Wachovia Securities Equity Conference
June 23-26, 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 2007 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 even
ts or otherwise.
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COMPANY OVERVIEW
Balance Sheet Management
Development
Complete Current Development Pipeline
72% pre-leased or committed
Commence construction of Visible Shadow Pipeline
Execute capital plan
Continue to Manage Debt Maturities
Internal Growth
Operational Efficiencies
Existing Vacancy
PRIMARY OBJECTIVES FOR THE COMPANY
3
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 and Wal-Mart will
continue to create shopping center traffic.
COMPANY OVERVIEW
Information as of March 31, 2008
(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
4
(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 in the Current Development, Redevelopment, and Visible Shadow Pipelines.
Projected Total GLA Including Pipelines1,2
GEOGRAPHIC DIVERSIFICATION
COMPANY OVERVIEW
Information as of March 31, 2008
5
6
(1)
As of June 11, 2008.
Information as of March 31, 2008 except as noted
COMPANY OVERVIEW
STRONG TENANT DIVERSITY
% of Portfolio
S&P
Annualized Base Rent
Credit Rating
1
1
Lowe's Home Improvement
3.4%
A+
2
Publix
2.4%
n/a
3
Petsmart
2.2%
BB
4
Marsh Supermarkets
2.2%
n/a
5
Circuit City
2.1%
n/a
6
Bed Bath & Beyond
1.8%
BBB
7
Office Depot
1.8%
BB+
8
Staples
1.6%
BBB+
9
Dick's Sporting Goods
1.6%
n/a
10
Ross Stores
1.6%
BBB
Total
20.7%
Top 10 Retail Tenants by Base Rent
GROWTH STRATEGY
STRONG UPSIDE
Only 21% occupied
Growth source for late 2008 and early 2009
LOW RISK PROFILE
72% leased or committed
50% funded
Execute small shop leases and build out tenant spaces
EMBEDDED GROWTH: CURRENT DEVELOPMENTS
Information as of March 31, 2008
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GROWTH STRATEGY
A CASE STUDY: RIVERS EDGE SHOPPING CENTER
Location: Keystone-Castleton, the most heavily traveled retail corridor in Indianapolis
Competitive Advantage: Off-market pricing, long-standing relationships
Capitalization: Partially funded by non-core, net-lease asset sale
Leasing Upside: 20% vacant plus below market rents in place
Development Upside: Maximize site with potential additional GLA
Asset Management Upside: Improve access, visibility
Risk Mitigation: Potential double digit returns through repositioning while in place rents
provide smooth transition
SELECTIVE ACQUISITIONS
8
GROWTH STRATEGY
Nearly 30 percent ($21 million) of annualized base rent expires from 2010 to 2012
From 2010 to 2012, over 560,000 square feet per year will expire (compared to 250,000 per
year from 2008 to 2009)
SAME STORE GROWTH VIA LEASE EXPIRATIONS
Dollars in thousands
Annual Base Rent Expiring Per Year
Information as of March 31, 2008
9
GROWTH STRATEGY
Existing Vacancy
Operating retail portfolio is 92.8 percent leased
348,000 square feet are available to be leased
Negotiating lease for 25,000 square foot junior anchor space vacated early 2008 –
equates to .5% increase in occupancy
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
EMPHASIZING INTERNAL GROWTH
Information as of March 31, 2008
10
PEER GROUP COMPARISON
11
(1)
Source: FirstCall mean estimate as of June 11, 2008.
