Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 25, 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 | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 83,179,470 |
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 | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
REAL ESTATE ASSETS: | ' | ' | ||
Land and improvements (Note 2) | $675,489 | $657,491 | ||
Buildings and improvements (Note 2) | 3,720,863 | 3,590,699 | ||
Undeveloped land and construction in progress (Note 2) | 1,270,675 | 1,016,757 | ||
Total real estate assets held for investment | 5,667,027 | 5,264,947 | ||
Accumulated depreciation and amortization | -885,580 | -818,957 | ||
Total real estate assets held for investment, net ($170,692 and $234,532 of VIE, respectively, Note 1) | 4,781,447 | 4,445,990 | ||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET (Note 13) | 0 | 213,100 | ||
CASH AND CASH EQUIVALENTS | 24,571 | 35,377 | ||
RESTRICTED CASH (Notes 1 and 13) | 93,522 | 49,780 | ||
MARKETABLE SECURITIES (Note 11) | 11,747 | 10,008 | ||
CURRENT RECEIVABLES, NET (Note 4) | 10,588 | 10,743 | ||
DEFERRED RENT RECEIVABLES, NET (Note 4) | 134,269 | 127,123 | ||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET (Notes 2 and 3) | 178,841 | 186,622 | ||
DEFERRED FINANCING COSTS, NET | 16,978 | 16,502 | ||
PREPAID EXPENSES AND OTHER ASSETS, NET | 21,829 | 15,783 | ||
TOTAL ASSETS | 5,273,792 | 5,111,028 | ||
LIABILITIES: | ' | ' | ||
Secured debt (Notes 5 and 11) | 553,427 | [1] | 560,434 | [1] |
Exchangeable senior notes, net (Notes 5 and 11) | 170,704 | 168,372 | ||
Unsecured debt, net (Notes 5 and 11) | 1,431,301 | 1,431,132 | ||
Unsecured line of credit (Notes 5 and 11) | 90,000 | 45,000 | ||
Accounts payable, accrued expenses and other liabilities | 215,535 | 198,467 | ||
Accrued distributions (Note 16) | 31,730 | 31,490 | ||
Deferred revenue and acquisition-related intangible liabilities, net (Notes 2 and 3) | 114,670 | 101,286 | ||
Rents received in advance and tenant security deposits | 43,085 | 44,240 | ||
Liabilities of real estate assets held for sale (Note 13) | 0 | 14,447 | ||
Total liabilities | 2,650,452 | 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, 82,916,410 and 82,153,944 shares issued and outstanding, respectively | 829 | 822 | ||
Additional paid-in capital | 2,519,268 | 2,478,975 | ||
Distributions in excess of earnings | -145,851 | -210,896 | ||
Total stockholders’ equity | 2,566,657 | 2,461,312 | ||
Noncontrolling interest : | ' | ' | ||
Common units of the Operating Partnership (Note 6) | 51,798 | 49,963 | ||
Noncontrolling interest in consolidated subsidiary (Notes 1 and 6) | 4,885 | 4,885 | ||
Total noncontrolling interests | 56,683 | 54,848 | ||
Total equity | 2,623,340 | 2,516,160 | ||
TOTAL LIABILITIES AND EQUITY | 5,273,792 | 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 $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Carrying amounts of consolidated VIE | $170,692,000 | $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 | 82,916,410 | 82,153,944 |
Common stock, shares outstanding | 82,916,410 | 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 | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
REVENUES: | ' | ' | ' | ' |
Rental income | $115,555 | $102,385 | $227,611 | $203,992 |
Tenant reimbursements | 10,592 | 9,717 | 22,164 | 18,847 |
Other property income (Note 12) | 3,047 | 5,733 | 5,204 | 5,960 |
Total revenues | 129,194 | 117,835 | 254,979 | 228,799 |
EXPENSES | ' | ' | ' | ' |
Property expenses | 25,713 | 23,800 | 50,807 | 46,605 |
Real estate taxes | 10,910 | 9,748 | 22,083 | 19,412 |
Provision for bad debts | 0 | 0 | 0 | 95 |
Ground leases | 773 | 889 | 1,535 | 1,736 |
General and administrative expenses | 11,857 | 9,855 | 22,668 | 19,524 |
Acquisition-related expenses | 609 | 164 | 837 | 819 |
Depreciation and amortization | 50,767 | 46,527 | 99,969 | 94,228 |
Total expenses | 100,629 | 90,983 | 197,899 | 182,419 |
OTHER (EXPENSES) INCOME: | ' | ' | ' | ' |
Interest income and other net investment gains (Note 11) | 419 | 19 | 596 | 411 |
Interest expense (Note 5) | -16,020 | -19,434 | -33,272 | -39,168 |
Total other (expenses) income | -15,601 | -19,415 | -32,676 | -38,757 |
INCOME FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF LAND | 12,964 | 7,437 | 24,404 | 7,623 |
Gain on sale of land (Note 13) | 3,490 | 0 | 3,490 | 0 |
INCOME FROM CONTINUING OPERATIONS | 16,454 | 7,437 | 27,894 | 7,623 |
DISCONTINUED OPERATIONS (Note 13) | ' | ' | ' | ' |
Income from discontinued operations | 0 | 2,243 | 377 | 4,445 |
Gains on dispositions of discontinued operations | 14,689 | 423 | 104,804 | 423 |
Total income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 |
NET INCOME | 31,143 | 10,103 | 133,075 | 12,491 |
Net income attributable to noncontrolling common units of the Operating Partnership | -603 | -157 | -2,690 | -135 |
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION | 30,540 | 9,946 | 130,385 | 12,356 |
PREFERRED DIVIDENDS | -3,312 | -3,313 | -6,625 | -6,626 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $27,228 | $6,633 | $123,760 | $5,730 |
Income from continuing operations available to common stockholders per common share – basic (Note 14) | $0.15 | $0.05 | $0.24 | $0 |
Income from continuing operations available to common stockholders per common share – diluted (Note 14) | $0.15 | $0.05 | $0.24 | $0 |
Net income available to common stockholders per share – basic (Note 14) | $0.33 | $0.08 | $1.49 | $0.06 |
Net income available to common stockholders per share – diluted (Note 14) | $0.32 | $0.08 | $1.46 | $0.06 |
Weighted average common shares outstanding – basic (Note 14) | 82,277,845 | 75,486,380 | 82,201,615 | 75,233,350 |
Weighted average common shares outstanding – diluted (Note 14) | 84,602,332 | 77,453,689 | 84,375,255 | 77,058,944 |
Dividends declared per common share | $0.35 | $0.35 | $0.70 | $0.70 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Total Stockholders' Equity | Preferred Stock [Member] | Common Stock Additional Paid-in Capital | Common Stock Distributions in Excess of Earnings | Noncontrolling Interest [Member] | Kilroy Realty, L.P. [Member] | Common Stock [Member] | Issuance of Equity under ATM Program [Member] |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Common Stock [Member] | |
Beginning Balance at Dec. 31, 2012 | $2,235,933 | $749 | $2,189,630 | $192,411 | $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 | 12,491 | ' | 12,356 | ' | ' | 12,356 | 135 | 12,491 | ' | ' |
Issuance of common stock, shares | ' | 814,408 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | 42,789 | 8 | 42,789 | ' | 42,781 | ' | ' | ' | ' | ' |
Issuance of share-based compensation awards, shares | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of share-based compensation awards | 702 | ' | 702 | ' | 702 | ' | ' | ' | ' | ' |
Noncash amortization of share-based compensation | 4,711 | ' | 4,711 | ' | 4,711 | ' | ' | 4,711 | ' | ' |
Repurchase of common stock and restricted stock units, shares | ' | -33,534 | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock and restricted stock units | -1,668 | ' | -1,668 | ' | -1,668 | ' | ' | ' | ' | ' |
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 | ' | ' |
Exercise of stock options, net, units | ' | 473 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options, net | 128 | ' | 128 | ' | 128 | ' | ' | ' | ' | ' |
Adjustment for noncontrolling interest | 0 | ' | -1,982 | ' | -1,982 | ' | 1,982 | ' | ' | ' |
Contribution by noncontrolling interest in consolidated subsidiary | 4,885 | ' | ' | ' | ' | ' | 4,885 | 4,885 | ' | ' |
Preferred dividends | ' | ' | ' | ' | ' | -6,626 | ' | -6,626 | ' | ' |
Preferred dividends | -6,626 | ' | -6,626 | ' | ' | ' | ' | -6,626 | ' | ' |
Dividends declared per common share and common unit ($0.70 per share/unit) | -54,956 | ' | -53,679 | ' | ' | -53,679 | -1,277 | ' | ' | ' |
Ending Balance at Jun. 30, 2013 | 2,238,379 | 757 | 2,186,351 | 192,411 | 2,170,667 | -177,484 | 52,028 | ' | ' | ' |
Ending Balance, shares at Jun. 30, 2013 | ' | 75,710,907 | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance at Mar. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 10,103 | ' | ' | ' | ' | ' | ' | 10,103 | ' | ' |
Preferred dividends | ' | ' | ' | ' | ' | ' | ' | -3,313 | ' | ' |
Ending Balance at Jun. 30, 2013 | 2,238,379 | ' | ' | 192,411 | ' | ' | ' | ' | ' | ' |
Beginning Balance at Dec. 31, 2013 | 2,516,160 | 822 | 2,461,312 | 192,411 | 2,478,975 | -210,896 | 54,848 | ' | ' | ' |
Beginning Balance, shares at Dec. 31, 2013 | ' | 82,153,944 | ' | ' | ' | ' | ' | ' | 82,153,944 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 133,075 | ' | 130,385 | ' | ' | 130,385 | 2,690 | 133,075 | ' | ' |
Issuance of common stock, shares | ' | 370,700 | ' | ' | ' | ' | ' | ' | ' | 370,700 |
Issuance of common stock | 22,136 | 4 | 22,136 | ' | 22,132 | ' | ' | ' | ' | ' |
Issuance of share-based compensation awards, shares | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of share-based compensation awards | 873 | ' | 873 | ' | 873 | ' | ' | ' | ' | ' |
Noncash amortization of share-based compensation | 6,384 | ' | 6,384 | ' | 6,384 | ' | ' | 6,384 | ' | ' |
Repurchase of common stock and restricted stock units, shares | ' | -42,763 | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock and restricted stock units | -2,532 | ' | -2,532 | ' | -2,532 | ' | ' | ' | ' | ' |
Settlement of restricted stock units for shares of common stock, shares | ' | 108,529 | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | 325,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options, net | 13,846 | 3 | 13,846 | ' | 13,843 | ' | ' | ' | ' | ' |
Exchange of common units of the Operating Parternship, shares | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange of common units of the Operating Partnership | 0 | ' | 28 | ' | 28 | ' | -28 | ' | ' | ' |
Adjustment for noncontrolling interest | 0 | ' | -435 | ' | -435 | ' | 435 | ' | ' | ' |
Preferred dividends | ' | ' | ' | ' | ' | -6,625 | ' | -6,625 | ' | ' |
Preferred dividends | -6,625 | ' | -6,625 | ' | ' | ' | ' | -6,625 | ' | ' |
Dividends declared per common share and common unit ($0.70 per share/unit) | -59,977 | ' | -58,715 | ' | ' | -58,715 | -1,262 | ' | ' | ' |
Ending Balance at Jun. 30, 2014 | 2,623,340 | 829 | 2,566,657 | 192,411 | 2,519,268 | -145,851 | 56,683 | ' | ' | ' |
Ending Balance, shares at Jun. 30, 2014 | ' | 82,916,410 | ' | ' | ' | ' | ' | ' | 82,916,410 | ' |
Beginning Balance at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 31,143 | ' | ' | ' | ' | ' | ' | 31,143 | ' | ' |
Issuance of common stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 370,700 |
Preferred dividends | ' | ' | ' | ' | ' | ' | ' | -3,312 | ' | ' |
Ending Balance at Jun. 30, 2014 | $2,623,340 | ' | ' | $192,411 | ' | ' | ' | ' | ' | ' |
Ending Balance, shares at Jun. 30, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | 82,916,410 | ' |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Dividends declared per common share | $0.35 | $0.35 | $0.70 | $0.70 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $133,075 | $12,491 |
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 | 98,882 | 98,798 |
Increase in provision for bad debts | 0 | 95 |
Depreciation of furniture, fixtures and equipment | 1,087 | 897 |
Noncash amortization of share-based compensation awards | 5,445 | 4,280 |
Noncash amortization of deferred financing costs and debt discounts and premiums | 2,437 | 2,665 |
Noncash amortization of net below market rents (Note 3) | -4,450 | -4,077 |
Gains on dispositions of discontinued operations (Note 13) | -104,804 | -423 |
Gain on sale of land (Note 13) | -3,490 | 0 |
Noncash amortization of deferred revenue related to tenant-funded tenant improvements | -5,017 | -4,959 |
Straight-line rents | -7,793 | -12,085 |
Net change in other operating assets | -5,049 | -6,128 |
Net change in other operating liabilities | -3,461 | 15,898 |
Insurance proceeds received for property damage | 0 | -448 |
Net cash provided by operating activities | 106,862 | 107,004 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Expenditures for acquisition of operating properties (Note 2) | -106,125 | -85,692 |
Expenditures for operating properties | 66,923 | 50,207 |
Expenditures for development and redevelopment properties and undeveloped land | -161,802 | -125,230 |
Expenditures for acquisition of development and redevelopment properties | -96,853 | -2,653 |
Net proceeds received from dispositions of operating properties (Note 13) | 353,581 | 14,409 |
Insurance proceeds received from property damage | 0 | 448 |
(Increase) decrease in restricted cash (Notes 1 and 13) | -43,742 | 228,303 |
Net cash used in investing activities | -121,864 | -20,622 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net proceeds from issuance of common stock (Note 7) | 22,136 | 42,789 |
Borrowings on unsecured line of credit | 205,000 | 0 |
Repayments on unsecured line of credit | -160,000 | -185,000 |
Principal payments on secured debt | -4,859 | -87,228 |
Proceeds from the issuance of unsecured debt | 0 | 299,901 |
Financing costs | -3,906 | -3,547 |
Repurchase of common stock and restricted stock units | -2,532 | -1,678 |
Proceeds from exercise of stock options (Note 9) | 13,846 | 128 |
Dividends and distributions paid to common stockholders and common unitholders | -58,864 | -53,998 |
Dividends and distributions paid to preferred stockholders and preferred unitholders | -6,625 | -6,626 |
Net cash provided by financing activities | 4,196 | 4,741 |
Net (decrease) increase in cash and cash equivalents | -10,806 | 91,123 |
Cash and cash equivalents, beginning of period | 35,377 | 16,700 |
Cash and cash equivalents, end of period | 24,571 | 107,823 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ' | ' |
Cash paid for interest, net of capitalized interest of $20,976 and $14,986 as of June 30, 2014 and 2013, respectively | 31,178 | 31,592 |
NONCASH INVESTING TRANSACTIONS: | ' | ' |
Accrual for expenditures for operating properties and development and redevelopment properties | 95,462 | 58,502 |
Tenant improvements funded directly by tenants | 16,037 | 7,073 |
Assumption of other assets and liabilities in connection with operating and development property acquisitions, net | 2,300 | 422 |
Contribution of land, net of related liabilities, by noncontrolling interest to consolidated subsidiary | 0 | 4,885 |
Assumption of secured debt in connection with property acquisitions | 0 | 95,496 |
NONCASH FINANCING TRANSACTIONS: | ' | ' |
Accrual of dividends and distributions payable to common stockholders and common unitholders | 30,090 | 27,137 |
Accrual of dividends and distributions payable to preferred stockholders and preferred unitholders | 1,656 | 1,692 |
Fair value of share-based compensation awards at equity classification date (Note 9) | 17,703 | 9,833 |
Exchange of common units of the Operating Partnership into shares of the Company’s common stock | $28 | $0 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ' | ' |
Cash paid for interest - capitalized interest amount | $20,976 | $14,986 |
Consolidated_Balance_Sheets_KI
Consolidated Balance Sheets (KILROY REALTY, L.P.) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
REAL ESTATE ASSETS: | ' | ' | ||
Land and improvements (Note 2) | $675,489 | $657,491 | ||
Buildings and improvements (Note 2) | 3,720,863 | 3,590,699 | ||
Undeveloped land and construction in progress (Note 2) | 1,270,675 | 1,016,757 | ||
Total real estate assets held for investment | 5,667,027 | 5,264,947 | ||
Accumulated depreciation and amortization | -885,580 | -818,957 | ||
Total real estate assets held for investment, net ($170,692 and $234,532 of VIE, respectively, Note 1) | 4,781,447 | 4,445,990 | ||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET (Note 13) | 0 | 213,100 | ||
CASH AND CASH EQUIVALENTS | 24,571 | 35,377 | ||
RESTRICTED CASH (Notes 1 and 13) | 93,522 | 49,780 | ||
MARKETABLE SECURITIES (Note 11) | 11,747 | 10,008 | ||
CURRENT RECEIVABLES, NET (Note 4) | 10,588 | 10,743 | ||
DEFERRED RENT RECEIVABLES, NET (Note 4) | 134,269 | 127,123 | ||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET (Notes 2 and 3) | 178,841 | 186,622 | ||
DEFERRED FINANCING COSTS, NET | 16,978 | 16,502 | ||
PREPAID EXPENSES AND OTHER ASSETS, NET | 21,829 | 15,783 | ||
TOTAL ASSETS | 5,273,792 | 5,111,028 | ||
LIABILITIES: | ' | ' | ||
Secured debt (Notes 5 and 11) | 553,427 | [1] | 560,434 | [1] |
Exchangeable senior notes, net (Notes 5 and 11) | 170,704 | 168,372 | ||
Unsecured debt, net (Notes 5 and 11) | 1,431,301 | 1,431,132 | ||
Unsecured line of credit (Notes 5 and 11) | 90,000 | 45,000 | ||
Accounts payable, accrued expenses and other liabilities | 215,535 | 198,467 | ||
Accrued distributions (Note 16) | 31,730 | 31,490 | ||
Deferred revenue and acquisition-related intangible liabilities, net (Notes 2 and 3) | 114,670 | 101,286 | ||
Rents received in advance and tenant security deposits | 43,085 | 44,240 | ||
Liabilities of real estate assets held for sale (Note 13) | 0 | 14,447 | ||
Total liabilities | 2,650,452 | 2,594,868 | ||
COMMITMENTS AND CONTINGENCIES (Note 10) | ' | ' | ||
Partners’ Capital (Note 8): | ' | ' | ||
TOTAL LIABILITIES AND EQUITY | 5,273,792 | 5,111,028 | ||
Kilroy Realty, L.P. [Member] | ' | ' | ||
REAL ESTATE ASSETS: | ' | ' | ||
Land and improvements (Note 2) | 675,489 | 657,491 | ||
Buildings and improvements (Note 2) | 3,720,863 | 3,590,699 | ||
Undeveloped land and construction in progress (Note 2) | 1,270,675 | 1,016,757 | ||
Total real estate assets held for investment | 5,667,027 | 5,264,947 | ||
Accumulated depreciation and amortization | -885,580 | -818,957 | ||
Total real estate assets held for investment, net ($170,692 and $234,532 of VIE, respectively, Note 1) | 4,781,447 | 4,445,990 | ||
REAL ESTATE ASSETS AND OTHER ASSETS HELD FOR SALE, NET (Note 13) | 0 | 213,100 | ||
CASH AND CASH EQUIVALENTS | 24,571 | 35,377 | ||
RESTRICTED CASH (Notes 1 and 13) | 93,522 | 49,780 | ||
MARKETABLE SECURITIES (Note 11) | 11,747 | 10,008 | ||
CURRENT RECEIVABLES, NET (Note 4) | 10,588 | 10,743 | ||
DEFERRED RENT RECEIVABLES, NET (Note 4) | 134,269 | 127,123 | ||
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET (Notes 2 and 3) | 178,841 | 186,622 | ||
DEFERRED FINANCING COSTS, NET | 16,978 | 16,502 | ||
PREPAID EXPENSES AND OTHER ASSETS, NET | 21,829 | 15,783 | ||
TOTAL ASSETS | 5,273,792 | 5,111,028 | ||
LIABILITIES: | ' | ' | ||
Secured debt (Notes 5 and 11) | 553,427 | 560,434 | ||
Exchangeable senior notes, net (Notes 5 and 11) | 170,704 | 168,372 | ||
Unsecured debt, net (Notes 5 and 11) | 1,431,301 | 1,431,132 | ||
Unsecured line of credit (Notes 5 and 11) | 90,000 | 45,000 | ||
