Document

EX-99.2 3 exhibit99_2xq12023.htm EX-99.2 Q1 2023 SUPPLEMENTAL Document


						Exhibit 99.2

Kite Realty Group Trust

Quarterly Financial Supplement as of March 31, 2023

T A B L E O F C O N T E N T S


Earnings Press Release			i–iii
Contact Information			1
Results Overview			2
Consolidated Balance Sheets			3
Consolidated Statements of Operations			4
Same Property Net Operating Income			5
Net Operating Income and Adjusted EBITDA by Quarter			6
Funds From Operations			7
Joint Venture Summary			8
Key Debt Metrics			9
Summary of Outstanding Debt			10
Maturity Schedule of Outstanding Debt			11

Development and Redevelopment Projects			12
Geographic Diversification – Retail ABR by Region and State			13
Top 25 Tenants by ABR			14
Retail Leasing Spreads			15
Lease Expirations			16
Components of Net Asset Value			17
Non-GAAP Financial Measures			18–19

Kite Realty Group Trust | 30 South Meridian Street, Suite 1100 | Indianapolis, Indiana 46204 | 888.577.5600 | www.kiterealty.com

PRESS RELEASE

Contact Information: Kite Realty Group Trust

Tyler Henshaw

SVP, Capital Markets & Investor Relations

317.713.7780

thenshaw@kiterealty.com

Kite Realty Group Trust Reports First Quarter 2023 Operating Results

Indianapolis, Indiana, May 1, 2023 – Kite Realty Group Trust (NYSE: KRG), a premier owner and operator of high-quality, open-air grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets, reported today its operating results for the first quarter ended March 31, 2023. For the quarters ended March 31, 2023 and 2022, net income attributable to common shareholders was $5.4 million, or $0.02 per diluted share, compared to net loss of $16.8 million, or $0.08 per diluted share, respectively.

Company raises 2023 guidance

Increased NAREIT FFO per share by 11% on a year-over-year basis

Same Property NOI increased by 6.5% on a year-over-year basis

Leased over 831,000 square feet at 13.0% comparable blended cash leasing spreads

“The KRG team continues to capitalize on a constructive leasing environment, as evidenced by the double-digit blended and non-option renewal cash leasing spreads,” said John A. Kite, Chairman and CEO. “The structural changes in consumer behavior experienced over the past several years continue to act as a tailwind to our well-positioned open-air retail portfolio. As an organization anchored in operational excellence and a rock-solid balance sheet, we believe KRG is positioned to thrive in any macroeconomic environment in 2023.”

First Quarter 2023 Financial and Operational Results

▪Generated NAREIT FFO of the Operating Partnership of $113.8 million, or $0.51 per diluted share.

▪Same Property NOI increased by 6.5%.

▪Executed 144 new and renewal leases representing over 831,000 square feet.

▪Cash leasing spreads of 38.0% on 17 comparable new leases, 10.0% on 77 comparable renewals, and 13.0% on a blended basis.

▪Excluding option renewals, the blended cash spreads for comparable new and non-option renewal leases were 21.1%.

▪Operating retail portfolio annualized base rent (ABR) per square foot of $20.04 at March 31, 2023, a 2.4% increase year-over-year.

▪Retail portfolio percent leased of 94.8% at March 31, 2023, a sequential increase of 20 basis points and a 120-basis point increase on a year-over-year basis.

▪Portfolio leased-to-occupied spread of 270 basis points, which equates to $30 million of signed-not-open NOI.

First Quarter 2023 Capital Allocation Activity

▪The Company currently has three active development projects with limited future capital commitments of $37.9 million.


			i

First Quarter 2023 Balance Sheet Overview

▪As of March 31, 2023, the Company’s net debt to Adjusted EBITDA was 5.3x, which represents a 0.4x year-over-year decrease.

▪The Company repaid five mortgages with an aggregate principal balance of $161.5 million with proceeds from the Company’s revolving line of credit and cash on hand.

▪Subsequent to quarter end, the Company closed on a $95.1 million 10-year mortgage at a fixed interest rate of 5.36% secured by its One Loudoun Residential joint venture project in Ashburn, Virginia. The mortgage generated gross proceeds of $92.7 million at the Company’s share, which were used to repay a portion of the outstanding balance on the Company’s $1.1 billion revolving line of credit. As of May 1, 2023, the outstanding balance on the Company’s revolving line of credit is $68.5 million.

Dividend

On April 28, 2023, the Company’s Board of Trustees declared a second quarter 2023 dividend of $0.24 per common share, which represents a 14% year-over-year increase. The second quarter dividend will be paid on July 14, 2023, to shareholders of record as of July 7, 2023.

2023 Earnings Guidance

The Company expects to generate net income attributable to common shareholders of $0.05 to $0.11 per diluted share in 2023. The Company is raising its 2023 NAREIT FFO guidance range to $1.92 to $1.98 per diluted share from $1.89 to $1.95 per diluted share, based, in part, on the following key assumptions at the midpoint:

▪2023 same property NOI range of 2.25% to 3.25%, which represents a 25-basis point increase at the midpoint.

▪Full-year bad debt assumption of 1.15% of total revenues, which represents a 10-basis point decrease at the midpoint.

▪Additional disruption related to Bed Bath & Beyond Inc. and Party City Holdings Inc. of 0.75% of total revenues ($0.03 of FFO per diluted share), of which approximately 70 basis points is related to the balance of 2023 and assumes no additional revenue from Bed Bath & Beyond Inc.

▪Transaction activity is expected to be earnings neutral.

The following table reconciles the Company’s 2023 net income guidance range to the Company’s 2023 NAREIT FFO guidance range:


	Low		High

Net income	$	0.05	$	0.11

Depreciation and amortization	1.87		1.87
NAREIT FFO	$	1.92	$	1.98

Earnings Conference Call

Kite Realty Group Trust will conduct a conference call to discuss its financial results on Tuesday, May 2, 2023, at 1:00 p.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: First Quarter 2023 Webcast. The dial-in registration link is: First Quarter 2023 Teleconference Registration. In addition, a webcast replay link will be available on KRG’s website.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators 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 mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 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


			ii

March 31, 2023, the Company owned interests in 181 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.5 million square feet of gross leasable space. For more information, please visit kiterealty.com.

Connect with KRG: LinkedIn | Twitter | 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 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements.

Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to: national and local economic, business, 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 a potential economic slowdown or recession, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending); the risk that our actual NOI for leases that have signed but not yet opened will not be consistent with expected NOI for leases that have signed but not yet opened; 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 tenants; the competitive environment in which the Company operates, including potential oversupplies of and 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 tenant’s 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 the Company’s properties in Texas, Florida, Maryland, New York, and North Carolina; civil unrest, acts of violence, terrorism or war, acts of God, climate change, epidemics, pandemics (including COVID-19), 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 short-term or long-term changes in consumer behavior due to COVID-19 and the fear of future pandemics; our ability to satisfy environmental, social or governance standards set by various constituencies; insurance costs and coverage; risks associated with cybersecurity attacks and the loss of confidential information and other business disruptions; other factors affecting the real estate industry generally; and other risks identified in reports the Company files with the Securities and Exchange Commission (“the SEC”) 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, 2022, 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.


			iii

Kite Realty Group Trust

Contact Information

Corporate Office

30 South Meridian Street, Suite 1100

Indianapolis, IN 46204

(888) 577-5600

(317) 577-5600

www.kiterealty.com

Investor Relations Contact

Analyst Coverage

Tyler Henshaw

Robert W. Baird & Co.

Green Street

Senior Vice President, Capital Markets and IR

Mr. Wes Golladay

Ms. Paulina Rojas Schmidt

(317) 713-7780

(216) 737-7510

(949) 640-8780

thenshaw@kiterealty.com

wgolladay@rwbaird.com

projasschmidt@greenstreet.com

Matt Hunt

Bank of America/Merrill Lynch

Jefferies LLC

Director, Capital Markets and IR

Mr. Jeffrey Spector/Mr. Craig Schmidt

Ms. Linda Tsai

(317) 713-7646

(646) 855-1363/(646) 855-3640

(212) 778-8011

mhunt@kiterealty.com

jeff.spector@bofa.com

ltsai@jefferies.com

craig.schmidt@bofa.com

J.P. Morgan

Transfer Agent

Barclays

Mr. Michael W. Mueller/Mr. Hongliang Zhang

Broadridge Financial Solutions

Mr. Anthony F. Powell

(212) 622-6689/(212) 622-6416

Ms. Kristen Tartaglione

(212) 526-8768

michael.w.mueller@jpmorgan.com/

2 Journal Square, 7th Floor

anthony.powell@barclays.com

hongliang.zhang@jpmorgan.com

Jersey City, NJ 07306

(201) 714-8094

BTIG

KeyBanc Capital Markets

Mr. Michael Gorman

Mr. Todd Thomas

(212) 738-6138

(917) 368-2286

mgorman@btig.com

tthomas@keybanccm.com

Stock Specialist

GTS

Citigroup Global Markets

Piper Sandler

545 Madison Avenue, 15th Floor

Mr. Craig Mailman

Mr. Alexander Goldfarb

New York, NY 10022

(212) 816-4471

(212) 466-7937

(212) 715-2830

craig.mailman@citi.com

alexander.goldfarb@psc.com

Compass Point Research & Trading, LLC

Raymond James

Mr. Floris van Dijkum

Mr. RJ Milligan

(646) 757-2621

(727) 567-2585

fvandijkum@compasspointllc.com

rjmilligan@raymondjames.com


1st Quarter 2023 Supplemental Financial and Operating Statistics			1

Kite Realty Group Trust

Results Overview

(dollars in thousands, except per share and per square foot amounts)


	Three Months Ended March 31,
Summary Financial Results	2023			2022

Total revenue (page 4)	$	206,750		$	194,391
Net income (loss) attributable to common shareholders (page 4)	$	5,391		$	(16,804)
Net income (loss) per diluted share (page 4)	$	0.02		$	(0.08)
Net operating income (NOI) (page 6)	$	150,482		$	139,295
Adjusted EBITDA (page 6)	$	138,869		$	128,295
NAREIT Funds From Operations (FFO) (page 7)	$	113,766		$	101,709
NAREIT FFO per diluted share (page 7)	$	0.51		$	0.46
FFO, as adjusted (page 7)	$	113,766		$	101,538
FFO, as adjusted per diluted share (page 7)	$	0.51		$	0.46

Dividend payout ratio (as % of NAREIT FFO, as adjusted)	47		%	41		%


	Three Months Ended
Summary Operating and Financial Ratios	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022

NOI margin (page 6)	73.7		%	73.7		%	74.5		%	73.2		%	72.7		%
NOI margin – retail (page 6)	74.4		%	74.3		%	75.0		%	73.8		%	73.1		%
Same property NOI performance (page 5)	6.5		%	6.2		%	4.4		%	3.8		%	5.9		%
Total property NOI performance (page 5)	8.0		%	29.2		%	182.7		%	190.5		%	182.7		%
Net debt to Adjusted EBITDA, current quarter (page 9)	5.3x			5.2x			5.4x			5.3x			5.7x
Recovery ratio of retail operating properties (page 6)	87.2		%	87.0		%	89.1		%	88.3		%	85.9		%
Recovery ratio of consolidated portfolio (page 6)	85.8		%	82.5		%	84.3		%	83.3		%	81.3		%

Outstanding Classes of Stock
Common shares and units outstanding (page 17)	222,360,110			222,056,355			222,054,091			222,056,695			221,559,185

Summary Portfolio Statistics
Number of properties
Operating retail (page 13)(1)	181			183			183			181			181
Office and other components	12			12			12			12			12
Development and redevelopment projects (page 12)	3			3			4			5			7
Owned retail operating gross leasable area (GLA)(2) (page 13)	28.5		M	28.8		M	28.9		M	28.8		M	28.8		M
Owned office GLA	1.6		M	1.6		M	1.6		M	1.6		M	1.6		M
Number of multifamily units(3)	1,672			1,672			1,672			1,672			1,690
Percent leased – total	94.5		%	94.4		%	93.9		%	93.7		%	93.5		%
Percent leased – retail	94.8		%	94.6		%	94.0		%	93.8		%	93.6		%
Anchor	97.4		%	97.0		%	96.4		%	96.1		%	96.1		%
Small shop	89.8		%	90.0		%	89.3		%	89.3		%	88.5		%

Annualized base rent (ABR) per square foot	$	20.04		$	20.02		$	19.86		$	19.66		$	19.57

Total new and renewal lease GLA (page 15)	831,231			1,034,055			1,574,338			1,198,263			1,053,963
New lease cash rent spread (page 15)	38.0		%	22.3		%	30.7		%	49.1		%	58.7		%
Renewal lease cash rent spread (page 15)	10.0		%	8.9		%	8.5		%	8.0		%	8.9		%
Total new and renewal lease cash rent spread (page 15)	13.0		%	11.4		%	10.8		%	13.2		%	16.1		%


2023 Guidance	Current (as of 5/1/23)	Previous (as of 2/13/23)

NAREIT FFO per diluted share	$1.92 to $1.98	$1.89 to $1.95


Credit Ratings and Outlook
Fitch Ratings	BBB / Stable
Moody's Investors Services	Baa3 / Stable
Standard & Poor's Rating Services	BBB- / Stable

(1)Excludes one operating retail property classified as held for sale as of March 31, 2023.

