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What changed in KITE REALTY GROUP TRUST's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of KITE REALTY GROUP TRUST's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+559 added−413 removedSource: 10-K (2025-02-12) vs 10-K (2024-02-20)

Top changes in KITE REALTY GROUP TRUST's 2024 10-K

559 paragraphs added · 413 removed · 107 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

47 edited+268 added−7 removed36 unchanged
Biggest changeThe blended cash leasing spread for comparable new and non-option renewal leases was 22.7%; and • Our operating retail portfolio ABR per square foot was $20.70 as of December 31, 2023, an increase of $0.68 (or 3.4%) from the end of the prior year.
Biggest changeThe blended cash leasing spread for comparable new and non-option renewal leases was 19.9%; • Our operating retail portfolio was 95.0% leased as of December 31, 2024, with our anchor leased percentage at 97.1% and our small shop leased percentage at 91.2%; • Our operating retail portfolio ABR per square foot was $21.15 as of December 31, 2024, an increase of $0.45, or 2.2%, from the prior year; and • As of December 31, 2024, we derived 80% of our operating retail portfolio ABR from properties with a grocery component, which includes shopping centers with a big box wine and spirits store.
Our growth strategy includes the selective deployment of financial resources to projects that are expected to generate investment returns that meet or exceed our internal benchmarks.
Growth Strategy. Our growth strategy includes the selective deployment of financial resources to projects that are expected to generate investment returns that meet or exceed our internal benchmarks.
Overview Kite Realty Group Trust is a publicly held REIT that, through its majority-owned subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development, and redevelopment of high-quality, open-air shopping centers and mixed-use assets that are primarily grocery-anchored and located in high-growth Sun Belt markets and select strategic gateway markets in the United States.
Overview Kite Realty Group Trust is a publicly held REIT that, through its majority-owned subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development, and redevelopment of high-quality, open-air, grocery-anchored shopping centers and vibrant mixed-use assets that are primarily located in high-growth Sun Belt markets and select strategic gateway markets in the United States.
Some of our policies, such as those covering losses due to terrorism and floods, are insured subject to limitations involving large deductibles or co-payments and policy limits that may not be sufficient to cover losses. 8 Offices Our principal executive offices are located at 30 S. Meridian Street, Suite 1100, Indianapolis, IN 46204, and our telephone number is (317) 577-5600.
Some of our policies, such as those covering losses due to terrorism and floods, are insured subject to limitations involving large deductibles or co-payments and policy limits that may not be sufficient to cover losses. Offices Our principal executive offices are located at 30 S. Meridian Street, Suite 1100, Indianapolis, IN 46204, and our telephone number is (317) 577-5600.
We capitalized Birch in accordance with the applicable regulatory requirements. We also carry comprehensive liability, fire, extended coverage, and rental loss insurance that covers all properties in our portfolio. We believe the policy specifications and insured limits are appropriate and adequate given the relative risk of loss, cost of the coverage, geographic locations of our assets and industry practice.
We have capitalized Birch in accordance with the applicable regulatory requirements. We also carry comprehensive liability, fire, extended coverage, and rental loss insurance that covers all properties in our portfolio. We believe the policy specifications and insured limits are appropriate and adequate given the relative risk of loss, cost of the coverage, geographic locations of our assets, and industry practice.
There can be no assurance that in the future we will be able to compete successfully with our competitors in our development, acquisition and leasing activities. 7 Government Regulation We are subject to a variety of federal, state, and local environmental, health, safety and similar laws, including: Americans with Disabilities Act and Other Regulations.
There can be no assurance that in the future we will be able to compete successfully with our competitors in our development, acquisition, and leasing activities. Government Regulation We are subject to a variety of federal, state, and local environmental, health, safety, and similar laws, including: Americans with Disabilities Act and Other Regulations.
The program’s efforts are community-focused and have included: • charitable grants to programs benefiting our communities; • Company-wide service projects focused on feeding those in need and supporting local farmers; • fundraising to support displaced workers; 9 • contributions to healthcare workers and first responders; and • construction of a youth community center.
The program’s efforts are community-focused and have included: • charitable grants to programs benefiting our communities; • Company-wide service projects focused on feeding those in need and supporting local farmers; • fundraising to support displaced workers; • contributions to healthcare workers and first responders; and • construction of a youth community center.
We seek to implement our operating strategy by, among other things: • increasing rental rates upon the renewal of expiring leases or re-leasing space to new tenants while minimizing vacancy to the extent possible; • maximizing the occupancy of our operating portfolio; • minimizing tenant turnover; • maintaining leasing and property management strategies that maximize rent growth and cost recovery; • maintaining a diverse tenant mix that limits our exposure to the financial condition of any one tenant or category of retail tenants; 5 • maintaining and improving the physical appearance, condition, layout and design of our properties and other improvements located on our properties to enhance our ability to attract customers; • implementing offensive and defensive strategies against e-commerce competition; • actively managing properties to minimize overhead and operating costs; • maintaining strong tenant and retailer relationships to avoid rent interruptions and reduce marketing, leasing and tenant improvement costs that result from re-leasing space to new tenants; and • taking advantage of under-utilized land or existing square footage, reconfiguring properties for more profitable use, and adding ancillary income sources to existing properties.
We seek to implement our operating strategy by, among other things: • increasing rental rates upon the renewal of expiring leases or re-leasing space to new tenants while minimizing vacancy to the extent possible; • maximizing the occupancy of our operating portfolio; • minimizing tenant turnover; • maintaining leasing and property management strategies that maximize rent growth and cost recovery; • maintaining a diverse tenant mix that limits our exposure to the financial condition of any one tenant or category of retail tenants; • maintaining and improving the physical appearance, condition, layout, and design of our properties and other improvements located on our properties to enhance our ability to attract customers; • implementing offensive and defensive strategies against e-commerce competition; • actively managing properties to minimize overhead and operating costs; • maintaining strong tenant and retailer relationships to avoid rent interruptions and reduce marketing, leasing, and tenant improvement costs that result from re-leasing space to new tenants; and • taking advantage of underutilized land or existing square footage, reconfiguring properties for more profitable use, and adding ancillary income sources to existing properties.
Recent business initiatives encourage tenants to adopt green leases, also known as “high-performance” or “energy-aligned” leases, to equitably align the costs and benefits of energy and water efficiency investments for building owners and tenants based on principles and best practices from the Green Lease Leaders Reference Guide by the Institute for Market Transformation and the U.S. Department of Energy.
Recent business initiatives encourage tenants to adopt green leases, also referred to as “high-performance” or “energy-aligned” leases, to equitably align the costs and benefits of energy and water efficiency investments for building owners and tenants based on principles and best practices from the Green Lease Leaders Reference Guide by the Institute for Market Transformation and the U.S. Department of Energy.
The Company has continued its partnership with One Tree Planted, a non-profit organization committed to reforestation, and has planted over 35,000 new trees through its Project Green reforestation effort. We continue to evaluate potential actions that might reduce our carbon footprint or otherwise mitigate our environmental impact.
The Company has continued its partnership with One Tree Planted, a non-profit organization committed to reforestation and has planted over 47,000 new trees through its Project Green reforestation effort. We continue to evaluate potential actions that might reduce our carbon footprint or otherwise mitigate our environmental impact.
We have placed significant emphasis on maintaining a strong and diverse tenant mix, which has resulted in no tenant accounting for more than 2.7% of our ABR. See Item 2. “Properties” for a list of our top tenants by gross leasable area (“GLA”) and ABR. Financing and Capital Strategy.
We have placed significant emphasis on maintaining a strong and diverse tenant mix, which has resulted in no tenant accounting for more than 2.8% of our ABR. See Item 2. “Properties” for a list of our top tenants by gross leasable area (“GLA”) and ABR. Financing and Capital Strategy.
In addition, we implemented a policy to transition landscaping in all future redevelopment projects to drought-tolerant landscape where permitted by code.
In addition, we implemented a policy to transition landscaping in all future redevelopment projects to drought-tolerant landscaping where permitted by code.
Neither existing environmental, health, safety and similar laws nor the costs of our compliance with these laws has had a material adverse effect on our financial condition or results operations, and management does not believe that they will in the future.
Neither existing environmental, health, safety, and similar laws nor the costs of our compliance with these laws have had a material adverse effect on our financial condition or results of operations, and management does not believe that they will in the future.
Certain risks such as loss from riots, war or acts of God, and, in some cases, flooding are not insurable or the cost to insure over these events is cost prohibitive; therefore, we do not carry insurance for these losses.
Certain risks, such as loss from riots, war, or acts of God, and, in some cases, flooding, are not insurable, or the cost to insure against these events is cost prohibitive; therefore, we do not carry insurance for these losses.
We seek to implement our business objectives through the following strategies, each of which is further described in the sections that follow: • Operating Strategy : Maximize the internal growth in revenue from our operating properties by leasing and re-leasing to a strong and diverse group of retail and mixed-use tenants at increasing rental rates, when possible , and redeveloping or renovating certain properties to make them more attractive to existing and prospective tenants and customers; • Financing and Capital Preservation Strategy : Maintain a strong balance sheet with flexibility to fund our operating and investment activities.
We seek to implement our business objectives through the following strategies, each of which is further described in the sections that follow: • Operating Strategy : Maximize the internal growth in revenue from our operating properties by leasing and re-leasing to a strong and diverse group of retail and mixed-use tenants at increasing rental rates, when possible , through embedded contractual rent escalations and redeveloping or renovating certain properties to make them more attractive to existing and prospective tenants and customers; • Financing and Capital Preservation Strategy : Maintain a strong balance sheet with the flexibility to fund our operating and investment activities.
In 2020, we formed a cross-functional task force (the “ESG Task Force”) that is comprised of senior leadership and members from a variety of functional areas and is led by our Chief Executive Officer.
In 2020, we established a cross-functional task force (the “ESG Task Force”) that is comprised of senior leadership and members from a variety of functional areas and is led by our Chief Executive Officer.
Funding sources include the public equity and debt markets, our Revolving Facility with $1.1 billion of borrowing capacity as of December 31, 2023, secured debt, internally generated funds, proceeds from selling land and properties that no longer fit our strategy, and potential strategic joint ventures; and • Growth Strategy : Prudently use available cash flow, targeted asset recycling, equity and debt capital to selectively acquire additional retail properties and redevelop or renovate existing properties where we believe investment returns would meet or exceed internal benchmarks.
Funding sources include the public equity and debt markets, our Revolving Facility with $1.1 billion of borrowing capacity as of December 31, 2024, secured debt, internally generated funds, proceeds from selling land and properties that no longer fit our strategy, and potential strategic joint ventures; and 5 Table of Contents • Growth Strategy : Prudently use available cash flow, targeted asset recycling, equity and debt capital to selectively acquire additional retail properties and redevelop or renovate existing properties where we believe investment returns would meet or exceed internal benchmarks.
Community Development We seek to foster a corporate culture where our many stakeholders, including our employees, engage in the topic of community development and collaborate to extend resources towards the advancement of this principle. We are proud to be an active citizen of the communities in which we operate.
Community Development We seek to foster a corporate culture where our many stakeholders, including our employees, engage in the topic of community development and collaborate to extend resources towards the advancement of this principle. We are proud to be active citizens of the communities in which we operate.
The excise tax is based on the number of full-time employees. We do not anticipate being subject to a penalty under the ACA; however, even in the event that we are, any such penalty would be less than $1.0 million, as we had 229 full-time employees as of December 31, 2023. Environmental Regulations.
The excise tax is based on the number of full-time employees. We do not anticipate being subject to a penalty under the ACA; however, even in the event that we are, any such penalty would be less than $1.0 million, as we had 227 full-time employees as of December 31, 2024. Environmental Regulations.
Business Objectives and Strategies Our primary business objectives are to (i) increase the cash flow and value of our properties, (ii) achieve sustainable long-term growth, and (iii) maximize shareholder value primarily through the ownership, operation, acquisition, development and redevelopment of high-quality, open-air shopping centers and mixed-used assets that are primarily grocery-anchored and located in high-growth Sun Belt markets and select strategic gateway markets.
Business Objectives and Strategies Our primary business objectives are to (i) increase the cash flow and value of our properties, (ii) achieve sustainable long-term growth, and (iii) maximize shareholder value primarily through the ownership, operation, acquisition, development, and redevelopment of high-quality, open-air, grocery-anchored shopping centers and vibrant mixed-use assets that are primarily located in high-growth Sun Belt markets and select strategic gateway markets in the United States.
We use the following tools to recognize our employees, advance our talent pool and create a sustainable and long-term enterprise: (i) performance plans, (ii) talent recognition via our digital employee-to-employee Recognition Wall, (iii) Level Up award that recognizes employees who have made an extraordinary effort to help the Company achieve success, (iv) FOCUSED award that acknowledges employees who have embodied our FOCUSED values (forward-thinking, optimistic, collaborative, urgent, sound, empowered, and dedicated) throughout the year, and (v) individual development planning, along with reward packages.
We use the following tools to recognize our employees, advance our talent pool, and create a sustainable and long-term enterprise: (i) performance plans, (ii) Level Up award that recognizes employees who have made an extraordinary effort to help the Company achieve success, (iii) FOCUSED award that acknowledges employees who have embodied our FOCUSED values (forward-thinking, optimistic, collaborative, urgent, sound, empowered, and dedicated) throughout the year, and (iv) individual development planning, along with reward packages.
We implement our growth strategy in a number of ways, including: • continually evaluating our operating properties for redevelopment and renovation opportunities that we believe will make them more attractive for leasing to new tenants, right-sizing of anchor spaces while increasing rental rates, and re-leasing spaces to existing tenants at increased rental rates; • completing our two active development and redevelopment projects at Carillon medical office building and The Corner – IN; • evaluating the entitled land holdings to determine the optimal real estate use and capital allocation decisions; • disposing of select assets that no longer meet our long-term investment criteria and recycling the net proceeds into properties that provide attractive returns and rent growth potential in targeted markets or using the proceeds to repay debt, thereby reducing our leverage; and • selectively pursuing the acquisition of retail operating properties, portfolios and companies in markets with strong demographics.
We implement our growth strategy in a number of ways, including: • continually evaluating our operating properties for redevelopment and renovation opportunities that we believe will make them more attractive for leasing to new tenants, rightsizing of anchor spaces while increasing rental rates, and re-leasing spaces to existing tenants at increased rental rates; • completing our two active development and redevelopment projects at The Corner – IN and One Loudoun Expansion; • evaluating the entitled land holdings to determine the optimal real estate use and capital allocation decisions; • disposing of select assets that no longer meet our long-term investment criteria and recycling the net proceeds into properties that provide attractive returns and rent growth potential in targeted markets or using the proceeds to repay debt, thereby reducing our leverage; and • selectively pursuing the acquisition of retail operating properties, portfolios, and companies in markets with strong demographics.
