Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 21, 2017 | |
Entity Registrant Name | KILROY REALTY CORP | |
Entity Central Index Key | 1,025,996 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 98,364,989 | |
Kilroy Realty, L.P. [Member] | ||
Entity Registrant Name | Kilroy Realty, L.P. | |
Entity Central Index Key | 1,493,976 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
REAL ESTATE ASSETS: | ||
Land and improvements | $ 1,108,971 | $ 1,108,971 |
Buildings and improvements | 4,983,638 | 4,938,250 |
Undeveloped land and construction in progress | 1,183,618 | 1,013,533 |
Total real estate assets held for investment | 7,276,227 | 7,060,754 |
Accumulated depreciation and amortization | (1,234,079) | (1,139,853) |
Total real estate assets held for investment, net | 6,042,148 | 5,920,901 |
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET | 0 | 9,417 |
CASH AND CASH EQUIVALENTS | 387,616 | 193,418 |
RESTRICTED CASH | 8,249 | 56,711 |
MARKETABLE SECURITIES (Note 11) | 16,010 | 14,773 |
CURRENT RECEIVABLES, NET (Note 3) | 13,703 | 13,460 |
DEFERRED RENT RECEIVABLES, NET (Note 3) | 233,427 | 218,977 |
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 195,320 | 208,368 |
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 4) | 98,894 | 70,608 |
TOTAL ASSETS | 6,995,367 | 6,706,633 |
LIABILITIES: | ||
Secured debt, net (Notes 5 and 11) | 467,758 | 472,772 |
Unsecured debt, net (Notes 5 and 11) | 2,097,083 | 1,847,351 |
Accounts payable, accrued expenses and other liabilities | 219,483 | 202,391 |
Accrued dividends and distributions (Note 16) | 44,105 | 222,306 |
Deferred revenue and acquisition-related intangible liabilities, net | 148,729 | 150,360 |
Rents received in advance and tenant security deposits | 55,738 | 52,080 |
Liabilities of real estate assets held for sale | 0 | 56 |
Total liabilities | 3,032,896 | 2,947,316 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ||
Preferred stock, $.01 par value, 30,000,000 shares authorized: | ||
Common stock, $.01 par value, 150,000,000 shares authorized, 98,351,217 and 93,219,439 shares issued and outstanding, respectively | 984 | 932 |
Additional paid-in capital | 3,792,028 | 3,457,649 |
Distributions in excess of earnings | (132,799) | (107,997) |
Total stockholders’ equity | 3,756,469 | 3,542,995 |
Noncontrolling Interests: | ||
Common units of the Operating Partnership (Note 6) | 77,296 | 85,590 |
Noncontrolling interests in consolidated property partnerships (Note 1) | 128,706 | 130,732 |
Total noncontrolling interests | 206,002 | 216,322 |
Total equity | 3,962,471 | 3,759,317 |
TOTAL LIABILITIES AND EQUITY (CAPITAL) | 6,995,367 | 6,706,633 |
6.875% Series G Cumulative Redeemable Preferred stock, $.01 par value, no shares issued and outstanding at 6/30/2017, and 4,000,000 shares authorized, issued and outstanding ($100,000 liquidation preference) at 12/31/2016 [Member] | ||
Preferred stock, $.01 par value, 30,000,000 shares authorized: | ||
Cumulative Redeemable Preferred stock | 0 | 96,155 |
6.375% Series H Cumulative Redeemable Preferred stock, $.01 par value, 4,000,000 shares authorized, issued and outstanding ($100,000 liquidation preference) (Note 16) [Member] | ||
Preferred stock, $.01 par value, 30,000,000 shares authorized: | ||
Cumulative Redeemable Preferred stock | $ 96,256 | $ 96,256 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 98,351,217 | 93,219,439 |
Common stock, shares outstanding | 98,351,217 | 93,219,439 |
Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Series G Cumulative Redeemable Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0.01 |
Preferred stock, shares authorized | 0 | 4,000,000 |
Preferred stock, shares issued | 0 | 4,000,000 |
Preferred stock, shares outstanding | 0 | 4,000,000 |
Preferred stock dividend rate percentage | 0.00% | 6.875% |
Preferred stock liquidation preference | $ 0 | $ 100,000,000 |
Series H Cumulative Redeemable Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 4,000,000 | 4,000,000 |
Preferred stock, shares outstanding | 4,000,000 | 4,000,000 |
Preferred stock dividend rate percentage | 6.375% | 6.375% |
Preferred stock liquidation preference | $ 100,000,000 | $ 100,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUES | ||||
Rental income | $ 158,925 | $ 143,653 | $ 315,573 | $ 277,408 |
Tenant reimbursements | 19,267 | 16,138 | 38,563 | 27,542 |
Other property income | 2,406 | 342 | 5,770 | 629 |
Total revenues | 180,598 | 160,133 | 359,906 | 305,579 |
EXPENSES | ||||
Property expenses | 33,304 | 29,221 | 64,545 | 55,186 |
Real estate taxes | 16,543 | 13,845 | 34,507 | 24,877 |
Provision for bad debts | 409 | 0 | 1,707 | 0 |
Ground leases | 1,547 | 768 | 3,189 | 1,597 |
General and administrative expenses | 14,303 | 13,979 | 29,236 | 27,416 |
Acquisition-related expenses (Note 1) | 0 | 714 | 0 | 776 |
Depreciation and amortization | 62,251 | 53,346 | 123,170 | 103,786 |
Total expenses | 128,357 | 111,873 | 256,354 | 213,638 |
OTHER (EXPENSES) INCOME | ||||
Interest income and other net investment gains (Note 11) | 1,038 | 311 | 2,103 | 582 |
Interest expense (Note 5) | (17,973) | (14,384) | (35,325) | (26,213) |
Total other (expenses) income | (16,935) | (14,073) | (33,222) | (25,631) |
INCOME FROM OPERATIONS BEFORE GAINS (LOSS) ON SALES OF REAL ESTATE | 35,306 | 34,187 | 70,330 | 66,310 |
Net loss on sale of land | 0 | (295) | 0 | (295) |
Gains on sales of depreciable operating properties (Note 2) | 0 | 0 | 2,257 | 145,990 |
NET INCOME | 35,306 | 33,892 | 72,587 | 212,005 |
Net income attributable to noncontrolling common units of the Operating Partnership (Note 6) | (616) | (829) | (1,239) | (4,439) |
Net income attributable to noncontrolling interests in consolidated property partnerships | (3,242) | (216) | (6,375) | (411) |
Total income attributable to noncontrolling interests | (3,858) | (1,045) | (7,614) | (4,850) |
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION (KILROY REALTY, L.P.) | 31,448 | 32,847 | 64,973 | 207,155 |
Preferred dividends | (1,615) | (3,312) | (4,966) | (6,625) |
Original issuance costs of redeemed preferred stock (preferred units) | 0 | 0 | (3,845) | 0 |
Total preferred dividends | (1,615) | (3,312) | (8,811) | (6,625) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (UNITHOLDERS) | $ 29,833 | $ 29,535 | $ 56,162 | $ 200,530 |
Net income available to common stockholders per share – basic (in dollars per share) (Note 12) | $ 0.30 | $ 0.32 | $ 0.56 | $ 2.17 |
Net income available to common stockholders per share – diluted (in dollars per share) (Note 12) | $ 0.30 | $ 0.31 | $ 0.56 | $ 2.15 |
Weighted average common shares outstanding – basic (in shares) | 98,275,471 | 92,209,955 | 97,834,255 | 92,217,238 |
Weighted average common shares outstanding – diluted (in shares) | 98,827,378 | 92,824,786 | 98,427,345 | 92,784,065 |
Dividends declared per common share (in dollars per share) | $ 0.425 | $ 0.375000 | $ 0.8 | $ 0.725 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Common Stock Additional Paid-in Capital [Member] | Common Stock Distributions in Excess of Earnings [Member] | Total Stockholders' Equity [Member] | Noncontrolling Interests [Member] |
Beginning balance at Dec. 31, 2015 | $ 3,234,586 | $ 192,411 | $ 923 | $ 3,047,894 | $ (70,262) | $ 3,170,966 | $ 63,620 |
Beginning balance (in shares) at Dec. 31, 2015 | 92,258,690 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 212,005 | 207,155 | 207,155 | 4,850 | |||
Original issuance costs of redeemed preferred stock (preferred units) | 0 | ||||||
Issuance of share-based compensation awards | 853 | 853 | 853 | ||||
Non-cash amortization of share-based compensation | 12,538 | 12,538 | 12,538 | ||||
Exercise of stock options (Note 9) (in shares) | 22,000 | ||||||
Exercise of stock options (Note 9) | 937 | 937 | 937 | ||||
Settlement of restricted stock units for shares of common stock, shares | 69,238 | ||||||
Settlement of restricted stock units for shares of common stock | 0 | $ 1 | (1) | 0 | |||
Repurchase of common stock, stock options and restricted stock units, shares | (96,360) | ||||||
Repurchase of common stock, stock options and restricted stock units | (5,883) | $ (1) | (5,882) | (5,883) | |||
Issuance of common units in connection with acquisition | 48,033 | 48,033 | |||||
Exchange of common units of the Operating Partnership, shares | 1,200 | ||||||
Exchange of common units of the Operating Partnership | 0 | 39 | 39 | (39) | |||
Distributions to noncontrolling interests in consolidated property partnerships | (281) | (281) | |||||
Adjustment for noncontrolling interest | 0 | 18,130 | 18,130 | (18,130) | |||
Preferred dividends | (6,625) | (6,625) | (6,625) | ||||
Dividends declared per common share and common unit ($0.800 and $0.725 per share/unit for the six months ended June 2017 and 2016, respectively) | (69,529) | (67,621) | (67,621) | (1,908) | |||
Ending balance at Jun. 30, 2016 | 3,426,634 | 192,411 | $ 923 | 3,074,508 | 62,647 | 3,330,489 | 96,145 |
Ending balance (in shares) at Jun. 30, 2016 | 92,254,768 | ||||||
Beginning balance at Dec. 31, 2016 | $ 3,759,317 | 192,411 | $ 932 | 3,457,649 | (107,997) | 3,542,995 | 216,322 |
Beginning balance (in shares) at Dec. 31, 2016 | 93,219,439 | 93,219,439 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 72,587 | 64,973 | 64,973 | 7,614 | |||
Redemption of Series G preferred stock (Note 7) | (100,000) | (100,000) | |||||
Original issuance costs of redeemed preferred stock (preferred units) | (3,845) | (3,845) | |||||
Issuance of common stock, shares (Note 7) | 4,427,500 | ||||||
Issuance of common stock (Note 7) | 308,832 | $ 44 | 308,788 | 308,832 | |||
Issuance of share-based compensation awards | 4,691 | 4,691 | 4,691 | ||||
Non-cash amortization of share-based compensation | 12,628 | 12,628 | 12,628 | ||||
Exercise of stock options (Note 9) (in shares) | 272,000 | ||||||
Exercise of stock options (Note 9) | 12,051 | $ 4 | 12,047 | 12,051 | |||
Settlement of restricted stock units for shares of common stock, shares | 278,057 | ||||||
Settlement of restricted stock units for shares of common stock | 0 | $ 3 | (3) | 0 | |||
Repurchase of common stock, stock options and restricted stock units, shares | (150,129) | ||||||
Repurchase of common stock, stock options and restricted stock units | (11,642) | $ (2) | (11,640) | (11,642) | |||
Exchange of common units of the Operating Partnership, shares | 304,350 | ||||||
Exchange of common units of the Operating Partnership | 0 | $ 3 | 10,936 | 10,939 | (10,939) | ||
Contributions from noncontrolling interests in consolidated property partnerships | 250 | 0 | 250 | ||||
Distributions to noncontrolling interests in consolidated property partnerships | (8,651) | 0 | (8,651) | ||||
Adjustment for noncontrolling interest | 0 | (3,068) | (3,068) | 3,068 | |||
Preferred dividends | (4,966) | (4,966) | (4,966) | ||||
Dividends declared per common share and common unit ($0.800 and $0.725 per share/unit for the six months ended June 2017 and 2016, respectively) | (82,626) | (80,964) | (80,964) | (1,662) | |||
Ending balance at Jun. 30, 2017 | $ 3,962,471 | $ 96,256 | $ 984 | $ 3,792,028 | $ (132,799) | $ 3,756,469 | $ 206,002 |
Ending balance (in shares) at Jun. 30, 2017 | 98,351,217 | 98,351,217 |
Consolidated Statements of Equ6
Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | Dec. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends declared per common share and common unit (in dollars per share) | $ 1.90 | $ 0.425 | $ 0.375000 | $ 0.8 | $ 0.725 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 72,587 | $ 212,005 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of real estate assets and leasing costs | 120,734 | 102,127 |
Depreciation of non-real estate furniture, fixtures and equipment | 2,436 | 1,659 |
Increase in provision for bad debts (Note 3) | 1,707 | 0 |
Non-cash amortization of share-based compensation awards | 8,966 | 10,034 |
Non-cash amortization of deferred financing costs and debt discounts and premiums | 1,469 | 1,306 |
Non-cash amortization of net below market rents | (3,603) | (3,243) |
Gains on sales of depreciable operating properties (Note 2) | (2,257) | (145,990) |
Loss on sale of land | 0 | 295 |
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (8,243) | (6,100) |
Straight-line rents | (15,537) | (18,537) |
Net change in other operating assets | (7,418) | (6,071) |
Net change in other operating liabilities | 7,575 | (9,856) |
Net cash provided by operating activities | 178,416 | 137,629 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Expenditures for development properties and undeveloped land | (161,045) | (162,122) |
Expenditures for operating properties and other capital assets | (40,738) | (65,543) |
Expenditures for acquisition of operating properties | 0 | (55,415) |
Expenditures for acquisition of undeveloped land | 0 | (33,513) |
Net proceeds received from dispositions (Note 2) | 11,865 | 276,622 |
(Increase) decrease in acquisition-related deposits | (26,100) | 1,902 |
Increase in note receivable | 0 | (1,000) |
Net cash used in investing activities | (216,018) | (39,069) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from issuance of common stock (Note 7) | 308,832 | 0 |
Redemption of Series G preferred stock | (100,000) | 0 |
Proceeds from the issuance of unsecured debt (Note 5) | 250,000 | 0 |
Borrowings on unsecured revolving credit facility | 0 | 270,000 |
Repayments on unsecured revolving credit facility | 0 | (50,000) |
Principal payments on secured debt | (4,213) | (4,808) |
Financing costs | (2,191) | (679) |
Repurchase of common stock and restricted stock units | (11,642) | (5,883) |
Proceeds from exercise of stock options | 12,051 | 937 |
Contributions from noncontrolling interests in consolidated property partnerships | 250 | 0 |
Distributions to noncontrolling interests in consolidated property partnerships | (8,651) | (281) |
Dividends and distributions paid to common stockholders and common unitholders | (255,292) | (65,935) |
Dividends and distributions paid to preferred stockholders and preferred unitholders | (5,806) | (6,625) |
Net cash provided by financing activities | 183,338 | 136,726 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 145,736 | 235,286 |
Cash and cash equivalents and restricted cash, beginning of period | 250,129 | 57,204 |
Cash and cash equivalents and restricted cash, end of period | $ 395,865 | $ 292,490 |
Consolidated Balance Sheets (KI
Consolidated Balance Sheets (KILROY REALTY, L.P.) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
REAL ESTATE ASSETS: | ||
Land and improvements | $ 1,108,971 | $ 1,108,971 |
Buildings and improvements | 4,983,638 | 4,938,250 |
Undeveloped land and construction in progress | 1,183,618 | 1,013,533 |
Total real estate assets held for investment | 7,276,227 | 7,060,754 |
Accumulated depreciation and amortization | (1,234,079) | (1,139,853) |
Total real estate assets held for investment, net | 6,042,148 | 5,920,901 |
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET | 0 | 9,417 |
CASH AND CASH EQUIVALENTS | 387,616 | 193,418 |
RESTRICTED CASH | 8,249 | 56,711 |
MARKETABLE SECURITIES (Note 11) | 16,010 | 14,773 |
CURRENT RECEIVABLES, NET (Note 3) | 13,703 | 13,460 |
DEFERRED RENT RECEIVABLES, NET (Note 3) | 233,427 | 218,977 |
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 195,320 | 208,368 |
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 4) | 98,894 | 70,608 |
TOTAL ASSETS | 6,995,367 | 6,706,633 |
LIABILITIES: | ||
Secured debt, net (Notes 5 and 11) | 467,758 | 472,772 |
Unsecured debt, net (Notes 5 and 11) | 2,097,083 | 1,847,351 |
Accounts payable, accrued expenses and other liabilities | 219,483 | 202,391 |
Accrued distributions (Note 16) | 44,105 | 222,306 |
Deferred revenue and acquisition-related intangible liabilities, net | 148,729 | 150,360 |
Rents received in advance and tenant security deposits | 55,738 | 52,080 |
Liabilities of real estate assets held for sale | 0 | 56 |
Total liabilities | 3,032,896 | 2,947,316 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ||
Partners’ Capital (Note 8): | ||
TOTAL LIABILITIES AND EQUITY (CAPITAL) | 6,995,367 | 6,706,633 |
Kilroy Realty, L.P. [Member] | ||
REAL ESTATE ASSETS: | ||
Land and improvements | 1,108,971 | 1,108,971 |
Buildings and improvements | 4,983,638 | 4,938,250 |
Undeveloped land and construction in progress | 1,183,618 | 1,013,533 |
Total real estate assets held for investment | 7,276,227 | 7,060,754 |
Accumulated depreciation and amortization | (1,234,079) | (1,139,853) |
Total real estate assets held for investment, net | 6,042,148 | 5,920,901 |
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET | 0 | 9,417 |
CASH AND CASH EQUIVALENTS | 387,616 | 193,418 |
RESTRICTED CASH | 8,249 | 56,711 |
MARKETABLE SECURITIES (Note 11) | 16,010 | 14,773 |
CURRENT RECEIVABLES, NET (Note 3) | 13,703 | 13,460 |
DEFERRED RENT RECEIVABLES, NET (Note 3) | 233,427 | 218,977 |
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 195,320 | 208,368 |
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 4) | 98,894 | 70,608 |
TOTAL ASSETS | 6,995,367 | 6,706,633 |
LIABILITIES: | ||
Secured debt, net (Notes 5 and 11) | 467,758 | 472,772 |
Unsecured debt, net (Notes 5 and 11) | 2,097,083 | 1,847,351 |
Accounts payable, accrued expenses and other liabilities | 219,483 | 202,391 |
Accrued distributions (Note 16) | 44,105 | 222,306 |
Deferred revenue and acquisition-related intangible liabilities, net | 148,729 | 150,360 |
Rents received in advance and tenant security deposits | 55,738 | 52,080 |
Liabilities of real estate assets held for sale | 0 | 56 |
Total liabilities | 3,032,896 | 2,947,316 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ||
Partners’ Capital (Note 8): | ||
Common units, 98,351,217 and 93,219,439 held by the general partner and 2,077,193 and 2,381,543 held by common limited partners issued and outstanding, respectively | 3,732,916 | 3,431,768 |
Total partners’ capital | 3,829,172 | 3,624,179 |
Noncontrolling interests in consolidated property partnerships and subsidiaries (Note 1) | 133,299 | 135,138 |
Total capital | 3,962,471 | 3,759,317 |
TOTAL LIABILITIES AND EQUITY (CAPITAL) | 6,995,367 | 6,706,633 |
Kilroy Realty, L.P. [Member] | Series G Cumulative Redeemable Preferred Units [Member] | ||
Partners’ Capital (Note 8): | ||
Cumulative Redeemable Preferred units | 0 | 96,155 |
Kilroy Realty, L.P. [Member] | Series H Cumulative Redeemable Preferred Units [Member] | ||
Partners’ Capital (Note 8): | ||
Cumulative Redeemable Preferred units | $ 96,256 | $ 96,256 |
Consolidated Balance Sheets (K9
Consolidated Balance Sheets (KILROY REALTY, L.P.) (Parenthetical) - Kilroy Realty, L.P. [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Series G Cumulative Redeemable Preferred Units [Member] | ||
Preferred units, issued | 0 | 4,000,000 |
Preferred units, outstanding | 0 | 4,000,000 |
Preferred stock dividend rate percentage | 0.00% | 6.875% |
Preferred stock liquidation preference | $ 0 | $ 100,000 |
Series H Cumulative Redeemable Preferred Units [Member] | ||
Preferred units, issued | 4,000,000 | 4,000,000 |
Preferred units, outstanding | 4,000,000 | 4,000,000 |
Preferred stock dividend rate percentage | 6.375% | 6.375% |
Preferred stock liquidation preference | $ 100,000 | $ 100,000 |
Common Units [Member] | ||
General partner, units issued | 98,351,217 | 93,219,439 |
General partners, units outstanding | 98,351,217 | 93,219,439 |
Limited partners, units issued | 2,077,193 | 2,381,543 |
Noncontrolling common units of the Operating Partnership | 2,077,193 | 2,381,543 |
Consolidated Statements of Op10
Consolidated Statements of Operations (KILROY REALTY, L.P.) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUES | ||||
