Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-32268 | |
Entity Registrant Name | KITE REALTY GROUP TRUST | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 11-3715772 | |
Entity Address, Address Line One | 30 S. Meridian Street | |
Entity Address, Address Line Two | Suite 1100 | |
Entity Address, City or Town | Indianapolis | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46204 | |
City Area Code | 317 | |
Local Phone Number | 577-5600 | |
Title of 12(b) Security | Common Shares, $0.01 par value per share | |
Trading Symbol | KRG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 219,665,639 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001286043 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Kite Realty Group, L.P. | ||
Entity Information [Line Items] | ||
Entity File Number | 333-202666-01 | |
Entity Registrant Name | KITE REALTY GROUP, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1453863 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001636315 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - KRG Trust - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Investment properties, at cost | $ 7,546,116 | $ 7,740,061 |
Less: accumulated depreciation | (1,447,549) | (1,381,770) |
Net investment properties | 6,098,567 | 6,358,291 |
Cash and cash equivalents | 153,835 | 36,413 |
Tenant and other receivables, including accrued straight-line rent of $62,035 and $55,482, respectively | 120,012 | 113,290 |
Restricted cash and escrow deposits | 4,935 | 5,017 |
Deferred costs, net | 263,884 | 304,171 |
Short-term deposits | 120,000 | 0 |
Prepaid and other assets | 114,159 | 117,834 |
Investments in unconsolidated subsidiaries | 9,970 | 9,062 |
Assets associated with investment property held for sale | 73,558 | 0 |
Total assets | 6,958,920 | 6,944,078 |
Liabilities: | ||
Mortgage and other indebtedness, net | 3,015,626 | 2,829,202 |
Accounts payable and accrued expenses | 189,688 | 198,079 |
Deferred revenue and other liabilities | 250,103 | 272,942 |
Liabilities associated with investment property held for sale | 3,930 | 0 |
Total liabilities | 3,459,347 | 3,300,223 |
Commitments and contingencies | ||
Limited Partners’ interests in the Operating Partnership | 76,093 | 73,287 |
Equity: | ||
Common shares, $0.01 par value, 490,000,000 shares authorized, 219,654,953 and 219,448,429 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 2,197 | 2,194 |
Additional paid-in capital | 4,886,532 | 4,886,592 |
Accumulated other comprehensive income | 50,255 | 52,435 |
Accumulated deficit | (1,517,383) | (1,373,083) |
Total shareholders’ equity/Partners’ equity | 3,421,601 | 3,568,138 |
Noncontrolling interests | 1,879 | 2,430 |
Total equity | 3,423,480 | 3,570,568 |
Total liabilities and equity | $ 6,958,920 | $ 6,944,078 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - KRG Trust - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accrued straight-line rent | $ 62,035 | $ 55,482 |
Common shares, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common shares, shares authorized (in shares) | 490,000,000 | 490,000,000 |
Common shares, shares issued (in shares) | 219,654,953 | 219,448,429 |
Common shares, shares outstanding (in shares) | 219,654,953 | 219,448,429 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - KRG Trust - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||||
Rental income | $ 205,836 | $ 205,836 | $ 411,649 | $ 408,899 |
Total revenue | 212,434 | 208,759 | 419,873 | 415,509 |
Expenses: | ||||
Property operating | 28,564 | 27,232 | 56,645 | 54,546 |
Real estate taxes | 26,493 | 26,697 | 53,027 | 53,880 |
General, administrative and other | 12,966 | 14,499 | 25,750 | 27,883 |
Depreciation and amortization | 99,291 | 109,462 | 199,670 | 217,533 |
Impairment charges | 66,201 | 0 | 66,201 | 0 |
Total expenses | 233,515 | 177,890 | 401,293 | 353,842 |
(Loss) gain on sales of operating properties, net | (1,230) | 28,440 | (1,466) | 28,440 |
Operating (loss) income | (22,311) | 59,309 | 17,114 | 90,107 |
Interest expense | (30,981) | (27,205) | (61,345) | (52,630) |
Income tax expense of taxable REIT subsidiaries | (132) | (45) | (290) | (16) |
Equity in (loss) earnings of unconsolidated subsidiaries | (174) | 118 | (594) | (126) |
Gain on sale of unconsolidated property, net | 0 | 0 | 2,325 | 0 |
Other income, net | 4,295 | 304 | 7,923 | 707 |
Net (loss) income | (49,303) | 32,481 | (34,867) | 38,042 |
Net loss (income) attributable to noncontrolling interests | 665 | (423) | 385 | (593) |
Net (loss) income attributable to common shareholders | $ (48,638) | $ 32,058 | $ (34,482) | $ 37,449 |
Net (loss) income per common share | ||||
Net (loss) income per common share – basic (in USD per share) | $ (0.22) | $ 0.15 | $ (0.16) | $ 0.17 |
Net (loss) income per common share – diluted (in USD per share) | $ (0.22) | $ 0.15 | $ (0.16) | $ 0.17 |
Weighted average common shares outstanding – basic (in shares) | 219,622,059 | 219,354,275 | 219,561,586 | 219,294,255 |
Weighted average common shares outstanding – diluted (in shares) | 219,622,059 | 220,032,366 | 219,561,586 | 219,999,440 |
Net (loss) income | $ (49,303) | $ 32,481 | $ (34,867) | $ 38,042 |
Change in fair value of derivatives | (4,708) | 8,642 | (2,166) | (3,003) |
Total comprehensive (loss) income | (54,011) | 41,123 | (37,033) | 35,039 |
Comprehensive loss (income) attributable to noncontrolling interests | 737 | (529) | 372 | (611) |
Comprehensive (loss) income attributable to the Company | (53,274) | 40,594 | (36,661) | 34,428 |
Other property-related revenue | ||||
Revenue: | ||||
Other revenue | 3,146 | 1,883 | 4,457 | 3,799 |
Fee income | ||||
Revenue: | ||||
Other revenue | $ 3,452 | $ 1,040 | $ 3,767 | $ 2,811 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - KRG Trust - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 219,185,658 | ||||
Balance at beginning of period at Dec. 31, 2022 | $ 3,766,515 | $ 2,192 | $ 4,897,736 | $ 74,344 | $ (1,207,757) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock compensation activity (in shares) | 140,240 | ||||
Stock compensation activity | 2,135 | $ 1 | 2,134 | ||
Other comprehensive income (loss) | (11,557) | (11,557) | |||
Distributions to common shareholders | (52,659) | (52,659) | |||
Net income (loss) attributable to common shareholders | 5,391 | 5,391 | |||
Adjustment to redeemable noncontrolling interests | (3,821) | (3,821) | |||
Balance at end of period (in shares) at Mar. 31, 2023 | 219,325,898 | ||||
Balance at end of period at Mar. 31, 2023 | 3,706,004 | $ 2,193 | 4,896,049 | 62,787 | (1,255,025) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock compensation activity (in shares) | 48,377 | ||||
Stock compensation activity | 2,960 | $ 1 | 2,959 | ||
Other comprehensive income (loss) | 8,536 | 8,536 | |||
Distributions to common shareholders | (52,650) | (52,650) | |||
Net income (loss) attributable to common shareholders | 32,058 | 32,058 | |||
Adjustment to redeemable noncontrolling interests | (4,101) | (4,101) | |||
Balance at end of period (in shares) at Jun. 30, 2023 | 219,374,275 | ||||
Balance at end of period at Jun. 30, 2023 | $ 3,692,807 | $ 2,194 | 4,894,907 | 71,323 | (1,275,617) |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 219,448,429 | 219,448,429 | |||
Balance at beginning of period at Dec. 31, 2023 | $ 3,568,138 | $ 2,194 | 4,886,592 | 52,435 | (1,373,083) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock compensation activity (in shares) | 155,433 | ||||
Stock compensation activity | 1,993 | $ 2 | 1,991 | ||
Other comprehensive income (loss) | 2,456 | 2,456 | |||
Distributions to common shareholders | (54,901) | (54,901) | |||
Net income (loss) attributable to common shareholders | 14,156 | 14,156 | |||
Adjustment to redeemable noncontrolling interests | (1,010) | (1,010) | |||
Balance at end of period (in shares) at Mar. 31, 2024 | 219,603,862 | ||||
Balance at end of period at Mar. 31, 2024 | 3,530,832 | $ 2,196 | 4,887,573 | 54,891 | (1,413,828) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock compensation activity (in shares) | 51,091 | ||||
Stock compensation activity | 3,078 | $ 1 | 3,077 | ||
Other comprehensive income (loss) | (4,636) | (4,636) | |||
Distributions to common shareholders | (54,917) | (54,917) | |||
Net income (loss) attributable to common shareholders | (48,638) | (48,638) | |||
Adjustment to redeemable noncontrolling interests | $ (4,118) | (4,118) | |||
Balance at end of period (in shares) at Jun. 30, 2024 | 219,654,953 | 219,654,953 | |||
Balance at end of period at Jun. 30, 2024 | $ 3,421,601 | $ 2,197 | $ 4,886,532 | $ 50,255 | $ (1,517,383) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - KRG Trust - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (34,867) | $ 38,042 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 201,586 | 219,315 |
Loss (gain) on sales of operating properties, net | 1,466 | (28,440) |
Gain on sale of unconsolidated property, net | (2,325) | 0 |
Impairment charges | 66,201 | 0 |
Straight-line rent | (6,780) | (6,958) |
Compensation expense for equity awards | 5,386 | 5,133 |
Amortization of debt fair value adjustments | (6,463) | (6,688) |
Amortization of in-place lease liabilities | (4,656) | (5,375) |
Changes in assets and liabilities: | ||
Tenant receivables | (3,157) | 268 |
Deferred costs and other assets | (9,237) | (14,074) |
Accounts payable, accrued expenses, deferred revenue and other liabilities | (11,468) | (20,798) |
Net cash provided by operating activities | 195,686 | 180,425 |
Cash flows from investing activities: | ||
Capital expenditures | (67,131) | (67,767) |
Net proceeds from sales of land | 4,855 | 917 |
Net proceeds from sales of operating properties | 29,809 | 78,556 |
Investment in short-term deposits | (265,000) | 0 |
Proceeds from short-term deposits | 145,000 | 0 |
Small business loan repayments | 0 | 287 |
Change in construction payables | (2,806) | (3,980) |
Distribution from unconsolidated joint venture | 1,618 | 0 |
Capital contribution to unconsolidated joint venture | (946) | 0 |
Net cash (used in) provided by investing activities | (154,601) | 8,013 |
Cash flows from financing activities: | ||
Proceeds from issuance of common shares, net | 37 | 40 |
Repurchases of common shares upon the vesting of restricted shares | (867) | (731) |
Debt and equity issuance costs | (3,640) | (54) |
Loan proceeds | 385,345 | 293,095 |
Loan payments | (192,180) | (361,162) |
Distributions paid – common shareholders | (109,763) | (105,243) |
Distributions paid – redeemable noncontrolling interests | (1,760) | (1,399) |
Distributions to noncontrolling interests | (692) | 0 |
Net cash provided by (used in) financing activities | 76,480 | (175,454) |
Net change in cash, cash equivalents and restricted cash | 117,565 | 12,984 |
Cash, cash equivalents and restricted cash, beginning of period | 41,430 | 121,970 |
Cash, cash equivalents and restricted cash, end of period | $ 158,995 | $ 134,954 |
Consolidated Balance Sheets (_3
Consolidated Balance Sheets (Unaudited) - KRG, LP - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Investment properties, at cost | $ 7,546,116 | $ 7,740,061 |
Less: accumulated depreciation | (1,447,549) | (1,381,770) |
Net investment properties | 6,098,567 | 6,358,291 |
Cash and cash equivalents | 153,835 | 36,413 |
Tenant and other receivables, including accrued straight-line rent of $62,035 and $55,482, respectively | 120,012 | 113,290 |
Restricted cash and escrow deposits | 4,935 | 5,017 |
Deferred costs, net | 263,884 | 304,171 |
Short-term deposits | 120,000 | 0 |
Prepaid and other assets | 114,159 | 117,834 |
Investments in unconsolidated subsidiaries | 9,970 | 9,062 |
Assets associated with investment property held for sale | 73,558 | 0 |
Total assets | 6,958,920 | 6,944,078 |
Liabilities: | ||
Mortgage and other indebtedness, net | 3,015,626 | 2,829,202 |
Accounts payable and accrued expenses | 189,688 | 198,079 |
Deferred revenue and other liabilities | 250,103 | 272,942 |
Liabilities associated with investment property held for sale | 3,930 | 0 |
Total liabilities | 3,459,347 | 3,300,223 |
Commitments and contingencies | ||
Limited Partners’ interests in the Operating Partnership | 76,093 | 73,287 |
Partners’ Equity: | ||
Common equity, 219,654,953 and 219,448,429 units issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 2,197 | 2,194 |
Accumulated other comprehensive income | 50,255 | 52,435 |
Total shareholders’ equity/Partners’ equity | 3,421,601 | 3,568,138 |
Noncontrolling interests | 1,879 | 2,430 |
Total equity | 3,423,480 | 3,570,568 |
Total liabilities and equity | 6,958,920 | 6,944,078 |
Kite Realty Group, L.P. | ||
Assets: | ||
Investment properties, at cost | 7,546,116 | 7,740,061 |
Less: accumulated depreciation | (1,447,549) | (1,381,770) |
Net investment properties | 6,098,567 | 6,358,291 |
Cash and cash equivalents | 153,835 | 36,413 |
Tenant and other receivables, including accrued straight-line rent of $62,035 and $55,482, respectively | 120,012 | 113,290 |
Restricted cash and escrow deposits | 4,935 | 5,017 |
Deferred costs, net | 263,884 | 304,171 |
Short-term deposits | 120,000 | 0 |
Prepaid and other assets | 114,159 | 117,834 |
Investments in unconsolidated subsidiaries | 9,970 | 9,062 |
Assets associated with investment property held for sale | 73,558 | 0 |
Total assets | 6,958,920 | 6,944,078 |
Liabilities: | ||
Mortgage and other indebtedness, net | 3,015,626 | 2,829,202 |
Accounts payable and accrued expenses | 189,688 | 198,079 |
Deferred revenue and other liabilities | 250,103 | 272,942 |
Liabilities associated with investment property held for sale | 3,930 | 0 |
Total liabilities | 3,459,347 | 3,300,223 |
Commitments and contingencies | ||
Limited Partners’ interests in the Operating Partnership | 76,093 | 73,287 |
Partners’ Equity: | ||
Common equity, 219,654,953 and 219,448,429 units issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 3,371,346 | 3,515,703 |
Accumulated other comprehensive income | 50,255 | 52,435 |
Total shareholders’ equity/Partners’ equity | 3,421,601 | 3,568,138 |
Noncontrolling interests | 1,879 | 2,430 |
Total equity | 3,423,480 | 3,570,568 |
Total liabilities and equity | $ 6,958,920 | $ 6,944,078 |
Consolidated Balance Sheets (_4
Consolidated Balance Sheets (Unaudited) (Parenthetical) - KRG, LP - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued straight-line rent | $ 62,035 | $ 55,482 |
Common shares, shares issued (in shares) | 219,654,953 | 219,448,429 |
Common shares, shares outstanding (in shares) | 219,654,953 | 219,448,429 |
Kite Realty Group, L.P. | ||
Accrued straight-line rent | $ 62,035 | $ 55,482 |
Common shares, shares issued (in shares) | 219,654,953 | 219,448,429 |
Common shares, shares outstanding (in shares) | 219,654,953 | 219,448,429 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - KRG, LP - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||||
Rental income | $ 205,836 | $ 205,836 | $ 411,649 | $ 408,899 |
Total revenue | 212,434 | 208,759 | 419,873 | 415,509 |
Expenses: | ||||
Property operating | 28,564 | 27,232 | 56,645 | 54,546 |
Real estate taxes | 26,493 | 26,697 | 53,027 | 53,880 |
General, administrative and other | 12,966 | 14,499 | 25,750 | 27,883 |
Depreciation and amortization | 99,291 | 109,462 | 199,670 | 217,533 |
Impairment charges | 66,201 | 0 | 66,201 | 0 |
Total expenses | 233,515 | 177,890 | 401,293 | 353,842 |
(Loss) gain on sales of operating properties, net | (1,230) | 28,440 | (1,466) | 28,440 |
Operating (loss) income | (22,311) | 59,309 | 17,114 | 90,107 |
Interest expense | (30,981) | (27,205) | (61,345) | (52,630) |
Income tax expense of taxable REIT subsidiaries | (132) | (45) | (290) | (16) |
Equity in (loss) earnings of unconsolidated subsidiaries | (174) | 118 | (594) | (126) |
Gain on sale of unconsolidated property, net | 0 | 0 | 2,325 | 0 |
Other income, net | 4,295 | 304 | 7,923 | 707 |
Net (loss) income | (49,303) | 32,481 | (34,867) | 38,042 |
Net income attributable to noncontrolling interests | 665 | (423) | 385 | (593) |
Net (loss) income attributable to common shareholders | $ (48,638) | $ 32,058 | $ (34,482) | $ 37,449 |
Net (loss) income per common share | ||||
Net (loss) income per common unit – basic (in USD per share) | $ (0.22) | $ 0.15 | $ (0.16) | $ 0.17 |
Net (loss) income per common unit – diluted (in USD per share) | $ (0.22) | $ 0.15 | $ (0.16) | $ 0.17 |
Weighted average common units outstanding – basic (in shares) | 219,622,059 | 219,354,275 | 219,561,586 | 219,294,255 |
Weighted average common units outstanding – diluted (in shares) | 219,622,059 | 220,032,366 | 219,561,586 | 219,999,440 |
Net (loss) income | $ (49,303) | $ 32,481 | $ (34,867) | $ 38,042 |
Change in fair value of derivatives | (4,708) | 8,642 | (2,166) | (3,003) |
Total comprehensive (loss) income | (54,011) | 41,123 | (37,033) | 35,039 |
Comprehensive income attributable to noncontrolling interests | 737 | (529) | 372 | (611) |
Comprehensive (loss) income attributable to the Company | (53,274) | 40,594 | (36,661) | 34,428 |
Other property-related revenue | ||||
Revenue: | ||||
Other revenue | 3,146 | 1,883 | 4,457 | 3,799 |
Fee income | ||||
Revenue: | ||||
Other revenue | 3,452 | 1,040 | 3,767 | 2,811 |
Kite Realty Group, L.P. | ||||
Revenue: | ||||
Rental income | 205,836 | 205,836 | 411,649 | 408,899 |
Total revenue | 212,434 | 208,759 | 419,873 | 415,509 |
Expenses: | ||||
Property operating | 28,564 | 27,232 | 56,645 | 54,546 |
Real estate taxes | 26,493 | 26,697 | 53,027 | 53,880 |
General, administrative and other | 12,966 | 14,499 | 25,750 | 27,883 |
Depreciation and amortization | 99,291 | 109,462 | 199,670 | 217,533 |
Impairment charges | 66,201 | 0 | 66,201 | 0 |
Total expenses | 233,515 | 177,890 | 401,293 | 353,842 |
(Loss) gain on sales of operating properties, net | (1,230) | 28,440 | (1,466) | 28,440 |
Operating (loss) income | (22,311) | 59,309 | 17,114 | 90,107 |
Interest expense | (30,981) | (27,205) | (61,345) | (52,630) |
Income tax expense of taxable REIT subsidiaries | (132) | (45) | (290) | (16) |
Equity in (loss) earnings of unconsolidated subsidiaries | (174) | 118 | (594) | (126) |
Gain on sale of unconsolidated property, net | 0 | 0 | 2,325 | 0 |
Other income, net | 4,295 | 304 | 7,923 | 707 |
Net (loss) income | (49,303) | 32,481 | (34,867) | 38,042 |
Net income attributable to noncontrolling interests | (74) | (30) | (141) | (134) |
Net (loss) income attributable to common shareholders | (49,377) | 32,451 | (35,008) | 37,908 |
Allocation of net (loss) income: | ||||
Limited Partners | (739) | 393 | (526) | 459 |
Parent Company | $ (48,638) | $ 32,058 | $ (34,482) | $ 37,449 |
Net (loss) income per common share | ||||
Net (loss) income per common unit – basic (in USD per share) | $ (0.22) | $ 0.15 | $ (0.16) | $ 0.17 |
Net (loss) income per common unit – diluted (in USD per share) | $ (0.22) | $ 0.15 | $ (0.16) | $ 0.17 |
