Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Entity Registrant Name | 'KILROY REALTY CORP | ' |
Entity Central Index Key | '0001025996 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 82,218,417 |
Kilroy Realty, L.P. [Member] | ' | ' |
Entity Registrant Name | 'Kilroy Realty, L.P. | ' |
Entity Central Index Key | '0001493976 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
REAL ESTATE ASSETS: | ' | ' | ||
Land and improvements (Note 2) | $679,991 | $657,491 | ||
Buildings and improvements (Note 2) | 3,706,662 | 3,590,699 | ||
Undeveloped land and construction in progress | 1,047,371 | 1,016,757 | ||
Total real estate held for investment | 5,434,024 | 5,264,947 | ||
Accumulated depreciation and amortization | -854,977 | -818,957 | ||
Total real estate assets held for investment, net ($60,575 and $234,532 of VIE, respectively, Note 1) | 4,579,047 | 4,445,990 | ||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET (Note 13) | 28,272 | 213,100 | ||
CASH AND CASH EQUIVALENTS | 95,534 | 35,377 | ||
RESTRICTED CASH (Notes 1 and 13) | 33,717 | 49,780 | ||
MARKETABLE SECURITIES (Note 11) | 11,001 | 10,008 | ||
CURRENT RECEIVABLES, NET (Note 4) | 11,092 | 10,743 | ||
DEFERRED RENT RECEIVABLES, NET (Note 4) | 130,750 | 127,123 | ||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET (Notes 2 and 3) | 188,466 | 186,622 | ||
DEFERRED FINANCING COSTS, NET | 15,195 | 16,502 | ||
PREPAID EXPENSES AND OTHER ASSETS, NET | 21,469 | 15,783 | ||
TOTAL ASSETS | 5,114,543 | 5,111,028 | ||
LIABILITIES: | ' | ' | ||
Secured debt (Notes 5 and 11) | 556,946 | [1] | 560,434 | [1] |
Exchangeable senior notes, net (Notes 5 and 11) | 169,528 | 168,372 | ||
Unsecured debt, net (Notes 5 and 11) | 1,431,217 | 1,431,132 | ||
Unsecured line of credit (Notes 5 and 11) | 0 | 45,000 | ||
Accounts payable, accrued expenses and other liabilities | 187,631 | 198,467 | ||
Accrued distributions (Note 16) | 31,456 | 31,490 | ||
Deferred revenue and acquisition-related intangible liabilities, net (Notes 2 and 3) | 107,569 | 101,286 | ||
Rents received in advance and tenant security deposits | 43,952 | 44,240 | ||
Liabilities of real estate assets held for sale (Note 13) | 634 | 14,447 | ||
Total liabilities | 2,528,933 | 2,594,868 | ||
COMMITMENTS AND CONTINGENCIES (Note 10) | ' | ' | ||
Preferred stock, $.01 par value, 30,000,000 shares authorized: | ' | ' | ||
Common stock, $.01 par value, 150,000,000 shares authorized, 82,218,332 and 82,153,944 shares issued and outstanding, respectively | 822 | 822 | ||
Additional paid-in capital | 2,479,740 | 2,478,975 | ||
Distributions in excess of earnings | -143,636 | -210,896 | ||
Total stockholders’ equity | 2,529,337 | 2,461,312 | ||
Noncontrolling interest : | ' | ' | ||
Common units of the Operating Partnership (Note 6) | 51,388 | 49,963 | ||
Noncontrolling interest in consolidated subsidiary (Notes 1 and 6) | 4,885 | 4,885 | ||
Total noncontrolling interests | 56,273 | 54,848 | ||
Total equity | 2,585,610 | 2,516,160 | ||
TOTAL LIABILITIES AND EQUITY | 5,114,543 | 5,111,028 | ||
Series G Cumulative Redeemable Preferred Stock | ' | ' | ||
Preferred stock, $.01 par value, 30,000,000 shares authorized: | ' | ' | ||
Cumulative Redeemable Preferred stock | 96,155 | 96,155 | ||
Series H Cumulative Redeemable Preferred Stock | ' | ' | ||
Preferred stock, $.01 par value, 30,000,000 shares authorized: | ' | ' | ||
Cumulative Redeemable Preferred stock | $96,256 | $96,256 | ||
[1] | Amounts reported include the amounts of unamortized debt premiums and discounts for the periods presented. |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entity Consolidated Carrying Amounts, Real Estate Assets, net | $60,575,000 | $234,532,000 |
Common stock, par value | $0.01 | ' |
Common Stock [Member] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 82,218,332 | 82,153,944 |
Common stock, shares outstanding | 82,218,332 | 82,153,944 |
Preferred Stock [Member] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Series G Cumulative Redeemable Preferred Stock | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock dividend rate percentage | 6.88% | 6.88% |
Preferred stock, shares authorized | 4,600,000 | 4,600,000 |
Preferred stock, shares issued | 4,000,000 | 4,000,000 |
Preferred stock, shares outstanding | 4,000,000 | 4,000,000 |
Preferred Stock Liquidation preference | 100,000,000 | 100,000,000 |
Series H Cumulative Redeemable Preferred Stock | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock dividend rate percentage | 6.38% | 6.38% |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 4,000,000 | 4,000,000 |
Preferred stock, shares outstanding | 4,000,000 | 4,000,000 |
Preferred Stock Liquidation preference | $100,000,000 | $100,000,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUES: | ' | ' |
Rental income | $112,056 | $101,607 |
Tenant reimbursements | 11,572 | 9,130 |
Other property income (Note 12) | 2,157 | 227 |
Total revenues | 125,785 | 110,964 |
EXPENSES: | ' | ' |
Property expenses | 25,094 | 22,805 |
Real estate taxes | 11,173 | 9,664 |
Provision for bad debts | 0 | 95 |
Ground leases | 762 | 847 |
General and administrative expenses | 10,811 | 9,669 |
Acquisition-related expenses | 228 | 655 |
Depreciation and amortization | 49,202 | 47,701 |
Total expenses | 97,270 | 91,436 |
OTHER (EXPENSES) INCOME: | ' | ' |
Interest income and other net investment gains (Note 11) | 177 | 392 |
Interest expense (Note 5) | -17,252 | -19,734 |
Total other (expenses) income | -17,075 | -19,342 |
INCOME FROM CONTINUING OPERATIONS | 11,440 | 186 |
DISCONTINUED OPERATIONS (Note 13) | ' | ' |
Income from discontinued operations | 377 | 2,202 |
Net gain on dispositions of discontinued operations | 90,115 | 0 |
Total income from discontinued operations | 90,492 | 2,202 |
NET INCOME | 101,932 | 2,388 |
Net (income) loss attributable to noncontrolling common units of the Operating Partnership | -2,087 | 22 |
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION | 99,845 | 2,410 |
Preferred dividends | -3,313 | -3,313 |
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS | $96,532 | ($903) |
Income (loss) from continuing operations available to common stockholders per common share – basic (Note 14) | $0.09 | ($0.05) |
Income (loss) from continuing operations available to common stockholders per common share – diluted (Note 14) | $0.09 | ($0.05) |
Net income (loss) available to common stockholders per share – basic (Note 14) | $1.17 | ($0.02) |
Net income (loss) available to common stockholders per share – diluted (Note 14) | $1.14 | ($0.02) |
Weighted average common shares outstanding – basic (Note 14) | 82,124,538 | 74,977,240 |
Weighted average common shares outstanding – diluted (Note 14) | 84,140,070 | 74,977,240 |
Dividends declared per common share | $0.35 | $0.35 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (Unaudited) (USD $) | Total | Total Stockholders' Equity | Preferred Stock [Member] | Common Stock [Member] | Common Stock Additional Paid-in Capital | Common Stock Distributions in Excess of Earnings | Noncontrolling Interest [Member] | Kilroy Realty, L.P. [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||||
Beginning Balance at Dec. 31, 2012 | $2,235,933 | $2,189,630 | $192,411 | $749 | $2,126,005 | ($129,535) | $46,303 | ' |
Beginning Balance, shares at Dec. 31, 2012 | ' | ' | ' | 74,926,981 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 2,388 | 2,410 | ' | ' | ' | 2,410 | -22 | 2,388 |
Issuance of common stock, shares | ' | ' | ' | 453,679 | ' | ' | ' | ' |
Issuance of common stock | 23,395 | 23,395 | ' | 4 | 23,391 | ' | ' | ' |
Issuance of share-based compensation awards, shares | ' | ' | ' | 0 | ' | ' | ' | ' |
Issuance of share-based compensation awards | 336 | 336 | ' | ' | 336 | ' | ' | ' |
Noncash amortization of share-based compensation | 2,422 | 2,422 | ' | ' | 2,422 | ' | ' | 2,422 |
Repurchase of common stock and restricted stock units, shares | ' | ' | ' | -33,534 | ' | ' | ' | ' |
Repurchase of common stock and restricted stock units | -1,199 | -1,199 | ' | ' | -1,199 | ' | ' | ' |
Settlement of restricted stock units for shares of common stock, shares | ' | ' | ' | 2,579 | ' | ' | ' | ' |
Settlement of restricted stock units for shares of common stock | ' | ' | ' | ' | -10 | ' | ' | ' |
Settlement of restricted stock units for common stock value | -10 | -10 | ' | ' | ' | ' | ' | -10 |
Dividends, Preferred Stock | ' | ' | ' | ' | ' | 3,313 | ' | -3,313 |
Adjustment for noncontrolling interest | 0 | -1,893 | ' | ' | -1,893 | ' | 1,893 | ' |
Preferred dividends | -3,313 | -3,313 | ' | ' | ' | ' | ' | -3,313 |
Dividends declared per common share and common unit ($0.35 per share/unit) | -27,412 | -26,773 | ' | ' | ' | -26,773 | -639 | ' |
Ending Balance at Mar. 31, 2013 | 2,232,540 | 2,185,005 | 192,411 | 753 | 2,149,052 | -157,211 | 47,535 | ' |
Ending Balance, shares at Mar. 31, 2013 | ' | ' | ' | 75,349,705 | ' | ' | ' | ' |
Beginning Balance at Dec. 31, 2013 | 2,516,160 | 2,461,312 | 192,411 | 822 | 2,478,975 | -210,896 | 54,848 | ' |
Beginning Balance, shares at Dec. 31, 2013 | ' | ' | ' | 82,153,944 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 101,932 | 99,845 | ' | ' | ' | 99,845 | 2,087 | 101,932 |
Noncash amortization of share-based compensation | 2,233 | 2,233 | ' | ' | 2,233 | ' | ' | 2,233 |
Repurchase of common stock and restricted stock units, shares | ' | ' | ' | -26,074 | ' | ' | ' | ' |
Repurchase of common stock and restricted stock units | -1,517 | -1,517 | ' | ' | -1,517 | ' | ' | ' |
Settlement of restricted stock units for shares of common stock, shares | ' | ' | ' | 88,962 | ' | ' | ' | ' |
Settlement of restricted stock units for shares of common stock | ' | ' | ' | ' | 0 | ' | ' | ' |
Settlement of restricted stock units for common stock value | 0 | 0 | ' | ' | ' | ' | ' | 0 |
Exercise of stock options, net, units | ' | ' | ' | 1,000 | ' | ' | ' | ' |
Exercise of stock options, net | 21 | 21 | ' | ' | 21 | ' | ' | ' |
Exchange of common units of the Operating Parternship, shares | ' | ' | ' | 500 | ' | ' | ' | ' |
Exchange of common units of the Operating Partnership | ' | 28 | ' | ' | 28 | ' | -28 | ' |
Dividends, Preferred Stock | ' | ' | ' | ' | ' | 3,313 | ' | -3,313 |
Preferred dividends | -3,313 | -3,313 | ' | ' | ' | ' | ' | -3,313 |
Dividends declared per common share and common unit ($0.35 per share/unit) | -29,906 | -29,272 | ' | ' | ' | -29,272 | -634 | ' |
Ending Balance at Mar. 31, 2014 | $2,585,610 | $2,529,337 | $192,411 | $822 | $2,479,740 | ($143,636) | $56,273 | ' |
Ending Balance, shares at Mar. 31, 2014 | ' | ' | ' | 82,218,332 | ' | ' | ' | ' |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Dividends declared per common share | $0.35 | $0.35 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $101,932 | $2,388 |
Adjustments to reconcile net income to net cash provided by operating activities (including discontinued operations): | ' | ' |
Depreciation and amortization of building and improvements and leasing costs | 48,717 | 50,011 |
Increase in provision for bad debts | 0 | 95 |
Depreciation of furniture, fixtures and equipment | 485 | 380 |
Noncash amortization of share-based compensation awards | 2,502 | 2,234 |
Noncash amortization of deferred financing costs and debt discounts and premiums | 1,256 | 1,413 |
Noncash amortization of net below market rents (Note 3) | -1,734 | -2,047 |
Net gain on dispositions of discontinued operations (Note 13) | -90,115 | 0 |
Noncash amortization of deferred revenue related to tenant-funded tenant improvements | -2,353 | -2,442 |
Straight-line rents | -3,959 | -6,724 |
Net change in other operating assets | -5,949 | -7,390 |
Net change in other operating liabilities | -5,701 | 18,581 |
Net cash provided by operating activities | 45,081 | 56,499 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Expenditures for acquisition of operating properties (Note 2) | -106,125 | -85,692 |
Expenditures for operating properties | 32,016 | 25,571 |
Expenditures for development and redevelopment properties and undeveloped land | -73,626 | -73,369 |
Net proceeds received from dispositions of operating properties (Note 13) | 309,824 | 0 |
(Increase) decrease in restricted cash (Notes 1 and 13) | -779 | 228,079 |
Net cash provided by investing activities | 97,278 | 43,447 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net proceeds from issuance of common stock | 0 | 23,395 |
Borrowings on unsecured line of credit | 90,000 | 0 |
Repayments on unsecured line of credit | -135,000 | -185,000 |
Principal payments on secured debt | -2,414 | -84,918 |
Proceeds from the issuance of unsecured debt | 0 | 299,901 |
Financing costs | -418 | -2,870 |
Repurchase of common stock and restricted stock units | -1,517 | -1,209 |
Proceeds from exercise of stock options | 21 | 0 |
Dividends and distributions paid to common stockholders and common unitholders | -29,561 | -26,956 |
Dividends and distributions paid to preferred stockholders and preferred unitholders | -3,313 | -3,313 |
Net cash (used in) provided by financing activities | -82,202 | 19,030 |
Net increase in cash and cash equivalents | 60,157 | 118,976 |
Cash and cash equivalents, beginning of period | 35,377 | 16,700 |
Cash and cash equivalents, end of period | 95,534 | 135,676 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ' | ' |
Cash paid for interest, net of capitalized interest of $10,042 and $7,175 as of March 31, 2014 and 2013, respectively | 14,106 | 11,303 |
NONCASH INVESTING TRANSACTIONS: | ' | ' |
Accrual for expenditures for operating properties and development and redevelopment properties | 64,709 | 42,140 |
Tenant improvements funded directly by tenants | 4,470 | 1,426 |
Assumption of secured debt in connection with property acquisitions | 0 | 95,496 |
Assumption of other assets and liabilities in connection with operating and development property acquisitions, net | 0 | 422 |
NONCASH FINANCING TRANSACTIONS: | ' | ' |
Accrual of dividends and distributions payable to common stockholders and common unitholders | 29,906 | 27,011 |
Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders | 1,656 | 1,694 |
Grant date fair value of share-based compensation awards | 0 | 8,451 |
Exchange of common units of the Operating Partnership into shares of the Company’s common stock | $28 | $0 |
Consolidated_Balance_Sheets_KI
Consolidated Balance Sheets (KILROY REALTY, L.P.) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
REAL ESTATE ASSETS: | ' | ' | ||
Buildings and improvements (Note 2) | $3,706,662 | $3,590,699 | ||
Undeveloped land and construction in progress | 1,047,371 | 1,016,757 | ||
Total real estate held for investment | 5,434,024 | 5,264,947 | ||
Accumulated depreciation and amortization | -854,977 | -818,957 | ||
Total real estate assets held for investment, net ($60,575 and $234,532 of VIE, respectively, Note 1) | 4,579,047 | 4,445,990 | ||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET (Note 13) | 28,272 | 213,100 | ||
CASH AND CASH EQUIVALENTS | 95,534 | 35,377 | ||
RESTRICTED CASH (Notes 1 and 13) | 33,717 | 49,780 | ||
MARKETABLE SECURITIES (Note 11) | 11,001 | 10,008 | ||
CURRENT RECEIVABLES, NET (Note 4) | 11,092 | 10,743 | ||
DEFERRED RENT RECEIVABLES, NET (Note 4) | 130,750 | 127,123 | ||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET (Notes 2 and 3) | 188,466 | 186,622 | ||
DEFERRED FINANCING COSTS, NET | 15,195 | 16,502 | ||
PREPAID EXPENSES AND OTHER ASSETS, NET | 21,469 | 15,783 | ||
TOTAL ASSETS | 5,114,543 | 5,111,028 | ||
LIABILITIES: | ' | ' | ||
Secured debt (Notes 5 and 11) | 556,946 | [1] | 560,434 | [1] |
Exchangeable senior notes, net (Notes 5 and 11) | 169,528 | 168,372 | ||
Unsecured debt, net (Notes 5 and 11) | 1,431,217 | 1,431,132 | ||
Unsecured line of credit (Notes 5 and 11) | 0 | 45,000 | ||
Accounts payable, accrued expenses and other liabilities | 187,631 | 198,467 | ||
Accrued distributions (Note 16) | 31,456 | 31,490 | ||
Deferred revenue and acquisition-related intangible liabilities, net (Notes 2 and 3) | 107,569 | 101,286 | ||
Liabilities of real estate assets held for sale (Note 13) | 634 | 14,447 | ||
Total liabilities | 2,528,933 | 2,594,868 | ||
COMMITMENTS AND CONTINGENCIES (Note 10) | ' | ' | ||
Partners' Capital (Note 8): | ' | ' | ||
TOTAL LIABILITIES AND EQUITY | 5,114,543 | 5,111,028 | ||
Kilroy Realty, L.P. [Member] | ' | ' | ||
REAL ESTATE ASSETS: | ' | ' | ||
Land and improvements (Note 2) | 679,991 | 657,491 | ||
Buildings and improvements (Note 2) | 3,706,662 | 3,590,699 | ||
Undeveloped land and construction in progress | 1,047,371 | 1,016,757 | ||
Total real estate held for investment | 5,434,024 | 5,264,947 | ||
Accumulated depreciation and amortization | -854,977 | -818,957 | ||
Total real estate assets held for investment, net ($60,575 and $234,532 of VIE, respectively, Note 1) | 4,579,047 | 4,445,990 | ||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET (Note 13) | 28,272 | 213,100 | ||
CASH AND CASH EQUIVALENTS | 95,534 | 35,377 | ||
RESTRICTED CASH (Notes 1 and 13) | 33,717 | 49,780 | ||
MARKETABLE SECURITIES (Note 11) | 11,001 | 10,008 | ||
CURRENT RECEIVABLES, NET (Note 4) | 11,092 | 10,743 | ||
DEFERRED RENT RECEIVABLES, NET (Note 4) | 130,750 | 127,123 | ||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET (Notes 2 and 3) | 188,466 | 186,622 | ||
DEFERRED FINANCING COSTS, NET | 15,195 | 16,502 | ||
PREPAID EXPENSES AND OTHER ASSETS, NET | 21,469 | 15,783 | ||
TOTAL ASSETS | 5,114,543 | 5,111,028 | ||
LIABILITIES: | ' | ' | ||
Secured debt (Notes 5 and 11) | 556,946 | 560,434 | ||
Exchangeable senior notes, net (Notes 5 and 11) | 169,528 | 168,372 | ||
Unsecured debt, net (Notes 5 and 11) | 1,431,217 | 1,431,132 | ||
Unsecured line of credit (Notes 5 and 11) | 0 | 45,000 | ||
Accounts payable, accrued expenses and other liabilities | 187,631 | 198,467 | ||
Accrued distributions (Note 16) | 31,456 | 31,490 | ||
Deferred revenue and acquisition-related intangible liabilities, net (Notes 2 and 3) | 107,569 | 101,286 | ||
Rents received in advance and tenant security deposits | 43,952 | 44,240 | ||
Liabilities of real estate assets held for sale (Note 13) | 634 | 14,447 | ||
Total liabilities | 2,528,933 | 2,594,868 | ||
Partners' Capital (Note 8): | ' | ' | ||
Common units, 82,113,491 and 74,926,981 held by the general partner and 1,821,503 and 1,826,503 held by common limited partners issued and outstanding, respectively | 2,384,746 | 2,315,361 | ||
Total partners' capital | 2,577,157 | 2,507,772 | ||
Noncontrolling interest in consolidated subsidiaries (Notes 2 and 6) | 8,453 | 8,388 | ||
Total capital | 2,585,610 | 2,516,160 | ||
TOTAL LIABILITIES AND EQUITY | 5,114,543 | 5,111,028 | ||
Series G Cumulative Redeemable Preferred Unit [Member] | Kilroy Realty, L.P. [Member] | ' | ' | ||
Partners' Capital (Note 8): | ' | ' | ||
Redeemable Preferred stock | 96,155 | 96,155 | ||
Series H Cumulative Redeemable Preferred Unit [Member] | Kilroy Realty, L.P. [Member] | ' | ' | ||
Partners' Capital (Note 8): | ' | ' | ||
Redeemable Preferred stock | $96,256 | $96,256 | ||
[1] | Amounts reported include the amounts of unamortized debt premiums and discounts for the periods presented. |
Consolidated_Balance_Sheets_KI1
Consolidated Balance Sheets (KILROY REALTY, L.P.) (Parenthetical) (Kilroy Realty, L.P. [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Common Units [Member] | Common Units [Member] | Series G Cumulative Redeemable Preferred Unit [Member] | Series G Cumulative Redeemable Preferred Unit [Member] | Series H Cumulative Redeemable Preferred Unit [Member] | Series H Cumulative Redeemable Preferred Unit [Member] | |||
Variable Interest Entity Consolidated Carrying Amounts, Real Estate Assets, net | $60,575,000 | $234,532,000 | ' | ' | ' | ' | ' | ' |
Preferred Units, Issued | ' | ' | ' | ' | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 |
Preferred Units, Outstanding | ' | ' | ' | ' | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 |
Preferred stock dividend rate percentage | ' | ' | ' | ' | 6.88% | 6.88% | 6.38% | 6.38% |
Preferred Stock Liquidation preference | ' | ' | ' | ' | $100,000,000 | $100,000,000 | $100,000,000 | $100,000,000 |
General partner, units issued | ' | ' | 82,218,332 | 82,153,944 | ' | ' | ' | ' |
General partners, units outstanding | ' | ' | 82,218,332 | 82,153,944 | ' | ' | ' | ' |
Limited partners, units issued | ' | ' | 1,804,200 | 1,805,200 | ' | ' | ' | ' |
Common units held by limited partners | ' | ' | 1,804,200 | 1,805,200 | ' | ' | ' | ' |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (KILROY REALTY, L.P.) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUES: | ' | ' |
Rental income | $112,056 | $101,607 |
Tenant reimbursements | 11,572 | 9,130 |
Other property income (Note 12) | 2,157 | 227 |
Total revenues | 125,785 | 110,964 |
EXPENSES: | ' | ' |
Property expenses | 25,094 | 22,805 |
Real estate taxes | 11,173 | 9,664 |
Provision for bad debts | 0 | 95 |
Ground leases | 762 | 847 |
General and administrative expenses | 10,811 | 9,669 |
Acquisition-related expenses | 228 | 655 |
Depreciation and amortization | 49,202 | 47,701 |
Total expenses | 97,270 | 91,436 |
OTHER (EXPENSES) INCOME: | ' | ' |
Interest income and other net investment gains (Note 11) | 177 | 392 |
Interest expense (Note 5) | -17,252 | -19,734 |
Total other (expenses) income | -17,075 | -19,342 |
INCOME FROM CONTINUING OPERATIONS | 11,440 | 186 |
DISCONTINUED OPERATIONS (Note 13) | ' | ' |
Income from discontinued operations | 377 | 2,202 |
Net gain on dispositions of discontinued operations | 90,115 | 0 |
Total income from discontinued operations | 90,492 | 2,202 |
NET INCOME | 101,932 | 2,388 |
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION | 99,845 | 2,410 |
Preferred dividends | -3,313 | -3,313 |
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS | 96,532 | -903 |
Income (loss) from continuing operations available to common unitholders per common unit - basic (Note 15) | $0.09 | ($0.05) |
Income (loss) from continuing operations available to common unitholders per common unit - diluted (Note 15) | $0.09 | ($0.05) |
Net income (loss) available to common unitholders per unit-basic (Note 14) | $1.17 | ($0.02) |
Net income (loss) available to common unitholders per unit-diluted (Note 14) | $1.14 | ($0.02) |
Weighted average common units outstanding - basic (Note 14) | 82,124,538 | 74,977,240 |
Weighted average common units outstanding - diluted (Note 14) | 84,140,070 | 74,977,240 |
Kilroy Realty, L.P. [Member] | ' | ' |
REVENUES: | ' | ' |
Rental income | 112,056 | 101,607 |
Tenant reimbursements | 11,572 | 9,130 |
Other property income (Note 12) | 2,157 | 227 |
Total revenues | 125,785 | 110,964 |
EXPENSES: | ' | ' |
Property expenses | 25,094 | 22,805 |
Real estate taxes | 11,173 | 9,664 |
Provision for bad debts | 0 | 95 |
Ground leases | 762 | 847 |
General and administrative expenses | 10,811 | 9,669 |
Acquisition-related expenses | 228 | 655 |
Depreciation and amortization | 49,202 | 47,701 |
Total expenses | 97,270 | 91,436 |
OTHER (EXPENSES) INCOME: | ' | ' |
Interest income and other net investment gains (Note 11) | 177 | 392 |
Interest expense (Note 5) | -17,252 | -19,734 |
Total other (expenses) income | -17,075 | -19,342 |
INCOME FROM CONTINUING OPERATIONS | 11,440 | 186 |
DISCONTINUED OPERATIONS (Note 13) | ' | ' |
Income from discontinued operations | 377 | 2,202 |
