Leased approximately 4.6 million square feet 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 approximately 400 basis points of total weighted annualized base rent (ABR) To date, repurchased 13.0 million common shares for $300.0 million at an average price of $23.00 Company provides initial 2026 outlook
"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
Generated Core FFO of the Operating Partnership of $460.4 million, or $2.06 per diluted share, representing a 3.5% year-over-year increase.
Generated NAREIT FFO of the Operating Partnership of $468.6 million, or $2.10 per diluted share, representing a 1.4% year-over-year increase.
Same Property Net Operating Income (NOI) increased by 2.9%.
Executed 683 new and renewal leases representing approximately 4.6 million square feet at comparable cash leasing spreads of 13.8%.
Cash leasing spreads of 20.3% on a blended basis for comparable new and non-option renewal leases.
Executed 28 new anchor leases representing approximately 645,000 square feet at comparable cash leasing spreads of 23.5%.
Fourth Quarter 2025 Financial and Operational Results
Generated Core FFO of the Operating Partnership of $112.9 million, or $0.51 per diluted share.
Generated NAREIT FFO of the Operating Partnership of $113.1 million, or $0.52 per diluted share.
Same Property NOI increased by 1.7%.
Executed 164 new and renewal leases representing approximately 1.3 million square feet.
Blended cash leasing spreads of 12.8% on 113 comparable leases, including 21.8% on 35 comparable new leases, 14.5% on 40 comparable non-option renewals, and 6.2% on 38 comparable option renewals.
Cash leasing spreads of 18.5% on a blended basis for comparable new and non-option renewal leases.
Operating retail portfolio ABR per square foot of $22.63 at December 31, 2025, a 7.0% increase year-over-year.
Retail portfolio leased percentage of 95.1% at December 31, 2025, a 120-basis point increase sequentially.
Anchor leased percentage of 96.7% at December 31, 2025, a 170-basis point increase sequentially.
Small shop leased percentage of 92.3% at December 31, 2025, a 50-basis point increase sequentially.
Portfolio leased-to-occupied spread at period end of 340 basis points, which represents $37.0 million of signed-not-open NOI.
Fourth Quarter 2025 Capital Allocation Activity
As previously announced, sold a portfolio that includes eight large-format power and community centers, representing 2.1 million square feet of total owned GLA, for gross proceeds of $429.0 million. Additionally, sold Paradise Valley Marketplace (Phoenix MSA), an 80,951 square foot center, for gross proceeds of $45.0 million.
In the fourth quarter, repurchased 7.7 million common shares, at an average price of $23.00 per share, for $177.8 million.
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, to date, repurchased 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, the Company's net debt to Adjusted EBITDA was 4.9x.
Dividend
As previously announced on December 29, 2025, the Company's Board of Trustees declared a special dividend of $0.145 per common share, which was paid on January 16, 2026, to shareholders of record as of January 9, 2026.
On February 14, 2026, the Company's Board of Trustees declared a first quarter 2026 dividend of $0.29 per common share, which represents a 7.4% year-over-year increase. The first quarter dividend will be paid on or about April 16, 2026, to shareholders of record as of April 9, 2026.
2026 Earnings GuidanceThe 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:
2026 Same Property NOI range of 2.25% to 3.25%.
Bad debt reserve of 1.0% of total revenues at the midpoint.
Interest expense, net of interest income, excluding unconsolidated joint ventures, of $121.0 million at the midpoint.
The following table reconciles the Company's 2026 net income guidance range to the Company's 2026 NAREIT and Core FFO guidance ranges:
Low
High
Net income
$
0.36
$
0.42
Depreciation and amortization
1.70
1.70
NAREIT FFO
$
2.06
$
2.12
Non-cash items
0.00
0.00
Core FFO
$
2.06
$
2.12
Earnings Conference Call
Kite Realty Group will conduct a conference call to discuss its financial results on Tuesday, February 17, 2026, at 11:00 a.m. Eastern Time. A live webcast of the conference call will be available on KRG's website at www.kiterealty.com or at the following link: KRG Fourth Quarter 2025 Webcast. The dial-in registration link is: KRG Fourth Quarter 2025 Teleconference Registration. In addition, a webcast replay link will be available on KRG's website.
About Kite Realty Group
Kite Realty Group (NYSE:KRG) is a real estate investment trust (REIT) that owns and operates a high-quality portfolio of open-air shopping centers and mixed-use destinations. The Company's portfolio is concentrated in high-growth Sun Belt and select strategic gateway markets. Publicly listed since 2004, KRG brings more than six decades of experience in developing, operating, and investing in real estate, using a disciplined, hands-on approach to enhance portfolio quality and maximize long-term value for all stakeholders. 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 square feet of gross leasable space. For more information, please visit kiterealty.com.
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Safe Harbor
This release, 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.
Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to: economic, business, banking, 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 from an economic slowdown or recession, federal government shutdown, disruptions related to tariffs and other trade or sanction issues, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending); financing risks, including the availability of, and costs associated with, sources of liquidity; the Company's ability to refinance, or extend the maturity dates of, the Company's indebtedness; the level and volatility of interest rates; the financial stability of the Company's tenants; the competitive environment in which the Company operates, including potential oversupplies of, or a reduction in demand for, rental space; acquisition, disposition, development and joint venture risks, including the ability to complete them on the terms and timing anticipated; 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; the Company's ability to maintain the Company's status as a real estate investment trust for U.S. federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; 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; business continuity disruptions and a deterioration in our tenants' 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; risks related to our current geographical concentration of properties in the states of Texas, Florida, and North Carolina and the metropolitan statistical areas of New York, Atlanta, Seattle, Chicago, and Washington, D.C.; civil unrest, acts of violence, terrorism or war, acts of God, climate change, epidemics, pandemics, 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 the Company's properties or the ability of its tenants to operate, and the costs of complying with such changed laws and government regulations; possible changes in consumer behavior due to public health crises and the fear of future pandemics; our ability to satisfy environmental, social or governance standards set by various constituencies; insurance costs and coverage, especially in Florida and Texas coastal areas and North Carolina; risks associated with cyber attacks and the loss of confidential information and other business disruptions; risks associated with the use of artificial intelligence and related tools; other factors affecting the real estate industry generally; and other risks identified in reports the Company files with the Securities and Exchange Commission or in other documents that it publicly disseminates, including, in particular, the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in the Company's quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
This Earnings Release also includes certain forward-looking non-GAAP information. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of our operating performance. Please see the following pages for the corresponding definitions and reconciliations of such non-GAAP financial measures.
Kite Realty GroupConsolidated Balance Sheets(dollars in thousands)(unaudited)
December 31,2025
December 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, including accrued straight-line rentof $70,940 and $67,377, respectively
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:
Liabilities:
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
Commitments and contingencies
Limited Partners' interests in the Operating Partnership
116,245
98,074
Equity:
Common shares, $0.01 par value, 490,000,000 shares authorized,208,979,900 and 219,667,067 shares issued and outstanding atDecember 31, 2025 and 2024, respectively
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
Kite Realty GroupConsolidated Statements of Operations(dollars in thousands, except per share amounts)(unaudited)
Three Months Ended December 31,
Year EndedDecember 31,
2025
2024
2025
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 and 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
