INDIANAPOLIS--(BUSINESS WIRE)--
Kite Realty Group Trust (NYSE: KRG) (the “Company”) announced today its
operating results for the three and nine months ended September 30, 2013.
John A. Kite, Kite Realty Group’s Chairman and Chief Executive Officer,
said "We continued to successfully execute on our strategic plan in the
third quarter as demonstrated by our solid operating results and balance
sheet management. Our 18% FFO per share increase was driven by strong
growth in revenue and same property NOI, up 28% and 4.9%, respectively.
We significantly increased our flexibility by expanding the borrowing
capacity on our unsecured term loan, freeing up availability under our
line of credit, while reducing our borrowing costs and further
staggering our debt maturities. Our six current development and
redevelopment projects are approximately 80% pre-leased with strong
tenant lineups and have begun to deliver solid results which will drive
our growth into next year.”
Financial Results
- Funds from Operations, was $0.14 per diluted common share for the
third quarter of 2013. As adjusted for certain items, FFO was $0.13
per diluted common share.
- Revenue from recurring property operations increased 28% in the
third quarter over the same period of the prior year.
Funds from Operations
For the three months ended
September 30, 2013, funds from operations (“FFO”) was $14.0 million, or
$0.14 per diluted common share for the Kite Portfolio, compared to $7.9
million, or $0.11 per diluted common share in the same period of the
prior year. As adjusted for certain items, FFO for the three months
ended September 30, 2013 was $13.1 million, or $0.13 per diluted common
share for the Kite Portfolio, compared to $7.9 million, or $0.11 per
diluted common share, in the same period of the prior year.
For the nine months ended September 30, 2013, FFO was $35.5 million, or
$0.38 per diluted common share for the Kite Portfolio, compared to $22.0
million, or $0.31 per diluted common share in the same period of the
prior year. As adjusted for certain items, FFO for the nine months ended
September 30, 2013 was $34.8 million, or $0.37 per diluted common share
for the Kite Portfolio, compared to $23.8 million, or $0.33 per diluted
common share, in the same period of the prior year.
Net Loss
Net loss attributable to common shareholders
was $0.9 million for the third quarter of 2013, compared to a net loss
for the same period in the prior year of $3.0 million. The decrease in
the loss between periods was the result of a previously disclosed $1.2
million non-cash gain on debt extinguishment and the related reversal of
a $1.2 million interest expense accrual relating to the Company’s Kedron
Village property (further discussed below). In addition, the Company had
higher net operating income from property acquisitions and development
properties totaling $4.6 million, higher same property net operating
income of $0.7 million and a $1.4 million lease termination fee received
at one of the properties. Offsetting these increases was a $4.6 million
increase in depreciation, largely attributable to accelerated
depreciation expense taken in connection with the Company’s
redevelopment activities and depreciation associated with newly-acquired
operating properties, and a $1.6 million increase in interest expense as
several development properties opened for business and interest
capitalization has ceased on those properties.
The Company’s total revenue for the third quarter of 2013 was $32.7
million, a 34% increase over the same period in 2012. Of this increase,
$3.5 million was due to the acquisition of operating properties in 2012
and 2013, $2.1 million was due to development properties becoming
operational and $0.9 million was from operating properties in full
operation during both periods. The Company also received a $1.4 million
lease termination fee during the third quarter of 2013.
Net loss attributable to common shareholders was $9.6 million for the
first nine months of 2013 compared to a $5.8 million net loss in the
same period of the prior year. This change consists of a $11.2 million
increase in depreciation expense, largely attributable to accelerated
depreciation expense taken in connection with the Company’s
redevelopment activities and depreciation associated with newly-acquired
operating properties, the previously disclosed $5.4 million impairment
charge taken in the second quarter of 2013, a $3.1 million increase in
interest expense primarily due to several development properties opening
for business and interest capitalization ceasing, and 2012 gains on
sales of operating properties of $5.2 million compared to $0.5 million
in 2013. These were offset by higher net operating income of $18.0
million mainly due to property acquisitions and development properties
opening for business in 2013 and a 2012 litigation charge of $1.3
million.
