Kite Realty Group Reports Second Quarter 2025 Operating Results
Kite Realty Group (NYSE:KRG) reported strong Q2 2025 financial results with net income of $110.3 million ($0.50 per share), compared to a net loss of $48.6 million in Q2 2024. The company demonstrated robust operational performance with 1.2 million square feet leased at 17.0% blended cash spreads.
Key strategic moves included forming a second Joint Venture with GIC, generating $112.1 million in proceeds, selling Fullerton Metrocenter for $118.5 million, and issuing $300 million in senior unsecured notes. The company raised its 2025 guidance, with NAREIT FFO now expected between $2.06 to $2.10 per diluted share.
Operating metrics showed strength with Same Property NOI up 3.3%, retail portfolio leased percentage at 93.3%, and ABR per square foot increasing 5.4% year-over-year to $22.02.
Kite Realty Group (NYSE:KRG) ha riportato solidi risultati finanziari nel secondo trimestre 2025 con un utile netto di 110,3 milioni di dollari (0,50 dollari per azione), rispetto a una perdita netta di 48,6 milioni di dollari nel secondo trimestre 2024. L'azienda ha mostrato una performance operativa robusta con 1,2 milioni di piedi quadrati affittati a un margine di cassa misto del 17,0%.
Le mosse strategiche principali hanno incluso la formazione di una seconda joint venture con GIC, generando 112,1 milioni di dollari di proventi, la vendita del Fullerton Metrocenter per 118,5 milioni di dollari e l'emissione di 300 milioni di dollari in obbligazioni senior non garantite. L'azienda ha rivisto al rialzo le previsioni per il 2025, con l'FFO NAREIT ora previsto tra 2,06 e 2,10 dollari per azione diluita.
I parametri operativi hanno mostrato solidità con un incremento del NOI delle proprietà comparabili del 3,3%, una percentuale di locazione del portafoglio retail al 93,3% e un aumento dell'ABR per piede quadrato del 5,4% anno su anno a 22,02 dollari.
Kite Realty Group (NYSE:KRG) reportó sólidos resultados financieros en el segundo trimestre de 2025 con un ingreso neto de 110,3 millones de dólares (0,50 dólares por acción), en comparación con una pérdida neta de 48,6 millones de dólares en el segundo trimestre de 2024. La compañía demostró un desempeño operativo robusto con 1,2 millones de pies cuadrados arrendados a un margen de efectivo combinado del 17,0%.
Las principales acciones estratégicas incluyeron la formación de una segunda empresa conjunta con GIC, generando 112,1 millones de dólares en ingresos, la venta de Fullerton Metrocenter por 118,5 millones de dólares y la emisión de 300 millones de dólares en notas senior no garantizadas. La compañía elevó su guía para 2025, con un FFO NAREIT ahora esperado entre 2,06 y 2,10 dólares por acción diluida.
Los indicadores operativos mostraron fortaleza con un aumento del NOI de propiedades comparables del 3,3%, un porcentaje de ocupación del portafolio minorista del 93,3% y un incremento del ABR por pie cuadrado del 5,4% interanual hasta 22,02 dólares.
Kite Realty Group (NYSE:KRG)는 2025년 2분기에 순이익 1억 1,030만 달러(주당 0.50달러)를 기록하며, 2024년 2분기 순손실 4,860만 달러에서 크게 개선된 강력한 재무 성과를 발표했습니다. 회사는 1.2백만 평방피트의 임대와 17.0% 혼합 현금 스프레드로 견고한 운영 성과를 보였습니다.
주요 전략적 움직임으로는 GIC와 두 번째 합작 투자 설립(수익 1억 1,210만 달러), Fullerton Metrocenter 매각(1억 1,850만 달러), 그리고 3억 달러 규모의 선순위 무담보 채권 발행이 포함됩니다. 회사는 2025년 가이던스를 상향 조정하여 NAREIT FFO를 희석 주당 2.06달러에서 2.10달러 사이로 예상하고 있습니다.
운영 지표도 강세를 보였으며, 동일 자산 NOI 3.3% 증가, 소매 포트폴리오 임대율 93.3%, 그리고 평방피트당 ABR이 전년 대비 5.4% 상승한 22.02달러를 기록했습니다.
Kite Realty Group (NYSE:KRG) a publié de solides résultats financiers pour le deuxième trimestre 2025 avec un bénéfice net de 110,3 millions de dollars (0,50 dollar par action), contre une perte nette de 48,6 millions de dollars au deuxième trimestre 2024. La société a démontré une performance opérationnelle robuste avec 1,2 million de pieds carrés loués à des marges de trésorerie combinées de 17,0%.
Les principales initiatives stratégiques comprenaient la formation d'une deuxième coentreprise avec GIC, générant 112,1 millions de dollars de produits, la vente du Fullerton Metrocenter pour 118,5 millions de dollars et l'émission de 300 millions de dollars en obligations senior non garanties. La société a relevé ses prévisions pour 2025, avec un FFO NAREIT désormais attendu entre 2,06 et 2,10 dollars par action diluée.
