| (Mark One)                                                                                                                                                           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| x                                                                                                                                                                    | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                                                                                                                                                 |   |
| For the quarterly period ended March 31, 2011                                                                                                                        |
|                                                                                                                                                                 |   |
| 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   x | 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 |
|-------------------|------------------|

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|       |                                                                                        |                                                                                           | Page   |
|------------|---------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|--------|
| Part I.    | FINANCIAL INFORMATION                                                                       |                                                                                           |
|       |                                                                                        |                                                                                           |   |
| Item 1.    | Consolidated Financial Statements (Unaudited)                                               |                                                                                           |
|       |                                                                                        |                                                                                           |   |
|       |                                                                                        | Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010                    | 3      |
|       |                                                                                        |                                                                                           |   |
|       |                                                                                        | Consolidated Statements of Operations for the Three Months Ended March 31, 2011 and 2010       | 4      |
|       |                                                                                        |                                                                                           |   |
|       |                                                                                        | Consolidated Statement of Shareholders’ Equity for the Three Months Ended March 31, 2011 | 5      |
|       |                                                                                        |                                                                                           |   |
|       |                                                                                        | Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2011 and 2010       | 6      |
|       |                                                                                        |                                                                                           |   |
|       |                                                                                        | Notes to Consolidated Financial Statements                                                     | 7      |
|       |                                                                                        |                                                                                           |
|       | Cautionary Note About Forward-Looking Statements                                       | 15                                                                                             |
|       |                                                                                        |                                                                                           |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16                                                                                             |
|       |                                                                                        |                                                                                           |   |
| Item 3.    | Quantitative and Qualitative Disclosure about Market Risk                                   | 26                                                                                             |
|       |                                                                                        |                                                                                           |   |
| Item 4.    | Controls and Procedures                                                                     | 26                                                                                             |
|       |                                                                                        |                                                                                           |   |
| Part II.   | OTHER INFORMATION                                                                           |                                                                                           |
|       |                                                                                        |                                                                                           |   |
| Item 1.    | Legal Proceedings                                                                           | 27                                                                                             |
|       |                                                                                        |                                                                                           |   |
| Item 1A.   | Risk Factors                                                                                | 27                                                                                             |
|       |                                                                                        |                                                                                           |   |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 27                                                                                             |
|       |                                                                                        |                                                                                           |   |
| Item 3.    | Defaults upon Senior Securities                                                             | 27                                                                                             |
|       |                                                                                        |                                                                                           |   |
| Item 4.    | Removed and Reserved                                                                        | 27                                                                                             |
|       |                                                                                        |                                                                                           |   |
| Item 5.    | Other Information                                                                           | 27                                                                                             |
|       |                                                                                        |                                                                                           |   |
| Item 6.    | Exhibits                                                                                    | 27                                                                                             |
|       |                                                                                        |                                                                                           |   |
| SIGNATURES | 28                                                                                          |

----

|                                                                                                                                                                                                                                                                                         |   | March 31, |          |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                         |   | 2011      |          |   | 2010         |   |
| Assets:                                                                                                                                                                                                                                                                                      |   |      |          |   |         |   |
| Investment properties, at cost:                                                                                                                                                                                                                                                              |   |      |          |   |         |   |
| Land                                                                                                                                                                                                                                                                                         |   | $         | 229,454,821   |   |         | $      | 228,707,073 |   |
| Land held for development                                                                                                                                                                                                                                                                    |   |      | 27,386,474    |   |         |   | 27,384,631 |   |
| Buildings and improvements                                                                                                                                                                                                                                                                   |   |      | 790,204,170   |   |         |   | 780,038,034 |   |
| Furniture, equipment and other                                                                                                                                                                                                                                                               |   |      | 5,234,399     |   |         |   | 5,166,303 |   |
| Construction in progress                                                                                                                                                                                                                                                                     |   |      | 163,586,816   |   |         |   | 158,636,747 |   |
|                                                                                                                                                                                                                                                                                         |   |      | 1,215,866,680 |   |         |   | 1,199,932,788 |   |
|       Less: accumulated depreciation                                                                                                                                                                                                                           |   |      | (159,997,199  | )      |         |   | (152,083,936 | ) |
|       Net real estate investments                                                                                                                                                                                                                              |   |      | 1,055,869,481 |   |         |   | 1,047,848,852 |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                    |   |      | 8,136,797     |   |         |   | 15,394,528 |   |
| Tenant receivables, including accrued straight-line rent of $9,547,176 and  $9,113,712, respectively, net of allowance for uncollectible accounts                                                                                                                                  |   |      | 17,884,508    |   |         |   | 18,204,215 |   |
| Other receivables                                                                                                                                                                                                                                                                            |   |      | 4,194,074     |   |         |   | 5,484,277 |   |
| Investments in unconsolidated entities, at equity                                                                                                                                                                                                                                            |   |      | 16,867,808    |   |         |   | 11,193,113 |   |
| Escrow deposits                                                                                                                                                                                                                                                                              |   |      | 10,357,558    |   |         |   | 8,793,968 |   |
| Deferred costs, net                                                                                                                                                                                                                                                                          |   |      | 25,260,550    |   |         |   | 24,207,046 |   |
| Prepaid and other assets                                                                                                                                                                                                                                                                     |   |      | 1,924,312     |   |         |   | 1,656,746 |   |
| Total Assets                                                                                                                                                                                                                                                                                 |   | $         | 1,140,495,088 |   |         | $      | 1,132,782,745 |   |
|                                                                                                                                                                                                                                                                                         |   |      |          |   |         |   |   |   |
| Liabilities and Equity:                                                                                                                                                                                                                                                                      |   |      |          |   |         |   |   |   |
| Mortgage and other indebtedness                                                                                                                                                                                                                                                              |   | $         | 627,300,804   |   |         | $      | 610,926,613 |   |
| Accounts payable and accrued expenses                                                                                                                                                                                                                                                        |   |      | 32,703,307    |   |         |   | 32,362,917 |   |
| Deferred revenue and other liabilities                                                                                                                                                                                                                                                       |   |      | 14,287,472    |   |         |   | 15,399,002 |   |
| Total Liabilities                                                                                                                                                                                                                                                                            |   |      | 674,291,583   |   |         |   | 658,688,532 |   |
| Commitments and contingencies                                                                                                                                                                                                                                                                |   |      |          |   |         |   |   |   |
| Redeemable noncontrolling interests in Operating Partnership                                                                                                                                                                                                                                 |   |      | 43,582,755    |   |         |   | 44,115,028 |   |
| Equity:                                                                                                                                                                                                                                                                                      |   |      |          |   |         |   |   |   |
|    Kite Realty Group Trust Shareholders' Equity:                                                                                                                                                                                                                              |   |      |          |   |         |   |   |   |
|       Preferred Shares, $.01 par value, 40,000,000 shares authorized, 2,800,000      and 2,800,000 shares issued and outstanding at March 31, 2011 and      December 31, 2010, respectively        |   |      | 70,000,000    |   |         |   | 70,000,000 |   |
|       Common Shares, $.01 par value, 200,000,000 shares authorized,      63,558,296 shares and 63,342,219 shares issued and outstanding at      March 31, 2011 and December 31, 2010, respectively |   |      | 635,583       |   |         |   | 633,422 |   |
|       Additional paid in capital and other                                                                                                                                                                                                                     |   |      | 448,794,513   |   |         |   | 448,779,180 |   |
|       Accumulated other comprehensive loss                                                                                                                                                                                                                     |   |      | (1,708,751    | )      |         |   | (2,900,100 | ) |
|       Accumulated deficit                                                                                                                                                                                                                                      |   |      | (99,412,067   | )      |         |   | (93,447,581 | ) |
|    Total Kite Realty Group Trust Shareholders' Equity                                                                                                                                                                                                                         |   |      | 418,309,278   |   |         |   | 423,064,921 |   |
|    Noncontrolling Interests                                                                                                                                                                                                                                                   |   |      | 4,311,472     |   |         |   | 6,914,264 |   |
| Total Equity                                                                                                                                                                                                                                                                                 |   |      | 422,620,750   |   |         |   | 429,979,185 |   |
| Total Liabilities and Equity                                                                                                                                                                                                                                                                 |   | $         | 1,140,495,088 |   |         | $      | 1,132,782,745 |   |

