x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Kilroy Realty Corporation | Maryland | 95-4598246 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Kilroy Realty, L.P. | Delaware | 95-4612685 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
12200 W. Olympic Boulevard, Suite 200, Los Angeles, California 90064 | ||
(Address of principal executive offices) (Zip Code) | ||
Registrant’s telephone number, including area code: (310) 481-8400 | ||
Securities registered pursuant to Section 12(b) of the Act: |
Registrant | Title of each class | Name of each exchange on which registered |
Kilroy Realty Corporation | Common Stock, $.01 par value | New York Stock Exchange |
Kilroy Realty Corporation | 6.875% Series G Cumulative Redeemable Preferred Stock, $.01 par value | New York Stock Exchange |
Kilroy Realty Corporation | 6.375% Series H Cumulative Redeemable Preferred Stock, $.01 par value | New York Stock Exchange |
Registrant | Title of each class |
Kilroy Realty, L.P. | Common Units Representing Limited Partnership Interests |
Kilroy Realty Corporation | |||||||
x | Large accelerated filer | o | Accelerated filer | o | Non-accelerated filer (Do not check if a smaller reporting company) | o | Smaller reporting company |
Kilroy Realty, L.P. | |||||||
o | Large accelerated filer | o | Accelerated filer | x | Non-accelerated filer (Do not check if a smaller reporting company) | o | Smaller reporting company |
◦ | —Liquidity and Capital Resources of the Company; and |
◦ | —Liquidity and Capital Resources of the Operating Partnership; |
◦ | Note |
◦ | Note |
◦ | Note |
◦ | Note |
◦ | Note 13, Stockholders’ Equity of the Company; |
◦ | Note |
◦ | Note |
◦ | Note |
◦ | Note |
◦ | Note 25, Supplemental Cash Flow Information of the Operating Partnership; |
◦ | Note 27, Quarterly Financial Information of the Company (Unaudited); and |
◦ | Note |
Page | |||
PART I | |||
Item 1. | |||
Item 1A. | |||
Item 1B. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II | |||
Item 5. | 43 | ||
44 | |||
Item 6. | |||
Item 7. | |||
Item 7A. | |||
Item 8. | |||
Item 9. | |||
Item 9A. | |||
Item 9B. | |||
PART III | |||
Item 10. | |||
Item 11. | |||
Item 12. | |||
Item 13. | |||
Item 14. | |||
PART IV | |||
Item 15. | |||
ITEM 1. | BUSINESS |
Number of Buildings | Rentable Square Feet | Number of Tenants | Percentage Occupied | ||||||||
Stabilized Office Properties | 111 | 14,096,617 | 526 | 94.4 | % |
Number of Buildings | Rentable Square Feet | Number of Tenants | Percentage Occupied | Percentage Leased | ||||||||||
Stabilized Office Properties | 108 | 14,025,856 | 549 | 96.0 | % | 97.0 | % |
Number of Buildings | Number of Units | Percentage Occupied | Percentage Leased | ||||||||
Stabilized Residential Property | 1 | 200 | 46.0 | % | 56.5 | % |
Number of Properties/Projects | Estimated Rentable Square Feet (1) | |||
Development projects under construction | 6 | 1,732,000 |
Number of Properties/Projects | Estimated Office Rentable Square Feet | |||
Properties held for sale (1) | 1 | 67,995 | ||
Development project in “lease-up” (2) | 1 | 377,000 | ||
Development projects under construction (2)(3) | 3 | 1,100,000 |
(1) | See Note 4 “Dispositions and Real Estate Assets Held for Sale” to our consolidated financial statements included in this report for additional information. |
(2) | Estimated rentable square feet upon completion. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of |
(3) | Development projects under construction also include 96,000 square feet of retail space and 237 residential units in addition to the estimated office rentable square feet noted above. |
Year (1) | Energy Consumption Data Coverage as % of Floor Area (2) | Total Energy Consumed by Portfolio Area with Data Coverage (MWh) (3) | % of Energy Generated From Renewable Resources | Like-for-Like Change in Energy Consumption of Portfolio Area with Data Coverage (4) | % of Eligible Portfolio that has Obtained an Energy Rating and is Certified to ENERGY STAR | |||||
2015 | 92 | % | 273,381 | 3 | % | (5 | )% | 65 | % | |
2014 | 88 | % | 267,391 | 5 | % | (2 | )% | 56 | % | |
2013 | 84 | % | 261,191 | 3 | % | (2 | )% | 53 | % |
Year (1) | Water Withdrawal Data Coverage as a % of Total Floor Area (5) | Total Water Withdrawn by Portfolio Area (kgal) (6) | Like-for-like Change in Water Withdrawn for Portfolio Area with Data Coverage (4) | |||
2015 | 94 | % | 832,737 | (11 | )% | |
2014 | 92 | % | 950,357 | (2 | )% | |
2013 | 89 | % | 900,809 | 1 | % |
(1) | Full 2016 calendar year energy and water data is not available until March 30, 2017. 2015 is the most recent year for which full energy and water data is available and verified by a third party. |
(2) | Floor area is considered to have complete energy consumption data coverage when energy consumption data (i.e., energy types and amounts consumed) is obtained by the Company for all types of energy consumed in the relevant floor area during the fiscal year, regardless of when such data was obtained. |
(3) | The scope of energy includes energy purchased from sources external to the Company and its tenants or produced by the Company or its tenants themselves (self-generated) and energy from all sources, including direct fuel usage, purchased electricity, and heating, cooling and steam energy. |
(4) | Data reported in MWh on a like-for-like comparison excludes assets which have been acquired, disposed, under development or have been largely refurbished over the past twenty-four months. |
(5) | Floor area is considered to have complete water withdrawal data coverage when water withdrawal data (i.e., amounts withdrawn) is obtained by the registrant in the relevant floor area during the fiscal year, regardless of when such data was obtained. |
(6) | Water sources include surface water (including water from wetlands, rivers, lakes and oceans), groundwater, rainwater collected directly and stored by the registrant, wastewater obtained from other entities, municipal water supplies or supply from other water utilities. |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
Number of Buildings | Rentable Square Feet | Number of Tenants | Percentage Occupied | ||||||||
Stabilized Office Properties | 111 | 14,096,617 | 526 | 94.4 | % |
Number of Buildings | Rentable Square Feet | Number of Tenants | Percentage Occupied | Percentage Leased | ||||||||||
Stabilized Office Properties | 108 | 14,025,856 | 549 | 96.0 | % | 97.0 | % |
Number of Buildings | Number of Units | Percentage Occupied | Percentage Leased | ||||||||
Stabilized Residential Property | 1 | 200 | 46.0 | % | 56.5 | % |
Number of Properties/Projects | Estimated Rentable Square Feet (1) | |||
Development projects under construction | 6 | 1,732,000 |
Number of Properties/Projects | Estimated Office Rentable Square Feet | |||
Properties held for sale (1) | 1 | 67,995 | ||
Development project in “lease-up” (2) | 1 | 377,000 | ||
Development projects under construction (2)(3) | 3 | 1,100,000 |
(1) | See Note 4 “Dispositions and Real Estate Assets Held for Sale” to our consolidated financial statements included in this report for additional information. |
(2) | Estimated rentable square feet upon completion. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations —Factors That May Influence Future Results of Operations —Completed, In-Process and Future Development Pipeline” for more information. |
(3) | Development projects under construction also include 96,000 square feet of retail space and 237 residential units in addition to the estimated office rentable square feet noted above. |
Property Location | No. of Buildings | Year Built/ Renovated | Rentable Square Feet | Percentage Occupied at 12/31/2014 (1) | Annualized Base Rent (in $000’s) (2) | Annualized Rent Per Square Foot (2) | No. of Buildings | Year Built/ Renovated | Rentable Square Feet | Percentage Occupied at 12/31/2016 (1) | Annualized Base Rent (in $000’s) (2) | Annualized Rent Per Square Foot (2) | ||||||||||||||||||||||||
Los Angeles and Ventura Counties | Los Angeles and Ventura Counties | Los Angeles and Ventura Counties | ||||||||||||||||||||||||||||||||||
23925 Park Sorrento, Calabasas, California | (3) | 1 | 2001 | 11,789 | 100.0 | % | $ | 421 | $ | 35.72 | (3) | 1 | 2001 | 11,789 | 100.0 | % | $ | 421 | $ | 35.72 | ||||||||||||||||
23975 Park Sorrento, Calabasas, California | (3) | 1 | 2002 | 104,797 | 100.0 | % | 3,482 | 34.10 | (3) | 1 | 2002 | 104,797 | 100.0 | % | 3,675 | 35.99 | ||||||||||||||||||||
24025 Park Sorrento, Calabasas, California | (3) | 1 | 2000 | 108,671 | 96.9 | % | 3,638 | 34.56 | (3) | 1 | 2000 | 108,670 | 97.4 | % | 3,818 | 36.08 | ||||||||||||||||||||
2829 Townsgate Road, Thousand Oaks, California | (3) | 1 | 1990 | 81,067 | 100.0 | % | 2,306 | 28.45 | (3) | 1 | 1990 | 84,098 | 100.0 | % | 2,351 | 27.95 | ||||||||||||||||||||
2240 E. Imperial Highway, El Segundo, California | (4) | 1 | 1983/ 2008 | 122,870 | 100.0 | % | 4,129 | 33.60 | (4) | 1 | 1983/ 2008 | 122,870 | 100.0 | % | 3,950 | 32.15 | ||||||||||||||||||||
2250 E. Imperial Highway, El Segundo, California | (8) | 1 | 1983 | 298,728 | 100.0 | % | 9,779 | 32.87 | (7) | 1 | 1983 | 298,728 | 100.0 | % | 9,523 | 32.01 | ||||||||||||||||||||
2260 E. Imperial Highway, El Segundo, California | (4) | 1 | 1983/ 2012 | 298,728 | 100.0 | % | 10,497 | 35.14 | (4) | 1 | 1983/ 2012 | 298,728 | 100.0 | % | 10,510 | 35.18 | ||||||||||||||||||||
909 Sepulveda Blvd., El Segundo, California | (3) | 1 | 1972/ 2005 | 241,607 | 100.0 | % | 6,643 | 27.82 | (3) | 1 | 1972/ 2005 | 244,136 | 93.8 | % | 6,325 | 29.10 | ||||||||||||||||||||
999 Sepulveda Blvd., El Segundo, California | (3) | 1 | 1962/ 2003 | 128,592 | 92.7 | % | 2,861 | 24.43 | (3) | 1 | 1962/ 2003 | 128,588 | 95.4 | % | 3,133 | 26.58 | ||||||||||||||||||||
6255 W. Sunset Blvd, Los Angeles, California | (9) | 1 | 1971/ 1999 | 324,617 | 90.6 | % | 10,256 | 35.71 | ||||||||||||||||||||||||||||
6115 W. Sunset Blvd., Los Angeles, California | (5) | 1 | 1938/ 2015 | 26,105 | 98.4 | % | 1,566 | 60.97 | ||||||||||||||||||||||||||||
6121 W. Sunset Blvd., Los Angeles, California | (5) | 1 | 1938/ 2015 | 91,173 | 100.0 | % | 4,133 | 45.33 | ||||||||||||||||||||||||||||
6255 Sunset Blvd, Los Angeles, California | (8) | 1 | 1971/ 1999 | 323,922 | 99.6 | % | 12,466 | 39.99 | ||||||||||||||||||||||||||||
3750 Kilroy Airport Way, Long Beach, California | (3) | 1 | 1989 | 10,457 | 86.1 | % | 109 | 19.95 | (3) | 1 | 1989 | 10,457 | 86.1 | % | 109 | 19.95 | ||||||||||||||||||||
3760 Kilroy Airport Way, Long Beach, California | (3) | 1 | 1989 | 165,278 | 75.3 | % | 3,726 | 29.95 | ||||||||||||||||||||||||||||
3780 Kilroy Airport Way, Long Beach, California | (3) | 1 | 1989 | 219,822 | 83.4 | % | 4,335 | 24.19 | ||||||||||||||||||||||||||||
3800 Kilroy Airport Way, Long Beach, California | (3) | 1 | 2000 | 192,476 | 98.5 | % | 5,792 | 30.55 | ||||||||||||||||||||||||||||
3840 Kilroy Airport Way, Long Beach, California | (3) | 1 | 1999 | 136,026 | 100.0 | % | 4,915 | 36.13 | ||||||||||||||||||||||||||||
3880 Kilroy Airport Way, Long Beach, California | (10) | 1 | 1987/ 2013 | 96,035 | 100.0 | % | 2,793 | 29.08 | ||||||||||||||||||||||||||||
3900 Kilroy Airport Way, Long Beach, California | (3) | 1 | 1987 | 126,840 | 90.8 | % | 2,801 | 24.36 | ||||||||||||||||||||||||||||
12100 W. Olympic Blvd., Los Angeles, California | (3) | 1 | 2003 | 150,167 | 94.4 | % | 5,421 | 38.23 | ||||||||||||||||||||||||||||
12200 W. Olympic Blvd., Los Angeles, California | (3) | 1 | 2000 | 150,117 | 97.9 | % | 4,438 | 31.48 | ||||||||||||||||||||||||||||
12233 W. Olympic Blvd., Los Angeles, California | (11) | 1 | 1980/ 2011 | 151,029 | 94.5 | % | 2,115 | 39.37 |
Property Location | No. of Buildings | Year Built/ Renovated | Rentable Square Feet | Percentage Occupied at 12/31/2014 (1) | Annualized Base Rent (in $000’s) (2) | Annualized Rent Per Square Foot (2) | No. of Buildings | Year Built/ Renovated | Rentable Square Feet | Percentage Occupied at 12/31/2016 (1) | Annualized Base Rent (in $000’s) (2) | Annualized Rent Per Square Foot (2) | ||||||||||||||||||||||||
12312 W. Olympic Blvd, Los Angeles, California | (12) | 1 | 1950/ 1997 | 76,644 | — | % | — | — | ||||||||||||||||||||||||||||
3760 Kilroy Airport Way, Long Beach, California | (3) | 1 | 1989 | 165,278 | 100.0 | % | 5,142 | 31.11 | ||||||||||||||||||||||||||||
3780 Kilroy Airport Way, Long Beach, California | (3) | 1 | 1989 | 219,745 | 82.0 | % | 5,068 | 28.79 | ||||||||||||||||||||||||||||
3800 Kilroy Airport Way, Long Beach, California | (3) | 1 | 2000 | 192,476 | 85.8 | % | 5,234 | 31.70 | ||||||||||||||||||||||||||||
3840 Kilroy Airport Way, Long Beach, California | (3) | 1 | 1999 | 136,026 | 100.0 | % | 4,915 | 36.13 | ||||||||||||||||||||||||||||
3880 Kilroy Airport Way, Long Beach, California | (9) | 1 | 1987/ 2013 | 96,035 | 100.0 | % | 2,839 | 29.56 | ||||||||||||||||||||||||||||
3900 Kilroy Airport Way, Long Beach, California | (3) | 1 | 1987 | 129,893 | 96.1 | % | 2,996 | 24.05 | ||||||||||||||||||||||||||||
8560 West Sunset Blvd, West Hollywood, California | (3) | 1 | 1963/ 2007 | 71,875 | 83.9 | % | 4,222 | 70.01 | ||||||||||||||||||||||||||||
8570 West Sunset Blvd, West Hollywood, California | (3) | 1 | 2002/ 2007 | 43,603 | 78.8 | % | 1,835 | 53.42 | ||||||||||||||||||||||||||||
8580 West Sunset Blvd, West Hollywood, California | (5) | 1 | 2002/ 2007 | 7,126 | 100.0 | % | — | — | ||||||||||||||||||||||||||||
8590 West Sunset Blvd, West Hollywood, California | (10) | 1 | 2002/ 2007 | 56,095 | 97.3 | % | 1,901 | 34.83 | ||||||||||||||||||||||||||||
12100 W. Olympic Blvd., Los Angeles, California | (3) | 1 | 2003 | 152,048 | 100.0 | % | 7,204 | 47.38 | ||||||||||||||||||||||||||||
12200 W. Olympic Blvd., Los Angeles, California | (3) | 1 | 2000 | 150,832 | 94.6 | % | 4,290 | 39.67 | ||||||||||||||||||||||||||||
12233 W. Olympic Blvd., Los Angeles, California | (11) | 1 | 1980/ 2011 | 151,029 | 88.2 | % | 3,757 | 50.51 | ||||||||||||||||||||||||||||
12312 W. Olympic Blvd., Los Angeles, California | (6) | 1 | 1950/ 1997 | 76,644 | 100.0 | % | 4,096 | 53.44 | ||||||||||||||||||||||||||||
1633 26th Street, Santa Monica, California | (3) | 1 | 1972/ 1997 | 44,915 | 100.0 | % | 1,270 | 28.28 | (4) | 1 | 1972/ 1997 | 44,915 | 100.0 | % | 1,270 | 28.28 | ||||||||||||||||||||
2100/2110 Colorado Avenue, Santa Monica, California | (3) | 3 | 1992/ 2009 | 102,864 | 100.0 | % | 4,357 | 42.36 | (3) | 3 | 1992/ 2009 | 102,864 | 100.0 | % | 4,357 | 42.36 | ||||||||||||||||||||
3130 Wilshire Blvd., Santa Monica, California | (3) | 1 | 1969/ 1998 | 88,339 | 95.7 | % | 2,762 | 33.59 | (3) | 1 | 1969/ 1998 | 88,340 | 68.7 | % | 2,146 | 35.34 | ||||||||||||||||||||
501 Santa Monica Blvd., Santa Monica, California | (3) | 1 | 1974 | 73,115 | 78.8 | % | 2,558 | 45.70 | (3) | 1 | 1974 | 73,212 | 77.2 | % | 2,802 | 59.57 | ||||||||||||||||||||
Subtotal/Weighted Average – Los Angeles and Ventura Counties | 27 | 3,505,590 | 92.8 | % | $ | 101,404 | $ | 32.39 | 33 | 3,812,097 | 95.0 | % | $ | 126,054 | $ | 36.24 | ||||||||||||||||||||
Orange County | ||||||||||||||||||||||||||||||||||||
2211 Michelson, Irvine, California | (3) | 1 | 2007 | 271,556 | 98.7 | % | $ | 9,736 | $ | 36.72 | (3) | 1 | 2007 | 271,556 | 97.8 | % | $ | 9,982 | $ | 38.07 | ||||||||||||||||
Subtotal/Weighted Average – Orange County | 1 | 271,556 | 98.7 | % | $ | 9,736 | $ | 36.72 | 1 | 271,556 | 97.8 | % | $ | 9,982 | $ | 38.07 | ||||||||||||||||||||
San Diego County | ||||||||||||||||||||||||||||||||||||
12225 El Camino Real, Del Mar, California | (4) | 1 | 1998 | 58,401 | 100.0 | % | $ | 1,965 | $ | 33.64 | (4) | 1 | 1998 | 58,401 | 100.0 | % | $ | 1,965 | $ | 33.64 | ||||||||||||||||
12235 El Camino Real, Del Mar, California | (4) | 1 | 1998 | 54,673 | 82.1 | % | 1,648 | 36.71 | (4) | 1 | 1998 | 53,751 | 100.0 | % | 2,470 | 45.96 | ||||||||||||||||||||
12340 El Camino Real, Del Mar, California | (4) | 1 | 2002 | 87,374 | 88.8 | % | 3,370 | 43.43 | (12) | 1 | 2002 | 87,774 | 100.0 | % | 3,501 | 43.62 | ||||||||||||||||||||
12390 El Camino Real, Del Mar, California | (4) | 1 | 2000 | 72,332 | 100.0 | % | 3,069 | 42.44 | (4) | 1 | 2000 | 72,332 | 100.0 | % | 3,069 | 42.44 | ||||||||||||||||||||
12770 El Camino Real, Del Mar, California | (13) | 1 | 2016 | 73,032 | — | % | — | — | ||||||||||||||||||||||||||||
12348 High Bluff Drive, Del Mar, California | (13) | 1 | 1999 | 38,806 | 100.0 | % | 1,275 | 32.86 | (3) | 1 | 1999 | 38,806 | 100.0 | % | 916 | 31.37 | ||||||||||||||||||||
12400 High Bluff Drive, Del Mar, California | (4) | 1 | 2004 | 209,220 | 100.0 | % | 10,670 | 51.00 | (4) | 1 | 2004 | 209,220 | 100.0 | % | 10,671 | 51.00 | ||||||||||||||||||||
3579 Valley Centre Drive, Del Mar, California | (4) | 1 | 1999 | 50,677 | 100.0 | % | 1,902 | 37.54 | (4) | 1 | 1999 | 52,418 | 100.0 | % | 2,040 | 38.91 | ||||||||||||||||||||
3611 Valley Centre Drive, Del Mar, California | (4) | 1 | 2000 | 130,349 | 96.3 | % | 5,202 | 41.43 | (4) | 1 | 2000 | 130,047 | 100.0 | % | 5,451 | 41.92 | ||||||||||||||||||||
3661 Valley Centre Drive, Del Mar, California | (4) | 1 | 2001 | 129,782 | 89.7 | % | 3,410 | 36.03 | ||||||||||||||||||||||||||||
3721 Valley Centre Drive, Del Mar, California | (4) | 1 | 2003 | 114,780 | 79.9 | % | 4,155 | 45.28 | ||||||||||||||||||||||||||||
3811 Valley Centre Drive, Del Mar, California | (5) | 1 | 2000 | 112,067 | 100.0 | % | 5,199 | 46.39 | ||||||||||||||||||||||||||||
7525 Torrey Santa Fe, 56 Corridor, California | (5) | 1 | 2007 | 103,979 | 100.0 | % | 3,012 | 28.97 | ||||||||||||||||||||||||||||
7535 Torrey Santa Fe, 56 Corridor, California | (5) | 1 | 2007 | 130,243 | 100.0 | % | 3,693 | 28.35 | ||||||||||||||||||||||||||||
7545 Torrey Santa Fe, 56 Corridor, California | (5) | 1 | 2007 | 130,354 | 100.0 | % | 3,609 | 27.68 | ||||||||||||||||||||||||||||
7555 Torrey Santa Fe, 56 Corridor, California | (5) | 1 | 2007 | 101,236 | 100.0 | % | 3,175 | 31.36 | ||||||||||||||||||||||||||||
12780 El Camino Real, Del Mar, California | (5) | 1 | 2013 | 140,591 | 100.0 | % | 6,366 | 45.28 | ||||||||||||||||||||||||||||
12790 El Camino Real, Del Mar, California | (4) | 1 | 2013 | 78,349 | 100.0 | % | 3,196 | 40.79 | ||||||||||||||||||||||||||||
13280 Evening Creek Drive South, I-15 Corridor, California | (3) | 1 | 2008 | 41,196 | 86.6 | % | 889 | 24.91 | ||||||||||||||||||||||||||||
13290 Evening Creek Drive South, I-15 Corridor, California | (4) | 1 | 2008 | 61,180 | 100.0 | % | 1,453 | 23.75 | ||||||||||||||||||||||||||||
13480 Evening Creek Drive North, I-15 Corridor, California | (4) | 1 | 2008 | 149,817 | 100.0 | % | 7,779 | 51.92 | ||||||||||||||||||||||||||||
13500 Evening Creek Drive North, I-15 Corridor, California | (4) | 1 | 2004 | 147,533 | 100.0 | % | 6,286 | 42.61 |
Property Location | No. of Buildings | Year Built/ Renovated | Rentable Square Feet | Percentage Occupied at 12/31/2014 (1) | Annualized Base Rent (in $000’s) (2) | Annualized Rent Per Square Foot (2) | No. of Buildings | Year Built/ Renovated | Rentable Square Feet | Percentage Occupied at 12/31/2016 (1) | Annualized Base Rent (in $000’s) (2) | Annualized Rent Per Square Foot (2) | ||||||||||||||||||||||||
3661 Valley Centre Drive, Del Mar, California | (14) | 1 | 2001 | 128,330 | 92.5 | % | 3,561 | 36.12 | ||||||||||||||||||||||||||||
3721 Valley Centre Drive, Del Mar, California | (15) | 1 | 2003 | 115,193 | 100.0 | % | 5,309 | 46.09 | ||||||||||||||||||||||||||||
3811 Valley Centre Drive, Del Mar, California | (6) | 1 | 2000 | 112,067 | 100.0 | % | 5,199 | 46.39 | ||||||||||||||||||||||||||||
12780 El Camino Real, Del Mar, California | (6) | 1 | 2013 | 140,591 | 100.0 | % | 6,366 | 45.28 | ||||||||||||||||||||||||||||
12790 El Camino Real, Del Mar, California | (4) | 1 | 2013 | 78,836 | 100.0 | % | 3,275 | 41.55 | ||||||||||||||||||||||||||||
13280 Evening Creek Drive South, I-15 Corridor, California | (3) | 1 | 2008 | 41,196 | 100.0 | % | 1,078 | 26.17 | ||||||||||||||||||||||||||||
13290 Evening Creek Drive South, I-15 Corridor, California | (4) | 1 | 2008 | 61,180 | 100.0 | % | 1,453 | 23.75 | ||||||||||||||||||||||||||||
13480 Evening Creek Drive North, I-15 Corridor, California | (4) | 1 | 2008 | 149,817 | 100.0 | % | 7,779 | 51.92 | ||||||||||||||||||||||||||||
13500 Evening Creek Drive North, I-15 Corridor, California | (4) | 1 | 2004 | 147,533 | 100.0 | % | 6,286 | 42.61 | ||||||||||||||||||||||||||||
13520 Evening Creek Drive North, I-15 Corridor, California | (4) | 1 | 2004 | 141,128 | 96.6 | % | 4,829 | 36.19 | (16) | 1 | 2004 | 141,128 | 96.4 | % | 4,914 | 36.93 | ||||||||||||||||||||
2355 Northside Drive, Mission Valley, California | (3) | 1 | 1990 | 53,610 | 87.4 | % | 1,197 | 26.42 | (3) | 1 | 1990 | 53,610 | 67.0 | % | 941 | 27.36 | ||||||||||||||||||||
2365 Northside Drive, Mission Valley, California | (3) | 1 | 1990 | 96,436 | 73.3 | % | 2,239 | 31.67 | (3) | 1 | 1990 | 96,437 | 83.0 | % | 2,552 | 31.88 | ||||||||||||||||||||
2375 Northside Drive, Mission Valley, California | (14) | 1 | 1990 | 51,516 | 91.9 | % | 1,398 | 29.54 | (17) | 1 | 1990 | 51,516 | 89.4 | % | 1,380 | 29.98 | ||||||||||||||||||||
2385 Northside Drive, Mission Valley, California | (3) | 1 | 2008 | 89,023 | 100.0 | % | 2,801 | 31.46 | (3) | 1 | 2008 | 89,023 | 95.7 | % | 2,682 | 31.49 | ||||||||||||||||||||
2305 Historic Decatur Road, Point Loma, California | (15) | 1 | 2009 | 103,900 | 46.3 | % | 1,492 | 31.12 | (18) | 1 | 2009 | 103,900 | 100.0 | % | 3,694 | 35.55 | ||||||||||||||||||||
4921 Directors Place, Sorrento Mesa, California | (4) | 1 | 2008 | 56,136 | 84.9 | % | 1,242 | 26.05 | ||||||||||||||||||||||||||||
4939 Directors Place, Sorrento Mesa, California | (5) | 1 | 2002 | 60,662 | 100.0 | % | 2,276 | 37.52 | ||||||||||||||||||||||||||||
4955 Directors Place, Sorrento Mesa, California | (5) | 1 | 2008 | 76,246 | 100.0 | % | 2,881 | 37.79 | ||||||||||||||||||||||||||||
10770 Wateridge Circle, Sorrento Mesa, California | (5) | 1 | 1989 | 174,310 | 70.8 | % | 1,854 | 15.02 | ||||||||||||||||||||||||||||
6260 Sequence Drive, Sorrento Mesa, California | (6) | 1 | 1997 | 130,536 | 100.0 | % | 2,908 | 22.28 | ||||||||||||||||||||||||||||
6290 Sequence Drive, Sorrento Mesa, California | (5) | 1 | 1997 | 90,000 | — | % | — | — | ||||||||||||||||||||||||||||
6310 Sequence Drive, Sorrento Mesa, California | (5) | 1 | 2000 | 62,415 | 100.0 | % | 1,295 | 20.75 | ||||||||||||||||||||||||||||
6340 Sequence Drive, Sorrento Mesa, California | (5) | 1 | 1998 | 66,400 | 100.0 | % | 1,416 | 21.32 | ||||||||||||||||||||||||||||
6350 Sequence Drive, Sorrento Mesa, California | (6) | 1 | 1998 | 132,600 | 100.0 | % | 3,111 | 23.46 | ||||||||||||||||||||||||||||
10390 Pacific Center Court, Sorrento Mesa, California | (5) | 1 | 2002 | 68,400 | 100.0 | % | 2,771 | 40.52 | (6) | 1 | 2002 | 68,400 | 100.0 | % | 2,449 | 35.81 | ||||||||||||||||||||
10394 Pacific Center Court, Sorrento Mesa, California | (5) | 1 | 1995 | 59,630 | 100.0 | % | 1,182 | 19.83 | (5) | 1 | 1995 | 59,327 | 100.0 | % | 1,424 | 24.00 | ||||||||||||||||||||
10398 Pacific Center Court, Sorrento Mesa, California | (5) | 1 | 1995 | 43,645 | 100.0 | % | 698 | 15.99 | (6) | 1 | 1995 | 43,645 | 100.0 | % | 698 | 15.99 | ||||||||||||||||||||
10421 Pacific Center Court, Sorrento Mesa, California | (5) | 1 | 1995/ 2002 | 75,899 | 100.0 | % | 1,076 | 14.18 | (6) | 1 | 1995/ 2002 | 75,899 | 100.0 | % | 1,186 | 15.62 | ||||||||||||||||||||
10445 Pacific Center Court, Sorrento Mesa, California | (5) | 1 | 1995 | 48,709 | 100.0 | % | 936 | 19.22 | (6) | 1 | 1995 | 48,709 | 100.0 | % | 936 | 19.22 | ||||||||||||||||||||
10455 Pacific Center Court, Sorrento Mesa, California | (7) | 1 | 1995 | 90,000 | 100.0 | % | 1,112 | 12.35 | (5) | 1 | 1995 | 88,577 | 45.8 | % | 1,020 | 25.13 | ||||||||||||||||||||
5717 Pacific Center Blvd, Sorrento Mesa, California | (6) | 1 | 2001/ 2005 | 67,995 | 100.0 | % | 1,503 | 22.11 | ||||||||||||||||||||||||||||
4690 Executive Drive, UTC, California | (16) | 1 | 1999 | 47,212 | 100.0 | % | 1,077 | 22.82 | (3) | 1 | 1999 | 47,846 | 89.3 | % | 1,334 | 31.21 | ||||||||||||||||||||
6200 Greenwich Drive, Governor Park, California | (3) | 1 | 1999 | 73,507 | — | % | — | — | ||||||||||||||||||||||||||||
6220 Greenwich Drive, Governor Park, California | (4) | 1 | 1996 | 141,214 | 100.0 | % | 4,286 | 30.35 | ||||||||||||||||||||||||||||
Subtotal/Weighted Average – San Diego County | 46 | 4,244,068 | 90.9 | % | $ | 126,903 | $ | 33.12 | 31 | 2,718,541 | 93.2 | % | $ | 95,599 | $ | 38.35 | ||||||||||||||||||||
San Francisco | ||||||||||||||||||||||||||||||||||||
4100 Bohannon Drive, Menlo Park, California | (6) | 1 | 1985 | 47,379 | 100.0 | % | $ | 1,719 | $ | 36.27 | (5) | 1 | 1985 | 47,379 | 100.0 | % | $ | 1,719 | $ | 36.27 | ||||||||||||||||
4200 Bohannon Drive, Menlo Park, California | (6) | 1 | 1987 | 45,451 | 100.0 | % | 1,739 | 38.26 | (5) | 1 | 1987 | 45,451 | 100.0 | % | 1,834 | 40.34 | ||||||||||||||||||||
4300 Bohannon Drive, Menlo Park, California | (6) | 1 | 1988 | 63,079 | 100.0 | % | 2,485 | 39.39 | (5) | 1 | 1988 | 63,079 | 100.0 | % | 2,920 | 46.30 | ||||||||||||||||||||
4400 Bohannon Drive, Menlo Park, California | (5) | 1 | 1988 | 48,146 | 100.0 | % | 1,593 | 35.27 | ||||||||||||||||||||||||||||
4500 Bohannon Drive, Menlo Park, California | (5) | 1 | 1990 | 63,078 | 100.0 | % | 2,041 | 32.35 | ||||||||||||||||||||||||||||
4600 Bohannon Drive, Menlo Park, California | (19) | 1 | 1990 | 48,147 | 100.0 | % | 2,681 | 55.69 | ||||||||||||||||||||||||||||
4700 Bohannon Drive, Menlo Park, California | (5) | 1 | 1989 | 63,078 | 100.0 | % | 2,275 | 36.07 | ||||||||||||||||||||||||||||
1290-1300 Terra Bella Avenue, Mountain View, California | (5) | 1 | 1961 | 114,175 | 100.0 | % | 3,841 | 33.64 |
Property Location | No. of Buildings | Year Built/ Renovated | Rentable Square Feet | Percentage Occupied at 12/31/2014 (1) | Annualized Base Rent (in $000’s) (2) | Annualized Rent Per Square Foot (2) | No. of Buildings | Year Built/ Renovated | Rentable Square Feet | Percentage Occupied at 12/31/2016 (1) | Annualized Base Rent (in $000’s) (2) | Annualized Rent Per Square Foot (2) | ||||||||||||||||||||||||
4400 Bohannon Drive, Menlo Park, California | (6) | 1 | 1988 | 48,146 | 100.0 | % | 1,489 | 32.97 | ||||||||||||||||||||||||||||
4500 Bohannon Drive, Menlo Park, California | (6) | 1 | 1990 | 63,078 | 100.0 | % | 2,041 | 32.35 | ||||||||||||||||||||||||||||
4600 Bohannon Drive, Menlo Park, California | (17) | 1 | 1990 | 48,147 | 100.0 | % | 1,172 | 40.92 | ||||||||||||||||||||||||||||
4700 Bohannon Drive, Menlo Park, California | (6) | 1 | 1989 | 63,078 | 100.0 | % | 2,275 | 36.07 | ||||||||||||||||||||||||||||
331 Fairchild Drive, Mountain View, California | (5) | 1 | 2013 | 87,147 | 100.0 | % | 4,185 | 48.03 | (6) | 1 | 2013 | 87,147 | 100.0 | % | 4,186 | 48.03 | ||||||||||||||||||||
680 E. Middlefield Road Mountain View, California | (5) | 1 | 2014 | 170,090 | 100.0 | % | 7,666 | 45.07 | ||||||||||||||||||||||||||||
690 E. Middlefield Road Mountain View, California | (5) | 1 | 2014 | 170,823 | 100.0 | % | 7,699 | 45.07 | ||||||||||||||||||||||||||||
680 E. Middlefield Road, Mountain View, California | (6) | 1 | 2014 | 170,090 | 100.0 | % | 7,729 | 45.44 | ||||||||||||||||||||||||||||
690 E. Middlefield Road, Mountain View, California | (6) | 1 | 2014 | 170,823 | 100.0 | % | 7,763 | 45.44 | ||||||||||||||||||||||||||||
1701 Page Mill Road, Palo Alto, California | (5) | 1 | 2015 | 128,688 | 100.0 | % | 8,461 | 65.75 | ||||||||||||||||||||||||||||
3150 Porter Drive, Palo Alto, California | (6) | 1 | 1998 | 36,897 | 100.0 | % | 2,051 | 55.59 | ||||||||||||||||||||||||||||
900 Jefferson Avenue, Redwood City, California | (5) | 1 | 2015 | 228,505 | 100.0 | % | 13,670 | 59.82 | ||||||||||||||||||||||||||||
900 Middlefield Road, Redwood City, California | (5) | 1 | 2015 | 118,764 | 97.3 | % | 6,835 | 59.38 | ||||||||||||||||||||||||||||
303 Second Street, San Francisco, California | (18) | 1 | 1988 | 740,047 | 97.9 | % | 32,410 | 44.94 | (20) | 1 | 1988 | 740,047 | 95.2 | % | 36,952 | 52.67 | ||||||||||||||||||||
100 First Street, San Francisco, California | (19) | 1 | 1988 | 466,490 | 95.7 | % | 21,182 | 48.33 | (21) | 1 | 1988 | 467,095 | 91.3 | % | 21,648 | 53.21 | ||||||||||||||||||||
250 Brannan Street, San Francisco, California | (4) | 1 | 1907/ 2001 | 95,008 | 100.0 | % | 5,413 | 56.98 | (4) | 1 | 1907/ 2001 | 95,008 | 100.0 | % | 5,413 | 56.98 | ||||||||||||||||||||
201 Third Street, San Francisco, California | (3) | 1 | 1983 | 344,551 | 92.2 | % | 13,755 | 44.93 | (22) | 1 | 1983 | 346,538 | 90.4 | % | 17,202 | 55.81 | ||||||||||||||||||||
301 Brannan Street, San Francisco, California | (4) | 1 | 1909/ 1989 | 74,430 | 100.0 | % | 3,336 | 44.82 | (4) | 1 | 1909/ 1989 | 74,430 | 100.0 | % | 4,092 | 54.98 | ||||||||||||||||||||
360 Third Street, San Francisco, California | (20) | 1 | 2013 | 429,996 | 99.2 | % | 20,595 | 48.40 | (23) | 1 | 2013 | 429,796 | 100.0 | % | 21,594 | 50.35 | ||||||||||||||||||||
333 Brannan Street, San Francisco, California | (4) | 1 | 2016 | 185,602 | 98.1 | % | 14,827 | 81.44 | ||||||||||||||||||||||||||||
350 Mission Street, San Francisco, California | (5) | 1 | 2016 | 455,340 | 98.0 | % | 23,450 | 52.78 | ||||||||||||||||||||||||||||
1310 Chesapeake Terrace, Sunnyvale, California | (6) | 1 | 1989 | 76,244 | 100.0 | % | 2,369 | 31.08 | (5) | 1 | 1989 | 76,244 | 100.0 | % | 2,369 | 31.08 | ||||||||||||||||||||
1315 Chesapeake Terrace, Sunnyvale, California | (6) | 1 | 1989 | 55,635 | 100.0 | % | 1,424 | 25.60 | (5) | 1 | 1989 | 55,635 | 100.0 | % | 1,424 | 25.60 | ||||||||||||||||||||
1320-1324 Chesapeake Terrace, Sunnyvale, California | (6) | 1 | 1989 | 79,720 | 52.0 | % | (21) | 1,271 | 30.67 | (5) | 1 | 1989 | 79,720 | 100.0 | % | 2,421 | 30.36 | |||||||||||||||||||
1325-1327 Chesapeake Terrace, Sunnyvale, California | (6) | 1 | 1989 | 55,383 | 100.0 | % | 1,234 | 22.29 | (5) | 1 | 1989 | 55,383 | 100.0 | % | 1,234 | 22.29 | ||||||||||||||||||||
505 N. Mathilda Avenue, Sunnyvale, California | (5) | 1 | 2014 | 212,322 | 100.0 | % | 9,449 | 44.50 | (5) | 1 | 2014 | 212,322 | 100.0 | % | 9,449 | 44.50 | ||||||||||||||||||||
555 N. Mathilda Avenue, Sunnyvale, California | (5) | 1 | 2014 | 212,322 | 100.0 | % | 9,449 | 44.50 | (5) | 1 | 2014 | 212,322 | 100.0 | % | 9,449 | 44.50 | ||||||||||||||||||||
605 N. Mathilda Avenue, Sunnyvale, California | (5) | 1 | 2014 | 162,785 | 100.0 | % | 7,244 | 44.50 | (5) | 1 | 2014 | 162,785 | 100.0 | % | 7,245 | 44.50 | ||||||||||||||||||||
599 N. Mathilda Avenue, Sunnyvale, California | (5) | 1 | 2000 | 75,810 | 100.0 | % | 2,202 | 29.04 | (5) | 1 | 2000 | 75,810 | 100.0 | % | 2,203 | 29.04 | ||||||||||||||||||||
Subtotal/Weighted Average – San Francisco | 24 | 3,887,161 | 97.3 | % | $ | 163,803 | $ | 43.84 | 31 | 5,157,524 | 97.6 | % | $ | 250,571 | $ | 50.13 | ||||||||||||||||||||
Greater Seattle | ||||||||||||||||||||||||||||||||||||
601 108th Avenue NE, Bellevue, Washington | (6) | 1 | 2000 | 488,470 | 99.3 | % | $ | 16,408 | $ | 34.19 | (24) | 1 | 2000 | 488,470 | 99.6 | % | $ | 17,222 | $ | 35.77 | ||||||||||||||||
10900 NE 4th Street, Bellevue, Washington | (3) | 1 | 1983 | 416,755 | 97.4 | % | 14,532 | 35.93 | (3) | 1 | 1983 | 416,755 | 95.4 | % | 14,375 | 36.29 | ||||||||||||||||||||
10210 NE Points Drive, Kirkland, Washington | (5) | 1 | 1988 | 84,641 | 100.0 | % | 2,146 | 25.36 | ||||||||||||||||||||||||||||
10220 NE Points Drive, Kirkland, Washington | (6) | 1 | 1987 | 49,851 | 100.0 | % | 1,287 | 26.05 | (5) | 1 | 1987 | 49,851 | 100.0 | % | 1,291 | 26.14 | ||||||||||||||||||||
10230 NE Points Drive, Kirkland, Washington | (6) | 1 | 1990 | 98,982 | 76.4 | % | 2,075 | 27.96 | (5) | 1 | 1990 | 98,982 | 100.0 | % | 2,783 | 28.54 | ||||||||||||||||||||
10210 NE Points Drive, Kirkland, Washington | (6) | 1 | 1988 | 84,641 | 94.4 | % | 1,962 | 24.57 | ||||||||||||||||||||||||||||
3933 Lake Washington Blvd NE, Kirkland, Washington | (6) | 1 | 1993 | 46,450 | 100.0 | % | 1,303 | 28.06 | (5) | 1 | 1993 | 46,450 | 81.7 | % | 1,043 | 27.48 | ||||||||||||||||||||
837 N. 34th Street, Lake Union, Washington | (6) | 1 | 2008 | 111,580 | 100.0 | % | 3,255 | 29.17 | (5) | 1 | 2008 | 111,580 | 76.2 | % | 2,748 | 32.34 |
Property Location | No. of Buildings | Year Built/ Renovated | Rentable Square Feet | Percentage Occupied at 12/31/2014 (1) | Annualized Base Rent (in $000’s) (2) | Annualized Rent Per Square Foot (2) | No. of Buildings | Year Built/ Renovated | Rentable Square Feet | Percentage Occupied at 12/31/2016 (1) | Annualized Base Rent (in $000’s) (2) | Annualized Rent Per Square Foot (2) | ||||||||||||||||||||||||
701 N. 34th Street, Lake Union, Washington | (6) | 1 | 1998 | 138,995 | 100.0 | % | 2,719 | 19.56 | (5) | 1 | 1998 | 138,994 | 98.7 | % | 4,654 | 33.92 | ||||||||||||||||||||
801 N. 34th Street, Lake Union, Washington | (5) | 1 | 1998 | 169,412 | 100.0 | % | 4,423 | 26.11 | (6) | 1 | 1998 | 169,412 | 100.0 | % | 4,423 | 26.11 | ||||||||||||||||||||
320 Westlake Terry Avenue North, Lake Union, Washington | (6) | 1 | 2007 | 184,643 | 100.0 | % | 6,314 | 34.20 | (5) | 1 | 2007 | 184,643 | 100.0 | % | 6,331 | 34.29 | ||||||||||||||||||||
321 Terry Avenue North, Lake Union, Washington | (6) | 1 | 2013 | 135,755 | 100.0 | % | 4,465 | 32.89 | (5) | 1 | 2013 | 135,755 | 100.0 | % | 4,465 | 32.89 | ||||||||||||||||||||
15050 NE 36th Street Redmond, Washington | (5) | 1 | 1998 | 122,103 | 100.0 | % | 3,124 | 25.59 | ||||||||||||||||||||||||||||
401 Terry Avenue North, Lake Union, Washington | (5) | 1 | 2003 | 140,605 | 100.0 | % | 6,207 | 44.15 | (6) | 1 | 2003 | 140,605 | 100.0 | % | 6,207 | 44.15 | ||||||||||||||||||||
Subtotal/Weighted Average – Greater Seattle | 13 | 2,188,242 | 98.1 | % | $ | 68,074 | $ | 31.85 | 12 | 2,066,138 | 97.2 | % | $ | 67,688 | $ | 33.85 | ||||||||||||||||||||
TOTAL/WEIGHTED AVERAGE | 111 | 14,096,617 | 94.4 | % | $ | 469,920 | $ | 35.87 | 108 | 14,025,856 | 96.0 | % | $ | 549,894 | $ | 41.56 |
(1) | Based on all leases at the respective properties in effect as of December 31, |
(2) | Annualized base rental revenue includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes the impact of the following: amortization of deferred revenue related tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases and expense reimbursement revenue. Excludes month-to-month leases and vacant space as of December 31, |
(3) | For these properties, the leases are written on a full service gross basis. |
(4) | For these properties, the leases are written on a modified gross basis. |
(5) | For these properties, the leases are written on a |
(6) | For these properties, the leases are written on a |
(7) | For |
(8) | For this property, leases of approximately |
For this property, leases of approximately 46,000 rentable square feet are written on a modified net basis and approximately 50,000 rentable square feet are written on a full service gross basis. |
(10) | For this property, leases of approximately 49,000 rentable square feet are written on a full service gross basis and approximately 5,000 rentable square feet are written on a triple net basis. |
(11) | For this property, leases of approximately |
(12) |
(13) | These properties are vacant. |
(14) | For this property, leases of approximately 33,000 rentable square feet are written on a full service gross basis, and approximately 85,000 rentable square feet are written on a modified gross basis. |
(15) | For this property, leases of approximately 23,000 rentable square feet are written on a full service gross basis and approximately |
For this property, leases of approximately 19,000 rentable square feet are written on a full service gross basis and approximately 117,000 rentable square feet are written on a modified gross basis. |
(17) | For this property, leases of approximately 29,000 rentable square feet are written on a gross basis and approximately |
For this property, leases of approximately |
For this property, leases of approximately 20,000 rentable square feet are written on a gross basis and approximately 29,000 rentable square feet are written on a triple net basis. |
For this property, leases of approximately |
For this property, leases of approximately 84,000 rentable square feet are written on a gross basis, approximately |
For this property, leases of approximately |
(23) | For this property, leases of approximately 390,000 rentable square feet are written on a modified gross basis, |
Construction Period | ||||||||||
Completed Development Project | Start Date | Completion / Stabilization Date | Rentable Square Feet | % Occupied | ||||||
505, 555 and 605 N. Mathilda Avenue Sunnyvale, California | 4Q 2012 | 3Q 2014 | 587,429 | 100.0 | % | |||||
680 and 690 E. Middlefield Road Mountain View, California | 2Q 2012 | 4Q 2014 | 340,913 | 100.0 | % |
Construction Period | ||||||||||||
Stabilized Office Projects | Start Date | Completion Date | Stabilization Date | Rentable Square Feet | Office % Committed (1) | |||||||
350 Mission Street, San Francisco, California | 4Q 2012 | 3Q 2015 | 2Q 2016 | 455,340 | 100.0 | % | ||||||
333 Brannan Street, San Francisco, California | 4Q 2013 | 3Q 2015 | 2Q 2016 | 185,602 | 100.0 | % | ||||||
The Heights at Del Mar Del Mar, California | 4Q 2014 | 4Q 2015 | 4Q 2016 | 73,000 | 65.0 | % | ||||||
TOTAL: | 713,942 | 96.0 | % |
(1) | Committed space refers to executed leases or letters of intent. Commitments not supported by executed leases are not binding obligations and there can be no assurance that they will result in executed leases on the terms contemplated or at all. |
Construction Period | ||||||||||
Stabilized Residential Project | Start Date | Completion Date | Number of Units | Percentage Leased | ||||||
Columbia Square Residential | 3Q 2013 | 2Q 2016 | 200 | 56.5 | % |
Construction Period | ||||||||||||
Completed Redevelopment Project | Start Date | Completion Date | Stabilization Date | Rentable Square Feet | % Occupied | |||||||
360 Third Street San Francisco, California | 4Q 2011 | 1Q 2013 | 1Q 2014 | 429,996 | 99.2 | % |
Construction Period | ||||||||||||
Lease-up Projects | Start Date | Completion Date | Estimated Stabilization Date | Rentable Square Feet | Office % Committed (1) | |||||||
Columbia Square Phase 2 - Office Hollywood, California | 3Q 2013 | 1Q 2016 | 1Q 2017 | 377,000 | 86.0 | % |
(1) | Committed space refers to executed leases or letters of intent. Commitments not supported by executed leases are not binding obligations and there can be no assurance that they will result in executed leases on the terms contemplated or at all. |
Estimated Construction Period | Estimated Stabilization Date | Estimated Rentable Square Feet | Office % Leased | ||||||||
In-Process Development Projects | Start Date | Completion Date | |||||||||
UNDER CONSTRUCTION: | |||||||||||
San Francisco Bay Area, California | |||||||||||
350 Mission Street, San Francisco | 4Q 2012 | 4Q 2015 | 4Q 2015 | 450,000 | 100% | ||||||
333 Brannan Street, San Francisco | 4Q 2013 | 4Q 2015 | 4Q 2015 | 185,000 | 100% | ||||||
Crossing/900, Redwood City (1) | 4Q 2013 | 4Q 2015 | 1Q 2017 | 339,000 | 100% | ||||||
Los Angeles, California | |||||||||||
Columbia Square Office and Historic (2) | 2Q 2013 – 3Q 2013 | 2Q 2015 – 1Q 2016 | 2Q 2015 – 1Q 2017 | 480,000 | 59% | ||||||
Columbia Square Residential (2) | 3Q 2013 | 1Q 2016 | 1Q 2017 | 205,000 | —% | ||||||
San Diego, California | |||||||||||
The Heights at Del Mar | 4Q 2014 | 4Q 2015 | 4Q 2016 | 73,000 | —% | ||||||
SUBTOTAL: | 1,732,000 | 82% |
Estimated Construction Period | Estimated Stabilization Date | Estimated Rentable Square Feet | Office % Leased | ||||||||
In-Process Development Projects | Start Date | Completion Date | |||||||||
UNDER CONSTRUCTION: | |||||||||||
Office | |||||||||||
The Exchange on 16th (1) | 2Q 2015 | 3Q 2017 | 3Q 2018 | 700,000 | —% | ||||||
100 Hooper (2) | 4Q 2016 | 1Q 2018 | 1Q 2019 | 400,000 | 66% | ||||||
SUBTOTAL: | 1,100,000 | 20% | |||||||||
Mixed-Use | |||||||||||
One Paseo - Phase I (Retail and Residential) (3) | 4Q 2016 | 2Q 2018 | 2Q 2019 | 96,000 Retail | N/A | ||||||
237 Units |
(1) |
(2) |
(3) | In July 2016, the Company received final entitlement approval for this project. Development for this project will occur in phases. Phase I includes site work and related infrastructure for the entire project, as well as 237 residential units and approximately 96,000 square feet |
Location | Approx. Developable Square Feet(1) | ||||
NEAR-TERM DEVELOPMENT PIPELINE: | |||||
333 Dexter (2) | South Lake Union | 700,000 | |||
Academy Project | Hollywood | 545,000 | |||
One Paseo - Phases II and III (3) | Del Mar | 640,000 | |||
TOTAL: | 1,885,000 | ||||
FUTURE DEVELOPMENT PIPELINE: | |||||
TBD | |||||
9455 Towne Centre Drive | San Diego | 150,000 | |||
Pacific Corporate Center – Lot 8 | Sorrento Mesa | 170,000 | |||
Santa Fe Summit – | 56 Corridor | 600,000 | |||
(1) |
(2) |
(3) |
Tenant Name | Annualized Base Rental Revenue(1) | Percentage of Total Annualized Base Rental Revenue(1) | Lease Expiration Date | Annualized Base Rental Revenue(1)(2) | Percentage of Total Annualized Base Rental Revenue(1) | Lease Expiration Date | ||||||||||
(in thousands) | (in thousands) | |||||||||||||||
LinkedIn Corporation | $ | 28,344 | 6.0% | Various (4) | $ | 28,344 | 5.1% | Various (4) | ||||||||
salesforce.com, inc (3) | 24,183 | 4.4% | Various (5) | |||||||||||||
DIRECTV, LLC | 22,964 | 4.9% | September 2027 | 22,467 | 4.1% | September 2027 | ||||||||||
Box, Inc. | 22,441 | 4.1% | Various (6) | |||||||||||||
Synopsys, Inc. | 15,364 | 3.3% | August 2030 | 15,492 | 2.8% | August 2030 | ||||||||||
Bridgepoint Education, Inc. | 15,066 | 3.2% | Various (5) | 15,066 | 2.7% | Various (7) | ||||||||||
Intuit, Inc. | 13,489 | 2.9% | August 2017 | |||||||||||||
Dropbox, Inc. | 14,827 | 2.7% | August 2027 | |||||||||||||
Delta Dental of California | 10,718 | 2.3% | Various (6) | 10,313 | 1.9% | May 2018 | ||||||||||
AMN Healthcare, Inc. | 9,001 | 1.9% | July 2027 | 9,001 | 1.6% | July 2027 | ||||||||||
Scan Group (2)(3) | 6,969 | 1.5% | Various (7) | |||||||||||||
Concur Technologies | 6,564 | 1.4% | December 2025 | 8,852 | 1.6% | December 2025 | ||||||||||
Biotech/Healthcare Industry Tenant | 8,461 | 1.5% | September 2029 | |||||||||||||
Riot Games, Inc. | 6,817 | 1.2% | Various (8) | |||||||||||||
Zenefits Insurance Service | 6,756 | 1.2% | Various (9) | |||||||||||||
Adobe Systems, Inc. | 6,596 | 1.2% | Various (10) | |||||||||||||
Group Health Cooperative | 6,372 | 1.4% | September 2017 | 6,372 | 1.2% | September 2017 | ||||||||||
Neurocrine Biosciences, Inc. | 6,366 | 1.4% | December 2019 | |||||||||||||
Microsoft Corporation | 6,250 | 1.3% | Various (8) | |||||||||||||
Institute for Systems Biology | 6,207 | 1.3% | March 2021 | |||||||||||||
Fish & Richardson, P.C. | 6,071 | 1.3% | October 2018 | |||||||||||||
Pac-12 Enterprises, LLC | 5,603 | 1.2% | Various (9) | |||||||||||||
Total | $ | 165,348 | 35.3% | $ | 205,988 | 37.3% |
(1) | Annualized base rental revenue includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes the impact of the following: amortization of deferred revenue related tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue. Excludes month-to-month leases and vacant space as of December 31, |
(2) | Includes 100% of the annualized base rental revenues of consolidated property partnerships. |
(3) | The Company has entered into leases with various affiliates of the |
(4) | The LinkedIn Corporation leases, which contribute $2.2 million and $26.1 million, expire in July 2019 and September 2026, respectively. |
(5) | The salesforce.com, inc leases, which contribute $0.4 million, $0.4 million, and $23.4 million, expire in August 2017, August 2018 and September 2032, respectively. |
(6) | The Box, Inc. leases, which contribute $2.1 million and $20.4 million, expire in August 2021 and June 2028, respectively. |
(7) | The Bridgepoint Education Inc. leases, which contribute $1.0 million, $6.3 million and $7.8 million, expire in February 2017, July 2018 and September 2018, respectively. |
The |
(9) | The |
(10) | The Adobe Systems, Inc. leases, which contribute $4.4 million and $2.2 million, expire in July 2020 and May 2021, respectively. |
Year of Lease Expiration | # of Expiring Leases | Total Square Feet | % of Total Leased Square Feet | Annualized Base Rent (000’s)(1) | % of Total Annualized Base Rent(1) | Annualized Rent per Square Foot (1) | # of Expiring Leases | Total Square Feet | % of Total Leased Square Feet | Annualized Base Rent (000’s)(1) (2) | % of Total Annualized Base Rent(1) | Annualized Rent per Square Foot (1) | ||||||||||||||||||||||||||
2015 | 109 | 1,124,952 | 8.7 | % | $ | 34,948 | 7.5 | % | $ | 31.07 | ||||||||||||||||||||||||||||
2016 | 81 | 780,353 | 6.0 | % | 23,460 | 5.0 | % | 30.06 | ||||||||||||||||||||||||||||||
2017 | 107 | 1,812,670 | 14.0 | % | 60,573 | 12.8 | % | 33.42 | 107 | 1,077,323 | 8.2 | % | $ | 40,929 | 7.4 | % | $ | 37.99 | ||||||||||||||||||||
2018 | 66 | 1,350,180 | 10.4 | % | 54,136 | 11.5 | % | 40.10 | 82 | 1,392,576 | 10.4 | % | 55,896 | 10.2 | % | 40.14 | ||||||||||||||||||||||
2019 | 80 | 1,486,088 | 11.4 | % | 54,028 | 11.5 | % | 36.36 | 103 | 1,680,867 | 12.7 | % | 60,869 | 11.1 | % | 36.21 | ||||||||||||||||||||||
2020 | 68 | 1,789,865 | 13.8 | % | 64,617 | 13.8 | % | 36.10 | 104 | 2,041,185 | 15.5 | % | 78,506 | 14.3 | % | 38.46 | ||||||||||||||||||||||
2021 | 21 | 617,215 | 4.8 | % | 28,770 | 6.1 | % | 46.61 | 85 | 1,103,693 | 8.4 | % | 46,873 | 8.5 | % | 42.47 | ||||||||||||||||||||||
2022 | 17 | 638,163 | 4.9 | % | 19,682 | 4.2 | % | 30.84 | 43 | 594,164 | 4.5 | % | 25,055 | 4.5 | % | 42.17 | ||||||||||||||||||||||
2023 | 12 | 387,270 | 3.0 | % | 16,835 | 3.6 | % | 43.47 | 30 | 713,976 | 5.4 | % | 33,851 | 6.1 | % | 47.41 | ||||||||||||||||||||||
2024 | 16 | 521,693 | 4.0 | % | 15,716 | 3.3 | % | 30.12 | 25 | 711,568 | 5.4 | % | 28,854 | 5.2 | % | 40.55 | ||||||||||||||||||||||
2025 and beyond | 21 | 2,468,520 | 19.0 | % | 97,159 | 20.7 | % | 39.36 | ||||||||||||||||||||||||||||||
2025 | 8 | 101,642 | 0.8 | % | 4,688 | 0.9 | % | 46.12 | ||||||||||||||||||||||||||||||
2026 | 19 | 1,309,958 | 9.9 | % | 50,320 | 9.2 | % | 38.41 | ||||||||||||||||||||||||||||||
2027 and beyond | 22 | 2,477,604 | 18.8 | % | 124,053 | 22.6 | % | 50.07 | ||||||||||||||||||||||||||||||
Total | 598 | 12,976,969 | 100.0 | % | $ | 469,924 | 100.0 | % | $ | 36.21 | 628 | 13,204,556 | 100.0 | % | $ | 549,894 | 100.0 | % | $ | 41.64 |
(1) | Annualized base rent includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes the impact of the following: amortization of deferred revenue related tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases and expense reimbursement revenue. Additionally, the underlying leases contain various expense structures including full service gross, modified gross and triple net. Amounts represent percentage of total portfolio annualized contractual base rental revenue. |
(2) | Includes 100% of consolidated property partnerships. |
(3) |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | MARKET FOR KILROY REALTY CORPORATION’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
2014 | High | Low | Close | Per Share Common Stock Dividends Declared | ||||||||||||||||||||||||||
2016 | High | Low | Close | Per Share Common Stock Dividends Declared | ||||||||||||||||||||||||||
First quarter | $ | 62.94 | $ | 47.38 | $ | 61.87 | $ | 0.3500 | ||||||||||||||||||||||
Second quarter | 66.29 | 59.89 | 66.29 | 0.3750 | ||||||||||||||||||||||||||
Third quarter | 73.73 | 66.06 | 69.35 | 0.3750 | ||||||||||||||||||||||||||
Fourth quarter (1) | 76.88 | 66.73 | 73.22 | 2.2750 | ||||||||||||||||||||||||||
2015 | High | Low | Close | Per Share Common Stock Dividends Declared | ||||||||||||||||||||||||||
First quarter | $ | 59.53 | $ | 49.72 | $ | 58.58 | $ | 0.3500 | $ | 78.86 | $ | 70.48 | $ | 76.17 | $ | 0.3500 | ||||||||||||||
Second quarter | 62.88 | 57.29 | 62.28 | 0.3500 | 77.92 | 67.15 | 67.15 | 0.3500 | ||||||||||||||||||||||
Third quarter | 63.96 | 58.03 | 59.44 | 0.3500 | 73.45 | 63.41 | 65.16 | 0.3500 | ||||||||||||||||||||||
Fourth quarter | 71.47 | 58.73 | 69.07 | 0.3500 | 69.92 | 62.83 | 63.28 | 0.3500 | ||||||||||||||||||||||
2013 | High | Low | Close | Per Share Common Stock Dividends Declared | ||||||||||||||||||||||||||
First quarter | $ | 53.99 | $ | 47.86 | $ | 52.40 | $ | 0.3500 | ||||||||||||||||||||||
Second quarter | 59.58 | 50.11 | 53.01 | 0.3500 | ||||||||||||||||||||||||||
Third quarter | 55.80 | 47.73 | 49.95 | 0.3500 | ||||||||||||||||||||||||||
Fourth quarter | 54.04 | 48.89 | 50.18 | 0.3500 |
(1) | Includes a special cash dividend of $1.90 per share of common stock that was paid on January 13, 2017. |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) that May Yet to be Purchased Under the Plans or Programs | |||||||||
October 1 - October 31, 2014 | — | $ | — | — | — | ||||||||
November 1 - November 30, 2014 (1) | 404,136 | $ | 42.81 | — | — | ||||||||
December 1 - December 31, 2014 | — | $ | — | — | — | ||||||||
Total | 404,136 | $ | 42.81 | — | — |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Units) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) that May Yet be Purchased Under the Plans or Programs | |||||||||
October 1 - October 31, 2016 | — | $ | — | — | — | ||||||||
November 1 - November 30, 2016 | — | $ | — | — | — | ||||||||
December 1 - December 31, 2016 | (19,264 | ) | (1) | $ | 75.54 | — | — | ||||||
Total | (19,264 | ) | $ | 75.54 | — | — |
(1) |
2014 | Per Unit Common Unit Distribution Declared | |||||||
2016 | Per Unit Common Unit Distribution Declared | |||||||
First quarter | $ | 0.3500 | ||||||
Second quarter | 0.3750 | |||||||
Third quarter | 0.3750 | |||||||
Fourth quarter (1) | 2.2750 | |||||||
2015 | Per Unit Common Unit Distribution Declared | |||||||
First quarter | $ | 0.3500 | $ | 0.3500 | ||||
Second quarter | 0.3500 | 0.3500 | ||||||
Third quarter | 0.3500 | 0.3500 | ||||||
Fourth quarter | 0.3500 | 0.3500 | ||||||
2013 | Per Unit Common Unit Distribution Declared | |||||||
First quarter | $ | 0.3500 | ||||||
Second quarter | 0.3500 | |||||||
Third quarter | 0.3500 | |||||||
Fourth quarter | 0.3500 |
(1) | Includes a special cash distribution of $1.90 per common unit that was paid on January 13, 2017. |
ITEM 6. | SELECTED FINANCIAL DATA – KILROY REALTY CORPORATION |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Statements of Operations Data: | ||||||||||||||||||||||||||||||||||||||
Total revenues from continuing operations | $ | 521,725 | $ | 457,111 | $ | 373,318 | $ | 304,574 | $ | 230,078 | $ | 642,572 | $ | 581,275 | $ | 521,725 | $ | 457,111 | $ | 373,318 | ||||||||||||||||||
