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Kite Realty Group Trust (KRG)
:KRG
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Kite Realty Group
(NYSE:KRG)
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Rating:68Neutral
Price Target:
$24.50
▲(9.87% Upside)
Kite Realty Group's overall stock score is driven by strong earnings call performance and solid financials, despite concerns over cash flow growth and leverage. The technical analysis indicates a neutral trend, while the valuation reflects a high P/E ratio balanced by a strong dividend yield. The positive sentiment from the earnings call, including strategic growth initiatives and improved financial guidance, significantly boosts the score.
Positive Factors
Strategic Partnerships
Expanding partnerships with major entities like GIC enhances KRG's market position and provides a robust platform for future growth and asset acquisition.
Leasing Activity
Securing high-profile tenants like Whole Foods and Trader Joe's strengthens KRG's tenant mix, driving foot traffic and ensuring stable long-term rental income.
Financial Guidance
Raising financial guidance reflects management's confidence in operational performance and strategic initiatives, indicating potential for sustained profitability.
Negative Factors
Free Cash Flow Decline
A significant decline in free cash flow growth could limit KRG's ability to invest in new projects or reduce debt, impacting long-term financial flexibility.
Impact of Bankruptcies
Bankruptcies among tenants can disrupt earnings and increase vacancy rates, posing a risk to revenue stability and requiring strategic tenant replacement.
Debt Levels
While manageable, maintaining high debt levels requires careful management to avoid financial strain, especially in a rising interest rate environment.
Kite Realty Group (KRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.84B
Dividend Yield4.8%
Average Volume (3M)1.84M
Price to Earnings (P/E)28.1
Beta (1Y)0.67
Revenue Growth4.03%
EPS GrowthN/A
CountryUS
Employees227
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.50
Shares Outstanding219,858,200
10 Day Avg. Volume2,179,087
30 Day Avg. Volume1,835,459
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue9.47
Enterprise Value/Gross Profit12.77
Enterprise Value/Ebitda13.73
Forecast
1Y Price Target
$25.64Price Target Upside14.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
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 generates revenue primarily through leasing commercial space to retailers and other businesses within its properties. The company's revenue model includes rental income from long-term leases with tenants, which often include percentage rent agreements that allow KRG to earn additional income based on the sales performance of its tenants. Key revenue streams include base rent, common area maintenance fees, and other ancillary income from services provided to tenants. KRG also engages in property development and redevelopment, which can lead to increased asset value and higher future rental income. Additionally, strategic partnerships with retailers and local businesses enhance KRG's market presence and tenant mix, contributing to its overall earnings.
Kite Realty Group Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with strong operational performance and strategic growth initiatives. The expansion of strategic partnerships, successful leasing activity, and improved financial guidance are clear positives. However, challenges such as the impact of bankruptcies and delays in asset sales are noted.Q2-2025 Updates
Positive Updates
Record Leasing Spreads
Blended cash leasing spreads reached 17% in Q2, the highest in five years, with non-option renewals nearly at 20%.
New Anchor Leases
11 new anchor leases were executed, including Whole Foods and Trader Joe's, contributing to more than doubling the new leasing volume sequentially.
Strategic Partnership Expansion
Expanded partnership with GIC, now comprising over $1 billion of gross asset value, including acquisitions and joint ventures.
Guidance Increase
Increased NAREIT and core FFO per share guidance by $0.01, and same-store NOI assumption by 25 basis points.
Successful Asset Sales
Sold 3 noncore assets, improving portfolio quality and reducing exposure to at-risk tenants.
Strong Financial Performance
KRG earned $0.51 of NAREIT FFO per share and $0.50 of core FFO per share with a same-property NOI growth of 3.3%.
Negative Updates
Impact of Bankruptcies
Lease rate declined sequentially due to recent bankruptcies, causing temporary earnings disruption.
Flooding at Eastgate Crossing
Eastgate Crossing in Chapel Hill suffered flooding, although damages are covered by insurance.
City Center Sale Delay
Sale of City Center delayed as an identified buyer backed out, though the property continues to be marketed.
