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Kite Realty Group Trust
Presentation Title
    Investor Presentation
     Information as of June 30, 2010
COMPANY OVERVIEW
                                                                                         Information as of June 30, 2010




                                 55 Operating Properties in 9 states
                                 Retail Operating Portfolio 91% leased – 100 basis point increase from Q1
Stable Operating Portfolio       Diverse tenant base: Largest tenant represents only 3.3% of annualized base rent
                                 5 mile demographics: Population 120,000; Average HHI $83,000



                                 562,000 square feet of leasing production during 1H 2010
                                 325,000 square feet of new and renewal leases in various stages of negotiation
Increased Leasing Productivity   On pace for approximately 1 million square feet in 2010 - highest level in company history
                                 21 new and renewal anchor leases for 770,000 square feet completed since Q1 2009



                                 No remaining 2010 debt maturities
                                 $170 million of property refinancings and extensions since early 2009
Proven Debt Management           Of the 2011 maturities, only 2 are CMBS loans totaling $20 million
                                 82% of maturities through 2012 held by relationship lenders



                                 Two in-process developments – Eddy Street Commons & Cobblestone Plaza
                                    - Percent leased increased 6.6% quarter over quarter to 81% leased
NOI Upside                          - Currently only 43% occupied
                                 Additional $3.5 million of annualized rent from executed anchor tenant leases at operating
                                  and redevelopment properties anticipated to commence over the next 12-18 months




                                                                                                                              1
GROWTH SOURCES



Rent commencement on executed Jr anchor leases
     $3.5 million in annualized rent anticipated to commence over the next 12-18 months


Jr anchor leases in negotiation


Increase small shop occupancy
     From current 76% to historical 80-85%


Execute on redevelopments
     Leasing nearly complete at 3 of 5 redevelopments


Complete current developments
     81% leased but only 43% occupied


Future development potential




                                                                                          2
IMPROVING FFO QUALITY

                    We have been successful in improving the quality and predictability of our
                    FFO stream.


                                      Real Estate Rental Operations as a Percent of FFO

      100%

                                                                                                   90%

                                                                                82%
      80%




                                59%
      60%




      40%




      20%
                            2008 Actual                                    2009 Actual       2010 Projection (1)

(1)      2010 projection is based on the Company’s previously released earnings guidance.




                                                                                                                   3
LEASING PRODUCTION

                Improved leasing production has become a company-wide focus
                We are on pace to achieve approximately 1 million square feet of production for 2010, the
                highest level in company history
                21 new and renewal anchor leases for 770,000 square feet completed over the last 5 quarters




                                     Total Leasing Production – New and Renewal Leases
      400,000

                                                                                                     345,600
      350,000                                                                                                                                 325,000
                                                                                 300,300
      300,000


      250,000
                                                                                                                         216,200
                                         203,000
      200,000


      150,000                                                130,200


      100,000

                     39,100
       50,000


            0
                                                                                                                                                            (1)
                     Q1 2009             Q2 2009             Q3 2009             Q4 2009             Q1 2010             Q2 2010           In Negotiation

(1)       Currently negotiating 325,000 square feet of new and renewal leases as stated in the Company’s Q2 2010 earnings press release.


                                                                                                                                                                  4
DIVERSE TENANT BASE
                                                                                                                                 Information as of June 30, 2010
                                                                                                                                                    (unless otherwise noted)




                 Largest single retail tenant comprises only 3.3% of total annualized base rent
                 Top 10 retail tenants account for only 22.7% of total annualized base rent



                                                              Top 10 Retail Tenants
                                  Number                                    % of                  % of Portfolio
                                    Of                                     Owned                   Annualized                        S&P
          Tenant                 Locations                                  GLA                   Base Rent (1)                 Credit Rating (2)
       1 Publix                     6                                       5.4%                      3.3%                            n/a
       2 PetSmart                   6                                       2.7%                      2.9%                            BB
       3 Lowe's Home Improvement    2                                       2.4%                      2.5%                             A
       4 Ross Stores                5                                       2.7%                      2.4%                           BBB
       5 Dick's Sporting Goods      3                                       3.2%                      2.3%                            n/a
       6 Marsh Supermarkets         2                                       2.3%                      2.3%                            n/a
       7 Bed Bath & Beyond          5                                       2.5%                      2.2%                           BBB
       8 Staples                    4                                       1.7%                      1.7%                           BBB
       9 HEB Grocery                1                                       1.9%                      1.6%                            n/a
       10 Office Depot              5                                       2.4%                      1.5%                             B

             Total                                                          27.2%                       22.7%




(1)   Annualized base rent represents the monthly contractual rent for June 2010 for each applicable tenant multiplied by 12.
(2)   S&P credit ratings for parent company as of 8/16/10.

