QUARTERLY 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.) |
(Registrant's telephone number, including area code) | ||||||||||
N/A | ||||||||||
(Former name, former address and former fiscal year, if changed since last report) |
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||
Registrant | Title of each class | Name of each exchange on which registered | Ticker Symbol | ||||||||
Kilroy Realty Corporation | Common Stock, $.01 par value | New York Stock Exchange | KRC |
Securities registered pursuant to Section 12(g) of the Act: | |||||
Registrant | Title of each class | ||||
Kilroy Realty, L.P. | Common Units Representing Limited Partnership Interests |
Page | |||||||||||
PART I – FINANCIAL INFORMATION | |||||||||||
Item 1. | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II – OTHER INFORMATION | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
REAL ESTATE ASSETS (Note 2): | |||||||||||
Land and improvements | $ | 1,715,192 | $ | 1,731,982 | |||||||
Buildings and improvements | 7,509,311 | 7,543,585 | |||||||||
Undeveloped land and construction in progress | 2,158,279 | 2,017,126 | |||||||||
Total real estate assets held for investment | 11,382,782 | 11,292,693 | |||||||||
Accumulated depreciation and amortization | (2,034,193) | (2,003,656) | |||||||||
Total real estate assets held for investment, net | 9,348,589 | 9,289,037 | |||||||||
CASH AND CASH EQUIVALENTS | 331,685 | 414,077 | |||||||||
RESTRICTED CASH | 13,007 | 13,006 | |||||||||
MARKETABLE SECURITIES (Note 10) | 25,829 | 27,475 | |||||||||
CURRENT RECEIVABLES, NET | 12,107 | 14,386 | |||||||||
DEFERRED RENT RECEIVABLES, NET | 420,895 | 405,665 | |||||||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 228,426 | 234,458 | |||||||||
RIGHT OF USE GROUND LEASE ASSETS | 126,946 | 127,302 | |||||||||
PREPAID EXPENSES AND OTHER ASSETS, NET | 57,338 | 57,991 | |||||||||
TOTAL ASSETS | $ | 10,564,822 | $ | 10,583,397 | |||||||
LIABILITIES AND EQUITY | |||||||||||
LIABILITIES: | |||||||||||
Secured debt, net (Notes 3 and 10) | $ | 247,030 | $ | 248,367 | |||||||
Unsecured debt, net (Notes 3 and 10) | 3,821,433 | 3,820,383 | |||||||||
Accounts payable, accrued expenses and other liabilities | 391,920 | 391,264 | |||||||||
Ground lease liabilities | 125,414 | 125,550 | |||||||||
Accrued dividends and distributions (Note 15) | 61,951 | 61,850 | |||||||||
Deferred revenue and acquisition-related intangible liabilities, net | 171,121 | 171,151 | |||||||||
Rents received in advance and tenant security deposits | 80,192 | 74,962 | |||||||||
Total liabilities | 4,899,061 | 4,893,527 | |||||||||
COMMITMENTS AND CONTINGENCIES (Note 9) | 0 | 0 | |||||||||
EQUITY: | |||||||||||
Stockholders’ Equity (Note 4): | |||||||||||
Common stock, $.01 par value, 280,000,000 shares authorized, 116,716,080 and 116,464,169 shares issued and outstanding, respectively | 1,167 | 1,165 | |||||||||
Additional paid-in capital | 5,149,968 | 5,155,232 | |||||||||
Retained earnings | 274,193 | 283,663 | |||||||||
Total stockholders’ equity | 5,425,328 | 5,440,060 | |||||||||
Noncontrolling Interests (Notes 1 and 5): | |||||||||||
Common units of the Operating Partnership | 53,472 | 53,746 | |||||||||
Noncontrolling interests in consolidated property partnerships | 186,961 | 196,064 | |||||||||
Total noncontrolling interests | 240,433 | 249,810 | |||||||||
Total equity | 5,665,761 | 5,689,870 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 10,564,822 | $ | 10,583,397 |
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | (unaudited) | ||||||
REAL ESTATE ASSETS: | |||||||
Land and improvements | $ | 1,076,172 | $ | 1,108,971 | |||
Buildings and improvements | 4,871,667 | 4,938,250 | |||||
Undeveloped land and construction in progress | 1,292,017 | 1,013,533 | |||||
Total real estate assets held for investment | 7,239,856 | 7,060,754 | |||||
Accumulated depreciation and amortization | (1,216,358 | ) | (1,139,853 | ) | |||
Total real estate assets held for investment, net | 6,023,498 | 5,920,901 | |||||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET | — | 9,417 | |||||
CASH AND CASH EQUIVALENTS | 64,954 | 193,418 | |||||
RESTRICTED CASH (Note 2) | 179,276 | 56,711 | |||||
MARKETABLE SECURITIES (Note 11) | 18,851 | 14,773 | |||||
CURRENT RECEIVABLES, NET (Note 3) | 18,626 | 13,460 | |||||
DEFERRED RENT RECEIVABLES, NET (Note 3) | 238,959 | 218,977 | |||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 185,420 | 208,368 | |||||
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 4) | 108,715 | 70,608 | |||||
TOTAL ASSETS | $ | 6,838,299 | $ | 6,706,633 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES: | |||||||
Secured debt, net (Notes 5 and 11) | $ | 465,828 | $ | 472,772 | |||
Unsecured debt, net (Notes 5 and 11) | 1,909,381 | 1,847,351 | |||||
Unsecured line of credit (Notes 5 and 11) | 60,000 | — | |||||
Accounts payable, accrued expenses and other liabilities | 271,405 | 202,391 | |||||
Accrued dividends and distributions (Note 16) | 43,324 | 222,306 | |||||
Deferred revenue and acquisition-related intangible liabilities, net | 145,556 | 150,360 | |||||
Rents received in advance and tenant security deposits | 46,925 | 52,080 | |||||
Liabilities of real estate assets held for sale | — | 56 | |||||
Total liabilities | 2,942,419 | 2,947,316 | |||||
COMMITMENTS AND CONTINGENCIES (Note 10) | |||||||
EQUITY: | |||||||
Stockholders’ Equity (Note 7): | |||||||
Preferred stock, $.01 par value, 30,000,000 shares authorized: | |||||||
6.875% Series G Cumulative Redeemable Preferred stock, $.01 par value, no shares issued and outstanding at 9/30/2017, and 4,000,000 shares authorized, issued and outstanding ($100,000 liquidation preference) at 12/31/2016 | — | 96,155 | |||||
6.375% Series H Cumulative Redeemable Preferred stock, $.01 par value, no shares issued and outstanding at 9/30/2017, and 4,000,000 shares authorized, issued and outstanding ($100,000 liquidation preference) at 12/31/2016 | — | 96,256 | |||||
Common stock, $.01 par value, 150,000,000 shares authorized, 98,382,256 and 93,219,439 shares issued and outstanding, respectively | 984 | 932 | |||||
Additional paid-in capital | 3,797,546 | 3,457,649 | |||||
Distributions in excess of earnings | (108,667 | ) | (107,997 | ) | |||
Total stockholders’ equity | 3,689,863 | 3,542,995 | |||||
Noncontrolling Interests: | |||||||
Common units of the Operating Partnership (Note 6) | 77,911 | 85,590 | |||||
Noncontrolling interests in consolidated property partnerships (Note 1) | 128,106 | 130,732 | |||||
Total noncontrolling interests | 206,017 | 216,322 | |||||
Total equity | 3,895,880 | 3,759,317 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 6,838,299 | $ | 6,706,633 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Rental income (Note 8) | $ | 263,208 | $ | 234,656 | |||||||||||||||||||
Other property income | 2,293 | 990 | |||||||||||||||||||||
Total revenues | 265,501 | 235,646 | |||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Property expenses | 45,424 | 38,859 | |||||||||||||||||||||
Real estate taxes | 25,870 | 25,266 | |||||||||||||||||||||
Ground leases | 1,826 | 1,828 | |||||||||||||||||||||
General and administrative expenses (Note 7) | 22,781 | 21,985 | |||||||||||||||||||||
Leasing costs | 1,013 | 692 | |||||||||||||||||||||
Depreciation and amortization | 88,660 | 75,932 | |||||||||||||||||||||
Total expenses | 185,574 | 164,562 | |||||||||||||||||||||
OTHER INCOME (EXPENSES) | |||||||||||||||||||||||
Interest and other income, net | 81 | 1,373 | |||||||||||||||||||||
Interest expense (Note 3) | (20,625) | (22,334) | |||||||||||||||||||||
Gain on sale of depreciable operating property | — | 457,288 | |||||||||||||||||||||
Total other (expenses) income | (20,544) | 436,327 | |||||||||||||||||||||
NET INCOME | 59,383 | 507,411 | |||||||||||||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | (516) | (4,886) | |||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | (5,739) | (4,894) | |||||||||||||||||||||
Total income attributable to noncontrolling interests | (6,255) | (9,780) | |||||||||||||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 53,128 | $ | 497,631 | |||||||||||||||||||
Net income available to common stockholders per share – basic (Note 11) | $ | 0.45 | $ | 4.27 | |||||||||||||||||||
Net income available to common stockholders per share – diluted (Note 11) | $ | 0.45 | $ | 4.26 | |||||||||||||||||||
Weighted average common shares outstanding – basic (Note 11) | 116,650,228 | 116,344,375 | |||||||||||||||||||||
Weighted average common shares outstanding – diluted (Note 11) | 117,060,094 | 116,801,384 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
REVENUES | |||||||||||||||
Rental income | $ | 159,954 | $ | 146,539 | $ | 475,527 | $ | 423,947 | |||||||
Tenant reimbursements | 19,665 | 16,406 | 58,228 | 43,948 | |||||||||||
Other property income | 1,915 | 5,403 | 7,685 | 6,032 | |||||||||||
Total revenues | 181,534 | 168,348 | 541,440 | 473,927 | |||||||||||
EXPENSES | |||||||||||||||
Property expenses | 33,070 | 30,050 | 97,615 | 85,236 | |||||||||||
Real estate taxes | 16,371 | 14,501 | 50,878 | 39,378 | |||||||||||
Provision for bad debts | 1,036 | — | 2,743 | — | |||||||||||
Ground leases | 1,562 | 909 | 4,751 | 2,506 | |||||||||||
General and administrative expenses | 14,514 | 13,533 | 43,750 | 40,949 | |||||||||||
Acquisition-related expenses (Note 1) | — | 188 | — | 964 | |||||||||||
Depreciation and amortization | 62,567 | 56,666 | 185,737 | 160,452 | |||||||||||
Total expenses | 129,120 | 115,847 | 385,474 | 329,485 | |||||||||||
OTHER (EXPENSES) INCOME | |||||||||||||||
Interest income and other net investment gains (Note 11) | 1,526 | 538 | 3,629 | 1,120 | |||||||||||
Interest expense (Note 5) | (16,151 | ) | (14,976 | ) | (51,476 | ) | (41,189 | ) | |||||||
Total other (expenses) income | (14,625 | ) | (14,438 | ) | (47,847 | ) | (40,069 | ) | |||||||
INCOME FROM OPERATIONS BEFORE GAINS (LOSS) ON SALES OF REAL ESTATE | 37,789 | 38,063 | 108,119 | 104,373 | |||||||||||
Net gain (loss) on sale of land (Note 2) | 449 | — | 449 | (295 | ) | ||||||||||
Gains on sales of depreciable operating properties (Note 2) | 37,250 | 18,312 | 39,507 | 164,302 | |||||||||||
NET INCOME | 75,488 | 56,375 | 148,075 | 268,380 | |||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership (Note 6) | (1,394 | ) | (1,453 | ) | (2,633 | ) | (5,892 | ) | |||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | (2,984 | ) | (1,027 | ) | (9,359 | ) | (1,438 | ) | |||||||
Total income attributable to noncontrolling interests | (4,378 | ) | (2,480 | ) | (11,992 | ) | (7,330 | ) | |||||||
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION | 71,110 | 53,895 | 136,083 | 261,050 | |||||||||||
Preferred dividends | (808 | ) | (3,313 | ) | (5,774 | ) | (9,938 | ) | |||||||
Original issuance costs of redeemed preferred stock and preferred units (Note 7) | (3,744 | ) | — | (7,589 | ) | — | |||||||||
Total preferred dividends | (4,552 | ) | (3,313 | ) | (13,363 | ) | (9,938 | ) | |||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 66,558 | $ | 50,582 | $ | 122,720 | $ | 251,112 | |||||||
Net income available to common stockholders per share – basic (Note 12) | $ | 0.67 | $ | 0.54 | $ | 1.24 | $ | 2.71 | |||||||
Net income available to common stockholders per share – diluted (Note 12) | $ | 0.67 | $ | 0.54 | $ | 1.23 | $ | 2.69 | |||||||
Weighted average common shares outstanding – basic (Note 12) | 98,352,139 | 92,227,016 | 98,008,780 | 92,220,522 | |||||||||||
Weighted average common shares outstanding – diluted (Note 12) | 98,911,612 | 92,920,406 | 98,591,048 | 92,831,538 | |||||||||||
Dividends declared per common share | $ | 0.425 | $ | 0.375 | $ | 1.225 | $ | 1.100 |
Common Stock | Total Stock- holders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||
Preferred Stock | Number of Shares | Common Stock | Additional Paid-in Capital | Retained Earnings / (Distributions in Excess of Earnings) | ||||||||||||||||||||||||||
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 | 261,050 | 261,050 | 7,330 | 268,380 | ||||||||||||||||||||||||||
Issuance of share-based compensation awards | 1,339 | 1,339 | 1,339 | |||||||||||||||||||||||||||
Non-cash amortization of share-based compensation | 19,303 | 19,303 | 19,303 | |||||||||||||||||||||||||||
Exercise of stock options | 51,000 | 2,173 | 2,173 | 2,173 | ||||||||||||||||||||||||||
Repurchase of common stock, stock options and restricted stock units | (110,528 | ) | (1 | ) | (6,873 | ) | (6,874 | ) | (6,874 | ) | ||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 72,130 | 1 | (1 | ) | — | — | ||||||||||||||||||||||||
Issuance of common units in connection with acquisition | 48,033 | 48,033 | ||||||||||||||||||||||||||||
Exchange of common units of the Operating Partnership | 1,200 | 39 | 39 | (39 | ) | — | ||||||||||||||||||||||||
