Kite Realty Group Reports Third Quarter 2026 Operating Results

The higher FFO guidance floor comes alongside lower quarterly revenue and a larger signed-not-open income pipeline.

Rhea-AI Summary

Kite Realty Group (NYSE: KRG) reported a narrower third-quarter net loss and raised the lower end of its 2026 earnings guidance. The common-shareholder loss was $13.3 million, versus $16.2 million a year earlier; diluted loss per share remained $0.07. Revenue fell to $190.275 million from $204.961 million. Core funds from operations (FFO), a supplemental property earnings measure, were $0.52 per diluted share, unchanged year over year.

Same Property net operating income (NOI) grew 3.6%. Approximately 1.2 million square feet of leasing carried 14.6% comparable blended cash spreads, while leased occupancy reached 95.3%. Signed-not-open NOI totaled approximately $38.8 million. The company raised its 2026 Core and NAREIT FFO guidance floor to $2.08 from $2.06, retaining the $2.12 ceiling. Quarterly share repurchases totaled $63.4 million, and Fitch upgraded its credit rating to BBB+ from BBB.

31 points · 1 major

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0 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.2026 Core and NAREIT FFO guidance raised to $2.08–$2.12 per diluted share from $2.06–$2.12.
• Moderate pointSame Property NOI increased 3.6% in the third quarter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 Same Property NOI growth outlook narrowed to 3.40%–3.90% from 3.00%–4.00%, raising the floor but lowering the ceiling.
• Moderate pointNine-month common-shareholder income rose to $159.4 million, or $0.78 diluted, from $117.8 million, or $0.54.
• Moderate pointComparable blended cash leasing spreads reached 14.6% across 129 leases.
• Moderate pointAnnualized retail base rent reached $23.52 per square foot, up 6.4% year over year.
• Moderate pointRetail leased percentage reached 95.3%, up 140 basis points year over year.
• Moderate pointSigned-not-open NOI increased to approximately $38.8 million, representing a 360-basis-point leased-to-occupied spread.
• Moderate pointQuarterly repurchases retired approximately 2.4 million common shares for $63.4 million, averaging $26.61 per share. 1.3% of market cap
• Moderate pointFitch upgraded the corporate credit rating to BBB+ from BBB, with a stable outlook.
• Moderate pointPelham Manor Shopping Plaza land fee interest acquired for a $52.0 million gross purchase price. 1% of market cap
• Moderate pointOperating partnership raised $345 million through exchangeable senior notes, including the full $45 million overallotment option. 6.9% of market cap
• Moderate pointOperating partnership redeemed $300 million of 4.00% notes using most exchangeable-note proceeds and asset-disposition cash. 6% of market cap
• Moderate pointMaturing $100 million of 4.08% senior unsecured notes were repaid September 30, 2026. 2% of market cap
• Moderate pointMortgage and other indebtedness, net, fell to $2,807.320 million from $3,025.478 million at December 31, 2025.

16 minor points

• Minor pointQuarterly common-shareholder loss narrowed to $13.3 million from $16.2 million; diluted loss per share remained $0.07.
• Minor pointLeasing totaled 160 new and renewal leases covering approximately 1.2 million square feet.
• Minor pointComparable new-lease cash spreads reached 33.7% across 30 leases.
• Minor pointComparable non-option renewal cash spreads reached 18.3% across 43 leases.
• Minor pointComparable option renewal cash spreads reached 7.6% across 56 leases.
• Minor pointComparable new and non-option renewal leases delivered blended cash spreads of 26.2%.
• Minor pointAnchor leased percentage reached 96.9%, up 190 basis points year over year.
• Minor pointSmall-shop leased percentage reached 92.7%, up 90 basis points year over year.
• Minor point2026 declared dividends totaled $1.16 per common share, up 5.5% year over year.
• Minor pointTysons Corner sale generated $25.9 million during the quarter.
• Minor pointCarillon medical office building sold after quarter-end for a $33.2 million gross sales price.
• Minor pointQuarterly property operating expenses fell to $27.653 million from $28.536 million year over year.
• Minor pointReal estate taxes fell to $23.666 million quarterly and $72.968 million year to date, from $25.678 million and $80.090 million.
• Minor pointDepreciation and amortization fell to $79.655 million quarterly and $243.750 million year to date, from $89.370 million and $285.488 million.
• Minor pointImpairment charges fell to $30.694 million quarterly and $37.562 million year to date, from $39.305 million in both prior periods.
• Minor pointInterest expense fell to $31.569 million quarterly and $95.008 million year to date, from $33.162 million and $100.168 million.