(2)Owned GLA represents gross leasable area owned by the Company and excludes the square footage of non-retail property components and development and redevelopment projects.

(3)Represents the number of multifamily units that the Company has an economic interest in.


1st Quarter 2023 Supplemental Financial and Operating Statistics			2

Kite Realty Group Trust

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)


	March 31, 2023		December 31, 2022
Assets:
Investment properties, at cost	$	7,719,677	$	7,732,573
Less: accumulated depreciation	(1,210,937)		(1,161,148)
Net investment properties	6,508,740		6,571,425

Cash and cash equivalents	43,733		115,799
Tenant and other receivables, including accrued straight-line rent of $47,863 and $44,460, respectively	103,474		101,301
Restricted cash and escrow deposits	8,962		6,171
Deferred costs, net	381,539		409,828

Prepaid and other assets	117,424		127,044
Investments in unconsolidated subsidiaries	10,341		10,414
Assets associated with investment property held for sale	22,727		—
Total assets	$	7,196,940	$	7,341,982

Liabilities and Equity:
Liabilities:
Mortgage and other indebtedness, net	$	2,972,567	$	3,010,299
Accounts payable and accrued expenses	160,142		207,792
Deferred revenue and other liabilities	294,760		298,039
Liabilities associated with investment property held for sale	939		—
Total liabilities	3,428,408		3,516,130

Commitments and contingencies
Limited Partners’ interests in the Operating Partnership and other redeemable noncontrolling interests	57,054		53,967

Equity:
Common shares, $0.01 par value, 490,000,000 shares authorized, 219,325,898 and 219,185,658 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	2,193		2,192
Additional paid-in capital	4,896,049		4,897,736
Accumulated other comprehensive income	62,787		74,344
Accumulated deficit	(1,255,025)		(1,207,757)
Total shareholders’ equity	3,706,004		3,766,515
Noncontrolling interests	5,474		5,370
Total equity	3,711,478		3,771,885
Total liabilities and equity	$	7,196,940	$	7,341,982


1st Quarter 2023 Supplemental Financial and Operating Statistics			3

Kite Realty Group Trust

Consolidated Statements of Operations

(dollars in thousands, except per share amounts)

(unaudited)


	Three Months Ended March 31,
	2023		2022
Revenue:
Rental income	$	203,063	$	190,892
Other property-related revenue	1,916		1,190
Fee income	1,771		2,309
Total revenue	206,750		194,391

Expenses:
Property operating	27,314		25,928
Real estate taxes	27,183		26,859
General, administrative and other	13,384		13,309
Merger and acquisition costs	—		925
Depreciation and amortization	108,071		121,504

Total expenses	175,952		188,525

Gain on sales of operating properties, net	—		3,168

Operating income	30,798		9,034
Other (expense) income:
Interest expense	(25,425)		(25,514)
Income tax benefit of taxable REIT subsidiary	29		71

Equity in loss of unconsolidated subsidiaries	(244)		(314)
Other income (expense), net	403		(103)
Net income (loss)	5,561		(16,826)
Net (income) loss attributable to noncontrolling interests	(170)		22
Net income (loss) attributable to common shareholders	$	5,391	$	(16,804)

Net income (loss) per common share – basic and diluted	$	0.02	$	(0.08)


Weighted average common shares outstanding – basic	219,233,569		218,981,168
Weighted average common shares outstanding – diluted	219,965,061		218,981,168


1st Quarter 2023 Supplemental Financial and Operating Statistics			4

Kite Realty Group Trust

Same Property Net Operating Income (“NOI”)

(dollars in thousands)

(unaudited)


	Three Months Ended March 31,
	2023	2022	Change

Number of properties in same property pool for the period(1)	177	177


Leased percentage at period end	94.9	%	93.8	%
Economic occupancy percentage(2)	92.3	%	90.4	%


Minimum rent	$	146,279	$	140,492
Tenant recoveries	42,124		40,274
Bad debt reserve	(1,699)		(1,607)
Other income, net	2,425		1,193
Total revenue	189,129		180,352

Property operating	(23,699)		(22,684)
Real estate taxes	(26,421)		(27,191)
Total expenses	(50,120)		(49,875)

Same Property NOI	$	139,009	$	130,477	6.5	%


Reconciliation of Same Property NOI to most directly comparable GAAP measure:
Net operating income – same properties	$	139,009	$	130,477

Net operating income – non-same activity(3)	11,473		8,818
Total property NOI	150,482		139,295		8.0	%
Other income, net	1,959		1,963
General, administrative and other	(13,384)		(13,309)
Merger and acquisition costs	—		(925)


Depreciation and amortization	(108,071)		(121,504)
Interest expense	(25,425)		(25,514)
Gain on sales of operating properties, net	—		3,168
Net (income) loss attributable to noncontrolling interests	(170)		22
Net income (loss) attributable to common shareholders	$	5,391	$	(16,804)

(1)Same Property NOI excludes the following:

▪properties acquired or placed in service during 2022 and 2023;

▪the multifamily rental units and commercial portion at One Loudoun Downtown – Pads G & H;

▪Shoppes at Quarterfield and Circle East, which were reclassified from active redevelopment into our operating portfolio in June 2022 and September 2022, respectively;

▪three active development and redevelopment projects noted on page 12;

▪Edwards Multiplex – Ontario, which was reclassified from our operating portfolio into redevelopment in March 2023;

▪properties sold or classified as held for sale during 2022 and 2023; and

▪office properties.

(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)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.


1st Quarter 2023 Supplemental Financial and Operating Statistics			5

Kite Realty Group Trust

Net Operating Income and Adjusted EBITDA by Quarter

(dollars in thousands)

(unaudited)


	Three Months Ended
	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Revenue:
Minimum rent(1)	$	149,310		$	147,882		$	145,511		$	145,255		$	140,171
Minimum rent – ground leases	10,586			10,472			10,715			10,207			10,634
Tenant reimbursements	42,857			40,245			40,043			41,470			39,836
Bad debt reserve	(1,555)			(2,403)			(1,881)			(1,172)			(571)
Other property-related revenue	1,106			2,202			2,099			2,746			90
Overage rent	1,865			3,380			1,287			446			822
Parking revenue, net(2)	121			345			284			456			534
Total revenue	204,290			202,123			198,058			199,408			191,516

Expenses:
Property operating – recoverable(3)	22,962			24,852			22,063			22,059			22,321
Property operating – non-recoverable(3)	3,881			4,387			3,059			3,717			3,237
Real estate taxes	26,965			23,934			25,458			27,704			26,663
Total expenses	53,808			53,173			50,580			53,480			52,221

NOI	150,482			148,950			147,478			145,928			139,295

Other (expense) income:
General, administrative and other	(13,384)			(12,883)			(14,859)			(13,809)			(13,309)

