Kite realty centennial6/30/2023 Turning to redevelopment broadly, our 3-R initiatives include a total of 23 assets, which represent all regions of our portfolio and vary in terms of scope and scale of each redevelopment. Looking ahead to the next few quarters, we anticipate the impact of the 3-R initiative on our same store growth to fluctuate as we ramp up construction on several repositioning opportunities such as Tarpon Bay in Naples, Hitchcock in Aiken, Centennial Gateway in Las Vegas, and Shops at Moore at Oklahoma City. The 15 3-R assets that remain in our same store pool had a neutral to slightly positive impact to our same store growth as certain merchandising events that occurred last year, such as the replacement of Conn’s Electronics with TJ Maxx at Portofino, outweighed the negative offset of recapturing space. The 3.4% same store NOI growth excludes the eight redevelopment properties that have either started or are nearing construction, as outlined in our supplemental. The biggest contributor to cost savings came from our expense management initiatives like direct billing for tenant trash removal and lower insurance premiums. Sixty percent of this growth came from rent and occupancy increases while the remaining 40% was attributable to expense management. This quarter, same store NOI grew another 3.4% excluding redevelopments. Moving on to operational excellence and execution, we continue to report consistently strong same store results, with this quarter marking the 14 th consecutive quarter of same store NOI growth in excess of 3% for an average of 4.3% increases, which is about 100 basis points above our peer average. As a result of our regional platform and our commitment to our clients, our retention ratio on desired renewals was over 90% in the first quarter. Our tenant relationships remained strong throughout the quarter as our asset management and leasing teams conducted nearly 1,200 tenant interactions on an average tenant base of approximately 2,000. This quarter was no exception as we improved our NOI margin and our recovery ratio from the prior period while keeping a modest G&A platform. We continue to benefit from industry-leading operating efficiency metrics which we define as a combined look at NOI margin and G&A to revenues. To start, our lean corporate culture and intense passion showed no signs of slowing in the first quarter. As a reminder, core includes our unique company culture, our expectation and deliverance of operational excellence, our diligent path to achieve and maintain a resilient and flexible balance sheet, and lastly executing on these objectives and strategic initiatives that grow shareholder value over the long term. The details of our results can be found in the press release and the supplemental, as I plan to use this call to highlight key milestones and update our investors on our three-year core road map. We started out 2016 accomplishing results above our internal estimates for the quarter. Now I’d like to turn the call over to John. On the call with me today from the company are Chief Executive Officer, John Kite Chief Operating Officer, Tom McGowan, and our Chief Financial Officer, Dan Sink. Please refer to yesterday’s earnings press release available on our website for a reconciliation of these non-GAAP performance measures to our GAAP financial results. Today’s remarks may also include certain non-GAAP financial measures. For more information about the factors that can adversely affect the company’s results, please see our SEC filings including our most recent 10-K. Actual results may differ materially from these statements. Some of today’s comments may contain forward-looking statements that are based on assumptions and are subject to inherent risks and uncertainties. Welcome to Kite Realty Group’s first quarter 2016 earnings call. I would now like to turn the conference over to Maggie Daniels, Director of Investor Relations and Strategy. As a reminder, this conference call is being recorded. If anyone should require operator assistance, please press star then zero on your touchtone telephone. Later, we will conduct a question and answer session and instructions will follow at that time. At this time, all participants are in a listen-only mode. Good day ladies and gentlemen and welcome to the Kite Realty Group Trust Q1 2016 Earnings conference call. Maggie Daniels - Director, Investor Relations and Strategy Thomas McGowan - President, Chief Operating Officerĭaniel Sink - Executive Vice President, Chief Financial Officer John Kite - Chairman, Chief Executive Officer Kite Realty Group Trust ( NYSE: KRG) Q1 2016 Earnings Conference Call Ap9:00 AM ET
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