The Company’s total revenue for the nine months ended September 30, 2013
was $93.9 million, a 32% increase over the same period in 2012. Of this
increase, $9.1 million was due to the acquisition of operating
properties in 2012 and 2013, $4.6 million was due to the transition of
development properties becoming operational and $3.0 million was from
operating properties in full operation during both periods. In addition,
the Company had higher gains on land sales and lease termination fees of
$4.8 million and $1.4 million, respectively, for the nine months ended
September 30, 2013 compared to the same period in 2012.
Portfolio Operations
- Same Property Net Operating Income for the third quarter of 2013
increased 4.9% over the same period of the prior year.
- The Company’s total portfolio was 95.9% leased at September 30,
2013, an increase of 250 basis points over the prior year.
- The leased percentage for the Company’s small shops increased to
86.7% as of September 30, 2013 from 81.8% as of September 30, 2012.
- The Company executed a lease with Gander Mountain to replace Best
Buy at its Bayport Commons property in Oldsmar, Florida (Tampa MSA).
As of September 30, 2013, the Company owned interests in 62 operating
properties totaling approximately 9.5 million square feet. The owned
gross leasable area (“GLA”) in the Company’s retail operating portfolio
was 95.9% leased as of September 30, 2013, compared to 93.4% leased as
of September 30, 2012. The owned net rentable area of the Company’s two
commercial properties was 94.2% leased as of September 30, 2013.
On a same property basis, the leased percentage of the 47 operating
properties increased to 95.8% at September 30, 2013 from 93.6% at
September 30, 2012. Same property net operating income for these
properties increased 4.9% in the third quarter of 2013 compared to the
same period in the prior year.
The Company executed 35 new and renewal leases during the third quarter
totaling 107,100 square feet. The Company generated positive leasing
spreads in the quarter with new leases up 3.6% and renewals up 2.8% for
a blended spread of 3.2% on spaces vacant less than twelve months. The
blended spread was adversely impacted by the replacement of Best Buy
with Gander Mountain at Bayport Commons.
Investments in Properties
- Acquired the Earth Fare-anchored Toringdon Market in Charlotte,
North Carolina for a purchase price of $15.9 million.
- Disposed of Cedar Hill Village in Dallas, Texas for a sale price of
$8.0 million.
Acquisitions
During the third quarter, the Company
acquired Toringdon Market, a 60,500 square foot operating property
located in Charlotte, North Carolina. Toringdon Market is 97.3% leased
and is anchored by Earth Fare Grocery. The property draws from an area
with exceptional demographics with an average household income in excess
of $100,000. The purchase price of the unencumbered shopping center was
$15.9 million, exclusive of closing costs.
Dispositions
During the third quarter, the Company
disposed of Cedar Hill Village, in Dallas, Texas, for $8.0 million.
Cedar Hill Village is anchored by 24 Hour Fitness and a non-owned JC
Penney. Net proceeds from the sale of this property were primarily used
to pay down the Company’s revolving line of credit.
As previously disclosed, in early July 2013, the lender on the Company’s
Kedron Village property non-recourse loan initiated foreclosure
proceedings and acquired title to the property in satisfaction of the
outstanding obligations. In the third quarter, the Company recognized a
$1.2 million non-cash gain from the extinguishment of the debt on the
property. Also in the third quarter of 2013, the Company reversed an
accrual for default interest and other interest expense totaling
approximately $1.2 million. The activities of the Kedron Village
property are reflected in discontinued operations in the Company’s
consolidated statements of operations for the three and nine months
ended September 30, 2013 and 2012.
Development
As of September 30, 2013, the Company
owned interests in three development projects under construction that
were in the aggregate 79.2% pre-leased or committed, a 260 basis point
increase from the end of the prior quarter. The total estimated cost of
these projects is approximately $263.5 million, of which approximately
$195.1 million had been incurred as of September 30, 2013.
