Highlights
Operations/Leasing
- Funds From Operations, as adjusted, was $0.11 per diluted common
share for the second quarter of 2012 excluding the accelerated write
off of deferred financing costs. Including this charge, FFO was $0.10
per diluted common share.
- Revenue from recurring property operations increased 5.9% over the
prior year.
- Same Property Net Operating Income increased 2.4% for the quarter
and 3.9% for the first six months.
- Executed 39 comparable new and renewal leases for 233,500 square
feet during the quarter for aggregate cash rent spreads of 14.6%.
- Signed lease with organic grocery Earth Fare to anchor Rangeline
Crossing (formerly The Centre) and commenced redevelopment on the
property.
Acquisitions and Dispositions
- Acquired Cove Center, a Publix-anchored shopping center in Stuart,
Florida for $22.1 million.
- Sold South Elgin Commons in Chicago, Illinois for a sales price of
$25.0 million.
- In July, acquired a Publix-anchored shopping center in Vero Beach,
Florida for $15.2 million.
Balance Sheet
- Closed on $125 million, seven-year unsecured term loan with an
initial composite interest rate of 4.12% inclusive of an interest rate
hedge.
- Extended weighted average term of the Company’s debt portfolio from
4.2 years to 5.3 years.
INDIANAPOLIS--(BUSINESS WIRE)--
Kite Realty Group Trust (NYSE: KRG) (the “Company”) today announced
results for its second quarter ended June 30, 2012. Financial statements
and exhibits attached to this release include results for the three and
six months ended June 30, 2012 and 2011.
Financial and Operating Results
For the three months ended June 30, 2012, funds from operations (FFO), a
widely accepted supplemental measure of REIT performance established by
the National Association of Real Estate Investment Trusts, was $8.0
million or $0.11 per diluted share, as adjusted for a $0.5 million
accelerated write off of deferred financing costs, for the Kite
Portfolio compared to $8.4 million, or $0.12 per diluted share, for the
same period in the prior year. The decline in FFO largely reflects the
effects of the preferred share offering in the first quarter, as well as
the Company’s asset recycling activity. The Company’s allocable share of
FFO (excluding the write off of deferred financing costs) was $7.1
million for the three months ended June 30, 2012 compared to $7.5
million for the same period in 2011.
For the six months ended June 30, 2012, FFO as adjusted for the $0.5
million write off of deferred financing costs and a first quarter $1.3
million litigation charge was $15.9 million, or $0.22 per diluted share,
for the Kite Portfolio compared to $15.3 million, or $0.21 per diluted
share, for the same period in the prior year. The Company’s allocable
share of FFO was $14.1 million, as adjusted, for the six months ended
June 30, 2012 compared to $13.6 million for the same period in 2011.
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. For informational purposes, we have also
provided FFO adjusted for the litigation charge recorded in the first
quarter of 2012 and the write off of deferred loan costs in the second
quarter of 2012. We believe this supplemental information provides a
meaningful measure of our operating performance. 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 loss attributable to Kite Realty Group Trust was $2.7 million for
the second quarter of 2012 compared to a net loss in the prior year of
$1.1 million. This change is primarily attributable to increases in
interest expense and depreciation expense totaling $1.8 million due to
the transition of development properties to operating status,
accelerated depreciation of $0.7 million related to the redevelopment of
the Company’s Rangeline Crossing property, offset by a $0.8 million
increase in revenue from property operations. The Company’s total
revenue for the second quarter of 2012 increased to $25.1 million from
$24.4 million for the same period in 2011.
Net loss attributable to Kite Realty Group Trust was $2.7 million for
the first six months of 2012 compared to a net loss in the prior year of
$3.2 million. This change is attributable to a $1.8 million increase of
interest expense primarily due to the transition of certain other
properties to operating status and an increase of $1.3 million in
depreciation and amortization expense due to accelerated depreciation
taken in the current year on certain redevelopment properties, a $1.3
million litigation charge in the first quarter of 2012, and higher
dividends on preferred shares of $0.8 million, offset by a $5.2 million
current year gain on the sale of operating properties and higher
revenues from property operations of $3.0 million. The Company’s total
revenue for the first six months of 2012 was $50.9 million, a $3.0
million increase from the same period in 2011. The increase resulted
from an improvement in revenue from property operations due to improved
occupancy levels and current year acquisitions.
