Page | |
Corporate Data and Financial Highlights | |
Company Background | 1 |
Executive Summary | 2 |
Financial Highlights | 3 |
Net Income Available to Common Stockholders / FFO Guidance and Outlook | 4 |
Common Stock Data | 5 |
Consolidated Balance Sheets | 6 |
Consolidated Statements of Operations | 7 |
Funds From Operations and Funds Available for Distribution | 8-9 |
Net Operating Income | 10 |
Portfolio Data | |
Same Store Analysis | 11 |
Stabilized Portfolio Occupancy Overview by Region | 12-16 |
Information on Leases Commenced & Leases Executed | 17 |
Stabilized Portfolio Capital Expenditures | 18 |
Stabilized Portfolio Lease Expirations | 19-21 |
Top Fifteen Tenants | 22 |
2021 Dispositions | 23 |
Consolidated Ventures (Noncontrolling Property Partnerships) | 24 |
Development | |
Stabilized Office Development Projects | 25 |
In-Process Development | 26 |
Future Development Pipeline | 27 |
Debt and Capitalization Data | |
Capital Structure | 28 |
Debt Analysis | 29-30 |
Non-GAAP Supplemental Measures | 31-33 |
Definitions & Reconciliations | 34-37 |
Board of Directors | Executive and Senior Management Team | Investor Relations | ||
John Kilroy | Chairman | John Kilroy | Chief Executive Officer |
12200 W. Olympic Blvd., Suite 200 Los Angeles, CA 90064 (310) 481-8400 Web: www.kilroyrealty.com E-mail: investorrelations@kilroyrealty.com |
Edward F. Brennan, PhD | Lead Independent | Tyler H. Rose | President | |
Jolie Hunt | Robert Paratte | Executive VP, Leasing and Business Development | ||
Scott S. Ingraham | Heidi R. Roth | Executive VP, Chief Administrative Officer | ||
Louisa Ritter | Justin W. Smart | Executive VP, Development and Construction Services | ||
Gary R. Stevenson | Michelle Ngo | Senior VP, Chief Financial Officer and Treasurer | ||
Peter B. Stoneberg | John Osmond | Senior VP, Head of Asset Management | ||
Eliott Trencher | Senior VP, Chief Investment Officer | |||
Merryl Werber | Senior VP, Chief Accounting Officer and Controller |
Equity Research Coverage | |||
BofA Securities | Jefferies LLC | ||
James Feldman | (646) 855-5808 | Peter Abramowitz | (212) 336-7241 |
BMO Capital Markets Corp. | J.P. Morgan | ||
Frank Lee | (415) 591-2129 | Anthony Paolone | (212) 622-6682 |
BTIG | KeyBanc Capital Markets | ||
Thomas Catherwood | (212) 738-6140 | Craig Mailman | (917) 368-2316 |
Citigroup Investment Research | RBC Capital Markets | ||
Emmanuel Korchman | (212) 816-1382 | Mike Carroll | (440) 715-2649 |
Deutsche Bank Securities, Inc. | Robert W. Baird & Co. | ||
Derek Johnston | (210) 250-5683 | David B. Rodgers | (216) 737-7341 |
Evercore ISI | Scotiabank | ||
Steve Sakwa | (212) 446-9462 | Nicholas Yulico | (212) 225-6904 |
Goldman Sachs & Co. LLC | Wells Fargo | ||
Caitlin Burrows | (212) 902-4736 | Blaine Heck | (443) 263-6529 |
Green Street Advisors | Wolfe Research | ||
Daniel Ismail | (949) 640-8780 | Andrew Rosivach | (646) 582-9250 |
Quarterly Financial Highlights | Quarterly Operating Highlights |
• Net income available to common stockholders per share of $0.30
|
• Stabilized portfolio was 91.8% occupied and 93.6% leased at quarter-end
|
• FFO per share of $0.88
| • 204,114 square feet of leases commenced in the stabilized portfolio |
• Revenues of $226.0 million
| • 197,504 square feet of leases executed in the stabilized portfolio |
• Same Store GAAP NOI increased 5.5% compared to the prior year
|
◦GAAP rents increased approximately 25.6% from prior levels
|
• Same Store Cash NOI increased 4.9% compared to the prior year
|
◦Cash rents increased approximately 8.7% from prior levels
|
• Collected 97% of contractual second quarter rent billings across all property types, | |
including 98% from office and life science | |
Capital Markets Highlights | Strategic Highlights |
• In April, amended and restated the unsecured revolving credit facility (the 'Credit |
• In April, completed construction of Jardine, the Company's 193-unit residential project in
|
Facility'). The new sustainability-linked Credit Facility includes an increase in size from |
the Hollywood submarket of Los Angeles, which is now 30% leased
|
$750.0 million to $1.1 billion, a reduction in borrowing costs and an extension of the | |
maturity date to July 31, 2025 with two six-month extension options |
• In June, completed the acquisition of Indeed Tower in Austin, Texas, a new LEED
|
◦The Credit Facility now bears interest at LIBOR plus 0.900%
|
Platinum targeted, 36-story office project in the tenant improvement phase totaling
|
◦The Credit Facility also features a sustainability-linked pricing component whereby
| approximately 734,000 square feet located in the heart of downtown Austin for $580.2 |
the pricing can improve if the Company meets certain sustainability performance | million |
targets | |
• In June, commenced construction on Kilroy Oyster Point Phase 2 ('KOP 2'), the second
| |
• As of the date of this report, approximately $2.0 billion of total liquidity comprised of |
phase of the Company's five phase life science development in South San Francisco.
|
$465.0 million of cash and cash equivalents, $395.0 million of restricted cash and full |
KOP 2 will include approximately 875,000 square feet in three buildings and has a total
|
availability under the $1.1 billion unsecured revolving credit facility | estimated investment of $940.0 million |
• In June, completed the acquisition of 2045 Pacific Highway in San Diego, a land site
| |
directly adjacent to the Company's 2100 Kettner project in the Little Italy neighborhood for | |
$42.0 million. The Company plans to develop up to 275,000 square feet of office space | |
on the full city block site | |
• In June, added a 92,042 square foot office building located at One Paseo in the Del Mar
| |
submarket of San Diego to the stabilized portfolio. A separate office building, totaling | |
195,000 square feet, remains in the tenant improvement phase. The One Paseo office | |
project is now 100% leased | |
• In July, completed the acquisition of the land that was subject to a ground lease underlying | |
the 490,738 square foot Key Center office building in Bellevue, Washington for $47.0 | |
million | |
Three Months Ended | ||||||||||
6/30/2021 |
3/31/2021 (1)
|
12/31/2020 (1)
|
