INDIANAPOLIS--(BUSINESS WIRE)--
Kite Realty Group Trust (NYSE:KRG) (the “Company”) announced today its
operating results for the third quarter ended September 30, 2014. All
share and per share amounts in this release and in the exhibits have
been restated for the effects of the Company’s one-for-four reverse
share split in August 2014.
Third Quarter Highlights
- As adjusted for merger and acquisition costs, FFO was $43.8
million, or $0.51 per diluted common share, for the third quarter of
2014
- Same property net operating income growth of 4.7%
- Positive aggregate cash rent spread of 14.4%
- Announced definitive agreement to sell a 15-asset portfolio for
gross proceeds of approximately $318 million
- In October, received investment grade credit ratings from Moody’s
and Standard & Poor’s of Baa3 and BBB-, respectively
“The closing of the third quarter marks a marquee time for the Company
and we are pleased to report our strong performance,” said John A. Kite,
Chairman and CEO. “We delivered on our stated objectives and previously
announced financial targets, while remaining focused on our core
strategic goals. This quarter, with the merger and full integration
process behind us, we were able to deliver exceptional operating
results.”
“We now have the strongest balance sheet in our history. We have reduced
our net debt to EBITDA to approximately 6.5x, and by executing on our
balance sheet strategy, we were able to achieve investment grade credit
ratings. We continue to enhance our portfolio, highlighted by our
recently announced 15-asset disposition, which capitalizes on the
current transaction environment. This quarter’s results underscore the
significant steps the Company has taken, and we remain extremely
optimistic about the future for the new Kite.”
Third Quarter Financial Results
For the three months ended September 30, 2014, FFO was $24.7 million, or
$0.29 per diluted common share, for real estate properties in which
subsidiaries of the Company’s operating partnership owns an interest
(the “Kite Portfolio”), compared to $14.0 million, or $0.56 per diluted
common share, for the same period in the prior year. As adjusted for
costs associated with our completed merger with Inland Diversified Real
Estate Trust (“Inland Diversified”), FFO for the three months ended
September 30, 2014, was $43.8 million or $0.51 per diluted common share
for the Kite Portfolio, compared to $13.1 million, or $0.52 per diluted
common share, for the same period in the prior year. The reduction in
FFO was primarily driven by certain one-time items.
For the nine months ended September 30, 2014, FFO was $51.8 million or
$1.00 per diluted common share for the Kite Portfolio, compared to $35.5
million, or $1.50 per diluted common share for the same period of the
prior year. As adjusted for merger and acquisition costs of $26.8
million, FFO for the nine months ended September 30, 2014 was $78.7
million, or $1.52 per diluted common share for the Kite Portfolio,
compared to $34.8 million, or $1.47 per diluted common share, in the
same period of the prior year, which is adjusted for certain one-time
items.
Net loss attributable to common shareholders for the three months ended
September 30, 2014, was $16.4 million compared to a net loss of $0.9
million for the same period in 2013. Net losses attributable to common
shareholders during the three months ended September 30, 2014, and
September 30, 2013 includes merger and acquisition costs of $19.1
million and $0.2 million, respectively.
Net loss attributable to common shareholders was $19.3 million for the
first nine months of 2014, compared to a $9.6 million net loss in the
same period of the prior year. Net loss in the current year includes
merger and acquisition costs of $26.8 million, offset by gains on sales
of operating properties totaling $9.5 million. The prior year’s net loss
included a $5.4 million impairment charge.
Portfolio Operations
As of September 30, 2014, the Company owned interests in 126 operating
properties totaling approximately 25.6 million square feet. The owned
GLA, excluding ground leases and non-owned anchors, in the Company’s
retail operating portfolio was 94.9% leased as of September 30, 2014,
compared to 95.2% as of June 30, 2014 and 95.9% leased as of September
30, 2013.
Same property net operating income, which includes 50 operating
properties, increased 4.7% in the third quarter of 2014 compared to the
same period in the prior year. The leased percentage of these properties
increased to 96.4% at September 30, 2014, from 96.1% at September 30,
2013.
The Company executed 64 leases totaling 424,516 square feet during the
third quarter of 2014. There were 51 comparable new and renewal leases
executed during the quarter for 320,551 owned square feet. Cash spreads
on new leases executed in the quarter were up 43.9%, while cash spreads
on renewals were up 6.3% for a blended spread of 14.4%.
