Attached files
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| 8-K - FORM 8-K INVESTOR PRESENTATION 3/14/11 - KITE REALTY GROUP TRUST | form8k031411.htm |
Kite Realty Group Trust
Investor Presentation
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COMPANY OVERVIEW
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§ Stable Operating Portfolio
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§ 61 Properties in 9 states
§ 53 Properties in the Retail Operating Portfolio; 92.2% leased
§ Diverse tenant base: Largest tenant represents only 3.2% of annualized base rent
§ 5 mile demographics: Population 127,000; Average HHI $86,000
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§ Increased Leasing Productivity
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§ Over 1.1 million square feet of leasing production in 2010 - the highest level in company history
§ Retail Operating Portfolio leased percentage increased 220 basis points since Q1 2010
§ Increased shop leased percentage 270 basis points since Q1 2010
§ 34 new and renewal anchor leases for 1.1 million square feet completed since Q1 2009
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§ Development & Redevelopment
Progress |
§ Completed Eddy Street Commons development and Coral Springs Plaza redevelopment and
transitioned them to the operating portfolio § Commenced construction on Whole Foods at Cobblestone Plaza in Pembroke Pines, Florida as
well as the South Elgin Commons II project in Chicago, Illinois § Rivers Edge redevelopment in Indianapolis is under construction and 95% pre-leased including
anchors Nordstrom Rack, The Container Store, BuyBuy Baby, Arhaus Furniture, and BGI Fitness |
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§ Earnings Upside
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§ $4.5 million of annualized EBITDA from recently executed leases anticipated to
commence by the end of 2011 |
Information as of December 31, 2010
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GROWTH SOURCES
§ Rent commencement on executed Jr anchor leases
§ $4.5 million in annualized rent and recoveries anticipated to commence by the end of 2011
§ Increase small shop occupancy
§ From current 78% to historical 85%
§ Execute on redevelopments
§ Rivers Edge in Indianapolis, IN is 95% leased and under construction
§ In discussions with replacement anchor tenants for the balance of the former Wal-Mart at
Bolton Plaza in Jacksonville, FL
Bolton Plaza in Jacksonville, FL
§ Complete tenant construction and interior build-outs at Cobblestone Plaza
§ With Whole Foods under construction, Cobblestone Plaza in Pembroke Pines, FL is 84%
leased but only 34% occupied
leased but only 34% occupied
§ Future development potential
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§ We have been successful in improving the quality and predictability of our
FFO stream.
FFO stream.
Recurring Real Estate Income as a Percent of FFO
(1) 2011 projection is based on the Company’s previously released earnings guidance.
IMPROVING FFO QUALITY
(1)
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§ Leasing production is a constant company-wide focus
§ Leased 1.1 million square feet during 2010, the highest level of production in company
history and a 64% increase over 2009 levels
history and a 64% increase over 2009 levels
§ 34 new and renewal anchor leases for 1.1 million square feet completed since Q1 2009
Total Leasing Production - New and Renewal Leases
LEASING PRODUCTION
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DIVERSE TENANT BASE
(1) Annualized base rent represents the monthly contractual rent for December 2010 for each applicable tenant multiplied by 12.
(2) S&P credit ratings for parent company as of 2/28/2011.
(3) Rating from Moody's, S&P does not rate Toys R Us
§ Largest single retail tenant comprises only 3.2% of total annualized base rent
§ Top 10 retail tenants account for only 22.0% of total annualized base rent
Information as of December 31, 2010
(unless otherwise noted)
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DIVERSE TENANT BASE
Peer Group Assessment:
Top Tenant as a Percent of Annualized Base Rent
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Kroger
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Bed Bath
Beyond |
Home
Depot |
Publix
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TJ Maxx
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Wal-Mart/
Sam’s |
Kroger
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A&P
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Supervalu
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Publix
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Giant
Foods |
Source: Company SEC filings.
Information as of December 31, 2010
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STRONG DEMOGRAPHICS
Source: Applied Geographic Solutions.
§ High quality assets with an average age including redevelopment of less
than 9 years
than 9 years
§ Approximately half of the current portfolio was developed by KRG
§ Portfolio benefits from 100% non-owned anchor occupancy
Portfolio Demographics Summary
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STRONG DEMOGRAPHICS
Source: Applied Geographic Solutions.
§ We have a history of selecting strong markets for investment
§ Incomes in our Florida, Texas and Indiana portfolio incomes are significantly higher
than statewide levels
than statewide levels
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WELL-STAGGERED LEASE EXPIRATIONS
(1) Lease expirations of operating portfolio and excludes option periods and ground leases. Annualized base rent represents the monthly contractual rent
for December 2010 for each applicable property multiplied by 12.
for December 2010 for each applicable property multiplied by 12.
§ Average 8.2% of annualized base rent is expected to roll each year from 2011
through 2020
through 2020
§ With the exception of 2015, our annual exposure to expirations is limited to
approximately 10.5% or less
approximately 10.5% or less
Information as of December 31, 2010
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IN-PROCESS DEVELOPMENT STATUS
§ Cobblestone Plaza, Ft. Lauderdale, FL
§ 133,000 sf owned GLA
§ 84% pre-leased or committed with Whole Foods executed lease
§ 90% of projected costs incurred
§ Construction of Whole Foods underway with tenant anticipated
to take possession in the second half of 2011
to take possession in the second half of 2011
Information as of December 31, 2010
§ South Elgin Commons, Chicago, IL
§ 128,000 sf owned GLA
§ Phase II 100% pre-leased
§ Construction commenced
§ Ross Stores and Toys R Us will join LA Fitness (open and
operating in Phase I) as anchor tenants
operating in Phase I) as anchor tenants
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RIVERS EDGE REDEVELOPMENT
BEFORE
AFTER
BEFORE
§ Vertical construction
commenced in Q4 2010 at 95%
pre-leased.
commenced in Q4 2010 at 95%
pre-leased.
