KRG - Earnings call transcript Q3 2018 | Kite Realty Group Trust

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Operator

Good day, ladies and gentlemen, and welcome to the Third Quarter 2018 Kite Reality Group Trust Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] I would now like to introduce your host for today's conference Mr. Bryan McCarthy, Senior Vice President, Marketing and Communications.

begin. may You

Bryan McCarthy

good Third and Welcome Kite to Thank Earnings morning Call. Group's Quarter Realty you everyone.

Some comments subject assumptions materially of and of based Actual from future are today's uncertainties. events contain these forward-looking statements. and may are results to risks that inherent differ statements on

earnings For about certain refer XX-K. recent Today’s GAAP that also include the release can company’s Please affect the press most more please including see our results. financial non-GAAP yesterday’s a our financial on information non-GAAP to measures. of results reconciliation our our performance factors website adversely SEC available filings, remarks to measures for these

Officer, On over Wade Officer, Chairman the Executive turn President David Vice Officer, and from Kite with Operating Vice the now call today Kite; Senior Accounting and McGowan; Portfolio President John. Realty Tom Group Achenbach, President, Executive Management Chief Buell. me are Chief John will Our Chief to I call and

John Kite

Bryan. Thanks everyone. And good morning

executing objectives past quarter So our focused our goals. while on we during long-term on remaining the continued strategic

basis X% was higher growth X.X%. in continued forth square XXX foot compared year than $XX.X percentage per by set growing $.XXX lease or a our We year. over We and this of last This our ABR points improved we rent to our by XX.X%, generated to grew we past time the million year. increase NOI last $XX.XX base share. by earnings per small to of same-store X.X% FFO release driven shop As

through XXXX. only strong we have maturities million sheet $XX.X of remains balance loan grade and investment Our currently

an six loan. allowed was swap indicative weighted we new this XX Following also debt retire is to than XX% seven-year we to structure due our rate year of $XXX loan debt on fully average XXXX. loan of be partnerships. no and The points loan expect maturity $XXX the prepay ingenuity The strong This the calendar Based third loan result year. full due financial proceeds flexibility. unique unsecured improved one the of a $XX year closed in the public ladder term so that use the in bond to issuance. maturity credit years pricing of inside our we on comes any our basis approximately our loan improves to all million team's due loan XXXX of in the on us quarter improve and The our a term which debt million lending increase a our risk our and term innovative million product reduces five and more ten-year in

times, slightly reducing our near term. While this remain quarter our net to to debt to past leverage X.X in we up EBITDA the picked committed

center. two On portfolio last our compared vacancies. note we've to having Toys To-date two have far to in operating leases time to this anchor lease XX.X%. percentage anchor XXX on The a multifamily we year-to-date progress previously boxes collectively grocery development Eddy a XXX further at quarter the square development, of With September an mixed-use restaurant, leases our box executing Suites in team's phase features made additional executed underway XX% two residential leases end and two embassy feet completed tenant in units, approximately signed along vibrant our mixed-use addition projects. of than office Looking restaurants, openings development. Street in retail units, units are to square leases service the multifamily a ability The operations, We leasing third is XXX execute Notre Dame. bringing Toys Commons third anchor our subsequent respect executed retail current continue exciting for XX signed the for our on make in Construction XXX,XXX with Eddy progress box X,XXX year. uncomplicated Street is community currently to to an Thus two of sold Commons at demonstrates square offerings. we we quarter units. residential to development sale we of of space two signed feet and our footage. and quarter XX% space our negotiation and and addition shops, that by and accounting the at and efforts newest and related leases with

