KRG - Earnings call transcript Q3 2024 | Kite Realty Group Trust

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Operator

Good day, and thank you for standing by. Welcome to the Third Quarter 2024 Kite Realty Group Trust Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand conference over to your speaker today, Bryan McCarthy, Senior Vice President, Corporate Marketing and Communications. Please go ahead.

Bryan McCarthy

morning, good and you, everyone. Thank Realty Welcome quarter call. third 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 upon

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 Instructions] today Chief Buell; President and Officer, Officer, Vice from President, and Kuni Heath Executive Chief Capital and McGowan; Markets Senior Executive Tyler President Group, Accounting Chief Tom Vice [Operator Chief Chairman Henshaw. Kite; Financial Fear;

to the turn John. now call I'll over

John Kite

on welcome, very history. the is and and quarterly we Bryan, details focus project development walk our I'll XXXX continue Loudoun. our on space, growth front leasing the everyone, guidance, the which of to in and updated call. our the quarterly leasing conference through you recently square announced and will of million company's results the quarterly quarter, Thanks, make longer-term X.X the including progress levers, at One volume strong delivered feet our another Heath highest to KRG approximately

the primary X of years, leasing. efforts the Over been capital last focus our allocation has

can drive the shop historical a optimistic in year-over-year heights. We're small sits now that to occupancy XXX which at both we basis environment, portfolio XX% point and to represents Our leased, anchor this increase. continue

credit uses. shops. spectrum profiles capital. small shop a be XX% XX returns to Year-over-year, anchor by a our spreads lease XXX and on continues is result points shop tenants leases small our up a generate of spanning leases strong, complementary XXX expected strong to Year-to-date, are of Demand cash rate with new as new of anchor return are XX% comparable tenants and basis both we've also small The executed XX% wide at and signing in over leases our these capital. on

$XX Our ABR average million. $XX, we Based drift expect into to first nearly our average head to XX% which velocity, our the important elevated elevated pipeline note historical we our on down that stay at current the is to through signed-not-open of remains signed-not-open signed-not-open leasing as It's in XXXX portfolio. and above the ABR current to half over pipeline pipeline is in our the XXXX. start

this the enters embedded KRG organic As latter lease-up to growth be part the occupancy The beyond portfolio opportunity focused phase, we levers of acutely in continues gains. our strong as of remain on mark-to-market We promote statistic by highlighted capital. nearly renewal the year-to-date of for spreads reliable as of nonoption the XX%. consistently indicator by as not movement landlord influenced rents most market blended it's

higher We're successfully especially on growth, driving small front. shop the embedded

an made we've cash quarters step X of NOI more sustainable a goals growth. XXXX. The over progress and our small the shop was in leases For signed is XX the nonoption X.X%, executed higher points annual leases the nonoption stream towards the represents long-term a flows basis X significant which generating driving for average cruising new XXXX, renewal past quarters of new and growth than of first and speed renewal outside in

for our Loudoun MSA. One On D.C. the development front, Washington, we expansion recently plans in the announced

this hotel of multifamily XX,XXX and square in As of into feet a retail complex installment we incorporate detailed office. square next Four of in will in development developers our the XXX-unit late-stage and to with also We're XX,XXX include negotiations third phase. X feet 'XX, XXX-room

the project. We'll hotel on our and contribution stake for both capital non-retail manage while are once in our for maintaining to a phases is finalized. philosophy uses multifamily the the agreements Our plans projects mixed-use share

One land significant Loudoun. developable amount to in 'XX Four of One at was our of our the adjacent event we takeaways communicated

the million XX next of Excluding we feet proposed X,XXX GLA additional X.X square and phase, over acres on commercial entitled of land. have an multifamily units entitlements for

focused While this phase, executing of track for in Loudoun plenty of One creating to have optionality continue country. phases on open-air is mixed-use we're next projects we the on becoming one to value. premier additional the

later in which of Four When we the currently While projects, mixed-use our to at over the years and and is of $XX NOI. property Southlake our in installment largest intensity million XXXX, of Town of control our over was NOI, on of just Dallas the the second the open-air producing took million quality leasing real of of underlying premiere Southlake in is 'XX X our MSA, $XX estate. generating we series hosted it asset. speaks topic Square which this platform

