Monday, Kilroy Realty Corp. (KRC) reported a plunge in FFO for the fourth quarter, hurt by a decline in revenue and an increase in expenses.
Kilroy Realty's FFO for the fourth quarter plunged to $17.7 million or $0.39 from $25.7 million or $0.73 per share in the year-ago period.
Net loss available for common stockholders for the fourth quarter was $3.0 million or $0.08 per share, compared to net income of $4.5 million or $0.14 per share in the same quarter last year.
On an average, nine analysts expected the company to earn $0.09 per share for the quarter. Analysts' estimate typically exclude one-time items.
Results for the recent quarter include a previously announced one-time $7.0 million charge for separation payments related to the resignation for personal reasons of the company's former chief financial officer in December 2009 and gains on early extinguishment of debt of about $1.8 million or $0.04 per share and $4.9 million, or $0.12 per share, respectively, related to the repurchase of $122.0 million and $162.0 million, respectively, of its exchangeable senior notes, which mature in 2012.
Fourth quarter, total revenues declined to $67.4 million, from $72.3 million in the prior year's fourth quarter. Analysts expected revenues of $68.75 million for the fourth quarter.
Total expenses increased to $68.7 million from $63.7 million in the comparable quarter last year.
Kilroy Realty signed approximately 583,000 square feet of office leases and 545,000 square feet of industrial leases in the fourth quarter. The company executed 1.1 million square feet of leases during the final quarter of the year, a number that exceeded its leasing volume for the first three quarters of 2009 combined.
For its fiscal year 2009, the company reported FFO of $107.2 million or $2.60 per share, compared to $114.0 million or $3.26 per share last year. Net income available to common stockholders dropped to $21.8 million or $0.53 per share from $29.8 million or $0.91 per share in the prior year. Revenues from continuing operations for the full year decreased to $279.4 million from $289.4 million last year.
Street expected earnings of $2.63 per share on revenues of $281.62 million for the full year.
KRC ended Monday's trading session at $30.18, down $0.55 or 1.79% on a volume of 1.12 million shares on the NYSE.
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