Kite Realty Group Trust (KRG) 8-K Results of Operations and Financial Condition

Exhibit 99.2

Kite Realty Group Trust

June 30, 2006

Supplemental Information – June 30, 2006

PAGE NO.	TABLE OF CONTENTS
3	Corporate Profile
4	Contact Information
5	Important Notes
6	Corporate Structure Chart
7	Condensed Consolidated Balance Sheets
8	Consolidated Statements of Operations for the Three and Six Months Ended June 30
9	Funds from Operations and Other Financial Information for the Three and Six Months Ended June 30
10	Market Capitalization
11	Same Property Net Operating Income
12	Net Operating Income by Quarter
13	Summary of Outstanding Debt
14	Schedule of Outstanding Debt
17	Joint Venture Summary
18	Condensed Combined Balance Sheets of Unconsolidated Properties
19	Condensed Combined Statements of Operations of Unconsolidated Properties for the Three and Six Months Ended June 30
20	Top 10 Retail Tenants by Gross Leasable Area
21	Top 25 Tenants by Annualized Base Rent
22	Lease Expirations – Operating Portfolio
23	Lease Expirations – Retail Anchor Tenants
24	Lease Expirations – Retail Shops
25	Lease Expirations – Commercial Tenants
26	Summary Retail Portfolio Statistics
27	Summary Commercial Portfolio Statistics
28	Development Pipeline
29	Geographic Diversification – Operating Portfolio
30	Operating Retail Properties
32	Operating Commercial Properties
33	Retail Operating Portfolio – Tenant Breakdown
34	Acquisition of Other Properties

p. 2 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

CORPORATE PROFILE

General Description

Kite Realty Group Trust commenced operations in August 2004 as the successor to certain businesses of Kite Property Group, a nationally recognized real estate owner and developer.  We are a full-service, vertically integrated real estate company focused primarily on the development, construction, acquisition, ownership and operation of high-quality neighborhood and community shopping centers in selected growth markets in the United States. As of June 30, 2006, we owned interests in 48 operating properties totaling approximately 7.3 million square feet and an additional 1.5 million square feet in 11 properties currently under development.  We are organized as a real estate investment trust (“REIT”) for federal income tax purposes.

Our strategy is to maximize the cash flow of our operating properties, successfully complete the construction and lease-up of our development portfolio and identify additional growth opportunities in the form of new developments and acquisitions.  New investments are focused in the shopping center sector, although we may selectively pursue commercial development or acquisition opportunities in markets where we currently operate and where we believe we can leverage existing infrastructure and relationships to generate attractive risk-adjusted returns.

Company Highlights (as of June 30, 2006)

•	Operating Retail Properties	43
•	Operating Commercial Properties	5
•	Total Properties Under Development1	11
•	States	9
•	Total GLA/NRA (operating)	7,260,917
•	Owned GLA/NRA (operating)	5,157,835
•	Percentage of Owned GLA Leased – Retail Operating	93.0%
•	Percentage of Owned NRA Leased – Commercial Operating	96.9%
•	Total Full-Time Employees	104

Stock Listing

New York Stock Exchange symbol: KRG       

¹ Excludes Kedron Village, a property the Company acquired in April 2006, which currently is under construction with a completion commitment from the seller.

p. 3 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

CONTACT INFORMATION

Corporate Office

30 South Meridian Street, Suite 1100
Indianapolis, IN  46204
1-888-577-5600
317-577-5600
www.kiterealty.com

Investor Relations Contacts:	Analyst Coverage:	Analyst Coverage:
Daniel R. Sink, Chief Financial Officer Kite Realty Group Trust 30 South Meridian Street, Suite 1100 Indianapolis, IN 46204 (317) 577-5609 dsink@kiterealty.com Financial Relations Board Mr. John Waelti (312) 640-6760 jwaelti@financialrelationsboard.com Transfer Agent: LaSalle Bank, National Association 135 South LaSalle Street Chicago, IL 60603-3499 (312) 904-2000 Stock Specialist: Van der Moolen Specialists USA, LLC 45 Broadway 32nd Floor New York, NY 10006 (646) 576-2707	Cantor Fitzgerald Mr. Philip J. Martin (312) 469-7485 pmartin@cantor.com Goldman, Sachs & Co. Mr. Dennis Maloney (212) 902-4351 dennis.maloney@gs.com Harris Nesbitt Mr. Paul E. Adornato, CFA (212) 885-4170 paul.adornato@harrisnesbitt.com Lehman Brothers Mr. David Harris (212) 526-1790 dharris4@lehman.com Raymond James Mr. Paul Puryear (727) 567-2253 paul.puryear@raymondjames.com	RBC Capital Markets Mr. Rich Moore (216) 378-7625 rich.moore@rbccm.com Stifel, Nicholas & Company, Inc. Mr. David M. Fick, CPA (410) 454-5018 dmfick@stifel.com Wachovia Securities Mr. Jeffrey J. Donnelly, CFA (617) 603-4262 jeff.donnelly@wachovia.com

p. 4 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

IMPORTANT NOTES

Interim Information

This Quarterly Financial Supplement contains historical information of Kite Realty Group Trust (the “Company” or “KRG”) and is intended to supplement the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, which should be read in conjunction with this package.  The supplemental information is unaudited, although it reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of operating results for the interim periods.

Forward-Looking Statements

This supplemental information package contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated.  Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements expressed or implied by the forward-looking statements.  Risks, uncertainties and other factors that might cause such differences, some of which could be material, include, but are not limited to:

• national and local economic, business, real estate and other market conditions;

• the ability of tenants to pay rent;

• the competitive environment in which the Company operates;

• financing risks;

• property ownership and management risks;

• the level and volatility of interest rates;

• financial stability of tenants;

• the Company’s ability to maintain its status as a REIT for federal income tax purposes;

• acquisition, disposition, development and joint venture risks;

• potential environmental and other liabilities;

• other factors affecting the real estate industry generally; and

• other risks identified in reports the Company files with the Securities and Exchange Commission (the “SEC”) or in other documents that it publicly disseminates, including, in particular, the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2005, and in our quarterly reports on Form 10-Q.

The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

Funds From Operations

Funds from Operations (“FFO”) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of operating performance. We calculate FFO in accordance with the best practices described in the April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts (NAREIT), which we refer to as the White Paper. The White Paper defines FFO as net income (determined in accordance with generally accepted accounting principles (“GAAP”)), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

Given the nature of our business as a real estate owner and operator, we believe that FFO is helpful to investors in measuring our operational performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance, such as gains (or losses) from sales of property and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of our financial performance, is not an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, and is not indicative of funds available to satisfy our cash needs, including our ability to make distributions. Our computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.

Net Operating Income

Net operating income (“NOI”) is provided here as a supplemental measure of operating performance.  NOI is defined as property revenues less property operating expenses, excluding depreciation and amortization, interest expense and other items.  We believe this presentation of NOI is helpful to investors as a measure of our operational performance because it is widely used in the real estate industry to measure the performance of real estate assets without regard to various items, included in net income, that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending upon accounting methods and book value of assets.  We also believe NOI helps our investors to meaningfully compare the results of our operating performance from period to period by removing the impact of our capital structure (primarily interest expense on our outstanding indebtedness) and depreciation of our basis in our assets from our operating results.  NOI should not, however, be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of our financial performance.

p. 5 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

CORPORATE STRUCTURE CHART – JUNE 30, 2006

p. 6 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	June 30, 2006			December 31, 2005
Assets:
Investment properties, at cost:
Land	$	169,513,693		$	172,509,684
Land held for development		61,341,811			51,340,820
Buildings and improvements		481,030,140			485,129,649
Furniture, equipment and other		5,426,138			5,675,980
Construction in progress and other		120,753,907			65,903,868
		838,065,689			780,560,001
Less: accumulated depreciation		(52,455,552	)		(41,825,911	)
		785,610,137			738,734,090
Cash and cash equivalents		10,750,083			15,208,835
Tenant receivables, including accrued straight-line rent, net of allowance for bad debts		14,898,601			11,302,923
Other receivables		13,961,902			6,082,511
Investments in unconsolidated entities, at equity		1,164,978			1,303,919
Escrow deposits		7,706,098			6,718,198
Other assets		23,424,530			19,879,330
Total Assets	$	857,516,329		$	799,229,806
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness	$	439,156,807		$	375,245,837
Accounts payable and accrued expenses		32,702,300			30,642,822
Deferred revenue and accured liabilities		27,109,721			25,369,152
Minority interest		4,431,111			4,847,801
Total Liabilities		503,399,939			436,105,612
Commitments and Contingencies
Limited Partners’ interests in operating partnership		79,977,187			84,244,814
Shareholders’ Equity:
Preferred shares, $.01 par value, 40,000,000 shares authorized, no shares issued and outstanding		—			—
Common shares, $.01 par value, 200,000,000 shares authorized, 28,808,483 shares and 28,555,187 shares issued and outstanding, respectively		288,085			285,552
Additional paid in capital		290,623,080			288,976,563
Unearned compensation		—			(808,015	)
Accumulated other comprehensive income		677,878			427,057
Accumulated deficit		(17,449,840	)		(10,001,777	)
Total shareholders’ equity		274,139,203			278,879,380
Total Liabilities and Shareholders’ Equity	$	857,516,329		$	799,229,806

p. 7 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

CONSOLIDATED STATEMENTS OF OPERATIONS – T HREE AND SIX MONTHS (UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
Revenue:
Minimum rent	$	16,509,839		$	13,346,462		$	32,244,511		$	25,877,090
Tenant reimbursements		4,417,611			2,871,856			8,113,484			5,495,044
Other property related revenue		944,966			407,589			1,996,667			1,356,089
Construction and service fee revenue		9,036,996			5,590,667			16,933,932			8,679,643
Other income, net		31,312			79,894			85,188			92,458
Total revenue	$	30,940,724		$	22,296,468		$	59,373,782		$	41,500,324
Expenses:
Property operating		3,274,984			2,451,267			6,309,158			5,179,357
Real estate taxes		3,122,720			1,874,849			5,629,634			3,373,230
Cost of construction and services		7,899,325			4,390,955			15,084,689			7,299,339
General, administrative, and other		1,601,176			1,277,102			2,944,713			2,509,371
Depreciation and amortization		7,842,914			5,356,577			15,365,149			10,175,910
Total expenses	$	23,741,119		$	15,350,750		$	45,333,343		$	28,537,207
Operating income	$	7,199,605		$	6,945,718		$	14,040,439		$	12,963,117
Interest expense		(4,615,175	)		(4,742,869	)		(9,185,167	)		(8,501,303	)
Loss on sale of asset		(764,008	)		—			(764,008	)		—
Income tax benefit of taxable REIT subsidiary		150,303			—			137,016			—
Minority interest in income of consolidated subsidiaries		(37,986	)		(51,930	)		(75,510	)		(92,949	)
Equity in earnings of unconsolidated entities		61,749			126,556			149,722			202,351
Limited Partners’ interests in the continuing operations of the Operating Partnership		(454,117	)		(701,701	)		(989,574	)		(1,394,377	)
Income from continuing operations	$	1,540,371		$	1,575,774		$	3,312,918		$	3,176,839
Discontinued operations, net of Limited Partners’ interests		—			175,166			—			388,760
Net income	$	1,540,371		$	1,750,939		$	3,312,918		$	3,565,599
Income per common share – basic:
Continuing operations	$	0.05		$	0.08		$	0.12		$	0.17
Discontinued operations		—			0.01			—			0.02
	$	0.05		$	0.09		$	0.12		$	0.19
Income per common share -  diluted:
Continuing operations	$	0.05		$	0.08		$	0.12		$	0.17
Discontinued operations		—			0.01			—			0.02
	$	0.05		$	0.09		$	0.12		$	0.19
Weighted average common shares outstanding  -  basic		28,690,680			19,148,267			28,631,389			19,148,267
Weighted average common shares outstanding -  diluted		28,802,913			19,262,581			28,753,591			19,262,822
Dividends declared per common share	$	0.1875		$	0.1875		$	0.3750		$	0.3750

