KRG - Earnings call 3 2023 | Kite Realty Group Trust

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Operator

Good day, and thank you for standing by. Welcome to the Third Quarter 2023 Kite Realty Group Trust Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to turn the call over to the Senior Vice President of Corporate Marketing and Communications, Mr. McCarthy. Bryan

Bryan McCarthy

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

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

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

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

call today with On Realty the me Group. Kite from

and Our Officer, Accounting and Buell; Vice Officer, Tom Executive Chief Officer, John President, Operating Vice Senior and Investor Capital Executive and President President Henshaw. and Chief Fear. Chairman Relations, Chief and McGowan; Heath Tyler Financial Dave Kite; Chief Officer, Markets President Vice Senior

will the I turn now over to John. call

John Kite

us exceptional sheet platform. demonstrated outset we've Thanks, in for KRG in late balance our another Bryan, strategically operating environment. any best-in-class thrive today. our XXXX, positioned of joining portfolio quarter Since Project across Focus and everyone, thanks, to of and the execution

FFO ABR intensity, blended a key of X our cash metrics: As peers result spreads in outpaced we've operational our and growth. growth,

unfold, of moving the forward Regardless KRG with few the how enviable next years confidence. in is position of

XXXX, grew third bad by results. driven of NOI compared overage our X.X% rent. by share lower period primarily same-property We growth, quarter our as in to the of and Turning generated FFO minimum $X.XX, per debt levels to rent same

assumption midpoint. details updated will midpoint. same guidance. at our NAREIT at us X.X% points, is guidance year-to-date our and quarterly We're property by around by Heath increasing the moving basis the allowing results X.X% from outperformance also more Our XXX to our give the FFO NOI growth increase $X.XX to

quarter for During our XX.X% capital. leases, and renewal number cash deals strong minimal spreads leases. million quarter, an is producing Notably, renewal signed XX.X%. KRG non-option feet, This comparable were blended representing incredibly on the the XXX for X.X square require approximately spreads new that third

a for the trailing on KRG for importantly, return all earned capital More XX% XX-month period. new leases

and and the In successful bumps leasing addition on CPI rent in volume capital, been protection. higher achieving return fixed to we've strong spreads

rent first of and new the non-option of annual X our greater our leases increases X% rent of a XXX tenants, are X.X% for and long-term XX% fixed the those XXXX, average our Redefining or annual leases protection. anchor for that is new Through CPI small portfolio quarters growth equal was bumps our which include average. and embedded fixed profile year-to-date than higher have renewal than points non-option XX% shop and priority. remains renewals The both basis to top

increase restaurants, sequential been demand beauty quarter, health shop Small in with users, robust by Last The evidenced been shop noted our we has quarter, demand fitness rate. concepts. medical recapturing by and our deals basis leverage has initiative past and our we leasing in space. in proactive And very XX the signed lease the small plan more as small successful shop very point being to diverse.

deals anchor quarter, Bath activity of lease additional Bath X with front, our the addressed our comparable our we the vast situation. total to box took & should Bed in of I'm with XX% Bath leases boxes. LOI negotiation. date, on due backward a negotiation Bed of and spreads. To addressed have X empty majority the our next exposure at X call. pleased signed an by Bed cash boxes earnings confident the flurry could On we rate This step in more we have be X But of a past not Beyond predictable we

among home furnishing, others. impressive partnering including wine discount retailers, with, we're more grocery, and goods tenants big anchor box is the even spirits, What's and variety of sporting

at XX next is space significant when drive tailwinds. commence growth our is has experiencing the value opportunity retail favorable opportunity XX a time For rent. organic months, KRG lease to and a to simple, open-air best is

consistent we've earnings minimize dilution to portfolio further funding strategy our top match in our our improve balance the been is transaction While while priority rock-solid intact. leasing, and keeping sheet

returns. the the transaction has tenancy sold We Plaza Prestonwood drive down existing been example. asset dispositions of in acquired Our activity is at an we Dallas. eclipsed in Dallas bought and merchandising a X efficiencies. in downside We Place of demand the sold asset Eastside Prestonwood highly the to MSA excess affluent, proceeds each pay but dominant to further We instantly suburb upgrade Reisterstown enhances The Conversely, operational Baltimore perfect strong, our and mix the used MSA. the ability year-to-date our debt. above-average assets, footprint. from determined risk the for Dallas property shows an asset's and desirable quality Place already Addison, we'll Texas, drive recently