In addition, some of our properties have tenants that may use hazardous or toxic substances in the routine course of their businesses.
In addition, some of our properties have tenants that may use hazardous or toxic substances in the routine course of their business.
Human Capital As of December 31, 2023, we had 229 full-time employees. The majority of these employees were based at our Indianapolis, Indiana headquarters though we also maintain regional offices across the United States. We believe our employees are the most important part of our business.
Human Capital As of December 31, 2024, we had 227 full-time employees. The majority of these employees were based at our Indianapolis, Indiana headquarters, though we also maintain regional offices across the United States. We believe our employees are the most important part of our business.
Environmental laws require that ACBM be properly managed and maintained, and fines and penalties may be imposed on building owners or operators for failure to comply with these requirements. The laws also may allow third parties to seek recovery from owners or operators for personal injury associated with exposure to asbestos fibers.
Environmental laws require that ACBM be properly managed and maintained, and fines and penalties may be imposed on building owners or operators for failure to comply with these requirements. In addition, third parties may be allowed to seek recovery from owners or operators for personal injury associated with exposure to asbestos fibers.
We align employees’ goals with our overall strategic direction to create a clear link between individual efforts and the long-term success of the Company and provide effective feedback on employees’ performance towards goals to ensure their growth and development.
We focus on professional development at every level of the organization. We align employees’ goals with our overall strategic direction to create a clear link between individual efforts and the long-term success of the Company and provide effective feedback on employees’ performance towards goals to ensure their growth and development.
Additionally, our leasing platform continues to perform at a high level as evidenced by the execution of 740 new and renewal leases representing approximately 4.9 million square feet during the year ended December 31, 2023. Our leased to occupied spread represents approximately $31.0 million of net operating income (“NOI”), the majority of which is expected to commence in 2024.
Additionally, our leasing platform continues to perform at a high level, as evidenced by the execution of 720 new and renewal leases representing approximately 5.0 million square feet during the year ended December 31, 2024. Our leased-to-occupied spread represents approximately $27.3 million of net operating income (“NOI”), the majority of which is expected to commence in 2025.
We make available free of charge on our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to those reports, as soon as reasonably practicable after those reports are electronically filed with, or furnished to, the SEC.
Available Information Our website address is http://www.kiterealty.com . We make available free of charge on our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to those reports as soon as reasonably practicable after those reports are electronically filed with, or furnished to, the SEC.
In evaluating opportunities for potential acquisition, development, redevelopment and disposition, we consider a number of factors, including: • the expected returns and related risks associated with the investments relative to our weighted cost of capital to make such investments; • the current and projected cash flows and market value of the property and the potential to increase cash flows and market value if the property were to be successfully re-leased or redeveloped; • the price being offered for the property, the current and projected operating performance of the property, the tax consequences of the transaction, and other related factors; • opportunities for strengthening the tenant mix at our properties through the placement of anchor tenants such as grocers, value retailers, hardware stores, or sporting goods retailers, as well as further enhancing a diverse tenant mix that includes restaurants, specialty shops, and other essential retailers that provide staple goods to the community and offer a high level of convenience; • the geographic location and configuration of the property, including ease of access, availability of parking, visibility, and the demographics of the surrounding area; and • the level of success of existing properties in the same or nearby markets.
In evaluating opportunities for potential acquisition, development, redevelopment, and disposition, we consider a number of factors, including: • the expected returns and related risks associated with the investments relative to our weighted cost of capital to make such investments; • the current and projected cash flows and market value of the property and the potential to increase cash flows and market value if the property were to be successfully re-leased or redeveloped; • the price being offered for the property, the current and projected operating performance of the property, the tax consequences of the transaction, and other related factors; • opportunities for strengthening the tenant mix at our properties through the placement of anchor tenants such as grocers, value retailers, hardware stores, or sporting goods retailers, as well as further enhancing a diverse tenant mix that includes restaurants, specialty shops, and other essential retailers that provide staple goods to the community and offer a high level of convenience; • the geographic location and configuration of the property, including ease of access, availability of parking, visibility, and the demographics of the surrounding area; and • the level of success of existing properties in the same or nearby markets. 7 Table of Contents During 2024, we acquired one operating retail property for a gross purchase price of $40.1 million and generated gross proceeds of $30.6 million from one property disposition and net proceeds of $13.2 million from the sale of land parcels.
We intend to continue implementing our financing and capital strategies in a number of ways, which may include one or more of the following actions: • prudently managing our balance sheet, including maintaining sufficient availability under our Revolving Facility so that we have additional capacity to fund our development and redevelopment projects and pay down maturing debt if refinancing that debt is not desired or practical; • extending the scheduled maturity dates of and/or refinancing our near-term mortgage, construction and other indebtedness; • expanding our unencumbered asset pool; • raising additional capital through the issuance of common shares, preferred shares or other securities; • managing our exposure to interest rate increases on our variable-rate debt through the selective use of fixed rate hedging transactions; • issuing unsecured bonds in the public markets and securing property-specific long-term, non-recourse financing; and • entering into joint venture arrangements in order to access less expensive capital and mitigate risk. 6 Growth Strategy.
We maintain an investment-grade credit rating that we expect will continue to enable us to opportunistically access the public unsecured bond market and allow us to lower our cost of capital and provide greater flexibility in managing the acquisition and disposition of assets in our operating portfolio. 6 Table of Contents We intend to continue implementing our financing and capital strategies in a number of ways, which may include one or more of the following actions: • prudently managing our balance sheet, including maintaining sufficient availability under our Revolving Facility so that we have additional capacity to fund our development and redevelopment projects and pay down maturing debt if refinancing that debt is not desired or practical; • extending the scheduled maturity dates of and/or refinancing our near-term mortgage, construction, and other indebtedness; • expanding our unencumbered asset pool; • raising additional capital through the issuance of common shares, preferred shares, or other securities; • managing our exposure to interest rate increases on our variable-rate debt through the selective use of fixed-rate hedging transactions; • issuing unsecured bonds in the public markets and securing property-specific long-term, non-recourse financing; and • entering into joint venture arrangements in order to access less expensive capital and mitigate risk.
We face competition from other REITs, including other retail REITs, and other owner-operators engaged in the ownership, leasing, acquisition, and development of shopping centers as well as from numerous local, regional and national real estate developers and owners in each of our markets.
Competition The U.S. commercial real estate market continues to be highly competitive. We face competition from other REITs, including other retail REITs, and other owner-operators engaged in the ownership, leasing, acquisition, and development of shopping centers, as well as from numerous local, regional, and national real estate developers and owners in each of our markets.
With environmental sustainability becoming a national priority, we have continued to demonstrate our strong commitment to be a responsible corporate citizen through resource reduction and employee training that has resulted in reductions of energy consumption, waste and improved maintenance cycles.
We have continued to demonstrate our strong commitment to being a responsible corporate citizen through resource reduction and employee training that has resulted in reductions of energy consumption and waste and improved maintenance cycles.
We successfully executed our operating strategy in 2023 in a number of ways, as best evidenced by our strong growth in Same Property NOI of 4.8%.
We successfully executed our operating strategy in 2024 in a number of ways, as best evidenced by our strong growth in Same Property NOI of 3.0%.
Significant 2023 Activities Operating Activities • The Company realized net income attributable to common shareholders of $47.5 million for the year ended December 31, 2023; • The Company generated Funds From Operations (“FFO”), as defined by NAREIT, of $453.3 million; • Same Property Net Operating Income (“Same Property NOI”) grew by 4.8% in 2023 compared to 2022 primarily due to contractual rent growth, higher base rent driven by positive new and renewal leasing spreads, lower bad debt expense, and an increase in overage rent from certain tenants; • In 2023, we executed new and renewal leases on 740 individual spaces representing approximately 4.9 million square feet of retail space, achieving a blended cash leasing spread of 14.3% on 552 comparable leases.
Significant 2024 Activities Operating Activities • The Company realized net income attributable to common shareholders of $4.1 million for the year ended December 31, 2024; • The Company generated Funds From Operations (“FFO”), as defined by NAREIT, of $463.7 million; • Same Property Net Operating Income (“Same Property NOI”) grew by 3.0% in 2024 compared to 2023 primarily due to contractual rent growth, higher base rent driven by positive new and renewal leasing spreads, and higher specialty leasing income, partially offset by higher bad debt expense; • In 2024, we executed new and renewal leases on 720 individual spaces representing approximately 5.0 million square feet of retail space, achieving a blended cash leasing spread of 12.8% on 542 comparable leases.
These current projects include: • installing LED lighting in parking lots (72% of our properties have installed such LED lighting as of December 31, 2023, with a goal of 80% of the portfolio by the end of 2026); • implementing smart meters and other initiatives aimed at water conservation, recycling and waste diversion (16% of our properties have implemented water efficiency measures, with a goal of 25% of the portfolio by the end of 2026); • installing electric vehicle (“EV”) charging stations (240 charging stations have been installed across 24 properties for a total of 12% of the portfolio, with a goal of 20% of the portfolio by the end of 2026); and • receiving IREM certifications (76 properties or 42% of the portfolio have received such certifications as of December 31, 2023, with a goal of 75% of the portfolio by the end of 2026).
These current projects include: • installing LED lighting in parking lots (78% of our properties have installed such LED lighting as of December 31, 2024, with a goal of 80% of the portfolio by the end of 2026); • implementing smart meters and other initiatives aimed at water conservation, recycling, and waste diversion (22% of our properties have implemented smart irrigation controls as of December 31, 2024, with a goal of 25% of the portfolio by the end of 2026); • installing electric vehicle (“EV”) charging stations (332 charging stations have been installed across 27 properties for a total of 15% of the portfolio as of December 31, 2024, with a goal of 20% of the portfolio by the end of 2026); and • receiving IREM certifications (100 properties or 56% of the portfolio have received such certifications as of December 31, 2024, with a goal of 75% of the portfolio by the end of 2026).
We have $269.6 million of debt principal scheduled to mature through December 31, 2024, which we expect will be satisfied with proceeds from the Notes Due 2034, a net debt to EBITDA ratio of 5.1x and approximately $36.4 million in cash on hand as of December 31, 2023.
We have $430.0 million of debt principal scheduled to mature through December 31, 2025, the majority of which will be satisfied with proceeds from the Notes Due 2031, a net debt to EBITDA ratio of 4.7x, and approximately $128.1 million in cash on hand as of December 31, 2024.
We have achieved our targets of at least 30% diverse representation on our Board of Trustees and at least one female-chaired committee with the chairing of our Corporate Governance and Nominating Committee by a female trustee. As of December 31, 2023, approximately 51% of our workforce was female and minorities represented approximately 21% of our team.
In 2023, we achieved our targets of at least 30% diverse representation on our Board of Trustees and at least one female-chaired committee with the chairing of our Corporate Governance and Nominating Committee by a female trustee.
However, these lease provisions may not fully protect us in the event that a tenant becomes insolvent. Also, certain of our properties have contained asbestos-containing building materials (“ACBM”) and other properties may have contained such materials based on the date of their construction.
However, these lease provisions may not fully protect us if a tenant responsible for environmental noncompliance or contamination becomes insolvent. Also, certain of our properties have confirmed asbestos-containing building materials (“ACBM”), and other properties may contain such materials.
As described above, we are highly committed to our employees, and our policies are designed to promote fairness, equal opportunities, diversity, well-being and professional development within the Company.
As described above, we are highly committed to our employees, and our policies are designed to promote fairness, equal opportunities, diversity, well-being, and professional development within the Company. Our corporate governance structure, led by our Board of Trustees, closely aligns our interests with those of our shareholders, as further described in our annual Proxy Statement.
The Company also provides reimbursement for those seeking to further their education through degree or certification programs and in 2023, we implemented a learning management system to enhance our employees’ technical and professional development.
The Company also provides reimbursement opportunities for employees pursuing educational degrees or certification programs that are relevant to their roles or professional development, and we have a learning management system to enhance our employees’ technical and professional development.
The ESG Task Force meets quarterly and focuses on setting, implementing, monitoring and communicating to our investors and other stakeholders our ESG strategy and related initiatives that are important and regularly reports to the Board of Trustees.
The ESG Task Force meets quarterly and focuses on setting, implementing, monitoring, and communicating to our investors and other stakeholders our ESG strategy and related initiatives and regularly reports to the Board of Trustees. 10 Table of Contents In June 2024, the ESG Task Force issued the Company’s annual Corporate Responsibility Report, which is published on our website and provides a comprehensive overview of our ESG strategies and initiatives.
As of December 31, 2023, we owned interests in 180 operating retail properties totaling approximately 28.1 million square feet and one office property with 0.3 million square feet. Of the 180 operating retail properties, 10 contain an office component. We also owned two development projects under construction as of this date and an additional two properties with future redevelopment opportunities.
As of December 31, 2024, we owned interests in 179 operating retail properties totaling approximately 27.7 million square feet, excluding one operating retail property classified as held for sale as of December 31, 2024, and two office properties with 0.4 million square feet. Of the 179 operating retail properties, 10 contain an office component.
Any person wishing to obtain such copies should contact our Investor Relations department by mail at our principal executive offices. The SEC maintains a website ( http://www.sec.gov ) that contains reports, proxy statements, information statements, and other information regarding issuers that file electronically with the SEC.
The SEC maintains a website ( http://www.sec.gov ) that contains reports, proxy statements, information statements, and other information regarding issuers that file electronically with the SEC. ITEM 1A.
Our retail operating portfolio was 93.9% leased to a diversified retail tenant base, with no single retail tenant accounting for more than 2.7% of our total annualized base rent (“ABR”). In the aggregate, our largest 25 tenants accounted for 28.6% of our ABR. See Item 2. “Properties” for a list of our top 25 tenants by ABR.
In the aggregate, our largest 25 tenants accounted for 28.7% of our ABR. See Item 2. “Properties” for a list of our top 25 tenants by ABR.
Professional Development and Training We believe a commitment to our employees’ learning and development through training, educational opportunities and mentorship is critical to our ability to continue to innovate. We focus on leadership development at every level of the organization.
As of 9 Table of Contents December 31, 2024, approximately 51% of our workforce was female, and minorities represented approximately 23% of our team. Professional Development and Training We believe a commitment to our employees’ learning and development through training, educational opportunities, and mentorship is critical to our ability to continue to innovate.
Copies of our Code of Business Conduct and Ethics, Code of Ethics for Principal Executive Officer and Senior Financial Officers, Corporate Governance Guidelines, and our committee charters are also available from us in print and free of charge to any shareholder upon request.
