Kilroy Realty Corp., a West Los Angeles real estate investment trust, reported that profit dipped 19% in the first quarter.
Kilroy, which owns West Coast office and industrial properties, earned $10.9 million, or 40 cents a share, compared with $13.5 million, or 49 cents, in the year-earlier period, the company said late Monday. Revenue rose 7% to $54.6 million in the period ended March 31.
Kilroy's funds from operations, a key measure of profitability for REITs, fell to $26.3 million, or 83 cents a share, from $27.2 million, or 89 cents, a year earlier. A REIT allows individual investors to participate in large real estate ventures. Unlike other public companies, REITs must distribute 95% of their income to shareholders.
Financial results in both periods were increased by nonrecurring gains, the company said. In the first quarter of 2003, the company collected a lease termination fee that added 13 cents a share to the funds from operations. A year ago Kilroy reported 13 cents a share of preferred return income from its buyout of a former partner's remaining real estate interests in 12 properties.
At the end of the first quarter Kilroy owned 7.1 million square feet of commercial office space and 4.9 million square feet of industrial space that is 92% occupied.
The company is developing an additional 608,000 square feet of space in Southern California, with completion dates scheduled through 2003. The company also has four redevelopment projects underway in Southern California totaling 473,000 square feet of space at a cost of $48.7 million.
Most of the company's developments are in West Los Angeles, El Segundo and coastal San Diego.
Shares of Kilroy Realty rose 2 cents Monday to $23.96 on the New York Stock Exchange.