INDIANAPOLIS--(BUSINESS WIRE)--
Kite Realty Group Trust (NYSE: KRG) (the “Company”) announced today
operating results for the second quarter ended June 30, 2015. Financial
statements and exhibits attached to this release include the details of
the results.
“We continue to deliver strong results and execute on our
strategic plan as evidenced by our second quarter performance,” said
John A. Kite, Chairman and CEO.“We have meticulously
redeployed the majority of our net sale proceeds including the purchase
of $145.8 million of premier unencumbered assets in our core markets.Our liquidity position and financial flexibility are the strongest
in our Company’s history as we remain dedicated to maintaining and
improving our investment grade balance sheet.The second
quarter is a testament to the team’s hard work and we are excited about
our reinvigorated redevelopment pipeline and the portfolio’s long-term
growth opportunities.”
Second Quarter And Other Recent Highlights
-
Generated Funds From Operations (“FFO”), as adjusted, of $41.6
million, or $0.49 per diluted common share.
-
Generated Adjusted Funds From Operations (“AFFO”) of $38.1 million, or
$0.44 per diluted common share.
-
Achieved same-property net operating income (“NOI”) growth of 3.7%
year-over-year.
-
Produced renewal cash rent spreads of 8.0%.
-
Increased annualized base rent (“ABR”) by over 13% to $15.25 per
square foot, compared to the same period last year.
-
Simplified the Company’s balance sheet further by purchasing two joint
venture partners’ interests at Beacon Hill and Bayport Commons.
-
Since March 31,2015, completed $145.8 million in
acquisitions including Colleyville Downs (MSA: Dallas), Belle Isle
Station (MSA: Oklahoma City) and Livingston Shopping Center (MSA: New
York-Northern New Jersey).
-
In July, agreed in principle to issue $250 million of private
placement senior unsecured notes at a blended fixed rate of 4.41%
across 8-year, 10-year and 12-year tranches for an average maturity of
approximately 9.8 years.
Second Quarter Financial Results
FFO, as adjusted, for the three months ended June 30, 2015, was $41.6
million, or $0.49 per diluted common share, for real estate properties
in which the Company’s operating subsidiaries own an interest (to which
we refer as the “Kite Portfolio”), compared to $17.4 million, or $0.50
per diluted common share, for the same period in the prior year.
FFO, as defined by NAREIT, was $45.8 million, or $0.54 per diluted
common share, for the Kite Portfolio, compared to $14.2 million, or
$0.41 per diluted common share, for the same period in the prior year.
Net income attributable to common shareholders for the three months
ended June 30, 2015, was $4.6 million compared to a net loss of $5.1
million for the same period in 2014.
Portfolio Activity During The Second Quarter
Development and Redevelopment
The Company’s three development projects, Phase II of Parkside Town
Commons, Phase II of Holly Springs, and Tamiami Crossing, were in
aggregate 83.9% pre-leased or committed as of June 30, 2015. These three
projects have a total estimated cost of approximately $170.0 million, of
which approximately $124.4 million had been incurred as of June 30, 2015.
Since last quarter, tenants occupying nearly 80,000 square feet have
opened at Parkside Town Commons Phase II, including Frank Theatres
CineBowl & Grille which opened early in July. Vertical construction at
Tamiami Crossing will commence in the third quarter as anchors Michaels
and Ulta Salon executed leases during the second quarter.
In addition to Gainesville Plaza, for which redevelopment is nearing
completion, Cool Springs Market was added to active redevelopment during
the second quarter. The project is expected to cost approximately $7.0
million and was 98.9% pre-leased or committed as of June 30, 2015. The
project consists of downsizing an existing Staples, expanding square
footage, replacing vacant space with a new DSW and Buy Buy Baby as well
as other quality-enhancing upgrades.
Acquisitions
Since March 31, 2015, the Company has acquired $145.8 million of real
estate assets. Colleyville Downs and Belle Isle Station closed in the
second quarter, and Livingston Shopping Center closed in July. The
acquisitions of these three unencumbered assets were largely funded
using net proceeds from non-core asset sales.