the always with I year has next acumen and We and operational [ at look to several unparalleled be X many our the a call February past will We to series. made ] first in pride been over transformation with the real Florida. seeing of assets being you organization. X showcasing XX our investment forward in our team discussing Naples, the in community event estate-first ourselves of started KRG a years. We've

of for platform sector. operating the commitment. an Now in possessing while expanded and to balance continued you portfolio its one Thank we've sheets best dedication our implemented the onto a high-quality best-in-class team

call the turn Heath. I'll to now And

Heath Fear

another real fond In in good I'm spectacular KRG that good of that saying afternoon. to we this industry, happen pleased quarter. has to report Good things mind, estate. With are team produced

basis The and XX growth per property increase on point NOI outperformance of by $X.XX increase lower point a in property XX basis overage point basis. earned share quarterly a driven based a KRG basis was recoveries, net XXX due a QX, basis year-over-year X.X% rent, revenue. and rent minimum same in XXX debt bad increase of a in other to increase point on same FFO NAREIT For

of components of closely earned The basis. outperformance a per year-to-date the same X.X% themes. quarterly $X.XX our has KRG increased on NAREIT NOI tracked and year-over-year share by FFO Year-to-date, property

representing $X.XX our Beyond year no At basis and outperformance, $X.XX midpoint, the related Bath is certain full our are $X.XXX total raising the increase bad the midpoint, a rent transactional to XX at are while revenues of year NAREIT other Bed NOI of leases. share, to $X.XX a termination & to activity. full points range of additional associated updated We FFO property the attributable rejection noncash of guidance guidance same per no with $X.XXX for assumes the fees of further XXXX, debt to

pleased balance the we outlook of upgraded position result business report a that continue in based sheet. large S&P has rating to positive that from optimistic are operate I'm We stable, in strength part to our from will on to our this in balance us rating to a way amount XX security sheet We've a in the affords full commitment next of long XX to X years, that optionality. and maintaining upgrade our come in to months. a uncompromising a we BBB and are disproportionate and

excited We the strong relates it the and an bond abundance balance posture what continue our organization a proud sheet. future to the while of and progress as in efficient a of holds. anchored operating dedicated our KRG patient committed affords I'm to opportunistic for remain platform is as liquidity market, XXXX made, contemplate a and unsecured we've I'm maturities. we

Please Thank today. line you call remarks. the for open our the questions. Operator, for joining this concludes prepared

Operator

the of first line question Mailman Craig Citi. comes Our with from Instructions] [Operator

Craig Mailman

up you like you it Clearly, just to actually pretty and you versus is John, them. keep what and How done versus split said speed backfilling versus ultimately forma you'd got having like tenant tenant go stack I to backfills back, was your of quick of just boxes? did to able Bath were here. the right the be of And them want up? pro sounds original the obviously the right rents opportunity Bed kind here, going always on want kind how the single many mix feel the

John Kite

tracking past it's the Sure. would over to I premium about. in rents. XX% terms are talking in I rents been of say mean, a XX% we've as the probably range overall,

returns probably decisions capital, robust but smart is thought business doing been to spread. I maintaining to of important just around terms assimilate the making able we tenants continue been more timing look, discipline we're the still which as than with. on quickly strong think get We we're we've -- it's And how around the the very in as roster,

Craig. do So you no to change want there, real add Tom, anything?

Thomas McGowan

Yes.

we I Bath, on we that, think a XX boxes at and now, we're simple LOIs. negotiating negotiating that and inside have Bed X XX negotiating leases way with leases right numbers is of of X on And looking LOIs. have negotiating nice

at see can in we reality, you activity look it. front. But there's So that on tremendous

boxes. that. a XX we get of, and we're We sure is focused that's making simply really what have care all of subset taken those on that's vacant anchor And

continue we're the of today, about talking several as go be to you those that to and we to we're end as year. through to down bang boxes through work just numbers these on going So we're the going

So our we've we're very progress encouraged and what on accomplished. all

Craig Mailman

the And in you of kind what you have of be about those you maturities just talk relative of coupon P&L? legacy some RPAI GAAP you touched if you here. quickly those what's debt and kind on then rolling. it RPAI I opportunities what what purchase 'XX some had kind Great. running have debt GAAP ultimate be? accounting maybe guys and the the of the evaluating the of like impact but where kind through could Heath, know I 'XX don't impact issues to or handy, believe in market of may cash And Could look impact

