KRG - Earnings call 4 2023 | Kite Realty Group Trust

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Operator

Good day, and welcome to the Q4 2023 Kite Realty Group Trust Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to John Kite, Chairman and CEO.

You may begin.

Bryan McCarthy

And this is Bryan McCarthy, here to kick it off. afternoon, good and you, everyone. Thank Realty Welcome quarter call. fourth to Kite earnings Group's

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

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

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

Realty call Investor our John the Dave Officer, with Relations, President Operating Vice On and me and Senior Officer, and today Chief Buell; President and Officer, Officer, Vice from President, and Kite Heath Executive Chief Capital and McGowan; Markets Senior Executive Tyler President Group, Accounting Chief Tom Vice Chief Chairman Henshaw. Kite; Financial Fear;

I'll now over call John. to turn the

John Kite

joining you, Thanks, for Bryan, thank today. and everyone,

and what our position We course plan looking of of a and time through for are will we understandably strength. from some and of at the XXXX proud in key Heath we've guidance our spend walk I'll over continue operate our results and of XXXX, back my you the will to details accomplishments XXXX XXXX XXXX. accomplished action

to grew and beginning and share we X.X% X.X%. of FFO At FFO at XXXX, of $X.XX with by guided per the growth same-store the NAREIT delivered we of $X.XX midpoint per share same-store of NAREIT

rent XX.X%. to in fact, we square Our blended feet million lease at And spreads in returns. leased primary space of focus 'XX cash attractive was X.X risk-adjusted at

all-time blended approximately was for and Restoration Foot return represented square of XX%, X.X on leased fourth an Pop million invested a high Foods, XXXX Elm to Golf Five Sierra, leasing a Below, Hardware cash of Joe's, name well-capitalized XX spread XX.X% Whole of volume HomeSense, Galaxy, a the boxes representing to new few. New shelf, PGA Trader XXX,XXX feet quarter capital in square including We Wine, feet and in leasing Locker, West and tenants, high-quality Total Superstore, KRG. with

to improved in the leverage our the $X.X to one of Our EBITDA, liquidity net remains sector billion. lowest X.Xx at and debt

construction annualized representing in and XXX XXXX. tenants, development NOI opened and of million $XX delivered teams Our

continue pushing embedded the small than In the bumps average. which We and primarily renewal bumps rent shop to points fixed basis success basis was leases for XXX have higher shop rent were in nonoption shops. XXXX, XX new points, in-place higher

profile take growth long-term entire the but we portfolio. time, for elevating remain our trajectory the Improving will growth focused on

from them space growth poorly and that or capitalized and higher superior recaptured duly sheets, tenants have replace offerings have lower We balance growth. with better tenants

in tenant mentioned spend again, once kept we've time completed capital. return our time the measure merchandising, elevating development in at rent our success for the same and our while quality, activity. As time preparing and terms We leasing we've we on of pipeline growth check, leasing activation

a in for We S&P, resulting BBB XX relentlessly months. we from ratings advocated a upgrade expect in upgrade to next an into will materialize the outlook change full which

Place a Presto million. approximately Dallas for million generating mid-X noncore purchased cap, in we XXXX, During assets proceeds. for $XX in a sold for We Wood cap X X $XXX high MSA the

XXX X rates acquisitions. dispositions on blended the years, on have tighter approximately past the the Over than rate cap been points cap basis

for XXXX, in success XXXX similar. be our on that plan it follows Based very our would action

embedded up achieving vacancy lease and higher mix. growth the while our We merchandising will aggressively enhancing

in the increased pipeline we XXXX. signed-not-open to XX% expect commence and NOI Our million, $XX to of

openings. rapid pace of of pipeline half Over the against we reflecting elevated, remain expect the new to lease execution first XXXX, the of tenant SNL velocity the

million significant rates detailed account or additional of NOI. for potential prices capitalization the to the share taking and note price we based any of our the X a $XX investors of not at current lease-up does investor It's Page page that value various this compelling opportunity entitled On for bank. our into signed-not-open important the on account update, land

