INDIANAPOLIS--(BUSINESS WIRE)--
Kite Realty Group Trust (NYSE: KRG) (the “Company”) announced today
operating results for the third quarter ended September 30, 2015.
Financial statements and exhibits attached to this release include the
details of the results.
“Our robust third quarter performance is a direct result of our
leasing momentum, balance sheet initiatives and continued operational
excellence,” said John Kite, Chief Executive Officer.“We
gained 130 basis points in small shop leasing and grew same-property net
operating income by 3.1%, with over 90% of our portfolio contributing to
the same-property pool.Upon funding the recently
announced $200 million term loan, we will only have approximately $100
million of securitized debt maturities through 2020.Our
investment grade credit metrics continue to improve ahead of our
scheduled objectives.With over $50 million in annual free
cash flow expected, we are energized about the future and the
shareholder value we will create.”
Third Quarter And Other Recent Highlights
-
Generated Funds From Operations (“FFO”), as adjusted, of $43.9
million, or $0.51 per diluted common share.
-
Generated Adjusted Funds From Operations (“AFFO”) of $39.1 million, or
$0.46 per diluted common share.
-
Achieved same-property net operating income (“NOI”) growth of 3.1%
(3.6%, excluding redevelopment initiatives) year-over-year.
-
Increased leased small shop space by 130 basis points to 87.5%.
-
Executed a record 107 leases across 796,233 square feet.
-
Produced new cash rent spreads of 36.9% and comparable renewal cash
rent spreads of 7.7%.
-
Completed the redeployment of the 15-asset disposition proceeds via
the previously announced acquisitions of Livingston Shopping Center
(New York-Northern New Jersey) and Chapel Hill Shopping Center (Fort
Worth-Dallas).
-
Issued $250 million of senior unsecured notes via a private placement
at a blended fixed rate of 4.41% for an average maturity of
approximately 9.8 years.
-
Significantly reduced floating rate debt exposure to 8% from 19% last
quarter.
-
In October, closed on a $200 million 7-year unsecured term loan at a
rate of LIBOR plus 160 basis points, which, combined with other
financing transactions, substantially satisfies all near-term
securitized maturities.
Third Quarter Financial Results
FFO, as adjusted, for the three months ended September 30, 2015, was
$43.9 million, or $0.51 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 $43.8 million,
or $0.51 per diluted common share, for the same period in the prior year.
FFO, as defined by NAREIT, was $42.8 million, or $0.50 per diluted
common share, for the Kite Portfolio, compared to $24.7 million, or
$0.29 per diluted common share, for the same period in the prior year.
The primary difference between FFO, as defined by NAREIT, and FFO, as
adjusted, in the prior year was due to merger and acquisition costs.
Portfolio Activity During The Third Quarter
Development and Redevelopment
The Company’s three development projects, Phase II of Parkside Town
Commons, Phase II of Holly Springs Towne Center, and Tamiami Crossing,
were in aggregate 86.3% pre-leased or committed as of September 30,
2015. These three projects have a total estimated cost of approximately
$170.0 million, of which approximately $136.4 million, or 80%, had been
incurred as of September 30, 2015.
The Company continues to maintain a pipeline of projects with an
expected total cost of approximately $120 million across redevelopment,
reposition and repurpose categories. As of the end of the third quarter,
12 of the 16 properties included in the pipeline remain in the operating
portfolio. The Company anticipates commencing active construction on
these projects within the next 18 months.
Portfolio Transactions
While being a net seller of over $100 million of non-core properties
since December of 2014, the Company completed its tax efficient
redeployment of disposition proceeds during the third quarter. The final
two acquisitions are outlined below.
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 95.4% 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.
Chapel Hill Shopping Center (Fort Worth-Dallas)
Chapel Hill Shopping Center is an approximately 200,000 square foot
shopping center located in the MSA of Fort Worth-Dallas, Texas. The
center is 97.8% leased and anchored by HEB Grocery’s premier Central
Market, The Container Store and Cost Plus World Market. The shopping
center also includes a strong lineup of other high-quality retailers
such as Ann Taylor, Beauty Brands, New Balance and Men’s Warehouse. The
transaction closed August 21, 2015.
