49		$	1.54		$	1.44
FFO, as adjusted (page 7)	$	114,730		$	107,673		$	342,243		$	317,659
FFO, as adjusted per diluted share (page 7)	$	0.51		$	0.48		$	1.54		$	1.43

Dividend payout ratio (as % of NAREIT FFO, as adjusted)	47		%	44		%	47		%	42		%


	Three Months Ended
Summary Operating and Financial Ratios	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022

NOI margin (page 6)	73.9		%	74.2		%	73.7		%	73.7		%	74.5		%
NOI margin – retail (page 6)	74.4		%	74.4		%	74.4		%	74.3		%	75.0		%
Same property NOI performance (page 5)	4.7		%	5.7		%	6.5		%	6.2		%	4.4		%
Total property NOI performance (page 5)	3.1		%	5.4		%	8.0		%	29.2		%	182.7		%
Net debt to Adjusted EBITDA, current quarter (page 9)	5.1x			5.0x			5.3x			5.2x			5.4x
Recovery ratio of retail operating properties (page 6)	90.8		%	87.4		%	87.2		%	87.0		%	89.1		%
Recovery ratio of consolidated portfolio (page 6)	85.9		%	82.7		%	85.8		%	82.5		%	84.3		%

Outstanding Classes of Stock
Common shares and units outstanding (page 18)	222,822,226			222,408,487			222,360,110			222,056,355			222,054,091

Summary Portfolio Statistics
Number of properties
Operating retail (page 14)(1)	180			181			181			183			183
Office and other components	11			12			12			12			12
Development and redevelopment projects (page 13)	2			2			3			3			4
Owned retail operating gross leasable area (GLA)(2) (page 14)	28.3		M	28.6		M	28.5		M	28.8		M	28.9		M
Owned office GLA	1.4		M	1.6		M	1.6		M	1.6		M	1.6		M
Number of multifamily units(3)	1,672			1,672			1,672			1,672			1,672
Percent leased – total	93.3		%	93.8		%	94.5		%	94.4		%	93.9		%
Percent leased – retail	93.4		%	94.1		%	94.8		%	94.6		%	94.0		%
Anchor	95.1		%	96.5		%	97.4		%	97.0		%	96.4		%
Small shop	90.2		%	89.4		%	89.8		%	90.0		%	89.3		%

Annualized base rent (ABR) per square foot	$	20.56		$	20.19		$	20.04		$	20.02		$	19.86

Total new and renewal lease GLA (page 16)	1,398,695			1,331,056			831,231			1,034,055			1,574,338
New lease cash rent spread (page 16)	36.0		%	45.5		%	38.0		%	22.3		%	30.7		%
Non-option renewal lease cash rent spread (page 16)	17.8		%	11.9		%	14.9		%	11.3		%	12.0		%
Option renewal lease cash rent spread (page 16)	8.3		%	8.6		%	7.8		%	7.1		%	5.9		%
Total new and renewal lease cash rent spread (page 16)	14.2		%	14.8		%	13.0		%	11.4		%	10.8		%

2023 Guidance

Current
(as of 10/30/23)

Previous
(as of 7/31/23)

Original
(as of 2/13/23)

NAREIT FFO per diluted share

$1.99 to $2.03

$1.96 to $2.00

$1.89 to $1.95

Credit Ratings and Outlook

Fitch Ratings

BBB / Stable

Moody's Investors Services

Baa3 / Stable

Standard & Poor's Rating Services

BBB- / Positive

(1)Excludes one operating retail property classified as held for sale as of September 30, 2023.

(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.


3rd Quarter 2023 Supplemental Financial and Operating Statistics			2

Kite Realty Group Trust

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)


	September 30, 2023		December 31, 2022
Assets:
Investment properties, at cost	$	7,708,408	$	7,732,573
Less: accumulated depreciation	(1,311,064)		(1,161,148)
Net investment properties	6,397,344		6,571,425

Cash and cash equivalents	52,317		115,799
Tenant and other receivables, including accrued straight-line rent of $53,432 and $44,460, respectively	113,069		101,301
Restricted cash and escrow deposits	5,997		6,171
Deferred costs, net	324,649		409,828

Prepaid and other assets	134,615		127,044
Investments in unconsolidated subsidiaries	10,197		10,414
Assets associated with investment property held for sale	14,309		—
Total assets	$	7,052,497	$	7,341,982