Accounts payable, accrued expenses and other liabilities | 215,535 | 198,467 | ||
Accrued distributions (Note 16) | 31,730 | 31,490 | ||
Deferred revenue and acquisition-related intangible liabilities, net (Notes 2 and 3) | 114,670 | 101,286 | ||
Rents received in advance and tenant security deposits | 43,085 | 44,240 | ||
Liabilities of real estate assets held for sale (Note 13) | 0 | 14,447 | ||
Total liabilities | 2,650,452 | 2,594,868 | ||
Partners’ Capital (Note 8): | ' | ' | ||
Common units, 82,916,410 and 82,153,944 held by the general partner and 1,804,200 and 1,805,200 held by common limited partners issued and outstanding, respectively | 2,422,399 | 2,315,361 | ||
Total partners’ capital | 2,614,810 | 2,507,772 | ||
Noncontrolling interests in consolidated subsidiaries (Notes 1 and 6) | 8,530 | 8,388 | ||
Total capital | 2,623,340 | 2,516,160 | ||
TOTAL LIABILITIES AND EQUITY | 5,273,792 | 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 $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 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] | |||
Carrying amounts of consolidated VIE | $170,692,000 | $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 | ' | ' | 82,916,410 | 82,153,944 | ' | ' | ' | ' |
General partners, units outstanding | ' | ' | 82,916,410 | 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 | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
REVENUES: | ' | ' | ' | ' |
Rental income | $115,555 | $102,385 | $227,611 | $203,992 |
Tenant reimbursements | 10,592 | 9,717 | 22,164 | 18,847 |
Other property income (Note 12) | 3,047 | 5,733 | 5,204 | 5,960 |
Total revenues | 129,194 | 117,835 | 254,979 | 228,799 |
EXPENSES | ' | ' | ' | ' |
Property expenses | 25,713 | 23,800 | 50,807 | 46,605 |
Real estate taxes | 10,910 | 9,748 | 22,083 | 19,412 |
Provision for bad debts | 0 | 0 | 0 | 95 |
Ground leases | 773 | 889 | 1,535 | 1,736 |
General and administrative expenses | 11,857 | 9,855 | 22,668 | 19,524 |
Acquisition-related expenses | 609 | 164 | 837 | 819 |
Depreciation and amortization | 50,767 | 46,527 | 99,969 | 94,228 |
Total expenses | 100,629 | 90,983 | 197,899 | 182,419 |
OTHER (EXPENSES) INCOME: | ' | ' | ' | ' |
Interest income and other net investment gains (Note 11) | 419 | 19 | 596 | 411 |
Interest expense (Note 5) | -16,020 | -19,434 | -33,272 | -39,168 |
Total other (expenses) income | -15,601 | -19,415 | -32,676 | -38,757 |
INCOME FROM CONTINUING OPERATIONS | 16,454 | 7,437 | 27,894 | 7,623 |
DISCONTINUED OPERATIONS (Note 13) | ' | ' | ' | ' |
Income from discontinued operations | 0 | 2,243 | 377 | 4,445 |
Gains on dispositions of discontinued operations | 14,689 | 423 | 104,804 | 423 |
Total income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 |
NET INCOME | 31,143 | 10,103 | 133,075 | 12,491 |
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION | 30,540 | 9,946 | 130,385 | 12,356 |
Redeemable Preferred Stock Dividends | ' | ' | 6,625 | 6,626 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | 27,228 | 6,633 | 123,760 | 5,730 |
Income from continuing operations available to common unitholders per common unit - basic (Note 15) | $0.15 | $0.05 | $0.24 | $0 |
Income from continuing operations available to common unitholders per common unit - diluted (Note 15) | $0.15 | $0.05 | $0.24 | $0 |
Net income available to common unitholders per unit-basic (Note 15) | $0.33 | $0.08 | $1.49 | $0.06 |
Net income available to common unitholders per unit-diluted (Note 15) | $0.32 | $0.08 | $1.46 | $0.06 |
Weighted average common units outstanding - basic (Note 15) | 82,277,845 | 75,486,380 | 82,201,615 | 75,233,350 |
Weighted average common units outstanding - diluted (Note 15) | 84,602,332 | 77,453,689 | 84,375,255 | 77,058,944 |
Kilroy Realty, L.P. [Member] | ' | ' | ' | ' |
REVENUES: | ' | ' | ' | ' |
Rental income | 115,555 | 102,385 | 227,611 | 203,992 |
Tenant reimbursements | 10,592 | 9,717 | 22,164 | 18,847 |
Other property income (Note 12) | 3,047 | 5,733 | 5,204 | 5,960 |
Total revenues | 129,194 | 117,835 | 254,979 | 228,799 |
EXPENSES | ' | ' | ' | ' |
Property expenses | 25,713 | 23,800 | 50,807 | 46,605 |
Real estate taxes | 10,910 | 9,748 | 22,083 | 19,412 |
Provision for bad debts | 0 | 0 | 0 | 95 |
Ground leases | 773 | 889 | 1,535 | 1,736 |
General and administrative expenses | 11,857 | 9,855 | 22,668 | 19,524 |
Acquisition-related expenses | 609 | 164 | 837 | 819 |
Depreciation and amortization | 50,767 | 46,527 | 99,969 | 94,228 |
Total expenses | 100,629 | 90,983 | 197,899 | 182,419 |
OTHER (EXPENSES) INCOME: | ' | ' | ' | ' |
Interest income and other net investment gains (Note 11) | 419 | 19 | 596 | 411 |
Interest expense (Note 5) | -16,020 | -19,434 | -33,272 | -39,168 |
Total other (expenses) income | -15,601 | -19,415 | -32,676 | -38,757 |
INCOME FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF LAND | 12,964 | 7,437 | 24,404 | 7,623 |
Gain on sale of land (Note 13) | 3,490 | 0 | 3,490 | 0 |
INCOME FROM CONTINUING OPERATIONS | 16,454 | 7,437 | 27,894 | 7,623 |
DISCONTINUED OPERATIONS (Note 13) | ' | ' | ' | ' |
Income from discontinued operations | 0 | 2,243 | 377 | 4,445 |
Gains on dispositions of discontinued operations | 14,689 | 423 | 104,804 | 423 |
Total income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 |
NET INCOME | 31,143 | 10,103 | 133,075 | 12,491 |
Net income attributable to noncontrolling interests in consolidated subsidiaries | -77 | -62 | -142 | -131 |
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION | 31,066 | 10,041 | 132,933 | 12,360 |
Redeemable Preferred Stock Dividends | 3,312 | 3,313 | 6,625 | 6,626 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $27,754 | $6,728 | $126,308 | $5,734 |
Income from continuing operations available to common unitholders per common unit - basic (Note 15) | $0.15 | $0.05 | $0.24 | $0 |
Income from continuing operations available to common unitholders per common unit - diluted (Note 15) | $0.15 | $0.05 | $0.24 | $0 |
Net income available to common unitholders per unit-basic (Note 15) | $0.33 | $0.08 | $1.49 | $0.06 |
Net income available to common unitholders per unit-diluted (Note 15) | $0.32 | $0.08 | $1.46 | $0.06 |
Weighted average common units outstanding - basic (Note 15) | 84,082,045 | 77,310,685 | 84,005,942 | 77,058,748 |
Weighted average common units outstanding - diluted (Note 15) | 86,406,532 | 79,277,994 | 86,179,582 | 78,884,342 |
Dividends declared per common unit | $0.35 | $0.35 | $0.70 | $0.70 |
Consolidated_Statements_of_Cap
Consolidated Statements of Capital (KILROY REALTY, L.P.) (Kilroy Realty, L.P. [Member], USD $) | 6 Months Ended | 6 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 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 | 133,075 | 12,491 | 132,933 | 12,360 | ' | ' | ' | ' | 132,933 | 12,360 | 142 | 131 |
Issuance of common units, units | ' | ' | ' | ' | ' | ' | ' | ' | 370,700 | 809,408 | ' | ' |
Issuance of common units | 22,136 | 42,789 | 22,136 | 42,789 | ' | ' | ' | ' | 22,136 | 42,789 | ' | ' |
Issuance of share-based compensation awards, units | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Partners' Capital Account, Unit-based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | 873 | 702 | ' | ' |
Issuance of share-based compensation awards | 873 | 702 | 873 | 702 | ' | ' | ' | ' | ' | ' | ' | ' |
Noncash amortization of share-based compensation | 6,384 | 4,711 | 6,384 | 4,711 | ' | ' | ' | ' | 6,384 | 4,711 | ' | ' |
Repurchase of common units and restricted stock units, shares | ' | ' | ' | ' | ' | ' | ' | ' | -42,763 | -33,534 | ' | ' |
Repurchase of common units and restricted stock units | -2,532 | -1,668 | -2,532 | -1,668 | ' | ' | ' | ' | -2,532 | -1,668 | ' | ' |
Settlement of restricted stock units, shares | ' | ' | ' | ' | ' | ' | ' | ' | 108,529 | 2,579 | ' | ' |
Settlement of restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -10 | ' | ' |
Settlement of restricted stock units | 0 | -10 | 0 | -10 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options, net, units | ' | ' | ' | ' | ' | ' | ' | ' | 325,000 | 473 | ' | ' |
Exercise of stock options, net | 13,846 | 128 | 13,846 | 128 | ' | ' | ' | ' | 13,846 | 128 | ' | ' |
Contribution by noncontrolling interest in consolidated subsidiary | ' | 4,885 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,885 |
Preferred dividends | -6,625 | -6,626 | -6,625 | -6,626 | ' | ' | ' | ' | -6,625 | -6,626 | ' | ' |
Partners' Capital Account, Distributions | ' | ' | ' | ' | ' | ' | ' | ' | -59,977 | -54,956 | ' | ' |
Distributions declared per common unit ($0.70 per unit) | -59,977 | -54,956 | -59,977 | -54,956 | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance | $2,623,340 | $2,238,379 | $2,614,810 | $2,230,084 | $192,411 | $192,411 | $192,411 | $192,411 | $2,422,399 | $2,037,673 | $8,530 | $8,295 |
Ending Balance units | ' | ' | ' | ' | ' | ' | ' | ' | 84,720,610 | 77,532,410 | ' | ' |
Consolidated_Statements_of_Cap1
Consolidated Statements of Capital (KILROY REALTY, L.P.) (Parenthetical) (Kilroy Realty, L.P. [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Kilroy Realty, L.P. [Member] | ' | ' | ' | ' |
Distributions Per Limited Partnership and General Partnership Unit, Outstanding, Basic | $0.35 | $0.35 | $0.70 | $0.70 |
Consolidated_Statements_of_Cas2
Consolidated Statements of Cash Flows (KILROY REALTY, L.P.) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $133,075 | $12,491 |
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 | 98,882 | 98,798 |
Increase in provision for bad debts | 0 | 95 |
Depreciation of furniture, fixtures and equipment | 1,087 | 897 |
Noncash amortization of share-based compensation awards | 5,445 | 4,280 |
Noncash amortization of deferred financing costs and debt discounts and premiums | 2,437 | 2,665 |
Noncash amortization of net below market rents (Note 3) | -4,450 | -4,077 |
Gains on dispositions of discontinued operations (Note 13) | -104,804 | -423 |
Gain on sale of land (Note 13) | -3,490 | 0 |
Noncash amortization of deferred revenue related to tenant-funded tenant improvements | -5,017 | -4,959 |
Straight-line rents | -7,793 | -12,085 |
Net change in other operating assets | -5,049 | -6,128 |
Net change in other operating liabilities | -3,461 | 15,898 |
Insurance proceeds received for property damage | 0 | -448 |
Net cash provided by operating activities | 106,862 | 107,004 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Expenditures for acquisition of operating properties (Note 2) | -106,125 | -85,692 |
Expenditures for operating properties | -66,923 | -50,207 |
Expenditures for development and redevelopment properties and undeveloped land | -161,802 | -125,230 |
Expenditures for acquisition of development and redevelopment properties | 96,853 | 2,653 |
Net proceeds received from dispositions of operating properties (Note 13) | 353,581 | 14,409 |
Insurance proceeds received from property damage | 0 | 448 |
(Increase) decrease in restricted cash (Notes 1 and 13) | -43,742 | 228,303 |
Net cash used in investing activities | -121,864 | -20,622 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Borrowings on unsecured line of credit | 205,000 | 0 |
Repayments on unsecured line of credit | -160,000 | -185,000 |
Principal payments on secured debt | -4,859 | -87,228 |
Proceeds from the issuance of unsecured debt | 0 | 299,901 |
Financing costs | -3,906 | -3,547 |
Repurchase of common stock and restricted stock units | -2,532 | -1,678 |
Proceeds from exercise of stock options (Note 9) | 13,846 | 128 |
Distributions paid to common unitholders | -58,864 | -53,998 |
Distributions paid to preferred unitholders | -6,625 | -6,626 |
Net cash provided by financing activities | 4,196 | 4,741 |
Net (decrease) increase in cash and cash equivalents | -10,806 | 91,123 |
Cash and cash equivalents, beginning of period | 35,377 | 16,700 |
Cash and cash equivalents, end of period | 24,571 | 107,823 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ' | ' |
Cash paid for interest, net of capitalized interest of $20,976 and $14,986 as of June 30, 2014 and 2013, respectively | 31,178 | 31,592 |
NONCASH INVESTING TRANSACTIONS: | ' | ' |
Accrual for expenditures for operating properties and development and redevelopment properties | 95,462 | 58,502 |
Tenant improvements funded directly by tenants | 16,037 | 7,073 |
Assumption of other assets and liabilities in connection with operating and development property acquisitions, net | 2,300 | 422 |
Contribution of land, net of related liabilities, by noncontrolling interest to consolidated subsidiary | 0 | 4,885 |
Assumption of secured debt in connection with property acquisitions | 0 | 95,496 |
NONCASH FINANCING TRANSACTIONS: | ' | ' |
Accrual of distributions payable to common unitholders | 30,090 | 27,137 |
Accrual of distributions payable to preferred unitholders | 1,656 | 1,692 |
Fair value of share-based compensation awards at equity classification date (Note 9) | 17,703 | 9,833 |
Kilroy Realty, L.P. [Member] | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | 133,075 | 12,491 |
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 | 98,882 | 98,798 |
Increase in provision for bad debts | 0 | 95 |
Depreciation of furniture, fixtures and equipment | 1,087 | 897 |
Noncash amortization of share-based compensation awards | 5,445 | 4,280 |
Noncash amortization of deferred financing costs and debt discounts and premiums | 2,437 | 2,665 |
Noncash amortization of net below market rents (Note 3) | -4,450 | -4,077 |
Gains on dispositions of discontinued operations (Note 13) | -104,804 | -423 |
Gain on sale of land (Note 13) | -3,490 | 0 |
Noncash amortization of deferred revenue related to tenant-funded tenant improvements | -5,017 | -4,959 |
Straight-line rents | -7,793 | -12,085 |
Net change in other operating assets | -5,049 | -6,128 |
Net change in other operating liabilities | -3,461 | 15,898 |
Insurance proceeds received for property damage | 0 | -448 |
Net cash provided by operating activities | 106,862 | 107,004 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Expenditures for acquisition of operating properties (Note 2) | -106,125 | -85,692 |
Expenditures for operating properties | -66,923 | -50,207 |
Expenditures for development and redevelopment properties and undeveloped land | -161,802 | -125,230 |
Expenditures for acquisition of development and redevelopment properties | 96,853 | 2,653 |
Net proceeds received from dispositions of operating properties (Note 13) | 353,581 | 14,409 |
Insurance proceeds received from property damage | 0 | 448 |
(Increase) decrease in restricted cash (Notes 1 and 13) | -43,742 | 228,303 |
Net cash used in investing activities | -121,864 | -20,622 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net proceeds from issuance of common units (Note 8) | 22,136 | 42,789 |
Borrowings on unsecured line of credit | 205,000 | 0 |
Repayments on unsecured line of credit | -160,000 | -185,000 |
Principal payments on secured debt | -4,859 | -87,228 |
Proceeds from the issuance of unsecured debt | 0 | 299,901 |
Financing costs | -3,906 | -3,547 |
Repurchase of common stock and restricted stock units | -2,532 | -1,678 |
Proceeds from exercise of stock options (Note 9) | 13,846 | 128 |
Distributions paid to common unitholders | -58,864 | -53,998 |
Distributions paid to preferred unitholders | -6,625 | -6,626 |
Net cash provided by financing activities | 4,196 | 4,741 |
Net (decrease) increase in cash and cash equivalents | -10,806 | 91,123 |
Cash and cash equivalents, beginning of period | 35,377 | 16,700 |
Cash and cash equivalents, end of period | 24,571 | 107,823 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ' | ' |
Cash paid for interest, net of capitalized interest of $20,976 and $14,986 as of June 30, 2014 and 2013, respectively | 31,178 | 31,592 |
NONCASH INVESTING TRANSACTIONS: | ' | ' |
Accrual for expenditures for operating properties and development and redevelopment properties | 95,462 | 58,502 |
Tenant improvements funded directly by tenants | 16,037 | 7,073 |
Assumption of other assets and liabilities in connection with operating and development property acquisitions, net | 2,300 | 422 |
Contribution of land, net of related liabilities, by noncontrolling interest to consolidated subsidiary | 0 | 4,885 |
Assumption of secured debt in connection with property acquisitions | 0 | 95,496 |
NONCASH FINANCING TRANSACTIONS: | ' | ' |
Accrual of distributions payable to common unitholders | 30,090 | 27,137 |
Accrual of distributions payable to preferred unitholders | 1,656 | 1,692 |
Fair value of share-based compensation awards at equity classification date (Note 9) | $17,703 | $9,833 |
Consolidated_Statements_of_Cas3
Consolidated Statements of Cash Fiows (Kilroy Realty, L.P.) (Parenthetical) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash paid for interest - capitalized interest amount | $20,976 | $14,986 |
Kilroy Realty, L.P. [Member] | ' | ' |
Cash paid for interest - capitalized interest amount | $20,976 | $14,986 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 6 Months Ended | |||||||||||
Jun. 30, 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 generally 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 June 30, 2014: | ||||||||||||
Number of | Rentable | Number of | Percentage | |||||||||
Buildings | Square Feet | Tenants | Occupied | |||||||||
Stabilized Office Properties | 105 | 13,189,326 | 532 | 93.6 | % | |||||||
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. There were no operating properties in “lease-up” as of June 30, 2014. | ||||||||||||
As of June 30, 2014, the following properties were excluded from our stabilized portfolio: | ||||||||||||
Number of Properties | Estimated Rentable | |||||||||||
Square Feet | ||||||||||||
Development properties under construction (1) | 6 | 2,548,000 | ||||||||||
_______________ | ||||||||||||
-1 | Estimated rentable square feet upon completion. | |||||||||||
