One-glance verdict
Within fair range
$22.60 our estimate vs market $25.77
Wall Street consensus: $28.30 (25.2% higher than our fair-value estimate)
14% above our estimate
Fundamentals snapshot
Kite Realty Group Trust
KRG · NYQ · Real Estate · REIT - Retail
Current price
$25.77
52-week range
$21.89 - $29.92
Market cap
$5.24B
Balance sheet
Stretched
1.47x Concerning
Net debt $2.81B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 11.3% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Risk Forward P/E (75.8x) is higher than trailing (16.0x) - earnings are expected to drop.
- Risk Net debt grew 0.9% over 3 years.
What this company does
Kite Realty Group Trust
Kite Realty Group Trust owns and operates shopping centers and mixed-use properties, mainly in growing areas of the United States. This means they make money by renting out space in these locations to businesses, and their success depends on keeping those spaces filled and attractive to shoppers. The company's focus on "Sun Belt" states suggests they are targeting areas with strong economic growth, which can lead to more shoppers and higher rental income.
How the company got here
Kite Realty Group Trust (KRG) has roots tracing back to the Kite family's real estate business, which began in Indianapolis in 1961. The company officially became a publicly traded Real Estate Investment Trust (REIT) in 2004. A REIT is a company that owns, operates, or finances income-producing real estate, allowing individuals to invest in large-scale real estate portfolios. KRG has grown through strategic acquisitions and developments, focusing on enhancing its portfolio quality and maximizing long-term value. The company has over six decades of experience in real estate development, operation, and investment, employing a hands-on approach to its business.
What it actually does
Kite Realty Group Trust owns and manages a portfolio of open-air shopping centers and mixed-use properties. Think of these as outdoor malls or community hubs where you'd find everyday stores, grocery stores, restaurants, and service providers. The company makes money primarily by collecting rent from the businesses that lease space in these properties. Essentially, KRG acts as a landlord, providing retail spaces that are convenient and visible to shoppers, rather than owning the stores themselves.
Open-Air Shopping Centers
This is Kite Realty Group's main business. They own and operate neighborhood and community shopping centers that are open-air, meaning they don't have a roof over the entire complex. These centers are typically anchored by grocery stores or other essential retailers, ensuring a steady stream of shoppers. The company earns rental income from a variety of tenants, including grocers, pharmacies, restaurants, fitness studios, and other local service businesses that lease space within these centers.
Mixed-Use Properties
Kite Realty Group also develops and manages properties that combine different types of spaces, such as retail areas alongside offices, dining establishments, entertainment venues, or even residential-style amenities. These mixed-use developments aim to create vibrant destinations that offer a variety of services and experiences. The revenue from these properties comes from leasing retail spaces to businesses, similar to their open-air shopping centers, but with the added potential for income from other integrated components.
What management is betting on now
Kite Realty Group's current strategy, often referred to as 'Project Elevate,' focuses on refining its portfolio to be more resilient and growth-oriented. This involves selling off less profitable or non-core assets and concentrating on high-quality, grocery-anchored neighborhood centers and mixed-use properties. Management is prioritizing locations in high-growth areas, particularly in the Sun Belt region of the U.S., believing these markets offer the best potential for increasing rental income and property values. They are also actively managing their balance sheet to ensure financial flexibility for future investments and to manage interest rate environments.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-29.49M
FY2025 Q1
$31.94M
FY2025 Q2
$91.66M
FY2025 Q3
$85.42M
FY2025 Q4
$68.63M
FY2026 Q1
$17.34M
FY2026 Q2
$88.93M
FY2026 Q3
$61.51M
Revenue
$190.28M
Net income
$-13.30M
Diluted EPS
-0.07
Operating cash flow
$103.54M
Free cash flow
$61.51M
Fetching…
Sources
Revenue
$196.26M
Net income
$161.30M
Diluted EPS
0.79
Operating cash flow
$126.78M
Free cash flow
$88.93M
Fetching…
Sources
Revenue
$200.70M
Net income
$11.39M
Diluted EPS
0.06
Operating cash flow
$49.77M
Free cash flow
$17.34M
Fetching…
Sources
Revenue
$204.15M
Net income
$180.82M
Diluted EPS
0.83
Operating cash flow
$106.58M
Free cash flow
$68.63M
Fetching…
Sources
Revenue
$205.06M
Net income
$-16.21M
Diluted EPS
-0.07
Operating cash flow
$116.18M
Free cash flow
$85.42M
Fetching…
Sources
Revenue
$213.40M
Net income
$110.32M
Diluted EPS
0.50
Operating cash flow
$132.83M
Free cash flow
$91.66M
Fetching…
Sources
Revenue
$221.76M
Net income
$23.73M
Diluted EPS
0.11
Operating cash flow
$74.06M
Free cash flow
$31.94M
Fetching…
Sources
Revenue
$214.72M
Net income
$21.82M
Diluted EPS
0.10
Operating cash flow
$110.98M
Free cash flow
$-29.49M
Fetching…
Sources
Is it cheap or expensive?
Fair value $22.60 vs current price $25.77
Wall Street consensus is the average analyst price target: $28.30 (25.2% higher than our fair-value estimate).
Our most-likely fair value is $22.60 a share — about 12.3% away from today's price of $25.77, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $2.8B. Interest coverage 1.5x.
Net debt
$2.81B
Interest coverage
1.47x
Kite Realty Group Trust's profit covers its interest bill about 1.5 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
KRG
BASELINE
Kite Realty Group Trust
Total debt $2.84B Interest coverage 1.47x This is the baseline the peer rows are being compared against.
Total debt $2.52B Interest coverage 1.93x +31% vs KRG Carries about 1.3x more debt cushion than KRG.
Total debt $5.38B Interest coverage 2.24x +52% vs KRG Carries about 1.5x more debt cushion than KRG.
Total debt $5.13B Interest coverage 2.82x +92% vs KRG Carries about 1.9x more debt cushion than KRG.
Total debt $8.59B Interest coverage 2.17x +48% vs KRG Carries about 1.5x more debt cushion than KRG.
Total debt $4.97B Interest coverage 2.50x +70% vs KRG Carries about 1.7x more debt cushion than KRG.
What you should know
The case for and against KRG
3 Rewards
3 Risks
Rewards
-
Returns 11.3% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 7/10 years.
-
Trades at 16.0x P/E vs peer median 23.9x (33.2% cheaper).
Risks
-
Forward P/E (75.8x) is higher than trailing (16.0x) - earnings are expected to drop.
-
Net debt grew 0.9% over 3 years.
-
Insider ownership is only 0.8% (peer median: 0.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.01x
Forward P/E
75.79x
P/B
1.86x
P/S
6.61x
EV/EBITDA
17.12x
PEG ratio
3.14x
Profitability
How much profit each dollar creates
Gross margin
73.0%
Operating margin
23.7%
Net margin
42.9%
ROE
11.3%
ROA
1.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.99x
Current ratio
1.97x
Quick ratio
0.91x
Total debt
$2.84B
Total cash
$32.54M
Growth
How the business has been compounding
Revenue TTM
$791.38M
Revenue 5Y CAGR
22.6%
EPS TTM
1.61
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$386.67M
Free CF TTM
$277.65M
FCF margin
35.1%
Dividend
Shareholder payout
Yield
4.5%
Payout ratio
70.8%
Last ex-div date
2027-01-08