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Kite Realty Group Trust Announces Joint Venture with TH Real Estate

Company Release - 7/2/2018 6:37 AM ET

INDIANAPOLIS, July 02, 2018 (GLOBE NEWSWIRE) -- Kite Realty Group Trust (NYSE:KRG) (“KRG”) announced today that it has formed a joint venture to acquire high-quality retail properties with a fund managed by TH Real Estate, a Nuveen company.

KRG contributed three properties valued at $99.8 million to the joint venture in exchange for a 20% ownership interest and $89.0 million in net proceeds. KRG will serve as the operating member responsible for day-to-day management of the properties and will receive property management and leasing fees.  KRG used the net proceeds received from the transaction to pay down its revolving line of credit. The joint venture obtained a 10-year $51.9 million fixed-rate loan on the properties at an interest rate of 4.09%.

“We are excited to be working with TH Real Estate in this endeavor,” said John Kite, KRG’s Chief Executive Officer.  “Our two teams work very well together, and we hope to find additional opportunities to acquire desirable properties to expand our relationship.”

The initial properties in the venture have a combined 418,000 square feet (“SF”) of gross leasable area and consist of the following:

  • Livingston Shopping Center: 140,000 SF in Livingston, New Jersey – tenants include TJ Maxx, Nordstrom Rack, DSW, buybuy Baby, Cost Plus World Market, and Ulta Beauty;
  • Plaza Volente: 156,000 SF in Austin, Texas – tenants include H-E-B Grocery, Starbucks, Great Clips, and Jersey Mike’s; and
  • Tamiami Crossing: 122,000 SF in Naples, Florida – tenants include Ross Stores, Stein Mart, Marshalls, Michaels, PetSmart, Aldi, and Ulta Beauty.

“We are very excited to partner with Kite Realty Group, whom we consider a best in class operator of open-air retail centers. The two teams have collaborated on this venture and we hope to grow our relationship over time,” said Mike Fisk, Managing Director of Retail Investments at TH Real Estate.

TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA), is one of the largest real estate investment managers in the world with $114 billion in assets under management.  Managing a suite of funds and mandates spanning both debt and equity across diverse geographies, sectors, investment styles and vehicle types, TH Real Estate provides access to every aspect of real estate investing.

About Kite Realty Group Trust:

Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust (REIT) that provides communities with convenient and beneficial shopping experiences. We connect consumers to tenants in desirable markets through our portfolio of open-air shopping centers. Using operational, development, and redevelopment expertise, we continuously optimize our portfolio to maximize value and return to our shareholders. As of March 31, 2018, the Company owned interests in 115 operating and redevelopment properties totaling approximately 22.5 million square feet and 2 development projects currently under construction totaling 0.7 million square feet.

For more information, please visit our website at kiterealty.com.

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 and inflationary trends or outlook; 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 competition and the perception that such competition 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, 2017, 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.

Contact Information: Kite Realty Group Trust
                                               
Wade Achenbach
SVP, Capital Markets & Corporate Treasurer
317.713.5660
wachenbach@kiterealty.com

Bryan McCarthy
SVP, Marketing & Communications
317.713.5692
bmccarthy@kiterealty.com

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Source: Kite Realty Group Trust
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