10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to

Commission File Number:	001-32268	Kite Realty Group Trust
Commission File Number:	333-202666-01	Kite Realty Group, L.P.
KITE REALTY GROUP TRUST
KITE REALTY GROUP, L.P.
(Exact name of registrant as specified in its charter)

Maryland	Kite Realty Group Trust	11-3715772
Delaware	Kite Realty Group, L.P.	20-1453863
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

30 S. Meridian Street, Suite 1100, Indianapolis, Indiana 46204

(Address of principal executive offices) (Zip Code)

(317) 577-5600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	KRG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Kite Realty Group Trust Yes ☒ No  o Kite Realty Group, L.P. Yes ☒ No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Kite Realty Group Trust Yes ☒ No  o Kite Realty Group, L.P. Yes ☒ No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Kite Realty Group Trust:

Large accelerated filer	x	Accelerated filer	o	Non-accelerated filer	o	Smaller reporting company	☐
						Emerging growth company	☐

Kite Realty Group, L.P.:

Large accelerated filer	o	Accelerated filer	o	Non-accelerated filer	x	Smaller reporting company	☐
						Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Kite Realty Group Trust o Kite Realty Group, L.P. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Kite Realty Group Trust Yes ☐ No x Kite Realty Group, L.P. Yes ☐ No x

The number of Common Shares outstanding as of May 4, 2022 was 219,040,481 ($0.01 par value).

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2022 of Kite Realty Group Trust, Kite Realty Group, L.P. and its subsidiaries. Unless stated otherwise or the context otherwise requires, references to “Kite Realty Group Trust” or the “Parent Company” mean Kite Realty Group Trust, and references to the “Operating Partnership” mean Kite Realty Group, L.P. and its consolidated subsidiaries. The terms “Company,” “we,” “us,” and “our” refer to the Parent Company and the Operating Partnership, collectively, and those entities owned or controlled by the Parent Company and/or the Operating Partnership.

The Operating Partnership is engaged in the ownership, operation, acquisition, development and redevelopment of high-quality, open-air shopping centers and mixed-use assets in select markets in the United States, and the Parent Company conducts substantially all of its activities through the Operating Partnership and its wholly owned subsidiaries. The Parent Company is the sole general partner of the Operating Partnership and as of March 31, 2022 owned approximately 98.9% of the common partnership interests in the Operating Partnership (“General Partner Units”). The remaining 1.1% of the common partnership interests (“Limited Partner Units” and, together with the General Partner Units, the “Common Units”) are owned by the limited partners.

We believe combining the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into this single report benefits investors by:

•enhancing investors’ understanding of the Parent Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

•eliminating duplicative disclosure and providing a more streamlined and readable presentation of information as a substantial portion of the Company’s disclosure applies to both the Parent Company and the Operating Partnership; and

•creating time and cost efficiencies through the preparation of one combined report instead of two separate reports.

We believe it is important to understand the few differences between the Parent Company and the Operating Partnership in the context of how we operate as an interrelated consolidated company. The Parent Company has no material assets or liabilities other than its investment in the Operating Partnership. The Parent Company issues public equity from time to time but does not have any indebtedness as all debt is incurred by the Operating Partnership. In addition, the Parent Company currently does not nor does it intend to guarantee any debt of the Operating Partnership. The Operating Partnership has numerous wholly owned subsidiaries, and it also owns interests in certain joint ventures. These subsidiaries and joint ventures own and operate retail shopping centers and other real estate assets. The Operating Partnership is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for General Partner Units, the Operating Partnership generates the capital required by the business through its operations, its incurrence of indebtedness and the issuance of Limited Partner Units to third parties.

Shareholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of the Parent Company and those of the Operating Partnership. In order to highlight this and other differences between the Parent Company and the Operating Partnership, there are separate sections in this report, as applicable, that separately discuss the Parent Company and the Operating Partnership, including separate financial statements and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure of the Parent Company and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the collective Company.

KITE REALTY GROUP TRUST AND KITE REALTY GROUP, L.P. AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Kite Realty Group Trust:
	Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021	4
	Consolidated Statements of Operations and Comprehensive Income for the Three Months Ended March 31, 2022 and 2021	5
	Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31, 2022 and 2021	6
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	7
	Kite Realty Group, L.P. and subsidiaries:
	Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021	8
	Consolidated Statements of Operations and Comprehensive Income for the Three Months Ended March 31, 2022 and 2021	9
	Consolidated Statements of Partners’ Equity for the Three Months Ended March 31, 2022 and 2021	10
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	11
	Kite Realty Group Trust and Kite Realty Group, L.P. and subsidiaries:
	Notes to Consolidated Financial Statements	12
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	41
Item 4.	Controls and Procedures	42
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	43
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3.	Defaults upon Senior Securities	44
Item 4.	Mine Safety Disclosures	44
Item 5.	Other Information	44
Item 6.	Exhibits	45
SIGNATURES		46

3

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

KITE REALTY GROUP TRUST

Consolidated Balance Sheets

(Unaudited)

($ in thousands, except share and per share data)

	March 31, 2022		December 31, 2021
Assets:
Investment properties at cost	$	7,627,581	$	7,592,348
Less: accumulated depreciation	(950,737)		(884,809)
Net investment properties	6,676,844		6,707,539
Cash and cash equivalents	74,345		93,241
Tenant and other receivables, including accrued straight-line rent of $32,125 and $28,071, respectively	69,135		68,444
Restricted cash and escrow deposits	7,845		7,122
Deferred costs, net	512,411		541,518
Short-term deposits	125,000		125,000
Prepaid and other assets	96,281		84,826
Investments in unconsolidated subsidiaries	11,833		11,885
Total assets	$	7,573,694	$	7,639,575
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness, net	$	3,179,118	$	3,150,808
Accounts payable and accrued expenses	124,193		184,982
Deferred revenue and other liabilities	306,268		321,419
Total liabilities	3,609,579		3,657,209
Commitments and contingencies
Limited Partners’ interests in Operating Partnership and other	60,376		55,173
Equity:
Common shares, $0.01 par value, 490,000,000 shares authorized, 219,042,903 and 218,949,569 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	2,190		2,189
Additional paid-in capital	4,894,897		4,898,673
Accumulated other comprehensive income (loss)	22,811		(15,902)
Accumulated deficit	(1,021,317)		(962,913)
Total shareholders’ equity	3,898,581		3,922,047
Noncontrolling interests	5,158		5,146
Total equity	3,903,739		3,927,193
Total liabilities and shareholders’ equity	$	7,573,694	$	7,639,575

The accompanying notes are an integral part of these consolidated financial statements.

4

KITE REALTY GROUP TRUST

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

($ in thousands, except share and per share data)

	Three Months Ended March 31,
	2022		2021
Revenue:
Rental income	$	189,858	$	67,890
Other property-related revenue	2,224		1,051
Fee income	2,309		434
Total revenue	194,391		69,375
Expenses:
Property operating	25,928		10,269
Real estate taxes	26,859		9,400
General, administrative and other	13,309		7,276
Merger and acquisition costs	925		—
Depreciation and amortization	121,504		30,634
Total expenses	188,525		57,579
Gain on sales of operating properties, net	3,168		26,207
Operating income	9,034		38,003
Other (expense) income:
Interest expense	(25,514)		(12,242)
Income tax benefit of taxable REIT subsidiary	71		118
Equity in loss of unconsolidated subsidiaries	(314)		(318)
Other expense, net	(103)		(206)
Net (loss) income	(16,826)		25,355
Net loss (income) attributable to noncontrolling interests	22		(778)
Net (loss) income attributable to common shareholders	$	(16,804)	$	24,577
Net (loss) income per common share – basic & diluted	$	(0.08)	$	0.29
Weighted average common shares outstanding – basic	218,981,168		84,336,577
Weighted average common shares outstanding – diluted	218,981,168		84,446,989
Dividends declared per common share	$	0.19	$	0.15
Net (loss) income	$	(16,826)	$	25,355
Change in fair value of derivatives	38,938		6,733
Total comprehensive income	22,112		32,088
Comprehensive income attributable to noncontrolling interests	(203)		(974)
Comprehensive income attributable to Kite Realty Group Trust	$	21,909	$	31,114

The accompanying notes are an integral part of these consolidated financial statements.

5

KITE REALTY GROUP TRUST

Consolidated Statements of Shareholders’ Equity

(Unaudited)

(in thousands, except share data)

	Common Shares			Additional Paid-in Capital		Accumulated Other Comprehensive (Loss) Income		Accumulated Deficit		Total
	Shares	Amount
Balance at December 31, 2021	218,949,569	$	2,189	$	4,898,673	$	(15,902)	$	(962,913)	$	3,922,047
Stock compensation activity	93,334	1		1,821		—		—		1,822
Other comprehensive income attributable to Kite Realty Group Trust	—	—		—		38,713		—		38,713
Distributions declared to common shareholders	—	—		—		—		(41,600)		(41,600)
Net loss attributable to common shareholders	—	—		—		—		(16,804)		(16,804)
Adjustment to redeemable noncontrolling interests	—	—		(5,597)		—		—		(5,597)
Balance at March 31, 2022	219,042,903	$	2,190	$	4,894,897	$	22,811	$	(1,021,317)	$	3,898,581

Balance at December 31, 2020	84,187,999	$	842	$	2,085,003	$	(30,885)	$	(824,306)	$	1,230,654
Stock compensation activity	182,486	2		1,464		—		—		1,466
Other comprehensive income attributable to Kite Realty Group Trust	—	—		—		6,537		—		6,537
Distributions declared to common shareholders	—	—		—		—		(12,992)		(12,992)
Net income attributable to common shareholders	—	—		—		—		24,577		24,577
Purchase of capped calls	—	—		(9,800)		—		—		(9,800)
Exchange of redeemable noncontrolling interests for common shares	115,697	1		2,061		—		—		2,062
Adjustment to redeemable noncontrolling interests	—	—		(10,633)		—		—		(10,633)
Balance at March 31, 2021	84,486,182	$	845	$	2,068,095	$	(24,348)	$	(812,721)	$	1,231,871

The accompanying notes are an integral part of these consolidated financial statements.

6

KITE REALTY GROUP TRUST

Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	Three Months Ended March 31,
	2022		2021
Cash flows from operating activities:
Net (loss) income	$	(16,826)	$	25,355
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	123,289		31,212
Gain on sales of operating properties, net	(3,168)		(26,207)
Straight-line rent	(4,031)		12
Compensation expense for equity awards	2,624		1,702
Amortization of debt fair value adjustments	(3,446)		(111)
Amortization of in-place lease liabilities	(583)		(479)
Changes in assets and liabilities:
Tenant receivables	2,446		3,806
Deferred costs and other assets	95		(3,178)
Accounts payable, accrued expenses, deferred revenue and other liabilities	(50,817)		(807)
Net cash provided by operating activities	49,583		31,305
Cash flows from investing activities:
Acquisition of interests in properties	(44,262)		—
Capital expenditures	(23,752)		(7,864)
Net proceeds from sales of land	—		39,933
Net proceeds from sales of operating properties	6,904		2,484
Small business loan repayments	226		212
Change in construction payables	(1,299)		(883)
Net cash (used in) provided by investing activities	(62,183)		33,882
Cash flows from financing activities:
Proceeds from issuance of common shares, net	14		17
Repurchases of common shares upon the vesting of restricted shares	(939)		(452)
Purchase of capped calls	—		(9,800)
Debt and equity issuance costs	(263)		(4,937)
Loan proceeds	80,000		175,000
Loan payments	(42,201)		(25,568)
Distributions paid – common shareholders	(41,600)		(12,992)
Distributions paid – redeemable noncontrolling interests	(584)		(511)
Net cash (used in) provided by financing activities	(5,573)		120,757
Net change in cash, cash equivalents and restricted cash	(18,173)		185,944
Cash, cash equivalents and restricted cash, beginning of period	100,363		46,586
Cash, cash equivalents and restricted cash, end of period	$	82,190	$	232,530
Non-cash investing and financing activities
Exchange of redeemable noncontrolling interests for common shares	$	—	$	2,062

 The accompanying notes are an integral part of these consolidated financial statements.

7

KITE REALTY GROUP, L.P. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

(in thousands, except unit data)

	March 31, 2022		December 31, 2021
Assets:
Investment properties at cost	$	7,627,581	$	7,592,348
Less: accumulated depreciation	(950,737)		(884,809)
Net investment properties	6,676,844		6,707,539
Cash and cash equivalents	74,345		93,241
Tenant and other receivables, including accrued straight-line rent of $32,125 and $28,071, respectively	69,135		68,444
Restricted cash and escrow deposits	7,845		7,122
Deferred costs, net	512,411		541,518
Short-term deposits	125,000		125,000
Prepaid and other assets	96,281		84,826
Investments in unconsolidated subsidiaries	11,833		11,885
Total assets	$	7,573,694	$	7,639,575
Liabilities and Equity:
Mortgage and other indebtedness, net	$	3,179,118	$	3,150,808
Accounts payable and accrued expenses	124,193		184,982
Deferred revenue and other liabilities	306,268		321,419
Total liabilities	3,609,579		3,657,209
Commitments and contingencies
Limited Partners’ interests in Operating Partnership and other	60,376		55,173
Partners’ Equity:
Common equity, 219,042,903 and 218,949,569 units issued and outstanding at March 31, 2022 and December 31, 2021, respectively	3,875,770		3,937,949
Accumulated other comprehensive income (loss)	22,811		(15,902)
Total Partners’ equity	3,898,581		3,922,047
Noncontrolling interests	5,158		5,146
Total equity	3,903,739		3,927,193
Total liabilities and equity	$	7,573,694	$	7,639,575

The accompanying notes are an integral part of these consolidated financial statements.

8

KITE REALTY GROUP, L.P. AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

(in thousands, except unit and per unit data)

	Three Months Ended March 31,
	2022		2021
Revenue:
Rental income	$	189,858	$	67,890
Other property-related revenue	2,224		1,051
Fee income	2,309		434
Total revenue	194,391		69,375
Expenses:
Property operating	25,928		10,269
Real estate taxes	26,859		9,400
General, administrative and other	13,309		7,276
Merger and acquisition costs	925		—
Depreciation and amortization	121,504		30,634
Total expenses	188,525		57,579
Gain on sales of operating properties, net	3,168		26,207
Operating income	9,034		38,003
Other (expense) income:
Interest expense	(25,514)		(12,242)
Income tax benefit of taxable REIT subsidiary	71		118
Equity in loss of unconsolidated subsidiaries	(314)		(318)
Other expense, net	(103)		(206)
Net (loss) income	(16,826)		25,355
Net income attributable to noncontrolling interests	(144)		(132)
Net (loss) income attributable to common unitholders	$	(16,970)	$	25,223
Allocation of net (loss) income:
Limited Partners	$	(166)	$	646
Parent Company	(16,804)		24,577
	$	(16,970)	$	25,223
Net (loss) income per common unit – basic & diluted	$	(0.08)	$	0.29
Weighted average common units outstanding – basic	221,428,198		86,862,153
Weighted average common units outstanding – diluted	221,428,198		86,972,566
Distributions declared per common unit	$	0.19	$	0.15
Net (loss) income	$	(16,826)	$	25,355
Change in fair value of derivatives	38,938		6,733
Total comprehensive income	22,112		32,088
Comprehensive income attributable to noncontrolling interests	(144)		(132)
Comprehensive income attributable to common unitholders	$	21,968	$	31,956

The accompanying notes are an integral part of these consolidated financial statements.

9

KITE REALTY GROUP, L.P. AND SUBSIDIARIES

Consolidated Statements of Partners’ Equity

(Unaudited)

(in thousands)

	General Partner				Total
	Common Equity		Accumulated Other Comprehensive (Loss) Income
Balance at December 31, 2021	$	3,937,949	$	(15,902)	$	3,922,047
Stock compensation activity	1,822		—		1,822
Other comprehensive income attributable to Parent Company	—		38,713		38,713
Distributions declared to Parent Company	(41,600)		—		(41,600)
Net loss attributable to Parent Company	(16,804)		—		(16,804)
Adjustment to redeemable noncontrolling interests	(5,597)		—		(5,597)
Balance at March 31, 2022	$	3,875,770	$	22,811	$	3,898,581

Balance at December 31, 2020	$	1,261,539	$	(30,885)	$	1,230,654
Stock compensation activity	1,466		—		1,466
Other comprehensive income attributable to Parent Company	—		6,537		6,537
Distributions declared to Parent Company	(12,992)		—		(12,992)
Net income attributable to Parent Company	24,577		—		24,577
Purchase of capped calls	(9,800)		—		(9,800)
Conversion of Limited Partner Units to shares of the Parent Company	2,062		—		2,062
Adjustment to redeemable noncontrolling interests	(10,633)		—		(10,633)
Balance at March 31, 2021	$	1,256,219	$	(24,348)	$	1,231,871

The accompanying notes are an integral part of these consolidated financial statements.

10

KITE REALTY GROUP, L.P. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	Three Months Ended March 31,
	2022		2021
Cash flows from operating activities:
Net (loss) income	$	(16,826)	$	25,355
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	123,289		31,212
Gain on sales of operating properties, net	(3,168)		(26,207)
Straight-line rent	(4,031)		12
Compensation expense for equity awards	2,624		1,702
Amortization of debt fair value adjustments	(3,446)		(111)
Amortization of in-place lease liabilities	(583)		(479)
Changes in assets and liabilities:
Tenant receivables	2,446		3,806
Deferred costs and other assets	95		(3,178)
Accounts payable, accrued expenses, deferred revenue and other liabilities	(50,817)		(807)
Net cash provided by operating activities	49,583		31,305
Cash flows from investing activities:
Acquisition of interests in properties	(44,262)		—
Capital expenditures	(23,752)		(7,864)
Net proceeds from sales of land	—		39,933
Net proceeds from sales of operating properties	6,904		2,484
Small business loan repayments	226		212
Change in construction payables	(1,299)		(883)
Net cash (used in) provided by investing activities	(62,183)		33,882
Cash flows from financing activities:
Contributions from the General Partner	14		17
Repurchases of common shares upon the vesting of restricted shares	(939)		(452)
Purchase of capped calls	—		(9,800)
Debt and equity issuance costs	(263)		(4,937)
Loan proceeds	80,000		175,000
Loan payments	(42,201)		(25,568)
Distributions paid – common unitholders	(41,600)		(12,992)
Distributions paid – redeemable noncontrolling interests	(584)		(511)
Net cash (used in) provided by financing activities	(5,573)		120,757
Net change in cash, cash equivalents and restricted cash	(18,173)		185,944
Cash, cash equivalents and restricted cash, beginning of period	100,363		46,586
Cash, cash equivalents and restricted cash, end of period	$	82,190	$	232,530
Non-cash investing and financing activities
Conversion of Limited Partner Units to shares of the Parent Company	$	—	$	2,062

The accompanying notes are an integral part of these consolidated financial statements.

11

KITE REALTY GROUP TRUST AND KITE REALTY GROUP, L.P. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

March 31, 2022

(Unaudited)

($ in thousands, except share, per share, unit and per unit amounts and where indicated in millions or billions)

NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION

Kite Realty Group Trust (the “Parent Company”), through its majority-owned subsidiary, Kite Realty Group, L.P. (the “Operating Partnership”), owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of high-quality, open-air shopping centers and mixed-use assets in select markets in the United States. The terms “Company,” “we,” “us,” and “our” refer to the Parent Company and the Operating Partnership, collectively, and those entities owned or controlled by the Parent Company and/or the Operating Partnership.

The Operating Partnership was formed on August 16, 2004, when the Parent Company contributed properties and the net proceeds from an initial public offering of shares of its common stock to the Operating Partnership. The Parent Company was organized in Maryland in 2004 to succeed in the development, acquisition, construction and real estate businesses of its predecessor. We believe the Company qualifies as a real estate investment trust (“REIT”) under provisions of the Internal Revenue Code of 1986, as amended.

The Parent Company is the sole general partner of the Operating Partnership, and as of March 31, 2022 owned approximately 98.9% of the common partnership interests in the Operating Partnership (“General Partner Units”). The remaining 1.1% of the common partnership interests (“Limited Partner Units” and, together with the General Partner Units, the “Common Units”) were owned by the limited partners. As the sole general partner of the Operating Partnership, the Parent Company has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Operating Partnership. The Parent Company and the Operating Partnership are operated as one enterprise. The management of the Parent Company consists of the same members as the management of the Operating Partnership. As the sole general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have any significant assets other than its investment in the Operating Partnership.

The accompanying unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) may have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the presentation not misleading. The unaudited financial statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 include all adjustments, consisting of normal recurring adjustments, necessary in the opinion of management to present fairly the financial information set forth therein. The consolidated financial statements in this Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the combined Annual Report on Form 10-K of the Parent Company and the Operating Partnership for the year ended December 31, 2021.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reported period. Actual results could differ from these estimates. The results of operations for the interim periods are not necessarily indicative of the results that may be expected on an annual basis.

On October 22, 2021, we completed a merger with Retail Properties of America, Inc. (“RPAI”) in accordance with the Agreement and Plan of Merger dated July 18, 2021 (the “Merger Agreement”), by and among the Company, its wholly owned subsidiary KRG Oak, LLC (“Merger Sub”) and RPAI, pursuant to which RPAI merged with and into Merger Sub (the “Merger”). Immediately following the closing of the Merger, Merger Sub merged with and into the Operating Partnership so that all of the assets and liabilities of the Company continue to be held at or below the Operating Partnership level. The transaction value was approximately $4.7 billion, including the assumption of approximately $1.8 billion of debt. We acquired 100 operating retail properties and five active development projects through the Merger along with multiple parcels of entitled land for future value creation.

12

Pursuant to the terms of the Merger Agreement, each outstanding share of RPAI common stock converted into the right to receive 0.623 common shares of the Company plus cash in lieu of fractional Company shares. The aggregate value of the Merger consideration paid or payable to former holders of RPAI common stock was approximately $2.8 billion, excluding the value of RPAI restricted stock units that vested at closing and certain restricted share awards assumed by the Company at closing. In connection with the Merger, the Operating Partnership issued an equivalent amount of General Partner Units to the Parent Company.

As of March 31, 2022, we owned interests in 181 operating retail properties totaling approximately 28.8 million square feet and one office property with 0.3 million square feet. Of the 181 operating retail properties, 11 contain an office component. We also owned seven development projects under construction as of this date. Of the 181 operating retail properties, 178 are consolidated in these financial statements and the remaining three are accounted for under the equity method.

NOTE 2. CONSOLIDATION, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS

Components of Investment Properties

The following table summarizes the composition of the Company’s investment properties as of March 31, 2022 and December 31, 2021:

	Balance as of
($ in thousands)	March 31, 2022		December 31, 2021
Land, buildings and improvements	$	7,581,145	$	7,543,376
Furniture, equipment and other	7,674		7,612
Construction in progress	38,762		41,360
Investment properties, at cost	$	7,627,581	$	7,592,348

Components of Rental Income including Allowance for Uncollectible Accounts

Rental income related to the Company’s operating leases is comprised of the following for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
Fixed contractual lease payments – operating leases	$	148,790	$	54,803
Variable lease payments – operating leases	37,025		13,929
Bad debt reserve	(571)		(1,309)
Straight-line rent adjustments	4,093		98
Straight-line rent reserve for uncollectibility	(62)		(110)
Amortization of in-place lease liabilities, net	583		479
Rental income	$	189,858	$	67,890

The Company makes estimates as to the collectability of its accounts receivable. In making these estimates, the Company reviews a variety of qualitative and quantitative data and considers such facts as the credit quality of our customer, historical write-off experience and current economic trends, to make a subjective determination. An allowance for uncollectible accounts, including future credit losses of the accrued straight-line rent receivables, is maintained for estimated losses resulting from the inability of certain tenants to meet contractual obligations under their lease agreements.

Short-Term Deposits

As of March 31, 2022, the Company had a $125.0 million short-term deposit held in a custody account at Bank of New York Mellon to fund 2022 debt maturities or other borrowings. The deposit balance, which approximates fair value, earned interest at a rate of the Federal Funds Rate plus 43 basis points and matured on April 7, 2022, the proceeds of which were used to repay borrowings on the Company’s revolving line of credit. Interest income on the deposit is recorded within “Other expense, net” on the accompanying consolidated statements of operations and comprehensive income.

Consolidation and Investments in Joint Ventures

The accompanying financial statements are presented on a consolidated basis and include all accounts of the Parent Company, the Operating Partnership, the taxable REIT subsidiaries (“TRSs”) of the Operating Partnership, subsidiaries of the

13

Operating Partnership that are controlled and any variable interest entities (“VIEs”) in which the Operating Partnership is the primary beneficiary. As of March 31, 2022, we owned investments in three consolidated joint ventures that were VIEs in which the partners did not have substantive participating rights and we were the primary beneficiary. As of March 31, 2022, these consolidated VIEs had mortgage debt of $28.9 million, which were secured by assets of the VIEs totaling $116.6 million. The Operating Partnership guarantees the mortgage debt of these VIEs.

The Operating Partnership is considered a VIE as the limited partners do not hold kick-out rights or substantive participating rights. The Parent Company consolidates the Operating Partnership as it is the primary beneficiary.

Income Taxes and REIT Compliance

Parent Company

The Parent Company, which is considered a corporation for U.S. federal income tax purposes, has been organized and operated, and intends to continue to operate, in a manner that will enable it to maintain its qualification as a REIT for U.S. federal income tax purposes. As a result, it generally will not be subject to U.S. federal income tax on the earnings that it distributes to the extent it distributes its “REIT taxable income” (determined before the deduction for dividends paid and excluding net capital gains) to shareholders of the Parent Company and meets certain other requirements on a recurring basis. To the extent that it satisfies this distribution requirement, but distributes less than 100% of its taxable income, it will be subject to U.S. federal corporate income tax on its undistributed REIT taxable income. REITs are subject to a number of organizational and operational requirements. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income tax on its taxable income at regular corporate rates for a period of four years following the year in which qualification is lost. We may also be subject to certain U.S. federal, state and local taxes on our income and property and to U.S. federal income and excise taxes on our undistributed taxable income even if the Parent Company does qualify as a REIT. The Operating Partnership intends to continue to make distributions to the Parent Company in amounts sufficient to assist the Parent Company in adhering to REIT requirements and maintaining its REIT status.

We have elected to treat Kite Realty Holdings, LLC as a TRS of the Operating Partnership. In addition, in connection with the Merger, we assumed RPAI’s existing TRS, IWR Protective Corporation, as a TRS of the Operating Partnership and we may elect to treat other subsidiaries as TRSs in the future. This election enables us to receive income and provide services that would otherwise be impermissible for a REIT. Deferred tax assets and liabilities are established for temporary differences between the financial reporting bases and the tax bases of assets and liabilities at the tax rates expected to be in effect when the temporary differences reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Operating Partnership

The allocated share of income and loss, other than the operations of our TRSs, is included in the income tax returns of the Operating Partnership’s partners. Accordingly, the only U.S. federal income taxes included in the accompanying consolidated financial statements are in connection with the TRSs.

Noncontrolling Interests

We report the non-redeemable noncontrolling interests in subsidiaries as equity, and the amount of consolidated net income attributable to these noncontrolling interests is set forth separately in the consolidated financial statements. The following table summarizes the non-redeemable noncontrolling interests in consolidated properties for the three months ended March 31, 2022 and 2021:

($ in thousands)	2022		2021
Noncontrolling interests balance as of January 1,	$	5,146	$	698
Net loss allocable to noncontrolling interests, excluding redeemable noncontrolling interests	12		—
Noncontrolling interests balance as of March 31,	$	5,158	$	698

Noncontrolling Interests – Joint Venture

Prior to the Merger with RPAI, RPAI entered into a joint venture related to the development, ownership and operation of the multifamily rental portion of the expansion project at One Loudoun Downtown – Pads G & H. The Company owns 90% of the joint venture.

14

As of March 31, 2022, the Company has funded $0.7 million of the partner’s development costs related to One Loudoun Downtown – Pads G & H through a loan provided by the Company to the joint venture. The loan is secured by the joint venture project, is required to be repaid subsequent to the completion of construction and stabilization of the project and is eliminated upon consolidation. Under terms defined in the joint venture agreement, after construction completion and stabilization of the development project, the Company has the ability to call, and the joint venture partner has the ability to put to the Company, subject to certain conditions, the joint venture partner’s interest in the joint venture at fair value.

The joint venture is considered a VIE primarily because the Company’s joint venture partner does not have substantive kick-out rights or substantive participating rights. The Company is considered the primary beneficiary as it has a controlling financial interest in the joint venture. As such, the Company has consolidated this joint venture and presented the joint venture partners’ interests as noncontrolling interests.

Redeemable Noncontrolling Interests – Limited Partners

Limited Partner Units are redeemable noncontrolling interests in the Operating Partnership. We classify redeemable noncontrolling interests in the Operating Partnership in the accompanying consolidated balance sheets outside of permanent equity because we may be required to pay cash to holders of Limited Partner Units upon redemption of their interests in the Operating Partnership or deliver registered shares upon their conversion. The carrying amount of the redeemable noncontrolling interests in the Operating Partnership is reflected at the greater of historical book value or redemption value with a corresponding adjustment to additional paid-in capital. As of March 31, 2022 and December 31, 2021, the redemption value of the redeemable noncontrolling interests in the Operating Partnership exceeded the historical book value, and the balances were accordingly adjusted to redemption value.

We allocate net operating results of the Operating Partnership after noncontrolling interests in the consolidated properties based on the partners’ respective weighted average ownership interest. We adjust the redeemable noncontrolling interests in the Operating Partnership at the end of each reporting period to reflect their interests in the Operating Partnership or redemption value. This adjustment is reflected in our shareholders’ and Parent Company’s equity. For the three months ended March 31, 2022 and 2021, the weighted average interests of the Parent Company and the limited partners in the Operating Partnership were as follows:

	Three Months Ended March 31,
	2022		2021
Parent Company’s weighted average interest in Operating Partnership	98.9	%	97.1	%
Limited partners’ weighted average interests in Operating Partnership	1.1	%	2.9	%

At March 31, 2022 and December 31, 2021, the Parent Company’s interest and the limited partners’ redeemable noncontrolling ownership interests in the Operating Partnership were 98.9% and 1.1%.

Concurrent with the Parent Company’s initial public offering and related formation transactions, certain individuals received Limited Partner Units of the Operating Partnership in exchange for their interests in certain properties. The limited partners have the right to redeem Limited Partner Units for cash or, at the Parent Company’s election, common shares of the Parent Company in an amount equal to the market value of an equivalent number of common shares of the Parent Company at the time of redemption. Such common shares must be registered, which is not fully in the Parent Company’s control. Therefore, the limited partners’ interest is not reflected in permanent equity. The Parent Company also has the right to redeem the Limited Partner Units directly from the limited partner in exchange for either cash in the amount specified above or a number of its common shares equal to the number of Limited Partner Units being redeemed.

There were 2,516,282 and 2,377,777 Limited Partner Units outstanding as of March 31, 2022 and December 31, 2021, respectively. The increase in Limited Partner Units outstanding from December 31, 2021 is due to non-cash compensation awards made to our executive officers in the form of Limited Partner Units.

Redeemable Noncontrolling Interests – Subsidiaries

Prior to the merger with Inland Diversified Real Estate Trust, Inc. (“Inland Diversified”) in 2014, Inland Diversified formed joint ventures with the previous owners of certain properties and issued Class B units in three joint ventures that indirectly own those properties. The Class B units related to one of these three joint ventures remain outstanding and are accounted for as noncontrolling interests in the remaining venture. The remaining Class B units will become redeemable at the respective partner’s election in October 2022 and the fulfillment of certain redemption criteria. Beginning in November 2022, the Class B units can be redeemed at the election of either our partner or us for cash or Limited Partner Units in the Operating

15

Partnership. The Class B units do not have a maturity date, and none are mandatorily redeemable unless either party has elected for the units to be redeemed. We consolidate this joint venture because we control the decision-making and our joint venture partner has limited protective rights.

