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Section 1: 8-K (8-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15 (d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
May 6, 2019

KILROY REALTY CORPORATION
(Exact name of registrant as specified in its charter)

 
Maryland
 
1-12675
 
95-4598246
 
 
(State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification No.)
 
 
 
 
 
 
 
 
12200 W. Olympic Boulevard, Suite 200,
 Los Angeles, California
 
 
 
90064
 
 
(Address of principal executive offices)
 
 
 
(Zip Code)
 

Registrant’s telephone number, including area code:
(310) 481-8400

N/A
(Former name or former address, if changed since last report.)
Securities registered pursuant to Section 12(b) of the Act:
Registrant
Title of each class
Name of each exchange on which registered
Ticker Symbol
Kilroy Realty Corporation
Common Stock, $.01 par value
New York Stock Exchange
KRC


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o







Item 2.02    Results of Operations and Financial Condition.

On May 6, 2019, Kilroy Realty Corporation issued a press release announcing its earnings for the quarter ended March 31, 2019 and distributed certain supplemental financial information. On May 6, 2019, Kilroy Realty Corporation also posted the supplemental information on its website located at www.kilroyrealty.com. The text of the supplemental information and the related press release are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Exhibits 99.1 and 99.2 are being furnished pursuant to Item 2.02 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act regardless of any general incorporation language in such filing.

Item 7.01    Regulation FD Disclosure.

As discussed in Item 2.02 above, Kilroy Realty Corporation issued a press release announcing its earnings for the quarter ended March 31, 2019 and distributed certain supplemental information. On May 6, 2019, Kilroy Realty Corporation also posted the supplemental information on its website located at www.kilroyrealty.com.

The information being furnished pursuant to Item 7.01 shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act regardless of any general incorporation language in such filing.

Item 9.01    Financial Statements and Exhibits.

(a)
 
Financial statements of businesses acquired: None.

 
 
 
(b)
 
Pro forma financial information: None.

 
 
 
(c)
 
Shell company transactions: None.

 
 
 
(d)
 
Exhibits:


The following exhibits are furnished with this Current Report on Form 8-K:
Exhibit No.
 
Description
99.1**
 
 
 
 
99.2**
 
_______________
**    Furnished herewith.






SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



 
 
 
Kilroy Realty Corporation
 
 
Date: May 6, 2019
 
 
 
 
 
 
 
 
 
 
 
By:
 
/s/ Merryl E. Werber
 
 
 
 
 
 
Merryl E. Werber
Senior Vice President,
Chief Accounting Officer and Controller
 
 
 
 
 
 
 
 





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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

397826858_q119supplementalcoverpage.jpg


Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Table of Contents
 
Page
Corporate Data and Financial Highlights
 
1
2
3
4
5
6
7
8-9
10
Portfolio Data
 
11
12-16
17
18
19-21
22
23
Development
 
24
25
Debt and Capitalization Data
 
26
27-28
29-31
32-35
This Supplemental Financial Report 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. These statements include, among other things, information concerning lease expirations, debt maturities, potential investments, development and redevelopment activity, projected construction costs, dispositions and other forward-looking financial data. In some instances, forward-looking statements can be identified by the use of forward-looking terminology such as “expect,” “future,” “will,” “would,” “pursue,” or “project” and variations of such words and similar expressions that do not relate to historical matters. Forward-looking statements are based on Kilroy Realty Corporation’s 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 Kilroy Realty Corporation’s control. Accordingly, actual performance, results and events may vary materially from those indicated or implied 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 enactment or implementations of, tax laws or other 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 Kilroy Realty Corporation’s business and financial performance, see the factors included under the caption “Risk Factors” in Kilroy Realty Corporation’s annual report on Form 10-K for the year ended December 31, 2018, and its other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. Kilroy Realty Corporation assumes no obligation to update any forward-looking statement made in this Supplemental Financial Report 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
First Quarter 2019 Supplemental Financial Report


Company Background

Kilroy Realty Corporation (NYSE: 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. At March 31, 2019, the Company’s stabilized portfolio totaled approximately 13.2 million square feet of office space that was 92.5% occupied, 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. 
Board of Directors
 
Executive Management Team
 
Investor Relations
John Kilroy
Chairman
 
John Kilroy
President and CEO
 
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
 
Jeffrey C. Hawken
Executive VP and COO
 
Jolie Hunt
 
 
Tracy Murphy
Executive VP, Life Science
 
Scott S. Ingraham
 
 
Robert Paratte
Executive VP, Leasing and Business Development
 
Gary R. Stevenson
 
 
Tyler H. Rose
Executive VP and CFO
 
Peter B. Stoneberg
 
 
Steve Rosetta
Executive VP and CIO
 
 
 
 
Heidi R. Roth
Executive VP and Chief Administrative Officer
 
 
 
 
Justin W. Smart
Executive VP, Development and Construction Services
 
Equity Research Coverage
 
 
 
 
 
Bank of America Merrill Lynch
 
 
Green Street Advisors
 
James Feldman
(646) 855-5808
 
Daniel Ismail
(949) 640-8780
BMO Capital Markets Corp.
 
