INDIANAPOLIS--(BUSINESS WIRE)-- Kite Realty Group Trust (NYSE:KRG) (the “Company”) today announced the completion of the sale of two unencumbered assets, Four Corner Square in Maple Valley, Washington and Cornelius Gateway in Cornelius, Oregon. The Company also announced it has paid off the $90 million mortgage associated with its City Center property in White Plains, New York.

The dispositions resulted in aggregate gross proceeds of approximately $45 million, which were used to partially fund the recent redemption of $102.5 million of the Company’s 8.25% preferred shares.

Four Corner Square is a 119,579 square foot shopping center, including ground leases, anchored by Grocery Outlet and Walgreens. CorneliusGateway is comprised of 21,326 square feet tenanted by FedEx Kinkos and Anytime Fitness.

In addition to the asset dispositions, the Company unencumbered its City Center property in White Plains, New York by repaying the $90 million in property-level debt with proceeds from a draw on the Company’s recently closed 7-year term loan. The early retirement of this debt resulted in a one-time debt extinguishment gain of approximately $5.4 million that is primarily attributable to the non-cash write-off of the premium associated with the debt that was recorded at the time of acquisition of the property in 2014. This one-time accounting benefit will not impact the Company’s 2015 Funds From Operations (“FFO”), as adjusted (the metric upon which the Company provides earnings guidance). The early debt retirement will, however, result in a $0.06 increase in 2015 FFO per diluted share, as defined by NAREIT, which will be partially offset by the previously disclosed $0.04 decrease in FFO per diluted share from the non-cash charge associated with the redemption of the Company’s preferred shares earlier this month.

“The sale of Four Corner Square and Cornelius Gateway demonstrates our ability to capitalize on the current market environment and strategically exit our non-core markets,” said John Kite, Chief Executive Officer. “The team’s efficient execution on these transactions allows us to deploy the proceeds in an accretive manner while further strengthening our investment grade balance sheet.”

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, 2015, the Company owned interests in a portfolio of 124 operating, development and redevelopment properties totaling approximately 25 million total square feet in 22 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, 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 Florida, Indiana 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, 2014, 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.

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Kite Realty Group Trust
Maggie Daniels, CFA
Media & Investor Relations
317-713-7644
mdaniels@kiterealty.com

Source: Kite Realty Group Trust