Highlights
Operations
- Funds From Operations was $0.12 per diluted common share for the
fourth quarter of 2011 and $0.44 per diluted common share for the year
ended December 31, 2011.
- Same Property Net Operating Income for the fourth quarter of 2011
increased 5.7% over the prior year and 3.7% for the full year 2011
compared to 2010.
- Executed 37 new and renewal leases for 177,200 square feet during
the quarter for aggregate cash rent spreads of 6.6%.
- Executed 156 new and renewal leases for 842,000 square feet during
2011 for aggregate cash rent spreads of 6.4%.
- Average annualized retail operating portfolio rents per square foot
grew 3.3% from the previous quarter.
- Revenue from property operations increased 13.8% in the fourth
quarter over the prior year.
Development
- Substantially completed Cobblestone Plaza (FL) development and
Rivers Edge (IN) redevelopment and transitioned both to the operating
portfolio.
- Transitioned Four Corner/Maple Valley in Seattle, Washington to
in-process development with a pre-leased percentage of 81%.
- Transitioned New Hill Place Phase I in Raleigh, North Carolina to
in-process development with a pre-leased percentage of 65%.
Balance Sheet
- Closed on a $62 million construction loan for the Company’s Delray
Marketplace development project.
- Including events occurring subsequent to year-end, the Company’s
2012 debt maturities are $31.2 million on two properties.
- The Company completed $413 million of financing related activities
in 2011.
INDIANAPOLIS--(BUSINESS WIRE)--
Kite Realty Group Trust (NYSE: KRG) (the “Company”) today announced
results for its fourth quarter ended December 31, 2011. Financial
statements and exhibits attached to this release include results for the
three and twelve months ended December 31, 2011 and 2010.
Financial and Operating Results
For the three months ended December 31, 2011, funds from operations
(“FFO”), a widely accepted supplemental measure of REIT performance
established by the National Association of Real Estate Investment
Trusts, was $8.6 million, or $0.12 per diluted share, for the Kite
Portfolio compared to $7.8 million, or $0.11 per diluted share, for the
same period in the prior year. The Company’s allocable share of FFO was
$7.6 million for the three months ended December 31, 2011 compared to
$7.0 million for the same period in 2010.
For the twelve months ended December 31, 2011, FFO was $31.8 million, or
$0.44 per diluted share, for the Kite Portfolio compared to $30.3
million, or $0.42 per diluted share, for the same period in the prior
year. The Company’s allocable share of FFO was $28.3 million for the
twelve months ended December 31, 2011 compared to $26.9 million for the
same period in 2010.
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 or loss that do not relate to or are not
indicative of operating performance, such as gains or losses from sales
and impairments 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. A
reconciliation of net income to FFO is included in the attached table.
Net income attributable to common shareholders was $3.1 million for the
fourth quarter of 2011 compared to a net loss in the prior year of $1.2
million. This change is primarily attributable to the Company’s share of
a $4.3 million gain on the sale in the current quarter of a property
owned in a joint venture. The Company’s total revenue for the fourth
quarter of 2011 was $26.7 million, an increase from $25.9 million for
the same period in 2010. This increase is due to an improvement in
revenue from recurring property operations of $3.1 million, or 13.8%, as
a result of improved occupancy levels and development tenants opening
for business. Partially offsetting this increase was a planned decline
in construction volume of $1.6 million and lower gains on land sales of
$0.9 million.
Net loss attributable to common shareholders was $0.8 million for 2011
compared to a net loss in the prior year of $8.6 million. This change is
primarily attributable to a decrease of $3.7 million in depreciation and
amortization expense due to accelerated depreciation taken in the prior
year on certain redevelopment properties along with the Company’s share
of the gain on the 2011 sale of a joint venture property of $4.3
million. The Company’s total revenue for 2011 was $101.9 million, an
increase from $101.4 million for 2010. Revenue from recurring property
operations increased $7.8 million, or 8.7%, for 2011 compared to 2010.
Offsetting this increase was a planned decline in construction volume of
$6.5 million and lower gains on land sales of $2.4 million.
John A. Kite, Kite Realty Group’s Chairman and Chief Executive Officer,
said "In 2011, our strong operating platform and well located real
estate performed at a very high level which produced approximately 14%
growth in revenue from property operations in the fourth quarter. Our
asset management, leasing, and development teams produced strong same
property NOI results and delivered highly leased, quality assets. I am
pleased with our perseverance and progress on our development pipeline
and look forward to continuing to utilize our value-added platform."