 
J.P. Morgan
 
John P. Kim
(212) 885-4115
 
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
 
Michael Bilerman
(212) 816-1383
 
Mike Carroll
(440) 715-2649
D. A. Davidson
 
 
Robert W. Baird & Co.
 
Barry Oxford
(212) 240-9871
 
David B. Rodgers
(216) 737-7341
Deutsche Bank Securities, Inc.
 
 
Scotiabank
 
Derek Johnston
(210) 250-5683
 
Nicholas Yulico
(212) 225-6904
Evercore ISI
 
 
Stifel, Nicolaus & Company
 
Steve Sakwa
(212) 446-9462
 
John W. Guinee III
(443) 224-1307
Goldman Sachs & Co.
 
 
Wells Fargo
 
Andrew Rosivach
(212) 902-2796
 
Blaine Heck
(443) 263-6529
 
Kilroy Realty Corporation is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Kilroy Realty Corporation’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Kilroy Realty Corporation or its management. Kilroy Realty Corporation does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.

1

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Executive Summary
 
 
 
Quarterly Financial Highlights
 
Quarterly Operating Highlights
 
 
 
• Net income available to common stockholders per share of $0.36
 
• Stabilized portfolio was 92.5% occupied and 96.2% leased at quarter-end
 
 
 
• FFO per share of $0.95
 
• 381,235 square feet of leases commenced in the stabilized portfolio
- FFO for the first quarter 2019 included a positive $0.03 per share impact related
 
 
     to the improved credit quality of a tenant for which the Company recorded a bad
 
• 203,370 square feet of leases executed in the stabilized portfolio
     debt reserve in 2018
 
 
- The adoption of the new lease accounting standard requires expensing of
 
- GAAP rents increased approximately 50.1% from prior levels
         internal leasing costs and third-party legal fees which had the impact of lowering
 
 
         first quarter FFO by $0.02 per share when compared to what the results would
 
- Cash rents increased approximately 34.1% from prior levels
         have been under the prior standard
 
 
 
 
 
• Revenues of $201.2 million
 
 
 
 
 
• Same Store GAAP NOI increased 3.2% compared to the prior year
 
 
 
 
 
• Same Store Cash NOI decreased 4.2% compared to the prior year
 
 
 
 
 
 
 
 
 
 
 
Capital Markets Highlights
 
Strategic Highlights
 
 
 
• In February, repaid at par a mortgage note for $74.3 million due June 2019
 
• In March, commenced construction on Phase I of Kilroy Oyster Point in South San


 
   Francisco and 9455 Towne Centre Drive in the University Towne Center submarket
• In March and April, executed 12-month forward equity sale agreements under the
 
   of San Diego
   ATM program for 1,201,204 shares at a weighted average sales price of $75.92

 
- Phase I of Kilroy Oyster Point encompasses approximately 630,000 square feet
 
 
         of office and lab space and represents a total estimated investment of $600.0
• As of the date of this report, the Company had not drawn down any portion of the
 
         million
   shares sold under the forward equity agreements, including the transaction executed

 
- 9455 Towne Centre Drive encompasses approximately 160,000 square feet of
   in August 2018
 
         office and lab space and represents a total estimated investment of $125.0 million
 
 
 
• As of the date of this report, $285.0 million was outstanding on our unsecured
 
• In March, transferred the $95.0 million retail component of One Paseo,
revolving credit facility
 
   encompassing 96,000 square feet in the Del Mar submarket of San Diego, from
 
 
   under construction to the tenant improvement phase. The retail component is
 
 
   currently 92% leased
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
________________________
Note: Definitions for commonly used terms in this Supplemental Financial Report are on pages 32-33 “Definitions Included in Supplemental.”

2

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Financial Highlights
(unaudited, $ in thousands, except per share amounts)
 
 
Three Months Ended
 
 
 
3/31/2019 (1)
 
12/31/2018 (2)
 
9/30/2018
 
6/30/2018 (2)
 
3/31/2018
 
INCOME ITEMS:
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
201,202

 
$
190,842

 
$
186,562

 
$
187,072

 
$
182,822

 
 
Lease Termination Fees, net
1,888

 
1,293

 
431

 
1,093

 
60

 
 
Net Operating Income (3)
142,442

 
137,636

 
131,020

 
129,465

 
132,709

 
 
Capitalized Interest and Debt Costs
19,437

 
19,519

 
19,156

 
15,811

 
13,582

 
 
Net Income Available to Common Stockholders
36,903

 
160,220

 
34,400

 
27,549

 
36,246

 
 
EBITDA, as adjusted (3) (4)
119,172

 
113,883

 
112,085

 
108,473

 
117,184

 
 
Funds From Operations (4) (5) (6) (7)
99,812

 
81,330

 
94,247

 
88,629

 
96,285

 
 
Net Income Available to Common Stockholders per common share – diluted (6)
$
0.36

 
$
1.58

 
$
0.33

 
$
0.27

 
$
0.36

 
 
Funds From Operations per common share – diluted (4) (6) (7)
$
0.95

 
$
0.78

 
$
0.90

 
$
0.86

 
$
0.94

 
LIQUIDITY ITEMS:
 
 
 
 
 
 
 
 
 
 
 
