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

Exhibit 99.2

SUPPLEMENTAL INFORMATION – SEPTEMBER 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 Nine Months Ended September 30
	9			Funds from Operations and Other Financial Information for the Three and Nine Months Ended September 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 – Unconsolidated Operating Properties
	18			Condensed Combined Balance Sheets of Unconsolidated Operating Properties
	19			Condensed Combined Statements of Operations of Unconsolidated Operating Properties for the Three and Nine Months Ended September 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			Other Development Activity
	30			Geographic Diversification – Operating Portfolio
	31			Operating Retail Properties
	33			Operating Commercial Properties
	34			Retail Operating Portfolio – Tenant Breakdown
	35			Acquisition of Other Properties
		p. 2	Kite Realty Group Supplemental Financial and Operating Statistics –9/30/06

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 September 30, 2006, we owned interests in 51 operating properties totaling approximately 7.8 million square feet and an additional 1.6 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 September 30, 2006)

Ø	Operating Retail Properties	46
Ø	Operating Commercial Properties	5
Ø	Total Properties Under Development1	11
Ø	States	9
Ø	Total GLA/NRA (operating)	7,772,236
Ø	Owned GLA/NRA (operating)	5,552,287
Ø	Percentage of Owned GLA Leased – Retail Operating	93.6%
Ø	Percentage of Owned NRA Leased – Commercial Operating	96.9%
Ø	Total Full-Time Employees	110

Stock Listing

New York Stock Exchange symbol: KRG

1	Excludes Kedron Village, a property the Company acquired in April 2006, while under construction. This property opened during the third quarter of 2006 and remained under construction as of September 30, 2006.
	p. 3	Kite Realty Group Supplemental Financial and Operating Statistics –9/30/06

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			BMO Capital Markets	RBC Capital Markets
Kite Realty Group Trust			Mr. Paul E. Adornato, CFA	Mr. Rich Moore
30 South Meridian Street, Suite 1100			(212) 885-4170	(216) 378-7625
Indianapolis, IN  46204			paul.adornato@bmo.com	rich.moore@rbccm.com
(317) 577-5609
dsink@kiterealty.com			Cantor Fitzgerald	Stifel, Nicholas & Company, Inc.
			Mr. Philip J. Martin	Mr. David M. Fick, CPA
Financial Relations Board			(312) 469-7485	(410) 454-5018
Mr. John Waelti			pmartin@cantor.com	dmfick@stifel.com
(312) 640-6760
jwaelti@frbir.com			Goldman, Sachs & Co.	Wachovia Securities
			Mr. Dennis Maloney	Mr. Jeffrey J. Donnelly, CFA
			(212) 902-1970	(617) 603-4262
Transfer Agent:			dennis.maloney@gs.com	jeff.donnelly@wachovia.com
LaSalle Bank, National Association			Lehman Brothers
135 South LaSalle Street			Mr. David Harris
Chicago, IL  60603-3499			(212) 526-1790
(312) 904-2000			dharris4@lehman.com
Stock Specialist:			Raymond James
			Mr. Paul Puryear
Van der Moolen Specialists USA, LLC			(727) 567-2253
45 Broadway			paul.puryear@raymondjames.com
32nd Floor
New York, NY  10006
(646) 576-2707
	p. 4	Kite Realty Group Supplemental Financial and Operating Statistics –9/30/06

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 September 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 the 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 –9/30/06

CORPORATE STRUCTURE CHART – SEPTEMBER 30, 2006

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

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	September 30, 2006			December 31, 2005
Assets:
Investment properties, at cost:
Land	$	191,122,886		$	172,509,684
Land held for development		19,034,512			51,340,820
Buildings and improvements		560,470,407			485,129,649
Furniture, equipment and other		5,458,042			5,675,980
Construction in progress and other		196,016,436			65,903,868
		972,102,283			780,560,001
Less accumulated depreciation		(58,933,666	)		(41,825,911	)
		913,168,617			738,734,090
Cash and cash equivalents		21,271,444			15,208,835
Tenant receivables, including accrued straight-line rent of $4.2 million and $3.3 million, respectively, net of allowance for bad debts		13,102,056			11,302,923
Other receivables		10,267,549			6,082,511
Investments in unconsolidated entities, at equity		1,163,902			1,303,919
Escrow deposits		9,136,113			6,718,198
Deferred costs, net		19,642,799			17,380,288
Prepaid and other assets		4,305,182			2,499,042
Total Assets	$	992,057,662		$	799,229,806
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness	$	571,029,648		$	375,245,837
Accounts payable and accrued expenses		30,197,252			30,642,822
Deferred revenue and other liabilities		35,325,539			25,369,152
Minority interest		4,318,257			4,847,801
Total Liabilities		640,870,696			436,105,612
Commitments and Contingencies
Limited Partners’ interests in operating partnership		79,358,294			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, 28,838,534 shares and 28,555,187 shares issued and outstanding		288,385			285,552
Additional paid in capital		290,987,222			288,976,563
Unearned compensation		—			(808,015	)
Accumulated other comprehensive income		411,383			427,057
Accumulated deficit		(19,858,318	)		(10,001,777	)
Total Shareholders’ Equity		271,828,672			278,879,380
Total Liabilities and Shareholders’ Equity	$	992,057,662		$	799,229,806

p. 7 Kite Realty Group Supplemental Financial and Operating Statistics –9/30/06

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

			Three Months Ended September 30,						Nine Months Ended September 30,
			2006			2005			2006			2005
Revenue:
Minimum rent			$	17,262,427		$	14,299,487		$	49,506,938		$	40,176,577
Tenant reimbursements				3,787,767			2,401,870			11,901,251			7,896,914
Other property related revenue				1,565,787			2,409,900			3,562,454			3,765,989
Construction and service fee revenue				10,293,822			4,793,407			27,227,754			13,473,050
Other income, net				158,632			57,759			243,820			150,217
Total revenue				33,068,435			23,962,423			92,442,217			65,462,747
Expenses:
Property operating				3,439,853			2,933,660			9,749,011			8,113,017
Real estate taxes				2,323,799			1,604,623			7,953,433			4,977,853
Cost of construction and services				7,795,070			4,320,678			22,879,759			11,620,017
General, administrative, and other				1,305,599			1,112,313			4,250,312			3,621,683
Depreciation and amortization				7,209,586			5,439,607			22,574,735			15,615,518
Total expenses				22,073,907			15,410,881			67,407,250			43,948,088
Operating income				10,994,528			8,551,542			25,034,967			21,514,659
Interest expense				(6,139,761	)		(5,176,658	)		(15,324,928	)		(13,677,961	)
Loss on sale of asset				—			—			(764,008	)		—
Income tax expense of taxable REIT subsidiary				(777,600	)		(232,285	)		(640,584	)		(232,285	)
Minority interest in income of consolidated subsidiaries				(2,993	)		(623,574	)		(78,503	)		(716,523	)
Equity in earnings of unconsolidated entities				72,261			76,385			221,983			278,736
Limited Partners’ interests in the continuing operations of the Operating Partnership				(936,782	)		(798,408	)		(1,926,356	)		(2,192,785	)
Income from continuing operations				3,209,653			1,797,002			6,522,571			4,973,841
Discontinued operations, net of Limited Partners’ interests				—			185,239			—			573,999
Net income			$	3,209,653		$	1,982,241		$	6,522,571		$	5,547,840
Income per common share – basic:
Continuing operations			$	0.11		$	0.09		$	0.23		$	0.26
Discontinued operations				—			0.01			—			0.03
			$	0.11		$	0.10		$	0.23		$	0.29
Income per common share - diluted:
Continuing operations			$	0.11		$	0.09		$	0.23		$	0.26
Discontinued operations				—			0.01			—			0.03
			$	0.11		$	0.10		$	0.23		$	0.29
Weighted average common shares outstanding - basic				28,824,698			19,151,910			28,696,534			19,149,495
Weighted average common shares outstanding - diluted				28,979,356			19,289,737			28,830,042			19,262,229
Dividends declared per common share			$	0.1950		$	0.1875		$	0.5700		$	0.5625
	p. 8	Kite Realty Group Supplemental Financial and Operating Statistics –9/30/06

