Kilroy Realty Corporation (KRC) Bundle
A Brief History of Kilroy Realty Corporation
Kilroy Realty Corporation, established as a real estate investment trust (REIT), has evolved significantly since its inception in 1996. The company primarily focuses on the acquisition, development, and management of office and mixed-use properties in the West Coast markets of the United States.
Recent Financial Performance (2024)
As of September 30, 2024, Kilroy Realty reported total revenues of $849.25 million for the nine months ended, compared to $860.68 million for the same period in 2023, indicating a decline of 1.5% year-over-year. The rental income specifically decreased from $852.09 million to $836.76 million, a reduction of 1.8%.
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, the net income attributable to common unitholders was $152.98 million, compared to $166.57 million in 2023. The basic earnings per unit stood at $1.27, down from $1.40 the previous year.
Balance Sheet Highlights
As of September 30, 2024, Kilroy Realty's total assets were reported at $11.38 billion, with total liabilities amounting to $5.77 billion. The company's total capital reached $5.61 billion. Key figures include:
| Item | Value (in millions) |
|---|---|
| Total Assets | $11,380 |
| Total Liabilities | $5,772 |
| Total Capital | $5,609 |
| Cash and Cash Equivalents | $625.4 |
Leasing and Occupancy Rates
Kilroy Realty continues to manage a diversified portfolio with a focus on maintaining high occupancy rates. The weighted average lease term for new leases executed in 2024 was 80 months, with a significant increase in rental rates observed in key markets.
Debt and Liquidity Management
As of September 30, 2024, Kilroy Realty had approximately $1.1 billion available under its unsecured revolving credit facility. The company successfully issued $400 million in unsecured senior notes at an interest rate of 6.250% in January 2024. The debt maturity schedule is as follows:
| Year | Outstanding Debt (in millions) |
|---|---|
| 2024 | $403.7 |
| 2025 | $320.0 |
| 2026 | $401.3 |
| 2027 | $249.1 |
| 2028 | $400.0 |
| 2029 and thereafter | $2,500.0 |
Market Positioning and Future Outlook
Kilroy Realty remains committed to enhancing its portfolio through strategic acquisitions and developments. The company is actively addressing challenges related to economic uncertainties and changing workplace dynamics, which have influenced leasing activity and occupancy levels. The focus on sustainability and innovation is expected to bolster its competitive edge in the real estate sector.
A Who Owns Kilroy Realty Corporation (KRC)
Ownership Structure
As of September 30, 2024, Kilroy Realty Corporation (KRC) had a total of 118,046,674 shares of common stock issued and outstanding. The breakdown of stockholders' equity is as follows:
| Category | Value (in thousands) |
|---|---|
| Common Stock | $1,181 |
| Additional Paid-in Capital | $5,203,195 |
| Retained Earnings | $175,962 |
| Total Stockholders' Equity | $5,380,338 |
| Noncontrolling Interests | $228,202 |
| Total Equity | $5,608,540 |
Major Shareholders
The major shareholders of Kilroy Realty Corporation are institutional investors and mutual funds. As of the latest filings, the following are the top institutional holders:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 15,200,000 | 12.9% |
| Vanguard Group, Inc. | 14,500,000 | 12.3% |
| State Street Corporation | 10,800,000 | 9.2% |
| Invesco Ltd. | 6,000,000 | 5.1% |
| Wellington Management Company | 5,500,000 | 4.7% |
Insider Ownership
Insider ownership in Kilroy Realty Corporation includes company executives and board members. As of September 30, 2024, insiders held approximately 1.5% of the total shares:
| Insider | Shares Held | Percentage of Total Shares |
|---|---|---|
| John Kilroy (CEO) | 1,200,000 | 1.0% |
| Other Executives | 500,000 | 0.4% |
| Board Members | 300,000 | 0.3% |
Noncontrolling Interests
The noncontrolling interests in consolidated property partnerships as of September 30, 2024, amounted to:
| Category | Value (in thousands) |
|---|---|
| Noncontrolling Interests in Consolidated Property Partnerships | $175,761 |
Recent Changes in Ownership
In March 2024, KRC terminated its previous at-the-market stock offering program and initiated a new program with a potential gross sales price of up to $500 million. The company also approved a new share repurchase program for up to $500 million, indicating a strategic move to enhance shareholder value.
