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Mar 31, 2023

Kite Realty Q1 2023 Earnings Report

Reported operating results for the first quarter ended March 31, 2023.

Key Takeaways

Kite Realty Group Trust reported a net income attributable to common shareholders of $5.4 million, or $0.02 per diluted share, for the quarter ended March 31, 2023, compared to a net loss of $16.8 million, or $0.08 per diluted share, for the same period in 2022. The company raised its 2023 NAREIT FFO guidance and experienced a 6.5% increase in Same Property NOI year-over-year.

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.

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.

Total Revenue
$207M
Previous year: $194M
+6.4%
EPS
$0.51
Previous year: $0.46
+10.9%
Same Property NOI Growth
6.5%
Previous year: 5.9%
+10.2%
Retail Leased Percentage
94.8%
Previous year: 93.6%
+1.3%
Annualized Base Rent
$20
Gross Profit
$152M
Previous year: $142M
+7.5%
Cash and Equivalents
$43.7M
Previous year: $74.3M
-41.2%
Total Assets
$7.2B
Previous year: $7.57B
-5.0%

Kite Realty

Kite Realty

Kite Realty Revenue by Segment

Forward 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.

Positive Outlook

  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income