ANALYST AND INVESTOR MEETING
JANUARY 15, 2008
DISCLAIMER
This presentation may include certain “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements include, but are not limited to, our plans, objectives, expectations and
intentions and other statements contained in this document that are not historical facts
and statements identified by words such as “expects”, “anticipates”, “intends”, “plans”,
“believes”, “seeks”, “estimates” or words of similar meaning. These statements are
based on our current beliefs or expectations and are inherently subject to significant
uncertainties and changes in circumstances, many of which are beyond our control.
Actual results may differ materially from these expectations due to changes in global
political, economic, business, competitive, market and regulatory risk factors.
Information concerning risk factors that could affect Kite Realty Group Trust’s actual
results is contained in the Company’s reports filed from time to time with the Securities
and Exchange Commission, including its 2006 Annual Report on Form 10-K and its
quarterly reports on Form 10-Q. Kite Realty Group Trust does not undertake any
obligation to update any forward-looking statements contained in this document, as a
result of new information, future events or otherwise.
2
PRESENTATION SUMMARY
64
FFO Guidance Reconciliation
61
Speaker Biographies
----------------------Q&A----------------------
55
Closing Remarks
37
Panel Discussion
--------------------BREAK--------------------
30
Capital Plan/2008 Guidance
25
Market Research Process
12
Development Business
8
Growth Strategy
4
Welcome & Company Overview
PAGE
3
COMPANY OVERVIEW
Manage Current Debt Maturities
Development
Complete Current Development Pipeline
Commence construction of Visible Shadow Pipeline
Current Pipeline financing secured (80% funded)
Capital plan for Visible Shadow Pipeline
Realize Operating Efficiencies
Balance Sheet Management
2008 PRIMARY OBJECTIVES FOR THE COMPANY
John Kite, CEO
4
Consumer Behavior
Nationwide consumption levels will fluctuate, but a portion of the consumer’s behavior is derived from
necessity. Grocery-anchored centers and value-oriented retailers such as Target will continue to create
shopping center traffic.
PROPERTY TYPE ALLOCATION
John Kite, CEO
COMPANY OVERVIEW
Information as of September 30, 2007
(1)
Includes Projected Total GLA for properties in the Current Development/Redevelopment Pipeline. Total GLA includes owned GLA,
square footage attributable to non-owned outlot structures on land that the Company owns, and non-owned anchor space that
currently exists or is under construction.
Property Type Allocation by Projected total GLA1
5
(1) Total GLA includes owned GLA, square footage attributable to non-owned outlot structures on land that the Company owns, and
non-owned anchor space that currently exists or is under construction.
(2) Includes Projected Total GLA for properties on the Current Development, Redevelopment, and Visible Shadow Pipelines.
Projected Total GLA Including Pipelines1,2
GEOGRAPHIC DIVERSIFICATION
John Kite, CEO
COMPANY OVERVIEW
Information as of September 30, 2007
6
7
Information as of September 30, 2007 except as noted
(1)
Subsequent to September 30, 2007, the Company successfully negotiated a lease termination with Circuit City at Sunland Towne
Center in El Paso, TX effective Q1 of 2008. This lease termination is reflected in the table above.
(2)
As of January 8, 2008.
COMPANY OVERVIEW
STRONG TENANT DIVERSITY
John Kite, CEO
% of Portfolio
S&P
Annualized Base Rent
Credit Rating
2
1.
Lowe's Home Improvement
3.6%
A+
2.
Publix
2.6%
n/a
3.
Marsh Supermarkets
2.3%
n/a
4.
Circuit City
1
2.2%
n/a
5.
Bed Bath & Beyond
1.9%
BBB
6.
Dick's Sporting Goods
1.7%
n/a
7.
Ross Stores
1.7%
BBB
8.
HEB Grocery Company
1.6%
n/a
9.
Office Depot
1.5%
BBB-
10.