John A. Kite, Kite Realty Group’s Chairman and Chief Executive Officer,
said, “All of our core operating metrics continued to be solid through
the first half of the year. We are very pleased with our ability to
continue to generate strong leasing spreads and execute leases with
several of the country’s best-in-class retailers. We also acquired two
very attractive grocery-anchored assets in south Florida in the last
several months and generated capital through the sale of a non-core
asset. With financing in place and anchor tenants secured, we look
forward to beginning vertical construction at Holly Springs, Four Corner
Square and Rangeline Crossing.”
Operating Portfolio
As of June 30, 2012, the Company owned interests in 58 retail operating
properties (including five properties undergoing redevelopment) totaling
approximately 8.7 million square feet. The owned gross leasable area
(“GLA”) in the Company’s 53-property retail operating portfolio was
93.0% leased as of June 30, 2012, compared to 93.4% leased as of the end
of the prior quarter. The decline was primarily caused by the closure of
a 31,500 square foot RoomStore during the quarter due to bankruptcy.
In addition, the Company owns four operating commercial properties
totaling 583,600 square feet. As of June 30, 2012, the owned net
rentable area of the commercial operating portfolio was 93.4% leased,
the same as at the end of the prior quarter. The combined retail and
commercial operating portfolio leased percentage was 93.0% as of June
30, 2012, compared to 93.4% as of the end of the prior quarter.
On a same property basis, the leased percentage of 52 same store
operating properties was 92.7% at June 30, 2012 and 92.9% at June 30,
2011. Same property net operating income (“NOI”) for these properties
increased 2.4% in the second quarter of 2012 compared to the same period
in the prior year.
Leasing Activities
During the second quarter of 2012, the Company executed 39 comparable
new and renewal leases totaling approximately 233,500 square feet with
aggregate cash rent spreads of 14.6%. New leases were signed with 22
tenants for approximately 88,100 square feet of GLA. These leases
represent a 22.7% positive cash rent spread. A total of 17 leases for
145,400 square feet were renewed during the quarter for a 4.9% positive
cash rent spread.
Development, Acquisition and Disposition
Activities
As of June 30, 2012, the Company owned interests in seven in-process
development/redevelopment projects that are expected to total 729,700
owned square feet upon completion and are 81% pre-leased or committed as
of June 30, 2012. The total estimated cost of these projects is
approximately $202.6 million, of which $99.8million had been
incurred as of June 30, 2012.
During the quarter, the Company commenced the redevelopment of its
Rangeline Crossing (formerly “the Centre”) project. Rangeline Crossing
is an 84,000 square foot center in Carmel, Indiana to be anchored by
organic grocery Earth Fare and will also include Panera Bread, Old
National Bank and Verizon. This redevelopment project is 87.5% preleased
or committed as of June 30, 2012 and is scheduled to be substantially
completed in the Spring of 2013.
In addition, the Company added to its in-process projects a 12,000
square foot retail project at DePauw University in Greencastle, Indiana.
This project is 100% leased, is anchored by Follett Bookstore and
Starbucks and will be completed in the third quarter of 2012.
In June, the Company acquired Cove Center, a 160,000 square foot
unencumbered neighborhood shopping center in Stuart, Florida. Cove
Center is 96.3% leased and is anchored by Publix Supermarket and Beall’s
Department Store. The purchase price, exclusive of closing costs, was
$22.1 million.
Also in June, the Company sold its South Elgin Commons retail operating
property in South Elgin, Illinois (Chicago MSA) for a sales price of $25
million. Net proceeds of $8.9 million were primarily used to fund the
acquisition of Cove Center after the payoff of the property specific
debt.
Subsequent to the end of the quarter, the Company acquired a
neighborhood shopping center in Vero Beach Florida for a purchase price
exclusive of closing costs of $15.2 million. This 138,000 square foot
center is anchored by Publix Supermarkets and Stein Mart and was 99%
leased.
Financing Activities
The Company closed on a $125 million unsecured seven-year term loan
during the quarter. This loan has an interest rate of LIBOR plus 210 to
310 basis points and a maturity date of April 30, 2019. The proceeds of
this loan were used to retire property specific debt on five of the
Company’s properties. During the quarter, the Company entered into an
interest rate hedge to fix the initial rate at 4.12%.