One Southlake extremely The is a whole compelling. combined KRG impact as of Loudoun and on

be While One generational the levels, end of and confident that currently year. the assets Southlake and trade assets by like will Loudoun market that there's another will in our market at the will underscore of trade importance these these infrequently, to in one the which We're the portfolio.

recent the we This which to Chicago the us earlier sold acquire a at West center in Cobb, Parkside Sprouts-anchored a Atlanta shopping the suburbs asset this up cap We property for in to rates, advance arbitrage of million. we in in asset acquired past this compression in locked allowed positive the $XX quarter, year.

years, our relatively and long-term the air KRG several number on take advantage been market selling in remain important desire past our positioned well that to product for high-quality note that net below of is liquidity to targets, opportunities we've of to any compelling our may arise. assets current as increase the the to the types. For With buying neutral disciplined It's in activity. open does continues meaningfully our leverage all

authorized a increase per increase $X.XX and sequential represents in which an Our Board year-over-year. Trustees increase dividend an our of has share, X.X% to X%

to follow our suit. As occupancy anticipate dividend the and next NOI we few ramp over years,

with investing. investors, is of yield. critical of risk-adjusted dividend is KRG's extremely our the dividend attractive sheet, a our balance many For long-term an of the strength aspect And REIT

to dedication. hard and before turning for team thank Southeast But of our the related incredible you, wanted grit closing, our dedication and their hurricanes. for In recent specifically always, to call Heath, the as to efforts team I recognize to the work their

and their assets of As vigilance damage suffered communities, their preparation, and patronage. minimal and proudly and customers a our our Southeast for and result downtime. our are We grateful serve support

Heath walk the I'll now guidance. through results XXXX -- call in turn to to call you

Heath Fear

morning. good and you, Thank

efforts. For those are grateful of one 'XX our of and in attended we more have your time Four that you travel events, for

into final hope long-term of to on conference. our KRG's Monday providing on views look you forward the We see NAREIT Vegas We our to to capital will in November and future. is the for Las a many hosting event our be and XX, vision prior sharing allocation glimpse which

are to to While intellectual in 'XX Five the in series property that available. response the has 'XX been Four assured rights positive, rest overwhelmingly can currently you

Turning results. to our

a of bad year, driven property the increase basis third XXX results by NOI in and same-property was of point to by $X.XX, same-property KRG net generated XXXX guidance For NOI X%. bolstered period. our offset the of minimum $X.XX NOI share the $X.XX recoveries, point of $X.XX in by primarily in we FFO at third earned of quarter a XX XXXX, growth of revised XXX Same outlook and are NAREIT growth points range to per our FFO comparable basis and basis rent relative the improvement by for midpoint increasing on debt quarter our Based assumption. to balance the increase

full full and bad basis with full a continuing At points NOI growth points a function year assumption bad combining bad points the year of of is year-to-date, a the of midpoint, revenues. XXX we of approximately X.XX% component debt same-property basis of The which bad quarter. basis XX total debt year fourth the debt experienced XX total assumption we of debt assumption actual assume revenues, of the for was

anticipating our comparable in same-property guidance acceleration As quarter fourth of period. implies, schedule are the the our the and pipeline growth for favorable due we to signed-not-open commencement updated an

a the felt to On it that risk capital with to by returned January, at than less XXXX X.XX%. and earnings we the debt prudent a August, of minimize the We heading In a $XXX were pleased market are we in able we XX basis call, in million we public the bond mentioned coupon to and issuing into X-year compared markets a improvement achieve achieved a year. we significant our levels credit in a to point spread anticipated in spread we July execution. compression

in As for them XXXX. on are we generating deposit maturing of a holding income excess interest yield the the short-term in proceeds, the debt account, in currently

availability front can under In with of of third that facility, of matures the important line XXXX. revolving our credit, in dynamic billion of through macro note our to all on debt $X.X amended our us, extension hand, environment of a very With satisfy September, it's quarter and our cash which in October options now we with extended together XXXX. the credit maturing

Looking more of lens through a available to billion opportunistic over with of EBITDA liquidity X.Xx. $X.X debt net and a

have Las another to many target still entire you to in leverage forward levels Thank of Vegas. significant within X.Xx. long-term ability We the X the we're for deploy and capital, our team looking seeing to of remaining while you to spectacular KRG quarter