Operating Portfolio
Rivers Edge was substantially completed and transitioned to the
operating portfolio. This Indianapolis, Indiana center was successfully
redeveloped and is 100% leased. The center is anchored by Nordstrom
Rack, The Container Store, and buy buy Baby. Additional anchors Arhaus
Furniture and an expanded BGI Fitness are projected to open in mid-2012.
Cobblestone Plaza in Fort Lauderdale, Florida was substantially
completed and transitioned to the operating portfolio. As of December
31, 2011, this Whole Foods-anchored center was 92.2% leased.
As of December 31, 2011, the Company owned interests in 54 retail
operating properties totaling approximately 8.4 million square feet. The
owned gross leasable area (“GLA”) in the Company’s retail operating
portfolio was 93.3% leased as of December 31, 2011, compared to 92.2%
leased as of December 31, 2010.
In addition, the Company owns four operating commercial properties
totaling 580,800 square feet. As of December 31, 2011, the owned net
rentable area of the commercial operating portfolio was 93.3% leased.
The combined leased percentage for the retail and commercial operating
portfolios was 93.3% as of December 31, 2011.
On a same property basis, the leased percentage of 52 same store
operating properties increased 0.4% to 93.0% at December 31, 2011 from
92.6% at December 31, 2010. Same property net operating income for these
properties increased 5.7% in the fourth quarter of 2011 compared to the
same period in the prior year. Same property net operating income
increased 3.7% for the full year 2011 compared to 2010.
Leasing Activities
During the fourth quarter of 2011, the Company executed 37 new and
renewal leases totaling approximately 177,200 square feet with aggregate
cash rent spreads of 6.6%. New leases were signed with 16 tenants for
approximately 132,900 square feet of GLA. These leases represent a 7.5%
positive cash rent spread. A total of 21 leases for 44,300 square feet
were renewed during the quarter with a 4.8% positive cash rent spread.
For the year, the Company executed 156 new and renewal leases totaling
842,200 square feet. New leases were signed with 81 tenants for 491,600
square feet of GLA. These leases represent an 8.6% positive cash rent
spread. A total of 75 leases for 350,600 were renewed during the year
for a positive cash rent spread of 2.9%.
Also during the quarter, 13 new tenants commenced paying rent, including
anchor tenants Toys “R” Us and Ross Stores at South Elgin Commons and
The Container Store at Rivers Edge.
Development Activities
As of December 31, 2011, the Company owned interests in five in-process
development/redevelopment projects. The total estimated cost of these
projects is approximately $183.7 million, of which approximately $84.1
million had been incurred. Development highlights for the quarter
include the following:
-
Commenced construction at the Company’s Delray Marketplace development
in Delray Beach, Florida, in December. The leased or committed
percentage of this property was 72% as of December 31, 2011.
- Transitioned Four Corner/Maple Valley in Seattle, Washington to an
in-process development with the execution of leases with three anchor
tenants. This project was 81% pre-leased as of December 31, 2011 with
vertical construction scheduled to commence in the first quarter of
2012 upon securing construction financing.
-
Transitioned New Hill Place Phase I in Raleigh, North Carolina to an
in-process development project. This project was 65% pre-leased as of
December 31, 2011 with vertical construction scheduled to commence in
the first quarter of 2012 upon securing construction financing.
-
Scheduled to open Whole Foods at the Company’s Oleander Pointe
redevelopment in Wilmington, North Carolina, in May 2012. The property
was 86% pre-leased as of December 31, 2011.
-
Commenced construction of a single-tenant property in Indianapolis,
Indiana that is leased to Walgreen’s. The Company closed on a $4.7
million construction loan to fund a majority of the construction
costs. This project is expected to be completed in the third quarter
of 2012.
Financing Activities
During the fourth quarter and through the date of this release, the
Company completed the following financing activities:
-
Closed on a $62 million construction loan for the Company’s Delray
Marketplace project. The loan bears an interest rate of LIBOR plus 175
to 200 basis points and has a three year term with an option to extend
for an additional two years. At closing, the Company paid off the
previous $4.7 million land loan on this property.
-
Closed on a five-year $16.8 million loan with an all-in rate of 3.60%
secured by the Eastgate Pavilion property and retired the previous
loan that was scheduled to mature in April 2012.