We in X next expect free while $XXX generating flow. still on to the cash million years leasing over capital spend

leasing emphasized implications we've this in is returns. associated use the absolute capital the on relates as down activity our space cash As it numerous capital to elevated flow AFFO, and the spend. and occasions, recognizing environment best and hands risk-adjusted worth It's leasing to of leverage longer-term due

dividend back At and from dramatic leasing the a in at new the leasing in the a begins time, plus increase Looking peak, earnings normalize AFFO our our XXXX. all same to incremental resulting meaningful model, spend activity half share. rent growth towards of to begins per

dipped levels to excess the year. of available in $XXX a significantly level activities leverage for up a well cash investing and million Our ramps

keep in more development we'll provide on of detail our spend each when XXXX, check During opportunities our and appropriate.

our pressure metrics. with match expect more will exiting We that into proceeds credit of acquisitions goal the pursuit ratings be our with target of also the from We'll relocating rating on agencies markets. that or funded reflect in one keep NOI asset dispositions markets and properties accurately the lower-growth

on plan for in an called investor Lastly, we're embarking 'XX. outreach

the subsequent at Washington, for the portfolio in our and Naples of Dallas, goal of many events organization. and entire at first Vegas. quality Our is D.C. in seeing week depth look investors to our to high better the talent next Las you and across forward We understand of the event

your of operational expectations produced continued dedication exceed year KRG commitment. in for outperformance Thanks and again closing, in In we XXXX time and to and XXXX. another intend

the turn over Heath. I'll to call

Heath Fear

John. you, Thank

earned quarter fourth FFO share of share per For the full year. XXXX, of $X.XX the $X.XX and NAREIT KRG per for

X.X% by in rent increase in basis and point XXX by increase same-property driven minimum net quarter, recoveries. point primarily and the a basis During grew XXX NOI

contributors rent NOI debt. being same was X.X% and rent, high property higher bad primary For with full growth the lower year, overage minimum all-time and

the $X.XX items, the XXXX is impact pool and same termination $X.XX As outside share. to outperformance increase to same-property properties of is John activity. our the the exceeded $X.XX noncash net attributable to FFO remaining guidance property fees operational transactional $X.XX in original net by mentioned, of we related with per our pool, related

We following growth guidance assumptions: X% the year per our $X.XX a XX NAREIT of basis NOI guidance range range debt of FFO to to revenues. of establishing total are of $X points and X% same-property full XXX bad share XXXX in to of assumption included

the points quarter at the to set The of at important would we our of On fourth a set basis of XXXX November our X investor bridge theater NOI during of total guidance XXXX a Beyond. that, forth lease net NAREIT tenant company our the property X.X%. XXX trends & year. Page to in same-property our of points a XX but at presentation, experienced year-over-year is large and bad growth basis in X historically to higher renew failure assumption. the have revenue, XXX basis its XXXX of while Bath items: of growth FFO Bed of quantify guidance impact been note assumption for following bad bankruptcy It's debt our for same the last And of level midpoint the The revenues. points assumption low impact debt XXXX, of

Taking XX.X%, dividend be guidance, from anticipated that same-property anticipated noting FFO XXXX growth a was annualized our growth our our X.X%. the be and through XXXX to XXXX of midpoint our through is NOI longer-term average to XXXX, CAGR it's is CAGR from Also, XX.X%. view worth on

Our end target. lower remains of our net long-term debt-to-EBITDA stands the at X.Xx, at which

KRG of Subsequent the above remains quarter returned KRG debt $XXX and service [ year Xx, by tight X.X%. reintroducing have liquidity. bill. we million We $X.X debt was issuance issuing our over oversubscribed The to the successfully coverage were and to ] Additionally, market very community win not end, more a we public bond at spent accident. navigated fact ratio that a by than fixed XX-year income XXx billion to a

opportunity further become pleased we more ratings spread compression see with in and improve. an While are liquid for bonds as execution we very our demand, the our

when on the Proceeds from be In debt the end our they reflective of June. fixed will of XXXX rerating for in state are of all to earning Thank the credit come income meantime, at of account satisfy to the levels cost have that used more the debt. the proceeds you the yield invested our excess to interest maturities the due of bond community maturing metrics. in we debt effectively our of

showcasing in first and the website. date event we Naples X X 'XX next The look As to Dallas, of D.C. our on our installments our Las are and mentioned, John portfolio next at week. available forward Vegas

