Kite reports narrow loss as revenue rises

  • Comments
  • Print
Listen to this story

Subscriber Benefit

As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
This audio file is brought to you by
0:00
0:00
Loading audio file, please wait.
  • 0.25
  • 0.50
  • 0.75
  • 1.00
  • 1.25
  • 1.50
  • 1.75
  • 2.00

Kite Realty Group Trust Inc. reported a narrow first-quarter loss as a healthy revenue increase and a gain on the sale of an out-of-state shopping center were partially offset by a $1.3 million litigation charge.

The Indianapolis-based real estate investment trust was busy during the quarter, making moves both on the financing and property sides. Kite earned a $3.1 million profit on the $29.4 million sale of a shopping center in Marysville, Wash., and it sold land at one of its developments in North Carolina to Target for an undisclosed sum.

The company also issued 1.3 million shares of preferred stock for proceeds of $31.3 million, closed on a $115 million seven-year term loan, and amended a $200 million revolving credit facility with a lower interest rate.

Revenue for the quarter jumped 10.9 percent, to $26.4 million, from $23.8 million during the same period in 2011. Kite attributed the gain to higher occupancy levels and the movement of some development projects into the company's operating portfolio. On a same-property level, revenues rose 5.4 percent compared to last year's first quarter.

Kite's first-quarter loss narrowed to $31,000, compared to a loss of $2.2 million during the same period a year earlier.

The litigation charge involved a dispute with a former tenant, which won an arbitration order for damages and attorney's fees. The company's filing does not name the tenant or the property.

Kite saw quarterly funds from operations, or FFO, of $7.9 million, or 11 cents per share, excluding the litigation charge, compared with $6.9 million, or 10 cents per share, during the same period last year. FFO is a common measure of REIT performance.

The company, which owns interests in 53 retail properties totaling 8.1 million square feet, said the properties were 93.4-percent leased as of March 31, 2012, compared with 92.3 percent as of March 31, 2011.

Kite reported its results after the market closed Thursday. Its shares finished the day down slightly, at $5.10 each.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our comment policy that will govern how comments are moderated.

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In