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Kite Realty Group reports lower funds from operations

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Kite Realty Group Trust’s funds from operations in the second quarter fell to $7.5 million, or 11 cents per share, compared to $8.9 million, or 15 cents per share, for the second quarter of 2009, the Indianapolis-based developer said Wednesday.

Funds from operations, or FFO, is a common performance figure used by real estate investment trusts to define cash flow from their operations.

The company’s performance met the expectation of analysts.

Kite's loss of $4 million in the second quarter resulted from a $3.5 million non-cash depreciation charge related to the redevelopment of three properties, as well as decreased construction activity and lower profits on land and outlet sales.

Kite reported a profit of $300,000 in the year-ago period and a loss of $1.1 million in the previous quarter.

Second-quarter revenue fell nearly 21 percent, to $24.8 million.

“We are again pleased with the momentum of our leasing efforts during the quarter as we increased our retail leased percentage by 100 basis points and signed several new anchor tenant leases,” CEO John A. Kite said in a prepared statement. “We continue to look for select growth opportunities while maintaining our focus on liquidity and the balance sheet.”

Occupancy in its 51 retail centers was 91 percent, up slightly from 90 percent in the previous quarter.

Kite signed or renewed 39 leases in the second quarter totaling 216,200 square feet. The amount included 35,000 square feet from a new anchor lease for Nordstrom Rack to replace an Office Depot at Rivers Edge in Indianapolis.

Rental rates for the 16 lease renewals were 0.4 percent below previous rents.

Company shares closed Wednesday at $4.98 each, after reaching $5.97 in late April.
 

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  1. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

  2. Does the $100,000,000,000 include salaries for members of Congress?

  3. "But that doesn't change how the piece plays to most of the people who will see it." If it stands out so little during the day as you seem to suggest maybe most of the people who actually see it will be those present when it is dark enough to experience its full effects.

  4. That's the mentality of most retail marketers. In this case Leo was asked to build the brand. HHG then had a bad sales quarter and rather than stay the course, now want to go back to the schlock that Zimmerman provides (at a considerable cut in price.) And while HHG salesmen are, by far, the pushiest salesmen I have ever experienced, I believe they are NOT paid on commission. But that doesn't mean they aren't trained to be aggressive.

  5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

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