INDIANAPOLIS--(BUSINESS WIRE)--
Kite Realty Group Trust (NYSE: KRG):
Highlights
Operations
- Funds From Operations (FFO) was $0.11 per diluted common share for
the fourth quarter of 2010 and $0.42 per diluted common share for the
year ended December 31, 2010. Excluding a write-off of deferred
financing costs related to the payoff of the Company’s unsecured term
loan, FFO for the full year would have been $0.43 per diluted common
share.
- 138 new and renewal leases for 1.1 million square feet were
executed during 2010 for aggregate cash rent spreads of 5.1%.
- Anchor leases were executed in the fourth quarter with Urban
Outfitters at Eddy Street Commons, Toys “R” Us/Babies “R” Us at South
Elgin Commons II, Arhaus Furniture and BGI Fitness at Rivers Edge,
and, subsequent to the end of the quarter, Ross Stores at South Elgin
Commons II.
Balance Sheet
- The Company issued 2.8 million shares of 8.25% Series A Cumulative
RedeemablePerpetual Preferred Stock for net proceeds of $67.5
million, a portion of which was used to pay off its $55 million
unsecured term loan.
- KRG share of total outstanding debt (net of cash) to EBITDA was
9.1x at the end of the fourth quarter compared to 10.3x at the end of
the prior quarter.
- Including events subsequent to year-end, the Company has retired or
refinanced approximately 50% of 2011 debt maturities, leaving $75
million of 2011 maturities.
Development and Acquisitions
- Completed Eddy Street Commons development and Coral Springs Plaza
redevelopment and transitioned them to the operating portfolio.
- Commenced construction on Whole Foods at Cobblestone Plaza in
Pembroke Pines, Florida and the South Elgin Commons II project in
Chicago, Illinois.
- Subsequent to the end of the quarter, the Company acquired the
remaining 40% interest in The Centre in Carmel, Indiana.
- Subsequent to the end of the quarter, the Company acquired a Lowe’s
Foods-anchored shopping center in Wilmington, North Carolina for $3.5
million.
Kite Realty Group Trust (NYSE: KRG) (the “Company”) today announced
results for its fourth quarter and year ended December 31, 2010.
Financial statements and exhibits attached to this release include
results for the three and twelve months ended December 31, 2010 and 2009.
Financial and Operating Results
For the three months ended December 31, 2010, funds from operations
(FFO), a widely accepted supplemental measure of REIT performance
established by the National Association of Real Estate Investment
Trusts, was $7.8 million, or $0.11 per diluted share, for the Kite
Portfolio compared to $8.7 million, or $0.12 per diluted share, for the
same period in the prior year. The Company’s allocable share of FFO was
$7.0 million for the three months ended December 31, 2010 compared to
$8.0 million for the same period in 2009.
For the twelve months ended December 31, 2010, FFO for the Kite
Portfolio was $30.3 million, or $0.42 per diluted share, compared to
$28.7 million, or $0.48 per diluted share, for the prior year. FFO for
2010 includes the write off of deferred loan fees of $191,000 in
connection with the early payoff of the Company’s unsecured term loan
and FFO for 2009 includes a non-cash impairment charge of $5.4 million.
Excluding the loan fee write-off, 2010 FFO was $0.43 per diluted share.
FFO in 2009, as adjusted for the impairment charge, was $0.57 per
diluted share. While FFO increased $1.6 million between years, FFO per
diluted share declined primarily as a result of the issuance of 28.75
million common shares in the Company’s May 2009 equity offering. The
Company’s allocable share of FFO was $26.9 million for the year ended
December 31, 2010 compared to $24.9 million for 2009, an increase of
$2.0 million.
Given the nature of the Company’s business as a real estate owner and
operator, the Company believes that FFO is helpful to investors when
measuring operating performance because it excludes various items
included in net income that do not relate to or are not indicative of
operating performance, such as gains or losses from sales of operating
properties, and depreciation and amortization, which can make periodic
and peer analyses of operating performance more difficult. The Company
believes presenting FFO in this manner allows investors and other
interested parties to form a more meaningful assessment of the Company’s
operating results. For informational purposes, the Company also has
provided FFO adjusted for the impairment charge recorded in September
2009 and for the write off of deferred loan fees, as discussed above.