Chapel Hill Shopping Center is located at the intersection of I-30 and
Hulen Street, one of the area’s most highly traveled crossroads, and
benefits from multiple access points and ease of entry. The densely
inhabited area has an estimated population of 275,000 residents within a
5-mile radius.
Capital Markets
Since June 30, 2015, the Company completed the previously announced $250
million senior unsecured private placement offering at a blended fixed
rate of 4.41% across 8-year, 10-year and 12-year tranches. The notes
have an average maturity of approximately 9.8 years which extended the
Company’s total weighted average debt maturity to 5.5 years from 4.8
years last quarter and reduced floating rate debt to 8% from 19% last
quarter.
In October, the Company announced the completion of a $200 million
7-year unsecured term loan bearing an interest rate of LIBOR plus 160
basis points. Similar to the private placement notes, the term loan
includes a delayed draw feature which is expected to be utilized to
closely match future funding needs. The Company intends to hedge a
portion of or the entire term loan.
In aggregate, these unsecured offerings will be used to repay all 2016
securitized debt maturities as well as unencumber the Company’s largest
asset, City Center at White Plains in New York.
Portfolio Operations
As of September 30, 2015, the Company owned interests in 115 operating
properties totaling approximately 23 million square feet. The owned GLA
in the Company’s retail operating portfolio was 95.4% leased as of
September 30, 2015, and the Company’s overall portfolio was 94.8%
leased, excluding ground leases and non-owned anchors.
Same-property NOI, which includes 110 operating properties, increased
3.1% in the third quarter of 2015 compared to the same period in the
prior year. The leased percentage of these properties was 95.4% at
September 30, 2015, compared to 94.9% at September 30, 2014, and the
economic occupancy was 93.6% at September 30, 2015 compared to 93.5% at
September 30, 2014.
The Company executed 107 leases totaling 796,233 square feet during the
third quarter of 2015. There were 72 comparable new and renewal leases
executed during the quarter for 584,275 square feet. Cash rent spreads
on new and renewal leases executed in the quarter were approximately
36.9% and 7.7%, respectively, for a blended cash rent spread of 13.1%.
2015 Earnings Guidance
The Company is revising its guidance for FFO, as adjusted, for the year
ending December 31, 2015, to $1.98 to $2.00 per diluted common share. In
July, the Company had communicated its expectations for FFO, as
adjusted, to be between $1.95 to $2.00 per diluted common share.
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
| |
$
|
0.17
| | |
$
|
0.19
| |
|
Add: Depreciation, amortization and other
| |
1.93
| | |
1.93
| |
|
Add: Debt extinguishment and preferred redemption costs
| |
0.04
| | |
0.04
| |
|
Less: Gain on sale of operating property
| |
(0.04
|
)
| |
(0.04
|
)
|
|
Less: Gain on settlement
| |
(0.05
|
)
| |
(0.05
|
)
|
|
Less: Dividends on preferred shares
| |
(0.09
|
)
| |
(0.09
|
)
|
|
Add: Acquisition costs
| |
0.02
|
|
|
0.02
|
|
