EX-99.2 4 exhibit99-2.htm KITE REALTY GROUP TRUST FOURTH QUARTER

SUPPLEMENTAL INFORMATION – DECEMBER 31, 2006

PAGE NO.	TABLE OF CONTENTS
3	Corporate Profile
4	Contact Information
5	Important Notes
6	Corporate Structure Chart
7	Condensed Consolidated Balance Sheets
8	Consolidated Statements of Operations for the Three and Twelve Months Ended December 31
9	Funds from Operations and Other Financial Information for the Three and Twelve Months Ended December 31
10	Market Capitalization
11	Same Property Net Operating Income
12	Net Operating Income by Quarter
13	Summary of Outstanding Debt as of December 31, 2006
14	Schedule of Outstanding Debt as of December 31, 2006
17	Joint Venture Summary – Unconsolidated Properties
18	Condensed Combined Balance Sheets of Unconsolidated Properties
19	Condensed Combined Statements of Operations of Unconsolidated Properties for the Three and Twelve Months Ended December 31
20	Top 10 Retail Tenants by Gross Leasable Area
21	Top 25 Tenants by Annualized Base Rent
22	Lease Expirations – Operating Portfolio
23	Lease Expirations – Retail Anchor Tenants
24	Lease Expirations – Retail Shops
25	Lease Expirations – Commercial Tenants
26	Summary Retail Portfolio Statistics
27	Summary Commercial Portfolio Statistics
28	Development Pipeline
29	Other Development Activity
30	Geographic Diversification – Operating Portfolio
31	Operating Retail Properties
35	Operating Commercial Properties
36	Retail Operating Portfolio – Tenant Breakdown
37	Acquisition of Properties




p. 2	Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

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. As of December 31, 2006, we owned interests in 54 operating properties totaling approximately 8.1 million square feet and an additional 1.7 million square feet in 11 properties currently under development. 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 existing infrastructure and relationships to generate attractive risk-adjusted returns.

Company Highlights as of December 31, 2006

Ø	Operating Retail Properties	49
Ø	Operating Commercial Properties	5
Ø	Total Properties Under Development	11
Ø	States	9
Ø	Total GLA/NRA (operating)	8,138,752
Ø	Owned GLA/NRA (operating)	5,794,086
Ø	Percentage of Owned GLA Leased – Retail Operating	93.4%
Ø	Percentage of Owned NRA Leased – Commercial Operating	91.7%
Ø	Total Full-Time Employees	110

Stock Listing

New York Stock Exchange symbol: KRG


p. 3	Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

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:	Analyst Coverage:

Daniel R. Sink, Chief Financial Officer	BMO Capital Markets	RBC Capital Markets
Kite Realty Group Trust	Mr. Paul E. Adornato, CFA	Mr. Rich Moore
30 South Meridian Street, Suite 1100	(212) 885-4170	(216) 378-7625
Indianapolis, IN 46204	paul.adornato@bmo.com	rich.moore@rbccm.com
(317) 577-5609
dsink@kiterealty.com	Cantor Fitzgerald	Stifel, Nicholaus & Company, Inc.
	Mr. Philip J. Martin	Mr. David M. Fick, CPA/Mr. Nathan Isbee
Financial Relations Board	(312) 469-7485	(410) 454-5018/(410) 454-4143
Mr. John Waelti	pmartin@cantor.com	dmfick@stifel.com
(312) 640-6760		nisbee@stifel.com
jwaelti@frbir.com	Citigroup Global Markets
	Mr. Jonathan Litt/Ms. Ambika Goel	Wachovia Securities
	(212) 816-0231/(212) 816-6981	Mr. Jeffrey J. Donnelly, CFA
Transfer Agent:	jonathan.litt@citigroup.com	(617) 603-4262
	ambika.goel@citigroup.com	jeff.donnelly@wachovia.com
LaSalle Bank, National Association
Mr. Joseph Pellicore	Goldman, Sachs & Co.
135 South LaSalle Street	Mr. Dennis Maloney
Chicago, IL 60603-3499	(212) 902-1970
(312) 904-2000	dennis.maloney@gs.com
joseph.pellicore@abnamro.com
	Lehman Brothers
Stock Specialist:	Mr. David Harris
	(212) 526-1790
Van der Moolen Specialists USA, LLC	dharris4@lehman.com
45 Broadway
32^ndFloor	Raymond James
New York, NY 10006	Mr. Paul Puryear/Mr. Ken Avalos
(646) 576-2707	(727) 567-2253/(727) 567-2660
	paul.puryear@raymondjames.com
	ken.avalos@raymondjames.com


p. 4	Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

IMPORTANT NOTES

Interim Information

This Quarterly Financial Supplement contains historical information of Kite Realty Group Trust (“the Company” or “KRG”) and is intended to supplement the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, 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 supplemental information package 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 ownership and 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;
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, including, in particular, the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2005, and in our quarterly reports on Form 10-Q.

The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

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 (determined in accordance with generally accepted accounting principles (GAAP)), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

Considering 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 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 satisfy 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 this presentation of NOI is helpful to investors as a measure of our 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 income, 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 the basis in our assets from our operating results. NOI should not, however, be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of our financial performance.


p. 5	Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

CORPORATE STRUCTURE CHART – DECEMBER 31, 2006


p. 6	Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	December 31, 2006			December 31, 2005
Assets:
Investment properties, at cost:
Land	$	190,886,884		$	172,509,684
Land held for development		21,687,309			51,340,820
Buildings and improvements		582,715,399			485,129,649
Furniture, equipment and other		5,492,726			5,675,980
Construction in progress and other		155,569,117			65,903,868
		956,351,435			780,560,001
Less accumulated depreciation		(63,726,825	)		(41,825,911	)
		892,624,610			738,734,090

Cash and cash equivalents		23,952,594			15,208,835
Tenant receivables, including accrued straight-line rent of $4.8 million and $3.3 million,
respectively, net of allowance for bad debts		15,215,858			11,302,923
Other receivables		18,247,435			6,082,511
Investments in unconsolidated entities, at equity		1,174,371			1,303,919
Escrow deposits		8,604,580			6,718,198
Deferred costs, net		17,532,939			17,380,288
Prepaid and other assets		5,808,926			2,499,042
Total Assets	$	983,161,313		$	799,229,806
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness	$	566,975,980		$	375,245,837
Accounts payable and accrued expenses		33,007,119			30,642,822
Deferred revenue and other liabilities		30,156,299			25,369,152
Minority interest		4,295,723			4,847,801
Total Liabilities		634,435,121			436,105,612

Commitments and contingencies

Limited Partners' interests in Operating Partnership		78,812,120			84,244,814

Shareholders’ Equity:
Preferred shares, $.01 par value, 40,000,000 shares authorized, no shares issued and
outstanding		-			-
Common shares, $.01 par value, 200,000,000 shares authorized,
28,842,831 shares and 28,555,187 shares issued and outstanding		288,428			285,552
Additional paid in capital		291,159,647			288,976,563
Unearned compensation		-			(808,015	)
Accumulated other comprehensive income		297,540			427,057
Accumulated deficit		(21,831,543	)		(10,001,777	)
Total Shareholders' Equity		269,914,072			278,879,380
Total Liabilities and Shareholders' Equity	$	983,161,313		$	799,229,806

p. 7	Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


CONSOLIDATED STATEMENTS OF OPERATIONS – THREE AND TWELVE MONTHS

(UNAUDITED)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Revenue:
Minimum rent	$	17,639,197		$	14,808,055		$	67,146,135		$	54,984,632
Tenant reimbursements		4,730,484			4,054,643			16,631,735			11,951,557
Other property related revenue		2,795,632			2,027,454			6,358,086			5,793,443
Construction and service fee revenue		14,219,610			12,946,751			41,447,364			26,419,801
Other income, net		100,717			65,205			344,537			215,422
Total revenue		39,485,640			33,902,108			131,927,857			99,364,855

Expenses:
Property operating		3,828,780			4,230,328			13,577,791			12,343,345
Real estate taxes		3,306,361			2,480,710			11,259,794			7,458,563
Cost of construction and services		13,021,605			10,203,261			35,901,364			21,823,278
General, administrative, and other		1,072,282			1,706,052			5,322,594			5,327,735
Depreciation and amortization		7,091,643			6,175,618			29,666,378			21,791,136
Total expenses		28,320,671			24,795,969			95,727,921			68,744,057

Operating income		11,164,969			9,106,139			36,199,936			30,620,798

Interest expense		(6,145,435	)		(4,411,460	)		(21,470,363	)		(18,089,421	)
Loss on sale of asset		-			-			(764,008	)		-
Income tax expense of taxable REIT subsidiary		(324,948	)		(809,178	)		(965,532	)		(1,041,463	)
Minority interest in income of consolidated subsidiaries		(38,966	)		(550,599	)		(117,469	)		(1,267,122	)
Equity in earnings of unconsolidated entities		64,469			(26,225	)		286,452			252,511
Limited Partners’ interests in the continuing operations of the Operating Partnership		(1,063,010	)		(1,137,647	)		(2,989,366	)		(3,330,432	)

Income from continuing operations		3,657,079			2,171,030			10,179,650			7,144,871

Discontinued operations:

Operating income from discontinued operations, net of Limited Partners’ interests		-			191,963			-			765,962
Gain on sale of operating partnership, net of Limited Partners’ interests		-			5,525,007			-			5,525,007

Income from discontinued operations		-			5,716,970			-			6,290,969

Net income	$	3,657,079		$	7,888,000		$	10,179,650		$	13,435,840

Income per common share – basic:
Continuing operations	$	0.13		$	0.08		$	0.35		$	0.33
Discontinued operations		-			0.20			-			0.30
	$	0.13		$	0.28		$	0.35		$	0.63
Income per common share – diluted:
Continuing operations	$	0.13		$	0.08		$	0.35		$	0.33
Discontinued operations		-			0.20			-			0.29
	$	0.13		$	0.28		$	0.35		$	0.62

Weighted average common shares outstanding – basic		28,842,092			28,105,820			28,733,228			21,406,980
Weighted average common shares outstanding – diluted		29,099,790			28,219,941			28,903,114			21,520,061

Dividends declared per common share	$	0.1950		$	0.1875		$	0.7650		$	0.7500

p. 8	Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


FUNDS FROM OPERATIONS AND OTHER FINANCIAL INFORMATION – THREE AND TWELVE

MONTHS

	Three Months Ended December 31,						Year Ended December 31,
Funds from Operations:	2006			2005			2006			2005
Net income	$	3,657,079		$	7,888,000		$	10,179,650		$	13,435,840
Add loss on sale of asset, net of tax		-			-			458,405			-
Less gain on sale of operating property		-			(7,212,402	)		-			(7,212,402	)
Add Limited Partners' interests in income		1,063,010			2,883,132			2,989,366			5,329,298
Add depreciation and amortization of consolidated entities and discontinued
operations, net of minority interest		7,004,407			6,228,735			29,313,102			22,124,355
Add depreciation and amortization of unconsolidated entities		100,199			145,435			401,549			344,600
Funds from Operations of the Kite Portfolio¹		11,824,695			9,932,900			43,342,072			34,021,691
Less Limited Partners' interests in FFO		(2,654,425	)		(2,258,775	)		(9,838,650	)		(9,629,945	)
Funds from Operations allocable to the Company¹	$	9,170,270		$	7,674,125		$	33,503,422		$	24,391,746

Basic FFO per share of the Kite Portfolio	$	0.32		$	0.27		$	1.16		$	1.14
Diluted FFO per share of the Kite Portfolio	$	0.32		$	0.27		$	1.16		$	1.13

Basic weighted average common shares outstanding		28,842,092			28,105,820			28,733,228			21,406,980
Diluted weighted average common shares outstanding		29,099,790			28,219,941			28,903,114			21,520,061

Basic weighted average common shares and units outstanding		37,244,707			36,724,484			37,217,588			29,903,174
Diluted weighted average common shares and units outstanding		37,502,405			36,838,605			37,387,473			30,016,255

Other Financial Information:

Recurring capital expenditures²
Tenant improvements	$	35,827		$	1,117,996		$	1,274,731 ³		$	1,361,987
Leasing commissions		163,843			98,742			749,929 ⁴			224,936
Capital improvements		297,531			46,038			450,383			465,705
Scheduled debt principal payments		634,886			598,400			2,466,655			2,569,238
Straight line rent		253,074			234,458			1,578,442			1,672,710
Market rent amortization income from acquired leases		1,014,560			838,560			4,192,550			3,488,609
Market debt adjustment		107,714			359,386			430,857			1,437,545
Capitalized interest		3,682,922			1,335,430			10,680,000			3,507,372



____________________
1 “Funds from Operations of the Kite Portfolio” represents 100% of the operating performance of the Operating Partnership’s real estate properties and construction and service subsidiaries in which the Company owns an interest. “Funds from Operations allocable to the Company” reflects a reduction for the Limited Partners’ diluted weighted average interests in the Operating Partnership.
2 Excludes tenant improvements and leasing commissions relating to development projects and first-generation space.
3 Of this amount, $988,153 represents tenant improvements for Shoe Pavilion at Galleria Plaza and 24 Hour Fitness at Cedar Hill Village.
4 Of this amount, $198,404 represents leasing commissions for Shoe Pavilion at Galleria Plaza and 24 Hour Fitness at Cedar Hill Village.