Colleyville Downs (Dallas)
As announced on April 2, 2015, the Company closed on the acquisition of
Colleyville Downs, a 201,000 square foot shopping center located in the
MSA of Dallas, Texas. The center is anchored by Petco and a newly
constructed Whole Foods Market that opened in 2014.
Colleyville Downs is on the southeast corner of Highway 26 and Glade
Road. The shopping center is well-positioned in a densely populated,
desirable market with an estimated population of 80,000 and an average
household income of $128,000, both within a 3-mile radius.
Belle Isle Station (Oklahoma City)
Belle Isle Station is an approximately 400,000 square foot shopping
center located in a premier fashion corridor, adjacent to the
best-performing shopping mall in Oklahoma City. The center is 98.5%
leased and anchored by best-in-class retailers Nordstrom Rack, Ross
Dress for Less, Ulta Salon, Babies “R” Us, Shoe Carnival, Old Navy and
Wal-Mart. The transaction closed on May 14, 2015.
Belle Isle Station is exceptionally located just 1.5 miles south of
Nichols Hills, one of the highest-income areas in Oklahoma City, with an
average household income of approximately $235,000 and average home
prices in excess of $1.3 million. The densely populated market area has
an estimated population of 200,000 within a 5-mile radius.
Livingston Shopping Center (New York-Northern New Jersey)
Livingston Shopping Center is a 140,000 square foot power center located
in a prime retail corridor of Livingston, New Jersey. Located in close
proximity to one of the top-10-sales-grossing malls in the country, the
center is 95% leased and anchored by Nordstrom Rack, DSW, TJ Maxx, Buy
Buy Baby, Cost Plus and Ulta Salon. The transaction closed July 24, 2015.
The Town of Livingston is located in affluent Essex County near New York
City and the Newark, New Jersey airport in an area with a median home
value over $535,000 in 2014. The power center benefits from strong
demographics, with an estimated population over 150,000 and average
household incomes of more than $170,000 within a 5-mile radius.
Capital Markets
During the second quarter, the Company exercised the accordion option on
its Unsecured Term Loan Facility which increased the amount outstanding
from $230 million to $400 million.
In July, the Company agreed in principle to issue $250 million of
private placement senior unsecured notes at a blended fixed rate of
4.41% across 8-year, 10-year and 12-year tranches for an average
maturity of approximately 9.8 years. The Company expects the notes to be
issued on or about September 10, 2015, subject to the negotiation and
execution of loan documents and customary closing conditions. There can
be no assurances that any of these conditions will be satisfied or that
the placement will occur on the terms described herein, or at all.
The Company intends to use the proceeds from the transactions to repay
existing indebtedness, unencumber additional assets, reduce floating
rate exposure and extend the average maturity of the Company’s debt.
Portfolio Operations
As of June 30, 2015, the Company owned interests in 119 operating
properties totaling approximately 24 million square feet. The owned GLA
in the Company’s retail operating portfolio was 94.9% leased as of June
30, 2015, and the Company’s overall portfolio was 94.8% leased,
excluding ground leases and non-owned anchors.
Same-property NOI, which includes 64 operating properties, increased
3.7% in the second quarter of 2015 compared to the same period in the
prior year. The leased percentage of these properties was 94.9% at June
30, 2015, compared to 95.4% at June 30, 2014, and the economic occupancy
increased to 92.9% in the second quarter compared to 92.5% at June 30,
2014.
The Company executed 77 leases totaling 419,537 square feet during the
second quarter of 2015. There were 57 comparable new and renewal leases
executed during the quarter for 335,395 square feet. Cash spreads on new
and renewal leases executed in the quarter increased approximately 8.0%.
2015 Earnings Guidance
The Company is revising its guidance for FFO, as adjusted, for the year
ending December 31, 2015, to $1.95 to $2.00 per diluted common share. In
April the Company had communicated its expectations for FFO, as
adjusted, to be between $1.93 to $2.00 per diluted common share.
The Company is also revising its acquisition guidance to $185 million
for the year, up from $125 million as previously communicated.