Heath Fear

Sure. Thanks, Craig.

own $X.XX we And RPAI out of and then last sort debt at the the take So impact, and that here paying off maturities debt the that cash is from time on retiring based XXX in we call the we around XXXX. early? you quarter, out it listen, noncash we're into timing, can your on terms Do make in next discussed assumptions X.XX%. The do the it's take late? of impact

on currently, indicative rates somewhere so XX-year X%. now right around are deal a And

negative noncash And more it's $X.XX on The some on the arbitrage, obviously, impact into it XXXX. and $X.XX. $X.XX will between will somewhere rate be call But it earlier, on a yes, timing. the on refinancing obviously, So dependent again, the... then so negative very arbitrage into interest be But there basis, depending XXXX.

Craig Mailman

expense -- as run debt at the million you of gap. million that? interest if at looked rate predominantly $X differential? your million there versus Is $XX year just total else That is RPAI to at or interest million Or that I X rate, $XX through And $XX like anything $XX get million. all Okay. looking running just think I

Heath Fear

yes. Yes, predominantly,

Craig Mailman

Okay. And then that Did guys same-store FFO just one last adjustments have lease impacted you any below-market quick this one. quarter?

John Kite

Yes.

was meant same-store. like it not think FFO, [indiscernible] you I

Heath Fear

impacted but same-store not Beyond basis, on FFO & We $X Bed from rejections Bath on have an million about quarter the a in basis.

Operator

Our next the Lizzy Doykan from of line Bank of comes America. with question

Elizabeth Yang Doykan

the around that closed color I during was quarter, dispositions more hoping to pricing? on just the get some particularly

John Kite

look, kind believe bit During our a yes, think that the talked I I didn't the assets quarter, we of selling, long-term mean, goals. meet we little fact the about we were

mean, I said, being the pricing that attractive. was So pretty

So that I all you XXXX the assets look assets high the versus the range. would like in just we disposed, the of quarter, X% be we've in so would disposed say total if 'XX the at cap

So really we've aren't people lot things dispose. on a going is. -- just that well Again, the IRR their pretty of looking potential cap at that necessarily rates, done what they're pricing in is not

as of some opportunity some So well. had lease-up these

Elizabeth Yang Doykan

increasingly recent And become power agnostic of centers like Adidas, Scott, your most center in slides and format. the Okay. Kendra in anchors details opening to we're just seeing definitely Sephora one tenants deck

just So how not this in in so the on terms like space what typical to typical type, power is might their of on the to of and curious wanting that impact open lease? pricing is format tenants

John Kite

-- they have cost the of through that working ones of Tom operate I'll tenants the that in real estate, jump center. kind say with. than such an I as centers have we're of speaking, that believe you Let are me in and is that would in would to coming power mentioned, higher really function generally just and too. of the open-air carries pricing mean shopping tenant and we out malls macro or a can we I start the that regardless

from of gives But excellent price our to us opportunities to plenty opportunity effectively. So the we see drive spreads, results. still it certainly, can as see it you

Tom, So want you give any but to -- if color.

Thomas McGowan

Yes. few mean, tenants have that in a category. we I quite

Aritzia, the it, about RE, list on Nike, think Athleta, and goes and on. you If

drive rents able are to we without So question.

generate tenants welcome of our little those we sure. need you addition lineup number type and looking bit inside all been strong been what tenant when this than we return, on shopping a typically with and would strong for of a we tenant, type the what ultimately elevated leasing spreads. have deal to counts our for a they've tenant allowance to successful But Sometimes see maybe what centers. pay getting we're is differently But

Elizabeth Yang Doykan

the was Okay. on full year, should And or expect And year reserve to that how a we XX the lowered? debt as rate? compare for confirm that reaffirmed assumption does that's for bad the to basis points, normal run what

Heath Fear

Yes.