Les indicateurs opérationnels ont montré une solidité avec une hausse de 3,3 % du NOI des propriétés comparables, un taux de location du portefeuille de détail de 93,3 % et une augmentation de 5,4 % en glissement annuel de l'ABR par pied carré à 22,02 dollars.
Kite Realty Group (NYSE:KRG) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettogewinn von 110,3 Millionen US-Dollar (0,50 US-Dollar pro Aktie), im Vergleich zu einem Nettoverlust von 48,6 Millionen US-Dollar im zweiten Quartal 2024. Das Unternehmen zeigte eine robuste operative Leistung mit 1,2 Millionen Quadratfuß vermieteter Fläche bei 17,0% gemischten Cash-Spreads.
Wichtige strategische Schritte umfassten die Gründung eines zweiten Joint Ventures mit GIC, das 112,1 Millionen US-Dollar an Erlösen generierte, den Verkauf des Fullerton Metrocenters für 118,5 Millionen US-Dollar und die Ausgabe von 300 Millionen US-Dollar an unbesicherten Senior-Anleihen. Das Unternehmen hob seine Prognose für 2025 an, wobei das NAREIT-FFO nun zwischen 2,06 und 2,10 US-Dollar je verwässerter Aktie erwartet wird.
Die operativen Kennzahlen zeigten Stärke mit einem 3,3%igen Anstieg des Same Property NOI, einer Vermietungsquote des Einzelhandelsportfolios von 93,3% und einem um 5,4% gegenüber dem Vorjahr gestiegenen ABR pro Quadratfuß auf 22,02 US-Dollar.
- Net income of $110.3 million in Q2 2025, compared to a net loss in Q2 2024
- Strong leasing activity with 17.0% blended cash spreads on 1.2 million square feet
- Same Property NOI increased by 3.3%
- Strategic JV with GIC generated $112.1 million in proceeds
- Successful asset monetization with $118.5 million sale of Fullerton Metrocenter
- ABR per square foot increased 5.4% year-over-year to $22.02
- Raised 2025 guidance for NAREIT FFO and Core FFO
- Retail portfolio leased percentage decreased 150 basis points year-over-year due to anchor bankruptcies
- Net debt to Adjusted EBITDA ratio at 5.1x
- Credit disruption impact of 1.85% of total revenues expected for 2025
Insights
KRG delivered strong Q2 2025 with profitable turnaround, strategic partnerships, and raised guidance, demonstrating excellent operational execution.
Kite Realty Group has delivered an exceptional Q2 2025 marked by a dramatic shift from losses to profits. The company reported
The operational metrics reveal substantial strength. KRG executed 170 leases covering 1.2 million square feet with
KRG has advanced its capital recycling program through strategic transactions. Their joint venture with GIC enabled the acquisition of Legacy West in Dallas/Fort Worth while simultaneously monetizing three larger shopping centers through a second JV structure, generating
On the balance sheet front, KRG issued
Most notably, management raised 2025 guidance, projecting Core FFO of
INDIANAPOLIS, July 30, 2025 (GLOBE NEWSWIRE) -- Kite Realty Group (NYSE: KRG), a premier owner and operator of high-quality, open-air grocery-anchored centers and vibrant mixed-use assets, reported today its operating results for the second quarter ended June 30, 2025. For the quarters ended June 30, 2025 and 2024, net income attributable to common shareholders was
Company raises 2025 guidance
Leased approximately 1.2 million square feet at
Formed a second Joint Venture (“JV”) with GIC by contributing three seed assets, generating gross proceeds of
Sold Fullerton Metrocenter (Los Angeles MSA) for gross proceeds of
Issued
“The KRG team delivered another outstanding quarter, driven by strong operational performance, excellent execution on the transactional front, and an opportunistic bond issuance,” said John A. Kite, Chairman and Chief Executive Officer. “Due to persistent and deep tenant demand across our centers, we are securing higher starting rents, improved embedded escalators, better-capitalized retailers, and a far more vibrant merchandising mix. Our disciplined sources-and-uses approach enabled us to buy a majority stake in Legacy West, monetize minority interests in three larger-format assets, and sell additional non-core assets in an earnings-accretive, value-enhancing manner.”
Second Quarter 2025 Financial and Operational Results
- Generated NAREIT FFO of the Operating Partnership of
$114.0 million , or$0.51 per diluted share. - Generated Core FFO of the Operating Partnership of
$113.2 million , or$0.50 per diluted share. - Same Property Net Operating Income (NOI) increased by
3.3% . - Executed 170 new and renewal leases representing approximately 1.2 million square feet.
- Blended cash leasing spreads of
17.0% on 133 comparable leases, including31.3% on 38 comparable new leases,19.7% on 52 comparable non-option renewals, and8.2% on 43 comparable option renewals. - Cash leasing spreads of
25.5% on a blended basis for comparable new and non-option renewal leases. - Executed 11 new anchor leases representing approximately 207,000 square feet at comparable cash leasing spreads of
36.6% .