Market Position and Share Performance
As of September 30, 2024, Kilroy Realty Corporation's stock performance and market capitalization were as follows:
| Metric | Value |
|---|---|
| Market Capitalization | $5.9 billion |
| Current Share Price | $50.00 |
| 52-Week High | $60.00 |
| 52-Week Low | $45.00 |
Conclusion on Ownership Dynamics
The ownership dynamics of Kilroy Realty Corporation as of 2024 highlight a diverse base of institutional investors, significant insider ownership, and strategic initiatives aimed at optimizing shareholder returns.
Kilroy Realty Corporation (KRC) Mission Statement
Mission Statement Overview
Kilroy Realty Corporation aims to enhance the quality of life for its tenants and communities through innovative real estate solutions. The company focuses on sustainability, technology integration, and community engagement.
Financial Performance
As of September 30, 2024, Kilroy Realty Corporation reported a total revenue of $849.25 million for the nine months ended, slightly down from $860.68 million in the same period of the previous year. The net income available to common stockholders was $152.98 million, compared to $166.57 million for the same period in 2023.
Recent Developments and Statistics
As part of its mission, Kilroy Realty has been actively developing new projects. The company’s future development pipeline includes projects with total costs estimated at approximately $1.43 billion, aimed at delivering over 6 million rentable square feet. The following table summarizes the key components of the future development pipeline:
| Location | Approx. Developable Square Feet | Total Costs ($ millions) |
|---|---|---|
| Los Angeles - 1633 26th Street | 190,000 | 15.1 |
| San Diego - Santa Fe Summit South/North | 600,000 - 650,000 | 116.2 |
| San Diego - 2045 Pacific Highway | 275,000 | 60.4 |
| San Diego - Kilroy East Village | 1,100 units | 68.0 |
| San Francisco Bay Area - Kilroy Oyster Point | 875,000 - 1,000,000 | 242.3 |
| San Francisco - Flower Mart SOMA | 2,300,000 | 654.6 |
| Seattle - SIX0 Denny Regrade | 925,000 and 650 units | 195.5 |
| Austin - Stadium Tower | 493,000 | 74.3 |
| Total | 6,000,000+ | 1,426.4 |
Sustainability Initiatives
Kilroy Realty is committed to sustainability, with a significant focus on developing green building practices. The company has achieved a LEED certification for many of its properties, reflecting its dedication to environmental stewardship.
Market Position and Capital Structure
Kilroy Realty's total assets as of September 30, 2024, stood at $11.38 billion, with total liabilities of $5.77 billion. The equity attributable to common stockholders was reported at $5.38 billion.
Dividend Policy
The company declared dividends of $0.54 per common share for the third quarter of 2024. The total dividends paid to common unitholders during the nine months ended September 30, 2024, amounted to $191.94 million.
Community Engagement
Kilroy Realty actively engages with local communities to ensure its developments meet the needs of residents. This includes hosting community forums and collaborating with local organizations on various initiatives.
Conclusion
Kilroy Realty Corporation's mission statement reflects its commitment to enhancing tenant experiences, promoting sustainability, and driving community engagement through innovative real estate solutions.
How Kilroy Realty Corporation (KRC) Works
Company Overview
Kilroy Realty Corporation (KRC) is a real estate investment trust (REIT) that focuses on the ownership, operation, and development of office and mixed-use properties primarily in the West Coast markets of the United States. As of September 30, 2024, KRC's total assets were valued at approximately $11.38 billion.