Initial contribution from noncontrolling interest in consolidated property partnership, net of transaction costs | 113,022 | 113,022 | 78,654 | 191,676 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (1,139 | ) | (1,139 | ) | ||||||||||||||||||||||||||
Adjustment for noncontrolling interest | 14,822 | 14,822 | (14,822 | ) | — | |||||||||||||||||||||||||
Preferred dividends | (9,938 | ) | (9,938 | ) | (9,938 | ) | ||||||||||||||||||||||||
Dividends declared per common share and common unit ($1.10 per share/unit) | (102,743 | ) | (102,743 | ) | (2,894 | ) | (105,637 | ) | ||||||||||||||||||||||
BALANCE AS OF SEPTEMBER 30, 2016 | $ | 192,411 | 92,272,492 | $ | 923 | $ | 3,191,718 | $ | 78,107 | $ | 3,463,159 | $ | 178,743 | $ | 3,641,902 | |||||||||||||||
Common Stock | Total Stock- holders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2021 | 116,464,169 | $ | 1,165 | $ | 5,155,232 | $ | 283,663 | $ | 5,440,060 | $ | 249,810 | $ | 5,689,870 | ||||||||||||||||||||||||||||||||||
Net income | 53,128 | 53,128 | 6,255 | 59,383 | |||||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 1,942 | 1,942 | 1,942 | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation (Note 7) | 6,598 | 6,598 | 6,598 | ||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 459,050 | 5 | (5) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock and restricted stock units | (207,139) | (3) | (13,991) | (13,994) | (13,994) | ||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (14,842) | (14,842) | ||||||||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest | 192 | 192 | (192) | — | |||||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share and common unit ($0.52 per share/unit) | (62,598) | (62,598) | (598) | (63,196) | |||||||||||||||||||||||||||||||||||||||||||
BALANCE AS OF MARCH 31, 2022 | 116,716,080 | $ | 1,167 | $ | 5,149,968 | $ | 274,193 | $ | 5,425,328 | $ | 240,433 | $ | 5,665,761 | ||||||||||||||||||||||||||||||||||
Common Stock | Total Stock- holders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||
Preferred Stock | Number of Shares | Common Stock | Additional Paid-in Capital | Distributions in Excess of Earnings | ||||||||||||||||||||||||||
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 | ||||||||||||||
Net income | 136,083 | 136,083 | 11,992 | 148,075 | ||||||||||||||||||||||||||
Redemption of Series G and H Preferred stock (Note 7) | (192,411 | ) | (7,589 | ) | (200,000 | ) | (200,000 | ) | ||||||||||||||||||||||
Issuance of common stock (Note 7) | 4,427,500 | 44 | 308,768 | 308,812 | 308,812 | |||||||||||||||||||||||||
Issuance of share-based compensation awards | 5,291 | 5,291 | 5,291 | |||||||||||||||||||||||||||
Non-cash amortization of share-based compensation | 19,013 | 19,013 | 19,013 | |||||||||||||||||||||||||||
Exercise of stock options (Note 9) | 282,000 | 4 | 12,047 | 12,051 | 12,051 | |||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 317,848 | 3 | (3 | ) | — | — | ||||||||||||||||||||||||
Repurchase of common stock, stock options and restricted stock units | (168,881 | ) | (2 | ) | (12,984 | ) | (12,986 | ) | (12,986 | ) | ||||||||||||||||||||
Exchange of common units of the Operating Partnership | 304,350 | 3 | 10,936 | 10,939 | (10,939 | ) | — | |||||||||||||||||||||||
Contributions from noncontrolling interests in consolidated property partnerships | — | 250 | 250 | |||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (12,234 | ) | (12,234 | ) | |||||||||||||||||||||||||
Adjustment for noncontrolling interest | (3,171 | ) | (3,171 | ) | 3,171 | — | ||||||||||||||||||||||||
Preferred dividends | (5,774 | ) | (5,774 | ) | (5,774 | ) | ||||||||||||||||||||||||
Dividends declared per common share and common unit ($1.225 per share/unit) | (123,390 | ) | (123,390 | ) | (2,545 | ) | (125,935 | ) | ||||||||||||||||||||||
BALANCE AS OF SEPTEMBER 30, 2017 | $ | — | 98,382,256 | $ | 984 | $ | 3,797,546 | $ | (108,667 | ) | $ | 3,689,863 | $ | 206,017 | $ | 3,895,880 |
Common Stock | Total Stock- holders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||
Number of Shares | Common Stock | Additional Paid-in Capital | Retained Earnings (Distributions in Excess of Earnings) | ||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2020 | 116,035,827 | $ | 1,160 | $ | 5,131,916 | $ | (103,133) | $ | 5,029,943 | $ | 247,378 | $ | 5,277,321 | ||||||||||||||||||||||||||||
Net income | 497,631 | 497,631 | 9,780 | 507,411 | |||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 1,950 | 1,950 | 1,950 | ||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation | 9,604 | 9,604 | 9,604 | ||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 769,701 | 8 | (8) | — | — | ||||||||||||||||||||||||||||||||||||
Repurchase of common stock and restricted stock units | (355,158) | (3) | (21,134) | (21,137) | (21,137) | ||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (11,680) | (11,680) | ||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest | 256 | 256 | (256) | — | |||||||||||||||||||||||||||||||||||||
Dividends declared per common share and common unit ($0.500 per share/unit) | (60,002) | (60,002) | (575) | (60,577) | |||||||||||||||||||||||||||||||||||||
BALANCE AS OF MARCH 31, 2021 | 116,450,370 | $ | 1,165 | $ | 5,122,584 | $ | 334,496 | $ | 5,458,245 | $ | 244,647 | $ | 5,702,892 | ||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 59,383 | $ | 507,411 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of real estate assets and leasing costs | 87,001 | 74,431 | |||||||||
Depreciation of non-real estate furniture, fixtures and equipment | 1,659 | 1,501 | |||||||||
Revenue (recoveries) reversals for doubtful accounts, net (Note 8) | (1,311) | 1,035 | |||||||||
Non-cash amortization of share-based compensation awards | 5,256 | 7,877 | |||||||||
Non-cash amortization of deferred financing costs and debt discounts | 821 | 794 | |||||||||
Non-cash amortization of net below market rents | (2,892) | (1,181) | |||||||||
Gain on sale of depreciable operating property | — | (457,288) | |||||||||
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (4,261) | (4,204) | |||||||||
Straight-line rents | (13,847) | (17,292) | |||||||||
Amortization of right of use ground lease assets | 356 | 211 | |||||||||
Net change in other operating assets | 2,657 | 1,710 | |||||||||
Net change in other operating liabilities | 43,837 | 29,147 | |||||||||
Net cash provided by operating activities | 178,659 | 144,152 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Expenditures for acquisitions of development properties and undeveloped land (Note 2) | (40,033) | — | |||||||||
Expenditures for development and redevelopment properties and undeveloped land | (112,314) | (172,325) | |||||||||
Expenditures for operating properties and other capital assets | (17,027) | (28,242) | |||||||||
Net proceeds received from disposition | — | 1,012,817 | |||||||||
Net cash (used in) provided by investing activities | (169,374) | 812,250 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Financing costs | (318) | (235) | |||||||||
Repurchase of common stock and restricted stock units | (13,994) | (21,137) | |||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (14,834) | (11,672) | |||||||||
Dividends and distributions paid to common stockholders and common unitholders | (61,161) | (58,594) | |||||||||
Principal payments and repayments of secured debt | (1,369) | (1,316) | |||||||||
Net cash used in financing activities | (91,676) | (92,954) | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (82,391) | 863,448 | |||||||||
Cash and cash equivalents and restricted cash, beginning of period | 427,083 | 823,130 | |||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 344,692 | $ | 1,686,578 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 148,075 | $ | 268,380 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of real estate assets and leasing costs | 181,875 | 157,587 | |||||
Depreciation of non-real estate furniture, fixtures and equipment | 3,862 | 2,865 | |||||
Increase in provision for bad debts | 2,743 | — | |||||
Non-cash amortization of share-based compensation awards | 13,617 | 15,263 | |||||
Non-cash amortization of deferred financing costs and debt discounts and premiums | 2,398 | 2,020 | |||||
Non-cash amortization of net below market rents | (6,026 | ) | (5,128 | ) | |||
Gains on sales of depreciable operating properties (Note 2) | (39,507 | ) | (164,302 | ) | |||
(Gain) loss on sale of land (Note 2) | (449 | ) | 295 | ||||
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (12,394 | ) | (9,700 | ) | |||
Straight-line rents | (25,537 | ) | (22,856 | ) | |||
Net change in other operating assets | (16,970 | ) | (7,263 | ) | |||
Net change in other operating liabilities | 24,855 | 15,444 | |||||
Net cash provided by operating activities | 276,542 | 252,605 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Expenditures for development properties and undeveloped land | (270,839 | ) | (222,719 | ) | |||
Expenditures for operating properties and other capital assets | (61,875 | ) | (81,688 | ) | |||
Net proceeds received from dispositions (Note 2) | 182,492 | 325,031 | |||||
(Increase) decrease in acquisition-related deposits | (30,490 | ) | 1,902 | ||||
Expenditures for acquisition of operating properties | — | (55,415 | ) | ||||
Expenditures for acquisition of undeveloped land | — | (33,513 | ) | ||||
Increase in note receivable | — | (1,000 | ) | ||||
Net cash used in investing activities | (180,712 | ) | (67,402 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net proceeds from issuance of common stock (Note 7) | 308,812 | — | |||||
Redemption of Series G and H Preferred stock (Note 7) | (200,000 | ) | — | ||||
Proceeds from the issuance of unsecured debt (Note 5) | 250,000 | — | |||||
Repayments of unsecured debt (Note 5) | (189,000 | ) | — | ||||
Borrowings on unsecured revolving credit facility | 70,000 | 305,000 | |||||
Repayments on unsecured revolving credit facility | (10,000 | ) | (305,000 | ) | |||
Principal payments on secured debt | (5,740 | ) | (7,254 | ) | |||
Financing costs | (7,480 | ) | (1,485 | ) | |||
Repurchase of common stock and restricted stock units | (12,986 | ) | (6,874 | ) | |||
Proceeds from exercise of stock options | 12,051 | 2,173 | |||||
Contributions from noncontrolling interests in consolidated property partnerships | 250 | 191,676 | |||||
Distributions to noncontrolling interests in consolidated property partnerships | (12,234 | ) | (1,139 | ) | |||
Dividends and distributions paid to common stockholders and common unitholders | (297,993 | ) | (101,542 | ) | |||
Dividends and distributions paid to preferred stockholders and preferred unitholders (Note 7) | (7,409 | ) | (9,938 | ) | |||
Net cash (used in) provided by financing activities | (101,729 | ) | 65,617 | ||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (5,899 | ) | 250,820 | ||||
Cash and cash equivalents and restricted cash, beginning of period | 250,129 | 57,204 | |||||
Cash and cash equivalents and restricted cash, end of period | $ | 244,230 | $ | 308,024 |
March 31, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
REAL ESTATE ASSETS (Note 2): | |||||||||||
Land and improvements | $ | 1,715,192 | $ | 1,731,982 | |||||||
Buildings and improvements | 7,509,311 | 7,543,585 | |||||||||
Undeveloped land and construction in progress | 2,158,279 | 2,017,126 | |||||||||
Total real estate assets held for investment | 11,382,782 | 11,292,693 | |||||||||
Accumulated depreciation and amortization | (2,034,193) | (2,003,656) | |||||||||
Total real estate assets held for investment, net | 9,348,589 | 9,289,037 | |||||||||
CASH AND CASH EQUIVALENTS | 331,685 | 414,077 | |||||||||
RESTRICTED CASH | 13,007 | 13,006 | |||||||||
MARKETABLE SECURITIES (Note 10) | 25,829 | 27,475 | |||||||||
CURRENT RECEIVABLES, NET | 12,107 | 14,386 | |||||||||
DEFERRED RENT RECEIVABLES, NET | 420,895 | 405,665 | |||||||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 228,426 | 234,458 | |||||||||
RIGHT OF USE GROUND LEASE ASSETS | 126,946 | 127,302 | |||||||||
PREPAID EXPENSES AND OTHER ASSETS, NET | 57,338 | 57,991 | |||||||||
TOTAL ASSETS | $ | 10,564,822 | $ | 10,583,397 | |||||||
LIABILITIES AND CAPITAL | |||||||||||
LIABILITIES: | |||||||||||
Secured debt, net (Notes 3 and 10) | $ | 247,030 | $ | 248,367 | |||||||
Unsecured debt, net (Notes 3 and 10) | 3,821,433 | 3,820,383 | |||||||||
Accounts payable, accrued expenses and other liabilities | 391,920 | 391,264 | |||||||||
Ground lease liabilities | 125,414 | 125,550 | |||||||||
Accrued distributions (Note 15) | 61,951 | 61,850 | |||||||||
Deferred revenue and acquisition-related intangible liabilities, net | 171,121 | 171,151 | |||||||||
Rents received in advance and tenant security deposits | 80,192 | 74,962 | |||||||||
Total liabilities | 4,899,061 | 4,893,527 | |||||||||
COMMITMENTS AND CONTINGENCIES (Note 9) | 0 | 0 | |||||||||
CAPITAL: | |||||||||||
