8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 5, 2008

KITE REALTY GROUP TRUST

(Exact name of registrant as specified in its charter)

Maryland	1-32268	11-3715772
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification Number)
30 S. Meridian Street
Suite 1100
Indianapolis, IN		46204
(Address of principal executive offices)		(Zip Code)

(317) 577-5600

(Registrant's telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition.

On November 5, 2008, Kite Realty Group Trust (the "Company") announced its consolidated financial results for the quarter ended September 30, 2008. A copy of the Company's earnings press release is furnished as Exhibit 99.1 to this current report on Form 8-K. A copy of the Company's Third Quarter Supplemental Disclosure is furnished as Exhibit 99.2 to this current report on Form 8-K. The information contained in Item 2.02 of this current report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed "filed" with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements and Exhibits.

(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits.

Exhibit No.	Description
99.1	Kite Realty Group Trust Earnings Press Release dated November 5, 2008
99.2	Kite Realty Group Trust Third Quarter Supplemental Disclosure

SIGNATURES

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

	KITE REALTY GROUP TRUST
Date: November 5, 2008	By:	/s/ Daniel R. Sink
		Daniel R. Sink
		Executive Vice President,
		Chief Financial Officer
		and Treasurer

EXHIBIT INDEX

Exhibit	Document
99.1	Kite Realty Group Trust Earnings Press Release dated November 5, 2008
99.2	Kite Realty Group Trust Third Quarter Supplemental Disclosure

EX-99

Contacts: Kite Realty Group Trust
Dan Sink Chief Financial Officer (317) 577-5609 dsink@kiterealty.com   Kite Realty Group Trust
Adam Chavers Director of Investor Relations (317) 713-5684 achavers@kiterealty.com

Kite Realty Group Trust Announces

Third Quarter 2008 Financial Results

- Declared fourth quarter common share distribution at $0.205 per share -

Highlights

• Funds From Operations (FFO) was $0.32 per diluted share for the third quarter of 2008. FFO for the nine months ended September 30, 2008 was $0.94 per diluted share.

• Generated liquidity by funding an additional $25 million of the previously announced $60 million variable rate unsecured term loan and fixing the interest rate with a hedge at 5.92%.

• Refinanced or extended approximately $80 million of 2009 maturities and secured refinancing commitments from lending institutions for an additional $43 million.

• In October, completed a common equity offering, receiving net proceeds of $47.8 million, which were used to pay down the Company's revolving line of credit.

• As a result of its equity offering, the Company has approximately $100 million available in cash and capacity under its revolving line of credit.

Indianapolis, Ind., November 5, 2008 – Kite Realty Group Trust (NYSE: KRG) (the “Company”) today announced results for its third quarter ended September 30, 2008. Financial statements and exhibits attached to this release include results for the three and nine months ended September 30, 2008 and 2007.

Financial and Operating Results

For the three months ended September 30, 2008, funds from operations (FFO), a widely accepted supplemental measure of REIT performance established by the National Association of Real Estate Investment Trusts, was $12.0 million, or $0.32 per diluted share, for the Kite Portfolio compared to $12.0 million, or $0.32 per diluted share, for the same period in the prior year. The Company’s allocable share of FFO was $9.3 million for the three months ended September 30, 2008 compared to $9.3 million for the same period in 2007. For the first nine months of 2008, FFO for the Kite Portfolio was $35.1 million, or

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$0.94 per diluted share, compared to $34.5 million, or $0.92 per diluted share for the same period in the prior year.

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

Total revenue for the third quarter of 2008 was $35.0 million compared to $33.3 million for the same period in 2007, an increase of approximately 5.1%. The Company’s net income for the third quarter of 2008 was $2.9 million, compared to $3.9 million for the third quarter of 2007.

Total revenue for the first nine months of 2008 was $102.9 million compared to $99.2 million for the same period in 2007, an increase of 3.7%. The Company’s net income for the nine months of 2008 was $8.1 million, compared to $8.3 million for the same period in 2007.

“Although recent economic developments have presented extraordinary challenges, we made strong progress during the third quarter on important initiatives including the equity offering and term loan that will contribute to the Company’s long-term stability and growth,” said John A. Kite, Kite Realty Group’s President and Chief Executive Officer. “We are pleased to have approximately $100 million available in cash and capacity under our line of credit. This will allow us to finish the year and prepare for 2009 with flexibility and strength.”

Operating Portfolio

As of September 30, 2008, the Company owned interests in 52 retail operating properties totaling approximately 8.5 million square feet. The owned gross leasable area (“GLA”) in the Company’s retail operating portfolio was 91.9% leased as of September 30, 2008, compared to 93.0% leased as of the end of the prior quarter. This decrease is partially attributed to the transfer of three properties from the development and redevelopment pipeline to the operating portfolio. At the end of the third quarter, Glendale Town Center, in Indianapolis, Indiana, was 91.6% leased; Bayport Commons, in Tampa, Florida, was 90.8% leased; and Gateway Shopping Center near Seattle, Washington was 76.2% leased. Including leases under negotiation with prospective tenants, Gateway’s leased percentage would be approximately 91%.

In addition, the Company owns five commercial operating properties totaling 562,652 square feet. As of September 30, 2008, the owned net rentable area of the commercial operating portfolio was 97.8% leased, unchanged from the end of the prior quarter. For the combined retail and commercial operating portfolio, the leased percentage was 92.5%, compared to 93.3% at the end of the prior quarter.

On a same property basis, the leased percentage of 51 total operating properties was 93.3% at September 30, 2008 and 94.0% at September 30, 2007. Same property net operating income

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for these properties increased 0.4% and in the third quarter of 2008 and 0.3% the first nine months of 2008 compared to the same periods of the prior year.

Capital Markets Activities

In July, the Company obtained $30 million under an unsecured loan agreement arranged by KeyBanc Capital Markets. In August, the Company obtained an additional $25 million under this agreement. Both borrowings mature on July 15, 2011 and bear interest at LIBOR plus 265 basis points. The proceeds from these loans were used to pay down the Company’s unsecured revolving line of credit and other variable rate debt. Also during the quarter, the Company entered into a hedge against the $55 million with a fixed rate of 5.92%.

In October, the Company issued 4,750,000 shares of common equity at $10.55 per share. Net proceeds from the offering of approximately $48 million were used to pay down borrowings under the Company's revolving line of credit. As a result of this offering, the Company has approximately $100 million of total available capital, including approximately $85 million of availability under the revolving line of credit.

Financing Activities

During the quarter, the Company closed a construction loan to fund development activities at South Elgin Commons near Chicago, Illinois. The loan amount is $11.5 million and carries a variable interest rate of LIBOR plus 190 basis points. The first phase of South Elgin Commons consists of a 45,000 square foot LA Fitness Center.

As of September 30, 2008, the Company had approximately $230 million of loans maturing in 2008 and 2009 including the Company’s share of unconsolidated joint venture debt. Of this amount, approximately $80 million has been refinanced or extended and the Company has received refinancing and extension commitments from two lending institutions for an additional $43 million which are subject to customary due diligence by the lending institutions. Considering the refinancings and extensions that have already occurred, along with the commitments we have obtained, approximately 53% of our 2009 maturities have been addressed.

Additional information on the Company’s progress toward refinancing and extending the remaining loans maturing in 2009 can be found on pages 17 and 18 of the Company’s Third Quarter Supplemental which has been furnished on Form 8-K with the Securities and Exchange Commission and is available on the Company’s website.

Development Activities

As of September 30, 2008, the Company owned interests in 5 retail properties in the current development pipeline that are expected to total approximately 734,000 square feet. Approximately 428,000 square feet are anticipated to be owned directly by the Company or through joint ventures upon completion of the projects. The remaining square footage will be owned by anchor tenants upon completion of the developments. The total estimated cost of these projects is $105 million, of which approximately $57 million had been incurred as of September 30, 2008. Approximately 75% of the owned GLA at properties in the

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development pipeline is currently leased or in various stages of lease negotiations with tenants.

During the quarter, the Company signed a lease for 45,600 square feet with Publix at Delray Marketplace, located in Delray Beach, Florida. Publix Supermarket will join a 55,400 square foot Frank Theater as the anchors for this center. The anticipated total GLA of this development is 318,000 square feet.

Redevelopment Activities

During the third quarter, the Company added two properties to its redevelopment portfolio, Courthouse Shadows in Naples, Florida and Four Corner Square in Seattle, Washington. The Courthouse Shadows project involves the re-tenanting by Publix Supermarket of the former Albertson’s space and a related renovation of the entire center. At Four Corner Square, the Company is renovating a portion of the existing shopping center as part of a larger development which is anticipated to be anchored by a 60,000 square foot home improvement store and a Walgreens.

Leasing Activities

In the quarter, the Company executed 16 new and renewal leases for a total of 93,000 square feet.  A total of 11 leases for 75,000 square feet of previously unoccupied space were executed with initial rental rates approximately 43% above the operating portfolio averages.  The Company executed 5 new leases and renewals for 18,000 square feet of previously occupied space. 

For the nine months ended September 30, 2008, the Company executed a total of 32 leases for 308,000 square feet of previously unoccupied space with initial rental rates approximately 52% above the operating portfolio averages.  For the same period, the Company also executed a total of 19 new and renewal leases for 44,000 square feet of previously occupied space with initial rental rates approximately 8.1% above the previous rent payable for such space.

Distributions

On August 5, 2008, the Board of Trustees declared a regular quarterly cash distribution of $0.205 per common share for the quarter ended September 30, 2008 to shareholders and unit holders of record as of October 7, 2008. This distribution was paid on October 17, 2008.

On November 4, 2008, the Board of Trustees declared a regular quarterly cash distribution of $0.205 per common share for the quarter ended December 31, 2008 to shareholders and unit holders of record as of January 7, 2009. The declared distribution remained unchanged from the previous quarter and will be paid on or about January 16, 2009.

Appointment of Board Member

Darell E. “Gene” Zink, Jr. was appointed to the Company’s Board of Trustees on November 3, 2008. Mr. Zink is Chairman and CEO of Strategic Capital Partners, LLC, a privately-held real estate investment management firm.  Prior to founding this company, he spent 26 years

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with Duke Realty Corporation, an $8 billion real estate investment trust (DRE:NYSE) specializing in industrial, office and retail properties.  During his tenure with Duke Realty, Mr. Zink served in various positions, most recently as its CFO, Executive Vice President and Vice Chairman of the Company. He retired from Duke Realty in 2004. 

Earnings Guidance

The Company is revising its earnings and FFO guidance for the year ending December 31, 2008 to a range of $1.18 to $1.22 per diluted common share. This change primarily reflects the effects of the October offering of 4,750,000 common shares and the removal of the sale of a land parcel due to current market conditions.

Following is a reconciliation of the calculation of net income per diluted common share to FFO per share:

FFO Guidance Range for 2008	Low	High
Diluted net income per common share	$0.27	$0.30
Limited Partners’ interests in Operating Partnership	0.08	0.09
Depreciation and amortization of consolidated entities	0.82	0.82
Depreciation and amortization of unconsolidated entities	0.01	0.01
Diluted FFO per common share	$1.18	$1.22

Earnings Conference Call

Management will host a conference call on Thursday, November 6, 2008 at 10:00 a.m. ET to discuss financial results for the quarter ended September 30, 2008. A live webcast of the conference call will be available online on the Company’s corporate website at www.kiterealty.com. The dial-in numbers are (888) 713-4213 for domestic callers and (617) 213-4865 for international callers (passcode 91152418). After the live webcast, the call will remain available on the Company’s website until February 6, 2009. In addition, a telephonic replay of the call will be available until December 6, 2008. The replay dial-in telephone numbers are (888) 286-8010 for domestic callers and (617) 801-6888 for international callers (passcode 84161823).

About Kite Realty Group Trust

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

Safe Harbor

Statements regarding the Company’s 2008 FFO and earnings guidance, including the underlying assumptions are, and certain statements in this document that are not historical fact may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking

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statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including without limitation: national and local economic, business, real estate and other market conditions; the ability of tenants to pay rent; the competitive environment in which the Company operates; financing risks, including access to capital at desirable terms; property management risks; the level and volatility of interest rates; financial stability of tenants; the Company’s ability to maintain its status as a REIT for federal income tax purposes; acquisition, disposition, development and joint venture risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, which discusses these and other factors that could adversely affect the Company's results. The Company undertakes no obligation to publicly update or revise these forward-looking statements (including the FFO and net income estimates), whether as a result of new information, future events or otherwise.