Income (loss) from continuing operations | 59,313 | 14,935 | (5,475 | ) | (16,664 | ) | (7,369 | ) | 303,798 | 238,604 | 59,313 | 14,935 | (5,475 | ) | ||||||||||||||||||||||||
Income from discontinued operations | 124,495 | 29,630 | 282,576 | 84,153 | 27,255 | — | — | 124,495 | 29,630 | 282,576 | ||||||||||||||||||||||||||||
Net income available to common stockholders | 166,969 | 30,630 | 249,826 | 50,819 | 4,512 | 280,538 | 220,831 | 166,969 | 30,630 | 249,826 | ||||||||||||||||||||||||||||
Per-Share Data: | ||||||||||||||||||||||||||||||||||||||
Weighted average shares of common stock outstanding – basic | 83,090,235 | 77,343,853 | 69,639,623 | 56,717,121 | 49,497,487 | 92,342,483 | 89,854,096 | 83,090,235 | 77,343,853 | 69,639,623 | ||||||||||||||||||||||||||||
Weighted average shares of common stock outstanding – diluted | 84,967,720 | 77,343,853 | 69,639,623 | 56,717,121 | 49,497,487 | 93,023,034 | 90,395,775 | 84,967,720 | 77,343,853 | 69,639,623 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations available to common stockholders per share of common stock – basic | $ | 0.52 | $ | 0.00 | $ | (0.40 | ) | $ | (0.57 | ) | $ | (0.46 | ) | $ | 3.00 | $ | 2.44 | $ | 0.52 | $ | 0.00 | $ | (0.40 | ) | ||||||||||||||
Income (loss) from continuing operations available to common stockholders per share of common stock – diluted | $ | 0.51 | $ | 0.00 | $ | (0.40 | ) | $ | (0.57 | ) | $ | (0.46 | ) | $ | 2.97 | $ | 2.42 | $ | 0.51 | $ | 0.00 | $ | (0.40 | ) | ||||||||||||||
Net income available to common stockholders per share – basic | $ | 1.99 | $ | 0.37 | $ | 3.56 | $ | 0.87 | $ | 0.07 | $ | 3.00 | $ | 2.44 | $ | 1.99 | $ | 0.37 | $ | 3.56 | ||||||||||||||||||
Net income available to common stockholders per share – diluted | $ | 1.95 | $ | 0.37 | $ | 3.56 | $ | 0.87 | $ | 0.07 | $ | 2.97 | $ | 2.42 | $ | 1.95 | $ | 0.37 | $ | 3.56 | ||||||||||||||||||
Dividends declared per common share | $ | 1.40 | $ | 1.40 | $ | 1.40 | $ | 1.40 | $ | 1.40 | ||||||||||||||||||||||||||||
Dividends declared per share (2) | $ | 3.375 | $ | 1.400 | $ | 1.400 | $ | 1.400 | $ | 1.400 |
(1) | The Company adopted FASB ASU No. 2014-08 effective January 1, 2015 (see Note 2 “Basis of Presentation and Significant Accounting Policies” to our consolidated financial statements included in this report for additional information). As a result, results of operations for properties classified as held for sale and/or disposed of subsequent to January 1, 2015 are presented in continuing operations. Prior to January 1, 2015, properties classified as held for sale and/or disposed of are presented in discontinued operations. |
(2) | The year ended December 31, 2016 includes a special dividend of $1.90 per share of common stock that was paid on January 13, 2017. |
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||||||||||||||||||||
Total real estate held for investment, before accumulated depreciation and amortization | $ | 6,057,932 | $ | 5,264,947 | $ | 4,757,394 | $ | 3,798,690 | $ | 3,216,871 | $ | 7,060,754 | $ | 6,328,146 | $ | 6,057,932 | $ | 5,264,947 | $ | 4,757,394 | ||||||||||||||||||
Total assets | 5,633,736 | 5,111,028 | 4,616,084 | 3,446,795 | 2,816,565 | 6,706,633 | 5,926,430 | 5,621,262 | 5,099,417 | 4,603,488 | ||||||||||||||||||||||||||||
Total debt | 2,469,413 | 2,204,938 | 2,040,935 | 1,821,286 | 1,427,776 | 2,320,123 | 2,225,469 | 2,456,939 | 2,193,327 | 2,028,339 | ||||||||||||||||||||||||||||
Total noncontrolling interest – preferred units (1) | — | — | — | 73,638 | 73,638 | |||||||||||||||||||||||||||||||||
Total preferred stock | 192,411 | 192,411 | 192,411 | 121,582 | 121,582 | 192,411 | 192,411 | 192,411 | 192,411 | 192,411 | ||||||||||||||||||||||||||||
Total noncontrolling interests (2) | 216,322 | 63,620 | 57,726 | 54,848 | 46,303 | |||||||||||||||||||||||||||||||||
Total equity (2) | 2,723,936 | 2,516,160 | 2,235,933 | 1,327,482 | 1,117,730 | 3,759,317 | 3,234,586 | 2,723,936 | 2,516,160 | 2,235,933 | ||||||||||||||||||||||||||||
Other Data: | ||||||||||||||||||||||||||||||||||||||
Funds From Operations (3) (4) | $ | 250,744 | $ | 218,621 | $ | 165,455 | $ | 136,173 | $ | 106,639 | $ | 333,742 | $ | 316,612 | $ | 250,744 | $ | 218,621 | $ | 165,455 | ||||||||||||||||||
Cash flows provided by (used in): | ||||||||||||||||||||||||||||||||||||||
Operating activities | $ | 245,253 | $ | 240,576 | $ | 180,724 | $ | 138,256 | $ | 119,827 | $ | 345,054 | $ | 272,008 | $ | 245,253 | $ | 240,576 | $ | 180,724 | ||||||||||||||||||
Investing activities | (501,436 | ) | (506,520 | ) | (706,506 | ) | (634,283 | ) | (701,774 | ) | (635,435 | ) | (262,752 | ) | (501,436 | ) | (506,520 | ) | (706,506 | ) | ||||||||||||||||||
Financing activities | 244,587 | 284,621 | 537,705 | 485,964 | 586,904 | 427,291 | 23,471 | 244,587 | 284,621 | 537,705 | ||||||||||||||||||||||||||||
Office Property Data: (5) | ||||||||||||||||||||||||||||||||||||||
Rentable square footage | 14,096,617 | 12,736,099 | 13,249,780 | 11,421,112 | 10,395,208 | 14,025,856 | 13,032,406 | 14,096,617 | 12,736,099 | 13,249,780 | ||||||||||||||||||||||||||||
Occupancy | 94.4 | % | 93.4 | % | 92.8 | % | 90.1 | % | 87.5 | % | 96.0 | % | 94.8 | % | 94.4 | % | 93.4 | % | 92.8 | % | ||||||||||||||||||
Residential Property Data: (5) | ||||||||||||||||||||||||||||||||||||||
Number of units | 200 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
Occupancy | 46.0 | % | N/A | N/A | N/A | N/A |
(1) |
(2) | Includes the noncontrolling |
(3) | We calculate FFO in accordance with the White Paper on FFO approved by the Board of Governors of NAREIT. The White Paper defines FFO as net income or loss calculated in accordance with GAAP, excluding extraordinary items, as defined by GAAP, gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets) |
(4) | FFO includes amortization of deferred revenue related to tenant-funded tenant improvements of $13.2 million, $13.3 million, $11.0 million, $10.7 million |
(5) | Occupancy percentages and total square feet reported are based on the |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Statements of Operations Data: | ||||||||||||||||||||||||||||||||||||||
Total revenues from continuing operations | $ | 521,725 | $ | 457,111 | $ | 373,318 | $ | 304,574 | $ | 230,078 | $ | 642,572 | $ | 581,275 | $ | 521,725 | $ | 457,111 | $ | 373,318 | ||||||||||||||||||
Income (loss) from continuing operations | 59,313 | 14,935 | (5,475 | ) | (16,664 | ) | (7,369 | ) | 303,798 | 238,604 | 59,313 | 14,935 | (5,475 | ) | ||||||||||||||||||||||||
Income from discontinued operations | 124,495 | 29,630 | 282,576 | 84,153 | 27,255 | — | — | 124,495 | 29,630 | 282,576 | ||||||||||||||||||||||||||||
Net income available to common unitholders | 170,298 | 31,091 | 255,375 | 51,764 | 4,528 | 286,813 | 224,887 | 170,298 | 31,091 | 255,375 | ||||||||||||||||||||||||||||
Per Unit Data: | ||||||||||||||||||||||||||||||||||||||
Weighted average common units outstanding – basic | 84,894,498 | 79,166,260 | 71,403,258 | 58,437,444 | 51,220,618 | 94,771,688 | 91,645,578 | 84,894,498 | 79,166,260 | 71,403,258 | ||||||||||||||||||||||||||||
Weighted average common units outstanding – diluted | 86,771,983 | 79,166,260 | 71,403,258 | 58,437,444 | 51,220,618 | 95,452,239 | 92,187,257 | 86,771,983 | 79,166,260 | 71,403,258 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations available to common unitholders per common unit – basic | $ | 0.52 | $ | 0.00 | $ | (0.40 | ) | $ | (0.58 | ) | $ | (0.47 | ) | $ | 2.99 | $ | 2.44 | $ | 0.52 | $ | 0.00 | $ | (0.40 | ) | ||||||||||||||
Income (loss) from continuing operations available to common unitholders per common unit – diluted | $ | 0.51 | $ | 0.00 | $ | (0.40 | ) | $ | (0.58 | ) | $ | (0.47 | ) | $ | 2.96 | $ | 2.42 | $ | 0.51 | $ | 0.00 | $ | (0.40 | ) | ||||||||||||||
Net income available to common unitholders per unit – basic | $ | 1.99 | $ | 0.37 | $ | 3.56 | $ | 0.86 | $ | 0.07 | $ | 2.99 | $ | 2.44 | $ | 1.99 | $ | 0.37 | $ | 3.56 | ||||||||||||||||||
Net income available to common unitholders per unit – diluted | $ | 1.94 | $ | 0.37 | $ | 3.56 | $ | 0.86 | $ | 0.07 | $ | 2.96 | $ | 2.42 | $ | 1.94 | $ | 0.37 | $ | 3.56 | ||||||||||||||||||
Distributions declared per common unit | $ | 1.40 | $ | 1.40 | $ | 1.40 | $ | 1.40 | $ | 1.40 | $ | 3.375 | $ | 1.400 | $ | 1.400 | $ | 1.400 | $ | 1.400 |
(1) | The Company adopted FASB ASU No. 2014-08 effective January 1, 2015 (see Note 2 “Basis of Presentation and Significant Accounting Policies” to our consolidated financial statements included in this report for additional information). As a result, results of operations for properties classified as held for sale and/or disposed of subsequent to January 1, 2015 are presented in continuing operations. Prior to January 1, 2015, properties classified as held for sale and/or disposed of are presented in discontinued operations. |
(2) | The year ended December 31, 2016 includes a special distribution of $1.90 per common unit that was paid on January 13, 2017. |
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||||||||||||||||||||
Total real estate held for investment, before accumulated depreciation and amortization | $ | 6,057,932 | $ | 5,264,947 | $ | 4,757,394 | $ | 3,798,690 | $ | 3,216,871 | $ | 7,060,754 | $ | 6,328,146 | $ | 6,057,932 | $ | 5,264,947 | $ | 4,757,394 | ||||||||||||||||||
Total assets | 5,633,736 | 5,111,028 | 4,616,084 | 3,446,795 | 2,816,565 | 6,706,633 | 5,926,430 | 5,621,262 | 5,099,417 | 4,603,488 | ||||||||||||||||||||||||||||
Total debt | 2,469,413 | 2,204,938 | 2,040,935 | 1,821,286 | 1,427,776 | 2,320,123 | 2,225,469 | 2,456,939 | 2,193,327 | 2,028,339 | ||||||||||||||||||||||||||||
Series A redeemable preferred units (1) | — | — | — | 73,638 | 73,638 | |||||||||||||||||||||||||||||||||
Total preferred capital | 192,411 | 192,411 | 192,411 | 121,582 | 121,582 | 192,411 | 192,411 | 192,411 | 192,411 | 192,411 | ||||||||||||||||||||||||||||
Total noncontrolling interests (2) | 135,138 | 10,566 | 9,625 | 8,388 | 3,279 | |||||||||||||||||||||||||||||||||
Total capital (2) | 2,723,936 | 2,516,160 | 2,235,933 | 1,327,482 | 1,117,730 | 3,759,317 | 3,234,586 | 2,723,936 | 2,516,160 | 2,235,933 | ||||||||||||||||||||||||||||
Other Data: | ||||||||||||||||||||||||||||||||||||||
Cash flows provided by (used in): | ||||||||||||||||||||||||||||||||||||||
Operating activities | 245,253 | 240,576 | 180,724 | 138,256 | 119,827 | 345,054 | 272,008 | 245,253 | 240,576 | 180,724 | ||||||||||||||||||||||||||||
Investing activities | (501,436 | ) | (506,520 | ) | (706,506 | ) | (634,283 | ) | (701,774 | ) | (635,435 | ) | (262,752 | ) | (501,436 | ) | (506,520 | ) | (706,506 | ) | ||||||||||||||||||
Financing activities | 244,587 | 284,621 | 537,705 | 485,964 | 586,904 | 427,291 | 23,471 | 244,587 | 284,621 | 537,705 | ||||||||||||||||||||||||||||
Office Property Data: (3) | ||||||||||||||||||||||||||||||||||||||
Rentable square footage | 14,096,617 | 12,736,099 | 13,249,780 | 11,421,112 | 10,395,208 | 14,025,856 | 13,032,406 | 14,096,617 | 12,736,099 | 13,249,780 | ||||||||||||||||||||||||||||
Occupancy | 94.4 | % | 93.4 | % | 92.8 | % | 90.1 | % | 87.5 | % | 96.0 | % | 94.8 | % | 94.4 | % | 93.4 | % | 92.8 | % | ||||||||||||||||||
Residential Property Data: (3) | ||||||||||||||||||||||||||||||||||||||
Number of units | 200 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
Occupancy | 46.0 | % | N/A | N/A | N/A | N/A |
(1) |
(2) | Includes the noncontrolling interests in consolidated property partnerships and subsidiaries (see Note 2 “Basis of Presentation and |
(3) | Occupancy percentages and total square feet reported are based on the |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Near-Term Development Pipeline (1) | Location | Potential Start Date (2) | Approx. Developable Square Feet | Total Estimated Investment | Total Costs as of 12/31/2016 (3) (in millions) | |||||||||
333 Dexter (4) | South Lake Union | 2017 | 700,000 | $ | 385 | $ | 73.5 | |||||||
Academy Project | Hollywood | 2017 | 545,000 | 390 | 73.5 | |||||||||
One Paseo - Phases II and III (5) | Del Mar | TBD | 640,000 | 440 | 127.1 | |||||||||
Total Near-Term Development Pipeline | 1,885,000 | $ | 1,215 | $ | 274.1 |
(1) | Project timing, costs, developable square feet and scope could change materially from estimated data provided due to one of more of the following: any significant changes in the economy, market conditions, our markets, tenant requirements and demands, construction costs, new office supply, regulatory and entitlement processes, and project design. |
(2) | Potential start dates assume successfully obtaining all entitlements and approvals necessary to commence construction. Actual commencement is subject to extensive consideration of market conditions and economic factors. |
(3) | Represents cash paid and costs incurred as of December 31, 2016. |
(4) | Consists of four adjacent parcels in the South Lake Union submarket of Seattle. |
(5) | In July 2016, the Company received final entitlement approval for this project. Development for this project will occur in phases. Phase I includes the project's overall infrastructure and site work, 237 residential units and approximately 96,000 square feet of retail space. Phases II and III, comprised of office and residential, will commence subject to market conditions and economic factors. |
1st & 2nd Generation (1) | 2nd Generation (1) | |||||||||||||||||||||||||
Number of Leases (2) | Rentable Square Feet (2) | TI/LC per Sq. Ft. (3) | Changes in Rents (4)(5) | Changes in Cash Rents (6) | Retention Rates (7) | Weighted Average Lease Term (in months) | ||||||||||||||||||||
New | Renewal | New | Renewal | |||||||||||||||||||||||
Year Ended December 31, 2014 | 106 | 81 | 1,045,717 | 1,333,231 | 33.43 | 19.7 | % | 9.4 | % | 58.6 | % | 69 |
1st & 2nd Generation (1) | 2nd Generation (1) | ||||||||||||||||||||||||||
Number of Leases (2) | Rentable Square Feet (2) | TI/LC per Sq. Ft. (3) | Changes in Rents (4)(5) | Changes in Cash Rents (6) | Retention Rates (7) | Weighted Average Lease Term (in months) | |||||||||||||||||||||
New | Renewal | New | Renewal | ||||||||||||||||||||||||
Year Ended December 31, 2016 | 86 | 63 | 585,637 | 476,011 | $ | 38.78 | 24.4 | % | 11.9 | % | 47.9 | % | 66 |
1st & 2nd Generation (1) | 2nd Generation (1) | ||||||||||||||||||||||
Number of Leases (2) | Rentable Square Feet (2) | TI/LC per Sq. Ft. (3) | Changes in Rents (4)(5) | Changes in Cash Rents (6) | Weighted Average Lease Term (in months) | ||||||||||||||||||
New | Renewal | New | Renewal | ||||||||||||||||||||
Year Ended December 31, 2014 | 108 | 81 | 1,014,888 | 1,333,231 | 37.14 | 25.4 | % | 13.0 | % | 74 |
1st & 2nd Generation (1) | 2nd Generation (1) | |||||||||||||||||||||||
Number of Leases (2) | Rentable Square Feet (2) | TI/LC per Sq. Ft. (3) | Changes in Rents (4)(5) | Changes in Cash Rents (6) | Weighted Average Lease Term (in months) | |||||||||||||||||||
New | Renewal | New | Renewal | |||||||||||||||||||||
Year Ended December 31, 2016 | 81 | 63 | 799,255 | 476,011 | $ | 50.60 | 30.2 | % | 13.4 | % | 80 |
(1) | First generation leasing includes space where we have made capital expenditures that result in additional revenue generated when the space is re-leased. Second generation leasing includes space where we have made capital expenditures to maintain the current market revenue stream. |
(2) | Represents leasing activity for leases that commenced or signed during the period, including first and second generation space, net of month-to-month leases. Excludes leasing on new construction. |
(3) | Amounts exclude tenant-funded tenant improvements. |
(4) | Calculated as the change between GAAP rents for new/renewed leases and the expiring GAAP rents for the same space. Excludes leases for which the space was vacant longer than one year or vacant when the property was acquired. |
(5) | Excludes commenced and executed leases of approximately |
(6) | Calculated as the change between stated cash rents for new/renewed leases and the expiring stated rents for the same space. Excludes leases for which the space was vacant longer than one year or vacant when the property was acquired. |
(7) | Calculated as the percentage of space either renewed or expanded into by existing tenants or subtenants at lease expiration. |
(8) | For the year ended December 31, |
Year of Lease Expiration | Number of Expiring Leases | Total Square Feet | % of Total Leased Sq. Ft. | Annualized Base Rent (2) | % of Total Annualized Base Rent (2) | Annualized Base Rent per Sq. Ft. (2) | Number of Expiring Leases | Total Square Feet | % of Total Leased Sq. Ft. | Annualized Base Rent (2) | % of Total Annualized Base Rent (2) | Annualized Base Rent per Sq. Ft. (2) | ||||||||||||||||||||||||||||
2015 | 109 | 1,124,952 | 8.7 | % | $ | 34,948 | 7.5 | % | $ | 31.07 | ||||||||||||||||||||||||||||||
2016 | 81 | 780,353 | 6.0 | % | 23,460 | 5.0 | % | 30.06 | ||||||||||||||||||||||||||||||||
2017 | 107 | 1,812,670 | 14.0 | % | 60,573 | 12.8 | % | 33.42 | 107 | 1,077,323 | 8.2 | % | $ | 40,929 | 7.4 | % | $ | 37.99 | ||||||||||||||||||||||
2018 | 66 | 1,350,180 | 10.4 | % | 54,136 | 11.5 | % | 40.10 | 82 | 1,392,576 | 10.4 | % | 55,896 | 10.2 | % | 40.14 | ||||||||||||||||||||||||
2019 | 80 | 1,486,088 | 11.4 | % | 54,028 | 11.5 | % | 36.36 | 103 | 1,680,867 | 12.7 | % | 60,869 | 11.1 | % | 36.21 | ||||||||||||||||||||||||
2020 | 104 | 2,041,185 | 15.5 | % | 78,506 | 14.3 | % | 38.46 | ||||||||||||||||||||||||||||||||
2021 | 85 | 1,103,693 | 8.4 | % | 46,873 | 8.5 | % | 42.47 | ||||||||||||||||||||||||||||||||
Total | 443 | 6,554,243 | 50.5 | % | $ | 227,145 | 48.3 | % | $ | 34.66 | 481 | 7,295,644 | 55.2 | % | $ | 283,073 | 51.5 | % | $ | 38.80 |
(1) | For leases that have been renewed early |
(2) | Annualized base rent includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes the impact of the following: amortization of deferred revenue related tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue. Additionally, the underlying leases contain various expense structures including full service gross, modified gross and triple net. Percentages represent percentage of total portfolio annualized contractual base rental revenue. For additional information on tenant improvement and leasing commission costs incurred by the Company for the current reporting period, please see further discussion under the caption “Information on Leases Commenced and Executed.” |
Number of Properties/Projects | Estimated Office Rentable Square Feet | |||
Properties held for sale (1) | 1 | 67,995 | ||
Development project in “lease-up” (2) | 1 | 377,000 | ||
Development projects under construction (2) (3) | 3 | 1,100,000 |
(1) | See Note 4 “Dispositions and Real Estate Assets Held for Sale” to our consolidated financial statements included in this report for additional information. |
(2) | Estimated rentable square feet upon completion. |
(3) | Development projects under construction also include 96,000 square feet of retail space and 237 residential units in addition to the estimated office rentable square feet noted above. |
Number of Buildings | Rentable Square Feet | ||||
Total as of December 31, 2013 (1) | 105 | 12,736,102 | |||
Acquisitions (2) | 5 | 407,587 | |||
Completed development and redevelopment properties placed in-service | 6 | 1,356,053 | |||
Dispositions (1) | (5 | ) | (422,284 | ) | |
Remeasurement | — | 19,159 | |||
Total as of December 31, 2014 | 111 | 14,096,617 |
Number of Buildings | Rentable Square Feet | ||||
Total as of December 31, 2015 | 101 | 13,032,406 | |||
Acquisitions (1) | 7 | 458,459 | |||
Completed development properties placed in-service | 3 | 713,974 | |||
Dispositions and properties held for sale at December 31, 2016 (2) | (3 | ) | (204,903 | ) | |
Remeasurement | — | 25,920 | |||
Total as of December 31, 2016 (3) | 108 | 14,025,856 |
(1) | Excludes |
(2) | Excludes dispositions of properties held for sale as of December 31, |
Region | Number of Buildings | Rentable Square Feet | Occupancy at (1) | Number of Buildings | Rentable Square Feet | Occupancy at (1) | ||||||||||||||||||||||
12/31/2014 | 12/31/2013 | 12/31/2012 | 12/31/2016 | 12/31/2015 | 12/31/2014 | |||||||||||||||||||||||
Los Angeles and Ventura Counties | 27 | 3,505,590 | 92.8 | % | 93.7 | % | 94.0 | % | 33 | 3,812,097 | 95.0 | % | 95.1 | % | 92.8 | % | ||||||||||||
Orange County | 1 | 271,556 | 98.7 | % | 92.8 | % | 92.0 | % | 1 | 271,556 | 97.8 | % | 94.0 | % | 98.7 | % | ||||||||||||
San Diego County | 46 | 4,244,068 | 90.9 | % | 90.8 | % | 90.7 | % | 31 | 2,718,541 | 93.2 | % | 89.6 | % | 90.9 | % | ||||||||||||
San Francisco Bay Area | 24 | 3,887,161 | 97.3 | % | 94.8 | % | 95.5 | % | 31 | 5,157,524 | 97.6 | % | 98.1 | % | 97.3 | % | ||||||||||||
Greater Seattle | 13 | 2,188,242 | 98.1 | % | 96.7 | % | 93.3 | % | 12 | 2,066,138 | 97.2 | % | 95.1 | % | 98.1 | % | ||||||||||||
Total Stabilized Portfolio | 111 | 14,096,617 | 94.4 | % | 93.4 | % | 92.8 | % | 108 | 14,025,856 | 96.0 | % | 94.8 | % | 94.4 | % |
Average Occupancy | Average Occupancy | |||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||
2014 | 2013 | 2016 | 2015 | |||||||
Stabilized Portfolio (1) | 93.5 | % | 92.1 | % | 95.5 | % | 95.6 | % | ||
Same Store Portfolio (2) | 92.7 | % | 91.4 | % | 95.9 | % | 95.8 | % |
(1) | Occupancy percentages reported are based on our stabilized office portfolio as of the end of the period presented. |
(2) | Occupancy percentages reported are based on office properties owned and stabilized as of January 1, |
◦ | One office development project that was added to the stabilized portfolio in the fourth quarter of 2016; |
◦ | Two office development projects that were completed and stabilized in March 2016; and |
◦ | Two office development projects comprising four office buildings that were completed and stabilized in the fourth quarter of 2015; |
Group | # of Buildings | Rentable Square Feet | # of Buildings | Rentable Square Feet | ||||||||
Same Store Properties | 93 | 11,309,444 | 94 | 12,388,876 | ||||||||
Stabilized Development Properties | 7 | 1,178,521 | ||||||||||
Acquisition Properties | 9 | 946,925 | 7 | 458,459 | ||||||||
Stabilized Development and Redevelopment Properties | 9 | 1,840,248 | ||||||||||
Total Stabilized Portfolio | 111 | 14,096,617 | 108 | 14,025,856 |
Year Ended December 31, | Dollar Change | Percentage Change | ||||||||||||
2014 | 2013 | |||||||||||||
($ in thousands) | ||||||||||||||
Reconciliation to Net Income: | ||||||||||||||
Net Operating Income, as defined | $ | 372,881 | $ | 319,679 | $ | 53,202 | 16.6 | % | ||||||
Unallocated (expense) income: | ||||||||||||||
General and administrative expenses | (46,152 | ) | (39,660 | ) | (6,492 | ) | 16.4 | |||||||
Acquisition-related expenses | (1,479 | ) | (1,962 | ) | 483 | (24.6 | ) | |||||||
Depreciation and amortization | (202,417 | ) | (188,887 | ) | (13,530 | ) | 7.2 | |||||||
Interest income and other net investment gains | 561 | 1,635 | (1,074 | ) | (65.7 | ) | ||||||||
Interest expense | (67,571 | ) | (75,870 | ) | 8,299 | (10.9 | ) | |||||||
Gain on sale of land | 3,490 | — | 3,490 | 100.0 | ||||||||||
Income from continuing operations | 59,313 | 14,935 | 44,378 | 297.1 | ||||||||||
Income from discontinued operations (1) | 124,495 | 29,630 | 94,865 | 320.2 | ||||||||||
Net income | $ | 183,808 | $ | 44,565 | $ | 139,243 | 312.4 | % | ||||||
Year Ended December 31, | Dollar Change | Percentage Change | ||||||||||||
2016 | 2015 | |||||||||||||
($ in thousands) | ||||||||||||||
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined: | ||||||||||||||
Net Income Available to Common Stockholders | $ | 280,538 | $ | 220,831 | $ | 59,707 | 27.0 | % | ||||||
Preferred dividends | 13,250 | 13,250 | — | — | ||||||||||
Net income attributable to Kilroy Realty Corporation | 293,788 | 234,081 | 59,707 | 25.5 | ||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 6,635 | 4,339 | 2,296 | 52.9 | ||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 3,375 | 184 | 3,191 | 1,734.2 | ||||||||||
Net income | $ | 303,798 | $ | 238,604 | $ | 65,194 | 27.3 | % | ||||||
Unallocated expense (income): | ||||||||||||||
General and administrative expenses | 57,029 | 48,265 | 8,764 | 18.2 | ||||||||||
Acquisition-related expenses | 1,902 | 497 | 1,405 | 282.7 | ||||||||||
Depreciation and amortization | 217,234 | 204,294 | 12,940 | 6.3 | ||||||||||
Interest income and other net investment (gains) losses | (1,764 | ) | (243 | ) | (1,521 | ) | 625.9 | |||||||
Interest expense | 55,803 | 57,682 | (1,879 | ) | (3.3 | ) | ||||||||
Net loss (gain) on sales of land | 295 | (17,116 | ) | 17,411 | (101.7 | ) | ||||||||
Gains on sales of depreciable operating properties | (164,302 | ) | (109,950 | ) | (54,352 | ) | 49.4 | |||||||
Net Operating Income, as defined | $ | 469,995 | $ | 422,033 | $ | 47,962 | 11.4 | % |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||||||||||||||||||
Same Store | Stabilized Develop-ment | Acquisitions | 2016 Held for Sale Disposi-tions & Other | Total | Same Store | Stabilized Develop-ment | Acquisitions | 2016 Held for Sale Disposi-tions & Other | Total | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||
Rental income | $ | 502,606 | $ | 59,779 | $ | 4,250 | $ | 7,778 | $ | 574,413 | $ | 486,905 | $ | 7,173 | $ | — | $ | 31,277 | $ | 525,355 | |||||||||||||||||||
Tenant reimbursements | 47,641 | 12,099 | 922 | 417 | 61,079 | 48,305 | 324 | — | 5,145 | 53,774 | |||||||||||||||||||||||||||||
Other property income | 1,915 | 22 | 53 | 5,090 | 7,080 | 1,958 | 3 | — | 185 | 2,146 | |||||||||||||||||||||||||||||
Total | 552,162 | 71,900 | 5,225 | 13,285 | 642,572 | 537,168 | 7,500 | — | 36,607 | 581,275 | |||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||
Property expenses | 98,649 | 7,413 | 477 | 7,393 | 113,932 | 100,045 | 617 | — | 4,716 | 105,378 | |||||||||||||||||||||||||||||
Real estate taxes | 44,591 | 7,534 | 446 | 2,635 | 55,206 | 45,500 | 642 | — | 4,081 | 50,223 | |||||||||||||||||||||||||||||
Provision for bad debts | (179 | ) | 116 | 51 | 12 | — | 598 | — | — | (53 | ) | 545 | |||||||||||||||||||||||||||
Ground leases | 3,356 | — | 83 | — | 3,439 | 3,096 | — | — | — | 3,096 | |||||||||||||||||||||||||||||
Total | 146,417 | 15,063 | 1,057 | 10,040 | 172,577 | 149,239 | 1,259 | — | 8,744 | 159,242 | |||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 405,745 | $ | 56,837 | $ | 4,168 | $ | 3,245 | $ | 469,995 | $ | 387,929 | $ | 6,241 | $ | — | $ | 27,863 | $ | 422,033 |
Year Ended December 31, 2016 as compared to the Year Ended December 31, 2015 | ||||||||||||||||||||||||||||||||||
Same Store | Stabilized Development | Acquisitions | 2016 Held for Sale, Dispositions & Other | Total | ||||||||||||||||||||||||||||||
Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | |||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||||
Rental income | $ | 15,701 | 3.2 | % | $ | 52,606 | 733.4 | % | $ | 4,250 | 100.0 | % | $ | (23,499 | ) | (75.1 | )% | $ | 49,058 | 9.3 | % | |||||||||||||
Tenant reimbursements | (664 | ) | (1.4 | ) | 11,775 | 3,634.3 | 922 | 100.0 | (4,728 | ) | (91.9 | ) | 7,305 | 13.6 | ||||||||||||||||||||
Other property income | (43 | ) | (2.2 | ) | 19 | 633.3 | 53 | 100.0 | 4,905 | 2,651.4 | 4,934 | 229.9 | ||||||||||||||||||||||
Total | 14,994 | 2.8 | 64,400 | 858.7 | 5,225 | 100.0 | (23,322 | ) | (63.7 | ) | 61,297 | 10.5 | ||||||||||||||||||||||
Property and related expenses: | ||||||||||||||||||||||||||||||||||
Property expenses | (1,396 | ) | (1.4 | ) | 6,796 | 1,101.5 | 477 | 100.0 | 2,677 | 56.8 | 8,554 | 8.1 | ||||||||||||||||||||||
Real estate taxes | (909 | ) | (2.0 | ) | 6,892 | 1,073.5 | 446 | 100.0 | (1,446 | ) | (35.4 | ) | 4,983 | 9.9 | ||||||||||||||||||||
Provision for bad debts | (777 | ) | (129.9 | ) | 116 | 100.0 | 51 | 100.0 | 65 | (122.6 | ) | (545 | ) | (100.0 | ) | |||||||||||||||||||
Ground leases | 260 | 8.4 | — | — | 83 | 100.0 | — | — | 343 | 11.1 | ||||||||||||||||||||||||
Total | (2,822 | ) | (1.9 | ) | 13,804 | 1,096.4 | 1,057 | 100.0 | 1,296 | 14.8 | 13,335 | 8.4 | ||||||||||||||||||||||
Net Operating Income, as defined | $ | 17,816 | 4.6 | % | $ | 50,596 | 810.7 | % | $ | 4,168 | 100.0 | % | $ | (24,618 | ) | (88.4 | )% | $ | 47,962 | 11.4 | % |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
Same Store | Acqui-sitions | Stabilized Development & Redevelopment | Other | Total | Same Store | Acqui-sitions | Stabilized Development & Redevelopment | Other | Total | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||
Rental income | $ | 386,456 | $ | 29,423 | $ | 49,617 | $ | 832 | $ | 466,328 | $ | 370,128 | $ | 14,810 | $ | 23,685 | $ | 3,276 | $ | 411,899 | |||||||||||||||||||
Tenant reimbursements | 38,264 | 5,182 | 3,151 | 120 | 46,717 | 33,704 | 2,981 | 937 | 425 | 38,047 | |||||||||||||||||||||||||||||
Other property income | 8,656 | — | 11 | 13 | 8,680 | 7,155 | 7 | 1 | 2 | 7,165 | |||||||||||||||||||||||||||||
Total | 433,376 | 34,605 | 52,779 | 965 | 521,725 | 410,987 | 17,798 | 24,623 | 3,703 | 457,111 | |||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||
Property expenses | 90,468 | 2,695 | 6,818 | 533 | 100,514 | 86,844 | 1,953 | 4,170 | 1,148 | 94,115 | |||||||||||||||||||||||||||||
Real estate taxes | 35,583 | 2,996 | 5,482 | 1,136 | 45,197 | 34,331 | 1,397 | 2,124 | 1,565 | 39,417 | |||||||||||||||||||||||||||||
Provision for bad debts | (181 | ) | 13 | 226 | — | 58 | 383 | 13 | — | — | 396 | ||||||||||||||||||||||||||||
Ground leases | 2,932 | — | 143 | — | 3,075 | 2,900 | — | 604 | — | 3,504 | |||||||||||||||||||||||||||||
Total | 128,802 | 5,704 | 12,669 | 1,669 | 148,844 | 124,458 | 3,363 | 6,898 | 2,713 | 137,432 | |||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 304,574 | $ | 28,901 | $ | 40,110 | $ | (704 | ) | $ | 372,881 | $ | 286,529 | $ | 14,435 | $ | 17,725 | $ | 990 | $ | 319,679 |
Year Ended December 31, 2014 as compared to the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||
Same Store | Acquisitions | Stabilized Development & Redevelopment | Other | Total | ||||||||||||||||||||||||||||||
Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | |||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||||
Rental income | $ | 16,328 | 4.4 | % | $ | 14,613 | 98.7 | % | $ | 25,932 | 109.5 | % | $ | (2,444 | ) | (74.6 | )% | $ | 54,429 | 13.2 | % | |||||||||||||
Tenant reimbursements | 4,560 | 13.5 | 2,201 | 73.8 | 2,214 | 236.3 | (305 | ) | (71.8 | ) | 8,670 | 22.8 | ||||||||||||||||||||||
Other property income | 1,501 | 21.0 | (7 | ) | (100.0 | ) | 10 | 1,000.0 | 11 | 550.0 | 1,515 | 21.1 | ||||||||||||||||||||||
Total | 22,389 | 5.4 | 16,807 | 94.4 | 28,156 | 114.3 | (2,738 | ) | (73.9 | ) | 64,614 | 14.1 | ||||||||||||||||||||||
Property and related expenses: | ||||||||||||||||||||||||||||||||||
Property expenses | 3,624 | 4.2 | 742 | 38.0 | 2,648 | 63.5 | (615 | ) | (53.6 | ) | 6,399 | 6.8 | ||||||||||||||||||||||
Real estate taxes | 1,252 | 3.6 | 1,599 | 114.5 | 3,358 | 158.1 | (429 | ) | (27.4 | ) | 5,780 | 14.7 | ||||||||||||||||||||||
Provision for bad debts | (564 | ) | (147.3 | ) | — | — | 226 | 100.0 | — | — | (338 | ) | (85.4 | ) | ||||||||||||||||||||
Ground leases | 32 | 1.1 | — | — | (461 | ) | (76.3 | ) | — | — | (429 | ) | (12.2 | ) | ||||||||||||||||||||
Total | 4,344 | 3.5 | 2,341 | 69.6 | 5,771 | 83.7 | (1,044 | ) | (38.5 | ) | 11,412 | 8.3 | ||||||||||||||||||||||
Net Operating Income, as defined | $ | 18,045 | 6.3 | % | $ | 14,466 | 100.2 | % | $ | 22,385 | 126.3 | % | $ | (1,694 | ) | (171.1 | )% | $ | 53,202 | 16.6 | % |
◦ | $14.0 million increase due to new leases at higher rates and increased occupancy; |
◦ | $0.9 million increase due to amortization of tenant-funded tenant improvements revenue; and |
◦ | $0.8 million increase in parking income resulting from increased occupancy and rates at certain of our buildings; |
◦ | $2.1 million decrease due to reduced supplemental property taxes at three development properties; |
◦ | $0.5 million decrease due to base year resets and adjustments for a number of tenants across the portfolio; |
◦ | $1.4 million increase due to higher expenses at certain properties; and |
◦ | $0.5 million increase due to lower abatements; |
◦ | A $1.0 million decrease in certain recurring operating costs related to electricity, insurance, repairs and maintenance, and various other reimbursable expenses; and |
◦ | A decrease of $0.4 million due to a $1.0 million decrease in non-recurring expenses as compared to the prior year, offset by the impact of $0.6 million of property damage insurance proceeds received in 2015; |
◦ | A $3.1 million decrease in supplemental taxes primarily at three properties that we developed and stabilized in 2014 resulting from lower assessed values than previously estimated and successful appeals; partially offset by |
◦ | $2.2 million due to higher refunds received in 2015 as a result of successful property tax appeals; |
◦ | A net decrease of $28.4 million due to the sale of six buildings during the year ended December 31, 2016, the sale of ten buildings during the year ended December 31, 2015 and the one property held for sale as of December 31, 2016, partially offset by $5.0 million due to a property damage settlement received in 2016 for a property that was disposed of in 2016; |
◦ | A net decrease of $4.0 million attributable to the residential property that was completed in June 2016, consisting of $2.1 million in rental income offset by $6.1 million in property expenses given that the residential property is still in the early stages of operations; offset by |
◦ | An increase of $2.8 million attributable to our one property in “lease-up” at December 31, 2016. |
Year Ended December 31, | Dollar Change | Percentage Change | ||||||||||||
2014 | 2013 | |||||||||||||
($ in thousands) | ||||||||||||||
Gross interest expense | $ | 114,661 | $ | 111,238 | $ | 3,423 | 3.1 | % | ||||||
Capitalized interest | (47,090 | ) | (35,368 | ) | (11,722 | ) | 33.1 | |||||||
Interest expense | $ | 67,571 | $ | 75,870 | $ | (8,299 | ) | (10.9 | )% |
Group | # of Buildings | Rentable Square Feet | ||||
Same Store Properties | 79 | 9,530,338 | ||||
Acquisition Properties | 18 | 2,298,941 | ||||
Stabilized Development and Redevelopment Properties | 3 | 484,536 | ||||
Total Stabilized Portfolio | 100 | 12,313,815 |
Year Ended December 31, | Dollar Change | Percentage Change | ||||||||||||
2013 | 2012 | |||||||||||||
($ in thousands) | ||||||||||||||
Reconciliation to Net Income: | ||||||||||||||
Net Operating Income, as defined | $ | 319,679 | $ | 264,437 | $ | 55,242 | 20.9 | % | ||||||
Unallocated (expense) income: | ||||||||||||||
General and administrative expenses | (39,660 | ) | (36,188 | ) | (3,472 | ) | 9.6 | |||||||
Acquisition-related expenses | (1,962 | ) | (4,937 | ) | 2,975 | (60.3 | ) | |||||||
Depreciation and amortization | (188,887 | ) | (150,521 | ) | (38,366 | ) | 25.5 | |||||||
Interest income and other net investment gains | 1,635 | 848 | 787 | 92.8 | ||||||||||
Interest expense | (75,870 | ) | (79,114 | ) | 3,244 | (4.1 | ) | |||||||
Income (loss) from continuing operations | 14,935 | (5,475 | ) | 20,410 | (372.8 | ) | ||||||||
Income from discontinued operations | 29,630 | 282,576 | (252,946 | ) | (89.5 | ) | ||||||||
Net income | $ | 44,565 | $ | 277,101 | $ | (232,536 | ) | (83.9 | )% | |||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Same Store | Acqui-sitions | Stabilized Redevel-opment | Other | Total | Same Store | Acqui-sitions | Stabilized Redevel-opment | Other | Total | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||
Rental income | $ | 311,615 | $ | 75,613 | $ | 11,520 | $ | 13,151 | $ | 411,899 | $ | 305,074 | $ | 30,000 | $ | 1,562 | $ | 5,528 | $ | 342,164 | |||||||||||||||||||
Tenant reimbursements | 26,762 | 10,286 | 615 | 384 | 38,047 | 24,687 | 4,683 | 276 | 21 | 29,667 | |||||||||||||||||||||||||||||
Other property income | 6,278 | 884 | — | 3 | 7,165 | 1,135 | 339 | — | 13 | 1,487 | |||||||||||||||||||||||||||||
Total | 344,655 | 86,783 | 12,135 | 13,538 | 457,111 | 330,896 | 35,022 | 1,838 | 5,562 | 373,318 | |||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||
Property expenses | 72,571 | 16,348 | 2,497 | 2,699 | 94,115 | 64,931 | 6,784 | 562 | 1,721 | 73,998 | |||||||||||||||||||||||||||||
Real estate taxes | 28,855 | 7,187 | 1,077 | 2,298 | 39,417 | 27,010 | 2,875 | 122 | 1,555 | 31,562 | |||||||||||||||||||||||||||||
Provision for bad debts | 287 | 109 | 4 | (4 | ) | 396 | 152 | — | — | 1 | 153 | ||||||||||||||||||||||||||||
Ground leases | 1,649 | 1,251 | 88 | 516 | 3,504 | 1,692 | 718 | 86 | 672 | 3,168 | |||||||||||||||||||||||||||||
Total | 103,362 | 24,895 | 3,666 | 5,509 | 137,432 | 93,785 | 10,377 | 770 | 3,949 | 108,881 | |||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 241,293 | $ | 61,888 | $ | 8,469 | $ | 8,029 | $ | 319,679 | $ | 237,111 | $ | 24,645 | $ | 1,068 | $ | 1,613 | $ | 264,437 |
Year Ended December 31, 2013 as compared to the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||
Same Store | Acquisitions | Stabilized Redevelopment | Other | Total | ||||||||||||||||||||||||||||||
Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | |||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||||
Rental income | $ | 6,541 | 2.1 | % | $ | 45,613 | 152.0 | % | $ | 9,958 | 637.5 | % | $ | 7,623 | 137.9 | % | $ | 69,735 | 20.4 | % | ||||||||||||||
Tenant reimbursements | 2,075 | 8.4 | 5,603 | 119.6 | 339 | 122.8 | 363 | 1,728.6 | 8,380 | 28.2 | ||||||||||||||||||||||||
Other property income | 5,143 | 453.1 | 545 | 160.8 | — | — | (10 | ) | (76.9 | ) | 5,678 | 381.8 | ||||||||||||||||||||||
Total | 13,759 | 4.2 | 51,761 | 147.8 | 10,297 | 560.2 | 7,976 | 143.4 | 83,793 | 22.4 | ||||||||||||||||||||||||
Property and related expenses: | ||||||||||||||||||||||||||||||||||
Property expenses | 7,640 | 11.8 | 9,564 | 141.0 | 1,935 | 344.3 | 978 | 56.8 | 20,117 | 27.2 | ||||||||||||||||||||||||
Real estate taxes | 1,845 | 6.8 | 4,312 | 150.0 | 955 | 782.8 | 743 | 47.8 | 7,855 | 24.9 | ||||||||||||||||||||||||
Provision for bad debts | 135 | 88.8 | 109 | 100.0 | 4 | 100.0 | (5 | ) | (500.0 | ) | 243 | 158.8 | ||||||||||||||||||||||
Ground leases | (43 | ) | (2.5 | ) | 533 | 74.2 | 2 | 2.3 | (156 | ) | (23.2 | ) | 336 | 10.6 | ||||||||||||||||||||
Total | 9,577 | 10.2 | 14,518 | 139.9 | 2,896 | 376.1 | 1,560 | 39.5 | 28,551 | 26.2 | ||||||||||||||||||||||||
Net Operating Income, as defined | $ | 4,182 | 1.8 | % | $ | 37,243 | 151.1 | % | $ | 7,401 | 693.0 | % | $ | 6,416 | 397.8 | % | $ | 55,242 | 20.9 | % |
Year Ended December 31, | Dollar Change | Percentage Change | ||||||||||||
2016 | 2015 | |||||||||||||
($ in thousands) | ||||||||||||||
Gross interest expense | $ | 105,263 | $ | 109,647 | $ | (4,384 | ) | (4.0 | )% | |||||
Capitalized interest | (49,460 | ) | (51,965 | ) | 2,505 | 4.8 | ||||||||
Interest expense | $ | 55,803 | $ | 57,682 | $ | (1,879 | ) | (3.3 | )% |
◦ | Two office development projects comprising four office buildings that were completed and stabilized in the fourth quarter of 2015; |
◦ | One office development project comprising two office buildings that was completed and stabilized in the fourth quarter of 2014; |
◦ | One office development project consisting of three office buildings that was completed and stabilized in the third quarter of 2014; and |
◦ | One office redevelopment property that was stabilized in the first quarter of 2014 following its one year lease-up period. |
Group | # of Buildings | Rentable Square Feet | ||||
Same Store Properties | 86 | 10,818,177 | ||||
Stabilized Development and Redevelopment Properties | 10 | 1,806,642 | ||||
2014 Acquisition Properties | 5 | 407,587 | ||||
Total Stabilized Portfolio | 101 | 13,032,406 |
Year Ended December 31, | Dollar Change | Percentage Change | ||||||||||||
2015 | 2014 | |||||||||||||
($ in thousands) | ||||||||||||||
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined: | ||||||||||||||
Net Income Available to Common Stockholders | $ | 220,831 | $ | 166,969 | $ | 53,862 | 32.3 | % | ||||||
Preferred dividends | 13,250 | 13,250 | — | — | ||||||||||
Net income attributable to Kilroy Realty Corporation | 234,081 | 180,219 | 53,862 | 29.9 | ||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 4,339 | 3,589 | 750 | 20.9 | ||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 184 | — | 184 | 100.0 | ||||||||||
Net income | $ | 238,604 | $ | 183,808 | $ | 54,796 | 29.8 | % | ||||||
Income from discontinued operations (1) | — | (124,495 | ) | 124,495 | (100.0 | ) | ||||||||
Income from continuing operations | $ | 238,604 | $ | 59,313 | $ | 179,291 | 302.3 | % | ||||||
Unallocated expense (income): | ||||||||||||||
General and administrative expenses | 48,265 | 46,152 | 2,113 | 4.6 | ||||||||||
Acquisition-related expenses | 497 | 1,479 | (982 | ) | (66.4 | ) | ||||||||
Depreciation and amortization | 204,294 | 202,417 | 1,877 | 0.9 | ||||||||||
Interest income and other net investment (gains) losses | (243 | ) | (561 | ) | 318 | (56.7 | ) | |||||||
Interest expense | 57,682 | 67,571 | (9,889 | ) | (14.6 | ) | ||||||||
Gains on sales of land, net | (17,116 | ) | (3,490 | ) | (13,626 | ) | 390.4 | |||||||
Gains on sales of depreciable operating properties | (109,950 | ) | — | (109,950 | ) | 100.0 | ||||||||
Net Operating Income, as defined | $ | 422,033 | $ | 372,881 | $ | 49,152 | 13.2 | % |
(1) | The Company adopted ASU 2014-08 effective January 1, 2015 (see Note 2 “Basis of Presentation and Significant Accounting Policies” to our consolidated financial statements included in this report for additional information). As a result, results of operations for properties classified as held for sale and/or disposed of subsequent to January 1, 2015 are presented in continuing operations. Prior to January 1, 2015, properties classified as held for sale and/or disposed of are presented in discontinued operations. |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||||
Same Store | Stabilized Develop-ment & Redevel-opment | 2014 Acquisitions | 2015 Held for Sale Dispositi-ons & Other | Total | Same Store | Stabilized Develop-ment & Redevel-opment | 2014 Acquisitions | 2015 Held for Sale Dispositi-ons & Other | Total | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||
Rental income | $ | 411,089 | $ | 73,949 | $ | 15,621 | $ | 24,696 | $ | 525,355 | $ | 392,567 | $ | 31,625 | $ | 7,153 | $ | 34,983 | $ | 466,328 | |||||||||||||||||||
Tenant reimbursements | 37,144 | 9,827 | 2,566 | 4,237 | 53,774 | 38,673 | 1,850 | 593 | 5,601 | 46,717 | |||||||||||||||||||||||||||||
Other property income | 2,021 | 112 | — | 13 | 2,146 | 8,498 | 2 | — | 180 | 8,680 | |||||||||||||||||||||||||||||
Total | 450,254 | 83,888 | 18,187 | 28,946 | 581,275 | 439,738 | 33,477 | 7,746 | 40,764 | 521,725 | |||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||
Property expenses | 93,868 | 6,049 | 1,054 | 4,407 | 105,378 | 91,526 | 3,529 | 289 | 5,170 | 100,514 | |||||||||||||||||||||||||||||
Real estate taxes | 35,851 | 9,546 | 1,328 | 3,498 | 50,223 | 36,516 | 3,569 | 336 | 4,776 | 45,197 | |||||||||||||||||||||||||||||
Provision for bad debts | 695 | (98 | ) | — | (52 | ) | 545 | (103 | ) | 98 | — | 63 | 58 | ||||||||||||||||||||||||||
Ground leases | 3,096 | — | — | — | 3,096 | 3,075 | — | — | — | 3,075 | |||||||||||||||||||||||||||||
Total | 133,510 | 15,497 | 2,382 | 7,853 | 159,242 | 131,014 | 7,196 | 625 | 10,009 | 148,844 | |||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 316,744 | $ | 68,391 | $ | 15,805 | $ | 21,093 | $ | 422,033 | $ | 308,724 | $ | 26,281 | $ | 7,121 | $ | 30,755 | $ | 372,881 |
Year Ended December 31, 2015 as compared to the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||
Same Store | Stabilized Development & Redevelopment | 2014 Acquisitions | 2015 Held for Sale, Dispositions & Other | Total | ||||||||||||||||||||||||||||||
Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | |||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||||
Rental income | $ | 18,522 | 4.7 | % | $ | 42,324 | 133.8 | % | $ | 8,468 | 118.4 | % | $ | (10,287 | ) | (29.4 | )% | $ | 59,027 | 12.7 | % | |||||||||||||
Tenant reimbursements | (1,529 | ) | (4.0 | ) | 7,977 | 431.2 | 1,973 | 332.7 | (1,364 | ) | (24.4 | ) | 7,057 | 15.1 | ||||||||||||||||||||
Other property income | (6,477 | ) | (76.2 | ) | 110 | 5,500.0 | — | — | (167 | ) | (92.8 | ) | (6,534 | ) | (75.3 | ) | ||||||||||||||||||
Total | 10,516 | 2.4 | 50,411 | 150.6 | 10,441 | 134.8 | (11,818 | ) | (29.0 | ) | 59,550 | 11.4 | ||||||||||||||||||||||
Property and related expenses: | ||||||||||||||||||||||||||||||||||
Property expenses | 2,342 | 2.6 | 2,520 | 71.4 | 765 | 264.7 | (763 | ) | (14.8 | ) | 4,864 | 4.8 | ||||||||||||||||||||||
Real estate taxes | (665 | ) | (1.8 | ) | 5,977 | 167.5 | 992 | 295.2 | (1,278 | ) | (26.8 | ) | 5,026 | 11.1 | ||||||||||||||||||||
Provision for bad debts | 798 | (774.8 | ) | (196 | ) | (200.0 | ) | — | — | (115 | ) | (182.5 | ) | 487 | 839.7 | |||||||||||||||||||
Ground leases | 21 | 0.7 | — | — | — | — | — | — | 21 | 0.7 | ||||||||||||||||||||||||
Total | 2,496 | 1.9 | 8,301 | 115.4 | 1,757 | 281.1 | (2,156 | ) | (21.5 | ) | 10,398 | 7.0 | ||||||||||||||||||||||
Net Operating Income, as defined | $ | 8,020 | 2.6 | % | $ | 42,110 | 160.2 | % | $ | 8,684 | 121.9 | % | $ | (9,662 | ) | (31.4 | )% | $ | 49,152 | 13.2 | % |
◦ | $16.7 million increase due to new leases at higher rates and increased occupancy; |
◦ | $1.0 million increase due to amortization of tenant funded improvements revenue; and |
◦ | $1.0 million increase in parking income resulting from increased occupancy and rates at certain of our buildings; |
◦ | $3.3 million increase in certain recurring operating costs related to security, parking, other contract services, repairs and maintenance, and various other reimbursable expenses; |
◦ | A partially offsetting decrease of $1.0 million due to a property damage settlement received in 2015 and lower non-recurring legal fees in 2015; and |
Year Ended December 31, | Dollar Change | Percentage Change | Year Ended December 31, | Dollar Change | Percentage Change | |||||||||||||||||||||||
2013 | 2012 | 2015 | 2014 | |||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | |||||||||||||||||||||||||||
Gross interest expense | $ | 111,238 | $ | 98,906 | $ | 12,332 | 12.5 | % | $ | 109,647 | $ | 114,661 | $ | (5,014 | ) | (4.4 | )% | |||||||||||
Capitalized interest | (35,368 | ) | (19,792 | ) | (15,576 | ) | 78.7 | (51,965 | ) | (47,090 | ) | (4,875 | ) | 10.4 | ||||||||||||||
Interest expense | $ | 75,870 | $ | 79,114 | $ | (3,244 | ) | (4.1 | )% | $ | 57,682 | $ | 67,571 | $ | (9,889 | ) | (14.6 | )% |
Shares/Units at December 31, 2014 | Aggregate Principal Amount or $ Value Equivalent | % of Total Market Capitalization | |||||||
($ in thousands) | |||||||||
Debt: | |||||||||
Unsecured Revolving Credit Facility | $ | 140,000 | 1.6 | % | |||||
Unsecured Term Loan Facility | 150,000 | 1.7 | |||||||
Unsecured Term Loan | 39,000 | 0.5 | |||||||
Unsecured Senior Notes due 2015 (1) | 325,000 | 3.7 | |||||||
Unsecured Senior Notes due 2018 (1) | 325,000 | 3.7 | |||||||
Unsecured Senior Notes due 2020 (1) | 250,000 | 2.9 | |||||||
Unsecured Senior Notes due 2023 (1) | 300,000 | 3.4 | |||||||
Unsecured Senior Notes due 2029 (1) | 400,000 | 4.6 | |||||||
Secured debt (1) | 536,022 | 6.1 | |||||||
Total debt | 2,465,022 | 28.2 | |||||||
Equity and Noncontrolling Interests: | |||||||||
6.875% Series G Cumulative Redeemable Preferred stock (2) | 4,000,000 | 100,000 | 1.1 | ||||||
6.375% Series H Cumulative Redeemable Preferred stock (2) | 4,000,000 | 100,000 | 1.1 | ||||||
Common limited partnership units outstanding (3)(4) | 1,804,200 | 124,616 | 1.5 | ||||||
Shares of common stock outstanding (4) | 86,259,684 | 5,957,956 | 68.1 | ||||||
Total equity and noncontrolling interests | 6,282,572 | 71.8 | |||||||
Total Market Capitalization | $ | 8,747,594 | 100.0 | % |
Shares/Units at December 31, 2016 | Aggregate Principal Amount or $ Value Equivalent | % of Total Market Capitalization | |||||||
($ in thousands) | |||||||||
Debt: (1) (2) (3) | |||||||||
Unsecured Term Loan Facility | $ | 150,000 | 1.6 | % | |||||
Unsecured Term Loan | 39,000 | 0.4 | |||||||
Unsecured Senior Notes due 2018 | 325,000 | 3.5 | |||||||
Unsecured Senior Notes due 2020 | 250,000 | 2.6 | |||||||
Unsecured Senior Notes due 2023 | 300,000 | 3.1 | |||||||
Unsecured Senior Notes due 2025 | 400,000 | 4.2 | |||||||
Unsecured Senior Notes due 2029 | 400,000 | 4.2 | |||||||
Secured debt (4) | 469,766 | 4.9 | |||||||
Total debt | 2,333,766 | 24.5 | |||||||
Equity and Noncontrolling Interests in the Operating Partnership: (5) | |||||||||
6.875% Series G Cumulative Redeemable Preferred stock (6) | 4,000,000 | 100,000 | 1.0 | ||||||
6.375% Series H Cumulative Redeemable Preferred stock (6) | 4,000,000 | 100,000 | 1.0 | ||||||
Common limited partnership units outstanding (7) | 2,381,543 | 174,377 | 1.9 | ||||||
Shares of common stock outstanding (7) | 93,219,439 | 6,825,527 | 71.6 | ||||||
Total Equity and Noncontrolling Interests in the Operating Partnership | 7,199,904 | 75.5 | |||||||
Total Market Capitalization | $ | 9,533,670 | 100.0 | % |
(1) | In September, the Company completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with a delayed draw option required to be exercised by February 17, 2017. The table above does not reflect any amounts pertaining to these notes because there were no amounts drawn or outstanding as of December 31, 2016. |
(2) | There was no outstanding balance on the unsecured line of credit as of December 31, 2016. |
(3) | Represents gross aggregate principal amount due at maturity before the effect of |
In November 2016, the Company entered into a $170.0 million, 10-year mortgage note due in December 2026 with a fixed interest rate of 3.57%. |
(5) | Value based on $25.00 per share liquidation preference. |
Represents common units not owned by the Company. |
Value based on closing price per share of our common stock of |
December 31, 2014 | December 31, 2013 | ||||||
(in thousands) | |||||||
Outstanding borrowings | $ | 140,000 | $ | 45,000 | |||
Remaining borrowing capacity | 460,000 | 455,000 | |||||
Total borrowing capacity (1)(2) | $ | 600,000 | $ | 500,000 | |||
Interest rate (2)(3) | 1.41 | % | 1.62 | % | |||
Facility fee-annual rate (4) | 0.250% | 0.300% | |||||
Maturity date (2) | July 2019 | April 2017 |
◦ | During the year ended December 31, 2016, we completed the sale of six office buildings and five undeveloped land parcels to unaffiliated third parties for gross sales proceeds totaling approximately $330.7 million. In addition, in January 2017 we completed the sale of the operating property that was held for sale at December 31, 2016 for total gross proceeds of $12.1 million. |
