Kilroy Realty Corporation (KRC) has reported an 80.77 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $33.52 million, or $0.26 a share in the quarter, compared with $174.31 million, or $1.84 a share for the same period last year.

Revenue from real estate activities during the quarter increased 23.28 percent or $33.86 million to $179.31 million.

Cost of revenue surged 33 percent or $12.21 million during the quarter to $49.20 million. Gross margin for the quarter contracted 200 basis points over the previous year period to 72.56 percent.

Total expenses were $128 million for the quarter, up 25.78 percent or $26.23 million from year-ago period. Operating margin for the quarter contracted 142 basis points over the previous year period to 28.62 percent.

Operating income for the quarter was $51.31 million, compared with $43.68 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $113.30 million compared with $94.39 million in the prior year period. At the same time, adjusted EBITDA margin contracted 171 basis points in the quarter to 63.18 percent from 64.90 percent in the last year period.

For financial year 2017, the company projects diluted earnings per share to be in the range of $1.25 to $1.31.

Income from operating leases during the quarter rose 17.12 percent or $22.89 million to $156.65 million. Revenue from tenant reimbursements was $19.30 million for the quarter, up 69.20 percent or $7.89 million from year-ago period.

Revenue from other real estate activities during the quarter was $3.36 million, up 1,072.13 percent or $3.08 million from year-ago period.

"We delivered a solid first quarter at KRC," said John Kilroy, the company’s chairman, president and chief executive officer, “with an especially strong leasing performance in our stabilized portfolio that reflects both the strength of our markets and the appeal of our well-located and well-designed contemporary work environments. We plan to build on this strong start throughout the year, focusing on quality execution across our leasing, development, acquisition and capital recycling programs."

Net receivables were at $13.74 million as on Mar. 31, 2017, up 44.03 percent or $4.20 million from year-ago.

Investments stood at $15.16 million as on Mar. 31, 2017, up 13 percent or $1.75 million from year-ago.

Total assets grew 12.73 percent or $789.56 million to $6,993.66 million on Mar. 31, 2017. On the other hand, total liabilities were at $3,027.52 million as on Mar. 31, 2017, up 8.93 percent or $248.11 million from year-ago.

Return on assets moved down 228 basis points to 0.78 percent in the quarter. At the same time, return on equity moved down 433 basis points to 0.66 percent in the quarter.