KRG - Earnings call transcript Q3 2019 | Kite Realty Group Trust

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2019 Kite Realty Group Trust Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Bryan McCarthy, Senior Vice President, Marketing and Communications. Please go ahead, sir.

Bryan McCarthy

Thank you, and good morning, everyone. Group's earnings Realty Kite to third call. quarter Welcome

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

about information can that please factors company's our most adversely filings, our SEC the including the recent results, more For affect see XX-K.

measures non-GAAP on to to yesterday's these release available our Today's for refer non-GAAP GAAP remarks earnings our Please performance also financial results. financial measures. include of website certain reconciliation press

the are Officer, Achenbach; call Heath Officer, Operating President Officer, Vice Senior Buell; President with Realty On Vice Colton. Dave me today Jason Chief Senior Vice Wade and Financial Chief Chairman John Markets Fear; President Kite and from President, Executive and Officer, Group Executive Chief Capital Executive Tom Vice McGowan; and President, and Relations, Accounting Chief and Management, Kite; Investor Portfolio

over turn to I the will call now John.

John Kite

morning, Bryan. Thanks, everybody. Good

take In our a sell $X.X reviewing Before assets discuss billion plan balance of we and up a February, Project to to sheet. non-core results, bold to minute the announced deleverage wanted I to Focus.

and in we sold XX million and are later, I'm for gross so the of we've proceeds. just incredibly $XXX for Here team assets X grateful executing proud months flawlessly.

the versus Focus: Some We investor August. our X%. of approximately was expected, resulting different interesting transacted rate June date weighted exactly spectrum was non-core average of with Project facts of across original assets in late buyers on about late as Pricing profiles. a these closing blended XX expectation The cap

stand now forma growth with a deliver our located that the this line assets the XX% impacts we of and think had $XX.XX, to I focused ABR ABR often were only portfolio total and gross lower $XX.XX. KRG's we And did After sold in compares non-core migration we we Southern plan, demographic asked, United these on benefit and we we approximately Not accelerating. our a Western got of could markets more are what from The picked portfolio have time. States. trends pro now? expected. to in that an undeniably don't better ABR with resulting proceeds, why the of We've announced are are

have drawn of we've which all net started net portfolio naturally we we outstanding and we have balance million of debt-to-EBITDA optionality XXXX. more our as behind begs We with what's Focus the into $XXX line, affording today, question, the As Taking maturities the us, sheet got into year allows us quarter, it improved X.Xx. zero reminder, next? the of as preferreds. Bottom tremendous And sales end account on three through head to X.Xx. credit, the line an Project XXXX. debt satisfy of no us focused a after is debt-to-EBITDA with our With a that's

been it's capital as gross balance redevelopment with in operations this produce we've plan, Beyond low-leverage and not to earnings superior all Focus. to doing It's embedding vacancy, about allocation; elaborate referring opportunities and uncovering principles: anchoring fixed all our growth target sheet. investment-grade, a this an on Earnings tenants. filling Internally, organic operations, rent commitment CAM, consistent through prudent maintain scale and pushing X gain markets; growth an is high-quality of bumps, implementing focusing contractual spreads, rather

chop requires with at to away discount our in creative. dispositions that cost cross-purposes is our and be continue of target capital to and importantly, maintaining Match our at with our not scale us As markets, it's likely, leverage growing funding select NAV. acquisitions opportunistic resourceful for we'll earnings provided goals. gaining current Most to

acquisitions. to gears Switching

off-market Foods-anchored and transaction. XXX,XXX-square We the purchase in During an were able to Indianapolis this anchored we a community $XX for million. foot quarter, Whole purchased center in center Target-shadow

for this great upgrade levels This $XX.X tenancy blended cap reflect total with drive real a have and rate. acquisitions at X% to expectations estate. at We the brings asset high-quality to for that XXXX the rents million, plans approximately

at adjusted $X.XX earnings per a FFO and highlights. our million take We or $XX generated operational of let's share. look Now