Funds Available for Distribution (5) (6) (8)
$
65,934

 
$
51,792

 
$
68,758

 
$
51,953

 
$
75,537

 
 
Dividends per common share (6)
$
0.455

 
$
0.455

 
$
0.455

 
$
0.455

 
$
0.425

 
RATIOS:
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income Margins
70.8
%
 
72.1
%
 
70.2
%
 
69.2
%
 
72.6
%
 
 
Fixed Charge Coverage Ratio
4.0x

 
3.7x

 
3.8x

 
3.9x

 
4.5x

 
 
FFO Payout Ratio (4) (7)
46.9
%
 
57.5
%
 
49.6
%
 
52.7
%
 
44.5
%
 
 
FAD Payout Ratio (8)
71.1
%
 
90.3
%
 
68.0
%
 
89.9
%
 
56.8
%
 
ASSETS:
 
 
 
 
 
 
 
 
 
 
 
Real Estate Held for Investment before Depreciation
$
8,616,167

 
$
8,426,632

 
$
8,329,580

 
$
8,138,413

 
$
7,645,666

 
 
Total Assets
7,883,987

 
7,765,707

 
7,562,236

 
7,384,784

 
6,965,932

 
CAPITALIZATION: (9)
 
 
 
 
 
 
 
 
 
 
 
Total Debt
$
3,020,882

 
$
2,955,811

 
$
2,891,725

 
$
2,807,627

 
$
2,563,517

 
 
Total Common Equity and Noncontrolling Interests in the Operating Partnership
7,823,144

 
6,462,321

 
7,367,745

 
7,762,978

 
7,160,602

 
 
Total Market Capitalization
10,844,026

 
9,418,132

 
10,259,470

 
10,570,605

 
9,724,119

 
 
Total Debt / Total Market Capitalization
27.9
%
 
31.4
%
 
28.2
%
 
26.6
%
 
26.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
______________________________________________________
Note: Definitions for commonly used terms in this Supplemental Financial Report are on pages 32-33 “Definitions Included in Supplemental.”
(1)
The Company adopted ASC 842 “Leases” effective January 1, 2019. Please refer to page 10 for a description of the impact of the adoption on our consolidated statements of operations.
(2)
Net Income Available to Common Stockholders includes $142.9 million of gains on sales of depreciable operating properties, a $11.8 million gain on sale of land and a $12.6 million loss on early extinguishment of debt for the three months ended December 31, 2018 and $5.6 million of provision for bad debts for the three months ended June 30, 2018.
(3)
Please refer to page 10 for the calculation of Net Operating Income and pages 34-35 for reconciliations of GAAP Net Income Available to Common Stockholders to Net Operating Income and EBITDA, as adjusted.
(4)
EBITDA, as adjusted, and Funds From Operations include a $11.8 million gain on sale of land and $5.6 million of provision for bad debts for the three months ended December 31, 2018 and June 30, 2018, respectively. The Company’s calculation of EBITDA, as adjusted, is the same as EBITDAre, as defined by NAREIT, as the Company does not have any unconsolidated joint ventures.
(5)
Please refer to page 8 for reconciliations of GAAP Net Income Available to Common Stockholders to Funds From Operations available to common stockholders and unitholders and Funds Available for Distribution to common stockholders and unitholders and page 9 for a reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution to common stockholders and unitholders.
(6)
Reported amounts are attributable to common stockholders, common unitholders and restricted stock unit holders.
(7)
Funds From Operations for the three months ended December 31, 2018 includes a $12.6 million loss on early extinguishment of debt.
(8)
Funds Available for Distribution for the three months ended December 31, 2018 includes a $11.8 million cash loss on early extinguishment of debt.
(9)
Please refer to page 26 for additional information regarding our capital structure.

3

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Net Income Available to Common Stockholders / FFO Guidance and Outlook
(unaudited, $ and shares/units in thousands, except per share amounts)

The Company is providing an updated guidance range of NAREIT-defined FFO per diluted share for its fiscal year 2019 of $3.64 to $3.78 per share with a midpoint of $3.71 per share.
 
 
 
Full Year 2019 Range
 
 
 
 
Low End
 
High End
 
 
Net income available to common stockholders per share - diluted
 
$
1.49

 
$
1.63

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - diluted (1)
 
105,700

 
105,700

 
 
 
 
 
 
 
 
 
Net income available to common stockholders
 
$
157,000

 
$
172,000

 
 
Adjustments:
 
 
 
 
 
 
Net income attributable to noncontrolling common units of the Operating Partnership
 
3,200

 
3,600

 
 
Net income attributable to noncontrolling interests in consolidated property partnerships
 
17,000

 
20,000

 
 
Depreciation and amortization of real estate assets
 
241,000

 
241,000

 
 
Gains on sales of depreciable real estate
 

 

 
 
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships
 
(26,500
)
 
(29,500
)
 
 
Funds From Operations (2)
 
$
391,700

 
$
407,100

 
 
 
 
 
 
 
 
 
Weighted average common shares and units outstanding - diluted (3)
 
107,700

 
107,700

 
 
 
 
 
 
 
 
 
FFO per common share/unit - diluted (3)
 
$
3.64

 
$
3.78

 
 
 
 
 
 
 
 

Key 2019 assumptions include:
Dispositions of approximately $150.0 million to $350.0 million
Flat same store cash net operating income (2) 
Year-end occupancy of 94.0% to 95.0%
Total remaining development spending of approximately $400.0 million to $500.0 million
________________________
(1)
Calculated based on estimated weighted average shares outstanding including non-participating share-based awards.
(2)
See pages 30-31 for Management Statements on Funds From Operations and Same Store Cash Net Operating Income.
(3)
Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of stock options, contingently issuable shares, and shares issuable under forward equity sale agreements and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.

