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Kite Realty Group Trust (NYSE: KRG) (the “Company”) announced today that it has acquired Cove Center, a 160,000 square foot unencumbered shopping center in Stuart, Florida for a purchase price, exclusive of closing costs, of $22.1 million. Cove Center is 97% leased and is anchored by Publix Supermarket and Beall’s Department Store. Cove Center is part of the strong trade area within the Treasure Coast of Florida with an estimated population of 73,000 residents and average household income of $84,000 within a five-mile radius of the center.
The Company also announced today that it closed on the sale of its South Elgin Commons property in South Elgin, Illinois (Chicago MSA) for a sales price of $25 million. The majority of the net proceeds were utilized to fund the acquisition of Cove Center after the pay-off of the property specific debt.
“Cove Center is an excellent addition to our operating portfolio. The execution of our capital recycling activity continues to strengthen the quality of the portfolio from a demographic, credit quality of cash flow, and long term NOI growth perspective. The Publix at Cove Center will be the top producer of sales per square foot as compared to the other Publix Centers in our portfolio,” said John A. Kite, the Company’s Chairman and Chief Executive Officer.
About Kite Realty Group Trust
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust engaged in the ownership, operation, management, leasing, acquisition, construction, redevelopment and development of neighborhood and community shopping centers in selected markets in the United States. At March 31, 2012, the Company owned interests in a portfolio of 62 operating and redevelopment properties totaling approximately 9.2 million square feet and an additional three properties currently under in-process development totaling 0.6 million square feet.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements expressed or implied by the forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include, but are not limited to: national and local economic, business, real estate and other market conditions, particularly in light of the recent slowing of growth in the U.S. economy; financing risks, including the availability of and costs associated with sources of liquidity; the Company’s ability to refinance, or extend the maturity dates of, its indebtedness; the level and volatility of interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant bankruptcies; the competitive environment in which the Company operates; acquisition, disposition, development and joint venture risks; property ownership and management risks; the Company’s ability to maintain its status as a real estate investment trust (“REIT”) for federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; risks related to the geographical concentration of our properties in Indiana, Florida and Texas; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, which discuss these and other factors that could adversely affect the Company’s results. The Company undertakes no obligation to publicly update or revise these forward-looking statements (including the FFO and net income estimates), whether as a result of new information, future events or otherwise.