p. 9	Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


MARKET CAPITALIZATION AS OF DECEMBER 31, 2006

			Total		Percent of
	Percent of		Market		Total Market
	Total Equity		Capitalization		Capitalization (Note)
Equity Capitalization:
Total Common Shares Outstanding	77.4	%		28,842,831
Operating Partnership ("OP") Units	22.6	%		8,402,615
Combined Common Shares and OP Units	100.0	%		37,245,446
Market Price at December 31, 2006			$	18.62
Total Equity Capitalization			$	693,510,205	54	%
Debt Capitalization:
Company Outstanding Debt			$	566,975,980
Pro-rata Share of Joint Venture Debt				22,753,733
Total Debt Capitalization				589,729,713	46	%
Total Market Capitalization			$	1,283,239,918	100	%

Note: Based on the closing price of KRG’s common shares on February 19, 2007 of $20.88, equity capitalization and debt capitalization was 57% and 43% respectively.

p. 10

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

SAME PROPERTY NET OPERATING INCOME (NOI)

	Three Months Ended December 31,								Twelve Months Ended December 31,
	2006			2005			% Change		2006			2005			% Change
Number of Properties at period end¹		39			39					39			39

Occupancy at period-end		96.9	%		97.5	%				96.9	%		97.5	%

Minimum rent²	$	13,064,286		$	12,804,114				$	46,227,403		$	45,653,883
Tenant recoveries		3,248,085			3,212,010					10,512,398			9,722,456
Other income		619,428			544,370					964,121			724,544
Pro rata share of revenue – unconsolidated joint venture properties		417,189			422,690					1,809,325			1,795,949
		17,348,988			16,983,184					59,513,247			57,896,832

Property operating expenses		3,032,307			2,863,450					9,596,360			9,097,883
Real estate taxes		2,282,482			2,113,561					7,359,885			6,648,385
Pro rata share of expenses – unconsolidated joint venture properties		109,619			156,626					546,125			610,413
		5,424,408			5,133,637					17,502,370			16,356,681
Net operating income – same properties (39 properties)		11,924,580			11,849,547		0.6	%		42,010,877			41,540,151		1.1	%
Net operating income (loss) – Galleria Plaza and Cedar Hill Village³		321,137			(484,481	)				891,552			(234,940	)
Net operating income (loss) – Glendale Mall ¹		(449,287	)		(300,948	)				(449,287	)		(300,948	)
Net operating income – Union Station Garage		339,380			405,519					339,380			405,519
Net operating (loss) – Shops at Eagle Creek ^1,4		38,682			121,040					5,782			232,716
Net operating income – including Galleria Plaza, Cedar Hill Village
and Shops at Eagle Creek		12,174,492			11,590,677		5.0	%		42,798,304			41,642,498		2.8	%
Reconciliation to Most Directly Comparable GAAP Measure:

Net operating income – same properties		11,924,580			11,849,547					42,010,877			41,540,151
Net operating income – non-same properties		6,063,291			2,184,499					25,053,839			10,643,819
Less pro rata share of same property unconsolidated joint venture
net operating income		(307,570	)		(266,064	)				(1,263,200	)		(1,185,535	)
Net operating income – construction, service, general and
administrative and other		576,311			1,513,775					64,798			1,413,498
Total Company Net Operating Income		18,256,612			15,281,757					65,866,314			52,411,933
Total other income (expense)		25,503			(576,824	)				168,983			(1,014,611	)
Total other expenses		(13,562,026	)		(11,396,256	)				(52,102,273	)		(40,922,019	)
Loss on sale of asset		-			-					(764,008	)		-
Limited Partners’ interests in the continuing operations of the
Operating Partnership		(1,063,010	)		(1,137,647	)				(2,989,366	)		(3,330,432	)
Operating income from discontinued operations, net of Limited Partners’ interests		-			191,963					-			765,962
Gain on sale of operating property, net of Limited Partners’ interests		-			5,525,007					-			5,525,007

Net income	$	3,657,079		$	7,888,000				$	10,179,650		$	13,435,840

____________________
¹ Same property analysis excludes Glendale Mall and Shops at Eagle Creek for the third and fourth quarter as the Company pursues redevelopment of these properties. See note (3) below.
² For the twelve months ended December 31, 2006 minimum rent excludes the write-off of the in-place lease liability of approximately $458,000 related to Winn-Dixie at Shops at Eagle Creek. See note (4) below.
³ Ultimate Electronics ceased paying rent at Galleria Plaza and Cedar Hill Village in the months of May 2005 and June 2005, respectively. Late in the first quarter of 2006, Shoe Pavilion and 24 Hour Fitness replaced Ultimate Electronics at Galleria Plaza and Cedar Hill Village, respectively. As a result of the timing of the re-tenanting of the spaces in Galleria Plaza and Cedar Hill Village, these properties have been excluded from the information presented in order to provide for a more meaningful comparison of Same Property results.
⁴In May 2006, Winn-Dixie rejected its lease with the Company at Shops at Eagle Creek. In connection with this lease termination, the Company wrote off all related assets and liabilities, including the in-place lease liability to minimum rent. During the third quarter of 2006, the Company began the process of re-tenanting the space formerly occupied by Winn-Dixie. As a result, Shops at Eagle Creek has been excluded from the Same Property analysis for the third and fourth quarter.

The Company believes that NOI is helpful to investors as a measure of its operating performance because it excludes various items included in net income that do not relate to or are not indicative of its operating performance, such as depreciation and amortization and interest expense. The Company believes that Same Property NOI is helpful to investors as a measure of its operating performance because it includes only the NOI of properties that have been owned for the full period presented, which eliminates disparities in net income due to the redevelopment, acquisition or disposition of properties during the particular period presented, and thus provides a more consistent metric for the comparison of the Company's properties. NOI and Same Property NOI should not, however, be considered as alternatives to net income (calculated in accordance with GAAP) as indicators of the Company's financial performance.

p. 11

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

NET OPERATING INCOME BY QUARTER

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2006			2006			2006			2006			2005
Revenue:
Minimum rent	$	17,639,197		$	17,262,427		$	16,509,839		$	15,734,672		$	14,808,055
Tenant reimbursements		4,730,484			3,787,767			4,417,611			3,695,873			4,054,643
Other property related revenue		2,795,632			1,565,787			944,966			1,051,701			2,027,454
Other income, net		100,717			158,632			31,312			53,876			65,205
		25,266,030			22,774,613			21,903,728			20,536,122			20,955,357
Expenses:
Property operating		3,828,780			3,439,853			3,274,984			3,034,174			4,230,328
Real estate taxes		3,306,361			2,323,799			3,122,720			2,506,914			2,480,710
		7,135,141			5,763,652			6,397,704			5,541,088			6,711,038
Net Operating Income – Properties		18,130,889			17,010,961			15,506,024			14,995,034			14,244,319
Other Income (Expense):
Construction and service fee revenue¹		14,219,610			10,293,822			9,036,996			7,896,936			12,946,751
Cost of construction and services¹		(13,021,605	)		(7,795,070	)		(7,899,325	)		(7,185,364	)		(10,203,261	)
General, administrative, and other		(1,072,282	)		(1,305,599	)		(1,601,176	)		(1,343,537	)		(1,706,052	)
Depreciation and amortization		(7,091,643	)		(7,209,586	)		(7,842,914	)		(7,522,235	)		(6,175,618	)
		(6,965,920	)		(6,016,433	)		(8,306,419	)		(8,154,200	)		(5,138,180	)
Earnings Before Interest and Taxes		11,164,969			10,994,528			7,199,605			6,840,834			9,106,139
Interest expense		(6,145,435	)		(6,139,761	)		(4,615,175	)		(4,569,992	)		(4,411,460	)
Loss on sale of asset¹		-			-			(764,008	)		-			-
Income tax (expense) benefit of taxable REIT subsidiary		(324,948	)		(777,600	)		150,303			(13,287	)		(809,178	)
Minority interest in income of consolidated subsidiaries		(38,966	)		(2,993	)		(37,986	)		(37,524	)		(550,599	)
Equity in earnings (loss) of unconsolidated entities		64,469			72,261			61,749			87,973			(26,225	)
Limited partners’ interests in the continuing operations of the
Operating Partnership		(1,063,010	)		(936,782	)		(454,117	)		(535,457	)		(1,137,647	)
Income From Continuing Operations		3,657,079			3,209,653			1,540,371			1,772,547			2,171,030
Operating income from discontinued operations, net of
Limited Partners’ interests²		-			-			-			-			191,963
Gain on sale of operating property, net of Limited Partners’ interests		-			-			-			-			5,525,007
Net income	$	3,657,079		$	3,209,653		$	1,540,371		$	1,772,547		$	7,888,000
NOI/Revenue		71.8%			74.7%			70.8%			73.0%			68.0%
Recovery Ratio³		66.3%			65.7%			69.0%			66.7%			60.4%

____________________
¹In June 2006, the Company sold Marsh Supermarkets in Naperville, Illinois.
²In December 2005, the Company sold Mid-America Clinical Labs in Indianapolis, Indiana.
³ “Recovery Ratio” is computed by dividing property operating and real estate tax expense into tenant reimbursements.

p. 12

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

SUMMARY OF OUTSTANDING DEBT AS OF DECEMBER 31, 2006

TOTAL OUTSTANDING DEBT
	Outstanding					Weighted Average		Weighted Average
	Amount			Ratio		Interest Rate		Maturity (in years)
Fixed Rate Debt:
Consolidated	$	344,030		59	%	5.98	%	7.9
Unconsolidated		8,385		1	%	6.60	%	5.5
Floating Rate Debt (Hedged) ²		50,000		9	%	5.57	%	0.6
Total Fixed Rate Debt		402,415		69	%	5.94	%	6.9
Variable Rate Debt:³
Construction Loans		94,505		16	%	6.95	%	1.2
Other Variable		126,171		22	%	6.74	%	0.7
Floating Rate Debt (Hedged) ²		(50,000	)	-9	%	-6.68	%	-0.6
Unconsolidated		14,369		2	%	7.58	%	0.2
Total Variable Rate Debt		185,045		31	%	6.93	%	0.9
Net Premiums		2,270		N/A		N/A		N/A
Total	$	589,730		100	%	6.25	%	5.0

SCHEDULE OF MATURITIES BY YEAR
	Mortgage Debt								Total				Total
					Secured				Consolidated		KRG Share Of		Consolidated
	Annual		Term		Revolving		Construction		Outstanding		Unconsolidated		and
	Maturity		Maturities		Credit Facility		Loans		Debt		Mortgage Debt		Unconsolidated
2007	$	2,703	$	9,768	$	111,550	$	37,861	$	161,882	$	14,573	$	176,455
2008		2,652		8,292		0		46,215		57,159		218		57,377
2009		2,920		27,452		0		10,429		40,801		2,223		43,024
2010		3,030		0		0		0		3,030		97		3,127
2011		3,183		19,655		0		0		22,838		103		22,941
2012		3,633		35,356		0		0		38,989		109		39,098
2013		3,646		4,027		0		0		7,673		5,431		13,104
2014		3,342		27,567		0		0		30,909		0		30,909
2015		2,963		38,301		0		0		41,264		0		41,264
2016 and beyond		4,815		155,346		0		0		160,161		0		160,161
Net Premiums		0		0		0		0		2,270		0		2,270
Total	$	32,887	$	325,764	$	111,550	$	94,505	$	566,976	$	22,754	$	589,730

