Q3 2021 Supplemental Financial Report
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Page | |
Corporate Data and Financial Highlights | |
Company Background |
1 |
Executive Summary |
2 |
Financial Highlights |
3 |
Market Capitalization and Common Stock Data |
4 |
Net Income Available to Common Stockholders / FFO Guidance and Outlook |
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 |
12 |
Stabilized Portfolio Occupancy Overview by Region |
13-17 |
Information on Leases Commenced & Leases Executed |
18 |
Stabilized Portfolio Capital Expenditures |
19 |
Stabilized Portfolio Lease Expirations |
20-21 |
Top Fifteen Tenants |
22 |
2021 Operating Property Acquisitions |
23 |
2021 Operating Property Dispositions |
24 |
Consolidated Ventures (Noncontrolling Property Partnerships) |
25 |
Development | |
Stabilized Office/Life Science Development Projects and Completed Residential Development Projects |
27 |
In-Process Development |
28 |
Committed Redevelopment |
29 |
Future Development Pipeline |
30 |
Debt and Capitalization Data | |
Capital Structure |
32 |
Debt Analysis |
33 |
Non-GAAP Supplemental Measures |
35-37 |
Definitions & Reconciliations |
39-42 |
Q3 2021 Supplemental Financial Report
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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 | ||
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 | ||
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 |
Q3 2021 Supplemental Financial Report
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Quarterly Financial Highlights | Quarterly Operating Highlights | |
• Net income available to common stockholders per share of $0.40
|
• Stabilized portfolio was 91.5% occupied and 93.9% leased at quarter-end
| |
• FFO per share of $0.98
| • 438,037 square feet of leases commenced in the stabilized portfolio | |
• Revenues of $232.3 million
| • 459,498 square feet of leases executed in the stabilized portfolio | |
• Same Store NOI increased 3.2% compared to the prior year
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◦GAAP rents increased approximately 24.4% from prior levels
| |
• Same Store Cash NOI increased 16.6% compared to the prior year; adjusted for
|
◦Cash rents increased approximately 8.3% from prior levels
| |
lease termination fees received, of which $17.3 million was received in 2021, | ||
increased 3.7% | ||
Capital Markets Highlights | Strategic Highlights | |
• In September, increased the regular quarterly cash dividend to common |
• In August, added One Paseo - Office Building 2, comprised of 196,444 square feet
| |
stockholders by 4% to $0.52 per share; an annualized rate of $2.08 per share | at our One Paseo mixed-use project in the Del Mar submarket of San Diego to the | |
stabilized portfolio. The One Paseo office project is now 100% leased and 87% | ||
• In October, completed a public offering of $450.0 million of 12-year senior | occupied | |
unsecured green bonds at 2.650% due November 2033 | ||
• In August, commenced construction on 9514 Towne Centre Drive, a 71,000 square
| ||
• In October, completed the early redemption of all $300.0 million of 3.800% |
foot office property located in the University Towne Center submarket of San Diego.
| |
unsecured senior notes due January 2023 for a price of approximately $313.4 | The building is 100% leased | |
million, including make whole redemption fees and other related costs | ||
• In September, completed the acquisition of 2001 West 8th Avenue, a 539,226
| ||
• As of the date of this report, approximately $1.5 billion of total liquidity comprised |
square foot office project in the Denny Regrade submarket of Seattle for $490.0
| |
of $390.0 million of cash and cash equivalents and full availability under the $1.1 | million. The building is 100% leased; Amazon occupies approximately 70% of the | |
billion unsecured revolving credit facility | project | |
• In September, added the first of three life science buildings located at Kilroy Oyster
| ||
Point - Phase 1 in South San Francisco to the stabilized portfolio. The 234,892 | ||
square foot building is 100% leased to Cytokinetics and revenue recognition | ||
commenced on October 1, 2021 | ||
• In September, in connection with the execution of three new life science leases
| ||
totaling 330,000 square feet, committed three buildings in San Diego to our | ||
redevelopment program: 12340 El Camino Real and 12400 High Bluff Drive in the | ||
Del Mar submarket and 4690 Executive Drive in the University Towne Center | ||
submarket, which will be converted in phases from office to life science use | ||
Q3 2021 Supplemental Financial Report
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Three Months Ended | ||||||||||
9/30/2020 (1)
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12/31/2020 (1)
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3/31/2021 (1)
| 6/30/2021 | 9/30/2021 | ||||||
INCOME ITEMS: | ||||||||||
Lease Termination Fees, net | 424 | 732 | 53 | 1,411 | 1,710 | |||||
Capitalized Interest and Debt Costs | 19,339 | 18,280 | 16,908 | 18,073 | 23,447 | |||||
