Q3 2024 Kilroy Realty Corp Earnings Call Transcript
Key Points
- Kilroy Realty Corp (KRC) reported a strong third quarter with FFO of $1.17 per share, a sequential increase of $0.07.
- The company increased its full-year FFO guidance by $0.15 per share at the midpoint, reflecting confidence in future performance.
- KRC signed approximately 436,000 square feet of leases during the quarter, including notable renewals with SAP and new leases with NVIDIA.
- The company reported a 75 basis point increase in the midpoint of its average occupancy guidance to 84%, driven by recent leasing activity.
- KRC completed its first acquisition since 2021, purchasing Junction at Del Mar, which is 96% leased and offers potential for future redevelopment.
- The short-term leasing activity includes tenants that may vacate or significantly downsize, potentially impacting future occupancy rates.
- The Los Angeles market remains soft, with aggregate demand still below pre-pandemic levels.
- The company faces a challenging transaction market, with financing markets still improving but not fully recovered.
- KRC's development spending is expected to moderate in 2025, potentially impacting growth prospects.
- The company is working on monetizing land parcels, but the process is expected to take time, delaying potential capital inflows.
Hello, everyone and thank you for joining the KRC 3Q '24 earnings conference call. My name is Harry and I'll be coordinating your call today. (Operator Instructions)
It is now my pleasure to hand you over to your host, Taylor Friend, Senior Vice President, Capital Markets and Treasurer to begin. Please go ahead.
Good morning, everyone. Thank you for joining us. On the call with me today are Angela Aman, CEO; Jeffrey Kuehling, EVP, CFO; and Eliott Trencher, EVP, CIO. In addition, Justin Smart, President; and Rob Paratte, EVP, Chief Leasing Officer will be available for Q&A.
At the outset, I need to say that some of the information we will be discussing during this call is forward-looking in nature. Please refer to our supplemental package for a statement regarding the forward-looking information on this call and in the supplemental.
This call is being webcast live on our website and will be available for replay for the next eight days. Our
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