Operator, this our questions. prepared open concludes for remarks. the line Please

Operator

Instructions] KeyBanc Todd from line Capital question with to come of first Our [Operator Thomas Markets. is going the

Todd Thomas

talked than in Heath, a little previously better seemed like outcome a about. it quarter bit of the third you

think more little the and talked the did up growth of still I NOI then by case, the you year 'XX, can in in around and any muted where increase that but the the trajectory quarter. few a quarter outperform was next around a And quarter? the as followed sounds about quarter? pulled versus we any being expectations from fourth the think put about this And for It sharper quarter like that's quarters goalposts growth? you ending forward sort fourth third you into this

Heath Fear

for forward we following just debt doing basically, I bad what on outlook into better the this little anything better the Todd, a bit think from of gave that quarters. same-store I And quarter. So driver wouldn't the us pulled primary say particular was

not our before and in the signed-not-open give see we're the contributions going so our in guidance bullish In optimistic remarks to pretty we trajectory to terms going this I'll our of outlook. that and the of pipeline, we're beyond, for that to said respect same-store accuracy But 'XX leave we're to time. 'XX with we're

Todd Thomas

another for comparing to being One the interested? that marketed like today? ilk. more appetite like also a to Loudoun on of for being little bit John, that and company's for you're like that that that or you that and then to adding a buy What's sort on curious question And transaction the in just the asset my Is of market on color portfolio environment, assets a the side get the second acquisition the are Okay. mentioned Kite

John Kite

of your more XXXX months into imagine, the environment has all increased buyers, space terms in really continues year. the that and retail capital There capital mean pension more strong. macro companies, question, to volume I I the be can sovereigns, to in about advisers. we've X the X before, air mean funds, I from, Todd. think as that's Sure, you think is flowing sources talked past insurance that REITs, flowing our previous into of dramatically over open I

yields better to to the assets than people So in well clearly these they accept, are as as historically. that were rates compression leads growth willing obviously in are that

a all, So competitive very it's say all in I'd market.

We and there are Loudoun centers Crown into that and remarks, think we company. are As I X think lot on. prepared think Union coming to go a maybe the of I are mean Hill, of in like have high-quality of them, don't assets. the on similar yes, but a they now lot mentioned people and assets quite we and that Southlake mentioned assets our that market of when of I One and have these can we

our people make do that. is understand that's goal, to So sure

X.Xx assets [ not in And few in feel is the balance mentioned for participate we again, is they're Debt-to-EBITDA in That's As look the would we our the that nature, why very of best relates buy we would space. we don't believe specifically best, like sheet, to if of and it to ] that. one dropping. those. have, at something we [indiscernible] -- that

firepower, We have optionality. a of a lot lot of

do. we always can We have are feel in and a as if that to value like absolutely we gone certainly be if appropriate at we it chose. execute we returns, position we to looking so what's available add and And

choose but in to. today, we what is trying participate that cash and we we're growing, if think to the sits and value much is that so say still our sheet the market the I balance capital it is we thing good strong can flow as have is our

Operator

question is to line with next Our Piper going come Alexander of Goldfarb Sandler. the from

Alexander Goldfarb

theme centers at going larger potential on maybe buy looking that more centers. of Sure. of these to some with John, just keeping

of putting doing, sheet, peers. really spent decade continues in you've to spot. low balance One really almost the at stock improving a the many trade versus getting time, a company same At the the that things is years, good unfortunately, leverage and a discount the

So sort a higher is to what increasing how do, if to great leverage say, do hey, great company, you tried you assets we've guys risk deserve flow, leveraged we're buy which balance against therefore, goes got of that cash a and, equity multiple? have

John Kite

question. That's a great

the that's great that a affords balance sheet and having is have that we make we're to a think great point trying I optionality. you do value

rate the bring the the growth entail? at under been goals So what you but do look you're So and/or is mid-Xs, we've each have I clear individual value have asset long-term we it to does lens that runway. the comfortable when what impacted [indiscernible] of total low assets are of to potential and that's that what and our objectives portfolio balance and a -- lot sub-X asset, sheet to opportunity the think of to

