Kilroy Realty Reports Q3 Results: Earnings and Revenue Up

Kilroy Realty Corp. reported a rise in funds from operations and revenues in its third-quarter results, although profit saw a slight dip. Analysts had estimated lower earnings per share, indicating positive performance relative to expectations. The outlook for fiscal 2024 improves with upward revisions in earnings projections.

Date: 29-10-2024

AI Rating: 7

Kilroy Realty Corp. (KRC) has shown positive trends in its third-quarter financial results. The funds from operations (FFO) amounted to $140.4 million, which breaks down to $1.17 a share, showing an increase from $134.04 million or $1.12 a share from the previous year. This reflects a solid performance in operations.

Despite these positive metrics, the profit experienced a slight decline to $52.4 million or $0.44 per share, down from $52.8 million or $0.45 per share in the previous year. This is a point of concern, particularly as it signals a marginally negative trend in net profit despite the strong FFO performance.

However, the company's revenue growth is noteworthy, having increased to $289.9 million from $283.6 million last year. This suggests that the company is successfully expanding its business operations, which, combined with the positive FFO results, underlines a generally healthy revenue stream.

Looking to the future, the company has revised its fiscal year 2024 outlook favorably. Kilroy now expects a FFO of $4.38 to $4.44 per share, an improvement from a previous range of $4.21 to $4.31 per share. This upward adjustment signals confidence in continued operational strength and growth potential.

Further, the revised estimates for earnings per share point towards enhanced profitability expectations, with projections now set at $1.61 to $1.66, up from an earlier estimate of $1.50 to $1.59. This indicates a positive shift in earnings outlook relative to analyst expectations, which had only anticipated earnings of $0.35 per share for the period.

Stocks: KRC