Q2 2026 Kite Realty Group Trust Earnings Call Transcript
Key Points
- Same property NOI grew 3.7% in Q2 2026, leading to a raised full-year guidance range of 3% to 4%.
- Executed 128 leases totaling ~1 million sq ft with blended cash spreads of 15.9% and new lease spreads of 28.4%.
- Portfolio lease rate reached 94.8%, up 150 bps year-over-year, with a 210 bps improvement in anchor lease rate.
- Completed Project Elevate dispositions of 22 non-core assets for ~$1 billion, reducing exposure to at-risk tenants and lower-growth formats.
- Balance sheet strengthened with net debt to EBITDA at 5.1x, near the low end of the target range, and over $1.2 billion in total liquidity.
- Core FFO guidance maintained at $2.06-$2.12 per share despite strong first-half performance, implying a deceleration in the back half of 2026.
- Project Elevate transactional activity created a $0.02 per share dilution in Q2 due to timing of capital recycling.
- Guidance assumes a bad debt reserve of 90 bps of total revenues, with an assumed 100 bps rate for the second half of the year.
- Economic occupancy at 91.2% remains 250 bps below historic highs, indicating further room for improvement.
- Approximately $225 million of additional non-core tax loss sales are still expected in 2026, which could continue to create near-term earnings drag.
Thank you for standing by and welcome to the Kite Realty Group's Second Quarter 2026 Earnings Conference call. (Operator Instructions) As a reminder, today's program is being recorded.
And now I'd like to introduce your host for today's program, Bryan McCarthy, Senior Vice President, Corporate Marketing and Communication. Please go ahead, sir.
Thank you, and good afternoon, everyone. Welcome to Kite Realty Group's second quarter earnings call. Some of today's comments contain forward-looking statements that are based on assumptions of future events and are subject to inherent risks and uncertainties. Actual results may differ materially from these statements.
For more information about the factors that can adversely affect a company's results, please see our SEC filings, including our most recent Form 10-K. Today's remarks also include certain non-GAAP financial measures. Please refer to today's earnings press release available on our
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