Latest news with #KilroyRealty
Yahoo
26-05-2025
- Business
- Yahoo
3 U.S.-Based Dividend Stocks to Buy Today
Essex Property Trust is focused on owning West Coast apartment complexes. Rexford Industrial specializes in owning industrial properties in Southern California. Kilroy Realty primarily owns West Coast office buildings. 10 stocks we like better than Rexford Industrial Realty › It is possible to invest in U.S.-based companies that pay dividends of up to 6.5% with 100% certainty that the assets they own are American through and through. How? By focusing on real estate investment trusts (REITs) like Essex Property Trust (NYSE: ESS), Rexford Industrial Realty (NYSE: REXR), and Kilroy Realty (NYSE: KRC). By design, these three REITs are U.S.-based businesses. Here's what you need to know about each one. Essex Property Trust's physical assets are apartment buildings. Its portfolio consists of 256 apartment complexes containing around 62,000 units across three broad markets: Seattle (17% of net operating income), Southern California (40%), and Northern California (43%). That's not just 100% American, that's 100% West Coast. For many years, Essex benefited from the growth of the technology sector. The coronavirus pandemic and the work-from-home trend have caused some investors to worry about the business model. But as more and more companies demand employees come back to the office, it seems likely that the lingering headwinds from the pandemic will eventually be a thing of the past. And, despite the uncertainty, occupancy in Essex's markets remains strong while new apartment construction remains low. In other words, the REIT is well-positioned for continued success. The dividend yield right now is around 3.5%. It was higher during the pandemic period, but it is still toward the higher side of the stock's 10-year yield range. And the dividend has been increased annually for more than three decades, including during the uncertainty of the pandemic. Rexford Industrial owns warehouses and light-industrial properties. Unlike the other two REITs here, it is hyper-focused on one single geographic region, Southern California, an important gateway for goods from Asia entering the U.S. The company owns 424 industrial properties containing 54 million square feet of space. The key benefit of being in this market is its importance to global trade. But there's more to it, because Southern California is supply-constrained. That has resulted in occupancy levels that are generally higher than in other parts of the country. And with limited options for building new industrial properties, the REIT has material power to increase rents over time. It also has a penchant for buying older properties and upgrading them so rents can be increased. Right now, however, the world is focused on tariff risks. And Rexford's stock has sold off even though it is a vital way to invest in America. The yield is near the highest levels in the REIT's history at 4.8%, and the dividend has been increased annually for a dozen years and counting. Kilroy Realty specializes in offices, which have been hit even harder by the work-from-home trends than apartments. It owns 123 offices containing around 17 million square feet of space. The buildings are spread across three states: California, Washington, and Texas. The move into Texas is recent, as Kilroy has basically followed its technology tenants into the state. The company has also been increasingly focusing on life sciences properties, which are more specialized than traditional office assets. Working from home has been a particular issue for Kilroy, with occupancy in the office sector falling dramatically. Its occupancy is in the low 80% range, which might worry some investors. That said, the REIT's leasing activity has been picking up, and while it isn't back to pre-pandemic levels, it is inching back that way, which suggests that the worst of the downturn is behind it. The REIT offers a lofty 6.5% dividend yield. That's a sign of the concern that investors have about offices and Kilroy's ability to maintain its dividend. It cut its dividend during the Great Recession and hasn't increased it since June 2022. So there is reason for concern, but the funds-from-operations payout ratio was only around 55% or so in the first quarter of 2025. There's some room for adversity here before a cut would likely be in the cards. For more aggressive investors looking for high-yield American stocks, Kilroy could be a strong choice. If you want to buy American, it would be hard to do so more directly than buying buildings that are located in the good old U.S.A. That's what Essex, Rexford, and Kilroy all do, with a particular focus on the West Coast. Each one has a slightly different story, but all are worth a closer look today if you are trying to find U.S.-based dividend stocks to add to your portfolio. Before you buy stock in Rexford Industrial Realty, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rexford Industrial Realty wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 3 U.S.-Based Dividend Stocks to Buy Today was originally published by The Motley Fool
Business Insider
19-05-2025
- Business
- Business Insider
Barclays Sticks to Their Buy Rating for Kilroy Realty (KRC)
Barclays analyst Brendan Lynch maintained a Buy rating on Kilroy Realty (KRC – Research Report) on May 16 and set a price target of $43.00. The company's shares closed last Friday at $32.85. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter According to TipRanks, Lynch is an analyst with an average return of -2.6% and a 46.15% success rate. Lynch covers the Real Estate sector, focusing on stocks such as Crown Castle, Prologis, and SBA Communications. The word on The Street in general, suggests a Hold analyst consensus rating for Kilroy Realty with a $37.67 average price target. KRC market cap is currently $7.77B and has a P/E ratio of 19.57. Based on the recent corporate insider activity of 103 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KRC in relation to earlier this year. Most recently, in March 2025, John Osmond, the EVP, Head of Asset Management of KRC sold 4,000.00 shares for a total of $140,640.00.