| FFO, as adjusted, per diluted common share1 | |
$
|
1.98
|
|
|
$
|
2.00
|
|
|
____________________
|
|
1
|
|
Excludes acquisition 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 Friday, October 30, 2015, at 9:30 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) 840-7637 for domestic callers and (704)
908-0456 for international callers (passcode 15302034). 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 September 30, 2015, the Company owned interests in
a portfolio of 124 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) |
|
| |
| |
| | September 30,
2015 | | December 31,
2014 |
| | ($ in thousands) |
| Assets: | | | | |
|
Investment properties, at cost
| |
$
|
3,980,886
| | |
$
|
3,732,748
| |
|
Less: accumulated depreciation
| |
(410,328
|
)
| |
(315,093
|
)
|
| |
3,570,558
| | |
3,417,655
| |
| | | |
|
|
Cash and cash equivalents
| |
42,951
| | |
43,826
| |
|
Tenant and other receivables, including accrued straight-line rent
of $23,312 and $18,630 respectively, net of allowance for
uncollectible accounts
| |
47,353
| | |
48,097
| |
|
Restricted cash and escrow deposits
| |
15,713
| | |
16,171
| |
|
Deferred costs and intangibles, net
| |
150,983
| | |
159,978
| |
|
Prepaid and other assets
| |
10,089
| | |
8,847
| |
|
Assets held for sale
| |
—
|
| |
179,642
|
|
| Total Assets | |
$
|
3,837,647
|
| |
$
|
3,874,216
|
|
| Liabilities and Shareholders’ Equity: | | | | |
|
Mortgage and other indebtedness1 | |
$
|
1,679,843
| | |
$
|
1,554,263
| |
|
Accounts payable and accrued expenses
| |
90,148
| | |
75,150
| |
|
Deferred revenue and other liabilities
| |
137,554
| | |
136,409
| |
|
Liabilities held for sale
| |
—
|
| |
81,164
|
|
| Total Liabilities | |
1,907,545
| | |
1,846,986
| |
|
Commitments and contingencies
| | | | |
|
Limited Partners’ interests in the Operating Partnership and other
redeemable noncontrolling interests
| |
86,957
| | |
125,082
| |
| 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 September 30, 2015 and
December 31, 2014, respectively
| |
102,500
| | |
102,500
| |
|
Common Shares, $.01 par value, 225,000,000 shares authorized,
83,323,563 and 83,490,663 shares issued and outstanding at September
30, 2015 and December 31, 2014, respectively
| |
833
| | |
835
| |
|
Additional paid in capital
| |
2,050,915
| | |
2,044,425
| |
|
Accumulated other comprehensive loss
| |
(6,209
|
)
| |
(1,175
|
)
|
|
Accumulated deficit
| |
(305,902
|
)
| |
(247,801
|
)
|
| Total Kite Realty Group Trust Shareholders’ Equity | |
1,842,137
| | |
1,898,784
| |
|
Noncontrolling Interests
| |
1,008
|
| |
3,364
|
|
| Total Equity | |
1,843,145
|
| |
1,902,148
|
|
| Total Liabilities and Shareholders' Equity | |
$
|
3,837,647
|
| |
$
|
3,874,216
|
|
|
____________________
|
|
1
|
|
Includes debt premium of $23.9 million at September 30, 2015.
|
| |
|
Kite Realty Group Trust
Consolidated Statements of
Operations
For the Three and Nine Months Ended
September 30, 2015 and 2014
(Unaudited) |
|
| |
| |
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| | 2015 |
| 2014 | | 2015 |
| 2014 |
| | ($ in thousands, except per share data) |
| Revenue: | | | | | | | | |
|
Minimum rent
| |
$
|
66,279
| | |
$
|
69,033