9/30/2020 (1)
|
6/30/2020 (1)
| ||||||
INCOME ITEMS: | ||||||||||
Revenues | $ | 225,983 | $ | 235,646 | $ | 229,332 | $ | 228,314 | $ | 219,423 |
Lease Termination Fees, net | 1,411 | 53 | 732 | 424 | 867 | |||||
Net Operating Income (2)
| 161,369 | 169,693 | 163,843 | 163,091 | 157,410 | |||||
Capitalized Interest and Debt Costs | 18,073 | 16,908 | 18,280 | 19,339 | 20,516 | |||||
Net Income Available to Common Stockholders | 35,839 | 497,631 | 78,642 | 49,028 | 19,618 | |||||
EBITDA, as adjusted (2)
| 137,316 | 148,389 | 141,882 | 145,402 | 120,321 | |||||
Funds From Operations (3)
| 104,595 | 116,244 | 112,703 | 117,391 | 93,089 | |||||
Net Income Available to Common Stockholders per common share - diluted (4)
| $ | 0.30 | $ | 4.26 | $ | 0.67 | $ | 0.42 | $ | 0.17 |
Funds From Operations per common share - diluted (3)
| $ | 0.88 | $ | 0.98 | $ | 0.95 | $ | 0.99 | $ | 0.78 |
LIQUIDITY ITEMS: | ||||||||||
Funds Available for Distribution (3)
| $ | 77,161 | $ | 78,106 | $ | 73,953 | $ | 88,396 | $ | 68,459 |
Dividends per common share (4)
| $ | 0.500 | $ | 0.500 | $ | 0.500 | $ | 0.500 | $ | 0.485 |
RATIOS: | ||||||||||
Net Operating Income Margins | 71.4 | % | 72.0 | % | 71.4 | % | 71.4 | % | 71.7 | % |
Fixed Charge Coverage Ratio | 3.7x | 4.0x | 3.8x | 4.0x | 3.5x | |||||
FFO Payout Ratio | 56.2 | % | 50.6 | % | 52.0 | % | 49.9 | % | 61.0 | % |
FAD Payout Ratio | 76.2 | % | 75.3 | % | 79.2 | % | 66.3 | % | 83.0 | % |
ASSETS: | ||||||||||
Real Estate Held for Investment before Depreciation | $ | 10,552,076 | $ | 9,792,161 | $ | 10,190,046 | $ | 10,086,784 | $ | 9,945,221 |
Total Assets | 10,434,766 | 10,384,353 | 10,000,708 | 9,984,608 | 9,658,665 | |||||
CAPITALIZATION: (5)
| ||||||||||
Total Debt | $ | 3,951,720 | $ | 3,953,049 | $ | 3,954,365 | $ | 3,955,668 | $ | 3,681,958 |
Total Common Equity and Noncontrolling Interests in the Operating Partnership | 8,189,997 | 7,718,150 | 6,726,499 | 6,088,611 | 6,874,423 | |||||
Total Market Capitalization | 12,141,717 | 11,671,199 | 10,680,864 | 10,044,279 | 10,556,381 | |||||
Total Debt / Total Market Capitalization | 32.5 | % | 33.8 | % | 37.0 | % | 39.4 | % | 34.9 | % |
Full Year 2021 Range | ||||
Low End | High End | |||
Net income available to common stockholders per share - diluted | $ | 5.33 | $ | 5.44 |
Weighted average common shares outstanding - diluted (1)
| 117,650 | 117,650 | ||
Net income available to common stockholders | $ | 627,000 | $ | 640,000 |
Adjustments: | ||||
Net income attributable to noncontrolling common units of the Operating Partnership | 6,400 | 6,500 | ||
Net income attributable to noncontrolling interests in consolidated property partnerships | 22,500 | 24,500 | ||
Depreciation and amortization of real estate assets | 278,000 | 278,000 | ||
Gains on sales of depreciable real estate | (458,000) | (458,000) | ||
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships | (35,000) | (37,000) | ||
Funds From Operations (2)
| $ | 440,900 | $ | 454,000 |
Weighted average common shares and units outstanding - diluted (3)
| 118,800 | 118,800 | ||
FFO per common share/unit - diluted (3)
| $ | 3.71 | $ | 3.82 |
Three Months Ended | ||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
High Price | $ | 73.74 | $ | 69.05 | $ | 64.31 | $ | 60.98 | $ | 68.88 |
Low Price | $ | 65.57 | $ | 54.67 | $ | 46.46 | $ | 51.74 | $ | 51.49 |
Closing Price | $ | 69.64 | $ | 65.63 | $ | 57.40 | $ | 51.96 | $ | 58.70 |
Dividends per share - annualized | $ | 2.00 | $ | 2.00 | $ | 2.00 | $ | 2.00 | $ | 1.94 |
Closing common shares (in 000s) (1)
| 116,454 | 116,450 | 116,036 | 115,247 | 115,177 | |||||
Closing common partnership units (in 000s) (1)
| 1,151 | 1,151 | 1,151 | 1,932 | 1,935 | |||||
117,605 | 117,601 | 117,187 | 117,179 | 117,112 | ||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||
ASSETS: | ||||||||||
Land and improvements | $ | 1,551,653 | $ | 1,539,542 | $ | 1,628,848 | $ | 1,612,224 | $ | 1,546,209 |
Buildings and improvements | 6,682,208 | 6,480,857 | 6,783,092 | 6,535,637 | 6,289,816 | |||||
Undeveloped land and construction in progress | 2,318,215 | 1,771,762 | 1,778,106 | 1,938,923 | 2,109,196 | |||||
Total real estate assets held for investment | 10,552,076 | 9,792,161 | 10,190,046 | 10,086,784 | 9,945,221 | |||||
Accumulated depreciation and amortization | (1,900,740) | (1,838,338) | (1,798,646) | (1,744,325) | (1,684,837) | |||||
Total real estate assets held for investment, net | 8,651,336 | 7,953,823 | 8,391,400 | 8,342,459 | 8,260,384 | |||||
Cash and cash equivalents | 519,307 | 657,819 | 731,991 | 849,009 | 605,012 | |||||
Restricted cash | 450,457 | 1,028,759 | 91,139 | 16,300 | 16,300 | |||||
Marketable securities | 25,885 | 24,089 | 27,481 | 25,073 | 23,175 | |||||
Current receivables, net | 9,773 | 12,855 | 12,007 | 16,083 | 20,925 | |||||
Deferred rent receivables, net | 384,475 | 370,470 | 386,658 | 375,939 | 358,914 | |||||
Deferred leasing costs and acquisition-related intangible assets, net | 184,510 | 190,721 | 210,949 | 208,306 | 209,637 | |||||
Right of use ground lease assets | 141,529 | 95,312 | 95,523 | 95,733 | 95,940 | |||||
Prepaid expenses and other assets, net | 67,494 | 50,505 | 53,560 | 55,706 | 68,378 | |||||
TOTAL ASSETS | $ | 10,434,766 | $ | 10,384,353 | $ | 10,000,708 | $ | 9,984,608 | $ | 9,658,665 |
LIABILITIES AND EQUITY: | ||||||||||
Liabilities: | ||||||||||
Secured debt, net | $ | 251,000 | $ | 252,298 | $ | 253,582 | $ | 254,854 | $ | 256,113 |
Unsecured debt, net | 3,672,152 | 3,671,094 | 3,670,099 | 3,668,976 | 3,399,105 | |||||
Unsecured line of credit | - | - | - | - | - | |||||
Accounts payable, accrued expenses and other liabilities | 429,168 | 408,552 | 445,100 | 458,421 | 401,378 | |||||
Ground lease liabilities | 143,885 | 97,617 | 97,778 | 97,936 | 98,093 | |||||
Accrued dividends and distributions | 59,455 | 59,472 | 59,431 | 59,416 | 57,600 | |||||
Deferred revenue and acquisition-related intangible liabilities, net | 122,902 | 123,794 | 128,523 | 131,558 | 129,264 | |||||
Rents received in advance and tenant security deposits | 62,739 | 68,634 | 68,874 | 61,483 | 63,523 | |||||
Total liabilities | 4,741,301 | 4,681,461 | 4,723,387 | 4,732,644 | 4,405,076 | |||||
Equity: | ||||||||||
