8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(D) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 17, 2005

KITE REALTY GROUP TRUST

(Exact name of registrant as specified in its charter)

Maryland	1-32268		11-3715772
(State or other jurisdiction of incorporation)	(Commission File Number)		(IRS Employer Identification Number)
30 S. Meridian Street
Suite 1100
Indianapolis, IN		46204
(Address of principal executive offices)		(Zip Code)
(317) 577-5600
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.Results of Operations and Financial Condition.

On February 17, 2005, Kite Realty Group Trust (the “Company”) announced its consolidated financial results for the quarter and year ended December 31, 2004.  A copy of the Company’s earnings press release is furnished as Exhibit 99.1 to this report on Form 8-K.  A copy of the Company’s Fourth Quarter Supplemental Disclosure is furnished as Exhibit 99.2 to this report on Form 8-K.  The information contained in Item 2.02 of this report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

Item 9.01.Financial Statements and Exhibits.

(a)Not applicable.

(b)Not applicable.

(c)Exhibits.

Exhibit No.	Description
99.1	Kite Realty Group Trust Earnings Press Release dated February 17, 2005
99.2	Kite Realty Group Trust Fourth Quarter Supplemental Disclosure

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KITE REALTY GROUP TRUST
Date: February 17, 2005	By:	/s/ Daniel R. Sink
		Daniel R. Sink
		Senior Vice President, Chief Financial Officer and Treasurer

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EXHIBIT INDEX

Exhibit	Document
99.1	Kite Realty Group Trust Earnings Press Release dated February 17, 2005
99.2	Kite Realty Group Trust Fourth Quarter Supplemental Disclosure

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EX-99.1

Exhibit 99.1

PRESS RELEASE

Contact:	Investors/Media:
Kite Realty Group Trust	The Ruth Group
Dan Sink	Stephanie Carrington / Jason Rando
Chief Financial Officer	(646) 536-7017 / 7025
(317) 577-5609	scarrington@theruthgroup.com
dsink@kiterealty.com	jrando@theruthgroup.com

Kite Realty Group Trust Announces

Fourth Quarter Financial Results

– Declares First Quarter 2005 Dividend –

Fourth Quarter 2004 Highlights

•Funds from Operations reached $0.27 per diluted share

•Total revenues for the quarter increased to $22.5 million – up 143% year-over-year

•Two acquisitions closed for an aggregate purchase price of $38.0 million

•Retail operating portfolio occupancy rate at 95.3%

Indianapolis, IN, February 17, 2005 – Kite Realty Group Trust (NYSE: KRG) (“the Company”) announced today results for its fourth quarter ended December 31, 2004.

Financial statements and exhibits incorporated into this release include the results of the Company since completion of its initial public offering (“IPO”) on August 16, 2004, the combined results of the Company and Kite Property Group, the Company’s predecessor, (“the Predecessor”) for the year ended December 31, 2004, and the results of the Predecessor prior to August 16, 2004.  Internally, the Company uses this combined reporting to evaluate its operating performance and believes that this presentation will provide investors with additional insight into its financial results.

Financial and Operating Results

For the three months ended December 31, 2004, funds from operations (FFO), a widely accepted supplemental measure of REIT performance established by the National Association of Real Estate Investment Trusts, for the Kite portfolio was $7.4 million, or $0.27 per diluted share, compared to $2.1 million for the Predecessor for the same period in the prior year.

For the twelve months ended December 31, 2004, combined FFO for the Kite portfolio was $11.9 million (which includes one-time charges of approximately $2.2 million related to the expenses associated with the Company’s IPO and related formation transactions), a 51% increase over $7.9 million for full year 2003 FFO.  The Company’s allocable share of combined FFO was $8.0 million (net of the Company’s allocable share of one-time charges mentioned previously, or approximately $1.5 million)

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for the twelve months ended December 31, 2004 compared with $4.7 million for the same period the prior year.

Given the nature of the Company’s business as a real estate owner and operator, the Company believes that FFO is helpful to investors as a starting point in measuring operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating performance, such as gains (or losses) from sales of properties and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. A reconciliation of net income to FFO is included in the attached table.

The Company’s total revenue for the fourth quarter of 2004 increased 143% to $22.5 million from $9.3 million for the Predecessor for the same period in 2003.  Other property related revenue in 2004 includes a $1.1 million gain on the sale of an outparcel as part of a recurring business strategy.  The Company’s net income for the fourth quarter of 2004 was $821,475, a 193% increase over the Predecessor’s fourth quarter 2003 net income of $280,107.

Combined total revenue for the twelve months ended December 31, 2004 increased 77% to $49.1 million from $27.8 million for the Predecessor for the same period in 2003.  Combined net loss for the twelve months ended December 31, 2004 was $524,702 (including one-time IPO charges allocable to the Company of $1.5 million) compared to the Predecessor’s net income of $1.4 million for the same period in 2003.

John A. Kite, President and Chief Executive Officer, said, “We are pleased with the solid performance of our portfolio during the fourth quarter which drove our strong FFO and revenue growth.  We continue to strengthen our tenant base as evidenced by the higher occupancy across the portfolio and the continued lease-up of our two largest development properties.  Our strategy in 2005 includes a strong focus on the replenishment of our development pipeline, continued acquisitions in key operating markets and utilizing joint ventures to facilitate future growth. We believe the strength of our portfolio and our visibility as a proven acquirer and developer position us for continued portfolio growth in 2005 and beyond.”

Property Portfolio

At December 31, 2004, the Company owned interests in 30 retail operating properties and nine retail development properties, totaling 4.6 million square feet and 1.3 million square feet respectively.  Occupancy of the retail operating portfolio at year end was 95.3%.  The Company also owned six commercial operating properties with 662,652 square feet.  Occupancy of the commercial operating portfolio was 97.7%.

On February 9, 2005, the Company announced the acquisition of Fox Lake Crossing, a neighborhood shopping center located at the northwest corner of Route 12 and Route 34 in Fox Lake, IL, for approximately $12.3 million in assumed debt and approximately $3.2 million in cash. The Company also purchased approximately 16 acres of contiguous

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raw land that includes two outlots zoned for retail development for approximately $2.8 million in cash, excluding a tax-increment financing (TIF) receivable for $1.5 million.  Developed in 2002, the center is attractively situated in a growing community in the northwestern part of the Chicago trade area. The Dominick’s anchored center has approximately 99,100 square feet of leaseable area and is currently 94% occupied by a variety of national and local tenants, including a 6,100 square foot Hollywood Video.

Joint Venture Activity

On January 11, 2005, the Company acquired 33 acres of undeveloped land in Estero, FL in its second joint venture with Continental Real Estate Companies (Miami, FL) for a cash purchase price of $10 million.   The property is located at the southeast corner of Three Oaks Parkway and Corkscrew Road and is currently zoned to permit a retail development of up to 200,000 square feet. The parties in the joint venture are actively pursuing national anchor tenants for the location.

Acquisition and Disposition Activities

During the quarter ended December 31, 2004, the Company completed two acquisitions as summarized below:

•On December 1, acquired Eastgate Pavilion community shopping center in Cincinnati, OH for a total cash purchase price of $27.5 million; and

•On December 20, acquired Four Corner Square neighborhood shopping center in Maple Valley, WA (Seattle, MSA) for a total cash purchase price of $10.5 million.

Development Activities

During the fourth quarter, 82^nd Otty, a 10,000 square foot retail property in Portland, Oregon was completed and added to the operating portfolio.

As of December 31, 2004, the Company had nine retail properties under development that represented an aggregate of 1.3 million square feet, of which a total of 560,300 square feet will be owned by the Company and the remainder will be owned by anchor tenants upon completion of the development.  The total estimated cost for these properties is approximately $102.3 million, of which approximately $82.7 million had been incurred as of December 31, 2004.

Two of the Company’s retail properties that were under development as of September 30, 2004 became partially operational in October 2004:

•Traders Point, a 366,377 square foot (including 81,377 square feet of non-owned anchor and outlot space) upscale community shopping center located in Indianapolis, Indiana, is currently approximately 77% leased to a number of

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retailers and restaurants in addition to the anchor tenants. Tenants leasing approximately 204,400 square feet of space currently are open for business.

•Cool Creek Commons, a 138,000 square foot (including 12,200 square feet of non-owned outlot space) upscale neighborhood shopping center located in a northern suburb of Indianapolis, Indiana, is currently approximately 80% leased to a mix of restaurants and traditional retailers. Tenants leasing approximately  88,300 square feet of space currently are open for business.

As of September 30, 2004, the Company had one commercial property under development.  This 115,000 square foot property, which is 100% leased, became operational on November 1, 2004.

Dividend

On December 17, 2004, the Board of Trustees declared a quarterly cash dividend of $0.1875 per common share for the period ending December 31, 2004.  The dividend was paid on January 18, 2005 to shareholders of record on January 4, 2005.  This quarterly dividend of $0.1875 per common share is equivalent to $0.75 per common share on an annualized basis.

In addition, on February 10, 2005, the Board of Trustees declared a quarterly cash dividend of $0.1875 per common share for the period ending March 31, 2005 to shareholders of record on April 5, 2005, payable on April 19, 2005.

2005 Guidance

Given the current economic outlook and the Company’s assessment of various factors likely to affect operating performance, the Company anticipates 2005 FFO per share to be in the range of $1.15 per diluted share to $1.25 per diluted share.

Management will address certain assumptions underlying the estimate on the Company’s earnings conference call.  The following is a reconciliation of the calculation of net income per share to FFO per share:

Guidance Range for 2005	Low		High
Net income per share	$	0.45	$	0.55
Depreciation and amortization of consolidated entities		0.69		0.69
Depreciation and amortization of unconsolidated entities	0.01		0.01
Funds From Operations	$	1.15	$	1.25

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Earnings Conference Call

Management will host a conference call on Friday, February 18, 2005 at 12:00 p.m. ET to discuss fourth quarter and full year 2004 financial results and provide financial guidance for 2005.  A live Web cast of the conference call will be available online on the Company’s corporate Web site at http://www.kiterealty.com.  The dial-in numbers are (877) 407-8035 for domestic callers, and (201) 689-8035 for international callers.  After the live Web cast, the call will remain available on Kite Realty Group’s Web site through May 18, 2005.  In addition, a telephonic replay of the call will be available until March 4, 2005.  The replay dial-in numbers are (877) 660-6853 for domestic callers and (201) 612-7415 for international callers.  Please use account number 1628 and reservation code 136307 for the telephonic replay.