XX, For adjusted the per the X FFO expense rent NOI driven months grew X.X% ended we to $X.XX same-property increases We in last base year, September and share. generated of by by compared savings. primarily

renewals feet. quarter, new approximately square tenants, representing third XX over rent important spreads. square XX all we for of had executed these XXX,XXX note X but It's the and XXX,XXX and positive feet, the leases renewal where that to of leases During anchor

new executed XX X.X the over million Over XXX we've square trailing feet. and for leases renewal months,

cash the with over to to Big we've continue beginning approximately since leases signing XX%. the had Surge spread quarter. program, lease our XXXX. We total make a leases X brings third of include XXX,XXX The This XX box and the of boxes very Box XXXX year-to-date comparable signed progress big XX feet. of another XX The since in good square

to opened XX the new leases with QX the million open return XX total anticipated early item XX, on and we've September of over estimated the XXXX. is approximately $XX cost of of capital As estimated the XX note, with XXXX An remainder in to leases cost XX%. with of an associated

the the risk-adjusted has about pipeline redevelopment returns. redevelopment Some Surge our investors our have facto Box of been Well, asked Big depth de better with us pipeline.

our point efforts, at of stands anchored retail significant our increase. rate result year-over-year a leased XXX As a XX%, leasing basis

a still basis KRG. year-over-year retail an small rate high all-time XXX leased increase is for point XX%, and Our shop

over $X spread NOI million that currently months, to attributable next of XX.X%. portfolio over with of is equates to online XX.X%, Big XX XXX spread the occupancy success to total percentage the of Our come over economic the Surge. of will at lease million point basis which is $X Box a This our

us points X.X%. range raising tightening NOI assumption to to at We're share. X% assumption The guidance. to XXXX basis impacts positive having disposition range. to Turning the our the also the $X.XX our guidance share, improved achieved same-property of same-store of higher midpoint end $X.XX growth by a per FFO by to roughly $X.XX of We're which midpoint per XX offset maintains the XXXX of our are

the exactly embark beginning not year, We were I'm the what team with passion we only strategy on intense and of the said We and fortunate to out we but accomplished focus pleased and company. the improve with a the to extremely with going drive. and partner be de-lever laid by results. Heath Tom portfolio, a to also are to at to surrounded and

future company on more the well a the growth balance fortress-like States. strategy United a sheet positioned concentrating is focused Our with and now for southern

for With Thank that, questions. you. we're ready operator,

Operator

Instructions]. [Operator

McElroy question comes first Citi. of from Our Christy

Christine McElroy

the for -- of year. the the with Just looking your at guidance rest

AFFO, of it that's base dividend that? Should sort and consider $X.XX. about or cash think annualized lower reset than flow that is Or be that are from as a payout the QX invest? rate we would $X.XX things to good to run midpoint which So of consider to free there post-disposition other like factors

Heath Fear

I obviously, rate basis, on would fourth revenue quarter. say, a some we run lost Christy, in the

$X.XX compared But as made we've So being fees third the really up that term we're that's quarter. already by to still received.

fees good So whether a term that's rate, were about $X.XX. not run the

little just that the I'd bit rate. run So on say high a it's probably

John Kite

terms sooner. just would X of we of the sales, what you forward of add, really, I in out Christy, only to quarter the impact last laid is Yes. acceleration total from of months go the the asset the the difference the back assumed dilution pull if

talking XXXX we think or pretty that. like obviously you had about previously we're as to XXXX, was accurate laid So about guidance sales. anything relative not from dilution and the out What the

Christine McElroy

Okay.

dividend you which giving as guidance reduce think about not look to it's from So you're funding, that just more are yet, capability? but disposing, paying a of of know looking as ahead time that just at and you rate, sort perspective, period not free more of you considering you to think acquisitions? as cash or thinking component XXXX where this about, re-tenanting to you're next leverage, flow ongoing disposing And run invest and to going not redevelopment are I growth be in sort about you how match but from how it

