Kilroy Realty(US:KRC)2025-05-06 20:24Financial Performance - Total revenues for Q1 2025 were $270,844,000, a decrease of 2.6% from $278,581,000 in Q1 2024[23] - Net income available to common stockholders for Q1 2025 was $39,008,000, down 21.8% from $49,920,000 in Q1 2024[23] - Rental income decreased to $266,244,000 in Q1 2025, compared to $274,890,000 in Q1 2024, reflecting a decline of 3.2%[23] - Net income for Q1 2025 was $43.681 million, a decrease of 21.6% from $55.700 million in Q1 2024[34] - Total revenues for Q1 2025 were $270.844 million, down 2.6% from $278.581 million in Q1 2024[34] - Net income for the three months ended March 31, 2025, was $43.681 million, a decrease of 21.6% from $55.700 million in the same period of 2024[41] - Net income available to common stockholders for the three months ended March 31, 2025 was $39.008 million, a decrease of 21.8% from $49.920 million in 2024[100] - Basic earnings per share for the three months ended March 31, 2025 was $0.33, down from $0.42 in 2024, reflecting a 21.4% decline[100] Assets and Liabilities - Total assets as of March 31, 2025, were $10,878,685,000, slightly down from $10,898,357,000 as of December 31, 2024[20] - Total liabilities increased to $5,298,700,000 as of March 31, 2025, compared to $5,289,488,000 at the end of 2024[20] - Total liabilities stood at $5.299 billion as of March 31, 2025, slightly up from $5.289 billion at the end of 2024[32] - Total debt, net as of March 31, 2025, was $4,597,842,000, after accounting for unamortized net discounts and deferred financing costs[71] - Total debt as a percentage of total market capitalization was 54.2% as of March 31, 2025, with total debt amounting to $4.630 billion[189] Cash Flow - Cash and cash equivalents decreased to $146,711,000 from $165,690,000 at the end of 2024, a decline of 11.4%[20] - Net cash provided by operating activities was $136.921 million, compared to $167.869 million in the same period last year, reflecting a decrease of 18.4%[34] - Cash and cash equivalents at the end of Q1 2025 were $146,711,000, down 82.8% from $855,007,000 at the end of Q1 2024[110] - The company accrued dividends and distributions payable to common stockholders totaling $64,990,000 in Q1 2025, compared to $65,111,000 in Q1 2024[108] Dividends and Distributions - The company declared dividends of $0.54 per share, totaling $65,353,000 for Q1 2025[26] - The company declared distributions of $0.54 per common unit for Q1 2025, totaling $65.974 million[38] - The company declared a regular quarterly cash dividend of $0.54 per share of common stock, resulting in total cash dividends and distributions of $64.5 million paid on April 9, 2025[186] Development and Leasing - The company has eight future development sites representing approximately 64 gross acres of undeveloped land as of March 31, 2025[49] - The company has a future development pipeline that includes eight projects with an aggregate cost basis of approximately $1.5 billion, expected to yield over 6.0 million rentable square feet of office space[140] - The Kilroy Oyster Point (Phase 2) project in South San Francisco is in the tenant improvement phase, encompassing approximately 875,000 square feet with an estimated investment of $1.0 billion[139] - The company is actively evaluating opportunities for the potential disposition of non-core properties as part of its capital recycling program[133] - The company expects to add properties to the stabilized portfolio upon completion of the 12-month lease-up period, projected to end in Q3 2025[144] Occupancy and Leasing Metrics - The stabilized portfolio included 123 office properties with a total rentable square footage of 17,135,817, achieving an occupancy rate of 81.4%[46] - The average occupancy rate for stabilized residential properties was 95.2% across 1,001 units as of March 31, 2025[48] - Approximately 3.2 million rentable square feet, or 18.6%, of the stabilized portfolio was unoccupied as of March 31, 2025[129] - The retention rate, including subtenants, is reported at 33.9%[123] - The total number of leases executed was 21, with a total of 244,189 rentable square feet, and a weighted average rent of $66 per square foot[120] Interest and Financing - Interest expense for Q1 2025 was $31,148,000, a decrease from $38,871,000 in Q1 2024, reflecting a reduction of 19.7%[23] - The company incurred gross interest expense of $51,696,000 for the three months ended March 31, 2025, compared to $58,678,000 for the same period in 2024[74] - The interest rate for the unsecured revolving credit facility is 5.61% as of March 31, 2025, compared to 5.69% as of December 31, 2024[198] Compensation and Expenses - The total compensation cost for share-based compensation programs was $5.2 million for the three months ended March 31, 2025, compared to $4.7 million in 2024, representing an increase of 10.6%[90] - The company recognized $0.4 million of compensation expense for the 2025 Performance-Based RSUs during the three months ended March 31, 2025[82] - General and administrative expenses remained consistent, with a slight decrease of $0.4 million, or 2.3%, for the three months ended March 31, 2025[171] Market and Strategic Outlook - The company plans to spend between $50.0 million to $150.0 million on development projects throughout the remainder of 2025[211] - The company continuously evaluates opportunities for the potential disposition of non-core properties to finance new acquisitions and development projects[205] - The company’s liquidity strategy includes maintaining a conservative balance sheet and utilizing multiple sources of capital for long-term requirements[196]