◦ | During the second half of 2016, we completed two strategic ventures with NBREM whereby NBREM contributed a total of $452.9 million for a 44% common equity interest in two existing previously |
◦ | In November 2016, the Operating Partnership entered into a ten-year, non-recourse mortgage note for $170.0 million. The mortgage note bears interest at a fixed rate of 3.57% and matures on December 1, 2026. A portion of the proceeds from this note were used to repay a a total of $64.4 million of secured debt at par. |
◦ | During 2016, we issued and sold a total of 451,398shares of our common stock under our at-the-market stock offering program at a weighted average price of $71.50per share before selling commissions. The net offering proceeds (after deducting selling commissions) were approximately $31.9 million(see “—Liquidity Sources” below for additional information). |
◦ | In September 2016, the Operating Partnership completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with a delayed draw option required to be exercised by February 17, 2017. No amounts were drawn or outstanding as of December 31, 2016. |
◦ | In January 2017, we raised approximately $308.8 million of net proceeds through a public offering of 4,427,500 shares of common stock. |
◦ | On January 13, 2017, the Company and the Operating Partnership paid a special cash dividend and distribution, as applicable, of $1.90 per share of common stock and common unit, as applicable, to stockholders and unitholders, as applicable, of record on December 30, 2016. This special cash dividend was in addition to the regular quarterly cash dividend of $0.375 per share of common stock. The total amount of the regular quarterly cash dividend and the special cash dividend was approximately $35.9 million and $181.6 million, respectively. |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Outstanding borrowings | $ | — | $ | — | |||
Remaining borrowing capacity | 600,000 | 600,000 | |||||
Total borrowing capacity (1) | $ | 600,000 | $ | 600,000 | |||
Interest rate (2) | 1.82 | % | 1.48 | % | |||
Facility fee-annual rate (3) | 0.200% | ||||||
Maturity date | July 2019 |
(1) | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility. |
(2) | Our unsecured revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.050%. |
(3) | Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of December 31, 2016 and 2015, $3.3 million and $4.6 million of deferred financing costs remained to be amortized through the amended maturity date of our unsecured revolving credit facility, which are included in prepaid expenses and other assets, net on our consolidated balance sheets. |
Year Ended December 31, | Year Ended December 31, | ||||||||||||
2014 | 2013 | 2016 | 2015 | ||||||||||
(in millions, except share and per share data) | (in millions, except share and per share data) | ||||||||||||
Shares of common stock sold during the year | 1,599,123 | 1,040,838 | 451,398 | 1,866,267 | |||||||||
Weighted average price per common share | $ | 65.49 | $ | 53.11 | |||||||||
Weighted average price per share of common stock | $ | 71.50 | $ | 75.06 | |||||||||
Aggregate gross proceeds | $ | 104.7 | $ | 55.3 | $ | 32.3 | $ | 140.1 | |||||
Aggregate net proceeds after sales agent compensation | $ | 103.1 | $ | 54.4 | |||||||||
Aggregate net proceeds after selling commissions | $ | 31.9 | $ | 138.2 |
Aggregate Principal Amount Outstanding | |||
(in thousands) | |||
Unsecured Revolving Credit Facility | $ | 140,000 | |
Unsecured Term Loan Facility | 150,000 | ||
Unsecured Term Loan | 39,000 | ||
Unsecured Senior Notes due 2015 (1) | 325,000 | ||
Unsecured Senior Notes due 2018 (1) | 325,000 | ||
Unsecured Senior Notes due 2020 (1) | 250,000 | ||
Unsecured Senior Notes due 2023 (1) | 300,000 | ||
Unsecured Senior Notes due 2029 (1) | 400,000 | ||
Secured Debt (1) | 536,022 | ||
Total Unsecured and Secured Debt | $ | 2,465,022 |
Aggregate Principal Amount Outstanding (1)(2) | |||
(in thousands) | |||
Unsecured Term Loan Facility | $ | 150,000 | |
Unsecured Term Loan | 39,000 | ||
Unsecured Senior Notes due 2018 | 325,000 | ||
Unsecured Senior Notes due 2020 | 250,000 | ||
Unsecured Senior Notes due 2023 | 300,000 | ||
Unsecured Senior Notes due 2025 | 400,000 | ||
Unsecured Senior Notes due 2029 | 400,000 | ||
Secured Debt | 469,766 | ||
Total Unsecured and Secured Debt | 2,333,766 | ||
Less: Unamortized Net Discounts and Deferred Financing Costs | (13,643 | ) | |
Total Debt, Net | $ | 2,320,123 |
(1) |
(2) | There was no outstanding balance on the unsecured line of credit as of December 31, |
Percentage of Total Debt | Weighted Average Interest Rate | Percentage of Total Debt (1) | Weighted Average Interest Rate (1) (2) | |||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | |||||||||||||||
Secured vs. unsecured: | ||||||||||||||||||||||
Unsecured | 78.3 | % | 75.1 | % | 4.2 | % | 4.6 | % | 79.9 | % | 83.2 | % | 4.4 | % | 4.3 | % | ||||||
Secured | 21.7 | 24.9 | 5.2 | % | 5.2 | % | 20.1 | 16.8 | 4.4 | % | 5.1 | % | ||||||||||
Variable-rate vs. fixed-rate: | ||||||||||||||||||||||
Variable-rate | 13.4 | 8.9 | 1.5 | % | 1.9 | % | 8.1 | 8.4 | 1.8 | % | 1.4 | % | ||||||||||
Fixed-rate | 86.6 | 91.1 | 4.9 | % | 5.0 | % | 91.9 | 91.6 | 4.6 | % | 4.7 | % | ||||||||||
Stated rate | 4.4 | % | 4.8 | % | 4.4 | % | 4.5 | % | ||||||||||||||
GAAP effective rate | 4.3 | % | 4.8 | % | 4.3 | % | 4.4 | % | ||||||||||||||
GAAP effective rate including debt issuance costs | 4.5 | % | 5.1 | % | 4.5 | % | 4.6 | % |
(1) | In September, the Company completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with a delayed draw option required to be exercised by February 17, 2017. The table above does not reflect any amounts pertaining to these notes because there were no amounts drawn or outstanding as of December 31, 2016. The table above also does not reflect any amounts pertaining to the unsecured line of credit as there were no amounts outstanding as of December 31, 2016. |
(2) | As of the end of the period presented. |
(3) | Excludes the impact of the amortization of any debt discounts/ |
Payment Due by Period | Payment Due by Period | |||||||||||||||||||||||||||||||||||||
Less than 1 Year (2015) | 2-3 Years (2016-2017) | 4-5 Years (2018-2019) | More than 5 Years (After 2019) | Total | Less than 1 Year (2017) | 2-3 Years (2018-2019) | 4-5 Years (2020-2021) | More than 5 Years (After 2021) | Total | |||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||
Principal payments: secured debt (1) | $ | 70,103 | $ | 171,179 | $ | 203,097 | $ | 91,643 | $ | 536,022 | $ | 7,286 | $ | 202,978 | $ | 10,479 | $ | 249,023 | $ | 469,766 | ||||||||||||||||||
Principal payments: unsecured debt (2) | 325,000 | — | 654,000 | 950,000 | 1,929,000 | — | 514,000 | 250,000 | 1,350,000 | 2,114,000 | ||||||||||||||||||||||||||||
Interest payments: fixed-rate debt (3) | 101,552 | 118,902 | 95,594 | 235,539 | 551,587 | 105,663 | 177,455 | 135,337 | 302,302 | 720,757 | ||||||||||||||||||||||||||||
Interest payments: variable-rate debt (4) | 2,948 | 5,897 | 4,410 | — | 13,255 | 3,495 | 5,228 | — | — | 8,723 | ||||||||||||||||||||||||||||
Interest payments: unsecured revolving credit facility (5) | 1,974 | 3,948 | 2,953 | — | 8,875 | |||||||||||||||||||||||||||||||||
Ground lease obligations (6) | 3,120 | 6,240 | 6,240 | 154,358 | 169,958 | |||||||||||||||||||||||||||||||||
Lease and contractual commitments (7) | 87,493 | — | — | — | 87,493 | |||||||||||||||||||||||||||||||||
Development commitments (8) | 389,000 | 76,000 | — | — | 465,000 | |||||||||||||||||||||||||||||||||
Ground lease obligations (5) | 4,934 | 9,868 | 9,868 | 231,402 | 256,072 | |||||||||||||||||||||||||||||||||
Lease and other contractual commitments (6) | 69,452 | 10,029 | — | 148 | 79,629 | |||||||||||||||||||||||||||||||||
Development commitments (7) | 262,000 | 197,000 | — | — | 459,000 | |||||||||||||||||||||||||||||||||
Total | $ | 981,190 | $ | 382,166 | $ | 966,294 | $ | 1,431,540 | $ | 3,761,190 | $ | 452,830 | $ | 1,116,558 | $ | 405,684 | $ | 2,132,875 | $ | 4,107,947 |
(1) | Represents gross aggregate principal amount before the effect of the unamortized premium and deferred financing costs of approximately |
(2) | Represents gross aggregate principal amount before the effect of the unamortized discount and deferred financing costs of approximately |
(3) | As of December 31, |
(4) | As of December 31, |
(5) |
Reflects minimum lease payments through the contractual lease expiration date before the impact of extension options. See Note 18 “Commitment and Contingencies” to our consolidated financial statements included in this report for further information. |
Amounts represent commitments under signed leases and contracts for operating properties, excluding tenant-funded tenant |
Amounts represent commitments under signed leases for pre-leased development projects and contractual commitments for projects under construction, as of December 31, |
Shares/Units at December 31, 2016 | Aggregate Principal Amount or $ Value Equivalent | % of Total Market Capitalization | |||||||
($ in thousands) | |||||||||
Debt: (1) (2) (3) | |||||||||
Unsecured Term Loan Facility | $ | 150,000 | 1.6 | % | |||||
Unsecured Term Loan | 39,000 | 0.4 | |||||||
Unsecured Senior Notes due 2018 | 325,000 | 3.5 | |||||||
Unsecured Senior Notes due 2020 | 250,000 | 2.6 | |||||||
Unsecured Senior Notes due 2023 | 300,000 | 3.1 | |||||||
Unsecured Senior Notes due 2025 | 400,000 | 4.2 | |||||||
Unsecured Senior Notes due 2029 | 400,000 | 4.2 | |||||||
Secured debt (4) | 469,766 | 4.9 | |||||||
Total debt | 2,333,766 | 24.5 | |||||||
Equity and Noncontrolling Interests in the Operating Partnership: (5) | |||||||||
6.875% Series G Cumulative Redeemable Preferred stock (6) | 4,000,000 | 100,000 | 1.0 | ||||||
6.375% Series H Cumulative Redeemable Preferred stock (6) | 4,000,000 | 100,000 | 1.0 | ||||||
Common limited partnership units outstanding (7) | 2,381,543 | 174,377 | 1.9 | ||||||
Shares of common stock outstanding (7) | 93,219,439 | 6,825,527 | 71.6 | ||||||
Total Equity and Noncontrolling Interests in the Operating Partnership | 7,199,904 | 75.5 | |||||||
Total Market Capitalization | $ | 9,533,670 | 100.0 | % |
(1) | In September, the Company completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with a delayed draw option required to be exercised by February 17, 2017. The table above does not reflect any amounts pertaining to these notes because there were no amounts drawn or outstanding as of December 31, 2016. |
(2) | There was no outstanding balance on the unsecured line of credit as of December 31, 2016. |
(3) | Represents gross aggregate principal amount due at maturity before the effect of the following at December 31, 2016: $11.5 million of unamortized deferred financing costs, $6.6 million of unamortized discounts for the unsecured senior notes and $4.4 million of unamortized premiums for the secured debt. |
(4) | In November 2016, the Company entered into a $170.0 million, 10-year mortgage note due in December 2026 with a fixed interest rate of 3.57%. |
(5) | Value based on $25.00 per share liquidation preference. |
(6) | Represents common units not owned by the Company. |
(7) | Value based on closing price per share of our common stock of $73.22 as of December 31, 2016. |
◦ | During the year ended December 31, 2016, we completed the sale of six office buildings and five undeveloped land parcels to unaffiliated third parties for gross sales proceeds totaling approximately $330.7 million. In addition, in January 2017 we completed the sale of the operating property that was held for sale at December 31, 2016 for total gross proceeds of $12.1 million. |
◦ | During the second half of 2016, we completed two strategic ventures with NBREM whereby NBREM contributed a total of $452.9 million for a 44% common equity interest in two existing previously |
◦ | In November 2016, the Operating Partnership entered into a ten-year, non-recourse mortgage note for $170.0 million. The mortgage note bears interest at a fixed rate of 3.57% and matures on December 1, 2026. A portion of the proceeds from this note were used to repay a a total of $64.4 million of secured debt at par. |
◦ | During 2016, we issued and sold a total of 451,398shares of our common stock under our at-the-market stock offering program at a weighted average price of $71.50per share before selling commissions. The net offering proceeds (after deducting selling commissions) were approximately $31.9 million(see “—Liquidity Sources” below for additional information). |
◦ | In September 2016, the Operating Partnership completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with a delayed draw option required to be exercised by February 17, 2017. No amounts were drawn or outstanding as of December 31, 2016. |
◦ | In January 2017, we raised approximately $308.8 million of net proceeds through a public offering of 4,427,500 shares of common stock. |
◦ | On January 13, 2017, the Company and the Operating Partnership paid a special cash dividend and distribution, as applicable, of $1.90 per share of common stock and common unit, as applicable, to stockholders and unitholders, as applicable, of record on December 30, 2016. This special cash dividend was in addition to the regular quarterly cash dividend of $0.375 per share of common stock. The total amount of the regular quarterly cash dividend and the special cash dividend was approximately $35.9 million and $181.6 million, respectively. |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Office Properties:(1) | |||||||||||
Capital Expenditures: | |||||||||||
Capital expenditures per square foot | $ | 0.84 | $ | 0.73 | $ | 0.78 | |||||
Tenant Improvement and Leasing Costs (2) | |||||||||||
Replacement tenant square feet (3) | 741,573 | 850,295 | 607,118 | ||||||||
Tenant improvements per square foot commenced | $ | 39.06 | $ | 39.24 | $ | 31.75 | |||||
Leasing commissions per square foot commenced | $ | 11.42 | $ | 12.25 | $ | 11.22 | |||||
Total per square foot | $ | 50.48 | $ | 51.48 | $ | 42.97 | |||||
Renewal tenant square feet | 1,333,231 | 1,188,308 | 629,664 | ||||||||
Tenant improvements per square foot commenced | $ | 14.23 | $ | 16.90 | $ | 9.63 | |||||
Leasing commissions per square foot commenced | $ | 9.71 | $ | 10.32 | $ | 7.91 | |||||
Total per square foot | $ | 23.94 | $ | 27.22 | $ | 17.53 | |||||
Total per square foot per year | $ | 5.81 | $ | 5.97 | $ | 5.30 | |||||
Average remaining lease term (in years) | 5.8 | 6.3 | 5.7 |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Outstanding borrowings | $ | — | $ | — | |||
Remaining borrowing capacity | 600,000 | 600,000 | |||||
Total borrowing capacity (1) | $ | 600,000 | $ | 600,000 | |||
Interest rate (2) | 1.82 | % | 1.48 | % | |||
Facility fee-annual rate (3) | 0.200% | ||||||
Maturity date | July 2019 |
(1) | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility. |
(2) | Our unsecured revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.050%. |
(3) | Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of December 31, 2016 and 2015, $3.3 million and $4.6 million of deferred financing costs remained to be amortized through the amended maturity date of our unsecured revolving credit facility, which are included in prepaid expenses and other assets, net on our consolidated balance sheets. |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
(in millions, except share and per share data) | |||||||
Shares of common stock sold during the year | 451,398 | 1,866,267 | |||||
Weighted average price per share of common stock | $ | 71.50 | $ | 75.06 | |||
Aggregate gross proceeds | $ | 32.3 | $ | 140.1 | |||
Aggregate net proceeds after selling commissions | $ | 31.9 | $ | 138.2 |
Aggregate Principal Amount Outstanding (1)(2) | |||
(in thousands) | |||
Unsecured Term Loan Facility | $ | 150,000 | |
Unsecured Term Loan | 39,000 | ||
Unsecured Senior Notes due 2018 | 325,000 | ||
Unsecured Senior Notes due 2020 | 250,000 | ||
Unsecured Senior Notes due 2023 | 300,000 | ||
Unsecured Senior Notes due 2025 | 400,000 | ||
Unsecured Senior Notes due 2029 | 400,000 | ||
Secured Debt | 469,766 | ||
Total Unsecured and Secured Debt | 2,333,766 | ||
Less: Unamortized Net Discounts and Deferred Financing Costs | (13,643 | ) | |
Total Debt, Net | $ | 2,320,123 |
(1) | In September, the Company completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with a delayed draw option required to be exercised by February 17, 2017. The table above does not reflect any amounts pertaining to these notes because there were no amounts drawn or outstanding as of December 31, 2016. |
(2) | There was no outstanding balance on the unsecured line of credit as of December 31, 2016. |
Percentage of Total Debt (1) | Weighted Average Interest Rate (1) (2) | ||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||
Secured vs. unsecured: | |||||||||||
Unsecured (3) | 79.9 | % | 83.2 | % | 4.4 | % | 4.3 | % | |||
Secured | 20.1 | 16.8 | 4.4 | % | 5.1 | % | |||||
Variable-rate vs. fixed-rate: | |||||||||||
Variable-rate | 8.1 | 8.4 | 1.8 | % | 1.4 | % | |||||
Fixed-rate (3) | 91.9 | 91.6 | 4.6 | % | 4.7 | % | |||||
Stated rate (3) | 4.4 | % | 4.5 | % | |||||||
GAAP effective rate (4) | 4.3 | % | 4.4 | % | |||||||
GAAP effective rate including debt issuance costs | 4.5 | % | 4.6 | % |
(1) | In September, the Company completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with |
(2) | As of the end of the period presented. |
(3) | Excludes |
Payment Due by Period | |||||||||||||||||||
Less than 1 Year (2017) | 2-3 Years (2018-2019) | 4-5 Years (2020-2021) | More than 5 Years (After 2021) | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Principal payments: secured debt (1) | $ | 7,286 | $ | 202,978 | $ | 10,479 | $ | 249,023 | $ | 469,766 | |||||||||
Principal payments: unsecured debt (2) | — | 514,000 | 250,000 | 1,350,000 | 2,114,000 | ||||||||||||||
Interest payments: fixed-rate debt (3) | 105,663 | 177,455 | 135,337 | 302,302 | 720,757 | ||||||||||||||
Interest payments: variable-rate debt (4) | 3,495 | 5,228 | — | — | 8,723 | ||||||||||||||
Ground lease obligations (5) | 4,934 | 9,868 | 9,868 | 231,402 | 256,072 | ||||||||||||||
Lease and other contractual commitments (6) | 69,452 | 10,029 | — | 148 | 79,629 | ||||||||||||||
Development commitments (7) | 262,000 | 197,000 | — | — | 459,000 | ||||||||||||||
Total | $ | 452,830 | $ | 1,116,558 | $ | 405,684 | $ | 2,132,875 | $ | 4,107,947 |
(1) | Represents gross aggregate principal amount before the effect of the unamortized premium and deferred financing costs of approximately$4.4 millionand$1.4 millionas of December 31, 2016. |
(2) | Represents gross aggregate principal amount before the effect of the unamortized discount and deferred financing costs of approximately$6.6 millionand$10.1 million as of December 31, 2016. Includes $175.0 million of Series A Notes and $75.0 million of Series B Notes issuable pursuant to the Note Purchase Agreement for which no Series A or B Notes were issued and outstanding as of December 31, 2016 but the Company is committed to issuing by February 17, 2017. |
(3) | As of December 31, 2016,91.9%of our debt was contractually fixed. The information in the table above reflects our projected interest rate obligations for these fixed-rate payments based on the contractual interest rates on an accrual basis and scheduled maturity dates. Amounts include interest rate obligations for the Series A and B Notes issuable pursuant to the Note Purchase Agreement for which no Series A or B Notes were issued and outstanding as of December 31, 2016 but the Company is committed to issuing by February 17, 2017. |
(4) | As of December 31, 2016, 8.1%of our debt bore interest at variable rates which was incurred under the unsecured term loan facility and unsecured term loan. The variable interest rate payments are based on LIBOR plus a spread of 1.150%as of December 31, 2016. The information in the table above reflects our projected interest rate obligations for these variable-rate payments based on outstanding principal balances as of December 31, 2016, the scheduled interest payment dates and the contractual maturity dates. |
(5) | Reflects minimum lease payments through the contractual lease expiration date before the impact of extension options. See Note 18 “Commitment and Contingencies” to our consolidated financial statements included in this report for further information. |
(6) | Amounts represent commitments under signed leases and contracts for operating properties, excluding tenant-funded tenant improvements, and for other contractual commitments. The timing of these expenditures may fluctuate. |
(7) | Amounts represent commitments under signed leases for pre-leased development projects and contractual commitments for projects under construction, as of December 31, 2016, and also includes $45.0 million for three recently completed office projects, the project in “lease-up” and the completed residential project. The timing of these expenditures may fluctuate based on the ultimate progress of construction. We may start additional construction in 2017 (see “—Development Activities” for additional information). |
Shares/Units at December 31, 2016 | Aggregate Principal Amount or $ Value Equivalent | % of Total Market Capitalization | |||||||
($ in thousands) | |||||||||
Debt: (1) (2) (3) | |||||||||
Unsecured Term Loan Facility | $ | 150,000 | 1.6 | % | |||||
Unsecured Term Loan | 39,000 | 0.4 | |||||||
Unsecured Senior Notes due 2018 | 325,000 | 3.5 | |||||||
Unsecured Senior Notes due 2020 | 250,000 | 2.6 | |||||||
Unsecured Senior Notes due 2023 | 300,000 | 3.1 | |||||||
Unsecured Senior Notes due 2025 | 400,000 | 4.2 | |||||||
Unsecured Senior Notes due 2029 | 400,000 | 4.2 | |||||||
Secured debt (4) | 469,766 | 4.9 | |||||||
Total debt | 2,333,766 | 24.5 | |||||||
Equity and Noncontrolling Interests in the Operating Partnership: (5) | |||||||||
6.875% Series G Cumulative Redeemable Preferred stock (6) | 4,000,000 | 100,000 | 1.0 | ||||||
6.375% Series H Cumulative Redeemable Preferred stock (6) | 4,000,000 | 100,000 | 1.0 | ||||||
Common limited partnership units outstanding (7) | 2,381,543 | 174,377 | 1.9 | ||||||
Shares of common stock outstanding (7) | 93,219,439 | 6,825,527 | 71.6 | ||||||
Total Equity and Noncontrolling Interests in the Operating Partnership | 7,199,904 | 75.5 | |||||||
Total Market Capitalization | $ | 9,533,670 | 100.0 | % |
(1) | In September, the Company completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with a delayed draw option required to be exercised by February 17, 2017. The table above does not reflect any amounts pertaining to these notes because there were no amounts drawn or outstanding as of December 31, 2016. |
(2) | There was no outstanding balance on the unsecured line of credit as of December 31, 2016. |
(3) | Represents gross aggregate principal amount due at maturity before the effect of the following at December 31, 2016: $11.5 million of unamortized deferred financing costs, $6.6 million of unamortized discounts for the unsecured senior notes and $4.4 million of unamortized premiums for the secured debt. |
(4) | In November 2016, the Company entered into a $170.0 million, 10-year mortgage note due in December 2026 with a fixed interest rate of 3.57%. |
(5) | Value based on $25.00 per share liquidation preference. |
(6) | Represents common units not owned by the Company. |
(7) | Value based on closing price per share of our common stock of $73.22 as of December 31, 2016. |
◦ | During the year ended December 31, 2016, we completed the sale of six office buildings and five undeveloped land parcels to unaffiliated third parties for gross sales proceeds totaling approximately $330.7 million. In addition, in January 2017 we completed the sale of the operating property that was held for sale at December 31, 2016 for total gross proceeds of $12.1 million. |
◦ | During the second half of 2016, we completed two strategic ventures with NBREM whereby NBREM contributed a total of $452.9 million for a 44% common equity interest in two existing previously |
◦ | In November 2016, the Operating Partnership entered into a ten-year, non-recourse mortgage note for $170.0 million. The mortgage note bears interest at a fixed rate of 3.57% and matures on December 1, 2026. A portion of the proceeds from this note were used to repay a a total of $64.4 million of secured debt at par. |
◦ | During 2016, we issued and sold a total of 451,398shares of our common stock under our at-the-market stock offering program at a weighted average price of $71.50per share before selling commissions. The net offering proceeds (after deducting selling commissions) were approximately $31.9 million(see “—Liquidity Sources” below for additional information). |
◦ | In September 2016, the Operating Partnership completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with a delayed draw option required to be exercised by February 17, 2017. No amounts were drawn or outstanding as of December 31, 2016. |
◦ | In January 2017, we raised approximately $308.8 million of net proceeds through a public offering of 4,427,500 shares of common stock. |
◦ | On January 13, 2017, the Company and the Operating Partnership paid a special cash dividend and distribution, as applicable, of $1.90 per share of common stock and common unit, as applicable, to stockholders and unitholders, as applicable, of record on December 30, 2016. This special cash dividend was in addition to the regular quarterly cash dividend of $0.375 per share of common stock. The total amount of the regular quarterly cash dividend and the special cash dividend was approximately $35.9 million and $181.6 million, respectively. |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Outstanding borrowings | $ | — | $ | — | |||
Remaining borrowing capacity | 600,000 | 600,000 | |||||
Total borrowing capacity (1) | $ | 600,000 | $ | 600,000 | |||
Interest rate (2) | 1.82 | % | 1.48 | % | |||
Facility fee-annual rate (3) | 0.200% | ||||||
Maturity date | July 2019 |
(1) | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility. |
(2) | Our unsecured revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.050%. |
(3) | Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of December 31, 2016 and 2015, $3.3 million and $4.6 million of deferred financing costs remained to be amortized through the amended maturity date of our unsecured revolving credit facility, which are included in prepaid expenses and other assets, net on our consolidated balance sheets. |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
(in millions, except share and per share data) | |||||||
Shares of common stock sold during the year | 451,398 | 1,866,267 | |||||
Weighted average price per share of common stock | $ | 71.50 | $ | 75.06 | |||
Aggregate gross proceeds | $ | 32.3 | $ | 140.1 | |||
Aggregate net proceeds after selling commissions | $ | 31.9 | $ | 138.2 |
Aggregate Principal Amount Outstanding (1)(2) | |||
(in thousands) | |||
Unsecured Term Loan Facility | $ | 150,000 | |
Unsecured Term Loan | 39,000 | ||
Unsecured Senior Notes due 2018 | 325,000 | ||
Unsecured Senior Notes due 2020 | 250,000 | ||
Unsecured Senior Notes due 2023 | 300,000 | ||
Unsecured Senior Notes due 2025 | 400,000 | ||
Unsecured Senior Notes due 2029 | 400,000 | ||
Secured Debt | 469,766 | ||
Total Unsecured and Secured Debt | 2,333,766 | ||
Less: Unamortized Net Discounts and Deferred Financing Costs | (13,643 | ) | |
Total Debt, Net | $ | 2,320,123 |
(1) | In September, the Company completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with a delayed draw option required to be exercised by February 17, 2017. The table above does not reflect any amounts pertaining to these notes because there were no amounts drawn or outstanding as of December 31, 2016. |
(2) | There was no outstanding balance on the unsecured line of credit as of December 31, 2016. |
Percentage of Total Debt (1) | Weighted Average Interest Rate (1) (2) | ||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||
Secured vs. unsecured: | |||||||||||
Unsecured (3) | 79.9 | % | 83.2 | % | 4.4 | % | 4.3 | % | |||
Secured | 20.1 | 16.8 | 4.4 | % | 5.1 | % | |||||
Variable-rate vs. fixed-rate: | |||||||||||
Variable-rate | 8.1 | 8.4 | 1.8 | % | 1.4 | % | |||||
Fixed-rate (3) | 91.9 | 91.6 | 4.6 | % | 4.7 | % | |||||
Stated rate (3) | 4.4 | % | 4.5 | % | |||||||
GAAP effective rate (4) | 4.3 | % | 4.4 | % | |||||||
GAAP effective rate including debt issuance costs | 4.5 | % | 4.6 | % |
(1) | In September, the Company completed a private placement of $175.0 million of ten-year, 3.35% unsecured senior notes and $75.0 million of twelve-year, 3.45% unsecured senior notes with a delayed draw option required to be exercised by February 17, 2017. The table above does not reflect any amounts pertaining to these notes because there were no amounts drawn or outstanding as of December 31, 2016. The table above also does not reflect any amounts pertaining to the unsecured line of credit as there were no amounts outstanding as of December 31, 2016. |
(2) | As of the end of the period presented. |
(3) | Excludes the impact of the amortization of any debt discounts/premiums and deferred financing costs. |
Payment Due by Period | |||||||||||||||||||
Less than 1 Year (2017) | 2-3 Years (2018-2019) | 4-5 Years (2020-2021) | More than 5 Years (After 2021) | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Principal payments: secured debt (1) | $ | 7,286 | $ | 202,978 | $ | 10,479 | $ | 249,023 | $ | 469,766 | |||||||||
Principal payments: unsecured debt (2) | — | 514,000 | 250,000 | 1,350,000 | 2,114,000 | ||||||||||||||
Interest payments: fixed-rate debt (3) | 105,663 | 177,455 | 135,337 | 302,302 | 720,757 | ||||||||||||||
Interest payments: variable-rate debt (4) | 3,495 | 5,228 | — | — | 8,723 | ||||||||||||||
Ground lease obligations (5) | 4,934 | 9,868 | 9,868 | 231,402 | 256,072 | ||||||||||||||
Lease and other contractual commitments (6) | 69,452 | 10,029 | — | 148 | 79,629 | ||||||||||||||
Development commitments (7) | 262,000 | 197,000 | — | — | 459,000 | ||||||||||||||
Total | $ | 452,830 | $ | 1,116,558 | $ | 405,684 | $ | 2,132,875 | $ | 4,107,947 |
(1) | Represents gross aggregate principal amount before the effect of the unamortized premium and deferred financing costs of approximately$4.4 millionand$1.4 millionas of December 31, 2016. |
(2) | Represents gross aggregate principal amount before the effect of the unamortized discount and deferred financing costs of approximately$6.6 millionand$10.1 million as of December 31, 2016. Includes $175.0 million of Series A Notes and $75.0 million of Series B Notes issuable pursuant to the Note Purchase Agreement for which no Series A or B Notes were issued and outstanding as of December 31, 2016 but the Company is committed to issuing by February 17, 2017. |
(3) | As of December 31, 2016,91.9%of our debt was contractually fixed. The information in the table above reflects our projected interest rate obligations for these fixed-rate payments based on the contractual interest rates on an accrual basis and scheduled maturity dates. Amounts include interest rate obligations for the Series A and B Notes issuable pursuant to the Note Purchase Agreement for which no Series A or B Notes were issued and outstanding as of December 31, 2016 but the Company is committed to issuing by February 17, 2017. |
(4) | As of December 31, 2016, 8.1%of our debt bore interest at variable rates which was incurred under the unsecured term loan facility and unsecured term loan. The variable interest rate payments are based on LIBOR plus a spread of 1.150%as of December 31, 2016. The information in the table above reflects our projected interest rate obligations for these variable-rate payments based on outstanding principal balances as of December 31, 2016, the scheduled interest payment dates and the contractual maturity dates. |
(5) | Reflects minimum lease payments through the contractual lease expiration date before the impact of extension options. See Note 18 “Commitment and Contingencies” to our consolidated financial statements included in this report for further information. |
(6) | Amounts represent commitments under signed leases and contracts for operating properties, excluding tenant-funded tenant improvements, and for other contractual commitments. The timing of these expenditures may fluctuate. |
(7) | Amounts represent commitments under signed leases for pre-leased development projects and contractual commitments for projects under construction, as of December 31, 2016, and also includes $45.0 million for three recently completed office projects, the project in “lease-up” and the completed residential project. The timing of these expenditures may fluctuate based on the ultimate progress of construction. We may start additional construction in 2017 (see “—Development Activities” for additional information). |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Office Properties:(1) | |||||||||||
Capital Expenditures: | |||||||||||
Capital expenditures per square foot | $ | 1.58 | $ | 1.23 | $ | 0.84 | |||||
Tenant Improvement and Leasing Costs (2) | |||||||||||
Replacement tenant square feet (3) | 583,461 | 797,560 | 741,573 | ||||||||
Tenant improvements per square foot commenced | $ | 40.98 | $ | 42.25 | $ | 39.06 | |||||
Leasing commissions per square foot commenced | $ | 14.30 | $ | 14.53 | $ | 11.42 | |||||
Total per square foot | $ | 55.28 | $ | 56.78 | $ | 50.48 | |||||
Renewal tenant square feet | 476,011 | 627,783 | 1,333,231 | ||||||||
Tenant improvements per square foot commenced | $ | 10.66 | $ | 18.44 | $ | 14.23 | |||||
Leasing commissions per square foot commenced | $ | 7.90 | $ | 9.36 | $ | 9.71 | |||||
Total per square foot | $ | 18.56 | $ | 27.80 | $ | 23.94 | |||||
Total per square foot per year | $ | 7.05 | $ | 7.34 | $ | 5.81 | |||||
Average remaining lease term (in years) | 5.5 | 6.0 | 5.8 |
(1) | Excludes development properties. |
(2) | Includes tenants with lease terms of 12 months or longer. Excludes leases for month-to-month and first generation tenants. |
(3) | Excludes leases for which the space was vacant for longer than one year, or vacant when the property was acquired by the Company. |
Unsecured Credit Facility, Unsecured Term Loan Facility and Unsecured Term Loan (as defined in the applicable Credit Agreements): | Covenant Level | Actual Performance as of December 31, | ||
Total debt to total asset value | less than 60% | |||
Fixed charge coverage ratio | greater than 1.5x | |||
Unsecured debt ratio | greater than 1.67x | |||
Unencumbered asset pool debt service coverage | greater than 1.75x | |||
Unsecured Senior Notes due (as defined in the applicable Indentures): | ||||
Total debt to total asset value | less than 60% | |||
Interest coverage | greater than 1.5x | |||
Secured debt to total asset value | less than 40% | |||
Unencumbered asset pool value to unsecured debt | greater than 150% |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | Dollar Change | Percentage Change | 2016 | 2015 | Dollar Change | Percentage Change | |||||||||||||||||||||
($ in thousands) | ($ in thousands) | |||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 245,253 | $ | 240,576 | $ | 4,677 | 1.9 | % | $ | 345,054 | $ | 272,008 | $ | 73,046 | 26.9 | % | ||||||||||||
Net cash used in investing activities | (501,436 | ) | (506,520 | ) | 5,084 | (1.0 | )% | (635,435 | ) | (262,752 | ) | (372,683 | ) | 141.8 | % | |||||||||||||
Net cash provided by financing activities | 244,587 | 284,621 | (40,034 | ) | (14.1 | )% | 427,291 | 23,471 | 403,820 | 1,720.5 | % | |||||||||||||||||
Net increase in cash and cash equivalents | $ | 136,910 | $ | 32,727 | $ | 104,183 | 318.3 | % |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 166,969 | $ | 30,630 | $ | 249,826 | $ | 50,819 | $ | 4,512 | $ | 280,538 | $ | 220,831 | $ | 166,969 | $ | 30,630 | $ | 249,826 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 3,589 | 685 | 6,187 | 1,474 | 178 | 6,635 | 4,339 | 3,589 | 685 | 6,187 | ||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 3,375 | 184 | — | — | — | |||||||||||||||||||||||||||||||||
Depreciation and amortization of real estate assets | 202,108 | 199,558 | 168,687 | 135,467 | 102,898 | 213,156 | 201,480 | 202,108 | 199,558 | 168,687 | ||||||||||||||||||||||||||||
Net gain on dispositions of discontinued operations | (121,922 | ) | (12,252 | ) | (259,245 | ) | (51,587 | ) | (949 | ) | ||||||||||||||||||||||||||||
Funds From Operations (1) | $ | 250,744 | $ | 218,621 | $ | 165,455 | $ | 136,173 | $ | 106,639 | ||||||||||||||||||||||||||||
Gains on sales of depreciable real estate | (164,302 | ) | (109,950 | ) | (121,922 | ) | (12,252 | ) | (259,245 | ) | ||||||||||||||||||||||||||||
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships | (5,660 | ) | (272 | ) | — | — | — | |||||||||||||||||||||||||||||||
Funds From Operations (1) (2) | $ | 333,742 | $ | 316,612 | $ | 250,744 | $ | 218,621 | $ | 165,455 |
(1) |
(2) | FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of $13.2 million, $13.3 million, $11.0 million, $10.7 million |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Weighted average shares of common stock outstanding | 83,090,235 | 77,343,853 | 69,639,623 | 56,717,121 | 49,497,487 | 92,342,483 | 89,854,096 | 83,090,235 | 77,343,853 | 69,639,623 | ||||||||||||||||||
Weighted average common units outstanding | 1,804,263 | 1,822,407 | 1,763,635 | 1,720,323 | 1,723,131 | 2,429,205 | 1,791,482 | 1,804,263 | 1,822,407 | 1,763,635 | ||||||||||||||||||
Effect of participating securities – nonvested shares and restricted stock units | 1,228,807 | 1,224,208 | 1,127,534 | 924,747 | 812,865 | 1,139,669 | 1,170,571 | 1,228,807 | 1,224,208 | 1,127,534 | ||||||||||||||||||
Total basic weighted average shares / units outstanding | 86,123,305 | 80,390,468 | 72,530,792 | 59,362,191 | 52,033,483 | 95,911,357 | 92,816,149 | 86,123,305 | 80,390,468 | 72,530,792 | ||||||||||||||||||
Effect of dilutive securities – Exchangeable Notes, stock options and contingently issuable shares | 1,877,485 | 1,765,025 | 1,123,482 | 187,134 | 15,708 | 680,551 | 541,679 | 1,877,485 | 1,765,025 | 1,123,482 | ||||||||||||||||||
Total diluted weighted average shares / units outstanding | 88,000,790 | 82,155,493 | 73,654,274 | 59,549,325 | 52,049,191 | 96,591,908 | 93,357,828 | 88,000,790 | 82,155,493 | 73,654,274 |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
Exhibit Number | Description | |
3.(i)1 | Kilroy Realty Corporation Articles of Restatement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2012) | |
3.(i)2 | Certificate of Limited Partnership of Kilroy Realty, L.P. (previously filed by Kilroy Realty, L.P., as an exhibit to the General Form for Registration of Securities on Form 10 as filed with the Securities and Exchange Commission on August 18, 2010) | |
3.(i)3 | Amendment to the Certificate of Limited Partnership of Kilroy Realty, L.P. (previously filed by Kilroy Realty, L.P., as an exhibit to the General Form for Registration of Securities on Form 10 as filed with the Securities and Exchange Commission on August 18, 2010) | |
3.(i)4 | Articles Supplementary designating Kilroy Realty Corporation’s 6.875% Series G Cumulative Redeemable Preferred Stock (previously filed by Kilroy Realty Corporation on Form 8-A as filed with the Securities and Exchange Commission on March 22, 2012) | |
3.(i)5 | Articles Supplementary designating Kilroy Realty Corporation’s 6.375% Series H Cumulative Redeemable Preferred Stock (previously filed by Kilroy Realty Corporation on Form 8-A as filed with the Securities and Exchange Commission on August 10, 2012) | |
3.(ii) |
Exhibit Number | Description | |
3.(ii) | Seventh Amended and Restated Agreement of Limited Partnership of Kilroy Realty, L.P. dated August 15, 2012, as amended (previously filed by Kilroy Realty Corporation on Form 10-Q for the quarter ended June 30, 2014) |
4.1 | Kilroy Realty Corporation Form of Certificate for Common Stock (previously filed by Kilroy Realty Corporation as an exhibit to the Registration Statement on Amendment No. 3 to Form S-11 (No. 333-15553)) | |
4.2 | Specimen Certificate for Kilroy Realty Corporation’s 6.875% Series G Cumulative Redeemable Preferred Stock (previously filed by Kilroy Realty Corporation on Form 8-A as filed with the Securities and Exchange Commission on March 22, 2012) | |
4.3 | Specimen Certificate for Kilroy Realty Corporation’s 6.375% Series H Cumulative Redeemable Preferred Stock (previously filed by Kilroy Realty Corporation on Form 8-A as filed with the Securities and Exchange Commission on August 10, 2012) | |
4.4 | Registration Rights Agreement, dated January 31, 1997 (previously filed by Kilroy Realty Corporation as an exhibit to the Registration Statement on Amendment No. 3 to Form S-11 (No. 333-15553)) | |
4.5 | ||
Form of Certificate for Partnership Units of Kilroy Realty, L.P. (previously filed by Kilroy Realty, L.P., as an exhibit to the General Form for Registration of Securities on Form 10 as filed with the Securities and Exchange Commission on August 18, 2010) | ||
Indenture, dated May 24, 2010, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee, including the form of 6.625% Senior Notes due 2020 and the form of the related guarantee (previously filed by Kilroy Realty Corporation as an exhibit on Form | ||
Officers’ Certificate pursuant to Sections 101, 201, 301 and 303 of the Indenture dated March 1, 2011, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee, establishing a series of securities entitled “4.800% Notes due 2018,” including the form of 4.800% Notes due 2018 and the form of related guarantee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on July 6, 2011) | ||
Registration Rights Agreement, dated July 31, 2012 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2012) | ||
Officers’ Certificate pursuant to Sections 101, 201, 301 and 303 of the Indenture dated March 1, 2011, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee, establishing a series of securities entitled “3.800% Notes due 2023,” including the form of 3.800% Notes due 2023 and the form of related guarantee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on January 14, 2013) |
Indenture, dated March 1, 2011, by and among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit to the Registration Statement on Form S-3 as filed with the Securities and Exchange Commission on October 2, 2013) | ||
Supplemental Indenture, dated July 5, 2011, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit to the Registration Statement on Form S-3 as filed with the Securities and Exchange Commission on October 2, 2013) | ||
Officers’ Certificate pursuant to Sections 102, 201, 301 and 303 of the Indenture dated March 1, 2011, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee, establishing a series of securities entitled “4.25% Senior Notes due 2029,” including the form of 4.25% Senior Notes due 2029 and the form of related guarantee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on August 6, 2014) |
Exhibit Number | Description | |
4.13 | Officers’ Certificate, dated September 16, 2015, pursuant to Sections 102, 201, 301 and 303 of the Indenture dated March 1, 2011, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee, establishing a series of securities entitled “4.375% Senior Notes due 2025,” including the form of 4.375% Senior Notes due 2025 and the form of related guarantee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on September 16, 2015) | |
4.14 | The Company is party to agreements in connection with long-term debt obligations, none of which individually exceeds ten percent of the total assets of the Company on a consolidated basis. Pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, the Company agrees to furnish copies of these agreements to the Commission upon request | |
10.1 | Pledge Agreement by and among Kilroy Realty, L.P., John B. Kilroy, Sr., John B. Kilroy, Jr. and Kilroy Industries (previously filed by Kilroy Realty Corporation as an exhibit to the Registration Statement on Amendment No. 3 to Form S-11 (No. 333-15553)) | |
10.2† | 1997 Stock Option and Incentive Plan of the Registrant and Kilroy Realty, L.P. (previously filed by Kilroy Realty Corporation as an exhibit to the Registration Statement on Amendment No. 3 to Form S-11 (No. 333-15553)) | |
10.3 | ||
License Agreement by and among the Registrant and the other persons named therein (previously filed by Kilroy Realty Corporation as an exhibit to the Registration Statement on Amendment No. 4 to Form S-11 (No. 333-15553)) | ||
Form of Restricted Stock Award Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on February 8, 2007) | ||
Kilroy Realty Corporation Stock Award Deferral Program (previously filed by Kilroy Realty Corporation as an exhibit to Form 8-K as filed with the Securities and Exchange Commission on January 2, 2008) | ||
Form of Indemnification Agreement of Kilroy Realty Corporation with certain officers and directors (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-K for the year ended December 31, 2009) | ||
Deed of Trust, Security Agreement and Fixture Filing, dated January 12, 2011, executed by Kilroy Realty 303, LLC (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on January 13, 2011) | ||
Guaranty, dated January 12, 2011, executed by Kilroy Realty, L.P. (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on January 13, 2011) | ||
Unsecured Indemnity Agreement, dated January 12, 2011, executed by Kilroy Realty 303, LLC (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8−K as filed with the Securities and Exchange Commission on January 13, 2011) | ||
Kilroy Realty Corporation Form of Stock Option Grant Notice and Stock Option Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on February 24, 2012) | ||
Amended and Restated Employment Agreement by and between Kilroy Realty Corporation, Kilroy Realty, L.P. and John B. Kilroy, Jr. (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on April 4, 2012) | ||
Noncompetition Agreement by and between Kilroy Realty Corporation, Kilroy Realty, L.P. and John B. Kilroy, Jr. (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on April 4, 2012) | ||
Term Loan Agreement, dated March 29, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on April 2, 2012) | ||
First Amendment to Term Loan Agreement, dated November 28, 2012 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-K for the year ended December 31, 2012) | ||
Promissory Note, dated June 28, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) | ||
Loan Agreement, dated June 28, 2012, by and between KR MML 12701, LLC and Massachusetts Mutual Life Insurance Company (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) |
Exhibit Number | Description | |
10.17 | Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing (Irvine) for 2211 Michelson Drive, Irvine, California, dated June 28, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) | |
Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing (Santa Monica) for 2100-2110 Colorado Avenue, Santa Monica, California, dated June 28, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) | ||
Recourse Guaranty Agreement, dated June 28, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) | ||
Environmental Indemnification Agreement, dated June 28, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) |
Kilroy Realty Corporation 2006 Incentive Award Plan Restricted Stock Unit Agreement by and between Kilroy Realty Corporation and Jeffrey C. Hawken, dated April 4, 2013 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2013) | ||
Kilroy Realty Corporation 2006 Incentive Award Plan Restricted Stock Unit Agreement by and between Kilroy Realty Corporation and John Kilroy, Jr., dated March 30, 2012 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2013) | ||
Form of Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2013) | ||
Form of Stock Award Deferral Program Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2013) | ||
Form of Performance-Vest Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2014) | ||
Form of Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2014) | ||
Form of Restricted Stock Unit Agreement for Non-Employee Members of the Board of Directors (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2014) | ||
Kilroy Realty 2006 Incentive Award Plan (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on May | ||
Amended and Restated Revolving Credit Agreement, dated June 23, 2014 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2014) | ||
Amended and Restated Guaranty, dated June 23, 2014 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2014) | ||
Term Loan Agreement, dated July 31, 2014 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended September 30, 2014) | ||
Guaranty, dated July 31, 2014 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended September 30, 2014) | ||
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and RBC Capital Markets, LLC (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) | ||
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and Jefferies LLC (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) | ||
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and KeyBanc Capital Markets Inc. (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) | ||
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and BNP Paribas Securities Corp. (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) |
Exhibit Number | Description | |
10.37 | Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and J.P. Morgan Securities LLC (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) | |
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and Barclays Capital Inc. (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) |
10.40† | Form of Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2015) | |
10.41† | Form of Restricted Stock Unit Agreement for Non-Employee Members of the Board of Directors (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2015) | |
10.42† | Amended and Restated Employment Agreement and Non-Competition Agreement by and between Kilroy Realty Corporation, Kilroy Realty, L.P. and Jeffrey C. Hawken effective as of December 31, 2015 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-K for the year ended December 31, 2015) | |