Redevelopment
As of September 30, 2013, the Company
owned three redevelopment properties under construction that were in the
aggregate 88.5% pre-leased or committed. Four Corner Square, in Seattle,
Washington, is substantially complete and is anchored by Walgreens,
Grocery Outlet and Do it Best Hardware. Construction continues on LA
Fitness at Bolton Plaza, in Jacksonville, Florida. This tenant will
anchor the center along with Academy Sports and Outdoors. During the
third quarter, the Company began the redevelopment of King’s Lake Square
in Naples, Florida with the commencement of construction on a new and
upgraded Publix grocery store.
Capital Markets Activities
- Amended the unsecured term loan and increased the borrowings to
$230 million.
- Retired mortgage debt at the Ridge Plaza in Oak Ridge, New Jersey
and 30 South Meridian in Indianapolis, Indiana.
Duringthe third quarter, the Company amended its unsecured term
loan (the “Term Loan”) and increased the borrowing thereunder from $125
million to $230 million. The $105 million of additional proceeds were
primarily used to pay down amounts outstanding under the Company’s
revolving line of credit. The maturity date of the amended Term Loan is
February 21, 2019, including a six-month extension option and the
LIBOR-based interest rate was reduced to LIBOR plus 145 to 245 basis
points, depending on the Company’s leverage, a decrease of between 45 to
65 basis points across the leverage grid.
In August 2013, the Company retired the $14.1 million mortgage loan
secured by its Ridge Plaza operating property and added this property to
its unencumbered property collateral pool. Subsequent to the end of the
quarter, the Company retired the $20.1 million mortgage secured by its
30 South Meridian operating property. The Company intends to secure
property-level debt on this asset in the near term. Both loans were
retired through draws on the Company’s revolving line of credit.
Distributions
On September 19, 2013, the Board of Trustees declared a quarterly common
share cash distribution of $0.06 per common share for the quarter ended
September 30, 2013 payable to shareholders of record as of October 4,
2013. This distribution was paid on October 11, 2013. The Board of
Trustees anticipates declaring a quarterly cash distribution for the
quarter ending December 31, 2013 later in the fourth quarter.
2013 Earnings Guidance
The Company is modifying its as adjusted FFO guidance range for the year
ending December 31, 2013 to be within a range of $0.47 to $0.48 per
diluted common share from its previous guidance of $0.45 to $0.48 per
diluted common share. A gain on debt extinguishment and accelerated
write-offs of deferred financing costs are reflected as adjustments to
FFO in the earnings guidance. The Company is also revising its same
property net operating income guidance to be within a range of 4.0% to
4.5% from 3.0% to 4.0% and its net income guidance to be a net loss
within a range of $(0.12) to $(0.13) per diluted common share.
Following is a reconciliation of the range of 2013 estimated net loss
per diluted common share to estimated FFO and as adjusted FFO per
diluted common share:
| Guidance Range for 2013
|
|
|
|
| Low |
|
| High |
|
Net loss per diluted common share
| | | | |
$
|
(0.13
|
)
| | |
$
|
(0.12
|
)
|
|
Depreciation and amortization
| | | | |
0.55
| | | |
0.55
| |
|
Impairment charge
| | | | |
0.06
|
| | |
0.06
|
|
|
FFO per diluted common share
| | | | |
0.48
| | | |
0.49
| |
|
Gain on debt extinguishment and accelerated write-offs of deferred
financing costs
| | | | |
(0.01
|
)
| | |
(0.01
|
)
|
|
FFO per diluted common share, as adjusted
| | | | |
$
|
0.47
|
| | |
$
|
0.48
|
|
| | | | | | | | | | | |
|
Non-GAAP Financial Measures
Given the nature of the
Company’s business as a real estate owner and operator, the Company
believes that FFO and FFO, as adjusted, are helpful to investors when
measuring operating performance because they exclude 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, a gain on debt extinguishment in the third quarter of
2013 and the write-off of deferred financing costs in the third quarter
of 2013, first quarter of 2013 and 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 adjusted FFO are included in the
attached table.
The Company believes that 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.
Earnings Conference Call
The Company will conduct a conference call to discuss its financial
results on Friday, November 1st at 1:00 p.m. eastern time. A
live webcast of the conference call will be available online on the
Company’s corporate website at www.kiterealty.com.