The Company believes this supplemental information provides a meaningful
measure of its operating performance. A reconciliation of net income to
FFO is included in the attached table.
The Company’s total revenue for the fourth quarter of 2010 was $25.9
million, down from $29.3 million for the same period in 2009. This
decrease reflects a decline in construction volume of $3.1 million. Net
loss attributable to Kite Realty Group Trust was $1.2 million for the
fourth quarter of 2010 compared to net income in the prior year of $0.6
million. This change is primarily attributable to higher depreciation
expense of $0.9 million and higher interest expense and preferred share
dividends of $0.9 million.
The Company’s total revenue for the twelve months ended December 31,
2010 decreased from $115.3 million to $101.4 million, a decline of $13.9
million, of which $12.6 million related to lower construction volume and
$1.0 million related to reduced gains on land and outlot sales. The net
loss attributable to Kite Realty Group Trust for the year ended December
31, 2010 was $8.6 million, compared to a net loss of $1.8 million in
2009. This change between years reflects increased depreciation expense
of $7.6 million, including $5.2 million recorded in connection with the
2010 redevelopment of three retail properties, higher interest expense
and preferred share dividends totaling $1.6 million and lower net-of-tax
construction margins of $0.9 million. Also influencing the change
between years were the 2009 non-cash impairment charge of $4.8 million
and the $1.5 million gain in 2009 from the consolidation of The Centre
operating property.
John A. Kite, Kite Realty Group’s Chairman and Chief Executive Officer,
said "2010 was a year of significant activity for the company. We leased
over one million square feet during the year which increased our overall
occupancy by over 200 basis points while achieving cash rent spreads of
approximately 5%. We continued to make progress de-levering the Company
by issuing perpetual preferred shares and paying off our unsecured term
loan. We expect our ratio of debt to EBITDA to continue to improve
throughout 2011 as a result of our 2010 leasing efforts. Despite the
difficult environment, we were able to successfully complete Eddy Street
Commons at Notre Dame and our Coral Springs, Florida redevelopment and
add these high-quality projects to the operating portfolio."
Operating Portfolio
Eddy Street Commons at Notre Dame was substantially completed and
transitioned to the operating portfolio. As of the end of the quarter,
the retail component of this property was 85.3% leased following the
execution of an anchor tenant lease with Urban Outfitters, and the
office component was 90.5% leased.
Coral Springs Plaza was also completed and transitioned to the operating
portfolio. The former Circuit City-anchored center in Coral Springs,
Florida was successfully redeveloped and is 100% leased to Toys “R” Us /
Babies “R” Us.
As of December 31, 2010, the Company owned interests in 53 retail
operating properties totaling approximately 8.0 million square feet. The
owned gross leasable area (“GLA”) in the Company’s retail operating
portfolio was 92.2% leased as of December 31, 2010, unchanged from the
end of the prior quarter.
In addition, the Company owns four commercial operating properties as
well as the office component of Eddy Street Commons, totaling 581,400
square feet. As of December 31, 2010, the owned net rentable area of the
commercial operating portfolio was 94.8% leased, compared to 95.5% at
the end of the prior quarter. The combined retail and commercial
operating portfolio leased percentage was unchanged from the previous
quarter at 92.5%.
On a same property basis, the leased percentage of 55 same store
operating properties increased approximately 200 basis points to 92.5%
at December 31, 2010 from 90.6% at December 31, 2009. Same property net
operating income for these properties decreased 0.1% in the fourth
quarter of 2010 compared to the same period in the prior year. Same
property net operating income decreased 1.3% for the full year 2010
compared to 2009.
Leasing Activities
During the fourth quarter of 2010, the Company executed a combined 34
new and renewal leases totaling approximately 189,800 square feet. New
leases were signed with 27 tenants for approximately 162,600 square feet
of GLA. These leases represent a 10.6% positive cash rent spread. A
total of 7 leases for 27,200 square feet were renewed during the
quarter. Five of these renewals were completed at flat or positive rent
spreads. Combined with two negative spread renewals, rental rates for
all renewals decreased approximately 7.7 %.