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

		Three Months Ended September 30,						Nine Months Ended September 30,
Funds from Operations:		2006			2005			2006			2005
Net income		$	3,209,653		$	1,982,241		$	6,522,571		$	5,547,840
Loss on sale of asset, net of tax			—			—			458,405			—
Add Limited Partners’ interests in income			936,782			881,407			1,926,356			2,446,166
Add depreciation and amortization of consolidated entities and discontinued operations, net of minority interest			7,129,692			5,531,581			22,308,695			15,895,620
Add depreciation and amortization of unconsolidated entities	��		99,680			50,534			301,350			199,165
Funds from Operations of the Kite Portfolio1			11,375,807			8,445,763			31,517,377			24,088,791
Less Limited Partners’ interests in FFO			(2,560,851	)		(2,609,741	)		(7,184,226	)		(7,371,170	)
Funds from Operations allocable to the Company1		$	8,814,956		$	5,836,022		$	24,333,151		$	16,717,621
Basic FFO per share of the Kite Portfolio		$	0.31		$	0.30		$	0.85		$	0.87
Diluted FFO per share of the Kite Portfolio		$	0.30		$	0.30		$	0.84		$	0.87
Basic weighted average common shares outstanding			28,824,698			19,151,910			28,696,534			19,149,495
Diluted weighted average common shares outstanding			28,979,356			19,289,737			28,830,042			19,262,229
Basic weighted average common shares and units outstanding			37,228,944			27,733,221			37,208,441			27,604,417
Diluted weighted average common shares and units outstanding			37,383,601			27,871,048			37,341,949			27,717,151
Other Financial Information:
Recurring capital expenditures2
Tenant improvements		$	67,289		$	81,319		$	1,238,904	3	$	243,991
Leasing commissions			62,489			74,891			586,086	4		126,195
Capital improvements			95,426			73,509			152,852			419,666
Scheduled debt principal payments			604,487			693,835			1,831,768			1,970,838
Straight line rent			366,846			899,384			1,325,368			1,438,252
Market rent amortization income from acquired leases			1,058,379			848,561			3,177,990			2,650,049
Market debt adjustment			107,714			359,386			323,143			1,078,159
Capitalized interest			3,255,161			994,523			6,997,077			2,171,941

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 –9/30/06

MARKET CAPITALIZATION AS OF SEPTEMBER 30, 2006

	Percent of Total Equity			Total Market Capitalization		Percent of Total Market Capitalization
Equity Capitalization:
Total Common Shares Outstanding		77.4	%	$	28,838,534
Operating Partnership (“OP”) Units		22.6	%		8,402,615
Combined Common Shares and OP Units		100.0	%		37,421,149
Market Price at September 30, 2006				$	17.04
Total Equity Capitalization				$	634,589,186		52	%
Debt Capitalization:
Company Outstanding Debt				$	571,029,648
Pro-rata Share of Joint Venture Debt					8,424,155
Total Debt Capitalization					579,453,803		48	%
Total Market Capitalization				$	1,214,042,989		100	%

p. 10 Kite Realty Group Supplemental Financial and Operating Statistics –9/30/06

SAME PROPERTY NET OPERATING INCOME (NOI)

			Three Months Ended September 30,									Nine Months Ended September 30,
			2006			2005			% Change			2006			2005			% Change
Number of Properties1				41			41						41			41
Occupancy				97.5	%		97.6	%					97.5	%		97.6	%
Minimum rent2			$	12,149,208		$	12,074,153					$	33,163,117		$	32,849,768
Tenant recoveries				2,376,335			2,388,828						7,264,314			6,510,446
Other income				66,826			10,211						344,694			180,174
Pro rata share of revenue – unconsolidated joint venture properties				460,704			465,430						1,392,136			1,373,259
				15,053,073			14,938,622						42,164,261			40,913,648
Property operating				2,461,871			2,296,661						6,564,053			6,234,434
Real estate taxes				1,533,017			1,745,452						5,077,404			4,534,824
Pro rata share of expenses – unconsolidated joint venture properties				144,392			171,425						436,506			453,787
				4,139,280			4,213,537						12,077,962			11,223,045
Net operating income - same properties (41 properties)				10,913,794			10,725,085			1.8	%		30,086,299			29,690,603			1.3	%
Net operating income – Galleria Plaza and Cedar Hill Village3				336,158			(202,004	)					570,415			249,541
Net operating (loss) – Shops at Eagle Creek4				(32,900	)		111,677						(32,900	)		111,677
Net operating income – including Galleria Plaza, Cedar Hill Village and Shops at Eagle Creek				11,217,051			10,634,758			5.5	%		30,623,813			30,051,821			1.9	%
Reconciliation to Most Directly Comparable GAAP Measure:
Net operating income - same properties3				10,913,794			10,725,085						30,086,299			29,690,603
Net operating income - non-same properties				7,668,551			2,799,440						18,990,547			8,335,954
Less pro rata share of same property joint venture NOI				(316,312	)		(294,005	)					(955,630	)		(919,472	)
Net operating income - construction, service, general and administrative and other				(61,918	)		637,262						(511,514	)		(100,277	)
Total Company Net Operating Income				18,204,114			13,867,782						47,609,702			37,006,809
Total other income (expense)				69,268			(547,189	)					143,480			(437,787	)
Total other expenses				(14,126,947	)		(10,848,550	)					(38,540,247	)		(29,525,763	)
Loss on sale of asset				—			—						(764,008	)		—
Limited Partners’ interests in the continuing operations of the Operating Partnership				936,782			881,407						1,926,356			2,275,784
Operating income from discontinued operations, net of Limited Partners’ interests				—			268,238						—			656,998
Net income			$	3,209,653		$	1,858,874					$	6,522,571		$	5,424,473
1	Same property analysis excludes Glendale Mall and Shops at Eagle Creek for the third quarter as the Company pursues redevelopment of these properties. See (3) below.
2	For the year-to-date September 30, 2006 period, minimum rent excludes the write-off of the in-place lease liability of approximately $458,000 related to Winn-Dixie at Shops at Eagle Creek. See note (4) below.
3	Late in the first quarter of 2006, Shoe Pavilion and 24 Hour Fitness replaced Ultimate Electronics at Galleria Plaza and Cedar Hill Village, respectively. Ultimate Electronics ceased paying rent at these properties in the months of May 2005 and June 2005, respectively.  As a result of the timing of the re-tenanting of these spaces in Galleria Plaza and Cedar Hill Village, these properties have been excluded from the information presented for the first and third quarters in order to provide for a more meaningful comparison of Same Property results.
4	In May 2006, Winn-Dixie rejected its lease with the Company at Shops 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. During the third quarter of 2006, the Company began the process of re-tenanting the space formerly occupied by Winn-Dixie.  As a result, Shops at Eagle Creek has been excluded from the Same Property analysis for the third quarter.
The Company believes that NOI 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 indicators of the Company’s financial performance.
	p. 11	Kite Realty Group Supplemental Financial and Operating Statistics –9/30/06