Rental income | $ 158,925 | $ 143,653 | $ 315,573 | $ 277,408 |
Tenant reimbursements | 19,267 | 16,138 | 38,563 | 27,542 |
Other property income | 2,406 | 342 | 5,770 | 629 |
Total revenues | 180,598 | 160,133 | 359,906 | 305,579 |
EXPENSES | ||||
Property expenses | 33,304 | 29,221 | 64,545 | 55,186 |
Real estate taxes | 16,543 | 13,845 | 34,507 | 24,877 |
Provision for bad debts | 409 | 0 | 1,707 | 0 |
Ground leases | 1,547 | 768 | 3,189 | 1,597 |
General and administrative expenses | 14,303 | 13,979 | 29,236 | 27,416 |
Acquisition-related expenses (Note 1) | 0 | 714 | 0 | 776 |
Depreciation and amortization | 62,251 | 53,346 | 123,170 | 103,786 |
Total expenses | 128,357 | 111,873 | 256,354 | 213,638 |
OTHER (EXPENSES) INCOME | ||||
Interest income and other net investment gains (Note 11) | 1,038 | 311 | 2,103 | 582 |
Interest expense (Note 5) | (17,973) | (14,384) | (35,325) | (26,213) |
Total other (expenses) income | (16,935) | (14,073) | (33,222) | (25,631) |
Net loss on sale of land | 0 | (295) | 0 | (295) |
Gains on sales of depreciable operating properties (Note 2) | 0 | 0 | 2,257 | 145,990 |
NET INCOME | 35,306 | 33,892 | 72,587 | 212,005 |
Net income attributable to noncontrolling interests in consolidated property partnerships and subsidiaries | (3,858) | (1,045) | (7,614) | (4,850) |
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION (KILROY REALTY, L.P.) | 31,448 | 32,847 | 64,973 | 207,155 |
Original issuance costs of redeemed preferred stock (preferred units) | 0 | 0 | (3,845) | 0 |
Total preferred dividends | (1,615) | (3,312) | (8,811) | (6,625) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (UNITHOLDERS) | $ 29,833 | $ 29,535 | $ 56,162 | $ 200,530 |
Net income available to common unitholders per unit-basic (in dollars per unit) (Note 13) | $ 0.30 | $ 0.32 | $ 0.56 | $ 2.17 |
Net income available to common unitholders per unit-diluted (in dollars per unit) (Note 13) | $ 0.30 | $ 0.31 | $ 0.56 | $ 2.15 |
Weighted average common units outstanding - basic (in units) | 98,275,471 | 92,209,955 | 97,834,255 | 92,217,238 |
Weighted average common units outstanding - diluted (in units) | 98,827,378 | 92,824,786 | 98,427,345 | 92,784,065 |
Kilroy Realty, L.P. [Member] | ||||
REVENUES | ||||
Rental income | $ 158,925 | $ 143,653 | $ 315,573 | $ 277,408 |
Tenant reimbursements | 19,267 | 16,138 | 38,563 | 27,542 |
Other property income | 2,406 | 342 | 5,770 | 629 |
Total revenues | 180,598 | 160,133 | 359,906 | 305,579 |
EXPENSES | ||||
Property expenses | 33,304 | 29,221 | 64,545 | 55,186 |
Real estate taxes | 16,543 | 13,845 | 34,507 | 24,877 |
Provision for bad debts | 409 | 0 | 1,707 | 0 |
Ground leases | 1,547 | 768 | 3,189 | 1,597 |
General and administrative expenses | 14,303 | 13,979 | 29,236 | 27,416 |
Acquisition-related expenses (Note 1) | 0 | 714 | 0 | 776 |
Depreciation and amortization | 62,251 | 53,346 | 123,170 | 103,786 |
Total expenses | 128,357 | 111,873 | 256,354 | 213,638 |
OTHER (EXPENSES) INCOME | ||||
Interest income and other net investment gains (Note 11) | 1,038 | 311 | 2,103 | 582 |
Interest expense (Note 5) | (17,973) | (14,384) | (35,325) | (26,213) |
Total other (expenses) income | (16,935) | (14,073) | (33,222) | (25,631) |
INCOME FROM OPERATIONS BEFORE GAINS (LOSS) ON SALES OF REAL ESTATE | 35,306 | 34,187 | 70,330 | 66,310 |
Net loss on sale of land | 0 | (295) | 0 | (295) |
Gains on sales of depreciable operating properties (Note 2) | 0 | 0 | 2,257 | 145,990 |
NET INCOME | 35,306 | 33,892 | 72,587 | 212,005 |
Net income attributable to noncontrolling interests in consolidated property partnerships and subsidiaries | (3,335) | (302) | (6,562) | (582) |
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION (KILROY REALTY, L.P.) | 31,971 | 33,590 | 66,025 | 211,423 |
Preferred distributions | (1,615) | (3,312) | (4,966) | (6,625) |
Original issuance costs of redeemed preferred stock (preferred units) | 0 | 0 | (3,845) | 0 |
Total preferred dividends | (1,615) | (3,312) | (8,811) | (6,625) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (UNITHOLDERS) | $ 30,356 | $ 30,278 | $ 57,214 | $ 204,798 |
Net income available to common unitholders per unit-basic (in dollars per unit) (Note 13) | $ 0.30 | $ 0.31 | $ 0.56 | $ 2.16 |
Net income available to common unitholders per unit-diluted (in dollars per unit) (Note 13) | $ 0.30 | $ 0.31 | $ 0.56 | $ 2.15 |
Weighted average common units outstanding - basic (in units) | 100,352,664 | 94,841,231 | 100,024,000 | 94,514,876 |
Weighted average common units outstanding - diluted (in units) | 100,904,571 | 95,456,062 | 100,617,090 | 95,081,703 |
Dividends declared per common unit (in dollars per unit) | $ 0.425 | $ 0.375 | $ 0.8 | $ 0.725000 |
Consolidated Statements of Capi
Consolidated Statements of Capital (KILROY REALTY, L.P.) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 35,306 | $ 33,892 | $ 72,587 | $ 212,005 |
Redemption of Series G preferred units (Note 8) | (100,000) | |||
Original issuance costs of redeemed preferred stock (preferred units) | 0 | 0 | (3,845) | 0 |
Non-cash amortization of share-based compensation | 12,628 | 12,538 | ||
Settlement of restricted stock units | 0 | 0 | ||
Contributions from noncontrolling interests in consolidated property partnerships | 250 | |||
Distributions to noncontrolling interests in consolidated property partnerships | (8,651) | (281) | ||
Preferred distributions | (4,966) | (6,625) | ||
Noncontrolling Interests [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 7,614 | 4,850 | ||
Contributions from noncontrolling interests in consolidated property partnerships | 250 | |||
Distributions to noncontrolling interests in consolidated property partnerships | (8,651) | (281) | ||
Kilroy Realty, L.P. [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 3,759,317 | 3,234,586 | ||
Net income | 35,306 | 33,892 | 72,587 | 212,005 |
Redemption of Series G preferred units (Note 8) | (100,000) | |||
Original issuance costs of redeemed preferred stock (preferred units) | 0 | 0 | (3,845) | 0 |
Issuance of common units | 308,832 | |||
Issuance of common units in connection with acquisition | 48,033 | |||
Issuance of share-based compensation awards | 4,691 | 853 | ||
Non-cash amortization of share-based compensation | 12,628 | 12,538 | ||
Exercise of stock options (Note 9) | 12,051 | 937 | ||
Repurchase of common units, stock options and restricted stock units | (11,642) | (5,883) | ||
Settlement of restricted stock units | 0 | 0 | ||
Contributions from noncontrolling interests in consolidated property partnerships | 250 | |||
Distributions to noncontrolling interests in consolidated property partnerships | (8,651) | (281) | ||
Preferred distributions | (4,966) | (6,625) | ||
Distributions declared per common unit ($0.800 and $0.725 per unit for the six months ended June 2017 and 2016, respectively) | (82,626) | (69,529) | ||
Ending balance | 3,962,471 | 3,426,634 | 3,962,471 | 3,426,634 |
Kilroy Realty, L.P. [Member] | Partners Capital Preferred Units [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 192,411 | 192,411 | ||
Redemption of Series G preferred units (Note 8) | (96,155) | |||
Ending balance | 96,256 | 192,411 | 96,256 | 192,411 |
Kilroy Realty, L.P. [Member] | Partners Capital Common Unit [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 3,431,768 | $ 3,031,609 | ||
Beginning balance (in units) | 95,600,982 | 94,023,465 | ||
Net income | $ 66,025 | $ 211,423 | ||
Original issuance costs of redeemed preferred stock (preferred units) | $ (3,845) | |||
Issuance of common units (in units) | 4,427,500 | |||
Issuance of common units | $ 308,832 | |||
Issuance of common units in connection with acquisition (in units) | 867,701 | |||
Issuance of common units in connection with acquisition | $ 48,033 | |||
Issuance of share-based compensation awards | 4,691 | 853 | ||
Non-cash amortization of share-based compensation | $ 12,628 | $ 12,538 | ||
Exercise of stock options (Note 9) (in units) | 272,000 | 22,000 | ||
Exercise of stock options (Note 9) | $ 12,051 | $ 937 | ||
Repurchase of common units and restricted stock units (in units) | (150,129) | (96,360) | ||
Repurchase of common units, stock options and restricted stock units | $ (11,642) | $ (5,883) | ||
Settlement of restricted stock units (in units) | 278,057 | 69,238 | ||
Settlement of restricted stock units | $ 0 | $ 0 | ||
Contributions from noncontrolling interests in consolidated property partnerships | ||||
Preferred distributions | (4,966) | (6,625) | ||
Distributions declared per common unit ($0.800 and $0.725 per unit for the six months ended June 2017 and 2016, respectively) | (82,626) | (69,529) | ||
Ending balance | $ 3,732,916 | $ 3,223,356 | $ 3,732,916 | $ 3,223,356 |
Ending balance (in units) | 100,428,410 | 94,886,044 | 100,428,410 | 94,886,044 |
Kilroy Realty, L.P. [Member] | Total Partners Capital [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 3,624,179 | $ 3,224,020 | ||
Net income | 66,025 | 211,423 | ||
Redemption of Series G preferred units (Note 8) | (100,000) | |||
Issuance of common units | 308,832 | |||
Issuance of common units in connection with acquisition | 48,033 | |||
Issuance of share-based compensation awards | 4,691 | 853 | ||
Non-cash amortization of share-based compensation | 12,628 | 12,538 | ||
Exercise of stock options (Note 9) | 12,051 | 937 | ||
Repurchase of common units, stock options and restricted stock units | (11,642) | (5,883) | ||
Settlement of restricted stock units | 0 | 0 | ||
Preferred distributions | (4,966) | (6,625) | ||
Distributions declared per common unit ($0.800 and $0.725 per unit for the six months ended June 2017 and 2016, respectively) | (82,626) | (69,529) | ||
Ending balance | $ 3,829,172 | $ 3,415,767 | 3,829,172 | 3,415,767 |
Kilroy Realty, L.P. [Member] | Noncontrolling Interests [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 135,138 | 10,566 | ||
Net income | 6,562 | 582 | ||
Contributions from noncontrolling interests in consolidated property partnerships | 250 | |||
Distributions to noncontrolling interests in consolidated property partnerships | (8,651) | (281) | ||
Ending balance | $ 133,299 | $ 10,867 | $ 133,299 | $ 10,867 |
Consolidated Statements of Ca12
Consolidated Statements of Capital (KILROY REALTY, L.P.) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Kilroy Realty, L.P. [Member] | ||||
Dividends declared per common unit (in dollars per unit) | $ 0.425 | $ 0.375 | $ 0.8 | $ 0.725000 |
Consolidated Statements of Ca13
Consolidated Statements of Cash Flows (KILROY REALTY, L.P.) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 72,587 | $ 212,005 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of real estate assets and leasing costs | 120,734 | 102,127 |
Depreciation of non-real estate furniture, fixtures and equipment | 2,436 | 1,659 |
Increase in provision for bad debts (Note 3) | 1,707 | 0 |
Non-cash amortization of share-based compensation awards | 8,966 | 10,034 |
Non-cash amortization of deferred financing costs and debt discounts and premiums | 1,469 | 1,306 |
Non-cash amortization of net below market rents | (3,603) | (3,243) |
Gains on sales of depreciable operating properties (Note 2) | (2,257) | (145,990) |
Loss on sale of land | 0 | 295 |
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (8,243) | (6,100) |
Straight-line rents | (15,537) | (18,537) |
Net change in other operating assets | (7,418) | (6,071) |
Net change in other operating liabilities | 7,575 | (9,856) |
Net cash provided by operating activities | 178,416 | 137,629 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Expenditures for development properties and undeveloped land | (161,045) | (162,122) |
Expenditures for operating properties and other capital assets | (40,738) | (65,543) |
Expenditures for acquisition of operating properties | 0 | (55,415) |
Expenditures for acquisition of undeveloped land | 0 | (33,513) |
Net proceeds received from dispositions (Note 2) | 11,865 | 276,622 |
(Increase) decrease in acquisition-related deposits | (26,100) | 1,902 |
Increase in note receivable | 0 | (1,000) |
Net cash used in investing activities | (216,018) | (39,069) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Redemption of Series G preferred units | (100,000) | 0 |
Proceeds from the issuance of unsecured debt (Note 5) | 250,000 | 0 |
Borrowings on unsecured revolving credit facility | 0 | 270,000 |
Repayments on unsecured revolving credit facility | 0 | (50,000) |
Principal payments on secured debt | (4,213) | (4,808) |
Financing costs | (2,191) | (679) |
Repurchase of common stock and restricted stock units | (11,642) | (5,883) |
Proceeds from exercise of stock options | 12,051 | 937 |
Contributions from noncontrolling interests in consolidated property partnerships | 250 | 0 |
Distributions to noncontrolling interests in consolidated property partnerships | (8,651) | (281) |
Distributions paid to common unitholders | (255,292) | (65,935) |
Distributions paid to preferred unitholders | (5,806) | (6,625) |
Net cash provided by financing activities | 183,338 | 136,726 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 145,736 | 235,286 |
Cash and cash equivalents and restricted cash, beginning of period | 250,129 | 57,204 |
Cash and cash equivalents and restricted cash, end of period | 395,865 | 292,490 |
Kilroy Realty, L.P. [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | 72,587 | 212,005 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of real estate assets and leasing costs | 120,734 | 102,127 |
Depreciation of non-real estate furniture, fixtures and equipment | 2,436 | 1,659 |
Increase in provision for bad debts (Note 3) | 1,707 | 0 |
Non-cash amortization of share-based compensation awards | 8,966 | 10,034 |
Non-cash amortization of deferred financing costs and debt discounts and premiums | 1,469 | 1,306 |
Non-cash amortization of net below market rents | (3,603) | (3,243) |
Gains on sales of depreciable operating properties (Note 2) | (2,257) | (145,990) |
Loss on sale of land | 0 | 295 |
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (8,243) | (6,100) |
Straight-line rents | (15,537) | (18,537) |
Net change in other operating assets | (7,418) | (6,071) |
Net change in other operating liabilities | 7,575 | (9,856) |
Net cash provided by operating activities | 178,416 | 137,629 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Expenditures for development properties and undeveloped land | (161,045) | (162,122) |
Expenditures for operating properties and other capital assets | (40,738) | (65,543) |
Expenditures for acquisition of operating properties | 0 | 55,415 |
Expenditures for acquisition of undeveloped land | 0 | (33,513) |
Net proceeds received from dispositions (Note 2) | 11,865 | 276,622 |
(Increase) decrease in acquisition-related deposits | (26,100) | 1,902 |
Increase in note receivable | 0 | (1,000) |
Net cash used in investing activities | (216,018) | (39,069) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from issuance of common units (Note 8) | 308,832 | 0 |
Redemption of Series G preferred units | (100,000) | 0 |
Proceeds from the issuance of unsecured debt (Note 5) | 250,000 | 0 |
Borrowings on unsecured revolving credit facility | 0 | 270,000 |
Repayments on unsecured revolving credit facility | 0 | (50,000) |
Principal payments on secured debt | (4,213) | (4,808) |
Financing costs | (2,191) | (679) |
Repurchase of common stock and restricted stock units | (11,642) | (5,883) |
Proceeds from exercise of stock options | 12,051 | 937 |
Contributions from noncontrolling interests in consolidated property partnerships | 250 | 0 |
Distributions to noncontrolling interests in consolidated property partnerships | (8,651) | (281) |
Distributions paid to common unitholders | (255,292) | (65,935) |
Distributions paid to preferred unitholders | (5,806) | (6,625) |
Net cash provided by financing activities | 183,338 | 136,726 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 145,736 | 235,286 |
Cash and cash equivalents and restricted cash, beginning of period | 250,129 | 57,204 |
Cash and cash equivalents and restricted cash, end of period | $ 395,865 | $ 292,490 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Kilroy Realty Corporation (the “Company”) is a self-administered real estate investment trust (“REIT”) active in premier office and mixed-use submarkets along the West Coast. We own, develop, acquire and manage real estate assets, consisting primarily of Class A properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and Greater Seattle, which we believe have strategic advantages and strong barriers to entry. Class A real estate encompasses attractive and efficient buildings of high quality that are attractive to tenants, are well-designed and constructed with above-average material, workmanship and finishes and are well-maintained and managed. We qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). The Company’s common stock is publicly traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “KRC.” We own our interests in all of our real estate assets through Kilroy Realty, L.P. (the “Operating Partnership”) and Kilroy Realty Finance Partnership, L.P. (the “Finance Partnership”). We generally conduct substantially all of our operations through the Operating Partnership. Unless stated otherwise or the context indicates otherwise, the terms “Kilroy Realty Corporation” or the “Company,” “we,” “our,” and “us” refer to Kilroy Realty Corporation and its consolidated subsidiaries and the term “Operating Partnership” refers to Kilroy Realty, L.P. and its consolidated subsidiaries. The descriptions of our business, employees and properties apply to both the Company and the Operating Partnership. Our stabilized portfolio of operating properties was comprised of the following properties at June 30, 2017 : Number of Buildings Rentable Square Feet (unaudited) Number of Tenants Percentage Occupied (unaudited) Percentage Leased (unaudited) Stabilized Office Properties 111 14,394,534 543 93.9 % 96.0 % Number of Number of Units Percentage Occupied (unaudited) Percentage Leased (unaudited) Stabilized Residential Property 1 200 77.0 % 82.0 % Our stabilized portfolio includes all of our properties with the exception of development and redevelopment properties currently under construction or committed for construction, “lease-up” properties, real estate assets held for sale and undeveloped land. We define redevelopment properties as those properties for which we expect to spend significant development and construction costs on the existing or acquired buildings pursuant to a formal plan, the intended result of which is a higher economic return on the property. We define “lease-up” properties as office properties we recently developed or redeveloped that have not yet reached 95% occupancy and are within one year following cessation of major construction activities. There were no operating properties in “lease-up” or held for sale as of June 30, 2017 . During the six months ended June 30, 2017 , we added one development project to our stabilized office portfolio consisting of 365,359 rentable square feet in Hollywood, California. As of June 30, 2017 , the following properties were excluded from our stabilized portfolio. We did not have any redevelopment properties at June 30, 2017 . Number of Properties/Projects Estimated Rentable Square Feet (1) Development projects under construction (2) 4 1,800,000 ________________________ (1) Estimated rentable square feet upon completion. (2) Development projects under construction also include 96,000 square feet of retail