☑ | 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) | ||||||||||
(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. | |||||||||||
June 30, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
REAL ESTATE ASSETS (Notes 2 and 3): | |||||||||||
Land and improvements | $ | 1,551,653 | $ | 1,628,848 | |||||||
Buildings and improvements | 6,682,208 | 6,783,092 | |||||||||
Undeveloped land and construction in progress | 2,318,215 | 1,778,106 | |||||||||
Total real estate assets held for investment | 10,552,076 | 10,190,046 | |||||||||
Accumulated depreciation and amortization | (1,900,740) | (1,798,646) | |||||||||
Total real estate assets held for investment, net | 8,651,336 | 8,391,400 | |||||||||
CASH AND CASH EQUIVALENTS | 519,307 | 731,991 | |||||||||
RESTRICTED CASH (Note 3) | 450,457 | 91,139 | |||||||||
MARKETABLE SECURITIES (Note 12) | 25,885 | 27,481 | |||||||||
CURRENT RECEIVABLES, NET | 9,773 | 12,007 | |||||||||
DEFERRED RENT RECEIVABLES, NET | 384,475 | 386,658 | |||||||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 184,510 | 210,949 | |||||||||
RIGHT OF USE GROUND LEASE ASSETS (Notes 2 and 11) | 141,529 | 95,523 | |||||||||
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 4) | 67,494 | 53,560 | |||||||||
TOTAL ASSETS | $ | 10,434,766 | $ | 10,000,708 | |||||||
LIABILITIES AND EQUITY | |||||||||||
LIABILITIES: | |||||||||||
Secured debt, net (Notes 5 and 12) | $ | 251,000 | $ | 253,582 | |||||||
Unsecured debt, net (Notes 5 and 12) | 3,672,152 | 3,670,099 | |||||||||
Accounts payable, accrued expenses and other liabilities | 429,168 | 445,100 | |||||||||
Ground lease liabilities (Notes 2 and 11) | 143,885 | 97,778 | |||||||||
Accrued dividends and distributions (Note 17) | 59,455 | 59,431 | |||||||||
Deferred revenue and acquisition-related intangible liabilities, net | 122,902 | 128,523 | |||||||||
Rents received in advance and tenant security deposits | 62,739 | 68,874 | |||||||||
Total liabilities | 4,741,301 | 4,723,387 | |||||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | 0 | 0 | |||||||||
EQUITY: | |||||||||||
Stockholders’ Equity (Note 6): | |||||||||||
Common stock, $.01 par value, 280,000,000 shares authorized, 116,454,210 and 116,035,827 shares issued and outstanding, respectively | 1,165 | 1,160 | |||||||||
Additional paid-in capital | 5,134,320 | 5,131,916 | |||||||||
Retained earnings (distributions in excess of earnings) | 311,458 | (103,133) | |||||||||
Total stockholders’ equity | 5,446,943 | 5,029,943 | |||||||||
Noncontrolling Interests (Notes 1 and 7): | |||||||||||
Common units of the Operating Partnership | 53,810 | 49,875 | |||||||||
Noncontrolling interests in consolidated property partnerships | 192,712 | 197,503 | |||||||||
Total noncontrolling interests | 246,522 | 247,378 | |||||||||
Total equity | 5,693,465 | 5,277,321 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 10,434,766 | $ | 10,000,708 |
June 30, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
REAL ESTATE ASSETS: | |||||||
Land and improvements | $ | 1,546,209 | $ | 1,466,166 | |||
Buildings and improvements | 6,289,816 | 5,866,477 | |||||
Undeveloped land and construction in progress | 2,109,196 | 2,296,130 | |||||
Total real estate assets held for investment | 9,945,221 | 9,628,773 | |||||
Accumulated depreciation and amortization | (1,684,837 | ) | (1,561,361 | ) | |||
Total real estate assets held for investment, net | 8,260,384 | 8,067,412 | |||||
CASH AND CASH EQUIVALENTS (Note 4) | 605,012 | 60,044 | |||||
RESTRICTED CASH | 16,300 | 16,300 | |||||
MARKETABLE SECURITIES (Note 10) | 23,175 | 27,098 | |||||
CURRENT RECEIVABLES, NET | 20,925 | 26,489 | |||||
DEFERRED RENT RECEIVABLES, NET | 358,914 | 337,937 | |||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 209,637 | 212,805 | |||||
RIGHT OF USE GROUND LEASE ASSETS (Note 9) | 95,940 | 96,348 | |||||
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 2) | 68,378 | 55,661 | |||||
TOTAL ASSETS | $ | 9,658,665 | $ | 8,900,094 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES: | |||||||
Secured debt, net (Notes 3 and 10) | $ | 256,113 | $ | 258,593 | |||
Unsecured debt, net (Notes 3, and 10) | 3,399,105 | 3,049,185 | |||||
Unsecured line of credit (Notes 3 and 10) | — | 245,000 | |||||
Accounts payable, accrued expenses and other liabilities | 401,378 | 418,848 | |||||
Ground lease liabilities (Note 9) | 98,093 | 98,400 | |||||
Accrued dividends and distributions (Note 15) | 57,600 | 53,219 | |||||
Deferred revenue and acquisition-related intangible liabilities, net | 129,264 | 139,488 | |||||
Rents received in advance and tenant security deposits | 63,523 | 66,503 | |||||
Total liabilities | 4,405,076 | 4,329,236 | |||||
COMMITMENTS AND CONTINGENCIES (Note 9) | |||||||
EQUITY: | |||||||
Stockholders’ Equity (Note 4): | |||||||
Common stock, $.01 par value, 280,000,000 and 150,000,000 shares authorized, respectively, 115,176,538 and 106,016,287 shares issued and outstanding, respectively | 1,152 | 1,060 | |||||
Additional paid-in capital | 5,084,362 | 4,350,917 | |||||
Distributions in excess of earnings | (113,223 | ) | (58,467 | ) | |||
Total stockholders’ equity | 4,972,291 | 4,293,510 | |||||
Noncontrolling Interests (Notes 1 and 5): | |||||||
Common units of the Operating Partnership | 83,502 | 81,917 | |||||
Noncontrolling interests in consolidated property partnerships | 197,796 | 195,431 | |||||
Total noncontrolling interests | 281,298 | 277,348 | |||||
Total equity | 5,253,589 | 4,570,858 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 9,658,665 | $ | 8,900,094 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Rental income (Note 10) | $ | 224,473 | $ | 218,356 | $ | 459,129 | $ | 436,989 | |||||||||||||||
Other property income | 1,510 | 1,067 | 2,500 | 3,762 | |||||||||||||||||||
Total revenues | 225,983 | 219,423 | 461,629 | 440,751 | |||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Property expenses | 40,482 | 37,829 | 79,341 | 76,812 | |||||||||||||||||||
Real estate taxes | 22,109 | 21,854 | 47,375 | 44,056 | |||||||||||||||||||
Ground leases (Note 11) | 2,023 | 2,330 | 3,851 | 4,647 | |||||||||||||||||||
General and administrative expenses (Note 9) | 24,507 | 38,597 | 46,492 | 57,607 | |||||||||||||||||||
Leasing costs | 883 | 1,330 | 1,575 | 2,786 | |||||||||||||||||||
Depreciation and amortization | 73,589 | 80,085 | 149,521 | 154,455 | |||||||||||||||||||
Total expenses | 163,593 | 182,025 | 328,155 | 340,363 | |||||||||||||||||||
OTHER INCOME (EXPENSES) | |||||||||||||||||||||||
Interest income and other net investment gain (loss) (Note 12) | 1,337 | 2,838 | 2,710 | (290) | |||||||||||||||||||
Interest expense (Note 5) | (21,390) | (15,884) | (43,724) | (30,328) | |||||||||||||||||||
Gain on sale of depreciable operating property (Note 3) | 543 | 0 | 457,831 | 0 | |||||||||||||||||||
Total other (expenses) income | (19,510) | (13,046) | 416,817 | (30,618) | |||||||||||||||||||
NET INCOME | 42,880 | 24,352 | 550,291 | 69,770 | |||||||||||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | (354) | (367) | (5,240) | (1,072) | |||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | (6,687) | (4,367) | (11,581) | (9,263) | |||||||||||||||||||
Total income attributable to noncontrolling interests | (7,041) | (4,734) | (16,821) | (10,335) | |||||||||||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 35,839 | $ | 19,618 | $ | 533,470 | $ | 59,435 | |||||||||||||||
Net income available to common stockholders per share – basic (Note 13) | $ | 0.30 | $ | 0.17 | $ | 4.58 | $ | 0.53 | |||||||||||||||
Net income available to common stockholders per share – diluted (Note 13) | $ | 0.30 | $ | 0.17 | $ | 4.56 | $ | 0.52 | |||||||||||||||
Weighted average common shares outstanding – basic (Note 13) | 116,451,931 | 115,084,897 | 116,398,450 | 110,980,066 | |||||||||||||||||||
Weighted average common shares outstanding – diluted (Note 13) | 116,917,463 | 115,539,725 | 116,859,745 | 111,464,647 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
REVENUES | |||||||||||||||
Rental income (Note 8) | $ | 218,356 | $ | 197,629 | $ | 436,989 | $ | 397,011 | |||||||
Other property income | 1,067 | 2,863 | 3,762 | 4,683 | |||||||||||
Total revenues | 219,423 | 200,492 | 440,751 | 401,694 | |||||||||||
EXPENSES | |||||||||||||||
Property expenses | 37,829 | 38,536 | 76,812 | 76,685 | |||||||||||
Real estate taxes | 21,854 | 17,926 | 44,056 | 36,565 | |||||||||||
Ground leases (Note 9) | 2,330 | 2,114 | 4,647 | 4,086 | |||||||||||
General and administrative expenses (Notes 7 and 10) | 38,597 | 19,857 | 57,607 | 43,198 | |||||||||||
Leasing costs | 1,330 | 2,650 | 2,786 | 4,407 | |||||||||||
Depreciation and amortization | 80,085 | 68,252 | 154,455 | 134,387 | |||||||||||
Total expenses | 182,025 | 149,335 | 340,363 | 299,328 | |||||||||||
OTHER (EXPENSES) INCOME | |||||||||||||||
Interest income and other net investment gain (loss) (Note 10) | 2,838 | 616 | (290 | ) | 2,444 | ||||||||||
Interest expense (Note 3) | (15,884 | ) | (11,727 | ) | (30,328 | ) | (22,970 | ) | |||||||
Gains on sales of depreciable operating properties | — | 7,169 | — | 7,169 | |||||||||||
Total other (expenses) income | (13,046 | ) | (3,942 | ) | (30,618 | ) | (13,357 | ) | |||||||
NET INCOME | 24,352 | 47,215 | 69,770 | 89,009 | |||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | (367 | ) | (871 | ) | (1,072 | ) | (1,571 | ) | |||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | (4,367 | ) | (4,150 | ) | (9,263 | ) | (8,341 | ) | |||||||
Total income attributable to noncontrolling interests | (4,734 | ) | (5,021 | ) | (10,335 | ) | (9,912 | ) | |||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 19,618 | $ | 42,194 | $ | 59,435 | $ | 79,097 | |||||||
Net income available to common stockholders per share – basic (Note 11) | $ | 0.17 | $ | 0.41 | $ | 0.53 | $ | 0.77 | |||||||
Net income available to common stockholders per share – diluted (Note 11) | $ | 0.17 | $ | 0.41 | $ | 0.52 | $ | 0.77 | |||||||
Weighted average common shares outstanding – basic (Note 11) | 115,084,897 | 100,972,355 | 110,980,066 | 100,937,069 | |||||||||||
Weighted average common shares outstanding – diluted (Note 11) | 115,539,725 | 101,809,541 | 111,464,647 | 101,618,953 |
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 (Note 9) | 9,604 | 9,604 | 9,604 | ||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 769,701 | 8 | (8) | — | 0 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock, stock options 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) | 0 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Net income | 35,839 | 35,839 | 7,041 | 42,880 | |||||||||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 645 | 645 | 645 | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation (Note 9) | 11,193 | 11,193 | 11,193 | ||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 3,840 | — | — | — | 0 | ||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (4,692) | (4,692) | ||||||||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest | (102) | (102) | 102 | 0 | |||||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share and common unit ($0.500 per share/unit) (Note 17) | (58,877) | (58,877) | (576) | (59,453) | |||||||||||||||||||||||||||||||||||||||||||
BALANCE AS OF JUNE 30, 2021 | 116,454,210 | $ | 1,165 | $ | 5,134,320 | $ | 311,458 | $ | 5,446,943 | $ | 246,522 | $ | 5,693,465 | ||||||||||||||||||||||||||||||||||
Common Stock | Total Stock- holders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||
Number of Shares | Common Stock | Additional Paid-in Capital | Distributions in Excess of Earnings | |||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2019 | 106,016,287 | $ | 1,060 | $ | 4,350,917 | $ | (58,467 | ) | $ | 4,293,510 | $ | 277,348 | $ | 4,570,858 | ||||||||||||
Net income | 39,817 | 39,817 | 5,601 | 45,418 | ||||||||||||||||||||||
Issuance of common stock (Note 4) | 8,897,110 | 89 | 721,705 | 721,794 | 721,794 | |||||||||||||||||||||
Issuance of share-based compensation awards | 1,720 | 1,720 | 1,720 | |||||||||||||||||||||||
Non-cash amortization of share-based compensation (Note 7) | 8,653 | 8,653 | 8,653 | |||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 269,972 | 3 | (3 | ) | — | — | ||||||||||||||||||||
Repurchase of common stock, stock options and restricted stock units | (117,445 | ) | (1 | ) | (9,798 | ) | (9,799 | ) | (9,799 | ) | ||||||||||||||||
Exchange of common units of the Operating Partnership | 2,000 | — | 81 | 81 | (81 | ) | — | |||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (2,617 | ) | (2,617 | ) | |||||||||||||||||||||
Adjustment for noncontrolling interest | (6,094 | ) | (6,094 | ) | 6,094 | — | ||||||||||||||||||||
Dividends declared per common share and common unit ($0.485 per share/unit) | (57,532 | ) | (57,532 | ) | (980 | ) | (58,512 | ) | ||||||||||||||||||
BALANCE AS OF MARCH 31, 2020 | 115,067,924 | 1,151 | 5,067,181 | (76,182 | ) | 4,992,150 | 285,365 | 5,277,515 | ||||||||||||||||||
Net income | 19,618 | 19,618 | 4,734 | 24,352 | ||||||||||||||||||||||
Issuance of common stock | — | — | (45 | ) | (45 | ) | (45 | ) | ||||||||||||||||||
Issuance of share-based compensation awards | 805 | 805 | 805 | |||||||||||||||||||||||
Non-cash amortization of share-based compensation (Note 7) | 13,576 | 13,576 | 13,576 | |||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 33,581 | — | — | — | — | |||||||||||||||||||||
Repurchase of common stock, stock options and restricted stock units | (11,668 | ) | — | (735 | ) | (735 | ) | (735 | ) | |||||||||||||||||
Exchange of common units of the Operating Partnership | 86,701 | 1 | 3,761 | 3,762 | (3,762 | ) | — | |||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (4,281 | ) | (4,281 | ) | |||||||||||||||||||||
Adjustment for noncontrolling interest | (181 | ) | (181 | ) | 181 | — | ||||||||||||||||||||
Dividends declared per common share and common unit ($0.485 per share/unit) | (56,659 | ) | (56,659 | ) | (939 | ) | (57,598 | ) | ||||||||||||||||||
BALANCE AS OF JUNE 30, 2020 | 115,176,538 | $ | 1,152 | $ | 5,084,362 | $ | (113,223 | ) | $ | 4,972,291 | $ | 281,298 | $ | 5,253,589 | ||||||||||||
