----

----

| (Mark One)                                                                                                                                                               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| x                                                                                                                                                                        | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                                                                                                                                                     |   |
| For the quarterly period ended September 30, 2010                                                                                                                        |
|                                                                                                                                                                     |   |
| OR                                                                                                                                                                       |
|                                                                                                                                                                     |   |
| o                                                                                                                                                                        | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                                                                                                                                                     |   |
| For the transition period from  _____  to  _____                |
|                                                                                                                                                                     |
| Commission File Number: 001-32268                                                                                                                                        |
|                                                                                                                                                                     |
| Kite Realty Group Trust                                                                                                                                                  |
| (Exact Name of Registrant as Specified in its Charter)                                                                                                                   |

| Maryland                                                                           |   | 11-3715772                           |
|------------------------------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization)                     |   | (IRS Employer Identification Number) |
|                                                                               |   |                                 |
| 30 S. Meridian Street, Suite 1100Indianapolis, Indiana                             |   | 46204                                |
| (Address of principal executive offices)                                           |   | (Zip code)                           |
|                                                                               |   |                                 |
| Telephone: (317) 577-5600                                                          |
| (Registrant’s telephone number, including area code)                         |
|                                                                               |
| Not Applicable                                                                     |
| (Former name, former address and former fiscal year, if changed since last report) |

| Yes   x | No   o |
|-------------------|------------------|

| Yes   o | No   o |
|-------------------|------------------|

|   | Large accelerated filer | o      |   | Accelerated filer | x      |                                          | Non-accelerated filer | o      |   | Smaller reporting company | o |   |
|--------|-------------------------|--------|--------|-------------------|--------|-----------------------------------------------|-----------------------|--------|--------|---------------------------|---|--------|
|   |                    |   |   |              |   | (Do not check if a smaller reporting company) |                  |   |   |                      |

| Yes   o | No   x |
|-------------------|------------------|

----

----

KITE REALTY GROUP 

|       |                                                                                        |                                                                                                            | Page   |
|------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|--------|
| Part I.    | FINANCIAL INFORMATION                                                                       |                                                                                                            |
|       |                                                                                        |                                                                                                            |   |
| Item 1.    | Condensed Consolidated Financial Statements (Unaudited)                                     |                                                                                                            |
|       |                                                                                        |                                                                                                            |   |
|       |                                                                                        | Condensed Consolidated Balance Sheets as of September 30, 2010 and December 31, 2009                            | 3      |
|       |                                                                                        |                                                                                                            |   |
|       |                                                                                        | Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2010 and 2009 | 4      |
|       |                                                                                        |                                                                                                            |   |
|       |                                                                                        | Condensed Consolidated Statement of Shareholders' Equity for the Nine Months Ended September 30, 2010           | 5      |
|       |                                                                                        |                                                                                                            |   |
|       |                                                                                        | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2010 and 2009           | 6      |
|       |                                                                                        |                                                                                                            |   |
|       |                                                                                        | Notes to Condensed Consolidated Financial Statements                                                            | 7      |
|       |                                                                                        |                                                                                                            |
|       | Cautionary Note About Forward-Looking Statements                                       | 18                                                                                                              |
|       |                                                                                        |                                                                                                            |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 19                                                                                                              |
|       |                                                                                        |                                                                                                            |   |
| Item 3.    | Quantitative and Qualitative Disclosure about Market Risk                                   | 34                                                                                                              |
|       |                                                                                        |                                                                                                            |   |
| Item 4.    | Controls and Procedures                                                                     | 34                                                                                                              |
|       |                                                                                        |                                                                                                            |   |
| Part II.   | OTHER INFORMATION                                                                           |                                                                                                            |
|       |                                                                                        |                                                                                                            |   |
| Item 1.    | Legal Proceedings                                                                           | 35                                                                                                              |
|       |                                                                                        |                                                                                                            |   |
| Item 1A.   | Risk Factors                                                                                | 35                                                                                                              |
|       |                                                                                        |                                                                                                            |   |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 35                                                                                                              |
|       |                                                                                        |                                                                                                            |   |
| Item 3.    | Defaults upon Senior Securities                                                             | 35                                                                                                              |
|       |                                                                                        |                                                                                                            |   |
| Item 4.    | Removed and Reserved                                                                        | 35                                                                                                              |
|       |                                                                                        |                                                                                                            |   |
| Item 5.    | Other Information                                                                           | 35                                                                                                              |
|       |                                                                                        |                                                                                                            |   |
| Item 6.    | Exhibits                                                                                    | 35                                                                                                              |
|       |                                                                                        |                                                                                                            |   |
| SIGNATURES | 36                                                                                          |

----

Table of Contents

Part I. 

Item

Condensed

|                                                                                                                                                                                                                                                                                                                       |   | September 30, |          |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                       |   | 2010          |          |   | 2009         |   |
| Assets:                                                                                                                                                                                                                                                                                                                    |   |          |          |   |         |   |
| Investment properties, at cost:                                                                                                                                                                                                                                                                                            |   |          |          |   |         |   |
| Land                                                                                                                                                                                                                                                                                                                       |   | $             | 229,078,232   |   |         | $      | 226,506,781 |   |
| Land held for development                                                                                                                                                                                                                                                                                                  |   |          | 27,358,808    |   |         |   | 27,546,315 |   |
| Buildings and improvements                                                                                                                                                                                                                                                                                                 |   |          | 764,638,869   |   |         |   | 736,027,845 |   |
| Furniture, equipment and other                                                                                                                                                                                                                                                                                             |   |          | 5,144,470     |   |         |   | 5,060,233 |   |
| Construction in progress                                                                                                                                                                                                                                                                                                   |   |          | 167,414,630   |   |         |   | 176,689,227 |   |
|                                                                                                                                                                                                                                                                                                                       |   |          | 1,193,635,009 |   |         |   | 1,171,830,401 |   |
|       Less: accumulated depreciation                                                                                                                                                                                                                                                         |   |          | (145,266,371  | )      |         |   | (127,031,144 | ) |
|                                                                                                                                                                                                                                                                                                                       |   |          | 1,048,368,638 |   |         |   | 1,044,799,257 |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                  |   |          | 12,724,095    |   |         |   | 19,958,376 |   |
| Tenant receivables, including accrued straight-line rent of $8,982,455 and  $8,570,069, respectively, net of allowance for uncollectible accounts                                                                                                                                                                |   |          | 17,822,311    |   |         |   | 18,537,031 |   |
| Other receivables                                                                                                                                                                                                                                                                                                          |   |          | 6,543,165     |   |         |   | 9,326,475 |   |
| Investments in unconsolidated entities, at equity                                                                                                                                                                                                                                                                          |   |          | 10,854,037    |   |         |   | 10,799,782 |   |
| Escrow deposits                                                                                                                                                                                                                                                                                                            |   |          | 10,801,443    |   |         |   | 11,377,408 |   |
| Deferred costs, net                                                                                                                                                                                                                                                                                                        |   |          | 21,830,481    |   |         |   | 21,509,070 |   |
| Prepaid and other assets                                                                                                                                                                                                                                                                                                   |   |          | 4,274,989     |   |         |   | 4,378,045 |   |
| Total Assets                                                                                                                                                                                                                                                                                                               |   | $             | 1,133,219,159 |   |         | $      | 1,140,685,444 |   |
|                                                                                                                                                                                                                                                                                                                       |   |          |          |   |         |   |   |   |
| Liabilities and Equity:                                                                                                                                                                                                                                                                                                    |   |          |          |   |         |   |   |   |
| Mortgage and other indebtedness                                                                                                                                                                                                                                                                                            |   | $             | 669,003,276   |   |         | $      | 658,294,513 |   |
| Accounts payable and accrued expenses                                                                                                                                                                                                                                                                                      |   |          | 38,573,656    |   |         |   | 32,799,351 |   |
| Deferred revenue and other liabilities                                                                                                                                                                                                                                                                                     |   |          | 15,850,978    |   |         |   | 19,835,438 |   |
| Total Liabilities                                                                                                                                                                                                                                                                                                          |   |          | 723,427,910   |   |         |   | 710,929,302 |   |
| Commitments and contingencies                                                                                                                                                                                                                                                                                              |   |          |          |   |         |   |   |   |
| Redeemable noncontrolling interests in Operating Partnership                                                                                                                                                                                                                                                               |   |          | 44,489,803    |   |         |   | 47,307,115 |   |
| Equity:                                                                                                                                                                                                                                                                                                                    |   |          |          |   |         |   |   |   |
|    Kite Realty Group Trust Shareholders' Equity:                                                                                                                                                                                                                                                            |   |          |          |   |         |   |   |   |
|       Preferred Shares, $.01 par value, 40,000,000 shares authorized, no shares      issued and outstanding                                                                                                                                                    |   |          | —       |   |         |   | — |   |
|       Common Shares, $.01 par value, 200,000,000 shares authorized,         63,332,646 shares and 63,062,083 shares issued and outstanding at         September 30, 2010 and December 31, 2009, respectively |   |          | 633,326       |   |         |   | 630,621 |   |
|       Additional paid in capital and other                                                                                                                                                                                                                                                   |   |          | 451,045,438   |   |         |   | 449,863,390 |   |
|       Accumulated other comprehensive loss                                                                                                                                                                                                                                                   |   |          | (4,866,031    | )      |         |   | (5,802,406 | ) |
|       Accumulated deficit                                                                                                                                                                                                                                                                    |   |          | (88,484,324   | )      |         |   | (69,613,763 | ) |
|    Total Kite Realty Group Trust Shareholders' Equity                                                                                                                                                                                                                                                       |   |          | 358,328,409   |   |         |   | 375,077,842 |   |
|    Noncontrolling Interests                                                                                                                                                                                                                                                                                 |   |          | 6,973,037     |   |         |   | 7,371,185 |   |
| Total Equity                                                                                                                                                                                                                                                                                                               |   |          | 365,301,446   |   |         |   | 382,449,027 |   |
| Total Liabilities and Equity                                                                                                                                                                                                                                                                                               |   | $             | 1,133,219,159 |   |         | $      | 1,140,685,444 |   |