About Kite Realty Group Trust

Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust focused primarily on the development, construction, acquisition, ownership and operation of high quality neighborhood and community shopping centers in selected growth markets in the United States. The Company owns interests in a portfolio of operating retail properties, retail properties under development, operating commercial properties, a related parking garage, commercial property under development and parcels of land that may be used for future development of retail or commercial properties.  Kite Realty Group owns interests in 37 operating properties totaling 5.3 million square feet and in 9 properties under development representing 1.3 million square feet.

Safe Harbor

Certain statements in this document that are not historical fact may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including without limitation: national and local economic, business, real estate and other market conditions; the ability of tenants to pay rent; the competitive environment in which the Company operates; financing risks; property management risks; the level and volatility of interest rates; financial stability of tenants; the Company’s ability to maintain its status as a REIT for federal income tax purposes; acquisition, disposition, development and joint venture risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, which discuss these and other factors that could adversely affect the Company’s results.  The Company undertakes no obligation to publicly update or revise these forward-looking statements (including the FFO estimate), whether as a result of new information, future events or otherwise.

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Kite Realty Group Trust and

Kite Property Group (Predecessor)

Condensed Consolidated and Combined Balance Sheets

As Of December 31, 2004 and 2003

	Kite Realty Group Trust December 31, 2004			Kite Property Group December 31, 2003
Assets:
Investment properties, at cost:
Land	$	115,806,345		$	19,319,563
Land held for development	10,454,246			7,137,095
Buildings, improvements and equipment	370,630,075			78,673,523
Construction in progress	52,485,321			48,681,767
	549,375,987			153,811,948
Less: accumulated depreciation	(24,133,716		)	(4,465,775		)
	525,242,271			149,346,173
Cash and cash equivalents	10,103,176			2,189,478
Tenant receivables, including accrued straight-line rent	5,763,831			1,520,487
Investments in unconsolidated entities, at equity	155,495			2,136,158
Other assets	28,490,060			16,143,410
Total Assets	$	569,754,833		$	171,335,706
Liabilities and Shareholders’ Equity and Owners’ Equity:
Mortgage and other indebtedness	$	283,479,363		$	141,498,289
Cash distributions and losses in excess of net investment in unconsolidated entities, at equity	837,083			2,864,690
Minority interest	59,735			1,137,914
Other liabilities	58,756,379			20,277,304
Total liabilities	343,132,560			165,778,197
Limited Partners’ interests in operating partnership	68,423,213			—
Shareholders’ Equity and Owners’ Equity:
Shareholders’ equity	158,199,060			—
Owners’ equity	—			5,557,509
Total Shareholders’ Equity and Owners’ Equity	158,199,060			5,557,509
Total Liabilities and Shareholders’ Equity and Owners’ Equity	$	569,754,833		$	171,335,706

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Kite Realty Group Trust and

Kite Property Group (Predecessor)

Condensed Consolidated and Combined Statements of Operations

Three months Ended December 31

	Kite Realty Group Trust			Kite Property Group
	For the Three Months Ended
	December 31, 2004			December 31, 2003
Revenue:
Minimum rent	$	11,152,243		$	3,107,293
Tenant reimbursements	1,871,803			388,170
Other property related revenue	2,014,392			528,158
Construction and service fee revenue	7,471,746			5,137,279
Other income	13,526			124,865
Total revenue	22,523,710			9,285,765
Expenses:
Property operating	2,596,286			954,586
Real estate taxes	1,230,030			327,105
Cost of construction and services	6,938,833			3,254,885
General, administrative, and other	1,200,641			1,803,666
Depreciation and amortization	6,176,751			748,661
Total expenses	18,142,541			7,088,903
Operating income	4,381,169			2,196,862
Interest expense	3,186,662			1,215,961
Minority interest income	(102,150		)	(240,113		)
Equity in earnings of unconsolidated entities	81,183			(460,681		)
Limited partners’ interest in operating partnership	(352,065		)	—
Net income	$	821,475		$	280,107
Basic and diluted income per share	$	0.04
Weighted average common shares outstanding:
- basic	19,148,267
- diluted	19,277,703

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Kite Realty Group Trust and

Kite Property Group (Predecessor)

Condensed Consolidated and Combined Statements of Operations

Year-to-Date December 31

	Kite Realty Group Trust			Kite Property Group			Combined			Kite Property Group
	Period August 16, 2004 through December 31, 2004			Period January 1, 2004 through August 15, 2004			Period January 1, 2004 through December 31, 2004			For the Year Ended December 31, 2003
Revenue:
Minimum rent	$	15,558,827		$	11,046,605		$	26,605,432		$	10,043,847
Tenant reimbursements	2,637,230			1,662,576			4,299,806			1,199,885
Other property related revenue	2,087,256			1,373,503			3,460,759			1,511,914
Construction and service fee revenue	9,333,868			5,257,201			14,591,069			14,851,925
Other income	30,446			110,819			141,265			149,930
Total revenue	29,647,627			19,450,704			49,098,331			27,757,501
Expenses:
Property operating	3,735,195			4,130,747			7,865,942			3,772,147
Real estate taxes	1,835,837			1,595,578			3,431,415			1,206,773
Cost of construction and services	8,786,999			4,405,160			13,192,159			11,536,538
General, administrative, and other	1,780,579			1,477,112			3,257,691			2,745,657
Depreciation and amortization	7,864,679			3,584,290			11,448,969			2,892,506
Total expenses	24,003,289			15,192,887			39,196,176			22,153,621
Operating income	5,644,338			4,257,817			9,902,155			5,603,880
Interest expense	4,460,476			4,828,888			9,289,364			4,207,213
Loan prepayment penalties and expenses	1,671,449			—			1,671,449			—
Minority interest (income) loss	(125,800		)	214,887			89,087			(232,819		)
Equity in earnings of unconsolidated entities	134,097			163,804			297,901			273,118
Limited partners’ interest in operating partnership	146,968			—			146,968			—
Net income (loss)	$	(332,322	)	$	(192,380	)	$	(524,702	)	$	1,436,966
Basic and diluted loss per share	$	(0.02	)
Weighted average common shares outstanding:
- basic	18,727,977
- diluted	18,857,413

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Kite Realty Group Trust

Funds From Operations and Other Financial Information

For the Three Months Ended Ended December 31, 2004 and 2003

	Kite Realty Group Trust			Kite Property Group
	Three Months Ended
	December 31, 2004			December 31, 2003
Funds From Operations:
Net income	$	821,475		$	280,107
Add: Limited Partners’ interests	352,065			—
Add: depreciation and amortization of consolidated entities	6,157,936			744,232
Add: depreciation and amortization of unconsolidated entities	69,781			310,140
Add (deduct): minority interest*	(14,607		)	240,113
Add: joint venture partners’ interests in net income (loss) of unconsolidated entities*	—			(96,231		)
Add: joint venture partners’ interests in depreciation and amortization of unconsolidated entities*	—			604,828
Funds From Operations of the Portfolio	7,386,650			2,083,189
Plus: minority interest deficit	—			(240,113		)
Less: minority interest share of depreciation and amortization	—			(215,073		)
Less: joint venture partners’ interests in net (income) loss of unconsolidated entities	—			96,231
Less: joint venture partners’ interests in depreciation and amortization of unconsolidated entities	—			(604,828		)
Less: Limited Partners’ interests	(2,267,850		)
Funds From Operations allocable to the Company	$	5,118,800		$	1,119,406
Diluted FFO of the Portfolio per Share	$	0.27

* 2003 amounts represent the minority and joint venture partners’ interests acquired in connection with the initial public offering and related formation transactions.

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Kite Realty Group Trust

Funds From Operations and Other Financial Information

For the Years Ended December 31, 2004 and 2003

	Kite Realty Group Trust			Kite Property Group						Kite Property Group
	Period August 16, 2004 through December 31, 2004			Period January 1, 2004 through August 15, 2004			Combined Twelve Months Ended December 31, 2004			Twelve Months Ended December 31, 2003
Funds From Operations:
Net income	$	(332,322	)	$	(192,380	)	$	(524,702	)	$	1,436,968
Add: Limited Partners’ interests	(146,968		)	—			(146,968		)	—
Add: depreciation and amortization of consolidated entities	7,816,339			3,563,176			11,379,515			2,887,199
Add: depreciation and amortization of unconsolidated entities	103,518			493,571			597,089			1,174,979
Add (deduct): minority interest*	(24,106		)	(214,887		)	(238,993		)	232,819
Add: joint venture partners’ interests in net income (loss) of unconsolidated entities*	—			288,675			288,675			458,835
Add: joint venture partners’ interests in depreciation and amortization of unconsolidated entities*	—			519,277			519,277			1,672,003
Funds From Operations of the Portfolio (1)	7,416,461			4,457,432			11,873,893			7,862,803
Plus: minority interest deficit	—			214,887			214,887			(232,819		)
Less: minority interest share of depreciation and amortization	—			(1,014,248		)	(1,014,248		)	(754,301		)
Less: joint venture partners’ interests in net (income) loss of unconsolidated entities	—			(288,675		)	(288,675		)	(458,835		)
Less: joint venture partners’ interests in depreciation and amortization of unconsolidated entities	—			(519,277		)	(519,277		)	(1,672,003		)
Less: Limited Partners’ interests	(2,276,853		)	—			(2,276,853		)	—
Funds From Operations allocable to the Company	$	5,139,608		$	2,850,119		$	7,989,727		$	4,744,845

* Amounts for the period prior to August 16, 2004 represent the minority and joint venture partners’ interests acquired in connection with the initial public offering and related formation transactions.

(1) Includes bridge loan exit fee of $1,671,449 related to the company’s initial public offering and related formation transactions., as well as $0.6 million of additional expense related to the IPO.

###

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EX-99.2

Exhibit 99.2

Kite Realty Group Trust

Quarterly Financial Supplement

December 31, 2004

	Investor Relations
	Daniel R. Sink, CFO
	30 S. Meridian Street
	Suite 1100
	Indianapolis, IN 46204
	317.577.5600
	www.kiterealty.com

Supplemental Information – December 31, 2004

Table of Contents

Joint Venture Summary

Condensed Combined Balance Sheets of Unconsolidated Properties

Condensed Combined Statements of Operations of Unconsolidated Properties For the Three and Twelve Months Ended December 31

Top 10 Retail Tenants by Gross Leaseable Area

Top 20 Tenants by Annualized Base Rent

Lease Expiration Table - Combined Retail and Commercial Portfolio

Lease Expiration Table - Retail Anchor Tenants

Lease Expiration Table - Retail Shops

Summary Retail Portfolio Statistics

Summary Commercial Portfolio Statistics

Development Pipeline

Geographic Diversification - Operating Portfolio

Operating Retail Properties

Operating Commercial Properties

Retail Operating Portfolio - Tenant Breakdown

2004 Acquisitions of Operating Properties

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Corporate Profile

General Description

Kite Realty Group Trust commenced operations in August 2004 as the successor to certain businesses of Kite Property Group, a nationally recognized real estate owner and developer.  We are a full service, vertically integrated real estate company focused primarily on the development, construction, acquisition, ownership and operation of high quality neighborhood and community shopping centers in selected growth markets in the United States. We owned interests in 36 operating properties totaling approximately 5.2 million square feet and interests in 9 properties under development representing 1.3 million square feet as of December 31, 2004.  We are organized as a real estate investment trust (“REIT”) for federal income tax purposes.

