KRC Earnings Prediction
The chart below shows how KRC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KRC sees a +0.91% change in stock price 10 days leading up to the earnings, and a -1.22% change 10 days following the report. On the earnings day itself, the stock moves by +0.30%. This data can give you a slight idea of what to expect for the next quarter's release.
KRC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
286.38M
6.45%
-1.23%
Gross Margin
37.36%
1.83%
3.35%
Operating Margin
30.56%
10.09%
4.98%
Net Margin
22.71%
15.16%
14.18%
EPS
0.50
25.00%
13.64%
No Data Available
KRC Earnings Analysis
Kilroy Realty Corp Corporation (KRC.N) Earnings Conference Call
Positive
Leasing Activity Surge: Signed approximately 708,000 square feet of leases in Q4 2024, the highest level of leasing activity since Q4 2019, indicating strong demand for high-quality spaces.
Walmart Lease Agreement: Executed a multi-floor lease with Walmart at Skyline Tower, achieving a meaningful rent increase and addressing a late 2025 expiration through proactive tenant engagement.
Lease Management Success: Addressed over 70% of the largest lease expiration in 2026 through a 274,000 square foot new lease and a previous lease signed in Q4 2023, showcasing effective lease management.
NOI Growth Performance: Cash same property NOI growth was 70 basis points in Q4 2024, driven by restoration and termination fee income, reflecting strong operational performance.
FFO Performance Highlights: FFO for Q4 2024 was $1.20 per diluted share, positively impacted by one-time items including a $6 million gain on the sale of the corporate plane, demonstrating effective asset management.
Negative
FFO Performance Analysis: FFO was $1.2 per diluted share in the fourth quarter, impacted by one-time items totaling approximately $0.11 per share, indicating underlying operational challenges.
Occupancy Rate Decline: Occupancy ended the year at 82.8%, significantly affected by large move outs, including those from Capital One and Microsoft, highlighting tenant instability.
Occupancy Rate Decline: 2025 average occupancy is expected to decline to between 80-82%, a decrease of approximately 300 basis points compared to 2024, reflecting ongoing tenant downsizing.
Declining Cash NOI Projections: Cash same property NOI is projected to decline between negative 1.5% to negative 3%, indicating a challenging revenue environment ahead.
Interest Income Decline: 2025 guidance assumes a significant reduction in interest income, expected to drop from $38 million in 2024 to about $6 million, reflecting decreased cash balances and capitalized interest.
KRC FAQs
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KRC Earning Call Sentiment
Earnings call transcript: Kilroy Realty's Q4 2024 earnings beat expectations
KRC.N
-2.09%Positive
The earnings call reveals several concerns: high vacancy rates in a competitive market, potential delays in project value realization, and increased overhead expenses for 2025. Additionally, management's vague responses in the Q&A section regarding specific project milestones raise uncertainties. While there is potential for significant land sale proceeds, the lack of a share repurchase or dividend program further dampens investor sentiment. Despite some positive aspects like increased FFO guidance, the overall sentiment leans negative due to these challenges and uncertainties.