Copies of these documents are also available from us in print and free of charge to any shareholder upon request. Any person wishing to obtain such copies should contact our Investor Relations department by mail at our principal executive offices.
We have investment grade corporate credit ratings from all three major credit rating agencies.
We have investment-grade corporate credit ratings from three nationally recognized credit rating agencies. During 2024, we received a credit rating upgrade with a stable outlook from two of the rating agencies and a positive credit rating outlook from the third rating agency.
Removed
Financing and Capital Activities • We ended the year with full borrowing capacity on our $1.1 billion unsecured revolving credit facility (the “Revolving Facility”); • We originated a 10-year $95.1 million mortgage payable at a fixed interest rate of 5.36% secured by the multifamily rental portion of the expansion project at One Loudoun Downtown – Pads G & H; • We repaid the $95.0 million principal balance of the 4.23% senior unsecured notes due 2023; • In January 2024, we completed a public offering of $350.0 million aggregate principal amount of 5.50% senior unsecured notes due 2034 (“Notes Due 2034”); 4 • We acquired Prestonwood Place (Dallas/Ft.
Added
We also owned two development projects under construction as of this date and an additional two properties with future redevelopment opportunities. Our operating retail portfolio was 95.0% leased to a diversified retail tenant base, with no single retail tenant accounting for more than 2.8% of our total annualized base rent (“ABR”).
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Worth MSA) for a gross purchase price of $81.0 million; • We completed major development construction activities at The Landing at Tradition – Phase II (Port St.
Added
Financing and Capital Activities • We ended the year with full borrowing capacity on our $1.1 billion unsecured revolving credit facility (the “Revolving Facility”); 4 Table of Contents • In January 2024, we completed a public offering of $350.0 million aggregate principal amount of 5.50% senior unsecured notes due 2034 (the “Notes Due 2034”), the proceeds of which were used to repay the $149.6 million principal balance of the 4.58% senior unsecured notes that matured on June 30, 2024 and the $120.0 million unsecured term loan that matured on July 17, 2024; • In August 2024, we completed a public offering of $350.0 million aggregate principal amount of 4.95% senior unsecured notes due 2031 (the “Notes Due 2031”); • In October 2024, we extended the maturity date of the Revolving Facility to October 3, 2028, and we have the ability to obtain more favorable pricing in certain circumstances related to our total leverage ratio; • In October 2024, we extended the maturity date of our $250.0 million unsecured term loan (the “$250M Term Loan”) to October 24, 2027 and amended the terms to be priced on a ratings-based pricing grid; • We acquired Parkside West Cobb, a grocery-anchored, multi-tenant retail property in the Atlanta MSA, for a gross purchase price of $40.1 million in August 2024; • We began development activities on the retail and office portions of the expansion project at One Loudoun Downtown (the “One Loudoun Expansion”) in the Washington, D.C.
Removed
Lucie, FL MSA) and placed this project in service; • We received gross proceeds of $142.1 million from the sale of Kingwood Commons (Houston MSA), the undeveloped land and related parking garage at Pan Am Plaza (Indianapolis MSA), Reisterstown Road Plaza (Baltimore MSA), and Eastside (Dallas/Ft. Worth MSA); and • We declared cash dividends totaling $0.97 per share during 2023.
Added
MSA during the three months ended September 30, 2024; • We completed the major redevelopment construction activities at Carillon medical office building (“Carillon MOB”) in 2023 and reclassified the property from active redevelopment into our office portfolio in December 2024; • We received gross proceeds of $30.6 million from the sale of Ashland & Roosevelt in the Chicago MSA in May 2024; • We received gross proceeds of $7.6 million in connection with the sale of the first phase of a land parcel and the rights to develop 24 residential units at One Loudoun Expansion in the Washington, D.C.
Removed
We maintain an investment grade credit rating that we expect will continue to enable us to opportunistically access the public unsecured bond market and allow us to lower our cost of capital and provide greater flexibility in managing the acquisition and disposition of assets in our operating portfolio.
Added
MSA in December 2024; and • We declared cash dividends totaling $1.03 per share during 2024.
Removed
During 2023, we acquired one asset for a gross purchase price of $81.0 million and generated aggregate gross proceeds of $142.1 million from property dispositions. Competition The U.S. commercial real estate market continues to be highly competitive.
Added
Under various laws, ordinances, and regulations, as an owner or operator of real property, we may be or may become liable for the costs of investigation, removal, or remediation of releases of certain hazardous or toxic substances (including petroleum products) at or from our currently or formerly owned or operated properties, or for property damage or bodily injury (including third-party claims), fines, liens, or natural resource damages arising from the presence of such hazardous or toxic substances.
Removed
In July 2023, the ESG Task Force issued the Company’s annual Corporate Responsibility Report, which is published on our website and provides a comprehensive overview of our ESG strategies and initiatives.
Added
In addition, we could be liable for the costs of investigating or remediating contamination at off-site waste disposal facilities to which we have arranged for the disposal or treatment of hazardous or toxic substances.
Removed
Our corporate governance structure, led by our Board of Trustees, closely aligns our interests with those of our shareholders, as further described in our annual Proxy Statement. 10 Available Information Our website address is http://www.kiterealty.com .
Added
Under certain laws, such liability may be imposed without regard to whether or not we knew of, or caused, the presence of these hazardous or toxic substances, or whether we complied with environmental laws, and the liability may be joint and several.
Added
Environmental 8 Table of Contents laws require that ACBM be properly managed and maintained, and fines and penalties may be imposed on building owners or operators for failure to comply with these requirements. In addition, third parties may be allowed to seek recovery from owners or operators for personal injury associated with exposure to asbestos fibers.
Added
In addition, our operations and those of our tenants are also subject to various federal, state, and local laws and regulations governing air emissions, wastewater, stormwater, and the use, storage, and disposal of hazardous and toxic substances.
Added
RISK FACTORS The following factors, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this Annual Report on Form 10-K and presented elsewhere by management from time to time.
Added
These factors, among others, may have a material adverse effect on our business, financial condition, operating results and cash flows, including our ability to make distributions to our shareholders. It is not possible to predict or identify all such factors, and this list should not be considered a complete statement of all potential risks or uncertainties.
Added
We have separated the risks into three categories: (i) risks related to our operations; (ii) risks related to our organization and structure; and (iii) risks related to tax matters. 11 Table of Contents RISKS RELATED TO OUR OPERATIONS Our business, financial condition, performance, and value are subject to risks and conditions associated with real estate assets and the real estate industry.
Added
Our primary business is the ownership, operation, acquisition, and re/development of high-quality, open-air, grocery-anchored shopping centers and vibrant mixed-use and lifestyle assets in the United States.
Added
Our business, financial condition, results of operations, cash flows, per share trading price of our common shares, and ability to satisfy our debt service obligations and make distributions to our shareholders are subject to, and could be materially and adversely affected by, risks associated with acquiring, owning and operating these types of real estate assets.
Added
These risks include events and conditions that are beyond our control, such as periods of economic slowdown or recession, declines in the financial condition of our tenants, rising interest rates, difficulty in leasing vacant space and/or renewing existing tenants, a decline in the value of our assets, or the public perception that any of these events may occur.
Added
Additionally, certain costs of our business, such as insurance, real estate taxes, utilities, and corporate expenses, are relatively inflexible and generally do not decrease if a property is not fully occupied, rental rates decline, a tenant fails to pay rent, or other circumstances cause our revenues to decrease.
Added
If we are unable to lower our operating costs when revenues decline and/or fully recover cost increases from our tenants, our financial condition, operating results and cash flows could be materially and adversely impacted.
Added
Also, complying with the REIT requirements may cause us to forgo and/or liquidate otherwise attractive investments, which could have the effect of reducing our income and the amount available for distribution to our shareholders.
Added
Thus, compliance with the REIT requirements may hinder our ability to make or, in certain cases, maintain ownership of certain attractive investments, which could impact our financial condition, operating results and cash flows. Ongoing challenges facing our retail tenants, including bankruptcies, financial instability and consolidations, could have a material adverse effect on our business.
Added
We derive the majority of our revenue from retail tenants who lease space from us at our properties; therefore, our ability to generate cash from operations is dependent upon the ability of our tenants to pay the base rent, expense recoveries and other charges due under their leases on a timely basis.
Added
The success of our tenants in operating their businesses continues to be impacted by many current economic challenges, including, but not limited to, their ability to rely on external sources to grow and operate their business, inflation, labor shortages, domestic tariff policies, supply chain constraints, retail theft, violent crime, decreased consumer confidence and discretionary spending, and increased energy prices and interest rates.
Added
Sustained weakness in certain sectors of the U.S. economy could result in the bankruptcy or weakened financial condition of a number of retailers, including some of our tenants, and an increase in store closures. Tenants may also choose to consolidate, downsize or relocate their operations for various reasons, including mergers or other restructurings.
Added
These events, or other similar events, and economic conditions are beyond our control and could affect the overall economy as well as specific properties in our portfolio and our overall cash flow and results of operations, including the following, any of which could have a material adverse effect on our business: • Collections.
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Tenants may have difficulty paying their rent and other charges due under their lease agreements on a timely basis or request rent deferrals, reductions or abatements. • Leasing.
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Tenants may delay or cancel lease commencements, decline to extend or renew leases upon expiration, reduce the size of their leased space, or close certain locations or declare bankruptcy, which could result in the termination of the tenant’s lease with us and the related loss of rental income.
Added
Such terminations or cancellations could result in lease terminations or reductions in rent by certain other tenants in the same shopping center because of contractual co-tenancy termination or rent reduction rights contained in some leases. • Re-leasing. We may be unable to re-lease vacated space at attractive rents or at all.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

8 edited+177 added−242 removed0 unchanged
Biggest changeAll distributions will be made at the discretion of our Board of Trustees and depend upon our earnings, financial condition, maintenance of our REIT qualification and other factors as our Board of Trustees may deem relevant from time to time. We may be unable to make distributions in the future at current levels or at all.
Biggest changeFuture distributions, if any, are at the discretion of the Board of Trustees, who will continue to evaluate our sources and uses of capital, liquidity position, operating fundamentals, maintenance of our REIT qualification, and other factors they may deem relevant.
Most of our leases contain provisions designed to mitigate the adverse impact of inflation, including stated rent increases and requirements for tenants to pay a share of operating expenses, including common area maintenance, real estate taxes, insurance or other operating expenses related to the maintenance of our properties, with escalation clauses in most leases.
Inflation Many of our leases contain provisions designed to mitigate the adverse impact of inflation, including stated rent increases and requirements for tenants to pay a share of operating expenses, including common area maintenance, real estate taxes, insurance, or other operating expenses related to the maintenance of our properties, with escalation clauses in certain leases.
As a result, we would be unable to derive income from such property. Assuming we exercise all available options to extend the terms, our ground leases will expire between 2043 and 2115.
Assuming we exercise all available options to extend the terms of our ground leases, our ground leases will expire between 2045 and 2115.
However, the stated rent increases or limits on such tenant’s obligation to pay its share of operating expenses could be lower than the increase in inflation at any given time. Inflation may also limit our ability to recover all our operating expenses.
Over the past two years, we have made significant progress in executing leases that include higher fixed-rent bumps while also including CPI-based, anti-gouging protection for tenants. However, the stated rent increases or limits on such tenant’s obligation to pay its share of operating expenses could be lower than the increase in inflation at any given time.
We derive the majority of our revenue from retail tenants who lease space from us at our properties, and our ability to generate cash from operations is dependent upon the base rent, expense recoveries and other income we are able to charge and collect.
Therefore, our ability to generate cash from operations is dependent upon the rents that we are able to charge and collect from our tenants.
As a result, we may be unable to refinance or extend our existing indebtedness on favorable terms or at all. We have $269.6 million of debt principal scheduled to mature through December 31, 2024, which we expect will be satisfied with proceeds from the Notes Due 2034 that were issued in January 2024.
In addition, as of December 31, 2024, we had $430.0 million of debt principal scheduled to mature through December 31, 2025, which we expect will be satisfied through a combination of proceeds from the Notes Due 2031 that were issued in August 2024, cash flows generated from operations, capital markets transactions, and borrowings on the Revolving Facility.
During the year ended December 31, 2023, we recognized an impairment charge of $0.5 million related to one investment property that was sold in October 2023. We did not recognize any impairment charges during the years ended December 31, 2022 and 2021.
During the year ended December 31, 2023, we recorded a $0.5 million impairment charge on Eastside, a retail operating property in the Dallas/Ft. Worth MSA that was sold on October 24, 2023.
Our access to external capital depends on several factors, including general market conditions, our current and potential future earnings, the market’s perception of our growth potential and risk profile, and our cash distributions.
Our ability to access the capital markets will depend on a number of factors, including general capital market conditions. Potential Debt Repurchases.
Removed
ITEM 1A. RISK FACTORS The following factors, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this Annual Report on Form 10-K and presented elsewhere by management from time to time.
Added
Item 1A. “Risk Factors” appearing elsewhere in this Annual Report on Form 10-K. In this discussion, unless the context suggests otherwise, references to “our Company,” “we,” “us,” and “our” mean Kite Realty Group Trust and its direct and indirect subsidiaries, including Kite Realty Group, L.P.
Removed
These factors, among others, may have a material adverse effect on our business, financial condition, operating results and cash flows, including our ability to make distributions to our shareholders. It is not possible to predict or identify all such factors and this list should not be considered a complete statement of all potential risks or uncertainties.
Added
Overview In the following overview, we discuss, among other things, the status of our business and properties, the effect that current U.S. economic conditions are having on our retail tenants and us, and the current state of the financial markets and how it impacts our financing strategy.
Removed
We have separated the risks into three categories: (i) risks related to our operations; (ii) risks related to our organization and structure; and (iii) risks related to tax matters. RISKS RELATED TO OUR OPERATIONS Inflation rates have increased and may continue to be elevated or increase further, which may adversely affect our financial condition and results of operations.
Added
Our Business and Properties Kite Realty Group Trust is a publicly held REIT that, through its majority-owned subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development, and redevelopment of high-quality, open-air, grocery-anchored shopping centers and vibrant mixed-use assets that are primarily located in high-growth Sun Belt markets and select strategic gateway markets in the United States.
Removed
Inflation has increased significantly over the past two years and has remained elevated for a prolonged period with a slow downtrend despite continued restrictive monetary policy. The sharp rise in inflation has negatively impacted, and could continue to negatively impact, consumer confidence and spending and our tenants’ sales and overall health.
Added
Following our merger with RPAI in 2021, we became a top-five open-air shopping center REIT based upon market capitalization. We derive our revenue primarily from the collection of contractual rents and reimbursement payments from tenants under existing lease agreements at each of our properties.
