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Jun 30, 2023

Kite Realty Q2 2023 Earnings Report

Kite Realty reported operating results, featuring increased net income and same property NOI, along with raised 2023 guidance.

Key Takeaways

Kite Realty Group Trust reported strong second-quarter results, marked by a significant increase in net income attributable to common shareholders, a notable rise in same property NOI, and the leasing of over 1.3 million square feet. The company also lowered its leverage to an all-time low and raised its 2023 NAREIT FFO guidance range.

Net income attributable to common shareholders increased to $32.1 million, or $0.15 per diluted share.

Same Property NOI increased by 5.7%.

Leased over 1.3 million square feet at 14.8% comparable blended cash leasing spreads.

Leverage lowered to 5.0x, an all-time low for KRG.

Total Revenue
$209M
Previous year: $203M
+3.0%
EPS
$0.51
Previous year: $0.49
+4.1%
Same Property NOI Growth
5.7%
Previous year: 3.8%
+50.0%
Gross Profit
$155M
Previous year: $149M
+4.2%
Cash and Equivalents
$129M
Previous year: $90.8M
+42.4%
Total Assets
$7.17B
Previous year: $7.38B
-3.0%

Kite Realty

Kite Realty

Kite Realty Revenue by Segment

Forward Guidance

The Company expects to generate net income attributable to common shareholders of $0.21 to $0.25 per diluted share in 2023. The Company is raising its 2023 NAREIT FFO guidance range to $1.96 to $2.00 per diluted share from $1.92 to $1.98 per diluted share.

Positive Outlook

  • 2023 same property NOI range of 3.0% to 4.0%, which represents a 75-basis point increase at the midpoint.
  • Bad debt reserves of 1.25% of total revenues for the remainder of 2023.
  • Company expects to generate net income attributable to common shareholders of $0.21 to $0.25 per diluted share in 2023.
  • The Company is raising its 2023 NAREIT FFO guidance range to $1.96 to $2.00 per diluted share from $1.92 to $1.98 per diluted share.
  • Assumes no additional revenue from Bed Bath & Beyond Inc.

Revenue & Expenses

Visualization of income flow from segment revenue to net income