----

|                                                                                                                                                        |  Three Months Ended March 31, |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|
|                                                                                                                                                        |                               |  2011    |   |   | 2010 |   |
| Revenue:                                                                                                                                                    |                               |   |   |   |   |   |
|   Minimum rent                                                                                                                                    |                               | $ | 18,367,242 |   |   | $ | 17,735,211 |   |
|   Tenant reimbursements                                                                                                                           |                               |   | 5,179,210 |   |   |   | 4,841,261 |   |
|   Other property related revenue                                                                                                                  |                               |   | 888,532 |   |   |   | 1,099,812 |   |
|   Construction and service fee revenue                                                                                                            |                               |   | 10,038 |   |   |   | 1,879,350 |   |
| Total revenue                                                                                                                                               |                               |   | 24,445,022 |   |   |   | 25,555,634 |   |
| Expenses:                                                                                                                                                   |                               |   |   |   |   |   |   |   |
|   Property operating                                                                                                                              |                               |   | 4,910,012 |   |   |   | 4,574,352 |   |
|   Real estate taxes                                                                                                                               |                               |   | 3,312,944 |   |   |   | 3,376,314 |   |
|   Cost of construction and services                                                                                                               |                               |   | 49,913 |   |   |   | 1,758,318 |   |
|   General, administrative, and other                                                                                                              |                               |   | 1,848,452 |   |   |   | 1,375,970 |   |
|   Depreciation and amortization                                                                                                                   |                               |   | 9,176,873 |   |   |   | 8,544,855 |   |
| Total expenses                                                                                                                                              |                               |   | 19,298,194 |   |   |   | 19,629,809 |   |
| Operating income                                                                                                                                            |                               |   | 5,146,828 |   |   |   | 5,925,825 |   |
|   Interest expense                                                                                                                                |                               |   | (5,901,625 | ) |   |   | (7,096,863 | ) |
|   Income tax benefit (expense) of taxable REIT subsidiary                                                                                         |                               |   | 16,073 |   |   |   | (25,836 | ) |
|   Loss from unconsolidated entities                                                                                                               |                               |   | (87,625 | ) |   |   | — |   |
|   Other income                                                                                                                                    |                               |   | 49,038 |   |   |   | 65,750 |   |
| Consolidated net loss                                                                                                                                       |                               |   | (777,311 | ) |   |   | (1,131,124 | ) |
| Net loss attributable to noncontrolling interests                                                                                                           |                               |   | 70,494 |   |   |   | 56,444 |   |
| Net loss attributable to Kite Realty Group Trust                                                                                                            |                               | $ | (706,817 | ) |   | $ | (1,074,680 | ) |
| Dividends on preferred shares                                                                                                                               |                               |   | (1,443,750 | ) |   |   | — |   |
| Net loss attributable to common shareholders                                                                                                                |                               | $ | (2,150,567 | ) |   | $ | (1,074,680 | ) |
|                                                                                                                                                        |                               |   |   |   |   |   |   |   |
| Net loss per common share attributable to Kite Realty Group        Trust common shareholders - basic & diluted: |                               | $ | (0.03 | ) |   | $ | (0.02 | ) |
|                                                                                                                                                        |                               |   |   |   |   |   |   |   |
| Weighted average common shares outstanding - basic                                                                                                          |                               |   | 63,448,048 |   |   |   | 63,121,498 |   |
| Weighted average common shares outstanding - diluted                                                                                                        |                               |   | 63,448,048 |   |   |   | 63,121,498 |   |
|                                                                                                                                                        |                               |   |   |   |   |   |   |   |
| Dividends declared per common share                                                                                                                         |                               | $ | 0.0600 |   |   | $ | 0.0600 |   |
|                                                                                                                                                        |                               |   |   |   |   |   |   |   |
| Consolidated net loss                                                                                                                                       |                               | $ | (777,311 | ) |   | $ | (1,131,124 | ) |
| Other comprehensive income                                                                                                                                  |                               |   | 1,339,980 |   |   |   | 44,338 |   |
| Comprehensive income (loss)                                                                                                                                 |                               |   | 562,669 |   |   |   | (1,086,786 | ) |
| Comprehensive income (loss) attributable to noncontrolling interests                                                                                        |                               |   | (78,137 | ) |   |   | 51,256 |   |
| Comprehensive income (loss) attributable to Kite Realty Group Trust                                                                                         |                               | $ | 484,532 |   |   | $ | (1,035,530 | ) |

