Daniel Propera's questions to KITE REALTY GROUP TRUST (KRG) leadership • Q3 2024
Question
Daniel Propera asked about the key variables Kite Realty looks for in a property that serve as predictors of high long-term growth, beyond just short-term gains.
Answer
CEO John Kite outlined a multi-faceted approach focused on the underlying quality of the real estate, the merchandising mix, the center type, and the ability to capture upside from rent rollovers in the near-to-medium term. He specifically mentioned analyzing renewal options to see if they are at fixed rates or fair market value. Kite also highlighted the role of KRG's operating platform in driving embedded growth, pointing to the 50 basis point year-over-year increase in annual growth for new small shop leases as a key indicator of this strategy's success.