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

Operator

question first comes Todd Our Instructions] Markets. [Operator Capital with KeyBanc from Thomas

Todd Thomas

questions. A couple of

of give Center, update that and the space, you in the at just which could which closed to floor plans $X.XX related First, sort us a talk third theater speak backfill I and you year. City about think on that late just last just it's Can space an backfill if opportunity you guidance, to the about included that. to

Thomas McGowan

is This Tom. Todd. Sure,

bring process potential in embarked X to to we of So a on X users. trying

we're calls very on now broken have aggressively, yesterday. into We that one that focusing with had them down

our to the aggressively. is So lease around of based the space, we of them to the end executed by be an the commence to should a hope quarter. upon in try condition first And with in bring position very

moved through we manner. expeditious So have process that in an

of we to by be the end So March. go should ready

Todd Thomas

assume entirety? the does vacant assume throughout basically Okay. impact, that year the in commencement space that Heath, Or the its any is $X.XX the during is And year?

Heath Fear

Todd. that is space assumes That vacant the

guidance. incremental is So on any our this rent year that Tom be can turn going to to

Todd Thomas

it expense was on Okay. How leases in same-store XX%. then fixed recovery that impact And terms increased provisions. above CAM in transition I net efforts I we forward? forecast. moving assumed quarter, with know and recovery think in about the to expense year-over-year of focused the from the rate recoveries tenants what's guess, the sign new you rate should

Heath Fear

Yes.

quarter. of a is little period. margin estate related on was of prior Part tax estate it it recovery to we a did better those real numbers, tax NOI higher refund assessment this the got challenges. ratio We've was that were Todd, both and a real part of the timing, So

of and fixed signing of more So this we in normalizing as sometimes approaching right more you people that tell that up to Those to I in ratio in now, giving sort as time. going XXs our gift continue to XX%. recovery crawl the going on more high- get CAM. this again, over leases, we on numbers the is NOI mid- be fixed and we're But keeps in margins and the CAM the are the XXs would start up again,

Operator

from Our Floris comes next Dijkum with Compass Van question Point.

Floris Gerbrand van Dijkum

well. is KRG occurred conservatism love and over your that always people is would the the a alluded gather as of hear growth to you your Where sometimes, he a sort -- Maybe I alluded of in going can scare it Heath but quality, does that transformation terms are portfolio in you of And biggest which what that has bit it, good, significant balance years. in guidance, it and maybe, have of both at view, call seen? think to your John for X, the bit on forward? sheet mean do to terms in what I transformational of thoughts that X there John, last initial I think, what little the sort changes

John Kite

if our at presentation, of of a occurred that at look portfolio there at Well, the growth category. pretty that #X FFO peers mean the blended our look the few over growth, in really of you that kind at our peers that's I since to of pages actually, we've bigger them of think metrics against rent that's improvement occurred We've the each quality Page at XXXX you and I spreads XXXX. And investor you in look time the the in of -- and our ABR since outperformed. handful -- X just it's which there's CAGR easy been cash shows select important. you and Floris, a look look there's is X, you And period when are

I transformation happened it? intro question and guidance, very the terms in February. -- and of been quickly the maybe it's has -- to massive, your So that people is it's what understand

year. early very it's the So in

the prepared that's mathematics. This is is But lot time have able haven't in people And laid we it. just and a we And really here we this because variable, them. upside to maybe transition. That's how upside, see people approach of the just I the that more remarks, a even portfolio substantial. very in out quickly been the the And metric every is -- there upside getting again, and happened together focus as there's We so at the in we've so, quality understand thing and on, know some their is other get to ground. you've maybe on the out assets. it's spent look to

quality not it's much lower rates. just talking cap the think you these of It's about. relative what the multiples with So I to assets, peers understand assets but compared I'm higher and as

probably could hour are that improved It's So people question the our it's a dramatically, is reality dramatically improved about, talk portfolio have but this for has dramatically. the you an and changed to who plan. executing I

way story the long it's metrics better clear. it short, make So and just think I

Floris Gerbrand van Dijkum

Maybe, of touch big Maybe your I in couple those on you things, demands presumably you use. have some had a sites? some are if also Heath, on the there non-income-producing I can looking know land think from what's us seeing have you you a different lands. maybe portfolio of of then if you back a that investors that in other entitled on pocket. -- to -- California you that's update to And happening you're maybe can -- theater in that

