On this page of StockholderLetter.com we present the latest annual shareholder letter from KITE REALTY GROUP TRUST — ticker symbol KRG. Reading current and past KRG letters to shareholders can bring important insights into the investment thesis.
2023 ANNUAL REPORT
To Our Fellow Shareholders, 2023 was one of the best years in Kite Realty Group Trust s history. During 2023, KRG resoundingly con rmed our operational acumen and the strength of our enterprise. Our relentless commitment to excellence and each other has positioned us at the forefront of the shopping center sector. Our best-in-class operating platform, our durable and exible balance sheet, and the execution of our strategic vision have resulted in KRG generating the best total shareholder return in our sector over the past ve years (12.31.2018 - 12.31.2023). We view this as only the beginning. BEST-IN-CLASS OPERATING PLATFORM Simply de ned, the KRG platform is the proprietary combination of our processes, our properties, and our people with all three coalescing to create the most positive experience possible at our centers for tenants and shoppers, while in turn maximizing value for all our stakeholders. Following a landmark 2022, our team doubled down, challenged ourselves, and delivered another full year of outperformance in 2023. Some notable highlights: Funds From Operations (FFO), as adjusted, per share of $2.03 represented a 5.2% increase year-over-year and an 11-cent increase over our original guidance midpoint. FFO, as adjusted, of the Operating Partnership grew 5.5% to $453.3 million. Same Property Net Operating Income (NOI) increased by 4.8%, 230 basis points higher than the midpoint of our original guidance. Leasing volume reached 4.9 million square feet, an annual best. Annualized base rent (ABR) per square foot improved to $20.70, with ample room for growth evidenced by our 41.3% cash leasing spreads on new leases signed in 2023. We achieved an NOI Margin of 74.5% in 2023, compared to our peer average of 70.6%. Our full year Recovery Ratio reached 85.4%, compared to an average of 76.9% for our peers. 81% of new and non-option leases signed in 2023 included xed rent bumps of at least 3%, and 94% included Fixed CAM, further bolstering our long-term growth pro le. "2023 was one of the best years in Kite Realty Group Trust's history.... We view this as only the beginning." 1 2023 Kite Realty Group Annual Report
kiterealty.com I am incredibly proud of the daily effort and care that our full team puts into our platform, and eager for the continued opportunity to demonstrate how this effort translates to a true point of differentiation. DURABLE & FLEXIBLE BALANCE SHEET One of our greatest advantages is being able to operate KRG from a position of strength and opportunism. For years, our team has placed incredible focus on improving and maintaining a strong balance sheet, allowing us to reach our current position. To encapsulate: In 2018, we held a Net Debt to Adjusted EBITDA of 6.7x. Today, our Net Debt to Adjusted EBITDA sits at 5.1x while we maintain liquidity of over $1.1 billion. In 2023, cash dividends per common share increased 17% year-over-year, to $0.96. In the past eight months the three major credit rating agencies Fitch (BBB/positive outlook), Moody s (Baa2/stable outlook), and S&P (BBB-, positive outlook) have all provided us with either a full rating upgrade or an upgraded outlook. Our nancial prudence not only serves to responsibly safeguard our operations, but also aims to deliver tangible value to our shareholders through consistent and growing dividends. Our forti ed balance sheet and premier operations underscore our nancial acumen, foresight, and capability to navigate a multitude of macro environments while maintaining the ability to act on opportunities that align with our long-term vision. STRATEGIC VISION Kite Realty Group exists to serve as the most compelling, exible, and effective link between retailers and consumers. We are wholly dedicated to creating meaningful experiences and long-term value for our customers, colleagues, communities, and shareholders. Our strategy and collective vision are focused on continuously achieving this goal by setting annual benchmarks to elevate our performance. The constant pursuit of quality and scale in our Sun Belt and Strategic Gateway markets has yielded substantial rewards, a trend we expect to continue as we further re ne our execution. Relationships are critical in our business on many levels, and we strive to be meaningfully woven into the communities in which we operate. 