Home Featured Kite Realty Group Trust Balance Sheet Remains Strong

Kite Realty Group Trust Balance Sheet Remains Strong


During the past quarter, Kite Realty Group Trust has continued executing on its strategic objectives while remaining focused on its long-term goals. As John Kite, CEO, noted on the company’s Q3 call, the company generated FFO of $41.1 million or $.048 per share. “We grew a same-store NOI by 1.5% compared to last year. This increase was driven by base rent growth of 1.9%. We improved our ABR by 5% over the past year to $16.77 per square foot and we continued growing our small shop lease percentage to 90.9%, 120 basis points higher than this time last year.”

He explained that the company’s investment grade balance sheet remains strong. “We currently have only $20.7 million of loan maturities through 2020. Following the third quarter we closed on a new $250 million ten-year unsecured term loan. Based on the indicative pricing we expect the all in swap rate on this loan to be approximately 50 basis points inside of a public bond issuance.”

He explained that the firm’s “unique structure was a result of our team’s ingenuity and our strong lending partnerships. The loan allowed us to improve our weighted average debt maturity to six years which is an increase of one full year. The loan also improved our debt maturity ladder so that no more than 20% of our debt comes due in any calendar year and we use the loan proceeds to fully retire the $200 million seven-year term loan due in 2022 and prepay $50 million of the five year term loan due in 2021.”

This innovative credit product reduces the company’s risk and improves its financial flexibility, he explained. “While our net debt to EBITDA slightly picked up this past quarter to 6.7 times, we remain committed to reducing our leverage in the near term. Looking at operations, approximately 70% of our executed leases and tenant openings in the third quarter are restaurant, grocery and service offerings.”

The company also made further progress than its anchor leasing efforts by executing two box leases in the third quarter and subsequent to quarter end the company signed two additional box leases bringing its current anchor lease percentage to 95.5%. “Thus far year-to-date we’ve signed anchor boxes in our operating portfolio compared to having signed two at this time last year.”