John Kite

Floris, it's John.

when significant goes clear Page that our we're on think, real I is the again, land to investor look you, understand, page market bank there the X. quick, it we doing want page have that be presentation what that important very to back which NAV that turning start through an Let the value at me I go has entitled right now. -- land. and it's I'm because though that

we're very, actively doesn't kind on we're we're that been engaged spending of It leasing that working handicapping in we that, CapEx That not at light the the that next prices. high having pretty program. being that mean not stock to in doesn't were that development while how returns we're program clear upside. level in we're not said, going be very it And million it. see the in You'll of about including be $XXX we've mean that

to give anything I to the we what to... that want of wanted again, you I prepare dug doing Tom, particularly we're before think just another So But value. you very basis and that that misunderstood into area to but specific it's sense is -- create do in

Thomas McGowan

Yes.

that, look you and also and then if in at Lakewood list. Legacy So to take are supplement, identified are there's X that addition our our a properties that have we on

we JVs, acres a a of you be different different maybe have properties, about styles that take if they So look developed be approaches and would X sale developed, leases. a in ground to form with and those at are of able XX potential

and there, accounts office, So we're a thoughtful can being if take that's to be generation be best move opportunities of that that. you big into the cetera, very way position. as at lot be we et as XXs to we're a moving But the do offers of to look done forward, level those apartment a going retail, moving goal next to income in it an

Floris Gerbrand van Dijkum

movie And the theater in California?

Thomas McGowan

Yes.

So movie of bit east little in the California, Ontario, theater a it's on L.A.

and to put the ultimately We the position process rezoning in a rezoning property objective that developers. forward multifamily are moving sell process to with is to various of a in

in we're at housing. So great area making multifamily of starved could, XXX it's for an But that generate progress is situation units that there. a that very much it point, type some

John Kite

the I But be a process. growth. value up It's an we another Loudoun but are that, to long and operating about thing got under creation we just Floris, bring imagine. that clear, the open potential economic to already One as the so is might in get is, and enormous, Ontario of is mean I project you units want X,XXX alone reason rezoned, and interest don't units today X,XXX it's have the

XX% spreads. of straight been the of have that on rent the of comes of that of leasing and is an kind about creation. it all getting thematic returns it think ahead terms XX% I couple we're capital part us But years -- up great we've and -- in great we So just majority the back next is value to incredible

So run going we'll all we day we're out because Eventually, that of will to lease it it long. up. do

this have we So down other opportunity the road.

So people it's understand important this I think that that again, continue. will

Operator

comes from question with next Our Citi. Mailman Craig

Craig Mailman

Center. City on Quickly

you As pointed for the headwinds I'm than of you of did in in the guys kind at presentation, going included end 'XX. that back that to the Was NAREIT. October had out

Heath Fear

That them. quoted. that hope it to with Craig, discussions the Heath. way. not we November. turn were failed they renew out didn't is our so Again, in And end get did this was that to to we them renew was they of going were and Craig, at -- just

left in didn't why in page the is which they November, it appear So at early of our end November.