So say we think I it's thing. think one -- don't can I

have save have look to today, at business. this again, to we're we are individual overall we we what plenty where think each to component room. of of I But add pursuing the value

existing that would happens. generate and frankly, that, delever, if But we to of even and and optionality. doesn't to continue creates did more think we're continue I So we cash if see we happen just flow studying out it the again, free what that looking portfolio,

Alexander Goldfarb

Okay.

mentioned One Loudon. is, you residential, question you us which Second showed at

much let's is if in Kite [indiscernible] trying guys that is potential your is existing investment that of portfolio have more get As you add a on the entire and actively there multifamily opportunities, Or been more assessing One And Just how sense to lot is is also, across say, Loudoun the your investment there of something hey, portfolio? to a if a multifamily? more sense more case? plan there's portfolio? is

John Kite

think, would an I think, have chase that have equity you currently we mean as and set them. Alex, numbers I to tell these we I interest X,XXX there about Well, you go know, generally we out say units. don't I in,

we You and entitled. be there's mentioned phase mentioned there Loudoun to top XXX of of that, is I that on X,XXX the next another another going And units alone units. think

portfolio, that reality to to and can the As years it the relates stay thousand the have sense what have X,XXX so do manage we're but the over if pursue I we share and the for we we this, to more said returns to others not the we in. going estate The units. us. to choose use that that, will have generally don't like balance talk to real makes few sense. again, of But capital [indiscernible], generally will know to have do that's mean, I the contributions going next to. we drop several is And have make say and we risk titled some partners to units the and our we

it's part it So have trying And this the business. It's of fence a assets let But these can clearly come this. of it, -- pointed the densification out, of a high-end to... a we not business. we're we that is as to do you where we part clearly lot

Operator

from come to is next the Compass Floris Van Our going Gerbrand question line with Dijkum Point. of

Floris Gerbrand van Dijkum

this it think probably -- is, me, be a voice seems me. NOI, next but I of your obviously, most bad to it impact growth. going it's I'm mean, to you're a And little connection. I John, your and 'XX. sure almost muffled. on question start project It's way, what sounds just the of your heady not as SNO forward, in it's that's X% to close. I mean By But too year it's just you Maybe pipeline. pretty maybe underlying but

if we an I things growth. acceleration mean, So see out, underlying work in should

growth much and space? later And shop where untapped into the about still start on how anchor of composition the see you for think growth for leasing as do that's can more the that's your side opportunity lies Particularly you on upside box innings the get of do changing. your KRG? to talk greatest if that Maybe you how you -- repositioning,

John Kite

Sure. that Does better? [indiscernible]. hear me? you Can sound

Floris Gerbrand van Dijkum

apologize. as not great. still I It's

John Kite

Okay. know to I apologize what too. I say. don't

us. over we're place Now the moving for microphones all

the can been me. when coming think and we are So where think hopefully, pre-COVID. where I becoming more store you're to same anchors are line we gains you like hear to The has room is, looked bottom I run in we it and look shops. from, clearly the at the close when looking out we're is at question rates I small if occupancy the where The have were at that, growth

able think seen last at there's over upside shops that the think -- made I if that said. growth I you I and look existing also speed, you rents So implied as us better efforts the and think you really you've that when the you look rents and versus at the XX% just we flow that cash look growth the there. point we signed-not-open the a cruising of that then And also years have think the real I would revenue, of couple do you spread generate we're incurring. our our at to as there, combine we that [indiscernible] same-store lease-up the it's our at and that's we're

it's hope that I of what So those overall, I for. a looking but combination helps think you're X,

Heath Fear

Yes.

that nice add shops. will and the is also thing that [indiscernible] We split between

that's and demand a bit $XX [indiscernible]. anchors. demand. of not the are leasing bonded seeing So the $XX strong continued And the we're really Again, strong on seeing at as front. of mentioned, $XX in that's a really, ABR, in John shops Those demand just broad-based pockets in we're over the

John Kite

is, boxes that add the only Yes. half we than are them. and I'd have the thing we right And of [indiscernible] now actively remaining more

I to spreads drive we're the in strong just momentum So to the continue and said, continues that able times.

