KRC Financial Analysis

Analysis Date: 1/29/2025

Business Model

Kilroy Realty Corporation generates revenue primarily through rental income from office, life science and residential properties

Revenue Sources

• Rental income (98.6% of Q3 2024 revenue)
• Other property income (1.4% of Q3 2024 revenue)

Revenue Distribution by Channel

• 84.3% average occupancy across portfolio

Income Statement Analysis

• Revenue grew 2.2% year-over-year to $289.9M
• Net operating income margin remains strong at 67.8%
• Same store NOI increased 1.5% year-over-year

Balance Sheet Analysis

• Strong balance sheet with $625M cash and equivalents
• Net debt to EBITDA ratio of 6.4x

Capital Allocation

The company maintains a balanced approach with: Regular quarterly dividend of $0.54 per share, Development pipeline of $1.0B including Kilroy Oyster Point Phase 2, Strong liquidity position of $1.7B including $0.6B cash and $1.1B undrawn credit facility

Management Commentary

Strong quarter of execution across platform as recovery takes hold in markets

Strategic acquisition of Junction at Del Mar office campus adjacent to One Paseo

Overall Sentiment: Cautiously optimistic with focus on portfolio quality and strategic growth

Recommendation

Rating: Hold

Reason for Rating: Stable operating performance balanced against office sector headwinds

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/29/2025, 5:14:43 AM