NET OPERATING INCOME BY QUARTER

	Three Months Ended
	September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005
Revenue:
Minimum rent	$	17,262,427		$	16,509,839		$	15,734,672		$	14,931,419		$	14,299,487
Tenant reimbursements		3,787,767			4,417,611			3,695,873			4,054,644			2,401,870
Other property related revenue		1,565,787			944,966			1,051,701			2,027,454			2,409,900
Other income, net		158,632			31,312			53,876			65,205			57,759
		22,774,613			21,903,728			20,536,122			21,078,722			19,169,016
Expenses:
Property operating		3,439,853			3,274,984			3,034,174			4,230,328			2,933,660
Real estate taxes		2,323,799			3,122,720			2,506,914			2,480,709			1,604,623
		5,763,652			6,397,704			5,541,088			6,711,037			4,538,283
Net Operating Income – Properties		17,010,961			15,506,024			14,995,034			14,367,685			14,630,733
Other Income (Expense):
Construction and service fee revenue1		10,293,822			9,036,996			7,896,936			12,823,385			4,793,407
Cost of construction and services1		(7,795,070	)		(7,899,325	)		(7,185,364	)		(10,203,260	)		(4,320,678	)
General, administrative, and other		(1,305,599	)		(1,601,176	)		(1,343,537	)		(1,706,050	)		(1,112,313	)
Depreciation and amortization		(7,209,586	)		(7,842,914	)		(7,522,235	)		(6,175,623	)		(5,439,607	)
		(6,016,433)			(8,306,419	)		(8,154,200	)		(5,261,548	)		(6,079,191	)
Earnings Before Interest and Taxes		10,994,528			7,199,605			6,840,834			9,106,137			8,551,542
Interest expense		(6,139,761	)		(4,615,175	)		(4,569,992	)		(4,411,460	)		(5,176,658	)
Loss on sale of asset2		—			(764,008	)		—			—			—
Income tax (expense) benefit of taxable REIT subsidiary		(777,600	)		150,303			(13,287	)		(809,178	)		(232,285	)
Minority interest in income of consolidated subsidiaries		(2,993	)		(37,986	)		(37,524	)		(550,599	)		(623,574	)
Equity in earnings (loss) of unconsolidated entities		72,261			61,749			87,973			(26,225	)		76,385
Limited partners’ interests in the continuing operations of the Operating Partnership		(936,782	)		(454,117	)		(535,457	)		(886,925	)		(798,408	)
Income From Continuing Operations		3,209,653			1,540,371			1,772,547			2,421,750			1,797,002
Operating income from discontinued operations, net of Limited Partners’ interests3		—			—			—			5,466,250			185,239
Net income	$	3,209,653		$	1,540,371		$	1,772,547		$	7,888,000		$	1,982,241
NOI/Revenue		74.7	%		70.8	%		73.0	%		68.2	%		76.3	%
Recovery Ratio4		65.7	%		69.0	%		66.7	%		60.4	%		52.9	%

1	In September 2006, the Company sold its build-to-suit asset at Bridgewater Marketplace. Proceeds of this sale of $5.3 million and cost of the sale of $3.5 million are reflected in “Construction and service fee revenue” and “Cost of construction and services”, respectively.
2	In June 2006, the Company sold Marsh Supermarkets, an asset in its Naperville Marketplace development property in Naperville, Illinois.
3	In December 2005, the Company sold Mid-America Clinical Labs in Indianapolis, Indiana.
4	“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 – 9/30/06

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

	Outstanding Amount			Ratio			Weighted Average Interest Rate			Weighted Average Maturity (in years)
Fixed Rate Debt:
Consolidated	$	303,763			53	%		6.03	%		7.9
Unconsolidated		8,424			1	%		6.60	%		5.7
Floating Rate Debt (Hedged) 2		50,000			9	%		5.57	%		0.8
Total Fixed Rate Debt		362,187			63	%		5.98	%		6.8
Variable Rate Debt:3
Construction Loans		83,216			14	%		6.97	%		1.2
Other Variable		181,672			32	%		7.09	%		0.7
Floating Rate Debt (Hedged) 2		(50,000	)		-9	%		-6.67	%		-0.8
Total Variable Rate Debt		214,888			37	%		7.14	%		0.8
Net Premiums		2,378			N/A			N/A			N/A
Total	$	579,453			100	%		6.41	%		4.6

SCHEDULE OF MATURITIES BY YEAR AS OF SEPTEMBER 30, 2006

													Total Consolidated and Unconsolidated Debt
	Mortgage Debt				Secured Revolving Credit Facility		Construction Loans		Total Consolidated Outstanding Debt		KRG Share Of Unconsolidated Mortgage Debt
	Annual Maturity		Term Maturities
2006	$	635	$	54,931	$	0	$	1,704	$	57,270	$	51	$	57,321
2007		2,703		10,262		111,550		44,326		168,841		204		169,045
2008		2,652		8,292		0		29,409		40,353		218		40,571
2009		2,920		27,452		0		7,777		38,149		2,211		40,360
2010		3,030		0		0		0		3,030		97		3,127
2011		3,183		19,655		0		0		22,838		103		22,941
2012		3,506		35,356		0		0		38,862		109		38,971
2013		3,499		4,027		0		0		7,526		5,431		12,957
2014		3,187		27,567		0		0		30,754		0		30,754
2015		2,799		38,301		0		0		41,100		0		41,100
2016 and beyond		4,644		115,284		0		0		119,928		0		119,928
Net Premiums		0		0		0		0		2,378		0		2,378
Total	$	32,758	$	341,127	$	111,550	$	83,216	$	571,029	$	8,424	$	579,453

1	Dollars in thousands.
2	These debt obligations are hedged by interest rate swap agreements.
3	Variable rate debt %, net of swap transactions:

- Construction	14	%	$	83,216
- Other Variable	23	%		131,672	(Includes debt on acquisition land held for development)
	37	%	$	214,888

p. 13 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

SCHEDULE OF OUTSTANDING DEBT¹

CONSOLIDATED DEBT AS OF SEPTEMBER 30, 2006

Fixed Rate Debt:	Lender/Servicer		Interest Rate			Maturity Date		Balance as of Sept. 30, 2006		Monthly Debt Service as of Sept. 30, 2006
176th & Meridian		Wachovia Bank		5.67	%		11/11/14	$	4,172	$	25
50th & 12th		Wachovia Bank		5.67	%		11/11/14		4,592		27
Boulevard Crossing		Wachovia Bank		5.11	%		12/11/09		12,350		69
Centre at Panola, Phase I		JP Morgan Chase		6.78	%		1/1/22		4,202		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		1,818		17
Fox Lake Crossing		Wachovia Bank		5.16	%		7/1/12		11,982		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		19,512		139
Pine Ridge		Lehman Brothers Bank		6.34	%		10/11/16		17,500		93
Plaza at Cedar Hill		GECC		7.38	%		2/1/12		26,763		193
Plaza Volente		Wachovia Bank		5.42	%		6/11/15		28,680		134
Preston Commons		Wachovia Bank		5.90	%		3/11/13		4,543		28
Ridge Plaza		Wachovia Bank		5.15	%		10/11/09		16,546		93
Riverchase		Lehman Brothers Bank		6.34	%		10/11/16		10,500		56
Sunland Towne Centre		KeyBank		6.01	%		7/1/16		25,000		129
Thirty South		CS First Boston		6.09	%		1/11/14		22,762		142
Traders Point		Wachovia Bank		5.86	%		10/11/16		48,000		234
Whitehall Pike		Banc One Capital Funding		6.71	%		7/5/18		9,477		77
Subtotal								$	303,763	$	1,733

Floating Rate Debt (Hedged):	Lender		Interest Rate			Maturity Date		Balance as of Sept. 30, 2006		Monthly Debt Service as of Sept. 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								$	353,763	$	1,965
TOTAL NET PREMIUMS								$	2,378

Variable Rate Debt: Mortgages	Lender		Interest Rate3	Maturity Date		Balance as of Sept. 30, 2006
Courthouse Shadows4		Lehman Brothers Bank	LIBOR + 300		10/5/06	$	19,768
Fishers Station5		National City Bank	LIBOR + 275		9/1/08		4,929
Parkside Town Commons6		LaSalle Bank	LIBOR + 225		11/14/06		35,163
Unsecured Note7		Lehman Brothers Bank	LIBOR + 175		1/5/07		10,262
Subtotal						$	70,122

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 September 30, 2006, one-month LIBOR and Prime interest rates were 5.32% and 8.25%, respectively.
4	On October 5, 2006 the Maturity Date was extended to December 5, 2006 and the interest rate was reduced to LIBOR + 1.50%.
5	The Company has a 25% interest in this property. This loan is guaranteed by Kite Realty Group, LP.
6	The Company entered into a land loan with a total commitment of $36 million and plans to convert to a construction loan upon maturity.
7	Represents acquisition financing for Riverchase and Pine Ridge.