Real Estate Activity
Development
As of September 30, 2014, the Company owned interests in three
development projects under construction, estimated to total over 720,000
square feet, including Phase II of Holly Springs Towne Center and Phases
I and II of Parkside Town Commons, all near Raleigh, North Carolina.
Phase II of Holly Springs Towne Center is anchored by Carmike Cinemas,
Bed Bath & Beyond and DSW. Parkside Town Commons Phases I and II are
anchored by Target, Frank Theatres, Harris Teeter, PETCO, Golf Galaxy
and Field & Stream. Notable tenant openings in the quarter included
Dress Barn at Holly Springs Towne Center and PETCO, Golf Galaxy and
Field & Stream at Parkside Town Commons.
These projects were in the aggregate 74.3% pre-leased or committed as of
September 30, 2014, with a total estimated cost of approximately $156.5
million, of which approximately $111 million had been incurred as of
September 30, 2014.
Redevelopment
The Company substantially completed Bolton Plaza in Jacksonville,
Florida, a 155,000 square foot shopping center. This redevelopment
included a repositioning of existing space and was transitioned to the
operating portfolio during the quarter. Academy Sports and LA Fitness
occupy the former Wal-Mart building and Panera Bread is also a tenant at
the center.
In addition, Gainesville Plaza in Gainesville, Florida consists of
165,000 square feet, of which 81.6% is pre-leased or committed as of
September 30, 2014. The property is anchored by Burlington Coat Factory,
which opened during the quarter, and Ross Dress for Less.
Dispositions
On September 16, 2014, the Company announced it had entered into a
definitive agreement to sell 15 operating properties. The sale is
expected to close in two tranches on or before December 15, 2014, and
March 16, 2015, respectively, subject to the satisfaction of customary
closing conditions. The disposition includes properties either located
in non-core markets or deemed non-core by the Company from a qualitative
perspective. The proceeds will initially be used to retire debt and will
provide capital to later be deployed into acquisition opportunities in
markets which can increase scale and asset quality, consistent with the
Company’s operating strategy.
Also in the third quarter, the Company sold Zionsville Walgreens for
$7.35 million. This sale continues to reduce the Company’s exposure to
single tenant assets.
Distributions and Shareholders’ Equity
On September 19, 2014, the Board of Trustees declared a quarterly cash
dividend of $0.26 per common share, which was paid on October 13, 2014
to shareholders of record on October 6, 2014.
On August 7, 2014, the Board of Trustees declared a quarterly cash
dividend of $0.515625 per preferred share, which was paid on September
1, 2014 to shareholders of record on August 22, 2014.
On August 11, 2014, after market close, the Company completed a
one-for-four reverse share split of its common shares. As a result of
the reverse share split, the number of outstanding common shares of the
Company was reduced from approximately 332.7 million to approximately
83.2 million.
2014 Earnings Guidance
The Company is updating its FFO guidance as adjusted for the year ending
December 31, 2014, to be within a range of $2.00-2.04 per diluted common
share, excluding merger and acquisition costs. The Company’s
consolidated net loss guidance for the year is expected to be within the
range of $(0.20) to $(0.16) per diluted common share. This guidance is
restated to reflect the Company’s one-for-four reverse share split of
its common shares in August 2014. Utilizing the NAREIT whitepaper
definition of FFO, the Company’s guidance range would be $1.55 to $1.59
per diluted common share and reflects a reduction of $0.45 for costs
associated with its merger with Inland Diversified. The Company also is
increasing its 2014 guidance for same property net operating income to
4.4% - 4.6% growth over the prior year, up from 3.5% - 4.0%.
|
| |
| |
| Guidance Range for Full Year 2014 | | Low | | High |
|
Consolidated net loss per diluted common share
| |
$
|
(0.20
|
)
| |
$
|
(0.16
|
)
|
|
Less: Dividends on preferred shares
| | |
(0.14
|
)
| | |
(0.14
|
)
|
|
Less: Gains on sales of operating properties
| | |
(0.16
|
)
| | |
(0.16
|
)
|
|
Add: Depreciation and amortization and other
| |
|
2.05
|
|
|
|
2.05
|
|
|
FFO per diluted common share (NAREIT definition)
| | |
1.55
| | | |
1.59
| |
|
Add: Merger and acquisition costs
| |
|
0.45
|
|
|
|
0.45
|
|
|
FFO per diluted common share, as adjusted
| |
$
|
2.00
|
|
|
$
|
2.04
|
|
| | | |
|
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, as adjusted for 2014 costs associated with our
merger with Inland Diversified and 2013 write-off of deferred loan costs
and non-cash gain on debt extinguishment. We believe this supplemental
information provides a more meaningful measure of our operating
performance. The Company believes presenting FFO and adjusted FFO in
this manner allows investors and other interested parties to form a more
meaningful assessment of the Company’s operating results.
