CluenexKite Realty Group KRG
Kite Realty Group scores weak on business quality (4.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Kite Realty Group does
Kite Realty Group Trust owns and operates open-air shopping centers and mixed-use retail properties, collecting rent from national and local tenants. The business monetizes grocery-anchored real estate heavily clustered in fast-growing Sun Belt markets. Management is leaning into selective property densification and maintaining dividend payouts to attract income-focused investors.
- What it does best
Kite generates an elite fcf margin of 87%, ranking in the top decile of its sector. This cash conversion strength stems from low ongoing capital intensity compared to enclosed mall operators, leaving ample room to cover the $267M dividend paid.
- The main risk
Tight interest coverage of 1.47x leaves the balance sheet vulnerable to floating debt costs or refinancing hurdles given $3.0B of total debt. With net debt at $3.0B, any squeeze in property operating cash flow directly threatens debt service capacity.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins hold at 23.6%, supported by an ROE of 11.3%. Profitability is stable but constrained by high interest burdens, meaning the business does not effortlessly scale earnings as revenue inches higher.
The portfolio relies on grocery-anchored footprints that secure high consumer foot traffic. Its gross margin of 73% sits above peers like BRX at 75% but below others, securing a middle-of-the-pack moat that prevents rapid tenant churn.
Revenue growth crawls at 0.8%, sitting in the bottom quartile at the 23rd percentile of its sector. This top-line expansion rate is fading compared to historical periods when historical annual revenue sat higher.
Total debt of $3.0B towers over $37M in cash, keeping leverage high with a debt-to-equity ratio of 0.98. Free cash flow sits at $260M, showing softness compared to prior years. The balance sheet remains soft and constrained.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on KRG
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Kite Realty Group scores weak on the Cluenex quality check (4.2 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 30, 2026.
See KRG today
- Today's verdict on KRG, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Kite Realty Group (KRG)”, https://cluenex.com/stocks/krg/, data as of Oct 10, 2026.