Kilroy Realty Corporation Reports Third Quarter Financial Results
Kilroy Realty (NYSE: KRC) reported its Q3 2024 financial results with revenues growing 2.2% to $289.9 million compared to Q3 2023. Net income per diluted share was $0.44, down from $0.45 in Q3 2023. Funds from operations (FFO) increased 4.5% to $140.4 million, or $1.17 per diluted share. The company's stabilized portfolio was 84.3% occupied and 85.8% leased. During Q3, KRC signed approximately 436,000 square feet of leases and completed the acquisition of Junction at Del Mar for $35.0 million. The company updated its full-year 2024 FFO guidance to $4.38-$4.44 per share.
Kilroy Realty (NYSE: KRC) ha riportato i risultati finanziari per il terzo trimestre del 2024, con ricavi in crescita del 2,2% a 289,9 milioni di dollari rispetto al terzo trimestre del 2023. L'utile netto per azione diluita è stato di 0,44 dollari, in calo rispetto a 0,45 dollari nel terzo trimestre del 2023. I fondi dalle operazioni (FFO) sono aumentati del 4,5% a 140,4 milioni di dollari, ossia 1,17 dollari per azione diluita. Il portafoglio stabilizzato della società era occupato all'84,3% e locato all'85,8%. Durante il terzo trimestre, KRC ha firmato circa 436.000 piedi quadrati di locazioni e ha completato l'acquisizione di Junction at Del Mar per 35,0 milioni di dollari. La società ha aggiornato la sua previsione FFO per l'intero anno 2024 a 4,38-4,44 dollari per azione.
Kilroy Realty (NYSE: KRC) reportó sus resultados financieros del tercer trimestre de 2024, con ingresos que crecieron un 2.2% a 289.9 millones de dólares en comparación con el tercer trimestre de 2023. El ingreso neto por acción diluida fue de 0.44 dólares, una caída desde 0.45 dólares en el tercer trimestre de 2023. Los fondos de operaciones (FFO) aumentaron un 4.5% a 140.4 millones de dólares, o 1.17 dólares por acción diluida. El portafolio estabilizado de la compañía tenía un 84.3% de ocupación y un 85.8% de arrendamiento. Durante el tercer trimestre, KRC firmó aproximadamente 436,000 pies cuadrados de contratos y completó la adquisición de Junction at Del Mar por 35.0 millones de dólares. La empresa actualizó su guía de FFO para todo el año 2024 a 4.38-4.44 dólares por acción.
Kilroy Realty (NYSE: KRC)는 2024년 3분기 재무 결과를 보고했으며, 2023년 3분기와 비교하여 수익이 2.2% 증가하여 2억 8,990만 달러에 이르렀습니다. 희석 주당 순이익은 0.44달러로, 2023년 3분기 0.45달러에서 감소했습니다. 운영 자금(FFO)는 4.5% 증가하여 1억 4,040만 달러, 즉 희석 주당 1.17달러에 도달했습니다. 회사의 안정화된 포트폴리오는 84.3%가 점유되고 85.8%가 임대되었습니다. 3분기 동안 KRC는 약 436,000평방피트의 임대 계약을 체결하고 3,500만 달러에 Junction at Del Mar를 인수했습니다. 회사는 2024년 전체 연도 FFO 가이드를 주당 4.38-4.44달러로 업데이트했습니다.
Kilroy Realty (NYSE: KRC) a annoncé ses résultats financiers pour le troisième trimestre 2024, avec des revenus en hausse de 2,2% à 289,9 millions de dollars par rapport au troisième trimestre 2023. Le bénéfice net par action diluée était de 0,44 dollar, en baisse par rapport à 0,45 dollar au troisième trimestre 2023. Les fonds provenant des opérations (FFO) ont augmenté de 4,5% pour atteindre 140,4 millions de dollars, soit 1,17 dollar par action diluée. Le portefeuille stabilisé de la société était occupé à 84,3% et loué à 85,8%. Au cours du troisième trimestre, KRC a signé environ 436 000 pieds carrés de baux et a complété l'acquisition de Junction at Del Mar pour 35,0 millions de dollars. La société a mis à jour son estimation de FFO pour l'année entière 2024 à 4,38-4,44 dollars par action.