----

Table of Contents

Condensed

|                                                                                                                                    |   | Three Months EndedSeptember 30, |       |   | Nine Months EndedSeptember 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|--------|--------------------------------|--------|
|                                                                                                                                    |   | 2010                            |       |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Revenue:                                                                                                                                |   |                            |       |   |                           |   |   |   |   |   |   |   |
|   Minimum rent                                                                                                                |   | $                               | 18,292,136 |   |                           | $      | 17,777,146 |   |   | $ | 53,768,732 |   |   | $ | 53,611,820 |   |
|   Tenant reimbursements                                                                                                       |   |                            | 4,246,120  |   |                           |   | 4,220,185 |   |   |   | 13,347,228 |   |   |   | 13,412,648 |   |
|   Other property related revenue                                                                                              |   |                            | 1,346,672  |   |                           |   | 1,027,057 |   |   |   | 3,295,520 |   |   |   | 4,387,131 |   |
|   Construction and service fee revenue                                                                                        |   |                            | 1,270,928  |   |                           |   | 2,684,209 |   |   |   | 5,101,126 |   |   |   | 14,595,667 |   |
| Total revenue                                                                                                                           |   |                            | 25,155,856 |   |                           |   | 25,708,597 |   |   |   | 75,512,606 |   |   |   | 86,007,266 |   |
| Expenses:                                                                                                                               |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|   Property operating                                                                                                          |   |                            | 4,496,055  |   |                           |   | 4,210,950 |   |   |   | 12,804,258 |   |   |   | 13,367,022 |   |
|   Real estate taxes                                                                                                           |   |                            | 3,158,006  |   |                           |   | 2,677,703 |   |   |   | 9,697,406 |   |   |   | 8,958,326 |   |
|   Cost of construction and services                                                                                           |   |                            | 1,147,383  |   |                           |   | 2,381,885 |   |   |   | 4,543,084 |   |   |   | 12,958,935 |   |
|   General, administrative, and other                                                                                          |   |                            | 1,260,314  |   |                           |   | 1,387,407 |   |   |   | 3,891,076 |   |   |   | 4,276,451 |   |
|   Depreciation and amortization                                                                                               |   |                            | 10,731,138 |   |                           |   | 7,725,827 |   |   |   | 31,441,383 |   |   |   | 23,865,302 |   |
| Total expenses                                                                                                                          |   |                            | 20,792,896 |   |                           |   | 18,383,772 |   |   |   | 62,377,207 |   |   |   | 63,426,036 |   |
| Operating income                                                                                                                        |   |                            | 4,362,960  |   |                           |   | 7,324,825 |   |   |   | 13,135,399 |   |   |   | 22,581,230 |   |
|   Interest expense                                                                                                            |   |                            | (6,978,767 | )      |                           |   | (6,815,787 | ) |   |   | (21,313,368 | ) |   |   | (20,583,919 | ) |
|   Income tax (expense) benefit of taxable REIT subsidiary                                                                     |   |                            | (80,954    | )      |                           |   | 80,714 |   |   |   | (234,054 | ) |   |   | 29,529 |   |
|   (Loss) income from unconsolidated entities                                                                                  |   |                            | (1,847     | )      |                           |   | 73,524 |   |   |   | (100,442 | ) |   |   | 226,041 |   |
|   Non-cash gain from consolidation of subsidiary                                                                              |   |                            | —    |   |                           |   | 1,634,876 |   |   |   | — |   |   |   | 1,634,876 |   |
|   Other income                                                                                                                |   |                            | 53,633     |   |                           |   | 42,229 |   |   |   | 186,193 |   |   |   | 126,735 |   |
| (Loss) income from continuing operations                                                                                                |   |                            | (2,644,975 | )      |                           |   | 2,340,381 |   |   |   | (8,326,272 | ) |   |   | 4,014,492 |   |
| Discontinued operations:                                                                                                                |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|   Operating loss from discontinued operations                                                                                 |   |                            | —    |   |                           |   | (231,261 | ) |   |   | — |   |   |   | (714,007 | ) |
|   Non-cash loss on impairment of real estate asset                                                                            |   |                            | —    |   |                           |   | (5,384,747 | ) |   |   | — |   |   |   | (5,384,747 | ) |
| Loss from discontinued operations                                                                                                       |   |                            | —    |   |                           |   | (5,616,008 | ) |   |   | — |   |   |   | (6,098,754 | ) |
| Consolidated net loss                                                                                                                   |   |                            | (2,644,975 | )      |                           |   | (3,275,627 | ) |   |   | (8,326,272 | ) |   |   | (2,084,262 | ) |
|   Net loss (income) attributable to noncontrolling interests                                                                  |   |                            | 255,021    |   |                           |   | (107,743 | ) |   |   | 841,083 |   |   |   | (340,781 | ) |
| Net loss attributable to Kite Realty Group Trust                                                                                        |   | $                               | (2,389,954 | )      |                           | $      | (3,383,370 | ) |   | $ | (7,485,189 | ) |   | $ | (2,425,043 | ) |
|                                                                                                                                    |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income per common share - basic & diluted:                                                                                   |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|   (Loss) income from continuing operations attributable to Kite Realty    Group Trust common shareholders |   | $                               | (0.04      | )      |                           | $      | 0.03 |   |   | $ | (0.12 | ) |   | $ | 0.06 |   |
|   Loss from discontinued operations attributable to Kite Realty Group    Trust common shareholders        |   |                            | —    |   |                           |   | (0.08 | ) |   |   | — |   |   |   | (0.11 | ) |
|   Net loss attributable to Kite Realty Group Trust common    shareholders                                 |   | $                               | (0.04      | )      |                           | $      | (0.05 | ) |   | $ | (0.12 | ) |   | $ | (0.05 | ) |
|                                                                                                                                    |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding - basic                                                                                      |   |                            | 63,288,181 |   |                           |   | 62,980,447 |   |   |   | 63,206,901 |   |   |   | 48,489,799 |   |
| Weighted average common shares outstanding - diluted                                                                                    |   |                            | 63,288,181 |   |                           |   | 62,980,447 |   |   |   | 63,206,901 |   |   |   | 48,489,799 |   |
|                                                                                                                                    |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Dividends declared per common share                                                                                                     |   | $                               | 0.0600     |   |                           | $      | 0.0600 |   |   | $ | 0.1800 |   |   | $ | 0.2725 |   |
|                                                                                                                                    |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income attributable to Kite Realty Group Trust  common shareholders:                                               |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income from continuing operations                                                                                                |   | $                               | (2,389,954 | )      |                           | $      | 1,445,303 |   |   | $ | (7,485,189 | ) |   | $ | 2,807,688 |   |
| Discontinued operations                                                                                                                 |   |                            | —    |   |                           |   | (4,828,673 | ) |   |   | — |   |   |   | (5,232,731 | ) |
| Net loss attributable to Kite Realty Group Trust  common shareholders                                                         |   | $                               | (2,389,954 | )      |                           | $      | (3,383,370 | ) |   | $ | (7,485,189 | ) |   | $ | (2,425,043 | ) |
|                                                                                                                                    |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated net loss                                                                                                                   |   | $                               | (2,644,975 | )      |                           | $      | (3,275,627 | ) |   | $ | (8,326,272 | ) |   | $ | (2,084,262 | ) |
| Other comprehensive income (loss)                                                                                                       |   |                            | 584,568    |   |                           |   | (66,851 | ) |   |   | 1,064,035 |   |   |   | 2,006,583 |   |
| Comprehensive loss                                                                                                                      |   |                            | (2,060,407 | )      |                           |   | (3,342,478 | ) |   |   | (7,262,237 | ) |   |   | (77,679 | ) |
| Comprehensive loss (income) attributable to noncontrolling interests                                                                    |   |                            | 181,378    |   |                           |   | (117,502 | ) |   |   | 713,423 |   |   |   | (1,313,698 | ) |
| Comprehensive loss attributable to Kite Realty Group Trust                                                                         |   | $                               | (1,879,029 | )      |                           | $      | (3,459,980 | ) |   | $ | (6,548,814 | ) |   | $ | (1,391,377 | ) |