Liabilities and Equity:
Liabilities:
Mortgage and other indebtedness, net	$	2,868,828	$	3,010,299
Accounts payable and accrued expenses	198,454		207,792
Deferred revenue and other liabilities	279,960		298,039
Liabilities associated with investment property held for sale	586		—
Total liabilities	3,347,828		3,516,130

Commitments and contingencies
Limited Partners’ interests in the Operating Partnership	67,000		53,967

Equity:
Common shares, $0.01 par value, 490,000,000 shares authorized, 219,387,345 and 219,185,658 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	2,194		2,192
Additional paid-in capital	4,891,105		4,897,736
Accumulated other comprehensive income	68,195		74,344
Accumulated deficit	(1,326,200)		(1,207,757)
Total shareholders’ equity	3,635,294		3,766,515
Noncontrolling interests	2,375		5,370
Total equity	3,637,669		3,771,885
Total liabilities and equity	$	7,052,497	$	7,341,982


3rd Quarter 2023 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenue:
Rental income	$	203,990	$	195,675	$	612,889	$	582,772
Other property-related revenue	2,172		3,013		5,971		7,932
Fee income	1,057		1,623		3,868		6,603
Total revenue	207,219		200,311		622,728		597,307

Expenses:
Property operating	27,644		25,507		82,190		77,558
Real estate taxes	26,453		25,703		80,333		80,445
General, administrative and other	13,917		14,859		41,800		41,977
Merger and acquisition costs	—		108		—		1,006
Depreciation and amortization	105,930		115,831		323,463		357,096
Impairment charges	477		—		477		—
Total expenses	174,421		182,008		528,263		558,082

(Loss) gain on sales of operating properties, net	(5,972)		—		22,468		27,126

Operating income	26,826		18,303		116,933		66,351
Other (expense) income:
Interest expense	(25,484)		(26,226)		(78,114)		(77,449)
Income tax (expense) benefit of taxable REIT subsidiary	(68)		—		(84)		259

Equity in (loss) earnings of unconsolidated subsidiaries	(47)		144		(173)		(56)
Other income (expense), net	950		58		1,657		(207)
Net income (loss)	2,177		(7,721)		40,219		(11,102)
Net income attributable to noncontrolling interests	(107)		(116)		(700)		(408)
Net income (loss) attributable to common shareholders	$	2,070	$	(7,837)	$	39,519	$	(11,510)

Net income (loss) per common share – basic and diluted	$	0.01	$	(0.04)	$	0.18	$	(0.05)


Weighted average common shares outstanding – basic	219,381,248		219,103,669		219,323,570		219,053,320
Weighted average common shares outstanding – diluted	219,976,080		219,103,669		219,809,543		219,053,320


3rd Quarter 2023 Supplemental Financial and Operating Statistics			4

Kite Realty Group Trust

Same Property Net Operating Income (“NOI”)

(dollars in thousands)

(unaudited)


	Three Months Ended September 30,			Nine Months Ended September 30,
	2023	2022	Change	2023	2022	Change

Number of properties in same property pool for the period(1)	175	175		175	175


Leased percentage at period end	93.5	%	94.7	%	93.5	%	94.7	%
Economic occupancy percentage at period end	91.3	%	91.8	%	91.3	%	91.8	%
Economic occupancy percentage(2)	91.6	%	91.9	%	92.2	%	91.5	%


Minimum rent	$	144,952	$	141,721			$	433,789	$	419,891
Tenant recoveries	40,681		38,808				122,938		118,819
Bad debt reserve	(84)		(2,202)				(1,711)		(5,640)
Other income, net	2,183		1,696				6,371		3,835
Total revenue	187,732		180,023				561,387		536,905

Property operating	(23,278)		(22,276)				(68,970)		(65,485)
Real estate taxes	(25,198)		(24,686)				(77,247)		(77,945)
Total expenses	(48,476)		(46,962)				(146,217)		(143,430)

Same Property NOI	$	139,256	$	133,061	4.7	%	$	415,170	$	393,475	5.5	%


Reconciliation of Same Property NOI to most directly comparable GAAP measure:
Net operating income – same properties	$	139,256	$	133,061			$	415,170	$	393,475

Net operating income – non-same activity(3)	12,809		14,417				41,167		39,226
Total property NOI	152,065		147,478		3.1	%	456,337		432,701		5.5	%
Other income, net	1,892		1,825				5,268		6,599
General, administrative and other	(13,917)		(14,859)				(41,800)		(41,977)
Merger and acquisition costs	—		(108)				—		(1,006)

