LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE: KRC) today reported
financial results for its first quarter ended March 31, 2017.
First Quarter Highlights
Financial Results
-
Net income available to common stockholders of $0.26 per share
-
Funds from operations (“FFO”) available to common stockholders and
unitholders of $0.81 per share, including a non-cash charge of $0.04
per share of original issuance costs in connection with the redemption
of the Series G preferred stock
-
Excluding the non-cash charge, FFO per share increased 3.6% compared
to the prior year period
-
Revenues of $179.3 million
Stabilized Portfolio
-
Stabilized portfolio was 94.1% occupied and 95.7% leased at March
31, 2017
-
Signed approximately 643,000 square feet of new or renewing leases
Development
-
Stabilized the three-building, 365,000 square-foot office development
comprising phase two of the company’s Columbia Square mixed-used
project in Hollywood, CA. The buildings were 86% leased as of March
31, 2017
-
Signed a lease with Adobe for an additional 104,000 square feet at 100
Hooper in San Francisco, CA. 100% of the office space is now
pre-leased to Adobe
Capital Recycling
-
In January, completed the sale of a 68,000 square-foot office building
in San Diego’s Sorrento Mesa submarket for gross proceeds of $12.1
million
Finance
-
In January, completed a public offering of 4,427,500 shares of common
stock for net proceeds of $308.8 million
-
In February, fully drew down on an aggregate of $250.0 million private
placement debt comprised of $175.0 million of ten-year, 3.35%
unsecured senior notes and $75.0 million of twelve-year, 3.45%
unsecured senior notes. Both notes were originated in September 2016
and had a six-month delayed draw option
-
Redeemed 4,000,000 shares of our 6.875% Series G preferred stock at
the contractual redemption price of $25.00 per share for a total cost
of approximately $100.8 million in cash, including accrued dividends.
The redemption date was March 30, 2017
Results for the Quarter Ended March 31, 2017
For the first quarter ended March 31, 2017, KRC reported net income
available to common stockholders of $26.3 million, or $0.26 per share,
compared to $171.0 million, or $1.84 per share, in the first quarter of
2016. Net income in the 2016 first quarter included a $146.0 million
gain from operating property dispositions. FFO in the first quarter of
2017 was $81.9 million, or $0.81 per share, including a non-cash charge
of $0.04 per share for the write-off of the original issuance costs in
connection with redeeming the Series G preferred stock, compared to FFO
of $78.2 million, or $0.82 per share, in the year-earlier quarter.
Revenues totaled $179.3 million in the first quarter of 2017, compared
to $145.4 million in the prior year period.
All per share amounts in this report are presented on a diluted basis.
Operating and Leasing Activity
At March 31, 2017, KRC’s stabilized portfolio totaled approximately
14.4 million square feet of office space and 200 residential units
located in Los Angeles, Orange County, San Diego, the San Francisco Bay
Area and Greater Seattle. During the first quarter, the company signed
new or renewing leases in the office portfolio totaling 643,000 square
feet of space. At quarter-end, the office portfolio was 94.1% occupied
and 95.7% leased, compared to occupancy of 96.0% at December 31, 2016
and 94.9% at March 31, 2016. KRC’s 200-unit residential tower was 64.9%
occupied and 71.3% leased at March 31, 2017.
Real Estate Development Activity
KRC currently has three projects under construction, The Exchange on 16th
and 100 Hooper, both located in San Francisco, and phase one of One
Paseo, the company’s mixed-used project in the Del Mar submarket of San
Diego County. The three projects total approximately 1.2 million square
feet of office and PDR space, 237 residential units and 96,000 square
feet of retail space, and represent a total estimated investment of
approximately $1.1 billion.
Management Comments
“We delivered a solid first quarter at KRC,” said John Kilroy, the
company’s chairman, president and chief executive officer, “with an
especially strong leasing performance in our stabilized portfolio that
reflects both the strength of our markets and the appeal of our
well-located and well-designed contemporary work environments. We plan
to build on this strong start throughout the year, focusing on quality
execution across our leasing, development, acquisition and capital
recycling programs.”
