Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K 11/15/11 - KITE REALTY GROUP TRUST | form8k_111511.htm |
Investors and Analyst
PRESENTED TO:
11.2011
KITE HEADQUARTERS Indianapolis, IN
KITE REALTY GROUP
2
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 “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2010, 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.
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 “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2010, 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.
3
COMPANY OVERVIEW
|
• Stable Operating Portfolio
|
• 63 Properties in 10 states
• 53 Properties in the Retail Operating Portfolio; 93.1% leased
• Diverse tenant base: Largest tenant represents only 3.2% of annualized base rent
• 5 mile demographics: Population 126,000; Average HHI $85,000
|
|
• Increased Leasing & Operating
Productivity
|
• Over 650,000 square feet of leasing production through September 30, 2011 at
aggregate rent spreads of 6.3%
• 8 consecutive quarters of positive rent spreads
• Same property net income increased 5.0% over the prior year
• Total revenue from property operations increased 8.4% over the prior year
|
|
• Development & Redevelopment
Progress |
• A groundbreaking is planned for early December 2011 at Delray Marketplace in Delray
Beach, Florida. • Whole Foods at Cobblestone Plaza in Pembroke Pines, Florida and Whole Foods at
Oleander Point in Wilmington, North Carolina are under construction. • South Elgin Commons in Chicago, Illinois became fully operational.
• Nordstrom Rack, The Container Store, and buybuy Baby have opened at Rivers Edge
redevelopment in Indianapolis. Construction continues for remaining anchors Arhaus Furniture and BGI Fitness. |
|
• Cash NOI Growth Potential
|
• $7.9 million of annualized cash NOI from executed leases
|
Information as of September 30, 2011
LEASING
5
PORTFOLIO SAME STORE NOI TRENDS
KITE REALTY GROUP
6
LEASED PERCENTAGES: RETAIL OPERATING PORTFOLIO
• Total portfolio is currently 93.1% leased.
KITE REALTY GROUP
RENT SPREADS
KITE REALTY GROUP
7
|
|
2011*
|
2010
|
2009
|
|
New Leases
|
8.9%
|
9.8%
|
4.4%
|
|
Renewals
|
2.6%
|
<3.5%>
|
<0.8%>
|
|
Weighted Total
|
6.3%
|
5.1%
|
2.1%
|
Rent Spreads
* Through September 30, 2011
• 8 consecutive quarters of positive aggregate rent spreads
8
• Company-wide focus on leasing the portfolio to high-credit tenants.
• Total annual production
• 2009 - 673,000
• 2010 - 1,100,600
• 2011 - 666,300*
Total Leasing Production - New and Renewal Leases
By Quarter
LEASING - ACTIVITY
* Through September 30, 2011
KITE REALTY GROUP
RETAIL RELATIONSHIPS
New Retail Relationships
• National Retailers: Nordstrom Rack / The Container Store / Arhaus Furniture / Whole Foods /
Fresh Market / Advanced Auto / Babies “R” Us and Toys “R” Us / Ulta / Urban Outfitters /
Vitamin Shoppe / buybuy Baby / Apricot Lane / Bobby Chan / Chico’s / Dollar Tree / Goodwill
/ White House | Black Market / JoS. A. Bank
Fresh Market / Advanced Auto / Babies “R” Us and Toys “R” Us / Ulta / Urban Outfitters /
Vitamin Shoppe / buybuy Baby / Apricot Lane / Bobby Chan / Chico’s / Dollar Tree / Goodwill
/ White House | Black Market / JoS. A. Bank
• Restaurants: BJ’s Brewhouse / Buffalo Wild Wings / Corner Bakery / Jason’s Deli / Pei Wei /
Max’s Grille / Shula Burger / Brother’s Bar & Grill
Max’s Grille / Shula Burger / Brother’s Bar & Grill
KITE REALTY GROUP
9
DIVERSE TENANT BASE
Quality Retail Tenants
KITE REALTY GROUP
10
(1) Annualized base rent represents the monthly contractual rent for September 2011 for each applicable tenant multiplied by 12.
(2) S&P credit ratings for parent company as of 10/24/2011.
DEVELOPMENT
KITE REALTY GROUP
12
COBBLESTONE PLAZA
Pembroke Pines, Florida
Pembroke Pines, Florida
In-Process Development
• The Whole Foods building will be
turned over during the 4th quarter with
an opening expected in Q1, 2012.
turned over during the 4th quarter with
an opening expected in Q1, 2012.
