Kite Realty Group Trust Announces Third Quarter 2008 Financial Results

Business Wire, Nov 5, 2008

Redevelopment Activities

During the third quarter, the Company added two properties to its redevelopment portfolio, Courthouse Shadows in Naples, Florida and Four Corner Square in Seattle, Washington. The Courthouse Shadows project involves the re-tenanting by Publix Supermarket of the former Albertson's space and a related renovation of the entire center. At Four Corner Square, the Company is renovating a portion of the existing shopping center as part of a larger development which is anticipated to be anchored by a 60,000 square foot home improvement store and a Walgreens.

Leasing Activities

In the quarter, the Company executed 16 new and renewal leases for a total of 93,000 square feet. A total of 11 leases for 75,000 square feet of previously unoccupied space were executed with initial rental rates approximately 43% above the operating portfolio averages. The Company executed 5 new leases and renewals for 18,000 square feet of previously occupied space.

For the nine months ended September 30, 2008, the Company executed a total of 32 leases for 308,000 square feet of previously unoccupied space with initial rental rates approximately 52% above the operating portfolio averages. For the same period, the Company also executed a total of 19 new and renewal leases for 44,000 square feet of previously occupied space with initial rental rates approximately 8.1% above the previous rent payable for such space.

Distributions

On August 5, 2008, the Board of Trustees declared a regular quarterly cash distribution of $0.205 per common share for the quarter ended September 30, 2008 to shareholders and unit holders of record as of October 7, 2008. This distribution was paid on October 17, 2008.

On November 4, 2008, the Board of Trustees declared a regular quarterly cash distribution of $0.205 per common share for the quarter ended December 31, 2008 to shareholders and unit holders of record as of January 7, 2009. The declared distribution remained unchanged from the previous quarter and will be paid on or about January 16, 2009.

Appointment of Board Member

Darell E. "Gene" Zink, Jr. was appointed to the Company's Board of Trustees on November 3, 2008. Mr. Zink is Chairman and CEO of Strategic Capital Partners, LLC, a privately-held real estate investment management firm. Prior to founding this company, he spent 26 years with Duke Realty Corporation, an $8 billion real estate investment trust (DRE:NYSE) specializing in industrial, office and retail properties. During his tenure with Duke Realty, Mr. Zink served in various positions, most recently as its CFO, Executive Vice President and Vice Chairman of the Company. He retired from Duke Realty in 2004.

Earnings Guidance

The Company is revising its earnings and FFO guidance for the year ending December 31, 2008 to a range of $1.18 to $1.22 per diluted common share. This change primarily reflects the effects of the October offering of 4,750,000 common shares and the removal of the sale of a land parcel due to current market conditions.