Common Stock | Total Stock- holders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||
Number of Shares | Common Stock | Additional Paid-in Capital | Distributions in Excess of Earnings | ||||||||||||||||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2019 | 106,016,287 | $ | 1,060 | $ | 4,350,917 | $ | (58,467) | $ | 4,293,510 | $ | 277,348 | $ | 4,570,858 | ||||||||||||||||||||||||||||
Net income | 39,817 | 39,817 | 5,601 | 45,418 | |||||||||||||||||||||||||||||||||||||
Issuance of common stock | 8,897,110 | 89 | 721,705 | 721,794 | 721,794 | ||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 1,720 | 1,720 | 1,720 | ||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation | 8,653 | 8,653 | 8,653 | ||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 269,972 | 3 | (3) | — | 0 | ||||||||||||||||||||||||||||||||||||
Repurchase of common stock, stock options and restricted stock units | (117,445) | (1) | (9,798) | (9,799) | (9,799) | ||||||||||||||||||||||||||||||||||||
Exchange of common units of the Operating Partnership | 2,000 | — | 81 | 81 | (81) | 0 | |||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (2,617) | (2,617) | ||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest | (6,094) | (6,094) | 6,094 | 0 | |||||||||||||||||||||||||||||||||||||
Dividends declared per common share and common unit ($0.485 per share/unit) | (57,532) | (57,532) | (980) | (58,512) | |||||||||||||||||||||||||||||||||||||
BALANCE AS OF MARCH 31, 2020 | 115,067,924 | 1,151 | 5,067,181 | (76,182) | 4,992,150 | 285,365 | 5,277,515 | ||||||||||||||||||||||||||||||||||
Net income | 19,618 | 19,618 | 4,734 | 24,352 | |||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | (45) | (45) | (45) | ||||||||||||||||||||||||||||||||||||
Issuance of share-based compensation awards | 805 | 805 | 805 | ||||||||||||||||||||||||||||||||||||||
Non-cash amortization of share-based compensation | 13,576 | 13,576 | 13,576 | ||||||||||||||||||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 33,581 | — | — | — | 0 | ||||||||||||||||||||||||||||||||||||
Repurchase of common stock, stock options, and restricted stock units | (11,668) | — | (735) | (735) | (735) | ||||||||||||||||||||||||||||||||||||
Exchange of common units of the Operating Partnership | 86,701 | 1 | 3,761 | 3,762 | (3,762) | 0 | |||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (4,281) | (4,281) | ||||||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interest | (181) | (181) | 181 | 0 | |||||||||||||||||||||||||||||||||||||
Dividends declared per common share and common unit ($0.485 per share/unit) | (56,659) | (56,659) | (939) | (57,598) | |||||||||||||||||||||||||||||||||||||
BALANCE AS OF JUNE 30, 2020 | 115,176,538 | $ | 1,152 | $ | 5,084,362 | $ | (113,223) | $ | 4,972,291 | $ | 281,298 | $ | 5,253,589 | ||||||||||||||||||||||||||||
Common Stock | Total Stock- holders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||
Number of Shares | Common Stock | Additional Paid-in Capital | Distributions in Excess of Earnings | |||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2018 | 100,746,988 | $ | 1,007 | $ | 3,976,953 | $ | (48,053 | ) | $ | 3,929,907 | $ | 271,354 | $ | 4,201,261 | ||||||||||||
Net income | 36,903 | 36,903 | 4,891 | 41,794 | ||||||||||||||||||||||
Opening adjustment to Distributions in Excess of Earnings upon adoption of ASC 842 | (3,146 | ) | (3,146 | ) | (3,146 | ) | ||||||||||||||||||||
Issuance of share-based compensation awards | 2,210 | 2,210 | 2,210 | |||||||||||||||||||||||
Non-cash amortization of share-based compensation | 8,817 | 8,817 | 8,817 | |||||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 393,240 | 4 | (4 | ) | — | — | ||||||||||||||||||||
Repurchase of common stock, stock options and restricted stock units | (175,204 | ) | (1 | ) | (12,129 | ) | (12,130 | ) | (12,130 | ) | ||||||||||||||||
Exchange of common units of the Operating Partnership | 2,000 | — | 78 | 78 | (78 | ) | — | |||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (6,309 | ) | (6,309 | ) | |||||||||||||||||||||
Adjustment for noncontrolling interest | 279 | 279 | (279 | ) | — | |||||||||||||||||||||
Dividends declared per common share and common unit ($0.455 per share/unit) | (48,394 | ) | (48,394 | ) | (921 | ) | (49,315 | ) | ||||||||||||||||||
BALANCE AS OF MARCH 31, 2019 | 100,967,024 | 1,010 | 3,976,204 | (62,690 | ) | 3,914,524 | 268,658 | 4,183,182 | ||||||||||||||||||
Net income | 42,194 | 42,194 | 5,021 | 47,215 | ||||||||||||||||||||||
Issuance of share-based compensation awards | 820 | 820 | 820 | |||||||||||||||||||||||
Non-cash amortization of share-based compensation | 8,732 | 8,732 | 8,732 | |||||||||||||||||||||||
Exercise of stock options | 1,500 | — | 64 | 64 | 64 | |||||||||||||||||||||
Settlement of restricted stock units for shares of common stock | 16,270 | — | — | — | — | |||||||||||||||||||||
Repurchase and cancellation of common stock, stock options, and restricted stock units | (12,759 | ) | — | (793 | ) | (793 | ) | (793 | ) | |||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | — | (1,487 | ) | (1,487 | ) | |||||||||||||||||||||
Adjustment for noncontrolling interest | (160 | ) | (160 | ) | 160 | — | ||||||||||||||||||||
Dividends declared per common share and common unit ($0.485 per share/unit) | (49,849 | ) | (49,849 | ) | (981 | ) | (50,830 | ) | ||||||||||||||||||
BALANCE AS OF JUNE 30, 2019 | 100,972,035 | $ | 1,010 | $ | 3,984,867 | $ | (70,345 | ) | $ | 3,915,532 | $ | 271,371 | $ | 4,186,903 |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 550,291 | $ | 69,770 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of real estate assets and leasing costs | 146,468 | 148,419 | |||||||||
Depreciation of non-real estate furniture, fixtures and equipment | 3,053 | 6,036 | |||||||||
Revenue reversals for doubtful accounts, net (Note 10) | 746 | 12,381 | |||||||||
Non-cash amortization of share-based compensation awards | 17,415 | 18,311 | |||||||||
Non-cash amortization of deferred financing costs and debt discounts | 1,590 | 1,076 | |||||||||
Non-cash amortization of net below market rents | (2,194) | (4,500) | |||||||||
Gain on sale of depreciable operating property (Note 3) | (457,831) | 0 | |||||||||
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (8,915) | (8,793) | |||||||||
Straight-line rents | (31,029) | (33,514) | |||||||||
Amortization of right of use ground lease assets | 424 | 408 | |||||||||
Net change in other operating assets | (3,622) | 13,991 | |||||||||
Net change in other operating liabilities | 70 | 437 | |||||||||
Net cash provided by operating activities | 216,466 | 224,022 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Expenditures for development properties and undeveloped land | (263,227) | (293,711) | |||||||||
Expenditures for operating properties and other capital assets | (63,903) | (80,630) | |||||||||
Expenditures for acquisitions of development properties and undeveloped land (Note 2) | (586,927) | 0 | |||||||||
Net proceeds received from dispositions (Note 3) | 1,013,359 | 0 | |||||||||
Net increase in acquisition-related deposits | (4,000) | 0 | |||||||||
Net cash provided by (used in) investing activities | 95,302 | (374,341) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Principal payments and repayments of secured debt | (2,645) | (2,543) | |||||||||
Financing costs (Note 5) | (7,569) | (2,283) | |||||||||
Repurchase of common stock and restricted stock units | (21,137) | (10,534) | |||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (16,389) | (6,915) | |||||||||
Dividends and distributions paid to common stockholders and common unitholders | (117,394) | (109,187) | |||||||||
Net proceeds from issuance of common stock | 0 | 721,749 | |||||||||
Proceeds from the issuance of unsecured debt (Note 5) | 0 | 350,000 | |||||||||
Borrowings on unsecured revolving credit facility | 0 | 190,000 | |||||||||
Repayments on unsecured revolving credit facility | 0 | (435,000) | |||||||||
Net cash (used in) provided by financing activities | (165,134) | 695,287 | |||||||||
Net increase in cash and cash equivalents and restricted cash | 146,634 | 544,968 | |||||||||
Cash and cash equivalents and restricted cash, beginning of period | 823,130 | 76,344 | |||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 969,764 | $ | 621,312 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 69,770 | $ | 89,009 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of real estate assets and leasing costs | 148,419 | 131,982 | |||||
Depreciation of non-real estate furniture, fixtures and equipment | 6,036 | 2,405 | |||||
Revenue reversals (recoveries) for doubtful accounts (Note 8) | 12,381 | (3,091 | ) | ||||
Non-cash amortization of share-based compensation awards | 18,311 | 14,082 | |||||
Non-cash amortization of deferred financing costs and debt discounts and premiums | 1,076 | 717 | |||||
Non-cash amortization of net below market rents | (4,500 | ) | (4,415 | ) | |||
Gain on sale of depreciable operating properties | — | (7,169 | ) | ||||
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (8,793 | ) | (8,181 | ) | |||
Straight-line rents | (33,514 | ) | (29,937 | ) | |||
Amortization of right of use ground lease assets | 408 | 291 | |||||
Net change in other operating assets | 13,991 | (15,540 | ) | ||||
Net change in other operating liabilities | 437 | (4,493 | ) | ||||
Net cash provided by operating activities | 224,022 | 165,660 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Expenditures for development properties and undeveloped land | (293,711 | ) | (372,750 | ) | |||
Expenditures for operating properties and other capital assets | (80,630 | ) | (61,557 | ) | |||
Net proceeds received from dispositions | — | 17,271 | |||||
Net cash used in investing activities | (374,341 | ) | (417,036 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net proceeds from issuance of common stock (Note 4) | 721,749 | — | |||||
Proceeds from the issuance of unsecured debt (Note 3) | 350,000 | — | |||||
Borrowings on unsecured revolving credit facility (Note 3) | 190,000 | 425,000 | |||||
Repayments on unsecured revolving credit facility (Note 3) | (435,000 | ) | (95,000 | ) | |||
Principal payments and repayments of secured debt (Note 3) | (2,543 | ) | (75,384 | ) | |||
Financing costs | (2,283 | ) | (1,335 | ) | |||
Repurchase of common stock and restricted stock units | (10,534 | ) | (12,618 | ) | |||
Proceeds from exercise of stock options | — | 64 | |||||
Distributions to noncontrolling interests in consolidated property partnerships | (6,915 | ) | (7,812 | ) | |||
Dividends and distributions paid to common stockholders and common unitholders | (109,187 | ) | (93,858 | ) | |||
Net cash provided by financing activities | 695,287 | 139,057 | |||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 544,968 | (112,319 | ) | ||||
Cash and cash equivalents and restricted cash, beginning of period | 76,344 | 171,034 | |||||
Cash and cash equivalents and restricted cash, end of period | $ | 621,312 | $ | 58,715 |
June 30, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
REAL ESTATE ASSETS (Notes 2 and 3): | |||||||||||
Land and improvements | $ | 1,551,653 | $ | 1,628,848 | |||||||
Buildings and improvements | 6,682,208 | 6,783,092 | |||||||||
Undeveloped land and construction in progress | 2,318,215 | 1,778,106 | |||||||||
Total real estate assets held for investment | 10,552,076 | 10,190,046 | |||||||||
Accumulated depreciation and amortization | (1,900,740) | (1,798,646) | |||||||||
Total real estate assets held for investment, net | 8,651,336 | 8,391,400 | |||||||||
CASH AND CASH EQUIVALENTS | 519,307 | 731,991 | |||||||||
RESTRICTED CASH (Note 3) | 450,457 | 91,139 | |||||||||
MARKETABLE SECURITIES (Note 12) | 25,885 | 27,481 | |||||||||
CURRENT RECEIVABLES, NET | 9,773 | 12,007 | |||||||||
DEFERRED RENT RECEIVABLES, NET | 384,475 | 386,658 | |||||||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 184,510 | 210,949 | |||||||||
RIGHT OF USE GROUND LEASE ASSETS (Notes 2 and 11) | 141,529 | 95,523 | |||||||||
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 4) | 67,494 | 53,560 | |||||||||
TOTAL ASSETS | $ | 10,434,766 | $ | 10,000,708 | |||||||
LIABILITIES AND CAPITAL | |||||||||||
LIABILITIES: | |||||||||||
Secured debt, net (Notes 5 and 12) | $ | 251,000 | $ | 253,582 | |||||||
Unsecured debt, net (Notes 5 and 12) | 3,672,152 | 3,670,099 | |||||||||
Accounts payable, accrued expenses and other liabilities | 429,168 | 445,100 | |||||||||
Ground lease liabilities (Notes 2 and 11) | 143,885 | 97,778 | |||||||||
Accrued distributions (Note 17) | 59,455 | 59,431 | |||||||||
Deferred revenue and acquisition-related intangible liabilities, net | 122,902 | 128,523 | |||||||||
Rents received in advance and tenant security deposits | 62,739 | 68,874 | |||||||||
Total liabilities | 4,741,301 | 4,723,387 | |||||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | 0 | 0 | |||||||||
CAPITAL: | |||||||||||
Common units, 116,454,210 and 116,035,827 held by the general partner and 1,150,574 and 1,150,574 held by common limited partners issued and outstanding, respectively (Note 7) | 5,500,753 | 5,079,818 | |||||||||
Noncontrolling interests in consolidated property partnerships (Note 1) | 192,712 | 197,503 | |||||||||
Total capital | 5,693,465 | 5,277,321 | |||||||||
TOTAL LIABILITIES AND CAPITAL | $ | 10,434,766 | $ | 10,000,708 |
June 30, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
REAL ESTATE ASSETS: | |||||||
Land and improvements | $ | 1,546,209 | $ | 1,466,166 | |||
Buildings and improvements | 6,289,816 | 5,866,477 | |||||
Undeveloped land and construction in progress | 2,109,196 | 2,296,130 | |||||
Total real estate assets held for investment | 9,945,221 | 9,628,773 | |||||
Accumulated depreciation and amortization | (1,684,837 | ) | (1,561,361 | ) | |||
Total real estate assets held for investment, net | 8,260,384 | 8,067,412 | |||||
CASH AND CASH EQUIVALENTS (Note 4) | 605,012 | 60,044 | |||||
RESTRICTED CASH | 16,300 | 16,300 | |||||
MARKETABLE SECURITIES (Note 10) | 23,175 | 27,098 | |||||
CURRENT RECEIVABLES, NET | 20,925 | 26,489 | |||||