----

Kite Realty Group Trust

|                                                                                            |   |             |      |   |          |   |       |    |   |   |          |   |   |             |    |   |  Accumulated |   |        |    |   |   |       |   |
|-------------------------------------------------------------------------------------------------|--------|------------------|-----------|--------|---------------|--------|------------|---------|--------|--------|---------------|--------|--------|------------------|---------|--------|-------------------|--------|-------------|---------|--------|--------|------------|--------|
|                                                                                            |   |             |      |   |          |   |       |    |   |   |          |   |   |  Additional |    |   | Other             |   |        |    |   |   |       |   |
|                                                                                            |   | Preferred Shares |      |   | Common Shares |   |       | Paid-in |   |   | Comprehensive |   |   | Accumulated      |    |   |              |   |
|                                                                                            |   | Shares           |      |   | Amount        |   |       | Shares  |   |   | Amount        |   |   | Capital          |    |   | Loss              |   |        | Deficit |   |   | Total      |   |
|                                                                                            |   |             |      |   |          |   |       |    |   |   |          |   |   |             |    |   |              |   |        |    |   |   |       |   |
| Balances, December 31, 2010                                                                     |   |             | 2,800,000 |   |          | $      | 70,000,000 |    |   |   | 63,342,219    |   |   | $                | 633,422 |   |              | $      | 448,779,180 |    |   | $      | (2,900,100 | )      |   | $ | (93,447,581 | ) |   | $ | 423,064,921 |   |
| Stock compensation activity                                                                     |   |             | —   |   |          |   | —    |    |   |   | 210,880       |   |   |             | 2,109   |   |              |   | 147,878     |    |   |   | —    |   |   |   | — |   |   |   | 149,987 |   |
| Proceeds from employee share  purchase plan                                           |   |             | —   |   |          |   | —    |    |   |   | 1,197         |   |   |             | 12      |   |              |   | 6,404       |    |   |   | —    |   |   |   | — |   |   |   | 6,416 |   |
| Other comprehensive income                                                                      |   |             | —   |   |          |   | —    |    |   |   | —       |   |   |             | — |   |              |   | —     |    |   |   | 1,191,349  |   |   |   | — |   |   |   | 1,191,349 |   |
| Acquisition of noncontrolling  interest in The Centre                                 |   |             | —   |   |          |   | —    |    |   |   | —       |   |   |             | — |   |              |   | (24,337     | )       |   |   | —    |   |   |   | — |   |   |   | (24,337 | ) |
| Offering costs                                                                                  |   |             | —   |   |          |   | —    |    |   |   | —       |   |   |             | — |   |              |   | (237,127    | )       |   |   | —    |   |   |   | — |   |   |   | (237,127 | ) |
| Distributions declared to common  shareholders                                        |   |             | —   |   |          |   | —    |    |   |   | —       |   |   |             | — |   |              |   | —     |    |   |   | —    |   |   |   | (3,813,919 | ) |   |   | (3,813,919 | ) |
| Distributions to preferred shareholders                                                    |   |             |      |   |          |   |       |    |   |   |          |   |   |             |    |   |              |   |        |    |   |   |       |   |   |   | (1,443,750 | ) |   |   | (1,443,750 | ) |
| Net loss attributable to Kite Realty Group Trust                                           |   |             | —   |   |          |   | —    |    |   |   | —       |   |   |             | — |   |              |   | —     |    |   |   | —    |   |   |   | (706,817 | ) |   |   | (706,817 | ) |
| Exchange of redeemable  noncontrolling interests for  common stock          |   |             | —   |   |          |   | —    |    |   |   | 4,000         |   |   |             | 40      |   |              |   | 51,960      |    |   |   | —    |   |   |   | — |   |   |   | 52,000 |   |
| Adjustment to redeemable  noncontrolling interests -  Operating Partnership |   |             | —   |   |          |   | —    |    |   |   | —       |   |   |             | — |   |              |   | 70,555      |    |   |   | —    |   |   |   | — |   |   |   | 70,555 |   |
| Balances, March 31, 2011                                                                        |   |             | 2,800,000 |   |          | $      | 70,000,000 |    |   |   | 63,558,296    |   |   | $                | 635,583 |   |              | $      | 448,794,513 |    |   | $      | (1,708,751 | )      |   | $ | (99,412,067 | ) |   | $ | 418,309,278 |   |