-
Exercised the one-year extension option on the $20.4 million variable
rate mortgage on Gateway Shopping Center in Marysville, Washington,
which will extend the maturity date to October 31, 2012. The Company
is marketing this asset for sale.
-
Retired the $24.7 million fixed-rate mortgage secured by Plaza at
Cedar Hill in January with a temporary draw on its line of credit. The
Company intends to secure long term financing on this asset in the
first half of 2012.
As a result of these activities, the Company has $31.2 million of debt
maturing in 2012 relating to our Gateway Shopping Center and Fox Lake
Crossing shopping centers.
Distributions
On December 22, 2011, the Board of Trustees declared a quarterly common
share cash distribution of $0.06 per common share for the quarter ended
December 31, 2011 payable to shareholders of record as of January 6,
2012. This distribution was paid on January 13, 2012. The Board of
Trustees anticipates declaring a quarterly cash distribution for the
quarter ending March 31, 2012 later in the first quarter.
On February 8, 2012, the Board of Trustees declared a quarterly
preferred share cash distribution of $0.515625 per preferred share
covering the distribution period from December 2, 2011 to March 1, 2012
payable to shareholders of record as of February 21, 2012. This
distribution will be paid on March 1, 2012.
2012 Earnings Guidance
The Company currently expects FFO for the year ended December 31, 2012
to be within a range of $0.42 to $0.46 per diluted share and net loss to
be within a range of $(0.03) to $(0.07) per diluted common share. The
Company’s guidance is impacted by the disposition of certain assets to
generate liquidity and reduce outstanding indebtedness. 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 and impairments 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 2012
guidance is based primarily on the following assumptions:
-
The disposition of three to five properties with gross proceeds
between $55-$65 million, which results in a $0.03 to $0.04 reduction
in FFO per diluted share;
- $0.01 reduction of the non-cash rent related to market lease
amortization;
- $80 million of floating-rate construction debt fixed throughout 2012
at a 5% rate;
-
Full year effect of the additional interest expense related to the $82
million ten-year secured financing at 5.44% on six assets of
approximately $0.03;
-
Portfolio leased percentage ranging from 93% to 94% at December 31,
2012;
-
A year over year increase of 1.0% to 2.0% in same property net
operating income as compared to the prior year;
-
Transactional FFO and lease termination fees ranging from $0.01 to
$0.03 per share; and
-
General and administrative expense ranging from approximately $6.5
million to $6.8 million.
The Company’s 2012 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. The
Company’s guidance excludes any potential transaction costs.
Following is a reconciliation of the range of 2012 estimated diluted net
loss per share to estimated diluted FFO per share:
| Guidance Range for 2012
|
|
|
|
|
|
| Low |
|
| High |
| | | | | | | | | |
|
|
Net loss per diluted common share
| | | | | | |
$
|
(0.07
|
)
| | |
$
|
(0.03
|
)
|
|
Depreciation and amortization
| | | | | | |
|
0.49
|
| | |
|
0.49
|
|
|
FFO per diluted common share
| | | | | | |
$
|
0.42
|
| | |
$
|
0.46
|
|
| | | | | | | | | |
|
Earnings Conference Call
The Company will conduct a conference call to discuss its financial
results on Thursday, February 9th at 1:00 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 (866) 271-0675 for domestic callers and (617)
213-8892 for international callers (passcode 37711703). In addition, a
telephonic replay of the call will be available until May 13, 2012. The
replay dial-in telephone numbers are (888) 286-8010 for domestic callers
and (617) 801-6888 for international callers (passcode 37729186).
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. At December 31, 2011, the Company owned interests in a
portfolio of 63 operating and redevelopment properties totaling
approximately 9.0 million square feet and an additional three properties
currently under development totaling 0.6 million square feet.
