KITE REALTY GROUP TRUSTKRG

KITE REALTY GROUP TRUST Segments Disclosure

10-KFiled Feb 17, 20263 min read
SEGMENT REPORTING
An operating segment is a component of a public entity that engages in business activities from which it may earn revenues and incur expenses and has discrete financial information available that is regularly reviewed by the chief operating decision maker (the “CODM”).
The Company’s primary business is the ownership and operation of high-quality, open-air shopping centers and mixed-use assets that are primarily grocery-anchored and located in high-growth Sun Belt markets and select strategic gateway markets in the United States. We derive our revenue primarily from the collection of contractual rents and reimbursement payments from tenants under existing lease agreements at each of our properties. The Company’s CODM, which is its Chief Executive Officer, regularly reviews operating and financial information for each property on an individual basis; therefore, each property represents an individual operating segment. The CODM does not distinguish or group our operations on a geographical or any
other basis for purposes of measuring performance and allocating capital. Across our properties, the financial performance, revenue generating activities, and customer base is determined to be economically similar; therefore, all operating segments have been aggregated into one reportable segment.
The CODM measures and evaluates the financial performance of our portfolio of properties and decides how resources are allocated based on net operating income. The CODM uses net operating income to evaluate income generated from each property in deciding whether to reinvest profits for recurring capital expenditures or into other parts of the business, such as for acquisitions, developments, scheduled interest and principal payments on our indebtedness, or to pay dividends. Net operating income is also used to monitor budget versus actual results in assessing the performance of our properties. The CODM does not regularly review total assets for our single reportable segment as total assets are not used to assess performance or allocate resources.
The following table presents information on the Company’s reported segment revenue, net operating income, and significant segment expenses that are provided to the CODM and included within the Company’s single reportable operating segment measure of profit or loss:
Year Ended December 31,
202520242023
Revenue:
Minimum rent$655,575 $650,331 $642,255 
Tenant reimbursements177,015 174,510 163,877 
Bad debt reserve(7,838)(5,356)(3,459)
Other property-related revenue7,192 4,424 4,754 
Overage rent6,019 7,063 7,473 
Total revenue837,963 830,972 814,900 
Expenses:
Property operating – recoverable99,372 96,894 90,180 
Property operating – non-recoverable15,291 15,455 16,348 
Real estate taxes103,819 103,301 101,780 
Total expenses218,482 215,650 208,308 
Net operating income619,481 615,322 606,592 
Other (expense) income:
Net gains from outlot sales6,096 4,363 1,662 
Other general and administrative expenses(55,459)(52,558)(56,142)
Fee income4,240 4,663 4,366 
Impairment charges(51,849)(66,201)(477)
Depreciation and amortization(373,287)(393,335)(426,361)
Interest expense(132,577)(125,691)(105,349)
Equity in (loss) earnings of unconsolidated subsidiaries(11,650)(1,158)33 
Gain on sale of unconsolidated property, net— 2,325 — 
Income tax expense of taxable REIT subsidiaries(467)(139)(533)
Loss on extinguishment of debt— (180)— 
Other income, net9,038 17,869 1,991 
Gain (loss) on sales of operating properties, net291,962 (864)22,601 
Net income305,528 4,416 48,383 
Net income attributable to noncontrolling interests(6,865)(345)(885)
Net income attributable to common shareholders$298,663 $4,071 $47,498 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 12, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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