----

|                                                                                         |  Three Months Ended March 31, |
|----------------------------------------------------------------------------------------------|------------------------------------|
|                                                                                         |                               |   2011 |   |   |   2010 |   |
| Cash flows from operating activities:                                                        |                               |   |   |   |   |   |
| Consolidated net loss                                                                        |                               | $ | (777,311 | ) |   | $ | (1,131,124 | ) |
| Adjustments to reconcile consolidated net loss to net cash provided by operating activities: |                               |   |   |   |   |   |   |   |
| Equity in loss of unconsolidated entities                                                    |                               |   | 87,625 |   |   |   | — |   |
| Straight-line rent                                                                           |                               |   | (433,284 | ) |   |   | (83,315 | ) |
| Depreciation and amortization                                                                |                               |   | 9,465,260 |   |   |   | 8,941,732 |   |
| Provision for credit losses                                                                  |                               |   | 172,764 |   |   |   | 293,760 |   |
| Compensation expense for equity awards                                                       |                               |   | 82,332 |   |   |   | 130,281 |   |
| Amortization of debt fair value adjustment                                                   |                               |   | (107,714 | ) |   |   | (107,715 | ) |
| Amortization of in-place lease liabilities                                                   |                               |   | (632,535 | ) |   |   | (767,131 | ) |
| Changes in assets and liabilities:                                                           |                               |   |   |   |   |   |   |   |
| Tenant receivables                                                                           |                               |   | 580,227 |   |   |   | 1,391,795 |   |
| Deferred costs and other assets                                                              |                               |   | (3,051,745 | ) |   |   | (2,814,379 | ) |
| Accounts payable, accrued expenses, deferred revenue and other liabilities                   |                               |   | 640,446 |   |   |   | (386,113 | ) |
| Net cash provided by operating activities                                                    |                               |   | 6,026,065 |   |   |   | 5,467,791 |   |
| Cash flows from investing activities:                                                        |                               |   |   |   |   |   |   |   |
| Acquisitions of interests in properties and capital expenditures, net                        |                               |   | (16,115,003 | ) |   |   | (10,426,976 | ) |
| Change in construction payables                                                              |                               |   | 443,620 |   |   |   | 561,922 |   |
| Note receivable from joint venture partner                                                   |                               |   | 125,780 |   |   |   | — |   |
| Contributions to unconsolidated entities                                                     |                               |   | (5,762,321 | ) |   |   | — |   |
| Net cash used in investing activities                                                        |                               |   | (21,307,924 | ) |   |   | (9,865,054 | ) |
| Cash flows from financing activities:                                                        |                               |   |   |   |   |   |   |   |
| Offering proceeds, net of issuance costs                                                     |                               |   | (230,711 | ) |   |   | 10,939 |   |
| Acquisition of noncontrolling interest in The Centre                                         |                               |   | (1,690,470 | ) |   |   | — |   |
| Loan proceeds                                                                                |                               |   | 44,537,065 |   |   |   | 12,095,144 |   |
| Loan transaction costs                                                                       |                               |   | (525,860 | ) |   |   | (167,463 | ) |
| Loan payments                                                                                |                               |   | (28,055,160 | ) |   |   | (8,531,645 | ) |
| Distributions paid – common shareholders                                               |                               |   | (3,800,638 | ) |   |   | (3,783,891 | ) |
| Distributions paid - preferred shareholders                                                  |                               |   | (1,363,542 | ) |   |   | — |   |
| Distributions paid – redeemable noncontrolling interests                               |                               |   | (471,510 | ) |   |   | (478,710 | ) |
| Distributions to noncontrolling interests in properties                                      |                               |   | (375,046 | ) |   |   | (131,938 | ) |
| Net cash provided by (used in) financing activities                                          |                               |   | 8,024,128 |   |   |   | (987,564 | ) |
| Net change in cash and cash equivalents                                                      |                               |   | (7,257,731 | ) |   |   | (5,384,827 | ) |
| Cash and cash equivalents, beginning of period                                               |                               |   | 15,394,528 |   |   |   | 19,958,376 |   |
| Cash and cash equivalents, end of period                                                     |                               | $ | 8,136,797 |   |   | $ | 14,573,549 |   |
|                                                                                         |                               |   |   |   |   |   |   |   |
|                                                                                         |                               |   |   |   |   |   |   |   |
| Non-cash investing and financing activities                                                  |                               |   |   |   |   |   |   |   |
| Settlement of loan in acquisition of noncontrolling interest in The Centre                   |                               |   | 578,201 |   |   |   | — |   |

----

|   | · | 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. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                       |   | 2011   |       |   | 2010   |   |
|------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Noncontrolling interests balance January 1                                                                 |   | $      | 6,914,264  |   |   | $      | 7,371,185 |   |
| Net income allocable to noncontrolling interests,  excluding redeemable noncontrolling interests |   |   | 16,586     |   |   |   | 79,088 |   |
| Acquisition of noncontrolling interest in The Centre                                                       |   |   | (2,244,332 | )      |   |   | — |   |
| Distributions to noncontrolling interests                                                                  |   |   | (375,046   | )      |   |   | (131,938 | ) |
| Other                                                                                                      |   |   | —    |   |   |   | (59,214 | ) |
| Noncontrolling interests balance at March 31                                                               |   | $      | 4,311,472  |   |   | $      | 7,259,121 |   |

----

|                                                                                     |   | 2011   |       |   | 2010   |   |
|------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Redeemable noncontrolling interests balance January 1                                    |   | $      | 44,115,028 |   |   | $      | 47,307,115 |   |
| Net loss allocable to redeemable noncontrolling interests                                |   |   | (87,080    | )      |   |   | (135,532 | ) |
| Accrued distributions to redeemable noncontrolling interests                             |   |   | (471,270   | )      |   |   | (478,410 | ) |
| Other comprehensive income allocable to redeemable  noncontrolling interests 1 |   |   | 148,631    |   |   |   | 5,188 |   |
| Exchange of redeemable noncontrolling interest for  common stock               |   |   | (52,000    | )      |   |   | (65,000 | ) |
| Adjustment to redeemable noncontrolling interests -  operating partnership     |   |   | (70,555    | )      |   |   | 108,721 |   |
| Redeemable noncontrolling interests balance at March 31                                  |   | $      | 43,582,754 |   |   | $      | 46,742,082 |   |