The Company’s guidance estimates for the full year 2019, and the reconciliation of net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this report, 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 report. Although these guidance estimates reflect the impact on the Company’s operating results of an assumed range of future disposition activity, these guidance estimates do not include any estimates of possible future gains or losses from possible future dispositions because 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. We caution you not to place undue reliance on our assumed range of future disposition activity because any potential future disposition transactions will ultimately depend on the market conditions and other factors, including but not limited to the Company’s capital needs, the particular assets being sold and the Company’s ability to defer some or all of the taxable gain on the sales. 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. There can be no assurance that the Company’s actual results will not differ materially from these estimates.

4

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Common Stock Data (NYSE: KRC)
 
 
 
Three Months Ended
 
 
 
3/31/2019
 
12/31/2018
 
9/30/2018
 
6/30/2018
 
3/31/2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
High Price
$
76.50

 
$
72.34

 
$
76.67

 
$
77.34

 
$
74.27

 
 
Low Price
$
61.44

 
$
59.46

 
$
69.67

 
$
68.96

 
$
63.72

 
 
Closing Price
$
75.96

 
$
62.88

 
$
71.69

 
$
75.64

 
$
70.96

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends per share – annualized
$
1.82

 
$
1.82

 
$
1.82

 
$
1.82

 
$
1.70

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closing common shares (in 000’s) (1)
100,967

 
100,747

 
100,747

 
100,560

 
98,840

 
 
Closing common partnership units (in 000’s) (1)
2,023

 
2,025

 
2,025

 
2,071

 
2,071

 
 
 
102,990

 
102,772

 
102,772

 
102,631

 
100,911

 
 
 
 
 
 
 
 
 
 
 
 
 
________________________
(1)
As of the end of the period.







5

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Consolidated Balance Sheets
(unaudited, $ in thousands)
 
 
3/31/2019
 
12/31/2018
 
9/30/2018
 
6/30/2018
 
3/31/2018
 
 
ASSETS:

 
 
 
 
 
 
 
 
 
 
Land and improvements
$
1,184,496

 
$
1,160,138

 
$
1,127,100

 
$
1,127,100

 
$
1,127,100

 
 
Buildings and improvements
5,300,313

 
5,207,984

 
5,056,050

 
5,017,999

 
4,987,617

 
 
Undeveloped land and construction in progress
2,131,358

 
2,058,510

 
2,146,430

 
1,993,314

 
1,530,949

 
 
Total real estate assets held for investment
8,616,167

 
8,426,632

 
8,329,580

 
8,138,413

 
7,645,666

 
 
Accumulated depreciation and amortization
(1,441,506
)
 
(1,391,368
)
 
(1,411,529
)
 
(1,361,811
)
 
(1,312,612
)
 
 
Total real estate assets held for investment, net
7,174,661

 
7,035,264

 
6,918,051

 
6,776,602

 
6,333,054

 
 
Cash and cash equivalents
49,693

 
51,604

 
86,517

 
50,817

 
53,069

 
 
Restricted cash
6,300

 
119,430

 

 

 

 
 
Marketable securities
24,098

 
21,779

 
23,353

 
22,519

 
21,572

 
 
Current receivables, net
28,016

 
20,176

 
17,519

 
15,144

 
17,602

 
 
Deferred rent receivables, net
280,756

 
267,007

 
261,003

 
256,558

 
251,744

 
 
Deferred leasing costs and acquisition-related intangible assets, net
187,309

 
197,574

 
183,118

 
186,649

 
181,567

 
 
Right of use ground lease assets (1)
82,794

 

 

 

 

 
 
Prepaid expenses and other assets, net
50,360

 
52,873

 
72,675

 
76,495

 
107,324

 
 
TOTAL ASSETS
$
7,883,987

 
$
7,765,707

 
$
7,562,236

 
$
7,384,784

 
$
6,965,932

 
 
LIABILITIES AND EQUITY:
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Secured debt, net
$
259,878

 
$
335,531

 
$
336,866

 
$
338,189

 
$
339,501

 
 
Unsecured debt, net
2,552,883

 
2,552,070

 
2,207,049

 
2,156,521

 
2,155,794

 
 
Unsecured line of credit
185,000

 
45,000

 
330,000

 
295,000

 
50,000

 
 
Accounts payable, accrued expenses and other liabilities
373,691

 
374,415

 
360,674

 
278,508

 
223,973

 
 
Ground lease liabilities (1)
87,247

 

 

 

 

 
 
Accrued dividends and distributions
47,676

 
47,559

 
47,411

 
47,348

 
43,512

 
 
Deferred revenue and acquisition-related intangible liabilities, net
138,973

 
149,646

 
149,059

 
146,741

 
149,563

 
 