Fee income	1,771			1,936			1,623			2,671			2,309

Total other (expense) income	(11,613)			(10,947)			(13,236)			(11,138)			(11,000)

Adjusted EBITDA	138,869			138,003			134,242			134,790			128,295


Depreciation and amortization	(108,071)			(112,709)			(115,831)			(119,761)			(121,504)
Merger and acquisition costs	—			81			(108)			27			(925)
Interest expense	(25,425)			(26,827)			(26,226)			(25,709)			(25,514)
Equity in (loss) earnings of unconsolidated subsidiaries	(244)			312			144			114			(314)
Income tax benefit (expense) of taxable REIT subsidiary	29			(302)			—			188			71

Other income (expense), net	403			447			58			(162)			(103)
(Loss) gain on sales of operating properties, net	—			(57)			—			23,958			3,168
Net income (loss)	5,561			(1,052)			(7,721)			13,445			(16,826)
Less: net (income) loss attributable to noncontrolling interests	(170)			(74)			(116)			(314)			22
Net income (loss) attributable to common shareholders	$	5,391		$	(1,126)		$	(7,837)		$	13,131		$	(16,804)

NOI/Revenue – Retail properties	74.4		%	74.3		%	75.0		%	73.8		%	73.1		%
NOI/Revenue	73.7		%	73.7		%	74.5		%	73.2		%	72.7		%
Recovery Ratios(4)
– Retail properties	87.2		%	87.0		%	89.1		%	88.3		%	85.9		%
– Consolidated	85.8		%	82.5		%	84.3		%	83.3		%	81.3		%

(1)Minimum rent includes $0.5 million, $144,000, $153,000, $1.7 million, and $0.8 million of lease termination income for the three months ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.

(2)Parking revenue, net represents the net operating results of the Eddy Street Parking Garage, the Union Station Parking Garage, and the Pan Am Plaza Parking Garage.

(3)Recoverable expenses include recurring G&A expense of $3.5 million allocable to the property operations in the three months ended March 31, 2023, a portion of which is recoverable. Non-recoverable expenses primarily include ground rent, professional fees, and marketing costs.

(4)“Recovery Ratios” are computed by dividing tenant reimbursements by the sum of recoverable property operating expense and real estate tax expense. Tenant reimbursements for the three months ended December 31, 2022 have been reduced by $1.4 million due to reserves for Bed Bath & Beyond Inc. real estate tax reimbursements.


1st Quarter 2023 Supplemental Financial and Operating Statistics			6

Kite Realty Group Trust

Funds From Operations (“FFO”)(1)(2)

(dollars in thousands, except per share amounts)

(unaudited)


	Three Months Ended March 31,
	2023		2022

Net income (loss)	$	5,561	$	(16,826)
Less: net income attributable to noncontrolling interests in properties	(104)		(144)
Less: gain on sales of operating properties, net	—		(3,168)

Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	108,309		121,847
FFO of the Operating Partnership(1)	113,766		101,709
Less: Limited Partners’ interests in FFO	(1,507)		(1,118)
FFO attributable to common shareholders(1)	$	112,259	$	100,591
FFO, as defined by NAREIT, per share of the Operating Partnership – basic	$	0.51	$	0.46
FFO, as defined by NAREIT, per share of the Operating Partnership – diluted	$	0.51	$	0.46

FFO of the Operating Partnership(1)	$	113,766	$	101,709

Add: merger and acquisition costs	—		925


Less: prior period collection impact	—		(1,096)
FFO, as adjusted, of the Operating Partnership	$	113,766	$	101,538
FFO, as adjusted, per share of the Operating Partnership – basic	$	0.51	$	0.46
FFO, as adjusted, per share of the Operating Partnership – diluted	$	0.51	$	0.46

Weighted average common shares outstanding – basic	219,233,569		218,981,168
Weighted average common shares outstanding – diluted	219,965,061		220,202,896

Weighted average common shares and units outstanding – basic	222,186,023		221,428,198
Weighted average common shares and units outstanding – diluted	222,917,515		222,649,925

FFO, as defined by NAREIT, per diluted share/unit
Net income (loss)	$	0.02	$	(0.08)
Less: net income attributable to noncontrolling interests in properties	0.00		0.00
Less: gain on sales of operating properties, net	0.00		(0.01)

Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	0.49		0.55
FFO, as defined by NAREIT, of the Operating Partnership per diluted share/unit(1)(2)	$	0.51	$	0.46

Add: merger and acquisition costs	0.00		0.00

Less: prior period collection impact	0.00		0.00

FFO, as adjusted, of the Operating Partnership per diluted share/unit(2)	$	0.51	$	0.46

Reconciliation of FFO, as adjusted, to Adjusted Funds From Operations (AFFO)
FFO, as adjusted, of the Operating Partnership	$	113,766	$	101,538
Less: non-cash income adjustments	7,581		6,329
Less: maintenance capital expenditures	3,039		3,719
Less: tenant-related capital expenditures(3)	15,139		13,010
Total Recurring AFFO of the Operating Partnership	$	88,007	$	78,480

(1)“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)Per share/unit amounts of components will not necessarily sum to the total due to rounding to the nearest cent.

(3)Excludes landlord work, tenant improvements and leasing commissions related to development and redevelopment projects.


1st Quarter 2023 Supplemental Financial and Operating Statistics			7

Kite Realty Group Trust

Joint Venture Summary as of March 31, 2023

(dollars in thousands)


Consolidated Investments
Investments	Total Debt		Partner Economic Ownership Interest(1)		Partner Share of Debt		Partner Share of Annual Income

Delray Marketplace	$	28,113	2	%	$	562	$	—
One Loudoun – Pads G&H Residential	—		10	%	—		416
Total	$	28,113			$	562	$	416


Unconsolidated Investments
Investments	Retail GLA	Multifamily Units	Total Debt		KRG Economic Ownership Interest		KRG Share of Debt		KRG Investment		KRG Share of Quarterly Adjusted EBITDA		KRG Share of Quarterly Adjusted EBITDA Annualized

Three Property Retail Portfolio	416,576	—	$	51,890	20	%	$	10,378	$	7,658	$	335	$	1,340
Glendale Center Apartments	—	267	31,500		11.5	%	3,623		46		54		216
Embassy Suites at Eddy Street Commons	—	—	33,318		35	%	11,661		—		27		108
The Corner (development)	24,000	285	37,161		50	%	18,581		125		—		—
Other investments	—	—	—		—	%	—		2,512		34		136
Total	440,576	552	$	153,869			$	44,243	$	10,341	$	450	$	1,800

(1)Economic ownership % represents the partner’s share of cash flow.