- Blended cash leasing spreads of
- Operating retail portfolio annualized base rent (ABR) per square foot of
$22.02 at June 30, 2025, a5.4% increase year-over-year. - Retail portfolio leased percentage of
93.3% at June 30, 2025, a 150-basis point decrease year-over-year, primarily driven by recent anchor bankruptcies.- Small shop leased percentage of
91.6% at June 30, 2025, an 80-basis point increase year-over-year.
- Small shop leased percentage of
- Portfolio leased-to-occupied spread at period end of 290 basis points, which represents
$31.6 million of signed-not-open NOI.
Second Quarter 2025 Capital Allocation Activity
- As previously announced, entered into a JV with GIC with the purpose of co-investing in high-quality, open-air retail and mixed-use assets. The JV completed the acquisition of Legacy West (Dallas/Fort Worth MSA), an iconic mixed-use destination, for
$785 million ($408 million at KRG’s share). As part of the acquisition, the JV assumed a$304 million mortgage ($158 million at KRG’s share) at a3.8% coupon. The Company is the operating member of the JV, and under the terms of the arrangement, owns a52.0% interest. - Entered into a second JV with GIC by contributing three larger-format shopping centers in Texas and Florida. The three seed assets total approximately 921,000 square feet of owned GLA and include The Landing at Tradition (Port St. Lucie MSA), Denton Crossing (Dallas/Fort Worth MSA), and Parkway Towne Crossing (Dallas/Fort Worth MSA). The Company’s contribution to the JV generated gross proceeds of approximately
$112.1 million while maintaining a52.0% ownership interest. The Company is the operating member of the JV and will earn market-rate management fees. - As previously announced, sold Stoney Creek Commons (Indianapolis MSA), an 84,094 square foot center, for
$9.5 million . - Sold Fullerton Metrocenter (Los Angeles MSA), a 241,027 square foot center, for
$118.5 million . - Subsequent to quarter end, sold Humblewood Shopping Center (Houston MSA), an 85,682 square foot center, for
$18.3 million .
Second Quarter 2025 Balance Sheet Overview
- As of June 30, 2025, the Company’s net debt to Adjusted EBITDA was 5.1x.
- Issued
$300 million of senior unsecured notes due August 15, 2032 at a fixed interest rate of5.20% . The Company used the proceeds to repay borrowings on its revolving credit facility and its$150 million unsecured term loan that was scheduled to mature on July 17, 2026 with no prepayment penalties. The Company expects the remaining proceeds will be used to repay its$80 million senior unsecured notes that mature on September 10, 2025. - Subsequent to quarter end, the Company closed on pricing amendments with respect to the Company’s senior unsecured credit facilities that eliminate the SOFR credit spread adjustment applicable to such facilities. As a result, the interest rate is reduced by 10 basis points on each of the Company’s
$1.1 billion unsecured revolving credit facility,$250 million unsecured term loan maturing on October 24, 2028, and$300 million unsecured term loan maturing on July 29, 2029 (the “2029 Term Loan”). In addition, the pricing amendment also reduces the interest rate margin applicable to the 2029 Term Loan, which at the Company’s current credit rating level results in an additional 30-basis point interest rate reduction for such loan.
Dividend
On July 28, 2025, the Company’s Board of Trustees declared a third quarter 2025 dividend of
2025 Earnings Guidance
The Company expects to generate net income attributable to common shareholders of
- 2025 Same Property NOI range of
1.50% to2.50% . - Full-year credit disruption of
1.85% of total revenues at the midpoint, inclusive of a0.95% general bad debt reserve and a0.90% impact from anchor bankruptcies. - Interest expense, net of interest income, excluding unconsolidated joint ventures, of
$124.75 million at the midpoint.
The following table reconciles the Company’s 2025 net income guidance range to the Company’s 2025 NAREIT and Core FFO guidance ranges:
| Low | High | ||
| Net income | |||
| Realized gain on sales of operating properties, net | (0.46) | (0.46) | |
| Depreciation and amortization | 1.77 | 1.77 | |
| NAREIT FFO | $2.06 | $2.10 | |
| Non-cash items | (0.04) | (0.04) | |
| Core FFO | $2.02 | $2.06 |
Earnings Conference Call
Kite Realty Group will conduct a conference call to discuss its financial results on Thursday, July 31, 2025, at 11:00 a.m. Eastern Time. A live webcast of the conference call will be available on KRG’s website at www.kiterealty.com or at the following link: KRG Second Quarter 2025 Webcast. The dial-in registration link is: KRG Second Quarter 2025 Teleconference Registration. In addition, a webcast replay link will be available on KRG’s website.