p. 8 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

FUNDS FROM OPERATIONS AND OTHER FINANCIAL INFORMATION – THREE AND SIX MONTHS

	Three Months Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
Funds From Operations:
Net income	$	1,540,371		$	1,750,939		$	3,312,918		$	3,565,599
Add: loss on sale of asset, net of tax		458,405			—			458,405			—
Add Limited Partners’ interests in income		454,117			779,669			989,574			1,564,759
Add depreciation and amortization of consolidated entities and discontinued operations, net of minority interest		7,750,309			5,450,335			15,179,002			10,364,038
Add depreciation and amortization of unconsolidated entities		99,651			79,465			201,670			148,631
Funds From Operations of the Kite Portfolio1		10,302,853			8,060,408			20,141,569			15,643,027
Less Limited Partners’ interests in FFO		(2,351,423	)		(2,474,545	)		(4,623,375	)		(4,771,123	)
Funds From Operations allocable to the Company1	$	7,951,430		$	5,585,863		$	15,518,194		$	10,871,904
Basic FFO per share of the Kite Portfolio	$	0.28		$	0.29		$	0.54		$	0.57
Diluted FFO per share of the Kite Portfolio	$	0.28		$	0.29		$	0.54		$	0.57
Basic weighted average common shares outstanding		28,690,680			19,148,267			28,631,389			19,148,267
Diluted weighted average common shares outstanding		28,802,913			19,262,581			28,753,591			19,262,822
Basic weighted average common shares and units outstanding		37,205,848			27,644,198			37,198,019			27,538,947
Diluted weighted average common shares and units outstanding		37,318,081			27,758,512			37,320,221			27,653,503
Other Financial Information:
Recurring capital expenditures2
Tenant improvements	$	62,115		$	162,672		$	1,171,615	3	$	162,672
Leasing commissions		249,747			14,627			523,596	4		51,304
Capital improvements		37,719			339,072			57,426			346,157
Scheduled debt principal payments		596,007			658,244			1,227,281			1,277,003
Straight line rent		536,219			214,004			958,522			538,869
Market rent amortization income from acquired leases		1,241,775			863,459			2,119,611			1,801,488
Market debt adjustment		107,714			359,387			215,428			718,773
Capitalized interest		2,346,271			797,220			3,741,917			1,177,418

1	“Funds From Operations of the Kite Portfolio” represents 100% of the operating performance of the Operating Partnership’s real estate properties and construction and service subsidiaries in which the Company owns an interest. “Funds From Operations allocable to the Company” reflects a reduction for the Limited Partners’ diluted weighted average interests in the Operating Partnership.
2	Excludes tenant improvements and leasing commissions relating to development projects and first generation space.
3	Of this amount, $988,153 represents tenant improvements for Shoe Pavilion at Galleria Plaza and 24 Hour Fitness at Cedar Hill Village.
4	Of this amount, $198,404 represents leasing commissions for Shoe Pavilion at Galleria Plaza and 24 Hour Fitness at Cedar Hill Village.

p. 9 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

MARKET CAPITALIZATION AS OF JUNE 30, 2006

	Percent of Total Equity			Total Market Capitalization		Percent of Total Market Capitalization
Equity Capitalization:
Total Common Shares Outstanding		77.4	%	$	28,808,483
Operating Partnership (“OP”) Units		22.6	%		8,404,615
Combined Common Shares and OP Units		100.0	%		37,213,098
Market Price at June 30, 2006				$	15.40
Total Equity Capitalization				$	573,081,716		56	%
Debt Capitalization:
Company Outstanding Debt				$	439,156,807
Pro-rata Share of Joint Venture Debt					8,471,524
Total Debt Capitalization					447,628,331		44	%
Total Market Capitalization				$	1,020,710,047		100	%

p. 10 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

SAME PROPERTY NET OPERATING INCOME

	Three Months Ended June 30,									Six  Months Ended June 30,
	2006			2005			% Change			2006			2005			% Change
Number of Properties1		36			36						36			36
Occupancy		96.0	%		95.4	%					96.0	%		95.4	%
Property revenues	$	14,573,944		$	13,609,363					$	27,569,494		$	25,975,026
Property operating expenses		4,207,272			3,874,070						7,938,683			7,009,508
Net operating income - same properties (36 properties)		10,366,672			9,735,294			6.5	%		19,630,811			18,965,518			3.5	%
Net operating income – Galleria Plaza and Cedar Hill Village2		—			—						234,257			451,545
Write-off of in-place lease liability at Eagle Creek3		(458,306	)		—						(458,306	)		—
Net operating income – including Galleria Plaza and Cedar Hill Village		9,908,366			9,735,294			1.8	%		19,406,762			19,417,063			-0.1	%
Reconciliation to Most Directly Comparable GAAP Measure:
Net operating income - same properties2		10,366,672			9,735,294						19,630,811			18,965,518
Net operating income - non-same properties		4,968,234			2,609,608						10,863,690			5,536,514
Less pro rata share of same property joint venture NOI		(305,556	)		(333,631	)					(639,318	)		(625,467	)
Net operating income - construction, service, general and administrative and other		13,169			291,024						(449,595	)		(737,538	)
Total Company Net Operating Income		15,042,519			12,302,295						29,405,588			23,139,027
Total other income		23,763			74,626						74,212			109,402
Total other expenses		(12,307,786	)		(10,099,446	)					(24,413,300	)		(18,677,213	)
Loss on sale of asset		(764,008	)		—						(764,008	)
Limited Partners’ interests in the continuing operations of the Operating Partnership		(454,117	)		701,701						989,574			1,394,377
Operating income from discontinued operations, net of Limited Partners’ interests		—			175,166						—			388,760
Net income	$	1,540,371		$	1,750,939					$	3,312,918		$	3,565,599

¹  Same property analysis excludes Glendale Mall as the Company pursues redevelopment of this property.

²  Late in the first quarter of 2006, Shoe Pavilion and 24 Hour Fitness replaced Ultimate Electronics at Galleria Plaza and Cedar Hill Village, respectively. These properties have been excluded from the information presented for the first quarter of 2006 to provide for a more  meaningful comparison of Same Property results.

³  In May 2006, Winn-Dixie rejected its lease with the Company at Eagle Creek. In connection with this lease termination, the Company wrote off all related assets and liabilities, including the in-place lease liability to minimum rent. Also in May 2006, the Company acquired the Winn-Dixie lease for an acquisition cost of $1.35 million.

The Company believes that Net Operating Income is helpful to investors as a measure of its operating performance because it excludes various items included in net income that do not relate to or are not indicative of its operating performance, such as depreciation and amortization and interest expense.  The Company believes that Same Property NOI is helpful to investors as a measure of its operating performance because it includes only the NOI of properties that have been owned for the full period presented, which eliminates disparities in net income due to the redevelopment, acquisition or disposition of properties during the particular period presented, and thus provides a more consistent metric for the comparison of the Company’s properties. NOI and Same Property NOI should not, however, be considered as alternatives to net income (calculated in accordance with GAAP) as an indicator of the Company’s financial performance.

p. 11 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

NET OPERATING INCOME BY QUARTER

	Three Months Ended
	June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005
Revenue:
Minimum rent	$	16,509,839		$	15,734,672		$	14,931,419		$	14,176,125		$	13,346,462
Tenant reimbursements		4,417,611			3,695,873			4,054,644			2,401,869			2,871,856
Other property related revenue		944,966			1,051,701			2,027,454			2,409,900			407,589
Other income, net		31,312			53,876			65,205			57,759			79,894
		21,903,728			20,536,122			21,078,722			19,045,653			16,705,801
Expenses:
Property operating		3,274,984			3,034,174			4,230,328			2,933,662			2,451,267
Real estate taxes		3,122,720			2,506,914			2,480,709			1,604,623			1,874,849
		6,397,704			5,541,088			6,711,037			4,538,285			4,326,116
Net Operating Income – Properties		15,506,024			14,995,034			14,367,685			14,507,368			12,379,685
Other Income (Expense):
Construction and service fee revenue		9,036,996			7,896,936			12,823,385			4,916,773			5,590,667
Cost of construction and services		(7,899,325	)		(7,185,364	)		(10,203,260	)		(4,320,679	)		(4,390,955	)
General, administrative, and other		(1,601,176	)		(1,343,537	)		(1,706,050	)		(1,112,314	)		(1,277,102	)
Depreciation and amortization		(7,842,914	)		(7,522,235	)		(6,175,623	)		(5,439,606	)		(5,356,577	)
		(8,306,419	)		(8,154,200	)		(5,261,548	)		(5,955,826	)		(5,433,967	)
Earnings Before Interest and Taxes		7,199,605			6,840,834			9,106,137			8,551,542			6,945,718
Interest expense		(4,615,175	)		(4,569,992	)		(4,411,460	)		(5,176,657	)		(4,742,869	)
Loss on sale of asset1		(764,008	)		—			—			—			—
Income tax (expense) benefit of taxable REIT subsidiary		150,303			(13,287	)		(809,178	)		(232,285	)		—
Minority interest in income of consolidated subsidiaries		(37,986	)		(37,524	)		(550,599	)		(623,574	)		(51,930	)
Equity in earnings (loss) of unconsolidated entities		61,749			87,973			(26,225	)		76,385			126,556
Limited partners’ interests in the continuing operations of the Operating Partnership		(454,117	)		(535,457	)		(886,925	)		(798,844	)		701,654
Income From Continuing Operations		1,540,371			1,772,547			2,421,750			1,796,567			1,575,822
Operating income from discontinued operations, net of Limited Partners’ interests2		—			—			5,466,250			185,674			175,117
Net income	$	1,540,371		$	1,772,547		$	7,888,000		$	1,982,241		$	1,750,939
NOI/Revenue		70.8	%		73.0	%		68.2	%		76.2	%		74.1	%
Recovery Ratio3		69.0	%		66.7	%		60.4	%		52.9	%		66.4	%

¹  In June 2006, the Company sold Marsh Supermarkets, an asset in its Naperville Marketplace development property in Naperville, Illinois.