Impairment charges	(477)		—				(477)		—
Depreciation and amortization	(105,930)		(115,831)				(323,463)		(357,096)
Interest expense	(25,484)		(26,226)				(78,114)		(77,449)
(Loss) gain on sales of operating properties, net	(5,972)		—				22,468		27,126
Net income attributable to noncontrolling interests	(107)		(116)				(700)		(408)
Net income (loss) attributable to common shareholders	$	2,070	$	(7,837)			$	39,519	$	(11,510)

(1)Same Property NOI excludes the following:

▪properties acquired or placed in service during 2022 and 2023;

▪the multifamily rental units and commercial portion at One Loudoun Downtown – Pads G & H;

▪Shoppes at Quarterfield, Circle East and The Landing at Tradition – Phase II, which were reclassified from active redevelopment into our operating portfolio in June 2022, September 2022 and June 2023, respectively;

▪two active development and redevelopment projects noted on page 13;

▪Edwards Multiplex – Ontario, which was reclassified from our operating portfolio into redevelopment in March 2023;

▪properties sold or classified as held for sale during 2022 and 2023; 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.


3rd Quarter 2023 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
	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Revenue:
Minimum rent(1)	$	150,126	$	153,566	$	149,310	$	147,882	$	145,511
Minimum rent – ground leases	10,010		10,402		10,586		10,472		10,715
Tenant reimbursements	42,280		41,047		42,857		40,245		40,043
Bad debt reserve	(219)		(233)		(1,555)		(2,403)		(1,881)
Other property-related revenue	1,737		1,251		1,106		2,202		2,099
Overage rent	1,793		1,054		1,865		3,380		1,287
Parking revenue, net(2)	21		73		121		345		284
Total revenue	205,748		207,160		204,290		202,123		198,058

Expenses:
Property operating – recoverable(3)	22,905		23,095		22,962		24,852		22,063
Property operating – non-recoverable(3)	4,435		3,735		3,881		4,387		3,059
Real estate taxes	26,343		26,540		26,965		23,934		25,458
Total expenses	53,683		53,370		53,808		53,173		50,580

NOI	152,065		153,790		150,482		148,950		147,478

Other (expense) income:
General, administrative and other	(13,917)		(14,499)		(13,384)		(12,883)		(14,859)

Fee income	1,057		1,040		1,771		1,936		1,623

Total other (expense) income	(12,860)		(13,459)		(11,613)		(10,947)		(13,236)

Adjusted EBITDA	139,205		140,331		138,869		138,003		134,242

Impairment charges	(477)		—		—		—		—
Depreciation and amortization	(105,930)		(109,462)		(108,071)		(112,709)		(115,831)
Merger and acquisition costs	—		—		—		81		(108)
Interest expense	(25,484)		(27,205)		(25,425)		(26,827)		(26,226)
Equity in (loss) earnings of unconsolidated subsidiaries	(47)		118		(244)		312		144
Income tax (expense) benefit of taxable REIT subsidiary	(68)		(45)		29		(302)		—

Other income, net	950		304		403		447		58
(Loss) gain on sales of operating properties, net	(5,972)		28,440		—		(57)		—
Net income (loss)	2,177		32,481		5,561		(1,052)		(7,721)
Less: net income attributable to noncontrolling interests	(107)		(423)		(170)		(74)		(116)
Net income (loss) attributable to common shareholders	$	2,070	$	32,058	$	5,391	$	(1,126)	$	(7,837)


NOI/Revenue – Retail properties	74.4	%	74.4	%	74.4	%	74.3	%	75.0	%
NOI/Revenue	73.9	%	74.2	%	73.7	%	73.7	%	74.5	%
Recovery Ratios(4)
– Retail properties	90.8	%	87.4	%	87.2	%	87.0	%	89.1	%
– Consolidated	85.9	%	82.7	%	85.8	%	82.5	%	84.3	%

(1)Minimum rent includes $262,000, $3.6 million, $0.5 million, $144,000, and $153,000 of lease termination income for the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively.

(2)Parking revenue, net represents 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 $3.5 million allocable to the property operations in the three months ended September 30, 2023, 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. Tenant reimbursements for the three months ended December 31, 2022 have been reduced by $1.4 million due to reserves for Bed Bath & Beyond Inc. real estate tax reimbursements.