Common units, 116,716,080 and 116,464,169 held by the general partner and 1,150,574 and 1,150,574 held by common limited partners issued and outstanding, respectively (Note 5) | 5,478,800 | 5,493,806 | |||||||||
Noncontrolling interests in consolidated property partnerships (Note 1) | 186,961 | 196,064 | |||||||||
Total capital | 5,665,761 | 5,689,870 | |||||||||
TOTAL LIABILITIES AND CAPITAL | $ | 10,564,822 | $ | 10,583,397 |
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | (unaudited) | ||||||
REAL ESTATE ASSETS: | |||||||
Land and improvements | $ | 1,076,172 | $ | 1,108,971 | |||
Buildings and improvements | 4,871,667 | 4,938,250 | |||||
Undeveloped land and construction in progress | 1,292,017 | 1,013,533 | |||||
Total real estate assets held for investment | 7,239,856 | 7,060,754 | |||||
Accumulated depreciation and amortization | (1,216,358 | ) | (1,139,853 | ) | |||
Total real estate assets held for investment, net | 6,023,498 | 5,920,901 | |||||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET | — | 9,417 | |||||
CASH AND CASH EQUIVALENTS | 64,954 | 193,418 | |||||
RESTRICTED CASH (Note 2) | 179,276 | 56,711 | |||||
MARKETABLE SECURITIES (Note 11) | 18,851 | 14,773 | |||||
CURRENT RECEIVABLES, NET (Note 3) | 18,626 | 13,460 | |||||
DEFERRED RENT RECEIVABLES, NET (Note 3) | 238,959 | 218,977 | |||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 185,420 | 208,368 | |||||
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 4) | 108,715 | 70,608 | |||||
TOTAL ASSETS | $ | 6,838,299 | $ | 6,706,633 | |||
LIABILITIES AND CAPITAL | |||||||
LIABILITIES: | |||||||
Secured debt, net (Notes 5 and 11) | $ | 465,828 | $ | 472,772 | |||
Unsecured debt, net (Notes 5 and 11) | 1,909,381 | 1,847,351 | |||||
Unsecured line of credit (Notes 5 and 11) | 60,000 | — | |||||
Accounts payable, accrued expenses and other liabilities | 271,405 | 202,391 | |||||
Accrued distributions (Note 16) | 43,324 | 222,306 | |||||
Deferred revenue and acquisition-related intangible liabilities, net | 145,556 | 150,360 | |||||
Rents received in advance and tenant security deposits | 46,925 | 52,080 | |||||
Liabilities of real estate assets held for sale | — | 56 | |||||
Total liabilities | 2,942,419 | 2,947,316 | |||||
COMMITMENTS AND CONTINGENCIES (Note 10) | |||||||
CAPITAL: | |||||||
Partners’ Capital (Note 8): | |||||||
6.875% Series G Cumulative Redeemable Preferred units, no units issued and outstanding at 9/30/2017, 4,000,000 units issued and outstanding ($100,000 liquidation preference) at 12/31/2016 | — | 96,155 | |||||
6.375% Series H Cumulative Redeemable Preferred units, no units issued and outstanding at 9/30/2017, 4,000,000 units issued and outstanding ($100,000 liquidation preference) at 12/31/2016 | — | 96,256 | |||||
Common units, 98,382,256 and 93,219,439 held by the general partner and 2,077,193 and 2,381,543 held by common limited partners issued and outstanding, respectively | 3,763,078 | 3,431,768 | |||||
Total partners’ capital | 3,763,078 | 3,624,179 | |||||
Noncontrolling interests in consolidated property partnerships and subsidiaries (Note 1) | 132,802 | 135,138 | |||||
Total capital | 3,895,880 | 3,759,317 | |||||
TOTAL LIABILITIES AND CAPITAL | $ | 6,838,299 | $ | 6,706,633 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Rental income (Note 8) | $ | 263,208 | $ | 234,656 | |||||||||||||||||||
Other property income | 2,293 | 990 | |||||||||||||||||||||
Total revenues | 265,501 | 235,646 | |||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Property expenses | 45,424 | 38,859 | |||||||||||||||||||||
Real estate taxes | 25,870 | 25,266 | |||||||||||||||||||||
Ground leases | 1,826 | 1,828 | |||||||||||||||||||||
General and administrative expenses (Note 7) | 22,781 | 21,985 | |||||||||||||||||||||
Leasing costs | 1,013 | 692 | |||||||||||||||||||||
Depreciation and amortization | 88,660 | 75,932 | |||||||||||||||||||||
Total expenses | 185,574 | 164,562 | |||||||||||||||||||||
OTHER INCOME (EXPENSES) | |||||||||||||||||||||||
Interest and other income, net | 81 | 1,373 | |||||||||||||||||||||
Interest expense (Note 3) | (20,625) | (22,334) | |||||||||||||||||||||
Gain on sale of depreciable operating property | — | 457,288 | |||||||||||||||||||||
Total other (expenses) income | (20,544) | 436,327 | |||||||||||||||||||||
NET INCOME | 59,383 | 507,411 | |||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships and subsidiaries | (5,739) | (4,894) | |||||||||||||||||||||
NET INCOME AVAILABLE TO COMMON UNITHOLDERS | $ | 53,644 | $ | 502,517 | |||||||||||||||||||
Net income available to common unitholders per unit – basic (Note 12) | $ | 0.45 | $ | 4.27 | |||||||||||||||||||
Net income available to common unitholders per unit – diluted (Note 12) | $ | 0.45 | $ | 4.26 | |||||||||||||||||||
Weighted average common units outstanding – basic (Note 12) | 117,800,802 | 117,494,949 | |||||||||||||||||||||
Weighted average common units outstanding – diluted (Note 12) | 118,210,668 | 117,951,958 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
REVENUES | |||||||||||||||
Rental income | $ | 159,954 | $ | 146,539 | $ | 475,527 | $ | 423,947 | |||||||
Tenant reimbursements | 19,665 | 16,406 | 58,228 | 43,948 | |||||||||||
Other property income | 1,915 | 5,403 | 7,685 | 6,032 | |||||||||||
Total revenues | 181,534 | 168,348 | 541,440 | 473,927 | |||||||||||
EXPENSES | |||||||||||||||
Property expenses | 33,070 | 30,050 | 97,615 | 85,236 | |||||||||||
Real estate taxes | 16,371 | 14,501 | 50,878 | 39,378 | |||||||||||
Provision for bad debts | 1,036 | — | 2,743 | — | |||||||||||
Ground leases | 1,562 | 909 | 4,751 | 2,506 | |||||||||||
General and administrative expenses | 14,514 | 13,533 | 43,750 | 40,949 | |||||||||||
Acquisition-related expenses (Note 1) | — | 188 | — | 964 | |||||||||||
Depreciation and amortization | 62,567 | 56,666 | 185,737 | 160,452 | |||||||||||
Total expenses | 129,120 | 115,847 | 385,474 | 329,485 | |||||||||||
OTHER (EXPENSES) INCOME | |||||||||||||||
Interest income and other net investment gains (Note 11) | 1,526 | 538 | 3,629 | 1,120 | |||||||||||
Interest expense (Note 5) | (16,151 | ) | (14,976 | ) | (51,476 | ) | (41,189 | ) | |||||||
Total other (expenses) income | (14,625 | ) | (14,438 | ) | (47,847 | ) | (40,069 | ) | |||||||
INCOME FROM OPERATIONS BEFORE GAINS (LOSS) ON SALES OF REAL ESTATE | 37,789 | 38,063 | 108,119 | 104,373 | |||||||||||
Net gain (loss) on sale of land (Note 2) | 449 | — | 449 | (295 | ) | ||||||||||
Gains on sales of depreciable operating properties (Note 2) | 37,250 | 18,312 | 39,507 | 164,302 | |||||||||||
NET INCOME | 75,488 | 56,375 | 148,075 | 268,380 | |||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships and subsidiaries | (3,086 | ) | (1,121 | ) | (9,648 | ) | (1,703 | ) | |||||||
NET INCOME ATTRIBUTABLE TO KILROY REALTY, L.P. | 72,402 | 55,254 | 138,427 | 266,677 | |||||||||||
Preferred distributions | (808 | ) | (3,313 | ) | (5,774 | ) | (9,938 | ) | |||||||
Original issuance costs of redeemed preferred units (Note 8) | (3,744 | ) | — | (7,589 | ) | — | |||||||||
Total preferred distributions | (4,552 | ) | (3,313 | ) | (13,363 | ) | (9,938 | ) | |||||||
NET INCOME AVAILABLE TO COMMON UNITHOLDERS | $ | 67,850 | $ | 51,941 | $ | 125,064 | $ | 256,739 | |||||||
Net income available to common unitholders per unit – basic (Note 13) | $ | 0.67 | $ | 0.54 | $ | 1.23 | $ | 2.70 | |||||||
Net income available to common unitholders per unit – diluted (Note 13) | $ | 0.67 | $ | 0.54 | $ | 1.23 | $ | 2.68 | |||||||
Weighted average common units outstanding – basic (Note 13) | 100,429,332 | 94,858,292 | 100,160,595 | 94,630,183 | |||||||||||
Weighted average common units outstanding – diluted (Note 13) | 100,988,805 | 95,551,682 | 100,742,863 | 95,241,199 | |||||||||||
Dividends declared per common unit | $ | 0.425 | $ | 0.375 | $ | 1.225 | $ | 1.100 |
Partners’ Capital | Noncontrolling Interests in Consolidated Property Partnerships | ||||||||||||||||||||||||||||
Number of Common Units | Common Units | Total Capital | |||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2021 | 117,614,743 | $ | 5,493,806 | $ | 196,064 | $ | 5,689,870 | ||||||||||||||||||||||
Net income | 53,644 | 5,739 | 59,383 | ||||||||||||||||||||||||||
Issuance of share-based compensation awards | 1,942 | 1,942 | |||||||||||||||||||||||||||
Non-cash amortization of share-based compensation (Note 7) | 6,598 | 6,598 | |||||||||||||||||||||||||||
Settlement of restricted stock units | 459,050 | — | — | ||||||||||||||||||||||||||
Repurchase of common units and restricted stock units | (207,139) | (13,994) | (13,994) | ||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (14,842) | (14,842) | |||||||||||||||||||||||||||
Distributions declared per common unit ($0.52 per unit) | (63,196) | (63,196) | |||||||||||||||||||||||||||
BALANCE AS OF MARCH 31, 2022 | 117,866,654 | $ | 5,478,800 | $ | 186,961 | $ | 5,665,761 | ||||||||||||||||||||||
Partners’ Capital | Total Partners’ Capital | Noncontrolling Interests in Consolidated Property Partnerships and Subsidiaries | ||||||||||||||||||||
Preferred Units | Number of Common Units | Common Units | Total Capital | |||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2015 | $ | 192,411 | 94,023,465 | $ | 3,031,609 | $ | 3,224,020 | $ | 10,566 | $ | 3,234,586 | |||||||||||
Net income | 266,677 | 266,677 | 1,703 | 268,380 | ||||||||||||||||||
Issuance of common units in connection with acquisition | 867,701 | 48,033 | 48,033 | 48,033 | ||||||||||||||||||
Issuance of share-based compensation awards | 1,339 | 1,339 | 1,339 | |||||||||||||||||||
Non-cash amortization of share-based compensation | 19,303 | 19,303 | 19,303 | |||||||||||||||||||
Exercise of stock options | 51,000 | 2,173 | 2,173 | 2,173 | ||||||||||||||||||
Repurchase of common units, stock options and restricted stock units | (110,528 | ) | (6,874 | ) | (6,874 | ) | (6,874 | ) | ||||||||||||||
Settlement of restricted stock units | 72,130 | — | — | — | ||||||||||||||||||
Initial contribution from noncontrolling interest in consolidated property partnership, net of transaction costs | 113,022 | 113,022 | 78,654 | 191,676 | ||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (1,139 | ) | (1,139 | ) | ||||||||||||||||||
Preferred distributions | (9,938 | ) | (9,938 | ) | (9,938 | ) | ||||||||||||||||
Distributions declared per common unit ($1.10 per unit) | (105,637 | ) | (105,637 | ) | (105,637 | ) | ||||||||||||||||
BALANCE AS OF SEPTEMBER 30, 2016 | $ | 192,411 | 94,903,768 | $ | 3,359,707 | $ | 3,552,118 | $ | 89,784 | $ | 3,641,902 | |||||||||||
Partners’ Capital | Noncontrolling Interests in Consolidated Property Partnerships and Subsidiaries | ||||||||||||||||||||||
Number of Common Units | Common Units | Total Capital | |||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2020 | 117,186,401 | $ | 5,079,818 | $ | 197,503 | $ | 5,277,321 | ||||||||||||||||
Net income | 502,517 | 4,894 | 507,411 | ||||||||||||||||||||
Issuance of share-based compensation awards | 1,950 | 1,950 | |||||||||||||||||||||
Non-cash amortization of share-based compensation | 9,604 | 9,604 | |||||||||||||||||||||
Settlement of restricted stock units | 769,701 | — | — | ||||||||||||||||||||
Repurchase of common units and restricted stock units | (355,158) | (21,137) | (21,137) | ||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (11,680) | (11,680) | |||||||||||||||||||||
Distributions declared per common unit ($0.500 per unit) | (60,577) | (60,577) | |||||||||||||||||||||
BALANCE AS OF MARCH 31, 2021 | 117,600,944 | $ | 5,512,175 | $ | 190,717 | $ | 5,702,892 | ||||||||||||||||
Partners’ Capital | Total Partners’ Capital | Noncontrolling Interests in Consolidated Property Partnerships and Subsidiaries | ||||||||||||||||||||
Preferred Units | Number of Common Units | Common Units | Total Capital | |||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2016 | $ | 192,411 | 95,600,982 | $ | 3,431,768 | $ | 3,624,179 | $ | 135,138 | $ | 3,759,317 | |||||||||||
Net income | 138,427 | 138,427 | 9,648 | 148,075 | ||||||||||||||||||
Redemption of Series G and H Preferred units (Note 8) | (192,411 | ) | (7,589 | ) | (200,000 | ) | (200,000 | ) | ||||||||||||||
Issuance of common units (Note 8) | 4,427,500 | 308,812 | 308,812 | 308,812 | ||||||||||||||||||
Issuance of share-based compensation awards | 5,291 | 5,291 | 5,291 | |||||||||||||||||||
Non-cash amortization of share-based compensation | 19,013 | 19,013 | 19,013 | |||||||||||||||||||
Exercise of stock options (Note 9) | 282,000 | 12,051 | 12,051 | 12,051 | ||||||||||||||||||
Settlement of restricted stock units | 317,848 | — | — | — | ||||||||||||||||||
Repurchase of common units, stock options and restricted stock units | (168,881 | ) | (12,986 | ) | (12,986 | ) | (12,986 | ) | ||||||||||||||
Contributions from noncontrolling interests in consolidated property partnerships | 250 | 250 | ||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (12,234 | ) | (12,234 | ) | ||||||||||||||||||