Net gain on dispositions of discontinued operations | 90,115 | 0 |
Total income from discontinued operations | 90,492 | 2,202 |
NET INCOME | 101,932 | 2,388 |
Net income attributable to noncontrolling interests in consolidated subsidiaries | -65 | -69 |
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION | 101,867 | 2,319 |
Preferred dividends | -3,313 | -3,313 |
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS | $98,554 | ($994) |
Income (loss) from continuing operations available to common unitholders per common unit - basic (Note 15) | $0.09 | ($0.05) |
Income (loss) from continuing operations available to common unitholders per common unit - diluted (Note 15) | $0.09 | ($0.05) |
Net income (loss) available to common unitholders per unit-basic (Note 14) | $1.17 | ($0.02) |
Net income (loss) available to common unitholders per unit-diluted (Note 14) | $1.14 | ($0.02) |
Weighted average common units outstanding - basic (Note 14) | 83,928,993 | 76,803,743 |
Weighted average common units outstanding - diluted (Note 14) | 85,944,525 | 76,803,743 |
Dividends declared per common unit | $0.35 | $0.35 |
Consolidated_Statements_of_Cap
Consolidated Statements of Capital (KILROY REALTY, L.P.) (Kilroy Realty, L.P. [Member], USD $) | 3 Months Ended | 3 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Total Partners Capital [Member] | Total Partners Capital [Member] | Partners Capital Preferred Units [Member] | Partners Capital Preferred Units [Member] | Partners Capital Preferred Units [Member] | Partners Capital Preferred Units [Member] | Partners Capital Common Unit [Member] | Partners Capital Common Unit [Member] | Noncontrolling Interest In Consolidated Subsidiaries [Member] | Noncontrolling Interest In Consolidated Subsidiaries [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | $2,516,160 | $2,235,933 | $2,507,772 | $2,232,654 | $192,411 | $192,411 | $192,411 | $192,411 | $2,315,361 | $2,040,243 | $8,388 | $3,279 |
Beginning Balance units | ' | ' | ' | ' | ' | ' | ' | ' | 83,959,144 | 76,753,484 | ' | ' |
Net income | 101,932 | 2,388 | 101,867 | 2,319 | ' | ' | ' | ' | 101,867 | 2,319 | 65 | 69 |
Issuance of common units | ' | ' | ' | ' | ' | ' | ' | ' | ' | 453,679 | ' | ' |
Issuance of common units | ' | 23,395 | ' | 23,395 | ' | ' | ' | ' | ' | 23,395 | ' | ' |
Issuance of share-based compensation awards, units | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Partners' Capital Account, Unit-based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 336 | ' | ' |
Issuance of share-based compensation awards | ' | 336 | ' | 336 | ' | ' | ' | ' | ' | ' | ' | ' |
Noncash amortization of share-based compensation | 2,233 | 2,422 | 2,233 | 2,422 | ' | ' | ' | ' | 2,233 | 2,422 | ' | ' |
Repurchase of common units and restricted stock units, shares | ' | ' | ' | ' | ' | ' | ' | ' | -26,074 | -33,534 | ' | ' |
Repurchase of common units and restricted stock units | -1,517 | 1,199 | -1,517 | -1,199 | ' | ' | ' | ' | -1,517 | -1,199 | ' | ' |
Settlement of restricted stock units, shares | ' | ' | ' | ' | ' | ' | ' | ' | 88,962 | 2,579 | ' | ' |
Settlement of restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -10 | ' | ' |
Settlement of restricted stock units | 0 | -10 | 0 | -10 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options, net, units | ' | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' |
Exercise of stock options, net | 21 | ' | 21 | ' | ' | ' | ' | ' | 21 | ' | ' | ' |
Dividends, Preferred Stock | -3,313 | -3,313 | -3,313 | -3,313 | ' | ' | ' | ' | -3,313 | -3,313 | ' | ' |
Partners' Capital Account, Distributions | ' | ' | ' | ' | ' | ' | ' | ' | -29,906 | -27,412 | ' | ' |
Distributions declared per common unit ($1.05 per unit) | -29,906 | -27,412 | -29,906 | -27,412 | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance | $2,585,610 | $2,232,540 | $2,577,157 | $2,229,192 | $192,411 | $192,411 | $192,411 | $192,411 | $2,384,746 | $2,036,781 | $8,453 | $3,348 |
Ending Balance units | ' | ' | ' | ' | ' | ' | ' | ' | 84,022,532 | 77,176,208 | ' | ' |
Consolidated_Statements_of_Cap1
Consolidated Statements of Capital (KILROY REALTY, L.P.) (Parenthetical) (Kilroy Realty, L.P. [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Kilroy Realty, L.P. [Member] | ' | ' |
Distributions Per Limited Partnership and General Partnership Unit, Outstanding, Basic | $0.35 | $0.35 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (KILROY REALTY, L.P.) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $101,932 | $2,388 |
Adjustments to reconcile net income to net cash provided by operating activities (including discontinued operations): | ' | ' |
Depreciation and amortization of building and improvements and leasing costs | 48,717 | 50,011 |
Increase in provision for bad debts | 0 | 95 |
Depreciation of furniture, fixtures and equipment | 485 | 380 |
Noncash amortization of share-based compensation awards | 2,502 | 2,234 |
Noncash amortization of deferred financing costs and debt discounts and premiums | 1,256 | 1,413 |
Noncash amortization of net below market rents (Note 3) | -1,734 | -2,047 |
Net gain on dispositions of discontinued operations (Note 13) | -90,115 | 0 |
Noncash amortization of deferred revenue related to tenant-funded tenant improvements | -2,353 | -2,442 |
Straight-line rents | -3,959 | -6,724 |
Net change in other operating assets | -5,949 | -7,390 |
Net change in other operating liabilities | -5,701 | 18,581 |
Net cash provided by operating activities | 45,081 | 56,499 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Expenditures for acquisition of operating properties (Note 2) | -106,125 | -85,692 |
Expenditures for operating properties | -32,016 | -25,571 |
Expenditures for development and redevelopment properties and undeveloped land | -73,626 | -73,369 |
Net proceeds received from dispositions of operating properties (Note 13) | 309,824 | 0 |
(Increase) decrease in restricted cash (Notes 1 and 13) | -779 | 228,079 |
Net cash provided by investing activities | 97,278 | 43,447 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Borrowings on unsecured line of credit | 90,000 | 0 |
Repayments on unsecured line of credit | -135,000 | -185,000 |
Principal payments on secured debt | -2,414 | -84,918 |
Proceeds from the issuance of unsecured debt | 0 | 299,901 |
Financing costs | -418 | -2,870 |
Repurchase of common stock and restricted stock units | -1,517 | -1,209 |
Proceeds from exercise of stock options | 21 | 0 |
Distributions paid to common unitholders | -29,561 | -26,956 |
Distributions paid to preferred unitholders | -3,313 | -3,313 |
Net cash (used in) provided by financing activities | -82,202 | 19,030 |
Net increase in cash and cash equivalents | 60,157 | 118,976 |
Cash and cash equivalents, beginning of period | 35,377 | 16,700 |
Cash and cash equivalents, end of period | 95,534 | 135,676 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ' | ' |
Cash paid for interest, net of capitalized interest of $10,042 and $7,175 as of March 31, 2014 and 2013, respectively | 14,106 | 11,303 |
NONCASH INVESTING TRANSACTIONS: | ' | ' |
Accrual for expenditures for operating properties and development and redevelopment properties | 64,709 | 42,140 |
Tenant improvements funded directly by tenants | 4,470 | 1,426 |
Assumption of secured debt in connection with property acquisitions | 0 | 95,496 |
Assumption of other assets and liabilities in connection with operating and development property acquisitions, net | 0 | 422 |
NONCASH FINANCING TRANSACTIONS: | ' | ' |
Accrual of distributions payable to common unitholders | 29,906 | 27,011 |
Accrual of distributions payable to preferred unitholders | 1,656 | 1,694 |
Grant date fair value of share-based compensation awards | 0 | 8,451 |
Kilroy Realty, L.P. [Member] | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | 101,932 | 2,388 |
Adjustments to reconcile net income to net cash provided by operating activities (including discontinued operations): | ' | ' |
Depreciation and amortization of building and improvements and leasing costs | 48,717 | 50,011 |
Increase in provision for bad debts | 0 | 95 |
Depreciation of furniture, fixtures and equipment | 485 | 380 |
Noncash amortization of share-based compensation awards | 2,502 | 2,234 |
Noncash amortization of deferred financing costs and debt discounts and premiums | 1,256 | 1,413 |
Noncash amortization of net below market rents (Note 3) | -1,734 | -2,047 |
Net gain on dispositions of discontinued operations (Note 13) | -90,115 | 0 |
Noncash amortization of deferred revenue related to tenant-funded tenant improvements | -2,353 | -2,442 |
Straight-line rents | -3,959 | -6,724 |
Net change in other operating assets | -5,949 | -7,390 |
Net change in other operating liabilities | -5,701 | 18,581 |
Net cash provided by operating activities | 45,081 | 56,499 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Expenditures for acquisition of operating properties (Note 2) | -106,125 | -85,692 |
Expenditures for operating properties | -32,016 | -25,571 |
Expenditures for development and redevelopment properties and undeveloped land | -73,626 | -73,369 |
Net proceeds received from dispositions of operating properties (Note 13) | 309,824 | 0 |
(Increase) decrease in restricted cash (Notes 1 and 13) | -779 | 228,079 |
Net cash provided by investing activities | 97,278 | 43,447 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from Issuance of common units | 0 | 23,395 |
Borrowings on unsecured line of credit | 90,000 | 0 |
Repayments on unsecured line of credit | -135,000 | -185,000 |
Principal payments on secured debt | -2,414 | -84,918 |
Proceeds from the issuance of unsecured debt | 0 | 299,901 |
Financing costs | -418 | -2,870 |
Repurchase of common stock and restricted stock units | -1,517 | -1,209 |
Proceeds from exercise of stock options | 21 | 0 |
Distributions paid to common unitholders | -29,561 | -26,956 |
Distributions paid to preferred unitholders | -3,313 | -3,313 |
Net cash (used in) provided by financing activities | -82,202 | 19,030 |
Net increase in cash and cash equivalents | 60,157 | 118,976 |
Cash and cash equivalents, beginning of period | 35,377 | 16,700 |
Cash and cash equivalents, end of period | 95,534 | 135,676 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ' | ' |
Cash paid for interest, net of capitalized interest of $10,042 and $7,175 as of March 31, 2014 and 2013, respectively | 14,106 | 11,303 |
NONCASH INVESTING TRANSACTIONS: | ' | ' |
Accrual for expenditures for operating properties and development and redevelopment properties | 64,709 | 42,140 |
Tenant improvements funded directly by tenants | 4,470 | 1,426 |
Assumption of secured debt in connection with property acquisitions | 0 | 95,496 |
Assumption of other assets and liabilities in connection with operating and development property acquisitions, net | 0 | 422 |
NONCASH FINANCING TRANSACTIONS: | ' | ' |
Accrual of distributions payable to common unitholders | 29,906 | 27,011 |
Accrual of distributions payable to preferred unitholders | 1,656 | 1,694 |
Grant date fair value of share-based compensation awards | $0 | $8,451 |
Consolidated_Statements_of_Cas2
Consolidated Statements of Cash Fiows (Kilroy Realty, L.P.) (Parenthetical) (Kilroy Realty, L.P. [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Kilroy Realty, L.P. [Member] | ' | ' |
Interest Paid, Capitalized | $10,042 | $7,175 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Organization and Basis of Presentation | ' | |||||||||||
Organization and Basis of Presentation | ||||||||||||
Organization | ||||||||||||
Kilroy Realty Corporation (the “Company”) is a self-administered real estate investment trust (“REIT”) active in premier office submarkets along the West Coast. We own, develop, acquire and manage real estate assets, consisting primarily of Class A properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and greater Seattle, which we believe have strategic advantages and strong barriers to entry. Class A real estate encompasses attractive and efficient buildings of high quality that are attractive to tenants, are well-designed and constructed with above-average material, workmanship and finishes and are well-maintained and managed. We qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). The Company’s common stock is publicly traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “KRC.” | ||||||||||||
We own our interests in all of our real estate assets through Kilroy Realty, L.P. (the “Operating Partnership”) and Kilroy Realty Finance Partnership, L.P. (the “Finance Partnership”). We conduct substantially all of our operations through the Operating Partnership. Unless stated otherwise or the context indicates otherwise, the terms “Kilroy Realty Corporation” or the “Company,” “we,” “our,” and “us” refer to Kilroy Realty Corporation and its consolidated subsidiaries and the term “Operating Partnership” refers to Kilroy Realty, L.P. and its consolidated subsidiaries. The descriptions of our business, employees, and properties apply to both the Company and the Operating Partnership. | ||||||||||||
Our stabilized portfolio of operating properties was comprised of the following office properties at March 31, 2014: | ||||||||||||
Number of | Rentable | Number of | Percentage | |||||||||
Buildings | Square Feet | Tenants | Occupied | |||||||||
Stabilized Office Properties | 107 | 13,305,145 | 527 | 92.4 | % | |||||||
Our stabilized portfolio includes all of our properties with the exception of real estate assets held for sale, undeveloped land, development and redevelopment properties currently under construction or committed for construction, and “lease-up” properties. We define redevelopment properties as those properties for which we expect to spend significant development and construction costs on the existing or acquired buildings pursuant to a formal plan, the intended result of which is a higher economic return on the property. We define “lease-up” properties as properties we recently developed or redeveloped that have not yet reached 95% occupancy and are within one year following cessation of major construction activities. During the first quarter of 2014, we stabilized a redevelopment property in San Francisco, California. As a result, this property is included in our stabilized portfolio as of March 31, 2014. | ||||||||||||
As of March 31, 2014, the following properties were excluded from our stabilized portfolio: | ||||||||||||
Number of Properties | Estimated Rentable | |||||||||||
Square Feet | ||||||||||||
Development properties under construction (1) | 6 | 2,538,000 | ||||||||||
_______________ | ||||||||||||
-1 | Estimated rentable square feet upon completion. | |||||||||||
As of March 31, 2014, all of our properties and development and redevelopment projects and all of our business was conducted in the state of California with the exception of thirteen office properties located in the state of Washington. All of our properties and development and redevelopment projects are 100% owned, excluding a development project owned by Redwood City Partners, LLC, a consolidated subsidiary (see Note 6) and certain properties held in connection with potential like-kind exchanges pursuant to Section 1031 of the Code (“Section 1031 Exchanges”) to defer taxable gains on dispositions for federal and state income tax purposes that have been consolidated for financial reporting purposes. | ||||||||||||
As of March 31, 2014, the Company owned a 97.9% common general partnership interest in the Operating Partnership. The remaining 2.1% common limited partnership interest in the Operating Partnership as of March 31, 2014 was owned by non-affiliated investors and certain of our executive officers and directors (see Note 6). Both the general and limited common partnership interests in the Operating Partnership are denominated in common units. The number of common units held by the Company is at all times equivalent to the number of outstanding shares of the Company’s common stock, and the rights of all the common units to quarterly distributions and payments in liquidation mirror those of the Company’s common stockholders. The common limited partners have certain redemption rights as provided in the Operating Partnership’s Seventh Amended and Restated Agreement of Limited Partnership, as amended, the “Partnership Agreement”) (see Note 6). | ||||||||||||
Kilroy Realty Finance, Inc., which is a wholly owned subsidiary of the Company, is the sole general partner of the Finance Partnership and owns a 1.0% common general partnership interest in the Finance Partnership. The Operating Partnership owns the remaining 99.0% common limited partnership interest. Kilroy Services, LLC (“KSLLC”), which is a wholly owned subsidiary of the Operating Partnership, is the entity through which we conduct substantially all of our development activities. With the exception of the Operating Partnership and Redwood City Partners, LLC, all of our subsidiaries are wholly owned. | ||||||||||||
Basis of Presentation | ||||||||||||
The consolidated financial statements of the Company include the consolidated financial position and results of operations of the Company, the Operating Partnership, the Finance Partnership, KSLLC, Redwood City Partners, LLC and all of our wholly owned and controlled subsidiaries. The consolidated financial statements of the Operating Partnership include the consolidated financial position and results of operations of the Operating Partnership, the Finance Partnership, KSLLC, Redwood City Partners, LLC and all wholly-owned and controlled subsidiaries of the Operating Partnership. All intercompany balances and transactions have been eliminated in the consolidated financial statements. | ||||||||||||
The accompanying interim financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The interim financial statements for the Company and the Operating Partnership should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2013. | ||||||||||||
Certain amounts in the consolidated statements of operations for prior periods have been reclassified to reflect the activity of discontinued operations. | ||||||||||||
Variable Interest Entities | ||||||||||||
At March 31, 2014, the consolidated financial statements of the Company and the Operating Partnership included one variable interest entity (“VIE”), Redwood City Partners, LLC, in which we were deemed to be the primary beneficiary. This VIE was established in the second quarter of 2013 in connection with an undeveloped land acquisition. The impact of consolidating the VIE increased the Company’s total assets, liabilities and noncontrolling interests by approximately $61.6 million (of which $60.6 million related to real estate held for investment on our consolidated balance sheet), approximately $6.8 million and approximately $4.9 million, respectively, as of March 31, 2014. As of December 31, 2013, the consolidated financial statements of the Company and the Operating Partnership included four VIEs, in which we were deemed to be the primary beneficiary. One of the VIEs was Redwood City Partners, LLC and the remaining three VIEs were established during the third and fourth quarter of 2013 to facilitate a potential Section 1031 Exchange. During the three months ended March 31, 2014, the Section 1031 Exchanges were successfully completed and the three VIEs were terminated. As a result, $32.2 million of our restricted cash balance at December 31, 2013, which related to prior period disposition proceeds that were set aside to facilitate the Section 1031 Exchanges, was released from escrow. The impact of consolidating the VIEs increased the Company’s total assets, liabilities and noncontrolling interests by approximately $251.8 million (of which $234.5 million related to real estate held for investment on our consolidated balance sheet), approximately $12.1 million and approximately $4.9 million, respectively, as of December 31, 2013. | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||
On April 10, 2014, the Financial Accounting Standards Board issued final guidance to change the criteria for reporting discontinued operations while enhancing disclosures in this area (Accounting Standards Update (“ASU”) No. 2014-08). Under the new guidance, only disposals representing a strategic shift, such as a major line of business, a major geographical area or a major equity investment, should be presented as discontinued operations. The guidance will be applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The guidance is effective for annual financial statements with fiscal years beginning on or after December 15, 2014 with early adoption permitted for disposals or classifications as held for sale which have not been reported in financial statements previously issued or available for issuance. The Company will adopt the guidance effective January 1, 2015 and the guidance is not anticipated to have a material impact on our consolidated financial statements and notes to our consolidated financial statements. | ||||||||||||
On March 13, 2014, the Emerging Issues Task Force (the “Task Force”) reached a final consensus to amend the accounting guidance for stock compensation tied to performance targets (Issue No. 13-D). The objective of this guidance is to clarify the accounting treatment of certain types of performance conditions in stock-based compensation awards, more specifically, when performance targets can be achieved after the requisite service period. The Task Force concluded that performance criteria subsequent to a service period vesting requirement should be treated as vesting conditions, and as a result, this type of performance condition may delay expense recognition until achievement of the performance target is probable. Issue No. 13-D will be effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015, and early adoption is permitted. The adoption of this guidance is not anticipated to have a material impact on our consolidated financial statements or notes to our consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||
Acquisitions | ' | |||||||||||||
Acquisitions | ||||||||||||||
Operating Properties | ||||||||||||||
During the three months ended March 31, 2014, we acquired the one operating office property, listed below, from an unrelated third party. The acquisition was funded with proceeds from the 2013 and 2014 dispositions (see Note 13). | ||||||||||||||
Property | Date of Acquisition | Number of | Rentable Square | Occupancy as of March 31, 2014 | Purchase | |||||||||
Buildings | Feet | Price | ||||||||||||
(in millions) | ||||||||||||||
401 Terry Avenue North, Seattle, WA | March 13, 2014 | 1 | 140,605 | 100.00% | $ | 106.1 | ||||||||
The related assets, liabilities and results of operations of the acquired property are included in the consolidated financial statements as of the date of acquisition. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed on the acquisition date: | ||||||||||||||
Total 2014 | ||||||||||||||
Acquisitions | ||||||||||||||
(in thousands) | ||||||||||||||
Assets | ||||||||||||||
Land and improvements | $ | 22,500 | ||||||||||||
Buildings and improvements (1) | 77,046 | |||||||||||||
Deferred leasing costs and acquisition-related intangible assets (2) | 11,199 | |||||||||||||
Total assets acquired | 110,745 | |||||||||||||
