Kilroy Realty Corporation Quarter Ended December 31, 2024 Company Overview Who is Kilroy? | IO QUICK FACTS | | | | --- | --- | --- | | abilized Portfolio | | 17,142,721 | | ેટ | | 123 | | ed (%) | | 82.8% / 84.9% | | ENANTS BY ABR (1) | | | | % of | % of | Credit Ratings | | ABR (1) | RSF | (S&P / Moody's) | | 5.7% | 5.0% | AA+ / Aaa | | 4.5% | 2.2% | BBB / Baa2 | | 4.2% | 2.5% | NR / NR | | 3.5% | 3.1% | A+ / A1 | | 3.3% | 3.4% | AAA / Aaa | | 3.1% | 2.8% | A+ / A1 | | 3.1% | 1.7% | NR / NR | | 3.0% | 1.4% ...

Kite Realty Group Trust (KRG) Q1 2025 Earnings Call April 30, 2025 01:00 PM ET Company Participants Bryan McCarthy - Senior Vice President of Corporate Marketing & CommunicationsJohn Kite - Chairman and Chief Executive OfficerHeath Fear - Executive VP & CFOThomas McGowan - President & COOFloris van Dijkum - Managing DirectorRJ Milligan - Managing DirectorDaniel Purpura - Senior Associate - Equity ResearchHongliang Zhang - Vice PresidentDori Kesten - Director Conference Call Participants Todd Thomas - Managi ...

Financial Data and Key Metrics Changes - The company reported FFO per diluted share of $0.52 for Q1 2025, a decrease of approximately $0.03 compared to Q4 2024, primarily due to the impact of the Del Monte Center disposition [18][6] - Same store cash NOI increased by 3.1% year over year across all sectors, with positive growth reported in all sectors except mixed-use [18][19] - The company ended Q1 with liquidity of approximately $544 million, including $144 million in cash and $400 million available on a revolving line of credit [22] Business Line Data and Key Metrics Changes - The office portfolio's same store NOI increased by 5.4% in Q1 2025, driven by the expiration of a rent abatement [18][19] - The retail portfolio's same store NOI also increased by 5.4%, supported by new leases and contractual rent escalations [19] - The multifamily portfolio's NOI was flat year over year, primarily due to lower rental income in Portland, while San Diego properties showed growth [19][12] - The mixed-use portfolio's NOI declined by approximately 11.6%, mainly due to lower occupancy at the Embassy Suites Waikiki [19][20] Market Data and Key Metrics Changes - The office portfolio ended Q1 at 85.5% leased, with an increase in leasing activity and average base rents reaching an all-time high [9][11] - The retail portfolio ended the quarter 97% leased, with strong collections and an all-time high average base rent [11][12] - The multifamily properties in San Diego ended the quarter approximately 95% leased, with a blended rent increase of 2% [12][13] Company Strategy and Development Direction - The company is focused on thoughtful capital allocation, operational discipline, and enhancing asset quality to ensure long-term stability [5][6] - Recent strategic initiatives include the sale of Del Monte Center and the acquisition of Genesee Parks Apartments, aimed at concentrating capital in core markets [14][15] - The company aims to maintain a balance sheet that allows for flexibility in both offensive and defensive strategies [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ongoing shift in office dynamics, despite economic uncertainty [7][10] - The company remains focused on reducing leverage and maintaining strong liquidity, which is deemed essential in the current environment [6][22] - Management acknowledged potential challenges in leasing activity due to economic uncertainty but remains committed to monitoring market conditions closely [14][26] Other Important Information - The Board approved a quarterly dividend of $0.34 per share for Q2, reflecting confidence in the company's outlook [16][17] - The company aims to achieve and maintain a long-term net debt to EBITDA ratio of 5.5 times or below [22] Q&A Session Summary Question: Update on Bellevue assets and occupancy - Management noted significant leasing momentum in Bellevue, with recent leases bringing occupancy to 97% at Timber Ridge and ongoing interest in other properties [30][32] Question: Impact of Proposition 1A on tenant interest - Management observed increased inbound tenant inquiries in Bellevue, indicating a positive response to the proposition [34] Question: Plans for redeploying proceeds from Del Monte Center sale - The company is actively looking for additional acquisitions but is also comfortable holding cash on the balance sheet amid economic uncertainty [36][37] Question: Update on leasing pipeline at La Jolla - The UTC submarket remains tight, with ongoing proposals and construction of amenities expected to boost leasing activity [38][41]