Preferred distributions | (5,774 | ) | (5,774 | ) | (5,774 | ) | ||||||||||||||||
Distributions declared per common unit ($1.225 per unit) | (125,935 | ) | (125,935 | ) | (125,935 | ) | ||||||||||||||||
BALANCE AS OF SEPTEMBER 30, 2017 | $ | — | 100,459,449 | $ | 3,763,078 | $ | 3,763,078 | $ | 132,802 | $ | 3,895,880 |
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||
2017 | 2016 | 2022 | 2021 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net income | $ | 148,075 | $ | 268,380 | Net income | $ | 59,383 | $ | 507,411 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization of real estate assets and leasing costs | 181,875 | 157,587 | Depreciation and amortization of real estate assets and leasing costs | 87,001 | 74,431 | |||||||||||||
Depreciation of non-real estate furniture, fixtures and equipment | 3,862 | 2,865 | Depreciation of non-real estate furniture, fixtures and equipment | 1,659 | 1,501 | |||||||||||||
Increase in provision for bad debts | 2,743 | — | ||||||||||||||||
Revenue (recoveries) reversals for doubtful accounts, net (Note 8) | Revenue (recoveries) reversals for doubtful accounts, net (Note 8) | (1,311) | 1,035 | |||||||||||||||
Non-cash amortization of share-based compensation awards | 13,617 | 15,263 | Non-cash amortization of share-based compensation awards | 5,256 | 7,877 | |||||||||||||
Non-cash amortization of deferred financing costs and debt discounts and premiums | 2,398 | 2,020 | ||||||||||||||||
Non-cash amortization of deferred financing costs and debt discounts | Non-cash amortization of deferred financing costs and debt discounts | 821 | 794 | |||||||||||||||
Non-cash amortization of net below market rents | (6,026 | ) | (5,128 | ) | Non-cash amortization of net below market rents | (2,892) | (1,181) | |||||||||||
Gains on sales of depreciable operating properties (Note 2) | (39,507 | ) | (164,302 | ) | ||||||||||||||
(Gain) loss on sale of land (Note 2) | (449 | ) | 295 | |||||||||||||||
Gain on sale of depreciable operating property | Gain on sale of depreciable operating property | — | (457,288) | |||||||||||||||
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (12,394 | ) | (9,700 | ) | Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (4,261) | (4,204) | |||||||||||
Straight-line rents | (25,537 | ) | (22,856 | ) | Straight-line rents | (13,847) | (17,292) | |||||||||||
Amortization of right of use ground lease assets | Amortization of right of use ground lease assets | 356 | 211 | |||||||||||||||
Net change in other operating assets | (16,970 | ) | (7,263 | ) | Net change in other operating assets | 2,657 | 1,710 | |||||||||||
Net change in other operating liabilities | 24,855 | 15,444 | Net change in other operating liabilities | 43,837 | 29,147 | |||||||||||||
Net cash provided by operating activities | 276,542 | 252,605 | Net cash provided by operating activities | 178,659 | 144,152 | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Expenditures for development properties and undeveloped land | (270,839 | ) | (222,719 | ) | ||||||||||||||
Expenditures for acquisition of development properties and undeveloped land (Note 2) | Expenditures for acquisition of development properties and undeveloped land (Note 2) | (40,033) | — | |||||||||||||||
Expenditures for development and redevelopment properties and undeveloped land | Expenditures for development and redevelopment properties and undeveloped land | (112,314) | (172,325) | |||||||||||||||
Expenditures for operating properties and other capital assets | (61,875 | ) | (81,688 | ) | Expenditures for operating properties and other capital assets | (17,027) | (28,242) | |||||||||||
Net proceeds received from dispositions (Note 2) | 182,492 | 325,031 | ||||||||||||||||
(Increase) decrease in acquisition-related deposits | (30,490 | ) | 1,902 | |||||||||||||||
Expenditures for acquisition of operating properties | — | (55,415 | ) | |||||||||||||||
Expenditures for acquisition of undeveloped land | — | (33,513 | ) | |||||||||||||||
Increase in note receivable | — | (1,000 | ) | |||||||||||||||
Net cash used in investing activities | (180,712 | ) | (67,402 | ) | ||||||||||||||
Net proceeds received from disposition | Net proceeds received from disposition | — | 1,012,817 | |||||||||||||||
Net cash (used in) provided by investing activities | Net cash (used in) provided by investing activities | (169,374) | 812,250 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Net proceeds from issuance of common units (Note 8) | 308,812 | — | ||||||||||||||||
Redemption of Series G and H Preferred units (Note 8) | (200,000 | ) | — | |||||||||||||||
Proceeds from the issuance of unsecured debt (Note 5) | 250,000 | — | ||||||||||||||||
Repayments of unsecured debt (Note 5) | (189,000 | ) | — | |||||||||||||||
Borrowings on unsecured revolving credit facility | 70,000 | 305,000 | ||||||||||||||||
Repayments on unsecured revolving credit facility | (10,000 | ) | (305,000 | ) | ||||||||||||||
Principal payments on secured debt | (5,740 | ) | (7,254 | ) | ||||||||||||||
Financing costs | (7,480 | ) | (1,485 | ) | Financing costs | (318) | (235) | |||||||||||
Repurchase of common units and restricted stock units | (12,986 | ) | (6,874 | ) | Repurchase of common units and restricted stock units | (13,994) | (21,137) | |||||||||||
Proceeds from exercise of stock options | 12,051 | 2,173 | ||||||||||||||||
Contributions from noncontrolling interests in consolidated property partnerships | 250 | 191,676 | ||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (12,234 | ) | (1,139 | ) | Distributions to noncontrolling interests in consolidated property partnerships | (14,834) | (11,672) | |||||||||||
Distributions paid to common unitholders | (297,993 | ) | (101,542 | ) | Distributions paid to common unitholders | (61,161) | (58,594) | |||||||||||
Distributions paid to preferred unitholders (Note 8) | (7,409 | ) | (9,938 | ) | ||||||||||||||
Net cash (used in) provided by financing activities | (101,729 | ) | 65,617 | |||||||||||||||
Principal payments and repayments of secured debt | Principal payments and repayments of secured debt | (1,369) | (1,316) | |||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | (91,676) | (92,954) | |||||||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (5,899 | ) | 250,820 | Net (decrease) increase in cash and cash equivalents and restricted cash | (82,391) | 863,448 | ||||||||||||
Cash and cash equivalents and restricted cash, beginning of period | 250,129 | 57,204 | Cash and cash equivalents and restricted cash, beginning of period | 427,083 | 823,130 | |||||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 244,230 | $ | 308,024 | Cash and cash equivalents and restricted cash, end of period | $ | 344,692 | $ | 1,686,578 |
Number of Buildings | Rentable Square Feet | Number of Tenants | Percentage Occupied (1) | Percentage Leased | |||||||||||||||||||||||||
Stabilized Office Properties (2) | 118 | 15,221,912 | 415 | 91.3 | % | 93.1 | % |
Number of Buildings | Rentable Square Feet (unaudited) | Number of Tenants | Percentage Occupied (unaudited) | Percentage Leased (unaudited) | ||||||||||
Stabilized Office Properties | 101 | 13,720,598 | 515 | 94.0 | % | 96.2 | % |
Number of Buildings | Number of Units | Percentage Occupied (unaudited) | Percentage Leased (unaudited) | ||||||||
Stabilized Residential Property | 1 | 200 | 72.0 | % | 74.5 | % |
Number of Projects | Number of Units | 2022 Average Occupancy | |||||||||||||||
Stabilized Residential Properties | 3 | 1,001 | 93.7 | % |
Number of Properties/Projects | Estimated Rentable Square Feet (1) | |||
Development projects under construction (2) | 4 | 1,800,000 |
Number of Properties/Projects | Estimated Rentable Square Feet (1) | ||||||||||
In-process development projects - tenant improvement | 3 | 1,604,000 | |||||||||
In-process development projects - under construction | 2 | 946,000 | |||||||||
In-process redevelopment projects - under construction | 3 | 330,000 | |||||||||
Property | Date of Acquisition | Submarket | Purchase Price (in millions) (1) | |||||||||||||||||
10615 Burnet Road, Austin, TX | March 9, 2022 | Stadium District / Domain | $ | 40.0 | ||||||||||||||||
Location | Property Type | Month of Disposition | Number of Buildings | Rentable Square Feet | Sales Price (1) (in millions) | ||||||||
5717 Pacific Center Boulevard, San Diego, CA (2) | Office | January | 1 | 67,995 | $ | 12.1 | |||||||
Sorrento Mesa and Mission Valley Properties (3) | Office | September | 10 | 675,143 | 174.5 | ||||||||
Total Dispositions | 11 | 743,138 | $ | 186.6 | |||||||||
September 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Current receivables | $ | 20,746 | $ | 15,172 | |||
Allowance for uncollectible tenant receivables | (2,120 | ) | (1,712 | ) | |||
Current receivables, net | $ | 18,626 | $ | 13,460 |
September 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Deferred rent receivables | $ | 241,929 | $ | 220,501 | |||
Allowance for deferred rent receivables | (2,970 | ) | (1,524 | ) | |||
Deferred rent receivables, net | $ | 238,959 | $ | 218,977 |
September 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Furniture, fixtures and other long-lived assets, net | $ | 39,889 | $ | 40,395 | |||
Notes receivable (1) | 19,838 | 19,439 | |||||
Prepaid expenses & acquisition deposits | 48,988 | 10,774 | |||||
Total prepaid expenses and other assets, net | $ | 108,715 | $ | 70,608 |
September 30, 2017 | December 31, 2016 | March 31, 2022 | December 31, 2021 | |||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||
Outstanding borrowings | $ | 60,000 | $ | — | Outstanding borrowings | $ | — | $ | — | |||||||||
Remaining borrowing capacity | 690,000 | 600,000 | Remaining borrowing capacity | 1,100,000 | 1,100,000 | |||||||||||||
Total borrowing capacity (1) | $ | 750,000 | $ | 600,000 | Total borrowing capacity (1) | $ | 1,100,000 | $ | 1,100,000 | |||||||||
Interest rate (2) | 2.24 | % | 1.82 | % | Interest rate (2) | 1.35 | % | 1.00 | % | |||||||||
Facility fee-annual rate (3) | 0.200% | Facility fee-annual rate (3) | 0.200% | |||||||||||||||
Maturity date | July 2022 | July 2019 | Maturity date | July 2025 |
September 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Outstanding borrowings (1) | $ | — | $ | 150,000 | |||
Remaining borrowing capacity | 150,000 | — | |||||
Total borrowing capacity (2) | $ | 150,000 | $ | 150,000 | |||
Interest rate (3) | 2.33 | % | 1.85 | % | |||
Undrawn facility fee-annual rate (4) | 0.200 | % | — | % | |||
Maturity date | July 2022 | July 2019 |
Year | (in thousands) | ||||
Remaining 2022 | $ | 4,186 | |||
2023 | 5,775 | ||||
2024 | 431,006 | ||||
2025 | 406,246 | ||||
2026 | 401,317 | ||||
2027 | 249,125 | ||||
Thereafter | 2,600,000 | ||||
Total aggregate principal value (1) | $ | 4,097,655 |
Year | (in thousands) | ||
Remaining 2017 | $ | 1,545 | |
2018 | 451,669 | ||
2019 | 76,309 | ||
2020 | 255,137 | ||
2021 | 5,342 | ||
Thereafter | 1,659,023 | ||
Total (1) | $ | 2,449,025 |
KILROY REALTY CORPORATION AND KILROY REALTY, L.P. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued) |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Gross interest expense | $ | 39,723 | $ | 39,242 | |||||||||||||||||||
Capitalized interest and deferred financing costs | (19,098) | (16,908) | |||||||||||||||||||||
Interest expense | $ | 20,625 | $ | 22,334 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Gross interest expense | $ | 28,331 | $ | 26,184 | $ | 84,577 | $ | 79,027 | |||||||
Capitalized interest and deferred financing costs | (12,180 | ) | (11,208 | ) | (33,101 | ) | (37,838 | ) | |||||||
Interest expense | $ | 16,151 | $ | 14,976 | $ | 51,476 | $ | 41,189 |
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
Company owned common units in the Operating Partnership | 116,716,080 | 116,464,169 | 116,450,370 | ||||||||||||||
Company owned general partnership interest | 99.0 | % | 99.0 | % | 99.0 | % | |||||||||||
Noncontrolling common units of the Operating Partnership | 1,150,574 | 1,150,574 | 1,150,574 | ||||||||||||||
Ownership interest of noncontrolling interest | 1.0 | % | 1.0 | % | 1.0 | % |
September 30, 2017 | December 31, 2016 | September 30, 2016 | ||||||
Company owned common units in the Operating Partnership | 98,382,256 | 93,219,439 | 92,272,492 | |||||
Company owned general partnership interest | 97.9 | % | 97.5 | % | 97.2 | % | ||
Noncontrolling common units of the Operating Partnership | 2,077,193 | 2,381,543 | 2,631,276 | |||||
Ownership interest of noncontrolling interest | 2.1 | % | 2.5 | % | 2.8 | % |
Fair Value Assumptions | |||||
Valuation date | January 28, 2022 | ||||
Fair value on valuation date (in millions) | $12.7 | ||||
Fair value per share on valuation date (1) | $67.62 | ||||
Expected share price volatility | 36.0% | ||||