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 “Risk Factors” in the Company’s Annual Report on Form
10-K for the year ended December 31, 2010, 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 Consolidated Balance Sheets (Unaudited) |
|
|
| | | | | | | | |
|
| | | | | December 31,
2011 | | | December 31,
2010 | |
| Assets: | | | | | | | | | | | |
|
Investment properties, at cost:
| | | | | | | | | | | |
|
Land
| | | | |
$
|
238,129,092
| | |
$
|
228,707,073
| |
|
Land held for development
| | | | | |
36,977,501
| | | |
27,384,631
| |
|
Buildings and improvements
| | | | | |
845,173,680
| | | |
780,038,034
| |
|
Furniture, equipment and other
| | | | | |
5,474,403
| | | |
5,166,303
| |
|
Construction in progress
| | | | | |
147,973,380
| | | |
158,636,747
| |
| | | | | |
1,273,728,056
| | | |
1,199,932,788
| |
|
Less: accumulated depreciation
| | | | | |
(178,006,632
|
)
| | |
(152,083,936
|
)
|
| | | | | |
1,095,721,424
| | | |
1,047,848,852
| |
|
Cash and cash equivalents
| | | | | |
10,042,450
| | | |
15,394,528
| |
|
Tenant receivables, including accrued straight-line rent of
$11,398,347 and $9,113,712, respectively, net of allowance for
uncollectible accounts
| | | | | |
20,413,671
| | | |
18,204,215
| |
|
Other receivables
| | | | | |
2,978,225
| | | |
5,484,277
| |
|
Investments in unconsolidated entities, at equity
| | | | | |
21,646,443
| | | |
11,193,113
| |
|
Escrow deposits
| | | | | |
9,424,986
| | | |
8,793,968
| |
|
Deferred costs, net
| | | | | |
31,079,129
| | | |
24,207,046
| |
|
Prepaid and other assets
| | | | | |
1,959,790
| | | |
1,656,746
| |
| Total Assets | | | | |
$
|
1,193,266,118
| | |
$
|
1,132,782,745
| |
| | | | | | | | | | |
|
| Liabilities and Equity: | | | | | | | | | | | |
|
Mortgage and other indebtedness
| | | | |
$
|
689,122,933
| | |
$
|
610,926,613
| |
|
Accounts payable and accrued expenses
| | | | | |
36,048,324
| | | |
32,362,917
| |
|
Deferred revenue and other liabilities
| | | | | |
12,636,228
| | | |
15,399,002
| |
| Total Liabilities | | | | | |
737,807,485
| | | |
658,688,532
| |
|
Commitments and contingencies
| | | | | | | | | | | |
|
Redeemable noncontrolling interests in the Operating Partnership | | | | | |
41,836,613
| | | |
44,115,028
| |
| Equity: | | | | | | | | | | | |
| Kite Realty Group Trust Shareholders’ Equity: | | | | | | | | | | | |
|
Preferred Shares, $.01 par value, 40,000,000 shares authorized,
2,800,000 shares issued and outstanding at December 31, 2011 and
December 31, 2010, respectively
| | | | | |
70,000,000
| | | |
70,000,000
| |
|
Common Shares, $.01 par value, 200,000,000 shares authorized
63,617,019 shares and 63,342,219 shares issued and outstanding at
December 31, 2011 and December 31, 2010, respectively
| | | | | |
636,170
| | | |
633,422
| |
|
Additional paid in capital
| | | | | |
449,763,528
| | | |
448,779,180
| |
|
Accumulated other comprehensive loss
| | | | | |
(1,524,095
|
)
| | |
(2,900,100
|
)
|
|
Accumulated deficit
| | | | | |
(109,504,068
|
)
| | |
(93,447,581
|
)
|
| Total Kite Realty Group Trust Shareholders’ Equity | | | | | |
409,371,535
| | | |
423,064,921
| |
| Noncontrolling Interests | | | | | |
4,250,485
| | | |
6,914,264
| |
| Total Equity | | | | | |
413,662,020
| | | |
429,979,185
| |
| Total Liabilities and Equity | | | | |
$
|
1,193,266,118
| | |
$
|
1,132,782,745
| |
| | | | | | | | | | |
|
|
|
|
|
| | |
|
| | |
| | | | | | | | | |
|
Kite Realty Group Trust Consolidated Statements of Operations For the Three and Twelve Months Ended December 31, 2011 and 2010 (Unaudited) |
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | Three Months Ended
December 31, | | | | Twelve Months Ended
