Kite takes quarterly loss, matches FFO expectations

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Kite Realty Group Trust reported a loss in the third quarter while meeting Wall Street expectations in a key industry performance measure.

The Indianapolis-based real estate investment trust on Thursday said it lost $1.7 million, or 2 cents per share, in the latest quarter, down from $412,000, or less than 1 cent per share, in the same quarter of 2015.

Kite reported funds from operations of $44.7 million, or 52 cents per share, in the period, compared with $43.9 million, or 51 cents per share, a year ago.

FFO is a closely watched measure in the REIT industry that takes net income and adds back items such as depreciation and amortization.

The FFO figure matched the average estimate of nine analysts surveyed by Zacks Investment Research.

The real estate investment trust posted revenue of $89.1 million in the period, up from $87.1 million last year. Five analysts surveyed by Zacks expected $88.2 million in revenue.

Kite said it expects full-year FFO in the range of $2.05 to $2.07 per share, a change from a previous prediction of $2.04 to $2.08.

During the quarter, the company completed an inaugural $300 million public bond offering of 4 percent senior notes due in 2026. The majority of the net proceeds from the offering were used to repay a $200 million term loan maturing July 1, 2019.

As of Sept. 30, Kite owned interests in 121 operating, development and redevelopment properties totaling about 24 million square feet. The owned gross leasable area in the company’s retail operating portfolio was 95.2 leased.

Kite executed leases on 110 individual spaces for a total of 627,925 square feet during the quarter.

Shares in Kite closed at $24.71 each Thursday, down about 5 percent since the beginning of the year.

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