The dial-in numbers are (866) 713-8563 for domestic callers and (617)
597-5311 for international callers (passcode 98276992). In addition, a
telephonic replay of the call will be available until February 1, 2014.
The replay dial-in telephone numbers are (888) 286-8010 for domestic
callers and (617) 801-6888 for international callers (passcode 33300136).
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, 2013, the Company owned interests in a
portfolio of 62 operating and redevelopment properties totaling
approximately 9.5 million square feet and three properties currently
under development totaling 1.2 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 slowing of growth in the U.S. economy; 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, Texas and North Carolina; 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,
2012, 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,
2013 | | | December 31,
2012 | |
| Assets: | | | | | | | | | | | |
|
Investment properties, at cost:
| | | | | | | | | | | |
|
Land
| | | | |
$
|
291,903,083
| | |
$
|
239,690,837
| |
|
Land held for development
| | | | | |
56,078,478
| | | |
34,878,300
| |
|
Buildings and improvements
| | | | | |
1,062,256,323
| | | |
892,508,729
| |
|
Furniture, equipment and other
| | | | | |
4,872,339
| | | |
4,419,918
| |
|
Construction in progress
| | | | | |
112,921,957
| | | |
223,135,354
| |
| | | | | |
1,528,032,180
| | | |
1,394,633,138
| |
|
Less: accumulated depreciation
| | | | | |
(220,782,063
|
)
| | |
(194,297,531
|
)
|
| | | | | |
1,307,250,117
| | | |
1,200,335,607
| |
|
Cash and cash equivalents
| | | | | |
12,130,048
| | | |
12,482,701
| |
|
Tenant receivables, including accrued straight-line rent of
$13,698,484 and $12,189,449, respectively, net of allowance for
uncollectible accounts
| | | | | |
22,373,621
| | | |
21,210,754
| |
|
Other receivables
| | | | | |
5,937,729
| | | |
4,946,219
| |
|
Escrow deposits
| | | | | |
11,389,473
| | | |
12,960,488
| |
|
Deferred costs, net
| | | | | |
41,187,441
| | | |
35,322,792
| |
|
Prepaid and other assets
| | | | | |
4,018,249
| | | |
1,398,344
| |
| Total Assets | | | | |
$
|
1,404,286,678
| | |
$
|
1,288,656,905
| |
| | | | | | | | | | |
|
| Liabilities and Equity: | | | | | | | | | | | |
|
Mortgage and other indebtedness
| | | | |
$
|
743,984,742
| | |
$
|
699,908,768
| |
|
Accounts payable and accrued expenses
| | | | | |
50,637,642
| | | |
54,187,172
| |
|
Deferred revenue and other liabilities
| | | | | |
18,217,210
| | | |
20,269,501
| |
| Total Liabilities | | | | | |
812,839,594
| | | |
774,365,441
| |
| | | | | | | | | | |
|
|
Commitments and contingencies
| | | | | | | | | | | |
| | | | | | | | | | |
|
|
Redeemable noncontrolling interests in the Operating Partnership | | | | | |
40,114,022
| | | |
37,669,803
| |
| | | | | | | | | | |
|
| Equity: | | | | | | | | | | | |
| Kite Realty Group Trust Shareholders’ Equity: | | | | | | | | | | | |
|
Preferred Shares, $.01 par value, 40,000,000 shares authorized,
4,100,000 shares issued and outstanding, respectively
| | | | | |
102,500,000
| | | |
102,500,000
| |
|
Common Shares, $.01 par value, 200,000,000 shares authorized
93,856,152 shares and 77,728,697 shares issued and outstanding,