Stockholders' Equity | ||||||||||
Common stock | 1,165 | 1,165 | 1,160 | 1,152 | 1,152 | |||||
Additional paid-in capital | 5,134,320 | 5,122,584 | 5,131,916 | 5,089,926 | 5,084,362 | |||||
Retained earnings (distributions in excess of earnings) | 311,458 | 334,496 | (103,133) | (122,936) | (113,223) | |||||
Total stockholders' equity | 5,446,943 | 5,458,245 | 5,029,943 | 4,968,142 | 4,972,291 | |||||
Noncontrolling Interests | ||||||||||
Common units of the Operating Partnership | 53,810 | 53,930 | 49,875 | 83,226 | 83,502 | |||||
Noncontrolling interests in consolidated property partnerships | 192,712 | 190,717 | 197,503 | 200,596 | 197,796 | |||||
Total noncontrolling interests | 246,522 | 244,647 | 247,378 | 283,822 | 281,298 | |||||
Total equity | 5,693,465 | 5,702,892 | 5,277,321 | 5,251,964 | 5,253,589 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 10,434,766 | $ | 10,384,353 | $ | 10,000,708 | $ | 9,984,608 | $ | 9,658,665 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
REVENUES | ||||||||
Rental income (1)
| $ | 224,473 | $ | 218,356 | $ | 459,129 | $ | 436,989 |
Other property income | 1,510 | 1,067 | 2,500 | 3,762 | ||||
Total revenues | 225,983 | 219,423 | 461,629 | 440,751 | ||||
EXPENSES | ||||||||
Property expenses | 40,482 | 37,829 | 79,341 | 76,812 | ||||
Real estate taxes | 22,109 | 21,854 | 47,375 | 44,056 | ||||
Ground leases | 2,023 | 2,330 | 3,851 | 4,647 | ||||
General and administrative expenses (2)
| 24,507 | 38,597 | 46,492 | 57,607 | ||||
Leasing costs | 883 | 1,330 | 1,575 | 2,786 | ||||
Depreciation and amortization | 73,589 | 80,085 | 149,521 | 154,455 | ||||
Total expenses | 163,593 | 182,025 | 328,155 | 340,363 | ||||
OTHER INCOME (EXPENSES) | ||||||||
Interest income and other net investment gain (loss) | 1,337 | 2,838 | 2,710 | (290) | ||||
Interest expense | (21,390) | (15,884) | (43,724) | (30,328) | ||||
Gain on sale of depreciable operating property (3)
| 543 | - | 457,831 | - | ||||
Total other (expenses) income | (19,510) | (13,046) | 416,817 | (30,618) | ||||
NET INCOME | 42,880 | 24,352 | 550,291 | 69,770 | ||||
Net income attributable to noncontrolling common units of the Operating Partnership | (354) | (367) | (5,240) | (1,072) | ||||
Net income attributable to noncontrolling interests in consolidated property partnerships | (6,687) | (4,367) | (11,581) | (9,263) | ||||
Total income attributable to noncontrolling interests | (7,041) | (4,734) | (16,821) | (10,335) | ||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (1)
| $ | 35,839 | $ | 19,618 | $ | 533,470 | $ | 59,435 |
Weighted average common shares outstanding - basic | 116,452 | 115,085 | 116,398 | 110,980 | ||||
Weighted average common shares outstanding - diluted | 116,917 | 115,540 | 116,860 | 111,465 | ||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE | ||||||||
Net income available to common stockholders per share - basic | $ | 0.30 | $ | 0.17 | $ | 4.58 | $ | 0.53 |
Net income available to common stockholders per share - diluted | $ | 0.30 | $ | 0.17 | $ | 4.56 | $ | 0.52 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
FUNDS FROM OPERATIONS: (1)
| ||||||||
Net income available to common stockholders | $ | 35,839 | $ | 19,618 | $ | 533,470 | $ | 59,435 |
Adjustments: | ||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 354 | 367 | 5,240 | 1,072 | ||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 6,687 | 4,367 | 11,581 | 9,263 | ||||
Depreciation and amortization of real estate assets | 72,037 | 75,981 | 146,468 | 148,419 | ||||
Gain on sale of depreciable real estate | (543) | - | (457,831) | - | ||||
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships | (9,779) | (7,244) | (18,089) | (14,927) | ||||
Funds From Operations (1)(2)
| $ | 104,595 | $ | 93,089 | $ | 220,839 | $ | 203,262 |
Weighted average common shares/units outstanding - basic (3)
| 118,340 | 118,218 | 118,337 | 114,125 | ||||
Weighted average common shares/units outstanding - diluted (4)
| 118,806 | 118,673 | 118,798 | 114,609 | ||||
FFO per common share/unit - basic (1)
| $ | 0.88 | $ | 0.79 | $ | 1.87 | $ | 1.78 |
FFO per common share/unit - diluted (1)
| $ | 0.88 | $ | 0.78 | $ | 1.86 | $ | 1.77 |
FUNDS AVAILABLE FOR DISTRIBUTION: (1)
| ||||||||
Funds From Operations (1)(2)
| $ | 104,595 | $ | 93,089 | $ | 220,839 | $ | 203,262 |
Adjustments: | ||||||||
Recurring tenant improvements, leasing commissions and capital expenditures | (20,486) | (22,366) | (47,395) | (39,429) | ||||
Amortization of deferred revenue related to tenant-funded tenant improvements (2)(5)
| (4,711) | (8,019) | (8,915) | (13,021) | ||||
Net effect of straight-line rents | (14,005) | (6,562) | (30,898) | (20,977) | ||||
Amortization of net below market rents (6)
| (1,013) | (1,914) | (2,194) | (4,500) | ||||
Amortization of deferred financing costs and net debt discount/premium | 796 | 571 | 1,590 | 1,076 | ||||
Non-cash executive compensation expense (7)
| 9,917 | 11,895 | 18,173 | 19,054 | ||||
Lease related adjustments, leasing costs and other (8)
| 977 | 1,564 | 2,612 | 5,025 | ||||
Adjustments attributable to noncontrolling interests in consolidated property partnerships | 1,091 | 201 | 1,455 | 2,868 | ||||
Funds Available for Distribution (1)
| $ | 77,161 | $ | 68,459 | $ | 155,267 | $ | 153,358 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
GAAP Net Cash Provided by Operating Activities
| $ | 72,314 | $ | 101,082 | $ | 216,466 | $ | 224,022 |
Adjustments: | ||||||||
Recurring tenant improvements, leasing commissions and capital expenditures | (20,486) | (22,366) | (47,395) | (39,429) | ||||
Depreciation of non-real estate furniture, fixtures and equipment | (1,552) | (4,104) | (3,053) | (6,036) | ||||
Net changes in operating assets and liabilities (1)
| 38,019 | 2,431 | 10,741 | (11,151) | ||||
Noncontrolling interests in consolidated property partnerships' share of FFO and FAD
| (8,688) | (7,043) | (16,634) | (12,059) | ||||
Cash adjustments related to investing and financing activities | (2,446) | (1,541) | (4,858) | (1,989) | ||||
Funds Available for Distribution(2)
| $ | 77,161 | $ | 68,459 | $ | 155,267 | $ | 153,358 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||
Operating Revenues: | ||||||||||||
Rental income (2)(3)
