On October 30, 2023, Kite Realty Group Trust (KRG, Financial) released its Q3 2023 operating results. The company reported a net income attributable to common shareholders of $2.1 million, or $0.01 per diluted share, a significant improvement from a net loss of $7.8 million, or $0.04 per diluted share, in the same period last year. For the nine months ended September 30, 2023, net income was $39.5 million, or $0.18 per diluted share, compared to a net loss of $11.5 million, or $0.05 per diluted share, in the same period in 2022.
Financial Highlights
KRG generated NAREIT FFO of the Operating Partnership of $114.7 million, or $0.51 per diluted share. The company executed 214 new and renewal leases representing approximately 1.4 million square feet. The retail portfolio leased percentage was 93.4% at September 30, 2023, a 60-basis point decrease on a year-over-year basis.
The company also acquired Prestonwood Place (Dallas, TX) for $81.0 million and sold Reisterstown Road Plaza (Baltimore, MD) for $48.3 million. As of September 30, 2023, the company's net debt to Adjusted EBITDA was 5.1x.
Operational Results
John A. Kite, Chairman and CEO, commented on the results,
The KRG team continues to leverage our high-quality and diverse portfolio to drive exceptional operating results, evidenced by strong leasing volumes, double-digit blended cash leasing spreads, and higher fixed rent bumps. Our sustained outperformance is a testament to our premier portfolio, efficient operating platform, best-in-class balance sheet, and our team’s relentless intensity."
2023 Earnings Guidance
KRG raised its 2023 NAREIT FFO guidance range to $1.99 to $2.03 per diluted share from $1.96 to $2.00 per diluted share. The company expects to generate net income attributable to common shareholders of $0.19 to $0.23 per diluted share in 2023.
Dividend Announcement
On October 27, 2023, the company's Board of Trustees declared a fourth quarter 2023 dividend of $0.25 per common share, representing an 11.5% increase in total dividends declared over the prior year. The dividend will be paid on or about January 12, 2024, to shareholders of record as of January 5, 2024.
Explore the complete 8-K earnings release (here) from Kite Realty Group Trust for further details.
