Kite Realty Group: 2Q FFO $0.01 ahead; Lots of capital recycling activity in the quarter

Research evidence excerpt

Kite Realty Group: 2Q FFO $0.01 ahead; Lots of capital recycling activity in the quarter

J P M O R G A N North America Equity Research

30 July 2026

Kite Realty Group Neutral

KRG, KRG US

2Q FFO $0.01 ahead; Lots of capital recycling activity in Price (29 Jul 26):$28.85

the quarter

REITs

Before Thursday’s open, KRG reported 2Q operating results and updated the FY Michael W. Mueller, CFA AC

outlook. As we walk through it below, the 2Q FFO/share print came in $0.01 ahead, (1-212) 622-6689

and while it raised the SS NOI growth outlook for the year by 50 bps, it left the FY michael.w.mueller@jpmorgan.com

FFO/share range unchanged. Operationally, the quarter looked strong. There were Anthony Paolone, CFA

sequential leased/occupied gains and blended cash lease spreads were in the mid- (1-212) 622-6682

teens. On the investment front, the quarter looked well-rounded. It made a lot of anthony.paolone@jpmorgan.com

progress on non-core dispositions with $300+ million of sales, acquired two Nahom Tesfazghi

centers for ~$135 million, started a P2 resi project at One Loudon, and bought back (1-212) 622 4884

nahom.tesfazghi@jpmchase.com

stock. We expect today’s call to be focused on the higher SS / maintained guide

Daniella De Armas Rosales

dynamic, the new Loudon project, and capital recycling in general. (1-212) 622-0050

daniella.dearmasrosales@jpmchase.com

2Q FFO $0.01 ahead. KRG reported 2Q26 NAREIT FFO of $0.53, which was J.P. Morgan Securities LLC

$0.01 ahead of our comparable estimate and Bloomberg consensus. Relative to our

model, NOI was relatively in line, and the upside looked like it came from a handful

of smaller items plus an unanticipated outparcel gain that was less than $0.01.

Turning to guidance, management affirmed its 2026 NAREIT FFO range of $2.06–