Removed
This, in turn, has and could continue to put downward pricing pressure on rents that we are able to charge to new or renewing tenants, such that future rent spreads and, in some cases, our percentage rents, could be adversely impacted.
Added
Therefore, our operating results depend materially on, among other things, the ability of our tenants to make required lease payments, the health and resilience of the U.S. retail sector, interest rate volatility, stability in the banking sector, job growth, the real estate market, and overall economic conditions.
Removed
In addition, a portion of our leases are based on a fixed amount or fixed percentage that is not subject to adjustment for inflation. Increased inflation could have a more pronounced negative impact on our interest and general and administrative expenses, as these costs could increase at a higher rate than our rents charged to tenants.
Added
As of December 31, 2024, we own interests in 179 operating retail properties totaling approximately 27.7 million square feet, excluding one operating retail property classified as held for sale as of December 31, 2024, and two office properties with 0.4 million square feet. Of the 179 operating retail properties, 10 contain an office component.
Removed
If we are unable to lower our operating costs when revenues decline and/or pass cost increases to our tenants, our financial performance could be materially and adversely affected. Our business, financial condition, performance, and value are subject to risks and conditions associated with real estate assets and the real estate industry.
Added
We also own interests in two development projects under construction as of December 31, 2024 and an additional two properties with future redevelopment opportunities.
Removed
Our primary business is the ownership, operation, acquisition, and re/development of high-quality, open-air shopping centers and mixed-use and lifestyle assets.
Added
Inflation may also increase labor or other general and administrative expenses, which cannot be easily reduced. Historically, economic indicators such as GDP growth, consumer confidence, and employment have been correlated with demand for certain of our tenants’ products and services.
Removed
Our business, financial condition, results of operations, cash flows, per share trading price of our common shares, and ability to satisfy our debt service obligations and make distributions to our shareholders are subject to, and could be materially and adversely affected by, risks associated with acquiring, owning and operating such real estate assets.
Added
If an economic recession returns, it could, among other impacts, increase the number of our tenants that are unable to meet their lease obligations to us and limit the demand from new tenants for space in our properties.
Removed
These risks include events and conditions that are beyond our control, such as periods of economic slowdown or recession, declines in the financial condition of our tenants, rising interest rates, difficulty in leasing vacant space or renewing existing tenants, a decline in the value of our assets, or the public perception that any of these events may occur.
Added
Portfolio Update Over the past two years, demand for open-air retail real estate has been strong due to the limited availability of desirable retail space and limited new construction over the previous 15 years. As a result, in 2024 we experienced our highest annual leasing activity in the Company’s history with approximately 5.0 million square feet of leasing volume.
Removed
Additionally, certain costs of our business, such as insurance, real estate taxes, utilities, and corporate expenses, are relatively inflexible and 11 generally do not decrease if a property is not fully occupied, rental rates decline, a tenant fails to pay rent, or other circumstances cause our revenues to decrease.
Added
Open-air centers are thriving for a variety of reasons, including their ability to function as last-mile fulfillment centers and their convenient and affordable nature for retailers and consumers. This includes conveniently located and easily accessible parking fields, lower operating costs as compared to other retail formats, and essential anchors that drive daily trips.
Removed
If we are unable to lower our operating costs when revenues decline and/or pass cost increases to our tenants, our financial condition, operating results and cash flows could be materially and adversely impacted.
Added
In addition, the Company’s property types are particularly suited for retailers’ current and evolving needs, including curbside pick-up and buying online and picking up in store (“BOPIS”), which we believe will benefit from tenant demand for additional space.
Removed
Also, complying with the REIT requirements may cause us to forgo and/or liquidate otherwise attractive investments, which could have the effect of reducing our income and the amount available for distribution to our shareholders.
Added
The strength of the Company’s real estate is further evidenced by our continued strong cash leasing spreads and ABR for the retail portfolio of $21.15 per square foot as of December 31, 2024. 35 Table of Contents In evaluating potential acquisition, development, and redevelopment opportunities, we look for strong sub-markets where average household income, educational attainment, population density, traffic counts, and daytime workforce populations are above the broader market average.
Removed
Thus, compliance with the REIT requirements may hinder our ability to make or, in certain cases, maintain ownership of certain attractive investments, which would impact our financial condition, operating results and cash flows. Ongoing challenges facing our retail tenants and non-owned anchor tenants, including bankruptcies, financial instability and consolidations, may have a material adverse effect on our business.
Added
We also focus on locations that are benefiting from current population migratory patterns, namely major cities in business-friendly states with no or relatively low income taxes and mild or temperate climates. In our largest sub-markets, household incomes are significantly higher, and state income taxes are relatively lower than the medians for the broader markets.
Removed
The success of our tenants in operating their businesses continues to be impacted by many current economic challenges, which impact their cost of doing business, including, but not limited to, their ability to rely on external sources to grow and operate their business, inflation, labor shortages, supply chain constraints, retail theft, violent crime, and increased energy prices and interest rates.
Added
In addition to targeting sub-markets with strong consumer demographics, we focus on having the most desirable tenant mix at each shopping center.
Removed
Sustained weakness in certain sectors of the U.S. economy could result in the bankruptcy or weakened financial condition of a number of retailers, including some of our tenants, and an increase in store closures. Tenants may also choose to consolidate, downsize or relocate their operations for various reasons, including mergers or other restructurings.
Added
We have aggressively targeted and executed leases with prominent grocers, including Lidl, Aldi, Whole Foods, Trader Joe’s, Sprouts Farmers Market, and BJ’s Wholesale Club, expanding retailers such as Nordstrom Rack, Homesense, Ross Dress for Less, Burlington, Sierra, J.Crew Factory, and pOpshelf, service and restaurant retailers, and other retailers such as Ulta Beauty, REI, Five Below, L.L.Bean, and Total Wine & More.
Removed
These events, or other similar events, and economic conditions are beyond our control and could affect the overall economy, as well as specific properties in our portfolio and our overall cash flow and results of operations, including the following, any of which could have a material adverse effect on our business: • Collections.
Added
Additionally, we have identified cost-efficient ways to relocate, re-tenant, and renegotiate leases at several of our properties, which allows us to attract more suitable tenants. Capital and Financing Activities In 2024, we maintained a conservative balance sheet and ample liquidity to fund future growth.
Removed
Tenants may have difficulty paying their rent and other charges due under their lease agreements on a timely basis or request rent deferrals, reductions or abatements. • Leasing.
Added
We ended 2024 with approximately $1.6 billion of combined cash and borrowing capacity on the Revolving Facility.
Removed
Tenants may delay or cancel lease commencements, decline to extend or renew leases upon expiration, reduce the size of their lease, close certain locations or declare bankruptcy, which could result in the termination of the tenant’s lease with us and the related loss of rental income.
Added
The three investment-grade credit ratings we maintain provide us with access to the unsecured public bond market, which we may continue to use in the future to finance acquisitions, repay maturing debt, and fix interest rates.
Removed
Such terminations or cancellations could result in lease terminations or reductions in rent by other tenants in the same shopping center because of contractual co-tenancy termination or rent reduction rights contained in some leases. • Re-leasing. We may be unable to re-lease vacated space at attractive rents or at all.
Added
Results of Operations As of December 31, 2024, we own interests in 179 operating retail properties, excluding one operating retail property classified as held for sale as of December 31, 2024, two office properties, two development projects that are currently under construction, and two additional properties with future redevelopment opportunities.
Removed
In some cases, it may take extended periods of time or increased costs for renovations or concessions to re-lease a space. The inability to re-lease space at attractive rents, particularly if it involves a significant tenant or a non-owned anchor tenant in multiple locations, could have a material adverse effect on us.
Added
The following table sets forth the total operating properties and development projects we own as of December 31, 2024, 2023 and 2022: Number of Properties 2024 2023 2022 Operating retail properties (1) 179 180 183 Office properties 2 1 1 Active development and redevelopment projects 2 2 3 Future development and redevelopment opportunities 2 2 1 (1) Included within operating retail properties are 10, 10, and 11 properties that contain an office component as of December 31, 2024, 2023 and 2022, respectively.
Removed
Tenant bankruptcies could make it difficult for us to collect rent or make claims against a tenant in bankruptcy. A bankruptcy filing by one of our tenants would legally prohibit us from collecting any unpaid rent from that tenant unless we receive an order from the bankruptcy court permitting us to do so.
Added
The comparability of results of operations for the year ended December 31, 2024 is affected by our development, redevelopment, and operating property acquisition and disposition activities between 2022 through 2024.
Removed
Such bankruptcies could delay, reduce, or ultimately preclude the collection of amounts owed to us, including both past and future rent. A tenant in bankruptcy may attempt to renegotiate their lease or request significant rent concessions. If a lease is assumed by a tenant in bankruptcy, all pre-bankruptcy amounts owed under the lease must be paid to us in full.
Added
Therefore, we believe it is most useful to review the comparisons of our results of operations for these years (as set forth below under “Comparison of Operating Results for the Years Ended December 31, 2024 and 2023”) in conjunction with the discussion of our activities during those periods, which is set forth below. 36 Table of Contents Acquisitions The following operating properties were acquired during the years ended December 31, 2024, 2023 and 2022: Property Name MSA Acquisition Date GLA Pebble Marketplace Las Vegas February 16, 2022 85,796 MacArthur Crossing two-tenant building Dallas/Ft.
Removed
However, if a lease is rejected by a tenant in bankruptcy, we would have only a general unsecured claim for damages that may be paid only to the extent that funds are available and in the same percentage as is paid to all other holders of unsecured claims.
Added
Worth April 13, 2022 56,077 Palms Plaza Miami July 15, 2022 68,976 Prestonwood Place Dallas/Ft.
Removed
As a result, it is likely that we would recover substantially less than the full value of any unsecured claim we hold from a tenant in bankruptcy, which would result in a reduction in our cash flows and could have a material adverse effect on us.
Added
Worth September 22, 2023 155,975 Parkside West Cobb Atlanta August 30, 2024 141,627 Dispositions The following operating and other properties were sold during the years ended December 31, 2024, 2023 and 2022: Property Name MSA Disposition Date GLA Plaza Del Lago (1) Chicago June 16, 2022 100,016 Lincoln Plaza – Lowe’s (2) Worcester, MA October 27, 2022 — Kingwood Commons Houston May 8, 2023 158,172 Pan Am Plaza & Garage Indianapolis June 8, 2023 — Reisterstown Road Plaza Baltimore September 11, 2023 376,683 Eastside Dallas/Ft.
Removed
In 2023, certain retailers filed for bankruptcy protection including Bed Bath & Beyond Inc., a tenant that, as of December 31, 2022, occupied 613,000 square feet across 23 locations in our portfolio and generated $8.3 million of ABR.
Added
Worth October 24, 2023 43,640 Ashland & Roosevelt Chicago May 31, 2024 104,176 (1) Plaza Del Lago also contains 8,800 square feet of residential space composed of 18 multifamily rental units. (2) We sold the ground lease interest in one tenant at an existing multi-tenant operating retail property.
Removed
As part of its bankruptcy process, three of Bed Bath & Beyond’s leases were acquired by other retailers and the remaining leases were rejected.
Added
The total number of properties in our portfolio was not affected by this transaction. In addition, during the year ended December 31, 2024, the joint venture that owned Glendale Center Apartments, of which we have an 11.5% ownership interest, sold the 267-unit property to a third party.
Removed
Re-leasing costs may be significant for the leases that were rejected, and we could experience a significant reduction in our revenues from those properties over the next 12 to 18 months, which could adversely affect our financial condition, operating results and cash flows. The growth of e-commerce may impact our tenants and our business.
Added
Glendale Center Apartments is adjacent to our Glendale Town Center operating retail property in the Indianapolis MSA. 37 Table of Contents Development and Redevelopment Projects The following properties were under active development or redevelopment at various times during the years ended December 31, 2024, 2023 and 2022 and removed from our operating portfolio: Project Name MSA Transition to Development or Redevelopment (1) Transition to Operating Portfolio GLA Active Projects The Corner – IN (2) Indianapolis December 2015 Pending 24,000 One Loudoun Expansion (3) Washington, D.C.
Removed
Retailers continue to rely on e-commerce, which could have a material adverse impact on some of our tenants and affect decisions made by current and prospective tenants in leasing space and how they compete and innovate in a rapidly changing retail environment, including potentially reducing the size or number of their retail locations in the future.
Added
September 2024 Pending 119,000 Future Opportunities Hamilton Crossing Centre (2)(4) Indianapolis June 2014 Pending 92,283 Edwards Multiplex – Ontario (2) Los Angeles March 2023 Pending 124,614 Completed Projects Eddy Street Commons – Phase III South Bend, IN September 2020 March 2022 18,600 Shoppes at Quarterfield Baltimore October 2021 June 2022 58,000 One Loudoun Downtown – Pads G&H Residential Washington, D.C.
Removed
We cannot predict 12 with certainty how changes in e-commerce will impact the demand for space or the revenue generated at our properties in the future.
Added
October 2021 June 2022 — Circle East Baltimore October 2021 September 2022 82,000 One Loudoun Downtown – Pads G&H Commercial Washington, D.C. October 2021 December 2022 67,000 The Landing at Tradition – Phase II Port St. Lucie, FL September 2021 June 2023 39,900 Carillon MOB (5) Washington, D.C.
Removed
We continue to aggressively respond to these trends and are heavily focused on anchoring and diversifying our properties with tenants whose businesses are either more resistant to, or synergistic with, e-commerce as well as adapting our properties to allow our tenants to serve as last-mile fulfillment centers.
Added
October 2021 December 2024 126,000 (1) Transition date represents the date the property was transferred from our operating portfolio into redevelopment status. For legacy RPAI projects, the transition date represents the later of the date of the closing of the merger (October 2021) and the date the project was transferred into redevelopment status.
Removed
In addition, changes in consumer buying practices and shopping trends may also impact the financial condition of retailers that do not adapt to changes in market conditions.
Added
(2) This property has been identified as a redevelopment property and is not included in the operating portfolio or the same property pool. The redevelopment projects at Hamilton Crossing Centre and The Corner – IN will include the creation of a mixed-use development.
Removed
The risks associated with e-commerce could have a material adverse effect on the business outlook and financial results of our present and future tenants, which, in turn, could have a material adverse effect on us. We face significant competition, which may impact our rental rates, leasing terms and capital improvements.
Added
(3) The property is comprised of the development project (which has been excluded from the Company’s same property pool due to the ongoing development) and the remaining retail operating portion of the property (which is included in the Company’s same property pool as of December 31, 2024).
Removed
We compete for tenants with numerous developers, owners and operators of retail shopping centers, and regional and outlet malls, including institutional investors and other REITs. As of December 31, 2023, leases representing approximately 8.3% of our total retail ABR were scheduled to expire in 2024.