space and 237 residential units in addition to the estimated office rentable square feet noted above. Our stabilized portfolio also excludes our near-term and future development pipeline, which as of June 30, 2017 was comprised of six development sites, representing approximately 52 gross acres of undeveloped land. As of June 30, 2017 , all of our properties and development projects were owned and all of our business was conducted in the state of California with the exception of twelve office properties and one development project under construction located in the state of Washington. All of our properties and development projects are 100% owned, excluding four office properties owned by three consolidated property partnerships. Two of the three property partnerships, 100 First Street Member, LLC (“100 First LLC”) and 303 Second Street Member, LLC (“303 Second LLC”), each owned one office property in San Francisco, California through subsidiary REITs. As of June 30, 2017 , the Company owned a 56% common equity interest in both 100 First LLC and 303 Second LLC. The third property partnership, Redwood City Partners, LLC (“Redwood LLC”) owned two office properties in Redwood City, California. As of June 30, 2017 , the Company owned an approximate 93% common equity interest in Redwood LLC. The remaining interests in all three property partnerships were owned by unrelated third parties. Ownership and Basis of Presentation The consolidated financial statements of the Company include the consolidated financial position and results of operations of the Company, the Operating Partnership, the Finance Partnership, Kilroy Services, LLC (“KSLLC”), 100 First LLC, 303 Second LLC, Redwood LLC and all of our wholly-owned and controlled subsidiaries. The consolidated financial statements of the Operating Partnership include the consolidated financial position and results of operations of the Operating Partnership, the Finance Partnership, KSLLC, 100 First LLC, 303 Second LLC, Redwood LLC and all wholly-owned and controlled subsidiaries of the Operating Partnership. All intercompany balances and transactions have been eliminated in the consolidated financial statements. As of June 30, 2017 , the Company owned an approximate 97.9% common general partnership interest in the Operating Partnership. The remaining approximate 2.1% common limited partnership interest in the Operating Partnership as of June 30, 2017 was owned by non-affiliated investors and certain of our executive officers and directors (see Note 6). Both the general and limited common partnership interests in the Operating Partnership are denominated in common units. Generally, the number of common units held by the Company is equivalent to the number of outstanding shares of the Company’s common stock, and the rights of all the common units to quarterly distributions and payments in liquidation mirror those of the Company’s common stockholders. The common limited partners have certain redemption rights as provided in the Operating Partnership’s Seventh Amended and Restated Agreement of Limited Partnership, as amended, the “Partnership Agreement”. Kilroy Realty Finance, Inc., which is a wholly-owned subsidiary of the Company, is the sole general partner of the Finance Partnership and owns a 1.0% common general partnership interest in the Finance Partnership. The Operating Partnership owns the remaining 99.0% common limited partnership interest. We conduct substantially all of our development activities through KSLLC, which is a wholly owned subsidiary of the Operating Partnership. With the exception of the Operating Partnership and our consolidated property partnerships, all of our subsidiaries are wholly-owned. The accompanying interim financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The interim financial statements for the Company and the Operating Partnership should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2016 . Variable Interest Entities The Operating Partnership is a variable interest entity (“VIE”) of the Company as the Operating Partnership is a limited partnership in which the common limited partners do not have substantive kick-out or participating rights. At June 30, 2017 , the consolidated financial statements of the Company included two VIEs in addition to the Operating Partnership: 100 First LLC and 303 Second LLC. At June 30, 2017 , the Company and the Operating Partnership were determined to be the primary beneficiary of these two VIEs since we had the ability to control the activities that most significantly impact each of the VIE’s economic performance. As of June 30, 2017 , these two VIEs’ total assets, liabilities and noncontrolling interests included on our consolidated balance sheet were approximately $431.3 million (of which $386.7 million related to real estate held for investment), approximately $152.6 million and approximately $122.4 million , respectively. Revenues, income and net assets generated by 100 First LLC and 303 Second LLC may only be used to settle its contractual obligations, which primarily consist of operating expenses, capital expenditures and required distributions. At December 31, 2016 , the consolidated financial statements of the Company and the Operating Partnership included three VIEs in which we were deemed to be the primary beneficiary: 100 First LLC, 303 Second LLC and an entity established during the fourth quarter of 2016 to facilitate a transaction intended to qualify as a like-kind exchange pursuant to Section 1031 of the Code (“Section 1031 Exchange”). In January 2017, the Section 1031 Exchange was successfully completed and the entity established for the 1031 Exchange was no longer a VIE. At December 31, 2016 , the impact of consolidating the VIEs increased the Company’s total assets, liabilities and noncontrolling interests on our consolidated balance sheet by approximately $654.3 million (of which $588.6 million related to real estate held for investment), approximately $166.1 million and approximately $124.3 million , respectively. Adoption of New Accounting Pronouncements Effective January 1, 2017, the Company adopted FASB ASU No. 2017-01 (“ASU 2017-01”) which clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework provides a screen for determining whether an integrated set of assets is a business combination or an asset acquisition and clarifies that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar assets, the set of assets and activities is deemed not to meet the definition of a business. As a result of our adoption of the guidance, which we adopted on a prospective basis, the Company expects that most of our future acquisitions of operating properties and development properties that were previously accounted for as business combinations will instead be accounted for as asset acquisitions under the new guidance. In addition, we expect that most of the transaction costs associated with these future acquisitions will be capitalized as part of the purchase price of the acquisition instead of being expensed as incurred to acquisition-related expenses. The Company did not have any acquisitions of operating properties during the six months ended June 30, 2017 . Also effective January 1, 2017, the Company adopted ASU No. 2016-18 (“ASU 2016-18”) which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted ASU 2016-18 on a retrospective basis. Therefore, amounts generally described as restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Company’s consolidated statements of cash flows for the six months ended June 30, 2017 and 2016 . As a result of the adoption of ASU 2016-18, the change in restricted cash is no longer presented as a separate line item within cash flows from investing activities on the Company’s consolidated statements of cash flows since such balances are now included in total cash at both the beginning and end of the reporting period. As a result, for the six months ended June 30, 2016 , the Company had net cash used in investing activities of $39.1 million instead of net cash used in investing activities of $304.5 million as previously reported since the Company had $258.1 million of restricted cash at June 30, 2016 that was held at qualified intermediaries to facilitate potential future Section1031 Exchanges. In addition, effective January 1, 2017, the Company adopted ASU No. 2016-09 (“ASU 2016-09”) which simplified several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The adoption of this guidance did not have an impact on our consolidated financial statements or notes to our consolidated financial statements. Recently Issued Accounting Pronouncements ASU No. 2016-02 “Leases (Topic 842)” On February 25, 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”) to amend the accounting guidance for leases. The accounting applied by a lessor is largely unchanged under ASU 2016-02. However, the standard requires lessees to recognize lease assets and lease liabilities for leases classified as operating leases on the balance sheet. Lessees will recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it will recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. We are currently conducting our evaluation of the impact of the guidance on our consolidated financial statements and have an active project team working on the evaluation and implementation of the guidance. We currently believe that the adoption of the standard will not significantly change the accounting for operating leases on our consolidated balance sheets where we are the lessor, and that such leases will be accounted for in a similar method to existing standards with the underlying leased asset being reported and recognized as a real estate asset. We currently expect that certain non-lease components will need to be accounted for separately from the lease components, with the lease components continuing to be recognized on a straight-line basis over the term of the lease and certain non-lease components (such as common area maintenance and provision of utilities) being accounted for under the new revenue recognition guidance in ASU 2014-09 discussed below, even when revenue for such non-lease components is not separately stipulated in the lease. In addition, under ASU 2016-02, lessors will only be permitted to capitalize and amortize incremental direct leasing costs. As a result, we expect that upon the adoption of the standard, we will no longer be able to capitalize and amortize certain leasing related costs and instead will expense these costs as incurred. We currently expect this could have a material impact to the Company’s results of operations upon adoption of the standard. For leases where we are the lessee, specifically for our ground leases, we currently believe that the adoption of the standard will significantly change the accounting on our consolidated balance sheets since both existing ground leases and any future ground leases will be required to be recorded on the Company’s consolidated balance sheets as an obligation of the Company. We currently believe that existing ground leases executed before the January 1, 2019 adoption date will continue to be accounted for as operating leases and will not have a material impact on our recognition of ground lease expense or our results of operations. However, we believe that we will be required to recognize a right of use asset and a lease liability on our consolidated balance sheets equal to the present value of the minimum lease payments required in accordance with each ground lease. As of June 30, 2017 , our future undiscounted minimum rental payments under these leases totaled $253.9 million , with several of the leases containing provisions for rental payments to fluctuate based on fair market value and operating income measurements with expirations through 2093. In addition, we currently believe that for new ground leases entered into after the adoption date of the new standard, such leases could be required to be accounted for as a financing type lease, resulting in ground lease expense recorded using the effective interest method instead of on a straight-line basis over the term of the lease. This could have a significant impact on our results of operations if we enter into material new ground leases after the date of adoption since ground lease expense calculated using the effective interest method results in an increased amount of ground lease expense in the earlier years of a ground lease as compared to the current straight-line method. We will adopt the guidance on a modified retrospective basis as required by ASU 2016-02. We are in the process of evaluating whether we will elect to apply the practical expedients identified in the standard but currently believe that we may do so. ASU No. 2014-09 “ Revenue From Contracts with Customers (Topic 606)” In May 2014, the FASB issued ASU 2014-09 “Revenue From Contracts with Customers (Topic 606)” (“ASU 2014-09”). The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue from contracts with customers and will supersede most of the existing revenue recognition guidance. On May 9, 2016 and December 21, 2016, the FASB issued ASU No. 2016-12 and ASU No. 2016-20, which provides practical expedients, technical corrections, and improvements for certain aspects of ASU No. 2014-09. Public business entities may elect to adopt the amendments as of the original effective date; however, adoption is required for annual reporting periods beginning after December 15, 2017. We are currently conducting our evaluation of the impact of the guidance on our consolidated financial statements and we have an active project team working on evaluation and implementation of the guidance. We have been compiling an inventory of the sources of revenue that the Company expects will be impacted by ASU 2014-09. Specifically, we have evaluated the impact on the timing of gain recognition for dispositions but currently do not believe there will be a material impact to our consolidated financial statements for dispositions given the simplicity of the Company’s historical disposition transactions. In addition, we currently believe that certain non-lease components of revenue from leases (upon the adoption of ASU 2016-02 on January 1, 2019) and parking revenue may be impacted by the adoption of ASU 2014-09. We are in the process of evaluating the impact of the standard but currently believe the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. Other Recently Issued Pronouncements On May 10, 2017, the FASB issued ASU No. 2017-09 “Compensation - Stock Compensation (Topic 718)” to clarify the scope of modification accounting. Under the guidance, an entity will not apply modification accounting to a share-based payment award if the award’s fair value, vesting conditions, and classification as an equity or liability instrument remain the same immediately before and after the change. The guidance is effective for annual periods beginning after December 15, 2017 and early adoption is permitted. The Company does not currently anticipate that the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements. On February 22, 2017, the FASB issued ASU No. 2017-05 “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)” (“ASU 2017-05”) to provide guidance and clarify the scope of the original guidance within Subtopic 610-20 “Gains and Losses from the Derecognition of Nonfinancial Assets” that was issued in connection with ASU 2014-09, which provided guidance for recognizing gains and losses from the transfer of nonfinancial assets in transactions with noncustomers. ASU 2017-05 additionally adds guidance pertaining to the partial sales of real estate and clarifies that nonfinancial assets within the scope of Accounting Standards Codification Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. ASU 2017-05 is effective for fiscal years beginning after December 15, 2017, with early application permitted for fiscal years beginning after December 15, 2016. We are currently evaluating the impact of ASU 2017-05 on our consolidated financial statements and currently do not anticipate that the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements. On August 26, 2016, the FASB issued ASU No. 2016-15 (“ASU 2016-15”) to provide guidance for areas where there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not currently anticipate that the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements. On June 16, 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”) to amend the accounting for credit losses for certain financial instruments. Under the new guidance, an entity recognizes its estimate of expected credit losses as an allowance, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company does not currently anticipate that the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements. On January 5, 2016, the FASB issued ASU No. 2016-01 (“ASU 2016-01”) to amend the accounting guidance on the classification and measurement of financial instruments. The standard requires that all investments in equity securities, including other ownership interests, are carried at fair value through net income. This requirement does not apply to investments that qualify for equity method accounting or to those that result in consolidation of the investee or for which the entity has elected the predictability exception to fair value measurement. Additionally, the standard requires that the portion of the total fair value change caused by a change in instrument-specific credit risk for financial liabilities for which the fair value option has been elected would be recognized in other comprehensive income. Any accumulated amount remaining in other comprehensive income is reclassified to earnings when the liability is extinguished. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017. The Company does not currently anticipate that the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements. |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Dispositions Operating Property Disposition The following table summarizes the operating property sold during the six months ended June 30, 2017 . Location Property Type Month of Disposition Number of Buildings Rentable Square Feet Sales Price (1) (in millions) 5717 Pacific Center Boulevard, San Diego, CA (2) Office January 1 67,995 $ 12.1 Total Dispositions 1 67,995 $ 12.1 ________________________ (1) Represents gross sales price before the impact of broker commissions and closing costs. (2) This property was classified as held for sale at December 31, 2016 . The gain on the operating property sold during the six months ended June 30, 2017 was $2.3 million . |
Receivables
Receivables | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Receivables | Receivables Current Receivables, net Current receivables, net is primarily comprised of contractual rents and other lease-related obligations due from tenants. The balance consisted of the following as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Current receivables $ 15,161 $ 15,172 Allowance for uncollectible tenant receivables (1,458 ) (1,712 ) Current receivables, net $ 13,703 $ 13,460 Deferred Rent Receivables, net Deferred rent receivables, net consisted of the following as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Deferred rent receivables $ 236,038 $ 220,501 Allowance for deferred rent receivables (2,611 ) (1,524 ) Deferred rent receivables, net $ 233,427 $ 218,977 |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets, Net | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets, Net | Prepaid Expenses and Other Assets, Net Prepaid expenses and other assets, net consisted of the following at June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Furniture, fixtures and other long-lived assets, net $ 39,693 $ 40,395 Notes receivable (1) 19,788 19,439 Prepaid expenses & deposits 39,413 10,774 Total prepaid expenses and other assets, net $ 98,894 $ 70,608 _______________ (1) Approximately $15.1 million of our notes receivable are secured by real estate. |