Rents received in advance and tenant security deposits
55,457

 
60,225

 
56,258

 
58,604

 
56,117

 
 
Total liabilities
3,700,805

 
3,564,446

 
3,487,317

 
3,320,911

 
3,018,460

 
 
Equity:
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
Common stock
1,010

 
1,007

 
1,007

 
1,006

 
988

 
 
Additional paid-in capital
3,976,204

 
3,976,953

 
3,965,405

 
3,951,289

 
3,816,385

 
 
Distributions in excess of earnings
(62,690
)
 
(48,053
)
 
(161,654
)
 
(149,368
)
 
(130,514
)
 
 
Total stockholders’ equity
3,914,524

 
3,929,907

 
3,804,758

 
3,802,927

 
3,686,859

 
 
Noncontrolling Interests
 
 
 
 
 
 
 
 
 
 
 
Common units of the Operating Partnership
78,413

 
78,991

 
76,486

 
78,223

 
77,240

 
 
Noncontrolling interests in consolidated property partnerships
190,245

 
192,363

 
193,675

 
182,723

 
183,373

 
 
Total noncontrolling interests
268,658

 
271,354

 
270,161

 
260,946

 
260,613

 
 
Total equity
4,183,182

 
4,201,261

 
4,074,919

 
4,063,873

 
3,947,472

 
 
TOTAL LIABILITIES AND EQUITY
$
7,883,987

 
$
7,765,707

 
$
7,562,236

 
$
7,384,784

 
$
6,965,932

 
 
 
 
 
 
 
 
 
 
 
 
 
________________________
(1)
Effective January 1, 2019, the Company adopted ASC 842 “Leases,” which requires right of use assets and liabilities for leases in which the Company is the lessee to be presented on the Company’s consolidated balance sheets.

6

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Consolidated Statements of Operations
(unaudited, $ and shares in thousands, except per share amounts)
 
 
 
Three Months Ended, March 31
 
 
 
 
2019
 
2018
 
 
REVENUES
 
 
 
 
 
 
Rental income (1)
 
$
199,382

 
$
162,871

 
 
Tenant reimbursements (1)
 

 
19,150

 
 
Other property income (1)
 
1,820

 
801

 
 
Total revenues
 
201,202

 
182,822

 
 
EXPENSES
 
 
 
 
 
 
Property expenses (1)
 
38,149

 
31,671

 
 
Real estate taxes (1)
 
18,639

 
17,146

 
 
Provision for bad debts (1)
 

 
(265
)
 
 
Ground leases (1)
 
1,972

 
1,561

 
 
General and administrative expenses
 
23,341

 
15,559

 
 
Leasing costs (1)
 
1,757

 

 
 
Depreciation and amortization
 
66,135

 
62,715

 
 
Total expenses
 
149,993

 
128,387

 
 
OTHER (EXPENSES) INCOME
 
 
 
 
 
 
Interest income and other net investment gain
 
1,828

 
34

 
 
Interest expense
 
(11,243
)
 
(13,498
)
 
 
Total other (expenses) income
 
(9,415
)
 
(13,464
)
 
 
NET INCOME
 
41,794

 
40,971

 
 
Net income attributable to noncontrolling common units of the Operating Partnership
 
(700
)
 
(751
)
 
 
Net income attributable to noncontrolling interests in consolidated property partnerships
 
(4,191
)
 
(3,974
)
 
 
Total income attributable to noncontrolling interests
 
(4,891
)
 
(4,725
)
 
 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
 
$
36,903

 
$
36,246

 
 
Weighted average common shares outstanding – basic
 
100,901

 
98,744

 
 
Weighted average common shares outstanding – diluted
 
101,443

 
99,214

 
 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE
 
 
 
 
 
 
Net income available to common stockholders per share – basic
 
$
0.36

 
$
0.36

 
 
Net income available to common stockholders per share – diluted
 
$
0.36

 
$
0.36

 
 
 
 
 
 
 
 
________________________
(1)
Effective January 1, 2019, the Company adopted ASC 842 “Leases.” Please refer to page 10 for a description of the changes made to our 2019 consolidated statement of operations upon adoption of ASC 842 “Leases.” In accordance with the adoption of the new standard under the modified retrospective method, previously reported periods are not restated for the impact of the standard.

7

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Funds From Operations and Funds Available for Distribution
(unaudited, $ in thousands, except per share amounts)
 
 
 
Three Months Ended, March 31
 
 
 
 
2019
 
2018
 
 
FUNDS FROM OPERATIONS: (1)
 
 
 
 
 
 
Net income available to common stockholders
 
$
36,903

 
$
36,246

 
 
Adjustments:
 
 
 
 
 
 
Net income attributable to noncontrolling common units of the Operating Partnership
 
700

 
751

 
 
Net income attributable to noncontrolling interests in consolidated property partnerships
 
4,191

 
3,974

 
 
Depreciation and amortization of real estate assets
 
64,971

 
61,677

 
 
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships
 
(6,953
)
 
(6,363
)
 
 
Funds From Operations (1)(2)
 
$
99,812

 
$
96,285

 
 
Weighted average common shares/units outstanding – basic (3)
 
