Kilroy Realty Breaks Ground on New San Diego Office Property
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57,000 Square Foot Development in Sorrento Mesa
LOS ANGELES--(BUSINESS WIRE)--Dec. 22, 2006--Kilroy Realty Corporation (NYSE:KRC) today said it broke ground on a new office project in San Diego County, boosting the company's development in the region to 1.1 million square feet in five projects. The five projects under development are 82% pre-leased. When completed, they will increase the company's San Diego portfolio to approximately five million square feet.
KRC's newest development project is a two-story, 57,000 rentable square-foot office building at the company's Sorrento Gateway office campus, located in the Sorrento Mesa submarket of coastal San Diego. The campus currently includes four office and life science buildings totaling approximately 310,000 square feet that are 100% leased. KRC expects to complete construction of the new building in the fourth quarter of 2007 for a total investment of approximately $22 million.
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 KRC'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; KRC'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; 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 KRC has a presence; and 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 KRC's ability to control or predict. For forward-looking statements herein, KRC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. 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 Corporation currently has an in-process development and redevelopment pipeline of approximately 1.3 million square feet of office space in Los Angeles and San Diego County. At September 30, 2006, the company owned 7.8 million rentable square feet of commercial office space and 4.2 million rentable square feet of industrial space. More information is available at www.kilroyrealty.com.
CONTACT: Kilroy Realty Corporation