Added
(4) Approximately half of the Hamilton Crossing site was sold in January 2022 to Republic Airways Inc. In addition to the sale, the Company entered into a development and construction management agreement for the development of a corporate campus for Republic Airways. Phase I of the corporate campus was completed in 2023.
Removed
Our competitors may have greater capital resources than we do or be willing to offer lower rental rates or more favorable terms to tenants, such as substantial rent reductions or abatements, tenant allowances or other improvements, and/or early termination rights, which may pressure us to reduce our rental rates, undertake unexpected capital improvements or offer other terms less favorable to us, which could adversely affect our financial condition.
Added
(5) This property is included in the office portfolio and is not included in the operating portfolio or the same property pool. In addition, during the year ended December 31, 2024, the Company disposed of the first phase of a land parcel and the rights to develop 24 residential units at One Loudoun Expansion in the Washington, D. C. MSA.
Removed
Additionally, if retailers or consumers perceive that shopping at other locations is more convenient, cost-effective or otherwise more attractive, our revenues and results of operations also may suffer. There can be no assurance that we will be able to compete successfully in our development, acquisition and leasing activities in the future.
Added
The Company is under contract to sell the remaining land and the rights to develop an additional 54 residential units, which are expected to close in phases through 2026. 38 Table of Contents Comparison of Operating Results for the Years Ended December 31, 2024 and 2023 The following table reflects changes in the components of our consolidated statements of operations for the years ended December 31, 2024 and 2023 (in thousands) : Year Ended December 31, 2024 2023 Change Revenue: Rental income $ 826,548 $ 810,146 $ 16,402 Other property-related revenue 10,631 8,492 2,139 Fee income 4,663 4,366 297 Total revenue 841,842 823,004 18,838 Expenses: Property operating 113,601 107,958 5,643 Real estate taxes 103,893 102,426 1,467 General, administrative and other 52,558 56,142 (3,584) Depreciation and amortization 393,335 426,361 (33,026) Impairment charges 66,201 477 65,724 Total expenses 729,588 693,364 36,224 (Loss) gain on sales of operating properties, net (864) 22,601 (23,465) Operating income 111,390 152,241 (40,851) Other (expense) income: Interest expense (125,691) (105,349) (20,342) Income tax expense of taxable REIT subsidiary (139) (533) 394 Loss on extinguishment of debt (180) — (180) Equity in (loss) earnings of unconsolidated subsidiaries (1,158) 33 (1,191) Gain on sale of unconsolidated property, net 2,325 — 2,325 Other income, net 17,869 1,991 15,878 Net income 4,416 48,383 (43,967) Net income attributable to noncontrolling interests (345) (885) 540 Net income attributable to common shareholders $ 4,071 $ 47,498 $ (43,427) Property operating expense to total revenue ratio 13.5 % 13.1 % Rental income (including tenant reimbursements) increased $16.4 million, or 2.0%, due to the following (in thousands) : Net Change Year Ended December 31, 2023 to 2024 Properties or components of properties sold or held for sale during 2023 and/or 2024 $ (14,039) Properties under redevelopment or acquired during 2023 and/or 2024 7,677 Properties fully operational during 2023 and 2024 and other 22,764 Total $ 16,402 The net increase of $22.8 million in rental income for properties that were fully operational during 2023 and 2024 is primarily due to increases in the following: (i) base minimum rent of $13.5 million due to changes via contractual rate increases and leasing spreads, (ii) tenant reimbursements of $11.1 million due to higher recoverable common area maintenance expenses, and (iii) ancillary income of $0.5 million.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeAs risk management is an ongoing process, the Company regularly assesses its cybersecurity risks and adjusts its program accordingly. Via multiple monitoring solutions, potential cyber threats are automatically logged and proactively addressed. Our monitoring tools use well-established vulnerability scoring to aid in the overall risk assessment.
Biggest changeVia multiple monitoring solutions, potential cyber threats are automatically logged and proactively addressed. Our monitoring tools use well-established vulnerability scoring to aid in the overall risk assessment. The scoring ranks by potential severity and likelihood and includes a review of mitigating factors. The Company prioritizes its cybersecurity investments based on the likelihood and impact of potential threats.
The Company regularly performs internal and external penetration testing and vulnerability scanning with the support of well-established third-party providers. Any identified deficiencies or vulnerabilities are reviewed by the IT staff and management and remediation steps are taken based on the criticality of the results.
The Company regularly performs internal and external penetration testing and vulnerability scanning with the support of well-established third-party providers. Identified deficiencies or vulnerabilities are reviewed by the IT staff and management, and remediation steps are taken based on the criticality of the results.
Risk data analyzed includes summary and detailed data from monitoring and protection systems along with remediation reports to ensure the constant evolution of the program.
Risk data analyzed includes summary and detailed data from monitoring and protection systems along with remediation reports to help ensure the constant evolution of the program.
In addition, when appropriate, cybersecurity risks and incidents will be reported to the Board of Trustees by the Company’s Chief Financial Officer. 26 Management’s Role The Company’s management team is responsible for implementing and managing the Company’s cybersecurity risk management program. The management team regularly reviews the Company’s cybersecurity risks and adjusts the program as needed.
In addition, when appropriate, cybersecurity risks and incidents will be reported to the Board of Trustees by the Company’s Chief Financial Officer. Management’s Role The Company’s management team is responsible for implementing and managing the Company’s cybersecurity risk management program. The management team regularly reviews the Company’s cybersecurity risks and adjusts the program as 27 Table of Contents needed.
Risks And Impact From Cybersecurity Threats To date, we are not aware of any risks from cybersecurity threats or incidents that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations or financial condition.
Risks And Impact From Cybersecurity Threats As of December 31, 2024, we are not aware of any risks from cybersecurity threats or incidents that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations or financial condition.
The Company also carries other insurance that may cover ancillary aspects of a cybersecurity incident; however, damage and claims arising from a cybersecurity incident may exceed the amount of any insurance available. 27
The Company also carries other insurance that may cover ancillary aspects of a cybersecurity incident; however, damage and claims arising from a cybersecurity incident may exceed the amount of any insurance available. 28 Table of Contents
Key members of the IT team responsible for information security include several individuals with over 20 years of experience within various industries including real estate, global retail, fintech and insurance along with experience working for several top IT service and solutions providers. The IT team provides quarterly reports to the Company’s senior management.
Key members of the IT team responsible for information security include several individuals with over 20 years of experience within various industries, including real estate, global retail, fintech, and insurance, along with experience working for several top IT service and solutions providers.
While the full Board of Trustees has primary responsibility for risk oversight, it has delegated to the Audit Committee the responsibility for overseeing the Company’s enterprise risk management and risk mitigation policies and programs, including matters related to privacy and cybersecurity. The Audit Committee reviews the Company’s cybersecurity risks and the effectiveness of its cybersecurity program every quarter.
While the full Board of Trustees has primary responsibility for risk oversight, it has delegated to the Audit Committee the responsibility for overseeing the Company’s enterprise risk management and risk mitigation policies and programs, including matters related to privacy and cybersecurity.
ITEM 1C. CYBERSECURITY Cybersecurity Risk Management Process The Company relies extensively on IT systems to operate and manage its business and process transactions. As a result, our business is at risk from, and may be impacted by, cybersecurity incidents. The Company’s cybersecurity risk management program leverages the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework.
ITEM 1C. CYBERSECURITY Cybersecurity Risk Management Process The Company relies extensively on IT systems to operate and manage its business and process transactions. As a result, our business is at risk from, and may be impacted by, cybersecurity incidents.
Such reports typically address, among other things, the Company’s cybersecurity strategy, initiatives, key security metrics, business response plans, and the evolving cybersecurity threat landscape. The Company has cybersecurity insurance designed to cover certain expenses relating to cybersecurity incidents.
The IT team provides quarterly reports to the Company’s senior management, which typically address, among other things, the Company’s cybersecurity strategy, initiatives, key security metrics, business response plans, and the evolving cybersecurity threat landscape. The Company has cybersecurity insurance designed to cover certain expenses related to cybersecurity incidents.
“Risk Factors – We and our tenants face risks related to cybersecurity attacks that could cause loss of confidential information and other business disruptions.” included elsewhere within this Annual Report on Form 10-K. Board of Trustees Oversight Our Board of Trustees oversees various risks that the Company may face from time to time.
“ Risk Factors ” within this Annual Report on Form 10-K. Board of Trustees Oversight Our Board of Trustees oversees various risks that the Company may face from time to time.
However, evolving cybersecurity threats make it increasingly challenging to anticipate, detect, and defend against cybersecurity threats and incidents. For more information regarding our cybersecurity risks, refer to Item 1A.
However, evolving cybersecurity threats make it increasingly challenging to anticipate, detect, and defend against cybersecurity threats and incidents. For more information regarding our cybersecurity risks, see “We and our tenants face risks related to cyber attacks that could cause loss of confidential information and other business disruptions” in Item 1A.
Reports on these topics are provided to the Audit Committee by the Senior Vice President, Chief Technology Officer and the Vice President, Internal Audit and Enterprise Risk Management on a quarterly basis.
The Audit Committee reviews the Company’s cybersecurity risks and the effectiveness of its cybersecurity program every quarter, including current threat levels and ongoing program enhancements. Reports on these topics are provided to the Audit Committee by the Vice President, Chief Information Security Officer (“CISO”) and the Vice President, Internal Audit and Enterprise Risk Management on a quarterly basis.
Cybersecurity tools and services are configured to identify threats and risks that may be associated with the use of third-party applications or solutions. The Company has developed incident response plans to contain, investigate, respond to and recover from cybersecurity incidents.
Cybersecurity tools and services are configured to identify threats and risks that may be associated with the use of third-party applications or solutions. We prioritize our cybersecurity efforts relating to third parties based on the likelihood and potential impact of cybersecurity threats.
Removed
The scoring ranks by potential severity and likelihood and includes a review of mitigating factors. The Company prioritizes its cybersecurity investments based on the likelihood and impact of potential threats. From onboarding and at least annually thereafter, the Company educates and trains its workforce on cybersecurity leading practices using a variety of methods.
Added
The Company’s cybersecurity risk management program leverages the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework, which is used to benchmark and tailor the Company’s strategies and program to our risk profile and specific operational needs and goals. As risk management is an ongoing process, the Company regularly assesses its cybersecurity risks and adjusts its program accordingly.
Added
We recognize that cybercriminals frequently target employees to gain unauthorized access to information systems. Therefore, from onboarding and at least annually thereafter, the Company educates and trains its employees on cybersecurity leading practices using a variety of methods, which is supplemented throughout the year with regular phishing and other cyber-related testing.
Added
These efforts may include reviewing security documentation or protocols of key vendors, service providers, and external users of our systems. The Company has developed cybersecurity incident response plans to contain, investigate, respond to, and recover from cybersecurity incidents that may jeopardize the confidentiality, integrity, or availability of our IT systems.
Added
Key members of management, including the Company’s Chief Financial Officer, Chief Operating Officer, and Chief Legal Officer, as well as employees from IT, internal audit, marketing and communications, and human resources, serve on the Company’s security incident response team to help the Company mitigate and remediate cybersecurity incidents of which they are notified.

Item 2. Properties

Properties — owned and leased real estate

22 edited+2 added−2 removed0 unchanged
Biggest change(3) Number of Expiring Leases (1) Shop Tenants Anchor Tenants Expiring ABR (Pro rata) Expiring Ground Lease ABR (Pro rata) % of Total ABR (Pro rata) Shop Tenants Anchor Tenants Total 2024 485 1,167,418 898,001 $ 47,440 $ 582 8.3 % $ 31.45 $ 12.96 $ 23.41 2025 498 1,157,045 2,439,120 66,465 4,748 12.3 % 31.15 12.81 18.71 2026 484 1,070,288 2,203,523 64,144 4,456 11.8 % 31.17 14.33 19.84 2027 527 1,197,417 2,361,375 71,216 5,979 13.3 % 32.04 14.08 20.12 2028 557 1,215,924 2,814,481 84,191 6,651 15.6 % 35.02 14.80 20.90 2029 388 872,995 2,488,383 65,910 2,967 11.9 % 34.39 15.11 20.12 2030 166 472,579 737,328 24,657 1,566 4.5 % 30.35 14.22 20.52 2031 152 413,549 614,162 23,544 2,331 4.5 % 33.14 16.19 23.01 2032 169 415,594 1,003,118 28,095 328 4.9 % 32.57 14.95 20.11 2033 191 501,328 709,077 28,287 3,778 5.5 % 34.15 15.81 23.41 Beyond 178 326,476 1,318,471 37,164 5,727 7.4 % 38.88 18.56 22.59 3,795 8,810,613 17,587,039 $ 541,113 $ 39,113 100.0 % $ 32.74 $ 14.67 $ 20.70 (1) Lease expirations table reflects rents in place as of December 31, 2023 and does not include option periods; 2024 expirations include 51 month-to-month retail tenants.
Biggest change(3) Number of Expiring Leases (1) Shop Tenants Anchor Tenants Expiring ABR (Pro rata) Expiring Ground Lease ABR (Pro rata) % of Total ABR (Pro rata) Shop Tenants Anchor Tenants Total 2025 423 1,001,732 975,209 $ 45,580 $ 2,433 8.1 % $ 32.54 $ 13.84 $ 23.31 2026 494 1,108,332 2,190,581 64,100 4,785 11.7 % 31.09 13.90 19.68 2027 538 1,205,945 2,255,715 70,633 5,587 12.9 % 32.66 14.02 20.52 2028 562 1,236,450 2,747,997 85,450 6,678 15.6 % 35.67 15.06 21.46 2029 562 1,236,206 3,040,465 88,120 3,572 15.5 % 35.55 15.40 21.23 2030 323 818,426 1,977,607 50,600 3,942 9.2 % 31.12 12.97 18.29 2031 174 469,946 675,597 26,056 2,111 4.8 % 33.68 15.29 22.84 2032 180 440,150 1,131,795 30,506 466 5.2 % 32.36 14.76 19.69 2033 196 503,675 721,638 29,065 3,778 5.6 % 35.44 15.60 23.76 2034 174 375,948 645,475 25,913 2,053 4.7 % 38.47 17.81 25.41 Beyond 176 374,406 1,162,612 34,328 5,065 6.7 % 37.56 17.54 22.41 3,802 8,771,216 17,524,691 $ 550,351 $ 40,470 100.0 % $ 33.79 $ 14.82 $ 21.15 (1) Lease expirations table reflects rents in place as of December 31, 2024 and does not include option periods; 2025 expirations include 34 month-to-month retail tenants.