Net Income Available to Common Stockholders | 49,028 | 78,642 | 497,631 | 35,839 | 47,028 | |||||
Net Income Available to Common Stockholders per common share - diluted (2)
| $ | 0.42 | $ | 0.67 | $ | 4.26 | $ | 0.30 | $ | 0.40 |
Funds From Operations per common share - diluted (3)
| $ | 0.99 | $ | 0.95 | $ | 0.98 | $ | 0.88 | $ | 0.98 |
RATIOS: | ||||||||||
Net Operating Income Margins | 71.4 | % | 71.4 | % | 72.0 | % | 71.4 | % | 71.3 | % |
Fixed Charge Coverage Ratio | 4.0x | 3.8x | 4.0x | 3.7x | 3.8x | |||||
FFO Payout Ratio | 49.9 | % | 52.0 | % | 50.6 | % | 56.2 | % | 52.7 | % |
FAD Payout Ratio | 66.3 | % | 79.2 | % | 75.3 | % | 76.2 | % | 54.1 | % |
Q3 2021 Supplemental Financial Report
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Dividends per common share (2) (3)
| $ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.52 |
Closing common shares (4)
| 115,247 | 116,036 | 116,450 | 116,454 | 116,462 | |||||
Closing common partnership units (4)
| 1,932 | 1,151 | 1,151 | 1,151 | 1,151 | |||||
117,179 | 117,187 | 117,601 | 117,605 | 117,613 | ||||||
Q3 2021 Supplemental Financial Report
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Full Year 2021 Range | ||||
Low End | High End | |||
Net income available to common stockholders per share - diluted | $ | 5.30 | $ | 5.36 |
Weighted average common shares outstanding - diluted (1)
| 117,650 | 117,650 | ||
Net income available to common stockholders | $ | 624,000 | $ | 631,000 |
Adjustments: | ||||
Net income attributable to noncontrolling common units of the Operating Partnership | 6,200 | 6,400 | ||
Net income attributable to noncontrolling interests in consolidated property partnerships | 23,500 | 24,500 | ||
Depreciation and amortization of real estate assets | 285,000 | 285,000 | ||
Gains on sales of depreciable real estate | (458,000) | (458,000) | ||
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships | (36,000) | (37,000) | ||
Funds From Operations (2)
| $ | 444,700 | $ | 451,900 |
Weighted average common shares and units outstanding - diluted (3)
| 118,850 | 118,850 | ||
FFO per common share/unit - diluted (3)
| $ | 3.74 | $ | 3.80 |
Q3 2021 Supplemental Financial Report
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9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | ||||||
ASSETS: | ||||||||||
Land and improvements | $ | 1,702,423 | $ | 1,551,653 | $ | 1,539,542 | $ | 1,628,848 | $ | 1,612,224 |
Buildings and improvements | 7,282,341 | 6,682,208 | 6,480,857 | 6,783,092 | 6,535,637 | |||||
Undeveloped land and construction in progress | 2,237,742 | 2,318,215 | 1,771,762 | 1,778,106 | 1,938,923 | |||||
Total real estate assets held for investment | 11,222,506 | 10,552,076 | 9,792,161 | 10,190,046 | 10,086,784 | |||||
Accumulated depreciation and amortization | (1,962,730) | (1,900,740) | (1,838,338) | (1,798,646) | (1,744,325) | |||||
Total real estate assets held for investment, net | 9,259,776 | 8,651,336 | 7,953,823 | 8,391,400 | 8,342,459 | |||||
Cash and cash equivalents | 348,417 | 519,307 | 657,819 | 731,991 | 849,009 | |||||
Restricted cash | 13,042 | 450,457 | 1,028,759 | 91,139 | 16,300 | |||||
Marketable securities | 27,285 | 25,885 | 24,089 | 27,481 | 25,073 | |||||
Current receivables, net | 11,646 | 9,773 | 12,855 | 12,007 | 16,083 | |||||
Deferred rent receivables, net | 394,297 | 384,475 | 370,470 | 386,658 | 375,939 | |||||
Deferred leasing costs and acquisition-related intangible assets, net | 229,334 | 184,510 | 190,721 | 210,949 | 208,306 | |||||
Right of use ground lease assets | 127,657 | 141,529 | 95,312 | 95,523 | 95,733 | |||||
Prepaid expenses and other assets, net | 60,063 | 67,494 | 50,505 | 53,560 | 55,706 | |||||
TOTAL ASSETS | $ | 10,471,517 | $ | 10,434,766 | $ | 10,384,353 | $ | 10,000,708 | $ | 9,984,608 |
LIABILITIES AND EQUITY: | ||||||||||
Liabilities: | ||||||||||
Secured debt, net | $ | 249,690 | $ | 251,000 | $ | 252,298 | $ | 253,582 | $ | 254,854 |
Unsecured debt, net | 3,673,183 | 3,672,152 | 3,671,094 | 3,670,099 | 3,668,976 | |||||
Accounts payable, accrued expenses and other liabilities | 441,357 | 429,168 | 408,552 | 445,100 | 458,421 | |||||
Ground lease liabilities | 125,676 | 143,885 | 97,617 | 97,778 | 97,936 | |||||
Accrued dividends and distributions | 61,845 | 59,455 | 59,472 | 59,431 | 59,416 | |||||
Deferred revenue and acquisition-related intangible liabilities, net | 160,687 | 122,902 | 123,794 | 128,523 | 131,558 | |||||
Rents received in advance and tenant security deposits | 68,441 | 62,739 | 68,634 | 68,874 | 61,483 | |||||
Total liabilities | 4,780,879 | 4,741,301 | 4,681,461 | 4,723,387 | 4,732,644 | |||||
Equity: | ||||||||||
Stockholders' Equity | ||||||||||
Common stock | 1,165 | 1,165 | 1,165 | 1,160 | 1,152 | |||||
Additional paid-in capital | 5,146,049 | 5,134,320 | 5,122,584 | 5,131,916 | 5,089,926 | |||||
Retained earnings (distributions in excess of earnings) | 297,250 | 311,458 | 334,496 | (103,133) | (122,936) | |||||
Total stockholders' equity | 5,444,464 | 5,446,943 | 5,458,245 | 5,029,943 | 4,968,142 | |||||
Noncontrolling Interests | ||||||||||