Weighted average common units outstanding – basic (in shares) | 223,329,063 | 222,388,487 | 223,219,523 | 222,287,815 |
Weighted average common units outstanding – diluted (in shares) | 223,329,063 | 223,066,578 | 223,219,523 | 222,993,000 |
Net (loss) income | $ (49,303) | $ 32,481 | $ (34,867) | $ 38,042 |
Change in fair value of derivatives | (4,708) | 8,642 | (2,166) | (3,003) |
Total comprehensive (loss) income | (54,011) | 41,123 | (37,033) | 35,039 |
Comprehensive income attributable to noncontrolling interests | (74) | (30) | (141) | (134) |
Comprehensive (loss) income attributable to the Company | (54,085) | 41,093 | (37,174) | 34,905 |
Kite Realty Group, L.P. | Other property-related revenue | ||||
Revenue: | ||||
Other revenue | 3,146 | 1,883 | 4,457 | 3,799 |
Kite Realty Group, L.P. | Fee income | ||||
Revenue: | ||||
Other revenue | $ 3,452 | $ 1,040 | $ 3,767 | $ 2,811 |
Consolidated Statements of Part
Consolidated Statements of Partners' Equity (Unaudited) - KRG, LP - USD ($) $ in Thousands | Total | Kite Realty Group, L.P. | Kite Realty Group, L.P. General Partner Common Equity | Kite Realty Group, L.P. General Partner Accumulated Other Comprehensive Income (Loss) |
Partners' capital, balance at beginning of period at Dec. 31, 2022 | $ 3,766,515 | $ 3,692,171 | $ 74,344 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Stock compensation activity | 2,135 | 2,135 | ||
Other comprehensive income (loss) attributable to Parent Company | $ (11,557) | (11,557) | (11,557) | |
Distributions to Parent Company | (52,659) | (52,659) | ||
Net income (loss) attributable to Parent Company | 5,391 | 5,391 | 5,391 | |
Adjustment to redeemable noncontrolling interests | (3,821) | (3,821) | ||
Partners' capital, balance at end of period at Mar. 31, 2023 | 3,706,004 | 3,643,217 | 62,787 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Stock compensation activity | 2,960 | 2,960 | ||
Other comprehensive income (loss) attributable to Parent Company | 8,536 | 8,536 | 8,536 | |
Distributions to Parent Company | (52,650) | (52,650) | ||
Net income (loss) attributable to Parent Company | 32,058 | 32,058 | 32,058 | |
Adjustment to redeemable noncontrolling interests | (4,101) | (4,101) | ||
Partners' capital, balance at end of period at Jun. 30, 2023 | 3,692,807 | 3,621,484 | 71,323 | |
Partners' capital, balance at beginning of period at Dec. 31, 2023 | 3,568,138 | 3,515,703 | 52,435 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Stock compensation activity | 1,993 | 1,993 | ||
Other comprehensive income (loss) attributable to Parent Company | 2,456 | 2,456 | 2,456 | |
Distributions to Parent Company | (54,901) | (54,901) | ||
Net income (loss) attributable to Parent Company | 14,156 | 14,156 | 14,156 | |
Adjustment to redeemable noncontrolling interests | (1,010) | (1,010) | ||
Partners' capital, balance at end of period at Mar. 31, 2024 | 3,530,832 | 3,475,941 | 54,891 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Stock compensation activity | 3,078 | 3,078 | ||
Other comprehensive income (loss) attributable to Parent Company | (4,636) | (4,636) | (4,636) | |
Distributions to Parent Company | (54,917) | (54,917) | ||
Net income (loss) attributable to Parent Company | $ (48,638) | (48,638) | (48,638) | |
Adjustment to redeemable noncontrolling interests | (4,118) | (4,118) | ||
Partners' capital, balance at end of period at Jun. 30, 2024 | $ 3,421,601 | $ 3,371,346 | $ 50,255 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) - KRG, LP - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (34,867) | $ 38,042 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 201,586 | 219,315 |
Loss (gain) on sales of operating properties, net | 1,466 | (28,440) |
Gain on sale of unconsolidated property, net | (2,325) | 0 |
Impairment charges | 66,201 | 0 |
Straight-line rent | (6,780) | (6,958) |
Compensation expense for equity awards | 5,386 | 5,133 |
Amortization of debt fair value adjustments | (6,463) | (6,688) |
Amortization of in-place lease liabilities | (4,656) | (5,375) |
Changes in assets and liabilities: | ||
Tenant receivables | (3,157) | 268 |
Deferred costs and other assets | (9,237) | (14,074) |
Accounts payable, accrued expenses, deferred revenue and other liabilities | (11,468) | (20,798) |
Net cash provided by operating activities | 195,686 | 180,425 |
Cash flows from investing activities: | ||
Capital expenditures | (67,131) | (67,767) |
Net proceeds from sales of land | 4,855 | 917 |
Net proceeds from sales of operating properties | 29,809 | 78,556 |
Investment in short-term deposits | (265,000) | 0 |
Proceeds from short-term deposits | 145,000 | 0 |
Small business loan repayments | 0 | 287 |
Change in construction payables | (2,806) | (3,980) |
Distribution from unconsolidated joint venture | 1,618 | 0 |
Capital contribution to unconsolidated joint venture | (946) | 0 |
Net cash (used in) provided by investing activities | (154,601) | 8,013 |
Cash flows from financing activities: | ||
Contributions from the General Partner | 37 | 40 |
Repurchases of common shares upon the vesting of restricted shares | (867) | (731) |
Debt and equity issuance costs | (3,640) | (54) |
Loan proceeds | 385,345 | 293,095 |
Loan payments | (192,180) | (361,162) |
Distributions paid – common unitholders | (109,763) | (105,243) |
Distributions paid – redeemable noncontrolling interests | (1,760) | (1,399) |
Distributions to noncontrolling interests | (692) | 0 |
Net cash provided by (used in) financing activities | 76,480 | (175,454) |
Net change in cash, cash equivalents and restricted cash | 117,565 | 12,984 |
Cash, cash equivalents and restricted cash, beginning of period | 41,430 | 121,970 |
Cash, cash equivalents and restricted cash, end of period | 158,995 | 134,954 |
Kite Realty Group, L.P. | ||
Cash flows from operating activities: | ||
Net (loss) income | (34,867) | 38,042 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 201,586 | 219,315 |
Loss (gain) on sales of operating properties, net | 1,466 | (28,440) |
Gain on sale of unconsolidated property, net | (2,325) | 0 |
Impairment charges | 66,201 | 0 |
Straight-line rent | (6,780) | (6,958) |
Compensation expense for equity awards | 5,386 | 5,133 |
Amortization of debt fair value adjustments | (6,463) | (6,688) |
Amortization of in-place lease liabilities | (4,656) | (5,375) |
Changes in assets and liabilities: | ||
Tenant receivables | (3,157) | 268 |
Deferred costs and other assets | (9,237) | (14,074) |
Accounts payable, accrued expenses, deferred revenue and other liabilities | (11,468) | (20,798) |
Net cash provided by operating activities | 195,686 | 180,425 |
Cash flows from investing activities: | ||
Capital expenditures | (67,131) | (67,767) |
Net proceeds from sales of land | 4,855 | 917 |
Net proceeds from sales of operating properties | 29,809 | 78,556 |
Investment in short-term deposits | (265,000) | 0 |
Proceeds from short-term deposits | 145,000 | 0 |
Small business loan repayments | 0 | 287 |
Change in construction payables | (2,806) | (3,980) |
Distribution from unconsolidated joint venture | 1,618 | 0 |
Capital contribution to unconsolidated joint venture | (946) | 0 |
Net cash (used in) provided by investing activities | (154,601) | 8,013 |
Cash flows from financing activities: | ||
Contributions from the General Partner | 37 | 40 |
Repurchases of common shares upon the vesting of restricted shares | (867) | (731) |
Debt and equity issuance costs | (3,640) | (54) |
Loan proceeds | 385,345 | 293,095 |
Loan payments | (192,180) | (361,162) |
Distributions paid – common unitholders | (109,763) | (105,243) |
Distributions paid – redeemable noncontrolling interests | (1,760) | (1,399) |
Distributions to noncontrolling interests | (692) | 0 |
Net cash provided by (used in) financing activities | 76,480 | (175,454) |
Net change in cash, cash equivalents and restricted cash | 117,565 | 12,984 |
Cash, cash equivalents and restricted cash, beginning of period | 41,430 | 121,970 |
Cash, cash equivalents and restricted cash, end of period | $ 158,995 | $ 134,954 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Kite Realty Group Trust (the “Parent Company”), through its majority-owned subsidiary, Kite Realty Group, L.P. (the “Operating Partnership”), owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of high-quality, open-air shopping centers and mixed-use assets that are primarily grocery-anchored and located in high-growth Sun Belt markets and select strategic gateway markets in the United States. The terms “Company,” “we,” “us,” and “our” refer to the Parent Company and the Operating Partnership, collectively, and those entities owned or controlled by the Parent Company and/or the Operating Partnership. The Operating Partnership was formed on August 16, 2004, when the Parent Company contributed properties and the net proceeds from an initial public offering (“IPO”) of shares of its common stock to the Operating Partnership. The Parent Company was organized in Maryland in 2004 to succeed in the development, acquisition, construction and real estate businesses of its predecessor. We believe the Company qualifies as a real estate investment trust (“REIT”) under sections 856-860 of the Internal Revenue Code of 1986, as amended. The Parent Company is the sole general partner of the Operating Partnership and, as of June 30, 2024, owned approximately 98.3% of the common partnership interests in the Operating Partnership (“General Partner Units”). The remaining 1.7% of the common partnership interests (“Limited Partner Units” and, together with the General Partner Units, the “Common Units”) were owned by the limited partners. As the sole general partner of the Operating Partnership, the Parent Company has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Operating Partnership. The Parent Company and the Operating Partnership are operated as one enterprise. The management of the Parent Company consists of the same members as the management of the Operating Partnership. As the sole general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have any significant assets other than its investment in the Operating Partnership. The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) may have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the presentation not misleading. The unaudited consolidated financial statements as of June 30, 2024 and for the three and six months ended June 30, 2024 and 2023 include all adjustments, consisting of normal recurring adjustments, necessary in the opinion of management to present fairly the financial information set forth therein. The unaudited consolidated financial statements in this Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the combined Annual Report on Form 10-K of the Parent Company and the Operating Partnership for the year ended December 31, 2023. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reported period. Actual results could differ from these estimates. The results of operations for the interim periods are not necessarily indicative of the results that may be expected on an annual basis. As of June 30, 2024, the Company’s portfolio consisted of the following: Properties Square Footage Operating retail properties (1) 178 27,607,987 Office properties 1 287,291 Development and redevelopment projects: Carillon medical office building 1 126,000 The Corner – IN (2) 1 24,000 Hamilton Crossing Centre 1 92,283 Edwards Multiplex – Ontario 1 124,614 (1) Included within operating retail properties are 10 properties that contain an office component. Excludes one operating retail property classified as held for sale as of June 30, 2024. Of the 178 operating retail properties, 175 are consolidated within these financial statements and the remaining three are accounted for under the equity method. (2) This property is held in an unconsolidated joint venture in which the Company has a 50% ownership interest. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Components of Investment Properties The following table summarizes the composition of the Company’s investment properties as of June 30, 2024 and December 31, 2023 (in thousands) : Balance as of June 30, 2024 December 31, 2023 Land, buildings and improvements $ 7,475,763 $ 7,684,066 Construction in progress 70,353 55,995 Investment properties, at cost $ 7,546,116 $ 7,740,061 Components of Rental Income including Allowance for Uncollectible Accounts Rental income related to the Company’s operating leases is comprised of the following for the three and six months ended June 30, 2024 and 2023 (in thousands) : Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Fixed contractual lease payments – operating leases $ 161,673 $ 160,134 $ 322,213 $ 318,724 Variable lease payments – operating leases 39,663 39,876 80,133 79,630 Bad debt reserve (1,544) (233) (2,133) (1,788) Straight-line rent adjustments 2,829 2,910 6,192 6,768 Straight-line rent reserve for uncollectibility 825 504 588 190 Amortization of in-place lease liabilities, net 2,390 2,645 4,656 5,375 Rental income $ 205,836 $ 205,836 $ 411,649 $ 408,899 The Company makes estimates as to the collectability of its accounts receivable. In making these estimates, the Company reviews a variety of qualitative and quantitative data and considers such factors as the credit quality of our customer, historical write-off experience and current economic trends, to make a subjective determination. An allowance for uncollectible accounts, including future credit losses of the accrued straight-line rent receivables, is maintained for estimated losses resulting from the inability of certain tenants to meet contractual obligations under their lease agreements. Short-Term Deposits In January 2024, the Company invested $265.0 million in short-term deposits at Goldman Sachs Bank USA and KeyBank National Association. As of June 30, 2024, the Company had $120.0 million remaining in short-term deposits. The short-term deposits earned interest at a weighted average interest rate of 5.34% with a final maturity date of July 22, 2024. During the six months ended June 30, 2024, the Company earned $6.2 million of interest income on the deposits, which is recorded within “Other income, net” in the accompanying consolidated statements of operations and comprehensive income. Consolidation and Investments in Joint Ventures The accompanying financial statements are presented on a consolidated basis and include all accounts of the Parent Company, the Operating Partnership, the taxable REIT subsidiaries (“TRSs”) of the Operating Partnership, subsidiaries of the Operating Partnership that are controlled and any variable interest entities (“VIEs”) in which the Operating Partnership is the primary beneficiary. As of June 30, 2024, we owned investments in two consolidated joint ventures that were VIEs in which the partners did not have substantive participating rights and we were the primary beneficiary. As of June 30, 2024, these consolidated VIEs had mortgage debt totaling $110.9 million, which was secured by assets of the VIEs totaling $217.3 million. The Operating Partnership guarantees the mortgage debt of these VIEs. The Operating Partnership is considered a VIE as the limited partners do not hold kick-out rights or substantive participating rights. The Parent Company consolidates the Operating Partnership as it is the primary beneficiary. As of June 30, 2024, the Company also owned investments in four unconsolidated joint ventures accounted for under the equity method, which are not considered VIEs. On January 31, 2024, the joint venture that owned Glendale Center Apartments, of which we have an 11.5% ownership interest, sold the 267-unit property to a third party, resulting in a gain on sale of $20.2 million. The Company recognized its share of the gain on sale of unconsolidated property of $2.3 million during the six months ended June 30, 2024. In addition, the Company received a $1.6 million distribution upon the disposition of the property. The Company maintains an investment in the joint venture, which is in the process of winding up its activities and distributing remaining net assets. Glendale Center Apartments is adjacent to our Glendale Town Center operating retail property in the Indianapolis MSA. Income Taxes and REIT Compliance Parent Company The Parent Company has been organized and operated, and intends to continue to operate, in a manner that will enable it to maintain its qualification as a REIT for U.S. federal income tax purposes. As a result, it generally will not be subject to U.S. federal income tax on the earnings that it distributes to the extent it distributes its “REIT taxable income” (determined before the deduction for dividends paid and excluding net capital gains) to shareholders of the Parent Company and meets certain other requirements on a recurring basis. To the extent that it satisfies this distribution requirement but distributes less than 100% of its taxable income, it will be subject to U.S. federal income tax on its undistributed REIT taxable income at regular corporate income tax rates. REITs are subject to a number of organizational and operational requirements. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income tax on its taxable income at regular corporate income tax rates for a period of four years following the year in which qualification is lost. Additionally, we may also be subject to certain taxes enacted by the Inflation Reduction Act of 2022 that are applicable to non-REIT corporations, including the nondeductible 1% excise tax on certain stock repurchases. We may also be subject to certain U.S. federal, state and local taxes on our income and property and to U.S. federal income and excise taxes on our undistributed taxable income even if the Parent Company does qualify as a REIT. The Operating Partnership intends to continue to make distributions to the Parent Company in amounts sufficient to assist the Parent Company in adhering to REIT requirements and maintaining its REIT status. We have elected to treat Kite Realty Holdings, LLC and IWR Protective Corporation as TRSs with respect to the REIT, and we may elect to treat other subsidiaries as TRSs in the future. This election enables us to receive income and provide services that would otherwise be impermissible for a REIT. Deferred tax assets and liabilities are established for temporary differences between the financial reporting bases and the tax bases of assets and liabilities at the tax rates expected to be in effect when the temporary differences reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. Operating Partnership The allocated share of income and loss, other than the operations of our TRSs, is included in the income tax returns of the Operating Partnership’s partners. Accordingly, the only U.S. federal income taxes included in the accompanying consolidated financial statements are in connection with the TRSs. Noncontrolling Interests We report the non-redeemable noncontrolling interests in subsidiaries as equity, and the amount of consolidated net income attributable to these noncontrolling interests is set forth separately in the accompanying consolidated financial statements. The following table summarizes the non-redeemable noncontrolling interests in consolidated properties for the six months ended June 30, 2024 and 2023 (in thousands) : Six Months Ended June 30, 2024 2023 Noncontrolling interests balance as of January 1, $ 2,430 $ 5,370 Net income allocable to noncontrolling interests, excluding redeemable noncontrolling interests 141 134 Distributions to noncontrolling interests (692) — Noncontrolling interests balance as of June 30, $ 1,879 $ 5,504 Noncontrolling Interests – Joint Venture Prior to the October 2021 merger with Retail Properties of America, Inc. (“RPAI”), RPAI entered into a joint venture related to the development, ownership and operation of the multifamily rental portion of the expansion project at One Loudoun Downtown – Pads G & H. The Company owns 90% of the joint venture. Under terms defined in the joint venture agreement, after construction completion and stabilization of the development project (as defined in the joint venture agreement), the Company has the ability to call, and the joint venture partner has the ability to put to the Company, subject to certain conditions, the joint venture partner’s interest in the joint venture at fair value. As of June 30, 2024, these conditions for exercising the put and call options have been met but neither the Company nor the joint venture partner has exercised their respective options. The joint venture is considered a VIE primarily because the Company’s joint venture partner does not have substantive kick-out rights or substantive participating rights. The Company is considered the primary beneficiary as it has a controlling financial interest in the joint venture. As such, the Company has consolidated this joint venture and presented the joint venture partner’s interests as noncontrolling interests. Redeemable Noncontrolling Interests – Limited Partners Limited Partner Units are redeemable noncontrolling interests in the Operating Partnership. We classify redeemable noncontrolling interests in the Operating Partnership in the accompanying consolidated balance sheets outside of permanent equity because we may be required to pay cash to holders of Limited Partner Units upon redemption of their interests in the Operating Partnership or deliver registered shares upon their conversion. The carrying amount of the redeemable noncontrolling interests in the Operating Partnership is reflected at the greater of historical book value or redemption value with a corresponding adjustment to additional paid-in capital. As of June 30, 2024 and December 31, 2023, the redemption value of the redeemable noncontrolling interests in the Operating Partnership exceeded the historical book value, and the balances were accordingly adjusted to redemption value. We allocate net operating results of the Operating Partnership after noncontrolling interests in the consolidated properties based on the partners’ respective weighted average ownership interest. We adjust the redeemable noncontrolling interests in the Operating Partnership at the end of each reporting period to reflect their interests in the Operating Partnership or redemption value. This adjustment is reflected in our shareholders’ and Parent Company’s equity. For the three and six months ended June 30, 2024 and 2023, the weighted average interests of the Parent Company and the limited partners in the Operating Partnership were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Parent Company’s weighted average interest in the Operating Partnership 98.3 % 98.6 % 98.4 % 98.7 % Limited partners’ weighted average interests in the Operating Partnership 1.7 % 1.4 % 1.6 % 1.3 % As of June 30, 2024, the Parent Company’s interest and the limited partners’ redeemable noncontrolling ownership interests in the Operating Partnership were 98.3% and 1.7%. As of December 31, 2023, the Parent Company’s interest and the limited partners’ redeemable noncontrolling ownership interests in the Operating Partnership were 98.4% and 1.6%. Concurrent with the Parent Company’s IPO and related formation transactions, certain individuals received Limited Partner Units of the Operating Partnership in exchange for their interests in certain properties. The limited partners have the right to redeem Limited Partner Units for cash or, at the Parent Company’s election, common shares of the Parent Company in an amount equal to the market value of an equivalent number of common shares of the Parent Company at the time of redemption. Such common shares must be registered, which is not fully in the Parent Company’s control. Therefore, the limited partners’ interest is not reflected within permanent equity. The Parent Company also has the right to redeem the Limited Partner Units directly from the limited partner in exchange for either cash in the amount specified above or a number of its common shares equal to the number of Limited Partner Units being redeemed. There were 3,707,004 and 3,512,868 Limited Partner Units outstanding as of June 30, 2024 and December 31, 2023, respectively. The increase in Limited Partner Units outstanding from December 31, 2023 is due to non-cash compensation awards granted to our executive officers in the form of Limited Partner Units. The redeemable noncontrolling interests in the Operating Partnership for the six months ended June 30, 2024 and 2023 were as follows (in thousands) : Six Months Ended June 30, 2024 2023 Redeemable noncontrolling interests balance as of January 1, $ 73,287 $ 53,967 Net (loss) income allocable to redeemable noncontrolling interests (526) 459 Distributions declared to redeemable noncontrolling interests (1,809) (1,456) Other, net including adjustments to redemption value 5,141 7,957 Total limited partners’ interests in the Operating Partnership balance as of June 30, $ 76,093 $ 60,927 Fair Value Measurements We follow the framework established under Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures , for measuring fair value of non-financial assets and liabilities that are not required or permitted to be measured at fair value on a recurring basis but only in certain circumstances, such as a business combination or upon determination of an impairment. Assets and liabilities recorded at fair value in the accompanying consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: • Level 1 fair value inputs are quoted prices in active markets for identical instruments to which we have access. • Level 2 fair value inputs are inputs other than quoted prices included in Level 1 that are observable for similar instruments, either directly or indirectly, and appropriately consider counterparty creditworthiness in the valuation. • Level 3 fair value inputs reflect our best estimate of inputs and assumptions market participants would use in pricing an instrument at the measurement date. The inputs are unobservable in the market and significant to the valuation estimate. In instances where the determination of the fair value measurement is based upon inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Effects of Accounting Pronouncements In March 2024, the SEC issued a final rule, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This final rule is effective for the Company for the fiscal year beginning in 2025 and requires companies to annually disclose, among other things, (i) climate-related risks that have had or are reasonably likely to have a material impact on the Company, including on its strategy, results of operations, or financial condition, (ii) activities to mitigate or adapt to such risks, including a quantitative and qualitative description of material expenditures incurred and impacts on estimates and assumptions, (iii) information about oversight by a company’s board of directors of climate-related risks and management’s role in managing material climate-related risks; and (iv) information on any climate-related targets or goals that are material to the company’s business, results of operations, or financial condition. In addition, the final rule requires (i) disclosure of Scope 1 and/or Scope 2 greenhouse gas (“GHG”) emissions on a phased-in basis when those emissions are material, (ii) the filing of an attestation report covering the disclosure of the Scope 1 and/or Scope 2 emissions on a phased-in basis, and (iii) disclosure of the financial statement effects of severe weather events and other natural conditions. In April 2024, the SEC announced a stay of these climate disclosure rules pending judicial review. The Company will continue to evaluate the impact of this final rule until it becomes effective. |
DISPOSITIONS AND IMPAIRMENT CHA
DISPOSITIONS AND IMPAIRMENT CHARGES | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSITIONS AND IMPAIRMENT CHARGES | DISPOSITIONS AND IMPAIRMENT CHARGES The Company closed on the following disposition during the six months ended June 30, 2024 (dollars in thousands) : Date Property Name MSA Property Type Square Sales Price Gain (Loss) May 31, 2024 Ashland & Roosevelt Chicago Multi-tenant retail 104,176 $ 30,600 $ (1,230) The Company closed on the following dispositions during the six months ended June 30, 2023 (dollars in thousands) : Date Property Name MSA Property Type Square Sales Price Gain (Loss) May 8, 2023 Kingwood Commons Houston Multi-tenant retail 158,172 $ 27,350 $ 4,740 June 8, 2023 Pan Am Plaza & Garage Indianapolis Land & garage — 52,025 23,700 158,172 $ 79,375 $ 28,440 As of June 30, 2024, we have classified City Center, a 362,278 square foot multi-tenant retail property in the New York MSA, as held for sale as the Company has committed to a plan to sell this asset and expects that the sale will be completed within one year. This property qualified for held-for-sale accounting treatment upon meeting all applicable GAAP criteria as of June 30, 2024, at which time depreciation and amortization were ceased. In addition, the assets and liabilities associated with this property are separately classified as held for sale in the accompanying consolidated balance sheet as of June 30, 2024. No properties qualified for held-for-sale accounting treatment as of December 31, 2023. As of June 30, 2024, in connection with the preparation and review of the second quarter 2024 financial statements and in conjunction with classifying City Center as held for sale, we evaluated City Center for impairment and recorded a $66.2 million impairment charge due to changes in the facts and circumstances underlying the Company’s expected future hold period of the property. A shortening of the expected future hold period is considered an impairment indicator; therefore, we assessed the recoverability of City Center by comparing the carrying value of long-lived assets of $135.1 million as of June 30, 2024 to its estimated fair value of $69.6 million, which was determined using the income approach, less estimated selling costs of $0.7 million. The income approach involves discounting the estimated income stream and reversion (presumed sale) value of a property over an estimated hold period to a present value at a risk-adjusted rate. We used capitalization rates as a significant assumption in the valuation model, which are considered to be Level 3 inputs within the fair value hierarchy. We applied capitalization rates ranging from 6.0% to 15.0% to property income streams based upon the risk profile of the respective tenants and market rent of the leasable space. Based on this analysis, we recorded a $66.2 million non-cash impairment charge on City Center during the three months ended June 30, 2024. The following table presents the assets and liabilities associated with City Center, the investment property classified as held for sale as of June 30, 2024 (in thousands) : June 30, 2024 Assets Net investment properties $ 67,984 Tenant and other receivables 2,522 Restricted cash and escrow deposits 225 Deferred costs, net 2,577 Prepaid and other assets 250 Assets associated with investment property held for sale $ 73,558 Liabilities Accounts payable and accrued expenses $ 637 Deferred revenue and other liabilities 3,293 Liabilities associated with investment property held for sale $ 3,930 There were no discontinued operations for the six months ended June 30, 2024 and 2023 as none of the dispositions or planned dispositions represented a strategic shift that has had, or will have, a material effect on our operations or financial results. |
DEFERRED COSTS AND INTANGIBLES,
DEFERRED COSTS AND INTANGIBLES, NET | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs [Abstract] | |
DEFERRED COSTS AND INTANGIBLES, NET | DEFERRED COSTS AND INTANGIBLES, NET Deferred costs consist primarily of acquired lease intangible assets, broker fees and capitalized internal commissions incurred in connection with lease originations. Deferred leasing costs, lease intangibles and similar costs are amortized on a straight-line basis over the terms of the related leases. As of June 30, 2024 and December 31, 2023, deferred costs consisted of the following (in thousands) : June 30, 2024 December 31, 2023 Acquired lease intangible assets $ 389,158 $ 433,771 Deferred leasing costs and other 81,943 74,662 471,101 508,433 Less: accumulated amortization (204,640) (204,262) $ 266,461 $ 304,171 Less: deferred costs associated with investment property held for sale (2,577) — Deferred costs, net $ 263,884 $ 304,171 The amortization of deferred leasing costs, lease intangibles and other is included within “Depreciation and amortization” in the accompanying consolidated statements of operations and comprehensive income. The amortization of above-market lease intangibles is included as a reduction to “Rental income” in the accompanying consolidated statements of operations and comprehensive income. The amounts of such amortization included in the accompanying consolidated statements of operations and comprehensive income are as follows (in thousands) : Six Months Ended June 30, 2024 2023 Amortization of deferred leasing costs, lease intangibles and other $ 40,850 $ 57,610 Amortization of above-market lease intangibles $ 5,177 $ 6,274 |
DEFERRED REVENUE, INTANGIBLES,
DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES | DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES Deferred revenue and other liabilities consist of (i) the unamortized fair value of below-market lease liabilities recorded in connection with purchase accounting, (ii) retainage payables for development and redevelopment projects, (iii) tenant rent payments received in advance of the month in which they are due, and (iv) lease liabilities recorded upon adoption of ASU 2016-02, Leases (Topic 842) . The amortization of below-market lease liabilities is recognized as revenue over the remaining life of the leases (including option periods for leases with below-market renewal options) through 2085. Tenant rent payments received in advance are recognized as revenue in the period to which they apply, which is typically the month following their receipt. As of June 30, 2024 and December 31, 2023, deferred revenue, intangibles, net and other liabilities consisted of the following (in thousands) : June 30, 2024 December 31, 2023 Unamortized in-place lease liabilities $ 149,279 $ 159,449 Retainages payable and other 8,378 9,229 Tenant rents received in advance 27,702 35,339 Lease liabilities 68,037 68,925 $ 253,396 $ 272,942 Less: deferred revenue associated with investment property held for sale (3,293) — Deferred revenue and other liabilities $ 250,103 $ 272,942 The amortization of below-market lease intangibles is included as a component of “Rental income” in the accompanying consolidated statements of operations and comprehensive income and totaled $9.8 million and $11.6 million for the six months ended June 30, 2024 and 2023, respectively. |
MORTGAGE AND OTHER INDEBTEDNESS
MORTGAGE AND OTHER INDEBTEDNESS | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
MORTGAGE AND OTHER INDEBTEDNESS | MORTGAGE AND OTHER INDEBTEDNESS The following table summarizes the Company’s indebtedness as of June 30, 2024 and December 31, 2023 (in thousands) : June 30, 2024 December 31, 2023 Mortgages payable $ 150,761 $ 153,306 Senior unsecured notes 2,030,000 1,829,635 Unsecured term loans 820,000 820,000 Unsecured revolving line of credit — — 3,000,761 2,802,941 Unamortized discounts and premiums, net 26,147 35,765 Unamortized debt issuance costs, net (11,282) (9,504) Total mortgage and other indebtedness, net $ 3,015,626 $ 2,829,202 Consolidated indebtedness, including weighted average interest rates and weighted average maturities as of June 30, 2024, considering the impact of interest rate swaps, is summarized below (dollars in thousands) : Amount Ratio Weighted Average Weighted Average Years Fixed rate debt (1) $ 2,829,961 94 % 4.03 % 4.1 Variable rate debt (2) 170,800 6 % 8.65 % 2.2 Debt discounts, premiums and issuance costs, net 14,865 N/A N/A N/A Mortgage and other indebtedness, net $ 3,015,626 100 % 4.29 % 4.0 (1) Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of June 30, 2024, $820.0 million in variable rate debt is hedged to a fixed rate for a weighted average of 1.2 years. (2) Variable rate debt includes the portion of fixed rate debt that has been hedged by interest rate swaps. As of June 30, 2024, $155.0 million in fixed rate debt is hedged to a floating rate for a weighted average of 1.2 years. Mortgages Payable The following table summarizes the Company’s mortgages payable (dollars in thousands) : June 30, 2024 December 31, 2023 Balance Weighted Average Weighted Average Years Balance Weighted Average Weighted Average Years Fixed rate mortgages payable (1) $ 134,961 5.09 % 7.6 $ 136,306 5.09 % 8.1 Variable rate mortgage payable (2) 15,800 7.54 % 2.1 17,000 7.59 % 2.6 Total mortgages payable $ 150,761 $ 153,306 (1) The fixed rate mortgages had interest rates ranging from 3.75% to 5.73% as of June 30, 2024 and December 31, 2023. (2) The interest rate on the variable rate mortgage is based on Bloomberg Short Term Bank Yield Index (“ BSBY Mortgages payable, which are secured by certain real estate and, in some cases, by guarantees from the Operating Partnership, are generally due in monthly installments of principal and interest and mature over various terms through 2033. During the six months ended June 30, 2024, we made scheduled principal payments of $2.6 million related to amortizing loans. Unsecured Notes The following table summarizes the Company’s senior unsecured notes and exchangeable senior notes (dollars in thousands) : June 30, 2024 December 31, 2023 Maturity Date Balance Interest Rate Balance Interest Rate Senior notes – 4.58% due 2024 June 30, 2024 $ — — % $ 149,635 4.58 % Senior notes – 4.00% due 2025 March 15, 2025 350,000 4.00 % 350,000 4.00 % Senior notes – SOFR (1) September 10, 2025 80,000 8.71 % 80,000 9.27 % Senior notes – 4.08% due 2026 September 30, 2026 100,000 4.08 % 100,000 4.08 % Senior notes – 4.00% due 2026 October 1, 2026 300,000 4.00 % 300,000 4.00 % Senior exchangeable notes – 0.75% due 2027 April 1, 2027 175,000 0.75 % 175,000 0.75 % Senior notes – SOFR (2) September 10, 2027 75,000 8.81 % 75,000 9.37 % Senior notes – 4.24% due 2028 December 28, 2028 100,000 4.24 % 100,000 4.24 % Senior notes – 4.82% due 2029 June 28, 2029 100,000 4.82 % 100,000 4.82 % Senior notes – 4.75% due 2030 September 15, 2030 400,000 4.75 % 400,000 4.75 % Senior notes – 5.50% due 2034 (3) March 1, 2034 350,000 4.60 % — — % Total senior unsecured notes $ 2,030,000 $ 1,829,635 (1) $80,000 of 4.47% senior unsecured notes due 2025 has been swapped to a variable rate of three-month Secured Overnight Financing Rate (“ SOFR (2) $75,000 of 4.57% senior unsecured notes due 2027 has been swapped to a variable rate of three-month SOFR (3) The coupon rate of the Notes Due 2034 (defined below) is 5.50%; however, due to hedging activities, the Company’s interest rate is 4.60%. During the six months ended June 30, 2024, the Company completed a public offering of $350.0 million in aggregate principal amount of 5.50% senior unsecured notes due 2034 (the “Notes Due 2034”). The Notes Due 2034 were priced at 98.670% of the principal amount to yield 5.673% to maturity and will mature on March 1, 2034, unless earlier redeemed. A portion of the proceeds were used to repay the $149.6 million principal balance of the 4.58% senior unsecured notes that matured on June 30, 2024. Subsequent to June 30, 2024, the remaining proceeds were used to repay the $120.0 million unsecured term loan due July 2024 (the “$120M Term Loan”) and for general corporate purposes. Unsecured Term Loans and Revolving Line of Credit The following table summarizes the Company’s term loans and revolving line of credit (dollars in thousands) : June 30, 2024 December 31, 2023 Maturity Date Balance Interest Rate Balance Interest Rate Unsecured term loan due 2024 – fixed rate (1) July 17, 2024 $ 120,000 2.68 % $ 120,000 2.68 % Unsecured term loan due 2025 – fixed rate (2) October 24, 2025 250,000 5.09 % 250,000 5.09 % Unsecured term loan due 2026 – fixed rate (3) July 17, 2026 150,000 2.73 % 150,000 2.73 % Unsecured term loan due 2029 – fixed rate (4) July 29, 2029 300,000 3.82 % 300,000 3.82 % Total unsecured term loans $ 820,000 $ 820,000 Unsecured credit facility revolving line of credit – variable rate (5) January 8, 2026 $ — 6.48 % $ — 6.58 % (1) $120,000 of SOFR (2) $250,000 of SOFR (3) $150,000 of SOFR (4) $300,000 of SOFR (5) The revolving line of credit has two six-month extension options that the Company can exercise, at its election, subject to (i) customary representations and warranties, including, but not limited to, the absence of an event of default as defined in the unsecured credit agreement and (ii) payment of an extension fee equal to 0.075% of the revolving line of credit capacity. Unsecured Revolving Credit Facility In July 2022, the Operating Partnership, as borrower, and the Company entered into the Second Amendment (the “Second Amendment”) to the Sixth Amended and Restated Credit Agreement, dated as of July 8, 2021 (as amended, the “Credit Agreement”) with a syndicate of financial institutions to provide for an unsecured revolving credit facility aggregating $1.1 billion (the “Revolving Facility”) and a seven-year $300.0 million unsecured term loan (the “$300M Term Loan”). Under the Second Amendment, the Operating Partnership has the option, subject to certain customary conditions, to increase the Revolving Facility and/or incur additional term loans in an aggregate amount for all such increases and additional loans of up to $600.0 million, for a total facility amount of up to $2.0 billion. The Revolving Facility has a scheduled maturity date of January 8, 2026, which maturity date may be extended for up to two additional periods of six months at the Operating Partnership’s option, subject to certain conditions. Borrowings under the Revolving Facility bear interest at a rate per annum equal to SOFR plus a margin based on the Operating Partnership’s leverage ratio or credit rating, respectively, plus a facility fee based on the Operating Partnership’s leverage ratio or credit rating, respectively. The SOFR The following table summarizes the key terms of the Revolving Facility as of June 30, 2024 (dollars in thousands) : Leverage-Based Pricing Investment Grade Pricing Credit Agreement Maturity Date Extension Option Extension Fee Credit Spread Facility Fee Credit Spread Facility Fee SOFR $1,100,000 unsecured revolving line of credit 1/8/2026 2 six 0.075% 1.05%–1.50% 0.15%–0.30% 0.725%–1.40% 0.125%–0.30% 0.10% The Operating Partnership’s ability to borrow under the Credit Agreement is subject to ongoing compliance by the Operating Partnership and its subsidiaries with various restrictive covenants, including with respect to liens, transactions with affiliates, dividends, mergers and asset sales. In addition, the Credit Agreement requires that the Operating Partnership satisfy certain financial covenants, including (i) a maximum leverage ratio; (ii) a minimum fixed charge coverage ratio; (iii) a maximum secured indebtedness ratio; (iv) a maximum unsecured leverage ratio; and (v) a minimum unencumbered interest coverage ratio. As of June 30, 2024, we were in compliance with all such covenants. Unsecured Term Loans As of June 30, 2024, the Operating Partnership has the following unsecured term loans: (i) the $120M Term Loan, (ii) a $250.0 million unsecured term loan due October 2025 (the “$250M Term Loan”), (iii) a $150.0 million unsecured term loan due July 2026 (the “$150M Term Loan”), and (iv) the $300M Term Loan that matures in July 2029, each of which bears interest at a rate of SOFR The following table summarizes the key terms of the unsecured term loans as of June 30, 2024 (dollars in thousands) : Unsecured Term Loans Maturity Date Leverage-Based Pricing Investment Grade Pricing SOFR $120,000 unsecured term loan due 2024 (1) 7/17/2024 1.20% – 1.70% 0.80% – 1.65% 0.10% $250,000 unsecured term loan due 2025 10/24/2025 (2) 2.00% – 2.55% 2.00% – 2.50% 0.10% $150,000 unsecured term loan due 2026 7/17/2026 1.20% – 1.70% 0.75% – 1.60% 0.10% $300,000 unsecured term loan due 2029 7/29/2029 N/A 1.15% – 2.20% 0.10% (1) Subsequent to June 30, 2024, the $120M Term Loan was repaid with a portion of the proceeds from the Notes Due 2034. (2) The maturity date may be extended for up to three additional periods of one year each at the Operating Partnership’s option, subject to certain conditions. Under the agreement related to the $120M Term Loan and the $150M Term Loan, the Operating Partnership has the option to increase each of the term loans to $250.0 million upon the Operating Partnership’s request, subject to certain conditions, including obtaining commitments from any one or more lenders, whether or not currently party to the term loan agreement, to provide such increased amounts. The Operating Partnership is permitted to prepay each of the $120M Term Loan and $150M Term Loan, in whole or in part, at any time without being subject to a prepayment fee. The Operating Partnership has the option to increase the $250M Term Loan to $300.0 million, subject to certain conditions including obtaining commitments from any one or more lenders, whether or not currently party to the term loan agreement, to provide such increased amounts. The Operating Partnership is permitted to prepay the $250M Term Loan in whole or in part, at any time, subject to a prepayment fee if prepaid on or before October 25, 2023. The Operating Partnership is permitted to prepay the $300M Term Loan in whole or in part, at any time, subject to a prepayment fee if prepaid on or before July 29, 2024. The unsecured term loan agreements contain representations, financial and other affirmative and negative covenants and events of default that are substantially similar to those contained in the Credit Agreement. The unsecured term loan agreements all rank pari passu with the Operating Partnership’s Revolving Facility and other unsecured indebtedness of the Operating Partnership. Debt Issuance Costs Debt issuance costs are amortized over the terms of the respective loan agreements. The following amounts of amortization of debt issuance costs are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income (in thousands) : Six Months Ended June 30, 2024 2023 Amortization of debt issuance costs $ 1,916 $ 1,782 Debt Discounts and Premiums Debt discounts and premiums, including the related value of interest rate swaps that were assumed in the October 2021 merger with RPAI, are amortized over the terms of the respective loan agreements. The following amounts of amortization are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income (in thousands) : Six Months Ended June 30, 2024 2023 Amortization of debt discounts, premiums and hedge instruments $ 7,490 $ 9,998 In addition, the estimated amounts of the reduction to interest expense as of June 30, 2024 for each of the next five years and thereafter related to the amortization of debt discounts, premiums and assumed hedge instruments, assuming these instruments are held to maturity, are as follows (in thousands) : July 2024 through December 2024 $ 6,222 2025 7,807 2026 6,152 2027 5,235 2028 5,225 Thereafter 5,411 Total unamortized debt discounts, premiums and hedge instruments $ 36,052 The following table reconciles total unamortized debt discounts, premiums and hedge instruments as of June 30, 2024 to the balance of unamortized discounts and premiums, net (in thousands) : Unamortized discounts and premiums on mortgages payable, senior unsecured notes and unsecured term loans $ 34,055 Unamortized hedge instruments 1,997 Total unamortized debt discounts, premiums and hedge instruments 36,052 Unamortized hedge instruments (included in accumulated other comprehensive income) (1,997) Fair value of variable interest rate swaps (7,908) Unamortized discounts and premiums, net $ 26,147 Fair Value of Fixed and Variable Rate Debt As of June 30, 2024, the estimated fair value of fixed rate debt was $2.1 billion compared to the book value of $2.2 billion. The fair value was estimated using Level 2 and 3 inputs with cash flows discounted at current borrowing rates for similar instruments, which ranged from 5.82% to 7.02%. As of June 30, 2024, the estimated fair value of variable rate debt was $841.8 million compared to the book value of $835.8 million. The fair value was estimated using Level 2 and 3 inputs with cash flows discounted at current borrowing rates for similar instruments, which ranged from 6.49% to 6.54%. |
DERIVATIVE INSTRUMENTS, HEDGING
DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME | DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME In order to manage potential future variable interest rate risk, we enter into interest rate derivative agreements from time to time. We do not use interest rate derivative agreements for trading or speculative purposes. The agreements with each of our derivative counterparties provide that in the event of default on any of our indebtedness, we could also be declared in default on our derivative obligations. The following table summarizes the terms and fair values of the Company’s derivative financial instruments that were designated and qualified as part of a hedging relationship as of June 30, 2024 and December 31, 2023 (dollars in thousands) : Fair Value Assets (Liabilities) (1) Type of Hedge Number of Instruments Aggregate Notional Reference Rate Interest Rate Effective Date Maturity Date June 30, 2024 December 31, 2023 Cash Flow Four $ 250,000 SOFR 2.99 % 12/1/2022 10/24/2025 $ 5,700 $ 4,952 Cash Flow Two 100,000 SOFR 2.66 % 8/1/2022 8/1/2025 2,350 2,415 Cash Flow Two 200,000 SOFR 2.37 % 11/22/2023 8/1/2025 5,314 5,716 Cash Flow Three 120,000 SOFR 1.58 % 8/15/2022 7/17/2024 199 2,236 Cash Flow Three 150,000 SOFR 1.68 % 8/15/2022 7/17/2026 8,231 7,744 $ 820,000 $ 21,794 $ 23,063 Fair Value (2) Two $ 155,000 SOFR SOFR 4/23/2021 9/10/2025 $ (7,908) $ (9,408) Forward-Starting Cash Flow (3) Three $ 150,000 SOFR 3.44 % 6/28/2024 6/28/2034 $ — $ (700) (1) Derivatives in an asset position are included within “Prepaid and other assets” and derivatives in a liability position are included within “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets. (2) The derivative agreements swap a blended fixed rate of 4.52% for a blended floating rate of three-month SOFR (3) The forward-starting interest rate swaps were terminated in conjunction with the issuance of the Notes Due 2034. In December 2023, we entered into three forward-starting interest rate swap agreements with notional amounts totaling $150.0 million that swap a floating rate of compound SOFR for a fixed rate of 3.44% with an effective date of June 28, 2024 and a maturity date of June 28, 2034. These interest rate swaps fixed the interest rate on a portion of the Notes Due 2034, which were issued in January 2024, and were subsequently terminated upon issuance of the Notes Due 2034. We received $0.7 million upon termination, which is included as a component of “Accumulated other comprehensive income” in the accompanying consolidated balance sheets and is being reclassified as a reduction to interest expense over the term of the debt. In October 2022, we terminated two forward-starting interest rate swaps with notional amounts totaling $150.0 million and a maturity date of June 1, 2032 and received $30.9 million upon termination. This settlement is included as a component of “Accumulated other comprehensive income” in the accompanying consolidated balance sheets and is being reclassified to earnings over time as the hedged items are recognized in earnings. During the year ended December 31, 2023, we accelerated the reclassification of $3.1 million in accumulated other comprehensive income as a reduction to interest expense as a result of a portion of the hedged forecasted transaction becoming probable not to occur. In January 2024, we completed a public offering of the Notes Due 2034. The remaining balance in accumulated other comprehensive income is being reclassified as a reduction to interest expense over the term of the debt. These interest rate derivative agreements are the only assets or liabilities that we record at fair value on a recurring basis. The valuation of these assets and liabilities is determined using widely accepted techniques including discounted cash flow analysis. These techniques consider the contractual terms of the derivatives (including the period to maturity) and use observable market-based inputs such as interest rate curves and implied volatilities. We also incorporate credit valuation adjustments into the fair value measurements to reflect nonperformance risk on both our part and that of the respective counterparties. We have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, although the credit valuation adjustments associated with our derivatives use Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. As of June 30, 2024 and December 31, 2023, we assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations were classified within Level 2 of the fair value hierarchy. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to earnings over time as the hedged items are recognized in earnings. Approximately $4.9 million and $9.8 million was reclassified as a reduction to interest expense during the three and six months ended June 30, 2024, respectively. Approximately $3.5 million and $7.7 million was reclassified as a reduction to interest expense during the three and six months ended June 30, 2023, respectively. As interest payments on our derivatives are made over the next 12 months, we estimate the decrease to interest expense to be approximately $21.1 million, assuming the current SOFR curve. Unrealized gains and losses on our interest rate derivative agreements are the only components of the change in accumulated other comprehensive income. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY Distributions Our Board of Trustees declared a cash distribution of $0.25 per common share and Common Unit for the second quarter of 2024. This distribution was paid on July 16, 2024 to common shareholders and common unitholders of record as of July 9, 2024. For the six months ended June 30, 2024, we declared cash distributions totaling $0.50 per common share and Common Unit. For the three and six months ended June 30, 2023, we declared cash distributions of $0.24 and $0.48 per common share and Common Unit, respectively. Share Repurchase Program The Company has an existing share repurchase program under which it may repurchase, from time to time, up to a maximum of $300.0 million of its common shares (the “Share Repurchase Program”). The Company intends to fund any future repurchases under the Share Repurchase Program with cash on hand or availability under the Revolving Facility, subject to any applicable restrictions. The timing of share repurchases and the number of common shares to be repurchased under the Share Repurchase Program will depend upon prevailing market conditions, regulatory requirements and other factors. In February 2024, the Company extended the Share Repurchase Program for an additional year to February 28, 2025, if not terminated or extended prior to that date. As of June 30, 2024, the Company has not repurchased any shares under the Share Repurchase Program. |
EARNINGS PER SHARE OR UNIT