The Company also extended the maturity date of its unsecured revolving
credit facility during the quarter to April 30, 2016 and reduced the
interest rate to LIBOR plus 190 to 290 basis points, depending on the
Company’s leverage. The Company has an option to extend the maturity
date to April 30, 2017.
Subsequent to the end of the quarter, the Company closed on a $23
million construction loan for its Four Corner Square redevelopment
property in Maple Valley, Washington (Seattle MSA). Construction has
commenced on this project and is expected to be substantially completed
in the first half of 2013. The loan bears interest at LIBOR plus 225
basis points and has a three-year term with an option to extend for an
additional two years.
Also subsequent to the end of the quarter, the Company closed on a $37.5
million construction loan for its Holly Springs Towne Center (formerly
New Hill Place) development property. This loan has a term of three
years with a two-year extension option and bears interest at LIBOR plus
250 basis points which decreases to LIBOR plus 225 basis points after
the completion of construction.
Distributions
On June 15, 2012, the Board of Trustees declared a quarterly common
share cash distribution of $0.06 per common share for the quarter ended
June 30, 2012 payable to shareholders of record as of July 6, 2012. This
distribution was paid on July 13, 2012. The Board of Trustees
anticipates declaring a quarterly cash distribution for the quarter
ending September 30, 2012 later in the third quarter.
FFO Guidance
The Company is reaffirming its FFO as adjusted guidance for the year
ending December 31, 2012 in a range of $0.42 to $0.46 per diluted share.
Following is a reconciliation of estimated net loss per common share to
estimated FFO per common share:
| Guidance Range for 2012
|
|
|
|
| Low |
|
| High |
| | | | | | | |
|
|
Net loss per diluted common share
| | | | | $(0.12) | | | $(0.08) |
|
Depreciation and amortization
| | | | |
0.51
|
|
|
0.51
|
|
FFO per diluted common share
| | | | |
0.39
| | |
0.43
|
|
Charges for litigation and accelerated write off of deferred
financing costs
| | | | |
0.03
|
|
|
0.03
|
|
FFO per diluted common share, as adjusted
| | | | | $ 0.42 |
|
| $ 0.46 |
| | | | | | | |
|
Earnings Conference Call
The Company will conduct a conference call to discuss its financial
results on Friday, August 3th at 11:00 a.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) 599-9829 for domestic callers and (617)
847-8703 for international callers (passcode 90439326). In addition, a
telephonic replay of the call will be available until November 3, 2012.
The replay dial-in telephone numbers are (888) 286-8010 for domestic
callers and (617) 801-6888 for international callers (passcode 62939499).
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 June 30, 2012, the Company owned interests in a
portfolio of 62 operating and redevelopment properties totaling
approximately 9.3 million square feet and an additional four properties
currently under development totaling 0.7 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, 2011, 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) |
| | | | | | | | | |
|
| | | | | June 30,
2012 | | | | December 31,
2011 | |
| Assets: | | | | | | | | | | | | |
|
Investment properties, at cost:
| | | | | | | | | | | | |
|
Land
| | | | |
$
|
231,536,000
| | | |
$
|
238,129,092
| |
|
Land held for development
| | | | | |
35,979,859
| | | | |
36,977,501
| |
|