Thomas McGowan

just And they decision units a close the decided where cost. that basic New to was area York that was multiple and

John Kite

if normally got square obviously, Craig, tenants $X.XX situation tenant, tenant it's very rent John. but we're large talk only this reason about The is impact. XX,XXX out. We where calling wouldn't you've feet, significant like obviously have you it about a it's here and X talking the and a X

by this I find aberration. and I think. said in know thing for the a the good have mean, have don't aberration. who actually didn't way, I hard I revenue. to it these like is to we a We slot to not is It's guys is them, So choice this earlier, major a good the make, good it's were Tom is choice. estate. And doing as think news market but real going rent significant this structure a an an be? is, metro work

feel an as is about It's It said, it very it. unique. what aberration. And we So it's I is. good

Craig Mailman

So sometime it use? stay that's to, maybe theater, and there's in -- that a could that potential talking alternative 'XX? that the is is tenant commence movie Or why it does you're it an

Thomas McGowan

operator. through And It is went a East an renovation. recent theater this Coast

items. projectors able store, and to to open So various terms you're some the in FF&E to of conversion down be

So rent we turn very able are on quickly. to going to this be

Operator

from with Alex Sandler. question comes next Piper Our Goldfarb

Alexander Goldfarb

X So questions.

agencies. rating the First,

all under the Looking well in -- different the X thresholds. the metrics Page on in you're well at within your disclosures,

rating agencies them. finally upgrade So clearly, got to bricks the

like they're for this kill like at Or cash just before where is the mean, the why? they retail, growth improvements. COVID, glacial balance the you've giving rating your now? they on you So feedback thinking pace, for going Amazon slow since everyone? sheet or what's keeping John, what's that's view focused Otherwise, death I them your flow still are is been of pace, agencies that is are right to holdup move

Heath Fear

don't size I X Alex. think it's fits all,

us it very them slow. in HX, to outlook. and them go ahead them entire for convince just through just S&P, being for going improvement finally give our to It's about rare So grade. We example, was an skip an

next full our the bricks same to told to into we So took their to us full the upgrade should That's around upgrade. XX upgrading a over a time plan they it outlook as mature stick their that months so to from long XX mature rating. more business the for in --

So about XX -- be that should again, in had that that, we from staff Moody's should change some months expect now changes.

So they in look your it grid, some retail, little a we sort very a look very our optimistic think temporary ultimately but of yes, he had He at there time. left. person, there can't you move between and it We will on and the discussions ratings But that doesn't [indiscernible] ratings we're person recent gotten peers compare worked well. Again, our you really drop promise. their was slow name point, right? in now a they're someone based And when against long them narrative you had probably outlook we've at to as of I and for got and any to new to a something there. we've sense, make

is -- a is So this not it's -- again, a consistent thing this it's whole journey. destination,

look once them if them. we're at to metrics, talking the be to everyone grades think next pushing we honestly, going because to solidly up area. that I start constantly the rating you BBB+ going our get at range, in we're we're for BBB/BAX And So

John Kite

ways, income oversubscribed. but have that. add, that's community I'd spread all should that beneficiary thing printed clearly, some a of only that, the that the not it in we the that why Alex, I but The is we're way fixed was In mean, were spread, sense XXx knew the saw we Yes. the been, good where

over about deal, ton accident. And in something world in think others thing important deal the the it's is of absolutely been been great. people at And was the lot market, we we that the capital of didn't, in We time most our here opportunities, And that Each a but markets activities well advantage spot have there the is versed and when have decision about on. that a took process. the last I and by talk time. X the a do talking not we've a volatile point we This But about each research did right? we that years so capital done, time all are XXX% we've talking we're markets are happened made again.

as the for and credit markets think I a team very to when lot capital comes its forward comes deserves when deployment, important capital it So of thinking it to well.

Alexander Goldfarb

And John. Comp they at I'm use sure year, this will that that Committee coming

is... question Second

John Kite

they Alex. hope I do,

Alexander Goldfarb

suspect not I your pushover. that is a Comp Committee

to Second guidance. the goes question just same-store

For of but FFO, the despite this guys light street hit FFO came in, spot debt on bad Plains et the movie same-store side. normalization in the theater, is was you despite White the cetera, -- the

like the definitely better seems disconnect. it fact, portfolio seems in to of there and not the guidance where representative FFO of a credit the looks your growing. what theater, is. given And So your it normalization movie than is And same-store is be

same-store actually delivering? on portfolio what's the what with going why is disconnect and So and between your same-store

Heath Fear

not biggest company. low last pressure points Alex, range. there putting our as I are hangs remarks, our together there's discrete that where my FFO opening of total That's X where that XX in of for in disconnect that's we on year is happened a same-store only it's certain basis debt. an tell explained can you Probably the all-time the I we our we same-store. But undue set mean, debt I set bad had revenues. things bad

setting bad We at our would had a been drag at had the the normalized point at midpoint. basis we basis That's have at on store. XXX guidance, XX with points midpoint, a Now last it we're debt X.X% same year.

