Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 20, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-12675 | |
Entity Registrant Name | KILROY REALTY CORPORATION | |
Entity Incorporation, State Code | MD | |
Entity Tax Identification Number | 95-4598246 | |
Entity Address, Address Line One | 12200 W. Olympic Boulevard | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90064 | |
City Area Code | 310 | |
Local Phone Number | 481-8400 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Security Exchange Name | NYSE | |
Trading Symbol | KRC | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 117,239,558 | |
Entity Central Index Key | 0001025996 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Kilroy Realty L.P. | ||
Entity Information [Line Items] | ||
Entity File Number | 000-54005 | |
Entity Registrant Name | KILROY REALTY, L.P. | |
Entity Incorporation, State Code | DE | |
Entity Tax Identification Number | 95-4612685 | |
Title of 12(g) Security | Common Units Representing Limited Partnership Interests | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001493976 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
REAL ESTATE ASSETS: | ||
Land and improvements | $ 1,743,170 | $ 1,738,242 |
Buildings and improvements | 8,431,499 | 8,302,081 |
Undeveloped land and construction in progress | 1,950,424 | 1,691,860 |
Total real estate assets held for investment | 12,125,093 | 11,732,183 |
Accumulated depreciation and amortization | (2,443,659) | (2,218,710) |
Total real estate assets held for investment, net | 9,681,434 | 9,513,473 |
CASH AND CASH EQUIVALENTS | 618,794 | 347,379 |
MARKETABLE SECURITIES (Notes 2 and 9) | 278,789 | 23,547 |
CURRENT RECEIVABLES, NET | 11,383 | 20,583 |
DEFERRED RENT RECEIVABLES, NET | 466,073 | 452,200 |
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 228,742 | 250,846 |
RIGHT OF USE GROUND LEASE ASSETS | 125,765 | 126,530 |
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 3) | 60,141 | 62,429 |
TOTAL ASSETS | 11,471,121 | 10,796,987 |
LIABILITIES: | ||
Secured debt, net (Notes 4 and 9) | 604,480 | 242,938 |
Unsecured debt, net (Notes 4 and 9) | 4,330,326 | 4,020,058 |
Accounts payable, accrued expenses and other liabilities | 426,662 | 392,360 |
Ground lease liabilities | 124,517 | 124,994 |
Accrued dividends and distributions (Note 14) | 64,423 | 64,285 |
Deferred revenue and acquisition-related intangible liabilities, net | 178,542 | 195,959 |
Rents received in advance and tenant security deposits | 74,646 | 81,432 |
Total liabilities | 5,803,596 | 5,122,026 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
Stockholders’ Equity: | ||
Common stock, $.01 par value, 280,000,000 shares authorized, 117,239,558 and 116,878,031 shares issued and outstanding | 1,173 | 1,169 |
Additional paid-in capital | 5,195,106 | 5,170,760 |
Retained earnings | 237,665 | 265,118 |
Total stockholders’ equity | 5,433,944 | 5,437,047 |
Noncontrolling Interests (Notes 1 and 5): | ||
Common units of the Operating Partnership | 53,328 | 53,524 |
Noncontrolling interests in consolidated property partnerships | 180,253 | 184,390 |
Total noncontrolling interests | 233,581 | 237,914 |
Total equity | 5,667,525 | 5,674,961 |
TOTAL LIABILITIES AND EQUITY (CAPITAL) | $ 11,471,121 | $ 10,796,987 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 280,000,000 | 280,000,000 |
Common stock, issued (in shares) | 117,239,558 | 116,878,031 |
Common stock, outstanding (in shares) | 117,239,558 | 116,878,031 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue, Product and Service [Extensible List] | Service [Member] | Service [Member] | ||
REVENUES | ||||
Rental income (Note 7) | $ 280,681 | $ 272,546 | $ 852,094 | $ 804,330 |
Other property income | 2,913 | 3,412 | 8,584 | 8,313 |
Total revenues | 283,594 | 275,958 | 860,678 | 812,643 |
EXPENSES | ||||
Property expenses | 59,445 | 52,075 | 168,233 | 147,421 |
Real estate taxes | 28,363 | 27,415 | 84,868 | 78,718 |