104,062

 
102,030

 
 
Weighted average common shares/units outstanding – diluted (4)
 
104,603

 
102,499

 
 
FFO per common share/unit – basic (1)
 
$
0.96

 
$
0.94

 
 
FFO per common share/unit – diluted (1)
 
$
0.95

 
$
0.94

 
 
FUNDS AVAILABLE FOR DISTRIBUTION: (1)
 
 
 
 
 
 
Funds From Operations (1)(2)
 
$
99,812

 
$
96,285

 
 
Adjustments:
 
 
 
 
 
 
Recurring tenant improvements, leasing commissions and capital expenditures
 
(21,583
)
 
(13,994
)
 
 
Amortization of deferred revenue related to tenant-funded tenant improvements (2)(5)
 
(3,817
)
 
(4,281
)
 
 
Net effect of straight-line rents
 
(16,511
)
 
(5,353
)
 
 
Amortization of net below market rents (6)
 
(2,094
)
 
(2,543
)
 
 
Amortization of deferred financing costs and net debt discount/premium
 
135

 
315

 
 
Non-cash executive compensation expense (7)
 
7,584

 
3,598

 
 
Other lease related adjustments, net and leasing costs (8)
 
35

 
1,287

 
 
Adjustments attributable to noncontrolling interests in consolidated property partnerships
 
2,373

 
223

 
 
Funds Available for Distribution (1)
 
$
65,934

 
$
75,537

 
 
 
 
 
 
 
 
________________________
(1)
See page 31 for Management Statements on Funds From Operations and Funds Available for Distribution. Reported per common share/unit amounts are attributable to common stockholders, common unitholders and restricted stock unit holders.
(2)
FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of $3.8 million and $4.3 million for the three months ended March 31, 2019 and 2018, respectively. These amounts are adjusted out of FFO in our calculation of FAD.
(3)
Calculated based on weighted average shares outstanding including participating share-based awards and assuming the exchange of all common limited partnership units outstanding.
(4)
Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of stock options, contingently issuable shares, and shares issuable under forward equity sale agreements and assuming the exchange of all common limited partnership units outstanding.
(5)
Represents revenue recognized during the period as a result of the amortization of deferred revenue recorded for tenant-funded tenant improvements.
(6)
Represents the non-cash adjustment related to the acquisition of buildings with above and/or below market rents.
(7)
Includes non-cash amortization of share-based compensation and accrued potential future executive retirement benefits.
(8)
Includes other cash and non-cash adjustments attributable to lease-related matters including GAAP revenue recognition timing differences and leasing costs.


8

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution
(unaudited, $ in thousands)
 
 
 
Three Months Ended March 31,
 
 
 
 
2019
 
2018
 
 
GAAP Net Cash Provided by Operating Activities 
 
$
99,790

 
$
94,109

 
 
Adjustments:
 
 
 
 
 
 
Recurring tenant improvements, leasing commissions and capital expenditures
 
(21,583
)
 
(13,994
)
 
 
Depreciation of non-real estate furniture, fixtures and equipment
 
(1,164
)
 
(1,038
)
 
 
Net changes in operating assets and liabilities (1)
 
(5,962
)
 
6,377

 
 
Noncontrolling interests in consolidated property partnerships share of FFO and FAD
 
(4,580
)
 
(6,140
)
 
 
Cash adjustments related to investing and financing activities
 
(567
)
 
(3,777
)
 
 
 
 
 
 
 
 
 
Funds Available for Distribution(2)
 
$
65,934

 
$
75,537

 
 
 
 
 
 
 
 
_______________________
(1)
Primarily includes changes in the following assets and liabilities: marketable securities; current receivables; prepaid expenses and other assets; accounts payable, accrued expenses and other liabilities; and rents received in advance and tenant security deposits. 
(2)
Please refer to page 31 for a Management Statement on Funds Available for Distribution.


9

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Net Operating Income (1) 
(unaudited, $ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended, March 31
 
 
 
 
2019 (2)
 
2018 As Reported
 
2018 As Adjusted (3)
 
% Change
2019 vs. 2018 As Adjusted
 
 
Operating Revenues:
 
 
 
 
 
 
 
 
 
 
Rental income
 
$
171,882

 
$
162,871

 
$
161,945

 
6.1
 %
 
 
Tenant reimbursements
 
27,500

 
19,150

 
22,675

 
21.3
 %
 
 
Other property income
 
1,820

 
801

 
1,992

 
(8.6
)%
 
 
Total operating revenues
 
201,202

 
182,822

 
186,612

 
7.8
 %
 
 
Operating Expenses:
 
 
 
 
 
 
 
 
 
 
Property expenses
 
38,149

 
31,671

 
35,196

 
8.4
 %
 
 
Real estate taxes
 
18,639

 
17,146

 
16,684

 
11.7
 %
 
 
Provision for bad debts
 

 
(265
)
 