Secured and Unsecured Debt of t
Secured and Unsecured Debt of the Operating Partnership | 6 Months Ended |
Jun. 30, 2017 | |
Kilroy Realty, L.P. [Member] | |
Debt Instrument [Line Items] | |
Secured and Unsecured Debt of the Operating Partnership | Secured and Unsecured Debt of the Operating Partnership Unsecured Senior Notes - Private Placement On February 17, 2017, the Operating Partnership issued the $175.0 million principal amount of its 3.35% Senior Notes, Series A, due February 17, 2027 (the “Series A Notes”), and the $75.0 million principal amount of its 3.45% Senior Notes, Series B, due February 17, 2029 (the “Series B Notes” and, together with the Series A Notes, the “Series A and B Notes”). The Series A and B Notes were issued pursuant to a delayed draw option under a Note Purchase Agreement entered into in connection with a private placement in September 2016. As of June 30, 2017 , there was $175.0 million and $75.0 million issued and outstanding aggregate principal amount of Series A and B Notes, respectively. The Series A Notes mature on February 17, 2027, and the Series B Notes mature on February 17, 2029, unless earlier redeemed or prepaid pursuant to the terms of the Note Purchase Agreement. Interest on the Series A and B Notes is payable semi-annually in arrears on February 17 and August 17 of each year beginning August 17, 2017. The Operating Partnership may, at its option and upon notice to the purchasers of the Series A and B Notes, prepay at any time all, or from time to time, any part of the Series A and B Notes then outstanding (in an amount not less than 5% of the aggregate principal amount of the Series A and B Notes then outstanding in the case of a partial prepayment), at 100% of the principal amount so prepaid, plus the make-whole amount determined for the prepayment date with respect to such principal amount as set forth in the Note Purchase Agreement. In connection with the issuance of the Series A and B Notes, the Company entered into an agreement whereby it guarantees the payment by the Operating Partnership of all amounts due with respect to the Series A and B Notes and the performance by the Operating Partnership of its obligations under the Note Purchase Agreement. Unsecured Revolving Credit Facility and Term Loan Facility The following table summarizes the balance and terms of our unsecured revolving credit facility as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Outstanding borrowings $ — $ — Remaining borrowing capacity 600,000 600,000 Total borrowing capacity (1) $ 600,000 $ 600,000 Interest rate (2) 2.27 % 1.82 % Facility fee-annual rate (3) 0.200% Maturity date July 2019 ________________________ (1) We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility. (2) The interest rate on our unsecured revolving credit facility is based on an annual rate of LIBOR plus 1.050% . (3) Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of June 30, 2017 and December 31, 2016 , $2.6 million and $3.3 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured revolving credit facility, which are included in prepaid expenses and other assets, net on our consolidated balance sheets. The Company intends to borrow under the unsecured revolving credit facility from time to time for general corporate purposes, to finance development and redevelopment expenditures, to fund potential acquisitions and to potentially repay long-term debt. No borrowings under the unsecured revolving credit facility occurred during the six months ended June 30, 2017 . The following table summarizes the balance and terms of our unsecured term loan facility as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Outstanding borrowings (1) $ 150,000 $ 150,000 Interest rate (2) 2.36 % 1.85 % Maturity date July 2019 ________________________ (1) As of June 30, 2017 and December 31, 2016 , $0.5 million and $0.7 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured term loan facility. (2) Our unsecured term loan facility interest rate was calculated based on an annual rate of LIBOR plus 1.150% . Additionally, the Company had a $39.0 million unsecured term loan outstanding with an annual interest rate of LIBOR plus 1.150% as of June 30, 2017 and December 31, 2016 , that was to mature in July 2019. As of June 30, 2017 and December 31, 2016 , $0.1 million and $0.2 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured term loan. In July 2017, the Operating Partnership amended and restated the terms of its unsecured revolving credit facility and unsecured term loan facility (together, the “Facility”). The amendment and restatement increased the size of the unsecured revolving credit facility from $600.0 million to $750.0 million , maintained the size of the unsecured term loan facility of $150.0 million , reduced the borrowing costs and extended the maturity date of the Facility to July 2022. The unsecured term loan facility features two six-month delayed draw options and the Facility was undrawn at closing, including the $150.0 million term loan, which was repaid in full at closing with available cash. Concurrently with the closing of the Facility, the Operating Partnership repaid its $39.0 million unsecured term loan with available cash. Debt Covenants and Restrictions The unsecured revolving credit facility, the unsecured term loan facility, the unsecured term loan, the unsecured senior notes, the Series A and B Notes and certain other secured debt arrangements contain covenants and restrictions requiring us to meet certain financial ratios and reporting requirements. Some of the more restrictive financial covenants include a maximum ratio of total debt to total asset value, a minimum fixed-charge coverage ratio, a minimum unsecured debt ratio and a minimum unencumbered asset pool debt service coverage ratio. Noncompliance with one or more of the covenants and restrictions could result in the full principal balance of the associated debt becoming immediately due and payable. We believe we were in compliance with all of our debt covenants as of June 30, 2017 . Debt Maturities The following table summarizes the stated debt maturities and scheduled amortization payments of our issued and outstanding debt, excluding unamortized debt discounts, premiums and deferred financing costs, as of June 30, 2017 : Year (in thousands) Remaining 2017 $ 3,072 2018 451,669 2019 265,309 2020 255,137 2021 5,342 Thereafter 1,599,023 Total (1) $ 2,579,552 ________________________ (1) Includes gross principal balance of outstanding debt before the effect of the following at June 30, 2017 : $12.0 million of unamortized deferred financing costs, $6.2 million of unamortized discounts for the unsecured senior notes and $3.5 million of unamortized premiums for the secured debt. Capitalized Interest and Loan Fees The following table sets forth gross interest expense, including debt discount/premium and deferred financing cost amortization, net of capitalized interest, for the three and six months ended June 30, 2017 and 2016 . The interest expense capitalized was recorded as a cost of development and increased the carrying value of undeveloped land and construction in progress. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Gross interest expense $ 28,731 $ 26,668 $ 56,246 $ 52,843 Capitalized interest and deferred financing costs (10,758 ) (12,284 ) (20,921 ) (26,630 ) Interest expense $ 17,973 $ 14,384 $ 35,325 $ 26,213 |
Noncontrolling Interests on the
Noncontrolling Interests on the Company's Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests on the Company's Consolidated Financial Statements | Noncontrolling Interests on the Company’s Consolidated Financial Statements Common Units of the Operating Partnership The Company owned an approximate 97.9% , 97.5% and 97.2% common general partnership interest in the Operating Partnership as of June 30, 2017 , December 31, 2016 and June, 30, 2016 , respectively. The remaining approximate 2.1% , 2.5% and 2.8% common limited partnership interest as of June 30, 2017 , December 31, 2016 and June, 30, 2016 , respectively, was owned by non-affiliated investors and certain of our executive officers and directors in the form of noncontrolling common units. There were 2,077,193 , 2,381,543 and 2,631,276 common units outstanding held by these investors, executive officers and directors as of June 30, 2017 , December 31, 2016 and June, 30, 2016 , respectively. The noncontrolling common units may be redeemed by unitholders for cash. Except under certain circumstances, we, at our option, may satisfy the cash redemption obligation with shares of the Company’s common stock on a one-for-one basis. If satisfied in cash, the value for each noncontrolling common unit upon redemption is the amount equal to the average of the closing quoted price per share of the Company’s common stock, par value $.01 per share, as reported on the NYSE for the ten trading days immediately preceding the applicable redemption date. The aggregate value upon redemption of the then-outstanding noncontrolling common units was $158.6 million and $174.9 million as of June 30, 2017 and December 31, 2016 , respectively. This redemption value does not necessarily represent the amount that would be distributed with respect to each noncontrolling common unit in the event of our termination or liquidation. In the event of our termination or liquidation, it is expected in most cases that each common unit would be entitled to a liquidating distribution equal to the liquidating distribution payable in respect of each share of the Company’s common stock. |
Stockholders' Equity of the Com
Stockholders' Equity of the Company | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity of the Company | Stockholders’ Equity of the Company Preferred Stock Redemption On March 30, 2017 (the “Redemption Date”), the Company redeemed all 4,000,000 shares of its 6.875% Series G Cumulative Redeemable Preferred Stock (“Series G Preferred Stock”). The shares of Series G Preferred Stock were redeemed at a redemption price equal to their stated liquidation preference of $25.00 per share, representing $100.0 million in aggregate, plus all accrued and unpaid dividends to the Redemption Date. During the six months ended June 30, 2017 , we recognized a non-recurring non-cash charge of $3.8 million as a reduction to net income available to common stockholders for the original issuance costs related to the Series G Preferred Stock. Common Stock Issuance In January 2017, the Company completed an underwritten public offering of 4,427,500 shares of its common stock. The net offering proceeds, after deducting underwriting discounts and offering expenses, were approximately $308.8 million . We used a portion of the proceeds to partially fund our 2016 special dividend and will use the remaining proceeds for general corporate uses, to fund development expenditures, for potential future acquisitions and to repay outstanding indebtedness. At-The-Market Stock Offering Program Under our current at-the-market stock offering program, which commenced in December 2014, we may offer and sell shares of our common stock having an aggregate gross sales price of up to $300.0 million from time to time in “at-the-market” offerings. No shares of common stock were sold under this program during the six months ended June 30, 2017 . Since commencement of the program through June 30, 2017 , we have sold 2,459,165 shares of common stock having an aggregate gross sales price of $182.4 million . As of June 30, 2017 , shares of common stock having an aggregate gross sales price of up to $117.6 million remain available to be sold under this program. Actual future sales will depend upon a variety of factors, including but not limited to market conditions, the trading price of the Company’s common stock and our capital needs. We have no obligation to sell the remaining shares available for sale under this program. Payment of 2016 Special Cash Dividend On January 13, 2017 , the Company paid $184.3 million of special cash dividends, which was the equivalent of $1.90 of special cash dividend per share of common stock to stockholders of record on December 30, 2016 . This special dividend payment was in addition to the $36.4 million of regular dividends we also paid on January 13, 2017 to common stockholders, unitholders and RSU holders of record on December 30, 2016 . |
Partners' Capital of the Operat
Partners' Capital of the Operating Partnership | 6 Months Ended |
Jun. 30, 2017 | |
Partners' Capital Notes [Abstract] | |
Partners’ Capital of the Operating Partnership | Partners’ Capital of the Operating Partnership Preferred Stock Redemption On March 30, 2017 , the Company redeemed all 4,000,000 units of its 6.875% Series G Cumulative Redeemable Preferred Stock. For each share of Series G Preferred Stock that was outstanding, the Company had an equivalent number of 6.875% Series G Preferred Units (“Series G Preferred Units”) outstanding with substantially similar terms as the Series G Preferred Stock. In connection with the redemption of the Series G Preferred Stock, the Series G Preferred Units held by the Company were redeemed by the Operating Partnership. Issuance of Common Units In January 2017, the Company completed an underwritten public offering of 4,427,500 shares of its common stock as discussed in Note 7. The net offering proceeds of approximately $308.8 million were contributed by the Company to the Operating Partnership in exchange for 4,427,500 common units. Common Units Outstanding The following table sets forth the number of common units held by the Company and the number of common units held by non-affiliated investors and certain of our executive officers and directors in the form of noncontrolling common units as well as the ownership interest held on each respective date: June 30, 2017 December 31, 2016 June 30, 2016 Company owned common units in the Operating Partnership 98,351,217 93,219,439 92,254,768 Company owned general partnership interest 97.9 % 97.5 % 97.2 % Noncontrolling common units of the Operating Partnership 2,077,193 2,381,543 2,631,276 Ownership interest of noncontrolling interest 2.1 % 2.5 % 2.8 % For further discussion of the noncontrolling common units as of June 30, 2017 and December 31, 2016 , refer to Note 6. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Stockholder Approved Equity Compensation Plans As of June 30, 2017 , we maintained one share-based incentive compensation plan, the Kilroy Realty 2006 Incentive Award Plan, as amended (the “2006 Plan”). As of June 30, 2017 , 2,026,925 shares were available for grant under the 2006 Plan. The calculation of shares available for grant is presented after taking into account a reserve for a sufficient number of shares to cover the vesting and payment of 2006 Plan awards that were outstanding on that date, including performance-based vesting awards at (i) levels actually achieved for the performance conditions (as defined below) for which the performance period has been completed and (ii) at target levels for the performance or market conditions (as defined below) for awards still in a performance period. 2017 Share-Based Compensation Grants In February 2017 , the Executive Compensation Committee of the Company’s Board of Directors awarded 229,976 restricted stock units (“RSUs”) to certain officers of the Company under the 2006 Plan, which included 130,956 RSUs (at the target level of performance), or 57% , that are subject to market and/or performance-based vesting requirements (the “2017 Performance-Based RSUs”) and 99,020 RSUs, or 43% , that are subject to time-based vesting requirements (the “2017 Time-Based RSUs”). 2017 Performance-Based RSU Grant The 2017 Performance-Based RSUs are scheduled to vest at the end of a three -year period based upon the achievement of pre-set FFO per share goals for the year ending December 31, 2017 (the “FFO performance condition”) and also based upon either the average FAD per share growth or the Company’s average debt to EBITDA ratio (the “other performance conditions”) or the average annual relative total stockholder return ranking for the Company compared to an established comparison group of companies (the “market condition”) for the three -year period ending December 31, 2019. The 2017 Performance-Based RSUs are also subject to a three -year service vesting provision and are scheduled to cliff vest at the end of the three -year period. The number of 2017 Performance-Based RSUs ultimately earned could fluctuate from the target number of 2017 Performance-Based RSUs granted based upon the levels of achievement for the FFO performance condition, the other performance conditions and the market condition. The estimate of the number of 2017 Performance-Based RSUs earned is evaluated quarterly during the performance period based on our estimate for each of the performance conditions measured against the applicable goals. As of June 30, 2017 , the number of 2017 Performance-Based RSUs estimated to be earned based on the Company’s estimate of the performance conditions measured against the applicable goals was 130,956 , and the compensation cost recorded to date for this program was based on that estimate. Compensation expense for the 2017 Performance-Based RSU grant will be recorded on a straight-line basis over the three -year period. Each 2017 Performance-Based RSU represents the right, subject to the applicable vesting conditions, to receive one share of our common stock in the future. The total fair value of the 2017 Performance-Based RSU grant was $10.3 million at February 24, 2017 . The determination of the fair value of the 2017 Performance-Based RSU grant with other performance conditions takes into consideration the likelihood of achievement of the FFO performance condition and the other performance conditions. The grant date fair value for the performance awards with a market condition was calculated using a Monte Carlo simulation pricing model based on the assumptions in the table below. For the portion of the 2017 Performance-Based RSUs subject to the market condition, for the six months ended June 30, 2017 , we recorded compensation expense based upon the $80.89 fair value at February 24, 2017 . The following table summarizes the assumptions utilized in the Monte Carlo simulation pricing model: Fair Value Assumptions Fair value per share at February 24, 2017 $80.89 Expected share price volatility 21.00% Risk-free interest rate 1.39% Remaining expected life 2.8 years The computation of expected volatility is based on a blend of the historical volatility of our shares of common stock over approximately 5.6 years, as that is expected to be most consistent with future volatility and equates to a time period twice as long as the approximate 2.8 -year remaining performance period of the RSUs and implied volatility data based on the observed pricing of six month publicly-traded options on our shares of common stock. The risk-free interest rate is based on the yield curve on zero-coupon U.S. Treasury STRIP securities in effect at February 24, 2017 . The expected life of the RSUs is equal to the remaining 2.8 year vesting period at February 24, 2017 . 