One-glance verdict
Overvalued
$15.56 our estimate vs market $24.78
Wall Street consensus: $30.78 (97.8% higher than our fair-value estimate)
59% above our estimate, beyond the bull case
Fundamentals snapshot
Kite Realty Group Trust
KRG · NYQ · Real Estate · REIT - Retail
Current price
$24.78
52-week range
$21.33 - $29.92
Market cap
$5.08B
Balance sheet
Stretched
1.47x Concerning
Net debt $2.76B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 10.7% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Risk Forward P/E (72.9x) is higher than trailing (15.5x) - 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 is a special type of company called a Real Estate Investment Trust (REIT), which owns properties like shopping centers and is required to pass along most of the rent it collects to its owners. The company makes its money by leasing space in its 165 open-air shopping centers, primarily to essential retailers like grocery stores in fast-growing parts of the southern United States. This matters because having dependable tenants who sell everyday necessities can provide a steady and predictable stream of income for the company and its investors.
How the company got here
Kite Realty Group Trust, which has roots in a family real estate business from 1961, became a publicly traded company in 2004. A major turning point was its 2021 merger with Retail Properties of America, a move that significantly increased the company's size and expanded its portfolio of properties. This merger established KRG as one of the top five largest owners of open-air shopping centers in the U.S. Over the years, the company has grown by acquiring other real estate portfolios and developing its own properties.
What it actually does
Kite Realty Group is a real estate investment trust (REIT), which is a company that owns and often operates income-producing real estate. KRG's focus is on open-air shopping centers and mixed-use destinations, which are properties that combine retail, and sometimes office or residential spaces. You can think of them as the landlord for the stores you visit in many outdoor shopping plazas. They primarily make money by leasing space to a variety of tenants, especially grocery stores and other businesses that provide daily necessities.
Rental Operations
The main way Kite Realty Group makes money is by collecting rent from tenants in its shopping centers. This provides a steady stream of income. The company focuses on leasing to a mix of businesses, with a special emphasis on grocery stores, which they refer to as being 'grocery-anchored'. This is because grocery stores tend to attract a consistent flow of shoppers, which is also good for the other tenants in the shopping center. This rental income from a diverse group of tenants across many properties forms the vast majority of their business.
What management is betting on now
Management's current strategy is focused on owning and improving high-quality shopping centers in fast-growing areas, particularly in the Sun Belt region of the United States. They are also engaging in 'capital recycling' (selling off properties in slower-growth areas to reinvest in more promising locations and developments). The company is also focused on maintaining a strong balance sheet (a snapshot of a company's financial health), which gives them the flexibility to invest in new opportunities. By concentrating on necessity-based retail like grocery stores, they aim to have a business that can perform well even when the broader economy slows down.
Price history
How the share price has moved
—
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 Q4
$37.87M
FY2026 Q1
$17.34M
FY2026 Q2
$88.93M
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
$37.87M
Fetching…
Sources
Revenue
$205.06M
Net income
$-16.21M
Diluted EPS
-0.07
Operating cash flow
$116.18M
Free cash flow
—
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
Revenue
$207.25M
Net income
$16.73M
Diluted EPS
0.08
Operating cash flow
$112.36M
Free cash flow
—
Fetching…
Sources
Is it cheap or expensive?
Fair value $15.56 vs current price $24.78
Wall Street consensus is the average analyst price target: $30.78 (97.8% higher than our fair-value estimate).
Our most-likely fair value is $15.56 a share — about 37.2% below today's price of $24.78, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $2.8B. Interest coverage 1.5x.
Net debt
$2.76B
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 $2.91B Interest coverage 1.47x This is the baseline the peer rows are being compared against.
Total debt $2.45B Interest coverage 1.79x +22% vs KRG Carries about 1.2x 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 $5.14B Interest coverage 2.82x +92% vs KRG Carries about 1.9x more debt cushion than KRG.
Total debt $8.86B Interest coverage 2.17x +48% vs KRG Carries about 1.5x more debt cushion than KRG.
Total debt $4.85B 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 10.7% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 7/10 years.
-
Trades at 15.5x P/E vs peer median 24.7x (37.2% cheaper).
Risks
-
Forward P/E (72.9x) is higher than trailing (15.5x) - 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)
15.49x
Forward P/E
72.88x
P/B
1.73x
P/S
6.30x
EV/EBITDA
16.43x
PEG ratio
3.14x
Profitability
How much profit each dollar creates
Gross margin
73.2%
Operating margin
24.0%
Net margin
41.8%
ROE
10.7%
ROA
1.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.96x
Current ratio
0.93x
Quick ratio
0.47x
Total debt
$2.91B
Total cash
$144.71M
Growth
How the business has been compounding
Revenue TTM
$806.16M
Revenue 5Y CAGR
22.6%
EPS TTM
1.60
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$399.31M
Free CF TTM
$277.65M
FCF margin
34.4%
Dividend
Shareholder payout
Yield
4.7%
Payout ratio
70.0%
Last ex-div date
2026-10-09