Kilroy Realty (NYSE: KRC) berichtete über die Finanzzahlen für das dritte Quartal 2024, wobei der Umsatz um 2,2% auf 289,9 Millionen Dollar im Vergleich zum dritten Quartal 2023 anstieg. Der Nettogewinn pro verwässerter Aktie lag bei 0,44 Dollar, ein Rückgang von 0,45 Dollar im dritten Quartal 2023. Die Mittel aus Betrieben (FFO) erhöhten sich um 4,5% auf 140,4 Millionen Dollar oder 1,17 Dollar pro verwässerter Aktie. Das stabilisierte Portfolio des Unternehmens war zu 84,3% besetzt und zu 85,8% vermietet. Im dritten Quartal unterzeichnete KRC Verträge über etwa 436.000 Quadratfuß und schloss den Erwerb von Junction at Del Mar für 35,0 Millionen Dollar ab. Das Unternehmen aktualisierte seine FFO-Prognose für das gesamte Jahr 2024 auf 4,38-4,44 Dollar pro Aktie.
- Revenue growth of 2.2% to $289.9 million in Q3 2024
- FFO increased 4.5% to $140.4 million ($1.17 per share)
- GAAP rents on signed leases increased 26.0% from prior levels
- Strong liquidity position with $1.7 billion total available
- Upward revision of full-year 2024 FFO guidance
- Net income per share declined to $0.44 from $0.45 year-over-year
- Portfolio occupancy at 84.3%, indicating significant vacancy
- DermTech bankruptcy impact on leasing
- Same store cash NOI projected to decline 1.5% to 2.0% for 2024
Insights
Kilroy Realty's Q3 results show mixed performance with some concerning metrics. While FFO increased by
The DermTech bankruptcy and subsequent short-term lease arrangement signals potential tenant instability. However, positive signs include strong leasing spreads with
The strategic acquisition of Junction at Del Mar for
The company's robust liquidity position of
Financial Results
-
Revenues grew
2.2% to for the quarter ended September 30, 2024, as compared to$289.9 million for the quarter ended September 30, 2023$283.6 million -
Net income available to common stockholders of
per diluted share, as compared to$0.44 per diluted share for the quarter ended September 30, 2023$0.45 -
Funds from operations available to common stockholders and unitholders (“FFO”) of
, or$140.4 million per diluted share, an increase of$1.17 4.5% as compared to , or$134.0 million per diluted share, for the quarter ended September 30, 2023$1.12
“I’m pleased to report on a strong quarter of execution across our platform as we continue to navigate the recovery that is taking hold in our markets,” commented Angela Aman, CEO. “In addition to solid third quarter leasing activity, we have also been active on the capital allocation front, acquiring a small office campus located strategically adjacent to our One Paseo mixed-use project in San Diego.”
Leasing and Occupancy
-
Stabilized portfolio was
84.3% occupied and85.8% leased at September 30, 2024 -
During the quarter ended September 30, 2024, signed approximately 436,000 square feet of leases, comprised of 48,000 square feet of new leasing on previously vacant space, 38,000 square feet of new leasing on currently occupied space, and 350,000 square feet of renewal leasing
- Includes 209,000 square feet of short-term leasing, primarily comprised of 198,000 square feet of short-term renewal leasing
- During the quarter ended September 30, 2024, DermTech, which filed for bankruptcy during the quarter ended June 30, 2024, rejected its lease and Kilroy executed a 110,000 square foot short-term lease with the successor entity to facilitate DermTech’s interim operations. This lease has been excluded from the leasing productivity statistics above
-
During the quarter ended September 30, 2024, GAAP rents on signed leases increased
26.0% and cash rents increased7.1% from prior levels on second generation leasing, excluding short-term leasing
Acquisition Activity
-
In September, completed the acquisition of Junction at
Del Mar , an approximately 104,000 square foot office property, comprised of two buildings in theDel Mar submarket ofSan Diego , for . The buildings, which are located adjacent to the Company’s One Paseo mixed-use project, are$35.0 million 96% leased with a weighted average lease term of 4.7 years
Balance Sheet / Liquidity
-
In September, repaid the full amount outstanding on the
term loan, which had an initial maturity date of October 3, 2024$120.0 million -
As of September 30, 2024, the Company had approximately
of total liquidity comprised of approximately$1.7 billion of cash and approximately$0.6 billion available under the fully undrawn unsecured revolving credit facility$1.1 billion
Dividend
-
The Board declared and paid a regular quarterly cash dividend on its common stock of
per share, equivalent to an annual rate of$0.54 $2.16 - The dividend was paid on October 9, 2024 to stockholders of record on September 30, 2024 (the ex-dividend date)
Net Income Available to Common Stockholders / FFO Guidance and Outlook
The Company is providing an updated Nareit-defined FFO per diluted share guidance for the full year 2024 of
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Full Year 2024 Range
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Full Year 2024 Range
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Low End |
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High End |
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Low End |
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High End |
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$ and shares/units in thousands, except per share/unit amounts |
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Net income available to common stockholders per share - diluted |
$ |
1.50 |
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$ |
1.59 |
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$ |
1.61 |
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$ |
1.66 |
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Weighted average common shares outstanding - diluted (1) |
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118,000 |
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118,000 |
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118,150 |
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118,150 |
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Net income available to common stockholders |
$ |
177,000 |
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$ |
188,000 |
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$ |
190,000 |
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$ |
196,000 |
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Adjustments: |
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Net income attributable to noncontrolling common units of the Operating Partnership |
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1,800 |
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1,900 |
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1,900 |
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2,000 |