Petsmart
1.4%
BB
Total
20.5%
Top 10 Retail Tenants by Base Rent
GROWTH STRATEGY
Significant risk behind us: 76% leased or committed
Significant upside ahead of us: 33% occupied
Growth source for late 2008 and early 2009
Execute small shop leases and build out tenant spaces
24% remaining to be leased: 140,000 square feet of shops
Information as of September 30, 2007
EMBEDDED GROWTH: CURRENT DEVELOPMENTS
John Kite, CEO
8
GROWTH STRATEGY
Utilize development infrastructure for value-added opportunities
Target under-utilized properties with below market rents on great real estate
Partially fund by non-core asset sales
A history of executing on off-market opportunities
SELECTIVE ACQUISITIONS
John Kite, CEO
9
GROWTH STRATEGY
Nearly 30 percent ($20 million) of annualized base rent expires from 2010 to 2012
From 2010 to 2012, over 500,000 square feet per year will expire (compared to 220,000 per year from 2008 to 2009)
480,000 square feet and $6.2 million of annualized base rent from the state of Florida alone
Information as of September 30, 2007
SAME STORE GROWTH VIA LEASE EXPIRATIONS
John Kite, CEO
Dollars in thousands
Annual Base Rent Expiring Per Year
10
GROWTH STRATEGY
Existing Vacancy
Operating retail portfolio is a healthy 94.8 percent leased
240,000 square feet are available to be leased
Leasing one quarter of this space at our portfolio average shop rent of $20 per square
foot could generate approximately $.03 per share of FFO
Operational Efficiencies
Leveraging bargaining power with national providers
Maintain class-A properties while managing to the CAM caps
Controlling variable costs – insurance and real estate taxes
Ancillary Income
3rd Party Construction and Service Fee Revenue
Leveraging our in-house construction company to generate FFO
Utilize current infrastructure to attract 3rd party contracts
Merchant building as a source of capital
Information as of September 30, 2007
EMPHASIZING INTERNAL GROWTH
John Kite, CEO
11
CURRENT DEVELOPMENT & REDEVELOPMENT PIPELINE
Current Development Pipeline is 80% funded
Development risks have been mitigated
Primary focus on final lease up of small shops
Information as of September 30, 2007
CURRENT DEVELOPMENTS
Tom McGowan, COO
THE DEVELOPMENT BUSINESS
12
DEVELOPMENT & REDEVELOPMENT PIPELINE
Information as of September 30, 2007
55.3%
82.9%
75.7%
79.0%
80.9%
80.3%
100.0%
17.3%
33.4%
70.3%
87.5%
89.2%
Percent
Committed3
Staples
$3,500
72,271
Naples, FL
Shops at Eagle Creek
$18,500
757,271
Sub-Total
Redevelopments
Target (non-owned), Lowe’s
$15,000
685,000
Indianapolis, IN
Glendale Town Center
$167,200
1,283,864
Sub-Total
Whole Foods, Staples
$47,000
163,600
Ft. Lauderdale, FL
Cobblestone Plaza 2
Seattle, WA
Tri-Cities, WA
Chicago, IL
Indianapolis, IN
Indianapolis, IN
Crown Point, IN
Tampa, FL
Naples, FL
MSA
Project
Projected
Total GLA1
Total Est.
Cost (000s)
Anchor Tenants
Tarpon Springs Plaza
276,346
$29,200
Target (non-owned), Staples,
Cost Plus, AC Moore
Bayport Commons 2
286,000
$25,000
Target (non-owned), Michael’s,
Best Buy, PetSmart
Beacon Hill Phase Il 2
19,160
$5,000
Strack & VanTil's (non-owned),
Walgreens (non-owned)
Bridgewater Marketplace I
50,820
$11,300
Walgreens (non-owned)
54th & College
20,100
$2,500
Fresh Market
Naperville Marketplace
151,607
$16,500
Caputo's Fresh Market (non-owned), TJ
Maxx
Sandifur Plaza 2
27,231
$6,400
Walgreens
Gateway Shopping Ctr 2
289,000
$24,300
Ross, PetSmart, Kohl’s (non-owned),
Winco (non-owned)
Total Dev. and Redev. Pipeline
2,041,135
$185,700
(1) Includes owned GLA, plus square footage attributable to non-owned outlot structures and non-owned outlot anchor space.