p. 14 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

SCHEDULE OF OUTSTANDING DEBT (CONTINUED)¹

Variable Rate Debt: Construction Loans	Servicer		Interest Rate 2		Maturity Date		Total Commitment		Balance as of Sept. 30, 2006
Beacon Hill Shopping Center3		Fifth Third Bank		LIBOR + 150		9/30/07	$	34,800	$	7,604
Bridgewater Marketplace		Home Federal Bank		LIBOR + 160		6/29/08		12,000		3,933
Cobblestone Plaza4		Wachovia Bank		LIBOR + 160		6/29/09		44,500		7,777
Estero Town Center5		Wachovia Bank		LIBOR + 165		4/1/08		20,460		12,452
Gateway Shopping Center6		Union Bank of California		LIBOR + 150		12/15/07		22,268		6,293
Geist Pavilion		The National Bank of Indianapolis and Busey Bank		LIBOR + 165		5/1/07		10,057		8,775
Naperville Marketplace		LaSalle Bank		LIBOR + 175		6/30/07		14,400		9,197
Red Bank Commons		Huntington Bank		LIBOR + 165		3/31/07		4,960		4,799
Sandifur Plaza7		LaSalle Bank		LIBOR + 165		12/31/06		5,500		1,704
Tarpon Springs Plaza		Wachovia Bank		LIBOR + 175		4/1/08		20,000		13,024
Traders Point II		Huntington Bank		LIBOR + 165		6/28/07		9,587		7,658
Subtotal							$	198,532	$	83,216

Line of Credit	Lender		Interest Rate 2	Maturity Date		Total Available as of Sept. 30, 2006		Balance as of Sept. 30, 2006
Collateral Pool Properties: 8,9,10		Wachovia Bank	LIBOR + 135		8/31/07	$	132,834	$	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								$	214,888
TOTAL DEBT PER CONSOLIDATED BALANCE SHEET								$	571,029

1	Dollars in thousands.
2	At September 30, 2006, one-month LIBOR and Prime interest rates were 5.32% 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 17 properties encumbered under the line of credit and 30 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, 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 $132,834, of which $111,550 was outstanding as of September 30, 2006.

p. 15 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

SCHEDULE OF OUTSTANDING DEBT (CONTINUED)¹

UNCONSOLIDATED DEBT AS OF SEPTEMBER 30, 2006  ²

	Lender		Interest Rate			Maturity Date		Balance as of Sept. 30, 2006			Monthly Debt Service as of Sept. 30, 2006
Fixed Rate
The Centre		Sun Life		6.99	%		6/1/2009	$	4,016		$	40
Spring Mill Medical		LaSalle Bank		6.45	%		9/1/2013		12,029			78
TOTAL UNCONSOLIDATED DEBT								$	16,045		$	118
JOINT VENTURE PARTNERS’ SHARE OF TOTAL UNCONSOLIDATED DEBT									(7,621	)
KRG’s SHARE OF TOTAL UNCONSOLIDATED DEBT								$	8,424
TOTAL KRG CONSOLIDATED DEBT								$	571,029
TOTAL KRG UNCONSOLIDATED DEBT									8,424
TOTAL KRG DEBT								$	579,453

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 – 9/30/06

JOINT VENTURE SUMMARY – UNCONSOLIDATED OPERATING PROPERTIES

The Company owns the following two unconsolidated operating  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 – 9/30/06

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

	September 30, 2006			December 31, 2005
Assets:
Investment properties, at cost
Land	$	2,552,075		$	2,552,075
Buildings and improvements		14,587,197			14,566,616
Furniture and equipment		10,581			3,290
		17,149,853			17,121,981
Less: accumulated depreciation		(3,138,824	)		(2,793,109	)
		14,011,029			14,328,872
Cash and cash equivalents		992,095			902,443
Tenant receivables, including accrued straight-line rent		109,280			140,124
Deferred costs, net		628,696			670,319
Prepaid and other assets		325			—
Total Assets	$	15,741,425		$	16,041,758
Liabilities and Accumulated Equity (Deficit):
Mortgage and other indebtedness	$	16,045,041		$	16,299,855
Accounts payable and accrued expenses		589,841			524,792
Total Liabilities		16,634,882			16,824,647
Accumulated equity (deficit)		(893,457	)		(782,889	)
Total Liabilities and Accumulated Equity (Deficit)	$	15,741,425		$	16,041,758

p. 18 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

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

	Three Months Ended September 30,				Nine Months Ended June 30,
	2006		2005		2006		2005
Total Revenue	$	860,284	$	863,851	$	2,595,541	$	2,552,890
Expenses:
Property operating		210,587		250,386		629,823		675,188
Real estate taxes		62,155		73,157		191,568		184,501
Depreciation and amortization		129,356		100,462		391,907		381,255
Total expenses		402,098		424,005		1,213,298		1,240,944
Operating income		458,186		439,846		1,382,243		1,311,946
Interest expense		274,319		280,019		820,812		837,555
Net income	$	183,867	$	159,827	$	561,431	$	474,391

p. 19 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

TOP 10 RETAIL TENANTS BY GROSS LEASABLE AREA (GLA)
AS OF SEPTEMBER 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 September 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		1,247,630		3		128,997		6		1,118,633
Wal-Mart		5		749,649		2		234,649		3		515,000
Federated Department Stores		1		237,455		1		237,455		0		0
Publix		5		234,246		5		234,246		0		0
Circuit City		4		132,347		4		132,347		0		0
Dominick’s		2		131,613		2		131,613		0		0
Dick’s Sporting Goods		2		126,672		2		126,672		0		0
Marsh Supermarkets		2		124,902		2		124,902		0		0
Ross Stores		4		118,374		4		118,374		0		0
Bealls		3		116,055		2		79,611		0		36,444
Total		37		3,218,943		27		1,548,866		9		1,670,077

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 163,000 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 – 9/30/06

TOP 25 TENANTS BY ANNUALIZED BASE RENT^1,2

AS OF SEPTEMBER 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 September 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		2.3	%	$	2,564,000	$	5.67		3.8	%
Circuit City		Retail		4		132,347		2.3	%	$	1,930,190	$	14.58		2.8	%
Publix		Retail		5		234,246		4.1	%	$	1,837,584	$	7.84		2.7	%
State of Indiana		Commercial		3		210,393		3.7	%	$	1,663,733	$	7.91		2.5	%
Eli Lilly		Commercial		1		99,542		1.7	%	$	1,642,443	$	16.50		2.4	%
Marsh Supermarkets4		Retail		2		124,902		2.2	%	$	1,633,958	$	13.08		2.4	%
Dominick’s		Retail		2		131,613		2.3	%	$	1,411,728	$	10.73		2.1	%
Bed Bath & Beyond		Retail		4		109,296		1.9	%	$	1,356,866	$	12.41		2.0	%
Dick’s Sporting Goods		Retail		2		126,672		2.2	%	$	1,220,000	$	9.63		1.8	%
Ross Stores		Retail		4		118,374		2.1	%	$	1,210,785	$	10.23		1.8	%
HEB		Retail		1		105,000		1.8	%	$	1,155,000	$	11.00		1.7	%
Office Depot		Retail		4		103,294		1.8	%	$	1,034,844	$	10.02		1.5	%
Walgreens		Retail		3		39,070		0.7	%	$	1,031,023	$	26.39		1.5	%
Petsmart		Retail		3		77,909		1.4	%	$	962,345	$	12.35		1.4	%
Wal-Mart		Retail		2		234,649		4.1	%	$	930,927	$	3.97		1.4	%
Kmart		Retail		1		110,875		1.9	%	$	850,379	$	7.67		1.3	%
UMDA3		Commercial		1		32,256		0.6	%	$	844,402	$	26.18		1.2	%
Kerasotes5		Retail		2		43,050		0.8	%	$	776,496	$	8.92		1.1	%
A & P		Retail		1		58,732		1.0	%	$	763,516	$	13.00		1.1	%
Old Navy		Retail		3		64,868		1.1	%	$	748,693	$	11.54		1.1	%
Office Max		Retail		3		69,872		1.2	%	$	733,970	$	10.50		1.1	%
Shoe Pavilion		Retail		1		31,396		0.6	%	$	722,108	$	23.00		1.1	%
City Securities		Commercial		1		34,949		0.6	%	$	694,900	$	19.88		1.0	%
Indiana University Healthcare Associates3		Commercial		1		31,175		0.6	%	$	622,201	$	19.96		0.9	%
Petco		Retail		3		40,777		0.7	%	$	583,985	$	14.32		0.9	%
Total						2,494,254		43.7	%	$	28,926,076	$	10.11		42.6	%

1	Annualized Base Rent represents the monthly contractual rent for September 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 – 9/30/06