As of June 30, 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 June 30, 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 June 30, 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 generally 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/A 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 June 30, 2014, the consolidated financial statements of the Company and the Operating Partnership included two variable interest entities (“VIEs”), in which we were deemed to be the primary beneficiary. One of the VIEs was established during the second quarter of 2014 to facilitate potential Section 1031 Exchanges. The other VIE, Redwood City Partners, LLC, was established in the second quarter of 2013 in connection with an undeveloped land acquisition. The impact of consolidating the VIEs increased the Company’s total assets, liabilities and noncontrolling interests by approximately $175.4 million (of which $170.7 million related to real estate held for investment on our consolidated balance sheet), approximately $12.8 million and approximately $4.9 million, respectively, as of June 30, 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 potential Section 1031 Exchanges. 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 June 19, 2014, the Financial Accounting Standards Board (“FASB”) issued their final standard to amend the accounting guidance for stock compensation tied to performance targets (Accounting Standards Update (“ASU”) No. 2014-12). The issue is the result of a consensus of the FASB Emerging Issues Task Force (Issue No. 13-D). The standard requires that a performance target that could be achieved after the requisite service period be treated as a performance condition, and as a result, this type of performance condition may delay expense recognition until achievement of the performance target is probable. The ASU is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015, and early adoption is permitted. The Company will adopt the guidance effective January 1, 2016 and the guidance is not anticipated to have a material impact on our consolidated financial statements or notes to our consolidated financial statements. | ||||||||||||
On May 28, 2014, the FASB issued their final standard on revenue from contracts with customers. The guidance specifically notes that lease contracts with customers are a scope exception. The standard (ASU No. 2014-09) outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. The ASU is effective for annual reporting periods (including interim periods), beginning after December 15, 2016, and early adoption is not permitted. The Company will adopt the guidance effective January 1, 2017 and is currently assessing the impact on our consolidated financial statements and notes to our consolidated financial statements. | ||||||||||||
On April 10, 2014, the FASB issued final guidance to change the criteria for reporting discontinued operations while enhancing disclosures in this area (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. |
Acquisitions
Acquisitions | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||
Acquisitions | ' | |||||||||||||
Acquisitions | ||||||||||||||
Operating Properties | ||||||||||||||
During the six months ended June 30, 2014, we acquired the one operating office property listed below, from an unrelated third party. The acquisition was funded with proceeds from 2013 and 2014 dispositions (see Note 13). | ||||||||||||||
Property | Date of Acquisition | Number of | Rentable Square | Occupancy as of June 30, 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) at the time of the acquisition. | |||||||||||||
-3 | Represents below-market leases of approximately $4.6 million (with a weighted average amortization period of seven years). | |||||||||||||
Development Project Sites | ||||||||||||||
During the six months ended June 30, 2014, we acquired one undeveloped land site listed below from an unrelated third party. The acquisition was funded with proceeds from the Company’s at-the-market stock offering program (see Note 7) and disposition proceeds (see Note 13). | ||||||||||||||
Project | Date of Acquisition | Type | Purchase Price | |||||||||||
(in millions) | ||||||||||||||
Kilroy Mission Bay, San Francisco, CA (1) (2) | 23-May-14 | Land | $ | 95 | ||||||||||
_______________ | ||||||||||||||
-1 | In connection with this acquisition, we also assumed $2.3 million in accrued liabilities which are not included in the purchase price above. As of June 30, 2014, the purchase price and assumed liabilities are included in undeveloped land and construction in progress and the assumed liabilities are included in accounts payable, accrued expenses and other liabilities on our consolidated balance sheets. | |||||||||||||
-2 | As of June 30, 2014, this property is temporarily being held in a separate VIE to facilitate potential Section 1031 Exchanges (see Note 1). |
Deferred_Leasing_Costs_and_Acq
Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 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 June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Deferred Leasing Costs and Acquisition-Related Intangible Assets, net: | ||||||||||||||||||||||||
Deferred leasing costs | $ | 184,254 | $ | 178,720 | ||||||||||||||||||||
Accumulated amortization | (70,997 | ) | (63,246 | ) | ||||||||||||||||||||
Deferred leasing costs, net | 113,257 | 115,474 | ||||||||||||||||||||||
Above-market operating leases | 26,524 | 27,635 | ||||||||||||||||||||||
Accumulated amortization | (16,097 | ) | (14,283 | ) | ||||||||||||||||||||
Above-market operating leases, net | 10,427 | 13,352 | ||||||||||||||||||||||
In-place leases | 100,138 | 100,318 | ||||||||||||||||||||||
Accumulated amortization | (45,454 | ) | (42,999 | ) | ||||||||||||||||||||
In-place leases, net | 54,684 | 57,319 | ||||||||||||||||||||||
Below-market ground lease obligation | 490 | 490 | ||||||||||||||||||||||
Accumulated amortization | (17 | ) | (13 | ) | ||||||||||||||||||||
Below-market ground lease obligation, net | 473 | 477 | ||||||||||||||||||||||
Total deferred leasing costs and acquisition-related intangible assets, net | $ | 178,841 | $ | 186,622 | ||||||||||||||||||||
Acquisition-Related Intangible Liabilities, net: (1) | ||||||||||||||||||||||||
Below-market operating leases | $ | 69,737 | $ | 69,385 | ||||||||||||||||||||
Accumulated amortization | (28,552 | ) | (25,706 | ) | ||||||||||||||||||||
Below-market operating leases, net | 41,185 | 43,679 | ||||||||||||||||||||||
Above-market ground lease obligation | 6,320 | 6,320 | ||||||||||||||||||||||
Accumulated amortization | (273 | ) | (223 | ) | ||||||||||||||||||||
Above-market ground lease obligation, net | 6,047 | 6,097 | ||||||||||||||||||||||
Total acquisition-related intangible liabilities, net | $ | 47,232 | $ | 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 and six months ended June 30, 2014 and 2013: | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Deferred leasing costs (1) | $ | 6,771 | $ | 6,093 | $ | 13,551 | $ | 13,937 | ||||||||||||||||
Above-market operating leases (2) | 1,435 | 1,358 | 2,925 | 2,796 | ||||||||||||||||||||
In-place leases (1) | 5,785 | 7,412 | 11,921 | 14,870 | ||||||||||||||||||||
Below-market ground lease obligation (3) | — | 2 | — | 4 | ||||||||||||||||||||
Below-market operating leases (4) | (4,021 | ) | (3,388 | ) | (7,114 | ) | (6,873 | ) | ||||||||||||||||
Above-market ground lease obligation (5) | (25 | ) | (25 | ) | (50 | ) | (50 | ) | ||||||||||||||||
Total | $ | 9,945 | $ | 11,452 | $ | 21,233 | $ | 24,684 | ||||||||||||||||
_______________ | ||||||||||||||||||||||||
-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 June 30, 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 | $ | 13,223 | $ | 2,395 | $ | 9,490 | $ | 4 | $ | (5,781 | ) | $ | (51 | ) | ||||||||||
2015 | 22,627 | 2,918 | 13,562 | 8 | (9,577 | ) | (101 | ) | ||||||||||||||||
2016 | 19,813 | 1,891 | 10,475 | 8 | (7,847 | ) | (101 | ) | ||||||||||||||||
2017 | 17,034 | 1,573 | 8,774 | 8 | (6,780 | ) | (101 | ) | ||||||||||||||||
2018 | 13,654 | 973 | 5,689 | 8 | (5,177 | ) | (101 | ) | ||||||||||||||||
Thereafter | 26,906 | 677 | 6,694 | 437 | (6,023 | ) | (5,592 | ) | ||||||||||||||||
Total | $ | 113,257 | $ | 10,427 | $ | 54,684 | $ | 473 | $ | (41,185 | ) | $ | (6,047 | ) | ||||||||||
_______________ | ||||||||||||||||||||||||
-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 | 6 Months Ended | |||||||
Jun. 30, 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 June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Current receivables | $ | 12,720 | $ | 12,866 | ||||
Allowance for uncollectible tenant receivables | (2,132 | ) | (2,123 | ) | ||||
Current receivables, net | $ | 10,588 | $ | 10,743 | ||||
Deferred Rent Receivables, net | ||||||||
Deferred rent receivables, net consisted of the following as of June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Deferred rent receivables | $ | 136,259 | $ | 129,198 | ||||
Allowance for deferred rent receivables | (1,990 | ) | (2,075 | ) | ||||
Deferred rent receivables, net | $ | 134,269 | $ | 127,123 | ||||
Secured_and_Unsecured_Debt_of_
Secured and Unsecured Debt of the Operating Partnership (Kilroy Realty, L.P. [Member]) | 6 Months Ended | |||||||||||||||
Jun. 30, 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 June 30, 2014 and December 31, 2013: | ||||||||||||||||
Type of Debt | Annual Stated Interest Rate (1) | GAAP | Maturity Date | June 30, 2014 (3) | December 31, 2013 (3) | |||||||||||
Effective Rate (1)(2) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Mortgage note payable | 4.27% | 4.27% | Feb-18 | $ | 131,954 | $ | 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 | 90,884 | 92,502 | |||||||||||
Mortgage note payable | 6.51% | 6.51% | Feb-17 | 67,163 | 67,663 | |||||||||||
Mortgage note payable (4) | 5.23% | 3.50% | Jan-16 | 53,683 | 54,570 | |||||||||||
Mortgage note payable (4) | 5.57% | 3.25% | Feb-16 | 40,956 | 41,654 | |||||||||||
Mortgage note payable (4) | 5.09% | 3.50% | Aug-15 | 34,578 | 34,845 | |||||||||||
Mortgage note payable (4) | 4.94% | 4.00% | Apr-15 | 26,971 | 27,641 | |||||||||||
Mortgage note payable | 7.15% | 7.15% | May-17 | 7,791 | 8,972 | |||||||||||
Other | Various | Various | Various | 2,447 | 2,470 | |||||||||||
Total | $ | 553,427 | $ | 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 June 30, 2014 and December 31, 2013. | ||||||||||||||||
4.25% Exchangeable Notes | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Principal amount | $ | 172,500 | $ | 172,500 | ||||||||||||
Unamortized discount | (1,796 | ) | (4,128 | ) | ||||||||||||
Net carrying amount of liability component | $ | 170,704 | $ | 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. | |||||||||||||||
Upon exchange, the holders of the 4.25% Exchangeable Notes will receive (i) cash up to the principal amount of the 4.25% Exchangeable Notes and (ii) to the extent the exchange value exceeds the principal amount of the 4.25% Exchangeable Notes, shares of the Company’s common stock. Any shares of common stock delivered for settlement will be based on a daily exchange value calculated on a proportionate basis for each day of a 30 trading-day observation period. Upon notification, the noteholders will no longer be eligible to receive interest payments from the previous payment date. | ||||||||||||||||
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 and six months ended June 30, 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 June 30, 2014, the 4.25% Exchangeable Notes were 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. | ||||||||||||||||
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 capped calls, as amended, are separate transactions entered into by us with the relevant financial institutions, are not part of the terms of the 4.25% Exchangeable Notes, and do not affect the holders’ rights under the 4.25% Exchangeable Notes. The strike prices of the capped calls, which are subject to customary anti-dilution adjustments, correspond to the exchange prices of the applicable 4.25% Exchangeable Notes. The table below summarizes our capped call option positions for the 4.25% Exchangeable Notes as of June 30, 2014 and December 31, 2013. | ||||||||||||||||
4.25% Exchangeable Notes | ||||||||||||||||
Referenced shares of common stock (1) | 4,800,796 | |||||||||||||||
Exchange price, including effect of capped calls | $ | 42.81 | ||||||||||||||
________________________ | ||||||||||||||||
-1 | As of the date of this report, the Company’s capped call option position has been reduced to 4,717,498 shares of common stock. | |||||||||||||||
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 the capped calls were recorded as a reduction to additional paid-in capital. | ||||||||||||||||
For the three and six months ended June 30, 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 June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Per share average trading price of the Company’s common stock | $60.39 | $54.49 | $57.83 | $52.86 | ||||||||||||
The 4.25% Exchangeable Notes were exchangeable as of June 30, 2014 and June 30, 2013. If all of the 4.25% Exchangeable Notes were exchanged, the approximate fair value of the shares upon exchange at June 30, 2014 and 2013, using the per share average trading price presented in the table above, would have been as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Approximate fair value of shares upon exchange | $ | 293,595 | $ | 259,200 | $ | 285,720 | $ | 254,000 | ||||||||
Principal amount of the 4.25% Exchangeable Notes | 172,500 | 172,500 | 172,500 | 172,500 | ||||||||||||
Approximate fair value in excess amount of principal amount | $ | 121,095 | $ | 86,700 | $ | 113,220 | $ | 81,500 | ||||||||
During the three months ended June 30, 2014, the Company received notices for exchange totaling $37.0 million of the 4.25% Exchangeable Notes. $27.7 million settled in July 2014 and $9.3 million will settle in August 2014. For these exchanges, the number of shares issued in excess of the exchange value was calculated on a proportionate basis for each day of a 30 trading-day observation following the exchange date. For the July 2014 exchange settlements, the Company paid the noteholders $27.7 million of principal value in cash and 321,358 shares of common stock for the excess exchange value. As a result of the July 2014 exchanges, the Company exercised the equivalent proportionate amount of its capped call option and received 83,298 shares of common stock under the capped call. This reduced the net impact of the shares issued in connection with the exchange notices to a net settlement of 238,060 shares of common stock issued. | ||||||||||||||||
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 4.25% 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 and six months June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Contractual interest payments | $ | 1,636 | $ | 1,833 | $ | 3,469 | $ | 3,666 | ||||||||
Amortization of discount | 1,177 | 1,097 | 2,333 | 2,175 | ||||||||||||
Interest expense attributable to the 4.25% Exchangeable Notes | $ | 2,813 | $ | 2,930 | $ | 5,802 | $ | 5,841 | ||||||||
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 June 30, 2014 and December 31, 2013: | ||||||||||||||||
Principal Amount as of | ||||||||||||||||
Issuance date | Maturity date | Stated | Effective interest rate (1) | June 30, | 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 | (85 | ) | (90 | ) | ||||||||||||
Net carrying amount | $ | 299,915 | $ | 299,910 | ||||||||||||
4.800% Unsecured Senior Notes (3) | Jul-11 | Jul-18 | 4.80% | 4.83% | $ | 325,000 | $ | 325,000 | ||||||||
Unamortized discount | (302 | ) | (339 | ) | ||||||||||||
Net carrying amount | $ | 324,698 | $ | 324,661 | ||||||||||||
6.625% Unsecured Senior Notes (4) | May-10 | Jun-20 | 6.63% | 6.74% | $ | 250,000 | $ | 250,000 | ||||||||
Unamortized discount | (1,259 | ) | (1,367 | ) | ||||||||||||
Net carrying amount | $ | 248,741 | $ | 248,633 | ||||||||||||
5.000% Unsecured Senior Notes (5) | Nov-10 | Nov-15 | 5.00% | 5.01% | $ | 325,000 | $ | 325,000 | ||||||||
Unamortized discount | (53 | ) | (73 | ) | ||||||||||||
Net carrying amount | $ | 324,947 | $ | 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 June 30, 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%. | ||||||||||||||||
Unsecured Revolving Credit Facility and Term Loan Facility | ||||||||||||||||
During the six months ended June 30, 2014, the Company amended the terms of our unsecured revolving credit facility and the Company’s $150.0 million term loan facility. The amendment increased the size of the Company’s unsecured line of credit to $600.0 million, extended the maturity to July 2019 on both the credit facility and term loan facility, reduced the annual interest rate on the unsecured revolving credit facility to LIBOR plus 1.250% and reduced the annual interest rate on the term loan facility to LIBOR plus 1.400%. The amendment did not affect the outstanding borrowings under the credit facility. | ||||||||||||||||
The following table summarizes the balance and terms of our unsecured revolving credit facility as of June 30, 2014 and December 31, 2013: | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Outstanding borrowings | $ | 90,000 | $ | 45,000 | ||||||||||||
Remaining borrowing capacity | 510,000 | 455,000 | ||||||||||||||
Total borrowing capacity (1) | $ | 600,000 | $ | 500,000 | ||||||||||||
Interest rate (2)(3) | 1.41 | % | 1.62 | % | ||||||||||||
Facility fee-annual rate (4) | 0.25% | 0.30% | ||||||||||||||
Maturity date | Jul-19 | Apr-17 | ||||||||||||||
_______________ | ||||||||||||||||
-1 | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $300.0 million under an accordion feature under the terms of the unsecured revolving credit facility and term loan facility. | |||||||||||||||
-2 | Our revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.250% as of June 30, 2014. | |||||||||||||||
-3 | Our revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.450% as of December 31, 2013. | |||||||||||||||
-4 | Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of June 30, 2014, $6.5 million of deferred financing costs remains to be amortized through the amended maturity date of our unsecured revolving credit facility. | |||||||||||||||
The Company intends to borrow amounts under the unsecured 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. | ||||||||||||||||
The following table summarizes the balance and terms of our term loan facility as of June 30, 2014 and December 31, 2013: | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Outstanding borrowings | $ | 150,000 | $ | 150,000 | ||||||||||||
Interest rate | 1.4 | % | 1.75 | % | ||||||||||||
Maturity date | Jul-19 | Mar-16 | ||||||||||||||
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 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 June 30, 2014. | ||||||||||||||||
Debt Maturities | ||||||||||||||||
The following table summarizes the stated debt maturities and scheduled amortization payments, excluding debt discounts and premiums, as of June 30, 2014: | ||||||||||||||||
Year | (in thousands) | |||||||||||||||
Remaining 2014 | $ | 260,485 | ||||||||||||||
2015 | 395,104 | |||||||||||||||
2016 | 99,431 | |||||||||||||||
2017 | 71,748 | |||||||||||||||
2018 | 451,728 | |||||||||||||||
Thereafter | 958,013 | |||||||||||||||
Total (1) | $ | 2,236,509 | ||||||||||||||