Regarding at $X.XX per guidance a of to reaffirmed range share. our earnings, XXXX $X.XX we've

disclosed Commons XXXX in a will in keep that mind received which reoccur XXXX, Looking next at XXXX XXXX. $X.X Eddy forward development not to which previously is per X will Street impact will items the year we please following substantial the In year share reduction. fee reduction. share in joint from year TH amortization below the non-cash per venture that a and impact full reflects XXXX $X.XX per reduction. will that partial first income reoccur rent share be $X.XX of XXXX, accelerated Toys market not a included our

of $X.XX outcome per share per the hedging in New on term expense and lease between $X.XX by will will interest causing and impact the $X.XX XXXX new depending reduction G&A accounting increase our XXXX loan share. activities standards in

we disposition details guidance the along quarter. will we activity range with when anticipate deleveraging continued more anticipated addition, next and of asset issue provide In and in sales XXXX

example XXXX. the approximately for Our will XXXX deals late anchor for account we expectation variances incremental guidance including in of generate we come NOI the take that of positive will of million also our online expect into will half year-to-date that which $X executed all expect

talent Our maintaining Management. and since we the Wade of Thanks Instructions] on-board, [Operator looking promoted level Vice everyone to today open us best-in-class at having as call questions. question President chief Heath joining and and Thank [indiscernible] Citi. excited our we Executive has Portfolio and changes are Fear Lastly, XXXX operating known line credentials continue. comes and Christy our join Wade officer. These Heath’s member of first us vice represent team executive vision recently that a bring we're also was financial from that for anticipate valued been the a McElroy to president to executive of will our commitment for and you. operator the platform. on well Achenbach we're forward to his

open. Your is line

Christy McElroy

I appreciate Hey, the good everyone. morning color on XXXX. early John

thinking that been made to sounds a side fundamentals of have progress did of you're today. lot a deals about subsequent like the Just and occupancy of you you more mentioned recognize quarter at It couple leasing that you on drivers lease some XX.X% end. to the

it's as we as commence should expected NOI moving which think we Just we be in thinking the the million commence that deals think should about some some year year the be to as lease of and and detailed? that late impact drag of commence talked XXXX, offset I how next those spread the that XX.X between is thinking that about you and rate of occupancy about into about half $X how of you next rate of lease narrows to

John Kite

made Well, that giving look of on in to to fine progress if I think lay quarter Christy here trying and lot but out you last out the what we've particularly a not guidance again a really going be walk happening. what's we're of light to is line trying shed to and trying some

you lease us to square leased total feet it space of If just what we're of that way about that back we to well where in it half of kind leaves not XX% saying were. kind big do at us that in anchor getting think to gets really that's obviously to XXX XXX,XXX a to of this that about our I'm the on going we're picture XX.X% approximately point we give you vacancy. back If just

in a I leased think while. for we anchors were the at XX%

at I in these these mean feet XX right at but a XX of we're because to and we some we're is we we this For up at don't want boxes while number XXX,XXX obviously out looking see we as caught the when which too split. look about of boxes certainly get boxes now

mean is a So feet. and but it of lot we larger the them XXX,XXX a part a deals important on changes have of the activity are those bit number the couple spaces. obviously great I little

those this and deal of blended look when those XX one points literally and kind pulled segues impactful we our a think did deals to done I one XXX of even basis being impact is our So just quarter spreads positive into is out you spread. at getting

few incrementally a you of big can make difference. done deals see a these So getting

us will begins also to commenced be on our you I lease giving when range mean and a leased our downside. I kind give help between as certainly occupancy, we of of laws So the and guidance numbers spread contract on the percentage of can without think hurt small we upside the they've as our these us

Christy McElroy

stores? the could exposure those quite not box thinking metrics your year in it's about from next into and from rent how potential are from recognizing lease it's but boxes or further those closings see the you middle that And you and that more

John Kite

Sure.

we XX Christy two we perspective still – them we have process through as big-picture expirations. to near this a started we from So we're pretty the with had had, conversation with in deals obviously because term of

So be deal those going then a will to I deals are us third and back that coming outright was there be rejected. to believe

we'll with to speaking us XX those. able pretty there down like size Generally all because So a be to come on spaces. puts decent. deals us for from the those to of feels in currently of but that's favorable them kind we're pretty place It conversations like it of of feels

company they think not need of out coming by them be back bankruptcy. to to I ongoing generally token they are to afraid but We same an take – be stores the want