Our strategy is to maximize the cash flow of our operating properties, successfully complete the construction and lease-up of our development portfolio and identify additional growth opportunities in the form of new developments and acquisitions.  New investments are focused in the shopping center sector, although we may selectively pursue commercial development or acquisition opportunities in markets where we currently operate and where we believe we can leverage the existing infrastructure and relationships to generate attractive risk adjusted returns.

Company Highlights (as of December 31, 2004)

•	Operating Retail Properties	30
•	Operating Commercial Properties	6
•	Total Properties Under Development	9
•	States	9
•	Total GLA/NRA (operating)	5,229,026
•	Owned GLA/NRA (operating)	4,054,552
•	Percentage of Owned GLA Leased - Retail	95.3	%
•	Percentage of Owned NRA Leased – Commercial	97.7	%
•	Total Employees	81

Stock Listing

New York Stock Exchange - symbol KRG

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Contact Information

Corporate Office

30 South Meridian Street, Suite 1100

Indianapolis, IN 46204

1-888-577-5600

317-577-5600

www.kiterealty.com

Investor Relations Contacts:	Analyst Coverage:
Daniel R. Sink, Chief Financial Officer	Goldman, Sachs & Co.
Kite Realty Group Trust	Mr. Carey Callaghan
30 South Meridian Street, Suite 1100	(212) 902-4351
Indianapolis, IN 46204	carey.callaghan@gs.com
(317) 577-5609
dsink@kiterealty.com	KeyBanc Capital Markets
	Mr. Richard C. Moore II, CFA
The Ruth Group	(216) 443-2815
Stephanie Carrington	rcmoore@keybanccm.com
(646) 536-7017
Jason Rando	Lehman Brothers
(646) 536-7025	Mr. David Harris
	(212) 526-1790
Transfer Agent:	dharris4@lehman.com
LaSalle Bank, National Association	Raymond James
135 South LaSalle Street	Mr. Paul Puryear
Chicago, IL 60603-3499	(727) 567-2253
(312) 904-2000	paul.puryear@raymondjames.com
Stock Specialist:	Wachovia Securities
	Mr. Jeffrey J. Donnelly, CFA
Van der Moolen Specialists USA, LLC	(617) 603-4262
45 Broadway	jeff.donnelly@wachovia.com
32nd Floor
New York, NY 10006
(646) 576-2707

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Important Notes

Interim Information

This supplemental information package contains historical information of Kite Realty Group Trust (the “Company”) and Kite Property Group (the “Predecessor”) and is intended to supplement the Company’s Annual Report on Form 10-K for the year ended December 31, 2004, which should be read in conjunction with this package.  The supplemental information is unaudited, although it reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of operating results for the interim periods.

Forward-Looking Statements

This Quarterly Financial Supplement 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 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:

•   national and local economic, business, real estate and other market conditions;

•   the ability of tenants to pay rent;

•   the competitive environment in which the Company operates;

•   financing risks;

•   property management risks;

•   the level and volatility of interest rates;

•   the Company’s ability to maintain its status as a REIT for federal income tax purposes;

•   acquisition, disposition, development and joint venture risks;

•   potential environmental and other liabilities;

•   other factors affecting the real estate industry generally; and

•   other risks identified in reports the Company files with the Securities and Exchange Commission

(the “SEC”) or in other documents that it publicly disseminates.

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.

Funds From Operations

Funds from Operations (“FFO”) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of operating performance. We calculate FFO in accordance with the best practices described in the April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts (NAREIT), which we refer to as the White Paper. The White Paper defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

Given the nature of our business as a real estate owner and operator, we believe that FFO is helpful to investors in measuring our operational performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance such as gains (or losses) from sales of property and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. FFO should not be considered as an alternative to net income (determined in accordance with generally accepted accounting principles (“GAAP”)) as an indicator of our financial performance, is not an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, and is not indicative of funds available to fund our cash needs, including our ability to make distributions. Our computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.

Net Operating Income

Net operating income (“NOI”) is provided here as a supplemental measure of operating performance.  NOI is defined as property revenues less property operating expenses, excluding depreciation and amortization, interest expense and other items.  We believe that this presentation of NOI is helpful to investors as a measure of its operational performance because it is widely used in the real estate industry to measure the performance of real estate assets without regard to various items included in net imcome that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending upon accounting methods and book value of assets.  We also believe NOI helps our investors to meaningfully compare the results of our operating performance from period to period by removing the impact of our capital structure (primarily interest expense on our outstanding indebtedness) and depreciation of our basis in our assets from our operating results.  NOI should not, however, be considered as an alternative to net income (calculated in accordance with GAAP) as an indicator of our financial performance.

Basis for Presentation

Kite Realty Group Trust commenced operations on August 16, 2004 upon completion of its initial public offering.  Prior to that date, the entities that owned the properties and service companies that we acquired as part of our formation transactions were under the common control of Al Kite, John Kite and Paul Kite (the “Principals”).  Certain line items in the accompanying financial information in the period beginning August 16, 2004 may not be comparable to prior periods due to acquisitions, including the purchase of minority partner and joint venture interests of the properties previously accounted for under the equity method.

4

Corporate Structure Chart

5

CONSOLIDATED AND COMBINED BALANCE SHEETS

	Kite Realty Group Trust December 31, 2004			The Predecessor December 31, 2003
Assets:
Investment properties, at cost:
Land	$	115,806,345		$	19,319,563
Land held for development	10,454,246			7,137,095
Buildings and improvements	365,043,023			77,076,703
Furniture, equipment and other	5,587,052			1,596,820
Construction in progress	52,485,321			48,681,767
	549,375,987			153,811,948
Less: accumulated depreciation	(24,133,716		)	(4,465,775		)
	525,242,271			149,346,173
Cash and cash equivalents	10,103,176			2,189,478
Tenant receivables, including accrued straight-line rent	5,763,831			1,520,487
Other receivables	7,635,276			5,139,118
Due from affiliates	—			3,905,605
Investments in unconsolidated entities, at equity	155,495			2,136,158
Escrow deposits	4,497,337			595,459
Deferred costs, net	15,264,271			6,053,515
Prepaid and other assets	1,093,176			449,713
Total Assets	$	569,754,833		$	171,335,706
Liabilities and Shareholders’ Equity and Owners’ Equity:
Mortgage and other indebtedness	$	283,479,363		$	141,498,289
Cash distributions and losses in excess of net investment in unconsolidated entities, at equity	837,083			2,864,690
Accounts payable and accrued expenses	28,003,690			9,541,494
Deferred revenue	30,752,689			9,266,250
Due to affiliates	—			1,469,560
Minority interest	59,735			1,137,914
Total liabilities	343,132,560			165,778,197
Commitments and Contingencies
Limited Partners’ interests in operating partnership	68,423,213			—
Common stock, $.01 par value, 200,000,000 shares authorized, 19,148,267 shares issued and outstanding	191,483			—
Additional paid in capital and other	163,727,708			—
Accumulated deficit	(5,720,131		)	—
Owners’ equity	—			5,557,509
Total owners’ equity	158,199,060			5,557,509
Total Liabilities and Shareholders’ Equity and Owners’ Equity	$	569,754,833		$	171,335,706

6

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS – 3 MONTHS

	Kite Realty Group Trust			The Predecessor
	For the Three Months Ended
	December 31,2004			December 31, 2003
Revenue:
Minimum rent	$	11,152,243		$	3,107,293
Tenant reimbursements	1,871,803			388,170
Other property related revenue	2,014,392			528,158
Construction and service fee revenue	7,471,746			5,137,279
Other income	13,526			124,865
Total revenue	22,523,710			9,285,765
Expenses:
Property operating	2,596,286			954,586
Real estate taxes	1,230,030			327,105
Cost of construction and services	6,938,833			3,254,885
General, administrative, and other	1,200,641			1,803,666
Depreciation and amortization	6,176,751			748,661
Total expenses	18,142,541			7,088,903
Operating income	4,381,169			2,196,862
Interest expense	3,186,662			1,215,961
Minority interest income	(102,150		)	(240,113		)
Equity in earnings (loss) of unconsolidated entities	81,183			(460,681		)
Limited partners’ interests in operating partnership	(352,065		)	—
Net income	$	821,475		$	280,107
Basic and diluted income per share	$	0.04
Weighted average common shares outstanding: - basic	19,148,267
- diluted	19,277,703

7

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS – 12 MONTHS

	Kite Realty Group Trust Period August 16, 2004 through December 31, 2004			Kite Property Group Period January 1, 2004 through August 15, 2004			Combined Period January 1, 2004 Through December 31, 2004			Kite Property Group For the Year Ended December 31, 2003
Revenue:
Minimum rent	$	15,558,827		$	11,046,605		$	26,605,432		$	10,043,847
Tenant reimbursements	2,637,230			1,662,576			4,299,806			1,199,885
Other property related revenue	2,087,256			1,373,503			3,460,759			1,511,914
Construction and service fee revenue	9,333,868			5,257,201			14,591,069			14,851,925
Other income	30,446			110,819			141,265			149,930
Total revenue	29,647,627			19,450,704			49,098,331			27,757,501
Expenses:
Property operating	3,735,195			4,130,747			7,865,942			3,772,147
Real estate taxes	1,835,837			1,595,578			3,431,415			1,206,773
Cost of construction and services	8,786,999			4,405,160			13,192,159			11,536,538
General, administrative, and other	1,780,579			1,477,112			3,257,691			2,745,657
Depreciation and amortization	7,864,679			3,584,290			11,448,969			2,892,506
Total expenses	24,003,289			15,192,887			39,196,176			22,153,621
Operating income	5,644,338			4,257,817			9,902,155			5,603,880
Interest expense	4,460,476			4,828,888			9,289,364			4,207,213
Loan prepayment penalties and expenses	1,671,449			—			1,671,449			—
Minority interest (income) loss	(125,800		)	214,887			89,087			(232,819		)
Equity in earnings of unconsolidated entities	134,097			163,804			297,901			273,118
Limited partners’ interests in operating partnership	146,968			—			146,968			—
Net income (loss)	$	(332,322	)	$	(192,380	)	$	(524,702	)	$	1,436,966
Basic and diluted loss per share	$	(0.02	)
Weighted average common shares outstanding:                     - basic	18,727,977
- diluted	18,857,413