²  In December 2005, the Company sold Mid-America Clinical Labs in Indianapolis, Indiana.

³  “Recovery Ratio” is computed by dividing property operating and real estate tax expense by tenant reimbursements.

p. 12 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

SUMMARY OF OUTSTANDING DEBT¹
TOTAL DEBT OUTSTANDING AS OF JUNE 30, 2006

	Outstanding Amount			Ratio			Weighted Average Interest Rate			Weighted Average Maturity (in years)
Fixed Rate Debt:
Consolidated	$	228,291			51	%		6.03	%		7.4
Unconsolidated		8,471			2	%		6.61	%		6.0
Floating Rate Debt (Hedged) 2		50,000			11	%		5.57	%		1.1
Total Fixed Rate Debt		286,762			64	%		5.97	%		6.2
Variable Rate Debt:3
Construction Loans		71,724			16	%		6.99	%		1.5
Other Variable		136,656			31	%		6.79	%		1.1
Floating Rate Debt (Hedged) 2		(50,000	)		-11	%		-6.70	%		-1.1
Total Variable Rate Debt		158,380			36	%		6.91	%		1.3
Net Premiums		2,486			N/A			N/A			N/A
Total	$	447,628			100	%		6.30	%		4.5

SCHEDULE OF MATURITIES BY YEAR AS OF JUNE 30, 2006

	Mortgage Debt				Secured Revolving Credit Facility		Construction Loans		Total Consolidated Outstanding Debt		KRG Share Of Unconsolidated Mortgage Debt		Total Consolidated and Unconsolidated Debt
	Annual Maturity		Term Maturities
2006		1,239		0		0		1,259		2,498		98		2,596
2007		2,703		20,100		111,550		42,193		176,546		204		176,750
2008		2,652		8,292		0		20,900		31,844		218		32,062
2009		2,801		27,452		0		7,372		37,625		2,211		39,836
2010		3,023		0		0		0		3,023		97		3,120
2011		2,986		19,655		0		0		22,641		103		22,744
2012		2,637		35,356		0		0		37,993		109		38,102
2013		2,562		4,027		0		0		6,589		5,431		12,020
2014		2,191		27,567		0		0		29,758		0		29,758
2015		1,740		38,301		0		0		40,041		0		40,041
2016 and beyond		3,827		44,286		0		0		48,113		0		48,113
Net Premiums		0		0		0		0		2,486		0		2,486
Total	$	28,361	$	225,036	$	111,550	$	71,724	$	439,157	$	8,471	$	447,628

1 Dollars in thousands.
2 These debt obligations are hedged by interest rate swap agreements.
3 Variable Rate Debt %, net of swap transactions:
-  Construction	16	%	$	71,724
-  Other Variable	20	%		86,656	(Includes debt on acquisition land held for development)
	36	%	$	158,380

p. 13 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

SCHEDULE OF OUTSTANDING DEBT¹

CONSOLIDATED DEBT AS OF JUNE 30, 2006

Fixed Rate Debt:	Lender/Servicer		Interest Rate			Maturity Date		Balance as of June 30, 2006		Monthly Debt Service as of June 30, 2006
50th & 12th		Wachovia Bank		5.67	%		11/11/14	$	4,607	$	27
176th & Meridian		Wachovia Bank		5.67	%		11/11/14		4,185		25
Boulevard Crossing		Wachovia Bank		5.11	%		12/11/09		12,395		69
Centre at Panola, Phase I		JP Morgan Chase		6.78	%		1/1/22		4,239		37
Cool Creek Commons		Lehman Brothers Bank		5.88	%		4/11/16		18,000		91
Corner Shops, The		Sun Life Assurance Co.		7.65	%		7/1/11		1,834		17
Fox Lake Crossing		Wachovia Bank		5.16	%		7/1/12		12,029		69
Indian River Square		Wachovia Bank		5.42	%		6/11/15		13,300		62
Indiana State Motor Pool		Old National		5.38	%		3/24/08		4,064		19
International Speedway Square		Lehman Brothers Bank		7.17	%		3/11/11		19,571		139
Plaza at Cedar Hill		GECC		7.38	%		2/1/12		26,838		193
Plaza Volente		Wachovia Bank		5.42	%		6/11/15		28,680		134
Preston Commons		Wachovia Bank		5.90	%		3/11/13		4,559		28
Ridge Plaza		Wachovia Bank		5.15	%		10/11/09		16,606		93
Sunland Towne Centre		KeyBank		6.01	%		7/1/16		25,000		125
Thirty South		CS First Boston		6.09	%		1/11/14		22,834		142
Whitehall Pike		Banc One Capital Funding		6.71	%		7/5/18		9,550		77
Subtotal								$	228,291	$	1,347

Floating Rate Debt (Hedged):	Lender		Interest Rate			Maturity Date		Balance as of June 30, 2006		Monthly Debt Service as of June 30, 2006
Collateral Pool Properties2		KeyBank		5.65	%		8/1/07	$	35,000	$	165
Collateral Pool Properties2		KeyBank		5.38	%		8/1/07		15,000		67
Subtotal								$	50,000	$	232
TOTAL CONSOLIDATED FIXED RATE DEBT								$	278,291	$	1,579
TOTAL NET PREMIUMS								$	2,486
Variable Rate Debt: Mortgages	Lender		Interest Rate3			Maturity Date		Balance as of June 30, 2006
Fishers Station Shops4		National City Bank		LIBOR + 275			9/1/08	$	5,006
Traders Point5		Wachovia Bank		LIBOR + 160			3/31/07		20,100
Subtotal								$	25,106

1  Dollars in thousands.

2  The Company entered into $35 million and $15 million fixed rate swap agreements, which are designated as hedges against the revolving credit facility.

3  At June 30, 2006, one-month LIBOR and Prime interest rates were 5.35% and 8.25%, respectively.

4  The Company has a 25% interest in this property. This loan is guaranteed by Kite Realty Group, LP.

5  The Company entered into a short-term variable rate loan used for the acquisition and completion of the Kedron Village project.

p. 14 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

SCHEDULE OF OUTSTANDING DEBT (CONTINUED)¹

Variable Rate Debt: Construction Loans	Servicer		Interest Rate 2		Maturity Date		Total Commitment		Balance as of June 30, 2006
Beacon Hill Shopping Center3		Fifth Third Bank		LIBOR + 150		9/30/07	$	34,800	$	5,665
Bridgewater Marketplace		Home Federal Bank		LIBOR + 160		6/29/08		12,000		2,282
Bridgewater Marketplace Walgreens		LaSalle Bank		LIBOR + 150		10/31/07		4,046		3,169
Cobblestone Plaza4		Wachovia Bank		LIBOR + 160		6/29/09		44,500		7,372
Estero Town Center5		Wachovia Bank		LIBOR + 165		4/1/08		20,460		9,916
Gateway Shopping Center6		Union Bank of California		LIBOR + 150		12/15/07		22,268		5,116
Geist Pavilion		The National Bank of Indianapolis and Busey Bank		LIBOR + 165		5/1/07		10,057		8,684
Naperville Marketplace		LaSalle Bank		LIBOR + 175		6/30/07		14,400		7,324
Red Bank Commons		Huntington Bank		LIBOR + 165		3/31/07		4,960		4,715
Sandifur Plaza7		LaSalle Bank		LIBOR + 165		12/31/06		5,500		1,259
Tarpon Springs Plaza		Wachovia Bank		LIBOR + 175		4/1/08		20,000		8,701
Traders Point II		Huntington Bank		LIBOR + 165		6/28/07		9,587		7,521
Subtotal							$	202,578	$	71,724

Line of Credit	Lender		Interest Rate 2		Maturity Date		Total Available as of June 30, 2006		Balance as of June 30, 2006
Collateral Pool Properties: 8,9,10		Wachovia Bank		LIBOR + 135		8/31/07	$	125,947	$	111,550
Floating Rate Debt (Hedged)
Collateral Pool Properties9		KeyBank		LIBOR + 135		8/1/07			$	(35,000	)
Collateral Pool Properties9		KeyBank		LIBOR + 135		8/1/07				(15,000	)
Subtotal									$	(50,000	)
Total Consolidated Variable Rate Debt									$	158,380
TOTAL DEBT PER CONSOLIDATED BALANCE SHEET									$	439,157

1  Dollars in thousands.

2  At June 30, 2006, one-month LIBOR and Prime interest rates were 5.35% and 8.25%, respectively.

3  The Company has a preferred return, then a 50% interest. This loan is guaranteed by Kite  Realty Group, LP.

4  The Company has a preferred return, then a 50% interest. This loan is guaranteed by Kite Realty Group, LP.

5  The Company has a preferred return, then a 40% interest. This loan is guaranteed by Kite Realty Group, LP.

6  The Company has a preferred return, then a 50% interest. This loan is guaranteed by Kite Realty Group, LP.

7  The Company has a 80% interest in the Walgreens and 95% in the shops. This loan is guaranteed by Kite Realty Group, LP.

8  There are currently 15 properties encumbered under the line of credit and 31 unencumbered properties and available to expand borrowings under the line.  The major unencumbered properties include: 50 S. Morton, Bayport Commons, Bolton Plaza, Centre at Panola Phase II, Circuit City Plaza, Cornelius Gateway Shops, Delray Marketplace, Fishers Station Marsh, Frisco Bridges, Greyhound Commons, Kedron Village, Martinsville Shops, Pipeline Pointe, Shops at Otty, Sunland II, Wal-Mart Plaza, Weston Park, Zionsville Place.

9  The Company entered into a $35 million and $15 million fixed rate swap agreement, which is designated as a hedge against the line of credit.

10  The total amount available for borrowing under the line is $125,947, of which $111,550 was outstanding as of June 30, 2006.

p. 15 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

SCHEDULE OF OUTSTANDING DEBT (CONTINUED)¹

UNCONSOLIDATED DEBT AS OF JUNE 30, 2006  ²

	Lender		Interest Rate			Maturity Date		Balance as of June 30, 2006			Monthly Debt Service as of June 30, 2006
Fixed Rate
The Centre		Sun Life		6.99	%		6/1/2009	$	4,065		$	40
Spring Mill Medical		LaSalle Bank		6.45	%		9/1/2013		12,065			78
TOTAL UNCONSOLIDATED DEBT								$	16,130		$	118
JOINT VENTURE PARTNERS’ SHARE OF TOTAL UNCONSOLIDATED DEBT									(7,659	)
KRG’s SHARE OF TOTAL UNCONSOLIDATED DEBT								$	8,471
TOTAL KRG CONSOLIDATED DEBT								$	439,157
TOTAL KRG UNCONSOLIDATED DEBT									8,471
TOTAL KRG DEBT								$	447,628

¹  Dollars in thousands.

