IBJNews

Kite sells 3 area buildings in dealmaking blitz

Back to TopCommentsE-mailPrintBookmark and Share

Kite Realty Group Trust Inc. announced Thursday that it sold three buildings in the Indianapolis area and bought properties in South Carolina and Florida during a busy fiscal fourth quarter.

The Indianapolis-based real estate investment trust also reported a loss for the fourth quarter ended Dec. 31 of $6.5 million, or 9 cents per share, on revenue of $26.7 million. That compares to a profit of $3.1 million, or 5 cents per share, on revenue of $24.6 million during the fourth quarter of 2011.

Kite blamed the loss primarily on its buyout, at a discount, of a partner in a shopping center development in North Carolina.

The local property sales included the Zionsville Place retail center along State Road 334 west of Ford Road, and the Indiana State Motor Pool and Pen Products commercial properties, which total 201,000 square feet. Together with the sale of two out-of-state retail buildings, the sales generated proceeds of $20.7 million.

Also during the quarter, Kite closed on an $18.4 million construction loan for its Rangeline Crossing redevelopment in Carmel at the corner of 116th Street and Rangeline Road. The project will be anchored by an Earth Fare grocery store.

Kite said it took an $8 million non-cash charge on its buyout of a partner in the development of a lifestyle center called Parkside Town Commons in North Carolina. The decrease also is a function of lower gains from the sale of properties in 2012, compared to 2011.

The company spent more than $50 million during the quarter to buy two shopping centers in South Carolina and another in Florida. It began construction on its Parkside Town Commons project, selling a parcel to Target, which will anchor the center, and inking a lease deal with a supermarket tenant.

Kite reported third-quarter funds from operations, or FFO, of $8.5 million, or 10 cents per share, compared with $8.6 million, or 12 cents per share, in the same quarter a year earlier. Funds from operations is a common measure of REIT performance.

The company, which owns interests in 54 retail properties totaling 8.4 million square feet, said the properties were 94.2-percent leased as of Dec. 31, compared with 93.3 percent at the end of the fourth quarter in 2011.

During the quarter, Kite completed a public offering of 12.1 million common shares at a price of $5.20 per share, generating proceeds of approximately $60 million. Kite said it used proceeds to repay borrowings and fund acquisitions and redevelopment costs.

Kite shares gained a penny Thursday prior to the earnings release, closing at $6.20 each.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

  2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

  3. http://www.omafra.gov.on.ca/english/engineer/facts/03-111.htm Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

  4. downtown in the same area as O'malia's. 350 E New York. Not sure that another one could survive. I agree a Target is needed d'town. Downtown Philly even had a 3 story Kmart for its downtown residents.

  5. Indy-area residents... most of you have no idea how AMAZING Aurelio's is. South of Chicago was a cool pizza place... but it pales in comparison to the heavenly thin crust Aurelio's pizza. Their deep dish is pretty good too. My waistline is expanding just thinking about this!

ADVERTISEMENT