DEFERRED RENT RECEIVABLES, NET | 358,914 | 337,937 | |||||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 209,637 | 212,805 | |||||
RIGHT OF USE GROUND LEASE ASSETS (Note 9) | 95,940 | 96,348 | |||||
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 2) | 68,378 | 55,661 | |||||
TOTAL ASSETS | $ | 9,658,665 | $ | 8,900,094 | |||
LIABILITIES AND CAPITAL | |||||||
LIABILITIES: | |||||||
Secured debt, net (Notes 3 and 10) | $ | 256,113 | $ | 258,593 | |||
Unsecured debt, net (Notes 3, 10) | 3,399,105 | 3,049,185 | |||||
Unsecured line of credit (Notes 3 and 10) | — | 245,000 | |||||
Accounts payable, accrued expenses and other liabilities | 401,378 | 418,848 | |||||
Ground lease liabilities (Note 9) | 98,093 | 98,400 | |||||
Accrued distributions (Note 15) | 57,600 | 53,219 | |||||
Deferred revenue and acquisition-related intangible liabilities, net | 129,264 | 139,488 | |||||
Rents received in advance and tenant security deposits | 63,523 | 66,503 | |||||
Total liabilities | 4,405,076 | 4,329,236 | |||||
COMMITMENTS AND CONTINGENCIES (Note 9) | |||||||
CAPITAL: | |||||||
Common units, 115,176,538 and 106,016,287 held by the general partner and 1,934,586 and 2,023,287 held by common limited partners issued and outstanding, respectively (Note 6) | 5,049,844 | 4,369,758 | |||||
Noncontrolling interests in consolidated property partnerships and subsidiaries (Note 1) | 203,745 | 201,100 | |||||
Total capital | 5,253,589 | 4,570,858 | |||||
TOTAL LIABILITIES AND CAPITAL | $ | 9,658,665 | $ | 8,900,094 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Rental income (Note 10) | $ | 224,473 | $ | 218,356 | $ | 459,129 | $ | 436,989 | |||||||||||||||
Other property income | 1,510 | 1,067 | 2,500 | 3,762 | |||||||||||||||||||
Total revenues | 225,983 | 219,423 | 461,629 | 440,751 | |||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Property expenses | 40,482 | 37,829 | 79,341 | 76,812 | |||||||||||||||||||
Real estate taxes | 22,109 | 21,854 | 47,375 | 44,056 | |||||||||||||||||||
Ground leases (Note 11) | 2,023 | 2,330 | 3,851 | 4,647 | |||||||||||||||||||
General and administrative expenses (Note 9) | 24,507 | 38,597 | 46,492 | 57,607 | |||||||||||||||||||
Leasing costs | 883 | 1,330 | 1,575 | 2,786 | |||||||||||||||||||
Depreciation and amortization | 73,589 | 80,085 | 149,521 | 154,455 | |||||||||||||||||||
Total expenses | 163,593 | 182,025 | 328,155 | 340,363 | |||||||||||||||||||
OTHER INCOME (EXPENSES) | |||||||||||||||||||||||
Interest income and other net investment gain (loss) (Note 12) | 1,337 | 2,838 | 2,710 | (290) | |||||||||||||||||||
Interest expense (Note 5) | (21,390) | (15,884) | (43,724) | (30,328) | |||||||||||||||||||
Gain on sale of depreciable operating property (Note 3) | 543 | 0 | 457,831 | 0 | |||||||||||||||||||
Total other (expenses) income | (19,510) | (13,046) | 416,817 | (30,618) | |||||||||||||||||||
NET INCOME | 42,880 | 24,352 | 550,291 | 69,770 | |||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships and subsidiaries | (6,687) | (4,514) | (11,581) | (9,543) | |||||||||||||||||||
NET INCOME AVAILABLE TO COMMON UNITHOLDERS | $ | 36,193 | $ | 19,838 | $ | 538,710 | $ | 60,227 | |||||||||||||||
Net income available to common unitholders per unit – basic (Note 14) | $ | 0.30 | $ | 0.16 | $ | 4.58 | $ | 0.52 | |||||||||||||||
Net income available to common unitholders per unit – diluted (Note 14) | $ | 0.30 | $ | 0.16 | $ | 4.56 | $ | 0.52 | |||||||||||||||
Weighted average common units outstanding – basic (Note 14) | 117,602,505 | 117,098,562 | 117,549,024 | 112,997,795 | |||||||||||||||||||
Weighted average common units outstanding – diluted (Note 14) | 118,068,037 | 117,553,390 | 118,010,319 | 113,482,376 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
REVENUES | |||||||||||||||
Rental income (Note 8) | $ | 218,356 | $ | 197,629 | $ | 436,989 | $ | 397,011 | |||||||
Other property income | 1,067 | 2,863 | 3,762 | 4,683 | |||||||||||
Total revenues | 219,423 | 200,492 | 440,751 | 401,694 | |||||||||||
EXPENSES | |||||||||||||||
Property expenses | 37,829 | 38,536 | 76,812 | 76,685 | |||||||||||
Real estate taxes | 21,854 | 17,926 | 44,056 | 36,565 | |||||||||||
Ground leases (Note 9) | 2,330 | 2,114 | 4,647 | 4,086 | |||||||||||
General and administrative expenses (Notes 7 and 10) | 38,597 | 19,857 | 57,607 | 43,198 | |||||||||||
Leasing costs | 1,330 | 2,650 | 2,786 | 4,407 | |||||||||||
Depreciation and amortization | 80,085 | 68,252 | 154,455 | 134,387 | |||||||||||
Total expenses | 182,025 | 149,335 | 340,363 | 299,328 | |||||||||||
OTHER (EXPENSES) INCOME | |||||||||||||||
Interest income and other net investment gain (loss) (Note 10) | 2,838 | 616 | (290 | ) | 2,444 | ||||||||||
Interest expense (Note 3) | (15,884 | ) | (11,727 | ) | (30,328 | ) | (22,970 | ) | |||||||
Gains on sales of depreciable operating properties | — | 7,169 | — | 7,169 | |||||||||||
Total other (expenses) income | (13,046 | ) | (3,942 | ) | (30,618 | ) | (13,357 | ) | |||||||
NET INCOME | 24,352 | 47,215 | 69,770 | 89,009 | |||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships and subsidiaries | (4,514 | ) | (4,314 | ) | (9,543 | ) | (8,600 | ) | |||||||
NET INCOME AVAILABLE TO COMMON UNITHOLDERS | $ | 19,838 | $ | 42,901 | $ | 60,227 | $ | 80,409 | |||||||
Net income available to common unitholders per unit – basic (Note 12) | $ | 0.16 | $ | 0.41 | $ | 0.52 | $ | 0.77 | |||||||
Net income available to common unitholders per unit – diluted (Note 12) | $ | 0.16 | $ | 0.41 | $ | 0.52 | $ | 0.77 | |||||||
Weighted average common units outstanding – basic (Note 12) | 117,098,562 | 102,995,642 | 112,997,795 | 102,960,599 | |||||||||||
Weighted average common units outstanding – diluted (Note 12) | 117,553,390 | 103,832,828 | 113,482,376 | 103,642,483 |
Partners’ Capital | Noncontrolling Interests in Consolidated Property Partnerships | ||||||||||||||||||||||||||||
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 (Note 9) | 9,604 | 9,604 | |||||||||||||||||||||||||||
Settlement of restricted stock units | 769,701 | — | 0 | ||||||||||||||||||||||||||
Repurchase of common units, stock options 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 | |||||||||||||||||||||||||
Net income | 36,193 | 6,687 | 42,880 | ||||||||||||||||||||||||||
Issuance of share-based compensation awards | 645 | 645 | |||||||||||||||||||||||||||
Non-cash amortization of share-based compensation (Note 9) | 11,193 | 11,193 | |||||||||||||||||||||||||||
Settlement of restricted stock units | 3,840 | 0 | 0 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (4,692) | (4,692) | |||||||||||||||||||||||||||
Distributions declared per common unit ($0.500 per unit) (Note 17) | (59,453) | (59,453) | |||||||||||||||||||||||||||
BALANCE AS OF JUNE 30, 2021 | 117,604,784 | $ | 5,500,753 | $ | 192,712 | $ | 5,693,465 | ||||||||||||||||||||||
Partners’ Capital | Noncontrolling Interests in Consolidated Property Partnerships and Subsidiaries | |||||||||||||
Number of Common Units | Common Units | Total Capital | ||||||||||||
BALANCE AS OF DECEMBER 31, 2019 | 108,039,574 | $ | 4,369,758 | $ | 201,100 | $ | 4,570,858 | |||||||
Net income | 40,389 | 5,029 | 45,418 | |||||||||||
Issuance of common units (Note 4) | 8,897,110 | 721,794 | 721,794 | |||||||||||
Issuance of share-based compensation awards | 1,720 | 1,720 | ||||||||||||
Non-cash amortization of share-based compensation (Note 7) | 8,653 | 8,653 | ||||||||||||
Settlement of restricted stock units | 269,972 | — | — | |||||||||||
Repurchase of common units, stock options and restricted stock units | (117,445 | ) | (9,799 | ) | (9,799 | ) | ||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (2,617 | ) | (2,617 | ) | ||||||||||
Distributions declared per common unit ($0.485 per unit) | (58,512 | ) | (58,512 | ) | ||||||||||
BALANCE AS OF MARCH 31, 2020 | 117,089,211 | 5,074,003 | 203,512 | 5,277,515 | ||||||||||
Net income | 19,838 | 4,514 | 24,352 | |||||||||||
Issuance of common units | — | (45 | ) | (45 | ) | |||||||||
Issuance of share-based compensation awards | 805 | 805 | ||||||||||||
Non-cash amortization of share-based compensation (Note 7) | 13,576 | 13,576 | ||||||||||||
Settlement of restricted stock units | 33,581 | — | — | |||||||||||
Repurchase of common units, stock options and restricted stock units | (11,668 | ) | (735 | ) | (735 | ) | ||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (4,281 | ) | (4,281 | ) | ||||||||||
Distributions declared per common unit ($0.485 per unit) | (57,598 | ) | (57,598 | ) | ||||||||||
BALANCE AS OF JUNE 30, 2020 | 117,111,124 | $ | 5,049,844 | $ | 203,745 | $ | 5,253,589 | |||||||
Partners’ Capital | Noncontrolling Interests in Consolidated Property Partnerships and Subsidiaries | ||||||||||||||||||||||
Number of Common Units | Common Units | Total Capital | |||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2019 | 108,039,574 | $ | 4,369,758 | $ | 201,100 | $ | 4,570,858 | ||||||||||||||||
Net income | 40,389 | 5,029 | 45,418 | ||||||||||||||||||||
Issuance of common units | 8,897,110 | 721,794 | 721,794 | ||||||||||||||||||||
Issuance of share-based compensation awards | 1,720 | 1,720 | |||||||||||||||||||||
Non-cash amortization of share-based compensation | 8,653 | 8,653 | |||||||||||||||||||||
Settlement of restricted stock units | 269,972 | — | 0 | ||||||||||||||||||||
Repurchase of common units, stock options and restricted stock units | (117,445) | (9,799) | (9,799) | ||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (2,617) | (2,617) | |||||||||||||||||||||
Distributions declared per common unit ($0.485 per unit) | (58,512) | (58,512) | |||||||||||||||||||||
BALANCE AS OF MARCH 31, 2020 | 117,089,211 | 5,074,003 | 203,512 | 5,277,515 | |||||||||||||||||||
Net income | 19,838 | 4,514 | 24,352 | ||||||||||||||||||||
Issuance of common units | 0 | (45) | (45) | ||||||||||||||||||||
Issuance of share-based compensation awards | 805 | 805 | |||||||||||||||||||||
Non-cash amortization of share-based compensation | 13,576 | 13,576 | |||||||||||||||||||||
Settlement of restricted stock units | 33,581 | — | 0 | ||||||||||||||||||||
Repurchase and cancellation of common units, stock options, and restricted stock units | (11,668) | (735) | (735) | ||||||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (4,281) | (4,281) | |||||||||||||||||||||
Distributions declared per common unit ($0.485 per unit) | (57,598) | (57,598) | |||||||||||||||||||||
BALANCE AS OF JUNE 30, 2020 | 117,111,124 | $ | 5,049,844 | $ | 203,745 | $ | 5,253,589 | ||||||||||||||||
Partners’ Capital | Noncontrolling Interests in Consolidated Property Partnerships and Subsidiaries | |||||||||||||
Number of Common Units | Common Units | Total Capital | ||||||||||||
BALANCE AS OF DECEMBER 31, 2018 | 102,772,275 | $ | 4,003,700 | $ | 197,561 | $ | 4,201,261 | |||||||
Net income | 37,508 | 4,286 | 41,794 | |||||||||||
Opening adjustment to Partners’ Capital upon adoption of ASC 842 | (3,146 | ) | (3,146 | ) | ||||||||||
Issuance of share-based compensation awards | 2,210 | 2,210 | ||||||||||||
Non-cash amortization of share-based compensation | 8,817 | 8,817 | ||||||||||||
Settlement of restricted stock units | 393,240 | — | — | |||||||||||
Repurchase of common units, stock options and restricted stock units | (175,204 | ) | (12,130 | ) | (12,130 | ) | ||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (6,309 | ) | (6,309 | ) | ||||||||||
Distributions declared per common unit ($0.455 per unit) | (49,315 | ) | (49,315 | ) | ||||||||||
BALANCE AS OF MARCH 31, 2019 | 102,990,311 | 3,987,644 | 195,538 | 4,183,182 | ||||||||||
Net income | 42,901 | 4,314 | 47,215 | |||||||||||
Issuance of share-based compensation awards | 820 | 820 | ||||||||||||
Non-cash amortization of share-based compensation | 8,732 | 8,732 | ||||||||||||
Exercise of stock options | 1,500 | 64 | 64 | |||||||||||
Settlement of restricted stock units | 16,270 | — | — | |||||||||||
Repurchase and cancellation of common units, stock options, and restricted stock units | (12,759 | ) | (793 | ) | (793 | ) | ||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (1,487 | ) | (1,487 | ) | ||||||||||
Distributions declared per common unit ($0.485 per unit) | (50,830 | ) | (50,830 | ) | ||||||||||
BALANCE AS OF JUNE 30, 2019 | 102,995,322 | $ | 3,988,538 | $ | 198,365 | $ | 4,186,903 |
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net income | $ | 69,770 | $ | 89,009 | Net income | $ | 550,291 | $ | 69,770 | |||||||||
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 | 148,419 | 131,982 | Depreciation and amortization of real estate assets and leasing costs | 146,468 | 148,419 | |||||||||||||
Depreciation of non-real estate furniture, fixtures and equipment | 6,036 | 2,405 | Depreciation of non-real estate furniture, fixtures and equipment | 3,053 | 6,036 | |||||||||||||
Revenue reversals (recoveries) for doubtful accounts (Note 8) | 12,381 | (3,091 | ) | |||||||||||||||
Revenue reversals for doubtful accounts, net (Note 10) | Revenue reversals for doubtful accounts, net (Note 10) | 746 | 12,381 | |||||||||||||||
Non-cash amortization of share-based compensation awards | 18,311 | 14,082 | Non-cash amortization of share-based compensation awards | 17,415 | 18,311 | |||||||||||||
Non-cash amortization of deferred financing costs and debt discounts and premiums | 1,076 | 717 | ||||||||||||||||
Non-cash amortization of deferred financing costs and debt discounts | Non-cash amortization of deferred financing costs and debt discounts | 1,590 | 1,076 | |||||||||||||||
Non-cash amortization of net below market rents | (4,500 | ) | (4,415 | ) | Non-cash amortization of net below market rents | (2,194) | (4,500) | |||||||||||
Gain on sale of depreciable operating properties | — | (7,169 | ) | |||||||||||||||
Gain on sale of depreciable operating property (Note 3) | Gain on sale of depreciable operating property (Note 3) | (457,831) | 0 | |||||||||||||||
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (8,793 | ) | (8,181 | ) | Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (8,915) | (8,793) | |||||||||||
Straight-line rents | (33,514 | ) | (29,937 | ) | Straight-line rents | (31,029) | (33,514) | |||||||||||
