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Mar 31, 2021
Kilroy Realty Q1 2021 Earnings Report
Kilroy Realty's financial performance was highlighted by a significant gain on the sale of an operating property, alongside stable portfolio occupancy and strategic capital market activities.
Key Takeaways
Kilroy Realty Corporation reported a net income available to common stockholders of $497.6 million, or $4.26 per share, driven by a $457.3 million gain on the sale of The Exchange on 16th. FFO per share was $0.98. The stabilized portfolio maintained a high occupancy rate of 91.5% and 93.3% leased. Strategic capital market activities included amending and restating the unsecured revolving credit facility to $1.1 billion and completing construction on developments in San Diego and Los Angeles.
Net income available to common stockholders was $497.6 million, or $4.26 per share, including a $3.92 per share gain on the sale of an operating property.
FFO per share was $0.98, including a $0.01 per share charge primarily due to residential and office tenant creditworthiness as a result of the COVID-19 pandemic.
The stabilized portfolio was 91.5% occupied and 93.3% leased at quarter-end.
Completed the sale of The Exchange on 16th for gross proceeds of $1.08 billion and a GAAP gain on sale of an operating property of $457.3 million.
Revenue by Geographic Location
Forward Guidance
The Company is providing a guidance range of NAREIT-defined FFO per diluted share for its second quarter 2021 of $0.80 to $0.86 per share with a midpoint of $0.83 per share.
Positive Outlook
- Same Store Cash NOI growth of 1.0% to 2.0%
- Quarter-end occupancy of 91.3% to 91.5%
- Total development spending of approximately $100.0 million to $125.0 million
- No acquisitions or dispositions assumed
- Reflects management’s views on current and future market conditions, including assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this report.
Challenges Ahead
- Does not include any estimates of possible future gains or losses from possible future dispositions because the magnitude of gains or losses on sales of depreciable operating properties, if any, will depend on the sales price and depreciated cost basis of the disposed assets at the time of disposition
- The timing of any gain recognition will depend on the closing of the dispositions.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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