8

FUNDS FROM OPERATIONS AND OTHER FINANCIAL INFORMATION – 3 MONTHS

	Kite Realty Group Trust			Kite Property Group
	Three Months Ended December 31, 2003 and 2004
	December 31, 2004			December 31, 2003
Funds From Operations:
Net income	$	821,475		$	280,107
Add: Limited Partners’ interests	352,065			—
Add: depreciation and amortization of consolidated entities	6,157,936			744,232
Add: depreciation and amortization of unconsolidated entities	69,781			310,140
Add (deduct): minority interest*	(14,607		)	240,113
Add: joint venture partners’ interests in net loss of unconsolidated entities*	—			(96,231		)
Add: joint venture partners’ interests in depreciation and amortization of unconsolidated entities*	—			604,828
Funds From Operations of the Portfolio	7,386,650			2,083,189
Plus: minority interest deficit	—			(240,113		)
Less: minority interest share of depreciation and amortization	—			(215,073		)
Less: joint venture partners’ interests in net loss of unconsolidated entities	—			96,231
Less: joint venture partners’ interests in depreciation and amortization of unconsolidated entities	—			(604,828		)
Less: Limited Partners’ interests	(2267850		)	—
Funds From Operations allocable to the Company	$	5118800		$	1,119,406
Funds From Operations of the Portfolio - basic	$	0.27
- diluted	$	0.27
Other Financial Information:
Recurring Capital Expenditures
Tenant improvements	$	386,581
Leasing commissions	62,762
Capital improvements	240,546
Scheduled debt principal payments	570,441
Straight line rent	319,782
Market rent amortization income from acquired leases	908,924
Market debt adjustment	394,617

* 2003 amounts represent the minority and joint venture partners' interests acquired in connection with the initial public offering and related formation transactions.

9

FUNDS FROM OPERATIONS – 12 MONTHS

	For the Year Ended December 31, 2004
	Kite Realty Group Trust Period August 16, 2004 through December 31, 2004			Kite Property Group Period January 1, 2004 through August 15, 2004			Combined Twelve Months Ended December 31, 2004			Kite Property Group Twelve Months Ended December 31, 2003
Funds From Operations:
Net income (loss)	$	(332,322	)	$	(192,380	)	$	(524,702	)	$	1,436,968
Add: Limited Partners’ interests	(146,968		)	—			(146,968		)	—
Add: depreciation and amortization of consolidated entities	7,816,339			3,563,176			11,379,515			2,887,199
Add: depreciation and amortization of unconsolidated entities	103,518			493,571			597,089			1,174,979
Add (deduct): minority interest*	(24,106		)	(214,887		)	(238,993		)	232,819
Add: joint venture partners’ interests in net income of unconsolidated entities*	—			288,675			288,675			458,835
Add: joint venture partners’ interests in depreciation and amortization of unconsolidated entities*	—			519,277			519,277			1,672,003
Funds From Operations of the Portfolio(1)	7,416,461			4,457,432			11,873,893			7,862,803
Plus: minority interest deficit	—			214,887			214,887			(232,819		)
Less: minority interest share of depreciation and amortization	—			(1,014,248		)	(1,014,248		)	(754,301		)
Less: joint venture partners’ interests in net income of unconsolidated entities	—			(288,675		)	(288,675		)	(458,835		)
Less: joint venture partners’ interests in depreciation and amortization of unconsolidated entities	—			(519,277		)	(519,277		)	(1,672,003		)
Less: Limited Partners’ interests	(2276853		)	—			(2276853		)	—
Funds From Operations allocable to the Company	$	5139608		$	2,850,119		$	7,989,727		$	4,744,845

* Amounts for the period prior to August 16, 2004 represent the minority and joint venture partners’ interests acquired in connection with the initial public offering and related formation transactions.

(1) Funds From Operations for the period ending December 31, 2004 includes costs of approximately $2.2 million related to the initial public offering and related formation transactions.

10

MARKET CAPITALIZATION

As of December 31, 2004:

	Percent of Total Equity	Total Market Capitalization		Percent of Total Market Capitalization
Equity Capitalization:
Total Common Shares Outstanding	69.8%	19,148,267
Operating Partnership (“OP”) Units	30.2%	8,281,882
Combined Common Shares and OP Units	100.0%	27,430,149
Market Price at December 31, 2004		$	15.28
Total Equity Capitalization		$	419,132,677	59%
Debt Capitalization:
Company Outstanding Debt		$	283,479,363
Pro-rata Share of Joint Venture Debt		8,738,897
Total Debt Capitalization		292,218,260		41%
Total Market Capitalization		$	711,350,937	100%

Weighted Average Outstanding Common Shares and OP Units:

	Common Shares	OP Units	Total
Outstanding Common Shares and OP Units (Basic)	19,148,267	8,281,882	27,430,149
Effect of assumed exercise of stock options	129,436	—	129,436
Outstanding Common Shares and OP Units (Diluted)	19,277,703	8,281,882	27,559,585

11

NET OPERATING INCOME

	THREE MONTHS ENDED*									TWELVE MONTHS ENDED
	December 31, 2004			September 30, 2004			June 30, 2004			December 31, 2004
Revenue:
Minimum rent	$	11,152,243		$	7,282,422		$	4,901,039		$	26,605,432
Tenant reimbursements	1,871,803			1,300,525			748,700			4,299,806
Other property related revenue	2,014,392			233,651			317,502			3,460,759
Other income, net	13,526			52,929			73,625			141,265
	15,051,964			8,869,527			6,040,866			34,507,262
Expenses:
Property operating	2,596,286			2,220,984			1,861,677			7,865,942
Real estate taxes	1,230,030			972,896			847,790			3,431,415
	3,826,316			3,193,880			2,709,467			11,297,357
Net Operating Income - (Properties)	11,225,648			5,675,647			3,331,399			23,209,905
Other Income (Expense)
Construction and service fee revenue	7,471,746			3,073,897			1,811,005			14,591,069
Cost of construction and services	(6,938,833		)	(2,879,544		)	(1,240,376		)	(13,192,159		)
General, administrative, and other	(1,200,641		)	(997,358		)	(587,262		)	(3,257,691		)
Depreciation and amortization	(6,176,751		)	(2,816,696		)	(1,543,583		)	(11,448,969		)
	(6,844,479		)	(3,619,701		)	(1,560,216		)	(13,307,750		)
Earnings Before Interest and Taxes	4,381,169			2,055,946			1,771,183			9,902,155
Interest expense	3,186,662			2,633,621			2,139,098			9,289,364
Loan prepayment penalties and expenses	—			1,671,449			—			1,671,449
Minority interest (income) loss	(102,150		)	263,280			(56,055		)	89,087
Equity in earnings of unconsolidated entities	81,183			191,020			42,508			297,901
Limited partners’ interests in operating partnership	(352,065		)	499,033			—			146,968
Net income (loss)	$	821,475		$	(1,295,791	)	$	(381,462	)	$	(524,702	)

* Results are unaudited although they reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of operating results for the interim period.

12

SUMMARY OF OUTSTANDING DEBT(1)

TOTAL DEBT OUTSTANDING AS OF DECEMBER 31, 2004

	Outstanding Amount		Percent of Total Debt		Weighted Average Interest Rate		Weighted Average Maturity (in years)
Fixed Rate Debt:
Consolidated	$	152,832	53	%	6.75	%	6.8
Unconsolidated	8,739		3	%	6.61	%	7.4
Total Fixed Rate Debt	161,571		56	%	6.74	%	6.9
Variable Rate Debt:
Construction Loans	59,522		21	%	4.09	%	1.4
Other Variable	66,986		23	%	3.49	%	2.6
Total Variable Rate Debt	126,508		44	%	3.77	%	2.0
Net Premiums	4,139		N/A		N/A		N/A
Total	$	292,218	100	%	5.24	%	4.7

SCHEDULE OF MATURITIES BY YEAR (AS OF DECEMBER 31, 2004)

					Secured Line of Credit		Construction Loans		Total Consolidated Outstanding Debt		KRG Share of Unconsolidated Mortgage Debt		Total Consolidated and Unconsolidated Debt
	Mortgage Debt
	Annual		Term
	Maturity		Maturities
2005	$	2,474	$	6,214	$	0	$	12,452	$	21,140	$	169	$	21,309
2006	2,279		21,649		0		47,070		70,998		191		71,189
2007	2,410		0		56,200		0		58,610		204		58,814
2008	2,427		4,342		0		0		6,769		218		6,987
2009	2,299		27,452		0		0		29,751		2,223		31,974
2010	2,024		0		0		0		2,024		97		2,121
2011	1,789		19,655		0		0		21,444		104		21,548
2012	1,336		24,686		0		0		26,022		110		26,132
2013	1,309		4,027		0		0		5,336		5,423		10,759
2014	901		27,565		0		0		28,466		0		28,466
2015	800		0		0		0		800		0		800
2016 and beyond	3,548		4,432		0		0		7,980		0		7,980
Net Premiums	0		0		0		0		4,139		0		4,139
Total	$	23,596	$	140,022	$	56,200	$	59,522	$	283,479	$	8,739	$	292,218

(1)  Dollars in thousands.

13

Schedule of Outstanding Debt(1)

CONSOLIDATED DEBT AS OF DECEMBER 31, 2004

Fixed Rate Debt:	Lender/Servicer	Interest Rate		Maturity Date	Balance as of 12/31/04		Monthly Debt Service as of 12/31/04
50th & 12th	Wachovia Bank	5.67	%	11/11/2014	$	4,695	27
176th & Meridian	Wachovia Bank	5.67	%	11/11/2014	4,265		25
Boulevard Crossing	Wachovia Bank	5.11	%	12/11/2009	12,660		69
Centre at Panola, Phase I	JP Morgan Chase	6.78	%	1/1/2022	4,439		37
Corner Shops, The	Sun Life Assurance Co.	7.65	%	7/1/2011	1,926		17
Four Corner Square	Four Corner Square, LP	4.00	%	1/3/2005	2,500		12
International Speedway Square	Lehman Brothers Bank	7.17	%	3/11/2011	19,923		139
Plaza at Cedar Hill	GECC	7.38	%	2/1/2012	27,263		194
Preston Commons	Wachovia Bank	5.90	%	3/11/2013	4,653		28
Ridge Plaza	Wachovia Bank	5.15	%	10/11/2009	16,963		93
Sunland Towne Centre	Nomura Asset Capital	8.85	%	1/11/2006	17,719		155
Thirty South	CS First Boston	6.09	%	1/11/2014	23,241		142
Traders Point	Huntington Real Estate Investment Company	12% (2% deferred	)	9/30/2006	2,625		104
Whitehall Pike	Banc One Capital Funding	6.71	%	7/5/2018	9,960		77
TOTAL CONSOLIDATED FIXED RATE DEBT					$	152,832	$	1,119
TOTAL NET PREMIUMS (FAS 141)					$	4,139

Variable Rate Debt: Mortgages	Lender	Interest Rate	Maturity Date	Balance as of 12/31/04
Cool Creek Commons	LaSalle Bank	Prime + 200	4/30/2006	$	1,135
Eagle Creek Phase II (Pad 1)	Wachovia Bank	LIBOR + 250	4/21/2005	850
Fishers Station(2)	National City Bank	LIBOR + 275	9/1/2008	5,466
Geist Pavilion	Star Financial	Prime + 25	4/5/2005	864
Traders Point III	Huntington Bank	Prime	10/6/2006	471
Traders Point II	Whitaker Bank	Prime + 100	3/4/2005	2,000
Subtotal				$	10,786

(1)  Dollars in thousands.

