Kilroy Same Store NOI Strong

LOS ANGELES—Kilroy Realty‘s Q1 2014 earnings were strong, according to a report from RBC Capital Markets and another from Cowen and Co. The company had an FFO/share of $0.66, missing RBC Capital’s estimate by $0.02 and consensus by $0.01; however, the FFO/share was $0.01 higher than Cowen and Co.’s estimate.

The company’s NOI grew an impressive 7.7%, showing the best quarter since Q3 2013. Revenue was up 7.6% and expenses were up 7.4%. Although NOI growth was strong, the REIT also came in below the higher interest growth expectations by $0.02. Occupancy also had ups and downs. Same store occupancy is up to 92.6%. Comparatively, the company reported 90.6% occupancy in the same quarter last year and 92.4% occupancy in the final quarter of last year. However, overall occupancy is down 100 basis points from the end of 2013 to 92.4%. Due to a strong same store NOI growth despite declining occupancy, Cowen and Co. predicts higher than originally forecasted same store NOI growth for the remainder of the year, with occupancy increasing by 60 basis points to finish at 93%.