----

Table of Contents

Condensed

|                                                                                            |                            |   |   |                          |   |   |                                                                  |   |   | Accumulated         |   |   |                    |   |   |                              |
|-------------------------------------------------------------------------------------------------|---------------------------------|--------|--------|-------------------------------|--------|--------|-----------------------------------------------------------------------|--------|--------|---------------------|--------|--------|-------------------------|--------|--------|-----------------------------------|
|                                                                                            |                            |   |   |                          |   |   |                                                                  |   |   | Other               |   |   |                    |   |   |                              |
|                                                                                            | Common Shares                   |   |   | Additional                    |   |   | Comprehensive                                                         |   |   | Accumulated         |   |   |                    |
|                                                                                            | Shares                          |   |   | Amount                        |   |   | Paid-in Capital                                                       |   |   | Loss                |   |   | Deficit                 |   |   | Total                             |
|                                                                                            |                            |   |   |                          |   |   |                                                                  |   |   |                |   |   |                    |   |   |                              |
| Balances, December 31, 2009                                                                     | 63,062,083                      |   | $      | 630,621                       |   | $      | 449,863,390                                                           |   | $      | (5,802,406)         |   | $      | (69,613,763)            |   | $      | 375,077,842                       |
| Stock compensation activity                                                                     | 147,751                         |   |   | 1,477                         |   |   | 572,180                                                               |   |   | —   |   |   | —       |   |   | 573,657                           |
| Proceeds from employee share  purchase plan                                           | 7,812                           |   |   | 78                            |   |   | 32,166                                                                |   |   | —   |   |   | —       |   |   | 32,244                            |
| Other comprehensive income                                                                      | —               |   |   | —             |   |   | —                                                     |   |   | 936,375             |   |   | —       |   |   | 936,375                           |
| Distributions declared                                                                          | —               |   |   | —             |   |   | —                                                     |   |   | —   |   |   | (11,385,372)            |   |   | (11,385,372)                      |
| Net loss                                                                                        | —               |   |   | —             |   |   | —                                                     |   |   | —   |   |   |   (7,485,189) |   |   | (7,485,189)                       |
| Exchange of redeemable  noncontrolling interests for  common stock          |     115,000 |   |   |     1,150 |   |   |         1,493,850             |   |   | —   |   |   | —       |   |   |     1,495,000 |
| Adjustment to redeemable  noncontrolling interests -  Operating Partnership | —               |   |   | —             |   |   |           (916,148) |   |   | —   |   |   | —       |   |   | (916,148)                         |
| Balances, September 30, 2010                                                                    | 63,332,646                      |   | $      | 633,326                       |   | $      | 451,045,438                                                           |   | $      | (4,866,031)         |   | $      | (88,484,324)            |   | $      | 358,328,409                       |

----

Table of Contents

Condensed 

|                                                                                         |   | Nine Months Ended September 30, |        |
|----------------------------------------------------------------------------------------------|--------|---------------------------------|-------------|
|                                                                                         |   | 2010                            |        |   | 2009 |   |
| Cash flows from operating activities:                                                        |   |                            |        |   |   |   |
| Consolidated net loss                                                                        |   | $                               | (8,326,272  | ) |   | $ | (2,084,262 | ) |
| Adjustments to reconcile consolidated net loss to net cash provided by operating activities: |   |                            |        |   |   |   |   |   |
| Non-cash loss on impairment of real estate asset                                             |   |                            | —     |   |   |   | 5,384,747 |   |
| Non-cash gain from consolidation of subsidiary                                               |   |                            | —     |   |   |   | (1,634,876 | ) |
| Equity in earnings of unconsolidated entities                                                |   |                            | 100,442     |   |   |   | (226,041 | ) |
| Straight-line rent                                                                           |   |                            | (415,806    | ) |   |   | (1,331,492 | ) |
| Depreciation and amortization                                                                |   |                            | 32,673,322  |   |   |   | 25,320,473 |   |
| Provision for credit losses                                                                  |   |                            | 1,014,616   |   |   |   | 1,571,161 |   |
| Compensation expense for equity awards                                                       |   |                            | 368,651     |   |   |   | 415,505 |   |
| Amortization of debt fair value adjustment                                                   |   |                            | (323,143    | ) |   |   | (323,143 | ) |
| Amortization of in-place lease liabilities                                                   |   |                            | (2,196,266  | ) |   |   | (2,333,755 | ) |
| Distributions of income from unconsolidated entities                                         |   |                            | —     |   |   |   | 145,701 |   |
| Changes in assets and liabilities:                                                           |   |                            |        |   |   |   |   |   |
| Tenant receivables                                                                           |   |                            | 115,909     |   |   |   | (213,528 | ) |
| Deferred costs and other assets                                                              |   |                            | (738,248    | ) |   |   | (2,059,747 | ) |
| Accounts payable, accrued expenses, deferred revenue and other liabilities                   |   |                            | 2,292,064   |   |   |   | (8,088,778 | ) |
| Net cash provided by operating activities                                                    |   |                            | 24,565,269  |   |   |   | 14,541,965 |   |
| Cash flows from investing activities:                                                        |   |                            |        |   |   |   |   |   |
| Acquisitions of interests in properties and capital expenditures, net                        |   |                            | (31,690,697 | ) |   |   | (26,725,899 | ) |
| Change in construction payables                                                              |   |                            | 2,748,621   |   |   |   | (3,244,039 | ) |
| Note receivable from joint venture partner                                                   |   |                            | —     |   |   |   | (1,375,298 | ) |
| Contributions to unconsolidated entities                                                     |   |                            | (154,697    | ) |   |   | (11,408,799 | ) |
| Cash from consolidation of subsidiary                                                        |   |                            | —     |   |   |   | 247,969 |   |
| Distributions of capital from unconsolidated entities                                        |   |                            | —     |   |   |   | 167,361 |   |
| Net cash used in investing activities                                                        |   |                            | (29,096,773 | ) |   |   | (42,338,705 | ) |
| Cash flows from financing activities:                                                        |   |                            |        |   |   |   |   |   |
| Offering proceeds, net of issuance costs                                                     |   |                            | 32,244      |   |   |   | 87,528,092 |   |
| Loan proceeds                                                                                |   |                            | 32,583,865  |   |   |   | 74,030,101 |   |
| Loan transaction costs                                                                       |   |                            | (467,830    | ) |   |   | (480,880 | ) |
| Loan payments                                                                                |   |                            | (21,551,958 | ) |   |   | (91,195,857 | ) |
| Distributions paid – common shareholders                                               |   |                            | (11,368,979 | ) |   |   | (15,966,913 | ) |
| Distributions paid – redeemable noncontrolling interests                               |   |                            | (1,435,263  | ) |   |   | (3,394,712 | ) |
| Distributions to noncontrolling interests in properties                                      |   |                            | (494,856    | ) |   |   | (73,666 | ) |
| Net cash (used in) provided by financing activities                                          |   |                            | (2,702,777  | ) |   |   | 50,446,165 |   |
| Net change in cash and cash equivalents                                                      |   |                            | (7,234,281  | ) |   |   | 22,649,425 |   |
| Cash and cash equivalents, beginning of period                                               |   |                            | 19,958,376  |   |   |   | 9,917,875 |   |
| Cash and cash equivalents, end of period                                                     |   | $                               | 12,724,095  |   |   | $ | 32,567,300 |   |

----

Table of Contents

Notes 

| · | the Company’s ability to manage day-to-day operations of the property; |
|--------|------------------------------------------------------------------------------|

| · | the Company’s ability to refinance debt and sell the property without the consent of any other partner or owner; |
|--------|------------------------------------------------------------------------------------------------------------------------|

| · | the inability of any other partner or owner to replace the Company as manager of the property; or |
|--------|---------------------------------------------------------------------------------------------------|

| · | being the primary beneficiary of a VIE.  The primary beneficiary is defined as the entity that has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                                                       |   | 2010   |      |   | 2009   |   |
|------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Noncontrolling interests balance January 1                                                                 |   | $      | 7,371,185 |   |   | $      | 4,416,533 |   |
| Net income allocable to noncontrolling interests,  excluding redeemable noncontrolling interests |   |   | 96,708    |   |   |   | 742,130 |   |
| Distributions to noncontrolling interests                                                                  |   |   | (494,856  | )      |   |   | (73,666 | ) |
| Recognition of noncontrolling interest upon  consolidation of a subsidiary                       |   |   | —   |   |   |   | 2,116,140 |   |
| Noncontrolling interests balance at September 30                                                           |   | $      | 6,973,037 |   |   | $      | 7,201,137 |   |

----

Table of Contents

|                                                                                     |   | 2010   |       |   | 2009   |   |
|------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Redeemable noncontrolling interests balance January 1                                    |   | $      | 47,307,115 |   |   | $      | 67,276,904 |   |
| Net loss allocable to redeemable noncontrolling interests                                |   |   | (937,791   | )      |   |   | (401,349 | ) |
| Accrued distributions to redeemable noncontrolling interests                             |   |   | (1,428,329 | )      |   |   | (2,193,847 | ) |
| Other comprehensive income allocable to redeemable  noncontrolling interests 1 |   |   | 127,660    |   |   |   | 972,917 |   |
| Exchange of redeemable noncontrolling interest for  common stock               |   |   | (1,495,000 | )      |   |   | — |   |
| Adjustment to redeemable noncontrolling interests -  operating partnership     |   |   | 916,148    |   |   |   | (17,668,867 | ) |
| Redeemable noncontrolling interests balance at September 30                              |   | $      | 44,489,803 |   |   | $      | 47,985,758 |   |

| ____________________ |
|----------------------|
| 1                    | Represents the noncontrolling interests’ share of the changes in the fair value of derivative instruments accounted for as cash flow hedges (see Note 7). |

|                                                                          |   | 2010   |     |   | 2009   |   |
|-------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Accumulated comprehensive loss balance at January 1                           |   | $      | (731,835 | )      |   | $      | (1,827,167 | ) |
| Other comprehensive income allocable to noncontrolling  interests 1 |   |   | 127,660  |   |   |   | 972,917 |   |
| Accumulated comprehensive loss balance at September 30                        |   | $      | (604,175 | )      |   | $      | (854,250 | ) |

|                 |
|----------------------|
| ____________________ |
| 1                    | Represents the noncontrolling interests’ share of the changes in the fair value of derivative instruments accounted for as cash flow hedges (see Note 7). |

|                                                                                             |   | Three Months Ended September 30, |   |   | Nine Months EndedSeptember 30, |   |
|--------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|
|                                                                                             |   | 2010                             |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Company’s weighted average basic interest in  Operating Partnership              |   |                             | 88.9   | %      |                           |   | 88.7 | % |   |   | 88.8 | % |   |   | 85.8 | % |
| Redeemable noncontrolling weighted average basic  interests in Operating Partnership   |   |                             | 11.1   | %      |                           |   | 11.3 | % |   |   | 11.2 | % |   |   | 14.2 | % |
|                                                                                             |   |                             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Company’s weighted average diluted interest in  Operating Partnership            |   |                             | 88.9   | %      |                           |   | 88.7 | % |   |   | 88.9 | % |   |   | 85.8 | % |
| Redeemable noncontrolling weighted average diluted  interests in Operating Partnership |   |                             | 11.1   | %      |                           |   | 11.3 | % |   |   | 11.1 | % |   |   | 14.2 | % |