Buildings and improvements
| | | | | |
848,689,972
| | | | |
845,173,680
| |
|
Furniture, equipment and other
| | | | | |
4,753,291
| | | | |
5,474,403
| |
|
Construction in progress
| | | | | |
149,980,572
| | | | |
147,973,380
| |
| | | | | |
1,270,939,694
| | | | |
1,273,728,056
| |
|
Less: accumulated depreciation
| | | | | |
(189,082,944
|
)
| | | |
(178,006,632
|
)
|
| | | | | |
1,081,856,750
| | | | |
1,095,721,424
| |
|
Cash and cash equivalents
| | | | | |
8,296,769
| | | | |
10,042,450
| |
|
Tenant receivables, including accrued straight-line rent of
$11,432,061 and $11,398,347, respectively, net of allowance for
uncollectible accounts
| | | | | |
19,085,068
| | | | |
20,413,671
| |
|
Other receivables
| | | | | |
3,930,536
| | | | |
2,978,225
| |
|
Investments in unconsolidated entities, at equity
| | | | | |
22,174,655
| | | | |
21,646,443
| |
|
Escrow deposits
| | | | | |
8,789,868
| | | | |
9,424,986
| |
|
Deferred costs, net
| | | | | |
31,769,214
| | | | |
31,079,129
| |
|
Prepaid and other assets
| | | | | |
2,200,902
| | | | |
1,959,790
| |
| Total Assets | | | | |
$
|
1,178,103,762
| | | |
$
|
1,193,266,118
| |
| | | | | | | | | | | |
|
| Liabilities and Equity: | | | | | | | | | | | | |
|
Mortgage and other indebtedness
| | | | |
$
|
652,665,427
| | | |
$
|
689,122,933
| |
|
Accounts payable and accrued expenses
| | | | | |
38,287,686
| | | | |
36,048,324
| |
|
Deferred revenue and other liabilities
| | | | | |
13,352,512
| | | | |
12,636,228
| |
| Total Liabilities | | | | | |
704,305,625
| | | | |
737,807,485
| |
|
Commitments and contingencies
| | | | | | | | | | | | |
|
Redeemable noncontrolling interests in the Operating Partnership | | | | | |
39,825,808
| | | | |
41,836,613
| |
| Equity: | | | | | | | | | | | | |
| Kite Realty Group Trust Shareholders’ Equity: | | | | | | | | | | | | |
|
Preferred Shares, $.01 par value, 40,000,000 shares authorized,
4,100,000 and 2,800,000 shares issued and outstanding at June 30,
2012 and December 31, 2011, respectively
| | | | | |
102,500,000
| | | | |
70,000,000
| |
|
Common Shares, $.01 par value, 200,000,000 shares authorized
64,080,849 shares and 63,617,019 shares issued and outstanding at
June 30, 2012 and December 31, 2011, respectively
| | | | | |
640,808
| | | | |
636,170
| |
|
Additional paid in capital
| | | | | |
450,191,474
| | | | |
449,763,528
| |
|
Accumulated other comprehensive loss
| | | | | |
(4,228,292
|
)
| | | |
(1,524,095
|
)
|
|
Accumulated deficit
| | | | | |
(119,938,104
|
)
| | | |
(109,504,068
|
)
|
| Total Kite Realty Group Trust Shareholders’ Equity | | | | | |
429,165,886
| | | | |
409,371,535
| |
| Noncontrolling Interests | | | | | |
4,806,443
| | | | |
4,250,485
| |
| Total Equity | | | | | |
433,972,329
| | | | |
413,622,020
| |
| Total Liabilities and Equity | | | | |
$
|
1,178,103,762
| | | |
$
|
1,193,266,118
| |
| | | | | | | | | | | |
|
|
|
|
|
Kite Realty Group Trust Consolidated Statements of Operations For the Three and Six Months Ended June 30, 2012 and 2011 (Unaudited) |
|
|
|
|
|
|
| Three Months Ended June 30, | |
|
| Six Months Ended June 30, | |
| | | | | 2012 | |
| 2011 | | | | 2012 | |
| 2011 | |
| Revenue: | | | | | | | | | | | | | | | | | | | | |
|
Minimum rent
| | | | |
$
|
19,562,959
| | |
$
|
18,202,471
| | | |
$
|
38,823,658
| | |
$
|
35,800,908
| |
|
Tenant reimbursements
| | | | | |
4,665,765
| | | |
4,682,691
| | | | |
9,904,487
| | | |
9,698,223
| |
|
Other property related revenue
| | | | | |
