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Kilroy Realty Sees Strong Markets This Year

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Kilroy Realty Corp. has made significant leasing progress in both its stabilized and development portfolios. That is according to John Kilroy, president and CEO, on the firm’s Q3 earnings call. “We were successful in acquiring two strategic value add [Phonetic] properties and we improved our balance sheet. In summary, our markets remain strong.”

From San Diego to Seattle, the supply and demand fundamentals of every market the company competes in remains sound with low vacancy rates and increasing rents, he explained. “With these favorable conditions, we signed approximately 1.3 million square feet of leases in our stabilized and development portfolio since the end of last quarter. This includes 421,000 square feet with [Indecipherable] Kilroy Oyster Point.”

According to Kilroy, the company is on track to have another great year on top of its regular leasing last year. “Our stabilized portfolio is now 97% leased. We commenced construction on 2,100 Kettner, a $140 million office project in the Little Italy neighborhood, San Diego. We completed two acquisitions totaling $226 million; both provide attractive future redevelopment upside. We maintained a sharp focus on balance sheet, raising $616 million through the pending sale of one building in the issuance of public bonds, and we continue to build a world-class sustainable enterprise. We are ranked number one in sustainability across all publicly traded real estate companies in the Americas by GRESB for the 5th consecutive year. The EPA has awarded us the highest honor of Sustained Excellence for the past six years, and NAREIT has recognized us as a Leader in the Light for five years running. Further, we are on track to be carbon-neutral.”