Kite reports quarterly loss on acquisition costs

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Kite Realty Group Trust reported a loss of $16.4 million in the third quarter due to costs from its $1.2 billion acquisition of Inland Diversified Real Estate Trust in July.

The Indianapolis-based real estate ompany said Monday morning that the loss translated to 20 cents per share, compared with a loss of $857,813, or 4 cents per share, in the year-ago period. The quarterly loss included $19.1 million in merger and acquisition costs.

Revenue more than doubled, to $88.6 million, in the third quarter, largely due to the addition of the Inland Diversified properties. Analysts had expected revenue of $87.1 million.

Kite saw funds from operations, or FFO, increase to $24.7 million, or 29 cents per share, compared with $14 million, or 56 cents per share, in the third quarter of 2013. FFO is a common measure of performance for real estate investment trusts.

Excluding acquisition costs, FFO was $43.8 million, or 51 cents per share, beating analyst estimates by 5 cents.

Occupancy in its portfolio dipped slightly. Kite, which owned interest in 126 properties totaling 25.6 million square feet as of Sept. 30, said the properties were 94.9-percent leased as of Sept. 30, compared with 95.2 percent in the year-ago period.

The company executed 64 new and renewed leases totaling 424,516 square feet in the third quarter.

Kite shares opened trading Monday morning at $25.89 each.
 

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