Highlights
Operations/Leasing
- Funds From Operations was $0.11 per diluted common share for the
third quarter of 2012.
- Increased retail operating portfolio occupancy by 40 basis points
to 93.4% and increased small shop occupancy by 120 basis points to
81.8%.
- Third quarter recurring revenue from property operations increased
9.0% over the comparable period in the prior year.
- Same Property Net Operating Income increased 1.9% for the quarter
and 3.2% for the first nine months over the comparable periods in the
prior year.
- Executed 46 new and renewal leases for 231,340 square feet during
the quarter for aggregate cash rent spreads of 4.1%.
Acquisitions and Dispositions
- Acquired 12thStreet Plaza, a
Publix-anchored shopping center in Vero Beach, Florida, for $15.2
million, including the assumption of a $7.9 million mortgage, which
matures in August 2013.
- Sold Coral Springs Plaza in Coral Springs, Florida for total net
proceeds of $8.7 million.
Capital Markets
- Subsequent to the end of the quarter, the Company issued 12,075,000
common shares in a public offering at a price of $5.20 per share. The
net proceeds from this offering of approximately $60 million were
initially used to repay amounts outstanding under the Company’s
unsecured revolving credit facility.
- Closed on a $37.5 million construction loan for Holly Springs Towne
Center development property and a $22.8 million construction loan for
Four Corner Square redevelopment property.
INDIANAPOLIS--(BUSINESS WIRE)--
Kite Realty Group Trust (NYSE: KRG) (the “Company”) today announced
results for its third quarter ended September 30, 2012. Financial
statements and exhibits attached to this release include results for the
three and nine months ended September 30, 2012 and 2011.
Financial and Operating Results
Funds from operations (FFO), a widely accepted supplemental measure of
REIT performance established by the National Association of Real Estate
Investment Trusts, was $7.9 million, or $0.11 per diluted share, for the
Kite Portfolio for the three month periods ended September 30, 2012 and
2011. The Company’s allocable share of FFO was $7.1 million for both
three month periods ended September 30, 2012 and 2011.
For the nine months ended September 30, 2012 FFO, as adjusted for a $1.3
million litigation charge and a $0.5 million write-off of deferred
financing costs was $23.8 million, or $0.33 per diluted share, for the
Kite Portfolio compared to $23.2 million, or $0.32 per diluted share,
for the same period in the prior year. The Company’s allocable share of
FFO as adjusted was $21.3 million for the nine months ended September
30, 2012 compared to $20.6 million for the same period in 2011. Without
these adjustments, FFO for the Kite Portfolio and the Company’s
allocable share of FFO for the nine months ended September 30, 2012 were
$22.0 million and $19.7 million, respectively.
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 a litigation charge recorded in the first
quarter of 2012 and a write-off of deferred financing 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 and FFO as
adjusted is included in the attached table.
Net loss attributable to common shareholders was $3.0 million for the
third quarter of 2012 compared to net loss in the prior year of $0.6
million. This change is primarily attributable to an increase in
depreciation expense of $3.0 million due to transition of development
properties to the operating portfolio and accelerated depreciation
related to the redevelopment of the Company’s Four Corner Square and
Rangeline Crossing properties, partially offset by a $2.1 million
increase in income from property operations. The Company’s total revenue
for the third quarter of 2012 increased to $25.4 million from $23.5
million for the same period in 2011 due to transition of development
properties to the operating portfolio over the past twelve months.
Net loss attributable to common shareholders was $5.8 million for the
first nine months of 2012 compared to net loss in the prior year of $3.9
million. This change is primarily attributable to a $2.2 million
increase in interest expense largely due to the transition of certain
properties to the operating portfolio, an increase of $4.4 million in
depreciation and amortization expense due to accelerated depreciation
taken in the current year on certain redevelopment properties, and a
$1.3 million litigation charge in the first quarter of 2012, partially
offset by a $5.2 million current year gain on the sale of operating
properties and higher income from property operations of $5.3 million.