Financial Data and Key Metrics Changes - The company reported FFO per share as adjusted for comparability of $0.65, representing a year-over-year increase of 4.8% [21] - Same property cash NOI increased by 7.1% year-over-year, with a 4.3% increase when excluding real estate tax refunds [22] - The annual dividend was increased by 3.4%, marking the third consecutive year of dividend increases [3] Business Line Data and Key Metrics Changes - The company signed 179,000 square feet of vacancy leasing year-to-date, achieving 45% of the full-year target [4] - Tenant retention was reported at 75% during the quarter, despite some contractions and non-renewals [5] - The defense IT portfolio occupancy rate has exceeded 94% for nine consecutive quarters [6] Market Data and Key Metrics Changes - The company executed 120,000 square feet of vacancy leasing in the first quarter, with over 40% tied to secure space and nearly 50% related to cyber activity [11] - Columbia Gateway was highlighted as a standout market, with significant leasing activity [12] - The leasing pipeline remains strong, with 975,000 square feet of prospects, equating to a healthy activity ratio of 79% [14] Company Strategy and Development Direction - The company is focused on developing into visible demand, as evidenced by the commencement of a new 150,000 square foot building [6] - The strategy includes maintaining a strong focus on defense-related missions, aligning with government priorities [10] - The company plans to fund the equity component of investments with cash flow from operations on a leverage-neutral basis [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that priority missions will not be impacted by recent budget reallocations [9] - The company expects to maintain its full-year guidance for FFO per share at $2.66, implying a 3.5% growth over 2024 [7] - Management noted that the leasing activity to tenants executing priority missions is strong and broad-based [20] Other Important Information - The company has a development leasing pipeline of approximately 1,200,000 square feet, with an additional 1,500,000 square feet of potential development opportunities [20] - The balance sheet remains strong, with 98% of debt at fixed rates [23] - The company anticipates compound annual FFO per share growth of 4% between 2023 and 2026 [27] Q&A Session Summary Question: Update on Space Command relocation to Huntsville - Management indicated high expectations for a decision on the relocation within weeks, which could be beneficial for shareholders [30] Question: Investment pipeline and mix between acquisitions and developments - Management expects to meet the $225 million earmarked for new investments primarily through new development starts, with potential acquisitions being evaluated [32][33] Question: Impact of data center demand on tenants - Management stated that current data center operations will not be affected, but power availability remains a challenge for future developments [36][100] Question: Progress on vacancy leasing and rent growth - Management noted solid rent performance and a reduction in concessions, indicating a stable market [40][41] Question: Bond offering pricing expectations - Management estimated that the bond would likely price at or slightly higher than 6% based on current market conditions [42] Question: Retention rates and non-renewals - Management confirmed a 75% retention rate and expressed confidence in backfilling non-renewed spaces quickly [80][81] Question: Government lease expirations and renewals - Management expects to renew 100% of government leases, with activity ramping up in the upcoming quarters [58][59]

Call Start: 8:30 January 1, 0000 9:14 AM ET Armada Hoffler Properties, Inc. (NYSE:AHH) Q4 2024 Earnings Conference Call February 20, 2025 8:30 AM ET Company Participants Chelsea Forrest - Vice President of Investor Relations Shawn Tibbetts - President and CEO Matthew Barnes-Smith - CFO Conference Call Participants Robert Stevenson - Janney Montgomery Viktor Fediv - Scotia Bank Andrew Berger - Bank of America Operator Good morning, ladies and gentlemen, welcome to the Armada Hoffler Fourth Quarter Earning ...