2017 Time-Based RSU Grant The 2017 Time-Based RSUs are scheduled to vest in three equal installments beginning on January 5, 2018 through January 5, 2020. Compensation expense for the 2017 Time-Based RSUs will be recognized on a straight-line basis over the three -year service vesting period. Each 2017 Time-Based RSU represents the right to receive one share of our common stock in the future. The total fair value of the 2017 Time-Based RSU grant was $7.5 million , which was based on the $73.30 and $77.16 closing share prices of the Company’s common stock on the NYSE on the February 3, 2017 and February 24, 2017 grant dates, respectively. Share-Based Award Activity During the six months ended June 30, 2017 , 272,000 non-qualified stock options were exercised and issued at an exercise price per share equal to $42.61 . As of June 30, 2017 , there were 39,500 stock options outstanding. Share-Based Compensation Cost Recorded During the Period The total compensation cost for all share-based compensation programs was $6.5 million and $6.6 million for the three months ended June 30, 2017 and 2016 , respectively, and $12.6 million and $12.5 million for the six months ended June 30, 2017 and 2016 , respectively. Of the total share-based compensation costs, $1.6 million and $1.3 million was capitalized as part of real estate assets and deferred leasing costs for the three months ended June 30, 2017 and 2016 , respectively, and $3.7 million and $2.5 million for the six months ended June 30, 2017 and 2016 , respectively. As of June 30, 2017 , there was approximately $35.1 million of total unrecognized compensation cost related to nonvested incentive awards granted under share-based compensation arrangements that is expected to be recognized over a weighted-average period of 1.9 years. The remaining compensation cost related to these nonvested incentive awards had been recognized in periods prior to June 30, 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General As of June 30, 2017 , we had commitments of approximately $736.8 million , excluding our ground lease commitments, for contracts and executed leases directly related to our operating properties and development projects. Environmental Matters We follow the policy of monitoring all of our properties, both acquisition and existing stabilized portfolio properties, for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist, we are not currently aware of any environmental liability with respect to our stabilized portfolio properties that would have a material adverse effect on our financial condition, results of operations and cash flow, or that we believe would require additional disclosure or the recording of a loss contingency. As of June 30, 2017 , we had accrued environmental remediation liabilities of approximately $21.3 million recorded on our consolidated balance sheets in connection with certain development projects and recent development acquisitions. It is possible that we could incur additional environmental remediation costs in connection with these recent development acquisitions. However, given we are in the early stages of development on certain of these projects, potential additional environmental costs are not reasonably estimable at this time. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures Assets and Liabilities Reported at Fair Value The only assets we record at fair value on our consolidated financial statements are the marketable securities related to our Deferred Compensation Plan. The following table sets forth the fair value of our marketable securities as of June 30, 2017 and December 31, 2016 : Fair Value (Level 1) (1) June 30, 2017 December 31, 2016 Description (in thousands) Marketable securities (2) $ 16,010 $ 14,773 ________________________ (1) Based on quoted prices in active markets for identical securities. (2) The marketable securities are held in a limited rabbi trust. We report the change in the fair value of the marketable securities at the end of each accounting period in interest income and other net investment gains in the consolidated statements of operations. We also adjust the related Deferred Compensation Plan liability to fair value at the end of each accounting period based on the performance of the benchmark funds selected by each participant, which results in a corresponding increase or decrease to compensation cost for the period. The following table sets forth the net gain on marketable securities recorded during the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Description (in thousands) (in thousands) Net gain on marketable securities $ 512 $ 249 $ 1,183 $ 386 Financial Instruments Disclosed at Fair Value The following table sets forth the carrying value and the fair value of our other financial instruments as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 Carrying Fair (1) Carrying Fair (1) (in thousands) Liabilities Secured debt, net $ 467,758 $ 467,782 $ 472,772 $ 469,234 Unsecured debt, net 2,097,083 2,172,095 1,847,351 1,900,487 ________________________ (1) Fair value calculated using Level II inputs, which are based on model-derived valuations in which significant inputs and significant value drivers are observable in active markets. |
Net Income Available to Common
Net Income Available to Common Stockholders Per Share of the Company | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Available to Common Stockholders Per Share of the Company | Net Income Available to Common Stockholders Per Share of the Company The following table reconciles the numerator and denominator in computing the Company’s basic and diluted per-share computations for net income available to common stockholders for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except share and per share amounts) Numerator: Net income attributable to Kilroy Realty Corporation $ 31,448 $ 32,847 $ 64,973 $ 207,155 Total preferred dividends (1,615 ) (3,312 ) (8,811 ) (6,625 ) Allocation to participating securities (1) (511 ) (423 ) (959 ) (818 ) Numerator for basic and diluted net income available to common stockholders $ 29,322 $ 29,112 $ 55,203 $ 199,712 Denominator: Basic weighted average vested shares outstanding 98,275,471 92,209,955 97,834,255 92,217,238 Effect of dilutive securities 551,907 614,831 593,090 566,827 Diluted weighted average vested shares and common share equivalents outstanding 98,827,378 92,824,786 98,427,345 92,784,065 Basic earnings per share: Net income available to common stockholders per share $ 0.30 $ 0.32 $ 0.56 $ 2.17 Diluted earnings per share: Net income available to common stockholders per share $ 0.30 $ 0.31 $ 0.56 $ 2.15 ________________________ (1) Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. Share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities. The impact of potentially dilutive common shares, including stock options, RSUs and other securities are considered in our diluted earnings per share calculation for the three and six months ended June 30, 2017 and 2016 . Certain market measure-based RSUs are not included in dilutive securities for the three and six months ended June 30, 2017 and 2016 , as not all performance metrics had been met by the end of the applicable reporting periods. See Note 9 “Share-Based Compensation” for additional information regarding share-based compensation. |
Net Income Available to Commo26
Net Income Available to Common Unitholders Per Unit of the Operating Partnership | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Unit [Abstract] | |
Net Income Available to Common Unitholders Per Unit of the Operating Partnership | Net Income Available to Common Unitholders Per Unit of the Operating Partnership The following table reconciles the numerator and denominator in computing the Operating Partnership’s basic and diluted per-unit computations for net income available to common unitholders for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except unit and per unit amounts) Numerator: Net income attributable to Kilroy Realty, L.P. $ 31,971 $ 33,590 $ 66,025 $ 211,423 Total preferred distributions (1,615 ) (3,312 ) (8,811 ) (6,625 ) Allocation to participating securities (1) (511 ) (423 ) (959 ) (818 ) Numerator for basic and diluted net income available to common unitholders $ 29,845 $ 29,855 $ 56,255 $ 203,980 Denominator: Basic weighted average vested units outstanding 100,352,664 94,841,231 100,024,000 94,514,876 Effect of dilutive securities 551,907 614,831 593,090 566,827 Diluted weighted average vested units and common unit equivalents outstanding 100,904,571 95,456,062 100,617,090 95,081,703 Basic earnings per unit: Net income available to common unitholders per unit $ 0.30 $ 0.31 $ 0.56 $ 2.16 Diluted earnings per unit: Net income available to common unitholders per unit $ 0.30 $ 0.31 $ 0.56 $ 2.15 ________________________ (1) Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. Share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities. The impact of potentially dilutive common units, including stock options, RSUs and other securities are considered in our diluted earnings per share calculation for the three and six months ended June 30, 2017 and 2016 . Certain market measure-based RSUs are not included in dilutive securities for the three and six months ended June 30, 2017 and 2016 , as not all performance metrics had been met by the end of the applicable reporting periods. See Note 9 “Share-Based Compensation” for additional information regarding share-based compensation. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information of the Company | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information of the Company | Supplemental Cash Flow Information of the Company Supplemental cash flow information is included as follows (in thousands): Six Months Ended June 30, 2017 2016 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $20,219 and $25,674 as of June 30, 2017 and 2016, respectively $ 30,977 $ 25,787 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development properties $ 66,967 $ 50,246 Tenant improvements funded directly by tenants $ 9,221 $ 10,713 Assumption of accrued liabilities in connection with acquisitions $ — $ 4,911 NON-CASH FINANCING TRANSACTIONS: Accrual of dividends and distributions payable to common stockholders and common unitholders $ 43,305 $ 36,093 Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders $ 797 $ 1,656 Exchange of common units of the Operating Partnership into shares of the Company’s common stock $ 10,939 $ 39 Issuance of common units of the Operating Partnership in connection with an acquisition $ — $ 48,033 Secured debt assumed by buyers in connection with land dispositions $ — $ 2,322 The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, 2017 2016 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 193,418 $ 56,508 Restricted cash at beginning of period 56,711 696 Cash and cash equivalents and restricted cash at beginning of period $ 250,129 $ 57,204 Cash and cash equivalents at end of period $ 387,616 $ 26,332 Restricted cash at end of period 8,249 266,158 Cash and cash equivalents and restricted cash at end of period $ 395,865 $ 292,490 |
Supplemental Cash Flow Inform28
Supplemental Cash Flow Information of the Operating Partnership | 6 Months Ended |
Jun. 30, 2017 | |
Other Significant Noncash Transactions [Line Items] | |
Supplemental Cash Flow Information of the Operating Partnership | Supplemental Cash Flow Information of the Company Supplemental cash flow information is included as follows (in thousands): Six Months Ended June 30, 2017 2016 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $20,219 and $25,674 as of June 30, 2017 and 2016, respectively $ 30,977 $ 25,787 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development properties $ 66,967 $ 50,246 Tenant improvements funded directly by tenants $ 9,221 $ 10,713 Assumption of accrued liabilities in connection with acquisitions $ — $ 4,911 NON-CASH FINANCING TRANSACTIONS: Accrual of dividends and distributions payable to common stockholders and common unitholders $ 43,305 $ 36,093 Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders $ 797 $ 1,656 Exchange of common units of the Operating Partnership into shares of the Company’s common stock $ 10,939 $ 39 Issuance of common units of the Operating Partnership in connection with an acquisition $ — $ 48,033 Secured debt assumed by buyers in connection with land dispositions $ — $ 2,322 The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, 2017 2016 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 193,418 $ 56,508 Restricted cash at beginning of period 56,711 696 Cash and cash equivalents and restricted cash at beginning of period $ 250,129 $ 57,204 Cash and cash equivalents at end of period $ 387,616 $ 26,332 Restricted cash at end of period 8,249 266,158 Cash and cash equivalents and restricted cash at end of period $ 395,865 $ 292,490 |
Kilroy Realty, L.P. [Member] | |
Other Significant Noncash Transactions [Line Items] | |
Supplemental Cash Flow Information of the Operating Partnership | Supplemental Cash Flow Information of the Operating Partnership: Supplemental cash flow information is included as follows (in thousands): Six Months Ended June 30, 2017 2016 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $20,219 and $25,674 as of June 30, 2017 and 2016, respectively $ 30,977 $ 25,787 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development properties $ 66,967 $ 50,246 Tenant improvements funded directly by tenants $ 9,221 $ 10,713 Assumption of accrued liabilities in connection with acquisitions $ — $ 4,911 NON-CASH FINANCING TRANSACTIONS: Accrual of distributions payable to common unitholders $ 43,305 $ 36,093 Accrual of distributions payable to preferred unitholders $ 797 $ 1,656 Issuance of common units of the Operating Partnership in connection with an acquisition $ — $ 48,033 Secured debt assumed by buyers in connection with land dispositions $ — $ 2,322 The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, 2017 2016 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 193,418 $ 56,508 Restricted cash at beginning of period 56,711 696 Cash and cash equivalents and restricted cash at beginning of period $ 250,129 $ 57,204 Cash and cash equivalents at end of period $ 387,616 $ 26,332 Restricted cash at end of period 8,249 266,158 Cash and cash equivalents and restricted cash at end of period $ 395,865 $ 292,490 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 12, 2017 , aggregate dividends, distributions and dividend equivalents of $43.3 million were paid to common stockholders, common unitholders and RSU holders of record on June 30, 2017 . On July 12, 2017, the Company announced its intent to redeem all 4,000,000 shares of its 6.375% Series H Cumulative Redeemable Preferred Stock (“Series H Preferred Stock”) on August 15, 2017 by payment of $25.00 per share in cash, totaling $100.0 million . Upon redemption of the outstanding Series H Preferred Stock on August 15, 2017 , the Company will incur an associated non-cash charge of $3.7 million as a reduction to net income available to common stockholders for the related original issuance costs. On July 24 2017, the Operating Partnership amended and restated the terms of its unsecured revolving credit facility and term loan facility (together, the “Facility”). The amendment and restatement increased the size of the revolving credit facility from $600.0 million to $750.0 million , maintained the size of the term loan facility of $150.0 million , reduced the borrowing costs and extended the maturity date of the Facility to July 2022. The term loan facility features two six-month delayed draw options and the Facility was undrawn at closing, including the $150.0 million term loan, which was repaid in full at closing with available cash. Concurrently with the closing of the Facility, the Operating Partnership repaid its $39.0 million unsecured term loan with available cash. |
Organization and Basis of Pre30
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation policy | The consolidated financial statements of the Company include the consolidated financial position and results of operations of the Company, the Operating Partnership, the Finance Partnership, Kilroy Services, LLC (“KSLLC”), 100 First LLC, 303 Second LLC, Redwood LLC and all of our wholly-owned and controlled subsidiaries. The consolidated financial statements of the Operating Partnership include the consolidated financial position and results of operations of the Operating Partnership, the Finance Partnership, KSLLC, 100 First LLC, 303 Second LLC, Redwood LLC and all wholly-owned and controlled subsidiaries of the Operating Partnership. All intercompany balances and transactions have been eliminated in the consolidated financial statements. |
Basis of accounting | The accompanying interim financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The interim financial statements for the Company and the Operating Partnership should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2016 . |
