Kite Realty Group Trust
September 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 events or otherwise.
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COMPANY OVERVIEW
Balance Sheet Management
Continue to Manage Debt Maturities
Execute Capital Plan
Development
Complete Current Development Pipeline
78% pre-leased or committed
Commence construction of Visible Shadow
Pipeline
Internal Growth
Operational Efficiencies
Minimize 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 June 30, 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 GLA 1
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 Pipelines 1,2
GEOGRAPHIC DIVERSIFICATION
COMPANY OVERVIEW
Information as of June 30, 2008
5
6
(1) As of September 8, 2008.
Information as of June 30, 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
PetSmart
2.7%
BB
3
Publix
2.4%
n/a
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 Dress for Less
1.6%
BBB
Total
21.2%
Top 10 Retail Tenants by Base Rent
GROWTH STRATEGY
STRONG UPSIDE
Only 20% occupied
Growth source for late 2008 and 2009
LOW RISK PROFILE
78% leased or committed
64% funded
Execute small shop leases and build out tenant spaces
EMBEDDED GROWTH: CURRENT DEVELOPMENTS
Information as of June 30, 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 proceeds from 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
During the years 2010 through 2012, 550,000 square feet per year will expire
(compared to 250,000 per year for the years 2008 and 2009)
POTENTIAL SAME STORE GROWTH VIA LEASE EXPIRATIONS
Dollars in thousands
Annual Base Rent Expiring Per Year
Information as of June 30, 2008
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GROWTH STRATEGY
Existing Vacancy
Operating retail portfolio is 93.0% leased
Negotiating lease for 23,000 square foot junior anchor space vacated in
early 2008 - represents 0.5% 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 June 30, 2008
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PEER GROUP COMPARISON
11
(1)
Source: FirstCall estimates as of September 8, 2008.
Assuming a peer group average multiple of 12.3x, our stock is trading
at a 33% discount
Share Price
Consensus
Company
9/5/2008
Estimate
1
Multiple
Federal Realty
$75.88
$3.89
19.5x
Acadia Realty Trust
$23.50
$1.34
17.5x
Equity One, Inc
$20.70
$1.37
15.1x
Kimco Realty Corporation
$37.81
$2.71
14.0x
Regency Centers Corp
$61.67
$4.55
13.6x
Weingarten Realty
$33.34
$3.16
10.6x
Cedar Shopping Centers
$13.02
$1.24
10.5x
Inland Real Estate Corp
$15.02
$1.46
10.3x
Ramco Gershenson
$22.89
$2.49
9.2x
Developers Diversified
$35.18
$3.89
9.0x
Average
12.9x
Kite Realty Group
$11.63
$1.26
9.2x
Priced with Average Multiple
$16.28
12.9x
Current Discount
-40.0%
PEER GROUP COMPARISON
Our dividend yield remains attractive
12
(1)
Source: Company filings.
Share
Current
Price
Annual
Company
9/5/2008
Dividend
1
Yield
Ramco Gershenson
$22.89
$1.85
8.1%
Developers Diversified
$35.18
$2.76
7.8%
Kite Realty Group
$11.63
$0.82
7.1%
Cedar Shopping Centers
$13.02
$0.90
6.9%
Inland Real Estate Corp
$15.02
$0.98
6.5%
Weingarten Realty
$33.34
$2.10
6.3%
Equity One, Inc
$20.70
$1.20
5.8%
Regency Centers Corp
$61.67
$2.90
4.7%
Kimco Realty Corporation
$37.81
$1.76
4.7%
Acadia Realty Trust
$23.50
$0.84
3.6%
Federal Realty
$75.88
$2.60
3.4%
DEVELOPMENT & REDEVELOPMENT PIPELINE
(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 a 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 June 30, 2008
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Project
MSA
Projected Total
GLA
1
% Leased /
Committed
3
Total Est. Cost
(000s)
Anchor Tenants
Bayport Commons
2
Tampa, FL
286,000
91.0%
$27,600
Target (non-owned), Michael’s, Best Buy,
PetSmart
Cobblestone Plaza
2
Ft. Lauderdale, FL
163,600
75.1%
$47,000
Whole Foods Market, Staples
South Elgin Commons I
Chicago, IL
45,000
100.0%
$9,200
LA Fitness
Beacon Hill Phase Il
2
Crown Point, IN
19,160
33.4%
$5,000
Strack & VanTil's (non-owned), Walgreens (non-
owned)
Spring Mill Medical II
2
Indianapolis, IN
41,000
100.0%
$8,500
Medical Practice Groups
Eddy Street Commons I
4
South Bend, IN
465,000
61.2%
$35,000
Follette Bookstore, retail, office
Gateway Shopping Ctr
2
Seattle, WA
298,600
84.5%
$28,000
Ross Dress for Less, Rite Aid, PetSmart,
Kohl’s (non-owned), Winco (non-owned)
Sub-Total
1,318,360
77.5%
$160,300
Redevelopments
Glendale Town Center
Indianapolis, IN
685,000
93.9%
$15,000
Target (non-owned), Lowe’s (non-owned),
Macy’s, Staples
Shops at Eagle Creek
Naples, FL
72,271
55.3%
$3,500
Staples
Rivers Edge Shopping Ctr
Indianapolis, IN
110,896
79.0%
$5,000
Pending
Bolton Plaza
Jacksonville, FL
172,938
18.6%
TBD
Pending
Sub-Total
1,041,105
$23,500
2,359,465
$183,800
Total Current Development and
Redevelopment
VISIBLE SHADOW PIPELINE
(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 June 30, 2008
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Project
KRG % Owned
MSA
Est. Total
GLA
1
Est. Total
Cost
1
(000s)
Potential Tenancy
Parkside Town Commons
2
40%
Raleigh, NC
1,500,000
$148,000
Frank Theatres, Discount Dept.
