Kilroy Realty Signs 411,000 Square Foot Lease with Cardinal Health for San Diego Campus; Two-Building Sorrento Mesa Campus to Include New 318,000 Square Foot Facility
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LOS ANGELES, Apr 25, 2006 (BUSINESS WIRE) -- Kilroy Realty Corporation (NYSE:KRC) today said it has signed a lease agreement with Cardinal Health (NYSE:CAH) for a two-building campus totaling 411,000 rentable square feet in the Sorrento Mesa submarket of San Diego. Under the ten-year lease, Cardinal Health will occupy a to-be-developed 318,000 square foot state-of-the-art office and manufacturing building and an adjacent existing 93,000 square foot office building. Cardinal Health, ranked 16th on the Fortune 500, provides products and services to the health care industry. The lease is scheduled to commence in the third quarter of 2007.
The new 318,000 square foot building will be built on existing Kilroy Realty land holdings, Pacific Corporate Center - Lots 3, 4 and 6, and has an estimated total investment of approximately $78 million. With the addition of the new building, Kilroy Realty's committed development pipeline now totals approximately 861,000 square feet and is 100% preleased.
"Our development pipeline continues to generate value creation opportunities for our shareholders," said John B. Kilroy, Jr., KRC's president and chief executive officer. "Cardinal Health is a terrific tenant with strong credit and we look forward to adding them to our list of key customers," he added.
Some of the information presented in this release is forward-looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995. Although Kilroy Realty Corporation believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that could cause actual results to differ materially from Kilroy Realty's expectations are set forth as risk factors in the company's Securities and Exchange Commission reports and filings. Included among these factors are changes in general economic conditions, including changes in the economic conditions affecting industries in which its principal tenants compete; Kilroy Realty's ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs, including utility costs; fluctuations in the company's share price and the resulting impact on general and administrative costs, future demand for its debt and equity securities; its ability to refinance its debt on reasonable terms at maturity; its ability to complete current and future development projects on schedule and on budget; the demand for office space in markets in which Kilroy Realty has a presence; and other risks detailed from time to time in the company's SEC reports, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K. Many of these factors are beyond Kilroy Realty's ability to control or predict. Forward-looking statements are not guarantees of performance. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of California and Washington. Kilroy Realty currently has an in-process development pipeline of approximately 861,000 square feet of office space in San Diego County. At March 31, 2006, the company owned 7.9 million rentable square feet of commercial office space and 4.4 million rentable square feet of industrial space. More information is available at www.kilroyrealty.com.
SOURCE: Kilroy Realty Corporation
Kilroy Realty Corporation