(2)  The Company has a 25% interest in this property.

14

SCHEDULE OF OUTSTANDING DEBT (CONTINUED)(1)

Construction Loans	Servicer	Interest Rate	Maturity Date	Total Commitment		Balance as of 12/31/04
82nd & Otty	KeyBank	LIBOR + 225	9/12/2005	$	1,792	$	1,587
Circuit City Plaza	Wachovia Bank	LIBOR + 185	6/30/2005	6,900		6,651
Cool Creek Commons	LaSalle Bank	LIBOR + 225	4/30/2006	17,025		13,817
Indiana State Motor Pool	Old National Bank	LIBOR + 225	4/1/2006	4,168		3,820
Traders Point	Huntington Bank	LIBOR + 235	10/5/2006	40,000		29,433
Weston Park	Old National Bank	LIBOR + 215	7/9/2005	4,930		4,214
Subtotal						$	59,522

Line of Credit	Lender	Interest Rate	Maturity Date	Total Available as of 12/31/04			Balance as of 12/31/04
Collateral Pool Properties(2):	Wachovia Bank	LIBOR + 135	08/31/2007	$	91,254	(3)	$	56,200	(3)
Total Consolidated Variable Rate Debt							$	126,508
TOTAL CONSOLIDATED DEBT							$	283,479

(1)  Dollars in thousands.

(2)  There are currently fourteen operating properties encumbered under the line of credit.  The following properties are currently unencumbered and available to expand borrowings under the line: 50 S. Morton, Centre at Panola Phase II, Eagle Creek Phase II, Eastgate Pavilion, Four Corner Square, Frisco Bridges, Greyhound Commons, Kite Spring Mill II, Martinsville Shops, Wal-Mart Plaza

(3)  The total amount available for borrowing under the line is $91,254, of which $56,200 was outstanding at December 31, 2004.

15

SCHEDULE OF OUTSTANDING DEBT (CONTINUED)(1)

UNCONSOLIDATED DEBT(2)	Lender	Interest Rate		Maturity Date	Balance as of 12/31/04			Monthly Debt Service as of 12/31/04
Fixed Rate
The Centre	Sun Life	6.99	%	6/1/2009	$	4,341		$	40
Spring Mill Medical	LaSalle Bank	6.45	%	9/1/2013	12,269			78
TOTAL UNCONSOLIDATED DEBT					$	16,610		$	118
JOINT VENTURE PARTNERS’ SHARE OF TOTAL UNCONSOLIDATED DEBT					<7,871		>
KRG’S SHARE OF TOTAL UNCONSOLIDATED DEBT					$	8,739

TOTAL KRG CONSOLIDATED DEBT	$	283,479
TOTAL KRG SHARE OF UNCONSOLIDATED DEBT	8,739
TOTAL KRG DEBT	$	292,218

(1)  Dollars in thousands.

(2)  The Company owns a 50% interest in Spring Mill Medical and a 60% interest in The Centre.

16

Joint Venture Summary

The Company owns the following two unconsolidated properties with joint venture partners:

Property	Percentage Owned by the Company
The Centre	60	%
Spring Mill Medical	50	%

17

Condensed Combined Balance Sheets of Unconsolidated Properties

(THE CENTRE AND SPRING MILL MEDICAL)

	Kite Realty Group Trust			Kite Property Group
	December 31, 2004			December 31, 2003
Assets:
Investment properties, at cost
Land	$	2,552,075		$	2,552,075
Land held for development	—			—
Buildings and improvements	14,493,799			14,450,685
Furniture and equipment	—			—
Construction in progress	—			—
	17,045,874			17,002,760
Less: accumulated depreciation	(2,338,829		)	(1,885,610		)
	14,707,045			15,117,150
Cash and cash equivalents	601,423			747,632
Tenant receivables, including accrued straight line rent	254,883			311,040
Other receivables	5,661			—
Due from affiliates	—			—
Investments in unconsolidated entities, at equity	—			—
Escrow deposits	—			—
Deferred costs, net	768,825			761,216
Prepaid and other assets	4,870			8,104
	—			—
Total Assets	$	16,342,707		$	16,945,142
Liabilities and Accumulated Equity (Deficit):
Mortgage and other indebtedness	$	16,609,675		$	16,909,121
Cash distributions and losses in excess, net of investment in
Unconsolidated entities, at equity	—			—
Accounts payable and accrued expenses	458,289			534,749
Deferred revenue	—			—
Due to affiliate	—			—
Minority interest	—			—
Total Liabilities	17,067,964			17,443,870
Accumulated equity (deficit)	(725,257		)	(498,728		)
Total Liabilities and Accumulated Equity (Deficit)	$	16,342,707		$	16,945,142

18

Condensed Combined Statements of Operations of Unconsolidated Properties

(THE CENTRE AND SPRING MILL MEDICAL)

	Three Months Ended December 31				Twelve Months Ended December 31
	2004		2003		2004		2003
Total Revenue	$	863,582	$	748,760	$	3,267,976	$	2,983,949
Expenses:
Property operating and other	247,766		276,767		910,741		915,929
Real estate taxes	46,598		43,808		236,022		175,235
Depreciation and amortization	133,341		132,328		519,340		503,657
Total expenses	427,705		452,903		1,666,103		1,594,821
Operating income	435,877		295,857		1,601,873		1,389,128
Interest expense	290,929		286,336		1,159,371		883,209
Net income	$	144,948	$	9,521	$	442,502	$	505,919

19

Top 10 Retail Tenants by Gross Leaseable Area (GLA)

AS OF DECEMBER 31, 2004

Information includes Operating Retail and Development Property tenants and non-owned anchors open for business as of December 31, 2004.

Tenant	Number of Locations	Total GLA	Number of Leases	Company Owned GLA	Number of Anchor Owned Locations	Anchor Owned GLA
Lowe’s Home Center	5	678,997	1	128,997	4	550,000
Wal-Mart	2	328,161	1	103,161	1	225,000
L.S. Ayres	1	237,455	1	237,455	0	0
Publix	3	129,357	3	129,357	0	0
Dick’s Sporting Goods	2	126,672	2	126,672	0	0
Marsh Supermarkets	2	122,000	2	122,000	0	0
Kmart	1	110,875	1	110,875	0	0
Burlington Coat Factory	1	107,400	1	107,400	0	0
Winn-Dixie	2	103,406	2	103,406	0	0
Circuit City	3	98,485	3	98,485	0	0
Total	22	2,042,808	17	1,267,808	5	775,000

20

TOP 20 TENANTS BY ANNUALIZED BASE RENT

AS OF DECEMBER 31, 2004

Information includes Operating Retail and Commercial Properties and Development Property tenants open for business as of December 31, 2004.

Tenant	Type	Number of Locations	Leased GLA	% of Total GLA of Retail Portfolio		Annualized Base Rent		Annualized Base Rent per Sq. Ft.		% of Total Portfolio Annualized Base Rent
Mid America Laboratories	Commercial	1	100,000	2.3	%	$	1,721,000	$	17.21	3.6	%
State of Indiana	Commercial	3	210,393	4.9	%	$	1,663,733	$	7.91	3.4	%
Eli Lilly	Commercial	1	99,542	2.3	%	$	1,642,443	$	16.50	3.4	%
Marsh Supermarkets	Retail	2	122,000	2.9	%	$	1,547,847	$	12.69	3.2	%
Circuit City	Retail	3	98,485	2.3	%	$	1,370,993	$	13.92	2.8	%
Ultimate Electronics	Retail	2	63,627	1.5	%	$	1,242,732	$	19.53	2.6	%
Dick’s Sporting Goods	Retail	2	126,672	3.0	%	$	1,220,000	$	9.63	2.5	%
Walgreen’s	Retail	3	39,070	0.9	%	$	1,031,023	$	26.39	2.1	%
Bed Bath & Beyond	Retail	3	85,895	2.0	%	$	1,021,921	$	11.90	2.1	%
Lowe’s Home Center	Retail	1	128,997	3.0	%	$	1,014,000	$	7.86	2.1	%
Publix	Retail	3	129,357	3.0	%	$	989,355	$	7.65	2.1	%
Kmart	Retail	1	110,875	2.6	%	$	850,379	$	7.67	1.8	%
UMDA	Commercial	1	32,256	0.8	%	$	844,402	$	26.18	1.8	%
Winn-Dixie	Retail	2	103,406	2.4	%	$	806,266	$	7.80	1.7	%
A & P	Retail	1	58,732	1.4	%	$	763,516	$	13.00	1.6	%
Kerasotes Theatres	Retail	2	43,050	1.0	%	$	739,500	$	17.18	1.5	%
City Securities	Commercial	1	34,949	0.8	%	$	694,900	$	19.88	1.4	%
Indiana University Healthcare	Commercial	1	31,175	0.7	%	$	679,077	$	21.78	1.4	%
Dominick’s	Retail	1	65,636	1.5	%	$	669,487	$	10.20	1.4	%
Old Navy	Retail	3	70,620	1.7	%	$	587,958	$	8.33	1.2	%
			1,754,737	41.0	%	$	21,100,532	$	12.03	43.7	%

21

Lease Expiration Table – Operating Portfolio

AS OF DECEMBER 31, 2004

Information includes Operating Retail and Commercial Properties and Development Property tenants open for business as of December 31, 2004.