Net Income Available to Common Stockholders / FFO Guidance and
Outlook
The company has updated its guidance range of NAREIT-defined FFO per
share - diluted for the full year 2017 to $3.38 - $3.54 per share with a
midpoint of $3.46 per share. The decrease of approximately $0.04 per
share from the midpoint of the company’s prior guidance relates
primarily to the non-cash charge of $0.04 per share of original issuance
costs in connection with the redemption of the Series G preferred stock.
The company’s guidance estimates for the full year 2017, and the
reconciliation of net income available to stockholders per share -
diluted and FFO per share and unit - diluted included within this press
release, reflect management’s views on current and future market
conditions, including assumptions with respect to rental rates,
occupancy levels, and the earnings impact of the events referenced in
this press release. These guidance estimates do not include any
estimates of possible future gains or losses or the impact on operating
results from possible future operating property dispositions since any
potential future disposition transactions will ultimately depend on
market conditions and other factors, including but not limited to the
company’s capital needs and its ability to defer some or all of the
taxable gain on the sales. Moreover, the magnitude of gains or losses on
sales of depreciable operating properties, if any, will depend on the
sales price and depreciated cost basis of the disposed assets at the
time of disposition, information that is not known at the time the
company provides guidance, and the timing of any gain recognition will
depend on the closing of the dispositions, information that is also not
known at the time the company provides guidance and may occur after the
relevant guidance period. These guidance estimates also do not include
the impact on operating results from potential future acquisitions,
possible capital markets activity, possible future impairment charges or
any events outside of the company’s control.
Conference Call and Audio Webcast
KRC management will discuss earnings guidance for fiscal year 2017
during the company’s April 27, 2017 earnings conference call. The call
will begin at 10:00 a.m. Pacific Time and last approximately one hour.
Those interested in listening via the Internet can access the conference
call at http://investors.kilroyrealty.com/phoenix.zhtml?c=79637&p=irol-calendar.
It may be necessary to download audio software to hear the conference
call. Those interested in listening via telephone can access the
conference call at (866) 777-2509. International callers should dial
(412) 317-5413. In order to bypass speaking to the operator on the day
of the call, please pre-register anytime at http://dpregister.com/10104906.
A replay of the conference call will be available via telephone on April
27, 2017 through May 4, 2017 by dialing (877) 344-7529 and entering
passcode 10104906. International callers should dial (412) 317-0088 and
enter the same passcode. The replay will also be available on our
website at http://investors.kilroyrealty.com/phoenix.zhtml?c=79637&p=irol-audioarchives.
About Kilroy Realty Corporation
Kilroy Realty Corporation (KRC), a publicly traded real estate
investment trust and member of the S&P MidCap 400 Index, is one of the
West Coast’s premier landlords. The company has over 70 years of
experience developing, acquiring and managing office and mixed-use real
estate assets. The company provides physical work environments that
foster creativity and productivity and serves a broad roster of dynamic,
innovation-driven tenants, including technology, entertainment, digital
media and health care companies.
At March 31, 2017, the company’s stabilized portfolio totaled
approximately 14.4 million square feet of office space and 200
residential units located in the coastal regions of Los Angeles, Orange
County, San Diego, the San Francisco Bay Area and Greater Seattle. In
addition, KRC had two office projects totaling approximately 1.2 million
square feet, 237 residential units and 96,000 square feet of retail
space under construction.
The company is recognized by GRESB as the North American leader in
sustainability and was ranked first among 178 North American
participants across all asset types. At the end of the first quarter,
the company’s stabilized portfolio was 52% LEED certified and 71% of
eligible properties were ENERGY STAR certified. More information is
available at http://www.kilroyrealty.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on our current expectations,
beliefs and assumptions, and are not guarantees of future performance.