| ____________________ |
|----------------------|
| 1                    | Represents the noncontrolling interests’ share of the changes in the fair value of derivative instruments accounted for as cash flow hedges (see Note 6). |

|                                                                          |   | 2011   |     |   | 2010   |   |
|-------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Accumulated comprehensive loss balance at January 1                           |   | $      | (359,798 | )      |   | $      | (731,835 | ) |
| Other comprehensive income allocable to noncontrolling  interests 1 |   |   | 148,631  |   |   |   | 5,188 |   |
| Accumulated comprehensive loss balance at March 31                            |   | $      | (211,167 | )      |   | $      | (726,647 | ) |

| ____________________ |
|----------------------|
| 1                    | Represents the noncontrolling interests’ share of the changes in the fair value of derivative instruments accounted for as cash flow hedges (see Note 6). |

|                                                                                           |  Three Months Ended March 31, |
|------------------------------------------------------------------------------------------------|------------------------------------|
|                                                                                           |                               | 2011 |   |   | 2010 |   |
| Company’s weighted average basic interest in  Operating Partnership            |                               |   | 89.0 | % |   |   | 88.8 | % |
| Redeemable noncontrolling weighted average basic  interests in Operating Partnership |                               |   | 11.0 | % |   |   | 11.2 | % |

----

|                                                                              |   |  Balance at |        |
|-----------------------------------------------------------------------------------|--------|------------------|-------------|
|                                                                              |   | March 31, 2011   |        |   | December 31, 2010 |   |
| Line of credit                                                                    |   | $                | 112,500,000 |   |   | $ | 122,300,000 |   |
| Notes payable secured by properties under construction -  variable rate |   |             | 89,071,836  |   |   |   | 88,424,770 |   |
| Mortgage notes payable - fixed rate                                               |   |             | 296,386,175 |   |   |   | 277,560,128 |   |
| Mortgage notes payable - variable rate                                            |   |             | 128,903,596 |   |   |   | 122,094,803 |   |
| Net premiums on acquired debt                                                     |   |             | 439,197     |   |   |   | 546,912 |   |
| Total mortgage and other indebtedness                                             |   | $                | 627,300,804 |   |   | $ | 610,926,613 |   |

|                                                                              |   | Amount |         |   | Weighted Average Maturity (Years) |   |   | Weighted Average Interest Rate |   |   | Percentage of Total |   |
|-----------------------------------------------------------------------------------|--------|--------|--------------|--------|-----------------------------------|--------|--------|--------------------------------|--------|--------|---------------------|--------|
| Fixed rate debt                                                                   |   | $      | 296,386,175  |   |                              |   | 4.9    |                           |   |   | 5.98                | %      |   |   | 47 | % |
| Floating rate debt (hedged)                                                       |   |   | 144,310,926  |   |                              |   | 1.1    |                           |   |   | 5.00                | %      |   |   | 23 | % |
|   Total fixed rate debt, considering hedges                             |   |   | 440,697,101  |   |                              |   | 3.7    |                           |   |   | 5.66                | %      |   |   | 70 | % |
| Notes payable secured by properties under construction -  variable rate |   |   | 89,071,836   |   |                              |   | 2.0    |                           |   |   | 3.59                | %      |   |   | 14 | % |
| Other variable rate debt                                                          |   |   | 241,403,596  |   |                              |   | 1.4    |                           |   |   | 2.34                | %      |   |   | 39 | % |
| Floating rate debt (hedged)                                                       |   |   | (144,310,926 | )      |                              |   | -1.1   |                           |   |   | -2.59               | %      |   |   | -23 | % |
|   Total variable rate debt, considering hedges                          |   |   | 186,164,506  |   |                              |   | 1.9    |                           |   |   | 2.74                | %      |   |   | 30 | % |
| Net premiums on acquired debt                                                     |   |   | 439,197      |   |                              |   | N/A    |                           |   |   | N/A                 |   |   |   | N/A |   |
|   Total debt                                                            |   | $      | 627,300,804  |   |                              |   | 3.1    |                           |   |   | 4.79                | %      |   |   | 100 | % |

----

| ·   | Draws of $15.0 million were made on the unsecured revolving credit facility.  These draws were utilized to fund the acquisition of Oleander Point in Wilmington, North Carolina, the acquisition of our partners’ noncontrolling interest in The Centre in Indianapolis, Indiana, the contribution to Parkside Town Commons in Raleigh, North Carolina, redevelopment costs, and tenant improvement and leasing costs; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company issued $7.8 million of variable rate debt with a 30-month term and which carries a variable interest rate of LIBOR plus 300 basis points.  The loan is secured by land held for development at the intersection of Highways 951 & 41 in Naples, Florida.  The net proceeds were utilized to pay down the Company’s unsecured revolving credit facility; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company issued $21.0 million of fixed rate debt with a 10-year term and an interest rate of 5.77%.  The loan is secured by the International Speedway Square property in Daytona, Florida.  The net proceeds were utilized to pay down the Company’s unsecured revolving credit facility; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company made a paydown of $1.5 million to retire The Corner property fixed rate loan; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | The maturity date of the variable rate loan on the Indiana State Motor Pool property was extended to February 2014 at an interest rate of LIBOR plus 325 basis points; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company made scheduled principal payments totaling $1.2 million. |
|--------------------|----------------------------------------------------------------------|

----

----

|                                                                           | Three months ended March 31, |
|--------------------------------------------------------------------------------|------------------------------|
|                                                                           |                         | 2011 |   |   | 2010 |   |
| Net loss attributable to Kite Realty  Group Trust                    |                         | $ | (706,817 | ) |   | $ | (1,074,680 | ) |
| Other comprehensive income allocable to  Kite Realty Group Trust1    |                         |   | 1,191,349 |   |   |   | 39,150 |   |
| Comprehensive income (loss) attributable to Kite  Realty Group Trust |                         | $ | 484,532 |   |   | $ | (1,035,530 | ) |