We classify the redeemable noncontrolling interests related to the remaining Class B units in the accompanying consolidated balance sheets outside of permanent equity because, under certain circumstances, we may be required to pay cash to Class B unitholders in this subsidiary upon redemption of their interests. The carrying amount of these redeemable noncontrolling interests is required to be reflected at the greater of initial book value or redemption value with a corresponding adjustment to additional paid-in capital. As of March 31, 2022 and December 31, 2021, the redemption amounts of these interests did not exceed their fair value nor did they exceed the initial book value.

The redeemable noncontrolling interests in the Operating Partnership and subsidiaries for the three months ended March 31, 2022 and 2021 were as follows:

($ in thousands)	2022		2021
Redeemable noncontrolling interests balance as of January 1,	$	55,173	$	43,275
Net (loss) income allocable to redeemable noncontrolling interests	(34)		778
Distributions declared to redeemable noncontrolling interests	(584)		(511)
Other, net including adjustments to redemption value	5,821		8,463
Total limited partners’ interests in Operating Partnership and other redeemable noncontrolling interests balance as of March 31,	$	60,376	$	52,005
Limited partners’ interests in Operating Partnership	$	50,306	$	41,935
Other redeemable noncontrolling interests in certain subsidiaries	10,070		10,070
Total limited partners’ interests in Operating Partnership and other redeemable noncontrolling interests balance as of March 31,	$	60,376	$	52,005

Fair Value Measurements

We follow the framework established under Financial Accounting Standards Board (“FASB”) ASC 820, Fair Value Measurements and Disclosures, for measuring fair value of non-financial assets and liabilities that are not required or permitted to be measured at fair value on a recurring basis but only in certain circumstances, such as a business combination or upon determination of an impairment.

Assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

•Level 1 fair value inputs are quoted prices in active markets for identical instruments to which we have access.

•Level 2 fair value inputs are inputs other than quoted prices included in Level 1 that are observable for similar instruments, either directly or indirectly, and appropriately consider counterparty creditworthiness in the valuations.

•Level 3 fair value inputs reflect our best estimate of inputs and assumptions market participants would use in pricing an instrument at the measurement date. The inputs are unobservable in the market and significant to the valuation estimate.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Effects of Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. In March 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the

16

corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

NOTE 3. ACQUISITIONS

RPAI Merger

On October 22, 2021, we completed a Merger with RPAI pursuant to which RPAI merged with and into Merger Sub, with the Company continuing as the surviving public company. Immediately following the closing of the Merger, Merger Sub merged with and into the Operating Partnership so that all of the assets and liabilities of the Company continue to be held at or below the Operating Partnership level. The aggregate value of the Merger consideration paid or payable to former holders of RPAI common stock was approximately $2.8 billion, excluding the value of RPAI restricted stock units that vested at closing and certain restricted share awards assumed by the Company at closing. The total purchase price was calculated based on the closing price of the Company’s common stock on October 21, 2021, the last business day prior to the effective time of the Merger, which was $21.18 per share. At the effective time of the Merger, each share of RPAI common stock issued and outstanding immediately prior to the effective time was converted into the right to receive 0.623 newly issued Company common shares plus cash in lieu of fractional Company shares. In addition, holders of (i) options to purchase shares of RPAI common stock, (ii) certain awards of restricted shares of RPAI common stock (as agreed in accordance with the Merger Agreement), and (iii) restricted stock units representing the right to vest in and be issued shares of RPAI common stock became entitled to receive cash and/or Company common shares in accordance with the terms of the Merger Agreement. The Company assumed certain existing awards of restricted shares of RPAI common stock, each of which were converted into 0.623 awards of restricted Company common shares plus cash in lieu of fractional Company shares in accordance with the Merger Agreement. In connection with the Merger, the Operating Partnership issued an equivalent amount of General Partner Units to the Parent Company. The number of RPAI common stock outstanding as of October 21, 2021 converted to shares of the Company’s common stock was determined as follows:

RPAI common stock outstanding as of October 21, 2021	214,797,869
Exchange ratio	0.623
Company common shares issued for outstanding RPAI common stock	133,814,066
Company common shares issued for RPAI restricted stock units	1,117,399
Total Company common shares issued	134,931,465

The following table presents the purchase price and total value of equity consideration paid by the Company at the close of the Merger:

(in thousands, except share price)	Price of Company common shares		Equity Consideration Given (Company common shares issued)	Total Value of Stock Consideration(1)
As of October 21, 2021	$	21.18	134,931	$	2,847,369

(1)The total value of stock consideration is the total of the common shares issued multiplied by the closing price of the Company’s common stock on October 21, 2021 excluding the value of certain RPAI restricted stock that vested at the closing of the Merger and share awards assumed by the Company at the closing of the Merger.

As a result of the Merger, the Company acquired 100 operating retail properties and five active development projects under construction along with multiple parcels of entitled land for future value creation. During the three months ended March 31, 2022, the Company incurred $0.9 million of merger and acquisition costs consisting primarily of professional fees and technology costs, which are recorded within “Merger and acquisition costs” in the accompanying consolidated statements of operations and comprehensive income. In addition, the Company assumed approximately $1.8 billion of debt in connection with the Merger.

“Rental income” and “Net income attributable to common shareholders” in the accompanying consolidated statements of operations and comprehensive income include revenues from the RPAI portfolio of $123.6 million and net loss of $20.9 million for the three months ended March 31, 2022, which includes $92.9 million of depreciation and amortization, as a result of the Merger.

17

Purchase Price Allocation

In accordance with ASC 805-10, Business Combinations, the Company accounted for the Merger as a business combination using the acquisition method of accounting. Based on the value of the common shares issued, the total fair value of the assets acquired and liabilities assumed in the Merger was $2.8 billion as of October 22, 2021, the date of the Merger.

The Company used the following valuation methodologies, inputs and assumptions to estimate the fair value of the assets acquired and liabilities assumed:

•Investment properties: The Company estimated the fair value of the buildings on an as-if-vacant basis using either a direct capitalization method or a discounted cash flow analysis. Comparable market data, real estate tax assessments and independent appraisals were used in estimating the fair value of the land acquired. These valuation methodologies are based on Level 2 and Level 3 inputs in the fair value hierarchy, such as estimates of future income growth, capitalization rates and cash flow projections at the respective properties.

•Acquired lease intangible assets: The Company estimated the fair value of its above-market and below-market in-place leases based on the present value (using a discount rate that reflects the risk associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over the remaining non-cancelable term of the leases. Any below-market renewal options are also considered in the in-place lease values. This valuation methodology is based on Level 3 inputs in the fair value hierarchy.

•In-place lease liabilities: The Company estimated the fair value of its in-place leases using independent and internal sources, which are methods similar to those used by independent appraisers. Factors we consider in our analysis include an estimate of costs to execute similar leases including tenant improvements, leasing commissions and foregone costs and rent received during the estimated lease-up period as if the space was vacant. This valuation methodology is based on Level 3 inputs in the fair value hierarchy.

•Mortgage and other indebtedness: The Company estimated the fair value of the secured and unsecured debt assumed, including related derivative instruments, using third party and independent sources for our estimates. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining term of the loan using the interest method. This valuation methodology is based on Level 2 and Level 3 inputs in the fair value hierarchy.

The range of the most significant Level 3 assumptions utilized in determining the value of the real estate and related assets acquired through the Merger with RPAI are as follows:

	Range of Assumptions
Net rental rate per square foot – Anchors	$4.00 to $45.00
Net rental rate per square foot – Small Shops	$7.00 to $140.00
Capitalization rate	5.50% to 12.00%

18

The following table summarizes the final purchase price allocation, including the acquisition date fair value of the tangible and intangible assets acquired and liabilities assumed:

($ in thousands)	Purchase Price Allocation
Investment properties	$	4,425,254
Acquired lease intangible assets	535,465
Cash, accounts receivable and other assets	84,632
Total assets acquired	5,045,351
Mortgage and other indebtedness, net	(1,848,476)
Accounts payable, other liabilities, tenant security deposits and prepaid rent	(176,391)
In-place lease liabilities	(168,652)
Noncontrolling interests	(4,463)
Total liabilities assumed	(2,197,982)
Total purchase price	$	2,847,369

The following table details the weighted average amortization periods, in years, of the purchase price allocated to real estate and related intangible assets and liabilities acquired arising from the Merger:

	Weighted Average Amortization Period (in years)
Land	10.2
Building	18.8
Tenant improvements	6.7
In-place lease intangibles	5.5
Above-market leases	5.7
Below-market leases (including below-market option periods)	20.5
Fair market value of debt adjustments	6.8

Pro Forma Financial Information (unaudited)

The pro forma financial information set forth below is based upon the Company’s historical consolidated statements of operations for the three months ended March 31, 2021, adjusted to give effect for the properties assumed through the Merger as if they were acquired as of January 1, 2021. The pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of income would have been, nor does it purport to represent the results of income for future periods.

($ in thousands)	Three Months Ended March 31, 2021
Rental income	$	183,344
Net loss	$	(16,874)
Net loss attributable to common shareholders	$	(16,688)
Net loss attributable to common shareholders per common share:
Basic(1)	$	(0.08)
Diluted(1)	$	(0.08)

Asset Acquisitions

The Company closed on the following asset acquisition during the three months ended March 31, 2022:

Date	Property Name	Metropolitan Statistical Area (MSA)	Property Type	Square Footage	Acquisition Price
February 16, 2022	Pebble Marketplace	Las Vegas	Multi-tenant retail	85,796	$	44,100

19

The above acquisition was funded using a combination of available cash on hand and proceeds from the Company’s unsecured revolving line of credit. Substantially all of the purchase price was allocated to investment properties. The Company did not acquire any properties during the three months ended March 31, 2021.

NOTE 4. DISPOSITIONS

The Company did not sell any operating properties during the three months ended March 31, 2022. The Company sold a portion of Hamilton Crossing Centre, a redevelopment property located in the Indianapolis MSA, for a sales price of $6.9 million and a net gain of $3.2 million during the three months ended March 31, 2022.

During the three months ended March 31, 2021, the Company sold sixteen ground leases for gross proceeds of $40.0 million and a net gain of $26.2 million. A portion of the proceeds was used to pay down our unsecured revolving line of credit.

NOTE 5. DEFERRED COSTS AND INTANGIBLES, NET

Deferred costs consist primarily of acquired lease intangible assets, broker fees and capitalized internal commissions incurred in connection with lease originations. Deferred leasing costs, lease intangibles and similar costs are amortized on a straight-line basis over the terms of the related leases. As of March 31, 2022 and December 31, 2021, deferred costs consisted of the following:  

($ in thousands)	March 31, 2022		December 31, 2021
Acquired lease intangible assets	$	576,500	$	567,149
Deferred leasing costs and other	56,832		55,817
	633,332		622,966
Less: accumulated amortization	(120,921)		(81,448)
Total	$	512,411	$	541,518

 Amortization of deferred leasing costs, lease intangibles and other is included within “Depreciation and amortization” in the accompanying consolidated statements of operations and comprehensive income. The amortization of above-market lease intangibles is included as a reduction to “Rental income” in the accompanying consolidated statements of operations and comprehensive income. The amounts of such amortization included in the accompanying consolidated statements of operations are as follows:

	Three Months Ended March 31,
($ in thousands)	2022		2021
Amortization of deferred leasing costs, lease intangibles and other	$	42,829	$	2,832
Amortization of above-market lease intangibles	$	3,275	$	244

NOTE 6. DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES

Deferred revenue and other liabilities consist of the unamortized fair value of below-market lease liabilities recorded in connection with purchase accounting, retainage payables for development and redevelopment projects, tenant rent payments received in advance of the month in which they are due, and lease liabilities recorded upon adoption of ASU 2016-02, Leases (Topic 842). The amortization of below-market lease liabilities is recognized as revenue over the remaining life of the leases (including option periods for leases with below-market renewal options) through 2085. Tenant rent payments received in advance are recognized as revenue in the period to which they apply, which is typically the month following their receipt.

As of March 31, 2022 and December 31, 2021, deferred revenue, intangibles, net and other liabilities consisted of the following:

($ in thousands)	March 31, 2022		December 31, 2021
Unamortized in-place lease liabilities	$	200,950	$	210,261
Retainages payable and other	8,815		10,796
Tenant rents received in advance	26,138		30,125
Lease liabilities	70,365		70,237
Total	$	306,268	$	321,419

20

The amortization of below-market lease intangibles is included as a component of “Rental income” in the accompanying consolidated statements of operations and comprehensive income and totaled $3.9 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively.

NOTE 7. MORTGAGE AND OTHER INDEBTEDNESS

The following table summarizes the Company’s indebtedness as of March 31, 2022 and December 31, 2021:

($ in thousands)	March 31, 2022		December 31, 2021
Mortgages payable	$	350,383	$	392,590
Senior unsecured notes	1,924,635		1,924,635
Unsecured term loans	720,000		720,000
Revolving line of credit	135,000		55,000
	3,130,018		3,092,225
Unamortized discounts and premiums, net	59,360		69,425
Unamortized debt issuance costs, net	(10,260)		(10,842)
Total mortgage and other indebtedness, net	$	3,179,118	$	3,150,808

Consolidated indebtedness, including weighted average interest rates and weighted average maturities as of March 31, 2022, considering the impact of interest rate swaps, is summarized below:

($ in thousands)	Amount Outstanding		Ratio		Weighted Average Interest Rate		Weighted Average Years to Maturity
Fixed rate debt(1)	$	2,811,125	90	%	4.00	%	4.4
Variable rate debt(2)	318,893		10	%	3.11	%	4.3
Debt discounts, premiums and issuance costs, net	49,100		N/A		N/A		N/A
Total	$	3,179,118	100	%	3.90	%	4.4

(1)Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of March 31, 2022, $720.0 million in variable rate debt is hedged to a fixed rate for a weighted average of 3.0 years.

(2)Variable rate debt includes the portion of fixed rate debt that has been hedged by interest rate swaps. As of March 31, 2022, $155.0 million in fixed rate debt is hedged to a floating rate for a weighted average of 3.4 years.

Mortgages Payable 

The following table summarizes the Company’s mortgages payable:

	March 31, 2022					December 31, 2021
($ in thousands)	Balance		Weighted Average Interest Rate		Weighted Average Years to Maturity	Balance		Weighted Average Interest Rate		Weighted Average Years to Maturity
Fixed rate mortgages payable(1)	$	321,490	4.09	%	1.6	$	363,577	4.13	%	1.7
Variable rate mortgage payable(2)	28,893		2.05	%	1.3	29,013		1.70	%	0.1
Total mortgages payable	$	350,383				$	392,590

(1)The fixed rate mortgages had interest rates ranging from 3.75% to 5.73% as of March 31, 2022 and December 31, 2021.

(2)The interest rate on the variable rate mortgage is based on LIBOR plus 160 basis points. The one-month LIBOR rate was 0.45% and 0.10% as of March 31, 2022 and December 31, 2021, respectively.

Mortgages payable are secured by certain real estate and, in some cases, by guarantees from the Operating Partnership, are generally due in monthly installments of principal and interest and mature over various terms through 2032. During the three months ended March 31, 2022, we repaid a $41.2 million mortgage payable that had a fixed interest rate of 4.43% and made scheduled principal payments of $1.0 million related to amortizing loans.

21

Unsecured Notes

The following table summarizes the Company’s senior unsecured notes and exchangeable senior notes:

		March 31, 2022				December 31, 2021
($ in thousands)	Maturity Date	Balance		Interest Rate		Balance		Interest Rate
Senior notes – 4.23% due 2023	September 10, 2023	$	95,000	4.23	%	$	95,000	4.23	%
Senior notes – 4.58% due 2024(1)	June 30, 2024	149,635		4.58	%	149,635		4.58	%
Senior notes – 4.00% due 2025(2)	March 15, 2025	350,000		4.00	%	350,000		4.00	%
Senior notes – LIBOR + 3.65% due 2025(3)	September 10, 2025	80,000		4.61	%	80,000		3.86	%
Senior notes – 4.08% due 2026(1)	September 30, 2026	100,000		4.08	%	100,000		4.08	%
Senior notes – 4.00% due 2026	October 1, 2026	300,000		4.00	%	300,000		4.00	%
Senior exchangeable notes – 0.75% due 2027	April 1, 2027	175,000		0.75	%	175,000		0.75	%
Senior notes – LIBOR + 3.75% due 2027(4)	September 10, 2027	75,000		4.71	%	75,000		3.96	%
Senior notes – 4.24% due 2028(1)	December 28, 2028	100,000		4.24	%	100,000		4.24	%
Senior notes – 4.82% due 2029(1)	June 28, 2029	100,000		4.82	%	100,000		4.82	%
Senior notes – 4.75% due 2030(2)	September 15, 2030	400,000		4.75	%	400,000		4.75	%
Total senior unsecured notes		$	1,924,635			$	1,924,635

(1)Private placement notes assumed in connection with the Merger.

(2)Publicly placed notes assumed in connection with the Merger.

(3)$80,000 of 4.47% senior unsecured notes has been swapped to a variable rate of three-month LIBOR plus 3.65% through September 10, 2025.

(4)$75,000 of 4.57% senior unsecured notes has been swapped to a variable rate of three-month LIBOR plus 3.75% through September 10, 2025.

Unsecured Term Loans and Revolving Line of Credit

The following table summarizes the Company’s term loans and revolving line of credit:

		March 31, 2022				December 31, 2021
($ in thousands)	Maturity Date	Balance		Interest Rate		Balance		Interest Rate
Unsecured term loan due 2023 – fixed rate(1)(2)	November 22, 2023	$	200,000	4.10	%	$	200,000	4.10	%
Unsecured term loan due 2024 – fixed rate(1)(3)	July 17, 2024	120,000		2.88	%	120,000		2.88	%
Unsecured term loan due 2025 – fixed rate(4)(5)	October 24, 2025	250,000		5.09	%	250,000		5.09	%
Unsecured term loan due 2026 – fixed rate(1)(6)	July 17, 2026	150,000		2.97	%	150,000		2.97	%
Total unsecured term loans		$	720,000			$	720,000
Unsecured credit facility revolving line of credit – variable rate(1)(7)	January 8, 2026	$	135,000	1.55	%	$	55,000	1.20	%

(1)Unsecured term loans and revolving line of credit assumed in connection with the Merger.

(2)$200,000 of LIBOR-based variable rate debt has been swapped to a fixed rate 2.85% plus a credit spread based on a leverage grid ranging from 1.20% to 1.85% through November 22, 2023. The applicable credit spread was 1.25% as of March 31, 2022 and December 31, 2021.

(3)$120,000 of LIBOR-based variable rate debt has been swapped to a fixed rate 1.68% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through July 17, 2024. The applicable credit spread was 1.20% as of March 31, 2022 and December 31, 2021.

(4)$250,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 5.09% through October 24, 2025.

(5)The maturity date of the term loan may be extended for up to three additional periods of one year at the Operating Partnership’s option, subject to certain conditions.

(6)$150,000 of LIBOR-based variable rate debt has been swapped to a fixed rate 1.77% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through July 17, 2026. The applicable credit spread was 1.20% as of March 31, 2022 and December 31, 2021.

(7)The revolving line of credit has two six-month extension options that the Company can exercise, at its election, subject to (i) customary representations and warranties, including, but not limited to, the absence of an event of default as defined in the unsecured credit

22

agreement and (ii) payment of an extension fee equal to 0.075% of the revolving line of credit capacity. Subsequent to March 31, 2022, the $125.0 million short-term deposit was used to repay outstanding borrowings.

Unsecured Revolving Credit Facility

On October 22, 2021, in connection with the Merger, the Operating Partnership (as successor by merger to RPAI), as borrower, entered into the First Amendment (the “First Amendment”) to the Credit Agreement (as defined below) with KeyBank National Association (“KeyBank”), as administrative agent, and the lenders party thereto. The First Amendment amends the Sixth Amended and Restated Credit Agreement, dated as of July 8, 2021 (as amended, the “Credit Agreement”), among RPAI, as borrower, KeyBank, as administrative agent, and the lenders from time to time party thereto, which provides for an $850.0 million unsecured revolving credit facility (the “Revolving Facility”) with a scheduled maturity date of January 8, 2026 (which maturity date may be extended for up to two additional periods of six months at the Operating Partnership’s option, subject to certain conditions).

Under the Credit Agreement, the Operating Partnership has the option to increase the Revolving Facility to an aggregate committed amount of $1.6 billion upon the Operating Partnership’s request, subject to certain conditions, including obtaining commitments from any one or more lenders, whether or not currently party to the Credit Agreement, to provide such increased amounts.

Borrowings under the Revolving Facility bear interest at a rate per annum equal to LIBOR or the alternative base rate plus a margin based on the Operating Partnership’s leverage ratio or credit rating, respectively, plus a facility fee based on the Operating Partnership’s leverage ratio or credit rating, respectively. The Revolving Facility is currently priced on the leverage-based pricing grid. In accordance with the Credit Agreement, the credit spread set forth in the leverage grid resets quarterly based on the Company’s leverage, as calculated at the previous quarter end. The Company may irrevocably elect to convert to the ratings-based pricing grid at any time. As of March 31, 2022, making such an election would have resulted in a lower interest rate; however, the Company has not made the election to convert to the ratings-based pricing grid. The Credit Agreement includes a sustainability metric based on targeted greenhouse gas emission reductions, which results in a reduction of the otherwise applicable interest rate margin by one basis point upon achievement of targets set forth therein.

The following table summarizes the key terms of the Revolving Facility:

				Leverage-Based Pricing		Investment Grade Pricing
Credit Agreement	Maturity Date	Extension Option	Extension Fee	Credit Spread	Facility Fee	Credit Spread	Facility Fee
$850,000 unsecured revolving line of credit	1/8/2026	2 six-month	0.075%	1.05%–1.50%	0.15%–0.30%	0.725%–1.40%	0.125%–0.30%

The Operating Partnership’s ability to borrow under the Credit Agreement is subject to ongoing compliance by the Operating Partnership and its subsidiaries with various restrictive covenants, including with respect to liens, transactions with affiliates, dividends, mergers and asset sales. In addition, the Credit Agreement requires that the Operating Partnership satisfy certain financial covenants, including (i) a maximum leverage ratio; (ii) a minimum fixed charge coverage ratio; (iii) a maximum secured indebtedness ratio; (iv) a maximum unsecured leverage ratio; and (v) a minimum unencumbered interest coverage ratio. As of March 31, 2022, we were in compliance with all such covenants.

As of March 31, 2022, we had letters of credit outstanding which totaled $1.5 million, against which no amounts were advanced as of March 31, 2022.

Unsecured Term Loans

On October 22, 2021, in connection with the Merger, the Operating Partnership (as successor by merger to RPAI) assumed all of RPAI’s outstanding $470.0 million aggregate principal of unsecured term loans (“Unsecured Term Loans”). The Unsecured Term Loans are currently priced on a leverage-based pricing grid. In accordance with the respective term loan agreements, the credit spread set forth in the leverage grid resets quarterly based on the Company’s leverage, as calculated at the previous quarter end. The Company may irrevocably elect to convert to a ratings-based pricing grid at any time. As of March 31, 2022, the Company has not made the election to convert to a ratings-based pricing grid.

23

The following table summarizes the key terms of the Unsecured Term Loans assumed:

Unsecured Term Loans Assumed	Maturity Date	Leverage-Based Pricing Credit Spread	Investment Grade Pricing Credit Spread
$200,000 unsecured term loan due 2023	11/22/2023	1.20% – 1.85%	0.85% – 1.65%
$120,000 unsecured term loan due 2024	7/17/2024	1.20% – 1.70%	0.80% – 1.65%
$150,000 unsecured term loan due 2026	7/17/2026	1.20% – 1.70%	0.75% – 1.60%

Under the agreement related to the $120.0 million and $150.0 million term loans, the Operating Partnership has the option to increase each of the term loans to $250.0 million upon the Operating Partnership’s request, subject to certain conditions, including obtaining commitments from any one or more lenders, whether or not currently party to the term loan agreement, to provide such increased amounts. In addition, under the agreement related to the $200.0 million term loan, the Operating Partnership has the option to increase the term loan to $300.0 million upon the Operating Partnership’s request, subject to certain conditions, including obtaining commitments from any one or more lenders, whether or not currently party to the term loan agreement, to provide such increased amounts.

The agreements related to the Unsecured Term Loans assumed in the Merger contain representations, financial and other affirmative and negative covenants and events of default that are substantially similar to those contained in the Credit Agreement. The agreement related to the $150.0 million term loan includes a sustainability metric based on targeted greenhouse gas emission reductions, which results in a reduction of the otherwise applicable interest rate margin by one basis point upon achievement of targets set forth therein.

On October 25, 2018, the Operating Partnership entered into a Term Loan Agreement (the “Agreement”) with KeyBank National Association, as Administrative Agent, and the other lenders party thereto, providing for an unsecured term loan facility of up to $250.0 million (the “$250M Term Loan”). The $250M Term Loan ranks pari passu with the Operating Partnership’s existing Revolving Facility and other unsecured indebtedness of the Operating Partnership.

The $250M Term Loan has a scheduled maturity date of October 24, 2025, which maturity date may be extended for up to three additional periods of one year at the Operating Partnership’s option, subject to certain conditions.

The Operating Partnership has the option to increase the $250M Term Loan to $300.0 million, subject to certain conditions, including obtaining commitments from any one or more lenders, whether or not currently party to the Agreement, to provide such increased amounts. The Operating Partnership is permitted to prepay the $250M Term Loan in whole or in part, at any time, subject to a prepayment fee if prepaid on or before October 25, 2023.

Debt Issuance Costs

Debt issuance costs are amortized on a straight-line basis over the terms of the respective loan agreements. The following amounts of amortization of debt issuance costs are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income:

	Three Months Ended March 31,
($ in thousands)	2022		2021
Amortization of debt issuance costs	$	650	$	578

Fair Value of Fixed and Variable Rate Debt

As of March 31, 2022, the estimated fair value of fixed rate debt was $2.3 billion compared to the book value of $2.2 billion. The fair value was estimated using Level 2 and 3 inputs with cash flows discounted at current borrowing rates for similar instruments, which ranged from 3.85% to 5.26%. As of March 31, 2022, the estimated fair value of variable rate debt was $886.9 million compared to the book value of $883.8 million. The fair value was estimated using Level 2 and 3 inputs with cash flows discounted at current borrowing rates for similar instruments, which ranged from 1.55% to 3.45%.

NOTE 8. DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME

In order to manage potential future variable interest rate risk, we enter into interest rate derivative agreements from time to time. We do not use interest rate derivative agreements for trading or speculative purposes. The agreements with each of our derivative counterparties provide that, in the event of default on any of our indebtedness, we could also be declared in default on our derivative obligations.

24

As of March 31, 2022, we were party to 12 cash flow derivative agreements with notional amounts totaling $720.0 million, which includes $470.0 million of interest rate swaps assumed in connection with the Merger. These derivative agreements effectively fix the interest rate underlying certain variable rate debt instruments over expiration dates through 2026. Using a weighted average interest rate spread over LIBOR on all variable rate debt resulted in fixing the weighted average interest rate at 3.72%.

As of March 31, 2022, we were also party to two fair value derivative agreements with notional amounts totaling $155.0 million that swap a blended fixed rate of 4.52% for a blended floating rate of LIBOR plus 3.70% with an expiration date of September 10, 2025.

In December 2021, we entered into two forward-starting interest rate swap contracts with notional amounts totaling $150.0 million that swap a floating rate of compound Secured Overnight Financing Rate (“SOFR”) for a fixed rate of 1.356% with an effective date of June 1, 2022 and an expiration date of June 1, 2032. As of March 31, 2022, the estimated fair value of the forward-starting swaps represented an asset of $10.5 million and is reflected within “Prepaid and other assets” in the accompanying consolidated balance sheets.

As of March 31, 2022, the estimated fair value of our interest rate derivatives represented an asset of $5.6 million and a liability of $17.8 million, including accrued interest of $1.2 million. The derivative assets are reflected within “Prepaid and other assets” and the derivative liabilities are reflected within “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets. As of December 31, 2021, the estimated fair value of our interest rate derivatives represented a liability of $35.7 million, including accrued interest of $1.0 million, which is reflected within “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to earnings over time as the hedged items are recognized in earnings. Approximately $4.1 million and $1.3 million was reclassified as a reduction to earnings during the three months ended March 31, 2022 and 2021, respectively. As interest payments on our derivatives are made over the next 12 months, we estimate the decrease to interest expense to be $2.2 million, assuming the current LIBOR and SOFR curves.

Unrealized gains and losses on our interest rate derivative agreements are the only components of the change in accumulated other comprehensive loss.

NOTE 9. SHAREHOLDERS’ EQUITY

Distributions

Our Board of Trustees declared a cash distribution of $0.20 per common share and Common Unit for the first quarter of 2022. This distribution was paid on April 15, 2022 to common shareholders and Common Unit holders of record as of April 8, 2022.

At-The-Market Offering Program

On February 23, 2021, the Company and the Operating Partnership entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with each of BofA Securities, Inc., Citigroup Global Markets Inc., KeyBanc Capital Markets Inc. and Raymond James & Associates, Inc., pursuant to which the Company may sell, from time to time, up to an aggregate sales price of $150.0 million of its common shares of beneficial interest, $0.01 par value per share under an at-the-market offering program (the “ATM Program”). On November 30, 2021, the Company and the Operating Partnership amended the Equity Distribution Agreement to reflect their filing of a shelf registration statement on November 16, 2021 with the SEC. As of March 31, 2022, the Company has not sold any common shares under the ATM Program. The Operating Partnership intends to use the net proceeds, if any, to repay borrowings under its Revolving Facility and other indebtedness and for working capital and other general corporate purposes. The Operating Partnership may also use net proceeds for acquisitions of operating properties and the development or redevelopment of properties, although there are currently no understandings, commitments or agreements to do so.

Share Repurchase Program

In February 2021, the Company’s Board of Trustees approved a share repurchase program, authorizing share repurchases up to an aggregate of $150.0 million (the “Share Repurchase Program”). In February 2022, the Company extended its Share Repurchase Program for an additional year and it will now terminate on February 28, 2023 if not terminated or extended prior

25

to that date. In April 2022, the Company’s Board of Trustees authorized a $150.0 million increase to the size of the Share Repurchase Program, authorizing share repurchases up to an aggregate $300.0 million. As of March 31, 2022, the Company has not repurchased any shares under its Share Repurchase Program. The Company intends to fund any future repurchases under the Share Purchase Program with cash on hand or availability under its Revolving Facility, subject to any applicable restrictions. The timing of share repurchases and the number of common shares to be repurchased under the Share Repurchase Program will depend upon prevailing market conditions, regulatory requirements and other factors.

NOTE 10. EARNINGS PER SHARE OR UNIT

Basic earnings per share or unit is calculated based on the weighted average number of common shares or units outstanding during the period. Diluted earnings per share or unit is determined based on the weighted average number of common shares or units outstanding during the period combined with the incremental average common shares or units that would have been outstanding assuming the conversion of all potentially dilutive common shares or units into common shares or units as of the earliest date possible.

Potentially dilutive securities include (i) outstanding options to acquire common shares; (ii) Limited Partner Units, which may be exchanged for either cash or common shares, at the Parent Company’s option and under certain circumstances; (iii) appreciation-only Long-Term Incentive Plan (“AO LTIP”) units; and (iv) deferred common share units, which may be credited to the personal accounts of non-employee trustees in lieu of compensation paid in cash or the issuance of common shares to such trustees. Limited Partner Units have been omitted from the Parent Company’s denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the denominator would have no dilutive impact. Weighted average Limited Partner Units outstanding for the three months ended March 31, 2022 and 2021 were 2.4 million and 2.5 million, respectively.

Due to the net loss allocable to common shareholders and Common Unit holders for the three months ended March 31, 2022, no securities had a dilutive impact for this period.

NOTE 11. COMMITMENTS AND CONTINGENCIES

Other Commitments and Contingencies

We are obligated under various completion guarantees with certain lenders and lease agreements with tenants to complete all or portions of a development project and tenant-specific space currently under construction. We believe we currently have sufficient financing in place to fund these projects and expect to do so primarily through borrowings on our Revolving Facility.