Common units of the Operating Partnership | 53,788 | 53,810 | 53,930 | 49,875 | 83,226 | |||||
Noncontrolling interests in consolidated property partnerships | 192,386 | 192,712 | 190,717 | 197,503 | 200,596 | |||||
Total noncontrolling interests | 246,174 | 246,522 | 244,647 | 247,378 | 283,822 | |||||
Total equity | 5,690,638 | 5,693,465 | 5,702,892 | 5,277,321 | 5,251,964 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 10,471,517 | $ | 10,434,766 | $ | 10,384,353 | $ | 10,000,708 | $ | 9,984,608 |
Q3 2021 Supplemental Financial Report
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
REVENUES | ||||||||
Rental income (1)
| $ | 230,720 | $ | 227,122 | $ | 689,849 | $ | 664,111 |
Other property income | 1,606 | 1,192 | 4,106 | 4,954 | ||||
Total revenues | 232,326 | 228,314 | 693,955 | 669,065 | ||||
EXPENSES | ||||||||
Property expenses | 40,842 | 39,236 | 120,183 | 116,048 | ||||
Real estate taxes | 24,153 | 23,868 | 71,528 | 67,924 | ||||
Ground leases | 1,708 | 2,119 | 5,559 | 6,766 | ||||
General and administrative expenses (2)
| 22,990 | 18,572 | 69,482 | 76,179 | ||||
Leasing costs | 798 | 986 | 2,373 | 3,772 | ||||
Depreciation and amortization | 73,213 | 71,863 | 222,734 | 226,318 | ||||
Total expenses | 163,704 | 156,644 | 491,859 | 497,007 | ||||
OTHER INCOME (EXPENSES) | ||||||||
Interest income and other net investment gain | 976 | 1,869 | 3,686 | 1,579 | ||||
Interest expense | (16,105) | (19,468) | (59,829) | (49,796) | ||||
Gain on sale of depreciable operating property | - | - | 457,831 | - | ||||
Total other (expenses) income | (15,129) | (17,599) | 401,688 | (48,217) | ||||
NET INCOME | 53,493 | 54,071 | 603,784 | 123,841 | ||||
Net income attributable to noncontrolling common units of the Operating Partnership | (460) | (785) | (5,700) | (1,857) | ||||
Net income attributable to noncontrolling interests in consolidated property partnerships | (6,005) | (4,258) | (17,586) | (13,521) | ||||
Total income attributable to noncontrolling interests | (6,465) | (5,043) | (23,286) | (15,378) | ||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (1)
| $ | 47,028 | $ | 49,028 | $ | 580,498 | $ | 108,463 |
Weighted average common shares outstanding - basic | 116,457 | 115,226 | 116,418 | 112,406 | ||||
Weighted average common shares outstanding - diluted | 116,963 | 115,668 | 116,894 | 112,876 | ||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE | ||||||||
Net income available to common stockholders per share - basic | $ | 0.40 | $ | 0.42 | $ | 4.98 | $ | 0.95 |
Net income available to common stockholders per share - diluted | $ | 0.40 | $ | 0.42 | $ | 4.96 | $ | 0.95 |
Q3 2021 Supplemental Financial Report
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
FUNDS FROM OPERATIONS: (1)
| ||||||||
Net income available to common stockholders | $ | 47,028 | $ | 49,028 | $ | 580,498 | $ | 108,463 |
Adjustments: | ||||||||
Net income attributable to noncontrolling common units of the Operating Partnership | 460 | 785 | 5,700 | 1,857 | ||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 6,005 | 4,258 | 17,586 | 13,521 | ||||
Depreciation and amortization of real estate assets | 71,703 | 70,422 | 218,171 | 218,841 | ||||
Gain on sale of depreciable real estate | - | - | (457,831) | - | ||||
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships | (9,198) | (7,102) | (27,287) | (22,029) | ||||
Funds From Operations (1)(2)
| $ | 115,998 | $ | 117,391 | $ | 336,837 | $ | 320,653 |
Weighted average common shares/units outstanding - basic (3)
| 118,357 | 118,306 | 118,343 | 115,529 | ||||
Weighted average common shares/units outstanding - diluted (4)
| 118,862 | 118,747 | 118,820 | 115,999 | ||||
FFO per common share/unit - basic (1)
| $ | 0.98 | $ | 0.99 | $ | 2.85 | $ | 2.78 |
FFO per common share/unit - diluted (1)
| $ | 0.98 | $ | 0.99 | $ | 2.83 | $ | 2.76 |
FUNDS AVAILABLE FOR DISTRIBUTION: (1)
| ||||||||
Funds From Operations (1)(2)
| $ | 115,998 | $ | 117,391 | $ | 336,837 | $ | 320,653 |
Adjustments: | ||||||||
Recurring tenant improvements, leasing commissions and capital expenditures | (16,102) | (21,769) | (63,497) | (61,198) | ||||
Amortization of deferred revenue related to tenant-funded tenant improvements (2)(5)
| (4,084) | (4,403) | (12,999) | (17,424) | ||||
Net effect of straight-line rents | (9,823) | (17,423) | (40,721) | (38,400) | ||||
Amortization of net below market rents (6)
| (1,510) | (1,769) | (3,704) | (6,269) | ||||
Amortization of deferred financing costs and net debt discount/premium | 642 | 1,176 | 2,232 | 2,252 | ||||
Non-cash executive compensation expense (7)
| 9,449 | 6,364 | 27,622 | 25,418 | ||||
Lease related adjustments, leasing costs and other (8)
| 16,185 | 6,435 | 18,797 | 11,460 | ||||
Adjustments attributable to noncontrolling interests in consolidated property partnerships | 2,226 | 2,394 | 3,681 | 5,262 | ||||
Funds Available for Distribution (1)
| $ | 112,981 | $ | 88,396 | $ | 268,248 | $ | 241,754 |
Q3 2021 Supplemental Financial Report
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
GAAP Net Cash Provided by Operating Activities
| $ | 191,094 | $ | 139,958 | $ | 407,560 | $ | 363,980 |