December 31, | |
| | | | | 2011 | |
| 2010 | | | | 2011 | |
| 2010 | |
| Revenue: | | | | | | | | | | | | | | | | | | | | |
|
Minimum rent
| | | | |
$
|
20,174,665
| | |
$
|
18,067,685
| | | |
$
|
77,019,425
| | |
$
|
71,836,417
| |
|
Tenant reimbursements
| | | | | |
5,294,063
| | | |
4,319,215
| | | | |
20,264,222
| | | |
17,666,443
| |
|
Other property related revenue
| | | | | |
1,097,401
| | | |
1,769,649
| | | | |
4,252,623
| | | |
5,065,169
| |
|
Construction and service fee revenue
| | | | | |
106,285
| | | |
1,746,947
| | | | |
373,105
| | | |
6,848,073
| |
| Total revenue | | | | | |
26,672,414
| | | |
25,903,496
| | | | |
101,909,375
| | | |
101,416,102
| |
| Expenses: | | | | | | | | | | | | | | | | | | | | |
|
Property operating
| | | | | |
4,667,749
| | | |
4,887,479
| | | | |
18,607,865
| | | |
17,691,738
| |
|
Real estate taxes
| | | | | |
3,387,794
| | | |
2,347,560
| | | | |
13,828,995
| | | |
12,044,966
| |
|
Cost of construction and services
| | | | | |
9,092
| | | |
1,598,958
| | | | |
309,074
| | | |
6,142,042
| |
|
General, administrative, and other
| | | | | |
1,619,726
| | | |
1,480,980
| | | | |
6,284,397
| | | |
5,372,056
| |
|
Depreciation and amortization
| | | | | |
9,201,670
| | | |
9,290,845
| | | | |
37,068,830
| | | |
40,732,228
| |
| Total expenses | | | | | |
18,886,031
| | | |
19,605,822
| | | | |
76,099,161
| | | |
81,983,030
| |
| Operating income | | | | | |
7,786,383
| | | |
6,297,674
| | | | |
25,810,214
| | | |
19,433,072
| |
|
Interest expense
| | | | | |
(6,981,496
|
)
| | |
(7,219,072
|
)
| | | |
(25,291,512
|
)
| | |
(28,532,440
|
)
|
|
Income tax benefit/(expense) of taxable REIT subsidiary
| | | | | |
74,022
| | | |
(31,932
|
)
| | | |
1,294
| | | |
(265,986
|
)
|
|
Income/(loss) from unconsolidated entities
| | | | | |
89,181
| | | |
48,477
| | | | |
333,628
| | | |
(51,964
|
)
|
|
Gain on sale of unconsolidated property, net
| | | | | |
4,320,155
| | | |
—
| | | | |
4,320,155
| | | |
—
| |
|
Other income
| | | | | |
25,410
| | | |
44,985
| | | | |
208,870
| | | |
231,178
| |
| Income (loss) from continuing operations | | | | | |
5,313,655
| | | |
(859,868
|
)
| | | |
5,382,649
| | | |
(9,186,140
|
)
|
|
Discontinued operations – loss on sale of operating property
| | | | | |
(397,909
|
)
| | |
—
| | | | |
(397,909
|
)
| | |
—
| |
| Consolidated net income/(loss) | | | | | |
4,915,746
| | | |
(859,868
|
)
| | | |
4,984,740
| | | |
(9,186,140
|
)
|
|
Net (income)/loss attributable to noncontrolling interests
| | | | | |
(414,434
|
)
| | |
74,227
| | | | |
(3,466
|
)
| | |
915,310
| |
| Net income (loss) attributable to Kite Realty Group Trust | | | | | |
4,501,312
| | | |
(785,641
|
)
| | | |
4,981,274
| | | |
(8,270,830
|
)
|
|
Dividends on preferred shares
| | | | | |
(1,443,750
|
)
| | |
(376,979
|
)
| | | |
(5,775,000
|
)
| | |
(376,979
|
)
|
| Net income (loss) attributable to common shareholders | | | | |
$
|
3,057,562
| | |
$
|
(1,162,620
|
)
| | |
$
|
(793,726
|
)
| |
$
|
(8,647,809
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
| Net income (loss) per common share attributable to Kite Realty
Group Trust common shareholders – basic and diluted | | | | | | | | | | | | | | | | | | | | |
|
Income (loss) from continuing operations attributable to common
shareholders
| | | | |
$
|
0.05
| | |
$
|
(0.02
|
)
| | |
$
|
(0.01
|
)
| |
$
|
(0.14
|
)
|
|
Loss from discontinued operations attributable to common shareholders
| | | | | |
(0.00
|
)
| | |
—
| | | | |
(0.00
|
)
| | |
—
| |
|
Net income (loss) attributable to common shareholders
| | | | |
$
|
0.05
| | |
$
|
(0.02
|
)
| | |
$
|
(0.01
|
)
| |
$
|
(0.14