----

Table of Contents

|                                                                              |   | Balance at         |        |
|-----------------------------------------------------------------------------------|--------|--------------------|-------------|
|                                                                              |   | September 30, 2010 |        |   | December 31, 2009 |   |
| Line of credit                                                                    |   | $                  | 104,800,000 |   |   | $ | 77,800,000 |   |
| Term loan                                                                         |   |               | 55,000,000  |   |   |   | 55,000,000 |   |
| Notes payable secured by properties under construction -  variable rate |   |               | 73,330,157  |   |   |   | 77,143,865 |   |
| Mortgage notes payable - fixed rate                                               |   |               | 296,592,410 |   |   |   | 300,893,193 |   |
| Mortgage notes payable - variable rate                                            |   |               | 138,626,083 |   |   |   | 146,479,685 |   |
| Net premiums on acquired debt                                                     |   |               | 654,626     |   |   |   | 977,770 |   |
| Total mortgage and other indebtedness                                             |   | $                  | 669,003,276 |   |   | $ | 658,294,513 |   |

----

Table of Contents

|                                                                              |   | Amount |         |   | Weighted Average Maturity (Years) |   |   | Weighted Average Interest Rate |   |   | Percentage of Total |   |
|-----------------------------------------------------------------------------------|--------|--------|--------------|--------|-----------------------------------|--------|--------|--------------------------------|--------|--------|---------------------|--------|
| Fixed rate debt                                                                   |   | $      | 296,592,410  |   |                              |   | 4.7    |                           |   |   | 6.08                | %      |   |   | 44 | % |
| Floating rate debt (hedged)                                                       |   |   | 219,447,225  |   |                              |   | 1.2    |                           |   |   | 5.70                | %      |   |   | 33 | % |
|   Total fixed rate debt, considering hedges                             |   |   | 516,039,635  |   |                              |   | 3.2    |                           |   |   | 5.92                | %      |   |   | 77 | % |
| Notes payable secured by properties under construction -  variable rate |   |   | 73,330,157   |   |                              |   | 2.0    |                           |   |   | 3.64                | %      |   |   | 11 | % |
| Other variable rate debt                                                          |   |   | 298,426,083  |   |                              |   | 1.6    |                           |   |   | 2.57                | %      |   |   | 45 | % |
| Floating rate debt (hedged)                                                       |   |   | (219,447,225 | )      |                              |   | -1.2   |                           |   |   | -2.49               | %      |   |   | -33 | % |
|   Total variable rate debt, considering hedges                          |   |   | 152,309,015  |   |                              |   | 2.5    |                           |   |   | 3.20                | %      |   |   | 23 | % |
| Net premiums on acquired debt                                                     |   |   | 654,626      |   |                              |   | N/A    |                           |   |   | N/A                 |   |   |   | N/A |   |
|   Total debt                                                            |   | $      | 669,003,276  |   |                              |   | 3.1    |                           |   |   | 5.30                | %      |   |   | 100 | % |

| ·   | Draws of $27.0 million were made on the unsecured revolving credit facility; |
|--------------------|------------------------------------------------------------------------------|

| ·   | Draws of $5.4 million were made on the variable rate construction loan at the Eddy Street Commons development project; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company made scheduled paydowns totaling $4.7 million on the Delray Marketplace construction loan.  After the paydowns, the total loan commitment as of September 30, 2010 was $4.7 million; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Upon release of the funds from escrow, the Company made a paydown of $2.1 million on the Traders Point fixed rate loan; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company made a paydown of $0.8 million on the Glendale Town Center variable rate loan; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | The Company made a paydown of $5.1 million on the Bayport Commons variable rate loan; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | The maturity date of the construction loan on the South Elgin Commons property was extended to September 2013 at an interest rate of LIBOR + 325 basis points.  The Company funded a $1.6 million paydown with cash and borrowings on the unsecured revolving credit facility; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The maturity date of the variable rate loan on the Shops at Rivers Edge property was extended to February 2013 at an interest rate of LIBOR + 400 basis points.  The Company funded a $0.6 million paydown with cash.  The Company intends to convert this loan to a construction loan for the redevelopment of the asset; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The maturity date of the construction loan on the Cobblestone Plaza property was extended to February 2013 at an interest rate of LIBOR + 350 basis points.  The Company funded a $2.9 million paydown with cash and borrowings on the unsecured revolving credit facility; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company made principal payments totaling $3.7 million. |
|--------------------|------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

|                                                                               |   | Three months endedSeptember 30, |       |   | Nine months endedSeptember 30, |   |
|------------------------------------------------------------------------------------|--------|---------------------------------|------------|--------|--------------------------------|--------|
|                                                                               |   | 2010                            |       |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Net loss attributable to Kite Realty  Group Trust                        |   | $                               | (2,389,954 | )      |                           | $      | (3,383,370 | ) |   | $ | (7,485,189 | ) |   | $ | (2,425,043 | ) |
| Other comprehensive income (loss) allocable to  Kite Realty Group Trust1 |   |                            | 510,925    |   |                           |   | (76,610 | ) |   |   | 936,375 |   |   |   | 1,033,666 |   |
| Comprehensive loss attributable to Kite  Realty Group Trust              |   | $                               | (1,879,029 | )      |                           | $      | (3,459,980 | ) |   | $ | (6,548,814 | ) |   | $ | (1,391,377 | ) |

| ____________________ |
|----------------------|
| 1                    | Reflects the Company’s share of the net change in the fair value of derivative instruments accounted for as cash flow hedges. |

----

Table of Contents

| Three Months EndedSeptember 30, 2010                                                                |   | Real Estate Operations |          |   | Development, Construction and Advisory Services |   |       | Subtotal |   |   | Intersegment Eliminations |   |   | Total  |        |
|-----------------------------------------------------------------------------------------------------|--------|------------------------|---------------|--------|-------------------------------------------------|--------|------------|----------|--------|--------|---------------------------|--------|--------|--------|-------------|
| Revenues                                                                                            |   | $                      | 24,004,078    |   |                                            | $      | 2,605,317  |     |   | $      | 26,609,395                |   |   | $      | (1,453,539  | ) |   | $ | 25,155,856 |   |
| Operating expenses, cost of construction and  services, general, administrative and other |   |                   | 8,901,375     |   |                                            |   | 2,620,079  |     |   |   | 11,521,454                |   |   |   | (1,459,696  | ) |   |   | 10,061,758 |   |
| Depreciation and amortization                                                                       |   |                   | 10,686,079    |   |                                            |   | 45,059     |     |   |   | 10,731,138                |   |   |   | —     |   |   |   | 10,731,138 |   |
| Operating income                                                                                    |   |                   | 4,416,624     |   |                                            |   | (59,821    | )        |   |   | 4,356,803                 |   |   |   | 6,157       |   |   |   | 4,362,960 |   |
| Interest expense                                                                                    |   |                   | (7,087,850    | )      |                                            |   | (34,638    | )        |   |   | (7,122,488                | )      |   |   | 143,721     |   |   |   | (6,978,767 | ) |
| Income tax expense of taxable REIT subsidiary                                                       |   |                   | —       |   |                                            |   | (80,954    | )        |   |   | (80,954                   | )      |   |   | —     |   |   |   | (80,954 | ) |
| Loss from unconsolidated entities                                                                   |   |                   | (1,847        | )      |                                            |   | —    |     |   |   | (1,847                    | )      |   |   | —     |   |   |   | (1,847 | ) |
| Other income                                                                                        |   |                   | 197,378       |   |                                            |   | (24        | )        |   |   | 197,354                   |   |   |   | (143,721    | ) |   |   | 53,633 |   |
| Consolidated net loss                                                                               |   |                   | (2,475,695    | )      |                                            |   | (175,437   | )        |   |   | (2,651,132                | )      |   |   | 6,157       |   |   |   | (2,644,975 | ) |
| Net loss attributable to noncontrolling  interests                                        |   |                   | 234,415       |   |                                            |   | 21,287     |     |   |   | 255,702                   |   |   |   | (681        | ) |   |   | 255,021 |   |
| Net loss attributable to Kite Realty  Group Trust                                         |   | $                      | (2,241,280    | )      |                                            | $      | (154,150   | )        |   | $      | (2,395,430                | )      |   | $      | 5,476       |   |   | $ | (2,389,954 | ) |
| Total assets at September 30, 2010                                                                  |   | $                      | 1,134,447,193 |   |                                            | $      | 17,258,358 |     |   | $      | 1,151,705,551             |   |   | $      | (18,486,392 | ) |   | $ | 1,133,219,159 |   |

