Kite Realty prices $350 million senior notes offering

INDIANAPOLIS - Kite Realty Group Trust (NYSE: NYSE:KRG), a real estate investment trust, has priced a public offering of $350 million in senior notes on Tuesday, the company announced. The 4.950% Senior Notes, due in 2031, will be issued at 99.328% of their par value, yielding a maturity of 5.062%.

The notes are slated for semi-annual interest payments on June 15 and December 15, starting this year on December 15. The closing of the offering is anticipated on Thursday, subject to customary conditions.

Kite Realty Group's operating partnership plans to allocate the net proceeds to repay existing debt and for general corporate purposes. A consortium of banks, including Wells Fargo Securities, BofA Securities, and others, managed the book-running, with additional financial institutions acting as co-managers.

Kite Realty Group specializes in owning and operating open-air shopping centers and mixed-use assets, with a focus on high-growth Sun Belt and select strategic gateway markets. As of June 30, 2024, the trust held interests in 178 properties, comprising around 27.6 million square feet of leasable space.

In other recent news, Kite Realty Group Trust demonstrated a strong performance in its Q2 2024 earnings report. The company reported its lowest leverage levels historically, with a net debt-to-EBITDA ratio of 4.8 times and a credit rating upgrade to BBB. KRG's available liquidity stands at $1.3 billion, covering all debt maturities through 2026. Additionally, the company noted an increase in lease rates and a year-over-year dividend hike of 8.3%.

Earnings per share for the quarter were reported at $0.53 of NAREIT FFO, and KRG raised its 2024 FFO guidance to $2.04 - $2.08 per share. The company anticipates a moderation of same-property NOI growth in Q3, followed by acceleration in Q4. KRG also sold a non-core asset, Ashland (NYSE:ASH) & Roosevelt, for $31 million and plans to reinvest in a grocery-anchored center in the southeast.

InvestingPro Insights

As Kite Realty Group Trust (NYSE: KRG) moves forward with its public offering of senior notes, investors are keeping a close eye on the company's financial health and market performance. According to InvestingPro data, KRG currently boasts a market capitalization of $5.45 billion. While the company has experienced a modest revenue growth of 0.84% over the last twelve months as of Q2 2024, its gross profit margin stands impressively at 74.42%, indicating strong operational efficiency.

InvestingPro Tips highlight that Kite Realty Group has a commendable track record of maintaining dividend payments for 21 consecutive years, which speaks to its commitment to shareholder returns. Moreover, the company has raised its dividend for 4 consecutive years, reinforcing its position as a potentially attractive option for income-focused investors. With a dividend yield of 4.31% as of the latest data, KRG demonstrates its ability to provide consistent income streams.

Investors interested in KRG's dividend history and financial performance can find additional InvestingPro Tips by visiting https://www.investing.com/pro/KRG, where several more tips are available to help make informed investment decisions.

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