10.43† | Kilroy Realty Corporation Director Compensation Policy effective as of January 1, 2016 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-K for the year ended December 31, 2015) | |
10.44† | Kilroy Realty Corporation 2006 Incentive Award Plan Restricted Stock Unit Agreement by and between Kilroy Realty Corporation and Jeffrey C. Hawken, dated January 9, 2016 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2016) | |
10.45† | Amended and Restated Employment Agreement and Non-Competition Agreement by and between Kilroy Realty Corporation, Kilroy Realty, L.P. and Tyler H. Rose effective as of January 28, 2016 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2016) | |
10.46† | Amended and Restated Employment Agreement and Non-Competition Agreement by and between Kilroy Realty Corporation, Kilroy Realty, L.P. and Justin W. Smart effective as of January 28, 2016 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2016) | |
10.47 | Note Purchase Agreement dated September 14, 2016 (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on September 14, 2016) | |
10.48* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and RBC Capital Markets, LLC | |
10.49* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and Jefferies LLC | |
10.50* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and KeyBanc Capital Markets Inc. | |
10.51* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and BNP Paribas Securities Corp. | |
10.52* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and J.P. Morgan Securities LLC | |
10.53* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and Barclays Capital Inc. | |
10.54 | Form of Time Sharing Agreement of Kilroy Realty, L.P. (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended September 30, 2016) | |
10.55†* | Kilroy Realty Corporation 2007 Deferred Compensation Plan, as amended and restated effective January 1, 2017 | |
12.1* | Statement of Computation of Consolidated Ratio of Earnings to Fixed Charges and Consolidated Ratio of Earnings to Combined Fixed Charges and Preferred Dividends of Kilroy Realty Corporation |
Exhibit Number | Description | |
12.2* | Statement of Computation of Consolidated Ratio of Earnings to Fixed Charges of Kilroy Realty, L.P. | |
21.1* | List of Subsidiaries of Kilroy Realty Corporation | |
21.2* | List of Subsidiaries of Kilroy Realty, L.P. | |
23.1* | Consent of Deloitte & Touche LLP for Kilroy Realty Corporation | |
23.2* | Consent of Deloitte & Touche LLP for Kilroy Realty, L.P. | |
24.1* | Power of Attorney (included on the signature page of this Form 10-K) | |
31.1* | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of Kilroy Realty Corporation | |
31.2* | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Kilroy Realty Corporation | |
31.3* | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of Kilroy Realty, L.P. | |
31.4* | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Kilroy Realty, L.P. | |
32.1* | Section 1350 Certification of Chief Executive Officer of Kilroy Realty Corporation | |
32.2* | Section 1350 Certification of Chief Financial Officer of Kilroy Realty Corporation | |
32.3* | Section 1350 Certification of Chief Executive Officer of Kilroy Realty, L.P. | |
32.4* | Section 1350 Certification of Chief Financial Officer of Kilroy Realty, L.P. | |
101.1 | The following Kilroy Realty Corporation and Kilroy Realty, L.P. financial information for the year ended December 31, |
* | Filed herewith |
† | Management contract or compensatory plan or arrangement. |
(1) | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections. |
KILROY REALTY CORPORATION | |||
By | /s/ Heidi R. Roth | ||
Heidi R. Roth Executive Vice President, Chief Accounting Officer and Controller |
Name | Title | Date | |
/s/ John | Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer) | February | |
John | |||
/s/ Tyler H. Rose | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February | |
Tyler H. Rose | |||
/s/ Heidi R. Roth | Executive Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer) | February | |
Heidi R. Roth | |||
/s/ Edward F. Brennan, | Director | February | |
Edward F. Brennan, | |||
/s/ Jolie Hunt | Director | February 13, 2017 | |
Jolie Hunt | |||
/s/ Scott S. Ingraham | Director | February | |
Scott S. Ingraham | |||
/s/ Gary R. Stevenson | Director | February | |
Gary R. Stevenson | |||
/s/ Peter B. Stoneberg | Director | February | |
Peter B. Stoneberg |
KILROY REALTY, L.P. | |||
By | /s/ Heidi R. Roth | ||
Heidi R. Roth Executive Vice President, Chief Accounting Officer and Controller |
Name | Title | Date | |
/s/ John | Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer) | February | |
John | |||
/s/ Tyler H. Rose | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February | |
Tyler H. Rose | |||
/s/ Heidi R. Roth | Executive Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer) | February | |
Heidi R. Roth | |||
/s/ Edward F. Brennan, | Director | February | |
Edward F. Brennan, | |||
/s/ Jolie Hunt | Director | February 13, 2017 | |
Jolie Hunt | |||
/s/ Scott S. Ingraham | Director | February | |
Scott S. Ingraham | |||
/s/ Gary R. Stevenson | Director | February | |
Gary R. Stevenson | |||
/s/ Peter B. Stoneberg | Director | February | |
Peter B. Stoneberg |
Page | |
FINANCIAL STATEMENTS OF KILROY REALTY CORPORATION: | |
FINANCIAL STATEMENTS OF KILROY REALTY, L.P.: | |
December 31, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
REAL ESTATE ASSETS (Notes 3 and 18): | |||||||
Land and improvements | $ | 877,633 | $ | 657,491 | |||
Buildings and improvements | 4,059,639 | 3,590,699 | |||||
Undeveloped land and construction in progress | 1,120,660 | 1,016,757 | |||||
Total real estate held for investment | 6,057,932 | 5,264,947 | |||||
Accumulated depreciation and amortization | (947,664 | ) | (818,957 | ) | |||
Total real estate held for investment, net ($211,755 and $234,532 of VIE, Note 2) | 5,110,268 | 4,445,990 | |||||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET (Note 18) | 8,211 | 213,100 | |||||
CASH AND CASH EQUIVALENTS | 23,781 | 35,377 | |||||
RESTRICTED CASH (Note 18) | 75,185 | 49,780 | |||||
MARKETABLE SECURITIES (Notes 13 and 16) | 11,971 | 10,008 | |||||
CURRENT RECEIVABLES, NET (Note 5) | 7,229 | 10,743 | |||||
DEFERRED RENT RECEIVABLES, NET (Note 5) | 156,416 | 127,123 | |||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET (Notes 3 and 4) | 201,926 | 186,622 | |||||
DEFERRED FINANCING COSTS, NET (Notes 2 and 7) | 18,374 | 16,502 | |||||
PREPAID EXPENSES AND OTHER ASSETS, NET | 20,375 | 15,783 | |||||
TOTAL ASSETS | $ | 5,633,736 | $ | 5,111,028 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES: | |||||||
Secured debt (Notes 3, 6, 7 and 16) | $ | 546,292 | $ | 560,434 | |||
Exchangeable senior notes, net (Notes 6, 7 and 16) | — | 168,372 | |||||
Unsecured debt, net (Notes 6, 7 and 16) | 1,783,121 | 1,431,132 | |||||
Unsecured line of credit (Notes 6, 7 and 16) | 140,000 | 45,000 | |||||
Accounts payable, accrued expenses and other liabilities (Note 15) | 225,830 | 198,467 | |||||
Accrued distributions (Note 10) | 32,899 | 31,490 | |||||
Deferred revenue and acquisition-related intangible liabilities, net (Notes 3, 4 and 8) | 132,239 | 101,286 | |||||
Rents received in advance and tenant security deposits | 49,363 | 44,240 | |||||
Liabilities and deferred revenue of real estate assets held for sale (Note 18) | 56 | 14,447 | |||||
Total liabilities | 2,909,800 | 2,594,868 | |||||
COMMITMENTS AND CONTINGENCIES (Note 15) | |||||||
EQUITY (Notes 9 and 10): | |||||||
Stockholders’ Equity: | |||||||
Preferred Stock, $.01 par value, 30,000,000 shares authorized, | |||||||
6.875% Series G Cumulative Redeemable Preferred stock, $.01 par value, 4,600,000 shares authorized, 4,000,000 shares issued and outstanding ($100,000 liquidation preference) | 96,155 | 96,155 | |||||
6.375% Series H Cumulative Redeemable Preferred stock, $.01 par value, 4,000,000 shares authorized, issued and outstanding ($100,000 liquidation preference) | 96,256 | 96,256 | |||||
Common stock, $.01 par value, 150,000,000 shares authorized, 86,259,684 and 82,153,944 shares issued and outstanding, respectively | 863 | 822 | |||||
Additional paid-in capital | 2,635,900 | 2,478,975 | |||||
Distributions in excess of earnings | (162,964 | ) | (210,896 | ) | |||
Total stockholders’ equity | 2,666,210 | 2,461,312 | |||||
Noncontrolling Interests: | |||||||
Common units of the Operating Partnership | 51,864 | 49,963 | |||||
Noncontrolling interest in consolidated subsidiary (Notes 2, 3, and 9) | 5,862 | 4,885 | |||||
Total noncontrolling interests | 57,726 | 54,848 | |||||
Total equity | 2,723,936 | 2,516,160 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 5,633,736 | $ | 5,111,028 |
December 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
REAL ESTATE ASSETS (Notes 2, 3 and 4): | |||||||
Land and improvements | $ | 1,108,971 | $ | 875,794 | |||
Buildings and improvements | 4,938,250 | 4,091,012 | |||||
Undeveloped land and construction in progress | 1,013,533 | 1,361,340 | |||||
Total real estate assets held for investment | 7,060,754 | 6,328,146 | |||||
Accumulated depreciation and amortization | (1,139,853 | ) | (994,241 | ) | |||
Total real estate assets held for investment, net | 5,920,901 | 5,333,905 | |||||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET (Note 4) | 9,417 | 117,666 | |||||
CASH AND CASH EQUIVALENTS (Notes 4 and 11) | 193,418 | 56,508 | |||||
RESTRICTED CASH (Note 4) | 56,711 | 696 | |||||
MARKETABLE SECURITIES (Notes 16 and 19) | 14,773 | 12,882 | |||||
CURRENT RECEIVABLES, NET (Note 6) | 13,460 | 11,153 | |||||
DEFERRED RENT RECEIVABLES, NET (Note 6) | 218,977 | 189,704 | |||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET (Notes 3 and 5) | 208,368 | 176,683 | |||||
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 7) | 70,608 | 27,233 | |||||
TOTAL ASSETS | $ | 6,706,633 | $ | 5,926,430 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES: | |||||||
Secured debt, net (Notes 8, 9 and 19) | $ | 472,772 | $ | 380,835 | |||
Unsecured debt, net (Notes 8, 9 and 19) | 1,847,351 | 1,844,634 | |||||
Accounts payable, accrued expenses and other liabilities (Note 18) | 202,391 | 246,323 | |||||
Accrued dividends and distributions (Notes 13 and 29) | 222,306 | 34,992 | |||||
Deferred revenue and acquisition-related intangible liabilities, net (Notes 3, 5 and 10) | 150,360 | 128,156 | |||||
Rents received in advance and tenant security deposits | 52,080 | 49,361 | |||||
Liabilities and deferred revenue of real estate assets held for sale (Note 4) | 56 | 7,543 | |||||
Total liabilities | 2,947,316 | 2,691,844 | |||||
COMMITMENTS AND CONTINGENCIES (Note 18) | |||||||
EQUITY (Notes 11 and 13): | |||||||
Stockholders’ Equity: | |||||||
Preferred Stock, $.01 par value, 30,000,000 shares authorized, | |||||||
6.875% Series G Cumulative Redeemable Preferred stock, $.01 par value, 4,600,000 shares authorized, 4,000,000 shares issued and outstanding ($100,000 liquidation preference) | 96,155 | 96,155 | |||||
6.375% Series H Cumulative Redeemable Preferred stock, $.01 par value, 4,000,000 shares authorized, issued and outstanding ($100,000 liquidation preference) | 96,256 | 96,256 | |||||
Common stock, $.01 par value, 150,000,000 shares authorized, 93,219,439 and 92,258,690 shares issued and outstanding, respectively | 932 | 923 | |||||
Additional paid-in capital | 3,457,649 | 3,047,894 | |||||
Distributions in excess of earnings | (107,997 | ) | (70,262 | ) | |||
Total stockholders’ equity | 3,542,995 | 3,170,966 | |||||
Noncontrolling Interests: | |||||||
Common units of the Operating Partnership (Note 11) | 85,590 | 57,100 | |||||
Noncontrolling interests in consolidated property partnerships (Notes 2 and 11) | 130,732 | 6,520 | |||||
Total noncontrolling interests | 216,322 | 63,620 | |||||
Total equity | 3,759,317 | 3,234,586 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 6,706,633 | $ | 5,926,430 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
REVENUES: | |||||||||||
Rental income | $ | 466,328 | $ | 411,899 | $ | 342,164 | |||||
Tenant reimbursements | 46,717 | 38,047 | 29,667 | ||||||||
Other property income (Notes 15 and 17) | 8,680 | 7,165 | 1,487 | ||||||||
Total revenues | 521,725 | 457,111 | 373,318 | ||||||||
EXPENSES: | |||||||||||
Property expenses | 100,514 | 94,115 | 73,998 | ||||||||
Real estate taxes | 45,197 | 39,417 | 31,562 | ||||||||
Provision for bad debts | 58 | 396 | 153 | ||||||||
Ground leases (Note 4 and 15) | 3,075 | 3,504 | 3,168 | ||||||||
General and administrative expenses | 46,152 | 39,660 | 36,188 | ||||||||
Acquisition-related expenses | 1,479 | 1,962 | 4,937 | ||||||||
Depreciation and amortization (Notes 2 and 4) | 202,417 | 188,887 | 150,521 | ||||||||
Total expenses | 398,892 | 367,941 | 300,527 | ||||||||
OTHER (EXPENSES) INCOME: | |||||||||||
Interest income and other net investment gains (Note 16) | 561 | 1,635 | 848 | ||||||||
Interest expense (Note 7) | (67,571 | ) | (75,870 | ) | (79,114 | ) | |||||
Total other (expenses) income | (67,010 | ) | (74,235 | ) | (78,266 | ) | |||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF LAND | 55,823 | 14,935 | (5,475 | ) | |||||||
Gain on sale of land (Note 18) | 3,490 | — | — | ||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 59,313 | 14,935 | (5,475 | ) | |||||||
DISCONTINUED OPERATIONS (Note 18) | |||||||||||
Income from discontinued operations | 2,573 | 17,378 | 23,331 | ||||||||
Net gain on dispositions of discontinued operations | 121,922 | 12,252 | 259,245 | ||||||||
Total income from discontinued operations | 124,495 | 29,630 | 282,576 | ||||||||
NET INCOME | 183,808 | 44,565 | 277,101 | ||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | (3,589 | ) | (685 | ) | (6,187 | ) | |||||
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION | 180,219 | 43,880 | 270,914 | ||||||||
PREFERRED DISTRIBUTIONS AND DIVIDENDS: | |||||||||||
Preferred dividends (Note 10) | (13,250 | ) | (13,250 | ) | (10,567 | ) | |||||
Distributions to noncontrolling cumulative redeemable preferred units of the Operating Partnership (Note 9) | — | — | (3,541 | ) | |||||||
Original issuance costs of redeemed preferred stock and preferred units (Notes 9 and 10) | — | — | (6,980 | ) | |||||||
Total preferred distributions and dividends | (13,250 | ) | (13,250 | ) | (21,088 | ) | |||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 166,969 | $ | 30,630 | $ | 249,826 | |||||
Income (loss) from continuing operations available to common stockholders per share of common stock – basic (Note 19) | $ | 0.52 | $ | 0.00 | $ | (0.40 | ) | ||||
Income (loss) from continuing operations available to common stockholders per share of common stock – diluted (Note 19) | $ | 0.51 | $ | 0.00 | $ | (0.40 | ) | ||||
Net income available to common stockholders per share – basic (Note 19) | $ | 1.99 | $ | 0.37 | $ | 3.56 | |||||
Net income available to common stockholders per share – diluted (Note 19) | $ | 1.95 | $ | 0.37 | $ | 3.56 | |||||
Weighted average shares of common stock outstanding – basic (Note 19) | 83,090,235 | 77,343,853 | 69,639,623 | ||||||||
Weighted average shares of common stock outstanding – diluted (Note 19) | 84,967,720 | 77,343,853 | 69,639,623 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
REVENUES: | |||||||||||
Rental income | $ | 574,413 | $ | 525,355 | $ | 466,328 | |||||
Tenant reimbursements | 61,079 | 53,774 | 46,717 | ||||||||
Other property income (Notes 18 and 20) | 7,080 | 2,146 | 8,680 | ||||||||
Total revenues | 642,572 | 581,275 | 521,725 | ||||||||
EXPENSES: | |||||||||||
Property expenses | 113,932 | 105,378 | 100,514 | ||||||||
Real estate taxes | 55,206 | 50,223 | 45,197 | ||||||||
Provision for bad debts | — | 545 | 58 | ||||||||
Ground leases (Notes 5 and 18) | 3,439 | 3,096 | 3,075 | ||||||||
General and administrative expenses | 57,029 | 48,265 | 46,152 | ||||||||
Acquisition-related expenses | 1,902 | 497 | 1,479 | ||||||||
Depreciation and amortization (Notes 2 and 5) | 217,234 | 204,294 | 202,417 | ||||||||
Total expenses | 448,742 | 412,298 | 398,892 | ||||||||
OTHER (EXPENSES) INCOME: | |||||||||||
Interest income and other net investment gains (losses) (Note 19) | 1,764 | 243 | 561 | ||||||||
Interest expense (Note 9) | (55,803 | ) | (57,682 | ) | (67,571 | ) | |||||
Total other (expenses) income | (54,039 | ) | (57,439 | ) | (67,010 | ) | |||||
INCOME FROM CONTINUING OPERATIONS BEFORE GAINS ON SALES OF REAL ESTATE | 139,791 | 111,538 | 55,823 | ||||||||
Net (loss) gain on sales of land (Note 4) | (295 | ) | 17,116 | 3,490 | |||||||
Gains on sales of depreciable operating properties (Note 4) | 164,302 | 109,950 | — | ||||||||
INCOME FROM CONTINUING OPERATIONS | 303,798 | 238,604 | 59,313 | ||||||||
DISCONTINUED OPERATIONS (Note 21) | |||||||||||
Income from discontinued operations | — | — | 2,573 | ||||||||
Net gain on dispositions of discontinued operations | — | — | 121,922 | ||||||||
Total income from discontinued operations | — | — | 124,495 | ||||||||
NET INCOME | 303,798 | 238,604 | 183,808 | ||||||||
Net income attributable to noncontrolling common units of the Operating Partnership (Notes 2 and 11) | (6,635 | ) | (4,339 | ) | (3,589 | ) | |||||
Net income attributable to noncontrolling interests in consolidated property partnerships (Notes 2 and 11) | (3,375 | ) | (184 | ) | — | ||||||
Total income attributable to noncontrolling interests | (10,010 | ) | (4,523 | ) | (3,589 | ) | |||||
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION | 293,788 | 234,081 | 180,219 | ||||||||
PREFERRED DIVIDENDS (NOTE 13) | (13,250 | ) | (13,250 | ) | (13,250 | ) | |||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 280,538 | $ | 220,831 | $ | 166,969 | |||||
Income from continuing operations available to common stockholders per share of common stock – basic (Note 22) | $ | 3.00 | $ | 2.44 | $ | 0.52 | |||||
Income from continuing operations available to common stockholders per share of common stock – diluted (Note 22) | $ | 2.97 | $ | 2.42 | $ | 0.51 | |||||
Net income available to common stockholders per share – basic (Note 22) | $ | 3.00 | $ | 2.44 | $ | 1.99 | |||||
Net income available to common stockholders per share – diluted (Note 22) | $ | 2.97 | $ | 2.42 | $ | 1.95 | |||||
Weighted average shares of common stock outstanding – basic (Note 22) | 92,342,483 | 89,854,096 | 83,090,235 | ||||||||
Weighted average shares of common stock outstanding – diluted (Note 22) | 93,023,034 | 90,395,775 | 84,967,720 |
Preferred Stock | Common Stock | Total Stock- holders’ Equity | Noncontrolling Interests | Total Equity | Preferred Stock | Common Stock | Total Stock- holders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Common Stock | Additional Paid-in Capital | Distributions in Excess of Earnings | Number of Shares | Common Stock | Additional Paid-in Capital | Distributions in Excess of Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2011 | $ | 121,582 | 58,819,717 | $ | 588 | $ | 1,448,997 | $ | (277,450 | ) | $ | 1,293,717 | $ | 33,765 | $ | 1,327,482 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | 270,914 | 270,914 | 6,187 | 277,101 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series G and Series H Preferred Stock | 192,411 | 192,411 | 192,411 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of Series E and Series F Preferred Stock | (121,582 | ) | (4,918 | ) | (126,500 | ) | (126,500 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of Series A Preferred Units | (2,062 | ) | (2,062 | ) | (2,062 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | 16,024,618 | 161 | 671,941 | 672,102 | 672,102 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 62,137 | 1,291 | 1,291 | 1,291 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncash amortization of share-based compensation | 8,537 | 8,537 | 8,537 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock and restricted stock units | (22,312 | ) | (877 | ) | (877 | ) | (877 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 27,821 | (784 | ) | (784 | ) | (784 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 5,000 | 129 | 129 | 129 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common units in connection with an operating property acquisition | 5,604 | 5,604 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of common units of the Operating Partnership | 10,000 | 231 | 231 | (231 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest in the Operating Partnership | (3,460 | ) | (3,460 | ) | 3,460 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends and distributions | (14,108 | ) | (14,108 | ) | (14,108 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared per share of common stock and common unit ($1.40 per share/unit) | (101,911 | ) | (101,911 | ) | (2,482 | ) | (104,393 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2012 | 192,411 | 74,926,981 | 749 | 2,126,005 | (129,535 | ) | 2,189,630 | 46,303 | 2,235,933 | |||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2013 | $ | 192,411 | 82,153,944 | $ | 822 | $ | 2,478,975 | $ | (210,896 | ) | $ | 2,461,312 | $ | 54,848 | $ | 2,516,160 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | 43,880 | 43,880 | 685 | 44,565 | 180,219 | 180,219 | 3,589 | 183,808 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | 7,215,838 | 72 | 349,879 | 349,951 | 349,951 | 1,950,599 | 20 | 123,840 | 123,860 | 123,860 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 1,448 | 1,448 | 1,448 | — | 1,692 | 1,692 | 1,692 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncash amortization of share-based compensation | 9,563 | 9,563 | 9,563 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation | 14,471 | 14,471 | 14,471 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 495,000 | 5 | 21,087 | 21,092 | 21,092 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock and restricted stock units | (42,896 | ) | (2,521 | ) | (2,521 | ) | (2,521 | ) | (58,045 | ) | (3,533 | ) | (3,533 | ) | (3,533 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 37,245 | 1 | — | 1 | 1 | 141,205 | — | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 473 | 128 | 128 | 128 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares of common stock issued in connection with settlement of 4.25% Exchangeable Senior Notes | 2,091,323 | 21 | 202 | 223 | 223 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares of common stock received in connection with capped call option transactions | (515,342 | ) | (5 | ) | 5 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of common units of the Operating Partnership | 16,303 | 450 | 450 | (450 | ) | — | 1,000 | 28 | 28 | (28 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest in the Operating Partnership | (5,977 | ) | (5,977 | ) | 5,977 | — | (866 | ) | (866 | ) | 866 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Contribution by noncontrolling interest in consolidated subsidiary | 4,885 | 4,885 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution by noncontrolling interest in consolidated property partnership | 977 | 977 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends and distributions | (13,250 | ) | (13,250 | ) | (13,250 | ) | (13,250 | ) | (13,250 | ) | (13,250 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared per share of common stock and common unit ($1.40 per share/unit) | (111,991 | ) | (111,991 | ) | (2,552 | ) | (114,543 | ) | (119,037 | ) | (119,037 | ) | (2,526 | ) | (121,563 | ) | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2013 | 192,411 | 82,153,944 | 822 | 2,478,975 | (210,896 | ) | 2,461,312 | 54,848 | 2,516,160 | |||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2014 | 192,411 | 86,259,684 | 863 | 2,635,900 | (162,964 | ) | 2,666,210 | 57,726 | 2,723,936 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 180,219 | 180,219 | 3,589 | 183,808 | 234,081 | 234,081 | 4,523 | 238,604 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock (Note 10) | 1,950,599 | 20 | 123,840 | 123,860 | 123,860 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards (Note 12) | 1,692 | 1,692 | 1,692 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncash amortization of share-based compensation (Note 12) | 14,471 | 14,471 | 14,471 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options (Note 12) | 495,000 | 5 | 21,087 | 21,092 | 21,092 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock, stock options and restricted stock units (Note 12) | (58,045 | ) | (3,533 | ) | (3,533 | ) | (3,533 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock ( Note 12) | 141,205 | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued in connection with settlement of 4.25% Exchangeable Senior Notes (Note 7) | 2,091,323 | 21 | 202 | 223 | 223 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares received in connection with capped call option transactions (Note 7) | (515,342 | ) | (5 | ) | 5 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | 5,640,033 | 56 | 387,342 | 387,398 | 387,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 1,692 | 1,692 | 1,692 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation | 18,869 | 18,869 | 18,869 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 342,000 | 4 | 14,569 | 14,573 | 14,573 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock, stock options and restricted stock units | (101,389 | ) | (7,081 | ) | (7,081 | ) | (7,081 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 78,937 | — | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of common units of the Operating Partnership | 1,000 | 28 | 28 | (28 | ) | — | 39,425 | 1,223 | 1,223 | (1,223 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest in the Operating Partnership | (4,619 | ) | (4,619 | ) | 4,619 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution by noncontrolling interest in consolidated property partnership | 474 | 474 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends and distributions | (13,250 | ) | (13,250 | ) | (13,250 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared per share of common stock and common unit ($1.40 per share/unit) | (128,129 | ) | (128,129 | ) | (2,499 | ) | (130,628 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2015 | 192,411 | 92,258,690 | 923 | 3,047,894 | (70,262 | ) | 3,170,966 | 63,620 | 3,234,586 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 293,788 | 293,788 | 10,010 | 303,798 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock (Note 13) | 451,398 | 4 | 31,113 | 31,117 | 31,117 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards (Note 15) | 1,827 | 1,827 | 1,827 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation (Note 15) | 26,624 | 26,624 | 26,624 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options (Note 15) | 286,500 | 3 | 12,205 | 12,208 | 12,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock, stock options and restricted stock units (Note 15) | (137,126 | ) | (1 | ) | (8,874 | ) | (8,875 | ) | (8,875 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock (Note 15) | 109,044 | 1 | (1 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common units in connection with acquisition (Note 3) | 48,033 | 48,033 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of common units of the Operating Partnership | 250,933 | 2 | 8,891 | 8,893 | (8,893 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial contributions from noncontrolling interest in consolidated property partnership, net of transaction costs (Note 11) | 328,997 | 328,997 | 124,452 | 453,449 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (3,615 | ) | (3,615 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest in the Operating Partnership (Note 2) | (866 | ) | (866 | ) | 866 | — | 8,973 | 8,973 | (8,973 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Contribution by noncontrolling interest in consolidated subsidiary (Note 2) | 977 | 977 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends | (13,250 | ) | (13,250 | ) | (13,250 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared per share of common stock and common unit ($1.40 per share/unit) | (119,037 | ) | (119,037 | ) | (2,526 | ) | (121,563 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2014 | $ | 192,411 | 86,259,684 | $ | 863 | $ | 2,635,900 | $ | (162,964 | ) | $ | 2,666,210 | $ | 57,726 | $ | 2,723,936 | ||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends and distributions | (13,250 | ) | (13,250 | ) | (13,250 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared per share of common stock and common unit ($3.375 per share/unit) (Notes 13 and 29) | (318,273 | ) | (318,273 | ) | (8,312 | ) | (326,585 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2016 | $ | 192,411 | 93,219,439 | $ | 932 | $ | 3,457,649 | $ | (107,997 | ) | $ | 3,542,995 | $ | 216,322 | $ | 3,759,317 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 183,808 | $ | 44,565 | $ | 277,101 | |||||
Adjustments to reconcile net income to net cash provided by operating activities (including discontinued operations): | |||||||||||
Depreciation and amortization of buildings and improvements and leasing costs | 202,108 | 199,558 | 168,687 | ||||||||
Increase (decrease) in provision for bad debts | 58 | 396 | (42 | ) | |||||||
Depreciation of furniture, fixtures and equipment | 2,370 | 1,929 | 1,213 | ||||||||
Noncash amortization of share-based compensation awards (Note 12) | 12,095 | 8,616 | 7,670 | ||||||||
Noncash amortization of deferred financing costs and debt discounts and premiums | 4,315 | 5,315 | 8,433 | ||||||||
Noncash amortization of net below market rents (Note 4) | (8,328 | ) | (7,777 | ) | (6,699 | ) | |||||
Net gain on dispositions of discontinued operations (Note 18) | (121,922 | ) | (12,252 | ) | (259,245 | ) | |||||
Gain on sale of land (Note 18) | (3,490 | ) | — | — | |||||||
Noncash amortization of deferred revenue related to tenant-funded tenant improvements (Note 8) | (10,979 | ) | (10,713 | ) | (9,136 | ) | |||||
Straight-line rents | (31,782 | ) | (24,135 | ) | (21,530 | ) | |||||
Net change in other operating assets | 367 | (4,615 | ) | (1,297 | ) | ||||||
Net change in other operating liabilities | 16,633 | 40,137 | 17,320 | ||||||||
Insurance proceeds received for property damage and other, net | — | (448 | ) | (1,751 | ) | ||||||
Net cash provided by operating activities | 245,253 | 240,576 | 180,724 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Expenditures for acquisitions of operating properties, net of cash acquired (Note 3) | (204,546 | ) | (202,682 | ) | (454,841 | ) | |||||
Expenditures for acquisitions of development and redevelopment properties (Note 3) | (147,182 | ) | (102,769 | ) | (333,942 | ) | |||||
Expenditures for operating properties | (132,080 | ) | (129,873 | ) | (86,377 | ) | |||||
Expenditures for development and redevelopment properties and undeveloped land | (417,784 | ) | (320,141 | ) | (83,310 | ) | |||||
Net proceeds received from dispositions of operating properties and land (Note 18) | 427,544 | 21,178 | 263,572 | ||||||||
Insurance proceeds received for property damage | — | 448 | 1,751 | ||||||||
(Increase) decrease in acquisition-related deposits | (1,983 | ) | (2,596 | ) | 5,000 | ||||||
(Increase) decrease in restricted cash (Note 18) | (25,405 | ) | 229,915 | (18,359 | ) | ||||||
Net cash used in investing activities | (501,436 | ) | (506,520 | ) | (706,506 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net proceeds from issuance of common stock (Note 10) | 102,229 | 349,951 | 672,102 | ||||||||
Borrowings on unsecured line of credit | 505,000 | 55,000 | 704,000 | ||||||||
Repayments on unsecured line of credit | (410,000 | ) | (195,000 | ) | (701,000 | ) | |||||
Proceeds from the issuance of unsecured debt (Note 7) | 395,528 | 299,901 | 150,000 | ||||||||
Repayments of exchangeable senior notes (Note 7) | (172,500 | ) | — | (148,000 | ) | ||||||
Principal payments on secured debt | (9,845 | ) | (93,688 | ) | (106,262 | ) | |||||
Borrowings on unsecured debt (Note 7) | 39,000 | — | — | ||||||||
Repayments of unsecured debt (Note 7) | (83,000 | ) | — | — | |||||||
Net proceeds from issuance of Series G and Series H preferred stock | — | — | 192,411 | ||||||||
Redemption of Series E and Series F preferred stock | — | — | (126,500 | ) | |||||||
Redemption of Series A preferred units | — | — | (75,000 | ) | |||||||
Proceeds from the issuance of secured debt | — | — | 97,000 | ||||||||
Financing costs | (8,648 | ) | (4,384 | ) | (7,963 | ) | |||||
Repurchase of common stock and restricted stock units | (3,533 | ) | (2,520 | ) | (1,661 | ) | |||||
Proceeds from exercise of stock options | 21,092 | 128 | 129 | ||||||||
Contributions from noncontrolling interests in consolidated subsidiary | 977 | — | — | ||||||||
Dividends and distributions paid to common stockholders and common unitholders | (118,463 | ) | (111,517 | ) | (97,386 | ) | |||||
Dividends and distributions paid to preferred stockholders and preferred unitholders | (13,250 | ) | (13,250 | ) | (14,165 | ) | |||||
Net cash provided by financing activities | 244,587 | 284,621 | 537,705 | ||||||||
Net (decrease) increase in cash and cash equivalents | (11,596 | ) | 18,677 | 11,923 | |||||||
Cash and cash equivalents, beginning of year | 35,377 | 16,700 | 4,777 | ||||||||
Cash and cash equivalents, end of year | $ | 23,781 | $ | 35,377 | $ | 16,700 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||||||
Cash paid for interest, net of capitalized interest of $44,385, $32,742, and $17,657 as of December 31, 2014, 2013 and 2012, respectively | $ | 58,944 | $ | 65,157 | $ | 71,633 | |||||
NONCASH INVESTING TRANSACTIONS: | |||||||||||
Accrual for expenditures for operating properties and development and redevelopment properties | $ | 77,091 | $ | 73,482 | $ | 54,198 | |||||
Tenant improvements funded directly by tenants | $ | 42,906 | $ | 7,633 | $ | 17,719 | |||||
Assumption of secured debt in connection with property acquisitions (Notes 3 and 7) | $ | — | $ | 95,496 | $ | 221,032 | |||||
Assumption of other assets and liabilities in connection with operating and development property acquisitions, net (Note 3) | $ | 14,917 | $ | 1,811 | $ | 37,535 | |||||
Contribution of land, net of related liabilities, by noncontrolling interest to consolidated subsidiary (Note 3) | $ | — | $ | 4,885 | $ | — | |||||
NONCASH FINANCING TRANSACTIONS: | |||||||||||
Accrual of dividends and distributions payable to common stockholders and common unitholders (Note 10) | $ | 31,243 | $ | 29,378 | $ | 26,863 | |||||
Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders (Note 10) | $ | 1,656 | $ | 1,694 | $ | 1,694 | |||||
Grant date fair value of share-based compensation awards (Note 12) | $ | 20,739 | $ | 10,721 | $ | 31,396 | |||||
Issuance of common shares in connection with a development property acquisition (Notes 3 and 10) | $ | 21,631 | $ | — | $ | — | |||||
Issuance of common units in the Operating Partnership in connection with an operating property acquisition (Note 3) | $ | — | $ | — | $ | 5,604 | |||||
Exchange of common units of the Operating Partnership into shares of the Company’s common stock (Note 10) | $ | 28 | $ | 450 | $ | 231 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 303,798 | $ | 238,604 | $ | 183,808 | |||||
Adjustments to reconcile net income to net cash provided by operating activities (including discontinued operations): | |||||||||||
Depreciation and amortization of real estate assets and leasing costs | 213,156 | 201,482 | 202,108 | ||||||||
Depreciation of non-real estate furniture, fixtures and equipment | 4,078 | 2,812 | 2,370 | ||||||||
Increase in provision for bad debts | — | 545 | 58 | ||||||||
Non-cash amortization of share-based compensation awards (Note 15) | 21,064 | 15,537 | 12,095 | ||||||||
Non-cash amortization of deferred financing costs and debt discounts and premiums | 2,720 | 1,853 | 4,315 | ||||||||
Non-cash amortization of net below market rents (Note 5) | (7,166 | ) | (8,449 | ) | (8,328 | ) | |||||
Gains on sales of depreciable operating properties (Note 4) | (164,302 | ) | (109,950 | ) | — | ||||||
Gains on sales of discontinued operations (Note 21) | — | — | (121,922 | ) | |||||||
Loss (gain) on sales of land (Note 4) | 295 | (17,116 | ) | (3,490 | ) | ||||||
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements (Note 10) | (13,244 | ) | (13,338 | ) | (10,979 | ) | |||||
Straight-line rents | (29,629 | ) | (44,383 | ) | (31,782 | ) | |||||
Net change in other operating assets | (5,214 | ) | (8,085 | ) | 367 | ||||||
Net change in other operating liabilities | 19,498 | 12,496 | 16,633 | ||||||||
Net cash provided by operating activities | 345,054 | 272,008 | 245,253 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Expenditures for development properties and undeveloped land | (351,012 | ) | (407,969 | ) | (417,784 | ) | |||||
Expenditures for acquisitions of development properties and undeveloped land (Note 3) | (33,513 | ) | (139,073 | ) | (147,182 | ) | |||||
Expenditures for acquisitions of operating properties (Note 3) | (393,767 | ) | — | (204,546 | ) | ||||||
Expenditures for operating properties and other capital assets | (111,961 | ) | (99,557 | ) | (132,080 | ) | |||||
Net proceeds received from dispositions (Notes 4 and 21) | 325,031 | 319,639 | 427,544 | ||||||||
(Increase) decrease in restricted cash (Note 4) | (56,015 | ) | 65,210 | (25,405 | ) | ||||||
Issuance of notes receivable (Note 7) | (16,100 | ) | (3,000 | ) | — | ||||||
Decrease (increase) in acquisition-related deposits | 1,902 | 1,998 | (1,983 | ) | |||||||
Net cash used in investing activities | (635,435 | ) | (262,752 | ) | (501,436 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings on unsecured revolving credit facility | 305,000 | 250,000 | 505,000 | ||||||||
Repayments on unsecured revolving credit facility | (305,000 | ) | (390,000 | ) | (410,000 | ) | |||||
Proceeds from the issuance of secured debt (Note 9) | 170,000 | — | — | ||||||||
Principal payments and repayments of secured debt (Note 9) | (74,140 | ) | (159,766 | ) | (9,845 | ) | |||||
Net proceeds from the issuance of unsecured debt (Note 9) | — | 397,776 | 395,528 | ||||||||
Repayments of unsecured debt (Note 9) | — | (325,000 | ) | (83,000 | ) | ||||||
Repayments of exchangeable senior notes (Note 9) | — | — | (172,500 | ) | |||||||
Borrowings on unsecured debt (Note 9) | — | — | 39,000 | ||||||||
Financing costs | (2,159 | ) | (4,814 | ) | (8,648 | ) | |||||
Net proceeds from issuance of common stock (Note 13) | 31,117 | 387,398 | 102,229 | ||||||||
Proceeds from exercise of stock options (Note 15) | 12,208 | 14,573 | 21,092 | ||||||||
Repurchase of common stock and restricted stock units (Note 13) | (8,875 | ) | (7,081 | ) | (3,533 | ) | |||||
Contributions from noncontrolling interests in consolidated property partnerships (Notes 2 and 11) | 453,449 | 474 | 977 | ||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (3,615 | ) | — | — | |||||||
Dividends and distributions paid to common stockholders and common unitholders | (137,444 | ) | (126,839 | ) | (118,463 | ) | |||||
Dividends and distributions paid to preferred stockholders and preferred unitholders | (13,250 | ) | (13,250 | ) | (13,250 | ) | |||||
Net cash provided by financing activities | 427,291 | 23,471 | 244,587 | ||||||||
Net increase (decrease) in cash and cash equivalents | 136,910 | 32,727 | (11,596 | ) | |||||||
Cash and cash equivalents, beginning of year | 56,508 | 23,781 | 35,377 | ||||||||
Cash and cash equivalents, end of year | $ | 193,418 | $ | 56,508 | $ | 23,781 |
December 31, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
REAL ESTATE ASSETS (Notes 3 and 18): | |||||||
Land and improvements | $ | 877,633 | $ | 657,491 | |||
Buildings and improvements | 4,059,639 | 3,590,699 | |||||
Undeveloped land and construction in progress | 1,120,660 | 1,016,757 | |||||
Total real estate held for investment | 6,057,932 | 5,264,947 | |||||
Accumulated depreciation and amortization | (947,664 | ) | (818,957 | ) | |||
Total real estate held for investment, net ($211,755 and $234,532 of VIE, Note 2) | 5,110,268 | 4,445,990 | |||||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET (Note 18) | 8,211 | 213,100 | |||||
CASH AND CASH EQUIVALENTS | 23,781 | 35,377 | |||||
RESTRICTED CASH (Note 18) | 75,185 | 49,780 | |||||
MARKETABLE SECURITIES (Notes 13 and 16) | 11,971 | 10,008 | |||||
CURRENT RECEIVABLES, NET (Note 5) | 7,229 | 10,743 | |||||
DEFERRED RENT RECEIVABLES, NET (Note 5) | 156,416 | 127,123 | |||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET (Notes 3 and 4) | 201,926 | 186,622 | |||||
DEFERRED FINANCING COSTS, NET (Notes 2 and 7) | 18,374 | 16,502 | |||||
PREPAID EXPENSES AND OTHER ASSETS, NET | 20,375 | 15,783 | |||||
TOTAL ASSETS | $ | 5,633,736 | $ | 5,111,028 | |||
LIABILITIES AND CAPITAL | |||||||
LIABILITIES: | |||||||
Secured debt (Notes 3, 7 and 16) | $ | 546,292 | $ | 560,434 | |||
Exchangeable senior notes, net (Notes 7 and 16) | — | 168,372 | |||||
Unsecured debt, net (Notes 7 and 16) | 1,783,121 | 1,431,132 | |||||
Unsecured line of credit (Notes 7 and 16) | 140,000 | 45,000 | |||||
Accounts payable, accrued expenses and other liabilities (Note 15) | 225,830 | 198,467 | |||||
Accrued distributions (Note 11) | 32,899 | 31,490 | |||||
Deferred revenue and acquisition-related intangible liabilities, net (Notes 3, 4 and 8) | 132,239 | 101,286 | |||||
Rents received in advance and tenant security deposits | 49,363 | 44,240 | |||||
Liabilities and deferred revenue of real estate assets held for sale (Note 18) | 56 | 14,447 | |||||
Total liabilities | 2,909,800 | 2,594,868 | |||||
COMMITMENTS AND CONTINGENCIES (Note 15) | |||||||
CAPITAL (Notes 9 and 11): | |||||||
Partners’ Capital: | |||||||
6.875% Series G Cumulative Redeemable Preferred units, 4,000,000 units issued and outstanding ($100,000 liquidation preference) | 96,155 | 96,155 | |||||
6.375% Series H Cumulative Redeemable Preferred units, 4,000,000 units issued and outstanding ($100,000 liquidation preference) | 96,256 | 96,256 | |||||
Common units, 86,259,684 and 82,153,944 held by the general partner and 1,804,200 and 1,805,200 held by common limited partners issued and outstanding, respectively | 2,521,900 | 2,315,361 | |||||
Total Partners’ Capital | 2,714,311 | 2,507,772 | |||||
Noncontrolling interests in consolidated subsidiaries (Notes 2, 3, and 9) | 9,625 | 8,388 | |||||
Total capital | 2,723,936 | 2,516,160 | |||||
TOTAL LIABILITIES AND CAPITAL | $ | 5,633,736 | $ | 5,111,028 |
December 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
REAL ESTATE ASSETS (Notes 2, 3 and 4): | |||||||
Land and improvements | $ | 1,108,971 | $ | 875,794 | |||
Buildings and improvements | 4,938,250 | 4,091,012 | |||||
Undeveloped land and construction in progress | 1,013,533 | 1,361,340 | |||||
Total real estate assets held for investment | 7,060,754 | 6,328,146 | |||||
Accumulated depreciation and amortization | (1,139,853 | ) | (994,241 | ) | |||
Total real estate assets held for investment, net | 5,920,901 | 5,333,905 | |||||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET (Note 4) | 9,417 | 117,666 | |||||
CASH AND CASH EQUIVALENTS (Notes 4 and 12) | 193,418 | 56,508 | |||||
RESTRICTED CASH (Note 4) | 56,711 | 696 | |||||
MARKETABLE SECURITIES (Notes 16 and 19) | 14,773 | 12,882 | |||||
CURRENT RECEIVABLES, NET (Note 6) | 13,460 | 11,153 | |||||
DEFERRED RENT RECEIVABLES, NET (Note 6) | 218,977 | 189,704 | |||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET (Notes 3 and 5) | 208,368 | 176,683 | |||||
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 7) | 70,608 | 27,233 | |||||
TOTAL ASSETS | $ | 6,706,633 | $ | 5,926,430 | |||
LIABILITIES AND CAPITAL | |||||||
LIABILITIES: | |||||||
Secured debt, net (Notes 9 and 19) | $ | 472,772 | $ | 380,835 | |||
Unsecured debt, net (Notes 9 and 19) | 1,847,351 | 1,844,634 | |||||
Accounts payable, accrued expenses and other liabilities (Note 18) | 202,391 | 246,323 | |||||
Accrued distributions (Notes 14 and 29) | 222,306 | 34,992 | |||||
Deferred revenue and acquisition-related intangible liabilities, net (Notes 3, 5 and 10) | 150,360 | 128,156 | |||||
Rents received in advance and tenant security deposits | 52,080 | 49,361 | |||||
Liabilities and deferred revenue of real estate assets held for sale (Note 4) | 56 | 7,543 | |||||
Total liabilities | 2,947,316 | 2,691,844 | |||||
COMMITMENTS AND CONTINGENCIES (Note 18) | |||||||
CAPITAL (Notes 12 and 14): | |||||||
Partners’ Capital: | |||||||
6.875% Series G Cumulative Redeemable Preferred units, 4,000,000 units issued and outstanding ($100,000 liquidation preference) | 96,155 | 96,155 | |||||
6.375% Series H Cumulative Redeemable Preferred units, 4,000,000 units issued and outstanding ($100,000 liquidation preference) | 96,256 | 96,256 | |||||
Common units, 93,219,439 and 92,258,690 held by the general partner and 2,381,543 and 1,764,775 held by common limited partners issued and outstanding, respectively | 3,431,768 | 3,031,609 | |||||
Total Partners’ Capital | 3,624,179 | 3,224,020 | |||||
Noncontrolling interests in consolidated property partnerships and subsidiaries (Notes 2 and 12) | 135,138 | 10,566 | |||||
Total capital | 3,759,317 | 3,234,586 | |||||
TOTAL LIABILITIES AND CAPITAL | $ | 6,706,633 | $ | 5,926,430 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2016 | 2015 | 2014 | |||||||||||||||||
REVENUES: | ||||||||||||||||||||||
Rental income | $ | 466,328 | $ | 411,899 | $ | 342,164 | $ | 574,413 | $ | 525,355 | $ | 466,328 | ||||||||||
Tenant reimbursements | 46,717 | 38,047 | 29,667 | 61,079 | 53,774 | 46,717 | ||||||||||||||||
Other property income (Notes 15 and 17) | 8,680 | 7,165 | 1,487 | |||||||||||||||||||
Other property income (Notes 18 and 20) | 7,080 | 2,146 | 8,680 | |||||||||||||||||||
Total revenues | 521,725 | 457,111 | 373,318 | 642,572 | 581,275 | 521,725 | ||||||||||||||||
EXPENSES: | ||||||||||||||||||||||
Property expenses | 100,514 | 94,115 | 73,998 | 113,932 | 105,378 | 100,514 | ||||||||||||||||
Real estate taxes | 45,197 | 39,417 | 31,562 | 55,206 | 50,223 | 45,197 | ||||||||||||||||
Provision for bad debts | 58 | 396 | 153 | — | 545 | 58 | ||||||||||||||||
Ground leases (Notes 4 and 15) | 3,075 | 3,504 | 3,168 | |||||||||||||||||||
Ground leases (Notes 5 and 18) | 3,439 | 3,096 | 3,075 | |||||||||||||||||||
General and administrative expenses | 46,152 | 39,660 | 36,188 | 57,029 | 48,265 | 46,152 | ||||||||||||||||
Acquisition-related expenses | 1,479 | 1,962 | 4,937 | 1,902 | 497 | 1,479 | ||||||||||||||||
Depreciation and amortization (Notes 2 and 4) | 202,417 | 188,887 | 150,521 | |||||||||||||||||||
Depreciation and amortization (Notes 2 and 5) | 217,234 | 204,294 | 202,417 | |||||||||||||||||||
Total expenses | 398,892 | 367,941 | 300,527 | 448,742 | 412,298 | 398,892 | ||||||||||||||||
OTHER (EXPENSES) INCOME: | ||||||||||||||||||||||
Interest income and other net investment gains (Note 16) | 561 | 1,635 | 848 | |||||||||||||||||||
Interest expense (Note 7) | (67,571 | ) | (75,870 | ) | (79,114 | ) | ||||||||||||||||
Interest income and other net investment gains (losses) (Note 19) | 1,764 | 243 | 561 | |||||||||||||||||||
Interest expense (Note 9) | (55,803 | ) | (57,682 | ) | (67,571 | ) | ||||||||||||||||
Total other (expenses) income | (67,010 | ) | (74,235 | ) | (78,266 | ) | (54,039 | ) | (57,439 | ) | (67,010 | ) | ||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF LAND | 55,823 | 14,935 | (5,475 | ) | ||||||||||||||||||
Gain on sale of land (Note 18) | 3,490 | — | — | |||||||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 59,313 | 14,935 | (5,475 | ) | ||||||||||||||||||
DISCONTINUED OPERATIONS (Note 18) | ||||||||||||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE GAINS ON SALES OF REAL ESTATE | 139,791 | 111,538 | 55,823 | |||||||||||||||||||
Net (loss) gain on sales of land (Note 4) | (295 | ) | 17,116 | 3,490 | ||||||||||||||||||
Gains on sales of depreciable operating properties (Note 4) | 164,302 | 109,950 | — | |||||||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 303,798 | 238,604 | 59,313 | |||||||||||||||||||
DISCONTINUED OPERATIONS (Note 21) | ||||||||||||||||||||||
Income from discontinued operations | 2,573 | 17,378 | 23,331 | — | — | 2,573 | ||||||||||||||||
Net gain on dispositions of discontinued operations | 121,922 | 12,252 | 259,245 | — | — | 121,922 | ||||||||||||||||
Total income from discontinued operations | 124,495 | 29,630 | 282,576 | — | — | 124,495 | ||||||||||||||||
NET INCOME | 183,808 | 44,565 | 277,101 | 303,798 | 238,604 | 183,808 | ||||||||||||||||
Net income attributable to noncontrolling interests in consolidated subsidiaries | (260 | ) | (224 | ) | (638 | ) | ||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships and subsidiaries (Notes 2 and 12) | (3,735 | ) | (467 | ) | (260 | ) | ||||||||||||||||
NET INCOME ATTRIBUTABLE TO KILROY REALTY, L.P. | 183,548 | 44,341 | 276,463 | 300,063 | 238,137 | 183,548 | ||||||||||||||||
Preferred distributions (Note 11) | (13,250 | ) | (13,250 | ) | (14,108 | ) | ||||||||||||||||
Original issuance costs of redeemed preferred units (Notes 9 and 11) | — | — | (6,980 | ) | ||||||||||||||||||
Total preferred distributions | (13,250 | ) | (13,250 | ) | (21,088 | ) | ||||||||||||||||
PREFERRED DISTRIBUTIONS (NOTE 14) | (13,250 | ) | (13,250 | ) | (13,250 | ) | ||||||||||||||||
NET INCOME AVAILABLE TO COMMON UNITHOLDERS | $ | 170,298 | $ | 31,091 | $ | 255,375 | $ | 286,813 | $ | 224,887 | $ | 170,298 | ||||||||||
Income (loss) from continuing operations available to common unitholders per unit – basic (Note 20) | $ | 0.52 | $ | 0.00 | $ | (0.40 | ) | |||||||||||||||
Income (loss) from continuing operations available to common unitholders per unit – diluted (Note 20) | $ | 0.51 | $ | 0.00 | $ | (0.40 | ) | |||||||||||||||
Net income available to common unitholders per unit – basic (Note 20) | $ | 1.99 | $ | 0.37 | $ | 3.56 | ||||||||||||||||
Net income available to common unitholders per unit – diluted (Note 20) | $ | 1.94 | $ | 0.37 | $ | 3.56 | ||||||||||||||||
Weighted average common units outstanding – basic (Note 20) | 84,894,498 | 79,166,260 | 71,403,258 | |||||||||||||||||||
Weighted average common units outstanding – diluted (Note 20) | 86,771,983 | 79,166,260 | 71,403,258 | |||||||||||||||||||
Income from continuing operations available to common unitholders per unit – basic (Note 23) | $ | 2.99 | $ | 2.44 | $ | 0.52 | ||||||||||||||||
Income from continuing operations available to common unitholders per unit – diluted (Note 23) | $ | 2.96 | $ | 2.42 | $ | 0.51 | ||||||||||||||||
