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Sep 30, 2023

Kite Realty Q3 2023 Earnings Report

Kite Realty reported operating results for the third quarter ended September 30, 2023.

Key Takeaways

Kite Realty Group Trust reported a net income attributable to common shareholders of $2.1 million, or $0.01 per diluted share, compared to a net loss of $7.8 million, or $0.04 per diluted share for the same quarter last year. Same Property NOI increased by 4.7%. The company raised its 2023 NAREIT FFO guidance range to $1.99 to $2.03 per diluted share.

Leased approximately 1.4 million square feet at 14.2% comparable blended cash leasing spreads

Same Property NOI increased by 4.7% on a year-over-year basis

Acquired Prestonwood Place (Dallas, TX) for $81.0 million

Received a ‘Positive’ credit rating outlook upgrade from S&P Global Ratings

Total Revenue
$207M
Previous year: $200M
+3.4%
EPS
$0.51
Previous year: $0.48
+6.3%
Same Property NOI Growth
4.7%
Previous year: 4.4%
+6.8%
Gross Profit
$159M
Previous year: $149M
+6.7%
Cash and Equivalents
$58.3M
Previous year: $88.4M
-34.1%
Total Assets
$7.05B
Previous year: $7.4B
-4.7%

Kite Realty

Kite Realty

Kite Realty Revenue by Segment

Forward Guidance

The Company expects to generate net income attributable to common shareholders of $0.19 to $0.23 per diluted share in 2023. The Company is raising its 2023 NAREIT FFO guidance range to $1.99 to $2.03 per diluted share from $1.96 to $2.00 per diluted share, based, in part, on the following key assumptions at the midpoint: â–ª2023 Same Property NOI growth of 4.5%, which represents a 100-basis point increase. â–ªBad debt reserves of 45 basis points of total revenues for the full calendar year of 2023. â–ªBad debt reserves of 75 basis points of total revenues for the fourth quarter of 2023.

Positive Outlook

  • 2023 Same Property NOI growth of 4.5%, which represents a 100-basis point increase.

Challenges Ahead

  • Bad debt reserves of 75 basis points of total revenues for the fourth quarter of 2023.
  • Bad debt reserves of 45 basis points of total revenues for the full calendar year of 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income