This column also excludes ground leases. (2) Expiring GLA excludes the square footage of structures located on land owned by the Company and ground-leased to tenants. (3) ABR represents the monthly contractual rent as of December 31, 2023 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.
This column also excludes ground leases. (2) Expiring GLA excludes the square footage of structures located on land owned by the Company and ground-leased to tenants. (3) ABR represents the monthly contractual rent as of December 31, 2024 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.
The following table summarizes the scheduled lease expirations for retail tenants as of December 31, 2023, assuming none of the tenants exercise renewal options (dollars in thousands, except per square foot data) : Expiring Retail GLA (2) Expiring ABR per Sq. Ft.
The following table summarizes the scheduled lease expirations for retail tenants as of December 31, 2024, assuming none of the tenants exercise renewal options (dollars in thousands, except per square foot data) : Expiring Retail GLA (2) Expiring ABR per Sq. Ft.
The following table summarizes the top 25 tenants at the Company’s retail properties based on minimum rents in place as of December 31, 2023 (GLA and dollars in thousands) : Tenant Primary DBA/ Number of Stores Number of Stores (1) Total Leased GLA/NRA (2) ABR (3) % of Weighted ABR (4) The TJX Companies, Inc. T.J.
The following table summarizes the top 25 tenants at the Company’s retail properties based on minimum rents in place as of December 31, 2024 (GLA and dollars in thousands) : Tenant Primary DBA/ Number of Stores Number of Stores (1) Total Leased GLA (2) ABR (3) % of Weighted ABR (4) The TJX Companies, Inc. T.J.
The blended cash spreads for comparable new and non-option renewal leases were 22.7%. Comparable new and renewal leases are defined as those for which the space was occupied by a tenant within the last 12 months.
The blended cash spread for comparable new and non-option renewal leases was 19.9%. Comparable new and renewal leases are defined as those for which the space was occupied by a tenant within the last 12 months.
(4) Percent of weighted ABR includes ground lease rent and represents the Company’s share of the ABR at consolidated and unconsolidated properties. 30 Lease Expirations In 2024, leases representing 8.3% of total retail ABR are scheduled to expire.
(4) Percent of weighted ABR includes ground lease rent and represents the Company’s share of the ABR at consolidated and unconsolidated properties. 31 Table of Contents Lease Expirations In 2025, leases representing 8.1% of total retail ABR are scheduled to expire.
We also own interests in two development projects under construction as of December 31, 2023 and an additional two properties with future redevelopment opportunities. See “Schedule III – Consolidated Real Estate and Accumulated Depreciation” for a list of encumbrances on our properties.
Of the 179 operating retail properties, 10 contain an office component. We also own interests in two development projects that are under construction as of December 31, 2024 and an additional two properties with future redevelopment opportunities. See “Schedule III – Consolidated Real Estate and Accumulated Depreciation” for a list of encumbrances on our properties.
Ross Dress for Less (31), dd’s DISCOUNTS (1) 32 908 10,833 1.9 % PetSmart, Inc. 32 657 10,666 1.8 % Michaels Stores, Inc. Michaels 28 631 8,279 1.4 % Gap Inc. Old Navy (25), The Gap (3), Athleta (3), Banana Republic (2) 33 448 8,216 1.4 % Dick’s Sporting Goods, Inc.
Ross Dress for Less (32), dd’s DISCOUNTS (1) 33 937 11,333 1.9 % PetSmart, Inc. 32 657 10,991 1.9 % Michaels Stores, Inc. Michaels 28 631 8,346 1.4 % Gap Inc. Old Navy (25), The Gap (3), Athleta (3), Banana Republic (2) 33 448 8,137 1.4 % Dick’s Sporting Goods, Inc.
The following table sets forth information with respect to the Company’s active development projects as of December 31, 2023 (dollars in thousands) : Project MSA KRG Ownership % Projected Completion Date (1) Total Commercial GLA Total Multifamily Units Total Project Costs – at KRG's Share (2) KRG Equity Requirement (2) KRG Remaining Spend Estimated Stabilized NOI to KRG Estimated Remaining NOI to Come Online (3) Active Projects Carillon MOB Washington, D.C./Baltimore 100% Q4 2024 126,000 — $ 59,700 $ 59,700 $ 30,100 $3.5M–$4.0M $1.0M–$1.5M The Corner – IN (4) Indianapolis, IN 50% Q4 2024 24,000 285 31,900 — — $1.7M–$1.9M $1.7M–$1.9M Total 150,000 285 $ 91,600 $ 59,700 $ 30,100 $5.2M–$5.9M $2.7M–$3.4M (1) Projected completion date represents the earlier of one year after completion of project construction or substantial occupancy of the property.
The following table sets forth information with respect to the Company’s active development projects as of December 31, 2024: Project MSA KRG Ownership % Projected Completion Date (1) Total Commercial GLA Total Multifamily Units Total Project Costs – at KRG's Share KRG Equity Requirement KRG Remaining Spend Estimated Stabilized NOI to KRG Estimated Remaining NOI to Come Online (2) Active Projects The Corner – IN (3) Indianapolis, IN 50% Q1 2025 24,000 285 $31.9M $ — $ — $1.7M–$1.9M $1.7M–$1.9M One Loudoun Expansion (4) Washington, D.C./Baltimore 100% Q4 2026 119,000 — $81.0M–$91.0M $65.0M–$75.0M $65.0M–$75.0M $4.7M–$6.2M $3.2M–$4.7M Total 143,000 285 $112.9M–$122.9M $65.0M–$75.0M $65.0M–$75.0M $6.4M–$8.1M $4.9M–$6.6M (1) Projected completion date represents the earlier of one year after completion of project construction or substantial occupancy of the property.
Maxx (18), Marshalls (12), HomeGoods (11), Homesense (3), T.J. Maxx & HomeGoods combined (2), Sierra (1) 47 1,378 $ 15,422 2.7 % Best Buy Co., Inc. Best Buy (15), Pacific Sales (1) 16 633 11,294 1.9 % Ross Stores, Inc.
Maxx (18), Marshalls (13), HomeGoods (11), Homesense (4), T.J. Maxx & HomeGoods combined (2), Sierra (2) 50 1,450 $ 16,615 2.8 % Best Buy Co., Inc. Best Buy (15), Pacific Sales (1) 16 633 11,447 1.9 % Ross Stores, Inc.
Dick’s Sporting Goods (12), Golf Galaxy (1) 13 625 7,893 1.4 % Publix Super Markets, Inc. 14 672 6,935 1.2 % Total Wine & More 15 355 6,151 1.1 % Nordstrom, Inc. Nordstrom Rack 10 307 5,882 1.0 % The Kroger Co.
Dick’s Sporting Goods (12), Golf Galaxy (1) 13 625 7,956 1.3 % Publix Super Markets, Inc. 14 672 6,935 1.2 % Ulta Beauty, Inc. 28 286 6,303 1.1 % Total Wine & More 15 355 6,152 1.0 % The Kroger Co.
New leases were signed on 218 individual spaces for 1.1 million square feet of GLA (41.3% cash leasing spread on 107 comparable leases), while non-option renewal leases were signed on 310 individual spaces for 1.2 million square feet of GLA (13.0% cash leasing spread on 233 comparable leases) and option renewals were signed on 212 individual spaces for 2.6 million square feet of GLA (8.1% cash leasing spread).
New leases were signed on 204 individual spaces for 1.1 million square feet of GLA (31.9% cash leasing spread on 117 comparable leases), while non-option renewal leases were signed on 336 individual spaces for 1.6 million square feet of GLA (13.3% cash leasing spread on 245 comparable leases) and option renewals were signed on 180 individual spaces for 2.4 million square feet of GLA (6.7% cash leasing spread).
Lease Activity – New and Renewal During 2023, the Company executed new and renewal leases on 740 individual spaces totaling 4.9 million square feet (14.3% cash leasing spread on 552 comparable leases).
Lease Activity – New and Renewal During 2024, the Company executed new and renewal leases on 720 individual spaces totaling 5.0 million square feet (12.8% cash leasing spread on 542 comparable leases).
ITEM 2. PROPERTIES As of December 31, 2023, we owned interests in a portfolio of 180 operating retail properties totaling approximately 28.1 million square feet and one office property with 0.3 million square feet in 24 states. Of the 180 operating retail properties, 10 contain an office component.
ITEM 2. PROPERTIES As of December 31, 2024, we own interests in a portfolio of 179 operating retail properties totaling approximately 27.7 million square feet, excluding one operating retail property classified as held for sale as of December 31, 2024, and two office properties with 0.4 million square feet in 24 states.
(2) Owned GLA/NRA represents gross leasable area owned by the Company and excludes the square footage of development and redevelopment projects.
(2) Owned GLA represents gross leasable area owned by the Company and excludes the square footage of development and redevelopment projects. (3) Total weighted retail ABR and percent of weighted retail ABR includes ground lease rent and represents the Company’s share of the ABR at consolidated and unconsolidated properties.
(2) Total project costs and KRG equity requirement for Carillon MOB represent costs to KRG post-merger and exclude any costs spent to date prior to the merger with RPAI. (3) Estimated remaining NOI to come online excludes in-place NOI and NOI related to tenants that have signed leases but have not yet commenced paying rent.
(2) Estimated remaining NOI to come online excludes in-place NOI and NOI related to tenants that have signed leases but have not yet commenced paying rent. (3) The Company does not have any equity requirements related to this development. Total project costs are at the Company’s share and are net of the Company’s share of a $13.5 million TIF.
ABR represents 100% of the ABR at consolidated properties and the Company’s share of the ABR at unconsolidated properties including ground lease rent.
(3) ABR represents the monthly contractual rent for December 31, 2024, for each applicable tenant multiplied by 12 and does not include tenant reimbursements. ABR represents 100% of the ABR at consolidated properties and the Company’s share of the ABR at unconsolidated properties, including ground lease rent.
Operating Properties The following table summarizes the geographic diversity of the Company’s retail operating properties by region and state, ranked by ABR, as of December 31, 2023 (GLA and ABR in thousands) : Region/State Number of Properties (1) Owned GLA/NRA (2) Total Weighted Retail ABR (3) % of Weighted Retail ABR (3) South Texas 44 7,492 $ 153,000 26.4 % Florida 30 3,510 66,619 11.5 % Maryland 8 1,412 34,363 5.9 % North Carolina 8 1,535 32,856 5.7 % Virginia 7 1,130 31,252 5.4 % Georgia 10 1,707 26,335 4.5 % Tennessee 3 580 8,698 1.5 % Oklahoma 3 505 8,300 1.4 % South Carolina 2 262 3,551 0.6 % Total South 115 18,133 364,974 62.9 % West Washington 10 1,661 30,606 5.3 % Nevada 5 845 28,184 4.9 % Arizona 5 726 15,829 2.7 % California 2 530 12,417 2.1 % Utah 2 388 8,062 1.4 % Total West 24 4,150 95,098 16.4 % Midwest Indiana 15 1,636 30,753 5.3 % Illinois 8 1,163 24,736 4.3 % Michigan 1 308 6,542 1.1 % Missouri 1 453 4,048 0.7 % Ohio 1 236 2,152 0.4 % Total Midwest 26 3,796 68,231 11.8 % Northeast New York 8 1,083 30,873 5.3 % New Jersey 4 340 11,256 1.9 % Massachusetts 1 264 4,167 0.7 % Connecticut 1 206 3,645 0.6 % Pennsylvania 1 136 1,982 0.4 % Total Northeast 15 2,029 51,923 8.9 % Total 180 28,108 $ 580,226 100.0 % (1) Number of properties represents consolidated and unconsolidated retail properties.
Operating Properties The following table summarizes the geographic diversity of the Company’s retail operating properties by region and state, ranked by ABR, as of December 31, 2024 (GLA and ABR in thousands) : Region/State Number of Properties (1) Owned GLA (2) Total Weighted Retail ABR (3) % of Weighted Retail ABR (3) South Texas 44 7,493 $ 157,891 26.7 % Florida 30 3,505 69,218 11.7 % Maryland 8 1,410 35,017 5.9 % North Carolina 8 1,535 33,700 5.7 % Virginia 7 1,107 31,857 5.4 % Georgia 11 1,849 30,581 5.2 % Tennessee 3 580 8,877 1.5 % Oklahoma 3 506 8,148 1.4 % South Carolina 2 262 3,663 0.6 % Total South 116 18,247 378,952 64.1 % West Washington 10 1,633 31,098 5.3 % Nevada 5 841 28,526 4.8 % Arizona 5 714 16,088 2.7 % California 2 531 12,712 2.2 % Utah 2 388 8,215 1.4 % Total West 24 4,107 96,639 16.4 % Midwest Indiana 15 1,600 31,558 5.3 % Illinois 7 1,059 22,779 3.9 % Michigan 1 308 6,729 1.1 % Missouri 1 453 4,402 0.7 % Ohio 1 236 2,152 0.4 % Total Midwest 25 3,656 67,620 11.4 % Northeast New York 7 713 25,563 4.3 % New Jersey 4 339 11,296 1.9 % Massachusetts 1 264 4,761 0.8 % Connecticut 1 206 4,008 0.7 % Pennsylvania 1 136 1,982 0.4 % Total Northeast 14 1,658 47,610 8.1 % Total (4) 179 27,668 $ 590,821 100.0 % (1) Number of properties represents consolidated and unconsolidated retail properties.
Kroger (6), Harris Teeter (2), QFC (1), Smith’s (1) 10 355 5,844 1.0 % Lowe’s Companies, Inc. 6 — 5,838 1.0 % BJ’s Wholesale Club, Inc. 3 115 5,514 1.0 % Ulta Beauty, Inc. 25 259 5,465 0.9 % Five Below, Inc. 30 271 5,301 0.9 % Burlington Stores, Inc. 11 515 5,298 0.9 % Albertsons Companies, Inc.
Kroger (6), Harris Teeter (2), QFC (1), Smith’s (1) 10 356 6,041 1.0 % Lowe’s Companies, Inc. 6 — 5,838 1.0 % Fitness International, LLC LA Fitness (5), XSport Fitness (1) 6 241 5,696 1.0 % Five Below, Inc. 32 291 5,684 1.0 % BJ’s Wholesale Club, Inc. 3 115 5,515 0.9 % Petco Health and Wellness Company, Inc. 19 273 5,135 0.9 % Nordstrom, Inc.
(4) The Company does not have any equity requirements related to this development. Total project costs are at KRG’s share and are net of KRG’s share of a $13.5 million TIF. 29 Tenant Diversification No individual retail tenant accounted for more than 2.7% of the portfolio’s ABR for the year ended December 31, 2023.
(4) The Company’s equity requirement is shown net of land sale net proceeds of $15.9 million. 30 Table of Contents Tenant Diversification No individual retail tenant accounted for more than 2.8% of the portfolio’s ABR for the year ended December 31, 2024.