(2) Held in a joint venture entity.
(3) Percent Committed (as used in the table above and elsewhere in the presentation includes leases under negotiation for which the
company has signed non-binding letter of intent.
13
VISIBLE SHADOW PIPELINE
$320 million pipeline (KRG share is $164 million)
Progressing towards construction commencement
Construction will not commence prior to sufficient tenant commitment
Information as of September 30, 2007
FUTURE DEVELOPMENTS
Tom McGowan, COO
THE DEVELOPMENT BUSINESS
14
VISIBLE SHADOW PIPELINE - Information as of September 30, 2007
Power Center
$25,600
345,000
Raleigh, NC
100%
Broadstone Station (Apex)
Power Center
$26,200
308,000
Chicago, IL
100%
South Elgin Commons
Medical Office
$8,500
41,000
Carmel, IN
50%
Spring Mill Medical II3
$320,300
$36,000
$90,000
$134,000
Est. Total
Cost1
(000s)
100%
50%
40%
KRG
% Owned
Maple Valley
Delray
Marketplace3
Parkside Town
Commons2
Project
Mixed Use Center
1,500,000
Raleigh, NC
Grocery, Theater
Jr. Boxes, Shops,
Restaurants
318,000
Delray Beach, FL
2,668,000
Grocery, Hardware,
Shops, Restaurants
156,000
Seattle, WA
Potential Tenancy
Est. Total
GLA1
MSA
(1) Total Estimated Cost and Estimated Total GLA based on preliminary siteplans.
(2) Acquired in a joint venture with Prudential Real Estate Investors. KRG’s ownership interest will change to 20% upon commencement of
construction.
(3) Held in a joint venture entity.
THE DEVELOPMENT BUSINESS
15
VISIBLE SHADOW PIPELINE
Parkside Town Commons
THE DEVELOPMENT BUSINESS
16
VISIBLE SHADOW PIPELINE
Delray Marketplace
THE DEVELOPMENT BUSINESS
17
SHADOW PIPELINE
Assessing viability without spending significant capital
Active and constant process to source new deals
Analyzing joint venture opportunities with private developers
Eddy Street Commons at Notre Dame
FUTURE DEVELOPMENTS
Tom McGowan, COO
THE DEVELOPMENT BUSINESS
18
SHADOW PIPELINE PROJECTS
Eddy Street Commons at Notre Dame
THE DEVELOPMENT BUSINESS
19
SHADOW PIPELINE PROJECTS
Eddy Street Commons at Notre Dame
90,000 square feet of ground floor retail
75,000 square feet of office space
268 apartments (sell or lease air rights)
255 room full service hotel with 51 condos (JV)
139 room limited service hotel (JV)
240 for sale residential units – phasing tied to demand
THE DEVELOPMENT BUSINESS
20
SHADOW PIPELINE PROJECTS
Eddy Street Commons at Notre Dame
Fully zoned and entitled
Secured approvals for approximately $35 million TIF
Finalizing arrangement with Notre Dame
THE DEVELOPMENT BUSINESS
21
SHADOW PIPELINE PROJECTS
Eddy Street Commons at Notre Dame
www.eddycommons.com
THE DEVELOPMENT BUSINESS
Please visit www.eddycommons.com
to view the 2:30 minute video
22
TODAY’S DEVELOPMENT ENVIRONMENT
Tom McGowan, COO
Demand and Competition
Retail demand remains for ‘A’ locations
Restrictive credit markets have thinned the herd of skilled developers
Land owners and retailers place a premium on teaming with experienced developers
Leasing Focus
Creative marketing approaches with retailers
Retailer “wish lists” are best managed through long-standing, successful relationships
Levering retailer relationships
Maintaining the Value Spread
Positive outlook on cost trends
Flight to quality in the acquisition market will protect the value of our developments
THE DEVELOPMENT BUSINESS
23
THE DEVELOPMENT BUSINESS
VALUE CREATION EMBEDDED IN COMBINED DEVELOPMENT PIPELINE
(1) Adjusted to account for the Company’s share of projects held in joint ventures.