----

Table of Contents

| Three Months EndedSeptember 30, 2009                                                                |   | Real Estate Operations |          |   | Development, Construction and Advisory Services |   |       | Subtotal |   |   | Intersegment Eliminations |   |   | Total  |        |
|-----------------------------------------------------------------------------------------------------|--------|------------------------|---------------|--------|-------------------------------------------------|--------|------------|----------|--------|--------|---------------------------|--------|--------|--------|-------------|
| Revenues                                                                                            |   | $                      | 23,362,307    |   |                                            | $      | 7,663,759  |     |   | $      | 31,026,066                |   |   | $      | (5,317,469  | ) |   | $ | 25,708,597 |   |
| Operating expenses, cost of construction and  services, general, administrative and other |   |                   | 7,647,896     |   |                                            |   | 8,140,075  |     |   |   | 15,787,971                |   |   |   | (5,130,026  | ) |   |   | 10,657,945 |   |
| Depreciation and amortization                                                                       |   |                   | 7,682,049     |   |                                            |   | 43,778     |     |   |   | 7,725,827                 |   |   |   | —     |   |   |   | 7,725,827 |   |
| Operating income (loss)                                                                             |   |                   | 8,032,362     |   |                                            |   | (520,094   | )        |   |   | 7,512,268                 |   |   |   | (187,443    | ) |   |   | 7,324,825 |   |
| Interest expense                                                                                    |   |                   | (6,861,587    | )      |                                            |   | (72,027    | )        |   |   | (6,933,614                | )      |   |   | 117,827     |   |   |   | (6,815,787 | ) |
| Income tax benefit of taxable REIT subsidiary                                                       |   |                   | —       |   |                                            |   | 80,714     |     |   |   | 80,714                    |   |   |   | —     |   |   |   | 80,714 |   |
| Income from unconsolidated entities                                                                 |   |                   | 54,047        |   |                                            |   | —    |     |   |   | 54,047                    |   |   |   | 19,477      |   |   |   | 73,524 |   |
| Non-cash gain from consolidation of subsidiary                                                      |   |                   | 1,634,876     |   |                                            |   | —    |     |   |   | 1,634,876                 |   |   |   | —     |   |   |   | 1,634,876 |   |
| Other income                                                                                        |   |                   | 178,618       |   |                                            |   | 915        |     |   |   | 179,533                   |   |   |   | (137,304    | ) |   |   | 42,229 |   |
| Income (loss) from continuing operations                                                            |   |                   | 3,038,316     |   |                                            |   | (510,492   | )        |   |   | 2,527,824                 |   |   |   | (187,443    | ) |   |   | 2,340,381 |   |
| Operating loss from discontinued operations                                                         |   |                   | (231,261      | )      |                                            |   | —    |     |   |   | (231,261                  | )      |   |   | —     |   |   |   | (231,261 | ) |
| Non-cash loss on impairment of real estate  asset                                         |   |                   | (5,384,747    | )      |                                            |   | —    |     |   |   | (5,384,747                | )      |   |   | —     |   |   |   | (5,384,747 | ) |
| Loss from discontinued operations                                                                   |   |                   | (5,616,008    | )      |                                            |   | —    |     |   |   | (5,616,008                | )      |   |   | —     |   |   |   | (5,616,008 | ) |
| Consolidated net loss                                                                               |   |                   | (2,577,692    | )      |                                            |   | (510,492   | )        |   |   | (3,088,184                | )      |   |   | (187,443    | ) |   |   | (3,275,627 | ) |
| Net (income) loss attributable to noncontrolling  interests                               |   |                   | (211,066      | )      |                                            |   | 75,574     |     |   |   | (135,492                  | )      |   |   | 27,749      |   |   |   | (107,743 | ) |
| Net loss attributable to Kite Realty  Group Trust                                         |   | $                      | (2,788,758    | )      |                                            | $      | (434,918   | )        |   | $      | (3,223,676                | )      |   | $      | (159,694    | ) |   | $ | (3,383,370 | ) |
| Total assets at September 30, 2009                                                                  |   | $                      | 1,146,428,106 |   |                                            | $      | 30,826,625 |     |   | $      | 1,177,254,731             |   |   | $      | (26,901,952 | ) |   | $ | 1,150,352,779 |   |

| Nine Months EndedSeptember 30, 2010                                                                 |   | Real Estate Operations |          |   | Development, Construction and Advisory Services |   |       | Subtotal |   |   | Intersegment Eliminations |   |   | Total  |        |
|-----------------------------------------------------------------------------------------------------|--------|------------------------|---------------|--------|-------------------------------------------------|--------|------------|----------|--------|--------|---------------------------|--------|--------|--------|-------------|
| Revenues                                                                                            |   | $                      | 70,924,295    |   |                                            | $      | 10,222,316 |     |   | $      | 81,146,611                |   |   | $      | (5,634,005  | ) |   | $ | 75,512,606 |   |
| Operating expenses, cost of construction and  services, general, administrative and other |   |                   | 26,562,405    |   |                                            |   | 10,036,741 |     |   |   | 36,599,146                |   |   |   | (5,663,322  | ) |   |   | 30,935,824 |   |
| Depreciation and amortization                                                                       |   |                   | 31,305,267    |   |                                            |   | 136,116    |     |   |   | 31,441,383                |   |   |   | —     |   |   |   | 31,441,383 |   |
| Operating income                                                                                    |   |                   | 13,056,623    |   |                                            |   | 49,459     |     |   |   | 13,106,082                |   |   |   | 29,317      |   |   |   | 13,135,399 |   |
| Interest expense                                                                                    |   |                   | (21,632,021   | )      |                                            |   | (130,538   | )        |   |   | (21,762,559               | )      |   |   | 449,191     |   |   |   | (21,313,368 | ) |
| Income tax expense of taxable REIT subsidiary                                                       |   |                   | —       |   |                                            |   | (234,054   | )        |   |   | (234,054                  | )      |   |   | —     |   |   |   | (234,054 | ) |
| Loss from unconsolidated entities                                                                   |   |                   | (100,442      | )      |                                            |   | —    |     |   |   | (100,442                  | )      |   |   | —     |   |   |   | (100,442 | ) |
| Other income                                                                                        |   |                   | 627,167       |   |                                            |   | 8,217      |     |   |   | 635,384                   |   |   |   | (449,191    | ) |   |   | 186,193 |   |
| Consolidated net loss                                                                               |   |                   | (8,048,673    | )      |                                            |   | (306,916   | )        |   |   | (8,355,589                | )      |   |   | 29,317      |   |   |   | (8,326,272 | ) |
| Net loss attributable to noncontrolling  interests                                        |   |                   | 797,857       |   |                                            |   | 46,490     |     |   |   | 844,347                   |   |   |   | (3,264      | ) |   |   | 841,083 |   |
| Net loss attributable to Kite Realty Group  Trust                                         |   | $                      | (7,250,816    | )      |                                            | $      | (260,426   | )        |   | $      | (7,511,242                | )      |   | $      | 26,053      |   |   | $ | (7,485,189 | ) |
| Total assets at September 30, 2010                                                                  |   | $                      | 1,134,447,193 |   |                                            | $      | 17,258,358 |     |   | $      | 1,151,705,551             |   |   | $      | (18,486,392 | ) |   | $ | 1,133,219,159 |   |

----

Table of Contents

| Nine Months EndedSeptember 30, 2009                                                                 |   | Real Estate Operations |          |   | Development, Construction and Advisory Services |   |       | Subtotal |   |   | Intersegment Eliminations |   |   | Total  |        |
|-----------------------------------------------------------------------------------------------------|--------|------------------------|---------------|--------|-------------------------------------------------|--------|------------|----------|--------|--------|---------------------------|--------|--------|--------|-------------|
| Revenues                                                                                            |   | $                      | 72,003,441    |   |                                            | $      | 35,640,745 |     |   | $      | 107,644,186               |   |   | $      | (21,636,920 | ) |   | $ | 86,007,266 |   |
| Operating expenses, cost of construction and  services, general, administrative and other |   |                   | 24,443,286    |   |                                            |   | 36,544,331 |     |   |   | 60,987,617                |   |   |   | (21,426,883 | ) |   |   | 39,560,734 |   |
| Depreciation and amortization                                                                       |   |                   | 23,731,483    |   |                                            |   | 133,819    |     |   |   | 23,865,302                |   |   |   | —     |   |   |   | 23,865,302 |   |
| Operating income (loss)                                                                             |   |                   | 23,828,672    |   |                                            |   | (1,037,405 | )        |   |   | 22,791,267                |   |   |   | (210,037    | ) |   |   | 22,581,230 |   |
| Interest expense                                                                                    |   |                   | (20,835,719   | )      |                                            |   | (90,022    | )        |   |   | (20,925,741               | )      |   |   | 341,822     |   |   |   | (20,583,919 | ) |
| Income tax benefit of taxable REIT subsidiary                                                       |   |                   | —       |   |                                            |   | 29,529     |     |   |   | 29,529                    |   |   |   | —     |   |   |   | 29,529 |   |
| Income from unconsolidated entities                                                                 |   |                   | 206,564       |   |                                            |   | —    |     |   |   | 206,564                   |   |   |   | 19,477      |   |   |   | 226,041 |   |
| Non-cash gain from consolidation of subsidiary                                                      |   |                   | 1,634,876     |   |                                            |   | —    |     |   |   | 1,634,876                 |   |   |   | —     |   |   |   | 1,634,876 |   |
| Other income                                                                                        |   |                   | 486,724       |   |                                            |   | 1,310      |     |   |   | 488,034                   |   |   |   | (361,299    | ) |   |   | 126,735 |   |
| Income (loss) from continuing operations                                                            |   |                   | 5,321,117     |   |                                            |   | (1,096,588 | )        |   |   | 4,224,529                 |   |   |   | (210,037    | ) |   |   | 4,014,492 |   |
| Operating loss from discontinued operations                                                         |   |                   | (714,007      | )      |                                            |   | —    |     |   |   | (714,007                  | )      |   |   | —     |   |   |   | (714,007 | ) |
| Non-cash loss on impairment of real estate  asset                                         |   |                   | (5,384,747    | )      |                                            |   | —    |     |   |   | (5,384,747                | )      |   |   | —     |   |   |   | (5,384,747 | ) |
| Loss from discontinued operations                                                                   |   |                   | (6,098,754    | )      |                                            |   | —    |     |   |   | (6,098,754                | )      |   |   | —     |   |   |   | (6,098,754 | ) |
| Consolidated net loss                                                                               |   |                   | (777,637      | )      |                                            |   | (1,096,588 | )        |   |   | (1,874,225                | )      |   |   | (210,037    | ) |   |   | (2,084,262 | ) |
| Net (income) loss attributable to noncontrolling  interests                               |   |                   | (526,322      | )      |                                            |   | 155,716    |     |   |   | (370,606                  | )      |   |   | 29,825      |   |   |   | (340,781 | ) |
| Net loss attributable to Kite Realty  Group Trust                                         |   | $                      | (1,303,959    | )      |                                            | $      | (940,872   | )        |   | $      | (2,244,831                | )      |   | $      | (180,212    | ) |   | $ | (2,425,043 | ) |
| Total assets at September 30, 2009                                                                  |   | $                      | 1,146,428,106 |   |                                            | $      | 30,826,625 |     |   | $      | 1,177,254,731             |   |   | $      | (26,901,952 | ) |   | $ | 1,150,352,779 |   |

