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Sep 30, 2024

Kilroy Realty Q3 2024 Earnings Report

Kilroy Realty reported strong financial results, demonstrating solid leasing activity and strategic capital allocation.

Key Takeaways

Kilroy Realty Corporation reported a revenue increase of 2.2% to $289.9 million for Q3 2024 compared to Q3 2023. Net income available to common stockholders was $0.44 per diluted share. The stabilized portfolio was 84.3% occupied and 85.8% leased.

Revenues increased by 2.2% year-over-year.

Net income available to common stockholders was $0.44 per diluted share.

Funds from operations (FFO) increased by 4.5% year-over-year.

Stabilized portfolio was 84.3% occupied and 85.8% leased.

Total Revenue
$290M
Previous year: $284M
+2.2%
EPS
$1.17
Previous year: $1.12
+4.5%
Average Residential Occupancy
92%
Previous year: 92.7%
-0.8%
Occupancy
84.3%
Previous year: 86.2%
-2.2%
Leased
85.8%
Previous year: 87.5%
-1.9%
Gross Profit
$194M
Previous year: $192M
+1.5%
Cash and Equivalents
$625M
Previous year: $898M
-30.3%
Free Cash Flow
$176M
Total Assets
$11.4B
Previous year: $11.5B
-0.8%

Kilroy Realty

Kilroy Realty

Kilroy Realty Revenue by Geographic Location

Forward Guidance

The Company is providing an updated Nareit-defined FFO per diluted share guidance for the full year 2024 of $4.38 to $4.44 per share, with a midpoint of $4.41 per share.

Positive Outlook

  • Low End Net income available to common stockholders per share - diluted $1.61
  • High End Net income available to common stockholders per share - diluted $1.66
  • Low End Funds From Operations $526,650
  • High End Funds From Operations $533,750
  • High End Funds From Operations per common share/unit – diluted (3)$4.44

Challenges Ahead

  • Change in same store cash NOI (2)(3)(1.5%) to (2.0%)
  • General and administrative expenses$74 million to $76 million
  • Total development spending (4)$250 million to $275 million
  • Change in same store cash NOI (2)
  • Total development spending (4)

Revenue & Expenses

Visualization of income flow from segment revenue to net income