Negative

• Moderate pointQuarterly revenue fell to $190.275 million from $204.961 million a year earlier.
• Moderate pointQuarterly Operating Partnership Core FFO fell to $107.024 million from $116.442 million; diluted per-share FFO stayed $0.52.
• Moderate pointQuarterly Operating Partnership NAREIT FFO fell to $107.892 million from $118.821 million; diluted per-share FFO stayed $0.53.
• Minor pointNine-month revenue fell to $587.230 million from $639.428 million a year earlier.
• Minor pointNine-month Operating Partnership Core FFO fell to $324.521 million from $347.983 million; diluted per-share FFO rose to $1.56 from $1.55.

5 minor points

• Minor pointNine-month Operating Partnership NAREIT FFO fell to $326.364 million from $355.566 million; diluted per-share FFO fell to $1.57 from $1.58.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 net interest expense midpoint increased to $116.4 million from $114.7 million, excluding unconsolidated joint ventures.
• Minor pointExchangeable notes carry 3.25% interest through 2032 and an initial exchange price of approximately $35.40 per share.
• Minor pointGeneral, administrative and other expenses rose to $15.041 million quarterly and $43.534 million year to date, from $14.183 million and $39.831 million.
• Minor pointCash and cash equivalents fell to $32.542 million from $36.761 million at December 31, 2025.

News Explained

Note exchange could add common shares, lowering existing holders’ percentage ownership if no offsetting changes occur.

KRG reports that its operating partnership issued $345 million of 3.25% exchangeable senior notes due 2032 on July 2, 2026; most proceeds, together with cash from asset sales, funded redemption of $300 million of notes due October 1, 2026, and the company repaid $100 million of notes maturing September 30, 2026.

Those repayments are reported as completed, leaving the new exchangeable notes due in 2032.

A September 18 automatic shelf registration covers up to 11,937,690 common shares that may be issued upon exchange and resold by noteholders; KRG says it receives no proceeds from such share issuance or resales.

If issued, additional shares increase the total share count and reduce existing holders’ percentage ownership, absent offsetting changes.

Key Figures

Quarterly net loss: $13.3 million; $0.07 per diluted share Nine-month net income: $159.4 million; $0.78 per diluted share Core FFO: $107.0 million; $0.52 per diluted share +5 more

Quarterly net loss

$13.3 million; $0.07 per diluted share

Third quarter 2026, compared with a $16.2 million loss and $0.07 per diluted share in 2025

Nine-month net income

$159.4 million; $0.78 per diluted share

Nine months ended September 30, 2026, compared with $117.8 million and $0.54 per diluted share in 2025

Core FFO

$107.0 million; $0.52 per diluted share

Operating Partnership, third quarter 2026

NAREIT FFO

$107.9 million; $0.53 per diluted share

Operating Partnership, third quarter 2026

Same Property NOI growth

3.6%

Third quarter 2026

2026 Core and NAREIT FFO guidance

$2.08–$2.12 per diluted share

Raised from $2.06–$2.12

2026 Same Property NOI growth guidance

3.40%–3.90%

Previously 3.00%–4.00%

Corporate credit rating

BBB+ from BBB

Fitch Ratings upgrade

Previous Earnings Reports

1 past event · Latest: Jul 30

Same Type 1 event

1. Jul 30

   Q2 earnings report

   24h Move

   +0.3%

   Maintained 2026 FFO guidance at $2.06–$2.12; Same Property NOI grew 3.7%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ffo, noi, exchangeable senior notes, capped call transactions, +1 more

5 terms

ffo financial

"Generated Core FFO of the Operating Partnership of $107.0 million"

