Los Angeles-based Kilroy Realty Corp. recently reported financial results for its first quarter ended March 31, 2018. The REIT said that funds from operations available to common stockholders and unitholders per share of $0.94. During 1Q18, signed approximately 301,000 square feet of new or renewing leases.
Year-to-date, signed 97,000 square feet of leases at the company’s Skyline Tower project in Bellevue, WA. In April, the company signed lease renewals with three existing life science tenants, two located in the Silicon Valley and one in Seattle, that in aggregate total 310,000 square feet.
According to a report from a BTIG analyst, the reported FFO of $0.94 was higher than the company’s estimate. “We expect Kilroy to generate above average internal growth and development value creation,” said the analyst report.
The firm’s development numbers show that in January, the company started construction on Phase I of Academy on Vine, a mixed-use development project located in the Hollywood submarket of Los Angeles. Phase I is comprised of 306,000 square feet of office space and 24,000 square feet of retail space with a total estimated investment of $260 million. Year-to-date, the company signed leases totaling 33,500 square feet of production, distribution and repair space at the company’s 100 Hooper project in San Francisco and leases totaling 31,800 square feet of retail space at the company’s One Paseo mixed-use project in Del Mar.
As for acquisitions, in January, the REIT acquired three two-story lab buildings that are 78.5% occupied and total approximately 146,000 square feet in South San Francisco for $111.0 million.
All in all, the BTIG analyst said that while there might be weaker fundamentals through mid-year, they remain positive on the longer-term outlook for Kilroy.