§ Anchor leases are executed with
Nordstrom Rack, Buy Buy Baby,
The Container Store, Arhaus
Furniture, and BGI Fitness.
Nordstrom Rack, Buy Buy Baby,
The Container Store, Arhaus
Furniture, and BGI Fitness.
§ Secured construction financing
with a 5-year term at LIBOR +
325 bps.
with a 5-year term at LIBOR +
325 bps.
§ Select rent commencements
anticipated for the second half of
2011.
anticipated for the second half of
2011.
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BOLTON PLAZA REDEVELOPMENT
BEFORE
AFTER
§ The former Wal-Mart box was
partially converted into a 65,000
square foot Academy Sports.
partially converted into a 65,000
square foot Academy Sports.
§ Academy Sports opened for
business in September of 2010.
business in September of 2010.
§ In discussions with potential
retailers for space in the
remainder of the former Wal-
Mart box.
retailers for space in the
remainder of the former Wal-
Mart box.
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EDDY STREET COMMONS AT NOTRE DAME
§ Substantially completed and
transitioned to the operating
portfolio.
transitioned to the operating
portfolio.
§ 88,000 square feet of retail, 85%
leased following the execution of
a lease with Urban Outfitters.
leased following the execution of
a lease with Urban Outfitters.
§ In late stage negotiations with a
tenant to reach approximately
95% leased.
tenant to reach approximately
95% leased.
§ 82,000 square feet of office at
91% leased.
91% leased.
§ Air rights lease with owner of the
apartment component provides
consistent rental stream.
apartment component provides
consistent rental stream.
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CORAL SPRINGS REDEVELOPMENT
BEFORE
§ The vacant Circuit City box was
expanded to 46,747 SF and
leased to Toys R Us/Babies R
Us.
expanded to 46,747 SF and
leased to Toys R Us/Babies R
Us.
§ Completed and transitioned to
the operating portfolio.
the operating portfolio.
§ Store opened November 2010.
AFTER
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Scheduled Debt Maturities (1)
MANAGING LEVERAGE
(1) Dollars in thousands. Maturities exclude annual principal amortization. Includes subsequent events.
§ Including subsequent events, approximately 50% of 2011 maturities have been satisfied since Q3
2010
2010
§ Nearly all 2011 maturities and approximately 86% of maturities through 2012 are held on balance
sheet by relationship banks
sheet by relationship banks
§ Our strategy is to secure long term financing, however 60% of 2011 maturities have extension options
§ In advance discussions with our bank group regarding a 3-year renewal on our line of credit
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(1) Dollars in thousands.
(2) Net of partner’s share of consolidated debt.
§ In Q4 2010, the Company issued 2.8 million shares of preferred shares
§ Net proceeds of approximately $67.5 million
§ Paid off $55 million unsecured term loan with 2011 maturity date
§ $4.5 million of annualized EBITDA from recently executed leases anticipated
to commence by the end of 2011
to commence by the end of 2011
IMPROVING DEBT/EBITDA
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DISCLAIMER
This presentation contains certain statements that are not historical fact and may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-
looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results of the Company to differ materially from historical results or from any results expressed or
implied by such forward-looking statements, including, without limitation: national and local economic,
business, real estate and other market conditions, particularly in light of the current challenging economic
conditions; financing risks, including the availability of and costs associated with sources of liquidity; the
Company’s ability to refinance, or extend the maturity dates of, its indebtedness; the level and volatility of
interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant
bankruptcies; the competitive environment in which the Company operates; acquisition, disposition,
development and joint venture risks; property ownership and management risks; the Company’s ability to
maintain its status as a real estate investment trust (“REIT”) for federal income tax purposes; potential
environmental and other liabilities; impairment in the value of real estate property the Company owns; risks
related to the geographical concentration of our properties in Indiana, Florida and Texas; assumptions
underlying our anticipated growth sources; and other factors affecting the real estate industry generally.
The Company refers you the documents filed by the Company from time to time with the Securities and
Exchange Commission, specifically the section titled “Business Risk Factors” in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2009, which discuss these and other factors that
could adversely affect the Company’s results. The Company undertakes no obligation to publicly update
or revise these forward-looking statements (including the FFO and net income estimates), whether as a
result of new information, future events or otherwise.
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-
looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results of the Company to differ materially from historical results or from any results expressed or
implied by such forward-looking statements, including, without limitation: national and local economic,
business, real estate and other market conditions, particularly in light of the current challenging economic
conditions; financing risks, including the availability of and costs associated with sources of liquidity; the
Company’s ability to refinance, or extend the maturity dates of, its indebtedness; the level and volatility of
interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant
bankruptcies; the competitive environment in which the Company operates; acquisition, disposition,
development and joint venture risks; property ownership and management risks; the Company’s ability to
maintain its status as a real estate investment trust (“REIT”) for federal income tax purposes; potential
environmental and other liabilities; impairment in the value of real estate property the Company owns; risks
related to the geographical concentration of our properties in Indiana, Florida and Texas; assumptions
underlying our anticipated growth sources; and other factors affecting the real estate industry generally.
The Company refers you the documents filed by the Company from time to time with the Securities and
Exchange Commission, specifically the section titled “Business Risk Factors” in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2009, which discuss these and other factors that
could adversely affect the Company’s results. The Company undertakes no obligation to publicly update
or revise these forward-looking statements (including the FFO and net income estimates), whether as a
result of new information, future events or otherwise.