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

| Three Months Ended March 31, 2010                                                                   |   | Real Estate Operations and Development |          |   | Construction and Advisory Services |   |       | Subtotal |   |   | Intersegment Eliminations |   |   | Total  |        |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------|---------------|--------|------------------------------------|--------|------------|----------|--------|--------|---------------------------|--------|--------|--------|-------------|
| Revenues                                                                                            |   | $                                      | 24,016,851    |   |                               | $      | 3,930,803  |     |   | $      | 27,947,654                |   |   | $      | (2,392,020  | ) |   | $ | 25,555,634 |   |
| Operating expenses, cost of construction and  services, general, administrative and other |   |                                   | 9,483,262     |   |                               |   | 4,064,009  |     |   |   | 13,547,271                |   |   |   | (2,462,317  | ) |   |   | 11,084,954 |   |
| Depreciation and amortization                                                                       |   |                                   | 8,501,877     |   |                               |   | 42,978     |     |   |   | 8,544,855                 |   |   |   | -           |   |   |   | 8,544,855 |   |
| Operating income (loss)                                                                             |   |                                   | 6,031,712     |   |                               |   | (176,184   | )        |   |   | 5,855,528                 |   |   |   | 70,297      |   |   |   | 5,925,825 |   |
| Interest expense                                                                                    |   |                                   | (7,201,759    | )      |                               |   | (51,116    | )        |   |   | (7,252,875                | )      |   |   | 156,012     |   |   |   | (7,096,863 | ) |
| Income tax benefit of taxable REIT subsidiary                                                       |   |                                   | -             |   |                               |   | (25,836    | )        |   |   | (25,836                   | )      |   |   | -           |   |   |   | (25,836 | ) |
| Other income                                                                                        |   |                                   | 221,762       |   |                               |   | -          |     |   |   | 221,762                   |   |   |   | (156,012    | ) |   |   | 65,750 |   |
| Consolidated net loss                                                                               |   |                                   | (948,285      | )      |                               |   | (253,136   | )        |   |   | (1,201,421                | )      |   |   | 70,297      |   |   |   | (1,131,124 | ) |
| Net loss attributable to noncontrolling  interests                                        |   |                                   | 35,968        |   |                               |   | 28,349     |     |   |   | 64,317                    |   |   |   | (7,873      | ) |   |   | 56,444 |   |
| Net loss attributable to Kite Realty  Group Trust                                         |   | $                                      | (912,317      | )      |                               | $      | (224,787   | )        |   | $      | (1,137,104                | )      |   | $      | 62,424      |   |   | $ | (1,074,680 | ) |
| Total assets at March 31, 2010                                                                      |   | $                                      | 1,138,690,302 |   |                               | $      | 21,402,017 |     |   | $      | 1,160,092,319             |   |   | $      | (21,864,477 | ) |   | $ | 1,138,227,842 |   |

----

----

Cautionary Note About Forward-Looking Statements

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

| ·   | 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, 2010, and in our quarterly reports on Form 10-Q. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 2.

----

----

| Property Name                 |   | MSA                |   | Economic Occupancy Date1 |   | Owned GLA |   |
|-------------------------------|--------|--------------------|--------|--------------------------|--------|-----------|--------|
|                          |   |               |   |                     |   |      |   |
| Eddy Street Commons, Phase I2 |   | South Bend, IN     |   | September 2009           |   | 169,921   |   |
| South Elgin Commons2          |   | Chicago, IL        |   | June 2009                |   | 45,000    |   |
| Cobblestone Plaza2            |   | Ft. Lauderdale, FL |   | March 2009               |   | 132,743   |   |

|   |
|--------|
| 1      | Represents the date in which we started receiving rental payments under tenant leases or ground leases at the property or the tenant took possession of the property, whichever was sooner. |
|   |   |
| 2      | Construction of these properties was completed in phases.  The Economic Occupancy Dates indicated for these properties refers to its initial phase. |

| Property Name        |   | MSA                        |   | Transition Date1 |   | Owned GLA |
|----------------------|--------|----------------------------|--------|------------------|--------|-----------|
|                 |   |                       |   |             |   |      |
| Coral Springs Plaza2 |   | Ft. Lauderdale, Florida    |   | March 2009       |   | 45,906    |
| Courthouse Shadows   |   | Naples, Florida            |   | September 2008   |   | 134,867   |
| Four Corner Square   |   | Maple Valley, Washington   |   | September 2008   |   | 44,000    |
| Bolton Plaza         |   | Jacksonville, Florida      |   | June 2008        |   | 172,938   |
| Rivers Edge          |   | Indianapolis, Indiana      |   | June 2008        |   | 152,285   |
| Oleander Point       |   | Wilmington, North Carolina |   | March 2011       |   | 51,888    |
| The Centre           |   | Indianapolis, Indiana      |   | March 2011       |   | 77,455    |

| ____________________ |
|----------------------|
| 1                    | Transition date represents the date the property was transferred from our operating portfolio to our redevelopment projects. |
| 2                    | This property was transitioned to the operating portfolio in the fourth quarter of 2010. |