For the year, the Company executed a combined 138 new and renewal leases
totaling approximately 1.1 million square feet. New leases were signed
with 89 tenants for approximately 543,900 square feet of GLA. These
leases represent a 9.8% positive cash rent spread. A total of 49 leases
for 556,600 square feet were renewed during the year. Rental rates for
these renewals decreased approximately 3.5% compared to previous rents.
Also during the quarter, 12 tenants commenced paying rent, including
anchor tenants Toys “R” Us / Babies “R” Us at Coral Springs Plaza and
Ulta Salon at Boulevard Crossing.
Development Activities
As of December 31, 2010, the Company owned interests in two in-process
development projects that are expected to total approximately 260,700
owned square feet upon completion. The total estimated cost of these
projects is approximately $68.2 million, of which approximately $55.5million
had been incurred as of December 31, 2010. The Company also has four
properties in its redevelopment pipeline representing a total of
approximately 479,200 square feet with an estimated $30.2 million
expected to be spent on redevelopment costs.
During the fourth quarter, the Company commenced construction on its
Rivers Edge redevelopment project. When completed, this property is
expected to contain 127,400 total square feet and include anchor tenants
Nordstrom Rack, Buy Buy Baby, Container Store, Arhaus Furniture and BGI
Fitness.
Construction of Whole Foods at Cobblestone Plaza in Pembroke Pines,
Florida commenced during the fourth quarter, and the tenant is expected
to take possession of the store in the second half of 2011.
During the quarter, construction commenced at South Elgin Commons II
located near Chicago, Illinois. We executed a lease with Toys “R” Us /
Babies “R” Us for 58,000 square feet prior to the end of the quarter,
and with Ross Stores for 25,000 square feet in January 2011. This
128,000 square foot project is currently 100% leased and is anticipated
to open in the fourth quarter of 2011. The Company is in negotiations
for project-specific construction financing for this development.
Non-owned anchor Target Corporation and owned LA Fitness are currently
open and operating.
Financing Activities
In December, the Company issued 2,800,000 shares of its 8.25% Series A
Cumulative Redeemable Perpetual Preferred Stock. The total net proceeds
from the offering were approximately $67.5 million. In conjunction with
the offering, the Company retired its $55 million unsecured term loan
which had a maturity date of July 2011.
The remaining net proceeds and a draw under the Company’s line of credit
were used to pay off the $18.3 million loan encumbering International
Speedway Square in Daytona, Florida. This 230,000 square foot power
center is 94.1% leased and has been temporarily contributed to the
revolving line of credit unencumbered collateral pool. The Company is in
receipt of a term sheet and expects to secure long term financing for
this asset in the first half of 2011.
In October, the Company exercised the one-year extension option on its
$200 million unsecured revolving line of credit. The maturity date for
the facility is now February 2012.
In January 2011, the Company entered into a five-year construction loan
to fund the redevelopment of Rivers Edge in Indianapolis, Indiana. The
floating-rate loan carries an interest rate of LIBOR plus 3.25% through
January 2013 then reduces to LIBOR plus 3.00% through the January 2016
maturity date.
In February 2011, the Company extended the maturity date of a $3.5
million loan on a commercial asset leased to the State of Indiana. The
loan has a new maturity date of February 2014 at a rate of LIBOR plus
3.25%.
Including the activity subsequent to the end of the quarter, the Company
has extended, refinanced, or retired nearly 50% of its 2011 debt
maturities since the end of the third quarter of 2010.
Subsequent Events
On February 11, 2011, the Company acquired a 52,000 square foot, 91.4%
leased retail shopping center in Wilmington, North Carolina. This center
was acquired in an off-market transaction for a purchase price of $3.5
million. This center is anchored by a 46,000 square foot Lowe’s Foods.
This asset was acquired as a redevelopment opportunity.