____________________ ¹Dollars in thousands.
²These debt obligations are hedged by interest rate swap agreements.
³Variable rate debt %, net of swap transactions:
- Construction	16	%	$	94,505
- Other Variable	13	%		76,171
- Unconsolidated	2	%		14,369	(Includes debt on acquisition land held for development)
	31	%	$	185,045

p. 13

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


SCHEDULE OF OUTSTANDING DEBT AS OF DECEMBER 31, 2006	¹

CONSOLIDATED DEBT

					Balance as of			Monthly Debt Service
*Fixed Rate Debt:*	Lender/Servicer	Interest Rate		Maturity Date	Dec. 31, 2006			as of Dec. 31, 2006
176th & Meridian	Wachovia Bank	5.67	%	11/11/14		$4,157			$25
50th & 12th	Wachovia Bank	5.67	%	11/11/14		4,576			27
Boulevard Crossing	Wachovia Bank	5.11	%	12/11/09		12,303			69
Centre at Panola, Phase I	JP Morgan Chase	6.78	%	1/1/22		4,165			37
Cool Creek Commons	Lehman Brothers Bank	5.88	%	4/11/16		18,000			88
Corner Shops, The	Sun Life Assurance Co.	7.65	%	7/1/11		1,801			17
Fox Lake Crossing	Wachovia Bank	5.16	%	7/1/12		11,932			69
Geist Pavilion	KeyBank	5.58	%	1/1/17		11,125			52
Indian River Square	Wachovia Bank	5.42	%	6/11/15		13,300			60
Indiana State Motor Pool	Old National	5.38	%	3/24/08		4,064			18
International Speedway Square	Lehman Brothers Bank	7.17	%	3/11/11		19,448			139
Kedron Village	Wachovia Bank	5.56	%	1/11/17		29,700			138
Pine Ridge	Lehman Brothers Bank	6.34	%	10/11/16		17,500			93
Plaza at Cedar Hill	GECC	7.38	%	2/1/12		26,681			193
Plaza Volente	Wachovia Bank	5.42	%	6/11/15		28,680			130
Preston Commons	Wachovia Bank	5.90	%	3/11/13		4,526			28
Ridge Plaza	Wachovia Bank	5.15	%	10/11/09		16,482			93
Riverchase	Lehman Brothers Bank	6.34	%	10/11/16		10,500			56
Sunland Towne Centre	KeyBank	6.01	%	7/1/16		25,000			125
Thirty South	CS First Boston	6.09	%	1/11/14		22,686			142
Traders Point	Wachovia Bank	5.86	%	10/11/16		48,000			234
Whitehall Pike	Banc One Capital Funding	6.71	%	7/5/18		9,404			77
Subtotal						$344,030			$1,910
	Lender	Interest Rate		Maturity Date		Balance as of			Monthly Debt Service
*Floating Rate Debt (Hedged):*						Dec. 31, 2006			as of Dec. 31, 2006
Collateral Pool Properties²	KeyBank	5.65	%	8/1/07		$35,000			$165
Collateral Pool Properties²	KeyBank	5.38	%	8/1/07		15,000			67
Subtotal						$50,000			$232
TOTAL CONSOLIDATED FIXED RATE DEBT						$394,030			$2,142
TOTAL NET PREMIUMS						$2,270
*Variable Rate Debt:*	Lender	Interest Rate³		Maturity Date		Balance as of
*Mortgages*						Dec. 31, 2006
Courthouse Shadows⁴	Lehman Brothers Bank	LIBOR + 150		1/5/07		$9,768
Fishers Station⁵	National City Bank	LIBOR + 275		9/1/08		4,853
Subtotal							$14,621

____________________
1 Dollars in thousands.
2 The Company entered into $35 million and $15 million fixed rate swap agreements, which are designated as hedges against the revolving credit facility.
3 At December 31, 2006, one-month LIBOR and Prime interest rates were 5.33% and 8.25%, respectively.
4 The Maturity Date has been extended to March 5, 2007.
5 The Company has a 25% interest in this property. This loan is guaranteed by Kite Realty Group, LP.

p. 14

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


SCHEDULE OF OUTSTANDING DEBT AS OF DECEMBER 31, 2006 (CONTINUED)	¹

Variable Rate Debt:

Total

Balance as of

Construction Loans

Servicer

Interest Rate²

Maturity Date

Commitment

Dec. 31, 2006

Bayport Commons³

Bank of America

LIBOR + 125

12/27/08

23,100

5,065

Beacon Hill Shopping Center⁴

Fifth Third Bank

LIBOR + 150

9/30/07

34,800

8,390

Bridgewater Marketplace

Home Federal Bank

LIBOR + 160

6/29/08

12,000

7,162

Cobblestone Plaza⁵

Wachovia Bank

LIBOR + 160

6/29/09

44,500

10,429

Estero Town Center⁶

Wachovia Bank

LIBOR + 165

4/1/08

20,460

14,756

Gateway Shopping Center⁷

Union Bank of California

LIBOR + 150

12/15/07

22,268

7,214

Naperville Marketplace

LaSalle Bank

LIBOR + 175

6/30/07

14,400

9,800

Red Bank Commons

Huntington Bank

LIBOR + 165

3/31/07

4,960

4,799

Sandifur Plaza⁸

LaSalle Bank

LIBOR + 165

2/28/08

5,500

2,777

Tarpon Springs Plaza

Wachovia Bank

LIBOR + 175

4/1/08

20,000

16,455

Traders Point II

Huntington Bank

LIBOR + 165

6/28/07

9,587

7,658

Subtotal

211,575

94,505

Total Available as

Balance as of

Line of Credit

Lender

Interest Rate²

Maturity Date

of Dec. 31, 2006

Dec. 31, 2006

Collateral Pool Properties: ^9,10,11

Wachovia Bank

LIBOR + 135

8/31/07

133,267

111,550

Floating Rate Debt (Hedged)

Collateral Pool Properties¹⁰

KeyBank

LIBOR + 135

8/1/07

(35,000

)

Collateral Pool Properties¹⁰

KeyBank

LIBOR + 135

8/1/07

(15,000

)

Subtotal

50,000

)

Total Consolidated Variable Rate Debt

170,676

TOTAL DEBT PER CONSOLIDATED BALANCE SHEET

566,976

____________________
1 Dollars in thousands.
2 At December 31, 2006, one-month LIBOR and Prime interest rates were 5.33% and 8.25%, respectively.
3 The Company has a preferred return, then a 60% interest. This loan is guaranteed by Kite Realty Group, LP.
4 The Company has a preferred return, then a 50% interest. This loan is guaranteed by Kite Realty Group, LP.
5 The Company has a preferred return, then a 50% interest. This loan is guaranteed by Kite Realty Group, LP.
6 The Company has a preferred return, then a 40% interest. This loan is guaranteed by Kite Realty Group, LP.
7 The Company has a preferred return, then a 50% interest. This loan is guaranteed by Kite Realty Group, LP.
8 The Company has an 80% interest in the Walgreens and 95% in the shops. This loan is guaranteed by Kite Realty Group, LP.
9 There are currently 16 properties encumbered under the line of credit and 28 unencumbered properties and available to expand borrowings under the credit facility. The major unencumbered properties include: 50 S. Morton, Bolton Plaza, Centre at Panola Phase II, Circuit City Plaza, Cornelius Gateway Shops, Delray Marketplace, Fishers Station Marsh, Frisco Bridges, Greyhound Commons, Martinsville Shops, Noblesville Partners, Pipeline Pointe, Shops at Otty, Sunland II, Weston Park, Zionsville Place.
10 The Company entered into a $35 million and $15 million fixed rate swap agreement, which is designated as a hedge against the revolving credit facility.
11 The total amount available for borrowing under the revolving credit facility is $133,267 of which $111,550 was outstanding as of December 31, 2006.

p. 15

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


SCHEDULE OF OUTSTANDING DEBT AS OF DECEMBER 31, 2006 (CONTINUED)	¹

UNCONSOLIDATED DEBT²

Monthly Debt

Balance as of

Service as of

Lender

Interest Rate

Maturity Date

Dec. 31, 2006

Fixed Rate Debt

The Centre

Sun Life

6.99

6/1/2009

3,983

Spring Mill Medical

LaSalle Bank

6.45

9/1/2013

11,990

TOTAL UNCONSOLIDATED DEBT

15,973

118

JOINT VENTURE PARTNERS' SHARE OF TOTAL

UNCONSOLIDATED DEBT

(7,588

)

KRG's SHARE OF TOTAL UNCONSOLIDATED DEBT

8,385

Variable Rate Debt

Total

Balance as of

Construction Loans:

Servicer

Interest Rate²

Maturity Date

Commitment

Dec. 31, 2006

Parkside Town Commons³

LaSalle Bank

LIBOR + 225

2/28/07

40,000

35,922

TOTAL UNCONSOLIDATED VARIABLE RATE DEBT

35,922

JOINT VENTURE PARTNERS' SHARE OF TOTAL

UNCONSOLIDATED VARIABLE RATE DEBT

(21,553

)

KRG's SHARE OF TOTAL UNCONSOLIDATED VARIABLE

RATE DEBT

14,369

TOTAL KRG UNCONSOLIDATED DEBT

22,754

TOTAL KRG CONSOLIDATED DEBT

566,976

TOTAL KRG UNCONSOLIDATED DEBT

22,754

TOTAL KRG DEBT

589,730

____________________
¹ Dollars in thousands.
²The Company owns a 50% interest in Spring Mill Medical and a 60% interest in The Centre.
³ The Company owns a 40% interest in Parkside Town Commons which will change to a 20% ownership upon the commencement of construction. The Company intends to amend the existing land loan to a development loan which will reduce the interest rate.

p. 16

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

JOINT VENTURE SUMMARY – UNCONSOLIDATED PROPERTIES

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

Property	Percentage Owned by the Company
Parkside Town Commons¹	40%
The Centre	60%
Spring Mill Medical	50%

____________________
¹ The Company's 40% interest in Parkside Town Commons will change to a 20% ownership upon the commencement of construction.

p. 17

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

CONDENSED COMBINED BALANCE SHEETS OF UNCONSOLIDATED PROPERTIES

(THE CENTRE, SPRING MILL MEDICAL and PARKSIDE TOWN COMMONS)
(Unaudited)

	December 31, 2006			December 31, 2005
Assets:
Investment properties, at cost
Land	$	2,404,211		$	2,552,075
Buildings and improvements		14,761,198			14,566,616
Furniture and equipment		10,581			3,290
Construction in progress		38,903,133			-
		56,079,123			17,121,981
Less: Accumulated depreciation		(3,254,677	)		(2,793,109	)
		52,824,446			14,328,872

Cash and cash equivalents		804,391			902,443
Tenant receivables, including accrued straight-line rent		113,209			140,124
Escrow Deposits		244,241			-
Deferred costs, net		622,778			670,319
Prepaid and other assets		600			-
Total Assets	$	54,609,665		$	16,041,758

Liabilities and Accumulated Equity (Deficit):
Mortgage and other indebtedness	$	51,895,229		$	16,299,855
Intercompany payable		4,282			-
Accounts payable and accrued expenses		3,514,759			524,792
Total Liabilities		55,414,270			16,824,647
Accumulated equity (deficit)		(804,605	)		(782,889	)
Total Liabilities and Accumulated Equity (Deficit)	$	54,609,665		$	16,041,758

p. 18

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

CONDENSED COMBINED STATEMENTS OF OPERATIONS OF UNCONSOLIDATED PROPERTIES

(THE CENTRE, SPRING MILL MEDICAL AND PARKSIDE TOWN COMMONS)
(Unaudited)

	Three Months Ended December 31,					Year Ended December 31,
	2006		2005			2006		2005
Minimum rent	$	576,011	$	597,663		$	2,366,117	$	2,439,693
Tenant reimbursements		206,726		237,052			968,122		897,703
Other property related revenue		1,657		(36,876	)		45,696		13,335
Total revenue		784,394		797,839			3,379,935		3,350,731

Expenses:
Property operating		184,637		224,442			813,980		899,630
Real estate taxes		19,042		68,910			211,086		253,411
Depreciation and amortization		130,310		128,871			522,218		510,127
Total expenses		333,989		422,223			1,547,284		1,663,168
Operating income		450,405		375,616			1,832,651		1,687,563

Interest expense		271,553		278,644			1,092,367		1,116,199

Net income	$	178,852	$	96,972		$	740,284	$	571,364

p. 19

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

TOP 10 RETAIL TENANTS BY GROSS LEASABLE AREA (GLA)

AS OF DECEMBER 31, 2006

This Table Includes the Following:

Operating Retail Properties
Operating Commercial Properties
Development Property Tenants open for business or ground lease tenants who commenced paying rent as of December 31, 2006

	Number of	Total	Number	Company Owned	Number of Anchor	Anchor Owned
Tenant	Locations	GLA	of Leases	GLA²	Owned Locations	GLA³
Lowe's Home Improvement¹	9	1,247,630	3	128,997	6	1,118,633
Wal-Mart	5	749,649	2	234,649	3	515,000
Target	3	341,640	0	0	3	341,640
Federated Department Stores	1	237,455	1	237,455	0	0
Publix	5	234,246	5	234,246	0	0
Home Depot	5	140,000	0	0	1	140,000
Circuit City	4	132,347	4	132,347	0	0
Dominick's	2	131,613	2	131,613	0	0
Dick's Sporting Goods	2	126,672	2	126,672	0	0
Marsh Supermarkets	2	124,902	2	124,902	0	0
Total	38	3,466,154	21	1,350,881	13	2,115,273

____________________
¹A ground lease with Lowe’s was entered into during the first quarter of 2006. An estimated 165,000 square feet is included in Anchor Owned GLA to account for this property. Another ground lease with Lowe’s was entered into during the second quarter of 2006. An estimated 163,000 square feet is included in Anchor Owned GLA to account for this property.
²Excludes the estimated size of the structures located on land owned by the Company and ground leased to tenants.
³ Includes the estimated size of the structures located on land owned by the Company and ground leased to tenants.

p. 20

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


TOP 25 TENANTS BY ANNUALIZED BASE RENT	^1,2
AS OF DECEMBER 31, 2006

This Table Includes the Following:

Operating Retail Properties
Operating Commercial Properties
Development Property Tenants open for business or ground lease tenants who commenced paying rent as of December 31, 2006