###

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Kite Realty Group Trust

Consolidated Balance Sheets

(Unaudited)

	September 30, 2008			December 31, 2007
Assets:
Investment properties, at cost:
Land	$	237,864,199		$	210,486,125
Land held for development		25,431,845			23,622,458
Buildings and improvements		700,868,371			624,500,501
Furniture, equipment and other		4,993,966			4,571,354
Construction in progress		180,087,721			187,006,760
		1,149,246,102			1,050,187,198
Less: accumulated depreciation		(100,582,227	)		(84,603,939	)
		1,048,663,875			965,583,259
Cash and cash equivalents		11,597,842			19,002,268
Tenant receivables, including accrued straight-line rent of $7,610,684 and $6,653,244, respectively, net of allowance for uncollectible accounts		17,236,771			17,200,458
Other receivables		8,775,409			7,124,485
Investments in unconsolidated entities, at equity		1,575,710			1,079,937
Escrow deposits		12,782,323			14,036,877
Deferred costs, net		22,133,104			20,563,664
Prepaid and other assets		4,012,382			3,643,696
Total Assets	$	1,126,777,416		$	1,048,234,644
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness	$	728,823,323		$	646,833,633
Accounts payable and accrued expenses		44,696,193			36,173,195
Deferred revenue and other liabilities		24,353,570			26,127,043
Cash distributions and losses in excess of net investment in unconsolidated entities, at equity		825,483			234,618
Minority interest		4,416,656			4,731,211
Total Liabilities		803,115,225			714,099,700
Commitments and contingencies
Limited Partners’ interests in Operating Partnership		70,882,020			74,512,093
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 29,266,493 shares and 28,981,594 shares issued and outstanding at September 30, 2008 and December 31, 2007, respectively		292,665			289,816
Additional paid in capital and other		295,889,905			293,897,673
Accumulated other comprehensive loss		(2,118,126	)		(3,122,482	)
Accumulated deficit		(41,284,273	)		(31,442,156	)
Total Shareholders’ Equity		252,780,171			259,622,851
Total Liabilities and Shareholders’ Equity	$	1,126,777,416		$	1,048,234,644

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Kite Realty Group Trust

Consolidated Statements of Operations

For the Three Months and Nine Month Ended September 30, 2008 and 2007

(Unaudited)

	Three Months Ended September 30,						Nine Month Ended September 30,
	2008			2007			2008			2007
Revenue:
Minimum rent	$	19,113,753		$	17,986,066		$	56,292,261		$	53,718,366
Tenant reimbursements		4,734,427			4,525,236			14,676,286			13,865,960
Other property related revenue		3,797,675			3,223,938			11,934,334			7,961,957
Construction and service fee revenue		7,355,282			7,583,235			19,955,122			23,630,103
Total revenue		35,001,137			33,318,475			102,858,003			99,176,386
Expenses:
Property operating		4,184,274			3,827,878			12,690,912			11,436,900
Real estate taxes		3,619,869			3,132,986			10,169,369			8,848,531
Cost of construction and services		6,139,131			6,539,643			16,927,765			21,126,869
General, administrative, and other		1,452,845			1,702,354			4,422,201			4,758,278
Depreciation and amortization		8,295,167			7,019,703			24,915,498			23,858,996
Total expenses		23,691,286			22,222,564			69,125,745			70,029,574
Operating income		11,309,851			11,095,911			33,732,258			29,146,812
Interest expense		(7,512,825	)		(6,619,179	)		(22,117,890	)		(18,916,607	)
Income tax expense of taxable REIT subsidiary		(131,691	)		(32,789	)		(1,536,777	)		(295,395	)
Other income		45,619			519,760			142,527			719,355
Minority interest in income of consolidated subsidiaries		(22,230	)		(14,781	)		(37,830	)		(264,002	)
Equity in earnings of unconsolidated entities		65,640			48,024			212,935			217,899
Limited Partners’ interests in the Operating Partnership		(833,468	)		(1,124,927	)		(2,307,739	)		(2,376,206	)
Income from continuing operations		2,920,896			3,872,019			8,087,484			8,231,856
Operating income from discontinued operations, net of Limited Partners’ interests		—			19,376			—			63,716
Net income	$	2,920,896		$	3,891,395		$	8,087,484		$	8,295,572
Income per common share – basic
Continuing operations	$	0.10		$	0.13		$	0.28		$	0.29
Discontinued operations		—			—			—			—
	$	0.10		$	0.13		$	0.28		$	0.29
Income per common share – diluted
Continuing operations	$	0.10		$	0.13		$	0.28		$	0.28
Discontinued operations		—			—			—			—
	$	0.10		$	0.13		$	0.28		$	0.28
Weighted average common shares outstanding - basic		29,189,424			28,915,137			29,122,272			28,889,279
Weighted average common shares outstanding - diluted		29,201,838			29,139,244			29,152,576			29,180,860
Dividends declared per common share	$	0.205		$	0.205		$	0.615		$	0.595

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Kite Realty Group Trust

Funds From Operations

For the Three and Nine Months Ended September 30, 2008 and 2007

(Unaudited)

	Three Months Ended September 30,						Nine Month Ended September 30,
	2008			2007			2008			2007
Net income	$	2,920,896		$	3,891,395		$	8,087,484		$	8,295,572
Add Limited Partners’ interests in income		833,468			1,130,594			2,307,739			2,394,599
Add depreciation and amortization of consolidated entities, net of minority interest		8,105,171			6,873,292			24,406,665			23,520,510
Add depreciation and amortization of unconsolidated entities		101,944			100,864			304,572			302,828
Funds From Operations of the Kite Portfolio1		11,961,479			11,996,145			35,106,460			34,513,509
Deduct Limited Partners’ interests in Funds From Operations		(2,655,448	)		(2,709,654	)		(7,793,634	)		(7,731,026	)
Funds From Operations allocable to the Company1	$	9,306,031		$	9,286,491		$	27,312,826		$	26,782,483
Basic FFO per share of the Kite Portfolio	$	0.32		$	0.32		$	0.94		$	0.93
Diluted FFO per share of the Kite Portfolio	$	0.32		$	0.32		$	0.94		$	0.92
Basic weighted average Common Shares outstanding		29,189,424			28,915,137			29,122,272			28,889,279
Diluted weighted average Common Shares outstanding		29,201,838			29,139,244			29,152,576			29,180,860
Basic weighted average Common Shares and Units outstanding		37,478,165			37,314,752			37,440,393			37,288,971
Diluted weighted average Common Shares and Units outstanding		37,490,579			37,538,859			37,470,697			37,580,552

____________________
1	“Funds from Operations of the Kite Portfolio” measures 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’ weighted average diluted interests in the Operating Partnership.

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EX-99

SUPPLEMENTAL INFORMATION – SEPTEMBER 30, 2008

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 Nine Months Ended September 30
9	Funds from Operations and Other Financial Information for the Three and Nine Months Ended September 30
10	Market Capitalization
11	Same Property Net Operating Income for the Three and Nine Months Ended September 30
12	Net Operating Income by Quarter
13	Summary of Outstanding Debt as of September 30, 2008
14	Schedule of Outstanding Debt as of September 30, 2008
17	Refinancing Update
18	Refinancing Events Subsequent to September 30, 2008
19	Joint Venture Summary – Unconsolidated Properties
20	Condensed Combined Balance Sheets of Unconsolidated Properties
21	Condensed Combined Statements of Operations of Unconsolidated Properties for the Three and Nine Months Ended September 30
22	Top 10 Retail Tenants by Gross Leasable Area
23	Top 25 Tenants by Annualized Base Rent
24	Lease Expirations – Operating Portfolio
25	Lease Expirations – Retail Anchor Tenants
26	Lease Expirations – Retail Shops
27	Lease Expirations – Commercial Tenants
28	Summary Retail Portfolio Statistics Including Joint Venture Properties
29	Summary Commercial Portfolio Statistics
30	Current Development Pipeline
31	Current Redevelopment Projects
32	Visible Shadow Pipeline
33	Geographic Diversification – Operating Portfolio
34	Operating Retail Properties
38	Operating Commercial Properties
39	Retail Operating Portfolio – Tenant Breakdown

 

p.2 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

CORPORATE PROFILE

General Description

Kite Realty Group Trust is a full-service, vertically integrated real estate company engaged primarily in the development, construction, acquisition, ownership and operation of high-quality neighborhood and community shopping centers in selected markets in the United States. We are organized as a real estate investment trust ("REIT") for federal income tax purposes. As of September 30, 2008, we owned interests in 57 operating properties totaling approximately 9.0 million square feet, an additional 0.7 million square feet in five properties currently under development and another 0.5 million square feet in five properties under redevelopment.

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 September 30, 2008

Ø	Operating Retail Properties1	52
Ø	Operating Commercial Properties	5
Ø	Total Properties Under Development	5
Ø	Total Properties Under Redevelopment	5
Ø	States	9
Ø	Total GLA/NRA of Operating Properties	9,041,996
Ø	Owned GLA/NRA of Operating Properties	5,622,494
Ø	Total GLA of Properties Under Development/Redevelopment	1,253,888
Ø	Percentage of Owned GLA/NRA Leased – Total Portfolio	92.5%
Ø	Percentage of Owned GLA Leased – Retail Operating	91.9%
Ø	Percentage of Owned NRA Leased – Commercial Operating	97.8%
Ø	Total Full-Time Employees, including 88 home office employees	124

	____________________
1		Excludes Sandifur Plaza, a 12,538 square foot retail shopping center in Tri-Cities, OR which is designated as a built-to-suit asset.

Stock Listing: New York Stock Exchange symbol: KRG

 

p.3 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

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:
Dan Sink, Chief Financial Officer	BMO Capital Markets	Raymond James
Adam Chavers, Director of Investor Relations	Mr. Paul E. Adornato, CFA	Mr. Paul Puryear
Kite Realty Group Trust	(212) 885-4170	(727) 567-2253
30 South Meridian Street, Suite 1100	paul.adornato@bmo.com	paul.puryear@raymondjames.com
Indianapolis, IN 46204
(317) 577-5609	Cantor Fitzgerald	RBC Capital Markets
dsink@kiterealty.com	Mr. Philip J. Martin	Mr. Rich Moore
achavers@kiterealty.com	(312) 469-7485	(440) 715-2646
	pmartin@cantor.com	rich.moore@rbccm.com
Transfer Agent:
	Citigroup Global Markets	Stifel, Nicholaus & Company, Inc.
BNY Mellon Shareholder Services	Mr. Michael Bilerman	Mr. David M. Fick, CPA/Mr. Nathan Isbee
Mr. James Balsan	(212) 816-1383	(443) 224-1308/(443) 224-1346
480 Washington Blvd., 29th Floor	michael.bilerman@citigroup.com	dmfick@stifel.com
Jersey City, NJ 07310		nisbee@stifel.com
(800) 820-8521	Credit Suisse
	Mr. Michael Gorman	Wachovia Securities
	(212) 538-4357	Mr. Jeffrey J. Donnelly, CFA
Stock Specialist:	michael.gorman@credit-suisse.com	(617) 603-4262
		jeff.donnelly@wachovia.com
Barclays Capital	Goldman, Sachs & Co.
45 Broadway	Mr. Jonathan Haberman
20th Floor	(917) 343-4260
New York, NY 10006	jonathan.haberman@gs.com
(646) 333-7000

 

p.4 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 to be filed on or about November 10, 2008, which should be read in conjunction with this supplement. 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, including access to capital at desirable terms

• 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, 2007 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 depreciated 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 depreciated 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 Trust Supplemental Financial and Operating Statistics – 9/30/08

CORPORATE STRUCTURE CHART – SEPTEMBER 30, 2008

 

p.6 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	September 30, 2008			December 31, 2007
Assets:
Investment properties, at cost:
Land	$	237,864,199		$	210,486,125
Land held for development		25,431,845			23,622,458
Buildings and improvements		700,868,371			624,500,501
Furniture, equipment and other		4,993,966			4,571,354
Construction in progress		180,087,721			187,006,760
		1,149,246,102			1,050,187,198
Less: accumulated depreciation		(100,582,227	)		(84,603,939	)
		1,048,663,875			965,583,259
Cash and cash equivalents		11,597,842			19,002,268
Tenant receivables, including accrued straight-line rent of $7,610,684 and $6,653,244, respectively, net of allowance for uncollectible accounts		17,236,771			17,200,458
Other receivables		8,775,409			7,124,485
Investments in unconsolidated entities, at equity		1,575,710			1,079,937
Escrow deposits		12,782,323			14,036,877
Deferred costs, net		22,133,104			20,563,664
Prepaid and other assets		4,012,382			3,643,696
Total Assets	$	1,126,777,416		$	1,048,234,644
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness	$	728,823,323		$	646,833,633
Accounts payable and accrued expenses		44,696,193			36,173,195
Deferred revenue and other liabilities		24,353,570			26,127,043
Cash distributions and losses in excess of net investment in unconsolidated entities, at equity		825,483			234,618
Minority interest		4,416,656			4,731,211
Total Liabilities		803,115,225			714,099,700
Commitments and contingencies
Limited Partners’ interests in Operating Partnership		70,882,020			74,512,093
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 29,266,493 shares and 28,981,594 shares issued and outstanding at September 30, 2008 and December 31, 2007, respectively		292,665			289,816
Additional paid in capital and other		295,889,905			293,897,673
Accumulated other comprehensive loss		(2,118,126	)		(3,122,482	)
Accumulated deficit		(41,284,273	)		(31,442,156	)
Total Shareholders’ Equity		252,780,171			259,622,851
Total Liabilities and Shareholders’ Equity	$	1,126,777,416		$	1,048,234,644

 

p.7 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

CONSOLIDATED STATEMENTS OF OPERATIONS – THREE AND NINE MONTHS (UNAUDITED)