EARNINGS PER SHARE OR UNIT | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE OR UNIT | EARNINGS PER SHARE OR UNIT Basic earnings per share or unit is calculated based on the weighted average number of common shares/units outstanding during the period. Diluted earnings per share/unit is calculated based on the weighted average number of common shares/units outstanding during the period combined with the incremental average common shares/units that would have been outstanding assuming the conversion of all potentially dilutive common shares/units into common shares/units as of the earliest date possible. Potentially dilutive securities include (i) outstanding options to acquire common shares; (ii) Limited Partner Units, which may be exchanged for either cash or common shares at the Parent Company’s option and under certain circumstances; (iii) “appreciation only” long-term incentive plan units; and (iv) deferred common share units, which may be credited to the personal accounts of non-employee trustees in lieu of compensation paid in cash or the issuance of common shares to such trustees. Limited Partner Units have been omitted from the Parent Company’s denominator for the purpose of computing diluted earnings per share since the effect of including those amounts in the denominator would have no dilutive impact. Weighted average Limited Partner Units outstanding were 3.7 million for the three and six months ended June 30, 2024 and 3.0 million for the three and six months ended June 30, 2023. Due to the net loss allocable to common shareholders and common unitholders for the three and six months ended June 30, 2024, no securities had a dilutive impact for those periods. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Other Commitments and Contingencies We are obligated under various completion guarantees with certain lenders and lease agreements with tenants to complete all or portions of a development project and tenant-specific space currently under construction. We believe we currently have sufficient financing in place to fund these projects and expect to do so primarily through free cash flow or borrowings on the Revolving Facility. In 2017, we provided a repayment guaranty on a $33.8 million construction loan associated with the development of the Embassy Suites at the University of Notre Dame, consistent with our 35% ownership interest. Our portion of the repayment guaranty was limited to $5.9 million, and the guaranty’s term was through July 1, 2024, the maturity date of the construction loan. As of June 30, 2024, the outstanding loan balance was $32.3 million, of which our share was $11.3 million. Subsequent to June 30, 2024, the joint venture repaid the construction loan and we contributed $10.2 million representing our 35% share of the debt repaid. In 2021, we provided repayment and completion guaranties on loans totaling $66.2 million associated with the development of The Corner mixed-use project in the Indianapolis MSA. As of June 30, 2024, the outstanding balance of the loans was $70.1 million, of which our share was $35.1 million. Legal Proceedings We are not subject to any material litigation nor, to management’s knowledge, is any material litigation currently threatened against us. We are parties to routine litigation, claims, and administrative proceedings arising in the ordinary course of business. Management believes that such matters will not have a material adverse impact on our consolidated financial condition, results of operations or cash flows taken as a whole. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent to June 30, 2024, we: • repaid the $120.0 million unsecured term loan due July 2024 with a portion of the proceeds from the Notes Due 2034 and the corresponding interest rate swaps matured; and • contributed $10.2 million to the repayment of the construction loan at Embassy Suites at the University of Notre Dame representing our 35% share of the joint venture debt repaid. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) attributable to common shareholders | $ (48,638) | $ 14,156 | $ 32,058 | $ 5,391 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Consolidation and Investments in Joint Ventures | Consolidation and Investments in Joint Ventures The accompanying financial statements are presented on a consolidated basis and include all accounts of the Parent Company, the Operating Partnership, the taxable REIT subsidiaries (“TRSs”) of the Operating Partnership, subsidiaries of the Operating Partnership that are controlled and any variable interest entities (“VIEs”) in which the Operating Partnership is the primary beneficiary. As of June 30, 2024, we owned investments in two consolidated joint ventures that were VIEs in which the partners did not have substantive participating rights and we were the primary beneficiary. As of June 30, 2024, these consolidated VIEs had mortgage debt totaling $110.9 million, which was secured by assets of the VIEs totaling $217.3 million. The Operating Partnership guarantees the mortgage debt of these VIEs. The Operating Partnership is considered a VIE as the limited partners do not hold kick-out rights or substantive participating rights. The Parent Company consolidates the Operating Partnership as it is the primary beneficiary. As of June 30, 2024, the Company also owned investments in four unconsolidated joint ventures accounted for under the equity method, which are not considered VIEs. On January 31, 2024, the joint venture that owned Glendale Center Apartments, of which we have an 11.5% ownership interest, sold the 267-unit property to a third party, resulting in a gain on sale of $20.2 million. The Company recognized its share of the gain on sale of unconsolidated property of $2.3 million during the six months ended June 30, 2024. In addition, the Company received a $1.6 million distribution upon the disposition of the property. The Company maintains an investment in the joint venture, which is in the process of winding up its activities and distributing remaining net assets. Glendale Center Apartments is adjacent to our Glendale Town Center operating retail property in the Indianapolis MSA. |
Income Taxes and REIT Compliance | Income Taxes and REIT Compliance Parent Company The Parent Company has been organized and operated, and intends to continue to operate, in a manner that will enable it to maintain its qualification as a REIT for U.S. federal income tax purposes. As a result, it generally will not be subject to U.S. federal income tax on the earnings that it distributes to the extent it distributes its “REIT taxable income” (determined before the deduction for dividends paid and excluding net capital gains) to shareholders of the Parent Company and meets certain other requirements on a recurring basis. To the extent that it satisfies this distribution requirement but distributes less than 100% of its taxable income, it will be subject to U.S. federal income tax on its undistributed REIT taxable income at regular corporate income tax rates. REITs are subject to a number of organizational and operational requirements. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income tax on its taxable income at regular corporate income tax rates for a period of four years following the year in which qualification is lost. Additionally, we may also be subject to certain taxes enacted by the Inflation Reduction Act of 2022 that are applicable to non-REIT corporations, including the nondeductible 1% excise tax on certain stock repurchases. We may also be subject to certain U.S. federal, state and local taxes on our income and property and to U.S. federal income and excise taxes on our undistributed taxable income even if the Parent Company does qualify as a REIT. The Operating Partnership intends to continue to make distributions to the Parent Company in amounts sufficient to assist the Parent Company in adhering to REIT requirements and maintaining its REIT status. We have elected to treat Kite Realty Holdings, LLC and IWR Protective Corporation as TRSs with respect to the REIT, and we may elect to treat other subsidiaries as TRSs in the future. This election enables us to receive income and provide services that would otherwise be impermissible for a REIT. Deferred tax assets and liabilities are established for temporary differences between the financial reporting bases and the tax bases of assets and liabilities at the tax rates expected to be in effect when the temporary differences reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. Operating Partnership The allocated share of income and loss, other than the operations of our TRSs, is included in the income tax returns of the Operating Partnership’s partners. Accordingly, the only U.S. federal income taxes included in the accompanying consolidated financial statements are in connection with the TRSs. |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests – Joint Venture Prior to the October 2021 merger with Retail Properties of America, Inc. (“RPAI”), RPAI entered into a joint venture related to the development, ownership and operation of the multifamily rental portion of the expansion project at One Loudoun Downtown – Pads G & H. The Company owns 90% of the joint venture. Under terms defined in the joint venture agreement, after construction completion and stabilization of the development project (as defined in the joint venture agreement), the Company has the ability to call, and the joint venture partner has the ability to put to the Company, subject to certain conditions, the joint venture partner’s interest in the joint venture at fair value. As of June 30, 2024, these conditions for exercising the put and call options have been met but neither the Company nor the joint venture partner has exercised their respective options. The joint venture is considered a VIE primarily because the Company’s joint venture partner does not have substantive kick-out rights or substantive participating rights. The Company is considered the primary beneficiary as it has a controlling financial interest in the joint venture. As such, the Company has consolidated this joint venture and presented the joint venture partner’s interests as noncontrolling interests. Redeemable Noncontrolling Interests – Limited Partners Limited Partner Units are redeemable noncontrolling interests in the Operating Partnership. We classify redeemable noncontrolling interests in the Operating Partnership in the accompanying consolidated balance sheets outside of permanent equity because we may be required to pay cash to holders of Limited Partner Units upon redemption of their interests in the Operating Partnership or deliver registered shares upon their conversion. The carrying amount of the redeemable noncontrolling interests in the Operating Partnership is reflected at the greater of historical book value or redemption value with a corresponding adjustment to additional paid-in capital. As of June 30, 2024 and December 31, 2023, the redemption value of the redeemable noncontrolling interests in the Operating Partnership exceeded the historical book value, and the balances were accordingly adjusted to redemption value. As of June 30, 2024, the Parent Company’s interest and the limited partners’ redeemable noncontrolling ownership interests in the Operating Partnership were 98.3% and 1.7%. As of December 31, 2023, the Parent Company’s interest and the limited partners’ redeemable noncontrolling ownership interests in the Operating Partnership were 98.4% and 1.6%. Concurrent with the Parent Company’s IPO and related formation transactions, certain individuals received Limited Partner Units of the Operating Partnership in exchange for their interests in certain properties. The limited partners have the right to redeem Limited Partner Units for cash or, at the Parent Company’s election, common shares of the Parent Company in an amount equal to the market value of an equivalent number of common shares of the Parent Company at the time of redemption. Such common shares must be registered, which is not fully in the Parent Company’s control. Therefore, the limited partners’ interest is not reflected within permanent equity. The Parent Company also has the right to redeem the Limited Partner Units directly from the limited partner in exchange for either cash in the amount specified above or a number of its common shares equal to the number of Limited Partner Units being redeemed. There were 3,707,004 and 3,512,868 Limited Partner Units outstanding as of June 30, 2024 and December 31, 2023, respectively. The increase in Limited Partner Units outstanding from December 31, 2023 is due to non-cash compensation awards granted to our executive officers in the form of Limited Partner Units. |
Fair Value Measurements | Fair Value Measurements We follow the framework established under Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures , for measuring fair value of non-financial assets and liabilities that are not required or permitted to be measured at fair value on a recurring basis but only in certain circumstances, such as a business combination or upon determination of an impairment. Assets and liabilities recorded at fair value in the accompanying consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: • Level 1 fair value inputs are quoted prices in active markets for identical instruments to which we have access. • Level 2 fair value inputs are inputs other than quoted prices included in Level 1 that are observable for similar instruments, either directly or indirectly, and appropriately consider counterparty creditworthiness in the valuation. • Level 3 fair value inputs reflect our best estimate of inputs and assumptions market participants would use in pricing an instrument at the measurement date. The inputs are unobservable in the market and significant to the valuation estimate. In instances where the determination of the fair value measurement is based upon inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. |
Effects of Accounting Pronouncements | Effects of Accounting Pronouncements In March 2024, the SEC issued a final rule, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This final rule is effective for the Company for the fiscal year beginning in 2025 and requires companies to annually disclose, among other things, (i) climate-related risks that have had or are reasonably likely to have a material impact on the Company, including on its strategy, results of operations, or financial condition, (ii) activities to mitigate or adapt to such risks, including a quantitative and qualitative description of material expenditures incurred and impacts on estimates and assumptions, (iii) information about oversight by a company’s board of directors of climate-related risks and management’s role in managing material climate-related risks; and (iv) information on any climate-related targets or goals that are material to the company’s business, results of operations, or financial condition. In addition, the final rule requires (i) disclosure of Scope 1 and/or Scope 2 greenhouse gas (“GHG”) emissions on a phased-in basis when those emissions are material, (ii) the filing of an attestation report covering the disclosure of the Scope 1 and/or Scope 2 emissions on a phased-in basis, and (iii) disclosure of the financial statement effects of severe weather events and other natural conditions. In April 2024, the SEC announced a stay of these climate disclosure rules pending judicial review. The Company will continue to evaluate the impact of this final rule until it becomes effective. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Real Estate Properties | As of June 30, 2024, the Company’s portfolio consisted of the following: Properties Square Footage Operating retail properties (1) 178 27,607,987 Office properties 1 287,291 Development and redevelopment projects: Carillon medical office building 1 126,000 The Corner – IN (2) 1 24,000 Hamilton Crossing Centre 1 92,283 Edwards Multiplex – Ontario 1 124,614 (1) Included within operating retail properties are 10 properties that contain an office component. Excludes one operating retail property classified as held for sale as of June 30, 2024. Of the 178 operating retail properties, 175 are consolidated within these financial statements and the remaining three are accounted for under the equity method. (2) This property is held in an unconsolidated joint venture in which the Company has a 50% ownership interest. The following table summarizes the composition of the Company’s investment properties as of June 30, 2024 and December 31, 2023 (in thousands) : Balance as of June 30, 2024 December 31, 2023 Land, buildings and improvements $ 7,475,763 $ 7,684,066 Construction in progress 70,353 55,995 Investment properties, at cost $ 7,546,116 $ 7,740,061 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Investment Properties | As of June 30, 2024, the Company’s portfolio consisted of the following: Properties Square Footage Operating retail properties (1) 178 27,607,987 Office properties 1 287,291 Development and redevelopment projects: Carillon medical office building 1 126,000 The Corner – IN (2) 1 24,000 Hamilton Crossing Centre 1 92,283 Edwards Multiplex – Ontario 1 124,614 (1) Included within operating retail properties are 10 properties that contain an office component. Excludes one operating retail property classified as held for sale as of June 30, 2024. Of the 178 operating retail properties, 175 are consolidated within these financial statements and the remaining three are accounted for under the equity method. (2) This property is held in an unconsolidated joint venture in which the Company has a 50% ownership interest. The following table summarizes the composition of the Company’s investment properties as of June 30, 2024 and December 31, 2023 (in thousands) : Balance as of June 30, 2024 December 31, 2023 Land, buildings and improvements $ 7,475,763 $ 7,684,066 Construction in progress 70,353 55,995 Investment properties, at cost $ 7,546,116 $ 7,740,061 |
Schedule of Rental Income | Rental income related to the Company’s operating leases is comprised of the following for the three and six months ended June 30, 2024 and 2023 (in thousands) : Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Fixed contractual lease payments – operating leases $ 161,673 $ 160,134 $ 322,213 $ 318,724 Variable lease payments – operating leases 39,663 39,876 80,133 79,630 Bad debt reserve (1,544) (233) (2,133) (1,788) Straight-line rent adjustments 2,829 2,910 6,192 6,768 Straight-line rent reserve for uncollectibility 825 504 588 190 Amortization of in-place lease liabilities, net 2,390 2,645 4,656 5,375 Rental income $ 205,836 $ 205,836 $ 411,649 $ 408,899 |
Schedule of Noncontrolling Interests | The following table summarizes the non-redeemable noncontrolling interests in consolidated properties for the six months ended June 30, 2024 and 2023 (in thousands) : Six Months Ended June 30, 2024 2023 Noncontrolling interests balance as of January 1, $ 2,430 $ 5,370 Net income allocable to noncontrolling interests, excluding redeemable noncontrolling interests 141 134 Distributions to noncontrolling interests (692) — Noncontrolling interests balance as of June 30, $ 1,879 $ 5,504 |
Schedule of Weighted Average Interests of Parent and Limited Partners | For the three and six months ended June 30, 2024 and 2023, the weighted average interests of the Parent Company and the limited partners in the Operating Partnership were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Parent Company’s weighted average interest in the Operating Partnership 98.3 % 98.6 % 98.4 % 98.7 % Limited partners’ weighted average interests in the Operating Partnership 1.7 % 1.4 % 1.6 % 1.3 % |
Schedule of Redeemable Noncontrolling Interests | The redeemable noncontrolling interests in the Operating Partnership for the six months ended June 30, 2024 and 2023 were as follows (in thousands) : Six Months Ended June 30, 2024 2023 Redeemable noncontrolling interests balance as of January 1, $ 73,287 $ 53,967 Net (loss) income allocable to redeemable noncontrolling interests (526) 459 Distributions declared to redeemable noncontrolling interests (1,809) (1,456) Other, net including adjustments to redemption value 5,141 7,957 Total limited partners’ interests in the Operating Partnership balance as of June 30, $ 76,093 $ 60,927 |