Liabilities | ||||||||||||||
Deferred revenue and acquisition-related intangible liabilities (3) | 4,620 | |||||||||||||
Total liabilities assumed | 4,620 | |||||||||||||
Net assets and liabilities acquired | $ | 106,125 | ||||||||||||
_______________ | ||||||||||||||
-1 | Represents buildings, building improvements and tenant improvements. | |||||||||||||
-2 | Represents in-place leases of approximately $9.3 million (with a weighted average amortization period of seven years) and leasing commissions of approximately $1.9 million (with a weighted average amortization period of seven years). | |||||||||||||
-3 | Represents below-market leases of approximately $4.6 million (with a weighted average amortization period of seven years). |
Deferred_Leasing_Costs_and_Acq
Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Intangible Assets and Liabilities Disclosure [Abstract] | ' | |||||||||||||||||||||||
deferred Leasing Costs and Acquisition-Related Intangible Assets and Liabilities, net | ' | |||||||||||||||||||||||
Deferred Leasing Costs and Acquisition-Related Intangible Assets and Liabilities, net | ||||||||||||||||||||||||
The following table summarizes our deferred leasing costs and acquisition-related intangible assets (acquired value of leasing costs, above-market operating leases, in-place leases and below-market ground lease obligation) and intangible liabilities (acquired value of below-market operating leases and above-market ground lease obligation) as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Deferred Leasing Costs and Acquisition-Related Intangible Assets, net: | ||||||||||||||||||||||||
Deferred leasing costs | $ | 183,813 | $ | 178,720 | ||||||||||||||||||||
Accumulated amortization | (68,152 | ) | (63,246 | ) | ||||||||||||||||||||
Deferred leasing costs, net | 115,661 | 115,474 | ||||||||||||||||||||||
Above-market operating leases | 27,351 | 27,635 | ||||||||||||||||||||||
Accumulated amortization | (15,489 | ) | (14,283 | ) | ||||||||||||||||||||
Above-market operating leases, net | 11,862 | 13,352 | ||||||||||||||||||||||
In-place leases | 104,643 | 100,318 | ||||||||||||||||||||||
Accumulated amortization | (44,175 | ) | (42,999 | ) | ||||||||||||||||||||
In-place leases, net | 60,468 | 57,319 | ||||||||||||||||||||||
Below-market ground lease obligation | 490 | 490 | ||||||||||||||||||||||
Accumulated amortization | (15 | ) | (13 | ) | ||||||||||||||||||||
Below-market ground lease obligation, net | 475 | 477 | ||||||||||||||||||||||
Total deferred leasing costs and acquisition-related intangible assets, net | $ | 188,466 | $ | 186,622 | ||||||||||||||||||||
Acquisition-Related Intangible Liabilities, net: (1) | ||||||||||||||||||||||||
Below-market operating leases | $ | 73,522 | $ | 69,385 | ||||||||||||||||||||
Accumulated amortization | (28,316 | ) | (25,706 | ) | ||||||||||||||||||||
Below-market operating leases, net | 45,206 | 43,679 | ||||||||||||||||||||||
Above-market ground lease obligation | 6,320 | 6,320 | ||||||||||||||||||||||
Accumulated amortization | (248 | ) | (223 | ) | ||||||||||||||||||||
Above-market ground lease obligation, net | 6,072 | 6,097 | ||||||||||||||||||||||
Total acquisition-related intangible liabilities, net | $ | 51,278 | $ | 49,776 | ||||||||||||||||||||
_______________ | ||||||||||||||||||||||||
-1 | Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets. | |||||||||||||||||||||||
The following table sets forth amortization related to deferred leasing costs and acquisition-related intangibles, including amounts attributable to discontinued operations, for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Deferred leasing costs (1) | $ | 6,780 | $ | 7,844 | ||||||||||||||||||||
Above-market operating leases (2) | 1,490 | 1,438 | ||||||||||||||||||||||
In-place leases (1) | 6,136 | 7,458 | ||||||||||||||||||||||
Below-market ground lease obligation (3) | — | 2 | ||||||||||||||||||||||
Below-market operating leases (4) | (3,093 | ) | (3,485 | ) | ||||||||||||||||||||
Above-market ground lease obligation (5) | (25 | ) | (25 | ) | ||||||||||||||||||||
Total | $ | 11,288 | $ | 13,232 | ||||||||||||||||||||
_______________ | ||||||||||||||||||||||||
-1 | The amortization of deferred leasing costs related to lease incentives is recorded to rental income and other deferred leasing costs and in-place leases is recorded to depreciation and amortization expense in the consolidated statements of operations for the periods presented. | |||||||||||||||||||||||
-2 | The amortization of above-market operating leases is recorded as a decrease to rental income in the consolidated statements of operations for the periods presented. | |||||||||||||||||||||||
-3 | The amortization of the below-market ground lease obligation is recorded as an increase to ground lease expense in the consolidated statements of operations for the periods presented. | |||||||||||||||||||||||
-4 | The amortization of below-market operating leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented. | |||||||||||||||||||||||
-5 | The amortization of the above-market ground lease obligation is recorded as a decrease to ground lease expense in the consolidated statements of operations for the periods presented. | |||||||||||||||||||||||
The following table sets forth the estimated annual amortization expense related to deferred leasing costs and acquisition-related intangibles as of March 31, 2014 for future periods: | ||||||||||||||||||||||||
Year | Deferred Leasing Costs | Above-Market Operating Leases (1) | In-Place Leases | Below-Market Ground Lease Obligation (2) | Below-Market Operating Leases (3) | Above-Market Ground Lease Obligation (4) | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Remaining 2014 | $ | 20,006 | $ | 3,830 | $ | 15,274 | $ | 6 | $ | (9,802 | ) | $ | (76 | ) | ||||||||||
2015 | 22,162 | 2,918 | 13,562 | 8 | (9,577 | ) | (101 | ) | ||||||||||||||||
2016 | 19,351 | 1,891 | 10,475 | 8 | (7,847 | ) | (101 | ) | ||||||||||||||||
2017 | 16,742 | 1,573 | 8,774 | 8 | (6,780 | ) | (101 | ) | ||||||||||||||||
2018 | 13,416 | 973 | 5,689 | 8 | (5,177 | ) | (101 | ) | ||||||||||||||||
Thereafter | 23,984 | 677 | 6,694 | 437 | (6,023 | ) | (5,592 | ) | ||||||||||||||||
Total | $ | 115,661 | $ | 11,862 | $ | 60,468 | $ | 475 | $ | (45,206 | ) | $ | (6,072 | ) | ||||||||||
_______________ | ||||||||||||||||||||||||
-1 | Represents estimated annual amortization related to above-market operating leases. Amounts will be recorded as a decrease to rental income in the consolidated statements of operations. | |||||||||||||||||||||||
-2 | Represents estimated annual amortization related to below-market ground lease obligations. Amounts will be recorded as an increase to ground lease expense in the consolidated statements of operations. | |||||||||||||||||||||||
-3 | Represents estimated annual amortization related to below-market operating leases. Amounts will be recorded as an increase to rental income in the consolidated statements of operations. | |||||||||||||||||||||||
-4 | Represents estimated annual amortization related to above-market ground lease obligations. Amounts will be recorded as a decrease to ground lease expense in the consolidated statements of operations. |
Receivables
Receivables | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Receivables | ' | |||||||
Receivables | ||||||||
Current Receivables, net | ||||||||
Current receivables, net is primarily comprised of contractual rents and other lease-related obligations due from tenants. The balance consisted of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Current receivables | $ | 13,226 | $ | 12,866 | ||||
Allowance for uncollectible tenant receivables | (2,134 | ) | (2,123 | ) | ||||
Current receivables, net | $ | 11,092 | $ | 10,743 | ||||
Deferred Rent Receivables, net | ||||||||
Deferred rent receivables, net consisted of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Deferred rent receivables | $ | 132,740 | $ | 129,198 | ||||
Allowance for deferred rent receivables | (1,990 | ) | (2,075 | ) | ||||
Deferred rent receivables, net | $ | 130,750 | $ | 127,123 | ||||
Secured_and_Unsecured_Debt_of_
Secured and Unsecured Debt of the Operating Partnership (Kilroy Realty, L.P. [Member]) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Kilroy Realty, L.P. [Member] | ' | |||||||||||||||
Debt Instrument [Line Items] | ' | |||||||||||||||
Secured and Unsecured Debt of the Operating Partnership | ' | |||||||||||||||
Secured and Unsecured Debt of the Operating Partnership | ||||||||||||||||
Secured Debt | ||||||||||||||||
The following table sets forth the composition of our secured debt as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
Type of Debt | Annual Stated Interest Rate (1) | GAAP | Maturity Date | March 31, 2014 (3) | December 31, 2013 (3) | |||||||||||
Effective Rate (1)(2) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Mortgage note payable | 4.27% | 4.27% | Feb-18 | $ | 132,539 | $ | 133,117 | |||||||||
Mortgage note payable (4) | 4.48% | 4.48% | Jul-27 | 97,000 | 97,000 | |||||||||||
Mortgage note payable (4) | 6.05% | 3.50% | Jun-19 | 91,696 | 92,502 | |||||||||||
Mortgage note payable | 6.51% | 6.51% | Feb-17 | 67,415 | 67,663 | |||||||||||
Mortgage note payable (4) | 5.23% | 3.50% | Jan-16 | 54,120 | 54,570 | |||||||||||
Mortgage note payable (4) | 5.57% | 3.25% | Feb-16 | 41,300 | 41,654 | |||||||||||
Mortgage note payable (4) | 5.09% | 3.50% | Aug-15 | 34,712 | 34,845 | |||||||||||
Mortgage note payable (4) | 4.94% | 4.00% | Apr-15 | 27,307 | 27,641 | |||||||||||
Mortgage note payable | 7.15% | 7.15% | May-17 | 8,387 | 8,972 | |||||||||||
Other | Various | Various | Various | 2,470 | 2,470 | |||||||||||
Total | $ | 556,946 | $ | 560,434 | ||||||||||||
______________ | ||||||||||||||||
-1 | All interest rates presented are fixed-rate interest rates. | |||||||||||||||
-2 | This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of discounts/premiums, excluding debt issuance costs. | |||||||||||||||
-3 | Amounts reported include the amounts of unamortized debt premiums and discounts for the periods presented. | |||||||||||||||
-4 | The secured debt and the related properties that secure the debt are held in a special purpose entity and the properties are not available to satisfy the debts and other obligations of the Company or the Operating Partnership. | |||||||||||||||
Although our mortgage loans are secured and non-recourse to the Company and the Operating Partnership, the Company provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities. | ||||||||||||||||
4.25% Exchangeable Senior Notes | ||||||||||||||||
The table below summarizes the balance and significant terms of the Company’s 4.25% Exchangeable Notes due November 2014 (the “4.25% Exchangeable Notes”) outstanding as of March 31, 2014 and December 31, 2013. | ||||||||||||||||
4.25% Exchangeable Notes | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Principal amount | $ | 172,500 | $ | 172,500 | ||||||||||||
Unamortized discount | (2,972 | ) | (4,128 | ) | ||||||||||||
Net carrying amount of liability component | $ | 169,528 | $ | 168,372 | ||||||||||||
Carrying amount of equity component | $19,835 | |||||||||||||||
Issuance date | Nov-09 | |||||||||||||||
Maturity date | Nov-14 | |||||||||||||||
Stated coupon rate (1) | 4.25% | |||||||||||||||
Effective interest rate (2) | 7.13% | |||||||||||||||
Exchange rate per $1,000 principal value of the 4.25% Exchangeable Notes, as adjusted (3) | 27.8307 | |||||||||||||||
Exchange price, as adjusted (3) | $35.93 | |||||||||||||||
Number of shares on which the aggregate consideration to be delivered on conversion is determined (3) | 4,800,796 | |||||||||||||||
_______________ | ||||||||||||||||
-1 | Interest on the 4.25% Exchangeable Notes is payable semi-annually in arrears on May 15th and November 15th of each year. | |||||||||||||||
-2 | The rate at which we record interest expense for financial reporting purposes, which reflects the amortization of the discounts on the 4.25% Exchangeable Notes. This rate represents our conventional debt borrowing rate at the date of issuance. | |||||||||||||||
-3 | The exchange rate, exchange price and the number of shares to be delivered upon conversion are subject to adjustment under certain circumstances including increases in our common dividends. | |||||||||||||||
The 4.25% Exchangeable Notes are exchangeable for shares of the Company’s common stock prior to maturity only upon the occurrence of certain events. During the three months ended March 31, 2014, the closing sale price per share of the common stock of the Company was more than 130% of the exchange price per share of the Company’s common stock for at least 20 trading days in the specified period. As a result, for the three month period ended March 31, 2014, the 4.25% Exchangeable Notes are exchangeable at the exchange rate stated above and may be exchangeable thereafter, if one or more of the events were again to occur during future measurement periods. | ||||||||||||||||
For the three months ended March 31, 2014 and 2013, the per share average trading price of the Company’s common stock on the NYSE was higher than the $35.93 exchange price for the 4.25% Exchangeable Notes, as presented below: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Per share average trading price of the Company’s common stock | $55.18 | $51.14 | ||||||||||||||
The 4.25% Exchangeable Notes were exchangeable as of March 31, 2014 and March 31, 2013. If the Exchangeable Notes were exchanged, the approximate fair value of the shares upon exchange at March 31, 2014 and 2013, using the per share average trading price presented in the table above, would have been as follows: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Approximate fair value of shares upon exchange | $ | 270,602 | $ | 247,300 | ||||||||||||
Principal amount of the 4.25% Exchangeable Notes | 172,500 | 172,500 | ||||||||||||||
Approximate fair value in excess amount of principal amount | $ | 98,102 | $ | 74,800 | ||||||||||||
See Notes 14 and 15 for a discussion of the impact of the 4.25% Exchangeable Notes on our diluted earnings per share and unit calculations for the periods presented. | ||||||||||||||||
Interest Expense for the Exchangeable Notes | ||||||||||||||||
The unamortized discount on the 4.25% Exchangeable Notes is accreted as additional interest expense from the date of issuance through the maturity date of the applicable Exchangeable Notes. The following table summarizes the total interest expense attributable to the 4.25% Exchangeable Notes based on the respective effective interest rates, before the effect of capitalized interest, for the three months ended March 31, 2014 and 2013: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Contractual interest payments | $ | 1,833 | $ | 1,833 | ||||||||||||
Amortization of discount | 1,156 | 1,078 | ||||||||||||||
Interest expense attributable to the Exchangeable Notes | $ | 2,989 | $ | 2,911 | ||||||||||||
Capped Call Transactions | ||||||||||||||||
In connection with the offering of the 4.25% Exchangeable Notes, we entered into capped call option transactions (“capped calls”) to mitigate the dilutive impact of the potential exchange of the 4.25% Exchangeable Notes. The table below summarizes our capped call option positions for the 4.25% Exchangeable Notes as of March 31, 2014 and December 31, 2013. | ||||||||||||||||
4.25% Exchangeable Notes | ||||||||||||||||
Referenced shares of common stock | 4,800,796 | |||||||||||||||
Exchange price including effect of capped calls | $ | 42.81 | ||||||||||||||
The capped calls are expected to terminate upon the earlier of the maturity date of the 4.25% Exchangeable Notes or upon the date upon which the 4.25% Exchangeable Notes are no longer outstanding resulting from an exchange or repurchase by us. The initial cost of capped calls were recorded as a reduction to additional paid-in capital. | ||||||||||||||||
Unsecured Senior Notes | ||||||||||||||||
The following table summarizes the balance and significant terms of the registered unsecured senior notes issued by the Operating Partnership as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
Principal Amount as of | ||||||||||||||||
Issuance date | Maturity date | Stated | Effective interest rate (1) | March 31, | December 31, | |||||||||||
coupon rate | 2014 | 2013 | ||||||||||||||
(in thousands) | ||||||||||||||||
3.800% Unsecured Senior Notes (2) | Jan-13 | Jan-23 | 3.80% | 3.80% | $ | 300,000 | $ | 300,000 | ||||||||
Unamortized discount | (87 | ) | (90 | ) | ||||||||||||
Net carrying amount | $ | 299,913 | $ | 299,910 | ||||||||||||
4.800% Unsecured Senior Notes (3) | Jul-11 | Jul-18 | 4.80% | 4.83% | $ | 325,000 | $ | 325,000 | ||||||||
Unamortized discount | (320 | ) | (339 | ) | ||||||||||||
Net carrying amount | $ | 324,680 | $ | 324,661 | ||||||||||||
6.625% Unsecured Senior Notes (4) | May-10 | Jun-20 | 6.63% | 6.74% | $ | 250,000 | $ | 250,000 | ||||||||
Unamortized discount | (1,313 | ) | (1,367 | ) | ||||||||||||
Net carrying amount | $ | 248,687 | $ | 248,633 | ||||||||||||
5.000% Unsecured Senior Notes (5) | Nov-10 | Nov-15 | 5.00% | 5.01% | $ | 325,000 | $ | 325,000 | ||||||||
Unamortized discount | (63 | ) | (73 | ) | ||||||||||||
Net carrying amount | $ | 324,937 | $ | 324,927 | ||||||||||||
________________________ | ||||||||||||||||
-1 | This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of initial issuance discounts, excluding debt issuance costs. | |||||||||||||||
-2 | Interest on the 3.800% unsecured senior notes is payable semi-annually in arrears on January 15th and July 15th of each year. | |||||||||||||||
-3 | Interest on the 4.800% unsecured senior notes is payable semi-annually in arrears on January 15th and July 15th of each year. | |||||||||||||||
-4 | Interest on the 6.625% unsecured senior notes is payable semi-annually in arrears on June 1st and December 1st of each year. | |||||||||||||||
-5 | Interest on the 5.000% unsecured senior notes is payable semi-annually in arrears on May 3rd and November 3rd of each year. | |||||||||||||||
In addition to the registered unsecured senior note issuances listed above, we also had outstanding Series B unsecured senior notes with an aggregate principal balance of $83.0 million and effective interest rate of 6.45% as of March 31, 2014 and December 31, 2013, that mature in August 2014. The Series B notes require semi-annual interest payment each February 4th and August 4th of each year based on a fixed annual interest rate of 6.45%. | ||||||||||||||||
Term Loan Facility | ||||||||||||||||
The Company’s outstanding borrowings under the term loan facility were $150.0 million as of March 31, 2014 and December 31, 2013. The term loan facility bears interest at an annual rate of LIBOR plus 1.750%, which can vary depending on the Operating Partnership’s credit rating, and is scheduled to mature on March 29, 2016. Under the terms of the term loan facility, we may exercise an option to extend the maturity date by one year. We may elect to borrow up to an additional $100.0 million under an accordion option, subject to bank approval and obtaining commitments for any additional borrowing capacity. | ||||||||||||||||
Unsecured Revolving Credit Facility | ||||||||||||||||
The following table summarizes the balance and terms of our revolving credit facility as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Outstanding borrowings | $ | — | $ | 45,000 | ||||||||||||
Remaining borrowing capacity | 500,000 | 455,000 | ||||||||||||||
Total borrowing capacity (1) | $ | 500,000 | $ | 500,000 | ||||||||||||
Interest rate (2) | — | % | 1.62 | % | ||||||||||||
Facility fee-annual rate (3) | 0.30% | |||||||||||||||
Maturity date (4) | Apr-17 | |||||||||||||||
_______________ | ||||||||||||||||
-1 | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $200.0 million under an accordion feature under the terms of the revolving credit facility. | |||||||||||||||
-2 | The revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.450% as of both March 31, 2014 and December 31, 2013. | |||||||||||||||
-3 | The facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, from 2010 to 2012 we incurred debt origination and legal costs of which, as of March 31, 2014, approximately $4.5 million remains to be amortized through the maturity date of the revolving credit facility. | |||||||||||||||
-4 | Under the terms of the revolving credit facility, we may exercise an option to extend the maturity date by one year. | |||||||||||||||
The Company intends to borrow amounts under the revolving credit facility from time to time for general corporate purposes, to fund potential acquisitions, to finance development and redevelopment expenditures and to potentially repay long-term debt. | ||||||||||||||||
Debt Covenants and Restrictions | ||||||||||||||||
The revolving credit facility, the term loan facility, the unsecured senior notes, and certain other secured debt arrangements contain covenants and restrictions requiring us to meet certain financial ratios and reporting requirements. Some of the more restrictive financial covenants include a maximum ratio of total debt to total asset value, a minimum fixed-charge coverage ratio, a minimum unsecured debt ratio and a minimum unencumbered asset pool debt service coverage ratio. Noncompliance with one or more of the covenants and restrictions could result in the full or partial principal balance of the associated debt becoming immediately due and payable. We believe we were in compliance with all of our debt covenants as of March 31, 2014. | ||||||||||||||||
Debt Maturities | ||||||||||||||||
The following table summarizes the stated debt maturities and scheduled amortization payments, excluding debt discounts and premiums, as of March 31, 2014: | ||||||||||||||||
Year | (in thousands) | |||||||||||||||
Remaining 2014 | $ | 262,932 | ||||||||||||||
2015 | 395,104 | |||||||||||||||
2016 | 249,431 | |||||||||||||||
2017 | 71,748 | |||||||||||||||
2018 | 451,728 | |||||||||||||||
Thereafter | 718,011 | |||||||||||||||
Total (1) | $ | 2,148,954 | ||||||||||||||
________________________ | ||||||||||||||||
-1 | Includes gross principal balance of outstanding debt before impact of net unamortized premiums totaling approximately $8.7 million. | |||||||||||||||
Capitalized Interest and Loan Fees | ||||||||||||||||
The following table sets forth gross interest expense reported in continuing operations, including debt discount/premium and loan cost amortization, net of capitalized interest, for the three months ended March 31, 2014 and 2013. The interest expense capitalized was recorded as a cost of development and redevelopment, and increased the carrying value of undeveloped land and construction in progress. | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Gross interest expense | $ | 28,034 | $ | 27,466 | ||||||||||||
Capitalized interest | (10,782 | ) | (7,732 | ) | ||||||||||||
Interest expense | $ | 17,252 | $ | 19,734 | ||||||||||||
Noncontrolling_Interests_on_th
Noncontrolling Interests on the Company's Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2014 | |
Noncontrolling Interest [Abstract] | ' |
Noncontrolling Interests on the Company's Consolidated Financial Statements | ' |
Noncontrolling Interests on the Company’s Consolidated Financial Statements | |