Amortization of right of use ground lease assets | 408 | 291 | Amortization of right of use ground lease assets | 424 | 408 | |||||||||||||
Net change in other operating assets | 13,991 | (15,540 | ) | Net change in other operating assets | (3,622) | 13,991 | ||||||||||||
Net change in other operating liabilities | 437 | (4,493 | ) | Net change in other operating liabilities | 70 | 437 | ||||||||||||
Net cash provided by operating activities | 224,022 | 165,660 | Net cash provided by operating activities | 216,466 | 224,022 | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Expenditures for development properties and undeveloped land | (293,711 | ) | (372,750 | ) | Expenditures for development properties and undeveloped land | (263,227) | (293,711) | |||||||||||
Expenditures for operating properties and other capital assets | (80,630 | ) | (61,557 | ) | Expenditures for operating properties and other capital assets | (63,903) | (80,630) | |||||||||||
Net proceeds received from dispositions | — | 17,271 | ||||||||||||||||
Net cash used in investing activities | (374,341 | ) | (417,036 | ) | ||||||||||||||
Expenditures for acquisition of development properties and undeveloped land (Note 2) | Expenditures for acquisition of development properties and undeveloped land (Note 2) | (586,927) | 0 | |||||||||||||||
Net proceeds received from dispositions (Note 3) | Net proceeds received from dispositions (Note 3) | 1,013,359 | 0 | |||||||||||||||
Net increase in acquisition-related deposits | Net increase in acquisition-related deposits | (4,000) | 0 | |||||||||||||||
Net cash provided by (used in) investing activities | Net cash provided by (used in) investing activities | 95,302 | (374,341) | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Net proceeds from issuance of common units (Note 4) | 721,749 | — | ||||||||||||||||
Proceeds from the issuance of unsecured debt (Note 3) | 350,000 | — | ||||||||||||||||
Borrowings on unsecured revolving credit facility (Note 3) | 190,000 | 425,000 | ||||||||||||||||
Repayments on unsecured revolving credit facility (Note 3) | (435,000 | ) | (95,000 | ) | ||||||||||||||
Principal payments and repayments of secured debt (Note 3) | (2,543 | ) | (75,384 | ) | ||||||||||||||
Financing costs | (2,283 | ) | (1,335 | ) | ||||||||||||||
Principal payments and repayments of secured debt | Principal payments and repayments of secured debt | (2,645) | (2,543) | |||||||||||||||
Financing costs (Note 5) | Financing costs (Note 5) | (7,569) | (2,283) | |||||||||||||||
Repurchase of common units and restricted stock units | (10,534 | ) | (12,618 | ) | Repurchase of common units and restricted stock units | (21,137) | (10,534) | |||||||||||
Proceeds from exercise of stock options | — | 64 | ||||||||||||||||
Distributions to noncontrolling interests in consolidated property partnerships | (6,915 | ) | (7,812 | ) | Distributions to noncontrolling interests in consolidated property partnerships | (16,389) | (6,915) | |||||||||||
Distributions paid to common unitholders | (109,187 | ) | (93,858 | ) | Distributions paid to common unitholders | (117,394) | (109,187) | |||||||||||
Net cash provided by financing activities | 695,287 | 139,057 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 544,968 | (112,319 | ) | |||||||||||||||
Net proceeds from issuance of common units | Net proceeds from issuance of common units | 0 | 721,749 | |||||||||||||||
Proceeds from the issuance of unsecured debt (Note 5) | Proceeds from the issuance of unsecured debt (Note 5) | 0 | 350,000 | |||||||||||||||
Borrowings on unsecured revolving credit facility | Borrowings on unsecured revolving credit facility | 0 | 190,000 | |||||||||||||||
Repayments on unsecured revolving credit facility | Repayments on unsecured revolving credit facility | 0 | (435,000) | |||||||||||||||
Net cash (used in) provided by financing activities | Net cash (used in) provided by financing activities | (165,134) | 695,287 | |||||||||||||||
Net increase in cash and cash equivalents and restricted cash | Net increase in cash and cash equivalents and restricted cash | 146,634 | 544,968 | |||||||||||||||
Cash and cash equivalents and restricted cash, beginning of period | 76,344 | 171,034 | Cash and cash equivalents and restricted cash, beginning of period | 823,130 | 76,344 | |||||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 621,312 | $ | 58,715 | Cash and cash equivalents and restricted cash, end of period | $ | 969,764 | $ | 621,312 |
Number of Buildings | Rentable Square Feet | Number of Tenants | Percentage Occupied (1) | Percentage Leased | |||||||||||||||||||||||||
Stabilized Office Properties (2) | 118 | 14,151,674 | 427 | 91.8 | % | 93.6 | % |
Number of Buildings | Rentable Square Feet | Number of Tenants | Percentage Occupied | Percentage Leased | ||||||||||
Stabilized Office Properties (1) | 114 | 14,327,872 | 473 | 92.3 | % | 96.0 | % |
Number of Projects | Number of Units | 2021 Average Occupancy | |||||||||||||||
Stabilized Residential Properties | 3 | 1,001 | 70.6 | % |
Number of Buildings | Number of Units | 2020 Average Occupancy | ||||||
Stabilized Residential Property | 1 | 200 | 89.3 | % |
Number of Properties/Projects | Estimated Rentable Square Feet (1) / Units | |||
In-process development projects - tenant improvement | 3 | 1,275,000 | ||
In-process development projects - under construction (2) | 5 | 1,016,000 | ||
Completed residential development project (3) | 2 | 462 units |
Number of Properties/Projects | Estimated Rentable Square Feet (1) | ||||||||||
In-process development projects - tenant improvement (2) | 4 | 2,220,000 | |||||||||
In-process development projects - under construction | 2 | 1,110,000 | |||||||||
Property | Date of Acquisition | Submarket | Purchase Price (in millions) (1) | |||||||||||||||||
2045 Pacific Highway, San Diego, CA (2) | June 22, 2021 | Little Italy | $ | 42.0 | ||||||||||||||||
200 W. 6th Street, Austin, TX (3) | June 23, 2021 | Austin CBD | 580.2 | |||||||||||||||||
Total | $ | 622.2 |
Property | Month of Disposition | Number of Buildings | Rentable Square Feet | Sales Price (in billions) (1) | ||||||||||||||||||||||
1800 Owens Street, San Francisco, CA (The Exchange on 16th) | March | 1 | 750,370 | $ | 1.08 | |||||||||||||||||||||
June 30, 2021 | December 31, 2020 | ||||||||||
(in thousands) | |||||||||||
Furniture, fixtures and other long-lived assets, net | $ | 40,679 | $ | 43,367 | |||||||
Prepaid expenses, acquisition deposits and other assets, net (1) | 26,815 | 10,193 | |||||||||
Total prepaid expenses and other assets, net | $ | 67,494 | $ | 53,560 |
June 30, 2020 | December 31, 2019 | ||||||
(in thousands) | |||||||
Furniture, fixtures and other long-lived assets, net | $ | 53,060 | $ | 35,286 | |||
Prepaid expenses | 15,318 | 18,724 | |||||
Note receivable (1) | — | 1,651 | |||||
Total prepaid expenses and other assets, net | $ | 68,378 | $ | 55,661 |
June 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||
Outstanding borrowings | $ | — | $ | 245,000 | Outstanding borrowings | $ | 0 | $ | 0 | |||||||||
Remaining borrowing capacity | 750,000 | 505,000 | Remaining borrowing capacity | 1,100,000 | 750,000 | |||||||||||||
Total borrowing capacity (1) | $ | 750,000 | $ | 750,000 | Total borrowing capacity (1) | $ | 1,100,000 | $ | 750,000 | |||||||||
Interest rate (2) | 1.16 | % | 2.76 | % | Interest rate (2) | 1.00 | % | 1.14 | % | |||||||||
Facility fee-annual rate (3) | 0.200% | Facility fee-annual rate (3) | 0.200% | |||||||||||||||
Maturity date | July 2022 | Maturity date | July 2025 | July 2022 |
(1)We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $500.0 million and $600.0 million as of June 30, 2021 and December 31, 2020, respectively, under an accordion feature under the terms of the unsecured revolving credit facility. (2)Our unsecured revolving credit facility interest rate was calculated based on the contractual rate of LIBOR plus 0.900% and LIBOR plus 1.000% as of June 30, 2021 and December 31, 2020, respectively. (3)Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of June 30, 2021 and December 31, 2020, $8.3 millionand $2.1 million of unamortized deferred financing costs, respectively, which are included in prepaid expenses and other assets, net on our consolidated balance sheets, remained to be amortized through the respective maturity dates presented of our unsecured revolving credit facility. |
June 30, 2020 | December 31, 2019 | ||||||
(in thousands) | |||||||
Outstanding borrowings | $ | 150,000 | $ | 150,000 | |||
Remaining borrowing capacity | — | — | |||||
Total borrowing capacity (1) | $ | 150,000 | $ | 150,000 | |||
Interest rate (2) | 1.28 | % | 2.85 | % | |||
Undrawn facility fee-annual rate | 0.200% | ||||||
Maturity date | July 2022 |
Year | (in thousands) | Year | (in thousands) | |||||
Remaining 2020 | $ | 2,594 | ||||||
2021 | 5,342 | |||||||
Remaining 2021 | Remaining 2021 | $ | 2,698 | |||||
2022 | 155,554 | 2022 | 5,554 | |||||
2023 | 305,775 | 2023 | 305,775 | |||||
2024 | 431,006 | 2024 | 431,006 | |||||
2025 | 406,245 | 2025 | 406,246 | |||||
2026 | 2026 | 401,316 | ||||||
Thereafter | 2,375,442 | Thereafter | 2,399,125 | |||||
Total aggregate principal value (1) | $ | 3,681,958 | Total aggregate principal value (1) | $ | 3,951,720 |
(1) Includes gross principal balance of outstanding debt before the effect of the following at June 30, 2021: $20.8 million of unamortized deferred financing costs for the unsecured senior notes and secured debt and $7.7 million of unamortized discounts for the unsecured senior notes. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Gross interest expense | $ | 39,463 | $ | 36,400 | $ | 78,705 | $ | 72,262 | |||||||||||||||
Capitalized interest and deferred financing costs | (18,073) | (20,516) | (34,981) | (41,934) | |||||||||||||||||||
Interest expense | $ | 21,390 | $ | 15,884 | $ | 43,724 | $ | 30,328 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Gross interest expense | $ | 36,400 | $ | 32,607 | $ | 72,262 | $ | 63,287 | |||||||
Capitalized interest and deferred financing costs | (20,516 | ) | (20,880 | ) | (41,934 | ) | (40,317 | ) | |||||||
Interest expense | $ | 15,884 | $ | 11,727 | $ | 30,328 | $ | 22,970 |
Six Months Ended June 30, 2020 | |||
(in millions, except share and per share data) | |||
Shares of common stock settled during the period | 3,147,110 | ||
Weighted average price per share of common stock | $ | 80.08 | |
Aggregate gross proceeds | $ | 252.0 | |
Aggregate net proceeds after selling commissions | $ | 247.3 |
June 30, 2021 | December 31, 2020 | June 30, 2020 | |||||||||||||||
Company owned common units in the Operating Partnership | 116,454,210 | 116,035,827 | 115,176,538 | ||||||||||||||
Company owned general partnership interest | 99.0 | % | 99.0 | % | 98.3 | % | |||||||||||
Noncontrolling common units of the Operating Partnership | 1,150,574 | 1,150,574 | 1,934,586 | ||||||||||||||
Ownership interest of noncontrolling interest | 1.0 | % | 1.0 | % | 1.7 | % |
June 30, 2020 | December 31, 2019 | June 30, 2019 | ||||||
Company owned common units in the Operating Partnership | 115,176,538 | 106,016,287 | 100,972,035 | |||||
Company owned general partnership interest | 98.3 | % | 98.1 | % | 98.0 | % | ||
Noncontrolling common units of the Operating Partnership | 1,934,586 | 2,023,287 | 2,023,287 | |||||
Ownership interest of noncontrolling interest | 1.7 | % | 1.9 | % | 2.0 | % |
Fair Value Assumptions | |||||
Valuation date | |||||
Expected share price volatility | |||||
Risk-free interest rate | |||||
Fair value per share on valuation date (1) | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Fixed lease payments | $ | 197,846 | $ | 194,486 | $ | 402,062 | $ | 387,961 | |||||||||||||||
Variable lease payments | 26,339 | 29,764 | 57,814 | 61,409 | |||||||||||||||||||
Net collectability recoveries (reversals) (1) | 288 | (5,894) | (747) | (12,381) | |||||||||||||||||||
Total rental income | $ | 224,473 | $ | 218,356 | $ | 459,129 | $ | 436,989 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Fixed lease payments | $ | 194,486 | $ | 173,230 | $ | 387,961 | $ | 342,180 | |||||||
Variable lease payments | 29,764 | 24,616 | 61,409 | 52,184 | |||||||||||
Collectability (reversals) recoveries | (5,894 | ) | (217 | ) | (12,381 | ) | 2,647 | ||||||||
Total rental income | $ | 218,356 | $ | 197,629 | $ | 436,989 | $ | 397,011 |
Year Ending | (in thousands) | ||||
Remaining 2021 | $ | 352,227 | |||
2022 | 782,849 | ||||
2023 | 768,461 | ||||
2024 | 728,204 | ||||
2025 | 690,384 | ||||
2026 | 635,807 | ||||
Thereafter | 2,509,266 | ||||
Total (1) | $ | 6,467,198 |
Year Ending | (in thousands) | ||
Remaining 2020 | $ | 348,479 | |
2021 | 727,344 | ||
2022 | 802,787 | ||
2023 | 788,673 | ||
2024 | 746,047 | ||
2025 | 714,321 | ||
Thereafter | 3,420,018 | ||
Total (1) | $ | 7,547,669 |
Property | Contractual Expiration Date (1) | ||||
601 108th Ave NE, Bellevue, WA(2) | November 2093 | ||||
701, 801 and 837 N. 34th Street, Seattle, WA | December 2041 | ||||
1701 Page Mill Road and 3150 Porter Drive, Palo Alto, CA | December 2067 | ||||
Kilroy Airport Center Phases I, II, and III, Long Beach, CA | July 2084 | ||||
3243 S. La Cienega Boulevard, Los Angeles, CA | October 2106 | ||||
200 W. 6th St. Austin, TX (4) | December 2112 |
Year Ending | (in thousands) | Year Ending | (in thousands) | |||||
Remaining 2020 | $ | 2,821 | ||||||
2021 | 5,641 | |||||||
Remaining 2021 | Remaining 2021 | $ | 3,699 | |||||
2022 | 5,642 | 2022 | 7,435 | |||||
2023 | 5,662 | 2023 | 7,489 | |||||
2024 | 5,662 | 2024 | 7,525 | |||||
2025 | 5,662 | 2025 | 7,561 | |||||
2026 | 2026 | 7,597 | ||||||
Thereafter | 280,723 | Thereafter | 440,411 | |||||
Total undiscounted cash flows (1)(2)(3)(4)(5)(6) | 311,813 | |||||||
Total undiscounted cash flows (1)(2)(3)(4)(5)(6)(7) | Total undiscounted cash flows (1)(2)(3)(4)(5)(6)(7) | 481,717 | ||||||
Present value discount | (213,720 | ) | Present value discount | (337,832) | ||||
Ground lease liabilities | $ | 98,093 | Ground lease liabilities | $ | 143,885 |
Fair Value (Level 1) (1) | Fair Value (Level 1) (1) | |||||||||||||||||
June 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||