----

Table of Contents

----

Table of Contents

Cautionary 

| ·   | national and local economic, business, real estate and other market conditions, particularly in light of the current economic challenges; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | financing risks, including the availability of and costs associated with sources of liquidity; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | the Company’s ability to refinance, or extend the maturity dates of, its indebtedness; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | the level and volatility of interest rates; |
|--------------------|---------------------------------------------|

| ·   | the financial stability of tenants, including their ability to pay rent and the risk of tenant bankruptcies; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | the competitive environment in which the Company operates; |
|--------------------|------------------------------------------------------------|

| ·   | acquisition, disposition, development and joint venture risks; |
|--------------------|----------------------------------------------------------------|

| ·   | property ownership and management risks; |
|--------------------|------------------------------------------|

| ·   | the Company’s ability to maintain its status as a real estate investment trust (“REIT”) for federal income tax purposes; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | potential environmental and other liabilities; |
|--------------------|------------------------------------------------|

| ·   | impairment in the value of real estate property the Company owns; |
|--------------------|-------------------------------------------------------------------|

| ·   | risks related to the geographical concentration of our properties in Indiana, Florida and Texas; |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | other factors affecting the real estate industry generally; and |
|--------------------|-----------------------------------------------------------------|

| ·   | other uncertainties and factors identified in this Quarterly Report on Form 10-Q and, from time to time, in other reports we file with the Securities and Exchange Commission (the “SEC”) or in other documents that we publicly disseminate, including, in particular, the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2009, and in our quarterly reports on Form 10-Q. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

Item 2

----

Table of Contents

----

Table of Contents

| Property Name                |   | MSA                |   | Economic Occupancy Date1 |   | Owned GLA |   |
|------------------------------|--------|--------------------|--------|--------------------------|--------|-----------|--------|
| Eddy Street Commons, Phase I |   | South Bend, IN     |   | September 2009           |   | 165,000   |   |
| South Elgin Commons          |   | Chicago, IL        |   | June 2009                |   | 45,000    |   |
| Cobblestone Plaza            |   | Ft. Lauderdale, FL |   | March 2009               |   | 157,957   |   |

| ____________________ |
|----------------------|
| 1                    | Represents the date in which we started receiving rental payments under tenant leases at the property or phases of the property or the tenant took possession of the property, whichever occurred first. |

| Property Name        |   | MSA                      |   | Transition Date1 |   | Owned GLA |
|----------------------|--------|--------------------------|--------|------------------|--------|-----------|
| Coral Springs Plaza  |   | Ft. Lauderdale, Florida  |   | March 2009       |   | 45,906    |
| Courthouse Shadows   |   | Naples, Florida          |   | September 2008   |   | 134,867   |
| Four Corner Square   |   | Maple Valley, Washington |   | September 2008   |   | 29,177    |
| Bolton Plaza         |   | Jacksonville, Florida    |   | June 2008        |   | 172,938   |
| Shops at Rivers Edge |   | Indianapolis, Indiana    |   | June 2008        |   | 110,875   |

| ____________________ |
|----------------------|
| 1                    | Transition date represents the date the property was transferred from our operating portfolio to our redevelopment projects. |

----

Table of Contents

|                                                                                                                              |   | 2010   |       |   | 2009   |   |       | Net change 2010 to 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|-------------------------|--------|
| Revenue:                                                                                                                          |   |   |       |   |   |   |       |                    |   |
|     Rental income (including tenant reimbursements)                                                           |   | $      | 22,538,256 |   |   | $      | 21,997,331 |                    |   | $ | 540,925 |   |
|     Other property related revenue                                                                            |   |   | 1,346,672  |   |   |   | 1,027,057  |                    |   |   | 319,615 |   |
|     Construction and service fee revenue                                                                      |   |   | 1,270,928  |   |   |   | 2,684,209  |                    |   |   | (1,413,281 | ) |
| Total Revenue                                                                                                                     |   |   | 25,155,856 |   |   |   | 25,708,597 |                    |   |   | (552,741 | ) |
| Expenses:                                                                                                                         |   |   |       |   |   |   |       |                    |   |   |   |   |
|     Property operating expense                                                                                |   |   | 4,496,055  |   |   |   | 4,210,950  |                    |   |   | 285,105 |   |
|     Real estate taxes                                                                                         |   |   | 3,158,006  |   |   |   | 2,677,703  |                    |   |   | 480,303 |   |
|     Cost of construction and services                                                                         |   |   | 1,147,383  |   |   |   | 2,381,885  |                    |   |   | (1,234,502 | ) |
|     General, administrative, and other                                                                        |   |   | 1,260,314  |   |   |   | 1,387,407  |                    |   |   | (127,093 | ) |
|     Depreciation and amortization                                                                             |   |   | 10,731,138 |   |   |   | 7,725,827  |                    |   |   | 3,005,311 |   |
| Total Expenses                                                                                                                    |   |   | 20,792,896 |   |   |   | 18,383,772 |                    |   |   | 2,409,124 |   |
| Operating income                                                                                                                  |   |   | 4,362,960  |   |   |   | 7,324,825  |                    |   |   | (2,961,865 | ) |
|     Interest expense                                                                                          |   |   | (6,978,767 | )      |   |   | (6,815,787 | )                       |   |   | (162,980 | ) |
|     Income tax (expense) benefit of taxable REIT      subsidiary                |   |   | (80,954    | )      |   |   | 80,714     |                    |   |   | (161,668 | ) |
|     (Loss) income from unconsolidated entities                                                                |   |   | (1,847     | )      |   |   | 73,524     |                    |   |   | (75,371 | ) |
|     Non-cash gain from consolidation of subsidiary                                                            |   |   | —    |   |   |   | 1,634,876  |                    |   |   | (1,634,876 | ) |
|     Other income                                                                                              |   |   | 53,633     |   |   |   | 42,229     |                    |   |   | 11,404 |   |
| (Loss) income from continuing operations                                                                                          |   |   | (2,644,975 | )      |   |   | 2,340,381  |                    |   |   | (4,985,356 | ) |
| Discontined operations                                                                                                            |   |   |       |   |   |   |       |                    |   |   |   |   |
|     Operating loss from discontinued operations                                                               |   |   | —    |   |   |   | (231,261   | )                       |   |   | 231,261 |   |
|     Non-cash loss on impairment of real estate asset                                                          |   |   | —    |   |   |   | (5,384,747 | )                       |   |   | 5,384,747 |   |
| Loss from discontinued operations                                                                                                 |   |   | —    |   |   |   | (5,616,008 | )                       |   |   | 5,616,008 |   |
| Consolidated net loss                                                                                                             |   |   | (2,644,975 | )      |   |   | (3,275,627 | )                       |   |   | 630,652 |   |
|     Net loss (income) attributable to noncontrolling        interests |   |   | 255,021    |   |   |   | (107,743   | )                       |   |   | 362,764 |   |
| Net loss attributable to Kite Realty Group    Trust                                                           |   | $      | (2,389,954 | )      |   | $      | (3,383,370 | )                       |   | $ | 993,416 |   |

|                                                                                                        |   | Net change 2010 to 2009 |     |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------|
| Development properties that became operational or were partially  operational in 2009 and/or 2010 |   | $                       | 592,733  |   |
| Consolidation of The Centre                                                                                 |   |                    | 369,253  |   |
| Properties under redevelopment during 2009 and/or 2010                                                      |   |                    | (194,812 | ) |
| Properties fully operational during 2009 and 2010 and other                                                 |   |                    | (226,249 | ) |
| Total                                                                                                       |   | $                       | 540,925  |   |