The Company’s total revenue for the first nine months of 2012 was $74.8
million, a $4.9 million increase from the same period in 2011. The
increase resulted from an improvement in revenue due to the transition
of properties from in-process development/redevelopment to the operating
portfolio, increased revenue from existing properties due to improved
occupancy levels, the current year acquisitions of 12thStreet Plaza and Cove Center and the full year effect of properties
acquired during 2011.
John A. Kite, Kite Realty Group’s Chairman and Chief Executive Officer,
said "We are pleased with our recent success in the capital markets, as
well as the significant progress we continue to make with our current
acquisition pipeline. We plan to deploy the capital we recently raised
into quality assets and bring our in-process developments to completion,
which should accelerate our revenue growth. We are also ahead of plan on
the disposition of non-core assets and the recycling of this capital
into our redevelopment platform and acquisition opportunities.”
Operating Portfolio
As of September 30, 2012, the Company owned interests in 58 retail
properties (including five properties under redevelopment) totaling
approximately 8.5 million square feet. During the quarter the Company
removed its Preston Commons property from the operating portfolio and
transferred it to “held for sale” status, as the Company currently is
pursuing the sale of this asset. The owned gross leasable area (“GLA”)
in the Company’s 53-property retail operating portfolio was 93.4% leased
as of September 30, 2012, compared to 93.0% leased as of the end of the
prior quarter.
During the quarter the Company also removed two commercial properties
from its operating portfolio and transferred them to “held for sale”
status. Pen Products and Indiana State Motor Pool total 200,875 square
feet and were sold on October 31, 2012. As of September 30, 2012, the
owned net rentable area of the two properties remaining in the
commercial operating portfolio was 93.6% leased compared to 93.4% at the
end of the prior quarter. The combined retail and commercial operating
portfolio leased percentage was 93.5% as of September 30, 2012, compared
to 93.0% as of the end of the prior quarter.
Same property net operating income (“NOI”) for the Company’s properties
increased 1.9% in the third quarter of 2012 compared to the same period
in the prior year. The Company anticipates exceeding its previously
disclosed full-year same property NOI guidance range. The same property
leased percentage of these 49 operating properties was 93.0% at
September 30, 2012 and 92.7% at September 30, 2011.
The Company’s small shop leased percentage increased 120 basis points
during the quarter from 80.6% to 81.8%, representing the fourth
consecutive quarterly increase. The Company’s anchor leased percentage
remained unchanged at 98.2% as of September 30, 2012.
Leasing Activities
During the third quarter of 2012, the Company executed 46 new and
renewal leases totaling approximately 231,340 square feet with aggregate
cash rent spreads of 4.1%. New leases were signed with 27 tenants for
approximately 104,078 square feet of GLA. These leases represent an
11.6% positive cash rent spread. A total of 19 leases representing
127,262 square feet were renewed during the quarter for a 1.9% decrease
in cash rent spread.
Development, Acquisition and Disposition
Activities
As of September 30, 2012, the Company owned interests in five in-process
development/redevelopment projects that were 83.7% pre-leased or
committed and are expected to total 703,224 owned square feet upon
completion. The total estimated cost of these projects is approximately
$195 million, of which $128 million had been incurred as of September
30, 2012.
During the quarter, the Company transitioned the 12,000 square foot
DePauw University Bookstore & Café and 14,550 square foot Zionsville
(Indianapolis MSA) Walgreens to the operating portfolio. These projects
were both 100% leased.
In July, the Company acquired 12thStreet Plaza (formerly
“Vero Mall”), a 138,000 square foot neighborhood shopping center in Vero
Beach, Florida. 12thStreet Plaza was 96.6% leased as of
September 30, 2012 and is anchored by Publix Supermarket and Stein Mart.
The purchase price, exclusive of closing costs, was $15.2 million,
including the assumption of a $7.9 million mortgage loan which matures
in August 2013.
In September, the Company sold its Coral Springs Plaza retail operating
property in Coral Springs, Florida for total net proceeds of $8.7
million, which were primarily used to pay down the Company’s unsecured
revolving credit facility.
Subsequent to the end of the quarter, the Company sold its Pen Products
and Indiana State Motor Pool commercial operating properties for total
gross proceeds of $10.1 million.
