Raymond James Downgrades Kite Realty Group (KRG) to Market Perform

Raymond James analyst RJ Milligan downgraded Kite Realty Group (NYSE: KRG) from Strong Buy to Market Perform.

The analyst comments: "We are downgrading KRG to Market Perform. Despite record levels of leasing across the sector over the past several years (KRG included), virtually no new supply, and relatively low levels of bad debt, KRG is expected to deliver just 3% cumulative FFO growth from 2023-2026. The biggest headwind for earnings growth has been outsized exposure to bankrupt tenants (Bed Bath & Beyond, Big Lots, Jo-Ann, Party City, etc.). In an effort to reduce tenant concentration risk going forward/reduce exposure to watchlist tenants, KRG expects to sell $500M worth of assets over the next few months (a larger volume than we were expecting). The company is planning to reduce the portfolio exposure to larger-format centers/power centers, which should help mitigate risk going forward and improve the longer-term growth profile of the portfolio."

For an analyst ratings summary and ratings history on Kite Realty Group click here. For more ratings news on Kite Realty Group click here.

Shares of Kite Realty Group closed at $22.30 yesterday.

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