& from pressure we Beyond. the pressure from theater again, we Bed and plus Bath had and So have

expectation November, especially in forth those that well. of same-store line items pressures have set some as been lot we those I a there past were So think should numbers

our where year. Last is is, our again, So goal established, we last this we $X.XX. by and and like beat track those same-store established where FFO year, did our is FFO year,

Our year do the do the on can whatever can going to our power February, we is line early, it's same-store line. goal we're to on FFO in both and this it's -- we to everything exceed

So it's set. and optimistic. this is guidance where early, our is where That's we're but set, is same-store our

Alexander Goldfarb

But to based seeing of It's you're a Heath, your like the point, of back just see is sort not sort placeholder environment, bad in it like right? change for debt to going you there. a just the credit a normalized on level. It's not historic, going

Heath Fear

Alex, I basis set total XX mean historically, we debt and to revenues. at bad run of We between it XXX. XXX points

end at but it set So up. range. leading higher us to significantly right historical is we thought that's place it. end Nothing to our going see set the the things we'll in be believe we we're And that where range, the historical high of to

John Kite

points the mean, you if I at, fourth a quarter. we're little in XX Alex, Yes. basis obviously, at mean, fourth I over quarter, look

to was reasonable at basis lots a to the about of a and the and things go very points very we of dynamic guidance I XXX be do. the But a Some our a at prudent it's underwrite basis number. of that's you much in world, we the the from just previous points call this all is off but it way end, just shouldn't we operate are that to how granular. be prudence in stuff But Day, as year, receivables, post it's past fourth this and company, midpoint collecting the early market. COVID as and we of but like were about feels But in the Alex. the is quarter XX the and dynamic year thing it happening job This talking in worn remember way beginning again, that's the it's in ago, going year, the maybe here outperform, very Groundhog world, you

You built what know that. we're on. That's

look to challenge. we the forward So

Operator

Bank from of America. Jeff question with Our comes next Spector

Jeffrey Spector

'XX discuss with can historical? had when like I context, to backdrop, through into spend. today leasing how spend John, returns right, demand, we you put wanted I the in again, half versus returns on to that changed second the your maybe and you I that think spend. guess, And the when on the mentioned of the how to spend? the -- the those spend, have strength not mindset are it's

John Kite

speaking question, I Jeff. there other of terms we've yet accelerated. have great be don't say The that in than know think last I then got are to accomplished mean, some absolutely returns post returns higher historically. in are But now. COVID, been as I they really But I we was Yes. And would the disruption. and there tried what people what doing us when then I'm But out always for right we've lay really to out do. returns. conservative we still what's footing,

accomplished, to leased do. our the now. what's contrast what and between that we and capital, XX left getting XX% at when sit XX% I that there investor numbers. the when But we're of be boxes look be higher world the peers. there's But that most say, we're you would are there to that those we've spreads, think that's significant on already I'll admit, returns So presentation, and very They're then than high reason right the There's in actively to a decline. engaged first numbers no

get to of it's spend get we the those just cash and you sheet growth prepared the AFFO So have to in kind not X And way, by next capital, around. get just imagine we're a creation and that -- into so then and do continue trying if going business. foot remarks, Xx to shopping to a the to best down in years get We're I This for bringing we 'XX. And you're the and And end if numbers. long-term We're at balance deals I thematic range. company tenant those out terms it the going we there Jeff. choices probably when can possible little it, we're that in 'XX of just think if debt. $XXX deploy race. And center. out of over we to while mean that down and made trying there value a into deploy mention about is $XXX excited a is the a doing point, plow like the it your the not we flow can continue that, the we're we I leverage of in well, keep don't to tons of to to

to lot point continues but there, itself market at this A the time, So us avail optionality to of in in regard. that