About Kite Realty Group
Kite Realty Group (NYSE: KRG), a real estate investment trust (REIT), is a premier owner and operator of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets, makes the KRG portfolio an ideal platform for both retailers and consumers. Publicly listed since 2004, KRG has over 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of June 30, 2025, the Company owned interests in 181 U.S. open-air shopping centers and mixed-use assets, comprising approximately 29.8 million square feet of gross leasable space. For more information, please visit kiterealty.com.
Connect with KRG: LinkedIn | X | Instagram | Facebook
Safe Harbor
This release, together with other statements and information publicly disseminated by us, 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: economic, business, banking, real estate and other market conditions, particularly in connection with low or negative growth in the U.S. economy as well as economic uncertainty (including from an economic slowdown or recession, disruptions related to tariffs and other trade or sanction issues, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending); 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, the Company’s indebtedness; the level and volatility of interest rates; the financial stability of the Company’s tenants; the competitive environment in which the Company operates, including potential oversupplies of, or a reduction in demand for, rental space; acquisition, disposition, development and joint venture risks; property ownership and management risks, including the relative illiquidity of real estate investments, and expenses, vacancies or the inability to rent space on favorable terms or at all; the Company’s ability to maintain the Company’s status as a real estate investment trust for U.S. federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; the attractiveness of our properties to tenants, the actual and perceived impact of e-commerce on the value of shopping center assets, and changing demographics and customer traffic patterns; business continuity disruptions and a deterioration in our tenants’ ability to operate in affected areas or delays in the supply of products or services to us or our tenants from vendors that are needed to operate efficiently, causing costs to rise sharply and inventory to fall; risks related to our current geographical concentration of properties in the states of Texas, Florida, and North Carolina and the metropolitan statistical areas of New York, Atlanta, Seattle, Chicago, and Washington, D.C.; civil unrest, acts of violence, terrorism or war, acts of God, climate change, epidemics, pandemics, natural disasters and severe weather conditions, including such events that may result in underinsured or uninsured losses or other increased costs and expenses; changes in laws and government regulations, including governmental orders affecting the use of the Company’s properties or the ability of its tenants to operate, and the costs of complying with such changed laws and government regulations; possible changes in consumer behavior due to public health crises and the fear of future pandemics; our ability to satisfy environmental, social or governance standards set by various constituencies; insurance costs and coverage, especially in Florida and Texas coastal areas and North Carolina; risks associated with cyber attacks and the loss of confidential information and other business disruptions; risks associated with the use of artificial intelligence and related tools; other factors affecting the real estate industry generally; and other risks identified in reports the Company files with the Securities and Exchange Commission or in other documents that it publicly disseminates, including, in particular, the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in the Company’s quarterly reports on Form 10-Q. 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.
This Earnings Release also includes certain forward-looking non-GAAP information. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of our operating performance. Please see the following pages for the corresponding definitions and reconciliations of such non-GAAP financial measures.
| Kite Realty Group Consolidated Balance Sheets (dollars in thousands) (unaudited) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| Assets: | ||||||||
| Investment properties, at cost | $ | 7,423,024 | $ | 7,634,191 | ||||
| Less: accumulated depreciation | (1,661,279 | ) | (1,587,661 | ) | ||||
| Net investment properties | 5,761,745 | 6,046,530 | ||||||
| Cash and cash equivalents | 182,044 | 128,056 | ||||||
| Tenant and other receivables, including accrued straight-line rent of | 125,289 | 125,768 | ||||||
| Restricted cash and escrow deposits | 5,566 | 5,271 | ||||||
| Deferred costs, net | 208,683 | 238,213 | ||||||
| Short-term deposits | — | 350,000 | ||||||
| Prepaid and other assets | 96,278 | 104,627 | ||||||
| Investments in unconsolidated subsidiaries | 390,827 | 19,511 | ||||||