	Three Months Ended September 30,						Nine Month Ended September 30,
	2008			2007			2008			2007
Revenue:
Minimum rent	$	19,113,753		$	17,986,066		$	56,292,261		$	53,718,366
Tenant reimbursements		4,734,427			4,525,236			14,676,286			13,865,960
Other property related revenue		3,797,675			3,223,938			11,934,334			7,961,957
Construction and service fee revenue		7,355,282			7,583,235			19,955,122			23,630,103
Total revenue		35,001,137			33,318,475			102,858,003			99,176,386
Expenses:
Property operating		4,184,274			3,827,878			12,690,912			11,436,900
Real estate taxes		3,619,869			3,132,986			10,169,369			8,848,531
Cost of construction and services		6,139,131			6,539,643			16,927,765			21,126,869
General, administrative, and other		1,452,845			1,702,354			4,422,201			4,758,278
Depreciation and amortization		8,295,167			7,019,703			24,915,498			23,858,996
Total expenses		23,691,286			22,222,564			69,125,745			70,029,574
Operating income		11,309,851			11,095,911			33,732,258			29,146,812
Interest expense		(7,512,825	)		(6,619,179	)		(22,117,890	)		(18,916,607	)
Income tax expense of taxable REIT subsidiary		(131,691	)		(32,789	)		(1,536,777	)		(295,395	)
Other income		45,619			519,760			142,527			719,355
Minority interest in income of consolidated subsidiaries		(22,230	)		(14,781	)		(37,830	)		(264,002	)
Equity in earnings of unconsolidated entities		65,640			48,024			212,935			217,899
Limited Partners’ interests in the Operating Partnership		(833,468	)		(1,124,927	)		(2,307,739	)		(2,376,206	)
Income from continuing operations		2,920,896			3,872,019			8,087,484			8,231,856
Operating income from discontinued operations, net of Limited Partners’ interests		—			19,376			—			63,716
Net income	$	2,920,896		$	3,891,395		$	8,087,484		$	8,295,572
Income per common share – basic
Continuing operations	$	0.10		$	0.13		$	0.28		$	0.29
Discontinued operations		—			—			—			—
	$	0.10		$	0.13		$	0.28		$	0.29
Income per common share – diluted
Continuing operations	$	0.10		$	0.13		$	0.28		$	0.28
Discontinued operations		—			—			—			—
	$	0.10		$	0.13		$	0.28		$	0.28
Weighted average common shares outstanding - basic		29,189,424			28,915,137			29,122,272			28,889,279
Weighted average common shares outstanding - diluted		29,201,838			29,139,244			29,152,576			29,180,860
Dividends declared per common share	$	0.205		$	0.205		$	0.615		$	0.595

 

p.8 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

FUNDS FROM OPERATIONS AND OTHER FINANCIAL INFORMATION –THREE AND NINE MONTHS

	Three Months Ended September 30,						Nine Month Ended September 30,
	2008			2007			2008			2007
Net income	$	2,920,896		$	3,891,395		$	8,087,484		$	8,295,572
Add Limited Partners’ interests in income		833,468			1,130,594			2,307,739			2,394,599
Add depreciation and amortization of consolidated entities, net of minority interest		8,105,171			6,873,292			24,406,665			23,520,510
Add depreciation and amortization of unconsolidated entities		101,944			100,864			304,572			302,828
Funds From Operations of the Kite Portfolio1		11,961,479			11,996,145			35,106,460			34,513,509
Deduct Limited Partners’ interests in Funds From Operations		(2,655,448	)		(2,709,654	)		(7,793,634	)		(7,731,026	)
Funds From Operations allocable to the Company1	$	9,306,031		$	9,286,491		$	27,312,826		$	26,782,483
Basic FFO per share of the Kite Portfolio	$	0.32		$	0.32		$	0.94		$	0.93
Diluted FFO per share of the Kite Portfolio	$	0.32		$	0.32		$	0.94		$	0.92
Basic weighted average Common Shares outstanding		29,189,424			28,915,137			29,122,272			28,889,279
Diluted weighted average Common Shares outstanding		29,201,838			29,139,244			29,152,576			29,180,860
Basic weighted average Common Shares and Units outstanding		37,478,165			37,314,752			37,440,393			37,288,971
Diluted weighted average Common Shares and Units outstanding		37,490,579			37,538,859			37,470,697			37,580,552
Other Financial Information:
Recurring capital expenditures2
Tenant improvements - Retail	$	82,845		$	133,808		$	256,922		$	282,494
Tenant improvements – Commercial3		455			946,004			111,082			1,200,090
Leasing commissions - Retail		57,305			78,969			377,581			221,901
Leasing commissions – Commercial3		—			404,014			120,240			430,598
Capital improvements4		192,995			279,299			453,702			314,487
Scheduled debt principal payments		806,207			660,630			2,317,587			1,989,661
Straight line rent		494,519			643,502			957,440			1,151,580
Market rent amortization income from acquired leases		1,174,100			1,003,571			2,800,053			3,826,101
Market debt adjustment		107,714			107,714			323,143			323,143
Capitalized interest		2,496,179			3,410,118			7,182,244			9,685,321

____________________
1	“Funds from Operations of the Kite Portfolio” measures 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’ weighted average diluted interests in the Operating Partnership.
2	Excludes tenant improvements and leasing commissions relating to development projects and first-generation space.
3	Substantially all commercial tenant improvements and leasing commissions relate to a single tenant at the 30 South property.
4	A portion of these capital improvements are reimbursed by tenants and are revenue producing.

 

p.9 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

MARKET CAPITALIZATIONAS OF SEPTEMBER 30, 2008

	As of September 30, 2008							Pro-forma September 30, 2008 1
			Total			Percent of				Total			Percent of
	Percent of		Market			Total Market		Percent of		Market			Total Market
	Total Equity		Capitalization			Capitalization		Total Equity		Capitalization			Capitalization
Equity Capitalization:
Total Common Shares Outstanding	78.1	%		29,266,493				80.6	%		34,016,493
Operating Partnership ("OP") Units	21.9	%		8,212,479				19.4	%		8,212,479
Combined Common Shares and OP Units	100.0	%		37,478,972				100.0	%		42,228,972
Market Price of Common Shares at September 30, 2008			$	11.00						$	11.00
Total Equity Capitalization			$	412,268,692		37	%			$	464,518,692		42	%
Debt Capitalization:
Company Outstanding Debt			$	728,823,323						$	681,023,323
Less: Partner Share of Consolidated Joint Venture Debt				(58,902,563	)						(58,902,563	)
Company Share of Outstanding Debt				669,920,760							622,120,760
Pro-rata Share of Unconsolidated Joint Venture Debt				30,020,247							30,020,247
Less: Cash and Cash Equivalents				(11,597,842	)						(11,597,842	)
Total Net Debt Capitalization			$	688,343,165		63	%			$	640,543,165		58	%
Total Market Capitalization			$	1,100,611,857		100	%			$	1,105,061,857		100	%

____________________
1	The pro-forma calculation summarizes the Company’s market capitalization as if the October 7, 2008 equity offering occurred on September 30, 2008. The Company issued 4,750,000 common shares and received net proceeds of $47.8 million (after offering costs), all of which was used to pay down the Company’s unsecured revolving credit facility.

 

p.10 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

SAME PROPERTY NET OPERATING INCOME (NOI)

	Three Months Ended September 30								Nine Months Ended September 30
	2008			2007			% Change		2008			2007			% Change
Number of properties at period end1		51			51					51			51
Occupancy at period-end		93.3%			94.0%					93.3%			94.0%
Minimum rent	$	16,027,028		$	16,188,460				$	48,439,141		$	49,044,398
Tenant recoveries		4,198,262			4,158,149					13,006,557			12,965,014
Other income		514,867			515,369					1,701,774			1,605,367
Pro rata share of revenue – unconsolidated joint venture properties		501,890			524,375					1,498,443			1,328,754
		21,242,047			21,386,353					64,645,915			64,943,533
Property operating expenses		3,149,793			3,572,157					9,818,648			10,926,464
Real estate taxes		3,166,386			2,915,402					9,144,656			8,587,457
Pro rata share of expenses – unconsolidated joint venture properties		201,885			226,377					559,027			445,612
		6,518,064			6,713,936					19,522,331			19,959,533
Net operating income – same properties (51 properties)2,3		14,723,983			14,672,417		0.4	%		45,123,584			44,984,000		0.3	%
Reconciliation to Most Directly Comparable GAAP Measure:
Net operating income – same properties	$	14,723,983		$	14,672,417				$	45,123,584			$44,984,000
Other income (expense), net		(11,803,087	)		(10,781,022	)				(37,036,100	)		(36,688,428	)
Net income	$	2,920,896		$	3,891,395				$	8,087,484		$	8,295,572

____________________
1	Same Property analysis excludes Courthouse Shadows, Four Corner Square, Shops at Eagle Creek, and Bolton Plaza as the Company pursues redevelopment of these properties.
2	Same Property analysis excludes net gains from outlot sales, write offs of straight-line rent and FAS #141 deferred revenue and lease termination fees and significant prior year expense recoveries and adjustments, if any.
3	The Company has executed a lease with Bed Bath and Beyond and is in lease negotiations with a national retailer to replace two junior box anchors at Sunland Towne Centre. Excluding the effects of these two junior box vacancies, the same property net operating income would increase to 1.2% for both the three and nine month periods.

The Company believes that Net Operating Income 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 Trust Supplemental Financial and Operating Statistics – 9/30/08

NET OPERATING INCOMEBY QUARTER

	Three Months Ended
	September 30, 2008			June 30, 2008			March 31, 2008			December 31, 2007			September 30, 2007
Revenue:
Minimum rent	$	19,113,753		$	18,798,894		$	18,379,614		$	18,364,742		$	17,986,066
Tenant reimbursements		4,734,427			4,731,314			5,210,545			4,535,221			4,525,236
Other property related revenue1		3,310,129			2,650,185			4,763,860			3,048,596			3,223,938
Parking revenue, net2		98,090			(102,092	)		210,336			—			—
		27,256,399			26,078,301			28,564,355			25,948,559			25,735,240
Expenses:
Property operating		3,886,174			3,887,494			4,357,115			3,684,425			3,827,878
Real estate taxes		3,536,501			3,113,930			3,131,158			3,068,768			3,132,986
		7,422,675			7,001,424			7,488,273			6,753,193			6,960,864
Net Operating Income – Properties		19,833,724			19,076,877			21,076,082			19,195,366			18,774,376
Other Income (Expense):
Construction and service fee revenue		7,355,282			8,311,318			4,288,522			13,629,831			7,583,235
Cost of construction and services		(6,139,131	)		(7,024,400	)		(3,764,234	)		(10,950,145	)		(6,539,643	)
General, administrative, and other		(1,452,845	)		(1,259,407	)		(1,709,949	)		(1,540,623	)		(1,702,354	)
		(236,694	)		27,511			(1,185,661	)		1,139,063			(658,762	)
Earnings Before Interest, Taxes, Depreciation and Amortization		19,597,030			19,104,388			19,890,421			20,334,429			18,115,614
Depreciation and amortization		(8,287,179	)		(8,442,510	)		(8,129,892	)		(7,991,774	)		(7,019,702	)
Interest expense		(7,512,825	)		(7,351,499	)		(7,253,566	)		(7,048,534	)		(6,619,179	)
Income tax expense of taxable REIT subsidiary		(131,691	)		(251,858	)		(1,153,228	)		(466,233	)		(32,789	)
Other income		45,619			31,676			65,232			59,197			519,760
Minority interest in loss (income) of consolidated subsidiaries		(22,230	)		(19,756	)		4,156			(323,411	)		(14,781	)
Equity in earnings of unconsolidated entities		65,640			86,121			61,174			72,811			48,024
Limited partners’ interests in the continuing operations of the Operating Partnership		(833,468	)		(697,273	)		(776,998	)		(1,023,328	)		(1,124,928	)
Income from continuing operations		2,920,896			2,459,289			2,707,299			3,613,157			3,872,019
Discontinued operations3:
Operating income from discontinued operations, net of Limited Partners’ interests		—			—			—			31,835			19,376
Gain on sale of operating property, net of Limited Partners’ interests		—			—			—			1,582,119			—
Income from discontinued operations		—			—			—			1,613,954			19,376
Net income	$	2,920,896		$	2,459,289		$	2,707,299		$	5,227,111		$	3,891,395
NOI/Revenue -  Properties		72.8%			73.2%			73.8%			74.0%			73.0%
Recovery Ratio -  Properties 4		63.8%			67.6%			69.6%			67.2%			65.0%
Recovery ratio excluding impact of Indiana tax assessment5		65.5%	5		N/A			N/A			N/A			N/A
Recovery Ratio with impact of Market Street tax reimbursement		N/A			68.6%			N/A			N/A			N/A

____________________
1	Other property related revenue for the three months ended September 30, 2008 includes net gains on land sales of $3.1 million and lease termination fees of approximately $0.2 million.
2	Effective January 1, 2008, the Company changed the structure of the parking garage agreement at its Union Station property from a lease to a management agreement with a third party. During the three months ended June 30, 2008, the Company recorded the effects of a real estate tax reassessment of the parking garage property.
3	In November 2007, the Company sold its 176th & Meridian property.
4	“Recovery Ratio” is computed by dividing property operating and real estate tax expenses into tenant reimbursements.
5	Reflects increased real estate tax assessment at various Indiana properties. Because of Indiana’s in arrears RET structure, recovery cannot be automatically assumed and therefore has not been accrued. Excluding this unusual item, the recovery ratio would be 65.5%.