5-YEAR SCORECARD As a result of these efforts, KRG has generated a total shareholder return over the past ve years of 111.4% the highest in our sector. The evolution of key metrics from 2018 to 2023 illustrates a story of intentional progress and focused execution: ABR per Square Foot Net Debt to Adjusted EBITDA 3-Mile Population 3-Mile Household Income Q4 2018 Q4 2023 Delta $16.84 6.7x $20.70 5.1x +23% -1.6x 71k 104k +46% $91k $115k +26% % of ABR from Assets with Grocery Component 71% 79% +8% Leasing Volume (square feet) 1.7M 4.9M +188% $171.2M $453.3M +165% FFO of the Operating Partnership Enterprise Value $2.7B $7.9B +193% Five-Year Total Shareholder Return 30.6% 111.4% +81% 2023 Kite Realty Group Annual Report 2
At KRG, we strive to be... F O C U S E D My sincere thanks to our KRG team, our Board of Trustees, our tenants, our shoppers, and our shareholders for your continued trust and support. It is an incredible honor to lead our team. orwardthinking We are curious, we prize innovation, and we welcome change ptimistic We begin with a positive attitude, and while we assume the best, we prepare for the worst ollaborative rgent We are fast and persistent, but not at the expense of accuracy ound We are built on a stable foundation and we make judgments in a measured and thoughtful way mpowered We are independent thinkers with con dence to take the initiative and solve problems edicated We refuse to lose, we will grind till the end, and we are never complacent As we advance into 2024, we acknowledge the macro uncertainty that exists, but our solid foundation allows us to remain keenly focused on outperforming in every category under our control. Our business is long-term, and through many macro environments our team has consistently achieved success by blocking out external noise, relentlessly pursuing our collective goals, and challenging each other to improve. To give the investor community a close-up look at our portfolio quality and operational excellence, we created Four in 24 a series of four unique and interactive events hosted throughout the year in key KRG markets, with each installment placing a focus on a particular aspect of our operating platform. Leasing space will continue to be the most effective way to allocate capital in 2024, with substantial lease-up opportunities on the horizon and our current signed-not-open pipeline sitting at $31 million. Our core competency is our competitive advantage in 2024 leasing to new and vibrant tenants in our shopping centers offers the best risk-adjusted return. And while we do what we do best, we are positioning and preparing ourselves for future external growth. As we move forward, we are collectively locked in on our team, our customers, and our communities. We nd ourselves at the relative outset of what we can achieve, while fully knowing we can push ourselves to greater heights. As our internal mantra states One Team. One Focus. Regarding our team, it s imperative we acknowledge and honor the legacies of William (Bill) Bindley and Gerald (Gerry) Gorski, two of our trustees who are retiring this year. Bill, serving as our lead independent trustee since our IPO in 2004, has been an invaluable bedrock of our strategic vision and growth. Gerry, previously chairman at RPAI, seamlessly joined our fold following our merger in 2021 and has offered indispensable insights that have propelled us forward. Their wisdom, leadership, and unwavering dedication have profoundly shaped KRG. I, along with our entire organization, offer a heartfelt thank you for their irreplaceable contributions and guidance. On a personal note, I want to express my deep gratitude to Bill, who has been an exemplary role model, mentor, and an endless source of wisdom and encouragement to me for decades I would not be the person or professional I am today without his incredible guidance. As we bid a bittersweet farewell to these great leaders, we remain inspired by their contributions and committed to our shared values. My sincere thanks to our KRG team, our Board of Trustees, our tenants, our shoppers, and our shareholders for your continued trust and support. It is an incredible honor to lead our team. JOHN A. KITE Chairman & Chief Executive Officer 3 2023 Kite Realty Group Annual Report