Reconciliations of net income to FFO and adjusted FFO are included in
the attached table.
Earnings Conference Call
The Company will conduct a conference call to discuss its financial
results on Monday, November 3rd at 11:00 a.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 (877) 703-6104 for domestic callers and (857)
244-7303 for international callers (passcode 17742563). In addition, a
webcast replay of the call will be available until December 31, 2014.
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. As of September 30, 2014, the Company owned interests in
a portfolio of 132 operating, development and redevelopment properties
totaling approximately 26.7 million total square feet across 26 states.
For more information, please visit the Company’s website at www.kiterealty.com.
Safe Harbor
This press release contains certain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Such statements are based on
assumptions and expectations that may not be realized and are inherently
subject to risks, uncertainties and other factors, many of which cannot
be predicted with accuracy and some of which might not even be
anticipated. Future events and actual results, performance, transactions
or achievements, financial or otherwise, may differ materially from the
results, performance, transactions or achievements, financial or
otherwise, expressed or implied by the forward-looking statements.
Risks, uncertainties and other factors that might cause such
differences, some of which could be material, include, but are not
limited to: national and local economic, business, real estate and other
market conditions, particularly in light of low 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, property ownership and
management risks, the Company’s ability to maintain its status as a real
estate investment trust 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, the
dilutive effects of future offerings of issuing additional securities,
and other factors affecting the real estate industry generally. The
Company refers you to 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, 2013, 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, whether as a result of new information,
future events or otherwise.
|
| | |
| | |
Kite Realty Group Trust Consolidated Balance Sheets (Unaudited) | |
| | | | | |
|
| | September 30,
2014 | | | December 31,
2013 | |
| Assets: | | | | | | | | |
| | | | | | | |
|
|
Investment properties, at cost
| |
$
|
3,673,832,165
| | |
$
|
1,877,058,271
| |
|
Less: accumulated depreciation
| | |
(282,693,584
|
)
| | |
(232,580,267
|
)
|
| | |
3,391,138,581
| | | |
1,644,478,004
| |
|
Cash and cash equivalents
| | |
31,213,429
| | | |
18,134,320
| |
Tenant receivables, including accrued straight-line rent of
$17,304,875 and $14,490,070,
respectively, net of allowance
for uncollectible accounts
| | |
38,622,387
| | | |
24,767,556
| |
|
Other receivables
| | |
4,891,082
| | | |
4,566,679
| |
|
Restricted cash and escrow deposits
| | |
17,442,007
| | | |
11,046,133
| |
|
Deferred costs, net
| | |
168,237,357
| | | |
56,387,586
| |
|
Prepaid and other assets
| | |
12,072,887
| | | |
4,546,752
| |
|
Assets held for sale2 | | |
344,466,022
| | | |
-
| |
| Total Assets | |
$
|