                                                                                                                                                                         5
DIVERSE TENANT BASE
                                                                                               Information as of June 30, 2010


                                                     Peer Group Assessment:
                                          Top Tenant as a Percent of Annualized Base Rent



18.0%
                                                                                                                       16.7%
16.0%
14.0%

12.0%                                                                                                        11.1%

10.0%

 8.0%                                                                                   6.7%       7.2%

 6.0%                                                                4.5%      4.6%
                                                          3.9%
 4.0%                                  3.2%     3.3%
          2.2%            2.7%
 2.0%
 0.0%
           WRI             FRT         KIM      KRG       RPT        DDR        REG     AKR         IRC       EQY      CDR


                        Bed Bath       Home                        Wal-Mart/                                          Giant
          Kroger                                Publix   TJ Maxx               Kroger   A&P      Supervalu   Publix
                         Beyond        Depot                        Sam’s                                             Foods




        Source: Company SEC filings.




                                                                                                                               6
STRONG DEMOGRAPHICS


          High quality assets with an average age of only eight years
          Approximately half of the current portfolio was developed by KRG
          Portfolio benefits from 100% non-owned anchor occupancy
          Strong household incomes surrounding operating portfolio and development pipelines



                                             Portfolio Demographics Comparison
                                           Operating Portfolio vs. Development Pipelines


                                                Radius                                             Radius
Operating Portfolio                        3 Mile     5 Mile        Development Pipeline      3 Mile    5 Mile


2009 Est. Population                        49,501    121,571       2009 Est. Population       60,042   155,798
2014 Est. Population                        55,139    134,542       2014 Est. Population       64,828   168,552
Projected Annual Growth                       2.3%       2.1%       Projected Annual Growth      1.6%       1.6%
Average HH Income                          $84,402    $83,469       Average HH Income         $87,331   $87,676


   Source: Applied Geographic Solutions.




                                                                                                                   7
STRONG DEMOGRAPHICS


       We have a history of selecting strong submarkets for investment
       Our Florida, Texas and Indiana portfolio incomes are significantly higher than
       statewide levels



                                                   Average Household Income

                $100,000
                                                                                                 $87,722
                                                                      $83,985
                                              $77,504
                  $80,000
                                   $66,469                  $66,397
                                                                                      $61,132
                  $60,000



                  $40,000
                                         Florida                  Texas                     Indiana

                                        Statewide Average      KRG Portfolio - 5 Mile Radius Average




Source: Applied Geographic Solutions.




                                                                                                           8
WELL-STAGGERED LEASE EXPIRATIONS
                                                                                                                             Information as of June 30, 2010



          Average 8.6% of total annualized rent is expected to roll each year from 2011
          through 2019
          Higher 2012-2015 rollover defers renewal negotiations to a potentially stronger
          leasing environment


                    Percentage of Lease Expiration by Total Annualized Base Rent (1)
                                                                                                                                                        19.8%
20.0%

18.0%

16.0%
                                                                                 13.8%
14.0%

12.0%                                                             10.8%
                                      10.1%
10.0%                   8.9%                         9.1%
                                                                                                              8.2%
8.0%
                                                                                                                            6.5%
                                                                                               5.8%
6.0%
                                                                                                                                          4.3%
4.0%       2.7%

2.0%

0.0%
           2010         2011          2012           2013          2014          2015          2016           2017          2018          2019       Thereafter




    (1)      Lease expirations of operating portfolio and excludes option periods and ground leases. Annualized base rent represents the monthly contractual
             rent for June 2010 for each applicable property multiplied by 12.
                                                                                                                                                                  9
DEVELOPMENT STATUS
                                                  Information as of June 30, 2010


     In-Process Developments



Eddy Street Commons at Notre Dame
     85% pre-leased or committed
     97% of projected costs incurred




Cobblestone Plaza, Ft. Lauderdale, FL
     77% pre-leased or committed with Whole Foods executed lease
     90% of projected costs incurred




Capital Summary    (Dollars in thousands)

     Eddy Street Estimated Project Costs:         $35,000
     Cobblestone Plaza Estimated Project Costs:   $52,000
     Total Cost Incurred as of 6/30/10:           ($80,794)
     Remaining Cost to be Spent:                   $6,206




