Kilroy Earnings, FFO Increase

LOS ANGELES-Kilroy Realty Corp. reported higher earnings Tuesday for the second quarter ended June 30, with net income of $13.4 million, or 49 cents per share, compared to $5 million, or 18 cents per share, in the second quarter of 2002. The real estate investment trust says funds from operations in the second quarter totaled $24.9 million, or 78 cents per share, compared to $23.4 million, or 73 per share, in the previous year’s second quarter. Revenue from continuing operations in the second quarter totaled $51.3 million, up from $48.7 million in the year-earlier period.

The quarterly financial statement included a report that Kilroy will receive a payment in the third quarter of 2003 of approximately $18 million and four additional payments of approximately $750,000 from Peregrine Systems Inc., to be paid annually over the next four years. The payments are part of the reimbursement for Peregrine’s termination of all but one of five leases at Kilroy buildings. Peregrine terminated the leases as part of its Chapter 11 bankruptcy.