Kite Realty Group Trust Achieves Record Liquidity Level in Second Quarter

In a significant move, Kite Realty Group Trust has reached an all-time high liquidity level of close to $500 million in its second quarter financial results. This marks a major milestone for the company as it continues to strengthen its financial position and enhance its ability to drive growth.

One of the key highlights of the quarter was the recasting of the unsecured revolving credit facility, which has increased borrowing capacity by $600 million while reducing interest rates and extending maturity dates. This move has enabled KRG to further reduce its Net Debt-to-EBITDA ratio to 6.5x from 6.8x at the end of the previous quarter.

The company also generated significant cash flow during the period, realizing net proceeds of $89 million from the contribution of three shopping centers to a joint venture with TH Real Estate, a Nuveen company. This amount was used to pay down debt and further reduce leverage.

In terms of operational performance, KRG's Funds from Operations (FFO) for the quarter came in at $45.7 million, or $0.53 per diluted common share. Although the company reported a net loss attributable to common shareholders of $1.4 million, or $0.02 per common share, this was largely driven by a non-cash impairment charge of $14.8 million.

'We are pleased with our progress in the second quarter and are excited about our future prospects,' said John Kite, Chairman and Chief Executive Officer. 'We continued to deliver strong operational performance and made significant strides towards achieving our objectives.'

The company is also making headway on its Big Box Surge initiative, with plans to complete four additional 3-R projects by year-end. These projects are expected to generate solid returns and further enhance KRG's portfolio.

In addition, KRG contributed three operating properties to a strategic partnership at cap rates that reflect the private market value of its well-positioned, open-air shopping centers. This move not only reduced leverage but also demonstrated the company's ability to unlock value from its assets.

Overall, Kite Realty Group Trust's second quarter results demonstrate the company's continued progress towards achieving its goals and improving its financial performance. With a record liquidity level and significant operational momentum, KRG is well-positioned for future success.

Kite realty group trust second quarter