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 September 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		38		74,722		1.4	%	$	843,316		1.3	%	$	11.29	$	0
2007		87		297,694		5.5	%		3,373,861		5.3	%		11.33		800,000
2008		53		456,887		8.5	%		3,606,040		5.6	%		7.89		0
2009		78		247,277		4.6	%		4,059,951		6.3	%		16.42		0
2010		76		452,363		8.4	%		5,676,485		8.8	%		12.55		0
2011		80		732,203		13.6	%		7,482,014		11.6	%		10.22		0
2012		39		295,039		5.5	%		4,076,017		6.3	%		13.82		85,000
2013		25		205,519		3.8	%		2,998,694		4.7	%		14.59		0
2014		35		475,468		8.9	%		5,429,647		8.4	%		11.42		427,900
2015		42		515,380		9.6	%		6,525,989		10.2	%		12.66		251,500
Beyond		63		1,618,681		30.2	%		20,236,026		31.5	%		12.50		2,065,013
Total		616		5,371,233		100.0	%	$	64,308,040		100.0	%	$	11.97	$	3,629,413

1	Excludes tenants at development properties that are Build-to-Suits for sale.
2	Lease expiration table reflects rents in place as of September 30, 2006 and does not include option periods; 2006 expirations include 28 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 September 2006 for each applicable tenant, multiplied by 12. Excludes ground lease revenue.

          p. 22 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

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 September 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		12,565		0.2	%	$	75,390		0.1	%	$	6.00	$	0
2007		8		133,338		2.5	%		850,276		1.3	%		6.38		800,000
2008		3		342,049		6.4	%		1,441,077		2.2	%		4.21		0
2009		3		69,382		1.3	%		669,318		1.0	%		9.65		0
2010		12		295,189		5.5	%		2,713,985		4.2	%		9.19		0
2011		8		455,895		8.5	%		2,476,177		3.9	%		5.43		0
2012		6		150,399		2.8	%		1,307,103		2.0	%		8.69		0
2013		1		11,960		0.2	%		161,460		0.3	%		13.50		0
2014		10		271,018		5.1	%		2,689,978		4.2	%		9.93		0
2015		11		374,879		7.0	%		3,614,475		5.6	%		9.64		0
Beyond		36		1,457,846		27.1	%		16,702,631		26.0	%		11.46		990,000
Total		99		3,574,520		66.6	%	$	32,701,870		50.8	%	$	9.15	$	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 September 30, 2006 and does not include option periods. 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 September 2006 for each applicable property, multiplied by 12. Excludes ground lease revenue.

          p. 23 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

LEASE EXPIRATIONS – RETAIL SHOPS

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

	Number of Expiring Leases 1		Expiring GLA 2		% of Total GLA Expiring			Expiring Annualized Base Rent 3		% of Total Annualized Base Rent			Expiring Annualized Base Rent per Sq. Ft.		Expiring Ground Lease Revenue
2006		36		61,157		1.1	%	$	767,676		1.2	%	$	12.55	$	0
2007		77		160,401		3.0	%		2,446,225		3.8	%		15.25		0
2008		49		106,873		2.0	%		2,005,025		3.1	%		18.76		0
2009		75		177,895		3.3	%		3,390,633		5.3	%		19.06		0
2010		63		148,296		2.8	%		2,782,720		4.4	%		18.76		0
2011		69		176,766		3.3	%		3,363,394		5.2	%		19.03		0
2012		31		107,588		2.0	%		2,178,206		3.4	%		20.25		85,000
2013		20		65,205		1.2	%		1,247,603		1.9	%		19.13		0
2014		23		54,501		1.0	%		1,351,319		2.1	%		24.79		427,900
2015		29		95,394		1.8	%		2,111,981		3.3	%		22.14		251,500
Beyond		25		97,404		1.8	%		2,066,793		3.2	%		21.22		1,075,013
Total		497		1,251,480		23.3	%	$	23,711,575		36.9	%	$	18.95	$	1,839,413

1	Lease expiration table reflects rents in place as of September 30, 2006 and does not include option periods; 2006 expirations include 24 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 September 2006 for each applicable property, multiplied by 12. Excludes ground lease revenue.

          p. 24 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

LEASE EXPIRATIONS – COMMERCIAL TENANTS

This Table Includes the Following:
•	Operating Commercial Properties

	Number of Expiring Leases 1		Expiring NRA		% of Total NRA Expiring			Expiring Annualized Base Rent 2		% 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		1.9	%		1,642,443		2.5	%		16.50
2012		2		37,052		0.7	%		590,708		0.9	%		15.94
2013		4		128,354		2.4	%		1,589,631		2.5	%		12.38
2014		2		149,949		2.7	%		1,388,350		2.2	%		9.26
2015		2		45,107		0.8	%		799,533		1.2	%		17.73
Beyond		2		63,431		1.2	%		1,466,602		2.3	%		23.12
Total		20		545,233		10.2	%	$	7,894,595		12.3	%	$	14.48

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

          p. 25 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

SUMMARY RETAIL PORTFOLIO STATISTICS
(INCLUDES JOINT VENTURE PROPERTIES)

Retail Portfolio	9/30/06			6/30/06			3/31/06			12/31/05			9/30/05
Company Owned GLA 1 – Operating Retail		4,989,635			4,595,183			4,532,104			4,497,658			4,175,813
Total GLA 1 – Operating Retail		7,209,584			6,698,265			6,650,386			6,160,940			5,685,320
Projected Company Owned GLA Under Development 2,4		587,750			581,281			696,896			690,161			628,100
Projected Total GLA Under Development 4		1,598,470			1,535,081			1,579,358			1,823,561			1,772,825
Number of Operating Retail Properties		46			43			42			40			37
Number of Retail Properties Under Development4		11			11	4		12			14			13
Percentage Leased – Operating Retail		93.6	%		93.0	%		94.8	%		95.3	%		95.6	%
Annualized Base Rent & Ground Lease Revenue - Retail Properties 3	$	56,724,615		$	51,664,411		$	51,480,775		$	50,059,285		$	46,701,031

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 September 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 – 9/30/06

SUMMARY COMMERCIAL PORTFOLIO STATISTICS
(INCLUDES JOINT VENTURE PROPERTIES)

Commercial Portfolio	9/30/06			6/30/06			3/31/06			12/31/05			9/30/05
Company Owned Net Rentable Area (NRA) 1		562,652			562,652			562,652			562,652			662,652
NRA under Development		—			—			—			—			—
Number of Operating Commercial Properties		5			5			5			5			6
Number of Commercial Properties under Development		—			—			—			—			—
Percentage Leased – Operating Commercial Properties		96.9	%		96.9	%		97.7	%		97.3	%		97.7	%
Percentage Leased – Commercial Properties under Development		—			—			—			—			—
Annualized Base Rent – Commercial Properties 2,3	$	7,894,595		$	7,874,683		$	7,959,366		$	7,909,489		$	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 $799,533 from KRG and subsidiaries as of September 30, 2006.

          p. 27 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

DEVELOPMENT PIPELINE
AS OF SEPTEMBER 30, 2006⁶

2005 Deliveries/ 2006 Stabilizations	KRG Ownership %’s7	MSA	Type of Property	Opening Date1	Projected Owned GLA2	Projected Total GLA3	Percent of Owned GLA Occupied8	Percent of Owned GLA Pre-Leased/ Committed5	Total Estimated Project Cost4	Cost Incurred as of Sept. 30, 20064	Major Tenants and Non-owned Anchors
Indiana
Geist Pavilion	100%	Indianapolis, IN	Retail	Q1 – Q4 2005 9	64,500	64,500	80.8%	94.4%	$  11,971	$  11,267	Marsh Supermarkets/Party Tree
Subtotal					64,500	64,500	80.8%	94.4%	$  11,971	$  11,267