(2) Reflects Parkside Town Commons being developed within the Prudential joint venture with the Company owning 20 percent upon
commencement of construction.
(3) Based on 37,316,256 common shares and operating partnership units outstanding as of September 30, 2007.
$2.36
Per Outstanding Share/Unit 3
$88M
Estimated Value Creation
(283M)
Less Cost
$371M
Value at 6.5% Cap Rate
$24.1M
Projected NOI
8.5%
Projected Yield
$283M
Total Pipeline Cost - KRG Share
$164M
Visible Shadow Pipeline 1,2
$119M
Current Development Pipeline 1
24
25
Source: Applied Geographic Solutions
DEVELOPMENT NOT DEPENDENT ON GROWTH
John Fox, Vice President of Market Research
MARKET RESEARCH PROCESS
Operating Portfolio
3 Mile
5 Mile
Development Pipeline
3 Mile
5 Mile
2007 Est. Population
49,691
124,977
2007 Est. Population
44,549
118,951
2012 Est. Population
54,416
136,673
2012 Est. Population
133,272
Projected Annual Growth
1.8%
1.8%
Projected Annual Growth
2.8%
2.3%
Average HH Income
$77,012
$77,007
Average HH Income
$87,910
$84,716
Expenditure Potential
$186M
$466M
Expenditure Potential
$190M
$488M
Portfolio Demographic Comparison
Operating Portfolio vs. Development Pipeline
Radius
Radius
MARKET RESEARCH PROCESS
26
951 & 41 Area
ACTIVE & FUTURE SUBDIVISTIONS
Source: Hanley Wood
27
NAPLES AREA:
TARGET LOCATIONS
28
Source: Applied Geographic Solutions
MARKET RESEARCH PROCESS
29
CAPITAL PLAN
COMPANY LEVEL STRATEGY
Dan Sink, CFO
Capital Plan Projections
Current Development Pipeline – Total Cost of $167 million with $133 million funded
80% Funded as of 9/30/07
Construction loan proceeds in place to fund remaining $34 million of cost
Visible Shadow Pipeline – KRG’s share of $164 million with $66 million funded
Parkside Town Commons
Current land loan to be converted to construction loan at commencement of construction (100% of cost)
Delray Marketplace
Equity from line in project currently
Construction loan upon anchor lease signing and construction commencement
Maple Valley
Equity from line funded initial land acquisition
Construction loan upon anchor lease signing and construction commencement
Broadstone Station - Apex
Project equity funded via land sales to anchor tenants
Construction loan upon anchor lease signing and construction commencement
Spring Mill II & South Elgin
Financed with construction loans and sold at completion
Shadow Pipeline
Funded with JV partners, construction loans, sale of non-core assets, and line of credit
Our partners’ share of consolidated JV debt is approximately $60 million as of September 30,2007
30
CAPITAL PLAN
COMPANY LEVEL STRATEGY
Dan Sink, CFO
Aggressively Refinancing Debt – CONFIDENT about Execution
2008 Maturities: $118 million
$109.4 million construction/land loans
$8.6 million other variable and mini-perm loans
Executed or negotiating refinancing of debt
$37 million refinanced for 12 to 24 months
$81 million in final negotiations with terms consistent with previous loans
Hedging to maturity for accretive spread and maximum flexibility
31
OPERATING METRICS
For the Three Months Ended September 30, 2007
2.7x
2.8x
Fixed Charge Coverage2
6.5%
5.0%
G&A /Total Revenue
95.1%
94.6%
Portfolio % Leased
65%
64%
FFO Payout %
71.4%
73.6%
NOI / Revenue
Selected
Peer Group
Average1
KRG
(1)
Peer Group consists of KIM, DDR, AKR, REG and RPT.
(2)
Defined as EBITDA divided by Interest Expense plus Preferred Dividends.