Floris Gerbrand van Dijkum

Maybe my XX% have to capital more -- grow tend to you at But X having higher follow-up, assets is bigger this Southlake past grown look NOI particularly if bigger obviously, over assets grown and related allocation. your rates. the at years,

estate, and that one decisions? key think when of consider about you're investment making you capital is real you other things the deploying As that

John Kite

on that to if specific down quality asset. Floris, being an more capital I a And was being growth -- in asset. pro smaller the than a Loudoun. results, able was of perfect same example, opportunity and the recent going machine obviously, the asset basis you're as applying that's deal. each it so it merger and more seeing comes it's individual individual kind move the needle rata and really deploying timing said, Southlake, those you said get sense of to have at the an That to and we're thing the the our of And was to kind of that One

based growth, passed fact we we're I the like short-term that mean on quality looking So but that felt estate of are yes, growth. And assets that would in long recently real really there's token, we've we're wasn't estate. going same to by I in we run large focused assets long-term quality the that on several that get we say support the way. real the on get of really [indiscernible] the that the to But bigger looked the the growth. at

Operator

with is Citi. question going next of Craig come our from line to Mailman And the

Craig Mailman

debt in mentioned a better bit came had you expected. than you bad had little Heath,

the maybe you the less the of now, mentioned out Store news couple of you over you for the know over guys. like I thinking about credit X% next couple months? As of not guys months, how tenant broadly, Container for specifically, they're they're in than them -- is are But though being ABR look next

Heath Fear

Yes.

out Craig, compete So we're we now, separate of and of to as We going manage the out 'XX, now able 'XX of to tenant. do course go we're d bucket. a a reserve particular that's us or that looking giving a have fall in pause sort debt and with nothing kind general us next be to for year right wanting into separate

made stores, $XX it's container that to they yesterday, of of And they stock ABR. you've following bit if folks also been you'll But the a relates have their it see conversely, million a [indiscernible] had [indiscernible] as at investment disclosure. Now it, blip [indiscernible]. from a on

there, amount, be coming debt So to happening there's a is debt sponsor XXXX. things huge actually non good their due this even in extended [indiscernible] the

on the So business in that survive. to I brand that think something is

But some Container we good to, in to we release at So is it. real feel if estate. Store business. we X that this have our do continues to best of spots And business

feel an [indiscernible]. that's on we again, that. good We that underowned business. we about of course, So think But, monitor

Craig Mailman

get But more want thinking, pipeline how the with to clearly runway you guys helpful. getting snow of premium you then that, on have acquisitions to a the just you're about cash ramping in through you here. you But that's point, will the that belabor But don't are as you and a benefit That's it at on point today, right, equity the as And I maybe bit. the is invested. assuming returns the that potentially near talked leverage have commence. trade leases term continues guys lower flow capital are you the your where higher

and of are to right, are equity to or the cap to interested in stock overall? you inside still grow have you where this debt. the Or less are trading? high trading of would even a about you you a How X, be if, rates comfortable is a is go area from think say, where a that if around How or still how do scenario guys kind spread leverage perspective, willing year is just relative you growing the accretively portfolio huge

John Kite

that. me let Well, with start

of we're aware That yes, is, prudent quite is, been and done market. the total have equity that line of where in in cost extremely bottom great and, bond said, it capital we've being should the frankly, aware what we've very a are our we be. done terms where of the think job I is

Craig, We're position, about plays in in kind leasing see lot that we I mode. talked good this us a a in great. can where more leasing So returns the to that's that generate still still high out. mean of capital. We on accomplishments, I think have we're of front

And so the capital. continues to highest on be that return

kind a generating and and come position cash that we're As year more we to 'XX make of starts and XXXX, -- decisions, into we to think can that X.X, some of into then we'd absolutely around decisions as peers this even question and absorb, dollars. at move we late And I together low the flow still treasury relative we your free in next d and more investing we're 'XX, all leverage. will to are will the increase And specifically, we where increase let the leverage? We can if X.X. be frankly, we're in

I we increase all, to is accretive, there's us. And leverage do I to real want to very want we want it obviously. think [indiscernible] there. what that at And be will So to we come think

continues continues market position. as improve, are the next as the think think I great lease-up working favor, point, characteristics a in will pop in our actually this I year. looks at So And to it to into like supply-demand continue in which we're and

capital we'll very allocation decisions make And that's we'll do is So primary really just it and accretively. allocation be do to capital good that and job, decisions. and our selective smart