Stores, Jr. Boxes, Restaurants
Delray Marketplace
3
50%
Delray Beach, FL
318,000
$100,000
Publix, Frank Theatres, Jr.
Boxes, Shops, Restaurants
Maple Valley
100%
Seattle, WA
156,000
$36,000
Hardware Store, Drug Store,
Shops, Restaurants
Broadstone Station (Apex)
100%
Raleigh, NC
345,000
$25,600
Super Wal-Mart (non-owned), Jr.
Boxes, Pad sales
South Elgin Commons II
100%
Chicago, IL
263,000
$17,000
Jr. Boxes, SuperTarget (non-
owned)
Total Visible Shadow Pipeline
2,582,000
$326,600
DEVELOPMENT PIPELINE
A CASE STUDY IN RISK MITIGATION: EDDY STREET COMMONS
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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
$35 million Phase I, which will include retail and office, was only recently added to the
Current Development Pipeline. Phase I will also include a $35 million multi-family
component that will be developed and operated by a third party.
Three goals were set and accomplished before significant capital was 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 June 30, 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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STRONG DEMOGRAPHICS
DEVELOPMENT SUCCESS NOT DEPENDENT ON GROWTH
Source: Applied Geographic Solutions
$488M
$190M
Expenditure Potential
$466M
$186M
Expenditure Potential
$84,716
$87,910
Average HH Income
$77,007
$77,012
Average HH Income
2.3%
2.8%
Projected Annual Growth
1.8%
1.8%
Projected Annual Growth
133,272
51,023
2012 Est. Population
136,673
54,416
2012 Est. Population
118,951
44,549
2007 Est. Population
124,977
49,691
2007 Est. Population
5 Mile
3 Mile
Development Pipeline
5 Mile
3 Mile
Operating Portfolio
Radius
Radius
Operating Portfolio vs. Development Pipeline
Portfolio Demographic Comparison
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EXECUTE ON STRATEGY TO ENSURE CAPITAL AVAILABILITY
CAPITAL PLAN
Information as of June 30, 2008
Credit Facility and Cash:
Unsecured Term Loan:
Potential Asset Sales:
Targeted Asset Transfer to JVs:
Targeted Liquidity Level:
$44 million
$55 million funded
$5 million in negotiation
$25 million
$30 to $35 million
$75 to $100 million
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MANAGING DEBT MATURITIES
AGGRESSIVE REFINANCING, SOLID EXECUTION
Information as of June 30, 2008
2009 Consolidated Debt Maturities:
Construction Loans with Existing Extension Options:
Negotiating Extensions/Mini Perms:
Q4 2009 Maturities:
New Construction Loan:
$136 million of debt maturities with relationship
construction lenders
Only $28 million of secured loan maturities in late 2009
$190 million
$75 million
$57 million
$49 million
$9 million
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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%
9 years
EVP & CFO
Dan Sink
23.2%
8.2%
18 years
President & CEO
John Kite
4.1%
14 years
Sr. EVP & COO
Tom McGowan
10.7%
48 years
Chairman
Al Kite
Ownership 1
Tenure with
Company
(1) As of August 25, 2008, and includes units of Operating Partnership.
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OPERATING METRICS
For the Three Months Ended June 30, 2008
2.7x
2.6x
Fixed Charge Coverage 2
7.2%
4.8%
G&A / Revenue from Rental
Properties
94.9%
93.5%
Portfolio % Leased
71%
66%
FFO Payout %
70.2%
73.2%
NOI / Revenue
Selected
Peer Group
Average 1
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
Diverse tenant mix with
conservative exposure
IN CONCLUSION
A CLEAR STRATEGY
2008 – 2012 Growth initiatives
Shadow pipeline
Internal growth
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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