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Net income attributable to noncontrolling interests in consolidated property partnerships |
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20,500 |
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21,000 |
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20,250 |
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20,750 |
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Depreciation and amortization of real estate assets |
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338,000 |
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339,000 |
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346,000 |
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347,000 |
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Gains on sales of depreciable real estate |
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— |
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— |
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— |
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— |
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Funds From Operations attributable to noncontrolling interests in consolidated property partnerships |
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(31,500 |
) |
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(32,000 |
) |
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(31,500 |
) |
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(32,000 |
) |
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Funds From Operations (2) |
$ |
505,800 |
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$ |
517,900 |
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$ |
526,650 |
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$ |
533,750 |
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Weighted average common shares/units outstanding – diluted (3) |
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120,200 |
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120,200 |
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120,250 |
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120,250 |
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Funds From Operations per common share/unit – diluted (3) |
$ |
4.21 |
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$ |
4.31 |
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$ |
4.38 |
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$ |
4.44 |
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Key Assumptions |
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July 2024 Assumptions |
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October 2024 Assumptions |
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Change in same store cash NOI (4) |
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( |
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( |
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Average full year occupancy |
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General and administrative expenses |
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Total development spending (5) |
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Weighted average common shares/units outstanding – diluted (in thousands) (3) |
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120,200 |
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120,225 |
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________________________ |
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(1) |
Calculated based on estimated weighted average shares outstanding, including non-participating share-based awards and the dilutive impact of contingently issuable shares. |
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(2) |
See management statement for Funds From Operations at end of release. |
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(3) |
Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, and the dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders. |
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(4) |
See management statement for Same Store Cash Net Operating Income on page 32 of our Supplemental Financial Report furnished on Form 8-K with this press release. |
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(5) |
Remaining 2024 development spending is |
The Company’s guidance estimates for the full year 2024, and the reconciliation of net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this press release, reflect 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 press release. These guidance estimates do not include the impact on the 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. There can be no assurance that the Company’s actual results will not differ materially from these estimates.
Conference Call and Audio Webcast
The Company’s management will discuss third quarter results and the current business environment during the Company’s October 29, 2024 earnings conference call. The call will begin at 10:00 a.m. Pacific Time and last approximately one hour. To participate and obtain conference call dial-in details, register by using the following link, https://www.netroadshow.com/events/login?show=f1c41247&confId=58186. Those interested in listening via the Internet can access the conference call at https://events.q4inc.com/attendee/193901324. It may be necessary to download audio software to hear the conference call.
About Kilroy Realty Corporation
Kilroy Realty Corporation (NYSE: KRC, the “Company”, “Kilroy”) is a leading
The Company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring, and managing office, life science, and mixed-use projects.
As of September 30, 2024, Kilroy’s stabilized portfolio totaled approximately 17.1 million square feet of primarily office and life science space that was
A Leader in Sustainability and Commitment to Corporate Social Responsibility
Kilroy has a longstanding commitment to sustainability and continues to be a recognized leader in our sector. For over a decade, the Company and its sustainability initiatives have been recognized with numerous honors, including earning the GRESB five star rating and being named a sector and regional leader in the
Kilroy is proud to have achieved carbon neutral operations across our portfolio since 2020. The Company also has a longstanding commitment to maintain high levels of LEED, Fitwel, and ENERGY STAR certifications across the portfolio.
A significant part of the Company’s foundation is its commitment to enhancing employee growth, satisfaction, and wellness while maintaining a diverse and thriving culture. For four consecutive years, the Company has been named to Bloomberg’s Gender Equality Index, which recognizes companies committed to supporting gender equality through policy development, representation, and transparency.