Risk-free interest rate | 1.35% |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Fixed lease payments | $ | 224,816 | $ | 204,216 | |||||||||||||||||||
Variable lease payments | 37,081 | 31,475 | |||||||||||||||||||||
Net collectability recoveries (reversals) (1) | 1,311 | (1,035) | |||||||||||||||||||||
Total rental income | $ | 263,208 | $ | 234,656 |
Year Ending | (in thousands) | ||||
Remaining 2022 | $ | 602,820 | |||
2023 | 814,598 | ||||
2024 | 779,984 | ||||
2025 | 741,031 | ||||
2026 | 687,467 | ||||
2027 | 626,861 | ||||
Thereafter | 2,291,039 | ||||
Total (1) | $ | 6,543,800 |
Fair Value (Level 1) (1) | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Description | (in thousands) | ||||||||||
Marketable securities (2) | $ | 25,829 | $ | 27,475 |
Fair Value (Level 1) (1) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Description | (in thousands) | ||||||
Marketable securities (2) | $ | 18,851 | $ | 14,773 |
(1) Based on quoted prices in active markets for identical securities. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Description | (in thousands) | (in thousands) | |||||||||||||
Net gain on marketable securities | $ | 536 | $ | 481 | $ | 1,719 | $ | 867 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Carrying Value | Fair Value (1) | Carrying Value | Fair Value (1) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Secured debt, net | $ | 247,030 | $ | 250,875 | $ | 248,367 | $ | 269,687 | |||||||||||||||
Unsecured debt, net | $ | 3,821,433 | $ | 3,748,850 | $ | 3,820,383 | $ | 4,105,408 | |||||||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value (1) | Carrying Value | Fair Value (1) | ||||||||||||
(in thousands) | |||||||||||||||
Liabilities | |||||||||||||||
Secured debt, net | $ | 465,828 | $ | 467,968 | $ | 472,772 | $ | 469,234 | |||||||
Unsecured debt, net | 1,909,381 | 1,983,737 | 1,847,351 | 1,900,487 | |||||||||||
Unsecured line of credit | 60,000 | 60,087 | — | — |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income available to common stockholders | $ | 53,128 | $ | 497,631 | |||||||||||||||||||
Allocation to participating securities (1) | (413) | (365) | |||||||||||||||||||||
Numerator for basic and diluted net income available to common stockholders | $ | 52,715 | $ | 497,266 | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic weighted average vested shares outstanding | 116,650,228 | 116,344,375 | |||||||||||||||||||||
Effect of dilutive securities | 409,866 | 457,009 | |||||||||||||||||||||
Diluted weighted average vested shares and common stock equivalents outstanding | 117,060,094 | 116,801,384 | |||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||
Net income available to common stockholders per share | $ | 0.45 | $ | 4.27 | |||||||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||
Net income available to common stockholders per share | $ | 0.45 | $ | 4.26 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||
Numerator: | |||||||||||||||
Net income attributable to Kilroy Realty Corporation | $ | 71,110 | $ | 53,895 | $ | 136,083 | $ | 261,050 | |||||||
Total preferred dividends | (4,552 | ) | (3,313 | ) | (13,363 | ) | (9,938 | ) | |||||||
Allocation to participating securities (1) | (501 | ) | (426 | ) | (1,460 | ) | (1,244 | ) | |||||||
Numerator for basic and diluted net income available to common stockholders | $ | 66,057 | $ | 50,156 | $ | 121,260 | $ | 249,868 | |||||||
Denominator: | |||||||||||||||
Basic weighted average vested shares outstanding | 98,352,139 | 92,227,016 | 98,008,780 | 92,220,522 | |||||||||||
Effect of dilutive securities | 559,473 | 693,390 | 582,268 | 611,016 | |||||||||||
Diluted weighted average vested shares and common share equivalents outstanding | 98,911,612 | 92,920,406 | 98,591,048 | 92,831,538 | |||||||||||
Basic earnings per share: | |||||||||||||||
Net income available to common stockholders per share | $ | 0.67 | $ | 0.54 | $ | 1.24 | $ | 2.71 | |||||||
Diluted earnings per share: | |||||||||||||||
Net income available to common stockholders per share | $ | 0.67 | $ | 0.54 | $ | 1.23 | $ | 2.69 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(in thousands, except unit and per unit amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income available to common unitholders | $ | 53,644 | $ | 502,517 | |||||||||||||||||||
Allocation to participating securities (1) | (413) | (365) | |||||||||||||||||||||
Numerator for basic and diluted net income available to common unitholders | $ | 53,231 | $ | 502,152 | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic weighted average vested units outstanding | 117,800,802 | 117,494,949 | |||||||||||||||||||||
Effect of dilutive securities | 409,866 | 457,009 | |||||||||||||||||||||
Diluted weighted average vested units and common unit equivalents outstanding | 118,210,668 | 117,951,958 | |||||||||||||||||||||
Basic earnings per unit: | |||||||||||||||||||||||
Net income available to common unitholders per unit | $ | 0.45 | $ | 4.27 | |||||||||||||||||||
Diluted earnings per unit: | |||||||||||||||||||||||
Net income available to common unitholders per unit | $ | 0.45 | $ | 4.26 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands, except unit and per unit amounts) | |||||||||||||||
Numerator: | |||||||||||||||
Net income attributable to Kilroy Realty, L.P. | $ | 72,402 | $ | 55,254 | $ | 138,427 | $ | 266,677 | |||||||
Total preferred distributions | (4,552 | ) | (3,313 | ) | (13,363 | ) | (9,938 | ) | |||||||
Allocation to participating securities (1) | (501 | ) | (426 | ) | (1,460 | ) | (1,244 | ) | |||||||
Numerator for basic and diluted net income available to common unitholders | $ | 67,349 | $ | 51,515 | $ | 123,604 | $ | 255,495 | |||||||
Denominator: | |||||||||||||||
Basic weighted average vested units outstanding | 100,429,332 | 94,858,292 | 100,160,595 | 94,630,183 | |||||||||||
Effect of dilutive securities | 559,473 | 693,390 | 582,268 | 611,016 | |||||||||||
Diluted weighted average vested units and common unit equivalents outstanding | 100,988,805 | 95,551,682 | 100,742,863 | 95,241,199 | |||||||||||
Basic earnings per unit: | |||||||||||||||
Net income available to common unitholders per unit | $ | 0.67 | $ | 0.54 | $ | 1.23 | $ | 2.70 | |||||||
Diluted earnings per unit: | |||||||||||||||
Net income available to common unitholders per unit | $ | 0.67 | $ | 0.54 | $ | 1.23 | $ | 2.68 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||||||
Cash paid for interest, net of capitalized interest of $18,029 and $16,131 as of March 31, 2022 and 2021, respectively | $ | 4,736 | $ | 12,387 | |||||||
Cash paid for amounts included in the measurement of ground lease liabilities | $ | 1,532 | $ | 1,455 | |||||||
NON-CASH INVESTING TRANSACTIONS: | |||||||||||
Accrual for expenditures for operating properties and development and redevelopment properties | $ | 47,101 | $ | 57,675 | |||||||
Tenant improvements funded directly by tenants | $ | 1,908 | $ | 2,570 | |||||||
NON-CASH FINANCING TRANSACTIONS: | |||||||||||
Accrual of dividends and distributions payable to common stockholders and common unitholders (Note 15) | $ | 61,951 | $ | 59,472 | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||
Cash paid for interest, net of capitalized interest of $31,880 and $36,468 as of September 30, 2017 and 2016, respectively | $ | 46,878 | $ | 42,858 | |||
NON-CASH INVESTING TRANSACTIONS: | |||||||
Accrual for expenditures for operating properties and development properties | $ | 104,409 | $ | 77,161 | |||
Tenant improvements funded directly by tenants | $ | 10,361 | $ | 16,803 | |||
Assumption of accrued liabilities in connection with acquisitions | $ | — | $ | 4,911 | |||
NON-CASH FINANCING TRANSACTIONS: | |||||||
Accrual of dividends and distributions payable to common stockholders and common unitholders | $ | 43,324 | $ | 36,109 | |||
Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders | $ | — | $ | 1,656 | |||
Exchange of common units of the Operating Partnership into shares of the Company’s common stock | $ | 10,939 | $ | 39 | |||
Issuance of common units of the Operating Partnership in connection with an acquisition | $ | — | $ | 48,033 | |||
Secured debt assumed by buyers in connection with land dispositions | $ | — | $ | 2,322 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||||||
Cash and cash equivalents at beginning of period | $ | 414,077 | $ | 731,991 | |||||||
Restricted cash at beginning of period | 13,006 | 91,139 | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 427,083 | $ | 823,130 | |||||||
Cash and cash equivalents at end of period | $ | 331,685 | $ | 657,819 | |||||||
Restricted cash at end of period | 13,007 | 1,028,759 | |||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 344,692 | $ | 1,686,578 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||
Cash and cash equivalents at beginning of period | $ | 193,418 | $ | 56,508 | |||
Restricted cash at beginning of period | 56,711 | 696 | |||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 250,129 | $ | 57,204 | |||
Cash and cash equivalents at end of period | $ | 64,954 | $ | 250,523 | |||
Restricted cash at end of period | 179,276 | 57,501 | |||||
Cash and cash equivalents and restricted cash at end of period | $ | 244,230 | $ | 308,024 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||||||
Cash paid for interest, net of capitalized interest of $18,029 and $16,131 as of March 31, 2022 and 2021, respectively | $ | 4,736 | $ | 12,387 | |||||||
Cash paid for amounts included in the measurement of ground lease liabilities | $ | 1,532 | $ | 1,455 | |||||||
NON-CASH INVESTING TRANSACTIONS: | |||||||||||
Accrual for expenditures for operating properties and development and redevelopment properties | $ | 47,101 | $ | 57,675 | |||||||
Tenant improvements funded directly by tenants | $ | 1,908 | $ | 2,570 | |||||||
NON-CASH FINANCING TRANSACTIONS: | |||||||||||
Accrual of distributions payable to common unitholders (Note 15) | $ | 61,951 | $ | 59,472 | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||
Cash paid for interest, net of capitalized interest of $31,880 and $36,468 as of September 30, 2017 and 2016, respectively | $ | 46,878 | $ | 42,858 | |||
NON-CASH INVESTING TRANSACTIONS: | |||||||
Accrual for expenditures for operating properties and development properties | $ | 104,409 | $ | 77,161 | |||
Tenant improvements funded directly by tenants | $ | 10,361 | $ | 16,803 | |||
Assumption of accrued liabilities in connection with acquisitions | $ | — | $ | 4,911 | |||
NON-CASH FINANCING TRANSACTIONS: | |||||||
Accrual of distributions payable to common unitholders | $ | 43,324 | $ | 36,109 | |||
Accrual of distributions payable to preferred unitholders | $ | — | $ | 1,656 | |||
Issuance of common units of the Operating Partnership in connection with an acquisition | $ | — | $ | 48,033 | |||
Secured debt assumed by buyers in connection with land dispositions | $ | — | $ | 2,322 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||||||
Cash and cash equivalents at beginning of period | $ | 414,077 | $ | 731,991 | |||||||
Restricted cash at beginning of period | 13,006 | 91,139 | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 427,083 | $ | 823,130 | |||||||
Cash and cash equivalents at end of period | $ | 331,685 | $ | 657,819 | |||||||
Restricted cash at end of period | 13,007 | 1,028,759 | |||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 344,692 | $ | 1,686,578 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||
Cash and cash equivalents at beginning of period | $ | 193,418 | $ | 56,508 | |||
Restricted cash at beginning of period | 56,711 | 696 | |||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 250,129 | $ | 57,204 | |||
Cash and cash equivalents at end of period | $ | 64,954 | $ | 250,523 | |||
Restricted cash at end of period | 179,276 | 57,501 | |||||
Cash and cash equivalents and restricted cash at end of period | $ | 244,230 | $ | 308,024 |
Near-Term Development Pipeline (1) | Location | Potential Start Date (2) | Approx. Developable Square Feet | Total Estimated Investment ($ in millions) | Total Costs as of 9/30/2017 (3) ($ in millions) | |||||||||
Academy Project | Hollywood | 2018 | 545,000 | $ | 425 | $ | 83.8 | |||||||
One Paseo - Phases II and III | Del Mar | TBD | 640,000 | 440 | 161.6 | |||||||||
Total Near-Term Development Pipeline | 1,185,000 | $ | 865 | $ | 245.4 |
Future Development Pipeline | Location | Approx. Developable Square Feet (1) | Total Costs as of 3/31/2022 ($ in millions) (2) | |||||||||||||||||
San Diego County | ||||||||||||||||||||
Santa Fe Summit – Phases 2 and 3 | 56 Corridor | 600,000 - 650,000 | $ | 97.9 | ||||||||||||||||
2045 Pacific Highway | Little Italy | 275,000 | 49.5 | |||||||||||||||||
Kilroy East Village | East Village | TBD | 63.0 | |||||||||||||||||
San Francisco Bay Area | ||||||||||||||||||||