DISPOSITIONS AND IMPAIRMENT C_2
DISPOSITIONS AND IMPAIRMENT CHARGES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Property Dispositions | The Company closed on the following disposition during the six months ended June 30, 2024 (dollars in thousands) : Date Property Name MSA Property Type Square Sales Price Gain (Loss) May 31, 2024 Ashland & Roosevelt Chicago Multi-tenant retail 104,176 $ 30,600 $ (1,230) The Company closed on the following dispositions during the six months ended June 30, 2023 (dollars in thousands) : Date Property Name MSA Property Type Square Sales Price Gain (Loss) May 8, 2023 Kingwood Commons Houston Multi-tenant retail 158,172 $ 27,350 $ 4,740 June 8, 2023 Pan Am Plaza & Garage Indianapolis Land & garage — 52,025 23,700 158,172 $ 79,375 $ 28,440 The following table presents the assets and liabilities associated with City Center, the investment property classified as held for sale as of June 30, 2024 (in thousands) : June 30, 2024 Assets Net investment properties $ 67,984 Tenant and other receivables 2,522 Restricted cash and escrow deposits 225 Deferred costs, net 2,577 Prepaid and other assets 250 Assets associated with investment property held for sale $ 73,558 Liabilities Accounts payable and accrued expenses $ 637 Deferred revenue and other liabilities 3,293 Liabilities associated with investment property held for sale $ 3,930 |
DEFERRED COSTS AND INTANGIBLE_2
DEFERRED COSTS AND INTANGIBLES, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs [Abstract] | |
Schedule of Deferred Costs | As of June 30, 2024 and December 31, 2023, deferred costs consisted of the following (in thousands) : June 30, 2024 December 31, 2023 Acquired lease intangible assets $ 389,158 $ 433,771 Deferred leasing costs and other 81,943 74,662 471,101 508,433 Less: accumulated amortization (204,640) (204,262) $ 266,461 $ 304,171 Less: deferred costs associated with investment property held for sale (2,577) — Deferred costs, net $ 263,884 $ 304,171 |
Schedule of Amortization of Deferred Costs | The amounts of such amortization included in the accompanying consolidated statements of operations and comprehensive income are as follows (in thousands) : Six Months Ended June 30, 2024 2023 Amortization of deferred leasing costs, lease intangibles and other $ 40,850 $ 57,610 Amortization of above-market lease intangibles $ 5,177 $ 6,274 (in thousands) : Six Months Ended June 30, 2024 2023 Amortization of debt issuance costs $ 1,916 $ 1,782 |
DEFERRED REVENUE, INTANGIBLES_2
DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Deferred Revenue, Intangibles and Other Liabilities | As of June 30, 2024 and December 31, 2023, deferred revenue, intangibles, net and other liabilities consisted of the following (in thousands) : June 30, 2024 December 31, 2023 Unamortized in-place lease liabilities $ 149,279 $ 159,449 Retainages payable and other 8,378 9,229 Tenant rents received in advance 27,702 35,339 Lease liabilities 68,037 68,925 $ 253,396 $ 272,942 Less: deferred revenue associated with investment property held for sale (3,293) — Deferred revenue and other liabilities $ 250,103 $ 272,942 |
MORTGAGE AND OTHER INDEBTEDNE_2
MORTGAGE AND OTHER INDEBTEDNESS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedules of Indebtedness | The following table summarizes the Company’s indebtedness as of June 30, 2024 and December 31, 2023 (in thousands) : June 30, 2024 December 31, 2023 Mortgages payable $ 150,761 $ 153,306 Senior unsecured notes 2,030,000 1,829,635 Unsecured term loans 820,000 820,000 Unsecured revolving line of credit — — 3,000,761 2,802,941 Unamortized discounts and premiums, net 26,147 35,765 Unamortized debt issuance costs, net (11,282) (9,504) Total mortgage and other indebtedness, net $ 3,015,626 $ 2,829,202 The following table summarizes the Company’s mortgages payable (dollars in thousands) : June 30, 2024 December 31, 2023 Balance Weighted Average Weighted Average Years Balance Weighted Average Weighted Average Years Fixed rate mortgages payable (1) $ 134,961 5.09 % 7.6 $ 136,306 5.09 % 8.1 Variable rate mortgage payable (2) 15,800 7.54 % 2.1 17,000 7.59 % 2.6 Total mortgages payable $ 150,761 $ 153,306 (1) The fixed rate mortgages had interest rates ranging from 3.75% to 5.73% as of June 30, 2024 and December 31, 2023. (2) The interest rate on the variable rate mortgage is based on Bloomberg Short Term Bank Yield Index (“ BSBY The following table summarizes the Company’s senior unsecured notes and exchangeable senior notes (dollars in thousands) : June 30, 2024 December 31, 2023 Maturity Date Balance Interest Rate Balance Interest Rate Senior notes – 4.58% due 2024 June 30, 2024 $ — — % $ 149,635 4.58 % Senior notes – 4.00% due 2025 March 15, 2025 350,000 4.00 % 350,000 4.00 % Senior notes – SOFR (1) September 10, 2025 80,000 8.71 % 80,000 9.27 % Senior notes – 4.08% due 2026 September 30, 2026 100,000 4.08 % 100,000 4.08 % Senior notes – 4.00% due 2026 October 1, 2026 300,000 4.00 % 300,000 4.00 % Senior exchangeable notes – 0.75% due 2027 April 1, 2027 175,000 0.75 % 175,000 0.75 % Senior notes – SOFR (2) September 10, 2027 75,000 8.81 % 75,000 9.37 % Senior notes – 4.24% due 2028 December 28, 2028 100,000 4.24 % 100,000 4.24 % Senior notes – 4.82% due 2029 June 28, 2029 100,000 4.82 % 100,000 4.82 % Senior notes – 4.75% due 2030 September 15, 2030 400,000 4.75 % 400,000 4.75 % Senior notes – 5.50% due 2034 (3) March 1, 2034 350,000 4.60 % — — % Total senior unsecured notes $ 2,030,000 $ 1,829,635 (1) $80,000 of 4.47% senior unsecured notes due 2025 has been swapped to a variable rate of three-month Secured Overnight Financing Rate (“ SOFR (2) $75,000 of 4.57% senior unsecured notes due 2027 has been swapped to a variable rate of three-month SOFR (3) The coupon rate of the Notes Due 2034 (defined below) is 5.50%; however, due to hedging activities, the Company’s interest rate is 4.60%. The following table summarizes the Company’s term loans and revolving line of credit (dollars in thousands) : June 30, 2024 December 31, 2023 Maturity Date Balance Interest Rate Balance Interest Rate Unsecured term loan due 2024 – fixed rate (1) July 17, 2024 $ 120,000 2.68 % $ 120,000 2.68 % Unsecured term loan due 2025 – fixed rate (2) October 24, 2025 250,000 5.09 % 250,000 5.09 % Unsecured term loan due 2026 – fixed rate (3) July 17, 2026 150,000 2.73 % 150,000 2.73 % Unsecured term loan due 2029 – fixed rate (4) July 29, 2029 300,000 3.82 % 300,000 3.82 % Total unsecured term loans $ 820,000 $ 820,000 Unsecured credit facility revolving line of credit – variable rate (5) January 8, 2026 $ — 6.48 % $ — 6.58 % (1) $120,000 of SOFR (2) $250,000 of SOFR (3) $150,000 of SOFR (4) $300,000 of SOFR (5) The revolving line of credit has two six-month extension options that the Company can exercise, at its election, subject to (i) customary representations and warranties, including, but not limited to, the absence of an event of default as defined in the unsecured credit agreement and (ii) payment of an extension fee equal to 0.075% of the revolving line of credit capacity. |
Schedule of Weighted Average Interest Rates and Maturities | Consolidated indebtedness, including weighted average interest rates and weighted average maturities as of June 30, 2024, considering the impact of interest rate swaps, is summarized below (dollars in thousands) : Amount Ratio Weighted Average Weighted Average Years Fixed rate debt (1) $ 2,829,961 94 % 4.03 % 4.1 Variable rate debt (2) 170,800 6 % 8.65 % 2.2 Debt discounts, premiums and issuance costs, net 14,865 N/A N/A N/A Mortgage and other indebtedness, net $ 3,015,626 100 % 4.29 % 4.0 (1) Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of June 30, 2024, $820.0 million in variable rate debt is hedged to a fixed rate for a weighted average of 1.2 years. (2) Variable rate debt includes the portion of fixed rate debt that has been hedged by interest rate swaps. As of June 30, 2024, $155.0 million in fixed rate debt is hedged to a floating rate for a weighted average of 1.2 years. |
Schedule of Key Terms of Revolving Facility and Term Loans | The following table summarizes the key terms of the Revolving Facility as of June 30, 2024 (dollars in thousands) : Leverage-Based Pricing Investment Grade Pricing Credit Agreement Maturity Date Extension Option Extension Fee Credit Spread Facility Fee Credit Spread Facility Fee SOFR $1,100,000 unsecured revolving line of credit 1/8/2026 2 six 0.075% 1.05%–1.50% 0.15%–0.30% 0.725%–1.40% 0.125%–0.30% 0.10% The following table summarizes the key terms of the unsecured term loans as of June 30, 2024 (dollars in thousands) : Unsecured Term Loans Maturity Date Leverage-Based Pricing Investment Grade Pricing SOFR $120,000 unsecured term loan due 2024 (1) 7/17/2024 1.20% – 1.70% 0.80% – 1.65% 0.10% $250,000 unsecured term loan due 2025 10/24/2025 (2) 2.00% – 2.55% 2.00% – 2.50% 0.10% $150,000 unsecured term loan due 2026 7/17/2026 1.20% – 1.70% 0.75% – 1.60% 0.10% $300,000 unsecured term loan due 2029 7/29/2029 N/A 1.15% – 2.20% 0.10% (1) Subsequent to June 30, 2024, the $120M Term Loan was repaid with a portion of the proceeds from the Notes Due 2034. (2) The maturity date may be extended for up to three additional periods of one year each at the Operating Partnership’s option, subject to certain conditions. |
Schedule of Amortization of Debt Issuance Costs | The amounts of such amortization included in the accompanying consolidated statements of operations and comprehensive income are as follows (in thousands) : Six Months Ended June 30, 2024 2023 Amortization of deferred leasing costs, lease intangibles and other $ 40,850 $ 57,610 Amortization of above-market lease intangibles $ 5,177 $ 6,274 (in thousands) : Six Months Ended June 30, 2024 2023 Amortization of debt issuance costs $ 1,916 $ 1,782 |
Schedule of Debt Discounts, Premiums and Hedge Instruments Amortization | The following amounts of amortization are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income (in thousands) : Six Months Ended June 30, 2024 2023 Amortization of debt discounts, premiums and hedge instruments $ 7,490 $ 9,998 |
Schedule of Debt Discounts, Premiums and Hedge Instruments Amortization Maturity | In addition, the estimated amounts of the reduction to interest expense as of June 30, 2024 for each of the next five years and thereafter related to the amortization of debt discounts, premiums and assumed hedge instruments, assuming these instruments are held to maturity, are as follows (in thousands) : July 2024 through December 2024 $ 6,222 2025 7,807 2026 6,152 2027 5,235 2028 5,225 Thereafter 5,411 Total unamortized debt discounts, premiums and hedge instruments $ 36,052 |
Schedule of Reconciliation of Unamortized Debt Discounts, Premiums and Hedge Instruments | The following table reconciles total unamortized debt discounts, premiums and hedge instruments as of June 30, 2024 to the balance of unamortized discounts and premiums, net (in thousands) : Unamortized discounts and premiums on mortgages payable, senior unsecured notes and unsecured term loans $ 34,055 Unamortized hedge instruments 1,997 Total unamortized debt discounts, premiums and hedge instruments 36,052 Unamortized hedge instruments (included in accumulated other comprehensive income) (1,997) Fair value of variable interest rate swaps (7,908) Unamortized discounts and premiums, net $ 26,147 |
DERIVATIVE INSTRUMENTS, HEDGI_2
DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Terms and Fair Values of Derivative Financial Instruments | The following table summarizes the terms and fair values of the Company’s derivative financial instruments that were designated and qualified as part of a hedging relationship as of June 30, 2024 and December 31, 2023 (dollars in thousands) : Fair Value Assets (Liabilities) (1) Type of Hedge Number of Instruments Aggregate Notional Reference Rate Interest Rate Effective Date Maturity Date June 30, 2024 December 31, 2023 Cash Flow Four $ 250,000 SOFR 2.99 % 12/1/2022 10/24/2025 $ 5,700 $ 4,952 Cash Flow Two 100,000 SOFR 2.66 % 8/1/2022 8/1/2025 2,350 2,415 Cash Flow Two 200,000 SOFR 2.37 % 11/22/2023 8/1/2025 5,314 5,716 Cash Flow Three 120,000 SOFR 1.58 % 8/15/2022 7/17/2024 199 2,236 Cash Flow Three 150,000 SOFR 1.68 % 8/15/2022 7/17/2026 8,231 7,744 $ 820,000 $ 21,794 $ 23,063 Fair Value (2) Two $ 155,000 SOFR SOFR 4/23/2021 9/10/2025 $ (7,908) $ (9,408) Forward-Starting Cash Flow (3) Three $ 150,000 SOFR 3.44 % 6/28/2024 6/28/2034 $ — $ (700) (1) Derivatives in an asset position are included within “Prepaid and other assets” and derivatives in a liability position are included within “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets. (2) The derivative agreements swap a blended fixed rate of 4.52% for a blended floating rate of three-month SOFR (3) The forward-starting interest rate swaps were terminated in conjunction with the issuance of the Notes Due 2034. |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 | |
General Partner Units | |
Organization [Line Items] | |
General partner, ownership interest (as a percent) | 98.30% |
Kite Realty Group, L.P. | |
Organization [Line Items] | |
Limited partners, ownership interest (as a percent) | 1.70% |
ORGANIZATION AND BASIS OF PRE_4
ORGANIZATION AND BASIS OF PRESENTATION - Schedule of Real Estate Properties (Details) | Jun. 30, 2024 ft² property |
Operating Retail Properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 178 |
Square footage | ft² | 27,607,987 |
Operating Retail Properties | Consolidated Entities | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 175 |
Operating Retail Properties | Equity Method Investee | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 3 |
Operating Retail Properties | Held-for-Sale | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
Office Properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
Square footage | ft² | 287,291 |
Development and Redevelopment Projects | The Corner – IN | |
Real Estate Properties [Line Items] | |
Ownership percentage in equity method investment (as a percent) | 50% |
Development and Redevelopment Projects | Carillon medical office building | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
Square footage | ft² | 126,000 |
Development and Redevelopment Projects | The Corner – IN | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
Square footage | ft² | 24,000 |
Development and Redevelopment Projects | Hamilton Crossing Centre | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
Square footage | ft² | 92,283 |
Development and Redevelopment Projects | Edwards Multiplex – Ontario | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
Square footage | ft² | 124,614 |
Operating Retail Properties with Office Components | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 10 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Investment Properties (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Land, buildings and improvements | $ 7,475,763 | $ 7,684,066 |
Construction in progress | 70,353 | 55,995 |
Investment properties, at cost | $ 7,546,116 | $ 7,740,061 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Fixed contractual lease payments – operating leases | $ 161,673 | $ 160,134 | $ 322,213 | $ 318,724 |
Variable lease payments – operating leases | 39,663 | 39,876 | 80,133 | 79,630 |
Bad debt reserve | (1,544) | (233) | (2,133) | (1,788) |
Straight-line rent adjustments | 2,829 | 2,910 | 6,192 | 6,768 |
Straight-line rent reserve for uncollectibility | 825 | 504 | 588 | 190 |
Amortization of in-place lease liabilities, net | 2,390 | 2,645 | 4,656 | 5,375 |
Rental income | $ 205,836 | $ 205,836 | $ 411,649 | $ 408,899 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2024 USD ($) unit | Jan. 31, 2024 USD ($) unit | Jun. 30, 2024 USD ($) jointVenture shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) jointVenture shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) shares | |
Noncontrolling Interest [Line Items] | |||||||
Investment in short-term deposits | $ 265,000 | $ 265,000 | $ 0 | ||||
Short-term deposits | $ 120,000 | $ 120,000 | $ 0 | ||||
Short-term deposits, interest rate (as a percent) | 5.34% | 5.34% | |||||
Interest income | $ 6,200 | ||||||
Variable interest entity, number of entities | jointVenture | 2 | 2 | |||||
Assets of VIEs | $ 6,958,920 | $ 6,958,920 | $ 6,944,078 | ||||
Number of investments in unconsolidated joint ventures | jointVenture | 4 | 4 | |||||
Gain on sale | $ (1,466) | 28,440 | |||||
Gain on sale of unconsolidated property | $ 0 | $ 0 | 2,325 | 0 | |||
Distribution from unconsolidated joint venture | $ 1,618 | $ 0 | |||||
Limited partners' capital account, units outstanding (in shares) | shares | 3,707,004 | 3,707,004 | 3,512,868 | ||||
Glendale Center Apartments | |||||||
Noncontrolling Interest [Line Items] | |||||||
Ownership percentage in equity method investment (as a percent) | 11.50% | 11.50% | |||||
Gain on sale | $ 20,200 | ||||||
Gain on sale of unconsolidated property | $ 2,300 | ||||||
Distribution from unconsolidated joint venture | $ 1,600 | ||||||
Glendale Center Apartments | Multifamily | |||||||
Noncontrolling Interest [Line Items] | |||||||
Number of multifamily rental units | unit | 267 | 267 | |||||
One Loudoun Downtown - Pads G & H | |||||||
Noncontrolling Interest [Line Items] | |||||||
Noncontrolling interest, ownership percentage by parent (as a percent) | 90% | 90% | |||||
Operating Partnership | |||||||
Noncontrolling Interest [Line Items] | |||||||
Noncontrolling interest, ownership percentage by parent (as a percent) | 98.30% | 98.30% | 98.40% | ||||
Noncontrolling interest, ownership percentage by limited partners (as a percent) | 1.70% | 1.70% | 1.60% | ||||
Variable Interest Entities | |||||||
Noncontrolling Interest [Line Items] | |||||||
Mortgage debt of VIEs | $ 110,900 | $ 110,900 | |||||
Assets of VIEs | $ 217,300 | $ 217,300 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Noncontrolling Interests (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Noncontrolling interests balance as of January 1, | $ 2,430 | $ 5,370 |
Net income allocable to noncontrolling interests, excluding redeemable noncontrolling interests | 141 | 134 |
Distributions to noncontrolling interests | (692) | 0 |
Noncontrolling interests balance as of June 30, | $ 1,879 | $ 5,504 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Weighted Average Interests of Parent and Limited Partners (Details) - Operating Partnership | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Parent Company’s weighted average interest in the Operating Partnership | 98.30% | 98.60% | 98.40% | 98.70% |
Limited partners’ weighted average interests in the Operating Partnership | 1.70% | 1.40% | 1.60% | 1.30% |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward] | ||||
