Kilroy Realty Selling $309 Million of Office Properties
April 29 2015 - 4:43PM
Business Wire
$146 Million Closed in April; $163 Million
in Escrow
Kilroy Realty Corporation (NYSE: KRC) announced today
that it has sold or is in escrow to sell ten West Coast office
buildings for gross proceeds of approximately $309.2 million. In
aggregate, the properties total 1.0 million square feet and were
approximately 84% occupied at March 31, 2015. As part of the
company’s capital recycling strategy, the company will use the
proceeds to fund its expanding West Coast office development
program and potential acquisition opportunities, pay down its line
of credit and for other general corporate purposes.
Details of the transactions are as follows:
- In the first quarter, the company
entered into contract to sell nine office buildings in San Diego,
California in two tranches:
- The company completed the sale of three
office buildings in mid-April, 10770 Wateridge Circle and 6200 and
6220 Greenwich Drive, for $95.0 million in gross proceeds.
- The company expects to complete the
sale of the second tranche for $163.0 million later in the second
quarter. The six office buildings in this tranche include 6260,
6290, 6310, 6340, and 6350 Sequence Drive and 4921 Directors
Place.
- Separately, in late-April, the company
completed the sale of 15050 NE 36th Street in Redmond, Washington
for gross proceeds of $51.2 million.
“We continue to be pleased with our ability to successfully
execute our strategic plan of recycling capital into our
state-of-the-art, value-creating development program,” said John
Kilroy, chairman, president and CEO of Kilroy Realty. "The sales
prices in these transactions reflect strong investor demand for
well-located, high quality properties.”
About Kilroy Realty Corporation. With more than 65 years’
experience owning, developing, acquiring and managing real estate
assets in West Coast real estate markets, Kilroy Realty Corporation
(KRC), is one of the region’s premier landlords. A publicly traded
real estate investment trust and member of the S&P MidCap 400
Index, 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 December 31, 2014, the company’s stabilized portfolio totaled
14.1 million square feet of office properties, all located in the
coastal regions of greater Seattle, the San Francisco Bay Area, Los
Angeles, Orange County and San Diego. The company is recognized by
the Global Real Estate Sustainability Benchmark (GRESB) as the
North American leader in sustainability and was ranked first among
151 North American participants across all asset types. At the end
of the fourth quarter, the company’s properties were 39% LEED
certified and 56% of eligible properties were ENERGY STAR
certified. In addition, KRC had approximately 1.7 million square
feet of new office and mixed-use development under construction
representing a total estimated investment of approximately $1.0
billion. 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 forward-looking statements, and
you should not rely on 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 forward-looking statements, including,
among others, risks associated with: investment in real estate
assets, which are illiquid; trends in the real estate industry;
significant competition, which may decrease the occupancy and
rental rates of properties; the ability to successfully complete
acquisitions and dispositions on announced terms; the ability to
successfully operate acquired properties; the availability of cash
for distribution and debt service and exposure of risk of default
under debt obligations; adverse changes to, or implementations of,
applicable laws, regulations or legislation; and the ability to
successfully complete development and redevelopment projects on
schedule and within budgeted amounts. These factors are not
exhaustive. 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, 2014 and
our other filings with the Securities and Exchange Commission. All
forward-looking statements are based on information that was
available, 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 required in connection with ongoing requirements under U.S.
securities laws.
Kilroy Realty CorporationTyler H. RoseExecutive Vice
Presidentand Chief Financial Officer310-481-8484orMichelle
NgoSenior Vice President and Treasurer310-481-8581
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