Kilroy Oyster Point - Phases 3 and 4 | South San Francisco | 875,000 - 1,000,000 | 205.6 | |||||||||||||||||
Flower Mart | SOMA | 2,300,000 | 467.7 | |||||||||||||||||
Greater Seattle | ||||||||||||||||||||
SIX0 - Office & Residential | Denny Regrade | 925,000 | 157.5 | |||||||||||||||||
Austin | ||||||||||||||||||||
10615 Burnet Road (3) | Stadium District / Domain | 493,000 | 40.3 | |||||||||||||||||
TOTAL: | $ | 1,081.5 |
1st & 2nd Generation (1)(2) | 2nd Generation (1)(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Leases (3) | Rentable Square Feet (3) | Retention Rates (4) | TI/LC per Sq. Ft. (5) | TI/LC per Sq. Ft. / Year | Changes in Rents (6)(7) | Changes in Cash Rents (8) | Weighted Average Lease Term (in months) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
New | Renewal | New | Renewal | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | 13 | 7 | 141,137 | 76,104 | 24.0 | % | $ | 73.23 | $ | 10.59 | 25.4 | % | 5.9 | % | 83 | ||||||||||||||||||||||||||||||||||||||||||||
1st & 2nd Generation (2) | 2nd Generation (2) | ||||||||||||||||||||||||||
Number of Leases (3) | Rentable Square Feet (3) | TI/LC per Sq. Ft. (4) | Changes in Rents (5)(6) | Changes in Cash Rents (7) | Retention Rates (8) | Weighted Average Lease Term (in months) | |||||||||||||||||||||
New | Renewal | New | Renewal | ||||||||||||||||||||||||
Three Months Ended September 30, 2017 | 20 | 11 | 221,614 | 56,566 | $ | 58.76 | 51.5 | % | 31.5 | % | 19.7 | % | 80 | ||||||||||||||
Nine Months Ended September 30, 2017 | 57 | 47 | 521,079 | 685,522 | $ | 47.08 | 33.0 | % | 17.7 | % | 48.2 | % | 73 |
1st & 2nd Generation (2) | 2nd Generation (2) | |||||||||||||||||||||||
Number of Leases (3) | Rentable Square Feet (3) | TI/LC per Sq. Ft. (4) | Changes in Rents (5)(6) | Changes in Cash Rents (7) | Weighted Average Lease Term (in months) | |||||||||||||||||||
New | Renewal | New | Renewal | |||||||||||||||||||||
Three Months Ended September 30, 2017 (9)(10) | 22 | 11 | 152,547 | 56,566 | $ | 44.66 | 9.5 | % | 0.8 | % | 65 | |||||||||||||
Nine Months Ended September 30, 2017 (10) | 70 | 47 | 656,590 | 685,522 | $ | 48.89 | 27.9 | % | 12.8 | % | 70 |
1st & 2nd Generation (1)(2) | 2nd Generation (1)(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Leases (3) | Rentable Square Feet (3) | TI/LC per Sq. Ft. (5) | TI/LC per Sq. Ft. / Year | Changes in Rents (6)(7) | Changes in Cash Rents (8) | Weighted Average Lease Term (in months) | |||||||||||||||||||||||||||||||||||||||||||||||
New | Renewal | New | Renewal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | 9 | 7 | 107,147 | 76,104 | $ | 92.61 | $ | 11.70 | 32.9 | % | 6.7 | % | 95 | ||||||||||||||||||||||||||||||||||||||||
Year of Lease Expiration | Number of Expiring Leases | Total Square Feet | % of Total Leased Sq. Ft. | Annualized Base Rent (2)(3) | % of Total Annualized Base Rent (2) | Annualized Base Rent per Sq. Ft. (2) | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
Remainder of 2022 (4) | 39 | 431,965 | 3.2 | % | $ | 19,360 | 2.5 | % | $ | 44.82 | ||||||||||||||||||||||||||||
2023 (4) | 80 | 1,488,671 | 11.0 | % | 76,087 | 10.1 | % | 51.11 | ||||||||||||||||||||||||||||||
2024 | 69 | 1,041,537 | 7.6 | % | 47,913 | 6.3 | % | 46.00 | ||||||||||||||||||||||||||||||
2025 | 59 | 729,691 | 5.3 | % | 36,298 | 4.8 | % | 49.74 | ||||||||||||||||||||||||||||||
2026 | 50 | 1,832,065 | 13.4 | % | 84,032 | 11.1 | % | 45.87 | ||||||||||||||||||||||||||||||
2027 | 56 | 1,213,082 | 8.9 | % | 48,079 | 6.4 | % | 39.63 | ||||||||||||||||||||||||||||||
Total | 353 | 6,737,011 | 49.4 | % | $ | 311,769 | 41.2 | % | $ | 46.28 |
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) | ||||||||||||||
(in thousands) | ||||||||||||||||||||
Remainder of 2017 | 30 | 360,619 | 2.8 | % | $ | 12,956 | 2.3 | % | $ | 35.93 | ||||||||||
2018 | 80 | 1,235,826 | 9.7 | % | 51,982 | 9.3 | % | 42.06 | ||||||||||||
2019 | 99 | 1,547,021 | 12.2 | % | 56,605 | 10.1 | % | 36.59 | ||||||||||||
2020 | 107 | 1,739,675 | 13.7 | % | 68,376 | 12.3 | % | 39.30 | ||||||||||||
2021 | 86 | 994,240 | 7.8 | % | 44,151 | 7.9 | % | 44.41 | ||||||||||||
2022 | 56 | 572,999 | 4.5 | % | 23,523 | 4.2 | % | 41.05 | ||||||||||||
Total | 458 | 6,450,380 | 50.7 | % | $ | 257,593 | 46.1 | % | $ | 39.93 |
Year | Region | # of Expiring Leases | Total Square Feet | % of Total Leased Sq. Ft. | Annualized Base Rent (2)(3) | % of Total Annualized Base Rent (2) | Annualized Rent per Sq. Ft. (2) | |||||||||||||||||||||||||||||||||||||
2022 (4) | Greater Los Angeles | 30 | 321,898 | 2.5 | % | $ | 14,806 | 2.0 | % | $ | 46.00 | |||||||||||||||||||||||||||||||||
San Diego County | 5 | 19,241 | 0.1 | % | 988 | 0.1 | % | 51.35 | ||||||||||||||||||||||||||||||||||||
San Francisco Bay Area | 2 | 30,829 | 0.2 | % | 1,785 | 0.2 | % | 57.90 | ||||||||||||||||||||||||||||||||||||
Greater Seattle | 2 | 59,997 | 0.4 | % | 1,781 | 0.2 | % | 29.68 | ||||||||||||||||||||||||||||||||||||
Total | 39 | 431,965 | 3.2 | % | $ | 19,360 | 2.5 | % | $ | 44.82 | ||||||||||||||||||||||||||||||||||
2023 (4) | Greater Los Angeles | 46 | 443,991 | 3.2 | % | $ | 23,454 | 3.1 | % | $ | 52.83 | |||||||||||||||||||||||||||||||||
San Diego County | 10 | 181,367 | 1.4 | % | 7,923 | 1.0 | % | 43.68 | ||||||||||||||||||||||||||||||||||||
San Francisco Bay Area | 16 | 389,560 | 2.9 | % | 24,515 | 3.2 | % | 62.93 | ||||||||||||||||||||||||||||||||||||
Greater Seattle | 8 | 473,753 | 3.5 | % | 20,195 | 2.8 | % | 42.63 | ||||||||||||||||||||||||||||||||||||
Total | 80 | 1,488,671 | 11.0 | % | $ | 76,087 | 10.1 | % | $ | 51.11 | ||||||||||||||||||||||||||||||||||
Number of Properties/Projects | Estimated Rentable Square Feet (1) | |||
Development projects under construction (2) | 4 | 1,800,000 |
Number of Properties/Projects | Estimated Rentable Square Feet (1) | ||||||||||
In-process development projects - tenant improvement | 3 | 1,604,000 | |||||||||
In-process development projects - under construction | 2 | 946,000 | |||||||||
In-process redevelopment projects - under construction | 3 | 330,000 | |||||||||
Number of Buildings | Rentable Square Feet | |||||||||||||||
Number of Buildings | Rentable Square Feet | |||||||||||||||
Total as of September 30, 2016 | 101 | 13,605,597 | ||||||||||||||
Total as of March 31, 2021 | Total as of March 31, 2021 | 117 | 14,049,585 | |||||||||||||
Acquisitions | 6 | 344,284 | Acquisitions | 1 | 539,226 | |||||||||||
Completed development properties placed in-service | 4 | 438,391 | Completed development properties placed in-service | 5 | 949,065 | |||||||||||
Properties transferred to redevelopment | Properties transferred to redevelopment | (3) | (348,568) | |||||||||||||
Dispositions | (10 | ) | (675,143 | ) | Dispositions | (2) | (102,376) | |||||||||
Remeasurement | — | 7,469 | Remeasurement | — | 134,980 | |||||||||||
Total as of September 30, 2017 (1) | 101 | 13,720,598 | ||||||||||||||
Total as of March 31, 2022 (1) | Total as of March 31, 2022 (1) | 118 | 15,221,912 |
Region | Number of Buildings | Rentable Square Feet | Occupancy at (1) | |||||||||||||||||||||||||||||
3/31/2022 | 12/31/2021 | 9/30/2021 | ||||||||||||||||||||||||||||||
Greater Los Angeles | 55 | 4,457,320 | 85.7 | % | 86.1 | % | 86.4 | % | ||||||||||||||||||||||||
San Diego County | 20 | 2,171,305 | 89.4 | % | 95.9 | % | 91.8 | % | ||||||||||||||||||||||||
San Francisco Bay Area | 34 | 6,211,875 | 92.9 | % | 92.4 | % | 93.0 | % | ||||||||||||||||||||||||
Greater Seattle | 9 | 2,381,412 | 99.2 | % | 97.2 | % | 97.2 | % | ||||||||||||||||||||||||
Total Stabilized Office Portfolio | 118 | 15,221,912 | 91.3 | % | 91.9 | % | 91.5 | % |
Region | Number of Buildings | Rentable Square Feet | Occupancy at (1) | ||||||||||||
9/30/2017 | 6/30/2017 | 12/31/2016 | |||||||||||||
Los Angeles and Ventura Counties | 36 | 4,181,735 | 91.0 | % | 91.2 | % | 95.0 | % | |||||||
Orange County | 1 | 271,556 | 94.4 | % | 94.7 | % | 97.8 | % | |||||||
San Diego | 21 | 2,043,645 | 93.9 | % | 93.5 | % | 93.2 | % | |||||||
San Francisco Bay Area | 31 | 5,157,524 | 95.9 | % | 95.1 | % | 97.6 | % | |||||||
Greater Seattle | 12 | 2,066,138 | 95.2 | % | 97.0 | % | 97.2 | % | |||||||
Total Stabilized Portfolio | 101 | 13,720,598 | 94.0 | % | 93.9 | % | 96.0 | % |
- | Average Occupancy | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Stabilized Portfolio(1) | 93.9 | % | 96.1 | % | 94.1 | % | 95.3 | % | |||
Same Store Portfolio(2) | 94.3 | % | 96.7 | % | 94.9 | % | 96.4 | % |
Average Occupancy | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Stabilized Office Portfolio (1) | 91.4 | % | 91.5 | % | |||||||||||||||||||
Same Store Portfolio (2) | 90.5 | % | 91.4 | % | |||||||||||||||||||
Residential Portfolio (3) | 93.7 | % | 69.1 | % |
(1)Occupancy percentages reported are based on our |
Tenant Name | Annualized Base Rental Revenue (1) ($ in thousands) | Rentable Square Feet | Percentage of Total Annualized Base Rental Revenue | Percentage of Total Rentable Square Feet | ||||||||||
LinkedIn Corporation | $ | 28,344 | 663,239 | 5.1 | % | 4.8 | % | |||||||
salesforce.com, inc. | 23,836 | 456,867 | 4.3 | % | 3.3 | % | ||||||||
DIRECTV, LLC | 23,152 | 684,411 | 4.2 | % | 5.0 | % | ||||||||
Box, Inc. | 22,441 | 371,792 | 4.0 | % | 2.7 | % | ||||||||
Dropbox, Inc. | 21,572 | 256,484 | 3.9 | % | 1.9 | % | ||||||||
Synopsys, Inc. | 15,492 | 340,913 | 2.8 | % | 2.5 | % | ||||||||
Bridgepoint Education, Inc. | 14,064 | 296,708 | 2.5 | % | 2.2 | % | ||||||||
Viacom International, Inc. | 13,718 | 211,343 | 2.5 | % | 1.5 | % | ||||||||
Delta Dental of California | 10,313 | 188,143 | 1.9 | % | 1.4 | % | ||||||||
Capital One, N.A. | 9,170 | 117,993 | 1.6 | % | 0.9 | % | ||||||||
AMN Healthcare, Inc. | 9,001 | 176,075 | 1.6 | % | 1.3 | % | ||||||||
Concur Technologies | 8,852 | 243,429 | 1.6 | % | 1.8 | % | ||||||||
Biotech/Healthcare Industry Tenant | 8,461 | 128,688 | 1.5 | % | 0.9 | % | ||||||||
Riot Games, Inc. | 7,355 | 131,537 | 1.3 | % | 1.0 | % | ||||||||
Neurocrine Biosciences, Inc. | 6,883 | 140,591 | 1.2 | % | 1.0 | % | ||||||||
Total Top Fifteen Tenants | $ | 222,654 | 4,408,213 | 40.0 | % | 32.2 | % |
Tenant Name | Region | Annualized Base Rental Revenue (1) (2) | Rentable Square Feet | Percentage of Total Annualized Base Rental Revenue | Percentage of Total Rentable Square Feet | Year(s) of Lease Expiration | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
GM Cruise, LLC | San Francisco Bay Area | $ | 36,337 | 374,618 | 4.7 | % | 2.4 | % | 2031 | |||||||||||||||||||||||||||||
Amazon.com | Greater Seattle | 33,800 | 780,757 | 4.4 | % | 5.0 | % | 2023 / 2029 / 2030 | ||||||||||||||||||||||||||||||
Stripe, Inc. | San Francisco Bay Area | 33,110 | 425,687 | 4.3 | % | 2.7 | % | 2034 | ||||||||||||||||||||||||||||||
LinkedIn Corporation / Microsoft Corporation | San Francisco Bay Area | 29,752 | 663,460 | 3.9 | % | 4.3 | % | 2024 / 2026 | ||||||||||||||||||||||||||||||
Adobe Systems, Inc. | San Francisco Bay Area / Greater Seattle | 27,897 | 523,416 | 3.6 | % | 3.4 | % | 2027 / 2031 | ||||||||||||||||||||||||||||||
salesforce.com, inc. | San Francisco Bay Area | 24,076 | 451,763 | 3.1 | % | 2.9 | % | 2031 / 2032 | ||||||||||||||||||||||||||||||
DoorDash, Inc. | San Francisco Bay Area | 23,842 | 236,759 | 3.1 | % | 1.5 | % | 2032 | ||||||||||||||||||||||||||||||
DIRECTV, LLC (3) | Greater Los Angeles | 23,152 | 684,411 | 3.0 | % | 4.4 | % | 2027 | ||||||||||||||||||||||||||||||
Global Technology Company | Greater Seattle / San Diego County | 23,059 | 472,427 | 3.0 | % | 3.0 | % | 2032 / 2033 | ||||||||||||||||||||||||||||||
Okta, Inc. | San Francisco Bay Area | 22,387 | 273,371 | 2.9 | % | 1.8 | % | 2028 | ||||||||||||||||||||||||||||||
Netflix, Inc. (4) | Greater Los Angeles | 21,943 | 362,899 | 2.8 | % | 2.3 | % | 2022 / 2032 | ||||||||||||||||||||||||||||||
Box, Inc. | San Francisco Bay Area | 20,390 | 341,441 | 2.6 | % | 2.2 | % | 2028 | ||||||||||||||||||||||||||||||
Cytokinetics, Inc. | San Francisco Bay Area | 18,014 | 234,892 | 2.3 | % | 1.5 | % | 2033 | ||||||||||||||||||||||||||||||
Riot Games, Inc. | Greater Los Angeles | 15,681 | 251,307 | 2.0 | % | 1.6 | % | 2023 / 2024 | ||||||||||||||||||||||||||||||
Synopsys, Inc. | San Francisco Bay Area | 15,492 | 342,891 | 2.0 | % | 2.2 | % | 2030 | ||||||||||||||||||||||||||||||
Total | $ | 368,932 | 6,420,099 | 47.7 | % | 41.2 | % |
Group | # of Buildings | Rentable Square Feet | ||||||||||||
Same Store Properties | 112 | 13,733,621 | ||||||||||||
Stabilized Development Properties (1) | 5 | 949,065 | ||||||||||||
Acquisition Properties | 1 | 539,226 | ||||||||||||
Total Stabilized Portfolio | 118 | 15,221,912 |
Group | # of Buildings | Rentable Square Feet | ||||
Same Store Properties | 88 | 12,182,806 | ||||
Stabilized Development Properties | 6 | 1,079,333 | ||||
Acquisition Properties | 7 | 458,459 | ||||
Total Stabilized Office Portfolio | 101 | 13,720,598 |
Three Months Ended March 31, | Dollar Change | Percentage Change | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined: | |||||||||||||||||||||||