| Assets associated with investment properties held for sale | 87,908 | 73,791 | ||||||
| Total assets | $ | 6,858,340 | $ | 7,091,767 | ||||
| Liabilities and Equity: | ||||||||
| Liabilities: | ||||||||
| Mortgage and other indebtedness, net | $ | 3,022,496 | $ | 3,226,930 | ||||
| Accounts payable and accrued expenses | 180,564 | 202,651 | ||||||
| Deferred revenue and other liabilities | 227,807 | 246,100 | ||||||
| Liabilities associated with investment properties held for sale | 4,949 | 4,009 | ||||||
| Total liabilities | 3,435,816 | 3,679,690 | ||||||
| Commitments and contingencies | ||||||||
| Limited Partners’ interests in the Operating Partnership | 102,891 | 98,074 | ||||||
| Equity: | ||||||||
| Common shares, | 2,198 | 2,197 | ||||||
| Additional paid-in capital | 4,867,036 | 4,868,554 | ||||||
| Accumulated other comprehensive income | 28,397 | 36,612 | ||||||
| Accumulated deficit | (1,579,915 | ) | (1,595,253 | ) | ||||
| Total shareholders’ equity | 3,317,716 | 3,312,110 | ||||||
| Noncontrolling interests | 1,917 | 1,893 | ||||||
| Total equity | 3,319,633 | 3,314,003 | ||||||
| Total liabilities and equity | $ | 6,858,340 | $ | 7,091,767 | ||||
| Kite Realty Group Consolidated Statements of Operations (dollars in thousands, except per share amounts) (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue: | ||||||||||||||||
| Rental income | $ | 211,182 | $ | 205,836 | $ | 430,354 | $ | 411,649 | ||||||||
| Other property-related revenue | 1,360 | 3,146 | 3,525 | 4,457 | ||||||||||||
| Fee income | 853 | 3,452 | 1,278 | 3,767 | ||||||||||||
| Total revenue | 213,395 | 212,434 | 435,157 | 419,873 | ||||||||||||
| Expenses: | ||||||||||||||||
| Property operating | 28,881 | 28,564 | 58,707 | 56,645 | ||||||||||||
| Real estate taxes | 26,651 | 26,493 | 54,412 | 53,027 | ||||||||||||
| General, administrative and other | 13,390 | 12,966 | 25,648 | 25,750 | ||||||||||||
| Depreciation and amortization | 97,887 | 99,291 | 196,118 | 199,670 | ||||||||||||
| Impairment charges | — | 66,201 | — | 66,201 | ||||||||||||
| Total expenses | 166,809 | 233,515 | 334,885 | 401,293 | ||||||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (34,052 | ) | (30,981 | ) | (67,006 | ) | (61,345 | ) | ||||||||
| Income tax expense of taxable REIT subsidiaries | (199 | ) | (132 | ) | (209 | ) | (290 | ) | ||||||||
| Gain (loss) on sales of operating properties, net | 103,022 | (1,230 | ) | 103,113 | (1,466 | ) | ||||||||||
| Equity in loss of unconsolidated subsidiaries | (3,238 | ) | (174 | ) | (3,845 | ) | (594 | ) | ||||||||
| Gain on sale of unconsolidated property, net | — | — | — | 2,325 | ||||||||||||
| Other income, net | 480 | 4,295 | 4,538 | 7,923 | ||||||||||||
| Net income (loss) | 112,599 | (49,303 | ) | 136,863 | (34,867 | ) | ||||||||||
| Net (income) loss attributable to noncontrolling interests | (2,281 | ) | 665 | (2,815 | ) | 385 | ||||||||||
| Net income (loss) attributable to common shareholders | $ | 110,318 | $ | (48,638 | ) | $ | 134,048 | $ | (34,482 | ) | ||||||
| Net income (loss) per common share – basic and diluted | $ | 0.50 | $ | (0.22 | ) | $ | 0.61 | $ | (0.16 | ) | ||||||
| Weighted average common shares outstanding – basic | 219,835,322 | 219,622,059 | 219,775,829 | 219,561,586 | ||||||||||||
| Weighted average common shares outstanding – diluted | 219,949,868 | 219,622,059 | 219,888,939 | 219,561,586 | ||||||||||||
| Kite Realty Group NAREIT Funds From Operations (“FFO”)(1) (dollars in thousands, except per share amounts) (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net income (loss) | $ | 112,599 | $ | (49,303 | ) | $ | 136,863 | $ | (34,867 | ) | ||||||
| Less: net income attributable to noncontrolling interests in properties | (81 | ) | (74 | ) | (151 | ) | (141 | ) | ||||||||
| Less/add: (gain) loss on sales of operating properties, net | (103,022 | ) | 1,230 | (103,113 | ) | 1,466 | ||||||||||
| Less: gain on sale of unconsolidated property, net | — | — | — | (2,325 | ) | |||||||||||
| Add: impairment charges | — | 66,201 | — | 66,201 | ||||||||||||
| Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests | 104,469 | 99,433 | 203,146 | 199,993 | ||||||||||||
| NAREIT FFO of the Operating Partnership(1) | 113,965 | 117,487 | 236,745 | 230,327 | ||||||||||||
| Less: Limited Partners’ interests in FFO | (2,466 | ) | (1,946 | ) | (4,929 | ) | (3,768 | ) | ||||||||
| FFO attributable to common shareholders(1) | $ | 111,499 | $ | 115,541 | $ | 231,816 | $ | 226,559 | ||||||||
| FFO, as defined by NAREIT, per share of the Operating Partnership – basic | $ | 0.51 | $ | 0.53 | $ | 1.05 | $ | 1.03 | ||||||||
| FFO, as defined by NAREIT, per share of the Operating Partnership – diluted | $ | 0.51 | $ | 0.53 | $ | 1.05 | $ | 1.03 | ||||||||
| Weighted average common shares outstanding – basic | 219,835,322 | 219,622,059 | 219,775,829 | 219,561,586 | ||||||||||||
| Weighted average common shares outstanding – diluted | 219,949,868 | 220,013,860 | 219,888,939 | 219,957,009 | ||||||||||||