²  The Company owns a 50% interest in Spring Mill Medical and a 60% interest in The Centre.

p. 16 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

JOINT VENTURE SUMMARY – UNCONSOLIDATED PROPERTIES

The Company owns the following two unconsolidated properties with joint venture partners:

Property	Percentage Owned by the Company
The Centre	60%
Spring Mill Medical	50%

p. 17 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

CONDENSED COMBINED BALANCE SHEETS OF UNCONSOLIDATED PROPERTIES
(THE CENTRE AND SPRING MILL MEDICAL)
(Unaudited)

	June 30, 2006			December 31, 2005
Assets:		��
Investment properties, at cost
Land	$	2,552,075		$	2,552,075
Buildings and improvements		14,577,215			14,566,616
Furniture and equipment		10,581			3,290
		17,139,871			17,121,981
Less: accumulated depreciation		(3,023,529	)		(2,793,109	)
		14,116,342			14,328,872
Cash and cash equivalents		800,488			902,443
Tenant receivables, including accrued straight-line rent		142,188			140,124
Other receivables		—			—
Deferred costs, net		641,680			670,319
Prepaid and other assets		325			—
Total Assets	$	15,701,023		$	16,041,758
Liabilities and Accumulated Equity (Deficit):
Mortgage and other indebtedness	$	16,129,993		$	16,299,855
Accounts payable and accrued expenses		558,355			524,792
Due to affiliate		—			—
Total Liabilities		16,688,348			16,824,647
Accumulated equity (deficit)		(987,325	)		(782,889	)
Total Liabilities and Accumulated Equity (Deficit)	$	15,701,023		$	16,041,758

p. 18 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

CONDENSED COMBINED STATEMENTS OF OPERATIONS OF UNCONSOLIDATED PROPERTIES
(THE CENTRE AND SPRING MILL MEDICAL)
(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2006		2005		2006		2005
Total Revenue	$	856,750	$	858,820	$	1,735,257	$	1,689,039
Expenses:
Property operating		217,478		190,712		418,761		424,684
Real estate taxes		68,569		55,670		129,888		111,344
Depreciation and amortization		129,310		148,979		262,550		280,794
Total expenses		415,357		395,361		811,199		816,822
Operating income		441,393		463,459		924,058		872,217
Interest expense		273,602		279,182		546,494		557,536
Net income	$	167,791	$	184,277	$	377,564	$	314,681

p. 19 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

TOP 10 RETAIL TENANTS BY GROSS LEASABLE AREA (GLA)
AS OF JUNE 30, 2006

This Table Includes the Following:
	•	Operating Retail Properties
	•	Operating Commercial Properties
	•	Development Property Tenants open for business or ground lease tenants who commenced paying rent as of June 30, 2006

Tenant	Number of Locations		Total GLA		Number of Leases		Company Owned GLA2		Number of Anchor Owned Locations		Anchor Owned GLA3
Lowe’s Home Improvement1		9		1,242,630		3		128,997		6		1,113,633
Wal-Mart		5		749,649		2		234,649		3		515,000
Federated Department Stores		1		237,455		1		237,455		0		0
Circuit City		4		132,352		4		132,352		0		0
Dominick’s		2		131,613		2		131,613		0		0
Publix		3		129,357		3		129,357		0		0
Dick’s Sporting Goods		2		126,672		2		126,672		0		0
Marsh Supermarkets		2		124,902		2		124,902		0		0
Kmart		1		110,875		1		110,875		0		0
Burlington Coat Factory		1		107,400		1		107,400		0		0
Total		30		2,934,905		21		1,464,272		9		1,628,633

1	A ground lease with Lowe’s was entered into during the first quarter of 2006.  An estimated 165,000 square feet is included in Anchor Owned GLA to account for this property. Also, a ground lease with Lowe’s was entered into during the second quarter of 2006.  An estimated 158,000 square feet is included in Anchor Owned GLA to account for this property.
2	Excludes the estimated size of the structures located on land owned by the Company and ground leased to tenants.
3	Includes the estimated size of the structures located on land owned by the Company and ground leased to tenants.

p. 20 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

TOP 25 TENANTS BY ANNUALIZED BASE RENT^{1, 2}
AS OF JUNE 30, 2006

This Table Includes the Following:
	•	Operating Retail Properties
	•	Operating Commercial Properties
	•	Development Property Tenants open for business or ground lease tenants who commenced paying rent as of June 30, 2006

Tenant	Type of Property		Number of Locations		Leased GLA/NRA6		% of Owned GLA/NRA of the Portfolio			Annualized Base Rent 1,2		Annualized Base Rent per Sq. Ft.		% of Total Portfolio Annualized Base Rent
Lowe’s Home Center5		Retail		3		128,997		2.5	%	$	2,564,000	$	5.67		4.2	%
Circuit City		Retail		4		132,352		2.6	%	$	1,930,190	$	14.58		3.2	%
State of Indiana		Commercial		3		210,393		4.1	%	$	1,663,733	$	7.91		2.7	%
Eli Lilly		Commercial		1		99,542		1.9	%	$	1,642,443	$	16.50		2.7	%
Marsh Supermarkets4		Retail		2		124,902		2.4	%	$	1,633,958	$	13.08		2.7	%
Dominick’s		Retail		2		131,613		2.5	%	$	1,411,728	$	10.73		2.3	%
Dick’s Sporting Goods		Retail		2		126,672		2.4	%	$	1,220,000	$	9.63		2.0	%
HEB		Retail		1		105,000		2.0	%	$	1,155,000	$	11.00		1.9	%
Bed Bath & Beyond		Retail		3		85,895		1.7	%	$	1,056,866	$	12.30		1.7	%
Walgreens		Retail		3		39,070		0.8	%	$	1,031,023	$	26.39		1.7	%
Publix		Retail		3		129,357		2.5	%	$	989,361	$	7.65		1.6	%
Wal-Mart		Retail		2		234,649		4.5	%	$	930,927	$	3.97		1.5	%
Ross Stores		Retail		3		87,656		1.7	%	$	893,821	$	10.20		1.5	%
Office Depot		Retail		3		84,372		1.6	%	$	873,089	$	10.35		1.4	%
Kmart		Retail		1		110,875		2.1	%	$	850,379	$	7.67		1.4	%
UMDA3		Commercial		1		32,256		0.6	%	$	844,402	$	26.18		1.4	%3
Kerasotes5		Retail		2		43,050		0.8	%	$	776,496	$	8.92		1.3	%
A & P		Retail		1		58,732		1.1	%	$	763,516	$	13.00		1.3	%
Old Navy		Retail		3		64,868		1.3	%	$	748,693	$	11.54		1.2	%
Shoe Pavilion		Retail		1		31,396		0.6	%	$	722,108	$	23.00		1.2	%
City Securities		Commercial		1		34,949		0.7	%	$	694,900	$	19.88		1.1	%
Indiana University Healthcare Associates3		Commercial		1		31,175		0.6	%	$	622,201	$	19.96		1.0	%3
Bealls		Retail		2		79,611		1.5	%	$	576,000	$	7.24		1.0	%
Petsmart		Retail		2		50,909		1.0	%	$	537,095	$	10.55		0.9	%
Michaels		Retail		2		47,837		0.9	%	$	527,416	$	11.03		0.9	%
Total						2,306,128		44.4	%	$	26,659,345	$	9.97		43.9	%

1	Annualized Base Rent represents the monthly contractual rent for June 2006 for each applicable tenant, multiplied by 12.
2	Excludes tenants at development properties that are Build-to-Suits for sale.
3	Property held in unconsolidated joint venture. Annualized Base Rent is reflected at 100 percent.
4	Excludes the Marsh Supermarket at Geist Pavilion where the tenant has commenced payment of rent but has not opened for business.
5	Annualized Base Rent Per Sq. Ft. is adjusted to account for the estimated square footage attributed to structures on land owned by the Company and ground leased to tenants.
6	Excludes the estimated size of the structures located on land owned by the Company and ground leased to tenants.

p. 21 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

LEASE EXPIRATIONS – OPERATING PORTFOLIO¹

This Table Includes the Following:
	•	Operating Retail Properties
	•	Operating Commercial Properties
	•	Development Property Tenants open for business or ground lease tenants who commenced paying rent as of June 30, 2006

	Number of Expiring Leases 2		Expiring GLA/NRA 3		% of Total GLA/NRA Expiring			Expiring Annualized Base Rent 4		% of Total Annualized Base Rent			Expiring Annualized Base Rent per Sq. Ft.		Expiring Ground Lease Revenue
2006		52		121,901		2.5	%	$	1,183,508		2.1	%	$	9.71	$	0
2007		82		256,648		5.3	%	$	3,213,514		5.6	%	$	12.52	$	800,000
2008		44		440,321		9.1	%	$	3,272,454		5.7	%	$	7.43	$	0
2009		62		210,433		4.3	%	$	3,190,314		5.6	%	$	15.16	$	0
2010		66		424,149		8.8	%	$	5,192,785		9.1	%	$	12.24	$	0
2011		54		634,011		13.1	%	$	6,086,759		10.7	%	$	9.60	$	0
2012		33		269,439		5.6	%	$	3,714,267		6.5	%	$	13.79	$	85,000
2013		22		198,131		4.1	%	$	2,896,224		5.1	%	$	14.62	$	0
2014		33		343,799		7.1	%	$	4,245,360		7.4	%	$	12.35	$	427,900
2015		38		507,185		10.5	%	$	6,295,171		11.0	%	$	12.41	$	251,500
Beyond		50		1,441,759		29.6	%	$	17,808,528		31.2	%	$	12.35	$	2,139,980
Total		536		4,847,776		100.0	%	$	57,098,884		100.0	%	$	11.78	$	3,704,380

1	Excludes tenants at development properties that are Build-to-Suits for sale.
2	Lease expiration table reflects rents in place as of June 30, 2006 and does not include option periods; 2006 expirations include month-to-month tenants. This column also excludes ground leases.
3	Expiring GLA excludes estimated square footage attributable to non-owned structures on land owned by the Company and ground leased to tenants.
4	Annualized Base Rent represents the monthly contractual rent for June 2006 for each applicable tenant, multiplied by 12. Excludes ground lease revenue.

p. 22 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

LEASE EXPIRATIONS –RETAIL ANCHOR TENANTS¹

This Table Includes the Following:
	•	Operating Retail Properties
	•	Development Property Tenants open for business or ground lease tenants who commenced paying rent as of June 30, 2006

