Kilroy Realty Q3 revenue beats on increased rental rates

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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