Kite Realty Group Trust (KRG) investor relations material

Strategic focus and portfolio management

• Owns 170 open-air shopping centers in 24 states, with a focus on the Sun Belt, especially Florida and Texas, and 80% of ABR from grocery-anchored properties.

• Achieved 95% leased rate and increased average base rent to $23, reflecting strong operational performance.

• Reduced exposure to lower-growth power centers by 400-500 basis points over the past year, pivoting toward higher-growth assets.

• Executed $300 million in accretive stock buybacks and continues to prioritize portfolio repositioning for growth.

• Maintains a clear strategy focused on growth, execution, value, and a strong balance sheet.

Balance sheet discipline and capital allocation

• Operates with leverage below 5.5x EBITDA, emphasizing flexibility and risk management, but open to temporarily exceeding this for compelling opportunities.

• Prefers methodical, phased asset sales and buybacks, ensuring proceeds are deployed accretively or minimally dilutive.

• Market for retail assets remains liquid, with strong demand and favorable pricing, supporting ongoing recycling strategy.

• Buybacks are evaluated based on FFO yield and cap rates, with ongoing analysis as stock price changes.

• No significant impact on liquidity or index weighting from current buyback activity; enterprise value has increased.

Growth drivers and operational efficiency

• Growth in same-store NOI driven by escalators, conversion to fixed CAM leases, and specialty leasing opportunities.

• Targeting 4% rent bumps for small shops and aiming to increase escalators to 2% for higher baseline growth.

• Asset recycling has improved same-store NOI by removing lower-growth properties.

• Maintains high operating efficiency, with G&A to revenue and NOI margins at the top of the peer group.

• Focused on long-term portfolio growth rather than short-term earnings acceleration.