Financial Data and Key Metrics Changes - FFO was $1.20 per diluted share in Q4 2024, impacted by one-time items totaling approximately $0.11 per share [22] - Cash same-property NOI growth was 70 basis points in Q4 2024, including a 90 basis point contribution from restoration and termination fee income [22] - Occupancy ended the year at 82.8%, affected by large move-outs including Capital One and Microsoft [23] Business Line Data and Key Metrics Changes - The company signed approximately 708,000 square feet of leases in Q4 2024, the highest level of leasing activity since Q4 2019 [8] - Significant deals included a multi-floor lease with Walmart and a 274,000 square foot lease with a global technology company [9][10] - The company expects average occupancy in 2025 to range between 80% and 82%, a decrease of approximately 300 basis points compared to 2024 [23] Market Data and Key Metrics Changes - The transaction market showed positive trends with increased deal volume and financing levels year-over-year, particularly for smaller deals [17] - In Q4 2024, notable core deals were observed in Austin and the Bay Area with going-in yields in the mid-6% to low-7% range [18] - VC funding for life sciences reached $11.1 billion in 2024, up 39% from 2023, indicating strong demand in that sector [50] Company Strategy and Development Direction - The company is focused on maximizing value realization for shareholders by assessing future development pipelines and exploring alternative uses for certain land parcels [14] - The completion of Kilroy Oyster Point Phase 2 is expected to drive growth, with the project now fully ready to welcome tenants [13] - The company aims to maintain a flexible balance sheet and monetize non-core assets while delivering high-quality developments [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of markets, expecting sustained trends to accelerate over the next several years [11] - The company anticipates a busy year across all parts of its platform, with a focus on addressing lease expirations proactively [16] - Management noted that after Q1 2025, they expect more stability in occupancy levels throughout the year [36] Other Important Information - The company sold its corporate airplane in Q4 2024, contributing to financial results [7] - The company is in advanced discussions with residential developers on two sites expected to generate over $150 million in proceeds [20] - Non-cash GAAP NOI adjustments are expected to decline significantly in 2025, reflecting the cadence of leasing activity over the last 24 months [26] Q&A Session Summary Question: Current visibility on occupancy for 2025 - Management indicated significant move-outs in Q1 2025 but expects stability in occupancy levels after that [36] Question: Conversations regarding KOP Phase 2 - Management noted that the completion of KOP Phase 2 has changed the nature of tenant conversations, leading to increased interest [41][42] Question: Addressing 2026 lease expirations - Management confirmed that the largest expiration in 2026 is still reflected in the schedule, as it involves a direct deal with a subtenant [54] Question: Impact of AI and NIH funding on tenant decisions - Management has not observed any deals being put on hold due to recent headlines regarding AI or NIH funding [99] Question: Thoughts on retaining multifamily towers - Management views the retained multifamily towers as significant growth drivers integrated with other uses [103] Question: Demand for higher-quality repositioned assets - Management believes that the demand for high-quality assets allows them to maintain steady concessions without undercutting the market [112][115]

分组1 - Kilroy Realty (KRC) reported quarterly funds from operations (FFO) of $1.20 per share, exceeding the Zacks Consensus Estimate of $1.03 per share, and up from $1.08 per share a year ago, representing a 16.50% surprise [1] - The company achieved revenues of $286.38 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.30%, compared to $269.02 million in the same quarter last year [2] - Kilroy Realty has consistently surpassed consensus FFO estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed the market, losing about 7.9% since the beginning of the year, while the S&P 500 has gained 2.5% [3] - The current consensus FFO estimate for the upcoming quarter is $1.04 on revenues of $276.31 million, and for the current fiscal year, it is $4.16 on revenues of $1.11 billion [7] - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is in the bottom 32% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Performance - Revenues for Q4 2024 were $286.4 million, up 6.5% from $269.0 million in Q4 2023[6] - Net income available to common stockholders for Q4 2024 was $59.5 million, or $0.50 per diluted share, compared to $47.3 million, or $0.40 per diluted share in Q4 2023[6] - Funds from operations (FFO) for Q4 2024 were $144.9 million, or $1.20 per diluted share, an increase from $129.3 million, or $1.08 per diluted share in Q4 2023[6] - For the full year 2024, total revenues were $1,135.6 million, slightly up from $1,129.7 million in 2023[9] - The company expects Nareit FFO for the full year 2025 to be between $3.85 and $4.05 per diluted share[11] - The company sold its corporate aircraft in November 2024 for gross proceeds of $19.8 million, resulting in a gain of approximately $6.0 million[5] - Total expenses for the year ended December 31, 2024, were $801.1 million, slightly up from $799.8 million in 2023[38] - The company reported a weighted average of 119.7 million common shares outstanding for the year ended December 31, 2024[38] Leasing Activity - Leasing activity in Q4 2024 reached approximately 708,000 square feet, the highest quarterly leasing volume since Q4 2019[6] - The company signed approximately 1,778,000 square feet of leases in 2024, the highest annual leasing volume since 2019[9] - In Q4 2024, the company executed 20 new leases totaling 555,252 square feet, with a weighted average lease term of 69 months[64] - Year-to-date, the company signed 76 leases totaling 1,417,287 square feet, with 66 new leases accounting for 950,507 square feet[64] Portfolio Occupancy - The stabilized portfolio was 82.8% occupied and 84.9% leased as of December 31, 2024[6] - The average occupancy for the total same store portfolio decreased to 83.5% in Q4 2024 from 86.1% in Q4 2023[43] - The stabilized portfolio's average occupancy rate was 82.8% as of December 31, 2024, down from 84.3% at the end of Q3 2024[46] - The company continues to focus on stabilizing its portfolio and improving occupancy rates across various regions[46] Financial Health and Liquidity - The company had approximately $1.3 billion in total liquidity as of December 31, 2024, including $0.2 billion in cash and cash equivalents[9] - The company has a total debt of $4,631,688 thousand, representing 49.0% of total market capitalization[100] - The weighted average stated rate of total debt is 4.17% as of December 31, 2024[100] - The company maintains a fixed charge coverage ratio of 3.3x, exceeding the covenant requirement of greater than 1.5x[109] Development and Future Outlook - The company is actively involved in future development projects, indicating a commitment to growth and market expansion[22] - Total estimated investment for ongoing projects is $1,025 million with 875,000 rentable square feet under construction, expected to stabilize by Q1 2026[92] - Future development pipeline includes approximately 3,800,000 square feet of developable space with total cash costs incurred as of December 31, 2024, amounting to $1,378 million[96] - The company continues to focus on market expansion and potential acquisitions to enhance portfolio performance[41] Risk Factors - The company faces various risks including economic conditions, tenant defaults, and competition, which could impact future performance[22] Key Metrics - The Net Operating Income Margin improved to 68.5%, compared to 67.8% in Q3 2024[25] - The Company uses Net Operating Income (NOI) as a performance measure to evaluate operating performance, reflecting consolidated revenues and expenses directly associated with owning and operating commercial real estate[115] - Funds Available for Distribution (FAD) is computed by adjusting FFO for recurring tenant improvements and capital expenditures, providing insights into the Company's liquidity[127]