Ground leases | 2,390 | 1,771 | 7,172 | 5,473 |
General and administrative expenses (Note 6) | 24,761 | 23,524 | 71,356 | 68,425 |
Leasing costs | 1,852 | 1,015 | 4,550 | 3,475 |
Depreciation and amortization | 85,224 | 81,140 | 269,262 | 266,215 |
Total expenses | 202,035 | 186,940 | 605,441 | 569,727 |
OTHER INCOME (EXPENSES) | ||||
Interest and other income, net | 7,015 | 295 | 11,896 | 501 |
Interest expense (Note 4) | (29,837) | (19,982) | (81,891) | (60,728) |
Gain on sale of depreciable operating property | 0 | 17,329 | 0 | 17,329 |
Total other expenses | (22,822) | (2,358) | (69,995) | (42,898) |
NET INCOME | 58,737 | 86,660 | 185,242 | 200,018 |
Net income attributable to noncontrolling common units of the Operating Partnership | (515) | (664) | (1,612) | (1,695) |
Net income attributable to noncontrolling interests in consolidated property partnerships | (5,460) | (6,239) | (18,673) | (18,333) |
Total income attributable to noncontrolling interests | (5,975) | (6,903) | (20,285) | (20,028) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (UNITHOLDERS) | $ 52,762 | $ 79,757 | $ 164,957 | $ 179,990 |
Net income available to common stockholders per share – basic (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Net income available to common stockholders per share – diluted (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Weighted average common shares outstanding – basic (in shares) | 117,184,609 | 116,872,953 | 117,133,420 | 116,782,621 |
Weighted average common shares outstanding – diluted (in shares) | 117,495,246 | 117,242,411 | 117,411,395 | 117,163,149 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Stock- holders’ Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2021 | 116,464,169 | |||||
Beginning balance at Dec. 31, 2021 | $ 5,689,870 | $ 5,440,060 | $ 1,165 | $ 5,155,232 | $ 283,663 | $ 249,810 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 59,383 | 53,128 | 53,128 | 6,255 | ||
Issuance of share-based compensation awards | 1,942 | 1,942 | 1,942 | |||
Non-cash amortization of share-based compensation | 6,598 | 6,598 | 6,598 | |||
Settlement of restricted stock units for shares of common stock (in shares) | 459,050 | |||||
Settlement of restricted stock units for shares of common stock | 0 | 0 | $ 5 | (5) | ||
Repurchase of common stock and restricted stock units (in shares) | (207,139) | |||||
Repurchase of common stock and restricted stock units | (13,994) | (13,994) | $ (3) | (13,991) | ||
Distributions to noncontrolling interests in consolidated property partnerships | (14,842) | 0 | (14,842) | |||
Adjustment for noncontrolling interest | 0 | 192 | 192 | (192) | ||
Dividends declared per common share and common unit | (63,196) | (62,598) | (62,598) | (598) | ||
Ending balance (in shares) at Mar. 31, 2022 | 116,716,080 | |||||
Ending balance at Mar. 31, 2022 | 5,665,761 | 5,425,328 | $ 1,167 | 5,149,968 | 274,193 | 240,433 |
Beginning balance (in shares) at Dec. 31, 2021 | 116,464,169 | |||||
Beginning balance at Dec. 31, 2021 | 5,689,870 | 5,440,060 | $ 1,165 | 5,155,232 | 283,663 | 249,810 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 200,018 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 116,877,453 | |||||
Ending balance at Sep. 30, 2022 | 5,679,777 | 5,439,395 | $ 1,169 | 5,162,088 | 276,138 | 240,382 |
Beginning balance (in shares) at Mar. 31, 2022 | 116,716,080 | |||||
Beginning balance at Mar. 31, 2022 | 5,665,761 | 5,425,328 | $ 1,167 | 5,149,968 | 274,193 | 240,433 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 53,975 | 47,105 | 47,105 | 6,870 | ||
Issuance of share-based compensation awards | 635 | 635 | 635 | |||
Non-cash amortization of share-based compensation | 9,665 | 9,665 | 9,665 | |||
Settlement of restricted stock units for shares of common stock (in shares) | 273,382 | |||||
Settlement of restricted stock units for shares of common stock | 0 | 0 | $ 2 | (2) | ||
Repurchase of common stock and restricted stock units (in shares) | (118,492) | |||||