Description | (in thousands) | Description | (in thousands) | |||||||||||||||
Marketable securities (2) | $ | 23,175 | $ | 27,098 | Marketable securities (2) | $ | 25,885 | $ | 27,481 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Description | (in thousands) | (in thousands) | |||||||||||||||||||||
Net gain (loss) on marketable securities | $ | 1,261 | $ | 2,662 | $ | 2,565 | $ | (564) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Description | (in thousands) | (in thousands) | |||||||||||||
Net gain (loss) on marketable securities | $ | 2,662 | $ | 544 | $ | (564 | ) | $ | 2,225 |
June 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value (1) | Carrying Value | Fair Value (1) | Carrying Value | Fair Value (1) | Carrying Value | Fair Value (1) | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||
Secured debt, net | $ | 256,113 | $ | 269,707 | $ | 258,593 | $ | 272,997 | Secured debt, net | $ | 251,000 | $ | 278,882 | $ | 253,582 | $ | 282,559 | |||||||||||||||||||||
Unsecured debt, net | $ | 3,399,105 | $ | 3,591,247 | $ | 3,049,185 | $ | 3,252,217 | Unsecured debt, net | $ | 3,672,152 | $ | 4,014,791 | $ | 3,670,099 | $ | 4,089,339 | |||||||||||||||||||||
Unsecured line of credit | $ | — | $ | — | $ | 245,000 | $ | 245,195 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||
Numerator: | |||||||||||||||
Net income available to common stockholders | $ | 19,618 | $ | 42,194 | $ | 59,435 | $ | 79,097 | |||||||
Allocation to participating securities (1) | (542 | ) | (543 | ) | (1,085 | ) | (1,052 | ) | |||||||
Numerator for basic and diluted net income available to common stockholders | $ | 19,076 | $ | 41,651 | $ | 58,350 | $ | 78,045 | |||||||
Denominator: | |||||||||||||||
Basic weighted average vested shares outstanding | 115,084,897 | 100,972,355 | 110,980,066 | 100,937,069 | |||||||||||
Effect of dilutive securities | 454,828 | 837,186 | 484,581 | 681,884 | |||||||||||
Diluted weighted average vested shares and common stock equivalents outstanding | 115,539,725 | 101,809,541 | 111,464,647 | 101,618,953 | |||||||||||
Basic earnings per share: | |||||||||||||||
Net income available to common stockholders per share | $ | 0.17 | $ | 0.41 | $ | 0.53 | $ | 0.77 | |||||||
Diluted earnings per share: | |||||||||||||||
Net income available to common stockholders per share | $ | 0.17 | $ | 0.41 | $ | 0.52 | $ | 0.77 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income available to common stockholders | $ | 35,839 | $ | 19,618 | $ | 533,470 | $ | 59,435 | |||||||||||||||
Allocation to participating securities (1) | (371) | (542) | (736) | (1,085) | |||||||||||||||||||
Numerator for basic and diluted net income available to common stockholders | $ | 35,468 | $ | 19,076 | $ | 532,734 | $ | 58,350 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic weighted average vested shares outstanding | 116,451,931 | 115,084,897 | 116,398,450 | 110,980,066 | |||||||||||||||||||
Effect of dilutive securities | 465,532 | 454,828 | 461,295 | 484,581 | |||||||||||||||||||
Diluted weighted average vested shares and common stock equivalents outstanding | 116,917,463 | 115,539,725 | 116,859,745 | 111,464,647 | |||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||
Net income available to common stockholders per share | $ | 0.30 | $ | 0.17 | $ | 4.58 | $ | 0.53 | |||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||
Net income available to common stockholders per share | $ | 0.30 | $ | 0.17 | $ | 4.56 | $ | 0.52 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands, except unit and per unit amounts) | |||||||||||||||
Numerator: | |||||||||||||||
Net income available to common unitholders | $ | 19,838 | $ | 42,901 | $ | 60,227 | $ | 80,409 | |||||||
Allocation to participating securities (1) | (542 | ) | (543 | ) | (1,085 | ) | (1,052 | ) | |||||||
Numerator for basic and diluted net income available to common unitholders | $ | 19,296 | $ | 42,358 | $ | 59,142 | $ | 79,357 | |||||||
Denominator: | |||||||||||||||
Basic weighted average vested units outstanding | 117,098,562 | 102,995,642 | 112,997,795 | 102,960,599 | |||||||||||
Effect of dilutive securities | 454,828 | 837,186 | 484,581 | 681,884 | |||||||||||
Diluted weighted average vested units and common unit equivalents outstanding | 117,553,390 | 103,832,828 | 113,482,376 | 103,642,483 | |||||||||||
Basic earnings per unit: | |||||||||||||||
Net income available to common unitholders per unit | $ | 0.16 | $ | 0.41 | $ | 0.52 | $ | 0.77 | |||||||
Diluted earnings per unit: | |||||||||||||||
Net income available to common unitholders per unit | $ | 0.16 | $ | 0.41 | $ | 0.52 | $ | 0.77 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in thousands, except unit and per unit amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income available to common unitholders | $ | 36,193 | $ | 19,838 | $ | 538,710 | $ | 60,227 | |||||||||||||||
Allocation to participating securities (1) | (371) | (542) | (736) | (1,085) | |||||||||||||||||||
Numerator for basic and diluted net income available to common unitholders | $ | 35,822 | $ | 19,296 | $ | 537,974 | $ | 59,142 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic weighted average vested units outstanding | 117,602,505 | 117,098,562 | 117,549,024 | 112,997,795 | |||||||||||||||||||
Effect of dilutive securities | 465,532 | 454,828 | 461,295 | 484,581 | |||||||||||||||||||
Diluted weighted average vested units and common unit equivalents outstanding | 118,068,037 | 117,553,390 | 118,010,319 | 113,482,376 | |||||||||||||||||||
Basic earnings per unit: | |||||||||||||||||||||||
Net income available to common unitholders per unit | $ | 0.30 | $ | 0.16 | $ | 4.58 | $ | 0.52 | |||||||||||||||
Diluted earnings per unit: | |||||||||||||||||||||||
Net income available to common unitholders per unit | $ | 0.30 | $ | 0.16 | $ | 4.56 | $ | 0.52 |
(1)Participating securities include |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||||||
Cash paid for interest, net of capitalized interest of $33,244 and $39,952 as of June 30, 2021 and 2020, respectively | $ | 41,520 | $ | 25,494 | |||||||
Cash paid for amounts included in the measurement of ground lease liabilities | $ | 2,887 | $ | 2,905 | |||||||
NON-CASH INVESTING TRANSACTIONS: | |||||||||||
Accrual for expenditures for operating properties and development properties | $ | 85,490 | $ | 131,892 | |||||||
Tenant improvements funded directly by tenants | $ | 4,265 | $ | 7,210 | |||||||
Assumption of accrued liabilities in connection with acquisitions (Notes 2 and 11) | $ | 37,572 | $ | 0 | |||||||
Initial measurement of operating right of use ground lease assets (Notes 2 and 11) | $ | 46,430 | $ | 0 | |||||||
Initial measurement of operating ground lease liabilities (Notes 2 and 11) | $ | 46,430 | $ | 0 | |||||||
NON-CASH FINANCING TRANSACTIONS: | |||||||||||
Accrual of dividends and distributions payable to common stockholders and common unitholders (Note 17) | $ | 59,455 | $ | 57,600 | |||||||
Exchange of common units of the Operating Partnership into shares of the Company’s common stock | $ | 0 | $ | 3,843 | |||||||
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||
Cash paid for interest, net of capitalized interest of $39,952 and $38,780 as of June 30, 2020 and 2019, respectively | $ | 25,494 | $ | 23,009 | |||
Cash paid for amounts included in the measurement of ground lease liabilities | $ | 2,905 | $ | 2,699 | |||
NON-CASH INVESTING TRANSACTIONS: | |||||||
Accrual for expenditures for operating properties and development properties | $ | 131,892 | $ | 129,500 | |||
Tenant improvements funded directly by tenants | $ | 7,210 | $ | 7,017 | |||
Initial measurement of operating right of use ground lease assets | $ | — | $ | 82,938 | |||
Initial measurement of operating ground lease liabilities | $ | — | $ | 87,409 | |||
NON-CASH FINANCING TRANSACTIONS: | |||||||
Accrual of dividends and distributions payable to common stockholders and common unitholders (Note 15) | $ | 57,600 | $ | 50,800 | |||
Exchange of common units of the Operating Partnership into shares of the Company’s common stock | $ | 3,843 | $ | 78 |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
(in thousands) | |||||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||||||
Cash and cash equivalents at beginning of period | $ | 731,991 | $ | 60,044 | |||||||
Restricted cash at beginning of period | 91,139 | 16,300 | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 823,130 | $ | 76,344 | |||||||
Cash and cash equivalents at end of period | $ | 519,307 | $ | 605,012 | |||||||
Restricted cash at end of period | 450,457 | 16,300 | |||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 969,764 | $ | 621,312 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||
Cash and cash equivalents at beginning of period | $ | 60,044 | $ | 51,604 | |||
Restricted cash at beginning of period | 16,300 | 119,430 | |||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 76,344 | $ | 171,034 | |||
Cash and cash equivalents at end of period | $ | 605,012 | $ | 52,415 | |||
Restricted cash at end of period | 16,300 | 6,300 | |||||
Cash and cash equivalents and restricted cash at end of period | $ | 621,312 | $ | 58,715 |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||||||
Cash paid for interest, net of capitalized interest of $33,244 and $39,952 as of June 30, 2021 and 2020, respectively | $ | 41,520 | $ | 25,494 | |||||||
Cash paid for amounts included in the measurement of ground lease liabilities | $ | 2,887 | $ | 2,905 | |||||||
NON-CASH INVESTING TRANSACTIONS: | |||||||||||
Accrual for expenditures for operating properties and development properties | $ | 85,490 | $ | 131,892 | |||||||
Tenant improvements funded directly by tenants | $ | 4,265 | $ | 7,210 | |||||||
Assumption of accrued liabilities in connection with acquisitions (Notes 2 and 11) | $ | 37,572 | $ | 0 | |||||||
Initial measurement of operating right of use ground lease assets (Notes 2 and 11) | $ | 46,430 | $ | 0 | |||||||
Initial measurement of operating ground lease liabilities (Notes 2 and 11) | $ | 46,430 | $ | 0 | |||||||
NON-CASH FINANCING TRANSACTIONS: | |||||||||||
Accrual of distributions payable to common unitholders (Note 17) | $ | 59,455 | $ | 57,600 | |||||||
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||||||
Cash paid for interest, net of capitalized interest of $39,952 and $38,780 as of June 30, 2020 and 2019, respectively | $ | 25,494 | $ | 23,009 | |||
Cash paid for amounts included in the measurement of ground lease liabilities | $ | 2,905 | $ | 2,699 | |||
NON-CASH INVESTING TRANSACTIONS: | |||||||
Accrual for expenditures for operating properties and development properties | $ | 131,892 | $ | 129,500 | |||
Tenant improvements funded directly by tenants | $ | 7,210 | $ | 7,017 | |||
Initial measurement of operating right of use ground lease assets | $ | — | $ | 82,938 | |||
Initial measurement of operating ground lease liabilities | $ | — | $ | 87,409 | |||
NON-CASH FINANCING TRANSACTIONS: | |||||||
Accrual of distributions payable to common unitholders (Note 15) | $ | 57,600 | $ | 50,800 |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
(in thousands) | |||||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||||||
Cash and cash equivalents at beginning of period | $ | 731,991 | $ | 60,044 | |||||||
Restricted cash at beginning of period | 91,139 | 16,300 | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 823,130 | $ | 76,344 | |||||||
Cash and cash equivalents at end of period | $ | 519,307 | $ | 605,012 | |||||||
Restricted cash at end of period | 450,457 | 16,300 | |||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 969,764 | $ | 621,312 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||
Cash and cash equivalents at beginning of period | $ | 60,044 | $ | 51,604 | |||
Restricted cash at beginning of period | 16,300 | 119,430 | |||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 76,344 | $ | 171,034 | |||
Cash and cash equivalents at end of period | $ | 605,012 | $ | 52,415 | |||
Restricted cash at end of period | 16,300 | 6,300 | |||||
Cash and cash equivalents and restricted cash at end of period | $ | 621,312 | $ | 58,715 |
COVID-19 Modifications (3) | Non-COVID-19 Modifications (4) | |||||||||||||||||||||
Property Type | Gross Rent Billings (1) (in thousands) | Rent Collected (2) | Rent Forgiven (5) | Rent Deferred | Rent Deferred | Rent Outstanding (8) | ||||||||||||||||
Collected (6) | Outstanding (7) | Collected (6) | Outstanding (7) | |||||||||||||||||||
Office | $ | 190,245 | 97.7 | % | — | — | 0.4 | % | — | — | 1.9 | % | ||||||||||
Residential | 4,226 | 88.0 | % | — | — | 7.6 | % | — | — | 4.4 | % | |||||||||||
Retail | 7,521 | 32.3 | % | 3.5 | % | — | 34.5 | % | — | — | 29.7 | % | ||||||||||
Total | $ | 201,992 | 95.1 | % | 0.1 | % | — | 1.8 | % | — | — | 3.0 | % | |||||||||
• |
Future Development Pipeline | Location | Approx. Developable Square Feet (1) | Total Costs as of 6/30/2020 ($ in millions) (2) | Future Development Pipeline | Location | Approx. Developable Square Feet (1) | Total Costs as of 6/30/2021 ($ in millions) (2) | |||||||||||||||||||||
San Diego County | San Diego County | |||||||||||||||||||||||||||
Santa Fe Summit – Phases II and III | 56 Corridor | 600,000 - 650,000 | $ | 81.6 | ||||||||||||||||||||||||
1335 Broadway & 901 Park Boulevard | East Village | TBD | 46.6 | |||||||||||||||||||||||||
Santa Fe Summit – Phases 2 and 3 | Santa Fe Summit – Phases 2 and 3 | 56 Corridor | 600,000 - 650,000 | $ | 83.3 | |||||||||||||||||||||||
2045 Pacific Highway | 2045 Pacific Highway | Little Italy | 275,000 | 47.4 | ||||||||||||||||||||||||
Kilroy East Village | Kilroy East Village | East Village | TBD | 59.7 | ||||||||||||||||||||||||
San Francisco Bay Area | San Francisco Bay Area | |||||||||||||||||||||||||||
Kilroy Oyster Point - Phases II - IV | South San Francisco | 1,750,000 - 1,900,000 | 331.3 | |||||||||||||||||||||||||
Kilroy Oyster Point - Phases 3 and 4 | Kilroy Oyster Point - Phases 3 and 4 | South San Francisco | 875,000 - 1,000,000 | 211.6 | ||||||||||||||||||||||||
Flower Mart | SOMA | 2,300,000 | 418.7 | Flower Mart | SOMA | 2,300,000 | 448.0 | |||||||||||||||||||||
