凯特地产信托 2025年度报告

Legacy WestPlano, TX A landmarkacquisition in 2025 To our Fellow Shareholders, FIVE AREAS OF FOCUS We entered 2025 with a clear set of priorities anddelivered against them with urgency and discipline.Wedid not sit back and simply talk about thedisconnectbetween public and private marketvalues – we took advantage of it. Mark-to-Market Opportunities Demandfor high-quality open-air retail space remainedstrong throughout 2025, and we capitalized on it. We leasedapproximately 4.6 million square feet at 13.8% comparableblended cash spreads. The spread on non-option renewalsduring 2025 remained elevated at 16.9%, which we believeis the clearest measure of our mark-to-market opportunitybecause those deals typically involve little to no materiallandlordconcessions.We also expanded our leased-to-occupied spread to 340 basis points, representing $37 millionof signed-not-open NOI that should continue to support near-term occupancy gains. We sold over $620.0 million of non-core assets at yields wellinside our Core FFO yield on the $300.0 million of commonshares we repurchased through January 2026 – 13.0 millionshares at an average price of $23.00 per share. That spreadmattered. It created a compelling arbitrage opportunity, andwe acted on it in a way that improved long-term value pershare. At the same time, we formed two joint ventures with aleading global investment firm totaling nearly $1.0 billion ofgross asset value, acquiring Legacy West, a portfolio-definingmixed-use asset that meaningfully elevates the quality of ourplatform, and continued to advance the mixed-use expansionat One Loudoun. Just as importantly, we accomplished all ofthis while keeping leverage below our target range of low- tomid-5x net debt to EBITDA. Higher Portfolio Cruising Speed Our portfolio’s internal growth profile continued to improve.We pushed for better lease economics, with 83% of our newand non-option renewal leases for both anchor and smallshop spaces including fixed rent bumps of at least 3% and96% including fixed CAM. At the same time, our asset salesreduced our exposure to larger-format, lower-growth centersand increased our concentration in neighborhood grocery,lifestyle,and mixed-use assets.Together,those actionsincreased our portfolio’s embedded annual rent growth to180 basis points, a nearly 25-basis-point improvement in justtwo years. That is exactly what we said we would do. At the conclusion of last year’s letter, I outlined five areasof focus for 2025. Our capital allocation decisions were notseparate from those priorities – they were a clear expressionof them. Every major action we took during the year wasdesignedto improve portfolio quality,accelerate internalgrowth, strengthen earnings durability, and increase long-term value per share. Balance Sheet Discipline None of this would have been possible without balancesheet strength. Our ability to sell assets, repurchase stock, formjoint ventures,and acquire alandmark asset in an accretive mannerwhile maintaining our target leveragedemonstratesthe strategic value offinancial flexibility. We have said foryears that a strong balance sheet is anadvantage. In 2025, we proved it. venture with the same partner at nearlyidentical yields, further advancing ourportfoliotransition while preservingbalancesheet flexibility.We alsocontinued to advance the expansionat One Loudoun in Loudoun County,Virginia, where we are adding 86,000square feet of retail, 33,000 square feetof highly amenitized office, 169 hotelrooms,and 429 luxury multifamilyunits;as of mid-February,the retailcomponent was 65% leased. 7.4% YoY Dividend Increase 79% Activating External Growth Levers Retail Wtd. ABR from Assetswith a Grocery Component* Our most important external growthlever in 2025 was our two partnershipswith a leading global investment firm.Acrosstwo joint ventures totalingnearly$1.0 billion of gross assetvalue, we unlocked capital, enhancedreturns,and increased flexibility.Inone of those transactions, we acquiredLegacy West, one of the premier open-airmixed-use assets in the countryand an entry point into a new tier ofluxury tenant relationships, includingLVMHandKering.Wepartiallyfunded our equity in that investmentbycontributing larger-format,lower-growthassets into a second joint 96% Investor Engagement Conversion to Fixed CAM(% of new and non-option renewallease count) We also remained committed to beingdirectwith our shareholders.Ourshareholders deserve clarity – on value,on strategy, on capital allocation, andon results. At Kite, we are the productof our people, our portfolio, and ourplatform.It is our job to ensure allofour constituents fully appreciateour competitive advantages and theintensitywith which we pursue ourstrategic objectives. $844.4M2025 Total Revenue *Assets with a grocery component includecenters with a big box wine and spirits store. Finally – we will continue to elevate theportfolio. We will seek opportunities torecycle capital with the same discipline