Kite Realty Group Trust

Good day and welcome to the Kite Realty Group Q1 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Brian McCarthy, Senior Vice President of Corporate Marketing and Communications. Please go ahead.

Thank you, and good afternoon, everyone. Welcome to Kite Realty Group's first quarter earnings call. Some of today's comments contain forward-looking statements that are based on assumptions of future events and are subject to inherent risks and uncertainties. Actual results may differ materially from these statements. For more information about the factors that can adversely affect the company's results, please see our SEC filings, including our most recent form 10-K. Today's remarks also include certain non-GAAP financial measures. Please refer to today's earnings press release available on our website for reconciliation of these non-GAAP performance measures to our GAAP financial results. On the call with me today from Kite Realty Group are Chairman and Chief Executive Officer John Kite, President and Chief Operating Officer Tom McGowan, President and Chief Financial Officer Heath Feer, Senior Vice President and Chief Accounting Officer Adam Jaworski, and Senior Vice President Capital Markets and Investor Relations Tyler Henshaw. Given the number of participants on the call, we ask that you limit yourself to one question and one follow-up. If you have additional questions, we ask that you please rejoin the queue. I'll now turn the call over to John.

Thanks, Brian, and good morning, everyone. We entered 2026 with an ambitious set of operational and strategic goals, and through the first quarter, we are firmly on target. Tenant demand remains healthy, Our signed non-open pipeline remains elevated, and the underlying fundamentals of our portfolio have never been stronger. This is a result of deliberate work over the past two years to reshape KRG into a higher caliber, faster growing, and more resilient company. We've sold over $600 million of non-core assets, entered into strategic and transformational joint ventures, repurchased shares at pricing well below consensus NAV, and repositioned the portfolio squarely toward higher growth and higher quality grocery-anchored lifestyle and mixed-use assets. These actions are proactive, decisive, and disciplined, designed to capitalize on the disconnect between public and private market values while fundamentally elevating the company. The KRG you see today is significantly improved from where it was 24 months ago. The first quarter was another clear example of that discipline in action. We repurchased 6 million common shares for approximately $152 million and sold Coram Plaza, a non-core, lower-growth asset. Together with the activity completed in 2025, we have now repurchased 16.9 million shares for $400 million at an average price of $23.67, representing a compelling arbitrage, buying our own stock at an FFO yield meaningfully wider than the yields at which we have sold lower growth assets. As we advance through 2026, we will continue to evaluate capital recycling opportunities that further optimize the the portfolio and support our long-term strategic objectives. None of this is possible without the strength and versatility of our balance sheet. Our ability to sell assets, repurchase stock, enter into strategic joint ventures, fund growth, and continue investing in the portfolio is a direct result of the disciplined financial posture we have maintained over multiple years. We remain committed to operating with conservative leverage ample liquidity, and meaningful financial flexibility, which allows us to stay opportunistic while continuing to protect the long-term durability of the platform. That discipline is translating directly into operating performance. Demand for space in our high-quality centers remains exceptionally healthy, and our first quarter results reflect both the strength of the portfolio and the quality of our execution. Same property NOI increased 3.6% in the first quarter, a strong start to the year. During the quarter, we executed 151 new and renewal leases, representing over 700,000 square feet. Blended cash leasing spreads were 13.5%, including 31.3% on new leases. Our non-option renewal spreads were 12.3%. demonstrating the continued mark-to-market potential embedded within our portfolio. Our lease rate stands at 94.7%, a 90 basis point increase year-over-year, reflecting the continued absorption of our inventory by high-quality, well-capitalized retailers. During the quarter, we signed new leases with a variety of sought-after concepts, including on-running Reformation, Warby Parker, Total Wine, and Barnes & Noble. ABR per square foot reached $22.89 at quarter end, a 6.5% increase year over year. Our sign-not-open pipeline remains elevated at approximately $36 million of NOI, representing a 350 basis point spread between our leased and occupied rates. The average ABR for leases in our signed not open pipeline is $28 a square foot. Embedded rent escalators are the first stone in the foundation of long-term total return, contractual growth that compounds over time. Two years ago, our embedded rent escalators were just 156 basis points. Today, they stand at 182 basis points. As we advance towards our 200 basis point target, that trajectory is driven by factors within our control, strong lease structures, disciplined merchandising, and the deliberate reshaping of our portfolio. Simply put, KRG is in an exceptional position. We have a better portfolio, a rock solid balance sheet, a more durable growth profile, and a team that continues to execute with urgency, discipline, and focus. I want to thank the entire KRG team for the hard work that got us here and for the continued energy, commitment, and conviction required to keep raising the bar. I'll now turn it over to Heath.