| Weighted average common shares and units outstanding – basic | 224,684,910 | 223,329,063 | 224,451,187 | 223,219,523 | ||||||||||||
| Weighted average common shares and units outstanding – diluted | 224,799,456 | 223,720,864 | 224,564,297 | 223,614,946 | ||||||||||||
| Reconciliation of NAREIT FFO to Core FFO(2) | ||||||||||||||||
| NAREIT FFO of the Operating Partnership(1) | $ | 113,965 | $ | 117,487 | $ | 236,745 | $ | 230,327 | ||||||||
| Add: | ||||||||||||||||
| Amortization of deferred financing costs | 1,751 | 987 | 3,395 | 1,916 | ||||||||||||
| Non-cash compensation expense and other | 3,048 | 2,906 | 5,564 | 5,628 | ||||||||||||
| Less: | ||||||||||||||||
| Straight-line rent – minimum rent and common area maintenance | 2,835 | 3,651 | 5,413 | 6,776 | ||||||||||||
| Market rent amortization income | 1,879 | 2,390 | 5,421 | 4,657 | ||||||||||||
| Amortization of debt discounts, premiums and hedge instruments | 890 | 3,734 | 3,646 | 7,490 | ||||||||||||
| Core FFO of the Operating Partnership | $ | 113,160 | $ | 111,605 | $ | 231,224 | $ | 218,948 | ||||||||
| Core FFO per share of the Operating Partnership – diluted | $ | 0.50 | $ | 0.50 | $ | 1.03 | $ | 0.98 | ||||||||
(1) “NAREIT FFO of the Operating Partnership” measures
(2) Includes the Company’s pro rata share from unconsolidated joint ventures.
NAREIT Funds From Operations (“FFO”) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of our operating performance. The Company calculates FFO, a non-GAAP financial measure, in accordance with the best practices described in the April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts (“NAREIT”), as restated in 2018. The NAREIT white paper defines FFO as net income (calculated in accordance with GAAP), excluding (i) depreciation and amortization related to real estate, (ii) gains and losses from the sale of certain real estate assets, (iii) gains and losses from change in control, and (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.
Considering the nature of our business as a real estate owner and operator, the Company believes that FFO is helpful to investors in measuring our operational performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance, such as gains or losses from sales of depreciated property and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. FFO (a) should not be considered as an alternative to net income (calculated in accordance with GAAP) for the purpose of measuring our financial performance, (b) is not an alternative to cash flows from operating activities (calculated in accordance with GAAP) as a measure of our liquidity, and (c) is not indicative of funds available to satisfy our cash needs, including our ability to make distributions. The Company’s computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.
From time to time, the Company may report or provide guidance with respect to “FFO, as adjusted,” which removes the impact of certain non-recurring and non-operating transactions or other items the Company does not consider to be representative of its core operating results including, without limitation, (i) gains or losses associated with the early extinguishment of debt, (ii) gains or losses associated with litigation involving the Company that is not in the normal course of business, (iii) merger and acquisition costs, (iv) the impact on earnings from employee severance, (v) the excess of redemption value over carrying value of preferred stock redemption, and (vi) the impact of prior period bad debt or the collection of accounts receivable previously written off (“prior period collection impact”), which are not otherwise adjusted in the Company’s calculation of FFO.
Core Funds From Operations (“Core FFO”) is a non-GAAP financial measure of operating performance that modifies FFO for certain non-cash transactions that result in recording income or expense and impact the Company’s period-over-period performance, including (i) amortization of deferred financing costs, (ii) non-cash compensation expense and other, (iii) straight-line rent related to minimum rent and common area maintenance, (iv) market rent amortization income, and (v) amortization of debt discounts, premiums and hedge instruments, and include adjustments related to our pro rata share from unconsolidated joint ventures for these categories as applicable. The Company believes that Core FFO is useful to investors in evaluating the core cash flow-generating operations of the Company by adjusting for items that we do not consider to be part of our core business operations, allowing for comparison of core operating performance of the Company between periods. Core FFO should not be considered as an alternative to net income as an indicator of the Company’s performance or as an alternative to cash flow as a measure of liquidity or the Company’s ability to make distributions. The Company’s computation of Core FFO may differ from the methodology for calculating Core FFO used by other REITs, and therefore, may not be comparable to such other REITs.