4,008,083,752
| | |
$
|
1,763,927,030
| |
| | | | | | | |
|
| Liabilities and Shareholders’ Equity: | | | | | | | | |
|
Mortgage and other indebtedness1 | |
$
|
1,556,495,902
| | |
$
|
857,144,074
| |
|
Accounts payable and accrued expenses
| | |
87,823,304
| | | |
61,437,187
| |
|
Deferred revenue and other liabilities
| | |
141,864,601
| | | |
44,313,402
| |
|
Liabilities held for sale2 | | |
176,635,843
| | | |
-
| |
| Total Liabilities | | |
1,962,819,650
| | | |
962,894,663
| |
| | | | | | | |
|
|
Commitments and contingencies
| | | | | | | | |
| | | | | | | |
|
Limited Partners’ interests in the Operating Partnership and other
redeemable
noncontrolling interests
| | |
109,553,889
| | | |
43,927,540
| |
| | | | | | | |
|
| Shareholders’ Equity: | | | | | | | | |
| Kite Realty Group Trust Shareholders’ Equity: | | | | | | | | |
Preferred Shares, $.01 par value, 40,000,000 shares authorized,
4,100,000 and
4,100,000 shares issued and outstanding at
September 30, 2014 and
December 31, 2013, respectively
| | |
102,500,000
| | | |
102,500,000
| |
Common Shares, $.01 par value, 450,000,000 shares authorized,
83,459,618 shares and
32,706,554 shares issued and
outstanding at September 30, 2014 and
December 31, 2013,
respectively
| | |
834,596
| | | |
327,066
| |
|
Additional paid in capital
| | |
2,059,063,388
| | | |
822,507,368
| |
|
Accumulated other comprehensive income
| | |
1,151,247
| | | |
1,352,850
| |
|
Accumulated deficit
| | |
(231,202,890
|
)
| | |
(173,130,113
|
)
|
| Total Kite Realty Group Trust Shareholders’ Equity | | |
1,932,346,341
| | | |
753,557,171
| |
| Noncontrolling Interests | | |
3,363,872
| | | |
3,547,656
| |
| Total Equity | | |
1,935,710,213
| | | |
757,104,827
| |
| Total Liabilities and Equity | |
$
|
4,008,083,752
| | |
$
|
1,763,927,030
| |
| | | | | | | |
|
|
1
|
|
Includes debt premium of $27.5 million at September 30, 2014.
|
|
2
| |
See Other Financial Information for details.
|
|
| | | |
| | | |
| | | |
| | | |
Kite Realty Group Trust Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2014 and 2013 (Unaudited) | |
| | | | | | | | | | | | | | | |
|
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
| Revenue: | | | | | | | | | | | | | | | | |
|
Minimum rent
| |
$
|
69,033,444
| | |
$
|
23,726,468
| | |
$
|
131,515,166
| | |
$
|
66,858,966
| |
|
Tenant reimbursements
| | |
17,605,172
| | | |
6,257,937
| | | |
35,083,261
| | | |
17,350,746
| |
|
Other property related revenue
| | |
1,938,247
| | | |
2,568,468
| | | |
5,481,402
| | | |
9,300,135
| |
| Total revenue | | |
88,576,863
| | | |
32,552,873
| | | |
172,079,829
| | | |
93,509,847
| |
| Expenses: | | | | | | | | | | | | | | | | |
|
Property operating
| | |
11,850,627
| | | |
5,448,738
| | | |
26,056,661
| | | |
15,582,301
| |
|
Real estate taxes
| | |
10,631,555
| | | |
3,724,116
| | | |
20,047,713
| | | |
10,684,894
| |
|
General, administrative and other
| | |
3,938,758
| | | |
2,114,828
| | | |
9,358,218
| | | |
6,069,063
| |
|
Merger and acquisition costs
| | |
19,088,590
| | | |
153,314
| | | |
26,849,077
| | | |
566,826
| |
|
Depreciation and amortization
| | |
44,382,793
| | | |
15,373,538
| | | |
81,559,506
| | | |
40,565,934
| |
| Total expenses | | |
89,892,323
| | | |
26,814,534
| | | |