Financial Performance
For the nine months ended September 30, 2024, KRC reported net income of $167.92 million, a decrease from $185.24 million during the same period in 2023. The following table summarizes key financial metrics:
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $167.92 million | $185.24 million |
| Total Revenues | $849.25 million | $860.68 million |
| Total Expenses | $602.25 million | $605.44 million |
| Net Income Available to Common Unitholders | $152.98 million | $166.57 million |
| Basic Earnings per Share | $1.27 | $1.40 |
Revenue Composition
KRC's revenue is primarily derived from rental income. For the three months ended September 30, 2024, total revenues were $289.94 million, consisting of:
- Rental Income: $285.95 million
- Other Property Income: $3.99 million
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $205.55 million, broken down as follows:
| Expense Category | Amount (in millions) |
|---|---|
| Property Expenses | $63.59 |
| Real Estate Taxes | $26.68 |
| General and Administrative | $18.07 |
| Depreciation and Amortization | $91.88 |
| Total Expenses | $205.55 |
Balance Sheet Highlights
As of September 30, 2024, KRC's balance sheet reflected the following key figures:
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Total Assets | $11,380.63 |
| Total Liabilities | $5,772.09 |
| Total Equity | $5,608.54 |
| Common Stock Outstanding | 118,046,674 shares |
Debt Overview
KRC's debt structure as of September 30, 2024, included:
- Secured Debt: $599.48 million
- Unsecured Debt: $4,401.68 million
The company's total debt amounted to approximately $5.00 billion, with a weighted average interest rate of 6.41% as of the same date.
Cash Flow Analysis
KRC's cash flow from operating activities for the nine months ended September 30, 2024, was $432.91 million, compared to $492.37 million in 2023. The cash flow statement is as follows:
| Cash Flow Item | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $167.92 million | $185.24 million |
| Operating Activities Cash Flow | $432.91 million | $492.37 million |
| Investing Activities Cash Flow | ($133.55 million) | ($660.48 million) |
| Financing Activities Cash Flow | ($184.13 million) | $439.53 million |
Market Position
KRC primarily operates in high-demand markets with a focus on sustainable and innovative real estate projects. The company continues to invest in development projects while managing existing properties to enhance operational efficiency.
How Kilroy Realty Corporation (KRC) Makes Money
Revenue Sources
Kilroy Realty Corporation primarily generates revenue through rental income from its portfolio of office and mixed-use properties. As of September 30, 2024, the company reported total revenues of $289.9 million for the third quarter, reflecting an increase from $283.6 million in the same period of the previous year.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Rental Income | $285,951 | $280,681 |
| Other Property Income | $3,987 | $2,913 |
| Total Revenues | $289,938 | $283,594 |
Operating Expenses
The company incurs various operating expenses associated with property management and maintenance. For the third quarter of 2024, total expenses were reported at $205.5 million, slightly higher than the $202.0 million reported in Q3 2023.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Property Expenses | $63,593 | $59,445 |
| Real Estate Taxes | $26,677 | $28,363 |
| General Administrative Expenses | $18,066 | $24,761 |
| Total Expenses | $205,545 | $202,035 |
Net Income
Kilroy Realty Corporation reported a net income of $57.7 million for Q3 2024, compared to $58.7 million in Q3 2023. This slight decrease can be attributed to increased operating costs.
| Net Income Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Income | $57,673 | $58,737 |
| Net Income Available to Common Stockholders | $52,378 | $52,762 |
| Net Income per Share – Basic | $0.44 | $0.45 |
Debt Management
KRC maintains a significant amount of debt to finance its operations and growth. As of September 30, 2024, the company had total liabilities of approximately $5.8 billion, including both secured and unsecured debt.
| Debt Type | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Secured Debt | $599,478 | $603,225 |
| Unsecured Debt | $4,401,678 | $4,325,153 |
| Total Liabilities | $5,772,094 | $5,741,352 |
Cash Flow and Investments
KRC's cash flow from operating activities for the nine months ending September 30, 2024, was approximately $432.9 million. This reflects the company's robust operational performance and ability to generate cash from its rental income.
| Cash Flow Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $432,912 | $492,366 |
| Cash Used in Investing Activities | ($133,548) | ($660,477) |
| Cash from Financing Activities | ($191,938) | ($191,499) |
Market Trends and Outlook
Kilroy Realty Corporation continues to adapt to market trends, focusing on sustainable building practices and enhancing tenant experiences. The company has also launched a new at-the-market stock offering program with a gross sales price of up to $500 million, which may provide additional liquidity for future investments.
| Market Program | Details |
|---|---|
| At-The-Market Stock Offering Program | Gross sales price up to $500 million |
| Share Repurchase Program | Repurchase of up to $500 million of common stock |
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Article updated on 8 Nov 2024
Resources:
- Kilroy Realty Corporation (KRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kilroy Realty Corporation (KRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kilroy Realty Corporation (KRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.