3rd Quarter 2023 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

Net income (loss)	$	2,177	$	(7,721)	$	40,219	$	(11,102)
Less: net income attributable to noncontrolling interests in properties	(67)		(209)		(201)		(535)
Less: loss (gain) on sales of operating properties, net	5,972		—		(22,468)		(27,126)
Add: impairment charges	477		—		477		—
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	106,171		116,186		324,216		358,161
FFO of the Operating Partnership(1)	114,730		108,256		342,243		319,398
Less: Limited Partners’ interests in FFO	(1,685)		(1,437)		(4,739)		(3,932)
FFO attributable to common shareholders(1)	$	113,045	$	106,819	$	337,504	$	315,466
FFO, as defined by NAREIT, per share of the Operating Partnership – basic	$	0.52	$	0.49	$	1.54	$	1.44
FFO, as defined by NAREIT, per share of the Operating Partnership – diluted	$	0.51	$	0.49	$	1.54	$	1.44

FFO of the Operating Partnership(1)	$	114,730	$	108,256	$	342,243	$	319,398

Add: merger and acquisition costs	—		108		—		1,006


Less: prior period collection impact	—		(691)		—		(2,745)
FFO, as adjusted, of the Operating Partnership	$	114,730	$	107,673	$	342,243	$	317,659
FFO, as adjusted, per share of the Operating Partnership – basic	$	0.52	$	0.48	$	1.54	$	1.43
FFO, as adjusted, per share of the Operating Partnership – diluted	$	0.51	$	0.48	$	1.54	$	1.43

Weighted average common shares outstanding – basic	219,381,248		219,103,669		219,323,570		219,053,320
Weighted average common shares outstanding – diluted	219,976,080		219,528,110		219,809,543		219,701,722

Weighted average common shares and units outstanding – basic	222,649,706		222,059,366		222,409,769		221,791,428
Weighted average common shares and units outstanding – diluted	223,244,538		222,483,807		222,895,742		222,439,830

FFO, as defined by NAREIT, per diluted share/unit
Net income (loss)	$	0.01	$	(0.03)	$	0.18	$	(0.05)
Less: net income attributable to noncontrolling interests in properties	0.00		0.00		0.00		0.00
Less: loss (gain) on sales of operating properties, net	0.03		0.00		(0.10)		(0.12)
Add: impairment charges	0.00		0.00		0.00		0.00
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	0.48		0.52		1.45		1.61
FFO, as defined by NAREIT, of the Operating Partnership per diluted share/unit(1)(2)	$	0.51	$	0.49	$	1.54	$	1.44

Add: merger and acquisition costs	0.00		0.00		0.00		0.00

Less: prior period collection impact	0.00		0.00		0.00		(0.01)

FFO, as adjusted, of the Operating Partnership per diluted share/unit(2)	$	0.51	$	0.48	$	1.54	$	1.43

Reconciliation of FFO, as adjusted, to Adjusted Funds From Operations (“AFFO”)
FFO, as adjusted, of the Operating Partnership	$	114,730	$	107,673	$	342,243	$	317,659
Less: non-cash income adjustments	7,855		6,970		22,885		20,242
Less: maintenance capital expenditures	5,318		15,043		13,355		22,921
Less: tenant-related capital expenditures(3)	26,091		15,792		65,399		45,136
Total Recurring AFFO of the Operating Partnership	$	75,466	$	69,868	$	240,604	$	229,360

(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.


3rd Quarter 2023 Supplemental Financial and Operating Statistics			7

Kite Realty Group Trust

Joint Venture Summary as of September 30, 2023

(dollars in thousands)


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

Delray Marketplace	$	17,600	2	%	$	352	$	—
One Loudoun – Pads G&H Residential	95,095		10	%	9,509		790
Total	$	112,695			$	9,861	$	790


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	$	7,623	$	279	$	1,116
Glendale Center Apartments	—	267	31,330		11.5	%	3,603		—		53		212
Embassy Suites at Eddy Street Commons	—	—	32,934		35	%	11,527		—		225		900
The Corner (development)	24,000	285	52,459		50	%	26,230		62		—		—
Other investments	—	—	—		—	%	—		2,512		34		136
Total	440,582	552	$	168,613			$	51,738	$	10,197	$	591	$	2,364

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


3rd Quarter 2023 Supplemental Financial and Operating Statistics			8

Kite Realty Group Trust

Key Debt Metrics as of September 30, 2023

(dollars in thousands)


Senior Unsecured Notes Covenants
	September 30, 2023			Debt Covenant Threshold(1)

Total debt to undepreciated assets	36%			<60%

Secured debt to undepreciated assets	2%			<40%

Undepreciated unencumbered assets to unsecured debt	294%			>150%

Debt service coverage	5.3x			>1.5x

Unsecured Credit Facility Covenants
	September 30, 2023			Debt Covenant Threshold(1)