 

p.12 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

SUMMARY OF OUTSTANDING DEBT AS OF SEPTEMBER 30, 2008 SEE FINANCING UPDATE ON PAGES 17 AND 18

TOTAL OUTSTANDING DEBT
	Outstanding Amount			Ratio		Weighted Average Interest Rate		Weighted Average Maturity (in years)
Fixed Rate Debt:
Consolidated	$	331,814,897		44	%	6.01	%	6.2
Unconsolidated		8,020,247		1	%	6.60	%	3.8
Floating Rate Debt (Hedged)1		205,280,505		27	%	5.96	%	1.7
Total Fixed Rate Debt		545,115,649		72	%	6.00	%	4.5
Variable Rate Debt:2
Construction Loans		167,139,919		22	%	5.46	%	0.7
Other Variable		228,352,165		30	%	5.58	%	2.3
Floating Rate Debt (Hedged)1		(205,280,505	)	-27	%	-5.61	%	-1.7
Unconsolidated		22,000,000		3	%	4.78	%	0.9
Total Variable Rate Debt		212,211,579		28	%	5.38	%	1.4
Net Premiums on Fixed Rate Debt		1,516,342		N/A		N/A		N/A
Total	$	758,843,570		100	%	5.82	%	3.6

SCHEDULE OF MATURITIES BY YEAR
Mortgage Debt									SEE FINANCING UPDATE ON PAGES 17 AND 18
	Annual Maturity		Term Maturities		Corporate Debt		Construction Loans		Total Consolidated Outstanding Debt		KRG Share of Unconsolidated Mortgage Debt		Total Consolidated and Unconsolidated Debt
2008	$	735,227	$	—	$	—	$	17,948,770	$	18,683,997	$	56,168	$	18,740,165
2009		3,157,198		48,163,980		—		138,962,952		190,284,130		24,223,431		214,507,561
2010		3,144,734		—		—		10,228,197		13,372,931		96,813		13,469,744
20113		3,124,697		23,098,794		203,574,024		—		229,797,515		103,335		229,900,850
2012		3,549,537		35,355,396		—		—		38,904,933		109,258		39,014,191
2013		3,556,861		4,027,491		—		—		7,584,352		5,431,242		13,015,594
2014		3,262,898		23,974,217		—		—		27,237,115		—		27,237,115
2015		2,956,748		38,301,942		—		—		41,258,690		—		41,258,690
2016 and Beyond		4,809,031		155,374,287		—		—		160,183,318		—		160,183,318
Net Premiums on Fixed Rate Debt		—		—		—		—		1,516,342		—		1,516,342
Total	$	28,296,931	$	328,296,107	$	203,574,024	$	167,139,919	$	728,823,323	$	30,020,247	$	758,843,570

____________________
1	These debt obligations are hedged by interest rate swap agreements which consist of the following:
	Consolidated Debt				$	188,480,505
	KRG Share of Unconsolidated Debt					16,800,000
	Total				$	205,280,505
2	Variable rate debt, net of interest rate swap transactions:
	-	Construction	$	108,659,414			14	%
	-	Other Variable		98,352,165			13	%	(includes debt on acquisition land held for development)
	-	Unconsolidated		5,200,000			1	%	(includes debt on acquisition land held for development)
		Total	$	212,211,579			28	%
3	The Unsecured Credit Facility matures on February 11, 2011. A one-year extension is available if the Company remains in compliance with the restrictive covenants thereunder.

 

p.13 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

SCHEDULE OF OUTSTANDING DEBT AS OF SEPTEMBER 30, 2008

CONSOLIDATED DEBT
Fixed Rate Debt		Interest Rate		Maturity Date	Balance as of September 30, 2008			Monthly Debt Service as of September 30, 2008
50th & 12th		5.67	%	11/11/14	$	4,460,598		$	27,190
Boulevard Crossing		5.11	%	12/11/09		11,960,622			68,815
Centre at Panola, Phase I		6.78	%	1/1/22		3,882,280			36,583
Cool Creek Commons		5.88	%	4/11/16		18,000,000			91,140
Corner Shops, The		7.65	%	7/1/11		1,675,297			17,111
Fox Lake Crossing		5.16	%	7/1/12		11,570,107			68,604
Geist Pavilion		5.78	%	1/1/17		11,125,000			55,372
Indian River Square		5.42	%	6/11/15		13,300,000			62,074
International Speedway Square		7.17	%	3/11/11		18,976,569			139,142
Kedron Village		5.70	%	1/11/17		29,700,000			145,778
Pine Ridge Crossing		6.34	%	10/11/16		17,500,000			95,601
Plaza at Cedar Hill		7.38	%	2/1/12		26,081,733			193,484
Plaza Volente		5.42	%	6/11/15		28,680,000			133,856
Preston Commons		5.90	%	3/11/13		4,402,886			28,174
Ridge Plaza		5.15	%	10/11/09		16,022,457			92,824
Riverchase Plaza		6.34	%	10/11/16		10,500,000			57,360
Sunland Towne Centre		6.01	%	7/1/16		25,000,000			129,382
30 South		6.09	%	1/11/14		22,125,802			142,257
Traders Point		5.86	%	10/11/16		48,000,000			242,213
Whitehall Pike		6.71	%	7/5/18		8,851,546			77,436
Subtotal					$	331,814,897		$	1,904,396
Floating Rate Debt (Hedged)	Lender	Interest Rate		Maturity Date	Balance as of September 30, 2008			Monthly Debt Service as of September 30, 2008
Unsecured Credit Facility1	KeyBank	6.42	%	2/20/11	$	50,000,000		$	267,583
Unsecured Credit Facility1	KeyBank	6.27	%	2/18/11		25,000,000			130,521
Unsecured Term Loan1	KeyBank	5.92	%	7/15/11		55,000,000			271,333
Beacon Hill2	Fifth Third Bank	5.13	%	3/30/09		11,000,000			47,025
Delray Marketplace	Wachovia Bank	5.85	%	1/3/09		1,563,296			7,621
Estero Town Commons	Wachovia Bank	5.55	%	1/3/09		16,038,904			74,180
Naperville Marketplace	LaSalle Bank	6.05	%	12/30/08		10,000,000			50,417
Tarpon Springs Plaza	Wachovia Bank	5.55	%	1/3/09		19,878,305			91,937
Subtotal					$	188,480,505		$	940,617
TOTAL CONSOLIDATED FIXED RATE DEBT					$	520,295,402		$	2,845,013
TOTAL NET PREMIUMS					$		1,516,342
Variable Rate Debt: Mortgages	Lender	Interest Rate3		Maturity Date	Balance as of September 30, 2008
Fishers Station4	National City Bank	LIBOR + 150		6/6/09	$	4,316,421
Indiana State Motor Pool	Old National Bank	LIBOR + 135		2/4/11		3,861,720
Rivers Edge	Huntington Bank	LIBOR + 125		2/3/09		16,600,000
Subtotal					$	24,778,141

____________________
1	The Company entered into a fixed rate swap agreement, which is designated as a hedge against the unsecured credit facility and term loan.
2	The interest rate decreases from LIBOR+125 to LIBOR+115 on $11 million, which was fixed through an interest rate swap agreement.
3	At September 30, 2008, one-month LIBOR was 3.93%.
4	The Company has a 25% interest in this property. The loan is guaranteed by Kite Realty Group, LP, the operating partnership.

 

p.14 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

SCHEDULE OF OUTSTANDING DEBT AS OF SEPTEMBER 30, 2008 (CONTINUED) SEE FINANCING UPDATE ON PAGES 17 AND 18

Variable Rate Debt: Construction Loans	Lender	Interest Rate1	Maturity Date	Total Commitment		Balance as of September 30, 2008
Bayport Commons2	Bank of America	LIBOR + 125	12/27/09	$	23,100,000	$	20,981,016
Beacon Hill3,4	Fifth Third Bank	LIBOR + 125	3/30/09		34,800,000		11,859,698
Bridgewater Marketplace	Indiana Bank And Trust	LIBOR + 185	6/29/09		12,000,000		8,347,801
Cobblestone Plaza3	Wachovia Bank	LIBOR + 160	6/29/09		44,500,000		30,019,244
Delray Marketplace3	Wachovia Bank	LIBOR + 185	1/3/09		30,000,000		9,425,000
Estero Town Commons5	Wachovia Bank	LIBOR + 155	1/3/09		18,760,000		16,038,904
Gateway Shopping Center3	Union Bank of California	LIBOR + 200	8/13/09		22,268,000		17,948,984
Naperville Marketplace	Bank of America	LIBOR + 130	12/30/08		14,400,000		10,000,000
Red Bank Commons	Huntington Bank	LIBOR + 130	3/30/09		4,464,000		4,464,000
South Elgin Commons	Charter One Bank	LIBOR + 190	9/30/10		11,550,000		4,181,797
Spring Mill Medical II6	Old National Bank	LIBOR + 125	3/7/10		7,840,000		6,046,400
Tarpon Springs Plaza	Wachovia Bank	LIBOR + 155	1/3/09		20,000,000		19,878,305
Traders Point II	Huntington Bank	LIBOR + 115	12/31/08		9,587,000		7,948,770
Subtotal				$	253,269,000	$	167,139,919
Corporate Debt	Lender	Interest Rate1	Maturity Date	Total Available as of September 30, 2008		Balance as of September 30, 2008
Unsecured Credit Facility7,8,9	KeyBank	LIBOR + 135	2/20/11	$	200,000,000	$	148,574,024
Unsecured Term Loan8	KeyBank	LIBOR + 265	7/15/11		55,000,000		55,000,000
Floating Rate Debt (Hedged)	Lender	Interest Rate1	Maturity Date			Balance as of September 30, 2008
Unsecured Credit Facility8	KeyBank	LIBOR + 135	2/20/11			$	(50,000,000)
Unsecured Credit Facility8	KeyBank	LIBOR + 135	2/18/11				(25,000,000)
Unsecured Term Loan8	KeyBank	LIBOR + 265	7/15/11				(55,000,000)
Beacon Hill	Fifth Third Bank	LIBOR + 125	3/30/09				(11,000,000)
Delray Marketplace	Wachovia Bank	LIBOR + 185	1/3/09				(1,563,296)
Estero Town Commons	Wachovia Bank	LIBOR + 155	1/3/09				(16,038,904)
Naperville Marketplace	Bank of America	LIBOR + 130	12/30/08				(10,000,000)
Tarpon Springs Plaza	Wachovia Bank	LIBOR + 155	1/3/09				(19,878,305)
Subtotal						$	(188,480,505)
TOTAL CONSOLIDATED VARIABLE RATE DEBT						$	207,011,579
TOTAL DEBT PER CONSOLIDATED BALANCE SHEET						$	728,823,323

____________________
1	At September 30, 2008, the one-month LIBOR interest rate was 3.93%.
2	The Company has a preferred return, then a 60% interest. This loan is guaranteed by Kite Realty Group, LP.
3	The Company has a preferred return, then a 50% interest. This loan is guaranteed by Kite Realty Group, LP.
4	The interest rate is LIBOR+115 basis points on $11 million of this amount which was fixed through an interest rate swap agreement.
5	The Company has a preferred return, then a 40% interest. This loan is guaranteed by Kite Realty Group, L.P.
6	The Company has a 50% interest. This loan is guaranteed by Kite Realty Group, LP.
7	The Company has 46 unencumbered properties of which45 are wholly owned and used as collateral under the unsecured credit facility and one of which is owned in a joint venture. The major unencumbered properties include: Broadstone Station, Circuit City Plaza, Courthouse Shadows, Eagle Creek Lowes, Eastgate Pavilion, Four Corner Square, Glendale Town Center, Hamilton Crossing Centre, Kings Lake Square, Market Street Village, PEN Products, Publix at Acworth, Shops at Eagle Creek, Silver Glen Crossing, Union Station Parking Garage, Wal-Mart Plaza and Waterford Lakes Village.
8	The Company entered into a fixed rate swap agreement which is designated as a hedge against the unsecured credit facility and term loan.
9	The total amount available for borrowing under the revolving credit facility is $200,000,000, of which $148,574,024 was outstanding as of September 30, 2008. The net proceeds of $47.8 million from the Company’s October common share offering were used to pay down the revolving credit facility.

 

p.15 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

SCHEDULE OF OUTSTANDING DEBT AS OF SEPTEMBER 30, 2008 (CONTINUED) SEE FINANCING UPDATE ON PAGES 17 AND 18

UNCONSOLIDATED DEBT
Fixed Rate Debt	Servicer	Interest Rate		Maturity Date			Balance as of September 30, 2008						Monthly Debt Service as of September 30, 2008
The Centre1	Laureate Capital	6.99	%	6/1/09			$		3,611,459				$	39,897
Spring Mill Medical1	Wells Fargo Bank	6.45	%	9/1/13					11,706,743					78,204
Subtotal							$		15,318,202				$	118,101
Joint Venture Partners’ Share									(7,297,955			)
KRG SHARE							$		8,020,247
Floating Rate Debt (Hedged)	Lender	Interest Rate		Maturity Date			Balance as of September 30, 2008						Monthly Debt Service as of September 30, 2008
Parkside Town Commons	LaSalle Bank	5.60	%	3/2/09			$			42,000,000			$	195,965
Joint Venture Partners’ Share – 60%	Bank of America									(25,200,000		)		(117,579	)
KRG SHARE							$			16,800,000			$	78,386
TOTAL UNCONSOLIDATED FIXED RATE DEBT							$			24,820,247
Variable Rate Debt - Construction Loans	Lender	Interest Rate3		Maturity Date	Total Commitment		Balance as of September 30, 2008
Parkside Town Commons	Bank of America	LIBOR + 85		8/31/09	$	55,000,000		$			55,000,000
Joint Venture Partners’ Share – 60%											(33,000,000	)
KRG SHARE								$			22,000,000
Floating Rate Debt (Hedged)	Lender	Interest Rate3		Maturity Date			Balance as of September 30, 2008
Parkside Town Commons2	Bank of America	LIBOR + 85		3/2/09				$			(42,000,000	)
Joint Venture Partners’ Share – 60%											25,200,000
KRG SHARE								$			(16,800,000	)
TOTAL UNCONSOLIDATED VARIABLE RATE DEBT								$			5,200,000
TOTAL KRG UNCONSOLIDATED DEBT								$			30,020,247
TOTAL KRG CONSOLIDATED DEBT											728,823,323
TOTAL KRG DEBT								$			758,843,570

____________________
1	The Company owns a 50% interest in Spring Mill Medical and a 60% interest in The Centre.
2	The Company owns a 40% interest in Parkside Town Commons. This will change to a 20% ownership at the time of the hard cost construction financing.
3	At September 30, 2008, the one-month LIBOR interest rate was 3.93%.

