INDIANAPOLIS--(BUSINESS WIRE)--Kite Realty Group Trust (NYSE: KRG) (the “Company”) today announced that its board of trustees has approved a reverse share split of the Company’s common shares at a ratio of 1-for-4. The reverse share split is expected to take effect at about 5:00 p.m. Eastern time on August 11, 2014 (the “Effective Time”).
Accordingly, at the Effective Time, every four issued and outstanding common shares will be converted into one common share. In addition, at the market open on August 12, 2014, the common shares will be assigned a new CUSIP number: 49803T 300.
As a result of the reverse share split, the number of outstanding common shares of the Company will be reduced from approximately 332.7 million to approximately 83.2 million. The number of authorized shares and the par value per share will remain unchanged. The Company expects that a corresponding adjustment will be made to its quarterly share dividend. For example, if the Board of Trustees approves a share dividend for the third quarter equal to the dividend paid with respect to the second quarter, the quarterly dividend would be $0.26 per share (reflecting an increase of four times the second quarter dividend of $0.065 per share to account for the reverse share split). The amount of any future dividends payable by the Company will be determined by and are at the discretion of the Company’s Board of Trustees.
No fractional shares will be issued in connection with the reverse share split. Instead, each shareholder holding fractional shares will be entitled to receive, in lieu of such fractional shares, cash in an amount determined on the basis of the average closing price of the Company’s common shares on the New York Stock Exchange for the three consecutive trading days ending on August 11, 2014. The reverse share split will apply to all of the Company’s outstanding common shares and therefore will not affect any shareholder’s relative ownership percentage. Shareholders will be receiving information from Broadridge Corporate Issuer Solutions, Inc., the Company’s transfer agent, regarding their shareholdings following the reverse share split and cash in lieu payments, if applicable.
About Kite Realty
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust engaged in the ownership, operation, management, leasing, acquisition, construction, redevelopment and development of neighborhood and community shopping centers in selected markets in the United States. At July 1, 2014 and after giving effect to the previously announced merger transaction with Inland Diversified Real Estate Trust, Inc., the Company owned interests in a portfolio of 133 operating, development and redevelopment properties totaling approximately 21.6 million owned square feet across 26 states. For more information, please visit the Company’s website at www.kiterealty.com.
Forward Looking Statements
Certain statements in this press release that are not in the present or past tense or that discuss the Company’s expectations (including any use of the words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “might,” “outlook,” “project”, “should” or similar expressions) are forward-looking statements within the meaning of the federal securities laws and as such are based upon current beliefs as to the outcome and timing of future events. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which the Company operates and beliefs of and assumptions made by its management, involve uncertainties that could significantly affect the financial results of the Company. There can be no assurance that actual future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors including, but not limited to, the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets and interest rates; the demand for and market acceptance of the Company’s properties for rental purposes; the ability of the Company to enter into new leases or renewal leases on favorable terms; the amount and growth of the Company’s expenses; tenant financial difficulties and general economic conditions, including interest rates, as well as economic conditions and competition in those areas where the Company owns properties; risks associated with joint venture partners; risks associated with the ownership and development of real property; the outcome of claims and litigation involving or affecting the Company; the ability to satisfy conditions necessary to close pending transactions and the ability to successfully integrate pending transactions; applicable regulatory changes; risks associated with acquisitions, including the integration of the Company’s and Inland Diversified Real Estate Trust, Inc.’s businesses; risks associated with achieving expected revenue synergies or cost savings; and other risks and uncertainties detailed from time to time in the Company’s SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the business, financial condition, liquidity, cash flows and financial results of the Company could differ materially from those expressed in the forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. The Company does not undertake to update forward-looking statements except as may be required by law.