Office Depot (11), OfficeMax (3) 14 308 4,432 0.8 % Trader Joe’s 10 120 4,187 0.7 % Mattress Firm Group Inc. Mattress Firm (24), Sleepy’s (5) 29 144 4,174 0.7 % Barnes & Noble, Inc. 8 192 4,113 0.7 % Total Top Tenants 442 10,235 $ 165,852 28.6 % (1) Number of stores represents stores at consolidated and unconsolidated properties.
Office Depot (11), OfficeMax (3) 14 308 4,369 0.7 % Total Top Tenants 451 10,229 $ 169,713 28.7 % (1) Number of stores represents stores at consolidated and unconsolidated properties. (2) Total leased GLA excludes the square footage of structures located on land owned by the Company and ground-leased to tenants.
(3) Total weighted retail ABR and percent of weighted retail ABR includes ground lease rent and represents the Company’s share of the ABR at consolidated and unconsolidated properties. 28 Development and Redevelopment Projects In addition to our operating properties, as of December 31, 2023, we owned an interest in two development projects currently under construction.
(4) Excludes one operating retail property classified as held for sale as of December 31, 2024. 29 Table of Contents Development and Redevelopment Projects In addition to our operating properties, as of December 31, 2024, we own interests in two development projects that are currently under construction.
Removed
Safeway (3), Jewel-Osco (2), Tom Thumb (2) 7 345 5,100 0.9 % Petco Health And Wellness Company, Inc. 19 266 4,990 0.9 % Kohl’s Corporation 7 265 4,865 0.8 % The Container Store Group, Inc. 7 152 4,592 0.8 % DSW Designer Shoe Warehouse 16 314 4,568 0.8 % Office Depot, Inc.
Added
Nordstrom Rack 9 272 5,015 0.8 % Kohl’s Corporation 7 265 4,980 0.8 % The Container Store Group, Inc. 7 151 4,707 0.8 % Designer Brands Inc.
Removed
(2) Total leased GLA/NRA excludes the square footage of structures located on land owned by the Company and ground-leased to tenants. (3) ABR represents the monthly contractual rent for December 31, 2023 for each applicable tenant multiplied by 12 and does not include tenant reimbursements.
Added
DSW Designer Shoe Warehouse 16 313 4,630 0.8 % KnitWell Group Chico’s (7), Talbots (7), LOFT (5), Soma (4), Ann Taylor (4), White House Black Market (4) 31 134 4,571 0.8 % Trader Joe's 11 135 4,521 0.8 % Burlington Stores, Inc. 10 459 4,412 0.8 % Sprouts Farmers Market, Inc. 8 222 4,384 0.7 % Office Depot, Inc.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed1 unchanged
Biggest changeManagement believes that such matters will not have a material adverse impact on our consolidated financial condition, results of operations or cash flows taken as a whole. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 31 PART II
Biggest changeManagement believes that such matters will not have a material adverse impact on our consolidated financial condition, results of operations or cash flows taken as a whole. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 32 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

11 edited+1 added−54 removed7 unchanged
Biggest changeMANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the accompanying audited consolidated financial statements and related notes thereto and Item 1A. “Risk Factors ” appearing elsewhere in this Annual Report on Form 10-K.
Biggest changeMANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the accompanying audited consolidated financial statements and related notes thereto and
Distributions, if any, will be declared and paid at the discretion of our Board of Trustees and will depend upon a number of factors, including the amount of cash generated by operating activities, our financial condition, capital requirements, annual distribution requirements under the REIT provisions of the Code, and such other factors as our Board of Trustees deem relevant.
Distributions, if any, will be declared and paid at the discretion of our Board of Trustees and will depend upon a number of factors, including the amount of cash generated by operating activities, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code, and such other factors as our Board of Trustees deem relevant.
The graph assumes that the value of the investment in our common shares and each index was $100 at December 31, 2018 and that all cash distributions were reinvested. The shareholder return shown on the graph below is not indicative of future performance.
The graph assumes that the value of the investment in our common shares and each index was $100 at December 31, 2019 and that all cash distributions were reinvested. The shareholder return shown on the graph below is not indicative of future performance.
In April 2022, the Company’s Board of Trustees increased the size of the program from $150.0 million to $300.0 million and in February 2024, extended the program for an additional year. The program may be suspended or terminated at any time by the Company and will terminate on February 28, 2025, if not terminated or extended prior to that date.
In April 2022, the Company’s Board of Trustees increased the size of the program from $150.0 million to $300.0 million, and in January 2025, extended the program for an additional year. The program may be suspended or terminated at any time by the Company and will terminate on February 28, 2026, if not terminated or extended prior to that date.
Issuances Under Equity Compensation Plans For information regarding the securities authorized for issuance under our equity compensation plans, see Item 12 of this Annual Report on Form 10-K. 32 Performance Graph Notwithstanding anything to the contrary set forth in any of our filings under the Securities Act or the Exchange Act that might incorporate SEC filings, in whole or in part, the following performance graph will not be incorporated by reference into any such filings.
Issuances Under Equity Compensation Plans For information regarding the securities authorized for issuance under our equity compensation plans, see Item 12 of this Annual Report on Form 10-K. 33 Table of Contents Performance Graph Notwithstanding anything to the contrary set forth in any of our filings under the Securities Act or the Exchange Act that might incorporate SEC filings, in whole or in part, the following performance graph will not be incorporated by reference into any such filings.
Issuer Repurchases; Unregistered Sales of Securities From time to time, certain of our employees surrender common shares owned by them to satisfy their statutory minimum U.S. federal and state tax obligations associated with the vesting of restricted common shares of beneficial interest issued under the Company’s 2013 Equity Incentive Plan, as amended and restated as of May 11, 2022, which are repurchased by the Company.
Issuer Repurchases; Unregistered Sales of Securities From time to time, certain of our employees surrender common shares owned by them to satisfy their statutory minimum U.S. federal and state tax obligations associated with the vesting of restricted common shares of beneficial interest issued under the Company’s 2013 Equity Incentive Plan, as amended and restated as of May 11, 2022.
The following graph compares the cumulative total shareholder return of our common shares for the period from December 31, 2018 to December 31, 2023, to the S&P 500 Index and the published NAREIT All Equity REIT Index over the same period.
The following graph compares the cumulative total shareholder return of our common shares for the period from December 31, 2019 to December 31, 2024, to the S&P 500 Index and the published NAREIT All Equity REIT Index over the same period.
Under certain circumstances, we could be required to make distributions in excess of cash available for distributions in order to meet such requirements. For the taxable year ended December 31, 2023, approximately 90.6% of our distributions to shareholders constituted taxable ordinary income dividends and approximately 9.4% constituted taxable capital gains dividends.
Under certain circumstances, we could be required to make distributions in excess of cash available for distributions in order to meet such requirements. For the taxable year ended December 31, 2024, approximately 96.4% of our distributions to shareholders constituted taxable ordinary income dividends and approximately 3.6% constituted taxable capital gains dividends.
There were no shares of common stock surrendered or repurchased during the three months ended December 31, 2023. As of December 31, 2023, $300.0 million remained available for repurchases under the Company’s authorized Share Repurchase Program, which was announced in February 2021.
These shares are repurchased by the Company. There were no shares of common stock surrendered or repurchased during the three months ended December 31, 2024. As of December 31, 2024, $300.0 million remains available for repurchases under the Company’s authorized Share Repurchase Program, which was announced in February 2021.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common shares trade on the New York Stock Exchange (the “NYSE”) under the symbol “KRG.” On February 14, 2024, the closing price of our common shares on the NYSE was $21.18.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common shares trade on the New York Stock Exchange (the “NYSE”) under the symbol “KRG.” On February 7, 2025, the closing price of our common shares on the NYSE was $23.54.
Holders On February 14, 2024, there were 9,468 registered holders of record of our common shares, which does not include beneficial or non-registered holders that held their shares through various brokerage firms.
Holders On February 7, 2025, there were 8,932 registered holders of record of our common shares, which does not include beneficial or non-registered holders that hold their shares through various brokerage firms.
Removed
The actual returns shown on the graph above are as follows: 12/18 6/19 12/19 6/20 12/20 6/21 12/21 6/22 12/22 6/23 12/23 Kite Realty Group Trust $ 100.00 $ 114.32 $ 153.10 $ 93.25 $ 122.25 $ 183.22 $ 184.49 $ 149.10 $ 185.96 $ 201.98 $ 211.36 S&P 500 $ 100.00 $ 118.54 $ 131.49 $ 127.44 $ 155.68 $ 179.42 $ 200.37 $ 160.38 $ 164.08 $ 191.80 $ 207.21 FTSE NAREIT Equity REITs $ 100.00 $ 117.78 $ 126.00 $ 102.43 $ 115.92 $ 141.37 $ 166.04 $ 132.50 $ 125.58 $ 132.32 $ 142.83 ITEM 6. [RESERVED] 33 ITEM 7.
Added
The actual returns shown on the graph above are as follows: 12/19 6/20 12/20 6/21 12/21 6/22 12/22 6/23 12/23 6/24 12/24 Kite Realty Group Trust $ 100.00 $ 60.91 $ 79.85 $ 119.67 $ 120.51 $ 97.39 $ 121.47 $ 131.93 $ 138.06 $ 138.35 $ 159.42 S&P 500 $ 100.00 $ 96.92 $ 118.40 $ 136.46 $ 152.39 $ 121.97 $ 124.79 $ 145.87 $ 157.59 $ 181.69 $ 197.02 FTSE NAREIT Equity REITs $ 100.00 $ 81.29 $ 92.00 $ 112.20 $ 131.78 $ 105.16 $ 99.67 $ 105.02 $ 113.35 $ 113.20 $ 123.25 ITEM 6. [RESERVED] 34 Table of Contents ITEM 7.
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In this discussion, unless the context suggests otherwise, references to “our Company,” “we,” “us,” and “our” mean Kite Realty Group Trust and its direct and indirect subsidiaries, including Kite Realty Group, L.P.
Removed
Overview In the following overview, we discuss, among other things, the status of our business and properties, the effect that current U.S. economic conditions is having on our retail tenants and us, and the current state of the financial markets and how it impacts our financing strategy.
Removed
Our Business and Properties Kite Realty Group Trust is a publicly held REIT that, through its majority-owned subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development, and redevelopment of high-quality, open-air shopping centers and mixed-use assets that are primarily grocery-anchored and located in high-growth Sun Belt markets and select strategic gateway markets in the United States.
Removed
Following our merger with RPAI in 2021, we became a top-five open-air shopping center REIT based upon market capitalization. We derive our revenue primarily from the collection of contractual rents and reimbursement payments from tenants under existing lease agreements at each of our properties.
Removed
Therefore, our operating results depend materially on, among other things, the ability of our tenants to make required lease payments, the health and resilience of the U.S. retail sector, interest rate volatility, stability in the banking sector, job growth, the real estate market, and overall economic conditions.
Removed
As of December 31, 2023, we owned interests in 180 operating retail properties totaling approximately 28.1 million square feet and one office property with 0.3 million square feet. Of the 180 operating retail properties, 10 contain an office component. We also owned two development projects under construction as of this date and an additional two properties with future redevelopment opportunities.
Removed
Inflation We believe inflationary concerns could negatively impact consumer confidence and spending and our tenants’ sales and overall health. This could, in turn, continue to put downward pricing pressure on rents that we are able to charge to new or renewing tenants, such that future rent spreads and, in some cases, our percentage rents, could be adversely impacted.
Removed
Many of our leases contain provisions designed to mitigate the adverse impact of inflation, including stated rent increases and requirements for tenants to pay a share of operating expenses, including common area maintenance, real estate taxes, insurance or other operating expenses related to the maintenance of our properties, with escalation clauses in certain leases.
Removed
In 2023, we have made significant improvements converting leases to higher fixed rent bumps and including CPI protection. However, the stated rent increases or limits on such tenant’s obligation to pay its share of operating expenses could be lower than the increase in inflation at any given time.
Removed
Inflation may also increase labor or other general and administrative expenses that cannot be easily reduced. Portfolio Update In 2023, demand for open-air retail real estate was strong due to the limited availability of desirable retail space and limited new construction over the previous 15 years.
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As a result, we experienced our highest quarterly new leasing activity in the Company’s history in the fourth quarter with over 380,000 square feet of new leasing volume. Open-air centers are thriving for a variety of reasons including their ability to function as last mile fulfillment centers and their convenient and affordable nature for retailers and consumers.
Removed
This includes conveniently located and easily accessible parking fields, lower operating costs as compared to other retail formats, and essential anchors that drive daily trips.
Removed
In addition, the Company’s property types are particularly suited for retailers’ current and evolving needs, including curbside pick-up and buying online and picking up in store (“BOPIS”), which we believe will benefit from tenant demand for additional space.
Removed
The strength of the Company’s real estate is further evidenced by our continued strong cash leasing spreads and ABR for the retail portfolio of $20.70 per square foot.
Removed
The Company has continued to improve its asset quality and through the October 2021 merger with RPAI acquired a refined portfolio of high-quality, open-air shopping centers and mixed-use assets. 34 In evaluating potential acquisition, development, and redevelopment opportunities, we look for strong sub-markets where average household income, educational attainment, population density, traffic counts and daytime workforce populations are above the broader market average.
Removed
We also focus on locations that are benefiting from current population migratory patterns, namely major cities in business-friendly states with no or relatively low income taxes, and mild or temperate climates. In our largest sub-markets, household incomes are significantly higher and state income taxes are relatively lower than the medians for the broader markets.
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In addition to targeting sub-markets with strong consumer demographics, we focus on having the most desirable tenant mix at each shopping center. We have aggressively targeted and executed leases with prominent grocers including Publix, Lidl, Aldi, Whole Foods, Trader Joe’s, Sprouts Farmers Market, and The Fresh Market, expanding retailers such as T.J.
Removed
Maxx, HomeGoods, Ross Dress for Less, Burlington, Old Navy, J.Crew Factory, Dick’s Sporting Goods, and pOpshelf, service and restaurant retailers and other retailers such as Ulta Beauty, REI, Five Below and Total Wine & More. Additionally, we have identified cost-efficient ways to relocate, re-tenant and renegotiate leases at several of our properties, which allows us to attract more suitable tenants.
Removed
Capital and Financing Activities In 2023, we maintained a conservative balance sheet and improved our liquidity to fund future growth. We ended 2023 with approximately $1.1 billion of combined cash and borrowing capacity on the Revolving Facility.
Removed
In addition, as of December 31, 2023, we had $269.6 million of debt principal scheduled to mature through December 31, 2024, which we expect will be satisfied with proceeds from the Notes Due 2034 that were issued in January 2024.
