Total Revenue

Increased 7% (from 207,439K USD to 221,762K USD)

Total revenue grew due to higher rental income and increased other property revenue. Q1 2025 rental income increased by approximately 13.4M USD and other property revenue by about 0.9M USD relative to Q1 2024, reflecting improved leasing performance and operational recovery compared to the prior period. " "

Operating Income

Increased 36% (from 39,425K USD to 53,777K USD)

Operating income surged as a result of revenue growth combined with controlled expense increases. The margin expansion reflects strong revenue performance—driven primarily by rental income gains—and operational efficiency improvements over Q1 2024. " "

Net Income

Increased 68% (from 14,436K USD to 24,264K USD)

Net income improved dramatically due to margin expansion and better expense management. Higher operating income, despite increased interest expenses, drove bottom-line improvements relative to Q1 2024, resulting in a notable net income uptick. " "

Rental Income

Increased 6.5% (from 205.8K USD to 219.172K USD)

Rental income improved given the recovery in base minimum rent and tenant reimbursement recoveries. This performance contrasts with previous period declines from properties sold or held for sale, leading to a net increase as operational properties delivered stronger income in Q1 2025. " "

Other Property Revenue

Increased 66% (from 1.3K USD to 2.165K USD)

Other property revenue jumped due to higher gains on land sales and improved property-related activities. Compared to Q1 2024, the significant increase reflects improved performance in ancillary revenue components. " "

Fee Income

Increased 42% (from 315K USD to 425K USD)

Fee income grew as a result of increased development fees and related service revenues. The Q1 2025 increase builds on a modest growth trend seen earlier, showing enhanced fee generation compared to Q1 2024. " "

Net Income per Common Share

Increased from 0.06 USD to 0.11 USD

The enhancement in net income per common share reflects the strong overall net income growth and margin expansion. Improved bottom-line performance and efficient cost management in Q1 2025 contributed to this near doubling of earnings per share relative to Q1 2024. " "

Cash and Cash Equivalents

Declined >60% (from 128,056K USD at Q4 2024 to 49,061K USD in Q1 2025)

Cash balances fell sharply due to significant financing outflows. Key factors include large debt repayments (e.g., a 350M USD principal repayment), property acquisition expenditures, and negative net financing activities that outweighed operating cash inflows, marking a substantial liquidity compression relative to the prior period. " "

NAREIT FFO per share

FY 2025

$2.02 to $2.08 per share "

Raised by $0.02 at the midpoint (implying a shift upward from the previous range) " "

raised

Core FFO per share

FY 2025

$1.98 to $2.04 per share "

Raised by $0.02 at the midpoint (implying a shift upward from the previous range) " "

raised

Same-Property NOI

FY 2025

1.75% growth "

Unchanged from original guidance "

no change

General Bad Debt Reserve

FY 2025

85 basis points of total revenues "

Increased midpoint by 15 basis points to 100 basis points of total revenues "

raised

Anchor Bankruptcy Reserve

FY 2025

110 basis points of total revenues "

Decreased by 15 basis points to 95 basis points of total revenues "

lowered

Net Interest Expense

FY 2025

$122 million "

Sequential increase driven by the acquisition of Legacy West "

raised

Termination Fees

FY 2025

no prior guidance

$0.02 more of termination fees included compared to FY 2024 "

no prior guidance

Land Sale Gain

FY 2025

no prior guidance

Included in guidance for the balance of FY 2025 "

no prior guidance

Occupancy

FY 2025

no prior guidance

Not specifically guided; noted it will dip due to bankruptcies then increase as backfills occur "

no prior guidance

Joint Venture Fees

FY 2025

no prior guidance

Fees from the GIC joint venture described as "market" with no specific figures disclosed "

no prior guidance

Credit Disruption Assumption

FY 2025

no prior guidance

195 basis points of total revenues "

no prior guidance

Lease Performance and Occupancy Trends

Q4 2024: Emphasis on strong leasing metrics with high blended spreads and competitive rent bumps. " " Q3 2024: Reported record leasing volumes and improved occupancy through elevated small shop and anchor performance. " " Q2 2024: Noted sequential lease rate increases and steady occupancy trends. "

Q1 2025: Highlighted higher weighted average rent bumps (360 basis points), elevated non-option renewal spreads (20%), and strong starting rents; occupancy remains robust with some caution due to bankruptcies. " " "

Consistent focus on enhancing lease performance. The sentiment remains bullish with continually improving rent metrics and strategic tenant engagement, though some caution is present around occupancy due to bankruptcies.

Leasing Pipeline and Backfill Challenges

Q4 2024: Discussed challenges from tenant bankruptcies impacting backfill, with elevated leased-to-occupied spreads. " Q3 2024: Reported high volume leasing and a strong signed-not-open pipeline with active backfilling efforts. " " Q2 2024: Emphasized resilience in the SNO pipeline and consistent backfill progress despite longer timelines for anchor openings. " " "

Q1 2025: Demonstrated a robust leasing pipeline with healthy small shop demand and proactive backfill strategies, even as lease losses from bankruptcies are acknowledged. " " "

Improving pipeline metrics overall, with persistent challenges from bankruptcies. The sentiment is cautiously optimistic as operational efforts continue to bridge occupancy gaps while maintaining strong leasing momentum.

