在租赁活动强劲的情况下，Kilroy Realty概述了2025年FFO指引为3.85 - 4.05美元

Earnings Call Insights: Kilroy Realty Corporation (NYSE:KRC) Q4 2024

Management View

• CEO Angela Aman highlighted a strong end to 2024, driven by outperformance in financial results and a significant increase in leasing activity. Approximately 708,000 square feet of leases were signed, marking the highest leasing activity since Q4 2019. Key deals included a multi-floor lease with Walmart in Bellevue, Washington, and a 274,000 square foot new lease in the San Francisco Bay Area with a global technology company.
• Aman emphasized the embedded upside in Kilroy’s highest-quality vacancies, with 410 basis points of leased occupancy upside concentrated in recently developed or repositioned assets. The company also completed the second phase of Kilroy Oyster Point in South San Francisco, positioning it as a future growth driver.
• CFO Jeffrey Kuehling noted that FFO for Q4 was $1.20 per diluted share, which included one-time items such as a $6 million gain on the sale of a corporate plane. He outlined 2025 FFO guidance of $3.85 to $4.05 per diluted share, with average occupancy expected to range between 80% and 82%.

Outlook

• Management projects 2025 FFO at a midpoint of $3.95 per share, with average occupancy declining approximately 300 basis points compared to 2024, driven by major move-outs in Q4 2024 and Q1 2025.
• Same-property NOI growth is expected to decline between negative 1.5% and negative 3% in 2025, primarily due to base rent detractions, net recoveries, and non-recurring items from 2024.
• The company remains focused on capital recycling initiatives, including advanced discussions to sell two land sites for over $150 million, though no 2025 FFO impacts from these transactions are included in guidance.

Financial Results

• Q4 FFO of $1.20 per share included $0.11 from one-time items such as restoration and termination fee income.
• Cash same-property NOI growth was 70 basis points in Q4, with a contribution from these non-recurring items.
• Occupancy ended 2024 at 82.8%, impacted by previously discussed large move-outs, including Capital One and Microsoft.
• Overhead spending in 2024 declined to $81 million, down from $100 million in 2023, reflecting cost-savings initiatives. Overhead guidance for 2025 is set at $83 million to $85 million.

Q&A

• Upal Rana, KeyCorp: Asked about visibility on 2025 occupancy. Angela Aman explained that significant move-outs in Q1 2025, including an 80,000 square foot move-out and a termination tied to a new deal in Bellevue, will stabilize occupancy afterward. She also highlighted progress in addressing 2026 expirations.
• Steve Sakwa, Evercore ISI: Inquired about the 2026 lease expirations. Aman clarified that the largest expiration has been 70% addressed through proactive leasing efforts, though it remains reflected in the lease schedule.
• Jamie Feldman, Wells Fargo: Asked about tenant decision-making amid AI and life science funding concerns. Aman reported no deal delays and noted increasing activity, particularly in South San Francisco.

Sentiment Analysis

• Analysts expressed cautious optimism, with questions centered around occupancy trends, leasing progress, and 2026 expirations.
• Management maintained a slightly positive tone, emphasizing strategic leasing efforts and the potential for growth from repositioned assets. Prepared remarks displayed greater confidence compared to Q&A exchanges, where management acknowledged market challenges.
• Compared to the prior quarter, sentiment showed a slight improvement, driven by stronger leasing activity and improved pipeline visibility.

Quarter-over-Quarter Comparison

• Leasing activity surged to 708,000 square feet in Q4, compared to 436,000 square feet in Q3, marking a significant acceleration.
• Management tone in Q4 was more confident, reflecting progress in addressing 2026 expirations and the successful delivery of Kilroy Oyster Point Phase 2.
• Analysts remained focused on occupancy and leasing trends, though concerns about move-outs and the competitive leasing environment persisted.

Risks and Concerns

• Management cited significant move-outs in Q1 2025, including 216,000 square feet of lease expirations, as a key risk to near-term occupancy.
• Analysts raised questions about tenant downsizing trends, competitive pressures from sublease space, and the potential impact of elongated deal cycles on leasing activity.
• Mitigation strategies include proactive engagement with tenants to address lease expirations and leveraging high-quality repositioned assets to attract demand.

Final Takeaway

Kilroy Realty Corporation reported strong leasing activity in Q4 2024 and outlined a 2025 FFO guidance range of $3.85 to $4.05 per share, reflecting challenges from move-outs and a competitive leasing environment. Significant progress was noted in proactive leasing efforts and asset repositioning, positioning the company for potential occupancy growth in 2025 and beyond. However, market pressures and elongated deal cycles remain key risks.

Read the full Earnings Call Transcript