847,453
| | | |
1,414,060
| | | | |
2,070,881
| | | |
2,302,593
| |
|
Construction and service fee revenue
| | | | | |
54,613
| | | |
76,483
| | | | |
98,017
| | | |
86,520
| |
| Total revenue | | | | | |
25,130,790
| | | |
24,375,705
| | | | |
50,897,043
| | | |
47,888,244
| |
| Expenses: | | | | | | | | | | | | | | | | | | | | |
|
Property operating
| | | | | |
4,240,446
| | | |
4,415,221
| | | | |
8,868,994
| | | |
9,168,549
| |
|
Real estate taxes
| | | | | |
3,169,255
| | | |
3,522,033
| | | | |
6,823,906
| | | |
6,742,327
| |
|
Cost of construction and services
| | | | | |
82,115
| | | |
114,254
| | | | |
174,463
| | | |
164,167
| |
|
General, administrative, and other
| | | | | |
1,843,087
| | | |
1,413,918
| | | | |
3,666,807
| | | |
3,262,370
| |
|
Litigation charge
| | | | | |
—
| | | |
—
| | | | |
1,289,446
| | | |
—
| |
|
Depreciation and amortization
| | | | | |
10,486,899
| | | |
9,611,307
| | | | |
19,917,406
| | | |
18,506,263
| |
| Total expenses | | | | | |
19,821,802
| | | |
19,076,733
| | | | |
40,741,022
| | | |
37,843,676
| |
| | | | | | | | | | | | | | | | | | | |
|
| Operating income | | | | | |
5,308,988
| | | |
5,298,972
| | | | |
10,156,021
| | | |
10,044,568
| |
|
Interest expense
| | | | | |
(6,398,553
|
)
| | |
(5,497,349
|
)
| | | |
(12,874,350
|
)
| | |
(11,055,845
|
)
|
|
Income tax benefit/(expense) of taxable REIT subsidiary
| | | | | |
30,174
| | | |
30,760
| | | | |
(7,390
|
)
| | |
46,833
| |
|
Income/(loss) from unconsolidated entities
| | | | | |
382
| | | |
92,220
| | | | |
(11,148
|
)
| | |
4,595
| |
|
Other income
| | | | | |
47,835
| | | |
93,582
| | | | |
85,963
| | | |
142,620
| |
| (Loss) income from continuing operations | | | | | |
(1,011,174
|
)
| | |
18,185
| | | | |
(2,650,904
|
)
| | |
(817,229
|
)
|
| Discontinued operations: | | | | | | | | | | | | | | | | | | | | |
|
Income from operations
| | | | | |
42,425
| | | |
85,883
| | | | |
173,924
| | | |
143,986
| |
|
Gain on sale of operating property, net of tax expense
| | | | | |
93,891
| | | |
—
| | | | |
5,245,880
| | | |
—
| |
| Income from discontinued operations | | | | | |
136,316
| | | |
85,883
| | | | |
5,419,804
| | | |
143,986
| |
| Consolidated net (loss) income | | | | | |
(874,858
|
)
| | |
104,068
| | | | |
2,768,900
| | | |
(673,243
|
)
|
|
Net loss attributable to noncontrolling interests
| | | | | |
271,221
| | | |
282,545
| | | | |
(1,825,799
|
)
| | |
353,039
| |
Net (loss) income attributable to Kite Realty Group Trust | | | | | |
(603,637
|
)
| | |
386,613
| | | | |
943,101
| | | |
(320,204
|
)
|
|
Dividends on preferred shares
| | | | | |
(2,114,063
|
)
| | |
(1,443,750
|
)
| | | |
(3,691,876
|
)
| | |
(2,887,500
|
)
|
| Net loss attributable to common shareholders | | | | |
$
|
(2,717,700
|
)
| |
$
|
(1,057,137
|
)
| | |
$
|
(2,748,775
|
)
| |
$
|
(3,207,704
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
Net (loss) income per common share attributable to Kite Realty
Group Trust common shareholders – basic and diluted | | | | | | | | | | | | | | | | | | | | |
|
Loss from continuing operations attributable to common shareholders
| | | | |
$
|
(0.04
|
)
| |
$
|
(0.02
|
)
| | |
$
|
(0.09
|
)
| |
$
|
(0.05
|
)
|
|
Income from discontinued operations attributable to common
shareholders
| | | | | |
0.00
| | | |
0.00
| | | | |
0.05
| | | |
0.00
| |
|
Net loss attributable to common shareholders
| | | | |
$
|
(0.04
|
)
| |
$
|
(0.02
|
)
| | |
$
|
(0.04
|
)
| |
$
|
(0.05