Common Units of the Operating Partnership | |
The Company owned a 97.9%, 97.8% and 97.6% common general partnership interest in the Operating Partnership as of March 31, 2014, December 31, 2013 and March 31, 2013, respectively. The remaining 2.1%, 2.2% and 2.4% common limited partnership interest as of March 31, 2014, December 31, 2013 and March 31, 2013, respectively, was owned by non-affiliate investors and certain of our executive officers and directors in the form of noncontrolling common units. There were 1,804,200, 1,805,200 and 1,826,503 common units outstanding held by these investors, executive officers and directors as of March 31, 2014, December 31, 2013 and March 31, 2013, respectively. | |
The noncontrolling common units may be redeemed by unitholders for cash. Except under certain circumstances, we, at our option, may satisfy the cash redemption obligation with shares of the Company’s common stock on a one-for-one basis. If satisfied in cash, the value for each noncontrolling common unit upon redemption is the amount equal to the average of the closing quoted price per share of the Company’s common stock, par value $.01 per share, as reported on the NYSE for the ten trading days immediately preceding the applicable redemption date. The aggregate value upon redemption of the then-outstanding noncontrolling common units was $105.4 million and $90.8 million as of March 31, 2014 and December 31, 2013, respectively. This redemption value does not necessarily represent the amount that would be distributed with respect to each noncontrolling common unit in the event of our termination or liquidation. In the event of our termination or liquidation, it is expected in most cases that each common unit would be entitled to a liquidating distribution equal to the liquidating distribution payable in respect of each share of the Company’s common stock. | |
Noncontrolling Interest in Consolidated Variable Interest Entity | |
The noncontrolling interest in consolidated subsidiary represents the third party equity interest in Redwood City Partners, LLC, a consolidated VIE. This noncontrolling interest was $4.9 million at March 31, 2014 and December 31, 2013. |
Stockholders_Equity_of_the_Com
Stockholders' Equity of the Company | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
Stockholders' Equity of the Company | ' |
Stockholders’ Equity of the Company | |
At-The-Market Stock Offering Program | |
Under our at-the-market stock offering program, which commenced in July 2011, we may offer and sell shares of our common stock having an aggregate gross sales price of up to $200.0 million from time to time in “at-the-market” offerings. Since commencement of the program, we have sold 2,183,261 shares of common stock having an aggregate gross sales price of $105.3 million. As of March 31, 2014, shares of common stock having an aggregate gross sales price of up to $94.7 million remain available to be sold under this program. Actual future sales will depend upon a variety of factors, including but not limited to market conditions, the trading price of the Company’s common stock and our capital needs. We have no obligation to sell the remaining shares available for sale under this program. There were no sales of our common stock under our at-the-market offering program for the three months ended March 31, 2014. |
Partners_Capital_of_the_Operat
Partners' Capital of the Operating Partnership | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Partners' Capital Notes [Abstract] | ' | ||||||||
Common Units of the Operating Partnership | ' | ||||||||
Partners’ Capital of the Operating Partnership | |||||||||
Common Units Outstanding | |||||||||
The following table sets forth the number of common units held by the Company and the number of common units held by non-affiliate investors and certain of our executive officers and directors in the form of noncontrolling common units as well as the ownership interest held on each respective date: | |||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||
Company owned common units in the Operating Partnership | 82,218,332 | 82,153,944 | 75,349,705 | ||||||
Company owned general partnership interest | 97.9 | % | 97.8 | % | 97.6 | % | |||
Noncontrolling common units of the Operating Partnership | 1,804,200 | 1,805,200 | 1,826,503 | ||||||
Ownership interest of noncontrolling interest | 2.1 | % | 2.2 | % | 2.4 | % | |||
For a further discussion of the noncontrolling common units as of March 31, 2014 and December 31, 2013, refer to Note 6. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |
Mar. 31, 2014 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |
Share-Based Compensation | ' | |
Share-Based Compensation | ||
Stockholder Approved Equity Compensation Plans | ||
As of March 31, 2014, we maintained one share-based incentive compensation plan, the Kilroy Realty 2006 Incentive Award Plan as amended (the “2006 Plan”). As of March 31, 2014, no shares were available for grant under the 2006 Plan. Under applicable NYSE listing rules, we may not increase the 2006 Plan share limit without stockholder approval. At our Annual Meeting of Stockholders, on May 22, 2014, stockholders will be asked to approve an amendment and restatement of the 2006 Plan which includes an increase in the share limit to 7,120,000 shares. | ||
2014 Share-Based Compensation Grants | ||
On January 29, 2014, the Executive Compensation Committee of the Company’s Board of Directors granted to certain officers of the Company under the 2006 Plan 236,604 restricted stock units (“RSUs”), 119,098 RSUs that are subject to market and performance-based vesting requirements (the “2014 Performance-Based RSU Grant”) and 117,506 RSUs that are subject to time-based vesting requirements (the “2014 Time-Based RSU Grant”). | ||
2014 Performance-Based RSU Grant | ||
The 2014 Performance-Based RSUs are scheduled to vest at the end of a three year period based upon the achievement of pre-established levels of FFO per share (the “performance condition”) for the year ended December 31, 2014 and also based upon the average annual relative stockholder return targets (the “market condition”) for the three year period ending December 31, 2016. The 2014 Performance-Based RSUs are also subject to a three-year service vesting provision and will cliff vest at the end of the three-year period. The number of 2014 Performance-Based RSUs ultimately earned could fluctuate based upon the levels of achievement for both the FFO and relative stockholder return metrics. Compensation expense for the 2014 Performance-Based RSU Grant will be recorded on a straight-line basis over the three year period. | ||
Each 2014 Performance-Based RSU represents the right to receive one share of our common stock in the future. However, in the event that our stockholders do not approve an increase to the share limit under our 2006 Plan, as discussed above, then the 2014 Performance-Based RSUs may be cash settled based on the fair market value of our common stock on the applicable vesting date. As a result, until a sufficient amount of shares are authorized by our stockholders for issuance under the 2006 Plan to cover the payment of these awards, we are required to re-measure the fair value of the 2014 Performance-Based RSU Grant at each reporting date and record compensation expense based on the fair value at each reporting date for the cumulative portion of the performance period that has elapsed. The total fair value of the 2014 Performance-Based RSU Grant was $7.1 million at March 31, 2014 and was calculated using a Monte Carlo simulation pricing model based on the assumptions in the table below. The determination of the fair value of the 2014 Performance-Based RSU Grant takes into consideration the likelihood of achievement of both the performance condition and the market condition discussed above. For the three months ended March 31, 2014, we recorded compensation expense based upon the $63.44 fair value at March 31, 2014 because we did not have shares authorized for issuance by our stockholders under the 2006 Plan. The following table summarizes the assumptions utilized in the Monte Carlo simulation pricing model: | ||
Fair Value Assumptions as of March 31, 2014 | ||
Fair value per share at March 31, 2014 | $63.44 | |
Expected share price volatility | 32.00% | |
Risk-free interest rate | 0.79% | |
Remaining expected life | 2.75 years | |
The computation of expected volatility is based on a blend of the historical volatility of our shares of common stock over approximately six years as that is expected to be most consistent with future volatility and equates to a time period twice as long as the approximate three year performance period of the RSUs and implied volatility data based on the observed pricing of six month publicly-traded options on our shares of common stock. The risk-free interest rate is based on the yield curve on zero-coupon U.S. Treasury STRIP securities in effect at March 31, 2014. The expected dividend yield is estimated by examining the average of the historical dividend yield levels over the remaining 2.75 year term of the RSUs and our current annualized dividend yield as of March 31, 2014. The expected life of the RSUs is equal to the remaining 2.75 year vesting period at March 31, 2014. | ||
2014 Time-Based RSU Grant | ||
The 2014 Time-Based RSUs are scheduled to vest in four equal installments beginning on January 5, 2015 through January 5, 2018. Compensation expense for the 2014 Time-Based RSUs will be recognized on a straight-line basis over the four year service vesting period. Each 2014 Time-Based RSUs represents the right to receive one share of our common stock in the future. However, in the event that our stockholders do not approve an increase to the share limit under our 2006 Plan, as discussed above, then the 2014 Time-Based RSUs may be cash settled, based on the fair market value of our common stock on the applicable payment date. As a result, unless and until a sufficient amount of shares are authorized by our stockholders for issuance under the 2006 Plan to cover the payment of these awards, we are required to re-measure the fair value of the 2014 Time-Based RSUs at each reporting date and record compensation expense based on the fair value at each reporting date for the cumulative portion of the performance period that has elapsed. The total grant date fair value was $6.1 million, which was based on the $51.64 closing share price of the Company’s common stock on the NYSE on the grant date. At March 31, 2014, we recorded compensation expense based upon the $58.58 closing share price of the Company’s common stock on that date because we did not have shares authorized for issuance by our stockholders under the 2006 Plan. | ||
Share-Based Compensation Cost Recorded During the Period | ||
The total compensation cost for all share-based compensation programs was $2.9 million and $2.4 million for the three months ended March 31, 2014 and 2013, respectively. Of the total share-based compensation costs, $0.4 million and $0.2 million was capitalized as part of real estate assets for the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014, there was approximately $36.9 million of total unrecognized compensation cost related to nonvested incentive awards granted under share-based compensation arrangements that is expected to be recognized over a weighted-average period of 2.6 years. $13.6 million of the total unrecognized compensation cost as of March 31, 2014 relates to the 2014 Performance-Based and Time-Based RSU grants which require fair value re-measurement at each reporting period as discussed above. The remaining compensation cost related to these nonvested incentive awards had been recognized in periods prior to March 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
General | |
As of March 31, 2014, we had commitments of approximately $733.6 million, excluding our ground lease commitments, for contracts and executed leases directly related to our operating and redevelopment properties. | |
Environmental Matters | |
We follow the policy of monitoring our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist, we are not currently aware of any environmental liability with respect to the properties that would have a material adverse effect on our financial condition, results of operations and cash flow. Further, we are not aware of any environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency. |
Fair_Value_Measurements_and_Di
Fair Value Measurements and Disclosures | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements and Disclosures | ' | |||||||||||||||
Fair Value Measurements and Disclosures | ||||||||||||||||
Assets and Liabilities Reported at Fair Value | ||||||||||||||||
The only assets we record at fair value on a recurring basis on our consolidated financial statements are the marketable securities related to our deferred compensation plan. The following table sets forth the fair value of our marketable securities as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
Fair Value (Level 1) (1) | ||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||
Description | (in thousands) | |||||||||||||||
Marketable securities (2) | $ | 11,001 | $ | 10,008 | ||||||||||||
_______________ | ||||||||||||||||
-1 | Based on quoted prices in active markets for identical securities. | |||||||||||||||
-2 | The marketable securities are held in a limited rabbi trust. | |||||||||||||||
We report the change in the fair value of the marketable securities at the end of each accounting period in interest income and other net investment gains in the consolidated statements of operations. We adjust the related deferred compensation plan liability to fair value at the end of each accounting period based on the performance of the benchmark funds selected by each participant, which results in a corresponding increase or decrease to compensation cost for the period. | ||||||||||||||||
The following table sets forth the net gain on marketable securities recorded during the three months ended March 31, 2014 and 2013: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Description | (in thousands) | |||||||||||||||
Net gain on marketable securities | $ | 154 | $ | 356 | ||||||||||||
Financial Instruments Disclosed at Fair Value | ||||||||||||||||
The following table sets forth the carrying value and the fair value of our other financial instruments as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(in thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Secured debt (1) | $ | 556,946 | $ | 567,107 | $ | 560,434 | $ | 568,760 | ||||||||
Exchangeable senior notes, net (1) | 169,528 | 175,403 | 168,372 | 178,190 | ||||||||||||
Unsecured debt, net (2) | 1,431,217 | 1,506,815 | 1,431,132 | 1,523,052 | ||||||||||||
Unsecured line of credit (1) | — | — | 45,000 | 45,012 | ||||||||||||
_______________ | ||||||||||||||||
-1 | Fair value calculated using Level II inputs which are based on model-derived valuations in which significant inputs and significant value drivers are observable in active markets. | |||||||||||||||
-2 | Fair value calculated using Level I and Level II inputs. Level I inputs are based on quoted prices for identical instruments in active markets. The carrying value and fair value of the Level I instruments was $873.5 million and $921.2 million, respectively, as of March 31, 2014. The carrying value and fair value of the Level I instruments as of December 31, 2013, was $873.5 million and $929.3 million, respectively. The carrying value and fair value of the Level II instruments was $557.7 million and $585.6 million, respectively, as of March 31, 2014. The carrying value and fair value of the Level II instruments as of December 31, 2013, was $557.7 million and $593.7 million, respectively. |
Other_Significant_Events_Other
Other Significant Events Other Significant Events | 3 Months Ended |
Mar. 31, 2014 | |
Other Income and Expenses [Abstract] | ' |
Other Significant Events | ' |
Other Significant Events | |
In January 2014, a tenant at one of our San Diego, California operating properties exercised an early lease termination clause as permitted under the terms of their lease. As a result, the lease which encompasses approximately 79,000 rentable square feet and was scheduled to expire in February 2020, will terminate during the third quarter of 2014. The total lease termination fee of $5.7 million, of which the Company recorded $1.7 million during the three months ended March 31, 2014, will be recorded as other property income on a straight line basis through the early lease termination date. During the three months ended March 31, 2014, the Company also recognized approximately $0.4 million as a reduction to rental income due to the accelerated amortization of the deferred rent receivable and above market lease for this tenant. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Discontinued Operations | ' | ||||||||||||
Discontinued Operations | |||||||||||||
Real Estate Assets Held for Sale | |||||||||||||
As of March 31, 2014, the following undeveloped land parcel was classified as held for sale: | |||||||||||||
Location | City/Submarket | Property Type | |||||||||||
10850 Via Frontera, San Diego, CA | I-15 Corridor/Rancho Bernardo | Undeveloped Land | |||||||||||
On April 9, 2014 the Company completed the sale of the undeveloped land parcel. See Note 16 “Subsequent Events” for further details. | |||||||||||||
The major classes of assets and liabilities of the properties held for sale as of March 31, 2014 were as follows: | |||||||||||||
Real estate assets and other assets held for sale | (in thousands) | ||||||||||||
Undeveloped land and construction in progress | $ | 28,030 | |||||||||||
Prepaid expenses and other assets, net | 242 | ||||||||||||
Real estate and other assets held for sale, net | $ | 28,272 | |||||||||||
Liabilities of real estate assets held for sale | |||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 634 | |||||||||||
Liabilities of real estate assets held for sale | $ | 634 | |||||||||||
Dispositions | |||||||||||||
The following table summarizes the properties sold during the three months ended March 31, 2014: | |||||||||||||
Location | City/Submarket | Property Type | Month of Disposition | Number of Buildings | Rentable Square Feet | ||||||||
San Diego Properties, San Diego, CA (1)(2) | I-15 Corridor/Sorrento Mesa | Office | January | 12 | 1,049,035 | ||||||||
________________________ | |||||||||||||
-1 | The San Diego Properties included the following: 10020 Pacific Mesa Boulevard, 6055 Lusk Avenue, 5010 and 5005 Wateridge Vista Drive, 15435 and 15445 Innovation Drive, and 15051, 15073, 15231, 15253, 15333 and 15378 Avenue of Science. | ||||||||||||
-2 | These properties were held for sale as of December 31, 2013. | ||||||||||||
At March 31, 2014 and December 31, 2013, approximately $15.3 million and $32.2 million, respectively, of net proceeds related to the buildings disposed of during the three months ended March 31, 2014 and the year ended December 31, 2013 were temporarily being held at a qualified intermediary, at our direction, for the purpose of facilitating Section 1031 Exchanges. The cash proceeds are included in restricted cash on the consolidated balance sheets at March 31, 2014 and December 31, 2013. In February 2014, we successfully completed one of the Section 1031 Exchanges and the $32.2 million cash proceeds were released from the qualified intermediary. | |||||||||||||
For the three months ended March 31, 2014 and 2013, discontinued operations included the income of the twelve operating office properties sold during the three months ended March 31, 2014. For the three months ended March 31, 2013, discontinued operations also included the income from three operating office properties that were sold during 2013. The following table summarizes the revenue and expense components that comprise income from discontinued operations for the three months ended March 31, 2014 and 2013: | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Revenues: | |||||||||||||
Rental income | $ | 458 | $ | 5,773 | |||||||||
Tenant reimbursements | 66 | 757 | |||||||||||
Other property income | 9 | 3 | |||||||||||
Total revenues | 533 | 6,533 | |||||||||||
Expenses: | |||||||||||||
Property expenses | 87 | 968 | |||||||||||
Real estate taxes | 69 | 673 | |||||||||||
Depreciation and amortization | — | 2,690 | |||||||||||
Total expenses | 156 | 4,331 | |||||||||||
Income from discontinued operations before net gain on dispositions of discontinued operations | 377 | 2,202 | |||||||||||
Net gain on dispositions of discontinued operations | 90,115 | — | |||||||||||
Total income from discontinued operations | $ | 90,492 | $ | 2,202 | |||||||||
Net_Income_Loss_Available_to_C
Net Income (Loss) Available to Common Stockholders Per Share of the Company | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net Income (Loss) Available to Common Stockholders Per Share of the Company | ' | |||||||
Net Income (Loss) Available to Common Stockholders Per Share of the Company | ||||||||
The following table reconciles the numerator and denominator in computing the Company’s basic and diluted per-share computations for net income (loss) available to common stockholders for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except share and | ||||||||
per share amounts) | ||||||||
Numerator: | ||||||||
Income from continuing operations | $ | 11,440 | $ | 186 | ||||
(Income) loss from continuing operations attributable to noncontrolling common units of the Operating Partnership | (172 | ) | 72 | |||||
Preferred dividends | (3,313 | ) | (3,313 | ) | ||||
Allocation to participating securities (1) | (427 | ) | (418 | ) | ||||
Numerator for basic and diluted income (loss) from continuing operations available to common stockholders | 7,528 | (3,473 | ) | |||||
Income from discontinued operations | 90,492 | 2,202 | ||||||
Income from discontinued operations attributable to noncontrolling common units of the Operating Partnership | (1,915 | ) | (50 | ) | ||||
Numerator for basic and diluted net income (loss) available to common stockholders | $ | 96,105 | $ | (1,321 | ) | |||
Denominator: | ||||||||
Basic weighted average vested shares outstanding | 82,124,538 | 74,977,240 | ||||||
Effect of dilutive securities | 2,015,532 | — | ||||||
Diluted weighted average vested shares and common share equivalents outstanding | 84,140,070 | 74,977,240 | ||||||
Basic earnings per share: | ||||||||
Income (loss) from continuing operations available to common stockholders per share | $ | 0.09 | $ | (0.05 | ) | |||
Income from discontinued operations per common share | 1.08 | 0.03 | ||||||
Net income (loss) available to common stockholders per share | $ | 1.17 | $ | (0.02 | ) | |||
Diluted earnings per share: | ||||||||
Income (loss) from continuing operations available to common stockholders per share | $ | 0.09 | $ | (0.05 | ) | |||
Income from discontinued operations per common share | 1.05 | 0.03 | ||||||
Net income (loss) available to common stockholders per share | $ | 1.14 | $ | (0.02 | ) | |||
________________________ | ||||||||
-1 | Participating securities include nonvested shares, certain time-based RSUs and vested market-measure RSUs. | |||||||