The Company’s 2015 guidance is based on a number of factors, many of
which are outside the Company’s control and all of which are subject to
change. The Company may change its guidance during the year if actual or
anticipated results vary from these assumptions.
Following is a reconciliation of the range of 2015 estimated net income
per diluted common share to estimated FFO per diluted common share:
| Updated Guidance Range for Full Year 2015 |
|
|
| Low |
|
|
| High |
|
Consolidated net income per diluted common share
| | | |
$
|
0.16
| | | | |
$
|
0.21
| |
|
Less: Dividends on preferred shares
| | | | |
(0.09
|
)
| | | | |
(0.09
|
)
|
|
Add: Depreciation, amortization and other
| | | | |
1.92
| | | | | |
1.92
| |
|
Less: Gain on sale of operating property
| | | | |
(0.04
|
)
| | | | |
(0.04
|
)
|
|
Less: Gain on settlement
| | | | |
(0.05
|
)
| | | | |
(0.05
|
)
|
|
Add: Debt extinguishment and preferred redemption costs
| | | |
|
0.05
|
|
|
|
|
|
0.05
|
|
| FFO, as adjusted, per diluted common share (1) | | | | $ | 1.95 |
|
|
|
| $ | 2.00 |
|
| | | | | | | | | | | |
|
(1)Excludes transaction costs.
Non-GAAP Financial Measures
Given the nature of the Company’s business as a real estate owner and
operator, the Company believes that FFO, FFO, as adjusted, and AFFO 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. We believe this supplemental
information provides a more meaningful measure of our operating
performance. The Company believes presenting FFO, FFO, as adjusted, and
AFFO 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, FFO, as adjusted, and AFFO are
included in the attached table.
Earnings Conference Call
The Company will conduct a conference call to discuss its financial
results on Thursday, July 30, 2015, 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 (866) 510-0712 for domestic callers and (617)
597-5380 for international callers (passcode 92045905). In addition, a
webcast replay link will be available on the corporate website.
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 June 30, 2015, the Company owned interests in a
portfolio of 122 operating, development and redevelopment properties
totaling approximately 25 million total square feet across 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.
Kite Realty Group Trust
Consolidated Balance Sheets
(Unaudited) |
|
| |
| |
| | June 30,
2015 | | December 31,
2014 |
| Assets: | | | | |
|
Investment properties, at cost
| |
$
|
3,876,592,422
| | |
$
|
3,732,747,979
| |
|
Less: accumulated depreciation
| |
(379,555,777
|
)
| |
(315,092,881
|
)
|
| |
3,497,036,645
| | |
3,417,655,098
| |
| | | |
|
|
Cash and cash equivalents1 | |
70,120,217
| | |
43,825,526
| |
|
Tenant and other receivables, including accrued straight-line rent
of $21,389,804 and $18,629,987, respectively, net of allowance for
uncollectible accounts
| |
44,376,055
| | |
48,096,669
| |
|
Restricted cash and escrow deposits
| |
23,749,963
| | |
16,170,973
| |
|
Deferred costs and intangibles, net
| |
151,928,836
| | |