1st Quarter 2023 Supplemental Financial and Operating Statistics			8

Kite Realty Group Trust

Key Debt Metrics as of March 31, 2023

(dollars in thousands)


Senior Unsecured Notes Covenants
	March 31, 2023			Debt Covenant Threshold(1)

Total debt to undepreciated assets	37%			<60%

Secured debt to undepreciated assets	1%			<40%

Undepreciated unencumbered assets to unsecured debt	278%			>150%

Debt service coverage	5.2x			>1.5x

Unsecured Credit Facility Covenants
	March 31, 2023			Debt Covenant Threshold(1)

Maximum leverage	37%			<60%

Minimum fixed charge coverage	4.3x			>1.5x

Secured indebtedness	1.4%			<45%

Unsecured debt interest coverage	4.5x			>1.75x

Unsecured leverage	36%			<60%

Senior Unsecured Debt Ratings

Fitch Ratings	BBB/Stable
Moody's Investors Service	Baa3/Stable
Standard & Poor's Rating Services	BBB-/Stable


Liquidity

Cash and cash equivalents	$	43,733
Availability under unsecured credit facility	974,700
	$	1,018,433


Unencumbered NOI as a % of Total NOI	96		%

(1)For a complete listing of all debt covenants related to the Company’s Senior Unsecured Notes and Unsecured Credit Facility, as well as definitions of the terms, refer to the Company’s filings with the SEC.


Net Debt to Adjusted EBITDA
Company's consolidated debt and share of unconsolidated debt			$	2,984,601
Less: cash, cash equivalents, and restricted cash			(54,953)
			$	2,929,648
Q1 2023 Adjusted EBITDA, Annualized:
– Consolidated Adjusted EBITDA	$	555,476
– Unconsolidated Adjusted EBITDA(1)	1,800
– Minority interest Adjusted EBITDA(1)	(416)		556,860
Ratio of Company share of Net Debt to Adjusted EBITDA			5.3x

(1)See page 8 for details.


1st Quarter 2023 Supplemental Financial and Operating Statistics			9

Kite Realty Group Trust

Summary of Outstanding Debt as of March 31, 2023

(dollars in thousands)


Total Outstanding Debt	Amount Outstanding		Ratio		Weighted Average Interest Rate		Weighted Average Years to Maturity

Fixed rate debt(1)	$	2,632,807	89	%	3.97	%	4.3
Variable rate debt(2)	308,113		10	%	7.53	%	3.3
Debt discounts, premiums and issuance costs, net	31,647		N/A		N/A		N/A
Total consolidated debt	2,972,567		99	%	4.34	%	4.2
KRG share of unconsolidated debt	44,243		1	%	6.04	%	6.1
Total	$	3,016,810	100	%	4.37	%	4.2


Schedule of Maturities by Year
	Secured Debt
	Scheduled Principal Payments		Term Maturities		Unsecured Debt		Total Consolidated Debt		Total Unconsolidated Debt		Total Debt Outstanding

2023	$	2,261	$	27,813	$	95,000	$	125,074	$	203	$	125,277
2024	2,721		—		269,635		272,356		3,905		276,261
2025	2,848		—		430,000		432,848		11,176		444,024
2026	2,981		—		550,000		552,981		—		552,981
2027	3,120		—		375,000		378,120		—		378,120
2028 and beyond	27,061		2,480		1,150,000		1,179,541		28,959		1,208,500
Debt discounts, premiums and issuance costs, net	—		1,370		30,277		31,647		—		31,647
Total	$	40,992	$	31,663	$	2,899,912	$	2,972,567	$	44,243	$	3,016,810

(1)Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of March 31, 2023, $820.0 million in variable rate debt is hedged to a fixed rate for a weighted average of 2.4 years.

(2)Variable rate debt includes the portion of fixed rate debt that has been hedged by interest rate swaps. As of March 31, 2023, $155.0 million in fixed rate debt is hedged to a floating rate for a weighted average of 2.4 years.


1st Quarter 2023 Supplemental Financial and Operating Statistics			10

Kite Realty Group Trust

Maturity Schedule of Outstanding Debt as of March 31, 2023

(dollars in thousands)


Description	Interest Rate(1)	Maturity Date	Balance as of March 31, 2023		% of Total Outstanding

Delray Marketplace(2)	BSBY + 160	8/4/2023	$	28,113
Senior Unsecured Notes	4.23%	9/10/2023	95,000
2023 Debt Maturities			123,113		4	%

Senior Unsecured Notes	4.58%	6/30/2024	149,635
Unsecured Term Loan(3)	2.68%	7/17/2024	120,000
2024 Debt Maturities			269,635		9	%

Senior Unsecured Notes	4.00%	3/15/2025	350,000
Senior Unsecured Notes(4)	LIBOR + 365	9/10/2025	80,000
2025 Debt Maturities			430,000		14	%

Unsecured Term Loan(5)	2.73%	7/17/2026	150,000
Senior Unsecured Notes	4.08%	9/30/2026	100,000
Senior Unsecured Notes	4.00%	10/1/2026	300,000
2026 Debt Maturities			550,000		18	%

Unsecured Credit Facility(6)	SOFR + 120	1/8/2027	125,000
Senior Unsecured Exchangeable Notes	0.75%	4/1/2027	175,000
Northgate North	4.50%	6/1/2027	22,851
Senior Unsecured Notes(6)	LIBOR + 375	9/10/2027	75,000
2027 Debt Maturities			397,851		13	%

Unsecured Term Loan(7)	5.09%	10/24/2028	250,000
Senior Unsecured Notes	4.24%	12/28/2028	100,000
Senior Unsecured Notes	4.82%	6/28/2029	100,000
Unsecured Term Loan(8)	4.05%	7/29/2029	300,000
Rampart Commons	5.73%	6/10/2030	7,138
Senior Unsecured Notes	4.75%	9/15/2030	400,000
The Shoppes at Union Hill	3.75%	6/1/2031	9,756
Nora Plaza Shops	3.80%	2/1/2032	3,427
2028 and beyond Debt Maturities			1,170,321		39	%
Debt discounts, premiums and issuance costs, net			31,647
Total debt per consolidated balance sheet			$	2,972,567	99	%

KRG share of unconsolidated debt
Glendale Center Apartments	SOFR + 265	5/31/2024	$	3,623
Embassy Suites at Eddy Street Commons	LIBOR + 250	7/1/2025	11,661
Three Property Retail Portfolio	4.09%	7/1/2028	10,378
The Corner (development)(9)	LIBOR + 275	2/15/2033	18,581
Total KRG share of unconsolidated debt			44,243		1	%
Total consolidated and KRG share of unconsolidated debt			$	3,016,810

(1)At March 31, 2023, one-month BSBY was 4.92%, one-month LIBOR was 4.86%, three-month LIBOR was 5.19%, one-month SOFR was 4.80%, and daily SOFR was 4.87%.