Maximum leverage	35%			<60%

Minimum fixed charge coverage	4.3x			>1.5x

Secured indebtedness	2.4%			<45%

Unsecured debt interest coverage	4.5x			>1.75x

Unsecured leverage	33%			<60%

Senior Unsecured Debt Ratings

Fitch Ratings	BBB/Stable
Moody's Investors Service	Baa3/Stable
Standard & Poor's Rating Services	BBB-/Positive


Liquidity

Cash and cash equivalents	$	52,317
Availability under unsecured credit facility	1,060,700
	$	1,113,017


Unencumbered NOI as a % of Total NOI	94		%

(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
Company's consolidated debt and share of unconsolidated debt			$	2,885,079
Less: cash, cash equivalents, and restricted cash			(61,410)
			$	2,823,669
Q3 2023 Adjusted EBITDA, Annualized:
– Consolidated Adjusted EBITDA	$	556,820
– Unconsolidated Adjusted EBITDA(1)	2,364
– Minority interest Adjusted EBITDA(1)	(790)		558,394
Ratio of Company share of Net Debt to Adjusted EBITDA			5.1x

(1)See page 8 for details.


3rd Quarter 2023 Supplemental Financial and Operating Statistics			9

Kite Realty Group Trust

Summary of Outstanding Debt as of September 30, 2023

(dollars in thousands)


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

Fixed rate debt(1)	$	2,631,602	91	%	4.01	%	4.2
Variable rate debt(2)	211,600		7	%	8.58	%	3.1
Debt discounts, premiums and issuance costs, net	25,626		N/A		N/A		N/A
Total consolidated debt	2,868,828		98	%	4.35	%	4.1
KRG share of unconsolidated debt	51,738		2	%	6.63	%	5.4
Total	$	2,920,566	100	%	4.39	%	4.1


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

2023	$	1,260	$	—	$	—	$	1,260	$	69	$	1,329
2024	5,121		—		269,635		274,756		3,885		278,641
2025	5,248		—		430,000		435,248		11,176		446,424
2026	5,381		—		550,000		555,381		—		555,381
2027	4,720		8,200		289,000		301,920		—		301,920
2028 and beyond	31,849		92,788		1,150,000		1,274,637		36,608		1,311,245
Debt discounts, premiums and issuance costs, net	—		1,102		24,524		25,626		—		25,626
Total	$	53,579	$	102,090	$	2,713,159	$	2,868,828	$	51,738	$	2,920,566

(1)Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of September 30, 2023, $820.0 million in variable rate debt is hedged to a fixed rate for a weighted average of 1.9 years.

(2)Variable rate debt includes the portion of fixed rate debt that has been hedged by interest rate swaps. As of September 30, 2023, $155.0 million in fixed rate debt is hedged to a floating rate for a weighted average of 1.9 years.


3rd Quarter 2023 Supplemental Financial and Operating Statistics			10

Kite Realty Group Trust

Maturity Schedule of Outstanding Debt as of September 30, 2023

(dollars in thousands)


Description	Interest Rate(1)	Maturity Date	Balance as of September 30, 2023		% of Total Outstanding

Senior Unsecured Notes	4.58%	6/30/2024	$	149,635
Unsecured Term Loan(2)	2.68%	7/17/2024	120,000
2024 Debt Maturities			269,635		9	%

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

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			550,000		19	%

Unsecured Credit Facility(5)	SOFR + 120	1/8/2027	39,000
Senior Unsecured Exchangeable Notes	0.75%	4/1/2027	175,000
Northgate North	4.50%	6/1/2027	22,526
Delray Marketplace(6)	BSBY + 215	8/4/2027	17,600
Senior Unsecured Notes(3)	SOFR + 375	9/10/2027	75,000
2027 Debt Maturities			329,126		11	%

Unsecured Term Loan(7)	5.09%	10/24/2028	250,000
Senior Unsecured Notes	4.24%	12/28/2028	100,000
Senior Unsecured Notes	4.82%	6/28/2029	100,000
Unsecured Term Loan(8)	4.05%	7/29/2029	300,000
Rampart Commons	5.73%	6/10/2030	6,735
Senior Unsecured Notes	4.75%	9/15/2030	400,000
The Shoppes at Union Hill	3.75%	6/1/2031	9,246
Nora Plaza Shops	3.80%	2/1/2032	3,365
One Loudoun – Pads G&H Residential	5.36%	5/1/2033	95,095
2028 and beyond Debt Maturities			1,264,441		43	%
Debt discounts, premiums and issuance costs, net			25,626
Total debt per consolidated balance sheet			$	2,868,828	98	%