On February 4, 2011, the Company completed the acquisition of the
remaining 40% interest in The Centre from its joint venture partners and
assumed all leasing and management responsibilities. The Centre is an
81,000 square foot shopping center located in Carmel, Indiana, a suburb
of Indianapolis. The purchase price was approximately $2.3 million,
including the repayment of a $700,000 loan made by the Company.
Distributions
On December 17, 2010, the Board of Trustees declared a quarterly common
share cash distribution of $0.06 per common share for the quarter ended
December 31, 2010 payable to shareholders of record as of January 6,
2011. This distribution was paid on January 13, 2011. The Board of
Trustees anticipates declaring a quarterly cash distribution for the
quarter ending March 31, 2011 later in the first quarter.
On February 15, 2011, the Board of Trustees declared a quarterly
preferred share cash distribution of $0.48697917 per preferred share
covering the distribution period from December 7 to March 1, 2011
payable to shareholders of record as of February 22, 2011. This
distribution will be paid on March 1, 2011.
2011 Earnings Guidance
The Company currently expects FFO for the year ending December 31, 2011
to be within a range of $0.40 to $0.45 per diluted share and diluted net
income (loss) to be within a range of ($0.05) to $0.00 per diluted
common share. Given the nature of the Company’s business as a real
estate owner and operator, the Company believes that FFO is helpful to
investors when measuring operating performance because it excludes
various items included in net income that do not relate to or are not
indicative of operating performance, such as gains or losses from sales
of operating properties and depreciation and amortization, which can
make periodic and peer analyses of operating performance more difficult.
While other factors may impact FFO and net earnings, the Company’s 2011
guidance is based primarily on the following assumptions:
-
Includes the full year $.03 per common share dilutive impact of the
December 2010 perpetual preferred equity offering;
-
Portfolio leased percentage ranging from 92% to 93.5% at December 31,
2011;
-
An increase in same property net operating income ranging from 0.0% to
1.5%;
-
An interest rate environment consistent with the current forward yield
curve for one month LIBOR and the 10-year US Treasury note;
-
Transactional FFO and lease term fees ranging from $0.01 to $0.03 on a
pretax basis;
-
General and administrative expense ranging from approximately $5.7
million to $6.0 million;
- $5 to $25 million of operating property acquisitions; and
-
No material disposition activity.
The Company’s 2011 guidance is also based on a number of other
assumptions, many of which are outside the Company’s control and all of
which are subject to change. The Company may change its guidance as
actual and anticipated results vary from these assumptions.
Following is a reconciliation of the range of 2011 estimated diluted net
income per share to estimated diluted FFO per share:
|
Guidance Range for 2011
|
|
|
|
Low
|
|
|
|
High
|
|
Diluted net income per share
| | | | |
($0.05
|
)
|
|
|
|
$
|
0.00
|
| | | | | | | |
|
|
Depreciation and amortization of consolidated and unconsolidated
entities
| | | |
|
0.45
|
|
|
|
|
|
0.45
|
|
Diluted FFO per share
| | | |
$
|
0.40
|
|
|
|
|
$
|
0.45
|
| | | | | | | | | | |
|
Earnings Conference Call
The Company will conduct a conference call to discuss its financial
results on Thursday, February 17th at 2:00 p.m. eastern time.
A live webcast of the conference call will be available online on the
Company’s website at www.kiterealty.com.
The dial-in numbers are (800) 901-5218 for domestic callers and (617)
786-4511 for international callers (passcode 41383501). In addition, a
telephonic replay of the call will be available until May 17, 2011. The
replay dial-in telephone numbers are (888) 286-8010 for domestic callers
and (617) 801-6888 for international callers (passcode 96076222).
About Kite Realty Group Trust
Kite Realty Group Trust is a full-service, vertically integrated real
estate investment trust engaged in the ownership, operation, management,
leasing, acquisition, construction, redevelopment and development of
neighborhood and community shopping centers in selected markets in the
United States. The Company owns interests in a portfolio of operating
retail properties, retail properties under development and operating
commercial properties.
