Kilroy Realty Corporation Reports First Quarter Financial Results
|View printer-friendly version|
LOS ANGELES, May 7, 1997 - Kilroy Realty Corporation (NYSE: KRC) today reported financial results for the two-month period ended March 31, 1997, with funds from operations (FFO) of $5.0 million, or $0.29 per share. Net income for the two-month period totaled $2.7 million, or $0.18 per share, on revenues of $9.0 million. The Southern California-based real estate investment trust completed its initial public offering of common stock on January 31, 1997.
Kilroy also reported that, since its IPO, the company has contracted or entered into letters of intent to purchase 12 office and industrial properties containing more than 1.9 million square feet of rentable space for a total purchase price of $155 million. The properties include five office projects with 600,000 square feet of space and seven industrial projects with 1.3 million square feet of space. Of the total, three properties representing a total investment of $25 million have closed to date. Of the remaining $130 million of acquisitions in process, approximately $81 million are the subject of definitive agreements and $49 million are under letters of intent. Subject to the completion of due diligence, all of the remaining acquisitions are expected to close by the end of June.
"Accelerating job growth and a recovering economy have produced the strongest commercial real estate market in Southern California in more than a decade," said John B. Kilroy, Jr., the company's president and chief executive officer. "With competition for acquisitions an increasing factor in the marketplace, we're capitalizing on our first-hand knowledge of regional submarkets to uncover promising investment opportunities," he said.
In addition to an active acquisitions program, Kilroy is adding to its development pipeline, purchasing two industrial development sites for an aggregate price of $6.5 million, and initiating plans to expand facilities at one of the company's existing industrial projects. The company expects to build more than 500,000 square feet of industrial space at the three locations, with construction on the first project scheduled to begin in the third quarter. "We've made a strong start," said Richard E. Moran Jr., the company's chief financial officer. "Kilroy has produced solid financial results in line with REIT analysts' expectations and we've successfully launched the ambitious growth plan laid out during our IPO - to acquire and develop quality real estate in strong suburban markets of Southern California."
Kilroy Realty Corporation owns, operates and develops commercial and industrial properties, primarily in California. At March 31, 1997, the company owned 2.0 million square feet of commercial office space and 1.3 million square feet of industrial space.
Some of the information presented in this release is forward-looking in nature. Although the information is based on the company's current best judgment, actual results could vary from expectations stated here. Numerous factors will affect Kilroy's actual results, some of which are beyond the company's control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels and capital market conditions. For further information, please see Kilroy's Annual Report on Form 10-K.