Adjustments: | ||||||||
Recurring tenant improvements, leasing commissions and capital expenditures | (16,102) | (21,769) | (63,497) | (61,198) | ||||
Depreciation of non-real estate furniture, fixtures and equipment | (1,510) | (1,441) | (4,563) | (7,477) | ||||
Net changes in operating assets and liabilities (1)
| (47,209) | (22,798) | (36,468) | (33,949) | ||||
Noncontrolling interests in consolidated property partnerships' share of FFO and FAD
| (6,972) | (4,708) | (23,606) | (16,767) | ||||
Cash adjustments related to investing and financing activities | (6,320) | (846) | (11,178) | (2,835) | ||||
Funds Available for Distribution(2)
| $ | 112,981 | $ | 88,396 | $ | 268,248 | $ | 241,754 |
Q3 2021 Supplemental Financial Report
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||
Operating Revenues: | ||||||||||||
Rental income (2)(3)
| $ | 199,371 | $ | 195,484 | 2.0 | % | $ | 600,822 | $ | 571,103 | 5.2 | % |
Tenant reimbursements (3)
| 31,349 | 31,638 | (0.9) | % | 89,027 | 93,008 | (4.3) | % | ||||
Other property income | 1,606 | 1,192 | 34.7 | % | 4,106 | 4,954 | (17.1) | % | ||||
Total operating revenues | 232,326 | 228,314 | 1.8 | % | 693,955 | 669,065 | 3.7 | % | ||||
Operating Expenses: | ||||||||||||
Property expenses | 40,842 | 39,236 | 4.1 | % | 120,183 | 116,048 | 3.6 | % | ||||
Real estate taxes | 24,153 | 23,868 | 1.2 | % | 71,528 | 67,924 | 5.3 | % | ||||
Ground leases | 1,708 | 2,119 | (19.4) | % | 5,559 | 6,766 | (17.8) | % | ||||
Total operating expenses | 66,703 | 65,223 | 2.3 | % | 197,270 | 190,738 | 3.4 | % | ||||
Net Operating Income | $ | 165,623 | $ | 163,091 | 1.6 | % | $ | 496,685 | $ | 478,327 | 3.8 | % |
Q3 2021 Supplemental Financial Report
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||
Total Same Store Portfolio | ||||||||||||
Office Portfolio | ||||||||||||
Number of properties | 111 | 111 | 111 | 111 | ||||||||
Square Feet | 13,518,871 | 13,518,871 | 13,518,871 | 13,518,871 | ||||||||
Percent of Stabilized Portfolio | 88.9 | % | 94.3 | % | 88.9 | % | 94.3 | % | ||||
Average Occupancy | 91.3 | % | 91.9 | % | 91.2 | % | 92.6 | % | ||||
Operating Revenues: | ||||||||||||
Rental income (2)(3)
| $ | 174,496 | $ | 170,400 | 2.4 | % | $ | 519,218 | $ | 508,432 | 2.1 | % |
Tenant reimbursements (2)
| 27,224 | 25,144 | 8.3 | % | 76,280 | 74,517 | 2.4 | % | ||||
Other property income | 1,262 | 1,045 | 20.8 | % | 3,275 | 4,228 | (22.5) | % | ||||
Total operating revenues | 202,982 | 196,589 | 3.3 | % | 598,773 | 587,177 | 2.0 | % | ||||
Operating Expenses: | ||||||||||||
Property expenses | 36,095 | 34,514 | 4.6 | % | 105,956 | 104,790 | 1.1 | % | ||||
Real estate taxes | 19,446 | 18,796 | 3.5 | % | 57,195 | 55,580 | 2.9 | % | ||||
Ground leases | 1,746 | 2,119 | (17.6) | % | 5,559 | 6,766 | (17.8) | % | ||||
Total operating expenses | 57,287 | 55,429 | 3.4 | % | 168,710 | 167,136 | 0.9 | % | ||||
Net Operating Income | $ | 145,695 | $ | 141,160 | 3.2 | % | $ | 430,063 | $ | 420,041 | 2.4 | % |
Same Store Analysis (Cash Basis) (4)
| ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||
Total operating revenues (5)
| $ | 208,689 | $ | 185,284 | 12.6 | % | $ | 585,938 | $ | 559,440 | 4.7 | % |
Total operating expenses | 57,221 | 55,379 | 3.3 | % | 168,543 | 166,983 | 0.9 | % | ||||
Cash Net Operating Income | $ | 151,468 | $ | 129,905 | 16.6 | % | $ | 417,395 | $ | 392,457 | 6.4 | % |
Q3 2021 Supplemental Financial Report
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Portfolio Breakdown | Occupied at | Leased at | ||||||||||
STABILIZED OFFICE PORTFOLIO (1)
| Buildings | YTD NOI % | SF % | Total SF | 9/30/2021 | 6/30/2021 | 9/30/2021 | |||||
Greater Los Angeles | ||||||||||||
Culver City | 19 | 1.3 | % | 1.0 | % | 151,908 | 94.3 | % | 97.9 | % | 94.3 | % |
El Segundo | 5 | 4.8 | % | 7.3 | % | 1,103,595 | 94.4 | % | 94.8 | % | 94.4 | % |
Hollywood | 10 | 6.6 | % | 7.8 | % | 1,192,451 | 89.5 | % | 89.4 | % | 90.1 | % |
Long Beach | 7 | 2.3 | % | 6.2 | % | 954,836 | 79.5 | % | 79.1 | % | 80.6 | % |
West Hollywood | 4 | 1.0 | % | 1.2 | % | 189,260 | 68.8 | % | 75.5 | % | 72.9 | % |
West Los Angeles | 10 | 4.8 | % | 5.6 | % | 844,151 | 81.9 | % | 81.7 | % | 81.9 | % |
Total Greater Los Angeles | 55 | 20.8 | % | 29.1 | % | 4,436,201 | 86.4 | % | 86.7 | % | 87.0 | % |
San Diego County | ||||||||||||
Del Mar | 17 | 12.3 | % | 11.6 | % | 1,759,269 | 90.6 | % | 88.9 | % | 97.6 | % |
I-15 Corridor | 5 | 2.0 | % | 3.6 | % | 543,936 | 94.0 | % | 94.9 | % | 95.7 | % |
Point Loma | 1 | 0.7 | % | 0.7 | % | 107,456 | 100.0 | % | 100.0 | % | 100.0 | % |
University Towne Center | 2 | 1.3 | % | 1.4 | % | 208,290 | 92.4 | % | 92.4 | % | 100.0 | % |
Total San Diego County | 25 | 16.3 | % | 17.3 | % | 2,618,951 | 91.8 | % | 91.0 | % | 97.5 | % |
San Francisco Bay Area | ||||||||||||
Menlo Park | 7 | 2.3 | % | 2.5 | % | 378,358 | 74.2 | % | 74.2 | % | 74.2 | % |
Mountain View | 3 | 3.4 | % | 3.0 | % | 457,066 | 87.2 | % | 100.0 | % | 87.2 | % |
Palo Alto | 2 | 1.6 | % | 1.1 | % | 165,574 | 100.0 | % | 100.0 | % | 100.0 | % |
Redwood City | 2 | 3.7 | % | 2.3 | % | 347,269 | 100.0 | % | 100.0 | % | 100.0 | % |