________________________ | ||||||||||||||||
-1 | Includes gross principal balance of outstanding debt before impact of net unamortized premiums totaling approximately $8.9 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 and six months ended June 30, 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 June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Gross interest expense | $ | 27,770 | $ | 27,914 | $ | 55,804 | $ | 55,380 | ||||||||
Capitalized interest and loan fees | (11,750 | ) | (8,480 | ) | (22,532 | ) | (16,212 | ) | ||||||||
Interest expense | $ | 16,020 | $ | 19,434 | $ | 33,272 | $ | 39,168 | ||||||||
Noncontrolling_Interests_on_th
Noncontrolling Interests on the Company's Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 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 97.7% common general partnership interest in the Operating Partnership as of June 30, 2014, December 31, 2013 and June 30, 2013, respectively. The remaining 2.1%, 2.2% and 2.3% common limited partnership interest as of June 30, 2014, December 31, 2013 and June 30, 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 1,821,503 common units outstanding held by these investors, executive officers and directors as of June 30, 2014, December 31, 2013 and June 30, 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 $112.0 million and $90.8 million as of June 30, 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 June 30, 2014 and December 31, 2013. |
Stockholders_Equity_of_the_Com
Stockholders' Equity of the Company | 6 Months Ended | |||
Jun. 30, 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. The following table sets forth information regarding sales of our common stock under our at-the-market offering program for the three and six months ended June 30, 2014: | ||||
Three and Six months | ||||
ended June 30, 2014 | ||||
(in millions, except share | ||||
and per share data) | ||||
Shares of common stock sold during the year | 370,700 | |||
Weighted average price per common share | $ | 61.01 | ||
Aggregate gross proceeds | $ | 22.6 | ||
Aggregate net proceeds after sales agent compensation | $ | 22.3 | ||
There were no sales of our common stock under our at-the-market offering program for the three months ended March 31, 2014. | ||||
The proceeds from the sales were used to fund acquisitions and development and redevelopment expenditures and for general corporate purposes. Since commencement of the program, we have sold 2,553,961 shares of common stock having an aggregate gross sales price of $127.9 million. As of June 30, 2014, shares of common stock having an aggregate gross sales price of up to $72.1 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. |
Partners_Capital_of_the_Operat
Partners' Capital of the Operating Partnership | 6 Months Ended | ||||||||
Jun. 30, 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: | |||||||||
June 30, 2014 | December 31, 2013 | June 30, 2013 | |||||||
Company owned common units in the Operating Partnership | 82,916,410 | 82,153,944 | 75,710,907 | ||||||
Company owned general partnership interest | 97.9 | % | 97.8 | % | 97.7 | % | |||
Noncontrolling common units of the Operating Partnership | 1,804,200 | 1,805,200 | 1,821,503 | ||||||
Ownership interest of noncontrolling interest | 2.1 | % | 2.2 | % | 2.3 | % | |||
For a further discussion of the noncontrolling common units as of June 30, 2014 and December 31, 2013, refer to Note 6. |
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | |
Jun. 30, 2014 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |
Share-Based Compensation | ' | |
Share-Based Compensation | ||
Stockholder Approved Equity Compensation Plans | ||
As of June 30, 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. At our Annual Meeting of Stockholders, on May 22, 2014, stockholders approved an amendment of the 2006 Plan, which included an increase in the share limit to 7,120,000 shares. As of June 30, 2014, 730,127 shares were available for grant under the amended 2006 Plan. | ||
2014 Share-Based Compensation Grants | ||
On January 29, 2014, the Executive Compensation Committee of the Company’s Board of Directors awarded to certain officers of the Company under the 2006 Plan of 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”). As of the RSU grant date, an insufficient number of shares were available under the 2006 Plan to settle these RSUs in stock and the RSUs were subject to liability accounting. As discussed above, on May 22, 2014 we received stockholder approval for an increase to our share limit which resulted in a sufficient number of shares authorized by our stockholders for issuance under the 2006 Plan to cover settlement of these awards. As a result, as of May 22, 2014 given we have the ability to deliver shares to settle the RSUs, we reclassified these awards as equity awards and re-measured the fair value of the awards as of that date. | ||
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 total 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 from the 119,098 RSUs granted 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. As of March 31, 2014, we recorded compensation expense for the award based upon the fair value at period end of $63.44, as we had an insufficient number of shares available for issuance under the 2006 Plan at that time. As discussed above, upon stockholder approval of the amended 2006 Plan on May 22, 2014, we were required to re-measure the fair value of the 2014 Performance-Based RSU Grant and record compensation expense based on the fair value at that date for the cumulative portion of the performance period that had elapsed. The total fair value of the 2014 Performance-Based RSU Grant was $7.7 million at May 22, 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 six months ended June 30, 2014, we recorded compensation expense based upon the $65.03 fair value at May 22, 2014. The following table summarizes the assumptions utilized in the Monte Carlo simulation pricing model: | ||
Fair Value Assumptions | ||
Fair value per share at May 22, 2014 | $65.03 | |
Expected share price volatility | 24.00% | |
Risk-free interest rate | 0.61% | |
Remaining expected life | 2.6 | |
The computation of expected volatility is based on a blend of the historical volatility of our shares of common stock over approximately five years as that is expected to be most consistent with future volatility and equates to a time period twice as long as the approximate two and a half year remaining 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 May 22, 2014. The expected dividend yield is estimated by examining the average of the historical dividend yield levels over the remaining 2.6 year term of the RSUs and our current annualized dividend yield as of May 22, 2014. The expected life of the RSUs is equal to the remaining 2.6 year vesting period at May 22, 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. As of March 31, 2014, we recorded compensation expense for the award based upon the fair value at period end of $51.64, because at that time an insufficient number of shares were available for issuance under the 2006 Plan. As discussed above, upon stockholder approval of the amended 2006 Plan on May 22, 2014, we were required to re-measure the fair value of the 2014 Time-Based RSU Grant and record compensation expense based on the fair value at that date, for the cumulative portion of the performance period that had elapsed. The total fair value was $7.1 million, which was based on the $60.16 closing share price of the Company’s common stock on the NYSE on May 22, 2014. | ||
Share-Based Award Activity | ||
During the six months ended June 30, 2014, 325,000 non-qualified stock options were exercised and issued at an exercise price per share equal to $42.61. The total shares exercised include 16,908 common shares that were tendered in accordance with the terms of the 2006 Plan to satisfy minimum statutory tax withholding requirements and exercise price related to the non-qualified stock options exercised. We accept the return of shares at the current quoted closing share price of the Company’s common stock to satisfy tax obligations and cover the exercise price. | ||
Share-Based Compensation Cost Recorded During the Period | ||
The total compensation cost for all share-based compensation programs was $3.5 million and $2.3 million for the three months ended June 30, 2014 and 2013, respectively, and $6.4 million and $4.7 million for the six months ended June 30, 2014 and 2013, respectively. Of the total share-based compensation costs, $0.5 million and $0.2 million was capitalized as part of real estate assets for the three months ended June 30, 2014 and 2013, respectively, and $0.9 million and $0.4 million was capitalized as part of real estate assets for the six months ended June 30, 2014 and 2013, respectively. As of June 30, 2014, there was approximately $35.9 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 3.1 years. The remaining compensation cost related to these nonvested incentive awards had been recognized in periods prior to June 30, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
General | |
As of June 30, 2014, we had commitments of approximately $635.8 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 | 6 Months Ended | |||||||||||||||
Jun. 30, 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 June 30, 2014 and December 31, 2013: | ||||||||||||||||
Fair Value (Level 1) (1) | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Description | (in thousands) | |||||||||||||||
Marketable securities (2) | $ | 11,747 | $ | 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 and six months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Description | (in thousands) | |||||||||||||||
Net gain (loss) on marketable securities | $ | 392 | $ | (30 | ) | $ | 546 | $ | 326 | |||||||
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 June 30, 2014 and December 31, 2013: | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(in thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Secured debt (1) | $ | 553,427 | $ | 567,933 | $ | 560,434 | $ | 568,760 | ||||||||
Exchangeable senior notes, net (1) | 170,704 | 174,424 | 168,372 | 178,190 | ||||||||||||
Unsecured debt, net (2) | 1,431,301 | 1,523,861 | 1,431,132 | 1,523,052 | ||||||||||||
Unsecured line of credit (1) | 90,000 | 90,506 | 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 $873.6 million and $936.5 million, respectively, as of June 30, 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 $587.4 million, respectively, as of June 30, 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 | 6 Months Ended |
Jun. 30, 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 $1.9 million and $3.7 million during the three and six months ended June 30, 2014, will be recorded as other property income on a straight line basis through the early lease termination date. During the three and six months ended June 30, 2014, the Company also recognized approximately $0.4 million and $0.9 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 | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Discontinued Operations | ' | |||||||||||||||
Discontinued Operations and Land Dispositions | ||||||||||||||||
Operating Property Dispositions | ||||||||||||||||
The following table summarizes the operating properties sold during the six months ended June 30, 2014: | ||||||||||||||||
Location | Property Type | Month of Disposition | Number of Buildings | Rentable Square Feet | ||||||||||||
San Diego Properties, San Diego, CA (1) | Office | January | 12 | 1,049,035 | ||||||||||||
9785 & 9791 Towne Centre Drive, San Diego, CA | Office | June | 2 | 126,000 | ||||||||||||
Total 2014 Dispositions | 14 | 1,175,035 | ||||||||||||||
________________________ | ||||||||||||||||
-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. These properties were held for sale as of December 31, 2013. | |||||||||||||||
Discontinued Operations | ||||||||||||||||
Discontinued operations for the three months ended June 30, 2014 includes the gains on dispositions of $14.7 million related to the June 2014 office property dispositions. The operations related to the June 2014 office property dispositions were immaterial for classification as discontinued operations. For the six months ended June 30, 2014 and 2013, discontinued operations also included the income of the twelve operating office properties sold in January 2014. For the three and six months ended June 30, 2013, discontinued operations also included the income from three operating office properties that were sold during those respective periods in 2013. The following table summarizes the revenue and expense components that comprise income from discontinued operations for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | — | $ | 5,957 | $ | 458 | $ | 11,730 | ||||||||
Tenant reimbursements | — | 682 | 66 | 1,439 | ||||||||||||
Other property income | — | 4 | 9 | 7 | ||||||||||||
Total revenues | — | 6,643 | 533 | 13,176 | ||||||||||||
Expenses: | ||||||||||||||||
Property expenses | — | 932 | 87 | 1,900 | ||||||||||||
Real estate taxes | — | 691 | 69 | 1,364 | ||||||||||||
Depreciation and amortization | — | 2,777 | — | 5,467 | ||||||||||||
Total expenses | — | 4,400 | 156 | 8,731 | ||||||||||||
Income from discontinued operations before gains on dispositions of discontinued operations | — | 2,243 | 377 | 4,445 | ||||||||||||
Gains on dispositions of discontinued operations | 14,689 | 423 | 104,804 | 423 | ||||||||||||
Total income from discontinued operations | $ | 14,689 | $ | 2,666 | $ | 105,181 | $ | 4,868 | ||||||||
Land Disposition | ||||||||||||||||
During the six months ended June 30, 2014, the Company sold a land parcel located at 10850 Via Frontera in the Rancho Bernardo submarket of San Diego, California for a gross sales price of $33.1 million, resulting in a gain on sale of $3.5 million. The land parcel noted above did not meet the criteria for classification as discontinued operations because the parcel did not have any significant operations prior to disposal. Therefore, the gain on sale is included on our consolidated statements of operations as gain on sale of land within continuing operations. | ||||||||||||||||
Restricted Cash Related to Dispositions | ||||||||||||||||
As of June 30, 2014 and December 31, 2013, approximately $75.9 million and $32.2 million, respectively, of net proceeds related to the land and office properties disposed of during the six months ended June 30, 2014 and the year ended December 31, 2013 were temporarily being held at qualified intermediaries, 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 June 30, 2014 and December 31, 2013. In July 2014, $15.3 million of the cash proceeds at June 30, 2014 were released from the qualified intermediary. 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. |
Net_Income_Available_to_Common
Net Income Available to Common Stockholders Per Share of the Company | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income (Loss) Available to Common Stockholders Per Share of the Company | ' | |||||||||||||||
Net Income 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 available to common stockholders for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except share and per share amounts) | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 16,454 | $ | 7,437 | $ | 27,894 | $ | 7,623 | ||||||||
Income from continuing operations attributable to noncontrolling common units of the Operating Partnership | (295 | ) | (96 | ) | (467 | ) | (24 | ) | ||||||||
Preferred dividends | (3,312 | ) | (3,313 | ) | (6,625 | ) | (6,626 | ) | ||||||||
Allocation to participating securities (1) | (426 | ) | (424 | ) | (853 | ) | (847 | ) | ||||||||
Numerator for basic and diluted income from continuing operations available to common stockholders | 12,421 | 3,604 | 19,949 | 126 | ||||||||||||
Income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 | ||||||||||||
Income from discontinued operations attributable to noncontrolling common units of the Operating Partnership | (308 | ) | (61 | ) | (2,223 | ) | (111 | ) | ||||||||
Numerator for basic and diluted net income available to common stockholders | $ | 26,802 | $ | 6,209 | $ | 122,907 | $ | 4,883 | ||||||||
Denominator: | ||||||||||||||||
Basic weighted average vested shares outstanding | 82,277,845 | 75,486,380 | 82,201,615 | 75,233,350 | ||||||||||||
Effect of dilutive securities | 2,324,487 | 1,967,309 | 2,173,640 | 1,825,594 | ||||||||||||
Diluted weighted average vested shares and common share equivalents outstanding | 84,602,332 | 77,453,689 | 84,375,255 | 77,058,944 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Income from continuing operations available to common stockholders per share | $ | 0.15 | $ | 0.05 | $ | 0.24 | $ | 0 | ||||||||
Income from discontinued operations per common share | 0.18 | 0.03 | 1.25 | 0.06 | ||||||||||||
Net income available to common stockholders per share | $ | 0.33 | $ | 0.08 | $ | 1.49 | $ | 0.06 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Income from continuing operations available to common stockholders per share | $ | 0.15 | $ | 0.05 | $ | 0.24 | $ | 0 | ||||||||
Income from discontinued operations per common share | 0.17 | 0.03 | 1.22 | 0.06 | ||||||||||||
Net income available to common stockholders per share | $ | 0.32 | $ | 0.08 | $ | 1.46 | $ | 0.06 | ||||||||
________________________ | ||||||||||||||||
-1 | Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. | |||||||||||||||
The impact of the contingently issuable shares, which consist of the 4.25% Exchangeable Notes and stock options, were considered in our diluted earnings per share calculation for the three and six months ended June 30, 2014 and 2013 because we reported income from continuing operations attributable to common stockholders in the respective periods and the effect was dilutive. | ||||||||||||||||
The 2014 Performance-Based RSUs and our other nonvested market measure-based RSUs are not included in dilutive securities as of June 30, 2014 because they are not included until 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 June 30, 2013 because they were not considered contingently issuable shares as not all the necessary performance conditions were met. |
Net_Income_Available_to_Common1
Net Income Available to Common Unitholders Per Unit of the Operating Partnership | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Unit [Abstract] | ' | |||||||||||||||
Net Income (Loss) Available to Common Unitholders per Unit of the Operating Partnership | ' | |||||||||||||||
Net Income 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 available to common unitholders for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except unit and per unit amounts) | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 16,454 | $ | 7,437 | $ | 27,894 | $ | 7,623 | ||||||||