2006-2007 Deliveries		MSA	Type of Property	Opening Date1	Projected Owned GLA2	Projected Total GLA3	Percent of Owned GLA Occupied8	Percent of Owned GLA Pre-Leased/ Committed5	Total Estimated Project Cost 4	Cost Incurred as of Sept. 30, 20064	Major Tenants and Non-owned Anchors
Florida
Tarpon Springs Plaza	100%	Naples, FL	Retail	Q1 2007	82,550	272,350	0.0%	100.0%	$  22,500	$  17,737	Target (non-owned), Staples, Cost Plus, AC Moore
Estero Town Commons	40%	Naples, FL	Retail	Q3 2006	25,600	206,600	0.0%	93.0%	20,000	16,245	Lowe’s Home Improvement
Bayport Commons	60%	Tampa, FL	Retail		92,300	281,100	0.0%	48.2%	25,000	8,208	Target (non-owned)
Indiana
Beacon Hill Shopping Center	50%	Crown Point, IN	Retail	Q4 2006	57,200	162,700	0.0%	56.6%	17,000	12,405	Strack & VanTil’s (non-owned), Walgreen’s (non-owned)
Zionsville Place	100%	Indianapolis, IN	Retail	Q3 2006	12,400	42,400	25.8%	90.3%	4,550	4,295	Sherwin Willliams
Bridgewater Marketplace I	100%	Indianapolis, IN	Retail	Q4 2006	26,000	50,820	0.0%	11.5%	11,000	8,778	Walgreen’s (non-owned)
Illinois
Naperville Marketplace	100%	Chicago, IL	Retail	Q3 2006	99,600	169,600	33.1%	35.5%	16,500	11,401	Caputo’s Fresh Market (non-owned), TJ Maxx
Oregon
Cornelius Gateway Build-to-Suit For Sale	80%	Portland, OR	Retail	Q2 2006	21,000	35,800	0.0%	21.0%	5,400	4,081	Walgreens (non-owned)
Washington
Sandifur Plaza Build-to-Suit for Sale	80%/95%	Tri-Cities, WA	Retail	Q4 2006	27,400	27,400	0.0%	80.3%	6,400	2,880	Walgreens (build-to-suit for sale)
Gateway Shopping Center - Phase I & II	50%	Seattle, WA	Retail	Q1 2007	79,200	285,200	0.0%	66.4%	24,300	10,285	Kohl’s (non-owned), Winco (non-owned)
Subtotal					523,250	1,533,970	6.9%	67.3%	$  152,650	$  96,315
Total 10					587,750	1,598,470	15.0%	69.7%	$  164,621	$  107,582

1	Opening Date is defined as the first date a tenant is open for business or a ground lease payment is made. Stabilization (85% occupied) typically occurs within six to twelve months after opening date.
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. Reflects KRG and partner share of costs.
5	Excludes land parcels owned by the Company and ground leased to tenants. Includes leases under negotiation for approximately 96,724 square feet for which the Company has signed non-binding letters of intent.
6	All joint ventures are consolidated in the Company’s financial statements.
7	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%); Estero Town Commons (preferred return, then 40%) and Bayport Commons. (preferred return, then 60%)
8	Includes tenants that have taken possession of their space or have begun paying rent.
9	The Phase I building opened Q1 2005. Phase II and Phase III buildings opened Q4 2005.
10	Excludes Kedron Village, a property the Company acquired in April 2006 while under construction. This property opened during the third quarter of 2006 and remained under construction as of September 30, 2006. Kedron Village contains 282,125 square feet of total GLA and 157,408 square feet of owned GLA. See “Other Development Activity” on page 29.

p. 28 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

OTHER DEVELOPMENT ACTIVITY¹
AS OF SEPTEMBER 30, 2006

VISIBLE SHADOW PIPELINE

Property	MSA		KRG Ownership %4		Estimated Start Date		Estimated Total GLA3		Total Estimated Cost3		Cost Incurred as of Sept. 30, 2006		Executed Leases & Potential Tenancy
Parkside Town Commons2		Raleigh, NC		100%		TBD		750,000	$	118,000	$	36,408		TBD
Delray Marketplace		Delray Beach, FL		50%		TBD		318,000	$	73,000		28,349		Grocery, Theater, Jr. Boxes, Shops, Restaurants
Cobblestone Plaza		Ft. Lauderdale, FL		50%		TBD		161,000	$	45,000		13,518		Whole Foods, Jr. Boxes, Shops
54th & College		Indianapolis, IN		100%		TBD		20,100	$	2,500		2,107		Ground Lease to Specialty Grocer
								1,249,100	$	238,500	$	80,382

REDEVELOPMENT ACTIVITY

Property	MSA	Project Description
Shops at Eagle Creek	Naples, FL	The Company is in the process of re-tenanting the 51,000 square foot anchor space formerly occupied by Winn-Dixie with two junior box users.

ACQUIRED DEVELOPMENTS UNDER CONSTRUCTION

Property	MSA	Date Acquired	Purchase Price	Owned GLA	Percent of Owned GLA Occupied	Percent of Owned GLA Pre-Leased/ Committed	Major Tenants
Kedron Village 5	Atlanta, GA	04/03/06	$  36,900	157,408	61%	83%	Target (non-owned); Ross; Bed Bath & Beyond; Petco

1	Dollars in thousands. Reflects KRG and partner share of costs.
2	In September 2006, the Company announced the formation of a joint venture agreement with Prudential Real Estate Investors (“PREI”). Parkside Town Commons is the first project that the Company intends to contribute to this joint venture.
3	Total Estimated Cost and Estimated Total GLA based on preliminary siteplans.
4	The Company owns the following development properties through joint ventures:  Delray Marketplace (preferred return, then 50%) and Cobblestone Plaza (preferred return, then 50%).
5	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. The anchor tenants are open for business, and the shop space tenants will open throughout the remainder of 2006.

p. 29 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

GEOGRAPHIC DIVERSIFICATION – OPERATING PORTFOLIO¹
AS OF SEPTEMBER 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		2,258,052		40.6	%		227	$	23,895,716		38.7	%	$	11.76
•   Retail – Mall		1		579,189		10.4	%		39		2,154,814		3.5	%		4.75
•   Retail		15		1,116,211		20.1	%		168		13,846,307		22.4	%		13.40
•   Commercial		5		562,652		10.1	%		20		7,894,595		12.8	%		14.48
Florida		12		1,319,928		23.8	%		169		13,196,637		21.4	%		10.62
Texas		8		1,136,686		20.4	%		96		13,834,262		22.4	%		12.24
Illinois		2		231,592		4.2	%		35		3,085,531		5.0	%		14.14
New Jersey		1		115,088		2.1	%		17		1,788,150		2.9	%		16.03
Georgia		2		142,707		2.6	%		27		1,611,322		2.6	%		11.39
Washington		3		102,159		1.8	%		24		1,705,809		2.8	%		17.78
Ohio		1		236,230		4.3	%		7		2,353,767		3.8	%		9.96
Oregon		1		9,845		0.2	%		7		268,603		0.4	%		27.28
Total		51		5,552,287		100.0	%		609	$	61,739,797		100.0	%	$	11.83

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 22 parcels or outlots owned by the Company and ground leased to tenants, which contain 22 non-owned structures totaling approximately 314,619 square feet. It also excludes the square footage of Union Station Parking Garage.
3	Annualized Base Rent excludes $2,879,413 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. 30 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

OPERATING RETAIL PROPERTIES – TABLE I
AS OF SEPTEMBER 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		FL		Gainesville		1970		2004		Acquired		177,826		177,826		100.0	%
Waterford Lakes		FL		Orlando		1997		2004		Acquired		77,948		77,948		98.5	%
Shops at Eagle Creek 10		FL		Naples		1998		2003		Acquired		75,944		75,944		23.9	%
Eagle Creek Lowe’s		FL		Naples		2006		2006		Developed		165,000		0		*
Pine  Ridge Crossing		FL		Naples		1993		2006		Acquired		258,882		105,515		100.0	%
Riverchase		FL		Naples		1991		2006		Acquired		78,340		78,340		100.0	%
Courthouse Shadows		FL		Naples		1987		2006		Acquired		134,867		134,867		100.0	%
Circuit City Plaza		FL		Ft. Lauderdale		2004		2004		Developed		405,906		45,906		97.1	%
Indian River Square		FL		Vero Beach		1997/2004		2005		Acquired		379,246		144,246		100.0	%
Bolton Plaza4		FL		Jacksonville		1986		2005		Acquired		172,938		172,938		93.5	%
Centre at Panola		GA		Atlanta		2001		2004		Acquired		73,079		73,079		98.4	%
Publix at Acworth		GA		Atlanta		1996		2004		Acquired		69,628		69,628		100.0	%
Silver Glen Crossing		IL		Chicago		2002		2004		Acquired		138,069		132,520		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		78.3	%
Cool Creek Commons		IN		Indianapolis		2005		2005		Developed		133,207		120,678		92.8	%
Boulevard Crossing		IN		Kokomo		2004		2004		Developed		213,696		123,696		93.1	%
Traders Point		IN		Indianapolis		2005		2005		Developed		348,778		279,501		94.9	%
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		86.8	%
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		91.5	%
The Corner Shops		IN		Indianapolis		1984/2003		1984		Developed		42,545		42,545		100.0	%
Stoney Creek Commons		IN		Indianapolis		2000		2000		Developed		189,527		49,330		100.0	%
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		324,308		34,308		78.0	%
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		312,450		307,474		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		160,333		156,333		100.0	%
Market Street Village		TX		Hurst		1970/2004		2005		Acquired		156,500		149,500		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		73,099		73,099		91.5	%
										TOTAL		7,209,584		4,989,635		93.6	%