In 2017, we provided a repayment guaranty on a $33.8 million construction loan associated with the development of the Embassy Suites at the University of Notre Dame, consistent with our 35% ownership interest. Our portion of the repayment guaranty is limited to $5.9 million and the guaranty’s term is through July 1, 2024, the maturity date of the construction loan. As of March 31, 2022, the outstanding loan balance is $33.6 million, of which our share is $11.8 million. The loan is secured by the hotel.

As of March 31, 2022, we had outstanding letters of credit totaling $1.5 million with no amounts advanced against these instruments.

Legal Proceedings

We are not subject to any material litigation nor, to management’s knowledge, is any material litigation currently threatened against us. We are parties to routine litigation, claims, and administrative proceedings arising in the ordinary course of business. Management believes that such matters will not have a material adverse impact on our consolidated financial condition, results of operations or cash flows taken as a whole.

NOTE 12. SUBSEQUENT EVENTS

Subsequent to March 31, 2022, we:

•closed on the acquisition of a two-tenant building adjacent to MacArthur Crossing, an existing multi-tenant retail property located in the Dallas MSA, for a gross purchase price of $21.9 million;

•used the $125.0 million short-term deposit that matured on April 7, 2022 to repay borrowings on the Revolving Facility. See Note 2 to the consolidated financial statements for further details; and

26

•repaid a mortgage payable with a principal balance of $11.4 million and a fixed interest rate of 4.65%.

In April 2022, the Company’s Board of Trustees authorized a $150.0 million increase to the size of the Share Repurchase Program, authorizing share repurchases up to an aggregate $300.0 million.

27

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the accompanying historical financial statements and related notes thereto. In this discussion, unless the context suggests otherwise, references to “our Company,” “we,” “us,” and “our” mean Kite Realty Group Trust and its direct and indirect subsidiaries, including Kite Realty Group, L.P.

CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, together with other statements and information publicly disseminated by us, 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, financial or otherwise, expressed or implied by the forward-looking statements.

Currently, one of the most significant factors that could cause actual outcomes to differ significantly from our forward-looking statements is the adverse effect of the current pandemic of the novel coronavirus (“COVID-19”), including possible resurgences, variants and mutations, on the financial condition, results of operations, cash flows and performance of the Company and its tenants, the real estate market and the global economy and financial markets. Moreover, investors are cautioned to interpret many of the risks identified under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 as being heightened as a result of the ongoing and numerous adverse effects of COVID-19.

Additional risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to:

•risks associated with the Company’s Merger (defined below) with Retail Properties of America, Inc. (“RPAI”), including the integration of the businesses of the combined company, the ability to achieve expected synergies or cost savings and potential disruptions to the Company’s plans and operations;

•national and local economic, business, real estate and other market conditions, particularly in connection with low or negative growth in the U.S. economy as well as economic uncertainty (including the potential effects of inflation);

•financing risks, including the availability of, and costs associated with, sources of liquidity;

•our ability to refinance, or extend the maturity dates of, our indebtedness;

•the level and volatility of interest rates;

•the financial stability of tenants;

•the competitive environment in which we operate, including potential oversupplies and reduction in demand for rental space;

•acquisition, disposition, development and joint venture risks;

•property ownership and management risks, including the relative illiquidity of real estate investments, and expenses, vacancies or the inability to rent space on favorable terms or at all;

•our ability to maintain our status as a real estate investment trust (“REIT”) for U.S. federal income tax purposes;

•potential environmental and other liabilities;

•impairment in the value of real estate property we own;

•the attractiveness of our properties to tenants, the actual and perceived impact of e-commerce on the value of shopping center assets and changing demographics and customer traffic patterns;

28

•business continuity disruptions and a deterioration in our tenant’s ability to operate in affected areas or delays in the supply of products or services to us or our tenants from vendors that are needed to operate efficiently, causing costs to rise sharply and inventory to fall;

•risks related to our current geographical concentration of our properties in Texas, Florida, New York, Maryland, and North Carolina;

•civil unrest, acts of terrorism or war, acts of God, climate change, epidemics, pandemics (including COVID-19), natural disasters and severe weather conditions, including such events that may result in underinsured or uninsured losses or other increased costs and expenses;

•changes in laws and government regulations including governmental orders affecting the use of our properties or the ability of our tenants to operate, and the costs of complying with such changed laws and government regulations;

•possible short-term or long-term changes in consumer behavior due to COVID-19 and the fear of future pandemics;

•our ability to satisfy environmental, social or governance standards set by various constituencies;

•insurance costs and coverage;

•risks associated with cybersecurity attacks and the loss of confidential information and other business disruptions;

•other factors affecting the real estate industry generally; and

•other risks identified in this Quarterly Report on Form 10-Q and, from time to time, in other reports we file with the Securities and Exchange Commission (the “SEC”) or in other documents that we publicly disseminate, including, in particular, the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

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

Overview

Our Business and Properties

Kite Realty Group Trust is a publicly held REIT which, through its majority-owned subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development, and redevelopment of high-quality, open-air shopping centers and mixed-use assets in select markets in the United States. We derive revenues primarily from activities associated with the collection of contractual rents and reimbursement payments from tenants at our properties. Therefore, our operating results depend materially on, among other things, the ability of our tenants to make required lease payments, the health and resilience of the U.S. retail sector, interest rate volatility, job growth and real estate market and overall economic conditions.

As of March 31, 2022, we owned interests in 181 operating retail properties totaling approximately 28.8 million square feet and one office property with 0.3 million square feet. Of the 181 operating retail properties, 11 contain an office component. We also owned seven development projects under construction as of this date.

Merger with RPAI

On October 22, 2021, we completed a merger with RPAI in accordance with the Agreement and Plan of Merger dated July 18, 2021 (the “Merger Agreement”), by and among the Company, its wholly owned subsidiary KRG Oak, LLC (“Merger Sub”) and RPAI, pursuant to which RPAI merged with and into Merger Sub (the “Merger”). Immediately following the closing of the Merger, Merger Sub merged with and into the Operating Partnership so that all of the assets and liabilities of the Company continue to be held at or below the Operating Partnership level. As a result of the Merger, we acquired 100 operating retail properties and five active development projects along with multiple parcels of entitled land for future value creation, creating a top five open-air shopping center REIT. The combined high-quality, open-air portfolio is a mixture of predominantly necessity-based, grocery-anchored neighborhood and community centers, combined with vibrant mixed-use assets. The Merger more than doubled the Company’s presence in high-growth markets that have mild or temperate climates and no or relatively low income taxes, while also introducing and/or enhancing its presence in strategic gateway markets. In addition, the combined company

29

has additional opportunities to further increase shareholder value, including leasing of pandemic-related vacancies, optimizing net operating income (“NOI”) margins, lowering the Company’s cost of capital, and completing select development projects. Pursuant to the terms of the Merger Agreement, each outstanding share of RPAI common stock converted into the right to receive 0.623 common shares of the Company plus cash in lieu of fractional Company shares. The Operating Partnership issued an equivalent amount of General Partner Units to the Parent Company.

Impacts on Business from COVID-19

In 2020, the COVID-19 pandemic had a significant adverse impact on many of our tenants and on our business. The effects of COVID-19, including related government restrictions, mandatory quarantines, “shelter in place” orders, border closures, “social distancing” practices, masking requirements and other travel and gathering restrictions and practices, have caused many of our tenants to close stores, reduce hours or significantly limit service, each of which may continue to create headwinds for our tenants. Since we cannot estimate when the containment measures will roll back, end, or be reinstated, we cannot estimate the ultimate operational and financial impact of COVID-19 on our business.

As the domestic economy continues to recover, retailers continue to improve their operations to account for the pandemic, including using open-air centers as convenient shopping destinations and last-mile fulfillment through the use of in-store pickup, curbside pickup, and shipping from stores. Historically, economic indicators such as GDP growth, consumer confidence and employment have been correlated with demand for certain of our tenants’ products and services. If an economic recession returns, it could increase the number of our tenants that are unable to meet their lease obligations to us and could limit the demand for our space from new tenants.

We expect the significance of the COVID-19 pandemic, including the extent of its effects on our business, financial performance and condition, operating results and cash flows and the economic slowdown, to be dictated by, among other things, the duration of the COVID-19 pandemic, including possible resurgences and mutations, the success of efforts to contain it, the efficacy of vaccines, including against variants of COVID-19, public adoption rates of vaccines and the impact of other actions taken in response to the pandemic. These uncertainties make it difficult to predict operating results for our business; therefore, there can be no assurances that we will not experience further declines in revenues, net income, Funds From Operations (“FFO”) or other operating metrics, which could be material.

Inflation

Most of our leases contain provisions designed to mitigate the adverse impact of inflation, including stated rent increases and requirements for tenants to pay a share of operating expenses, including common area maintenance, real estate taxes, insurance or other operating expenses related to the maintenance of our properties, including escalation clauses in certain leases. Most of our leases also include clauses that allow us to collect additional rent based on a percentage of tenants’ gross sales over stated thresholds, which sales generally increase as prices rise. In addition, we believe that the rental rates in many of our leases are below current market rates for comparable space and that upon renewal, such rates may be increased to be inline with current rates, which may offset certain inflationary expense pressures. We also periodically evaluate our exposure to interest rate fluctuations and enter into interest rate protection agreements to mitigate the impact of changes in interest rates on our variable rate debt.

Operating Activity

During the first quarter of 2022, we executed new and renewal leases on 182 individual spaces totaling 1,053,963 square feet (16.1% cash leasing spread on 105 comparable leases). New leases were signed on 72 individual spaces for 326,957 square feet of gross leasable area (“GLA”) (58.7% cash leasing spread on 26 comparable leases), while renewal leases were signed on 110 individual spaces for 727,006 square feet of GLA (8.9% cash leasing spread on 79 comparable leases). Comparable new and renewal leases are defined as those for which the space was occupied by a tenant within the last 12 months.

Results of Operations

The comparability of results of operations for the three months ended March 31, 2022 and 2021 is affected by our Merger with RPAI that was completed on October 22, 2021, in which we acquired 100 operating retail properties as well as five active development projects, along with our development, redevelopment, and operating property acquisition and disposition activities during these periods. Therefore, we believe it is most useful to review the comparisons of our results of operations for these periods in conjunction with the discussion of our activities during those periods, which is set forth below.

30

Property Acquisitions

In addition to the properties we acquired in the Merger, the following properties were acquired at various times during the period from January 1, 2021 through March 31, 2022:

Property Name	Metropolitan Statistical Area (MSA)	Acquisition Date	Owned GLA
Nora Plaza outparcel	Indianapolis, IN	December 2021	23,722
Pebble Marketplace	Las Vegas, NV	February 2022	85,796

Operating Property Dispositions

The following operating property was sold during the period from January 1, 2021 through March 31, 2022:

Property Name	MSA	Disposition Date	Owned GLA
Westside Market	Dallas, TX	October 2021	93,377

Development and Redevelopment Projects

The following properties were under active development or redevelopment at various times during the period from January 1, 2021 through March 31, 2022 and removed from our operating portfolio:

Project Name	MSA	Transition to Development or Redevelopment(1)	Transition to Operating Portfolio	Owned Commercial GLA
Hamilton Crossing Centre(2)(3)	Indianapolis, IN	June 2014	Pending	92,283
The Corner(2)	Indianapolis, IN	December 2015	Pending	24,000
Eddy Street Commons – Phase III	South Bend, IN	September 2020	March 2022	18,600
Glendale Town Center(2)	Indianapolis, IN	March 2019	December 2021	199,021
The Landing at Tradition – Phase II	Port St. Lucie, FL	September 2021	Pending	39,900
Carillon MOB(4)	Washington, D.C.	October 2021	Pending	126,000
Circle East(4)	Baltimore, MD	October 2021	Pending	82,000
One Loudoun Downtown – Residential and Pads G&H Commercial(4)	Washington, D.C.	October 2021	Pending	67,000
Shoppes at Quarterfield(4)	Baltimore, MD	October 2021	Pending	58,000

(1)Transition date represents the date the property was transferred from our operating portfolio into redevelopment status. For legacy RPAI projects, the transition date represents the later of the date of the closing of the Merger and the date the project was transferred into redevelopment status.

(2)This property has been identified as a redevelopment property and is not included in the operating portfolio or the same property pool. The redevelopment projects at Hamilton Crossing Centre and The Corner will include the creation of a mixed-used development.

(3)A portion of the Hamilton Crossing Centre redevelopment was sold in January 2022.

(4)Project was assumed as part of the Merger with RPAI in October 2021.

31

Comparison of Operating Results for the Three Months Ended March 31, 2022 to the Three Months Ended March 31, 2021

The following table reflects changes in the components of our consolidated statements of operations for the three months ended March 31, 2022 and 2021.  

	Three Months Ended March 31,
($ in thousands)	2022			2021			Change
Revenue:
Rental income	$	189,858		$	67,890		$	121,968
Other property-related revenue	2,224			1,051			1,173
Fee income	2,309			434			1,875
Total revenue	194,391			69,375			125,016
Expenses:
Property operating	25,928			10,269			15,659
Real estate taxes	26,859			9,400			17,459
General, administrative and other	13,309			7,276			6,033
Merger and acquisition costs	925			—			925
Depreciation and amortization	121,504			30,634			90,870
Total expenses	188,525			57,579			130,946
Gain on sales of operating properties, net	3,168			26,207			(23,039)
Operating income	9,034			38,003			(28,969)
Other (expense) income:
Interest expense	(25,514)			(12,242)			(13,272)
Income tax benefit of taxable REIT subsidiary	71			118			(47)
Equity in loss of unconsolidated subsidiaries	(314)			(318)			4
Other expense, net	(103)			(206)			103
Net (loss) income	(16,826)			25,355			(42,181)
Net loss (income) attributable to noncontrolling interests	22			(778)			800
Net (loss) income attributable to common shareholders	$	(16,804)		$	24,577		$	(41,381)
Property operating expense to total revenue ratio	13.3		%	14.8		%

Rental income (including tenant reimbursements) increased $122.0 million, or 179.7%, due to the following:

($ in thousands)	Net change 2021 to 2022
Properties or components of properties sold during 2021 or 2022	$	(533)
Properties under redevelopment or acquired during 2021 and/or 2022	2,922
Properties acquired in the Merger with RPAI	120,848
Properties fully operational during 2021 and 2022 and other	(1,269)
Total	$	121,968

The net decrease of $1.3 million in rental income for properties fully operational during 2021 and 2022 is primarily due to a decrease in lease termination income of $1.0 million and lower tenant reimbursements due to lower recoverable real estate taxes. These variances were partially offset by higher base minimum rent of $0.5 million due to improved tenant performance and higher overage rent of $0.4 million. The occupancy of the fully operational properties increased from 88.4% for 2021 to 89.5% for 2022.

Other property-related revenue primarily consists of parking revenues, gains on the sale of land and other miscellaneous activity. This revenue increased by $1.2 million primarily as a result of an increase in parking revenue of $0.4 million and specialty income of $1.0 million, partially offset by $0.3 million of gains on sales of undepreciated assets recognized during the three months ended March 31, 2021. No such gain was recognized during the three months ended March 31, 2022.

We recorded fee income of $2.3 million and $0.4 million during the three months ended March 31, 2022 and 2021, respectively, from property management and development services provided to third parties and unconsolidated joint ventures.

32

The increase in fee income is primarily related to development fee services for the development of a corporate campus for Republic Airways.

Property operating expenses increased $15.7 million, or 152.5%, due to the following:

($ in thousands)	Net change 2021 to 2022
Properties or components of properties sold during 2021 or 2022	$	(114)
Properties under redevelopment or acquired during 2021 and/or 2022	1,016
Properties acquired in the Merger with RPAI	14,299
Properties fully operational during 2021 and 2022 and other	458
Total	$	15,659

The net increase of $0.5 million in property operating expenses for properties fully operational during 2021 and 2022 is primarily due to increases in repairs and maintenance expense of $0.9 million and insurance expense of $0.4 million, partially offset by a reduction in non-recoverable operating expenses. As a percentage of revenue, property operating expenses decreased from 14.8% to 13.3% due to an increase in revenue in 2022.

Real estate taxes increased $17.5 million, or 185.7%, due to the following:

($ in thousands)	Net change 2021 to 2022
Properties or components of properties sold during 2021 or 2022	(124)
Properties under redevelopment or acquired during 2021 and/or 2022	545
Properties acquired in the Merger with RPAI	18,204
Properties fully operational during 2021 and 2022 and other	(1,166)
Total	$	17,459

The net decrease of $1.2 million in real estate taxes for properties that were fully operational during 2021 and 2022 is primarily due to successful real estate tax appeals at certain properties in the portfolio, most notably for certain of our Texas properties. The majority of real estate tax expense is recoverable from tenants and such recovery is reflected in rental income.

General, administrative and other expenses increased $6.0 million, or 82.9%. This increase is primarily due to incremental head count as part of the Merger and higher share-based compensation expense.

The Company incurred $0.9 million of merger and acquisition costs related to the Merger with RPAI during the three months ended March 31, 2022. These costs primarily consist of professional fees and technology costs.

Depreciation and amortization expense increased $90.9 million, or 296.6%, primarily as a result of the Merger with RPAI as detailed below:

($ in thousands)	Net change 2021 to 2022
Properties or components of properties sold during 2021 or 2022	$	2,683
Properties under redevelopment or acquired during 2021 and/or 2022	1,005
Properties acquired in the Merger with RPAI	90,990
Properties fully operational during 2021 and 2022 and other	(3,808)
Total	$	90,870

The net decrease of $3.8 million in depreciation and amortization at properties fully operational during 2021 and 2022 is primarily due to the timing of additions and disposals at operating properties.

Interest expense increased $13.3 million, or 108.4%, primarily due to interest costs of $13.5 million related to debt assumed in conjunction with the Merger.

Net Operating Income and Same Property Net Operating Income

We use property NOI, a non-GAAP financial measure, to evaluate the performance of our properties. We define NOI as income from our real estate, including lease termination fees received from tenants, less our property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions and certain corporate level expenses,

33

including merger and acquisition costs. We believe that NOI is helpful to investors as a measure of our operating 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 depreciation and amortization, interest expense, and impairment, if any.

We also use same property NOI (“Same Property NOI”), a non-GAAP financial measure, to evaluate the performance of our properties. Same Property NOI is net income excluding properties that have not been owned for the full periods presented. However, due to the size of the RPAI portfolio acquired in the Merger with RPAI, which closed in October 2021, the legacy RPAI properties have been deemed to qualify for the same property pool beginning in 2022 if they had a full first quarter of operations in 2021 within the legacy RPAI portfolio prior to the Merger. Same Property NOI also excludes (i) net gains from outlot sales, (ii) straight-line rent revenue, (iii) lease termination income in excess of lost rent, (iv) amortization of lease intangibles, and (v) significant prior period expense recoveries and adjustments, if any. When the Company receives payments in excess of any accounts receivable for terminating a lease, Same Property NOI will include such excess payments as monthly rent until the earlier of the expiration of 12 months or the start date of a replacement tenant. The Company believes that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full periods presented. The Company believes such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular periods presented and thus provides a more consistent metric for the comparison of our properties. Same Property NOI includes the results of properties that have been owned for the entire current and prior year reporting periods. In order to provide meaningful comparative information across periods that, in some cases, predate the Merger, all information regarding the performance of the same property pool is presented as though the Merger was consummated on January 1, 2021 (i.e., as though the properties owned by RPAI prior to the Merger that are included in our same property pool had been owned by the Company for the entirety of all comparison periods for which same property pool information is presented).

NOI and Same Property NOI should not, however, be considered as alternatives to net income (calculated in accordance with GAAP) as indicators of our financial performance. Our computation of NOI and Same Property NOI may differ from the methodology used by other REITs, and therefore may not be comparable to such other REITs.

When evaluating the properties that are included in the same property pool, we have established specific criteria for determining the inclusion of properties acquired or those recently under development. An acquired property is included in the same property pool when there is a full quarter of operations in both years subsequent to the acquisition date. The properties acquired in the Merger with RPAI qualify for the same property pool beginning in 2022 if they had a full first quarter of operations in 2021 within the legacy RPAI portfolio prior to the Merger. Development and redevelopment properties are included in the same property pool four full quarters after the properties have been transferred to the operating portfolio. A redevelopment property is first excluded from the same property pool when the execution of a redevelopment plan is likely and we (a) begin recapturing space from tenants or (b) the contemplated plan significantly impacts the operations of the property. For the three months ended March 31, 2022, the same property pool excludes (i) Glendale Town Center, which was reclassified from active redevelopment into our operating portfolio in December 2021, (ii) seven active development and redevelopment projects, (iii) Arcadia Village and Pebble Marketplace, which were acquired subsequent to January 1, 2021, and (iv) office properties.

34

The following table reflects Same Property NOI and a reconciliation to net (loss) income attributable to common shareholders for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
($ in thousands)	2022			2021			Change
Number of properties in same property pool for the period(1)	178			178
Leased percentage at period end	93.6		%	91.3		%
Economic occupancy percentage(2)	90.4		%	89.7		%
Same Property NOI	$	129,523		$	122,252		5.9	%
Reconciliation of Same Property NOI to most directly comparable GAAP measure:
Net operating income – same properties	$	129,523		$	122,252
Prior period collection impact – same properties	1,964			5,658
Net operating income – non-same activity(3)	7,808			(78,638)
Total property NOI	139,295			49,272			182.7	%
Other income, net	1,963			28
General, administrative and other	(13,309)			(7,276)
Merger and acquisition costs	(925)			—
Depreciation and amortization	(121,504)			(30,634)
Interest expense	(25,514)			(12,242)
Gain on sales of operating properties, net	3,168			26,207
Net loss (income) attributable to noncontrolling interests	22			(778)
Net (loss) income attributable to common shareholders	$	(16,804)		$	24,577

(1)Same Property NOI excludes (i) Glendale Town Center, which was reclassified from active redevelopment into our operating portfolio in December 2021, (ii) seven active development and redevelopment projects, (iii) Arcadia Village and Pebble Marketplace, which were acquired subsequent to January 1, 2021, and (iv) office properties.

(2)Excludes leases that are signed but for which tenants have not yet commenced the payment of cash rent. Calculated as a weighted average based on the timing of cash rent commencement and expiration during the period.

(3)Includes non-cash activity across the portfolio as well as NOI from properties not included in the same property pool, including properties sold during both periods.

Our Same Property NOI increased 5.9% for the three months ended March 31, 2022 compared to the same period of the prior year primarily due to improved collection activity and tenant performance resulting in a reduction in bad debt expense in 2022 compared to 2021, which was more heavily impacted by the COVID-19 pandemic.

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, a non-GAAP financial measure, in accordance with the best practices described in the April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts (“NAREIT”), as restated in 2018. The NAREIT white paper defines FFO as net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

Considering the nature of our business as a real estate owner and operator, the Company believes 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 excludes the 2021 gain on sale of the ground lease portfolios as these sales were part of our capital strategy distinct from our ongoing operating strategy of selling individual land parcels from time to time. FFO (a) should not be considered as an alternative to net income (calculated in accordance with GAAP) for the purpose of measuring our financial performance, (b) is not an alternative to cash flow from operating activities (calculated in accordance with GAAP) as a measure of our liquidity, and (c) is not indicative of funds available to satisfy our cash needs, including our ability to make distributions. Our

35

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.

From time to time, the Company may report or provide guidance with respect to “NAREIT FFO as adjusted,” which removes the impact of certain non-recurring and non-operating transactions or other items the Company does not consider to be representative of its core operating results including, without limitation, gains or losses associated with the early extinguishment of debt, gains or losses associated with litigation involving the Company that is not in the normal course of business, merger and acquisition costs, the impact on earnings from employee severance, the excess of redemption value over carrying value of preferred stock redemption, and the impact of prior period bad debt or the collection of accounts receivable previously written off (“prior period collection impact”), which are not otherwise adjusted in the Company’s calculation of FFO.

Our calculations of FFO(1) and reconciliation to consolidated net income and FFO, as adjusted, for the three months ended March 31, 2022 and 2021 (unaudited) are as follows:

	Three Months Ended March 31,
($ in thousands)	2022		2021
Net (loss) income	$	(16,826)	$	25,355
Less: net income attributable to noncontrolling interests in properties	(144)		(132)
Less: gain on sales of operating properties, net	(3,168)		(26,207)
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	121,847		30,971
FFO of the Operating Partnership(1)	101,709		29,987
Less: Limited Partners’ interests in FFO	(1,118)		(870)
FFO attributable to common shareholders(1)	$	100,591	$	29,117
FFO of the Operating Partnership(1)	$	101,709	$	29,987
Add: merger and acquisition costs	925		—
Less: prior period collection impact	(1,096)		(209)
FFO, as adjusted, of the Operating Partnership	$	101,538	$	29,778

(1)“FFO of the Operating Partnership” measures 100% of the operating performance of the Operating Partnership’s real estate properties. “FFO attributable to common shareholders” reflects a reduction for the redeemable noncontrolling weighted average diluted interest in the Operating Partnership.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

We define EBITDA, a non-GAAP financial measure, as net income before interest expense, income tax expense of the taxable REIT subsidiary, and depreciation and amortization. For informational purposes, we also provide Adjusted EBITDA, which we define as EBITDA less (i) EBITDA from unconsolidated entities, (ii) gains on sales of operating properties or impairment charges, (iii) merger and acquisition costs, (iv) other income and expense, (v) noncontrolling interest EBITDA, and (vi) other non-recurring activity or items impacting comparability from period to period. Annualized Adjusted EBITDA is Adjusted EBITDA for the most recent quarter multiplied by four. Net Debt to Adjusted EBITDA is our share of net debt divided by Annualized Adjusted EBITDA. EBITDA, Adjusted EBITDA, Annualized Adjusted EBITDA and Net Debt to Adjusted EBITDA, as calculated by us, are not comparable to EBITDA and EBITDA-related measures reported by other REITs that do not define EBITDA and EBITDA-related measures exactly as we do. EBITDA, Adjusted EBITDA and Annualized Adjusted EBITDA do not represent cash generated from operating activities in accordance with GAAP and should not be considered alternatives to net income as an indicator of performance or as alternatives to cash flows from operating activities as an indicator of liquidity.

Considering the nature of our business as a real estate owner and operator, we believe that EBITDA, Adjusted EBITDA and the ratio of Net Debt to Adjusted EBITDA are helpful to investors in measuring our operational performance because they exclude 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. For informational purposes, we also provide Annualized Adjusted EBITDA, adjusted as described above. We believe this supplemental information provides a meaningful measure of our operating performance. We believe presenting EBITDA and the related measures in this manner allows investors and other interested parties to form a more meaningful assessment of our operating results.

36

The following table presents a reconciliation of our EBITDA, Adjusted EBITDA and Annualized Adjusted EBITDA to net income (the most directly comparable GAAP measure) and a calculation of Net Debt to Adjusted EBITDA.

($ in thousands)	Three Months Ended March 31, 2022
Net loss	$	(16,826)
Depreciation and amortization	121,504
Interest expense	25,514
Income tax benefit of taxable REIT subsidiary	(71)
EBITDA	130,121
Unconsolidated EBITDA	454
Merger and acquisition costs	925
Gain on sales of operating properties, net	(3,168)
Other income and expense, net	417
Noncontrolling interests	(144)
Adjusted EBITDA	128,605
Annualized Adjusted EBITDA(1)	$	514,420
Company share of Net Debt:
Mortgage and other indebtedness, net	$	3,179,118
Plus: Company share of unconsolidated joint venture debt	32,467
Less: Partner share of consolidated joint venture debt(2)	(578)
Less: cash, cash equivalents, restricted cash and short-term deposits	(207,190)
Less: debt discounts, premiums and issuance costs, net	(49,100)
Company share of Net Debt	$	2,954,717
Net Debt to Adjusted EBITDA	5.7x

(1)Represents Adjusted EBITDA for the three months ended March 31, 2022 (as shown in the table above) multiplied by four. 

(2)Partner share of consolidated joint venture debt is calculated based upon the partner’s pro-rata ownership of the joint venture, multiplied by the related secured debt balance.

Liquidity and Capital Resources

Overview

Our primary finance and capital strategy is to maintain a strong balance sheet with sufficient flexibility to fund our operating and investment activities in a cost-effective manner. We consider a number of factors when evaluating our level of indebtedness and when making decisions regarding additional borrowings or equity offerings, including the interest or dividend rate, the maturity date and the Company’s debt maturity ladder, the impact of financial metrics such as overall Company leverage levels and coverage ratios, and the Company’s ability to generate cash flow to cover debt service. We will continue to monitor the capital markets and may consider raising additional capital through the issuance of our common or preferred shares, unsecured debt securities, or other securities.

One of the benefits of the Merger was a strengthened balance sheet to provide the Company with increased liquidity, a well-staggered debt maturity ladder, and an appropriately sized development pipeline. As part of the Merger, we assumed an $850.0 million revolving line of credit, of which the borrowing capacity was $713.5 million as of March 31, 2022, along with other indebtedness.

As of March 31, 2022, we had approximately $74.3 million in cash on hand, $7.8 million in restricted cash and escrow deposits, $713.5 million of remaining availability under our Revolving Facility, $125.0 million of short-term deposits, and $83.5 million of debt maturities for the remainder of 2022. Subsequent to March 31, 2022, we used the $125.0 million short-term deposit that matured on April 7, 2022 to repay borrowings on our revolving line of credit. We believe we will have adequate liquidity over the next 12 months and beyond to operate our business and meet our cash requirements. However, because we do not know the ultimate severity and length of the COVID-19 pandemic or the short- or long-term impact it may have on consumer behavior, and thus cannot predict the impact it will have on our tenants and on the debt and equity capital markets, we cannot estimate the ultimate impact it will have on our liquidity and capital resources.

37

Our Principal Capital Resources  

For a discussion of cash generated from operations, see “Cash Flows” beginning on page 39. In addition to cash generated from operations, our other principal capital resources are discussed below.

Over the last several years, we have made substantial progress in enhancing our liquidity position and reducing our leverage and borrowing costs. We continue to focus on a balanced approach to growth and staggering debt maturities in order to retain our financial flexibility.

As of March 31, 2022, we had approximately $713.5 million available under our Revolving Facility for future borrowings. We also had $199.3 million in cash, cash equivalents and short-term deposits as of March 31, 2022.

We were in compliance with all applicable financial covenants under our Revolving Facility, unsecured term loans and senior unsecured notes as of March 31, 2022.

On November 16, 2021, the Company filed with the SEC a shelf registration statement on Form S-3, which is effective for a term of three years, relating to the offer and sale, from time to time, of an indeterminate amount of equity and debt securities. Equity securities may be offered and sold by the Parent Company, and the net proceeds of any such offerings would be contributed to the Operating Partnership in exchange for additional General Partner Units. Debt securities may be offered and sold by the Operating Partnership with the Operating Partnership receiving the proceeds. From time to time, we may issue securities under this shelf registration statement for general corporate purposes, which may include acquisitions of additional properties, repayment of outstanding indebtedness, capital expenditures, the expansion, redevelopment, and/or improvement of properties in our portfolio, working capital and other general purposes.

On February 23, 2021, the Company and the Operating Partnership entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with each of BofA Securities, Inc., Citigroup Global Markets Inc., KeyBanc Capital Markets Inc. and Raymond James & Associates, Inc., pursuant to which the Company may sell, from time to time, up to an aggregate sales price of $150.0 million of its common shares of beneficial interest, $0.01 par value per share under an at-the-market offering program (the “ATM Program”). On November 30, 2021, the Company and the Operating Partnership amended the Equity Distribution Agreement to reflect the filing by the Company and the Operating Partnership of a shelf registration statement on November 16, 2021 with the SEC. As of March 31, 2022, the Company has not sold any common shares under the ATM Program. The Operating Partnership intends to use the net proceeds, if any, to repay borrowings under its Revolving Facility and other indebtedness and for working capital and other general corporate purposes. The Operating Partnership may also use the net proceeds for acquisitions of operating properties and the development or redevelopment of properties, although there are currently no understandings, commitments or agreements to do so.

In the future, we will continue to monitor the capital markets and may consider raising additional capital through the issuance of our common shares, preferred shares or other securities. We may also raise capital by disposing of properties, land parcels or other assets that are no longer core components of our growth strategy. The sale price may differ from our carrying value at the time of sale.

Our Principal Liquidity Needs

Short-Term Liquidity Needs

Near-Term Debt Maturities. As of March 31, 2022, we had $256.9 million of secured debt scheduled to mature prior to March 31, 2023, excluding scheduled monthly principal payments. We believe we have sufficient liquidity to repay this obligation from cash on hand, short-term deposits and, if needed, borrowings on our Revolving Facility.

Other Short-Term Liquidity Needs. The requirements for qualifying as a REIT and for a tax deduction for some or all of the dividends paid to shareholders necessitate that we distribute at least 90% of our taxable income on an annual basis. Such requirements cause us to have substantial liquidity needs over both the short and long term. Our short-term liquidity needs consist primarily of funds necessary to pay operating expenses associated with our operating properties, scheduled interest payments of approximately $85.0 million and scheduled principal payments on our debt of approximately $2.6 million for the remainder of 2022, expected dividend payments to our common shareholders and Common Unit holders, and recurring capital expenditures.

In February 2022, our Board of Trustees declared a cash distribution of $0.20 per common share and Common Unit for the first quarter of 2022. This distribution was paid on April 15, 2022 to common shareholders and Common Unit holders of record

38

as of April 8, 2022. Future distributions, if any, are at the discretion of the Board of Trustees, who will continue to evaluate our sources and uses of capital, liquidity position, operating fundamentals, maintenance of our REIT qualification and other factors they may deem relevant.

Other short-term liquidity needs include expenditures for tenant improvements, external leasing commissions and recurring capital expenditures. During the three months ended March 31, 2022, we incurred $3.7 million for recurring capital expenditures on operating properties, $13.0 million for tenant improvements and external leasing commissions, which includes costs to re-lease anchor space at our operating properties related to tenants open and operating as of March 31, 2022 (excluding development and redevelopment properties). We currently anticipate incurring approximately $100 million of additional major tenant improvement costs related to executed leases for space that is currently vacant at a number of our operating properties over the next 12 to 18 months. We believe we have the ability to fund these costs through cash flow from operations or by borrowing on the Revolving Facility.

As of March 31, 2022, we had seven development projects under construction, including five projects assumed in the Merger with RPAI. Total estimated costs for these projects are $176.1 million, of which our share is estimated to be $112.2 million. As of March 31, 2022, we have incurred $21.0 million of these costs. We anticipate incurring the majority of the remaining costs for these projects over the next 24 months and believe we have the ability to fund these projects through cash flow from operations or by borrowing on the Revolving Facility.

Share Repurchase Program

In February 2021, the Company’s Board of Trustees approved a share repurchase program, authorizing share repurchases up to an aggregate of $150.0 million (the “Share Repurchase Program”). In February 2022, the Company extended its Share Repurchase Program for an additional year and it will now terminate on February 28, 2023, if not terminated or extended prior to that date. In April 2022, the Company’s Board of Trustees authorized a $150.0 million increase to the size of the Share Repurchase Program, authorizing share repurchases up to an aggregate $300.0 million. As of March 31, 2022, the Company has not repurchased any shares under its Share Repurchase Program. The Company intends to fund any future repurchases under the Share Purchase Program with cash on hand or availability under the Revolving Facility, subject to any applicable restrictions. The timing of share repurchases and the number of common shares to be repurchased under the Share Repurchase Program will depend upon prevailing market conditions, regulatory requirements and other factors.

Long-Term Liquidity Needs

Our long-term liquidity needs consist primarily of funds necessary to pay for any new development projects, redevelopment of existing properties, non-recurring capital expenditures, acquisitions of properties, payment of indebtedness at maturity and obligations under ground leases.

Selective Acquisitions, Developments and Joint Ventures. We may selectively pursue the acquisition, development and redevelopment of other properties, which would require additional capital. It is unlikely that we would have sufficient funds on hand to meet these long-term capital requirements. We would have to satisfy these needs through additional borrowings, sales of common or preferred shares, issuance of Operating Partnership units, cash generated through property dispositions and/or participation in joint venture arrangements. We cannot be certain that we would have access to these sources of capital on satisfactory terms, if at all, to fund our long-term liquidity requirements. We evaluate all future opportunities against pre-established criteria including, but not limited to, location, demographics, expected return, tenant credit quality, tenant relationships, and amount of existing retail space. Our ability to access the capital markets will be dependent on a number of factors, including general capital market conditions.

Potential Debt Repurchase. We may from time to time, depending on market conditions and prices, contractual restrictions, our financial liquidity and other factors, seek to repurchase our senior unsecured notes maturing at various dates through September 2030 in open market transactions, by tender offer or otherwise, as market conditions warrant.

Commitments under Ground Leases. We are obligated under 12 ground leases for approximately 98 acres of land as of March 31, 2022. Most of these ground leases require fixed annual rent payments and the expiration dates of the remaining initial terms of these ground leases range from 2023 to 2092.

39

Capital Expenditures on Consolidated Properties

The following table summarizes cash capital expenditures for our development and redevelopment projects and other capital expenditures for the three months ended March 31, 2022:

($ in thousands)	Three Months Ended March 31, 2022
Active development and redevelopment projects	$	12,029
Recurring operating capital expenditures (primarily tenant improvements) and other	11,723
Total	$	23,752

We capitalize certain indirect costs such as interest, payroll, and other general and administrative costs related to these development activities. If we had experienced a 10% reduction in development and redevelopment activities, without a corresponding decrease in indirect project costs, we would have recorded additional expense of $0.1 million for the three months ended March 31, 2022.

Debt Maturities

The following table presents maturities of mortgage debt and corporate debt as of March 31, 2022, presented on a calendar year basis:

	Secured Debt
($ in thousands)	Scheduled Principal Payments		Term Maturities		Unsecured Debt		Total
2022	$	2,553	$	83,520	$	—	$	86,073
2023	2,600		220,499		295,000		518,099
2024	2,721		—		269,635		272,356
2025	2,848		—		430,000		432,848
2026	2,981		—		685,000		687,981
Thereafter	30,181		2,480		1,100,000		1,132,661
	$	43,884	$	306,499	$	2,779,635	$	3,130,018
Debt discounts, premiums and issuance costs, net							49,100
Total							$	3,179,118

Failure to comply with the obligations under our debt agreements (including payment obligations) could cause an event of default under such debt, which, among other things, could result in the loss of title to the assets securing the debt, acceleration of the payment of all principal and interest and/or termination of the agreements, or exposure to the risk of foreclosure. In addition, certain of our variable rate loans contain cross-default provisions that provide that a violation by us of any financial covenant set forth in our Revolving Facility will constitute an “Event of Default” under the loans, which could allow the lenders to accelerate the amounts due under our debt agreements if we fail to satisfy these financial covenants. See “Item 1A. Risk Factors – Risks Related to Our Operations” in our Annual Report on Form 10-K for the year ended December 31, 2021 for more information related to the risks associated with our indebtedness.

Impact of Changes in Credit Ratings on Our Liquidity

We have received investment grade corporate credit ratings from three nationally recognized credit rating agencies. These ratings did not change as of March 31, 2022.

In the future, the ratings could change based upon, among other things, the impact that prevailing economic conditions may have on our results of operations and financial condition. Credit rating reductions by one or more rating agencies could also adversely affect our access to funding sources, the cost and other terms of obtaining funding, as well as our overall financial condition, operating results and cash flow.

Cash Flows

As of March 31, 2022, we had cash, cash equivalents and restricted cash of $82.2 million. We may be subject to concentrations of credit risk with regard to our cash and cash equivalents. We place our cash and short-term investments with highly rated financial institutions. While we attempt to limit our exposure at any point in time, occasionally such cash and investments may temporarily be in excess of FDIC and SIPC insurance limits. We also maintain certain compensating balances

40

in several financial institutions in support of borrowings from those institutions. Such compensating balances were not material to the consolidated balance sheets.

Comparison of the Three Months Ended March 31, 2022 to the Three Months Ended March 31, 2021

Cash provided by operating activities was $49.6 million for the three months ended March 31, 2022 and $31.3 million for the same period of 2021. The cash flows were positively impacted by the Merger, which generated incremental operating income, along with improved collection activity including previously deferred rent from the COVID-19 pandemic. This improvement was partially offset by costs paid as part of the Merger along with higher interest costs related to the debt assumed in the Merger.

Cash used in investing activities was $62.2 million for the three months ended March 31, 2022 compared to cash provided by investing activities of $33.9 million for the same period of 2021. Highlights of significant cash sources and uses in investing activities are as follows:

•We acquired Pebble Marketplace and deposited funds for the acquisition of a two-tenant building adjacent to MacArthur Crossing totaling $44.3 million during the three months ended March 31, 2022;

•We received net proceeds of $39.9 million related to the sale of 16 ground leases during the three months ended March 31, 2021; and

•Capital expenditures increased by $15.9 million, partially offset by a change in construction payables of $1.3 million for the three months ended March 31, 2022.

Cash used in financing activities was $5.6 million for the three months ended March 31, 2022 compared to cash provided by financing activities of $120.8 million for the same period of 2021. Highlights of significant cash sources and uses in financing activities are as follows:

•We borrowed $80.0 million on the Revolving Facility and used a portion of the proceeds to repay $42.2 million of mortgage debt during the three months ended March 31, 2022 compared to $25.6 million of debt repayments during the three months ended March 31, 2021;

•We made distributions to common shareholders and holders of common partnership interests in the Operating Partnership of $42.2 million for the three months ended March 31, 2022 compared to distributions of $13.5 million for the three months ended March 31, 2021; and

•In March 2021, we issued $175.0 million of exchangeable senior notes in a private placement offering to fund a portion of our 2022 debt maturities and other borrowings. In connection with this issuance, we incurred transaction costs of $4.9 million and purchased capped calls for $9.8 million.

Critical Accounting Estimates

We based the discussion and analysis of our financial condition and results of operations upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. There were no changes made by management to the critical accounting policies in the three months ended March 31, 2022. We discuss the most critical estimates in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Related to Fixed and Variable Rate Debt

We had $3.2 billion of outstanding consolidated indebtedness as of March 31, 2022 (inclusive of net unamortized debt discounts, premiums and issuance costs of $49.1 million). As of March 31, 2022, we were party to various consolidated interest rate hedge agreements totaling $875.0 million with maturities over various terms through 2026. Reflecting the effects of these hedge agreements, our fixed and variable rate debt would have been $2.8 billion (90%) and $318.9 million (10%), respectively, of our total consolidated indebtedness as of March 31, 2022.

41

As of March 31, 2022, we had $256.9 million of fixed rate debt scheduled to mature within the next twelve months. A 100-basis point change in interest rates would not materially impact the annual cash flows associated with this debt as we expect to repay this debt using cash on hand. A 100-basis point change in interest rates on our unhedged variable rate debt as of March 31, 2022 would change our annual cash flow by $3.2 million. Based upon the terms of our variable rate debt, we are most vulnerable to a change in short-term LIBOR interest rates.

ITEM 4. CONTROLS AND PROCEDURES

Kite Realty Group Trust

Evaluation of Disclosure Controls and Procedures

An evaluation was performed under the supervision and with the participation of the Parent Company’s management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, the Parent Company’s Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There has been no change in the Parent Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) identified in connection with the evaluation required by Rule 13a-15(b) under the Securities Exchange Act of 1934 of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of March 31, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Kite Realty Group, L.P.

Evaluation of Disclosure Controls and Procedures

An evaluation was performed under the supervision and with the participation of the Operating Partnership’s management, including the Chief Executive Officer and Chief Financial Officer of Kite Realty Group Trust (the sole general partner of Kite Realty Group, L.P.), of the effectiveness of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, the Operating Partnership’s Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There has been no change in the Operating Partnership’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) identified in connection with the evaluation required by Rule 13a-15(b) under the Securities Exchange Act of 1934 of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of March 31, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

42

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not subject to any material litigation nor, to management’s knowledge, is any material litigation currently threatened against us. We are parties to routine litigation, claims, and administrative proceedings arising in the ordinary course of business. Management believes that such matters will not have a material adverse impact on our consolidated financial condition, results of operations or cash flows taken as a whole.

As previously disclosed in our joint proxy statement/prospectus, beginning on August 27, 2021, two purported RPAI stockholders filed substantially similar complaints against RPAI and the members of the RPAI board of directors (the “RPAI Board”) in the United States District Court for the Southern District of New York. One of these complaints also named Kite Realty and Merger Sub as defendants. The complaints were captioned as follows: Wang v. Retail Properties of America, Inc. et al., No. 1:21-cv-07237 (S.D.N.Y. filed August 27, 2021); and Hopkins v. Retail Properties of America, Inc. et al., No. 1:21-cv-07324 (S.D.N.Y. filed August 31, 2021). The complaints variously asserted, among other things, claims under Section 14(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 14a-9 promulgated thereunder against RPAI and the members of the RPAI Board and claims under Section 20(a) of the Exchange Act against the members of the RPAI Board (and, in one case, Kite Realty and Merger Sub) for allegedly causing a materially incomplete and misleading registration statement on Form S-4 to be filed on August 23, 2021 with the SEC. Four additional lawsuits were filed against RPAI and the members of the RPAI Board between September 14, 2021 and October 8, 2021 under the captions Callebs v. Retail Properties of America, Inc. et al., No. 1:21-cv-07593 (S.D.N.Y. filed September 10, 2021); Sheridan v. Retail Properties of America, Inc. et al., No. 1:21-cv-04066-SCJ (N.D.Ga. filed October 1, 2021); Whitfield v. Retail Properties of America, Inc. et al., No. 2:21-cv-04390 (E.D.Pa. filed October 6, 2021); and Reinhardt v. Retail Properties of America, Inc. et al., No. 1:21-cv-04187 (N.D.Ga. filed October 8, 2021), which were substantially similar to the other two complaints. Also, on September 15, 2021, a purported Kite Realty shareholder filed a complaint against Kite Realty and the members of the Kite Realty board of trustees in the United States District Court for the Eastern District of New York, captioned as follows: Gentry v. Kite Realty Group Trust et al., No. 1:21-cv-05142 (E.D.N.Y. filed September 15, 2021). The complaint asserted substantially similar claims under Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 as the other complaints against RPAI and the RPAI Board. Plaintiffs sought, among other things, to enjoin or rescind the Merger, an award of damages in the event the Merger was consummated, and an award of costs and attorneys’ fees. Each of these cases were voluntarily dismissed between December 2021 and February 2022.

ITEM 1A. RISK FACTORS

There have been no material changes from the risk factors previously disclosed in response to Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 28, 2022.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

During the three months ended March 31, 2022, certain of our employees surrendered shares owned by them to satisfy their statutory minimum U.S. federal and state tax obligations associated with the vesting of restricted common shares of beneficial interest under the Company’s 2013 Equity Incentive Plan. These shares were repurchased by the Company.

The following table summarizes all of these repurchases during the three months ended March 31, 2022:

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs(1)
January 1, 2022 to January 31, 2022	3,725	$	21.08	N/A	$	150,000,000
February 1, 2022 to February 28, 2022	—	$	—	N/A	$	150,000,000
March 1, 2022 to March 31, 2022	39,160	$	21.84	N/A	$	150,000,000
Total	42,885	$	21.78

(1)Represents amounts outstanding under the Company’s authorized $150.0 million share repurchase program announced in February 2021. This program may be suspended or terminated at any time by the Company and will terminate on February 28, 2023, if not terminated or

43

extended prior to that date. In April 2022, the Company’s Board of Trustees authorized a $150.0 million increase to the size of the share repurchase program, authorizing share repurchases up to an aggregate $300.0 million.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

44

 ITEM 6. EXHIBITS

Exhibit No.	Description	Location
2.1	Agreement and Plan of Merger, dated as of July 18, 2021, by and among Kite Realty Group Trust, KRG Oak, LLC, and Retail Properties of America, Inc.	Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K of Kite Realty Group Trust filed with the SEC on July 19, 2021
3.1	Articles of Amendment and Restatement of Declaration of Trust of the Kite Realty Group Trust, as supplemented and amended	Incorporated by reference to Exhibit 3.1 to the Annual Report on Form 10-K of Kite Realty Group Trust filed with the SEC on February 28, 2022
3.2	Second Amended and Restated Bylaws of the Company, as amended	Incorporated by reference to Exhibit 3.2 to the Annual Report on Form 10-K of Kite Realty Group Trust filed with the SEC on February 28, 2022
10.1	Form of Performance LTIP Unit Agreement	Filed herewith
31.1	Certification of principal executive officer of the Parent Company required by Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.2	Certification of principal financial officer of the Parent Company required by Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.3	Certification of principal executive officer of the Operating Partnership required by Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.4	Certification of principal financial officer of the Operating Partnership required by Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.1	Certification of Chief Executive Officer and Chief Financial Officer of the Parent Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.2	Certification of Chief Executive Officer and Chief Financial Officer of the Operating Partnership pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document	Filed herewith
101.SCH	Inline XBRL Taxonomy Extension Schema Document	Filed herewith
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	Filed herewith
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document	Filed herewith
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	Filed herewith
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	Filed herewith
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)	Filed herewith

45

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		KITE REALTY GROUP TRUST
Date:	May 6, 2022	By:	/s/ JOHN A. KITE
			John A. Kite
			Chairman and Chief Executive Officer
			(Principal Executive Officer)
Date:	May 6, 2022	By:	/s/ HEATH R. FEAR
			Heath R. Fear
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)
		KITE REALTY GROUP, L.P.
			By: Kite Realty Group Trust, its sole general partner
Date:	May 6, 2022	By:	/s/ JOHN A. KITE
			John A. Kite
			Chairman and Chief Executive Officer
			(Principal Executive Officer)
Date:	May 6, 2022	By:	/s/ HEATH R. FEAR
			Heath R. Fear
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)

46

EX-10.1

Exhibit 10.1

Award No.

KITE REALTY GROUP TRUST

2013 EQUITY INCENTIVE PLAN

LTIP UNIT AGREEMENT

COVER SHEET

Pursuant to the Kite Realty Group Trust 2013 Equity Incentive Plan (as it has been amended and/or restated from time to time, the “Plan”) and the Amended and Restated Agreement of Limited Partnership of Kite Realty Group, L.P.(as amended from time to time, the “Limited Partnership Agreement”), Kite Realty Group, L.P., a Delaware limited partnership (the “Limited Partnership”), and Kite Realty Group Trust, a Maryland real estate investment trust and the sole general partner of the Limited Partnership (the “Company”), together hereby grant and issue to the grantee (the “Grantee”) named below an award (the “Award”) of LTIP Units (as defined in the Limited Partnership Agreement) in the maximum number of LTIP Units set forth below in consideration of the Grantee’s agreement to provide services to or for the benefit of the Limited Partnership. The LTIP Units have the rights, voting powers, restrictions, limitations as to distributions, qualifications, and terms and conditions of redemption and conversion set forth in the Limited Partnership Agreement. Upon the close of business on the Final Acceptance Date, if the terms and conditions of the Award set forth on this cover sheet and in the attached LTIP Unit Agreement (including all exhibits, schedules, and attachments thereto, collectively, the “Agreement”), in the Limited Partnership Agreement, and in the Plan are accepted, the Grantee shall receive the number of LTIP Units specified below, effective as of the Grant Date, subject to the vesting, forfeiture, and other conditions set forth in this Agreement, in the Limited Partnership Agreement, and in the Plan.

Name of Grantee:
Maximum Number of LTIP Units Covered by this Agreement:
Target Number of LTIP Units Covered by this Agreement:
Grant Date:
Final Acceptance Date:
Initial “Economic Capital Account Balance” (as defined in the Limited Partnership Agreement) per LTIP Unit:	$
“Class A Unit Economic Balance” (as defined in the Limited Partnership Agreement) on the Grant Date:	$

1

By your signature below, you agree to all of the terms and conditions described herein, in the attached Agreement, in the Limited Partnership Agreement, and in the Plan. You acknowledge that you have carefully reviewed the Limited Partnership Agreement and the Plan and agree that the Limited Partnership Agreement and the Plan will control in the event any provision of this Agreement should appear to be inconsistent.

KITE REALTY GROUP, L.P., a Delaware limited partnership
By:	Kite Realty Group Trust, a Maryland real estate investment trust, its general partner
By:
Name:
Title:
KITE REALTY GROUP TRUST, a Maryland real estate investment trust
By:
Name:
Title:
GRANTEE:
(Sign Name)
(Print Name)
Address:

Attachment

This is not a share certificate or a negotiable instrument.

2

KITE REALTY GROUP TRUST

2013 EQUITY INCENTIVE PLAN

LTIP UNIT AGREEMENT

Acceptance of Agreement

Unless you are already a Partner (as defined in the Limited Partnership Agreement), you must sign, as a Partner, and deliver to the Limited Partnership, a Limited Partner Acceptance to the Limited Partnership Agreement (attached hereto as Exhibit A). Upon signature and delivery of the Limited Partner Acceptance on or prior to the Final Acceptance Date, to the extent required, you shall be admitted as a Partner of the Limited Partnership, as of the Grant Date, with beneficial ownership of the number of LTIP Units specified on the cover sheet of this Agreement. Thereupon, you shall have all the rights of a Partner of the Limited Partnership with respect to the number of LTIP Units specified on the cover sheet of this Agreement, as set forth in the Limited Partnership Agreement, subject, however, to the restrictions and conditions specified herein, in the Limited Partnership Agreement, and in the Plan. In order to confirm receipt of this Agreement, Grantee must sign and deliver to the Company a copy of this Agreement.

Vesting of LTIP Units

The number of Vested LTIP Units (as defined in Exhibit B), if any, that are earned and that vest pursuant to the terms of this Agreement will be determined in accordance with the terms and provisions of Exhibit B attached hereto, including based on the attainment, as determined by the Committee, of the performance components described in Exhibit B to this Agreement, which number of Vested LTIP Units may be equal to all or a portion, including none, of the Maximum Number of LTIP Units Covered by this Agreement set forth on the cover sheet. To the extent you are a party to another agreement or arrangement with the Company or any Affiliate that provides either (i) accelerated vesting of the LTIP Units granted hereunder in the event of certain types of employment terminations or any other applicable vesting-related events or (ii) provides more favorable vesting provisions with respect to the LTIP Units granted hereunder than provided for in this Agreement, such accelerated vesting provisions are hereby expressly superseded and replaced with respect to this Award. Fractional numbers of Vested LTIP Units shall be rounded down to the next nearest whole number, and you cannot vest in more than the Maximum Number of LTIP Units Covered by this Agreement set forth on the cover sheet.

3

Leaves of Absence	For purposes of this Agreement, your Service does not terminate when you go on a bona fide leave of absence that was approved by your employer in writing if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. Your Service terminates in any event when the approved leave ends unless you immediately return to active employee work. Your employer may determine, in its discretion, which leaves count for this purpose and when your Service terminates for all purposes under the Agreement and the Plan, in accordance with the provisions of the Plan. Notwithstanding the foregoing, the Company may determine, in its discretion, which leaves count for this purpose even if your employer does not agree.
Forfeiture of LTIP Units	The LTIP Units shall be subject to forfeiture in accordance with the terms and provisions of Exhibit B attached hereto. Upon such forfeiture, your rights to such LTIP Units shall be null and void, and neither you nor any of your successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such LTIP Units.
Distributions	You shall be entitled to distributions on the LTIP Units in accordance with the terms and provisions of the Limited Partnership Agreement. For purposes of the Limited Partnership Agreement, (i) the Distribution Participation Date (as defined in the Limited Partnership Agreement) for Vested LTIP Units shall be the first trading day following the Certification Date (as defined in Exhibit B); and (ii) for purposes of Special LTIP Unit Distributions (as defined in the Limited Partnership Agreement) payable with respect to Vested LTIP Units, the Distribution Measurement Date (as defined in the Limited Partnership Agreement) for Vested LTIP Units shall be the Grant Date.  For the avoidance of doubt, LTIP Units that do not become Vested LTIP Units shall not have a Distribution Participation Date and shall not be eligible to receive a Special LTIP Unit Distribution.
Conversion and Redemption	The LTIP Units shall be subject to conversion and redemption in accordance with the terms and provisions of the Limited Partnership Agreement. Furthermore, in accordance with the Limited Partnership Agreement, in the event the Grantee’s Service is terminated, the Company reserves the right at any time thereafter to convert Vested LTIP Units into Class A Units of the Limited Partnership (as defined in the Limited Partnership Agreement) as set forth in the Limited Partnership Agreement, subject to the limitations set forth therein, and in addition, to redeem any such Class A Units for Shares or cash, at the election of the Company. Upon any such conversion and redemption, this Agreement shall be fully satisfied, and the Company shall have no further obligation under the Agreement.

4

Restrictions on Transfer

You shall not, without the consent of the Company (which the Company may give or withhold in its sole discretion), sell, pledge, assign, hypothecate, transfer, or otherwise dispose of (collectively, “Transfer”) any LTIP Units (the “Transfer Restrictions”); provided, however, that the Transfer Restrictions shall not apply to any Transfer of LTIP Units to the Limited Partnership or the Company or to any Transfer by will or pursuant to the laws of descent and distribution. In addition, during the two (2)-year period which begins as of the Measurement Date, determined in Exhibit B attached hereto, the Vested LTIP Units (and any Partnership Units, Shares, or other securities into which such Vested LTIP Units may be converted) may not be Transferred, nor may the Vested LTIP Units (and any Partnership Units, Shares, or other securities into which such Vested LTIP Units may be converted) be made subject to execution, attachment, or similar process; provided, however, that this Transfer Restriction (i) shall not prohibit you from exchanging or otherwise disposing of the Vested LTIP Units (and any Partnership Units, Shares, or other securities into which such Vested LTIP Units may be converted) in connection with a Corporate Transaction or other transaction in which LTIP Units or other securities held by other Limited Partners or Company shareholders, as applicable, are required to be exchanged or otherwise disposed; and (ii) shall cease to apply to your Vested LTIP Units (and any Partnership Units, Shares, or other securities into which such Vested LTIP Units may be converted) upon your termination of Service due to death or Disability.

Investment Representation

You hereby make the covenants, representations, and warranties set forth on Exhibit C attached hereto as of the date of acceptance of this Agreement and as of the Certification Date, determined in Exhibit B attached hereto. All of such covenants, warranties, and representations shall survive the execution and delivery of this Agreement by you. You shall immediately notify the Limited Partnership upon discovering that any of the representations or warranties set forth on Exhibit C were false when made or have, as a result of changes in circumstances, become false.

5

Registration	You hereby acknowledge that the LTIP Units have not been registered under the Securities Act and that the LTIP Units cannot be transferred by you other than in accordance with the terms and conditions set forth in this Agreement, the Limited Partnership Agreement, and the Plan, and in any event, unless such transfer is registered under the Securities Act or an exemption from such registration is available. Neither the Company nor the Limited Partnership has made any agreements, covenants, or undertakings whatsoever to register the transfer of the LTIP Units under the Securities Act. Neither the Company nor the Limited Partnership has made any representations, warranties, or covenants whatsoever as to whether any exemption from the Securities Act, including, without limitation, any exemption for limited sales in routine brokers’ transactions pursuant to Rule 144 of the Securities Act (“Rule 144”), will be available. If an exemption under Rule 144 is available at all, it will not be available until all applicable terms and conditions of Rule 144 have been satisfied.
Code Section 83(b) Election	You hereby agree to make an election to include in gross income in the year of grant the LTIP Units pursuant to Section 83(b) of the Code substantially in the form attached hereto as Exhibit D and to supply the necessary information in accordance with the regulations promulgated thereunder. YOU ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY, AND NOT THE COMPANY’S OR THE LIMITED PARTNERSHIP’S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF YOU REQUEST THE COMPANY, THE LIMITED PARTNERSHIP, OR THEIR RESPECTIVE REPRESENTATIVES TO MAKE THIS FILING ON YOUR BEHALF. YOU ARE RELYING SOLELY ON YOUR OWN ADVISORS WITH RESPECT TO THE DECISION AS TO WHETHER TO FILE ANY CODE SECTION 83(b) ELECTION AND REGARDING THE ACCURACY AND TIMELINESS OF SUCH FILING.
Amendment	You acknowledge that the Plan may be amended, suspended, or terminated and that this Agreement may be amended, suspended, or terminated by the Company, on behalf of the Limited Partnership, for the purpose of satisfying changes in law or for any other lawful purpose, provided that no such action shall impair your rights under this Agreement without your written consent.

6

Withholding Taxes	You agree as a condition of this Award that you will make acceptable arrangements to pay any withholding or other taxes that may be due in connection with or otherwise relating to the Award of the LTIP Units. In the event that the Company or an Affiliate, as applicable, determines that any federal, state, local, or foreign tax or withholding payment is required relating to the LTIP Units, the Company or an Affiliate, as applicable, shall have the right to require such payments from you, or withhold such amounts from other payments due to you from the Company or an Affiliate, as applicable.
Retention Rights	This Agreement and the Award evidenced hereby do not give you the right to be retained by the Company or an Affiliate in any capacity. Unless otherwise specified in an employment or other written agreement between the Company or an Affiliate, as applicable, and you, the Company or an Affiliate, as applicable, reserves the right to terminate your Service at any time and for any reason.
Legend	The records of the Limited Partnership evidencing the LTIP Units shall bear an appropriate legend, as determined by the Limited Partnership in its sole discretion, to the effect that such LTIP Units are subject to restrictions as set forth in this Agreement, in the Limited Partnership Agreement, and in the Plan.
Clawback	This Award is subject to mandatory repayment by you to the Company to the extent you are or in the future become subject to any Company “clawback” or recoupment policy that requires the repayment by you to the Company of compensation paid by the Company to you in the event that you fail to comply with, or violate, the terms or requirements of such policy. If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, and you knowingly engaged in the misconduct, were grossly negligent in engaging in the misconduct, knowingly failed to prevent the misconduct, or were grossly negligent in failing to prevent the misconduct, you shall reimburse the Company the amount of any payment in settlement of this Award earned or accrued during the twelve (12)-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred) of the financial document that contained such material noncompliance.

7

Applicable Law and Venue	This Agreement will be interpreted and enforced under the laws of the State of Maryland, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction. You agree that the exclusive venue for any disputes arising out of or related to this Agreement shall be the state or federal courts located in Indianapolis, Indiana.
Remedies	You shall be liable to the Company and the Limited Partnership for all costs and damages, including incidental and consequential damages, resulting from a disposition of the Award or the LTIP Units which is in violation of the provisions of this Agreement. Without limiting the generality of the foregoing, you agree that the Company and the Limited Partnership shall be entitled to obtain specific performance of your obligations under this Agreement and immediate injunctive relief in the event any action or proceeding is brought in equity to enforce the same. You will not urge as a defense that there is an adequate remedy at law.
The Plan	The text of the Plan is incorporated into this Agreement by reference. Certain capitalized terms used in this Agreement are defined in the Plan and have the meaning set forth in the Plan. This Agreement, the Limited Partnership Agreement, and the Plan constitute the entire understanding between you and the Company regarding this Award. Any prior agreements, commitments, or negotiations concerning this Award are superseded; except that any written employment, consulting, confidentiality, non-competition, non-solicitation, and/or severance agreement between you and the Company or an Affiliate, as applicable, shall supersede this Agreement with respect to its subject matter.
Data Privacy	In order to administer the Plan, the Company may process personal data about you. Such data includes, but is not limited to, information provided in this Agreement and any changes thereto, other appropriate personal and financial data about you, such as your contact information, payroll information, and any other information that might be deemed appropriate by the Company to facilitate the administration of the Plan. By accepting this Award, you give explicit consent to the Company to process any such personal data.
Consent to Electronic Delivery	The Company may choose to deliver certain statutory materials relating to the Plan in electronic form. By accepting the LTIP Units, you agree that the Company may deliver the Plan prospectus and the Company’s annual report to you in an electronic format. If at any time you would prefer to receive paper copies of these documents, as you are entitled to, the Company would be pleased to provide copies. Please contact the Company at (317) 577-5600 to request paper copies of these documents.