The impact of the contingently issuable shares, which consist of the 4.25% Exchangeable Notes and 1,520,500 stock options, were considered in our diluted earnings per share calculation for the three months ended March 31, 2014 because we reported income from continuing operations attributable to common stockholders in the respective period and the effect was dilutive. The impact of the Exchangeable Notes and stock options was not considered in our diluted earnings per share calculation for the three months ended March 31, 2013 because we reported a loss from continuing operations attributable to common stockholders and the effect was anti-dilutive. | ||||||||
The 2014 Performance-Based RSUs and our other nonvested market measure-based RSUs are not included in dilutive securities as of March 31, 2014 because they are not considered contingently issuable shares as not all the necessary performance conditions have been met. The impact of our nonvested market measure-based RSUs were not included in dilutive securities as of March 31, 2013 because they were not considered contingently issuable shares as not all the necessary performance conditions were met. |
Net_Income_Loss_Available_to_C1
Net Income (Loss) Available to Common Unitholders Per Unit of the Operating Partnership | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Unit [Abstract] | ' | |||||||
Net Income (Loss) Available to Common Unitholders per Unit of the Operating Partnership | ' | |||||||
Net Income (Loss) Available to Common Unitholders Per Unit of the Operating Partnership | ||||||||
The following table reconciles the numerator and denominator in computing the Operating Partnership’s basic and diluted per-unit computations for net income (loss) available to common unitholders for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except unit and | ||||||||
per unit amounts) | ||||||||
Numerator: | ||||||||
Income from continuing operations | $ | 11,440 | $ | 186 | ||||
Income from continuing operations attributable to noncontrolling interests in consolidated subsidiaries | (65 | ) | (69 | ) | ||||
Preferred distributions | (3,313 | ) | (3,313 | ) | ||||
Allocation to participating securities (1) | (427 | ) | (418 | ) | ||||
Numerator for basic and diluted income (loss) from continuing operations available to common unitholders | 7,635 | (3,614 | ) | |||||
Income from discontinued operations | 90,492 | 2,202 | ||||||
Numerator for basic and diluted net income (loss) available to common unitholders | $ | 98,127 | $ | (1,412 | ) | |||
Denominator: | ||||||||
Basic weighted average vested units outstanding | 83,928,993 | 76,803,743 | ||||||
Effect of dilutive securities | 2,015,532 | — | ||||||
Diluted weighted average vested units and common unit equivalents outstanding | 85,944,525 | 76,803,743 | ||||||
Basic earnings per unit: | ||||||||
Income (loss) from continuing operations available to common unitholders per unit | $ | 0.09 | $ | (0.05 | ) | |||
Income from discontinued operations per common unit | 1.08 | 0.03 | ||||||
Net income (loss) available to common unitholders per unit | $ | 1.17 | $ | (0.02 | ) | |||
Diluted earnings per unit: | ||||||||
Income (loss) from continuing operations available to common unitholders per unit | $ | 0.09 | $ | (0.05 | ) | |||
Income from discontinued operations per common unit | 1.05 | 0.03 | ||||||
Net income (loss) available to common unitholders per unit | $ | 1.14 | $ | (0.02 | ) | |||
________________________ | ||||||||
-1 | Participating securities include nonvested shares, certain time-based RSUs and vested market-measure RSUs. | |||||||
The impact of the contingently issuable units, which consist of the 4.25% Exchangeable Notes and 1,520,500 stock options, were considered in our diluted earnings per unit calculation for the three months ended March 31, 2014 because the Operating Partnership reported income from continuing operations attributable to common unitholders in the respective period and the effect was dilutive. The impact of the Exchangeable Notes and stock options was not considered in our diluted earnings per share calculation for the three months ended March 31, 2013 because the Operating Partnership reported a loss from continuing operations attributable to common unitholders and the effect was anti-dilutive. | ||||||||
The 2014 Performance-Based RSUs and our other nonvested market measure-based RSUs are not included in dilutive securities as of March 31, 2014 because they are not considered contingently issuable shares as not all the necessary performance conditions have been met. The impact of our nonvested market measure-based RSUs were not included in dilutive securities as of March 31, 2013 because they were not considered contingently issuable shares as not all the necessary performance conditions were met. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On April 9, 2014, the Company sold an undeveloped land parcel located at 10850 Via Frontera in the Rancho Bernardo submarket of San Diego, California that was held for sale at March 31, 2014 for a gross sales price of $33.1 million. | |
On April 16, 2014, aggregate dividends, distributions and dividend equivalents of $29.8 million were paid to common stockholders and common unitholders of record on March 31, 2014 and RSU holders of record on April 16, 2014. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Consolidation Policy | ' |
The consolidated financial statements of the Company include the consolidated financial position and results of operations of the Company, the Operating Partnership, the Finance Partnership, KSLLC, Redwood City Partners, LLC and all of our wholly owned and controlled subsidiaries. The consolidated financial statements of the Operating Partnership include the consolidated financial position and results of operations of the Operating Partnership, the Finance Partnership, KSLLC, Redwood City Partners, LLC and all wholly-owned and controlled subsidiaries of the Operating Partnership. All intercompany balances and transactions have been eliminated in the consolidated financial statements. | |
Basis of Accounting | ' |
The accompanying interim financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The interim financial statements for the Company and the Operating Partnership should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2013. | |
Certain amounts in the consolidated statements of operations for prior periods have been reclassified to reflect the activity of discontinued operations. | |
Partially Owned Entities and Variable Interest Entities | ' |
At March 31, 2014, the consolidated financial statements of the Company and the Operating Partnership included one variable interest entity (“VIE”), Redwood City Partners, LLC, in which we were deemed to be the primary beneficiary. This VIE was established in the second quarter of 2013 in connection with an undeveloped land acquisition. The impact of consolidating the VIE increased the Company’s total assets, liabilities and noncontrolling interests by approximately $61.6 million (of which $60.6 million related to real estate held for investment on our consolidated balance sheet), approximately $6.8 million and approximately $4.9 million, respectively, as of March 31, 2014. As of December 31, 2013, the consolidated financial statements of the Company and the Operating Partnership included four VIEs, in which we were deemed to be the primary beneficiary. One of the VIEs was Redwood City Partners, LLC and the remaining three VIEs were established during the third and fourth quarter of 2013 to facilitate a potential Section 1031 Exchange. During the three months ended March 31, 2014, the Section 1031 Exchanges were successfully completed and the three VIEs were terminated. As a result, $32.2 million of our restricted cash balance at December 31, 2013, which related to prior period disposition proceeds that were set aside to facilitate the Section 1031 Exchanges, was released from escrow. The impact of consolidating the VIEs increased the Company’s total assets, liabilities and noncontrolling interests by approximately $251.8 million (of which $234.5 million related to real estate held for investment on our consolidated balance sheet), approximately $12.1 million and approximately $4.9 million, respectively, as of December 31, 2013. | |
Recent Accounting Pronouncements | ' |
On April 10, 2014, the Financial Accounting Standards Board issued final guidance to change the criteria for reporting discontinued operations while enhancing disclosures in this area (Accounting Standards Update (“ASU”) No. 2014-08). Under the new guidance, only disposals representing a strategic shift, such as a major line of business, a major geographical area or a major equity investment, should be presented as discontinued operations. The guidance will be applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The guidance is effective for annual financial statements with fiscal years beginning on or after December 15, 2014 with early adoption permitted for disposals or classifications as held for sale which have not been reported in financial statements previously issued or available for issuance. The Company will adopt the guidance effective January 1, 2015 and the guidance is not anticipated to have a material impact on our consolidated financial statements and notes to our consolidated financial statements. | |
On March 13, 2014, the Emerging Issues Task Force (the “Task Force”) reached a final consensus to amend the accounting guidance for stock compensation tied to performance targets (Issue No. 13-D). The objective of this guidance is to clarify the accounting treatment of certain types of performance conditions in stock-based compensation awards, more specifically, when performance targets can be achieved after the requisite service period. The Task Force concluded that performance criteria subsequent to a service period vesting requirement should be treated as vesting conditions, and as a result, this type of performance condition may delay expense recognition until achievement of the performance target is probable. Issue No. 13-D will be effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015, and early adoption is permitted. The adoption of this guidance is not anticipated to have a material impact on our consolidated financial statements or notes to our consolidated financial statements. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Summary of real estate properties | ' | |||||||||||
Number of | Rentable | Number of | Percentage | |||||||||
Buildings | Square Feet | Tenants | Occupied | |||||||||
Stabilized Office Properties | 107 | 13,305,145 | 527 | 92.4 | % | |||||||
Our stabilized portfolio includes all of our properties with the exception of real estate assets held for sale, undeveloped land, development and redevelopment properties currently under construction or committed for construction, and “lease-up” properties. We define redevelopment properties as those properties for which we expect to spend significant development and construction costs on the existing or acquired buildings pursuant to a formal plan, the intended result of which is a higher economic return on the property. We define “lease-up” properties as properties we recently developed or redeveloped that have not yet reached 95% occupancy and are within one year following cessation of major construction activities. During the first quarter of 2014, we stabilized a redevelopment property in San Francisco, California. As a result, this property is included in our stabilized portfolio as of March 31, 2014. | ||||||||||||
As of March 31, 2014, the following properties were excluded from our stabilized portfolio: | ||||||||||||
Number of Properties | Estimated Rentable | |||||||||||
Square Feet | ||||||||||||
Development properties under construction (1) | 6 | 2,538,000 | ||||||||||
_______________ | ||||||||||||
-1 | Estimated rentable square feet upon completion. |
Acquisitions_Tables
Acquisitions (Tables) (Office Properties Acquisitions [Member]) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Office Properties Acquisitions [Member] | ' | |||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||
Acquired operating properties from unrelated third parties | ' | |||||||||||||
During the three months ended March 31, 2014, we acquired the one operating office property, listed below, from an unrelated third party. The acquisition was funded with proceeds from the 2013 and 2014 dispositions (see Note 13). | ||||||||||||||
Property | Date of Acquisition | Number of | Rentable Square | Occupancy as of March 31, 2014 | Purchase | |||||||||
Buildings | Feet | Price | ||||||||||||
(in millions) | ||||||||||||||
401 Terry Avenue North, Seattle, WA | March 13, 2014 | 1 | 140,605 | 100.00% | $ | 106.1 | ||||||||
Fair values of assets acquired and liabilities assumed | ' | |||||||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed on the acquisition date: | ||||||||||||||
Total 2014 | ||||||||||||||
Acquisitions | ||||||||||||||
(in thousands) | ||||||||||||||
Assets | ||||||||||||||
Land and improvements | $ | 22,500 | ||||||||||||
Buildings and improvements (1) | 77,046 | |||||||||||||
Deferred leasing costs and acquisition-related intangible assets (2) | 11,199 | |||||||||||||
Total assets acquired | 110,745 | |||||||||||||
Liabilities | ||||||||||||||
Deferred revenue and acquisition-related intangible liabilities (3) | 4,620 | |||||||||||||
Total liabilities assumed | 4,620 | |||||||||||||
Net assets and liabilities acquired | $ | 106,125 | ||||||||||||
_______________ | ||||||||||||||
-1 | Represents buildings, building improvements and tenant improvements. | |||||||||||||
-2 | Represents in-place leases of approximately $9.3 million (with a weighted average amortization period of seven years) and leasing commissions of approximately $1.9 million (with a weighted average amortization period of seven years). | |||||||||||||
-3 | Represents below-market leases of approximately $4.6 million (with a weighted average amortization period of seven years). |
Deferred_Leasing_Costs_and_Acq1
Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Intangible Assets and Liabilities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Summary of identified deferred leasing costs and acquisition-related intangible assets and liabilities | ' | |||||||||||||||||||||||
The following table summarizes our deferred leasing costs and acquisition-related intangible assets (acquired value of leasing costs, above-market operating leases, in-place leases and below-market ground lease obligation) and intangible liabilities (acquired value of below-market operating leases and above-market ground lease obligation) as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Deferred Leasing Costs and Acquisition-Related Intangible Assets, net: | ||||||||||||||||||||||||
Deferred leasing costs | $ | 183,813 | $ | 178,720 | ||||||||||||||||||||
Accumulated amortization | (68,152 | ) | (63,246 | ) | ||||||||||||||||||||
Deferred leasing costs, net | 115,661 | 115,474 | ||||||||||||||||||||||
Above-market operating leases | 27,351 | 27,635 | ||||||||||||||||||||||
Accumulated amortization | (15,489 | ) | (14,283 | ) | ||||||||||||||||||||
Above-market operating leases, net | 11,862 | 13,352 | ||||||||||||||||||||||
In-place leases | 104,643 | 100,318 | ||||||||||||||||||||||
Accumulated amortization | (44,175 | ) | (42,999 | ) | ||||||||||||||||||||
In-place leases, net | 60,468 | 57,319 | ||||||||||||||||||||||
Below-market ground lease obligation | 490 | 490 | ||||||||||||||||||||||
Accumulated amortization | (15 | ) | (13 | ) | ||||||||||||||||||||
Below-market ground lease obligation, net | 475 | 477 | ||||||||||||||||||||||
Total deferred leasing costs and acquisition-related intangible assets, net | $ | 188,466 | $ | 186,622 | ||||||||||||||||||||
Acquisition-Related Intangible Liabilities, net: (1) | ||||||||||||||||||||||||
Below-market operating leases | $ | 73,522 | $ | 69,385 | ||||||||||||||||||||
Accumulated amortization | (28,316 | ) | (25,706 | ) | ||||||||||||||||||||
Below-market operating leases, net | 45,206 | 43,679 | ||||||||||||||||||||||
Above-market ground lease obligation | 6,320 | 6,320 | ||||||||||||||||||||||
Accumulated amortization | (248 | ) | (223 | ) | ||||||||||||||||||||
Above-market ground lease obligation, net | 6,072 | 6,097 | ||||||||||||||||||||||
Total acquisition-related intangible liabilities, net | $ | 51,278 | $ | 49,776 | ||||||||||||||||||||
_______________ | ||||||||||||||||||||||||
-1 | Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets. | |||||||||||||||||||||||
Schedule Of Finite Lived Intangible Assets and Liabilities Amortization Expense | ' | |||||||||||||||||||||||
The following table sets forth amortization related to deferred leasing costs and acquisition-related intangibles, including amounts attributable to discontinued operations, for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Deferred leasing costs (1) | $ | 6,780 | $ | 7,844 | ||||||||||||||||||||
Above-market operating leases (2) | 1,490 | 1,438 | ||||||||||||||||||||||
In-place leases (1) | 6,136 | 7,458 | ||||||||||||||||||||||
Below-market ground lease obligation (3) | — | 2 | ||||||||||||||||||||||
Below-market operating leases (4) | (3,093 | ) | (3,485 | ) | ||||||||||||||||||||
Above-market ground lease obligation (5) | (25 | ) | (25 | ) | ||||||||||||||||||||
Total | $ | 11,288 | $ | 13,232 | ||||||||||||||||||||
_______________ | ||||||||||||||||||||||||
-1 | The amortization of deferred leasing costs related to lease incentives is recorded to rental income and other deferred leasing costs and in-place leases is recorded to depreciation and amortization expense in the consolidated statements of operations for the periods presented. | |||||||||||||||||||||||
-2 | The amortization of above-market operating leases is recorded as a decrease to rental income in the consolidated statements of operations for the periods presented. | |||||||||||||||||||||||
-3 | The amortization of the below-market ground lease obligation is recorded as an increase to ground lease expense in the consolidated statements of operations for the periods presented. | |||||||||||||||||||||||
-4 | The amortization of below-market operating leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented. | |||||||||||||||||||||||
-5 | The amortization of the above-market ground lease obligation is recorded as a decrease to ground lease expense in the consolidated statements of operations for the periods presented. | |||||||||||||||||||||||
Schedule of Finite Lived Intangible Assets And Liabilities Future Amortization Expense | ' | |||||||||||||||||||||||
The following table sets forth the estimated annual amortization expense related to deferred leasing costs and acquisition-related intangibles as of March 31, 2014 for future periods: | ||||||||||||||||||||||||
Year | Deferred Leasing Costs | Above-Market Operating Leases (1) | In-Place Leases | Below-Market Ground Lease Obligation (2) | Below-Market Operating Leases (3) | Above-Market Ground Lease Obligation (4) | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Remaining 2014 | $ | 20,006 | $ | 3,830 | $ | 15,274 | $ | 6 | $ | (9,802 | ) | $ | (76 | ) | ||||||||||
2015 | 22,162 | 2,918 | 13,562 | 8 | (9,577 | ) | (101 | ) | ||||||||||||||||
2016 | 19,351 | 1,891 | 10,475 | 8 | (7,847 | ) | (101 | ) | ||||||||||||||||
2017 | 16,742 | 1,573 | 8,774 | 8 | (6,780 | ) | (101 | ) | ||||||||||||||||
2018 | 13,416 | 973 | 5,689 | 8 | (5,177 | ) | (101 | ) | ||||||||||||||||
Thereafter | 23,984 | 677 | 6,694 | 437 | (6,023 | ) | (5,592 | ) | ||||||||||||||||
Total | $ | 115,661 | $ | 11,862 | $ | 60,468 | $ | 475 | $ | (45,206 | ) | $ | (6,072 | ) | ||||||||||
_______________ | ||||||||||||||||||||||||
-1 | Represents estimated annual amortization related to above-market operating leases. Amounts will be recorded as a decrease to rental income in the consolidated statements of operations. | |||||||||||||||||||||||
-2 | Represents estimated annual amortization related to below-market ground lease obligations. Amounts will be recorded as an increase to ground lease expense in the consolidated statements of operations. | |||||||||||||||||||||||
-3 | Represents estimated annual amortization related to below-market operating leases. Amounts will be recorded as an increase to rental income in the consolidated statements of operations. | |||||||||||||||||||||||
-4 | Represents estimated annual amortization related to above-market ground lease obligations. Amounts will be recorded as a decrease to ground lease expense in the consolidated statements of operations. |
Receivables_Tables
Receivables (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Current Receivables, net | ' | |||||||
Current receivables, net is primarily comprised of contractual rents and other lease-related obligations due from tenants. The balance consisted of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Current receivables | $ | 13,226 | $ | 12,866 | ||||
Allowance for uncollectible tenant receivables | (2,134 | ) | (2,123 | ) | ||||
Current receivables, net | $ | 11,092 | $ | 10,743 | ||||
Deferred Rent Receivables, net | ' | |||||||
Deferred rent receivables, net consisted of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Deferred rent receivables | $ | 132,740 | $ | 129,198 | ||||
Allowance for deferred rent receivables | (1,990 | ) | (2,075 | ) | ||||
Deferred rent receivables, net | $ | 130,750 | $ | 127,123 | ||||
Secured_and_Unsecured_Debt_of_1
Secured and Unsecured Debt of the Operating Partnership (Tables) (Kilroy Realty, L.P. [Member]) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Debt Instrument [Line Items] | ' | |||||||||||||||
Per Share Average Trading Price Of Companys Common Stock On Stock Exchange [Tables Text Block] | ' | |||||||||||||||
For the three months ended March 31, 2014 and 2013, the per share average trading price of the Company’s common stock on the NYSE was higher than the $35.93 exchange price for the 4.25% Exchangeable Notes, as presented below: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Per share average trading price of the Company’s common stock | $55.18 | $51.14 | ||||||||||||||
Schedule of Debt Conversions, Fair Value Upon Conversion [Table Text Block] | ' | |||||||||||||||
The 4.25% Exchangeable Notes were exchangeable as of March 31, 2014 and March 31, 2013. If the Exchangeable Notes were exchanged, the approximate fair value of the shares upon exchange at March 31, 2014 and 2013, using the per share average trading price presented in the table above, would have been as follows: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Approximate fair value of shares upon exchange | $ | 270,602 | $ | 247,300 | ||||||||||||
Principal amount of the 4.25% Exchangeable Notes | 172,500 | 172,500 | ||||||||||||||
Approximate fair value in excess amount of principal amount | $ | 98,102 | $ | 74,800 | ||||||||||||
Interest expense for the exchangeable notes | ' | |||||||||||||||
The following table summarizes the total interest expense attributable to the 4.25% Exchangeable Notes based on the respective effective interest rates, before the effect of capitalized interest, for the three months ended March 31, 2014 and 2013: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Contractual interest payments | $ | 1,833 | $ | 1,833 | ||||||||||||