Yahoo
08-05-2025
- Business
- Yahoo
Kilroy reports lackluster earnings as West Coast tenants downsize
Kilroy Realty's earnings last quarter were fair to middling as office and life sciences occupancy slackened further across its 17.1-million-square-foot portfolio in San Francisco, Los Angeles, Seattle and San Diego, the company reported Tuesday. Kilroy's funds from operations were $122.3 million, or $1.02 per diluted share in the first quarter, down 8.5 percent from $133.7 million, or $1.11 during the same period last year. But Kilroy CEO Angela Aman said she still has faith in San Francisco, where the artificial intelligence boom is boosting leasing activity and Mayor Daniel Lurie has allied himself with return-to-office crusaders by proposing city employees work in-person at least four days a week. 'We're very bullish about what we're seeing in the city of San Francisco from a leasing standpoint, and from a safety and vibrancy standpoint, particularly over the last few months,' Aman told investors in a conference call following the release of earnings. Data analytics platform Amplitude renewed 57,560 square feet at Kilroy's 201 Third Street in downtown San Francisco, the largest lease Kilroy has signed with any tenant in the city since 2019, according to Aman. And in Seattle, AI firm Databricks expanded its outpost at Kilroy's West8, a 539,226-square-foot office tower at 2001 8th Avenue that previously saw occupancy plunge to just 20 percent when Amazon left the property in 2023. 'We have numerous transactions right now that are promising,' said Robert Paratte, chief leasing officer at Kilroy, in the conference call. 'And I think it's going to be a matter of time before it plays out.' How those negotiations play out will be crucial to improve occupancy across Kilroy's office and life sciences portfolio, which fell to 81.4 percent last quarter from 83.9 percent at the end of the fourth quarter of 2024, and from 84.2 percent at the same time last year. Though the company signed 248,000 square feet worth of leases last quarter, tenants vacated another 216,000 square feet during the same period, Kilroy reported. Among those shrinking their footprint is California biotech company DermTech, which cut its staff by more than half when it filed for bankruptcy last year, and in April moved out of 81,000 square feet at Kilroy's 12340 El Camino Real, a 370,144-square-foot office complex in San Diego. And 23andMe, which is also undergoing restructuring through Chapter 11, will likely let go of 65,000 square feet at its 349 Oyster Point Boulevard headquarters in South San Francisco, according to Jeffrey Kuehling, Kilroy's CFO. Kuehling said the move-out will happen in the second quarter of 2025, and could continue to suppress occupancy across the company's entire portfolio. 'Obviously, if that happens in the quarter, you'll see the occupancy [in the portfolio] move down just a bit,' Kuehling said. 'When we think about the third quarter, I just want to remind everyone that we do have two development properties that will be coming into the stabilized pool, which will affect occupancy.' Those two projects are the 48,000-square-foot 4400 Bohannon Drive in San Francisco and the 52,000-square-foot 4690 Executive Drive in San Diego, according to Kilroy's public filing. The company paused its development pipeline last year, as TRD previously reported. And that won't change in 2025, company executives said in the conference call. In fact, Kilroy is looking to bring in about $150 million by handing off several development sites over the next year. The company is in contract to sell a portion of its 22-acre Santa Fe Summit site in San Diego for $38 million, chief investment officer Eliott Trencher told investors. It's unclear who is planning to buy the site. The Closing: Angela Aman Kilroy Realty won't start any new developments in 2024 SF's 86 AI office leases last year driving rebound This article originally appeared on The Real Deal. Click here to read the full story.
Yahoo
02-04-2025
- Business
- Yahoo
Kilroy Realty Appears Cheap From Real Estate Valuation Perspective: Analyst
J.P. Morgan analyst Anthony Paolone maintained the Overweight rating on Kilroy Realty Corporation (NYSE:KRC) on Tuesday, lowering the price forecast to $42 from $49. Paolone expresses a positive view on the company's portfolio, highlighting its high-quality assets and strong balance sheet compared to other office REITs. According to the analyst, leasing activity in key West Coast markets will improve in the near future, especially as tech companies push to bring employees back to the office. Additionally, the analyst projects operational expense growth to stabilize. Looking ahead, Paolone sees improvement in the capital markets for office assets in 2025, which could help reveal that the company's stock is currently undervalued. Also Read: The analyst notes that, based on a 9%+ implied cap rate for the company's portfolio and a current occupancy rate of around 80%, the stock appears cheap from a real estate valuation perspective. Paolone points out that during peak cycles, Kilroy Realty's assets were valued at cap rates in the low 4% range, further supporting their view that the stock is discounted. The analyst has revised their financial outlook for 2025 and 2026, lowering their FFO/share estimates. For 2025, the revised estimate is $4.01, which is slightly above Bloomberg's consensus of $3.99 and ahead of the midpoint of the company's guidance at $3.95, the analyst writes. However, the estimate for 2026 has been reduced more significantly to $3.52, reflecting a 12.3% year-over-year decline, and is notably below Bloomberg's consensus of $3.85. Per Paolone, the key factor driving these downward revisions is a reduction in capitalized interest, which comes from assuming that another $1 billion in land and projects, not part of KOP II, will be excluded from active development. This includes an estimated $600+ million in capital from the Flower Mart project, over $200 million from the SIX0 development, and an additional $100-$200 million from various smaller projects, contributing to the lowered projections, Paolone adds. Price Action: KRC shares are trading higher by 1.10% to $33.22 at last check Wednesday. Read now:Photo via Shutterstock. Date Firm Action From To Mar 2022 Evercore ISI Group Downgrades Outperform In-Line Feb 2022 B of A Securities Upgrades Neutral Buy Jan 2022 Mizuho Upgrades Neutral Buy View More Analyst Ratings for KRC View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? KILROY REALTY (KRC): Free Stock Analysis Report This article Kilroy Realty Appears Cheap From Real Estate Valuation Perspective: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
