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Kite Realty Group (KRG)
NYSE:KRG
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Kite Realty Group
(NYSE:KRG)
65Neutral
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.
Earnings
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
Bankruptcies
Recent anchor bankruptcies are driving the lower expectations for 2025.
Guidance
Management's initial guidance for 2025 is below analyst and Street expectations.
Outlook
The midpoint of the guidance implies a 1.0% decline from 2024.
Kite Realty Group (KRG) vs. S&P 500 (SPY)
Market Cap
$4.95B
Dividend Yield4.67%
Average Volume (3M)2.34M
Price to Earnings (P/E)365.3
Beta (1Y)0.73
Revenue Growth4.09%
EPS Growth-75.82%
CountryUS
Employees227
SectorReal Estate
Sector Strength76
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.06
Shares Outstanding219,812,300
10 Day Avg. Volume2,620,052
30 Day Avg. Volume2,342,479
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.59
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit12.62
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.00Price Target Upside15.56% Upside
Rating ConsensusHold
Number of Analyst Covering8
Kite Realty Group Business Overview & Revenue Model
Company DescriptionKite 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 MoneyKite 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 in the latest period, reducing financial risk. While operational efficiency is commendable, low net profit margins and reduced free cash flow growth are areas of concern. Stability is maintained through strong cash management and a solid equity base.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.72
Positive
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.85
Very Positive
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.78
Positive
| 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 |
| 571.79M | 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
Positive
22.50
Price Trends
21.66
Positive
22.66
Negative
23.87
Negative
Market Momentum
0.14
Negative
61.46
Neutral
51.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRG, the sentiment is Positive. The current price of 22.5 is above the 20-day moving average (MA) of 21.14, above the 50-day MA of 21.66, and below the 200-day MA of 23.87, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 51.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks
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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.85B | 19.40 | 9.35% | 5.56% | 4.97% | -0.26% | |
78 Outperform | $8.34B | 28.21 | 9.58% | 4.55% | 6.21% | 22.32% | |
74 Outperform | $26.51B | 34.45 | 5.83% | 3.77% | 7.35% | ― | |
72 Outperform | $7.48B | 21.95 | 10.99% | 4.36% | 4.58% | 12.65% | |
68 Neutral | $4.92B | 63.55 | 3.09% | 3.39% | 9.27% | 19.51% | |
65 Neutral | $4.95B | 365.26 | 0.81% | 4.67% | 4.09% | -75.82% | |
60 Neutral | $2.79B | 11.37 | 0.20% | 8519.74% | 6.07% | -14.95% |
* Real Estate Sector Average
Performance Comparison
KRG
Kite Realty Group
22.50
2.42
12.05%
NNN
National Retail Properties
41.75
1.86
4.66%
REG
Regency Centers
73.03
16.36
28.87%
FRT
Federal Realty
96.52
-1.43
-1.46%
BRX
Brixmor Property
25.70
4.50
21.23%
PECO
Phillips Edison & Company
35.55
3.83
12.07%
Kite Realty Group Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 4.41%|
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
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.
Spark’s Take on KRG Stock
According to Spark, TipRanks’ AI Analyst, KRG is a Neutral.
Kite Realty Group’s overall score reflects a balance of strengths and challenges. Strong revenue growth and a robust balance sheet with zero debt position the company well against financial risks. However, low net profit margins and high P/E ratio suggest profitability and valuation challenges. The company’s cautious guidance for 2025 highlights potential risks, but optimism remains due to strategic operational gains and liquidity strengths. Technical indicators are mixed, hinting at neutral to bearish market sentiment.
To see Spark’s full report on KRG stock, click here.
Business Operations and StrategyFinancial Disclosures
Kite Realty Group Highlights Strong Financial Performance
Positive
Feb 11, 2025
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.
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.