Amortization of discount | 1,156 | 1,078 | ||||||||||||||
Interest expense attributable to the Exchangeable Notes | $ | 2,989 | $ | 2,911 | ||||||||||||
Capped call Transactions | ' | |||||||||||||||
The table below summarizes our capped call option positions for the 4.25% Exchangeable Notes as of March 31, 2014 and December 31, 2013. | ||||||||||||||||
4.25% Exchangeable Notes | ||||||||||||||||
Referenced shares of common stock | 4,800,796 | |||||||||||||||
Exchange price including effect of capped calls | $ | 42.81 | ||||||||||||||
Unsecured Revolving Credit Facility | ' | |||||||||||||||
The following table summarizes the balance and terms of our revolving credit facility as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Outstanding borrowings | $ | — | $ | 45,000 | ||||||||||||
Remaining borrowing capacity | 500,000 | 455,000 | ||||||||||||||
Total borrowing capacity (1) | $ | 500,000 | $ | 500,000 | ||||||||||||
Interest rate (2) | — | % | 1.62 | % | ||||||||||||
Facility fee-annual rate (3) | 0.30% | |||||||||||||||
Maturity date (4) | Apr-17 | |||||||||||||||
_______________ | ||||||||||||||||
-1 | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $200.0 million under an accordion feature under the terms of the revolving credit facility. | |||||||||||||||
-2 | The revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.450% as of both March 31, 2014 and December 31, 2013. | |||||||||||||||
-3 | The facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, from 2010 to 2012 we incurred debt origination and legal costs of which, as of March 31, 2014, approximately $4.5 million remains to be amortized through the maturity date of the revolving credit facility. | |||||||||||||||
-4 | Under the terms of the revolving credit facility, we may exercise an option to extend the maturity date by one year. | |||||||||||||||
Stated debt maturities and scheduled amortization payments, excluding debt discounts | ' | |||||||||||||||
The following table summarizes the stated debt maturities and scheduled amortization payments, excluding debt discounts and premiums, as of March 31, 2014: | ||||||||||||||||
Year | (in thousands) | |||||||||||||||
Remaining 2014 | $ | 262,932 | ||||||||||||||
2015 | 395,104 | |||||||||||||||
2016 | 249,431 | |||||||||||||||
2017 | 71,748 | |||||||||||||||
2018 | 451,728 | |||||||||||||||
Thereafter | 718,011 | |||||||||||||||
Total (1) | $ | 2,148,954 | ||||||||||||||
________________________ | ||||||||||||||||
-1 | Includes gross principal balance of outstanding debt before impact of net unamortized premiums totaling approximately $8.7 million. | |||||||||||||||
Capitalized interest and loan fees | ' | |||||||||||||||
The following table sets forth gross interest expense reported in continuing operations, including debt discount/premium and loan cost amortization, net of capitalized interest, for the three months ended March 31, 2014 and 2013. The interest expense capitalized was recorded as a cost of development and redevelopment, and increased the carrying value of undeveloped land and construction in progress. | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Gross interest expense | $ | 28,034 | $ | 27,466 | ||||||||||||
Capitalized interest | (10,782 | ) | (7,732 | ) | ||||||||||||
Interest expense | $ | 17,252 | $ | 19,734 | ||||||||||||
Senior Notes [Member] | ' | |||||||||||||||
Debt Instrument [Line Items] | ' | |||||||||||||||
Balance and significant terms of debt | ' | |||||||||||||||
The following table summarizes the balance and significant terms of the registered unsecured senior notes issued by the Operating Partnership as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
Principal Amount as of | ||||||||||||||||
Issuance date | Maturity date | Stated | Effective interest rate (1) | March 31, | December 31, | |||||||||||
coupon rate | 2014 | 2013 | ||||||||||||||
(in thousands) | ||||||||||||||||
3.800% Unsecured Senior Notes (2) | Jan-13 | Jan-23 | 3.80% | 3.80% | $ | 300,000 | $ | 300,000 | ||||||||
Unamortized discount | (87 | ) | (90 | ) | ||||||||||||
Net carrying amount | $ | 299,913 | $ | 299,910 | ||||||||||||
4.800% Unsecured Senior Notes (3) | Jul-11 | Jul-18 | 4.80% | 4.83% | $ | 325,000 | $ | 325,000 | ||||||||
Unamortized discount | (320 | ) | (339 | ) | ||||||||||||
Net carrying amount | $ | 324,680 | $ | 324,661 | ||||||||||||
6.625% Unsecured Senior Notes (4) | May-10 | Jun-20 | 6.63% | 6.74% | $ | 250,000 | $ | 250,000 | ||||||||
Unamortized discount | (1,313 | ) | (1,367 | ) | ||||||||||||
Net carrying amount | $ | 248,687 | $ | 248,633 | ||||||||||||
5.000% Unsecured Senior Notes (5) | Nov-10 | Nov-15 | 5.00% | 5.01% | $ | 325,000 | $ | 325,000 | ||||||||
Unamortized discount | (63 | ) | (73 | ) | ||||||||||||
Net carrying amount | $ | 324,937 | $ | 324,927 | ||||||||||||
________________________ | ||||||||||||||||
-1 | This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of initial issuance discounts, excluding debt issuance costs. | |||||||||||||||
-2 | Interest on the 3.800% unsecured senior notes is payable semi-annually in arrears on January 15th and July 15th of each year. | |||||||||||||||
-3 | Interest on the 4.800% unsecured senior notes is payable semi-annually in arrears on January 15th and July 15th of each year. | |||||||||||||||
-4 | Interest on the 6.625% unsecured senior notes is payable semi-annually in arrears on June 1st and December 1st of each year. | |||||||||||||||
-5 | Interest on the 5.000% unsecured senior notes is payable semi-annually in arrears on May 3rd and November 3rd of each year. | |||||||||||||||
Secured Debt [Member] | ' | |||||||||||||||
Debt Instrument [Line Items] | ' | |||||||||||||||
Balance and significant terms of debt | ' | |||||||||||||||
The following table sets forth the composition of our secured debt as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
Type of Debt | Annual Stated Interest Rate (1) | GAAP | Maturity Date | March 31, 2014 (3) | December 31, 2013 (3) | |||||||||||
Effective Rate (1)(2) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Mortgage note payable | 4.27% | 4.27% | Feb-18 | $ | 132,539 | $ | 133,117 | |||||||||
Mortgage note payable (4) | 4.48% | 4.48% | Jul-27 | 97,000 | 97,000 | |||||||||||
Mortgage note payable (4) | 6.05% | 3.50% | Jun-19 | 91,696 | 92,502 | |||||||||||
Mortgage note payable | 6.51% | 6.51% | Feb-17 | 67,415 | 67,663 | |||||||||||
Mortgage note payable (4) | 5.23% | 3.50% | Jan-16 | 54,120 | 54,570 | |||||||||||
Mortgage note payable (4) | 5.57% | 3.25% | Feb-16 | 41,300 | 41,654 | |||||||||||
Mortgage note payable (4) | 5.09% | 3.50% | Aug-15 | 34,712 | 34,845 | |||||||||||
Mortgage note payable (4) | 4.94% | 4.00% | Apr-15 | 27,307 | 27,641 | |||||||||||
Mortgage note payable | 7.15% | 7.15% | May-17 | 8,387 | 8,972 | |||||||||||
Other | Various | Various | Various | 2,470 | 2,470 | |||||||||||
Total | $ | 556,946 | $ | 560,434 | ||||||||||||
______________ | ||||||||||||||||
-1 | All interest rates presented are fixed-rate interest rates. | |||||||||||||||
-2 | This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of discounts/premiums, excluding debt issuance costs. | |||||||||||||||
-3 | Amounts reported include the amounts of unamortized debt premiums and discounts for the periods presented. | |||||||||||||||
-4 | The secured debt and the related properties that secure the debt are held in a special purpose entity and the properties are not available to satisfy the debts and other obligations of the Company or the Operating Partnership. | |||||||||||||||
Convertible Debt [Member] | ' | |||||||||||||||
Debt Instrument [Line Items] | ' | |||||||||||||||
Balance and significant terms of debt | ' | |||||||||||||||
The table below summarizes the balance and significant terms of the Company’s 4.25% Exchangeable Notes due November 2014 (the “4.25% Exchangeable Notes”) outstanding as of March 31, 2014 and December 31, 2013. | ||||||||||||||||
4.25% Exchangeable Notes | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Principal amount | $ | 172,500 | $ | 172,500 | ||||||||||||
Unamortized discount | (2,972 | ) | (4,128 | ) | ||||||||||||
Net carrying amount of liability component | $ | 169,528 | $ | 168,372 | ||||||||||||
Carrying amount of equity component | $19,835 | |||||||||||||||
Issuance date | Nov-09 | |||||||||||||||
Maturity date | Nov-14 | |||||||||||||||
Stated coupon rate (1) | 4.25% | |||||||||||||||
Effective interest rate (2) | 7.13% | |||||||||||||||
Exchange rate per $1,000 principal value of the 4.25% Exchangeable Notes, as adjusted (3) | 27.8307 | |||||||||||||||
Exchange price, as adjusted (3) | $35.93 | |||||||||||||||
Number of shares on which the aggregate consideration to be delivered on conversion is determined (3) | 4,800,796 | |||||||||||||||
_______________ | ||||||||||||||||
-1 | Interest on the 4.25% Exchangeable Notes is payable semi-annually in arrears on May 15th and November 15th of each year. | |||||||||||||||
-2 | The rate at which we record interest expense for financial reporting purposes, which reflects the amortization of the discounts on the 4.25% Exchangeable Notes. This rate represents our conventional debt borrowing rate at the date of issuance. | |||||||||||||||
-3 | The exchange rate, exchange price and the number of shares to be delivered upon conversion are subject to adjustment under certain circumstances including increases in our common dividends. |
Partners_Capital_of_the_Operat1
Partners' Capital of the Operating Partnership Ownership Interest (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||
Redeemable Noncontrolling Interest | ' | ||||||||
The following table sets forth the number of common units held by the Company and the number of common units held by non-affiliate investors and certain of our executive officers and directors in the form of noncontrolling common units as well as the ownership interest held on each respective date: | |||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||
Company owned common units in the Operating Partnership | 82,218,332 | 82,153,944 | 75,349,705 | ||||||
Company owned general partnership interest | 97.9 | % | 97.8 | % | 97.6 | % | |||
Noncontrolling common units of the Operating Partnership | 1,804,200 | 1,805,200 | 1,826,503 | ||||||
Ownership interest of noncontrolling interest | 2.1 | % | 2.2 | % | 2.4 | % |
ShareBased_Compensation_ShareB
Share-Based Compensation Share-Based Compensation (Tables) | 3 Months Ended | |
Mar. 31, 2014 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |
Schedule of Share-based Payment Award, Restricted Stock Units, Valuation Assumptions | ' | |
The following table summarizes the assumptions utilized in the Monte Carlo simulation pricing model: | ||
Fair Value Assumptions as of March 31, 2014 | ||
Fair value per share at March 31, 2014 | $63.44 | |
Expected share price volatility | 32.00% | |
Risk-free interest rate | 0.79% | |
Remaining expected life | 2.75 years |
Fair_Value_Measurements_and_Di1
Fair Value Measurements and Disclosures (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value of the company's marketable securities | ' | |||||||||||||||
The following table sets forth the fair value of our marketable securities as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
Fair Value (Level 1) (1) | ||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||
Description | (in thousands) | |||||||||||||||
Marketable securities (2) | $ | 11,001 | $ | 10,008 | ||||||||||||
_______________ | ||||||||||||||||
-1 | Based on quoted prices in active markets for identical securities. | |||||||||||||||
-2 | The marketable securities are held in a limited rabbi trust. | |||||||||||||||
Fair value adjustment of marketable securities and deferred compensation plan liability | ' | |||||||||||||||
The following table sets forth the net gain on marketable securities recorded during the three months ended March 31, 2014 and 2013: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Description | (in thousands) | |||||||||||||||
Net gain on marketable securities | $ | 154 | $ | 356 | ||||||||||||
Carrying value and fair value of company's remaining financial assets and liabilities | ' | |||||||||||||||
The following table sets forth the carrying value and the fair value of our other financial instruments as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(in thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Secured debt (1) | $ | 556,946 | $ | 567,107 | $ | 560,434 | $ | 568,760 | ||||||||
Exchangeable senior notes, net (1) | 169,528 | 175,403 | 168,372 | 178,190 | ||||||||||||
Unsecured debt, net (2) | 1,431,217 | 1,506,815 | 1,431,132 | 1,523,052 | ||||||||||||
Unsecured line of credit (1) | — | — | 45,000 | 45,012 | ||||||||||||
_______________ | ||||||||||||||||
-1 | Fair value calculated using Level II inputs which are based on model-derived valuations in which significant inputs and significant value drivers are observable in active markets. | |||||||||||||||
-2 | Fair value calculated using Level I and Level II inputs. Level I inputs are based on quoted prices for identical instruments in active markets. The carrying value and fair value of the Level I instruments was $873.5 million and $921.2 million, respectively, as of March 31, 2014. The carrying value and fair value of the Level I instruments as of December 31, 2013, was $873.5 million and $929.3 million, respectively. The carrying value and fair value of the Level II instruments was $557.7 million and $585.6 million, respectively, as of March 31, 2014. The carrying value and fair value of the Level II instruments as of December 31, 2013, was $557.7 million and $593.7 million, respectively. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Property Sold During The Period | ' | ||||||||||||
The following table summarizes the properties sold during the three months ended March 31, 2014: | |||||||||||||
Location | City/Submarket | Property Type | Month of Disposition | Number of Buildings | Rentable Square Feet | ||||||||
San Diego Properties, San Diego, CA (1)(2) | I-15 Corridor/Sorrento Mesa | Office | January | 12 | 1,049,035 | ||||||||
________________________ | |||||||||||||
-1 | The San Diego Properties included the following: 10020 Pacific Mesa Boulevard, 6055 Lusk Avenue, 5010 and 5005 Wateridge Vista Drive, 15435 and 15445 Innovation Drive, and 15051, 15073, 15231, 15253, 15333 and 15378 Avenue of Science. | ||||||||||||
-2 | These properties were held for sale as of December 31, 2013. | ||||||||||||
Assets Held-for-sale | ' | ||||||||||||
The major classes of assets and liabilities of the properties held for sale as of March 31, 2014 were as follows: | |||||||||||||
Real estate assets and other assets held for sale | (in thousands) | ||||||||||||
Undeveloped land and construction in progress | $ | 28,030 | |||||||||||
Prepaid expenses and other assets, net | 242 | ||||||||||||
Real estate and other assets held for sale, net | $ | 28,272 | |||||||||||
Liabilities of real estate assets held for sale | |||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 634 | |||||||||||
Liabilities of real estate assets held for sale | $ | 634 | |||||||||||
As of March 31, 2014, the following undeveloped land parcel was classified as held for sale: | |||||||||||||
Location | City/Submarket | Property Type | |||||||||||
10850 Via Frontera, San Diego, CA | I-15 Corridor/Rancho Bernardo | Undeveloped Land | |||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | ' | ||||||||||||
The following table summarizes the revenue and expense components that comprise income from discontinued operations for the three months ended March 31, 2014 and 2013: | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Revenues: | |||||||||||||
Rental income | $ | 458 | $ | 5,773 | |||||||||
Tenant reimbursements | 66 | 757 | |||||||||||
Other property income | 9 | 3 | |||||||||||
Total revenues | 533 | 6,533 | |||||||||||
Expenses: | |||||||||||||
Property expenses | 87 | 968 | |||||||||||
Real estate taxes | 69 | 673 | |||||||||||
Depreciation and amortization | — | 2,690 | |||||||||||
Total expenses | 156 | 4,331 | |||||||||||
Income from discontinued operations before net gain on dispositions of discontinued operations | 377 | 2,202 | |||||||||||
Net gain on dispositions of discontinued operations | 90,115 | — | |||||||||||
Total income from discontinued operations | $ | 90,492 | $ | 2,202 | |||||||||
Net_Loss_Income_Available_to_C
Net (Loss) Income Available to Common Stockholders Per Share of the Company (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net income (loss) available to common stockholders | ' | |||||||
The following table reconciles the numerator and denominator in computing the Company’s basic and diluted per-share computations for net income (loss) available to common stockholders for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except share and | ||||||||
per share amounts) | ||||||||
Numerator: | ||||||||
Income from continuing operations | $ | 11,440 | $ | 186 | ||||
(Income) loss from continuing operations attributable to noncontrolling common units of the Operating Partnership | (172 | ) | 72 | |||||
Preferred dividends | (3,313 | ) | (3,313 | ) | ||||
Allocation to participating securities (1) | (427 | ) | (418 | ) | ||||
Numerator for basic and diluted income (loss) from continuing operations available to common stockholders | 7,528 | (3,473 | ) | |||||
Income from discontinued operations | 90,492 | 2,202 | ||||||
Income from discontinued operations attributable to noncontrolling common units of the Operating Partnership | (1,915 | ) | (50 | ) | ||||
Numerator for basic and diluted net income (loss) available to common stockholders | $ | 96,105 | $ | (1,321 | ) | |||
Denominator: | ||||||||
Basic weighted average vested shares outstanding | 82,124,538 | 74,977,240 | ||||||
Effect of dilutive securities | 2,015,532 | — | ||||||
Diluted weighted average vested shares and common share equivalents outstanding | 84,140,070 | 74,977,240 | ||||||
Basic earnings per share: | ||||||||
Income (loss) from continuing operations available to common stockholders per share | $ | 0.09 | $ | (0.05 | ) | |||
Income from discontinued operations per common share | 1.08 | 0.03 | ||||||
Net income (loss) available to common stockholders per share | $ | 1.17 | $ | (0.02 | ) | |||
Diluted earnings per share: | ||||||||
Income (loss) from continuing operations available to common stockholders per share | $ | 0.09 | $ | (0.05 | ) | |||
Income from discontinued operations per common share | 1.05 | 0.03 | ||||||
Net income (loss) available to common stockholders per share | $ | 1.14 | $ | (0.02 | ) | |||
________________________ | ||||||||
-1 | Participating securities include nonvested shares, certain time-based RSUs and vested market-measure RSUs. |
Net_Income_Loss_Available_to_C2
Net Income (Loss) Available to Common Unitholders Per Unit of the Operating Partnership (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Net Income (Loss) Available To Common Unitholders [Line Items] | ' | |||||||
Net income (loss) available to common unitholders | ' | |||||||
The following table reconciles the numerator and denominator in computing the Company’s basic and diluted per-share computations for net income (loss) available to common stockholders for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except share and | ||||||||
per share amounts) | ||||||||
Numerator: | ||||||||
Income from continuing operations | $ | 11,440 | $ | 186 | ||||
(Income) loss from continuing operations attributable to noncontrolling common units of the Operating Partnership | (172 | ) | 72 | |||||
Preferred dividends | (3,313 | ) | (3,313 | ) | ||||
Allocation to participating securities (1) | (427 | ) | (418 | ) | ||||
Numerator for basic and diluted income (loss) from continuing operations available to common stockholders | 7,528 | (3,473 | ) | |||||
Income from discontinued operations | 90,492 | 2,202 | ||||||
Income from discontinued operations attributable to noncontrolling common units of the Operating Partnership | (1,915 | ) | (50 | ) | ||||
Numerator for basic and diluted net income (loss) available to common stockholders | $ | 96,105 | $ | (1,321 | ) | |||
Denominator: | ||||||||
Basic weighted average vested shares outstanding | 82,124,538 | 74,977,240 | ||||||
Effect of dilutive securities | 2,015,532 | — | ||||||
Diluted weighted average vested shares and common share equivalents outstanding | 84,140,070 | 74,977,240 | ||||||
Basic earnings per share: | ||||||||
Income (loss) from continuing operations available to common stockholders per share | $ | 0.09 | $ | (0.05 | ) | |||
Income from discontinued operations per common share | 1.08 | 0.03 | ||||||
Net income (loss) available to common stockholders per share | $ | 1.17 | $ | (0.02 | ) | |||
Diluted earnings per share: | ||||||||
Income (loss) from continuing operations available to common stockholders per share | $ | 0.09 | $ | (0.05 | ) | |||
Income from discontinued operations per common share | 1.05 | 0.03 | ||||||
Net income (loss) available to common stockholders per share | $ | 1.14 | $ | (0.02 | ) | |||
________________________ | ||||||||
-1 | Participating securities include nonvested shares, certain time-based RSUs and vested market-measure RSUs. | |||||||
Kilroy Realty, L.P. [Member] | ' | |||||||
Net Income (Loss) Available To Common Unitholders [Line Items] | ' | |||||||
Net income (loss) available to common unitholders | ' | |||||||
The following table reconciles the numerator and denominator in computing the Operating Partnership’s basic and diluted per-unit computations for net income (loss) available to common unitholders for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except unit and | ||||||||
per unit amounts) | ||||||||
Numerator: | ||||||||
Income from continuing operations | $ | 11,440 | $ | 186 | ||||
Income from continuing operations attributable to noncontrolling interests in consolidated subsidiaries | (65 | ) | (69 | ) | ||||
Preferred distributions | (3,313 | ) | (3,313 | ) | ||||
Allocation to participating securities (1) | (427 | ) | (418 | ) | ||||
Numerator for basic and diluted income (loss) from continuing operations available to common unitholders | 7,635 | (3,614 | ) | |||||
Income from discontinued operations | 90,492 | 2,202 | ||||||
Numerator for basic and diluted net income (loss) available to common unitholders | $ | 98,127 | $ | (1,412 | ) | |||
Denominator: | ||||||||
Basic weighted average vested units outstanding | 83,928,993 | 76,803,743 | ||||||
Effect of dilutive securities | 2,015,532 | — | ||||||
Diluted weighted average vested units and common unit equivalents outstanding | 85,944,525 | 76,803,743 | ||||||
Basic earnings per unit: | ||||||||
Income (loss) from continuing operations available to common unitholders per unit | $ | 0.09 | $ | (0.05 | ) | |||
Income from discontinued operations per common unit | 1.08 | 0.03 | ||||||
Net income (loss) available to common unitholders per unit | $ | 1.17 | $ | (0.02 | ) | |||
Diluted earnings per unit: | ||||||||
Income (loss) from continuing operations available to common unitholders per unit | $ | 0.09 | $ | (0.05 | ) | |||
Income from discontinued operations per common unit | 1.05 | 0.03 | ||||||
Net income (loss) available to common unitholders per unit | $ | 1.14 | $ | (0.02 | ) | |||