(2)Property is held in a joint venture. The loan is guaranteed by Kite Realty Group, LP.

(3)Term loan is hedged to a fixed rate of 1.58% plus a credit spread of 1.10% based on the Company’s current credit rating.

(4)Notes due 2025 are hedged to a floating rate until September 10, 2025. Notes due 2027 are hedged to a floating rate until September 10, 2025 and revert back to a fixed rate of 4.57% until maturity in 2027.

(5)Term loan is hedged to a fixed rate of 1.68% plus a credit spread of 1.05% based on the Company’s current credit rating.

(6)Assumes the Company exercises its option to extend the maturity date by one year to 2027.

(7)Assumes the Company exercises three one-year options to extend the maturity date to 2028. Term loan is hedged to a fixed rate of 5.09% until the initial maturity of October 24, 2025. Term loan interest rate reverts back to floating rate of SOFR + 2.10% beyond the initial maturity date.

(8)Term loan is hedged to a fixed rate of 2.70% through November 22, 2023 and subsequently to a fixed rate of 2.47% through August 1, 2025. Term loan interest rate reverts back to floating rate of SOFR from August 1, 2025 to the maturity date of July 29, 2029. In addition to the indicated rate, a credit spread of 1.35% is applicable across all time periods based on the Company’s current credit rating.

(9)The Corner (development) includes three loans with varying rates and maturity dates. As of March 31, 2023, the loans had a weighted average interest rate of 7.50% and a majority of the amount outstanding was at a floating rate. The maturity date shown is the weighted average maturity date as of March 31, 2023.


1st Quarter 2023 Supplemental Financial and Operating Statistics			11

Kite Realty Group Trust

Development and Redevelopment Projects

(dollars in thousands)


Project	MSA	KRG Ownership %	Projected Completion Date(1)	Total Commercial GLA	Total Multifamily Units	Total Project Costs – at KRG's Share(2)		KRG Equity Requirement(2)		KRG Remaining Spend		Estimated Stabilized NOI to KRG	Estimated Remaining NOI to Come Online(3)

Active Projects

The Landing at Tradition – Phase II	Port St. Lucie, FL	100%	Q3 2023	39,900	—	$	11,200	$	11,200	$	1,900	$1.1M–$1.2M	$0.2M–$0.4M

Carillon MOB	Washington, D.C./Baltimore	100%	Q4 2024	126,000	—	59,700		59,700		36,000		$3.5M–$4.0M	$1.7M–$2.2M

The Corner – IN(4)	Indianapolis, IN	50%	Q4 2024	24,000	285	31,900		—		—		$1.7M–$1.9M	$1.7M–$1.9M

Total				189,900	285	$	102,800	$	70,900	$	37,900	$6.3M–$7.1M	$3.6M–$4.5M

Future Opportunities(5)

Project

MSA

Project Description

Hamilton Crossing Centre – Phase II

Indianapolis, IN

Addition of mixed-use (multifamily, office and retail) components adjacent to the Republic Airways headquarters.

Carillon

Washington, D.C./Baltimore

Potential of 1.2 million square feet of commercial GLA and 3,000 multifamily units for additional expansion.

One Loudoun

Washington, D.C./Baltimore

Potential of 1.9 million square feet of commercial GLA and 1,745 multifamily units for additional expansion.

Main Street Promenade

Chicago, IL

Potential of 16,000 square feet of commercial GLA for additional expansion.

Downtown Crown

Washington, D.C./Baltimore

Potential of 42,000 square feet of commercial GLA for additional expansion.

Edwards Multiplex – Ontario

Los Angeles, CA

Potential redevelopment of existing Regal Theatre.

(1)Projected completion date represents the earlier of one year after completion of project construction or substantial occupancy of the property.

(2)Total project costs and KRG equity requirement represent costs to KRG post-merger and exclude any costs spent to date prior to the merger.

(3)Estimated remaining NOI to come online excludes in-place NOI and NOI related to tenants that have signed leases but have not yet commenced paying rent.

(4)The Company does not have any equity requirements related to this development. Total project costs are at KRG’s share and are net of KRG’s share of a $13.5 million TIF.

(5)These opportunities are deemed potential at this time and are subject to various contingencies, many of which could be beyond the Company’s control.


1st Quarter 2023 Supplemental Financial and Operating Statistics			12

Kite Realty Group Trust

Geographic Diversification – Retail ABR by Region and State as of March 31, 2023

(dollars in thousands)


Region/State	Number of Properties(1)	Owned GLA/NRA(2)	Total Weighted Retail ABR(3)		% of Weighted Retail ABR(3)
South
Texas	44	7,472	$	148,716	25.8	%
Florida	30	3,580	63,322		11.0	%
Maryland	9	1,780	39,434		6.8	%
North Carolina	8	1,534	31,863		5.5	%
Virginia	7	1,131	29,447		5.1	%
Georgia	10	1,707	26,213		4.6	%
Tennessee	3	580	8,475		1.5	%
Oklahoma	3	505	8,052		1.4	%
South Carolina	2	262	3,351		0.6	%
Total South	116	18,551	358,873		62.3	%

West
Washington	10	1,683	30,748		5.3	%
Nevada	5	839	27,786		4.8	%
Arizona	5	726	15,293		2.7	%
California	2	530	12,566		2.2	%
Utah	2	388	8,050		1.4	%
Total West	24	4,166	94,443		16.4	%

Midwest
Indiana	15	1,632	29,581		5.1	%
Illinois	8	1,163	24,407		4.2	%
Michigan	1	308	6,948		1.2	%
Missouri	1	453	4,035		0.7	%
Ohio	1	236	2,152		0.4	%
Total Midwest	26	3,792	67,123		11.6	%

Northeast
New York	8	1,083	34,105		5.9	%
New Jersey	4	339	11,697		2.0	%
Massachusetts	1	272	4,277		0.8	%
Connecticut	1	206	3,640		0.6	%
Pennsylvania	1	136	1,983		0.4	%
Total Northeast	15	2,036	55,702		9.7	%

Total(4)	181	28,545	$	576,141	100.0	%

(1)Number of properties represents consolidated and unconsolidated retail properties.

(2)Owned GLA/NRA represents gross leasable area owned by the Company and excludes the square footage of development and redevelopment projects.

(3)Total weighted retail ABR and percent of weighted retail ABR includes ground lease rent and represents the Company’s share of the ABR at consolidated and unconsolidated properties.

(4)Excludes one operating retail property classified as held for sale as of March 31, 2023.


1st Quarter 2023 Supplemental Financial and Operating Statistics			13

Kite Realty Group Trust

Top 25 Tenants by ABR as of March 31, 2023

(dollars in thousands, except per square foot data)

The following table includes the Company’s retail operating properties.


