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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowKite Realty Group Trust reported a 70 percent drop in funds from operations for the quarter ended Sept. 30, after the Indianapolis-based
developer wrote off the entire book value of a Dallas strip center.
Kite took the $5.4-million write-down on Galleria
Plaza after it determined cash flows would not justify the cost of a ground lease and of capital expenditures to maintain
the center, which has Atlanta Bread Co. as an anchor. The move will add $700,000 to the company’s annual cash flow. There
is no mortgage on the property.
Excluding special items, Kite would have reported $8.2 million, or 12 cents per diluted
share, in funds from operations for the quarter. The results match consensus analyst expectations but
fall short of the $12 million, or 32 cents per share, the company reported during the same period in
2008. The lower per-share numbers are due in part to dilution from the issuance of new shares.
The
company reported a net loss of $3.4 million for the quarter on revenue of $25.9 million, which compares
with a profit of $2.9 million on revenue of $34.3 million during the same period last year. Kite officials
blamed the fall on a $4.7 million drop in construction activity and less income from the sale of land parcels.
Kite
said it has satisfied all of its debt maturities for 2009, and has cash and available credit of $102 million.
Kite owns
51 retail properties with about 8 million total square feet of space, and four commercial properties that add another 500,000
square feet.
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