Income from continuing operations attributable to noncontrolling interests in consolidated subsidiaries | (77 | ) | (62 | ) | (142 | ) | (131 | ) | ||||||||
Preferred distributions | (3,312 | ) | (3,313 | ) | (6,625 | ) | (6,626 | ) | ||||||||
Allocation to participating securities (1) | (426 | ) | (424 | ) | (853 | ) | (847 | ) | ||||||||
Numerator for basic and diluted income from continuing operations available to common unitholders | 12,639 | 3,638 | 20,274 | 19 | ||||||||||||
Income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 | ||||||||||||
Numerator for basic and diluted net income available to common unitholders | $ | 27,328 | $ | 6,304 | $ | 125,455 | $ | 4,887 | ||||||||
Denominator: | ||||||||||||||||
Basic weighted average vested units outstanding | 84,082,045 | 77,310,685 | 84,005,942 | 77,058,748 | ||||||||||||
Effect of dilutive securities | 2,324,487 | 1,967,309 | 2,173,640 | 1,825,594 | ||||||||||||
Diluted weighted average vested units and common unit equivalents outstanding | 86,406,532 | 79,277,994 | 86,179,582 | 78,884,342 | ||||||||||||
Basic earnings per unit: | ||||||||||||||||
Income from continuing operations available to common unitholders per unit | $ | 0.15 | $ | 0.05 | $ | 0.24 | $ | 0 | ||||||||
Income from discontinued operations per common unit | 0.18 | 0.03 | 1.25 | 0.06 | ||||||||||||
Net income available to common unitholders per unit | $ | 0.33 | $ | 0.08 | $ | 1.49 | $ | 0.06 | ||||||||
Diluted earnings per unit: | ||||||||||||||||
Income from continuing operations available to common unitholders per unit | $ | 0.15 | $ | 0.05 | $ | 0.24 | $ | 0 | ||||||||
Income from discontinued operations per common unit | 0.17 | 0.03 | 1.22 | 0.06 | ||||||||||||
Net income available to common unitholders per unit | $ | 0.32 | $ | 0.08 | $ | 1.46 | $ | 0.06 | ||||||||
________________________ | ||||||||||||||||
-1 | Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. | |||||||||||||||
The impact of the contingently issuable units, which consist of the 4.25% Exchangeable Notes and stock options, were considered in our diluted earnings per unit calculation for the three and six months ended June 30, 2014 and 2013 because the Operating Partnership reported income from continuing operations attributable to common unitholders in the respective periods and the effect was dilutive. | ||||||||||||||||
The 2014 Performance-Based RSUs and our other nonvested market measure-based RSUs are not included in dilutive securities as of June 30, 2014 because they are not included until 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 June 30, 2013 because they were not considered contingently issuable shares as not all the necessary performance conditions were met. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On July 16, 2014, aggregate dividends, distributions and dividend equivalents of $30.1 million were paid to common stockholders and common unitholders of record on June 30, 2014 and RSU holders of record on July 16, 2014. | |
During the three months ended June 30, 2014, the Company received notices for exchange for $37.0 million aggregate principal amount of the 4.25% Exchangeable Notes (See Note 5). | |
On July 21, 2014, the Company announced that it executed a merger agreement to acquire all of the outstanding shares of San Francisco Flowers Growers Association (“SFFGA”), a privately owned entity whose only material asset as of the closing of the proposed merger is anticipated to be a 1.9 acre land site in the Central SOMA submarket of San Francisco, California, in a transaction valued at approximately $27.0 million. The acquisition is contingent upon the approval and adoption of the merger agreement and approval of the principal terms of the merger by SFFGA’s shareholders. The acquisition will be financed by the Company directly issuing approximately $22.0 million of its common stock to SFFGA shareholders and the immediate repayment of approximately $4.6 million of outstanding debt and transaction related expenses. On July 21, 2014, the Company filed a Form S-4 to register the shares to be issued to SFGGA’s shareholders. It is anticipated that the transaction will close by the end of 2014. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 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/A 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 June 30, 2014, the consolidated financial statements of the Company and the Operating Partnership included two variable interest entities (“VIEs”), in which we were deemed to be the primary beneficiary. One of the VIEs was established during the second quarter of 2014 to facilitate potential Section 1031 Exchanges. The other VIE, Redwood City Partners, LLC, was established in the second quarter of 2013 in connection with an undeveloped land acquisition. The impact of consolidating the VIEs increased the Company’s total assets, liabilities and noncontrolling interests by approximately $175.4 million (of which $170.7 million related to real estate held for investment on our consolidated balance sheet), approximately $12.8 million and approximately $4.9 million, respectively, as of June 30, 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 potential Section 1031 Exchanges. 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 June 19, 2014, the Financial Accounting Standards Board (“FASB”) issued their final standard to amend the accounting guidance for stock compensation tied to performance targets (Accounting Standards Update (“ASU”) No. 2014-12). The issue is the result of a consensus of the FASB Emerging Issues Task Force (Issue No. 13-D). The standard requires that a performance target that could be achieved after the requisite service period be treated as a performance condition, and as a result, this type of performance condition may delay expense recognition until achievement of the performance target is probable. The ASU is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015, and early adoption is permitted. The Company will adopt the guidance effective January 1, 2016 and the guidance is not anticipated to have a material impact on our consolidated financial statements or notes to our consolidated financial statements. | |
On May 28, 2014, the FASB issued their final standard on revenue from contracts with customers. The guidance specifically notes that lease contracts with customers are a scope exception. The standard (ASU No. 2014-09) outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. The ASU is effective for annual reporting periods (including interim periods), beginning after December 15, 2016, and early adoption is not permitted. The Company will adopt the guidance effective January 1, 2017 and is currently assessing the impact on our consolidated financial statements and notes to our consolidated financial statements. | |
On April 10, 2014, the FASB issued final guidance to change the criteria for reporting discontinued operations while enhancing disclosures in this area (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. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Summary of real estate properties | ' | |||||||||||
As of June 30, 2014, the following properties were excluded from our stabilized portfolio: | ||||||||||||
Number of Properties | Estimated Rentable | |||||||||||
Square Feet | ||||||||||||
Development properties under construction (1) | 6 | 2,548,000 | ||||||||||
_______________ | ||||||||||||
-1 | Estimated rentable square feet upon completion. | |||||||||||
Number of | Rentable | Number of | Percentage | |||||||||
Buildings | Square Feet | Tenants | Occupied | |||||||||
Stabilized Office Properties | 105 | 13,189,326 | 532 | 93.6 | % | |||||||
Acquisitions_Tables
Acquisitions (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||
Schedule of Significant Acquisitions | ' | |||||||||||||
During the six months ended June 30, 2014, we acquired one undeveloped land site listed below from an unrelated third party. The acquisition was funded with proceeds from the Company’s at-the-market stock offering program (see Note 7) and disposition proceeds (see Note 13). | ||||||||||||||
Project | Date of Acquisition | Type | Purchase Price | |||||||||||
(in millions) | ||||||||||||||
Kilroy Mission Bay, San Francisco, CA (1) (2) | 23-May-14 | Land | $ | 95 | ||||||||||
Office Properties Acquisitions [Member] | ' | |||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||
Acquired operating properties from unrelated third parties | ' | |||||||||||||
During the six months ended June 30, 2014, we acquired the one operating office property listed below, from an unrelated third party. The acquisition was funded with proceeds from 2013 and 2014 dispositions (see Note 13). | ||||||||||||||
Property | Date of Acquisition | Number of | Rentable Square | Occupancy as of June 30, 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) at the time of the acquisition. | |||||||||||||
-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) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 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 June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Deferred Leasing Costs and Acquisition-Related Intangible Assets, net: | ||||||||||||||||||||||||
Deferred leasing costs | $ | 184,254 | $ | 178,720 | ||||||||||||||||||||
Accumulated amortization | (70,997 | ) | (63,246 | ) | ||||||||||||||||||||
Deferred leasing costs, net | 113,257 | 115,474 | ||||||||||||||||||||||
Above-market operating leases | 26,524 | 27,635 | ||||||||||||||||||||||
Accumulated amortization | (16,097 | ) | (14,283 | ) | ||||||||||||||||||||
Above-market operating leases, net | 10,427 | 13,352 | ||||||||||||||||||||||
In-place leases | 100,138 | 100,318 | ||||||||||||||||||||||
Accumulated amortization | (45,454 | ) | (42,999 | ) | ||||||||||||||||||||
In-place leases, net | 54,684 | 57,319 | ||||||||||||||||||||||
Below-market ground lease obligation | 490 | 490 | ||||||||||||||||||||||
Accumulated amortization | (17 | ) | (13 | ) | ||||||||||||||||||||
Below-market ground lease obligation, net | 473 | 477 | ||||||||||||||||||||||
Total deferred leasing costs and acquisition-related intangible assets, net | $ | 178,841 | $ | 186,622 | ||||||||||||||||||||
Acquisition-Related Intangible Liabilities, net: (1) | ||||||||||||||||||||||||
Below-market operating leases | $ | 69,737 | $ | 69,385 | ||||||||||||||||||||
Accumulated amortization | (28,552 | ) | (25,706 | ) | ||||||||||||||||||||
Below-market operating leases, net | 41,185 | 43,679 | ||||||||||||||||||||||
Above-market ground lease obligation | 6,320 | 6,320 | ||||||||||||||||||||||
Accumulated amortization | (273 | ) | (223 | ) | ||||||||||||||||||||
Above-market ground lease obligation, net | 6,047 | 6,097 | ||||||||||||||||||||||
Total acquisition-related intangible liabilities, net | $ | 47,232 | $ | 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 and six months ended June 30, 2014 and 2013: | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Deferred leasing costs (1) | $ | 6,771 | $ | 6,093 | $ | 13,551 | $ | 13,937 | ||||||||||||||||
Above-market operating leases (2) | 1,435 | 1,358 | 2,925 | 2,796 | ||||||||||||||||||||
In-place leases (1) | 5,785 | 7,412 | 11,921 | 14,870 | ||||||||||||||||||||
Below-market ground lease obligation (3) | — | 2 | — | 4 | ||||||||||||||||||||
Below-market operating leases (4) | (4,021 | ) | (3,388 | ) | (7,114 | ) | (6,873 | ) | ||||||||||||||||
Above-market ground lease obligation (5) | (25 | ) | (25 | ) | (50 | ) | (50 | ) | ||||||||||||||||
Total | $ | 9,945 | $ | 11,452 | $ | 21,233 | $ | 24,684 | ||||||||||||||||
_______________ | ||||||||||||||||||||||||
-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 June 30, 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 | $ | 13,223 | $ | 2,395 | $ | 9,490 | $ | 4 | $ | (5,781 | ) | $ | (51 | ) | ||||||||||
2015 | 22,627 | 2,918 | 13,562 | 8 | (9,577 | ) | (101 | ) | ||||||||||||||||
2016 | 19,813 | 1,891 | 10,475 | 8 | (7,847 | ) | (101 | ) | ||||||||||||||||
2017 | 17,034 | 1,573 | 8,774 | 8 | (6,780 | ) | (101 | ) | ||||||||||||||||
2018 | 13,654 | 973 | 5,689 | 8 | (5,177 | ) | (101 | ) | ||||||||||||||||
Thereafter | 26,906 | 677 | 6,694 | 437 | (6,023 | ) | (5,592 | ) | ||||||||||||||||
Total | $ | 113,257 | $ | 10,427 | $ | 54,684 | $ | 473 | $ | (41,185 | ) | $ | (6,047 | ) | ||||||||||
_______________ | ||||||||||||||||||||||||
-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) | 6 Months Ended | |||||||
Jun. 30, 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 June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Current receivables | $ | 12,720 | $ | 12,866 | ||||
Allowance for uncollectible tenant receivables | (2,132 | ) | (2,123 | ) | ||||
Current receivables, net | $ | 10,588 | $ | 10,743 | ||||
Deferred Rent Receivables, net | ' | |||||||
Deferred rent receivables, net consisted of the following as of June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Deferred rent receivables | $ | 136,259 | $ | 129,198 | ||||
Allowance for deferred rent receivables | (1,990 | ) | (2,075 | ) | ||||
Deferred rent receivables, net | $ | 134,269 | $ | 127,123 | ||||
Secured_and_Unsecured_Debt_of_1
Secured and Unsecured Debt of the Operating Partnership (Tables) (Kilroy Realty, L.P. [Member]) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Debt Instrument [Line Items] | ' | |||||||||||||||
Schedule of Term Loan Facilities [Table Text Block] | ' | |||||||||||||||
The following table summarizes the balance and terms of our term loan facility as of June 30, 2014 and December 31, 2013: | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Outstanding borrowings | $ | 150,000 | $ | 150,000 | ||||||||||||
Interest rate | 1.4 | % | 1.75 | % | ||||||||||||
Maturity date | Jul-19 | Mar-16 | ||||||||||||||
Per Share Average Trading Price Of Companys Common Stock On Stock Exchange [Tables Text Block] | ' | |||||||||||||||
For the three and six months ended June 30, 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 June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Per share average trading price of the Company’s common stock | $60.39 | $54.49 | $57.83 | $52.86 | ||||||||||||
Schedule of Debt Conversions, Fair Value Upon Conversion [Table Text Block] | ' | |||||||||||||||
The 4.25% Exchangeable Notes were exchangeable as of June 30, 2014 and June 30, 2013. If all of the 4.25% Exchangeable Notes were exchanged, the approximate fair value of the shares upon exchange at June 30, 2014 and 2013, using the per share average trading price presented in the table above, would have been as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Approximate fair value of shares upon exchange | $ | 293,595 | $ | 259,200 | $ | 285,720 | $ | 254,000 | ||||||||
Principal amount of the 4.25% Exchangeable Notes | 172,500 | 172,500 | 172,500 | 172,500 | ||||||||||||
Approximate fair value in excess amount of principal amount | $ | 121,095 | $ | 86,700 | $ | 113,220 | $ | 81,500 | ||||||||
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 and six months June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Contractual interest payments | $ | 1,636 | $ | 1,833 | $ | 3,469 | $ | 3,666 | ||||||||
Amortization of discount | 1,177 | 1,097 | 2,333 | 2,175 | ||||||||||||
Interest expense attributable to the 4.25% Exchangeable Notes | $ | 2,813 | $ | 2,930 | $ | 5,802 | $ | 5,841 | ||||||||
Capped call Transactions | ' | |||||||||||||||
The table below summarizes our capped call option positions for the 4.25% Exchangeable Notes as of June 30, 2014 and December 31, 2013. | ||||||||||||||||
4.25% Exchangeable Notes | ||||||||||||||||
Referenced shares of common stock (1) | 4,800,796 | |||||||||||||||
Exchange price, including effect of capped calls | $ | 42.81 | ||||||||||||||
________________________ | ||||||||||||||||
-1 | As of the date of this report, the Company’s capped call option position has been reduced to 4,717,498 shares of common stock. | |||||||||||||||
Unsecured Revolving Credit Facility | ' | |||||||||||||||
The following table summarizes the balance and terms of our unsecured revolving credit facility as of June 30, 2014 and December 31, 2013: | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Outstanding borrowings | $ | 90,000 | $ | 45,000 | ||||||||||||
Remaining borrowing capacity | 510,000 | 455,000 | ||||||||||||||
Total borrowing capacity (1) | $ | 600,000 | $ | 500,000 | ||||||||||||
Interest rate (2)(3) | 1.41 | % | 1.62 | % | ||||||||||||
Facility fee-annual rate (4) | 0.25% | 0.30% | ||||||||||||||
Maturity date | Jul-19 | Apr-17 | ||||||||||||||
_______________ | ||||||||||||||||
-1 | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $300.0 million under an accordion feature under the terms of the unsecured revolving credit facility and term loan facility. | |||||||||||||||
-2 | Our revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.250% as of June 30, 2014. | |||||||||||||||
-3 | Our revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.450% as of December 31, 2013. | |||||||||||||||
-4 | Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of June 30, 2014, $6.5 million of deferred financing costs remains to be amortized through the amended maturity date of our unsecured revolving credit facility. | |||||||||||||||
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 June 30, 2014: | ||||||||||||||||
Year | (in thousands) | |||||||||||||||
Remaining 2014 | $ | 260,485 | ||||||||||||||
2015 | 395,104 | |||||||||||||||
2016 | 99,431 | |||||||||||||||
2017 | 71,748 | |||||||||||||||
2018 | 451,728 | |||||||||||||||
Thereafter | 958,013 | |||||||||||||||
Total (1) | $ | 2,236,509 | ||||||||||||||
________________________ | ||||||||||||||||
-1 | Includes gross principal balance of outstanding debt before impact of net unamortized premiums totaling approximately $8.9 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 and six months ended June 30, 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 June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Gross interest expense | $ | 27,770 | $ | 27,914 | $ | 55,804 | $ | 55,380 | ||||||||
Capitalized interest and loan fees | (11,750 | ) | (8,480 | ) | (22,532 | ) | (16,212 | ) | ||||||||
Interest expense | $ | 16,020 | $ | 19,434 | $ | 33,272 | $ | 39,168 | ||||||||
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 June 30, 2014 and December 31, 2013: | ||||||||||||||||
Type of Debt | Annual Stated Interest Rate (1) | GAAP | Maturity Date | June 30, 2014 (3) | December 31, 2013 (3) | |||||||||||
