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Kite Realty Group Trust (NYSE: KRG) (the “Company”) announced today operating results for the fourth quarter and full year ended December 31, 2012. Financial statements and exhibits attached to this release include results for the three and twelve months ended December 31, 2012 and 2011.
Funds From Operations, as adjusted, was $0.10 per diluted common share for the fourth quarter of 2012 and $0.43 per diluted common share for the year ended December 31, 2012.
Same Property Net Operating Income for the fourth quarter of 2012 increased 3.1% over the prior year and 3.2% for the full year 2012 compared to 2011.
The total portfolio was 94.2% leased at year-end.
Executed 55 new and renewal leases for 417,300 square feet during the fourth quarter for aggregate cash rent spreads of 25.5%.
Executed 167 new and renewal leases for 955,800 square feet during 2012 for aggregate cash rent spreads of 15.0%.
Revenue from property operations increased 8.7% in the fourth quarter over the prior year.
Acquisitions and Dispositions
Acquired Shops at Plaza Green, a power shopping center in Greenville, South Carolina in December for $28.8 million.
Acquired a Publix-anchored shopping center in Greenville, South Carolina in December for $9.1 million.
Completed the sale of three unanchored retail projects, two commercial properties, and one parcel of land held for development during the fourth quarter, generating $20.7 million in gross proceeds.
Subsequent to the end of the quarter, the Company acquired a Publix-anchored shopping center in Orlando, Florida for $11.6 million.
Completed Oleander Place, the 100% leased Whole Foods-anchored redevelopment in Wilmington, North Carolina, and transitioned the project into the operating portfolio in the fourth quarter.
Subsequent to the end of the fourth quarter, commenced construction activities on Phase I of Parkside Town Commons in Cary, North Carolina. In December, the Company sold a parcel of land to Target, executed a lease with Harris Teeter Supermarket, and acquired its partner’s 60% interest at a discount to book value.
Signed an anchor lease with LA Fitness at the Bolton Plaza redevelopment in Jacksonville, Florida and transitioned to an in-process redevelopment in the fourth quarter.
Issued 12.1 million common shares in the fourth quarter for net proceeds of $60 million which were redeployed to fund acquisitions and redevelopment costs.
Closed on a $18.4 million construction loan for Rangeline Crossing redevelopment property in Carmel, Indiana.
The Company’s 2013 debt maturities are $29.2 million on three properties.
The Company completed $414 million of financing related activities in 2012.
Financial and Operating Results
For the three months ended December 31, 2012, funds from operations (“FFO”), a widely accepted supplemental measure of REIT performance established by the National Association of Real Estate Investment Trusts, was $8.5 million, or $0.10 per diluted share for the Kite Portfolio, compared to $8.6 million, or $0.12 per diluted share, for the same period in the prior year. FFO for the fourth quarter included a $0.3 million partial recovery of a previously recorded litigation charge. Excluding the effects of the Company’s 12.1 million share offering in October 2012, FFO for the fourth quarter of 2012 would have been $0.11 per diluted share. The Company’s allocable share of FFO (excluding the partial recovery of the litigation charge) was $7.8 million for the three months ended December 31, 2012 compared to $7.6 million for the same period in 2011.