Upcoming AWS Coverage on Digital Realty Trust Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 23, 2017 / Active Wall St. announces its post-earnings coverage on Kilroy Realty Corp. (NYSE: KRC). The Company announced its financial results for the fourth and full year fiscal 2016 (FY16) on February 06, 2017. The office real estate investment trust's quarterly revenue increased approximately 14% on a y-o-y basis. Register with us now for your free membership at:

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One of Kilroy Realty's competitors within the REIT - Office space, Digital Realty Trust, Inc. (NYSE: DLR), reported on Thursday, February 16, 2017, details for its Q4 2016 earnings results. AWS will be initiating a research report on Digital Realty Trust in the coming days.

Today, AWS is promoting its earnings coverage on KRC; touching on DLR. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the fourth quarter ended December 31, 2016, KRC's revenues totaled $168.6 million compared to $147.4 million in the prior year's same period. The Company's revenues numbers surpassed analysts' consensus of $163.3 million. KRC's cash same-store NOI was up 9.1% for Q4 2016, and for the year it grew 14.3%. GAAP NOI rose 6.7% in the reported quarter and 4.6% for FY16.

For Q4 2016, KRC reported net income available to common stockholders of $29.4 million, or $0.29 per share, compared to $25.3 million, or $0.27 per share, in Q4 2015. The Company's FFO in Q4 2016 was $84.3 million, or $0.87 per share, including $0.01 of acquisition-related expenses, compared to $76.7 million, or $0.80 per share, in the year-earlier comparable quarter. KRC's FFO numbers exceeded Wall Street's expectations for FFO of $0.86 per share.

"2016 was another exceptional year for KRC, with strong results across all areas of our business," said John Kilroy, the Company's Chairman, President, and Chief Executive Officer, "Our stabilized portfolio operated at record occupancy, produced record same-store net operating income and generated solid growth in rental rates."

Operating and Leasing Details

At December 31, 2016, KRC's stabilized portfolio totaled approximately 14.0 million square feet of office space and 200 residential units located in Los Angeles, Orange County, San Diego, the San Francisco Bay Area, and greater Seattle. During Q4 2016, the Company signed new or renewing leases in the office portfolio totaling 456,000 square feet of space, at rents that were 12% higher on a cash basis and 33% higher on a GAAP basis. At quarter-end, KRC's office portfolio was occupied 96.0% compared to 96.6% at September 30, 2016, and 94.8% at December 31, 2015.

Real Estate Activity

At December 31, 2016, KRC had two office projects totaling approximately 1.1 million square feet, 237 residential units, and 96,000 square feet of retail space under construction, representing a total estimated investment of approximately $980.0 million. The Company noted that it also had one office project in lease-up encompassing approximately 377,000 square feet and representing a total estimated investment of approximately $230.0 million.

Development

During Q4 2016, KRC commenced construction of a 400,000 square-foot office and production, distribution, and repair project at 100 Hooper in the SOMA district of San Francisco, with 66% of the office portion pre-leased to Adobe. The Company also started construction on the first phase of its 1.1 million square-foot mixed-use One Paseo project in the Del Mar submarket of San Diego.

Strategic Venture

KRC closed the second of two strategic ventures with Norges Bank Real Estate Management (NBREM), in which NBREM contributed $261.5 million for a 44% common equity interest in 303 Second Street in San Francisco, an amount net of NBREM's proportionate share of existing mortgage debt secured by the property.

Acquisitions

During Q4 2016, KRC acquired a 179,000 square-foot mixed-use project in West Hollywood, encompassing a 10-story office tower, three retail buildings, a four-level subterranean parking structure, and three billboards for $209.2 million. The project was 87% occupied at December, 31, 2016. The Company also acquired a 129,000 square-foot office, research and wet lab facility and a 37,000 square-foot office building located in Stanford University's Stanford Research Park, both subject to a 51-year ground lease, for $130.0 million. The project was 100% occupied at December 31, 2016.

Finance

KRC obtained a 10-year, 3.57% fixed-rate mortgage for $170.0 million in the reported quarter secured by the Company's Westside Media Center properties in Los Angeles, and used a portion of the proceeds to pay off a $64.4 million mortgage, at par. The Company also raised net proceeds of $31.9 million through the issuance of common stock under the Company's at-the-market offering program.

FFO per Share Guidance

For FY17, KRC is projecting an initial guidance range of NAREIT-defined FFO per share (diluted) of $3.40-$3.60 per share with a midpoint of $3.50 per share, compared to FFO of $3.41 per share in FY16 after adjusting for a $0.05 per share gain from a property damage settlement.

Stock Performance

On February 23, 2017, Kilroy Realty's share price finished the trading session at $76.74, slightly down by 0.60%. A total volume of 369.01 thousand shares exchanged hands. The stock has surged 10.18% and 48.83% in the last three months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 4.81%. The stock is trading at a PE ratio of 25.75 and has a dividend yield of 1.95%.

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SOURCE: Active Wall Street