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
| Weighted average common shares outstanding – basic and diluted | | | | | |
64,014,187
| | | |
63,567,964
| | | | |
63,864,040
| | | |
63,508,337
| |
| Dividends declared per common share | | | | |
$
|
0.06
| | |
$
|
0.06
| | | |
$
|
0.12
| | |
$
|
0.12
| |
| | | | | | | | | | | | | | | | | | | |
|
| Loss attributable to Kite Realty Group Trust common shareholders | | | | | | | | | | | | | | | | | | | | |
| Loss from continuing operations | | | | |
$
|
(2,839,225
|
)
| |
$
|
(1,133,618
|
)
| | |
$
|
(5,720,804
|
)
| |
$
|
(3,335,909
|
)
|
| Income from discontinued operations | | | | | |
121,525
| | | |
76,481
| | | | |
2,972,029
| | | |
128,205
| |
| Net loss attributable to Kite Realty Group Trust common
shareholders | | | | |
$
|
(2,717,700
|
)
| |
$
|
(1,057,137
|
)
| | |
$
|
(2,748,775
|
)
| |
$
|
(3,207,704
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
Kite Realty Group Trust Funds From Operations For the Three and Six Months Ended June 30, 2012 and 2011 (Unaudited) |
|
|
|
|
|
|
| Three Months Ended June 30, | |
|
| Six Months Ended June 30, | |
| | | | | 2012 | |
| 2011 | | | | 2012 | |
| 2011 | |
|
Consolidated net (loss) income
| | | | |
$
|
(874,858
|
)
| |
$
|
104,068
| | | |
$
|
2,768,900
| | |
$
|
(673,243
|
)
|
|
Less dividends on preferred shares
| | | | | |
(2,114,063
|
)
| | |
(1,443,750
|
)
| | | |
(3,691,876
|
)
| | |
(2,887,500
|
)
|
|
Less net (loss) income attributable to noncontrolling interests in
properties
| | | | | |
(49,644
|
)
| | |
(25,189
|
)
| | | |
(76,414
|
)
| | |
(41,775
|
)
|
|
Less gain on sale of operating property, net of tax expense
| | | | | |
(93,891
|
)
| | |
—
| | | | |
(5,245,880
|
)
| | |
—
| |
|
Add depreciation and amortization, net of noncontrolling interests
| | | | | |
10,607,051
| | | |
9,769,016
| | | | |
20,324,359
| | | |
18,866,602
| |
|
Funds From Operations of the Kite Portfolio1 | | | | | |
7,474,595
| | | |
8,404,145
| | | | |
14,079,089
| | | |
15,264,084
| |
|
Less redeemable noncontrolling interests in Funds From Operations
| | | | | |
(798,279
|
)
| | |
(916,052
|
)
| | | |
(1,524,773
|
)
| | |
(1,670,645
| ) |
|
Funds From Operations allocable to the Company1 | | | | |
$
|
6,676,316
| | |
$
|
7,488,093
| | | |
$
|
12,554,316
| | |
$
|
13,593,439
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Basic FFO per share of the Kite Portfolio
| | | | |
$
|
0.10
| | |
$
|
0.12
| | | |
$
|
0.20
| | |
$
|
0.21
| |
|
Diluted FFO per share of the Kite Portfolio
| | | | |
$
|
0.10
| | |
$
|
0.12
| | | |
$
|
0.20
| | |
$
|
0.21
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Funds From Operations of the Kite Portfolio
| | | | |
$
|
7,474,595
| | |
$
|
8,404,145
| | | |
$
|
14,079,089
| | |
$
|
15,264,084
| |
|
Add back: litigation charge
| | | | | |
—
| | | |
—
| | | | |
1,289,446
| | | |
—
| |
|
Add back: accelerated amortization of deferred financing fees
| | | | | |
500,028
| | | |
—
| | | | |
500,028
| | | |
—
| |
|
Funds From Operations of the Kite Portfolio, as adjusted
| | | | |
$
|
7,974,623
| | |
$
|
8,404,145
| | | |
$
|
15,868,563
| | |
$
|
15,264,084
| |
|
Basic and Diluted FFO per share of the Kite Portfolio, as adjusted
| | | | |
$
|
0.11
| | |
$
|
0.12
| | | |
$
|
0.22
| | |
$
|
0.21
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Basic weighted average Common Shares outstanding
| | | | | |
64,014,187
| | | |
63,567,964
| | | | |
63,864,040
| | | |
63,508,337
| |
|
Diluted weighted average Common Shares outstanding
