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Kite revenue rises, but profit tumbles

November 5, 2008
Revenue for Kite Realty Group Trust rose more than 5 percent, to $35 million, for the third quarter. But its profit fell by $1 million compared to the same period last year, the locally based company reported late yesterday.

Kite recorded a profit of $2.9 million for the third quarter, compared to $3.9 million in the same quarter last year.

The developer has seen its shares flounder recently as investors predict a slow holiday shopping season will hurt retail real estate firms. Shares dropped to as low as $4.21 each in recent weeks but fetched more than $6 yesterday morning before closing at $5.10.

The company said the occupancy rate for its 52 retail properties was about 92 percent in this year's third quarter compared with 93 percent last year, a difference it attributed to the movement of three properties including Glendale Town Center from Kite's development pipeline to its operating portfolio.

Kite officials say the company's move in October to sell nearly 5 million new
shares and raise about $48 million put it on firm financial footing. All told, the company has about $100 million in cash and credit available.

Kite shares rose 32 cents this morning, to $5.42 apiece.
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