Group 1 - The article discusses the current volatility in the stock market at the beginning of 2025, highlighting the potential opportunities for value investors to acquire dividend stocks at lower prices [2] - Kilroy Realty is mentioned as a focus for investment, indicating a preference for defensive stocks with a medium- to long-term investment horizon [2] - The article emphasizes the importance of sustainable portfolio income, diversification, and inflation hedging in income-focused investing [1] Group 2 - The author has a beneficial long position in Kilroy Realty shares, indicating confidence in the stock's performance [3] - The article serves as an informational piece rather than financial advice, encouraging readers to conduct their own due diligence [4] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [5]

Core Viewpoint - Kilroy Realty Corporation (NYSE: KRC) is rated as a Buy for income-focused investors interested in real estate investment trusts (REITs) despite its struggles due to exposure to the office market [1] Company Analysis - Kilroy Realty Corporation has been negatively impacted by its exposure to the office market, leading to a decline in its stock performance [1] - The company is viewed as a potential investment opportunity for those seeking income through REITs [1] Analyst Background - The analysis is provided by David A. Johnson, who has over 30 years of investment experience and holds advanced degrees in finance and business administration [1]

I am an experienced financial analyst and a former writer for Fade The Market on Seeking Alpha, with a passion for numbers and a knack for unraveling complex financial data. Armed with a strong financial modeling and data analysis background, I thrive on providing accurate insights and recommendations to drive informed financial decisions. I possess a keen eye for detail and possess a solid understanding of market trends and economic indicators. My expertise lies in evaluating investment opportunities, asse ...

Friday was a good day to be an investor in commercial real estate company Kilroy Realty (KRC 4.09%). On news of an analyst upgrade, accompanied by a price-target bump, Kilroy's stock zoomed to close the trading session more than 4% higher. That handily beat the performance of the benchmark S&P 500 index, which rose by slightly over 1%.A new bull says buyWell before market open, JPMorgan Chase's Anthony Paolone shifted his recommendation on Kilroy's shares to overweight (i.e., buy) from neutral. The pundit a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ 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: 1-12675 (Kilroy Realty Corporation) Commission File Number: 000-54005 (Kilroy Realty, L.P.) | --- | --- | --- | |-------------- ...

Kilroy Realty Corporation (NYSE:KRC) Q3 2024 Results Conference Call October 29, 2024 1:00 PM ET Company Participants Taylor Friend - Senior Vice President, Capital Markets & Treasurer Angela Aman - CEO Eliott Trencher - EVP, CIO Jeffrey Kuehling - EVP, CFO Rob Paratte - EVP, Chief Leasing Officer Justin Smart - President Conference Call Participants Nick Yulico - Scotiabank Upal Rana - KeyCorp Blaine Heck - Wells Fargo Jeffrey Spector - Bank of America Merrill Lynch Anthony Paolone - JP Morgan Michael Grif ...

Kilroy Realty (KRC) came out with quarterly funds from operations (FFO) of $1.17 per share, beating the Zacks Consensus Estimate of $1.04 per share. This compares to FFO of $1.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of 12.50%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.08 per share when it actually produced FFO of $1.10, delivering a surprise of 1.85%. Over the last four quar ...