Forward-looking statements are inherently subject to uncertainties,
risks, changes in circumstances, trends and factors that are difficult
to predict, many of which are outside of our control. Accordingly,
actual performance, results and events may vary materially from those
indicated in the forward-looking statements, and you should not rely on
the forward-looking statements as predictions of future performance,
results or events. Numerous factors could cause actual future
performance, results and events to differ materially from those
indicated in the forward-looking statements, including, among others:
global market and general economic conditions and their effect on our
liquidity and financial conditions and those of our tenants; adverse
economic or real estate conditions generally, and specifically, in the
States of California and Washington; risks associated with our
investment in real estate assets, which are illiquid, and with trends in
the real estate industry; defaults on or non-renewal of leases by
tenants; any significant downturn in tenants’ businesses; our ability to
re-lease property at or above current market rates; costs to comply with
government regulations, including environmental remediation; the
availability of cash for distribution and debt service and exposure to
risk of default under debt obligations; increases in interest rates and
our ability to manage interest rate exposure; the availability of
financing on attractive terms or at all, which may adversely impact our
future interest expense and our ability to pursue development,
redevelopment and acquisition opportunities and refinance existing debt;
a decline in real estate asset valuations, which may limit our ability
to dispose of assets at attractive prices or obtain or maintain debt
financing, and which may result in write-offs or impairment charges;
significant competition, which may decrease the occupancy and rental
rates of properties; potential losses that may not be covered by
insurance; the ability to successfully complete acquisitions and
dispositions on announced terms; the ability to successfully operate
acquired, developed and redeveloped properties; the ability to
successfully complete development and redevelopment projects on schedule
and within budgeted amounts; delays or refusals in obtaining all
necessary zoning, land use and other required entitlements, governmental
permits and authorizations for our development and redevelopment
properties; increases in anticipated capital expenditures, tenant
improvement and/or leasing costs; defaults on leases for land on which
some of our properties are located; adverse changes to, or
implementations of, applicable laws, regulations or legislation; risks
associated with joint venture investments, including our lack of sole
decision-making authority, our reliance on co-venturers’ financial
condition and disputes between us and our co-venturers; environmental
uncertainties and risks related to natural disasters; and our ability to
maintain our status as a REIT. These factors are not exhaustive and
additional factors could adversely affect our business and financial
performance. For a discussion of additional factors that could
materially adversely affect our business and financial performance, see
the factors included under the caption “Risk Factors” in our annual
report on Form 10-K for the year ended December 31, 2016 and our other
filings with the Securities and Exchange Commission. All forward-looking
statements are based on currently available information, and speak only
as of the date on which they are made. We assume no obligation to update
any forward-looking statement made in this press release that becomes
untrue because of subsequent events, new information or otherwise,
except to the extent we are required to do so in connection with our
ongoing requirements under federal securities laws.
|
| |
KILROY REALTY CORPORATION |
SUMMARY OF QUARTERLY RESULTS |
|
