Kilroy Realty Profits Plunge in Quarter

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Office real estate investment trust Kilroy Realty Corp. reported sharply lower fourth quarter earnings Tuesday compared to the year-ago quarter, which was bolstered by profits from property sales.

The Los Angeles-based REIT reported net income of $5.9 million (18 cents per share), compared to $65.6 million ($2.01) per share a year ago, when the quarter included net gains of $61 million on the property sales. Revenue from continuing operations rose 4 percent $72.4 million.

Funds from operations totaled $27.2 million (78 cents), compared with $29.7 million (85 cents) a year ago. Funds from operations, which includes such factors as amortization and depreciation, is considered a key measure of a real estate investment trust’s financial strength.

For fiscal 2008, Kilroy reported net income of $34.5 million ($1.06) per share, compared to $104 million ($3.20) in fiscal year 2007.

“KRC delivered a solid performance in 2008, in particular achieving excellent leasing results despite an increasingly difficult economic environment,” said Chief Executive John B. Kilroy Jr. in a statement.

Kilroy shares were down $1.29, or 5 percent, to $25.47 in morning trading on the New York Stock Exchange.

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