									Credit Ratings
	Tenant	Primary DBA/ Number of Stores	Number of Stores(1)	Total Leased GLA/NRA(2)	ABR(3)		% of Weighted ABR(4)		S&P	Moody’s

1	The TJX Companies, Inc.	T.J. Maxx (18), Marshalls (12), HomeGoods (11), Homesense (2), T.J. Maxx & HomeGoods combined (2)	45	1,322	$	14,520	2.5	%	A	A2

2	Best Buy Co., Inc.	Best Buy (15), Pacific Sales (1)	16	633	11,234		1.9	%	BBB+	A3

3	Ross Stores, Inc.	Ross Dress for Less (31), dd’s DISCOUNTS (1)	32	908	10,800		1.9	%	BBB+	A2

4	PetSmart, Inc.		32	657	10,588		1.8	%	B+	B1

5	Gap Inc.	Old Navy (25), The Gap (3), Banana Republic (3), Athleta (3)	34	455	8,365		1.5	%	BB	Ba3

6	Michaels Stores, Inc.	Michaels	28	631	8,257		1.4	%	N/A	N/A

7	Dick’s Sporting Goods, Inc.	Dick’s Sporting Goods (12), Golf Galaxy (1)	13	625	7,893		1.4	%	BBB	Baa3

8	Bed Bath & Beyond Inc.	Bed Bath & Beyond (13), buybuy BABY (9)	22	582	7,829		1.4	%	CCC-	Ca

9	Publix Super Markets, Inc.		14	669	6,886		1.2	%	N/A	N/A

10	The Kroger Co.	Kroger (6), Harris Teeter (2), QFC (1), Smith’s (1)	10	355	5,844		1.0	%	BBB	Baa1

11	Lowe’s Companies, Inc.		6	—	5,838		1.0	%	BBB+	Baa1

12	Total Wine & More		14	332	5,720		1.0	%	N/A	N/A

13	BJ’s Wholesale Club, Inc.		3	115	5,464		0.9	%	BB+	N/A

14	Ulta Beauty, Inc.		25	259	5,426		0.9	%	N/A	N/A

15	Petco Health And Wellness Company, Inc.		20	279	5,153		0.9	%	B+	B1

16	Albertsons Companies, Inc.	Safeway (3), Jewel-Osco (2), Tom Thumb (2)	7	395	5,040		0.9	%	BB	Ba2

17	Five Below, Inc.		29	258	5,003		0.9	%	N/A	N/A

18	Burlington Stores, Inc.		9	473	4,937		0.9	%	BB+	N/A

19	Fitness International, LLC		6	242	4,884		0.8	%	B-	B3

20	Kohl’s Corporation		7	361	4,865		0.8	%	BB	Ba1

21	DSW Designer Shoe Warehouse		16	314	4,556		0.8	%	N/A	N/A

22	Nordstrom, Inc.		8	259	4,494		0.8	%	BB+	Ba1

23	Ahold U.S.A. Inc.	Stop & Shop (3), Giant Foods (1)	4	239	4,493		0.8	%	BBB+	Baa1

24	Walgreens Boots Alliance, Inc.		8	133	4,453		0.8	%	BBB	Baa3

25	Office Depot, Inc.	Office Depot (11), OfficeMax (3)	14	308	4,380		0.8	%	N/A	N/A

	Total Top Tenants		422	10,804	$	166,922	29.0	%

(1)Number of stores represents stores at consolidated and unconsolidated properties.

(2)Total leased GLA/NRA excludes the square footage of structures located on land owned by the Company and ground-leased to tenants.

(3)ABR represents the monthly contractual rent for March 31, 2023, for each applicable tenant multiplied by 12 and does not include tenant reimbursements. ABR represents 100% of the ABR at consolidated properties and the Company’s share of the ABR at unconsolidated properties including ground lease rent.

(4)Percent of weighted ABR includes ground lease rent and represents the Company’s share of the ABR at consolidated and unconsolidated properties.


1st Quarter 2023 Supplemental Financial and Operating Statistics			14

Kite Realty Group Trust

Retail Leasing Spreads


			Comparable Space(1)(2)
Category	Total Leases(1)	Total Sq. Ft.(1)	Leases	Sq. Ft.	Prior Rent PSF(3)		New Rent PSF(4)		Cash Rent Spread		TI, LL Work, Lease Commissions PSF(5)

New Leases – Q1 2023	44	225,651	17	58,287	$	21.58	$	29.78	38.0	%
New Leases – Q4 2022	51	309,042	21	160,787	18.31		22.39		22.3	%
New Leases – Q3 2022	61	207,224	22	67,920	32.45		42.41		30.7	%
New Leases – Q2 2022	68	277,184	26	137,488	14.70		21.92		49.1	%
Total	224	1,019,101	86	424,482	$	19.85	$	26.46	33.3	%	$	78.80

Renewals – Q1 2023	100	605,580	77	512,725	$	20.83	$	22.92	10.0	%
Renewals – Q4 2022	122	725,013	105	624,805	20.45		22.27		8.9	%
Renewals – Q3 2022	160	1,367,114	134	1,282,347	15.53		16.86		8.5	%
Renewals – Q2 2022	138	921,079	119	849,958	16.13		17.41		8.0	%
Total	520	3,618,786	435	3,269,835	$	17.46	$	18.99	8.8	%	$	0.90

Total – Q1 2023	144	831,231	94	571,012	$	20.90	$	23.62	13.0	%
Total – Q4 2022	173	1,034,055	126	785,592	20.01		22.30		11.4	%
Total – Q3 2022	221	1,574,338	156	1,350,267	16.38		18.14		10.8	%
Total – Q2 2022	206	1,198,263	145	987,446	15.93		18.04		13.2	%
Total	744	4,637,887	521	3,694,317	$	17.73	$	19.84	11.9	%	$	9.86

(1)Excludes office and ground leases. Comparable space leases on this table are included for second generation retail spaces. Comparable leases represent those leases for which there was a former tenant within the last 12 months.

(2)Comparable renewals exclude leases with terms 24 months or shorter.

(3)Prior rent represents minimum rent, if any, paid by the prior tenant in the final 12 months of the term. All amounts reported at lease execution.

(4)Contractual rent represents contractual minimum rent per square foot for the first 12 months of the lease.

(5)Includes redevelopment costs for tenant-specific landlord work and tenant allowances provided to tenants.


1st Quarter 2023 Supplemental Financial and Operating Statistics			15

Kite Realty Group Trust

Lease Expirations as of March 31, 2023

(dollars in thousands, except per square foot data)

The following table includes the Company’s operating retail properties and development/redevelopment property tenants open for business who have commenced paying rent as of March 31, 2023.


