Kite Realty Group Trust Inc. reported a larger second-quarter loss due to a $5.4 million charge the company took after a bank foreclosed on one of its developments.
The Indianapolis-based real estate investment trust said Friday morning that it lost $8.7 million in the quarter, compared with a loss of $2.7 million during the same period a year earlier.
The impairment charge largely relates to Kite’s Kedron Village property in Georgia, a 266,000-square-foot retail center in the upscale planned community of Peachtree City. The lender foreclosed on the property in June after a Kite subsidiary defaulted on the project’s $29.5 million loan “due to insufficient cash flow being generated by the property,” Kite said in a public filing.
Kite's revenue for the quarter increased 28 percent, to $31 million, from $24.2 million during the same period in 2012. On a same-property level, revenue rose 4.4 percent compared with last year’s second quarter.
Analysts had expected Kite to bring in revenue of $29.7 million.
Kite saw funds from operations, or FFO, of $10.1 million, or 10 cents per share, compared with $7.5 million, or 10 cents per share, during the same period last year. The results were in line with analyst expectations. FFO is a common measure of REIT performance.
During the second quarter, Kite acquired Cool Springs Market, a 224,000-square-foot retail center in Nashville, which is 95.8-percent leased, and Castleton Crossing in Indianapolis, a 278,000-square-foot center, which is fully leased.
The company, which owns interests in 63 retail properties totaling 9.9 million square feet, said the properties were 95.4-percent leased as of June 30, compared with 93 percent in the year-ago period.
Shares of Kite were up a penny in premarket trading, priced at $5.69 each.