32
2008 GUIDANCE
COMPANY LEVEL STRATEGY
Dan Sink, CFO
2008 Outlook – Earnings Guidance1
KRG has provided 2008 FFO guidance with a range of $1.28 to $1.33 per share
Major Assumptions
Includes the removal of two properties from operations due to their planned redevelopment
(approximately $.02 reduction)
Represents FFO growth at the mid-point over 2007 consensus of approximately 4%
Timely completion of previously announced development projects
No material 2008 property acquisition and disposition activity
Analyzing sale of Spring Mill Medical Phase I & II upon completion
Analyzing potential sales of non-core assets and land parcels
Increase in Same Property NOI of 1.5% to 2%
General and Administrative expense of $6.5 million to $6.7 million
Construction and Service profit before tax of $3 million to $5 million
NOI to Revenue ratio ranging from 74% to 76%
FFO from land sales and merchant building transactions as a percentage of FFO consistent with
prior year
(1)
See Appendix for reconciliation of per share 2008 FFO guidance.
33
CAPITAL PLAN
Goal: Take advantage of low interest rates in a volatile market while maintaining flexibility
COMPANY LEVEL STRATEGY
George McMannis, Senior Vice President of Finance & Capital Markets
Market Overview
Permanent Loan Market – CMBS, Insurance Companies
Construction Loan Market
Joint Venture Capital
2008 Maturities
Majority of the 2008 maturities are construction loans
Hedging Strategy
Minimize interest rate risk
Control floating rate debt
Banking Relationships
34
CAPITAL PLAN
COMPANY LEVEL STRATEGY
George McMannis, Senior Vice President of Finance & Capital Markets
As of 9/30/07
As of 12/31/07
Ratio of floating to fixed rate debt
35
MEETING BREAK
Webcast will continue shortly…
PANEL DISCUSSION
NAPLES: SOLID MARKET, NOT DISTRESSED
Market Overview
Residential: Not Falling Off a Cliff
Retail Landscape
New deals, new retailers
Rental Rates
Absorption
Vacancy
Market Trends
NAPLES MARKET OVERVIEW
David Stevens, Investment Properties Corporation
37
Goal: Know the market like a lifetime local
Where are the major nodes of retail and who anchors those nodes?
How are these nodes distributed throughout the geography?
Where are the existing residential pockets?
Create the KRG demographic profile to fit the market
What major retailers are not represented or require relocation?
Where are the best sites for the missing retailers?
How do we gain control of these sites?
LEARNING TARGET MARKETS
Mark Jenkins, Senior Vice President of Development
PANEL DISCUSSION
38
Zoning/Site Design Guidelines
Annexation/Rezoning/Comprehensive Plan
Neighborhood Meetings
Overlay Districts/Design Guidelines
Politics
Value Creation
Traffic Entitlements/Access
Department of Transportation and local transportation requirements
Transportation Concurrency Management
Environmental Issues
Wetlands, Streams and Buffers
Mitigation
Cultural Resources
Tree Preservation
Soil and Groundwater Contamination
PREDEVELOPMENT
Doug Pedersen, Vice President of Predevelopment
PANEL DISCUSSION
Entitlement Hurdles = Barriers to Entry = VALUE CREATION
39
Estero Town Commons
PANEL DISCUSSION
40
Tarpon Springs Plaza
PANEL DISCUSSION
41
951 & 41 (Tamiami Crossing)
PANEL DISCUSSION
42
Why does KRG have in-house construction capabilities?