COMPANY HIGHLIGHTS Financial Data ($ in millions) Year Ended December 31 2021 2022 2023 Total Revenue $373.3 $802.0 $823.0 FFO of the Operating Partnership, as adjusted $171.2 $429.6 $453.3 $1.50 $1.93 $2.03 6.0x 5.2x 5.1x $0.68 $0.82 $0.96 93.3% 94.4% 93.7% FFO per Wtd. Avg. Diluted Common Share, as adjusted Net Debt to adjusted EBITDA Cash Dividend per Common Share Operating Properties Leased Percentage EFFICIENT OPERATING PLATFORM Retail NOI Margin 74.3% Retail Recovery Ratio 87.0% KRG 4Q'22 KRG 4Q'23 14.3% Peer Average 4Q'23 1. 2. 79% of ABR from assets with a grocery component 76.6% Blended Cash Spreads (TTM) 12.0% 92.2% 76.5% 70.3% Peer Average 4Q'23 KEY METRICS Peer Average 4Q'23 KRG 4Q'23 KRG 4Q'23 $20.70 G&A as a % of Total Revenue Peer Average FY 2023 6.8% 6.8% KRG FY 2022 KRG FY 2023 2020 18.42 2021 19.36 2022 20.02 2023 20.70 68% Recovery Ratios are computed by dividing tenant reimbursements by the sum of recoverable operating expense and real estate tax expense. Tenant reimbursements for the three months ended December 31, 2022 have been reduced by $1.4 million due to reserves for Bed Bath & Beyond Inc. real estate tax reimbursements. Based on ABR. Sun Belt states include AL, AR, AZ, CA, CO, FL, GA, KY, LA, MS, NC, NM, NV,OK, SC, TN, TX, UT and VA. Note: Peer group includes AKR, BRX, FRT, KIM, PECO, REG, and ROIC. Source of all peer data is from 4Q 2023 supplemental disclosures, except AKR and ROIC data is from 3Q 2023 supplemental disclosures. 2023 Kite Realty Group Annual Report Annualized Base Rent KRG ALL-TIME HIGH 2019 17.83 7.9% 12.6% KRG 4Q'22 KRG 4Q'22 Sun Belt Exposure 2 component 5.1x Net Debt / EBITDA 2020 7.0x 2021 6.0x 2022 5.2x 2023 5.1x 4
 • shareholder letter icon 4/16/2024 Letter Continued (Full PDF)
 • stockholder letter icon 3/27/2023 KRG Stockholder Letter
 • stockholder letter icon More "REITs" Category Stockholder Letters
 • Benford's Law Stocks icon KRG Benford's Law Stock Score = 91


KRG Shareholder/Stockholder Letter Transcript:

2023
ANNUAL REPORT

To Our Fellow Shareholders,
2023 was one of the best years in Kite Realty Group Trust   s history.
During 2023, KRG resoundingly con   rmed our operational acumen and the strength of our enterprise. Our relentless
commitment to excellence and each other has positioned us at the forefront of the shopping center sector. Our best-in-class
operating platform, our durable and    exible balance sheet, and the execution of our strategic vision have resulted in KRG generating
the best total shareholder return in our sector over the past    ve years (12.31.2018 - 12.31.2023).
We view this as only the beginning.
BEST-IN-CLASS OPERATING PLATFORM
Simply de   ned, the KRG platform is the proprietary combination of our processes, our properties, and our people     with all
three coalescing to create the most positive experience possible at our centers for tenants and shoppers, while in turn maximizing
value for all our stakeholders.
Following a landmark 2022, our team doubled down, challenged ourselves, and delivered another full year of outperformance in 2023.
Some notable highlights:
    Funds From Operations (FFO), as adjusted, per share of $2.03 represented a 5.2% increase year-over-year and an 11-cent
increase over our original guidance midpoint.
    FFO, as adjusted, of the Operating Partnership grew 5.5% to $453.3 million.
    Same Property Net Operating Income (NOI) increased by 4.8%, 230 basis points higher than the midpoint of our original guidance.
    Leasing volume reached 4.9 million square feet, an annual best.
    Annualized base rent (ABR) per square foot improved to $20.70, with ample room for growth evidenced by our 41.3% cash leasing
spreads on new leases signed in 2023.
    We achieved an NOI Margin of 74.5% in 2023, compared to our peer average of 70.6%.
    Our full year Recovery Ratio reached 85.4%, compared to an average of 76.9% for our peers.
    81% of new and non-option leases signed in 2023 included    xed rent bumps of at least 3%, and 94% included Fixed CAM,
further bolstering our long-term growth pro   le.
"2023 was one of the best
years in Kite Realty Group
Trust's history.... We view
this as only the beginning."
1
2023 Kite Realty Group Annual Report

kiterealty.com
I am incredibly proud of the daily effort and care that our full team puts into our
platform, and eager for the continued opportunity to demonstrate how this effort
translates to a true point of differentiation.
