Kite Realty Group Trust · NYSE:KRG

Kite Realty Group Trust — Investor Presentation (November 2015)

19 slides from Kite Realty Group Trust's investor presentation, November 2015

  1. Slide 1: Investor Update November 2015

    INVESTOR UPDATE Livingston Center (Livingston, NJ) November 2015 Chapel Hill (Dallas, TX)

  2. Slide 2: Kite Realty's Strategic Priorities

    KITE REALTY’S STRATEGIC PRIORITIES Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility OPERATIONAL HIGH‐QUALITY PORTFOLIO FINANCIAL EXCELLENCE PORTFOLIO UPGRADE FLEXIBILITY  Long‐standing,  Over 70% ABR  Recent portfolio  Investment grade experienced coming from

  3. Slide 3: Operational Excellence

    OPERATIONAL EXCELLENCE

  4. Slide 4: Top Tier Operating Efficiency

    TOP TIER OPERATING EFFICIENCY Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility Kite efficiency metrics G&A / Revenues (%) are among the best in the industry 9.7% 9.8% 7.0% 7.2% 7.6% 6.2% 6.2% 6.6% 5.1% 5.2% 4.3% WRI FRT KRG ROIC RPT DDR BRX RPAI KIM REG EQY 75.9%

  5. Slide 5: Historical NOI Growth Outperforms Sector

    HISTORICAL NOI GROWTH OUTPERFORMS SECTOR Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility Same‐Property NOI Growth (%) 5.0 4.9% 4.9% 4.8% 4.7% 4.7% 4.4% 4.4% 4.4% KRG Historical 4.0 avg. 4.4% 3.7% Peer avg.⁽¹⁾ 3.1% 3.0 ~3.2% 2.0 1.0 0.0 1. Peers include AKR, BRX,

  6. Slide 6: High-Quality Portfolio

    HIGH‐QUALITY PORTFOLIO

  7. Slide 7: High-Quality Portfolio Improves Further

    HIGH‐QUALITY PORTFOLIO IMPROVES FURTHER Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility Summary Retail Property Statistics (1) Retail Diversification By ABR (1) Number of Properties 113 By Property Type Number of States 22 67% Of Assets Anchored With A Grocery T

  8. Slide 8: Over 70% of ABR from Top 50 MSAs

    OVER 70% OF ABR FROM TOP 50 MSAs Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility Regional Approach Proves Impactful As Majority Of Portfolio Income From Top Markets 77% of the Midwest’s ABR 94% of the West’s from Top 50 MSA ABR from Top 50 MSA 92% of TX/OK’s 82%

  9. Slide 9: Diverse, High-Quality Revenue Stream

    DIVERSE, HIGH‐QUALITY REVENUE STREAM Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility Top Tenants By ABR # Stores % ABR INVESTMENT GRADE RATED TOP TENANTS HIGH‐QUALITY TENANT BASE 1 Publix 18 3.2% 2 TJ Maxx 21 2.4% 3 PetSmart 18 2.1% 4 Bed Bath & Beyond 17 2.0% 5

  10. Slide 10: In-Process Projects & the 3-R's

    IN‐PROCESS PROJECTS & THE 3‐R’S Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility IN‐PROCESS DEVELOPMENT / REDEVELOPMENT  In‐process projects of $188.8mm  Over 70% funded  Over 90% pre‐leased or committed  Generating ~$11mm in cash net operating income (“NOI”)

  11. Slide 11: Efficient Capital Allocation to Benefit NAV

    EFFICIENT CAPITAL ALLOCATION TO BENEFIT NAV Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility Using free cash flow to fund redevelopment pipeline yields high return on capital and boosts portfolio NAV ~$120mm of 3 ~$50mm in free Portfolio R’s; with ~10% cash flow

  12. Slide 12: Portfolio Upgrade

    PORTFOLIO UPGRADE

  13. Slide 13: Recap of Transformation and 2016 Outlook

    RECAP OF TRANSFORMATION AND 2016 OUTLOOK Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility ACTIONS TAKEN TO‐DATE OBJECTIVES AND 2016 OUTLOOK  Completed $320mm 15‐asset  Capitalize on market and cap rate disposition in December 2014 and environment March 2015  O

  14. Slide 14: Strategic Initiative Results

    STRATEGIC INITIATIVE RESULTS Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility 50% Improvement In ABR per SF More Than 300% Growth In Population $19.71 251K 50% Increase >300% Increase $13.02 61K Dispositions Acquisitions Dispositions Acquisitions 45% Increase In

  15. Slide 15: Balance Sheet

    BALANCE SHEET

  16. Slide 16: Strong Balance Sheet & Capital Position

    STRONG BALANCE SHEET & CAPITAL POSITION Operational Excellence High‐Quality Portfolio Portfolio Upgrade Financial Flexibility BALANCE SHEET INITIATIVES NET DEBT + PREFERRED / EBITDA 3X LOWER 9.7x  Maintain investment grade balance 8.6x sheet with continued improvement Floating rate debt exposure <

  17. Slide 17: Well-Staggered Debt Maturity Profile

    WELL‐STAGGERED DEBT MATURITY PROFILE KRG’s Pro Forma Debt Maturity Schedule (1)(2) ($mm) 700 Executed $200mm term loan due 2022, to be funded in 2016; 600 part of proceeds will be used to unencumber City Center ($90mm due 2022) 500 $446 400 $359 Minimal securitized debt 300 $277 maturing through 202

  18. Slide 18: Key Investor Takeaways from the Kite Team

    KEY INVESTOR TAKEAWAYS FROM THE KITE TEAM Redeeming $102.5mm 8.25% Preferred On Dec. 7, 2015  Lowers average debt cost by ~25 bps; improves financial flexibility Free Cash Flow To Fund Redevelopments  Highest‐returning investment for our growing free cash flow Ongoing Redevelopment Pipeline Of ~$1

  19. Slide 19: Forward-Looking Statements

    FORWARD‐LOOKING STATEMENTS This presentation, 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 statement

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