Streamlines the process from conception to design to completion
Eliminates the middle man
Build wholesale, value retail
Market & Cost Trending
In 2007, construction costs increased 2.6%1 nationally compared to 10.6%2 in 2006
and 9.5% 2 in 2005
Major components of unit cost pricing relief
Global influences / demand has decreased
U.S. residential construction starts are down 24%1 from last year
THE CONSTRUCTION BUSINESS
Todd Oswald, Vice President of Construction
Sources: (1) Engineering New Record, 24 December 2007
(2) Turner Building Cost Index 2007 Third Quarter Forecast
PANEL DISCUSSION
43
-7.0
-1.0
434.02
Lumber $/MBF
+1.7
+0.3
40.45
Steel $/CWT
+6.3
0.0
101.18
Cement $/Ton
-1.1
-0.2
2676.78
Materials
%
Change
Year
%
Change
Month
DEC. 2007
Index
Value
20-CITY:
1913 = 100
THE CONSTRUCTION BUSINESS
Todd Oswald, Vice President of Construction
Pricing is expected to normalize nationally barring any natural disasters
Our budget numbers carry a conservative annual increase
Materials Cost Index
Source: Engineering New Record, 24 December 2007
PANEL DISCUSSION
-24
321,185
244,707
Residential
-10
$638,904
$573,354
Total
+4
117,429
122,205
Non-Building
+3
$200,290
$206,442
Non-Residential
%
Change
11 Months
2006
11 Months
2007
Year to Date Construction Starts
Unadjusted totals in millions
44
Pre-Construction
Project Manager and Superintendent to review and critique project drawings and
specifications prior to initial bidding
Recent completion of three projects in Florida has further enhanced our relationships with
key counties in Southwest Florida.
Estimating
Indexing and volatile items
Incorporating a “grass-roots” approach to obtaining quality pricing
Timberline Software has been implemented to allow our estimating department to retain
better accuracy of past estimates to provide a clear historical database.
Minimizing pricing risk – 99% of KRG’s construction performed under fixed price contracts
Contracting Strategies
Creating strategic alliances with trades that provide value engineering
Continue to develop strategic relationships with subcontractors
THE CONSTRUCTION BUSINESS
Todd Oswald, Vice President of Construction
PANEL DISCUSSION
45
THE CONSTRUCTION BUSINESS
Todd Oswald, Vice President of Construction
PANEL DISCUSSION
SAFETY
COST MGMT
QUALITY
SCHEDULE
CONSTRUCTION CORE VALUES
46
PANEL DISCUSSION
47
Insulated Operating Portfolio
Well located properties with an average age of approximately 7 years
Limited exposure with only 41 retail leases expected to expire in 2008
Nearly 50% of these leases have been renewed or are in negotiations
Strong ratio of National/Regional to Local tenants
Secure Current Development Portfolio
Small shop leasing remains
Open anchor tenants performing well
Flight to Quality
Example: Cobblestone Plaza in Fort Lauderdale, FL - 75% committed before
vertical construction has commenced
Visible Shadow Pipeline Progress
‘A’ locations in ‘A’ markets
4 of 5 retail projects are over 40% leased or committed
LEASING ENVIRONMENT
Gregg Poetz, Senior Vice President of Leasing
PANEL DISCUSSION
48
Florida Landscape: Still Strong
KRG core retailers like Target, Dick’s Sporting Goods, Kohl’s, Staples, Petsmart, and
Best Buy have made Florida part of the store growth strategy
Florida’s 18 million residents have created strong sales for retailers despite the
slowing housing market
Florida ICSC August conference was 4th largest ICSC event in the country
Rent growth horizon is positive
Development leasing activity has generated lease rates as much as 50%
higher compared to other KRG markets
KRG has acquired 9 operating properties in Florida totaling more than 1 million
square feet of owned GLA
South Florida lease spreads have averaged 16% and been as high as 30%
PANEL DISCUSSION
LEASING ENVIRONMENT
Gregg Poetz, Senior Vice President of Leasing
49
Factors To Drive Leasing Strategy
Flight to Quality: ‘A’ locations in ‘A’ markets
Strong retailer relationships
Experienced and motivated leasing team
Constant communication between departments – predevelopment, development,
construction, legal
PANEL DISCUSSION
LEASING ENVIRONMENT
Gregg Poetz, Senior Vice President of Leasing
