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Goldman Sachs maintains buy on Kilroy Realty stock

EditorAhmed Abdulazez Abdulkadir
Published 03/05/2024, 18:20

On Friday, Goldman Sachs (NYSE:GS) reaffirmed its Buy rating and $43.00 price target for Kilroy Realty Corporation (NYSE:KRC), following the company's first-quarter financial results for 2024. Kilroy Realty reported first-quarter funds from operations per share (FFOPS) of $1.11, marking a 1% increase over Goldman Sachs estimates and a 4% rise against the consensus.

The real estate investment trust (REIT) also adjusted its full-year 2024 FFO guidance upwards by 1%, setting the new midpoint at $4.23. This updated guidance remains 1% below Goldman Sachs' own projection of $4.27, with the firm anticipating further positive revisions throughout the year based on the company's history of surpassing its initial forecasts.

Kilroy Realty's occupancy rates were in line with expectations, while leasing spreads showed a 9% increase on a Generally Accepted Accounting Principles (GAAP) basis and a 3% decrease on a cash basis. The company's operational performance included approximately 400,000 square feet of signed leases. Excluding short-term agreements, 284,000 square feet were signed, which is consistent with the previous year's figures and estimated to be 12% higher than the average levels recorded in the first quarters of 2018 and 2019.

The firm expressed confidence that Kilroy Realty's stock would outperform other REITs due to its strong first-quarter performance, upwardly revised full-year guidance, and robust leasing activity. Additional details from Kilroy Realty's earnings release and points of discussion for the earnings call were also highlighted by the firm, emphasizing the solid foundation for the company's anticipated market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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