KRG share of unconsolidated debt
Glendale Center Apartments	SOFR + 265	5/31/2024	$	3,603
Embassy Suites at Eddy Street Commons(9)	5.03%	7/1/2025	11,527
Three Property Retail Portfolio	4.09%	7/1/2028	10,378
The Corner (development)(10)	SOFR + 286	7/20/2031	26,230
Total KRG share of unconsolidated debt			51,738		2	%
Total consolidated and KRG share of unconsolidated debt			$	2,920,566

(1)At September 30, 2023, daily SOFR was 5.31%, one-month SOFR was 5.32%, three-month SOFR was 5.53%, 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.

(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 2.70% through November 22, 2023 and subsequently 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 all time periods based on the Company’s current credit rating.

(9)Approximately $10.5 million is hedged to a fixed rate of 5.03% until June 29, 2024, and the remaining balance floats at SOFR plus 2.61%.

(10)The Corner (development) includes three loans with varying rates and maturity dates. As of September 30, 2023, the loans had a weighted average interest rate of 8.04% and a majority of the amount outstanding was at a floating rate. The maturity date shown is the weighted average maturity date as of September 30, 2023.


3rd Quarter 2023 Supplemental Financial and Operating Statistics			11

Kite Realty Group Trust

Acquisitions and Dispositions

(dollars in thousands)

Acquisitions

Property Name

Acquisition Date

Metropolitan
Statistical Area (“MSA”)

Property Type

GLA

Acquisition Price

Prestonwood Place

September 22, 2023

Dallas/Fort Worth

Multi-tenant retail

155,975

81,000

Dispositions

Property Name

Disposition Date

MSA

Property Type

GLA

Sales Price

Kingwood Commons

May 8, 2023

Houston

Multi-tenant retail

158,172

27,350

Pan Am Plaza & Garage

June 8, 2023

Indianapolis

Land & garage

—

52,025

Reisterstown Road Plaza

September 11, 2023

Baltimore

Multi-tenant retail

376,683

48,250

Eastside

October 24, 2023

Dallas/Fort Worth

Multi-tenant retail

43,640

14,425

Total dispositions

578,495

142,050


3rd Quarter 2023 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	$	32,600	$3.5M–$4.0M	$1.7M–$2.2M

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	$	32,600	$5.2M–$5.9M	$3.4M–$4.1M

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

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 represent costs to KRG post-merger and exclude any costs spent to date prior to the merger.

(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.


3rd Quarter 2023 Supplemental Financial and Operating Statistics			13

Kite Realty Group Trust

Geographic Diversification – Retail ABR by Region and State as of September 30, 2023

(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	7,541	$	151,245	26.3	%
Florida	30	3,618	65,118		11.3	%
Maryland	8	1,403	34,533		6.0	%
North Carolina	8	1,535	32,400		5.6	%
Virginia	7	1,131	30,449		5.3	%
Georgia	10	1,707	26,238		4.5	%
Tennessee	3	580	8,687		1.5	%
Oklahoma	3	506	7,918		1.4	%
South Carolina	2	262	2,362		0.4	%
Total South	115	18,283	358,950		62.3	%

West
Washington	10	1,682	30,485		5.3	%
Nevada	5	846	28,231		4.9	%
Arizona	5	725	15,295		2.7	%
California	2	531	12,400		2.1	%
Utah	2	388	7,948		1.4	%
Total West	24	4,172	94,359		16.4	%

Midwest
Indiana	15	1,639	30,283		5.3	%
Illinois	8	1,163	24,687		4.3	%
Michigan	1	308	6,596		1.1	%
Missouri	1	453	4,044		0.7	%
Ohio	1	236	2,152		0.4	%
Total Midwest	26	3,799	67,762		11.8	%

Northeast
New York	8	1,083	33,519		5.8	%
New Jersey	4	339	11,375		2.0	%
Massachusetts	1	272	4,143		0.7	%
Connecticut	1	206	3,690		0.6	%
Pennsylvania	1	136	1,982		0.4	%
Total Northeast	15	2,036	54,709		9.5	%

Total(4)	180	28,290	$	575,780	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 September 30, 2023.