Safe Harbor
This press release contains certain statements that are not historical
fact and may constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results of
the Company to differ materially from historical results or from any
results expressed or implied by such forward-looking statements,
including, without limitation: national and local economic, business,
real estate and other market conditions, particularly in light of the
recent recession; 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 (“REIT”) for federal income tax purposes;
potential environmental and other liabilities; impairment in the value
of real estate property the Company owns; risks related to the
geographical concentration of our properties in Indiana, Florida and
Texas; and other factors affecting the real estate industry generally.
The Company refers you the documents filed by the Company from time to
time with the Securities and Exchange Commission, specifically the
section titled “Business Risk Factors” in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2009, 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 (including the FFO and net income estimates),
whether as a result of new information, future events or otherwise.
Kite Realty Group Trust
Condensed Consolidated
Balance Sheets
(Unaudited) |
|
| | |
| | |
| | December 31,
2010 | | December 31,
2009 |
| Assets: | | | | | | | | |
|
Investment properties, at cost:
| | | | | | | | |
|
Land
| |
$
|
228,707,073
| | |
$
|
226,506,781
| |
|
Land held for development
| | |
27,384,631
| | | |
27,546,315
| |
|
Buildings and improvements
| | |
780,038,034
| | | |
736,027,845
| |
|
Furniture, equipment and other
| | |
5,166,303
| | | |
5,060,233
| |
|
Construction in progress
| | |
158,636,747
| | | |
176,689,227
| |
| | |
1,199,932,788
| | | |
1,171,830,401
| |
|
Less: accumulated depreciation
| | |
(152,083,936
|
)
| | |
(127,031,144
|
)
|
| | |
1,047,848,852
| | | |
1,044,799,257
| |
|
Cash and cash equivalents
| | |
15,394,528
| | | |
19,958,376
| |
|
Tenant receivables, including accrued straight-line rent of
$9,113,712 and $8,570,069, respectively, net of allowance for
uncollectible accounts
| | |
18,204,215
| | | |
18,537,031
| |
|
Other receivables
| | |
5,484,277
| | | |
9,326,475
| |
|
Investments in unconsolidated entities, at equity
| | |
11,193,113
| | | |
10,799,782
| |
|
Escrow deposits
| | |
8,793,968
| | | |
11,377,408
| |
|
Deferred costs, net
| | |
24,207,046
| | | |
23,703,901
| |
|
Prepaid and other assets
| | |
1,656,746
| | | |
2,183,214
| |
| Total Assets | |
$
|
1,132,782,745
| | |
$
|
1,140,685,444
| |
| | | | | | | |
|
| Liabilities and Equity: | | | | | | | | |
|
Mortgage and other indebtedness
| |
$
|
610,926,613
| | |
$
|
658,294,513
| |
|
Accounts payable and accrued expenses
| | |
32,362,917
| | | |
32,799,351
| |
|
Deferred revenue and other liabilities
| | |
15,399,002
| | | |
19,835,438
| |
| Total Liabilities | | |
658,688,532
| | | |
710,929,302
| |
|
Commitments and contingencies
| | | | | | | | |
|
Redeemable noncontrolling interests in the Operating Partnership
| | |
44,115,028
| | | |
47,307,115
| |
| Equity: | | | | | | | | |
| Kite Realty Group Trust Shareholders’ Equity: | | | | | | | | |
|
Preferred Shares, $.01 par value, 40,000,000 shares authorized,
2,800,000 and no shares issued and outstanding
| | |
70,000,000
| | | |
—
| |
Common Shares, $.01 par value, 200,000,000 shares authorized