	Number of Expiring Leases 2		Expiring GLA 3		% of Total GLA Expiring			Expiring Annualized Base Rent 4		% of Total Annualized Base Rent			Expiring Annualized Base Rent per Sq. Ft.		Expiring Ground Lease Revenue
2006		1		34,212		0.7	%	$	18,000		0.0	%	$	0.53	$	0
2007		7		104,126		2.2	%	$	817,276		1.4	%	$	7.85	$	800,000
2008		3		342,049		7.1	%	$	1,441,077		2.5	%	$	4.21	$	0
2009		3		69,389		1.4	%	$	669,318		1.2	%	$	9.65	$	0
2010		11		284,459		5.9	%	$	2,622,387		4.6	%	$	9.22	$	0
2011		7		407,087		8.4	%	$	2,089,946		3.7	%	$	5.13	$	0
2012		5		135,399		2.8	%	$	1,172,103		2.1	%	$	8.66	$	0
2013		1		11,960		0.3	%	$	161,460		0.3	%	$	13.50	$	0
2014		6		126,986		2.6	%	$	1,284,007		2.3	%	$	10.73	$	0
2015		11		374,987		7.6	%	$	3,614,475		6.3	%	$	9.54	$	0
Beyond		30		1,312,063		27.0	%	$	14,962,977		26.2	%	$	11.40	$	990,000
Total		85		3,202,717		66.0	%	$	28,853,026		50.6	%	$	9.01	$	1,790,000

1	Retail Anchor Tenants are defined as tenants that occupy 10,000 square feet or more. Excludes tenants at development properties that are Build-to-Suits for sale.
2	Lease expiration table reflects rents in place as of June 30, 2006 and does not include option periods; 2006 expirations include month-to-month tenants. This column also excludes ground leases.
3	Expiring GLA excludes estimated square footage attributable to non-owned structures on land owned by the Company and ground leased to tenants.
4	Annualized base rent represents the monthly contractual rent for June 2006 for each applicable property, multiplied by 12. Excludes ground lease revenue.

p. 23 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

LEASE EXPIRATIONS – RETAIL SHOPS

This Table Includes the Following:
	•	Operating Retail Properties
	•	Development Property Tenants open for business as of June 30, 2006

	Number of Expiring Leases1		Expiring GLA2		% of Total GLA Expiring			Expiring Annualized Base Rent3		% of Total Annualized Base Rent			Expiring Annualized Base Rent per Sq. Ft.		Expiring Ground Lease Revenue
2006		50		86,689		1.8	%	$	1,165,258		2.0	%	$	13.44	$	0
2007		73		148,567		3.0	%	$	2,318,878		4.1	%	$	15.61	$	0
2008		40		90,307		1.9	%	$	1,671,440		2.9	%	$	18.51	$	0
2009		59		141,044		2.9	%	$	2,520,996		4.4	%	$	17.87	$	0
2010		54		130,812		2.7	%	$	2,390,619		4.2	%	$	18.28	$	0
2011		44		127,382		2.6	%	$	2,354,370		4.1	%	$	18.48	$	0
2012		26		96,988		2.0	%	$	1,951,456		3.4	%	$	20.12	$	85,000
2013		17		57,817		1.2	%	$	1,145,133		2.0	%	$	19.81	$	0
2014		25		66,864		1.4	%	$	1,573,003		2.8	%	$	23.53	$	427,900
2015		25		87,091		1.8	%	$	1,901,075		3.3	%	$	21.83	$	251,500
Beyond		18		66,265		1.4	%	$	1,378,947		2.4	%	$	20.81	$	1,149,980
Total		431		1,099,826		22.7	%	$	20,371,175		35.6	%	$	18.52	$	1,914,380

1	Lease expiration table reflects rents in place as of June 30, 2006 and does not include option periods; 2006 expirations include month-to-month tenants. This column also excludes ground leases.
2	Expiring GLA excludes estimated square footage attributable to non-owned structures on land owned by the Company and ground leased to tenants.
3	Annualized Base Rent represents the monthly contractual rent for June 2006 for each applicable property, multiplied by 12. Excludes ground lease revenue.

p. 24 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

LEASE EXPIRATIONS – COMMERCIAL TENANTS

This Table Includes the Following:
	•	Operating Commercial Properties

	Number of Expiring Leases1		Expiring NRA		% of Total NRA Expiring			Expiring Annualized Base Rent2		% of Total Annualized Base Rent			Expiring Annualized Base Rent per Sq. Ft.
2006		1		1,000		0.0	%	$	250		0.0	%	$	0.25
2007		2		3,955		0.1	%	$	77,360		0.1	%	$	19.56
2008		1		7,965		0.2	%	$	159,938		0.3	%	$	20.08
2009		0		0		0.0	%	$	0		0.0	%	$	0.00
2010		1		8,878		0.2	%	$	179,780		0.3	%	$	20.25
2011		3		99,542		2.1	%	$	1,642,443		2.9	%	$	16.50
2012		2		37,052		0.8	%	$	590,708		1.0	%	$	15.94
2013		4		128,354		2.7	%	$	1,589,631		2.8	%	$	12.38
2014		2		149,949		3.0	%	$	1,388,350		2.4	%	$	9.26
2015		2		45,107		0.9	%	$	779,621		1.4	%	$	17.28
Beyond		2		63,431		1.3	%	$	1,466,603		2.6	%	$	23.12
Total		20		545,233		11.3	%	$	7,874,684		13.8	%	$	14.44

1	Lease expiration table reflects rents in place as of June 30, 2006 and does not include option periods; 2006 expirations include month-to-month tenants. This column also excludes ground leases.
2	Annualized Base Rent represents the monthly contractual rent for June 2006 for each applicable property, multiplied by 12.

p. 25 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

SUMMARY RETAIL PORTFOLIO STATISTICS
(INCLUDES JOINT VENTURE PROPERTIES)

Retail Portfolio	6/30/06			3/31/06			12/31/05			9/30/05			6/30/05
Company Owned GLA1 – Operating Retail		4,595,183			4,532,104			4,497,658			4,175,813			3,923,243
Total GLA1 – Operating Retail		6,698,265			6,650,386			6,160,940			5,685,320			5,356,973
Projected Company Owned GLA Under Development2,4		581,281			696,896			690,161			628,100			946,700
Projected Total GLA Under Development4		1,535,081			1,579,358			1,823,561			1,772,825			1,927,802
Number of Operating Retail Properties		43			42			40			37			36
Number of Retail Properties Under Development4		11	4		12			14			13			12
Percentage Leased – Operating Retail		93.0	%		94.8	%		95.3	%		95.6	%		93.8	%
Annualized Base Rent & Ground Lease Revenue - Retail Properties3	$	51,664,411		$	51,480,775		$	50,059,285		$	46,701,031		$	41,304,284

1	Company Owned GLA represents gross leasable area owned by the Company.  Total GLA includes Company Owned GLA, plus square footage attributable to non-owned outlot structures on land owned by the Company and ground leased to tenants, and non-owned anchor space.
2	Projected Company Owned GLA Under Development represents gross leasable area under development that is projected to be owned by the Company.  Projected Total GLA includes Projected Company Owned GLA, plus projected square footage attributable to non-owned outlot structures on land owned by the Company and ground leased to tenants, and non-owned anchor space that is existing or under construction.
3	Annualized Base Rent represents the monthly contractual rent for June 2006 for each applicable tenant, multiplied by 12.
4	Excludes Kedron Village, a property under construction with a completion commitment from the seller. Kedron Village contains 282,125 square feet of total GLA and 157,408 square feet of owned GLA.

p. 26 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

SUMMARY COMMERCIAL PORTFOLIO STATISTICS
(INCLUDES JOINT VENTURE PROPERTIES)

Commercial Portfolio	6/30/06			3/31/06			12/31/05			9/30/05			6/30/05
Company Owned Net Rentable Area (NRA)1		562,652			562,652			562,652			662,652			662,652
NRA under Development		—			—			—			—			—
Number of Operating Commercial Properties		5			5			5			6			6
Number of Commercial Properties under Development		—			—			—			—			—
Percentage Leased – Operating Commercial Properties		96.9	%		97.7	%		97.3	%		97.7	%		97.7	%
Percentage Leased – Commercial Properties under Development		—			—			—			—			—
Annualized Base Rent – Commercial Properties2,3	$	7,874,683		$	7,959,366		$	7,909,489		$	9,624,510		$	9,624,510

1	Company Owned NRA does not include square footage of Union Station Parking Garage, a detached parking garage supporting the Thirty South property that includes 851 parking spaces.  It is operated by Denison Parking, a third party, pursuant to a lease of the entire property.
2	Annualized Base Rent does not include approximately $500,000 in annualized income attributable to the Union Station Parking Garage.
3	Annualized Base Rent includes $779,621 from KRG and subsidiaries as of June 30, 2006.

p. 27 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

DEVELOPMENT PIPELINE
AS OF JUNE 30, 2006

2005 Deliveries/ 2006 Stabilizations	MSA		Type of Property		Opening Date1		Projected Owned GLA2		Projected Total GLA3		Percent of Owned GLA Occupied9			Percent of Owned GLA Pre-Leased/ Committed5			Total Estimated Project Cost4		Cost Incurred as of June 30, 20064		Major Tenants and Non-owned Anchors
Indiana
Geist Pavilion		Indianapolis, IN		Retail		Q1 – Q4 2005 11 Q4 2005		64,300		64,300		71.8	%		84.0	%		11,971		11,084		Marsh Supermarkets/Party Tree
Subtotal								64,300		64,300		71.8	%		84.0	%	$	11,971	$	11,084