                                                                              10
MANAGING LEVERAGE

                                                               Scheduled Debt Maturities (1)(2)(3)

             Extended or refinanced all 2010 debt maturities by February 2010
             2011 maturities are in process:
                      Only 2 CMBS loans totaling $20 million
                      5 of 7 property loans held on balance sheet were underwritten with more stringent 2008-09 standards
             Approximately 83% of debt maturities through 2012 are held on balance sheet by relationship banks including
             unsecured term loan

$200,000

$175,000

$150,000
                                          $55,000
$125,000
                                                                    $93,800
$100,000                                  $29,082
                                                                                                                                                                     $170,264
 $75,000                                  $13,549
                                                                                              $44,509                      $0
 $50,000
                                                                                                                        $3,482
                                          $68,243                   $65,296
 $25,000                                                                                      $42,839
                   $0                                                                                                   $31,459                   $38,302

     $0
                  2010                      2011                      2012                      2013                     2014                      2015              Thereafter


     Mortgage Debt              KRG Share of Unconsol. Mortgage Debt                         Construction Loans                   Revolving Credit Facility           Term Loan


       (1)     Dollars in thousands..
       (2)     Maturities exclude annual principal amortization.
       (3)     Amount due in 2012 includes the outstanding balance on our unsecured revolving credit facility, and assumes exercise of available extension option.

                                                                                                                                                                                  11
PEER GROUP ANALYSIS



   Debt Plus Preferred as a Percent of Gross Assets (1)(2)                                                    2010 Estimated AFFO Payout Ratio (2)(3)

65.0%                                                                                         100.0%


                                                          55.7%                                 90.0%
                  54.8%                                                                                              82.0%
55.0%
                                                                                                80.0%
                                                                                                                                              70.6%
45.0%                                                                                           70.0%

                                                                                                60.0%
35.0%
                                                                                                50.0%


25.0%                                                                                           40.0%
              Peer Average                                 KRG                                                    Peer Average                 KRG




        (1)   Source: Company filings. Calculation: (Consolidated Debt + Preferreds) / Gross Real Estate Assets
        (2)   Peer Group: AKR, CDR, DDR, EQY, FRT, IRC, KIM, REG, RPT, WRI
        (3)   Source: SNL Financial. Based on most recently announced quarterly dividend annualized




                                                                                                                                                        12
DISCLAIMER


This presentation contains certain statements that are not historical fact and may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-
looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results of the Company to differ materially from historical results or from any results expressed or
implied by such forward-looking statements, including, without limitation: national and local economic,
business, real estate and other market conditions, particularly in light of the current challenging economic
conditions; 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, its indebtedness; the level and volatility of
interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant
bankruptcies; the competitive environment in which the Company operates; acquisition, disposition,
development and joint venture risks; property ownership and management risks; the Company’s ability to
maintain its status as a real estate investment trust (“REIT”) for federal income tax purposes; potential
environmental and other liabilities; impairment in the value of real estate property the Company owns; risks
related to the geographical concentration of our properties in Indiana, Florida and Texas; assumptions
underlying our anticipated growth sources; and other factors affecting the real estate industry generally.
The Company refers you the documents filed by the Company from time to time with the Securities and
Exchange Commission, specifically the section titled “Business Risk Factors” in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2009, which discuss these and other factors that
could adversely affect the Company’s results. The Company undertakes no obligation to publicly update
or revise these forward-looking statements (including the FFO and net income estimates), whether as a
result of new information, future events or otherwise.




                                                                                                                 13

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Kite Realty Group Q2 2010 Investor Presentation