----

|                                                                                                                              |   | 2011   |       |   | 2010   |   |       | Net change 2010 to 2011 |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|-------------------------|--------|
| Revenue:                                                                                                                          |   |   |       |   |   |   |       |                    |   |
|     Rental income (including tenant reimbursements)                                                           |   | $      | 23,546,452 |   |   | $      | 22,576,472 |                    |   | $ | 969,980 |   |
|     Other property related revenue                                                                            |   |   | 888,532    |   |   |   | 1,099,812  |                    |   |   | (211,280 | ) |
|     Construction and service fee revenue                                                                      |   |   | 10,038     |   |   |   | 1,879,350  |                    |   |   | (1,869,312 | ) |
| Total revenue                                                                                                                     |   |   | 24,445,022 |   |   |   | 25,555,634 |                    |   |   | (1,110,612 | ) |
| Expenses:                                                                                                                         |   |   |       |   |   |   |       |                    |   |   |   |   |
|     Property operating                                                                                        |   |   | 4,910,012  |   |   |   | 4,574,352  |                    |   |   | 335,660 |   |
|     Real estate taxes                                                                                         |   |   | 3,312,944  |   |   |   | 3,376,314  |                    |   |   | (63,370 | ) |
|     Cost of construction and services                                                                         |   |   | 49,913     |   |   |   | 1,758,318  |                    |   |   | (1,708,405 | ) |
|     General, administrative, and other                                                                        |   |   | 1,848,452  |   |   |   | 1,375,970  |                    |   |   | 472,482 |   |
|     Depreciation and amortization                                                                             |   |   | 9,176,873  |   |   |   | 8,544,855  |                    |   |   | 632,018 |   |
| Total Expenses                                                                                                                    |   |   | 19,298,194 |   |   |   | 19,629,809 |                    |   |   | (331,615 | ) |
| Operating income                                                                                                                  |   |   | 5,146,828  |   |   |   | 5,925,825  |                    |   |   | (778,997 | ) |
|     Interest expense                                                                                          |   |   | (5,901,625 | )      |   |   | (7,096,863 | )                       |   |   | 1,195,238 |   |
|     Income tax benefit (expense) of taxable REIT       subsidiary          |   |   | 16,073     |   |   |   | (25,836    | )                       |   |   | 41,909 |   |
|     Loss from unconsolidated entities                                                                         |   |   | (87,625    | )      |   |   | —    |                    |   |   | (87,625 | ) |
|     Other income                                                                                              |   |   | 49,038     |   |   |   | 65,750     |                    |   |   | (16,712 | ) |
| Consolidated net loss                                                                                                             |   |   | (777,311   | )      |   |   | (1,131,124 | )                       |   |   | 353,813 |   |
|     Net loss (income) attributable to noncontrolling        interests |   |   | 70,494     |   |   |   | 56,444     |                    |   |   | 14,050 |   |
| Net loss attributable to Kite Realty Group Trust                                                                                  |   |   | (706,817   | )      |   |   | (1,074,680 | )                       |   |   | 367,863 |   |
| Dividends on preferred shares                                                                                                     |   |   | (1,443,750 | )      |   |   | —    |                    |   |   | (1,443,750 | ) |
| Net loss attributable to common shareholders                                                                                      |   | $      | (2,150,567 | )      |   | $      | (1,074,680 | )                       |   | $ | (1,075,887 | ) |

|                                                                                                        |   | Net change 2010 to 2011 |    |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
| Development properties that became operational or were partially  operational in 2010 and/or 2011 |   | $                       | 467,431 |   |
| Properties under redevelopment during 2010 and/or 2011                                                      |   |                    | 171,409 |   |
| Properties fully operational during 2010 and 2011 and other                                                 |   |                    | 331,140 |   |
| Total                                                                                                       |   | $                       | 969,980 |   |

----

|                                                                                                        |   | Net change 2010 to 2011 |    |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
| Development properties that became operational or were partially  operational in 2010 and/or 2011 |   | $                       | 259,714 |   |
| Properties under redevelopment during 2010 and/or 2011                                                      |   |                    | (11,836 | ) |
| Properties fully operational during 2010 and 2011 and other                                                 |   |                    | 87,782  |   |
| Total                                                                                                       |   | $                       | 335,660 |   |

|                                                                                                        |   | Net change 2010 to 2011 |     |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------|
| Development properties that became operational or were partially  operational in 2010 and/or 2011 |   | $                       | 93,475   |   |
| Properties under redevelopment during 2010 and/or 2011                                                      |   |                    | 54,485   |   |
| Properties fully operational during 2010 and 2011 and other                                                 |   |                    | (211,330 | ) |
| Total                                                                                                       |   | $                       | (63,370  | ) |

|                                                                                                        |   | Net change 2010 to 2011 |     |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------|
| Development properties that became operational or were partially  operational in 2010 and/or 2011 |   | $                       | 318,864  |   |
| Properties under redevelopment during 2010 and/or 2011                                                      |   |                    | 750,687  |   |
| Properties fully operational during 2010 and 2011 and other                                                 |   |                    | (437,533 | ) |
| Total                                                                                                       |   | $                       | 632,018  |   |

----

----

|                            | Amounts due during the three months ended: |          |      |   |
|---------------------------------|--------------------------------------------|---------------|-----------|--------|
|                            |                                       | June 30, 2011 |      |   | September 30, 2011 |   |   | December 31, 2011 |   |   | March 31, 2012 |   |   | Total |   |
| Mortgage Debt - Fixed Rate 1    |                                       |          | —   |   |   |   | — |   |   |   | — |   |   |   | 25,059,161 |   |   |   | 25,059,161 |   |
| Mortgage Debt - Variable Rate 2 |                                       |          | 3,579,870 |   |   |   | — |   |   |   | 40,237,866 |   |   |   | 14,323,015 |   |   |   | 58,140,751 |   |
| Construction Loans 3            |                                       |          | 4,725,000 |   |   |   | — |   |   |   | 25,201,697 |   |   |   | — |   |   |   | 29,926,697 |   |
| Corporate Debt 4                |                                       |          | —   |   |   |   | — |   |   |   | — |   |   |   | 112,500,000 |   |   |   | 112,500,000 |   |
| Total                           |                                       | $             | 8,304,870 |   |   | $ | — |   |   | $ | 65,439,563 |   |   | $ | 151,882,176 |   |   | $ | 225,626,609 |   |