163,871,175
| | | |
73,469,018
| |
| | | | | | | | | | | | | | | |
|
| Operating (loss) income | | |
(1,315,460
|
)
| | |
5,738,339
| | | |
8,208,654
| | | |
20,040,829
| |
|
Interest expense
| | |
(15,386,192
|
)
| | |
(7,541,534
|
)
| | |
(30,291,028
|
)
| | |
(20,812,460
|
)
|
|
Income tax expense of taxable REIT subsidiary
| | |
(14,144
|
)
| | |
(30,596
|
)
| | |
(36,612
|
)
| | |
(106,477
|
)
|
|
Other expense, net
| | |
(13,070
|
)
| | |
(47,013
|
)
| | |
(119,469
|
)
| | |
(39,151
|
)
|
| Loss from continuing operations | | |
(16,728,866
|
)
| | |
(1,880,804
|
)
| | |
(22,238,455
|
)
| | |
(917,259
|
)
|
| Discontinued operations: | | | | | | | | | | | | | | | | |
|
Operating income from discontinued operations
| | |
-
| | | |
1,393,616
| | | |
-
| | | |
604,454
| |
|
Impairment charge
| | |
-
| | | |
-
| | | |
-
| | | |
(5,371,427
|
)
|
|
Non-cash gain on debt extinguishment
| | |
-
| | | |
1,241,724
| | | |
-
| | | |
1,241,724
| |
|
Gain on sale of operating property
| | |
-
| | | |
486,540
| | | |
3,198,772
| | | |
486,540
| |
| Income (loss) from discontinued operations | | |
-
| | | |
3,121,880
| | | |
3,198,772
| | | |
(3,038,709
|
)
|
|
(Loss) income before gain on sale of operating properties
| | |
(16,728,866
|
)
| | |
1,241,076
| | | |
(19,039,683
|
)
| | |
(3,955,968
|
)
|
|
Gain on sale of operating properties
| | |
2,749,403
| | | |
-
| | | |
6,335,518
| | | |
-
| |
| Net (loss) income | | |
(13,979,463
|
)
| | |
1,241,076
| | | |
(12,704,165
|
)
| | |
(3,955,968
|
)
|
Less: Net (income) loss attributable to noncontrolling interest | | |
(304,456
|
)
| | |
15,173
| | | |
(223,865
|
)
| | |
651,327
| |
| Less: Dividends on preferred shares | | |
(2,114,063
|
)
| | |
(2,114,063
|
)
| | |
(6,342,188
|
)
| | |
(6,342,188
|
)
|
Net loss attributable to Kite Realty Group Trust common
shareholders | |
$
|
(16,397,982
|
)
| |
$
|
(857,813
|
)
| |
$
|
(19,270,218
|
)
| |
$
|
(9,646,829
|
)
|
| | | | | | | | | | | | | | | |
|
| (Loss) income per common share– basic and diluted: | | | | | | | | | | | | | | | | |
|
Continuing operations
| |
$
|
(0.20
|
)
| |
$
|
(0.16
|
)
| |
$
|
(0.45
|
)
| |
$
|
(0.31
|
)
|
|
Discontinued operations
| | |
-
| | | |
0.12
| | | |
0.06
| | | |
(0.13
|
)
|
| |
$
|
(0.20
|
)
| |
$
|
(0.04
|
)
| |
$
|
(0.39
|
)
| |
$
|
(0.44
|
)
|
| | | | | | | | | | | | | | | |
|
Weighted average common shares outstanding – basic and
diluted | | |
83,455,900
| | | |
23,450,974
| | | |
49,884,469
| | | |
21,906,686
| |
| Common dividends declared per common share | |
$
|
0.26
| | |
$
|
0.24
| | |
$
|
0.76
| | |
$
|
0.72
| |
| | | | | | | | | | | | | | | |
|
Amounts attributable to Kite Realty Group Trust common
shareholders: | | | | | | | | | | | | | | | |
| Loss from continuing operations | |
$
|
(16,397,982
|
)
| |
$
|
(3,771,352
|
)
| |
$
|
(22,366,523
|
)
| |
$
|
(6,824,266
|
)
|
| Income (loss) from discontinued operations | | |
-
| | | |
2,913,539
| | | |
3,096,305
| | | |
(2,822,563
|
)
|
| Net loss | |
$
|
(16,397,982
|
)
| |
$
|
(857,813
|
)
| |
$
|
(19,270,218
|
)
| |
$
|
(9,646,829
|
)
|
| | | | | | | | | | | | | | | |
|
|
1
|
|
Share and per share information has been restated for the effects
of the Company’s one-for-four reverse share split in August 2014.