Net (loss) income allocable to redeemable noncontrolling interests | $ (665) | $ 423 | $ (385) | $ 593 |
Distributions declared to redeemable noncontrolling interests | (692) | 0 | ||
Redeemable Noncontrolling Interests | ||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward] | ||||
Redeemable noncontrolling interests balance as of January 1, | 73,287 | 53,967 | ||
Net (loss) income allocable to redeemable noncontrolling interests | (526) | 459 | ||
Distributions declared to redeemable noncontrolling interests | (1,809) | (1,456) | ||
Other, net including adjustments to redemption value | 5,141 | 7,957 | ||
Total limited partners’ interests in the Operating Partnership balance as of June 30, | $ 76,093 | $ 60,927 | $ 76,093 | $ 60,927 |
DISPOSITIONS AND IMPAIRMENT C_3
DISPOSITIONS AND IMPAIRMENT CHARGES - Schedule of Property Dispositions (Details) - Disposed of by Sale $ in Thousands | 6 Months Ended | |||
May 31, 2024 USD ($) ft² | Jun. 08, 2023 USD ($) ft² | May 08, 2023 USD ($) ft² | Jun. 30, 2023 USD ($) ft² | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Square footage | ft² | 158,172 | |||
Sales price | $ 79,375 | |||
Gain (loss) | $ 28,440 | |||
Ashland & Roosevelt | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Square footage | ft² | 104,176 | |||
Sales price | $ 30,600 | |||
Gain (loss) | $ (1,230) | |||
Kingwood Commons | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Square footage | ft² | 158,172 | |||
Sales price | $ 27,350 | |||
Gain (loss) | $ 4,740 | |||
Pan Am Plaza & Garage | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Square footage | ft² | 0 | |||
Sales price | $ 52,025 | |||
Gain (loss) | $ 23,700 |
DISPOSITIONS AND IMPAIRMENT C_4
DISPOSITIONS AND IMPAIRMENT CHARGES - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) ft² | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) ft² | Jun. 30, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment charges | $ 66,201 | $ 0 | $ 66,201 | $ 0 |
Held-for-sale | City Center | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Square footage | ft² | 362,278 | 362,278 | ||
Impairment charges | $ 66,200 | |||
Long-lived assets, carrying value | 135,100 | $ 135,100 | ||
Long-lived assets, fair value | 69,600 | 69,600 | ||
Selling costs | $ 700 | $ 700 | ||
Held-for-sale | City Center | Measurement Input, Capitalization Rate | Valuation, Income Approach | Fair Value, Inputs, Level 3 | Minimum | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Measurement input | 0.060 | 0.060 | ||
Held-for-sale | City Center | Measurement Input, Capitalization Rate | Valuation, Income Approach | Fair Value, Inputs, Level 3 | Maximum | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Measurement input | 0.150 | 0.150 |
DISPOSITIONS AND IMPAIRMENT C_5
DISPOSITIONS AND IMPAIRMENT CHARGES - Schedule of Assets and Liabilities Associated with Investment Property Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Assets associated with investment property held for sale | $ 73,558 | $ 0 |
Liabilities | ||
Liabilities associated with investment property held for sale | 3,930 | $ 0 |
Held-for-sale | City Center | ||
Assets | ||
Net investment properties | 67,984 | |
Tenant and other receivables | 2,522 | |
Restricted cash and escrow deposits | 225 | |
Deferred costs, net | 2,577 | |
Prepaid and other assets | 250 | |
Assets associated with investment property held for sale | 73,558 | |
Liabilities | ||
Accounts payable and accrued expenses | 637 | |
Deferred revenue and other liabilities | 3,293 | |
Liabilities associated with investment property held for sale | $ 3,930 |
DEFERRED COSTS AND INTANGIBLE_3
DEFERRED COSTS AND INTANGIBLES, NET - Schedule of Deferred Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred Costs [Abstract] | ||
Acquired lease intangible assets | $ 389,158 | $ 433,771 |
Deferred leasing costs and other | 81,943 | 74,662 |
Deferred costs and intangibles, gross | 471,101 | 508,433 |
Less: accumulated amortization | (204,640) | (204,262) |
Total deferred costs and intangibles | 266,461 | 304,171 |
Less: deferred costs associated with investment property held for sale | (2,577) | 0 |
Deferred costs, net | $ 263,884 | $ 304,171 |
DEFERRED COSTS AND INTANGIBLE_4
DEFERRED COSTS AND INTANGIBLES, NET - Schedule of Amortization of Deferred Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Deferred Costs [Abstract] | ||
Amortization of deferred leasing costs, lease intangibles and other | $ 40,850 | $ 57,610 |
Amortization of above-market lease intangibles | $ 5,177 | $ 6,274 |
DEFERRED REVENUE, INTANGIBLES_3
DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |||
Unamortized in-place lease liabilities | $ 149,279 | $ 159,449 | |
Retainages payable and other | 8,378 | 9,229 | |
Tenant rents received in advance | 27,702 | 35,339 | |
Lease liabilities | $ 68,037 | $ 68,925 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Deferred revenue and other liabilities | Deferred revenue and other liabilities | |
Total deferred revenue and other liabilities, gross | $ 253,396 | $ 272,942 | |
Less: deferred revenue associated with investment property held for sale | (3,293) | 0 | |
Deferred revenue and other liabilities | 250,103 | $ 272,942 | |
Amortization of below-market lease intangibles | $ 9,800 | $ 11,600 |
MORTGAGE AND OTHER INDEBTEDNE_3
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Indebtedness (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Gross debt | $ 3,000,761 | $ 2,802,941 |
Unamortized discounts and premiums, net | 26,147 | 35,765 |
Unamortized debt issuance costs, net | (11,282) | (9,504) |
Total mortgage and other indebtedness, net | 3,015,626 | 2,829,202 |
Unsecured revolving line of credit | ||
Debt Instrument [Line Items] | ||
Gross debt | 0 | 0 |
Mortgages Payable | ||
Debt Instrument [Line Items] | ||
Gross debt | 150,761 | 153,306 |
Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Gross debt | 2,030,000 | 1,829,635 |
Unsecured Term Loans | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 820,000 | $ 820,000 |
MORTGAGE AND OTHER INDEBTEDNE_4
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Weighted Average Interest Rates and Maturities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Gross debt | $ 3,000,761 | $ 2,802,941 |
Debt discounts, premiums and issuance costs, net | 14,865 | |
Total mortgage and other indebtedness, net | $ 3,015,626 | $ 2,829,202 |
Ratio (as a percent) | 100% | |
Weighted average interest rate (as a percent) | 4.29% | |
Weighted average years to maturity (in years) | 4 years | |
Fixed Rate Debt Considering Hedges | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 2,829,961 | |
Ratio (as a percent) | 94% | |
Weighted average interest rate (as a percent) | 4.03% | |
Weighted average years to maturity (in years) | 4 years 1 month 6 days | |
Fixed Rate Debt Considering Hedges | Variable Rate Debt | ||
Debt Instrument [Line Items] | ||
Total mortgage and other indebtedness, net | $ 820,000 | |
Weighted average years to maturity (in years) | 1 year 2 months 12 days | |
Variable Rate Debt Considering Hedges | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 170,800 | |
Ratio (as a percent) | 6% | |
Weighted average interest rate (as a percent) | 8.65% | |
Weighted average years to maturity (in years) | 2 years 2 months 12 days | |
Variable Rate Debt Considering Hedges | Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Total mortgage and other indebtedness, net | $ 155,000 | |
Weighted average years to maturity (in years) | 1 year 2 months 12 days |
MORTGAGE AND OTHER INDEBTEDNE_5
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Mortgages Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Gross debt | $ 3,000,761 | $ 2,802,941 |
Weighted average interest rate (as a percent) | 4.29% | |
Weighted average years to maturity (in years) | 4 years | |
Variable Rate Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate (as a percent) | 6.49% | |
Variable Rate Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate (as a percent) | 6.54% | |
Mortgages Payable | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 150,761 | 153,306 |
Mortgages Payable | Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 134,961 | $ 136,306 |
Weighted average interest rate (as a percent) | 5.09% | 5.09% |
Weighted average years to maturity (in years) | 7 years 7 months 6 days | 8 years 1 month 6 days |
Mortgages Payable | Fixed Rate Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 3.75% | 3.75% |
Mortgages Payable | Fixed Rate Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.73% | 5.73% |
Mortgages Payable | Variable Rate Debt | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 15,800 | $ 17,000 |
Weighted average interest rate (as a percent) | 7.54% | 7.59% |
Weighted average years to maturity (in years) | 2 years 1 month 6 days | 2 years 7 months 6 days |
Variable interest rate, type [Extensible enumeration] | Bloomberg Short Term Bank Yield Index [Member] | Bloomberg Short Term Bank Yield Index [Member] |
Credit spread (as a percent) | 2.15% | |
Variable interest rate (as a percent) | 5.39% | 5.44% |
MORTGAGE AND OTHER INDEBTEDNE_6
MORTGAGE AND OTHER INDEBTEDNESS - Additional Information (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2024 USD ($) | Jul. 31, 2022 USD ($) extension | Jun. 30, 2024 USD ($) extension | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||
Repayment of long-term debt | $ 192,180,000 | $ 361,162,000 | |||
Gross debt | 3,000,761,000 | $ 2,802,941,000 | |||
Percentage bearing fixed interest, amount | 2,200,000,000 | ||||
Percentage bearing variable interest, amount | $ 835,800,000 | ||||
Unsecured Revolving Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 6.48% | 6.58% | |||
Gross debt | $ 0 | $ 0 | |||
Number of extension options | extension | 2 | ||||
Extension period | 6 months | ||||
Reduction of interest rate margin upon achievement of sustainability metric | 0.0001 | ||||
Kite Realty Group, L.P. | |||||
Debt Instrument [Line Items] | |||||
Repayment of long-term debt | $ 192,180,000 | $ 361,162,000 | |||
Kite Realty Group, L.P. | Unsecured Revolving Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit, aggregate borrowing capacity | $ 1,100,000,000 | $ 1,100,000,000 | |||
Line of credit, accordion feature, increase limit | 600,000,000 | ||||
Line of credit, accordion feature, maximum borrowing capacity | $ 2,000,000,000 | ||||
Number of extension options | extension | 2 | 2 | |||
Extension period | 6 months | 6 months | |||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||
Credit spread, increase (as a percent) | 0.10% | 0.10% | |||
Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, fair value | $ 2,100,000,000 | ||||
Fixed Rate Debt | Minimum | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate (as a percent) | 5.82% | ||||
Fixed Rate Debt | Maximum | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate (as a percent) | 7.02% | ||||
Variable Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, fair value | $ 841,800,000 | ||||
Variable Rate Debt | Minimum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate (as a percent) | 6.49% | ||||
Variable Rate Debt | Maximum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate (as a percent) | 6.54% | ||||
Mortgages Payable | |||||
Debt Instrument [Line Items] | |||||
Scheduled principal payments | $ 2,600,000 | ||||
Gross debt | 150,761,000 | 153,306,000 | |||
Mortgages Payable | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Gross debt | $ 134,961,000 | $ 136,306,000 | |||
Mortgages Payable | Fixed Rate Debt | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 3.75% | 3.75% | |||
Mortgages Payable | Fixed Rate Debt | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 5.73% | 5.73% | |||
Mortgages Payable | Variable Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Gross debt | $ 15,800,000 | $ 17,000,000 | |||
Variable interest rate, type [Extensible enumeration] | Bloomberg Short Term Bank Yield Index [Member] | Bloomberg Short Term Bank Yield Index [Member] | |||
Variable interest rate (as a percent) | 5.39% | 5.44% | |||
Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Gross debt | $ 2,030,000,000 | $ 1,829,635,000 | |||
Senior Unsecured Notes | Senior Notes - 5.50% Due 2034 | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 350,000,000 | ||||
Interest rate (as a percent) | 5.50% | ||||
Interest rate, percentage of principal amount (as a percent) | 0.98670 | ||||
Effective interest rate (as a percent) | 5.673% | ||||
Gross debt | $ 350,000,000 | $ 0 | |||
Senior Unsecured Notes | Senior Notes - 4.58% Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.58% | 4.58% | |||
Repayment of long-term debt | $ 149,600,000 | ||||
Gross debt | $ 149,635,000 | ||||
Unsecured Term Loans | |||||
Debt Instrument [Line Items] | |||||
Gross debt | $ 820,000,000 | $ 820,000,000 | |||
Unsecured Term Loans | $120M Unsecured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 2.68% | 2.68% | |||
Gross debt | $ 120,000,000 | $ 120,000,000 | |||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||
Fixed interest rate (as a percent) | 1.58% | ||||
Variable interest rate (as a percent) | 1.10% | 1.10% | |||
Unsecured Term Loans | $120M Unsecured Term Loan | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Repayment of long-term debt | $ 120,000,000 | ||||
Unsecured Term Loans | $120M Unsecured Term Loan | Kite Realty Group, L.P. | |||||
Debt Instrument [Line Items] | |||||
Gross debt | $ 120,000,000 | ||||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | ||||
Credit spread, increase (as a percent) | 0.10% | ||||
Maximum borrowing capacity | $ 250,000,000 | ||||
Unsecured Term Loans | $300M Unsecured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 3.82% | 3.82% | |||
Gross debt | $ 300,000,000 | $ 300,000,000 | |||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||
Fixed interest rate (as a percent) | 2.47% | ||||
Variable interest rate (as a percent) | 1.35% | 1.35% | |||
Unsecured Term Loans | $300M Unsecured Term Loan | Kite Realty Group, L.P. | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 300,000,000 | ||||
Gross debt | $ 300,000,000 | ||||
Debt instrument term (in years) | 7 years | ||||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | ||||
Credit spread, increase (as a percent) | 0.10% | ||||
Reduction of interest rate margin upon achievement of sustainability metric | 0.0001 | ||||
Unsecured Term Loans | $250M Unsecured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 5.09% | 5.09% | |||
Gross debt | $ 250,000,000 | $ 250,000,000 | |||
Number of extension options | extension | 3 | ||||
Extension period | 1 year | ||||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | ||||
Fixed interest rate (as a percent) | 5.09% | ||||
Unsecured Term Loans | $250M Unsecured Term Loan | Kite Realty Group, L.P. | |||||
Debt Instrument [Line Items] | |||||
Gross debt | $ 250,000,000 | ||||
Number of extension options | extension | 3 | ||||
Extension period | 1 year | ||||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | ||||
Credit spread, increase (as a percent) | 0.10% | ||||
Maximum borrowing capacity | $ 300,000,000 | ||||
Unsecured Term Loans | $150M Unsecured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 2.73% | 2.73% | |||
Gross debt | $ 150,000,000 | $ 150,000,000 | |||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||
Fixed interest rate (as a percent) | 1.68% | ||||
Variable interest rate (as a percent) | 1.05% | 1.05% | |||
Unsecured Term Loans | $150M Unsecured Term Loan | Kite Realty Group, L.P. | |||||
Debt Instrument [Line Items] | |||||
Gross debt | $ 150,000,000 | ||||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | ||||
Credit spread, increase (as a percent) | 0.10% | ||||
Reduction of interest rate margin upon achievement of sustainability metric | 0.0001 | ||||
Maximum borrowing capacity | $ 250,000,000 |
MORTGAGE AND OTHER INDEBTEDNE_7
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Unsecured Notes (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Gross debt | $ 3,000,761 | $ 2,802,941 |
Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 2,030,000 | 1,829,635 |
Senior Unsecured Notes | Senior Notes - 4.58% Due 2024 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 149,635 | |
Interest rate (as a percent) | 4.58% | 4.58% |
Senior Unsecured Notes | Senior Notes - 4.00% Due 2025 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 350,000 | $ 350,000 |
Interest rate (as a percent) | 4% | 4% |
Senior Unsecured Notes | Senior Notes - SOFR + 3.65% Due 2025 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 80,000 | $ 80,000 |
Interest rate (as a percent) | 8.71% | 9.27% |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Credit spread (as a percent) | 3.65% | |
Senior Unsecured Notes | Senior Notes - 4.47% Due 2025 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 80,000 | |
Interest rate (as a percent) | 4.47% | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Credit spread (as a percent) | 3.65% | |
Senior Unsecured Notes | Senior Notes - 4.08% Due 2026 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 100,000 | $ 100,000 |
Interest rate (as a percent) | 4.08% | 4.08% |
Senior Unsecured Notes | Senior Notes - 4.00% Due 2026 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 300,000 | $ 300,000 |
Interest rate (as a percent) | 4% | 4% |
Senior Unsecured Notes | Senior Notes - SOFR + 3.75% Due 2027 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 75,000 | $ 75,000 |
Interest rate (as a percent) | 8.81% | 9.37% |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Credit spread (as a percent) | 3.75% | |
Senior Unsecured Notes | Senior Notes - 4.57% Due 2027 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 75,000 | |
Interest rate (as a percent) | 4.57% | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Credit spread (as a percent) | 3.75% | |
Senior Unsecured Notes | Senior Notes - 4.24% Due 2028 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 100,000 | $ 100,000 |
Interest rate (as a percent) | 4.24% | 4.24% |
Senior Unsecured Notes | Senior Notes - 4.82% Due 2029 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 100,000 | $ 100,000 |
Interest rate (as a percent) | 4.82% | 4.82% |
Senior Unsecured Notes | Senior Notes - 4.75% Due 2030 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 400,000 | $ 400,000 |
Interest rate (as a percent) | 4.75% | 4.75% |
Senior Unsecured Notes | Senior Notes - 5.50% Due 2034 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 350,000 | $ 0 |
Interest rate (as a percent) | 5.50% | |
Senior Unsecured Notes | Senior Notes - 5.50% Due 2034 | Designated as Hedging Instrument | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.60% | 0% |
Senior Exchangeable Notes | Senior Exchangeable Notes - 0.75% Due 2027 | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 175,000 | $ 175,000 |
Interest rate (as a percent) | 0.75% | 0.75% |
MORTGAGE AND OTHER INDEBTEDNE_8