2006-2007 Deliveries	MSA		Type of Property		Opening Date1		Projected Owned GLA2		Projected Total GLA3		Percent of Owned GLA Occupied9			Percent of Owned GLA Pre-Leased/ Committed5			Total Estimated Project Cost4		Cost Incurred as of June 30, 20064		Major Tenants and Non-owned Anchors
Florida
Tarpon Springs Plaza		Naples, FL		Retail		Q1 2007		82,550		274,350		0.0	%		96.6	%	$	22,500	$	13,067		Target (non-owned), Staples, Cost Plus, AC Moore
Estero Town Commons 6,7,8		Naples, FL		Retail		Q3 2006		25,600		206,600		0.0	%		92.9	%		20,000		14,155		Lowe’s Home Improvement
Indiana
Beacon Hill Shopping Center 7.8		Crown Point, IN		Retail		Q3 2006		56,000		161,000		0.0	%		27.5	%		17,000		14,834		Strack & VanTil’s (non-owned), Walgreens (non-owned)
Zionsville Place		Indianapolis, IN		Retail		Q3 2006		12,400		42,400		0.0	%		51.6	%		4,550		4,138
Stoney Creek Commons II		Indianapolis, IN		Retail		Q3 2006		49,330		219,530		61.4	%		100.0	%		6,000		4,979		HH Gregg, Office Depot
Bridgewater Marketplace I		Indianapolis, IN		Retail		Q3 2006		40,879		50,879		0.0	%		39.4	%		15,000		6,283		Walgreens (build-to-suit for sale)
Illinois
Naperville Marketplace		Chicago, IL		Retail		Q3 2006		100,000		170,000		0.0	%		35.3	%		16,500		10,392		Caputo’s Fresh Market (non-owned, TJ Maxx)
Oregon
Cornelius Gateway Build-to-Suit For Sale7,8		Portland, OR		Retail		Q2 2006		21,300		36,100		0.0	%		5.7	%		5,400		4,019		Walgreens (non-owned)
Washington
Sandifur Plaza Build-to-Suit for Sale 6,7,8		Tri-Cities, WA		Retail		Q4 2006		27,400		27,400		0.0	%		80.3	%		6,400		2,020		Walgreens (build-to-suit for sale)
Gateway Shopping Center - Phase I & II6,7,8,10		Seattle, WA		Retail		Q1 2007		76,522		282,522		0.0	%		39.4	%		24,300		9,023		Kohl’s (non-owned), Winco (non-owned)
Subtotal								491,981		1,470,781		6.2	%		65.6	%	$	137,650	$	82,910
Total 12								556,281		1,535,081		13.8	%		67.2	%	$	149,621	$	93,994

1	Opening Date is defined as the first date a tenant is open for business or a ground lease payment is made.
2	Projected Owned GLA represents gross leasable area the Company projects it will own. It excludes square footage that the Company projects will be attributable to non-owned outlot structures on land owned by the Company and expected to be ground leased to tenants. It also excludes non-owned anchor space.
3	Projected Total GLA includes Projected Owned GLA, projected square footage attributable to non-owned outlot structures on land that is owned by the Company, and non-owned anchor space that currently exists or is under construction.
4	Dollars in thousands.
5	Excludes land parcels owned by the Company and ground leased to tenants. Includes leases under negotiation for approximately 60,346 square feet for which the Company has signed non-binding letters of intent.
6	Opening Date and Total Estimated Cost based on preliminary siteplan.
7	Owned in a joint venture.
8	The Company owns the following development properties through joint ventures: Cornelius Gateway (80%); Sandifur Plaza (Walgreens 80%; small shops 95%); Beacon Hill (preferred return, then 50%); Gateway Shopping Center (preferred return, then 50% until internal rate of return threshold is reached and then 25%); and Estero Town Commons (preferred return, then 40%).
9	Includes tenants that have taken possession of their space or have begun paying rent.
10	In April 2006, the Company acquired Phase II, consisting of a 93,000 square-foot non-owned anchor, 45,000 square feet of small shops and two outlots.
11	The Phase I building opened Q1 2005. Phase II and Phase III buildings opened Q4 2005.
12	Excludes Kedron Village, a property under construction with a completion commitment from the seller. Kedron Village contains 282,125 square feet of total GLA and 157,408 square feet of owned GLA.

p. 28 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

GEOGRAPHIC DIVERSIFICATION – OPERATING PORTFOLIO1
AS OF JUNE 30, 2006

	Number of Operating Properties		Owned GLA/NRA2		Percent of Owned GLA/NRA			Total Number of Leases		Annualized Base Rent3		Percent of Annualized Base Rent			Annualized Base Rent per Leased Sq. Ft.
Indiana		21		2,182,678		42.3	%		222	$	22,846,792		40.3	%	$	11.78
•     Retail – Mall		1		579,189		11.2	%		37	$	2,115,079		3.7	%	$	4.76
•     Retail		15		1,040,837		20.2	%		164	$	12,857,030		22.7	%	$	13.49
•     Commercial		5		562,652		10.9	%		21	$	7,874,683		13.9	%	$	14.44
Texas		8		1,136,250		22.0	%		96	$	13,814,437		24.4	%	$	12.23
Florida		9		1,001,206		19.4	%		116	$	9,068,198		16.0	%	$	9.81
Illinois		2		231,685		4.5	%		35	$	3,079,366		5.4	%	$	14.11
New Jersey		1		115,088		2.2	%		17	$	1,785,570		3.2	%	$	16.00
Georgia		2		142,707		2.8	%		28	$	1,631,911		2.9	%	$	11.44
Washington		3		102,146		2.0	%		26	$	1,736,070		3.1	%	$	17.16
Ohio		1		236,230		4.6	%		7	$	2,353,767		4.2	%	$	9.96
Oregon		1		9,845		0.2	%		7	$	268,603		0.5	%	$	27.28
Total		48		5,157,835		100.0	%		554	$	56,669,396		100.0	%	$	11.75

1	Excludes tenants at development properties that are Build-to-Suits for sale.
2	Owned GLA/NRA represents gross leasable area or net leasable area owned by the Company. It does not include 23 parcels or outlots owned by the Company and ground leased to tenants, which contain 23 non-owned structures totaling approximately 321,119 square feet. It also excludes the square footage of Union Station Parking Garage.
3	Annualized Base Rent excludes $2,954,380 in annualized ground lease revenue attributable to parcels and outlots owned by the Company and ground leased to tenants. It also excludes approximately $500,000 in 2006 annualized minimum rent attributable to Union Station Parking Garage as well as the leases on development properties.

p. 29 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

OPERATING RETAIL PROPERTIES – TABLE I
AS OF JUNE 30, 2006

Property 1,2	State	MSA	Year Built/ Renovated	Year Added to Operating Portfolio	Acquired, Redeveloped, or Developed	Total GLA2		Owned GLA2		Percentage of Owned GLA Leased3
International Speedway Square	FL	Daytona	1999	1999	Developed		233,901		220,901		98.2	%
King’s Lake Square	FL	Naples	1986	2003	Acquired		85,497		85,497		97.5	%
Wal-Mart Plaza 4	FL	Gainesville	1970	2004	Acquired		177,826		177,826		100.0	%
Waterford Lakes	FL	Orlando	1997	2004	Acquired		77,948		77,948		100.0	%
Shops at Eagle Creek	FL	Naples	1998	2003	Acquired		75,944		75,944		23.8	%10
Eagle Creek Lowe’s	FL	Naples	2006	2006	Developed		165,000		0			*
Circuit City Plaza	FL	Coral Springs	2004	2004	Developed		435,906		45,906		97.1	%
Indian River Square	FL	Vero Beach	1997/2004	2005	Acquired		379,246		144,246		100.0	%
Bolton Plaza	FL	Jacksonville	1986	2005	Acquired		172,938		172,938		93.5	%
Centre at Panola	GA	Atlanta	2001	2004	Acquired		73,079		73,079		100.0	%
Publix at Acworth	GA	Atlanta	1996	2004	Acquired		69,628		69,628		100.0	%
Silver Glen Crossing	IL	Chicago	2002	2004	Acquired		138,162		132,613		94.9	%
Fox Lake Crossing	IL	Chicago	2002	2005	Acquired		99,072		99,072		93.3	%
Glendale Mall	IN	Indianapolis	1958/2000	1999	Redeveloped		724,026		579,189		76.8	%
Cool Creek Commons	IN	Indianapolis	2005	2005	Developed		133,207		120,678		92.8	%
Boulevard Crossing	IN	Kokomo	2004	2004	Developed		214,696		124,696		93.2	%
Traders Point	IN	Indianapolis	2005	2005	Developed		328,278		252,501		94.3	%
Traders Point II	IN	Indianapolis	2005	2005	Developed		46,600		46,600		53.8	%
Hamilton Crossing	IN	Indianapolis	1999	2004	Acquired		87,424		82,424		100.0	%
Fishers Station 5	IN	Indianapolis	1989	2004	Acquired		114,457		114,457		84.4	%
Whitehall Pike	IN	Bloomington	1999	1999	Developed		128,997		128,997		100.0	%
The Centre 6	IN	Indianapolis	1986	1986	Developed		80,689		80,689		88.2	%
The Corner Shops	IN	Indianapolis	1984/2003	1984	Developed		42,545		42,545		100.0	%
Stoney Creek Commons I	IN	Indianapolis	2000	2000	Developed		140,197		0			*
Greyhound Commons	IN	Indianapolis	2005	2005	Developed		153,187		0			*
Weston Park Phase I	IN	Indianapolis	2005	2005	Developed		12,200		0			*
Red Bank Commons	IN	Evansville	2005	2006	Developed		324,264		34,264		78.1	%
Martinsville Shops	IN	Martinsville	2005	2005	Developed		10,986		10,986		100.0	%
50 South Morton	IN	Indianapolis	1999	1999	Developed		2,000		2,000		100.0	%
Ridge Plaza	NJ	Oak Ridge	2002	2003	Acquired		115,088		115,088		96.9	%
Eastgate Pavilion	OH	Cincinnati	1995	2004	Acquired		236,230		236,230		100.0	%
Shops at Otty 7	OR	Portland	2004	2004	Developed		154,845		9,845		100.0	%
Plaza at Cedar Hill	TX	Dallas	2000	2004	Acquired		299,847		299,847		100.0	%
Sunland Towne Centre	TX	El Paso	1996	2004	Acquired		312,539		307,563		99.5	%
Galleria Plaza 8	TX	Dallas	2002	2004	Acquired		44,306		44,306		100.0	%
Cedar Hill Village	TX	Dallas	2002	2004	Acquired		139,092		44,262		94.2	%
Preston Commons	TX	Dallas	2002	2002	Developed		142,564		27,564		90.0	%
Burlington Coat Factory 9	TX	San Antonio	1992/2000	2000	Redeveloped		107,400		107,400		100.0	%
Plaza Volente	TX	Austin	2004	2005	Acquired		160,308		156,308		100.0	%
Market Street Village	TX	Hurst	1970/2004	2005	Acquired		156,000		149,000		100.0	%
50th & 12th	WA	Seattle	2004	2004	Developed		14,500		14,500		100.0	%
176th & Meridian	WA	Seattle	2004	2004	Developed		14,560		14,560		100.0	%
Four Corner Square	WA	Seattle	1985	2004	Acquired		73,086		73,086		98.6	%
					TOTAL		6,698,265		4,595,183		93.0	%