|
|
| |
| |
Kite Realty Group Trust Funds From Operations For the Three and Nine Months Ended September 30, 2014 and 2013 (Unaudited) |
| | | |
|
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| | 2014 |
| 2013 | | 2014 |
| 2013 |
| Funds From Operations | | | | | | | | | | | | | | | | |
|
Consolidated net (loss) income
| |
$
|
(13,979,463
|
)
| |
$
|
1,241,076
| | |
$
|
(12,704,165
|
)
| |
$
|
(3,955,968
|
)
|
|
Less: dividends on preferred shares
| | |
(2,114,063
|
)
| | |
(2,114,063
|
)
| | |
(6,342,188
|
)
| | |
(6,342,188
|
)
|
|
Less: net income attributable to noncontrolling interests in
properties
| | |
(678,828
|
)
| | |
(27,978
|
)
| | |
(757,069
|
)
| | |
(89,750
|
)
|
|
Less: gain on sale of operating properties
| | |
(2,749,403
|
)
| | |
(486,540
|
)
| | |
(9,534,290
|
)
| | |
(486,540
|
)
|
|
Add: impairment charge
| | |
-
| | | |
-
| | | |
-
| | | |
5,371,427
| |
Add: depreciation and amortization of consolidated entities, net of
noncontrolling
interests
| | |
44,208,215
| | | |
15,379,237
| | | |
81,160,870
| | | |
41,019,039
| |
|
Funds From Operations of the Operating Partnership | | |
24,686,458
| | | |
13,991,732
| | | |
51,823,158
| | | |
35,516,020
| |
|
Less Limited Partners' interests in Funds From Operations
| | |
(353,750
|
)
| | |
(942,811
|
)
| | |
(1,658,341
|
)
| | |
(2,526,288
|
)
|
|
Funds From Operations allocable to the Company1 | |
$
|
24,332,708
| | |
$
|
13,048,921
| | |
$
|
50,164,817
| | |
$
|
32,989,732
| |
|
Basic FFO per share of the Operating Partnership (NAREIT definition)
| |
$
|
0.29
| | |
$
|
0.56
| | |
$
|
1.01
| | |
$
|
1.51
| |
|
Diluted FFO per share of the Operating Partnership (NAREIT
definition)
| |
$
|
0.29
| | |
$
|
0.56
| | |
$
|
1.00
| | |
$
|
1.50
| |
| | | | | | | | | | | | | | | |
|
|
Funds From Operations of the Operating Partnership | |
$
|
24,686,458
| | |
$
|
13,991,732
| | |
$
|
51,823,159
| | |
$
|
35,516,020
| |
|
Add write-off of loan fees on early repayment of debt
| | |
-
| | | |
317,057
| | | |
-
| | | |
488,629
| |
|
Add: Merger related costs
| | |
19,088,590
| | | |
-
| | | |
26,849,077
| | | |
-
| |
|
Less: Gain on debt extinguishment
| | |
-
| | | |
(1,241,724
|
)
| | |
-
| | | |
(1,241,724
|
)
|
|
Funds From Operations of the Kite Portfolio as adjusted
| |
$
|
43,775,048
| | |
$
|
13,067,065
| | |
$
|
78,672,236
| | |
$
|
34,762,925
| |
|
Basic FFO per share of the Operating Partnership, as adjusted
| |
$
|
0.51
| | |
$
|
0.52
| | |
$
|
1.53
| | |
$
|
1.47
| |
|
Diluted FFO per share of the Operating Partnership, as adjusted
| |
$
|
0.51
| | |
$
|
0.52
| | |
$
|
1.52
| | |
$
|
1.47
| |
|
Basic weighted average Common Shares outstanding
| | |
83,455,900
| | | |
23,450,974
| | | |
49,884,469
| | | |
21,906,686
| |
|
Diluted weighted average Common Shares outstanding
| | |
83,718,735
| | | |
23,517,222
| | | |
50,145,571
| | | |
21,976,131
| |
|
Basic weighted average Common Shares and Units outstanding
| | |
85,114,237
| | | |
25,132,645
| | | |
51,543,952
| | | |
23,589,574
| |
|
Diluted weighted average Common Shares and Units outstanding
| | |
85,377,073
| | | |
25,198,894
| | | |
51,805,054
| | | |
23,659,019
| |
|
1
|
|
“Funds From Operations of the Kite Portfolio 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, 2014 and 2013 (Unaudited) | |
| | | | | |
|
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | 2014 | |
| 2013 | | %
Change | | | 2014 | |
| 2013 | |
| %
Change | |
|
Number of properties at period end1 | | |
50
| | | |
50
| | | | | |
50
| | | |
50
| | | | |
| | | | | | | | | | | | | | | | | | | | |