Funds from operations (FFO) is a performance metric used mainly for real estate companies that measures the cash generated by their core rental and property-management activities, while removing accounting items such as building depreciation and one-time gains or losses from property sales. Investors rely on FFO to assess a real estate firm's ability to pay and sustain dividends and fund growth—similar to checking how much actual rent a landlord collects each month rather than paper profits.

noi financial

"We delivered 3.6% Same Property NOI growth"

Net operating income (NOI) is the total profit a business makes from its core operations, after subtracting expenses directly related to running the business but before accounting for taxes, interest, or investments. It shows how well the company’s main activities generate earnings and helps investors assess its financial health and profitability without the influence of external factors. Think of it as the money a store earns from sales minus the costs to keep it open.

exchangeable senior notes financial

"issued $345 million of 3.25% exchangeable senior notes due 2032"

Exchangeable senior notes are loans a company issues that promise regular interest payments and have priority over other debts, but can be swapped by the holder for shares of a different company. Think of it as lending money with an option to trade the loan for someone else’s stock; investors weigh the steady income and higher repayment priority against the chance of receiving shares that dilute ownership or fluctuate in value. These features affect a company’s credit risk, potential dilution, and appeal to different investors.

capped call transactions financial

"entered into capped call transactions with an initial cap of $41.91 per share"

Capped call transactions are agreements where investors buy options that give them the chance to benefit if a stock's price goes up, but with a limit on how much they can gain. This helps protect them from paying too much if the stock's price rises a lot, similar to having a maximum limit on a reward. They matter because they help investors manage risk while still allowing some upside potential.

reit financial

"is a real estate investment trust (REIT)"

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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INDIANAPOLIS, Oct. 30, 2026 (GLOBE NEWSWIRE) -- Kite Realty Group (NYSE: KRG), a premier owner and operator of high-quality, open-air grocery-anchored shopping centers and vibrant mixed-use assets, reported today its operating results for the third quarter ended September 30, 2026. For the quarters ended September 30, 2026 and 2025, net loss attributable to common shareholders was $13.3 million, or $0.07 per diluted share, compared to $16.2 million, or $0.07 per diluted share, respectively. For the nine months ended September 30, 2026 and 2025, net income attributable to common shareholders was $159.4 million, or $0.78 per diluted share, compared to $117.8 million, or $0.54 per diluted share, respectively.

   Company raises 2026 FFO and Same Property NOI guidance ranges
   Executed over 1.2 million square feet of leasing volume
   Increased signed-not-open NOI pipeline to approximately $38.8 million
Received a credit rating upgrade to BBB+ from Fitch Ratings

“Third quarter results reflect exceptional tenant demand, the quality of our portfolio, and disciplined capital allocation,” said John A. Kite, Chairman and Chief Executive Officer. “We delivered 3.6% Same Property NOI growth and executed over 1.2 million square feet of leasing, including comparable blended lease spreads of 14.6%. This strong leasing volume increased our signed-not-open NOI pipeline to nearly $39 million and boosted our leased-to-occupied spread to an all-time high of 360 basis points. We continued to advance our capital allocation initiatives during the quarter while earning a BBB+ credit rating upgrade from Fitch, further validating the strength of our portfolio and balance sheet.”

Third Quarter 2026 Financial and Operational Results

• Generated Core FFO of the Operating Partnership of $107.0 million, or $0.52 per diluted share.
• Generated NAREIT FFO of the Operating Partnership of $107.9 million, or $0.53 per diluted share.
• Same Property NOI increased by 3.6%.
• Executed 160 new and renewal leases representing approximately 1.2 million square feet.
  • Blended cash leasing spreads of 14.6% on 129 comparable leases, including 33.7% on 30 comparable new leases, 18.3% on 43 comparable non-option renewals, and 7.6% on 56 comparable option renewals.
  • Blended cash leasing spreads of 26.2% for comparable new and non-option renewal leases.
• Operating retail portfolio annualized base rent (ABR) per square foot of $23.52 at September 30, 2026, a 6.4% increase year-over-year.
• Retail portfolio leased percentage of 95.3% at September 30, 2026, a 140-basis point increase year-over-year.
  • Anchor leased percentage of 96.9% at September 30, 2026, a 190-basis point increase year-over-year.
  • Small shop leased percentage of 92.7% at September 30, 2026, a 90-basis point increase year-over-year.
• Portfolio leased-to-occupied spread at period end of 360 basis points, which represents approximately $38.8 million of signed-not-open NOI.
  

