IBJNews

Kite Realty Group reports lower funds from operations

Back to TopCommentsE-mailPrintBookmark and Share

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.
 

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. I am also a "vet" of several Cirque shows and this one left me flat. It didn't have the amount of acrobatic stunts as the others that I have seen. I am still glad that I went to it and look forward to the next one but I put Varekai as my least favorite.

  2. Looking at the two companies - in spite of their relative size to one another -- Ricker's image is (by all accounts) pretty solid and reputable. Their locations are clean, employees are friendly and the products they offer are reasonably priced. By contrast, BP locations are all over the place and their reputation is poor, especially when you consider this is the same "company" whose disastrous oil spill and their response was nothing short of irresponsible should tell you a lot. The fact you also have people who are experienced in franchising saying their system/strategy is flawed is a good indication that another "spill" has occurred and it's the AM-PM/Ricker's customers/company that are having to deal with it.

  3. Daniel Lilly - Glad to hear about your points and miles. Enjoy Wisconsin and Illinois. You don't care one whit about financial discipline, which is why you will blast the "GOP". Classic liberalism.

  4. Isn't the real reason the terrain? The planners under-estimated the undulating terrain, sink holes, karst features, etc. This portion of the route was flawed from the beginning.

  5. You thought no Indy was bad, how's no fans working out for you? THe IRl No direct competition and still no fans. Hey George Family, spend another billion dollars, that will fix it.

ADVERTISEMENT