63,342,219 shares and 63,062,083 shares issued and outstanding at
December 31, 2010 and December 31, 2009, respectively
| | |
633,422
| | | |
630,621
| |
|
Additional paid in capital
| | |
448,779,180
| | | |
449,863,390
| |
|
Accumulated other comprehensive loss
| | |
(2,900,100
|
)
| | |
(5,802,406
|
)
|
|
Accumulated deficit
| | |
(93,447,581
|
)
| | |
(69,613,763
|
)
|
| Total Kite Realty Group Trust Shareholders’ Equity | | |
423,064,921
| | | |
375,077,842
| |
| Noncontrolling Interests | | |
6,914,264
| | | |
7,371,185
| |
| Total Equity | | |
429,979,185
| | | |
382,449,027
| |
| Total Liabilities and Equity | |
$
|
1,132,782,745
| | |
$
|
1,140,685,444
| |
| | | | | | | |
|
Kite Realty Group Trust
Condensed Consolidated
Statements of Operations
For the Three and Twelve
Months Ended December 31, 2010 and 2009
(Unaudited) |
|
| | |
| | |
| | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| | 2010 |
| 2009 | | 2010 |
| 2009 |
| Revenue: | | | | | | | | | | | | | | | | |
|
Minimum rent
| |
$
|
18,067,685
| | |
$
|
18,000,595
| | |
$
|
71,836,417
| | |
$
|
71,612,415
| |
|
Tenant reimbursements
| | |
4,319,215
| | | |
4,750,543
| | | |
17,666,443
| | | |
18,163,191
| |
|
Other property related revenue
| | |
1,769,649
| | | |
1,678,577
| | | |
5,065,169
| | | |
6,065,708
| |
|
Construction and service fee revenue
| | |
1,746,947
| | | |
4,855,122
| | | |
6,848,073
| | | |
19,450,789
| |
| Total revenue | | |
25,903,496
| | | |
29,284,837
| | | |
101,416,102
| | | |
115,292,103
| |
| Expenses: | | | | | | | | | | | | | | | | |
|
Property operating
| | |
4,887,479
| | | |
4,821,688
| | | |
17,691,738
| | | |
18,188,710
| |
|
Real estate taxes
| | |
2,347,560
| | | |
3,110,577
| | | |
12,044,966
| | | |
12,068,903
| |
|
Cost of construction and services
| | |
1,598,958
| | | |
4,233,332
| | | |
6,142,042
| | | |
17,192,267
| |
|
General, administrative, and other
| | |
1,480,980
| | | |
1,435,172
| | | |
5,372,056
| | | |
5,711,623
| |
|
Depreciation and amortization
| | |
9,290,845
| | | |
8,283,015
| | | |
40,732,228
| | | |
32,148,318
| |
| Total expenses | | |
19,605,822
| | | |
21,883,784
| | | |
81,983,030
| | | |
85,309,821
| |
| Operating income | | |
6,297,674
| | | |
7,401,053
| | | |
19,433,072
| | | |
29,982,282
| |
|
Interest expense
| | |
(7,219,072
|
)
| | |
(6,567,135
|
)
| | |
(28,532,440
|
)
| | |
(27,151,054
|
)
|
|
Income tax (expense) benefit of taxable REIT subsidiary
| | |
(31,932
|
)
| | |
(7,236
|
)
| | |
(265,986
|
)
| | |
22,293
| |
|
Income (loss) from unconsolidated entities
| | |
48,477
| | | |
—
| | | |
(51,964
|
)
| | |
226,041
| |
|
Non-cash gain from consolidation of subsidiary
| | |
—
| | | |
—
| | | |
—
| | | |
1,634,876
| |
|
Other income
| | |
44,985
| | | |
98,191
| | | |
231,178
| | | |
224,927
| |
| (Loss) income from continuing operations | | |
(859,868
|
)
| | |
924,873
| | | |
(9,186,140
|
)
| | |
4,939,365
| |
| Discontinued operations: | | | | | | | | | | | | | | | | |
|
Operating loss from discontinued operations
| | |
—
| | | |
(18,614
|
)
| | |
—
| | | |
(732,621
|
)
|
|
Non-cash loss on impairment of real estate asset
| | |
—
| | | |
—
| | | |
—
| | | |
(5,384,747
|
)
|
| Loss from discontinued operations | | |
—
| | | |
(18,614
|
)
| | |
—
| | | |
(6,117,368
|
)
|
| Consolidated net (loss) income | | |
(859,868
|
)
| | |
906,259
| | | |
(9,186,140
|
)
| | |
(1,178,003
