Kite Realty Group Trust on Wednesday reported a profit of $600,000 for the quarter ended Dec. 31, opposed to a loss of $4.4
million during the same period in 2008.
The Indianapolis-based developer’s fourth-quarter performance met the expectations of analysts, who estimated earnings at 12 cents per share.
Kite said funds from operations fell to $8.7 million, or 12 cents per share, compared to $10 million, or 24 cents per share, for the fourth quarter in 2008. Funds from operations, or FFO, is a common performance figure used by real estate investment trusts to define the cash flow from their operations.
The company’s revenue in the last quarter fell 42 percent, to $29.3 million, reflecting a decline in construction activity, the company said.
For the entire year, FFO dropped to $28.7 million, or 48 cents per share, compared with $45.1 million, or $1.17 per share, for 2008. Adjusted FFO in 2009, which excludes costs for an impairment, was 57 cents per share.
Kite lost $1.8 million in 2009, compared with a profit of $6.1 million the previous year. The company attributed the loss to the share of a $4.4 million write-off in connection with the bankruptcy of Circuit City, and its share of a $2.7 million loss from the sale of a property.
Revenue for the year fell 23 percent, to $142.1 million.
In 2009, Kite renewed or signed 114 leases, totaling about 673,000 square feet.
“We reorganized, refocused and strengthened our leasing department, which resulted in one of the highest levels of annual leasing production in our history,” company CEO John A. Kite said in a prepared statement. “Despite the market setbacks in 2009 and the industry challenges in 2010, we believe we are well-positioned to take advantage of the changes in the real estate market cycle.”
Kite owns 51 retail properties with about 8.4 million total square feet of space, and four commercial properties that add another 500,000 square feet.