Net Income Available to Common Stockholders | $ | 53,128 | $ | 497,631 | $ | (444,503) | (89.3) | % | |||||||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 516 | 4,886 | (4,370) | (89.4) | % | ||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 5,739 | 4,894 | 845 | 17.3 | % | ||||||||||||||||||
Net income | $ | 59,383 | $ | 507,411 | $ | (448,028) | (88.3) | % | |||||||||||||||
Unallocated expense (income): | |||||||||||||||||||||||
General and administrative expenses | 22,781 | 21,985 | 796 | 3.6 | % | ||||||||||||||||||
Leasing costs | 1,013 | 692 | 321 | 46.4 | % | ||||||||||||||||||
Depreciation and amortization | 88,660 | 75,932 | 12,728 | 16.8 | % | ||||||||||||||||||
Interest and other income, net | (81) | (1,373) | 1,292 | (94.1) | % | ||||||||||||||||||
Interest expense | 20,625 | 22,334 | (1,709) | (7.7) | % | ||||||||||||||||||
Gain on sale of depreciable operating property | — | (457,288) | 457,288 | (100.0) | % | ||||||||||||||||||
Net Operating Income, as defined | $ | 192,381 | $ | 169,693 | $ | 22,688 | 13.4 | % |
Three Months Ended September 30, | Dollar Change | Percentage Change | ||||||||||||
2017 | 2016 | |||||||||||||
($ in thousands) | ||||||||||||||
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined: | ||||||||||||||
Net Income Available to Common Stockholders | $ | 66,558 | $ | 50,582 | $ | 15,976 | 31.6 | % | ||||||
Preferred dividends | 808 | 3,313 | (2,505 | ) | (75.6 | )% | ||||||||
Original issuance costs of redeemed preferred stock and preferred units | 3,744 | — | 3,744 | 100.0 | % | |||||||||
Net income attributable to Kilroy Realty Corporation | $ | 71,110 | $ | 53,895 | $ | 17,215 | 31.9 | % | ||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 1,394 | 1,453 | (59 | ) | (4.1 | )% | ||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 2,984 | 1,027 | 1,957 | 190.6 | % | |||||||||
Net income | $ | 75,488 | $ | 56,375 | $ | 19,113 | 33.9 | % | ||||||
Unallocated expense (income): | ||||||||||||||
General and administrative expenses | 14,514 | 13,533 | 981 | 7.2 | % | |||||||||
Acquisition-related expenses | — | 188 | (188 | ) | (100.0 | )% | ||||||||
Depreciation and amortization | 62,567 | 56,666 | 5,901 | 10.4 | % | |||||||||
Interest income and other net investment gains | (1,526 | ) | (538 | ) | (988 | ) | 183.6 | % | ||||||
Interest expense | 16,151 | 14,976 | 1,175 | 7.8 | % | |||||||||
Net gain on sale of land | (449 | ) | — | (449 | ) | 100.0 | % | |||||||
Gains on sales of depreciable operating properties | (37,250 | ) | (18,312 | ) | (18,938 | ) | 103.4 | % | ||||||
Net Operating Income, as defined | $ | 129,495 | $ | 122,888 | $ | 6,607 | 5.4 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | Develop-ment | Acquisi-tion | Disposition | Total | Same Store | Develop-ment | Acquisi-tion | Disposition | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental income | $ | 218,089 | $ | 36,427 | $ | 8,685 | $ | 7 | $ | 263,208 | $ | 201,097 | $ | 12,687 | $ | — | $ | 20,872 | $ | 234,656 | |||||||||||||||||||||||||||||||||||||||
Other property income | 1,788 | 478 | 21 | 6 | 2,293 | 965 | 13 | — | 12 | 990 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 219,877 | 36,905 | 8,706 | 13 | 265,501 | 202,062 | 12,700 | — | 20,884 | 235,646 | |||||||||||||||||||||||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property expenses | 39,442 | 4,963 | 979 | 40 | 45,424 | 35,048 | 1,526 | — | 2,285 | 38,859 | |||||||||||||||||||||||||||||||||||||||||||||||||
Real estate taxes | 21,506 | 3,705 | 659 | — | 25,870 | 21,053 | 1,383 | — | 2,830 | 25,266 | |||||||||||||||||||||||||||||||||||||||||||||||||
Ground leases | 1,738 | 88 | — | — | 1,826 | 1,828 | — | — | — | 1,828 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 62,686 | 8,756 | 1,638 | 40 | 73,120 | 57,929 | 2,909 | — | 5,115 | 65,953 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 157,191 | $ | 28,149 | $ | 7,068 | $ | (27) | $ | 192,381 | $ | 144,133 | $ | 9,791 | $ | — | $ | 15,769 | $ | 169,693 |
Three Months Ended September 30, | Three Months Ended March 31, 2022 as compared to the Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Same Store | Development | Acquisition | Disposition | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | Stabilized Develop-ment | Acquisi-tion Properties | Disposi-tions & Other | Total | Same Store | Stabilized Develop-ment | Acquisi-tion Properties | Disposi-tions & Other | Total | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues: | Operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental income | $ | 130,147 | $ | 18,550 | $ | 7,317 | $ | 3,940 | $ | 159,954 | $ | 129,684 | $ | 11,347 | $ | 1,339 | $ | 4,169 | $ | 146,539 | Rental income | $ | 16,992 | 8.4 | % | $ | 23,740 | 187.1 | % | $ | 8,685 | 100.0 | % | $ | (20,865) | (100.0) | % | $ | 28,552 | 12.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tenant reimbursements | 14,550 | 2,841 | 1,821 | 453 | 19,665 | 13,670 | 1,999 | 263 | 474 | 16,406 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other property income | 1,396 | 91 | 206 | 222 | 1,915 | 287 | 19 | — | 5,097 | 5,403 | Other property income | 823 | 85.3 | % | 465 | NM* | 21 | 100.0 | % | (6) | (50.0) | % | 1,303 | 131.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 146,093 | 21,482 | 9,344 | 4,615 | 181,534 | 143,641 | 13,365 | 1,602 | 9,740 | 168,348 | Total | 17,815 | 8.8 | % | 24,205 | 190.6 | % | 8,706 | 100.0 | % | (20,871) | (99.9) | % | 29,855 | 12.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and related expenses: | Property and related expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property expenses | 26,554 | 4,468 | 1,232 | 816 | 33,070 | 25,165 | 3,885 | 106 | 894 | 30,050 | Property expenses | 4,394 | 12.5 | % | 3,437 | 225.2 | % | 979 | 100.0 | % | (2,245) | (98.2) | % | 6,565 | 16.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate taxes | 9,949 | 4,337 | 1,429 | 656 | 16,371 | 12,091 | 1,534 | 163 | 713 | 14,501 | Real estate taxes | 453 | 2.2 | % | 2,322 | 167.9 | % | 659 | 100.0 | % | (2,830) | (100.0) | % | 604 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for bad debts | 643 | 15 | 362 | 16 | 1,036 | 23 | — | — | (23 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ground leases | 964 | — | 598 | — | 1,562 | 909 | — | — | — | 909 | Ground leases | (90) | (4.9) | % | 88 | 100.0 | % | — | — | % | — | — | % | (2) | (0.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 38,110 | 8,820 | 3,621 | 1,488 | 52,039 | 38,188 | 5,419 | 269 | 1,584 | 45,460 | Total | 4,757 | 8.2 | % | 5,847 | 201.0 | % | 1,638 | 100.0 | % | (5,075) | (99.2) | % | 7,167 | 10.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 107,983 | $ | 12,662 | $ | 5,723 | $ | 3,127 | $ | 129,495 | $ | 105,453 | $ | 7,946 | $ | 1,333 | $ | 8,156 | $ | 122,888 | Net Operating Income, as defined | $ | 13,058 | 9.1 | % | $ | 18,358 | 187.5 | % | $ | 7,068 | 100.0 | % | $ | (15,796) | (100.2) | % | $ | 22,688 | 13.4 | % |
Three Months Ended September 30, 2017 as compared to the Three Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||||||
Same Store | Stabilized Development | Acquisition Properties | 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 | $ | 463 | 0.4 | % | $ | 7,203 | 63.5 | % | $ | 5,978 | 446.5 | % | $ | (229 | ) | (5.5 | )% | $ | 13,415 | 9.2 | % | |||||||||||||
Tenant reimbursements | 880 | 6.4 | % | 842 | 42.1 | % | 1,558 | 592.4 | % | (21 | ) | (4.4 | )% | 3,259 | 19.9 | % | ||||||||||||||||||
Other property income | 1,109 | 386.4 | % | 72 | 378.9 | % | 206 | 100.0 | % | (4,875 | ) | (95.6 | )% | (3,488 | ) | (64.6 | )% | |||||||||||||||||
Total | 2,452 | 1.7 | % | 8,117 | 60.7 | % | 7,742 | 483.3 | % | (5,125 | ) | (52.6 | )% | 13,186 | 7.8 | % | ||||||||||||||||||
Property and related expenses: | ||||||||||||||||||||||||||||||||||
Property expenses | 1,389 | 5.5 | % | 583 | 15.0 | % | 1,126 | NM* | (78 | ) | (8.7 | )% | 3,020 | 10.0 | % | |||||||||||||||||||
Real estate taxes | (2,142 | ) | (17.7 | )% | 2,803 | 182.7 | % | 1,266 | 776.7 | % | (57 | ) | (8.0 | )% | 1,870 | 12.9 | % | |||||||||||||||||
Provision for bad debts | 620 | NM* | 15 | 100.0 | % | 362 | 100.0 | % | 39 | 169.6 | % | 1,036 | 100.0 | % | ||||||||||||||||||||
Ground leases | 55 | 6.1 | % | — | — | % | 598 | 100.0 | % | — | — | % | 653 | 71.8 | % | |||||||||||||||||||
Total | (78 | ) | (0.2 | )% | 3,401 | 62.8 | % | 3,352 | NM* | (96 | ) | (6.1 | )% | 6,579 | 14.5 | % | ||||||||||||||||||
Net Operating Income, as defined | $ | 2,530 | 2.4 | % | $ | 4,716 | 59.4 | % | $ | 4,390 | 329.3 | % | $ | (5,029 | ) | (61.7 | )% | $ | 6,607 | 5.4 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | Dollar Change | Percentage Change | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Gross interest expense | $ | 39,723 | $ | 39,242 | $ | 481 | 1.2 | % | |||||||||||||||
Capitalized interest and deferred financing costs | (19,098) | (16,908) | (2,190) | 13.0 | % | ||||||||||||||||||
Interest expense | $ | 20,625 | $ | 22,334 | $ | (1,709) | (7.7) | % |
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | Dollar Change | Percentage Change | |||||||||||
(in thousands) | ||||||||||||||
Gross interest expense | $ | 28,331 | $ | 26,184 | $ | 2,147 | 8.2 | % | ||||||
Capitalized interest and deferred financing costs | (12,180 | ) | (11,208 | ) | (972 | ) | 8.7 | % | ||||||
Interest expense | $ | 16,151 | $ | 14,976 | $ | 1,175 | 7.8 | % |
Nine Months Ended September 30, | Dollar Change | Percentage Change | ||||||||||||
2017 | 2016 | |||||||||||||
($ in thousands) | ||||||||||||||
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined: | ||||||||||||||
Net Income Available to Common Stockholders | $ | 122,720 | $ | 251,112 | $ | (128,392 | ) | (51.1 | )% | |||||
Preferred dividends | 5,774 | 9,938 | (4,164 | ) | (41.9 | )% | ||||||||
Original issuance costs of redeemed preferred stock and preferred units | 7,589 | — | 7,589 | 100.0 | % | |||||||||
Net income attributable to Kilroy Realty Corporation | $ | 136,083 | $ | 261,050 | $ | (124,967 | ) | (47.9 | )% | |||||
Net income attributable to noncontrolling common units of the Operating Partnership | 2,633 | 5,892 | (3,259 | ) | (55.3 | )% | ||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 9,359 | 1,438 | 7,921 | 550.8 | % | |||||||||
Net income | $ | 148,075 | $ | 268,380 | $ | (120,305 | ) | (44.8 | )% | |||||
Unallocated expense (income): | ||||||||||||||
General and administrative expenses | 43,750 | 40,949 | 2,801 | 6.8 | % | |||||||||
Acquisition-related expenses | — | 964 | (964 | ) | (100.0 | )% | ||||||||
Depreciation and amortization | 185,737 | 160,452 | 25,285 | 15.8 | % | |||||||||
Interest income and other net investment gains | (3,629 | ) | (1,120 | ) | (2,509 | ) | 224.0 | % | ||||||
Interest expense | 51,476 | 41,189 | 10,287 | 25.0 | % | |||||||||
Net (gain) loss on sale of land | (449 | ) | 295 | (744 | ) | (252.2 | )% | |||||||
Gains on sales of depreciable operating properties | (39,507 | ) | (164,302 | ) | 124,795 | (76.0 | )% | |||||||
Net Operating Income, as defined | $ | 385,453 | $ | 346,807 | $ | 38,646 | 11.1 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||||||||||||||||||
Same Store | Stabilized Develop-ment | Acquisition Properties | Dispositi-ons & Other | Total | Same Store | Stabilized Develop-ment | Acquisition Properties | Dispositi-ons & Other | Total | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||
Rental income | $ | 388,721 | $ | 53,106 | $ | 21,884 | $ | 11,816 | $ | 475,527 | $ | 385,870 | $ | 22,610 | $ | 1,710 | $ | 13,757 | $ | 423,947 | |||||||||||||||||||
Tenant reimbursements | 43,592 | 7,356 | 5,846 | 1,434 | 58,228 | 37,823 | 4,028 | 317 | 1,780 | 43,948 | |||||||||||||||||||||||||||||
Other property income | 5,546 | 241 | 612 | 1,286 | 7,685 | 850 | 26 | — | 5,156 | 6,032 | |||||||||||||||||||||||||||||
Total | 437,859 | 60,703 | 28,342 | 14,536 | 541,440 | 424,543 | 26,664 | 2,027 | 20,693 | 473,927 | |||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||
Property expenses | 78,649 | 12,659 | 3,666 | 2,641 | 97,615 | 74,193 | 7,094 | 116 | 3,833 | 85,236 | |||||||||||||||||||||||||||||
Real estate taxes | 34,946 | 9,198 | 4,901 | 1,833 | 50,878 | 33,624 | 3,282 | 181 | 2,291 | 39,378 | |||||||||||||||||||||||||||||
Provision for bad debts | 1,672 | (101 | ) | 1,080 | 92 | 2,743 | 39 | — | — | (39 | ) | — | |||||||||||||||||||||||||||
Ground leases | 2,956 | — | 1,795 | — | 4,751 | 2,506 | — | — | — | 2,506 | |||||||||||||||||||||||||||||
Total | 118,223 | 21,756 | 11,442 | 4,566 | 155,987 | 110,362 | 10,376 | 297 | 6,085 | 127,120 | |||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 319,636 | $ | 38,947 | $ | 16,900 | $ | 9,970 | $ | 385,453 | $ | 314,181 | $ | 16,288 | $ | 1,730 | $ | 14,608 | $ | 346,807 |
Nine Months Ended September 30, 2017 as compared to the Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||||||