| $ | 198,239 | $ | 188,604 | 5.1 | % | $ | 401,451 | $ | 375,619 | 6.9 | % |
Tenant reimbursements (3)
| 26,234 | 29,752 | (11.8) | % | 57,678 | 61,370 | (6.0) | % | ||||
Other property income | 1,510 | 1,067 | 41.5 | % | 2,500 | 3,762 | (33.5) | % | ||||
Total operating revenues | 225,983 | 219,423 | 3.0 | % | 461,629 | 440,751 | 4.7 | % | ||||
Operating Expenses: | ||||||||||||
Property expenses | 40,482 | 37,829 | 7.0 | % | 79,341 | 76,812 | 3.3 | % | ||||
Real estate taxes | 22,109 | 21,854 | 1.2 | % | 47,375 | 44,056 | 7.5 | % | ||||
Ground leases | 2,023 | 2,330 | (13.2) | % | 3,851 | 4,647 | (17.1) | % | ||||
Total operating expenses | 64,614 | 62,013 | 4.2 | % | 130,567 | 125,515 | 4.0 | % | ||||
Net Operating Income | $ | 161,369 | $ | 157,410 | 2.5 | % | $ | 331,062 | $ | 315,236 | 5.0 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||
Total Same Store Portfolio | ||||||||||||
Office Portfolio | ||||||||||||
Number of properties | 111 | 111 | 111 | 111 | ||||||||
Square Feet | 13,441,929 | 13,441,929 | 13,441,929 | 13,441,929 | ||||||||
Percent of Stabilized Portfolio | 95.0 | % | 93.8 | % | 95.0 | % | 93.8 | % | ||||
Average Occupancy | 91.4 | % | 92.4 | % | 91.1 | % | 93.0 | % | ||||
Operating Revenues: | ||||||||||||
Rental income (2)(3)
| $ | 176,044 | $ | 167,912 | 4.8 | % | $ | 344,722 | $ | 338,033 | 2.0 | % |
Tenant reimbursements (2)
| 24,965 | 23,224 | 7.5 | % | 49,056 | 49,373 | (0.6) | % | ||||
Other property income | 1,249 | 919 | 35.9 | % | 2,013 | 3,183 | (36.8) | % | ||||
Total operating revenues | 202,258 | 192,055 | 5.3 | % | 395,791 | 390,589 | 1.3 | % | ||||
Operating Expenses: | ||||||||||||
Property expenses | 36,141 | 34,065 | 6.1 | % | 69,861 | 70,276 | (0.6) | % | ||||
Real estate taxes | 18,927 | 17,978 | 5.3 | % | 37,749 | 36,784 | 2.6 | % | ||||
Ground leases | 1,985 | 2,330 | (14.8) | % | 3,813 | 4,647 | (17.9) | % | ||||
Total operating expenses | 57,053 | 54,373 | 4.9 | % | 111,423 | 111,707 | (0.3) | % | ||||
GAAP Net Operating Income | $ | 145,205 | $ | 137,682 | 5.5 | % | $ | 284,368 | $ | 278,882 | 2.0 | % |
Same Store Analysis (Cash Basis) (4)
| ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||
Total operating revenues | $ | 192,203 | $ | 183,152 | 4.9 | % | $ | 377,249 | $ | 374,156 | 0.8 | % |
Total operating expenses | 57,002 | 54,322 | 4.9 | % | 111,322 | 111,604 | (0.3) | % | ||||
Cash Net Operating Income | $ | 135,201 | $ | 128,830 | 4.9 | % | $ | 265,927 | $ | 262,552 | 1.3 | % |
Portfolio Breakdown | Occupied at | Leased at | ||||||||||
STABILIZED OFFICE PORTFOLIO (1)
| Buildings | YTD NOI % | SF % | Total SF | 6/30/2021 | 3/31/2021 | 6/30/2021 | |||||
Greater Los Angeles | ||||||||||||
Culver City | 19 | 1.4 | % | 1.1 | % | 151,908 | 97.9 | % | 93.5 | % | 97.9 | % |
El Segundo | 5 | 4.9 | % | 7.7 | % | 1,093,050 | 94.8 | % | 96.5 | % | 94.8 | % |
Hollywood | 10 | 6.6 | % | 8.3 | % | 1,179,266 | 89.4 | % | 89.9 | % | 90.0 | % |
Long Beach | 7 | 2.5 | % | 6.7 | % | 955,291 | 79.1 | % | 78.4 | % | 80.1 | % |
West Hollywood | 4 | 1.0 | % | 1.3 | % | 185,925 | 75.5 | % | 89.3 | % | 78.9 | % |
West Los Angeles | 10 | 4.9 | % | 6.0 | % | 844,151 | 81.7 | % | 81.6 | % | 81.7 | % |
Total Greater Los Angeles | 55 | 21.3 | % | 31.1 | % | 4,409,591 | 86.7 | % | 87.5 | % | 87.2 | % |
San Diego County | ||||||||||||
Del Mar | 16 | 10.2 | % | 11.0 | % | 1,553,665 | 88.9 | % | 84.3 | % | 93.5 | % |
I-15 Corridor | 5 | 2.1 | % | 3.8 | % | 540,892 | 94.9 | % | 94.8 | % | 98.2 | % |
Point Loma | 1 | 0.7 | % | 0.8 | % | 107,456 | 100.0 | % | 79.0 | % | 100.0 | % |
University Towne Center | 2 | 1.3 | % | 1.5 | % | 208,290 | 92.4 | % | 94.6 | % | 92.4 | % |
Total San Diego County | 24 | 14.3 | % | 17.1 | % | 2,410,303 | 91.0 | % | 87.4 | % | 94.7 | % |
San Francisco Bay Area | ||||||||||||
Menlo Park | 7 | 2.3 | % | 2.7 | % | 378,358 | 74.2 | % | 71.7 | % | 74.2 | % |
Mountain View | 3 | 3.6 | % | 3.2 | % | 457,066 | 100.0 | % | 100.0 | % | 100.0 | % |
Palo Alto | 2 | 1.7 | % | 1.2 | % | 165,574 | 100.0 | % | 100.0 | % | 100.0 | % |
Redwood City | 2 | 3.8 | % | 2.4 | % | 347,269 | 100.0 | % | 100.0 | % | 100.0 | % |
San Francisco | 10 | 34.6 | % | 23.8 | % | 3,370,465 | 94.2 | % | 93.8 | % | 96.8 | % |
South San Francisco | 3 | 1.4 | % | 1.0 | % | 145,530 | 100.0 | % | 100.0 | % | 100.0 | % |
Sunnyvale | 4 | 5.1 | % | 4.7 | % | 663,460 | 100.0 | % | 100.0 | % | 100.0 | % |
Total San Francisco Bay Area | 31 | 52.5 | % | 39.0 | % | 5,527,722 | 94.7 | % | 94.3 | % | 96.3 | % |
Greater Seattle | ||||||||||||
Bellevue | 2 | 5.6 | % | 6.5 | % | 919,295 | 93.3 | % | 95.9 | % | 98.9 | % |
Lake Union | 6 | 6.3 | % | 6.3 | % | 884,763 | 99.9 | % | 99.9 | % | 99.9 | % |
Total Greater Seattle | 8 | 11.9 | % | 12.8 | % | 1,804,058 | 96.5 | % | 97.8 | % | 99.4 | % |
TOTAL STABILIZED OFFICE PORTFOLIO | 118 | 100.0 | % | 100.0 | % | 14,151,674 | 91.8 | % | 91.5 | % | 93.6 | % |
Average Office Occupancy | |
Quarter-to-Date | Year-to-Date |
91.7% | 91.6% |
Submarket | Square Feet | Occupied | Leased | |||
Greater Los Angeles, California | ||||||
3101-3243 La Cienega Boulevard | Culver City | 151,908 | 97.9 | % | 97.9 | % |
2240 E. Imperial Highway | El Segundo | 122,870 | 100.0 | % | 100.0 | % |
2250 E. Imperial Highway | El Segundo | 298,728 | 100.0 | % | 100.0 | % |
2260 E. Imperial Highway | El Segundo | 298,728 | 100.0 | % | 100.0 | % |
909 N. Pacific Coast Highway | El Segundo | 244,136 | 88.5 | % | 88.5 | % |
999 N. Pacific Coast Highway | El Segundo | 128,588 | 77.6 | % | 77.6 | % |
1350 Ivar Avenue | Hollywood | 16,448 | 100.0 | % | 100.0 | % |
1355 Vine Street | Hollywood | 183,129 | 100.0 | % | 100.0 | % |
1375 Vine Street | Hollywood | 159,236 | 100.0 | % | 100.0 | % |
1395 Vine Street | Hollywood | 2,575 | 100.0 | % | 100.0 | % |
1500 N. El Centro Avenue (1)
| Hollywood | 113,447 | 28.8 | % | 28.8 | % |
1525 N. Gower Street | Hollywood | 9,610 | 100.0 | % | 100.0 | % |
1575 N. Gower Street | Hollywood | 251,245 | 100.0 | % | 100.0 | % |
6115 W. Sunset Boulevard | Hollywood | 26,238 | 71.0 | % | 97.9 | % |
6121 W. Sunset Boulevard | Hollywood | 93,418 | 100.0 | % | 100.0 | % |
6255 W. Sunset Boulevard | Hollywood | 323,920 | 88.5 | % | 88.5 | % |
3750 Kilroy Airport Way | Long Beach | 10,718 | 100.0 | % | 100.0 | % |