San Francisco | 10 | 33.7 | % | 22.2 | % | 3,370,465 | 92.7 | % | 94.2 | % | 96.6 | % |
South San Francisco | 4 | 1.4 | % | 2.5 | % | 380,422 | 100.0 | % | 100.0 | % | 100.0 | % |
Sunnyvale | 4 | 4.9 | % | 4.4 | % | 663,460 | 100.0 | % | 100.0 | % | 100.0 | % |
Total San Francisco Bay Area | 32 | 51.0 | % | 38.0 | % | 5,762,614 | 93.0 | % | 94.7 | % | 95.3 | % |
Greater Seattle | ||||||||||||
Bellevue | 2 | 5.6 | % | 6.0 | % | 919,295 | 93.5 | % | 93.3 | % | 98.8 | % |
Denny Regrade | 1 | 0.1 | % | 3.5 | % | 539,226 | 100.0 | % | 100.0 | % | 100.0 | % |
Lake Union | 6 | 6.2 | % | 6.1 | % | 922,891 | 99.1 | % | 99.9 | % | 99.1 | % |
Total Greater Seattle | 9 | 11.9 | % | 15.6 | % | 2,381,412 | 97.2 | % | 96.5 | % | 99.2 | % |
TOTAL STABILIZED OFFICE PORTFOLIO | 121 | 100.0 | % | 100.0 | % | 15,199,178 | 91.5 | % | 91.8 | % | 93.9 | % |
Average Office Occupancy | |
Quarter-to-Date | Year-to-Date |
91.7% | 91.7% |
Q3 2021 Supplemental Financial Report
|
Submarket | Square Feet | Occupied | Leased | |||
Greater Los Angeles, California | ||||||
3101-3243 La Cienega Boulevard | Culver City | 151,908 | 94.3 | % | 94.3 | % |
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 | 244,880 | 88.3 | % | 88.3 | % |
999 N. Pacific Coast Highway | El Segundo | 138,389 | 75.9 | % | 75.9 | % |
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 | 264,430 | 100.0 | % | 100.0 | % |
6115 W. Sunset Boulevard | Hollywood | 26,238 | 73.1 | % | 100.0 | % |
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 | 87.7 | % | 90.9 | % |
3780 Kilroy Airport Way | Long Beach | 221,452 | 96.8 | % | 99.4 | % |
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 | 96,468 | 100.0 | % | 100.0 | % |
3900 Kilroy Airport Way | Long Beach | 130,935 | 91.5 | % | 91.5 | % |
8560 W. Sunset Boulevard (1)
| West Hollywood | 76,359 | 40.6 | % | 43.0 | % |
8570 W. Sunset Boulevard | West Hollywood | 49,276 | 92.9 | % | 92.9 | % |
8580 W. Sunset Boulevard | West Hollywood | 6,875 | 0.0 | % | 59.0 | % |
8590 W. Sunset Boulevard | West Hollywood | 56,750 | 94.0 | % | 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 | 66.5 | % | 66.5 | % |
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 | 88.4 | % | 88.4 | % |
501 Santa Monica Boulevard | West Los Angeles | 76,803 | 84.7 | % | 84.7 | % |
Total Greater Los Angeles | 4,436,201 | 86.4 | % | 87.0 | % | |
Q3 2021 Supplemental Financial Report
|
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 | Del Mar | 89,990 | 41.6 | % | 100.0 | % |
12390 El Camino Real | Del Mar | 69,421 | 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 | % |
12830 El Camino Real | Del Mar | 196,444 | 89.0 | % | 100.0 | % |
12860 El Camino Real | Del Mar | 92,042 | 82.4 | % | 100.0 | % |
12348 High Bluff Drive | Del Mar | 39,193 | 58.3 | % | 61.2 | % |
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 | 132,425 | 100.0 | % | 100.0 | % |
3661 Valley Centre Drive | Del Mar | 128,364 | 82.6 | % | 82.6 | % |
3721 Valley Centre Drive | Del Mar | 115,193 | 100.0 | % | 100.0 | % |
3811 Valley Centre Drive | Del Mar | 118,912 | 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 | 100.0 | % | 100.0 | % |
13500 Evening Creek Drive North | I-15 Corridor | 143,749 | 92.9 | % | 92.9 | % |
13520 Evening Creek Drive North | I-15 Corridor | 143,654 | 84.2 | % | 90.8 | % |
2305 Historic Decatur Road | Point Loma | 107,456 | 100.0 | % | 100.0 | % |
4690 Executive Drive | University Towne Center | 47,846 | 67.1 | % | 100.0 | % |
9455 Towne Centre Drive | University Towne Center | 160,444 | 100.0 | % | 100.0 | % |
Total San Diego County | 2,618,951 | 91.8 | % | 97.5 | % | |
Q3 2021 Supplemental Financial Report
|
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 | 48.9 | % | 48.9 | % |
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 | 100.0 | % | 100.0 | % |
100 First Street | San Francisco | 480,457 | 92.3 | % | 96.4 | % |
303 Second Street | San Francisco | 784,658 | 84.1 | % | 92.5 | % |
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 | % |
350 Oyster Point Boulevard | South San Francisco | 234,892 | 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 | 5,762,614 | 93.0 | % | 95.3 | % | |
Q3 2021 Supplemental Financial Report
|
Submarket | Square Feet | Occupied | Leased | |||
Greater Seattle, Washington | ||||||
601 108th Avenue NE | Bellevue | 490,738 | 88.5 | % | 98.5 | % |
10900 NE 4th Street | Bellevue | 428,557 | 99.2 | % | 99.2 | % |
2001 West 8th Avenue | Denny Regrade | 539,226 | 100.0 | % | 100.0 | % |
701 N. 34th Street | Lake Union | 141,860 | 100.0 | % | 100.0 | % |
801 N. 34th Street | Lake Union | 173,615 | 100.0 | % | 100.0 | % |
837 N. 34th Street | Lake Union | 112,487 | 100.0 | % | 100.0 | % |
320 Westlake Avenue North | Lake Union | 184,644 | 95.5 | % | 95.5 | % |
321 Terry Avenue North | Lake Union | 135,755 | 100.0 | % | 100.0 | % |
401 Terry Avenue North | Lake Union | 174,530 | 100.0 | % | 100.0 | % |
Total Greater Seattle | 2,381,412 | 97.2 | % | 99.2 | % | |
TOTAL STABILIZED OFFICE PORTFOLIO | 15,199,178 | 91.5 | % | 93.9 | % | |
Average Residential Occupancy | ||||