Assuming a peer group average multiple of 12.8x, our stock is trading at a 26%
discount
Share Price
Consensus
Company
6/11/2008
Estimate
1
Multiple
Federal Realty
$77.00
$3.91
19.7x
Acadia Realty Trust
$24.16
$1.32
18.3x
Equity One, Inc
$22.12
$1.43
15.5x
Regency Centers Corp
$62.89
$4.59
13.7x
Kimco Realty Corporation
$36.52
$2.78
13.1x
Weingarten Realty
$32.61
$3.18
10.3x
Inland Real Estate Corp
$14.58
$1.46
10.0x
Developers Diversified
$38.04
$3.94
9.7x
Cedar Shopping Centers
$11.91
$1.24
9.6x
Ramco Gershenson
$21.47
$2.48
8.7x
Average
12.8x
Kite Realty Group
$13.13
$1.29
10.2x
Priced with Average Multiple
$16.57
12.8x
Current Discount
-26.2%
PEER GROUP COMPARISON
Our dividend yield remains attractive
12
(1)
Source: Company filings.
Share
Current
Price
Annual
Company
6/11/2008
Dividend
1
Yield
Ramco Gershenson
$21.47
$1.85
8.6%
Cedar Shopping Centers
$11.91
$0.90
7.6%
Developers Diversified
$38.04
$2.76
7.3%
Inland Real Estate Corp
$14.58
$0.98
6.7%
Weingarten Realty
$32.61
$2.10
6.4%
Kite Realty Group
$13.13
$0.82
6.2%
Equity One, Inc
$22.12
$1.20
5.4%
Regency Centers Corp
$62.89
$2.90
4.6%
Kimco Realty Corporation
$36.52
$1.60
4.4%
Acadia Realty Trust
$24.16
$0.84
3.5%
Federal Realty
$77.00
$2.44
3.2%
DEVELOPMENT & REDEVELOPMENT PIPELINE
Staples
$3,500
55.3%
72,271
Naples, FL
Shops at Eagle Creek
Pending
$5,000
79.0%
110,896
Indianapolis, IN
Rivers Edge Shopping Ctr.
Medical Practice Groups
$8,500
100.0%
41,000
Indianapolis, IN
Spring Mill Medical II
88.0%
71.5%
79.0%
52.3%
100.0%
33.4%
75.1%
87.3%
% Leased/
Committed3
$23,500
868,167
Sub-Total
Redevelopments
Target (non-owned), Lowe’s (non-owned),
Macy’s, Staples
$15,000
685,000
Indianapolis, IN
Glendale Town Center
$184,600
1,283,860
Sub-Total
Whole Foods, Staples
$47,000
163,600
Ft. Lauderdale, FL
Cobblestone Plaza2
Seattle, WA
South Bend, IN
Indianapolis, IN
Crown Point, IN
Tampa, FL
MSA
Project
Projected
Total GLA1
Total Est.
Cost (000s)
Anchor Tenants
Bayport Commons2
286,000
$27,300
Target (non-owned), Michael’s,
Best Buy, PetSmart
Beacon Hill Phase Il2
19,160
$5,000
Strack & VanTil's (non-owned), Walgreens
(non-owned)
54th & College
20,100
$2,500
Fresh Market
Eddy Street Commons I4
465,000
$70,000
Follette Books, retail, office, apartments
Gateway Shopping Ctr2
289,000
$24,300
Ross Stores, PetSmart, Kohl’s (non-
owned), Winco (non-owned)
Total Current Development and Redevelopment
2,152,027
$208,100
(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 includes leases under negotiation for which the company has signed non-binding letter of intent.
(4)
The Company is the master developer for this project, and its share of Phase I estimated project costs is approximately $35 million.
Information as of March 31, 2008
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VISIBLE SHADOW PIPELINE
Power Center
$26,200
308,000
Chicago, IL
100%
South Elgin Commons
$321,800
2,627,000
Total Visible Shadow Pipeline
Power Center
$25,600
345,000
Raleigh, NC
100%
Broadstone Station (Apex)
$36,000
$100,000
$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
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.