Net income available to common unitholders per unit – basic (Note 23) | $ | 2.99 | $ | 2.44 | $ | 1.99 | ||||||||||||||||
Net income available to common unitholders per unit – diluted (Note 23) | $ | 2.96 | $ | 2.42 | $ | 1.94 | ||||||||||||||||
Weighted average common units outstanding – basic (Note 23) | 94,771,688 | 91,645,578 | 84,894,498 | |||||||||||||||||||
Weighted average common units outstanding – diluted (Note 23) | 95,452,239 | 92,187,257 | 86,771,983 |
Partners’ Capital | Total Partners’ Capital | Noncontrolling Interests in Consolidated Subsidiaries | Partners’ Capital | Total Partners’ Capital | Noncontrolling Interests in Consolidated Property Partnerships and Subsidiaries | |||||||||||||||||||||||||||||||||||||||
Preferred Units | Number of Common Units | Common Units | Total Capital | Preferred Units | Number of Common Units | Common Units | Total Capital | |||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2011 | $ | 121,582 | 60,537,848 | $ | 1,203,259 | $ | 1,324,841 | $ | 2,641 | $ | 1,327,482 | |||||||||||||||||||||||||||||||||
Net income | 276,463 | 276,463 | 638 | 277,101 | ||||||||||||||||||||||||||||||||||||||||
Issuance of Series G and Series H Preferred Stock | 192,411 | 192,411 | 192,411 | |||||||||||||||||||||||||||||||||||||||||
Redemption of Series E and Series F Preferred Stock | (121,582 | ) | (4,918 | ) | (126,500 | ) | (126,500 | ) | ||||||||||||||||||||||||||||||||||||
Redemption of Series A Preferred Units | (2,062 | ) | (2,062 | ) | (2,062 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance of common units | 16,024,618 | 672,102 | 672,102 | 672,102 | ||||||||||||||||||||||||||||||||||||||||
Issuance of common units in connection with an operating property acquisition | 118,372 | 5,604 | 5,604 | 5,604 | ||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 62,137 | 1,291 | 1,291 | 1,291 | ||||||||||||||||||||||||||||||||||||||||
Noncash amortization of share-based compensation | 8,537 | 8,537 | 8,537 | |||||||||||||||||||||||||||||||||||||||||
Repurchase of common units and restricted stock units | (22,312 | ) | (877 | ) | (877 | ) | (877 | ) | ||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units | 27,821 | (784 | ) | (784 | ) | (784 | ) | |||||||||||||||||||||||||||||||||||||
Exercise of stock options | 5,000 | 129 | 129 | 129 | ||||||||||||||||||||||||||||||||||||||||
Preferred distributions | (14,108 | ) | (14,108 | ) | (14,108 | ) | ||||||||||||||||||||||||||||||||||||||
Distributions declared per common unit ($1.40 per unit) | (104,393 | ) | (104,393 | ) | (104,393 | ) | ||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2012 | 192,411 | 76,753,484 | 2,040,243 | 2,232,654 | 3,279 | 2,235,933 | ||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2013 | $ | 192,411 | 83,959,144 | $ | 2,315,361 | $ | 2,507,772 | $ | 8,388 | $ | 2,516,160 | |||||||||||||||||||||||||||||||||
Net income | 44,341 | 44,341 | 224 | 44,565 | 183,548 | 183,548 | 260 | 183,808 | ||||||||||||||||||||||||||||||||||||
Issuance of common units | 7,210,838 | 349,951 | 349,951 | 349,951 | 1,950,599 | 123,860 | 123,860 | 123,860 | ||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 1,448 | 1,448 | 1,448 | 1,692 | 1,692 | 1,692 | ||||||||||||||||||||||||||||||||||||||
Noncash amortization of share-based compensation | 9,563 | 9,563 | 9,563 | |||||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation | 14,471 | 14,471 | 14,471 | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 495,000 | 21,092 | 21,092 | 21,092 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common units and restricted stock units | (42,896 | ) | (2,521 | ) | (2,521 | ) | (2,521 | ) | (58,045 | ) | (3,533 | ) | (3,533 | ) | (3,533 | ) | ||||||||||||||||||||||||||||
Settlement of restricted stock units | 37,245 | 1 | 1 | 1 | 141,205 | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||||||||||
Exercise of stock options | 473 | 128 | 128 | 128 | ||||||||||||||||||||||||||||||||||||||||
Shares of common stock issued in connection with settlement of 4.25% Exchangeable Senior Notes | 2,091,323 | 223 | 223 | 223 | ||||||||||||||||||||||||||||||||||||||||
Shares of common stock received in connection with capped call option transactions | (515,342 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||
Contribution by noncontrolling interest in consolidated subsidiary | 4,885 | 4,885 | 977 | 977 | ||||||||||||||||||||||||||||||||||||||||
Preferred distributions | (13,250 | ) | (13,250 | ) | (13,250 | ) | (13,250 | ) | (13,250 | ) | (13,250 | ) | ||||||||||||||||||||||||||||||||
Distributions declared per common unit ($1.40 per unit) | (114,543 | ) | (114,543 | ) | (114,543 | ) | (121,563 | ) | (121,563 | ) | (121,563 | ) | ||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2013 | 192,411 | 83,959,144 | 2,315,361 | 2,507,772 | 8,388 | 2,516,160 | ||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2014 | 192,411 | 88,063,884 | 2,521,900 | 2,714,311 | 9,625 | 2,723,936 | ||||||||||||||||||||||||||||||||||||||
Net income | 183,548 | 183,548 | 260 | 183,808 | 238,137 | 238,137 | 467 | 238,604 | ||||||||||||||||||||||||||||||||||||
Issuance of common units (Note 11) | 1,950,599 | 123,860 | 123,860 | 123,860 | ||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards (Note 12) | 1,692 | 1,692 | 1,692 | |||||||||||||||||||||||||||||||||||||||||
Noncash amortization of share-based compensation (Note 12) | 14,471 | 14,471 | 14,471 | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options (Note 12) | 495,000 | 21,092 | 21,092 | 21,092 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common units and restricted stock units (Note 12) | (58,045 | ) | (3,533 | ) | (3,533 | ) | (3,533 | ) | ||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units (Note 12) | 141,205 | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||||||||||||||
Common shares issued in connection with settlement of 4.25% Exchangeable Senior Notes (Note 7) | 2,091,323 | 223 | 223 | 223 | ||||||||||||||||||||||||||||||||||||||||
Common shares received in connection with capped call option transactions (Note 7) | (515,342 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||
Contribution by noncontrolling interest in consolidated subsidiary (Note 2) | 977 | 977 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common units | 5,640,033 | 387,398 | 387,398 | 387,398 | ||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 1,692 | 1,692 | 1,692 | |||||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation | 18,869 | 18,869 | 18,869 | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 342,000 | 14,573 | 14,573 | 14,573 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common units and restricted stock units | (101,389 | ) | (7,081 | ) | (7,081 | ) | (7,081 | ) | ||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units | 78,937 | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||||||||||||||
Contribution by noncontrolling interest in consolidated subsidiary | 474 | 474 | ||||||||||||||||||||||||||||||||||||||||||
Preferred distributions | (13,250 | ) | (13,250 | ) | (13,250 | ) | (13,250 | ) | (13,250 | ) | (13,250 | ) | ||||||||||||||||||||||||||||||||
Distributions declared per common unit ($1.40 per unit) | (121,563 | ) | (121,563 | ) | (121,563 | ) | (130,628 | ) | (130,628 | ) | (130,628 | ) | ||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2014 | $ | 192,411 | 88,063,884 | $ | 2,521,900 | $ | 2,714,311 | $ | 9,625 | $ | 2,723,936 | |||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2015 | 192,411 | 94,023,465 | 3,031,609 | 3,224,020 | 10,566 | 3,234,586 | ||||||||||||||||||||||||||||||||||||||
Net income | 300,063 | 300,063 | 3,735 | 303,798 | ||||||||||||||||||||||||||||||||||||||||
Issuance of common units (Note 14) | 451,398 | 31,117 | 31,117 | 31,117 | ||||||||||||||||||||||||||||||||||||||||
Issuance of common units in connection with acquisition (Note 3) | 867,701 | 48,033 | 48,033 | 48,033 | ||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards (Note 15) | 1,827 | 1,827 | 1,827 | |||||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation (Note 15) | 26,624 | 26,624 | 26,624 | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options (Note 15) | 286,500 | 12,208 | 12,208 | 12,208 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common units and restricted stock units (Note 15) | (137,126 | ) | (8,875 | ) | (8,875 | ) | (8,875 | ) | ||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units (Note 15) | 109,044 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Initial contributions from noncontrolling interest in consolidated property partnership, net of transaction costs (Note 12) | 328,997 | 328,997 | 124,452 | 453,449 | ||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (3,615 | ) | (3,615 | ) | ||||||||||||||||||||||||||||||||||||||||
Preferred distributions | (13,250 | ) | (13,250 | ) | (13,250 | ) | ||||||||||||||||||||||||||||||||||||||
Distributions declared per common unit ($3.375 per unit) | (326,585 | ) | (326,585 | ) | (326,585 | ) | ||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2016 | $ | 192,411 | 95,600,982 | $ | 3,431,768 | $ | 3,624,179 | $ | 135,138 | $ | 3,759,317 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 183,808 | $ | 44,565 | $ | 277,101 | |||||
Adjustments to reconcile net income to net cash provided by operating activities (including discontinued operations): | |||||||||||
Depreciation and amortization of buildings and improvements and leasing costs | 202,108 | 199,558 | 168,687 | ||||||||
Increase (decrease) in provision for bad debts | 58 | 396 | (42 | ) | |||||||
Depreciation of furniture, fixtures and equipment | 2,370 | 1,929 | 1,213 | ||||||||
Noncash amortization of share-based compensation awards (Note 12) | 12,095 | 8,616 | 7,670 | ||||||||
Noncash amortization of deferred financing costs and debt discounts and premiums | 4,315 | 5,315 | 8,433 | ||||||||
Noncash amortization of net below market rents (Note 4) | (8,328 | ) | (7,777 | ) | (6,699 | ) | |||||
Net gain on dispositions of discontinued operations (Note 18) | (121,922 | ) | (12,252 | ) | (259,245 | ) | |||||
Gain on sale of land (Note 18) | (3,490 | ) | — | — | |||||||
Noncash amortization of deferred revenue related to tenant-funded tenant improvements (Note 8) | (10,979 | ) | (10,713 | ) | (9,136 | ) | |||||
Straight-line rents | (31,782 | ) | (24,135 | ) | (21,530 | ) | |||||
Net change in other operating assets | 367 | (4,615 | ) | (1,297 | ) | ||||||
Net change in other operating liabilities | 16,633 | 40,137 | 17,320 | ||||||||
Insurance proceeds received for property damage and other, net | — | (448 | ) | (1,751 | ) | ||||||
Net cash provided by operating activities | 245,253 | 240,576 | 180,724 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Expenditures for acquisitions of operating properties, net of cash acquired (Note 3) | (204,546 | ) | (202,682 | ) | (454,841 | ) | |||||
Expenditures for acquisitions of development and redevelopment properties (Note 3) | (147,182 | ) | (102,769 | ) | (333,942 | ) | |||||
Expenditures for operating properties | (132,080 | ) | (129,873 | ) | (86,377 | ) | |||||
Expenditures for development and redevelopment properties and undeveloped land | (417,784 | ) | (320,141 | ) | (83,310 | ) | |||||
Net proceeds received from dispositions of operating properties (Note 18) | 427,544 | 21,178 | 263,572 | ||||||||
Insurance proceeds received for property damage | — | 448 | 1,751 | ||||||||
(Increase) decrease in acquisition-related deposits | (1,983 | ) | (2,596 | ) | 5,000 | ||||||
(Increase) decrease in restricted cash (Note 18) | (25,405 | ) | 229,915 | (18,359 | ) | ||||||
Net cash used in investing activities | (501,436 | ) | (506,520 | ) | (706,506 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net proceeds from issuance of common units (Note 11) | 102,229 | 349,951 | 672,102 | ||||||||
Borrowings on unsecured line of credit | 505,000 | 55,000 | 704,000 | ||||||||
Repayments on unsecured line of credit | (410,000 | ) | (195,000 | ) | (701,000 | ) | |||||
Proceeds from the issuance of unsecured debt (Note 7) | 395,528 | 299,901 | 150,000 | ||||||||
Repayments of exchangeable senior notes (Note 7) | (172,500 | ) | — | (148,000 | ) | ||||||
Principal payments on secured debt | (9,845 | ) | (93,688 | ) | (106,262 | ) | |||||
Borrowings on unsecured debt (Note 7) | 39,000 | — | — | ||||||||
Repayments of unsecured debt (Note 7) | (83,000 | ) | — | — | |||||||
Net proceeds from issuance of Series G and Series H preferred units | — | — | 192,411 | ||||||||
Redemption of Series E and Series F preferred units | — | — | (126,500 | ) | |||||||
Redemption of Series A preferred units | — | — | (75,000 | ) | |||||||
Proceeds from the issuance of secured debt | — | — | 97,000 | ||||||||
Financing costs | (8,648 | ) | (4,384 | ) | (7,963 | ) | |||||
Repurchase of common units and restricted stock units | (3,533 | ) | (2,520 | ) | (1,661 | ) | |||||
Proceeds from exercise of stock options | 21,092 | 128 | 129 | ||||||||
Contributions from noncontrolling interests in consolidated subsidiary | 977 | — | — | ||||||||
Distributions paid to common unitholders | (118,463 | ) | (111,517 | ) | (97,386 | ) | |||||
Distributions paid to preferred unitholders | (13,250 | ) | (13,250 | ) | (14,165 | ) | |||||
Net cash provided by financing activities | 244,587 | 284,621 | 537,705 | ||||||||
Net (decrease) increase in cash and cash equivalents | (11,596 | ) | 18,677 | 11,923 | |||||||
Cash and cash equivalents, beginning of year | 35,377 | 16,700 | 4,777 | ||||||||
Cash and cash equivalents, end of year | $ | 23,781 | $ | 35,377 | $ | 16,700 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||||||
Cash paid for interest, net of capitalized interest of $44,385, $32,742, and $17,657 as of December 31, 2014, 2013 and 2012, respectively | $ | 58,944 | $ | 65,157 | $ | 71,633 | |||||
NONCASH INVESTING TRANSACTIONS: | |||||||||||
Accrual for expenditures for operating properties and development and redevelopment properties | $ | 77,091 | $ | 73,482 | $ | 54,198 | |||||
Tenant improvements funded directly by tenants | $ | 42,906 | $ | 7,633 | $ | 17,719 | |||||
Assumption of secured debt in connection with property acquisition (Notes 3 and 7) | $ | — | $ | 95,496 | $ | 221,032 | |||||
Assumption of other assets and liabilities in connection with operating and development property acquisitions, net (Note 3) | $ | 14,917 | $ | 1,811 | $ | 37,535 | |||||
Contribution of land, net of related liabilities, by noncontrolling interest to consolidated subsidiary (Note 3) | $ | — | $ | 4,885 | $ | — | |||||
NONCASH FINANCING TRANSACTIONS: | |||||||||||
Accrual of distributions payable to common unitholders (Note 11) | $ | 31,243 | $ | 29,378 | $ | 26,863 | |||||
Accrual of distributions payable to preferred unitholders (Note 11) | $ | 1,656 | $ | 1,694 | $ | 1,694 | |||||
Grant date fair value of share-based compensation awards (Note 12) | $ | 20,739 | $ | 10,721 | $ | 31,396 | |||||
Issuance of common units in connection with a development property acquisition (Notes 3 and 11) | $ | 21,631 | $ | — | $ | — | |||||
Issuance of common units in connection with an operating property acquisition (Note 3) | $ | — | $ | — | $ | 5,604 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 303,798 | $ | 238,604 | $ | 183,808 | |||||
Adjustments to reconcile net income to net cash provided by operating activities (including discontinued operations): | |||||||||||
Depreciation and amortization of real estate assets and leasing costs | 213,156 | 201,482 | 202,108 | ||||||||
Depreciation of non-real estate furniture, fixtures and equipment | 4,078 | 2,812 | 2,370 | ||||||||
Increase in provision for bad debts | — | 545 | 58 | ||||||||
Non-cash amortization of share-based compensation awards (Note 15) | 21,064 | 15,537 | 12,095 | ||||||||
Non-cash amortization of deferred financing costs and debt discounts and premiums | 2,720 | 1,853 | 4,315 | ||||||||
Non-cash amortization of net below market rents (Note 5) | (7,166 | ) | (8,449 | ) | (8,328 | ) | |||||
Gains on sales of depreciable operating properties (Note 4) | (164,302 | ) | (109,950 | ) | — | ||||||
Gains on sales of discontinued operations (Note 21) | — | — | (121,922 | ) | |||||||
Loss (gain) on sales of land (Note 4) | 295 | (17,116 | ) | (3,490 | ) | ||||||
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements (Note 10) | (13,244 | ) | (13,338 | ) | (10,979 | ) | |||||
Straight-line rents | (29,629 | ) | (44,383 | ) | (31,782 | ) | |||||
Net change in other operating assets | (5,214 | ) | (8,085 | ) | 367 | ||||||
Net change in other operating liabilities | 19,498 | 12,496 | 16,633 | ||||||||
Net cash provided by operating activities | 345,054 | 272,008 | 245,253 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Expenditures for development properties and undeveloped land | (351,012 | ) | (407,969 | ) | (417,784 | ) | |||||
Expenditures for acquisitions of development properties and undeveloped land (Note 3) | (33,513 | ) | (139,073 | ) | (147,182 | ) | |||||
Expenditures for acquisitions of operating properties (Note 3) | (393,767 | ) | — | (204,546 | ) | ||||||
Expenditures for operating properties and other capital assets | (111,961 | ) | (99,557 | ) | (132,080 | ) | |||||
Net proceeds received from dispositions (Notes 4 and 21) | 325,031 | 319,639 | 427,544 | ||||||||
(Increase) decrease in restricted cash (Note 4) | (56,015 | ) | 65,210 | (25,405 | ) | ||||||
Issuance of notes receivable (Note 7) | (16,100 | ) | (3,000 | ) | — | ||||||
Decrease (increase) in acquisition-related deposits | 1,902 | 1,998 | (1,983 | ) | |||||||
Net cash used in investing activities | (635,435 | ) | (262,752 | ) | (501,436 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings on unsecured revolving credit facility | 305,000 | 250,000 | 505,000 | ||||||||
Repayments on unsecured revolving credit facilty | (305,000 | ) | (390,000 | ) | (410,000 | ) | |||||
Proceeds from the issuance of secured debt (Note 9) | 170,000 | — | — | ||||||||
Principal payments and repayments of secured debt (Note 9) | (74,140 | ) | (159,766 | ) | (9,845 | ) | |||||
Net proceeds from the issuance of unsecured debt (Note 9) | — | 397,776 | 395,528 | ||||||||
Repayments of unsecured debt (Note 9) | — | (325,000 | ) | (83,000 | ) | ||||||
Repayments of exchangeable senior notes (Note 9) | — | — | (172,500 | ) | |||||||
Borrowings on unsecured debt (Note 9) | — | — | 39,000 | ||||||||
Financing costs | (2,159 | ) | (4,814 | ) | (8,648 | ) | |||||
Net proceeds from issuance of common units (Note 14) | 31,117 | 387,398 | 102,229 | ||||||||
Proceeds from exercise of stock options (Note 15) | 12,208 | 14,573 | 21,092 | ||||||||
Repurchase of common units and restricted stock units (Note 14) | (8,875 | ) | (7,081 | ) | (3,533 | ) | |||||
Contributions from noncontrolling interests in consolidated property partnerships (Notes 2 and 12) | 453,449 | 474 | 977 | ||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (3,615 | ) | — | — | |||||||
Distributions paid to common unitholders | (137,444 | ) | (126,839 | ) | (118,463 | ) | |||||
Distributions paid to preferred unitholders | (13,250 | ) | (13,250 | ) | (13,250 | ) | |||||
Net cash provided by financing activities | 427,291 | 23,471 | 244,587 | ||||||||
Net increase (decrease) in cash and cash equivalents | 136,910 | 32,727 | (11,596 | ) | |||||||
Cash and cash equivalents, beginning of year | 56,508 | 23,781 | 35,377 | ||||||||
Cash and cash equivalents, end of year | $ | 193,418 | $ | 56,508 | $ | 23,781 |
1. | Organization and Ownership |
Number of Buildings | Rentable Square Feet (unaudited) | Number of Tenants | Percentage Occupied | ||||||||
Stabilized Office Properties | 111 | 14,096,617 | 526 | 94.4 | % |
Number of Buildings | Rentable Square Feet (unaudited) | Number of Tenants | Percentage Occupied (unaudited) | Percentage Leased (unaudited) | ||||||||||
Stabilized Office Properties | 108 | 14,025,856 | 549 | 96.0 | % | 97.0 | % |
Number of Buildings | Number of Units | Percentage Occupied (unaudited) | Percentage Leased (unaudited) | ||||||||
Stabilized Residential Property | 1 | 200 | 46.0 | % | 56.5 | % |
Number of Properties/Projects | Estimated Rentable Square Feet (unaudited) (1) | |||
Development projects under construction | 6 | 1,732,000 |
Number of Properties/Projects | Estimated Office Rentable Square Feet (unaudited) | |||
Properties held for sale (1) | 1 | 67,995 | ||
Development project in “lease-up" (2) | 1 | 377,000 | ||
Development projects under construction (2)(3) | 3 | 1,100,000 |
(1) | See Note 4 “Dispositions and Real Estate Assets Held for Sale” for additional information. |
(2) | Estimated rentable square feet upon completion. |
(3) | Development projects under construction also include 96,000 square feet of retail space and 237 residential units in addition to the estimated office rentable square feet noted above. |
2. | Basis of Presentation and Significant Accounting Policies |
Asset Description | Depreciable Lives | |
Buildings and improvements | 25 – 40 years | |
Tenant improvements | 1 – 20 years (1) |
(1) | Tenant improvements are amortized over the shorter of the lease term or the estimated useful life. |
3. | Acquisitions |
Property | Date of Acquisition | Number of Buildings | Rentable Square Feet (unaudited) | Occupancy as of December 31, 2014 (unaudited) | Purchase Price (in millions) (1) | ||||||||
2014 Acquisitions | |||||||||||||
401 Terry Ave. N., Seattle, WA | March 13, 2014 | 1 | 140,605 | 100.0% | $ | 106.1 | |||||||
1310, 1315, 1320-1324, 1325-1327 Chesapeake Terrace, Sunnyvale, CA (2) | November 5, 2014 | 4 | 266,982 | 86.0% | 100.5 | ||||||||
Total (3) | 5 | 407,587 | $ | 206.6 | |||||||||
2013 Acquisitions | |||||||||||||
320 Westlake Ave. N. and 321 Terry Ave. N., Seattle, WA (4)(5) | January 16, 2013 | 2 | 320,398 | 100.0% | $ | 170.0 | |||||||
12780 and 12790 El Camino Real, San Diego, CA (6) | September 19, 2013 | 2 | 218,940 | 100.0% | 126.4 | ||||||||
Total (7) | 4 | 539,338 | $ | 296.4 |
Property | Date of Acquisition | Number of Buildings | Rentable Square Feet (unaudited) | Occupancy as of December 31, 2016 (unaudited) | Purchase Price (in millions) (1) | ||||||||
2016 Acquisitions | |||||||||||||
1290-1300 Terra Bella Avenue, Mountain View, CA (2) | June 8, 2016 | 1 | 114,175 | 100.0% | $ | 55.4 | |||||||
8560-8590 West Sunset Blvd., West Hollywood, CA (3) | December 7, 2016 | 4 | 178,699 | 87.5% | 209.2 | ||||||||
1701 Page Mill Rd. and 3150 Porter Dr., Palo Alto, CA (4) | December 19, 2016 | 2 | 165,585 | 100.0% | 130.0 | ||||||||
Total (5) | 7 | 458,459 | $ | 394.6 |
(1) | Excludes acquisition-related costs and non-lease related accrued liabilities assumed. Includes assumed unpaid leasing commissions and tenant improvements. |
(2) | In connection with this acquisition, the Company assumed $0.2 million in accrued liabilities that are not included in the purchase price above. |
(3) | This acquisition encompasses a 10-story office tower, three retail buildings, a four-level subterranean parking structure and three billboards. As of December 31, |
In connection with this acquisition, the Company entered into a long-term ground lease expiring in December 2067. |
(5) | The results of operations for the properties acquired during |
Acquisitions | Total 2014 Acquisitions (1) | Total 2013 Acquisitions (1) | Total 2016 Acquisitions (1) | ||||||
(in thousands) | |||||||||
Assets | (in thousands) | ||||||||
Land and improvements | $ | 81,430 | $ | 53,790 | $ | 120,110 | |||
Buildings and improvements (2) | 114,876 | 218,211 | 259,301 | ||||||
Undeveloped land and construction in progress (3) | — | 9,360 | |||||||
Deferred leasing costs and acquisition-related intangible assets (4) | 17,259 | 30,789 | |||||||
Deferred leasing costs and acquisition-related intangible assets (3) | 33,529 | ||||||||
Total assets acquired | 213,565 | 312,150 | 412,940 | ||||||
Liabilities | |||||||||
Accounts payable, accrued expenses and other liabilities | 1,122 | ||||||||
Deferred revenue and acquisition-related intangible liabilities | 6,990 | 4,190 | 18,050 | ||||||
Secured debt, net (6) | — | 95,496 | |||||||
Accounts payable, accrued expenses and other liabilities | 2,029 | 422 | |||||||
Total liabilities assumed | 9,019 | 100,108 | 19,172 | ||||||
Net assets and liabilities acquired (7) | $ | 204,546 | $ | 212,042 | |||||
Net assets and liabilities acquired | $ | 393,768 |
(1) | The purchase price of the |
(2) | Represents buildings, building improvements and tenant improvements. |
(3) |
(4) | Represents |
Project | Date of Acquisition | Type | Purchase Price (in millions) | Date of Acquisition | City/Submarket | Type | Purchase Price (1) (in millions) | |||||||||||
The Exchange on 16th, San Francisco, CA (1) | May 23, 2014 | Development | $ | 95.0 | ||||||||||||||
Flower Mart, San Francisco, CA (2) | October 23, 2014, December 19, 2014 | Development | 71.0 | |||||||||||||||
2015 Acquisitions | ||||||||||||||||||
333 Dexter (2) | February 13, 2015 | Seattle, WA | Land | $ | 49.5 | |||||||||||||
100 Hooper (3) | July 7, 2015 | San Francisco, CA | Land | 78.0 | ||||||||||||||
Total | $ | 166.0 | $ | 127.5 |
(1) | See Note 18 “Commitments and Contingencies” for additional information on certain accrued liabilities for these acquisitions. |
(2) | Acquisition comprised of four adjacent parcels in the South Lake Union submarket of Seattle, Washington located at 330 Dexter Avenue North, 333 Dexter Avenue North, 401 Dexter Avenue North, and 400 Aurora Avenue North. In connection with this acquisition, we also assumed |
Includes the land parcel located at 150 Hooper. In connection with this acquisition, we assumed $4.1 million in accrued liabilities and acquisition costs that are not included in the |
Location | Month of Disposition | Number of Buildings | Rentable Square Feet (unaudited) | Sales Price (in millions) (1) | |||||||
2016 Dispositions | |||||||||||
Torrey Santa Fe Properties (2) | January | 4 | 465,812 | $ | 262.3 | ||||||
4930, 4939 & 4955 Directors Place, San Diego, CA (3) | July | 2 | 136,908 | 49.0 | |||||||
Total 2016 Dispositions | 6 | 602,720 | $ | 311.3 | |||||||
2015 Dispositions | |||||||||||
15050 NE 36th Street, Redmond, WA | April | 1 | 122,103 | $ | 51.2 | ||||||
San Diego Properties - Tranches 1 and 2 (4) | April/July | 9 | 924,291 | 258.0 | |||||||
Total 2015 Dispositions | 10 | 1,046,394 | $ | 309.2 | |||||||
2014 Dispositions (5) | |||||||||||
San Diego Properties, San Diego, CA (6) | January | 12 | 1,049,035 | $ | 294.7 | ||||||
9785 & 9791 Towne Centre Drive, San Diego, CA | June | 2 | 126,000 | 29.5 | |||||||
111 Pacifica, Irvine, CA | September | 1 | 67,496 | 15.1 | |||||||
4040 Civic Center Drive, San Rafael, CA | October | 1 | 130,237 | 34.9 | |||||||
999 Town & Country Road, Orange, CA | December | 1 | 98,551 | 25.3 | |||||||
Total 2014 Dispositions | 17 | 1,471,319 | $ | 399.5 |
(1) | Represents gross sales price before the impact of broker commissions and closing costs. |
(2) | The Torrey Santa Fe Properties include the following properties: 7525 Torrey Santa Fe, 7535 Torrey Santa Fe, 7545 Torrey Santa Fe and 7555 Torrey Santa Fe. These properties were classified as held for sale at December 31, 2015. |
(3) | Includes two operating properties totaling 136,908 rentable square feet and a 7.0 acre undeveloped land parcel. |
(4) | The San Diego Properties - Tranche 1 includes the following properties: 10770 Wateridge Circle, 6200 Greenwich Drive and 6220 Greenwich Drive. The San Diego Properties - Tranche 2 includes the following properties: 6260 Sequence Drive, 6290, Sequence Drive, 6310 Sequence Drive, 6340 Sequence Drive, 6350 Sequence Drive and 4921 Directors Place. |
(5) | The Company adopted ASU 2014-08 effective January 1, 2015 (see Note 2 “Basis of Presentation and Significant Accounting Policies” for additional information). As a result, results of operations for properties disposed of subsequent of January 1, 2015 are presented in continuing operations because they did not represent strategic shifts. Properties disposed of prior to January 1, 2015 are presented in discontinued operations. |
(6) | The San Diego Properties included the following properties: 10020 Pacific Mesa Boulevard, 6055 Lusk Avenue, 5010 and 5005 Wateridge Vista Drive, 15435 and 15445 Innovation Drive, and 15051, 15073, 15231, 15253, 15333 and 15378 Avenue of Science. These properties were held for sale as of December 31, 2013. |
Project | Date of Acquisition | Type | Purchase Price (in millions) | |||||
Academy Project, Hollywood, CA (1) | November 15, 2013 | Development | $ | 45.0 | ||||
360 Third Street, San Francisco, CA (2) | October 29, 2013 | Land | 27.5 | |||||
Total | $ | 72.5 |
Properties | Submarket | Property Type | Number of Buildings | Rentable Square Feet (unaudited) | |||||
2016 Held for Sale | |||||||||
5717 Pacific Center Drive (1) | Sorrento Mesa | Office | 1 | 67,995 | |||||
2015 Held for Sale | |||||||||
Torrey Santa Fe Properties (2)(3) | Del Mar | Office | 4 | 465,812 |
(1) | In |
(2) | The Torrey Santa Fe Properties include the following properties: 7525 Torrey Santa Fe, 7535 Torrey Santa Fe, 7545 Torrey Santa Fe, and 7555 Torrey Santa Fe. |
(3) | In |
December 31, 2016 | December 31, 2015 | ||||||
Real estate assets and other assets held for sale | (in thousands) | ||||||
Land and improvements | $ | 2,693 | $ | 10,534 | |||
Buildings and improvements | 10,500 | 144,716 | |||||
Undeveloped land and construction in progress | — | 4,824 | |||||
Total real estate held for sale | 13,193 | 160,074 | |||||
Accumulated depreciation and amortization | (3,900 | ) | (46,191 | ) | |||
Total real estate held for sale, net | 9,293 | 113,883 | |||||
Deferred rent receivables, net | — | 2,500 | |||||
Deferred leasing costs and acquisition-related intangible assets, net | — | 1,115 | |||||
Prepaid expenses and other assets, net | 124 | 168 | |||||
Real estate and other assets held for sale, net | $ | 9,417 | $ | 117,666 | |||
Liabilities and deferred revenue of real estate assets held for sale | |||||||
Secured debt | $ | — | $ | 561 | |||
Accounts payable, accrued expenses and other liabilities | 56 | 2,497 | |||||
Deferred revenue and acquisition-related intangible liabilities, net | — | 2,899 | |||||
Rents received in advance and tenant security deposits | — | 1,586 | |||||
Liabilities and deferred revenue of real estate assets held for sale | $ | 56 | $ | 7,543 |
Phase I | Phase II | Total | |||||||||
Assets | |||||||||||
Undeveloped land and construction in progress | $ | 11,222 | $ | 17,000 | $ | 28,222 | |||||
Total assets | 11,222 | 17,000 | 28,222 | ||||||||
Liabilities | |||||||||||
Secured debt (1) | 1,750 | — | 1,750 | ||||||||
Accounts payable, accrued expenses and other liabilities | 1,952 | 1,475 | 3,427 | ||||||||
Total liabilities | 3,702 | 1,475 | 5,177 | ||||||||
Noncontrolling interest in consolidated subsidiary | 4,885 | — | 4,885 | ||||||||
Net assets and liabilities acquired | $ | 2,635 | $ | 15,525 | $ | 18,160 |
Properties | Submarket | Month of Disposition | Gross Site Acreage (unaudited) | Sales Price(1) (in millions) | ||||||
2016 Land Dispositions | ||||||||||
Carlsbad Oaks - Lot 7 (2) | Carlsbad | January | 7.6 | $ | 4.5 | |||||
Carlsbad Oaks - Lots 4 & 5 | Carlsbad | June | 11.2 | 6.0 | ||||||
Carlsbad Oaks - Lot 8 | Carlsbad | June | 13.2 | 8.9 | ||||||
Total 2016 Land Dispositions (3)(4) | 32.0 | $ | 19.4 | |||||||
2015 Land Disposition | ||||||||||
17150 Von Karman (4) | Irvine | January | 8.5 | $ | 26.0 | |||||
2014 Land Disposition | ||||||||||
10850 Via Frontera (4) | Rancho Bernardo | April | 21.0 | $ | 33.1 |
(1) | Represents gross sales price before the impact of commissions and closing costs. |
(2) | This |
(3) | In connection with these land dispositions, $2.3 million of secured debt was assumed by the buyers. See Note 9 “Secured and Unsecured Debt of the Operating Partnership” for additional information. |
(4) | The 2016 land dispositions resulted in a net loss on sales of $0.3 million and the 2015 and 2014 land dispositions resulted in gain on sales of $17.3 million and $3.5 million, respectively. |
Properties | Submarket | Gross Site Acreage (unaudited) | Sales Price (in millions) | |||||
2015 Held for Sale | ||||||||
Carlsbad Oaks - Lot 7 (1) | Carlsbad | 7.6 | $ | 4.5 | ||||
(1) | During the year ended December 31, 2015, the Company recognized a loss relating to selling costs of approximately $0.2 million. |
Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net |
December 31, 2014 | December 31, 2013 | December 31, 2016 | December 31, 2015 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Deferred Leasing Costs and Acquisition-related Intangible Assets, net: | ||||||||||||||
Deferred leasing costs | $ | 216,102 | $ | 178,720 | $ | 239,958 | $ | 205,888 | ||||||
Accumulated amortization | (74,904 | ) | (63,246 | ) | (89,633 | ) | (72,745 | ) | ||||||
Deferred leasing costs, net | 141,198 | 115,474 | 150,325 | 133,143 | ||||||||||
Above-market operating leases | 20,734 | 27,635 | 10,304 | 10,989 | ||||||||||
Accumulated amortization | (13,952 | ) | (14,283 | ) | (6,933 | ) | (6,739 | ) | ||||||
Above-market operating leases, net | 6,782 | 13,352 | 3,371 | 4,250 | ||||||||||
In-place leases | 97,250 | 100,318 | 94,813 | 72,639 | ||||||||||
Accumulated amortization | (43,773 | ) | (42,999 | ) | (40,593 | ) | (33,810 | ) | ||||||
In-place leases, net | 53,477 | 57,319 | 54,220 | 38,829 | ||||||||||
Below-market ground lease obligation | 490 | 490 | 490 | 490 | ||||||||||
Accumulated amortization | (21 | ) | (13 | ) | (38 | ) | (29 | ) | ||||||
Below-market ground lease obligation, net | 469 | 477 | 452 | 461 | ||||||||||
Total deferred leasing costs and acquisition-related intangible assets, net | $ | 201,926 | $ | 186,622 | $ | 208,368 | $ | 176,683 | ||||||
Acquisition-related Intangible Liabilities, net: | ||||||||||||||
Below-market operating leases | $ | 68,051 | $ | 69,385 | $ | 69,472 | $ | 53,502 | ||||||
Accumulated amortization | (30,620 | ) | (25,706 | ) | (33,689 | ) | (27,074 | ) | ||||||
Below-market operating leases, net | 37,431 | 43,679 | 35,783 | 26,428 | ||||||||||
Above-market ground lease obligation | 6,320 | 6,320 | 6,320 | 6,320 | ||||||||||
Accumulated amortization | (324 | ) | (223 | ) | (525 | ) | (424 | ) | ||||||
Above-market ground lease obligation, net | 5,996 | 6,097 | 5,795 | 5,896 | ||||||||||
Total acquisition-related intangible liabilities, net | $ | 43,427 | $ | 49,776 | $ | 41,578 | $ | 32,324 |
(1) | Excludes deferred leasing costs and acquisition-related intangible assets, net related to properties held for sale as of December 31, 2015. |
(2) | Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2016 | 2015 | 2014 | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Deferred leasing costs (1) | $ | 27,555 | $ | 25,902 | $ | 20,804 | $ | 28,639 | $ | 27,866 | $ | 27,555 | ||||||||||
Above-market operating leases (2) | 5,303 | 5,664 | 5,695 | 1,509 | 2,532 | 5,303 | ||||||||||||||||
In-place leases (1) | 21,628 | 29,363 | 21,976 | 11,676 | 14,622 | 21,628 | ||||||||||||||||
Below-market ground lease obligation (3) | 8 | 8 | 205 | 8 | 8 | 8 | ||||||||||||||||
Below-market operating leases (4) | (13,238 | ) | (13,441 | ) | (12,393 | ) | (8,674 | ) | (10,980 | ) | (13,238 | ) | ||||||||||
Above-market ground lease obligation (5) | (101 | ) | (101 | ) | (85 | ) | (101 | ) | (101 | ) | (101 | ) | ||||||||||
Total | $ | 41,155 | $ | 47,395 | $ | 36,202 | $ | 33,057 | $ | 33,947 | $ | 41,155 |
(1) | The amortization of deferred leasing costs and in-place leases is recorded to depreciation and amortization expense and the amortization of lease incentives is recorded as a reduction to rental income in the consolidated statements of operations for the periods presented. |
(2) | The amortization of above-market operating leases is recorded as a decrease to rental income in the consolidated statements of operations for the periods presented. |
(3) | The amortization of the below-market ground lease obligation is recorded as an increase to ground lease expense in the consolidated statements of operations for the periods presented. |
(4) | The amortization of below-market operating leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented. |
(5) | The amortization of the above-market ground lease obligation is recorded as a decrease to ground lease expense in the consolidated statements of operations for the periods presented. |
Year | Deferred Leasing Costs | Above-Market Operating Leases (1) | In-Place Leases | Below-Market Ground Lease Obligation (2) | Below-Market Operating Leases (3) | Above-Market Ground Lease Obligation (4) | Deferred Leasing Costs | Above-Market Operating Leases (1) | In-Place Leases | Below-Market Ground Lease Obligation (2) | Below-Market Operating Leases (3) | Above-Market Ground Lease Obligation (4) | ||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 27,848 | $ | 2,530 | $ | 13,896 | $ | 8 | $ | (9,886 | ) | $ | (101 | ) | ||||||||||||||||||||||||||||||||
2016 | 25,051 | 1,503 | 10,922 | 8 | (8,403 | ) | (101 | ) | ||||||||||||||||||||||||||||||||||||||
2017 | 22,128 | 1,241 | 9,281 | 8 | (7,337 | ) | (101 | ) | $ | 29,190 | $ | 1,298 | $ | 18,366 | $ | 8 | $ | (10,633 | ) | $ | (101 | ) | ||||||||||||||||||||||||
2018 | 18,580 | 831 | 6,373 | 8 | (5,735 | ) | (101 | ) | 25,761 | 869 | 13,556 | 8 | (9,116 | ) | (101 | ) | ||||||||||||||||||||||||||||||
2019 | 14,227 | 643 | 4,714 | 8 | (3,597 | ) | (101 | ) | 21,397 | 681 | 8,856 | 8 | (6,519 | ) | (101 | ) | ||||||||||||||||||||||||||||||
2020 | 16,703 | 53 | 5,739 | 8 | (3,676 | ) | (101 | ) | ||||||||||||||||||||||||||||||||||||||
2021 | 12,590 | 53 | 2,505 | 8 | (1,031 | ) | (101 | ) | ||||||||||||||||||||||||||||||||||||||
Thereafter | 33,364 | 34 | 8,291 | 429 | (2,473 | ) | (5,491 | ) | 44,684 | 417 | 5,198 | 412 | (4,808 | ) | (5,290 | ) | ||||||||||||||||||||||||||||||
Total | $ | 141,198 | $ | 6,782 | $ | 53,477 | $ | 469 | $ | (37,431 | ) | $ | (5,996 | ) | $ | 150,325 | $ | 3,371 | $ | 54,220 | $ | 452 | $ | (35,783 | ) | $ | (5,795 | ) |
(1) | Represents estimated annual amortization related to above-market operating leases. Amounts will be recorded as a decrease to rental income in the consolidated statements of operations. |
(2) | Represents estimated annual amortization related to below-market ground lease obligations. Amounts will be recorded as an increase to ground lease expense in the consolidated statements of operations. |
(3) | Represents estimated annual amortization related to below-market operating leases. Amounts will be recorded as an increase to rental income in the consolidated statements of operations. |
(4) | Represents estimated annual amortization related to above-market ground lease obligations. Amounts will be recorded as a decrease to ground lease expense in the consolidated statements of operations. |
Receivables |
December 31, 2014 | December 31, 2013 | December 31, 2016 | December 31, 2015 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Current receivables | $ | 9,228 | $ | 12,866 | $ | 15,172 | $ | 13,233 | ||||||
Allowance for uncollectible tenant receivables | (1,999 | ) | (2,123 | ) | (1,712 | ) | (2,080 | ) | ||||||
Current receivables, net | $ | 7,229 | $ | 10,743 | $ | 13,460 | $ | 11,153 |
December 31, 2014 | December 31, 2013 | December 31, 2016 | December 31, 2015 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Deferred rent receivables | $ | 158,405 | $ | 129,198 | $ | 220,501 | $ | 191,586 | ||||||
Allowance for deferred rent receivables | (1,989 | ) | (2,075 | ) | (1,524 | ) | (1,882 | ) | ||||||
Deferred rent receivables, net | $ | 156,416 | $ | 127,123 | $ | 218,977 | $ | 189,704 |
(1) | Excludes deferred rent receivables, net related to real estate held for sale as of December 31, 2015. |
7. | Prepaid Expenses and Other Assets, Net |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Furniture, fixtures and other long-lived assets, net | $ | 40,395 | $ | 11,324 | |||
Notes receivable (1) | 19,439 | 3,056 | |||||
Prepaid expenses | 10,774 | 12,853 | |||||
Total Prepaid Expenses and Other Assets, Net | $ | 70,608 | $ | 27,233 |
(1) | Approximately $15.1 million of our notes receivables are secured by real estate. |
Annual Stated Interest Rate (1) | GAAP Effective Rate (1)(2) | Maturity Date | December 31, | ||||||||||
Type of Debt | 2014 (3) | 2013 (3) | |||||||||||
(in thousands) | |||||||||||||
Mortgage note payable | 4.27% | 4.27% | February 2018 | $ | 130,767 | $ | 133,117 | ||||||
Mortgage note payable | 4.48% | 4.48% | July 2027 | 97,000 | 97,000 | ||||||||
Mortgage note payable (4) | 6.05% | 3.50% | June 2019 | 89,242 | 92,502 | ||||||||
Mortgage note payable | 6.51% | 6.51% | February 2017 | 66,647 | 67,663 | ||||||||
Mortgage note payable | 5.23% | 3.50% | January 2016 | 52,793 | 54,570 | ||||||||
Mortgage note payable | 5.57% | 3.25% | February 2016 | 40,258 | 41,654 | ||||||||
Mortgage note payable | 5.09% | 3.50% | August 2015 | 34,311 | 34,845 | ||||||||
Mortgage note payable | 4.94% | 4.00% | April 2015 | 26,285 | 27,641 | ||||||||
Mortgage note payable | 7.15% | 7.15% | May 2017 | 6,568 | 8,972 | ||||||||
Other | Various | Various | Various | 2,421 | 2,470 | ||||||||
Total | $ | 546,292 | $ | 560,434 |
Annual Stated Interest Rate (1) | GAAP Effective Rate (1)(2) | Maturity Date | December 31, | ||||||||||
Type of Debt | 2016 | 2015 | |||||||||||
(in thousands) | |||||||||||||
Mortgage note payable (3) | 3.57% | 3.57% | December 2026 | $ | 170,000 | $ | — | ||||||
Mortgage note payable (4) | 4.27% | 4.27% | February 2018 | 125,756 | 128,315 | ||||||||
Mortgage note payable (4) | 4.48% | 4.48% | July 2027 | 94,754 | 96,354 | ||||||||
Mortgage note payable (4)(5) | 6.05% | 3.50% | June 2019 | 82,443 | 85,890 | ||||||||
Mortgage note payable (6) | 7.15% | 7.15% | May 2017 | 1,215 | 3,987 | ||||||||
Mortgage note payable (7) | 6.51% | 6.51% | February 2017 | — | 65,563 | ||||||||
Other (8) | Various | Various | Various | — | 1,809 | ||||||||
Total secured debt | $ | 474,168 | $ | 381,918 | |||||||||
Unamortized Deferred Financing Costs | (1,396 | ) | (1,083 | ) | |||||||||
Total secured debt, net | $ | 472,772 | $ | 380,835 |
(1) | All interest rates presented are fixed-rate interest rates. |
(2) |
(3) |
(4) |
(5) | As of December 31, |
(6) | This mortgage note payable was repaid in February 2017 at par. |
(7) | This mortgage note payable was repaid in December 2016 at par. |
(8) | Balance of $1.8 million as of December 31, 2015 included public facility bonds that were assumed by the buyers in connection with sales of land during the year ended December 31, 2016. |
4.25% Exchangeable Notes | December 31, | ||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Principal amount | $ | — | $ | 172,500 | |||
Unamortized discount | — | (4,128 | ) | ||||
Net carrying amount of liability component | $ | — | $ | 168,372 | |||
Carrying amount of equity component | $19,835 | ||||||
Issuance date | November 2009 | ||||||
Maturity date | November 2014 | ||||||
Stated coupon rate (1) | 4.25% | ||||||
Effective interest rate (2) | 7.13% | ||||||
Exchange rate per $1,000 principal value of the 4.25% Exchangeable Notes, as adjusted (3) | 27.8307 | ||||||
Exchange price as adjusted (3) | $35.93 | ||||||
Number of shares on which the aggregate consideration to be delivered on conversion (3) | 4,800,796 |
Period Ended November 15, 2014(1) | Year Ended December 31, 2013 | ||||||
Per share average trading price of the Company's common stock | $ | 60.04 | $ | 52.12 |
Year Ended December 31, 2013 | ||||
Approximate fair value of shares upon conversion | $ | 247,000 | ||
Principal amount of the 4.25% Exchangeable Notes | 172,500 | |||
Approximate fair value in excess amount of principal amount | $ | 74,500 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Contractual interest payments (1) | $ | 5,608 | $ | 7,331 | $ | 8,721 | |||||
Amortization of discount (1) | 3,769 | 4,427 | 5,052 | ||||||||
Interest expense attributable to the Exchangeable Notes (1) | $ | 9,377 | $ | 11,758 | $ | 13,773 |
Principal Amount as of December 31, | |||||||||||||||
Issuance date | Maturity date | Stated coupon rate | Effective interest rate (1) | 2014 | 2013 | ||||||||||
(in thousands) | |||||||||||||||
4.250% Unsecured Senior Notes (2) | July 2014 | August 2029 | 4.250% | 4.350% | $ | 400,000 | $ | — | |||||||
Unamortized discount | (4,348 | ) | — | ||||||||||||
Net carrying amount | $ | 395,652 | $ | — | |||||||||||
3.800% Unsecured Senior Notes (3) | January 2013 | January 2023 | 3.800% | 3.804% | $ | 300,000 | $ | 300,000 | |||||||
Unamortized discount | (79 | ) | (90 | ) | |||||||||||
Net carrying amount | $ | 299,921 | $ | 299,910 | |||||||||||
4.800% Unsecured Senior Notes (4) | July 2011 | July 2018 | 4.800% | 4.827% | $ | 325,000 | $ | 325,000 | |||||||
Unamortized discount | (265 | ) | (339 | ) | |||||||||||
Net carrying amount | $ | 324,735 | $ | 324,661 | |||||||||||
6.625% Unsecured Senior Notes (5) | May 2010 | June 2020 | 6.625% | 6.743% | $ | 250,000 | $ | 250,000 | |||||||
Unamortized discount | (1,154 | ) | (1,367 | ) | |||||||||||
Net carrying amount | $ | 248,846 | $ | 248,633 | |||||||||||
5.000% Unsecured Senior Notes (6) | November 2010 | November 2015 | 5.000% | 5.014% | $ | 325,000 | $ | 325,000 | |||||||
Unamortized discount | (33 | ) | (73 | ) | |||||||||||
Net carrying amount | $ | 324,967 | $ | 324,927 |
Net Carrying Amount as of December 31, | |||||||||||||||
Issuance date | Maturity date | Stated coupon rate | Effective interest rate (1) | 2016 | 2015 | ||||||||||
(in thousands) | |||||||||||||||
4.375% Unsecured Senior Notes (2) | September 2015 | October 2025 | 4.375% | 4.440% | $ | 400,000 | $ | 400,000 | |||||||
Unamortized discount and deferred financing costs | (4,846 | ) | (5,400 | ) | |||||||||||
Net carrying amount | $ | 395,154 | $ | 394,600 | |||||||||||
4.250% Unsecured Senior Notes (3) | July 2014 | August 2029 | 4.250% | 4.350% | $ | 400,000 | $ | 400,000 | |||||||
Unamortized discount and deferred financing costs | (6,696 | ) | (7,228 | ) | |||||||||||
Net carrying amount | $ | 393,304 | $ | 392,772 | |||||||||||
3.800% Unsecured Senior Notes (4) | January 2013 | January 2023 | 3.800% | 3.804% | $ | 300,000 | $ | 300,000 | |||||||
Unamortized discount and deferred financing costs | (1,656 | ) | (1,931 | ) | |||||||||||
Net carrying amount | $ | 298,344 | $ | 298,069 | |||||||||||
4.800% Unsecured Senior Notes (4)(5) | July 2011 | July 2018 | 4.800% | 4.827% | $ | 325,000 | $ | 325,000 | |||||||
Unamortized discount and deferred financing costs | (767 | ) | (1,251 | ) | |||||||||||
Net carrying amount | $ | 324,233 | $ | 323,749 | |||||||||||
6.625% Unsecured Senior Notes (6) | May 2010 | June 2020 | 6.625% | 6.743% | $ | 250,000 | $ | 250,000 | |||||||
Unamortized discount and deferred financing costs | (1,868 | ) | (2,414 | ) | |||||||||||
Net carrying amount | $ | 248,132 | $ | 247,586 | |||||||||||
Total Unsecured Senior Notes, Net | $ | 1,659,167 | $ | 1,656,776 | |||||||||||
(1) |
(2) | Interest on |
(3) | Interest on these notes is payable semi-annually in arrears on February 15th and August 15th of each year. |
(4) | Interest on |
(5) | In October 2015, certain common limited partners in the Operating Partnership that previously contributed their interests in the property at 6255 W. Sunset Blvd., Los Angeles, California to the Operating Partnership entered into an agreement with the Company. Pursuant to this agreement, such common limited partners will reimburse the Company for a portion of any amounts the Company may be required to pay pursuant to its guarantee of the Operating Partnership's 4.800% Senior Notes due 2018 or that the Company may otherwise become required to pay under applicable law with respect to such notes. |
(6) | Interest on |
December 31, 2014 | December 31, 2013 | December 31, 2016 | December 31, 2015 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Outstanding borrowings | $ | 140,000 | $ | 45,000 | $ | — | $ | — | ||||||
Remaining borrowing capacity | 460,000 | 455,000 | 600,000 | 600,000 | ||||||||||
Total borrowing capacity (1) | $ | 600,000 | $ | 500,000 | $ | 600,000 | $ | 600,000 | ||||||
Interest rate | 1.41 | % | 1.62 | % | 1.82 | % | 1.48 | % | ||||||
Facility fee-annual rate | 0.250% | 0.300% | 0.200% | |||||||||||
Maturity date | July 2019 | April 2017 | July 2019 |
(1) | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility. |
(2) |
(3) |
Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of December 31, |
December 31, 2014 | December 31, 2013 | December 31, 2016 | December 31, 2015 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Outstanding borrowings | $ | 150,000 | $ | 150,000 | $ | 150,000 | $ | 150,000 | ||||||
Interest rate (1)(2) | 1.56 | % | 1.92 | % | ||||||||||
Interest rate (2) | 1.85 | % | 1.40 | % | ||||||||||
Maturity date | July 2019 | March 2016 | July 2019 |
(1) |
(2) | Our unsecured term loan facility interest rate was calculated based on an annual rate of LIBOR plus |
Year | (in thousands) | ||
2017 | $ | 7,286 | |
2018 | 451,669 | ||
2019 | 265,309 | ||
2020 | 255,137 | ||
2021 | 5,342 | ||
Thereafter | 1,349,023 | ||
Total aggregate principal value (1)(2) | $ | 2,333,766 |
(1) | Includes gross principal balance of outstanding debt before the effect of the following at December 31, 2016: $11.5 million of unamortized deferred financing costs, $6.6 million of unamortized discounts for the unsecured senior notes and $4.4 million of unamortized premiums for the secured debt. |
(2) | Excludes the Series A and B Notes issuable pursuant to the Note Purchase Agreement entered into in September 2016 as no Series A or B Notes were issued and outstanding under these notes as of December 31, 2016. |
Year | (in thousands) | ||
2015 | $ | 395,103 | |
2016 | 99,431 | ||
2017 | 71,748 | ||
2018 | 451,728 | ||
2019 | 405,369 | ||
Thereafter | 1,041,643 | ||
Total (1) | $ | 2,465,022 |
For the respective reporting periods noted below, which preceding maturity of the 4.25% Exchangeable Notes on November 15, 2014, the per share average trading price of the Company's common stock on the NYSE was higher than the $35.93 exchange price for the 4.25% Exchangeable Notes, as presented in the table below. See Note 22 “Net Income Available to Common Stockholders Per Share of the Company” and Note 23 “Net Income Available to Common Unitholders Per Unit of the Operating Partnership” for a discussion of the impact of the 4.25% Exchangeable Notes on our diluted earnings per share and unit calculations for the year ended December 31, 2014.