Heath Fear

is somewhere with we're perspective, our within $XXX a that we could pick and between of just of putting target. I'll we acquire $XXX that debt. assets, doing million X.Xx, And remain kind long-term that of and add, which as cap think at million in Craig, rate

capital to driven, cap on of lipid the debt, we're and this very rates, a still based about just makes think issued us [indiscernible] [indiscernible] it's and that of want sense. to your the context we accretive I and something when to mean lot and we assets and use maintain quality that A cost allows [indiscernible] So a [indiscernible], that our [indiscernible] [indiscernible] sort bond the sales be make. not

Operator

next come Reale of Bank question our to from Andrew with is And going of America. line the

Andrew Reale

lock compression Parkside up? Just rate deployment And degree that capital, on the latest opportunities? curious but signal messaging the you that continues internal the use shift after might external to be deal your that of you more if is your speak a on to and could into best transaction cap this just acquisition, of

John Kite

Yes, sure.

XX cap rate terms would that we a to that what I cap the In sold we we is acquire be able be is -- basis of the for weight today it of probably took to deal. timing would at tell Chicago. to And it than were it XX position the say was didn't on seller points to accretive cap in you did in higher to to based time specific the rate, mean that a I the assets we it that the rate. the close the give and

it's great for deal So us. a

in of question, of the the sorry? to that they to assets And we and today. value be generally X, of mean overall, own imputed of kind the that out second as rates where X, our that my versus price market. the commentary assets that that Xs. I quality ago part point the cap there I'm low in of continues terms compressed own But to would were trades in X it of gladly way. mid-Xs we your months stock was What be they relates are a significant you And type the

Andrew Reale

of I broadly, it's your is your transaction more Just is deployment array mean, that of curious external just a wider shift that messaging still signaling if a best opportunities? internal into capital. use But

John Kite

now I terms -- today to capital. is continue really right accretive to very us at that to choose that as high of to internally the that next point that make can an grow think maintain couple opportunities. overall environment in -- into aggressive lean going be us have desire way, is in returns that that we the we That they're on will grow. be And certainly to such think able we're they balance move to. things of a also trying do think we for if And the find being move, be because to strong we opportunity to it's sheet maintained said, I we a quarters, time look the

Heath Fear

point, we starting [indiscernible]. this was what's lease acquisition. seeing talked the think talking at end [indiscernible] about something a activating our mean the -- that to about they're all At I One that going and about that we're John Loudoun the to of tunnel. extended that really capacity Mark light at said. -- and

absolutely after what's over. discussing going I'm happening be we're that's thing the is going be to [indiscernible] main Vegas. So in on the to focused And

we'll So more move [indiscernible] details on. ask can then and it, some

Andrew Reale

a question me. And Okay. just second for

what far this at needs does signed are have XXXX the to how commencement Just future for leases addressed into time been And of point? percentage compare curious XXXX? your beyond last also, that how And leasing this being year?

Heath Fear

I say would been for very XX% year. our XXXX compares of [indiscernible] leasing have which last addressed, about

So I again a to the with think good [indiscernible], very continues be on And we're elevated. [indiscernible]... track

John Kite

The [indiscernible] leases delivery. signed for are how and

I the now could are leases to on right answer we that working in think that 'XX. deliver So is

as standpoint. So these much X just out as periods negotiation go can a year from

Operator

comes the of question next from Daniel with Propera line Green Our Street.

Unknown Analyst

long-term key it the look mentioned be instead that what of property? variables as demographics the our a were or growth You you on you in property, to say focused that growth anything growth specific would of portfolio. in you your long-term predictors short-term for In experience, your high whether are

John Kite

Yes.

