Kite reports higher quarterly profit, revenue

Kite Realty Group Trust reported higher quarterly profit and revenue Wednesday afternoon and raised its guidance for the year.

The Indianapolis-based real estate company said it earned second-quarter profit of $4.6 million, or 6 cents per share, compared with a loss of $5.1 million, or 16 cents per share, in the second quarter of 2014.

Kite saw funds from operations, or FFO, increase to $41.6 million, or 49 cents per share, compared with $17.4 million, or 50 cents per share, in the year-ago period. FFO beat analyst expectations by 1 cent per share.

FFO is a common measure of performance for real estate investment trusts.

Revenue more than doubled, to $83.7 million, in the second quarter, largely due to the addition of properties in the portfolio of Inland Diversified Real Estate Trust Inc., which Kite purchased last summer. Analysts had expected revenue of $84.6 million.

Occupancy in its portfolio dipped slightly. Kite, which owned interest in 119 properties totaling 24 million square feet as of June 30, said the properties were 94.8-percent leased, compared with 95.1 percent in the previous quarter.

Kite executed 77 leases totaling 419,537 square feet during the second quarter.

The company increased the low end of its earnings guidance for the year, from $1.93 to $1.95 per share.

Company shares closed at $26.20 each Thursday prior to the release of the earnings report, down 1.6 percent for the day.

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