1. Kite Realty sold eight large-format centers for $429 million. 2. Proceeds will fund acquisitions, share buybacks, and debt reduction. 3. Share repurchases have occurred at significant discounts to NAV. 4. 2025 Same Property NOI growth guidance increased by 30 basis points. 5. CEO emphasizes focus on improving cash flow and reducing at-risk tenancy.
The strategic asset sales and focus on shareholder returns suggest a positive outlook. Historical trends show REITs performing better after significant asset reconfigurations.
The article discusses significant corporate actions that will directly enhance shareholder value and potentially stabilize stock price amid market fluctuations.
Immediate cash flows from dispositions will support share repurchases and dividends. Current market sentiments favor firms that actively manage their assets for growth.
INDIANAPOLIS, Dec. 08, 2025 (GLOBE NEWSWIRE) -- Kite Realty Group (NYSE:KRG), a premier owner and operator of high-quality, open-air grocery-anchored centers and vibrant mixed-use assets, today announced that the Company closed on the disposition of a portfolio that includes eight large-format power and community centers for gross proceeds of $429.0 million.
Large-Format Power and Community Centers List:
| Property | Center Classification | MSA | Total Owned GLA | |||
| Belle Isle Station | Power | Oklahoma City | 196,158 | |||
| Central Texas Marketplace | Power | Waco | 429,653 | |||
| International Speedway Square | Power | Daytona Beach | 240,251 | |||
| Pavilion at King's Grant | Power | Charlotte | 303,212 | |||
| Peoria Crossing | Power | Phoenix | 238,004 | |||
| Portofino Shopping Center | Power | Houston | 370,196 | |||
| Shops at Park Place | Community | Dallas / Fort Worth | 137,605 | |||
| Watauga Pavilion | Power | Dallas / Fort Worth | 205,643 | |||
| 2,120,722 | ||||||
Additionally, on November 20, 2025, the Company closed on the sale of Paradise Valley Marketplace (Phoenix MSA) for gross proceeds of $45.0 million.
The proceeds from these dispositions are expected to be allocated to a combination of 1031 acquisitions, additional share repurchases, debt reduction, and a potential special dividend. The Company has repurchased 3.8 million shares of common stock since the third quarter earnings call held on October 30, 2025, at a volume-weighted average price of $22.49 per share, for $86.1 million. Year-to-date, the Company has repurchased 7.2 million shares of common stock, at a volume-weighted average price of $22.42 per share, for $161.1 million, which represents a 21.5% discount to consensus net asset value per share, as of December 5, 2025.
"The sale of the larger-format assets is a decisive step in advancing our long-term portfolio strategy of improving our embedded growth profile, reducing exposure to at-risk tenancy, and strengthening the durability and resilience of our cash flows," said John A. Kite, Chairman and Chief Executive Officer. "The blended cap rate on these transactions is below the implied yield at which our stock currently trades, presenting a clear and compelling arbitrage opportunity to repurchase shares. We will continue to evaluate market conditions as we deploy the remaining proceeds, and we remain firmly committed to mitigating the earnings impact and maintaining net debt to EBITDA in the low-to-mid 5.0x range."
Please note the following implications associated with these dispositions:
About Kite Realty Group
Kite Realty Group (NYSE:KRG), a real estate investment trust (REIT), is a premier owner and operator of open-air shopping centers and mixed-use assets. The Company's primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets, makes the KRG portfolio an ideal platform for both retailers and consumers. Publicly listed since 2004, KRG has over 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of September 30, 2025, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 29.7 million square feet of gross leasable space. For more information, please visit kiterealty.com.
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Safe Harbor
This release, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements.
Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to: economic, business, banking, real estate and other market conditions, particularly in connection with low or negative growth in the U.S. economy as well as economic uncertainty (including from an economic slowdown or recession, federal government shutdown, disruptions related to tariffs and other trade or sanction issues, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending); financing risks, including the availability of, and costs associated with, sources of liquidity; the Company's ability to refinance, or extend the maturity dates of, the Company's indebtedness; the level and volatility of interest rates; the financial stability of the Company's tenants; the competitive environment in which the Company operates, including potential oversupplies of, or a reduction in demand for, rental space; acquisition, disposition, development and joint venture risks; the Company's ability to execute larger-format asset sales in a manner that advances the Company's embedded growth profile, reduces exposure to at-risk tenancy and strengthens cash flows; the Company's ability to allocate the proceeds from asset sales as expected; property ownership and management risks, including the relative illiquidity of real estate investments, and expenses, vacancies or the inability to rent space on favorable terms or at all; the Company's ability to maintain the Company's status as a real estate investment trust for U.S. federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; the attractiveness of our properties to tenants, the actual and perceived impact of e-commerce on the value of shopping center assets, and changing demographics and customer traffic patterns; business continuity disruptions and a deterioration in our tenants' ability to operate in affected areas or delays in the supply of products or services to us or our tenants from vendors that are needed to operate efficiently, causing costs to rise sharply and inventory to fall; risks related to our current geographical concentration of properties in the states of Texas, Florida, and North Carolina and the metropolitan statistical areas of New York, Atlanta, Seattle, Chicago, and Washington, D.C.; civil unrest, acts of violence, terrorism or war, acts of God, climate change, epidemics, pandemics, natural disasters and severe weather conditions, including such events that may result in underinsured or uninsured losses or other increased costs and expenses; changes in laws and government regulations, including governmental orders affecting the use of the Company's properties or the ability of its tenants to operate, and the costs of complying with such changed laws and government regulations; possible changes in consumer behavior due to public health crises and the fear of future pandemics; our ability to satisfy environmental, social or governance standards set by various constituencies; insurance costs and coverage, especially in Florida and Texas coastal areas and North Carolina; risks associated with cyber attacks and the loss of confidential information and other business disruptions; risks associated with the use of artificial intelligence and related tools; other factors affecting the real estate industry generally; and other risks identified in reports the Company files with the Securities and Exchange Commission or in other documents that it publicly disseminates, including, in particular, the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in the Company's quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Contact Information: Kite Realty Group
Tyler Henshaw
SVP, Capital Markets & Investor Relations
317.713.7780
thenshaw@kiterealty.com