John Kite

took last quite very room we plan. we into I consideration that was conservative it's embarked we historically ratio to that on Sure. the I and had on been, obviously, about -- that similar to think execute when talked payout this which And took plan. the mean that we had very quarter, on frankly, we knew what we into

million rate that where those as $XX at 'XX pointed we it spend, our look have which Surge, you significant years 'XX Xx the Box spending I on year. on we per Big mean, So at you you normal spend would XX remaining in as that that's the be out, and mean, year-to-date the spending look spent we're and if those are what in I what's to I really 'XX, honestly, leases,

that the growth the existing from was same the would comfortable comfortable But be laid redevelopments dividend. up that be we 'XX box leasing to that will it we at flow the 'XX, coming and that a coming that. was that which as we the is level and in cash bumping the to sufficient is 'XX that it's knew out, grow cash flow against we are online and leasing and 'XX shop So

previous in a that wouldn't it. we And And over dividend be we significantly at but X necessarily raise is as raised comfortable out, years. to the place looking we're pointed point, I think the dividend this had the with that

at we expected comfortable. look last that leasing and projections, we at So we've coming the and cash the same that. good pretty we quarter. And 'XX, long about our the as answer flow in and 'XX but in look online it's that's feel very when done, We're

Operator

of And from our KeyBanc next Todd comes Thomas Capital question Markets.

Todd Thomas

the a question, for the high-Xx and debt-to-EBITDA the following end regarding a leverage of high of believe and on the came up to mid- bit. range. here I that Project little had originally First you reduction and on leverage, dispositions just in basis Focus at target in a

leverage I'm updated range? your prevented low relative coming that the the the So end longer-term the company? for down of curious then little are what thoughts any that to about there target forecast from closer just And variance was around to leverage a

Heath Fear

the yes, from high-Xs. the our X.X. net we range, to What we would so the very Todd, that target end EBITDA be mid- of Yes. to the debt should beginning, at said is, achieve high

where we're we going thought were we So exactly to be.

John Kite

But at of think over you some make where time. not assumptions now. That's never -- And when the of this backdrop down that in of is said -- this because it a to at extremely also when be move we for look couple is in talk certainly optionality. of a -- years, we example, But would that's about we would could over Heath Todd, credit. to are as could we period line that said mean, be undrawn Yes. we right remember, you range and next high-Xs, favorable I we that the X.X, schedule $XXX million the and And maturity I we to want mid-Xx. more debt creates earlier, a mid-

So be that X.X to the the to a about it's next that's comfortable position, optionality we're cash over really a future. able less couple or very company, whether when very this we're a out in balance and more us position and about, X.X to strong of X.X good the strong or very the look And is look sheet in strengthening why what really grow. we which the was it's of years business positioning all to grow about

Todd Thomas

just in sort then heading think of should seeing into talk of following XXXX? here you we Nora can acquisitions And terms you're how about else additional what and about Plaza, Okay. investments

John Kite

level, my macro mean, a I on remarks. think said talk I about I Sure. as on prepared let's it

can First of in of small our is and to now acquiring operation. assets, adding just set thinking Focus focused cash growing value flow, was about of existing going a achieved assets, cost that, a very of What current we all, we on capital. it one goals, focused earnings them. with we're how And each very growing participate forward, Project was

to So likelihood growth a that's in to assets, match sell profiles. us of of what with with potential continuing and acquisitions referring was I handful fund better those the

as we of So how our want have we that we cost we look can acquire with of assets to be cognizant capital. at that,

a will similar be to more be just a and Whole So very center exercise, acquired will what mentioned. you a handful it's handful that Foods acquisitions, I dispositions, but we think more in the limited there there

that's what to In to, terms the so I extremely think, even it's more quality than, maybe much assets, competitive market realizes. competitive nature, if referring of were you buy the

the billion X And $X.X numbers anticipated the obviously, shows sell in exact you would, we if we the months market. that can we of at it depth

think a it's we So we our but that have competitive target can opportunities find environment, good markets in upside.