Tenant	Type of Property	Number of Locations	Leased GLA/NRA⁵	% of Owned GLA/NRA of the Portfolio	Annualized Base Rent ^1,2	Annualized Base Rent per Sq. Ft.	% of Total Portfolio Annualized Base Rent


Lowe's Home Center⁴	Retail	3	128,997	2.2%	$2,564,000	$5.67	3.7%
Circuit City	Retail	4	132,347	2.3%	$1,930,190	$14.58	2.8%
Publix	Retail	5	234,246	4.0%	$1,837,588	$7.84	2.7%
State of Indiana	Commercial	3	210,393	3.6%	$1,663,733	$7.91	2.4%
Marsh Supermarkets	Retail	2	124,902	2.1%	$1,633,958	$13.08	2.4%
Dominick's	Retail	2	131,613	2.3%	$1,411,728	$10.73	2.0%
Bed Bath & Beyond	Retail	4	109,296	1.9%	$1,356,866	$12.41	2.0%
Dick's Sporting Goods	Retail	2	126,672	2.2%	$1,220,004	$9.63	1.8%
Ross Stores	Retail	4	118,374	2.0%	$1,210,785	$10.23	1.7%
Eli Lilly⁶	Commercial	1	70,402	1.2%	$1,161,633	$16.50	1.7%
HEB	Retail	1	105,000	1.8%	$1,155,000	$11.00	1.7%
Office Depot	Retail	4	103,294	1.8%	$1,058,351	$10.25	1.5%
Walgreens	Retail	3	39,070	0.7%	$1,031,023	$26.39	1.5%
Petsmart	Retail	3	77,966	1.3%	$975,998	$12.52	1.4%
Wal-Mart	Retail	2	234,649	4.0%	$930,927	$3.97	1.3%
Kmart	Retail	1	110,875	1.9%	$850,379	$7.67	1.2%
UMDA³	Commercial	1	32,256	0.6%	$844,402	$26.18	1.2%
TJX Companies	Retail	3	88,550	1.5%	$805,312	$9.09	1.2%
Kerasotes⁴	Retail	2	43,050	0.7%	$776,496	$8.92	1.1%
A & P	Retail	1	58,732	1.0%	$763,516	$13.00	1.1%
Old Navy	Retail	3	64,868	1.1%	$748,693	$11.54	1.1%
OfficeMax	Retail	3	69,872	1.2%	$733,970	$10.50	1.1%
Shoe Pavilion	Retail	1	31,396	0.5%	$722,108	$23.00	1.0%
City Securities	Commercial	1	34,949	0.6%	$694,900	$19.88	1.0%
Indiana University Healthcare Associates³	Commercial	1	31,175	0.5%	$622,201	$19.96	0.9%
Total			2,512,944	43.0%	$28,703,761	$9.97	41.5%

____________________
¹ Annualized Base Rent represents the monthly contractual rent for December 2006 for each applicable tenant, multiplied by 12.
² Excludes tenants at development properties that are Build-to-Suits for sale.
³ Property held in unconsolidated joint venture. Annualized Base Rent is reflected at 100 percent.
⁴ Annualized Base Rent Per Sq. Ft. is adjusted to account for the estimated square footage attributed to structures on land owned by the Company and ground leased to tenants.
⁵ Excludes the estimated size of the structures located on land owned by the Company and ground leased to tenants.
⁶ On December 1, 2006, the Company entered into an agreement to terminate its lease with Eli Lilly & Company effective December 31, 2006 as to 29,140 square feet and effective October 1, 2007 as to 70,402 square feet.

p. 21

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


LEASE EXPIRATIONS – OPERATING PORTFOLIO	¹

This Table Includes the Following:

Operating Retail Properties
Operating Commercial Properties
Development Property Tenants open for business or ground lease tenants who commenced paying rent as of December 31, 2006

						Expiring
	Number of		% of Total	Expiring	% of Total	Annualized	Expiring
	Expiring	Expiring	GLA/NRA	Annualized	Annualized	Base Rent	Ground Lease
	Leases²	GLA/NRA³	Expiring	Base Rent⁴	Base Rent	per Sq. Ft.	Revenue
2007⁵	102	381,715	7.0%	$4,583,480	7.0%	$12.01	$800,000
2008	52	456,062	8.4%	$3,596,710	5.5%	$7.89	$0
2009	82	255,326	4.7%	$4,267,400	6.5%	$16.71	$0
2010	76	452,363	8.3%	$5,654,536	8.6%	$12.50	$0
2011	85	643,034	11.9%	$6,072,977	9.2%	$9.44	$0
2012	54	333,123	6.1%	$4,812,094	7.3%	$14.45	$85,000
2013	28	212,744	3.9%	$3,152,817	4.8%	$14.82	$0
2014	35	475,468	8.7%	$5,441,800	8.3%	$11.45	$427,900
2015	41	512,817	9.4%	$6,392,896	9.7%	$12.47	$251,500
2016	31	312,486	5.7%	$4,284,714	6.5%	$13.71	$93,500
Beyond	43	1,407,773	25.9%	$17,444,366	26.6%	$12.39	$2,031,513
Total	629	5,442,911	100.0%	$65,703,790	100.0%	$12.07	$3,689,413

____________________
¹ Excludes tenants at development properties that are Build-to-Suits for sale.
² Lease expiration table reflects rents in place as of December 31, 2006 and does not include option periods; 2007 expirations include 27 month-to-month tenants. This column also excludes ground leases.
³ Expiring GLA excludes estimated square footage attributable to non-owned structures on land owned by the Company and ground leased to tenants.
⁴ Annualized Base Rent represents the monthly contractual rent for December 2006 for each applicable tenant, multiplied by 12. Excludes ground lease revenue.
⁵ On December 1, 2006, the Company entered into an agreement to terminate its lease with Eli Lilly & Company effective December 31, 2006 as to 29,140 square feet and effective October 1, 2007 as to 70,402 square feet.

p. 22

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


LEASE EXPIRATIONS – RETAIL ANCHOR TENANTS	¹

This Table Includes the Following:

Operating Retail Properties
Development Property Tenants open for business or ground lease tenants who commenced paying rent as of December 31, 2006

						Expiring
	Number of		% of Total	Expiring	% of Total	Annualized	Expiring
	Expiring	Expiring	GLA	Annualized Base	Annualized	Base Rent	Ground Lease
	Leases²	GLA³	Expiring	Rent⁴	Base Rent	per Sq. Ft.	Revenue
2007	8	131,258	2.4%	$880,066	1.3%	$6.70	$800,000
2008	3	342,049	6.3%	$1,441,077	2.2%	$4.21	$0
2009	3	69,382	1.3%	$669,318	1.0%	$9.65	$0
2010	12	295,189	5.4%	$2,713,985	4.1%	$9.19	$0
2011	8	455,904	8.4%	$2,499,684	3.8%	$5.48	$0
2012	6	150,399	2.8%	$1,319,858	2.0%	$8.78	$0
2013	1	11,960	0.2%	$161,460	0.3%	$13.50	$0
2014	10	271,018	5.0%	$2,690,031	4.1%	$9.93	$0
2015	11	374,879	6.8%	$3,614,475	5.5%	$9.64	$0
2016	7	220,312	4.1%	$2,394,510	3.6%	$10.87	$0
Beyond	32	1,310,693	24.0%	$15,185,841	23.1%	$11.59	$990,000
Total	101	3,633,043	66.7%	$33,570,305	51.0%	$9.24	$1,790,000

____________________
¹Retail Anchor Tenants are defined as tenants that occupy 10,000 square feet or more. Excludes tenants at development properties that are Build-to-Suits for sale.
² Lease expiration table reflects rents in place as of December 31, 2006 and does not include option periods. This column also excludes ground leases.
³ Expiring GLA excludes estimated square footage attributable to non-owned structures on land owned by the Company and ground leased to tenants.
⁴ Annualized base rent represents the monthly contractual rent for December 2006 for each applicable property, multiplied by 12. Excludes ground lease revenue.

p. 23

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

LEASE EXPIRATIONS – RETAIL SHOPS

This Table Includes the Following:

Operating Retail Properties
Development Property Tenants open for business as of December 31, 2006

						Expiring
	Number of		% of Total	Expiring	% of Total	Annualized	Expiring
	Expiring		GLA	Annualized	Annualized	Base Rent	Ground Lease
	Leases¹	Expiring GLA²	Expiring	Base Rent³	Base Rent	per Sq. Ft.	Revenue
2007	89	175,100	3.2%	$2,464,171	3.8%	$14.07	$0
2008	48	106,048	2.0%	$1,995,695	3.0%	$18.82	$0
2009	79	185,944	3.4%	$3,598,082	5.5%	$19.35	$0
2010	63	148,296	2.7%	$2,760,771	4.2%	$18.62	$0
2011	77	187,130	3.4%	$3,573,293	5.4%	$19.10	$0
2012	46	145,672	2.7%	$2,901,529	4.4%	$19.92	$85,000
2013	23	72,430	1.3%	$1,397,543	2.1%	$19.30	$0
2014	23	54,501	1.0%	$1,363,418	2.1%	$25.02	$427,900
2015	28	92,831	1.7%	$2,049,894	3.1%	$22.08	$251,500
2016	24	92,174	1.7%	$1,890,204	2.9%	$20.51	$93,500
Beyond	9	33,649	0.7%	$791,923	1.3%	$23.53	$1,041,513
Total	509	1,293,775	23.8%	$24,786,523	37.8%	$19.16	$1,899,413

____________________
¹ Lease expiration table reflects rents in place as of December 31, 2006 and does not include option periods; 2007 expirations include 25 month-to-month tenants. This column also excludes ground leases.
² Expiring GLA excludes estimated square footage attributable to non-owned structures on land owned by the Company and ground leased to tenants.
³ Annualized Base Rent represents the monthly contractual rent for December 2006 for each applicable property, multiplied by 12. Excludes ground lease revenue.

p. 24

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

LEASE EXPIRATIONS – COMMERCIAL TENANTS

This Table Includes the Following:

Operating Commercial Properties

						Expiring
	Number of		% of Total	Expiring	% of Total	Annualized
	Expiring		NRA	Annualized	Annualized	Base Rent
	Leases¹	Expiring NRA	Expiring	Base Rent²	Base Rent	per Sq. Ft.
2007³	5	75,357	1.4%	$1,239,243	1.9%	$16.45
2008	1	7,965	0.2%	$159,938	0.2%	$20.08
2009	0	0	0.0%	$0	0.0%	$0.00
2010	1	8,878	0.2%	$179,780	0.3%	$20.25
2011	0	0	0.0%	$0	0.0%	$0.00
2012	2	37,052	0.7%	$590,708	0.9%	$15.94
2013	4	128,354	2.3%	$1,593,814	2.4%	$12.42
2014	2	149,949	2.7%	$1,388,350	2.2%	$9.26
2015	2	45,107	0.8%	$728,527	1.1%	$16.15
2016	0	0	0.0%	$0	0.0%	$0.00
Beyond	2	63,431	1.2%	$1,466,602	2.2%	$23.12
Total	19	516,093	9.5%	$7,346,962	11.2%	$14.24

____________________
¹ Lease expiration table reflects rents in place as of December 30, 2006 and does not include option periods; 2006 expirations include one month-to-month tenant. This column also excludes ground leases.
² Annualized Base Rent represents the monthly contractual rent for December 2006 for each applicable property, multiplied by 12.
³ On December 1, 2006, the Company entered into an agreement to terminate its lease with Eli Lilly & Company effective December 31, 2006 as to 29,140 square feet and effective October 1, 2007 as to 70,402 square feet.

p. 25

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

SUMMARY RETAIL PORTFOLIO STATISTICS

(INCLUDES JOINT VENTURE PROPERTIES)

Retail Portfolio	12/31/06	9/30/06	6/30/06	3/31/06	12/31/05
Company Owned GLA¹– Operating Retail	5,231,434	4,989,635	4,595,183	4,532,104	4,497,658
Total GLA¹– Operating Retail	7,576,100	7,209,584	6,698,265	6,650,386	6,160,940
Projected Company Owned GLA Under Development²	668,646	587,750	581,281	696,896	690,161
Projected Total GLA Under Development	1,673,466	1,598,470	1,535,081	1,579,358	1,823,561
Number of Operating Retail Properties	49	46	43	42	40
Number of Retail Properties Under Development	11	11	11	12	14
Percentage Leased – Operating Retail	93.4%	93.6%	93.0%	94.8%	95.3%
Annualized Base Rent & Ground Lease Revenue – Retail Properties³	$60,819,603	$56,724,615	$51,664,411	$51,480,775	$50,059,285

____________________
¹Company Owned GLA represents gross leasable area owned by the Company. Total GLA includes Company Owned GLA, plus square footage attributable to non-owned outlot structures on land owned by the Company and ground leased to tenants, and non-owned anchor space.
² Projected Company Owned GLA Under Development represents gross leasable 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 owned by the Company and ground leased to tenants, and non-owned anchor space that is existing or under construction.
³Annualized Base Rent represents the monthly contractual rent for December 2006 for each applicable tenant, multiplied by 12.