3rd Quarter 2023 Supplemental Financial and Operating Statistics			14

Kite Realty Group Trust

Top 25 Tenants by ABR as of September 30, 2023

(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 (2), T.J. Maxx & HomeGoods combined (2)	45	1,322	$	14,575	2.5	%	A	A2

2	Best Buy Co., Inc.	Best Buy (15), Pacific Sales (1)	16	633	11,294		2.0	%	BBB+	A3

3	Ross Stores, Inc.	Ross Dress for Less (31), dd’s DISCOUNTS (1)	32	908	10,800		1.9	%	BBB+	A2

4	PetSmart, Inc.		32	657	10,637		1.8	%	B+	B1

5	Gap Inc.	Old Navy (25), The Gap (3), Banana Republic (3), Athleta (3)	34	455	8,371		1.5	%	BB	Ba3

6	Michaels Stores, Inc.	Michaels	28	631	8,279		1.4	%	N/A	N/A

7	Dick’s Sporting Goods, Inc.	Dick’s Sporting Goods (12), Golf Galaxy (1)	13	625	7,893		1.4	%	BBB	Baa3

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

9	The Kroger Co.	Kroger (6), Harris Teeter (2), QFC (1), Smith’s (1)	10	355	5,844		1.0	%	BBB	Baa1

10	Lowe’s Companies, Inc.		6	—	5,841		1.0	%	BBB+	Baa1

11	Nordstrom, Inc.	Nordstrom Rack	10	307	5,831		1.0	%	BB+	Ba1

12	Total Wine & More		14	332	5,743		1.0	%	N/A	N/A

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

14	Ulta Beauty, Inc.		25	259	5,465		0.9	%	N/A	N/A

15	Burlington Stores, Inc.		11	515	5,298		0.9	%	BB+	N/A

16	Albertsons Companies, Inc.	Safeway (3), Jewel-Osco (2), Tom Thumb (2)	7	395	5,100		0.9	%	BB+	Ba2

17	Five Below, Inc.		29	260	5,063		0.9	%	N/A	N/A

18	Petco Health And Wellness Company, Inc.		19	266	4,935		0.9	%	B+	B2

19	Fitness International, LLC	LA Fitness	6	242	4,884		0.8	%	B-	B3

20	Kohl’s Corporation		7	361	4,865		0.8	%	BB	Ba2

21	DSW Designer Shoe Warehouse		16	314	4,589		0.8	%	N/A	N/A

22	The Container Store Group, Inc.		7	152	4,571		0.8	%	B	N/A

23	Office Depot, Inc.	Office Depot (11), OfficeMax (3)	14	308	4,380		0.8	%	N/A	N/A

24	Mattress Firm Group Inc.	Mattress Firm (24), Sleepy’s (5)	29	144	4,123		0.7	%	B+	B1

25	Barnes & Noble, Inc.		8	192	4,113		0.7	%	N/A	N/A
	Total Top Tenants		435	10,420	$	164,943	28.6	%

(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 September 30, 2023, 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.


3rd Quarter 2023 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 – Q3 2023	67	226,593	33	119,327	$	23.48	$	31.92	36.0	%
New Leases – Q2 2023	52	234,140	29	130,030	24.04		34.97		45.5	%
New Leases – Q1 2023	44	225,651	17	58,287	21.58		29.78		38.0	%
New Leases – Q4 2022	51	309,042	21	160,787	18.31		22.39		22.3	%
Total	214	995,426	100	468,431	$	21.62	$	29.23	35.2	%	$	93.32

Non-Option Renewals – Q3 2023	83	329,048	68	184,884	$	29.22	$	34.41	17.8	%
Non-Option Renewals – Q2 2023	85	289,661	64	201,184	27.46		30.72		11.9	%
Non-Option Renewals – Q1 2023	64	251,380	41	158,525	21.40		24.58		14.9	%
Non-Option Renewals – Q4 2022	83	294,117	66	193,909	28.71		31.96		11.3	%
Total	315	1,164,206	239	738,502	$	26.93	$	30.65	13.8	%	$	1.67

Option Renewals – Q3 2023	64	843,054	64	843,054	$	15.95	$	17.27	8.3	%
Option Renewals – Q2 2023	53	807,255	53	807,255	15.65		16.99		8.6	%
Option Renewals – Q1 2023	36	354,200	36	354,200	20.57		22.17		7.8	%
Option Renewals – Q4 2022	39	430,896	39	430,896	16.73		17.92		7.1	%
Total	192	2,435,405	192	2,435,405	$	16.66	$	18.00	8.0	%	$	—

Total – Q3 2023	214	1,398,695	165	1,147,265	$	18.87	$	21.56	14.2	%
Total – Q2 2023	190	1,331,056	146	1,138,469	18.70		21.47		14.8	%
Total – Q1 2023	144	831,231	94	571,012	20.90		23.62		13.0	%
Total – Q4 2022	173	1,034,055	126	785,592	20.01		22.30		11.4	%
Total	721	4,595,037	531	3,642,338	$	19.38	$	22.01	13.6	%	$	12.34

(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.