Retail Portfolio
		Expiring GLA – Retail(2)						Expiring ABR per Sq. Ft.(3)
	Number of Expiring Leases(1)	Shop Tenants	Anchor Tenants	Expiring ABR (Pro rata)		% of Total ABR (Pro rata)		Shop Tenants		Anchor Tenants		Total

2023	369	852,991	685,040	$	36,817	6.8	%	$	30.09	$	16.40	$	23.98
2024	600	1,442,102	2,367,103	75,977		14.1	%	31.60		13.25		20.30
2025	476	1,132,492	2,626,044	68,867		12.8	%	31.17		13.07		18.57
2026	449	1,019,274	2,375,716	65,139		12.1	%	31.03		14.43		19.49
2027	509	1,189,380	2,502,486	71,800		13.3	%	31.48		13.89		19.58
2028	413	963,103	2,686,546	71,006		13.2	%	34.11		14.22		19.46
2029	197	484,155	1,337,140	36,637		6.8	%	33.36		16.46		21.14
2030	140	415,979	619,244	21,321		3.9	%	29.78		14.76		20.74
2031	129	360,269	619,508	21,332		4.0	%	31.80		16.11		21.85
2032	163	399,759	1,079,063	27,821		5.2	%	31.25		14.73		19.22
Beyond	198	479,949	1,552,897	42,030		7.8	%	33.94		16.61		20.69
	3,643	8,739,453	18,450,787	$	538,747	100.0	%	$	31.72	$	14.47	$	20.06

(1)Lease expirations table reflects rents in place as of March 31, 2023 and does not include option periods; 2023 expirations include 72 month-to-month retail tenants. This column also excludes ground leases.

(2)Expiring GLA excludes the square footage of structures located on land owned by the Company and ground-leased to tenants.

(3)ABR represents the monthly contractual rent as of March 31, 2023 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.


1st Quarter 2023 Supplemental Financial and Operating Statistics			16

Kite Realty Group Trust

Components of Net Asset Value as of March 31, 2023

(dollars in thousands)


Cash Net Operating Income (NOI)			Page	Other Assets(1)			Page

GAAP property NOI (incl. ground lease revenue)	$	150,482	6	Cash, cash equivalents, and restricted cash	$	52,695	3
Non-cash revenue adjustments	(6,278)			Tenant and other receivables (net of SLR)	55,611		3
Other property-related revenue	(1,106)		6	Prepaid and other assets	117,424		3
Ground lease (“GL”) revenue	(10,586)		6
Consolidated Cash Property NOI (excl. GL)	$	132,512

Annualized Consolidated Cash Property NOI (excl. ground leases)	$	530,048

Adjustments to Normalize Annualized Cash NOI				Liabilities

Remaining NOI to come online from development and redevelopment projects(2)	$	4,050	12	Mortgage and other indebtedness, net	$	(2,940,920)	10
Unconsolidated Adjusted EBITDA	1,800		8	Pro rata adjustment for joint venture debt	(43,681)		8
General and administrative expense allocable to property management activities included in property expenses ($3.5 million in Q1)	14,000		6, note 3	Accounts payable and accrued expenses	(160,142)		3
Total Adjustments	19,850			Other liabilities	(294,760)		3
				Projected remaining under construction development/redevelopment(3)	(37,900)		12
Annualized Normalized Portfolio Cash NOI (excl. ground leases)	$	549,898
Annualized ground lease NOI	42,344
Total Annualized Portfolio Cash NOI(4)	$	592,242		Common shares and Units outstanding	222,360,110

(1)Excludes construction in progress and entitled land held for development.

(2)Excludes the projected cash NOI and related cost from the future opportunities outlined on page 12.

(3)Remaining costs on page 12 for development projects.

(4)The above components of net asset value exclude NOI related to tenants that have signed leases but have not yet commenced paying rent as of March 31, 2023.


1st Quarter 2023 Supplemental Financial and Operating Statistics			17

Kite Realty Group Trust

Non-GAAP Financial Measures

Funds from Operations

Funds From Operations (“FFO”) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of 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 flow 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. A reconciliation of net income (calculated in accordance with GAAP) to FFO is included elsewhere in this Financial Supplement.

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) in 2022, the impact of prior period bad debt or the collection of accounts receivable previously written off (“prior period collection impact”) due to the recovery from the COVID-19 pandemic, which are not otherwise adjusted in the Company’s calculation of FFO.

Adjusted Funds from Operations

Adjusted Funds From Operations (“AFFO”) is a non-GAAP financial measure of operating performance used by many companies in the real estate industry. AFFO modifies FFO for certain cash and non-cash transactions that are not included in FFO. AFFO should not be considered 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. Management considers AFFO a useful supplemental measure of the Company’s performance. The Company’s computation of AFFO may differ from the methodology for calculating AFFO used by other REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net income (calculated in accordance with GAAP) to AFFO is included elsewhere in this Financial Supplement.

Net Operating Income, Cash Net Operating Income and Same Property Net Operating Income

The Company uses property net operating income (“NOI”) and cash NOI, which are non-GAAP financial measures, to evaluate the performance of our properties. The Company defines NOI and cash NOI as income from our real estate, including lease termination fees received from tenants, less our property operating expenses. NOI and cash NOI exclude amortization of capitalized tenant improvement costs and leasing commissions and certain corporate level expenses, including merger and acquisition costs. Cash NOI also excludes other property-related revenue as that activity is recurring but unpredictable in its occurrence, straight-line rent adjustments, and amortization of in-place lease liabilities, net. The Company believes that NOI and cash NOI are helpful to investors as measures of our operating 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 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.


1st Quarter 2023 Supplemental Financial and Operating Statistics			18

Kite Realty Group Trust

Non-GAAP Financial Measures (continued)

Net Operating Income and Same Property Net Operating Income (continued)

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.

NOI and Same Property NOI should not, however, be considered as alternatives to net income (calculated in accordance with GAAP) as indicators 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 months ended March 31, 2023, the same property pool excludes the following: (i) properties acquired or placed in service during 2022 and 2023; (ii) the multifamily rental units and commercial portion at One Loudoun Downtown – Pads G & H; (iii) Shoppes at Quarterfield and Circle East, which were reclassified from active redevelopment into our operating portfolio in June 2022 and September 2022, respectively; (iv) three active development and redevelopment projects; (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 2022 and 2023; and (vii) office properties.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Net Debt to Adjusted EBITDA

The Company defines EBITDA, a non-GAAP financial measure, as net income before interest expense, income tax expense of the taxable REIT subsidiary, and depreciation and amortization. For informational purposes, the Company also provides Adjusted EBITDA, which it defines as EBITDA less (i) Adjusted EBITDA from unconsolidated entities, (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.


1st Quarter 2023 Supplemental Financial and Operating Statistics			19