50
Same Store NOI Growth
Historical Growth: 1.5% - 2.0% range
Lease Expiration Schedule/Asset Ages - limits upside in near-term
Push renewal rates - 2007 spreads in Naples (16.4%)
Optimize CAM and RETAX recoveries - lease language
Pursue Ancillary Income Opportunities
Focus strategically at property level
Push for Same Store to be organic FFO generator
ASSET MANAGEMENT INITIATIVES
Dan Meador, Senior Vice President of Asset Management
PANEL DISCUSSION
51
Operational Efficiencies
MRI
Tenant Web Portal
Strengthening Property Management - People and Processes
Strategic Vendor Partnerships
PANEL DISCUSSION
ASSET MANAGEMENT INITIATIVES
Dan Meador, Senior Vice President of Asset Management
52
Ancillary Income
ATM - Potential strategic partnerships with 2 major banks
Outdoor Media - development properties
Cart/Kiosk Program - development properties
Tenant Web Portal
Expense items = Revenue opportunities
PANEL DISCUSSION
ASSET MANAGEMENT INITIATIVES
Dan Meador, Senior Vice President of Asset Management
53
OPEX and CAPEX Optimization
Aggregation Strategies - $400,000 savings in Indy portfolio, approaching $800,000 portfolio wide
Property Rating Strategies - service levels commensurate with asset quality
Aggressive real estate tax appeal strategies
Timing of CAPEX relative to lease rollover - maximize recapture of amortized costs
Early input into development property specifications
PANEL DISCUSSION
ASSET MANAGEMENT INITIATIVES
Dan Meador, Senior Vice President of Asset Management
54
CLOSING REMARKS
Senior management owns approximately 22 percent of the Company and has acquired
over 400,000 shares and 800,000 units since the IPO at cost of approximately $21M
0.2%
8 years
EVP & CFO
Dan Sink
22.1%
7.1%
16 years
President & CEO
John Kite
4.1%
12 years
Sr. EVP & COO
Tom McGowan
10.7%
47 years
Chairman
Al Kite
Ownership1
Tenure with
Company
(1) As of December 31, 2007, and includes units of Operating Partnership.
COMMITTED MANAGEMENT
John Kite, CEO
55
Capital Allocation Committee
Capital Allocation Committee (CAC) is comprised of the CEO, COO, and CFO
Approval is required prior to contract execution for any land acquisition,
operating property acquisition, or disposition
Department heads and representatives from Predevelopment, Development,
Leasing, Finance, Legal, and Asset Management present to CAC for each
proposed transaction
Transactions in excess of $50 million require Board approval
CLOSING REMARKS
RISK MANAGEMENT
John Kite, CEO
56
The Cornerstone: Anchor Tenant Pre-Leasing
Speculative builders need not apply
Retailer demand must exist, it cannot be projected
Over 75 percent of the Current Development Pipeline was pre-leased or committed as of
September 30, 2007
100 percent of the anchor tenant space in the Current Development Pipeline was leased
or committed as of September 30, 2007
CLOSING REMARKS
RISK MANAGEMENT
John Kite, CEO
57
A SOLID FOUNDATION
Healthy pay-out ratio
Strong fixed charge coverage
Capital available for development pipeline
‘A’ locations
High occupancy
Below market rents
CLOSING REMARKS
2008 AND BEYOND
John Kite, CEO
A CLEAR STRATEGY
2008 – 2012 Growth Initiatives
Shadow Pipeline
Internal Growth
Financial Strength
Good Real Estate Wins
Been there … done that.
58
Question and Answer Session
APPENDIX
Presenter Biographies
FFO Guidance Reconciliation
PRESENTER BIOGRAPHIES
Mark Jenkins, Senior Vice President of Development
Mark heads all retail development for the Company across the United States. His daily responsibilities include
deal sourcing, land procurement, entitlement negotiations, and anchor tenant negotiations. Before joining Kite
Realty Group in 1991, Mark worked for Smith Barney.
Industry Experience: 17 Years
Gregg Poetz, Senior Vice President of Leasing
Gregg‘s current responsibilities include overseeing and managing all aspects of leasing. In addition to
managing a staff of seven full-time leasing professionals, Gregg still takes an active role in the deal making
process. Prior to joining Kite Realty Group, Gregg was employed by the Simon Property Group for eight years
where he worked in both the leasing and development departments.