Jeffrey Spector

the like not course, on again, Okay. development, of through it right? focus And 'XX. not to acquisitions, And lease-up, sounds confirm, acquisitions

John Kite

Yes. I when laid I market. for out there. valuing mean we're what what's we always was think, plan saying, and 'XX We're valuing the I I the clearly, in always out own as

transact, accretive but most we will it to it a like and will margin neutral on do in way likely way. or be we So the

So we've that takes that's but time, what effort. It able do. been takes a to of lot

As we program, we acquisitions terms not of would go -- will that absolutely, our doing lease-up from into that. deploying would capital but be in that away away take

Operator

Mueller question next from Michael with JPMorgan. comes Our

Michael Mueller

and you can trending I little you occupancy build talk was into wondering, a 'XX? see about how bit through XXXX

Heath Fear

going and both back way have occupancy plus see towards and did to through elevated to our imagine, our to at sort in guide our yes, But remarks climb occupied elevated we going towards terms you're don't pre-COVID do an and continue go gap you're of 'XX leased and in back climb to going opening it we're rates see to our We we because you're our occupied describe lease in to an Mike, levels. can our you start a between occupied our that until rise. leased Listen, and 'XX pipeline as occupancy. quite pre-COVID rates. of see snow to But a

Michael Mueller

I guess, I Okay. a think I up. potentially couple know that see or redevelopment have you that new you that And expansion be we separately, you're developments front? soonest would activate on could what then, of wrapping something do the mean,

John Kite

lease-up spend which and that Mike, the of think already we're saying signed said that to what's hopper I answering we're being I and that I X $XXX in very think on was, a we was gives do basically the the negotiated, million-ish sense -- just be what's when to going as question, been of good enough already kind on us focused want already years. next that's what's we've got platform, over we Jeff's why

that But of available to tour. opportunities which into and highlight about you is which we real occupancy working lease-up. 'XX wanes, lean there's next also why the value there. want of our that to on the getting this growth, incredible emphasize capital the And X and versus we're it implementation and we've So just will phase and look have the peer in is we course, is of if kind understanding land talked Virginia And process to there, on us. at I more in on estate, returns group, an fortunately, it's foreign our us, furthest the the a of along of lot terms available what we probably that the Loudoun of in piece that as tenancy that great design One embedded projects then we're all the is, upside we of have

talking leasing to Hey, or that's develop That's versus, the hear returns trying go the us I something we're going So to and buy about point something. I get got to across. got you're why to

Heath Fear

that up listen, to now XX% than Mike, want way this to X space. development to over right a to this pipeline work. advantage, I that money of XX% home It's less have a better existing the returns would we to I at environment in you our honestly, exciting put to this especially money an your to your have to think volatile such years. next spend lease over is describe Heath. given we million But also sounds maybe not can't Sorry, next -- $XXX the massive add,

the So in doesn't place We'll it's year. it's doing same we're sound right again, own a space. thing it but to -- great be it your doing last into 'XX now into 'XX, and investing be

John Kite

growing. this, know the don't is during X the this other $XXX million, this and still I will while of touched lower on Yes. the and we're space is is we're period doing issue yet spending that this go leverage flow And flowing we're while part we But cash the our cash time. either. lowest there in of Mike,

could, on especially have in we We do million based and environment, to of right a to, wanted if lot only opportunities million, but X% of this $XXX $XXX growing. So things could to come don't we go go the out think now it's returns. X.X%? change and from projects we and we If us that's and prudent firepower,

So, about think now for that's us. you should kind of the other thing that macro

Operator

from with question comes Wes next Our Golladay Baird.

Wesley Golladay

the pool. on just a question Maybe non-same-store quick

there. Should much have year? recent redevelopments developments some expect to did and we grow some in this that You

Heath Fear

much our Wes. think pool, in see don't I changes you'll nonsame-store

Wesley Golladay

growth I guess, any, mean perspective there? outsized and NOI from an I

Heath Fear

developments are our up. to lease of Some starting

some you'll but see NOI some So in that pool, major property non-same-store from pool. contribution nothing

Wesley Golladay

XX% then presentation. retention believe running last believe I that. retention has year? was And about a in it than base investor higher What I little your was your case

Heath Fear

mid-XXs. In Yes.