have above-average center not a type to value. the -- to of are specific to look associated estate, is, rollovers center the access I things the options whether number, think for of at lifestyle over then those rolling ability it a we There's center generate to the a them, options it's and relates grocery-anchored to lot a and of embedded or with real the how it's comes sure, in we the have center, mix, rents it or at fair community or market shopping all, those are it underlying merchandising growth. they first much it's down years a quality of as whether X next that that X

increase embedded if shop huge as of small the what last portfolio get to you over look able in rents embedded a the that it's years, this couple we in the growth. in of comments basis year, XX about part business. the And is up just how our made we where why about that's year last we example. out go in we've been And versus And points doing are an

our think is look the best, think and of which recovery our good not I you'll And in that the one you very at So between you revenue, G&A you we a our think one at balance space. we're you if see operating to there's real the look best I our margins operating of metrics, look the. at look ratio at if and platform,

then And impact the the we estate, estate. just to real it comes down can real

push So we'll it's the at the it to good I of very to growth. a part that look opportunities fun we business. and those there's for deals find the can think continue We're --

Operator

question is line next to Wells Kesten Fargo with going from Securities. the Dori Our of come

Dori Kesten

it's you year? update guess that close rather the can any finding on to have within the that there provide competitive? Is for are you held the also I sale? would around expect assets process you you And

Heath Fear

Absolutely next And to supposed within the expect or early market, year. close the the asset today to I week. hit is think,

period. it's very And the be X-year confident transact time we're again, So imminent. we'll within to able

John Kite

year, this a within within not year. Yes,

Heath Fear

months. XX Within right? year, a Within

Dori Kesten

percentage at the over They the X% then renewals And bumps. pretty about it. of It's rent rise continue small to leases, with quarterly. shop impressive. Got new

for is the that going give to Or Are of contract that? you're purely finding supportive environment that in achieve of you over year. in to about X% think have you to the the -- growth areas leasing your other I you're markets? that

John Kite

I we environment that. all, things improved our customers, mean we've leases -- think our at in believe has word, we've the that our what's the right And that relates in as negotiate we gotten better always I -- not terms that fact, to No, -- with that Dori. partners. even of it are

we're foregoing it growth. in as lease the what relates do able to embedded our of terms not rent we're anything to in So terms actually

think you can supply very Tom, believe know, as rent vocal been which, our you to add to growth and how only get around And side we've And business. is still for should focused want as continue. the as And the that think continue in strong, our small obviously internal that we anchor that that, well progress. making overall demand retailers the leader get environment platform. we shop certainly, as our being And business, important now, generate we're ability better. and that we've to embedded this logical you move know, to to that better it's favor, the we're but And that? harder, the I very with been of in is on would in

Thomas McGowan

thing flexibility most our about of of parcel. care the only would Yes. have much as not It's be making their we But into long-term about is terms The one fixed-cam focused language, say surrounding we sure assured is around growth. areas entire real that come in they as team I on estate exclusives, just just important estate components about real committee.

ones a are can lot a company. from on So for that, problems we the perspective, create of the because long-term that focus attention those

the great a does hitting inside team our document. ancillary the in So of job components with all growth

Operator

JPMorgan. Michael be next Our to the going from with is of line Mueller question

Michael Mueller

guess on when And opportunities With in cash allocating mixed talked that going any the are there the about to you future to you're use flow really mixed-use? Loudon that just more or and retail-driven select back focused considering capital, I retained are developments. general? projects release that of not comment kind

John Kite

obviously of it specific was over that One flow probably yields yields and in increase that basis. deploy at are we platform, obviously, free we're to flow a on the can risk-adjusted think getting terms That's lease-up going is can Michael, And the we cash existing comment, of that not the I of development redevelopment we goal. good were cash our period trying redevelopment, and of be better. stages that And say, Well, just risk-adjusted later Loudoun. into the very what time as our believe into to to always

centers can to to on adding existing of as ground center, an lot land up, even existing make or to But adjacent relates sense. a it

pivot we into doing harm do I to So sheet. can we balance all that it do direction at think the without and that any believe

forward, think I So move we as that important. that's

that As more It's a going flow, it those cash in adjacent a a really development example. Fresh itself. delivered we Port And And down anchored to be we large find and just can by was more relates a opportunity the I we to product retail-only parcel they're again, grocery that that retail versus an generate a on free extremely for to own Market. center that us mean center is in to nice ground was of mixed-use, to recently Florida That a specifically comes as St. Lucie, small this we good doing sign as drive opportunities. acreage value. well.