159,977,680
| |
|
Prepaid and other assets
| |
8,663,844
| | |
8,847,088
| |
|
Assets held for sale
| |
—
|
| |
179,642,501
|
|
| Total Assets | |
$
|
3,795,875,560
|
| |
$
|
3,874,215,535
|
|
| Liabilities and Shareholders’ Equity: | | | | |
|
Mortgage and other indebtedness2 | |
$
|
1,618,614,378
| | |
$
|
1,554,263,020
| |
|
Accounts payable and accrued expenses
| |
79,760,005
| | |
75,149,213
| |
|
Deferred revenue and other liabilities
| |
142,323,115
| | |
136,409,308
| |
|
Liabilities held for sale
| |
—
|
| |
81,164,271
|
|
| Total Liabilities | |
1,840,697,498
| | |
1,846,985,812
| |
|
Commitments and contingencies
| | | | |
|
Limited Partners’ interests in the Operating Partnership and other
redeemable noncontrolling interests
| |
88,113,287
| | |
125,082,085
| |
| Shareholders’ Equity: | | | | |
| Kite Realty Group Trust Shareholders’ Equity: | | | | |
|
Preferred Shares, $.01 par value, 40,000,000 shares authorized,
4,100,000 shares issued and outstanding at June 30, 2015 and
December 31, 2014, respectively
| |
102,500,000
| | |
102,500,000
| |
|
Common Shares, $.01 par value, 225,000,000 shares authorized,
83,329,324 and 83,490,663 shares issued and outstanding at June 30,
2015 and December 31, 2014, respectively
| |
833,293
| | |
834,907
| |
|
Additional paid in capital
| |
2,049,136,498
| | |
2,044,424,643
| |
|
Accumulated other comprehensive loss
| |
(2,809,377
|
)
| |
(1,174,755
|
)
|
|
Accumulated deficit
| |
(283,606,623
|
)
| |
(247,801,217
|
)
|
| Total Kite Realty Group Trust Shareholders’ Equity | |
1,866,053,791
| | |
1,898,783,578
| |
|
Noncontrolling Interests
| |
1,010,984
|
| |
3,364,060
|
|
| Total Equity | |
1,867,064,775
|
| |
1,902,147,638
|
|
| Total Liabilities and Shareholders' Equity | |
$
|
3,795,875,560
|
| |
$
|
3,874,215,535
|
|
|
____________________
|
|
1
|
|
Includes $43.8 million at June 30, 2015 of funds set aside by the
Company to affect a tax deferred purchase of real estate.
|
|
2
| |
Includes debt premium of $25.2 million at June 30, 2015.
|
| |
|
Kite Realty Group Trust
Consolidated Statements of
Operations
For the Three and Six Months Ended June 30,
2015 and 2014
(Unaudited) |
|
| |
| |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| | 2015 |
| 2014 | | 2015 |
| 2014 |
| Revenue: | | | | | | | | |
|
Minimum rent
| |
$
|
64,897,478
| | |
$
|
31,221,687
| | |
$
|
130,376,865
| | |
$
|
62,481,723
| |
|
Tenant reimbursements
| |
16,488,775
| | |
8,315,228
| | |
35,103,861
| | |
17,478,089
| |
|
Other property related revenue
| |
2,349,050
|
| |
1,306,140
|
| |
5,083,190
|
| |
3,543,155
|
|
| Total revenue | |
83,735,303
| | |
40,843,055
| | |
170,563,916
| | |
83,502,967
| |
| Expenses: | | | | | | | | |
|
Property operating
| |
11,800,809
| | |
6,890,778
| | |
24,525,194
| | |
14,206,034
| |
|
Real estate taxes
| |
9,755,452
| | |
4,303,135
| | |
19,776,701
| | |
9,416,158
| |
|
General, administrative, and other
| |
4,565,790
| | |
2,313,358
| | |
9,571,636
| | |
5,419,460
| |
|
Merger and acquisition costs
