Kite Realty Group Trust (KRG, Financial) filed Quarterly Report for the period ended 2009-06-30.
Kite Realty Group Trust is a full-service vertically integrated real estate investment trust focused primarily on the development construction acquisition ownership and operation of high quality neighborhood and community shopping centers in selected growth markets in the United States. They own interests in a portfolio of operating retail properties retail properties under development operating commercial properties a related parking garage commercial property under development and parcels of land that may be used for future development. Kite Realty Group Trust has a market cap of $120.4 million; its shares were traded at around $3.52 with a P/E ratio of 2.7 and P/S ratio of 0.8. The dividend yield of Kite Realty Group Trust stocks is 6.8%.
We engaged in a number of financing and refinancing activities in the second quarter of 2009. In May, we paid down approximately $57 million on our unsecured revolving credit facility using proceeds from our common share offering. Also in May, we placed $15.4 million of permanent financing on our Eastgate Pavilion shopping center, a previously unencumbered property. This variable rate loan bears interest at LIBOR plus 295 basis points and matures in April, 2012. In June, we refinanced the $44.5 million construction loan on our Cobblestone Plaza property with a variable rate loan that bears interest at LIBOR plus 250 basis points and matures in March, 2010. Also in June, we refinanced the $4.1 million loan on our Fishers Station property with a loan bearing interest at LIBOR plus 350 basis points and maturing in June 2011. Also in June, we extended the maturity date of the $9.4 million Delray Marketplace construction loan from July 2009 to June 2011. As of June 30, 2009, approximately $56 million was available to be drawn under our unsecured revolving credit facility.
Obtaining new financing is also important to our business due to the capital needs of our existing development and redevelopment projects. The properties in our development and redevelopment pipelines, which are primary drivers for our near-term growth, will require a substantial amount of capital to complete. As of June 30, 2009, our unfunded share of the total estimated cost of the properties in our current development and redevelopment pipelines was approximately $29 million. While we believe we will have access to sufficient resources to be able to fund our investments in these projects through a combination of our $57.3 million in cash and cash equivalents, new and existing construction loans and draws on our unsecured credit facility (which, as noted above, had $56 million of availability as of June 30, 2009), a prolonged credit crisis will make it more costly and difficult to raise additional capital, if necessary.
In February 2008, we purchased Rivers Edge, a 110,875 square foot shopping center located in Indianapolis, Indiana, for $18.3 million. We utilized approximately $2.7 million of proceeds from the November 2007 sale of our 176th & Meridian property in a like-kind exchange under Section 1031 of the Internal Revenue Code. The remaining purchase price of $15.6 million was funded initially through a draw on our unsecured revolving credit facility and subsequently refinanced with a variable rate loan bearing interest at LIBOR plus 125 basis points and maturing on February 3, 2010. This property was purchased with the intent to redevelop; therefore, it is included in our redevelopment pipeline, as shown in the Redevelopment Activities table below. However, for purposes of the comparison of operating results, this property is classified as property acquired during 2008 in the comparison of operating results tables below.
Excluding the changes due to transitioned development properties, the acquisition of a property, and the properties under redevelopment, the net $0.2 million decrease in rental income was primarily due to a $0.5 million decrease due to termination of big box tenants at three of our properties and smaller tenants at several other properties in 2008 and the second quarter of 2009, offset by a $0.2 million increase in real estate tax recoveries due to 2008 real estate tax refunds at several of our operating properties.
Other property related revenue primarily consists of parking revenues, overage rent, lease termination income and gains on land sales. This revenue decreased approximately $1.2 million, or 40%, as a result of a decrease of $1.3 million in gains on land sales and a $0.3 million decrease in lease termination income, offset by a $0.4 million reversal of an estimated liability for which the Company is no longer obligated.
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Kite Realty Group Trust is a full-service vertically integrated real estate investment trust focused primarily on the development construction acquisition ownership and operation of high quality neighborhood and community shopping centers in selected growth markets in the United States. They own interests in a portfolio of operating retail properties retail properties under development operating commercial properties a related parking garage commercial property under development and parcels of land that may be used for future development. Kite Realty Group Trust has a market cap of $120.4 million; its shares were traded at around $3.52 with a P/E ratio of 2.7 and P/S ratio of 0.8. The dividend yield of Kite Realty Group Trust stocks is 6.8%.