________________________ | ||||||||
-1 | Participating securities include nonvested shares, certain time-based RSUs and vested market-measure RSUs. |
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation (Details) | 3 Months Ended | |
Mar. 31, 2014 | ||
Real Estate Properties [Line Items] | ' | |
Rentable square feet | 79,000 | |
Kilroy Realty Finance, Inc. [Member] | ' | |
Real Estate Properties [Line Items] | ' | |
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 1.00% | |
Development Properties [Member] | ' | |
Real Estate Properties [Line Items] | ' | |
Number of buildings | 6 | [1] |
Rentable square feet | 2,538,000 | [1] |
Office Properties [Member] | ' | |
Real Estate Properties [Line Items] | ' | |
Number of buildings | 107 | |
Rentable square feet | 13,305,145 | |
Number of Tenants | 527 | |
Percentage Occupied | 92.40% | |
[1] | Estimated rentable square feet upon completion. |
Organization_and_Basis_of_Pres4
Organization and Basis of Presentation (Details Textuals) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' |
Lease-Up Properties, Maximum Stabilized Occupacy, Percentage | 95.00% | ' | ' |
Percentage of general partnership interest owned by the company in the Operating Partnership | 97.90% | 97.80% | 97.60% |
Percentage of Common limited partnership interest owned by certain non-affiliated investors and certain directors and officers of the Company in the Operating Partnership | 2.10% | 2.20% | 2.40% |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $61,600,000 | $251,800,000 | ' |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 6,800,000 | 12,100,000 | ' |
Noncontrolling Interest in Variable Interest Entity | 4,885,000 | 4,885,000 | ' |
WASHINGTON | ' | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' |
Number of buildings | 13 | ' | ' |
Kilroy Realty Finance, Inc. [Member] | ' | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 1.00% | ' | ' |
Kilroy Realty, L.P. [Member] | ' | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' |
Percentage of limited partnership interest owned by Operating Partnership | 99.00% | ' | ' |
Real Estate Investment [Member] | ' | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $60,600,000 | $234,500,000 | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | ||
sqft | ||
Business Acquisition [Line Items] | ' | |
Business Acquisition, Date of Acquisition Agreement | 13-Mar-14 | |
Rentable square feet | 79,000 | |
401 Terry Avenue North, Seattle, WA [Member] | ' | |
Business Acquisition [Line Items] | ' | |
Number of buildings | 1 | |
Rentable square feet | 140,605 | |
Occupancy as of March 31, 2014 | 100.00% | |
Purchase price | 106,100,000 | |
Office Properties Acquisitions [Member] | ' | |
Business Acquisition [Line Items] | ' | |
Number of buildings | 1 | |
Assets | ' | |
Land and improvements | 22,500,000 | |
Buildings and improvements | 77,046,000 | [1] |
Deferred leasing costs and acquisition-related intangible assets | 11,199,000 | [2] |
Total assets acquired | 110,745,000 | |
Liabilities | ' | |
Deferred revenue and acquisition-related intangible liabilities | 4,620,000 | [3] |
Total liabilities assumed | 4,620,000 | |
Net assets and liabilities acquired | 106,125,000 | |
[1] | Represents buildings, building improvements and tenant improvements. | |
[2] | Represents in-place leases of approximately $9.3 million (with a weighted average amortization period of seven years) and leasing commissions of approximately $1.9 million (with a weighted average amortization period of seven years). | |
[3] | Represents below-market leases of approximately $4.6 million (with a weighted average amortization period of seven years). |
Acquisitions_Details_Textuals
Acquisitions (Details Textuals) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Business Acquisition [Line Items] | ' |
Below Market Lease, Acquired | $4,600,000 |
Acquired Finite-lived Intangible Liabilities, Weighted Average Useful Life | '7 years |
Deferred Leasing Costs [Member] | ' |
Business Acquisition [Line Items] | ' |
Deferred leasing costs and acquisition-related intangible assets | 1,900,000 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '7 years |
In-Place Leases [Member] | ' |
Business Acquisition [Line Items] | ' |
Deferred leasing costs and acquisition-related intangible assets | $9,300,000 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '7 years |
Deferred_Leasing_Costs_and_Acq2
Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Deferred Leasing Costs and Acquisition-related Intangible Assets, Net | ' | ' | ||
Total deferred leasing costs and acquisition-related intangible assets, net | $188,466 | $186,622 | ||
Acquisition-related Intangible Liabilities, Net | ' | ' | ||
Total acquisitions-related intangible liabilities, net | 51,278 | [1] | 49,776 | [1] |
Deferred Leasing Costs [Member] | ' | ' | ||
Deferred Leasing Costs and Acquisition-related Intangible Assets, Net | ' | ' | ||
Finite-lived intangible assets, gross | 183,813 | 178,720 | ||
Finite-lived intangible assets accumulated amortization | -68,152 | -63,246 | ||
Finite-lived intangible assets, net | 115,661 | 115,474 | ||
Above-Market Leases [Member] | ' | ' | ||
Deferred Leasing Costs and Acquisition-related Intangible Assets, Net | ' | ' | ||
Finite-lived intangible assets, gross | 27,351 | 27,635 | ||
Finite-lived intangible assets accumulated amortization | -15,489 | -14,283 | ||
Finite-lived intangible assets, net | 11,862 | [2] | 13,352 | |
In-Place Leases [Member] | ' | ' | ||
Deferred Leasing Costs and Acquisition-related Intangible Assets, Net | ' | ' | ||
Finite-lived intangible assets, gross | 104,643 | 100,318 | ||
Finite-lived intangible assets accumulated amortization | -44,175 | -42,999 | ||
Finite-lived intangible assets, net | 60,468 | 57,319 | ||
Below Market Ground Lease Obligation [Member] | ' | ' | ||
Deferred Leasing Costs and Acquisition-related Intangible Assets, Net | ' | ' | ||
Finite-lived intangible assets, gross | 490 | 490 | ||
Finite-lived intangible assets accumulated amortization | -15 | -13 | ||
Finite-lived intangible assets, net | 475 | [3] | 477 | |
Below Market Lease [Member] | ' | ' | ||
Acquisition-related Intangible Liabilities, Net | ' | ' | ||
FiniteLivedIntangibleLiabilitiesGross | 73,522 | 69,385 | ||
Accumulated amortization | -28,316 | -25,706 | ||
Acquisition-related Intangible Liabilities, net | 45,206 | [1],[4] | 43,679 | [1] |
Above-Market Ground Lease Obligation [Member] | ' | ' | ||
Acquisition-related Intangible Liabilities, Net | ' | ' | ||
FiniteLivedIntangibleLiabilitiesGross | 6,320 | 6,320 | ||
Accumulated amortization | -248 | -223 | ||
Acquisition-related Intangible Liabilities, net | $6,072 | [1],[5] | $6,097 | [1] |
[1] | Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets. | |||
[2] | Represents estimated annual amortization related to above-market operating leases. Amounts will be recorded as a decrease to rental income in the consolidated statements of operations. | |||
[3] | Represents estimated annual amortization related to below-market ground lease obligations. Amounts will be recorded as an increase to ground lease expense in the consolidated statements of operations. | |||
[4] | Represents estimated annual amortization related to below-market operating leases. Amounts will be recorded as an increase to rental income in the consolidated statements of operations. | |||
[5] | Represents estimated annual amortization related to above-market ground lease obligations. Amounts will be recorded as a decrease to ground lease expense in the consolidated statements of operations. |
Deferred_Leasing_Costs_and_Acq3
Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net (Details 1) (USD $) | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangible assets | $11,288 | $13,232 | ' | |||
Deferred Leasing Costs [Member] | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangible assets | 6,780 | [1] | 7,844 | [1] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | |||
Remaining 2014 | 20,006 | ' | ' | |||
2015 | 22,162 | ' | ' | |||
2016 | 19,351 | ' | ' | |||
2017 | 16,742 | ' | ' | |||
2018 | 13,416 | ' | ' | |||
Thereafter | 23,984 | ' | ' | |||
Finite-lived intangible assets, net | 115,661 | ' | 115,474 | |||
Above-Market Leases [Member] | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangible assets | 1,490 | [2] | 1,438 | [2] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | |||
Remaining 2014 | 3,830 | [3] | ' | ' | ||
2015 | 2,918 | [3] | ' | ' | ||
2016 | 1,891 | [3] | ' | ' | ||
2017 | 1,573 | [3] | ' | ' | ||
2018 | 973 | [3] | ' | ' | ||
Thereafter | 677 | [3] | ' | ' | ||
Finite-lived intangible assets, net | 11,862 | [3] | ' | 13,352 | ||
In-Place Leases [Member] | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangible assets | 6,136 | [1] | 7,458 | [1] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | |||
Remaining 2014 | 15,274 | ' | ' | |||
2015 | 13,562 | ' | ' | |||
2016 | 10,475 | ' | ' | |||
2017 | 8,774 | ' | ' | |||
2018 | 5,689 | ' | ' | |||
Thereafter | 6,694 | ' | ' | |||
Finite-lived intangible assets, net | 60,468 | ' | 57,319 | |||
Below Market Ground Lease Obligation [Member] | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangible assets | 0 | [4] | 2 | [4] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | |||
Remaining 2014 | 6 | [5] | ' | ' | ||
2015 | 8 | [5] | ' | ' | ||
2016 | 8 | [5] | ' | ' | ||
2017 | 8 | [5] | ' | ' | ||
2018 | 8 | [5] | ' | ' | ||
Thereafter | 437 | [5] | ' | ' | ||
Finite-lived intangible assets, net | 475 | [5] | ' | 477 | ||
Below Market Leases [Member] | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | |||
Amortization for the period related to acquistion-related liabilities | -3,093 | [6] | -3,485 | [6] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | |||
Remaining 2014 | -9,802 | [7] | ' | ' | ||
2015 | -9,577 | [7] | ' | ' | ||
2016 | -7,847 | [7] | ' | ' | ||
2017 | -6,780 | [7] | ' | ' | ||
2018 | -5,177 | [7] | ' | ' | ||
Thereafter | -6,023 | [7] | ' | ' | ||
Acquisition-related Intangible Liabilities, net | -45,206 | [7],[8] | ' | -43,679 | [8] | |
Above-Market Ground Lease Obligation [Member] | ' | ' | ' | |||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | |||
Amortization for the period related to acquistion-related liabilities | -25 | [9] | -25 | [9] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | |||
Remaining 2014 | -76 | [10] | ' | ' | ||
2015 | -101 | [10] | ' | ' | ||
2016 | -101 | [10] | ' | ' | ||
2017 | -101 | [10] | ' | ' | ||
2018 | -101 | [10] | ' | ' | ||
Thereafter | -5,592 | [10] | ' | ' | ||
Acquisition-related Intangible Liabilities, net | ($6,072) | [10],[8] | ' | ($6,097) | [8] | |
[1] | The amortization of deferred leasing costs related to lease incentives is recorded to rental income and other deferred leasing costs and in-place leases is recorded to depreciation and amortization expense in the consolidated statements of operations for the periods presented. | |||||
[2] | The amortization of above-market operating leases is recorded as a decrease to rental income in the consolidated statements of operations for the periods presented. | |||||
[3] | Represents estimated annual amortization related to above-market operating leases. Amounts will be recorded as a decrease to rental income in the consolidated statements of operations. | |||||
[4] | The amortization of the below-market ground lease obligation is recorded as an increase to ground lease expense in the consolidated statements of operations for the periods presented. | |||||
[5] | Represents estimated annual amortization related to below-market ground lease obligations. Amounts will be recorded as an increase to ground lease expense in the consolidated statements of operations. | |||||
[6] | The amortization of below-market operating leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented. | |||||
[7] | Represents estimated annual amortization related to below-market operating leases. Amounts will be recorded as an increase to rental income in the consolidated statements of operations. | |||||
[8] | Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets. | |||||
[9] | The amortization of the above-market ground lease obligation is recorded as a decrease to ground lease expense in the consolidated statements of operations for the periods presented. | |||||
[10] | Represents estimated annual amortization related to above-market ground lease obligations. Amounts will be recorded as a decrease to ground lease expense in the consolidated statements of operations. |
Receivables_Details
Receivables (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Receivables, net | ' | ' |
Current receivables | $13,226 | $12,866 |
Allowance for uncollectible tenant receivables | -2,134 | -2,123 |
Current receivables, net | 11,092 | 10,743 |
Deferred Rent Receivables, net | ' | ' |
Deferred rent receivables | 132,740 | 129,198 |
Allowance for deferred rent receivables | -1,990 | -2,075 |
Deferred rent receivables, net | $130,750 | $127,123 |
Secured_and_Unsecured_Debt_of_2
Secured and Unsecured Debt of the Operating Partnership (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured Debt | $556,946 | [1] | $560,434 | [1] |
Secured Debt [Member] | 4.48% Mortgage Payable due July 1, 2027 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Annual Stated Interest Rate | 4.48% | [2] | ' | |
Effective interest rate | 4.48% | [2],[3] | ' | |
Maturity Date | 1-Jul-27 | ' | ||
Secured Debt | 97,000 | [1],[4] | 97,000 | [1],[4] |
Kilroy Realty, L.P. [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured Debt | 556,946 | 560,434 | ||
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | 4.27% Mortgage Payable due Feb. 01, 2018 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Annual Stated Interest Rate | 4.27% | [2] | ' | |
Effective interest rate | 4.27% | [2],[3] | ' | |
Maturity Date | 1-Feb-18 | ' | ||
Secured Debt | 132,539 | [1] | 133,117 | [1] |
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | 6.05% Mortgage Payable Due June 1, 2019 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Annual Stated Interest Rate | 6.05% | [2] | ' | |
Effective interest rate | 3.50% | [2],[3] | ' | |
Maturity Date | 1-Jun-19 | ' | ||
Secured Debt | 91,696 | [1],[4] | 92,502 | [1],[4] |
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | 6.51% Mortgage Payable due Feb. 01, 2017 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Annual Stated Interest Rate | 6.51% | [2] | ' | |
Effective interest rate | 6.51% | [2],[3] | ' | |
Maturity Date | 1-Feb-17 | ' | ||
Secured Debt | 67,415 | [1] | 67,663 | [1] |
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | 5.23% Mortgage Payable due Jan. 01, 2016 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Annual Stated Interest Rate | 5.23% | [2] | ' | |
Effective interest rate | 3.50% | [2],[3] | ' | |
Maturity Date | 1-Jan-16 | ' | ||
Secured Debt | 54,120 | [1],[4] | 54,570 | [1],[4] |
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | 5.57% Morgage Payable Due Feb. 11, 2016 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Annual Stated Interest Rate | 5.57% | [2] | ' | |
Effective interest rate | 3.25% | [2],[3] | ' | |
Maturity Date | 11-Feb-16 | ' | ||
Secured Debt | 41,300 | [1],[4] | 41,654 | [1],[4] |
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | 5.09% Mortgage Payable due Aug. 7, 2015 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Annual Stated Interest Rate | 5.09% | [2] | ' | |
Effective interest rate | 3.50% | [2],[3] | ' | |
Maturity Date | 7-Aug-15 | ' | ||
Secured Debt | 34,712 | [1],[4] | 34,845 | [1],[4] |
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | 4.94% Mortgage Payable due April 15, 2015 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Annual Stated Interest Rate | 4.94% | [2] | ' | |
Effective interest rate | 4.00% | [2],[3] | ' | |
Maturity Date | 15-Apr-15 | ' | ||
Secured Debt | 27,307 | [1],[4] | 27,641 | [1],[4] |
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | 7.15% Mortgage Payable due May 01, 2017 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Annual Stated Interest Rate | 7.15% | [2] | ' | |
Effective interest rate | 7.15% | [2],[3] | ' | |
Maturity Date | 1-May-17 | ' | ||
Secured Debt | 8,387 | [1] | 8,972 | [1] |
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | Municipal Bonds [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured Debt | $2,470 | [1] | $2,470 | [1] |
[1] | Amounts reported include the amounts of unamortized debt premiums and discounts for the periods presented. | |||
[2] | All interest rates presented are fixed-rate interest rates. | |||
[3] | This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of discounts/premiums, excluding debt issuance costs. | |||
[4] | The secured debt and the related properties that secure the debt are held in a special purpose entity and the properties are not available to satisfy the debts and other obligations of the Company or the Operating Partnership. |
Secured_and_Unsecured_Debt_of_3
Secured and Unsecured Debt of the Operating Partnership (Details 1) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | ' | |
Unsecured debt | $1,431,217,000 | ' | $1,431,132,000 | |
Balance and significant terms of the Exchangeable Notes outstanding | ' | ' | ' | |
Net carrying amount of liability component | 169,528,000 | ' | 168,372,000 | |
Per Share Average Trading Price Of Companys Common Stock On Stock Exchange Abstract | ' | ' | ' | |
Average trading price of the Companys stock | $55.18 | $51.14 | ' | |
Kilroy Realty, L.P. [Member] | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | |
Unsecured debt | 1,431,217,000 | ' | 1,431,132,000 | |
Balance and significant terms of the Exchangeable Notes outstanding | ' | ' | ' | |
Net carrying amount of liability component | 169,528,000 | ' | 168,372,000 | |
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | 6.05% Mortgage Payable Due June 1, 2019 [Member] | ' | ' | ' | |
Balance and significant terms of the Exchangeable Notes outstanding | ' | ' | ' | |
Maturity Date | 1-Jun-19 | ' | ' | |
Stated coupon rate | 6.05% | [1] | ' | ' |
Effective interest rate | 3.50% | [1],[2] | ' | ' |
Kilroy Realty, L.P. [Member] | Exchangeable Notes [Member] | ' | ' | ' | |
Interest Expense for the Exchangeable Notes | ' | ' | ' | |
Contractual interest payments | 1,833,000 | 1,833,000 | ' | |
Amortization of discount | 1,156,000 | 1,078,000 | ' | |
Interest expense attributable to the Exchangeable Notes | 2,989,000 | 2,911,000 | ' | |
Kilroy Realty, L.P. [Member] | Exchangeable Notes [Member] | 4.25% Exchangeable Notes [Member] | ' | ' | ' | |
Balance and significant terms of the Exchangeable Notes outstanding | ' | ' | ' | |
Net carrying amount of liability component | 169,528,000 | ' | 168,372,000 | |
Per Share Average Trading Price Of Companys Common Stock On Stock Exchange Abstract | ' | ' | ' | |
Fair Value Of Shares Upon Conversion If Exchangeable Notes Were Converted On Specified Date | 270,602,000 | 247,300,000 | ' | |
Debt Instrument, Convertible, If-converted Value in Excess of Principal | 98,102,000 | 74,800,000 | ' | |
Capped call transactions | ' | ' | ' | |
Referenced shares of common stock | 4,800,796 | ' | ' | |
Exchange price including effect of capped calls | 42.81 | ' | ' | |
Kilroy Realty, L.P. [Member] | Exchangeable Debt [Member] | 4.25% Exchangeable Notes [Member] | ' | ' | ' | |
Balance and significant terms of the Exchangeable Notes outstanding | ' | ' | ' | |
Principal amount | 172,500,000 | ' | 172,500,000 | |
Unamortized discount | -2,972,000 | ' | -4,128,000 | |
Carrying amount of equity component | $19,835,000 | ' | ' | |
Stated coupon rate | 4.25% | [3] | ' | ' |
Effective interest rate | 7.13% | [4] | ' | ' |
Exchange rate per $1,000 principal value of the Exchangeable Notes, as adjusted | 27.8307 | [5] | ' | ' |
Exchange price, as adjusted | $35.93 | [5] | ' | ' |
Number of Shares on which aggregate consideration to be delivered upon conversion is determined | 4,800,796 | [5] | ' | ' |
Minimum percentage of exchange price | 130.00% | ' | ' | |
[1] | All interest rates presented are fixed-rate interest rates. | |||
[2] | This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of discounts/premiums, excluding debt issuance costs. | |||
[3] | Interest on the 4.25% Exchangeable Notes is payable semi-annually in arrears on May 15th and November 15th of each year. | |||
[4] | The rate at which we record interest expense for financial reporting purposes, which reflects the amortization of the discounts on the 4.25%Â Exchangeable Notes. This rate represents our conventional debt borrowing rate at the date of issuance. | |||
[5] | The exchange rate, exchange price and the number of shares to be delivered upon conversion are subject to adjustment under certain circumstances including increases in our common dividends. |
Unsecured_Senior_Notes_Details
Unsecured Senior Notes (Details 2) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | |
Unsecured debt | $1,431,217,000 | $1,431,132,000 | |
Exchangeable senior notes, net | 169,528,000 | 168,372,000 | |
Kilroy Realty, L.P. [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Unsecured debt | 1,431,217,000 | 1,431,132,000 | |
Exchangeable senior notes, net | 169,528,000 | 168,372,000 | |
Kilroy Realty, L.P. [Member] | Revolving Credit Facility [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt Instrument, Contingent Additional Borrowings | 200,000,000 | ' | |
Debt Instrument, Basis Spread on Variable Rate | 1.45% | ' | |
Kilroy Realty, L.P. [Member] | Three Point Eight Zero Zero Percent Unsecured Senior Note [Member] | Senior Notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Unsecured debt | 299,913,000 | 299,910,000 | |
Stated coupon rate | 3.80% | ' | |
Debt Instrument, Unamortized Discount | -87,000 | -90,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 3.80% | [1],[2] | ' |
Debt Instrument, Face Amount | 300,000,000 | 300,000,000 | |
Kilroy Realty, L.P. [Member] | Exchangeable Note Two [Member] | Exchangeable Debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Minimum percentage of exchange price | 130.00% | ' | |
Debt Instrument, Convertible, Number of Equity Instruments | 4,800,796 | [3] | ' |
Debt Instrument, Convertible, Conversion Ratio | 27.8307 | [3] | ' |
Debt Instrument, Convertible, Stock Price Trigger | $35.93 | [3] | ' |
Debt Instrument, Convertible, Carrying Amount of Equity Component | 19,835,000 | ' | |
Principal amount | 172,500,000 | 172,500,000 | |
Stated coupon rate | 4.25% | [4] | ' |
Debt Instrument, Unamortized Discount | 2,972,000 | 4,128,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 7.13% | [5] | ' |
Kilroy Realty, L.P. [Member] | Exchangeable Note Two [Member] | Convertible Debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Exchangeable senior notes, net | 169,528,000 | 168,372,000 | |
Kilroy Realty, L.P. [Member] | Six Point Four Five Percent Unsecured Senior Notes due Aug 4 2014 [Member] | Senior Notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Unsecured debt | 83,000,000 | 83,000,000 | |
Maturity Date | 4-Aug-14 | ' | |
Stated coupon rate | 6.45% | ' | |
Debt Instrument, Interest Rate, Effective Percentage | 6.45% | ' | |
Kilroy Realty, L.P. [Member] | One Hundred Fifty Million Term Loan Facility [Member] | Line of Credit [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt Instrument, Contingent Additional Borrowings | 100,000,000 | ' | |