COMPLETED RESIDENTIAL PROPERTIES | Submarket | Total No. of Units | Quarter-to-Date | Year-to-Date |
Greater Los Angeles | ||||
1550 N. El Centro Avenue | Hollywood | 200 | 92.0% | 91.6% |
6390 De Longpre Avenue | Hollywood | 193 | 27.5% | 18.2% |
San Diego County | ||||
3200 Paseo Village Way | Del Mar | 608 | 92.5% | 78.0% |
TOTAL COMPLETED RESIDENTIAL PROPERTIES | 1,001 | 79.9% | 74.0% | |
Q3 2021 Supplemental Financial Report
|
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 | 11 | 11 | 360,877 | 77,160 | 25.0 | % | $ | 28.38 | $ | 5.08 | 53.7 | % | 32.5 | % | 67 |
Year to Date | 33 | 32 | 955,173 | 283,431 | 34.8 | % | 64.05 | 9.85 | 54.1 | % | 31.8 | % | 78 | ||
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)
| 14 | 11 | 382,338 | 77,160 | $ | 44.77 | $ | 10.33 | 24.4 | % | 8.3 | % | 52 |
Year to Date (6)
| 33 | 32 | 580,930 | 283,431 | 33.84 | 7.96 | 21.2 | % | 7.1 | % | 51 | ||
Q3 2021 Supplemental Financial Report
|
Total 2021 | Q3 2021 | Q2 2021 | Q1 2021 | |||||
1st Generation (Nonrecurring) Capital Expenditures: (1)
| ||||||||
Capital Improvements | $ | 13,815 | $ | 3,003 | $ | 5,856 | $ | 4,956 |
Tenant Improvements & Leasing Commissions (2)
| 986 | 561 | - | 425 | ||||
Total | $ | 14,801 | $ | 3,564 | $ | 5,856 | $ | 5,381 |
Total 2021 | Q3 2021 | Q2 2021 | Q1 2021 | |||||
2nd Generation (Recurring) Capital Expenditures: (1)
| ||||||||
Capital Improvements | $ | 22,978 | $ | 8,521 | $ | 7,659 | $ | 6,798 |
Tenant Improvements & Leasing Commissions (2)
| 40,519 | 7,581 | 12,827 | 20,111 | ||||
Total | $ | 63,497 | $ | 16,102 | $ | 20,486 | $ | 26,909 |
Q3 2021 Supplemental Financial Report
|
# of Expiring Leases | 15 | 23 | 15 | 17 | 17 | 78 | 65 | 58 | 47 | 41 | 23 | 21 | 35 | 43 | ||||||||||||||
% of Total Leased Sq. Ft. | 1.0 | % | 3.1 | % | 1.1 | % | 1.2 | % | 1.4 | % | 11.3 | % | 7.5 | % | 5.7 | % | 13.3 | % | 8.3 | % | 7.0 | % | 6.5 | % | 9.9 | % | 22.7 | % |
Annualized Base Rent | $6,706 | $11,229 | $5,824 | $7,087 | $9,568 | $78,272 | $48,557 | $36,659 | $82,946 | $44,724 | $61,249 | $48,922 | $74,910 | $209,369 | ||||||||||||||
% of Total Annualized Base Rent (4)
| 0.9 | % | 1.5 | % | 0.8 | % | 1.0 | % | 1.3 | % | 10.8 | % | 6.7 | % | 5.1 | % | 11.4 | % | 6.2 | % | 8.4 | % | 6.7 | % | 10.3 | % | 28.9 | % |
Annualized Rent per Sq. Ft. | $50.06 | $27.17 | $37.79 | $41.77 | $49.42 | $50.61 | $47.67 | $47.39 | $45.83 | $39.16 | $63.89 | $55.55 | $55.39 | $67.58 |
Q3 2021 Supplemental Financial Report
|
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 | 12 | 65,635 | 0.5 | % | $ | 2,593 | 0.4 | % | $ | 39.51 |
San Diego | 1 | 6,112 | - | % | 188 | - | % | 30.76 | |||
San Francisco Bay Area | 1 | 60,941 | 0.5 | % | 3,867 | 0.5 | % | 63.45 | |||
Greater Seattle | 1 | 1,272 | - | % | 58 | - | % | 45.60 | |||
Total | 15 | 133,960 | 1.0 | % | $ | 6,706 | 0.9 | % | $ | 50.06 | |
2022 | Greater Los Angeles | 50 | 445,866 | 3.3 | % | $ | 18,784 | 2.6 | % | $ | 42.13 |
San Diego | 12 | 357,480 | 2.5 | % | 9,271 | 1.3 | % | 25.93 | |||
San Francisco Bay Area | 5 | 50,108 | 0.4 | % | 3,180 | 0.4 | % | 63.46 | |||
Greater Seattle | 5 | 77,218 | 0.6 | % | 2,473 | 0.3 | % | 32.03 | |||
Total | 72 | 930,672 | 6.8 | % | $ | 33,708 | 4.6 | % | $ | 36.22 | |
2023 | Greater Los Angeles | 41 | 401,878 | 2.9 | % | $ | 21,539 | 3.0 | % | $ | 53.60 |
San Diego | 12 | 217,689 | 1.6 | % | 9,333 | 1.3 | % | 42.87 | |||
San Francisco Bay Area | 16 | 437,588 | 3.2 | % | 26,785 | 3.7 | % | 61.21 | |||
Greater Seattle | 9 | 489,497 | 3.6 | % | 20,615 | 2.8 | % | 42.11 | |||
Total | 78 | 1,546,652 | 11.3 | % | $ | 78,272 | 10.8 | % | $ | 50.61 | |
2024 | Greater Los Angeles | 36 | 485,711 | 3.6 | % | $ | 20,911 | 2.9 | % | $ | 43.05 |
San Diego | 7 | 49,125 | 0.4 | % | 2,794 | 0.4 | % | 56.88 | |||
San Francisco Bay Area | 14 | 261,416 | 1.9 | % | 16,925 | 2.3 | % | 64.74 | |||
Greater Seattle | 8 | 222,282 | 1.6 | % | 7,927 | 1.1 | % | 35.66 | |||
Total | 65 | 1,018,534 | 7.5 | % | $ | 48,557 | 6.7 | % | $ | 47.67 | |
2025 | Greater Los Angeles | 19 | 192,587 | 1.4 | % | $ | 8,000 | 1.1 | % | $ | 41.54 |
San Diego | 22 | 229,493 | 1.7 | % | 9,627 | 1.3 | % | 41.95 | |||
San Francisco Bay Area | 7 | 213,077 | 1.6 | % | 13,563 | 1.9 | % | 63.65 | |||
Greater Seattle | 10 | 138,462 | 1.0 | % | 5,469 | 0.8 | % | 39.50 | |||
Total | 58 | 773,619 | 5.7 | % | $ | 36,659 | 5.1 | % | $ | 47.39 | |
2026 and Beyond | Greater Los Angeles | 55 | 2,107,337 | 15.4 | % | $ | 96,600 | 13.3 | % | $ | 45.84 |
San Diego | 67 | 1,527,828 | 11.2 | % | 82,780 | 11.4 | % | 54.18 | |||
San Francisco Bay Area | 51 | 4,245,686 | 31.1 | % | 286,766 | 39.5 | % | 67.54 | |||
Greater Seattle | 37 | 1,360,942 | 10.0 | % | 55,974 | 7.7 | % | 41.13 | |||
Total | 210 | 9,241,793 | 67.7 | % | $ | 522,120 | 71.9 | % | $ | 56.50 | |
Q3 2021 Supplemental Financial Report
|
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 | 4.9 | % | 2.4 | % | 2031 |
Amazon.com | Greater Seattle | 33,800 | 780,757 | 4.6 | % | 5.0 | % | 2023 / 2029 / 2030 | |
LinkedIn Corporation / Microsoft Corporation | San Francisco Bay Area | 29,752 | 663,460 | 4.0 | % | 4.3 | % | 2024 / 2026 | |
