Dec 31, 2023

Kilroy Realty Q4 2023 Earnings Report

Kilroy Realty's Q4 2023 financial performance reflected a mix of challenges and strategic advancements.

Key Takeaways

Kilroy Realty Corporation reported Q4 2023 revenues of $269.0 million and net income available to common stockholders of $47.3 million, or $0.40 per diluted share. FFO per diluted share was $1.08. The stabilized portfolio was 85.0% occupied and 86.4% leased at quarter-end.

Revenues reached $269.0 million.

Net income available to common stockholders per diluted share was $0.40.

FFO per diluted share amounted to $1.08.

The stabilized portfolio was 85.0% occupied and 86.4% leased at quarter-end.

Total Revenue
$269M
Previous year: $282M
-4.5%
EPS
$1.08
Previous year: $1.17
-7.7%
Average Residential Occupancy
92.5%
Previous year: 93.5%
-1.1%
Occupancy
85%
Previous year: 91.6%
-7.2%
Leased
86.4%
Previous year: 92.9%
-7.0%
Gross Profit
$183M
Previous year: $198M
-7.9%
Cash and Equivalents
$795M
Previous year: $347M
+128.8%
Total Assets
$11.4B
Previous year: $10.8B
+5.6%

Kilroy Realty

Kilroy Realty

Kilroy Realty Revenue by Geographic Location

Forward Guidance

The Company is providing Nareit-defined FFO per diluted share guidance for the full year 2024 of $4.10 to $4.25 per share with a midpoint of $4.18 per share.

Positive Outlook

  • Net income available to common stockholders per share - diluted: $1.45 - $1.61
  • Funds From Operations: $493,400 - $511,000
  • FFO per common share/unit - diluted: $4.10 - $4.25
  • Total development spending: $200 million to $300 million
  • Weighted average common shares and units outstanding - diluted: 120,250

Challenges Ahead

  • Change in same store cash NOI: (4.0%) to (6.0%)
  • Average full year occupancy: 82.5% to 84.0%
  • General and administrative expenses: $72 million to $80 million
  • There can be no assurance that the Company’s actual results will not differ materially from these estimates.
  • These guidance estimates do not include the impact on Company’s operating results from potential future acquisitions, dispositions (including any associated gains or losses), capital markets activity, impairment charges or any events outside of the Company’s control, as the timing and magnitude of any such events are not known at the time the company provides guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income