KRC · Kilroy Realty Corp Q2 FY2026 earnings call record财报电话会记录

“During the second quarter, we executed approximately 376,000 sq ft of new and renewal leases, bringing year-to-date leasing volume to roughly 944,000 sq ft, an increase of more than 40% versus the first six months of 2025.”

“When excluding leases signed on spaces vacant for longer than 12 months, re-leasing spreads improved further to 27.3% and 15.6% on a GAAP and cash basis, respectively.”

“At June 30th, the total square footage represented by pipeline transactions was 34% higher than at the end of the first quarter, with the LOI and late-stage pipeline up approximately 77%, reflecting broad-based improvement across markets and tenant industries and the ongoing flight to quality trends that are driving demand for premium assets and sponsors.”

“Average deal size in the San Francisco market has steadily increased, while the availability of large, contiguous blocks, those 100,000 sq ft and above, has materially declined, with only 20-25 high-quality opportunities of size remaining in the city for the more than 25 active tenants currently in the market looking for comparable spaces.”

“While the downtown sub-market continues to be challenged, our remaining vacancy at 2100 Kettner in Little Italy continues to resonate with tenants with active space requirements.”

“Notably, we're starting to see some instances of buyers pricing risk more generously, specifically as it relates to future leasing demand and/or CapEx requirements.”

“We will evaluate these opportunities carefully and sell into strengths if we believe the risk-adjusted returns are favorable for shareholders.”

“Portfolio occupancy, including KOP 2, ended the quarter at 77%, down 60 basis points from the prior quarter, despite two previously communicated large move-outs that negatively impacted occupancy by approximately 140 basis points.”

“Combined with the visibility provided by our signed but not commenced pipeline, which grew incrementally during the second quarter despite significant commencement activity, we are confident in the path to occupancy stabilization and growth.”

“Lastly, turning to guidance, we affirmed our previous guidance range and assumptions last night with an FFO range of $3.49-$3.63 per diluted share and same property NOI growth range of 25-125 basis points.”

“The full year earnings guidance implies a step down in the back half.”

“It won't have probably a huge impact on the cash flow and property and high growth, but it would really build more of a non-cash straight line GAAP effect.”