Kite Realty meets expectations with third quarter results

Kite Realty Group Trust met expectations of analysts on a key measure of financial performance in the third quarter.

The Indianapolis-based real estate investment trust on Wednesday reported funds from operations of $40.1 million, or 48 cents per share, in the period, matching expectations of seven analysts surveyed by Zacks Investment Research. Funds from operations, or FFO, is a closely watched measure in the REIT industry. It takes profit and adds back items such as depreciation and amortization.

The company had revenue of $85.7 million in the period, down from $87.1 million in the year-ago quarter. The result fell short of the estimate of $86.7 million by five analysts surveyed by Zacks.

Kite turned in a profit of $3.9 million, or 5 cents per share, down from a loss of $622,000, or 1 cent per share, a year ago.

Kite reaffirmed its guidance of full-year FFO in the range of $1.98 to $2.01 per share.

The company executed 93 leases and opened spaces for 39 new tenants in the quarter, about 70 percent of which were restaurant, grocery, and service offerings.

The annualized base rent for Kite's operating retail portfolio rose to $16.77 per square foot, up 5 percent from the same period in 2017.

Kite shares closed at $15.84 Wednesday, down about 19 percent since the beginning of the year.

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