Sep 30, 2022

Kilroy Realty Q3 2022 Earnings Report

Kilroy Realty's performance was marked by revenue growth, strategic leasing, and capital market activities.

Key Takeaways

Kilroy Realty Corporation reported a strong Q3 2022, with revenues up 19% year-over-year to $276.0 million. The company completed the sale of 3130 Wilshire and signed significant new and renewing leases. FFO per diluted share increased by approximately 20% compared to the prior year.

Revenues increased by approximately 19% to $276.0 million compared to the prior year.

The stabilized portfolio was 90.8% occupied and 92.6% leased at quarter-end.

FFO per diluted share was $1.17, showing an increase of approximately 20% compared to the prior year.

Completed the sale of 3130 Wilshire and signed new and renewing leases in the development and stabilized portfolios.

Total Revenue
$273M
Previous year: $231M
+18.1%
EPS
$1.17
Previous year: $0.98
+19.4%
Average Residential Occupancy
93.5%
Occupancy
90.8%
Previous year: 91.5%
-0.8%
Leased
92.6%
Previous year: 93.9%
-1.4%
Gross Profit
$194M
Previous year: $165M
+17.5%
Cash and Equivalents
$250M
Previous year: $348M
-28.3%
Total Assets
$10.6B
Previous year: $10.5B
+1.4%

Kilroy Realty

Kilroy Realty

Kilroy Realty Revenue by Geographic Location

Forward Guidance

The company is providing an updated guidance range of NAREIT-defined FFO per diluted share for its fiscal year 2022 of $4.62 to $4.68 per share with a midpoint of $4.65 per share.

Positive Outlook

  • Same Store Cash NOI growth of 6.0% to 6.5%
  • Total remaining development spending of approximately $100.0 million to $150.0 million
  • Net income available to common stockholders per share - diluted $1.89
  • Weighted average common shares outstanding - diluted 117,200
  • Funds From Operations $550,150

Challenges Ahead

  • Possible future acquisitions
  • Possible capital markets activity
  • Possible future impairment charges
  • Any events outside of the Company’s control
  • Rental rates, occupancy levels, and the earnings impact of the events

Revenue & Expenses

Visualization of income flow from segment revenue to net income