Kilroy Realty Corporation Reports $210.97 Million Net Income for Fiscal Year 2024

Kilroy Realty Corporation reported a net income of $210.97 million for the fiscal year ending December 31, 2024, a slight decrease of 0.6% from $212.24 million in 2023. The company's total revenue for the year was approximately $1.14 billion, with a net operating income (NOI) of $771.52 million, down 1.7% from $785.13 million in the previous year. The decline in NOI was primarily attributed to a decrease in rental income from same-store properties, which fell by $10.58 million, or 1.0%, largely due to the expiration of leases and the burn-off of abated rent.

In terms of operational metrics, Kilroy Realty's stabilized portfolio consisted of 123 properties, encompassing approximately 17.14 million rentable square feet and 1,001 residential units. The average occupancy rate for the stabilized office portfolio was reported at 82.8%, with a leasing volume of 1.4 million square feet achieved during the year. The company executed new and renewal leases with an increase in GAAP rents of 8.2%, although cash rents decreased by 4.5%. The company also reported that 53.6% of its total annualized base rental revenues came from its 20 largest tenants, indicating a significant reliance on a concentrated tenant base.

Strategically, Kilroy Realty continued to focus on its development and redevelopment initiatives, with two projects in the tenant improvement phase and one under construction, totaling approximately 975,000 square feet. The company also maintained a robust future development pipeline, with eight potential sites representing over 6.0 million square feet of office and life science space. In 2024, Kilroy Realty acquired one operating property for $35 million, further expanding its portfolio.

Financially, Kilroy Realty's total debt as of December 31, 2024, was approximately $4.63 billion, representing 49% of its total market capitalization. The company successfully issued $400 million in unsecured senior notes at a 6.25% interest rate and amended its revolving credit facility to maintain a $1.1 billion borrowing capacity, extending its maturity to July 2028. The company reported a decrease in general and administrative expenses by 22.9%, primarily due to reduced share-based compensation costs following the retirement of its former CEO.

Looking ahead, Kilroy Realty expressed optimism about its ability to navigate market conditions and continue its growth trajectory. The company plans to focus on maintaining high occupancy rates, managing operating expenses, and pursuing strategic acquisitions and developments. However, it acknowledged potential risks, including economic uncertainties, interest rate fluctuations, and the ongoing evolution of the office leasing market, which could impact future performance.