Kite Realty Group Trust (NYSE: KRG) (the "Company") announced today that it has priced, in an underwritten public offering, 1,200,000 additional shares of its 8.250% Series A Cumulative Redeemable Perpetual Preferred Shares ("Series A Preferred Shares") at a public offering price of $25.1203 per share. The underwriters have been granted a 30-day option to purchase up to an additional 180,000 Series A Preferred Shares. The Company estimates that the net proceeds from this offering, after deducting the underwriting discount and estimated offering expenses payable by the Company, will be approximately $29.0 million, or approximately $33.4 million if the underwriters' option to purchase additional shares is exercised in full. The offering is a reopening of the Company's original issuance of Series A Preferred Shares, which closed on December 7, 2010.
The Company intends to use the net proceeds from this offering to repay outstanding indebtedness under its revolving credit facility and for other general corporate purposes, including, without limitation, the acquisition of properties, as well as development and redevelopment costs.
The offering, which is subject to customary closing conditions, is expected to close on March 12, 2012.
Wells Fargo Securities, LLC is acting as the sole book-running manager for the offering. Raymond James & Associates, Inc. is acting as lead manager for the offering. Barclays Capital Inc. and KeyBanc Capital Markets Inc. are acting as co-managers for the offering. Janney Montgomery Scott LLC and City Securities Corporation are acting as junior co-managers for the offering.
A shelf registration statement with respect to this offering was previously filed with the Securities and Exchange Commission and declared effective on January 11, 2012. A preliminary prospectus supplement relating to this offering has been filed with the Securities and Exchange Commission.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering is being made solely by means of a prospectus supplement and related accompanying prospectus. A copy of the final prospectus supplement and accompanying prospectus relating to this offering will be filed with the Securities and Exchange Commission's and can be obtained, when available, by contacting Wells Fargo Securities, LLC, Attn: Syndicate Operations, 1525 West W.T. Harris Blvd., Charlotte, North Carolina 28262, by calling 800-326-5897 or by e-mail at cmclientsupport@wellsfargo.com.
About Kite Realty Group Trust
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust engaged in the ownership, operation, management, leasing, acquisition, construction management, redevelopment and development of neighborhood and community shopping centers in selected markets in the United States. At December 31, 2011, the Company owned interests in a portfolio of 58 operating properties and five in-process development and redevelopment properties totaling approximately 9.8 million square feet.
Safe Harbor
This press release 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 recent slowing of growth in the U.S. economy; 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; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, 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.
Contacts:
Kite Realty Group Trust
Dan Sink, 317-577-5609
Chief Financial
Officer
dsink@kiterealty.com
or
Investors/Media:
David
Buell, 317-713-5647
Manager, Financial Reporting
dbuell@kiterealty.com
