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Highlights
- Intech Investment Management cut its Kilroy Realty stake by 63.9%.
- Kilroy Realty's stock dropped 1.6% post-earnings release.
- Kilroy Realty declared a quarterly dividend with a 5.34% yield.
Kilroy Realty Corp. experienced a reduction in its stock position by Intech Investment Management, reflecting shifting investor sentiment. Following its latest earnings release, the company's stock dropped 1.6%. Despite this, Kilroy Realty declared a quarterly dividend, offering a 5.34% yield. This comes amid ongoing market interest in NYSE Infrastructure and Real Estate Stocks sectors.
Intech Investment Management Reduces Stake
Kilroy Realty Co. (NYSE:KRC) witnessed a notable change in institutional holdings during the third quarter, with Intech Investment Management LLC reducing its stake by 63.9%. After selling 16,777 shares, Intech’s remaining position now holds just 9,458 shares, valued at $366,000. This move is part of a broader trend of varying institutional activity in the real estate investment trust (REIT) sector, which has seen a mix of increased and decreased positions among other institutional investors. This change comes amid a somewhat turbulent period for Kilroy Realty.
Other institutional investors, such as UMB Bank and Blue Trust Inc., also altered their stakes, with UMB Bank increasing its holdings by 126.5% and Blue Trust Inc. lifting its position by over 1,300%. However, the company still remains predominantly owned by institutional investors, who hold 94.22% of its shares.
Kilroy Realty Stock Performance and Earnings
Kilroy Realty's stock opened at $40.44 on Wednesday, experiencing a 1.6% decrease. Despite this dip, the stock has shown some signs of resilience with a market capitalization of $4.77 billion and a beta of 1.03. The company’s stock has fluctuated within a 52-week range of $30.71 to $43.78.
The company’s earnings report for the third quarter, issued on October 28th, revealed a significant miss in earnings per share (EPS), reporting $0.44 EPS compared to analysts' expectations of $1.04. This disappointing result was compounded by a lower-than-expected return on equity of 3.53% and a net margin of 17.78%. Kilroy’s revenue did show a modest increase of 2.2% from the previous year, totaling $289.94 million for the quarter, surpassing consensus estimates. Despite this growth in revenue, the miss in EPS indicates challenges in profitability.
Dividend Announcement and Analyst Sentiment
Kilroy Realty also announced a quarterly dividend of $0.54 per share, representing an annualized yield of 5.34%. This dividend payout came on October 9th, with a payout ratio of 129.34%, reflecting the company’s commitment to returning value to shareholders despite its financial struggles.
Wall Street analysts have weighed in on the stock’s future performance. Scotiabank downgraded Kilroy Realty from "sector perform" to "sector underperform," setting a $38 target price. Meanwhile, Barclays raised its target to $44 and Wells Fargo adjusted its target down to $38, indicating a mixed outlook for the company. The stock has been assigned a range of ratings, with analysts holding a mostly neutral stance.
Kilroy Realty’s recent stock performance, combined with its quarterly earnings results and institutional activity, paints a picture of a company navigating through challenging conditions. While the company's strong presence in the U.S. real estate market and commitment to sustainability and innovation remain noteworthy, the financial struggles highlighted by recent earnings and analyst sentiment suggest the company faces hurdles in the near term.