Greater Seattle | Greater Seattle | |||||||||||||||||||||||||||
SIX0 - Office & Residential | Seattle CBD | TBD | 141.8 | SIX0 - Office & Residential | Seattle CBD | TBD | 148.8 | |||||||||||||||||||||
TOTAL: | $ | 1,020.0 | TOTAL: | $ | 998.8 |
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 June 30, 2021 | 10 | 8 | 138,543 | 65,571 | 39.1 | % | $ | 61.73 | $ | 10.43 | 45.2 | % | 24.0 | % | 71 | ||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2021 | 22 | 21 | 594,296 | 206,271 | 40.8 | % | $ | 74.24 | $ | 11.00 | 54.2 | % | 31.5 | % | 81 |
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 June 30, 2020 | 13 | 9 | 111,968 | 233,263 | 50.1 | % | $ | 61.16 | $ | 10.05 | 37.2 | % | 15.4 | % | 73 | ||||||||||||||||
Six Months Ended June 30, 2020 | 23 | 18 | 159,894 | 323,330 | 40.4 | % | $ | 54.49 | $ | 8.38 | 36.4 | % | 16.6 | % | 78 |
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 June 30, 2020 | 5 | 9 | 53,214 | 233,263 | $ | 54.10 | $ | 9.02 | 30.0 | % | 10.7 | % | 72 | |||||||||||||||
Six Months Ended June 30, 2020 | 12 | 18 | 184,875 | 323,330 | $ | 56.72 | $ | 8.62 | 36.9 | % | 18.6 | % | 79 |
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 June 30, 2021 | 10 | 8 | 131,933 | 65,571 | $ | 48.06 | $ | 9.01 | 25.6 | % | 8.7 | % | 64 | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2021 | 19 | 21 | 198,592 | 206,271 | $ | 30.48 | $ | 7.32 | 20.1 | % | 6.7 | % | 50 |
(1)Includes 100% of consolidated property partnerships. (2)First generation leasing includes space where we have made capital expenditures that result in additional revenue generated when the space is re-leased. Second generation leasing includes space where we have made capital expenditures to maintain the current market revenue stream. (3)Represents leasing activity for leases that commenced or were signed during the period, including first and second generation space, net of month-to-month leases. Excludes leasing on new construction. (4)Calculated as the percentage of space either renewed or expanded into by existing tenants or subtenants at lease expiration. (5)Tenant improvements and leasing commissions per square foot exclude tenant-funded tenant improvements. (6)Calculated as the change between GAAP rents for new/renewed leases and the expiring GAAP rents for the same space. Excludes leases for which the space was vacant longer than one year or vacant when the property was acquired. (7)Excludes commenced and executed leases of approximately 55,098 and 16,136 rentable square feet, respectively, for the three months ended June 30, 2021 and commenced and executed leases of approximately 222,835 and 61,638 rentable square feet, respectively, for the six months ended June 30, 2021, for which the space was vacant longer than one year or being leased for the first time. Space vacant for more than one year is excluded from our change in rents calculations to provide a more meaningful market comparison. (8)Calculated as the change between stated rents for new/renewed leases and the expiring stated rents for the same space. Excludes leases for which the space was vacant longer than one year or vacant when the property was acquired. (9)During the three months ended June 30, 2021, 10 new leases totaling 137,438 rentable square feet were signed but not commenced as of June 30, 2021. During the six months ended June 30, 2021, 12 new leases totaling 149,577 rentable square feet were signed but not commenced as of June 30, 2021. |
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 2021 (4) | 33 | 333,304 | 2.6 | % | $ | 14,887 | 2.2 | % | $ | 44.66 | ||||||||||||||||||||||||||||
2022 (4) | 72 | 768,814 | 6.0 | % | 31,827 | 4.7 | % | 41.40 | ||||||||||||||||||||||||||||||
2023 | 76 | 1,196,717 | 9.4 | % | 63,640 | 9.3 | % | 53.18 | ||||||||||||||||||||||||||||||
2024 | 63 | 989,196 | 7.7 | % | 48,365 | 7.1 | % | 48.89 | ||||||||||||||||||||||||||||||
2025 | 56 | 773,736 | 6.0 | % | 38,943 | 5.7 | % | 50.33 | ||||||||||||||||||||||||||||||
2026 | 43 | 1,717,490 | 13.4 | % | 78,698 | 11.5 | % | 45.82 | ||||||||||||||||||||||||||||||
Total | 343 | 5,779,257 | 45.1 | % | $ | 276,360 | 40.5 | % | $ | 47.82 |
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 2020 | 35 | 395,942 | 3.1 | % | $ | 17,080 | 2.5 | % | $ | 43.14 | ||||||||||
2021 | 78 | 764,334 | 5.8 | % | 32,319 | 4.6 | % | 42.28 | ||||||||||||
2022 | 65 | 749,808 | 5.8 | % | 32,351 | 4.7 | % | 43.15 | ||||||||||||
2023 | 81 | 1,299,381 | 10.0 | % | 68,853 | 9.9 | % | 52.99 | ||||||||||||
2024 | 58 | 945,844 | 7.3 | % | 46,338 | 6.6 | % | 48.99 | ||||||||||||
2025 | 53 | 663,871 | 5.1 | % | 32,304 | 4.6 | % | 48.66 | ||||||||||||
Total | 370 | 4,819,180 | 37.1 | % | $ | 229,245 | 32.9 | % | $ | 47.57 |
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) | |||||||||||||||
2020 | Greater Los Angeles | 22 | 243,813 | 1.9 | % | $ | 9,465 | 1.4 | % | $ | 38.82 | |||||||||||
San Diego | 7 | 61,044 | 0.5 | % | 2,340 | 0.3 | % | 38.33 | ||||||||||||||
San Francisco Bay Area | 5 | 68,651 | 0.5 | % | 4,545 | 0.7 | % | 66.20 | ||||||||||||||
Greater Seattle | 1 | 22,434 | 0.2 | % | 730 | 0.1 | % | 32.54 | ||||||||||||||
Total | 35 | 395,942 | 3.1 | % | $ | 17,080 | 2.5 | % | $ | 43.14 | ||||||||||||
2021 | Greater Los Angeles | 49 | 330,964 | 2.5 | % | $ | 13,084 | 1.8 | % | $ | 39.53 | |||||||||||
San Diego | 15 | 187,468 | 1.4 | % | 6,795 | 1.0 | % | 36.25 | ||||||||||||||
San Francisco Bay Area | 10 | 234,125 | 1.8 | % | 11,947 | 1.7 | % | 51.03 | ||||||||||||||
Greater Seattle | 4 | 11,777 | 0.1 | % | 493 | 0.1 | % | 41.86 | ||||||||||||||
Total | 78 | 764,334 | 5.8 | % | $ | 32,319 | 4.6 | % | $ | 42.28 |
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) | |||||||||||||||||||||||||||||||||||||
2021 (4) | Greater Los Angeles | 23 | 143,422 | 1.1 | % | $ | 5,902 | 0.9 | % | $ | 41.15 | |||||||||||||||||||||||||||||||||
San Diego County | 3 | 11,967 | 0.1 | % | 415 | 0.1 | % | 34.68 | ||||||||||||||||||||||||||||||||||||
San Francisco Bay Area | 6 | 176,643 | 1.4 | % | 8,512 | 1.2 | % | 48.19 | ||||||||||||||||||||||||||||||||||||
Greater Seattle | 1 | 1,272 | — | % | 58 | — | % | 45.60 | ||||||||||||||||||||||||||||||||||||
Total | 33 | 333,304 | 2.6 | % | $ | 14,887 | 2.2 | % | $ | 44.66 | ||||||||||||||||||||||||||||||||||
2022 (4) | Greater Los Angeles | 53 | 473,871 | 3.7 | % | $ | 19,973 | 2.9 | % | $ | 42.15 | |||||||||||||||||||||||||||||||||
San Diego County | 10 | 214,463 | 1.7 | % | 7,617 | 1.1 | % | 35.52 | ||||||||||||||||||||||||||||||||||||
San Francisco Bay Area | 5 | 50,108 | 0.4 | % | 3,180 | 0.5 | % | 63.46 | ||||||||||||||||||||||||||||||||||||
Greater Seattle | 4 | 30,372 | 0.2 | % | 1,057 | 0.2 | % | 34.80 | ||||||||||||||||||||||||||||||||||||
Total | 72 | 768,814 | 6.0 | % | $ | 31,827 | 4.7 | % | $ | 41.40 | ||||||||||||||||||||||||||||||||||
Number of Properties/Projects | Estimated Rentable Square Feet (1) / Units | |||
In-process development projects - tenant improvement | 3 | 1,275,000 | ||
In-process development projects - under construction (2) | 5 | 1,016,000 | ||
Completed residential development project (3) | 2 | 462 units |
Number of Properties/Projects | Estimated Rentable Square Feet (1) | ||||||||||
In-process development projects - tenant improvement (2) | 4 | 2,220,000 | |||||||||
In-process development projects - under construction | 2 | 1,110,000 | |||||||||
Number of Buildings | Rentable Square Feet | |||||||||||||||
Total as of June 30, 2020 | Total as of June 30, 2020 | 114 | 14,327,872 | |||||||||||||
Number of Buildings | Rentable Square Feet | |||||||||||||||
Total as of June 30, 2019 | 94 | 13,546,615 | ||||||||||||||
Acquisitions | 19 | 151,908 | ||||||||||||||
Completed development properties placed in-service | 2 | 846,241 | Completed development properties placed in-service | 6 | 613,874 | |||||||||||
Dispositions | (1 | ) | (271,556 | ) | Dispositions | (2) | (837,517) | |||||||||
Remeasurement | — | 54,664 | Remeasurement | — | 47,445 | |||||||||||
Total as of June 30, 2020 (1) | 114 | 14,327,872 | ||||||||||||||
Total as of June 30, 2021 (1) | Total as of June 30, 2021 (1) | 118 | 14,151,674 |
Region | Number of Buildings | Rentable Square Feet | Occupancy at (1) | |||||||||||||||||||||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | ||||||||||||||||||||||||||||||
Greater Los Angeles | 55 | 4,409,591 | 86.7 | % | 87.5 | % | 88.1 | % | ||||||||||||||||||||||||
San Diego County | 24 | 2,410,303 | 91.0 | % | 87.4 | % | 85.2 | % | ||||||||||||||||||||||||
San Francisco Bay Area | 31 | 5,527,722 | 94.7 | % | 94.3 | % | 94.5 | % | ||||||||||||||||||||||||
Greater Seattle | 8 | 1,804,058 | 96.5 | % | 97.8 | % | 94.7 | % | ||||||||||||||||||||||||
Total Stabilized Office Portfolio | 118 | 14,151,674 | 91.8 | % | 91.5 | % | 91.2 | % |
Region | Number of Buildings | Rentable Square Feet | Occupancy at (1) | ||||||||||||
6/30/2020 | 3/31/2020 | 12/31/2019 | |||||||||||||
Greater Los Angeles | 51 | 4,029,919 | 91.2 | % | 94.0 | % | 95.2 | % | |||||||
San Diego County | 22 | 2,146,253 | 87.4 | % | 88.3 | % | 89.7 | % | |||||||
San Francisco Bay Area | 33 | 6,349,910 | 93.7 | % | 94.3 | % | 95.0 | % | |||||||
Greater Seattle | 8 | 1,801,790 | 95.9 | % | 95.5 | % | 97.7 | % | |||||||
Total Stabilized Office Portfolio | 114 | 14,327,872 | 92.3 | % | 93.5 | % | 94.6 | % |
Average Occupancy | Average Occupancy | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
Stabilized Office Portfolio (1) | 92.8 | % | 93.5 | % | 93.2 | % | 93.3 | % | Stabilized Office Portfolio (1) | 91.7 | % | 92.8 | % | 91.6 | % | 93.2 | % | |||||||||||||||||
Same Store Portfolio (2) | 92.5 | % | 93.9 | % | 93.1 | % | 93.6 | % | Same Store Portfolio (2) | 91.4 | % | 92.4 | % | 91.1 | % | 93.0 | % | |||||||||||||||||
Residential Portfolio (3) | 85.0 | % | 76.5 | % | 89.3 | % | 73.4 | % | Residential Portfolio (3) | 71.9 | % | 85.0 | % | 70.6 | % | 89.3 | % |
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 | 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) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dropbox, Inc. | San Francisco Bay Area | $ | 55,998 | 738,081 | 7.9 | % | 5.0 | % | 2033 | ||||||||||||||||||||||||||||||||||||||||||||||
GM Cruise, LLC | San Francisco Bay Area | 36,337 | 374,618 | 5.1 | % | 2.6 | % | 2031 | GM Cruise, LLC | San Francisco Bay Area | $ | 36,337 | 374,618 | 5.2 | % | 2.6 | % | 2031 | |||||||||||||||||||||||||||||||||||||
LinkedIn Corporation / Microsoft Corporation | San Francisco Bay Area | 29,752 | 663,460 | 4.2 | % | 4.5 | % | 2024 / 2026 | LinkedIn Corporation / Microsoft Corporation | San Francisco Bay Area | 29,752 | 663,460 | 4.3 | % | 4.6 | % | 2024 / 2026 | ||||||||||||||||||||||||||||||||||||||
Adobe Systems, Inc. | San Francisco Bay Area / Greater Seattle | 27,897 | 513,111 | 3.9 | % | 3.5 | % | 2027 / 2031 | Adobe Systems, Inc. | San Francisco Bay Area / Greater Seattle | 27,897 | 513,111 | 4.0 | % | 3.5 | % | 2027 / 2031 | ||||||||||||||||||||||||||||||||||||||
salesforce.com, inc. | San Francisco Bay Area | 24,076 | 451,763 | 3.4 | % | 3.1 | % | 2031 / 2032 | salesforce.com, inc. | San Francisco Bay Area | 24,076 | 451,763 | 3.4 | % | 3.1 | % | 2031 / 2032 | ||||||||||||||||||||||||||||||||||||||
DIRECTV, LLC | Greater Los Angeles | 23,152 | 684,411 | 3.3 | % | 4.7 | % | 2027 | |||||||||||||||||||||||||||||||||||||||||||||||
DIRECTV, LLC (3) | DIRECTV, LLC (3) | Greater Los Angeles | 23,152 | 684,411 | 3.3 | % | 4.7 | % | 2027 | ||||||||||||||||||||||||||||||||||||||||||||||
Fortune 50 Publicly-Traded Company | Fortune 50 Publicly-Traded Company | Greater Seattle / San Diego County | 23,059 | 472,427 | 3.3 | % | 3.3 | % | 2032 / 2033 | ||||||||||||||||||||||||||||||||||||||||||||||
Box, Inc. | San Francisco Bay Area | 22,441 | 371,792 | 3.2 | % | 2.5 | % | 2021 / 2028 | Box, Inc. | San Francisco Bay Area | 22,441 | 372,673 | 3.2 | % | 2.6 | % | 2021 / 2028 | ||||||||||||||||||||||||||||||||||||||
Okta, Inc. | San Francisco Bay Area | 18,263 | 218,100 | 2.6 | % | 1.5 | % | 2028 | Okta, Inc. | San Francisco Bay Area | 22,387 | 273,371 | 3.2 | % | 1.9 | % | 2028 | ||||||||||||||||||||||||||||||||||||||
Riot Games, Inc. | Greater Los Angeles | 15,554 | 251,509 | 2.2 | % | 1.7 | % | 2020 / 2023 / 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Synopsys, Inc. | San Francisco Bay Area | 15,492 | 340,913 | 2.2 | % | 2.3 | % | 2030 | |||||||||||||||||||||||||||||||||||||||||||||||
Fortune 50 Publicly-Traded Company (3) | Greater Seattle | 15,355 | 311,983 | 2.2 | % | 2.1 | % | 2033 | |||||||||||||||||||||||||||||||||||||||||||||||
Viacom International, Inc. | Greater Los Angeles | 13,718 | 211,343 | 1.9 | % | 1.4 | % | 2028 | |||||||||||||||||||||||||||||||||||||||||||||||
Netflix, Inc. | Netflix, Inc. | Greater Los Angeles | 21,943 | 362,868 | 3.1 | % | 2.5 | % | 2021 / 2032 | ||||||||||||||||||||||||||||||||||||||||||||||
DoorDash, Inc. | San Francisco Bay Area | 13,531 | 135,137 | 1.9 | % | 0.9 | % | 2032 | DoorDash, Inc. | San Francisco Bay Area | 18,650 | 184,968 | 2.7 | % | 1.3 | % | 2032 | ||||||||||||||||||||||||||||||||||||||
Amazon.com | Greater Seattle | 12,397 | 277,399 | 1.7 | % | 1.9 | % | 2030 | Amazon.com | Greater Seattle | 16,923 | 405,278 | 2.4 | % | 2.8 | % | 2023 / 2029 / 2030 | ||||||||||||||||||||||||||||||||||||||
Nektar Therapeutics, Inc. | San Francisco Bay Area | 12,297 | 135,350 | 1.7 | % | 0.9 | % | 2030 | |||||||||||||||||||||||||||||||||||||||||||||||
Synopsys, Inc. | Synopsys, Inc. | San Francisco Bay Area | 15,492 | 342,891 | 2.2 | % | 2.4 | % | 2030 | ||||||||||||||||||||||||||||||||||||||||||||||
Riot Games, Inc. | Riot Games, Inc. | Greater Los Angeles | 15,152 | 243,051 | 2.2 | % | 1.7 | % | 2023 / 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
Neurocrine Biosciences, Inc. | Neurocrine Biosciences, Inc. | San Diego County | 13,914 | 254,578 | 2.0 | % | 1.8 | % | 2024 / 2031 | ||||||||||||||||||||||||||||||||||||||||||||||
Viacom International, Inc. | Viacom International, Inc. | Greater Los Angeles | 13,718 | 211,343 | 2.0 | % | 1.5 | % | 2028 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 336,260 | 5,678,970 | 47.4 | % | 38.6 | % | Total | $ | 324,893 | 5,810,811 | 46.5 | % | 40.3 | % |