Removed
The three investment grade credit ratings we maintain provide us with access to the unsecured public bond market, which we may continue to use in the future to finance acquisitions, repay maturing debt and fix interest rates.
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Results of Operations As of December 31, 2023, we owned interests in 180 operating retail properties, one office property, two development projects currently under construction, and two additional properties with future redevelopment opportunities.
Removed
The following table sets forth the total operating properties and development projects we owned as of December 31, 2023, 2022 and 2021: Number of Properties 2023 2022 2021 Operating retail properties (1) 180 183 180 Office properties 1 1 1 Active development and redevelopment projects 2 3 8 Future development and redevelopment opportunities 2 1 1 (1) Included within operating retail properties are 10, 11, and 11 properties that contain an office component as of December 31, 2023, 2022 and 2021, respectively.
Removed
The comparability of results of operations for the year ended December 31, 2023 is affected by our development, redevelopment, and operating property acquisition and disposition activities between 2021 through 2023.
Removed
Therefore, we believe it is most useful to review the comparisons of our results of operations for these years (as set forth below under “Comparison of Operating Results for the Years Ended December 31, 2023 and 2022”) in conjunction with the discussion of our activities during those periods, which is set forth below.
Removed
Acquisitions In addition to the 100 properties acquired in the October 2021 merger with RPAI, the following operating properties were acquired during the years ended December 31, 2023, 2022 and 2021: Property Name MSA Acquisition Date GLA Nora Plaza outparcel Indianapolis, IN December 22, 2021 23,722 Pebble Marketplace Las Vegas, NV February 16, 2022 85,796 MacArthur Crossing two-tenant building Dallas, TX April 13, 2022 56,077 Palms Plaza Miami, FL July 15, 2022 68,976 Prestonwood Place Dallas, TX September 22, 2023 155,975 35 Dispositions The following operating and other properties were sold during the years ended December 31, 2023, 2022 and 2021: Property Name MSA Disposition Date GLA Westside Market Dallas, TX October 26, 2021 93,377 Plaza Del Lago (1) Chicago, IL June 16, 2022 100,016 Lincoln Plaza – Lowe’s (2) Worcester, MA October 27, 2022 — Kingwood Commons Houston, TX May 8, 2023 158,172 Pan Am Plaza & Garage Indianapolis, IN June 8, 2023 — Reisterstown Road Plaza Baltimore, MD September 11, 2023 376,683 Eastside Dallas, TX October 24, 2023 43,640 (1) Plaza Del Lago also contains 8,800 square feet of residential space comprised of 18 multifamily rental units.
Removed
(2) We sold the ground lease interest in one tenant at an existing multi-tenant operating retail property. The total number of properties in our portfolio was not affected by this transaction.
Removed
Development and Redevelopment Projects The following properties were under active development or redevelopment during portions of the years ended December 31, 2023, 2022 and 2021 and removed from our operating portfolio during such period: Project Name MSA Transition to Development or Redevelopment (1) Transition to Operating Portfolio GLA Active Projects Carillon MOB (2) Washington, D.C.
Removed
October 2021 Pending 126,000 The Corner – IN (2) Indianapolis, IN December 2015 Pending 24,000 Future Opportunities Hamilton Crossing Centre (2)(3) Indianapolis, IN June 2014 Pending 92,283 Edwards Multiplex – Ontario (2) Los Angeles, CA March 2023 Pending 124,614 Completed Projects Glendale Town Center Indianapolis, IN March 2019 December 2021 199,021 Eddy Street Commons – Phase III South Bend, IN September 2020 March 2022 18,600 Shoppes at Quarterfield Baltimore, MD October 2021 June 2022 58,000 One Loudoun Downtown – Pads G&H Residential Washington, D.C.
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October 2021 June 2022 — Circle East Baltimore, MD October 2021 September 2022 82,000 One Loudoun Downtown – Pads G&H Commercial Washington, D.C. October 2021 December 2022 67,000 The Landing at Tradition – Phase II Port St.
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Lucie, FL September 2021 June 2023 39,900 (1) Transition date represents the date the property was transferred from our operating portfolio into redevelopment status. For legacy RPAI projects, the transition date represents the later of the date of the closing of the merger (October 2021) and the date the project was transferred into redevelopment status.
Removed
(2) This property has been identified as a redevelopment property and is not included in the operating portfolio or the same property pool. The redevelopment projects at Hamilton Crossing Centre and The Corner – IN will include the creation of a mixed-use development. (3) Approximately half of the Hamilton Crossing site was sold in January 2022 to Republic Airways Inc.
Removed
In addition to the sale, the Company entered into a development and construction management agreement for the development of a corporate campus for Republic Airways.
Removed
Phase I of the corporate campus was completed in 2023. 36 Comparison of Operating Results for the Years Ended December 31, 2023 and 2022 The following table reflects changes in the components of our consolidated statements of operations for the years ended December 31, 2023 and 2022 (in thousands) : Year Ended December 31, 2023 2022 Change Revenue: Rental income $ 810,146 $ 782,349 $ 27,797 Other property-related revenue 8,492 11,108 (2,616) Fee income 4,366 8,539 (4,173) Total revenue 823,004 801,996 21,008 Expenses: Property operating 107,958 107,217 741 Real estate taxes 102,426 104,589 (2,163) General, administrative and other 56,142 54,860 1,282 Merger and acquisition costs — 925 (925) Depreciation and amortization 426,361 469,805 (43,444) Impairment charges 477 — 477 Total expenses 693,364 737,396 (44,032) Gain on sales of operating properties, net 22,601 27,069 (4,468) Operating income 152,241 91,669 60,572 Other (expense) income: Interest expense (105,349) (104,276) (1,073) Income tax expense of taxable REIT subsidiary (533) (43) (490) Equity in earnings of unconsolidated subsidiaries 33 256 (223) Other income, net 1,991 240 1,751 Net income (loss) 48,383 (12,154) 60,537 Net income attributable to noncontrolling interests (885) (482) (403) Net income (loss) attributable to common shareholders $ 47,498 $ (12,636) $ 60,134 Property operating expense to total revenue ratio 13.1 % 13.4 % Rental income (including tenant reimbursements) increased $27.8 million, or 3.6%, due to the following (in thousands) : Net change Year Ended December 31, 2022 to 2023 Properties or components of properties sold during 2022 or 2023 $ (7,830) Properties under redevelopment or acquired during 2022 and/or 2023 12,134 Properties fully operational during 2022 and 2023 and other 23,493 Total $ 27,797 The net increase of $23.5 million in rental income for properties that were fully operational during 2022 and 2023 is primarily due to (i) increases in base minimum rent of $14.7 million due to contractual rent changes and tenant reimbursements of $2.9 million due to higher recoverable common area maintenance expenses, (ii) a decrease in bad debt expense of $2.1 million, and (iii) increases in lease termination income of $1.6 million, overage rent of $1.2 million due to improved tenant performance, and $1.0 million in ancillary income.
Removed
The occupancy of the fully operational properties increased from 91.8% for 2022 to 92.0% for 2023. We continued to experience strong leasing volumes in 2023 and generate higher base rent on new leases and renewals.
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The average base rents for new comparable leases signed in 2023 was $27.53 per square foot compared to average expiring base rents of $19.48 per square foot in that period. The average base rents for renewals signed in 2023 was $18.10 per square foot 37 compared to average expiring base rents of $16.74 per square foot in that period.
Removed
For the entire portfolio, the spread between leased and occupied square footage is approximately 280 basis points and represents approximately $31.0 million of NOI, the majority of which is expected to come online in 2024.
Removed
In addition, the ABR per square foot of our operating retail portfolio continued to improve, as it increased to $20.70 per square foot as of December 31, 2023 from $20.02 per square foot as of December 31, 2022. Other property-related revenue primarily consists of parking revenues, gains on the sale of land and other miscellaneous activity.
Removed
This revenue decreased by $2.6 million primarily as a result of lower gains on sales of undepreciated assets of $2.8 million recognized during the year ended December 31, 2023 and a decrease in parking revenue of $1.3 million due to the sale of Pan Am Plaza Garage in June 2023, partially offset by an increase in miscellaneous income of $1.5 million.
Removed
We recorded fee income of $4.4 million and $8.5 million during the years ended December 31, 2023 and 2022, respectively, from property management and development services provided to third parties and unconsolidated joint ventures.
Removed
The decrease in fee income is primarily due to a decrease in development fees earned related to the development of a corporate campus for Republic Airways at Hamilton Crossing Centre.
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Property operating expenses increased $0.7 million, or 0.7%, due to the following (in thousands) : Net change Year Ended December 31, 2022 to 2023 Properties or components of properties sold during 2022 or 2023 $ (2,227) Properties under redevelopment or acquired during 2022 and/or 2023 1,236 Properties fully operational during 2022 and 2023 and other 1,732 Total $ 741 The net increase of $1.7 million in property operating expenses for properties that were fully operational during 2022 and 2023 is primarily due to increases of (i) $3.3 million in non-recoverable operating expenses, the majority of which relates to vacancies caused by retailer bankruptcies, (ii) $0.4 million in landscaping and repairs and maintenance expenses, and (iii) $0.2 million in security expenses, partially offset by a $3.0 million decrease in insurance expense.
Removed
As a percentage of revenue, property operating expenses decreased from 13.4% to 13.1% primarily due to an increase in revenue in 2023.
Removed
Real estate taxes decreased $2.2 million, or 2.1%, due to the following (in thousands) : Net change Year Ended December 31, 2022 to 2023 Properties or components of properties sold during 2022 or 2023 $ (1,854) Properties under redevelopment or acquired during 2022 and/or 2023 2,001 Properties fully operational during 2022 and 2023 and other (2,310) Total $ (2,163) The net decrease of $2.3 million in real estate taxes for properties that were fully operational during 2022 and 2023 is primarily due to a decrease in real estate tax assessments at certain properties in the portfolio in 2023, most notably for certain of our Texas and Illinois properties.
Removed
The majority of real estate tax expense is recoverable from tenants and such recovery is reflected within rental income. General, administrative and other expenses increased $1.3 million, or 2.3%, primarily due to an increase in transportation expenses and consulting fees, partially offset by a decrease in legal expenses and payroll costs due to lower head count.
Removed
The Company did not incur any significant merger and acquisition costs related to the October 2021 merger with RPAI during the year ended December 31, 2023.
Removed
The Company incurred $0.9 million of merger and acquisition costs during the year ended December 31, 2022, primarily consisting of professional fees and technology costs. 38 Depreciation and amortization expense decreased $43.4 million, or 9.2%, due to the following (in thousands) : Net change Year Ended December 31, 2022 to 2023 Properties or components of properties sold during 2022 or 2023 $ (9,444) Properties under redevelopment or acquired during 2022 and/or 2023 6,218 Properties fully operational during 2022 and 2023 and other (40,218) Total $ (43,444) The net increase of $6.2 million in depreciation and amortization at properties under redevelopment or acquired during 2022 and 2023 is primarily due to the reclassification of Edwards Multiplex – Ontario into redevelopment in March 2023 along with the acquisitions of Palms Plaza in July 2022 and Prestonwood Place in September 2023.
Removed
The net decrease of $40.2 million in depreciation and amortization at properties that were fully operational during 2022 and 2023 is primarily due to certain assets with shorter useful lives acquired in the October 2021 merger with RPAI that became fully depreciated during the prior year.
Removed
Based on the results of our evaluations for impairment, we recorded a $0.5 million impairment charge during the year ended December 31, 2023 related to Eastside, a retail operating property in the Dallas MSA that qualified for held-for-sale accounting treatment as of September 30, 2023 and was sold on October 24, 2023.
Removed
No impairment charges were recorded during the year ended December 31, 2022.
Removed
We recorded a net gain on sales of operating properties of $22.6 million for the year ended December 31, 2023 on the sale of Kingwood Commons, the undeveloped land and related parking garage at Pan Am Plaza, Reisterstown Road Plaza, and Eastside compared to a net gain of $27.1 million on the sale of Plaza Del Lago, a portion of Hamilton Crossing Centre and the ground lease interest in Lowe’s at Lincoln Plaza for the year ended December 31, 2022.
Removed
Interest expense increased $1.1 million, or 1.0%, primarily due to higher interest costs related to our variable rate debt, including borrowings on the Revolving Facility that were used to repay mortgages payable at maturity, partially offset by favorable interest rate swaps.
Removed
Management’s discussion of the financial condition, changes in financial condition and results of operations for the year ended December 31, 2022, with comparison to the year ended December 31, 2021, was included in

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−0 removed4 unchanged
Biggest changeReflecting the effects of these hedge agreements, our fixed and variable rate debt would have been $2.6 billion (94%) and $172.0 million (6%), respectively, of our total consolidated indebtedness as of December 31, 2023. As of December 31, 2023, we had $269.6 million of fixed rate debt scheduled to mature in 2024.
Biggest changeReflecting the effects of these hedge agreements, our fixed and variable rate debt would have been $3.1 billion (95%) and $169.6 million (5%), respectively, of our total consolidated indebtedness as of December 31, 2024. As of December 31, 2024, we had $350.0 million of fixed rate debt scheduled to mature in 2025.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Our future income, cash flows and fair values relevant to financial instruments depend upon prevailing interest rates. We are exposed to interest rate changes primarily through our Revolving Facility and unsecured term loans and other property-specific variable-rate mortgages.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Our future income, cash flows and fair values relevant to financial instruments depend upon prevailing interest rates. We are exposed to interest rate changes primarily through our Revolving Facility, unsecured term loans, and other property-specific variable-rate mortgages.
As of December 31, 2023, we had $2.8 billion of outstanding consolidated indebtedness (inclusive of net unamortized debt discounts, premiums and issuance costs of $26.3 million). In addition, we were party to various consolidated interest rate hedge agreements totaling $975.0 million with maturities over various terms through 2026.
As of December 31, 2024, we had $3.2 billion of outstanding consolidated indebtedness (inclusive of net unamortized debt discounts, premiums and issuance costs of $1.3 million). In addition, we were party to various consolidated interest rate hedge agreements totaling $855.0 million with maturities over various terms through 2026.
A 100-basis point change in interest rates on this debt as of December 31, 2023 would change our annual cash flow by $2.7 million. A 100-basis point change in interest rates on our unhedged variable rate debt as of December 31, 2023 would change our annual cash flow by $1.7 million.
A 100-basis point change in interest rates on this debt as of December 31, 2024 would change our annual cash flow by $3.5 million. A 100-basis point change in interest rates on our unhedged variable rate debt as of December 31, 2024 would change our annual cash flow by $1.7 million.

Other KRG 10-K year-over-year comparisons