Kite Realty downgraded to Market Perform from Strong Buy at Raymond James

Raymond James downgraded Kite Realty (KRG) to Market Perform from Strong Buy without a price target Despite record levels of leasing across the sector over the past several years, Kite is expected to deliver “just” 3% cumulative funds from operations growth from 2023 to 2026, the analyst tells investors in a research note. The firm says the company’s largest headwind for earnings growth has been its “outsized exposure” to bankrupt tenants. Raymond James views Kite’s portfolio recycling as “prudent” but says the associated dilution will result in another year of minimal earnings growth in 2026.