Todd Thomas

flip helpful. And one That's straight-line the Okay. the on rent on just quick model this for last quarter. Heath

anything there to GAAP it forward? in from we rental going Is So should that detracted one-time expect the income. quarter? Or normalize

Heath Fear

of will receivable straight our normalize Yes. to quarter. bankrupt There It one line next write-off tenants. million related $X was

Operator

question next Santos And Sandler at our Daniel comes O'Neill. from

Daniel Santos

bad tenants My on this year. a are position? retailer first better come one are you after of you budget Or It's purge season? see an is to in in expecting Would below debt. overall a say that the holiday bit

John Kite

I When comfortable debt mean think is projected we quarter, look fourth bad with with our reserve. what the to be. remaining it in I Well, we're line debt bad right our we at

I that pretty seem people -- As generating look look big it's landscape boxes. getting phenomenal at statistics gloss into the at environment. at I it you at and not XX% macro, That's the a our mean the when -- if a a number. think But said, and you in leased just look will, when that right of now. you goings, that statistics, we're XXXX you retailer comings over you kind the I me if amazes we're to pretty total positive look in

that I healthy vacant business. what is That's that mean, XXX. we out means pretty of have boxes X

that, -- have you when I that tenants don't think to well. the tenants look, normal well, you're we're that do So back do always

to is where optionality. that to great probably landscape? Tom, anything landlords estate so as I that's of add we think want tenant are. lots you job do real own Our the to we have And

Thomas McGowan

Yes.

accounts, that just one And we we're only done that the seeing XX were each. think on best spaces I in X we've X the parts look on done, had side. single had that and general, at the of XX tenants is boxes you tenant diversification,

just that spent lot groups trips a or X a are --we've a you on not portfolio of those shows just We're tenants. been variety that nurture of we of lot that on year, sure we're So and focused X on focused time this wide these we relationships. making groups,

the of Sephoras, tenants with the our Bed we true as on Versona, think every same components the well are we after the year. names shop holds And nice I Baths, each grouping as small as Torrids, a of lot to work able overall that and the go

move of to think optionality, we're as theme I and got we've is we forward that to leverage amount a the use continue So inventory. with going limited

Daniel Santos

helpful. it. That's Got

Just following about to that this year you keeping of just of you with their sort that morning there feeling of more two grocery reporting and theme, was an one-off plan. article are Kroger? results restructuring on sort sort after positively Kroger tenant say store Would this Or health strong assets? is grocery-anchored

John Kite

as our grocers healthy. different mean portfolio I no it's of far than segment very as our other landscape. retail Again, are sub-segment the any Look, goes, or

job a Kroger a of doing strong that great and in to the lot and business, things space physical done of But retailers of as Yes, You is the going online that instance in investing supports clearly, in the things the But and and winners a online winners that. relates nature. platform. have it in amongst that the are buy Kroger successful physical has fundamental pick has the on store similarity footprint up losers. particular

by But traditional little same like look the a at but extreme level. quite at is a grocer an Publix, can you frankly, a executes who more token,

especially to I the think that won't So it It our strength our the struggle. strength it with of some of feel business the comfortable portfolio, personal real today my that grocery the is with year, doesn't sector. again, perspective, players as But from estate, be the mean that strong. extremely we of relates there beginning

Operator

our Compass question from Dijkum Point. comes of van And next Floris

Floris van Dijkum

earnings you as And if wondering initiative? as on you well kind expect fixed could your going on impact to forward your Great. that comment maybe I your have margins? on do guys what was of CAM

John Kite

just disputable something non-disputable. CAM on And it's process having what year. CAM say, I retailers into it the and of intensely. say the the following again, would in reconciliations Sure. that for to I'll initiative and that years, dealing out simplifies the we've is of older, been of working X complex were stretch arcane, fixed on I for with the positive the end actually back both a past an and of go at expenses landlord Having because think forth kind year, a terms

of we're So the occupancy and budget And want able that, us of annual enables grow to to cost and the it. fixed the for year CAM also eliminates on you an really simplifies retailer both the Tom, all to obviously, to add it basis. it?

Thomas McGowan

Yes.