Industry Experience: 19 Years
George McMannis, Senior Vice President of Finance and Capital Markets
George joined Kite Realty Group in 2000 and oversees the financing and capital market activities for the
Company. In addition, George is responsible for property acquisitions, dispositions, and financial analysis.
George started his career in commercial lending before transitioning into real estate development with Mansur
Development and Duke Realty.
Industry Experience: 25 Years
61
PRESENTER BIOGRAPHIES
Doug Pedersen, Vice President of Predevelopment Services
Doug is responsible for site planning, due diligence, design management, and securing entitlements to develop
land and acquire property. He maintains an expertise as Project Manager on certain developments while
directing a growing staff of eight people. Prior to working at Kite Realty Group, Doug spent 8 years in Chicago
performing due diligence, land planning and entitlement work for Allen Kracower & Associates and Greenberg
Farrow, an extension of Home Depot.
Industry Experience: 13 Years
Todd Oswald, Vice President of Construction
As Vice President of Construction, Todd is responsible for coordinating and directing all aspects of the project,
including contractor qualification, contractor selection, bidding, value engineering, plan review, building permits,
site development, utility coordination, schedule, project budget, owner/manager coordination, managing general
contractors, pay application approval, document control, client satisfaction, cost control and problem solving.
Industry Experience: 17 Years
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PRESENTER BIOGRAPHIES
Dan Meador, Senior Vice President of Asset Management and Redevelopment
Dan directs all asset management and redevelopment activities for Kite Realty Group. He oversees property
management and lease administration for the current 55 property operating portfolio, and he provides
direction on re-positioning and redevelopment strategies. Prior to joining Kite Realty Group in 2007, Dan was
a Vice President with ProLogis from 2003-2006. He also spent 14 years as a Senior Vice President with
Jones Lang LaSalle.
Industry Experience: 25 Years
John Fox, Vice President of Market Research
John is responsible for evaluating nationwide retail real estate markets for the development of lifestyle, community
and power shopping centers, including the gathering and analysis of relevant economic, demographic, and
competitive data. John is also responsible for designing and directing market analysis and site location studies for
new shopping center development. Prior to joining Kite Realty Group, John was Manager of Area Research for
Simon Property Group.
Industry Experience: 21 Years
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FFO GUIDANCE RECONCILIATION
RECONCILIATION OF GUIDANCE FOR THE TWELVE MONTHS ENDING DECEMBER 31, 2008
High End
Low End
$1.33
$1.28
Estimated diluted FFO1 per share
0.01
0.01
Depreciation and amortization of unconsolidated entities
0.77
0.77
Depreciation and amortization of consolidated entities
0.12
0.11
Limited Partners’ interests in Operating Partnership
$0.43
$0.39
Estimated diluted net income per share
(1) Given the nature of the Company’s business as a real estate owner and operator, the Company believes that FFO is helpful to investors when
measuring operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating
performance, such as gains (or losses) from sales of operating properties and depreciation and amortization, which can make periodic and peer
analyses of operating performance more difficult.
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CORPORATE PROFILE
Kite Realty Group Trust is a full-service, vertically integrated real estate investment
trust engaged primarily in the ownership, operation, management, leasing, acquisition,
construction, expansion, and development of high quality neighborhood and community
shopping centers in selected growth markets in the United States. The Company owns
interests in a portfolio of operating retail properties, retail properties under development,
operating commercial properties, a related parking garage, commercial property under
development and parcels of land that may be used for future development of retail or
commercial properties.
Our strategy is to maximize the cash flow of its operating properties, successfully
complete the construction and lease-up of the development portfolio and identify
additional growth opportunities in the form of new developments and acquisitions. A
significant volume of growth opportunity is sourced through the extensive network of
tenant, corporate and institutional relationships that have been established over the last
four decades. Current investments are focused in the development and acquisition of
high quality, well located shopping centers.
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