8

Code Section 409A

It is intended that this Award comply with Code Section 409A or an exemption to Code Section 409A. To the extent that the Company determines that you would be subject to the additional twenty percent (20%) tax imposed on certain non-qualified deferred compensation plans pursuant to Code Section 409A as a result of any provision of this Agreement, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Committee. For purposes of this Award, a termination of employment only occurs upon an event that would be a “separation from service” within the meaning of Code Section 409A.

Profits Interest

The Company, the Limited Partnership, and you acknowledge and agree that the LTIP Units are hereby issued to you for the performance of services to or for the benefit of the Limited Partnership in your capacity as a Partner (as defined in the Limited Partnership Agreement) or in anticipation of becoming a Partner. The Company, the Limited Partnership, and you intend that (a) the LTIP Units be treated as “profits interests” within the meaning of the Code, Treasury Regulations promulgated thereunder, and any published guidance by the Internal Revenue Service with respect thereto, including, without limitation, Internal Revenue Service Revenue Procedure 93-27, 1993-2 C.B. 343, as clarified by Internal Revenue Service Revenue Procedure 2001-43, 2001-2 C.B. 191; (b) the issuance of such interests not be a taxable event to the Limited Partnership or you as provided in such Revenue Procedures; and (c) the Limited Partnership Agreement, the Plan, and this Agreement be interpreted consistently with such intent. You are urged to consult with your own tax advisor regarding the tax consequences of the receipt of LTIP Units, the vesting of LTIP Units, the conversion of LTIP Units into Class A Units, the holding of LTIP Units and Class A Units, the redemption or other disposition of Class A Units, and the acquisition, holding, and disposition of Shares. You shall make no contribution of capital to the Limited Partnership in connection with the Award and, as a result, your Capital Account (as defined in the Limited Partnership Agreement) balance in the Limited Partnership immediately after your receipt of the LTIP Units shall be equal to zero, unless you were a Partner in the Limited Partnership prior to this Award, in which case your Capital Account balance shall not be increased as a result of your receipt of the LTIP Units.

By signing this Agreement, you agree to all of the terms and conditions described above and in the Plan.

9

EX-31.1

EXHIBIT 31.1

KITE REALTY GROUP TRUST

CERTIFICATION

I, John A. Kite, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Kite Realty Group Trust;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 6, 2022	By:	/s/ JOHN A. KITE
		John A. Kite
		Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

KITE REALTY GROUP TRUST

CERTIFICATION

I, Heath R. Fear, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Kite Realty Group Trust;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2022	By:	/s/ HEATH R. FEAR
		Heath R. Fear
		Executive Vice President and Chief Financial Officer

EX-31.3

EXHIBIT 31.3

KITE REALTY GROUP, L.P.

CERTIFICATION

I, John A. Kite, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Kite Realty Group, L.P.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2022	By:	/s/ JOHN A. KITE
		John A. Kite
		Chief Executive Officer Kite Realty Group Trust, sole general partner of Kite Realty Group, L.P.

EX-31.4

EXHIBIT 31.4

KITE REALTY GROUP, L.P.

CERTIFICATION

I, Heath R. Fear, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Kite Realty Group, L.P.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2022	By:	/s/ HEATH R. FEAR
		Heath R. Fear
		Chief Financial Officer Kite Realty Group Trust, sole general partner of Kite Realty Group, L.P.

EX-32.1

EXHIBIT 32.1

 Certification of Chief Executive Officer and Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350, As Adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned, John A. Kite, Chairman and Chief Executive Officer of Kite Realty Group Trust (the “Parent Company”), and Heath R. Fear, Chief Financial Officer of the Parent Company, each hereby certifies based on his knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1)The Quarterly Report on Form 10-Q of the Parent Company for the quarter ended March 31, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

(2)The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Parent Company.

Date: May 6, 2022	By:	/s/ JOHN A. KITE
		John A. Kite
		Chairman and Chief Executive Officer

Date: May 6, 2022	By:	/s/ HEATH R. FEAR
		Heath R. Fear
		Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Parent Company and will be retained by the Parent Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

 Certification of Chief Executive Officer and Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350, As Adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned, John A. Kite, Chief Executive Officer of Kite Realty Group Trust in its capacity as the sole general partner of Kite Realty Group, L.P. (the “Operating Partnership”), and Heath R. Fear, Chief Financial Officer of Kite Realty Group Trust in its capacity as the sole general partner of the Operating Partnership, each hereby certifies based on his knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1)The Quarterly Report on Form 10-Q of the Operating Partnership for the quarter ended March 31, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

(2)The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership.

Date: May 6, 2022	By:	/s/ JOHN A. KITE
		John A. Kite
		Chief Executive Officer Kite Realty Group Trust, sole general partner of Kite Realty Group, L.P.

Date: May 6, 2022	By:	/s/ HEATH R. FEAR
		Heath R. Fear
		Chief Financial Officer Kite Realty Group Trust, sole general partner of Kite Realty Group, L.P.

A signed original of this written statement required by Section 906 has been provided to the Operating Partnership and will be retained by the Operating Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	May 04, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-32268
Entity Registrant Name	KITE REALTY GROUP TRUST
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	11-3715772
Entity Address, Address Line One	30 S. Meridian Street
Entity Address, Address Line Two	Suite 1100
Entity Address, City or Town	Indianapolis
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46204
City Area Code	317
Local Phone Number	577-5600
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	KRG
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		219,040,481
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001286043
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Kite Realty Group, L.P.
Entity Information [Line Items]
Entity File Number	333-202666-01
Entity Registrant Name	KITE REALTY GROUP, L.P.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1453863
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001636315

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets:
Investment properties at cost	$ 7,627,581	$ 7,592,348
Less: accumulated depreciation	(950,737)	(884,809)
Net investment properties	6,676,844	6,707,539
Cash and cash equivalents	74,345	93,241
Tenant and other receivables, including accrued straight-line rent of $32,125 and $28,071, respectively	69,135	68,444
Restricted cash and escrow deposits	7,845	7,122
Deferred costs, net	512,411	541,518
Short-term deposits	125,000	125,000
Prepaid and other assets	96,281	84,826
Investments in unconsolidated subsidiaries	11,833	11,885
Total assets	7,573,694	7,639,575
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness, net	3,179,118	3,150,808
Accounts payable and accrued expenses	124,193	184,982
Deferred revenue and other liabilities	306,268	321,419
Total liabilities	3,609,579	3,657,209
Commitments and contingencies
Limited Partners’ interests in Operating Partnership and other	60,376	55,173
Partners’ Equity:
Common shares, $0.01 par value, 490,000,000 shares authorized, 219,042,903 and 218,949,569 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	2,190	2,189
Additional paid-in capital	4,894,897	4,898,673
Accumulated other comprehensive income (loss)	22,811	(15,902)
Accumulated deficit	(1,021,317)	(962,913)
Total shareholders’ equity	3,898,581	3,922,047
Noncontrolling interests	5,158	5,146
Total equity	3,903,739	3,927,193
Total liabilities and shareholders’ equity	7,573,694	7,639,575
Kite Realty Group, L.P.
Assets:
Investment properties at cost	7,627,581	7,592,348
Less: accumulated depreciation	(950,737)	(884,809)
Net investment properties	6,676,844	6,707,539
Cash and cash equivalents	74,345	93,241
Tenant and other receivables, including accrued straight-line rent of $32,125 and $28,071, respectively	69,135	68,444
Restricted cash and escrow deposits	7,845	7,122
Deferred costs, net	512,411	541,518
Short-term deposits	125,000	125,000
Prepaid and other assets	96,281	84,826
Investments in unconsolidated subsidiaries	11,833	11,885
Total assets	7,573,694	7,639,575
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness, net	3,179,118	3,150,808
Accounts payable and accrued expenses	124,193	184,982
Deferred revenue and other liabilities	306,268	321,419
Total liabilities	3,609,579	3,657,209
Commitments and contingencies
Limited Partners’ interests in Operating Partnership and other	60,376	55,173
Partners’ Equity:
Common shares, $0.01 par value, 490,000,000 shares authorized, 219,042,903 and 218,949,569 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	3,875,770	3,937,949
Accumulated other comprehensive income (loss)	22,811	(15,902)
Total shareholders’ equity	3,898,581	3,922,047
Noncontrolling interests	5,158	5,146
Total equity	3,903,739	3,927,193
Total liabilities and shareholders’ equity	$ 7,573,694	$ 7,639,575

XML

Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accrued straight-line rent	$ 32,125	$ 28,071
Common shares, par value (in USD per share)	$ 0.01	$ 0.01
Common shares, shares authorized (in shares)	490,000,000	490,000,000
Common shares, shares issued (in shares)	219,042,903	218,949,569
Common shares, shares outstanding (in shares)	219,042,903	218,949,569
Kite Realty Group, L.P.
Accrued straight-line rent	$ 32,125	$ 28,071
Common shares, shares issued (in shares)	219,042,903	218,949,569
Common shares, shares outstanding (in shares)	219,042,903	218,949,569

XML

Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Rental income	$ 189,858	$ 67,890
Total revenue	194,391	69,375
Expenses:
Property operating	25,928	10,269
Real estate taxes	26,859	9,400
General, administrative and other	13,309	7,276
Merger and acquisition costs	925	0
Depreciation and amortization	121,504	30,634
Total expenses	188,525	57,579
Gain on sales of operating properties, net	3,168	26,207
Operating income	9,034	38,003
Interest expense	(25,514)	(12,242)
Income tax benefit of taxable REIT subsidiary	71	118
Equity in loss of unconsolidated subsidiaries	(314)	(318)
Other expense, net	(103)	(206)
Net (loss) income	(16,826)	25,355
Net loss (income) attributable to noncontrolling interests	22	(778)
Net (loss) income attributable to common shareholders	$ (16,804)	$ 24,577
Net (loss) income per common share – basic & diluted
Net (loss) income per common share - basic (in USD per share)	$ (0.08)	$ 0.29
Net (loss) income per common share - diluted (in USD per share)	$ (0.08)	$ 0.29
Weighted average common shares outstanding - basic (in shares)	218,981,168	84,336,577
Weighted average common shares outstanding - diluted (in shares)	218,981,168	84,446,989
Dividends per common share (in USD per share)	$ 0.19	$ 0.15
Net (loss) income	$ (16,826)	$ 25,355
Change in fair value of derivatives	38,938	6,733
Total comprehensive income	22,112	32,088
Comprehensive income attributable to noncontrolling interests	(203)	(974)
Comprehensive income attributable to Kite Realty Group Trust	21,909	31,114
Kite Realty Group, L.P.
Revenue:
Rental income	189,858	67,890
Total revenue	194,391	69,375
Expenses:
Property operating	25,928	10,269
Real estate taxes	26,859	9,400
General, administrative and other	13,309	7,276
Merger and acquisition costs	925	0
Depreciation and amortization	121,504	30,634
Total expenses	188,525	57,579
Gain on sales of operating properties, net	3,168	26,207
Operating income	9,034	38,003
Interest expense	(25,514)	(12,242)
Income tax benefit of taxable REIT subsidiary	71	118
Equity in loss of unconsolidated subsidiaries	(314)	(318)
Other expense, net	(103)	(206)
Net (loss) income	(16,826)	25,355
Net loss (income) attributable to noncontrolling interests	(144)	(132)
Net (loss) income attributable to common shareholders	(16,970)	25,223
Allocation of net (loss) income:
Limited Partners	(166)	646
Parent Company	$ (16,804)	$ 24,577
Net (loss) income per common share – basic & diluted
Net (loss) income per common share - basic (in USD per share)	$ (0.08)	$ 0.29
Net (loss) income per common share - diluted (in USD per share)	$ (0.08)	$ 0.29
Weighted average common shares outstanding - basic (in shares)	221,428,198	86,862,153
Weighted average common shares outstanding - diluted (in shares)	221,428,198	86,972,566
Dividends per common share (in USD per share)	$ 0.19	$ 0.15
Net (loss) income	$ (16,826)	$ 25,355
Change in fair value of derivatives	38,938	6,733
Total comprehensive income	22,112	32,088
Comprehensive income attributable to noncontrolling interests	(144)	(132)
Comprehensive income attributable to Kite Realty Group Trust	21,968	31,956
Other property-related revenue
Revenue:
Revenues	2,224	1,051
Other property-related revenue | Kite Realty Group, L.P.
Revenue:
Revenues	2,224	1,051
Fee income
Revenue:
Revenues	2,309	434
Fee income | Kite Realty Group, L.P.
Revenue:
Revenues	$ 2,309	$ 434

XML

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Shares	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit
Balance at beginning of period (in shares) at Dec. 31, 2020		84,187,999
Balance at beginning of period at Dec. 31, 2020	$ 1,230,654	$ 842	$ 2,085,003	$ (30,885)	$ (824,306)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation activity (in shares)		182,486
Stock compensation activity	1,466	$ 2	1,464
Other comprehensive income attributable to Kite Realty Group Trust	6,537			6,537
Distributions declared to common shareholders	(12,992)				(12,992)
Net income (loss) attributable to common shareholders	24,577				24,577
Purchase of capped calls	(9,800)		(9,800)
Exchange of redeemable noncontrolling interests for common shares (in shares)		115,697
Exchange of redeemable noncontrolling interests for common shares	2,062	$ 1	2,061
Adjustment to redeemable noncontrolling interests	(10,633)		(10,633)
Balance at end of period (in shares) at Mar. 31, 2021		84,486,182
Balance at end of period at Mar. 31, 2021	1,231,871	$ 845	2,068,095	(24,348)	(812,721)
Balance at beginning of period (in shares) at Dec. 31, 2021		218,949,569
Balance at beginning of period at Dec. 31, 2021	3,922,047	$ 2,189	4,898,673	(15,902)	(962,913)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation activity (in shares)		93,334
Stock compensation activity	1,822	$ 1	1,821
Other comprehensive income attributable to Kite Realty Group Trust	38,713			38,713
Distributions declared to common shareholders	(41,600)				(41,600)
Net income (loss) attributable to common shareholders	(16,804)				(16,804)
Adjustment to redeemable noncontrolling interests	(5,597)		(5,597)
Balance at end of period (in shares) at Mar. 31, 2022		219,042,903
Balance at end of period at Mar. 31, 2022	$ 3,898,581	$ 2,190	$ 4,894,897	$ 22,811	$ (1,021,317)

XML

Consolidated Statements of Partners' Equity (Unaudited) - USD ($) $ in Thousands	Total	Kite Realty Group, L.P.	Kite Realty Group, L.P. General Partner Common Equity	Kite Realty Group, L.P. General Partner Accumulated Other Comprehensive (Loss) Income
Partners' capital, balance at beginning of period at Dec. 31, 2020		$ 1,230,654	$ 1,261,539	$ (30,885)
Increase (Decrease) in Partners' Capital [Roll Forward]
Stock compensation activity		1,466	1,466
Other comprehensive income attributable to Parent Company	$ 6,537	6,537		6,537
Distributions declared to Parent Company		(12,992)	(12,992)
Net income (loss) attributable to Parent Company	24,577	24,577	24,577
Purchase of capped calls	(9,800)	(9,800)	(9,800)
Conversion of Limited Partner Units to shares of the Parent Company		2,062	2,062
Adjustment to redeemable noncontrolling interests		(10,633)	(10,633)
Partners' capital, balance at end of period at Mar. 31, 2021		1,231,871	1,256,219	(24,348)
Partners' capital, balance at beginning of period at Dec. 31, 2021		3,922,047	3,937,949	(15,902)
Increase (Decrease) in Partners' Capital [Roll Forward]
Stock compensation activity		1,822	1,822
Other comprehensive income attributable to Parent Company	38,713	38,713		38,713
Distributions declared to Parent Company		(41,600)	(41,600)
Net income (loss) attributable to Parent Company	$ (16,804)	(16,804)	(16,804)
Adjustment to redeemable noncontrolling interests		(5,597)	(5,597)
Partners' capital, balance at end of period at Mar. 31, 2022		$ 3,898,581	$ 3,875,770	$ 22,811

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net (loss) income	$ (16,826)	$ 25,355
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	123,289	31,212
Gain on sales of operating properties, net	(3,168)	(26,207)
Straight-line rent	(4,031)	12
Compensation expense for equity awards	2,624	1,702
Amortization of debt fair value adjustments	(3,446)	(111)
Amortization of in-place lease liabilities	(583)	(479)
Changes in assets and liabilities:
Tenant receivables	2,446	3,806
Deferred costs and other assets	95	(3,178)
Accounts payable, accrued expenses, deferred revenue and other liabilities	(50,817)	(807)
Net cash provided by operating activities	49,583	31,305
Cash flows from investing activities:
Acquisition of interests in properties	(44,262)	0
Capital expenditures	(23,752)	(7,864)
Net proceeds from sales of land	0	39,933
Net proceeds from sales of operating properties	6,904	2,484
Small business loan repayments	226	212
Change in construction payables	(1,299)	(883)
Net cash (used in) provided by investing activities	(62,183)	33,882
Cash flows from financing activities:
Proceeds from issuance of common shares, net	14	17
Repurchases of common shares upon the vesting of restricted shares	(939)	(452)
Purchase of capped calls	0	(9,800)
Debt and equity issuance costs	(263)	(4,937)
Loan proceeds	80,000	175,000
Loan payments	(42,201)	(25,568)
Distributions paid – common shareholders	(41,600)	(12,992)
Distributions paid – redeemable noncontrolling interests	(584)	(511)
Net cash (used in) provided by financing activities	(5,573)	120,757
Net change in cash, cash equivalents and restricted cash	(18,173)	185,944
Cash, cash equivalents and restricted cash, beginning of period	100,363	46,586
Cash, cash equivalents and restricted cash, end of period	82,190	232,530
Non-cash investing and financing activities
Exchange of redeemable noncontrolling interests for common shares	0	2,062
Kite Realty Group, L.P.
Cash flows from operating activities:
Net (loss) income	(16,826)	25,355
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	123,289	31,212
Gain on sales of operating properties, net	(3,168)	(26,207)
Straight-line rent	(4,031)	12
Compensation expense for equity awards	2,624	1,702
Amortization of debt fair value adjustments	(3,446)	(111)
Amortization of in-place lease liabilities	(583)	(479)
Changes in assets and liabilities:
Tenant receivables	2,446	3,806
Deferred costs and other assets	95	(3,178)
Accounts payable, accrued expenses, deferred revenue and other liabilities	(50,817)	(807)
Net cash provided by operating activities	49,583	31,305
Cash flows from investing activities:
Acquisition of interests in properties	(44,262)	0
Capital expenditures	(23,752)	(7,864)
Net proceeds from sales of land	0	39,933
Net proceeds from sales of operating properties	6,904	2,484
Small business loan repayments	226	212
Change in construction payables	(1,299)	(883)
Net cash (used in) provided by investing activities	(62,183)	33,882
Cash flows from financing activities:
Proceeds from issuance of common shares, net	14	17
Repurchases of common shares upon the vesting of restricted shares	(939)	(452)
Purchase of capped calls	0	(9,800)
Debt and equity issuance costs	(263)	(4,937)
Loan proceeds	80,000	175,000
Loan payments	(42,201)	(25,568)
Distributions paid – common shareholders	(41,600)	(12,992)
Distributions paid – redeemable noncontrolling interests	(584)	(511)
Net cash (used in) provided by financing activities	(5,573)	120,757
Net change in cash, cash equivalents and restricted cash	(18,173)	185,944
Cash, cash equivalents and restricted cash, beginning of period	100,363	46,586
Cash, cash equivalents and restricted cash, end of period	82,190	232,530
Non-cash investing and financing activities
Exchange of redeemable noncontrolling interests for common shares	$ 0	$ 2,062

XML

ORGANIZATION AND BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND BASIS OF PRESENTATION

ORGANIZATION AND BASIS OF PRESENTATION

Kite Realty Group Trust (the “Parent Company”), through its majority-owned subsidiary, Kite Realty Group, L.P. (the “Operating Partnership”), owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of high-quality, open-air shopping centers and mixed-use assets in select markets in the United States. The terms “Company,” “we,” “us,” and “our” refer to the Parent Company and the Operating Partnership, collectively, and those entities owned or controlled by the Parent Company and/or the Operating Partnership.

The Operating Partnership was formed on August 16, 2004, when the Parent Company contributed properties and the net proceeds from an initial public offering of shares of its common stock to the Operating Partnership. The Parent Company was organized in Maryland in 2004 to succeed in the development, acquisition, construction and real estate businesses of its predecessor. We believe the Company qualifies as a real estate investment trust (“REIT”) under provisions of the Internal Revenue Code of 1986, as amended.

The Parent Company is the sole general partner of the Operating Partnership, and as of March 31, 2022 owned approximately 98.9% of the common partnership interests in the Operating Partnership (“General Partner Units”). The remaining 1.1% of the common partnership interests (“Limited Partner Units” and, together with the General Partner Units, the “Common Units”) were owned by the limited partners. As the sole general partner of the Operating Partnership, the Parent Company has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Operating Partnership. The Parent Company and the Operating Partnership are operated as one enterprise. The management of the Parent Company consists of the same members as the management of the Operating Partnership. As the sole general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have any significant assets other than its investment in the Operating Partnership.

The accompanying unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) may have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the presentation not misleading. The unaudited financial statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 include all adjustments, consisting of normal recurring adjustments, necessary in the opinion of management to present fairly the financial information set forth therein. The consolidated financial statements in this Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the combined Annual Report on Form 10-K of the Parent Company and the Operating Partnership for the year ended December 31, 2021.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reported period. Actual results could differ from these estimates. The results of operations for the interim periods are not necessarily indicative of the results that may be expected on an annual basis.

On October 22, 2021, we completed a merger with Retail Properties of America, Inc. (“RPAI”) in accordance with the Agreement and Plan of Merger dated July 18, 2021 (the “Merger Agreement”), by and among the Company, its wholly owned subsidiary KRG Oak, LLC (“Merger Sub”) and RPAI, pursuant to which RPAI merged with and into Merger Sub (the “Merger”). Immediately following the closing of the Merger, Merger Sub merged with and into the Operating Partnership so that all of the assets and liabilities of the Company continue to be held at or below the Operating Partnership level. The transaction value was approximately $4.7 billion, including the assumption of approximately $1.8 billion of debt. We acquired 100 operating retail properties and five active development projects through the Merger along with multiple parcels of entitled land for future value creation.

Pursuant to the terms of the Merger Agreement, each outstanding share of RPAI common stock converted into the right to receive 0.623 common shares of the Company plus cash in lieu of fractional Company shares. The aggregate value of the Merger consideration paid or payable to former holders of RPAI common stock was approximately $2.8 billion, excluding the value of RPAI restricted stock units that vested at closing and certain restricted share awards assumed by the Company at closing. In connection with the Merger, the Operating Partnership issued an equivalent amount of General Partner Units to the Parent Company.

As of March 31, 2022, we owned interests in 181 operating retail properties totaling approximately 28.8 million square feet and one office property with 0.3 million square feet. Of the 181 operating retail properties, 11 contain an office component. We also owned seven development projects under construction as of this date. Of the 181 operating retail properties, 178 are consolidated in these financial statements and the remaining three are accounted for under the equity method.

XML

CONSOLIDATIONS, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONSOLIDATIONS, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS

CONSOLIDATION, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS

Components of Investment Properties

The following table summarizes the composition of the Company’s investment properties as of March 31, 2022 and December 31, 2021:

	Balance as of
($ in thousands)	March 31, 2022		December 31, 2021
Land, buildings and improvements	$	7,581,145	$	7,543,376
Furniture, equipment and other	7,674		7,612
Construction in progress	38,762		41,360
Investment properties, at cost	$	7,627,581	$	7,592,348

Components of Rental Income including Allowance for Uncollectible Accounts

Rental income related to the Company’s operating leases is comprised of the following for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
Fixed contractual lease payments – operating leases	$	148,790	$	54,803
Variable lease payments – operating leases	37,025		13,929
Bad debt reserve	(571)		(1,309)
Straight-line rent adjustments	4,093		98
Straight-line rent reserve for uncollectibility	(62)		(110)
Amortization of in-place lease liabilities, net	583		479
Rental income	$	189,858	$	67,890

The Company makes estimates as to the collectability of its accounts receivable. In making these estimates, the Company reviews a variety of qualitative and quantitative data and considers such facts as the credit quality of our customer, historical write-off experience and current economic trends, to make a subjective determination. An allowance for uncollectible accounts, including future credit losses of the accrued straight-line rent receivables, is maintained for estimated losses resulting from the inability of certain tenants to meet contractual obligations under their lease agreements.

Short-Term Deposits

As of March 31, 2022, the Company had a $125.0 million short-term deposit held in a custody account at Bank of New York Mellon to fund 2022 debt maturities or other borrowings. The deposit balance, which approximates fair value, earned interest at a rate of the Federal Funds Rate plus 43 basis points and matured on April 7, 2022, the proceeds of which were used to repay borrowings on the Company’s revolving line of credit. Interest income on the deposit is recorded within “Other expense, net” on the accompanying consolidated statements of operations and comprehensive income.

Consolidation and Investments in Joint Ventures

The accompanying financial statements are presented on a consolidated basis and include all accounts of the Parent Company, the Operating Partnership, the taxable REIT subsidiaries (“TRSs”) of the Operating Partnership, subsidiaries of the

Operating Partnership that are controlled and any variable interest entities (“VIEs”) in which the Operating Partnership is the primary beneficiary. As of March 31, 2022, we owned investments in three consolidated joint ventures that were VIEs in which the partners did not have substantive participating rights and we were the primary beneficiary. As of March 31, 2022, these consolidated VIEs had mortgage debt of $28.9 million, which were secured by assets of the VIEs totaling $116.6 million. The Operating Partnership guarantees the mortgage debt of these VIEs.

The Operating Partnership is considered a VIE as the limited partners do not hold kick-out rights or substantive participating rights. The Parent Company consolidates the Operating Partnership as it is the primary beneficiary.

Income Taxes and REIT Compliance

Parent Company

The Parent Company, which is considered a corporation for U.S. federal income tax purposes, has been organized and operated, and intends to continue to operate, in a manner that will enable it to maintain its qualification as a REIT for U.S. federal income tax purposes. As a result, it generally will not be subject to U.S. federal income tax on the earnings that it distributes to the extent it distributes its “REIT taxable income” (determined before the deduction for dividends paid and excluding net capital gains) to shareholders of the Parent Company and meets certain other requirements on a recurring basis. To the extent that it satisfies this distribution requirement, but distributes less than 100% of its taxable income, it will be subject to U.S. federal corporate income tax on its undistributed REIT taxable income. REITs are subject to a number of organizational and operational requirements. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income tax on its taxable income at regular corporate rates for a period of four years following the year in which qualification is lost. We may also be subject to certain U.S. federal, state and local taxes on our income and property and to U.S. federal income and excise taxes on our undistributed taxable income even if the Parent Company does qualify as a REIT. The Operating Partnership intends to continue to make distributions to the Parent Company in amounts sufficient to assist the Parent Company in adhering to REIT requirements and maintaining its REIT status.

We have elected to treat Kite Realty Holdings, LLC as a TRS of the Operating Partnership. In addition, in connection with the Merger, we assumed RPAI’s existing TRS, IWR Protective Corporation, as a TRS of the Operating Partnership and we may elect to treat other subsidiaries as TRSs in the future. This election enables us to receive income and provide services that would otherwise be impermissible for a REIT. Deferred tax assets and liabilities are established for temporary differences between the financial reporting bases and the tax bases of assets and liabilities at the tax rates expected to be in effect when the temporary differences reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Operating Partnership

The allocated share of income and loss, other than the operations of our TRSs, is included in the income tax returns of the Operating Partnership’s partners. Accordingly, the only U.S. federal income taxes included in the accompanying consolidated financial statements are in connection with the TRSs.

Noncontrolling Interests

We report the non-redeemable noncontrolling interests in subsidiaries as equity, and the amount of consolidated net income attributable to these noncontrolling interests is set forth separately in the consolidated financial statements. The following table summarizes the non-redeemable noncontrolling interests in consolidated properties for the three months ended March 31, 2022 and 2021:

($ in thousands)	2022		2021
Noncontrolling interests balance as of January 1,	$	5,146	$	698
Net loss allocable to noncontrolling interests, excluding redeemable noncontrolling interests	12		—
Noncontrolling interests balance as of March 31,	$	5,158	$	698

Noncontrolling Interests – Joint Venture

Prior to the Merger with RPAI, RPAI entered into a joint venture related to the development, ownership and operation of the multifamily rental portion of the expansion project at One Loudoun Downtown – Pads G & H. The Company owns 90% of the joint venture.

As of March 31, 2022, the Company has funded $0.7 million of the partner’s development costs related to One Loudoun Downtown – Pads G & H through a loan provided by the Company to the joint venture. The loan is secured by the joint venture project, is required to be repaid subsequent to the completion of construction and stabilization of the project and is eliminated upon consolidation. Under terms defined in the joint venture agreement, after construction completion and stabilization of the development project, the Company has the ability to call, and the joint venture partner has the ability to put to the Company, subject to certain conditions, the joint venture partner’s interest in the joint venture at fair value.

The joint venture is considered a VIE primarily because the Company’s joint venture partner does not have substantive kick-out rights or substantive participating rights. The Company is considered the primary beneficiary as it has a controlling financial interest in the joint venture. As such, the Company has consolidated this joint venture and presented the joint venture partners’ interests as noncontrolling interests.

Redeemable Noncontrolling Interests – Limited Partners

Limited Partner Units are redeemable noncontrolling interests in the Operating Partnership. We classify redeemable noncontrolling interests in the Operating Partnership in the accompanying consolidated balance sheets outside of permanent equity because we may be required to pay cash to holders of Limited Partner Units upon redemption of their interests in the Operating Partnership or deliver registered shares upon their conversion. The carrying amount of the redeemable noncontrolling interests in the Operating Partnership is reflected at the greater of historical book value or redemption value with a corresponding adjustment to additional paid-in capital. As of March 31, 2022 and December 31, 2021, the redemption value of the redeemable noncontrolling interests in the Operating Partnership exceeded the historical book value, and the balances were accordingly adjusted to redemption value.

We allocate net operating results of the Operating Partnership after noncontrolling interests in the consolidated properties based on the partners’ respective weighted average ownership interest. We adjust the redeemable noncontrolling interests in the Operating Partnership at the end of each reporting period to reflect their interests in the Operating Partnership or redemption value. This adjustment is reflected in our shareholders’ and Parent Company’s equity. For the three months ended March 31, 2022 and 2021, the weighted average interests of the Parent Company and the limited partners in the Operating Partnership were as follows:

	Three Months Ended March 31,
	2022		2021
Parent Company’s weighted average interest in Operating Partnership	98.9	%	97.1	%
Limited partners’ weighted average interests in Operating Partnership	1.1	%	2.9	%

At March 31, 2022 and December 31, 2021, the Parent Company’s interest and the limited partners’ redeemable noncontrolling ownership interests in the Operating Partnership were 98.9% and 1.1%.

Concurrent with the Parent Company’s initial public offering and related formation transactions, certain individuals received Limited Partner Units of the Operating Partnership in exchange for their interests in certain properties. The limited partners have the right to redeem Limited Partner Units for cash or, at the Parent Company’s election, common shares of the Parent Company in an amount equal to the market value of an equivalent number of common shares of the Parent Company at the time of redemption. Such common shares must be registered, which is not fully in the Parent Company’s control. Therefore, the limited partners’ interest is not reflected in permanent equity. The Parent Company also has the right to redeem the Limited Partner Units directly from the limited partner in exchange for either cash in the amount specified above or a number of its common shares equal to the number of Limited Partner Units being redeemed.

There were 2,516,282 and 2,377,777 Limited Partner Units outstanding as of March 31, 2022 and December 31, 2021, respectively. The increase in Limited Partner Units outstanding from December 31, 2021 is due to non-cash compensation awards made to our executive officers in the form of Limited Partner Units.