Same Store | Stabilized Development | Acquisition Properties | 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 | $ | 2,851 | 0.7 | % | $ | 30,496 | 134.9 | % | $ | 20,174 | NM* | $ | (1,941 | ) | (14.1 | )% | $ | 51,580 | 12.2 | % | ||||||||||||||
Tenant reimbursements | 5,769 | 15.3 | % | 3,328 | 82.6 | % | 5,529 | NM* | (346 | ) | (19.4 | )% | 14,280 | 32.5 | % | |||||||||||||||||||
Other property income | 4,696 | 552.5 | % | 215 | 826.9 | % | 612 | 100.0 | % | (3,870 | ) | (75.1 | )% | 1,653 | 27.4 | % | ||||||||||||||||||
Total | 13,316 | 3.1 | % | 34,039 | 127.7 | % | 26,315 | NM* | (6,157 | ) | (29.8 | )% | 67,513 | 14.2 | % | |||||||||||||||||||
Property and related expenses: | ||||||||||||||||||||||||||||||||||
Property expenses | 4,456 | 6.0 | % | 5,565 | 78.4 | % | 3,550 | NM* | (1,192 | ) | (31.1 | )% | 12,379 | 14.5 | % | |||||||||||||||||||
Real estate taxes | 1,322 | 3.9 | % | 5,916 | 180.3 | % | 4,720 | NM* | (458 | ) | (20.0 | )% | 11,500 | 29.2 | % | |||||||||||||||||||
Provision for bad debts | 1,633 | NM* | (101 | ) | (100.0 | )% | 1,080 | 100.0 | % | 131 | 335.9 | % | 2,743 | 100.0 | % | |||||||||||||||||||
Ground leases | 450 | 18.0 | % | — | — | % | 1,795 | 100.0 | % | — | — | % | 2,245 | 89.6 | % | |||||||||||||||||||
Total | 7,861 | 7.1 | % | 11,380 | 109.7 | % | 11,145 | NM* | (1,519 | ) | (25.0 | )% | 28,867 | 22.7 | % | |||||||||||||||||||
Net Operating Income, as defined | $ | 5,455 | 1.7 | % | $ | 22,659 | 139.1 | % | $ | 15,170 | 876.9 | % | $ | (4,638 | ) | (31.7 | )% | $ | 38,646 | 11.1 | % |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Dollar Change | Percentage Change | |||||||||||
(in thousands) | ||||||||||||||
Gross interest expense | $ | 84,577 | $ | 79,027 | $ | 5,550 | 7.0 | % | ||||||
Capitalized interest and deferred financing costs | (33,101 | ) | (37,838 | ) | 4,737 | (12.5 | )% | |||||||
Interest expense | $ | 51,476 | $ | 41,189 | $ | 10,287 | 25.0 | % |
Shares/Units at March 31, 2022 | Aggregate Principal Amount or $ Value Equivalent | % of Total Market Capitalization | |||||||||||||||
($ in thousands) | |||||||||||||||||
Debt: (1)(2) | |||||||||||||||||
Unsecured Senior Notes due 2024 | $ | 425,000 | 3.2 | % | |||||||||||||
Unsecured Senior Notes due 2025 | 400,000 | 3.1 | % | ||||||||||||||
Unsecured Senior Notes Series A & B due 2026 | 250,000 | 1.9 | % | ||||||||||||||
Unsecured Senior Notes due 2028 | 400,000 | 3.1 | % | ||||||||||||||
Unsecured Senior Notes due 2029 | 400,000 | 3.1 | % | ||||||||||||||
Unsecured Senior Notes Series A & B due 2027 & 2029 | 250,000 | 1.9 | % | ||||||||||||||
Unsecured Senior Notes due 2030 | 500,000 | 3.8 | % | ||||||||||||||
Unsecured Senior Notes due 2031 | 350,000 | 2.7 | % | ||||||||||||||
Unsecured Senior Notes due 2032 | 425,000 | 3.2 | % | ||||||||||||||
Unsecured Senior Notes due 2033 | 450,000 | 3.4 | % | ||||||||||||||
Secured debt | 247,655 | 1.9 | % | ||||||||||||||
Total debt | $ | 4,097,655 | 31.3 | % | |||||||||||||
Equity and Noncontrolling Interests in the Operating Partnership: (3) | |||||||||||||||||
Common limited partnership units outstanding (4) | 1,150,574 | $ | 87,927 | 0.7 | % | ||||||||||||
Shares of common stock outstanding | 116,716,080 | 8,919,443 | 68.0 | % | |||||||||||||
Total Equity and Noncontrolling Interests in the Operating Partnership | $ | 9,007,370 | 68.7 | % | |||||||||||||
Total Market Capitalization | $ | 13,105,025 | 100.0 | % |
Shares/Units at September 30, 2017 | Aggregate Principal Amount or $ Value Equivalent | % of Total Market Capitalization | ||||||
($ in thousands) | ||||||||
Debt: (1)(2) | ||||||||
Unsecured Line of Credit | $ | 60,000 | 0.6 | % | ||||
Unsecured Senior Notes due 2018 | 325,000 | 3.4 | % | |||||
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 | % | |||||
Unsecured Senior Notes Series A & B due 2027 & 2029 | 250,000 | 2.6 | % | |||||
Secured debt | 464,025 | 4.8 | % | |||||
Total debt | $ | 2,449,025 | 25.5 | % | ||||
Equity and Noncontrolling Interest in the Operating Partnership: (3) | ||||||||
Common limited partnership units outstanding (4)(5) | 2,077,193 | $ | 147,730 | 1.6 | % | |||
Common shares outstanding (5) | 98,382,256 | 6,996,946 | 72.9 | % | ||||
Total equity and noncontrolling interest in the Operating Partnership | $ | 7,144,676 | 74.5 | % | ||||
Total Market Capitalization | $ | 9,593,701 | 100.0 | % |
September 30, 2017 | December 31, 2016 | March 31, 2022 | December 31, 2021 | |||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||
Outstanding borrowings | $ | 60,000 | $ | — | Outstanding borrowings | $ | — | $ | — | |||||||||
Remaining borrowing capacity | 690,000 | 600,000 | Remaining borrowing capacity | 1,100,000 | 1,100,000 | |||||||||||||
Total borrowing capacity (1) | $ | 750,000 | $ | 600,000 | Total borrowing capacity (1) | $ | 1,100,000 | $ | 1,100,000 | |||||||||
Interest rate (2) | 2.24 | % | 1.82 | % | Interest rate (2) | 1.35 | % | 1.00 | % | |||||||||
Facility fee-annual rate (3) | 0.200% | Facility fee-annual rate (3) | 0.200% | |||||||||||||||
Maturity date | July 2022 | July 2019 | Maturity date | July 2025 |
September 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Outstanding borrowings (1) | $ | — | $ | 150,000 | |||
Remaining borrowing capacity | 150,000 | — | |||||
Total borrowing capacity (2) | $ | 150,000 | $ | 150,000 | |||
Interest rate (3) | 2.33 | % | 1.85 | % | |||
Undrawn facility fee-annual rate (4) | 0.200 | % | — | % | |||
Maturity date | July 2022 | July 2019 |
Aggregate Principal Amount Outstanding | |||
(in thousands) | |||
Unsecured Line of Credit (1) | $ | 60,000 | |
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 | ||
Unsecured Senior Notes Series A & B due 2027 & 2029 | 250,000 | ||
Secured Debt | 464,025 | ||
Total Unsecured and Secured Debt | $ | 2,449,025 | |
Less: Unamortized Net Discounts and Deferred Financing Costs | (13,816 | ) | |
Total Debt, Net | $ | 2,435,209 |
Aggregate Principal Amount Outstanding | |||||
(in thousands) | |||||
Unsecured Senior Notes due 2024 | $ | 425,000 | |||
Unsecured Senior Notes due 2025 | 400,000 | ||||
Unsecured Senior Notes Series A & B due 2026 | 250,000 | ||||
Unsecured Senior Notes due 2028 | 400,000 | ||||
Unsecured Senior Notes due 2029 | 400,000 | ||||
Unsecured Senior Notes Series A & B due 2027 & 2029 | 250,000 | ||||
Unsecured Senior Notes due 2030 | 500,000 | ||||
Unsecured Senior Notes due 2031 | 350,000 | ||||
Unsecured Senior Notes due 2032 | 425,000 | ||||
Unsecured Senior Notes due 2033 | 450,000 | ||||
Secured Debt | 247,655 | ||||
4,097,655 | |||||
Less: Unamortized Net Discounts and Deferred Financing Costs (2) | (29,192) | ||||
Total Debt, Net | $ | 4,068,463 |
Percentage of Total Debt (1) | Weighted Average Interest Rate (1) | ||||||||||||||||||||||
March 31, 2022 (2) | December 31, 2021 | March 31, 2022 (2) | December 31, 2021 | ||||||||||||||||||||
Secured vs. unsecured: | |||||||||||||||||||||||
Unsecured | 94.0 | % | 93.9 | % | 3.6 | % | 3.6 | % | |||||||||||||||
Secured | 6.0 | % | 6.1 | % | 3.9 | % | 3.9 | % | |||||||||||||||
Variable-rate vs. fixed-rate: | |||||||||||||||||||||||
Variable-rate | — | % | — | % | — | % | — | % | |||||||||||||||
Fixed-rate (3) | 100.0 | % | 100.0 | % | 3.7 | % | 3.7 | % | |||||||||||||||
Stated rate (3) | 3.7 | % | 3.7 | % | |||||||||||||||||||
GAAP effective rate (4) | 3.7 | % | 3.7 | % | |||||||||||||||||||
GAAP effective rate including debt issuance costs | 3.9 | % | 3.9 | % |
Unsecured Credit Facility and Private Placement Notes (as defined in the applicable Credit Agreements): | Covenant Level | Actual Performance as of March 31, 2022 | ||||||||||||
Total debt to total asset value | less than 60% | 29% | ||||||||||||
Fixed charge coverage ratio | greater than 1.5x | 3.5x | ||||||||||||
Unsecured debt ratio | greater than 1.67x | 3.25x | ||||||||||||
Unencumbered asset pool debt service coverage | greater than 1.75x | 4.05x | ||||||||||||
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% |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | Dollar Change | Percentage Change | ||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 178,659 | $ | 144,152 | $ | 34,507 | 23.9 | % | |||||||||||||||
Net cash (used in) provided by investing activities | (169,374) | 812,250 | (981,624) | 120.9 | % | ||||||||||||||||||
Net cash used in financing activities | (91,676) | (92,954) | 1,278 | (1.4) | % | ||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (82,391) | $ | 863,448 | $ | (945,839) | (109.5) | % |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Dollar Change | Percentage Change | |||||||||||
($ in thousands) | ||||||||||||||
Net cash provided by operating activities | $ | 276,542 | $ | 252,605 | $ | 23,937 | 9.5 | % | ||||||
Net cash used in investing activities | (180,712 | ) | (67,402 | ) | (113,310 | ) | 168.1 | % | ||||||
Net cash (used in) provided by financing activities | (101,729 | ) | 65,617 | (167,346 | ) | (255.0 | )% |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 66,558 | $ | 50,582 | $ | 122,720 | $ | 251,112 | Net income available to common stockholders | $ | 53,128 | $ | 497,631 | |||||||||||||||||||||||||
Adjustments: | Adjustments: | |||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 1,394 | 1,453 | 2,633 | 5,892 | Net income attributable to noncontrolling common units of the Operating Partnership | 516 | 4,886 | |||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 2,984 | 1,027 | 9,359 | 1,438 | Net income attributable to noncontrolling interests in consolidated property partnerships | 5,739 | 4,894 | |||||||||||||||||||||||||||||||
Depreciation and amortization of real estate assets | 61,141 | 55,460 | 181,875 | 157,587 | Depreciation and amortization of real estate assets | 87,001 | 74,431 | |||||||||||||||||||||||||||||||
Gains on sales of depreciable real estate | (37,250 | ) | (18,312 | ) | (39,507 | ) | (164,302 | ) | ||||||||||||||||||||||||||||||
Gain on sale of depreciable real estate | Gain on sale of depreciable real estate | — | (457,288) | |||||||||||||||||||||||||||||||||||
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships | (5,280 | ) | (1,675 | ) | (16,832 | ) | (2,277 | ) | Funds From Operations attributable to noncontrolling interests in consolidated property partnerships | (8,618) | (8,310) | |||||||||||||||||||||||||||
Funds From Operations (1)(2) | $ | 89,547 | $ | 88,535 | $ | 260,248 | $ | 249,450 | Funds From Operations (1)(2) | $ | 137,766 | $ | 116,244 |
(1) Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders. |
ITEM 1A. RISK FACTORS |
Period | Total Number of Shares of Stock Purchased (1) | Average Price Paid per Share | Total Number of Shares 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 | ||||||||||||||||||||||
January 1, 2022 - January 31, 2022 | 207,139 | $ | 66.53 | — | — | |||||||||||||||||||||
February 1, 2022 - February 28, 2022 | — | — | — | — | ||||||||||||||||||||||
March 1, 2022 - March 31, 2022 | — | — | — | — | ||||||||||||||||||||||
Total | 207,139 | $ | 66.53 | — | — |
Period | Total Number of Shares of Stock Purchased (1) | Average Price Paid per Share | Total Number of Shares 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 | |||||||||
July 1, 2017 - July 31, 2017 | 11,853 | $ | 73.35 | — | — | ||||||||
August 1, 2017 - August 31, 2017 | 6,650 | 68.78 | — | — | |||||||||
September 1, 2017 - September 30, 2017 | 249 | 68.10 | — | — | |||||||||
Total | 18,752 | $ | 71.66 | — | — |
Number |
Description | ||||||||
3.(i)1 | ||||||||
3.(i)2 | ||||||||
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3.(i) | ||||||||
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3.(ii)1 | ||||||||
3.(ii)2 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
31.3* | ||||||||
31.4* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
32.3* | ||||||||
32.4* | ||||||||
101.1 | The following Kilroy Realty Corporation and Kilroy Realty, L.P. financial information for the quarter ended | |||||||
104.1* | Cover Page Interactive Data File - The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |
* | 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/ John Kilroy | ||||||||
John Kilroy Chief Executive Officer (Principal Executive Officer) | ||||||||
By: | /s/ | |||||||
Eliott Trencher Executive Vice President, Interim Chief Financial Officer and Treasurer (Principal Financial Officer) | ||||||||
By: | /s/ | |||||||
Senior Vice President, and Controller (Principal Accounting Officer) |
KILROY REALTY, L.P. | ||||||||
BY: | KILROY REALTY CORPORATION | |||||||
Its general partner | ||||||||
/s/ John Kilroy | ||||||||
John Kilroy Chief Executive Officer (Principal Executive Officer) | ||||||||
By: | /s/ | |||||||
Eliott Trencher Executive Vice President, Interim Chief Financial Officer and Treasurer (Principal Financial Officer) | ||||||||
By: | /s/ | |||||||
Senior Vice President, and Controller (Principal Accounting Officer) |