Summary
Kilroy Realty Corporation (KRC) Q3 2025 Earnings Call Transcript
Kilroy Realty Corporation (NYSE:KRC ) Q3 2025 Earnings Call October 28, 2025 1:00 PM EDT Company Participants Douglas Bettisworth Angela Aman - CEO & Director Eliott Trencher - EVP & Chief Investment Officer Jeffrey Kuehling - Treasurer, Executive VP & CFO A. Paratte - Executive VP & Chief Leasing Officer Conference Call Participants Nicholas Yulico - Scotiabank Global Banking and Markets, Research Division Jana Galan - BofA Securities, Research Division Steve Sakwa - Evercore ISI Institutional Equities, Research Division Seth Bergey - Citigroup Inc., Research Division Anthony Paolone - JPMorgan Chase & Co, Research Division Brendan Lynch - Barclays Bank PLC, Research Division John Kim - BMO Capital Markets Equity Research Upal Rana - KeyBanc Capital Markets Inc., Research Division Caitlin Burrows - Goldman Sachs Group, Inc., Research Division Michael Carroll - RBC Capital Markets, Research Division Omotayo Okusanya - Deutsche Bank AG, Research Division Dylan Burzinski - Green Street Advisors, LLC, Research Division Presentation Operator Hello, everyone, and welcome to the KRC Third Quarter '25 Earnings Conference Call.
Kilroy Realty (KRC) Q3 FFO and Revenues Surpass Estimates
Kilroy Realty (KRC) came out with quarterly funds from operations (FFO) of $1.09 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to FFO of $1.17 per share a year ago.
Kilroy Realty: Q2 Not As Strong As It Seems
Kilroy Realty's Q2 results beat expectations, aided by one-time items and improved leasing, but fundamental occupancy and rent growth remain weak. Portfolio sales provide capital flexibility, but high debt and rising refinancing costs continue to pressure long-term cash flow and valuation. Guidance appears higher, but is flattered by nonrecurring benefits; underlying fundamentals suggest ongoing gradual declines in occupancy and FFO.
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Kilroy Realty Corporation Profile
| Office REITs Industry | Real Estate Sector | Angela M. Aman CEO | NYSE Exchange | 49427F108 CUSIP |
| US Country | 229 Employees | 31 Dec 2025 Last Dividend | 22 Feb 2013 Last Split | 28 Jan 1997 IPO Date |
Overview
Kilroy Realty Corporation (KRC) distinguishes itself as a forefront landlord and developer within the United States, with a significant presence across major urban centers such as San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle, and Austin. The company prides itself on a legacy spanning over seven decades in the real estate domain, focusing on the development, acquisition, and management of office, life science, and mixed-use projects. As a publicly traded Real Estate Investment Trust (REIT) and a member of the S&P MidCap 400 Index, Kilroy has established a commendable reputation for its commitment to sustainability, innovative building operations, and architectural design excellence. This approach has positioned Kilroy as a pioneer in fostering the modern, sustainable real estate industry, ultimately enriching the work environments for leading companies across technology, entertainment, life science, and business services sectors. As of the end of December 2023, the company's achievements in developing productive and creative spaces are reflected in its stabilized portfolio, which comprises about 17.0 million square feet majorly allocated to office and life science use, boasting an 85.0% occupancy rate and 86.4% lease percentage.
Products and Services
- Office and Life Science Space
Kilroy's core offering includes around 17.0 million square feet of primarily office and life science space, designed to cater to the needs of top-tier technology, entertainment, life science, and business services companies. These spaces are tailored to foster innovation, productivity, and sustainable business practices. With an occupancy rate of 85.0% and a lease rate of 86.4% as of December 31, 2023, these properties represent Kilroy's commitment to creating environments that align with contemporary business needs and environmental considerations.
- Residential Units
The corporation also extends its real estate expertise into the residential sector, managing approximately 1,000 units located in strategic urban locales such as Hollywood and San Diego. These units, which achieved a commendable quarterly average occupancy rate of 92.5%, showcase Kilroy's ability to craft living spaces that resonate with modern lifestyle expectations, emphasizing location, convenience, and community.
- Life Science Redevelopment Projects
Kilroy is actively involved in the redevelopment of life science spaces, with two ongoing projects that encapsulate its vision for the future of sustainable and innovative work environments. These projects, encompassing approximately 100,000 square feet, are set to incur an estimated redevelopment cost of $80.0 million. This initiative underscores Kilroy's dedication to advancing the life science industry through facilities that are designed to facilitate cutting-edge research and development activities.
- Development Project
Emphasizing its role as a key player in the real estate development sector, Kilroy is undertaking a significant development project involving approximately 875,000 square feet, with an ambitious total estimated investment of $1.0 billion. This project exemplifies the company’s commitment to innovation, sustainability, and the creation of spaces that meet the evolving demands of modern businesses and communities.
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