|
)
|
|
Net loss (income) attributable to noncontrolling interests
| | |
74,227
| | | |
(262,982
|
)
| | |
915,310
| | | |
(603,763
|
)
|
|
Dividends on preferred shares
| | |
(376,979
|
)
| | |
—
| | | |
(376,979
|
)
| | |
—
| |
| Net (loss) income attributable to Kite Realty Group Trust | |
$
|
(1,162,620
|
)
| |
$
|
643,277
| | |
$
|
(8,647,809
|
)
| |
$
|
(1,781,766
|
)
|
| | | | | | | | | | | | | | | |
|
| (Loss) income per common share – basic and diluted | | | | | | | | | | | | | | | | |
|
(Loss) income from continuing operations attributable to Kite Realty
Group Trust common shareholders
| |
$
|
(0.02
|
)
| |
$
|
0.01
| | |
$
|
(0.14
|
)
| |
$
|
0.07
| |
|
Loss from discontinued operations attributable to Kite Realty Group
Trust common shareholders
| | |
—
| | | |
(0.00
|
)
| | |
—
| | | |
(0.10
|
)
|
|
Net loss attributable to Kite Realty Group Trust common shareholders
| |
$
|
(0.02
|
)
| |
$
|
0.01
| | |
$
|
(0.14
|
)
| |
$
|
(0.03
|
)
|
| | | | | | | | | | | | | | | |
|
| Weighted average common shares outstanding - basic | | |
63,340,098
| | | |
62,997,180
| | | |
63,240,474
| | | |
52,146,454
| |
| Weighted average common shares outstanding - diluted | | |
63,340,098
| | | |
63,132,990
| | | |
63,240,474
| | | |
52,146,454
| |
| Dividends declared per common share | |
$
|
0.0600
| | |
$
|
0.0600
| | |
$
|
0.2400
| | |
$
|
0.3325
| |
| | | | | | | | | | | | | | | |
|
| (Loss) income attributable to Kite Realty Group Trust common
shareholders: | | | | | | | | | | | | | | | | |
| (Loss) income from continuing operations | |
$
|
(1,162,620
|
)
| |
$
|
665,109
| | |
$
|
(8,647,809
|
)
| |
$
|
3,515,875
| |
| Discontinued operations | | |
—
| | | |
(21,832
|
)
| | |
—
| | | |
(5,297,641
|
)
|
| Net loss attributable to Kite Realty Group Trust | |
$
|
(1,162,620
|
)
| |
$
|
643,277
| | |
$
|
(8,647,809
|
)
| |
$
|
(1,781,766
|
)
|
| | | | | | | | | | | | | | | |
|
Kite Realty Group Trust
Funds From Operations
For
the Three and Twelve Months Ended December 31, 2010 and 2009
(Unaudited) |
|
| | |
| | |
| | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| | 2010 |
| 2009 | | 2010 |
| 2009 |
|
Consolidated net (loss) income1 | |
$
|
(859,868
|
)
| |
$
|
906,259
| | |
$
|
(9,186,140
|
)
| |
$
|
(1,178,003
|
)
|
|
Less dividends on preferred shares
| | |
(376,979
|
)
| | |
—
| | | |
(376,979
|
)
| | |
—
| |
|
Less non-cash gain from consolidation of subsidiary, net of
noncontrolling interests
| | |
—
| | | |
—
| | | |
—
| | | |
(980,926
|
)
|
|
Less net income attributable to noncontrolling interests in
properties
| | |
(20,446
|
)
| | |
(137,333
|
)
| | |
(117,155
|
)
| | |
(879,463
|
)
|
|
Add depreciation and amortization of consolidated entities, net of
noncontrolling interests
| | |
9,069,350
| | | |
7,908,465
| | | |
39,756,493
| | | |
31,601,550
| |
|
Add depreciation and amortization of unconsolidated entities
| | |
28,695
| | | |
—
| | | |
194,131
| | | |
157,623
| |
|
Funds From Operations of the Operating Partnership2 | | |
7,840,752
| | | |
8,677,391
| | | |
30,270,350
| | | |
28,720,781
| |
|
Less redeemable noncontrolling interests in Funds From Operations
| | |
(869,391
|
)
| | |
(675,265
|
)
| | |
(3,359,076
|
)
| | |
(3,848,585
|
)
|
|
Funds From Operations allocable to the Company2 | |
$
|
6,971,361
| | |
$
|
8,002,126
| | |
$
|
26,911,274
| | |
$
|
24,872,196
| |
| | | | | | | | | | | | | | | |
|
|
