"In today's market environment, development continues to be our primary driver of growth and represents our best alternative for high-yielding investments," John Kite, president and chief executive officer, told investors during Friday's earnings call.
The company's Q2 initiatives consist of: Gateway Shopping Center in Marysville, WA, a 255,000-sf community shopping center that includes two shadow anchors, Kohl's Department Store and Winco Foods; Sandifur Plaza in Pasco, WA, a 27,400-sf neighborhood shopping center featuring a 14,800-sf build-to-suit Walgreens; and Cornelius Gateway in Cornelius, OR, a 36,100-sf neighborhood shopping center featuring a 14,800 build-to-suit Walgreens.
Following the end of its second quarter ended June, Kite entered into a joint venture with Rossman & Associates, a regional developer, to develop the $17 million Beacon Hill Shopping Center in Crown Point, IN. The first 36 acres of the Beacon Hill project will be a 161,000-sf community shopping center shadow anchored by a 70,000-sf Strack and Van Til grocery store.
Also in July, the company added Zionsville Place, a 37,553 sf mixed-use retail/commercial center in Zionsville, IN to its development pipeline. Featuring a combination of small shops and garden-style offices, Zionsville Place will be developed on a seven-acre parcel acquired by the company in December 2004. The total anticipated project cost is $8 million. The company also acquired the 156,308-sf Plaza Volente, a neighborhood shopping center in Austin, TX for $35.9 million; and the 144,246-sf Indian River Square a community shopping center in Vero Beach, FL for $16.5 million.
For the three months ended June 30, 2005, funds from operations was $8.1 million, or 29 cents per diluted share, for the Kite Portfolio compared to $1.5 million the same period in the prior year. The company boasted a 187% increase in total revenue for the second quarter of 2005 registering at $22.7 million from $7.9 million for the same period in 2004. The company's net income for the second quarter of 2005 was $1.8 million, compared to a loss of $0.4 million the second quarter of 2004.
During the announcement of its second quarter, the company updated its FFO guidance for 2005 to range from $1.16 to $1.23 per diluted share. At the end of Friday's trading day, Kite's share rose 0.52% to $15.45.
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