 

p.16 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

2008/2009 REFINANCING UPDATE

Current Maturity Date	Property	Balance at September 30, 2008	Existing Rate	New Maturity Date	Expected Closing	Comments
2008 Maturities
12/30/08	Naperville Marketplace	$10,000,000	LIBOR + 130		November 2008	Plan to extinguish with proceeds from mini-perm loan on unencumbered asset (Glendale)
12/31/08	Traders Point II	7,948,770	LIBOR + 115		November 2008	Plan to extinguish with proceeds from mini-perm loan on unencumbered asset (Glendale)
		17,948,770
2009 Maturities - Consolidated Entities
1/3/09	Delray Marketplace	9,425,000	LIBOR + 185		Q1 2009	Discussing extension with lender / Marketing to secure construction loan
1/3/09	Estero Town Center	16,038,904	LIBOR + 155	1/3/10		One year extension secured - Marketing for a three to four year mini-perm loan
1/3/09	Tarpon Spings Plaza	19,878,305	LIBOR + 155	1/3/10		One year extension secured - Marketing for a three to four year mini-perm loan
2/3/09	Rivers Edge	16,600,000	LIBOR + 125	2/3/10		One year extension secured with a $1,660,000 pay down
3/30/09	Beacon Hill	11,859,698	LIBOR + 125		Q1 2009	Automatic extension with debt service coverage ratio of 1.2x - Plan on paying down loan with land sale proceeds
3/30/09	Red Bank Commons	4,464,000	LIBOR + 130		November 2008	Plan to extinguish with proceeds from mini-perm loan on unencumbered asset (Glendale)
6/6/09	Fishers Station	4,316,421	LIBOR + 150		Q1 2009	Reviewing extension options
6/29/09	Bridgewater Marketplace	8,347,801	LIBOR + 185	6/29/10		One year extension secured with an additional automatic one year extension
6/29/09	Cobblestone Plaza	30,019,244	LIBOR + 160		Q1 2009	Negotiating extension of current construction loan
8/13/09	Gateway Shopping Center	17,948,984	LIBOR + 200	10/31/11		Three year mini-perm loan with a one year extension option secured
12/27/09	Bayport Commons	20,981,016	LIBOR + 125		November 2008	Three year extension committed and will close in Q4 2008
Q4 2009	Boulevard Crossing/ Ridge Plaza	27,983,079	Fixed		Q4 2009	Plan to refinance loans in mid- to late 2009 in order to avoid defeasance costs on secured loans
		187,862,452
2009 Maturities - Unconsolidated Entities
3/02/09	Parkside Town Commons	22,000,000	LIBOR + 85		Q1 2009	KRG's share is currently 40%- discussing construction loan sydication with multiple lenders
6/01/09	The Centre	2,166,875	Fixed			KRG's share is 60% - Plan to refinance in Q2 2009
		24,166,875
	Total Debt Maturing	$229,978,0971

____________________
1	Total debt maturing in 2008 and 2009 exluces scheduled monthly principle payments for the remainder of 2008 and 2009.

 

p.17 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

REFINANCING EVENTS SUBSEQUENT TO SEPTEMBER 30, 2008

Events Subsequent to September 30, 2008:
Loans Refinanced/Extended		Balance at September 30, 2008		New Rate
	Estero Town Center	$16,038,904		LIBOR + 155
	Tarpon Springs Plaza	19,878,305		LIBOR + 155
	Rivers Edge	16,600,000		LIBOR + 125
	Bridgewater Marketplace	8,347,801		LIBOR + 185
	Gateway Shopping Center	17,948,984		LIBOR + 190
		78,813,994
Loans Committed
	Bayport Commons	20,981,016		LIBOR + 275
	Mini-perm loan on unencumbered asset (Glendale)	22,412,770	1	LIBOR + 275
		43,393,786
Total Committed and Closed		122,207,780
Remaining Debt Maturing in 2009		$107,770,317

____________________
1	Represents the sum of the outstanding balances on the Naperville Marketplace, Traders Point II and Red Bank Commons loans above.

 

p.18 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

JOINT VENTURE SUMMARY - UNCONSOLIDATED PROPERTIES

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

Property	Percentage Owned by the Company
The Centre – Operating Property	60%
Spring Mill Medical – Operating Property	50%
Parkside Town Commons - Development Property1	40%

____________________
1	The Company's 40% interest in Parkside Town Commons will change to 20% at the time of construction financing.

 

p.19 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

CONDENSED COMBINED BALANCE SHEETSOF UNCONSOLIDATED PROPERTIES

(The Centre, Spring Mill Medical, and Parkside Town Commons)

(Unaudited)

	September 30, 2008			December 31, 2007
Assets:
Investment properties, at cost:
Land	$	2,463,098		$	2,552,075
Buildings and improvements		14,685,163			14,613,333
Furniture, equipment and other		10,581			10,581
Construction in progress		56,525,664			50,329,585
		73,684,506			67,505,574
Less: accumulated depreciation		(4,070,115	)		(3,719,540	)
		69,614,391			63,786,034
Cash and cash equivalents		348,869			817,417
Tenant receivables, including accrued straight-line rent		375,573			260,242
Escrow deposits		436,680			324,542
Deferred costs, net		536,711			582,172
Prepaid and other assets		551			32,037
Total Assets	$	71,312,775		$	65,802,444
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness	$	70,318,202		$	65,388,351
Accounts payable and accrued expenses		1,783,288			1,744,214
Total Liabilities		72,101,490			67,132,565
Accumulated deficit		(788,715	)		(1,330,121	)
Total Liabilities and Accumulated Deficit	$	71,312,775		$	65,802,444

 

p.20 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

CONDENSED COMBINED STATEMENTS OF OPERATIONSOF UNCONSOLIDATED PROPERTIES

(The Centre, Spring Mill Medical, and Parkside Town Commons)

(Unaudited)

	Three Months Ended September 30						Nine Month Ended September 30
	2008			2007			2008			2007
Revenue:
Minimum rent	$	593,227		$	614,628		$	1,820,342		$	1,841,727
Tenant reimbursements		341,602			356,245			960,794			868,914
Other property related revenue		—			1,750			—			15,001
Total revenue		934,829			972,623			2,781,136			2,725,642
Expenses:
Property operating		260,395			243,846			783,180			686,921
Real estate taxes		114,994			140,577			268,566			276,674
Depreciation and amortization and other		124,473			171,871			397,566			409,029
Total expenses		499,862			556,294			1,449,312			1,372,624
Operating income		434,967			416,329			1,331,824			1,353,018
Interest expense		(262,424	)		(267,198	)		(786,740	)		(797,271	)
Net income	$	172,543		$	149,131		$	545,084		$	555,747
Company’s share of unconsolidated net operating income	$	300,005		$	297,998		$	930,592		$	948,863
Company’s share of unconsolidated interest expense	$	137,693		$	140,449		$	413,081		$	419,475

 

p.21 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

TOP 10 RETAIL TENANTS BY GROSS LEASABLE AREA (GLA)

As of September 30, 2008

This table includes the following:

• Operating retail properties;

• Operating commercial properties; and

• Development property tenants open for business or ground lease tenants who commenced paying rent as of September 30, 2008

Tenant	Number of Locations	Total GLA	Number of Leases	Company Owned GLA2	Number of Anchor Owned Locations	Anchor Owned GLA3
Lowe's Home Improvement1	9	1,247,630	3	128,997	6	1,118,633
Target	6	665,774	0	0	6	665,774
Wal-Mart	4	618,161	1	103,161	3	515,000
Federated Department Stores	1	237,455	1	237,455	0	0
Publix	5	234,246	5	234,246	0	0
PetSmart	6	147,069	6	147,069	0	0
Home Depot	1	140,000	0	0	1	140,000
Bed Bath & Beyond	5	134,298	5	134,298	0	0
Office Depot	5	129,099	5	129,099	0	0
Dick's Sporting Goods	2	126,672	2	126,672	0	0
	44	3,680,404	28	1,240,997	16	2,439,407

____________________
1	The Company has entered into two ground leases with Lowe’s Home Improvement for a total of 328,000 square feet, which is included in Anchor Owned GLA.
2	Excludes 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.22 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

TOP 25 TENANTS BY ANNUALIZED BASE RENT^1,2

As of September 30, 2008

This table includes the following:

• Operating retail properties;

• Operating commercial properties; and

• Development property tenants open for business or ground lease tenants who commenced paying rent as of September 30, 2008

Tenant	Type of Property	Number of Locations	Leased GLA/NRA5	% of Owned GLA/NRA of the Portfolio	Annualized Base Rent1,2		Annualized Base Rent per Sq. Ft.		% of Total Portfolio Annualized Base Rent
Lowe's Home Improvement4	Retail	3	128,997	2.1%	$	2,564,000	$	5.61	3.4%
PetSmart	Retail	6	147,069	2.4%		2,045,138		13.91	2.7%
Publix	Retail	5	234,246	3.9%		1,837,588		7.84	2.4%
Marsh Supermarkets	Retail	2	124,902	2.1%		1,633,958		13.08	2.1%
State of Indiana	Commercial	3	210,393	3.5%		1,614,442		7.67	2.1%
Bed Bath & Beyond	Retail	5	134,298	2.2%		1,581,884		11.78	2.1%
Circuit City	Retail	3	99,352	1.6%		1,566,365		15.77	2.0%
Office Depot	Retail	5	129,099	2.1%		1,353,866		10.49	1.8%
Indiana Supreme Court	Commercial	1	75,488	1.3%		1,339,164		17.74	1.8%
Staples	Retail	4	89,797	1.5%		1,220,849		13.60	1.6%
Dick's Sporting Goods	Retail	2	126,672	2.1%		1,220,004		9.63	1.6%
Ross Dress For Less	Retail	4	117,761	2.0%		1,210,784		10.28	1.6%
H-E-B Grocery	Retail	1	105,000	1.7%		1,155,000		11.00	1.5%
Best Buy	Retail	2	75,045	1.2%		934,493		12.45	1.2%
Kmart	Retail	1	110,875	1.8%		850,379		7.67	1.1%
University Medical Diagnostic Associates3	Commercial	1	32,256	0.5%		844,402		26.18	1.1%
Michaels	Retail	3	68,989	1.1%		823,544		11.94	1.1%
T.J. Maxx	Retail	3	88,550	1.5%		805,312		9.09	1.1%
Kerasotes Theatres4	Retail	2	43,050	0.7%		776,496		8.92	1.0%
Dominick's	Retail	1	65,977	1.1%		775,230		11.75	1.0%
City Securities Corporation	Commercial	1	38,810	0.6%		771,155		19.87	1.0%
A & P Grocery	Retail	1	58,732	1.0%		763,516		13.00	1.0%
Old Navy	Retail	3	64,868	1.1%		748,693		11.54	1.0%
Caputo's Fresh Markets	Retail	1	65,636	1.1%		669,492		10.20	0.9%
Indiana University Health Care Assoc. 3	Commercial	1	31,175	0.5%		622,202		19.96	0.8%
TOTAL			2,467,037	40.9%	$	29,727,954	$	10.47	38.9%

____________________
1	Annualized base rent represents the monthly contractual rent for September 2008 for each applicable tenant multiplied by 12.
2	Excludes tenants at development properties that are designated as 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.

 

p.23 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

LEASE EXPIRATIONS – OPERATING PORTFOLIO¹

As of September 30, 2008

This table includes the following:

• Operating retail properties;

• Operating commercial properties; and

• Development property tenants open for business or ground lease tenants who commenced paying rent as of September 30, 2008

	Number of Expiring Leases1,2	Expiring GLA/NRA3	% of Total GLA/NRA Expiring	Expiring Annualized Base Rent4		% of Total Annualized Base Rent	Expiring Annualized Base Rent per Sq. Ft.		Expiring Ground Lease Revenue
2008	40	123,861	2.2%	$	1,439,730	2.0%	$	11.62	$	800,000
2009	70	224,626	4.1%		3,853,589	5.3%		17.16		0
2010	93	522,431	9.4%		6,747,835	9.4%		12.92		0
2011	95	652,350	11.8%		6,517,341	9.0%		9.99		0
2012	109	453,680	8.2%		7,552,178	10.5%		16.65		85,000
2013	71	504,348	9.1%		6,135,122	8.5%		12.16		0
2014	41	474,643	8.6%		5,660,986	7.8%		11.93		427,900
2015	39	510,408	9.2%		6,326,885	8.8%		12.40		181,504
2016	28	272,319	4.9%		3,465,098	4.8%		12.72		0
2017	26	421,344	7.6%		6,435,695	8.9%		15.27		435,296
Beyond	53	1,376,443	24.9%		18,049,868	25.0%		13.11		2,371,321
TOTAL	665	5,536,453	100.0%	$	72,184,327	100.0%	$	13.04	$	4,301,021

____________________
1	Excludes tenants at development properties that are designated as Build-to-Suits for sale.
2	Lease expiration table reflects rents in place as of September 30, 2008, and does not include option periods; 2008 expirations include 22 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 September 2008 for each applicable tenant multiplied by 12. Excludes ground lease revenue.