DURABLE & FLEXIBLE BALANCE SHEET
One of our greatest advantages is being able to operate KRG from a position of strength
and opportunism. For years, our team has placed incredible focus on improving and
maintaining a strong balance sheet, allowing us to reach our current position.
To encapsulate:
    In 2018, we held a Net Debt to Adjusted EBITDA of 6.7x. Today, our Net Debt to
Adjusted EBITDA sits at 5.1x while we maintain liquidity of over $1.1 billion.
    In 2023, cash dividends per common share increased 17% year-over-year, to $0.96.
    In the past eight months the three major credit rating agencies     Fitch
(BBB/positive outlook), Moody   s (Baa2/stable outlook), and S&P (BBB-, positive
outlook)     have all provided us with either a full rating upgrade or an upgraded
outlook.
Our    nancial prudence not only serves to responsibly safeguard our operations, but
also aims to deliver tangible value to our shareholders through consistent and
growing dividends. Our forti   ed balance sheet and premier operations underscore
our    nancial acumen, foresight, and capability to navigate a multitude of macro
environments while maintaining the ability to act on opportunities that align with
our long-term vision.
STRATEGIC VISION
Kite Realty Group exists to serve as the most compelling,    exible, and effective link
between retailers and consumers. We are wholly dedicated to creating meaningful
experiences and long-term value for our customers, colleagues, communities, and
shareholders. Our strategy and collective vision are focused on continuously achieving
this goal by setting annual benchmarks to elevate our performance.
The constant pursuit of quality and scale in our Sun Belt and Strategic Gateway markets
has yielded substantial rewards, a trend we expect to continue as we further re   ne our
execution. Relationships are critical in our business on many levels, and we strive to be
meaningfully woven into the communities in which we operate.
5-YEAR SCORECARD
As a result of these efforts, KRG has generated a total shareholder return over
the past    ve years of 111.4%     the highest in our sector. The evolution of key
metrics from 2018 to 2023 illustrates a story of intentional progress and focused
execution:
ABR per Square Foot
Net Debt to Adjusted EBITDA
3-Mile Population
3-Mile Household Income
Q4 2018
Q4 2023
Delta
$16.84
6.7x
$20.70
5.1x
+23%
-1.6x
71k
104k
+46%
$91k
$115k
+26%
% of ABR from Assets with Grocery Component
71%
79%
+8%
Leasing Volume (square feet)
1.7M
4.9M
+188%
$171.2M
$453.3M
+165%
FFO of the Operating Partnership
Enterprise Value
$2.7B
$7.9B
+193%
Five-Year Total Shareholder Return
30.6%
111.4%
+81%
2023 Kite Realty Group Annual Report
2

At KRG, we strive to be...
F
O
C
U
S
E
D
   My sincere thanks
to our KRG team,
our Board of Trustees,
our tenants, our
shoppers, and our
shareholders for
your continued trust
and support. It is an
incredible honor to
lead our team.   
orwardthinking
We are curious, we prize innovation, and we welcome
change
ptimistic
We begin with a positive attitude, and while we assume
the best, we prepare for the worst
ollaborative
rgent
We are fast and persistent, but not at the expense of
accuracy
ound
We are built on a stable foundation and we make
judgments in a measured and thoughtful way
mpowered
We are independent thinkers with con   dence to take the
initiative and solve problems
edicated
We refuse to lose, we will grind till the end, and we are
never complacent
As we advance into 2024, we acknowledge the macro uncertainty that exists, but our
solid foundation allows us to remain keenly focused on outperforming in every
category under our control. Our business is long-term, and through many macro
environments our team has consistently achieved success by blocking out external noise,
relentlessly pursuing our collective goals, and challenging each other to improve.
To give the investor community a close-up look at our portfolio quality and operational
excellence, we created    Four in    24        a series of four unique and interactive events
hosted throughout the year in key KRG markets, with each installment placing a focus on
a particular aspect of our operating platform.
Leasing space will continue to be the most effective way to allocate capital in 2024, with
substantial lease-up opportunities on the horizon and our current signed-not-open
pipeline sitting at $31 million. Our core competency is our competitive advantage in
2024     leasing to new and vibrant tenants in our shopping centers offers the best
risk-adjusted return. And while we do what we do best, we are positioning and preparing
ourselves for future external growth.
