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Kite Realty Group (KRG)
NYSE:KRG
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Kite Realty Group
(NYSE:KRG)
Rating:66Neutral
Price Target:
$23.50
▲( 9.86% Upside)
Positive Factors
Financial Performance
KRG reported 4Q24 FFO/sh of $0.53, $0.02 ahead of analyst estimate.
Leasing Activity
Leasing volume remains elevated, with a leased rate 160 basis points higher year-over-year.
Negative Factors
Bankruptcies
Recent anchor bankruptcies are driving the lower expectations for 2025.
Future Guidance
Management's initial guidance for 2025 is below analyst and Street expectations.
Kite Realty Group (KRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.70B
Dividend Yield4.91%
Average Volume (3M)2.11M
Price to Earnings (P/E)347.2
Beta (1Y)0.76
Revenue Growth4.37%
EPS Growth-75.82%
CountryUS
Employees227
SectorReal Estate
Sector Strength64
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.11
Shares Outstanding219,812,300
10 Day Avg. Volume1,558,582
30 Day Avg. Volume2,107,961
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)1.50
Price to Sales (P/S)0.00
P/FCF Ratio16.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.80Price Target Upside15.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Kite Realty Group Business Overview & Revenue Model
Company DescriptionKite Realty Group Trust is a full-service, vertically integrated real estate investment trust (REIT) that provides communities with convenient and beneficial shopping experiences. We connect consumers to retailers in desirable markets through our portfolio of neighborhood, community, and lifestyle centers. Using operational, development, and redevelopment expertise, we continuously optimize our portfolio to maximize value and return to our shareholders.
How the Company Makes MoneyKite Realty Group Trust generates revenue primarily through the leasing of its retail properties to a diverse mix of tenants, including national and regional retailers, restaurants, and service providers. The company's revenue model is based on collecting rental income from long-term lease agreements, which often include fixed base rents and variable rents based on a percentage of tenant sales. Additionally, KRG may earn revenue from property management fees and development activities. Strategic acquisitions and redevelopments also contribute to revenue growth, enabling the company to enhance its property portfolio and increase occupancy rates. Partnerships with tenants and local communities play a significant role in maintaining high occupancy levels and ensuring a steady income stream.
Kite Realty Group Financial Statement Overview
Summary
Kite Realty Group demonstrates solid financial health with consistent revenue growth, strong gross and EBITDA margins, and effective cash flow management. While leverage is moderate and capital structure is stable, the low ROE suggests room for improvement in profitability. Overall, the company is positioned well in its industry with sound financial practices.Income Statement
Kite Realty Group's revenue growth is consistent, with a TTM increase of 1.8% from the previous year, indicating stable market demand. The gross profit margin is robust at 62.6%, and the net profit margin has improved to 1.6% in the TTM, signaling better operational efficiency. However, the company's EBIT margin of 22.5% and EBITDA margin of 69.6% are strong, reflecting effective cost management and strong earnings before interest, taxes, depreciation, and amortization.72
Positive
Balance Sheet
The debt-to-equity ratio stands at 0.89, indicating moderate leverage, which is typical for the REIT sector. The equity ratio is healthy at 48.9%, suggesting a stable capital structure. However, return on equity (ROE) is low at 0.4%, highlighting a need for improved profitability to enhance shareholder returns.65
Positive
Cash Flow
Free cash flow has grown by 5.2% in the TTM, illustrating strong cash generation capabilities. The operating cash flow to net income ratio is high at 32.2, reflecting efficient conversion of operations into cash. The free cash flow to net income ratio is favorable at 21.4, indicating strong cash flow relative to profits.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 856.88M | 841.84M | 823.00M | 802.00M | 373.32M | 266.64M | Gross Profit |
| 536.52M | 624.35M | 612.62M | 590.19M | 268.23M | 189.77M | EBIT |
| 193.17M | 111.39M | 130.12M | 66.02M | 33.73M | 35.01M | EBITDA |
| 590.78M | 528.23M | 556.48M | 535.83M | 178.94M | 164.36M | Net Income Common Stockholders |
| 13.64M | 4.07M | 47.50M | -12.15M | -81.72M | -16.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 49.06M | 478.06M | 36.41M | 115.80M | 218.24M | 43.65M | Total Assets |
| 6.68B | 7.09B | 6.94B | 7.34B | 7.61B | 2.61B | Total Debt |
| 2.91B | 3.23B | 3.06B | 3.01B | 3.15B | 1.17B | Net Debt |
| 2.86B | 3.10B | 3.02B | 2.89B | 3.06B | 1.13B | Total Liabilities |
| 3.31B | 3.68B | 3.30B | 3.52B | 3.68B | 1.38B | Stockholders Equity |
| 3.27B | 3.31B | 3.57B | 3.77B | 3.92B | 1.23B |
| Cash Flow | Free Cash Flow | ||||
| 292.39M | 278.08M | 252.07M | 220.74M | 43.04M | 57.25M | Operating Cash Flow |
| 439.51M | 419.03M | 394.65M | 379.28M | 100.35M | 95.52M | Investing Cash Flow |
| 18.18M | -498.99M | -81.73M | -45.15M | -91.03M | -80.84M | Financing Cash Flow |
| -491.52M | 172.09M | -393.46M | -312.53M | 44.46M | -20.90M |
Kite Realty Group Technical Analysis
Negative
21.39
Price Trends
21.79
Negative
22.26
Negative
23.81
Negative
Market Momentum
0.08
Positive
41.25
Neutral
4.95
Positive
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 21.39 is below the 20-day moving average (MA) of 22.31, below the 50-day MA of 21.79, and below the 200-day MA of 23.81, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 41.25 is Neutral, neither overbought nor oversold. The STOCH value of 4.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRG.