Unsecured debt | 150,000,000 | 150,000,000 | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ' | |
Kilroy Realty, L.P. [Member] | Four Point Eight Percent Unsecured Senior Notes Due July Fifteen Two Thousand Eighteen [Member] | Senior Notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Unsecured debt | 324,680,000 | 324,661,000 | |
Stated coupon rate | 4.80% | ' | |
Debt Instrument, Unamortized Discount | -320,000 | -339,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 4.83% | [1],[6] | ' |
Debt Instrument, Face Amount | 325,000,000 | 325,000,000 | |
Kilroy Realty, L.P. [Member] | Six Point Six Two Five Percent Unsecured Senior Notes due June 1 2020 [Member] | Senior Notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Unsecured debt | 248,687,000 | 248,633,000 | |
Stated coupon rate | 6.63% | ' | |
Debt Instrument, Unamortized Discount | -1,313,000 | -1,367,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 6.74% | [1],[7] | ' |
Debt Instrument, Face Amount | 250,000,000 | 250,000,000 | |
Kilroy Realty, L.P. [Member] | Five Percent Unsecured Senior Notes due Nov3 2015 [Member] | Senior Notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Unsecured debt | 324,937,000 | 324,927,000 | |
Stated coupon rate | 5.00% | ' | |
Debt Instrument, Unamortized Discount | -63,000 | -73,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 5.01% | [1],[8] | ' |
Debt Instrument, Face Amount | $325,000,000 | $325,000,000 | |
[1] | This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of initial issuance discounts, excluding debt issuance costs. | ||
[2] | Interest on the 3.800%Â unsecured senior notes is payable semi-annually in arrears on January 15th and July 15th of each year. | ||
[3] | The exchange rate, exchange price and the number of shares to be delivered upon conversion are subject to adjustment under certain circumstances including increases in our common dividends. | ||
[4] | Interest on the 4.25% Exchangeable Notes is payable semi-annually in arrears on May 15th and November 15th of each year. | ||
[5] | The rate at which we record interest expense for financial reporting purposes, which reflects the amortization of the discounts on the 4.25%Â Exchangeable Notes. This rate represents our conventional debt borrowing rate at the date of issuance. | ||
[6] | Interest on the 4.800%Â unsecured senior notes is payable semi-annually in arrears on January 15th and July 15th of each year. | ||
[7] | Interest on the 6.625% unsecured senior notes is payable semi-annually in arrears on June 1st and December 1st of each year. | ||
[8] | Interest on the 5.000% unsecured senior notes is payable semi-annually in arrears on May 3rd and November 3rd of each year. |
Unsecured_Revolving_Credit_Fac
Unsecured Revolving Credit Facility (Details 3) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | |||
Line of Credit Facility [Line Items] | ' | ' | ||
Unsecured debt | $1,431,217,000 | $1,431,132,000 | ||
Terms of the Credit Facility | ' | ' | ||
Unsecured line of credit | 0 | 45,000,000 | ||
Kilroy Realty, L.P. [Member] | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Unsecured debt | 1,431,217,000 | 1,431,132,000 | ||
Terms of the Credit Facility | ' | ' | ||
Unsecured line of credit | 0 | 45,000,000 | ||
Kilroy Realty, L.P. [Member] | Revolving Credit Facility [Member] | ' | ' | ||
Terms of the Credit Facility | ' | ' | ||
Unsecured line of credit | 0 | 45,000,000 | ||
Remaining borrowing capacity | 500,000,000 | 455,000,000 | ||
Total borrowing capacity | 500,000,000 | [1] | 500,000,000 | [1] |
Interest rate | 0.00% | 1.62% | [2] | |
Facility fee - annual rate | 0.30% | [3] | ' | |
Maturity date | 3-Apr-17 | [4] | ' | |
Debt Instrument, Contingent Additional Borrowings | 200,000,000 | ' | ||
Debt Instrument, Basis Spread on Variable Rate | 1.45% | ' | ||
Kilroy Realty, L.P. [Member] | Line of Credit [Member] | ' | ' | ||
Terms of the Credit Facility | ' | ' | ||
Unamortized Debt Issuance Cost | 4,500,000 | ' | ||
One Hundred Fifty Million Term Loan Facility [Member] | Kilroy Realty, L.P. [Member] | Line of Credit [Member] | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Unsecured debt | 150,000,000 | 150,000,000 | ||
Terms of the Credit Facility | ' | ' | ||
Debt Instrument, Contingent Additional Borrowings | $100,000,000 | ' | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ' | ||
[1] | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $200.0Â million under an accordion feature under the terms of the revolving credit facility. | |||
[2] | The revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.450% as of both March 31, 2014 and December 31, 2013. | |||
[3] | The facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, from 2010 to 2012 we incurred debt origination and legal costs of which, as of March 31, 2014, approximately $4.5 million remains to be amortized through the maturity date of the revolving credit facility. | |||
[4] | Under the terms of the revolving credit facility, we may exercise an option to extend the maturity date by one year. |
Debt_Maturities_Details_4
Debt Maturities (Details 4) (Debt [Member], Kilroy Realty, L.P. [Member], USD $) | Mar. 31, 2014 | |
Debt [Member] | Kilroy Realty, L.P. [Member] | ' | |
Stated debt maturities and scheduled amortization payments, excluding debt discounts | ' | |
Remaining 2014 | $262,932,000 | |
2015 | 395,104,000 | |
2016 | 249,431,000 | |
2017 | 71,748,000 | |
2018 | 451,728,000 | |
Thereafter | 718,011,000 | |
Total | 2,148,954,000 | [1] |
Unamortized discount (premium) | ($8,700,000) | |
[1] | Includes gross principal balance of outstanding debt before impact of net unamortized premiums totaling approximately $8.7 million. |
Secured_and_Unsecured_Debt_of_4
Secured and Unsecured Debt of the Operating Partnership Capitalized Interest and Loan Fees (Details 5) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Capitalized Interest and Loan Fees [Line Items] | ' | ' |
Interest Expense | $17,252 | $19,734 |
Kilroy Realty, L.P. [Member] | ' | ' |
Capitalized Interest and Loan Fees [Line Items] | ' | ' |
Gross interest expense | 28,034 | 27,466 |
Capitalized interest | -10,782 | -7,732 |
Interest Expense | $17,252 | $19,734 |
Noncontrolling_Interests_on_th1
Noncontrolling Interests on the Company's Consolidated Financial Statements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
Noncontrolling Interest [Abstract] | ' | ' | ' |
Percentage of general partnership interest owned by the company in the Operating Partnership | 97.90% | 97.80% | 97.60% |
Percentage of Common limited partnership interest owned by certain non-affiliated investors and certain directors and officers of the Company in the Operating Partnership | 2.10% | 2.20% | 2.40% |
Common units outstanding held by common limited partners | 1,804,200 | 1,805,200 | 1,826,503 |
Common stock, par value | $0.01 | ' | ' |
Aggregate value upon redemption of outstanding noncontrolling common units | $105,400,000 | $90,800,000 | ' |
Noncontrolling Interest in Variable Interest Entity | $4,885,000 | $4,885,000 | ' |
Stockholders_Equity_of_the_Com1
Stockholders' Equity of the Company (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Common Stock [Member] | Common Stock [Member] | Issuance of Equity - at the market offering [Member] | Issuance of Equity under ATM Program [Member] | Issuance of Equity under ATM Program [Member] | |||
Common Stock [Member] | Common Stock [Member] | ||||||
Common Stock of the Company [Abstract] | ' | ' | ' | ' | ' | ' | ' |
At the Market Stock Offering Program Aggregate Value Of Common Stock | ' | ' | ' | ' | ' | $200,000,000 | ' |
Net proceeds from issuance of common stock | 0 | 23,395,000 | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | 82,218,332 | 82,153,944 | ' | 2,183,261 | ' |
At Market Stock Aggregate Gross Sales Price of Common Stock | ' | ' | ' | ' | 105,300,000 | ' | ' |
At the Market Stock Offering Program Remained Available For Issuance | ' | ' | ' | ' | ' | ' | $94,700,000 |
Partners_Capital_of_the_Operat2
Partners' Capital of the Operating Partnership (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
General Partners' Capital Account [Abstract] | ' | ' | ' |
Net proceeds from issuance of common stock | $0 | $23,395 | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 97.90% | 97.60% | 97.80% |
Common units held by limited partners | 1,804,200 | 1,826,503 | 1,805,200 |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 2.10% | 2.40% | 2.20% |
Kilroy Realty, L.P. [Member] | Capital Units [Member] | ' | ' | ' |
General Partners' Capital Account [Abstract] | ' | ' | ' |
General Partners' Capital Account, Units Outstanding | 82,218,332 | 75,349,705 | 82,153,944 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details Textuals) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 29, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 236,604 | ' | ' |
Share Price | $58.58 | ' | $51.64 |
Share-based Compensation Capitalized | $0.40 | $0.20 | ' |
Share-based Compensation, Unrecognized costs | 36.9 | ' | ' |
Share-based Compensation, Unrecognized costs, weighted-average vesting period | '2 years 7 months | ' | ' |
Allocated Share-based Compensation Expense | 2.9 | 2.4 | ' |
2014 RSU Grant [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation, Unrecognized costs | 13.6 | ' | ' |
Market Measure-Based Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $63.44 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 32.00% | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.79% | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 119,098 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '2 years 9 months | ' | ' |
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Grants In Period, Grant Date Fair Value | 7.1 | ' | ' |
Time-Based Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 117,506 | ' | ' |
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Grants In Period, Grant Date Fair Value | $6.10 | ' | ' |
Shareholder Meeting Date May 22, 2014 [Domain] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Requested | 7,120,000 | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details 1) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Other Commitment | $733.60 |
Fair_Value_Measurements_and_Di2
Fair Value Measurements and Disclosures (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Fair value adjustment of marketable securities and deferred compensation plan liability | ' | ' | ' | ||
Net gain on marketable securities | $154 | $356 | ' | ||
Trading Securities | 11,001 | ' | 10,008 | ||
Fair Value (Level 1) [Member] | ' | ' | ' | ||
Assets and Liabilities Reported at Fair Value | ' | ' | ' | ||
Marketable securities | $11,001 | [1],[2] | ' | $10,008 | [1],[2] |
[1] | The marketable securities are held in a limited rabbi trust. | ||||
[2] | Based on quoted prices in active markets for identical securities. |
Fair_Value_Measurements_and_Di3
Fair Value Measurements and Disclosures (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Liabilities | ' | ' | ||
Secured Debt | $556,946,000 | [1] | $560,434,000 | [1] |
Exchangeable senior notes, net | 169,528,000 | 168,372,000 | ||
Unsecured debt | 1,431,217,000 | 1,431,132,000 | ||
Unsecured line of credit | 0 | 45,000,000 | ||
Carrying Value [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Secured Debt | 556,946,000 | 560,434,000 | ||
Exchangeable senior notes, net | 169,528,000 | 168,372,000 | ||
Unsecured debt | 1,431,217,000 | 1,431,132,000 | ||
Unsecured line of credit | 0 | 45,000,000 | ||
Fair Value [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Secured Debt | 567,107,000 | [2] | 568,760,000 | [2] |
Exchangeable senior notes, net | 175,403,000 | [2] | 178,190,000 | [2] |
Unsecured debt | 1,506,815,000 | [3] | 1,523,052,000 | [3] |
Unsecured line of credit | 0 | [2] | 45,012,000 | [2] |
Fair Value (Level 2) [Member] | Carrying Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 557,700,000 | 557,700,000 | ||
Fair Value (Level 2) [Member] | Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 585,600,000 | 593,700,000 | ||
Unsecured Debt [Member] | Fair Value (Level 1) [Member] | Carrying Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 873,500,000 | 873,500,000 | ||
Unsecured Debt [Member] | Fair Value (Level 1) [Member] | Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | $921,200,000 | $929,300,000 | ||
[1] | Amounts reported include the amounts of unamortized debt premiums and discounts for the periods presented. | |||
[2] | Fair value calculated using Level II inputs which are based on model-derived valuations in which significant inputs and significant value drivers are observable in active markets. | |||
[3] | Fair value calculated using Level I and Level II inputs. Level I inputs are based on quoted prices for identical instruments in active markets. The carrying value and fair value of the Level I instruments was $873.5 million and $921.2 million, respectively, as of March 31, 2014. The carrying value and fair value of the Level I instruments as of December 31, 2013, was $873.5 million and $929.3 million, respectively. The carrying value and fair value of the Level II instruments was $557.7 million and $585.6 million, respectively, as of March 31, 2014. The carrying value and fair value of the Level II instruments as of December 31, 2013, was $557.7 million and $593.7 million, respectively. |
Other_Significant_Events_Detai
Other Significant Events (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | ||
sqft | |||
Other Significant Noncash Transactions [Line Items] | ' | ' | |
Net Rentable Area | 79,000 | ' | |
Lease termination fee, total contract amount | $5,700,000 | ' | |
Amortization of Intangible Assets | 11,288,000 | 13,232,000 | |
Lease Termination | ' | ' | |
Other Significant Noncash Transactions [Line Items] | ' | ' | |
Lease Termination Fee, amount recognized in the quarter | 1,700,000 | ' | |
Amortization of Intangible Assets | $400,000 | [1] | ' |
[1] | The amortization of the below-market ground lease obligation is recorded as an increase to ground lease expense in the consolidated statements of operations for the periods presented. |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
sqft | San Diego Properties, San Diego, CA [Member] | 10850 Via Frontera San Diego CA [Member] | Restricted cash [Member] | Restricted cash [Member] | |||
building | |||||||
sqft | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | |
Proceeds from Sale of Real Estate Held-for-investment | $309,824 | $0 | ' | ' | $15,300 | $32,200 | |
Number of buildings | ' | ' | 12 | [1],[2] | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | |
Undeveloped land and construction in progress | ' | ' | ' | 28,030 | ' | ' | |
Prepaid expenses and other assets, net | ' | ' | ' | 242 | ' | ' | |
Real estate and other assets held for sale, net | ' | ' | ' | 28,272 | ' | ' | |
Accounts payable, accrued Liabilities and other liabilities | ' | ' | ' | 634 | ' | ' | |
Liabilities of real estate assets held for sale | ' | ' | ' | 634 | ' | ' | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | |
Rental income | 458 | 5,773 | ' | ' | ' | ' | |
Tenant reimbursements | 66 | 757 | ' | ' | ' | ' | |
Other property income | 9 | 3 | ' | ' | ' | ' | |
Total revenues | 533 | 6,533 | ' | ' | ' | ' | |
Property expenses | 87 | 968 | ' | ' | ' | ' | |
Real estate taxes | 69 | 673 | ' | ' | ' | ' | |
Depreciation and amortization | 0 | 2,690 | ' | ' | ' | ' | |
Total expenses | 156 | 4,331 | ' | ' | ' | ' | |
Income from discontinued operations | 377 | 2,202 | ' | ' | ' | ' | |
Net gain on dispositions of discontinued operations | 90,115 | 0 | ' | ' | ' | ' | |
Total income from discontinued operations | $90,492 | $2,202 | ' | ' | ' | ' | |
Net Rentable Area | 79,000 | ' | 1,049,035 | [1],[2] | ' | ' | ' |
[1] | The San Diego Properties included the following: 10020 Pacific Mesa Boulevard, 6055 Lusk Avenue, 5010 and 5005 Wateridge Vista Drive, 15435 and 15445 Innovation Drive, and 15051, 15073, 15231, 15253, 15333 and 15378 Avenue of Science. | ||||||
[2] | These properties were held for sale as of December 31, 2013. |
Net_Loss_Income_Available_to_C1
Net (Loss) Income Available to Common Stockholders Per Share of the Company (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Numerator: | ' | ' | ||
Income from continuing operations | $11,440 | $186 | ||
(Income) loss from continuing operations attributable to noncontrolling common units of the Operating Partnership | -172 | 72 | ||
Preferred distributions | -3,313 | -3,313 | ||
Allocation to participating securities | -427 | [1] | -418 | [1] |
Numerator for basic and diluted income (loss) from continuing operations available to common stockholders | 7,528 | -3,473 | ||
Income from discontinued operations | 90,492 | 2,202 | ||
Income from discontinued operations attributable to noncontrolling common units of the Operating Partnership | -1,915 | -50 | ||
Numerator for basic and diluted net income (loss) available to common stockholders | 96,105 | -1,321 | ||
Denominator: | ' | ' | ||
Weighted average common shares outstanding – basic (Note 14) | 82,124,538 | 74,977,240 | ||
Effect of dilutive securities | 2,015,532 | 0 | ||
Weighted average common shares outstanding-diluted | 84,140,070 | 74,977,240 | ||
Basic earnings per share: | ' | ' | ||
Income (loss) from continuing operations available to common stockholders per common share – basic (Note 14) | $0.09 | ($0.05) | ||
Income from discontinued operations per common share | $1.08 | $0.03 | ||
Net income (loss) available to common stockholders per share-basic | $1.17 | ($0.02) | ||
Diluted earnings per share: | ' | ' | ||
Income (loss) from continuing operations available to common stockholders per common share – diluted (Note 14) | $0.09 | ($0.05) | ||
Income from discontinued operations per common share | $1.05 | $0.03 | ||
Net income (loss) available to common stockholders per share-diluted | $1.14 | ($0.02) | ||
Stock options outstanding | 1,520,500 | ' | ||
Kilroy Realty, L.P. [Member] | ' | ' | ||
Numerator: | ' | ' | ||
Income from continuing operations | 11,440 | 186 | ||
Preferred distributions | -3,313 | -3,313 | ||
Allocation to participating securities | -427 | [1] | -418 | [1] |
Numerator for basic and diluted income (loss) from continuing operations available to common stockholders | 7,635 | -3,614 | ||
Income from discontinued operations | 90,492 | 2,202 | ||
Numerator for basic and diluted net income (loss) available to common stockholders | $98,127 | ($1,412) | ||
Denominator: | ' | ' | ||
Weighted average common shares outstanding – basic (Note 14) | 83,928,993 | 76,803,743 | ||
Effect of dilutive securities | 2,015,532 | 0 | ||
Weighted average common shares outstanding-diluted | 85,944,525 | 76,803,743 | ||
Basic earnings per share: | ' | ' | ||
Income (loss) from continuing operations available to common stockholders per common share – basic (Note 14) | $0.09 | ($0.05) | ||
Income from discontinued operations per common share | $1.08 | $0.03 | ||
Net income (loss) available to common stockholders per share-basic | $1.17 | ($0.02) | ||
Diluted earnings per share: | ' | ' | ||
Income (loss) from continuing operations available to common stockholders per common share – diluted (Note 14) | $0.09 | ($0.05) | ||
Income from discontinued operations per common share | $1.05 | $0.03 | ||
Net income (loss) available to common stockholders per share-diluted | $1.14 | ($0.02) | ||
[1] | Participating securities include nonvested shares, certain time-based RSUs and vested market-measure RSUs. |
Net_Income_Loss_Available_to_C3
Net Income (Loss) Available to Common Unitholders Per Unit of the Operating Partnership (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Numerator: | ' | ' | ||
Income from continuing operations | $11,440 | $186 | ||
Preferred distributions | -3,313 | -3,313 | ||
Allocation to participating securities | -427 | [1] | -418 | [1] |
Numerator for basic and diluted income (loss) from continuing operations available to common unitholders | 7,528 | -3,473 | ||
Income from discontinued operations | 90,492 | 2,202 | ||
Numerator for basic and diluted net income (loss) available to common unitholders | 96,105 | -1,321 | ||
Denominator: | ' | ' | ||
Weighted average common units outstanding - basic (Note 14) | 82,124,538 | 74,977,240 | ||
Effect of dilutive securities | 2,015,532 | 0 | ||
Weighted average common units outstanding - diluted (Note 14) | 84,140,070 | 74,977,240 | ||
Basic earnings per unit: | ' | ' | ||
Income (loss) from continuing operations available to common unitholders per common unit - basic (Note 15) | $0.09 | ($0.05) | ||
Income from discontinued operations per common unit | $1.08 | $0.03 | ||
Net income (loss) available to common unitholders per unit-basic (Note 14) | $1.17 | ($0.02) | ||
Diluted earnings per unit: | ' | ' | ||
Income (loss) from continuing operations available to common unitholders per common unit - diluted (Note 15) | $0.09 | ($0.05) | ||
Income from discontinued operations per common unit | $1.05 | $0.03 | ||
Net income (loss) available to common unitholders per unit-diluted (Note 14) | $1.14 | ($0.02) | ||
Stock options outstanding | 1,520,500 | ' | ||
Kilroy Realty, L.P. [Member] | ' | ' | ||
Numerator: | ' | ' | ||
Income from continuing operations | 11,440 | 186 | ||
Income from continuing operations attributable to noncontrolling interests in consolidated subsidiaries | -65 | -69 | ||
Preferred distributions | -3,313 | -3,313 | ||
Allocation to participating securities | -427 | [1] | -418 | [1] |
Numerator for basic and diluted income (loss) from continuing operations available to common unitholders | 7,635 | -3,614 | ||
Income from discontinued operations | 90,492 | 2,202 | ||
Numerator for basic and diluted net income (loss) available to common unitholders | $98,127 | ($1,412) | ||
Denominator: | ' | ' | ||
Weighted average common units outstanding - basic (Note 14) | 83,928,993 | 76,803,743 | ||
Effect of dilutive securities | 2,015,532 | 0 | ||
Weighted average common units outstanding - diluted (Note 14) | 85,944,525 | 76,803,743 | ||
Basic earnings per unit: | ' | ' | ||
Income (loss) from continuing operations available to common unitholders per common unit - basic (Note 15) | $0.09 | ($0.05) | ||
Income from discontinued operations per common unit | $1.08 | $0.03 | ||
Net income (loss) available to common unitholders per unit-basic (Note 14) | $1.17 | ($0.02) | ||
Diluted earnings per unit: | ' | ' | ||
Income (loss) from continuing operations available to common unitholders per common unit - diluted (Note 15) | $0.09 | ($0.05) | ||
Income from discontinued operations per common unit | $1.05 | $0.03 | ||
Net income (loss) available to common unitholders per unit-diluted (Note 14) | $1.14 | ($0.02) | ||
[1] | Participating securities include nonvested shares, certain time-based RSUs and vested market-measure RSUs. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Apr. 16, 2014 | Apr. 09, 2014 | |
Subsequent Event [Member] | 10850 Via Frontera San Diego CA [Member] | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Dispositions Sales Price | ' | ' | ' | $33,100,000 |
Aggregate dividends, distributions, and dividend equivalents paid to common stockholders and common unitholders | $29,561,000 | $26,956,000 | $29,800,000 | ' |