Financial Analysis: Kite Realty Group Trust (KRG) & Its Rivals

Kite Realty Group Trust (NYSE:KRG) is one of 85 publicly-traded companies in the “Retail REITs” industry, but how does it contrast to its peers? We will compare Kite Realty Group Trust to related businesses based on the strength of its dividends, risk, profitability, analyst recommendations, earnings, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current ratings and price targets for Kite Realty Group Trust and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kite Realty Group Trust	1	9	2	0	2.08
Kite Realty Group Trust Competitors	962	3970	3445	137	2.32

Kite Realty Group Trust currently has a consensus target price of $27.78, indicating a potential upside of 6.40%. As a group, “Retail REITs” companies have a potential upside of 8.48%. Given Kite Realty Group Trust’s peers stronger consensus rating and higher possible upside, analysts clearly believe Kite Realty Group Trust has less favorable growth aspects than its peers.

Risk and Volatility

Kite Realty Group Trust has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Kite Realty Group Trust’s peers have a beta of 0.88, meaning that their average stock price is 12% less volatile than the S&P 500.

Earnings and Valuation

This table compares Kite Realty Group Trust and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kite Realty Group Trust	$844.36 million	$298.66 million	16.11
Kite Realty Group Trust Competitors	$840.36 million	$253.68 million	26.93

Kite Realty Group Trust has higher revenue and earnings than its peers. Kite Realty Group Trust is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.16 per share and has a dividend yield of 4.4%. Kite Realty Group Trust pays out 71.6% of its earnings in the form of a dividend. As a group, “Retail REITs” companies pay a dividend yield of 229.1% and pay out -4.4% of their earnings in the form of a dividend. Kite Realty Group Trust has increased its dividend for 4 consecutive years. Kite Realty Group Trust lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Kite Realty Group Trust and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kite Realty Group Trust	42.95%	11.78%	5.38%
Kite Realty Group Trust Competitors	30.43%	6.03%	3.24%

Institutional and Insider Ownership

90.8% of Kite Realty Group Trust shares are held by institutional investors. Comparatively, 59.3% of shares of all “Retail REITs” companies are held by institutional investors. 2.7% of Kite Realty Group Trust shares are held by insiders. Comparatively, 11.4% of shares of all “Retail REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Kite Realty Group Trust peers beat Kite Realty Group Trust on 8 of the 15 factors compared.

Kite Realty Group Trust Company Profile

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.