More information is available at http://www.kilroyrealty.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results, and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of
KILROY REALTY CORPORATION |
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SUMMARY OF QUARTERLY RESULTS |
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(unaudited; in thousands, except per share data) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenues |
$ |
289,938 |
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$ |
283,594 |
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$ |
849,250 |
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$ |
860,678 |
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Net income available to common stockholders |
$ |
52,378 |
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$ |
52,762 |
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$ |
151,509 |
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$ |
164,957 |
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Weighted average common shares outstanding – basic |
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117,830 |
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117,185 |
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117,516 |
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117,133 |
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Weighted average common shares outstanding – diluted |
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118,244 |
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117,495 |
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117,955 |
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117,411 |
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Net income available to common stockholders per share – basic |
$ |
0.44 |
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$ |
0.45 |
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$ |
1.27 |
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$ |
1.40 |
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Net income available to common stockholders per share – diluted |
$ |
0.44 |
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$ |
0.45 |
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$ |
1.27 |
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$ |
1.40 |
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Funds From Operations (1)(2) |
$ |
140,448 |
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$ |
134,047 |
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$ |
406,758 |
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$ |
421,859 |
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Weighted average common shares/units outstanding – basic (3) |
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119,702 |
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118,934 |
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119,798 |
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118,894 |
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Weighted average common shares/units outstanding – diluted (4) |
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120,115 |
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119,245 |
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120,237 |
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119,172 |
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Funds From Operations per common share/unit – basic (2) |
$ |
1.17 |
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$ |
1.13 |
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$ |
3.40 |
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$ |
3.55 |
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Funds From Operations per common share/unit – diluted (2) |
$ |
1.17 |
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$ |
1.12 |
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$ |
3.38 |
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$ |
3.54 |
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Common shares outstanding at end of period |
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118,047 |
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117,240 |
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Common partnership units outstanding at end of period |
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1,151 |
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1,151 |
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Total common shares and units outstanding at end of period |
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119,198 |
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118,391 |
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September 30,
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September 30,
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Stabilized office portfolio occupancy rates: (5) |
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76.7 |
% |
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81.2 |
% |
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87.9 |
% |
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86.1 |
% |
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91.1 |
% |
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91.1 |
% |
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80.4 |
% |
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83.5 |
% |
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74.2 |
% |
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— |
% |
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Weighted average total |
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84.3 |
% |
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86.2 |
% |
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Total square feet of stabilized office properties owned at end of period: (5) |
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4,338 |