	Number of Expiring Leases(1)	Expiring GLA/NRA(2)	% of Total Sq. Ft. Expiring		Expiring Annualized Base Rent(3)			% of Total Annualized Base Rent		Expiring Annualized Base Rent per Sq. Ft.		Expiring Ground Lease Revenue
2005	69	218,156	5.3	%	$		2,409,956	5.2	%	$	11.05	$	0
2006	62	184,944	4.5	%	$		2,254,720	4.8	%	$	12.19	$	0
2007	60	191,311	4.7	%	$		2,412,280	5.2	%	$	12.61	$	0
2008	37	294,849	7.2	%	$		2,372,677	5.1	%	$	8.05	$	0
2009	42	168,841	4.1	%	$		2,350,442	5.0	%	$	13.92	$	0
2010	24	301,946	7.4	%	$		2,912,161	6.2	%	$	9.64	$	0
2011	25	513,157	12.5	%	$		4,389,374	9.4	%	$	8.55	$	0
2012	27	213,443	5.2	%	$		2,966,309	6.4	%	$	13.90	$	85,000
2013 & Beyond	98	2,009,846	49.1	%	$	24,543,584		52.7	%	$	12.21	$	1,542,680
Total	444	4,096,493	100.0	%	$	46,611,503		100.0	%	$	11.38	$	1,627,680

(1)   Lease expiration table does not include option periods and 2005 expirations include month to month tenants.

(2)   Expiring GLA excludes square footage for Non-Owned Ground Lease structures.

(3)   Excludes Ground Lease Revenue.

22

Lease Expiration Table – Retail Anchor Tenants(1)

AS OF DECEMBER 31, 2004

Information includes Operating Retail Properties and Development Property tenants open for business as of December 31, 2004.

	Number of Expiring Leases(2)	Expiring GLA/NRA(3)	% of Total Sq. Ft. Expiring		Expiring Annualized Base Rent(4)		% of Total Annualized Base Rent		Expiring Annualized Base Rent per Sq. Ft.		Expiring Ground Lease Revenue
2005	3	65,117	1.6	%	$	487,491	1.0	%	$	7.49	$	0
2006	3	60,034	1.5	%	$	388,266	0.8	%	$	6.47	$	0
2007	5	76,926	1.9	%	$	609,076	1.3	%	$	7.92	$	0
2008	2	210,561	5.1	%	$	792,783	1.7	%	$	3.77	$	0
2009	3	65,656	1.6	%	$	598,240	1.3	%	$	9.11	$	0
2010	9	248,324	6.1	%	$	2,140,944	4.6	%	$	8.62	$	0
2011	5	360,651	8.8	%	$	1,635,905	3.5	%	$	4.54	$	0
2012	3	94,890	2.3	%	$	716,757	1.5	%	$	7.55	$	0
2013 & Beyond	38	1,441,512	35.2	%	$	15,739,470	33.8	%	$	10.92	$	240,000
Total	71	2,623,671	64.1	%	$	23,108,932	49.5	%	$	8.81	$	240,000

(1)   Retail anchor tenants are defined as tenants of operating retail properties which occupy 10,000 square feet or more.

(2)   Lease expiration table does not include option periods and 2005 expirations include month to month tenants.

(3)   Expiring GLA excludes square footage for Non-Owned Ground Lease structures.

(4)   Excludes Ground Lease Revenue.

23

Lease Expiration Table – Retail Shops

AS OF DECEMBER 31, 2004

Information includes Operating Retail Properties and Development Property tenants open for business as of December 31, 2004.

	Number of Expiring Leases(1)	Expiring GLA/NRA(2)	% of Total Sq. Ft. Expiring		Expiring Base Rent(3)		% of Total Base Rent		Expiring Base Rent per Sq. Ft.		Expiring Ground Lease Revenue
2005	66	153,039	3.7	%	$	1,922,464	4.1	%	$	12.56	$	0
2006	57	117,807	2.9	%	$	1,752,806	3.8	%	$	14.88	$	0
2007	53	110,430	2.7	%	$	1,727,711	3.7	%	$	15.65	$	0
2008	34	76,323	1.9	%	$	1,419,956	3.0	%	$	18.60	$	0
2009	39	103,185	2.5	%	$	1,752,202	3.8	%	$	16.98	$	0
2010	14	44,744	1.1	%	$	591,437	1.3	%	$	13.22	$	0
2011	17	52,964	1.3	%	$	1,111,026	2.4	%	$	20.98	$	0
2012	21	81,501	2.0	%	$	1,658,844	3.6	%	$	20.35	$	85,000
2013 & Beyond	31	85,629	2.1	%	$	1,884,736	4.0	%	$	22.01	$	1,302,680
Total	332	825,622	20.2	%	$	13,821,182	29.7	%	$	16.74	$	1,387,680

(1)   Lease expiration table does not include option periods and 2005 expirations include month to month tenants.

(2)   Expiring GLA excludes square footage for Non-Owned Ground Lease structures.

(3)   Excludes Ground Lease Revenue.

24

Summary Retail Portfolio Statistics

(INCLUDES JOINT VENTURE PROPERTIES)

Retail Portfolio	12/31/04			9/30/04			6/30/04			3/31/04			12/31/03
Company Owned GLA(1) – Operating Retail	3,391,900			3,078,616			1,845,631			1,624,338			1,465,628
Total GLA(1) – Operating Retail	4,566,374			4,108,090			2,853,129			2,531,457			1,887,747
Projected Total GLA Under Development	1,252,331			1,382,202			1,411,265			1,411,265			984,140
Projected Company owned GLA Under Development(2)	560,300			545,500			574,560			574,560			533,560
Number of Operating Retail Properties	30			27			17			14			12
Number of Retail Properties Under Development	9			10			12			12			8
Percentage Leased – Operating Retail	95.3		%	94.9		%	92.8		%	93.9		%	91.1		%
Percentage Leased – Retail Properties under Development – 2004 Deliveries(3)	73.9		%	71.8		%	73.0		%	62.1		%	62.1		%
Annualized Base Rent & Ground Lease Revenue – Retail Properties	$	35,187,179		$	31,814,134		$	24,939,090		$	21,508,397		$	19,344,588

(1)           “Company Owned GLA” represents gross leasable area that is owned by the Company.  “Total GLA” includes Company Owned GLA, plus square footage attributable to non-owned outlot structures on land that is owned by the Company and ground leased to tenants, plus non-owned anchor space.

(2)           “Projected Company Owned GLA Under Development” represents gross leaseable area under development that is projected to be owned by the Company.  “Projected Total GLA” includes Projected Company Owned GLA, plus projected square footage attributable to non-owned outlot structures on land that is owned by the Company and ground leased to tenants, plus non-owned anchor space that is existing or under construction.

(3)           “Percentage Leased – Retail Properties under Development” is calculated based on Projected Company Owned GLA plus projected square footage attributable to non-owned outlot structures on land that is owned by the Company and ground leased to tenants.  The “2004 Deliveries” calculation reflects only properties that were projected for 2004, so that the 12/31/04 calculation includes 3 properties, the 9/30/04 calculation includes 4 properties, the 6/30/04 calculation includes 6 properties, the 3/31/04 calculation includes 6 properties, and the 12/31/03 calculation includes 8 properties.

25

Summary Commercial Portfolio Statistics

(INCLUDES JOINT VENTURE PROPERTIES)

Commercial Portfolio	12/31/04			9/30/04			6/30/04			3/31/04			12/31/03
Company Owned Net Rentable Area (NRA)(1)	662,652			547,652			547,652			545,673			545,673
NRA under Development	—			115,000			115,000			115,000			115,000
Number of Operating Commercial Properties	6			5			5			5			5
Number of Commercial Properties under Development	—			1			1			1			1
Percentage Leased – Operating Commercial Properties	97.7		%	96.9		%	98.8		%	98.8		%	95.8		%
Percentage Leased – Commercial Properties under Development	—			100		%	100		%	100		%	100		%
Annualized Base Rent – Commercial Properties(2)	$	9,681,386		$	8,998,898		$	9,149,558		$	9,149,558		$	8,832,000

(1)           “Company Owned NRA” does not include square footage of Union Station Parking Garage, a detached parking garage supporting the Thirty South property that includes 851 parking spaces.  It is operated by Denison Parking, a third party, pursuant to a lease of the entire property.

(2)           “Annualized Base Rent” does not include approximately $500,000 in annualized income attributable to the Union Station Parking Garage.

26

Development Pipeline

AS OF DECEMBER 31, 2004

Property	MSA	Type of Property	Projected Opening Date	Projected Owned GLA/NRA(1)	Projected Total GLA/NRA(2)	Total Estimated Project Cost(3)		Cost Incurred as of 12/31/04(3)		Percentage of Owned GLA/NRA Pre-Leased(4)		Major Tenants and Non-owned Anchors
Florida
Eagle Creek, Phase II	Naples	Retail	Jan-05	(see below)	165,000	$	9,080	$	8,520	(see below)
Indiana
Traders Point	Indianapolis	Retail	Oct-04	285,000	366,377	43,227		35,395		73.7	%	Dick’s Sporting Goods, Marsh Supermarkets, Bed Bath & Beyond, Kerasotes Theatres, Michaels, Old Navy
Cool Creek Commons	Indianapolis	Retail	Oct-04	126,000	138,529	20,013		17,954		75.8	%	SteinMart, Fresh Market
Traders Point II	Indianapolis	Retail	Apr-05	41,000	48,600	8,288		4,379		0.0	%	(see Traders Point)
Weston Park, Phase I	Indianapolis	Retail	Nov-04	0	12,200	1,963		4,290		n/a
Greyhound Commons	Indianapolis	Retail	Feb-05	0	201,325	4,397		3,199		n/a		Lowe’s (non-owned)
Red Bank Commons	Evansville	Retail	Feb-05	34,500	246,500	6,400		4,252		39.4	%	Wal-Mart (non-owned; Home Depot (non-owned)
Martinsville Shops	Martinsville	Retail	Mar-05	11,000	11,000	1,197		1,426		0.0	%
Geist Pavilion	Indianapolis	Retail	Mar-05	62,800	62,800	7,747		3,256		25.8	%
			Total	560,300	1,252,331	$	102,312	$	82,671	59.9	%

All of the land at Eagle Creek Phase II, Weston Park Phase I, and Greyhound Commons is intended to be ground leased to tenants.

•We have entered into an Agreement to Enter into Ground Lease for the entire Eagle Creek, Phase II property with a big box retailer.  The retailer is obligated to pay and is paying a portion of its rent until the ground lease is executed.

•Weston Park, Phase I consists of three outlots, two of which were leased as of December 31, 2004.

•Greyhound Commons consists of four outlots, two of which were leased as of December 31, 2004.

(1)           “Projected Owned GLA/NRA” represents gross leasable area/net rentable area that is owned by the Company.  It excludes square footage attributable to non-owned outlot structures on land that is owned by KRG and ground leased to tenants.

(2)           “Projected Total GLA/NRA” includes Projected Owned GLA, plus projected square footage attributable to non-owned outlot structures on land that is owned by KRG and ground leased to tenants, plus non-owned anchor space that is currently existing or under construction.

(3)           Dollars in thousands.