_______________ (1) Represents the maturity date of the 4.25% Exchangeable Notes. KILROY REALTY CORPORATION AND KILROY REALTY, L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2016 | 2015 | 2014 | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Gross interest expense | $ | 114,661 | $ | 111,238 | $ | 98,906 | $ | 105,263 | $ | 109,647 | $ | 114,661 | ||||||||||
Capitalized interest | (47,090 | ) | (35,368 | ) | (19,792 | ) | (49,460 | ) | (51,965 | ) | (47,090 | ) | ||||||||||
Interest expense | $ | 67,571 | $ | 75,870 | $ | 79,114 | $ | 55,803 | $ | 57,682 | $ | 67,571 |
Deferred Revenue and Acquisition Related Liabilities, net |
December 31, | December 31, | |||||||||||||
2014 | 2013 | 2016 | 2015 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Deferred revenue related to tenant-funded tenant improvements (1) | $ | 85,757 | $ | 48,341 | $ | 99,489 | $ | 90,825 | ||||||
Other deferred revenue | 3,055 | 3,169 | 9,293 | 5,007 | ||||||||||
Acquisition-related intangible liabilities, net (2) | 43,427 | 49,776 | 41,578 | 32,324 | ||||||||||
Total | $ | 132,239 | $ | 101,286 | $ | 150,360 | $ | 128,156 |
(1) | Excludes deferred revenue related to tenant-funded tenant improvements related to properties held for sale at December 31, |
(2) | See Note 2 “Basis of Presentation and Significant Accounting Policies” and Note |
Year Ending | (in thousands) | (in thousands) | ||||
2015 | $ | 12,402 | ||||
2016 | 11,955 | |||||
2017 | 10,802 | $ | 14,453 | |||
2018 | 9,177 | 13,891 | ||||
2019 | 7,780 | 12,349 | ||||
2020 | 11,767 | |||||
2021 | 10,524 | |||||
Thereafter | 33,641 | 36,505 | ||||
Total | $ | 85,757 | $ | 99,489 |
Stockholders’ Equity of the Company |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in millions, except share data) | |||||||||||
Shares of common stock sold during the period | 1,599,123 | 1,040,838 | 787,118 | ||||||||
Aggregate gross proceeds | $ | 104.7 | $ | 55.3 | $ | 37.0 | |||||
Aggregate net proceeds after sales agent compensation | $ | 103.1 | $ | 54.4 | $ | 36.3 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions, except share data) | |||||||||||
Shares of common stock sold during the period | 451,398 | 1,866,267 | 1,599,123 | ||||||||
Aggregate gross proceeds | $ | 32.3 | $ | 140.1 | $ | 104.7 | |||||
Aggregate net proceeds after selling commissions | $ | 31.9 | $ | 138.2 | $ | 103.1 |
December 31, | December 31, | |||||||||||||
2014 | 2013 | 2016 | 2015 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Dividends and Distributions payable to: | ||||||||||||||
Common stockholders | $ | 30,191 | $ | 28,754 | $ | 212,074 | $ | 32,291 | ||||||
Noncontrolling common unitholders of the Operating Partnership | 631 | 632 | 5,418 | 618 | ||||||||||
RSU holders (1) | 421 | 405 | 3,158 | 427 | ||||||||||
Total accrued dividends and distribution to common stockholders and noncontrolling unitholders | 31,243 | 29,791 | 220,650 | 33,336 | ||||||||||
Preferred stockholders | 1,656 | 1,699 | 1,656 | 1,656 | ||||||||||
Total accrued dividends and distributions | $ | 32,899 | $ | 31,490 | $ | 222,306 | $ | 34,992 |
(1) | The amount includes the value of the dividend equivalents that will be paid with additional |
December 31, | December 31, | |||||||||
2014 | 2013 | 2016 | 2015 | |||||||
Outstanding Shares and Units: | ||||||||||
Common stock (1) | 86,259,684 | 82,153,944 | 93,219,439 | 92,258,690 | ||||||
Noncontrolling common units | 1,804,200 | 1,805,200 | 2,381,543 | 1,764,775 | ||||||
RSUs (2) | 1,248,352 | 1,158,407 | 1,395,189 | 1,269,809 | ||||||
Series G Preferred stock | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | ||||||
Series H Preferred stock | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 |
(1) | The amount includes nonvested shares. |
(2) | The amount includes nonvested RSUs. Does not include the |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in millions, except share and per share data) | |||||||||||
Shares of common stock contributed by the Company | 1,599,123 | 1,040,838 | 787,118 | ||||||||
Common units exchanged for share of common stock by the Company | 1,599,123 | 1,040,838 | 787,118 | ||||||||
Aggregate gross proceeds | $ | 104.7 | $ | 55.3 | $ | 37.0 | |||||
Aggregate net proceeds after sales agent compensation | $ | 103.1 | $ | 54.4 | $ | 36.3 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions, except share and per share data) | |||||||||||
Shares of common stock contributed by the Company | 451,398 | 1,866,267 | 1,599,123 | ||||||||
Common units exchanged for shares of common stock by the Company | 451,398 | 1,866,267 | 1,599,123 | ||||||||
Aggregate gross proceeds | $ | 32.3 | $ | 140.1 | $ | 104.7 | |||||
Aggregate net proceeds after selling commissions | $ | 31.9 | $ | 138.2 | $ | 103.1 |
December 31, 2014 | December 31, 2013 | December 31, 2016 | December 31, 2015 | |||||||
Company owned common units in the Operating Partnership | 86,259,684 | 82,153,944 | 93,219,439 | 92,258,690 | ||||||
Company owned general partnership interest | 98.0 | % | 97.8 | % | 97.5 | % | 98.1 | % | ||
Noncontrolling common units of the Operating Partnership | 1,804,200 | 1,805,200 | 2,381,543 | 1,764,775 | ||||||
Ownership interest of noncontrolling interest | 2.0 | % | 2.2 | % | 2.5 | % | 1.9 | % |
December 31, 2014 | December 31, 2013 | December 31, 2016 | December 31, 2015 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Distributions payable to: | ||||||||||||||
General partner | $ | 30,191 | $ | 28,754 | $ | 212,074 | $ | 32,291 | ||||||
Common limited partners | 631 | 632 | 5,418 | 618 | ||||||||||
RSU holders (1) | 421 | 405 | 3,158 | 427 | ||||||||||
Total accrued distributions to common unitholders | 31,243 | 29,791 | 220,650 | 33,336 | ||||||||||
Preferred unitholders | 1,656 | 1,699 | 1,656 | 1,656 | ||||||||||
Total accrued distributions | $ | 32,899 | $ | 31,490 | $ | 222,306 | $ | 34,992 |
(1) | The amount includes the value of the dividend equivalents that will be paid with additional |
December 31, 2014 | December 31, 2013 | December 31, 2016 | December 31, 2015 | |||||||
Outstanding Units: | ||||||||||
Common units held by the general partner | 86,259,684 | 82,153,944 | 93,219,439 | 92,258,690 | ||||||
Common units held by the limited partners | 1,804,200 | 1,805,200 | 2,381,543 | 1,764,775 | ||||||
RSUs (1) | 1,248,352 | 1,158,407 | 1,395,189 | 1,269,809 | ||||||
Series G Preferred units | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | ||||||
Series H Preferred units | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 |
(1) | Does not include the |
2016 Performance-Based RSU Grant | 2015 Performance-Based RSU Grant | ||||
Service vesting period | January 28, 2016 - January 5, 2019 | January 27, 2015 - January 5, 2018 | |||
Target RSUs granted | 168,077 | 127,657 | |||
Estimated RSUs earned based on FFO per share performance condition | 241,438 | 185,510 | |||
Date of fair valuation | January 28, 2016 | January 27, 2015 |
2016 Award Fair Value Assumptions | 2015 Award Fair Value Assumptions | |
Valuation date | January 28, 2016 | January 27, 2015 |
Fair value per share on valuation date | $57.08 | $78.55 |
Expected share price volatility | 26.00% | 20.00% |
Risk-free interest rate | 1.13% | 0.92% |
Remaining expected life | 2.9 years | 2.9 years |
2016 Time-Based RSU Grant | 2015 Time-Based RSU Grant | ||||||
Service vesting period | January 28, 2016 - January 5, 2019 | January 27, 2015 - January 5, 2018 | |||||
Fair value on valuation date (in millions) | $ | 7.1 | $ | 6.4 | |||
Fair value per share | $ | 56.23 | $ | 75.34 | |||
Date of fair valuation | January 28, 2016 | January 27, 2015 |
Nonvested RSUs | Vested RSUs | Total RSUs | ||||||||||
Amount | Weighted-Average Fair Value Per Share (1) | |||||||||||
Outstanding at January 1, 2014 | 143,022 | $ | 46.47 | — | 143,022 | |||||||
Granted (2) | 183,365 | 64.86 | — | 183,365 | ||||||||
Vested (3) | (16,338 | ) | 41.53 | 16,338 | — | |||||||
Settled (4) | (16,338 | ) | (16,338 | ) | ||||||||
Transferred to time-based restricted stock units (5) | (31,455 | ) | 53.05 | — | (31,455 | ) | ||||||
Transferred to restricted stock (6) | (31,505 | ) | 53.05 | — | (31,505 | ) | ||||||
Outstanding as of December 31, 2014 | 247,089 | $ | 58.77 | — | 247,089 |
Nonvested RSUs | Vested RSUs | Total RSUs | ||||||||||
Amount | Weighted-Average Fair Value Per Share (1) | |||||||||||
Outstanding at January 1, 2016 | 425,452 | $ | 67.68 | — | 425,452 | |||||||
Granted | 258,393 | 57.36 | — | 258,393 | ||||||||
Vested | (36,914 | ) | 43.53 | 36,914 | — | |||||||
Settled (2) | (36,914 | ) | (36,914 | ) | ||||||||
Issuance of dividend equivalents (3) | 12,120 | 65.50 | — | 12,120 | ||||||||
Outstanding as of December 31, 2016 (4) | 659,051 | $ | 64.95 | — | 659,051 |
(1) | Represents the grant-date fair value for all awards, excluding the 2014 Performance-Based RSU |
(2) |
Represents vested RSUs that were settled in |
RSUs Granted | RSUs Vested | RSUs Granted | RSUs Vested | |||||||||||||||||||||||
Years ended December 31, | Non-Vested RSUs Granted | Weighted-Average Fair Value Per Share (1) | Vested RSUs | Total Vest-Date Fair Value (in thousands) | Non-Vested RSUs Granted | Weighted-Average Fair Value Per Share (1) | Vested RSUs | Total Vest-Date Fair Value (in thousands) | ||||||||||||||||||
2016 | 258,393 | $ | 57.36 | (36,914 | ) | $ | 2,788 | |||||||||||||||||||
2015 | 191,483 | 79.25 | — | — | ||||||||||||||||||||||
2014 | 183,365 | $ | 64.86 | (16,338 | ) | $ | 1,092 | 183,365 | 64.86 | (16,338 | ) | 1,092 | ||||||||||||||
2013 | 9,542 | 44.55 | (16,338 | ) | 811 | |||||||||||||||||||||
2012 | 103,239 | 41.20 | (14,748 | ) | 695 |
(1) | Represents the grant-date fair value for all awards, excluding the 2014 Performance-Based RSU |
Nonvested RSUs | Vested RSUs | Total RSUs | ||||||||||
Amount | Weighted Average Fair Value Per Share (1) | |||||||||||
Outstanding at January 1, 2014 | 301,660 | $ | 44.74 | 856,747 | 1,158,407 | |||||||
Granted (2) | 155,016 | 59.89 | — | 155,016 | ||||||||
Vested (3)(4) | (116,447 | ) | 47.64 | 116,447 | — | |||||||
Settled | (61,242 | ) | (61,242 | ) | ||||||||
Canceled (5) | (3,992 | ) | (3,992 | ) | ||||||||
Transferred from market-measure based (6) | 31,455 | 53.05 | 31,455 | |||||||||
Transferred to restricted stock (7) | (30,687 | ) | 48.88 | (605 | ) | (31,292 | ) | |||||
Outstanding as of December 31, 2014 | 340,997 | $ | 51.04 | 907,355 | 1,248,352 |
Nonvested RSUs | Vested RSUs | Total RSUs | ||||||||||
Amount | Weighted Average Fair Value Per Share (1) | |||||||||||
Outstanding at January 1, 2016 | 318,449 | $ | 58.91 | 951,360 | 1,269,809 | |||||||
Granted | 173,747 | 58.29 | — | 173,747 | ||||||||
Vested | (130,784 | ) | 57.91 | 130,784 | — | |||||||
Settled (2) | (72,148 | ) | (72,148 | ) | ||||||||
Issuance of dividend equivalents (3) | 5,027 | 65.78 | 23,243 | 28,270 | ||||||||
Canceled (4) | (4,489 | ) | (4,489 | ) | ||||||||
Outstanding as of December 31, 2016 | 366,439 | $ | 59.07 | 1,028,750 | 1,395,189 |
(1) | Represents the grant-date fair value for all awards, excluding the 2014 |
(2) |
Represents vested RSUs that were settled in shares of the Company’s common stock. Total shares settled include |
Represents the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreement. |
(4) | For shares vested but not yet settled, we accept the return of RSUs at the current quoted closing share price of the Company’s common stock to satisfy minimum statutory tax-withholding requirements related to either the |
RSUs Granted | RSUs Vested | RSUs Granted | RSUs Vested | |||||||||||||||||||||||
Year ended December 31, | Non-Vested RSUs Issued | Weighted-Average Grant Date Fair Value Per Share | Vested RSUs | Total Vest-Date Fair Value (1) (in thousands) | Non-Vested RSUs Issued | Weighted-Average Grant Date Fair Value Per Share | Vested RSUs | Total Vest-Date Fair Value (1) (in thousands) | ||||||||||||||||||
2016 | 173,747 | $ | 58.29 | (130,784 | ) | $ | 8,438 | |||||||||||||||||||
2015 | 98,802 | 74.49 | (107,541 | ) | 7,528 | |||||||||||||||||||||
2014 | 155,016 | $ | 59.89 | (116,447 | ) | $ | 6,675 | 155,016 | 59.89 | (116,447 | ) | 6,675 | ||||||||||||||
2013 | 173,758 | 49.45 | (89,873 | ) | 4,495 | |||||||||||||||||||||
2012 | 204,829 | 44.34 | (73,688 | ) | 3,118 |
(1) | Total fair value of RSUs vested was calculated based on the quoted closing share price of the Company’s common stock on the NYSE on the day of vesting. Excludes the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreement. |
Non-Vested Restricted Stock | Weighted-Average Grant Date Fair Value Per Share | |||||
Outstanding at January 1, 2014 | 47,950 | $ | 41.71 | |||
Granted (1) | 213 | 51.35 | ||||
Vested (2)(3) | (25,899 | ) | 45.56 | |||
Transferred from market-measure and time-based RSUs | 62,797 | 50.97 | ||||
Outstanding as of December 31, 2014 | 85,061 | $ | 47.05 |
Nonvested Restricted Stock | Weighted-Average Grant Date Fair Value Per Share | |||||
Outstanding at January 1, 2016 | 60,797 | $ | 47.32 | |||
Vested (1) | (24,262 | ) | 46.39 | |||
Outstanding as of December 31, 2016 | 36,535 | $ | 47.93 |
(1) |
The total shares vested |
Shares Granted | Shares Vested | Shares Granted | Shares Vested | |||||||||||||||||||||||
Years ended December 31, | Non-Vested Shares Issued | Weighted-Average Grant Date Fair Value Per Share | Vested Shares | Total Fair Value at Vest Date(1) (in thousands) | Nonvested Shares Issued | Weighted-Average Grant Date Fair Value Per Share | Vested Shares | Total Fair Value at Vest Date(1) (in thousands) | ||||||||||||||||||
2016 | — | $ | — | (24,262 | ) | $ | 1,527 | |||||||||||||||||||
2015 | — | — | (24,264 | ) | 1,725 | |||||||||||||||||||||
2014 | 213 | $ | 51.35 | (25,899 | ) | $ | 1,323 | 213 | 51.35 | (25,899 | ) | 1,323 | ||||||||||||||
2013 | — | — | (47,291 | ) | 2,290 | |||||||||||||||||||||
2012 | 62,137 | 41.84 | (50,862 | ) | 2,110 |
(1) | Total fair value of shares vested was calculated based on the quoted closing share price of the Company’s common stock on the NYSE on the date of vesting. |
February 2012 Option Grant | |
Fair value of options granted per share | $9.20 |
Expected stock price volatility | 33.00% |
Risk-free interest rate | 1.35% |
Dividend yield | 3.80% |
Expected life of option | 6.5 years |
Number of Options | Exercise Price | Intrinsic Value (in millions) (1) | ||||||||
Outstanding at December 31, 2013 | 1,525,000 | $ | 42.61 | $ | 11.5 | |||||
Exercised | (495,000 | ) | 42.61 | 9.6 | ||||||
Forfeited | (22,000 | ) | 42.61 | 0.4 | ||||||
Outstanding at December 31, 2014 (2) | 1,008,000 | $ | 42.61 | $ | 26.7 | |||||
Options exercisable at December 31, 2014 (3) | 114,000 | $ | 3.0 |
Number of Options | Exercise Price | Intrinsic Value (in millions) (1) | ||||||||
Outstanding at December 31, 2015 | 610,000 | $ | 42.61 | $ | 12.6 | |||||
Exercised | (286,500 | ) | 42.61 | 8.4 | ||||||
Forfeited | (9,000 | ) | 42.61 | 0.1 | ||||||
Outstanding at December 31, 2016 (2) | 314,500 | $ | 42.61 | $ | 9.6 | |||||
Options exercisable at December 31, 2016 (3) | 50,500 | $ | 42.61 | $ | 1.5 |
(1) | The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds the exercise price of an option. The fair value of the underlying stock was determined by using the closing share price on the NYSE on the date of exercise, forfeiture or respective period end. |
(2) | As of December 31, |
(3) | As of December 31, |
Employee Benefit Plans |
Future Minimum Rent |
Year Ending | (in thousands) | (in thousands) | ||||
2015 | $ | 428,302 | ||||
2016 | 447,163 | |||||
2017 | 414,397 | $ | 538,269 | |||
2018 | 367,745 | 537,891 | ||||
2019 | 306,878 | 493,998 | ||||
2020 | 424,791 | |||||
2021 | 370,941 | |||||
Thereafter | 1,217,370 | 1,901,303 | ||||
Total | $ | 3,181,855 | $ | 4,267,193 |
Excludes residential leases and leases with a term of one year or less. |
18. | Commitments and Contingencies |
Property | Contractual Expiration Date (1) |
601 108th Ave NE, Bellevue, WA | November 2093 |
701, 801 and 837 N. 34th Street, Seattle, WA (2) | December 2041 |
1701 Page Mill Road and 3150 Porter Drive, Palo Alto, CA | December 2067 |
Kilroy Airport Center Phases I, II, and III, Long Beach, CA | July 2084 |
(1) | Reflects the contractual expiration date prior to the impact of any extension or purchase options held by the Company. |
(2) | The Company has three 10 year and one 45 year extension |
Year Ending | (in thousands) | (in thousands) | ||||
2015 | $ | 3,120 | ||||
2016 | 3,120 | |||||
2017 | 3,120 | $ | 4,934 | |||
2018 | 3,120 | 4,934 | ||||
2019 | 3,120 | 4,934 | ||||
2020 | 4,934 | |||||
2021 | 4,934 | |||||
Thereafter | 154,358 | 231,402 | ||||
Total | $ | 169,958 | $ | 256,072 |
(2) | One of our ground lease obligations is subject to a fair market value adjustment every five years; however, the lease includes ground rent subprotection and infrastructure rent credits which currently limit our annual rental obligations to $1.0 million. The contractual obligations for that ground lease included above assumes the lesser of $1.0 million or annual lease rental obligation in effect as of December 31, |
(3) | One of our ground lease obligations includes a component which is based on the percentage of gross income that exceeds the minimum ground rent. The minimum rent is subject to increases every five years based on 50% of the average annual percentage rent for the previous five years. |
(4) | One of our ground lease obligations is subject to a fair market value adjustment every five years based on a combination of CPI adjustments and third-party appraisals limited to maximum increases annually. The contractual obligations included above assume the annual lease rental obligation in effect as of December 31, |
(5) | One of our ground lease obligations includes a component which is based on the percentage of adjusted gross income that exceeds the minimum ground rent. The minimum rent is subject to increases every 10 years by an amount equal to 60% of the average annual percentage rent for the previous three years. |
5. | Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Deferred Leasing Costs and Acquisition-related Intangible Assets, net:(1) | |||||||
Deferred leasing costs | $ | 239,958 | $ | 205,888 | |||
Accumulated amortization | (89,633 | ) | (72,745 | ) | |||
Deferred leasing costs, net | 150,325 | 133,143 | |||||
Above-market operating leases | 10,304 | 10,989 | |||||
Accumulated amortization | (6,933 | ) | (6,739 | ) | |||
Above-market operating leases, net | 3,371 | 4,250 | |||||
In-place leases | 94,813 | 72,639 | |||||
Accumulated amortization | (40,593 | ) | (33,810 | ) | |||
In-place leases, net | 54,220 | 38,829 | |||||
Below-market ground lease obligation | 490 | 490 | |||||
Accumulated amortization | (38 | ) | (29 | ) | |||
Below-market ground lease obligation, net | 452 | 461 | |||||
Total deferred leasing costs and acquisition-related intangible assets, net | $ | 208,368 | $ | 176,683 | |||
Acquisition-related Intangible Liabilities, net: (2) | |||||||
Below-market operating leases | $ | 69,472 | $ | 53,502 | |||
Accumulated amortization | (33,689 | ) | (27,074 | ) | |||
Below-market operating leases, net | 35,783 | 26,428 | |||||
Above-market ground lease obligation | 6,320 | 6,320 | |||||
Accumulated amortization | (525 | ) | (424 | ) | |||
Above-market ground lease obligation, net | 5,795 | 5,896 | |||||
Total acquisition-related intangible liabilities, net | $ | 41,578 | $ | 32,324 |
(1) | Excludes deferred leasing costs and acquisition-related intangible assets, net related to properties held for sale as of December 31, 2015. |
(2) | Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets. |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in thousands) | |||||||||||
Deferred leasing costs (1) | $ | 28,639 | $ | 27,866 | $ | 27,555 | |||||
Above-market operating leases (2) | 1,509 | 2,532 | 5,303 | ||||||||
In-place leases (1) | 11,676 | 14,622 | 21,628 | ||||||||
Below-market ground lease obligation (3) | 8 | 8 | 8 | ||||||||
Below-market operating leases (4) | (8,674 | ) | (10,980 | ) | (13,238 | ) | |||||
Above-market ground lease obligation (5) | (101 | ) | (101 | ) | (101 | ) | |||||
Total | $ | 33,057 | $ | 33,947 | $ | 41,155 |
(1) | The amortization of deferred leasing costs and in-place leases is recorded to depreciation and amortization expense and the amortization of lease incentives is recorded as a reduction to rental income in the consolidated statements of operations for the periods presented. |
(2) | The amortization of above-market operating leases is recorded as a decrease to rental income in the consolidated statements of operations for the periods presented. |
(3) | The amortization of the below-market ground lease obligation is recorded as an increase to ground lease expense in the consolidated statements of operations for the periods presented. |
(4) | The amortization of below-market operating leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented. |
(5) | The amortization of the above-market ground lease obligation is recorded as a decrease to ground lease expense in the consolidated statements of operations for the periods presented. |
Year | Deferred Leasing Costs | Above-Market Operating Leases (1) | In-Place Leases | Below-Market Ground Lease Obligation (2) | Below-Market Operating Leases (3) | Above-Market Ground Lease Obligation (4) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
2017 | $ | 29,190 | $ | 1,298 | $ | 18,366 | $ | 8 | $ | (10,633 | ) | $ | (101 | ) | |||||||||
2018 | 25,761 | 869 | 13,556 | 8 | (9,116 | ) | (101 | ) | |||||||||||||||
2019 | 21,397 | 681 | 8,856 | 8 | (6,519 | ) | (101 | ) | |||||||||||||||
2020 | 16,703 | 53 | 5,739 | 8 | (3,676 | ) | (101 | ) | |||||||||||||||
2021 | 12,590 | 53 | 2,505 | 8 | (1,031 | ) | (101 | ) | |||||||||||||||
Thereafter | 44,684 | 417 | 5,198 | 412 | (4,808 | ) | (5,290 | ) | |||||||||||||||
Total | $ | 150,325 | $ | 3,371 | $ | 54,220 | $ | 452 | $ | (35,783 | ) | $ | (5,795 | ) |
(1) | Represents estimated annual amortization related to above-market operating leases. Amounts will be recorded as a decrease to rental income in the consolidated statements of operations. |
(2) | Represents estimated annual amortization related to below-market ground lease obligations. Amounts will be recorded as an increase to ground lease expense in the consolidated statements of operations. |
(3) | Represents estimated annual amortization related to below-market operating leases. Amounts will be recorded as an increase to rental income in the consolidated statements of operations. |
(4) | Represents estimated annual amortization related to above-market ground lease obligations. Amounts will be recorded as a decrease to ground lease expense in the consolidated statements of operations. |
6. | Receivables |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Current receivables | $ | 15,172 | $ | 13,233 | |||
Allowance for uncollectible tenant receivables | (1,712 | ) | (2,080 | ) | |||
Current receivables, net | $ | 13,460 | $ | 11,153 |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Deferred rent receivables | $ | 220,501 | $ | 191,586 | |||
Allowance for deferred rent receivables | (1,524 | ) | (1,882 | ) | |||
Deferred rent receivables, net (1) | $ | 218,977 | $ | 189,704 |
(1) | Excludes deferred rent receivables, net related to real estate held for sale as of December 31, 2015. |
7. | Prepaid Expenses and Other Assets, Net |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Furniture, fixtures and other long-lived assets, net | $ | 40,395 | $ | 11,324 | |||
Notes receivable (1) | 19,439 | 3,056 | |||||
Prepaid expenses | 10,774 | 12,853 | |||||
Total Prepaid Expenses and Other Assets, Net | $ | 70,608 | $ | 27,233 |
(1) | Approximately $15.1 million of our notes receivables are secured by real estate. |
Annual Stated Interest Rate (1) | GAAP Effective Rate (1)(2) | Maturity Date | December 31, | ||||||||||
Type of Debt | 2016 | 2015 | |||||||||||
(in thousands) | |||||||||||||
Mortgage note payable (3) | 3.57% | 3.57% | December 2026 | $ | 170,000 | $ | — | ||||||
Mortgage note payable (4) | 4.27% | 4.27% | February 2018 | 125,756 | 128,315 | ||||||||
Mortgage note payable (4) | 4.48% | 4.48% | July 2027 | 94,754 | 96,354 | ||||||||
Mortgage note payable (4)(5) | 6.05% | 3.50% | June 2019 | 82,443 | 85,890 | ||||||||
Mortgage note payable (6) | 7.15% | 7.15% | May 2017 | 1,215 | 3,987 | ||||||||
Mortgage note payable (7) | 6.51% | 6.51% | February 2017 | — | 65,563 | ||||||||
Other (8) | Various | Various | Various | — | 1,809 | ||||||||
Total secured debt | $ | 474,168 | $ | 381,918 | |||||||||
Unamortized Deferred Financing Costs | (1,396 | ) | (1,083 | ) | |||||||||
Total secured debt, net | $ | 472,772 | $ | 380,835 |
(1) | All interest rates presented are fixed-rate interest rates. |
(2) | Represents the effective interest rate including the amortization of initial issuance discounts/premiums excluding the amortization of deferred financing costs. |
(3) | This mortgage note payable was entered into in November 2016. |
(4) | The secured debt and the related properties that secure the debt are held in a special purpose entity and the properties are not available to satisfy the debts and other obligations of the Company or the Operating Partnership. |
(5) | As of December 31, 2016 and 2015, the mortgage loan had unamortized debt premiums of $4.4 millionand $6.2 million, respectively. |
(6) | This mortgage note payable was repaid in February 2017 at par. |
(7) | This mortgage note payable was repaid in December 2016 at par. |
(8) | Balance of $1.8 million as of December 31, 2015 included public facility bonds that were assumed by the buyers in connection with sales of land during the year ended December 31, 2016. |
Net Carrying Amount as of December 31, | |||||||||||||||
Issuance date | Maturity date | Stated coupon rate | Effective interest rate (1) | 2016 | 2015 | ||||||||||
(in thousands) | |||||||||||||||
4.375% Unsecured Senior Notes (2) | September 2015 | October 2025 | 4.375% | 4.440% | $ | 400,000 | $ | 400,000 | |||||||
Unamortized discount and deferred financing costs | (4,846 | ) | (5,400 | ) | |||||||||||
Net carrying amount | $ | 395,154 | $ | 394,600 | |||||||||||
4.250% Unsecured Senior Notes (3) | July 2014 | August 2029 | 4.250% | 4.350% | $ | 400,000 | $ | 400,000 | |||||||
Unamortized discount and deferred financing costs | (6,696 | ) | (7,228 | ) | |||||||||||
Net carrying amount | $ | 393,304 | $ | 392,772 | |||||||||||
3.800% Unsecured Senior Notes (4) | January 2013 | January 2023 | 3.800% | 3.804% | $ | 300,000 | $ | 300,000 | |||||||
Unamortized discount and deferred financing costs | (1,656 | ) | (1,931 | ) | |||||||||||
Net carrying amount | $ | 298,344 | $ | 298,069 | |||||||||||
4.800% Unsecured Senior Notes (4)(5) | July 2011 | July 2018 | 4.800% | 4.827% | $ | 325,000 | $ | 325,000 | |||||||
Unamortized discount and deferred financing costs | (767 | ) | (1,251 | ) | |||||||||||
Net carrying amount | $ | 324,233 | $ | 323,749 | |||||||||||
6.625% Unsecured Senior Notes (6) | May 2010 | June 2020 | 6.625% | 6.743% | $ | 250,000 | $ | 250,000 | |||||||
Unamortized discount and deferred financing costs | (1,868 | ) | (2,414 | ) | |||||||||||
Net carrying amount | $ | 248,132 | $ | 247,586 | |||||||||||
Total Unsecured Senior Notes, Net | $ | 1,659,167 | $ | 1,656,776 | |||||||||||
(1) | Represents the effective interest rate including the amortization of initial issuance discounts, excluding the amortization of deferred financing costs. |
(2) | Interest on these notes is payable semi-annually in arrears on April 1st and October 1st of each year. |
(3) | Interest on these notes is payable semi-annually in arrears on February 15th and August 15th of each year. |
(4) | Interest on these notes is payable semi-annually in arrears on January 15th and July 15th of each year. |
(5) | In October 2015, certain common limited partners in the Operating Partnership that previously contributed their interests in the property at 6255 W. Sunset Blvd., Los Angeles, California to the Operating Partnership entered into an agreement with the Company. Pursuant to this agreement, such common limited partners will reimburse the Company for a portion of any amounts the Company may be required to pay pursuant to its guarantee of the Operating Partnership's 4.800% Senior Notes due 2018 or that the Company may otherwise become required to pay under applicable law with respect to such notes. |
(6) | Interest on these notes is payable semi-annually in arrears on June 1st and December 1st of each year. |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Outstanding borrowings | $ | — | $ | — | |||
Remaining borrowing capacity | 600,000 | 600,000 | |||||
Total borrowing capacity (1) | $ | 600,000 | $ | 600,000 | |||
Interest rate (2) | 1.82 | % | 1.48 | % | |||
Facility fee-annual rate (3) | 0.200% | ||||||
Maturity date | July 2019 |
(1) | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility. |
(2) | The interest rate on our unsecured revolving credit facility is based on an annual rate of LIBOR plus1.050%. |
(3) | Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of December 31, 2016 and 2015, $3.3 million and $4.6 million of deferred financing costs remained to be amortized through the maturity date of our unsecured revolving credit facility, which are included in prepaid expenses and other assets, net on our consolidated balance sheets. |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Outstanding borrowings (1) | $ | 150,000 | $ | 150,000 | |||
Interest rate (2) | 1.85 | % | 1.40 | % | |||
Maturity date | July 2019 |
(1) | As of December 31, 2016 and December 31, 2015, $0.7 million and $0.9 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured term loan facility. |
(2) | Our unsecured term loan facility interest rate was calculated based on an annual rate of LIBOR plus 1.150%. |
Year | (in thousands) | ||
2017 | $ | 7,286 | |
2018 | 451,669 | ||
2019 | 265,309 | ||
2020 | 255,137 | ||
2021 | 5,342 | ||
Thereafter | 1,349,023 | ||
Total aggregate principal value (1)(2) | $ | 2,333,766 |
(1) | Includes gross principal balance of outstanding debt before the effect of the following at December 31, 2016: $11.5 million of unamortized deferred financing costs, $6.6 million of unamortized discounts for the unsecured senior notes and $4.4 million of unamortized premiums for the secured debt. |
(2) | Excludes the Series A and B Notes issuable pursuant to the Note Purchase Agreement entered into in September 2016 as no Series A or B Notes were issued and outstanding under these notes as of December 31, 2016. |
Year Ended December 31, 2014 | |||
Contractual interest payments | $ | 5,608 | |
Amortization of discount | 3,769 | ||
Interest expense attributable to the 4.25% Exchangeable Notes | $ | 9,377 |
Period Ended November 15, 2014 (1) | |||
Per share average trading price of the Company's common stock | $ | 60.04 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in thousands) | |||||||||||
Gross interest expense | $ | 105,263 | $ | 109,647 | $ | 114,661 | |||||
Capitalized interest | (49,460 | ) | (51,965 | ) | (47,090 | ) | |||||
Interest expense | $ | 55,803 | $ | 57,682 | $ | 67,571 |
10. | Deferred Revenue and Acquisition Related Liabilities, net |
December 31, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Deferred revenue related to tenant-funded tenant improvements (1) | $ | 99,489 | $ | 90,825 | |||
Other deferred revenue | 9,293 | 5,007 | |||||
Acquisition-related intangible liabilities, net (2) | 41,578 | 32,324 | |||||
Total | $ | 150,360 | $ | 128,156 |
(1) | Excludes deferred revenue related to tenant-funded tenant improvements related to properties held for sale at December 31, 2015. |
(2) | See Note 2 “Basis of Presentation and Significant Accounting Policies” and Note 5 “Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net” for additional information. |
Year Ending | (in thousands) | ||
2017 | $ | 14,453 | |
2018 | 13,891 | ||
2019 | 12,349 | ||
2020 | 11,767 | ||
2021 | 10,524 | ||
Thereafter | 36,505 | ||
Total | $ | 99,489 |
13. | Stockholders’ Equity of the Company |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions, except share data) | |||||||||||
Shares of common stock sold during the period | 451,398 | 1,866,267 | 1,599,123 | ||||||||
Aggregate gross proceeds | $ | 32.3 | $ | 140.1 | $ | 104.7 | |||||
Aggregate net proceeds after selling commissions | $ | 31.9 | $ | 138.2 | $ | 103.1 |
December 31, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Dividends and Distributions payable to: | |||||||
Common stockholders | $ | 212,074 | $ | 32,291 | |||
Noncontrolling common unitholders of the Operating Partnership | 5,418 | 618 | |||||
RSU holders (1) | 3,158 | 427 | |||||
Total accrued dividends and distribution to common stockholders and noncontrolling unitholders | 220,650 | 33,336 | |||||
Preferred stockholders | 1,656 | 1,656 | |||||
Total accrued dividends and distributions | $ | 222,306 | $ | 34,992 |
(1) | The amount includes the value of the dividend equivalents that will be paid with additional RSUs (see Note 15 “Share-Based Compensation” for additional information). |
December 31, | |||||
2016 | 2015 | ||||
Outstanding Shares and Units: | |||||
Common stock (1) | 93,219,439 | 92,258,690 | |||
Noncontrolling common units | 2,381,543 | 1,764,775 | |||
RSUs (2) | 1,395,189 | 1,269,809 | |||
Series G Preferred stock | 4,000,000 | 4,000,000 | |||
Series H Preferred stock | 4,000,000 | 4,000,000 |
(1) | The amount includes nonvested shares. |
(2) | The amount includes nonvested RSUs. Does not include the 659,051 and 425,452 market measure-based RSUs because not all the necessary performance conditions have been met as of December 31, 2016 and2015, respectively. |
14. | Partners' Capital of the Operating Partnership |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions, except share and per share data) | |||||||||||
Shares of common stock contributed by the Company | 451,398 | 1,866,267 | 1,599,123 | ||||||||
Common units exchanged for shares of common stock by the Company | 451,398 | 1,866,267 | 1,599,123 | ||||||||
Aggregate gross proceeds | $ | 32.3 | $ | 140.1 | $ | 104.7 | |||||
Aggregate net proceeds after selling commissions | $ | 31.9 | $ | 138.2 | $ | 103.1 |
December 31, 2016 | December 31, 2015 | ||||
Company owned common units in the Operating Partnership | 93,219,439 | 92,258,690 | |||
Company owned general partnership interest | 97.5 | % | 98.1 | % | |
Noncontrolling common units of the Operating Partnership | 2,381,543 | 1,764,775 | |||
Ownership interest of noncontrolling interest | 2.5 | % | 1.9 | % |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Distributions payable to: | |||||||
General partner | $ | 212,074 | $ | 32,291 | |||
Common limited partners | 5,418 | 618 | |||||
RSU holders (1) | 3,158 | 427 | |||||
Total accrued distributions to common unitholders | 220,650 | 33,336 | |||||
Preferred unitholders | 1,656 | 1,656 | |||||
Total accrued distributions | $ | 222,306 | $ | 34,992 |
(1) | The amount includes the value of the dividend equivalents that will be paid with additional RSUs (see Note 15 “Share-Based Compensation” for additional information). |
December 31, 2016 | December 31, 2015 | ||||
Outstanding Units: | |||||
Common units held by the general partner | 93,219,439 | 92,258,690 | |||
Common units held by the limited partners | 2,381,543 | 1,764,775 | |||
RSUs (1) | 1,395,189 | 1,269,809 | |||
Series G Preferred units | 4,000,000 | 4,000,000 | |||
Series H Preferred units | 4,000,000 | 4,000,000 |
(1) | Does not include the 659,051 and 425,452 market measure-based RSUs because not all the necessary performance conditions have been met as of December 31, 2016 and 2015, respectively. |
2016 Performance-Based RSU Grant | 2015 Performance-Based RSU Grant | ||||
Service vesting period | January 28, 2016 - January 5, 2019 | January 27, 2015 - January 5, 2018 | |||
Target RSUs granted | 168,077 | 127,657 | |||
Estimated RSUs earned based on FFO per share performance condition | 241,438 | 185,510 | |||
Date of fair valuation | January 28, 2016 | January 27, 2015 |
2016 Award Fair Value Assumptions | 2015 Award Fair Value Assumptions | |
Valuation date | January 28, 2016 | January 27, 2015 |
Fair value per share on valuation date | $57.08 | $78.55 |
Expected share price volatility | 26.00% | 20.00% |
Risk-free interest rate | 1.13% | 0.92% |
Remaining expected life | 2.9 years | 2.9 years |
2016 Time-Based RSU Grant | 2015 Time-Based RSU Grant | ||||||
Service vesting period | January 28, 2016 - January 5, 2019 | January 27, 2015 - January 5, 2018 | |||||
Fair value on valuation date (in millions) | $ | 7.1 | $ | 6.4 | |||
Fair value per share | $ | 56.23 | $ | 75.34 | |||
Date of fair valuation | January 28, 2016 | January 27, 2015 |
Nonvested RSUs | Vested RSUs | Total RSUs | ||||||||||
Amount | Weighted-Average Fair Value Per Share (1) | |||||||||||
Outstanding at January 1, 2016 | 425,452 | $ | 67.68 | — | 425,452 | |||||||
Granted | 258,393 | 57.36 | — | 258,393 | ||||||||
Vested | (36,914 | ) | 43.53 | 36,914 | — | |||||||
Settled (2) | (36,914 | ) | (36,914 | ) | ||||||||
Issuance of dividend equivalents (3) | 12,120 | 65.50 | — | 12,120 | ||||||||
Outstanding as of December 31, 2016 (4) | 659,051 | $ | 64.95 | — | 659,051 |
(1) | Represents the grant-date fair value for all awards, excluding the 2014 Performance-Based RSU Grant, which was re-measured upon stockholder approval of the amended 2006 Plan on May 22, 2014, as an insufficient number of shares were available to settle these RSUs upon initial grant on January 29, 2014. |
(2) | Represents vested RSUs that were settled in shares of the Company’s common stock. Total shares settled include 19,264 shares that were tendered in accordance with the terms of the 2006 Plan to satisfy minimum statutory tax withholding requirements related to the RSUs settled. We accept the return of RSUs at the current quoted closing share price of the Company’s common stock to satisfy tax obligations. |
(3) | Represents the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreement. |
(4) | Outstanding RSUs as of December 31, 2016 represent the achievement of the maximum performance conditions and assumed target levels for the market conditions. The number of restricted stock units ultimately earned is subject to change based upon actual performance over the three-year vesting period. Dividend equivalents earned will vest along with the underlying award and are also subject to changes based on the number of RSUs ultimately earned for each underlying award. |
RSUs Granted | RSUs Vested | ||||||||||||
Years ended December 31, | Non-Vested RSUs Granted | Weighted-Average Fair Value Per Share (1) | Vested RSUs | Total Vest-Date Fair Value (in thousands) | |||||||||
2016 | 258,393 | $ | 57.36 | (36,914 | ) | $ | 2,788 | ||||||
2015 | 191,483 | 79.25 | — | — | |||||||||
2014 | 183,365 | 64.86 | (16,338 | ) | 1,092 |
(1) | Represents the grant-date fair value for all awards, excluding the 2014 Performance-Based RSU Grant, which was re-measured upon stockholder approval of the amended 2006 Plan on May 22, 2014, as an insufficient number of shares were available to settle these RSUs upon initial grant on January 29, 2014. |
Nonvested RSUs | Vested RSUs | Total RSUs | ||||||||||
Amount | Weighted Average Fair Value Per Share (1) | |||||||||||
Outstanding at January 1, 2016 | 318,449 | $ | 58.91 | 951,360 | 1,269,809 | |||||||
Granted | 173,747 | 58.29 | — | 173,747 | ||||||||
Vested | (130,784 | ) | 57.91 | 130,784 | — | |||||||
Settled (2) | (72,148 | ) | (72,148 | ) | ||||||||
Issuance of dividend equivalents (3) | 5,027 | 65.78 | 23,243 | 28,270 | ||||||||
Canceled (4) | (4,489 | ) | (4,489 | ) | ||||||||
Outstanding as of December 31, 2016 | 366,439 | $ | 59.07 | 1,028,750 | 1,395,189 |
(1) | Represents the grant-date fair value for all awards, excluding the 2014 Performance-Based RSU Grant, which was re-measured upon stockholder approval of the amended 2006 Plan on May 22, 2014, as an insufficient number of shares were available to settle these RSUs upon initial grant on January 29, 2014. |
(2) | Represents vested RSUs that were settled in shares of the Company’s common stock. Total shares settled include 23,087 shares that were tendered in accordance with the terms of the 2006 Plan to satisfy minimum statutory tax withholding requirements related to the RSUs settled. We accept the return of RSUs at the current quoted closing share price of the Company’s common stock to satisfy tax obligations. |
(3) | Represents the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreement. |
(4) | For shares vested but not yet settled, we accept the return of RSUs at the current quoted closing share price of the Company’s common stock to satisfy minimum statutory tax-withholding requirements related to either the settlement or vesting of RSUs in accordance with the terms of the 2006 Plan. |
RSUs Granted | RSUs Vested | ||||||||||||
Year ended December 31, | Non-Vested RSUs Issued | Weighted-Average Grant Date Fair Value Per Share | Vested RSUs | Total Vest-Date Fair Value (1) (in thousands) | |||||||||
2016 | 173,747 | $ | 58.29 | (130,784 | ) | $ | 8,438 | ||||||
2015 | 98,802 | 74.49 | (107,541 | ) | 7,528 | ||||||||
2014 | 155,016 | 59.89 | (116,447 | ) | 6,675 |
(1) | Total fair value of RSUs vested was calculated based on the quoted closing share price of the Company’s common stock on the NYSE on the day of vesting. Excludes the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreement. |
Nonvested Restricted Stock | Weighted-Average Grant Date Fair Value Per Share | |||||
Outstanding at January 1, 2016 | 60,797 | $ | 47.32 | |||
Vested (1) | (24,262 | ) | 46.39 | |||
Outstanding as of December 31, 2016 | 36,535 | $ | 47.93 |
(1) | The total shares vested includes 12,661 shares that were tendered in accordance with the terms of the 2006 Plan to satisfy minimum statutory tax withholding requirements related to the restricted shares that have vested. We accept the return of shares at the current quoted closing share price of the Company’s common stock to satisfy tax withholding obligations. |
Shares Granted | Shares Vested | ||||||||||||
Years ended December 31, | Nonvested Shares Issued | Weighted-Average Grant Date Fair Value Per Share | Vested Shares | Total Fair Value at Vest Date(1) (in thousands) | |||||||||
2016 | — | $ | — | (24,262 | ) | $ | 1,527 | ||||||
2015 | — | — | (24,264 | ) | 1,725 | ||||||||
2014 | 213 | 51.35 | (25,899 | ) | 1,323 |
(1) | Total fair value of shares vested was calculated based on the quoted closing share price of the Company’s common stock on the NYSE on the date of vesting. |
February 2012 Option Grant | |
Fair value of options granted per share | $9.20 |
Expected stock price volatility | 33.00% |
Risk-free interest rate | 1.35% |
Dividend yield | 3.80% |
Expected life of option | 6.5 years |
Number of Options | Exercise Price | Intrinsic Value (in millions) (1) | ||||||||
Outstanding at December 31, 2015 | 610,000 | $ | 42.61 | $ | 12.6 | |||||
Exercised | (286,500 | ) | 42.61 | 8.4 | ||||||
Forfeited | (9,000 | ) | 42.61 | 0.1 | ||||||
Outstanding at December 31, 2016 (2) | 314,500 | $ | 42.61 | $ | 9.6 | |||||
Options exercisable at December 31, 2016 (3) | 50,500 | $ | 42.61 | $ | 1.5 |
(1) | The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds the exercise price of an option. The fair value of the underlying stock was determined by using the closing share price on the NYSE on the date of exercise, forfeiture or respective period end. |
(2) | As of December 31, 2016, the average remaining life of stock options outstanding was 5.1 years |
(3) | As of December 31, 2016, the average remaining life of stock options exercisable was approximately 5.1 years. |
16. | Employee Benefit Plans |
17. | Future Minimum Rent |
Year Ending | (in thousands) | ||
2017 | $ | 538,269 | |
2018 | 537,891 | ||
2019 | 493,998 | ||
2020 | 424,791 | ||
2021 | 370,941 | ||
Thereafter | 1,901,303 | ||
Total (1) | $ | 4,267,193 |
(1) | Excludes residential leases and leases with a term of one year or less. |
18. | Commitments and Contingencies |
Property | Contractual Expiration Date (1) |
601 108th Ave NE, Bellevue, WA | November 2093 |
701, 801 and 837 N. 34th Street, Seattle, WA (2) | December 2041 |
1701 Page Mill Road and 3150 Porter Drive, Palo Alto, CA | December 2067 |
Kilroy Airport Center Phases I, II, and III, Long Beach, CA | July 2084 |
(1) | Reflects the contractual expiration date prior to the impact of any extension or purchase options held by the Company. |
(2) | The Company has three 10 year and one 45 year extension options for this ground lease, which if exercised would extend the expiration date to December 2116. |
Year Ending | (in thousands) | ||
2017 | $ | 4,934 | |
2018 | 4,934 | ||
2019 | 4,934 | ||
2020 | 4,934 | ||
2021 | 4,934 | ||
Thereafter | 231,402 | ||
Total (1)(2)(3)(4)(5) | $ | 256,072 |
(2) | One of our ground lease obligations is subject to a fair market value adjustment every five years; however, the lease includes ground rent subprotection and infrastructure rent credits which currently limit our annual rental obligations to $1.0 million. The contractual obligations for that ground lease included above assumes the lesser of $1.0 million or annual lease rental obligation in effect as of December 31, 2016. |
(3) | One of our ground lease obligations includes a component which is based on the percentage of gross income that exceeds the minimum ground rent. The minimum rent is subject to increases every five years based on 50% of the average annual percentage rent for the previous five years. |
(4) | One of our ground lease obligations is subject to a fair market value adjustment every five years based on a combination of CPI adjustments and third-party appraisals limited to maximum increases annually. The contractual obligations included above assume the annual lease rental obligation in effect as of December 31, 2016. |
(5) | One of our ground lease obligations includes a component which is based on the percentage of adjusted gross income that exceeds the minimum ground rent. The minimum rent is subject to increases every 10 years by an amount equal to 60% of the average annual percentage rent for the previous three years. |
Fair Value (Level 1) (1) | |||||||
2014 | 2013 | ||||||
Description | (in thousands) | ||||||
Marketable securities (2) | $ | 11,971 | $ | 10,008 |
December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Description | (in thousands) | ||||||||||
Net gain on marketable securities | $ | 397 | $ | 1,489 | $ | 723 |
December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Liabilities | |||||||||||||||
Secured debt (1) | $ | 546,292 | $ | 559,483 | $ | 560,434 | $ | 568,760 | |||||||
Exchangeable senior notes, net (1)(2) | — | — | 168,372 | 178,190 | |||||||||||
Unsecured debt, net (3) | 1,783,121 | 1,858,492 | 1,431,132 | 1,523,052 | |||||||||||
Unsecured line of credit (1) | 140,000 | 140,051 | 45,000 | 45,012 |
Location | Property Type | Month of Disposition | Number of Buildings | Rentable Square Feet (unaudited) | Sales Price (in millions) (1) | ||||||||
2014 Dispositions | |||||||||||||
San Diego Properties, San Diego, CA (2) | Office | January | 12 | 1,049,035 | $ | 294.7 | |||||||
9785 & 9791 Towne Centre Drive, San Diego, CA | Office | June | 2 | 126,000 | 29.5 | ||||||||
111 Pacifica, Irvine, CA | Office | September | 1 | 67,496 | 15.1 | ||||||||
4040 Civic Center Drive, San Rafael, CA | Office | October | 1 | 130,237 | 34.9 | ||||||||
999 Town & Country Road, Orange, CA | Office | December | 1 | 98,551 | 25.3 | ||||||||
Total 2014 dispositions | 17 | 1,471,319 | $ | 399.5 | |||||||||
2013 Dispositions | |||||||||||||
26541 Agoura Road, Calabasas, CA | Office | June | 1 | 90,156 | $ | 14.7 | |||||||
8101 Kaiser Boulevard, Anaheim, CA | Office | October | 1 | 59,790 | 9.6 | ||||||||
4910 Directors Place, San Diego CA | Office | December | 1 | 50,360 | 32.6 | ||||||||
Total 2013 dispositions | 3 | 200,306 | $ | 56.9 | |||||||||
2012 Dispositions | |||||||||||||
15004 Innovation Drive and 10243 Genetic Center Drive, San Diego, CA | Office | January | 2 | 253,676 | $ | 146.1 | |||||||
Industrial Portfolio (3) | Industrial | November/December | 39 | 3,413,354 | |||||||||
5151, 5153 & 5155 Camino Ruiz, Camarillo, CA | Office | December | 4 | 265,372 | |||||||||
4175 E. La Palma Avenue, Anaheim, CA | Office | December | 1 | 43,263 | |||||||||
Subtotal industrial portfolio | 44 | 3,721,989 | 354.2 | ||||||||||
Total 2012 dispositions | 46 | 3,975,665 | $ | 500.3 |
Real estate assets and other assets held for sale | (in thousands) | ||
Land and improvements | $ | 49,656 | |
Buildings and improvements | 209,594 | ||
Total real estate held for sale | 259,250 | ||
Accumulated depreciation and amortization | (63,110 | ) | |
Total real estate held for sale, net | 196,140 | ||
Current receivables, net | 269 | ||
Deferred rent receivables, net | 8,978 | ||
Deferred leasing costs and acquisition-related intangible assets, net | 5,791 | ||
Prepaid expenses and other assets, net | 1,922 | ||
Real estate and other assets held for sale, net | $ | 213,100 | |
Liabilities and deferred revenue of real estate assets held for sale | |||
Accounts payable, accrued expenses and other liabilities | $ | 1,153 | |
Deferred revenue and acquisition-related intangible liabilities, net | 10,723 | ||
Rents received in advance and tenant security deposits | 2,571 | ||
Liabilities and deferred revenue of real estate assets held for sale | $ | 14,447 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Rental income | $ | 7,206 | $ | 31,984 | $ | 49,689 | |||||
Tenant reimbursements | 278 | 3,546 | 6,544 | ||||||||
Other property income | 13 | 5,178 | 1,923 | ||||||||
Total revenues | 7,497 | 40,708 | 58,156 | ||||||||
Expenses: | |||||||||||
Property expenses | 2,171 | 7,207 | 9,945 | ||||||||
Real estate taxes | 692 | 3,523 | 5,696 | ||||||||
Provision for bad debts | — | — | (195 | ) | |||||||
Depreciation and amortization | 2,061 | 12,600 | 19,379 | ||||||||
Total expenses | 4,924 | 23,330 | 34,825 | ||||||||
Income from discontinued operations before net gain on dispositions of discontinued operations | 2,573 | 17,378 | 23,331 | ||||||||
Net gain on dispositions of discontinued operations | 121,922 | 12,252 | 259,245 | ||||||||
Total income from discontinued operations | $ | 124,495 | $ | 29,630 | $ | 282,576 |
5. | Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Deferred Leasing Costs and Acquisition-related Intangible Assets, net:(1) | |||||||
Deferred leasing costs | $ | 239,958 | $ | 205,888 | |||
Accumulated amortization | (89,633 | ) | (72,745 | ) | |||
Deferred leasing costs, net | 150,325 | 133,143 | |||||
Above-market operating leases | 10,304 | 10,989 | |||||
Accumulated amortization | (6,933 | ) | (6,739 | ) | |||
Above-market operating leases, net | 3,371 | 4,250 | |||||
In-place leases | 94,813 | 72,639 | |||||
Accumulated amortization | (40,593 | ) | (33,810 | ) | |||
In-place leases, net | 54,220 | 38,829 | |||||
Below-market ground lease obligation | 490 | 490 | |||||
Accumulated amortization | (38 | ) | (29 | ) | |||
Below-market ground lease obligation, net | 452 | 461 | |||||
Total deferred leasing costs and acquisition-related intangible assets, net | $ | 208,368 | $ | 176,683 | |||
Acquisition-related Intangible Liabilities, net: (2) | |||||||
Below-market operating leases | $ | 69,472 | $ | 53,502 | |||
Accumulated amortization | (33,689 | ) | (27,074 | ) | |||
Below-market operating leases, net | 35,783 | 26,428 | |||||
Above-market ground lease obligation | 6,320 | 6,320 | |||||
Accumulated amortization | (525 | ) | (424 | ) | |||
Above-market ground lease obligation, net | 5,795 | 5,896 | |||||
Total acquisition-related intangible liabilities, net | $ | 41,578 | $ | 32,324 |
(1) | Excludes deferred leasing costs and acquisition-related intangible assets, net related to properties held for sale as of December 31, 2015. |
(2) | Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets. |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in thousands) | |||||||||||
Deferred leasing costs (1) | $ | 28,639 | $ | 27,866 | $ | 27,555 | |||||
Above-market operating leases (2) | 1,509 | 2,532 | 5,303 | ||||||||
In-place leases (1) | 11,676 | 14,622 | 21,628 | ||||||||
Below-market ground lease obligation (3) | 8 | 8 | 8 | ||||||||
Below-market operating leases (4) | (8,674 | ) | (10,980 | ) | (13,238 | ) | |||||
Above-market ground lease obligation (5) | (101 | ) | (101 | ) | (101 | ) | |||||
Total | $ | 33,057 | $ | 33,947 | $ | 41,155 |
(1) | The amortization of deferred leasing costs and in-place leases is recorded to depreciation and amortization expense and the amortization of lease incentives is recorded as a reduction to rental income in the consolidated statements of operations for the periods presented. |
(2) | The amortization of above-market operating leases is recorded as a decrease to rental income in the consolidated statements of operations for the periods presented. |
(3) | The amortization of the below-market ground lease obligation is recorded as an increase to ground lease expense in the consolidated statements of operations for the periods presented. |
(4) | The amortization of below-market operating leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented. |
(5) | The amortization of the above-market ground lease obligation is recorded as a decrease to ground lease expense in the consolidated statements of operations for the periods presented. |
Year | Deferred Leasing Costs | Above-Market Operating Leases (1) | In-Place Leases | Below-Market Ground Lease Obligation (2) | Below-Market Operating Leases (3) | Above-Market Ground Lease Obligation (4) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
2017 | $ | 29,190 | $ | 1,298 | $ | 18,366 | $ | 8 | $ | (10,633 | ) | $ | (101 | ) | |||||||||
2018 | 25,761 | 869 | 13,556 | 8 | (9,116 | ) | (101 | ) | |||||||||||||||
2019 | 21,397 | 681 | 8,856 | 8 | (6,519 | ) | (101 | ) | |||||||||||||||
2020 | 16,703 | 53 | 5,739 | 8 | (3,676 | ) | (101 | ) | |||||||||||||||