Company Guidance
During the second quarter of 2025, Kite Realty Group Trust reported strong operational performance with a significant highlight being their highest quarterly blended cash leasing spreads in five years at 17%. The company achieved a leasing spread of almost 20% for non-option renewals and 16% over the last year. They executed 11 new anchor leases, including agreements with Whole Foods and Trader Joe's, which contributed to the more than doubling of new leasing volume sequentially. Despite a sequential decline in lease rate due to recent bankruptcies, Kite Realty successfully recaptured over 80% of the affected spaces, with an increase of 30 basis points in small shop lease rates sequentially. The company also raised its NAREIT and core FFO per share guidance by $0.01 and increased its same-store NOI assumption by 25 basis points. Additionally, Kite Realty's strategic initiatives included expanding its partnership with GIC and selling three non-core assets, resulting in over $1 billion in gross transactional activity. The company's net debt-to-EBITDA stood at 5.1x, positioning it well within the peer set.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.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.75
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.70
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 857.13M | 841.84M | 823.00M | 802.00M | 373.32M | 266.64M |
| Gross Profit | 635.58M | 624.35M | 612.62M | 590.19M | 268.23M | 189.77M |
| EBITDA | 590.84M | 528.23M | 436.91M | 535.83M | 234.25M | 164.36M |
| Net Income | 172.60M | 4.07M | 47.50M | -12.64M | -80.81M | -16.02M |
Balance Sheet | ||||||
| Total Assets | 6.86B | 7.09B | 6.94B | 7.34B | 7.61B | 2.61B |
| Cash, Cash Equivalents and Short-Term Investments | 182.04M | 478.06M | 41.43M | 121.97M | 225.66M | 43.65M |
| Total Debt | 3.22B | 3.23B | 3.06B | 3.27B | 3.43B | 1.23B |
| Total Liabilities | 3.44B | 3.68B | 3.30B | 3.52B | 3.68B | 1.38B |
| Stockholders Equity | 3.32B | 3.31B | 3.57B | 3.77B | 3.92B | 1.23B |
Cash Flow | ||||||
| Free Cash Flow | 149.52M | 278.08M | 252.07M | 220.74M | 43.04M | 57.25M |
| Operating Cash Flow | 223.34M | 419.03M | 394.65M | 379.28M | 100.35M | 95.52M |
| Investing Cash Flow | -166.36M | -498.99M | -81.73M | -45.15M | -91.03M | -80.84M |
| Financing Cash Flow | -235.04M | 172.09M | -393.46M | -312.53M | 44.46M | -20.90M |
Kite Realty Group Technical Analysis
Positive
22.30
Price Trends
22.25
Positive
22.25
Positive
22.26
Positive
Market Momentum
-0.06
Positive
50.48
Neutral
52.12
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 22.3 is below the 20-day moving average (MA) of 22.42, above the 50-day MA of 22.25, and above the 200-day MA of 22.26, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 52.12 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.23B | 20.12 | 6.15% | 3.28% | 8.63% | 1412.68% | |
75 Outperform | $3.77B | 37.69 | 15.84% | 3.35% | 10.59% | -1.83% | |
71 Outperform | $4.74B | 64.95 | 3.01% | 3.60% | 10.31% | 14.39% | |
68 Neutral | $4.84B | 28.08 | 5.53% | 4.80% | 4.03% | ― | |
52 Neutral | $4.65B | -30.71 | -15.88% | 3.74% | 4.53% | 40.88% | |
52 Neutral | $6.50M | ― | -16.16% | ― | 0.14% | 99.35% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
KRG
Kite Realty Group
22.30
-2.53
-10.19%
MAC
Macerich
18.20
1.17
6.87%
SKT
Tanger
33.84
2.32
7.36%
WHLR
Wheeler Real Estate Investment
6.26
-18,739.74
-99.97%
IVT
InvenTrust Properties
28.62
1.02
3.70%
PECO
Phillips Edison & Company
34.33
-1.13
-3.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.