Kilroy Realty(US:KRC)2026-02-09 21:38Financial Performance - Revenues for Q4 2025 were $272.2 million, down 4.9% from $286.4 million in Q4 2024[6] - Net income available to common stockholders for Q4 2025 was $12.4 million, or $0.10 per diluted share, compared to $59.5 million, or $0.50 per diluted share in Q4 2024[6] - Funds from operations (FFO) for Q4 2025 were $117.2 million, or $0.97 per diluted share, down from $144.9 million, or $1.20 per diluted share in Q4 2024[6] - For the full year 2025, revenues totaled $1,112.7 million, a decrease of 2.1% from $1,135.6 million in 2024[10] - Net income for the full year 2025 was $276.1 million, or $2.32 per diluted share, compared to $211.0 million, or $1.77 per diluted share in 2024[10] - Net income for Q4 2025 was $17.1 million, significantly lower than Q3 2025's $162.3 million, reflecting a decrease of 89.5%[38] - The company reported a total net income of $302,640,000 for the year ended December 31, 2025, up from $232,954,000 in 2024[162] Operational Metrics - The stabilized portfolio was 81.6% occupied and 83.8% leased as of December 31, 2025, with 827,000 square feet of leases signed during the quarter, the strongest performance in six years[6] - The company signed approximately 2,051,000 square feet of leases in 2025, the highest annual leasing volume since 2019[10] - The company executed 121 leases during Q4 2025, contributing to the overall portfolio performance[33] - Average occupancy across the portfolio was 80.9% for Q4 2025, compared to 80.7% in Q3 2025[34] - The company recognized an impairment charge of approximately $16.3 million for the Sunset Media Center during Q4 2025[39] - The company has a total of 1,001 residential properties, with an average occupancy rate of 94.1% as of December 31, 2025[69] Cash Flow and Expenses - Cash and cash equivalents decreased to $179.3 million from $372.4 million in Q3 2025, a decline of 52.0%[36] - General and administrative expenses for Q4 2025 were $19.5 million, an increase from $18.2 million in Q3 2025, reflecting a rise of 6.8%[38] - The company incurred $32,148,000 in interest expense for Q4 2025, slightly down from $33,245,000 in Q4 2024[45] - The company's total cash operating expenses for the year ended December 31, 2025, were $36.294 million, compared to $34.861 million in 2024[92] Debt and Equity - Total debt amounts to $4,625,442, representing 50.8% of total market capitalization[110] - The weighted average stated interest rate for total debt is 4.27%[111] - The company's total equity and noncontrolling interest in the operating partnership is $4,465,939, accounting for 49.2% of total market capitalization[110] - The company's net debt to share of EBITDAre ratio is 7.0x as of December 31, 2025[114] Future Outlook and Guidance - The company initiated FFO per share guidance for 2026 of $3.25 to $3.45 per diluted share[15] - The company has a development pipeline with anticipated proceeds of $289.5 million from properties held for sale and under contract[90] - The future development pipeline includes projects totaling approximately 4.5 million square feet, with total cash costs incurred of $1.435 billion as of December 31, 2025[103] - The company anticipates potential risks including economic conditions, tenant defaults, and changes in interest rates that could impact future performance[169] Sustainability and Environmental Impact - The company achieved carbon neutral operations for the sixth consecutive year and installed over six megawatts of onsite solar capacity[14] Tenant and Lease Information - The top 20 tenants contribute $408,709,000 in annualized base rental revenue, accounting for 53.7% of total rental revenue[80] - The weighted average remaining lease term for the top 20 tenants is 5.5 years[80] - The company has a diversified tenant base with major tenants including a global technology company and Adobe Systems, contributing significantly to rental revenue[80]