On July 31, 2024, Kilroy Realty Corp (KRC, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Kilroy Realty is a premier owner and landlord of approximately 17 million square feet of office space across Los Angeles, San Diego, the San Francisco Bay Area, Austin, Texas, and greater Seattle. The company operates as a real estate investment trust.
Financial Highlights
For Q2 2024, Kilroy Realty Corp (KRC, Financial) reported revenues of $280.7 million, surpassing the analyst estimate of $277.28 million. The company also reported net income available to common stockholders of $0.41 per diluted share, exceeding the estimated earnings per share of $0.40. Funds from operations (FFO) available to common stockholders and unitholders were $132.6 million, or $1.10 per diluted share.
Leasing and Occupancy
As of June 30, 2024, Kilroy Realty's stabilized portfolio was 83.7% occupied and 85.4% leased. The company signed approximately 235,000 square feet of leases during the quarter, including 122,000 square feet of new leasing on previously vacant space, 55,000 square feet of new leasing on currently occupied space, and 58,000 square feet of renewal leasing. Notably, GAAP rents increased by 7.2%, while cash rents decreased by 4.6% from prior levels on second-generation leasing, excluding short-term leasing.
Balance Sheet and Liquidity
As of June 30, 2024, Kilroy Realty Corp (KRC, Financial) had approximately $1.9 billion of total liquidity, comprising approximately $0.8 billion of cash and approximately $1.1 billion available under the unsecured revolving credit facility. The company declared and paid a regular quarterly cash dividend of $0.54 per share, equivalent to an annual rate of $2.16.
Recent Developments
In July 2024, Kilroy Realty signed approximately 184,000 square feet of leases, inclusive of 46,000 square feet of short-term renewal leases. The company also provided an updated Nareit-defined FFO per diluted share guidance for the full year 2024 of $4.21 to $4.31 per share, with a midpoint of $4.26 per share.
Income Statement and Key Metrics
| Metric | Q2 2024 | Analyst Estimate |
|---|---|---|
| Revenue | $280.7 million | $277.28 million |
| Net Income per Share | $0.41 | $0.40 |
| FFO per Share | $1.10 | N/A |
Analysis
Kilroy Realty Corp (KRC, Financial) demonstrated robust financial performance in Q2 2024, exceeding both revenue and earnings estimates. The company's ability to maintain high occupancy and leasing rates, coupled with a strong balance sheet, positions it well in the competitive REIT sector. The increase in GAAP rents and the strategic signing of new and renewal leases indicate effective management and a positive outlook for future growth.
Value investors and potential GuruFocus.com members are encouraged to delve deeper into Kilroy Realty Corp (KRC, Financial)'s financials and strategic initiatives by accessing the full 8-K filing.
Explore the complete 8-K earnings release (here) from Kilroy Realty Corp for further details.