| |
301,866
| | |
3,280,098
| | |
461,363
| | |
7,760,487
| |
|
Depreciation and amortization
| |
41,212,258
|
| |
19,737,108
|
| |
81,647,495
|
| |
37,176,713
|
|
| Total expenses | |
67,636,175
|
| |
36,524,477
|
| |
135,982,389
|
| |
73,978,852
|
|
| Operating income | |
16,099,128
| | |
4,318,578
| | |
34,581,527
| | |
9,524,115
| |
|
Interest expense
| |
(13,181,140
|
)
| |
(7,521,991
|
)
| |
(27,114,127
|
)
| |
(14,904,836
|
)
|
|
Income tax expense of taxable REIT subsidiary
| |
(68,922
|
)
| |
(75,614
|
)
| |
(124,023
|
)
| |
(22,468
|
)
|
|
Gain on settlement
| |
4,520,193
| | |
—
| | |
4,520,193
| | |
—
| |
|
Other (expense) income, net
| |
(134,277
|
)
| |
83,323
|
| |
(129,765
|
)
| |
(9,621
|
)
|
| Income (loss) from continuing operations | |
7,234,982
| | |
(3,195,704
|
)
| |
11,733,805
| | |
(5,412,810
|
)
|
| Discontinued operations: | | | | | | | | |
|
Gain on sale of operating property
| |
—
|
| |
—
|
| |
—
|
| |
3,198,772
|
|
| Income from discontinued operations | |
—
|
| |
—
|
| |
—
|
| |
3,198,772
|
|
| Income (loss) before gain on sale of operating properties | |
7,234,982
| | |
(3,195,704
|
)
| |
11,733,805
| | |
(2,214,038
|
)
|
|
Gain on sales of operating properties
| |
—
|
| |
—
|
| |
3,362,944
|
| |
3,489,338
|
|
| Net income (loss) | |
7,234,982
| | |
(3,195,704
|
)
| |
15,096,749
| | |
1,275,300
| |
|
Net (income) loss attributable to noncontrolling interest
| |
(508,304
|
)
| |
219,502
| | |
(1,191,370
|
)
| |
80,590
| |
|
Dividends on preferred shares
| |
(2,114,063
|
)
| |
(2,114,063
|
)
| |
(4,228,125
|
)
| |
(4,228,125
|
)
|
| Net income (loss) attributable to Kite Realty Group Trust common
shareholders | |
$
|
4,612,615
|
| |
$
|
(5,090,265
|
)
| |
$
|
9,677,254
|
| |
$
|
(2,872,235
|
)
|
| | | | | | | |
|
| Income (loss) per common share - basic and diluted: | | | | | | | | |
|
Continuing operations
| |
$
|
0.06
| | |
$
|
(0.16
|
)
| |
$
|
0.12
| | |
$
|
(0.16
|
)
|
|
Discontinued operations
| |
—
|
| |
—
|
| |
—
|
| |
0.08
|
|
| |
$
|
0.06
|
| |
$
|
(0.16
|
)
| |
$
|
0.12
|
| |
$
|
(0.08
|
)
|
| | | | | | | |
|
|
Weighted average common shares outstanding - basic
| |
83,506,078
|
| |
32,884,467
|
| |
83,519,013
|
| |
32,820,538
|
|
|
Weighted average common shares outstanding - diluted
| |
83,803,879
|
| |
32,884,467
|
| |
83,818,890
|
| |
32,820,538
|
|
| Common Dividends declared per common share | |
$
|
0.2725
|
| |
$
|
0.2600
|
| |
$
|
0.5450
|
| |
$
|
0.5000
|
|
| | | | | | | |
|
| Amounts attributable to Kite Realty Group Trust common
shareholders: | | | | | | | | |
|
Income (loss) from continuing operations
| |
$
|
4,612,615
| | |
$
|
(5,090,265
|
)
| |
$
|
9,677,254
| | |
$
|
(5,917,227
|
)
|
|
Income from discontinued operations
| |
—
|
| |
—
|
| |
—
|
| |
3,044,992
|
|
| Net income (loss) | |
$
|
4,612,615
|
| |
$
|
(5,090,265
|
)
| |
$
|
9,677,254
|
| |
$
|
(2,872,235
|
)
|
| | | | | | | | | | | | | | | |
|
Kite Realty Group Trust
Funds From Operations
For
the Three and Six Months Ended June 30, 2015 and 2014
(Unaudited) |
