Key Takeaways:
Kilroy Realty Corp. (KRC) reported first-quarter funds from operations of $0.91 per share, beating the Zacks Consensus Estimate of $0.88.
"We remained active on the capital allocation front, selling approximately $350 million of non-core and non-strategic properties year-to-date, while prudently allocating capital to debt repayments (and) opportunistic share repurchases,” Angela Aman, Chief Executive Officer at Kilroy Realty, said in a statement.
The real estate investment trust’s FFO beat came despite a decline from the $1.02 per share reported in the same quarter a year ago. The company also posted a net loss of $19 million for the quarter ended March 31, a significant shift from the $39 million in net income recorded in the prior-year period.
The results come as Kilroy continues a significant capital recycling program. The company announced it sold two Hollywood apartment towers, Columbia Square Living and Jardine, for gross proceeds of $202 million in April. It also sold the Del Mar Tech Center, an office building, for $21 million.
These transactions bring Kilroy's total dispositions to approximately $350 million year-to-date. The sales are part of a broader strategy to divest non-core assets and reinvest capital into debt repayment and share buybacks. After these sales, the REIT holds only two multifamily properties in Southern California, both located in San Diego. The company did not disclose forward-looking guidance for the upcoming quarter.
The FFO beat signals operational performance above expectations, though the net loss reflects broader challenges. Investors will likely watch for details on the deployment of capital from recent sales in the company's upcoming financial reports.
This article is for informational purposes only and does not constitute investment advice.