 

p.24 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

LEASE EXPIRATIONS – RETAIL ANCHOR TENANTS¹

As of September 30, 2008

This table includes the following:

• Operating retail properties; and

• Development property tenants open for business or ground lease tenants who commenced paying rent as of September 30, 2008

	Number of Expiring Leases1,2	Expiring GLA/NRA3	% of Total GLA/NRA Expiring	Expiring Annualized Base Rent4		% of Total Annualized Base Rent	Expiring Annualized Base Rent per Sq. Ft.		Expiring Ground Lease Revenue
2008	2	33,551	0.6%	$	151,672	0.2%	$	4.52	$	800,000
2009	3	58,710	1.1%		519,894	0.7%		8.86		0
2010	14	332,886	6.0%		3,185,500	4.4%		9.57		0
2011	7	433,404	7.8%		2,182,015	3.0%		5.03		0
2012	8	179,119	3.2%		1,678,862	2.3%		9.37		0
2013	3	222,521	4.0%		993,053	1.4%		4.46		0
2014	9	235,634	4.3%		2,394,767	3.3%		10.16		0
2015	11	377,371	6.8%		3,585,414	5.0%		9.50		0
2016	6	185,178	3.4%		1,679,616	2.3%		9.07		0
2017	11	277,102	5.0%		3,383,722	4.7%		12.21		0
Beyond	32	1,278,745	23.1%		15,776,106	21.9%		12.34		990,000
TOTAL	106	3,614,221	65.3%	$	35,530,621	49.2%	$	9.83	$	1,790,000

____________________
1	Retail anchor tenants are defined as tenants that occupy 10,000 square feet or more. Excludes tenants at development properties that are designated as Build-to-Suits for sale.
2	Lease expiration table reflects rents in place as of September 30, 2008, and does not include option periods; 2008 expirations include one month-to-month tenant. This column also excludes ground leases.
3	Expiring GLA excludes square footage for non-owned ground lease structures on land we own and ground leased to tenants.
4	Annualized base rent represents the monthly contractual rent for September 2008 for each applicable property multiplied by 12. Excludes ground lease revenue.

 

p.25 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

LEASE EXPIRATIONS – RETAIL SHOPS

As of September 30, 2008

This table includes the following:

• Operating retail properties; and

• Development property tenants open for business as of September 30, 2008

	Number of Expiring Leases1	Expiring GLA/NRA1,2	% of Total GLA/NRA Expiring	Expiring Annualized Base Rent3		% of Total Annualized Base Rent	Expiring Annualized Base Rent per Sq. Ft.		Expiring Ground Lease Revenue
2008	36	75,141	1.4%	$	1,089,452	1.5%	$	14.50	$	0
2009	67	165,916	3.0%		3,333,694	4.6%		20.09		0
2010	77	180,447	3.3%		3,380,455	4.7%		18.73		0
2011	87	201,908	3.7%		4,045,670	5.6%		20.04		0
2012	99	237,509	4.3%		5,277,849	7.3%		22.22		85,000
2013	64	153,473	2.8%		3,543,998	4.9%		23.09		0
2014	30	85,199	1.5%		1,855,664	2.6%		21.78		427,900
2015	27	82,071	1.5%		1,850,530	2.6%		22.55		181,504
2016	22	87,141	1.6%		1,785,482	2.5%		20.49		0
2017	13	36,498	0.7%		868,407	1.2%		23.79		435,296
Beyond	20	66,523	1.2%		1,651,560	2.3%		24.83		1,381,321
TOTAL	542	1,371,826	24.8%	$	28,682,761	39.7%	$	20.91	$	2,511,021

____________________
1	Lease expiration table reflects rents in place as of September 30, 2008, and does not include option periods; 2008 expirations include 20 month-to-month tenants. This column also excludes ground leases.
2	Expiring GLA excludes estimated square footage to non-owned structures on land we own and ground leased to tenants.
3	Annualized base rent represents the monthly contractual rent for September 2008 for each applicable property multiplied by 12. Excludes ground lease revenue.

 

p.26 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

LEASE EXPIRATIONS – COMMERCIAL TENANTS

As of September 30, 2008

	Number of Expiring Leases1	Expiring NLA1	% of Total NRA Expiring	Expiring Annualized Base Rent2		% of Total Annualized Base Rent	Expiring Annualized Base Rent per Sq. Ft.
2008	2	15,169	0.3%	$	198,605	0.3%	$	13.09
2009	0	0	0.0%		0	0.0%		0.00
2010	2	9,098	0.2%		181,880	0.3%		19.99
2011	1	17,038	0.3%		289,656	0.4%		17.00
2012	2	37,052	0.7%		595,467	0.8%		16.07
2013	4	128,354	2.3%		1,598,071	2.2%		12.45
2014	2	153,810	2.8%		1,410,555	2.0%		9.17
2015	1	50,966	0.9%		890,942	1.2%		17.48
2016	0	0	0.0%		0	0.0%		0.00
2017	2	107,744	2.0%		2,183,566	3.0%		20.27
Beyond	1	31,175	0.6%		622,202	0.9%		19.96
TOTAL	17	550,406	9.9%	$	7,970,943	11.0%	$	14.48

____________________
1	Lease expiration table reflects rents in place as of September 30, 2008, and does not include option periods. This column also excludes ground leases. 2008 expirations includes 1 month-to-month tenant.
2	Annualized base rent represents the monthly contractual rent for September 2008 for each applicable property multiplied by 12.

 

p.27 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

SUMMARY RETAIL PORTFOLIO STATISTICS INCLUDING JOINT VENTURE PROPERTIES

	September 30, 2008	June 30, 2008	March 31, 2008	December 31, 2007	September 30, 2007	June 30, 2007
Company Owned GLA – Operating Retail1	5,059,842	4,669,276	4,842,214	4,732,924	4,664,954	4,601,877
Total GLA – Operating Retail1	8,479,344	7,448,227	7,613,265	7,392,845	7,131,075	6,982,698
Projected Company Owned GLA Under Development or Redevelopment2	948,245	1,308,760	1,146,127	990,376	1,056,615	1,122,990
Projected Total GLA Under Development or Redevelopment2	1,253,888	2,349,865	2,152,027	1,791,096	2,041,135	2,227,810
Number of Operating Retail Properties	52	51	52	50	50	48
Number of Retail Properties Under Development or Redevelopment	10	11	10	11	11	12
Percentage Leased – Operating Retail	91.9%	93.0%	92.8%	94.8%	94.8%	95.7%
Annualized Base Rent & Ground Lease Revenue – Retail Properties3	$63,719,164	$60,689,289	$61,766,441	$61,768,402	$60,285,156	$59,569,596

____________________
1	Company 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.
3	Annualized Base Rent represents the monthly contractual rent for September 2008, multiplied by 12.

 

p.28 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

SUMMARY COMMERCIAL PORTFOLIO STATISTICS

Retail Portfolio	September 30, 2008	June 30, 2008	March 31, 2008	December 31, 2007	September 30, 2007	June 30, 2007
Company Owned Net Rentable Area (NRA)1	562,652	562,652	562,652	562,652	562,652	562,652
Number of Operating Commercial Properties	5	5	5	5	5	5
Percentage Leased – Operating Commercial Properties	97.8%	97.8%	98.4%	93.0%	92.5%	92.5%
Annualized Base Rent – Commercial Properties2,3	$7,970,942	$7,906,781	$8,073,623	$7,625,342	$7,445,336	$7,435,326

____________________
1	Company Owned NRA does not include square footage of Union Station Parking Garage, a detached parking garage supporting the 30 South property that includes approximately 850 parking spaces. It is managed by Denison Parking, a third party.
2	Annualized Base Rent does not include income attributable to the Union Station Parking Garage.
3	Annualized Base Rent includes $890,942 from KRG and subsidiaries as of September 30, 2008.

 

p.29 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

CURRENT DEVELOPMENT PIPELINE

Current Development Projects	Company Ownership %6	MSA	Actual/ Projected Opening Date1	Projected Owned GLA2	Projected Total GLA3	Percent of Owned GLA Occupied7	Percent of Owned GLA Pre-Leased/ Committed5	Total Estimated Project Cost4		Cost Incurred as of September 30, 20084		Major Tenants and Non-owned Anchors
Cobblestone Plaza, FL	50%	Ft. Lauderdale	Q1 2009	157,957	163,600	0.0%	79.7%	$	47,000	$	36,780	Whole Foods Market, Staples, Party City
South Elgin Commons, IL – I (Build to Suit for Sale)	100%	Chicago	Q2 2009	45,000	45,000	0.0%	100.0%		9,200		4,697	LA Fitness
Beacon Hill, IN – II8	50%	Crown Point	Q4 2007	19,160	19,160	33.4%	33.4%		5,000		4,374	Strack & Van Til (non-owned), Walgreens (non-owned)
Spring Mill Medical II, IN	50%	Indianapolis	Q4 2008	41,000	41,000	0.0%	100.0%		8,500		8,109	Medical Practice Groups
Eddy Street Commons, IN – I9	100%	South Bend	Q4 2009	165,000	465,000	0.0%	61.2%		35,000		3,383	Follett Bookstore, Other Retail, Office
Total Current Development Projects				428,117	733,760	1.5%	74.6%	$	104,700	$	57,343

____________________
1	Opening Date is defined as the first date a tenant is open for business or a ground lease payment is made. Stabilization (i.e., 85% occupied) typically occurs within six to twelve months after the opening date.
2	Projected Owned GLA represents gross leasable area we project we will own. It excludes square footage that we project will be attributable to non-owned outlot structures on land owned by us 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 we own, and non-owned anchor space that currently exists or is under construction.
4	Dollars in thousands. Reflects both the Company’s and partners’ share of costs, except Eddy Street Commons (see Note 12).
5	Excludes outlot land parcels owned by the Company and ground leased to tenants. Includes leases under negotiation for approximately 74,842 square feet for which the Company has signed non-binding letters of intent.
6	The Company owns the following development properties through joint ventures: Beacon Hill (preferred return, then 50%); Gateway Shopping Center (preferred return, then 50% until internal rate of return threshold is reached and then 25%); and Bayport Commons (preferred return, then 60%).
7	Includes tenants that have taken possession of their space or have begun paying rent.
8	Beacon Hill Phase I was transferred to the operating portfolio in the third quarter of 2007 at a total cost of $12 million.
9	The Company is the master developer for this project. The total estimated cost of Phase I is approximately $70 million; however the Company’s share of Phase I estimated project cost is approximately $35 million and 165,000 square feet, the remaining $35 million of the project cost is attributable to the apartments which will be funded by a third party. The Company has received a construction loan commitment for this phase of the project and anticipates closing the loan in November.

 

p.30 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

CURRENT REDEVELOPMENT PROJECTS

Redevelopment Projects	MSA	Existing Owned GLA	Projected Owned GLA1	Projected Total GLA2	Total Estimated Project Cost3		Cost Incurred as of September 30, 20083		Major Tenants and Non-owned Anchors
Shops at Eagle Creek, FL4,5	Naples	72,271	72,271	72,271	$	3,500	$	3,342	Staples
Rivers Edge, IN4	Indianapolis	110,875	110,875	110,875		5,000		39	Pending
Bolton Plaza, FL4	Jacksonville	172,938	172,938	172,938		6,200		183	Pending
Courthouse Shadows, FL	Naples	134,867	134,867	134,867		2,500		248	Publix, Office Max
Four Corner Square, WA	Seattle	29,177	29,177	29,177		500		25	Johnson Hardware Store, Walgreens
Total Redevelopment Projects		520,128	520,128	520,128	$	17,700	$	3,837

____________________
1	Projected Owned GLA represents gross leasable area we project we will own. It excludes square footage that we project will be attributable to non-owned outlot structures on land owned by us and expected to be ground leased to tenants. It also excludes non-owned anchor space.
2	Projected Total GLA includes Projected Owned GLA, projected square footage attributable to non-owned outlot structures on land that we own, and non-owned anchor space that currently exists or is under construction.
3	Dollars in thousands. Reflects both the Company’s and partners’ share of costs.
4	This property has been removed from the operating portfolio statistics during its redevelopment.
5	The Company is in the process of re-tenanting the anchor space at this property. The Company has an executed lease with Staples for approximately one-half of the former grocery space.

 

p.31 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

VISIBLE SHADOW PIPELINE

Project	MSA	KRG Ownership %2	Estimated Start Date	Estimated Total GLA1	Total Estimated Project Cost1,5		Cost Incurred as of September 30, 20085		Potential Tenancy
Unconsolidated –
Parkside Town Commons, NC3	Raleigh	40%	TBD	1,500,000	$	148,000	$	56,525	Frank Theatres, Discount Department Store, Jr. Boxes, Restaurants
KRG Current Share					$	59,200	$	22,610
Consolidated –
Delray Marketplace, FL	Delray Beach	50%	TBD	318,000	$	100,000	$	38,623	Publix, Frank Theatres, Jr. Boxes, Shops, Restaurants
Maple Valley, WA4	Seattle	100%	TBD	126,823		32,000		9,130	Hardware Store, Shops, Drug Store
Broadstone Station, NC	Raleigh	100%	TBD	345,000		25,600		15,992	Super Wal-Mart (non-owned), Shops, Pad Sales, Jr. Boxes
South Elgin Commons, IL - II	Chicago	100%	TBD	263,000		17,000		6,223	Jr. Boxes, Super Target (non-owned)
New Hill Place, NC - I	Raleigh	100%	TBD	364,000		60,000		12,323	Target, Frank Theatres
Total Consolidated				1,416,823	$	234,600	$	82,291

____________________
1	Total Estimated Cost and Estimated Total GLA based on preliminary site plans and includes non-owned anchor space that exists or is currently under construction.
2	The Company owns the following development properties through joint ventures: Delray Marketplace (preferred return, then 50%).
3	Parkside Town Commons is owned through a joint venture with Prudential Real Estate Investors. The Company’s interest in this joint venture is 40% as of June 30, 2008 and will be reduced to 20% upon the commencement of construction.
4	“Total Estimated Cost” includes a portion of the acquisition cost of the Four Corner Square shopping center which is a component of the Maple Valley redevelopment.
5	Dollars in thousands. Reflects both the Company’s and partners’ share of costs.