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4,345 |
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2,877 |
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2,770 |
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6,171 |
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|
6,170 |
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||||
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2,996 |
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3,000 |
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759 |
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— |
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Total |
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17,141 |
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16,285 |
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________________________ |
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(1) |
Reconciliation of Net income available to common stockholders to Funds From Operations available to common stockholders and unitholders and management statement on Funds From Operations are included after the Consolidated Statements of Operations. |
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(2) |
Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders. |
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(3) |
Calculated based on weighted average shares outstanding, including participating share-based awards (i.e. nonvested stock and certain time-based restricted stock units) and assuming the exchange of all common limited partnership units outstanding. |
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(4) |
Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. |
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(5) |
Occupancy percentages and total square feet reported are based on the Company’s stabilized office portfolio for the periods presented. |
KILROY REALTY CORPORATION |
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CONSOLIDATED BALANCE SHEETS |
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(unaudited; in thousands) |
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September 30, 2024 |
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December 31, 2023 |
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ASSETS |
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REAL ESTATE ASSETS: |
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Land and improvements |
$ |
1,750,820 |
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$ |
1,743,170 |
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Buildings and improvements |
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8,573,332 |
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8,463,674 |
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Undeveloped land and construction in progress |
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2,254,628 |
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2,034,804 |
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Total real estate assets held for investment |
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12,578,780 |
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12,241,648 |
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Accumulated depreciation and amortization |
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(2,747,494 |
) |
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(2,518,304 |
) |
Total real estate assets held for investment, net |
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9,831,286 |
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9,723,344 |
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Cash and cash equivalents |
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625,395 |
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510,163 |
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Marketable securities |
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27,144 |
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284,670 |
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Current receivables, net |
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11,218 |
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13,609 |
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Deferred rent receivables, net |
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455,613 |
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|
460,979 |
|
Deferred leasing costs and acquisition-related intangible assets, net |
|
226,991 |
|
|
|
229,705 |
|
Right of use ground lease assets |
|
129,492 |
|
|
|
125,506 |
|
Prepaid expenses and other assets, net |
|
73,495 |
|
|
|
53,069 |
|
TOTAL ASSETS |
$ |
11,380,634 |
|
|
$ |
11,401,045 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
LIABILITIES: |
|
|
|
||||
Secured debt, net |
$ |
599,478 |
|
|
$ |
603,225 |
|
Unsecured debt, net |
|
4,401,678 |
|
|
|
4,325,153 |
|
Accounts payable, accrued expenses and other liabilities |
|
354,785 |
|
|
|
371,179 |
|
Ground lease liabilities |
|
128,606 |
|
|
|
124,353 |
|
Accrued dividends and distributions |
|
64,844 |
|
|
|
64,440 |
|
Deferred revenue and acquisition-related intangible liabilities, net |
|
151,670 |
|
|
|
173,638 |
|
Rents received in advance and tenant security deposits |
|
71,033 |
|
|
|
79,364 |
|
Total liabilities |
|
5,772,094 |
|
|
|
5,741,352 |
|
|
|
|
|
||||
EQUITY: |
|
|
|
||||
Stockholders’ Equity |
|
|
|
||||
Common stock |
|
1,181 |
|
|
|
1,173 |
|
Additional paid-in capital |
|
5,203,195 |
|
|
|
5,205,839 |
|
Retained earnings |
|
175,962 |
|
|
|
221,149 |
|
Total stockholders’ equity |
|
5,380,338 |
|
|
|
5,428,161 |
|
Noncontrolling Interests |
|
|
|
||||
Common units of the Operating Partnership |
|
52,441 |
|
|
|
53,275 |
|
Noncontrolling interests in consolidated property partnerships |
|
175,761 |
|
|
|
178,257 |
|
Total noncontrolling interests |
|
228,202 |
|