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Term Loans and Revolving Line of Credit (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jul. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) extension | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||
Gross debt | $ 3,000,761,000 | $ 2,802,941,000 | ||
Repayment of long-term debt | 192,180,000 | $ 361,162,000 | ||
Unsecured Credit Facility Revolving Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Gross debt | $ 0 | $ 0 | ||
Interest rate (as a percent) | 6.48% | 6.58% | ||
Number of extension options | extension | 2 | |||
Extension period | 6 months | |||
Extension fee percentage (as a percent) | 0.00075 | |||
Unsecured Term Loans | ||||
Debt Instrument [Line Items] | ||||
Gross debt | $ 820,000,000 | $ 820,000,000 | ||
Unsecured Term Loan Due 2024 | Unsecured Term Loans | ||||
Debt Instrument [Line Items] | ||||
Gross debt | $ 120,000,000 | $ 120,000,000 | ||
Interest rate (as a percent) | 2.68% | 2.68% | ||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] | ||
Fixed interest rate (as a percent) | 1.58% | |||
Variable interest rate (as a percent) | 1.10% | 1.10% | ||
Unsecured Term Loan Due 2024 | Unsecured Term Loans | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Repayment of long-term debt | $ 120,000,000 | |||
Unsecured Term Loan Due 2024 | Unsecured Term Loans | Minimum | ||||
Debt Instrument [Line Items] | ||||
Credit spread (as a percent) | 0.80% | |||
Unsecured Term Loan Due 2024 | Unsecured Term Loans | Maximum | ||||
Debt Instrument [Line Items] | ||||
Credit spread (as a percent) | 1.65% | |||
Unsecured Term Loan Due 2025 | Unsecured Term Loans | ||||
Debt Instrument [Line Items] | ||||
Gross debt | $ 250,000,000 | $ 250,000,000 | ||
Interest rate (as a percent) | 5.09% | 5.09% | ||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |||
Fixed interest rate (as a percent) | 5.09% | |||
Number of extension options | extension | 3 | |||
Extension period | 1 year | |||
Unsecured Term Loan Due 2026 | Unsecured Term Loans | ||||
Debt Instrument [Line Items] | ||||
Gross debt | $ 150,000,000 | $ 150,000,000 | ||
Interest rate (as a percent) | 2.73% | 2.73% | ||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] | ||
Fixed interest rate (as a percent) | 1.68% | |||
Variable interest rate (as a percent) | 1.05% | 1.05% | ||
Unsecured Term Loan Due 2026 | Unsecured Term Loans | Minimum | ||||
Debt Instrument [Line Items] | ||||
Credit spread (as a percent) | 0.75% | |||
Unsecured Term Loan Due 2026 | Unsecured Term Loans | Maximum | ||||
Debt Instrument [Line Items] | ||||
Credit spread (as a percent) | 1.60% | |||
Unsecured Term Loan Due 2029 | Unsecured Term Loans | ||||
Debt Instrument [Line Items] | ||||
Gross debt | $ 300,000,000 | $ 300,000,000 | ||
Interest rate (as a percent) | 3.82% | 3.82% | ||
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] | ||
Fixed interest rate (as a percent) | 2.47% | |||
Variable interest rate (as a percent) | 1.35% | 1.35% | ||
Unsecured Term Loan Due 2029 | Unsecured Term Loans | Minimum | ||||
Debt Instrument [Line Items] | ||||
Credit spread (as a percent) | 1.15% | |||
Unsecured Term Loan Due 2029 | Unsecured Term Loans | Maximum | ||||
Debt Instrument [Line Items] | ||||
Credit spread (as a percent) | 2.20% |
MORTGAGE AND OTHER INDEBTEDNE_9
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Revolving Facility (Details) - Unsecured Revolving Line of Credit | 1 Months Ended | 6 Months Ended |
Jul. 31, 2022 USD ($) extension | Jun. 30, 2024 USD ($) extension | |
Line of Credit Facility [Line Items] | ||
Number of extension options | 2 | |
Extension period | 6 months | |
Extension fee percentage (as a percent) | 0.00075 | |
Kite Realty Group, L.P. | ||
Line of Credit Facility [Line Items] | ||
Line of credit, aggregate borrowing capacity | $ | $ 1,100,000,000 | $ 1,100,000,000 |
Number of extension options | 2 | 2 |
Extension period | 6 months | 6 months |
Extension fee percentage (as a percent) | 0.00075 | |
Basis spread on variable rate (as a percent) | 0.10% | 0.10% |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] |
Kite Realty Group, L.P. | Minimum | Leverage-Based Pricing | ||
Line of Credit Facility [Line Items] | ||
Credit spread (as a percent) | 1.05% | |
Facility fee (as a percent) | 0.15% | |
Kite Realty Group, L.P. | Minimum | Investment Grade Pricing | ||
Line of Credit Facility [Line Items] | ||
Credit spread (as a percent) | 0.725% | |
Facility fee (as a percent) | 0.125% | |
Kite Realty Group, L.P. | Maximum | Leverage-Based Pricing | ||
Line of Credit Facility [Line Items] | ||
Credit spread (as a percent) | 1.50% | |
Facility fee (as a percent) | 0.30% | |
Kite Realty Group, L.P. | Maximum | Investment Grade Pricing | ||
Line of Credit Facility [Line Items] | ||
Credit spread (as a percent) | 1.40% | |
Facility fee (as a percent) | 0.30% |
MORTGAGE AND OTHER INDEBTEDN_10
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Unsecured Term Loans (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 USD ($) extension | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||
Gross debt | $ 3,000,761,000 | $ 2,802,941,000 |
Unsecured Term Loans | ||
Debt Instrument [Line Items] | ||
Gross debt | 820,000,000 | 820,000,000 |
Unsecured Term Loans | $120M Unsecured Term Loan | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 120,000,000 | $ 120,000,000 |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] |
Unsecured Term Loans | $120M Unsecured Term Loan | Minimum | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 0.80% | |
Unsecured Term Loans | $120M Unsecured Term Loan | Maximum | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 1.65% | |
Unsecured Term Loans | $120M Unsecured Term Loan | Kite Realty Group, L.P. | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 120,000,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Credit spread, increase (as a percent) | 0.10% | |
Unsecured Term Loans | $120M Unsecured Term Loan | Kite Realty Group, L.P. | Minimum | Leverage-Based Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 1.20% | |
Unsecured Term Loans | $120M Unsecured Term Loan | Kite Realty Group, L.P. | Minimum | Investment Grade Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 0.80% | |
Unsecured Term Loans | $120M Unsecured Term Loan | Kite Realty Group, L.P. | Maximum | Leverage-Based Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 1.70% | |
Unsecured Term Loans | $120M Unsecured Term Loan | Kite Realty Group, L.P. | Maximum | Investment Grade Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 1.65% | |
Unsecured Term Loans | $250M Unsecured Term Loan | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 250,000,000 | $ 250,000,000 |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Number of extension options | extension | 3 | |
Extension period | 1 year | |
Unsecured Term Loans | $250M Unsecured Term Loan | Kite Realty Group, L.P. | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 250,000,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Credit spread, increase (as a percent) | 0.10% | |
Number of extension options | extension | 3 | |
Extension period | 1 year | |
Unsecured Term Loans | $250M Unsecured Term Loan | Kite Realty Group, L.P. | Minimum | Leverage-Based Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 2% | |
Unsecured Term Loans | $250M Unsecured Term Loan | Kite Realty Group, L.P. | Minimum | Investment Grade Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 2% | |
Unsecured Term Loans | $250M Unsecured Term Loan | Kite Realty Group, L.P. | Maximum | Leverage-Based Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 2.55% | |
Unsecured Term Loans | $250M Unsecured Term Loan | Kite Realty Group, L.P. | Maximum | Investment Grade Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 2.50% | |
Unsecured Term Loans | $150M Unsecured Term Loan | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 150,000,000 | $ 150,000,000 |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] |
Unsecured Term Loans | $150M Unsecured Term Loan | Minimum | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 0.75% | |
Unsecured Term Loans | $150M Unsecured Term Loan | Maximum | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 1.60% | |
Unsecured Term Loans | $150M Unsecured Term Loan | Kite Realty Group, L.P. | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 150,000,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Credit spread, increase (as a percent) | 0.10% | |
Unsecured Term Loans | $150M Unsecured Term Loan | Kite Realty Group, L.P. | Minimum | Leverage-Based Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 1.20% | |
Unsecured Term Loans | $150M Unsecured Term Loan | Kite Realty Group, L.P. | Minimum | Investment Grade Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 0.75% | |
Unsecured Term Loans | $150M Unsecured Term Loan | Kite Realty Group, L.P. | Maximum | Leverage-Based Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 1.70% | |
Unsecured Term Loans | $150M Unsecured Term Loan | Kite Realty Group, L.P. | Maximum | Investment Grade Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 1.60% | |
Unsecured Term Loans | $300M Unsecured Term Loan | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 300,000,000 | $ 300,000,000 |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | Secured Overnight Financing Rate (SOFR) [Member] |
Unsecured Term Loans | $300M Unsecured Term Loan | Minimum | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 1.15% | |
Unsecured Term Loans | $300M Unsecured Term Loan | Maximum | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 2.20% | |
Unsecured Term Loans | $300M Unsecured Term Loan | Kite Realty Group, L.P. | ||
Debt Instrument [Line Items] | ||
Gross debt | $ 300,000,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Credit spread, increase (as a percent) | 0.10% | |
Unsecured Term Loans | $300M Unsecured Term Loan | Kite Realty Group, L.P. | Minimum | Investment Grade Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 1.15% | |
Unsecured Term Loans | $300M Unsecured Term Loan | Kite Realty Group, L.P. | Maximum | Investment Grade Pricing | ||
Debt Instrument [Line Items] | ||
Credit spread (as a percent) | 2.20% |
MORTGAGE AND OTHER INDEBTEDN_11
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Debt Issuance Costs Amortization (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Disclosure [Abstract] | ||
Amortization of debt issuance costs | $ 1,916 | $ 1,782 |
MORTGAGE AND OTHER INDEBTEDN_12
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Amortization of Debt Discounts and Premiums (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Disclosure [Abstract] | ||
Amortization of debt discounts, premiums and hedge instruments | $ 7,490 | $ 9,998 |
MORTGAGE AND OTHER INDEBTEDN_13
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Maturities for Debt Discounts, Premiums and Hedge Instruments Amortization (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
July 2024 through December 2024 | $ 6,222 |
2025 | 7,807 |
2026 | 6,152 |
2027 | 5,235 |
2028 | 5,225 |
Thereafter | 5,411 |
Total unamortized debt discounts, premiums and hedge instruments | $ 36,052 |
MORTGAGE AND OTHER INDEBTEDN_14
MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Reconciliation for Debt Discounts, Premiums and Hedge Instruments Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Unamortized discounts and premiums on mortgages payable, senior unsecured notes and unsecured term loans | $ 34,055 | |
Unamortized hedge instruments | 1,997 | |
Total unamortized debt discounts, premiums and hedge instruments | 36,052 | |
Unamortized hedge instruments (included in accumulated other comprehensive income) | (1,997) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unamortized discounts and premiums, net | 26,147 | $ 35,765 |
$155M Interest Rate Swap Maturing in 2025 | Fair Value | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of variable interest rate swaps | $ (7,908) | $ (9,408) |
DERIVATIVE INSTRUMENTS, HEDGI_3
DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME - Schedule of Terms and Fair Value of Derivative Financial Instruments (Details) $ in Thousands | Jun. 30, 2024 USD ($) instrument | Dec. 31, 2023 USD ($) |
Interest Rate Swap | Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Aggregate notional | $ 820,000 | |
Fair value assets (liabilities) | $ 21,794 | $ 23,063 |
$250M Interest Rate Swap Maturing in 2025 | Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments | instrument | 4 | |
Aggregate notional | $ 250,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Interest rate (as a percent) | 2.99% | |
Fair value assets (liabilities) | $ 5,700 | 4,952 |
$100M Interest Rate Swap Maturing in 2025 | Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments | instrument | 2 | |
Aggregate notional | $ 100,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Interest rate (as a percent) | 2.66% | |
Fair value assets (liabilities) | $ 2,350 | 2,415 |
$200M Interest Rate Swap Maturing in 2025 | Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments | instrument | 2 | |
Aggregate notional | $ 200,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Interest rate (as a percent) | 2.37% | |
Fair value assets (liabilities) | $ 5,314 | 5,716 |
$120M Interest Rate Swap Maturing in 2024 | Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments | instrument | 3 | |
Aggregate notional | $ 120,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Interest rate (as a percent) | 1.58% | |
Fair value assets (liabilities) | $ 199 | 2,236 |
$150M Interest Rate Swap Maturing in 2026 | Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments | instrument | 3 | |
Aggregate notional | $ 150,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Interest rate (as a percent) | 1.68% | |
Fair value assets (liabilities) | $ 8,231 | 7,744 |
$155M Interest Rate Swap Maturing in 2025 | Fair Value | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments | instrument | 2 | |
Aggregate notional | $ 155,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Blending floating interest rate (as a percent) | 3.70% | |
Fair value assets (liabilities) | $ (7,908) | (9,408) |
Fixed interest rate (as a percent) | 4.52% | |
$150M Forward-Starting Interest Rate Swap Maturing in 2034 | Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of instruments | instrument | 3 | |
Aggregate notional | $ 150,000 | |
Variable interest rate, type [Extensible enumeration] | Secured Overnight Financing Rate (SOFR) [Member] | |
Interest rate (as a percent) | 3.44% | |
Fair value assets (liabilities) | $ 0 | $ (700) |
DERIVATIVE INSTRUMENTS, HEDGI_4
DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME - Additional Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 USD ($) derivativeContract | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Gain reclassified from AOCI into income, effective portion, net | $ 4.9 | $ 3.5 | $ 9.8 | $ 7.7 | ||
$150M Forward-Starting Interest Rate Swap Maturing in 2034 | Kite Realty Group, L.P. | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Number of instruments | instrument | 3 | |||||
Aggregate notional | $ 150 | |||||
Fixed interest rate (as a percent) | 3.44% | |||||
Proceeds from terminated interest rate swap contracts | 0.7 | |||||
$150M Forward-Starting Interest Rate Swap Maturing in 2032 | Kite Realty Group, L.P. | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Aggregate notional | $ 150 | |||||
Proceeds from terminated interest rate swap contracts | $ 30.9 | |||||
Number of instruments terminated | derivativeContract | 2 | |||||
Amount reclassified from terminated interest rate swap contracts | $ 3.1 | |||||
Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Amount expected to be reclassified to interest expense over the next 12 months | $ 21.1 |
SHAREHOLDERS_ EQUITY (Details)
SHAREHOLDERS’ EQUITY (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | ||||
Dividends declared per common share (in USD per share) | $ 0.25 | $ 0.24 | $ 0.50 | $ 0.48 |
Aggregate value of shares authorized to be repurchased | $ 300,000,000 | $ 300,000,000 | ||
Number of shares repurchased (in shares) | 0 |
EARNINGS PER SHARE OR UNIT (Det
EARNINGS PER SHARE OR UNIT (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Weighted average limited partner units outstanding, basic (in shares) | 3.7 | 3 | 3.7 | 3 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 1 Months Ended | |||
Jul. 31, 2024 | Jun. 30, 2024 | Dec. 31, 2021 | Dec. 31, 2017 | |
Embassy Suites at Eddy St. Commons Joint Venture | ||||
Guarantor Obligations [Line Items] | ||||
Ownership percentage in equity method investment (as a percent) | 35% | |||
Construction loan payable | $ 32,300,000 | |||
Embassy Suites at Eddy St. Commons Joint Venture | Subsequent Event | ||||
Guarantor Obligations [Line Items] | ||||
Ownership percentage in equity method investment (as a percent) | 35% | |||
Embassy Suites at Eddy St. Commons Joint Venture | Payment Guarantee | ||||
Guarantor Obligations [Line Items] | ||||
Current amount of obligation | $ 5,900,000 | |||
Embassy Suites at Eddy St. Commons Joint Venture | Payment Guarantee | Construction Contracts | ||||
Guarantor Obligations [Line Items] | ||||
Current amount of obligation | 11,300,000 | |||
Embassy Suites at Eddy St. Commons Joint Venture | Construction Loans | ||||
Guarantor Obligations [Line Items] | ||||
Repayment guaranties | $ 33,800,000 | |||
Embassy Suites at Eddy St. Commons Joint Venture | Construction Loans | Subsequent Event | ||||
Guarantor Obligations [Line Items] | ||||
Repayment of construction loan | $ 10,200,000 | |||
Buckingham Joint Venture at The Corner | ||||
Guarantor Obligations [Line Items] | ||||
Construction loan payable | 70,100,000 | |||
Buckingham Joint Venture at The Corner | Payment Guarantee | Construction Contracts | ||||
Guarantor Obligations [Line Items] | ||||
Current amount of obligation | $ 35,100,000 | |||
Buckingham Joint Venture at The Corner | Construction Loans | ||||
Guarantor Obligations [Line Items] | ||||
Repayment guaranties | $ 66,200,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Jul. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | ||||
Repayment of long-term debt | $ 192,180 | $ 361,162 | ||
Embassy Suites at Eddy St. Commons Joint Venture | ||||
Subsequent Event [Line Items] | ||||
Ownership percentage in equity method investment (as a percent) | 35% | |||
Subsequent Event | Embassy Suites at Eddy St. Commons Joint Venture | ||||
Subsequent Event [Line Items] | ||||
Ownership percentage in equity method investment (as a percent) | 35% | |||
Construction Loans | Subsequent Event | Embassy Suites at Eddy St. Commons Joint Venture | ||||
Subsequent Event [Line Items] | ||||
Repayment of construction loan | $ 10,200 | |||
$120M Unsecured Term Loan | Unsecured Term Loans | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Repayment of long-term debt | $ 120,000 |