Financial Strength, Liquidity, and Leverage Management

Q4 2024: Maintained a strong balance sheet with a net debt-to-EBITDA of 4.7x and over $1.2 billion liquidity. " " Q3 2024: Reiterated robust liquidity with low leverage (4.9x) and extended revolving credit options. " " Q2 2024: Noted the lowest-ever leverage (4.8x) with nearly $1.3 billion liquidity and a credit rating upgrade. " "

Q1 2025: Continued to emphasize an "incredibly strong balance sheet" with funding for acquisitions (e.g. Legacy West via revolving credit) and active asset sales; leverage remains comfortably within target ranges. " "

Stable and robust financial profile. Consistent messaging on strong liquidity and disciplined leverage supports strategic opportunities. The tone is confidently bullish, enabling opportunistic capital deployment without compromising financial stability.

Acquisition Strategies and Capital Deployment

Q4 2024: Focus on acquiring quality assets (e.g. City Center) with an emphasis on capital recycling and matching acquisitions with dispositions. " " Q3 2024: Cautious but opportunistic approach, leveraging a strong balance sheet to pursue high-quality assets. " " " Q2 2024: Maintained a balanced, “pod‐based” approach to acquisitions and disposals. " " "

Q1 2025: Centered on the strategic Legacy West acquisition through a joint venture with GIC, reflecting a shift toward mixed‐use and higher‐quality assets, coupled with discussions on portfolio reshaping. " " "

Transition toward higher‐quality, mixed‐use acquisitions. The strategy has evolved to favor strategic, joint-venture–backed opportunities while maintaining disciplined capital allocation. The sentiment is opportunistic and forward-looking, aiming to enhance long-term growth.

Rental Growth and Lease Rate Increases

Q4 2024: Reported weighted average rent bumps of 290 basis points with 4%+ escalations in a majority of leases. " " Q3 2024: Described a 100 basis point increase in small shop lease rates and a 3.5% average annual growth. " " Q2 2024: Noted an 80 basis point sequential increase in lease rates and 3.4% annual growth with high fixed rent bumps. " " "

Q1 2025: Showed even higher metrics with 360 basis point rent bumps, nearly 20% higher starting rents, and significantly elevated non-option renewal spreads, indicating strong rental momentum. " " "

Acceleration in rental growth. The evolving metrics suggest an increasingly bullish outlook on fee and rent escalation trends, with Q1 2025 evidencing improved leasing rates over prior quarters.

Credit Risk and Bad Debt Concerns

Q4 2024: Addressed tenant bankruptcies causing short-term disruptions; maintained conservative bad debt assumptions and strategies to improve portfolio quality. " " " Q3 2024: Reported better-than-expected bad debt performance with no major concerns. " " Q2 2024: Highlighted effective management of bad debt with low exposure to watch-list tenants. " "

Q1 2025: Adjusted the general bad debt reserve upward slightly (to 100 bps) while lowering the anchor bankruptcy reserve (to 95 bps), reflecting proactive adjustments amid economic uncertainty while overall risk remains contained. " "

Marginally more conservative, yet controlled, risk management. Adjustments in Q1 2025 reflect an awareness of broader economic uncertainties without indicating a severe deterioration in tenant credit quality.

Dependence on Termination Fees

Not mentioned in prior periods.

Q1 2025: Highlighted as a recurring but unpredictable element, contributing $0.03 per share to FFO and incorporated into guidance adjustments. " " "

Emerging topic in Q1 2025. Its appearance as a notable revenue contributor suggests increased attention to non-recurring fee income, though the sentiment remains neutral and pragmatic given inherent unpredictability.

Exposure to Volatile Capital Markets and Competitive Acquisition Environment

Q4 2024: Acknowledged market volatility and competitive pressures, with a focus on executing accretive acquisitions amid fluctuating equity costs. " " Q3 2024: Emphasized strengthened liquidity through bond issuance and extended credit facilities, mitigating market risk. " " Q2 2024: Noted strong liquidity and real‑time cap rate compression in competitive contexts. " "

Q1 2025: Addressed indirectly by noting a healthy acquisition market with strong demand and competitive financing conditions, supported by liquidity and disciplined capital strategies. " " "

Consistent cautious optimism. While market volatility is acknowledged across periods, KRG’s strong financial positioning and disciplined strategy allow it to navigate competitive environments effectively.

Strategic Partnerships and Joint Ventures

Q4 2024: Briefly noted in relation to the One Loudoun expansion with joint venture partners. " Q3 & Q2 2024: No mention.

Q1 2025: Emphasized a major joint venture with GIC for the Legacy West acquisition, highlighting proactive partnership formation and potential for future expanded collaborations. " " "

Increasing emphasis. The strategic use of joint ventures in Q1 2025—after limited discussion previously—signals a growing reliance on partnerships to access high-quality assets and diversify risk, marking a strategic evolution.

Portfolio Optimization and Asset Dispositions

Q2 2024: Discussed the sale of Ashland & Roosevelt, with proceeds redeployed into more attractive grocery-anchored centers; maintained a balanced approach in “pods”. " " " Q3 2024: Addressed disciplined dispositions and maintenance of a balanced asset mix. " " Q4 2024: Focused on capital recycling, the City Center sale, and quality enhancement of the portfolio. " " " "

Q1 2025: Focused on portfolio repositioning with debates between asset dispositions versus reinvestment into higher-quality, mixed‑use assets like Legacy West; indicated an ongoing strategy to repatriate cash and optimize asset quality. " " "

Consistent portfolio optimization. The strategy continues to emphasize disposing of non-core assets and reallocating capital into higher-growth opportunities, with Q1 2025 reinforcing a pivot toward quality and mixed‑use assets, supporting long‑term cash flow and growth improvements.