(unaudited, in thousands, except per share data)
|
| |
|
| | Three Months Ended
March 31, |
| | 2017 |
| 2016 |
|
Revenues
| |
$
|
179,308
| | |
$
|
145,446
| |
| | | |
|
|
Net income available to common stockholders (1) | |
$
|
26,329
| | |
$
|
170,995
| |
| | | |
|
|
Weighted average common shares outstanding – basic
| |
97,388
| | |
92,225
| |
|
Weighted average common shares outstanding – diluted
| |
98,018
| | |
92,735
| |
| | | |
|
|
Net income available to common stockholders per share – basic (1) | |
$
|
0.27
| | |
$
|
1.85
| |
|
Net income available to common stockholders per share – diluted (1) | |
$
|
0.26
| | |
$
|
1.84
| |
| | | |
|
|
Funds From Operations (1)(2)(3) | |
$
|
81,934
| | |
$
|
78,193
| |
| | | |
|
|
Weighted average common shares/units outstanding – basic (4) | |
100,883
| | |
95,319
| |
|
Weighted average common shares/units outstanding – diluted (5) | |
101,513
| | |
95,829
| |
| | | |
|
|
Funds From Operations per common share/unit – basic (3) | |
$
|
0.81
| | |
$
|
0.82
| |
|
Funds From Operations per common share/unit – diluted (3) | |
$
|
0.81
| | |
$
|
0.82
| |
| | | |
|
|
Common shares outstanding at end of period
| |
98,275
| | |
92,229
| |
|
Common partnership units outstanding at end of period
| |
2,077
|
| |
2,631
|
|
|
Total common shares and units outstanding at end of period
| |
100,352
| | |
94,860
| |
| | | |
|
| | March 31, 2017 | | March 31, 2016 |
|
Stabilized office portfolio occupancy rates: (6) | | | | |
| Los Angeles and Ventura Counties
| |
91.5
|
%
| |
94.3
|
%
|
| Orange County | |
95.5
|
%
| |
97.6
|
%
|
| San Diego County | |
92.8
|
%
| |
88.8
|
%
|
| San Francisco Bay Area | |
95.5
|
%
| |
98.6
|
%
|
| Greater Seattle | |
97.2
|
%
| |
95.3
|
%
|
Weighted average total
| |
94.1
|
%
| |
94.9
|
%
|
| | | |
|
|
Total square feet of stabilized office properties owned at end of
period: (6) | | | | |
| Los Angeles and Ventura Counties
| |
4,181
| | |
3,613
| |
| Orange County | |
272
| | |
272
| |
| San Diego County | |
2,719
| | |
2,850
| |
| San Francisco Bay Area | |
5,157
| | |
4,871
| |
| Greater Seattle | |
2,066
|
| |
2,066
|
|
|
Total
| |
14,395
| | |
13,672
| |
|
________________________
|
|
(1)
|
|
Net income available to common stockholders for the three months
ended March 31, 2017 and 2016 includes gains on sales of depreciable
operating properties of $2.3 million and $146.0 million,
respectively.
|
|
(2)
| |
Reconciliation of Net income available to common stockholders to
Funds From Operations available to common stockholders and
unitholders and management statement on Funds From Operations are
included after the Consolidated Statements of Operations.
|
|
(3)
| |
Reported amounts are attributable to common stockholders, common
unitholders, and restricted stock unitholders.
|
|
(4)
| |
Calculated based on weighted average shares outstanding including
participating share-based awards (i.e. nonvested stock and certain
time based restricted stock units) and assuming the exchange of all
common limited partnership units outstanding.
|
|
(5)
| |
Calculated based on weighted average shares outstanding including
participating and non-participating share-based awards (i.e.
nonvested stock and time based restricted stock units), dilutive
impact of stock options and contingently issuable shares and
assuming the exchange of all common limited partnership units
outstanding.
|
|
(6)
| |
Occupancy percentages and total square feet reported are based on
the company’s stabilized office portfolio for the periods presented.
Occupancy percentages and total square feet shown for March 31, 2016
include the office properties that were sold subsequent to March 31,
2016.
|
|
| |
| |
KILROY REALTY CORPORATION |
CONSOLIDATED BALANCE SHEETS |
|
(in thousands)
|
| | | |
|
| | March 31, 2017 | | December 31, 2016 |
| | (unaudited) | | |
ASSETS | | | | |
|
REAL ESTATE ASSETS:
| | | | |
|
Land and improvements
| |
$
|
1,108,971
| | |
$
|
1,108,971
| |
|
Buildings and improvements
