Continued Strong Leasing Performance Boosts Year-To-Date Total to
More Than 1.6 Million Square Feet
LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE: KRC) today said it has
signed new or renewing leases on approximately 945,000 square feet of
space at several of its stabilized properties during the past month.
Rents on the leases are up approximately 26% on a GAAP basis and 6% on a
cash basis. The average lease term is approximately nine years.
The leases span three of the company’s four major markets: San Diego,
Seattle and San Francisco. In San Diego, the company signed multiple
leases, including a 145,000-square-foot lease with General Atomics at
its Kilroy Sabre Springs property on the I-15 Corridor, backfilling a
large lease expiration scheduled for July. At Del Mar Corporate Center,
the company signed 48,000 square feet of leases to backfill a
127,000-square-foot expiration scheduled for October. In Seattle, the
company executed a 163,000-square-foot lease renewal and extension with
Adobe at Fremont Lake Union Center. And in San Francisco, the company
signed multiple leases, including a new lease with Nektar Therapeutics
for up to 136,000 square feet at 360 Third Street and a new lease with a
technology company for approximately 375,000 square feet at 301, 333 and
345 Brannan Street. 333 Brannan Street is a 185,000-square-foot
ground-up, LEED Platinum office project, developed by KRC in 2015; 301
Brannan Street is an 83,000-square-foot historic office property that
was purchased by the company in 2011; and 345 Brannan Street is a
110,000-square-foot office project that KRC is in escrow to purchase
later this year.
Additional details on the company’s most recent leasing activity will be
discussed during KRC’s Investor Day presentation on June 4, 2018 from
2:00 pm to 5:00 pm Eastern Time. The presentation will be webcast live
on the company’s website at http://investors.kilroyrealty.com/event,
where a replay will also be available following the live broadcast.
“West Coast real estate markets continue to outperform,” said John
Kilroy, the company’s Chairman and Chief Executive Officer, “with strong
demand generated by a wide range of companies confronting increasingly
limited supply. Our portfolio of best-in-class properties, situated in
attractive urban environments and designed for efficiency,
sustainability and the creative needs of a modern workforce, remain in
constant demand.”
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, 2018, the company’s stabilized portfolio totaled
approximately 13.9 million square feet of office space located in the
coastal regions of Los Angeles, Orange County, San Diego, the San
Francisco Bay Area and Greater Seattle and 200 residential units located
in the Hollywood submarket of Los Angeles. In addition, KRC had five
projects totaling approximately 2.1 million square feet of office and
PDR space, 237 residential units and 120,000 square feet of retail space
under construction.
The company has been recognized by GRESB as the North American leader in
office sustainability for the last four years and is listed in the Dow
Jones Sustainability World Index. At the end of the first quarter, the
company’s stabilized portfolio was 59% 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, as well
as business and consumer reactions to such changes; 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, 2017 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180604005751/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