Basic FFO per share of the Operating Partnership
| |
$
|
0.11
| | |
$
|
0.12
| | |
$
|
0.43
| | |
$
|
0.48
| |
|
Diluted FFO per share of the Operating Partnership
| |
$
|
0.11
| | |
$
|
0.12
| | |
$
|
0.42
| | |
$
|
0.48
| |
| | | | | | | | | | | | | | | |
|
|
Funds From Operations of the Operating Partnership
| |
$
|
7,840,752
| | |
$
|
8,677,391
| | |
$
|
30,270,350
| | |
$
|
28,720,781
| |
|
Add back: Non-cash loss on impairment of real estate asset
| | |
—
| | | |
—
| | | |
—
| | | |
5,384,747
| |
|
Funds From Operations of the Operating Partnership excluding
non-cash loss on impairment of real estate asset
| |
$
|
7,840,752
| | |
$
|
8,677,391
| | |
$
|
30,270,350
| | |
$
|
34,105,528
| |
|
Basic FFO per share of the Operating Partnership (excluding non-cash
loss on impairment of real estate asset)3 | |
$
|
0.11
| | |
$
|
0.12
| | |
$
|
0.43
| | |
$
|
0.57
| |
|
Diluted FFO per share of the Operating Partnership (excluding
non-cash loss on impairment of real estate asset)3 | |
$
|
0.11
| | |
$
|
0.12
| | |
$
|
0.42
| | |
$
|
0.57
| |
| | | | | | | | | | | | | | | |
|
|
Basic weighted average Common Shares outstanding
| | |
63,340,098
| | | |
62,997,180
| | | |
63,240,474
| | | |
52,146,454
| |
|
Diluted weighted average Common Shares outstanding
| | |
63,641,410
| | | |
63,132,990
| | | |
63,490,597
| | | |
52,239,335
| |
|
Basic weighted average Common Shares and Units outstanding
| | |
71,199,356
| | | |
71,038,551
| | | |
71,166,137
| | | |
60,194,986
| |
|
Diluted weighted average Common Shares and Units outstanding
| | |
71,500,669
| | | |
71,174,361
| | | |
71,416,260
| | | |
60,287,866
| |
| | | | | | | | | | | | | | | |
|
|
____________________
|
|
1
|
|
Includes non-cash loss on impairment of real estate asset of
$5,384,747 for the twelve months ended December 31, 2009.
|
| |
|
|
2
| |
“Funds From Operations of the Operating Partnership” measures 100%
of the operating performance of the Operating Partnership’s real
estate properties and construction and service subsidiaries in which
the Company owns an interest. “Funds From Operations allocable to
the Company” reflects a reduction for the redeemable noncontrolling
weighted average diluted interest in the Operating Partnership.
|
| |
|
|
3
| |
The Company believes the supplemental presentation of Funds from
Operations of the Operating Partnership excluding the non-cash loss
on the impairment of a real estate asset provides useful information
to investors regarding its financial condition and results of
operations because the measure provides investors with useful
comparative information about the recurring operating performance of
its core real estate portfolio presented on the same basis as prior
periods. The Company also believes the presentation of this measure
provides an investor with the ability to meaningfully assess the
operating performance of its portfolio (e.g., an assessment
of the amount of revenue and operating expenses a property is
experiencing) in a clear and concise manner. Further, the Company
believes that this measure allows investors to make a meaningful
comparison of its operations compared with its peer real estate
investment trusts.
|
Source: Kite Realty Group Trust
Contact:
Kite Realty Group Trust
Dan Sink, Chief Financial Officer,
317-577-5609
dsink@kiterealty.com
or
Investors/Media:
Adam
Chavers, Vice President of Investor Relations, 317-713-5684
achavers@kiterealty.com