2021 | 12,590 | 53 | 2,505 | 8 | (1,031 | ) | (101 | ) | |||||||||||||||
Thereafter | 44,684 | 417 | 5,198 | 412 | (4,808 | ) | (5,290 | ) | |||||||||||||||
Total | $ | 150,325 | $ | 3,371 | $ | 54,220 | $ | 452 | $ | (35,783 | ) | $ | (5,795 | ) |
(1) | Represents estimated annual amortization related to above-market operating leases. Amounts will be recorded as a decrease to rental income in the consolidated statements of operations. |
(2) | Represents estimated annual amortization related to below-market ground lease obligations. Amounts will be recorded as an increase to ground lease expense in the consolidated statements of operations. |
(3) | Represents estimated annual amortization related to below-market operating leases. Amounts will be recorded as an increase to rental income in the consolidated statements of operations. |
(4) | Represents estimated annual amortization related to above-market ground lease obligations. Amounts will be recorded as a decrease to ground lease expense in the consolidated statements of operations. |
6. | Receivables |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Current receivables | $ | 15,172 | $ | 13,233 | |||
Allowance for uncollectible tenant receivables | (1,712 | ) | (2,080 | ) | |||
Current receivables, net | $ | 13,460 | $ | 11,153 |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Deferred rent receivables | $ | 220,501 | $ | 191,586 | |||
Allowance for deferred rent receivables | (1,524 | ) | (1,882 | ) | |||
Deferred rent receivables, net (1) | $ | 218,977 | $ | 189,704 |
(1) | Excludes deferred rent receivables, net related to real estate held for sale as of December 31, 2015. |
7. | Prepaid Expenses and Other Assets, Net |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Furniture, fixtures and other long-lived assets, net | $ | 40,395 | $ | 11,324 | |||
Notes receivable (1) | 19,439 | 3,056 | |||||
Prepaid expenses | 10,774 | 12,853 | |||||
Total Prepaid Expenses and Other Assets, Net | $ | 70,608 | $ | 27,233 |
(1) | Approximately $15.1 million of our notes receivables are secured by real estate. |
Annual Stated Interest Rate (1) | GAAP Effective Rate (1)(2) | Maturity Date | December 31, | ||||||||||
Type of Debt | 2016 | 2015 | |||||||||||
(in thousands) | |||||||||||||
Mortgage note payable (3) | 3.57% | 3.57% | December 2026 | $ | 170,000 | $ | — | ||||||
Mortgage note payable (4) | 4.27% | 4.27% | February 2018 | 125,756 | 128,315 | ||||||||
Mortgage note payable (4) | 4.48% | 4.48% | July 2027 | 94,754 | 96,354 | ||||||||
Mortgage note payable (4)(5) | 6.05% | 3.50% | June 2019 | 82,443 | 85,890 | ||||||||
Mortgage note payable (6) | 7.15% | 7.15% | May 2017 | 1,215 | 3,987 | ||||||||
Mortgage note payable (7) | 6.51% | 6.51% | February 2017 | — | 65,563 | ||||||||
Other (8) | Various | Various | Various | — | 1,809 | ||||||||
Total secured debt | $ | 474,168 | $ | 381,918 | |||||||||
Unamortized Deferred Financing Costs | (1,396 | ) | (1,083 | ) | |||||||||
Total secured debt, net | $ | 472,772 | $ | 380,835 |
(1) | All interest rates presented are fixed-rate interest rates. |
(2) | Represents the effective interest rate including the amortization of initial issuance discounts/premiums excluding the amortization of deferred financing costs. |
(3) | This mortgage note payable was entered into in November 2016. |
(4) | The secured debt and the related properties that secure the debt are held in a special purpose entity and the properties are not available to satisfy the debts and other obligations of the Company or the Operating Partnership. |
(5) | As of December 31, 2016 and 2015, the mortgage loan had unamortized debt premiums of $4.4 millionand $6.2 million, respectively. |
(6) | This mortgage note payable was repaid in February 2017 at par. |
(7) | This mortgage note payable was repaid in December 2016 at par. |
(8) | Balance of $1.8 million as of December 31, 2015 included public facility bonds that were assumed by the buyers in connection with sales of land during the year ended December 31, 2016. |
Net Carrying Amount as of December 31, | |||||||||||||||
Issuance date | Maturity date | Stated coupon rate | Effective interest rate (1) | 2016 | 2015 | ||||||||||
(in thousands) | |||||||||||||||
4.375% Unsecured Senior Notes (2) | September 2015 | October 2025 | 4.375% | 4.440% | $ | 400,000 | $ | 400,000 | |||||||
Unamortized discount and deferred financing costs | (4,846 | ) | (5,400 | ) | |||||||||||
Net carrying amount | $ | 395,154 | $ | 394,600 | |||||||||||
4.250% Unsecured Senior Notes (3) | July 2014 | August 2029 | 4.250% | 4.350% | $ | 400,000 | $ | 400,000 | |||||||
Unamortized discount and deferred financing costs | (6,696 | ) | (7,228 | ) | |||||||||||
Net carrying amount | $ | 393,304 | $ | 392,772 | |||||||||||
3.800% Unsecured Senior Notes (4) | January 2013 | January 2023 | 3.800% | 3.804% | $ | 300,000 | $ | 300,000 | |||||||
Unamortized discount and deferred financing costs | (1,656 | ) | (1,931 | ) | |||||||||||
Net carrying amount | $ | 298,344 | $ | 298,069 | |||||||||||
4.800% Unsecured Senior Notes (4)(5) | July 2011 | July 2018 | 4.800% | 4.827% | $ | 325,000 | $ | 325,000 | |||||||
Unamortized discount and deferred financing costs | (767 | ) | (1,251 | ) | |||||||||||
Net carrying amount | $ | 324,233 | $ | 323,749 | |||||||||||
6.625% Unsecured Senior Notes (6) | May 2010 | June 2020 | 6.625% | 6.743% | $ | 250,000 | $ | 250,000 | |||||||
Unamortized discount and deferred financing costs | (1,868 | ) | (2,414 | ) | |||||||||||
Net carrying amount | $ | 248,132 | $ | 247,586 | |||||||||||
Total Unsecured Senior Notes, Net | $ | 1,659,167 | $ | 1,656,776 | |||||||||||
(1) | Represents the effective interest rate including the amortization of initial issuance discounts, excluding the amortization of deferred financing costs. |
(2) | Interest on these notes is payable semi-annually in arrears on April 1st and October 1st of each year. |
(3) | Interest on these notes is payable semi-annually in arrears on February 15th and August 15th of each year. |
(4) | Interest on these notes is payable semi-annually in arrears on January 15th and July 15th of each year. |
(5) | In October 2015, certain common limited partners in the Operating Partnership that previously contributed their interests in the property at 6255 W. Sunset Blvd., Los Angeles, California to the Operating Partnership entered into an agreement with the Company. Pursuant to this agreement, such common limited partners will reimburse the Company for a portion of any amounts the Company may be required to pay pursuant to its guarantee of the Operating Partnership's 4.800% Senior Notes due 2018 or that the Company may otherwise become required to pay under applicable law with respect to such notes. |
(6) | Interest on these notes is payable semi-annually in arrears on June 1st and December 1st of each year. |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Outstanding borrowings | $ | — | $ | — | |||
Remaining borrowing capacity | 600,000 | 600,000 | |||||
Total borrowing capacity (1) | $ | 600,000 | $ | 600,000 | |||
Interest rate (2) | 1.82 | % | 1.48 | % | |||
Facility fee-annual rate (3) | 0.200% | ||||||
Maturity date | July 2019 |
(1) | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility. |
(2) | The interest rate on our unsecured revolving credit facility is based on an annual rate of LIBOR plus1.050%. |
(3) | Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of December 31, 2016 and 2015, $3.3 million and $4.6 million of deferred financing costs remained to be amortized through the maturity date of our unsecured revolving credit facility, which are included in prepaid expenses and other assets, net on our consolidated balance sheets. |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Outstanding borrowings (1) | $ | 150,000 | $ | 150,000 | |||
Interest rate (2) | 1.85 | % | 1.40 | % | |||
Maturity date | July 2019 |
(1) | As of December 31, 2016 and December 31, 2015, $0.7 million and $0.9 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured term loan facility. |
(2) | Our unsecured term loan facility interest rate was calculated based on an annual rate of LIBOR plus 1.150%. |
Year | (in thousands) | ||
2017 | $ | 7,286 | |
2018 | 451,669 | ||
2019 | 265,309 | ||
2020 | 255,137 | ||
2021 | 5,342 | ||
Thereafter | 1,349,023 | ||
Total aggregate principal value (1)(2) | $ | 2,333,766 |
(1) | Includes gross principal balance of outstanding debt before the effect of the following at December 31, 2016: $11.5 million of unamortized deferred financing costs, $6.6 million of unamortized discounts for the unsecured senior notes and $4.4 million of unamortized premiums for the secured debt. |
(2) | Excludes the Series A and B Notes issuable pursuant to the Note Purchase Agreement entered into in September 2016 as no Series A or B Notes were issued and outstanding under these notes as of December 31, 2016. |
Year Ended December 31, 2014 | |||
Contractual interest payments | $ | 5,608 | |
Amortization of discount | 3,769 | ||
Interest expense attributable to the 4.25% Exchangeable Notes | $ | 9,377 |
Period Ended November 15, 2014 (1) | |||
Per share average trading price of the Company's common stock | $ | 60.04 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in thousands) | |||||||||||
Gross interest expense | $ | 105,263 | $ | 109,647 | $ | 114,661 | |||||
Capitalized interest | (49,460 | ) | (51,965 | ) | (47,090 | ) | |||||
Interest expense | $ | 55,803 | $ | 57,682 | $ | 67,571 |
10. | Deferred Revenue and Acquisition Related Liabilities, net |
December 31, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Deferred revenue related to tenant-funded tenant improvements (1) | $ | 99,489 | $ | 90,825 | |||
Other deferred revenue | 9,293 | 5,007 | |||||
Acquisition-related intangible liabilities, net (2) | 41,578 | 32,324 | |||||
Total | $ | 150,360 | $ | 128,156 |
(1) | Excludes deferred revenue related to tenant-funded tenant improvements related to properties held for sale at December 31, 2015. |
(2) | See Note 2 “Basis of Presentation and Significant Accounting Policies” and Note 5 “Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net” for additional information. |
Year Ending | (in thousands) | ||
2017 | $ | 14,453 | |
2018 | 13,891 | ||
2019 | 12,349 | ||
2020 | 11,767 | ||
2021 | 10,524 | ||
Thereafter | 36,505 | ||
Total | $ | 99,489 |
13. | Stockholders’ Equity of the Company |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions, except share data) | |||||||||||
Shares of common stock sold during the period | 451,398 | 1,866,267 | 1,599,123 | ||||||||
Aggregate gross proceeds | $ | 32.3 | $ | 140.1 | $ | 104.7 | |||||
Aggregate net proceeds after selling commissions | $ | 31.9 | $ | 138.2 | $ | 103.1 |
December 31, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Dividends and Distributions payable to: | |||||||
Common stockholders | $ | 212,074 | $ | 32,291 | |||
Noncontrolling common unitholders of the Operating Partnership | 5,418 | 618 | |||||
RSU holders (1) | 3,158 | 427 | |||||
Total accrued dividends and distribution to common stockholders and noncontrolling unitholders | 220,650 | 33,336 | |||||
Preferred stockholders | 1,656 | 1,656 | |||||
Total accrued dividends and distributions | $ | 222,306 | $ | 34,992 |
(1) | The amount includes the value of the dividend equivalents that will be paid with additional RSUs (see Note 15 “Share-Based Compensation” for additional information). |
December 31, | |||||
2016 | 2015 | ||||
Outstanding Shares and Units: | |||||
Common stock (1) | 93,219,439 | 92,258,690 | |||
Noncontrolling common units | 2,381,543 | 1,764,775 | |||
RSUs (2) | 1,395,189 | 1,269,809 | |||
Series G Preferred stock | 4,000,000 | 4,000,000 | |||
Series H Preferred stock | 4,000,000 | 4,000,000 |
(1) | The amount includes nonvested shares. |
(2) | The amount includes nonvested RSUs. Does not include the 659,051 and 425,452 market measure-based RSUs because not all the necessary performance conditions have been met as of December 31, 2016 and2015, respectively. |
14. | Partners' Capital of the Operating Partnership |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions, except share and per share data) | |||||||||||
Shares of common stock contributed by the Company | 451,398 | 1,866,267 | 1,599,123 | ||||||||
Common units exchanged for shares of common stock by the Company | 451,398 | 1,866,267 | 1,599,123 | ||||||||
Aggregate gross proceeds | $ | 32.3 | $ | 140.1 | $ | 104.7 | |||||
Aggregate net proceeds after selling commissions | $ | 31.9 | $ | 138.2 | $ | 103.1 |
December 31, 2016 | December 31, 2015 | ||||
Company owned common units in the Operating Partnership | 93,219,439 | 92,258,690 | |||
Company owned general partnership interest | 97.5 | % | 98.1 | % | |
Noncontrolling common units of the Operating Partnership | 2,381,543 | 1,764,775 | |||
Ownership interest of noncontrolling interest | 2.5 | % | 1.9 | % |
December 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Distributions payable to: | |||||||
General partner | $ | 212,074 | $ | 32,291 | |||
Common limited partners | 5,418 | 618 | |||||
RSU holders (1) | 3,158 | 427 | |||||
Total accrued distributions to common unitholders | 220,650 | 33,336 | |||||
Preferred unitholders | 1,656 | 1,656 | |||||
Total accrued distributions | $ | 222,306 | $ | 34,992 |
(1) | The amount includes the value of the dividend equivalents that will be paid with additional RSUs (see Note 15 “Share-Based Compensation” for additional information). |
December 31, 2016 | December 31, 2015 | ||||
Outstanding Units: | |||||
Common units held by the general partner | 93,219,439 | 92,258,690 | |||
Common units held by the limited partners | 2,381,543 | 1,764,775 | |||
RSUs (1) | 1,395,189 | 1,269,809 | |||
Series G Preferred units | 4,000,000 | 4,000,000 | |||
Series H Preferred units | 4,000,000 | 4,000,000 |
(1) | Does not include the 659,051 and 425,452 market measure-based RSUs because not all the necessary performance conditions have been met as of December 31, 2016 and 2015, respectively. |
2016 Performance-Based RSU Grant | 2015 Performance-Based RSU Grant | ||||
Service vesting period | January 28, 2016 - January 5, 2019 | January 27, 2015 - January 5, 2018 | |||
Target RSUs granted | 168,077 | 127,657 | |||
Estimated RSUs earned based on FFO per share performance condition | 241,438 | 185,510 | |||
Date of fair valuation | January 28, 2016 | January 27, 2015 |
2016 Award Fair Value Assumptions | 2015 Award Fair Value Assumptions | |
Valuation date | January 28, 2016 | January 27, 2015 |
Fair value per share on valuation date | $57.08 | $78.55 |
Expected share price volatility | 26.00% | 20.00% |
Risk-free interest rate | 1.13% | 0.92% |
Remaining expected life | 2.9 years | 2.9 years |
2016 Time-Based RSU Grant | 2015 Time-Based RSU Grant | ||||||
Service vesting period | January 28, 2016 - January 5, 2019 | January 27, 2015 - January 5, 2018 | |||||
Fair value on valuation date (in millions) | $ | 7.1 | $ | 6.4 | |||
Fair value per share | $ | 56.23 | $ | 75.34 | |||
Date of fair valuation | January 28, 2016 | January 27, 2015 |
Nonvested RSUs | Vested RSUs | Total RSUs | ||||||||||
Amount | Weighted-Average Fair Value Per Share (1) | |||||||||||
Outstanding at January 1, 2016 | 425,452 | $ | 67.68 | — | 425,452 | |||||||
Granted | 258,393 | 57.36 | — | 258,393 | ||||||||
Vested | (36,914 | ) | 43.53 | 36,914 | — | |||||||
Settled (2) | (36,914 | ) | (36,914 | ) | ||||||||
Issuance of dividend equivalents (3) | 12,120 | 65.50 | — | 12,120 | ||||||||
Outstanding as of December 31, 2016 (4) | 659,051 | $ | 64.95 | — | 659,051 |
(1) | Represents the grant-date fair value for all awards, excluding the 2014 Performance-Based RSU Grant, which was re-measured upon stockholder approval of the amended 2006 Plan on May 22, 2014, as an insufficient number of shares were available to settle these RSUs upon initial grant on January 29, 2014. |
(2) | Represents vested RSUs that were settled in shares of the Company’s common stock. Total shares settled include 19,264 shares that were tendered in accordance with the terms of the 2006 Plan to satisfy minimum statutory tax withholding requirements related to the RSUs settled. We accept the return of RSUs at the current quoted closing share price of the Company’s common stock to satisfy tax obligations. |
(3) | Represents the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreement. |
(4) | Outstanding RSUs as of December 31, 2016 represent the achievement of the maximum performance conditions and assumed target levels for the market conditions. The number of restricted stock units ultimately earned is subject to change based upon actual performance over the three-year vesting period. Dividend equivalents earned will vest along with the underlying award and are also subject to changes based on the number of RSUs ultimately earned for each underlying award. |
RSUs Granted | RSUs Vested | ||||||||||||
Years ended December 31, | Non-Vested RSUs Granted | Weighted-Average Fair Value Per Share (1) | Vested RSUs | Total Vest-Date Fair Value (in thousands) | |||||||||
2016 | 258,393 | $ | 57.36 | (36,914 | ) | $ | 2,788 | ||||||
2015 | 191,483 | 79.25 | — | — | |||||||||
2014 | 183,365 | 64.86 | (16,338 | ) | 1,092 |
(1) | Represents the grant-date fair value for all awards, excluding the 2014 Performance-Based RSU Grant, which was re-measured upon stockholder approval of the amended 2006 Plan on May 22, 2014, as an insufficient number of shares were available to settle these RSUs upon initial grant on January 29, 2014. |
Nonvested RSUs | Vested RSUs | Total RSUs | ||||||||||
Amount | Weighted Average Fair Value Per Share (1) | |||||||||||
Outstanding at January 1, 2016 | 318,449 | $ | 58.91 | 951,360 | 1,269,809 | |||||||
Granted | 173,747 | 58.29 | — | 173,747 | ||||||||
Vested | (130,784 | ) | 57.91 | 130,784 | — | |||||||
Settled (2) | (72,148 | ) | (72,148 | ) | ||||||||
Issuance of dividend equivalents (3) | 5,027 | 65.78 | 23,243 | 28,270 | ||||||||
Canceled (4) | (4,489 | ) | (4,489 | ) | ||||||||
Outstanding as of December 31, 2016 | 366,439 | $ | 59.07 | 1,028,750 | 1,395,189 |
(1) | Represents the grant-date fair value for all awards, excluding the 2014 Performance-Based RSU Grant, which was re-measured upon stockholder approval of the amended 2006 Plan on May 22, 2014, as an insufficient number of shares were available to settle these RSUs upon initial grant on January 29, 2014. |
(2) | Represents vested RSUs that were settled in shares of the Company’s common stock. Total shares settled include 23,087 shares that were tendered in accordance with the terms of the 2006 Plan to satisfy minimum statutory tax withholding requirements related to the RSUs settled. We accept the return of RSUs at the current quoted closing share price of the Company’s common stock to satisfy tax obligations. |
(3) | Represents the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreement. |
(4) | For shares vested but not yet settled, we accept the return of RSUs at the current quoted closing share price of the Company’s common stock to satisfy minimum statutory tax-withholding requirements related to either the settlement or vesting of RSUs in accordance with the terms of the 2006 Plan. |
RSUs Granted | RSUs Vested | ||||||||||||
Year ended December 31, | Non-Vested RSUs Issued | Weighted-Average Grant Date Fair Value Per Share | Vested RSUs | Total Vest-Date Fair Value (1) (in thousands) | |||||||||
2016 | 173,747 | $ | 58.29 | (130,784 | ) | $ | 8,438 | ||||||
2015 | 98,802 | 74.49 | (107,541 | ) | 7,528 | ||||||||
2014 | 155,016 | 59.89 | (116,447 | ) | 6,675 |
(1) | Total fair value of RSUs vested was calculated based on the quoted closing share price of the Company’s common stock on the NYSE on the day of vesting. Excludes the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreement. |
Nonvested Restricted Stock | Weighted-Average Grant Date Fair Value Per Share | |||||
Outstanding at January 1, 2016 | 60,797 | $ | 47.32 | |||
Vested (1) | (24,262 | ) | 46.39 | |||
Outstanding as of December 31, 2016 | 36,535 | $ | 47.93 |
(1) | The total shares vested includes 12,661 shares that were tendered in accordance with the terms of the 2006 Plan to satisfy minimum statutory tax withholding requirements related to the restricted shares that have vested. We accept the return of shares at the current quoted closing share price of the Company’s common stock to satisfy tax withholding obligations. |
Shares Granted | Shares Vested | ||||||||||||
Years ended December 31, | Nonvested Shares Issued | Weighted-Average Grant Date Fair Value Per Share | Vested Shares | Total Fair Value at Vest Date(1) (in thousands) | |||||||||
2016 | — | $ | — | (24,262 | ) | $ | 1,527 | ||||||
2015 | — | — | (24,264 | ) | 1,725 | ||||||||
2014 | 213 | 51.35 | (25,899 | ) | 1,323 |
(1) | Total fair value of shares vested was calculated based on the quoted closing share price of the Company’s common stock on the NYSE on the date of vesting. |
February 2012 Option Grant | |
Fair value of options granted per share | $9.20 |
Expected stock price volatility | 33.00% |
Risk-free interest rate | 1.35% |
Dividend yield | 3.80% |
Expected life of option | 6.5 years |
Number of Options | Exercise Price | Intrinsic Value (in millions) (1) | ||||||||
Outstanding at December 31, 2015 | 610,000 | $ | 42.61 | $ | 12.6 | |||||
Exercised | (286,500 | ) | 42.61 | 8.4 | ||||||
Forfeited | (9,000 | ) | 42.61 | 0.1 | ||||||
Outstanding at December 31, 2016 (2) | 314,500 | $ | 42.61 | $ | 9.6 | |||||
Options exercisable at December 31, 2016 (3) | 50,500 | $ | 42.61 | $ | 1.5 |
(1) | The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds the exercise price of an option. The fair value of the underlying stock was determined by using the closing share price on the NYSE on the date of exercise, forfeiture or respective period end. |
(2) | As of December 31, 2016, the average remaining life of stock options outstanding was 5.1 years |
(3) | As of December 31, 2016, the average remaining life of stock options exercisable was approximately 5.1 years. |
16. | Employee Benefit Plans |
17. | Future Minimum Rent |
Year Ending | (in thousands) | ||
2017 | $ | 538,269 | |
2018 | 537,891 | ||
2019 | 493,998 | ||
2020 | 424,791 | ||
2021 | 370,941 | ||
Thereafter | 1,901,303 | ||
Total (1) | $ | 4,267,193 |
(1) | Excludes residential leases and leases with a term of one year or less. |
18. | Commitments and Contingencies |
Property | Contractual Expiration Date (1) |
601 108th Ave NE, Bellevue, WA | November 2093 |
701, 801 and 837 N. 34th Street, Seattle, WA (2) | December 2041 |
1701 Page Mill Road and 3150 Porter Drive, Palo Alto, CA | December 2067 |
Kilroy Airport Center Phases I, II, and III, Long Beach, CA | July 2084 |
(1) | Reflects the contractual expiration date prior to the impact of any extension or purchase options held by the Company. |
(2) | The Company has three 10 year and one 45 year extension options for this ground lease, which if exercised would extend the expiration date to December 2116. |
Year Ending | (in thousands) | ||
2017 | $ | 4,934 | |
2018 | 4,934 | ||
2019 | 4,934 | ||
2020 | 4,934 | ||
2021 | 4,934 | ||
Thereafter | 231,402 | ||
Total (1)(2)(3)(4)(5) | $ | 256,072 |
(2) | One of our ground lease obligations is subject to a fair market value adjustment every five years; however, the lease includes ground rent subprotection and infrastructure rent credits which currently limit our annual rental obligations to $1.0 million. The contractual obligations for that ground lease included above assumes the lesser of $1.0 million or annual lease rental obligation in effect as of December 31, 2016. |
(3) | One of our ground lease obligations includes a component which is based on the percentage of gross income that exceeds the minimum ground rent. The minimum rent is subject to increases every five years based on 50% of the average annual percentage rent for the previous five years. |
(4) | One of our ground lease obligations is subject to a fair market value adjustment every five years based on a combination of CPI adjustments and third-party appraisals limited to maximum increases annually. The contractual obligations included above assume the annual lease rental obligation in effect as of December 31, 2016. |
(5) | One of our ground lease obligations includes a component which is based on the percentage of adjusted gross income that exceeds the minimum ground rent. The minimum rent is subject to increases every 10 years by an amount equal to 60% of the average annual percentage rent for the previous three years. |
Fair Value (Level 1) (1) | |||||||
2016 | 2015 | ||||||
Description | (in thousands) | ||||||
Marketable securities (2) | $ | 14,773 | $ | 12,882 |
(1) | Based on quoted prices in active markets for identical securities. |
(2) | The marketable securities are held in a limited rabbi trust. |
December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Description | (in thousands) | ||||||||||
Net gain (loss) on marketable securities | $ | 1,130 | $ | (269 | ) | $ | 397 |
December 31, | |||||||||||||||
2016 | 2015 | ||||||||||||||
Carrying Value | Fair Value (1) | Carrying Value | Fair Value (1) | ||||||||||||
(in thousands) | |||||||||||||||
Liabilities | |||||||||||||||
Secured debt, net | $ | 472,772 | $ | 469,234 | $ | 380,835 | $ | 391,611 | |||||||
Unsecured debt, net | 1,847,351 | 1,900,487 | 1,844,634 | 1,898,863 |
(1) | Fair value calculated using Level II inputs, which are based on model-derived valuations in which significant inputs and significant value drivers are observable in active markets. |
21. | Discontinued Operations |
2014 | |||
(in thousands) | |||
Revenues: | |||
Rental income | $ | 7,206 | |
Tenant reimbursements | 278 | ||
Other property income | 13 | ||
Total revenues | 7,497 | ||
Expenses: | |||
Property expenses | 2,171 | ||
Real estate taxes | 692 | ||
Depreciation and amortization | 2,061 | ||
Total expenses | 4,924 | ||
Income from discontinued operations before net gain on dispositions of discontinued operations | 2,573 | ||
Net gain on dispositions of discontinued operations | 121,922 | ||
Total income from discontinued operations | $ | 124,495 |
22. | Net Income Available to Common Stockholders Per Share of the Company |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2016 | 2015 | 2014 | |||||||||||||||||
(in thousands, except unit and per unit amounts) | (in thousands, except unit and per unit amounts) | |||||||||||||||||||||
Numerator: | ||||||||||||||||||||||
Income (loss) from continuing operations | $ | 59,313 | $ | 14,935 | $ | (5,475 | ) | |||||||||||||||
(Income) loss from continuing operations attributable to noncontrolling common units of the Operating Partnership | (966 | ) | (36 | ) | 656 | |||||||||||||||||
Preferred distributions and dividends | (13,250 | ) | (13,250 | ) | (21,088 | ) | ||||||||||||||||
Income from continuing operations | $ | 303,798 | $ | 238,604 | $ | 59,313 | ||||||||||||||||
Income from continuing operations attributable to noncontrolling interests | (10,010 | ) | (4,523 | ) | (966 | ) | ||||||||||||||||
Preferred dividends and distributions | (13,250 | ) | (13,250 | ) | (13,250 | ) | ||||||||||||||||
Allocation to participating securities (1) | (1,699 | ) | (1,689 | ) | (1,602 | ) | (3,839 | ) | (1,634 | ) | (1,699 | ) | ||||||||||
Numerator for basic and diluted income (loss) from continuing operations available to common stockholders | 43,398 | (40 | ) | (27,509 | ) | |||||||||||||||||
Numerator for basic and diluted income from continuing operations available to common stockholders | 276,699 | 219,197 | 43,398 | |||||||||||||||||||
Income from discontinued operations | 124,495 | 29,630 | 282,576 | — | — | 124,495 | ||||||||||||||||
Income from discontinued operations attributable to noncontrolling common units of the Operating Partnership | (2,623 | ) | (649 | ) | (6,843 | ) | — | — | (2,623 | ) | ||||||||||||
Numerator for basic and diluted net income available to common stockholders | $ | 165,270 | $ | 28,941 | $ | 248,224 | $ | 276,699 | $ | 219,197 | $ | 165,270 | ||||||||||
Denominator: | ||||||||||||||||||||||
Basic weighted average vested shares outstanding | 83,090,235 | 77,343,853 | 69,639,623 | 92,342,483 | 89,854,096 | 83,090,235 | ||||||||||||||||
Effect of dilutive securities – contingently issuable shares and stock options | 1,877,485 | — | — | 680,551 | 541,679 | 1,877,485 | ||||||||||||||||
Diluted weighted average vested shares and common stock equivalents outstanding | 84,967,720 | 77,343,853 | 69,639,623 | 93,023,034 | 90,395,775 | 84,967,720 | ||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||
Income (loss) from continuing operations available to common stockholders per share | $ | 0.52 | $ | 0.00 | $ | (0.40 | ) | |||||||||||||||
Income from discontinued operations per share of common stock | 1.47 | 0.37 | 3.96 | |||||||||||||||||||
Income from continuing operations available to common stockholders per share | $ | 3.00 | $ | 2.44 | $ | 0.52 | ||||||||||||||||
Income from discontinued operations per share of common stock (2) | — | — | 1.47 | |||||||||||||||||||
Net income available to common stockholders per share | $ | 1.99 | $ | 0.37 | $ | 3.56 | $ | 3.00 | $ | 2.44 | $ | 1.99 | ||||||||||
Diluted earnings per share: | ||||||||||||||||||||||
Income (loss) from continuing operations available to common stockholders per share | $ | 0.51 | $ | 0.00 | $ | (0.40 | ) | |||||||||||||||
Income from discontinued operations per share of common stock | 1.44 | 0.37 | 3.96 | |||||||||||||||||||
Income from continuing operations available to common stockholders per share | $ | 2.97 | $ | 2.42 | $ | 0.51 | ||||||||||||||||
Income from discontinued operations per share of common stock (2) | — | — | 1.44 | |||||||||||||||||||
Net income available to common stockholders per share | $ | 1.95 | $ | 0.37 | $ | 3.56 | $ | 2.97 | $ | 2.42 | $ | 1.95 |
(1) | Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. |
(2) | The Company adopted ASU 2014-08 effective January 1, 2015 (see Note 2 “Basis of Presentation and Significant Accounting Policies” for additional information). As a result, properties classified as held for sale and/or disposed of subsequent to January 1, 2015 that do not represent a strategic shift are no longer presented as discontinued operations. |
Net Income Available to Common Unitholders Per Unit of the Operating Partnership |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2016 | 2015 | 2014 | |||||||||||||||||
(in thousands, except unit and per unit amounts) | (in thousands, except unit and per unit amounts) | |||||||||||||||||||||
Numerator: | ||||||||||||||||||||||
Income (loss) from continuing operations | $ | 59,313 | $ | 14,935 | $ | (5,475 | ) | |||||||||||||||
Income from continuing operations | $ | 303,798 | $ | 238,604 | $ | 59,313 | ||||||||||||||||
Income from continuing operations attributable to noncontrolling interests in consolidated subsidiaries | (247 | ) | (225 | ) | (176 | ) | (3,735 | ) | (467 | ) | (247 | ) | ||||||||||
Preferred distributions | (13,250 | ) | (13,250 | ) | (21,088 | ) | (13,250 | ) | (13,250 | ) | (13,250 | ) | ||||||||||
Allocation to participating securities (1) | (1,699 | ) | (1,689 | ) | (1,602 | ) | (3,839 | ) | (1,634 | ) | (1,699 | ) | ||||||||||
Numerator for basic and diluted income (loss) from continuing operations available to common unitholders | 44,117 | (229 | ) | (28,341 | ) | |||||||||||||||||
Numerator for basic and diluted income from continuing operations available to common unitholders | 282,974 | 223,253 | 44,117 | |||||||||||||||||||
Income from discontinued operations | 124,495 | 29,630 | 282,576 | — | — | 124,495 | ||||||||||||||||
(Income) loss from discontinued operations attributable to noncontrolling interests in consolidated subsidiaries | (13 | ) | 1 | (462 | ) | — | — | (13 | ) | |||||||||||||
Numerator for basic and diluted net income available to common unitholders | $ | 168,599 | $ | 29,402 | $ | 253,773 | $ | 282,974 | $ | 223,253 | $ | 168,599 | ||||||||||
Denominator: | ||||||||||||||||||||||
Basic weighted average vested units outstanding | 84,894,498 | 79,166,260 | 71,403,258 | 94,771,688 | 91,645,578 | 84,894,498 | ||||||||||||||||
Effect of dilutive securities - contingently issuable shares and stock options | 1,877,485 | — | — | 680,551 | 541,679 | 1,877,485 | ||||||||||||||||
Diluted weighted average vested units and common unit equivalents outstanding | 86,771,983 | 79,166,260 | 71,403,258 | 95,452,239 | 92,187,257 | 86,771,983 | ||||||||||||||||
Basic earnings per unit: | ||||||||||||||||||||||
Income (loss) from continuing operations available to common unitholders per unit | $ | 0.52 | $ | 0.00 | $ | (0.40 | ) | |||||||||||||||
Income from discontinued operations per common unit | 1.47 | 0.37 | 3.96 | |||||||||||||||||||
Income from continuing operations available to common unitholders per unit | $ | 2.99 | $ | 2.44 | $ | 0.52 | ||||||||||||||||
Income from discontinued operations per common unit (2) | — | — | 1.47 | |||||||||||||||||||
Net income available to common unitholders per unit | $ | 1.99 | $ | 0.37 | $ | 3.56 | $ | 2.99 | $ | 2.44 | $ | 1.99 | ||||||||||
Diluted earnings per unit: | ||||||||||||||||||||||
Income (loss) from continuing operations available to common unitholders per unit | $ | 0.51 | $ | 0.00 | $ | (0.40 | ) | |||||||||||||||
Income from discontinued operations per common unit | 1.43 | 0.37 | 3.96 | |||||||||||||||||||
Income from continuing operations available to common unitholders per unit | $ | 2.96 | $ | 2.42 | $ | 0.51 | ||||||||||||||||
Income from discontinued operations per common unit (2) | — | — | 1.43 | |||||||||||||||||||
Net income available to common unitholders per unit | $ | 1.94 | $ | 0.37 | $ | 3.56 | $ | 2.96 | $ | 2.42 | $ | 1.94 |
(1) | Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. |
(2) | The Operating Partnership adopted ASU 2014-08 effective January 1, 2015 (see Note 2 “Basis of Presentation and Significant Accounting Policies” for additional information). As a result, properties classified as held for sale and/or disposed of subsequent to January 1, 2015 that do not represent a strategic shift are no longer presented as discontinued operations. |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||||||
Cash paid for interest, net of capitalized interest of $47,675, $50,923, and $44,385 as of December 31, 2016, 2015 and 2014, respectively | $ | 54,295 | $ | 54,747 | $ | 58,944 | |||||
NON-CASH INVESTING TRANSACTIONS: | |||||||||||
Accrual for expenditures for operating properties and development and redevelopment properties | $ | 62,589 | $ | 109,715 | $ | 77,091 | |||||
Tenant improvements funded directly by tenants | $ | 18,050 | $ | 13,387 | $ | 42,906 | |||||
Assumption of other assets and liabilities in connection with operating and development property acquisitions, net (Note 3) | $ | 5,863 | $ | 6,254 | $ | 14,917 | |||||
Accrual for receivable related to development properties | $ | 1,350 | $ | — | $ | — | |||||
Release of holdback funds to third party | $ | — | $ | 9,279 | $ | — | |||||
NON-CASH FINANCING TRANSACTIONS: | |||||||||||
Accrual of dividends and distributions payable to common stockholders and common unitholders (Notes 13 and 29) | $ | 220,650 | $ | 33,336 | $ | 31,243 | |||||
Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders (Notes 13 and 29) | $ | 1,656 | $ | 1,656 | $ | 1,656 | |||||
Issuance of common units of the Operating Partnership in connection with an acquisition (Note 3) | $ | 48,033 | $ | — | $ | — | |||||
Secured debt assumed by buyers in connection with land disposition (Note 4) | $ | 2,322 | $ | — | $ | — | |||||
Issuance of shares of common stock in connection with a development property acquisition | $ | — | $ | — | $ | 21,631 | |||||
Exchange of common units of the Operating Partnership into shares of the Company’s common stock | $ | 8,893 | $ | 1,223 | $ | 28 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||||||
Cash paid for interest, net of capitalized interest of $47,675, $50,923, and $44,385 as of December 31, 2016, 2015 and 2014, respectively | $ | 54,295 | $ | 54,747 | $ | 58,944 | |||||
NON-CASH INVESTING TRANSACTIONS: | |||||||||||
Accrual for expenditures for operating properties and development and redevelopment properties | $ | 62,589 | $ | 109,715 | $ | 77,091 | |||||
Tenant improvements funded directly by tenants | $ | 18,050 | $ | 13,387 | $ | 42,906 | |||||
Assumption of other assets and liabilities in connection with operating and development property acquisitions, net (Note 3) | $ | 5,863 | $ | 6,254 | $ | 14,917 | |||||
Accrual for receivable related to development properties | $ | 1,350 | $ | — | $ | — | |||||
Release of holdback funds to third party | $ | — | $ | 9,279 | $ | — | |||||
NON-CASH FINANCING TRANSACTIONS: | |||||||||||
Accrual of dividends and distributions payable to common stockholders and common unitholders (Notes 14 and 29) | $ | 220,650 | $ | 33,336 | $ | 31,243 | |||||
Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders (Notes 14 and 29) | $ | 1,656 | $ | 1,656 | $ | 1,656 | |||||
Issuance of common units in connection with a development property acquisition (Note 3) | $ | 48,033 | $ | — | $ | 21,631 | |||||
Secured debt assumed by buyers in connection with land disposition (Note 4) | $ | 2,322 | $ | — | $ | — |
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||
Dividends | 2014 | 2013 | 2012 | 2016 | 2015 | 2014 | |||||||||||||
Dividends declared per share of common stock | 1.400 | 1.400 | 1.400 | $ | 3.375 | $ | 1.400 | $ | 1.400 | ||||||||||
Less: Dividends declared in the current year and paid in the following year | (0.350 | ) | (0.350 | ) | (0.350 | ) | (2.275 | ) | (0.350 | ) | (0.350 | ) | |||||||
Add: Dividends declared in the prior year and paid in the current year | 0.350 | 0.350 | 0.350 | 0.350 | 0.350 | 0.350 | |||||||||||||
Dividends paid per share of common stock | 1.400 | 1.400 | 1.400 | $ | 1.450 | $ | 1.400 | $ | 1.400 |
(1) | The fourth quarter 2016 dividend of $2.275 per share of common stock consists of a special cash dividend of $1.90 per share of common stock and a regular quarterly cash dividend of $0.375 per share of common stock. The $1.90 per share special distribution is treated as paid in two tax years for income tax purposes: $1.587 is treated as paid on December 31, 2016 and $0.313 is treated as paid on January 13, 2017. The $0.375 per share regular quarterly distribution is considered a 2017 dividend distribution for income tax purposes. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
Shares of Common Stock | 2014 | 2013 | 2012 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||||||
Ordinary income | $ | 0.998 | 71.29 | % | $ | 0.756 | 54.00 | % | $ | 0.577 | 41.21 | % | $ | 1.500 | 49.40 | % | $ | 0.992 | 70.86 | % | $ | 0.998 | 71.29 | % | ||||||||||||||||
Qualified dividend | 0.002 | 0.14 | 0.003 | 0.21 | — | — | 0.002 | 0.06 | 0.002 | 0.13 | 0.002 | 0.14 | ||||||||||||||||||||||||||||
Return of capital | 0.398 | 28.43 | 0.620 | 44.29 | 0.823 | 58.79 | — | — | — | — | 0.398 | 28.43 | ||||||||||||||||||||||||||||
Capital gains (1) | 0.002 | 0.14 | — | — | — | — | 1.212 | 39.89 | 0.051 | 3.65 | 0.002 | 0.14 | ||||||||||||||||||||||||||||
Unrecaptured section 1250 gains | — | — | 0.021 | 1.5 | — | — | 0.323 | 10.65 | 0.355 | 25.36 | — | — | ||||||||||||||||||||||||||||
$ | 1.400 | 100.00 | % | $ | 1.400 | 100.00 | % | $ | 1.400 | 100.00 | % | $ | 3.037 | 100.00 | % | $ | 1.400 | 100.00 | % | $ | 1.400 | 100.00 | % |
(1) | Capital gains are comprised entirely of 20% rate |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
Preferred Shares | 2014 | 2013 | 2012 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||||||
Ordinary income | $ | 1.711 | 99.54 | % | $ | 1.668 | 97.03 | % | $ | 1.089 | 100.00 | % | $ | 0.848 | 49.31 | % | $ | 1.218 | 70.86 | % | $ | 1.711 | 99.54 | % | ||||||||||||||||
Qualified dividend | 0.003 | 0.17 | 0.006 | 0.35 | — | — | 0.001 | 0.06 | 0.002 | 0.13 | 0.003 | 0.17 | ||||||||||||||||||||||||||||
Capital gains (1) | 0.005 | 0.29 | — | — | — | — | 0.687 | 39.97 | 0.063 | 3.65 | 0.005 | 0.29 | ||||||||||||||||||||||||||||
Unrecaptured section 1250 gains | — | — | 0.045 | 2.62 | — | — | 0.183 | 10.66 | 0.436 | 25.36 | — | — | ||||||||||||||||||||||||||||
$ | 1.719 | 100.00 | % | $ | 1.719 | 100.00 | % | $ | 1.089 | 100.00 | % | $ | 1.719 | 100.00 | % | $ | 1.719 | 100.00 | % | $ | 1.719 | 100.00 | % |
(1) | Capital gains are comprised entirely of 20% rate |
Year Ended December 31, | ||||||||||||||||||||
Preferred Shares | 2014 | 2013 | 2012 | |||||||||||||||||
Ordinary income | $ | 1.587 | 99.56 | % | $ | 1.546 | 96.99 | % | $ | 0.398 | 100.00 | % | ||||||||
Qualified dividend | 0.003 | 0.19 | 0.006 | 0.38 | — | — | ||||||||||||||
Capital gains (1) | 0.004 | 0.25 | — | — | — | — | ||||||||||||||
Unrecaptured section 1250 gains | — | — | 0.042 | 2.63 | — | — | ||||||||||||||
$ | 1.594 | 100.00 | % | $ | 1.594 | 100.00 | % | $ | 0.398 | 100.00 | % |
Preferred Shares | Year Ended December 31, 2012 | |||||
Ordinary income | $ | 0.818 | 100.00 | % | ||
Capital gains (1) | — | — | ||||
Unrecaptured section 1250 gains | — | — | ||||
$ | 0.818 | 100.00 | % |
Year Ended December 31, | ||||||||||||||||||||
Preferred Shares | 2016 | 2015 | 2014 | |||||||||||||||||
Ordinary income | $ | 0.786 | 49.31 | % | $ | 1.129 | 70.86 | % | $ | 1.587 | 99.56 | % | ||||||||
Qualified dividend | 0.001 | 0.06 | 0.002 | 0.13 | 0.003 | 0.19 | ||||||||||||||
Capital gains (1) | 0.637 | 39.97 | 0.059 | 3.65 | 0.004 | 0.25 | ||||||||||||||
Unrecaptured section 1250 gains | 0.17 | 10.66 | 0.404 | 25.36 | — | — | ||||||||||||||
$ | 1.594 | 100.00 | % | $ | 1.594 | 100.00 | % | $ | 1.594 | 100.00 | % |
(1) | Capital gains are comprised entirely of |
Preferred Shares | Year Ended December 31, 2012 | |||||
Ordinary income | $ | 0.786 | 100.00 | % | ||
Capital gains (1) | — | — | ||||
Unrecaptured section 1250 gains | — | — | ||||
$ | 0.786 | 100.00 | % |
Quarterly Financial Information of the Company (Unaudited) |
2014 Quarter Ended (1) | 2016 Quarter Ended (1) | |||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||
(in thousands, except per share amounts) | (in thousands, except per share amounts) | |||||||||||||||||||||||||||||
Revenues from continuing operations (2) | $ | 123,758 | $ | 127,178 | $ | 129,024 | $ | 141,765 | ||||||||||||||||||||||
Income from continuing operations (2) | 10,874 | 15,854 | 13,168 | 19,417 | ||||||||||||||||||||||||||
Income from discontinued operations (2) | 91,058 | 15,289 | 6,135 | 12,013 | ||||||||||||||||||||||||||
Revenues | $ | 145,446 | $ | 160,133 | $ | 168,348 | $ | 168,645 | ||||||||||||||||||||||
Net income | 101,932 | 31,143 | 19,303 | 31,430 | 178,113 | 33,892 | 56,375 | 35,418 | ||||||||||||||||||||||
Net income attributable to Kilroy Realty Corporation | 99,845 | 30,540 | 18,982 | 30,852 | 174,308 | 32,847 | 53,895 | 32,738 | ||||||||||||||||||||||
Preferred dividends and distributions | (3,313 | ) | (3,312 | ) | (3,313 | ) | (3,312 | ) | (3,313 | ) | (3,312 | ) | (3,313 | ) | (3,312 | ) | ||||||||||||||
Net income available to common stockholders | 96,532 | 27,228 | 15,669 | 27,540 | 170,995 | 29,535 | 50,582 | 29,426 | ||||||||||||||||||||||
Net income available to common stockholders per share – basic | 1.17 | 0.33 | 0.18 | 0.32 | 1.85 | 0.32 | 0.54 | 0.29 | ||||||||||||||||||||||
Net income available to common stockholders per share – diluted | 1.14 | 0.32 | 0.18 | 0.32 | 1.84 | 0.31 | 0.54 | 0.29 | ||||||||||||||||||||||
2013 Quarter Ended (1) | 2015 Quarter Ended (1) | |||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||
(in thousands, except per share amounts) | (in thousands, except per share amounts) | |||||||||||||||||||||||||||||
Revenues from continuing operations (2) | $ | 109,107 | $ | 115,855 | $ | 113,545 | $ | 118,604 | ||||||||||||||||||||||
(Loss) income from continuing operations (2) | (225 | ) | 6,942 | 3,180 | 5,038 | |||||||||||||||||||||||||
Income from discontinued operations (2) | 2,613 | 3,161 | 5,847 | 18,009 | ||||||||||||||||||||||||||
Revenues | $ | 146,082 | $ | 146,227 | $ | 141,553 | $ | 147,413 | ||||||||||||||||||||||
Net income | 2,388 | 10,103 | 9,027 | 23,047 | 44,002 | 58,590 | 106,704 | 29,308 | ||||||||||||||||||||||
Net income attributable to Kilroy Realty Corporation | 2,410 | 9,946 | 8,896 | 22,628 | 43,187 | 57,500 | 104,759 | 28,635 | ||||||||||||||||||||||
Preferred dividends and distributions | (3,313 | ) | (3,313 | ) | (3,312 | ) | (3,312 | ) | (3,313 | ) | (3,312 | ) | (3,313 | ) | (3,312 | ) | ||||||||||||||
Net (loss) income available to common stockholders | (903 | ) | 6,633 | 5,584 | 19,316 | |||||||||||||||||||||||||
Net (loss) income available to common stockholders per share – basic | (0.02 | ) | 0.08 | 0.07 | 0.23 | |||||||||||||||||||||||||
Net (loss) income available to common stockholders per share – diluted | (0.02 | ) | 0.08 | 0.07 | 0.23 | |||||||||||||||||||||||||
Net income available to common stockholders | 39,874 | 54,188 | 101,446 | 25,323 | ||||||||||||||||||||||||||
Net income available to common stockholders per share – basic | 0.45 | 0.61 | 1.10 | 0.27 | ||||||||||||||||||||||||||
Net income available to common stockholders per share – diluted | 0.45 | 0.61 | 1.09 | 0.27 |
(1) | The summation of the quarterly financial data may not equal the annual number reported on the consolidated statements of operations due to rounding. |
Quarterly Financial Information of the Operating Partnership (Unaudited) |
2014 Quarter Ended (1) | 2016 Quarter Ended (1) | |||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||
(in thousands, except per unit amounts) | (in thousands, except per unit amounts) | |||||||||||||||||||||||||||||
Revenues from continuing operations (2) | $ | 123,758 | $ | 127,178 | $ | 129,024 | $ | 141,765 | ||||||||||||||||||||||
Income from continuing operations (2) | 10,874 | 15,854 | 13,168 | 19,417 | ||||||||||||||||||||||||||
Income from discontinued operations (2) | 91,058 | 15,289 | 6,135 | 12,013 | ||||||||||||||||||||||||||
Revenues | $ | 145,446 | $ | 160,133 | $ | 168,348 | $ | 168,645 | ||||||||||||||||||||||
Net income | 101,932 | 31,143 | 19,303 | 31,430 | 178,113 | 33,892 | 56,375 | 35,418 | ||||||||||||||||||||||
Net income attributable to the Operating Partnership | 101,867 | 31,066 | 19,244 | 31,371 | 177,833 | 33,590 | 55,254 | 33,386 | ||||||||||||||||||||||
Preferred distributions | (3,313 | ) | (3,312 | ) | (3,313 | ) | (3,312 | ) | (3,313 | ) | (3,312 | ) | (3,313 | ) | (3,312 | ) | ||||||||||||||
Net income available to common unitholders | 98,554 | 27,754 | 15,931 | 28,059 | 174,520 | 30,278 | 51,941 | 30,074 | ||||||||||||||||||||||
Net income available to common unitholders per unit – basic | 1.17 | 0.33 | 0.18 | 0.32 | 1.85 | 0.31 | 0.54 | 0.29 | ||||||||||||||||||||||
Net income available to common unitholders per unit – diluted | 1.14 | 0.32 | 0.18 | 0.31 | 1.84 | 0.31 | 0.54 | 0.29 | ||||||||||||||||||||||
2013 Quarter Ended (1) | 2015 Quarter Ended (1) | |||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||
(in thousands, except per unit amounts) | (in thousands, except per unit amounts) | |||||||||||||||||||||||||||||
Revenues from continuing operations (2) | $ | 109,107 | $ | 115,855 | $ | 113,545 | $ | 118,604 | ||||||||||||||||||||||
(Loss) income from continuing operations (2) | (225 | ) | 6,942 | 3,180 | 5,038 | |||||||||||||||||||||||||
Income from discontinued operations (2) | 2,613 | 3,161 | 5,847 | 18,009 | ||||||||||||||||||||||||||
Revenues | $ | 146,082 | $ | 146,227 | $ | 141,553 | $ | 147,413 | ||||||||||||||||||||||
Net income | 2,388 | 10,103 | 9,027 | 23,047 | 44,002 | 58,590 | 106,704 | 29,308 | ||||||||||||||||||||||
Net income attributable to the Operating Partnership | 2,319 | 10,041 | 8,980 | 23,001 | 43,927 | 58,518 | 106,640 | 29,052 | ||||||||||||||||||||||
Preferred distributions | (3,313 | ) | (3,313 | ) | (3,312 | ) | (3,312 | ) | (3,313 | ) | (3,312 | ) | (3,313 | ) | (3,312 | ) | ||||||||||||||
Net (loss) income available to common unitholders | (994 | ) | 6,728 | 5,668 | 19,689 | |||||||||||||||||||||||||
Net (loss) income available to common unitholders per unit – basic | (0.02 | ) | 0.08 | 0.07 | 0.23 | |||||||||||||||||||||||||
Net (loss) income available to common unitholders per unit – diluted | (0.02 | ) | 0.08 | 0.07 | 0.23 | |||||||||||||||||||||||||
Net income available to common unitholders | 40,614 | 55,206 | 103,327 | 25,740 | ||||||||||||||||||||||||||
Net income available to common unitholders per unit – basic | 0.45 | 0.61 | 1.10 | 0.27 | ||||||||||||||||||||||||||
Net income available to common unitholders per unit – diluted | 0.45 | 0.61 | 1.09 | 0.27 |
(1) | The summation of the quarterly financial data may not equal the annual number reported on the consolidated statements of operations due to rounding. |
Subsequent Events |
Balance at Beginning of Period | Charged to Costs and Expenses (1) | Recoveries (Deductions) | Balance at End of Period (2) | ||||||||||||
Allowance for Uncollectible Tenant Receivables for the year ended December 31, | |||||||||||||||
2014 – Allowance for uncollectible tenant receivables | $ | 2,134 | $ | 58 | $ | (193 | ) | $ | 1,999 | ||||||
2013 – Allowance for uncollectible tenant receivables | 2,581 | 396 | (843 | ) | 2,134 | ||||||||||
2012 – Allowance for uncollectible tenant receivables | 2,590 | (42 | ) | 33 | 2,581 | ||||||||||
Allowance for Unbilled Deferred Rent for the year ended December 31, | |||||||||||||||
2014 – Allowance for deferred rent | $ | 2,075 | $ | — | $ | (86 | ) | $ | 1,989 | ||||||
2013 – Allowance for deferred rent | 2,607 | — | (532 | ) | 2,075 | ||||||||||
2012 – Allowance for deferred rent | 3,406 | — | (799 | ) | 2,607 |
Balance at Beginning of Period | Charged to Costs and Expenses | Recoveries (Deductions) | Balance at End of Period (1) | ||||||||||||
Allowance for Uncollectible Tenant Receivables for the year ended December 31, | |||||||||||||||
2016 – Allowance for uncollectible tenant receivables | $ | 2,080 | $ | — | $ | (368 | ) | $ | 1,712 | ||||||
2015 – Allowance for uncollectible tenant receivables | 1,999 | 303 | (222 | ) | 2,080 | ||||||||||
2014 – Allowance for uncollectible tenant receivables | 2,134 | 58 | (193 | ) | 1,999 | ||||||||||
Allowance for Deferred Rent Receivables for the year ended December 31, | |||||||||||||||
2016 – Allowance for deferred rent | $ | 1,882 | $ | — | $ | (358 | ) | $ | 1,524 | ||||||
2015 – Allowance for deferred rent | 1,989 | 242 | (349 | ) | 1,882 | ||||||||||
2014 – Allowance for deferred rent | 2,075 | — | (86 | ) | 1,989 |
Initial Cost | Gross Amounts at Which Carried at Close of Period | Initial Cost | Gross Amounts at Which Carried at Close of Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property Location | Encumb- rances | Land and improve-ments | Buildings and Improve- ments | Costs Capitalized Subsequent to Acquisition/ Improvement | Land and improve-ments | Buildings and Improve- ments | Total | Accumulated Depreciation | Deprecia- tion Life (1) | Date of Acquisition (A)/ Construction (C) (2) | Rentable Square Feet (3) (unaudited) | Encumb- rances | Land and improve- ments | Buildings and Improve- ments | Costs Capitalized Subsequent to Acquisition/ Improvement | Land and improve- ments | Buildings and Improve- ments | Total | Accumulated Depreciation | Deprecia- tion Life (1) | Date of Acquisition (A)/ Construction (C) (2) | Rentable Square Feet (3) (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office Properties: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23925 Park Sorrento, Calabasas, CA | $ | 6,568 | (5) | $ | 50 | $ | 2,346 | $ | 495 | $ | 50 | $ | 2,841 | $ | 2,891 | $ | 1,471 | 35 | 2001 | (C) | 11,789 | $ | 1,215 | (4) | $ | 50 | $ | 2,346 | $ | 495 | $ | 50 | $ | 2,841 | $ | 2,891 | $ | 1,703 | 35 | 2001 | ( C ) | 11,789 | ||||||||||||||||||||||||||||||||||||
23975 Park Sorrento, Calabasas, CA | (5) | 765 | 17,720 | 6,348 | 765 | 24,068 | 24,833 | 12,794 | 35 | 2002 | (C) | 104,797 | (4) | 765 | 17,720 | 7,579 | 765 | 25,299 | 26,064 | 14,562 | 35 | 2002 | ( C ) | 104,797 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
24025 Park Sorrento, Calabasas, CA | (5) | 845 | 15,896 | 4,755 | 845 | 20,651 | 21,496 | 11,620 | 35 | 2000 | (C) | 108,671 | (4) | 845 | 15,896 | 8,099 | 845 | 23,995 | 24,840 | 13,559 | 35 | 2000 | ( C ) | 108,670 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2829 Townsgate Rd., Thousand Oaks, CA | 5,248 | 8,001 | 7,025 | 5,248 | 15,026 | 20,274 | 8,938 | 35 | 1997 | (A) | 81,067 | 5,248 | 8,001 | 7,461 | 5,248 | 15,462 | 20,710 | 10,476 | 35 | 1997 | ( A ) | 84,098 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2240 E. Imperial Highway, El Segundo, CA | 1,044 | 11,763 | 29,362 | 1,047 | 41,122 | 42,169 | 20,421 | 35 | 1983 | (C) | 122,870 | 1,044 | 11,763 | 29,475 | 1,048 | 41,234 | 42,282 | 23,131 | 35 | 1983 | ( C ) | 122,870 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2250 E. Imperial Highway, El Segundo, CA | 2,579 | 29,062 | 34,713 | 2,547 | 63,807 | 66,354 | 44,738 | 35 | 1983 | (C) | 298,728 | 2,579 | 29,062 | 34,978 | 2,547 | 64,072 | 66,619 | 48,914 | 35 | 1983 | ( C ) | 298,728 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2260 E. Imperial Highway, El Segundo, CA | 2,518 | 28,370 | 36,381 | 2,547 | 64,722 | 67,269 | 5,081 | 35 | 1983 | (C) | 298,728 | 2,518 | 28,370 | 36,781 | 2,547 | 65,122 | 67,669 | 9,560 | 35 | 1983 | ( C ) | 298,728 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
909 N. Sepulveda Blvd., El Segundo, CA | 66,647 | (6) | 3,577 | 34,042 | 42,397 | 3,577 | 76,439 | 80,016 | 26,481 | 35 | 2005 | (C) | 241,607 | 3,577 | 34,042 | 46,328 | 3,577 | 80,370 | 83,947 | 32,004 | 35 | 2005 | ( C ) | 244,136 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
999 N. Sepulveda Blvd., El Segundo, CA | (6) | 1,407 | 34,326 | 11,857 | 1,407 | 46,183 | 47,590 | 16,648 | 35 | 2003 | (C) | 128,592 | 1,407 | 34,326 | 12,392 | 1,407 | 46,718 | 48,125 | 19,766 | 35 | 2003 | ( C ) | 128,588 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
