Kilroy Realty(US:KRC)2025-10-28 20:25Financial Performance - Total revenues for Q3 2025 were $279.744 million, a decrease of 3.9% from $289.938 million in Q3 2024[24] - Net income available to common stockholders for Q3 2025 was $156.220 million, compared to $52.378 million in Q3 2024, representing a significant increase of 197.5%[24] - Rental income for the nine months ended September 30, 2025, was $826.224 million, down from $836.760 million for the same period in 2024, a decrease of 1.4%[24] - Net income for the nine months ended September 30, 2025, was $285,531,000, compared to $167,920,000 for the same period in 2024, representing a year-over-year increase of 70%[32] - Net income for Q3 2025 was $162.3 million, significantly up from $57.7 million in Q3 2024, representing an increase of 181.5%[38] - Total revenues for the nine months ended September 30, 2025, were $840.48 million, slightly down from $849.25 million in the same period of 2024[120] Cash and Liquidity - Cash and cash equivalents increased to $372.416 million as of September 30, 2025, up from $165.690 million at the end of 2024, reflecting a growth of 124.5%[21] - Cash provided by operating activities increased to $457,235,000 for the nine months ended September 30, 2025, from $432,912,000 in 2024, reflecting a growth of 5.6%[32] - Cash and cash equivalents at the end of the period were $372,416,000, down from $625,395,000 at the beginning of the period, reflecting a decrease of 40.4%[32] - Cash and cash equivalents at the end of Q3 2025 were $372.42 million, down from $625.40 million at the end of Q3 2024[115] - As of September 30, 2025, the company had approximately $372.4 million in cash and cash equivalents and $1.1 billion available under its unsecured revolving credit facility[206] Assets and Liabilities - Total assets rose to $10.992 billion as of September 30, 2025, compared to $10.898 billion at the end of 2024, marking an increase of 0.9%[21] - Total liabilities were $5.306 billion as of September 30, 2025, slightly up from $5.289 billion at the end of 2024, indicating a marginal increase of 0.3%[21] - Total liabilities increased slightly to $5.31 billion as of September 30, 2025, compared to $5.29 billion at the end of 2024, an increase of 0.4%[35] - Total debt, net, as of September 30, 2025, was $4.589 billion, after accounting for unamortized net discounts and deferred financing costs[81] Equity and Stockholder Information - Total stockholders' equity increased to $5.465 billion as of September 30, 2025, from $5.382 billion at the end of 2024, representing a growth of 1.5%[21] - The company declared dividends of $0.54 per share/unit, totaling $64,364,000 for the quarter ending June 30, 2025[28] - Net income available to common unitholders for Q3 2025 was $157.74 million, up from $52.89 million in Q3 2024, marking a 197% increase[112] - Basic earnings per share for Q3 2025 was $1.32, compared to $0.44 in Q3 2024, reflecting a 200% increase[110] Operational Metrics - The company reported gains on sales of depreciable operating properties amounting to $110.484 million in Q3 2025, with no comparable figure in Q3 2024[24] - The company reported gains on sales of depreciable operating properties of $127,038,000 in 2025, with no comparable figure for 2024[32] - The company reported net cash used in investing activities of $10,919,000 for the nine months ended September 30, 2025, compared to $133,548,000 in 2024, showing a significant reduction in cash outflow[32] - The company reported a net increase in cash and cash equivalents of $206.7 million for the nine months ended September 30, 2025[45] Development and Redevelopment - The company’s future development pipeline consists of eight potential sites representing approximately 64 gross acres of undeveloped land as of September 30, 2025[53] - The future development pipeline 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 and about 1,750 residential units[159] - The company completed two redevelopment properties placed in service, adding 100,488 rentable square feet to the portfolio[128] Leasing and Occupancy - The stabilized portfolio included 121 office properties with a total of 16,811,767 rentable square feet and an occupancy rate of 81.0% as of September 30, 2025[50] - The average occupancy rate for stabilized residential properties was 94.1% with 1,001 units across three properties[52] - The occupancy rate for the San Francisco Bay Area properties was 85.7% as of September 30, 2025, an increase from 84.8% as of June 30, 2025[131] - The company executed 13 leases, totaling 422,587 rentable square feet, with a weighted average lease term of 77 months[139] Debt and Financing - The company issued $400.0 million in unsecured senior notes in August 2025, with a stated annual interest rate of 5.875% and scheduled maturity on October 15, 2035[72] - The outstanding borrowings under the unsecured revolving credit facility remained at $0, with a total borrowing capacity of $1.1 billion as of September 30, 2025[76] - The company has authorized a share repurchase program with a gross purchase price of up to $500.0 million, which commenced in February 2024[85] General and Administrative Expenses - General and administrative expenses remained consistent for the nine months ended September 30, 2025, compared to the same period in 2024, while leasing costs increased by $1.0 million, or 14.9%[195]