p. 26

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

SUMMARY COMMERCIAL PORTFOLIO STATISTICS

(INCLUDES JOINT VENTURE PROPERTIES)

Commercial Portfolio 12/31/06 9/30/06 6/30/06 3/31/06 12/31/05

Company Owned Net Rentable Area (NRA)¹ 562,652 562,652 562,652 562,652 562,652

NRA under Development - - - - -

Number of Operating Commercial Properties 5 5 5 5 5

Number of Commercial Properties under Development - - - - -

Percentage Leased – Operating Commercial Properties 91.7 % 96.9 % 96.9 % 97.7 % 97.3 %

Percentage Leased – Commercial Properties under Development - - - -

Annualized Base Rent – Commercial Properties^2,3 $ 7,346,962 $ 7,894,595 $ 7,874,683 $ 7,959,366 $ 7,909,489

____________________
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.
³ Annualized Base Rent includes $728,527 from KRG and subsidiaries as of December 31, 2006.

p. 27

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

DEVELOPMENT PIPELINE

AS OF DECEMBER 31, 2006⁶

2006-2007 Deliveries KRG
Ownership
%⁷ MSA Type of
Property
Actual/
Projected
Opening
Date¹ Projected
Owned
GLA² Projected
Total GLA³ Percent of
Owned
GLA
Occupied⁸ Percent of
Owned GLA
Pre-Leased/
Committed⁵ Total
Estimated
Project
Cost⁴ Cost
Incurred as
of Dec. 31,
2006⁴ Major Tenants and
Non-owned Anchors

Florida

Tarpon Springs Plaza 100 % Naples, FL Retail Q2 2007 92,546    276,346 0.0 % 89.2 % $28,000 $16,299 Target (non-owned), Staples, Cost Plus, AC Moore

Estero Town Commons 40 % Naples, FL Retail Q3 2006 25,600    206,600 0.0 % 93.9 % 20,000 18,584 Lowe’s Home Improvement

Bayport Commons 60 % Tampa, FL Retail Q3 2007 92,300    281,100 0.0 % 56.0 % 25,000 10,846 Target (non-owned), Michaels, PetSmart

Cobblestone Plaza 50 % Ft. Lauderdale Retail Q4 2007 147,800    157,800 0.0 % 68.0 % 45,000 16,061 Whole Foods, Staples

Indiana

Beacon Hill Shopping Center 50 % Crown Point, IN Retail Q4 2006 57,200    162,700 9.8 % 66.1 % 17,000 12,878 Strack & VanTil’s
(non-owned),
Walgreens (non-owned)

Bridgewater Marketplace I 100 % Indianapolis, IN Retail Q3 2006 26,000    50,820 0.0 % 32.2 % 11,000 10,194 Walgreens (non-owned)

54^th & College 100 % Indianapolis, IN Retail Q4 2007 0    20,100 0.0 % 100.0 % 2,500 2,177 Fresh Market

Illinois

Naperville Marketplace 100 % Chicago, IL Retail Q4 2006 99,600    169,600 33.1 % 36.6 % 16,500 11,961 Caputo’s Fresh Market
(non-owned), TJ Maxx

Oregon

Cornelius Gateway Build-to-Suit For Sale 80 % Portland, OR Retail Q2 2006 21,000    35,800 0.0 % 14.4 % 5,400 4,312 Walgreens (non-owned)

Washington

Sandifur Plaza Build-to-Suit for Sale 80%/95% Tri-Cities, WA Retail Q4 2006 27,400    27,400 0.0 % 86.1 % 6,400 3,921 Walgreens (build-to-suit for sale)

Gateway Shopping Center - Phase I & II 50 % Seattle, WA Retail Q1 2007 79,200    285,200 0.0 % 78.3 % 24,300 11,863 Kohl’s (non-owned), Winco (non-owned), Ross, PetSmart

Total 668,646    1,673,466 5.8 % 70.0 % $201,100 $119,096

____________________
1 Opening Date is defined as the first date a tenant is open for business or a ground lease payment is made. Stabilization (85% occupied) typically occurs within six to twelve months after opening date.
2 Projected Owned GLA represents gross leasable area the Company projects it will own. It excludes square footage that the Company projects will be attributable to non-owned outlot structures on land owned by the Company and expected to be ground leased to tenants. It also excludes non-owned anchor space.
3 Projected Total GLA includes Projected Owned GLA, projected square footage attributable to non-owned outlot structures on land that is owned by the Company, and non-owned anchor space that currently exists or is under construction.
4 Dollars in thousands. Reflects KRG and partner share of costs.
5 Excludes outlot land parcels owned by the Company and ground leased to tenants. Includes leases under negotiation for approximately 65,096 square feet for which the Company has signed non-binding letters of intent.
6 All joint ventures are consolidated in the Company’s financial statements.
7 The Company owns the following development properties through joint ventures: Cornelius Gateway (80%); Sandifur Plaza (Walgreens 80%; small shops 95%); Beacon Hill (preferred return, then 50%); Gateway Shopping Center (preferred return, then 50% until internal rate of return threshold is reached and then 25%); Estero Town Commons (preferred return, then 40%) and Bayport Commons. (preferred return, then 60%)
8 Includes tenants that have taken possession of their space or have begun paying rent.

p. 28

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

OTHER DEVELOPMENT ACTIVITY ¹

AS OF DECEMBER 31, 2006

VISIBLE SHADOW PIPELINE

Cost

KRG Estimated Total Incurred as

Ownership Estimated Total Estimated of Dec. 31,

Property MSA %⁴ Start Date GLA³ Cost³ 2006 Executed Leases & Potential Tenancy

Parkside Town Commons² Raleigh, NC 40% TBD 750,000 $ 118,000 $ 39,903 TBD

Delray Marketplace Delray Beach, FL 50% TBD 318,000 $ 90,000 29,914 Grocery, Theater, Jr. Boxes, Shops, Restaurants

Maple Valley Seattle, WA 100% TBD 156,000 36,000 6,859 Grocery, Hardware Store, Shops, Restaurants

1,224,000 $ 244,000 $ 76,676

REDEVELOPMENT ACTIVITY

Property MSA Project Description

Shops at Eagle Creek Naples, FL The Company is in the process of re-tenanting the 51,000 square foot anchor space formerly occupied by Winn-Dixie with two junior box users. In December 2006, the Company signed a lease with Staples for 35,852 square feet.

____________________
¹ Dollars in thousands. Reflects KRG and partner share of costs.
² In December 2006, Parkside Town Commons was acquired in a joint venture with Prudential Real Estate Investors. The Company’s interest in the joint venture is 40% as of December 31, 2006 and will be reduced to 20% upon the commencement of construction.
³ Total Estimated Cost and Estimated Total GLA based on preliminary siteplans.
⁴ The Company owns the following development property through a joint venture: Delray Marketplace (preferred return, then 50%).

p. 29

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

GEOGRAPHIC DIVERSIFICATION – OPERATING PORTFOLIO ¹

AS OF DECEMBER 31, 2006

Number of Percent of Total Percent of Annualized

Operating Owned Owned Number of Annualized Annualized Base Rent per

Properties GLA/NRA² GLA/NRA Leases Base Rent³ Base Rent Leased Sq. Ft.

Indiana 23 2,334,623 40.3% 233 $24,553,044 37.7%   $11.96

•   Retail – Mall 1 579,189 10.0% 31 $ 1,957,189 3.0%   $ 4.58

•   Retail 17 1,192,782 20.6% 183 $15,248,893 23.4%   $13.75

•   Commercial 5 562,652 9.7% 19 $ 7,346,962 11.3%   $14.24

Florida 12 1,319,928 22.8% 170 $13,585,589 20.8%   $10.72

Texas 8 1,144,311 19.8% 97 $13,954,233 21.4%   $12.27

Illinois 2 231,788 4.0% 36 $ 3,158,347 4.8%   $14.29

New Jersey 1 115,088 2.0% 16 $ 1,751,991 2.7%   $16.10

Georgia 3 300,114 5.1% 57 $ 3,936,549 6.0%   $14.33

Washington 3 102,159 1.8% 24 $ 1,709,269 2.6%   $17.82

Ohio 1 236,230 4.1% 7 $ 2,366,522 3.6%   $10.02

Oregon 1 9,845 0.1% 7 $     271,609 0.4% $27.59

Total 54 5,794,086 100.0% 647 $65,287,153 100.0% $12.08

____________________
¹ Excludes tenants at development properties that are Build-to-Suits for sale.
² Owned GLA/NRA represents gross leasable area or net leasable area owned by the Company. It does not include 22 parcels or outlots owned by the Company and ground leased to tenants, which contain 22 non-owned structures totaling approximately 314,619 square feet. It also excludes the square footage of Union Station Parking Garage.
³Annualized Base Rent excludes $2,879,413 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 2006 annualized minimum rent attributab le to Union Station Parking Garage as well as the leases on development properties.

p. 30

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

OPERATING RETAIL PROPERTIES – TABLE I

AS OF DECEMBER 31, 2006

Year Added Acquired, Percentage of Owned

Year to Operating Redeveloped, or Total Owned GLA

Property^1,2 State MSA Built/Renovated Portfolio Developed GLA² GLA² Leased³

International Speedway Square FL Daytona 1999 1999 Developed 233,901 220,901 98.2%

King's Lake Square FL Naples 1986 2003 Acquired 85,497 85,497 97.5%

Wal-Mart Plaza FL Gainesville 1970 2004 Acquired 177,826 177,826 100.0%

Waterford Lakes FL Orlando 1997 2004 Acquired 77,948 77,948 98.5%

Shops at Eagle Creek¹⁰ FL Naples 1998 2003 Acquired 75,944 75,944 57.4%

Eagle Creek Lowe’s FL Naples 2006 2006 Developed 165,000 0 *

Pine Ridge Crossing FL Naples 1993 2006 Acquired 258,882 105,515 100.0%

Riverchase FL Naples 1991 2006 Acquired 78,340 78,340 100.0%

Courthouse Shadows FL Naples 1987 2006 Acquired 134,867 134,867 100.0%

Circuit City Plaza FL Ft. Lauderdale 2004 2004 Developed 405,906 45,906 91.5%

Indian River Square FL Vero Beach 1997/2004 2005 Acquired 379,246 144,246 100.0%

Bolton Plaza⁴ FL Jacksonville 1986 2005 Acquired 172,938 172,938 95.0%

Centre at Panola GA Atlanta 2001 2004 Acquired 73,079 73,079 98.4%

Publix at Acworth GA Atlanta 1996 2004 Acquired 69,628 69,628 100.0%

Kedron Village GA Atlanta 2006 2006 Acquired 282,124 157,407 84.6%

Silver Glen Crossing IL Chicago 2002 2004 Acquired 138,265 132,716 96.9%

Fox Lake Crossing IL Chicago 2002 2005 Acquired 99,072 99,072 93.3%

Glendale Mall IN Indianapolis 1958/2000 1999 Redeveloped 724,026 579,189 73.8%

Cool Creek Commons IN Indianapolis 2005 2005 Developed 133,207 120,678 100.0%

Boulevard Crossing IN Kokomo 2004 2004 Developed 213,696 123,696 93.1%

Traders Point IN Indianapolis 2005 2005 Developed 348,835 279,558 94.9%

Traders Point II IN Indianapolis 2005 2005 Developed 46,600 46,600 57.1%

Hamilton Crossing IN Indianapolis 1999 2004 Acquired 87,424 82,424 100.0%

Fishers Station⁵ IN Indianapolis 1989 2004 Acquired 114,457 114,457 87.9%

Whitehall Pike IN Bloomington 1999 1999 Developed 128,997 128,997 100.0%

The Centre⁶ IN Indianapolis 1986 1986 Developed 80,689 80,689 95.5%

The Corner Shops IN Indianapolis 1984/2003 1984 Developed 42,545 42,545 100.0%

Stoney Creek Commons IN Indianapolis 2000 2000 Developed 189,527 49,330 100.0%

Greyhound Commons IN Indianapolis 2005 2005 Developed 153,187 0 *

Weston Park Phase I IN Indianapolis 2005 2005 Developed 12,200 0 *

____________________
(*) Property consists of ground leases only, no Owned GLA. As of December 31, 2006, the following were leased: Lowe’s at Eagle Creek – single ground lease property; Greyhound Commons – two of four outlots leased; and Weston Park Phase I – two of three outlots leased.