Group | # of Buildings | Rentable Square Feet | ||||||||||||
Same Store Properties | 111 | 13,441,929 | ||||||||||||
Stabilized Development Properties (1) | 7 | 709,745 | ||||||||||||
Total Stabilized Portfolio | 118 | 14,151,674 |
Group | # of Buildings | Rentable Square Feet | ||||
Same Store Properties | 92 | 12,935,383 | ||||
Stabilized Development Properties | 3 | 1,240,581 | ||||
Acquisition Properties | 19 | 151,908 | ||||
Total Stabilized Portfolio | 114 | 14,327,872 |
Three Months Ended June 30, | Dollar Change | Percentage Change | |||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined: | |||||||||||||||||||||||
Net Income Available to Common Stockholders | $ | 35,839 | $ | 19,618 | $ | 16,221 | 82.7 | % | |||||||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 354 | 367 | (13) | (3.5) | % | ||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 6,687 | 4,367 | 2,320 | 53.1 | % | ||||||||||||||||||
Net income | $ | 42,880 | $ | 24,352 | $ | 18,528 | 76.1 | % | |||||||||||||||
Unallocated expense (income): | |||||||||||||||||||||||
General and administrative expenses | 24,507 | 38,597 | (14,090) | (36.5) | % | ||||||||||||||||||
Leasing costs | 883 | 1,330 | (447) | (33.6) | % | ||||||||||||||||||
Depreciation and amortization | 73,589 | 80,085 | (6,496) | (8.1) | % | ||||||||||||||||||
Interest income and other net investment (gain) loss | (1,337) | (2,838) | 1,501 | (52.9) | % | ||||||||||||||||||
Interest expense | 21,390 | 15,884 | 5,506 | 34.7 | % | ||||||||||||||||||
Gain on sale of depreciable operating property | (543) | — | (543) | 100.0 | % | ||||||||||||||||||
Net Operating Income, as defined | $ | 161,369 | $ | 157,410 | $ | 3,959 | 2.5 | % |
Three Months Ended June 30, | Dollar Change | Percentage Change | ||||||||||||
2020 | 2019 | |||||||||||||
($ in thousands) | ||||||||||||||
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined: | ||||||||||||||
Net Income Available to Common Stockholders | $ | 19,618 | $ | 42,194 | $ | (22,576 | ) | (53.5 | )% | |||||
Net income attributable to noncontrolling common units of the Operating Partnership | 367 | 871 | (504 | ) | (57.9 | )% | ||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 4,367 | 4,150 | 217 | 5.2 | % | |||||||||
Net income | $ | 24,352 | $ | 47,215 | $ | (22,863 | ) | (48.4 | )% | |||||
Unallocated expense (income): | ||||||||||||||
General and administrative expenses | 38,597 | 19,857 | 18,740 | 94.4 | % | |||||||||
Leasing costs | 1,330 | 2,650 | (1,320 | ) | (49.8 | )% | ||||||||
Depreciation and amortization | 80,085 | 68,252 | 11,833 | 17.3 | % | |||||||||
Interest income and other net investment gain | (2,838 | ) | (616 | ) | (2,222 | ) | 360.7 | % | ||||||
Interest expense | 15,884 | 11,727 | 4,157 | 35.4 | % | |||||||||
Gains on sales of depreciable operating properties | — | (7,169 | ) | 7,169 | (100.0 | )% | ||||||||
Net Operating Income, as defined | $ | 157,410 | $ | 141,916 | $ | 15,494 | 10.9 | % |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | Develop-ment | Disposition | Total | Same Store | Develop-ment | Disposition | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental income | $ | 201,009 | $ | 24,284 | $ | (820) | $ | 224,473 | $ | 191,136 | $ | 4,956 | $ | 22,264 | $ | 218,356 | |||||||||||||||||||||||||||||||||||||||||||
Other property income | 1,249 | 256 | 5 | 1,510 | 919 | 132 | 16 | 1,067 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 202,258 | 24,540 | (815) | 225,983 | 192,055 | 5,088 | 22,280 | 219,423 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property expenses | 36,141 | 4,260 | 81 | 40,482 | 34,065 | 1,257 | 2,507 | 37,829 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate taxes | 18,927 | 4,094 | (912) | 22,109 | 17,978 | 1,065 | 2,811 | 21,854 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Ground leases | 1,985 | 38 | — | 2,023 | 2,330 | — | — | 2,330 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 57,053 | 8,392 | (831) | 64,614 | 54,373 | 2,322 | 5,318 | 62,013 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 145,205 | $ | 16,148 | $ | 16 | $ | 161,369 | $ | 137,682 | $ | 2,766 | $ | 16,962 | $ | 157,410 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||
Same Store | Develop-ment | Acquisi-tion | Disposi-tion | Total | Same Store | Develop-ment | Acquisi-tion | Disposi-tion | Total | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||
Rental income | $ | 182,323 | $ | 32,962 | $ | 3,071 | $ | — | $ | 218,356 | $ | 185,711 | $ | 9,169 | $ | — | $ | 2,749 | $ | 197,629 | |||||||||||||||||||
Other property income | 922 | 149 | (4 | ) | — | 1,067 | 2,291 | 253 | — | 319 | 2,863 | ||||||||||||||||||||||||||||
Total | 183,245 | 33,111 | 3,067 | — | 219,423 | 188,002 | 9,422 | — | 3,068 | 200,492 | |||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||
Property expenses | 32,936 | 4,649 | 244 | — | 37,829 | 36,154 | 1,609 | — | 773 | 38,536 | |||||||||||||||||||||||||||||
Real estate taxes | 17,214 | 4,120 | 520 | — | 21,854 | 17,067 | 554 | — | 305 | 17,926 | |||||||||||||||||||||||||||||
Ground leases | 2,121 | — | 209 | — | 2,330 | 2,114 | — | — | — | 2,114 | |||||||||||||||||||||||||||||
Total | 52,271 | 8,769 | 973 | — | 62,013 | 55,335 | 2,163 | — | 1,078 | 58,576 | |||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 130,974 | $ | 24,342 | $ | 2,094 | $ | — | $ | 157,410 | $ | 132,667 | $ | 7,259 | $ | — | $ | 1,990 | $ | 141,916 |
Three Months Ended June 30, 2020 as compared to the Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||
Same Store | Development | Acquisition | Disposition | 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 | $ | (3,388 | ) | (1.8 | )% | $ | 23,793 | 259.5 | % | $ | 3,071 | 100.0 | % | $ | (2,749 | ) | (100.0 | )% | $ | 20,727 | 10.5 | % | ||||||||||||
Other property income | (1,369 | ) | (59.8 | )% | (104 | ) | (41.1 | )% | (4 | ) | (100.0 | )% | (319 | ) | (100.0 | )% | (1,796 | ) | (62.7 | )% | ||||||||||||||
Total | (4,757 | ) | (2.5 | )% | 23,689 | 251.4 | % | 3,067 | 100.0 | % | (3,068 | ) | (100.0 | )% | 18,931 | 9.4 | % | |||||||||||||||||
Property and related expenses: | ||||||||||||||||||||||||||||||||||
Property expenses | (3,218 | ) | (8.9 | )% | 3,040 | 188.9 | % | 244 | 100.0 | % | (773 | ) | (100.0 | )% | (707 | ) | (1.8 | )% | ||||||||||||||||
Real estate taxes | 147 | 0.9 | % | 3,566 | 643.7 | % | 520 | 100.0 | % | (305 | ) | (100.0 | )% | 3,928 | 21.9 | % | ||||||||||||||||||
Ground leases | 7 | 0.3 | % | — | — | % | 209 | 100.0 | % | — | — | % | 216 | 10.2 | % | |||||||||||||||||||
Total | (3,064 | ) | (5.5 | )% | 6,606 | 305.4 | % | 973 | 100.0 | % | (1,078 | ) | (100.0 | )% | 3,437 | 5.9 | % | |||||||||||||||||
Net Operating Income, as defined | $ | (1,693 | ) | (1.3 | )% | $ | 17,083 | 235.3 | % | $ | 2,094 | 100.0 | % | $ | (1,990 | ) | (100.0 | )% | $ | 15,494 | 10.9 | % |
Three Months Ended June 30, 2021 as compared to the Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | Development | Disposition | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental income | $ | 9,873 | 5.2 | % | $ | 19,328 | 390.0 | % | $ | (23,084) | (103.7) | % | $ | 6,117 | 2.8 | % | |||||||||||||||||||||||||||||||||||||||||||
Other property income | 330 | 35.9 | % | 124 | 93.9 | % | (11) | (68.8) | % | 443 | 41.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total | 10,203 | 5.3 | % | 19,452 | 382.3 | % | (23,095) | (103.7) | % | 6,560 | 3.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property expenses | 2,076 | 6.1 | % | 3,003 | 238.9 | % | (2,426) | (96.8) | % | 2,653 | 7.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate taxes | 949 | 5.3 | % | 3,029 | 284.4 | % | (3,723) | (132.4) | % | 255 | 1.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Ground leases | (345) | (14.8) | % | 38 | 100.0 | % | — | — | % | (307) | (13.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total | 2,680 | 4.9 | % | 6,070 | 261.4 | % | (6,149) | (115.6) | % | 2,601 | 4.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 7,523 | 5.5 | % | $ | 13,382 | 483.8 | % | $ | (16,946) | (99.9) | % | $ | 3,959 | 2.5 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Dollar Change | Percentage Change | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Gross interest expense | $ | 39,463 | $ | 36,400 | $ | 3,063 | 8.4 | % | |||||||||||||||
Capitalized interest and deferred financing costs | (18,073) | (20,516) | 2,443 | (11.9) | % | ||||||||||||||||||
Interest expense | $ | 21,390 | $ | 15,884 | $ | 5,506 | 34.7 | % |
Three Months Ended June 30, | ||||||||||||||
2020 | 2019 | Dollar Change | Percentage Change | |||||||||||
(in thousands) | ||||||||||||||
Gross interest expense | $ | 36,400 | $ | 32,607 | $ | 3,793 | 11.6 | % | ||||||
Capitalized interest and deferred financing costs | (20,516 | ) | (20,880 | ) | 364 | (1.7 | )% | |||||||
Interest expense | $ | 15,884 | $ | 11,727 | $ | 4,157 | 35.4 | % |
Six Months Ended June 30, | Dollar Change | Percentage Change | |||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined: | |||||||||||||||||||||||
Net Income Available to Common Stockholders | $ | 533,470 | $ | 59,435 | $ | 474,035 | 797.6 | % | |||||||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 5,240 | 1,072 | 4,168 | 388.8 | % | ||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 11,581 | 9,263 | 2,318 | 25.0 | % | ||||||||||||||||||
Net income | $ | 550,291 | $ | 69,770 | $ | 480,521 | 688.7 | % | |||||||||||||||
Unallocated expense (income): | |||||||||||||||||||||||
General and administrative expenses | 46,492 | 57,607 | (11,115) | (19.3) | % | ||||||||||||||||||
Leasing Costs | 1,575 | 2,786 | (1,211) | (43.5) | % | ||||||||||||||||||
Depreciation and amortization | 149,521 | 154,455 | (4,934) | (3.2) | % | ||||||||||||||||||
Interest income and other net investment gain | (2,710) | 290 | (3,000) | (1,034.5) | % | ||||||||||||||||||
Interest expense | 43,724 | 30,328 | 13,396 | 44.2 | % | ||||||||||||||||||
Gains on sales of depreciable operating properties | (457,831) | — | (457,831) | (100.0) | % | ||||||||||||||||||
Net Operating Income, as defined | $ | 331,062 | $ | 315,236 | $ | 15,826 | 5.0 | % |
Six Months Ended June 30, | Dollar Change | Percentage Change | ||||||||||||
2020 | 2019 | |||||||||||||
($ in thousands) | ||||||||||||||
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined: | ||||||||||||||
Net Income Available to Common Stockholders | $ | 59,435 | $ | 79,097 | $ | (19,662 | ) | (24.9 | )% | |||||
Net income attributable to noncontrolling common units of the Operating Partnership | 1,072 | 1,571 | (499 | ) | (31.8 | )% | ||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 9,263 | 8,341 | 922 | 11.1 | % | |||||||||
Net income | $ | 69,770 | $ | 89,009 | $ | (19,239 | ) | (21.6 | )% | |||||
Unallocated expense (income): | ||||||||||||||
General and administrative expenses | 57,607 | 43,198 | 14,409 | 33.4 | % | |||||||||
Leasing Costs | 2,786 | 4,407 | (1,621 | ) | (36.8 | )% | ||||||||
Depreciation and amortization | 154,455 | 134,387 | 20,068 | 14.9 | % | |||||||||
Interest income and other net investment loss (gain) | 290 | (2,444 | ) | 2,734 | (111.9 | )% | ||||||||
Interest expense | 30,328 | 22,970 | 7,358 | 32.0 | % | |||||||||
Gains on sales of depreciable operating properties | — | (7,169 | ) | 7,169 | (100.0 | )% | ||||||||
Net Operating Income, as defined | $ | 315,236 | $ | 284,358 | $ | 30,878 | 10.9 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | Develop-ment | Disposition | Total | Same Store | Develop-ment | Disposition | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental income | $ | 393,778 | $ | 46,118 | $ | 19,233 | $ | 459,129 | $ | 387,406 | $ | 8,372 | $ | 41,211 | $ | 436,989 | |||||||||||||||||||||||||||||||||||||||||||
Other property income | 2,013 | 470 | 17 | 2,500 | 3,183 | 282 | 297 | 3,762 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 395,791 | 46,588 | 19,250 | 461,629 | 390,589 | 8,654 | 41,508 | 440,751 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property expenses | 69,861 | 7,350 | 2,130 | 79,341 | 70,276 | 2,472 | 4,064 | 76,812 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate taxes | 37,749 | 7,788 | 1,838 | 47,375 | 36,784 | 1,973 | 5,299 | 44,056 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Ground leases | 3,813 | 38 | — | 3,851 | 4,647 | — | — | 4,647 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 111,423 | 15,176 | 3,968 | 130,567 | 111,707 | 4,445 | 9,363 | 125,515 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 284,368 | $ | 31,412 | $ | 15,282 | $ | 331,062 | $ | 278,882 | $ | 4,209 | $ | 32,145 | $ | 315,236 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||
Same Store | Develop-ment | Acquisi-tion | Disposi-tion | Total | Same Store | Develop-ment | Acquisi-tion | Disposi-tion | Total | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||
Rental income | $ | 368,737 | $ | 61,390 | $ | 6,862 | $ | — | $ | 436,989 | $ | 374,153 | $ | 17,194 | $ | — | $ | 5,664 | $ | 397,011 | |||||||||||||||||||
Other property income | 3,102 | 581 | 79 | — | 3,762 | 4,002 | 320 | — | 361 | 4,683 | |||||||||||||||||||||||||||||
Total | 371,839 | 61,971 | 6,941 | — | 440,751 | 378,155 | 17,514 | — | 6,025 | 401,694 | |||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||
Property expenses | 67,693 | 8,492 | 627 | — | 76,812 | 72,449 | 2,671 | — | 1,565 | 76,685 | |||||||||||||||||||||||||||||
Real estate taxes | 34,460 | 8,538 | 1,058 | — | 44,056 | 34,177 | 1,766 | — | 622 | 36,565 | |||||||||||||||||||||||||||||
Ground leases | 4,230 | — | 417 | — | 4,647 | 4,086 | — | — | — | 4,086 | |||||||||||||||||||||||||||||
Total | 106,383 | 17,030 | 2,102 | — | 125,515 | 110,712 | 4,437 | — | 2,187 | 117,336 | |||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 265,456 | $ | 44,941 | $ | 4,839 | $ | — | $ | 315,236 | $ | 267,443 | $ | 13,077 | $ | — | $ | 3,838 | $ | 284,358 |
Six Months Ended June 30, 2021 as compared to the Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Same Store | Development | Disposition | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental income | $ | 6,372 | 1.6 | % | $ | 37,746 | 450.9 | % | $ | (21,978) | (53.3) | % | $ | 22,140 | 5.1 | % | |||||||||||||||||||||||||||||||||||||||||||
