Commercial Real Estate and Kite Realty Group and Real Estate & Retail

Kite Realty reports small loss as revenue rises

May 3, 2013

Kite Realty Group Trust Inc. reported a small first-quarter loss, but saw a healthy revenue increase due largely to more signed leases and gains on the sale of three land parcels. The financial performance exceeded analyst expectations.

The Indianapolis-based real estate investment trust said Thursday that lease signings in the quarter jumped 20.6 percent, for a total of 148,860 square feet. The sale of the land generated $6.8 million.

Revenue for the quarter increased 29 percent, to $32.1 million, from $24.8 million during the same period in 2012. On a same-property level, revenues rose 5.2 percent compared to last year’s first quarter.

Analysts had expected Kite to bring in revenue of $26.8 million.

Kite lost $82,000 in the quarter, compared with a loss of $31,000 during the same period a year earlier.

Kite saw quarterly funds from operations, or FFO, of $11.6 million, or 14 cents per share, excluding a $1.3 million litigation charge, compared with $7.9 million, or 11 cents per share during the same period last year. FFO is a common measure of REIT performance.

Analysts had predicted Kite would report FFO of 11 cents per share.

The company, which owns interests in 55 retail properties totaling 8.5 million square feet, said the properties were 94.5-percent leased as of March 31, compared with 93.4 percent in the year-ago period.

Kite reported its results after the market closed Thursday. Its shares finished the day up slightly, at $6.56.
 

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