New accounting pronouncements | Adoption of New Accounting Pronouncements Effective January 1, 2017, the Company adopted FASB ASU No. 2017-01 (“ASU 2017-01”) which clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework provides a screen for determining whether an integrated set of assets is a business combination or an asset acquisition and clarifies that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar assets, the set of assets and activities is deemed not to meet the definition of a business. As a result of our adoption of the guidance, which we adopted on a prospective basis, the Company expects that most of our future acquisitions of operating properties and development properties that were previously accounted for as business combinations will instead be accounted for as asset acquisitions under the new guidance. In addition, we expect that most of the transaction costs associated with these future acquisitions will be capitalized as part of the purchase price of the acquisition instead of being expensed as incurred to acquisition-related expenses. The Company did not have any acquisitions of operating properties during the six months ended June 30, 2017 . Also effective January 1, 2017, the Company adopted ASU No. 2016-18 (“ASU 2016-18”) which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted ASU 2016-18 on a retrospective basis. Therefore, amounts generally described as restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Company’s consolidated statements of cash flows for the six months ended June 30, 2017 and 2016 . As a result of the adoption of ASU 2016-18, the change in restricted cash is no longer presented as a separate line item within cash flows from investing activities on the Company’s consolidated statements of cash flows since such balances are now included in total cash at both the beginning and end of the reporting period. As a result, for the six months ended June 30, 2016 , the Company had net cash used in investing activities of $39.1 million instead of net cash used in investing activities of $304.5 million as previously reported since the Company had $258.1 million of restricted cash at June 30, 2016 that was held at qualified intermediaries to facilitate potential future Section1031 Exchanges. In addition, effective January 1, 2017, the Company adopted ASU No. 2016-09 (“ASU 2016-09”) which simplified several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The adoption of this guidance did not have an impact on our consolidated financial statements or notes to our consolidated financial statements. Recently Issued Accounting Pronouncements ASU No. 2016-02 “Leases (Topic 842)” On February 25, 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”) to amend the accounting guidance for leases. The accounting applied by a lessor is largely unchanged under ASU 2016-02. However, the standard requires lessees to recognize lease assets and lease liabilities for leases classified as operating leases on the balance sheet. Lessees will recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it will recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. We are currently conducting our evaluation of the impact of the guidance on our consolidated financial statements and have an active project team working on the evaluation and implementation of the guidance. We currently believe that the adoption of the standard will not significantly change the accounting for operating leases on our consolidated balance sheets where we are the lessor, and that such leases will be accounted for in a similar method to existing standards with the underlying leased asset being reported and recognized as a real estate asset. We currently expect that certain non-lease components will need to be accounted for separately from the lease components, with the lease components continuing to be recognized on a straight-line basis over the term of the lease and certain non-lease components (such as common area maintenance and provision of utilities) being accounted for under the new revenue recognition guidance in ASU 2014-09 discussed below, even when revenue for such non-lease components is not separately stipulated in the lease. In addition, under ASU 2016-02, lessors will only be permitted to capitalize and amortize incremental direct leasing costs. As a result, we expect that upon the adoption of the standard, we will no longer be able to capitalize and amortize certain leasing related costs and instead will expense these costs as incurred. We currently expect this could have a material impact to the Company’s results of operations upon adoption of the standard. For leases where we are the lessee, specifically for our ground leases, we currently believe that the adoption of the standard will significantly change the accounting on our consolidated balance sheets since both existing ground leases and any future ground leases will be required to be recorded on the Company’s consolidated balance sheets as an obligation of the Company. We currently believe that existing ground leases executed before the January 1, 2019 adoption date will continue to be accounted for as operating leases and will not have a material impact on our recognition of ground lease expense or our results of operations. However, we believe that we will be required to recognize a right of use asset and a lease liability on our consolidated balance sheets equal to the present value of the minimum lease payments required in accordance with each ground lease. As of June 30, 2017 , our future undiscounted minimum rental payments under these leases totaled $253.9 million , with several of the leases containing provisions for rental payments to fluctuate based on fair market value and operating income measurements with expirations through 2093. In addition, we currently believe that for new ground leases entered into after the adoption date of the new standard, such leases could be required to be accounted for as a financing type lease, resulting in ground lease expense recorded using the effective interest method instead of on a straight-line basis over the term of the lease. This could have a significant impact on our results of operations if we enter into material new ground leases after the date of adoption since ground lease expense calculated using the effective interest method results in an increased amount of ground lease expense in the earlier years of a ground lease as compared to the current straight-line method. We will adopt the guidance on a modified retrospective basis as required by ASU 2016-02. We are in the process of evaluating whether we will elect to apply the practical expedients identified in the standard but currently believe that we may do so. ASU No. 2014-09 “ Revenue From Contracts with Customers (Topic 606)” In May 2014, the FASB issued ASU 2014-09 “Revenue From Contracts with Customers (Topic 606)” (“ASU 2014-09”). The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue from contracts with customers and will supersede most of the existing revenue recognition guidance. On May 9, 2016 and December 21, 2016, the FASB issued ASU No. 2016-12 and ASU No. 2016-20, which provides practical expedients, technical corrections, and improvements for certain aspects of ASU No. 2014-09. Public business entities may elect to adopt the amendments as of the original effective date; however, adoption is required for annual reporting periods beginning after December 15, 2017. We are currently conducting our evaluation of the impact of the guidance on our consolidated financial statements and we have an active project team working on evaluation and implementation of the guidance. We have been compiling an inventory of the sources of revenue that the Company expects will be impacted by ASU 2014-09. Specifically, we have evaluated the impact on the timing of gain recognition for dispositions but currently do not believe there will be a material impact to our consolidated financial statements for dispositions given the simplicity of the Company’s historical disposition transactions. In addition, we currently believe that certain non-lease components of revenue from leases (upon the adoption of ASU 2016-02 on January 1, 2019) and parking revenue may be impacted by the adoption of ASU 2014-09. We are in the process of evaluating the impact of the standard but currently believe the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. Other Recently Issued Pronouncements On May 10, 2017, the FASB issued ASU No. 2017-09 “Compensation - Stock Compensation (Topic 718)” to clarify the scope of modification accounting. Under the guidance, an entity will not apply modification accounting to a share-based payment award if the award’s fair value, vesting conditions, and classification as an equity or liability instrument remain the same immediately before and after the change. The guidance is effective for annual periods beginning after December 15, 2017 and early adoption is permitted. The Company does not currently anticipate that the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements. On February 22, 2017, the FASB issued ASU No. 2017-05 “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)” (“ASU 2017-05”) to provide guidance and clarify the scope of the original guidance within Subtopic 610-20 “Gains and Losses from the Derecognition of Nonfinancial Assets” that was issued in connection with ASU 2014-09, which provided guidance for recognizing gains and losses from the transfer of nonfinancial assets in transactions with noncustomers. ASU 2017-05 additionally adds guidance pertaining to the partial sales of real estate and clarifies that nonfinancial assets within the scope of Accounting Standards Codification Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. ASU 2017-05 is effective for fiscal years beginning after December 15, 2017, with early application permitted for fiscal years beginning after December 15, 2016. We are currently evaluating the impact of ASU 2017-05 on our consolidated financial statements and currently do not anticipate that the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements. On August 26, 2016, the FASB issued ASU No. 2016-15 (“ASU 2016-15”) to provide guidance for areas where there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not currently anticipate that the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements. On June 16, 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”) to amend the accounting for credit losses for certain financial instruments. Under the new guidance, an entity recognizes its estimate of expected credit losses as an allowance, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company does not currently anticipate that the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements. On January 5, 2016, the FASB issued ASU No. 2016-01 (“ASU 2016-01”) to amend the accounting guidance on the classification and measurement of financial instruments. The standard requires that all investments in equity securities, including other ownership interests, are carried at fair value through net income. This requirement does not apply to investments that qualify for equity method accounting or to those that result in consolidation of the investee or for which the entity has elected the predictability exception to fair value measurement. Additionally, the standard requires that the portion of the total fair value change caused by a change in instrument-specific credit risk for financial liabilities for which the fair value option has been elected would be recognized in other comprehensive income. Any accumulated amount remaining in other comprehensive income is reclassified to earnings when the liability is extinguished. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017. The Company does not currently anticipate that the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements. |
Organization and Basis of Pre31
Organization and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of real estate properties | As of June 30, 2017 , the following properties were excluded from our stabilized portfolio. We did not have any redevelopment properties at June 30, 2017 . Number of Properties/Projects Estimated Rentable Square Feet (1) Development projects under construction (2) 4 1,800,000 ________________________ (1) Estimated rentable square feet upon completion. (2) Development projects under construction also include 96,000 square feet of retail space and 237 residential units in addition to the estimated office rentable square feet noted above. Our stabilized portfolio of operating properties was comprised of the following properties at June 30, 2017 : Number of Buildings Rentable Square Feet (unaudited) Number of Tenants Percentage Occupied (unaudited) Percentage Leased (unaudited) Stabilized Office Properties 111 14,394,534 543 93.9 % 96.0 % Number of Number of Units Percentage Occupied (unaudited) Percentage Leased (unaudited) Stabilized Residential Property 1 200 77.0 % 82.0 % |
Dispositions (Tables)
Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of dispositions and real estate assets held for sale | The following table summarizes the operating property sold during the six months ended June 30, 2017 . Location Property Type Month of Disposition Number of Buildings Rentable Square Feet Sales Price (1) (in millions) 5717 Pacific Center Boulevard, San Diego, CA (2) Office January 1 67,995 $ 12.1 Total Dispositions 1 67,995 $ 12.1 ________________________ (1) Represents gross sales price before the impact of broker commissions and closing costs. (2) This property was classified as held for sale at December 31, 2016 . |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Current Receivables, net | Current receivables, net is primarily comprised of contractual rents and other lease-related obligations due from tenants. The balance consisted of the following as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Current receivables $ 15,161 $ 15,172 Allowance for uncollectible tenant receivables (1,458 ) (1,712 ) Current receivables, net $ 13,703 $ 13,460 |
Deferred Rent Receivables, net | Deferred rent receivables, net consisted of the following as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Deferred rent receivables $ 236,038 $ 220,501 Allowance for deferred rent receivables (2,611 ) (1,524 ) Deferred rent receivables, net $ 233,427 $ 218,977 |
Prepaid Expenses and Other As34
Prepaid Expenses and Other Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and other assets, net | Prepaid expenses and other assets, net consisted of the following at June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Furniture, fixtures and other long-lived assets, net $ 39,693 $ 40,395 Notes receivable (1) 19,788 19,439 Prepaid expenses & deposits 39,413 10,774 Total prepaid expenses and other assets, net $ 98,894 $ 70,608 _______________ (1) Approximately $15.1 million of our notes receivable are secured by real estate. |
Secured and Unsecured Debt of35
Secured and Unsecured Debt of the Operating Partnership (Tables) - Kilroy Realty, L.P. [Member] | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument [Line Items] | |
Unsecured revolving credit facility | The following table summarizes the balance and terms of our unsecured revolving credit facility as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Outstanding borrowings $ — $ — Remaining borrowing capacity 600,000 600,000 Total borrowing capacity (1) $ 600,000 $ 600,000 Interest rate (2) 2.27 % 1.82 % Facility fee-annual rate (3) 0.200% Maturity date July 2019 ________________________ (1) We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility. (2) The interest rate on our unsecured revolving credit facility is based on an annual rate of LIBOR plus 1.050% . (3) Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of June 30, 2017 and December 31, 2016 , $2.6 million and $3.3 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured revolving credit facility, which are included in prepaid expenses and other assets, net on our consolidated balance sheets. The following table summarizes the balance and terms of our unsecured term loan facility as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Outstanding borrowings (1) $ 150,000 $ 150,000 Interest rate (2) 2.36 % 1.85 % Maturity date July 2019 ________________________ (1) As of June 30, 2017 and December 31, 2016 , $0.5 million and $0.7 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured term loan facility. (2) Our unsecured term loan facility interest rate was calculated based on an annual rate of LIBOR plus 1.150% . |
Schedule of debt maturities | The following table summarizes the stated debt maturities and scheduled amortization payments of our issued and outstanding debt, excluding unamortized debt discounts, premiums and deferred financing costs, as of June 30, 2017 : Year (in thousands) Remaining 2017 $ 3,072 2018 451,669 2019 265,309 2020 255,137 2021 5,342 Thereafter 1,599,023 Total (1) $ 2,579,552 ________________________ (1) Includes gross principal balance of outstanding debt before the effect of the following at June 30, 2017 : $12.0 million of unamortized deferred financing costs, $6.2 million of unamortized discounts for the unsecured senior notes and $3.5 million of unamortized premiums for the secured debt. |
Capitalized interest and loan fees | The following table sets forth gross interest expense, including debt discount/premium and deferred financing cost amortization, net of capitalized interest, for the three and six months ended June 30, 2017 and 2016 . The interest expense capitalized was recorded as a cost of development and increased the carrying value of undeveloped land and construction in progress. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Gross interest expense $ 28,731 $ 26,668 $ 56,246 $ 52,843 Capitalized interest and deferred financing costs (10,758 ) (12,284 ) (20,921 ) (26,630 ) Interest expense $ 17,973 $ 14,384 $ 35,325 $ 26,213 |
Partners' Capital of the Oper36
Partners' Capital of the Operating Partnership (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Partners' Capital Notes [Abstract] | |
Schedule of Common Units Outstanding | The following table sets forth the number of common units held by the Company and the number of common units held by non-affiliated investors and certain of our executive officers and directors in the form of noncontrolling common units as well as the ownership interest held on each respective date: June 30, 2017 December 31, 2016 June 30, 2016 Company owned common units in the Operating Partnership 98,351,217 93,219,439 92,254,768 Company owned general partnership interest 97.9 % 97.5 % 97.2 % Noncontrolling common units of the Operating Partnership 2,077,193 2,381,543 2,631,276 Ownership interest of noncontrolling interest 2.1 % 2.5 % 2.8 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based payment award, restricted stock units, valuation assumptions | The following table summarizes the assumptions utilized in the Monte Carlo simulation pricing model: Fair Value Assumptions Fair value per share at February 24, 2017 $80.89 Expected share price volatility 21.00% Risk-free interest rate 1.39% Remaining expected life 2.8 years |
Fair Value Measurements and D38
Fair Value Measurements and Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value of the company's marketable securities | The following table sets forth the fair value of our marketable securities as of June 30, 2017 and December 31, 2016 : Fair Value (Level 1) (1) June 30, 2017 December 31, 2016 Description (in thousands) Marketable securities (2) $ 16,010 $ 14,773 ________________________ (1) Based on quoted prices in active markets for identical securities. (2) The marketable securities are held in a limited rabbi trust. |
Fair value adjustment of marketable securities and deferred compensation plan liability | The following table sets forth the net gain on marketable securities recorded during the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Description (in thousands) (in thousands) Net gain on marketable securities $ 512 $ 249 $ 1,183 $ 386 |
Carrying value and fair value of company's remaining financial assets and liabilities | The following table sets forth the carrying value and the fair value of our other financial instruments as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 Carrying Fair (1) Carrying Fair (1) (in thousands) Liabilities Secured debt, net $ 467,758 $ 467,782 $ 472,772 $ 469,234 Unsecured debt, net 2,097,083 2,172,095 1,847,351 1,900,487 ________________________ (1) Fair value calculated using Level II inputs, which are based on model-derived valuations in which significant inputs and significant value drivers are observable in active markets. |
Net Income Available to Commo39
Net Income Available to Common Stockholders Per Share of the Company (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net income available to common stockholders | The following table reconciles the numerator and denominator in computing the Company’s basic and diluted per-share computations for net income available to common stockholders for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except share and per share amounts) Numerator: Net income attributable to Kilroy Realty Corporation $ 31,448 $ 32,847 $ 64,973 $ 207,155 Total preferred dividends (1,615 ) (3,312 ) (8,811 ) (6,625 ) Allocation to participating securities (1) (511 ) (423 ) (959 ) (818 ) Numerator for basic and diluted net income available to common stockholders $ 29,322 $ 29,112 $ 55,203 $ 199,712 Denominator: Basic weighted average vested shares outstanding 98,275,471 92,209,955 97,834,255 92,217,238 Effect of dilutive securities 551,907 614,831 593,090 566,827 Diluted weighted average vested shares and common share equivalents outstanding 98,827,378 92,824,786 98,427,345 92,784,065 Basic earnings per share: Net income available to common stockholders per share $ 0.30 $ 0.32 $ 0.56 $ 2.17 Diluted earnings per share: Net income available to common stockholders per share $ 0.30 $ 0.31 $ 0.56 $ 2.15 ________________________ (1) Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. |
Net Income Available to Commo40