| ____________________ |
|----------------------|
| 1                    | None of the $25.1 million of fixed rate mortgage debt maturing over the next twelve months have automatic extensions.  However, we are pursuing financing alternatives to enable us to repay, refinance or extend the maturity dates of these loans.  |
| 2                    | Of the $58.1 million of variable rate mortgage debt maturing over the next twelve months, $20.6 million related to Gateway Shopping Center has an extension of one year, subject to certain customary conditions.  We may elect this option to extend the maturity date of this loan, and we currently believe that all of the conditions necessary for such extension will be met. With respect to the remaining $37.5 million, we are pursuing other financing alternatives to enable us to repay, refinance or extend the maturity dates of these loans.  |
| 3                    | Of the $29.9 million of construction loans maturing over the next twelve months, $25.2 million related to Eddy Street Commons, which has two one-year extensions, subject to certain customary conditions. We may elect this option to extend the maturity date of this loan, and we currently believe that all of the conditions necessary for such extension will be met. With respect to the remaining $4.7 million, we are pursuing other financing alternatives to enable us to repay, refinance or extend the maturity dates of this loan. |
| 4                    | We have received commitments from a syndicate of banks for an amendment and restatement of our unsecured credit facility, under which $112.5 million is currently outstanding. The banks’ commitments are subject to normal and customary due diligence and closing, which we expect to occur by the end of the second quarter of 2011. |

----

----

| 2011                 |   | $      | 76,229,252  |
|----------------------|--------|--------|-------------|
| 20121                |   |   | 181,245,805 |
| 20132                |   |   | 91,787,307  |
| 20143                |   |   | 43,585,074  |
| 2015                 |   |   | 42,151,788  |
| Thereafter           |   |   | 204,655,852 |
|                 |   |   | 639,655,078 |
| Unamortized Premiums |   |   | 439,197     |
| Total                |   | $      | 640,094,275 |

| ____________________ |
|----------------------|
| 1                    | We have received commitments from a syndicate of banks for an amendment and restatement of our $200 million credit facility which matures in 2012, under which $112.5 million has been drawn. The banks’ commitments are subject to normal and customary due diligence and closing, which we expect to occur by the end of the second quarter of 2011. |
| 2                    | Includes our $8.1 million share of the Parkside Town Commons construction loan. |
| 3                    | Includes our $4.7 million share of the Eddy Street Commons Limited Service Hotel construction loan. |

----

|                                                                                                   |  Three Months Ended March 31, |        |
|--------------------------------------------------------------------------------------------------------|------------------------------------|-------------|
|                                                                                                   |                               |   2011 |   |   |   2010 |   |
| Consolidated net loss                                                                                  |                               | $           | (777,311 | ) |   | $ | (1,131,124 | ) |
| Less preferred stock dividend                                                                          |                               |        | (1,443,750 | ) |   |   | — |   |
| Less net income attributable to noncontrolling interests in  properties                      |                               |        | (16,586 | ) |   |   | (79,089 | ) |
| Add depreciation and amortization of consolidated entities,  net of noncontrolling interests |                               |        | 9,014,386 |   |   |   | 8,322,513 |   |
| Add depreciation and amortization of unconsolidated entities                                           |                               |        | 83,200 |   |   |   | — |   |
| Funds From Operations of the Kite Portfolio1                                                           |                               |        | 6,859,939 |   |   |   | 7,112,300 |   |
| Less redeemable noncontrolling interests in Funds From  Operations                           |                               |        | (754,593 | ) |   |   | (796,578 | ) |
| Funds From Operations allocable to the Company1                                                        |                               | $           | 6,105,346 |   |   | $ | 6,315,722 |   |

| ____________________ |
|----------------------|
| 1                    | “Funds From Operations of the Kite Portfolio” measures 100% of the operating performance of our 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. |

----

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

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

----

Other Information

| 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        |   | Schedule of Non-Employee Trustee Fees and Other Compensation                                                                                                                   |   | Incorporated by reference to Exhibit 10.28 to the Annual Report on Form 10-K of Kite Realty Group Trust for the period ended December 31, 2010 |
|        |   |                                                                                                                                                                           |   |                                                                                                                                                |
| 12.1        |   | Statement of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends                                                                                |   | 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                                                                                                                                      |
|        |   |                                                                                                                                                                           |   |                                                                                                                                                |

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SIGNATURES

|         | KITE REALTY GROUP TRUST |
|--------------|-------------------------|
|         |                    |   |
| May 10, 2011 | By:                     | /s/ John A. Kite |
| (Date)       |                    | John A. Kite |
|         |                    | Chairman and Chief Executive Officer |
|         |                    | (Principal Executive Officer) |
|         |                    |   |
|         |                    |   |
| May 10, 2011 | By:                     | /s/ Daniel R. Sink |
| (Date)       |                    | Daniel R. Sink |
|         |                    | Chief Financial Officer |
|         |                    | (Principal Financial Officer and |
|         |                    | Principal Accounting Officer) |

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| Exhibit No.                                                                  |   | Description                                                                                                                                                                    |   | Location                                                                                                                                            |
|------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1             |   | Schedule of Non-Employee Trustee Fees and Other Compensation                                                                                                                   |   | Incorporated by reference to Exhibit 10.28 to the Annual Report on Form 10-K of Kite Realty Group Trust for the period ended December 31, 2010 |
|                                                                         |   |                                                                                                                                                                           |   |                                                                                                                                                |
| 12.1                                                                         |   | Statement of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends                                                                                |   | 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                                                                                                                                      |
|                                                                         |   |                                                                                                                                                                           |   |                                                                                                                                                |
|                                                                         |   |                                                                                                                                                                           |   |                                                                                                                                                |
|                                                                         |   |                                                                                                                                                                           |   |                                                                                                                                                |
|                                                                         |   |                                                                                                                                                                           |   |                                                                                                                                                |
|                                                                         |   |                                                                                                                                                                           |   |                                                                                                                                                |

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