Highlight of Business Operations:
Our ability to obtain financing on satisfactory terms and to refinance borrowings as they mature has also been affected by the condition of the economy in general and by the current instability of the financial markets in particular. As of June 30, 2009, approximately $29 million of our consolidated indebtedness was scheduled to mature in the remainder of 2009 (approximately $31 million including our share of unconsolidated debt), including scheduled monthly principal payments for the remainder of 2009. We believe we have good relationships with a number of banks and other financial institutions that will allow us an opportunity to refinance these borrowings with the existing lenders or replacement lenders. However, in this current challenging environment, it is imperative that we identify alternative sources of financing and other capital in the event we are not able to refinance these loans on satisfactory terms, or at all. It is also important for us to obtain financing in order to complete our development and redevelopment projects.We engaged in a number of financing and refinancing activities in the second quarter of 2009. In May, we paid down approximately $57 million on our unsecured revolving credit facility using proceeds from our common share offering. Also in May, we placed $15.4 million of permanent financing on our Eastgate Pavilion shopping center, a previously unencumbered property. This variable rate loan bears interest at LIBOR plus 295 basis points and matures in April, 2012. In June, we refinanced the $44.5 million construction loan on our Cobblestone Plaza property with a variable rate loan that bears interest at LIBOR plus 250 basis points and matures in March, 2010. Also in June, we refinanced the $4.1 million loan on our Fishers Station property with a loan bearing interest at LIBOR plus 350 basis points and maturing in June 2011. Also in June, we extended the maturity date of the $9.4 million Delray Marketplace construction loan from July 2009 to June 2011. As of June 30, 2009, approximately $56 million was available to be drawn under our unsecured revolving credit facility.
Obtaining new financing is also important to our business due to the capital needs of our existing development and redevelopment projects. The properties in our development and redevelopment pipelines, which are primary drivers for our near-term growth, will require a substantial amount of capital to complete. As of June 30, 2009, our unfunded share of the total estimated cost of the properties in our current development and redevelopment pipelines was approximately $29 million. While we believe we will have access to sufficient resources to be able to fund our investments in these projects through a combination of our $57.3 million in cash and cash equivalents, new and existing construction loans and draws on our unsecured credit facility (which, as noted above, had $56 million of availability as of June 30, 2009), a prolonged credit crisis will make it more costly and difficult to raise additional capital, if necessary.
In February 2008, we purchased Rivers Edge, a 110,875 square foot shopping center located in Indianapolis, Indiana, for $18.3 million. We utilized approximately $2.7 million of proceeds from the November 2007 sale of our 176th & Meridian property in a like-kind exchange under Section 1031 of the Internal Revenue Code. The remaining purchase price of $15.6 million was funded initially through a draw on our unsecured revolving credit facility and subsequently refinanced with a variable rate loan bearing interest at LIBOR plus 125 basis points and maturing on February 3, 2010. This property was purchased with the intent to redevelop; therefore, it is included in our redevelopment pipeline, as shown in the Redevelopment Activities table below. However, for purposes of the comparison of operating results, this property is classified as property acquired during 2008 in the comparison of operating results tables below.
Excluding the changes due to transitioned development properties, the acquisition of a property, and the properties under redevelopment, the net $0.2 million decrease in rental income was primarily due to a $0.5 million decrease due to termination of big box tenants at three of our properties and smaller tenants at several other properties in 2008 and the second quarter of 2009, offset by a $0.2 million increase in real estate tax recoveries due to 2008 real estate tax refunds at several of our operating properties.
Other property related revenue primarily consists of parking revenues, overage rent, lease termination income and gains on land sales. This revenue decreased approximately $1.2 million, or 40%, as a result of a decrease of $1.3 million in gains on land sales and a $0.3 million decrease in lease termination income, offset by a $0.4 million reversal of an estimated liability for which the Company is no longer obligated.
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