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
| Weighted average common shares outstanding – basic | | | | | |
63,613,728
| | | |
63,340,098
| | | | |
63,557,322
| | | |
63,240,474
| |
| Weighted average common shares outstanding - diluted | | | | | |
71,696,106
| | | |
63,340,098
| | | | |
63,557,322
| | | |
63,240,474
| |
| Dividends declared per common share | | | | |
$
|
0.06
| | |
$
|
0.06
| | | |
$
|
0.24
| | |
$
|
0.24
| |
| | | | | | | | | | | | | | | | | | | |
|
| Income (loss) attributable to Kite Realty Group Trust common
shareholders: | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | | | |
$
|
3,411,876
| | |
$
|
(1,162,620
|
)
| | |
$
|
(439,412
| ) | |
$
|
(8,647,809
| ) |
| Discontinued operations | | | | | |
(354,314
|
)
| | |
—
| | | | |
(354,314
| ) | | |
—
| |
| Net income (loss) attributable to Kite Realty Group Trust common
shareholders | | | | |
$
|
3,057,562
| | |
$
|
(1,162,620
|
)
| | |
$
|
(793,726
| ) | |
$
|
(8,647,809
| ) |
| | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
| | |
|
| | |
| | | | | | | | | |
|
Kite Realty Group Trust Funds From Operations For the Three and Twelve Months Ended December 31, 2011 and 2010 (Unaudited) |
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | Three Months Ended
December 31, | | | | Twelve Months Ended
December 31, | |
| | | | | 2011 | |
| 2010 | | | | 2011 | |
| 2010 | |
|
Consolidated net income / (loss)
| | | | |
$
|
4,915,746
| | |
$
|
(859,868
|
)
| | |
$
|
4,984,740
| | |
$
|
(9,186,140
|
)
|
|
Less dividends on preferred shares
| | | | | |
(1,443,750
|
)
| | |
(376,979
|
)
| | | |
(5,775,000
|
)
| | |
(376,979
|
)
|
|
Less net income attributable to noncontrolling interests in
properties
| | | | | |
(38,244
|
)
| | |
(20,446
|
)
| | | |
(101,069
|
)
| | |
(117,155
|
)
|
|
Add loss on sale of operating property
| | | | | |
397,909
| | | |
—
| | | | |
397,909
| | | |
—
| |
|
Less gain on sale of unconsolidated property, net
| | | | | |
(4,320,155
|
)
| | |
—
| | | | |
(4,320,155
|
)
| | |
—
| |
|
Add depreciation and amortization of consolidated entities, net of
noncontrolling interests
| | | | | |
9,054,424
| | | |
9,098,045
| | | | |
36,577,580
| | | |
39,950,624
| |
|
Funds From Operations of the Kite Portfolio1 | | | | | |
8,565,930
| | | |
7,840,752
| | | | |
31,764,005
| | | |
30,270,350
| |
|
Less redeemable noncontrolling interests in Funds From Operations
| | | | | |
(942,252
|
)
| | |
(869,391
|
)
| | | |
(3,494,040
|
)
| | |
(3,359,076
|
)
|
|
Funds From Operations allocable to the Company1 | | | | |
$
|
7,623,678
| | |
$
|
6,971,361
| | | |
$
|
28,269,965
| | |
$
|
26,911,274
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Basic FFO per share of the Kite Portfolio
| | | | |
$
|
0.12
| | |
$
|
0.11
| | | |
$
|
0.44
| | |
$
|
0.43
| |
|
Diluted FFO per share of the Kite Portfolio
| | | | |
$
|
0.12
| | |
$
|
0.11
| | | |
$
|
0.44
| | |
$
|
0.42
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Basic weighted average Common Shares outstanding
| | | | | |
63,613,728
| | | |
63,340,098
| | | | |
63,557,322
| | | |
63,240,474
| |
|
Diluted weighted average Common Shares outstanding
| | | | | |
63,852,565
| | | |
63,641,410
| | | | |
63,828,582
| | | |
63,490,597
| |
|
Basic weighted average Common Shares and Units outstanding
| | | | | |
71,457,269
| | | |
71,199,356
| | | | |
71,406,505
| | | |
71,166,137
| |
|
Diluted weighted average Common Shares and Units outstanding
| | | | | |
71,696,106
| | | |
71,500,669
| | | | |
71,677,765
| | | |
71,416,260
| |
| | | | | | | | | | | | | | | | | | | |
|
|
____________________
|
|
1
|
|
“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.