John were best to on way boxes. what think very the can to initiative with but try the having talked same about. see at that. discussions portfolio-wide the key Burlington benefits will I then think bumps discussions are I we some And points because fixed time, great that larger the to to execute fixed us process dedicated companies more at is of simplification about we're much - annual inside more this initiative, and the and doing know we accelerate to just this there we be of always now the CAM the our for are on more and by a starting entrenched what's company. And the CAM But we

Heath Fear

Floris, leases, XX% renewal facts now leases, So fixed for are new CAM some here, XX% leases our turning on and of and are CAM. fixed to our our of so

math you in look should we over - X be if do at leases and our XX% fixed turnovers have on So years of the will our CAM.

recovery see, you'll what you'll based ratio see also and should that. on -- our increase also, So

just win-win terms a sides. at of lot in less So reconciliations. both it's the CAM noise a It's a -- caused for great program. year-end It it's

John Kite

the you on fixated focus I our your rents. what people the -- is What day, sight And tenant? business important for lose in cost think thing. I most they Floris, sometimes of the is our the the this mean, I recovering? mean, are the ABR. gross very And rent? this What end really, it's And the occupancy is But what that's get that gross really is. is AGR of

pivot you'll they more think us and guys very with about see more our favorably. you I I So compare think to gross rents conversing because

Floris van Dijkum

operators the we be this it if -- institute obviously, expense recoveries actually, -- mall And to mean guys you certainly, of greater Would it Is look than your portfolio? to before got better like a of the profit were it get your recoveries across some the XXX% I center. where if you GGP, and to, were sector, percentage a bought, more on possible Simon

John Kite

the the portfolio and it on think occupancy efficiency a profitable lead both process focused efficiency. it of terms this nature ultimately, look, as different Well, efficiency. and more a center. sub-result of depends savings cost cost don't can we're on deal. the We're on of obviously, the associated profit I overseeing individual And a overall But complex that there mean I lot in a so each it. of more a the I of that's to mean maybe simplifying in ways. There's enterprise, with focused

the a the but center over of way landlord, hopefully, then and a does better it's retailer not And run time, I somewhat drive business. into that's to profit just for both the it. behind turn that And think the

Floris van Dijkum

follow-up, acquisition. on Foods Whole Great. One just may, more the if I

center? it's around going you X think that of really the pretty drive can that rents for insinuating that Why do high you kind we grocer, upside? You're -- assume it's Should flat anchor a cap. seems done at where income? Or is forward? And anchor

John Kite

feel the it to that like happy a off-market mean, for that. number, with relates way. everybody, And transaction. And let's was it's I pleased good the price, so it as we're execution we it with put Well, we're an

going to relates IRRs mean, on I we're anyway. more forward, focused really it As

particular obviously the any and here. It's can that. So deal IRR cap IRR, to rate deceiving on exceed favorable going-in the will the be

estate, property what well-located. other with with would in estate. is is on the call upside in believe do that real the extremely can sit we've we this the think I market, arguably what irreplaceable it fact So very very, We that is a strong done properties real which we

will time, over we ultimately, capital. And invest

We will get strong returns.

the that. will And be we will rents vis-à-vis ultimately We the strong. drive IRRs, think,

caught us, -- So in and look deal, that. there's It's kind great upside. up for can a of deal definitely you for one get looking at

Thomas McGowan

is I create decision XX-acre this really beyond thing only would the tremendous parcel, focused this of that The and years. Yes. real parcel And estate. we're value we can retailers, add have through simply on part the as the

a Whole Target enhanced best that just the is So significant part the was big it doing renovation. store being well. submarket in the And of with Foods in city.

So believe we that that there. all to us can leads successful be

Operator

Lynch. Schmidt And our from question next of Merrill comes America Craig Bank of

Craig Schmidt

I tell expect done just Ascenas. out Ascenas, and guys you X prior you have wonder mean, any XX releasing I me year-end. any to wanted what are I those I the the if Barns eight of on Dress you've think ABR or do could the X -- to if stores

Heath Fear

Yes.

basis in X negotiations, Dress we And is the So those committed. an them been and sold, locations, million. $X.X X to total for advanced rent have one on Barns with of the annualized we're One prospecting. respect are X

the that's Barn Dress So update.