 
 %
 
 
Ground leases
 
1,972

 
1,561

 
2,023

 
(2.5
)%
 
 
Total operating expenses
 
58,760

 
50,113

 
53,903

 
9.0
 %
 
 
Net Operating Income
 
$
142,442

 
$
132,709

 
$
132,709

 
7.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
________________________
(1)
Please refer to page 29 for Management Statements on Net Operating Income and page 34 for a reconciliation of GAAP Net Income Available to Common Stockholders to Net Operating Income.
(2)
Effective January 1, 2019, the Company adopted ASC 842 “Leases,” which required the following changes for all periods beginning and subsequent to January 1, 2019. In accordance with the adoption of the new standard under the modified retrospective method, previously reported periods are not restated for the impact of the standard.
- All lease related revenue required to be reported as a single component within rental income. For the three months ended March 31, 2019, rental income includes $27.5 million of tenant reimbursements and $3.3 million of lease termination fees. For this analysis, tenant reimbursements have been broken out from rental income for comparison purposes.
- Rental income to be presented net of provision for bad debts. For the three months ended March 31, 2019, rental income includes a recovery of provision for bad debts of $3.5 million.
- All property expenses paid directly by the Company and reimbursed by the tenant to be presented on a gross basis. For the three months ended March 31, 2019, rental income and property expenses both include $3.0 million of additional tenant reimbursements and the related property expenses, which were previously shown net in property expenses in prior periods. This change has no impact to net income, Net Operating Income or Funds From Operations.
- Non-tenant parking income to be presented in other property income instead of rental income since recognized under ASC 606 “Revenue from Contracts with Customers” and outside the scope of ASC 842 “Leases.”
- Real estate taxes for properties where the Company is a lessee under ground leases to be presented in ground leases instead of real estate taxes. For the three months ended March 31, 2019, ground leases includes $0.5 million of property taxes for properties where the Company is a lessee.
(3)
The components of Net Operating Income for the three months ended March 31, 2018 have been presented as if we adopted ASC 842 “Leases” effective January 1, 2018 for comparison purposes. For this analysis, tenant reimbursements have been broken out from rental income for comparison purposes. For the three months ended March 31, 2018 as adjusted, rental income includes $0.4 million of lease termination fees.


10

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Same Store Analysis (1) 
(unaudited, $ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended, March 31
 
 
 
 
2019
 
2018
 
2018 As Adjusted (2)
 
% Change
2019 vs. 2018 As Adjusted
 
 
Total Same Store Portfolio
 
 
 
 
 
 
 
 
 
 
Office Portfolio
 
 
 
 
 
 
 
 
 
 
Number of properties
 
90

 
90

 
90

 
 
 
 
Square Feet
 
12,980,793

 
12,980,793

 
12,980,793

 
 
 
 
Percent of Stabilized Portfolio
 
98.1
%
 
93.6
%
 
93.6
%
 
 
 
 
Average Occupancy
 
93.2
%
 
94.9
%
 
94.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues: (3) (4)
 
 
 
 
 
 
 
 
 
 
Rental income  (5)
 
$
160,300

 
$
155,886

 
$
154,949

 
3.5
 %
 
 
Tenant reimbursements
 
23,959

 
17,578

 
21,006

 
14.1
 %
 
 
Other property income
 
1,752

 
768

 
1,990

 
(12.0
)%
 
 
Total operating revenues
 
186,011

 
174,232

 
177,945

 
4.5
 %
 
 
Operating Expenses: (4)
 
 
 
 
 
 
 
 
 
 
Property expenses
 
36,511

 
30,164

 
33,592

 
8.7
 %
 
 
Real estate taxes
 
16,630

 
15,989

 
15,528

 
7.1
 %
 
 
Provision for bad debts
 

 
(285
)
 

 
 %
 
 
Ground leases
 
1,972

 
1,561

 
2,022

 
(2.5
)%
 
 
Total operating expenses
 
55,113

 
47,429

 
51,142

 
7.8
 %
 
 
GAAP Net Operating Income
 
$
130,898

 
$
126,803

 
$
126,803

 
3.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same Store Analysis (Cash Basis) (6)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended, March 31
 
 
 
 
2019
 
2018
 
2018 As Adjusted (2)
 
% Change
2019 vs. 2018 As Adjusted
 
 
Total operating revenues
 
$
166,305

 
$
163,723

 
$
167,151

 
(0.5
)%
 
 
Total operating expenses
 
55,131

 
47,713

 
51,141

 
7.8
 %
 
 
Cash Net Operating Income
 
$
111,174

 
$
116,010

 
$
116,010

 
(4.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
________________________
(1)
Same Store is defined as all properties owned and included in our stabilized portfolio as of January 1, 2018 and still owned and included in the stabilized portfolio as of March 31, 2019. Same Store includes 100% of consolidated property partnerships as well as the residential tower at Columbia Square.
(2)
The components of Net Operating Income for the three months ended March 31, 2018 have been presented as if we adopted ASC 842 “Leases” effective January 1, 2018 for comparison purposes.
(3)
For this analysis, tenant reimbursements have been broken out from rental income.
(4)
Please refer to page 10 for our Net Operating Income and a description of the changes made and their impact on our consolidated statements of operations effective January 1, 2019 upon adoption of ASC 842 “Leases.” For our same store portfolio, the gross-up presentation of property expenses paid directly by the Company and reimbursed by the tenant increased tenant reimbursements and property expenses by $2.8 million for the three months ended March 31, 2019. The impact of all other changes from the adoption of ASC 842 was the same for our consolidated portfolio and our same store portfolio.
(5)
For the three months ended March 31, 2019, rental income includes lease termination fees of $1.5 million. For the three months ended March 31, 2018 as adjusted, rental income includes lease termination fees of $0.4 million.
(6)
Please refer to page 34 for a reconciliation of GAAP Net Income Available to Common Stockholders to Same Store GAAP Net Operating Income and Same Store Cash Net Operating Income.