XX fourth typical between it's basis entire of quarter. that And you XXX for run XX rate XX and basis tell for the is revenues but again, points. So a it's the somewhere year, points points basis I'd

is XX So last for of basis something number next number. the we XXX But think only But in quarter, year. And bad XX basis points basis running question, quarter, debt third points bad below first when to year. for typical debt XX full points. as are into your the debt looking believe a this of basis part of our so points about based blended, now bad normalized like total blended the was year, I our on you're year XX the

Operator

comes question with next the line Our of Sandler. from Connor Piper Mitchell

Connor Mitchell

So process has pretty thinking just approval municipal about slow. been the COVID,

a of from while. Some home are employees still the working for

line it's there guess, other push been that any conversations Are that? then just are still And really bit? kind in it still opening on geographies the is. on markets process still? and Or slower a of first, going? or has little that few a up I up others is for how change certain to you locations speed or And to sped So guys have retailers any you're adjusted along. there those the follow-ups time have them waiting are than Maybe for

John Kite

line we that Well, that as been in market years. but the particular the approval approvals what quite far in our process, that get there job. to at I really it. hard, the last do, to, as that's we're the never change hasn't mean we easy lot several successful a of over It's and time any kind of and think like we'd That's push very on I really

anything, get timing of as mean, if terms as they're this In trying with in environment. possible fast I tenants. open as to

And it's a we to fast we tenants possible. getting And everything so to can can open. you where get open that try just to as situation we do not as have create realize

they'll that time underestimate to the to also tenants deal the it I year environment where have open, the people You mean, restrictions which recognizes the so with of store who retailer perhaps overall, think I early certain in to even But have always opening is we than a an quarter that that, has. that are us. on impact a them, a is tremendous more benefit

to we to as can. I as So trying much going possibly think we're that push keep

Thomas McGowan

of point Maxx, in front Five last we're we Yes. help to of deals off is to And lot one T.J. a now. right getting the key we do other expedite tenant taking the that is get along another get week, where push customer, and with that's doing to able tomorrow to of thing were which being Below,

Connor Mitchell

the thinking for space about competition then available color. the And then and growing I appreciate demand. the Okay.

of about the kind of In to the terms backtrack maybe friendly around some put you for that, to landlord terms. that -- tenants terms friendly ability thinking and guys

with You then talked to or just overall, some all that. bit the is competition for more accelerate a upside way the maybe And a recapture shop there little piece small space? mark-to-market the about of of

John Kite

the competition space for I mean, look, mean, I robust. is

at takes of you and the process that's to all this what to some what try certainly, results what So see parties the we're both And do the doing. we're in be But time lease to best of we're now really recognizing sense and very of able economics, I the is retailers the get drive. to can customers, can, but engaged have the our other successful. we with economics in possible that to that partners in, and beyond you players' certainly, think results right have look our we're

So that the continues least demand at to to that's it's favorable us for right now, for term. quite a and certainly supply medium process. no But trend question the and be it look that is there's going

continue will we and what we do. that lean So to into do

Operator

of Wells comes the Dori question with Securities. line next Our Fargo Kesten from

Dori Kesten

A little bit of follow-up. a

good in rent push? last. Are year you versus getting success that leases X% in resistance fixed any bumps this for your You've over markets had in new seeing any

John Kite

I'm -- Dori, a you particular say sorry, Did did resistance you from market in market a or from just -- general?

Dori Kesten

Well, a in there in market? general, if any, it of just kind is and is certain

John Kite

retailers -- has It's think merits this is want to way. that terms be broad They don't and don't the at properties. lot want We we deal individual that pushback, I the But market-driven. a comes the a owner us think center that high-quality in -- And to of best I like They space. is there's these shopping amount we can a customer. necessarily a it's aware own with different. individual really are an to down so possible partner be try partner -- each space. in to limited look into of its puts No, as again, each that certainly look, back

think that's I So helpful.

majority terms we've really, the now of in do segments, math X% this In side at on in of bumps. year, able that particular, the market I are we're of terms you if right and look the excess shop in small of of to just of, amount the business, the frankly what been the again, deals great mean, seeing

more back to I going this think you becoming sure, property, the next changed. take to And pay But roll XX% space I for year. to only to is has game that have So time good per your Obviously, dividends. the time, but would market. years, feed the market. I to really over you But over This when think becoming through. of say begin X that's and it's will the more and own more more XX%

Dori Kesten

some just monetization And their Carillon, likelihood are any developing Loudoun, of provide potential your Okay. development updates then there around parts can you or you that opportunities, of on on One sheet? balance that future of

Thomas McGowan

Sure.

we've active and along time which all, very on limited moving well development is of had pipeline, First very along a budget.

