Kilroy Realty Q3 revenue beats on increased rental rates
Overview
US office and life science landlord's Q3 revenue fell yr/yr but beat analyst expectations
Q3 net income and EPS declined sharply from prior year
Company signed over 800,000 sq ft of leases, with occupancy gains in all regions
Outlook
Kilroy updates 2026 FFO per share guidance to $3.55-$3.59 from $3.49-$3.63
Company expects 2026 net income per diluted share of $0.23-$0.27
Kilroy projects 2026 average occupancy of 77.0%-77.5%
Result Drivers
LEASING VOLUME - Co said over 800,000 sq ft of leases were signed in Q3, with occupancy gains in all regions and strong re-leasing spreads
RENTAL RATE INCREASES - Co reported GAAP and cash rents on new leases rose 30.6% and 9.7% respectively on Second Generation leasing, excluding short-term deals
RENEWALS - Q3 included a major 12-year, 243,000 sq ft renewal with Box, Inc.
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $271.60 mln | $267.45 mln (7 Analysts) |
Q3 EPS | $0.13 | ||
Q3 Net Income | $15.50 mln | ||
Q3 FFO | $104.60 mln | ||
Q3 Dividend | $0.54 |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "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 Corporation is $38.00, about 10.4% above its October 21 closing price of $34.43
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 43 three months ago
Reuters Recommended Reads
Oct 21 - EastGroup Properties Q3 FFO per share rises 7.9% on rent increase
Oct 21 - SL Green Realty Q3 net income jumps, lifts FY profit guidance
Oct 21 - Brandywine Realty Trust Q3 net loss narrows on higher property sales
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)