3760 Kilroy Airport Way | Long Beach | 166,761 | 85.7 | % | 91.0 | % |
3780 Kilroy Airport Way | Long Beach | 221,452 | 96.8 | % | 96.8 | % |
3800 Kilroy Airport Way | Long Beach | 192,476 | 88.9 | % | 88.9 | % |
3840 Kilroy Airport Way (1)
| Long Beach | 136,026 | 0.0 | % | 0.0 | % |
3880 Kilroy Airport Way | Long Beach | 96,923 | 100.0 | % | 100.0 | % |
3900 Kilroy Airport Way | Long Beach | 130,935 | 91.5 | % | 91.5 | % |
8560 W. Sunset Boulevard | West Hollywood | 76,359 | 61.4 | % | 61.4 | % |
8570 W. Sunset Boulevard | West Hollywood | 45,941 | 97.1 | % | 97.1 | % |
8580 W. Sunset Boulevard (1)
| West Hollywood | 6,875 | 0.0 | % | 0.0 | % |
8590 W. Sunset Boulevard | West Hollywood | 56,750 | 85.9 | % | 97.4 | % |
12100 W. Olympic Boulevard | West Los Angeles | 152,048 | 66.0 | % | 66.0 | % |
12200 W. Olympic Boulevard | West Los Angeles | 150,832 | 90.2 | % | 90.2 | % |
12233 W. Olympic Boulevard | West Los Angeles | 151,029 | 57.8 | % | 57.8 | % |
12312 W. Olympic Boulevard | West Los Angeles | 76,644 | 100.0 | % | 100.0 | % |
1633 26th Street | West Los Angeles | 43,857 | 69.9 | % | 69.9 | % |
2100/2110 Colorado Avenue | West Los Angeles | 102,864 | 100.0 | % | 100.0 | % |
3130 Wilshire Boulevard | West Los Angeles | 90,074 | 97.6 | % | 97.6 | % |
501 Santa Monica Boulevard | West Los Angeles | 76,803 | 88.7 | % | 88.7 | % |
Total Greater Los Angeles | 4,409,591 | 86.7 | % | 87.2 | % | |
Submarket | Square Feet | Occupied | Leased | |||
San Diego County, California | ||||||
12225 El Camino Real | Del Mar | 58,401 | 100.0 | % | 100.0 | % |
12235 El Camino Real | Del Mar | 53,751 | 100.0 | % | 100.0 | % |
12340 El Camino Real (1)
| Del Mar | 89,272 | 31.2 | % | 31.2 | % |
12390 El Camino Real | Del Mar | 70,140 | 55.1 | % | 100.0 | % |
12770 El Camino Real | Del Mar | 75,035 | 100.0 | % | 100.0 | % |
12780 El Camino Real | Del Mar | 140,591 | 100.0 | % | 100.0 | % |
12790 El Camino Real | Del Mar | 87,944 | 100.0 | % | 100.0 | % |
12860 El Camino Real | Del Mar | 92,042 | 82.4 | % | 100.0 | % |
12348 High Bluff Drive | Del Mar | 39,193 | 67.8 | % | 67.8 | % |
12400 High Bluff Drive | Del Mar | 210,732 | 100.0 | % | 100.0 | % |
3579 Valley Centre Drive
| Del Mar | 54,960 | 100.0 | % | 100.0 | % |
3611 Valley Centre Drive | Del Mar | 130,109 | 100.0 | % | 100.0 | % |
3661 Valley Centre Drive | Del Mar | 128,364 | 82.6 | % | 82.6 | % |
3721 Valley Centre Drive | Del Mar | 115,193 | 79.5 | % | 100.0 | % |
3811 Valley Centre Drive | Del Mar | 112,067 | 100.0 | % | 100.0 | % |
3745 Paseo Place | Del Mar | 95,871 | 95.0 | % | 95.0 | % |
13280 Evening Creek Drive South | I-15 Corridor | 41,196 | 100.0 | % | 100.0 | % |
13290 Evening Creek Drive South | I-15 Corridor | 61,180 | 100.0 | % | 100.0 | % |
13480 Evening Creek Drive North | I-15 Corridor | 154,157 | 94.4 | % | 100.0 | % |
13500 Evening Creek Drive North | I-15 Corridor | 137,658 | 100.0 | % | 100.0 | % |
13520 Evening Creek Drive North | I-15 Corridor | 146,701 | 87.0 | % | 93.4 | % |
2305 Historic Decatur Road | Point Loma | 107,456 | 100.0 | % | 100.0 | % |
4690 Executive Drive | University Towne Center | 47,846 | 67.1 | % | 67.1 | % |
9455 Towne Centre Drive | University Towne Center | 160,444 | 100.0 | % | 100.0 | % |
Total San Diego County | 2,410,303 | 91.0 | % | 94.7 | % | |
Submarket | Square Feet | Occupied | Leased | |||
San Francisco Bay Area, California | ||||||
4100 Bohannon Drive | Menlo Park | 47,379 | 100.0 | % | 100.0 | % |
4200 Bohannon Drive | Menlo Park | 45,451 | 70.8 | % | 70.8 | % |
4300 Bohannon Drive (1)
| Menlo Park | 63,079 | 48.7 | % | 48.7 | % |
4400 Bohannon Drive (1)
| Menlo Park | 48,146 | 21.3 | % | 21.3 | % |
4500 Bohannon Drive | Menlo Park | 63,078 | 100.0 | % | 100.0 | % |
4600 Bohannon Drive | Menlo Park | 48,147 | 70.7 | % | 70.7 | % |
4700 Bohannon Drive | Menlo Park | 63,078 | 100.0 | % | 100.0 | % |
1290-1300 Terra Bella Avenue | Mountain View | 114,175 | 100.0 | % | 100.0 | % |
680 E. Middlefield Road | Mountain View | 171,676 | 100.0 | % | 100.0 | % |
690 E. Middlefield Road | Mountain View | 171,215 | 100.0 | % | 100.0 | % |
1701 Page Mill Road | Palo Alto | 128,688 | 100.0 | % | 100.0 | % |
3150 Porter Drive | Palo Alto | 36,886 | 100.0 | % | 100.0 | % |
900 Jefferson Avenue | Redwood City | 228,505 | 100.0 | % | 100.0 | % |
900 Middlefield Road | Redwood City | 118,764 | 100.0 | % | 100.0 | % |
100 Hooper Street | San Francisco | 394,340 | 97.2 | % | 97.2 | % |
100 First Street | San Francisco | 480,457 | 98.3 | % | 99.0 | % |
303 Second Street | San Francisco | 784,658 | 88.2 | % | 93.2 | % |
201 Third Street | San Francisco | 346,538 | 90.1 | % | 90.1 | % |
360 Third Street | San Francisco | 429,796 | 88.8 | % | 99.6 | % |
250 Brannan Street | San Francisco | 100,850 | 100.0 | % | 100.0 | % |
301 Brannan Street | San Francisco | 82,834 | 100.0 | % | 100.0 | % |
333 Brannan Street | San Francisco | 185,602 | 100.0 | % | 100.0 | % |
345 Brannan Street | San Francisco | 110,050 | 99.7 | % | 99.7 | % |
350 Mission Street | San Francisco | 455,340 | 99.7 | % | 99.7 | % |
345 Oyster Point Boulevard | South San Francisco | 40,410 | 100.0 | % | 100.0 | % |
347 Oyster Point Boulevard | South San Francisco | 39,780 | 100.0 | % | 100.0 | % |
349 Oyster Point Boulevard | South San Francisco | 65,340 | 100.0 | % | 100.0 | % |
505 Mathilda Avenue | Sunnyvale | 212,322 | 100.0 | % | 100.0 | % |
555 Mathilda Avenue | Sunnyvale | 212,322 | 100.0 | % | 100.0 | % |
599 Mathilda Avenue | Sunnyvale | 76,031 | 100.0 | % | 100.0 | % |
605 Mathilda Avenue | Sunnyvale | 162,785 | 100.0 | % | 100.0 | % |
Total San Francisco Bay Area | 5,527,722 | 94.7 | % | 96.3 | % | |
Submarket | Square Feet | Occupied | Leased | |||
Greater Seattle, Washington | ||||||
601 108th Avenue NE | Bellevue | 490,738 | 88.8 | % | 98.7 | % |
10900 NE 4th Street | Bellevue | 428,557 | 98.4 | % | 99.2 | % |
701 N. 34th Street | Lake Union | 141,860 | 100.0 | % | 100.0 | % |
801 N. 34th Street | Lake Union | 169,412 | 100.0 | % | 100.0 | % |
837 N. 34th Street | Lake Union | 112,487 | 100.0 | % | 100.0 | % |
320 Westlake Avenue North | Lake Union | 184,644 | 99.4 | % | 99.4 | % |
321 Terry Avenue North | Lake Union | 135,755 | 100.0 | % | 100.0 | % |