 

p.32 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

GEOGRAPHIC DIVERSIFICATION – OPERATING PORTFOLIO

As of September 30, 2008

	Number of Operating Properties1	Owned GLA/NRA2	Percent of Owned GLA/NRA	Total Number of Leases	Annualized Base Rent3		Percent of Annualized Base Rent	Annualized Base Rent per Leased Sq. Ft.
Indiana	25	2,223,042	39.6%	234	$	26,637,467	39.3%	$	12.78
•Retail	20	1,664,170	29.6%	215		18,533,720	27.5%		12.17
•Commercial	5	562,652	10.0%	17		7,970,943	11.8%		14.48
Florida	12	1,139,081	20.3%	154		14,054,058	20.9%		12.90
Texas	8	1,143,786	20.3%	82		12,093,788	18.0%		11.70
Georgia	3	300,115	5.3%	60		4,170,375	6.2%		14.77
Illinois	3	315,078	5.6%	39		3,873,682	5.8%		13.59
Washington	2	115,449	2.1%	15		2,950,897	3.3%		24.10
Ohio	1	236,230	4.2%	7		2,366,522	3.5%		10.02
New Jersey	1	115,088	2.1%	15		1,659,417	2.5%		16.07
Oregon	2	30,845	0.6%	11		462,615	0.7%		23.25
	57	5, 622,494	100.0%	615	$	67,389,088	100.0%	$	12.92

____________________
1	This table includes operating retail properties, operating commercial properties, and development properties open for business or ground lease tenants who commenced paying rent as of September 30, 2008.
2	Owned GLA/NRA represents gross leasable area or net leasable area owned by the Company. It does not include 25 parcels or outlots owned by the Company and ground leased to tenants, which contain 25 non-owned structures totaling approximately 493,653 square feet. It also excludes the square footage of Union Station Parking Garage.
3	Annualized Base Rent excludes $4,301,021 in annualized ground lease revenue attributable to parcels and outlots owned by the Company and ground leased to tenants.

 

p.33 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

OPERATING RETAIL PROPERTIES – TABLE I

As of September 30, 2008

Property1,2	State	MSA	Year Built/Renovated	Year Added to Operating Portfolio	Acquired, Redeveloped, or Developed	Total GLA2	Owned GLA2	Percentage of Owned GLA Leased3
Bayport Commons	FL	Oldsmar	2008	2008	Developed	268,556	94,756	90.8%
Circuit City Plaza	FL	Ft.Lauderdale	2004	2004	Developed	405,906	45,906	81.9%
Eagle Creek Lowe's	FL	Naples	2006	2006	Developed	165,000	—	*
Estero Town Commons	FL	Naples	2006	2007	Developed	206,600	25,600	85.2%
Indian River Square	FL	VeroBeach	1997/2004	2005	Acquired	379,246	144,246	97.6%
International Speedway Square	FL	Daytona	1999	1999	Developed	233,901	220,901	96.1%
Kings Lake Square	FL	Naples	1986	2003	Acquired	85,497	85,497	96.2%
Pine Ridge Crossing	FL	Naples	1993	2006	Acquired	258,874	105,515	97.1%
Riverchase Plaza	FL	Naples	1991/2001	2006	Acquired	78,340	78,340	98.0%
Tarpon Springs Plaza	FL	Naples	2007	2007	Developed	276,346	82,546	98.1%
Wal-Mart Plaza	FL	Gainesville	1970	2004	Acquired	177,826	177,826	98.0%
Waterford Lakes Village	FL	Orlando	1997	2004	Acquired	77,948	77,948	95.0%
Kedron Village	GA	Atlanta	2006	2006	Developed	282,125	157,408	89.6%
Publix at Acworth	GA	Atlanta	1996	2004	Acquired	69,628	69,628	98.0%
Publix Centre at Panola	GA	Atlanta	2001	2004	Acquired	73,079	73,079	100.0%
Fox Lake Crossing	IL	Chicago	2002	2005	Acquired	99,072	99,072	84.7%
Naperville Marketplace	IL	Chicago	2008	2008	Developed	169,600	83,290	83.6%
Silver Glen Crossing	IL	Chicago	2002	2004	Acquired	138,265	132,716	99.0%
50 South Morton	IN	Indianapolis	1999	1999	Developed	2,000	2,000	100.0%
54th & College	IN	Indianapolis	2008	2008	Developed	20,100	—	*
Beacon Hill -I	IN	CrownPoint,IN	2006	2007	Developed	108,661	38,161	74.4%
Boulevard Crossing	IN	Kokomo	2004	2004	Developed	213,696	123,696	96.3%
Bridgewater Marketplace I	IN	Westfield	2008	2008	Developed	50,820	26,000	17.3%
Cool Creek Commons	IN	Indianapolis	2005	2005	Developed	137,107	124,578	95.6%
Fishers Station4	IN	Indianapolis	1989	2004	Acquired	114,457	114,457	82.7%
Geist Pavilion	IN	Indianapolis	2006	2006	Developed	64,114	64,114	83.6%
Glendale Town Center	IN	Indianapolis	1958/2008	2008	Redeveloped	685,827	403,327	91.6%
Greyhound Commons	IN	Indianapolis	2005	2005	Developed	153,187	—	*
Hamilton Crossing Centre	IN	Indianapolis	1999	2004	Acquired	87,424	82,424	100.0%
Martinsville Shops	IN	Martinsville	2005	2005	Developed	10,986	10,986	100.0%
Red Bank Commons	IN	Evansville	2005	2006	Developed	324,308	34,308	69.8%
Stoney Creek Commons	IN	Indianapolis	2000	2000	Developed	189,527	49,330	100.0%
The Centre5	IN	Indianapolis	1986	1986	Developed	80,689	80,689	93.3%

____________________
*	Property consists of ground leases only and, therefore, no Owned GLA. As of September 30, 2008, the following were leased: Eagle Creek Lowe’s and 54th & College – single ground lease property; Greyhound Commons – two of four 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 September 30, 2008, except for Greyhound Commons, 54th & College, and Eagle Creek Lowe’s (see * ).
4	This property is divided into two parcels: a grocery store and small shops. The Company owns a 25% interest in the small shops parcel through 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.
5	The Company owns a 60% interest in this property through a joint venture with a third party that manages the property.
6	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.
7	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.
8	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.

 

p.34 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

OPERATING RETAIL PROPERTIES – TABLE I (CONTINUED)

Property1,2	State	MSA	Year Built/Renovated	Year Added to Operating Portfolio	Acquired, Redeveloped, or Developed	Total GLA2	Owned GLA2	Percentage of Owned GLA Leased3
The Corner Shops	IN	Indianapolis	1984/2003	1984	Developed	42,545	42,545	96.4%
Traders Point	IN	Indianapolis	2005	2005	Developed	348,835	279,558	98.2%
Traders PointII	IN	Indianapolis	2005	2005	Developed	46,600	46,600	64.9%
Whitehall Pike	IN	Bloomington	1999	1999	Developed	128,997	128,997	100.0%
Zionsville Place	IN	Indianapolis	2006	2006	Developed	12,400	12,400	90.3%
Ridge Plaza	NJ	OakRidge	2002	2003	Acquired	115,088	115,088	89.7%
Eastgate Pavilion	OH	Cincinnati	1995	2004	Acquired	236,230	236,230	100.0%
Cornelius Gateway Build-to-Suit	OR	Portland,OR	2006	2007	Developed	35,800	21,000	52.7%
Shops at Otty6	OR	Portland	2004	2004	Developed	154,845	9,845	89.6%
Burlington Coat Factory8	TX	SanAntonio	1992/2000	2000	Redeveloped	107,400	107,400	100.0%
Cedar Hill Village	TX	Dallas	2002	2004	Acquired	139,092	44,262	94.2%
Galleria Plaza7	TX	Dallas	2002	2004	Acquired	44,306	44,306	85.7%
Market Street Village	TX	Hurst	1970/2004	2005	Acquired	163,625	156,625	99.2%
Plaza at Cedar Hill	TX	Dallas	2000	2004	Acquired	299,847	299,847	79.0%
Plaza Volente	TX	Austin	2004	2005	Acquired	160,333	156,333	93.4%
Preston Commons	TX	Dallas	2002	2002	Developed	142,539	27,539	92.5%
Sunland Towne Centre	TX	ElPaso	1996	2004	Acquired	312,450	307,474	89.0%
50th & 12th	WA	Seattle	2004	2004	Developed	14,500	14,500	100.0%
Gateway Shopping Center	WA	Seattle	2008	2008	Developed	285,200	100,949	76.2%
					TOTAL	8,479,344	5,059,842	91.9%

See prior page for footnote disclosure.

 

p.35 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

OPERATING RETAIL PROPERTIES – TABLE II

As of September 30, 2008

Property	State	MSA	Annualized Base Rent Revenue	Annualized Ground Lease Revenue	Annualized Total Retail Revenue1	Percentage of Annualized Total Retail Revenue	Base Rent Per Leased Owned GLA2	Major Tenants and Non-Owned Anchors3
Bayport Commons	FL	Oldsmar	1,563,448	—	1,563,448	2.45%	18.18	PetSmart, Best Buy, Michaels
Circuit City Plaza	FL	Ft.Lauderdale	713,202	—	713,202	1.12%	18.97	Circuit City, Lowe's Home Improvement (non-owned), Wal-Mart (non-owned)
Eagle Creek Lowe's	FL	Naples	—	800,000	800,000	1.26%	-	Lowe's Home Improvement
Estero Town Commons	FL	Naples	636,774	871,000	1,507,774	2.37%	29.19	Lowe's Home Improvement, Ruby Tuesday, Mattress Giant
Indian River Square	FL	VeroBeach	1,434,753	—	1,434,753	2.25%	10.19	Bealls, Target (non-owned), Lowe’s Home Improvement (non-owned), Office Depot
International Speedway Square4	FL	Daytona	2,356,188	362,900	2,719,088	4.27%	11.10	Bed Bath & Beyond, Circuit City, Stein Mart, Old Navy, Staples, Michaels
Kings Lake Square	FL	Naples	1,118,218	—	1,118,218	1.75%	13.60	Publix, Retro Fitness
Pine Ridge Crossing	FL	Naples	1,548,970	—	1,548,970	2.43%	15.11	Publix, Target (non-owned), Bealls (non-owned)
Riverchase Plaza	FL	Naples	1,098,010	—	1,098,010	1.72%	14.30	Publix
Tarpon Springs Plaza	FL	Naples	1,818,628	128,820	1,947,448	3.06%	22.47	Cost Plus, A.C. Moore, Staples
Wal-Mart Plaza	FL	Gainesville	933,097	—	933,097	1.46%	5.35	Books-A-Million, Save-A-Lot, Wal-Mart
Waterford Lakes Village	FL	Orlando	832,770	—	832,770	1.31%	11.25	Winn-Dixie
Kedron Village	GA	Atlanta	2,493,361	—	2,493,361	3.91%	17.68	Target (non-owned), Bed Bath & Beyond, Ross Dress for Less, PETCO
Publix at Acworth	GA	Atlanta	809,765	—	809,765	1.27%	11.87	Publix
Publix Centre at Panola	GA	Atlanta	867,248	—	867,248	1.36%	11.87	Publix
Fox Lake Crossing	IL	Chicago	1,175,111	—	1,175,111	1.84%	14.01	Dominick's
Naperville Marketplace	IL	Chicago	857,046	—	857,046	1.35%	12.30	T.J. Maxx, PetSmart
Silver Glen Crossing	IL	Chicago	1,841,524	85,000	1,926,524	3.02%	14.01	Caputo’s Fresh Markets
50 South Morton	IN	Indianapolis	114,000	—	114,000	0.18%	57.00
54th & College	IN	Indianapolis	—	260,000	260,000	0.41%	—	The Fresh Market (non-owned)
Beacon Hill - I	IN	CrownPoint	478,830	60,000	538,830	0.85%	16.86	Strack & VanTil (non-owned)
Boulevard Crossing	IN	Kokomo	1,651,736	—	1,651,736	2.59%	13.87	PETCO, T.J. Maxx, Kohl's (non-owned)
Bridgewater Marketplace I	IN	Westfield	91,989	—	91,989	0.14%	20.40
Cool Creek Commons	IN	Indianapolis	1,997,199	—	1,997,199	3.13%	16.77	The Fresh Market, Stein Mart, Cardinal Fitness
Fishers Station	IN	Indianapolis	1,124,180	—	1,124,180	1.76%	11.88	Marsh Supermarkets
Geist Pavilion	IN	Indianapolis	896,539	—	896,539	1.41%	16.73	Party Tree, Ace Hardware
Glendale Town Center	IN	Indianapolis	2,035,043	168,996	2,204,039	3.46%	5.51	Federated Department Stores, Inc., Kerasotes Theatres, Staples, Indianapolis Library, Lowe's Home Improvement (non-owned), Target (non-owned)
Greyhound Commons	IN	Indianapolis	—	202,500	202,500	0.32%	—	Lowe's Home Improvement (non-owned)
Hamilton Crossing Centre	IN	Indianapolis	1,442,978	71,500	1,514,478	2.38%	17.51	Office Depot
Martinsville Shops	IN	Martinsville	160,818	—	160,818	0.25%	14.64	Walgreens (non-owned)
Red Bank Commons	IN	Evansville	358,792	—	358,792	0.56%	14.98	Wal-Mart (non-owned), Home Depot (non-owned)
Stoney Creek Commons	IN	Indianapolis	464,755	—	464,755	0.73%	9.42	Lowe's Home Improvement (non-owned), HH Gregg, Office Depot
The Centre4	IN	Indianapolis	1,116,105	—	1,116,105	1.75%	14.82	Osco Drug
The Corner Shops	IN	Indianapolis	600,383	—	600,383	0.94%	14.63	Hancock Fabrics

____________________
1	Annualized Base Rent represents the contractual rent for September 2008 for each applicable property, multiplied by 12. This table does not include Annualized Base Rent from development property tenants open for business as of September 30, 2008.
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 June 2008, the Company signed a lease with Bed Bath & Beyond at Sunland Towne Centre.