(*)	Property consists of ground leases only, no Owned GLA. As of 6/30/06, the following were leased: Lowe’s at Eagle Creek – single ground lease property; Stoney Creek Commons – one outlot remains to be leased at this property, which will be merged with Stoney Creek II as shown on the Development Pipeline; Greyhound Commons – two of four outlots leased; and Weston Park Phase I – two of three outlots leased.
1	All properties are wholly owned, except as indicated. Unless otherwise noted, each property is owned in fee simple by the Company.
2	Owned GLA represents gross leasable area that is owned by the Company. Total GLA includes Owned GLA, square footage attributable to non-owned anchor space and non-owned structures on ground leases.
3	Percentage of Owned GLA Leased reflects Owned GLA/NRA leased as of June 30, 2006 except for Stoney Creek Commons, Greyhound Commons, Weston Park Phase I (see *) and Eagle Creek Lowe’s Home Improvement.
4	The Company acquired a 99.9% interest in this property through a joint venture with a third party that manages the property. At the current time, The Company receives 85% of the cash flow from the property, a percentage that may decrease under certain circumstances.
5	This property is divided into two parcels: a grocery store and small shops. The Company owns a 25% interest in the small shops in a joint venture and a 100% interest in the grocery store. The joint venture partner is entitled to an annual preferred payment of $96,000. All remaining cash flow is distributed to the Company.
6	The Company owns a 60% interest in this property through a joint venture with a third party that manages the property.
7	The Company does not own the land at this property. It has leased the land pursuant to two ground leases that expire in 2017. The Company has six five-year options to renew this lease.
8	The Company does not own the land at this property. It has leased the land pursuant to a ground lease that expires in 2027. The Company has five five-year renewal options.
9	The Company does not own the land at this property. It has leased the land pursuant to a ground lease that expires in 2012. The Company has six five-year renewal options and a right of first refusal to purchase the land.
10	In May 2006, the Company acquired and terminated the Winn-Dixie lease. The space is being marketed to multiple potential retail tenants.

p. 30 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

OPERATING RETAIL PROPERTIES – TABLE II
AS OF JUNE 30, 2006

Property	State	MSA	Annualized Base Rent Revenue		Annualized Ground Lease Revenue		Annualized Total Retail Revenue 1		Percentage of Annualized Total Retail Revenue			Base Rent Per Leased Owned GLA2		Major Tenants and Non-Owned Anchors3
RETAIL OPERATING PROPERTIES
International Speedway Square 4	FL	Daytona	$	2,422,964	$	232,900	$	2,655,864		5.0	%	$	11.17	SteinMart, Bed, Bath & Beyond, Circuit City
King’s Lake Square	FL	Naples	$	1,065,438	$	0	$	1,065,438		2.1	%	$	12.78	Publix, Walgreens
Wal-Mart Plaza4	FL	Gainesville	$	927,276	$	0	$	927,276		1.8	%	$	5.21	Wal-Mart, Books-A-Million, Save A Lot
Waterford Lakes	FL	Orlando	$	915,834	$	0	$	915,834		1.8	%	$	11.75	Winn-Dixie5
Shops at Eagle Creek	FL	Naples	$	382,603	$	0	$	382,603		0.7	%	$	21.14
Eagle Creek Lowe’s	FL	Naples	$	0	$	800,000	$	800,000		1.6	%			Lowe’s Home Improvement
Circuit City Plaza	FL	Coral Springs	$	881,277	$	0	$	881,277		1.7	%	$	19.78	Circuit City, Wal-Mart (non-owned), Lowe’s Home Improvement (non-owned)
Indian River Square	FL	Vero Beach	$	1,421,952	$	0	$	1,421,952		2.8	%	$	9.86	Office Depot, Bealls, Ragshop, Lowe’s Home Improvement (non-owned), Target (non-owned)
Bolton Plaza 4	FL	Jacksonville	$	1,050,853	$	0	$	1,050,853		2.0	%	$	6.50	Wal-Mart
Centre at Panola	GA	Atlanta	$	834,312	$	0	$	834,312		1.6	%	$	11.42	Publix
Publix at Acworth	GA	Atlanta	$	797,599	$	0	$	797,599		1.5	%	$	11.46	Publix, CVS
Silver Glen Crossing	IL	Chicago	$	1,796,741	$	85,000	$	1,881,741		3.6	%	$	14.28	Dominick’s, MC Sports
Fox Lake Crossing	IL	Chicago	$	1,282,625	$	0	$	1,282,625		2.5	%	$	13.87	Dominick’s
Glendale Mall	IN	Indianapolis	$	2,115,079	$	148,500	$	2,263,579		4.4	%	$	4.76	L.S. Ayres, Kerasotes Theatre, Lowe’s Home Improvement (non-owned)
Cool Creek Commons	IN	Indianapolis	$	1,705,404	$	155,500	$	1,860,904		3.6	%	$	15.24	Fresh Market, Stein Mart
Boulevard Crossing	IN	Kokomo	$	1,541,705	$	0	$	1,541,705		3.0	%	$	13.27	TJ Maxx, PETCO, Shoe Carnival, Kohl’s (non-owned)
Traders Point	IN	Indianapolis	$	3,271,770	$	635,000	$	3,906,770		7.5	%	$	13.74	Dick’s Sporting Goods, Bed Bath & Beyond, Michaels, Marsh Supermarkets, Books-A-Million, Old Navy
Traders Point II	IN	Indianapolis	$	657,113	$	0	$	657,113		1.3	%	$	26.22
Hamilton Crossing	IN	Indianapolis	$	1,396,773	$	71,500	$	1,468,273		2.8	%	$	16.95	Office Depot
Fishers Station	IN	Indianapolis	$	1,181,759	$	0	$	1,181,759		2.3	%	$	12.24	Marsh Supermarket
Whitehall Pike	IN	Bloomington	$	1,014,000	$	0	$	1,014,000		2.0	%	$	7.86	Lowe’s Home Improvement
The Centre 4	IN	Indianapolis	$	904,671	$	0	$	904,671		1.8	%	$	12.71	Osco
The Corner Shops	IN	Indianapolis	$	524,431	$	0	$	524,431		1.0	%	$	12.33	Hancock Fabrics
Stoney Creek Commons	IN	Indianapolis	$	0	$	0	$	0		0.0	%			Lowe’s Home Improvement (non-owned)
Greyhound Commons	IN	Indianapolis	$	0	$	202,500	$	202,500		0.4	%			Lowe’s Home Improvement (non-owned)
Weston Park Phase I	IN	Indianapolis	$	0	$	190,000	$	190,000		0.4	%
Red Bank Commons	IN	Evansville	$	379,784	$	0	$	379,784		0.7	%	$	14.19	Wal-Mart (non-owned) Home Depot (non-owned)
Martinsville Shops	IN	Martinsville	$	147,620	$	0	$	147,620		0.3	%	$	13.44
50 South Morton	IN	Indianapolis	$	132,000	$	0	$	132,000		0.3	%	$	66.00
Ridge Plaza	NJ	Oak Ridge	$	1,785,570	$	0	$	1,785,570		3.5	%	$	16.00	A&P, CVS
Eastgate Pavilion	OH	Cincinnati	$	2,353,767	$	0	$	2,353,767		4.6	%	$	9.96	Dick’s Sporting Goods, Value City Furniture, Best Buy
Shops at Otty	OR	Portland	$	268,603	$	122,500	$	391,103		0.8	%	$	27.28	Wal-Mart (non-owned)
Plaza at Cedar Hill	TX	Dallas	$	3,599,112	$	0	$	3,599,112		7.0	%	$	12.00	Hobby Lobby, Linens ‘N Things, Marshall’s
Sunland Towne Centre	TX	El Paso	$	2,999,572	$	95,280	$	3,094,852		6.0	%	$	9.80	Kmart, Circuit City, Roomstore
Galleria Plaza	TX	Dallas	$	1,081,717	$	0	$	1,081,717		2.1	%	$	24.41	Shoe Pavilion
Cedar Hill Village	TX	Dallas	$	673,085	$	0	$	673,085		1.3	%	$	16.14	24 Hour Fitness, JCPenney (non-owned)
Preston Commons	TX	Dallas	$	590,338	$	0	$	590,338		1.1	%	$	23.80	Lowe’s Home Improvement (non-owned)
Burlington Coat Factory	TX	San Antonio	$	510,150	$	0	$	510,150		1.0	%	$	4.75	Burlington Coat Factory
Plaza Volente	TX	Austin	$	2,449,104	$	100,000	$	2,549,104		4.9	%	$	15.67	H-E-B Grocery
Market Street Village	TX	Hurst	$	1,911,358	$	115,700	$	2,027,058		3.9	%	$	12.83	Ross, Office Depot, JoAnn’s, Circuit City, Hancock Fabrics
50th & 12th	WA	Seattle	$	475,000	$	0	$	475,000		0.9	%	$	32.76	Walgreens
176th & Meridian	WA	Seattle	$	433,000	$	0	$	433,000		0.8	%	$	29.74	Walgreens
Four Corner Square	WA	Seattle	$	828,070	$	0	$	828,070		1.6	%	$	11.49	Johnson Hardware Store
		TOTAL	$	48,710,031	$	2,954,380	$	51,664,411		100.0%		$	11.40

1	Annualized Base Rent represents the contractual rent for June 2006 for each applicable property, multiplied by 12. This table does not include Annualized Base Rent from development property tenants open for business as of June 30, 2006.
2	Owned GLA represents gross leasable area that is owned by the Company. Total GLA includes Owned GLA, square footage attributable to non-owned anchor space and non-owned structures on ground leases.
3	Represents the three largest tenants that occupy at least 10,000 square feet of GLA at the property, including non-owned anchors.
4	A third party manages this property.
5	In February 2005, Winn-Dixie Stores, Inc. filed a petition for Chapter 11 bankruptcy to reorganize its business operations. As of June 30, 2006, Winn-Dixie had not announced plans to close the Waterford Lakes store, nor had it rejected the lease. In a public announcement, Winn-Dixie included the store at Waterford Lakes on its list of stores it intended to retain as of that date.

p. 31 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

OPERATING COMMERCIAL PROPERTIES
AS OF JUNE 30, 2006

Property	MSA	Year Built/ Renovated	Acquired, Redeveloped, or Developed	Owned NRA		Percentage of Owned NRA Leased			Annualized Base Rent1		Percentage of Annualized Commercial Base Rent				Base Rent Per Leased Sq. Ft.	Major Tenants
Indiana
Thirty South4	Indianapolis	1905/2002	Redeveloped		298,346		95.7	%	$	4,901,394		62.3	%	$	17.45	Eli Lilly, City Securities, Kite Realty Group
PEN Products	Indianapolis	2003	Developed		85,875		100.0	%		813,236		10.3	%		9.47	Indiana Department of Administration
Spring Mill Medical2	Indianapolis	1998/2002	Redeveloped		63,431		100.0	%		1,466,603		18.6	%		23.12	University Medical Diagnostic Associates; Indiana University Healthcare Associates
Union Station Parking Garage3	Indianapolis	1986	Acquired		N/A		N/A			N/A		N/A			N/A	Denison Parking
Indiana State Motor Pool	Indianapolis	2004	Developed		115,000		100.0	%		693,450		8.8	%		6.03	Indiana Dept. of Administration
Total					562,652		96.9	%	$	7,874,683		100.0	%	$	14.44