On one, underwriting within the of here a with and of process that. a with that first strong Annapolis. apartments, opportunities, XXX is the Carmel, working the We're future several very and there's understand plan we'll to Crossing, ongoing on trying suburb Hamilton an and start particulars that

just which very land and to we're one the and parcel, that's that. a approach the one Carillon, the have that most One the is Loudoun Washington, terms is east taking in of One something best the area. measured of The to counties and do in XX-acre a timing one and in is Another is city which the utilization, that great growth to best determine of D.C. Loudoun, the momentum we on trying

are offer and move of were these more approach that's on working for project. we them. something we color particular plan 'XX, probably that as more extremely all we being measured how So of but terms a growth in of could And that we into conservative

John Kite

let me just add, the your specific -- question. to I to to Dori, think, be

in of is said on. we're and that. In the in as leased the medical Carillon, to office past, the it terms objective our that's building we're we process path sold get that and And of the up in finishing

that but we So long on we don't to do want intend the maximize value. term, owning

different than residual at there. land One it there said, Loudoun. we're a as still some Tom is is situation So the through And going lease-up

of potentially to it whereas capital And returns would not partner with the that. put developers vis-a-vis to One that's the Loudoun capital or other significant contributions, outright look and but so continuing that, either invest land monetize there, over into quality into to looking new time, we

Operator

from is question next Wesley with our Golladay Baird. And

Wesley Golladay

space seasonal overage the a had portfolio? just of had advantage the some sales Or in taking vacant strong for this you some You throughout tenants? it rent. Was is nice spike

John Kite

rent previous No, talked been higher Wes, materially years. it's we've about just continued overage as has the than In really in in strong past. last it sales, been year, the has

not that in additional material. et sure but little see So tenants Halloween it's I'm we'll continue from quarter, a to cetera, like see growth. short-term we the just rent probably current stores,

Wesley Golladay

potential $X.XX the the Should annual an ratably a what number? noncash then do then about do impact? the next balance that for that upgrade And on And you talk follow-up question for year? can debt on a Is Was Okay. sheet. spreads? rating through that can we you

Heath Fear

reverse. in it answer I'll Yes,

with debt, XX point Again, probably on proposition. is to gets and XX So hopeful well upgraded to think good we BBB, the a I the them. months had have in with said discussions outlook full of obviously a as progress Moody's change to basis just we're some to trying X that XX make

we that that spread And in a maybe see And change ratings June full terms a from we're, XX point a again, XXXX. basis that's optimistic well. them. So in happening of get upgrade, if XX deduction then as that's we'll to in of noncash,

forward wouldn't I to that the roll following And years. so

into So it's just a $X.XX year. next hit

John Kite

year, I believe And X twice a guys? it's quarters? in that right,

Unknown Executive

that's no, No, one. different the

Wesley Golladay

think sticking talked that So swap you about the swap, though, with I the though, John.

And so you do year, swap [indiscernible] get right? next a

John Kite

Yes. That was...

Heath Fear

that was question. thought I your

keep years. through for will another running that X Now

benefit So before that that, to, until transaction a do attach to -- talked that but actually about a happens is it twice about swap we year. what's we odd and that, it

benefit you see see you second sorry, in quarter. that So the in the quarter, -- and third in first I'm benefit the that

Operator

[Operator Mr. comes Mueller from of question next Instructions]. the JPMorgan. Michael line Our from Mueller.

Michael Mueller

Yes.

decision sounds you and the leasing good. know color picture would I item trends on quarters? next One, ones. down think quick cause fee be second Any what quick the the a X But the That's would one. it question. is is well, macro just going that slow first making? over numbers retailers like very So to demand the do then And income few

John Kite

-- start first. first take I'll what one by any me But you income did trend? the on with mean color the Let

Michael Mueller

Fee income, fee income.