(4)           Excludes outlots and parcels owned by KRG and ground leased to tenants.  Traders Point has seven such parcels, four of which were pre-leased as of December 31, 2004.

27

Geographic Diversification – Operating Portfolio

AS OF DECEMBER 31, 2004

	Number of Operating Properties	Owned GLA/NRA(1)	Percentage of Owned GLA/NRA		Total Number of Leases	Annualized Base Rent Revenue(2)		% of Annualized Base Rent		Annualized Base Rent per Leased Square Foot
Indiana	15	1,805,599	44.5	%	178	$	18,691,263	42.6	%	$	11.12
•  Retail – Mall	1	579,189	14.3	%	48	$	2,792,028	6.3	%	$	5.56
•  Retail	8	563,758	13.9	%	106	$	6,217,849	14.2	%	$	11.71
•  Commercial	6	662,652	16.3	%	24	$	9,681,386	22.1	%	$	14.96
Texas	6	830,910	20.5	%	59	$	9,275,453	21.2	%	$	11.26
Florida	6	683,962	16.9	%	88	$	6,823,254	15.6	%	$	10.16
Illinois	1	132,725	3.3	%	19	$	1,627,756	3.7	%	$	13.88
New Jersey	1	114,928	2.8	%	17	$	1,732,090	4.0	%	$	15.96
Georgia	2	142,707	3.5	%	29	$	1,623,413	3.7	%	$	11.38
Washington	3	102,146	2.5	%	24	$	1,590,234	3.6	%	$	16.88
Ohio	1	231,730	5.7	%	6	$	2,209,767	5.0	%	$	9.54
Oregon	1	9,845	0.3	%	7	$	273,156	0.6	%	$	27.75
Total	36	4,054,552	100.0	%	427	$	43,846,386	100.0	%	$	11.30

(1)           “Owned GLA/NRA” represents gross leasable area or net rentable area owned by the Company.  It does not include 12 parcels or outlots owned by the Company and ground leased to tenants, which contain non-owned structures totaling approximately 64,447 square feet.  It also excludes the square footage of Union Station Parking Garage.

(2)           “Annualized Base Rent Revenue” excludes $1,022,180 in annualized ground lease revenue attributable to parcels and outlots owned by the Company and ground leased to tenants.  It also excludes approximately $500,000 in 2004 annualized income attributable to the Union Station Parking Garage as well as the leases on properties classified as development properties.

28

Operating Retail Properties (Part I)

AS OF DECEMBER 31, 2004

Property	State	MSA	Year Built/ Renovated	Year Added to Operating Portfolio	Acquired, Redeveloped, or Developed	Total GLA	Company Owned GLA		Percentage of Owned GLA Leased
Int’l Speedway Square	FL	Daytona Beach	1999	1999	Developed	233,901	220,901		100.0	%
King’s Lake Square	FL	Naples	1986	2003	Acquired	85,497	85,497		97.5	%
Wal-Mart Plaza	FL	Gainesville	1970	2004	Acquired	177,766	177,766		99.1	%
Waterford Lakes	FL	Orlando	1997	2004	Acquired	77,948	77,948		100.0	%
Shops at Eagle Creek	FL	Naples	1998	2003	Acquired	75,944	75,944		93.6	%
Circuit City Plaza	FL	Ft. Lauderdale	2004	2004	Developed	435,906	45,906		91.5	%
Centre at Panola	GA	Atlanta	2001	2004	Acquired	73,079	73,079		100.0	%
Publix at Acworth	GA	Atlanta	1996	2004	Acquired	69,628	69,628		100.0	%
Silver Glen Crossings	IL	Chicago	2002	2004	Acquired	138,274	132,725		88.4	%
Glendale Mall	IN	Indianapolis	1958/2000	1999	Redeveloped	724,026	579,189		86.7	%
Boulevard Crossing	IN	Kokomo	2004	2004	Developed	214,696	112,696		90.3	%
Hamilton Crossing	IN	Indianapolis	1999	2004	Acquired	87,374	82,374		92.7	%
Fishers Station	IN	Indianapolis	1989	2004	Acquired	114,457	114,457		86.2	%
Whitehall Pike	IN	Bloomington	1999	1999	Developed	128,997	128,997		100.0	%
The Centre	IN	Indianapolis	1986	1986	Developed	80,689	80,689		100.0	%
The Corner	IN	Indianapolis	1984/2003	1984	Developed	42,545	42,545		100.0	%
Stoney Creek Commons	IN	Indianapolis	2000	2000	Developed	154,282	(*	)	(*	)
50 S. Morton	IN	Indianapolis	1999	1999	Developed	2,000	2,000		100.0	%
Ridge Plaza	NJ	Oak Ridge	2002	2003	Acquired	114,928	114,928		94.4	%
Eastgate Pavilion	OH	Cincinnati	1995	2004	Acquired	231,730	231,730		100.0	%
82nd & Otty	OR	Portland	2004	2004	Developed	154,845	9,845		100.0	%
Plaza at Cedar Hill	TX	Dallas	2000	2004	Acquired	299,783	299,783		100.0	%
Sunland Towne Centre	TX	El Paso	1996	2004	Acquired	312,571	307,595		98.9	%
Galleria Plaza	TX	Dallas	2002	2004	Acquired	44,306	44,306		100.0	%
Cedar Hill Village	TX	Dallas	2002	2004	Acquired	139,092	44,262		100.0	%
Preston Commons	TX	Dallas	2002	2002	Developed	142,564	27,564		85.6	%
Burlington Coat	TX	San Antonio	1992/2000	2000	Redeveloped	107,400	107,400		100.0	%
50th & 12th	WA	Seattle	2004	2004	Developed	14,500	14,500		100.0	%
176th & Meridian	WA	Seattle	2004	2004	Developed	14,560	14,560		100.0	%
Four Corner Square	WA	Seattle	1985	2004	Acquired	73,086	73,086		89.1	%
					Total	4,566,374	3,391,900		95.3	%

Note: An (*) indicates that this property consists of parcels which are ground leased to tenants.

29

Operating Retail Properties (Part II)

AS OF DECEMBER 31, 2004

Property	State	MSA	Annualized Base Rent Revenue			Annualized Ground Lease Revenue		Annualized Total Revenue		Percentage of Annualized Total Retail Revenue		Base Rent Per Leased Owned Square Ft.			Major Tenants and Non-Owned Anchors
Int’l Speedway Square	FL	Daytona Beach	$	2,454,026		$	216,400	$	2,670,426	7.6	%	$	11.11		SteinMart, Bed Bath, Circuit City, Staples
King’s Lake Square	FL	Naples	$	1,019,809		$	0	$	1,019,809	2.9	%	$	12.24		Publix, Walgreens
Wal-Mart Plaza	FL	Gainesville	$	869,336		$	0	$	869,336	2.5	%	$	4.94		Wal-Mart, Books A Million, Save A Lot
Waterford Lakes	FL	Orlando	$	890,942		$	0	$	890,942	2.5	%	$	11.43		Winn-Dixie
Shops at Eagle Creek	FL	Naples	$	771,936		$	0	$	771,936	2.2	%	$	10.86		Winn-Dixie
Circuit City Plaza	FL	Ft. Lauderdale	$	817,204		$	0	$	817,204	2.3	%	$	19.46		Circuit City
Centre at Panola	GA	Atlanta	$	824,148		$	0	$	824,148	2.3	%	$	11.28		Publix
Publix at Acworth	GA	Atlanta	$	799,265		$	0	$	799,265	2.3	%	$	11.48		Publix, CVS
Silver Glen Crossings	IL	Chicago	$	1,627,756		$	85,000	$	1,712,756	4.9	%	$	13.88		Dominick’s, MC Sports
Glendale Mall	IN	Indianapolis	$	2,792,029		$	140,000	$	2,932,029	8.4	%	$	5.56		L.S. Ayres, Kerasotes Theatre, Old Navy, Staples
Boulevard Crossing	IN	Kokomo	$	1,271,605		$	75,000	$	1,346,605	3.8	%	$	12.50		TJ Maxx, Petco, Shoe Carnival, Kohl’s (non-owned)
Hamilton Crossing	IN	Indianapolis	$	1,187,999		$	65,000	$	1,252,999	3.6	%	$	15.56		Office Depot
Fishers Station	IN	Indianapolis	$	1,156,319		$	0	$	1,156,319	3.3	%	$	11.73		Marsh Supermarket
Whitehall Pike	IN	Bloomington	$	1,014,000		$	0	$	1,014,000	2.9	%	$	7.86		Lowe’s
The Centre	IN	Indianapolis	$	996,562		$	0	$	996,562	2.8	%	$	12.35		Osco
The Corner	IN	Indianapolis	$	477,364		$	0	$	477,364	1.4	%	$	11.22		Hancock Fabrics
Stoney Creek Commons	IN	Indianapolis	(*		)	$	223,000	$	223,000	0.6	%	(*		)	Lowe’s (non-owned)
50 S. Morton	IN	Indianapolis	$	114,000		$	0	$	114,000	0.3	%	$	57.00
Ridge Plaza	NJ	Oak Ridge	$	1,732,090		$	0	$	1,732,090	4.9	%	$	15.96		A&P, CVS
Eastgate Pavilion	OH	Cincinnati	$	2,209,767		$	0	$	2,209,767	6.3	%	$	9.54		Bed Bath Beyond, Dick’s, DSW, Value City Furniture, PETsMart, Best Buy
82nd & Otty	OR	Portland	$	273,156		$	122,500	$	395,656	1.1	%	$	27.75
Plaza at Cedar Hill	TX	Dallas	$	3,501,144		$	0	$	3,501,144	10.0	%	$	11.68		Hobby Lobby, Linens ‘N Things, Marshall’s, Barnes & Noble
Sunland Towne Centre	TX	El Paso	$	2,901,099		$	95,280	$	2,996,379	8.5	%	$	9.53		Kmart, Circuit City, Roomstore, Ross, PETsMart
Galleria Plaza	TX	Dallas	$	1,193,750		$	0	$	1,193,750	3.4	%	$	26.94		Ultimate Electronics
Cedar Hill Village	TX	Dallas	$	643,508		$	0	$	643,508	1.8	%	$	14.54		Ultimate Electronics, JC Penny (non-owned)
Preston Commons	TX	Dallas	$	552,652		$	0	$	552,652	1.6	%	$	23.42		Lowe’s (non-owned)
Burlington Coat	TX	San Antonio	$	483,300		$	0	$	483,300	1.4	%	$	4.50		Burlington Coat Factory
50th & 12th	WA	Seattle	$	475,000		$	0	$	475,000	1.3	%	$	32.76		Walgreens
176th & Meridian	WA	Seattle	$	433,000		$	0	$	433,000	1.2	%	$	29.74		Walgreens
Four Corner Square	WA	Seattle	$	682,234		$	0	$	682,234	1.9	%	$	10.47		Johnson Hardware Store
Total			$	34,165,000		$	1,022,180	$	35,187,180	100.0	%	$	10.57

Note: An (*) indicates that this property consists of parcels which are ground leased to tenants.

