Sep 30, 2023

Kilroy Realty Q3 2023 Earnings Report

Kilroy Realty's performance remained steady, marked by revenue growth and strategic leasing activities.

Key Takeaways

Kilroy Realty Corporation reported a revenue increase of 2.8% to $283.6 million compared to the prior year. The stabilized portfolio was 86.2% occupied and 87.5% leased at quarter-end. Net income available to common stockholders per diluted share was $0.45 and FFO per diluted share was $1.12.

Revenues increased by 2.8% year-over-year, reaching $283.6 million.

The stabilized portfolio maintained a strong occupancy rate of 86.2% and was 87.5% leased.

Net income available to common stockholders was $0.45 per diluted share.

Funds From Operations (FFO) amounted to $1.12 per diluted share.

Total Revenue
$284M
Previous year: $273M
+4.1%
EPS
$1.12
Previous year: $1.17
-4.3%
Average Residential Occupancy
92.7%
Previous year: 93.5%
-0.9%
Occupancy
86.2%
Previous year: 90.8%
-5.1%
Leased
87.5%
Previous year: 92.6%
-5.5%
Gross Profit
$192M
Previous year: $194M
-1.1%
Cash and Equivalents
$898M
Previous year: $250M
+259.1%
Total Assets
$11.5B
Previous year: $10.6B
+8.0%

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 2023 of $4.55 to $4.60 per share with a midpoint of $4.58 per share.

Positive Outlook

  • Same Store Cash NOI growth 2.75% to 3.25%
  • Average occupancy 87.00% to 87.50%
  • Total development spending $400 million to $450 million
  • Net income available to common stockholders per share - diluted $1.75 to $1.80
  • Funds From Operations $542,700 to $548,900

Challenges Ahead

  • Market conditions
  • Rental rates
  • Occupancy levels
  • Earnings impact of the events referenced in this report.
  • Future disposition activity

Revenue & Expenses

Visualization of income flow from segment revenue to net income