401 Terry Avenue North | Lake Union | 140,605 | 100.0 | % | 100.0 | % |
Total Greater Seattle | 1,804,058 | 96.5 | % | 99.4 | % | |
TOTAL STABILIZED OFFICE PORTFOLIO | 14,151,674 | 91.8 | % | 93.6 | % | |
Total No. of Units | Average Residential Occupancy | |||
COMPLETED RESIDENTIAL PROPERTIES | Submarket | Quarter-to-Date | Year-to-Date | |
Greater Los Angeles | ||||
1550 N. El Centro Avenue | Hollywood | 200 | 93.5% | 91.4% |
6390 De Longpre Avenue | Hollywood | 193 | 4.4% | 4.4% |
San Diego County | ||||
3200 Paseo Village Way | Del Mar | 608 | 79.1% | 70.7% |
TOTAL COMPLETED RESIDENTIAL PROPERTIES | 1,001 | 71.9% | 70.6% | |
1st & 2nd Generation | 2nd Generation | ||||||||||||||
# of Leases (2)
|
Square Feet (2)
|
Retention Rates |
TI/LC
Per Sq.Ft. (3)
|
TI/LC
Per Sq.Ft. /Year (3)
|
Changes in GAAP Rents |
Changes in Cash Rents |
Weighted Average Lease Term (Mo.) | ||||||||
New | Renewal | New | Renewal | ||||||||||||
Quarter to Date | 10 | 8 | 138,543 | 65,571 | 39.1 | % | $ | 61.73 | $ | 10.43 | 45.2 | % | 24.0 | % | 71 |
Year to Date | 22 | 21 | 594,296 | 206,271 | 40.8 | % | 74.24 | 11.00 | 54.2 | % | 31.5 | % | 81 | ||
1st & 2nd Generation | 2nd Generation | ||||||||||||
# of Leases (4)
|
Square Feet (4)
|
TI/LC
Per Sq.Ft. (3)
|
TI/LC
Per Sq.Ft. /Year (3)
|
Changes in GAAP Rents |
Changes in Cash Rents |
Weighted Average Lease Term (Mo.) | |||||||
New | Renewal | New | Renewal | ||||||||||
Quarter to Date (5)
| 10 | 8 | 131,933 | 65,571 | $ | 48.06 | $ | 9.01 | 25.6 | % | 8.7 | % | 64 |
Year to Date (6)
| 19 | 21 | 198,592 | 206,271 | 30.48 | 7.32 | 20.1 | % | 6.7 | % | 50 | ||
Total 2021 | Q2 2021 | Q1 2021 | ||||
1st Generation (Nonrecurring) Capital Expenditures: (1)
| ||||||
Capital Improvements | $ | 10,812 | $ | 5,856 | $ | 4,956 |
Tenant Improvements & Leasing Commissions (2)
| 425 | - | 425 | |||
Total | $ | 11,237 | $ | 5,856 | $ | 5,381 |
Total 2021 | Q2 2021 | Q1 2021 | ||||
2nd Generation (Recurring) Capital Expenditures: (1)
| ||||||
Capital Improvements | $ | 14,457 | $ | 7,659 | $ | 6,798 |
Tenant Improvements & Leasing Commissions (2)
| 32,938 | 12,827 | 20,111 | |||
Total | $ | 47,395 | $ | 20,486 | $ | 26,909 |
Year of Expiration |
# of Expiring Leases |
Total Square Feet |
% of Total Leased Sq. Ft. |
Annualized
Base Rent (1)
|
% of Total Annualized Base Rent |
Annualized Rent per Sq. Ft. | ||||
Remaining 2021 (2)
| 33 | 333,304 | 2.6 | % | $ | 14,887 | 2.2 | % | $ | 44.66 |
2022 (2)
| 72 | 768,814 | 6.0 | % | 31,827 | 4.7 | % | 41.40 | ||
2023 | 76 | 1,196,717 | 9.4 | % | 63,640 | 9.3 | % | 53.18 | ||
2024 | 63 | 989,196 | 7.7 | % | 48,365 | 7.1 | % | 48.89 | ||
2025 | 56 | 773,736 | 6.0 | % | 38,943 | 5.7 | % | 50.33 | ||
2026 | 43 | 1,717,490 | 13.4 | % | 78,698 | 11.5 | % | 45.82 | ||
2027 (3)
| 35 | 1,274,714 | 10.0 | % | 51,882 | 7.6 | % | 40.70 | ||
2028 | 23 | 977,618 | 7.6 | % | 61,903 | 9.1 | % | 63.32 | ||
2029 | 21 | 832,267 | 6.5 | % | 47,373 | 6.9 | % | 56.92 | ||
2030 | 34 | 1,348,043 | 10.6 | % | 74,638 | 10.9 | % | 55.37 | ||
2031 and beyond | 36 | 2,584,376 | 20.2 | % | 171,462 | 25.0 | % | 66.35 | ||
Total (4)
| 492 | 12,796,275 | 100.0 | % | $ | 683,618 | 100.0 | % | $ | 53.42 |
Year
| Region |
# of Expiring Leases |
Total Square Feet |
% of Total Leased Sq. Ft. |
Annualized
Base Rent (1)
|
% of Total Annualized Base Rent |
Annualized Rent per Sq. Ft. | ||||
2021 | Greater Los Angeles | 23 | 143,422 | 1.1 | % | $ | 5,902 | 0.9 | % | $ | 41.15 |
San Diego | 3 | 11,967 | 0.1 | % | 415 | 0.1 | % | 34.68 | |||
San Francisco Bay Area | 6 | 176,643 | 1.4 | % | 8,512 | 1.2 | % | 48.19 | |||
Greater Seattle | 1 | 1,272 | - | % | 58 | - | % | 45.60 | |||
Total | 33 | 333,304 | 2.6 | % | $ | 14,887 | 2.2 | % | $ | 44.66 | |
2022 | Greater Los Angeles | 53 | 473,871 | 3.7 | % | $ | 19,973 | 2.9 | % | $ | 42.15 |
San Diego | 10 | 214,463 | 1.7 | % | 7,617 | 1.1 | % | 35.52 | |||
San Francisco Bay Area | 5 | 50,108 | 0.4 | % | 3,180 | 0.5 | % | 63.46 | |||
Greater Seattle | 4 | 30,372 | 0.2 | % | 1,057 | 0.2 | % | 34.80 | |||
Total | 72 | 768,814 | 6.0 | % | $ | 31,827 | 4.7 | % | $ | 41.40 | |
2023 | Greater Los Angeles | 39 | 388,287 | 3.0 | % | $ | 20,763 | 3.0 | % | $ | 53.47 |
San Diego | 11 | 194,835 | 1.5 | % | 8,057 | 1.2 | % | 41.35 | |||
San Francisco Bay Area | 17 | 498,529 | 3.9 | % | 31,059 | 4.5 | % | 62.30 | |||
Greater Seattle | 9 | 115,066 | 1.0 | % | 3,761 | 0.6 | % | 32.69 | |||
Total | 76 | 1,196,717 | 9.4 | % | $ | 63,640 | 9.3 | % | $ | 53.18 | |
2024 | Greater Los Angeles | 35 | 475,631 | 3.7 | % | $ | 21,039 | 3.1 | % | $ | 44.23 |
San Diego | 7 | 49,630 | 0.4 | % | 2,809 | 0.4 | % | 56.60 | |||
San Francisco Bay Area | 14 | 258,768 | 2.0 | % | 16,845 | 2.5 | % | 65.10 | |||
Greater Seattle | 7 | 205,167 | 1.6 | % | 7,672 | 1.1 | % | 37.39 | |||
Total | 63 | 989,196 | 7.7 | % | $ | 48,365 | 7.1 | % | $ | 48.89 | |
2025 | Greater Los Angeles | 18 | 178,831 | 1.4 | % | $ | 7,782 | 1.1 | % | $ | 43.52 |
San Diego | 21 | 194,692 | 1.4 | % | 9,248 | 1.4 | % | 47.50 | |||
San Francisco Bay Area | 8 | 263,914 | 2.1 | % | 16,516 | 2.4 | % | 62.58 | |||
Greater Seattle | 9 | 136,299 | 1.1 | % | 5,397 | 0.8 | % | 39.60 | |||
Total | 56 | 773,736 | 6.0 | % | $ | 38,943 | 5.7 | % | $ | 50.33 | |
2026 and Beyond | Greater Los Angeles | 49 | 2,042,798 | 16.0 | % | $ | 94,230 | 13.8 | % | $ | 46.13 |
San Diego | 63 | 1,501,038 | 11.8 | % | 78,466 | 11.5 | % | 52.27 | |||
San Francisco Bay Area | 48 | 3,944,874 | 30.8 | % | 261,762 | 38.2 | % | 66.35 | |||
Greater Seattle | 32 | 1,245,798 | 9.7 | % | 51,498 | 7.5 | % | 41.34 | |||
Total | 192 | 8,734,508 | 68.3 | % | $ | 485,956 | 71.0 | % | $ | 55.64 | |
# of Expiring Leases |
Total Square Feet |
% of Total Leased Sq. Ft. |
Annualized
Base Rent (1)
|
% of Total Annualized Base Rent |
Annualized Rent per Sq. Ft. | |||||
2021: | ||||||||||
Q3 2021 | 15 | 222,913 | 1.7 | % | $ | 10,553 | 1.6 | % | $ | 47.34 |
Q4 2021 | 18 | 110,391 | 0.9 | % | 4,334 | 0.6 | % | 39.26 | ||
Total 2021 (2)
| 33 | 333,304 | 2.6 | % | $ | 14,887 | 2.2 | % | $ | 44.66 |
2022: | ||||||||||
Q1 2022 | 23 | 285,935 | 2.2 | % | $ | 10,362 | 1.5 | % | $ | 36.24 |
Q2 2022 | 16 | 113,289 | 0.9 | % | 4,620 | 0.7 | % | 40.78 | ||