Effective Rate (1)(2) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Mortgage note payable | 4.27% | 4.27% | Feb-18 | $ | 131,954 | $ | 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 | 90,884 | 92,502 | |||||||||||
Mortgage note payable | 6.51% | 6.51% | Feb-17 | 67,163 | 67,663 | |||||||||||
Mortgage note payable (4) | 5.23% | 3.50% | Jan-16 | 53,683 | 54,570 | |||||||||||
Mortgage note payable (4) | 5.57% | 3.25% | Feb-16 | 40,956 | 41,654 | |||||||||||
Mortgage note payable (4) | 5.09% | 3.50% | Aug-15 | 34,578 | 34,845 | |||||||||||
Mortgage note payable (4) | 4.94% | 4.00% | Apr-15 | 26,971 | 27,641 | |||||||||||
Mortgage note payable | 7.15% | 7.15% | May-17 | 7,791 | 8,972 | |||||||||||
Other | Various | Various | Various | 2,447 | 2,470 | |||||||||||
Total | $ | 553,427 | $ | 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. | |||||||||||||||
Exchangeable 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 June 30, 2014 and December 31, 2013. | ||||||||||||||||
4.25% Exchangeable Notes | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Principal amount | $ | 172,500 | $ | 172,500 | ||||||||||||
Unamortized discount | (1,796 | ) | (4,128 | ) | ||||||||||||
Net carrying amount of liability component | $ | 170,704 | $ | 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. | |||||||||||||||
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 June 30, 2014 and December 31, 2013: | ||||||||||||||||
Principal Amount as of | ||||||||||||||||
Issuance date | Maturity date | Stated | Effective interest rate (1) | June 30, | 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 | (85 | ) | (90 | ) | ||||||||||||
Net carrying amount | $ | 299,915 | $ | 299,910 | ||||||||||||
4.800% Unsecured Senior Notes (3) | Jul-11 | Jul-18 | 4.80% | 4.83% | $ | 325,000 | $ | 325,000 | ||||||||
Unamortized discount | (302 | ) | (339 | ) | ||||||||||||
Net carrying amount | $ | 324,698 | $ | 324,661 | ||||||||||||
6.625% Unsecured Senior Notes (4) | May-10 | Jun-20 | 6.63% | 6.74% | $ | 250,000 | $ | 250,000 | ||||||||
Unamortized discount | (1,259 | ) | (1,367 | ) | ||||||||||||
Net carrying amount | $ | 248,741 | $ | 248,633 | ||||||||||||
5.000% Unsecured Senior Notes (5) | Nov-10 | Nov-15 | 5.00% | 5.01% | $ | 325,000 | $ | 325,000 | ||||||||
Unamortized discount | (53 | ) | (73 | ) | ||||||||||||
Net carrying amount | $ | 324,947 | $ | 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. |
Stockholders_Equity_of_the_Com1
Stockholders' Equity of the Company (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Class of Stock [Line Items] | ' | |||
Schedule of Stockholders Equity [Table Text Block] | ' | |||
The following table sets forth information regarding sales of our common stock under our at-the-market offering program for the three and six months ended June 30, 2014: | ||||
Three and Six months | ||||
ended June 30, 2014 | ||||
(in millions, except share | ||||
and per share data) | ||||
Shares of common stock sold during the year | 370,700 | |||
Weighted average price per common share | $ | 61.01 | ||
Aggregate gross proceeds | $ | 22.6 | ||
Aggregate net proceeds after sales agent compensation | $ | 22.3 | ||
Partners_Capital_of_the_Operat1
Partners' Capital of the Operating Partnership Ownership Interest (Tables) | 6 Months Ended | ||||||||
Jun. 30, 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: | |||||||||
June 30, 2014 | December 31, 2013 | June 30, 2013 | |||||||
Company owned common units in the Operating Partnership | 82,916,410 | 82,153,944 | 75,710,907 | ||||||
Company owned general partnership interest | 97.9 | % | 97.8 | % | 97.7 | % | |||
Noncontrolling common units of the Operating Partnership | 1,804,200 | 1,805,200 | 1,821,503 | ||||||
Ownership interest of noncontrolling interest | 2.1 | % | 2.2 | % | 2.3 | % |
ShareBased_Compensation_ShareB
Share-Based Compensation Share-Based Compensation (Tables) | 6 Months Ended | |
Jun. 30, 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 | ||
Fair value per share at May 22, 2014 | $65.03 | |
Expected share price volatility | 24.00% | |
Risk-free interest rate | 0.61% | |
Remaining expected life | 2.6 |
Fair_Value_Measurements_and_Di1
Fair Value Measurements and Disclosures (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 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 June 30, 2014 and December 31, 2013: | ||||||||||||||||
Fair Value (Level 1) (1) | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Description | (in thousands) | |||||||||||||||
Marketable securities (2) | $ | 11,747 | $ | 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 and six months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Description | (in thousands) | |||||||||||||||
Net gain (loss) on marketable securities | $ | 392 | $ | (30 | ) | $ | 546 | $ | 326 | |||||||
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 June 30, 2014 and December 31, 2013: | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(in thousands) | ||||||||||||||||
Liabilities | ||||||||||||||||
Secured debt (1) | $ | 553,427 | $ | 567,933 | $ | 560,434 | $ | 568,760 | ||||||||
Exchangeable senior notes, net (1) | 170,704 | 174,424 | 168,372 | 178,190 | ||||||||||||
Unsecured debt, net (2) | 1,431,301 | 1,523,861 | 1,431,132 | 1,523,052 | ||||||||||||
Unsecured line of credit (1) | 90,000 | 90,506 | 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 $873.6 million and $936.5 million, respectively, as of June 30, 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 $587.4 million, respectively, as of June 30, 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) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Property Sold During The Period | ' | |||||||||||||||
The following table summarizes the operating properties sold during the six months ended June 30, 2014: | ||||||||||||||||
Location | Property Type | Month of Disposition | Number of Buildings | Rentable Square Feet | ||||||||||||
San Diego Properties, San Diego, CA (1) | Office | January | 12 | 1,049,035 | ||||||||||||
9785 & 9791 Towne Centre Drive, San Diego, CA | Office | June | 2 | 126,000 | ||||||||||||
Total 2014 Dispositions | 14 | 1,175,035 | ||||||||||||||
________________________ | ||||||||||||||||
-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. These properties were held for sale as of December 31, 2013. | |||||||||||||||
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 and six months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | — | $ | 5,957 | $ | 458 | $ | 11,730 | ||||||||
Tenant reimbursements | — | 682 | 66 | 1,439 | ||||||||||||
Other property income | — | 4 | 9 | 7 | ||||||||||||
Total revenues | — | 6,643 | 533 | 13,176 | ||||||||||||
Expenses: | ||||||||||||||||
Property expenses | — | 932 | 87 | 1,900 | ||||||||||||
Real estate taxes | — | 691 | 69 | 1,364 | ||||||||||||
Depreciation and amortization | — | 2,777 | — | 5,467 | ||||||||||||
Total expenses | — | 4,400 | 156 | 8,731 | ||||||||||||
Income from discontinued operations before gains on dispositions of discontinued operations | — | 2,243 | 377 | 4,445 | ||||||||||||
Gains on dispositions of discontinued operations | 14,689 | 423 | 104,804 | 423 | ||||||||||||
Total income from discontinued operations | $ | 14,689 | $ | 2,666 | $ | 105,181 | $ | 4,868 | ||||||||
Net_Income_Available_to_Common2
Net Income Available to Common Stockholders Per Share of the Company (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 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 available to common stockholders for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except share and per share amounts) | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 16,454 | $ | 7,437 | $ | 27,894 | $ | 7,623 | ||||||||
Income from continuing operations attributable to noncontrolling common units of the Operating Partnership | (295 | ) | (96 | ) | (467 | ) | (24 | ) | ||||||||
Preferred dividends | (3,312 | ) | (3,313 | ) | (6,625 | ) | (6,626 | ) | ||||||||
Allocation to participating securities (1) | (426 | ) | (424 | ) | (853 | ) | (847 | ) | ||||||||
Numerator for basic and diluted income from continuing operations available to common stockholders | 12,421 | 3,604 | 19,949 | 126 | ||||||||||||
Income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 | ||||||||||||
Income from discontinued operations attributable to noncontrolling common units of the Operating Partnership | (308 | ) | (61 | ) | (2,223 | ) | (111 | ) | ||||||||
Numerator for basic and diluted net income available to common stockholders | $ | 26,802 | $ | 6,209 | $ | 122,907 | $ | 4,883 | ||||||||
Denominator: | ||||||||||||||||
Basic weighted average vested shares outstanding | 82,277,845 | 75,486,380 | 82,201,615 | 75,233,350 | ||||||||||||
Effect of dilutive securities | 2,324,487 | 1,967,309 | 2,173,640 | 1,825,594 | ||||||||||||
Diluted weighted average vested shares and common share equivalents outstanding | 84,602,332 | 77,453,689 | 84,375,255 | 77,058,944 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Income from continuing operations available to common stockholders per share | $ | 0.15 | $ | 0.05 | $ | 0.24 | $ | 0 | ||||||||
Income from discontinued operations per common share | 0.18 | 0.03 | 1.25 | 0.06 | ||||||||||||
Net income available to common stockholders per share | $ | 0.33 | $ | 0.08 | $ | 1.49 | $ | 0.06 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Income from continuing operations available to common stockholders per share | $ | 0.15 | $ | 0.05 | $ | 0.24 | $ | 0 | ||||||||
Income from discontinued operations per common share | 0.17 | 0.03 | 1.22 | 0.06 | ||||||||||||
Net income available to common stockholders per share | $ | 0.32 | $ | 0.08 | $ | 1.46 | $ | 0.06 | ||||||||
________________________ | ||||||||||||||||
-1 | Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. |
Net_Income_Available_to_Common3
Net Income Available to Common Unitholders Per Unit of the Operating Partnership (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Net Income 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 available to common stockholders for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except share and per share amounts) | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 16,454 | $ | 7,437 | $ | 27,894 | $ | 7,623 | ||||||||
Income from continuing operations attributable to noncontrolling common units of the Operating Partnership | (295 | ) | (96 | ) | (467 | ) | (24 | ) | ||||||||
Preferred dividends | (3,312 | ) | (3,313 | ) | (6,625 | ) | (6,626 | ) | ||||||||
Allocation to participating securities (1) | (426 | ) | (424 | ) | (853 | ) | (847 | ) | ||||||||
Numerator for basic and diluted income from continuing operations available to common stockholders | 12,421 | 3,604 | 19,949 | 126 | ||||||||||||
Income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 | ||||||||||||
Income from discontinued operations attributable to noncontrolling common units of the Operating Partnership | (308 | ) | (61 | ) | (2,223 | ) | (111 | ) | ||||||||
Numerator for basic and diluted net income available to common stockholders | $ | 26,802 | $ | 6,209 | $ | 122,907 | $ | 4,883 | ||||||||
Denominator: | ||||||||||||||||
Basic weighted average vested shares outstanding | 82,277,845 | 75,486,380 | 82,201,615 | 75,233,350 | ||||||||||||
Effect of dilutive securities | 2,324,487 | 1,967,309 | 2,173,640 | 1,825,594 | ||||||||||||
Diluted weighted average vested shares and common share equivalents outstanding | 84,602,332 | 77,453,689 | 84,375,255 | 77,058,944 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Income from continuing operations available to common stockholders per share | $ | 0.15 | $ | 0.05 | $ | 0.24 | $ | 0 | ||||||||
Income from discontinued operations per common share | 0.18 | 0.03 | 1.25 | 0.06 | ||||||||||||
Net income available to common stockholders per share | $ | 0.33 | $ | 0.08 | $ | 1.49 | $ | 0.06 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Income from continuing operations available to common stockholders per share | $ | 0.15 | $ | 0.05 | $ | 0.24 | $ | 0 | ||||||||
Income from discontinued operations per common share | 0.17 | 0.03 | 1.22 | 0.06 | ||||||||||||
Net income available to common stockholders per share | $ | 0.32 | $ | 0.08 | $ | 1.46 | $ | 0.06 | ||||||||
________________________ | ||||||||||||||||
-1 | Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. | |||||||||||||||
Kilroy Realty, L.P. [Member] | ' | |||||||||||||||
Net Income 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 available to common unitholders for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except unit and per unit amounts) | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 16,454 | $ | 7,437 | $ | 27,894 | $ | 7,623 | ||||||||
Income from continuing operations attributable to noncontrolling interests in consolidated subsidiaries | (77 | ) | (62 | ) | (142 | ) | (131 | ) | ||||||||
Preferred distributions | (3,312 | ) | (3,313 | ) | (6,625 | ) | (6,626 | ) | ||||||||
Allocation to participating securities (1) | (426 | ) | (424 | ) | (853 | ) | (847 | ) | ||||||||
Numerator for basic and diluted income from continuing operations available to common unitholders | 12,639 | 3,638 | 20,274 | 19 | ||||||||||||
Income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 | ||||||||||||
Numerator for basic and diluted net income available to common unitholders | $ | 27,328 | $ | 6,304 | $ | 125,455 | $ | 4,887 | ||||||||
Denominator: | ||||||||||||||||
Basic weighted average vested units outstanding | 84,082,045 | 77,310,685 | 84,005,942 | 77,058,748 | ||||||||||||
Effect of dilutive securities | 2,324,487 | 1,967,309 | 2,173,640 | 1,825,594 | ||||||||||||
Diluted weighted average vested units and common unit equivalents outstanding | 86,406,532 | 79,277,994 | 86,179,582 | 78,884,342 | ||||||||||||
Basic earnings per unit: | ||||||||||||||||
Income from continuing operations available to common unitholders per unit | $ | 0.15 | $ | 0.05 | $ | 0.24 | $ | 0 | ||||||||
Income from discontinued operations per common unit | 0.18 | 0.03 | 1.25 | 0.06 | ||||||||||||
Net income available to common unitholders per unit | $ | 0.33 | $ | 0.08 | $ | 1.49 | $ | 0.06 | ||||||||
Diluted earnings per unit: | ||||||||||||||||
Income from continuing operations available to common unitholders per unit | $ | 0.15 | $ | 0.05 | $ | 0.24 | $ | 0 | ||||||||
Income from discontinued operations per common unit | 0.17 | 0.03 | 1.22 | 0.06 | ||||||||||||
Net income available to common unitholders per unit | $ | 0.32 | $ | 0.08 | $ | 1.46 | $ | 0.06 | ||||||||
________________________ | ||||||||||||||||
-1 | Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. |
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation (Details) | 6 Months Ended | |
Jun. 30, 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 | 2,548,000 | [1] |
Office Properties [Member] | ' | |
Real Estate Properties [Line Items] | ' | |
Number of buildings | 105 | |
Rentable square feet | 13,189,326 | |
Number of Tenants | 532 | |
Percentage Occupied | 93.60% | |
[1] | Estimated rentable square feet upon completion. |
Organization_and_Basis_of_Pres4
Organization and Basis of Presentation (Details Textuals) (USD $) | 6 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
WASHINGTON | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty Finance, Inc. [Member] | Kilroy Realty, L.P. [Member] | Real Estate Investment [Member] | Real Estate Investment [Member] | Restricted cash [Member] | Restricted cash [Member] | ||||
building | ||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease-Up Properties, Maximum Stabilized Occupacy, Percentage | 95.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of buildings | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of general partnership interest owned by the company in the Operating Partnership | 97.90% | 97.70% | 97.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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% | 2.30% | 2.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' |
Percentage of limited partnership interest owned by Operating Partnership | ' | ' | ' | ' | 99.00% | ' | ' | 99.00% | ' | ' | ' | ' |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $175,400,000 | ' | $251,800,000 | ' | ' | ' | ' | ' | $170,700,000 | $234,500,000 | ' | ' |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 12,800,000 | ' | 12,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest in Variable Interest Entity | 4,885,000 | ' | 4,885,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Sale of Real Estate Held-for-investment | $353,581,000 | $14,409,000 | ' | ' | $353,581,000 | $14,409,000 | ' | ' | ' | ' | $75,900,000 | $32,200,000 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2013 | ||
sqft | |||
Business Acquisition [Line Items] | ' | ' | |
Below Market Lease, Acquired | $4,600,000 | ' | |
Business Acquisition, Date of Acquisition Agreement | 13-Mar-14 | ' | |
Rentable square feet | 79,000 | ' | |
Liabilities | ' | ' | |
Acquired Finite-lived Intangible Liabilities, Weighted Average Useful Life | '7 years | ' | |
Accounts Payable and Accrued Liabilities | 215,535,000 | 198,467,000 | |
Kilroy Mission Bay [Member] | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Payments to Acquire Land | 95,000,000 | ' | |
Liabilities | ' | ' | |
Accounts Payable and Accrued Liabilities | 2,300,000 | ' | |
401 Terry Avenue North, Seattle, WA [Member] | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Number of buildings | 1 | ' | |
Rentable square feet | 140,605 | ' | |
Occupancy as of June 30, 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 | ' | |
In-Place Leases [Member] | ' | ' | |
Assets | ' | ' | |
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 [Member] | ' | ' | |
Assets | ' | ' | |
Deferred leasing costs and acquisition-related intangible assets | $1,900,000 | ' | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '7 years | ' | |
[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) at the time of the acquisition. | ||
[3] | Represents below-market leases of approximately $4.6 million (with a weighted average amortization period of seven years). |
Deferred_Leasing_Costs_and_Acq2
Deferred Leasing Costs and Acquisition-related Intangible Assets and Liabilities, net (Details) (USD $) | Jun. 30, 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 | $178,841 | $186,622 | ||
Acquisition-related Intangible Liabilities, Net | ' | ' | ||
Total acquisitions-related intangible liabilities, net | 47,232 | [1] | 49,776 | [1] |
Deferred Leasing Costs [Member] | ' | ' | ||
Deferred Leasing Costs and Acquisition-related Intangible Assets, Net | ' | ' | ||
Finite-lived intangible assets, gross | 184,254 | 178,720 | ||