Third Quarter 2026 Capital Allocation Activity

• As previously announced, sold one non-core asset – Tysons Corner in Vienna, VA – for $25.9 million.
  • Subsequent to quarter end, sold one non-core asset – Carillon medical office building in Largo, MD – for a gross sales price of $33.2 million.
• Acquired the fee interest in the land at Pelham Manor Shopping Plaza, an existing retail property in the New York metropolitan statistical area, for a gross purchase price of $52.0 million.
• Repurchased approximately 2.4 million common shares, at an average price of $26.61 per share, for $63.4 million.
  • In 2025 and to date in 2026, repurchased a total of approximately 22.0 million common shares, at an average price of approximately $24.46 per share, for $539.1 million.
    

Third Quarter 2026 Balance Sheet Overview

• As of September 30, 2026, the Company’s net debt to Adjusted EBITDA was 5.2x.
• As previously announced, on July 2, 2026, the Company’s operating partnership issued $345 million of 3.25% exchangeable senior notes due 2032, which included the full exercise of the initial purchasers’ $45 million overallotment option.
  • In connection with the issuance of the exchangeable notes, the Company entered into capped call transactions with an initial cap of $41.91 per share, compared with the exchangeable notes’ initial exchange price of approximately $35.40 per share. The Company used the majority of the proceeds, together with cash from its recent asset dispositions, to redeem the operating partnership’s $300 million principal balance of the 4.00% senior unsecured notes that were scheduled to mature on October 1, 2026.
• Repaid the $100 million principal balance of the 4.08% senior unsecured notes that matured on September 30, 2026.
• Fitch Ratings upgraded the Company’s corporate credit rating to BBB+ from BBB with a stable rating outlook.
  

Dividend

• On October 29, 2026, the Company’s Board of Trustees declared a fourth quarter 2026 dividend of $0.29 per common share. Total dividends declared for 2026 of $1.16 per common share represents a 5.5% increase year-over-year. The fourth quarter dividend will be paid on or about January 15, 2027, to shareholders of record as of January 9, 2027.
  

2026 Earnings Guidance
The Company expects to generate net income of $0.88 to $0.92 per diluted share in 2026. The Company is raising its 2026 Core FFO and NAREIT FFO guidance ranges to $2.08 to $2.12 per diluted share from $2.06 to $2.12 per diluted share, based, in part, on the following full year 2026 assumptions:

• 2026 Same Property NOI growth range of 3.40% to 3.90% (previously 3.00% to 4.00%).
• Bad debt reserve of 0.90% of total revenues at the midpoint.
• Interest expense, net of interest income, excluding unconsolidated joint ventures, of $116.4 million at the midpoint (previously $114.7 million).
  

The following table reconciles the Company’s 2026 net income guidance range to the Company’s 2026 NAREIT and Core FFO guidance ranges:

		Low			High
Net income		$0.88			$0.92
Gain on sales of operating properties, net			(0.44)			(0.44)
Gain on deconsolidation of joint venture			(0.29)			(0.29)
Impairment charges			0.18			0.18
Depreciation and amortization			1.75			1.75
NAREIT FFO		$2.08			$2.12
Non-cash items			0.00			0.00
Core FFO		$2.08			$2.12

Earnings Conference Call

Kite Realty Group will conduct a conference call to discuss its financial results on Friday, October 30, 2026, at 11:00 a.m. Eastern Time. A live webcast of the conference call will be available on KRG’s website at kiterealty.com or at the following link: KRG Third Quarter 2026 Webcast. The dial-in registration link is: KRG Third Quarter 2026 Teleconference Registration. In addition, a webcast replay link will be available on KRG’s website.

