AG真人官方

Kilroy AG真人官方ty Corporation Reports Second Quarter Financial Results

LOS ANGELES--(BUSINESS WIRE)-- Kilroy AG真人官方ty Corporation (NYSE: KRC) (鈥淜ilroy鈥� or the 鈥淐ompany鈥�) today reported financial results for its second quarter ended June 30, 2025.

鈥淲e are pleased to report on a strong quarter of execution across every facet of our business,鈥� reported Angela Aman, CEO. 鈥淟easing momentum accelerated during the quarter, resulting in over 400,000 square feet of lease executions. In addition, we were active on the capital recycling front, with significant progress recently made on both the monetization of land in our future development pipeline and on dispositions of non-strategic operating properties, as institutional interest in West Coast office assets continues to improve.鈥�

Financial Results

• Revenues of $289.9 million for the quarter ended June 30, 2025, as compared to $280.7 million for the quarter ended June 30, 2024
• Net income available to common stockholders of $68.4 million, or $0.57 per diluted share, for the quarter ended June 30, 2025, as compared to $49.2 million, or $0.41 per diluted share, for the quarter ended June 30, 2024
• Funds from operations (鈥淔FO鈥�) of $135.9 million, or $1.13 per diluted share, for the quarter ended June 30, 2025, as compared to $132.6 million, or $1.10 per diluted share, for the quarter ended June 30, 2024

Leasing and Occupancy

• Stabilized Portfolio was 80.8% occupied and 83.5% leased at June 30, 2025, representing 270 basis points of leases signed that have not commenced
• During the quarter, signed approximately 423,000 square feet of leases
  • Leasing activity was comprised of 225,000 square feet of new leasing on previously vacant space, 26,000 square feet of new leasing on currently occupied space, and 172,000 square feet of renewal leasing
    • Included 63,000 square feet of development and First Generation leasing, highlighted by an approximately 25,000 square foot lease at the 4690 Executive Drive redevelopment project, as well as 77,000 square feet of short-term leasing
• GAAP and cash rents on leases signed during the quarter decreased 11.2% and 15.2%, respectively, from prior levels on Second Generation leasing, excluding short-term leasing

Dispositions / Held for Sale

• In June, completed the sale of 501 Santa Monica Boulevard, an approximately 79,000 square foot operating property in West Los Angeles for gross sales proceeds of $40.0 million ($509 per square foot)
• During the quarter, classified a four building campus in Silicon Valley as Held for Sale. The campus totals approximately 663,000 square feet and the sale is expected to close late in the third quarter for gross sales proceeds of $365.0 million ($550 per square foot)
• As previously disclosed, in April, entered into an agreement, subject to a non-refundable deposit, to sell a portion of the land at Santa Fe Summit for $38.0 million in gross sales proceeds. The transaction represents approximately five acres of the 22-acre site and is anticipated to close upon the receipt of entitlements, which is expected to occur in 2026

Dividend

• The Board declared and paid a regular quarterly cash dividend on its common stock of $0.54 per share, equivalent to an annual rate of $2.16 per share. The dividend was paid on July 9, 2025 to stockholders of record on June 30, 2025 (the ex-dividend date)

Recent Developments

• Subsequent to quarter end, entered into an agreement, subject to a non-refundable deposit, for the sale of 1633 26th Street for gross sales proceeds of $41.0 million. The transaction is anticipated to close upon the receipt of entitlements, which is expected to occur in 2026

Net Income Available to Common Stockholders / FFO Guidance and Outlook

The Company is updating Nareit-defined FFO per share guidance for the full year 2025 to a range of $4.05 to $4.15 per diluted share, from the previous range of $3.85 to $4.05 per diluted share.

The Company鈥檚 guidance estimates for the full year 2025, and the reconciliation of Net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this press release, reflect management鈥檚 views on current and future market conditions, including assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this press release. These guidance estimates do not include the impact on the Company鈥檚 operating results from potential future acquisitions, dispositions (including any associated gains or losses), capital markets activity, impairment charges, or any events outside of the Company鈥檚 control, as the timing and magnitude of any such events are not known at the time the Company provides guidance. There can be no assurance that the Company鈥檚 actual results will not differ materially from these estimates.

Conference Call and Audio Webcast

The Company鈥檚 management will discuss second quarter results and the current business environment during the Company鈥檚 July 29, 2025 earnings conference call. The call will begin at 10:00 a.m. Pacific Time and last approximately one hour. To participate and obtain conference call dial-in details, register by using the following link, . Those interested in listening via the Internet can access the conference call at . It may be necessary to download audio software to hear the conference call.

About Kilroy AG真人官方ty Corporation

Kilroy is a leading U.S. landlord and developer, with operations in San Diego, Los Angeles, the San Francisco Bay Area, Seattle, and Austin. The Company has earned global recognition for sustainability, building operations, innovation, and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the Company鈥檚 approach to modern business environments helps drive creativity and productivity for some of the world鈥檚 leading technology, entertainment, life science, and business services companies.

The Company is a publicly traded real estate investment trust (鈥淩EIT鈥�) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring, and managing office, life science, and mixed-use projects.

As of June 30, 2025, Kilroy鈥檚 stabilized portfolio totaled approximately 16.4 million square feet of primarily office and life science space that was 80.8% occupied and 83.5% leased. The Company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 93.8%. In addition, the Company had one development project in the tenant improvement phase totaling approximately 875,000 square feet with a total estimated investment of $1.0 billion and two life science redevelopment projects in the tenant improvement phase totaling approximately 100,000 square feet with total estimated redevelopment costs of $85.0 million.

A Leader in Sustainability and Commitment to Corporate Social Responsibility

Kilroy has a longstanding commitment to sustainability and continues to be a recognized leader in our sector. For over a decade, the Company and its sustainability initiatives have been recognized with numerous honors, including earning the GRESB five star rating and being named a sector and regional leader in the Americas. Other honors have included the Nareit Leader in the Light Award, being listed on the Dow Jones Sustainability World Index, being named ENERGY STAR Partner of the Year, and receiving the ENERGY STAR highest honor of Sustained Excellence.

Kilroy is proud to have achieved carbon neutral operations across our portfolio since 2020. The Company also has a longstanding commitment to maintain high levels of LEED, Fitwell, and ENERGY STAR certifications across the portfolio.

Kilroy is committed to cultivating a company culture that makes a positive difference in our employees鈥� lives by focusing on development, celebrating our unique backgrounds, promoting employee health and wellness, and dedicating ourselves to being a responsible corporate citizen through our community service and philanthropic efforts.

More information is available at .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results, and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including actual and potential tariffs and periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California, Texas, and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants鈥� businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the entertainment industry, may have on our tenants鈥� businesses; our ability to re-lease property at or above current market rates; reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer's office premises; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service, and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment, and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices, or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed, and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement, and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations, or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers鈥� financial condition, and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; and our ability to maintain our status as a REIT. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption 鈥淩isk Factors鈥� in our annual report on Form 10-K for the year ended December 31, 2024, and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

听

View source version on businesswire.com:

Doug Bettisworth

Vice President, Corporate Finance

(310) 481-8585

Source: Kilroy AG真人官方ty Corporation