So good. this is into but about be and at guidance what it be I feels February feel for pretty pretty give in we'll again I pretty going to locked we when actually decent it think point XX that

Christy McElroy

on is a range deceleration store you're conservatism the a X.X% more just year-to-date Are you're maintaining and you on QX same Okay into lastly to of you the a at on range? implying sort that just today X.X%, then or basis. it kept X%

John Kite

the it's latter. think I

number. We assumed debt of have XXX,XXX in QX same-store about bad our expense

XXX,XXX debt quarter we of about only have expense. This bad

quarters. I over the XXX,XXX averaged about think first three we've

all So but that's warranted with about there's there's in conservatism -- others. and the the with environment that things we're Firm talking Mattress some

end don't and to or we want we the better be have we'll that around all have hopefully So be but mean that need cautious bad in see, range I debt we'll just to at more case XXX we expense. top of

Christy McElroy

for Okay. Thanks time. the

John Kite

Thanks Christy.

Operator

Thank of Markets. our of from Todd comes you KeyBanc Capital line question Thomas and the next

open. is line Your

Todd Thomas

Hi thanks.

date this any anchors all or Just as the so to back leasing $X essentially XXXX the the NOI or you of far will in in the mentioned? eight signed ‘XX commence year beginning early anchor to commencements later late what million and of

John Kite

early there's a in think right ‘XX couple sorry open I'm actually two there now. I maybe are but that commenced Well, there was and that there, are one

we get feel bit it, flowing of majority XXXX back but to Todd So a it's or months gets a fourth much quarter actually at the like when little bit the and the very look ‘XX weighted all of little it's then remaining half through. you in

Todd Thomas

Okay same and many any of those of anchors in those are or how are pool? the store

John Kite

I the all of so almost them. those store in are same believe seven pool it's of

Todd Thomas

that same drag so impacting about expect growth Base in growing then store. of the line? And more rents next are some recoveries you've a it. smooth Got little we from the you little normalize to this a at of talked same-store straightforward base expect year. a rent sort clip Should XXXX of decent some bit factors to are Do NOI and the bit? be year out the below

John Kite

the majority Well, been vacancy. has great look from of I think this the through

‘XX – as we that gets half of and back these into think better. as the So I get

what's as I ‘XX and a and think on and so recovery. the an is XXX the more box that think take I be basis lease mean recovery vacancy giving pretty points that recovery. certainly you're similar. at in X.X% impact obviously when then getting deals should going XXXX things coming rent half the you but think our about eight not get that's another these creates if takes vacancy, both other start Toys Again right it's to really alone probably same-store create way time. more but impact in feeling the basis the I probably you in a the impact XX open there into then it's significant much the that's that we I happened. since back think the rates leased commencement guidance of It's doesn't I you're already mean it that big front and that half now to we've but going back back normal to same-store run you have of annualized

Todd Thomas

required how earlier last just little a might be talk Maybe a Okay. Pan then was the and what the it just little REITs could of hotel REIT. wondering the the I in lastly be and developments that just Got capital there potential might you month. can upside the were Am about involvement much bit to share you sort what in if Plaza is press

John Kite

Sure. in kind that the indicated very it's our there's and opportunity. certainly That press of in Well, a I is excited etcetera. that this we – potential as This ago that's the that think of we're end that said real early estate. we discussions great estate knew is in the all the as we day something eight major was we this about real years that

cost As a to what got going land, overall more on REIT. of think determined what obviously we're along structure, the we're be retail and to doesn't. quite would the that's be time. to far so but capital what the take I a on around We've do would risk REITs based returns Look capital going and as and that there cautious owns REIT goes the of of The obviously going this really works the determinations to positive the it's from size deal, based their be what it's lines making a the potential bit be. very

going thoughtful we're to So endgame is the be there. very, around what very

Todd Thomas

Okay. Thank you.