Q3 2022 | 15 | 159,825 | 1.3 | % | 6,494 | 0.9 | % | 40.63 | ||
Q4 2022 | 18 | 209,765 | 1.6 | % | 10,351 | 1.6 | % | 49.35 | ||
Total 2022 (2)
| 72 | 768,814 | 6.0 | % | $ | 31,827 | 4.7 | % | $ | 41.40 |
Tenant Name | Region |
Annualized Base Rental Revenue (2)
|
Rentable Square Feet |
Percentage of Total Annualized Base Rental Revenue |
Percentage of Total Rentable Square Feet | Year(s) of Lease Expiration | |||
GM Cruise, LLC | San Francisco Bay Area | $ | 36,337 | 374,618 | 5.2 | % | 2.6 | % | 2031 |
LinkedIn Corporation / Microsoft Corporation | San Francisco Bay Area | 29,752 | 663,460 | 4.3 | % | 4.6 | % | 2024 / 2026 | |
Adobe Systems, Inc. | San Francisco Bay Area / Greater Seattle | 27,897 | 513,111 | 4.0 | % | 3.5 | % | 2027 / 2031 | |
salesforce.com, inc. | San Francisco Bay Area | 24,076 | 451,763 | 3.4 | % | 3.1 | % | 2031 / 2032 | |
DIRECTV, LLC (3)
| Greater Los Angeles | 23,152 | 684,411 | 3.3 | % | 4.7 | % | 2027 | |
Fortune 50 Publicly-Traded Company | Greater Seattle / San Diego County | 23,059 | 472,427 | 3.3 | % | 3.3 | % | 2032 / 2033 | |
Box, Inc. | San Francisco Bay Area | 22,441 | 372,673 | 3.2 | % | 2.6 | % | 2021 / 2028 | |
Okta, Inc. | San Francisco Bay Area | 22,387 | 273,371 | 3.2 | % | 1.9 | % | 2028 | |
Netflix, Inc. | Greater Los Angeles | 21,943 | 362,868 | 3.1 | % | 2.5 | % | 2021 / 2032 | |
DoorDash, Inc. | San Francisco Bay Area | 18,650 | 184,968 | 2.7 | % | 1.3 | % | 2032 | |
Amazon.com | Greater Seattle | 16,923 | 405,278 | 2.4 | % | 2.8 | % | 2023 / 2029 / 2030 | |
Synopsys, Inc. | San Francisco Bay Area | 15,492 | 342,891 | 2.2 | % | 2.4 | % | 2030 | |
Riot Games, Inc. | Greater Los Angeles | 15,152 | 243,051 | 2.2 | % | 1.7 | % | 2023 / 2024 | |
Neurocrine Biosciences, Inc. | San Diego County | 13,914 | 254,578 | 2.0 | % | 1.8 | % | 2024 / 2031 | |
Viacom International, Inc. | Greater Los Angeles | 13,718 | 211,343 | 2.0 | % | 1.5 | % | 2028 | |
Total Top Fifteen Tenants | $ | 324,893 | 5,810,811 | 46.5 | % | 40.3 | % | ||
COMPLETED OPERATING PROPERTY DISPOSITIONS | Submarket |
Month of Disposition | No. of Buildings |
Rentable Square Feet |
Sales Price (1) | |
1st Quarter | ||||||
1800 Owens Street, San Francisco, CA (The Exchange on 16th) | San Francisco | March | 1 | 750,370 | $ | 1.08 |
2nd Quarter | ||||||
None | ||||||
TOTAL DISPOSITIONS | 1 | 750,370 | $ | 1.08 | ||
Property (1)
| Venture Partner | Submarket | Rentable Square Feet | KRC Ownership % |
100 First Street, San Francisco, CA | Norges Bank Real Estate Management | San Francisco | 480,457 | 56% |
303 Second Street, San Francisco, CA | Norges Bank Real Estate Management | San Francisco | 784,658 | 56% |
900 Jefferson Avenue and 900 Middlefield Road, Redwood City, CA (2)
| Local developer | Redwood City | 347,269 | 93% |
STABILIZED OFFICE DEVELOPMENT PROJECTS | Location | Construction Start Date |
Stabilization Date (1)
| Total Estimated Investment |
Rentable Square Feet | Total Project % Occupied | |
1st Quarter | |||||||
9455 Towne Centre Drive | University Towne Center | 1Q 2019 | 1Q 2021 | $ | 95.0 | 160,444 | 100% |
2nd Quarter | |||||||
12860 El Camino Real (One Paseo - Office Building 1) | Del Mar | 4Q 2018 | 2Q 2021 | 65.0 | 92,042 | 82% | |
TOTAL: | $ | 160.0 | 252,486 | 94% | |||
COMPLETED RESIDENTIAL DEVELOPMENT PROJECTS | Location | Construction Start Date | Completion Date | Total Estimated Investment | Number of Units | % Leased | |
1st Quarter | |||||||
None | |||||||
2nd Quarter | |||||||
Jardine | Hollywood | 4Q 2018 | 2Q 2021 | $ | 185.0 | 193 | 30% |
TOTAL: | $ | 185.0 | 193 | 30% | |||
Location | Construction Start Date |
Estimated Stabilization Date (2)
| Estimated Rentable Square Feet | Total Estimated Investment |
Total Cash Costs Incurred as of
6/30/2021 (3)
| % Leased | Total Project % Occupied | |||
TENANT IMPROVEMENT(1)
| ||||||||||
Office / Life Science | ||||||||||
San Francisco Bay Area | ||||||||||
Kilroy Oyster Point - Phase 1 | South San Francisco | 1Q 2019 | 4Q 2021 | 656,000 | $ | 570.0 | $ | 402.6 | 100% | -% |
San Diego County | ||||||||||
One Paseo - Office (Building 2) | Del Mar | 4Q 2018 | 3Q 2021 | 195,000 | 145.0 | 137.9 | 100% | 89% | ||
Greater Seattle | ||||||||||
333 Dexter | South Lake Union | 2Q 2017 | 3Q 2022 | 635,000 | 410.0 | 345.2 | 100% | 49% | ||
Austin | ||||||||||
Indeed Tower (4)
| Austin CBD | 2Q 2021 | 4Q 2022 | 734,000 | 680.0 | 545.5 | 57% | -% | ||
TOTAL: | 2,220,000 | $ | 1,805.0 | $ | 1,431.2 | 86% | 22% | |||
UNDER CONSTRUCTION | Location | Construction Start Date |
Estimated Stabilization Date (2)
| Estimated Rentable Square Feet | Total Estimated Investment |
Total Cash Costs Incurred as of
6/30/2021 (3)
| Office % Leased | ||
Office / Life Science | |||||||||
San Francisco Bay Area | |||||||||
Kilroy Oyster Point - Phase 2 (5)
| South San Francisco | 2Q 2021 | 4Q 2024 | 875,000 | $ | 940.0 | $ | 157.2 | -% |
San Diego County | |||||||||
2100 Kettner | Little Italy | 3Q 2019 | 3Q 2022 | 235,000 | 140.0 | 104.9 | -% | ||
TOTAL: | 1,110,000 | $ | 1,080.0 | $ | 262.1 | -% | |||
COMMITTED | Location | Potential Start Date |
Approx. Developable
Square Feet (6)
| Total Estimated Investment |
Total Cash Costs Incurred as of
6/30/2021 (3)
| ||
Office | |||||||
San Diego County | |||||||
9514 Towne Centre Drive (7)
| University Towne Center | 4Q 2021 | 71,000 | $ | 60.0 | $ | 6.8 |
FUTURE DEVELOPMENT PIPELINE | Location |
Approx. Developable
Square Feet (1)
|
Total Cash Costs Incurred as of 6/30/2021 (2)
| |
San Diego County | ||||
Santa Fe Summit - Phases 2 and 3 | 56 Corridor | 600,000 - 650,000 | $ | 81.2 |
2045 Pacific Highway | Little Italy | 275,000 | 47.3 | |
Kilroy East Village | East Village | TBD | 59.6 | |
San Francisco Bay Area | ||||
Kilroy Oyster Point - Phases 3 and 4 (3)
| South San Francisco | 875,000 - 1,000,000 | 195.4 | |
Flower Mart | SOMA | 2,300,000 | 414.4 | |
Greater Seattle | ||||
SIX0 - Office & Residential | Seattle CBD | TBD | 142.2 | |
TOTAL: | $ | 940.1 | ||
Shares/Units June 30, 2021 |
Aggregate Principal Amount or $ Value Equivalent |
% of Total Market Capitalization | |||
DEBT: (1)(2)
| |||||
Unsecured Senior Notes due 2023 | $ | 300,000 | 2.5 | % | |
Unsecured Senior Notes due 2024 | 425,000 | 3.5 | % | ||
Unsecured Senior Notes due 2025 | 400,000 | 3.3 | % | ||