| | |
$
|
196,656
| | |
$
|
131,515
| |
|
Tenant reimbursements
| |
16,787
| | |
17,605
| | |
51,891
| | |
35,083
| |
|
Other property related revenue
| |
4,081
|
| |
1,938
|
| |
9,163
|
| |
5,481
|
|
| Total revenue | |
87,147
| | |
88,576
| | |
257,710
| | |
172,079
| |
| Expenses: | | | | | | | | |
|
Property operating
| |
11,994
| | |
11,850
| | |
36,519
| | |
26,057
| |
|
Real estate taxes
| |
10,045
| | |
10,632
| | |
29,821
| | |
20,048
| |
|
General, administrative, and other
| |
4,559
| | |
3,939
| | |
14,131
| | |
9,358
| |
|
Merger and acquisition costs
| |
1,089
| | |
19,088
| | |
1,550
| | |
26,849
| |
|
Depreciation and amortization
| |
42,549
|
| |
44,383
|
| |
124,196
|
| |
81,559
|
|
| Total expenses | |
70,236
|
| |
89,892
|
| |
206,217
|
| |
163,871
|
|
| Operating income | |
16,911
| | |
(1,316
|
)
| |
51,493
| | |
8,208
| |
|
Interest expense
| |
(13,881
|
)
| |
(15,386
|
)
| |
(40,995
|
)
| |
(30,291
|
)
|
|
Income tax expense of taxable REIT subsidiary
| |
(9
|
)
| |
(14
|
)
| |
(134
|
)
| |
(37
|
)
|
|
Gain on settlement
| |
—
| | |
—
| | |
4,520
| | |
—
| |
|
Other expense, net
| |
(60
|
)
| |
(13
|
)
| |
(189
|
)
| |
(119
|
)
|
| Income (loss) from continuing operations | |
2,961
| | |
(16,729
|
)
| |
14,695
| | |
(22,239
|
)
|
| Discontinued operations: | | | | | | | | |
|
Gain on sale of operating property
| |
—
|
| |
—
|
| |
—
|
| |
3,199
|
|
| Income from discontinued operations | |
—
|
| |
—
|
| |
—
|
| |
3,199
|
|
| Income (loss) before gain on sale of operating properties | |
2,961
| | |
(16,729
|
)
| |
14,695
| | |
(19,040
|
)
|
|
Gain on sales of operating properties
| |
—
|
| |
2,749
|
| |
3,363
|
| |
6,336
|
|
| Net income (loss) | |
2,961
| | |
(13,980
|
)
| |
18,058
| | |
(12,704
|
)
|
|
Net income attributable to noncontrolling interest
| |
(435
|
)
| |
(304
|
)
| |
(1,626
|
)
| |
(224
|
)
|
|
Dividends on preferred shares
| |
(2,114
|
)
| |
(2,114
|
)
| |
(6,342
|
)
| |
(6,342
|
)
|
| Net income (loss) attributable to Kite Realty Group Trust common
shareholders | |
$
|
412
|
| |
$
|
(16,398
|
)
| |
$
|
10,090
|
| |
$
|
(19,270
|
)
|
| | | | | | | |
|
| Income (loss) per common share - basic and diluted: | | | | | | | | |
|
Continuing operations
| |
$
|
0.00
| | |
$
|
(0.20
|
)
| |
$
|
0.12
| | |
$
|
(0.45
|
)
|
|
Discontinued operations
| |
—
|
| |
—
|
| |
—
|
| |
0.06
|
|
| |
$
|
0.00
|
| |
$
|
(0.20
|
)
| |
$
|
0.12
|
| |
$
|
(0.39
|
)
|
| | | | | | | |
|
|
Weighted average common shares outstanding - basic
| |
83,325,074
|
| |
83,455,900
|
| |
83,453,660
|
| |
49,884,469
|
|
|
Weighted average common shares outstanding - diluted
| |
83,433,379
|
| |
83,718,735
|
| |
83,566,554
|
| |
50,145,571
|
|
| Common Dividends declared per common share | |
$
|
0.2725
|
| |
$
|
0.2600
|
| |
$
|
0.8175
|
| |
$
|
0.7600
|
|
| | | | | | | |
|
| Amounts attributable to Kite Realty Group Trust common
shareholders: | | | | | | | | |
|
Income (loss) from continuing operations
| |
$
|
412
| | |
$
|
(16,398
|
)
| |
$
|
10,090
| | |
$
|
(22,366
|
)
|
|
Income from discontinued operations
| |
—
|
| |
—
|
| |
—
|
| |
3,096
|
|
| Net income (loss) | |
$
|
412
|
| |
$
|
(16,398
|
)
| |
$
|
10,090
|
