LOS ANGELES, April 30, 2001 (PRIMEZONE) -- Kilroy Realty Corporation (NYSE:KRC) today reported financial results for its first quarter ended March 31, 2001, with funds from operations (FFO) of $21.9 million, or $0.72 per share, up 9.1% on a per-share basis from $20.7 million, or $0.66 per share, in the first quarter of 2000. Net income in the first quarter was $6.4 million, or $0.24 per share, compared to $9.6 million, or $0.35 per share, in the year-earlier quarter. Revenues totaled $50.4 million, up from $43.8 million a year ago. All per-share amounts are presented on a diluted basis.
KRC's occupancy rate on its 12.8 million square feet of stabilized properties at the end of the first quarter was 97%. The company is currently developing or is committed to develop approximately one million additional square feet of office space in Southern California, with completion dates scheduled through mid-2002. This committed development pipeline, representing a total investment of approximately $250 million, is currently 52% preleased.
Some of the information presented in this release is forward-looking in nature within the meaning of the federal securities law. Although the information is based on the company's current best judgment, actual results, including the timing and total investment of the company's development projects, could vary from expectations stated here. Numerous factors will affect KRC's actual results, some of which are beyond the company's control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels, capital market conditions and risks detailed from time to time in the company's SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.
Kilroy Realty Corporation is a southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets in the coastal regions of California and Washington. Principal submarkets for KRC's current development projects include Calabasas, West Los Angeles, and coastal San Diego, where the company's total development pipeline is approximately $500 million. At March 31, 2001, the company owned 7.1 million square feet of commercial office space and 5.8 million square feet of industrial space. More information on Kilroy Realty can be found at www.kilroyrealty.com.
KILROY REALTY CORPORATION
SUMMARY QUARTERLY RESULTS
-------------------------
(unaudited, in thousands, except per share data)
Three Months
Ended
March 31,
2001 2000
------- -------
Revenues $50,367 $43,771
Net income available
to common stockholders (1) $ 6,426 $ 9,578
Weighted average common shares
outstanding - basic 26,713 27,228
Weighted average common shares
outstanding - diluted 26,971 27,229
Net income per share of
common stock - basic $ 0.24 $ 0.35
Net income per share of
common stock - diluted $ 0.24 $ 0.35
Funds From Operations $21,876 $20,680
Weighted average common
shares/units outstanding - basic (2) 30,225 31,130
Weighted average common
shares/units outstanding - diluted (2) 30,484 31,130
Funds From Operations per
common share/unit - basic (2) $ 0.72 $ 0.66
Funds From Operations per
common share/unit - diluted (2) $ 0.72 $ 0.66
Common shares outstanding
at end of period 26,975 26,223
Common partnership units
outstanding at end of period 3,282 3,805
------- -------
Total common shares
and units outstanding
at end of period 30,257 30,028
March 31, March 31,
2001 2000
------- -------
Occupancy rates:
California 96.4% 96.6%
Washington 100.0% 100.0%
Arizona 100.0% 100.0%
Nevada 100.0% 100.0%
------- -------
Weighted average total 96.6% 96.8%
Total square feet of stabilized
properties owned at end of period:
Office 7,064 6,225
Industrial 5,768 6,432
------- -------
Total 12,832 12,657
(1) Net income after minority interests.
(2) Calculated based on weighted average shares outstanding assuming
conversion of all common limited partnership units outstanding.
KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS
-----------------------------------------------------
(unaudited, in thousands)
March 31, December 31,
2001 2000
----------- -----------
ASSETS
INVESTMENT IN REAL ESTATE:
Land and improvements $ 272,013 $ 266,444
Buildings and improvements 1,106,079 1,054,995
Undeveloped land and
construction in progress,
net 181,674 162,633
Investment in unconsolidated
real estate -- 12,405
----------- -----------
Total investment in real estate 1,559,766 1,496,477
Accumulated depreciation
and amortization (215,176) (205,332)
----------- -----------
Investment in real estate,
net 1,344,590 1,291,145
Cash and cash equivalents 19,669 17,600
Restricted cash 6,662 35,014
Tenant receivables, net 28,695 32,521
Note receivable from
related party -- 33,274
Deferred financing and
leasing costs, net 35,633 39,674
Prepaid expenses and
other assets 9,226 7,941
----------- -----------
TOTAL ASSETS $ 1,444,475 $ 1,457,169
=========== ===========
LIABILITIES & STOCKHOLDERS'
EQUITY
LIABILITIES:
Secured debt $ 440,541 $ 432,688
Unsecured line of credit 162,000 191,000
Unsecured term facility 100,000 100,000
Accounts payable and accrued
expenses 39,752 33,911
Accrued distributions 14,523 13,601
Rents received in advance,
tenant security deposits
and deferred revenue 30,909 17,810
----------- -----------
Total liabilities 787,725 789,010
----------- -----------
MINORITY INTERESTS:
8.075% Series A Cumulative
Redeemable Preferred
unitholders 73,716 73,716
9.375% Series C Cumulative
Redeemable Preferred
unitholders 34,464 34,464
9.250% Series D Cumulative
Redeemable Preferred
unitholders 44,321 44,321
Common unitholders of the
Operating Partnership 53,440 62,485
Minority interest in
Development LLCs 11,707 11,748
----------- -----------
Total minority interests 217,648 226,734
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock 270 265
Additional paid-in capital 470,077 460,390
Distributions in excess of
earnings (25,751) (19,230)
Accumulated other comprehensive
loss (5,494) --
----------- -----------
Total stockholders' equity 439,102 441,425
----------- -----------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 1,444,475 $ 1,457,169
=========== ===========
KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
---------------------------------------------------------------
(unaudited, in thousands, except per share data)
Three Months
Ended
March 31,
2001 2000
-------- --------
REVENUES:
Rental income $ 44,379 $ 37,702
Tenant reimbursements 5,520 4,694
Interest income 436 294
Other income 32 1,081
-------- --------
Total revenues 50,367 43,771
-------- --------
EXPENSES:
Property expenses 6,895 5,458
Real estate taxes 3,635 3,387
General and administrative
expenses 3,354 2,632
Ground leases 392 389
Interest expense 10,791 7,828
Depreciation and amortization 13,433 9,323
-------- --------
Total expenses 38,500 29,017
-------- --------
Income from operations 11,867 14,754
Net gains (losses) on
dispositions of operating
properties 305 (305)
-------- --------
Income before minority
interests and cumulative effect
of change in accounting principle 12,172 14,449
-------- --------
Minority interests:
Distributions on Cumulative
Redeemable Preferred units (3,375) (3,375)
Minority interest in earnings
of Operating Partnership (845) (1,372)
Minority interest in earnings
of Development LLCs (134) (124)
-------- --------
Total minority interests (4,354) (4,871)
-------- --------
Net income before cumulative
effect of change in accounting
principle 7,818 9,578
Cumulative effect of change
in accounting principle (1,392) --
-------- --------
Net Income $ 6,426 $ 9,578
======== ========
Weighted average shares
outstanding - basic 26,713 27,228
Weighted average shares
outstanding - diluted 26,971 27,229
Income per common share
- basic $ 0.24 $ 0.35
======== ========
Income per common share
- diluted $ 0.24 $ 0.35
======== ========
KILROY REALTY CORPORATION
FUNDS FROM OPERATIONS
---------------------
(unaudited, in thousands, except per share data)
Three Months
Ended
March 31,
2001 2000
-------- --------
Net income $ 6,426 $ 9,578
Adjustments:
Minority interest in earnings
of Operating Partnership 845 1,372
Depreciation and amortization 12,970 9,323
Net (gains) losses on dispositions
of operating properties (305) 305
Cumulative effect of change in
accounting principle 1,392
Non-cash amortization of
restricted stock grants 548 102
-------- --------
Funds From Operations $ 21,876 $ 20,680
======== ========
Weighted average common
shares/units outstanding - basic 30,225 31,130
Weighted average common
shares/units outstanding - diluted 30,484 31,130
Funds From Operations
per common share/unit - basic $ 0.72 $ 0.66
======== ========
Funds From Operations
per common share/unit - diluted $ 0.72 $ 0.66
======== ========
KILROY REALTY CORPORATION
FUNDS AVAILABLE FOR DISTRIBUTION
--------------------------------
(unaudited, in thousands, except per share data)
Three Months
Ended
March 31,
2001 2000
-------- --------
Funds From Operations $ 21,876 $ 20,680
Adjustments:
Amortization of deferred
financing costs 381 206
Tenant improvements, leasing
commissions and recurring
capital expenditures (1,011) (904)
Net effect of straight-line
rents (1,714) (1,508)
-------- --------
Funds Available for Distribution $ 19,532 $ 18,474
======== ========
Funds Available for Distribution
per common share/unit - basic $ 0.65 $ 0.59
======== ========
Funds Available for Distribution
per common share/unit - diluted $ 0.64 $ 0.59
======== ========