7/23/2023 0 Comments Kite realty livingston commons![]() General economic factors that are beyond our control, including, but not limited to, economic recessions, decreases in consumer confidence and consumer spending, decreases in business confidence and business spending, reductions in consumer credit availability, increasing consumer debt levels, rising energy costs, higher tax rates, business layoffs, downsizing and industry slowdowns, and/or rising inflation, could have a negative impact on the business of our retail tenants. There can be no assurance that the recovery will continue. Market conditions remain challenging as lower consumer confidence has persisted. Over the past several years, this structural weakness has resulted in the bankruptcy or weakened financial condition of a number of retailers, decreased consumer spending, increased home foreclosures, low consumer confidence, and reduced demand and rental rates for certain retail space. We currently have sufficient capacity under our unsecured revolving credit facility to retire outstanding debt maturing in 20 in the event we are not able to refinance such debt when it becomes due, but we cannot provide any assurance that we will be able to maintain capacity to retire any or all of our outstanding debt beyond 2018.Ĭertain sectors of the United States economy are experiencing sustained weakness. If we are not successful in refinancing our outstanding debt when it becomes due, we may have to dispose of properties on disadvantageous terms, which might adversely affect our ability to service other debt and to meet our other obligations. Though we have limited debt maturities through December 31, 2020, we have approximately $ As a result, we may be unable to refinance or extend our existing indebtedness or the terms of any refinancing may not be as favorable as the terms of our existing indebtedness. These disruptions could impact the overall amount of equity and debt financing available, lower loan to value ratios, cause a tightening of lender underwriting standards and terms and cause higher interest rate spreads. The laws also may allow third parties to seek recovery from owners or operators for personal injury associated with exposure to asbestos fibers.ĭisruptions in the financial markets generally, or relating to the real estate industry specifically, may adversely affect our ability to obtain debt financing at favorable rates or at all. Environmental laws require that ACBM be properly managed and maintained, and fines and penalties may be imposed on building owners or operators for failure to comply with these requirements. Finally, one of our properties has contained asbestos-containing building materials, or ACBM, and another property may have contained such materials based on the date of its construction. However, these lease provisions may not fully protect us in the event that a tenant becomes insolvent. In general, these tenants have covenanted in their leases with us to use these substances, if any, in compliance with all environmental laws and have agreed to indemnify us for any damages we may suffer as a result of their use of such substances. ![]() In addition, some of our properties have tenants which may use hazardous or toxic substances in the routine course of their businesses. Except for net proceeds from equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for General Partner Units, the Operating Partnership generates the capital required by the business through its operations, its incurrence of indebtedness and the issuance of Limited Partner Units to third parties. The Operating Partnership is structured as a partnership with no publicly-traded equity. These subsidiaries and joint ventures own and operate retail shopping centers and other real estate assets. The Operating Partnership has numerous wholly-owned subsidiaries, and it also owns interests in certain joint ventures. In addition, the Parent Company currently does not nor does it intend to guarantee any debt of the Operating Partnership. The Parent Company issues public equity from time to time but does not have any indebtedness as all debt is incurred by the Operating Partnership. The Parent Company has no material assets or liabilities other than its investment in the Operating Partnership. We believe it is important to understand the few differences between the Parent Company and the Operating Partnership in the context of how we operate as an interrelated consolidated company.
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