As we move forward, we are collectively locked in on our team, our customers, and our
communities. We    nd ourselves at the relative outset of what we can achieve, while
fully knowing we can push ourselves to greater heights. As our internal mantra states    
One Team. One Focus.
Regarding our team, it   s imperative we acknowledge and honor the legacies of William (Bill)
Bindley and Gerald (Gerry) Gorski, two of our trustees who are retiring this year. Bill, serving
as our lead independent trustee since our IPO in 2004, has been an invaluable bedrock of our
strategic vision and growth. Gerry, previously chairman at RPAI, seamlessly joined our fold
following our merger in 2021 and has offered indispensable insights that have propelled
us forward. Their wisdom, leadership, and unwavering dedication have profoundly shaped
KRG. I, along with our entire organization, offer a heartfelt thank you for their irreplaceable
contributions and guidance. On a personal note, I want to express my deep gratitude to Bill,
who has been an exemplary role model, mentor, and an endless source of wisdom and
encouragement to me for decades     I would not be the person or professional I am today
without his incredible guidance. As we bid a bittersweet farewell to these great leaders,
we remain inspired by their contributions and committed to our shared values.
My sincere thanks to our KRG team, our Board of Trustees, our tenants, our shoppers,
and our shareholders for your continued trust and support. It is an incredible honor to
lead our team.
JOHN A. KITE
Chairman & Chief Executive Officer
3
2023 Kite Realty Group Annual Report

COMPANY HIGHLIGHTS
Financial Data ($ in millions)
Year Ended December 31
2021
2022
2023
Total Revenue
$373.3
$802.0
$823.0
FFO of the Operating Partnership, as adjusted
$171.2
$429.6
$453.3
$1.50
$1.93
$2.03
6.0x
5.2x
5.1x
$0.68
$0.82
$0.96
93.3%
94.4%
93.7%
FFO per Wtd. Avg. Diluted Common Share, as adjusted
Net Debt to adjusted EBITDA
Cash Dividend per Common Share
Operating Properties Leased Percentage
EFFICIENT OPERATING PLATFORM
Retail NOI Margin
74.3%
Retail Recovery Ratio  
87.0%
KRG
4Q'22
KRG
4Q'23
14.3%
Peer
Average
4Q'23
1.
2.
79%
of ABR from assets with
a grocery component
76.6%
Blended Cash Spreads (TTM)
12.0%
92.2%
76.5%
70.3%
Peer
Average
4Q'23
KEY METRICS
Peer
Average
4Q'23
KRG
4Q'23
KRG
4Q'23
$20.70
G&A as a % of Total Revenue
Peer
Average
FY 2023
6.8%
6.8%
KRG
FY 2022
KRG
FY 2023
2020 18.42
2021 19.36
2022 20.02
2023 20.70
68%
   Recovery Ratios    are computed by dividing tenant reimbursements by the sum of
recoverable operating expense and real estate tax expense. Tenant reimbursements for
the three months ended December 31, 2022 have been reduced by $1.4 million due to
reserves for Bed Bath & Beyond Inc. real estate tax reimbursements.
Based on ABR. Sun Belt states include AL, AR, AZ, CA, CO, FL, GA, KY, LA, MS, NC, NM,
NV,OK, SC, TN, TX, UT and VA.
Note: Peer group includes AKR, BRX, FRT, KIM, PECO, REG, and ROIC. Source of all peer data
is from 4Q 2023 supplemental disclosures, except AKR and ROIC data is from 3Q 2023
supplemental disclosures.
2023 Kite Realty Group Annual Report
Annualized Base Rent
KRG ALL-TIME HIGH
2019 17.83
7.9%
12.6%
KRG
4Q'22
KRG
4Q'22
Sun Belt Exposure 2
component
5.1x
Net Debt / EBITDA
2020
7.0x
2021
6.0x
2022
5.2x
2023
5.1x
4



shareholder letter icon 4/16/2024 Letter Continued (Full PDF)
 

KRG Stockholder/Shareholder Letter (KITE REALTY GROUP TRUST) | www.StockholderLetter.com
Copyright © 2023 - 2025, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.