| |
4,962,732
| | |
4,938,250
| |
|
Undeveloped land and construction in progress
| |
1,087,678
|
| |
1,013,533
|
|
Total real estate assets held for investment
| |
7,159,381
| | |
7,060,754
| |
|
Accumulated depreciation and amortization
| |
(1,186,246
|
)
| |
(1,139,853
|
)
|
|
Total real estate assets held for investment, net
| |
5,973,135
| | |
5,920,901
| |
| | | |
|
|
Real estate assets and other assets held for sale, net
| |
—
| | |
9,417
| |
|
Cash and cash equivalents
| |
478,391
| | |
193,418
| |
|
Restricted cash
| |
7,199
| | |
56,711
| |
|
Marketable securities
| |
15,163
| | |
14,773
| |
|
Current receivables, net
| |
13,740
| | |
13,460
| |
|
Deferred rent receivables, net
| |
225,860
| | |
218,977
| |
|
Deferred leasing costs and acquisition-related intangible assets, net
| |
202,499
| | |
208,368
| |
|
Prepaid expenses and other assets, net
| |
77,678
|
| |
70,608
|
|
|
TOTAL ASSETS
| |
$
|
6,993,665
|
| |
$
|
6,706,633
|
|
| | | |
|
LIABILITIES AND EQUITY | | | | |
|
LIABILITIES:
| | | | |
|
Secured debt, net
| |
$
|
469,670
| | |
$
|
472,772
| |
|
Unsecured debt, net
| |
2,096,356
| | |
1,847,351
| |
|
Accounts payable, accrued expenses and other liabilities
| |
215,469
| | |
202,391
| |
|
Accrued dividends and distributions
| |
38,983
| | |
222,306
| |
|
Deferred revenue and acquisition-related intangible liabilities, net
| |
153,369
| | |
150,360
| |
|
Rents received in advance and tenant security deposits
| |
53,677
| | |
52,080
| |
|
Liabilities and deferred revenue of real estate assets held for sale
| |
—
|
| |
56
|
|
|
Total liabilities
| |
3,027,524
|
| |
2,947,316
|
|
| | | |
|
|
EQUITY:
| | | | |
|
Stockholders’ Equity
| | | | |
|
6.875% Series G Cumulative Redeemable Preferred stock
| |
—
| | |
96,155
| |
|
6.375% Series H Cumulative Redeemable Preferred stock
| |
96,256
| | |
96,256
| |
|
Common stock
| |
983
| | |
932
| |
|
Additional paid-in capital
| |
3,782,291
| | |
3,457,649
| |
|
Distributions in excess of earnings
| |
(120,207
|
)
| |
(107,997
|
)
|
|
Total stockholders’ equity
| |
3,759,323
| | |
3,542,995
| |
|
Noncontrolling Interests
| | | | |
|
Common units of the Operating Partnership | |
77,432
| | |
85,590
| |
|
Noncontrolling interests in consolidated property partnerships
| |
129,386
|
| |
130,732
|
|
|
Total noncontrolling interests
| |
206,818
|
| |
216,322
|
|
|
Total equity
| |
3,966,141
|
| |
3,759,317
|
|
|
TOTAL LIABILITIES AND EQUITY
| |
$
|
6,993,665
|
| |
$
|
6,706,633
|
|
| | | | | | | |
|
|
| |
KILROY REALTY CORPORATION |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(unaudited, in thousands, except per share data)
|
| |
|
| | Three Months Ended
March 31, |
| | 2017 |
| 2016 |
|
REVENUES
| | | | |
|
Rental income
| |
$
|
156,648
| | |
$
|
133,755
| |
|
Tenant reimbursements
| |
19,296
| | |
11,404
| |
|
Other property income
| |
3,364
|
| |
287
|
|
|
Total revenues
| |
179,308
|
| |
145,446
|
|
| | | |
|
|
EXPENSES
| | | | |
|
Property expenses
| |
31,241
| | |
25,965
| |
|
Real estate taxes
| |
17,964
| | |
11,032
| |
|
Provision for bad debts
| |
1,298
| | |
—
| |
|
Ground leases
| |
1,642
| | |
829
| |
|
General and administrative expenses
| |
14,933
| | |
13,437
| |
|
Acquisition-related expenses
| |
—
| | |
62
| |
|
Depreciation and amortization
| |
60,919
|
| |
50,440
|
|
|
Total expenses
| |
127,997
|
| |
101,765
|
|
| | | |
|
|
OTHER (EXPENSES) INCOME
| | | | |
|
Interest income and other net investment gains
| |
1,065
| | |
271
| |
|
Interest expense
| |
(17,352
|
)
| |
(11,829
|
)
|
|
Total other (expenses) income
| |
(16,287
|
)
| |
(11,558
|
)
|
| | | |
|
|
INCOME FROM OPERATIONS BEFORE GAINS ON SALES OF REAL ESTATE
| |
35,024
| | |
32,123
| |
|
Gains on sale of depreciable operating properties
| |
2,257
|
| |
145,990
|
|
|
NET INCOME
| |
37,281
|
| |
178,113
|
|
| | | |
|
|
Net income attributable to noncontrolling common units of the
Operating Partnership | |
(623
|
)
| |
(3,610
|
)
|
|
Net income attributable to noncontrolling interests in consolidated