About Kite Realty Group

Kite Realty Group (NYSE: KRG) is a real estate investment trust (REIT) that owns and operates a high-quality portfolio of open-air shopping centers and mixed-use destinations. The Company’s portfolio is concentrated in high-growth Sun Belt and select strategic gateway markets. Publicly listed since 2004, KRG brings more than six decades of experience in developing, operating, and investing in real estate, using a disciplined, hands-on approach to enhance portfolio quality and maximize long-term value for all stakeholders. As of September 30, 2026, the Company owned interests in 164 U.S. open-air shopping centers and mixed-use assets, comprising approximately 26.3 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, federal government shutdown, disruptions related to tariffs and other trade or sanction issues, geopolitical instability, 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, including the ability to complete them on the terms and timing anticipated; 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; 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 cyberattacks 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, 2025, 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)
	September 30, 2026				December 31, 2025
Assets:
Investment properties, at cost	$	6,869,869			$	7,003,479
Less: accumulated depreciation		(1,759,251	)			(1,656,191	)
Net investment properties		5,110,618				5,347,288
Cash and cash equivalents		32,542				36,761
Tenant and other receivables, including accrued straight-line rent of $74,817 and $70,940, respectively		131,237				127,865
Restricted cash and escrow deposits		124,527				441,605
Deferred costs, net		163,121				181,553
Prepaid and other assets		64,970				93,913
Investments in unconsolidated joint ventures		401,162				364,407
Assets associated with investment properties held for sale		—				71,105
Total assets	$	6,028,177			$	6,664,497
Liabilities and Equity:
Liabilities:
Mortgage and other indebtedness, net	$	2,807,320			$	3,025,478
Accounts payable and accrued expenses		178,079				221,118
Deferred revenue and other liabilities		170,079				221,813
Liabilities associated with investment properties held for sale		—				4,314
Total liabilities		3,155,478				3,472,723
Commitments and contingencies
Limited Partners’ interests in the Operating Partnership		129,456				116,245
Equity:
Common shares, $0.01 par value, 490,000,000 shares authorized, 197,966,711 and 208,979,900 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively		1,979				2,090
Additional paid-in capital		4,300,836				4,612,280
Accumulated other comprehensive income		18,576				23,079
Accumulated deficit		(1,578,846	)			(1,563,840	)
Total shareholders’ equity		2,742,545				3,073,609
Noncontrolling interests		698				1,920
Total equity		2,743,243				3,075,529
Total liabilities and equity	$	6,028,177			$	6,664,497

Kite Realty Group Consolidated Statements of Operations (dollars in thousands, except per share amounts) (unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenue:
Rental income	$	186,511			$	202,193			$	577,867			$	632,547
Other property-related revenue		1,248				1,477				4,173				4,312
Fee income		2,516				1,291				5,190				2,569
Total revenue		190,275				204,961				587,230				639,428
Expenses:
Property operating		27,653				28,536				87,264				87,243
Real estate taxes		23,666				25,678				72,968				80,090
General, administrative and other		15,041				14,183				43,534				39,831
Depreciation and amortization		79,655				89,370				243,750				285,488
Impairment charges		30,694				39,305				37,562				39,305
Total expenses		176,709				197,072				485,078				531,957
Other (expense) income:
Interest expense		(31,569	)			(33,162	)			(95,008	)			(100,168	)
Income tax expense of taxable REIT subsidiaries		(251	)			(106	)			(1,072	)			(315	)
Gain on sales of operating properties, net		2,341				5,742				90,068				108,855
Net gains from outlot sales		2,259				6,096				4,662				6,096
Gain on deconsolidation of joint venture		—				—				60,625				—
Equity in loss of unconsolidated joint ventures		(3,775	)			(4,619	)			(7,335	)			(8,464	)
Other income, net		3,805				1,750				9,546				6,978
Net (loss) income		(13,624	)			(16,410	)			163,638				120,453
Net loss (income) attributable to noncontrolling interests		322				203				(4,242	)			(2,612	)
Net (loss) income attributable to common shareholders	$	(13,302	)		$	(16,207	)		$	159,396			$	117,841
Net (loss) income per common share – basic	$	(0.07	)		$	(0.07	)		$	0.79			$	0.54
Net (loss) income per common share – diluted	$	(0.07	)		$	(0.07	)		$	0.78			$	0.54
Weighted average common shares outstanding – basic		199,097,852				219,408,533				202,314,395				219,652,052
Weighted average common shares outstanding – diluted		199,097,852				219,408,533				203,142,324				219,768,504

