Kite now has five operating centers in Naples and two under construction. The company is currently focusing on the Southeast, and Florida assets now account for 22% of total annualized base rents, Kite said.

Other acquisitions during the quarter included Kedron Village, a community shopping center in an Atlanta suburb that is under construction and 82% preleased, and a 60% interest in a JV that acquired 14 acres in suburban Tampa, FL. This property is expected to include 74,500 sf of space, plus three outparcels. Construction will begin in third quarter.

In July the retail REIT also acquired 100 acres in Cary, NC for $35.6 million. The land is adjacent to Research Triangle Park and zoned as part of the Alston Regional Activity Center to support up to 705,000 sf of retail along with office and residential or hotel development. Prior to construction, Kite plans to contribute this asset into a joint venture in which it will retain a minority interest.

Funds from operations for second quarter reached $10.3 million, up 27.8% from the same quarter a year ago. Total revenues rose to $30.9 million, up 38.8% compared with $22.3 million for the same quarter of 2005. Net income, however, dropped to $1.54 million, down 12% from $1.75 million in the parallel 2005 quarter.

As of June 30 this year, Kite owned interests in 43 retail properties with an aggregate of approximately 7.3 million sf. At that time the retail portfolio was 93% leased, down from 93.8% on June 30, 2005.

The decline is attributed primarily to the lease termination with Winn-Dixie at Shops at Eagle Creek in Naples. Kite paid nearly $1.6 million to acquire the lease in a bankruptcy auction. Discussions are under way "with several potential replacement tenants" for the 51,703-sf space, Kite said.

At the close of trading on Aug. 8, shares of KRG were $15.09 a share on the NYSE, down 1.2% for the day. The 52-week high of $16.52 a share occurred on Sept 16, 2005, and the 52-week low of $14.04 a share occurred on Nov 16, 2005.