respectively
| | | | | |
938,562
| | | |
777,287
| |
|
Additional paid in capital
| | | | | |
608,200,732
| | | |
513,111,877
| |
|
Accumulated other comprehensive loss
| | | | | |
(228,163
|
)
| | |
(5,258,543
|
)
|
|
Accumulated deficit
| | | | | |
(163,621,202
|
)
| | |
(138,044,264
|
)
|
| Total Kite Realty Group Trust Shareholders’ Equity | | | | | |
547,789,929
| | | |
473,086,357
| |
| Noncontrolling Interests | | | | | |
3,543,133
| | | |
3,535,304
| |
| Total Equity | | | | | |
551,333,062
| | | |
476,621,661
| |
| Total Liabilities and Equity | | | | |
$
|
1,404,286,678
| | |
$
|
1,288,656,905
| |
| | | | | | | | | | |
|
|
|
|
|
Kite Realty Group Trust Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2013 and 2012 (Unaudited) | |
|
|
|
|
| | |
| | |
| | | | | Three Months Ended
September 30, | | | Nine Months Ended
September 30, | |
| | | | | 2013 | |
| 2012 | | | 2013 | |
| 2012 | |
| Revenue: | | | | | | | | | | | | | | | | | | | |
|
Minimum rent
| | | | |
$
|
23,845,218
| | |
$
|
18,571,977
| | |
$
|
67,215,216
| | |
$
|
54,263,303
| |
|
Tenant reimbursements
| | | | | |
6,257,937
| | | |
4,897,578
| | | |
17,350,746
| | | |
14,170,945
| |
|
Other property related revenue
| | | | | |
2,568,468
| | | |
857,493
| | | |
9,300,135
| | | |
2,937,042
| |
| Total revenue | | | | | |
32,671,623
| | | |
24,327,048
| | | |
93,866,097
| | | |
71,371,290
| |
| Expenses: | | | | | | | | | | | | | | | | | | | |
|
Property operating
| | | | | |
5,448,738
| | | |
3,997,658
| | | |
15,582,301
| | | |
12,278,320
| |
|
Real estate taxes
| | | | | |
3,724,116
| | | |
3,180,390
| | | |
10,684,894
| | | |
9,458,334
| |
|
General, administrative, and other
| | | | | |
2,114,828
| | | |
1,645,048
| | | |
6,069,063
| | | |
5,255,804
| |
|
Acquisition costs
| | | | | |
153,314
| | | |
108,169
| | | |
566,826
| | | |
179,102
| |
|
Litigation charge
| | | | | |
—
| | | |
—
| | | |
—
| | | |
1,289,446
| |
|
Depreciation and amortization
| | | | | |
15,393,620
| | | |
10,831,282
| | | |
40,626,179
| | | |
29,435,053
| |
| Total expenses | | | | | |
26,834,616
| | | |
19,762,547
| | | |
73,529,263
| | | |
57,896,059
| |
| | | | | | | | | | | | | | | | | | |
|
| Operating income | | | | | |
5,837,007
| | | |
4,564,501
| | | |
20,336,834
| | | |
13,475,231
| |
|
Interest expense
| | | | | |
(7,600,413
|
)
| | |
(6,048,866
|
)
| | |
(20,988,919
|
)
| | |
(17,871,086
|
)
|
|
Income tax (expense)/benefit of taxable REIT subsidiary
| | | | | |
(30,596
|
)
| | |
13,385
| | | |
(106,477
|
)
| | |
5,995
| |
|
Other (expense)/income
| | | | | |
(47,013
|
)
| | |
99,914
| | | |
(39,150
|
)
| | |
98,207
| |
| Loss from continuing operations | | | | | |
(1,841,015
|
)
| | |
(1,371,066
|
)
| | |
(797,712
|
)
| | |
(4,291,653
|
)
|
| Discontinued operations: | | | | | | | | | | | | | | | | | | | |
|
Income from operations, excluding impairment charge
| | | | | |
1,353,827
| | | |
200,073
| | | |
484,907
| | | |
643,681
| |
|
Impairment charge
| | | | | |
—
| | | |
—
| | | |
(5,371,427
|
)
| | |
—
| |
|
Gain on debt extinguishment
| | | | | |
1,241,724
| | | |
—
| | | |
1,241,724
| | | |
—
| |
|
Gain (loss) on sale of operating property
| | | | | |
486,540
| | | |
(65,312
|
)
| | |
486,540
| | | |