|
| |
|
|
|
|
|
| | |
|
| | |
| | | | | | | | | |
|
Kite Realty Group Trust Same Property Net Operating Income For the Three and Twelve Months Ended December 31, 2011 and 2010 (Unaudited) |
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | Three Months Ended December 31, | | | | Twelve Months Ended December 31, | |
| | | | | 2011 | |
| 2010 | |
| % Change | | | | 2011 | |
| 2010 | |
| % Change | |
|
Number of properties at period end1 | | | | | |
52
| | | |
52
| | | | | | | |
52
| | | |
52
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Leased percentage at period-end
| | | | | |
93.0%
| | | |
92.6%
| | | | | | | |
93.0%
| | | |
92.6%
| | | | |
|
Minimum rent
| | | | |
$
|
16,740,686
| | |
$
|
16,237,150
| | | | | | |
$
|
66,861,417
| | |
$
|
65,393,382
| | | | |
|
Tenant recoveries
| | | | | |
4,082,673
| | | |
3,953,498
| | | | | | | |
16,763,021
| | | |
16,254,231
| | | | |
|
Other income
| | | | | |
1,061,788
| | | |
1,134,904
| | | | | | | |
1,248,617
| | | |
1,257,744
| | | | |
| | | | | |
21,885,147
| | | |
21,325,552
| | | | | | | |
84,873,055
| | | |
82,905,357
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Property operating expenses
| | | | | |
4,094,458
| | | |
4,842,809
| | | | | | | |
16,276,930
| | | |
16,459,497
| | | | |
|
Real estate taxes
| | | | | |
2,729,037
| | | |
2,238,111
| | | | | | | |
11,098,536
| | | |
11,016,632
| | | | |
| | | | | |
6,823,495
| | | |
7,080,920
| | | | | | | |
27,375,466
| | | |
27,476,129
| | | | |
| | | | | |
| | | |
| | | | | | | |
| | | |
| | | | |
| Net operating income – same properties (52 properties)2 | | | | | | 15,061,652 | | | | 14,244,632 | | | 5.7 | % | | | | 57,497,589 | | | | 55,429,228 | | | 3.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Reconciliation to Most Directly Comparable GAAP Measure: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net operating income – same properties
| | | | |
$
|
15,061,652
| | |
$
|
14,244,632
| | | | | | |
$
|
57,497,589
| | |
$
|
55,429,228
| | | | |
|
Other income (expense), net
| | | | | |
(10,560,340
|
)
| | |
(15,030,273
|
)
| | | | | | |
(52,516,315
|
)
| | |
(63,700,058
|
)
| | | |
|
Dividends on preferred shares
| | | | | |
(1,443,750
|
)
| | |
(376,979
|
)
| | | | | | |
(5,775,000
|
)
| | |
(376,979
|
)
| | | |
|
Net income (loss) attributable to common shareholders
| | | | |
$
|
3,057,562
| | |
$
|
(1,162,620
|
)
| | | | | |
$
|
(793,726
|
)
| |
$
|
(8,647,809
|
)
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
____________________
|
|
1
|
|
Same Property analysis excludes Courthouse Shadows, The Centre and
Bolton Plaza properties as the Company pursues redevelopment of
these properties.
|
| |
|
|
2
| |
Same Property net operating income is considered a non-GAAP measure
because it excludes net gains from outlot sales, write offs of
straight-line rent and lease intangibles, bad debt expense and
related recoveries, lease termination fees and significant prior
year expense recoveries and adjustments, if any.
|
| |
|
The Company believes that Net Operating Income (“NOI”) is helpful to
investors as a measure of its operating performance because it excludes
various items included in net income that do not relate to or are not
indicative of its operating performance, such as depreciation and
amortization, interest expense, and impairment, if any. The Company
believes that Same Property NOI is helpful to investors as a measure of
its operating performance because it includes only the NOI of properties
that have been owned for the full period presented, which eliminates
disparities in net income due to the redevelopment, acquisition or
disposition of properties during the particular period presented, and
thus provides a more consistent metric for the comparison of the
Company's properties. Same Property NOI should not, however, be
considered as alternatives to net income (calculated in accordance with
GAAP) as indicators of the Company's financial performance.
Kite Realty Group Trust
Dan Sink, Chief Financial Officer,
317-577-5609
dsink@kiterealty.com
or
Investors/Media:
David
Buell, Manager, Financial Reporting, 317-713-5647
dbuell@kiterealty.com
Source: Kite Realty Group Trust