|
| |
| |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| | 2015 |
| 2014 | | 2015 |
| 2014 |
| Funds From Operations | | | | | | | | |
|
Consolidated net income (loss)
| |
$
|
7,234,982
| | |
$
|
(3,195,704
|
)
| |
$
|
15,096,749
| | |
$
|
1,275,300
| |
|
Less: dividends on preferred shares
| |
(2,114,063
|
)
| |
(2,114,063
|
)
| |
(4,228,125
|
)
| |
(4,228,125
|
)
|
|
Less: net income attributable to noncontrolling interests in
properties
| |
(414,113
|
)
| |
(49,842
|
)
| |
(1,001,065
|
)
| |
(76,475
|
)
|
|
Less: gains on sales of operating properties
| |
—
| | |
—
| | |
(3,362,944
|
)
| |
(6,784,887
|
)
|
|
Add: depreciation and amortization of consolidated entities, net of
noncontrolling interests
| |
41,131,866
|
| |
19,511,682
|
| |
81,424,770
|
| |
36,950,890
|
|
|
Funds From Operations of the Kite Portfolio
| |
45,838,672
| | |
14,152,073
| | |
87,929,385
| | |
27,136,703
| |
|
Less: Limited Partners' interests in Funds From Operations
| |
(924,281
|
)
| |
(679,739
|
)
| |
(1,730,879
|
)
| |
(1,304,591
|
)
|
|
Funds From Operations attributable to Kite Realty Group Trust common
shareholders1 | |
$
|
44,914,391
|
| |
$
|
13,472,334
|
| |
$
|
86,198,506
|
| |
$
|
25,832,112
|
|
|
FFO per share of the Operating Partnership - basic
| |
$
|
0.54
|
| |
$
|
0.41
|
| |
$
|
1.03
|
| |
$
|
0.79
|
|
|
FFO per share of the Operating Partnership - diluted
| |
$
|
0.54
|
| |
$
|
0.41
|
| |
$
|
1.03
|
| |
$
|
0.79
|
|
| | | | | | | |
|
|
Funds From Operations of the Kite Portfolio
| |
$
|
45,838,672
| | |
$
|
14,152,073
| | |
$
|
87,929,385
| | |
$
|
27,136,703
| |
|
Less: gain on settlement
| |
$
|
(4,520,193
|
)
| |
$
|
—
| | |
$
|
(4,520,193
|
)
| |
$
|
—
| |
|
Add: merger and acquisition costs
| |
301,866
|
| |
3,280,098
|
| |
461,363
|
| |
7,760,487
|
|
|
Funds From Operations of the Kite Portfolio, as adjusted
| |
$
|
41,620,345
|
| |
$
|
17,432,171
|
| |
$
|
83,870,555
|
| |
$
|
34,897,190
|
|
|
FFO per share of the Operating Partnership, as adjusted - basic
| |
$
|
0.49
|
| |
$
|
0.50
|
| |
$
|
0.98
|
| |
$
|
1.01
|
|
|
FFO per share of the Operating Partnership, as adjusted - diluted
| |
$
|
0.49
|
| |
$
|
0.50
|
| |
$
|
0.98
|
| |
$
|
1.01
|
|
| | | | | | | |
|
|
Weighted average Common Shares outstanding - basic
| |
83,506,078
|
| |
32,884,467
|
| |
83,519,013
|
| |
32,820,538
|
|
|
Weighted average Common Shares outstanding - diluted
| |
83,803,879
|
| |
32,936,272
|
| |
83,818,890
|
| |
32,870,821
|
|
|
Weighted average Common Shares and Units outstanding - basic
| |
85,231,284
|
| |
34,543,898
|
| |
85,202,110
|
| |
34,480,602
|
|
|
Weighted average Common Shares and Units outstanding - diluted
| |
85,529,084
|
| |
34,595,704
|
| |
85,501,987
|
| |
34,530,886
|
|
| | | | | | | | | | | |
|
|
____________________
|
|
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 attributable to
Kite Realty Group Trust common shareholders” reflects a reduction
for the redeemable noncontrolling weighted average diluted interest
in the Operating Partnership.