  • 1. Kite Realty Group Trust Presentation Title Investor Presentation Information as of June 30, 2010
  • 2. COMPANY OVERVIEW Information as of June 30, 2010 55 Operating Properties in 9 states Retail Operating Portfolio 91% leased – 100 basis point increase from Q1 Stable Operating Portfolio Diverse tenant base: Largest tenant represents only 3.3% of annualized base rent 5 mile demographics: Population 120,000; Average HHI $83,000 562,000 square feet of leasing production during 1H 2010 325,000 square feet of new and renewal leases in various stages of negotiation Increased Leasing Productivity On pace for approximately 1 million square feet in 2010 - highest level in company history 21 new and renewal anchor leases for 770,000 square feet completed since Q1 2009 No remaining 2010 debt maturities $170 million of property refinancings and extensions since early 2009 Proven Debt Management Of the 2011 maturities, only 2 are CMBS loans totaling $20 million 82% of maturities through 2012 held by relationship lenders Two in-process developments – Eddy Street Commons & Cobblestone Plaza - Percent leased increased 6.6% quarter over quarter to 81% leased NOI Upside - Currently only 43% occupied Additional $3.5 million of annualized rent from executed anchor tenant leases at operating and redevelopment properties anticipated to commence over the next 12-18 months 1
  • 3. GROWTH SOURCES Rent commencement on executed Jr anchor leases $3.5 million in annualized rent anticipated to commence over the next 12-18 months Jr anchor leases in negotiation Increase small shop occupancy From current 76% to historical 80-85% Execute on redevelopments Leasing nearly complete at 3 of 5 redevelopments Complete current developments 81% leased but only 43% occupied Future development potential 2
  • 4. IMPROVING FFO QUALITY We have been successful in improving the quality and predictability of our FFO stream. Real Estate Rental Operations as a Percent of FFO 100% 90% 82% 80% 59% 60% 40% 20% 2008 Actual 2009 Actual 2010 Projection (1) (1) 2010 projection is based on the Company’s previously released earnings guidance. 3
  • 5. LEASING PRODUCTION Improved leasing production has become a company-wide focus We are on pace to achieve approximately 1 million square feet of production for 2010, the highest level in company history 21 new and renewal anchor leases for 770,000 square feet completed over the last 5 quarters Total Leasing Production – New and Renewal Leases 400,000 345,600 350,000 325,000 300,300 300,000 250,000 216,200 203,000 200,000 150,000 130,200 100,000 39,100 50,000 0 (1) Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 In Negotiation (1) Currently negotiating 325,000 square feet of new and renewal leases as stated in the Company’s Q2 2010 earnings press release. 4
  • 6. DIVERSE TENANT BASE Information as of June 30, 2010 (unless otherwise noted) Largest single retail tenant comprises only 3.3% of total annualized base rent Top 10 retail tenants account for only 22.7% of total annualized base rent Top 10 Retail Tenants Number % of % of Portfolio Of Owned Annualized S&P Tenant Locations GLA Base Rent (1) Credit Rating (2) 1 Publix 6 5.4% 3.3% n/a 2 PetSmart 6 2.7% 2.9% BB 3 Lowe's Home Improvement 2 2.4% 2.5% A 4 Ross Stores 5 2.7% 2.4% BBB 5 Dick's Sporting Goods 3 3.2% 2.3% n/a 6 Marsh Supermarkets 2 2.3% 2.3% n/a 7 Bed Bath & Beyond 5 2.5% 2.2% BBB 8 Staples 4 1.7% 1.7% BBB 9 HEB Grocery 1 1.9% 1.6% n/a 10 Office Depot 5 2.4% 1.5% B Total 27.2% 22.7% (1) Annualized base rent represents the monthly contractual rent for June 2010 for each applicable tenant multiplied by 12. (2) S&P credit ratings for parent company as of 8/16/10. 5
  • 7. DIVERSE TENANT BASE Information as of June 30, 2010 Peer Group Assessment: Top Tenant as a Percent of Annualized Base Rent 18.0% 16.7% 16.0% 14.0% 12.0% 11.1% 10.0% 8.0% 6.7% 7.2% 6.0% 4.5% 4.6% 3.9% 4.0% 3.2% 3.3% 2.2% 2.7% 2.0% 0.0% WRI FRT KIM KRG RPT DDR REG AKR IRC EQY CDR Bed Bath Home Wal-Mart/ Giant Kroger Publix TJ Maxx Kroger A&P Supervalu Publix Beyond Depot Sam’s Foods Source: Company SEC filings. 6
  • 8. STRONG DEMOGRAPHICS High quality assets with an average age of only eight years Approximately half of the current portfolio was developed by KRG Portfolio benefits from 100% non-owned anchor occupancy Strong household incomes surrounding operating portfolio and development pipelines Portfolio Demographics Comparison Operating Portfolio vs. Development Pipelines Radius Radius Operating Portfolio 3 Mile 5 Mile Development Pipeline 3 Mile 5 Mile 2009 Est. Population 49,501 121,571 2009 Est. Population 60,042 155,798 2014 Est. Population 55,139 134,542 2014 Est. Population 64,828 168,552 Projected Annual Growth 2.3% 2.1% Projected Annual Growth 1.6% 1.6% Average HH Income $84,402 $83,469 Average HH Income $87,331 $87,676 Source: Applied Geographic Solutions. 7
