Kite Realty Group Trust (NYSE: KRG) (the “Company”) today announced results for its second quarter ended June 30, 2012. Financial statements and exhibits attached to this release include results for the three and six months ended June 30, 2012 and 2011. Financial and Operating Results For the three months ended June 30, 2012, funds from operations (FFO), a widely accepted supplemental measure of REIT performance established by the National Association of Real Estate Investment Trusts, was $8.0 million or $0.11 per diluted share, as adjusted for a $0.5 million accelerated write off of deferred financing costs, for the Kite Portfolio compared to $8.4 million, or $0.12 per diluted share, for the same period in the prior year. The decline in FFO largely reflects the effects of the preferred share offering in the first quarter, as well as the Company’s asset recycling activity. The Company’s allocable share of FFO (excluding the write off of deferred financing costs) was $7.1 million for the three months ended June 30, 2012 compared to $7.5 million for the same period in 2011. For the six months ended June 30, 2012, FFO as adjusted for the $0.5 million write off of deferred financing costs and a first quarter $1.3 million litigation charge was $15.9 million, or $0.22 per diluted share, for the Kite Portfolio compared to $15.3 million, or $0.21 per diluted share, for the same period in the prior year. The Company’s allocable share of FFO was $14.1 million, as adjusted, for the six months ended June 30, 2012 compared to $13.6 million for the same period in 2011. Given the nature of the Company’s business as a real estate owner and operator, the Company believes that FFO is helpful to investors when measuring operating performance because it excludes various items included in net income or loss that do not relate to or are not indicative of operating performance, such as gains or losses from sales and impairments of operating properties, and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. For informational purposes, we have also provided FFO adjusted for the litigation charge recorded in the first quarter of 2012 and the write off of deferred loan costs in the second quarter of 2012. We believe this supplemental information provides a meaningful measure of our operating performance. The Company believes presenting FFO in this manner allows investors and other interested parties to form a more meaningful assessment of the Company’s operating results. A reconciliation of net income to FFO is included in the attached table.