Net Income Available to Common Unitholders Per Unit of the Operating Partnership (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Net Income Available To Common Unitholders [Line Items] | |
Net income (loss) available to common unitholders | The following table reconciles the numerator and denominator in computing the Company’s basic and diluted per-share computations for net income available to common stockholders for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except share and per share amounts) Numerator: Net income attributable to Kilroy Realty Corporation $ 31,448 $ 32,847 $ 64,973 $ 207,155 Total preferred dividends (1,615 ) (3,312 ) (8,811 ) (6,625 ) Allocation to participating securities (1) (511 ) (423 ) (959 ) (818 ) Numerator for basic and diluted net income available to common stockholders $ 29,322 $ 29,112 $ 55,203 $ 199,712 Denominator: Basic weighted average vested shares outstanding 98,275,471 92,209,955 97,834,255 92,217,238 Effect of dilutive securities 551,907 614,831 593,090 566,827 Diluted weighted average vested shares and common share equivalents outstanding 98,827,378 92,824,786 98,427,345 92,784,065 Basic earnings per share: Net income available to common stockholders per share $ 0.30 $ 0.32 $ 0.56 $ 2.17 Diluted earnings per share: Net income available to common stockholders per share $ 0.30 $ 0.31 $ 0.56 $ 2.15 ________________________ (1) Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. |
Kilroy Realty, L.P. [Member] | |
Net Income Available To Common Unitholders [Line Items] | |
Net income (loss) available to common unitholders | The following table reconciles the numerator and denominator in computing the Operating Partnership’s basic and diluted per-unit computations for net income available to common unitholders for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except unit and per unit amounts) Numerator: Net income attributable to Kilroy Realty, L.P. $ 31,971 $ 33,590 $ 66,025 $ 211,423 Total preferred distributions (1,615 ) (3,312 ) (8,811 ) (6,625 ) Allocation to participating securities (1) (511 ) (423 ) (959 ) (818 ) Numerator for basic and diluted net income available to common unitholders $ 29,845 $ 29,855 $ 56,255 $ 203,980 Denominator: Basic weighted average vested units outstanding 100,352,664 94,841,231 100,024,000 94,514,876 Effect of dilutive securities 551,907 614,831 593,090 566,827 Diluted weighted average vested units and common unit equivalents outstanding 100,904,571 95,456,062 100,617,090 95,081,703 Basic earnings per unit: Net income available to common unitholders per unit $ 0.30 $ 0.31 $ 0.56 $ 2.16 Diluted earnings per unit: Net income available to common unitholders per unit $ 0.30 $ 0.31 $ 0.56 $ 2.15 ________________________ (1) Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information of the Company (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flows | Supplemental cash flow information is included as follows (in thousands): Six Months Ended June 30, 2017 2016 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $20,219 and $25,674 as of June 30, 2017 and 2016, respectively $ 30,977 $ 25,787 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development properties $ 66,967 $ 50,246 Tenant improvements funded directly by tenants $ 9,221 $ 10,713 Assumption of accrued liabilities in connection with acquisitions $ — $ 4,911 NON-CASH FINANCING TRANSACTIONS: Accrual of dividends and distributions payable to common stockholders and common unitholders $ 43,305 $ 36,093 Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders $ 797 $ 1,656 Exchange of common units of the Operating Partnership into shares of the Company’s common stock $ 10,939 $ 39 Issuance of common units of the Operating Partnership in connection with an acquisition $ — $ 48,033 Secured debt assumed by buyers in connection with land dispositions $ — $ 2,322 |
Reconciliation of cash and cash equivalents and restricted cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, 2017 2016 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 193,418 $ 56,508 Restricted cash at beginning of period 56,711 696 Cash and cash equivalents and restricted cash at beginning of period $ 250,129 $ 57,204 Cash and cash equivalents at end of period $ 387,616 $ 26,332 Restricted cash at end of period 8,249 266,158 Cash and cash equivalents and restricted cash at end of period $ 395,865 $ 292,490 |
Reconciliation of cash and cash equivalents and restricted cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, 2017 2016 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 193,418 $ 56,508 Restricted cash at beginning of period 56,711 696 Cash and cash equivalents and restricted cash at beginning of period $ 250,129 $ 57,204 Cash and cash equivalents at end of period $ 387,616 $ 26,332 Restricted cash at end of period 8,249 266,158 Cash and cash equivalents and restricted cash at end of period $ 395,865 $ 292,490 |
Supplemental Cash Flow Inform42
Supplemental Cash Flow Information of the Operating Partnership (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Significant Noncash Transactions [Line Items] | |
Schedule of supplemental cash flows | Supplemental cash flow information is included as follows (in thousands): Six Months Ended June 30, 2017 2016 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $20,219 and $25,674 as of June 30, 2017 and 2016, respectively $ 30,977 $ 25,787 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development properties $ 66,967 $ 50,246 Tenant improvements funded directly by tenants $ 9,221 $ 10,713 Assumption of accrued liabilities in connection with acquisitions $ — $ 4,911 NON-CASH FINANCING TRANSACTIONS: Accrual of dividends and distributions payable to common stockholders and common unitholders $ 43,305 $ 36,093 Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders $ 797 $ 1,656 Exchange of common units of the Operating Partnership into shares of the Company’s common stock $ 10,939 $ 39 Issuance of common units of the Operating Partnership in connection with an acquisition $ — $ 48,033 Secured debt assumed by buyers in connection with land dispositions $ — $ 2,322 |
Reconciliation of cash and cash equivalents and restricted cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, 2017 2016 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 193,418 $ 56,508 Restricted cash at beginning of period 56,711 696 Cash and cash equivalents and restricted cash at beginning of period $ 250,129 $ 57,204 Cash and cash equivalents at end of period $ 387,616 $ 26,332 Restricted cash at end of period 8,249 266,158 Cash and cash equivalents and restricted cash at end of period $ 395,865 $ 292,490 |
Reconciliation of cash and cash equivalents and restricted cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, 2017 2016 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 193,418 $ 56,508 Restricted cash at beginning of period 56,711 696 Cash and cash equivalents and restricted cash at beginning of period $ 250,129 $ 57,204 Cash and cash equivalents at end of period $ 387,616 $ 26,332 Restricted cash at end of period 8,249 266,158 Cash and cash equivalents and restricted cash at end of period $ 395,865 $ 292,490 |
Kilroy Realty, L.P. [Member] | |
Other Significant Noncash Transactions [Line Items] | |
Schedule of supplemental cash flows | Supplemental cash flow information is included as follows (in thousands): Six Months Ended June 30, 2017 2016 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $20,219 and $25,674 as of June 30, 2017 and 2016, respectively $ 30,977 $ 25,787 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development properties $ 66,967 $ 50,246 Tenant improvements funded directly by tenants $ 9,221 $ 10,713 Assumption of accrued liabilities in connection with acquisitions $ — $ 4,911 NON-CASH FINANCING TRANSACTIONS: Accrual of distributions payable to common unitholders $ 43,305 $ 36,093 Accrual of distributions payable to preferred unitholders $ 797 $ 1,656 Issuance of common units of the Operating Partnership in connection with an acquisition $ — $ 48,033 Secured debt assumed by buyers in connection with land dispositions $ — $ 2,322 |
Reconciliation of cash and cash equivalents and restricted cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, 2017 2016 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 193,418 $ 56,508 Restricted cash at beginning of period 56,711 696 Cash and cash equivalents and restricted cash at beginning of period $ 250,129 $ 57,204 Cash and cash equivalents at end of period $ 387,616 $ 26,332 Restricted cash at end of period 8,249 266,158 Cash and cash equivalents and restricted cash at end of period $ 395,865 $ 292,490 |
Reconciliation of cash and cash equivalents and restricted cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, 2017 2016 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 193,418 $ 56,508 Restricted cash at beginning of period 56,711 696 Cash and cash equivalents and restricted cash at beginning of period $ 250,129 $ 57,204 Cash and cash equivalents at end of period $ 387,616 $ 26,332 Restricted cash at end of period 8,249 266,158 Cash and cash equivalents and restricted cash at end of period $ 395,865 $ 292,490 |
Organization and Basis of Pre43
Organization and Basis of Presentation (Details) - Jun. 30, 2017 | Total | number_of_residential_units | tenant | ft² | project | property_units | building | property |
Stabilized office properties [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Number of Buildings | 111 | 4 | ||||||
Rentable Square Feet (unaudited) | 14,394,534 | |||||||
Number of Tenants | tenant | 543 | |||||||
Percentage Occupied (unaudited) | 93.90% | |||||||
Percentage Leased (unaudited) | 96.00% | |||||||
Stabilized residential properties [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Number of Buildings | building | 1 | |||||||
Percentage Occupied (unaudited) | 77.00% | |||||||
Percentage Leased (unaudited) | 82.00% | |||||||
Number of Units | property_units | 200 | |||||||
Development projects under construction [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Number of Buildings | 4 | 3 | ||||||
Rentable Square Feet (unaudited) | 1,800,000 | |||||||
Number of residential units | number_of_residential_units | 237 | |||||||
Retail site [Member] | Development projects under construction [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rentable Square Feet (unaudited) | 96,000 |
Organization and Basis of Pre44
Organization and Basis of Presentation (Details Textual) $ in Thousands | 6 Months Ended | |||||||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017ft² | Jun. 30, 2017project | Jun. 30, 2017building | Jun. 30, 2017a | Jun. 30, 2017VIE | Jun. 30, 2017property | Dec. 31, 2016USD ($)VIE | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Lease-up properties occupancy percentage | 95.00% | |||||||||
Common general partnership interest in the Operating Partnership | 97.90% | 97.20% | 97.50% | |||||||
Common limited partnership interest in the Operating Partnership | 2.10% | 2.80% | 2.50% | |||||||
Number of VIEs | VIE | 2 | 3 | ||||||||
VIE assets | $ 431,300 | $ 654,300 | ||||||||
VIE liabilities | 152,600 | 166,100 | ||||||||
Noncontrolling interest in VIE | 128,706 | 130,732 | ||||||||
Net cash (used in) provided by investing activities | $ (216,018) | $ (39,069) | ||||||||
Restricted cash | 258,100 | |||||||||
Ground leases, future minimum payments receivable | 253,900 | |||||||||
101 First LLC and 303 Second LLC [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Common general partnership interest in the Operating Partnership | 56.00% | |||||||||
Noncontrolling interest in VIE | 122,400 | 124,300 | ||||||||
Kilroy Realty Finance, Inc. [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Common general partnership interest in the Finance Partnership (percentage) | 1.00% | |||||||||
Kilroy Realty, L.P. [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Percentage of limited partnership interest owned by Operating Partnership | 99.00% | |||||||||
Net cash (used in) provided by investing activities | $ (216,018) | $ (39,069) | ||||||||
Redwood LLC [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Common general partnership interest in the Operating Partnership | 93.00% | |||||||||
Office properties [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Rentable Square Feet (unaudited) | ft² | 14,394,534 | |||||||||
Number of Buildings | 111 | 4 | ||||||||
Area of land | a | 52 | |||||||||
Office properties [Member] | Washington [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Number of Buildings | property | 12 | |||||||||
Development properties [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Rentable Square Feet (unaudited) | ft² | 1,800,000 | |||||||||
Number of Buildings | 4 | 3 | ||||||||
Development properties [Member] | San Francisco, California [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Rentable Square Feet (unaudited) | ft² | 365,359 | |||||||||
Development sites [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Number of Buildings | project | 6 | |||||||||
Properties and development projects [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Property ownership percentage | 100.00% | |||||||||
Real estate investment [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
VIE assets | $ 386,700 | $ 588,600 | ||||||||
Scenario, Previously Reported [Member] | ||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||
Net cash (used in) provided by investing activities | $ 304,500 |
Dispositions (Details)
Dispositions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)ft²property | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)ft²property | Jun. 30, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gains on sales of depreciable operating properties | $ 0 | $ 0 | $ 2,257 | $ 145,990 |
5717 Pacific Center Boulevard, San Diego, CA [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of Buildings | property | 1 | 1 | ||
Rentable Square Feet | ft² | 67,995 | 67,995 | ||
Sales Price (1) (in millions) | $ 12,100 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current Receivables, net | ||
Current receivables | $ 15,161 | $ 15,172 |
Allowance for uncollectible tenant receivables | (1,458) | (1,712) |
Current receivables, net | 13,703 | 13,460 |
Deferred Rent Receivables, net | ||
Deferred rent receivables | 236,038 | 220,501 |
Allowance for deferred rent receivables | (2,611) | (1,524) |
Deferred rent receivables, net | $ 233,427 | $ 218,977 |
Prepaid Expenses and Other As47
Prepaid Expenses and Other Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Furniture, fixtures and other long-lived assets, net | $ 39,693 | $ 40,395 |
Notes receivable (1) | 19,788 | 19,439 |
Prepaid expenses & deposits | 39,413 | 10,774 |
Total prepaid expenses and other assets, net | 98,894 | $ 70,608 |
Secured debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes receivable (1) | $ 15,100 |
Secured and Unsecured Debt of48
Secured and Unsecured Debt of the Operating Partnership - Unsecured Senior Notes - Private Placement (Details) - Kilroy Realty, L.P. [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Feb. 17, 2017 | |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,579,552,000 | |
Unsecured Debt [Member] | Three point three five percent Series A Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 75,000,000 | $ 175,000,000 |
Stated coupon rate | 3.35% | |
Unsecured Debt [Member] | Three point four five percent Series B Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 175,000,000 | $ 75,000,000 |
Stated coupon rate | 3.45% | |
Unsecured Debt [Member] | Series A and B Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Operating partnership, payment percent | 5.00% | |
Operating partnership, total payment percentage | 100.00% |
Secured and Unsecured Debt of49
Secured and Unsecured Debt of the Operating Partnership - Unsecured Revolving Credit Facility and Term Loan Facility (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | Jul. 24, 2017 | |
Terms of the Credit Facility | |||
Unsecured debt, net (Notes 5 and 11) | $ 2,097,083,000 | $ 1,847,351,000 | |
Kilroy Realty, L.P. [Member] | |||
Terms of the Credit Facility | |||
Unsecured debt, net (Notes 5 and 11) | 2,097,083,000 | 1,847,351,000 | |
Unamortized deferred financing costs | 12,000,000 | ||
Kilroy Realty, L.P. [Member] | Revolving Credit Facility [Member] | |||
Terms of the Credit Facility | |||
Outstanding borrowings | 0 | 0 | |
Remaining borrowing capacity | 600,000,000 | 600,000,000 | |
Total borrowing capacity (1) | $ 600,000,000 | $ 600,000,000 | |
Interest rate (percent) | 2.27% | 1.82% | |
Facility fee-annual rate (percent) | 0.20% | 0.20% | |
Maturity date | Jul. 1, 2019 | Jul. 1, 2019 | |
Contingent additional borrowings | $ 311,000,000 | ||
Variable rate (percent) | 1.05% | 1.05% | |
Unamortized deferred financing costs | $ 2,600,000 | $ 3,300,000 | |
Subsequent event [Member] | Kilroy Realty, L.P. [Member] | Revolving Credit Facility [Member] | |||
Terms of the Credit Facility | |||
Total borrowing capacity (1) | $ 750,000,000 | ||
$39 Million Unsecured Term Loan [Member] | Kilroy Realty, L.P. [Member] | Line of Credit [Member] | |||
Terms of the Credit Facility | |||
Unsecured debt, net (Notes 5 and 11) | $ 39,000,000 | $ 39,000,000 | |
$39 Million Unsecured Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Kilroy Realty, L.P. [Member] | Line of Credit [Member] | |||
Terms of the Credit Facility | |||
Variable rate (percent) | 1.15% | 1.15% | |
Unamortized deferred financing costs | $ 100,000 | $ 200,000 | |
$150 Million Term Loan Facility [Member] | Kilroy Realty, L.P. [Member] | Line of Credit [Member] | |||
Terms of the Credit Facility | |||
Maturity date | Jul. 1, 2019 | Jul. 1, 2019 | |
Unsecured debt, net (Notes 5 and 11) | $ 150,000,000 | $ 150,000,000 | |
Unamortized deferred financing costs | $ 500,000 | $ 700,000 | |
$150 Million Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Kilroy Realty, L.P. [Member] | Line of Credit [Member] | |||
Terms of the Credit Facility | |||
Variable rate (percent) | 1.15% |
Secured and Unsecured Debt of50
Secured and Unsecured Debt of the Operating Partnership - Unsecured Term Loan Facility (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 2,097,083,000 | $ 1,847,351,000 |
Kilroy Realty, L.P. [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | 2,097,083,000 | 1,847,351,000 |
Unamortized deferred financing costs | 12,000,000 | |
Line of Credit [Member] | $150 Million Term Loan Facility [Member] | Kilroy Realty, L.P. [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 150,000,000 | $ 150,000,000 |
Debt instrument, interest rate, effective percentage | 2.36% | 1.85% |
Maturity date | Jul. 1, 2019 | Jul. 1, 2019 |
Unamortized deferred financing costs | $ 500,000 | $ 700,000 |
Line of Credit [Member] | $150 Million Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Kilroy Realty, L.P. [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate (percent) | 1.15% | |
Line of Credit [Member] | $39 Million Unsecured Term Loan [Member] | Kilroy Realty, L.P. [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 39,000,000 | 39,000,000 |
Line of Credit [Member] | $39 Million Unsecured Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Kilroy Realty, L.P. [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | $ 100,000 | $ 200,000 |
Variable rate (percent) | 1.15% | 1.15% |
Secured and Unsecured Debt of51
Secured and Unsecured Debt of the Operating Partnership - Debt Maturities (Details) - Kilroy Realty, L.P. [Member] $ in Thousands | Jun. 30, 2017USD ($) |
Stated debt maturities and scheduled amortization payments, excluding debt discounts | |