|
|
231,532 |
|
Total equity |
|
5,608,540 |
|
|
|
5,659,693 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
11,380,634 |
|
|
$ |
11,401,045 |
|
KILROY REALTY CORPORATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(unaudited; in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
REVENUES |
|
|
|
|
|
|
|
||||||||
Rental income |
$ |
285,951 |
|
|
$ |
280,681 |
|
|
$ |
836,760 |
|
|
$ |
852,094 |
|
Other property income |
|
3,987 |
|
|
|
2,913 |
|
|
|
12,490 |
|
|
|
8,584 |
|
Total revenues |
|
289,938 |
|
|
|
283,594 |
|
|
|
849,250 |
|
|
|
860,678 |
|
|
|
|
|
|
|
|
|
||||||||
EXPENSES |
|
|
|
|
|
|
|
||||||||
Property expenses |
|
63,593 |
|
|
|
59,445 |
|
|
|
180,192 |
|
|
|
168,233 |
|
Real estate taxes |
|
26,677 |
|
|
|
28,363 |
|
|
|
84,925 |
|
|
|
84,868 |
|
Ground leases |
|
2,977 |
|
|
|
2,390 |
|
|
|
8,725 |
|
|
|
7,172 |
|
General and administrative expenses (1) |
|
18,066 |
|
|
|
24,761 |
|
|
|
54,596 |
|
|
|
71,356 |
|
Leasing costs |
|
2,353 |
|
|
|
1,852 |
|
|
|
6,751 |
|
|
|
4,550 |
|
Depreciation and amortization |
|
91,879 |
|
|
|
85,224 |
|
|
|
267,061 |
|
|
|
269,262 |
|
Total expenses |
|
205,545 |
|
|
|
202,035 |
|
|
|
602,250 |
|
|
|
605,441 |
|
|
|
|
|
|
|
|
|
||||||||
OTHER INCOME (EXPENSES) |
|
|
|
|
|
|
|
||||||||
Interest income |
|
9,688 |
|
|
|
7,015 |
|
|
|
32,962 |
|
|
|
11,896 |
|
Interest expense |
|
(36,408 |
) |
|
|
(29,837 |
) |
|
|
(112,042 |
) |
|
|
(81,891 |
) |
Total other expenses |
|
(26,720 |
) |
|
|
(22,822 |
) |
|
|
(79,080 |
) |
|
|
(69,995 |
) |
|
|
|
|
|
|
|
|
||||||||
NET INCOME |
|
57,673 |
|
|
|
58,737 |
|
|
|
167,920 |
|
|
|
185,242 |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling common units of the Operating Partnership |
|
(509 |
) |
|
|
(515 |
) |
|
|
(1,469 |
) |
|
|
(1,612 |
) |
Net income attributable to noncontrolling interests in consolidated property partnerships |
|
(4,786 |
) |
|
|
(5,460 |
) |
|
|
(14,942 |
) |
|
|
(18,673 |
) |
Total income attributable to noncontrolling interests |
|
(5,295 |
) |
|
|
(5,975 |
) |
|
|
(16,411 |
) |
|
|
(20,285 |
) |
|
|
|
|
|
|
|
|
||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |
$ |
52,378 |
|
|
$ |
52,762 |
|
|
$ |
151,509 |
|
|
$ |
164,957 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding – basic |
|
117,830 |
|
|
|
117,185 |
|
|
|
117,516 |
|
|
|
117,133 |
|
Weighted average shares of common stock outstanding – diluted |
|
118,244 |
|
|
|
117,495 |
|
|
|
117,955 |
|
|
|
117,411 |
|
|
|
|
|
|
|
|
|
||||||||
Net income available to common stockholders per share – basic |
$ |
0.44 |
|
|
$ |
0.45 |
|
|
$ |
1.27 |
|
|
$ |
1.40 |
|
Net income available to common stockholders per share – diluted |
$ |
0.44 |
|
|
$ |
0.45 |
|
|
$ |
1.27 |
|
|
$ |
1.40 |
|
________________________ |
||
(1) |
The three and nine months ended September 30, 2023 includes |
KILROY REALTY CORPORATION |
|||||||||||||||
FUNDS FROM OPERATIONS |
|||||||||||||||
(unaudited; in thousands, except per share data) |
|||||||||||||||
|
|
|
|||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income available to common stockholders |
$ |
52,378 |
|
|
$ |
52,762 |
|
|
$ |
151,509 |
|
|
$ |
164,957 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling common units of the Operating Partnership |
|
509 |
|
|
|
515 |
|
|
|
1,469 |
|
|
|
1,612 |
|
Net income attributable to noncontrolling interests in consolidated property partnerships |
|
4,786 |
|
|
|
5,460 |
|
|
|
14,942 |
|
|
|
18,673 |
|
Depreciation and amortization of real estate assets |
|
90,243 |
|
|
|
83,518 |
|
|
|
262,292 |
|
|
|
263,662 |
|
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships |
|
(7,468 |
) |
|
|
(8,208 |
) |
|
|
(23,454 |
) |
|
|
(27,045 |
) |
Funds From Operations(1)(2)(3) |
$ |
140,448 |
|
|
$ |
134,047 |
|
|
$ |
406,758 |
|
|
$ |
421,859 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares/units outstanding – basic (4) |
|
119,702 |
|
|
|
118,934 |
|
|
|
119,798 |
|
|
|
118,894 |
|
Weighted average common shares/units outstanding – diluted (5) |
|
120,115 |
|
|
|
119,245 |
|
|
|
120,237 |
|
|
|
119,172 |
|
|
|
|
|
|
|
|
|
||||||||
Funds From Operations per common share/unit – basic (2) |
$ |
1.17 |
|
|
$ |
1.13 |
|
|
$ |
3.40 |
|
|
$ |
3.55 |
|
Funds From Operations per common share/unit – diluted (2) |
$ |
1.17 |
|
|
$ |
1.12 |
|
|
$ |
3.38 |
|
|
$ |
3.54 |
|
________________________ |
||
(1) |
We calculate Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of Nareit. The White Paper defines FFO as net income or loss (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO. Our calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. We also add back net income attributable to noncontrolling common units of the Operating Partnership because we report FFO attributable to common stockholders and common unitholders. |
|
|
|
|
|
We believe that FFO is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs. |
|
|
|
|
|
Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing, and investing activities than the required GAAP presentations alone would provide. |
|
|
|
|
|
However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations. |
|
|
|
|
(2) |
Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders. |
|
|
|
|
(3) |
FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of |
|
|
|
|
(4) |
Calculated based on weighted average shares outstanding, including participating share-based awards (i.e. certain time-based restricted stock units) and assuming the exchange of all common limited partnership units outstanding. |
|
|
|
|
(5) |
Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028090358/en/
Jeffrey Kuehling
Executive Vice President,
Chief Financial Officer
(310) 481-8440
or
Taylor Friend
Senior Vice President,
Capital Markets and Treasurer
(310) 481-8574
Source: Kilroy Realty Corporation
FAQ
What was Kilroy Realty's (KRC) revenue growth in Q3 2024?
What is KRC's updated FFO guidance for full-year 2024?
How much new leasing did KRC sign in Q3 2024?