  • 9. STRONG DEMOGRAPHICS We have a history of selecting strong submarkets for investment Our Florida, Texas and Indiana portfolio incomes are significantly higher than statewide levels Average Household Income $100,000 $87,722 $83,985 $77,504 $80,000 $66,469 $66,397 $61,132 $60,000 $40,000 Florida Texas Indiana Statewide Average KRG Portfolio - 5 Mile Radius Average Source: Applied Geographic Solutions. 8
  • 10. WELL-STAGGERED LEASE EXPIRATIONS Information as of June 30, 2010 Average 8.6% of total annualized rent is expected to roll each year from 2011 through 2019 Higher 2012-2015 rollover defers renewal negotiations to a potentially stronger leasing environment Percentage of Lease Expiration by Total Annualized Base Rent (1) 19.8% 20.0% 18.0% 16.0% 13.8% 14.0% 12.0% 10.8% 10.1% 10.0% 8.9% 9.1% 8.2% 8.0% 6.5% 5.8% 6.0% 4.3% 4.0% 2.7% 2.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Thereafter (1) Lease expirations of operating portfolio and excludes option periods and ground leases. Annualized base rent represents the monthly contractual rent for June 2010 for each applicable property multiplied by 12. 9
  • 11. DEVELOPMENT STATUS Information as of June 30, 2010 In-Process Developments Eddy Street Commons at Notre Dame 85% pre-leased or committed 97% of projected costs incurred Cobblestone Plaza, Ft. Lauderdale, FL 77% pre-leased or committed with Whole Foods executed lease 90% of projected costs incurred Capital Summary (Dollars in thousands) Eddy Street Estimated Project Costs: $35,000 Cobblestone Plaza Estimated Project Costs: $52,000 Total Cost Incurred as of 6/30/10: ($80,794) Remaining Cost to be Spent: $6,206 10
  • 12. MANAGING LEVERAGE Scheduled Debt Maturities (1)(2)(3) Extended or refinanced all 2010 debt maturities by February 2010 2011 maturities are in process: Only 2 CMBS loans totaling $20 million 5 of 7 property loans held on balance sheet were underwritten with more stringent 2008-09 standards Approximately 83% of debt maturities through 2012 are held on balance sheet by relationship banks including unsecured term loan $200,000 $175,000 $150,000 $55,000 $125,000 $93,800 $100,000 $29,082 $170,264 $75,000 $13,549 $44,509 $0 $50,000 $3,482 $68,243 $65,296 $25,000 $42,839 $0 $31,459 $38,302 $0 2010 2011 2012 2013 2014 2015 Thereafter Mortgage Debt KRG Share of Unconsol. Mortgage Debt Construction Loans Revolving Credit Facility Term Loan (1) Dollars in thousands.. (2) Maturities exclude annual principal amortization. (3) Amount due in 2012 includes the outstanding balance on our unsecured revolving credit facility, and assumes exercise of available extension option. 11
  • 13. PEER GROUP ANALYSIS Debt Plus Preferred as a Percent of Gross Assets (1)(2) 2010 Estimated AFFO Payout Ratio (2)(3) 65.0% 100.0% 55.7% 90.0% 54.8% 82.0% 55.0% 80.0% 70.6% 45.0% 70.0% 60.0% 35.0% 50.0% 25.0% 40.0% Peer Average KRG Peer Average KRG (1) Source: Company filings. Calculation: (Consolidated Debt + Preferreds) / Gross Real Estate Assets (2) Peer Group: AKR, CDR, DDR, EQY, FRT, IRC, KIM, REG, RPT, WRI (3) Source: SNL Financial. Based on most recently announced quarterly dividend annualized 12
  • 14. DISCLAIMER This presentation contains certain statements that are not historical fact and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including, without limitation: national and local economic, business, real estate and other market conditions, particularly in light of the current challenging economic conditions; 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, its indebtedness; the level and volatility of interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant bankruptcies; the competitive environment in which the Company operates; acquisition, disposition, development and joint venture risks; property ownership and management risks; the Company’s ability to maintain its status as a real estate investment trust (“REIT”) for federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; risks related to the geographical concentration of our properties in Indiana, Florida and Texas; assumptions underlying our anticipated growth sources; and other factors affecting the real estate industry generally. The Company refers you the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled “Business Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, which discuss these and other factors that could adversely affect the Company’s results. The Company undertakes no obligation to publicly update or revise these forward-looking statements (including the FFO and net income estimates), whether as a result of new information, future events or otherwise. 13