INDIANAPOLIS, April 30, 2024 (GLOBE NEWSWIRE) -- Kite Realty Group Trust (NYSE:KRG), a premier owner and operator of high-quality, open-air grocery-anchored centers and vibrant mixed-use assets, reported today its operating results for the first quarter ended March 31, 2024. For the quarters ended March 31, 2024 and 2023, net income attributable to common shareholders was $14.2 million, or $0.06 per diluted share, compared to $5.4 million, or $0.02 per diluted share, respectively. Company raises 2024 guidanceLeased approximately 1.0 million square feet at 12.8% comparable blended cash leasing spreadsReceived a credit rating upgrade to Baa2 from Moody's Investors Service "The KRG team continued its strong momentum into the first quarter of 2024, generating approximately 13% blended cash leasing spreads and driving higher embedded rent bumps," said John A. Kite, Chairman and CEO. "Based on our first quarter outperformance, we are increasing our 2024 NAREIT FFO per share guidance by $0.02 and our same-property NOI growth assumption by 50 basis points at the midpoint. Our best-in-class operating platform, balance sheet, and team have continued to deliver results and create value for all stakeholders." First Quarter 2024 Financial and Operational Results Generated NAREIT FFO of the Operating Partnership of $112.8 million, or $0.50 per diluted share. Same Property NOI increased by 1.8%. Executed 185 new and renewal leases representing approximately 1.0 million square feet. Blended cash leasing spreads of 12.8% on 130 comparable leases, including 48.1% on 19 comparable new leases, 12.2% on 57 comparable non-option renewals and 5.3% on 54 comparable option renewals. Cash leasing spreads of 23.3% on a blended basis for comparable new and non-option renewal leases. Operating retail portfolio ABR per square foot of $20.84 at March 31, 2024, a 4.0% increase year-over-year. Retail portfolio leased percentage of 94.0% at March 31, 2024, a 10-basis point increase sequentially. Portfolio leased-to-occupied spread at period end of 280 basis points, which represents $32 million of signed-not-open NOI. First Quarter 2024 Balance Sheet Overview As of March 31, 2024, the Company's net debt to Adjusted EBITDA was 5.1x. As previously announced, issued $350 million of senior unsecured notes due March 1, 2034 at a fixed interest rate of 5.50%. The Company expects proceeds will be used to satisfy all 2024 debt maturities. Moody's Investors Service upgraded the Company's corporate credit rating to Baa2 from Baa3 and maintained a stable rating outlook. Fitch Ratings revised its rating outlook for the Company to ‘Positive' from ‘Stable' and affirmed the Company's ratings, including the ‘BBB' Issuer Default Rating. DividendOn April 26, 2024, the Company's Board of Trustees declared a second quarter 2024 dividend of $0.25 per common share, which represents a 4.2% year-over-year increase. The second quarter dividend will be paid on or about July 16, 2024, to shareholders of record as of July 9, 2024. 2024 Earnings GuidanceThe Company expects to generate net income attributable to common shareholders of $0.30 to $0.36 per diluted share in 2024. The Company is raising its 2024 NAREIT FFO guidance range to $2.02 to $2.08 per diluted share from $2.00 to $2.06 per diluted share, based, in part, on the following assumptions: 2024 Same Property NOI range of 1.5% to 2.5%, which represents a 50-basis point increase at the midpoint. Full-year bad debt assumption of 0.55% to 1.05% of total revenues, which represents a 20-basis point decrease at the midpoint. The following table reconciles the Company's 2024 net income guidance range to the Company's 2024 NAREIT FFO guidance range:     Low High Net income   $0.30 $0.36 Depreciation and amortization   1.73 1.73 Realized gains and losses on sales of operating and unconsolidated properties, net   (0.01) (0.01) NAREIT FFO   $2.02 $2.08         Earnings Conference Call Kite Realty Group Trust will conduct a conference call to discuss its financial results on Wednesday, May 1, 2024, at 1:00 p.m. Eastern Time. A live webcast of the conference call will be available on KRG's website at www.kiterealty.com or at the following link: KRG First Quarter 2024 Webcast. The dial-in registration link is: KRG First Quarter 2024 Teleconference Registration. In addition, a webcast replay link will be available on KRG's website. About Kite Realty Group Trust Kite Realty Group Trust (NYSE:KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company's primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of March 31, 2024, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space. For more information, please visit kiterealty.com. Connect with KRG: LinkedIn | Twitter | Instagram | Facebook Safe Harbor This release, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to: economic, business, banking, real estate and other market conditions, particularly in connection with low or negative growth in the U.S. economy as well as economic uncertainty (including a potential economic slowdown or recession, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending); financing