Kite Pipeline Reaches $176M

ORLANDO-Speaking at the Raymond James 27th Annual Institutional Investors Conference here Monday, John A. Kite, president and chief executive officer with Indianapolis-based Kite Realty Group Trust, revealed that his company has placed greater emphasis on development rather than acquisitions. During the past year, Kite has added 10 new projects to its development pipeline for a total of 14.

“The yield seeing in development is so compelling in the development business that we are putting capital in development at a much greater impact than in acquisitions,” Kite told investors. “The yields of high-quality shopping centers have significantly decreased in the last couple of years.”

The current pipeline now stands at $176 million, with project completion dates slated for this year and 2007. While the company’s target markets include Indiana, Florida and Texas, with 80% of the company’s base rents coming from those markets, Kite says a greater priority has been placed on Florida. Recently, the company acquired 55 acres in the sunshine state for future development.