Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowShares of Kite Realty Group Trust dropped in after-hours
trading yesterday after the Indianapolis-based real estate investment trust said
it expects 2009 funds from operations between 65 cents to 72 cents per share,
which is below its prior guidance.
On May 7, the company had forecast funds from operations between 83 cents and
93 cents per share. Analysts surveyed by Thomson Reuters have forecast full-year
FFO of 84 cents per share, on average.
Funds from operations, or FFO, adds such items as amortization and
depreciation to net income. It is considered a key measure of REIT strength
because it gives a more accurate picture of cash performance.
The company said it updated its guidance to give effect to a stock offer it
launched. Kite said it has launched an underwritten public offering of 25
million shares of beneficial interest. The offering has an overallotment option
for 3.75 million additional shares.
Kite said it plans to use the proceeds from the offering to repay debt and
for working capital and other general corporate purposes.
Shares fell 49 cents, or 12.3 percent, to $3.51 in after-hours trading. The
stock had closed down 11 cents, to $4, in the regular session before the outlook
and offering were announced.
Please enable JavaScript to view this content.