Kite Realty Group Reports Fourth Quarter and Full Year 2025 Operating Results and Provides 2026 Guidance

Why It Matters

The results signal a robust earnings recovery and balance‑sheet strength for a REIT focused on high‑growth Sun Belt markets, positioning KRG for continued dividend growth and investor confidence.

Key Takeaways

• Net income rose to $298.7M, up from $4.1M.
• Leased 4.6M sq ft at 13.8% cash spreads.
• Formed $1B joint ventures with GIC.
• Sold assets for $621.7M, reducing power‑center exposure.
• Repurchased 13M shares for $300M, boosting EPS.

Pulse Analysis

Kite Realty Group’s 2025 performance illustrates how disciplined capital allocation can revive a REIT’s profitability. After years of modest earnings, the company leveraged a strong leasing market to secure high‑quality tenants at attractive cash‑leasing spreads, driving revenue growth while keeping operating expenses in check. The strategic partnership with sovereign wealth fund GIC not only injected $1 billion of gross asset value but also diversified KRG’s risk profile, aligning it with a globally respected investor and enhancing its development pipeline.

Operationally, KRG’s aggressive disposition strategy removed underperforming power‑center assets, freeing up capital for higher‑margin grocery‑anchored and mixed‑use properties. The $621.7 million in sales, combined with a $300 million share‑repurchase program, sharpened the balance sheet and lifted earnings per share, enabling a 7.4% dividend increase. With a net‑debt‑to‑adjusted‑EBITDA ratio of 4.9×, the REIT maintains sufficient liquidity to fund future acquisitions and sustain its dividend policy.

Looking ahead, the 2026 guidance of $0.36‑$0.42 net income per share and $2.06‑$2.12 NAREIT/Core FFO reflects confidence in continued lease‑up momentum and stable cash flows. Investors should watch the execution of the GIC joint ventures and the company’s ability to sustain high leasing spreads amid potential interest‑rate headwinds. If KRG can replicate its 2025 leasing pace and disciplined asset management, it stands to reinforce its position as a leading Sun Belt REIT and deliver consistent shareholder returns.

Kite Realty Group Reports Fourth Quarter and Full Year 2025 Operating Results and Provides 2026 Guidance

February 17, 2026 08:00 ET · Source: Kite Realty Group Trust

INDIANAPOLIS, Feb. 17, 2026 (GLOBE NEWSWIRE) — Kite Realty Group (NYSE: KRG), a premier owner and operator of high‑quality, open‑air grocery‑anchored shopping centers and vibrant mixed‑use assets, reported today its operating results for the fourth quarter and year ended December 31, 2025.

• For the quarters ended December 31, 2025 and 2024, net income attributable to common shareholders was $180.8 million, or $0.84 per diluted share, compared to $21.8 million, or $0.10 per diluted share, respectively.

• For the years ended December 31, 2025 and 2024, net income attributable to common shareholders was $298.7 million, or $1.37 per diluted share, compared to $4.1 million, or $0.02 per diluted share, respectively.

Key operational highlights:

• Leased approximately 4.6 million sq ft in 2025 at 13.8 % comparable blended cash‑leasing spreads.

• Formed two joint ventures with GIC in 2025 totaling approximately $1.0 billion of gross asset value.

• Sold 13 properties and two land parcels in 2025 for $621.7 million in gross proceeds at KRG’s share, reducing power‑center exposure by roughly 400 basis points of total weighted annualized base rent (ABR).

• Repurchased 13.0 million common shares for $300.0 million at an average price of $23.00.

“The KRG team executed with focus and precision in a year defined by significant operational momentum and a series of critical steps taken to transform our portfolio,” said John A. Kite, Chairman and Chief Executive Officer. “We leased nearly five million square feet at compelling spreads and partnered with a premier institutional investor. We sharpened the portfolio through disciplined dispositions and took advantage of the opportunity to repurchase our shares at attractive prices – all while maintaining a strong, flexible balance sheet. The advancements we have made over the past year give us confidence as we enter 2026 with an enhanced portfolio, significant financial capacity, and a clear path forward.”

Full‑Year 2025 Highlights

• Executed 683 new and renewal leases representing approximately 4.6 million sq ft at comparable cash‑leasing spreads of 13.8 %.