Finite-lived intangible assets accumulated amortization | -70,997 | -63,246 | ||
Finite-lived intangible assets, net | 113,257 | 115,474 | ||
Above-Market Leases [Member] | ' | ' | ||
Deferred Leasing Costs and Acquisition-related Intangible Assets, Net | ' | ' | ||
Finite-lived intangible assets, gross | 26,524 | 27,635 | ||
Finite-lived intangible assets accumulated amortization | -16,097 | -14,283 | ||
Finite-lived intangible assets, net | 10,427 | [2] | 13,352 | |
In-Place Leases [Member] | ' | ' | ||
Deferred Leasing Costs and Acquisition-related Intangible Assets, Net | ' | ' | ||
Finite-lived intangible assets, gross | 100,138 | 100,318 | ||
Finite-lived intangible assets accumulated amortization | -45,454 | -42,999 | ||
Finite-lived intangible assets, net | 54,684 | 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 | -17 | -13 | ||
Finite-lived intangible assets, net | 473 | [3] | 477 | |
Below Market Lease [Member] | ' | ' | ||
Acquisition-related Intangible Liabilities, Net | ' | ' | ||
FiniteLivedIntangibleLiabilitiesGross | 69,737 | 69,385 | ||
Accumulated amortization | -28,552 | -25,706 | ||
Acquisition-related Intangible Liabilities, net | 41,185 | [1],[4] | 43,679 | [1] |
Above-Market Ground Lease Obligation [Member] | ' | ' | ||
Acquisition-related Intangible Liabilities, Net | ' | ' | ||
FiniteLivedIntangibleLiabilitiesGross | 6,320 | 6,320 | ||
Accumulated amortization | -273 | -223 | ||
Acquisition-related Intangible Liabilities, net | $6,047 | [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 | 6 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Amortization Of Intangible Liabilities | ($9,945) | ($11,452) | ($21,233) | ($24,684) | ' | |||||
Deferred Leasing Costs [Member] | ' | ' | ' | ' | ' | |||||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Amortization of Intangible Assets | 6,771 | [1] | 6,093 | [1] | 13,551 | [1] | 13,937 | [1] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Remaining 2014 | 13,223 | ' | 13,223 | ' | ' | |||||
2015 | 22,627 | ' | 22,627 | ' | ' | |||||
2016 | 19,813 | ' | 19,813 | ' | ' | |||||
2017 | 17,034 | ' | 17,034 | ' | ' | |||||
2018 | 13,654 | ' | 13,654 | ' | ' | |||||
Thereafter | 26,906 | ' | 26,906 | ' | ' | |||||
Finite-lived intangible assets, net | 113,257 | ' | 113,257 | ' | 115,474 | |||||
Above-Market Leases [Member] | ' | ' | ' | ' | ' | |||||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Amortization of Intangible Assets | 1,435 | [2] | 1,358 | [2] | 2,925 | [2] | 2,796 | [2] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Remaining 2014 | 2,395 | [3] | ' | 2,395 | [3] | ' | ' | |||
2015 | 2,918 | [3] | ' | 2,918 | [3] | ' | ' | |||
2016 | 1,891 | [3] | ' | 1,891 | [3] | ' | ' | |||
2017 | 1,573 | [3] | ' | 1,573 | [3] | ' | ' | |||
2018 | 973 | [3] | ' | 973 | [3] | ' | ' | |||
Thereafter | 677 | [3] | ' | 677 | [3] | ' | ' | |||
Finite-lived intangible assets, net | 10,427 | [3] | ' | 10,427 | [3] | ' | 13,352 | |||
In-Place Leases [Member] | ' | ' | ' | ' | ' | |||||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Amortization of Intangible Assets | 5,785 | [1] | 7,412 | [1] | 11,921 | [1] | 14,870 | [1] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Remaining 2014 | 9,490 | ' | 9,490 | ' | ' | |||||
2015 | 13,562 | ' | 13,562 | ' | ' | |||||
2016 | 10,475 | ' | 10,475 | ' | ' | |||||
2017 | 8,774 | ' | 8,774 | ' | ' | |||||
2018 | 5,689 | ' | 5,689 | ' | ' | |||||
Thereafter | 6,694 | ' | 6,694 | ' | ' | |||||
Finite-lived intangible assets, net | 54,684 | ' | 54,684 | ' | 57,319 | |||||
Below Market Ground Lease Obligation [Member] | ' | ' | ' | ' | ' | |||||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Amortization of Intangible Assets | 0 | [4] | 2 | [4] | 0 | [4] | 4 | [4] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Remaining 2014 | 4 | [5] | ' | 4 | [5] | ' | ' | |||
2015 | 8 | [5] | ' | 8 | [5] | ' | ' | |||
2016 | 8 | [5] | ' | 8 | [5] | ' | ' | |||
2017 | 8 | [5] | ' | 8 | [5] | ' | ' | |||
2018 | 8 | [5] | ' | 8 | [5] | ' | ' | |||
Thereafter | 437 | [5] | ' | 437 | [5] | ' | ' | |||
Finite-lived intangible assets, net | 473 | [5] | ' | 473 | [5] | ' | 477 | |||
Below Market Leases [Member] | ' | ' | ' | ' | ' | |||||
Amortization for the period related to deferred leasing costs and acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Amortization Of Intangible Liabilities | -4,021 | [6] | -3,388 | [6] | -7,114 | [6] | -6,873 | [6] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Remaining 2014 | -5,781 | [7] | ' | -5,781 | [7] | ' | ' | |||
2015 | -9,577 | [7] | ' | -9,577 | [7] | ' | ' | |||
2016 | -7,847 | [7] | ' | -7,847 | [7] | ' | ' | |||
2017 | -6,780 | [7] | ' | -6,780 | [7] | ' | ' | |||
2018 | -5,177 | [7] | ' | -5,177 | [7] | ' | ' | |||
Thereafter | -6,023 | [7] | ' | -6,023 | [7] | ' | ' | |||
Acquisition-related Intangible Liabilities, net | -41,185 | [7],[8] | ' | -41,185 | [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 Of Intangible Liabilities | -25 | [9] | -25 | [9] | -50 | [9] | -50 | [9] | ' | |
Estimated annual amortization related to acquisition-related intangibles | ' | ' | ' | ' | ' | |||||
Remaining 2014 | -51 | [10] | ' | -51 | [10] | ' | ' | |||
2015 | -101 | [10] | ' | -101 | [10] | ' | ' | |||
2016 | -101 | [10] | ' | -101 | [10] | ' | ' | |||
2017 | -101 | [10] | ' | -101 | [10] | ' | ' | |||
2018 | -101 | [10] | ' | -101 | [10] | ' | ' | |||
Thereafter | -5,592 | [10] | ' | -5,592 | [10] | ' | ' | |||
Acquisition-related Intangible Liabilities, net | ($6,047) | [10],[8] | ' | ($6,047) | [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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Receivables, net | ' | ' |
Current receivables | $12,720 | $12,866 |
Allowance for uncollectible tenant receivables | -2,132 | -2,123 |
Current receivables, net | 10,588 | 10,743 |
Deferred Rent Receivables, net | ' | ' |
Deferred rent receivables | 136,259 | 129,198 |
Allowance for deferred rent receivables | -1,990 | -2,075 |
Deferred rent receivables, net | $134,269 | $127,123 |
Secured_Debt_Details
Secured Debt (Details) (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured Debt | $553,427 | [1] | $560,434 | [1] |
Kilroy Realty, L.P. [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured Debt | 553,427 | 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 | 131,954 | [1] | 133,117 | [1] |
Kilroy Realty, L.P. [Member] | 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] | 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 | 90,884 | [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 | 67,163 | [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 | 53,683 | [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 | 40,956 | [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 | 34,578 | [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 | 26,971 | [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 | 7,791 | [1] | 8,972 | [1] |
Kilroy Realty, L.P. [Member] | Secured Debt [Member] | Municipal Bonds [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured Debt | $2,447 | [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. |
Exhangeable_Senior_Notes_Detai
Exhangeable Senior Notes (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 29, 2014 | Jul. 28, 2014 | Jul. 28, 2014 | ||
Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Exchangeable Debt [Member] | Exchangeable Debt [Member] | Exchangeable Debt [Member] | Exchangeable Debt [Member] | Exchangeable Debt [Member] | Term Loan Facility [Member] | Term Loan Facility [Member] | Exchangeable Note Two [Member] | Notes exchanged during Q2 2014 [Member] | Exchangeable Note One [Member] | Subsequent Event [Member] | Exchanged July 2014 [Member] | Exchanged August 2014 [Member] | |||||
Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Line of Credit [Member] | Line of Credit [Member] | Exchangeable Debt [Member] | Exchangeable Debt [Member] | Exchangeable Debt [Member] | Exchangeable Debt [Member] | Notes exchanged during Q2 2014 [Member] | Notes exchanged during Q2 2014 [Member] | |||||||
Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Exchangeable Debt [Member] | Exchangeable Debt [Member] | ||||||||||||
D | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of trading days used for calculation of shares of common stock delivered for settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ||
Referenced shares of common stock under capped call | ' | ' | ' | ' | 4,800,796 | [1] | ' | 4,800,796 | [1] | ' | ' | ' | ' | ' | ' | ' | 4,717,498 | ' | ' |
Exchange price including effect of capped calls | ' | ' | ' | ' | $42.81 | ' | $42.81 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Contractual interest payments | ' | ' | ' | ' | 1,636,000 | 1,833,000 | 3,469,000 | 3,666,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Amortization of discount | ' | ' | ' | ' | 1,177,000 | 1,097,000 | 2,333,000 | 2,175,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest Expense attributable to the Exchangeable Notes | ' | ' | ' | ' | 2,813,000 | 2,930,000 | 5,802,000 | 5,841,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Balance and significant terms of the Exchangeable Notes outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term Debt, Gross | ' | ' | ' | ' | 172,500,000 | 172,500,000 | 172,500,000 | 172,500,000 | 172,500,000 | ' | ' | ' | 37,000,000 | ' | ' | 27,700,000 | 9,300,000 | ||
Unamortized discount | ' | ' | ' | ' | -1,796,000 | ' | -1,796,000 | ' | -4,128,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net carrying amount of liability component | 170,704,000 | 168,372,000 | 170,704,000 | 168,372,000 | 170,704,000 | ' | 170,704,000 | ' | 168,372,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Carrying amount of equity component | ' | ' | ' | ' | 19,835,000 | ' | 19,835,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Issuance Date | ' | ' | ' | ' | ' | ' | 16-Nov-09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maturity Date | ' | ' | ' | ' | ' | ' | 15-Nov-14 | ' | ' | 1-Jul-19 | 29-Mar-16 | ' | ' | ' | ' | ' | ' | ||
Stated coupon rate | ' | ' | ' | ' | 4.25% | [2] | ' | 4.25% | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate | ' | ' | ' | ' | 7.13% | [3] | ' | 7.13% | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange rate per $1,000 principal value of the Exchangeable Notes, as adjusted | ' | ' | ' | ' | ' | ' | 27.8307 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Exchange price, as adjusted | ' | ' | ' | ' | ' | ' | $35.93 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of Shares on which aggregate consideration to be delivered upon conversion is determined | ' | ' | ' | ' | ' | ' | 4,800,796 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Minimum percentage of exchange price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | ' | ||
Average trading price of the Companys stock | ' | ' | ' | ' | $60.39 | $54.49 | $57.83 | $52.86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fair Value Of Shares Upon Conversion If Exchangeable Notes Were Converted On Specified Date | ' | ' | ' | ' | 293,595,000 | 259,200,000 | 285,720,000 | 254,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | ' | ' | ' | ' | $121,095,000 | $86,700,000 | $113,220,000 | $81,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.40% | 1.75% | ' | ' | ' | ' | ' | ' | ||
Common stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 321,358 | ' | ||
Shares of Common stock exercised in the capped call option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,298 | ' | ||
Common Stock, Issued, Net of Capped Calls | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 238,060 | ' | ||
[1] | As of the date of this report, the Company’s capped call option position has been reduced to 4,717,498 shares of common stock. | ||||||||||||||||||
[2] | Interest on the 4.25% Exchangeable Notes is payable semi-annually in arrears on May 15th and November 15th of each year. | ||||||||||||||||||
[3] | 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. | ||||||||||||||||||
[4] | 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) (USD $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | |
Unsecured debt | $1,431,301,000 | 1,431,132,000 | |
Exchangeable senior notes, net | 170,704,000 | 168,372,000 | |
Kilroy Realty, L.P. [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Unsecured debt | 1,431,301,000 | 1,431,132,000 | |
Exchangeable senior notes, net | 170,704,000 | 168,372,000 | |
Kilroy Realty, L.P. [Member] | Revolving Credit Facility [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% | 1.45% | |
Debt Instrument, Contingent Additional Borrowings | 300,000,000 | ' | |
Kilroy Realty, L.P. [Member] | 3.800% Unsecured Senior Note [Member] | Senior Notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Stated coupon rate | 3.80% | ' | |
Effective interest rate | 3.80% | [1],[2] | ' |
Debt Instrument, Face Amount | 300,000,000 | 300,000,000 | |
Debt Instrument, Unamortized Discount | -85,000 | -90,000 | |
Unsecured debt | 299,915,000 | 299,910,000 | |
Kilroy Realty, L.P. [Member] | 4.800% Unsecured Senior Notes Due July Fifteen Two Thousand Eighteen [Member] | Senior Notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Stated coupon rate | 4.80% | ' | |
Effective interest rate | 4.83% | [1],[3] | ' |
Debt Instrument, Face Amount | 325,000,000 | 325,000,000 | |
Debt Instrument, Unamortized Discount | -302,000 | -339,000 | |
Unsecured debt | 324,698,000 | 324,661,000 | |
Kilroy Realty, L.P. [Member] | 6.625% Unsecured Senior Notes due June 1 2020 [Member] | Senior Notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Stated coupon rate | 6.63% | ' | |
Effective interest rate | 6.74% | [1],[4] | ' |
Debt Instrument, Face Amount | 250,000,000 | 250,000,000 | |
Debt Instrument, Unamortized Discount | -1,259,000 | -1,367,000 | |
Unsecured debt | 248,741,000 | 248,633,000 | |
Kilroy Realty, L.P. [Member] | 5.000% Unsecured Senior Notes due Nov3 2015 [Member] | Senior Notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Stated coupon rate | 5.00% | ' | |
Effective interest rate | 5.01% | [1],[5] | ' |
Debt Instrument, Face Amount | 325,000,000 | 325,000,000 | |
Debt Instrument, Unamortized Discount | -53,000 | -73,000 | |
Unsecured debt | 324,947,000 | 324,927,000 | |
Kilroy Realty, L.P. [Member] | 6.45% Unsecured Senior Notes due Aug 4 2014 [Member] | Senior Notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Stated coupon rate | 6.45% | ' | |
Effective interest rate | 6.45% | ' | |
Maturity Date | 4-Aug-14 | ' | |
Unsecured debt | 83,000,000 | 83,000,000 | |
Kilroy Realty, L.P. [Member] | Term Loan Facility [Member] | Line of Credit [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Maturity Date | 1-Jul-19 | 29-Mar-16 | |
Unsecured debt | $150,000,000 | 150,000,000 | |
Debt Instrument, Basis Spread on Variable Rate | 1.40% | 1.75% | |
[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] | Interest on the 4.800%Â 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. |
Unsecured_Revolving_Credit_Fac
Unsecured Revolving Credit Facility (Details 3) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2013 | |||
Debt Instrument [Line Items] | ' | ' | ||
Unsecured debt | $1,431,301,000 | $1,431,132,000 | ||
Terms of the Credit Facility | ' | ' | ||
Unsecured line of credit | 90,000,000 | 45,000,000 | ||
Kilroy Realty, L.P. [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unsecured debt | 1,431,301,000 | 1,431,132,000 | ||
Terms of the Credit Facility | ' | ' | ||
Unsecured line of credit | 90,000,000 | 45,000,000 | ||
Kilroy Realty, L.P. [Member] | Revolving Credit Facility [Member] | ' | ' | ||
Terms of the Credit Facility | ' | ' | ||
Unsecured line of credit | 90,000,000 | 45,000,000 | ||
Remaining borrowing capacity | 510,000,000 | 455,000,000 | ||
Total borrowing capacity | 600,000,000 | [1] | 500,000,000 | [1] |
Interest rate | 1.41% | [2] | 1.62% | [3] |
Facility fee - annual rate | 0.25% | [4] | 0.30% | |
Maturity date | 1-Jul-19 | 3-Apr-17 | ||
Debt Instrument, Contingent Additional Borrowings | 300,000,000 | ' | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | 1.45% | ||
Debt Issuance Cost | $6,500,000 | ' | ||
[1] | We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $300.0Â million under an accordion feature under the terms of the unsecured revolving credit facility and term loan facility. | |||
[2] | Our revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.250% as of June 30, 2014. | |||
[3] | Our revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.450% as of December 31, 2013. | |||
[4] | Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of June 30, 2014, $6.5 million of deferred financing costs remains to be amortized through the amended maturity date of our unsecured revolving credit facility. |
Debt_Maturities_Details
Debt Maturities (Details) (Debt [Member], Kilroy Realty, L.P. [Member], USD $) | Jun. 30, 2014 | |
Debt [Member] | Kilroy Realty, L.P. [Member] | ' | |
Stated debt maturities and scheduled amortization payments, excluding debt discounts | ' | |
Remaining 2014 | $260,485,000 | |
2015 | 395,104,000 | |
2016 | 99,431,000 | |
2017 | 71,748,000 | |
2018 | 451,728,000 | |
Thereafter | 958,013,000 | |
Total | 2,236,509,000 | [1] |
Unamortized premium | ($8,900,000) | |
[1] | Includes gross principal balance of outstanding debt before impact of net unamortized premiums totaling approximately $8.9 million. |
Secured_and_Unsecured_Debt_of_2
Secured and Unsecured Debt of the Operating Partnership Capitalized Interest and Loan Fees (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Capitalized Interest and Loan Fees [Line Items] | ' | ' | ' | ' |
Interest Expense | $16,020 | $19,434 | $33,272 | $39,168 |
Kilroy Realty, L.P. [Member] | ' | ' | ' | ' |
Capitalized Interest and Loan Fees [Line Items] | ' | ' | ' | ' |
Gross interest expense | 27,770 | 27,914 | 55,804 | 55,380 |
Capitalized interest | -11,750 | -8,480 | -22,532 | -16,212 |
Interest Expense | $16,020 | $19,434 | $33,272 | $39,168 |
Noncontrolling_Interests_on_th1
Noncontrolling Interests on the Company's Consolidated Financial Statements (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
Noncontrolling Interest [Abstract] | ' | ' | ' |
Percentage of general partnership interest owned by the company in the Operating Partnership | 97.90% | 97.80% | 97.70% |
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% | 2.30% |
Common units outstanding held by common limited partners | 1,804,200 | 1,805,200 | 1,821,503 |
Common stock, par value | $0.01 | ' | ' |
Aggregate value upon redemption of outstanding noncontrolling common units | $112,000,000 | $90,800,000 | ' |
Noncontrolling Interest in Variable Interest Entity | $4,885,000 | $4,885,000 | ' |