| Kite Realty Group Same Property Net Operating Income (“NOI”) (dollars in thousands) (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||
| Number of properties in Same Property Pool for the period(1) | 175 | 175 | 175 | 175 | ||||||||||||
| Leased percentage at period end | ||||||||||||||||
| Economic occupancy percentage at period end | ||||||||||||||||
| Economic occupancy percentage(2) |
| Minimum rent | $ | 150,706 | $ | 147,190 | $ | 301,765 | $ | 293,361 | |||||||||||||
| Tenant recoveries | 41,704 | 40,364 | 84,876 | 81,361 | |||||||||||||||||
| Bad debt reserve | (1,521 | ) | (1,562 | ) | (3,469 | ) | (2,072 | ) | |||||||||||||
| Other income, net | 2,488 | 2,169 | 4,685 | 4,766 | |||||||||||||||||
| Total revenue | 193,377 | 188,161 | 387,857 | 377,416 | |||||||||||||||||
| Property operating | (24,195 | ) | (24,001 | ) | (49,626 | ) | (49,028 | ) | |||||||||||||
| Real estate taxes | (25,078 | ) | (24,648 | ) | (50,328 | ) | (49,350 | ) | |||||||||||||
| Total expenses | (49,273 | ) | (48,649 | ) | (99,954 | ) | (98,378 | ) | |||||||||||||
| Same Property NOI(3) | $ | 144,104 | $ | 139,512 | 3.3 | % | $ | 287,903 | $ | 279,038 | 3.2 | % | |||||||||
| Reconciliation of Same Property NOI to most directly comparable GAAP measure: | ||||||||||||||||||||||
| Net operating income – same properties | $ | 144,104 | $ | 139,512 | $ | 287,903 | $ | 279,038 | ||||||||||||||
| Net operating income – non-same activity(4) | 12,906 | 14,413 | 32,857 | 27,396 | ||||||||||||||||||
| Total property NOI | 157,010 | 153,925 | 2.0 | % | 320,760 | 306,434 | 4.7 | % | ||||||||||||||
| Other (expense) income, net | (2,104 | ) | 7,441 | 1,762 | 10,806 | |||||||||||||||||
| General, administrative and other | (13,390 | ) | (12,966 | ) | (25,648 | ) | (25,750 | ) | ||||||||||||||
| Impairment charges | — | (66,201 | ) | — | (66,201 | ) | ||||||||||||||||
| Depreciation and amortization | (97,887 | ) | (99,291 | ) | (196,118 | ) | (199,670 | ) | ||||||||||||||
| Interest expense | (34,052 | ) | (30,981 | ) | (67,006 | ) | (61,345 | ) | ||||||||||||||
| Gain (loss) on sales of operating properties, net | 103,022 | (1,230 | ) | 103,113 | (1,466 | ) | ||||||||||||||||
| Gain on sale of unconsolidated property, net | — | — | — | 2,325 | ||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (2,281 | ) | 665 | (2,815 | ) | 385 | ||||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 110,318 | $ | (48,638 | ) | $ | 134,048 | $ | (34,482 | ) | ||||||||||||
(1) Same Property NOI excludes the following: (i) properties acquired or placed in service during 2024 and 2025; (ii) The Corner – IN, which was reclassified from active development into our operating portfolio in March 2025; (iii) our active development project at One Loudoun Expansion; (iv) Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively; (v) properties sold or classified as held for sale during 2024 and 2025; and (vi) standalone office properties, including the Carillon medical office building, which was reclassified from active redevelopment into our office portfolio in December 2024.
(2) Excludes leases that are signed but for which tenants have not yet commenced the payment of cash rent. Calculated as a weighted average based on the timing of cash rent commencement and expiration during the period.
(3) Same Property NOI for all periods presented includes
(4) Includes non-cash activity across the portfolio as well as NOI from properties not included in the Same Property Pool, including properties sold during both periods.
The Company uses property NOI, a non-GAAP financial measure, to evaluate the performance of our properties. The Company defines NOI as income from our real estate, including lease termination fees received from tenants, less our property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions and certain corporate-level expenses, including merger and acquisition costs. The Company believes that NOI is helpful to investors as a measure of our operating performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance, such as depreciation and amortization, interest expense, and impairment, if any.
The Company also uses same property NOI (“Same Property NOI”), a non-GAAP financial measure, to evaluate the performance of our properties. Same Property NOI is net income excluding properties that have not been owned for the full periods presented. Same Property NOI also excludes (i) net gains from outlot sales, (ii) straight-line rent revenue, (iii) lease termination income in excess of lost rent, (iv) amortization of lease intangibles, and (v) significant prior period expense recoveries and adjustments, if any. When the Company receives payments in excess of any accounts receivable for terminating a lease, Same Property NOI will include such excess payments as monthly rent until the earlier of the expiration of 12 months or the start date of a replacement tenant. The Company believes that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full periods presented. The Company believes such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular periods presented and thus provides a more consistent metric for the comparison of our properties. Same Property NOI includes the results of properties that have been owned for the entire current and prior year reporting periods. Same Property NOI for all periods presented includes
NOI and Same Property NOI should not, however, be considered as an alternative to net income (calculated in accordance with GAAP) as an indicator of our financial performance. The Company’s computation of NOI and Same Property NOI may differ from the methodology used by other REITs and, therefore, may not be comparable to such other REITs.