Repurchase of common stock and restricted stock units | (8,660) | (8,660) | (8,660) | |||
Distributions to noncontrolling interests in consolidated property partnerships | (6,948) | 0 | (6,948) | |||
Adjustment for noncontrolling interest | 0 | 99 | 99 | (99) | ||
Dividends declared per common share and common unit | (61,877) | (61,278) | (61,278) | (599) | ||
Ending balance (in shares) at Jun. 30, 2022 | 116,870,970 | |||||
Ending balance at Jun. 30, 2022 | 5,652,551 | 5,412,894 | $ 1,169 | 5,151,705 | 260,020 | 239,657 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 86,660 | 79,757 | 79,757 | 6,903 | ||
Issuance of share-based compensation awards | 505 | 505 | 505 | |||
Non-cash amortization of share-based compensation | 10,287 | 10,287 | 10,287 | |||
Settlement of restricted stock units for shares of common stock (in shares) | 11,930 | |||||
Settlement of restricted stock units for shares of common stock | 0 | 0 | ||||
Repurchase of common stock and restricted stock units (in shares) | (5,447) | |||||
Repurchase of common stock and restricted stock units | (267) | (267) | (267) | |||
Distributions to noncontrolling interests in consolidated property partnerships | (5,700) | 0 | (5,700) | |||
Adjustment for noncontrolling interest | 0 | (142) | (142) | 142 | ||
Dividends declared per common share and common unit | (64,259) | (63,639) | (63,639) | (620) | ||
Ending balance (in shares) at Sep. 30, 2022 | 116,877,453 | |||||
Ending balance at Sep. 30, 2022 | $ 5,679,777 | 5,439,395 | $ 1,169 | 5,162,088 | 276,138 | 240,382 |
Beginning balance (in shares) at Dec. 31, 2022 | 116,878,031 | 116,878,031 | ||||
Beginning balance at Dec. 31, 2022 | $ 5,674,961 | 5,437,047 | $ 1,169 | 5,170,760 | 265,118 | 237,914 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 65,230 | 56,608 | 56,608 | 8,622 | ||
Issuance of share-based compensation awards | 1,365 | 1,365 | 1,365 | |||
Non-cash amortization of share-based compensation | 11,566 | 11,566 | 11,566 | |||
Settlement of restricted stock units for shares of common stock (in shares) | 445,973 | |||||
Settlement of restricted stock units for shares of common stock | 0 | 0 | $ 4 | (4) | ||
Repurchase of common stock and restricted stock units (in shares) | (203,042) | |||||
Repurchase of common stock and restricted stock units | (8,363) | (8,363) | $ (2) | (8,361) | ||
Distributions to noncontrolling interests in consolidated property partnerships | (7,068) | 0 | (7,068) | |||
Adjustment for noncontrolling interest | 0 | 76 | 76 | (76) | ||
Dividends declared per common share and common unit | (65,269) | (64,647) | (64,647) | (622) | ||
Ending balance (in shares) at Mar. 31, 2023 | 117,120,962 | |||||
Ending balance at Mar. 31, 2023 | $ 5,672,422 | 5,433,652 | $ 1,171 | 5,175,402 | 257,079 | 238,770 |
Beginning balance (in shares) at Dec. 31, 2022 | 116,878,031 | 116,878,031 | ||||
Beginning balance at Dec. 31, 2022 | $ 5,674,961 | 5,437,047 | $ 1,169 | 5,170,760 | 265,118 | 237,914 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 185,242 | |||||
Ending balance (in shares) at Sep. 30, 2023 | 117,239,558 | 117,239,558 | ||||
Ending balance at Sep. 30, 2023 | $ 5,667,525 | 5,433,944 | $ 1,173 | 5,195,106 | 237,665 | 233,581 |
Beginning balance (in shares) at Mar. 31, 2023 | 117,120,962 | |||||
Beginning balance at Mar. 31, 2023 | 5,672,422 | 5,433,652 | $ 1,171 | 5,175,402 | 257,079 | 238,770 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 61,275 | 55,587 | 55,587 | 5,688 | ||
Issuance of share-based compensation awards | 726 | 726 | 726 | |||
Non-cash amortization of share-based compensation | 9,496 | 9,496 | 9,496 | |||
Settlement of restricted stock units for shares of common stock (in shares) | 103,135 | |||||
Settlement of restricted stock units for shares of common stock | 0 | 0 | $ 1 | (1) | ||
Repurchase of common stock and restricted stock units (in shares) | (46,189) | |||||
Repurchase of common stock and restricted stock units | (1,340) | (1,340) | (1,340) | |||