11

Kilroy Realty Corporation
First Quarter 2019 Supplemental Financial Report


Stabilized Portfolio Occupancy Overview by Region

 
 
 
 
 
Portfolio Breakdown
 
 
 
Occupied at
 
Leased at
 
 
STABILIZED OFFICE PORTFOLIO
 
Buildings
 
YTD NOI %
 
SF %
 
Total SF
 
3/31/2019
 
12/31/2018 (1)
 
3/31/2019
 
 
Greater Los Angeles
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
101 Corridor
 
1
 
0.2
%
 
0.6
%
 
84,098

 
80.5
%
 
80.5
%
 
80.5
%
 
 
El Segundo
 
5
 
5.2
%
 
8.2
%
 
1,093,050

 
98.3
%
 
99.5
%
 
98.3
%
 
 
Hollywood
 
6
 
7.2
%
 
6.1
%
 
806,557

 
99.2
%
 
99.0
%
 
99.2
%
 
 
Long Beach
 
7
 
3.2
%
 
7.2
%
 
949,942

 
93.0
%
 
92.1
%
 
96.2
%
 
 
West Hollywood
 
4
 
1.3
%
 
1.4
%
 
178,699

 
95.1
%
 
95.9
%
 
95.1
%
 
 
West Los Angeles
 
10
 
6.1
%
 
6.4
%
 
844,151

 
93.3
%
 
90.3
%
 
94.8
%
 
 
Total Greater Los Angeles
 
33
 
23.2
%
 
29.9
%
 
3,956,497

 
95.6
%
 
95.1
%
 
96.7
%
 
 
Total Orange County
 
1
 
1.3
%
 
2.1
%
 
271,556

 
90.3
%
 
89.6
%
 
93.7
%
 
 
San Diego County
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Del Mar
 
14
 
8.7
%
 
10.2
%
 
1,349,747

 
92.7
%
 
93.1
%
 
93.1
%
 
 
I-15 Corridor
 
5
 
1.4
%
 
4.1
%
 
540,892

 
81.8
%
 
77.5
%
 
82.9
%
 
 
Point Loma
 
1
 
0.5
%
 
0.8
%
 
107,456

 
100.0
%
 
100.0
%
 
100.0
%
 
 
University Towne Center
 
1

 
0.2
%
 
0.4
%
 
47,846

 
91.4
%
 
91.4
%
 
91.4
%
 
 
Total San Diego County
 
21
 
10.8
%
 
15.5
%
 
2,045,941

 
90.2
%
 
89.3
%
 
90.7
%
 
 
San Francisco Bay Area
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Menlo Park
 
7
 
3.3
%
 
2.9
%
 
378,358

 
99.1
%
 
99.1
%
 
100.0
%
 
 
Mountain View
 
4
 
5.1
%
 
4.0
%
 
542,235

 
100.0
%
 
100.0
%
 
100.0
%
 
 
Palo Alto
 
2
 
1.8
%
 
1.3
%
 
165,585

 
100.0
%
 
100.0
%
 
100.0
%
 
 
Redwood City
 
2
 
4.2
%
 
2.6
%
 
347,269

 
99.1
%
 
99.1
%
 
100.0
%
 
 
San Francisco
 
9
 
30.1
%
 
22.0
%
 
2,918,152

 
88.0
%
 
94.9
%
 
97.0
%
 
 
South San Francisco
 
3
 
1.2
%
 
1.1
%
 
145,530

 
78.5
%
 
78.5
%
 
78.5
%
 
 
Sunnyvale
 
4
 
5.9
%
 
5.0
%
 
663,460

 
100.0
%
 
100.0
%
 
100.0
%
 
 
Total San Francisco Bay Area
 
31
 
51.6
%
 
38.9
%
 
5,160,589

 
92.5
%
 
96.4
%
 
97.7
%
 
 
Greater Seattle
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bellevue
 
2
 
6.1
%
 
6.9
%
 
917,027

 
93.8
%
 
89.5
%
 
97.5
%
 
 
Lake Union
 
6
 
7.0
%
 
6.7
%
 
884,763

 
83.7
%
 
97.8
%
 
97.8
%
 
 
Total Greater Seattle
 
8
 
13.1
%
 
13.6
%
 
1,801,790

 
88.8
%
 
93.6
%
 
97.7
%
 
 
TOTAL STABILIZED OFFICE PORTFOLIO
 
94
 
100.0
%
 
100.0
%
 
13,236,373

 
92.5
%
 
94.4
%
 
96.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total No. of Units
 
Average Residential Occupancy
 
 
 
 
RESIDENTIAL PROPERTY
 
 
 
Submarket
 
Buildings
 
 
Quarter-to-Date
 
 
 
 
Greater Los Angeles