Citi lowers Kite Realty Group stock price target to $28 on retail sector risks

Published 07/07/2025, 16:38
Citi lowers Kite Realty Group stock price target to $28 on retail sector risks

Investing.com - Citi maintained its Buy rating on Kite Realty Group (NYSE:KRG), a $5.1 billion market cap retail REIT currently trading at $22.82, while lowering its price target to $28.00 from $31.00, citing increased risk factors affecting retail properties.

The price target reduction reflects Citi’s application of a lower multiple of 19x 2025 estimated AFFO, down from the previous 21x multiple, according to the research note issued Monday. The company maintains a solid 4.68% dividend yield and has maintained dividend payments for 22 consecutive years, as noted by InvestingPro.

Citi pointed to "increased risk premia around retail names" as the primary reason for the adjustment, specifically highlighting "heightened uncertainty associated with tariffs and tenant credit" in the retail sector. According to InvestingPro’s analysis, KRG maintains a GOOD financial health score, with liquid assets exceeding short-term obligations.

Despite the lower price target, Citi revised its 2025 FFO estimate upward to $2.08 from $2.06, suggesting some positive adjustments to forward expectations for the real estate investment trust.

The firm’s analysis incorporates recent results from Kite Realty Group alongside its revised outlook for the company’s future performance in the current retail environment.

In other recent news, Kite Realty Group Trust reported a strong first quarter for 2025, exceeding earnings expectations. The company posted earnings per share of $0.11, surpassing the forecasted $0.0739, and revenue reached $219.17 million, exceeding the anticipated $211.56 million. Kite Realty Group also announced the pricing of $300 million in senior notes at a 5.2% interest rate, with proceeds intended for debt repayment and general corporate purposes. Additionally, the company successfully acquired Legacy West, enhancing its portfolio with high-quality lifestyle and mixed-use assets. KeyBanc Capital Markets reiterated its Overweight rating on Kite Realty Group, citing the acquisition and potential growth opportunities with GIC as positive factors. Meanwhile, UBS initiated coverage with a Neutral rating, noting the company’s strategic shift towards smaller centers and reduced exposure to larger anchor-heavy power centers. These developments highlight Kite Realty’s strategic maneuvers and financial performance in recent months.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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