risks, including the availability of, and costs associated with, sources of liquidity; the Company's ability to refinance, or extend the maturity dates of, the Company's indebtedness; the level and volatility of interest rates; the financial stability of tenants; the competitive environment in which the Company operates, including potential oversupplies of and reduction in demand for rental space; acquisition, disposition, development and joint venture risks; property ownership and management risks, including the relative illiquidity of real estate investments, and expenses, vacancies or the inability to rent space on favorable terms or at all; the Company's ability to maintain the Company's status as a real estate investment trust for U.S. federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; the attractiveness of our properties to tenants, the actual and perceived impact of e-commerce on the value of shopping center assets and changing demographics and customer traffic patterns; business continuity disruptions and a deterioration in our tenant's ability to operate in affected areas or delays in the supply of products or services to us or our tenants from vendors that are needed to operate efficiently, causing costs to rise sharply and inventory to fall; risks related to our current geographical concentration of the Company's properties in the states of Texas, Florida, and North Carolina and the metropolitan statistical areas of New York, Atlanta, Seattle, Chicago, and Washington, D.C.; civil unrest, acts of violence, terrorism or war, acts of God, climate change, epidemics, pandemics, natural disasters and severe weather conditions, including such events that may result in underinsured or uninsured losses or other increased costs and expenses; changes in laws and government regulations including governmental orders affecting the use of the Company's properties or the ability of its tenants to operate, and the costs of complying with such changed laws and government regulations; possible short-term or long-term changes in consumer behavior due to COVID-19 and the fear of future pandemics; our ability to satisfy environmental, social or governance standards set by various constituencies; insurance costs and coverage, especially in Florida and Texas coastal areas; risks associated with cybersecurity attacks and the loss of confidential information and other business disruptions; other factors affecting the real estate industry generally; and other risks identified in reports the Company files with the Securities and Exchange Commission ("the SEC") or in other documents that it publicly disseminates, including, in particular, the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in the Company's quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. This Earnings Release also includes certain forward-looking non-GAAP information. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of our operating performance. Please see the following pages for the corresponding definitions and reconciliations of such non-GAAP financial measures.   Kite Realty Group Trust Consolidated Balance Sheets (dollars in thousands) (unaudited)       March 31,2024   December 31,2023 Assets:         Investment properties, at cost   $ 7,758,372     $ 7,740,061   Less: accumulated depreciation     (1,452,715 )     (1,381,770 ) Net investment properties     6,305,657       6,358,291             Cash and cash equivalents     83,579       36,413   Tenant and other receivables, including accrued straight-line rent of $58,492 and $55,482, respectively     118,057       113,290   Restricted cash and escrow deposits     5,385       5,017   Deferred costs, net     285,452       304,171   Short-term deposits     265,000       —   Prepaid and other assets     131,765       117,834   Investments in unconsolidated subsidiaries     9,599       9,062   Total assets   $ 7,204,494     $ 6,944,078             Liabilities and Equity:         Liabilities:         Mortgage and other indebtedness, net   $ 3,167,513     $ 2,829,202   Accounts payable and accrued expenses     171,574       198,079   Deferred revenue and other liabilities     258,985       272,942   Total liabilities     3,598,072       3,300,223             Commitments and contingencies         Limited Partners' interests in the Operating Partnership     73,713       73,287             Equity:         Common shares, $0.01 par value, 490,000,000 shares authorized, 219,603,862 and 219,448,429 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively     2,196       2,194   Additional paid-in capital     4,887,573       4,886,592   Accumulated other comprehensive income     54,891       52,435   Accumulated deficit     (1,413,828 )     (1,373,083 ) Total shareholders' equity     3,530,832       3,568,138   Noncontrolling interests     1,877       2,430   Total equity     3,532,709       3,570,568   Total liabilities and equity   $ 7,204,494     $ 6,944,078   Kite Realty Group Trust Consolidated Statements of Operations (dollars in thousands, except per share amounts) (unaudited)       Three Months Ended March 31,       2024       2023   Revenue: