Kite Realty Group Trust Inc. was back to profitability in the first quarter as revenue soared 37 percent, spurred by more retail developments becoming operational, the Indianapolis-based company said Thursday afternoon
Kite earned $2.2 million in profit, or 2 cents per diluted share, compared with a loss of $100,000 in the year-ago period.
Revenue jumped to $42.7 million, from $31 million in the year-ago period. Kite’s acquisition of nine properties in November also contributed to the gain. On the same-property level, revenue rose 4.7 percent compared with last year’s first quarter.
The company saw funds from operations, or FFO, of $12.4 million, or 9 cents per share, compared with $10.6 million, or $14 cents per share, for the same period in 2013.
Adjusted for $4.5 million in acquisition costs, FFO was $17.5 million, or 13 cents per share, compared with $11.6 million, or 14 cents per share last year.
Kite announced in February that it is buying privately held Inland Diversified Real Estate Trust Inc. for $1.2 billion in an all-stock deal.
The company’s performance was helped by healthy occupancy gains at its properties and higher rents from increasing tenant sales.
It opened five new anchor tenants last quarter totaling 239,000 square feet.
Kite, which owns interest in 64 retail properties totaling 11.3 million square feet, said the properties were 95.3 percent leased as of March 31, compared with 94.5 percent in the year-ago period.
Share of Kite closed Thursday at $6.21, up one cent in daily trading.