Operator

of with Our comes Fiagon from next question Baird. line Alex the

Unknown Analyst

First new are your one is, me retail being for most aggressive space centers? in the categories which for

John Kite

want that? to do Tom, you hit

Thomas McGowan

a our West categories and late, just we've that category of out many we to as in the different X tremendous X work with about side, of this success further, are took we with of And opportunities space. the on had some best trip on One or names is grocery spans the finding users.

to happy Dick's, the Joe's. recent strong extremely we've core your been the We've Alliance, Trader components, deal that. So basic box continued in LLBeam, with very Ross, HomeGoods, with do the Total

So word this we strong the But had approach just credit up tremendous successful the increasing the top terms all all, moved base And of in feel use I one we've we've portfolio. credit. of priorities while diversity the think with an is diversifying that's as like lease extremely quality. of in to been

John Kite

-- is portfolio our have that one of only and with the that asset from retailers. transactions the add is in customers strong I've of it diversity than our in -- this in do ever The our portfolio thing retailers relationships service in of types strength with to benefits ability all of really to seen everything deeper span And would to of that of luxury is base pool our I retail. we the tell the Yes. business, the our I we're would history you that

we're part well air definitely that. share, very is years to several market and more a and going over of open next So more the positioned take to be

Unknown Analyst

a like or shop. to XX% total about XX% is composition portfolio looks second for one, anchor And it the Helpful.

As the be forward? you breakdown leased, to expect portfolio gets do moving what fully that

John Kite

the doesn't going change less of that almost assuming it plus be generally to our won't I than XX%, Remember, much. leases. also little we Well, XX%, XX-XX as change a actually, minus. in range, a or ground portfolio have revenue we're kind lot, mean of

both is focused think that because There are important. own it's out number that own neighborhood, power. the everybody balances bit. we Right spectrum community bottom where is skews now, a that's we little a this that composition I of good centers and we of lifestyle, And own of bit more growth. really But stability. in stability own we grocery, we ends So and own growth little why mixed-use, certain terms on composition is times line, a

good You put portfolio. that all a pretty together, it's

Operator

come is of from to question next line going Brendan with Our Jefferies. Cutler the

Linda Yu Tsai

Linda. It's

Do One then in overall? are And lease up like Regarding the mark-to-market you Container your these will look locations, X other Store, Southlake. rents do quality and than know X? highest I Loudoun think faster what

John Kite

Linda, it's John.

historically was that think Heath be mentioned. as of those in First quite it's I high pointed properties. pursued all, was viewed that I generally just that a a mean high-quality quality. property as wouldn't not couple tenant are out, not very They in generally speaking, Store you Container aggressively

the we there's that, in at walked in So We're the things change on stage that all well. that think them Heath we're X mark-to-market you the that, time, fact are that through, at not very would are this nothing I going term. think what based to near point radically positioned of where at looking indicate

that boxes, of there's to estate in. the said, real That these particular lots on particular them user, being could based optionality the we boxes one Also But lease size, the could market we these to on they're split We back. that. that continue doing still confident hope get really the space would we're strong. remains not just be it we're is. hope very very as We we productive

Linda Yu Tsai

would mark-to-market forward? bumps, higher providing GAAP then you And consider rent going your and spreads in contractual spreads cash disclosures [indiscernible]

Heath Fear

We spreads funny you that ask that's we're used consideration. something It's Linda. GAAP to under and that, of have but it, provide kind --

than shop cash So the our bumps stay when the But embedding be we're tuned. side, X% on needless to higher numbers, say, spreads. especially GAAP much would

John Kite

lot spreads, mean but my doesn't everybody what higher. is there But is exact there are bottom they're Obviously, out gap. another talk same represents and the we very strong the are, spreads our personal a about I GAAP Yes. that that metric our certainly business can thought Linda, report have in line now cash way. we

know. don't I matters, that whether Now

Operator

now to Chairman like for Kite, the hand remarks. back or would CEO to closing conference John further and any over I

John Kite

joining you of at a Really Well, Las look you. to we in forward just in want -- appreciate And seeing us. the our company. Thank again, for I 'XX. in Vegas your of lot everybody X interest look hopefully, installment thank final to

Operator

you great conference may day. today's Everyone, call. a Thank concludes for you participating, disconnect. This have now and

Kite Realty Group Trust (KRG) 31 Oct 242024 Q3 Earnings call transcript