| |
$
|
(19,270
|
)
|
| | | | | | | | | | | | | | | |
|
Kite Realty Group Trust
Funds From Operations
For
the Three and Nine Months Ended September 30, 2015 and 2014
(Unaudited) |
|
| |
| |
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| | 2015 |
| 2014 | | 2015 |
| 2014 |
| | ($ in thousands, except share and per share data) |
| Funds From Operations | | | | | | | | |
|
Consolidated net income (loss)
| |
$
|
2,961
| | |
$
|
(13,980
|
)
| |
$
|
18,058
| | |
$
|
(12,704
|
)
|
|
Less: dividends on preferred shares
| |
(2,114
|
)
| |
(2,114
|
)
| |
(6,342
|
)
| |
(6,342
|
)
|
|
Less: net income attributable to noncontrolling interests in
properties
| |
(415
|
)
| |
(679
|
)
| |
(1,416
|
)
| |
(757
|
)
|
|
Less: gains on sales of operating properties
| |
—
| | |
(2,749
|
)
| |
(3,363
|
)
| |
(9,534
|
)
|
|
Add: depreciation and amortization of consolidated entities, net of
noncontrolling interests
| |
42,387
|
| |
44,208
|
| |
123,812
|
| |
81,161
|
|
|
Funds From Operations of the Kite Portfolio
| |
42,819
| | |
24,686
| | |
130,749
| | |
51,824
| |
|
Less: Limited Partners' interests in Funds From Operations
| |
(967
|
)
| |
(354
|
)
| |
(2,698
|
)
| |
(1,658
|
)
|
|
Funds From Operations attributable to Kite Realty Group Trust common
shareholders1 | |
$
|
41,852
|
| |
$
|
24,332
|
| |
$
|
128,051
|
| |
$
|
50,166
|
|
|
FFO per share of the Operating Partnership - basic
| |
$
|
0.50
|
| |
$
|
0.29
|
| |
$
|
1.53
|
| |
$
|
1.01
|
|
|
FFO per share of the Operating Partnership - diluted
| |
$
|
0.50
|
| |
$
|
0.29
|
| |
$
|
1.53
|
| |
$
|
1.00
|
|
| | | | | | | |
|
|
Funds From Operations of the Kite Portfolio
| |
$
|
42,819
| | |
$
|
24,686
| | |
$
|
130,749
| | |
$
|
51,824
| |
|
Less: gain on settlement
| |
$
|
—
| | |
$
|
—
| | |
$
|
(4,520
|
)
| |
$
|
—
| |
|
Add: merger and acquisition costs
| |
1,089
|
| |
19,088
|
| |
1,550
|
| |
26,849
|
|
|
Funds From Operations of the Kite Portfolio, as adjusted
| |
$
|
43,908
|
| |
$
|
43,774
|
| |
$
|
127,779
|
| |
$
|
78,673
|
|
|
FFO per share of the Operating Partnership, as adjusted - basic
| |
$
|
0.52
|
| |
$
|
0.51
|
| |
$
|
1.50
|
| |
$
|
1.53
|
|
|
FFO per share of the Operating Partnership, as adjusted - diluted
| |
$
|
0.51
|
| |
$
|
0.51
|
| |
$
|
1.50
|
| |
$
|
1.52
|
|
| | | | | | | |
|
|
Weighted average Common Shares outstanding - basic
| |
83,325,074
|
| |
83,455,900
|
| |
83,453,660
|
| |
49,884,469
|
|
|
Weighted average Common Shares outstanding - diluted
| |
83,433,379
|
| |
83,718,735
|
| |
83,566,554
|
| |
50,145,571
|
|
|
Weighted average Common Shares and Units outstanding - basic
| |
85,238,537
|
| |
85,114,237
|
| |
85,214,390
|
| |
51,543,952
|
|
|
Weighted average Common Shares and Units outstanding - diluted
| |
85,346,842
|
| |
85,377,073
|
| |
85,327,283
|
| |
51,805,054
|
|
|
____________________
|
|
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 Nine Months Ended September
30, 2015 and 2014
(Unaudited) |
|
| | | |
| | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2015 |
| 2014 |
| %
Change | | 2015 |
| 2014 |
| %
Change |
| | ($ in thousands) | | | | ($ in thousands) | | |
|
Number of properties at period end1 | |
110
| | |