Stockholders_Equity_of_the_Com2
Stockholders' Equity of the Company (Details) (USD $) | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 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] | Issuance of Equity under ATM Program [Member] | |||
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | ||||||
Common Stock of the Company [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock, shares | ' | ' | ' | ' | ' | ' | 370,700 | 370,700 |
Average price per common shares sold | ' | ' | ' | ' | ' | ' | $61.01 | $61.01 |
At the Market Stock Offering Program Aggregate Value Of Common Stock | ' | ' | ' | ' | ' | $200,000,000 | ' | ' |
Net proceeds from issuance of common stock (Note 7) | 22,136,000 | 42,789,000 | ' | ' | ' | ' | 22,600,000 | 22,600,000 |
Common stock, shares issued | ' | ' | 82,916,410 | 82,153,944 | ' | 2,553,961 | ' | ' |
At Market Stock Aggregate Gross Sales Price of Common Stock | ' | ' | ' | ' | 127,900,000 | ' | ' | ' |
At the Market Stock Offering Program Remained Available For Issuance | ' | ' | ' | ' | ' | ' | ' | 72,100,000 |
Proceeds from Issuance of Common stock, net | ' | ' | ' | ' | ' | ' | $22,300,000 | $22,300,000 |
Partners_Capital_of_the_Operat2
Partners' Capital of the Operating Partnership (Details) (USD $) | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
General Partners' Capital Account [Abstract] | ' | ' | ' |
Net proceeds from issuance of common stock | $22,136 | $42,789 | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 97.90% | 97.70% | 97.80% |
Common units held by limited partners | 1,804,200 | 1,821,503 | 1,805,200 |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 2.10% | 2.30% | 2.20% |
Kilroy Realty, L.P. [Member] | Capital Units [Member] | ' | ' | ' |
General Partners' Capital Account [Abstract] | ' | ' | ' |
General Partners' Capital Account, Units Outstanding | 82,916,410 | 75,710,907 | 82,153,944 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jan. 29, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | ||
Market Measure-Based Restricted Stock Units (RSUs) [Member] | Market Measure-Based Restricted Stock Units (RSUs) [Member] | Time-Based Restricted Stock Units (RSUs) [Member] | Employee Stock Option [Member] | Kilroy Realty 2006 Incentive Award Plan [Member] | Lease Termination | Lease Termination | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Shareholder Meeting Date May 22, 2014 [Domain] | ||||||||
Employee Stock Option [Member] | ||||||||||||||||||
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 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42.61 | ' | ' | ' | ' | ' | ' | ' | |
Shares Paid for Tax Withholding for Share Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,763 | 33,534 | 16,908 | ' | |
Amortization of Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 | $900,000 | [1] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 730,127 | ' | ' | ' | ' | ' | ' | |
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 | $65.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | ' | ' | ' | ' | ' | ' | ' | 24.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | ' | ' | ' | ' | ' | ' | ' | 0.61% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | 236,604 | ' | ' | ' | ' | 119,098 | 117,506 | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | ' | ' | ' | ' | ' | ' | '2 years 7 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share Price | ' | ' | ' | ' | $51.64 | $60.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 325,000 | 473 | ' | ' | |
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Grants In Period, Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | 7,700,000 | 7,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Capitalized | 500,000 | 200,000 | 900,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation, Unrecognized costs | 35,900,000 | ' | 35,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation, Unrecognized costs, weighted-average vesting period | ' | ' | '3 years 1 month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Allocated Share-based Compensation Expense | $3,500,000 | $2,300,000 | $6,400,000 | $4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[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. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details 1) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Other Commitment | $635.80 |
Fair_Value_Measurements_and_Di2
Fair Value Measurements and Disclosures (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||
Fair value adjustment of marketable securities and deferred compensation plan liability | ' | ' | ' | ' | ' | |||
Net gain on marketable securities | $392 | ($30) | $546 | $326 | ' | |||
Trading Securities | 11,747 | ' | 11,747 | ' | 10,008 | |||
Fair Value (Level 1) [Member] | ' | ' | ' | ' | ' | |||
Assets and Liabilities Reported at Fair Value | ' | ' | ' | ' | ' | |||
Marketable securities | $11,747 | [1],[2] | ' | $11,747 | [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 $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
Liabilities | ' | ' | ||
Secured Debt | $553,427,000 | [1] | $560,434,000 | [1] |
Exchangeable senior notes, net | 170,704,000 | 168,372,000 | ||
Unsecured debt | 1,431,301,000 | 1,431,132,000 | ||
Unsecured line of credit | 90,000,000 | 45,000,000 | ||
Carrying Value | ' | ' | ||
Liabilities | ' | ' | ||
Secured Debt | 553,427,000 | 560,434,000 | ||
Exchangeable senior notes, net | 170,704,000 | 168,372,000 | ||
Unsecured debt | 1,431,301,000 | 1,431,132,000 | ||
Unsecured line of credit | 90,000,000 | 45,000,000 | ||
Carrying Value | Fair Value (Level 2) [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 557,700,000 | 557,700,000 | ||
Carrying Value | Unsecured Debt [Member] | Fair Value (Level 1) [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 873,600,000 | 873,500,000 | ||
Fair Value | ' | ' | ||
Liabilities | ' | ' | ||
Secured Debt | 567,933,000 | [2] | 568,760,000 | [2] |
Exchangeable senior notes, net | 174,424,000 | [2] | 178,190,000 | [2] |
Unsecured debt | 1,523,861,000 | [3] | 1,523,052,000 | [3] |
Unsecured line of credit | 90,506,000 | [2] | 45,012,000 | [2] |
Fair Value | Fair Value (Level 2) [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 587,400,000 | 593,700,000 | ||
Fair Value | Unsecured Debt [Member] | Fair Value (Level 1) [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | $936,500,000 | $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 $873.6 million and $936.5 million, respectively, as of June 30, 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 $587.4 million, respectively, as of June 30, 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 | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | ||
Other Significant Noncash Transactions [Line Items] | ' | ' | |
Net Rentable Area | 79,000 | 79,000 | |
Lease termination fee, total contract amount | $5,700,000 | $5,700,000 | |
Lease Termination | ' | ' | |
Other Significant Noncash Transactions [Line Items] | ' | ' | |
Lease Termination Fee, amount recognized in the quarter | 1,900,000 | 3,700,000 | |
Amortization of Intangible Assets | $400,000 | $900,000 | [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 | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jul. 08, 2014 | ||
sqft | sqft | 10850 Via Frontera San Diego CA [Member] | San Diego Properties, San Diego, CA [Member] | 9785&9791 Towne Centre Drive, San Diego CA [Member] | 2014 Dispositions [Member] | Restricted cash [Member] | Restricted cash [Member] | Released July 2014 [Member] | ||||
building | building | sqft | Restricted cash [Member] | |||||||||
sqft | sqft | building | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Dispositions Sales Price | ' | ' | ' | ' | $33,100,000 | ' | ' | ' | ' | ' | ' | |
Gain on sale of land (Note 13) | 3,490,000 | 0 | 3,490,000 | 0 | ' | ' | ' | ' | ' | ' | ' | |
Proceeds from Sale of Real Estate Held-for-investment | ' | ' | 353,581,000 | 14,409,000 | ' | ' | ' | ' | 75,900,000 | 32,200,000 | 15,300,000 | |
Number of buildings | ' | ' | ' | ' | ' | 12 | [1] | 2 | 14 | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Rental income | 0 | 5,957,000 | 458,000 | 11,730,000 | ' | ' | ' | ' | ' | ' | ' | |
Tenant reimbursements | 0 | 682,000 | 66,000 | 1,439,000 | ' | ' | ' | ' | ' | ' | ' | |
Other property income | 0 | 4,000 | 9,000 | 7,000 | ' | ' | ' | ' | ' | ' | ' | |
Total revenues | 0 | 6,643,000 | 533,000 | 13,176,000 | ' | ' | ' | ' | ' | ' | ' | |
Property expenses | 0 | 932,000 | 87,000 | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | |
Real estate taxes | 0 | 691,000 | 69,000 | 1,364,000 | ' | ' | ' | ' | ' | ' | ' | |
Depreciation and amortization | 0 | 2,777,000 | 0 | 5,467,000 | ' | ' | ' | ' | ' | ' | ' | |
Total expenses | 0 | 4,400,000 | 156,000 | 8,731,000 | ' | ' | ' | ' | ' | ' | ' | |
Income from discontinued operations | 0 | 2,243,000 | 377,000 | 4,445,000 | ' | ' | ' | ' | ' | ' | ' | |
Gains on dispositions of discontinued operations | 14,689,000 | 423,000 | 104,804,000 | 423,000 | ' | ' | ' | ' | ' | ' | ' | |
Total income from discontinued operations | $14,689,000 | $2,666,000 | $105,181,000 | $4,868,000 | ' | ' | ' | ' | ' | ' | ' | |
Net Rentable Area | 79,000 | ' | 79,000 | ' | ' | 1,049,035 | [1] | 126,000 | 1,175,035 | ' | ' | ' |
[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. These properties were held for sale as of December 31, 2013. |
Net_Income_Available_to_Common4
Net Income Available to Common Stockholders Per Share of the Company (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Numerator: | ' | ' | ' | ' | ||||
Income from continuing operations | $16,454 | $7,437 | $27,894 | $7,623 | ||||
Income from continuing operations attributable to noncontrolling common units of the Operating Partnership | -295 | -96 | -467 | -24 | ||||
Preferred distributions | -3,312 | -3,313 | -6,625 | -6,626 | ||||
Allocation to participating securities | -426 | -424 | -853 | [1] | -847 | [1] | ||
Numerator for basic and diluted income from continuing operations available to common stockholders | 12,421 | 3,604 | 19,949 | 126 | ||||
Income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 | ||||
Income from discontinued operations attributable to noncontrolling common units of the Operating Partnership | -308 | -61 | -2,223 | -111 | ||||
Numerator for basic and diluted net income available to common unitholders | 26,802 | 6,209 | 122,907 | 4,883 | ||||
Denominator: | ' | ' | ' | ' | ||||
Weighted average common shares outstanding – basic (Note 14) | 82,277,845 | 75,486,380 | 82,201,615 | 75,233,350 | ||||
Effect of dilutive securities | 2,324,487 | 1,967,309 | 2,173,640 | 1,825,594 | ||||
Weighted average common shares outstanding-diluted | 84,602,332 | 77,453,689 | 84,375,255 | 77,058,944 | ||||
Basic earnings per share: | ' | ' | ' | ' | ||||
Income from continuing operations available to common stockholders per common share – basic (Note 14) | $0.15 | $0.05 | $0.24 | $0 | ||||
Income from discontinued operations per common share | $0.18 | $0.03 | $1.25 | $0.06 | ||||
Net income available to common stockholders per share-basic | $0.33 | $0.08 | $1.49 | $0.06 | ||||
Diluted earnings per share: | ' | ' | ' | ' | ||||
Income from continuing operations available to common stockholders per common share – diluted (Note 14) | $0.15 | $0.05 | $0.24 | $0 | ||||
Income from discontinued operations per common share | $0.17 | $0.03 | $1.22 | $0.06 | ||||
Net income available to common stockholders per share-diluted | $0.32 | $0.08 | $1.46 | $0.06 | ||||
Kilroy Realty, L.P. [Member] | ' | ' | ' | ' | ||||
Numerator: | ' | ' | ' | ' | ||||
Income from continuing operations | 16,454 | 7,437 | 27,894 | 7,623 | ||||
Preferred distributions | -3,312 | -3,313 | -6,625 | -6,626 | ||||
Allocation to participating securities | -426 | [1] | -424 | [1] | -853 | -847 | ||
Numerator for basic and diluted income from continuing operations available to common stockholders | 12,639 | 3,638 | 20,274 | 19 | ||||
Income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 | ||||
Numerator for basic and diluted net income available to common unitholders | $27,328 | $6,304 | $125,455 | $4,887 | ||||
Denominator: | ' | ' | ' | ' | ||||
Weighted average common shares outstanding – basic (Note 14) | 84,082,045 | 77,310,685 | 84,005,942 | 77,058,748 | ||||
Effect of dilutive securities | 2,324,487 | 1,967,309 | 2,173,640 | 1,825,594 | ||||
Weighted average common shares outstanding-diluted | 86,406,532 | 79,277,994 | 86,179,582 | 78,884,342 | ||||
Basic earnings per share: | ' | ' | ' | ' | ||||
Income from continuing operations available to common stockholders per common share – basic (Note 14) | $0.15 | $0.05 | $0.24 | $0 | ||||
Income from discontinued operations per common share | $0.18 | $0.03 | $1.25 | $0.06 | ||||
Net income available to common stockholders per share-basic | $0.33 | $0.08 | $1.49 | $0.06 | ||||
Diluted earnings per share: | ' | ' | ' | ' | ||||
Income from continuing operations available to common stockholders per common share – diluted (Note 14) | $0.15 | $0.05 | $0.24 | $0 | ||||
Income from discontinued operations per common share | $0.17 | $0.03 | $1.22 | $0.06 | ||||
Net income available to common stockholders per share-diluted | $0.32 | $0.08 | $1.46 | $0.06 | ||||
[1] | Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. |
Net_Income_Available_to_Common5
Net Income Available to Common Unitholders Per Unit of the Operating Partnership (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Numerator: | ' | ' | ' | ' | ||||
Income from continuing operations | $16,454 | $7,437 | $27,894 | $7,623 | ||||
Preferred distributions | -3,312 | -3,313 | -6,625 | -6,626 | ||||
Allocation to participating securities | -426 | -424 | -853 | [1] | -847 | [1] | ||
Numerator for basic and diluted income from continuing operations available to common unitholders | 12,421 | 3,604 | 19,949 | 126 | ||||
Income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 | ||||
Numerator for basic and diluted net income available to common unitholders | 26,802 | 6,209 | 122,907 | 4,883 | ||||
Denominator: | ' | ' | ' | ' | ||||
Weighted average common units outstanding - basic (Note 15) | 82,277,845 | 75,486,380 | 82,201,615 | 75,233,350 | ||||
Effect of dilutive securities | 2,324,487 | 1,967,309 | 2,173,640 | 1,825,594 | ||||
Weighted average common units outstanding - diluted (Note 15) | 84,602,332 | 77,453,689 | 84,375,255 | 77,058,944 | ||||
Basic earnings per unit: | ' | ' | ' | ' | ||||
Income from continuing operations available to common unitholders per common unit - basic (Note 15) | $0.15 | $0.05 | $0.24 | $0 | ||||
Income from discontinued operations per common unit | $0.18 | $0.03 | $1.25 | $0.06 | ||||
Net income available to common unitholders per unit-basic (Note 15) | $0.33 | $0.08 | $1.49 | $0.06 | ||||
Diluted earnings per unit: | ' | ' | ' | ' | ||||
Income from continuing operations available to common unitholders per common unit - diluted (Note 15) | $0.15 | $0.05 | $0.24 | $0 | ||||
Income from discontinued operations per common unit | $0.17 | $0.03 | $1.22 | $0.06 | ||||
Net income available to common unitholders per unit-diluted (Note 15) | $0.32 | $0.08 | $1.46 | $0.06 | ||||
Kilroy Realty, L.P. [Member] | ' | ' | ' | ' | ||||
Numerator: | ' | ' | ' | ' | ||||
Income from continuing operations | 16,454 | 7,437 | 27,894 | 7,623 | ||||
Income from continuing operations attributable to noncontrolling interests in consolidated subsidiaries | -77 | -62 | -142 | -131 | ||||
Preferred distributions | -3,312 | -3,313 | -6,625 | -6,626 | ||||
Allocation to participating securities | -426 | [1] | -424 | [1] | -853 | -847 | ||
Numerator for basic and diluted income from continuing operations available to common unitholders | 12,639 | 3,638 | 20,274 | 19 | ||||
Income from discontinued operations | 14,689 | 2,666 | 105,181 | 4,868 | ||||
Numerator for basic and diluted net income available to common unitholders | $27,328 | $6,304 | $125,455 | $4,887 | ||||
Denominator: | ' | ' | ' | ' | ||||
Weighted average common units outstanding - basic (Note 15) | 84,082,045 | 77,310,685 | 84,005,942 | 77,058,748 | ||||
Effect of dilutive securities | 2,324,487 | 1,967,309 | 2,173,640 | 1,825,594 | ||||
Weighted average common units outstanding - diluted (Note 15) | 86,406,532 | 79,277,994 | 86,179,582 | 78,884,342 | ||||
Basic earnings per unit: | ' | ' | ' | ' | ||||
Income from continuing operations available to common unitholders per common unit - basic (Note 15) | $0.15 | $0.05 | $0.24 | $0 | ||||
Income from discontinued operations per common unit | $0.18 | $0.03 | $1.25 | $0.06 | ||||
Net income available to common unitholders per unit-basic (Note 15) | $0.33 | $0.08 | $1.49 | $0.06 | ||||
Diluted earnings per unit: | ' | ' | ' | ' | ||||
Income from continuing operations available to common unitholders per common unit - diluted (Note 15) | $0.15 | $0.05 | $0.24 | $0 | ||||
Income from discontinued operations per common unit | $0.17 | $0.03 | $1.22 | $0.06 | ||||
Net income available to common unitholders per unit-diluted (Note 15) | $0.32 | $0.08 | $1.46 | $0.06 | ||||
[1] | Participating securities include nonvested shares, certain time-based RSUs and vested market measure-based RSUs. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jul. 16, 2014 | Jul. 21, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jul. 21, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | |||
Subsequent Event [Member] | Subsequent Event [Member] | 10850 Via Frontera San Diego CA [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | SFFGA [Member] | Exchangeable Debt [Member] | Exchangeable Debt [Member] | Exchangeable Debt [Member] | ||||||
Subsequent Event [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | Kilroy Realty, L.P. [Member] | ||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Dispositions Sales Price | ' | ' | ' | ' | ' | $33,100,000 | ' | ' | ' | ' | ' | ' | ' | ||
Aggregate dividends, distributions, and dividend equivalents paid to common stockholders and common unitholders | 58,864,000 | 53,998,000 | ' | 30,100,000 | ' | ' | 58,864,000 | 53,998,000 | ' | ' | ' | ' | ' | ||
Long-term Debt, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 172,500,000 | 172,500,000 | 172,500,000 | ||
purchase price, land acquisition | ' | ' | ' | ' | 27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
merger consideration | ' | ' | ' | ' | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Secured Debt | $553,427,000 | [1] | ' | $560,434,000 | [1] | ' | ' | ' | $553,427,000 | ' | $560,434,000 | $4,600,000 | ' | ' | ' |
[1] | Amounts reported include the amounts of unamortized debt premiums and discounts for the periods presented. |