Craig Schmidt

And Okay. you do long how think…

Thomas McGowan

a just very say, set week, of to very three expect here be shortly. within signed those Craig, going we a to we leases was got had We early and on I up action trip this.

Craig Schmidt

type of for of are replacements not name, in? the those a business type I'm what tenants, just And but looking

Thomas McGowan

whenever itself. in terms XX,XXX. have that retailers, actual use to costs, It's off the somewhat size into a But national of of tricky getting we you're component X,XXX

So spaces. that national good, working we're taking they the with. one of But of groups those will strong are X tenants be

Operator

And of from McElroy we follow-up have do Citi. question Christine a

Christine McElroy

Great.

a spread we and toward anticipate you wide versus term? to into that of longer sort while remaining of expect? is with XX the over And little I the and next year? thinking growth coming online X X in of widening a lease drivers the narrowing kind the $X Just the sort million commensurate narrowing QX. look the near-term tailwind NOI the space leases, John, growth next mentioned, is next trajectory spread months. there quarters in much as about of think, of to the for you of that commencement rent of then same-store of How a NOI the and executed Or further forward Would you

Heath Fear

XX% come So XX% another to this going will XXXX. first the and half that's come year in of on of online Christy,

should you fairly next decline three that rapidly over quarters. of spread So the see the course

Christine McElroy

then just that by taxes Was follow-up sort recovery a discussion. of part, in rate kind like the drove on And decline a the that? real in in there QX. growth was It same-store helped one-time easy Okay. Or year-over-year estate ratio a looks wondering comp about about of fixed there? the there? tailwind Floris' a question I'm to the this there but is talked on -- about in just you And perhaps move CAM, is rate longer recovery the taxes. What

Heath Fear

the was ratio just So recovery higher in versus timing. really expense QX QX

QX some So we is think in --low the for into we're of XX, QX. expenses which budgeted I of why had rolled sort versus QX, XXs high

So yes, it. that's

Christine McElroy

Okay.

Okay. in that. was just know was a one-time recovery that Yes, there like if I or like tax something didn't the something

yes. then just -- Okay. And

the further you you look markets looking the back future? you about most in specifically? are changes as Just there the lastly, that as scale exit you looking any out target what What markets. out gaining geographically to in portfolio in gain other exited you're notably, you'd Hampshire, And portfolio the are talked Wisconsin. to within cull match Virginia on markets made of kind Are markets funding and You in scale XXXX, of targeting? New you

John Kite

I terms continued to think right a of probably of future narrowing I that little but be Yes. there say, will mean I that. in think now it's premature do exiting,

right minute. of, and just be to out Christy, So I couple be that we that with want there may markets this a get careful more

seeing. be, the importantly, want I that theme we far think, it's markets But to are benefit more we where continuing will we of think from what as as that

warmer, in in As undeniable I kind in what markets call the Vegas. these, said, States, Las United into of migration Texas, cheaper the southeastern we

good Lake. demographic Salt You've -- in we're seeing seen movement

and at there's southern but continue kind So opportunity southwestern of think to markets, we Vegas lot really, of for a there.

bought terms scope, Indy, though in we'll we of little a narrow to bit. we in scope the Midwestern just narrowing -- continue an asset even then And the

We assets couple of have a a of handful other in markets.

bolster try those southern from XX what couple exit and it to to western the that So U.S. likely kind and markets the yes, really we'll defining of in our we're is position of markets, a as XX in

Operator

Collin And comes from James. of Raymond our next question Mings

Collin Mings

as few go back want ago, of I just us a maybe just provide John, I you to left Focus, it opportunities? as on thoughts around are you look growth Actually, a venture Project your potential being the door update opportunities? open to as discussions. calls joint far to just can avenue know an it relates as but the you thoughts complete forward some what your to

John Kite

we're potential interested expanding platform. think joint I still venture of our the in

As I particularly mentioned in focused allocation. prudent capital capital very prudence, on the allocation and prepared we're remarks,

be capital, is have So around potential acquisition. of terms our opportunity that forward cost going of means current we any we type in that in thoughtful of to very JV what there. do would a And

lot a there that's is institutional looking think I of up, capital queued for opportunities.