• Executed 28 new anchor leases representing approximately 645,000 sq ft at comparable cash‑leasing spreads of 23.5 %.

• Cash‑leasing spreads of 20.3 % on a blended basis for comparable new and non‑option renewal leases.

Fourth‑Quarter 2025 Financial and Operational Results

• Executed 164 new and renewal leases representing approximately 1.3 million sq ft.

• Cash‑leasing spreads of 18.5 % on a blended basis for comparable new and non‑option renewal leases.

• Blended cash‑leasing spreads of 12.8 % on 113 comparable leases (21.8 % on 35 new leases, 14.5 % on 40 non‑option renewals, 6.2 % on 38 option renewals).

Retail portfolio leased percentage: 95.1 % at December 31, 2025 (up 120 basis points sequentially).

Small‑shop leased percentage: 92.3 % at December 31, 2025 (up 50 basis points sequentially).

Anchor leased percentage: 96.7 % at December 31, 2025 (up 170 basis points sequentially).

Fourth‑Quarter 2025 Capital Allocation Activity

• Subsequent to quarter‑end, repurchased 2.2 million common shares at an average price of $23.92 per share for $52.3 million.

• Together with the third‑quarter share repurchase activity, total repurchases to date equal 13.0 million common shares at an average price of $23.00 per share for $300.0 million.

Fourth‑Quarter 2025 Balance Sheet Overview

• As of December 31, 2025, net debt to Adjusted EBITDA was 4.9×.

Dividend

• On February 14, 2026, the Board of Trustees declared a first‑quarter 2026 dividend of $0.29 per common share (a 7.4 % YoY increase). Payment is expected on or about April 16, 2026 to shareholders of record as of April 9, 2026.

• As previously announced on December 29, 2025, a special dividend of $0.145 per common share was paid on January 16, 2026 to shareholders of record as of January 9, 2026.

2026 Earnings Guidance

The Company expects to generate net income attributable to common shareholders of $0.36 to $0.42 per diluted share in 2026, NAREIT FFO of $2.06 to $2.12 per diluted share, and Core FFO of $2.06 to $2.12 per diluted share, based, in part, on the following assumptions:

• Interest expense, net of interest income (excluding unconsolidated JVs), of $121.0 million at the midpoint.

• Bad‑debt reserve of 1.0 % of total revenues at the midpoint.

• 2026 Same‑Property NOI range of 2.25 % to 3.25 %.

Reconciliation of 2026 Net Income Guidance to NAREIT and Core FFO Guidance

| | Low | High |

|---------------------|-------|------|

| Net income (per share) | $0.36 | $0.42 |

| Depreciation & amortization (per share) | $1.70 | $1.70 |

| NAREIT FFO (per share) | $2.06 | $2.12 |

| Non‑cash items (per share) | $0.00 | $0.00 |

| Core FFO (per share) | $2.06 | $2.12 |

Earnings Conference Call

Kite Realty Group will hold a conference call to discuss its financial results on Tuesday, February 17, 2026, at 11:00 a.m. Eastern Time. A live webcast will be available on KRG’s website.

About Kite Realty Group

Kite Realty Group (NYSE: KRG) is a REIT that owns and operates a high‑quality portfolio of open‑air shopping centers and mixed‑use destinations, concentrated in high‑growth Sun Belt and select strategic gateway markets. As of December 31, 2025, the Company owned interests in 169 U.S. open‑air shopping centers and mixed‑use assets, comprising approximately 27.3 million sq ft of gross leasable space. For more information, visit kiterealty.com.

Safe Harbor

This release contains 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 that may not be realized and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by the forward‑looking statements.

Risks and uncertainties that could cause such differences include, but are not limited to, economic, business, banking, real‑estate and market conditions; financing risks; interest‑rate volatility; tenant credit quality; competitive environment; acquisition, disposition, development and joint‑venture risks; property‑ownership and management risks; REIT‑status qualification; environmental liabilities; e‑commerce impacts; demographic shifts; business‑continuity disruptions; geographic concentration; civil unrest, terrorism, natural disasters, climate change, pandemics; regulatory changes; consumer‑behavior changes; ESG considerations; insurance costs; cyber‑security risks; AI‑related risks; and other factors detailed in the Company’s filings with the SEC, including the “Risk Factors” section of its 2024 Form 10‑K and quarterly Form 10‑Q reports. The Company does not intend to update these forward‑looking statements except as required by law.