 

p.36 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

OPERATING RETAIL PROPERTIES – TABLE II (CONTINUED)

Property	State	MSA	Annualized Base Rent Revenue		Annualized Ground Lease Revenue		Annualized Total Retail Revenue1		Percentage of Annualized Total Retail Revenue	Base Rent Per Leased Owned GLA2		Major Tenants and Non-Owned Anchors3
Traders Point	IN	Indianapolis	$	3,954,735	$	603,996	$	4,558,731	7.15%	$	14.40	Dick's Sporting Goods, Kerasotes Theatres, Marsh Supermarkets, Bed Bath & Beyond, Michaels, Old Navy, PetSmart
Traders Point II	IN	Indianapolis	797,618		—		797,618		1.25%	26.36
Whitehall Pike	IN	Bloomington	1,014,000		—		1,014,000		1.59%	7.86		Lowe's Home Improvement
Zionsville Place	IN	Indianapolis	234,020		—		234,020		0.37%	20.89
Ridge Plaza	NJ	Oak Ridge	1,659,417		—		1,659,417		2.60%	16.07		A&P Grocery, CVS
Eastgate Pavilion	OH	Cincinnati	2,366,522		—		2,366,522		3.71%	10.02		Best Buy, Dick's Sporting Goods, Value City Furniture
Cornelius Gateway	OR	Portland	212,950		—		212,950		0.33%	19.23		FedEx/Kinkos
Shops at Otty	OR	Portland	249,665		136,300		385,965		0.61%	28.29		Wal-Mart (non-owned)
Burlington Coat Factory	TX	San Antonio	510,150		—		510,150		0.80%	4.75		Burlington Coat Factory
Cedar Hill Village	TX	Dallas	686,247		—		686,247		1.08%	16.45		24 Hour Fitness, JC Penney (non-owned)
Galleria Plaza	TX	Dallas	538,930		—		538,930		0.85%	14.19		Shoe Pavilion
Market Street Village	TX	Hurst	2,016,058		115,700		2,131,758		3.35%	12.97		Circuit City, Jo-Ann Fabric, Ross Dress For Less
Plaza at Cedar Hill	TX	Dallas	2,850,335		—		2,850,335		4.47%	12.03		Hobby Lobby, Office Max, Ross Dress For Less, Old Navy, Marshalls
Plaza Volente	TX	Austin	2,224,500		100,000		2,324,500		3.65%	15.24		H-E-B Grocery
Preston Commons	TX	Dallas	639,892		—		639,892		1.00%	25.12		Lowe's Home Improvement (non-owned)
Sunland Towne Centre5	TX	El Paso	2,627,676		104,809		2,732,485		4.29%	9.60		HMY RoomStore, Kmart, Bed Bath & Beyond
50th & 12th	WA	Seattle	475,000		—		475,000		0.75%	32.76		Walgreens
Gateway Shopping Center	WA	Seattle	1,728,968		229,500		1,958,468		3.07%	22.47		PetSmart, Ross Dress for Less, Rite Aid
		TOTAL	$	59,418,143	$	4,301,021	$	63,719,164	100.00%	$	12.78

See prior page for footnote disclosure.

 

p.37 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

OPERATING COMMERCIAL PROPERTIES

As of September 30, 2008

Property	MSA	Year Built/ Renovated	Acquired, Redeveloped or Developed	Owned NRA	Percentage Of Owned NRA Leased	Annualized Base Rent1		Percentage of Annualized Commercial Base Rent	Base Rent Per Leased Sq. Ft.		Major Tenants
Indiana
30 South4	Indianapolis	1905/2002	Redeveloped	298,346	95.9%	$	5,051,703	63.4%	$	16.93	Indiana Supreme Court, City Securities, Kite Realty Group
Pen Products	Indianapolis	2003	Acquired	85,875	100.0%		813,236	10.2%		9.47	Indiana Dept. of Administration
Spring Mill Medical2	Indianapolis	1998/2002	Redeveloped	63,431	100.0%		1,466,603	18.4%		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 Management Agreement
Indiana State Motorpool	Indianapolis	2004	Developed	115,000	100.0%		639,400	8.0%		5.56	Indiana Dept. of Administration
			TOTAL	562,652	97.8%	$	7,970,942	100.0%	$	14.37

____________________
1	Annualized Base Rent represents the monthly contractual rent for September 2008 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	Garage managed by third party.
4	Annualized Base Rent includes $890,942 from the Company and subsidiaries as of September 30, 2008.

 

p.38 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08

RETAIL OPERATING PORTFOLIO – TENANT BREAKDOWN¹

As of September 30, 2008

	Owned Gross Leasable Area				Percent of Owned GLA Leased			Annualized Base Rent1				Annualized Base Rent per Leased Sq. Ft.
Property	State	Anchors	Shops	Total	Anchors	Shops	Total	Anchors	Shops	Ground Lease	Total	Anchors	Shops	Total
Bayport Commons	FL	71,563	23,193	94,756	100.0%	62.4%	90.8%	1,107,187	456,261	—	1,563,448	15.48	31.51	18.18
Circuit City Plaza	FL	33,014	12,892	45,906	100.0%	35.5%	81.9%	594,252	118,950	—	713,202	18.00	26.00	18.97
Eagle Creek Lowe's	FL	—	—	—	0.0%	0.0%	0.0%	—	—	800,000	800,000	—	—	—
Estero Town Commons	FL	—	25,600	25,600	0.0%	85.2%	85.2%	—	636,774	871,000	1,507,774	—	29.19	29.19
Indian River Square	FL	116,342	27,904	144,246	100.0%	87.5%	97.6%	973,085	461,668	—	1,434,753	8.36	18.92	10.19
International Speedway Square	FL	200,401	20,500	220,901	100.0%	57.4%	96.1%	2,130,281	225,906	362,900	2,719,088	10.63	19.19	11.10
Kings Lake Square	FL	49,805	35,692	85,497	100.0%	90.8%	96.2%	358,890	759,328	—	1,118,218	7.21	23.43	13.60
Pine Ridge Crossing	FL	65,999	39,516	105,515	100.0%	92.4%	97.1%	627,628	921,342	—	1,548,970	9.51	25.25	15.11
Riverchase Plaza	FL	48,890	29,450	78,340	100.0%	94.7%	98.0%	386,231	711,779	—	1,098,010	7.90	25.52	14.30
Tarpon Springs Plaza	FL	60,151	22,395	82,546	100.0%	92.9%	98.1%	1,144,008	674,620	128,820	1,947,448	19.02	32.44	22.47
Wal-Mart Plaza	FL	138,323	39,503	177,826	100.0%	91.0%	98.0%	554,049	379,049	—	933,097	4.01	10.54	5.35
Waterford Lakes Village	FL	51,703	26,245	77,948	100.0%	85.1%	95.0%	408,452	424,318	—	832,770	7.90	18.99	11.25
Kedron Village	GA	68,845	88,563	157,408	100.0%	81.5%	89.6%	849,648	1,643,713	—	2,493,361	12.34	22.78	17.68
Publix at Acworth	GA	37,888	31,740	69,628	100.0%	95.6%	98.0%	337,203	472,562	—	809,765	8.90	15.58	11.87
Publix Centre at Panola	GA	51,674	21,405	73,079	100.0%	100.0%	100.0%	413,392	453,856	—	867,248	8.00	21.20	11.87
Fox Lake Crossing	IL	65,977	33,095	99,072	100.0%	54.1%	84.7%	775,230	399,882	—	1,175,111	11.75	22.32	14.01
Naperville Marketplace	IL	61,683	21,607	83,290	100.0%	36.9%	83.6%	702,879	154,167	—	857,046	11.40	19.35	12.30
Silver Glen Crossing	IL	78,675	54,041	132,716	100.0%	97.6%	99.0%	694,492	1,147,032	85,000	1,926,524	8.83	21.74	14.01
50 South Morton	IN	—	2,000	2,000	0.0%	100.0%	100.0%	—	114,000	—	114,000	—	57.00	57.00
54th & College	IN	—	—	—	0.0%	0.0%	0.0%	—	—	260,000	260,000	—	—	—
Beacon Hill - I	IN	—	44,381	44,381	0.0%	74.0%	74.0%	—	478,830	60,000	538,830	—	16.86	16.86
Boulevard Crossing	IN	73,440	50,256	123,696	100.0%	90.9%	96.3%	838,460	813,276	—	1,651,736	11.42	17.81	13.87
Bridgewater Marketplace I	IN	—	26,000	26,000	0.0%	17.3%	17.3%	—	91,989	—	91,989	—	20.40	20.40
Cool Creek Commons	IN	63,600	60,978	124,578	100.0%	91.1%	95.6%	635,700	1,361,499	—	1,997,199	10.00	24.52	16.77
Fishers Station	IN	57,000	57,457	114,457	100.0%	65.5%	82.7%	575,000	549,180	—	1,124,180	10.09	14.58	11.88
Geist Pavilion	IN	27,955	36,159	64,114	100.0%	70.9%	83.6%	379,814	516,725	—	896,539	13.59	20.15	16.73
Glendale Town Center	IN	329,588	73,739	403,327	100.0%	53.8%	91.6%	1,207,305	827,738	168,996	2,204,039	3.66	20.88	5.51
Greyhound Commons	IN	—	—	—	0.0%	0.0%	0.0%	—	—	202,500	202,500	—	—	—
Hamilton Crossing Centre	IN	30,722	51,702	82,424	100.0%	100.0%	100.0%	345,623	1,097,355	71,500	1,514,478	11.25	21.22	17.51
Martinsville Shops	IN	—	10,986	10,986	0.0%	100.0%	100.0%	—	160,818	—	160,818	—	14.64	14.64
Red Bank Commons	IN	—	34,308	34,308	0.0%	69.8%	69.8%	—	358,792	—	358,792	—	14.98	14.98
Stoney Creek Commons	IN	49,330	—	49,330	100.0%	0.0%	100.0%	464,755	—	—	464,755	9.42	—	9.42
The Centre	IN	18,720	61,969	80,689	100.0%	91.3%	93.3%	170,352	945,753	—	1,116,105	9.10	16.72	14.82
The Corner Shops	IN	12,200	30,345	42,545	100.0%	95.0%	96.4%	79,296	521,087	—	600,383	6.50	18.08	14.63
Traders Point	IN	238,721	40,837	279,558	100.0%	87.8%	98.2%	3,127,248	827,487	603,996	4,558,731	13.10	23.09	14.40
Traders Point II	IN	—	46,600	46,600	0.0%	64.9%	64.9%	—	797,618	—	797,618	—	26.36	26.36
Whitehall Pike	IN	128,997	—	128,997	100.0%	0.0%	100.0%	1,014,000	—	—	1,014,000	7.86	—	7.86
Zionsville Place	IN	—	12,400	12,400	0.0%	90.3%	90.3%	—	234,020	—	234,020	—	20.89	20.89
Ridge Plaza	NJ	69,612	45,476	115,088	100.0%	74.0%	89.7%	997,762	661,654	—	1,659,417	14.33	19.66	16.07
Eastgate Pavilion	OH	231,730	4,500	236,230	100.0%	100.0%	100.0%	2,233,771	132,750	—	2,366,522	9.64	29.50	10.02
Cornelius Gateway Build-to-Suit	OR	—	21,000	21,000	0.0%	52.7%	52.7%	—	212,950	—	212,950	—	19.23	19.23
Shops at Otty	OR	—	9,845	9,845	0.0%	89.6%	89.6%	—	249,665	136,300	385,965	—	28.29	28.29
Burlington Coat Factory	TX	107,400	—	107,400	100.0%	0.0%	100.0%	510,150	—	—	510,150	4.75	—	4.75
Cedar Hill Village	TX	32,231	12,031	44,262	100.0%	78.8%	94.2%	483,465	202,782	—	686,247	15.00	21.39	16.45
Galleria Plaza	TX	31,396	12,910	44,306	100.0%	51.0%	85.7%	361,054	177,876	—	538,930	11.50	27.00	14.19
Market Street Village	TX	136,746	19,879	156,625	100.0%	94.0%	99.2%	1,570,081	445,977	115,700	2,131,758	11.48	23.88	12.97
Plaza at Cedar Hill	TX	227,106	72,741	299,847	74.9%	92.0%	79.0%	1,505,129	1,345,206	—	2,850,335	8.85	20.10	12.03
Plaza Volente	TX	105,000	51,333	156,333	100.0%	79.9%	93.4%	1,155,000	1,069,500	100,000	2,324,500	11.00	26.08	15.24
Preston Commons	TX	—	27,539	27,539	0.0%	92.5%	92.5%	-	639,892	—	639,892	—	25.12	25.12
Sunland Towne Centre	TX	277,131	30,343	307,474	88.9%	90.1%	89.0%	2,159,495	468,181	104,809	2,732,485	8.77	17.12	9.60
50th & 12th	WA	14,500	—	14,500	100.0%	0.0%	100.0%	475,000	—	—	475,000	32.76	—	32.76
Gateway Shopping Center	WA	64,637	36,312	100,949	100.0%	33.9%	76.2%	1,337,747	391,221	229,500	1,958,468	20.70	31.81	22.47
TOTAL		3,528,695	1,537,367	5,066,062	97.5%	79.0%	91.9%	$33,683,114	$25,735,028	$4,301,022	$63,719,164	$9.792	$21.28	$12.78

1	This table does not include annualized base rent from development property tenants open for business as of September 30, 2008.
2	Reflects the transition of Glendale Town Center back into the operating portfolio in the third quarter of 2008.

 

p.39 Kite Realty Group Trust Supplemental Financial and Operating Statistics – 9/30/08