Operator

our question from the you Raymond Collin Mings next of Thank line James. comes of and

open. is line Your

Collin Mings

how you're market call million previously but to morning. communicated the you to details on not assets maybe just update as provide you're assets again just big recognizing Thanks. a more John to specific Good of look ever. us the about $XXX maybe next thinking you'd deal bring to going until bit

moving look market? kind through process kind like asset to kind at some on of pricing you you as been can sort bring anything movement assets provide stands just this Just of to and any where you that juncture as of that levels of

John Kite

I more guidance year Sure. would clear Yes, about issue maybe of speak. not. giving we disposing call I as There's as million I that least on a one at be when chance the but update working occur frankly mean on we definitely will we're this we last two Collin, $XXX very we mentioned just a on that think dispositions talked or but

I have at Heath XXXX that to capital in we're That's for really going as have structure. at we're look our ‘XX. to looking So think down something involved to I that and strategy sit overall and our want

perspective. but that and to capital through say at guess down to a capital we I it's of suffice pre-matured we're So and and say everything thinking everything looking plan that path are kind continuing a structure from

the feel we're So we find come on back fair to to to I looking you think assets we'll but definitely that that pretty and we're sell. able value positive

Collin Mings

Fair enough. Okay.

been maybe to of Just Tom that biggest are big from you've margin the or just has on as you've around dynamic the been up kind either the of of some a well. maybe on your executing communication tenants maybe the about what as about box surge talked bit of that and talk some willingness it time that just space sounds some and receiving little split evolved over like push-back

Tom McGowan

if that keep they pushing get just to demand at in have like market the as relatively do going that need it's and feel going little the stable say to things would is fine pushing actually – to numbers fair I and things is from to in pushing cautious if terms that and the a Yes, through these. move through equitable of we and keep got to try documents and I everyone's keep think a be obviously more executed lease we committee, basics this standpoint the environment off push-back deal diligence get as just being quickly of, tune and to are you their of new but get one we one a with of so able the to back possible we're

we just keep things haven't changed quickly. to got move and moving It's So tremendously.

John Kite

to it question, example look "R" really the couple down Collin splitting the to as a I returns just going and basis case-by-case tenancy splitting the and And it boxes. your that's of those relates comes we a are Us, to Toys be of in and

there's splitting doing If that might the base and with to vibrant want sometimes that we're opposed more a get deal in something So just on one that's brings to and right return a retail not. not cost associated doing. you just it also

So evolves and I see mean just how it think case-by-case making and at we're inventory don't we're we'll look on on it it these competitive very getting as Tom but progress focused to we're and basis we strong think deals I said I a opposed and less and there's done frankly. less

completely. So year I to able think execute feel we'll be good we next going into that

Collin Mings

looks missed apologizes that of you And weighed just me. down strategic anchor in question for I All It if as the right. you a bit housekeeping on touch that maybe stuff one of that renewal kind kind last referenced little kind can spreads well. of like but one

John Kite

it capital was a There to and renewed another we I the strategic put at did it in simply center deal just us it was and couple a capital the to the into do into that that no because stabilize quarters Sure. was allowed no same it that we box mean we similar a the negative. and was where tenant ago to all deal of pretty deal sense property. at went the spread shopping

I So three a That's factor was at to the we have do we the vacuum you look the factors that and every is strategy to talk cash in of associated but these zero a metrics stuff. we those the – all we've capital. mean it's kind were deal. in about really got probably impossible why the with through biggest strategy there flow but to positive go got end this when produce

Collin Mings

Understood. Okay.

John Kite

you. Thank

Collin Mings

Thank it turn you. over. I'll

Operator

comes our the of Sandler Thank of Goldfarb and O’Neill. question next line Alexander you from

line open. is Your

Alexander Goldfarb

out thank and morning Hello you. Good there.