Unsecured Senior Notes Series A & B due 2026 | 250,000 | 2.0 | % | ||
Unsecured Senior Notes due 2028 | 400,000 | 3.3 | % | ||
Unsecured Senior Notes due 2029 | 400,000 | 3.3 | % | ||
Unsecured Senior Notes Series A & B due 2027 & 2029 | 250,000 | 2.0 | % | ||
Unsecured Senior Notes due 2030 | 500,000 | 4.1 | % | ||
Unsecured Senior Notes due 2031 | 350,000 | 2.9 | % | ||
Unsecured Senior Notes due 2032 | 425,000 | 3.5 | % | ||
Secured Debt | 251,720 | 2.1 | % | ||
Total Debt | $ | 3,951,720 | 32.5 | % | |
EQUITY AND NONCONTROLLING INTEREST IN THE OPERATING PARTNERSHIP: (3)
| |||||
Common limited partnership units outstanding (4)
| 1,150,574 | $ | 80,126 | 0.7 | % |
Shares of common stock outstanding | 116,454,210 | 8,109,871 | 66.8 | % | |
Total Equity and Noncontrolling Interests in the Operating Partnership | $ | 8,189,997 | 67.5 | % | |
TOTAL MARKET CAPITALIZATION | $ | 12,141,717 | 100.0 | % | |
TOTAL DEBT COMPOSITION (1)
| |||
Percent of Total Debt | Weighted Average | ||
Interest Rate | Years to Maturity | ||
Secured vs. Unsecured Debt | |||
Unsecured Debt | 93.6% | 3.8% | 6.8 |
Secured Debt | 6.4% | 3.9% | 5.6 |
Floating vs. Fixed-Rate Debt | |||
Floating-Rate Debt | -% | -% | - |
Fixed-Rate Debt | 100.0% | 3.8% | 6.7 |
Stated Interest Rate | 3.8% | 6.7 | |
GAAP Effective Rate | 3.8% | ||
GAAP Effective Rate Including Debt Issuance Costs | 4.0% | ||
KEY DEBT COVENANTS | ||
Covenant |
Actual Performance as of June 30, 2021 | |
Unsecured Credit Facility and Private Placement Notes (as defined in the Credit Agreements): | ||
Total debt to total asset value | less than 60% | 28% |
Fixed charge coverage ratio | greater than 1.5x | 3.0x |
Unsecured debt ratio | greater than 1.67x | 3.23x |
Unencumbered asset pool debt service coverage | greater than 1.75x | 3.55x |
Unsecured Senior Notes due 2023, 2024, 2025, 2028, 2029, 2030 and 2032 (as defined in the Indentures):
| ||
Total debt to total asset value | less than 60% | 35% |
Interest coverage | greater than 1.5x | 7.2x |
Secured debt to total asset value | less than 40% | 2% |
Unencumbered asset pool value to unsecured debt | greater than 150% | 321% |
DEBT MATURITY SCHEDULE | |||||||||||||||
Floating/ Fixed Rate |
Stated Rate |
Maturity Date | 2021 | 2022 | 2023 | 2024 | 2025 | After 2025 |
Total (1)
| ||||||
Unsecured Debt(2):
| |||||||||||||||
Fixed
| 3.80% | 1/15/2023 | $ | 300,000 | $ | 300,000 | |||||||||
Fixed | 3.45% | 12/15/2024 | $ | 425,000 | 425,000 | ||||||||||
Fixed | 4.38% | 10/1/2025 | $ | 400,000 | 400,000 | ||||||||||
Fixed | 4.30% | 7/18/2026 | $ | 50,000 | 50,000 | ||||||||||
Fixed | 4.35% | 10/18/2026 | 200,000 | 200,000 | |||||||||||
Fixed | 3.35% | 2/17/2027 | 175,000 | 175,000 | |||||||||||
Fixed | 4.75% | 12/15/2028 | 400,000 | 400,000 | |||||||||||
Fixed | 3.45% | 2/17/2029 | 75,000 | 75,000 | |||||||||||
Fixed | 4.25% | 8/15/2029 | 400,000 | 400,000 | |||||||||||
Fixed | 3.05% | 2/15/2030 | 500,000 | 500,000 | |||||||||||
Fixed | 4.27% | 1/31/2031 | 350,000 | 350,000 | |||||||||||
Fixed | 2.50% | 11/15/2032 | 425,000 | 425,000 | |||||||||||
Total unsecured debt | 3.78% | - | - | 300,000 | 425,000 | 400,000 | 2,575,000 | 3,700,000 | |||||||
Secured Debt: | |||||||||||||||
Fixed | 3.57% | 12/1/2026 | $ | 1,686 | $ | 3,462 | 3,587 | 3,718 | 3,853 | 148,814 | 165,120 | ||||
Fixed | 4.48% | 7/1/2027 | 1,012 | 2,092 | 2,188 | 2,288 | 2,393 | 76,627 | 86,600 | ||||||
Total secured debt | 3.88% | 2,698 | 5,554 | 5,775 | 6,006 | 6,246 | 225,441 | 251,720 | |||||||
Total | 3.78% | $ | 2,698 | $ | 5,554 | $ | 305,775 | $ | 431,006 | $ | 406,246 | $ | 2,800,441 | $ | 3,951,720 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Net Income Available to Common Stockholders | $ | 35,839 | $ | 19,618 | $ | 533,470 | $ | 59,435 |
Net income attributable to noncontrolling common units of the Operating Partnership | 354 | 367 | 5,240 | 1,072 | ||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 6,687 | 4,367 | 11,581 | 9,263 | ||||
Net Income | 42,880 | 24,352 | 550,291 | 69,770 | ||||
Adjustments: | ||||||||
General and administrative expenses | 24,507 | 38,597 | 46,492 | 57,607 | ||||
Acquisition-related expenses | - | - | - | - | ||||
Leasing costs | 883 | 1,330 | 1,575 | 2,786 | ||||
Depreciation and amortization | 73,589 | 80,085 | 149,521 | 154,455 | ||||
Interest income and other net investment (gain) loss | (1,337) | (2,838) | (2,710) | 290 | ||||
Interest expense | 21,390 | 15,884 | 43,724 | 30,328 | ||||
Gain on sale of depreciable operating property | (543) | - | (457,831) | - | ||||
Net Operating Income, as defined (1)
| 161,369 | 157,410 | 331,062 | 315,236 | ||||
Wholly-Owned Properties | 134,903 | 137,168 | 281,328 | 273,483 | ||||
Consolidated property partnerships: (2)
| ||||||||
100 First Street (3)
| 6,179 | 4,928 | 12,576 | 10,388 | ||||
303 Second Street (3)
| 14,418 | 9,621 | 25,256 | 19,883 | ||||
Crossing/900 (4)
| 5,869 | 5,693 | 11,902 | 11,482 | ||||
Net Operating Income, as defined (1)
| 161,369 | 157,410 | 331,062 | 315,236 | ||||
Non-Same Store GAAP Net Operating Income (5)
| (16,164) | (19,728) | (46,694) | (36,354) | ||||
Same Store GAAP Net Operating Income | 145,205 | 137,682 | 284,368 | 278,882 | ||||
GAAP to Cash Adjustments: | ||||||||
GAAP Operating Revenues Adjustments, net (6)
| (10,055) | (8,903) | (18,542) | (16,433) | ||||
GAAP Operating Expenses Adjustments, net (7)
| 51 | 51 | 101 | 103 | ||||
Same Store Cash Net Operating Income | $ | 135,201 | $ | 128,830 | $ | 265,927 | $ | 262,552 |
Three Months Ended June 30, | ||||
2021 | 2020 | |||
Net Income Available to Common Stockholders | $ | 35,839 | $ | 19,618 |
Interest expense | 21,390 | 15,884 | ||
Depreciation and amortization | 73,589 | 80,085 | ||
Net income attributable to noncontrolling common units of the Operating Partnership | 354 | 367 | ||
Net income attributable to noncontrolling interests in consolidated property partnerships | 6,687 | 4,367 | ||
Gain on sale of depreciable operating property | (543) | - | ||
EBITDA, as adjusted (1)
| $ | 137,316 | $ | 120,321 |
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Disclaimer
Kilroy Realty Corporation published this content on 28 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 00:56:08 UTC.