property partnerships
| |
(3,133
|
)
| |
(195
|
)
|
|
Total income attributable to noncontrolling interests
| |
(3,756
|
)
| |
(3,805
|
)
|
| | | |
|
|
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION
| |
33,525
| | |
174,308
| |
| | | |
|
|
Preferred dividends
| |
(3,351
|
)
| |
(3,313
|
)
|
|
Original issuance costs of redeemed preferred stock
| |
(3,845
|
)
| |
—
|
|
|
Total preferred dividends
| |
(7,196
|
)
| |
(3,313
|
)
|
|
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
| |
$
|
26,329
|
| |
$
|
170,995
|
|
| | | |
|
|
Weighted average common shares outstanding – basic
| |
97,388
| | |
92,225
| |
|
Weighted average common shares outstanding – diluted
| |
98,018
| | |
92,735
| |
| | | |
|
|
Net income available to common stockholders per share – basic
| |
$
|
0.27
|
| |
$
|
1.85
|
|
|
Net income available to common stockholders per share – diluted
| |
$
|
0.26
|
| |
$
|
1.84
|
|
| | | | | | | |
|
|
| |
KILROY REALTY CORPORATION |
FUNDS FROM OPERATIONS |
|
(unaudited, in thousands, except per share data)
|
| |
|
| | Three Months Ended March 31, |
| | 2017 |
| 2016 |
|
Net income available to common stockholders
| |
$
|
26,329
| | |
$
|
170,995
| |
|
Adjustments:
| | | | |
|
Net income attributable to noncontrolling common units of the
Operating Partnership | |
623
| | |
3,610
| |
|
Net income attributable to noncontrolling interests in consolidated
property partnerships
| |
3,133
| | |
195
| |
|
Depreciation and amortization of real estate assets
| |
59,734
| | |
49,664
| |
|
Gains on sales of depreciable real estate
| |
(2,257
|
)
| |
(145,990
|
)
|
|
Funds From Operations attributable to noncontrolling interests in
consolidated property partnerships
| |
(5,628
|
)
| |
(281
|
)
|
|
Funds From Operations(1)(2)(3) | |
$
|
81,934
|
| |
$
|
78,193
|
|
| | | |
|
|
Weighted average common shares/units outstanding – basic (4) | |
100,883
| | |
95,319
| |
|
Weighted average common shares/units outstanding – diluted (5) | |
101,513
| | |
95,829
| |
| | | |
|
|
Funds From Operations per common share/unit – basic (2) | |
$
|
0.81
|
| |
$
|
0.82
|
|
|
Funds From Operations per common share/unit – diluted (2) | |
$
|
0.81
|
| |
$
|
0.82
|
|
|
________________________
|
|
(1)
|
|
We calculate Funds From Operations available to common stockholders
and common unitholders (“FFO”) in accordance with the White Paper on
FFO approved by the Board of Governors of NAREIT. The White Paper
defines FFO as net income or loss calculated in accordance with
GAAP, excluding extraordinary items, as defined by GAAP, gains and
losses from sales of depreciable real estate and impairment
write-downs associated with depreciable real estate, plus real
estate-related depreciation and amortization (excluding amortization
of deferred financing costs and depreciation of non-real estate
assets) and after adjustment for unconsolidated partnerships and
joint ventures. Our calculation of FFO includes the amortization of
deferred revenue related to tenant-funded tenant improvements and
excludes the depreciation of the related tenant improvement assets.
We also add back net income attributable to noncontrolling common
units of the Operating Partnership because we report FFO
attributable to common stockholders and common unitholders.
|
| |
|
| |
We believe that FFO is a useful supplemental measure of our
operating performance. The exclusion from FFO of gains and losses
from the sale of operating real estate assets allows investors and
analysts to readily identify the operating results of the assets
that form the core of our activity and assists in comparing those
operating results between periods. Also, because FFO is generally
recognized as the industry standard for reporting the operations of
REITs, it facilitates comparisons of operating performance to other
REITs. However, other REITs may use different methodologies to
calculate FFO, and accordingly, our FFO may not be comparable to all
other REITs.
