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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCircuit City’s demise was bad news for Indianapolis-based developer Kite Realty Group during the fourth quarter of 2008.
Despite higher revenue, Kite suffered a $2 million loss in the period ended Dec. 31 due to the bankruptcy of the national electronics retailer, which had been the developer’s seventh largest tenant.
The company released its quarterly and year-end financial results yesterday after the close of financial markets. Its stock was up 7 cents this morning, to $3.57 per share.
Kite said the quarterly loss included the sale of properties, along with the write-off of assets totaling $4.4 million connected to three properties formerly occupied by Circuit City. The $2 million loss compares to $5.2 million in profit during the same period in 2007.
Revenue in the fourth quarter rose 5.7 percent, to $41.8 million, from the same period of the previous year.
For the full year, Kite profit dipped 55 percent, to $6.1 million, while revenue rose 2.8 percent, to $142.7 million, compared with 2007 results.
“Given the tremendous dislocation in the credit and capital markets, our primary objective has been the strengthening of our balance sheet, managing our debt maturities and conserving cash,” said John A. Kite, the company’s chairman and CEO in a statement.
Kite also reported fourth quarter funds from operations, or FFO, of $8.1 million, or 24 cents per share, compared to $10 million, or 34 cents per share in the same quarter last year. FFO is a financial measure used by real estate investment trusts to define their operating performance.
Excluding items, Kite reported FFO of 27 cents per share for the quarter. On average, 10 analysts polled by Thomson Reuters expected the company to earn 26 cents per share for the quarter.
For all of 2009, Kite predicted FFO in the range of 83 cents to 97 cents per share and profit of 10 cents to 21 cents per share.
Kite’s occupancy rate for its 52 retail properties fell slightly, to 91.2 percent in the fourth quarter, compared with 91.9 percent the previous quarter.
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