Redeemable Noncontrolling Interests – Subsidiaries

Prior to the merger with Inland Diversified Real Estate Trust, Inc. (“Inland Diversified”) in 2014, Inland Diversified formed joint ventures with the previous owners of certain properties and issued Class B units in three joint ventures that indirectly own those properties. The Class B units related to one of these three joint ventures remain outstanding and are accounted for as noncontrolling interests in the remaining venture. The remaining Class B units will become redeemable at the respective partner’s election in October 2022 and the fulfillment of certain redemption criteria. Beginning in November 2022, the Class B units can be redeemed at the election of either our partner or us for cash or Limited Partner Units in the Operating

Partnership. The Class B units do not have a maturity date, and none are mandatorily redeemable unless either party has elected for the units to be redeemed. We consolidate this joint venture because we control the decision-making and our joint venture partner has limited protective rights.

We classify the redeemable noncontrolling interests related to the remaining Class B units in the accompanying consolidated balance sheets outside of permanent equity because, under certain circumstances, we may be required to pay cash to Class B unitholders in this subsidiary upon redemption of their interests. The carrying amount of these redeemable noncontrolling interests is required to be reflected at the greater of initial book value or redemption value with a corresponding adjustment to additional paid-in capital. As of March 31, 2022 and December 31, 2021, the redemption amounts of these interests did not exceed their fair value nor did they exceed the initial book value.

The redeemable noncontrolling interests in the Operating Partnership and subsidiaries for the three months ended March 31, 2022 and 2021 were as follows:

($ in thousands)	2022		2021
Redeemable noncontrolling interests balance as of January 1,	$	55,173	$	43,275
Net (loss) income allocable to redeemable noncontrolling interests	(34)		778
Distributions declared to redeemable noncontrolling interests	(584)		(511)
Other, net including adjustments to redemption value	5,821		8,463
Total limited partners’ interests in Operating Partnership and other redeemable noncontrolling interests balance as of March 31,	$	60,376	$	52,005
Limited partners’ interests in Operating Partnership	$	50,306	$	41,935
Other redeemable noncontrolling interests in certain subsidiaries	10,070		10,070
Total limited partners’ interests in Operating Partnership and other redeemable noncontrolling interests balance as of March 31,	$	60,376	$	52,005

Fair Value Measurements

We follow the framework established under Financial Accounting Standards Board (“FASB”) ASC 820, Fair Value Measurements and Disclosures, for measuring fair value of non-financial assets and liabilities that are not required or permitted to be measured at fair value on a recurring basis but only in certain circumstances, such as a business combination or upon determination of an impairment.

Assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

•Level 1 fair value inputs are quoted prices in active markets for identical instruments to which we have access.

•Level 2 fair value inputs are inputs other than quoted prices included in Level 1 that are observable for similar instruments, either directly or indirectly, and appropriately consider counterparty creditworthiness in the valuations.

•Level 3 fair value inputs reflect our best estimate of inputs and assumptions market participants would use in pricing an instrument at the measurement date. The inputs are unobservable in the market and significant to the valuation estimate.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Effects of Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. In March 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the

corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

XML

ACQUISITIONS

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS

ACQUISITIONS

RPAI Merger

On October 22, 2021, we completed a Merger with RPAI pursuant to which RPAI merged with and into Merger Sub, with the Company continuing as the surviving public company. Immediately following the closing of the Merger, Merger Sub merged with and into the Operating Partnership so that all of the assets and liabilities of the Company continue to be held at or below the Operating Partnership level. The aggregate value of the Merger consideration paid or payable to former holders of RPAI common stock was approximately $2.8 billion, excluding the value of RPAI restricted stock units that vested at closing and certain restricted share awards assumed by the Company at closing. The total purchase price was calculated based on the closing price of the Company’s common stock on October 21, 2021, the last business day prior to the effective time of the Merger, which was $21.18 per share. At the effective time of the Merger, each share of RPAI common stock issued and outstanding immediately prior to the effective time was converted into the right to receive 0.623 newly issued Company common shares plus cash in lieu of fractional Company shares. In addition, holders of (i) options to purchase shares of RPAI common stock, (ii) certain awards of restricted shares of RPAI common stock (as agreed in accordance with the Merger Agreement), and (iii) restricted stock units representing the right to vest in and be issued shares of RPAI common stock became entitled to receive cash and/or Company common shares in accordance with the terms of the Merger Agreement. The Company assumed certain existing awards of restricted shares of RPAI common stock, each of which were converted into 0.623 awards of restricted Company common shares plus cash in lieu of fractional Company shares in accordance with the Merger Agreement. In connection with the Merger, the Operating Partnership issued an equivalent amount of General Partner Units to the Parent Company. The number of RPAI common stock outstanding as of October 21, 2021 converted to shares of the Company’s common stock was determined as follows:

RPAI common stock outstanding as of October 21, 2021	214,797,869
Exchange ratio	0.623
Company common shares issued for outstanding RPAI common stock	133,814,066
Company common shares issued for RPAI restricted stock units	1,117,399
Total Company common shares issued	134,931,465

The following table presents the purchase price and total value of equity consideration paid by the Company at the close of the Merger:

(in thousands, except share price)	Price of Company common shares		Equity Consideration Given (Company common shares issued)	Total Value of Stock Consideration(1)
As of October 21, 2021	$	21.18	134,931	$	2,847,369

(1)The total value of stock consideration is the total of the common shares issued multiplied by the closing price of the Company’s common stock on October 21, 2021 excluding the value of certain RPAI restricted stock that vested at the closing of the Merger and share awards assumed by the Company at the closing of the Merger.

As a result of the Merger, the Company acquired 100 operating retail properties and five active development projects under construction along with multiple parcels of entitled land for future value creation. During the three months ended March 31, 2022, the Company incurred $0.9 million of merger and acquisition costs consisting primarily of professional fees and technology costs, which are recorded within “Merger and acquisition costs” in the accompanying consolidated statements of operations and comprehensive income. In addition, the Company assumed approximately $1.8 billion of debt in connection with the Merger.

“Rental income” and “Net income attributable to common shareholders” in the accompanying consolidated statements of operations and comprehensive income include revenues from the RPAI portfolio of $123.6 million and net loss of $20.9 million for the three months ended March 31, 2022, which includes $92.9 million of depreciation and amortization, as a result of the Merger.

Purchase Price Allocation

In accordance with ASC 805-10, Business Combinations, the Company accounted for the Merger as a business combination using the acquisition method of accounting. Based on the value of the common shares issued, the total fair value of the assets acquired and liabilities assumed in the Merger was $2.8 billion as of October 22, 2021, the date of the Merger.

The Company used the following valuation methodologies, inputs and assumptions to estimate the fair value of the assets acquired and liabilities assumed:

•Investment properties: The Company estimated the fair value of the buildings on an as-if-vacant basis using either a direct capitalization method or a discounted cash flow analysis. Comparable market data, real estate tax assessments and independent appraisals were used in estimating the fair value of the land acquired. These valuation methodologies are based on Level 2 and Level 3 inputs in the fair value hierarchy, such as estimates of future income growth, capitalization rates and cash flow projections at the respective properties.

•Acquired lease intangible assets: The Company estimated the fair value of its above-market and below-market in-place leases based on the present value (using a discount rate that reflects the risk associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over the remaining non-cancelable term of the leases. Any below-market renewal options are also considered in the in-place lease values. This valuation methodology is based on Level 3 inputs in the fair value hierarchy.

•In-place lease liabilities: The Company estimated the fair value of its in-place leases using independent and internal sources, which are methods similar to those used by independent appraisers. Factors we consider in our analysis include an estimate of costs to execute similar leases including tenant improvements, leasing commissions and foregone costs and rent received during the estimated lease-up period as if the space was vacant. This valuation methodology is based on Level 3 inputs in the fair value hierarchy.

•Mortgage and other indebtedness: The Company estimated the fair value of the secured and unsecured debt assumed, including related derivative instruments, using third party and independent sources for our estimates. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining term of the loan using the interest method. This valuation methodology is based on Level 2 and Level 3 inputs in the fair value hierarchy.

The range of the most significant Level 3 assumptions utilized in determining the value of the real estate and related assets acquired through the Merger with RPAI are as follows:

	Range of Assumptions
Net rental rate per square foot – Anchors	$4.00 to $45.00
Net rental rate per square foot – Small Shops	$7.00 to $140.00
Capitalization rate	5.50% to 12.00%

The following table summarizes the final purchase price allocation, including the acquisition date fair value of the tangible and intangible assets acquired and liabilities assumed:

($ in thousands)	Purchase Price Allocation
Investment properties	$	4,425,254
Acquired lease intangible assets	535,465
Cash, accounts receivable and other assets	84,632
Total assets acquired	5,045,351
Mortgage and other indebtedness, net	(1,848,476)
Accounts payable, other liabilities, tenant security deposits and prepaid rent	(176,391)
In-place lease liabilities	(168,652)
Noncontrolling interests	(4,463)
Total liabilities assumed	(2,197,982)
Total purchase price	$	2,847,369

The following table details the weighted average amortization periods, in years, of the purchase price allocated to real estate and related intangible assets and liabilities acquired arising from the Merger:

	Weighted Average Amortization Period (in years)
Land	10.2
Building	18.8
Tenant improvements	6.7
In-place lease intangibles	5.5
Above-market leases	5.7
Below-market leases (including below-market option periods)	20.5
Fair market value of debt adjustments	6.8

Pro Forma Financial Information (unaudited)

The pro forma financial information set forth below is based upon the Company’s historical consolidated statements of operations for the three months ended March 31, 2021, adjusted to give effect for the properties assumed through the Merger as if they were acquired as of January 1, 2021. The pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of income would have been, nor does it purport to represent the results of income for future periods.

($ in thousands)	Three Months Ended March 31, 2021
Rental income	$	183,344
Net loss	$	(16,874)
Net loss attributable to common shareholders	$	(16,688)
Net loss attributable to common shareholders per common share:
Basic(1)	$	(0.08)
Diluted(1)	$	(0.08)

Asset Acquisitions

The Company closed on the following asset acquisition during the three months ended March 31, 2022:

Date	Property Name	Metropolitan Statistical Area (MSA)	Property Type	Square Footage	Acquisition Price
February 16, 2022	Pebble Marketplace	Las Vegas	Multi-tenant retail	85,796	$	44,100

The above acquisition was funded using a combination of available cash on hand and proceeds from the Company’s unsecured revolving line of credit. Substantially all of the purchase price was allocated to investment properties. The Company did not acquire any properties during the three months ended March 31, 2021.

XML

DISPOSITIONS	3 Months Ended
	Mar. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
DISPOSITIONS	DISPOSITIONSThe Company did not sell any operating properties during the three months ended March 31, 2022. The Company sold a portion of Hamilton Crossing Centre, a redevelopment property located in the Indianapolis MSA, for a sales price of $6.9 million and a net gain of $3.2 million during the three months ended March 31, 2022.During the three months ended March 31, 2021, the Company sold sixteen ground leases for gross proceeds of $40.0 million and a net gain of $26.2 million. A portion of the proceeds was used to pay down our unsecured revolving line of credit

XML

DEFERRED COSTS AND INTANGIBLES, NET

3 Months Ended

Mar. 31, 2022

Deferred Costs [Abstract]

DEFERRED COSTS AND INTANGIBLES, NET

DEFERRED COSTS AND INTANGIBLES, NET

Deferred costs consist primarily of acquired lease intangible assets, broker fees and capitalized internal commissions incurred in connection with lease originations. Deferred leasing costs, lease intangibles and similar costs are amortized on a straight-line basis over the terms of the related leases. As of March 31, 2022 and December 31, 2021, deferred costs consisted of the following:  

($ in thousands)	March 31, 2022		December 31, 2021
Acquired lease intangible assets	$	576,500	$	567,149
Deferred leasing costs and other	56,832		55,817
	633,332		622,966
Less: accumulated amortization	(120,921)		(81,448)
Total	$	512,411	$	541,518

 Amortization of deferred leasing costs, lease intangibles and other is included within “Depreciation and amortization” in the accompanying consolidated statements of operations and comprehensive income. The amortization of above-market lease intangibles is included as a reduction to “Rental income” in the accompanying consolidated statements of operations and comprehensive income. The amounts of such amortization included in the accompanying consolidated statements of operations are as follows:

	Three Months Ended March 31,
($ in thousands)	2022		2021
Amortization of deferred leasing costs, lease intangibles and other	$	42,829	$	2,832
Amortization of above-market lease intangibles	$	3,275	$	244

XML

DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES

DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES

Deferred revenue and other liabilities consist of the unamortized fair value of below-market lease liabilities recorded in connection with purchase accounting, retainage payables for development and redevelopment projects, tenant rent payments received in advance of the month in which they are due, and lease liabilities recorded upon adoption of ASU 2016-02, Leases (Topic 842). The amortization of below-market lease liabilities is recognized as revenue over the remaining life of the leases (including option periods for leases with below-market renewal options) through 2085. Tenant rent payments received in advance are recognized as revenue in the period to which they apply, which is typically the month following their receipt.

As of March 31, 2022 and December 31, 2021, deferred revenue, intangibles, net and other liabilities consisted of the following:

($ in thousands)	March 31, 2022		December 31, 2021
Unamortized in-place lease liabilities	$	200,950	$	210,261
Retainages payable and other	8,815		10,796
Tenant rents received in advance	26,138		30,125
Lease liabilities	70,365		70,237
Total	$	306,268	$	321,419

The amortization of below-market lease intangibles is included as a component of “Rental income” in the accompanying consolidated statements of operations and comprehensive income and totaled $3.9 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively.

XML

MORTGAGE AND OTHER INDEBTEDNESS

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

MORTGAGE AND OTHER INDEBTEDNESS

MORTGAGE AND OTHER INDEBTEDNESS

The following table summarizes the Company’s indebtedness as of March 31, 2022 and December 31, 2021:

($ in thousands)	March 31, 2022		December 31, 2021
Mortgages payable	$	350,383	$	392,590
Senior unsecured notes	1,924,635		1,924,635
Unsecured term loans	720,000		720,000
Revolving line of credit	135,000		55,000
	3,130,018		3,092,225
Unamortized discounts and premiums, net	59,360		69,425
Unamortized debt issuance costs, net	(10,260)		(10,842)
Total mortgage and other indebtedness, net	$	3,179,118	$	3,150,808

Consolidated indebtedness, including weighted average interest rates and weighted average maturities as of March 31, 2022, considering the impact of interest rate swaps, is summarized below:

($ in thousands)	Amount Outstanding		Ratio		Weighted Average Interest Rate		Weighted Average Years to Maturity
Fixed rate debt(1)	$	2,811,125	90	%	4.00	%	4.4
Variable rate debt(2)	318,893		10	%	3.11	%	4.3
Debt discounts, premiums and issuance costs, net	49,100		N/A		N/A		N/A
Total	$	3,179,118	100	%	3.90	%	4.4

(1)Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of March 31, 2022, $720.0 million in variable rate debt is hedged to a fixed rate for a weighted average of 3.0 years.

(2)Variable rate debt includes the portion of fixed rate debt that has been hedged by interest rate swaps. As of March 31, 2022, $155.0 million in fixed rate debt is hedged to a floating rate for a weighted average of 3.4 years.

Mortgages Payable 

The following table summarizes the Company’s mortgages payable:

	March 31, 2022					December 31, 2021
($ in thousands)	Balance		Weighted Average Interest Rate		Weighted Average Years to Maturity	Balance		Weighted Average Interest Rate		Weighted Average Years to Maturity
Fixed rate mortgages payable(1)	$	321,490	4.09	%	1.6	$	363,577	4.13	%	1.7
Variable rate mortgage payable(2)	28,893		2.05	%	1.3	29,013		1.70	%	0.1
Total mortgages payable	$	350,383				$	392,590

(1)The fixed rate mortgages had interest rates ranging from 3.75% to 5.73% as of March 31, 2022 and December 31, 2021.

(2)The interest rate on the variable rate mortgage is based on LIBOR plus 160 basis points. The one-month LIBOR rate was 0.45% and 0.10% as of March 31, 2022 and December 31, 2021, respectively.

Mortgages payable are secured by certain real estate and, in some cases, by guarantees from the Operating Partnership, are generally due in monthly installments of principal and interest and mature over various terms through 2032. During the three months ended March 31, 2022, we repaid a $41.2 million mortgage payable that had a fixed interest rate of 4.43% and made scheduled principal payments of $1.0 million related to amortizing loans.

Unsecured Notes

The following table summarizes the Company’s senior unsecured notes and exchangeable senior notes:

		March 31, 2022				December 31, 2021
($ in thousands)	Maturity Date	Balance		Interest Rate		Balance		Interest Rate
Senior notes – 4.23% due 2023	September 10, 2023	$	95,000	4.23	%	$	95,000	4.23	%
Senior notes – 4.58% due 2024(1)	June 30, 2024	149,635		4.58	%	149,635		4.58	%
Senior notes – 4.00% due 2025(2)	March 15, 2025	350,000		4.00	%	350,000		4.00	%
Senior notes – LIBOR + 3.65% due 2025(3)	September 10, 2025	80,000		4.61	%	80,000		3.86	%
Senior notes – 4.08% due 2026(1)	September 30, 2026	100,000		4.08	%	100,000		4.08	%
Senior notes – 4.00% due 2026	October 1, 2026	300,000		4.00	%	300,000		4.00	%
Senior exchangeable notes – 0.75% due 2027	April 1, 2027	175,000		0.75	%	175,000		0.75	%
Senior notes – LIBOR + 3.75% due 2027(4)	September 10, 2027	75,000		4.71	%	75,000		3.96	%
Senior notes – 4.24% due 2028(1)	December 28, 2028	100,000		4.24	%	100,000		4.24	%
Senior notes – 4.82% due 2029(1)	June 28, 2029	100,000		4.82	%	100,000		4.82	%
Senior notes – 4.75% due 2030(2)	September 15, 2030	400,000		4.75	%	400,000		4.75	%
Total senior unsecured notes		$	1,924,635			$	1,924,635

(1)Private placement notes assumed in connection with the Merger.

(2)Publicly placed notes assumed in connection with the Merger.

(3)$80,000 of 4.47% senior unsecured notes has been swapped to a variable rate of three-month LIBOR plus 3.65% through September 10, 2025.

(4)$75,000 of 4.57% senior unsecured notes has been swapped to a variable rate of three-month LIBOR plus 3.75% through September 10, 2025.

Unsecured Term Loans and Revolving Line of Credit

The following table summarizes the Company’s term loans and revolving line of credit:

		March 31, 2022				December 31, 2021
($ in thousands)	Maturity Date	Balance		Interest Rate		Balance		Interest Rate
Unsecured term loan due 2023 – fixed rate(1)(2)	November 22, 2023	$	200,000	4.10	%	$	200,000	4.10	%
Unsecured term loan due 2024 – fixed rate(1)(3)	July 17, 2024	120,000		2.88	%	120,000		2.88	%
Unsecured term loan due 2025 – fixed rate(4)(5)	October 24, 2025	250,000		5.09	%	250,000		5.09	%
Unsecured term loan due 2026 – fixed rate(1)(6)	July 17, 2026	150,000		2.97	%	150,000		2.97	%
Total unsecured term loans		$	720,000			$	720,000
Unsecured credit facility revolving line of credit – variable rate(1)(7)	January 8, 2026	$	135,000	1.55	%	$	55,000	1.20	%

(1)Unsecured term loans and revolving line of credit assumed in connection with the Merger.

(2)$200,000 of LIBOR-based variable rate debt has been swapped to a fixed rate 2.85% plus a credit spread based on a leverage grid ranging from 1.20% to 1.85% through November 22, 2023. The applicable credit spread was 1.25% as of March 31, 2022 and December 31, 2021.

(3)$120,000 of LIBOR-based variable rate debt has been swapped to a fixed rate 1.68% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through July 17, 2024. The applicable credit spread was 1.20% as of March 31, 2022 and December 31, 2021.

(4)$250,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 5.09% through October 24, 2025.

(5)The maturity date of the term loan may be extended for up to three additional periods of one year at the Operating Partnership’s option, subject to certain conditions.

(6)$150,000 of LIBOR-based variable rate debt has been swapped to a fixed rate 1.77% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through July 17, 2026. The applicable credit spread was 1.20% as of March 31, 2022 and December 31, 2021.

(7)The revolving line of credit has two six-month extension options that the Company can exercise, at its election, subject to (i) customary representations and warranties, including, but not limited to, the absence of an event of default as defined in the unsecured credit

agreement and (ii) payment of an extension fee equal to 0.075% of the revolving line of credit capacity. Subsequent to March 31, 2022, the $125.0 million short-term deposit was used to repay outstanding borrowings.

Unsecured Revolving Credit Facility

On October 22, 2021, in connection with the Merger, the Operating Partnership (as successor by merger to RPAI), as borrower, entered into the First Amendment (the “First Amendment”) to the Credit Agreement (as defined below) with KeyBank National Association (“KeyBank”), as administrative agent, and the lenders party thereto. The First Amendment amends the Sixth Amended and Restated Credit Agreement, dated as of July 8, 2021 (as amended, the “Credit Agreement”), among RPAI, as borrower, KeyBank, as administrative agent, and the lenders from time to time party thereto, which provides for an $850.0 million unsecured revolving credit facility (the “Revolving Facility”) with a scheduled maturity date of January 8, 2026 (which maturity date may be extended for up to two additional periods of six months at the Operating Partnership’s option, subject to certain conditions).

Under the Credit Agreement, the Operating Partnership has the option to increase the Revolving Facility to an aggregate committed amount of $1.6 billion upon the Operating Partnership’s request, subject to certain conditions, including obtaining commitments from any one or more lenders, whether or not currently party to the Credit Agreement, to provide such increased amounts.

Borrowings under the Revolving Facility bear interest at a rate per annum equal to LIBOR or the alternative base rate plus a margin based on the Operating Partnership’s leverage ratio or credit rating, respectively, plus a facility fee based on the Operating Partnership’s leverage ratio or credit rating, respectively. The Revolving Facility is currently priced on the leverage-based pricing grid. In accordance with the Credit Agreement, the credit spread set forth in the leverage grid resets quarterly based on the Company’s leverage, as calculated at the previous quarter end. The Company may irrevocably elect to convert to the ratings-based pricing grid at any time. As of March 31, 2022, making such an election would have resulted in a lower interest rate; however, the Company has not made the election to convert to the ratings-based pricing grid. The Credit Agreement includes a sustainability metric based on targeted greenhouse gas emission reductions, which results in a reduction of the otherwise applicable interest rate margin by one basis point upon achievement of targets set forth therein.

The following table summarizes the key terms of the Revolving Facility:

				Leverage-Based Pricing		Investment Grade Pricing
Credit Agreement	Maturity Date	Extension Option	Extension Fee	Credit Spread	Facility Fee	Credit Spread	Facility Fee
$850,000 unsecured revolving line of credit	1/8/2026	2 six-month	0.075%	1.05%–1.50%	0.15%–0.30%	0.725%–1.40%	0.125%–0.30%

The Operating Partnership’s ability to borrow under the Credit Agreement is subject to ongoing compliance by the Operating Partnership and its subsidiaries with various restrictive covenants, including with respect to liens, transactions with affiliates, dividends, mergers and asset sales. In addition, the Credit Agreement requires that the Operating Partnership satisfy certain financial covenants, including (i) a maximum leverage ratio; (ii) a minimum fixed charge coverage ratio; (iii) a maximum secured indebtedness ratio; (iv) a maximum unsecured leverage ratio; and (v) a minimum unencumbered interest coverage ratio. As of March 31, 2022, we were in compliance with all such covenants.

As of March 31, 2022, we had letters of credit outstanding which totaled $1.5 million, against which no amounts were advanced as of March 31, 2022.

Unsecured Term Loans

On October 22, 2021, in connection with the Merger, the Operating Partnership (as successor by merger to RPAI) assumed all of RPAI’s outstanding $470.0 million aggregate principal of unsecured term loans (“Unsecured Term Loans”). The Unsecured Term Loans are currently priced on a leverage-based pricing grid. In accordance with the respective term loan agreements, the credit spread set forth in the leverage grid resets quarterly based on the Company’s leverage, as calculated at the previous quarter end. The Company may irrevocably elect to convert to a ratings-based pricing grid at any time. As of March 31, 2022, the Company has not made the election to convert to a ratings-based pricing grid.

The following table summarizes the key terms of the Unsecured Term Loans assumed:

Unsecured Term Loans Assumed	Maturity Date	Leverage-Based Pricing Credit Spread	Investment Grade Pricing Credit Spread
$200,000 unsecured term loan due 2023	11/22/2023	1.20% – 1.85%	0.85% – 1.65%
$120,000 unsecured term loan due 2024	7/17/2024	1.20% – 1.70%	0.80% – 1.65%
$150,000 unsecured term loan due 2026	7/17/2026	1.20% – 1.70%	0.75% – 1.60%

Under the agreement related to the $120.0 million and $150.0 million term loans, the Operating Partnership has the option to increase each of the term loans to $250.0 million upon the Operating Partnership’s request, subject to certain conditions, including obtaining commitments from any one or more lenders, whether or not currently party to the term loan agreement, to provide such increased amounts. In addition, under the agreement related to the $200.0 million term loan, the Operating Partnership has the option to increase the term loan to $300.0 million upon the Operating Partnership’s request, subject to certain conditions, including obtaining commitments from any one or more lenders, whether or not currently party to the term loan agreement, to provide such increased amounts.

The agreements related to the Unsecured Term Loans assumed in the Merger contain representations, financial and other affirmative and negative covenants and events of default that are substantially similar to those contained in the Credit Agreement. The agreement related to the $150.0 million term loan includes a sustainability metric based on targeted greenhouse gas emission reductions, which results in a reduction of the otherwise applicable interest rate margin by one basis point upon achievement of targets set forth therein.

On October 25, 2018, the Operating Partnership entered into a Term Loan Agreement (the “Agreement”) with KeyBank National Association, as Administrative Agent, and the other lenders party thereto, providing for an unsecured term loan facility of up to $250.0 million (the “$250M Term Loan”). The $250M Term Loan ranks pari passu with the Operating Partnership’s existing Revolving Facility and other unsecured indebtedness of the Operating Partnership.

The $250M Term Loan has a scheduled maturity date of October 24, 2025, which maturity date may be extended for up to three additional periods of one year at the Operating Partnership’s option, subject to certain conditions.

The Operating Partnership has the option to increase the $250M Term Loan to $300.0 million, subject to certain conditions, including obtaining commitments from any one or more lenders, whether or not currently party to the Agreement, to provide such increased amounts. The Operating Partnership is permitted to prepay the $250M Term Loan in whole or in part, at any time, subject to a prepayment fee if prepaid on or before October 25, 2023.

Debt Issuance Costs

Debt issuance costs are amortized on a straight-line basis over the terms of the respective loan agreements. The following amounts of amortization of debt issuance costs are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income:

	Three Months Ended March 31,
($ in thousands)	2022		2021
Amortization of debt issuance costs	$	650	$	578

Fair Value of Fixed and Variable Rate Debt

As of March 31, 2022, the estimated fair value of fixed rate debt was $2.3 billion compared to the book value of $2.2 billion. The fair value was estimated using Level 2 and 3 inputs with cash flows discounted at current borrowing rates for similar instruments, which ranged from 3.85% to 5.26%. As of March 31, 2022, the estimated fair value of variable rate debt was $886.9 million compared to the book value of $883.8 million. The fair value was estimated using Level 2 and 3 inputs with cash flows discounted at current borrowing rates for similar instruments, which ranged from 1.55% to 3.45%.

XML

DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME

DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOMEIn order to manage potential future variable interest rate risk, we enter into interest rate derivative agreements from time to time. We do not use interest rate derivative agreements for trading or speculative purposes. The agreements with each of our derivative counterparties provide that, in the event of default on any of our indebtedness, we could also be declared in default on our derivative obligations.

As of March 31, 2022, we were party to 12 cash flow derivative agreements with notional amounts totaling $720.0 million, which includes $470.0 million of interest rate swaps assumed in connection with the Merger. These derivative agreements effectively fix the interest rate underlying certain variable rate debt instruments over expiration dates through 2026. Using a weighted average interest rate spread over LIBOR on all variable rate debt resulted in fixing the weighted average interest rate at 3.72%.

As of March 31, 2022, we were also party to two fair value derivative agreements with notional amounts totaling $155.0 million that swap a blended fixed rate of 4.52% for a blended floating rate of LIBOR plus 3.70% with an expiration date of September 10, 2025.

In December 2021, we entered into two forward-starting interest rate swap contracts with notional amounts totaling $150.0 million that swap a floating rate of compound Secured Overnight Financing Rate (“SOFR”) for a fixed rate of 1.356% with an effective date of June 1, 2022 and an expiration date of June 1, 2032. As of March 31, 2022, the estimated fair value of the forward-starting swaps represented an asset of $10.5 million and is reflected within “Prepaid and other assets” in the accompanying consolidated balance sheets.

As of March 31, 2022, the estimated fair value of our interest rate derivatives represented an asset of $5.6 million and a liability of $17.8 million, including accrued interest of $1.2 million. The derivative assets are reflected within “Prepaid and other assets” and the derivative liabilities are reflected within “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets. As of December 31, 2021, the estimated fair value of our interest rate derivatives represented a liability of $35.7 million, including accrued interest of $1.0 million, which is reflected within “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to earnings over time as the hedged items are recognized in earnings. Approximately $4.1 million and $1.3 million was reclassified as a reduction to earnings during the three months ended March 31, 2022 and 2021, respectively. As interest payments on our derivatives are made over the next 12 months, we estimate the decrease to interest expense to be $2.2 million, assuming the current LIBOR and SOFR curves.

Unrealized gains and losses on our interest rate derivative agreements are the only components of the change in accumulated other comprehensive loss.

XML

SHAREHOLDERS’ EQUITY

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

SHAREHOLDERS’ EQUITY

SHAREHOLDERS’ EQUITY

Distributions

Our Board of Trustees declared a cash distribution of $0.20 per common share and Common Unit for the first quarter of 2022. This distribution was paid on April 15, 2022 to common shareholders and Common Unit holders of record as of April 8, 2022.

At-The-Market Offering Program

On February 23, 2021, the Company and the Operating Partnership entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with each of BofA Securities, Inc., Citigroup Global Markets Inc., KeyBanc Capital Markets Inc. and Raymond James & Associates, Inc., pursuant to which the Company may sell, from time to time, up to an aggregate sales price of $150.0 million of its common shares of beneficial interest, $0.01 par value per share under an at-the-market offering program (the “ATM Program”). On November 30, 2021, the Company and the Operating Partnership amended the Equity Distribution Agreement to reflect their filing of a shelf registration statement on November 16, 2021 with the SEC. As of March 31, 2022, the Company has not sold any common shares under the ATM Program. The Operating Partnership intends to use the net proceeds, if any, to repay borrowings under its Revolving Facility and other indebtedness and for working capital and other general corporate purposes. The Operating Partnership may also use net proceeds for acquisitions of operating properties and the development or redevelopment of properties, although there are currently no understandings, commitments or agreements to do so.

Share Repurchase Program

In February 2021, the Company’s Board of Trustees approved a share repurchase program, authorizing share repurchases up to an aggregate of $150.0 million (the “Share Repurchase Program”). In February 2022, the Company extended its Share Repurchase Program for an additional year and it will now terminate on February 28, 2023 if not terminated or extended prior

to that date. In April 2022, the Company’s Board of Trustees authorized a $150.0 million increase to the size of the Share Repurchase Program, authorizing share repurchases up to an aggregate $300.0 million. As of March 31, 2022, the Company has not repurchased any shares under its Share Repurchase Program. The Company intends to fund any future repurchases under the Share Purchase Program with cash on hand or availability under its Revolving Facility, subject to any applicable restrictions. The timing of share repurchases and the number of common shares to be repurchased under the Share Repurchase Program will depend upon prevailing market conditions, regulatory requirements and other factors.