|
| |
|
| |
Implicit in historical cost accounting for real estate assets in
accordance with GAAP is the assumption that the value of real estate
assets diminishes predictably over time. Since real estate values
have historically risen or fallen with market conditions, many
industry investors and analysts have considered presentations of
operating results for real estate companies using historical cost
accounting alone to be insufficient. Because FFO excludes
depreciation and amortization of real estate assets, we believe that
FFO along with the required GAAP presentations provides a more
complete measurement of our performance relative to our competitors
and a more appropriate basis on which to make decisions involving
operating, financing and investing activities than the required GAAP
presentations alone would provide.
|
| |
|
| |
However, FFO should not be viewed as an alternative measure of our
operating performance because it does not reflect either
depreciation and amortization costs or the level of capital
expenditures and leasing costs necessary to maintain the operating
performance of our properties, which are significant economic costs
and could materially impact our results from operations.
|
|
|
|
(2)
| |
Reported amounts are attributable to common stockholders, common
unitholders, and restricted stock unitholders.
|
|
|
|
(3)
| |
FFO available to common stockholders and unitholders includes
amortization of deferred revenue related to tenant-funded tenant
improvements of $3.7 million and $2.9 million for the three months
ended March 31, 2017 and 2016, respectively.
|
|
|
|
(4)
| |
Calculated based on weighted average shares outstanding including
participating share-based awards (i.e. nonvested stock and certain
time based restricted stock units) and assuming the exchange of all
common limited partnership units outstanding.
|
|
|
|
(5)
| |
Calculated based on weighted average shares outstanding including
participating and non-participating share-based awards (i.e.
nonvested stock and time based restricted stock units), dilutive
impact of stock options and contingently issuable shares and
assuming the exchange of all common limited partnership units
outstanding.
|
| |
|
|
| |
KILROY REALTY CORPORATION |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
/ FFO GUIDANCE AND OUTLOOK |
|
(unaudited, in thousands, except per share data)
|
| |
|
| | Full Year Range at March 31, 2017 |
| | Low End |
| High End |
|
Net income available to common stockholders per share - diluted
| |
$
|
1.25
| | |
$
|
1.31
| |
| | | |
|
|
Weighted average common shares outstanding - diluted(1) | |
100,000
| | |
100,000
| |
| | | |
|
|
Net income available to common stockholders
| |
$
|
125,320
| | |
$
|
131,090
| |
|
Adjustments:
| | | | |
|
Net income attributable to noncontrolling common units of the
Operating Partnership | |
2,950
| | |
3,080
| |
|
Net income attributable to noncontrolling interests in consolidated
property partnerships
| |
13,990
| | |
14,640
| |
|
Depreciation and amortization of real estate assets
| |
228,190
| | |
238,710
| |
|
Gains on sales of depreciable real estate
| |
(2,260
|
)
| |
(2,260
|
)
|
|
Funds From Operations attributable to noncontrolling interests in
consolidated property partnerships
| |
(23,190
|
)
| |
(24,260
|
)
|
|
Funds From Operations(2)(3) | |
$
|
345,000
|
| |
$
|
361,000
|
|
| | | |
|
|
Weighted average common shares/units outstanding – diluted (3) | |
102,000
| | |
102,000
| |
| | | |
|
|
Funds From Operations per common share/unit – diluted (2)(3) | |
$
|
3.38
|
| |
$
|
3.54
|
|
|
________________________
|
|
(1)
|
|
Calculated based on estimated weighted average shares outstanding
including participating share-based awards (i.e. nonvested stock and
certain time based restricted stock units).
|
| |
|
|
(2)
| |
See management statement for FFO on previous page.
|
| |
|
|
(3)
| |
Calculated based on estimated weighted average shares outstanding
including participating share-based awards (i.e. nonvested stock and
certain time based restricted stock units) and assuming the exchange
of all estimated common limited partnership units outstanding.
|
| |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170426006839/en/
Kilroy Realty Corporation
Tyler H. Rose
Executive Vice
President and Chief Financial Officer
(310) 481-8484
or
Michelle
Ngo
Senior Vice President and Treasurer
(310) 481-8581
Source: Kilroy Realty Corporation