Kite Realty Group Trust (NYSE:KRG) shares are walking in the clouds. The real estate investment trust operator of retail and commercial properties had a robust quarter, with further opportunity for growth. As a result, its shares have been rewarded with a premium multiple.

During the quarter, revenues rose 7.1% to $30.5 million, and funds from operation per share increased 11.5% to $0.29 year over year. During the quarter, the company acquired 105 acres for development in North Carolina and started redevelopment of its Glendale mall, signing Target (NYSE:TGT) as the anchor tenant. Occupancy was strong, with 95.2% of gross leaseable area rented out, versus 93.4% a quarter ago.

The company's holding the ends of a whole lot of strings, with 11 properties and 1.7 million square feet currently in development, out of a total 48 owned properties and 6.9 million square feet. Only 72% of the properties in the pipeline are leased; getting those properties stabilized should be a catalyst for value creation in the near future.

Looking ahead, the company expects to earn $1.24-$1.30 in FFO per diluted share, meaning that the company is trading at almost 16 times forward FFO. The company also offers a 3.8% run-rate dividend yield. Both of these multiples are much richer than the eight times forward FFO multiple and 5.5% yield seen at Cedar Shopping Centers (NYSE:CDR), or the 13 times forward FFO and 5.9% yield at National Retail Properties (NYSE:NNN). Nonetheless, before investing in Kite, Fools need to feel confident that the company can grow into its richer multiple. Keep your feet on the ground here, Fools, lest you get carried away.

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Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.