Kilroy Realty(KRC) - 2024 Q4 - Annual Results

Financial Performance - Revenues for Q4 2024 were $286.4 million, up 6.5$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$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]