Capital Markets
Subsequent to the end of the quarter, the Company completed a public
offering of 12,075,000 common shares at a price of $5.20 per share,
which generated net proceeds to the Company of approximately $60
million. The Company initially used the net proceeds to repay amounts
outstanding under its unsecured revolving credit facility. The Company
anticipates redeploying the net proceeds into the acquisition of
properties and the funding of redevelopment costs.
In July, the Company closed on a $22.8 million construction loan for its
Four Corner Square redevelopment property in Maple Valley, Washington
(Seattle MSA). 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. Vertical construction has commenced on this project and is
expected to be substantially complete in the first half of 2013.
In August, the Company closed on a $37.5 million construction loan for
its Holly Springs Towne Center development property in Raleigh, North
Carolina. 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). Vertical construction has commenced as well on this
project and is also expected to be substantially complete in the first
half of 2013.
Distributions
On October 12, 2012, the Company paid a quarterly common share cash
distribution of $0.06 per common share for the quarter ended September
30, 2012 to shareholders of record as of October 5, 2012. The Board of
Trustees anticipates declaring a quarterly cash distribution for the
quarter ending December 31, 2012 later in the fourth 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
| | | |
$
|
(0.15
|
)
| | | |
$
|
(0.11
|
)
|
|
Depreciation and amortization
| | | |
|
0.55
|
|
|
|
|
|
0.55
|
|
|
FFO per diluted common share
| | | | |
0.40
| | | | | |
0.44
| |
|
Charges for litigation and accelerated write off of deferred
financing costs
| | | |
|
0.02
|
|
|
|
|
|
0.02
|
|
|
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, November 2 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 (800) 901-5213 for domestic callers and (617)
786-2962 for international callers (passcode 75190629). In addition, a
telephonic replay of the call will be available until January 9, 2013.
The replay dial-in telephone numbers are (888) 286-8010 for domestic
callers and (617) 801-6888 for international callers (passcode 53357546).
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 September 30, 2012, the Company owned interests in a
portfolio of 60 operating and redevelopment properties totaling
approximately 8.9 million square feet and an additional two 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, 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) |
|
| | |
| | |
| | September 30,
2012 | | | December 31,
2011 | |
| Assets: | | | | | | | | |
|
Investment properties, at cost:
| | | | | | | | |
|
Land
| |
$
|
232,080,553
| | |
$
|
238,129,092
| |
|
Land held for development
| | |
35,979,859
| | | |
36,977,501
| |
|
Buildings and improvements
| | |
856,019,174
| | | |
845,173,680
| |
|
Furniture, equipment and other
| | |
4,246,598
| | | |
5,474,403
| |
|
Construction in progress
| | |
182,944,921
| | | |
147,973,380
| |
| | |
1,311,271,105
| | | |
1,273,728,056
| |
|
Less: accumulated depreciation
| | |
(191,817,602
|
)
| | |
(178,006,632
|
)
|
| | |
1,119,453,503
| | | |