Non‑GAAP Financial Measures

This earnings release also includes certain forward‑looking non‑GAAP information. These non‑GAAP measures should be considered alongside, but not as alternatives to, net income (loss) as a measure of operating performance. Definitions and reconciliations are provided in the accompanying pages.

Consolidated Balance Sheets (unaudited, dollars in thousands)

| | Dec 31 2025 | Dec 31 2024 |

|---------------------|------------|------------|

| Assets | | |

| Investment properties, at cost | $7,003,479 | $7,634,191 |

| Less: accumulated depreciation | (1,656,191) | (1,587,661) |

| Net investment properties | $5,347,288 | $6,046,530 |

| Cash and cash equivalents | $36,761 | $128,056 |

| Tenant and other receivables | $127,865 | $125,768 |

| Restricted cash and escrow deposits | $441,605 | $5,271 |

| Deferred costs, net | $181,553 | $238,213 |

| Short‑term deposits | — | $350,000 |

| Prepaid and other assets | $93,913 | $104,627 |

| Investments in unconsolidated subsidiaries | $364,407 | $19,511 |

| Assets associated with investment properties held for sale | $71,105 | $73,791 |

| Total assets | $6,664,497 | $7,091,767 |

| Liabilities and Equity | | |

| Mortgage and other indebtedness, net | $3,025,478 | $3,226,930 |

| Accounts payable and accrued expenses | $221,118 | $202,651 |

| Deferred revenue and other liabilities | $221,813 | $246,100 |

| Liabilities associated with investment properties held for sale | $4,314 | $4,009 |

| Total liabilities | $3,472,723 | $3,679,690 |

| Equity | | |

| Common shares (490 M authorized; 208,979,900 issued) | $2,090 | $2,197 |

| Additional paid‑in capital | $4,612,280 | $4,868,554 |

| Accumulated other comprehensive income | $23,079 | $36,612 |

| Accumulated deficit | $(1,563,840) | $(1,595,253) |

| Total shareholders’ equity | $3,073,609 | $3,312,110 |

| Noncontrolling interests | $1,920 | $1,893 |

| Total equity | $3,075,529 | $3,314,003 |

| Total liabilities and equity | $6,664,497 | $7,091,767 |

Consolidated Statements of Operations (unaudited, dollars in thousands, except per‑share amounts)

| | 3 Months Ended Dec 31 2025 | 3 Months Ended Dec 31 2024 | Year Ended Dec 31 2025 | Year Ended Dec 31 2024 |

|---------------------|---------------------------|---------------------------|------------------------|------------------------|

| Revenue | | | | |

| Rental income | $198,224 | $209,965 | $830,771 | $826,548 |

| Other property‑related revenue | $5,042 | $1,805 | $9,354 | $6,268 |

| Fee income | $1,671 | $441 | $4,240 | $4,663 |

| Total revenue | $204,937 | $212,211 | $844,365 | $837,479 |

| Expenses | | | | |

| Property operating | $28,870 | $29,200 | $116,113 | $113,601 |

| Real estate taxes | $24,441 | $25,646 | $104,531 | $103,893 |

| General, administrative and other | $15,628 | $13,549 | $55,459 | $52,558 |

| Depreciation & amortization | $87,799 | $97,009 | $373,287 | $393,335 |

| Impairment charges | $12,544 | — | $51,849 | $66,201 |

| Total expenses | $169,282 | $165,404 | $701,239 | $729,588 |

| Other (expense) income | | | | |

| Interest expense | $(32,409) | $(32,706) | $(132,577) | $(125,691) |

| Income tax (expense) benefit of taxable REIT subsidiaries | $(152) | $186 | $(467) | $(139) |

| Gain (loss) on sales of operating properties, net | $183,107 | — | $291,962 | $(864) |

| Net gains from out‑lot sales | — | $2,505 | $6,096 | $4,363 |

| Loss on extinguishment of debt | — | $(180) | — | $(180) |

| Equity in (loss) earnings of unconsolidated subsidiaries | $(3,186) | $43 | $(11,650) | $(1,158) |

| Gain on sale of unconsolidated property | … (additional line items continue) | | | |

The remainder of the financial tables follows the same format as presented in the original release.