Adobe Systems, Inc. | San Francisco Bay Area / Greater Seattle | 27,897 | 517,314 | 3.8 | % | 3.3 | % | 2027 / 2031 | |
salesforce.com, inc. | San Francisco Bay Area | 24,076 | 451,763 | 3.3 | % | 2.9 | % | 2031 / 2032 | |
DoorDash, Inc. | San Francisco Bay Area | 23,842 | 236,759 | 3.2 | % | 1.5 | % | 2032 | |
DIRECTV, LLC (3)
| Greater Los Angeles | 23,152 | 684,411 | 3.1 | % | 4.4 | % | 2027 | |
Fortune 50 Publicly-Traded Company | Greater Seattle / San Diego County | 23,059 | 472,427 | 3.1 | % | 3.0 | % | 2032 / 2033 | |
Okta, Inc. | San Francisco Bay Area | 22,387 | 273,371 | 3.0 | % | 1.8 | % | 2028 | |
Netflix, Inc. | Greater Los Angeles | 21,943 | 362,868 | 3.0 | % | 2.3 | % | 2022 / 2032 | |
Box, Inc. | San Francisco Bay Area | 20,390 | 341,441 | 2.8 | % | 2.2 | % | 2028 | |
Cytokinetics, Inc. | San Francisco Bay Area | 19,192 | 234,892 | 2.6 | % | 1.5 | % | 2033 | |
Synopsys, Inc. | San Francisco Bay Area | 15,492 | 342,891 | 2.1 | % | 2.2 | % | 2030 | |
Riot Games, Inc. | Greater Los Angeles | 15,152 | 243,051 | 2.1 | % | 1.6 | % | 2023 / 2024 | |
Neurocrine Biosciences, Inc. | San Diego County | 13,917 | 254,578 | 1.9 | % | 1.6 | % | 2024 / 2031 | |
Total Top Fifteen Tenants | $ | 350,388 | 6,234,601 | 47.5 | % | 40.0 | % | ||
Q3 2021 Supplemental Financial Report
|
COMPLETED OPERATING PROPERTY ACQUISITIONS | Submarket |
Month of Acquisition | Number of Buildings | Rentable Square Feet |
Purchase Price (1) | |
1st Quarter | ||||||
None | ||||||
2nd Quarter | ||||||
None | ||||||
3rd Quarter | ||||||
2001 West 8th Avenue, Seattle, WA | Denny Regrade | September | 1 | 539,226 | $ | 490.0 |
TOTAL | 1 | 539,226 | $ | 490.0 | ||
COMPLETED LAND ACQUISITIONS | Submarket |
Month of Acquisition |
Purchase Price (1) | |
1st Quarter | ||||
None | ||||
2nd Quarter | ||||
None | ||||
3rd Quarter | ||||
601 108th Ave NE, Bellevue, WA (2)
| Bellevue | July | $ | 47.0 |
TOTAL | $ | 47.0 | ||
Q3 2021 Supplemental Financial Report
|
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 | ||||||
3rd Quarter | ||||||
None | ||||||
TOTAL DISPOSITIONS | 1 | 750,370 | $ | 1.08 | ||
Q3 2021 Supplemental Financial Report
|
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% |
Q3 2021 Supplemental Financial Report
|
STABILIZED OFFICE/LIFE SCIENCE 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% | |
3rd Quarter | |||||||
12830 El Camino Real (One Paseo - Office Building 2) | Del Mar | 4Q 2018 | 3Q 2021 | 145.0 | 196,444 | 89% | |
350 Oyster Point Boulevard (Kilroy Oyster Point - Phase 1) (2)
| South San Francisco | 1Q 2019 | 3Q 2021 | 215.0 | 234,892 | 100% | |
TOTAL: | $ | 520.0 | 683,822 | 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 | 63% |
3rd Quarter | |||||||
None | |||||||
TOTAL: | $ | 185.0 | 193 | 63% | |||
Q3 2021 Supplemental Financial Report
|
Location | Construction Start Date |
Estimated Stabilization Date (2)
| Estimated Rentable Square Feet | Total Estimated Investment |
Total Cash Costs Incurred as of
9/30/2021 (3)
| % Leased | Total Project % Occupied | |||
TENANT IMPROVEMENT (1)
| ||||||||||
Office / Life Science | ||||||||||
San Francisco Bay Area | ||||||||||
352 and 354 Oyster Point Boulevard
(Kilroy Oyster Point - Phase 1) (4)
| South San Francisco | 1Q 2019 | 4Q 2021 | 421,000 | $ | 355.0 | $ | 266.7 | 100% | -% |
San Diego County | ||||||||||
2100 Kettner (5)
| Little Italy | 3Q 2019 | 3Q 2022 | 235,000 | 140.0 | 107.9 | -% | -% | ||
Greater Seattle | ||||||||||
333 Dexter | South Lake Union | 2Q 2017 | 3Q 2022 | 635,000 | 410.0 | 374.5 | 100% | 49% | ||
Austin | ||||||||||
Indeed Tower | Austin CBD | 2Q 2021 | 4Q 2022 | 734,000 | 680.0 | 555.6 | 57% | -% | ||
TOTAL: | 2,025,000 | $ | 1,585.0 | $ | 1,304.7 | 73% | 15% | |||
UNDER CONSTRUCTION | Location | Construction Start Date |
Estimated Stabilization Date (2)
| Estimated Rentable Square Feet | Total Estimated Investment |
Total Cash Costs Incurred as of
9/30/2021 (3)
| Office % Leased | ||
Office / Life Science | |||||||||
San Francisco Bay Area | |||||||||
Kilroy Oyster Point - Phase 2 (6)
| South San Francisco | 2Q 2021 | 4Q 2024 | 875,000 | $ | 940.0 | $ | 172.3 | -% |
San Diego County | |||||||||
9514 Towne Centre Drive | University Towne Center | 3Q 2021 | 4Q 2023 | 71,000 | 60.0 | 7.9 | 100% | ||
TOTAL: | 946,000 | $ | 1,000.0 | $ | 180.2 | 8% | |||
Q3 2021 Supplemental Financial Report
|
Location |
Estimated Construction Period (1)
|
Rentable Square Feet Leased (2)
|
Estimated Redevelopment Costs (3)
| |||
COMMITTED | Start Date | Completion Date | ||||
Life Science | ||||||
San Diego County | ||||||
12340 El Camino Real | Del Mar | 4Q 2021 | 3Q 2022 | 96,000 | $ | 40.0 |
12400 High Bluff Drive | Del Mar | 1Q 2022 | 3Q 2022 | 182,000 | 50.0 | |
4690 Executive Drive | University Towne Center | 2Q 2022 | 3Q 2023 | 52,000 | 25.0 | |
TOTAL: | 330,000 | $ | 115.0 | |||
Q3 2021 Supplemental Financial Report
|
FUTURE DEVELOPMENT PIPELINE | Location |
Approx. Developable
Square Feet (1)
|
Total Cash Costs Incurred as of 9/30/2021 (2)
| |
San Diego County | ||||
Santa Fe Summit - Phases 2 and 3 | 56 Corridor | 600,000 - 650,000 | $ | 85.2 |
2045 Pacific Highway | Little Italy | 275,000 | 48.1 | |