1,095,721,424
| |
|
Cash and cash equivalents
| | |
9,933,628
| | | |
10,042,450
| |
|
Tenant receivables, including accrued straight-line rent of
$11,901,933 and $11,398,347, respectively, net of allowance for
uncollectible accounts
| | |
20,017,069
| | | |
20,413,671
| |
|
Other receivables
| | |
4,099,847
| | | |
2,978,225
| |
|
Investments in unconsolidated entities, at equity
| | |
22,326,140
| | | |
21,646,443
| |
|
Escrow deposits
| | |
9,858,541
| | | |
9,424,986
| |
|
Deferred costs, net
| | |
32,921,069
| | | |
31,079,129
| |
|
Prepaid and other assets
| | |
2,478,611
| | | |
1,959,790
| |
| Total Assets | |
$
|
1,221,088,408
| | |
$
|
1,193,266,118
| |
| | | | | | | |
|
| Liabilities and Equity: | | | | | | | | |
|
Mortgage and other indebtedness
| |
$
|
680,364,034
| | |
$
|
689,122,933
| |
|
Accounts payable and accrued expenses
| | |
57,679,100
| | | |
36,048,324
| |
|
Deferred revenue and other liabilities
| | |
15,936,648
| | | |
12,636,228
| |
| Total Liabilities | | |
753,979,782
| | | |
737,807,485
| |
|
Commitments and contingencies
| | | | | | | | |
|
Redeemable noncontrolling interests in the Operating Partnership | | |
34,383,098
| | | |
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 September
30, 2012 and December 31, 2011, respectively
| | |
102,500,000
| | | |
70,000,000
| |
|
Common Shares, $.01 par value, 200,000,000 shares authorized
65,604,233 shares and 63,617,019 shares issued and outstanding at
September 30, 2012 and December 31, 2011, respectively
| | |
656,043
| | | |
636,170
| |
|
Additional paid in capital
| | |
457,308,977
| | | |
449,763,528
| |
|
Accumulated other comprehensive loss
| | |
(5,609,383
|
)
| | |
(1,524,095
|
)
|
|
Accumulated deficit
| | |
(126,913,745
|
)
| | |
(109,504,068
|
)
|
| Total Kite Realty Group Trust Shareholders’ Equity | | |
427,941,892
| | | |
409,371,535
| |
| Noncontrolling Interests | | |
4,783,636
| | | |
4,250,485
| |
| Total Equity | | |
432,725,528
| | | |
413,622,020
| |
| Total Liabilities and Equity | |
$
|
1,221,088,408
| | |
$
|
1,193,266,118
| |
| | | | | | | |
|
Kite Realty Group Trust
Consolidated Statements of
Operations
For the Three and Nine Months Ended
September 30, 2012 and 2011
(Unaudited) |
|
| | |
| | |
| | Three Months Ended
September 30, | | | Nine Months Ended September 30, | |
| | 2012 | |
| 2011 | | | 2012 | |
| 2011 | |
| Revenue: | | | | | | | | | | | | | | | | |
|
Minimum rent
| |
$
|
19,439,584
| | |
$
|
17,887,595
| | |
$
|
56,885,392
| | |
$
|
52,329,925
| |
|
Tenant reimbursements
| | |
5,079,911
| | | |
4,602,449
| | | |
14,775,601
| | | |
14,077,871
| |
|
Other property related revenue
| | |
858,676
| | | |
851,855
| | | |
2,945,725
| | | |
3,153,517
| |
|
Construction and service fee revenue
| | |
52,531
| | | |
180,299
| | | |
150,548
| | | |
266,820
| |
| Total revenue | | |
25,430,702
| | | |
23,522,198
| | | |
74,757,266
| | | |
69,828,133
| |
| Expenses: | | | | | | | | | | | | | | | | |
|
Property operating
| | |
4,191,874
| | | |
4,261,465
| | | |
12,837,821
| | | |
13,195,006
| |
|
Real estate taxes
| | |
3,282,788
| | | |
3,296,603
| | | |
9,868,588
| | | |
9,764,912
| |
|
Cost of construction and services
| | |
77,901
| | | |
135,816
| | | |
252,364
| | | |
299,982
| |
|
General, administrative, and other