|
| Leased percentage at period end | | |
96.4%
| | | |
96.1%
| | | | | |
96.4%
| | | |
96.1%
| | | | |
| Economic Occupancy percentage at period end 2 | | |
94.9%
| | | |
92.8%
| | | | | |
94.9%
| | | |
92.8%
| | | | |
| | | | | | | | | | | | | | | | | | | | |
|
|
Minimum rent
| | $ |
19,845,719
| | |
$
|
19,087,381
| | | | | $ |
56,988,100
| | |
$
|
54,604,856
| | | | |
|
Tenant recoveries
| | |
5,698,457
| | | |
5,642,824
| | | | | |
17,234,056
| | | |
16,300,109
| | | | |
|
Other income
| | |
608,902
| | | |
687,021
| | | | | |
1,866,890
| | | |
1,809,407
| | | | |
| | |
26,153,078
| | | |
25,417,226
| | | | | |
76,089,046
| | | |
72,714,372
| | | | |
| | | | | | | | | | | | | | | | | | | | |
|
|
Property operating expenses
| | |
5,161,636
| | | |
5,218,913
| | | | | |
15,975,587
| | | |
15,127,255
| | | | |
|
Real estate taxes
| | |
3,430,190
| | | |
3,419,428
| | | | | |
10,324,768
| | | |
9,986,567
| | | | |
| | |
8,591,826
| | | |
8,638,341
| | | | | |
26,300,355
| | | |
25,113,822
| | | | |
| Net operating income – same properties (50 properties)3 | | $ | 17,561,252 | | | $ | 16,778,885 | | 4.7 | % | | $ | 49,788,691 | | | $ | 47,600,550 | | | 4.6 | % |
| | | | | | | | | | | | | | | | | | | | |
|
| Reconciliation to Most Directly Comparable GAAP Measure: | | | | | | | | | | | | | | | | | | | | | |
|
Net operating income - same properties
| |
$
|
17,561,252
| | |
$
|
16,778,885
| | | | |
$
|
49,788,691
| | |
$
|
47,600,550
| | | | |
|
Net operating income - non-same activity
| | |
48,533,429
| | | |
6,601,135
| | | | | |
76,186,764
| | | |
19,642,102
| | | | |
|
Other expense, net
| | |
(27,214
|
)
| | |
(77,609
|
)
| | | | |
(156,081
|
)
| | |
(145,628
|
)
| | | |
|
General and administrative expenses
| | |
(3,938,758
|
)
| | |
(2,114,828
|
)
| | | | |
(9,358,218
|
)
| | |
(6,069,063
|
)
| | | |
|
Merger and acquisition costs
| | |
(19,088,590
|
)
| | |
(153,314
|
)
| | | | |
(26,849,077
|
)
| | |
(566,826
|
)
| | | |
|
Impairment charge
| | |
-
| | | |
-
| | | | | |
-
| | | |
(5,371,427
|
)
| | | |
|
Depreciation expense
| | |
(44,382,793
|
)
| | |
(15,373,538
|
)
| | | | |
(81,559,506
|
)
| | |
(40,565,934
|
)
| | | |
|
Interest expense
| | |
(15,386,192
|
)
| | |
(7,541,534
|
)
| | | | |
(30,291,028
|
)
| | |
(20,812,460
|
)
| | | |
|
Discontinued operations
| | |
-
| | | |
3,121,880
| | | | | |
-
| | | |
2,332,718
| | | | |
|
Gain on sales of operating properties
| | |
2,749,403
| | | |
-
| | | | | |
9,534,290
| | | |
-
| | | | |
|
Net (income) loss attributable to noncontrolling interests
| | |
(304,456
|
)
| | |
15,173
| | | | | |
(223,865
|
)
| | |
651,327
| | | | |
|
Dividends on preferred shares
| | |
(2,114,063
|
)
| | |
(2,114,063
|
)
| | | | |
(6,342,188
|
)
| | |
(6,342,188
|
)
| | | |
|
Net loss attributable to common shareholders
| | $ |
(16,397,982
|
)
| | $ |
(857,813
|
)
| | | |
$
|
(19,270,218
|
)
| |
$
|
(9,646,829
|
)
| | | |
| | | | | | | | | | | | | | | | | | | | |
|
|
____________________
|
|
1
|
|
Same Property NOI analysis excludes operating properties in
redevelopment.
|
| |
|
|
2
| |
Excludes leases that are signed but for which tenants have not
commenced payment of cash rent.
|
| |
|
|
3
| |
Same Property net operating income excludes net gains from outlot
sales, straight-line rent revenue, bad debt expense and related
recoveries, lease termination fees, amortization of lease
intangibles 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:
Maggie
Kofkoff, 317-713-7644
Investor Relations
mkofkoff@kiterealty.com
Source: Kite Realty Group Trust