1 All properties are wholly owned, except as indicated. Unless otherwise noted, each property is owned in fee simple by the Company.
2 Owned GLA represents gross leasable area that is owned by the Company. Total GLA includes Owned GLA, square footage attributable to non-owned anchor space and non-owned structures on ground leases.
3 Percentage of Owned GLA Leased reflects Owned GLA/NRA leased as of December 31, 2006 except for Greyhound Commons, Weston Park Phase I (see * ) and Eagle Creek Lowe’s Home Improvement.
4 The Company acquired a 99.9% interest in this property through a joint venture with a third party that manages the property. At the current time, The Company receives 85% of the cash flow from the property, a percentage that may decrease under certain circumstances.
5 This property is divided into two parcels: a grocery store and small shops. The Company owns a 25% interest in the small shops in a joint venture and a 100% interest in the grocery store. The joint venture partner is entitled to an annual preferred payment of $96,000. All remaining cash flow is distributed to the Company.
6 The Company owns a 60% interest in this property through a joint venture with a third party that manages the property.
7 The Company does not own the land at this property. It has leased the land pursuant to two ground leases that expire in 2017. The Company has six five-year options to renew this lease.
8 The Company does not own the land at this property. It has leased the land pursuant to a ground lease that expires in 2027. The Company has five five-year renewal options.
9 The Company does not own the land at this property. It has leased the land pursuant to a ground lease that expires in 2012. The Company has six five-year renewal options and a right of first refusal to purchase the land.
10 In May 2006, the Company acquired and terminated the Winn-Dixie lease. In Q4 2006, the Company signed a lease with Staples for approximately half of this space. The remainder is being marketed to multiple potential retail tenants.

p. 31

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

OPERATING RETAIL PROPERTIES – TABLE I (CONTINUED)

AS OF DECEMBER 31, 2006

Year Added Acquired, Percentage of Owned

Year to Operating Redeveloped, or Total Owned GLA

Property^1,2 State MSA Built/Renovated Portfolio Developed GLA² GLA² Leased³

Geist Pavilion IN Indianapolis 2006 2006 Developed 64,114 64,114 83.7%

Zionsville Place IN Indianapolis 2006 2006 Developed 12,400 12,400 90.3%

Red Bank Commons IN Evansville 2005 2006 Developed 324,308 34,308 66.3%

Martinsville Shops IN Martinsville 2005 2005 Developed 10,986 10,986 100.0%

50 South Morton IN Indianapolis 1999 1999 Developed 2,000 2,000 100.0%

Ridge Plaza NJ Oak Ridge 2002 2003 Acquired 115,088 115,088 94.5%

Eastgate Pavilion OH Cincinnati 1995 2004 Acquired 236,230 236,230 100.0%

Shops at Otty⁷ OR Portland 2004 2004 Developed 154,845 9,845 100.0%

Plaza at Cedar Hill TX Dallas 2000 2004 Acquired 299,847 299,847 100.0%

Sunland Towne Centre TX El Paso 1996 2004 Acquired 312,450 307,474 99.5%

Galleria Plaza⁸ TX Dallas 2002 2004 Acquired 44,306 44,306 100.0%

Cedar Hill Village TX Dallas 2002 2004 Acquired 139,092 44,262 94.2%

Preston Commons TX Dallas 2002 2002 Developed 142,564 27,564 90.0%

Burlington Coat Factory⁹ TX San Antonio 1992/2000 2000 Redeveloped 107,400 107,400 100.0%

Plaza Volente TX Austin 2004 2005 Acquired 160,333 156,333 100.0%

Market Street Village TX Hurst 1970/2004 2005 Acquired 164,125 157,125 100.0%

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 73,099 73,099 91.5%

TOTAL 7,576,100 5,231,434 93.4%

p. 32

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

OPERATING RETAIL PROPERTIES – TABLE II

AS OF DECEMBER 31, 2006

Annualized Annualized Percentage of Base Rent

Base Rent Ground Lease Annualized Total Annualized Total Per Leased

Property State MSA Revenue Revenue Retail Revenue¹ Retail Revenue Owned GLA² Major Tenants and Non-Owned Anchors³

International Speedway Square⁴ FL Daytona $2,423,671 $232,900 $2,656,571 4.4 % $11.18 Stein Mart, Bed Bath & Beyond, Circuit City

King's Lake Square FL Naples $1,107,001 $0 $1,107,001 1.8 % $13.28 Publix, Walgreens

Wal-Mart Plaza FL Gainesville $941,835 $0 $941,835 1.6 % $5.30 Wal-Mart, Books-A-Million, Save A Lot

Waterford Lakes FL Orlando $896,363 $0 $896,363 1.5 % $11.68 Winn-Dixie⁵

Shops at Eagle Creek FL Naples $748,906 $0 $748,906 1.2 % $17.17 Staples

Eagle Creek Lowe’s FL Naples $0 $800,000 $800,000 1.3 % - Lowe’s Home Improvement

Pine Ridge Crossing FL Naples $1,568,159 $0 $1,568,159 2.6 % $14.86 Publix, Bealls (non-owned), Target (non-owned)

Riverchase FL Naples $1,070,812 $0 $1,070,812 1.8 % $13.67 Publix

Courthouse Shadows FL Naples $1,465,818 $0 $1,465,818 2.4 % $10.87 Albertson’s, Office Max

Circuit City Plaza FL Ft. Lauderdale $817,202 $0 $817,202 1.3 % $19.46 Circuit City, Wal-Mart (non-owned), Lowe’s Home Improvement (non-owned)

Indian River Square FL Vero Beach $1,453,078 $0 $1,453,078 2.4 % $10.07 Office Depot, Bealls, Ragshop, Lowe’s Home Improvement (non-owned), Target (non-owned)

Bolton Plaza⁴ FL Jacksonville $1,092,745 $0 $1,092,745 1.8 % $6.65 Wal-Mart

Centre at Panola GA Atlanta $818,294 $0 $818,294 1.4 % $11.38 Publix

Publix at Acworth GA Atlanta $800,946 $0 $800,946 1.3 % $11.50 Publix, CVS

Kedron Village GA Atlanta $2,317,308 $0 $2,317,308 3.8 % $17.41 Target (non-owned), Bed Bath & Beyond, Ross, Petco

Silver Glen Crossing IL Chicago $1,873,014 $85,000 $1,958,014 3.2 % $14.57 Dominick’s, MC Sports

Fox Lake Crossing IL Chicago $1,285,333 $0 $1,285,333 2.1 % $13.90 Dominick’s

Glendale Mall IN Indianapolis $1,957,189 $154,004 $2,111,193 3.5 % $4.58 L.S. Ayres, Kerasotes Theatre, Lowe’s Home Improvement (non-owned)

Cool Creek Commons IN Indianapolis $1,917,109 $155,500 $2,072,609 3.4 % $15.89 Fresh Market, Stein Mart

Boulevard Crossing IN Kokomo $1,552,329 $0 $1,552,329 2.6 % $13.48 TJ Maxx, PETCO, Shoe Carnival, Kohl’s (non-owned)

Traders Point IN Indianapolis $3,699,922 $545,000 $4,244,922 7.0 % $13.95 Dick’s Sporting Goods, Bed Bath & Beyond, Michaels, Marsh Supermarkets, Books-A-Million, Old Navy, PetSmart

Traders Point II IN Indianapolis $695,239 $0 $695,239 1.1 % $26.13

Hamilton Crossing IN Indianapolis $1,403,954 $71,500 $1,475,454 2.4 % $17.03 Office Depot

Fishers Station IN Indianapolis $1,252,807 $0 $1,252,807 2.1 % $12.46 Marsh Supermarket

Whitehall Pike IN Bloomington $1,014,000 $0 $1,014,000 1.7 % $7.86 Lowe’s Home Improvement

The Centre⁴ IN Indianapolis $996,551 $0 $996,551 1.6 % $12.94 Osco

The Corner Shops IN Indianapolis $533,373 $0 $533,373 0.9 % $12.54 Hancock Fabrics

Stoney Creek Commons IN Indianapolis $464,755 $0 $464,755 0.8 % $9.42 Lowe’s Home Improvement (non-owned), HH Gregg, Office Depot

Greyhound Commons IN Indianapolis $0 $202,500 $202,500 0.3 % - Lowe’s Home Improvement (non-owned)

Weston Park Phase I IN Indianapolis $0 $190,000 $190,000 0.3 % -

____________________
¹ Annualized Base Rent represents the contractual rent for December 2006 for each applicable property, multiplied by 12. This table does not include Annualized Base Rent from development property tenants open for business as of December 31, 2006.
² Owned GLA represents gross leasable area that is owned by the Company. Total GLA includes Owned GLA, square footage attributable to non-owned anchor space and non-owned structures on ground leases.
³ Represents the three largest tenants that occupy at least 10,000 square feet of GLA at the property, including non-owned anchors.
⁴ A third party manages this property.
⁵ In February 2005, Winn-Dixie Stores, Inc. filed a petition for Chapter 11 bankruptcy to reorganize its business operations. As of December 31, 2006, Winn-Dixie had not announced plans to close the Waterford Lakes store, nor had it rejected the lease. In a public announcement, Winn-Dixie included the store at Waterford Lakes on its list of stores it intended to retain as of that date.

p. 33

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


OPERATING RETAIL PROPERTIES – TABLE II	(CONTINUED)
AS OF DECEMBER 31, 2006

			Annualized Base	Annualized	Annualized Total	Percentage of		Base Rent
Property	State	MSA	Rent	Ground Lease	Retail Revenue ¹	Annualized Total		Per Leased Owned	Major Tenants and Non-Owned Anchors³
Geist Pavilion	IN	Indianapolis	$868,865	$0	$868,865	1.4	%	$16.20	Ace Hardware, Partytree
Zionsville Place	IN	Indianapolis	$231,204	$0	$231,204	0.4	%	$20.64
Red Bank Commons	IN	Evansville	$335,784	$0	$335,784	0.6	%	$14.76	Wal-Mart (non-owned) Home Depot (non-owned)
Martinsville Shops	IN	Martinsville	$151,000	$0	$151,000	0.3	%	$13.74
50 South Morton	IN	Indianapolis	$132,000	$0	$132,000	0.2	%	$66.00
Ridge Plaza	NJ	Oak Ridge	$1,751,991	$0	$1,751,991	2.9	%	$16.10	A&P, CVS
Eastgate Pavilion	OH	Cincinnati	$2,366,522	$0	$2,366,522	3.9	%	$10.02	Dick’s Sporting Goods, Value City Furniture, Best Buy
Shops at Otty	OR	Portland	$271,609	$122,500	$394,109	0.7	%	$27.59	Wal-Mart (non-owned)
Plaza at Cedar Hill	TX	Dallas	$3,608,377	$0	$3,608,377	5.8	%	$12.03	Hobby Lobby, Linens ‘N Things, Marshall’s
Sunland Towne Centre	TX	El Paso	$3,011,918	$104,809	$3,116,727	5.0	%	$9.84	Kmart, Circuit City, Roomstore
Galleria Plaza	TX	Dallas	$1,083,224	$0	$1,083,224	1.8	%	$24.45	Shoe Pavilion
Cedar Hill Village	TX	Dallas	$673,085	$0	$673,085	1.1	%	$16.14	24 Hour Fitness, JCPenney (non-owned)
Preston Commons	TX	Dallas	$587,502	$0	$587,502	1.0	%	$23.69	Lowe’s Home Improvement (non-owned)
Burlington Coat Factory	TX	San Antonio	$510,150	$0	$510,150	0.8	%	$4.75	Burlington Coat Factory
Plaza Volente	TX	Austin	$2,453,119	$100,000	$2,553,119	4.2	%	$15.69	H-E-B Grocery
Market Street Village	TX	Hurst	$2,026,858	$115,700	$2,142,558	3.5	%	$12.90	Ross, Office Depot, JoAnn’s, Circuit City, Hancock Fabrics
50th & 12th	WA	Seattle	$475,000	$0	$475,000	0.8	%	$32.76	Walgreens
176th & Meridian	WA	Seattle	$433,000	$0	$433,000	0.7	%	$29.74	Walgreens
Four Corner Square	WA	Seattle	$801,269	$0	$801,269	1.3	%	$11.98	Johnson Hardware Store
TOTAL			$57,940,190	$2,879,413	$60,819,603	100.0	%	$11.85	100.0%

p. 34

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

OPERATING COMMERCIAL PROPERTIES

AS OF DECEMBER 31, 2006

   Percentage of

Acquired, Percentage of Annualized

Year Built/ Redeveloped, Owned NRA Annualized Commercial Base Rent Per

Property MSA Renovated or Developed Owned NRA   Leased Base Rent¹ Base Rent Leased Sq. Ft. Major Tenants

Indiana

Thirty South^4,5 Indianapolis 1905/2002 Redeveloped 298,346    84.4 % $4,373,673 59.5 % $17.37 Eli Lilly, City
Securities, Kite Realty Group

PEN Products Indianapolis 2003 Developed 85,875 100.0 % 813,236 11.1 % 9.47 Indiana Department
of Administration

Spring Mill Medical² Indianapolis 1998/2002 Redeveloped 63,431 100.0 % 1,466,603 20.0 % 23.12 University Medical
Diagnostic Associates;

Indiana University
Healthcare Associates

Union Station Parking Garage³ Indianapolis 1986 Acquired N/A N/A N/A N/A N/A Denison Parking

Indiana State Motor Pool Indianapolis 2004 Developed 115,000 100.0 % 693,450 9.4 % 6.03 Indiana Dept.
of Administration

Total 562,652 91.7 % $7,346,962 100.0 % $14.24

____________________
¹ Annualized Base Rent represents the monthly contractual rent for December 2006 for each applicable property, multiplied by 12.
² The Company owns a 50% interest in this property through a joint venture with one of the tenants at this property.
³ Annualized Base Rent for 2006 is approximately $500,000.
⁴ Annualized Base Rent includes $728,527 from the Company and subsidiaries as of December 31, 2006.
⁵ On December 1, 2006, the Company entered into an agreement to terminate its lease with Eli Lilly & Company effective December 31, 2006 as to 29,140 square feet and effective October 1, 2007 as to 70,402 square feet.

p. 35

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

RETAIL OPERATING PORTFOLIO – TENANT BREAKDOWN ¹

AS OF DECEMBER 31, 2006

Owned Gross
Leasable Area Occupancy Annualized
Base Rent¹ Annualized Base Rent
per Occupied Sq. Ft.