30

Operating Commercial Properties

AS OF DECEMBER 31, 2004

Property	MSA	Year Built/ Renovated	Acquired, Redeveloped, or Developed	Owned NRA	Percentage of Owned NRA Leased		Annualized Base Rent		Percentage of Annualized Commercial Base Rent		Base Rent Per Leased Sq. Ft.		Major Tenants
Indiana
Thirty South	Indianapolis	1905/2002	Redeveloped	298,346	94.8	%	$	4,930,221	50.9	%	$	17.43	Eli Lilly, City Securities, Kite Realty Group
Mid America Clinical Labs	Indianapolis	1995/2002	Redeveloped	100,000	100.0	%	$	1,721,000	17.8	%	$	17.21	Mid-America Clinical Laboratories
PEN Products	Indianapolis	2003	Developed	85,875	100.0	%	$	813,236	8.4	%	$	9.47	Indiana Department of Administration
Spring Mill Medical	Indianapolis	1998/2002	Redeveloped	63,431	100.0	%	$	1,523,479	15.7	%	$	24.02	University Medical Diagnostic Associates; Indiana University Health Care Associates
Union Station Parking Garage(1)	Indianapolis	1986	Acquired	N/A	N/A		N/A						Denison Parking
IN State Motor Pool	Indianapolis	2004	Developed	115,000	100.0	%	$	693,450	7.2	%	$	6.03	Indiana Dept. of Administration
Total				662,652	97.7	%	$	9,681,386	100.0	%	$	14.96

(1)2004 annualized rent for Union Station Parking Garage is approximately $500,000.

31

RETAIL OPERATING PORTFOLIO – TENANT BREAKDOWN

AS OF DECEMBER 31, 2004

Retail anchor tenants are defined as tenants of operating retail properties which occupy 10,000 square feet or more.

	Owned Gross Leasable Area				Occupancy						Annualized Base Rent									Annualized Base Rent per Occupied Square Foot
Property	State	Anchors	Shops	Total	Anchors		Shops		Total		Anchors		Shops		Ground Leases			Total		Anchors		Shops		Total
Int’l Speedway Square	FL	200,401	20,500	220,901	100.0	%	100.0	%	100.0	%	$	2,074,376	$	379,650	$		216,400	$	2,670,426	$	10.35	$	18.52	$	11.11
King’s Lake Square	FL	49,805	35,692	85,497	100.0	%	93.9	%	97.5	%	$	361,787	$	658,022	—			$	1,019,809	$	7.26	$	19.62	$	12.24
Wal-Mart Plaza	FL	138,323	39,443	177,766	100.0	%	95.9	%	99.1	%	$	531,795	$	337,541	—			$	869,336	$	3.84	$	8.92	$	4.94
Waterford Lakes	FL	51,703	26,245	77,948	100.0	%	100.0	%	100.0	%	$	408,452	$	482,490	—			$	890,942	$	7.90	$	18.38	$	11.43
Shops at Eagle Creek	FL	51,703	24,241	75,944	100.0	%	79.8	%	93.6	%	$	397,814	$	374,122	—			$	771,936	$	7.69	$	19.34	$	10.86
Circuit City Plaza	FL	33,014	12,892	45,906	100.0	%	69.6	%	91.5	%	$	594,252	$	222,952	—			$	817,204	$	18.00	$	24.84	$	19.46
Centre at Panola	GA	51,674	21,405	73,079	100.0	%	100.0	%	100.0	%	$	413,388	$	410,760	—			$	824,148	$	8.00	$	19.19	$	11.28
Publix at Acworth	GA	37,888	31,740	69,628	100.0	%	100.0	%	100.0	%	$	337,203	$	462,062	—			$	799,265	$	8.90	$	14.56	$	11.48
Silver Glen Crossings	IL	78,675	54,050	132,725	100.0	%	71.4	%	88.4	%	$	812,916	$	814,839	$		85,000	$	1,712,756	$	10.33	$	21.11	$	13.88
Glendale Mall	IN	427,351	151,838	579,189	92.0	%	71.7	%	86.7	%	$	1,463,135	$	1,328,894	$		140,000	$	2,932,029	$	3.72	$	12.21	$	5.56
Boulevard Crossing	IN	74,440	38,256	112,696	100.0	%	71.4	%	90.3	%	$	827,460	$	444,145	$		75,000	$	1,346,605	$	11.12	$	16.26	$	12.50
Hamilton Crossing	IN	30,722	51,652	82,374	100.0	%	88.3	%	92.7	%	$	345,623	$	842,376	$		65,000	$	1,252,999	$	11.25	$	18.47	$	15.56
Fishers Station	IN	57,000	57,457	114,457	100.0	%	72.4	%	86.2	%	$	557,000	$	599,319	—			$	1,156,319	$	9.77	$	14.40	$	11.73
Whitehall Pike	IN	128,997	—	128,997	100.0	%	—		100.0	%	$	1,014,000	—		—			$	1,014,000	$	7.86	—		$	7.86
The Centre	IN	18,720	61,969	80,689	100.0	%	100.0	%	100.0	%	$	170,352	$	826,210	—			$	996,562	$	9.10	$	13.33	$	12.35
The Corner	IN	12,200	30,345	42,545	100.0	%	100.0	%	100.0	%	$	65,636	$	411,728	—			$	477,364	$	5.38	$	13.57	$	11.22
Stoney Creek	IN	—	—	—	—		—		—		—		—		$		223,000	$	223,000	—		—		—
50 S. Morton	IN	—	2,000	2,000	—		100.0	%	100.0	%	—		$	114,000	—			$	114,000	—		$	57.00	$	57.00
Ridge Plaza	NJ	69,612	45,316	114,928	100.0	%	85.8	%	94.4	%	$	986,556	$	745,534	—			$	1,732,090	$	14.17	$	19.16	$	15.96
Eastgate Pavilion	OH	231,730	—	231,730	100.0	%	—		100.0	%	$	2,209,767	—		—			$	2,209,767	$	9.54	—		$	9.54
82nd & Otty	OR	—	9,845	9,845	—		100.0	%	100.0	%	—		$	273,156	$		122,500	$	395,656	—		$	27.75	$	27.75
Plaza at Cedar Hill	TX	227,106	72,677	299,783	100.0	%	100.0	%	100.0	%	$	2,157,468	$	1,343,676	—			$	3,501,144	$	9.50	$	18.49	$	11.68
Sunland Towne Centre	TX	277,220	30,375	307,595	100.0	%	89.2	%	98.9	%	$	2,449,403	$	451,696	$		95,280	$	2,996,379	$	8.84	$	16.66	$	9.53
Galleria Plaza	TX	31,396	12,910	44,306	100.0	%	100.0	%	100.0	%	$	839,844	$	353,906	—			$	1,193,750	$	26.75	$	27.41	$	26.94
Cedar Hill Village	TX	32,231	12,031	44,262	100.0	%	100.0	%	100.0	%	$	402,888	$	240,620	—			$	643,508	$	12.50	$	20.00	$	14.54
Preston Commons	TX	—	27,564	27,564	—		85.6	%	85.6	%	—		$	552,652	—			$	552,652	—		$	23.42	$	23.42
Burlington Coat	TX	107,400	—	107,400	100.0	%	—		100.0	%	$	483,300	—		—			$	483,300	$	4.50	—		$	4.50
50th & 12th	WA	14,500	—	14,500	100.0	%	—		100.0	%	$	475,000	—		—			$	475,000	$	32.76	—		$	32.76
176th & Meridian	WA	14,560	—	14,560	100.0	%	—		100.0	%	$	433,000	—		—			$	433,000	$	29.74	—		$	29.74
Four Corner Square	WA	20,512	52,574	73,086	100.0	%	84.9	%	89.1	%	$	126,672	$	555,562	—			$	682,234	$	6.18	$	12.45	$	10.47
Total		2,468,883	923,017	3,391,900	98.6	%	86.4	%	95.3	%	20,939,087		$	13,225,912	$	1,022,180		$	35,187,180	$	8.60	$	16.58	$	10.57

32

2004 ACQUISITIONS OF OPERATING PROPERTIES

Name of Operating Property	MSA	Date Acquired	Purchase Price			Assumed Debt		Total GLA	Owned GLA	Major Tenants and Non-Owned Anchors
Silver Glen Crossings	Chicago, Illinois	04/01/04	$	23,200,000		$	—	138,274	132,725	Dominick’s, MC Sports
Cedar Hill Village	Dallas, Texas	06/28/04	6,750,000			—		139,092	44,262	Ultimate Electronics, JC Penney (non-owned)
Galleria Plaza	Dallas, Texas	06/29/04	5,960,000			—		44,306	44,306	Ultimate Electronics
Wal-Mart Plaza	Gainesville, Florida	07/01/04	8,325,000			—		177,766	177,766	Wal-Mart, Books A Million, Save A Lot
Fishers Station	Indianapolis, Indiana	07/23/04	7,100,000			1,404,753		114,457	114,457	Marsh Supermarket
Hamilton Crossing	Indianapolis, Indiana	08/19/04	15,500,000			—		87,374	82,374	Office Depot
Publix at Acworth	Atlanta, Georgia	08/20/04	9,200,000			—		69,628	69,628	Publix, CVS
Waterford Lakes	Orlando, Florida	08/20/04	8,950,000			—		77,948	77,948	Winn-Dixie
Plaza at Cedar Hill	Dallas, Texas	08/31/04	37,900,000			27,374,359		299,783	299,783	Hobby Lobby, Linens ‘N Things, Marshall’s, Barnes ‘n Noble
Sunland Towne Centre	El Paso, Texas	09/16/04	32,000,000			17,790,582		312,571	307,595	Kmart, Circuit City, Roomstore, Ross, PETsMART
Centre at Panola	Atlanta, Georgia	09/30/04	9,124,500			4,482,277		73,079	73,079	Publix
Eastgate Pavilion	Cincinnati, Ohio	12/01/04	27,500,000			—		231,730	231,730	Bed Bath Beyond, Dick’s, DSW, Value City Furniture, Petsmart, Best Buy
Four Corner Square	Seattle, Washington	12/20/04	10,500,000			—		73,086	73,086	Johnson Hardware Store
Acquisition Subsequent to December 31, 2004:	Fox Lake Crossing Chicago, Illinois	02/07/05	15,500,000		(1)	12,281,185		99,100	99,100	Dominick’s

(1)Excludes tax-increment financing (TIF) receivable of $1.5 million.

33