Kite Realty Group NAREIT Funds From Operations (“FFO”)(1) (dollars in thousands, except per share amounts) (unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net (loss) income	$	(13,624	)		$	(16,410	)		$	163,638			$	120,453
Less: net income attributable to noncontrolling interests in properties		—				(82	)			(126	)			(233	)
Less: gain on sales of operating properties, net		(2,341	)			(5,742	)			(90,068	)			(108,855	)
Less: gain on deconsolidation of joint venture		—				—				(60,625	)			—
Add: impairment charges		30,694				39,305				37,562				39,305
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests		93,163				101,750				275,983				304,896
NAREIT FFO of the Operating Partnership(1)		107,892				118,821				326,364				355,566
Less: Limited Partners’ interests in FFO		(2,800	)			(2,569	)			(8,212	)			(7,498	)
FFO attributable to common shareholders(1)	$	105,092			$	116,252			$	318,152			$	348,068
FFO, as defined by NAREIT, per share of the Operating Partnership – basic	$	0.53			$	0.53			$	1.57			$	1.58
FFO, as defined by NAREIT, per share of the Operating Partnership – diluted	$	0.53			$	0.53			$	1.57			$	1.58
Weighted average common shares outstanding – basic		199,097,852				219,408,533				202,314,395				219,652,052
Weighted average common shares outstanding – diluted		199,199,751				219,531,606				202,410,018				219,768,504
Weighted average common shares and units outstanding – basic		204,405,613				224,258,121				207,539,183				224,386,126
Weighted average common shares and units outstanding – diluted		204,507,512				224,381,194				207,634,806				224,502,578
Reconciliation of NAREIT FFO to Core FFO(2)
NAREIT FFO of the Operating Partnership(1)	$	107,892			$	118,821			$	326,364			$	355,566
Add:
Amortization of deferred financing costs		2,220				1,856				5,877				5,251
Non-cash compensation expense and other		3,679				3,084				10,568				8,965
Less:
Straight-line rent – minimum rent and common area maintenance		2,850				3,789				7,970				9,202
Market rent amortization income		3,091				2,500				7,433				7,921
Amortization of debt discounts, premiums and hedge instruments		826				1,030				2,885				4,676
Core FFO of the Operating Partnership	$	107,024			$	116,442			$	324,521			$	347,983
Core FFO per share of the Operating Partnership – diluted	$	0.52			$	0.52			$	1.56			$	1.55

(1) “NAREIT FFO of the Operating Partnership” measures 100% of the operating performance of the Operating Partnership’s real estate properties. “FFO attributable to common shareholders” reflects a reduction for the redeemable noncontrolling weighted average diluted interest in the Operating Partnership.