----

Table of Contents

|                                                                                                        |   | Net change 2010 to 2009 |    |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
| Development properties that became operational or were partially  operational in 2009 and/or 2010 |   | $                       | 230,433 |   |
| Consolidation of The Centre                                                                                 |   |                    | 95,068  |   |
| Properties under redevelopment during 2009 and/or 2010                                                      |   |                    | (20,041 | ) |
| Properties fully operational during 2009 and 2010 and other                                                 |   |                    | (20,355 | ) |
| Total                                                                                                       |   | $                       | 285,105 |   |

|                                                                                                        |   | Net change 2010 to 2009 |    |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
| Development properties that became operational or were partially  operational in 2009 and/or 2010 |   | $                       | 222,967 |   |
| Consolidation of The Centre                                                                                 |   |                    | 43,353  |   |
| Properties under redevelopment during 2009 and/or 2010                                                      |   |                    | 20,371  |   |
| Properties fully operational during 2009 and 2010 and other                                                 |   |                    | 193,612 |   |
| Total                                                                                                       |   | $                       | 480,303 |   |

----

Table of Contents

|                                                                                                        |   | Net change 2010 to 2009 |      |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
| Development properties that became operational or were partially  operational in 2009 and/or 2010 |   | $                       | 309,820   |   |
| Consolidation of The Centre                                                                                 |   |                    | 199,293   |   |
| Properties under redevelopment during 2009 and/or 2010                                                      |   |                    | 2,332,880 |   |
| Properties fully operational during 2009 and 2010 and other                                                 |   |                    | 163,318   |   |
| Total                                                                                                       |   | $                       | 3,005,311 |   |

----

Table of Contents

|                                                                                                                              |   | 2010   |        |   | 2009   |   |        | Net change 2010 to 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|-------------------------|--------|
| Revenue:                                                                                                                          |   |   |        |   |   |   |        |                    |   |
|     Rental income (including tenant reimbursements)                                                           |   | $      | 67,115,960  |   |   | $      | 67,024,468  |                    |   | $ | 91,492 |   |
|     Other property related revenue                                                                            |   |   | 3,295,520   |   |   |   | 4,387,131   |                    |   |   | (1,091,611 | ) |
|     Construction and service fee revenue                                                                      |   |   | 5,101,126   |   |   |   | 14,595,667  |                    |   |   | (9,494,541 | ) |
| Total Revenue                                                                                                                     |   |   | 75,512,606  |   |   |   | 86,007,266  |                    |   |   | (10,494,660 | ) |
| Expenses:                                                                                                                         |   |   |        |   |   |   |        |                    |   |   |   |   |
|     Property operating expense                                                                                |   |   | 12,804,258  |   |   |   | 13,367,022  |                    |   |   | (562,764 | ) |
|     Real estate taxes                                                                                         |   |   | 9,697,406   |   |   |   | 8,958,326   |                    |   |   | 739,080 |   |
|     Cost of construction and services                                                                         |   |   | 4,543,084   |   |   |   | 12,958,935  |                    |   |   | (8,415,851 | ) |
|     General, administrative, and other                                                                        |   |   | 3,891,076   |   |   |   | 4,276,451   |                    |   |   | (385,375 | ) |
|     Depreciation and amortization                                                                             |   |   | 31,441,383  |   |   |   | 23,865,302  |                    |   |   | 7,576,081 |   |
| Total Expenses                                                                                                                    |   |   | 62,377,207  |   |   |   | 63,426,036  |                    |   |   | (1,048,829 | ) |
| Operating income                                                                                                                  |   |   | 13,135,399  |   |   |   | 22,581,230  |                    |   |   | (9,445,831 | ) |
|     Interest expense                                                                                          |   |   | (21,313,368 | )      |   |   | (20,583,919 | )                       |   |   | (729,449 | ) |
|     Income tax (expense) benefit of taxable REIT      subsidiary                |   |   | (234,054    | )      |   |   | 29,529      |                    |   |   | (263,583 | ) |
|     (Loss) income from unconsolidated entities                                                                |   |   | (100,442    | )      |   |   | 226,041     |                    |   |   | (326,483 | ) |
|     Non-cash gain from consolidation of subsidiary                                                            |   |   | —     |   |   |   | 1,634,876   |                    |   |   | (1,634,876 | ) |
|     Other income                                                                                              |   |   | 186,193     |   |   |   | 126,735     |                    |   |   | 59,458 |   |
| (Loss) income from continuing operations                                                                                          |   |   | (8,326,272  | )      |   |   | 4,014,492   |                    |   |   | (12,340,764 | ) |
| Discontined operations                                                                                                            |   |   |        |   |   |   |        |                    |   |   |   |   |
|     Operating loss from discontinued operations                                                               |   |   | —     |   |   |   | (714,007    | )                       |   |   | 714,007 |   |
|     Non-cash loss on impairment of real estate asset                                                          |   |   | —     |   |   |   | (5,384,747  | )                       |   |   | 5,384,747 |   |
| Loss from discontinued operations                                                                                                 |   |   | —     |   |   |   | (6,098,754  | )                       |   |   | 6,098,754 |   |
| Consolidated net loss                                                                                                             |   |   | (8,326,272  | )      |   |   | (2,084,262  | )                       |   |   | (6,242,010 | ) |
|     Net loss (income) attributable to noncontrolling        interests |   |   | 841,083     |   |   |   | (340,781    | )                       |   |   | 1,181,864 |   |
| Net loss attributable to Kite Realty Group    Trust                                                           |   | $      | (7,485,189  | )      |   | $      | (2,425,043  | )                       |   | $ | (5,060,146 | ) |

|                                                                                                        |   | Net change 2010 to 2009 |       |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|
| Development properties that became operational or were partially  operational in 2009 and/or 2010 |   | $                       | 2,414,253  |   |
| Consolidation of The Centre                                                                                 |   |                    | 949,477    |   |
| Properties under redevelopment during 2009 and/or 2010                                                      |   |                    | (562,425   | ) |
| Properties fully operational during 2009 and 2010 and other                                                 |   |                    | (2,709,813 | ) |
| Total                                                                                                       |   | $                       | 91,492     |   |

| ·   | $1.1 million decrease in tenant reimbursements due to a reduction in recoverable property operating expenses; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | $0.5 million decrease at two of our properties due to the bankruptcy of Circuit City in 2009; |
|--------------------|-----------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | $0.5 million due to higher write offs of straight-line rent receivable in 2010 related to terminated tenants; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | $0.4 million from the 2009 sale of Eagle Creek II asset; and |
|--------------------|--------------------------------------------------------------|

| ·   | $0.2 million related to the net decrease in tenancy at these properties between periods. |
|--------------------|------------------------------------------------------------------------------------------|

|                                                                                                        |   | Net change 2010 to 2009 |       |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|
| Development properties that became operational or were partially  operational in 2009 and/or 2010 |   | $                       | 428,398    |   |
| Consolidation of The Centre                                                                                 |   |                    | 196,626    |   |
| Properties under redevelopment during 2009 and/or 2010                                                      |   |                    | (163,439   | ) |
| Properties fully operational during 2009 and 2010 and other                                                 |   |                    | (1,024,349 | ) |
| Total                                                                                                       |   | $                       | (562,764   | ) |

| ·   | $0.4 million net decrease in bad debt expense at a number of our operating properties; and |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | $0.7 million decrease (due to cost containment efforts) in landscaping, parking lot, repairs, maintenance and insurance expenses, a portion of which is refundable to tenants and reflected as a reduction in tenant reimbursement revenue; offset by a $0.1 million increase in various other operating expenses. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                        |   | Net change 2010 to 2009 |      |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
| Development properties that became operational or were partially  operational in 2009 and/or 2010 |   | $                       | 1,021,648 |   |
| Consolidation of The Centre                                                                                 |   |                    | 113,854   |   |
| Properties under redevelopment during 2009 and/or 2010                                                      |   |                    | (130,423  | ) |
| Properties fully operational during 2009 and 2010 and other                                                 |   |                    | (265,999  | ) |
| Total                                                                                                       |   | $                       | 739,080   |   |

----

Table of Contents

|                                                                                                        |   | Net change 2010 to 2009 |      |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
| Development properties that became operational or were partially  operational in 2009 and/or 2010 |   | $                       | 808,074   |   |
| Consolidation of The Centre                                                                                 |   |                    | 609,666   |   |
| Properties under redevelopment during 2009 and/or 2010                                                      |   |                    | 5,813,520 |   |
| Properties fully operational during 2009 and 2010 and other                                                 |   |                    | 344,821   |   |
| Total                                                                                                       |   | $                       | 7,576,081 |   |

