Kilroy Realty Q2 revenue beats estimates

Overview

• Kilroy Realty Q2 revenue rises to $289.9 mln, beating analyst expectations

• Net income for Q2 increases to $68.4 mln, EPS at $0.57

• FFO for Q2 reaches $135.9 mln, up from $132.6 mln last year

Outlook

• Kilroy updates full-year 2025 FFO guidance to $4.05-$4.15 per share

• Company expects 2025 net income per share to be $1.44-$1.54

• Kilroy sees Average full year occupancy between 80.5% and 81.5%

• Company anticipates Same Property Cash Net Operating Income growth of down 1.0% to down 2.0%

Result Drivers

• LEASING MOMENTUM - Kilroy executed over 400,000 square feet of leases, including new and renewal leases, driving revenue growth

• CAPITAL RECYCLING - "Significant" progress in monetizing land and disposing of non-strategic operating properties, contributed to financial results

• RENT DECLINE - GAAP and cash rents on leases signed decreased by 11.2% and 15.2%, respectively, reflecting market conditions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 11 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy."

• Wall Street's median 12-month price target for Kilroy Realty Corp is $35.00, about 5.9% below its July 25 closing price of $37.08

• The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nBw21VtmRa