(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 certain real estate assets that are excluded from FFO under the NAREIT definition 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 significant and non-recurring employee severance costs and recruiting expenses, including sign-on bonuses and search fees, (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 includes 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 September 30,											Nine Months Ended September 30,
		2026				2025			Change				2026				2025			Change
Number of properties in Same Property Pool for the period(1)		157				157							157				157
Leased percentage at period end		95.2	%			94.4	%						95.2	%			94.4	%
Economic occupancy percentage at period end		91.5	%			91.7	%						91.5	%			91.7	%
Economic occupancy percentage(2)		91.3	%			91.1	%						91.1	%			91.4	%
Minimum rent	$	139,166			$	135,581						$	415,600			$	404,014
Tenant recoveries		40,226				37,994							122,725				115,216
Bad debt reserve		(1,628	)			(1,947	)						(4,685	)			(5,219	)
Overage rent		1,560				1,282							4,386				3,840
Other property-related revenue		896				789							2,630				2,212
Total revenue		180,220				173,699							540,656				520,063
Property operating		(25,027	)			(24,241	)						(75,801	)			(71,700	)
Real estate taxes		(23,176	)			(21,974	)						(69,363	)			(67,158	)
Total expenses		(48,203	)			(46,215	)						(145,164	)			(138,858	)
Same Property NOI(3)	$	132,017			$	127,484			3.6	%		$	395,492			$	381,205			3.7	%
Reconciliation of Same Property NOI to most directly comparable GAAP measure:
Net operating income – same properties	$	132,017			$	127,484						$	395,492			$	381,205
Net operating income – sold properties		152				18,700							15,697				74,230
Net operating income – non-same activity(4)		6,972				5,756							18,558				17,309
Less: KRG share of unconsolidated joint ventures included in Same Property NOI above		(2,701	)			(2,484	)						(7,939	)			(3,218	)
Net gains from outlot sales		2,259				6,096							4,662				6,096
Total property NOI		138,699				155,552			(10.8	%)			426,470				475,622			(10.3	%)
Fee income		2,516				1,291							5,190				2,569
General, administrative and other		(15,041	)			(14,183	)						(43,534	)			(39,831	)
Depreciation and amortization		(79,655	)			(89,370	)						(243,750	)			(285,488	)
Impairment charges		(30,694	)			(39,305	)						(37,562	)			(39,305	)
Interest expense		(31,569	)			(33,162	)						(95,008	)			(100,168	)
Income tax expense of taxable REIT subsidiaries		(251	)			(106	)						(1,072	)			(315	)
Gain on sales of operating properties, net		2,341				5,742							90,068				108,855
Gain on deconsolidation of joint venture		—				—							60,625				—
Equity in loss of unconsolidated joint ventures		(3,775	)			(4,619	)						(7,335	)			(8,464	)
Other income, net		3,805				1,750							9,546				6,978
Net loss (income) attributable to noncontrolling interests		322				203							(4,242	)			(2,612	)
Net (loss) income attributable to common shareholders	$	(13,302	)		$	(16,207	)					$	159,396			$	117,841

(1)   Same Property NOI excludes the following: (i) Chastain Market and Founders Square, which were acquired in May 2026, and Village Commons and Legacy West, which were acquired in January and April 2025, respectively; (ii) The Corner – IN, which was reclassified from active development into our operating portfolio in March 2025; (iii) Eastgate Crossing, which was reclassified from our operating portfolio in September 2025 due to significant disruption caused by severe flooding as a result of Tropical Storm Chantal; (iv) our active development projects at One Loudoun; (v) Edwards Multiplex – Ontario, which was reclassified from our operating portfolio into redevelopment in March 2023; (vi) properties sold or classified as held for sale during 2025 and 2026; and (vii) standalone office properties, including the Carillon medical office building.
(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 (i) 52% of the NOI from three previously wholly owned properties that were contributed to the Seed Asset Joint Venture in June 2025 and (ii) 55% of the NOI from the One Loudoun Phase 1 Apartments (which 55% represents the Company’s expected final ownership percentage) and excludes the results of the Company’s insurance captive.
(4)   Includes non-cash activity as well as NOI from properties not included in the Same Property Pool.

The Company uses NOI, a non-GAAP financial measure, to evaluate the performance of our properties. The Company also uses total property NOI, which is defined as NOI plus net gains from outlot sales. 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. Beginning in 2026, the Company revised its Same Property NOI definition to exclude the results of the Company’s insurance captive to more clearly reflect the performance of our core real estate portfolio. 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, (v) significant prior period expense recoveries and adjustments, if any, and (vi) income or expense associated with the Company’s captive insurance company. 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. Additionally, because results from the Company’s insurance captive are driven by insurance underwriting, loss experience, and actuarial assumptions and therefore do not reflect the operating performance of our real estate properties, management believes excluding the impacts of the insurance captive improves transparency and comparability for the Company’s investors. 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 (i) 52% of the NOI from three previously wholly owned properties that were contributed to the Seed Asset Joint Venture in June 2025 and (ii) 55% of the NOI from the One Loudoun Phase 1 Apartments (which 55% represents the Company’s expected final ownership percentage) and excludes the results of the Company’s insurance captive.