----

Table of Contents

----

Table of Contents

|                            |   | Amounts due during the three months ended: |       |   |          |   |
|---------------------------------|--------|--------------------------------------------|------------|--------|---------------|--------|
|                            |   | March 31, 2011                             |       |   | June 30, 2011 |   |   | September 30, 2011 |   |   | December 31, 2011 |   |   | Total |   |
| Annual Maturities               |   | $                                          | 778,874    |   |          | $      | 679,198 |   |   | $ | 732,765 |   |   | $ | 954,809 |   |   | $ | 3,145,646 |   |
| Mortgage Debt - Fixed Rate 1    |   |                                       | 18,215,433 |   |          |   | — |   |   |   | 1,439,946 |   |   |   | — |   |   |   | 19,655,379 |   |
| Mortgage Debt - Variable Rate 2 |   |                                       | 3,452,415  |   |          |   | 3,733,116 |   |   |   | — |   |   |   | 40,417,866 |   |   |   | 47,603,397 |   |
| Construction Loans 3            |   |                                       | 13,549,200 |   |          |   | 4,725,000 |   |   |   | — |   |   |   | 24,151,339 |   |   |   | 42,425,539 |   |
| Corporate Debt 4                |   |                                       | —    |   |          |   | — |   |   |   | 55,000,000 |   |   |   | — |   |   |   | 55,000,000 |   |
| Total                           |   | $                                          | 35,995,922 |   |          | $      | 9,137,314 |   |   | $ | 57,172,711 |   |   | $ | 65,524,014 |   |   | $ | 167,829,961 |   |

| ____________________ |
|----------------------|
| 1                    | None of the $19.7 million of fixed rate mortgage debt maturing in 2011 has automatic extensions.  However, we are pursuing other financing alternatives to enable us to repay, refinance or extend the maturity dates of these loans.  |
|                 |   |
| 2                    | Of the $47.6 million of variable rate mortgage debt maturing in 2011, $20.8 million related to Gateway Shopping Center has an automatic extension of one year, subject to certain customary conditions.  We intend to extend the maturity date of this $20.8 million, and we currently believe that all of the conditions necessary for such extension will be met. With respect to the remaining $26.8 million, we are pursuing other financing alternatives to enable us to repay, refinance or extend the maturity dates of these loans.  |
|                 |   |
| 3                    | Of the $42.4 million of construction loans maturing in 2011, $24.2 million related to Eddy Street Commons has two automatic one-year extensions, subject to certain customary conditions. We intend to extend the maturity date of this $24.2 million, and we currently believe that all of the conditions necessary for such extension will be met. With respect to the remaining $18.2 million, we are pursuing other financing alternatives to enable us to repay, refinance or extend the maturity dates of these loans. |
|                 |   |
| 4                    | See page 28 for a discussion of our plans regarding our $55 million Term Loan. |

----

Table of Contents

----

Table of Contents

| 2010                 |   | $      | 810,471     |
|----------------------|--------|--------|-------------|
| 20111                |   |   | 167,829,961 |
| 2012                 |   |   | 174,051,792 |
| 2013                 |   |   | 91,368,620  |
| 20142                |   |   | 38,711,972  |
| Thereafter           |   |   | 212,606,785 |
|                 |   |   | 685,379,601 |
| Unamortized Premiums |   |   | 654,626     |
| Total                |   | $      | 686,034,227 |

| ____________________ |
|----------------------|
| 1                    | Includes our $13.5 million share of the Parkside Town Commons construction loan. |
|                 |   |
| 2                    | Includes our $3.5 million share of the Eddy Street Commons Limited Service Hotel construction loan. |

----

Table of Contents

----

Table of Contents

|                                                                                                                                  | Three Months Ended September 30, |   |       | Nine Months Ended September 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|--------|------------|--------------------------------------|--------|
|                                                                                                                                  | 2010                             |   |       | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Consolidated net loss1                                                                                                                |                             | $      | (2,644,975 | )                                    |   | $ | (3,275,627 | ) |   | $ | (8,326,272 | ) |   | $ | (2,084,262 | ) |
| Less non-cash gain from consolidation of subsidiary, net of  noncontrolling interests                                       |                             |   | —    |                                 |   |   | (980,926 | ) |   |   | — |   |   |   | (980,926 | ) |
| Less net income attributable to noncontrolling interests in  properties                                                |                             |   | (42,182    | )                                    |   |   | (695,655 | ) |   |   | (96,708 | ) |   |   | (742,130 | ) |
| Add depreciation and amortization of consolidated entities,  net of noncontrolling interests                                |                             |   | 10,359,890 |                                 |   |   | 7,724,160 |   |   |   | 30,687,142 |   |   |   | 23,693,084 |   |
| Add depreciation and amortization of unconsolidated entities                                                                          |                             |   | 124,077    |                                 |   |   | 52,797 |   |   |   | 165,436 |   |   |   | 157,623 |   |
| Funds From Operations of the Operating Partnership2                                                                                   |                             |   | 7,796,810  |                                 |   |   | 2,824,749 |   |   |   | 22,429,598 |   |   |   | 20,043,389 |   |
| Less redeemable noncontrolling interests in Funds From  Operations                                                          |                             |   | (850,813   | )                                    |   |   | (319,197 | ) |   |   | (2,489,685 | ) |   |   | (3,173,320 | ) |
| Funds From Operations allocable to the Company2                                                                                       |                             | $      | 6,945,997  |                                 |   | $ | 2,505,552 |   |   | $ | 19,939,913 |   |   | $ | 16,870,069 |   |
|                                                                                                                                  |                             |   |       |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic FFO per share of the Operating Partnership                                                                                      |                             | $      | 0.11       |                                 |   | $ | 0.04 |   |   | $ | 0.32 |   |   | $ | 0.35 |   |
| Diluted FFO per share of the Operating Partnership                                                                                    |                             | $      | 0.11       |                                 |   | $ | 0.04 |   |   | $ | 0.31 |   |   | $ | 0.35 |   |
| Basic FFO per share of the Operating Partnership  (excluding non-cash loss on impairment of  real estate asset)   |                             | $      | 0.11       |                                 |   | $ | 0.12 |   |   | $ | 0.32 |   |   | $ | 0.45 |   |
| Diluted FFO per share of the Operating Partnership  (excluding non-cash loss on impairment of  real estate asset) |                             | $      | 0.11       |                                 |   | $ | 0.12 |   |   | $ | 0.31 |   |   | $ | 0.45 |   |
|                                                                                                                                  |                             |   |       |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average Common Shares outstanding                                                                                      |                             |   | 63,288,181 |                                 |   |   | 62,980,447 |   |   |   | 63,206,901 |   |   |   | 48,489,799 |   |
| Diluted weighted average Common Shares outstanding                                                                                    |                             |   | 63,522,229 |                                 |   |   | 63,090,887 |   |   |   | 63,439,031 |   |   |   | 48,575,947 |   |
| Basic weighted average Common Shares and Units  outstanding                                                                 |                             |   | 71,190,157 |                                 |   |   | 71,028,373 |   |   |   | 71,154,942 |   |   |   | 56,540,744 |   |
| Diluted weighted average Common Shares and Units  outstanding                                                               |                             |   | 71,424,206 |                                 |   |   | 71,138,814 |   |   |   | 71,387,071 |   |   |   | 56,626,892 |   |

| ____________________ |
|----------------------|
| 1                    | Includes a non-cash impairment loss on a real estate asset of $5,384,747 for the three and nine months ended September 30, 2009. |
|                 |   |
| 2                    | “Funds From Operations of the Operating Partnership” measures 100% of the operating performance of the Operating Partnership’s real estate properties and construction and service subsidiaries in which the Company owns an interest. “Funds From Operations allocable to the Company” reflects a reduction for the redeemable noncontrolling weighted average diluted interest in the Operating Partnership. |

----

Table of Contents

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
|---------|------------------------------------------------------------|

| Item 4. | Controls and Procedures |
|---------|-------------------------|

----

Table of Contents

Part II.

| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|---------------|--------------|

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|---------|-------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

| Item 4. | Removed and Reserved |
|---------|----------------------|

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits |
|---------|----------|

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                                                                                     |   | Location       |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
| 10.1        |   | Credit Agreement, dated as of February 20, 2007, by and among Kite Realty Group, L.P., the Company, KeyBank National Association, as Administrative Agent, Wachovia Bank, National Association as Syndication Agent, LaSalle Bank National Association and Bank of America, N.A. as Co-Documentation Agents and the other lenders party thereto |   | Filed herewith |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
| 10.2        |   | Term Loan Agreement, dated July 15, 2008, by and among Kite Realty Group, L.P., Kite Realty Group Trust, KeyBank National Association, as Administrative Agent and Lender, KeyBanc Capital Markets, as Lead Arranger, and the other lenders party thereto                                                                                       |   | Filed herewith |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
| 31.1        |   | Certification of principal executive officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                  |   | Filed herewith |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
| 31.2        |   | Certification of principal financial officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                  |   | Filed herewith |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
| 32.1        |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                   |   | Filed herewith |

----

Table of Contents

SIGN

|             | KITE REALTY GROUP TRUST |
|------------------|-------------------------|
|             |                    |   |
| November 9, 2010 | By:                     | /s/ John A. Kite |
| (Date)           |                    | John A. Kite |
|             |                    | Chairman and Chief Executive Officer |
|             |                    | (Principal Executive Officer) |
|             |                    |   |
|             |                    |   |
| November 9, 2010 | By:                     | /s/ Daniel R. Sink |
| (Date)           |                    | Daniel R. Sink |
|             |                    | Chief Financial Officer |
|             |                    | (Principal Financial Officer and |
|             |                    | Principal Accounting Officer) |

----

Table of Contents

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                                                                                     |   | Location       |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
| 10.1        |   | Credit Agreement, dated as of February 20, 2007, by and among Kite Realty Group, L.P., the Company, KeyBank National Association, as Administrative Agent, Wachovia Bank, National Association as Syndication Agent, LaSalle Bank National Association and Bank of America, N.A. as Co-Documentation Agents and the other lenders party thereto |   | Filed herewith |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
| 10. 2       |   | Term Loan Agreement, dated July 15, 2008, by and among Kite Realty Group, L.P., Kite Realty Group Trust, KeyBank National Association, as Administrative Agent and Lender, KeyBanc Capital Markets, as Lead Arranger, and the other lenders party thereto                                                                                       |   | Filed herewith |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
| 31.1        |   | Certification of principal executive officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                  |   | Filed herewith |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
| 31.2        |   | Certification of principal financial officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                  |   | Filed herewith |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
| 32.1        |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                   |   | Filed herewith |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |
|        |   |                                                                                                                                                                                                                                                                                                                                            |   |           |

----