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Jun 30, 2024

Kite Realty Q2 2024 Earnings Report

Kite Realty reported a net loss due to an impairment charge, but achieved strong leasing volume and blended cash spreads. The company also raised its 2024 NAREIT FFO and Same Property NOI guidance.

Key Takeaways

Kite Realty Group Trust reported a net loss attributable to common shareholders of $48.6 million, or $0.22 per diluted share, for the second quarter ended June 30, 2024. This loss was driven by a $66.2 million impairment charge. Excluding this charge, net income would have been $17.6 million, or $0.08 per diluted share. The company leased approximately 1.2 million square feet with 15.6% comparable blended cash leasing spreads and increased their dividend by 8.3% year-over-year. They also improved Net Debt to Adjusted EBITDA to 4.8x and received a credit rating upgrade to BBB from S&P Ratings.

Generated NAREIT FFO of the Operating Partnership of $117.5 million, or $0.53 per diluted share.

Same Property NOI increased by 1.8%.

Executed 160 new and renewal leases representing approximately 1.2 million square feet with blended cash leasing spreads of 15.6%.

Retail portfolio leased percentage of 94.8% at June 30, 2024, an 80-basis point increase sequentially.

Total Revenue
$212M
Previous year: $209M
+1.8%
EPS
$0.53
Previous year: $0.51
+3.9%
Same Property NOI Growth
1.8%
Previous year: 5.7%
-68.4%
Retail Leased Percentage
94.8%
Annualized Base Rent
$20.9
Gross Profit
$58.8M
Previous year: $155M
-62.0%
Cash and Equivalents
$154M
Previous year: $129M
+19.0%
Total Assets
$6.96B
Previous year: $7.17B
-2.9%

Kite Realty

Kite Realty

Kite Realty Revenue by Segment

Forward Guidance

The Company now expects to generate net income attributable to common shareholders of $0.00 to $0.04 per diluted share in 2024 and is updating its 2024 NAREIT FFO guidance range to $2.04 to $2.08 per diluted share.

Positive Outlook

  • 2024 Same Property NOI range of 2.0% to 3.0%, which represents a 50-basis point increase at the midpoint.
  • Full-year bad debt assumption of 0.5% to 1.0% of total revenues, which represents a 5-basis point decrease at the midpoint.

Revenue & Expenses

Visualization of income flow from segment revenue to net income