Kite Realty tops Wall Street expectations in 2nd quarter

  • Comments
  • Print

Kite Realty Group Trust lost money in the second quarter but topped analyst expectations when it came to revenue and funds from operations.

The Indianapolis-based real estate investment trust on Thursday reported funds from operations, or FFO, of $44.2 million, or 52 cents per share, in the period. That compared with $41.6 million, or 49 cents per share in the second quarter of 2015.

Kite exceeded the average FFO estimate of nine analysts surveyed by Zacks Investment Research by a penny per share.

FFO is a closely watched performance measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.

Kite had a loss of $1.9 million, or 2 cents per share, down from a profit of $4.6 million, or 6 cents per share, a year ago.

Kite said the decrease was primarily attributable to a $4.5 million settlement gain in the second quarter of 2015 and terminated transaction costs of $2.8 million in the second quarter of 2016.

The firm posted revenue of $87.6 million in the period, which also topped Wall Street forecasts. Five analysts surveyed by Zacks expected $87.4 million. Revenue was $83.7 million in the year-ago quarter.

Kite shares fell 14 cents, to $30.14 each, Friday morning. They are up 17 percent since the beginning of the year.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our updated comment policy that will govern how comments are moderated.