Remaining 2,017 | $ 3,072 |
2,018 | 451,669 |
2,019 | 265,309 |
2,020 | 255,137 |
2,021 | 5,342 |
Thereafter | 1,599,023 |
Total debt | 2,579,552 |
Unamortized debt issuance costs | (12,000) |
Unsecured Senior Notes [Member] | |
Stated debt maturities and scheduled amortization payments, excluding debt discounts | |
Unamortized discount | (6,200) |
Secured debt [Member] | |
Stated debt maturities and scheduled amortization payments, excluding debt discounts | |
Unamortized premium | $ 3,500 |
Secured and Unsecured Debt of52
Secured and Unsecured Debt of the Operating Partnership - Capitalized Interest and Loan Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Capitalized Interest and Loan Fees [Line Items] | ||||
Interest expense | $ 17,973 | $ 14,384 | $ 35,325 | $ 26,213 |
Kilroy Realty, L.P. [Member] | ||||
Capitalized Interest and Loan Fees [Line Items] | ||||
Gross interest expense | 28,731 | 26,668 | 56,246 | 52,843 |
Capitalized interest and deferred financing costs | (10,758) | (12,284) | (20,921) | (26,630) |
Interest expense | $ 17,973 | $ 14,384 | $ 35,325 | $ 26,213 |
Noncontrolling Interests on t53
Noncontrolling Interests on the Company's Consolidated Financial Statements - Common Units of the Operating Partnership (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Noncontrolling Interest [Line Items] | |||
Common general partnership interest in the Operating Partnership | 97.90% | 97.50% | 97.20% |
Common limited partnership interest in the Operating Partnership | 2.10% | 2.50% | 2.80% |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Aggregate value upon redemption of outstanding noncontrolling common units | $ 158.6 | $ 174.9 | |
Brannan St Project [Member] | |||
Noncontrolling Interest [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | ||
Kilroy Realty, L.P. [Member] | Capital Units [Member] | |||
Noncontrolling Interest [Line Items] | |||
Common units outstanding held by common limited partners | 2,077,193 | 2,381,543 | 2,631,276 |
Stockholders' Equity of the C54
Stockholders' Equity of the Company (Details) - USD ($) | Mar. 30, 2017 | Jan. 13, 2017 | Dec. 30, 2016 | Jan. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2014 |
Common Stock of the Company [Abstract] | ||||||||||
Common stock, shares issued (in shares) | 4,427,500 | 98,351,217 | 98,351,217 | 93,219,439 | ||||||
Net proceeds from issuance of common stock (Note 7) | $ 308,800,000 | $ 308,832,000 | $ 0 | |||||||
At the market stock offering aggregate gross sales price of common stock | $ 300,000,000 | |||||||||
Payments of special cash dividends | $ 184,300,000 | |||||||||
Dividends declared per common share (in dollars per share) | $ 1.90 | $ 0.425 | $ 0.375000 | $ 0.8 | $ 0.725 | |||||
Payment of special dividend | $ 36,400,000 | $ 255,292,000 | $ 65,935,000 | |||||||
Series G Cumulative Redeemable Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, redeemed (in shares) | 4,000,000 | 0 | 0 | 4,000,000 | ||||||
Preferred stock dividend rate percentage | 6.875% | 0.00% | 6.875% | |||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | |||||||||
Preferred stock liquidation preference | $ 100,000,000 | $ 0 | $ 0 | $ 100,000,000 | ||||||
Write off of issuance costs | $ 3,800,000 | |||||||||
Common Stock [Member] | Issuance of Equity - at the market offering [Member] | ||||||||||
Common Stock of the Company [Abstract] | ||||||||||
Common stock, shares issued (in shares) | 2,459,165 | 2,459,165 | ||||||||
At the market stock offering aggregate gross sales price of common stock | $ 182,400,000 | $ 182,400,000 | ||||||||
At the market stock offering remaining amount available for issuance | $ 117,600,000 | $ 117,600,000 |
Partners' Capital of the Oper55
Partners' Capital of the Operating Partnership (Details) - USD ($) $ in Thousands | Mar. 30, 2017 | Jan. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||
Common stock, shares issued (in shares) | 4,427,500 | 98,351,217 | 93,219,439 | ||
Net proceeds from issuance of common stock (Note 7) | $ 308,800 | $ 308,832 | $ 0 | ||
General Partners' Capital Account [Abstract] | |||||
Company owned general partnership interest | 97.90% | 97.20% | 97.50% | ||
Ownership interest of noncontrolling interest | 2.10% | 2.80% | 2.50% | ||
Series G Cumulative Redeemable Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock, redeemed (in units) | 4,000,000 | 0 | 4,000,000 | ||
Preferred stock dividend rate percentage | 6.875% | 0.00% | 6.875% | ||
Kilroy Realty, L.P. [Member] | Series G Cumulative Redeemable Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock, redeemed (in units) | 4,000,000 | ||||
Preferred stock dividend rate percentage | 6.875% | ||||
Kilroy Realty, L.P. [Member] | Capital Units [Member] | |||||
General Partners' Capital Account [Abstract] | |||||
Company owned common units in the Operating Partnership | 98,351,217 | 92,254,768 | 93,219,439 | ||
Noncontrolling common units of the Operating Partnership | 2,077,193 | 2,631,276 | 2,381,543 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Textual) $ / shares in Units, $ in Millions | Feb. 24, 2017USD ($)$ / shares | Jan. 28, 2016shares | Feb. 28, 2017USD ($)shares | Jun. 30, 2017USD ($)plan$ / sharesshares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)plan$ / sharesshares | Jun. 30, 2016USD ($)shares | Feb. 03, 2017$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of share-based incentive compensation plans | plan | 1 | 1 | ||||||
Share-based compensation expense | $ | $ 6.5 | $ 6.6 | $ 12.6 | $ 12.5 | ||||
Share-based compensation expense capitalized | $ | 1.6 | $ 1.3 | 3.7 | $ 2.5 | ||||
Share-based compensation not yet recognized | $ | $ 35.1 | $ 35.1 | ||||||
Share-based compensation not yet recognized period of recognition | 1 year 11 months | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted | 229,976 | |||||||
2017 Performance-Based RSUs [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted | 130,956 | |||||||
Percentage of shares granted | 57.00% | |||||||
Vesting period | 3 years | |||||||
Number of shares issuable per RSU | 1 | |||||||
Grant date fair value | $ | $ 10.3 | |||||||
Grant date fair value (in dollars per share) | $ / shares | $ 80.89 | |||||||
Remaining expected life, including future volatility | 5 years 7 months | |||||||
Remaining expected life | 2 years 10 months | |||||||
2017 Time-Based RSUs [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted | 99,020 | |||||||
Percentage of shares granted | 43.00% | |||||||
Vesting period | 3 years | |||||||
Closing share price (in dollars per share) | $ / shares | $ 77.16 | $ 73.30 | ||||||
Kilroy Realty 2006 Incentive Award Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for grant | 2,026,925 | 2,026,925 | ||||||
Market Measure-Based RSU Estimate of Probable [Member] | 2017 Performance-Based RSUs [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, capital shares reserved for future issuance | 130,956 | 130,956 | ||||||
Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Exercise of stock options (Note 9) (in shares) | 272,000 | 22,000 | ||||||
Share-based compensation, exercise price (in dollars per share) | $ / shares | $ 42.61 | $ 42.61 | ||||||
Share-based compensation, stock options outstanding | 39,500 | 39,500 | ||||||
Nonvested Restricted Stock Units R S U [Member] | 2017 Time-Based RSUs [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grant date fair value | $ | $ 7.5 |
Share-Based Compensation (Det57
Share-Based Compensation (Details) - 2017 Performance-Based RSUs [Member] | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date fair value (in dollars per share) | $ 80.89 |
Expected share price volatility | 21.00% |
Risk-free interest rate | 1.39% |
Remaining expected life | 2 years 10 months |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | $ 736.8 |
Accrued environmental remediation liabilities | $ 21.3 |
Fair Value Measurements and D59
Fair Value Measurements and Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair value adjustment of marketable securities and deferred compensation plan liability | |||||
Net gain on marketable securities | $ 512 | $ 249 | $ 1,183 | $ 386 | |
Fair Value (Level 1) [Member] | |||||
Assets and Liabilities Reported at Fair Value | |||||
Marketable securities | $ 16,010 | $ 16,010 | $ 14,773 |
Fair Value Measurements and D60
Fair Value Measurements and Disclosures (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Carrying Value [Member] | Secured debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | $ 467,758 | $ 472,772 |
Carrying Value [Member] | Unsecured Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | 2,097,083 | 1,847,351 |
Fair Value (Level 2) [Member] | Fair Value [Member] | Secured debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | 467,782 | 469,234 |
Fair Value (Level 2) [Member] | Fair Value [Member] | Unsecured Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | $ 2,172,095 | $ 1,900,487 |
Net Income Available to Commo61
Net Income Available to Common Stockholders Per Share of the Company (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net income attributable to Kilroy Realty Corporation | $ 31,448 | $ 32,847 | $ 64,973 | $ 207,155 |
Total preferred dividends | (1,615) | (3,312) | (8,811) | (6,625) |
Allocation to participating securities (1) | (511) | (423) | (959) | (818) |
Numerator for basic and diluted net income available to common stockholders | $ 29,322 | $ 29,112 | $ 55,203 | $ 199,712 |
Denominator: | ||||
Weighted average common shares outstanding – basic (in shares) | 98,275,471 | 92,209,955 | 97,834,255 | 92,217,238 |
Effect of dilutive securities (in shares) | 551,907 | 614,831 | 593,090 | 566,827 |
Diluted weighted average vested shares and common share equivalents outstanding (in shares) | 98,827,378 | 92,824,786 | 98,427,345 | 92,784,065 |
Basic earnings per share: | ||||
Net income available to common stockholders per share (in dollars per share) | $ 0.30 | $ 0.32 | $ 0.56 | $ 2.17 |
Diluted earnings per share: | ||||
Net income available to common stockholders per share (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.56 | $ 2.15 |
Net Income Available to Commo62
Net Income Available to Common Unitholders Per Unit of the Operating Partnership (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net income attributable to Kilroy Realty, L.P. | $ 31,448 | $ 32,847 | $ 64,973 | $ 207,155 |
Total preferred dividends | (1,615) | (3,312) | (8,811) | (6,625) |
Allocation to participating securities (1) | (511) | (423) | (959) | (818) |
Numerator for basic and diluted net income available to common stockholders | $ 29,322 | $ 29,112 | $ 55,203 | $ 199,712 |
Denominator: | ||||
Weighted average common units outstanding - basic (in units) | 98,275,471 | 92,209,955 | 97,834,255 | 92,217,238 |
Effect of dilutive securities (in units) | 551,907 | 614,831 | 593,090 | 566,827 |
Diluted weighted average vested shares and common share equivalents outstanding (in shares) | 98,827,378 | 92,824,786 | 98,427,345 | 92,784,065 |
Basic earnings per unit: | ||||
Net income available to common stockholders per share (in dollars per share) | $ 0.30 | $ 0.32 | $ 0.56 | $ 2.17 |
Diluted earnings per unit: | ||||
Net income available to common stockholders per share (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.56 | $ 2.15 |
Kilroy Realty, L.P. [Member] | ||||
Numerator: | ||||
Net income attributable to Kilroy Realty, L.P. | $ 31,971 | $ 33,590 | $ 66,025 | $ 211,423 |
Total preferred dividends | (1,615) | (3,312) | (8,811) | (6,625) |
Allocation to participating securities (1) | (511) | (423) | (959) | (818) |
Numerator for basic and diluted net income available to common stockholders | $ 29,845 | $ 29,855 | $ 56,255 | $ 203,980 |
Denominator: | ||||
Weighted average common units outstanding - basic (in units) | 100,352,664 | 94,841,231 | 100,024,000 | 94,514,876 |
Effect of dilutive securities (in units) | 551,907 | 614,831 | 593,090 | 566,827 |
Diluted weighted average vested shares and common share equivalents outstanding (in shares) | 100,904,571 | 95,456,062 | 100,617,090 | 95,081,703 |
Basic earnings per unit: | ||||
Net income available to common stockholders per share (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.56 | $ 2.16 |
Diluted earnings per unit: | ||||
Net income available to common stockholders per share (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.56 | $ 2.15 |
Supplemental Cash Flow Inform63
Supplemental Cash Flow Information of the Company (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Cash paid for interest, net of capitalized interest of $20,219 and $25,674 as of June 30, 2017 and 2016, respectively | $ 30,977 | $ 25,787 |
Interest capitalized | 20,219 | 25,674 |
NON-CASH INVESTING TRANSACTIONS: | ||
Accrual for expenditures for operating properties and development properties | 66,967 | 50,246 |
Tenant improvements funded directly by tenants | 9,221 | 10,713 |
Assumption of accrued liabilities in connection with acquisitions | 0 | 4,911 |
NON-CASH FINANCING TRANSACTIONS: | ||
Accrual of dividends and distributions payable to common stockholders and common unitholders | 43,305 | 36,093 |
Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders | 797 | 1,656 |
Exchange of common units of the Operating Partnership into shares of the Company’s common stock | 10,939 | 39 |
Issuance of common units of the Operating Partnership in connection with an acquisition | 0 | 48,033 |
Secured debt assumed by buyers in connection with land dispositions | $ 0 | $ 2,322 |
Supplemental Cash Flow Inform64
Supplemental Cash Flow Information of the Company - Reconciliation of cash and cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Supplemental Cash Flow Elements [Abstract] | |||
Cash and cash equivalents at beginning of period | $ 193,418 | $ 26,332 | $ 56,508 |
Restricted cash at beginning of period | 56,711 | 266,158 | 696 |
Cash and cash equivalents and restricted cash, beginning of period | 250,129 | 292,490 | 57,204 |
Cash and cash equivalents at end of period | 387,616 | 193,418 | 26,332 |
Restricted cash at end of period | 8,249 | 56,711 | 266,158 |
Cash and cash equivalents and restricted cash, end of period | $ 395,865 | $ 250,129 | $ 292,490 |
Supplemental Cash Flow Inform65
Supplemental Cash Flow Information of the Operating Partnership (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Cash paid for interest, net of capitalized interest of $20,219 and $25,674 as of June 30, 2017 and 2016, respectively | $ 30,977 | $ 25,787 |
Interest capitalized | 20,219 | 25,674 |
NON-CASH INVESTING TRANSACTIONS: | ||
Accrual for expenditures for operating properties and development properties | 66,967 | 50,246 |
Tenant improvements funded directly by tenants | 9,221 | 10,713 |
Assumption of accrued liabilities in connection with acquisitions | 0 | 4,911 |
NON-CASH FINANCING TRANSACTIONS: | ||
Accrual of distributions payable to common unitholders | 43,305 | 36,093 |
Accrual of distributions payable to preferred unitholders | 797 | 1,656 |
Issuance of common units of the Operating Partnership in connection with an acquisition | 0 | 48,033 |
Secured debt assumed by buyers in connection with land dispositions | 0 | 2,322 |
Kilroy Realty, L.P. [Member] | ||
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Cash paid for interest, net of capitalized interest of $20,219 and $25,674 as of June 30, 2017 and 2016, respectively | 30,977 | 25,787 |
Interest capitalized | 20,219 | 25,674 |
NON-CASH INVESTING TRANSACTIONS: | ||
Accrual for expenditures for operating properties and development properties | 66,967 | 50,246 |
Tenant improvements funded directly by tenants | 9,221 | 10,713 |
Assumption of accrued liabilities in connection with acquisitions | 0 | 4,911 |
NON-CASH FINANCING TRANSACTIONS: | ||
Accrual of distributions payable to common unitholders | 43,305 | 36,093 |
Accrual of distributions payable to preferred unitholders | 797 | 1,656 |
Issuance of common units of the Operating Partnership in connection with an acquisition | 0 | 48,033 |
Secured debt assumed by buyers in connection with land dispositions | $ 0 | $ 2,322 |
Supplemental Cash Flow Inform66
Supplemental Cash Flow Information of the Operating Partnership - Reconciliation of cash and cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Other Significant Noncash Transactions [Line Items] | |||
Cash and cash equivalents at beginning of period | $ 193,418 | $ 26,332 | $ 56,508 |
Restricted cash at beginning of period | 56,711 | 266,158 | 696 |
Cash and cash equivalents and restricted cash, beginning of period | 250,129 | 292,490 | 57,204 |
Cash and cash equivalents at end of period | 387,616 | 193,418 | 26,332 |
Restricted cash at end of period | 8,249 | 56,711 | 266,158 |
Cash and cash equivalents and restricted cash, end of period | 395,865 | 250,129 | 292,490 |
Kilroy Realty, L.P. [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Cash and cash equivalents at beginning of period | 193,418 | 26,332 | 56,508 |
Restricted cash at beginning of period | 56,711 | 266,158 | 696 |
Cash and cash equivalents and restricted cash, beginning of period | 250,129 | 292,490 | 57,204 |
Cash and cash equivalents at end of period | 387,616 | 193,418 | 26,332 |
Restricted cash at end of period | 8,249 | 56,711 | 266,158 |
Cash and cash equivalents and restricted cash, end of period | $ 395,865 | $ 250,129 | $ 292,490 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Aug. 15, 2017 | Jul. 12, 2017 | Jan. 13, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Jul. 24, 2017 |
Subsequent Event [Line Items] | |||||||
Payment of special dividend | $ 36,400,000 | $ 255,292,000 | $ 65,935,000 | ||||
Unsecured debt, net (Notes 5 and 11) | $ 2,097,083,000 | $ 1,847,351,000 | |||||
Subsequent event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Payment of special dividend | $ 43,300,000 | ||||||
Series H Cumulative Redeemable Preferred Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, redeemed (in shares) | 4,000,000 | 4,000,000 | |||||
Preferred stock dividend rate percentage | 6.375% | 6.375% | |||||
Series H Cumulative Redeemable Preferred Stock [Member] | Subsequent event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, redeemed (in shares) | 4,000,000 | ||||||
Series H Cumulative Redeemable Preferred Stock [Member] | Scenario, forecast [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, redemption price (in dollars per share) | $ 25 | ||||||
Preferred stock, redemption amount | $ 100,000,000 | ||||||
Debt issuance costs incurred during noncash transaction | $ 3,700,000 | ||||||
Kilroy Realty, L.P. [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Payment of special dividend | $ 255,292,000 | $ 65,935,000 | |||||
Unsecured debt, net (Notes 5 and 11) | 2,097,083,000 | $ 1,847,351,000 | |||||
Kilroy Realty, L.P. [Member] | Revolving Credit Facility [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Total borrowing capacity | 600,000,000 | 600,000,000 | |||||
Contingent additional borrowings | 311,000,000 | ||||||
Kilroy Realty, L.P. [Member] | Revolving Credit Facility [Member] | Subsequent event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Total borrowing capacity | $ 750,000,000 | ||||||
$150 Million Term Loan Facility [Member] | Kilroy Realty, L.P. [Member] | Line of Credit [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Unsecured debt, net (Notes 5 and 11) | 150,000,000 | 150,000,000 | |||||
$39 Million Unsecured Term Loan [Member] | Kilroy Realty, L.P. [Member] | Line of Credit [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Unsecured debt, net (Notes 5 and 11) | $ 39,000,000 | $ 39,000,000 |