|
| |
|
Kite Realty Group Trust
Same Property Net Operating
Income
For the Three and Six Months Ended June 30,
2015 and 2014
(Unaudited) |
|
| | | |
| |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2015 |
| 2014 |
| %
Change | | 2015 |
| 2014 |
| %
Change |
|
Number of properties at period end1 | |
64
| | |
64
| | | | | | | | | |
| | | | | | | | | | | | | |
|
| Leased percentage at period end | |
94.9
|
%
| |
95.4
|
%
| | | |
94.9
|
%
| |
95.4
|
%
| | |
| Economic Occupancy percentage at period end2 | |
92.9
|
%
| |
92.5
|
%
| | | |
92.9
|
%
| |
92.5
|
%
| | |
| | | | | | | | | | | | | |
|
|
Minimum rent
| |
$
|
29,586,848
| | |
$
|
28,880,987
| | | | |
$
|
58,608,400
| | |
$
|
56,847,413
| | | |
|
Tenant recoveries
| |
8,204,571
| | |
8,205,650
| | | | |
17,052,697
| | |
16,887,597
| | | |
|
Other income
| |
526,760
|
| |
548,747
|
| | | |
1,380,668
|
| |
1,548,433
|
| | |
| |
38,318,179
| | |
37,635,384
| | | | |
77,041,765
| | |
75,283,443
| | | |
| | | | | | | | | | | | | |
|
|
Property operating expenses
| |
(5,404,124
|
)
| |
(5,885,816
|
)
| | | |
(13,039,410
|
)
| |
(13,756,322
|
)
| | |
|
Real estate taxes
| |
(4,884,128
|
)
| |
(4,711,216
|
)
| | | |
(10,006,607
|
)
| |
(9,627,666
|
)
| | |
| |
(10,288,252
|
)
| |
(10,597,032
|
)
| | | |
(23,046,017
|
)
| |
(23,383,988
|
)
| | |
| Net operating income - same properties3 | | $ | 28,029,927 | | | $ | 27,038,352 | | | 3.7 | % | | $ | 53,995,748 | | | $ | 51,899,455 | | | 4.0 | % |
| | | | | | | | | | | | | |
|
| Reconciliation of Same Property NOI to Most Directly Comparable
GAAP Measure: | | | | | | | | | | | | | | |
|
Net operating income - same properties
| |
$
|
28,029,927
| | |
$
|
27,038,352
| | | | |
$
|
53,995,748
| | |
$
|
51,899,455
| | | |
|
Net operating income - non-same activity
| |
34,149,115
| | |
2,610,790
| | | | |
72,266,273
| | |
7,981,320
| | | |
|
General, administrative and other
| |
(4,565,790
|
)
| |
(2,313,358
|
)
| | | |
(9,571,636
|
)
| |
(5,419,460
|
)
| | |
|
Merger and acquisition costs
| |
(301,866
|
)
| |
(3,280,098
|
)
| | | |
(461,363
|
)
| |
(7,760,487
|
)
| | |
|
Depreciation expense
| |
(41,212,258
|
)
| |
(19,737,108
|
)
| | | |
(81,647,495
|
)
| |
(37,176,713
|
)
| | |
|
Interest expense
| |
(13,181,140
|
)
| |
(7,521,991
|
)
| | | |
(27,114,127
|
)
| |
(14,904,836
|
)
| | |
|
Gain on settlement
| |
4,520,193
| | |
—
| | | | |
4,520,193
| | |
—
| | | |
|
Other (expense) income, net
| |
(203,199
|
)
| |
7,709
| | | | |
(253,788
|
)
| |
(32,089
|
)
| | |
|
Discontinued operations
| |
—
| | |
—
| | | | |
—
| | |
3,198,772
| | | |
|
Gains on sales of operating properties
| |
—
| | |
—
| | | | |
3,362,944
| | |
3,489,338
| | | |
|
Net (income) loss attributable to noncontrolling interests
| |
(508,304
|
)
| |
219,502
| | | | |
(1,191,370
|
)
| |
80,590
| | | |
|
Dividends on preferred shares
| |
(2,114,063
|
)
| |
(2,114,063
|
)
| | | |
(4,228,125
|
)
| |
(4,228,125
|
)
| | |
|
Net income (loss) attributable to common shareholders
| |
$
|
4,612,615
|
| |
$
|
(5,090,265
|
)
| | | |
$
|
9,677,254
|
| |
$
|
(2,872,235
|
)
| | |
| | | | | | | | | | | | | | | | | | | |
|
|
____________________
|
|
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 NOI 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150729006643/en/
Kite Realty Group Trust
Maggie Kofkoff, CFA, 317-713-7644
Media
& Investor Relations
mkofkoff@kiterealty.com
Source: Kite Realty Group Trust