(*)	Property consists of ground leases only, no Owned GLA. As of September 30, 2006, the following were leased: Lowe’s at Eagle Creek – single ground lease property; 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 September 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. 31 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

OPERATING RETAIL PROPERTIES – TABLE II
AS OF SEPTEMBER 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	$ 2,423,671	$232,900	$2,656,571	4.7%	$  11.18	SteinMart, Bed Bath & Beyond, Circuit City
King’s Lake Square	FL	Naples	1,102,989	—	1,102,989	1.9%	13.23	Publix, Walgreens
Wal-Mart Plaza	FL	Gainesville	940,135	—	940,135	1.7%	5.29	Wal-Mart, Books-A-Million, Save A Lot
Waterford Lakes	FL	Orlando	888,837	—	888,837	1.6%	11.58	Winn-Dixie5
Shops at Eagle Creek	FL	Naples	392,834	—	392,834	0.7%	21.65
Eagle Creek Lowe’s	FL	Naples	—	800,000	800,000	1.4%		Lowe’s Home Improvement
Pine Ridge Crossing	FL	Naples	1,562,008	—	1,562,008	2.8%	14.80	Publix, Bealls (non-owned), Target (non-owned)
Riverchase	FL	Naples	1,063,710	—	1,063,710	1.9%	13.58	Publix
Courthouse Shadows	FL	Naples	1,463,932	—	1,463,932	2.6%	10.85	Albertson’s, Office Max
Circuit City Plaza	FL	Ft. Lauderdale	881,277	—	881,277	1.6%	19.78	Circuit City, Wal-Mart (non-owned), Lowe’s Home Improvement (non-owned)
Indian River Square	FL	Vero Beach	1,425,452	—	1,425,452	2.5%	9.88	Office Depot, Bealls, Ragshop, Lowe’s Home Improvement (non-owned), Target (non-owned)
Bolton Plaza 4	FL	Jacksonville	1,051,792	—	1,051,792	1.9%	6.50	Wal-Mart
Centre at Panola	GA	Atlanta	813,288	—	813,288	1.4%	11.31	Publix
Publix at Acworth	GA	Atlanta	798,034	—	798,034	1.4%	11.46	Publix, CVS
Silver Glen Crossing	IL	Chicago	1,800,956	85,000	1,885,956	3.3%	14.32	Dominick’s, MC Sports
Fox Lake Crossing	IL	Chicago	1,284,575	—	1,284,575	2.3%	13.89	Dominick’s
Glendale Mall	IN	Indianapolis	2,154,814	154,004	2,308,818	4.1%	4.75	L.S. Ayres, Kerasotes Theatre, Lowe’s Home Improvement (non-owned)
Cool Creek Commons	IN	Indianapolis	1,710,921	155,500	1,866,421	3.3%	15.28	Fresh Market, Stein Mart
Boulevard Crossing	IN	Kokomo	1,549,855	—	1,549,855	2.7%	13.46	TJ Maxx, PETCO, Shoe Carnival, Kohl’s (non-owned)
Traders Point	IN	Indianapolis	3,697,020	545,000	4,242,020	7.4%	13.94	Dick’s Sporting Goods, Bed Bath & Beyond, Michaels, Marsh Supermarkets, Books-A-Million, Old Navy
Traders Point II	IN	Indianapolis	662,743	—	662,743	1.2%	26.45
Hamilton Crossing	IN	Indianapolis	1,399,100	71,500	1,470,600	2.6%	16.97	Office Depot
Fishers Station	IN	Indianapolis	1,221,559	—	1,221,559	2.2%	12.29	Marsh Supermarket
Whitehall Pike	IN	Bloomington	1,014,000	—	1,014,000	1.8%	7.86	Lowe’s Home Improvement
The Centre 4	IN	Indianapolis	938,297	—	938,297	1.7%	12.71	Osco
The Corner Shops	IN	Indianapolis	527,066	—	527,066	0.9%	12.39	Hancock Fabrics
Stoney Creek Commons	IN	Indianapolis	464,755	—	464,755	0.8%	9.42	Lowe’s Home Improvement (non-owned), HH Gregg, Office Depot
Greyhound Commons	IN	Indianapolis	—	202,500	202,500	0.4%	—	Lowe’s Home Improvement (non-owned)
Weston Park Phase I	IN	Indianapolis	—	190,000	190,000	0.3%	—
Red Bank Commons	IN	Evansville	379,784	—	379,784	0.7%	14.19	Wal-Mart (non-owned) Home Depot (non-owned)
Martinsville Shops	IN	Martinsville	149,207	—	149,207	0.3%	13.58
50 South Morton	IN	Indianapolis	132,000	—	132,000	0.2%	66.00
Ridge Plaza	NJ	Oak Ridge	1,788,150	—	1,788,150	3.2%	16.03	A&P, CVS
Eastgate Pavilion	OH	Cincinnati	2,353,767	—	2,353,767	4.2%	9.96	Dick’s Sporting Goods, Value City Furniture, Best Buy
Shops at Otty	OR	Portland	268,603	122,500	391,103	0.7%	27.28	Wal-Mart (non-owned)
Plaza at Cedar Hill	TX	Dallas	3,603,875	—	3,603,875	6.3%	12.02	Hobby Lobby, Linens ‘N Things, Marshall’s
Sunland Towne Centre	TX	El Paso	3,011,918	104,809	3,116,727	5.5%	9.84	Kmart, Circuit City, Roomstore
Galleria Plaza	TX	Dallas	1,083,224	—	1,083,224	1.9%	24.45	Shoe Pavilion
Cedar Hill Village	TX	Dallas	673,085	—	673,085	1.2%	16.14	24 Hour Fitness, JCPenney (non-owned)
Preston Commons	TX	Dallas	587,502	—	587,502	1.0%	23.69	Lowe’s Home Improvement (non-owned)
Burlington Coat Factory	TX	San Antonio	510,150	—	510,150	0.9%	4.75	Burlington Coat Factory
Plaza Volente	TX	Austin	2,453,150	100,000	2,553,150	4.5%	15.69	H-E-B Grocery
Market Street Village	TX	Hurst	1,911,358	115,700	2,027,058	3.6%	12.79	Ross, Office Depot, JoAnn’s, Circuit City, Hancock Fabrics
50th & 12th	WA	Seattle	475,000	—	475,000	0.8%	32.76	Walgreens
176th & Meridian	WA	Seattle	433,000	—	433,000	0.8%	29.74	Walgreens
Four Corner Square	WA	Seattle	797,809	—	797,809	1.4%	11.93	Johnson Hardware Store
		TOTAL	$ 53,845,202	$ 2,879,413	$ 56,724,615	100.0%	$ 11.52

1	Annualized Base Rent represents the contractual rent for September 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 September 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. 32 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

OPERATING COMMERCIAL PROPERTIES
AS OF SEPTEMBER 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		94.2	%	$	4,921,306		62.3	%	$	17.52		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 Medical 2		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	%	$	7,894,595		100.0	%	$	14.48

1	Annualized Base Rent represents the monthly contractual rent for September 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 the Company and subsidiaries as of September 30, 2006.