5,180,568
| |
| Income (loss) from discontinued operations | | | | | |
3,082,091
| | | |
134,761
| | | |
(3,158,256
|
)
| | |
5,824,249
| |
| Consolidated net income (loss) | | | | | |
1,241,076
| | | |
(1,236,305
|
)
| | |
(3,955,968
|
)
| | |
1,532,596
| |
|
Net loss (income) attributable to noncontrolling interests
| | | | | |
15,174
| | | |
312,208
| | | |
651,327
| | | |
(1,513,591
|
)
|
Net income (loss) attributable to Kite Realty Group Trust | | | | | |
1,256,250
| | | |
(924,097
|
)
| | |
(3,304,641
|
)
| | |
19,005
| |
|
Dividends on preferred shares
| | | | | |
(2,114,063
|
)
| | |
(2,114,063
|
)
| | |
(6,342,188
|
)
| | |
(5,805,939
|
)
|
| Net loss attributable to common shareholders | | | | |
$
|
(857,813
|
)
| |
$
|
(3,038,160
|
)
| |
$
|
(9,646,829
|
)
| |
$
|
(5,786,934
|
)
|
| | | | | | | | | | | | | | | | | | |
|
| Net loss per common share attributable to Kite Realty Group Trust
common shareholders – basic and diluted | | | | | | | | | | | | | | | | | | | |
|
Loss from continuing operations attributable to common shareholders
| | | | |
$
|
(0.04
|
)
| |
$
|
(0.05
|
)
| |
$
|
(0.08
|
)
| |
$
|
(0.14
|
)
|
|
Income (loss) from discontinued operations attributable to common
shareholders
| | | | | |
0.03
| | | |
0.00
| | | |
(0.03
|
)
| | |
0.05
| |
|
Net loss attributable to common shareholders
| | | | |
$
|
(0.01
|
)
| |
$
|
(0.05
|
)
| |
$
|
(0.11
|
)
| |
$
|
(0.09
|
)
|
| | | | | | | | | | | | | | | | | | |
|
| Weighted average common shares outstanding – basic and diluted | | | | | |
93,803,896
| | | |
64,780,540
| | | |
87,626,746
| | | |
64,171,770
| |
| 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 | | | | |
$
|
(3,733,405
|
)
| |
$
|
(3,159,546
|
)
| |
$
|
(6,712,809
|
)
| |
$
|
(9,131,407
|
)
|
| Income (loss) from discontinued operations | | | | | |
2,875,592
| | | |
121,386
| | | |
(2,934,020
|
)
| | |
3,344,473
| |
| Net loss attributable to Kite Realty Group Trust common
shareholders | | | | |
$
|
(857,813
|
)
| |
$
|
(3,038,160
|
)
| |
$
|
(9,646,829
|
)
| |
$
|
(5,786,934
|
)
|
| | | | | | | | | | | | | | | | | | |
|
|
|
|
|
Kite Realty Group Trust Funds From Operations For the Three and Nine Months Ended September 30, 2013 and 2012 (Unaudited) | |
|
|
|
|
| | |
| | |
| | | | | Three Months Ended
September 30, | | | Nine Months Ended
September 30, | |
| | | | | 2013 | |
| 2012 | | | 2013 | |
| 2012 | |
|
Consolidated net income (loss)
| | | | |
$
|
1,241,076
| | |
$
|
(1,236,305
|
)
| |
$
|
(3,955,968
|
)
| |
$
|
1,532,596
| |
|
Less dividends on preferred shares
| | | | | |
(2,114,063
|
)
| | |
(2,114,063
|
)
| | |
(6,342,188
|
)
| | |
(5,805,939
|
)
|
|
Less net income attributable to noncontrolling interests in
properties
| | | | | |
(27,978
|
)
| | |
(35,228
|
)
| | |
(89,750
|
)
| | |
(111,642
|
)
|
|
Less (gain) loss on sale of operating properties
| | | | | |
(486,540
|
)
| | |
65,312
| | | |
(486,540
|
)
| | |
(5,180,568
|
)
|
|
Add impairment charge
| | | | | |
—
| | | |
—
| | | |
5,371,427
| | | |
—
| |
|
Add depreciation and amortization, net of noncontrolling interests
| | | | | |
15,379,237
| | | |
11,257,277
| | | |
41,019,039
| | | |
31,581,636
| |
|
Funds From Operations of the Kite Portfolio1 | | | | | |
13,991,732