| | |
1,647,116
| | | |
1,401,475
| | | |
5,261,293
| | | |
4,661,059
| |
|
Acquisition costs
| | |
108,169
| | | |
—
| | | |
179,102
| | | |
49,968
| |
|
Litigation charge
| | |
—
| | | |
—
| | | |
1,289,446
| | | |
—
| |
|
Depreciation and amortization
| | |
11,244,270
| | | |
8,283,440
| | | |
30,720,823
| | | |
26,328,902
| |
| Total expenses | | |
20,552,118
| | | |
17,378,799
| | | |
60,409,437
| | | |
54,299,829
| |
| Operating income | | |
4,878,584
| | | |
6,143,399
| | | |
14,347,829
| | | |
15,528,304
| |
|
Interest expense
| | |
(6,481,825
|
)
| | |
(6,131,103
|
)
| | |
(19,164,454
|
)
| | |
(17,000,667
|
)
|
|
Income tax benefit/(expense) of taxable REIT subsidiary
| | |
13,385
| | | |
(119,561
|
)
| | |
5,995
| | | |
(72,728
|
)
|
|
Income/(loss) from unconsolidated entities
| | |
102,623
| | | |
239,852
| | | |
91,475
| | | |
244,447
| |
|
Other income
| | |
22,688
| | | |
40,825
| | | |
108,627
| | | |
183,415
| |
| (Loss) income from continuing operations | | |
(1,464,545
|
)
| | |
173,412
| | | |
(4,610,528
|
)
| | |
(1,117,229
|
)
|
| Discontinued operations: | | | | | | | | | | | | | | | | |
|
Income from operations
| | |
293,552
| | | |
568,823
| | | |
962,556
| | | |
1,186,223
| |
|
(Loss) gain on sale of operating property, net of tax expense
| | |
(65,312
|
)
| | |
—
| | | |
5,180,568
| | | |
—
| |
| Income from discontinued operations | | |
228,240
| | | |
568,823
| | | |
6,143,124
| | | |
1,186,223
| |
| Consolidated net (loss) income | | |
(1,236,305
|
)
| | |
742,235
| | | |
1,532,596
| | | |
68,994
| |
|
Net loss (income) attributable to noncontrolling interests
| | |
312,208
| | | |
57,931
| | | |
(1,513,591
|
)
| | |
410,968
| |
Net (loss) income attributable to Kite Realty Group Trust | | |
(924,097
|
)
| | |
800,166
| | | |
19,005
| | | |
479,962
| |
|
Dividends on preferred shares
| | |
(2,114,063
|
)
| | |
(1,443,750
|
)
| | |
(5,805,939
|
)
| | |
(4,331,250
|
)
|
| Net loss attributable to common shareholders | |
$
|
(3,038,160
|
)
| |
$
|
(643,584
|
)
| |
$
|
(5,786,934
|
)
| |
$
|
(3,851,288
|
)
|
| | | | | | | | | | | | | | | |
|
| 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
| |
$
|
(0.05
|
)
| |
$
|
(0.02
|
)
| |
$
|
(0.15
|
)
| |
$
|
(0.08
|
)
|
|
Income from discontinued operations attributable to common
shareholders
| | |
0.00
| | | |
0.01
| | | |
0.06
| | | |
0.02
| |
|
Net loss attributable to common shareholders
| |
$
|
(0.05
|
)
| |
$
|
(0.01
|
)
| |
$
|
(0.09
|
)
| |
$
|
(0.06
|
)
|
| | | | | | | | | | | | | | | |
|
| Weighted average common shares outstanding – basic and diluted | | |
64,780,540
| | | |
63,597,290
| | | |
64,171,770
| | | |
63,538,314
| |
| Dividends declared per common share | |
$
|
0.06
| | |
$
|
0.06
| | |
$
|
0.18
| | |
$
|
0.18
| |
| Loss attributable to Kite Realty Group Trust common shareholders | | | | | | | | | | | | | | | | |
| Loss from continuing operations | |
$
|
(3,243,747
|
)
| |
$
|
(1,150,140
|
)
| |
$
|
(9,416,614
|
)
| |
$
|
(4,907,566
|
)
|
| Income from discontinued operations | | |
205,587
| | | |
506,556
| | | |
3,629,680
| | | |
1,056,278
| |
| Net loss attributable to Kite Realty Group Trust common
shareholders | |
$
|
(3,038,160
|
)
| |
$
|
(643,584
|
)
| |
$
|
(5,786,934
|
)
| |
$
|
(3,851,288
|
)
|
| | | | | | | | | | | | | | | |