110
| | | | |
110
| | |
110
| | | |
| | | | | | | | | | | | | | | |
|
| Leased percentage at period end | |
95.4
|
%
| |
94.9
|
%
| | | |
95.4
|
%
| |
94.9
|
%
| | |
| Economic Occupancy percentage at period end2 | |
93.6
|
%
| |
93.5
|
%
| | | |
93.6
|
%
| |
93.5
|
%
| | |
| | | | | | | | | | | | | | | |
|
|
Minimum rent
| |
$
|
58,606
| | |
$
|
57,681
| | | | |
$
|
117,214
| | |
$
|
114,528
| | | |
|
Tenant recoveries
| |
15,908
| | |
15,826
| | | | |
32,961
| | |
32,713
| | | |
|
Other income, including specialty leasing and overage rental income
| |
1,009
|
| |
726
|
| | | |
2,390
|
| |
2,275
|
| | |
| |
75,523
| | |
74,233
| | | | |
152,565
| | |
149,516
| | | |
| | | | | | | | | | | | | | | |
|
|
Property operating expenses
| |
(9,079
|
)
| |
(9,532
|
)
| | | |
(22,118
|
)
| |
(23,288
|
)
| | |
|
Real estate taxes
| |
(9,432
|
)
| |
(9,380
|
)
| | | |
(19,439
|
)
| |
(19,007
|
)
| | |
| |
(18,511
|
)
| |
(18,912
|
)
| | | |
(41,557
|
)
| |
(42,295
|
)
| | |
| Net operating income - same properties3 | | $ | 57,012 | | | $ | 55,321 | | | 3.1 | % | | $ | 111,008 | | | $ | 107,221 | | | 3.5 | % |
| | | | | | | | | | | | | | | |
|
| Reconciliation of Same Property NOI to Most Directly Comparable
GAAP Measure: | | | | | | | | | | | | | | | | |
|
Net operating income - same properties
| |
$
|
57,012
| | |
$
|
55,321
| | | | |
$
|
111,008
| | |
$
|
107,221
| | | |
|
Net operating income - non-same activity4 | |
8,096
| | |
10,773
| | | | |
80,362
| | |
18,753
| | | |
|
General, administrative and other
| |
(4,559
|
)
| |
(3,939
|
)
| | | |
(14,131
|
)
| |
(9,358
|
)
| | |
|
Merger and acquisition costs
| |
(1,089
|
)
| |
(19,088
|
)
| | | |
(1,550
|
)
| |
(26,849
|
)
| | |
|
Depreciation expense
| |
(42,549
|
)
| |
(44,383
|
)
| | | |
(124,196
|
)
| |
(81,559
|
)
| | |
|
Interest expense
| |
(13,881
|
)
| |
(15,386
|
)
| | | |
(40,995
|
)
| |
(30,291
|
)
| | |
|
Gain on settlement
| |
—
| | |
—
| | | | |
4,520
| | |
—
| | | |
|
Other expense, net
| |
(69
|
)
| |
(27
|
)
| | | |
(323
|
)
| |
(156
|
)
| | |
|
Discontinued operations
| |
—
| | |
—
| | | | |
—
| | |
3,199
| | | |
|
Gains on sales of operating properties
| |
—
| | |
2,749
| | | | |
3,363
| | |
6,336
| | | |
|
Net income attributable to noncontrolling interests
| |
(435
|
)
| |
(304
|
)
| | | |
(1,626
|
)
| |
(224
|
)
| | |
|
Dividends on preferred shares
| |
(2,114
|
)
| |
(2,114
|
)
| | | |
(6,342
|
)
| |
(6,342
|
)
| | |
|
Net income (loss) attributable to common shareholders
| |
$
|
412
|
| |
$
|
(16,398
|
)
| | | |
$
|
10,090
|
| |
$
|
(19,270
|
)
| | |
|
____________________
|
|
1
|
|
Same property 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 recoveries,
lease termination fees, amortization of lease intangibles and
significant prior year expense recoveries and adjustments, if any.
|
|
4
| |
Includes non-cash accounting items across the portfolio as well as
net operating income from properties not included in the same store
pool.
|
| |
|
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/20151029006061/en/
Kite Realty Group Trust
Maggie Kofkoff, CFA, 317-713-7644
Media
& Investor Relations
mkofkoff@kiterealty.com
Source: Kite Realty Group Trust