XML

EARNINGS PER SHARE OR UNITS

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE OR UNITS

EARNINGS PER SHARE OR UNIT

Basic earnings per share or unit is calculated based on the weighted average number of common shares or units outstanding during the period. Diluted earnings per share or unit is determined based on the weighted average number of common shares or units outstanding during the period combined with the incremental average common shares or units that would have been outstanding assuming the conversion of all potentially dilutive common shares or units into common shares or units as of the earliest date possible.

Potentially dilutive securities include (i) outstanding options to acquire common shares; (ii) Limited Partner Units, which may be exchanged for either cash or common shares, at the Parent Company’s option and under certain circumstances; (iii) appreciation-only Long-Term Incentive Plan (“AO LTIP”) units; and (iv) deferred common share units, which may be credited to the personal accounts of non-employee trustees in lieu of compensation paid in cash or the issuance of common shares to such trustees. Limited Partner Units have been omitted from the Parent Company’s denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the denominator would have no dilutive impact. Weighted average Limited Partner Units outstanding for the three months ended March 31, 2022 and 2021 were 2.4 million and 2.5 million, respectively.

Due to the net loss allocable to common shareholders and Common Unit holders for the three months ended March 31, 2022, no securities had a dilutive impact for this period.

XML

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Other Commitments and Contingencies

We are obligated under various completion guarantees with certain lenders and lease agreements with tenants to complete all or portions of a development project and tenant-specific space currently under construction. We believe we currently have sufficient financing in place to fund these projects and expect to do so primarily through borrowings on our Revolving Facility.

In 2017, we provided a repayment guaranty on a $33.8 million construction loan associated with the development of the Embassy Suites at the University of Notre Dame, consistent with our 35% ownership interest. Our portion of the repayment guaranty is limited to $5.9 million and the guaranty’s term is through July 1, 2024, the maturity date of the construction loan. As of March 31, 2022, the outstanding loan balance is $33.6 million, of which our share is $11.8 million. The loan is secured by the hotel.

As of March 31, 2022, we had outstanding letters of credit totaling $1.5 million with no amounts advanced against these instruments.

Legal Proceedings

We are not subject to any material litigation nor, to management’s knowledge, is any material litigation currently threatened against us. We are parties to routine litigation, claims, and administrative proceedings arising in the ordinary course of business. Management believes that such matters will not have a material adverse impact on our consolidated financial condition, results of operations or cash flows taken as a whole.

XML

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Subsequent to March 31, 2022, we:

•closed on the acquisition of a two-tenant building adjacent to MacArthur Crossing, an existing multi-tenant retail property located in the Dallas MSA, for a gross purchase price of $21.9 million;

•used the $125.0 million short-term deposit that matured on April 7, 2022 to repay borrowings on the Revolving Facility. See Note 2 to the consolidated financial statements for further details; and

•repaid a mortgage payable with a principal balance of $11.4 million and a fixed interest rate of 4.65%.

In April 2022, the Company’s Board of Trustees authorized a $150.0 million increase to the size of the Share Repurchase Program, authorizing share repurchases up to an aggregate $300.0 million.

XML

CONSOLIDATIONS, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS (Policies)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Short-Term Deposits

Short-Term Deposits

As of March 31, 2022, the Company had a $125.0 million short-term deposit held in a custody account at Bank of New York Mellon to fund 2022 debt maturities or other borrowings. The deposit balance, which approximates fair value, earned interest at a rate of the Federal Funds Rate plus 43 basis points and matured on April 7, 2022, the proceeds of which were used to repay borrowings on the Company’s revolving line of credit. Interest income on the deposit is recorded within “Other expense, net” on the accompanying consolidated statements of operations and comprehensive income.

Consolidation and Investments in Joint Ventures

Consolidation and Investments in Joint Ventures

The accompanying financial statements are presented on a consolidated basis and include all accounts of the Parent Company, the Operating Partnership, the taxable REIT subsidiaries (“TRSs”) of the Operating Partnership, subsidiaries of the

Operating Partnership that are controlled and any variable interest entities (“VIEs”) in which the Operating Partnership is the primary beneficiary. As of March 31, 2022, we owned investments in three consolidated joint ventures that were VIEs in which the partners did not have substantive participating rights and we were the primary beneficiary. As of March 31, 2022, these consolidated VIEs had mortgage debt of $28.9 million, which were secured by assets of the VIEs totaling $116.6 million. The Operating Partnership guarantees the mortgage debt of these VIEs.

The Operating Partnership is considered a VIE as the limited partners do not hold kick-out rights or substantive participating rights. The Parent Company consolidates the Operating Partnership as it is the primary beneficiary.

Income Taxes and REIT Compliance

Parent Company

The Parent Company, which is considered a corporation for U.S. federal income tax purposes, has been organized and operated, and intends to continue to operate, in a manner that will enable it to maintain its qualification as a REIT for U.S. federal income tax purposes. As a result, it generally will not be subject to U.S. federal income tax on the earnings that it distributes to the extent it distributes its “REIT taxable income” (determined before the deduction for dividends paid and excluding net capital gains) to shareholders of the Parent Company and meets certain other requirements on a recurring basis. To the extent that it satisfies this distribution requirement, but distributes less than 100% of its taxable income, it will be subject to U.S. federal corporate income tax on its undistributed REIT taxable income. REITs are subject to a number of organizational and operational requirements. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income tax on its taxable income at regular corporate rates for a period of four years following the year in which qualification is lost. We may also be subject to certain U.S. federal, state and local taxes on our income and property and to U.S. federal income and excise taxes on our undistributed taxable income even if the Parent Company does qualify as a REIT. The Operating Partnership intends to continue to make distributions to the Parent Company in amounts sufficient to assist the Parent Company in adhering to REIT requirements and maintaining its REIT status.

We have elected to treat Kite Realty Holdings, LLC as a TRS of the Operating Partnership. In addition, in connection with the Merger, we assumed RPAI’s existing TRS, IWR Protective Corporation, as a TRS of the Operating Partnership and we may elect to treat other subsidiaries as TRSs in the future. This election enables us to receive income and provide services that would otherwise be impermissible for a REIT. Deferred tax assets and liabilities are established for temporary differences between the financial reporting bases and the tax bases of assets and liabilities at the tax rates expected to be in effect when the temporary differences reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Operating Partnership

The allocated share of income and loss, other than the operations of our TRSs, is included in the income tax returns of the Operating Partnership’s partners. Accordingly, the only U.S. federal income taxes included in the accompanying consolidated financial statements are in connection with the TRSs.

Noncontrolling Interests

Noncontrolling Interests

We report the non-redeemable noncontrolling interests in subsidiaries as equity, and the amount of consolidated net income attributable to these noncontrolling interests is set forth separately in the consolidated financial statements. The following table summarizes the non-redeemable noncontrolling interests in consolidated properties for the three months ended March 31, 2022 and 2021:

($ in thousands)	2022		2021
Noncontrolling interests balance as of January 1,	$	5,146	$	698
Net loss allocable to noncontrolling interests, excluding redeemable noncontrolling interests	12		—
Noncontrolling interests balance as of March 31,	$	5,158	$	698

Noncontrolling Interests – Joint Venture

Prior to the Merger with RPAI, RPAI entered into a joint venture related to the development, ownership and operation of the multifamily rental portion of the expansion project at One Loudoun Downtown – Pads G & H. The Company owns 90% of the joint venture.

As of March 31, 2022, the Company has funded $0.7 million of the partner’s development costs related to One Loudoun Downtown – Pads G & H through a loan provided by the Company to the joint venture. The loan is secured by the joint venture project, is required to be repaid subsequent to the completion of construction and stabilization of the project and is eliminated upon consolidation. Under terms defined in the joint venture agreement, after construction completion and stabilization of the development project, the Company has the ability to call, and the joint venture partner has the ability to put to the Company, subject to certain conditions, the joint venture partner’s interest in the joint venture at fair value.

The joint venture is considered a VIE primarily because the Company’s joint venture partner does not have substantive kick-out rights or substantive participating rights. The Company is considered the primary beneficiary as it has a controlling financial interest in the joint venture. As such, the Company has consolidated this joint venture and presented the joint venture partners’ interests as noncontrolling interests.

Redeemable Noncontrolling Interests – Limited Partners

Limited Partner Units are redeemable noncontrolling interests in the Operating Partnership. We classify redeemable noncontrolling interests in the Operating Partnership in the accompanying consolidated balance sheets outside of permanent equity because we may be required to pay cash to holders of Limited Partner Units upon redemption of their interests in the Operating Partnership or deliver registered shares upon their conversion. The carrying amount of the redeemable noncontrolling interests in the Operating Partnership is reflected at the greater of historical book value or redemption value with a corresponding adjustment to additional paid-in capital. As of March 31, 2022 and December 31, 2021, the redemption value of the redeemable noncontrolling interests in the Operating Partnership exceeded the historical book value, and the balances were accordingly adjusted to redemption value.

We allocate net operating results of the Operating Partnership after noncontrolling interests in the consolidated properties based on the partners’ respective weighted average ownership interest. We adjust the redeemable noncontrolling interests in the Operating Partnership at the end of each reporting period to reflect their interests in the Operating Partnership or redemption value. This adjustment is reflected in our shareholders’ and Parent Company’s equity. For the three months ended March 31, 2022 and 2021, the weighted average interests of the Parent Company and the limited partners in the Operating Partnership were as follows:

	Three Months Ended March 31,
	2022		2021
Parent Company’s weighted average interest in Operating Partnership	98.9	%	97.1	%
Limited partners’ weighted average interests in Operating Partnership	1.1	%	2.9	%

At March 31, 2022 and December 31, 2021, the Parent Company’s interest and the limited partners’ redeemable noncontrolling ownership interests in the Operating Partnership were 98.9% and 1.1%.

Concurrent with the Parent Company’s initial public offering and related formation transactions, certain individuals received Limited Partner Units of the Operating Partnership in exchange for their interests in certain properties. The limited partners have the right to redeem Limited Partner Units for cash or, at the Parent Company’s election, common shares of the Parent Company in an amount equal to the market value of an equivalent number of common shares of the Parent Company at the time of redemption. Such common shares must be registered, which is not fully in the Parent Company’s control. Therefore, the limited partners’ interest is not reflected in permanent equity. The Parent Company also has the right to redeem the Limited Partner Units directly from the limited partner in exchange for either cash in the amount specified above or a number of its common shares equal to the number of Limited Partner Units being redeemed.

There were 2,516,282 and 2,377,777 Limited Partner Units outstanding as of March 31, 2022 and December 31, 2021, respectively. The increase in Limited Partner Units outstanding from December 31, 2021 is due to non-cash compensation awards made to our executive officers in the form of Limited Partner Units.

Redeemable Noncontrolling Interests – Subsidiaries

Prior to the merger with Inland Diversified Real Estate Trust, Inc. (“Inland Diversified”) in 2014, Inland Diversified formed joint ventures with the previous owners of certain properties and issued Class B units in three joint ventures that indirectly own those properties. The Class B units related to one of these three joint ventures remain outstanding and are accounted for as noncontrolling interests in the remaining venture. The remaining Class B units will become redeemable at the respective partner’s election in October 2022 and the fulfillment of certain redemption criteria. Beginning in November 2022, the Class B units can be redeemed at the election of either our partner or us for cash or Limited Partner Units in the Operating

Partnership. The Class B units do not have a maturity date, and none are mandatorily redeemable unless either party has elected for the units to be redeemed. We consolidate this joint venture because we control the decision-making and our joint venture partner has limited protective rights.We classify the redeemable noncontrolling interests related to the remaining Class B units in the accompanying consolidated balance sheets outside of permanent equity because, under certain circumstances, we may be required to pay cash to Class B unitholders in this subsidiary upon redemption of their interests. The carrying amount of these redeemable noncontrolling interests is required to be reflected at the greater of initial book value or redemption value with a corresponding adjustment to additional paid-in capital.

Fair Value Measurements

Fair Value Measurements

We follow the framework established under Financial Accounting Standards Board (“FASB”) ASC 820, Fair Value Measurements and Disclosures, for measuring fair value of non-financial assets and liabilities that are not required or permitted to be measured at fair value on a recurring basis but only in certain circumstances, such as a business combination or upon determination of an impairment.

Assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

•Level 1 fair value inputs are quoted prices in active markets for identical instruments to which we have access.

•Level 2 fair value inputs are inputs other than quoted prices included in Level 1 that are observable for similar instruments, either directly or indirectly, and appropriately consider counterparty creditworthiness in the valuations.

•Level 3 fair value inputs reflect our best estimate of inputs and assumptions market participants would use in pricing an instrument at the measurement date. The inputs are unobservable in the market and significant to the valuation estimate.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Recently Issued Accounting Pronouncements

Effects of Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. In March 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the

corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

XML

CONSOLIDATIONS, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS (Tables)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Investment Properties

The following table summarizes the composition of the Company’s investment properties as of March 31, 2022 and December 31, 2021:

	Balance as of
($ in thousands)	March 31, 2022		December 31, 2021
Land, buildings and improvements	$	7,581,145	$	7,543,376
Furniture, equipment and other	7,674		7,612
Construction in progress	38,762		41,360
Investment properties, at cost	$	7,627,581	$	7,592,348

Schedule of Lease Rental Income

Rental income related to the Company’s operating leases is comprised of the following for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
Fixed contractual lease payments – operating leases	$	148,790	$	54,803
Variable lease payments – operating leases	37,025		13,929
Bad debt reserve	(571)		(1,309)
Straight-line rent adjustments	4,093		98
Straight-line rent reserve for uncollectibility	(62)		(110)
Amortization of in-place lease liabilities, net	583		479
Rental income	$	189,858	$	67,890

Schedule of Stockholders Equity

The following table summarizes the non-redeemable noncontrolling interests in consolidated properties for the three months ended March 31, 2022 and 2021:

($ in thousands)	2022		2021
Noncontrolling interests balance as of January 1,	$	5,146	$	698
Net loss allocable to noncontrolling interests, excluding redeemable noncontrolling interests	12		—
Noncontrolling interests balance as of March 31,	$	5,158	$	698

Schedule of Weighted Average Interests of Parent and OP

For the three months ended March 31, 2022 and 2021, the weighted average interests of the Parent Company and the limited partners in the Operating Partnership were as follows:

	Three Months Ended March 31,
	2022		2021
Parent Company’s weighted average interest in Operating Partnership	98.9	%	97.1	%
Limited partners’ weighted average interests in Operating Partnership	1.1	%	2.9	%

Schedule of Redeemable Noncontrolling Interests

The redeemable noncontrolling interests in the Operating Partnership and subsidiaries for the three months ended March 31, 2022 and 2021 were as follows:

($ in thousands)	2022		2021
Redeemable noncontrolling interests balance as of January 1,	$	55,173	$	43,275
Net (loss) income allocable to redeemable noncontrolling interests	(34)		778
Distributions declared to redeemable noncontrolling interests	(584)		(511)
Other, net including adjustments to redemption value	5,821		8,463
Total limited partners’ interests in Operating Partnership and other redeemable noncontrolling interests balance as of March 31,	$	60,376	$	52,005
Limited partners’ interests in Operating Partnership	$	50,306	$	41,935
Other redeemable noncontrolling interests in certain subsidiaries	10,070		10,070
Total limited partners’ interests in Operating Partnership and other redeemable noncontrolling interests balance as of March 31,	$	60,376	$	52,005

XML

ACQUISITIONS (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Conversion of Acquired Shares

The number of RPAI common stock outstanding as of October 21, 2021 converted to shares of the Company’s common stock was determined as follows:

RPAI common stock outstanding as of October 21, 2021	214,797,869
Exchange ratio	0.623
Company common shares issued for outstanding RPAI common stock	133,814,066
Company common shares issued for RPAI restricted stock units	1,117,399
Total Company common shares issued	134,931,465

Schedule of Purchase Price and Total Value of Equity Considerations Paid

The following table presents the purchase price and total value of equity consideration paid by the Company at the close of the Merger:

(in thousands, except share price)	Price of Company common shares		Equity Consideration Given (Company common shares issued)	Total Value of Stock Consideration(1)
As of October 21, 2021	$	21.18	134,931	$	2,847,369

(1)The total value of stock consideration is the total of the common shares issued multiplied by the closing price of the Company’s common stock on October 21, 2021 excluding the value of certain RPAI restricted stock that vested at the closing of the Merger and share awards assumed by the Company at the closing of the Merger.

Level 3 Assumptions Utilized in Determining Value of Acquired Assets

The range of the most significant Level 3 assumptions utilized in determining the value of the real estate and related assets acquired through the Merger with RPAI are as follows:

	Range of Assumptions
Net rental rate per square foot – Anchors	$4.00 to $45.00
Net rental rate per square foot – Small Shops	$7.00 to $140.00
Capitalization rate	5.50% to 12.00%

Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the final purchase price allocation, including the acquisition date fair value of the tangible and intangible assets acquired and liabilities assumed:

($ in thousands)	Purchase Price Allocation
Investment properties	$	4,425,254
Acquired lease intangible assets	535,465
Cash, accounts receivable and other assets	84,632
Total assets acquired	5,045,351
Mortgage and other indebtedness, net	(1,848,476)
Accounts payable, other liabilities, tenant security deposits and prepaid rent	(176,391)
In-place lease liabilities	(168,652)
Noncontrolling interests	(4,463)
Total liabilities assumed	(2,197,982)
Total purchase price	$	2,847,369

The following table details the weighted average amortization periods, in years, of the purchase price allocated to real estate and related intangible assets and liabilities acquired arising from the Merger:

	Weighted Average Amortization Period (in years)
Land	10.2
Building	18.8
Tenant improvements	6.7
In-place lease intangibles	5.5
Above-market leases	5.7
Below-market leases (including below-market option periods)	20.5
Fair market value of debt adjustments	6.8

Business Acquisition, Pro Forma Information

The pro forma financial information set forth below is based upon the Company’s historical consolidated statements of operations for the three months ended March 31, 2021, adjusted to give effect for the properties assumed through the Merger as if they were acquired as of January 1, 2021. The pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of income would have been, nor does it purport to represent the results of income for future periods.

($ in thousands)	Three Months Ended March 31, 2021
Rental income	$	183,344
Net loss	$	(16,874)
Net loss attributable to common shareholders	$	(16,688)
Net loss attributable to common shareholders per common share:
Basic(1)	$	(0.08)
Diluted(1)	$	(0.08)

Schedule of Asset Acquisition

The Company closed on the following asset acquisition during the three months ended March 31, 2022:

Date	Property Name	Metropolitan Statistical Area (MSA)	Property Type	Square Footage	Acquisition Price
February 16, 2022	Pebble Marketplace	Las Vegas	Multi-tenant retail	85,796	$	44,100

XML

DEFERRED COSTS AND INTANGIBLES, NET (Tables)

3 Months Ended

Mar. 31, 2022

Deferred Costs [Abstract]

Schedule of Deferred Costs

As of March 31, 2022 and December 31, 2021, deferred costs consisted of the following:  

($ in thousands)	March 31, 2022		December 31, 2021
Acquired lease intangible assets	$	576,500	$	567,149
Deferred leasing costs and other	56,832		55,817
	633,332		622,966
Less: accumulated amortization	(120,921)		(81,448)
Total	$	512,411	$	541,518

Schedule of Amortization

The amounts of such amortization included in the accompanying consolidated statements of operations are as follows:

	Three Months Ended March 31,
($ in thousands)	2022		2021
Amortization of deferred leasing costs, lease intangibles and other	$	42,829	$	2,832
Amortization of above-market lease intangibles	$	3,275	$	244

The following amounts of amortization of debt issuance costs are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income:

	Three Months Ended March 31,
($ in thousands)	2022		2021
Amortization of debt issuance costs	$	650	$	578

XML

DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

Schedule of Deferred Revenue, Intangibles, Net and Other Liabilities

As of March 31, 2022 and December 31, 2021, deferred revenue, intangibles, net and other liabilities consisted of the following:

($ in thousands)	March 31, 2022		December 31, 2021
Unamortized in-place lease liabilities	$	200,950	$	210,261
Retainages payable and other	8,815		10,796
Tenant rents received in advance	26,138		30,125
Lease liabilities	70,365		70,237
Total	$	306,268	$	321,419

XML

MORTGAGE AND OTHER INDEBTEDNESS (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Indebtedness

The following table summarizes the Company’s indebtedness as of March 31, 2022 and December 31, 2021:

($ in thousands)	March 31, 2022		December 31, 2021
Mortgages payable	$	350,383	$	392,590
Senior unsecured notes	1,924,635		1,924,635
Unsecured term loans	720,000		720,000
Revolving line of credit	135,000		55,000
	3,130,018		3,092,225
Unamortized discounts and premiums, net	59,360		69,425
Unamortized debt issuance costs, net	(10,260)		(10,842)
Total mortgage and other indebtedness, net	$	3,179,118	$	3,150,808

The following table summarizes the Company’s senior unsecured notes and exchangeable senior notes:

		March 31, 2022				December 31, 2021
($ in thousands)	Maturity Date	Balance		Interest Rate		Balance		Interest Rate
Senior notes – 4.23% due 2023	September 10, 2023	$	95,000	4.23	%	$	95,000	4.23	%
Senior notes – 4.58% due 2024(1)	June 30, 2024	149,635		4.58	%	149,635		4.58	%
Senior notes – 4.00% due 2025(2)	March 15, 2025	350,000		4.00	%	350,000		4.00	%
Senior notes – LIBOR + 3.65% due 2025(3)	September 10, 2025	80,000		4.61	%	80,000		3.86	%
Senior notes – 4.08% due 2026(1)	September 30, 2026	100,000		4.08	%	100,000		4.08	%
Senior notes – 4.00% due 2026	October 1, 2026	300,000		4.00	%	300,000		4.00	%
Senior exchangeable notes – 0.75% due 2027	April 1, 2027	175,000		0.75	%	175,000		0.75	%
Senior notes – LIBOR + 3.75% due 2027(4)	September 10, 2027	75,000		4.71	%	75,000		3.96	%
Senior notes – 4.24% due 2028(1)	December 28, 2028	100,000		4.24	%	100,000		4.24	%
Senior notes – 4.82% due 2029(1)	June 28, 2029	100,000		4.82	%	100,000		4.82	%
Senior notes – 4.75% due 2030(2)	September 15, 2030	400,000		4.75	%	400,000		4.75	%
Total senior unsecured notes		$	1,924,635			$	1,924,635

(1)Private placement notes assumed in connection with the Merger.

(2)Publicly placed notes assumed in connection with the Merger.

(3)$80,000 of 4.47% senior unsecured notes has been swapped to a variable rate of three-month LIBOR plus 3.65% through September 10, 2025.

(4)$75,000 of 4.57% senior unsecured notes has been swapped to a variable rate of three-month LIBOR plus 3.75% through September 10, 2025.

The following table summarizes the Company’s term loans and revolving line of credit:

		March 31, 2022				December 31, 2021
($ in thousands)	Maturity Date	Balance		Interest Rate		Balance		Interest Rate
Unsecured term loan due 2023 – fixed rate(1)(2)	November 22, 2023	$	200,000	4.10	%	$	200,000	4.10	%
Unsecured term loan due 2024 – fixed rate(1)(3)	July 17, 2024	120,000		2.88	%	120,000		2.88	%
Unsecured term loan due 2025 – fixed rate(4)(5)	October 24, 2025	250,000		5.09	%	250,000		5.09	%
Unsecured term loan due 2026 – fixed rate(1)(6)	July 17, 2026	150,000		2.97	%	150,000		2.97	%
Total unsecured term loans		$	720,000			$	720,000
Unsecured credit facility revolving line of credit – variable rate(1)(7)	January 8, 2026	$	135,000	1.55	%	$	55,000	1.20	%

(1)Unsecured term loans and revolving line of credit assumed in connection with the Merger.

(2)$200,000 of LIBOR-based variable rate debt has been swapped to a fixed rate 2.85% plus a credit spread based on a leverage grid ranging from 1.20% to 1.85% through November 22, 2023. The applicable credit spread was 1.25% as of March 31, 2022 and December 31, 2021.

(3)$120,000 of LIBOR-based variable rate debt has been swapped to a fixed rate 1.68% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through July 17, 2024. The applicable credit spread was 1.20% as of March 31, 2022 and December 31, 2021.

(4)$250,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 5.09% through October 24, 2025.

(5)The maturity date of the term loan may be extended for up to three additional periods of one year at the Operating Partnership’s option, subject to certain conditions.

(6)$150,000 of LIBOR-based variable rate debt has been swapped to a fixed rate 1.77% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through July 17, 2026. The applicable credit spread was 1.20% as of March 31, 2022 and December 31, 2021.

(7)The revolving line of credit has two six-month extension options that the Company can exercise, at its election, subject to (i) customary representations and warranties, including, but not limited to, the absence of an event of default as defined in the unsecured credit

agreement and (ii) payment of an extension fee equal to 0.075% of the revolving line of credit capacity. Subsequent to March 31, 2022, the $125.0 million short-term deposit was used to repay outstanding borrowings.

The following table summarizes the key terms of the Unsecured Term Loans assumed:

Unsecured Term Loans Assumed	Maturity Date	Leverage-Based Pricing Credit Spread	Investment Grade Pricing Credit Spread
$200,000 unsecured term loan due 2023	11/22/2023	1.20% – 1.85%	0.85% – 1.65%
$120,000 unsecured term loan due 2024	7/17/2024	1.20% – 1.70%	0.80% – 1.65%
$150,000 unsecured term loan due 2026	7/17/2026	1.20% – 1.70%	0.75% – 1.60%

Schedule of Weighted Average Maturities and Interest Rates

Consolidated indebtedness, including weighted average interest rates and weighted average maturities as of March 31, 2022, considering the impact of interest rate swaps, is summarized below:

($ in thousands)	Amount Outstanding		Ratio		Weighted Average Interest Rate		Weighted Average Years to Maturity
Fixed rate debt(1)	$	2,811,125	90	%	4.00	%	4.4
Variable rate debt(2)	318,893		10	%	3.11	%	4.3
Debt discounts, premiums and issuance costs, net	49,100		N/A		N/A		N/A
Total	$	3,179,118	100	%	3.90	%	4.4

(1)Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of March 31, 2022, $720.0 million in variable rate debt is hedged to a fixed rate for a weighted average of 3.0 years.

(2)Variable rate debt includes the portion of fixed rate debt that has been hedged by interest rate swaps. As of March 31, 2022, $155.0 million in fixed rate debt is hedged to a floating rate for a weighted average of 3.4 years.

Schedule of Mortgages Payable

The following table summarizes the Company’s mortgages payable:

	March 31, 2022					December 31, 2021
($ in thousands)	Balance		Weighted Average Interest Rate		Weighted Average Years to Maturity	Balance		Weighted Average Interest Rate		Weighted Average Years to Maturity
Fixed rate mortgages payable(1)	$	321,490	4.09	%	1.6	$	363,577	4.13	%	1.7
Variable rate mortgage payable(2)	28,893		2.05	%	1.3	29,013		1.70	%	0.1
Total mortgages payable	$	350,383				$	392,590

(1)The fixed rate mortgages had interest rates ranging from 3.75% to 5.73% as of March 31, 2022 and December 31, 2021.

(2)The interest rate on the variable rate mortgage is based on LIBOR plus 160 basis points. The one-month LIBOR rate was 0.45% and 0.10% as of March 31, 2022 and December 31, 2021, respectively.