| | | |
7,936,993
| | | |
35,516,020
| | | |
22,016,083
| |
|
Less redeemable noncontrolling interests in Funds From Operations
| | | | | |
(942,811
|
)
| | |
(799,648
|
)
| | |
(2,526,288
|
)
| | |
(2,324,421
| ) |
|
Funds From Operations allocable to the Company1 | | | | |
$
|
13,048,921
| | |
$
|
7,137,345
| | |
$
|
32,989,732
| | |
$
|
19,691,662
| |
| | | | | | | | | | | | | | | | | | |
|
|
Basic and Diluted FFO per share of the Kite Portfolio
| | | | |
$
|
0.14
| | |
$
|
0.11
| | |
$
|
0.38
| | |
$
|
0.31
| |
| | | | | | | | | | | | | | | | | | |
|
|
Funds From Operations of the Kite Portfolio
| | | | |
$
|
13,991,732
| | |
$
|
7,936,993
| | |
$
|
35,516,020
| | |
$
|
22,016,083
| |
|
Add back: litigation charge
| | | | | |
—
| | | |
—
| | | |
—
| | | |
1,289,446
| |
|
Less: gain on debt extinguishment
| | | | | |
(1,241,724
|
)
| | |
—
| | | |
(1,241,724
|
)
| | |
—
| |
|
Add back: accelerated amortization of deferred financing fees
| | | | | |
317,057
| | | |
—
| | | |
488,629
| | | |
500,028
| |
|
Funds From Operations of the Kite Portfolio, as adjusted
| | | | |
$
|
13,067,065
| | |
$
|
7,936,993
| | |
$
|
34,762,925
| | |
$
|
23,805,557
| |
|
Basic and Diluted FFO per share of the Kite Portfolio, as adjusted
| | | | |
$
|
0.13
| | |
$
|
0.11
| | |
$
|
0.37
| | |
$
|
0.33
| |
| | | | | | | | | | | | | | | | | | |
|
|
Basic weighted average Common Shares outstanding
| | | | | |
93,803,896
| | | |
64,780,540
| | | |
87,626,746
| | | |
64,171,770
| |
|
Diluted weighted average Common Shares outstanding
| | | | | |
94,068,890
| | | |
65,126,104
| | | |
87,904,526
| | | |
64,504,424
| |
|
Basic weighted average Common Shares and Units outstanding
| | | | | |
100,530,582
| | | |
71,956,742
| | | |
94,358,299
| | | |
71,785,927
| |
|
Diluted weighted average Common Shares and Units outstanding
| | | | | |
100,795,576
| | | |
72,302,306
| | | |
94,636,079
| | | |
72,118,581
| |
| | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
____________________
|
| | | | | |
1
|
|
|
“Funds From Operations of the Kite Portfolio” measures 100% of the
operating performance of the Operating Partnership’s real estate
properties 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, 2013 and 2012 (Unaudited) | |
|
|
|
|
| | |
|
| | |
| | | | | Three Months Ended September 30, | | | | Nine Months Ended September 30, | |
| | | | | 2013 | |
| 2012 | |
| % Change | | | | 2013 | |
| 2012 | |
| % Change | |
|
Number of properties at period end1 | | | | | |
47
| | | |
47
| | | | | | | |
47
| | | |
47
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Leased percentage at period-end
| | | | | |
95.8%
| | | |
93.6%
| | | | | | | |
95.8%
| | | |
93.6%
| | | | |
|
Occupied percentage at period-end
| | | | | |
92.1%
| | | |
90.6%
| | | | | | | |
92.1%
| | | |
90.6%
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Minimum rent
| | | | |
$
|
17,162,814
| | |
$
|
16,523,388
| | | | | | |
$
|
52,270,420
| | |
$
|
50,449,439
| | | | |
|
Tenant recoveries
| | | | | |
4,984,471
| | | |
4,690,889
| | | | | | | |
15,463,308
| | | |
14,238,425
| | | | |
|
Other income
| | | | | |
680,413
| | | |
674,508
| | | | | | | |
1,806,195
| | | |
1,852,819
| | | | |
| | | | | |
22,827,698
| | | |
21,888,785