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 nine months ended September 30, 2026, the Same Property Pool excludes the following: (i) Chastain Market and Founders Square, which were acquired in May 2026, and Village Commons and Legacy West, which were acquired in January and April 2025, respectively; (ii) The Corner – IN, which was reclassified from active development into our operating portfolio in March 2025; (iii) Eastgate Crossing, which was reclassified from our operating portfolio in September 2025 due to significant disruption caused by severe flooding as a result of Tropical Storm Chantal; (iv) our active development projects at One Loudoun; (v) Edwards Multiplex – Ontario, which was reclassified from our operating portfolio into redevelopment in March 2023; (vi) properties sold or classified as held for sale during 2025 and 2026; and (vii) standalone office properties, including the Carillon medical office building.

Kite Realty Group Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) (dollars in thousands) (unaudited)
	Three Months Ended September 30, 2026
Net loss	$	(13,624	)
Depreciation and amortization		79,655
Interest expense		31,569
Income tax expense of taxable REIT subsidiaries		251
EBITDA		97,851
Unconsolidated EBITDA, as adjusted		13,103
Impairment charges		30,694
Gain on sales of operating properties, net		(2,341	)
Other income and expense, net		(30	)
Adjusted EBITDA	$	139,277
Annualized Adjusted EBITDA(1)	$	557,108
Company share of Net Debt:
Mortgage and other indebtedness, net	$	2,807,320
Add: Company share of unconsolidated joint venture debt		270,431
Add: debt discounts, premiums and issuance costs, net		10,500
Less: Partner share of consolidated joint venture debt(2)		(88	)
Company’s consolidated debt and share of unconsolidated debt		3,088,163
Less: cash and cash equivalents		(32,542	)
Less: restricted cash and escrow deposits		(124,527	)
Less: Company share of unconsolidated joint venture cash and cash equivalents		(17,066	)
Company share of Net Debt	$	2,914,028
Net Debt to Adjusted EBITDA	5.2x

(1) Represents Adjusted EBITDA for the three months ended September 30, 2026 (as shown in the table above) multiplied by four.
(2) 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 adjusted for (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
Cooper Clark
VP, Capital Markets & Investor Relations
773.980.0213
coclark@kiterealty.com 

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Kite Realty Group's updated 2026 earnings guidance?

Kite Realty Group expects Core and NAREIT FFO of $2.08 to $2.12 per diluted share, compared with its previous $2.06 to $2.12 range. It expects net income of $0.88 to $0.92 per diluted share. The outlook assumes a bad debt reserve of 0.90% of total revenues at the midpoint.

How did Kite Realty Group perform in the third quarter of 2026?

Kite Realty Group reported a $13.3 million common-shareholder net loss, versus $16.2 million a year earlier, while diluted loss per share remained $0.07. Revenue declined to $190.275 million from $204.961 million. Same Property NOI increased 3.6%, and Core FFO per diluted share remained $0.52.

When will Kite Realty Group pay its fourth-quarter 2026 dividend?

The $0.29 per common share fourth-quarter dividend will be paid on or about January 15, 2027, to shareholders of record as of January 9, 2027. Total dividends declared for 2026 are $1.16 per common share, a 5.5% year-over-year increase.

What capped call terms accompany Kite Realty Group's exchangeable notes?

Kite Realty Group entered into capped call transactions with an initial cap of $41.91 per share, compared with the exchangeable notes' initial exchange price of approximately $35.40 per share. The operating partnership issued $345 million of 3.25% exchangeable senior notes due 2032 on July 2, 2026.

How much stock has Kite Realty Group repurchased during 2025 and 2026 to date?

Kite Realty Group repurchased approximately 22.0 million common shares for $539.1 million during 2025 and 2026 to date, at an average price of approximately $24.46 per share. Third-quarter 2026 repurchases were approximately 2.4 million common shares for $63.4 million, averaging $26.61 per share.