| | | | | |
64,341,342
| | | |
63,856,717
| | | | |
64,191,292
| | | |
63,805,935
| |
|
Basic weighted average Common Shares and Units outstanding
| | | | | |
71,845,223
| | | |
71,419,121
| | | | |
71,699,582
| | | |
71,361,752
| |
|
Diluted weighted average Common Shares and Units outstanding
| | | | | |
72,172,379
| | | |
71,707,874
| | | | |
72,026,834
| | | |
71,659,350
| |
|
|
|
|
|
|
|
____________________
|
| | | | | |
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 Six Months Ended June 30, 2012 and 2011 (Unaudited) |
|
|
|
|
|
|
| Three Months Ended June 30, | |
|
| Six Months Ended June 30, | |
| | | | | 2012 | |
| 2011 | |
| % Change | | | | 2012 | |
| 2011 | |
| % Change | |
|
Number of properties at period end1 | | | | | |
52
| | | |
52
| | | | | | | |
52
| | | |
52
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Leased percentage at period-end
| | | | | |
92.7%
| | | |
92.9%
| | | | | | | |
92.7%
| | | |
92.9%
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Minimum rent
| | | | |
$
|
16,219,590
| | |
$
|
16,104,382
| | | | | | |
$
|
32,371,855
| | |
$
|
31,978,260
| | | | |
|
Tenant recoveries
| | | | | |
4,126,494
| | | |
3,918,687
| | | | | | | |
8,359,780
| | | |
8,317,136
| | | | |
|
Other income
| | | | | |
411,772
| | | |
416,802
| | | | | | | |
1,092,897
| | | |
908,919
| | | | |
| | | | | |
20,757,856
| | | |
20,439,871
| | | | | | | |
41,824,532
| | | |
41,204,315
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Property operating expenses
| | | | | |
3,760,493
| | | |
3,836,602
| | | | | | | |
7,936,405
| | | |
8,578,700
| | | | |
|
Real estate taxes
| | | | | |
2,842,344
| | | |
2,786,274
| | | | | | | |
5,729,329
| | | |
5,519,047
| | | | |
| | | | | |
6,602,837
| | | |
6,622,876
| | | | | | | |
13,665,734
| | | |
14,097,747
| | | | |
| Net operating income – same properties (52 properties)2 | | | | | | 14,155,019 | | | | 13,816,995 | | | 2.4 | % | | | | 28,158,798 | | | | 27,106,568 | | | 3.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Reconciliation to Most Directly Comparable GAAP Measure: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net operating income – same properties
| | | | |
$
|
14,155,019
| | |
$
|
13,816,995
| | | | | | |
$
|
28,158,798
| | |
$
|
27,106,568
| | | | |
|
Other income (expense), net
| | | | | |
(14,758,656
|
)
| | |
(13,430,382
|
)
| | | | | | |
(27,215,697
|
)
| | |
(27,426,772
|
)
| | | |
|
Less: dividends on preferred shares
| | | | | |
(2,114,063
|
)
| | |
(1,443,750
|
)
| | | | | | |
(3,691,876
|
)
| | |
(2,887,500
|
)
| | | |
|
Net loss attributable to common shareholders
| | | | |
$
|
(2,717,700
|
)
| |
$
|
(1,057,137
|
)
| | | | | |
$
|
(2,748,775
|
)
| |
$
|
(3,207,704
|
)
| | | |
|
|
|
|
|
|
|
____________________
|
| | | | | |
1
|
|
|
Same Property analysis excludes Courthouse Shadows, Oleander Place,
Four Corner Square, Rangeline Crossing and Bolton Plaza 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, the litigation charge, lease termination fees
and significant prior year expense recoveries and adjustments, if
any.
|
| | | | | | | | |
|
The Company believes that Net Operating Income 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.
NOI and 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, 317-577-5609
Chief Financial
Officer
dsink@kiterealty.com
or
Investors/Media:
David
Buell, 317-713-5647
Director of Accounting and Financial Reporting
dbuell@kiterealty.com
Source: Kite Realty Group Trust