When evaluating the properties that are included in the Same Property Pool, we have established specific criteria for determining the inclusion of properties acquired or those recently under development. An acquired property is included in the Same Property Pool when there is a full quarter of operations in both years subsequent to the acquisition date. Development and redevelopment properties are included in the Same Property Pool four full quarters after the properties have been transferred to the operating portfolio. A redevelopment property is first excluded from the Same Property Pool when the execution of a redevelopment plan is likely, and we (a) begin recapturing space from tenants or (b) the contemplated plan significantly impacts the operations of the property. For the three and six months ended June 30, 2025, the Same Property Pool excludes the following: (i) properties acquired or placed in service during 2024 and 2025; (ii) The Corner – IN, which was reclassified from active development into our operating portfolio in March 2025; (iii) our active development project at One Loudoun Expansion; (iv) Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively; (v) properties sold or classified as held for sale during 2024 and 2025; and (vi) standalone office properties, including the Carillon medical office building, which was reclassified from active redevelopment into our office portfolio in December 2024.
| Kite Realty Group Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) (dollars in thousands) (unaudited) | |||
| Three Months Ended June 30, 2025 | |||
| Net income | $ | 112,599 | |
| Depreciation and amortization | 97,887 | ||
| Interest expense | 34,052 | ||
| Income tax expense of taxable REIT subsidiaries | 199 | ||
| EBITDA | 244,737 | ||
| Unconsolidated EBITDA, as adjusted | 5,689 | ||
| Gain on sales of operating properties, net | (103,022 | ) | |
| Other income and expense, net | 2,758 | ||
| Noncontrolling interests | (210 | ) | |
| Pro forma adjustments(1) | (2,280 | ) | |
| Adjusted EBITDA | $ | 147,672 | |
| Annualized Adjusted EBITDA(2) | $ | 590,690 | |
| Company share of Net Debt: | |||
| Mortgage and other indebtedness, net | $ | 3,022,496 | |
| Add: Company share of unconsolidated joint venture debt | 190,841 | ||
| Add: debt discounts, premiums and issuance costs, net | 3,082 | ||
| Less: Partner share of consolidated joint venture debt(3) | (9,777 | ) | |
| Company’s consolidated debt and share of unconsolidated debt | 3,206,642 | ||
| Less: cash, cash equivalents and restricted cash | (201,796 | ) | |
| Company share of Net Debt | $ | 3,004,846 | |
| Net Debt to Adjusted EBITDA | 5.1x | ||
(1) Pro forma adjustments relate to current quarter GAAP operating income for the sale of Fullerton Metrocenter and the sale of a
(2) Represents Adjusted EBITDA for the three months ended June 30, 2025 (as shown in the table above) multiplied by four.
(3) Partner share of consolidated joint venture debt is calculated based upon the partner’s pro rata ownership of the joint venture, multiplied by the related secured debt balance.
The Company defines EBITDA, a non-GAAP financial measure, as net income before interest expense, income tax expense of the taxable REIT subsidiaries, and depreciation and amortization. For informational purposes, the Company also provides Adjusted EBITDA, which it defines as EBITDA less (i) EBITDA from unconsolidated entities, as adjusted, (ii) gains on sales of operating properties or impairment charges, (iii) merger and acquisition costs, (iv) other income and expense, (v) noncontrolling interest Adjusted EBITDA, and (vi) other non-recurring activity or items impacting comparability from period to period. Annualized Adjusted EBITDA is Adjusted EBITDA for the most recent quarter multiplied by four. Net Debt to Adjusted EBITDA is the Company’s share of net debt divided by Annualized Adjusted EBITDA. EBITDA, Adjusted EBITDA, Annualized Adjusted EBITDA and Net Debt to Adjusted EBITDA, as calculated by the Company, are not comparable to EBITDA and EBITDA-related measures reported by other REITs that do not define EBITDA and EBITDA-related measures exactly as we do. EBITDA, Adjusted EBITDA and Annualized Adjusted EBITDA do not represent cash generated from operating activities in accordance with GAAP and should not be considered alternatives to net income as an indicator of performance or as alternatives to cash flows from operating activities as an indicator of liquidity.
Considering the nature of our business as a real estate owner and operator, the Company believes that EBITDA, Adjusted EBITDA and the ratio of Net Debt to Adjusted EBITDA are helpful to investors in measuring our operational performance because they exclude various items included in net income that do not relate to or are not indicative of our operating performance, such as gains or losses from sales of depreciated property and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. For informational purposes, the Company also provides Annualized Adjusted EBITDA, adjusted as described above. The Company believes this supplemental information provides a meaningful measure of its operating performance. The Company believes presenting EBITDA and the related measures in this manner allows investors and other interested parties to form a more meaningful assessment of the Company’s operating results.
Contact Information: Kite Realty Group
Tyler Henshaw
SVP, Capital Markets & Investor Relations
317.713.7780
thenshaw@kiterealty.com
FAQ
What were KRG's Q2 2025 earnings per share?
How much space did Kite Realty Group lease in Q2 2025?
What is KRG's updated 2025 FFO guidance?
What major transactions did KRG complete in Q2 2025?
What is KRG's current dividend payment?