| | | | | | | |
69,539,923
| | | |
66,540,683
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Property operating expenses
| | | | | |
4,775,050
| | | |
4,647,166
| | | | | | | |
14,523,351
| | | |
13,791,925
| | | | |
|
Real estate taxes
| | | | | |
3,193,626
| | | |
3,081,729
| | | | | | | |
9,871,195
| | | |
9,693,992
| | | | |
| | | | | |
7,968,676
| | | |
7,728,895
| | | | | | | |
24,394,546
| | | |
23,485,917
| | | | |
| Net operating income – same properties (47 properties)2 | | | | | | 14,859,022 | | | | 14,159,890 | | | 4.9 | % | | | | 45,145,377 | | | | 43,054,766 | | | 4.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Reconciliation to Most Directly Comparable GAAP Measure: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net operating income – same properties
| | | | |
$
|
14,859,022
| | |
$
|
14,159,890
| | | | | | |
$
|
45,145,377
| | |
$
|
43,054,766
| | | | |
|
Net operating income – non-same activity
| | | | | |
8,639,747
| | | |
3,002,495
| | | | | | | |
22,453,525
| | | |
6,579,870
| | | | |
|
Other (expense) income, net
| | | | | |
(77,609
|
)
| | |
99,914
| | | | | | | |
(145,627
|
)
| | |
104,202
| | | | |
|
General, administrative and acquisition expenses
| | | | | |
(2,268,142
|
)
| | |
(1,753,217
|
)
| | | | | | |
(6,635,889
|
)
| | |
(5,434,906
|
)
| | | |
|
Litigation charge
| | | | | |
-
| | | |
-
| | | | | | | |
-
| | | |
(1,289,446
|
)
| | | |
|
Impairment charge
| | | | | |
-
| | | |
-
| | | | | | | |
(5,371,427
|
)
| | |
-
| | | | |
|
Depreciation expense
| | | | | |
(15,393,620
|
)
| | |
(10,831,282
|
)
| | | | | | |
(40,626,179
|
)
| | |
(29,435,053
|
)
| | | |
|
Interest expense
| | | | | |
(7,600,413
|
)
| | |
(6,048,866
|
)
| | | | | | |
(20,988,919
|
)
| | |
(17,871,086
|
)
| | | |
|
Discontinued operations, excluding impairment charge
| | | | | |
1,353,827
| | | |
134,761
| | | | | | | |
484,907
| | | |
643,681
| | | | |
|
Gain on debt extinguishment
| | | | | |
1,241,724
| | | |
-
| | | | | | | |
1,241,724
| | | |
-
| | | | |
|
Gain on sale of operating properties
| | | | | |
486,540
| | | |
-
| | | | | | | |
486,540
| | | |
5,180,568
| | | | |
|
Net loss (income) attributable to noncontrolling interests
| | | | | |
15,174
| | | |
312,208
| | | | | | | |
651,327
| | | |
(1,513,591
|
)
| | | |
|
Dividends on preferred shares
| | | | | |
(2,114,063
|
)
| | |
(2,114,063
|
)
| | | | | | |
(6,342,188
|
)
| | |
(5,805,939
|
)
| | | |
|
Net loss attributable to common shareholders
| | | | |
$
|
(857,813
|
)
| |
$
|
(3,038,160
|
)
| | | | | |
$
|
(9,646,829
|
)
| |
$
|
(5,786,934
|
)
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
____________________
|
| | | | | |
1
|
|
|
Same Property analysis excludes operating properties in
redevelopment.
|
| | | | | |
2
| | |
Excludes net gains from outlot sales, straight-line rent revenue,
bad debt expense, lease termination fees, amortization of lease
intangibles and significant prior period expense recoveries and
adjustments, if any.
|
| | | | | | | | |
|
Kite Realty Group Trust
Dan Sink, Chief Financial Officer,
317-577-5609
dsink@kiterealty.com
or
Investors/Media:
Kite
Realty Group Trust
Adam Basch, Investor Relations, 317-578-5161
abasch@kiterealty.com
Source: Kite Realty Group Trust