Kite Realty Group Announces $21.5 Million Development Project In Naple

INDIANAPOLIS, April 1 /PRNewswire-FirstCall/ -- Kite Realty Group Trust announced today that it has acquired a development property, Tarpon Springs Plaza, located in Naples, Florida. The development property was acquired from Alvin Kite, Chairman, John Kite, Chief Executive Officer and President, Paul Kite and Thomas McGowan, Executive Vice President and Chief Operating Officer (collectively the "Principals"). In August 2004, in connection with the Company's initial public offering, the Company was granted an option to purchase this development property from the Principals. The Company elected to accelerate the acquisition of the property prior to stabilization as construction is set to commence in the early summer of 2005. The aggregate purchase price for the Principals' 100% interest in the development property was approximately $7.2 million, which includes the assumption and repayment of indebtedness. A portion of the purchase price, approximately $3.1 million, equaled the Principals' cost in the project with no profit, and was paid through the issuance of 214,049 units of limited partnership interest in the Company's operating partnership, Kite Realty Group, L.P. In addition, Kite Realty Group, L.P. assumed approximately $220,000 in third party accounts payable and repaid approximately $3.9 million in existing indebtedness on the development property. The transaction was approved by the independent members of the Company's Board of Trustees.

John A. Kite, President and Chief Executive Officer, stated, "We are continuing to execute on our core strategy of development. The Tarpon Springs Plaza property is attractively located in the high-growth southwest Florida market. The pre-development risks have been substantially mitigated with the receipt of the final zoning approval and we look forward to commencing construction in early summer."

Tarpon Springs Plaza is a development on a 15-acre site located at the southeast corner of I-75 and Immokalee Road in Naples, Florida. The development will include approximately 70,000 square feet of retail junior box tenants, 25,000 square feet of retail shops and up to four outparcels. The estimated project cost for Tarpon Springs Plaza is $21.5 million and completion of the project is currently targeted for June, 2006.

In addition, Target purchased an 18-acre adjacent parcel from the Principals when the property was originally acquired in November, 2003 and plans to construct a 173,800 square foot Super Target store, which will shadow anchor the Tarpon Springs Plaza property.

About Kite Realty Group Trust

Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust focused primarily on the development, construction, acquisition, ownership and operation of high quality neighborhood and community shopping centers in selected growth markets in the United States. The Company owns interests in a portfolio of operating retail properties, retail properties under development, operating commercial properties, a related parking garage, commercial property under development and parcels of land that may be used for future development of retail or commercial properties. Kite Realty Group owns interests in 37 operating properties totaling 5.3 million square feet and in 10 properties under development representing 1.3 million square feet.

Safe Harbor

Certain statements in this document that are not historical fact may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including without limitation: national and local economic, business, real estate and other market conditions; the ability of tenants to pay rent; the competitive environment in which the Company operates; financing risks; property management risks; the level and volatility of interest rates; the financial stability of tenants; the Company's ability to maintain its status as a REIT for federal income tax purposes; acquisition, disposition, development and joint venture risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, which discuss these and other factors that could adversely affect the Company's results.

Contact Information: Investors/Media: Kite Realty Group Trust Stephanie Carrington / Jason Rando Dan Sink, Chief Financial Officer The Ruth Group (317) 577-5609 (646) 536-7017/7025 dsink@kiterealty.com scarrington@theruthgroup.com jrando@theruthgroup.com