sectors. you've And look, go other obviously, seen a ton into of money

growth but you at think of you occupancies, me, metrics, look at why seem me. people long was me, when the is which are when And particularly look I that's when just a talking opportunities really like to spreads, to our note NOI tremendous you it's it's at to our kind the our alarm bells going relative that, just good beginning be. retail to in look off. -- place little I tooth And to them here. the about of the open-air This space, to just sector, value, of a is Some I think be there's take

continue that will nothing imminently wouldn't interested in today, There's we we're discussions, have surprised. yes, and but potential. be So I to

Collin Mings

for front. one just acquisitions. update And follow-up on question that Okay. on to questions other clarify helpful a then me, and on just That's Todd's Christy's and

at contract Just moment? anything the else under

John Kite

We there after And dispos contract will we Houston. I what of do to a more can handful more certainly analyzing size. we're and can things. to in these that Raleigh. core we gem that and handful the The we that under of want But can we we nothing believe on in in just be we opportunities But do that do We acquisitions. We right on us. second, There's rebalancing a in Dallas. Nashville. that, we're example We acquired know markets do focused no. of Indy. here opportunity be on. is can a to can can handful talking do We maybe at in very go can but off-market be -- excellent do our in that a that But in. moderate Acquisition-wise, that an deal great acquire Salt skill will that I Lake. I can set a for where this as be that mentioned,

through So there's places get for we once this. us to focus

Operator

[Operator Instructions].

from from comes Capital Chris question Lucas next One Our Securities.

Christopher Lucas

of Just I a quick if could. follow-ups, couple

on you with that an sort Just give if there of them? rent agree great. Barn, would some the did you And us in Dress could be how to guys quarter? much, expected fourth Is exit

John Kite

Chris, year. I lot in keep think -- a Yes. like just agreed we to the the peers, of them the end to of we

gone that I year. the question, Tom X So we're of our only end think, tenants. current they we And and expect of we And the that they'll right in be assumptions answered have, through he unspoken now, are that. be after with then are kind will the that and when as for mentioned negotiating

size. the a mentioned, And as spaces in different he little are

them of X,XXX. X,XXX, them are are some Some of

different in have testament I right we a talks no is one -- about to But Toys But and Toys. now we deal So space, box think anymore. don't that's mean it a demand worked that. I depth we've the that really "in". not, this like the have of with Toys only the really than Nobody

you recognized the So bit. is our mean, my in little I of there in underlying off sector being, terms not strength spun tremendous in but kind of tenancy, personal opinion, a on I

Christopher Lucas

have contractual as the to is rate rate the you John. a sense annual embedded -- it on as the sits, okay, That's current embedded on then do that And growth growth is portfolio on what just portfolio?

John Kite

portfolio? which On

Christopher Lucas

The where store today. one What's will that exists next Basically, same for? that be for year.

John Kite

Yes, yes.

I think think, X.X% I -- it's around around it's XXX embedded.

Heath Fear

basis XXX points

Christopher Lucas

X.X?

John Kite

Yes.

Christopher Lucas

whole And right? that's portfolio, the

Heath Fear

Correct.

Christopher Lucas

looking quarter? it be Okay. is in G&A And we then fourth Project the should costs additional Focus, there for any to just as relates the

John Kite

Focus? to G&A costs related Project

Christopher Lucas

Project Focus, yes.

John Kite

No.

You and like, things that? mean commissions Or... to, like referring like

Christopher Lucas

deal markets when you like things and you've issues More to -- had No. if exited any with? had

John Kite

to that specific nothing There's point. this No. at

Operator

I any would to Kite session. to question-and-answer your closing remarks. now conclude for turn John does like conference this gentlemen, and the ladies back And over

John Kite

to to at Thank wanted Okay. and look you of many everybody you. just week next Well, I forward thank seeing NAREIT.

Operator

gentlemen, and for today's Thank conference you this call. concludes participating. Ladies

now may disconnect. You

Kite Realty Group Trust (KRG) 6 Nov 192019 Q3 Earnings call transcript