John Kite

question? first missed of part I'm -- the terms that was Now I what I think let's -- we'll in right. go hit Look, of all -- lost. Fee backwards. income, the first

Michael Mueller

trigger -- good. the was been decision-making. picture environment basically, is, that slow know I retailers pretty Yes, demand has [indiscernible] the macro it think But what the you do

John Kite

environment right now. a it's think -- Yes, look, certainly good we're in I

kind there cycles. so we've have longer been of decisions, decisions has when picture And probably over in I these economy. know of because the supply that the us that in the demand a this making of talked the lack on a rate look out such and many past, puts an where run a today position think we as years, Michael, is they're terms XX-month than normal about forward are the you longer little retailers in these than supply

I a So we've a be turn in pretty people buoyant. the have down to significantly, X.X% would of to seen, rate because the it think pretty unemployment be backdrop to negatively material especially get slow as to as continues all you consumer --

at of amount there supply their us for platforms, in I a are that's the and continue a I a that and of retail investing a good would something else think that very So retailers high-quality pretty bit. kind that to amount But it look spot the backdrop geopolitically, have believe be or economic we're puts you whatever, and in spot, a out it when of of in should surprise. negative would be good

Heath Fear

be And incomes on head this income are then, the that and basically down is Mike, fee year Crossing as The to the going project, from Hamilton XXXX. we one into fee winding question. from

there However, to potential some for projects commence. are other

what XXXX, and for don't income we have more about will February on into that our our fee talk call. perfect be So we'll visibility

Operator

Tsai Jefferies. line Our of next with question from the Linda comes

Linda Yu Tsai

process? wondering some Just bad to tenants mind. bps. you the debt had on conservatism? if bottoms-up back Just forecasting going reflect based higher-than-average Or Does XX is in that to XXX a specific it on

Heath Fear

just basis history. is XX think I listen, to XXX Linda, points the

typically we land, where it where bad So lands. look back when and say, does debt typically that's

year, not bottoms-up number earnings budgeting and for you then forecasting year when of full sort that debt bad that. terms analysis we you into more a points think like this on basis start we bad a In of specific do of February we're and do that conservative be course, the think how you of something into then both But for we're season. I assumptions that start we going assumptions season And we're we'll at going can give blended that's our year, next we experiencing every year, XX experience. our than guidance general do into probably go assured that sort give when going -- will basically it, we will based our our to to a number assumption. we in yes, go some the with give and we'll debt tell then

a in our more normalized we'll be assume So to on going February, but more number again, that we're assumption. talk

John Kite

obviously, that's a we the mean trying go that. we're through monthly about. what normalization at do, month, our when we're this -- analysis But we is do Linda, and in through I out It's when look do looking really the just, every we we doing some of and bottoms-up seems saying go why would beginning that, receivables But reserves, we're to future at that's really bps. second, at fourth have that as conservative. likely a to bps. to, that you've got the XXX at point, we're this point, or sit quarter at not of that would some XX here And -- but normal why it's be that we normalize, the we very XX that's and

Linda Yu Tsai

you year-to-date, surprised in in just and kind Yes, historical it strength the [indiscernible] given bad environment as to just overall environment, would number number of has low the be a bit expect is that conservative -- stronger? that really came as because debt that the

John Kite

year don't the because yes, think, Yes. we X.XX Linda, surprised? surprised XXX we -- were we started I were out Clearly, at bps. know, I

terms bad was debt. think we And was it in said, collections if nothing even almost prior were I of then as surprised. quarter, And had mean, it you that -- we happen. look So we this essentially period at I to continue

environment, I out, and then depend line same-store and it's the debt item. perspective. to collections add creating I prior looking the to what's And who bad think mean, really the when knows. going how on So next brings from you year unfolds current that's that a period economy certainly what But

which this assuming for that could that the right time be would kind just of normalizes. knows? point we're that to so speak. that to is, But numbers of mean, reach way in at who think that hard going just we're purposes continue It's I assuming or it normalization we're but it to say to now, great, the return

Linda Yu Tsai

And What versus leasing in like you one then look 'XX think just follow-up. in do 'XX? capital will

John Kite

the I at where look our in we've think quarters trailing put if of last numbers over you sup. couple track, the been you as and we

really have to work can type renewals and a i.e., quarter, the in less in a there's up tenants up, You we have that of cost down. of bring the new numbers anchor if going reflection doing the is do more leases ton if that done number we has particular in space, that's that's of the gone a following and of see that quarter, amount handful a significant a coming we're deals, of that number up gone of

volatile So the respect. number in is a little that

about But little of a basis, you it expensive X was, a macro certainly, it more kind than it's today on months say, ago. when think

are returns on demand. However, because the capital even higher the of

our backfilling we're just and Tom we're the long And those we're returns the return or with people the It's pointed out, these we're really different as of the we're happy with So not quality is $XX great. that that with capital, of that's the the dealing are getting are on happy what's getting. extremely boxes as a that whether game. returns, number retailers, foot. really foot as It's a $XX type

darn good pretty So a it's now. right situation

Heath Fear

Linda, just that. specific I'll numbers to And, put some

track. So this we're said to going on around $XXX million and year we we're and next spend year,

next in So think total capital leasing million about year. for $XXX

John Kite

Yes.