Kite Realty Group Risk Analysis
Kite Realty Group disclosed 43 risk factors in its most recent earnings report. Kite Realty Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our UPREIT structure may result in potential conflicts of interest with limited partners in our Operating Partnership, including certain of our officers, whose interests may not be aligned with those of our shareholders. Q4, 2024
2.
REIT distribution requirements may increase our debt. Q4, 2024
3.
Use of artificial intelligence presents risks and challenges that could impact our business. Q4, 2024
Kite Realty Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.73B | 19.13 | 9.35% | 5.64% | 5.40% | -1.33% | |
73 Outperform | $8.04B | 26.58 | 9.85% | 4.74% | 6.07% | 24.23% | |
71 Outperform | $12.97B | 33.49 | 5.83% | 3.87% | 7.39% | 3.41% | |
71 Outperform | $7.54B | 23.52 | 10.99% | 4.54% | 4.58% | 12.65% | |
66 Neutral | $4.70B | 347.24 | 0.81% | 4.91% | 4.37% | -75.82% | |
63 Neutral | $4.70B | 60.67 | 3.09% | 3.55% | 9.27% | 19.51% | |
60 Neutral | $2.76B | 10.33 | 0.49% | 8507.90% | 5.95% | -17.56% |
* Real Estate Sector Average
Performance Comparison
KRG
Kite Realty Group
21.39
1.37
6.84%
NNN
National Retail Properties
41.13
2.51
6.50%
REG
Regency Centers
71.01
14.36
25.35%
FRT
Federal Realty
92.56
-1.44
-1.53%
BRX
Brixmor Property
24.64
3.96
19.15%
PECO
Phillips Edison & Company
33.94
3.85
12.79%
Kite Realty Group Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -0.74%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Positive
The earnings call presented strong financial performance and strategic acquisitions with some concerns over economic uncertainty and increased bad debt reserves. The highlights, particularly the acquisition of Legacy West and strong leasing spreads, outweigh the noted lowlights.Q1-2025 Updates
Positive Updates
Strong First Quarter Operating Results
Kite Realty Group Trust reported a strong start to 2025 with a $0.02 increase in NAREIT and core FFO per share guidance, and a 3.1% same property NOI growth.
Landmark Acquisition of Legacy West
KRG completed a significant acquisition of Legacy West in a joint venture with GIC, enhancing portfolio quality with a 98.7% leased office and 95% leased retail component.
Blended Cash Leasing Spreads
Blended cash leasing spreads in the first quarter were nearly 14%, with non-option renewal spreads at 20%.
Increase in Starting Rents
Starting rents for new shop leases were approximately $41 per square foot, about 20% higher than the current portfolio average.
Negative Updates
Higher Bad Debt
Higher bad debt was noted compared to the unusually low levels in Q1 of 2024, with a general bad debt reserve increase by 15 basis points.
Economic Uncertainty Impact
General economic uncertainty led to an increase in bad debt reserve and shifts in credit disruption assumptions.
Company Guidance
During the Kite Realty Group Trust's first quarter 2025 earnings call, the company reported strong operating results and issued a guidance raise, highlighting a $0.02 increase in both NAREIT and core FFO per share guidance. Blended cash leasing spreads were just under 14%, with non-option renewal spreads at 20%. Starting rents for new shop leases reached nearly $41 per square foot, about 20% above the current portfolio average. Weighted average rent bumps for new and non-option renewal shop leases were 360 basis points, nearly 100 basis points higher than three years ago. The company completed a significant acquisition of Legacy West in a joint venture with GIC, enhancing its portfolio quality and solidifying its position in the lifestyle and mixed-use asset space. The acquisition is immediately accretive to FFO per share and modestly increases pro forma leverage by 0.2 times, maintaining a net debt-to-EBITDA target of 5 to 5.5 times. Additionally, same property NOI grew by 3.1%, driven by a 350 basis point increase from minimum rent and a 90 basis point increase in net recoveries, partially offset by higher bad debt.Kite Realty Group Corporate Events
Executive/Board ChangesShareholder Meetings
Kite Realty Group Holds Annual Shareholder Meeting
Neutral
May 19, 2025
On May 16, 2025, Kite Realty Group Trust held its annual meeting of shareholders, where 11 nominees were elected to the Board of Trustees for one-year terms. Shareholders also approved executive officer compensation and ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
The most recent analyst rating on (KRG) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Kite Realty Group stock, see the KRG Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Kite Realty Group Highlights Strong Financial Performance
Positive
Apr 29, 2025
Kite Realty Group Trust has released materials for analysts and institutional investors, highlighting its financial performance and strategic initiatives as of April 28, 2025. The company reported strong leasing activity and year-over-year growth, despite challenges such as anchor bankruptcies and economic uncertainties. The signed-not-open pipeline increased to $27.5 million, with a significant portion expected to come online in 2025. The company maintains a low leverage position and is well-positioned in the competitive real estate market, focusing on maintaining its REIT status and managing risks associated with its geographical concentration and market conditions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.