• Construction on the Whole Foods
building has increased awareness of
the center. The project is 95.6%
leased or committed as of September
30, 2011.
building has increased awareness of
the center. The project is 95.6%
leased or committed as of September
30, 2011.
KITE REALTY GROUP
13
OLEANDER SHOPPING CENTER
Wilmington, North Carolina
Wilmington, North Carolina
In-Process Redevelopment
• Oleander Shopping Center,
Wilmington, NC, was acquired by
Kite in February 2011.
Wilmington, NC, was acquired by
Kite in February 2011.
• A 30,000 square foot Whole
Foods will replace the former
Lowes Food Store.
Foods will replace the former
Lowes Food Store.
• Kite commenced construction of
the new Whole Foods during the
3rd quarter with a turnover to the
tenant scheduled before
December 31, 2011.
the new Whole Foods during the
3rd quarter with a turnover to the
tenant scheduled before
December 31, 2011.
KITE REALTY GROUP
14
RIVERS EDGE
Indianapolis, Indiana
Indianapolis, Indiana
In-Process Redevelopment
• The Rivers Edge redevelopment is
proceeding on schedule. New
anchor tenants including
Nordstrom Rack, The Container
Store, and buybuy Baby have
opened.
proceeding on schedule. New
anchor tenants including
Nordstrom Rack, The Container
Store, and buybuy Baby have
opened.
• Phase II of the project is under way
and will include a new 18,000 SF
BGI building and a renovated
space for Arhaus Furniture.
and will include a new 18,000 SF
BGI building and a renovated
space for Arhaus Furniture.
• The center is 100% leased and is
partially operational.
partially operational.
KITE REALTY GROUP
15
DELRAY MARKETPLACE
Delray Beach, Florida
Delray Beach, Florida
In-Process Development
• Received a $62 million construction
loan commitment with an anticipated
November closing.
loan commitment with an anticipated
November closing.
• Official groundbreaking in the first
week of December.
week of December.
• Including anchors Publix and Frank
Theatres, we currently have 23
executed leases. The center is
approximately 66% pre-leased or
committed.
Theatres, we currently have 23
executed leases. The center is
approximately 66% pre-leased or
committed.
KITE REALTY GROUP
16
NEW HILL PLACE
Holly Springs, North Carolina
Holly Springs, North Carolina
Future Development
• Four national junior anchor leases are
executed.
executed.
• Phase I of New Hill Place is scheduled
to commence construction in spring.
to commence construction in spring.
• Construction loan to be finalized prior to
construction commencement.
construction commencement.
BALANCE SHEET
KITE REALTY GROUP
18
DEBT AND CAPITAL MARKETS UPDATE
Primary Debt Capital Market Initiatives
• Manage fixed to floating ratio to a goal of 80/20 (w/construction loan debt).
• Capitalize on low long-term interest rate environment.
• De-levering in process through NOI growth and non-core asset sales.
Significant Debt Transactions
• Closed on $82.0M of secured financing for 10 years at 5.44%. Proceeds were
utilized to payoff loans on Glendale Town Center, Bayport Commons, and Eddy
Street Commons
utilized to payoff loans on Glendale Town Center, Bayport Commons, and Eddy
Street Commons
• Received a $62.0M construction loan commitment to finance the vertical
construction at Delray Marketplace in Delray Beach, Florida
construction at Delray Marketplace in Delray Beach, Florida
• Exercised the one-year extension option on the $20.4 million mortgage on
Gateway Shopping Center.
Gateway Shopping Center.
As a result of these activities, the Company has no remaining 2011 maturities.
KITE REALTY GROUP
19
SCHEDULE OF DEBT MATURITIES
Extend duration of maturities while continuing to stagger debt maturities to mitigate risk.
(1) Line of credit maturity assumes we exercise the one year extension option.
(2) Subsequent to the quarter end, we exercised the one-year extension option.
(2)
(1)
KITE REALTY GROUP
20
NOI GROWTH POTENTIAL THROUGH INCREMENTAL CASH NOI
• NOI growth potential through continued cash rent commencement from
executed leases at operating properties and in-process development and
redevelopment properties.
executed leases at operating properties and in-process development and
redevelopment properties.
• Continue to improve our debt-to-EBITDA level as tenants who have
executed leases take occupancy.
executed leases take occupancy.
Information as of September 30, 2011