if good LC, run TI ran yes, rate. rate you and if you this in pretty it's -- So quarter's

Operator

of the Todd comes KeyBanc Capital question next with Thomas Our from line Markets.

Todd Thomas

growth is bit accelerate more We've of some to additional quarter. where be in could the reported Are seen term? uptick put yield to efforts powder a rate an on comment of near can you like investment activity just for and what disposition mean, there's the Preston I pricing quarter, initial or I then of on in the the back, Place of the First, maybe surface in recently. in your heard you And a stepping acquisition the by dry work but seems that it asset? opportunity share cap REITs of a this little you general purposes seeing the number the bit for able been activity company's assets to

John Kite

mean, did dispositions said, mean, of the in talk about I in as Sure. you we were rates, terms what cap 'XX. I

rollover in people X.X% acquisition are of even IRR X% right we basis, kind think and they're the of on I maybe the But at more lot going think in. an looking that think deal, depending at a a of going is of X% would Dallas really, the to IRRs, kind really that higher cap we like looking now rates. at looked on as terms of rents Todd. we I and this generate. I the In the of IRR it think don't at can

for spin So and transaction. that into being around now CURB study, kind whatever, or conversation in the had your said, segues it to -- time haven't of example, that lot certainly of terms side other a activity transaction

what it that you was rates tell cap. notice at of looked or I asset will like cap I But is of the kind quarter did $XXX million a sales like X.X% there in mid-X%

there's go think as And and the year. But private are that where, we market into to probably are year it that and to the mean, finishing trading, happen rates. I -- and do strong, -- kind that the when indication which comes that a certainly, new looks good I I on not a product up, into the is I think goes a think like But market lot cap nice was good a product. looks things like show out starting is last yes, that's to stock we mark. of of just surprise a And you the between based me. a pretty mark disconnection that not pretty

Todd Thomas

following maybe you you there are disposition opportunities I are that prune where the you to a additional opportunities further? little Or advantage there for on So that, of bid? up portfolio private for could take bit market guess

John Kite

in -- I should mean XXXX. NAV of of with But strong capital, be recycling as we when lots other that various XXXX, price, we capital can the at this balance see very we not we the we very, of call, that is have low stock disconnection of certainly, I leverage, look said can think at as be the look in the like activity in at Heath one anticipating we the things balance forms. any and terms things looking said optionality. sheet with we And the will sheet, our in in versus we that one further very we're is

for have themselves X to we comes what believe act continue to to we've the that time position things that's past worked with wait can if we years present great of opportunity. associated the opportunity over it, because that that kind for or So in be offensive of being if

Todd Thomas

follow-up that. about that year quick XQ commentary is I likely overage flattish was last XQ higher XQ just year? last question, we to trending than then maybe similar a overage we retail a rent have than and And amount assuming above guess, Should the then relatively of $XXX,XXX. into XQ been better you assume last perhaps on there, sales rent environment, be by 'XX? Okay. should assume But mentioned And a sales

Heath Fear

[indiscernible] experienced. modeling fourth like fourth an the overage quarter. been is ever Yes, Todd, we've year. It's flattish last highest rent But the said, for the we're John rent incredible quarter to overage has us this

So incredibly -- and also it's broad-based.

So it's you're themes the the the rent, what main when to are diversity thing. is overage looking just around say

really, with us pleased outperform quarter. And fourth area to the a good hopefully, for So really that's in results. those

Operator

turn I the our John like session. Kite Mr. call back comments. this And would his concludes to Q&A closing with to

John Kite

again, NAREIT. and today, hopefully Well, everyone for for many Thanks. at seeing you us forward joining look to of you thank

Operator

all you for participating. Thank

now may You disconnect.

Kite Realty Group Trust (KRG) 31 Oct 232023 Q3 Earnings call transcript