|
Kite Realty Group Trust
Funds From Operations
For
the Three and Nine Months Ended September 30, 2012 and 2011
(Unaudited) |
|
| | |
| | |
| | Three Months Ended
September 30, | | | Nine Months Ended
September 30, | |
| | 2012 | |
| 2011 | | | 2012 | |
| 2011 | |
|
Consolidated net (loss) income
| |
$
|
(1,236,305
|
)
| |
$
|
742,235
| | |
$
|
1,532,596
| | |
$
|
68,994
| |
|
Less dividends on preferred shares
| | |
(2,114,063
|
)
| | |
(1,443,750
|
)
| | |
(5,805,939
|
)
| | |
(4,331,250
|
)
|
|
Less net (loss) income attributable to noncontrolling interests in
properties
| | |
(35,228
|
)
| | |
(21,049
|
)
| | |
(111,642
|
)
| | |
(62,825
|
)
|
|
Less (loss) gain on sale of operating property, net of tax expense
| | |
65,312
| | | |
—
| | | |
(5,180,568
|
)
| | |
—
| |
|
Add depreciation and amortization, net of noncontrolling interests
| | |
11,257,277
| | | |
8,656,553
| | | |
31,581,636
| | | |
27,523,156
| |
|
Funds From Operations of the Kite Portfolio1 | | |
7,936,993
| | | |
7,933,989
| | | |
22,016,083
| | | |
23,198,075
| |
|
Less redeemable noncontrolling interests in Funds From Operations
| | |
(799,648
|
)
| | |
(881,143
|
)
| | |
(2,324,421
|
)
| | |
(2,551,788
| ) |
|
Funds From Operations allocable to the Company1 | |
$
|
7,137,345
| | |
$
|
7,052,846
| | |
$
|
19,691,662
| | |
$
|
20,646,287
| |
| | | | | | | | | | | | | | | |
|
|
Basic FFO per share of the Kite Portfolio
| |
$
|
0.11
| | |
$
|
0.11
| | |
$
|
0.31
| | |
$
|
032
| |
|
Diluted FFO per share of the Kite Portfolio
| |
$
|
0.11
| | |
$
|
0.11
| | |
$
|
0.31
| | |
$
|
0.32
| |
| | | | | | | | | | | | | | | |
|
|
Funds From Operations of the Kite Portfolio
| |
$
|
7,936,993
| | |
$
|
7,933,989
| | |
$
|
22,016,083
| | |
$
|
23,198,075
| |
|
Add back: litigation charge
| | |
—
| | | |
—
| | | |
1,289,446
| | | |
—
| |
|
Add back: accelerated amortization of deferred financing fees
| | |
—
| | | |
—
| | | |
500,028
| | | |
—
| |
|
Funds From Operations of the Kite Portfolio, as adjusted
| |
$
|
7,936,993
| | |
$
|
7,933,989
| | |
$
|
23,805,557
| | |
$
|
23,198,075
| |
|
Basic and Diluted FFO per share of the Kite Portfolio, as adjusted
| |
$
|
0.11
| | |
$
|
0.11
| | |
$
|
0.33
| | |
$
|
0.32
| |
| | | | | | | | | | | | | | | |
|
|
Basic weighted average Common Shares outstanding
| | |
64,780,540
| | | |
63,597,290
| | | |
64,171,770
| | | |
63,538,314
| |
|
Diluted weighted average Common Shares outstanding
| | |
65,126,104
| | | |
63,833,551
| | | |
64,504,424
| | | |
63,818,493
| |
|
Basic weighted average Common Shares and Units outstanding
| | |
71,956,742
| | | |
71,443,788
| | | |
71,785,927
| | | |
71,389,398
| |
|
Diluted weighted average Common Shares and Units outstanding
| | |
72,302,306
| | | |
71,680,049
| | | |
72,118,581
| | | |
71,669,577
| |
| | | | | | | | | | | | | | | |
|
|
____________________
|
|
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 Nine Months Ended September
30, 2012 and 2011
(Unaudited) |
|
| | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, | |
| | 2012 | |
| 2011 | |
| %
Change | | 2012 | |
| 2011 | |
| %
Change | |
|
Number of properties at period end1 | | |
49
| | | |
49
| | | | | |
49
| | | |
49
| | | | |
| | | | | | | | | | | | | | | | | | | | |
|
|
Leased percentage at period-end
| | |