Ground

Property State Anchors Shops Total Anchors Shops Total Anchors Shops Leases Total Anchors Shops Total

International Speedway Square FL 200,401 20,500 220,901 100.0% 80.4% 98.2% $2,118,321 $305,350 $232,900 $2,656,571 $10.57 $18.53 $11.18

King's Lake Square FL 49,805 35,692 85,497 100.0% 94.0% 97.5% 361,793 745,208 0 1,107,001 7.26 22.20 13.28

Wal-Mart Plaza FL 138,323 39,503 177,826 100.0% 100.0% 100.0% 538,533 403,302 0 941,835 3.89 10.21 5.30

Waterford Lakes FL 51,703 26,245 77,948 100.0% 95.4% 98.5% 408,452 487,911 0 896,363 7.90 19.48 11.68

Shops at Eagle Creek FL 51,703 24,241 75,944 49.3% 74.9% 57.4% 356,678 392,228 0 748,906 14.00 21.62 17.17

Eagle Creek Lowe’s FL 0 0 0 0 0 0 0 0 800,000 800,000 0 0 0

Pine Ridge Crossing FL 65,999 39,516 105,515 100.0% 100.0% 100.0% 611,992 956,167 0 1,568,159 9.27 24.20 14.86

Riverchase FL 48,890 29,450 78,340 100.0% 100.0% 100.0% 386,231 684,581 0 1,070,812 7.90 23.25 13.67

Courthouse Shadows FL 102,328 32,539 134,867 100.0% 100.0% 100.0% 943,033 522,785 0 1,465,818 9.22 16.07 10.87

Circuit City Plaza FL 33,014 12,892 45,906 100.0% 69.6% 91.5% 594,252 222,950 0 817,202 18.00 24.84 19.46

Indian River Square FL 116,342 27,904 144,246 100.0% 100.0% 100.0% 965,585 487,493 0 1,453,078 8.30 17.47 10.07

Bolton Plaza FL 131,488 41,450 172,938 100.0% 79.1% 95.0% 621,444 471,301 0 1,092,745 4.73 14.37 6.65

Centre at Panola GA 51,674 21,405 73,079 100.0% 94.4% 98.4% 413,392 404,902 0 818,294 8.00 20.04 11.38

Publix at Acworth GA 37,888 31,740 69,628 100.0% 100.0% 100.0% 337,203 463,743 0 800,946 8.90 14.61 11.50

Kedron Village GA 68,845 88,562 157,407 100.0% 72.6% 84.6% 849,648 1,467,660 0 2,317,308 12.34 22.83 17.41

Silver Glen Crossing IL 78,675 54,041 132,716 100.0% 92.3% 96.9% 812,916 1,060,098 85,000 1,958,014 10.33 21.26 14.57

Fox Lake Crossing IL 65,977 33,095 99,072 100.0% 80.1% 93.3% 742,241 543,092 0 1,285,333 11.25 20.50 13.90

Glendale Mall IN 437,702 141,487 579,189 83.2% 44.8% 73.8% 1,250,305 706,884 154,004 2,111,193 3.43 11.16 4.58

Cool Creek Commons IN 63,600 57,078 120,678 100.0% 100.0% 100.0% 601,700 1,315,409 155,500 2,072,609 9.46 23.05 15.89

Boulevard Crossing IN 73,440 50,256 123,696 100.0% 83.0% 93.1% 832,960 719,369 0 1,552,329 11.34 17.24 13.48

Traders Point IN 238,721 40,837 279,558 100.0% 64.8% 94.9% 3,071,419 628,504 545,000 4,244,922 12.87 23.74 13.95

Traders Point II IN 0 46,600 46,600 0 57.1% 57.1% 0 695,239 0 695,239 26.13 26.13

Hamilton Crossing IN 30,722 51,702 82,424 100.0% 100.0% 100.0% 345,623 1,058,331 71,500 1,475,454 11.25 20.47 17.03

Fishers Station IN 57,000 57,457 114,457 100.0% 75.8% 87.9% 575,000 677,807 0 1,252,807 10.09 15.56 12.46

Whitehall Pike IN 128,997 0 128,997 100.0% 0 100.0% 1,014,000 0 0 1,014,000 7.86 0 7.86

The Centre IN 18,720 61,969 80,689 100.0% 94.1% 95.5% 170,352 826,199 0 996,551 9.10 14.17 12.94

The Corner Shops IN 12,200 30,345 42,545 100.0% 100.0% 100.0% 73,200 460,173 0 533,373 6.00 15.16 12.54

Stoney Creek Commons IN 49,330 0 49,330 100.0% 0 100.0% 464,755 0 0 464,755 9.42 0 9.42

Greyhound Commons IN 0 0 0 0 0 0 0 0 202,500 202,500 0 0 0

Weston Park Phase I IN 0 0 0 0 0 0 0 0 190,000 190,000 0 0 0

Geist Pavilion IN 27,955 36,159 64,114 100.0% 71.0% 83.7% 372,482 496,383 0 868,865 13.32 19.33 16.20

Zionsville Place IN 0 12,400 12,400 0 90.3% 90.3% 0 231,204 0 231,204 0 20.64 20.64

Red Bank Commons IN 0 34,308 34,308 0 66.3% 66.3% 0 335,784 0 335,784 0 14.76 14.76

Martinsville Shops IN 0 10,986 10,986 0 100.0% 100.0% 0 151,000 0 151,000 0 13.74 13.74

50 South Morton IN 0 2,000 2,000 0 100.0% 100.0% 0 132,000 0 132,000 0 66.00 66.00

Ridge Plaza NJ 69,612 45,476 115,088 100.0% 86.2% 94.5% 986,556 765,435 0 1,751,991 14.17 19.54 16.10

Eastgate Pavilion OH 231,730 4,500 236,230 100.0% 0 100.0% 2,233,772 132,750 0 2,366,522 9.64 0 10.02

Shops at Otty OR 0 9,845 9,845 100.0% 100.0% 0 271,609 122,500 394,109 0 27.59 27.59

Plaza at Cedar Hill TX 227,106 72,741 299,847 100.0% 100.0% 100.0% 2,183,969 1,424,408 0 3,608,377 9.62 19.58 12.03

Sunland Towne Centre TX 277,131 30,343 307,474 100.0% 95.1% 99.5% 2,527,022 484,896 104,809 3,116,727 9.12 16.81 9.84

Galleria Plaza TX 31,396 12,910 44,306 100.0% 100.0% 100.0% 722,108 361,116 0 1,083,224 0 27.97 24.45

Cedar Hill Village TX 32,231 12,031 44,262 100.0% 78.8% 94.2% 483,465 189,620 0 673,085 0 20.00 16.14

Preston Commons TX 0 27,564 27,564 90.0% 90.0% 0 587,502 0 587,502 0 23.69 23.69

Burlington Coat Factory TX 107,400 0 107,400 100.0% 0 100.0% 510,150 0 0 510,150 4.75 0 4.75

Plaza Volente TX 105,000 51,333 156,333 100.0% 100.0% 100.0% 1,155,000 1,298,119 100,000 2,553,119 11.00 25.29 15.69

Market Street Village TX 137,246 19,879 157,125 100.0% 100.0% 100.0% 1,570,081 456,777 115,700 2,142,558 11.44 22.98 12.90

50th & 12th WA 14,500 0 14,500 100.0% 0 100.0% 475,000 0 0 475,000 32.76 0 32.76

176th & Meridian WA 14,560 0 14,560 100.0% 0 100.0% 433,000 0 0 433,000 29.74 0 29.74

Four Corner Square WA 20,512 52,587 73,099 100.0% 88.2% 91.5% 126,672 674,597 0 801,269 6.18 14.55 11.98

Total 3,699,866 1,531,568 5,231,434 97.3% 84.1% 93.4% $33,240,305 $24,699,886 $2,879,413 $60,819,604 $9.23 $19.17 $11.85

____________________
¹ This table does not include annualized base rent from development property tenants open for business as of December 31, 2006.

p. 36 Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06


ACQUISITION OF PROPERTIES

Name of Operating		Date	Purchase	Assumed			Major Tenants
Property	MSA	Acquired	Price	Debt	Total GLA	Owned GLA	and Non-Owned Anchors
Kedron Village	Atlanta	4/3/06	$36,900,000	none	282,125	157,408	Target (non-owned), Bed Bath &
							Beyond, Ross, PETCO
Pine Ridge	Naples	7/6/06	$22,500,000	none	258,882	105,515	Publix, Target (non-owned), Bealls
Crossing							(non-owned)
Riverchase	Naples	7/6/06	$15,500,000	none	78,340	78,340	Publix
Courthouse Shadows	Naples	7/6/06	$19,750,000	none	134,867	134,867	Albertson's, OfficeMax
			$94,650,000		754,214	476,130

p. 37

Kite Realty Group Supplemental Financial and Operating Statistics – 12/31/06

Commercial Portfolio	12/31/06			9/30/06			6/30/06			3/31/06			12/31/05
Company Owned Net Rentable Area (NRA)¹		562,652			562,652			562,652			562,652			562,652
NRA under Development		-			-			-			-			-
Number of Operating Commercial Properties		5			5			5			5			5
Number of Commercial Properties under Development		-			-			-			-			-
Percentage Leased – Operating Commercial Properties		91.7	%		96.9	%		96.9	%		97.7	%		97.3	%
Percentage Leased – Commercial Properties under Development					-			-			-			-
Annualized Base Rent – Commercial Properties^2,3	$	7,346,962		$	7,894,595		$	7,874,683		$	7,959,366		$	7,909,489

2006-2007 Deliveries	KRG Ownership %⁷		MSA	Type of Property	Actual/ Projected Opening Date¹	Projected Owned GLA²	Projected Total GLA³	Percent of Owned GLA Occupied⁸		Percent of Owned GLA Pre-Leased/ Committed⁵		Total Estimated Project Cost⁴	Cost Incurred as of Dec. 31, 2006⁴	Major Tenants and Non-owned Anchors
*Florida*
Tarpon Springs Plaza	100	%	Naples, FL	Retail	Q2 2007	92,546	276,346	0.0	%	89.2	%	$28,000	$16,299	Target (non-owned), Staples, Cost Plus, AC Moore
Estero Town Commons	40	%	Naples, FL	Retail	Q3 2006	25,600	206,600	0.0	%	93.9	%	20,000	18,584	Lowe’s Home Improvement
Bayport Commons	60	%	Tampa, FL	Retail	Q3 2007	92,300	281,100	0.0	%	56.0	%	25,000	10,846	Target (non-owned), Michaels, PetSmart
Cobblestone Plaza	50	%	Ft. Lauderdale	Retail	Q4 2007	147,800	157,800	0.0	%	68.0	%	45,000	16,061	Whole Foods, Staples
*Indiana*
Beacon Hill Shopping Center	50	%	Crown Point, IN	Retail	Q4 2006	57,200	162,700	9.8	%	66.1	%	17,000	12,878	Strack & VanTil’s (non-owned), Walgreens (non-owned)
Bridgewater Marketplace I	100	%	Indianapolis, IN	Retail	Q3 2006	26,000	50,820	0.0	%	32.2	%	11,000	10,194	Walgreens (non-owned)
54^th & College	100	%	Indianapolis, IN	Retail	Q4 2007	0	20,100	0.0	%	100.0	%	2,500	2,177	Fresh Market
*Illinois*
Naperville Marketplace	100	%	Chicago, IL	Retail	Q4 2006	99,600	169,600	33.1	%	36.6	%	16,500	11,961	Caputo’s Fresh Market (non-owned), TJ Maxx
*Oregon*
Cornelius Gateway Build-to-Suit For Sale	80	%	Portland, OR	Retail	Q2 2006	21,000	35,800	0.0	%	14.4	%	5,400	4,312	Walgreens (non-owned)
*Washington*
Sandifur Plaza Build-to-Suit for Sale	80%/95%		Tri-Cities, WA	Retail	Q4 2006	27,400	27,400	0.0	%	86.1	%	6,400	3,921	Walgreens (build-to-suit for sale)
Gateway Shopping Center - Phase I & II	50	%	Seattle, WA	Retail	Q1 2007	79,200	285,200	0.0	%	78.3	%	24,300	11,863	Kohl’s (non-owned), Winco (non-owned), Ross, PetSmart
Total						668,646	1,673,466	5.8	%	70.0	%	$201,100	$119,096