Other property income | (1,170) | (36.8) | % | 188 | 66.7 | % | (280) | (94.3) | % | (1,262) | (33.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total | 5,202 | 1.3 | % | 37,934 | 438.3 | % | (22,258) | (53.6) | % | 20,878 | 4.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Property and related expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property expenses | (415) | (0.6) | % | 4,878 | 197.3 | % | (1,934) | (47.6) | % | 2,529 | 3.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate taxes | 965 | 2.6 | % | 5,815 | 294.7 | % | (3,461) | (65.3) | % | 3,319 | 7.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Ground leases | (834) | (17.9) | % | 38 | 100.0 | % | — | — | % | (796) | (17.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total | (284) | (0.3) | % | 10,731 | 241.4 | % | (5,395) | (57.6) | % | 5,052 | 4.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income, as defined | $ | 5,486 | 2.0 | % | $ | 27,203 | 646.3 | % | $ | (16,863) | (52.5) | % | $ | 15,826 | 5.0 | % |
Six Months Ended June 30, 2020 as compared to the Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||
Same Store | Development | Acquisition | Disposition | 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 | $ | (5,416 | ) | (1.4 | )% | $ | 44,196 | 257.0 | % | $ | 6,862 | 100.0 | % | $ | (5,664 | ) | (100.0 | )% | $ | 39,978 | 10.1 | % | ||||||||||||
Other property income | (900 | ) | (22.5 | )% | 261 | 81.6 | % | 79 | 100.0 | % | (361 | ) | (100.0 | )% | (921 | ) | (19.7 | )% | ||||||||||||||||
Total | (6,316 | ) | (1.7 | )% | 44,457 | 253.8 | % | 6,941 | 100.0 | % | (6,025 | ) | (100.0 | )% | 39,057 | 9.7 | % | |||||||||||||||||
Property and related expenses: | ||||||||||||||||||||||||||||||||||
Property expenses | (4,756 | ) | (6.6 | )% | 5,821 | 217.9 | % | 627 | 100.0 | % | (1,565 | ) | (100.0 | )% | 127 | 0.2 | % | |||||||||||||||||
Real estate taxes | 283 | 0.8 | % | 6,772 | 383.5 | % | 1,058 | 100.0 | % | (622 | ) | (100.0 | )% | 7,491 | 20.5 | % | ||||||||||||||||||
Ground leases | 144 | 3.5 | % | — | — | % | 417 | 100.0 | % | — | — | % | 561 | 13.7 | % | |||||||||||||||||||
Total | (4,329 | ) | (3.9 | )% | 12,593 | 283.8 | % | 2,102 | 100.0 | % | (2,187 | ) | (100.0 | )% | 8,179 | 7.0 | % | |||||||||||||||||
Net Operating Income, as defined | $ | (1,987 | ) | (0.7 | )% | $ | 31,864 | 243.7 | % | $ | 4,839 | 100.0 | % | $ | (3,838 | ) | (100.0 | )% | $ | 30,878 | 10.9 | % |
Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | Dollar Change | Percentage Change | |||||||||||
(in thousands) | ||||||||||||||
Gross interest expense | $ | 72,262 | $ | 63,287 | $ | 8,975 | 14.2 | % | ||||||
Capitalized interest and deferred financing costs | (41,934 | ) | (40,317 | ) | (1,617 | ) | 4.0 | % | ||||||
Interest expense | $ | 30,328 | $ | 22,970 | $ | 7,358 | 32.0 | % |
Six Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Dollar Change | Percentage Change | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Gross interest expense | $ | 78,705 | $ | 72,262 | $ | 6,443 | 8.9 | % | |||||||||||||||
Capitalized interest and deferred financing costs | (34,981) | (41,934) | 6,953 | (16.6) | % | ||||||||||||||||||
Interest expense | $ | 43,724 | $ | 30,328 | $ | 13,396 | 44.2 | % |
Shares/Units at June 30, 2020 | Aggregate Principal Amount or $ Value Equivalent | % of Total Market Capitalization | Shares/Units at June 30, 2021 | Aggregate Principal Amount or $ Value Equivalent | % of Total Market Capitalization | ||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||
Debt: (1)(2) | Debt: (1)(2) | ||||||||||||||||||||||||
Unsecured Term Loan Facility | $ | 150,000 | 1.4 | % | |||||||||||||||||||||
Unsecured Senior Notes due 2023 | 300,000 | 2.8 | % | Unsecured Senior Notes due 2023 | $ | 300,000 | 2.5 | % | |||||||||||||||||
Unsecured Senior Notes due 2024 | 425,000 | 4.0 | % | Unsecured Senior Notes due 2024 | 425,000 | 3.5 | % | ||||||||||||||||||
Unsecured Senior Notes due 2025 | 400,000 | 3.8 | % | Unsecured Senior Notes due 2025 | 400,000 | 3.3 | % | ||||||||||||||||||
Unsecured Senior Notes Series A & B due 2026 | 250,000 | 2.4 | % | Unsecured Senior Notes Series A & B due 2026 | 250,000 | 2.0 | % | ||||||||||||||||||
Unsecured Senior Notes due 2028 | 400,000 | 3.8 | % | Unsecured Senior Notes due 2028 | 400,000 | 3.3 | % | ||||||||||||||||||
Unsecured Senior Notes due 2029 | 400,000 | 3.8 | % | Unsecured Senior Notes due 2029 | 400,000 | 3.3 | % | ||||||||||||||||||
Unsecured Senior Notes Series A & B due 2027 & 2029 | 250,000 | 2.4 | % | Unsecured Senior Notes Series A & B due 2027 & 2029 | 250,000 | 2.0 | % | ||||||||||||||||||
Unsecured Senior Notes due 2030 | 500,000 | 4.8 | % | Unsecured Senior Notes due 2030 | 500,000 | 4.1 | % | ||||||||||||||||||
Unsecured Senior Notes due 2031 | 350,000 | 3.3 | % | Unsecured Senior Notes due 2031 | 350,000 | 2.9 | % | ||||||||||||||||||
Unsecured Senior Notes due 2032 | Unsecured Senior Notes due 2032 | 425,000 | 3.5 | % | |||||||||||||||||||||
Secured debt | 256,958 | 2.4 | % | Secured debt | 251,720 | 2.1 | % | ||||||||||||||||||
Total debt | $ | 3,681,958 | 34.9 | % | Total debt | $ | 3,951,720 | 32.5 | % | ||||||||||||||||
Equity and Noncontrolling Interests in the Operating Partnership: (3) | Equity and Noncontrolling Interests in the Operating Partnership: (3) | ||||||||||||||||||||||||
Common limited partnership units outstanding (4) | 1,934,586 | $ | 113,560 | 1.1 | % | Common limited partnership units outstanding (4) | 1,150,574 | $ | 80,126 | 0.7 | % | ||||||||||||||
Shares of common stock outstanding | 115,176,538 | 6,760,863 | 64.0 | % | Shares of common stock outstanding | 116,454,210 | 8,109,871 | 66.8 | % | ||||||||||||||||
Total Equity and Noncontrolling Interests in the Operating Partnership | $ | 6,874,423 | 65.1 | % | Total Equity and Noncontrolling Interests in the Operating Partnership | $ | 8,189,997 | 67.5 | % | ||||||||||||||||
Total Market Capitalization | $ | 10,556,381 | 100.0 | % | Total Market Capitalization | $ | 12,141,717 | 100.0 | % |
(1) Represents gross aggregate principal amount due at maturity before the effect of the following at June 30, 2021: $20.8 million of unamortized deferred financing costs on the unsecured senior notes and secured debt and $7.7 million of unamortized discounts for the unsecured senior notes. |
June 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||
Outstanding borrowings | $ | — | $ | 245,000 | Outstanding borrowings | $ | — | $ | — | |||||||||
Remaining borrowing capacity | 750,000 | 505,000 | Remaining borrowing capacity | 1,100,000 | 750,000 | |||||||||||||
Total borrowing capacity (1) | $ | 750,000 | $ | 750,000 | Total borrowing capacity (1) | $ | 1,100,000 | $ | 750,000 | |||||||||
Interest rate (2) | 1.16 | % | 2.76 | % | Interest rate (2) | 1.00 | % | 1.14 | % | |||||||||
Facility fee-annual rate (3) | 0.200% | Facility fee-annual rate (3) | 0.200% | |||||||||||||||
Maturity date | July 2022 | Maturity date | July 2025 | July 2022 |
June 30, 2020 | December 31, 2019 | ||||||
(in thousands) | |||||||
Outstanding borrowings | $ | 150,000 | $ | 150,000 | |||
Remaining borrowing capacity | — | — | |||||
Total borrowing capacity (1) | $ | 150,000 | $ | 150,000 | |||
Interest rate (2) | 1.28 | % | 2.85 | % | |||
Undrawn facility fee-annual rate | 0.200% | ||||||
Maturity date | July 2022 |
Six Months Ended June 30, 2020 | |||
(in millions, except share and per share data) | |||
Shares of common stock settled during the period | 3,147,110 | ||
Weighted average price per share of common stock | $ | 80.08 | |
Aggregate gross proceeds | $ | 252.0 | |
Aggregate net proceeds after selling commissions | $ | 247.3 |
Aggregate Principal Amount Outstanding | |||
(in thousands) | |||
Unsecured Term Loan Facility (1) | $ | 150,000 | |
Unsecured Senior Notes due 2023 | 300,000 | ||
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 | ||
Secured Debt | 256,958 | ||
Total Unsecured and Secured Debt | 3,681,958 | ||
Less: Unamortized Net Discounts and Deferred Financing Costs (2) | (26,740 | ) | |
Total Debt, Net | $ | 3,655,218 |
Aggregate Principal Amount Outstanding | |||||
(in thousands) | |||||
300,000 | |||||
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 | ||||
Secured Debt | 251,720 | ||||
Total Unsecured and | 3,951,720 | ||||
Less: Unamortized Net Discounts and | (28,568) | ||||
Total Debt, Net | $ | 3,923,152 |
Percentage of Total Debt (1) | Weighted Average Interest Rate (1) | ||||||||||||||||||||||
June 30, 2021 (2) | December 31, 2020 | June 30, 2021 (2) | December 31, 2020 | ||||||||||||||||||||
Secured vs. unsecured: | |||||||||||||||||||||||
Unsecured | 93.6 | % | 93.6 | % | 3.8 | % | 3.8 | % | |||||||||||||||
Secured | 6.4 | % | 6.4 | % | 3.9 | % | 3.9 | % | |||||||||||||||
Variable-rate vs. fixed-rate: | |||||||||||||||||||||||
Variable-rate | — | % | — | % | — | % | — | % | |||||||||||||||
Fixed-rate (3) | 100.0 | % | 100.0 | % | 3.8 | % | 3.8 | % | |||||||||||||||
Stated rate (3) | 3.8 | % | 3.8 | % | |||||||||||||||||||
GAAP effective rate (4) | 3.8 | % | 3.8 | % | |||||||||||||||||||
GAAP effective rate including debt issuance costs | 4.0 | % | 4.0 | % |
Percentage of Total Debt (1) | Weighted Average Interest Rate (1) | ||||||||||
June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | ||||||||
Secured vs. unsecured: | |||||||||||
Unsecured | 93.0 | % | 92.8 | % | 3.8 | % | 3.8 | % | |||
Secured | 7.0 | % | 7.2 | % | 3.9 | % | 3.9 | % | |||
Variable-rate vs. fixed-rate: | |||||||||||
Variable-rate | 4.1 | % | 11.0 | % | 1.3 | % | 2.8 | % | |||
Fixed-rate (2) | 95.9 | % | 89.0 | % | 3.9 | % | 3.9 | % | |||
Stated rate (2) | 3.8 | % | 3.8 | % | |||||||
GAAP effective rate (3) | 3.9 | % | 3.8 | % | |||||||
GAAP effective rate including debt issuance costs | 4.0 | % | 4.0 | % |
Unsecured Credit | Covenant Level | Actual Performance as of June 30, | ||||||||||||
Total debt to total asset value | less than 60% | 28% | ||||||||||||
Fixed charge coverage ratio | greater than 1.5x | |||||||||||||
Unsecured debt ratio | greater than 1.67x | |||||||||||||
Unencumbered asset pool debt service coverage | greater than 1.75x | |||||||||||||
Unsecured Senior Notes due 2023, 2024, 2025, 2028, 2029, 2030 and (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% | 2% | ||||||||||||
Unencumbered asset pool value to unsecured debt | greater than 150% |
Six Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Dollar Change | Percentage Change | ||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 216,466 | $ | 224,022 | $ | (7,556) | (3.4) | % | |||||||||||||||
Net cash provided by (used in) investing activities | 95,302 | (374,341) | 469,643 | 125.5 | % | ||||||||||||||||||
Net cash (used in) provided by financing activities | (165,134) | 695,287 | (860,421) | (123.8) | % | ||||||||||||||||||
Net increase in cash and cash equivalents | $ | 146,634 | $ | 544,968 | $ | (398,334) | (73.1) | % |
Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | Dollar Change | Percentage Change | |||||||||||
($ in thousands) | ||||||||||||||
Net cash provided by operating activities | $ | 224,022 | $ | 165,660 | $ | 58,362 | 35.2 | % | ||||||
Net cash used in investing activities | (374,341 | ) | (417,036 | ) | 42,695 | 10.2 | % | |||||||
Net cash provided by financing activities | 695,287 | 139,057 | 556,230 | 400.0 | % | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | 544,968 | $ | (112,319 | ) | $ | 657,287 | 585.2 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 19,618 | $ | 42,194 | $ | 59,435 | $ | 79,097 | Net income available to common stockholders | $ | 35,839 | $ | 19,618 | $ | 533,470 | $ | 59,435 | |||||||||||||||||||||
Adjustments: | Adjustments: | |||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 367 | 871 | 1,072 | 1,571 | Net income attributable to noncontrolling common units of the Operating Partnership | 354 | 367 | 5,240 | 1,072 | |||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 4,367 | 4,150 | 9,263 | 8,341 | Net income attributable to noncontrolling interests in consolidated property partnerships | 6,687 | 4,367 | 11,581 | 9,263 | |||||||||||||||||||||||||||||
Depreciation and amortization of real estate assets | 75,981 | 67,011 | 148,419 | 131,982 | Depreciation and amortization of real estate assets | 72,037 | 75,981 | 146,468 | 148,419 | |||||||||||||||||||||||||||||
Gains on sales of depreciable real estate | — | (7,169 | ) | — | (7,169 | ) | ||||||||||||||||||||||||||||||||
Gain on sale of depreciable real estate | Gain on sale of depreciable real estate | (543) | — | (457,831) | — | |||||||||||||||||||||||||||||||||
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships | (7,244 | ) | (7,152 | ) | (14,927 | ) | (14,105 | ) | Funds From Operations attributable to noncontrolling interests in consolidated property partnerships | (9,779) | (7,244) | (18,089) | (14,927) | |||||||||||||||||||||||||
Funds From Operations (1)(2) | $ | 93,089 | $ | 99,905 | $ | 203,262 | $ | 199,717 | Funds From Operations (1)(2) | $ | 104,595 | $ | 93,089 | $ | 220,839 | $ | 203,262 |
(1) Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders. |
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 | |||||||||
April 1. 2020 - April 30, 2020 | 2,871 | $ | 61.86 | — | — | ||||||||
May 1, 2020 - May 31, 2020 | — | — | — | — | |||||||||
June 1, 2020 - June 30, 2020 | 8,797 | 63.34 | — | — | |||||||||
Total | 11,668 | $ | 62.97 | — | — |
Number |
3.(i)1 | ||||||||
3.(i)2 | ||||||||
3.(i)3 | ||||||||
3.(i)4 | ||||||||
3.(i)5 | ||||||||
3.(ii)1 | ||||||||
3.(ii)2 | ||||||||
10.2 | ||||||||
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 June 30, | |||||||
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/ | |||||||
Senior Vice President, and Treasurer (Principal Financial Officer) | ||||||||
By: | /s/ Merryl E. Werber | |||||||
Merryl E. Werber Senior Vice President, Chief Accounting Officer 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/ | |||||||
Senior Vice President, and Treasurer (Principal Financial Officer) | ||||||||
By: | /s/ Merryl E. Werber | |||||||
Merryl E. Werber Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer) |