3rd Quarter 2023 Supplemental Financial and Operating Statistics			16

Kite Realty Group Trust

Lease Expirations as of September 30, 2023

(dollars in thousands, except per square foot data)

The following table includes the Company’s operating retail properties and development/redevelopment property tenants open for business who have commenced paying rent as of September 30, 2023.


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

2023	133	275,696	284,531	$	14,419	2.7	%	$	31.65	$	20.32	$	25.86
2024	492	1,238,828	1,320,128	54,718		10.1	%	31.50		12.59		21.96
2025	478	1,153,702	2,624,051	69,319		12.8	%	31.20		12.89		18.49
2026	456	1,038,090	2,203,523	63,235		11.7	%	31.28		14.31		19.83
2027	503	1,184,318	2,377,573	70,635		13.1	%	31.90		13.99		19.97
2028	509	1,180,410	2,798,869	81,527		15.1	%	34.63		14.54		20.50
2029	307	710,136	2,207,482	57,041		10.5	%	33.96		15.57		20.16
2030	157	468,352	677,011	23,789		4.4	%	30.39		14.43		20.90
2031	141	390,246	604,162	22,561		4.2	%	32.98		16.22		22.76
2032	166	415,984	1,003,118	27,928		5.2	%	32.20		15.06		20.13
Beyond	295	720,823	1,689,348	55,337		10.2	%	35.93		17.46		22.98
	3,637	8,776,585	17,789,796	$	540,509	100.0	%	$	32.52	$	14.64	$	20.59

(1)Lease expirations table reflects rents in place as of September 30, 2023 and does not include option periods; 2023 expirations include 40 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 September 30, 2023 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.


3rd Quarter 2023 Supplemental Financial and Operating Statistics			17

Kite Realty Group Trust

Components of Net Asset Value as of September 30, 2023

(dollars in thousands)


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

GAAP property NOI (incl. ground lease revenue)	$	152,065	6	Cash, cash equivalents, and restricted cash	$	58,314	3
Non-cash revenue adjustments	(6,625)			Tenant and other receivables (net of SLR)	59,637		3
Other property-related revenue	(1,737)		6	Prepaid and other assets	134,615		3
Ground lease (“GL”) revenue	(10,010)		6
Consolidated Cash Property NOI (excl. GL)	$	133,693

Annualized Consolidated Cash Property NOI (excl. ground leases)	$	534,772

Adjustments to Normalize Annualized Cash NOI				Liabilities

Remaining NOI to come online from development and redevelopment projects(2)	$	3,750	13	Mortgage and other indebtedness, net	$	(2,843,202)	10
Unconsolidated Adjusted EBITDA	2,364		8	Pro rata adjustment for joint venture debt	(41,877)		8
General and administrative expense allocable to property management activities included in property expenses ($3.5 million in Q3)	14,000		6, note 3	Accounts payable and accrued expenses	(198,454)		3
Total Adjustments	20,114			Other liabilities	(279,960)		3
				Projected remaining under construction development/redevelopment(3)	(32,600)		13
Annualized Normalized Portfolio Cash NOI (excl. ground leases)	$	554,886
Annualized ground lease NOI	40,040
Total Annualized Portfolio Cash NOI(4)	$	594,926		Common shares and Units outstanding	222,822,226

(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 September 30, 2023.


3rd Quarter 2023 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.


3rd Quarter 2023 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


3rd Quarter 2023 Supplemental Financial and Operating Statistics			20

COVER PAGE	Oct. 30, 2023
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Oct. 30, 2023
Entity Registrant Name	KITE REALTY GROUP TRUST
Entity Incorporation, State or Country Code	MD
Entity File Number	001-32268
Entity Tax Identification Number	11-3715772
Entity Address, Address Line One	30 S. Meridian Street
Entity Address, Address Line Two	Suite 1100
Entity Address, City or Town	Indianapolis
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46204
City Area Code	(317)
Local Phone Number	577-5600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Shares, $0.01 par value per share
Trading Symbol	KRG
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0001286043
Amendment Flag	false
Kite Realty Group, L.P.
Entity Information [Line Items]
Entity Registrant Name	KITE REALTY GROUP, L.P.
Entity Incorporation, State or Country Code	DE
Entity File Number	333-202666-01
Entity Tax Identification Number	20-1453863