John Kite

Higher XXs, like XX%. XX%,

mean, So a XX% it's that's for been now Wes, I plus running at bit.

another is it's the we So called out -- it's reason conservative. it

should retention future a land, don't when again, an NAV That conservative are numbers lease-up. page you're conservative. those We -- so looking at ratio. and and include And you XX% include very we show take we there don't

Operator

next Instructions] Jefferies. with Linda question from Our Tsai [Operator comes

Linda Yu Tsai

mentioned and just 'XX? in spending for number You does How million the compare leasing this versus $XXX through TI 'XX 'XX.

John Kite

$XX percentage. going spent year over and million Much a our you between I $XX in round mean we million on back the million, are I a 'XX, million you look year typical higher. depending high, tell we was $XX numbers. before, which lease when to be $XX would these little is spent but

into we you then -- that couple progress by we're sequentially, So the got pointing to when that at category. already why driven out, really QX, Linda, it we anchor -- and was again, QX these the quickly are I see can it's tenants get you -- well we're lease mean, above, making details a and of we're how numbers over is and each percentage, because -- which which look and in of growing that

shops. and anchors So

we're normal levels. gets to it get this back So we into And 'XX, out. is traditional again, occupancy definitely, our And after maintain we assuming then that. it's That's as it pointing elevated. why levels and better even

Linda Yu Tsai

And volume that's then away there to momentum any demand like elevated that lot XQ? Was occupancy of in and from does had pull-forward leasing seems continue? this a you quarter. gains it Or leasing

John Kite

if and I of No. shops. we quarter. did lot had I not deals the a each the mean numbers, feel XX, little in quarter, shops, But we've -- I forward. don't look different. why we The TI because all always pulling -- at when you right, look we're little like all a it's at think talked a you quarter around our move is quarter box But about the spend in before bit that's was

I think strong. is demand to... the Tom, you want do

Thomas McGowan

that a demand, pretty and no it's in we in is incredible think Yes. year. signed square change the number were it's million off, And and pull feet. to able XX boxes I We that significant see that over we X.X

look you as as this at pipeline if moving time. So it's healthy at our was last it year forward,

of the still back roaring to get levels. So are make we sure our engines high to some historical

John Kite

our Linda, at X keep about And -- re-lease I we number it to the doing, think these get we're the Bath spaces. of talking again, beyond this, -- sheer I we of look that way and and opportunity Bed just even deals

X boxes, that Sierras, with negotiating high-quality just We're box XX the tenants called we're so Foods, get that selective the very now are we looking opportunity. are we've right? with and XX can not slap of right other that guys more why The we the done kind like what grocers And doing we're I Trader HomeSense, number out people there. heck about the that to business that and whatever or Joe's, that's or the into are more in say the people. done someone we've You is Whole going the these

why what away, And plodding So we're -- about value the creation very we're done. getting but excellent. there we're excited that's is really

Linda Yu Tsai

the $XX in million 'XX. What's mark-to-market the on one. ABR in last expiring One

John Kite

you Well, if at XX%, I the period ABR than is in a not low. year's real next ABR our to I actually, there. expirations. over then -- that this that. months, And I ramps even an like X-year And if would up. mean, and the beyond that look of at look X trailing But current you look if It's look you terms roll pretty take less over I but mark-to-market mark-to-market, think X-year opportunity you think, and the period at the it compare it you over average to there's years, XX

focus on that. would really kind I So of

the was fine expirations. with elevated you we'll years, But X there think near -- there is next real term and I is the opportunity there some kind be mark-to-market. over a of out a as go

Operator

to further call for no John like questions are time. closing this There over turn to remarks. back any at Kite I'd the

John Kite

for Naples we it. us. those in forward look be with who good. everybody, joining to next The for of thanks, you us to Well, looks Okay. And Thank you. week, going weather are

Operator

great the Thank you disconnect. may for now you program, This your participation. a conclude Everyone, and does have day.

Kite Realty Group Trust (KRG) 14 Feb 242023 Q4 Earnings call transcript