93.0%
| | | |
92.7%
| | | | | |
93.0%
| | | |
92.7%
| | | | |
|
Minimum rent
| |
$
|
16,726,596
| | |
$
|
16,630,615
| | | | |
$
|
49,098,450
| | |
$
|
48,608,875
| | | | |
|
Tenant recoveries
| | |
4,478,051
| | | |
4,272,777
| | | | | |
12,837,832
| | | |
12,589,913
| | | | |
|
Other income
| | |
527,432
| | | |
484,298
| | | | | |
1,620,329
| | | |
1,393,217
| | | | |
| | |
21,732,079
| | | |
21,387,690
| | | | | |
63,556,611
| | | |
62,592,005
| | | | |
| | | | | | | | | | | | | | | | | | | | |
|
|
Property operating expenses
| | |
4,601,434
| | | |
4,493,844
| | | | | |
12,537,840
| | | |
13,072,544
| | | | |
|
Real estate taxes
| | |
2,988,318
| | | |
3,012,290
| | | | | |
8,717,646
| | | |
8,531,337
| | | | |
| | |
7,589,752
| | | |
7,506,134
| | | | | |
21,255,486
| | | |
21,603,881
| | | | |
| Net operating income – same properties (49 properties)2 | | | 14,142,327 | | | | 13,881,556 | | | 1.9 | % | | 42,301,125 | | | | 40,988,124 | | | 3.2 | % |
| | | | | | | | | | | | | | | | | | | | |
|
| Reconciliation to Most Directly Comparable GAAP Measure: | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
|
|
Net operating income – same properties
| |
$
|
14,142,327
| | |
$
|
13,881,556
| | | | |
$
|
42,301,125
| | |
$
|
40,988,124
| | | | |
|
Net operating income – non-same properties
| | |
3,736,374
| | | |
1,902,275
| | | | | |
9,525,922
| | | |
5,613,271
| | | | |
|
Construction, net and other
| | |
138,134
| | | |
205,599
| | | | | |
177,543
| | | |
321,972
| | | | |
|
General, administrative and acquisition expenses
| | |
(1,647,116
|
)
| | |
(1,401,475
|
)
| | | | |
(5,261,293
|
)
| | |
(4,661,059
|
)
| | | |
|
Acquisition costs
| | |
(108,169
|
)
| | |
—
| | | | | |
(179,102
|
)
| | |
(49,968
|
)
| | | |
|
Litigation charge
| | |
—
| | | |
—
| | | | | |
(1,289,446
|
)
| | |
—
| | | | |
|
Depreciation expense
| | |
(11,244,270
|
)
| | |
(8,283,440
|
)
| | | | |
(30,720,823
|
)
| | |
(26,328,902
|
)
| | | |
|
Interest expense
| | |
(6,481,825
|
)
| | |
(6,131,103
|
)
| | | | |
(19,164,454
|
)
| | |
(17,000,667
|
)
| | | |
|
Discontinued operations
| | |
228,240
| | | |
568,823
| | | | | |
6,143,124
| | | |
1,186,223
| | | | |
|
Net loss (income) attributable to noncontrolling interests
| | |
312,208
| | | |
57,931
| | | | | |
(1,513,591
|
)
| | |
410,968
| | | | |
|
Dividends on preferred shares
| | |
(2,114,063
|
)
| | |
(1,443,750
|
)
| | | | |
(5,805,939
|
)
| | |
(4,331,250
|
)
| | | |
|
Net loss attributable to common shareholders
| |
$
|
(3,038,160
|
)
| |
$
|
(643,584
|
)
| | | |
$
|
(5,786,934
|
)
| |
$
|
(3,851,288
|
)
| | | |
| | | | | | | | | | | | | | | | | | | | |
|
|
____________________
|
|
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. For the third
quarter, it also excludes three properties (Preston Commons, Pen
Products, and Indiana State Motor Pool) that were transferred to
“held for sale” status during the quarter.
|
| | |
|
|
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. Such items are
included in net operating income – non-same properties.
|
| | |
|
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, Chief Financial Officer,
317-577-5609
dsink@kiterealty.com
or
Investors/Media:
Adam
Basch, Financial Analyst, 317-578-5161
abasch@kiterealty.com
Source: Kite Realty Group Trust