	Number of		Percent of	Total		Percent of	Annualized
	Operating	Owned	Owned	Number of	Annualized	Annualized	Base Rent per
	Properties	GLA/NRA²	GLA/NRA	Leases	Base Rent³	Base Rent	Leased Sq. Ft.
Indiana	23	2,334,623	40.3%	233	$24,553,044	37.7%	$11.96
• Retail – Mall	1	579,189	10.0%	31	$ 1,957,189	3.0%	$ 4.58
• Retail	17	1,192,782	20.6%	183	$15,248,893	23.4%	$13.75
• Commercial	5	562,652	9.7%	19	$ 7,346,962	11.3%	$14.24
Florida	12	1,319,928	22.8%	170	$13,585,589	20.8%	$10.72
Texas	8	1,144,311	19.8%	97	$13,954,233	21.4%	$12.27
Illinois	2	231,788	4.0%	36	$ 3,158,347	4.8%	$14.29
New Jersey	1	115,088	2.0%	16	$ 1,751,991	2.7%	$16.10
Georgia	3	300,114	5.1%	57	$ 3,936,549	6.0%	$14.33
Washington	3	102,159	1.8%	24	$ 1,709,269	2.6%	$17.82
Ohio	1	236,230	4.1%	7	$ 2,366,522	3.6%	$10.02
Oregon	1	9,845	0.1%	7	$ 271,609	0.4%	$27.59
Total	54	5,794,086	100.0%	647	$65,287,153	100.0%	$12.08

OPERATING RETAIL PROPERTIES – TABLE I
AS OF DECEMBER 31, 2006

				Year Added	Acquired,			Percentage of Owned
			Year	to Operating	Redeveloped, or	Total	Owned	GLA
Property^1,2	State	MSA	Built/Renovated	Portfolio	Developed	GLA²	GLA²	Leased³
International Speedway Square	FL	Daytona	1999	1999	Developed	233,901	220,901	98.2%
King's Lake Square	FL	Naples	1986	2003	Acquired	85,497	85,497	97.5%
Wal-Mart Plaza	FL	Gainesville	1970	2004	Acquired	177,826	177,826	100.0%
Waterford Lakes	FL	Orlando	1997	2004	Acquired	77,948	77,948	98.5%
Shops at Eagle Creek¹⁰	FL	Naples	1998	2003	Acquired	75,944	75,944	57.4%
Eagle Creek Lowe’s	FL	Naples	2006	2006	Developed	165,000	0	*
Pine Ridge Crossing	FL	Naples	1993	2006	Acquired	258,882	105,515	100.0%
Riverchase	FL	Naples	1991	2006	Acquired	78,340	78,340	100.0%
Courthouse Shadows	FL	Naples	1987	2006	Acquired	134,867	134,867	100.0%
Circuit City Plaza	FL	Ft. Lauderdale	2004	2004	Developed	405,906	45,906	91.5%
Indian River Square	FL	Vero Beach	1997/2004	2005	Acquired	379,246	144,246	100.0%
Bolton Plaza⁴	FL	Jacksonville	1986	2005	Acquired	172,938	172,938	95.0%
Centre at Panola	GA	Atlanta	2001	2004	Acquired	73,079	73,079	98.4%
Publix at Acworth	GA	Atlanta	1996	2004	Acquired	69,628	69,628	100.0%
Kedron Village	GA	Atlanta	2006	2006	Acquired	282,124	157,407	84.6%
Silver Glen Crossing	IL	Chicago	2002	2004	Acquired	138,265	132,716	96.9%
Fox Lake Crossing	IL	Chicago	2002	2005	Acquired	99,072	99,072	93.3%
Glendale Mall	IN	Indianapolis	1958/2000	1999	Redeveloped	724,026	579,189	73.8%
Cool Creek Commons	IN	Indianapolis	2005	2005	Developed	133,207	120,678	100.0%
Boulevard Crossing	IN	Kokomo	2004	2004	Developed	213,696	123,696	93.1%
Traders Point	IN	Indianapolis	2005	2005	Developed	348,835	279,558	94.9%
Traders Point II	IN	Indianapolis	2005	2005	Developed	46,600	46,600	57.1%
Hamilton Crossing	IN	Indianapolis	1999	2004	Acquired	87,424	82,424	100.0%
Fishers Station⁵	IN	Indianapolis	1989	2004	Acquired	114,457	114,457	87.9%
Whitehall Pike	IN	Bloomington	1999	1999	Developed	128,997	128,997	100.0%
The Centre⁶	IN	Indianapolis	1986	1986	Developed	80,689	80,689	95.5%
The Corner Shops	IN	Indianapolis	1984/2003	1984	Developed	42,545	42,545	100.0%
Stoney Creek Commons	IN	Indianapolis	2000	2000	Developed	189,527	49,330	100.0%
Greyhound Commons	IN	Indianapolis	2005	2005	Developed	153,187	0	*
Weston Park Phase I	IN	Indianapolis	2005	2005	Developed	12,200	0	*

	Owned Gross Leasable Area				Occupancy			Annualized Base Rent¹				Annualized Base Rent per Occupied Sq. Ft.
										Ground
Property	State	Anchors	Shops	Total	Anchors	Shops	Total	Anchors	Shops	Leases	Total	Anchors	Shops	Total
International Speedway Square	FL	200,401	20,500	220,901	100.0%	80.4%	98.2%	$2,118,321	$305,350	$232,900	$2,656,571	$10.57	$18.53	$11.18
King's Lake Square	FL	49,805	35,692	85,497	100.0%	94.0%	97.5%	361,793	745,208	0	1,107,001	7.26	22.20	13.28
Wal-Mart Plaza	FL	138,323	39,503	177,826	100.0%	100.0%	100.0%	538,533	403,302	0	941,835	3.89	10.21	5.30
Waterford Lakes	FL	51,703	26,245	77,948	100.0%	95.4%	98.5%	408,452	487,911	0	896,363	7.90	19.48	11.68
Shops at Eagle Creek	FL	51,703	24,241	75,944	49.3%	74.9%	57.4%	356,678	392,228	0	748,906	14.00	21.62	17.17
Eagle Creek Lowe’s	FL	0	0	0	0	0	0	0	0	800,000	800,000	0	0	0
Pine Ridge Crossing	FL	65,999	39,516	105,515	100.0%	100.0%	100.0%	611,992	956,167	0	1,568,159	9.27	24.20	14.86
Riverchase	FL	48,890	29,450	78,340	100.0%	100.0%	100.0%	386,231	684,581	0	1,070,812	7.90	23.25	13.67
Courthouse Shadows	FL	102,328	32,539	134,867	100.0%	100.0%	100.0%	943,033	522,785	0	1,465,818	9.22	16.07	10.87
Circuit City Plaza	FL	33,014	12,892	45,906	100.0%	69.6%	91.5%	594,252	222,950	0	817,202	18.00	24.84	19.46
Indian River Square	FL	116,342	27,904	144,246	100.0%	100.0%	100.0%	965,585	487,493	0	1,453,078	8.30	17.47	10.07
Bolton Plaza	FL	131,488	41,450	172,938	100.0%	79.1%	95.0%	621,444	471,301	0	1,092,745	4.73	14.37	6.65
Centre at Panola	GA	51,674	21,405	73,079	100.0%	94.4%	98.4%	413,392	404,902	0	818,294	8.00	20.04	11.38
Publix at Acworth	GA	37,888	31,740	69,628	100.0%	100.0%	100.0%	337,203	463,743	0	800,946	8.90	14.61	11.50
Kedron Village	GA	68,845	88,562	157,407	100.0%	72.6%	84.6%	849,648	1,467,660	0	2,317,308	12.34	22.83	17.41
Silver Glen Crossing	IL	78,675	54,041	132,716	100.0%	92.3%	96.9%	812,916	1,060,098	85,000	1,958,014	10.33	21.26	14.57
Fox Lake Crossing	IL	65,977	33,095	99,072	100.0%	80.1%	93.3%	742,241	543,092	0	1,285,333	11.25	20.50	13.90
Glendale Mall	IN	437,702	141,487	579,189	83.2%	44.8%	73.8%	1,250,305	706,884	154,004	2,111,193	3.43	11.16	4.58
Cool Creek Commons	IN	63,600	57,078	120,678	100.0%	100.0%	100.0%	601,700	1,315,409	155,500	2,072,609	9.46	23.05	15.89
Boulevard Crossing	IN	73,440	50,256	123,696	100.0%	83.0%	93.1%	832,960	719,369	0	1,552,329	11.34	17.24	13.48
Traders Point	IN	238,721	40,837	279,558	100.0%	64.8%	94.9%	3,071,419	628,504	545,000	4,244,922	12.87	23.74	13.95
Traders Point II	IN	0	46,600	46,600	0	57.1%	57.1%	0	695,239	0	695,239		26.13	26.13
Hamilton Crossing	IN	30,722	51,702	82,424	100.0%	100.0%	100.0%	345,623	1,058,331	71,500	1,475,454	11.25	20.47	17.03
Fishers Station	IN	57,000	57,457	114,457	100.0%	75.8%	87.9%	575,000	677,807	0	1,252,807	10.09	15.56	12.46
Whitehall Pike	IN	128,997	0	128,997	100.0%	0	100.0%	1,014,000	0	0	1,014,000	7.86	0	7.86
The Centre	IN	18,720	61,969	80,689	100.0%	94.1%	95.5%	170,352	826,199	0	996,551	9.10	14.17	12.94
The Corner Shops	IN	12,200	30,345	42,545	100.0%	100.0%	100.0%	73,200	460,173	0	533,373	6.00	15.16	12.54
Stoney Creek Commons	IN	49,330	0	49,330	100.0%	0	100.0%	464,755	0	0	464,755	9.42	0	9.42
Greyhound Commons	IN	0	0	0	0	0	0	0	0	202,500	202,500	0	0	0
Weston Park Phase I	IN	0	0	0	0	0	0	0	0	190,000	190,000	0	0	0
Geist Pavilion	IN	27,955	36,159	64,114	100.0%	71.0%	83.7%	372,482	496,383	0	868,865	13.32	19.33	16.20
Zionsville Place	IN	0	12,400	12,400	0	90.3%	90.3%	0	231,204	0	231,204	0	20.64	20.64
Red Bank Commons	IN	0	34,308	34,308	0	66.3%	66.3%	0	335,784	0	335,784	0	14.76	14.76
Martinsville Shops	IN	0	10,986	10,986	0	100.0%	100.0%	0	151,000	0	151,000	0	13.74	13.74
50 South Morton	IN	0	2,000	2,000	0	100.0%	100.0%	0	132,000	0	132,000	0	66.00	66.00
Ridge Plaza	NJ	69,612	45,476	115,088	100.0%	86.2%	94.5%	986,556	765,435	0	1,751,991	14.17	19.54	16.10
Eastgate Pavilion	OH	231,730	4,500	236,230	100.0%	0	100.0%	2,233,772	132,750	0	2,366,522	9.64	0	10.02
Shops at Otty	OR	0	9,845	9,845		100.0%	100.0%	0	271,609	122,500	394,109	0	27.59	27.59
Plaza at Cedar Hill	TX	227,106	72,741	299,847	100.0%	100.0%	100.0%	2,183,969	1,424,408	0	3,608,377	9.62	19.58	12.03
Sunland Towne Centre	TX	277,131	30,343	307,474	100.0%	95.1%	99.5%	2,527,022	484,896	104,809	3,116,727	9.12	16.81	9.84
Galleria Plaza	TX	31,396	12,910	44,306	100.0%	100.0%	100.0%	722,108	361,116	0	1,083,224	0	27.97	24.45
Cedar Hill Village	TX	32,231	12,031	44,262	100.0%	78.8%	94.2%	483,465	189,620	0	673,085	0	20.00	16.14
Preston Commons	TX	0	27,564	27,564		90.0%	90.0%	0	587,502	0	587,502	0	23.69	23.69
Burlington Coat Factory	TX	107,400	0	107,400	100.0%	0	100.0%	510,150	0	0	510,150	4.75	0	4.75
Plaza Volente	TX	105,000	51,333	156,333	100.0%	100.0%	100.0%	1,155,000	1,298,119	100,000	2,553,119	11.00	25.29	15.69
Market Street Village	TX	137,246	19,879	157,125	100.0%	100.0%	100.0%	1,570,081	456,777	115,700	2,142,558	11.44	22.98	12.90
50th & 12th	WA	14,500	0	14,500	100.0%	0	100.0%	475,000	0	0	475,000	32.76	0	32.76
176th & Meridian	WA	14,560	0	14,560	100.0%	0	100.0%	433,000	0	0	433,000	29.74	0	29.74
Four Corner Square	WA	20,512	52,587	73,099	100.0%	88.2%	91.5%	126,672	674,597	0	801,269	6.18	14.55	11.98
Total		3,699,866	1,531,568	5,231,434	97.3%	84.1%	93.4%	$33,240,305	$24,699,886	$2,879,413	$60,819,604	$9.23	$19.17	$11.85