Kilroy Realty Corp. yesterday reported earnings that rose in concert with the overall improvement to the commercial real estate market.
The West L.A. real estate investment trust announced that funds from operations, a figure used by REITs that accounts for cash flow less depreciation and amortization expenses, totaled $58.5 million (67 cents a share) for the fiscal fourth quarter ended Dec. 31. That was a 17 percent increase from the same period a year earlier. Revenue, including from discontinued operations, rose more than 10 percent to $128 million.
Earnings beat analysts’ expectations of 64 cents a share on revenue of $107.9 million.
John Kilroy Jr., the company’s president and chief executive, said that in addition to general market improvements, the firm’s expansion efforts paid off. As of Dec. 31, Kilroy’s portfolio totaled 12.7 million square feet of commercial office space with another 2.5 million square feet under development.
“We made significant progress in expanding our market presence within the West coast’s most dynamic economies and reshaping our real estate assets to deliver the quality, efficiency and sustainability that our tenants now expect in their professional work environment,” he said in a statement. “This transformation will serve our company and shareholders well, not just over the coming year, but across the next decade.”
Shares of Kilroy Realty closed at $53.21, up $1.43 or 2.8 percent, on the New York Stock Exchange.