LOS ANGELES-Kilroy Realty Corp. has arranged a $500 million lineof credit to be used for general corporate purposes, includingacquisition and development, the L.A.-based REIT says. Kilroy,which bought four properties in the second quarter, arranged thethree-year unsecured line of credit―plus a one-yearextension option―from a syndicated group of 17 US andinternational banks led by J.P. Morgan Securities Inc. and Banc ofAmerica Securities LLC. In addition to acquisitions anddevelopment, Kilroy plans to use the funds for redevelopmentprograms and repaying long-term debt.

|

Kilroy recently reported its financial results for the secondquarter, which showed that it closed on four separate officeproperty acquisitions totaling approximately 1.3 million squarefeet and $411.4 million during the quarter. The largest of thesewas 303 Second St., a 732,000-square-foot office project in theSouth Financial District of San Francisco that it bought forapproximately $233.3 million. The project was 89.7% occupied atJune 30.

|

The other threedeals, as reported previously on GlobeSt.com, includeda 99,000-square-foot office building near Children's Hospital ofOrange County in the City of Orange that is 100% occupied by asingle tenant, the 272,000-square-foot 2211 Michelson Dr. officetower in Irvine and three office buildings totaling 191,000 squarefeet in the Mission Valley submarket of San Diego.

|

John B. Kilroy Jr., KRC's president and chief executive officer,said in a prepared statement that, "While our earnings werenegatively impacted by our recent tender offer and related debtfinancing, the performance of our core portfolio continues toimprove with our stabilized occupancy up to 85.1% from 82.8% lastquarter." Kilroy also observed, "We continue to see good leasingmomentum in a mixed real estate market and believe our recentacquisitions will generate long-term value to the company."

|

Kilroy's quarterly results showed a net loss of $1.8 million, or$0.04 per share, compared to net income available to commonstockholders of $9.1 million, or $0.25 per share, in the secondquarter of 2009. Revenues from continuing operations in the secondquarter totaled $72.4 million, up from $71.1 million in theprevious year's second quarter. Funds from operations for theperiod totaled $21.7 million, or $0.41 per share, compared to $30.3million, or $0.79 per share, in the year-earlier period.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.