p. 33 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

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

	Owned Gross Leasable Area				Occupancy			Annualized Base Rent1				Annualized Base Rent per Occupied Sq. Ft.
Property	State	Anchors	Shops	Total	Anchors	Shops	Total	Anchors	Shops	Ground Leases	Total	Anchors	Shops	Total
International Speedway Square	FL	200,401	20,500	220,901	100.0%	80.4%	98.2%	$ 2,118,321	$ 305,350	$ 232,900	$ 2,656,571	$ 10.57	$ 18.53	$ 11.18
King’s Lake Square	FL	49,805	35,692	85,497	100.0%	94.0%	97.5%	361,793	741,196	—	1,102,989	7.26	22.08	13.23
Wal-Mart Plaza	FL	138,323	39,503	177,826	100.0%	100.0%	100.0%	538,533	401,602	—	940,135	3.89	10.17	5.29
Waterford Lakes	FL	51,703	26,245	77,948	100.0%	95.4%	98.5%	408,452	480,385	—	888,837	7.90	19.18	11.58
Shops at Eagle Creek	FL	51,703	24,241	75,944	0.0%	74.9%	23.9%	—	392,834	—	392,834	—	21.65	21.65
Eagle Creek Lowe’s	FL	—	—	—	—	—	—	—	—	800,000	800,000	—	—	—
Pine Ridge Crossing	FL	65,999	39,516	105,515	100.0%	100.0%	100.0%	611,992	950,016	—	1,562,008	9.27	24.04	14.80
Riverchase	FL	48,890	29,450	78,340	100.0%	100.0%	100.0%	386,231	677,479	—	1,063,710	7.90	23.00	13.58
Courthouse Shadows	FL	102,328	32,539	134,867	100.0%	100.0%	100.0%	942,979	520,953	—	1,463,932	9.22	16.01	10.85
Circuit City Plaza	FL	33,014	12,892	45,906	100.0%	89.5%	97.1%	594,252	287,025	—	881,277	18.00	24.88	19.78
Indian River Square	FL	116,342	27,904	144,246	100.0%	100.0%	100.0%	942,078	483,374	—	1,425,452	8.10	17.32	9.88
Bolton Plaza	FL	131,488	41,450	172,938	100.0%	73.0%	93.5%	621,444	430,348	—	1,051,792	4.73	14.23	6.50
Centre at Panola	GA	51,674	21,405	73,079	100.0%	94.4%	98.4%	413,388	399,900	—	813,288	8.00	19.79	11.31
Publix at Acworth	GA	37,888	31,740	69,628	100.0%	100.0%	100.0%	337,203	460,831	—	798,034	8.90	14.52	11.46
Silver Glen Crossing	IL	78,675	53,845	132,520	100.0%	87.5%	94.9%	812,916	988,040	85,000	1,885,956	10.33	20.97	14.32
Fox Lake Crossing	IL	65,977	33,095	99,072	100.0%	80.1%	93.3%	742,241	542,334	—	1,284,575	11.25	20.47	13.89
Glendale Mall	IN	437,702	141,487	579,189	86.5%	52.8%	78.3%	1,295,905	858,909	154,004	2,308,818	3.42	11.50	4.75
Cool Creek Commons	IN	63,600	57,078	120,678	100.0%	84.7%	92.8%	601,700	1,109,221	155,500	1,866,421	9.46	22.95	15.28
Boulevard Crossing	IN	73,440	50,256	123,696	100.0%	83.0%	93.1%	832,960	716,895	—	1,549,855	11.34	17.18	13.46
Traders Point	IN	238,664	40,837	279,501	100.0%	64.8%	94.9%	3,070,517	626,503	545,000	4,242,020	12.87	23.67	13.94
Traders Point II	IN	—	46,600	46,600	—	53.8%	53.8%	—	662,743	—	662,743	—	26.45	26.45
Hamilton Crossing	IN	30,722	51,702	82,424	100.0%	100.0%	100.0%	345,623	1,053,477	71,500	1,470,600	11.25	20.38	16.97
Fishers Station	IN	57,000	57,457	114,457	100.0%	73.7%	86.8%	575,000	646,559	—	1,221,559	10.09	15.26	12.29
Whitehall Pike	IN	128,997	—	128,997	100.0%	—	100.0%	1,014,000	—	—	1,014,000	7.86	—	7.86
The Centre	IN	18,720	61,969	80,689	100.0%	89.0%	91.5%	170,352	767,945	—	938,297	9.10	13.93	12.71
The Corner Shops	IN	12,200	30,345	42,545	100.0%	100.0%	100.0%	73,200	453,866	—	527,066	6.00	14.96	12.39
Stoney Creek Commons	IN	49,330	—	49,330	100.0%	—	100.0%	464,755	—	—	464,755	9.42	—	9.42
Greyhound Commons	IN	—	—	—	—	—	—	—	—	202,500	202,500	—	—	—
Weston Park Phase I	IN	—	—	—	—	—	—	—	—	190,000	190,000	—	—	—
Red Bank Commons	IN	—	34,308	34,308	—	78.0%	78.0%	—	379,784	—	379,784	—	14.19	14.19
Martinsville Shops	IN	—	10,986	10,986	—	100.0%	100.0%	—	149,207	—	149,207	—	13.58	13.58
50 South Morton	IN	—	2,000	2,000	—	100.0%	100.0%	—	132,000	—	132,000	—	66.00	66.00
Ridge Plaza	NJ	69,612	45,476	115,088	100.0%	92.3%	97.0%	986,556	801,594	—	1,788,150	14.17	19.10	16.03
Eastgate Pavilion	OH	231,730	4,500	236,230	100.0%	—	100.0%	2,221,017	132,750	—	2,353,767	9.58	—	9.96
Shops at Otty	OR	—	9,845	9,845	—	100.0%	100.0%	—	268,603	122,500	391,103	—	27.28	27.28
Plaza at Cedar Hill	TX	227,106	72,741	299,847	100.0%	100.0%	100.0%	2,183,961	1,419,914	0	3,603,875	9.62	19.52	12.02
Sunland Towne Centre	TX	277,131	30,343	307,474	100.0%	95.1%	99.5%	2,527,022	484,896	104,809	3,116,727	9.12	16.81	9.84
Galleria Plaza	TX	31,396	12,910	44,306	100.0%	100.0%	100.0%	722,108	361,116	—	1,083,224	—	27.97	24.45
Cedar Hill Village	TX	32,231	12,031	44,262	100.0%	78.8%	94.2%	483,465	189,620	—	673,085	—	20.00	16.14
Preston Commons	TX	—	27,564	27,564	—	90.0%	90.0%	—	587,502	—	587,502	—	23.69	23.69
Burlington Coat Factory	TX	107,400	—	107,400	100.0%	—	100.0%	510,150	—	—	510,150	4.75	—	4.75
Plaza Volente	TX	105,000	51,333	156,333	100.0%	100.0%	100.0%	1,155,000	1,298,150	100,000	2,553,150	11.00	25.29	15.69
Market Street Village	TX	137,246	12,254	149,500	100.0%	100.0%	100.0%	1,570,081	341,277	115,700	2,027,058	11.44	27.85	12.79
50th & 12th	WA	14,500	—	14,500	100.0%	—	100.0%	475,000	—	—	475,000	32.76	—	32.76
176th & Meridian	WA	14,560	—	14,560	100.0%	—	100.0%	433,000	—	—	433,000	29.74	—	29.74
Four Corner Square	WA	20,512	52,587	73,099	100.0%	88.2%	91.5%	126,672	671,137	—	797,809	6.18	14.48	11.93
Total		3,603,009	1,386,626	4,989,635	96.9%	85.1%	93.6%	31,669,867	$ 22,175,335	$ 2,879,413	$ 56,724,615	$ 9.07	$ 18.79	$ 11.52

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

p. 34 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06

ACQUISITION OF  OTHER PROPERTIES
AS OF SEPTEMBER 30, 2006

Name of Operating Property	MSA	Date Acquired	Purchase Price	Assumed Debt	Total GLA	Owned GLA	Major Tenants and Non-Owned Anchors
Pine Ridge Crossing	Naples	7/6/06	$22,500,000	none	258,882	105,515	Publix, Target (non-owned), Bealls (non-owned)
Riverchase	Naples	7/6/06	$15,500,000	none	78,340	78,340	Publix
Courthouse Shadows	Naples	7/6/06	$19,750,000	none	134,867	134,867	Albertson’s, OfficeMax
			$57,750,000		472,089	318,722

p. 35 Kite Realty Group Supplemental Financial and Operating Statistics – 9/30/06