Kite Realty Group Completes $136 Million in Acquisitions, $255 Million in Dispositions in Capital Recycling Push
INDIANAPOLIS, June 16, 2026 — Kite Realty Group (NYSE: KRG) announced the completion of a capital recycling program that included the acquisition of two open-air shopping centers for a combined $136 million and the sale of six non-core retail properties for gross proceeds of approximately $255 million.
The Indianapolis-based real estate investment trust executed the acquisitions through 1031 exchanges and simultaneously repurchased additional shares of its common stock as part of the same capital allocation effort.
Two Open-Air Centers Acquired for $136 Million
Kite Realty Group acquired two neighborhood shopping centers totaling 173,620 square feet — or 273,684 square feet when including ground lease square footage — for a combined purchase price of $136 million.
The first acquisition, Chastain Market, is a Trader Joe's-anchored neighborhood center located in Sandy Springs, Georgia, within the Atlanta metropolitan statistical area. Kite Realty Group acquired the property for approximately $71 million. The center is situated in a submarket with an average household income of $235,000 within a three-mile radius, according to the company.
The second acquisition, Founders Square, is an unanchored neighborhood center in Naples, Florida, featuring dining and high-frequency service tenants. Kite Realty Group acquired the property for approximately $65 million. The center is located within a 55-acre mixed-use development and serves a trade area with an average household income of $166,000 within three miles. The company noted expected population growth of 12% in the area by 2030.
The two acquired assets carry average embedded rent escalators of 2.29%, the company said.
Six Non-Core Assets Sold for $255 Million
Kite Realty Group sold a six-property portfolio representing approximately 1.1 million square feet of gross leasable area for gross proceeds of approximately $255 million. The buyers were not disclosed. The disposed properties span multiple markets:
- Commons at Temecula — Riverside, CA (292,078 sq. ft.)
- Gateway Station — College Station, TX (125,406 sq. ft.)
- Grapevine Crossing — Dallas/Ft. Worth, TX (125,488 sq. ft.)
- La Plaza Del Norte — San Antonio, TX (320,102 sq. ft.)
- Perimeter Woods — Charlotte, NC (127,067 sq. ft.)
- Winchester Commons — Memphis, TN (93,077 sq. ft.)
The company said the six disposed assets had embedded rent escalators meaningfully below Kite Realty Group's portfolio average of 1.83%. The transactions also reduced the company's exposure to watchlist tenants. Since December 31, 2024, Kite Realty Group said it has reduced exposure to still-operating watchlist tenants by 57 total spaces, representing more than 1 million square feet and approximately 190 basis points of weighted annualized base rent.
Share Repurchases
Subsequent to the first quarter of 2026, Kite Realty Group repurchased an additional 1.7 million common shares for approximately $45.7 million at an average price of $26.62 per share. Since the inception of its repurchase program, the company has now bought back 18.6 million shares for approximately $445.7 million at an average price of $23.94 per share.
"Our recent activity underscores the strength and flexibility of the KRG platform," said John Kite, Chairman and Chief Executive Officer. "We acquired two high-growth neighborhood centers, sold six lower-growth non-core assets, and repurchased stock — all with the same objective: to allocate capital toward opportunities that enhance the growth rate, quality, and durability of our cash flows. As we navigate the balance of the year, we will continue to be disciplined, focused, and highly intentional in positioning KRG for long-term value creation."
Outlook and Next Steps
Kite Realty Group said it intends to provide additional detail on the use of the sale proceeds and its remaining 2026 capital allocation activity during the company's next earnings call. As of March 31, 2026, the company owned interests in 169 U.S. open-air shopping centers and mixed-use assets comprising approximately 27.3 million square feet of gross leasable area.