Kilroy East Village | East Village | TBD | 60.5 | |
San Francisco Bay Area | ||||
Kilroy Oyster Point - Phases 3 and 4 (3)
| South San Francisco | 875,000 - 1,000,000 | 200.3 | |
Flower Mart | SOMA | 2,300,000 | 420.9 | |
Greater Seattle | ||||
SIX0 - Office & Residential | Denny Regrade | 925,000 | 144.1 | |
TOTAL: | $ | 959.1 | ||
Q3 2021 Supplemental Financial Report
|
Debt Balance (4)
| Stated Rate | Maturity Date | ||
Unsecured Debt (5)
| ||||
$ | 300,000 | 3.80 | % | 1/15/2023 |
$ | 425,000 | 3.45 | % | 12/15/2024 |
$ | 400,000 | 4.38 | % | 10/1/2025 |
$ | 50,000 | 4.30 | % | 7/18/2026 |
$ | 200,000 | 4.35 | % | 10/18/2026 |
$ | 175,000 | 3.35 | % | 2/17/2027 |
$ | 400,000 | 4.75 | % | 12/15/2028 |
$ | 75,000 | 3.45 | % | 2/17/2029 |
$ | 400,000 | 4.25 | % | 8/15/2029 |
$ | 500,000 | 3.05 | % | 2/15/2030 |
$ | 350,000 | 4.27 | % | 1/31/2031 |
$ | 425,000 | 2.50 | % | 11/15/2032 |
Secured Debt | ||||
$ | 164,281 | 3.57 | % | 12/1/2026 |
$ | 86,097 | 4.48 | % | 7/1/2027 |
Q3 2021 Supplemental Financial Report
|
TOTAL DEBT COMPOSITION (1)
| ||
Weighted Average | ||
Interest Rate | Years to Maturity | |
Secured vs. Unsecured Debt | ||
Unsecured Debt | 3.8% | 6.6 |
Secured Debt | 3.9% | 5.4 |
Floating vs. Fixed-Rate Debt | ||
Floating-Rate Debt | -% | - |
Fixed-Rate Debt | 3.8% | 6.5 |
Stated Interest Rate | 3.8% | 6.5 |
GAAP Effective Rate | 3.8% | |
GAAP Effective Rate Including Debt Issuance Costs | 4.0% | |
KEY DEBT COVENANTS | ||
Covenant |
Actual Performance as of September 30, 2021 | |
Unsecured Credit Facility and Private Placement Notes (as defined in the Credit Agreements): | ||
Total debt to total asset value | less than 60% | 29% |
Fixed charge coverage ratio | greater than 1.5x | 3.3x |
Unsecured debt ratio | greater than 1.67x | 3.19x |
Unencumbered asset pool debt service coverage | greater than 1.75x | 3.75x |
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 | 7.5x |
Secured debt to total asset value | less than 40% | 2% |
Unencumbered asset pool value to unsecured debt | greater than 150% | 322% |
Q3 2021 Supplemental Financial Report
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Q3 2021 Supplemental Financial Report
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Q3 2021 Supplemental Financial Report
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Q3 2021 Supplemental Financial Report
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Q3 2021 Supplemental Financial Report
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Q3 2021 Supplemental Financial Report
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Net Income Available to Common Stockholders | $ | 47,028 | $ | 49,028 | $ | 580,498 | $ | 108,463 |
Net income attributable to noncontrolling common units of the Operating Partnership | 460 | 785 | 5,700 | 1,857 | ||||
Net income attributable to noncontrolling interests in consolidated property partnerships | 6,005 | 4,258 | 17,586 | 13,521 | ||||
Net Income | 53,493 | 54,071 | 603,784 | 123,841 | ||||
Adjustments: | ||||||||
General and administrative expenses | 22,990 | 18,572 | 69,482 | 76,179 | ||||
Leasing costs | 798 | 986 | 2,373 | 3,772 | ||||
Depreciation and amortization | 73,213 | 71,863 | 222,734 | 226,318 | ||||
Interest income and other net investment (gain) loss | (976) | (1,869) | (3,686) | (1,579) | ||||
Interest expense | 16,105 | 19,468 | 59,829 | 49,796 | ||||
Gain on sale of depreciable operating property | - | - | (457,831) | - | ||||
Net Operating Income, as defined (1)
| 165,623 | 163,091 | 496,685 | 478,327 | ||||
Wholly-Owned Properties | 140,512 | 142,523 | 421,839 | 416,007 | ||||
Consolidated property partnerships: (2)
| ||||||||
100 First Street (3)
| 6,123 | 5,470 | 18,700 | 15,858 | ||||
303 Second Street (3)
| 12,978 | 9,338 | 38,234 | 29,220 | ||||
Crossing/900 (4)
| 6,010 | 5,760 | 17,912 | 17,242 | ||||
Net Operating Income, as defined (1)
| 165,623 | 163,091 | 496,685 | 478,327 | ||||
Non-Same Store Net Operating Income (5)
| (19,928) | (21,931) | (66,622) | (58,286) | ||||
Same Store Net Operating Income | 145,695 | 141,160 | 430,063 | 420,041 | ||||
GAAP to Cash Adjustments: | ||||||||
GAAP Operating Revenues Adjustments, net (6)
| 5,707 | (11,305) | (12,835) | (27,737) | ||||
GAAP Operating Expenses Adjustments, net (7)
| 66 | 50 | 167 | 153 | ||||
Same Store Cash Net Operating Income | $ | 151,468 | $ | 129,905 | $ | 417,395 | $ | 392,457 |
Q3 2021 Supplemental Financial Report
|
Three Months Ended September 30, | ||||
2021 | 2020 | |||
Net Income Available to Common Stockholders | $ | 47,028 | $ | 49,028 |
Interest expense | 16,105 | 19,468 | ||
Depreciation and amortization | 73,213 | 71,863 | ||
Net income attributable to noncontrolling common units of the Operating Partnership | 460 | 785 | ||
Net income attributable to noncontrolling interests in consolidated property partnerships | 6,005 | 4,258 | ||
EBITDA, as adjusted (1)
| $ | 142,811 | $ | 145,402 |
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Kilroy Realty Corporation published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 10:10:54 UTC.