Information as of March 31, 2008
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DEVELOPMENT PIPELINE
A CASE STUDY IN RISK MITIGATION: EDDY STREET COMMONS
$200 million mixed-use development next to the University of Notre Dame in South Bend,
IN will be completed in phases
$70 million Phase I, which will include retail, office and multifamily, was only recently added
to the Current Development Pipeline
Three goals were set and accomplished before significant capital would be spent:
One, the land was fully entitled with a planned unit development designation
Two, Tax Increment Financing (TIF) and other municipal incentives totaling $35M
were funded
Three, final deal structure with the University of Notre Dame was completed and Kite
acquired and ground leases separate parcels
Joint venture arrangements for multi-family and hotel components will be utilized to mitigate
risk and maximize expertise
Additional land for residential units can be acquired from the university at our discretion and
will be based solely on residential market demand
Information as of March 31, 2008
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DEVELOPMENT PIPELINE
A CASE STUDY IN RISK MITIGATION: EDDY STREET COMMONS
Phase I – Retail, Office, Multi-family, Parking Garage
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DEVELOPMENT PIPELINE
VALUE CREATION EMBEDDED IN CURRENT 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 37,414,689 common shares and operating partnership units outstanding as of March 31, 2008.
$2.46
Per Outstanding Share/Unit 3
$92M
Estimated Value Creation
$(296M)
Less Cost
$388M
Value at 6.5% Cap Rate
$25.2M
Projected NOI
8.5%
Projected Yield
$296M
Total Pipeline Cost - KRG Share
$165M
Visible Shadow Pipeline 1,2
$131M
Current Development Pipeline 1
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STRONG DEMOGRAPHICS
DEVELOPMENT NOT DEPENDENT ON GROWTH
$466M
$186M
Expenditure Potential
$77,007
$77,012
Average HH Income
1.8%
1.8%
Projected Annual Growth
136,673
54,416
2012 Est. Population
124,977
49,691
2007 Est. Population
Source: Applied Geographic Solutions
5 Mile
3 Mile
Operating Portfolio
Radius
5 Mile
3 Mile
Development Pipeline
Radius
$488M
$190M
Expenditure Potential
$84,716
$87,910
Average HH Income
2.3%
2.8%
Projected Annual Growth
133,272
51,023
2012 Est. Population
118,951
44,549
2007 Est. Population
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MANAGING DEBT MATURITIES
AGGRESSIVE REFINANCING, SOLID EXECUTION
AS OF SEPTEMBER 30, 2007
2008 Maturities: $118 million
$109.4 million construction/land loans
$8.6 million other variable and mini-perm loans
Current conditions and long-standing relationships have allowed us to refinance and interest rate
hedge many of the recent extensions with pricing preferable to the current permanent loan market
Maintained flexibility in a difficult credit environment
AS OF MARCH 31, 2008
2008 Maturities: $21 million
$18.5 million construction loans
2 loans with late 2008 maturities
$2.5 million other variable and mini-perm
loans
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COMMITTED MANAGEMENT
Senior management owns approximately 23 percent of the
Company and has acquired over 400,000 shares and 800,000
units since the IPO at a cost of approximately $21M
0.2%
8 years
EVP & CFO
Dan Sink
23.2%
8.2%
16 years
President & CEO
John Kite
4.1%
12 years
Sr. EVP & COO
Tom McGowan
10.7%
47 years
Executive Chairman
Al Kite
Ownership 1
Tenure with
Company
(1)
As of March 31, 2008, and includes units of Operating Partnership.
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OPERATING METRICS
For the Three Months Ended March 31, 2008
2.7x
2.7x
Fixed Charge Coverage2
6.3%
6.0%
G&A / Revenue from Rental
Properties
94.5%
93.2%
Portfolio % Leased
67%
66%
FFO Payout %
70.0%
73.9%
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.
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A SOLID FOUNDATION
Healthy pay-out ratio
Strong fixed charge coverage
Capital available for development
pipeline
‘A’ locations
High occupancy
Below market rents
IN CONCLUSION
A CLEAR STRATEGY
2008 – 2012 Growth initiatives
Shadow pipeline
Internal growth
Financial strength
Good real estate wins
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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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