Kite Realty Group (KRG) AI Stock Analysis

• Market Cap: $4.46B
• Dividend Yield: 5.08%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 1095.7
• Beta (1Y): 0.75
• Revenue Growth: 2.42%
• EPS Growth: -91.46%
• Country: US
• Employees: 227
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Retail
• EPS (TTM): 0.02
• Shares Outstanding: 219,812,300
• 10 Day Avg. Volume: 2,553,804
• 30 Day Avg. Volume: 2,133,898
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.76
• Price to Cash Flow (P/CF): 10.90
• P/FCF Ratio: 17.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.75
• Price Target Upside: 30.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Kite Realty Group's overall performance is solid, driven by strong revenue growth and a healthy balance sheet. However, challenges such as low profit margins, reduced cash flow growth, and technical indicators suggesting a bearish trend temper the outlook. The high P/E ratio raises valuation concerns, but the dividend yield offers some relief for income investors. The cautious guidance for 2025 reflects the company's balanced approach to navigating future risks.

Positive Factors

Capital Deployment

Kite Realty Group Trust is expected to become more active in capital deployment due to an improved cost of capital and a low leveraged balance sheet.

Financial Performance

KRG reported 4Q24 FFO/sh of $0.53, $0.02 ahead of analyst estimates.

Leasing Activity

Leasing volume remains elevated, with a leased rate 160 basis points higher year-over-year.

Negative Factors

Guidance

Management's initial guidance for 2025 is below analyst and Street expectations.

Market Challenges

Recent anchor bankruptcies are driving the lower expectations for 2025.

Kite Realty Group Business Overview & Revenue Model

Company Description

Kite Realty Group (KRG) is a premier real estate investment trust (REIT) that specializes in the ownership, operation, and redevelopment of high-quality shopping centers and mixed-use properties in the United States. The company focuses on creating vibrant retail and lifestyle destinations that cater to diverse communities by providing essential retail, dining, and entertainment experiences. KRG is committed to sustainable growth by strategically managing a portfolio of properties located in key markets across the country.

How the Company Makes Money

Kite Realty Group makes money primarily through leasing space to tenants in its shopping centers and mixed-use properties. The company generates rental income from a diversified tenant base that includes national and regional retailers, restaurants, and service providers. KRG's revenue streams include base rent, percentage rent from retail sales, and reimbursement for property operating expenses such as maintenance, taxes, and insurance. Additionally, Kite Realty Group may earn income from property redevelopment and sales, as well as strategic partnerships that enhance property value and tenant mix. Successful asset management and strategic acquisitions further contribute to KRG's profitability.

Kite Realty Group Financial Statement Overview

Summary

Kite Realty Group demonstrates strong revenue growth and a healthy balance sheet with zero debt, reducing financial risk. Operational efficiency is commendable, but low net profit margins and reduced free cash flow growth remain concerns.

Income Statement

Kite Realty Group shows strong revenue growth, with a TTM revenue increase from the previous year. The gross profit margin is solid at 62.34% TTM, although the net profit margin is low at 0.48% due to high expenses relative to revenue. EBITDA and EBIT margins are reasonable, indicating operational efficiency, but the decline in net income compared to the previous year affects profitability.

Balance Sheet

The company's balance sheet is robust with zero total debt in the TTM period, significantly reducing financial risk. The equity ratio is 46.70% TTM, suggesting a strong equity base relative to assets. Return on Equity is low at 0.12% TTM, indicating limited income generation from equity, but overall stability and leverage are well-managed.

Cash Flow

Cash flow is healthy with a positive free cash flow of $207.75 million TTM. However, there is a decrease in free cash flow from the previous year. The operating cash flow to net income ratio is strong, showing good cash flow generation relative to income, although free cash flow growth has slowed.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
841.84M	823.00M	802.00M	373.32M	266.64M
	Gross Profit
624.35M	612.62M	590.19M	268.23M	189.77M
	EBIT
111.39M	130.12M	66.02M	33.73M	35.01M
	EBITDA
528.23M	556.48M	535.83M	178.94M	164.36M
	Net Income Common Stockholders
4.07M	47.50M	-12.15M	-81.72M	-16.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
478.06M	36.41M	115.80M	218.24M	43.65M
	Total Assets
7.09B	6.94B	7.34B	7.61B	2.61B
	Total Debt
3.23B	3.06B	3.01B	3.15B	1.17B
	Net Debt
3.10B	3.02B	2.89B	3.06B	1.13B
	Total Liabilities
3.68B	3.30B	3.52B	3.68B	1.38B
	Stockholders Equity
3.31B	3.57B	3.77B	3.92B	1.23B
Cash Flow		Free Cash Flow
278.08M	252.07M	220.74M	43.04M	57.25M
	Operating Cash Flow
419.03M	394.65M	379.28M	100.35M	95.52M
	Investing Cash Flow
-498.99M	-81.73M	-45.15M	-91.03M	-80.84M
	Financing Cash Flow
172.09M	-393.46M	-312.53M	44.46M	-20.90M

Kite Realty Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRG, the sentiment is Negative. The current price of 20.49 is below the 20-day moving average (MA) of 21.50, below the 50-day MA of 21.96, and below the 200-day MA of 23.87, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 52.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRG.

Kite Realty Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NNN	79 Outperform	$7.35B	18.15	9.32%	5.90%	4.97%	-0.26%
FRT	76 Outperform	$7.69B	26.00	9.58%	4.92%	6.21%	22.32%
PECO	72 Outperform	$4.78B	67.77	2.71%	3.49%	8.57%	6.55%
REG	71 Outperform	$12.72B	32.97	5.82%	4.02%	10.15%	3.36%
BRX	70 Outperform	$7.36B	21.59	11.61%	4.59%	3.41%	10.54%
KRG	64 Neutral	$4.46B	1,095.68	0.52%	5.08%	2.42%	-91.46%
Sector *	61 Neutral	$4.21B	15.62	-3.65%	12.27%	6.29%	-21.37%

Kite Realty Group Corporate Events

Kite Realty Group Highlights Strong Financial Performance

Kite Realty Group Trust has announced that it is distributing materials to analysts and investors, aimed at highlighting its current operational and financial status. The company reported year-over-year growth driven by increased base rent and occupancy gains, achieving an all-time high in annual leasing volume. It also received credit rating upgrades and improved its liquidity position, indicating a strong market positioning. The company faces risks such as economic uncertainties, financing challenges, and potential impacts from tenant bankruptcies, but maintains a robust outlook with a focus on growth in grocery-anchored and mixed-use centers.