6115 W. Sunset Blvd., Los Angeles, CA (5) | 1,313 | 3 | 24,922 | 2,455 | 23,783 | 26,238 | 901 | 35 | 2015 | ( C ) | 26,105 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6121 W. Sunset Blvd., Los Angeles, CA (5) | 11,120 | 4,256 | 71,644 | 8,703 | 78,317 | 87,020 | 3,299 | 35 | 2015 | ( C ) | 91,173 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1525 N. Gower Street Los Angeles, CA | 1,318 | 3 | 8,867 | 1,318 | 8,870 | 10,188 | 135 | 35 | 2016 | ( C ) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1575 N. Gower Street Los Angeles, CA | 22,153 | 51 | 97,669 | 22,153 | 97,720 | 119,873 | 607 | 35 | 2016 | ( C ) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1500 N. El Centro Avenue Los Angeles, CA | 9,235 | 21 | 36,477 | 9,235 | 36,498 | 45,733 | 36 | 35 | 2016 | ( C ) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1550 N. El Centro Avenue Los Angeles, CA (5) | 16,970 | 39 | 123,646 | 16,970 | 123,685 | 140,655 | 2,101 | 35 | 2016 | ( C ) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6255 W. Sunset Blvd., Los Angeles, CA | 51,877 | (8) | 18,111 | 60,320 | 27,831 | 18,111 | 88,151 | 106,262 | 8,173 | 35 | 2012 | (A) | 324,617 | 18,111 | 60,320 | 37,000 | 18,111 | 97,320 | 115,431 | 17,653 | 35 | 2012 | ( A ) | 323,922 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
3750 Kilroy Airport Way, Long Beach, CA | — | 1,941 | 10,455 | — | 12,396 | 12,396 | 8,938 | 35 | 1989 | (C) | 10,457 | — | 1,941 | 11,051 | — | 12,992 | 12,992 | 9,628 | 35 | 1989 | ( C ) | 10,457 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3760 Kilroy Airport Way, Long Beach, CA | — | 17,467 | 9,396 | — | 26,863 | 26,863 | 20,924 | 35 | 1989 | (C) | 165,278 | — | 17,467 | 11,652 | — | 29,119 | 29,119 | 23,203 | 35 | 1989 | ( C ) | 165,278 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3780 Kilroy Airport Way, Long Beach, CA | — | 22,319 | 15,763 | — | 38,082 | 38,082 | 31,437 | 35 | 1989 | (C) | 219,822 | — | 22,319 | 18,983 | — | 41,302 | 41,302 | 34,274 | 35 | 1989 | ( C ) | 219,745 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3800 Kilroy Airport Way, Long Beach, CA | — | 19,408 | 16,899 | — | 36,307 | 36,307 | 19,320 | 35 | 2000 | (C) | 192,476 | — | 19,408 | 18,504 | — | 37,912 | 37,912 | 21,532 | 35 | 2000 | ( C ) | 192,476 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3840 Kilroy Airport Way, Long Beach, CA | — | 13,586 | 9,236 | — | 22,822 | 22,822 | 12,535 | 35 | 1999 | (C) | 136,026 | — | 13,586 | 9,429 | — | 23,015 | 23,015 | 13,922 | 35 | 1999 | ( C ) | 136,026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3880 Kilroy Airport Way, Long Beach, CA | — | 9,704 | 7,310 | — | 17,014 | 17,014 | 1,114 | 35 | 1997 | (A) | 96,035 | — | 9,704 | 11,134 | — | 20,838 | 20,838 | 2,416 | 35 | 1997 | ( A ) | 96,035 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3900 Kilroy Airport Way, Long Beach, CA | — | 12,615 | 9,055 | — | 21,670 | 21,670 | 12,880 | 35 | 1997 | (A) | 126,840 | — | 12,615 | 11,009 | — | 23,624 | 23,624 | 14,967 | 35 | 1997 | ( A ) | 129,893 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kilroy Airport Center, Phase IV, Long Beach, CA(4) | — | — | 4,997 | — | 4,997 | 4,997 | 4,980 | 35 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kilroy Airport Center, Phase IV, Long Beach, CA (8) | — | 4,997 | — | 4,997 | 4,997 | 4,989 | 35 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8560 W. Sunset Blvd West Hollywood, CA | 9,720 | 50,956 | — | 9,720 | 50,956 | 60,676 | 170 | 35 | 2016 | ( A ) | 71,875 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8570 W. Sunset Blvd West Hollywood, CA | 31,693 | 27,974 | — | 31,693 | 27,974 | 59,667 | 82 | 35 | 2016 | ( A ) | 43,603 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8580 W. Sunset Blvd West Hollywood, CA | 10,013 | 3,695 | — | 10,013 | 3,695 | 13,708 | 11 | 35 | 2016 | ( A ) | 7,126 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8590 W. Sunset Blvd West Hollywood, CA | 39,954 | 27,884 | — | 39,954 | 27,884 | 67,838 | 92 | 35 | 2016 | ( A ) | 56,095 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12100 W. Olympic Blvd., Los Angeles, CA | 352 | 45,611 | 15,867 | 9,633 | 52,197 | 61,830 | 19,393 | 35 | 2003 | (C) | 150,167 | 170,000 | (9) | 352 | 45,611 | 17,548 | 9,633 | 53,878 | 63,511 | 23,595 | 35 | 2003 | ( C ) | 152,048 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
12200 W. Olympic Blvd., Los Angeles, CA | 4,329 | 35,488 | 16,135 | 3,977 | 51,975 | 55,952 | 29,665 | 35 | 2000 | (C) | 150,117 | (9) | 4,329 | 35,488 | 17,825 | 3,977 | 53,665 | 57,642 | 33,159 | 35 | 2000 | ( C ) | 150,832 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
12233 W. Olympic Blvd., Los Angeles, CA | 39,339 | (7) | 22,100 | 53,170 | 1,243 | 22,100 | 54,413 | 76,513 | 3,894 | 35 | 2012 | (A) | 151,029 | 22,100 | 53,170 | 3,712 | 22,100 | 56,882 | 78,982 | 7,382 | 35 | 2012 | ( A ) | 151,029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
12312 W. Olympic Blvd., Los Angeles, CA | 3,325 | 12,202 | 9,008 | 3,399 | 21,136 | 24,535 | 6,398 | 35 | 1997 | (A) | 76,644 | (9) | 3,325 | 12,202 | 11,326 | 3,399 | 23,454 | 26,853 | 9,129 | 35 | 1997 | ( A ) | 76,644 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
1633 26th St., Santa Monica, CA | 2,080 | 6,672 | 2,955 | 2,040 | 9,667 | 11,707 | 5,629 | 35 | 1997 | (A) | 44,915 | 2,080 | 6,672 | 2,966 | 2,040 | 9,678 | 11,718 | 6,364 | 35 | 1997 | ( A ) | 44,915 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2100/2110 Colorado Ave., Santa Monica, CA | 97,000 | (9) | 5,474 | 26,087 | 13,187 | 5,476 | 39,272 | 44,748 | 17,314 | 35 | 1997 | (A) | 102,864 | 94,754 | (10) | 5,474 | 26,087 | 14,411 | 5,476 | 40,496 | 45,972 | 20,616 | 35 | 1997 | ( A ) | 102,864 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
3130 Wilshire Blvd., Santa Monica, CA | 8,921 | 6,579 | 11,440 | 9,188 | 17,752 | 26,940 | 11,313 | 35 | 1997 | (A) | 88,339 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
501 Santa Monica Blvd., Santa Monica, CA | 4,547 | 12,044 | 7,194 | 4,552 | 19,233 | 23,785 | 11,011 | 35 | 1998 | (A) | 73,115 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2211 Michelson, Irvine, CA | (9) | 9,319 | 82,836 | 2,682 | 9,319 | 85,518 | 94,837 | 14,316 | 35 | 2010 | (A) | 271,556 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12225 El Camino Real, Del Mar, CA | 1,700 | 9,633 | 2,969 | 1,660 | 12,642 | 14,302 | 6,382 | 35 | 1998 | (A) | 58,401 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12235 El Camino Real, Del Mar, CA | 1,507 | 8,543 | 4,659 | 1,554 | 13,155 | 14,709 | 7,645 | 35 | 1998 | (A) | 54,673 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12340 El Camino Real, Del Mar, CA | (6) | 4,201 | 13,896 | 7,587 | 4,201 | 21,483 | 25,684 | 8,170 | 35 | 2002 | (C) | 87,374 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12390 El Camino Real, Del Mar, CA | (6) | 3,453 | 11,981 | 1,344 | 3,453 | 13,325 | 16,778 | 7,558 | 35 | 2000 | (C) | 72,332 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12348 High Bluff Dr., Del Mar, CA | 1,629 | 3,096 | 4,395 | 1,629 | 7,491 | 9,120 | 4,882 | 35 | 1999 | (C) | 38,806 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12400 High Bluff Dr., Del Mar, CA | 15,167 | 40,497 | 12,107 | 15,167 | 52,604 | 67,771 | 19,934 | 35 | 2004 | (C) | 209,220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3579 Valley Centre Dr., Del Mar, CA | 2,167 | 6,897 | 7,257 | 2,858 | 13,463 | 16,321 | 7,063 | 35 | 1999 | (C) | 50,677 |
Initial Cost | Gross Amounts at Which Carried at Close of Period | Initial Cost | Gross Amounts at Which Carried at Close of Period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property Location | Encumb- rances | Land and improve-ments | Buildings and Improve- ments | Costs Capitalized Subsequent to Acquisition/ Improvement | Land and improve-ments | Buildings and Improve- ments | Total | Accumulated Depreciation | Deprecia- tion Life (1) | Date of Acquisition (A)/ Construction (C) (2) | Rentable Square Feet (3) (unaudited) | Encumb- rances | Land and improve- ments | Buildings and Improve- ments | Costs Capitalized Subsequent to Acquisition/ Improvement | Land and improve- ments | Buildings and Improve- ments | Total | Accumulated Depreciation | Deprecia- tion Life (1) | Date of Acquisition (A)/ Construction (C) (2) | Rentable Square Feet (3) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3130 Wilshire Blvd., Santa Monica, CA | 8,921 | 6,579 | 12,137 | 9,188 | 18,449 | 27,637 | 12,835 | 35 | 1997 | ( A ) | 88,340 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
501 Santa Monica Blvd., Santa Monica, CA | (11) | 4,547 | 12,044 | 10,986 | 4,551 | 23,026 | 27,577 | 12,803 | 35 | 1998 | ( A ) | 73,212 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2211 Michelson, Irvine, CA | (10) | 9,319 | 82,836 | 5,310 | 9,319 | 88,146 | 97,465 | 20,843 | 35 | 2010 | ( A ) | 271,556 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
12225 El Camino Real, Del Mar, CA | 1,700 | 9,633 | 2,982 | 1,673 | 12,642 | 14,315 | 7,644 | 35 | 1998 | ( A ) | 58,401 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12235 El Camino Real, Del Mar, CA | 1,507 | 8,543 | 5,584 | 1,540 | 14,094 | 15,634 | 8,544 | 35 | 1998 | ( A ) | 53,751 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12340 El Camino Real, Del Mar, CA | 4,201 | 13,896 | 8,013 | 4,201 | 21,909 | 26,110 | 9,611 | 35 | 2002 | ( C ) | 87,774 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12390 El Camino Real, Del Mar, CA | 3,453 | 11,981 | 1,377 | 3,453 | 13,358 | 16,811 | 8,283 | 35 | 2000 | ( C ) | 72,332 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12348 High Bluff Dr., Del Mar, CA | 1,629 | 3,096 | 4,829 | 1,629 | 7,925 | 9,554 | 5,457 | 35 | 1999 | ( C ) | 38,806 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12400 High Bluff Dr., Del Mar, CA | (11) | 15,167 | 40,497 | 13,109 | 15,167 | 53,606 | 68,773 | 23,583 | 35 | 2004 | ( C ) | 209,220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
3579 Valley Centre Dr., Del Mar, CA | 2,167 | 6,897 | 7,419 | 2,858 | 13,625 | 16,483 | 8,426 | 35 | 1999 | ( C ) | 52,418 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3611 Valley Centre Dr., Del Mar, CA | $ | 4,184 | $ | 19,352 | $ | 18,063 | $ | 5,259 | $ | 36,340 | $ | 41,599 | $ | 17,821 | 35 | 2000 | (C) | 130,349 | 4,184 | 19,352 | 18,501 | 5,259 | 36,778 | 42,037 | 20,980 | 35 | 2000 | ( C ) | 130,047 | ||||||||||||||||||||||||||||||||||||||
3661 Valley Centre Dr., Del Mar, CA | 4,038 | 21,144 | 12,408 | 4,725 | 32,865 | 37,590 | 15,318 | 35 | 2001 | (C) | 129,782 | 4,038 | 21,144 | 13,100 | 4,725 | 33,557 | 38,282 | 17,605 | 35 | 2001 | ( C ) | 128,330 | |||||||||||||||||||||||||||||||||||||||||||||
3721 Valley Centre Dr., Del Mar, CA | 4,297 | 18,967 | 12,783 | 4,253 | 31,794 | 36,047 | 9,901 | 35 | 2003 | (C) | 114,780 | 4,297 | 18,967 | 14,468 | 4,254 | 33,478 | 37,732 | 12,666 | 35 | 2003 | ( C ) | 115,193 | |||||||||||||||||||||||||||||||||||||||||||||
3811 Valley Centre Dr., Del Mar, CA | 3,452 | 16,152 | 20,077 | 4,457 | 35,224 | 39,681 | 16,343 | 35 | 2000 | (C) | 112,067 | 3,452 | 16,152 | 20,092 | 4,457 | 35,239 | 39,696 | 18,943 | 35 | 2000 | ( C ) | 112,067 | |||||||||||||||||||||||||||||||||||||||||||||
7525 Torrey Santa Fe, 56 Corridor, CA | 2,348 | 28,035 | 4,061 | 2,348 | 32,096 | 34,444 | 8,882 | 35 | 2007 | (C) | 103,979 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7535 Torrey Santa Fe, 56 Corridor, CA | 2,950 | 33,808 | 5,991 | 2,949 | 39,800 | 42,749 | 11,407 | 35 | 2007 | (C) | 130,243 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7545 Torrey Santa Fe, 56 Corridor, CA | 2,950 | 33,708 | 8,118 | 2,950 | 41,826 | 44,776 | 12,868 | 35 | 2007 | (C) | 130,354 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7555 Torrey Santa Fe, 56 Corridor, CA | 2,287 | 24,916 | 3,714 | 2,287 | 28,630 | 30,917 | 7,909 | 35 | 2007 | (C) | 101,236 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12770 El Camino Real, Del Mar, CA | 9,360 | — | 26,880 | 9,360 | 26,880 | 36,240 | — | 35 | 2015 | ( C ) | 73,032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12780 El Camino Real, Del Mar, CA | 18,398 | 54,954 | 1,096 | 18,398 | 56,050 | 74,448 | 2,738 | 35 | 2013 | (A) | 140,591 | 18,398 | 54,954 | 1,626 | 18,398 | 56,580 | 74,978 | 7,289 | 35 | 2013 | ( A ) | 140,591 | |||||||||||||||||||||||||||||||||||||||||||||
12790 El Camino Real, Del Mar, CA | 10,252 | 21,236 | 611 | 10,252 | 21,847 | 32,099 | 1,080 | 35 | 2013 | (A) | 78,349 | 10,252 | 21,236 | 1,342 | 10,252 | 22,578 | 32,830 | 2,816 | 35 | 2013 | ( A ) | 78,836 | |||||||||||||||||||||||||||||||||||||||||||||
13280 Evening Creek Dr. South, I-15 Corridor, CA | 3,701 | 8,398 | 3,970 | 3,701 | 12,368 | 16,069 | 2,712 | 35 | 2008 | (C) | 41,196 | 3,701 | 8,398 | 4,589 | 3,701 | 12,987 | 16,688 | 3,945 | 35 | 2008 | ( C ) | 41,196 | |||||||||||||||||||||||||||||||||||||||||||||
13290 Evening Creek Dr. South, I-15 Corridor, CA | 5,229 | 11,871 | 5,919 | 5,229 | 17,790 | 23,019 | 2,583 | 35 | 2008 | (C) | 61,180 | 5,229 | 11,871 | 5,919 | 5,229 | 17,790 | 23,019 | 4,261 | 35 | 2008 | ( C ) | 61,180 | |||||||||||||||||||||||||||||||||||||||||||||
13480 Evening Creek Dr. North, I-15 Corridor, CA | 7,997 | — | 48,020 | 7,997 | 48,020 | 56,017 | 11,409 | 35 | 2008 | (C) | 149,817 | 7,997 | — | 48,100 | 7,997 | 48,100 | 56,097 | 15,057 | 35 | 2008 | ( C ) | 149,817 | |||||||||||||||||||||||||||||||||||||||||||||
13500 Evening Creek Dr. North, I-15 Corridor, CA | 7,581 | 35,903 | 8,201 | 7,580 | 44,105 | 51,685 | 14,251 | 35 | 2004 | (A) | 147,533 | 7,581 | 35,903 | 8,678 | 7,580 | 44,582 | 52,162 | 17,324 | 35 | 2004 | ( A ) | 147,533 | |||||||||||||||||||||||||||||||||||||||||||||
13520 Evening Creek Dr. North, I-15 Corridor, CA | 7,581 | 35,903 | 9,541 | 7,580 | 45,445 | 53,025 | 15,711 | 35 | 2004 | (A) | 141,128 | 7,581 | 35,903 | 11,687 | 7,580 | 47,591 | 55,171 | 19,088 | 35 | 2004 | ( A ) | 141,128 | |||||||||||||||||||||||||||||||||||||||||||||
2355 Northside Dr., Mission Valley, CA | 4,066 | 8,332 | 1,194 | 3,344 | 10,248 | 13,592 | 2,276 | 35 | 2010 | (A) | 53,610 | 4,066 | 8,332 | 2,297 | 3,344 | 11,351 | 14,695 | 3,392 | 35 | 2010 | ( A ) | 53,610 | |||||||||||||||||||||||||||||||||||||||||||||
2365 Northside Dr., Mission Valley, CA | 7,359 | 15,257 | 1,711 | 6,015 | 18,312 | 24,327 | 3,662 | 35 | 2010 | (A) | 96,436 | 7,359 | 15,257 | 7,332 | 6,015 | 23,933 | 29,948 | 6,206 | 35 | 2010 | ( A ) | 96,437 | |||||||||||||||||||||||||||||||||||||||||||||
2375 Northside Dr., Mission Valley, CA | 3,947 | 8,146 | 2,083 | 3,213 | 10,963 | 14,176 | 2,119 | 35 | 2010 | (A) | 51,516 | 3,947 | 8,146 | 2,659 | 3,213 | 11,539 | 14,752 | 3,278 | 35 | 2010 | ( A ) | 51,516 | |||||||||||||||||||||||||||||||||||||||||||||
2385 Northside Dr., Mission Valley, CA | 2,752 | 14,513 | 5,081 | 5,552 | 16,794 | 22,346 | 3,522 | 35 | 2010 | (A) | 89,023 | 2,752 | 14,513 | 5,299 | 5,552 | 17,012 | 22,564 | 5,212 | 35 | 2010 | ( A ) | 89,023 | |||||||||||||||||||||||||||||||||||||||||||||
2305 Historic Decatur Rd., Point Loma, CA | 5,240 | 22,220 | 1,035 | 5,240 | 23,255 | 28,495 | 4,086 | 35 | 2010 | (A) | 103,900 | 5,240 | 22,220 | 7,390 | 5,240 | 29,610 | 34,850 | 6,143 | 35 | 2010 | ( A ) | 103,900 | |||||||||||||||||||||||||||||||||||||||||||||
4921 Directors Place, Sorrento Mesa, CA | 3,792 | 11,091 | 4,845 | 3,792 | 15,936 | 19,728 | 3,353 | 35 | 2008 | (C) | 56,136 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4939 Directors Place, Sorrento Mesa, CA | 2,225 | 12,698 | 4,359 | 2,198 | 17,084 | 19,282 | 8,324 | 35 | 2002 | (C) | 60,662 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4955 Directors Place, Sorrento Mesa, CA | 2,521 | 14,122 | 3,697 | 3,179 | 17,161 | 20,340 | 12,205 | 35 | 2000 | (C) | 76,246 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10770 Wateridge Circle, Sorrento Mesa, CA | 4,560 | 26,671 | 236 | 4,560 | 26,907 | 31,467 | 7,055 | 35 | 2011 | (A) | 174,310 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6260 Sequence Dr., Sorrento Mesa, CA | 3,206 | 9,803 | 11,377 | 3,212 | 21,174 | 24,386 | 6,794 | 35 | 1997 | (A) | 130,536 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6290 Sequence Dr., Sorrento Mesa, CA | 2,403 | 7,349 | 6,944 | 2,407 | 14,289 | 16,696 | 7,935 | 35 | 1997 | (A) | 90,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6310 Sequence Dr., Sorrento Mesa, CA | 2,940 | 4,946 | 329 | 2,941 | 5,274 | 8,215 | 3,060 | 35 | 2000 | (C) | 62,415 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6340 Sequence Dr., Sorrento Mesa, CA | 2,434 | 7,302 | 9,965 | 2,465 | 17,236 | 19,701 | 9,571 | 35 | 1998 | (A) | 66,400 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6350 Sequence Dr., Sorrento Mesa, CA | 4,941 | 14,824 | 2,629 | 4,922 | 17,472 | 22,394 | 6,940 | 35 | 1998 | (A) | 132,600 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10390 Pacific Center Ct., Sorrento Mesa, CA | 3,267 | 5,779 | 7,501 | 3,267 | 13,280 | 16,547 | 5,352 | 35 | 2002 | (C) | 68,400 | 3,267 | 5,779 | 7,501 | 3,267 | 13,280 | 16,547 | 6,222 | 35 | 2002 | ( C ) | 68,400 | |||||||||||||||||||||||||||||||||||||||||||||
10394 Pacific Center Ct., Sorrento Mesa, CA | 2,696 | 7,134 | (780 | ) | 1,672 | 7,378 | 9,050 | 3,788 | 35 | 1998 | (A) | 59,630 | 2,696 | 7,134 | 661 | 1,671 | 8,820 | 10,491 | 4,312 | 35 | 1998 | ( A ) | 59,327 | ||||||||||||||||||||||||||||||||||||||||||||
10398 Pacific Center Ct., Sorrento Mesa, CA | 1,947 | 5,152 | 1,316 | 1,222 | 7,193 | 8,415 | 3,524 | 35 | 1998 | (A) | 43,645 | 1,947 | 5,152 | 1,317 | 1,222 | 7,194 | 8,416 | 4,224 | 35 | 1998 | ( A ) | 43,645 | |||||||||||||||||||||||||||||||||||||||||||||
10421 Pacific Center Ct., Sorrento Mesa, CA | 2,926 | 7,979 | 21,865 | 2,926 | 29,844 | 32,770 | 14,998 | 35 | 1998 | (A) | 75,899 | 2,926 | 7,979 | 22,097 | 2,926 | 30,076 | 33,002 | 18,321 | 35 | 1998 | ( A ) | 75,899 | |||||||||||||||||||||||||||||||||||||||||||||
10445 Pacific Center Ct., Sorrento Mesa, CA | 2,247 | 5,945 | 1,832 | 1,809 | 8,215 | 10,024 | 3,750 | 35 | 1998 | (A) | 48,709 | 2,247 | 5,945 | 1,832 | 1,809 | 8,215 | 10,024 | 4,941 | 35 | 1998 | ( A ) | 48,709 | |||||||||||||||||||||||||||||||||||||||||||||
10455 Pacific Center Ct., Sorrento Mesa, CA | 4,044 | 10,701 | (2,250 | ) | 3,780 | 8,715 | 12,495 | 4,250 | 35 | 1998 | (A) | 90,000 | 4,044 | 10,701 | 82 | 3,780 | 11,047 | 14,827 | 4,796 | 35 | 1998 | ( A ) | 88,577 | ||||||||||||||||||||||||||||||||||||||||||||
4690 Executive Dr., University Towne Centre, CA | 1,623 | 7,926 | 3,504 | 1,623 | 11,430 | 13,053 | 6,322 | 35 | 1999 | ( A ) | 47,846 |
Initial Cost | Gross Amounts at Which Carried at Close of Period | Initial Cost | Gross Amounts at Which Carried at Close of Period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property Location | Encumb- rances | Land and improve-ments | Buildings and Improve- ments | Costs Capitalized Subsequent to Acquisition/ Improvement | Land and improve-ments | Buildings and Improve- ments | Total | Accumulated Depreciation | Deprecia- tion Life (1) | Date of Acquisition (A)/ Construction (C) (2) | Rentable Square Feet (3) (unaudited) | Encumb- rances | Land and improve- ments | Buildings and Improve- ments | Costs Capitalized Subsequent to Acquisition/ Improvement | Land and improve- ments | Buildings and Improve- ments | Total | Accumulated Depreciation | Deprecia- tion Life (1) | Date of Acquisition (A)/ Construction (C) (2) | Rentable Square Feet (3) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5717 Pacific Center Blvd., Sorrento Mesa, CA | $ | 2,693 | $ | 6,280 | $ | 4,220 | $ | 2,693 | $ | 10,500 | $ | 13,193 | $ | 3,325 | 35 | 2001 | (C) | 67,995 | |||||||||||||||||||||||||||||||||||||||||||||||||||
4690 Executive Dr., University Towne Centre, CA | (6) | 1,623 | 7,926 | 2,604 | 1,623 | 10,530 | 12,153 | 5,688 | 35 | 1999 | (A) | 47,212 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6200 Greenwich Dr., Governor Park, CA | 1,583 | 5,235 | 7,458 | 1,762 | 12,514 | 14,276 | 5,115 | 35 | 1999 | (C) | 73,507 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6220 Greenwich Dr., Governor Park, CA | 3,213 | 10,628 | 18,927 | 3,386 | 29,382 | 32,768 | 9,991 | 35 | 1997 | (A) | 141,214 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4100 Bohannon Dr., Menlo Park, CA | 4,835 | 15,526 | 381 | 4,835 | 15,907 | 20,742 | 1,572 | 35 | 2012 | (A) | 47,379 | (11) | 4,835 | 15,526 | 505 | 4,860 | 16,006 | 20,866 | 2,752 | 35 | 2012 | ( A ) | 47,379 | ||||||||||||||||||||||||||||||||||||||||||||||
4200 Bohannon Dr., Menlo Park, CA | 4,798 | 15,406 | 1,856 | 4,798 | 17,262 | 22,060 | 1,572 | 35 | 2012 | (A) | 45,451 | (11) | 4,798 | 15,406 | 2,026 | 4,662 | 17,568 | 22,230 | 3,312 | 35 | 2012 | ( A ) | 45,451 | ||||||||||||||||||||||||||||||||||||||||||||||
4300 Bohannon Dr., Menlo Park, CA | 6,527 | 20,958 | 2,760 | 6,527 | 23,718 | 30,245 | 2,601 | 35 | 2012 | (A) | 63,079 | (11) | 6,527 | 20,958 | 2,749 | 6,470 | 23,764 | 30,234 | 5,031 | 35 | 2012 | ( A ) | 63,079 | ||||||||||||||||||||||||||||||||||||||||||||||
4400 Bohannon Dr., Menlo Park, CA | 4,798 | 15,406 | 1,818 | 4,798 | 17,224 | 22,022 | 1,823 | 35 | 2012 | (A) | 48,146 | (11) | 4,798 | 15,406 | 2,469 | 4,939 | 17,734 | 22,673 | 3,501 | 35 | 2012 | (A) | 48,146 | ||||||||||||||||||||||||||||||||||||||||||||||
4500 Bohannon Dr., Menlo Park, CA | 6,527 | 20,957 | 1,568 | 6,527 | 22,525 | 29,052 | 2,256 | 35 | 2012 | (A) | 63,078 | (11) | 6,527 | 20,957 | 1,729 | 6,470 | 22,743 | 29,213 | 3,939 | 35 | 2012 | ( A ) | 63,078 | ||||||||||||||||||||||||||||||||||||||||||||||
4600 Bohannon Dr., Menlo Park, CA | 4,798 | 15,406 | 1,922 | 4,798 | 17,328 | 22,126 | 1,459 | 35 | 2012 | (A) | 48,147 | (11) | 4,798 | 15,406 | 2,362 | 4,939 | 17,627 | 22,566 | 3,423 | 35 | 2012 | ( A ) | 48,147 | ||||||||||||||||||||||||||||||||||||||||||||||
4700 Bohannon Dr., Menlo Park, CA | 6,527 | 20,958 | 1,344 | 6,527 | 22,302 | 28,829 | 2,190 | 35 | 2012 | (A) | 63,078 | (11) | 6,527 | 20,958 | 1,397 | 6,470 | 22,412 | 28,882 | 3,825 | 35 | 2012 | ( A ) | 63,078 | ||||||||||||||||||||||||||||||||||||||||||||||
331 Fairchild Drive, CA | 18,396 | 17,712 | 7,883 | 18,396 | 25,595 | 43,991 | 1,075 | 35 | 2013 | (C) | 87,147 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
680 E. Middlefield Road, Mountain View, CA | 34,605 | — | 54,311 | 34,605 | 54,311 | 88,916 | 291 | 35 | 2014 | (C) | 170,090 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
690 E. Middlefield Road, Mountain View, CA | 34,755 | — | 58,036 | 34,755 | 58,036 | 92,791 | 292 | 35 | 2014 | (C) | 170,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
303 Second St., San Francisco, CA | 130,767 | (10) | 63,550 | 154,153 | 29,808 | 63,550 | 183,961 | 247,511 | 33,520 | 35 | 2010 | (A) | 740,047 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
100 First St., San Francisco, CA | 49,150 | 131,238 | 21,180 | 49,150 | 152,418 | 201,568 | 25,401 | 35 | 2010 | (A) | 466,490 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1290 - 1300 Terra Bella Avenue, Mountain View, CA | 28,730 | 27,555 | — | 28,730 | 27,555 | 56,285 | 810 | 35 | 2016 | ( A ) | 114,175 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
331 Fairchild Dr. Mountain View, CA | (11) | 18,396 | 17,712 | 7,955 | 18,396 | 25,667 | 44,063 | 2,871 | 35 | 2013 | ( C ) | 87,147 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
680 E. Middlefield Rd., Mountain View, CA | 34,605 | — | 56,464 | 34,605 | 56,464 | 91,069 | 4,099 | 35 | 2014 | ( C ) | 170,090 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
690 E. Middlefield Rd., Mountain View, CA | 34,755 | — | 56,707 | 34,755 | 56,707 | 91,462 | 4,116 | 35 | 2014 | ( C ) | 170,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1701 Page Mill Rd Palo Alto, CA | — | 99,522 | — | — | 99,522 | 99,522 | — | 35 | 2016 | ( A ) | 128,688 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3150 Porter Drive Palo Alto, CA | — | 21,715 | — | — | 21,715 | 21,715 | — | 35 | 2016 | ( A ) | 36,897 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
900 Jefferson Ave., Redwood City, CA (12) | 16,668 | — | 109,526 | 18,063 | 108,131 | 126,194 | 4,270 | 35 | 2015 | ( C ) | 228,505 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
900 Middlefield Rd., Redwood City, CA (12) | 7,959 | — | 49,592 | 8,626 | 48,925 | 57,551 | 1,801 | 35 | 2015 | ( C ) | 118,764 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
303 Second St., San Francisco, CA (13) | 125,756 | (14) | 63,550 | 154,153 | 46,607 | 63,550 | 200,760 | 264,310 | 50,705 | 35 | 2010 | ( A ) | 740,047 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
100 First St., San Francisco, CA (15) | 49,150 | 131,238 | 32,041 | 49,150 | 163,279 | 212,429 | 38,668 | 35 | 2010 | ( A ) | 467,095 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
250 Brannan St., San Francisco, CA | 7,630 | 22,770 | 4,322 | 7,630 | 27,092 | 34,722 | 4,747 | 35 | 2011 | (A) | 95,008 | 7,630 | 22,770 | 4,416 | 7,630 | 27,186 | 34,816 | 7,256 | 35 | 2011 | ( A ) | 95,008 | |||||||||||||||||||||||||||||||||||||||||||||||
201 Third St., San Francisco, CA | 19,260 | 84,018 | 21,473 | 19,260 | 105,491 | 124,751 | 18,065 | 35 | 2011 | (A) | 344,551 | 19,260 | 84,018 | 43,206 | 19,260 | 127,224 | 146,484 | 29,948 | 35 | 2011 | ( A ) | 346,538 | |||||||||||||||||||||||||||||||||||||||||||||||
301 Brannan St., San Francisco, CA | 5,910 | 22,450 | 1,785 | 5,910 | 24,235 | 30,145 | 3,135 | 35 | 2011 | (A) | 74,430 | 5,910 | 22,450 | 2,221 | 5,910 | 24,671 | 30,581 | 5,115 | 35 | 2011 | ( A ) | 74,430 | |||||||||||||||||||||||||||||||||||||||||||||||
360 Third St., San Francisco, CA | — | 88,235 | 108,122 | 28,504 | 167,853 | 196,357 | 10,834 | 35 | 2011 | (A) | 429,996 | — | 88,235 | 112,193 | 28,504 | 171,924 | 200,428 | 25,219 | 35 | 2011 | ( A ) | 429,796 | |||||||||||||||||||||||||||||||||||||||||||||||
333 Brannan San Francisco, CA | 18,645 | — | 77,623 | 18,645 | 77,623 | 96,268 | 1,838 | 35 | 2016 | ( C ) | 185,602 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
350 Mission Street San Francisco, CA | 52,815 | — | 210,133 | 52,815 | 210,133 | 262,948 | 4,590 | 35 | 2016 | ( C ) | 455,340 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1310 Chesapeake Terrace, Sunnyvale, CA | 16,700 | 11,020 | — | 16,700 | 11,020 | 27,720 | 82 | 35 | 2014 | (A) | 76,244 | (11) | 16,700 | 11,020 | 490 | 16,700 | 11,510 | 28,210 | 1,064 | 35 | 2014 | ( A ) | 76,244 | ||||||||||||||||||||||||||||||||||||||||||||||
1315 Chesapeake Terrace, Sunnyvale, CA | 12,260 | 7,930 | — | 12,260 | 7,930 | 20,190 | 76 | 35 | 2014 | (A) | 55,635 | (11) | 12,260 | 7,930 | 464 | 12,260 | 8,394 | 20,654 | 1,002 | 35 | 2014 | ( A ) | 55,635 | ||||||||||||||||||||||||||||||||||||||||||||||
1320-1324 Chesapeake Terrace, Sunnyvale, CA | 17,360 | 10,720 | — | 17,360 | 10,720 | 28,080 | 62 | 35 | 2014 | (A) | 79,720 | (11) | 17,360 | 10,720 | 544 | 17,360 | 11,264 | 28,624 | 1,385 | 35 | 2014 | ( A ) | 79,720 | ||||||||||||||||||||||||||||||||||||||||||||||
1325-1327 Chesapeake Terrace, Sunnyvale, CA | 12,610 | 8,160 | — | 12,610 | 8,160 | 20,770 | 79 | 35 | 2014 | (A) | 55,383 | (11) | 12,610 | 8,160 | 352 | 12,610 | 8,512 | 21,122 | 1,024 | 35 | 2014 | ( A ) | 55,383 | ||||||||||||||||||||||||||||||||||||||||||||||
505 Mathilda Ave., Sunnyvale, CA | 37,843 | 1,163 | 53,030 | 37,872 | 54,164 | 92,036 | 492 | 35 | 2014 | (C) | 212,322 | 37,843 | 1,163 | 50,554 | 37,943 | 51,617 | 89,560 | 3,442 | 35 | 2014 | ( C ) | 212,322 | |||||||||||||||||||||||||||||||||||||||||||||||
555 Mathilda Ave., Sunnyvale, CA | 37,843 | 1,163 | 53,026 | 37,872 | 54,160 | 92,032 | 492 | 35 | 2014 | (C) | 212,322 | 37,843 | 1,163 | 50,551 | 37,943 | 51,614 | 89,557 | 3,442 | 35 | 2014 | ( C ) | 212,322 | |||||||||||||||||||||||||||||||||||||||||||||||
605 Mathilda Ave., Sunnyvale, CA | 29,014 | 891 | 69,887 | 29,036 | 70,756 | 99,792 | 1,068 | 35 | 2014 | (C) | 162,785 | 29,014 | 891 | 77,359 | 29,090 | 78,174 | 107,264 | 7,479 | 35 | 2014 | ( C ) | 162,785 | |||||||||||||||||||||||||||||||||||||||||||||||
599 N. Mathilda Ave., Sunnyvale, CA | 13,538 | 12,559 | 59 | 13,538 | 12,618 | 26,156 | 1,181 | 35 | 2012 | (A) | 75,810 | 13,538 | 12,559 | 58 | 13,538 | 12,617 | 26,155 | 2,374 | 35 | 2012 | ( A ) | 75,810 | |||||||||||||||||||||||||||||||||||||||||||||||
601 108th Ave., Bellevue, WA | — | 214,095 | 21,988 | — | 236,083 | 236,083 | 32,892 | 35 | 2011 | (A) | 488,470 | — | 214,095 | 32,394 | — | 246,489 | 246,489 | 51,328 | 35 | 2011 | ( A ) | 488,470 | |||||||||||||||||||||||||||||||||||||||||||||||
10900 NE 4th St., Bellevue, WA | 25,080 | 150,877 | 19,537 | 25,080 | 170,414 | 195,494 | 16,265 | 35 | 2012 | (A) | 416,755 | 25,080 | 150,877 | 21,120 | 25,080 | 171,997 | 197,077 | 31,254 | 35 | 2012 | ( A ) | 416,755 | |||||||||||||||||||||||||||||||||||||||||||||||
10210 NE Points Dr., Kirkland, WA | 4,336 | 24,187 | 2,933 | 4,336 | 27,120 | 31,456 | 6,151 | 35 | 2011 | ( A ) | 84,641 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10220 NE Points Dr., Kirkland, WA | 26,205 | (11) | 2,554 | 12,080 | 634 | 2,554 | 12,714 | 15,268 | 1,825 | 35 | 2011 | (A) | 49,851 | 2,554 | 12,080 | 1,099 | 2,554 | 13,179 | 15,733 | 2,956 | 35 | 2011 | ( A ) | 49,851 | |||||||||||||||||||||||||||||||||||||||||||||
10230 NE Points Dr., Kirkland, WA | (11) | 5,071 | 24,694 | 2,497 | 5,070 | 27,192 | 32,262 | 3,948 | 35 | 2011 | (A) | 98,982 | 5,071 | 24,694 | 4,281 | 5,071 | 28,975 | 34,046 | 6,430 | 35 | 2011 | ( A ) | 98,982 | ||||||||||||||||||||||||||||||||||||||||||||||
10210 NE Points Dr., Kirkland, WA | (11) | 4,336 | 24,187 | 1,552 | 4,336 | 25,739 | 30,075 | 3,769 | 35 | 2011 | (A) | 84,641 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3933 Lake WA Blvd. NE, Kirkland, WA | (11) | 2,380 | 15,114 | 2,705 | 2,380 | 17,819 | 20,199 | 2,517 | 35 | 2011 | (A) | 46,450 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
837 N. 34th St., Lake Union, WA | — | 37,404 | 604 | — | 38,008 | 38,008 | 3,965 | 35 | 2012 | (A) | 111,580 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
701 N. 34th St., Lake Union, WA | 34,000 | (13) | — | 48,027 | 1,601 | — | 49,628 | 49,628 | 5,370 | 35 | 2012 | (A) | 138,995 |
Initial Cost | Gross Amounts at Which Carried at Close of Period | Initial Cost | Gross Amounts at Which Carried at Close of Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property Location | Encumb- rances | Land and improve-ments | Buildings and Improve- ments | Costs Capitalized Subsequent to Acquisition/ Improvement | Land and improve-ments | Buildings and Improve- ments | Total | Accumulated Depreciation | Deprecia- tion Life (1) | Date of Acquisition (A)/ Construction (C) (2) | Rentable Square Feet (3) (unaudited) | Encumb- rances | Land and improve- ments | Buildings and Improve- ments | Costs Capitalized Subsequent to Acquisition/ Improvement | Land and improve- ments | Buildings and Improve- ments | Total | Accumulated Depreciation | Deprecia- tion Life (1) | Date of Acquisition (A)/ Construction (C) (2) | Rentable Square Feet (3) (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3933 Lake WA Blvd. NE, Kirkland, WA | 2,380 | 15,114 | 4,965 | 2,380 | 20,079 | 22,459 | 4,331 | 35 | 2011 | ( A ) | 46,450 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
837 N. 34th St., Lake Union, WA | — | 37,404 | 2,547 | — | 39,951 | 39,951 | 6,914 | 35 | 2012 | ( A ) | 111,580 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
701 N. 34th St., Lake Union, WA | — | 48,027 | 4,186 | — | 52,213 | 52,213 | 9,942 | 35 | 2012 | ( A ) | 138,994 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
801 N. 34th St., Lake Union, WA | (13) | — | 58,537 | 1,166 | — | 59,703 | 59,703 | 5,690 | 35 | 2012 | (A) | 169,412 | — | 58,537 | 183 | — | 58,720 | 58,720 | 9,835 | 35 | 2012 | ( A ) | 169,412 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
320 Westlake Avenue North, WA | 81,198 | (12) | 14,710 | 82,018 | 1,114 | 14,710 | 83,132 | 97,842 | 5,392 | 35 | 2013 | (A) | 184,643 | 78,041 | (16) | 14,710 | 82,018 | 1,080 | 14,710 | 83,098 | 97,808 | 11,082 | 35 | 2013 | ( A ) | 184,643 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
321 Terry Avenue North, Lake Union, WA | (12) | 10,430 | 60,003 | 182 | 10,430 | 60,185 | 70,615 | 4,124 | 35 | 2013 | (A) | 135,755 | (16) | 10,430 | 60,003 | 244 | 10,430 | 60,247 | 70,677 | 8,463 | 35 | 2013 | ( A ) | 135,755 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
15050 N.E. 36th St., Redmond, WA | 9,260 | 34,650 | 197 | 9,260 | 34,847 | 44,107 | 4,644 | 35 | 2010 | (A) | 122,103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
401 Terry Avenue North, Lake Union, WA | 22,500 | 77,046 | — | 22,500 | 77,046 | 99,546 | 2,222 | 35 | 2014 | (A) | 140,605 | 22,500 | 77,046 | — | 22,500 | 77,046 | 99,546 | 7,556 | 35 | 2014 | ( A ) | 140,605 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL OPERATING PROPERTIES | $ | 533,601 | $ | 837,840 | $ | 2,866,029 | $ | 1,233,403 | $ | 877,633 | $ | 4,059,639 | $ | 4,937,272 | $ | 947,664 | 14,096,617 | 469,766 | 1,069,200 | 2,843,637 | 2,134,384 | 1,108,971 | 4,938,250 | 6,047,221 | 1,139,853 | 14,025,856 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Undeveloped land and construction in progress | $ | 2,421 | (14) | $ | 560,146 | $ | 4,370 | $ | 556,144 | $ | 560,146 | $ | 560,514 | $ | 1,120,660 | — | — | — | 671,113 | — | 342,420 | 671,113 | 342,420 | 1,013,533 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL ALL PROPERTIES | $ | 536,022 | (15) | $ | 1,397,986 | $ | 2,870,399 | $ | 1,789,547 | $ | 1,437,779 | $ | 4,620,153 | $ | 6,057,932 | $ | 947,664 | 14,096,617 | $ | 469,766 | (17) | $ | 1,740,313 | $ | 2,843,637 | $ | 2,476,804 | $ | 1,780,084 | $ | 5,280,670 | $ | 7,060,754 | $ | 1,139,853 | 14,025,856 | ||||||||||||||||||||||||||||||||||||||||||
(1) | The initial costs of buildings and improvements are depreciated over 35 years using a straight-line method of accounting; improvements capitalized subsequent to acquisition are depreciated over the shorter of the lease term or useful life, generally ranging from one to 20 years. |
(2) | Represents our date of construction or acquisition, or our predecessor, the Kilroy Group. |
(3) | Includes square footage from our stabilized portfolio. |
(4) | These properties secure a $1.2 million mortgage note. |
(5) | These properties include the costs of a shared parking structure for a complex that will be comprised of five office buildings and one residential tower upon completion. Once completed, the costs of the parking structure will be reallocated amongst the six buildings. |
(6) | These properties, comprised of 377,000 rentable square feet, are excluded from our stabilized portfolio as of December 31, 2016, as they are in the “lease-up” phase. |
(7) | This property represents the 200-unit Columbia Square - Residential tower that stabilized in 2016. |
(8) | These costs represent infrastructure costs incurred in 1989. During the third quarter of 2009, we exercised our option to terminate the ground lease at Kilroy Airport Center, Phase IV in Long Beach, California. We had previously leased this land, which is adjacent to our Office Properties at Kilroy Airport Center, Long Beach, for potential future development opportunities. |
(9) | These properties secure a |
(10) |
(11) | These properties secure |
(12) | These properties |
(13) | This property is owned by 303 Second Street Member LLC, a consolidated property partnership. |
(14) | This property secures a $125.8 million mortgage note. |
This property is owned by 100 First Street Member LLC, a consolidated property partnership. |
(16) | These properties secure a |
Represents gross aggregate principal amount before the effect of the unamortized premium of approximately |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2016 | 2015 | 2014 | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Total real estate held for investment, beginning of year | $ | 5,264,947 | $ | 4,757,394 | $ | 3,798,690 | $ | 6,328,146 | $ | 6,057,932 | $ | 5,264,947 | ||||||||||
Additions during period: | ||||||||||||||||||||||
Acquisitions | 340,296 | 384,650 | 1,023,384 | 460,957 | 139,123 | 340,296 | ||||||||||||||||
Improvements, etc. | 588,166 | 452,331 | 207,345 | 386,836 | 536,411 | 588,166 | ||||||||||||||||
Total additions during period | 928,462 | 836,981 | 1,230,729 | 847,793 | 675,534 | 928,462 | ||||||||||||||||
Deductions during period: | ||||||||||||||||||||||
Cost of real estate sold | (113,416 | ) | (56,993 | ) | (264,533 | ) | (68,200 | ) | (231,984 | ) | (113,416 | ) | ||||||||||
Properties held for sale | (14,700 | ) | (259,251 | ) | — | (13,193 | ) | (160,074 | ) | (14,700 | ) | |||||||||||
Other | (7,361 | ) | (13,184 | ) | (7,492 | ) | (33,792 | ) | (13,262 | ) | (7,361 | ) | ||||||||||
Total deductions during period | (135,477 | ) | (329,428 | ) | (272,025 | ) | (115,185 | ) | (405,320 | ) | (135,477 | ) | ||||||||||
Total real estate held for investment, end of year | $ | 6,057,932 | $ | 5,264,947 | $ | 4,757,394 | $ | 7,060,754 | $ | 6,328,146 | $ | 6,057,932 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2016 | 2015 | 2014 | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Accumulated depreciation, beginning of year | $ | 818,957 | $ | 756,515 | $ | 742,503 | $ | 994,241 | $ | 947,664 | $ | 818,957 | ||||||||||
Additions during period: | ||||||||||||||||||||||
Depreciation of real estate | 153,841 | 145,325 | 125,906 | 171,983 | 159,524 | 153,841 | ||||||||||||||||
Total additions during period | 153,841 | 145,325 | 125,906 | 171,983 | 159,524 | 153,841 | ||||||||||||||||
Deductions during period: | ||||||||||||||||||||||
Write-offs due to sale | (18,111 | ) | (17,144 | ) | (109,797 | ) | (22,471 | ) | (66,603 | ) | (18,111 | ) | ||||||||||
Properties held for sale | (7,007 | ) | (63,110 | ) | — | (3,900 | ) | (46,191 | ) | (7,007 | ) | |||||||||||
Other | (16 | ) | (2,629 | ) | (2,097 | ) | — | (153 | ) | (16 | ) | |||||||||||
Total deductions during period | (25,134 | ) | (82,883 | ) | (111,894 | ) | (26,371 | ) | (112,947 | ) | (25,134 | ) | ||||||||||
Accumulated depreciation, end of year | $ | 947,664 | $ | 818,957 | $ | 756,515 | $ | 1,139,853 | $ | 994,241 | $ | 947,664 |
Exhibit Number | Description | |
3.(i)1 | Kilroy Realty Corporation Articles of Restatement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2012) | |
3.(i)2 | Certificate of Limited Partnership of Kilroy Realty, L.P. (previously filed by Kilroy Realty, L.P., as an exhibit to the General Form for Registration of Securities on Form 10 as filed with the Securities and Exchange Commission on August 18, 2010) | |
3.(i)3 | Amendment to the Certificate of Limited Partnership of Kilroy Realty, L.P. (previously filed by Kilroy Realty, L.P., as an exhibit to the General Form for Registration of Securities on Form 10 as filed with the Securities and Exchange Commission on August 18, 2010) | |
3.(i)4 | Articles Supplementary designating Kilroy Realty Corporation’s 6.875% Series G Cumulative Redeemable Preferred Stock (previously filed by Kilroy Realty Corporation on Form 8-A as filed with the Securities and Exchange Commission on March 22, 2012) | |
3.(i)5 | Articles Supplementary designating Kilroy Realty Corporation’s 6.375% Series H Cumulative Redeemable Preferred Stock (previously filed by Kilroy Realty Corporation on Form 8-A as filed with the Securities and Exchange Commission on August 10, 2012) | |
3.(ii) | ||
3.(ii) | Seventh Amended and Restated Agreement of Limited Partnership of Kilroy Realty, L.P. dated August 15, 2012, as amended (previously filed by Kilroy Realty Corporation on Form 10-Q for the quarter ended June 30, 2014) | |
4.1 | Kilroy Realty Corporation Form of Certificate for Common Stock (previously filed by Kilroy Realty Corporation as an exhibit to the Registration Statement on Amendment No. 3 to Form S-11 (No. 333-15553)) | |
4.2 | Specimen Certificate for Kilroy Realty Corporation’s 6.875% Series G Cumulative Redeemable Preferred Stock (previously filed by Kilroy Realty Corporation on Form 8-A as filed with the Securities and Exchange Commission on March 22, 2012) | |
4.3 | Specimen Certificate for Kilroy Realty Corporation’s 6.375% Series H Cumulative Redeemable Preferred Stock (previously filed by Kilroy Realty Corporation on Form 8-A as filed with the Securities and Exchange Commission on August 10, 2012) | |
4.4 | Registration Rights Agreement, dated January 31, 1997 (previously filed by Kilroy Realty Corporation as an exhibit to the Registration Statement on Amendment No. 3 to Form S-11 (No. 333-15553)) | |
4.5 | ||
Form of Certificate for Partnership Units of Kilroy Realty, L.P. (previously filed by Kilroy Realty, L.P., as an exhibit to the General Form for Registration of Securities on Form 10 as filed with the Securities and Exchange Commission on August 18, 2010) | ||
Indenture, dated May 24, 2010, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee, including the form of 6.625% Senior Notes due 2020 and the form of the related guarantee (previously filed by Kilroy Realty Corporation as an exhibit on Form |
Officers’ Certificate pursuant to Sections 101, 201, 301 and 303 of the Indenture dated March 1, 2011, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee, establishing a series of securities entitled “4.800% Notes due 2018,” including the form of 4.800% Notes due 2018 and the form of related guarantee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on July 6, 2011) | ||
Registration Rights Agreement, dated July 31, 2012 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2012) |
Exhibit Number | Description | |
4.9 | Officers’ Certificate pursuant to Sections 101, 201, 301 and 303 of the Indenture dated March 1, 2011, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee, establishing a series of securities entitled “3.800% Notes due 2023,” including the form of 3.800% Notes due 2023 and the form of related guarantee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on January 14, 2013) | |
4.10 | Indenture, dated March 1, 2011, by and among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit to the Registration Statement on Form S-3 as filed with the Securities and Exchange Commission on October 2, 2013) | |
Supplemental Indenture, dated July 5, 2011, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit to the Registration Statement on Form S-3 as filed with the Securities and Exchange Commission on October 2, 2013) | ||
Officers’ Certificate pursuant to Sections 102, 201, 301 and 303 of the Indenture dated March 1, 2011, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee, establishing a series of securities entitled “4.25% Senior Notes due 2029,” including the form of 4.25% Senior Notes due 2029 and the form of related guarantee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on August 6, 2014) | ||
Officers’ Certificate, dated September 16, 2015, pursuant to Sections 102, 201, 301 and 303 of the Indenture dated March 1, 2011, among Kilroy Realty, L.P., as issuer, Kilroy Realty Corporation, as guarantor, and U.S. Bank National Association, as trustee, establishing a series of securities entitled “4.375% Senior Notes due 2025,” including the form of 4.375% Senior Notes due 2025 and the form of related guarantee (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on September 16, 2015) | ||
4.14 | The Company is party to agreements in connection with long-term debt obligations, none of which individually exceeds ten percent of the total assets of the Company on a consolidated basis. Pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, the Company agrees to furnish copies of these agreements to the Commission upon request | |
10.1 | Pledge Agreement by and among Kilroy Realty, L.P., John B. Kilroy, Sr., John B. Kilroy, Jr. and Kilroy Industries (previously filed by Kilroy Realty Corporation as an exhibit to the Registration Statement on Amendment No. 3 to Form S-11 (No. 333-15553)) | |
10.2† | 1997 Stock Option and Incentive Plan of the Registrant and Kilroy Realty, L.P. (previously filed by Kilroy Realty Corporation as an exhibit to the Registration Statement on Amendment No. 3 to Form S-11 (No. 333-15553)) | |
10.3 | ||
License Agreement by and among the Registrant and the other persons named therein (previously filed by Kilroy Realty Corporation as an exhibit to the Registration Statement on Amendment No. 4 to Form S-11 (No. 333-15553)) | ||
Form of Restricted Stock Award Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on February 8, 2007) | ||
Kilroy Realty Corporation Stock Award Deferral Program (previously filed by Kilroy Realty Corporation as an exhibit to Form 8-K as filed with the Securities and Exchange Commission on January 2, 2008) | ||
Form of Indemnification Agreement of Kilroy Realty Corporation with certain officers and directors (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-K for the year ended December 31, 2009) | ||
Deed of Trust, Security Agreement and Fixture Filing, dated January 12, 2011, executed by Kilroy Realty 303, LLC (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on January 13, 2011) | ||
Guaranty, dated January 12, 2011, executed by Kilroy Realty, L.P. (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on January 13, 2011) |
Exhibit Number | Description | |
10.9 | Unsecured Indemnity Agreement, dated January 12, 2011, executed by Kilroy Realty 303, LLC (previously filed by Kilroy Realty Corporation and Kilroy Realty, L.P. as an exhibit on Form 8−K as filed with the Securities and Exchange Commission on January 13, 2011) | |
Kilroy Realty Corporation Form of Stock Option Grant Notice and Stock Option Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on February 24, 2012) | ||
Amended and Restated Employment Agreement by and between Kilroy Realty Corporation, Kilroy Realty, L.P. and John B. Kilroy, Jr. (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on April 4, 2012) | ||
Noncompetition Agreement by and between Kilroy Realty Corporation, Kilroy Realty, L.P. and John B. Kilroy, Jr. (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on April 4, 2012) | ||
Term Loan Agreement, dated March 29, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on April 2, 2012) | ||
First Amendment to Term Loan Agreement, dated November 28, 2012 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-K for the year ended December 31, 2012) | ||
Promissory Note, dated June 28, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) | ||
Loan Agreement, dated June 28, 2012, by and between KR MML 12701, LLC and Massachusetts Mutual Life Insurance Company (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) |
Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing (Irvine) for 2211 Michelson Drive, Irvine, California, dated June 28, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) | ||
Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing (Santa Monica) for 2100-2110 Colorado Avenue, Santa Monica, California, dated June 28, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) | ||
Recourse Guaranty Agreement, dated June 28, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) | ||
Environmental Indemnification Agreement, dated June 28, 2012 (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on July 5, 2012) | ||
Kilroy Realty Corporation 2006 Incentive Award Plan Restricted Stock Unit Agreement by and between Kilroy Realty Corporation and Jeffrey C. Hawken, dated April 4, 2013 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2013) | ||
Kilroy Realty Corporation 2006 Incentive Award Plan Restricted Stock Unit Agreement by and between Kilroy Realty Corporation and John Kilroy, Jr., dated March 30, 2012 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2013) | ||
Form of Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2013) | ||
Form of Stock Award Deferral Program Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2013) | ||
Form of Performance-Vest Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2014) | ||
Form of Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2014) | ||
Form of Restricted Stock Unit Agreement for Non-Employee Members of the Board of Directors (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2014) | ||
Kilroy Realty 2006 Incentive Award Plan (previously filed by Kilroy Realty Corporation on Form 8-K as filed with the Securities and Exchange Commission on May |
Exhibit Number | Description | |
10.29 | Amended and Restated Revolving Credit Agreement, dated June 23, 2014 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2014) | |
Amended and Restated Guaranty, dated June 23, 2014 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended June 30, 2014) | ||
Term Loan Agreement, dated July 31, 2014 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended September 30, 2014) | ||
Guaranty, dated July 31, 2014 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended September 30, 2014) | ||
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and RBC Capital Markets, LLC (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) | ||
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and Jefferies LLC (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) | ||
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and KeyBanc Capital Markets Inc. (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) |
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and BNP Paribas Securities Corp. (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) | ||
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and J.P. Morgan Securities LLC (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) | ||
Sales Agreement, dated December 12, 2014, between Kilroy Realty Corporation, Kilroy Realty, L.P. and Barclays Capital Inc. (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on December 12, 2014) | ||
10.39† | Form of Performance-Vest Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2015) | |
10.40† | Form of Restricted Stock Unit Agreement (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2015) | |
10.41† | Form of Restricted Stock Unit Agreement for Non-Employee Members of the Board of Directors (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2015) | |
10.42† | Amended and Restated Employment Agreement and Non-Competition Agreement by and between Kilroy Realty Corporation, Kilroy Realty, L.P. and Jeffrey C. Hawken effective as of December 31, 2015 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-K for the year ended December 31, 2015) | |
10.43† | Kilroy Realty Corporation Director Compensation Policy effective as of January 1, 2016 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-K for the year ended December 31, 2015) | |
10.44† | Kilroy Realty Corporation 2006 Incentive Award Plan Restricted Stock Unit Agreement by and between Kilroy Realty Corporation and Jeffrey C. Hawken, dated January 9, 2016 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2016) | |
10.45† | Amended and Restated Employment Agreement and Non-Competition Agreement by and between Kilroy Realty Corporation, Kilroy Realty, L.P. and Tyler H. Rose effective as of January 28, 2016 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2016) | |
10.46† | Amended and Restated Employment Agreement and Non-Competition Agreement by and between Kilroy Realty Corporation, Kilroy Realty, L.P. and Justin W. Smart effective as of January 28, 2016 (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended March 31, 2016) |
Exhibit Number | Description | |
10.47 | Note Purchase Agreement dated September 14, 2016 (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on September 14, 2016) | |
10.48* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and RBC Capital Markets, LLC | |
10.49* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and Jefferies LLC | |
10.50* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and KeyBanc Capital Markets Inc. | |
10.51* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and BNP Paribas Securities Corp. | |
10.52* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and J.P. Morgan Securities LLC | |
10.53* | Amendment to Sales Agreement, dated September 29, 2016, between Kilroy Realty Corporation, Kilroy Realty, L.P. and Barclays Capital Inc. | |
10.54 | Form of Time Sharing Agreement of Kilroy Realty, L.P. (previously filed by Kilroy Realty Corporation as an exhibit on Form 10-Q for the quarter ended September 30, 2016) | |
10.55†* | Kilroy Realty Corporation 2007 Deferred Compensation Plan, as amended and restated effective January 1, 2017 | |
12.1* | Statement of Computation of Consolidated Ratio of Earnings to Fixed Charges and Consolidated Ratio of Earnings to Combined Fixed Charges and Preferred Dividends of Kilroy Realty Corporation | |
12.2* | Statement of Computation of Consolidated Ratio of Earnings to Fixed Charges of Kilroy Realty, L.P. | |
21.1* | List of Subsidiaries of Kilroy Realty Corporation | |
21.2* | List of Subsidiaries of Kilroy Realty, L.P. | |
23.1* | Consent of Deloitte & Touche LLP for Kilroy Realty Corporation | |
23.2* | Consent of Deloitte & Touche LLP for Kilroy Realty, L.P. | |
24.1* | Power of Attorney (included on the signature page of this Form 10-K) | |
31.1* | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of Kilroy Realty Corporation | |
31.2* | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Kilroy Realty Corporation | |
31.3* | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of Kilroy Realty, L.P. | |
31.4* | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Kilroy Realty, L.P. | |
32.1* | Section 1350 Certification of Chief Executive Officer of Kilroy Realty Corporation | |
32.2* | Section 1350 Certification of Chief Financial Officer of Kilroy Realty Corporation | |
32.3* | Section 1350 Certification of Chief Executive Officer of Kilroy Realty, L.P. | |
32.4* | Section 1350 Certification of Chief Financial Officer of Kilroy Realty, L.P. | |
101.1 | The following Kilroy Realty Corporation and Kilroy Realty, L.P. financial information for the year ended December 31, |
* | Filed herewith |
† | Management contract or compensatory plan or arrangement. |
(1) | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections. |