Kite Realty Group Trust Provides Update on Dispositions and Debt Activity
December 22 2015 - 4:16PM
Business Wire
Kite Realty Group Trust (NYSE:KRG) (the “Company”) today
announced the completion of the sale of two unencumbered assets,
Four Corner Square in Maple Valley, Washington and Cornelius
Gateway in Cornelius, Oregon. The Company also announced it has
paid off the $90 million mortgage associated with its City Center
property in White Plains, New York.
The dispositions resulted in aggregate gross proceeds of
approximately $45 million, which were used to partially fund the
recent redemption of $102.5 million of the Company’s 8.25%
preferred shares.
Four Corner Square is a 119,579 square foot shopping center,
including ground leases, anchored by Grocery Outlet and Walgreens.
Cornelius Gateway is comprised of 21,326 square feet tenanted by
FedEx Kinkos and Anytime Fitness.
In addition to the asset dispositions, the Company unencumbered
its City Center property in White Plains, New York by repaying the
$90 million in property-level debt with proceeds from a draw on the
Company’s recently closed 7-year term loan. The early retirement of
this debt resulted in a one-time debt extinguishment gain of
approximately $5.4 million that is primarily attributable to the
non-cash write-off of the premium associated with the debt that was
recorded at the time of acquisition of the property in 2014. This
one-time accounting benefit will not impact the Company’s 2015
Funds From Operations (“FFO”), as adjusted (the metric upon which
the Company provides earnings guidance). The early debt retirement
will, however, result in a $0.06 increase in 2015 FFO per diluted
share, as defined by NAREIT, which will be partially offset by the
previously disclosed $0.04 decrease in FFO per diluted share from
the non-cash charge associated with the redemption of the Company’s
preferred shares earlier this month.
“The sale of Four Corner Square and Cornelius Gateway
demonstrates our ability to capitalize on the current market
environment and strategically exit our non-core markets,” said John
Kite, Chief Executive Officer. “The team’s efficient execution on
these transactions allows us to deploy the proceeds in an accretive
manner while further strengthening our investment grade balance
sheet.”
About Kite Realty Group
Trust
Kite Realty Group Trust is a full-service, vertically integrated
real estate investment trust engaged in the ownership, operation,
management, leasing, acquisition, construction, redevelopment and
development of neighborhood and community shopping centers in
selected markets in the United States. As of September 30, 2015,
the Company owned interests in a portfolio of 124 operating,
development and redevelopment properties totaling approximately 25
million total square feet in 22 states. For more information,
please visit the Company’s website at www.kiterealty.com.
Safe Harbor
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 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: national and
local economic, business, real estate and other market conditions,
particularly in light of low growth in the U.S. economy, 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, its indebtedness, the level and volatility
of interest rates, the financial stability of tenants, including
their ability to pay rent and the risk of tenant bankruptcies, the
competitive environment in which the Company operates, acquisition,
disposition, development, joint venture, property ownership and
management risks, the Company’s ability to maintain its status as a
real estate investment trust for federal income tax purposes,
potential environmental and other liabilities, impairment in the
value of real estate property the Company owns, risks related to
the geographical concentration of our properties in Florida,
Indiana and Texas, the dilutive effects of future offerings of
issuing additional securities, and other factors affecting the real
estate industry generally. The Company refers you to the documents
filed by the Company from time to time with the Securities and
Exchange Commission, specifically the section titled “Risk Factors”
in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2014, which discuss these and other factors that could
adversely affect the Company’s results. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20151222005924/en/
Kite Realty Group TrustMaggie Daniels, CFAMedia & Investor
Relations317-713-7644mdaniels@kiterealty.com
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