John. questions two So

at the where it dispositions even of items, for like the through that's $X.XX sounds negatives so. next go and first depending The more just headwinds is least then going year,

it will plus selling only time the sounds like back year. be it a that anchors It contribution. You talked won't be take partial year will but full about

other in what next for that a So some reduction may year? at earnings are the $X.XX minimum elements offset

John Kite

in mean in off still redevelopment can through little both about and pipeline. firm top trying again they're not that's to into NOI flowing – you've but the the be there. a I actually got going from we're NOI and expected I [south] of the then can up too if get that's head you more think this the get $X million completed my obviously big growth Alex for development to that's

the contractual any on of based thing on got similar more boxes boxes it's we've would of then NOI the You've you bumps, that versus impact focus I in a the the mean funny occur, about their shop look just leasing impact And small rent if etc. obviously pretty got up at of they're shops leasing but impact. lot

think can as it the were there's do bond it To that. it what several that I think but also events the we loan to the is there's value. to there's cost cost there's short-term relates long-term obviously a perspective that things but to a that a we deal positive a occurred short-term is things So there and term one-time from deal

but It's up. lease lease the all up stuff. it's impact will really the So end in

Alexander Goldfarb

And year? Street may you then similar had via the hotel that a the in this side thing Eddy that in to [indiscernible], the ‘XX fee potential positive a is be to

John Kite

fees to again and associated, certainly tell there or that it's too substantial early it's it associated I definitely but not fees you generally with Yes. get mean would could in be you down deal of Alex reoccurring. be particularly late the not could road but significant it's there cash occur with just ‘XX whether that – any there fees some

Alexander Goldfarb

but there's in on negatives like ask it and X down plus just going then said on or we're and X but probably you to sounds Okay that positive. what about dispose I'm XX

is -- online. suddenly spoken side example see they Do dispose. a maybe a a Do then and on that's or small bit So as the significant billion coming of you selling something that's it you a on little NOI you refine. you Brixmor side to and like do north next significant guys it's Then XXX million? leasing about half like sales the [indiscernible] of see a year amount far just yes plus up disposition the were little bit, for

John Kite

it's as afraid just think good at us but I the but Heath to opportunities have looking have our involved we the plan we find want opportunity early to we deleveraging say capital want over use XXXX. do doing think mentioned to and and it the I and proceeds extent that to it clearly too for I we've for get to we're and not I years redevelopment think that in of at do to when next that fair one Alex that again value good do utilize and can projects, more us I than year that got make us I five accelerate we to got-- try do got not an behind then sure to etc. for but we in proceeds but there's we're completely

on for any that's XXXX the So boxes beyond leasing really putting are up focusing I said growth. on as we objective be the pivoting and to towards is to call and that deleveraging year behind the last XXXX the us,

more So few we'll sales takes do a do to if that that. asset

Alexander Goldfarb

John. Thank Okay. you

John Kite

Thanks.

Operator

Thank of you. question the comes of from America. Bank next your of Schmidt line Craig And

is line open. Your

Craig Schmidt

mean significantly given shops lift above do now your alluded small think occupancy push Thank I just but that still can here? you get shops earlier in much that the picked you obviously the room you small to and you're peers, and up saw I you you. again how Yes,

John Kite

I Craig healthy. it Well, XX to XX, think look continues we're be slightly above almost

reason us that at relatively can't we again get least why a inventories around quality low basis are any there's maybe points think XX space. don't and better I another on can because So we gets XXX little assume which

opportunities more there. out can't and that push I and as Now up so opportunity to but there's maybe pay that you've you're minuses think you pluses aren't keeping tenants that – going also got higher you definitely obviously to get higher have

points XX above Before getting on to almost that. and we focused XXX were just that's right very basis now we're

can't reason So we no to continue to push it. think

Craig Schmidt

they services mentioned that restaurant? had up and the of the lot a service are in like small are shop and you grocery pick Okay

John Kite

that been other Yes. I push. of? we've big the small shop lot think been a space think I can big, both service restaurant you has mean is a things doing oriented of Tom any

Tom McGowan

Yes.

I personal think have you it training. big has medical a to where general diversification different in of forms have back pediatric you dentist, been ties as health

going it's help us and So power just can full as It's growth diversification give pricing drive to much we and bring in. occupancy.

Craig Schmidt

Thank you. Great.

John Kite

Thank you.

Operator

Thank Barclays. you is next of and our question line Tsai Linda from of the

Your line is open.

Linda Tsai

Hi.

Regarding anchor are leases you for more How dispositions, the have vacant anchor or been and talked the back-filling it boxes, boxes eight longer about your that portfolio many redevelopment, in boxes those, to plans signed. for does what term? the relates are the

John Kite

Yes. Linda have about in that's as little that's earlier we in I feet we total square the remaining mentioned total currently. approximate XX have boxes in XXX,XXX -- boxes about

again XX% we change splitting back what on can that XXX,XXXX number we to lease spaces of that can as on that we if the anchors. based careful to really focused feet be Now the get just with mentioned but and in lease is half I want numbers we're mean the I

than we'll on think do I think more square on the focused that we footage. but and So the focused better number less we're

Linda Tsai

goal opposed of to any primary remaining redeveloping So as releasing the -- is those

John Kite

I of and are probably call would box repositioning. more right we're good Yes general the of on doing be sometimes these frankly of and are so the as the that that's the we pretty you these be if some shops but just Yes. could goal and majority what we on quite in box it. would we now splitting splitting the a we adjacent the If leasing have redevelopment activity box might primary straightforward we're work minor mean call

straight forward. So it's pretty

shops be small mostly it. again we're to Now it's doing maybe we're out at re-reposition box, going could redevelopment, but that a if split a what leasing some whatever take

Linda Tsai

comments on the that would a improve more XXXX? you of clear this then so far in sorry overall by year-end totally is anchor ‘XX not certainty in or occupancy it's And in based call, to expect

John Kite

occupancy occurring lease expect I weighted to and occupancy percentage expect of income the is get that No, deals Obviously that it's ‘XX. because more think lease towards particularly to in overall in percentage but these in be would we to ‘XX. we improve both mentioned we half going to eight

Linda Tsai

– then And

John Kite

ahead. Go am Linda. I sorry

Linda Tsai

ahead, sorry. go No,

John Kite

pretty to say just about give was be our I will going we clear when lease guidance percentages. we

Linda Tsai

in of think then just yet like thanks overall Okay environments closures. lease more and Has at the retail power? having the in some pricing played in terms this your tide of spite landlords all ongoing is improved you it negotiations? seems out Do turning

John Kite

in it's for I previous everybody just leases tide determination right we remaining mean kind has I you retailers to figure just highlighted and have what's that and definite strong user. best the pretty vacancies out pretty user that Tom and but retailer at this relates it it's try in deals to we but activity, demand there's over across always push-pull demand the but a there's Yes, out I property the that quarter are of look up, It's you center the relationship when the comes have that that fact that compared the we much demand because the look best as but as together working shopping down total have may and that Then to have macro spreads to the there's board the you feel been eight always make space. we've its else a shows the you when year-and-a-half these next that we it's got I the positive when by able and spreads landlords at of clear relationship a that it and spreads think negative think there turned. mean I the look probably are to are year two we doesn't each sign kind down picture with small don't between the to looking with we're down year you this when it at individual that the volume as again the and and pickup and not to certainly that's you've property

well. this that's why takes time So as

Tom McGowan

on beauty. add increase continues the grocery different working value segments that and retailers I also health with that side, of productivity and to on the we're would and the side, the

at So the pace there strong demand pushing and for that for are pushing are is productive which ones being sure. helping out a us

Linda Tsai

Thanks.

John Kite

Thank you.

Operator

of Instructions] the Securities. line Chris question Lucas of Thank Our One [Operator Capital is you. next on

Your line is open.

Chris Lucas

I Hey good unique loan morning debt savings a if you sort to than at. relative have have provide been flexibility had that comparable the of in there a priced route? might unsecured which you of loan the other cost guys. about you with what that term look expect in John, terms had have that guess you at you the term sort the earlier bond mentioned call are done to you would was greater

John Kite

kind by pre-paying then and good Also Absolutely ones one loan sure. our at on long trying other as of primary have the $XXX million the maturity real you're hit stacking from look and is the what that's when ahead. relates we think this actually think as our that's pre-payable and that's day of and complacency a mean that time, and For it highlighted and have is, prepay the in been the $XX was that and When that think kind frankly term [lattered] us be but in to some availability want your well. XX/XX about and capital look continually we that maturities just we that to the surprised as XXXX think would at to we're the front that all EBITDA as of just can the I in about idea part mean that of pre-paying the that end I we of as in debt might to our right. we now the huge debt ability flexibility at looking people people's of about we important think seven-year of to million to so loans, right perspective I space term the XXXX, as the we REIT we the big Chris. relates term ability future

Chris Lucas

the front. then sort a lease and is questions sort going to conversation, commencement Great that there? couple shop what's guess signing space the back to I One rent from of gap typical of on

John Kite

say you lot build to bit there has, no got typical might deal it’s space. of or a have I box a nail restaurant that's think hard deal have faster spaces might that than build-out a because is shop out. salon definitely quite you It's a no,

six So months it's months, to Tom six on average average nine probably on –

Tom McGowan

as at more the smaller area up the the with and at lease pick rapidly move really then we much that a at point, we their contractors. of to Yes, tenant mercy time we're where times

push we help get them and always to permitting. try So through

So and go we even quicker to a course work it of on day. but faster always every it's that process we want much

Chris Lucas

Yes.

leases you've relates and kind What of got of a lighter ‘XX on Thanks the rents from does number relative is least sort maturities, ‘XX and as a actually at the mark-to-market to rate? Okay. number space, favorable light are you out a expiring, just look to like. shop of then fairly again the volume somewhat look what that overall help of lease those years the it to fairly higher even given then generally on get the and

John Kite

XX, you look XXXX if do and are is be have looking right you general look at XXXX and certainly average rents in at look our at box mean so and XX better. box and able – if we you to think XX that Yes. our should I we you're

of cash peers, part do gap huge. of renewal about I deals – a but our leasing a small we there's more our opportunity you talk rent I and there hard XX% in if It's the where with that and into it's shop this spreads our not didn't tremendous that a a maybe but a And is and our gets So versus to space I tremendous there's than that bumps print say the of mean little probably rent bump so most there. but extremely minimum do that the Chris fact lot on shop from we spreads difference mean annual have call the is of has we period. push a a bump there rent XX% difference after X% not

flow I'm interest. it so I think itself kind but be like gap at earning on It's a that look a starts is again think the cash to it substantial – really when we're you mark-to-market interest it's as that of saying. there's grow won't -- mark-to-market big I capital that's grows to on as cash So deal. real what of kind on But focused the really

things can again X% our top I do So on you I NOI we some the what at think the my think if it on that just another we're shops and lease is of head that maybe off very mean there focused can I of approximately. that's and rent in average X that million

it. on focused we're So

Chris Lucas

Thank Great. you. Appreciate it.

John Kite

Chris. you Thank

Operator

I'd conference turn Kite time over the at enough for Thank Mr. closing back John like to remarks. you questions. to there the further and this

John Kite

forward everybody I seeing Well, us. next hopefully you. thank Thank just week. to Look for Okay. to everybody Nareit at joining want

Operator

you Ladies for in gentlemen thank conclude does conference. and participation your the program. This today's

Everyone have day. now may a disconnect. You great

Bryan McCarthy	SVP-Marketing & Communications
John Kite	Chief Executive Officer
Tom McGowan	Chief Operating Officer
Wade Achenbach	Executive Vice President Portfolio Management
David Buell	Senior Vice President, Chief Accounting Officer
Christy McElroy	Citi Group
Todd Thomas	KeyBanc Capital Markets
Collin Mings	Raymond James
Alexander Goldfarb	Sandler O’Neill
Craig Schmidt	Bank of America
Linda Tsai	Barclays
Chris Lucas	Capital One Securities

Kite Realty Group Trust (KRG) 3 Nov 182018 Q3 Earnings call transcript