1	Annualized Base Rent represents the monthly contractual rent for June 2006 for each applicable property, multiplied by 12.
2	The Company owns a 50% interest in this property through a joint venture with one of the tenants at this property.
3	Annualized Base Rent for 2006 is approximately $500,000.
4	Annualized Base Rent includes $779,621 from KRG and subsidiaries as of June 30, 2006.

p. 32 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

RETAIL OPERATING PORTFOLIO – TENANT BREAKDOWN1
AS OF JUNE 30, 2006

	Owned Gross Leasable Area								Occupancy
Property	State		Anchors		Shops		Total		Anchors			Shops			Total
ISS		FL		200,401		20,500		220,901		100.0	%		80.4	%		98.2	%
King’s Lake Square		FL		49,805		35,692		85,497		100.0	%		94.0	%		97.5	%
Wal-Mart Plaza		FL		138,323		39,503		177,826		100.0	%		100.0	%		100.0	%
Waterford Lakes		FL		51,703		26,245		77,948		100.0	%		100.0	%		100.0	%
Shops at Eagle Creek		FL		51,703		24,241		75,944		0.0	%		74.7	%		23.8	%
Eagle Creek Lowe’s		FL
Circuit City Plaza		FL		33,014		12,892		45,906		100.0	%		89.5	%		97.1	%
Indian River Square		FL		116,342		27,904		144,246		100.0	%		100.0	%		100.0	%
Bolton Plaza		FL		131,488		41,450		172,938		100.0	%		73.0	%		93.5	%
Centre at Panola		GA		51,674		21,405		73,079		100.0	%		100.0	%		100.0	%
Publix at Acworth		GA		37,888		31,740		69,628		100.0	%		100.0	%		100.0	%
Silver Glen Crossing		IL		78,675		53,938		132,613		100.0	%		87.4	%		94.9	%
Fox Lake Crossing		IL		65,977		33,095		99,072		100.0	%		80.1	%		93.3	%
Glendale Mall		IN		437,702		141,487		579,189		86.5	%		46.6	%		76.8	%
Cool Creek Commons		IN		53,600		67,078		120,678		100.0	%		87.0	%		92.8	%
Boulevard Crossing		IN		74,440		50,256		124,696		100.0	%		83.0	%		93.2	%
Traders Point		IN		211,664		40,837		252,501		100.0	%		64.8	%		94.3	%
Traders Point II		IN		0		46,600		46,600					53.8	%		53.8	%
Hamilton Crossing		IN		30,722		51,702		82,424		100.0	%		100.0	%		100.0	%
Fishers Station		IN		57,000		57,457		114,457		100.0	%		68.9	%		84.4	%
Whitehall Pike		IN		128,997		0		128,997		100.0	%		100.0	%
The Centre		IN		18,720		61,969		80,689		100.0	%		84.7	%		88.2	%
The Corner Shops		IN		12,200		30,345		42,545		100.0	%		100.0	%		100.0	%
Stoney Creek Commons I		IN
Greyhound Commons		IN
Weston Park Phase I		IN
Red Bank Commons		IN		0		34,264		34,264					78.1	%		78.1	%
Martinsville Shops		IN		0		10,986		10,986					100.0	%		100.0	%
50 South Morton		IN		0		2,000		2,000					100.0	%		100.0	%
Ridge Plaza		NJ		69,612		45,476		115,088		100.0	%		92.3	%		97.0	%
Eastgate Pavilion		OH		231,730		4,500		236,230		100.0	%					100.0	%
Shops at Otty		OR		0		9,845		9,845					100.0	%		100.0	%
Plaza at Cedar Hill		TX		227,106		72,741		299,847		100.0	%		100.0	%		100.0	%
Sunland Towne Centre		TX		277,220		30,343		307,563		100.0	%		95.1	%		99.5	%
Galleria Plaza		TX		31,396		12,910		44,306		100.0	%		100.0	%		100.0	%
Cedar Hill Village		TX		32,231		12,031		44,262		100.0	%		78.8	%		94.2	%
Preston Commons		TX		0		27,564		27,564					90.0	%		90.0	%
Burlington Coat Factory		TX		107,400		0		107,400		100.0	%					100.0	%
Plaza Volente		TX		105,000		51,308		156,308		100.0	%		100.0	%		100.0	%
Market Street Village		TX		136,746		12,254		149,000		100.0	%		100.0	%		100.0	%
50th & 12th		WA		14,500		0		14,500		100.0	%					100.0	%
176th & Meridian		WA		14,560		0		14,560		100.0	%					100.0	%
Four Corner Square		WA		20,512		52,574		73,086		100.0	%		98.1	%		98.6	%
Total				3,300,051		1,295,132		4,595,183		96.7	%		83.5	%		93.0	%

	Annualized Base Rent1								Annualized Base Rent per Occupied Sq. Ft.
Property	Anchors		Shops		Ground Leases		Total		Anchors		Shops		Total
ISS	$	2,118,321	$	304,643	$	232,900	$	2,655,864	$	10.57	$	18.49	$	11.17
King’s Lake Square	$	361,793	$	703,645	$	0	$	1,065,438	$	7.26	$	20.97	$	12.78
Wal-Mart Plaza	$	538,544	$	388,732	$	0	$	927,276	$	3.89	$	9.84	$	5.21
Waterford Lakes	$	408,452	$	507,382	$	0	$	915,834	$	7.90	$	19.33	$	11.75
Shops at Eagle Creek	$	0	$	382,603	$	0	$	382,603			$	21.14	$	21.14
Eagle Creek Lowe’s	$	0	$	0	$	800,000	$	800,000
Circuit City Plaza	$	594,252	$	287,025	$	0	$	881,277	$	18.00	$	24.88	$	19.78
Indian River Square	$	942,078	$	479,874	$	0	$	1,421,952	$	8.10	$	17.20	$	9.86
Bolton Plaza	$	621,444	$	429,409	$	0	$	1,050,853	$	4.73	$	14.20	$	6.50
Centre at Panola	$	413,388	$	420,924	$	0	$	834,312	$	8.00	$	19.66	$	11.42
Publix at Acworth	$	337,203	$	460,396	$	0	$	797,599	$	8.90	$	14.51	$	11.46
Silver Glen Crossing	$	812,916	$	983,825	$	85,000	$	1,881,741	$	10.33	$	20.88	$	14.28
Fox Lake Crossing	$	742,241	$	540,384	$	0	$	1,282,625	$	11.25	$	20.40	$	13.87
Glendale Mall	$	1,295,905	$	819,174	$	148,500	$	2,263,579	$	3.42	$	12.41	$	4.76
Cool Creek Commons	$	439,200	$	1,266,204	$	155,500	$	1,860,904	$	8.19	$	21.70	$	15.24
Boulevard Crossing	$	827,460	$	714,245	$	0	$	1,541,705	$	11.12	$	17.12	$	13.27
Traders Point	$	2,645,267	$	626,504	$	635,000	$	3,906,771	$	12.50	$	23.67	$	13.74
Traders Point II	$	0	$	657,113	$	0	$	657,113			$	26.22	$	26.22
Hamilton Crossing	$	345,623	$	1,051,150	$	71,500	$	1,468,273	$	11.25	$	20.33	$	16.95
Fishers Station	$	575,000	$	606,759	$	0	$	1,181,759	$	10.09	$	15.34	$	12.24
Whitehall Pike	$	1,014,000	$	0	$	0	$	1,014,000	$	7.86	$	7.86
The Centre	$	170,352	$	734,319	$	0	$	904,671	$	9.10	$	14.00	$	12.71
The Corner Shops	$	73,200	$	451,231	$	0	$	524,431	$	6.00	$	14.87	$	12.33
Stoney Creek Commons I	$	0	$	0	$	0	$	0
Greyhound Commons	$	0	$	0	$	202,500	$	202,500
Weston Park Phase I	$	0	$	0	$	190,000	$	190,000
Red Bank Commons	$	0	$	379,784	$	0	$	379,784			$	14.19	$	14.19
Martinsville Shops	$	0	$	147,620	$	0	$	147,620			$	13.44	$	13.44
50 South Morton	$	0	$	132,000	$	0	$	132,000			$	66.00	$	66.00
Ridge Plaza	$	986,556	$	799,014	$	0	$	1,785,570	$	14.17	$	19.04	$	16.00
Eastgate Pavilion	$	2,221,017	$	132,750	$	0	$	2,353,767	$	9.58			$	9.96
Shops at Otty	$	0	$	268,603	$	122,500	$	391,103			$	27.28	$	27.28
Plaza at Cedar Hill	$	2,183,961	$	1,415,152	$	0	$	3,599,113	$	9.62	$	19.45	$	12.00
Sunland Towne Centre	$	2,527,022	$	472,550	$	95,280	$	3,094,852	$	9.12	$	16.38	$	9.80
Galleria Plaza	$	722,108	$	359,609	$	0	$	1,081,717			$	27.86	$	24.41
Cedar Hill Village	$	483,465	$	189,620	$	0	$	673,085			$	20.00	$	16.14
Preston Commons	$	0	$	590,338	$	0	$	590,338			$	23.80	$	23.80
Burlington Coat Factory	$	510,150	$	0	$	0	$	510,150	$	4.75			$	4.75
Plaza Volente	$	1,155,000	$	1,294,104	$	100,000	$	2,549,104	$	11.00	$	25.22	$	15.67
Market Street Village	$	1,570,081	$	341,277	$	115,700	$	2,027,058	$	11.48	$	27.85	$	12.83
50th & 12th	$	475,000	$	0	$	0	$	475,000	$	32.76			$	32.76
176th & Meridian	$	433,000	$	0	$	0	$	433,000	$	29.74			$	29.74
Four Corner Square	$	126,672	$	701,398	$	0	$	828,070	$	6.18	$	13.60	$	11.49
Total	$	28,670,671	$	20,039,360	$	2,954,380	$	51,664,411	$	8.99	$	18.52	$	11.40

¹ This table does not include annualized base rent from development property tenants open for business as of June 30, 2006.

p. 33 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06

ACQUISITION OF OTHER PROPERTIES

Name of Operating Property	MSA	Date Acquired	Purchase Price		Assumed/ Related Debt	Total GLA	Owned GLA	Major Tenants and Non-Owned Anchors
Kedron Village1	Atlanta	04/03/06	$	36,900,000	0	282,125	157,408	Target (non-owned), Ross, Bed Bath & Beyond, PETCO

¹ This property is currently under construction with a completion commitment from the seller.  On April 3, 2006, the Company purchased the property with an initial funding of $22,000,000, and on July 31, 2006, the Company funded the remaining purchase price of $14,900,000.  In accordance with the terms of the purchase agreement, the seller remains responsible for the completion of the development.  Currently, the property is approximately 82% leased, the anchor tenants are open for business, and the shop space tenants will open throughout the remainder of 2006.

p. 34 Kite Realty Group Supplemental Financial and Operating Statistics – 6/30/06