Schedule of Line of Credit Facilities

The following table summarizes the key terms of the Revolving Facility:

				Leverage-Based Pricing		Investment Grade Pricing
Credit Agreement	Maturity Date	Extension Option	Extension Fee	Credit Spread	Facility Fee	Credit Spread	Facility Fee
$850,000 unsecured revolving line of credit	1/8/2026	2 six-month	0.075%	1.05%–1.50%	0.15%–0.30%	0.725%–1.40%	0.125%–0.30%

Schedule of Amortization of Debt Issuance Costs

The amounts of such amortization included in the accompanying consolidated statements of operations are as follows:

	Three Months Ended March 31,
($ in thousands)	2022		2021
Amortization of deferred leasing costs, lease intangibles and other	$	42,829	$	2,832
Amortization of above-market lease intangibles	$	3,275	$	244

The following amounts of amortization of debt issuance costs are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income:

	Three Months Ended March 31,
($ in thousands)	2022		2021
Amortization of debt issuance costs	$	650	$	578

XML

ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Thousands, ft² in Millions			3 Months Ended
	Oct. 22, 2021 USD ($) property	Oct. 21, 2021 USD ($)	Mar. 31, 2022 USD ($) ft² property
RPAI
Organization [Line Items]
Merger transaction value | $	$ 4,700,000
Assumption of debt | $	$ 1,800,000		$ 1,800,000
Conversion rate of acquiree common shares	0.623
Purchase price of shares issued in merger | $	$ 2,800,000	$ 2,847,369
Operating Retail Properties
Organization [Line Items]
Number of real estate properties			181
Area of real estate property (in square feet) | ft²			28.8
Operating Retail Properties | Consolidated Entities
Organization [Line Items]
Number of real estate properties			178
Operating Retail Properties | Equity Method Investee
Organization [Line Items]
Number of real estate properties			3
Operating Retail Properties | RPAI
Organization [Line Items]
Number of real estate properties	100
Development Projects under Construction
Organization [Line Items]
Number of real estate properties			7
Development Projects under Construction | RPAI
Organization [Line Items]
Number of real estate properties	5
Office Properties
Organization [Line Items]
Number of real estate properties			1
Area of real estate property (in square feet) | ft²			0.3
Operating Retail Properties with Office Components
Organization [Line Items]
Number of real estate properties			11
General Partner Units
Organization [Line Items]
General partner, ownership interest			98.90%
Kite Realty Group, L.P.
Organization [Line Items]
Limited partner, ownership interest			1.10%

XML

CONSOLIDATIONS, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS - Investment Properties (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Land, buildings and improvements	$ 7,581,145	$ 7,543,376
Furniture, equipment and other	7,674	7,612
Construction in progress	38,762	41,360
Investment properties, at cost	$ 7,627,581	$ 7,592,348

XML

CONSOLIDATIONS, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS - Schedule of Lease Rental Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fixed contractual lease payments – operating leases	$ 148,790	$ 54,803
Variable lease payments – operating leases	37,025	13,929
Bad debt reserve	(571)	(1,309)
Straight-line rent adjustments	4,093	98
Straight-line rent reserve for uncollectibility	(62)	(110)
Amortization of in-place lease liabilities, net	583	479
Rental income	$ 189,858	$ 67,890

XML

CONSOLIDATIONS, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) jointVenture shares	Dec. 31, 2021 USD ($) shares
Noncontrolling Interest [Line Items]
Short-term deposits	$ 125,000	$ 125,000
Variable interest entity, number of entities | jointVenture	3
VIEs, liabilities	$ 3,609,579	3,657,209
VIEs, assets	7,573,694	7,639,575
Equity method investment	$ 11,833	$ 11,885
Limited partners' capital account, units outstanding (in shares) | shares	2,516,282	2,377,777
Corporate Joint Venture
Noncontrolling Interest [Line Items]
Ownership percentage in equity method investment	90.00%
Equity method investment	$ 700
Capital Unit, Class B
Noncontrolling Interest [Line Items]
Number of joint ventures in which units are issued | jointVenture	3
Number of joint ventures in which units are issued, noncontrolling interest | jointVenture	1
Operating Partnership
Noncontrolling Interest [Line Items]
Noncontrolling interest, ownership percentage by parent	98.90%
Noncontrolling interest, ownership percentage by noncontrolling owners	1.10%
Variable Interest Entity, Primary Beneficiary
Noncontrolling Interest [Line Items]
VIEs, liabilities	$ 28,900
VIEs, assets	$ 116,600
Federal Funds Rate
Noncontrolling Interest [Line Items]
Deposit balance, basis point spread on interest rate	0.43%

XML

CONSOLIDATIONS, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS - Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Balance at beginning of period	$ 5,146	$ 698
Net loss allocable to noncontrolling interests, excluding redeemable noncontrolling interests	12	0
Balance at end of period	$ 5,158	$ 698

XML

CONSOLIDATIONS, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS - Weighted Average Interests in Operating Partnership (Details) - Operating Partnership	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Parent Company’s weighted average interest in Operating Partnership	98.90%	97.10%
Limited partners’ weighted average interests in Operating Partnership	1.10%	2.90%

XML

CONSOLIDATIONS, INVESTMENTS IN JOINT VENTURES AND NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Net (loss) income allocable to redeemable noncontrolling interests	$ (22)	$ 778
Redeemable Noncontrolling Interests
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Balance at beginning of period	55,173	43,275
Net (loss) income allocable to redeemable noncontrolling interests	(34)	778
Distributions declared to redeemable noncontrolling interests	(584)	(511)
Other, net including adjustments to redemption value	5,821	8,463
Balance at end of period	60,376	52,005
Total limited partners’ interests in Operating Partnership and other redeemable noncontrolling interests balance as of March 31,	60,376	52,005
Redeemable Noncontrolling Interests | Partnership Interest
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Roll Forward]
Balance at end of period	60,376	52,005
Limited partners’ interests in Operating Partnership	50,306	41,935
Other redeemable noncontrolling interests in certain subsidiaries	10,070	10,070
Total limited partners’ interests in Operating Partnership and other redeemable noncontrolling interests balance as of March 31,	$ 60,376	$ 52,005

XML

ACQUISITIONS - Additional Information (Details) $ / shares in Units, $ in Thousands			3 Months Ended
	Oct. 22, 2021 USD ($) property	Oct. 21, 2021 USD ($) $ / shares	Mar. 31, 2022 USD ($) property	Mar. 31, 2021 USD ($)
Business Acquisition [Line Items]
Merger and acquisition costs			$ 925	$ 0
Depreciation and amortization			$ 121,504	$ 30,634
Development Projects under Construction
Business Acquisition [Line Items]
Number of real estate properties | property			7
RPAI Board
Business Acquisition [Line Items]
Purchase price of shares issued in merger	$ 2,800,000	$ 2,847,369
Share price (in dollars per share) | $ / shares		$ 21.18
Conversion rate of acquiree common shares	0.623
Merger and acquisition costs			$ 900
Assumption of debt	$ 1,800,000		1,800,000
Pro forma revenue			123,600
Pro forma net loss			20,900
Depreciation and amortization			$ 92,900
Fair value of assets acquired and liabilities assumed	$ 2,847,369
RPAI Board | Retail Operating Property
Business Acquisition [Line Items]
Number of real estate properties | property	100
RPAI Board | Development Projects under Construction
Business Acquisition [Line Items]
Number of real estate properties | property	5

XML

ACQUISITIONS - Conversion of Shares (Details)	Oct. 22, 2021 shares	Oct. 21, 2021 shares	Mar. 31, 2022 shares	Dec. 31, 2021 shares
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Common shares outstanding (in shares)			219,042,903	218,949,569
RPAI Board
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Exchange ratio	0.623
Company common shares issued for outstanding RPAI common stock (in shares)	133,814,066
Company common shares issued for RPAI restricted stock units (in shares)	1,117,399
Total company common shares issued (in shares)	134,931,465	134,931,000
RPAI Board
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Common shares outstanding (in shares)		214,797,869

XML

ACQUISITIONS - Purchase Price and Value of Equity Consideration (Details) - RPAI Board - USD ($) $ / shares in Units, $ in Thousands	Oct. 22, 2021	Oct. 21, 2021
Business Acquisition [Line Items]
Price of Company common shares (in USD per share)		$ 21.18
Equity Consideration Given - Company common shares issued (in shares)	134,931,465	134,931,000
Total value of stock consideration	$ 2,800,000	$ 2,847,369

XML

ACQUISITIONS - Level 3 Assumptions Utilized in Determining Value of Acquired Assets (Details) - Valuation, Income Approach - RPAI Board	Oct. 22, 2021
Net rental rate per square foot – Anchors | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	4.00
Net rental rate per square foot – Anchors | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	45.00
Net rental rate per square foot – Small Shops | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	7.00
Net rental rate per square foot – Small Shops | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	140.00
Capitalization rate | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	0.0550
Capitalization rate | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input	0.1200

XML

ACQUISITIONS - Fair Value of Assets Acquired and Liabilities Assumed (Details) - RPAI Board $ in Thousands	Oct. 22, 2021 USD ($)
Business Acquisition [Line Items]
Investment properties	$ 4,425,254
Acquired lease intangible assets	535,465
Cash, accounts receivable and other assets	84,632
Total assets acquired	5,045,351
Mortgage and other indebtedness, net	(1,848,476)
Accounts payable, other liabilities, tenant security deposits and prepaid rent	(176,391)
In-place lease liabilities	(168,652)
Noncontrolling interests	(4,463)
Total liabilities assumed	(2,197,982)
Total purchase price	$ 2,847,369

XML

ACQUISITIONS - Schedule of Weighted Average Amortization Periods of Assets and Liabilities Acquired (Details) - RPAI Board	Oct. 22, 2021
Land
Business Acquisition [Line Items]
Weighted Average Amortization Period (in years)	10 years 2 months 12 days
Building
Business Acquisition [Line Items]
Weighted Average Amortization Period (in years)	18 years 9 months 18 days
Tenant improvements
Business Acquisition [Line Items]
Weighted Average Amortization Period (in years)	6 years 8 months 12 days
In-place lease intangibles
Business Acquisition [Line Items]
Weighted Average Amortization Period (in years)	5 years 6 months
Above-market leases
Business Acquisition [Line Items]
Weighted Average Amortization Period (in years)	5 years 8 months 12 days
Below-market leases (including below-market option periods)
Business Acquisition [Line Items]
Weighted Average Amortization Period (in years)	20 years 6 months
Fair market value of debt adjustments
Business Acquisition [Line Items]
Weighted Average Amortization Period (in years)	6 years 9 months 18 days

XML

ACQUISITIONS - Schedule of Pro Forma Information (Details) - RPAI Board $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) $ / shares
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Rental income	$ 183,344
Net loss	(16,874)
Net loss attributable to common shareholders	$ (16,688)
Net loss attributable to common shareholders per common share, basic (in USD per share) | $ / shares	$ (0.08)
Net loss attributable to common shareholders per common share, diluted (in USD per share) | $ / shares	$ (0.08)

XML

ACQUISITIONS - Schedule of Asset Acquisition (Details) - Pebble Marketplace Property $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) ft²
Asset Acquisition [Line Items]
Square footage (in acres) | ft²	85,796
Acquisition Price | $	$ 44.1

XML

DISPOSITIONS (Details) - Disposed of by Sale $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($) groundLease
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on disposal		$ 26.2
Number of ground lease properties | groundLease		16
Gross proceeds from sale of ground leases		$ 40.0
Hamilton Crossing Centre
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration received on disposal	$ 6.9
Net gain on disposal	$ 3.2

XML

DEFERRED COSTS AND INTANGIBLES, NET - Deferred Costs (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Deferred Costs [Abstract]
Acquired lease intangible assets	$ 576,500	$ 567,149
Deferred leasing costs and other	56,832	55,817
Deferred costs and intangibles, gross	633,332	622,966
Less: accumulated amortization	(120,921)	(81,448)
Total	$ 512,411	$ 541,518

XML

DEFERRED COSTS AND INTANGIBLES, NET - Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Deferred Costs [Abstract]
Amortization of deferred leasing costs, lease intangibles and other	$ 42,829	$ 2,832
Amortization of above-market lease intangibles	$ 3,275	$ 244

XML

DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Unamortized in-place lease liabilities	$ 200,950		$ 210,261
Retainages payable and other	8,815		10,796
Tenant rents received in advance	26,138		30,125
Lease liabilities	$ 70,365		$ 70,237
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Total		Total
Total	$ 306,268		$ 321,419
Amortization of below-market lease intangibles	$ 3,900	$ 700

XML

MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Indebtedness (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Gross debt	$ 3,130,018	$ 3,092,225
Unamortized discounts and premiums, net	59,360	69,425
Unamortized debt issuance costs, net	(10,260)	(10,842)
Total mortgage and other indebtedness, net	$ 3,179,118	3,150,808
Ratio	100.00%
Revolving line of credit
Debt Instrument [Line Items]
Gross debt	$ 135,000	55,000
Mortgages payable
Debt Instrument [Line Items]
Gross debt	350,383	392,590
Senior unsecured notes
Debt Instrument [Line Items]
Gross debt	1,924,635	1,924,635
Unsecured term loans
Debt Instrument [Line Items]
Gross debt	$ 720,000	$ 720,000

XML

MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Weighted Average Maturities and Interest Rates (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Gross debt	$ 3,130,018	$ 3,092,225
Debt discounts, premiums and issuance costs, net	49,100
Total mortgage and other indebtedness, net	$ 3,179,118	$ 3,150,808
Ratio	100.00%
Weighted Average Interest Rate	3.90%
Weighted Average Years to Maturity	4 years 4 months 24 days
Fixed rate debt
Debt Instrument [Line Items]
Gross debt	$ 2,811,125
Ratio	90.00%
Weighted Average Interest Rate	4.00%
Weighted Average Years to Maturity	4 years 4 months 24 days
Fixed rate debt | Variable Rate Debt
Debt Instrument [Line Items]
Total mortgage and other indebtedness, net	$ 720,000
Weighted Average Years to Maturity	3 years
Variable rate debt
Debt Instrument [Line Items]
Gross debt	$ 318,893
Ratio	10.00%
Weighted Average Interest Rate	3.11%
Weighted Average Years to Maturity	4 years 3 months 18 days
Variable rate debt | Fixed Rate Debt
Debt Instrument [Line Items]
Total mortgage and other indebtedness, net	$ 155,000
Weighted Average Years to Maturity	3 years 4 months 24 days

XML

MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Mortgages Payable (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Participating Mortgage Loans [Line Items]
Gross debt	$ 3,130,018	$ 3,092,225
Weighted Average Interest Rate	3.90%
Weighted Average Years to Maturity	4 years 4 months 24 days
Variable Rate Debt | Minimum
Participating Mortgage Loans [Line Items]
Percentage bearing variable interest	1.55%
Variable Rate Debt | Maximum
Participating Mortgage Loans [Line Items]
Percentage bearing variable interest	3.45%
Mortgages payable
Participating Mortgage Loans [Line Items]
Gross debt	$ 350,383	392,590
Interest Rate	4.43%
Mortgages payable | Fixed Rate Debt
Participating Mortgage Loans [Line Items]
Gross debt	$ 321,490	$ 363,577
Weighted Average Interest Rate	4.09%	4.13%
Weighted Average Years to Maturity	1 year 7 months 6 days	1 year 8 months 12 days
Mortgages payable | Fixed Rate Debt | Minimum
Participating Mortgage Loans [Line Items]
Interest Rate	3.75%	3.75%
Mortgages payable | Fixed Rate Debt | Maximum
Participating Mortgage Loans [Line Items]
Interest Rate	5.73%	5.73%
Mortgages payable | Variable Rate Debt
Participating Mortgage Loans [Line Items]
Gross debt	$ 28,893	$ 29,013
Weighted Average Interest Rate	2.05%	1.70%
Weighted Average Years to Maturity	1 year 3 months 18 days	1 month 6 days
Mortgages payable | Variable Rate Debt | LIBOR
Participating Mortgage Loans [Line Items]
Credit Spread	1.60%
Percentage bearing variable interest	0.45%	0.10%

XML

MORTGAGE AND OTHER INDEBTEDNESS - Additional Information (Details)			3 Months Ended
	Oct. 22, 2021 USD ($) extension	Oct. 25, 2018 USD ($) extension	Mar. 31, 2022 USD ($) extension	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Letters of credit outstanding			$ 1,500,000
Letters of credit outstanding, amount advanced			0
Gross debt			3,130,018,000	$ 3,092,225,000
Percentage bearing fixed interest, amount			2,200,000,000
Percentage bearing variable interest, amount			$ 883,800,000
RPAI
Debt Instrument [Line Items]
Debt assumed in merger	$ 1,848,476,000
Revolving line of credit
Debt Instrument [Line Items]
Interest Rate			1.55%	1.20%
Number of extensions | extension			2
Extension period			6 months
Gross debt			$ 135,000,000	$ 55,000,000
Revolving line of credit | LIBOR
Debt Instrument [Line Items]
Reduction of interest rate margin upon achievement of sustainability metric			0.0001
Revolving line of credit | Kite Realty Group, L.P.
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 850,000,000		$ 850,000,000
Number of extensions | extension	2		2
Extension period	6 months		6 months
Line of credit facility, option to increase maximum borrowing capacity			$ 1,600,000,000
Mortgages payable
Debt Instrument [Line Items]
Repayment of debt assumed			41,200,000
Repayments of debt			$ 1,000,000
Interest Rate			4.43%
Gross debt			$ 350,383,000	392,590,000
Unsecured term loans
Debt Instrument [Line Items]
Gross debt			$ 720,000,000	$ 720,000,000
Unsecured term loans | Kite Realty Group, L.P. | RPAI
Debt Instrument [Line Items]
Debt assumed in merger	$ 470,000,000
Unsecured term loan due 2024 - fixed rate | Unsecured term loans
Debt Instrument [Line Items]
Interest Rate			2.88%	2.88%
Gross debt			$ 120,000,000	$ 120,000,000
Percentage bearing fixed interest			1.68%
Unsecured term loan due 2024 - fixed rate | Unsecured term loans | Kite Realty Group, L.P.
Debt Instrument [Line Items]
Gross debt			$ 120,000,000
Gross debt, option to increase			$ 250,000,000
Unsecured term loan due 2026 - fixed rate | Unsecured term loans
Debt Instrument [Line Items]
Interest Rate			2.97%	2.97%
Gross debt			$ 150,000,000	$ 150,000,000
Percentage bearing fixed interest			1.77%
Unsecured term loan due 2026 - fixed rate | Unsecured term loans | Kite Realty Group, L.P.
Debt Instrument [Line Items]
Gross debt			$ 150,000,000
Gross debt, option to increase			$ 250,000,000
Unsecured term loan due 2026 - fixed rate | Unsecured term loans | Kite Realty Group, L.P. | LIBOR
Debt Instrument [Line Items]
Reduction of interest rate margin upon achievement of sustainability metric			0.0001
Unsecured term loan due 2023 - fixed rate | Unsecured term loans
Debt Instrument [Line Items]
Interest Rate			4.10%	4.10%
Gross debt			$ 200,000,000	$ 200,000,000
Percentage bearing fixed interest			2.85%
Unsecured term loan due 2023 - fixed rate | Unsecured term loans | Kite Realty Group, L.P.
Debt Instrument [Line Items]
Gross debt			$ 200,000,000
Gross debt, option to increase			$ 300,000,000
Term Loan Due October 2025 | Unsecured term loans | Kite Realty Group, L.P.
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 250,000,000
Number of extensions | extension		3
Extension period		1 year
Line of credit facility, option to increase maximum borrowing capacity		$ 300,000,000
Term Loan Due October 2025 | Unsecured term loans
Debt Instrument [Line Items]
Interest Rate			5.09%	5.09%
Number of extensions | extension			3
Extension period			1 year
Gross debt			$ 250,000,000	$ 250,000,000
Percentage bearing fixed interest			5.09%
Term Loan Due October 2025 | Unsecured term loans | Kite Realty Group, L.P.
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 250,000,000
Fixed Rate Debt
Debt Instrument [Line Items]
Long-term debt, fair value			$ 2,300,000,000
Fixed Rate Debt | Minimum
Debt Instrument [Line Items]
Percentage bearing fixed interest			3.85%
Fixed Rate Debt | Maximum
Debt Instrument [Line Items]
Percentage bearing fixed interest			5.26%
Fixed Rate Debt | Mortgages payable
Debt Instrument [Line Items]
Gross debt			$ 321,490,000	$ 363,577,000
Fixed Rate Debt | Mortgages payable | Minimum
Debt Instrument [Line Items]
Interest Rate			3.75%	3.75%
Fixed Rate Debt | Mortgages payable | Maximum
Debt Instrument [Line Items]
Interest Rate			5.73%	5.73%
Variable Rate Debt
Debt Instrument [Line Items]
Long-term debt, fair value			$ 886,900,000
Variable Rate Debt | Mortgages payable
Debt Instrument [Line Items]
Gross debt			$ 28,893,000	$ 29,013,000

XML

MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Senior Unsecured Notes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Gross debt	$ 3,130,018	$ 3,092,225
Senior unsecured notes
Debt Instrument [Line Items]
Gross debt	1,924,635	1,924,635
Senior unsecured notes | Senior notes – 4.23% due 2023
Debt Instrument [Line Items]
Gross debt	$ 95,000	$ 95,000
Effective interest rate	4.23%	4.23%
Senior unsecured notes | Senior notes - 4.58% due 2024
Debt Instrument [Line Items]
Gross debt	$ 149,635	$ 149,635
Effective interest rate	4.58%	4.58%
Senior unsecured notes | Senior notes - 4.00% due 2025
Debt Instrument [Line Items]
Gross debt	$ 350,000	$ 350,000
Effective interest rate	4.00%	4.00%
Senior unsecured notes | Senior notes - LIBOR + 3.65% due 2025
Debt Instrument [Line Items]
Gross debt	$ 80,000	$ 80,000
Effective interest rate	4.61%	3.86%
Interest Rate	4.47%
Senior unsecured notes | Senior notes - LIBOR + 3.65% due 2025 | LIBOR
Debt Instrument [Line Items]
Credit Spread	3.65%
Senior unsecured notes | Senior notes - 4.08% due 2026
Debt Instrument [Line Items]
Gross debt	$ 100,000	$ 100,000
Effective interest rate	4.08%	4.08%
Senior unsecured notes | Senior notes – 4.00% due 2026
Debt Instrument [Line Items]
Gross debt	$ 300,000	$ 300,000
Effective interest rate	4.00%	4.00%
Senior unsecured notes | Senior notes - LIBOR + 3.75% due 2027
Debt Instrument [Line Items]
Gross debt	$ 75,000	$ 75,000
Effective interest rate	4.71%	3.96%
Interest Rate	4.57%
Senior unsecured notes | Senior notes - LIBOR + 3.75% due 2027 | LIBOR
Debt Instrument [Line Items]
Credit Spread	3.75%
Senior unsecured notes | Senior notes - 4.24% due 2028
Debt Instrument [Line Items]
Gross debt	$ 100,000	$ 100,000
Effective interest rate	4.24%	4.24%
Senior unsecured notes | Senior notes - 4.82% due 2029
Debt Instrument [Line Items]
Gross debt	$ 100,000	$ 100,000
Effective interest rate	4.82%	4.82%
Senior unsecured notes | Senior notes - 4.75% due 2030
Debt Instrument [Line Items]
Gross debt	$ 400,000	$ 400,000
Effective interest rate	4.75%	4.75%
Senior Exchangeable Notes | Senior exchangeable notes – 0.75% due 2027
Debt Instrument [Line Items]
Gross debt	$ 175,000	$ 175,000
Effective interest rate	0.75%	0.75%

XML

MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Term Loans and Revolving Lines of Credit (Details) $ in Thousands	1 Months Ended	3 Months Ended
	May 06, 2022 USD ($)	Mar. 31, 2022 USD ($) extension	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Gross debt		$ 3,130,018	$ 3,092,225
Unsecured credit facility revolving line of credit - variable rate
Debt Instrument [Line Items]
Gross debt		$ 135,000	$ 55,000
Interest Rate		1.55%	1.20%
Number of extensions | extension		2
Extension period		6 months
Extension fee percentage		0.00075
Unsecured credit facility revolving line of credit - variable rate | Subsequent Event
Debt Instrument [Line Items]
Repayments of debt	$ 125,000
Unsecured term loans
Debt Instrument [Line Items]
Gross debt		$ 720,000	$ 720,000
Unsecured term loans | Unsecured term loan due 2023 - fixed rate
Debt Instrument [Line Items]
Gross debt		$ 200,000	$ 200,000
Interest Rate		4.10%	4.10%
Percentage bearing fixed interest		2.85%
Unsecured term loans | Unsecured term loan due 2023 - fixed rate | LIBOR
Debt Instrument [Line Items]
Percentage bearing variable interest		1.25%	1.25%
Unsecured term loans | Unsecured term loan due 2023 - fixed rate | LIBOR | Minimum
Debt Instrument [Line Items]
Credit Spread		1.20%
Unsecured term loans | Unsecured term loan due 2024 - fixed rate
Debt Instrument [Line Items]
Gross debt		$ 120,000	$ 120,000
Interest Rate		2.88%	2.88%
Percentage bearing fixed interest		1.68%
Unsecured term loans | Unsecured term loan due 2024 - fixed rate | LIBOR
Debt Instrument [Line Items]
Percentage bearing variable interest		1.20%	1.20%
Unsecured term loans | Unsecured term loan due 2024 - fixed rate | LIBOR | Minimum
Debt Instrument [Line Items]
Credit Spread		1.20%
Unsecured term loans | Unsecured term loan due 2025 - fixed rate
Debt Instrument [Line Items]
Gross debt		$ 250,000	$ 250,000
Interest Rate		5.09%	5.09%
Percentage bearing fixed interest		5.09%
Number of extensions | extension		3
Extension period		1 year
Unsecured term loans | Unsecured term loan due 2026 - fixed rate
Debt Instrument [Line Items]
Gross debt		$ 150,000	$ 150,000
Interest Rate		2.97%	2.97%
Percentage bearing fixed interest		1.77%
Unsecured term loans | Unsecured term loan due 2026 - fixed rate | LIBOR
Debt Instrument [Line Items]
Percentage bearing variable interest		1.20%	1.20%
Unsecured term loans | Unsecured term loan due 2026 - fixed rate | LIBOR | Minimum
Debt Instrument [Line Items]
Credit Spread		1.20%

XML

MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Revolving Facility Key Terms (Details) - Revolving line of credit		3 Months Ended
	Oct. 22, 2021 USD ($) extension	Mar. 31, 2022 USD ($) extension
Line of Credit Facility [Line Items]
Number of extensions		2
Extension period		6 months
Extension fee percentage		0.00075
Kite Realty Group, L.P.
Line of Credit Facility [Line Items]
$850,000 unsecured revolving line of credit | $	$ 850,000,000	$ 850,000,000
Number of extensions	2	2
Extension period	6 months	6 months
Extension fee percentage		0.00075
Kite Realty Group, L.P. | Minimum | Leverage-Based Pricing
Line of Credit Facility [Line Items]
Facility Fee		0.15%
Kite Realty Group, L.P. | Minimum | Investment Grade Pricing
Line of Credit Facility [Line Items]
Facility Fee		0.125%
Kite Realty Group, L.P. | Minimum | LIBOR | Leverage-Based Pricing
Line of Credit Facility [Line Items]
Credit Spread		1.05%
Kite Realty Group, L.P. | Minimum | LIBOR | Investment Grade Pricing
Line of Credit Facility [Line Items]
Credit Spread		0.725%
Kite Realty Group, L.P. | Maximum | Leverage-Based Pricing
Line of Credit Facility [Line Items]
Facility Fee		0.30%
Kite Realty Group, L.P. | Maximum | Investment Grade Pricing
Line of Credit Facility [Line Items]
Facility Fee		0.30%
Kite Realty Group, L.P. | Maximum | LIBOR | Leverage-Based Pricing
Line of Credit Facility [Line Items]
Credit Spread		1.50%
Kite Realty Group, L.P. | Maximum | LIBOR | Investment Grade Pricing
Line of Credit Facility [Line Items]
Credit Spread		1.40%

XML

MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Unsecured Term Loan Key Terms (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Gross debt	$ 3,130,018	$ 3,092,225
Unsecured term loans
Debt Instrument [Line Items]
Gross debt	720,000	720,000
Unsecured term loans | $200,000 unsecured term loan due 2023
Debt Instrument [Line Items]
Gross debt	$ 200,000	200,000
Unsecured term loans | $200,000 unsecured term loan due 2023 | Minimum | LIBOR
Debt Instrument [Line Items]
Credit Spread	1.20%
Unsecured term loans | $200,000 unsecured term loan due 2023 | Maximum | LIBOR
Debt Instrument [Line Items]
Credit Spread	1.85%
Unsecured term loans | $200,000 unsecured term loan due 2023 | Kite Realty Group, L.P.
Debt Instrument [Line Items]
Gross debt	$ 200,000
Unsecured term loans | $200,000 unsecured term loan due 2023 | Kite Realty Group, L.P. | Minimum | LIBOR | Leverage-Based Pricing
Debt Instrument [Line Items]
Credit Spread	1.20%
Unsecured term loans | $200,000 unsecured term loan due 2023 | Kite Realty Group, L.P. | Minimum | LIBOR | Investment Grade Pricing
Debt Instrument [Line Items]
Credit Spread	0.85%
Unsecured term loans | $200,000 unsecured term loan due 2023 | Kite Realty Group, L.P. | Maximum | LIBOR | Leverage-Based Pricing
Debt Instrument [Line Items]
Credit Spread	1.85%
Unsecured term loans | $200,000 unsecured term loan due 2023 | Kite Realty Group, L.P. | Maximum | LIBOR | Investment Grade Pricing
Debt Instrument [Line Items]
Credit Spread	1.65%
Unsecured term loans | $120,000 unsecured term loan due 2024
Debt Instrument [Line Items]
Gross debt	$ 120,000	120,000
Unsecured term loans | $120,000 unsecured term loan due 2024 | Minimum | LIBOR
Debt Instrument [Line Items]
Credit Spread	1.20%
Unsecured term loans | $120,000 unsecured term loan due 2024 | Maximum | LIBOR
Debt Instrument [Line Items]
Credit Spread	1.70%
Unsecured term loans | $120,000 unsecured term loan due 2024 | Kite Realty Group, L.P.
Debt Instrument [Line Items]
Gross debt	$ 120,000
Unsecured term loans | $120,000 unsecured term loan due 2024 | Kite Realty Group, L.P. | Minimum | LIBOR | Leverage-Based Pricing
Debt Instrument [Line Items]
Credit Spread	1.20%
Unsecured term loans | $120,000 unsecured term loan due 2024 | Kite Realty Group, L.P. | Minimum | LIBOR | Investment Grade Pricing
Debt Instrument [Line Items]
Credit Spread	0.80%
Unsecured term loans | $120,000 unsecured term loan due 2024 | Kite Realty Group, L.P. | Maximum | LIBOR | Leverage-Based Pricing
Debt Instrument [Line Items]
Credit Spread	1.70%
Unsecured term loans | $120,000 unsecured term loan due 2024 | Kite Realty Group, L.P. | Maximum | LIBOR | Investment Grade Pricing
Debt Instrument [Line Items]
Credit Spread	1.65%
Unsecured term loans | $150,000 unsecured term loan due 2026
Debt Instrument [Line Items]
Gross debt	$ 150,000	$ 150,000
Unsecured term loans | $150,000 unsecured term loan due 2026 | Minimum | LIBOR
Debt Instrument [Line Items]
Credit Spread	1.20%
Unsecured term loans | $150,000 unsecured term loan due 2026 | Maximum | LIBOR
Debt Instrument [Line Items]
Credit Spread	1.70%
Unsecured term loans | $150,000 unsecured term loan due 2026 | Kite Realty Group, L.P.
Debt Instrument [Line Items]
Gross debt	$ 150,000
Unsecured term loans | $150,000 unsecured term loan due 2026 | Kite Realty Group, L.P. | Minimum | LIBOR | Leverage-Based Pricing
Debt Instrument [Line Items]
Credit Spread	1.20%
Unsecured term loans | $150,000 unsecured term loan due 2026 | Kite Realty Group, L.P. | Minimum | LIBOR | Investment Grade Pricing
Debt Instrument [Line Items]
Credit Spread	0.75%
Unsecured term loans | $150,000 unsecured term loan due 2026 | Kite Realty Group, L.P. | Maximum | LIBOR | Leverage-Based Pricing
Debt Instrument [Line Items]
Credit Spread	1.70%
Unsecured term loans | $150,000 unsecured term loan due 2026 | Kite Realty Group, L.P. | Maximum | LIBOR | Investment Grade Pricing
Debt Instrument [Line Items]
Credit Spread	1.60%

XML

MORTGAGE AND OTHER INDEBTEDNESS - Schedule of Debt Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Disclosure [Abstract]
Amortization of debt issuance costs	$ 650	$ 578

XML

DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) derivativeContract	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) derivativeContract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, average cap interest rate	3.72%
Interest rate fair value hedge asset at fair value	$ 5,600
Interest rate fair value hedge liability at fair value	17,800		$ 35,700
Loss reclassified to earnings	4,100	$ 1,300
Interest expense	25,514	$ 12,242
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 155,000		$ 150,000
Number of interest rate swap contracts | derivativeContract	2		2
Blended fixed interest rate	4.52%		1.356%
Interest rate fair value hedge asset at fair value	$ 10,500
Interest Rate Swap | LIBOR
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Blending floating interest rate of LIBOR	3.70%
Decrease As Hedged Forecasted Interest Payments Occur
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest expense	$ 2,200
Accrued Interest
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate fair value hedge liability at fair value	1,200		$ 1,000
Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 720,000
Number of interest rate swap contracts | derivativeContract	12
Cash Flow Hedging | Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 470,000

XML

SHAREHOLDERS’ EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended
	Apr. 08, 2022	Apr. 30, 2022	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Feb. 28, 2021	Feb. 23, 2021
Class of Stock [Line Items]
Common dividends declared (USD per share)			$ 0.19	$ 0.15
Common shares, par value (in USD per share)			$ 0.01		$ 0.01
Aggregate value of shares authorized to be repurchased						$ 150.0
Number of shares repurchased (in shares)			0
Subsequent Event
Class of Stock [Line Items]
Common dividends declared (USD per share)	$ 0.20
Aggregate value of shares authorized to be repurchased		$ 300.0
Increase to value of shares authorized to be repurchased		$ 150.0
Private Placement
Class of Stock [Line Items]
Aggregate sales price of shares authorized to be sold under offering program							$ 150.0
Common shares, par value (in USD per share)							$ 0.01
Shares sold under under offing program (in shares)			0

XML

EARNINGS PER SHARE OR UNITS (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Weighted average limited partner units outstanding, basic (in shares)	2,400,000	2,500,000
Dilutive impact (in shares)	0	0

XML

COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2022 USD ($)
Guarantor Obligations [Line Items]
Letters of credit outstanding	$ 1,500,000
Letters of credit outstanding, amount advanced	0
Repayment Guarantee
Guarantor Obligations [Line Items]
Current value of obligation	5,900,000
Repayment Guarantee | Construction Loan
Guarantor Obligations [Line Items]
Current value of obligation	11,800,000
Co-venturer
Guarantor Obligations [Line Items]
Construction loan payable	$ 33,600,000
Embassy Suites Joint Venture
Guarantor Obligations [Line Items]
Ownership percentage in equity method investment	35.00%
Embassy Suites Joint Venture | Construction Loans
Guarantor Obligations [Line Items]
Line of credit facility, maximum borrowing capacity	$ 33,800,000

XML

SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions	1 Months Ended		3 Months Ended
	May 06, 2022	Apr. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Feb. 28, 2021
Subsequent Event [Line Items]
Aggregate value of shares authorized to be repurchased					$ 150.0
Mortgages payable
Subsequent Event [Line Items]
Repayments of debt			$ 1.0
Interest Rate			4.43%
Revolving line of credit
Subsequent Event [Line Items]
Interest Rate			1.55%	1.20%
Subsequent Event
Subsequent Event [Line Items]
Increase to value of shares authorized to be repurchased		$ 150.0
Aggregate value of shares authorized to be repurchased		$ 300.0
Subsequent Event | Mortgages payable
Subsequent Event [Line Items]
Repayments of debt	$ 11.4
Subsequent Event | Mortgages payable | Fixed Rate Debt
Subsequent Event [Line Items]
Interest Rate	4.65%
Subsequent Event | Revolving line of credit
Subsequent Event [Line Items]
Repayments of debt	$ 125.0
Subsequent Event | Two Tenant Building In Dallas MSA
Subsequent Event [Line Items]
Gross purchase price	$ 21.9