Distributions to noncontrolling interests in consolidated property partnerships | (10,393) | 0 | (10,393) | |||
Adjustment for noncontrolling interest | 0 | (56) | (56) | 56 | ||
Dividends declared per common share and common unit | (64,592) | (63,971) | (63,971) | (621) | ||
Ending balance (in shares) at Jun. 30, 2023 | 117,177,908 | |||||
Ending balance at Jun. 30, 2023 | 5,667,594 | 5,434,094 | $ 1,172 | 5,184,227 | 248,695 | 233,500 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 58,737 | 52,762 | 52,762 | 5,975 | ||
Issuance of share-based compensation awards | 538 | 538 | 538 | |||
Non-cash amortization of share-based compensation | 12,310 | 12,310 | 12,310 | |||
Settlement of restricted stock units for shares of common stock (in shares) | 115,492 | |||||
Settlement of restricted stock units for shares of common stock | 0 | 0 | $ 2 | (2) | ||
Repurchase of common stock and restricted stock units (in shares) | (53,842) | |||||
Repurchase of common stock and restricted stock units | (1,892) | (1,892) | $ (1) | (1,891) | ||
Distributions to noncontrolling interests in consolidated property partnerships | (5,349) | 0 | (5,349) | |||
Adjustment for noncontrolling interest | 0 | (76) | (76) | 76 | ||
Dividends declared per common share and common unit | $ (64,413) | (63,792) | (63,792) | (621) | ||
Ending balance (in shares) at Sep. 30, 2023 | 117,239,558 | 117,239,558 | ||||
Ending balance at Sep. 30, 2023 | $ 5,667,525 | $ 5,433,944 | $ 1,173 | $ 5,195,106 | $ 237,665 | $ 233,581 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared per common share and common unit (in dollars per share) | $ 0.54 | $ 0.54 | $ 0.54 | $ 0.54 | $ 0.52 | $ 0.52 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 185,242 | $ 200,018 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of real estate assets and leasing costs | 263,662 | 261,129 |
Depreciation of non-real estate furniture, fixtures and equipment | 5,600 | 5,086 |
Revenue reversals for doubtful accounts, net (Note 7) | 3,931 | 191 |
Non-cash amortization of share-based compensation awards | 28,360 | 21,635 |
Non-cash amortization of deferred financing costs and debt discounts | 3,921 | 2,442 |
Non-cash amortization of net below market rents | (5,675) | (8,171) |
Gain on sale of depreciable operating property | 0 | (17,329) |
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (14,643) | (14,221) |
Straight-line rents | (16,533) | (38,239) |
Amortization of right of use ground lease assets | 765 | 594 |
Net change in other operating assets | 2,042 | (5,323) |
Net change in other operating liabilities | 35,694 | 76,418 |
Net cash provided by operating activities | 492,366 | 484,230 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of certificates of deposit (Note 2) | (252,830) | 0 |
Expenditures for development and redevelopment properties and undeveloped land | (338,794) | (334,711) |
Expenditures for operating properties and other capital assets | (68,853) | (65,526) |
Expenditures for acquisitions of development properties and undeveloped land | 0 | (40,033) |
Net proceeds received from disposition | 0 | 33,416 |
Net cash used in investing activities | (660,477) | (406,854) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock and restricted stock units | (11,595) | (22,921) |
Distributions to noncontrolling interests in consolidated property partnerships | (22,818) | (27,497) |
Dividends and distributions paid to common stockholders and common unitholders | (191,499) | (183,822) |
Financing costs | (10,962) | (3,083) |
Principal payments and repayments of secured debt | (4,310) | (4,146) |
Proceeds from issuance of secured debt (Note 4) | 375,000 | 0 |
Borrowings on unsecured debt (Note 4) | 320,000 | 0 |
Repurchases of unsecured debt (Note 4) | (14,290) | 0 |
Net cash provided by (used in) financing activities | 439,526 | (241,469) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 271,415 | (164,093) |
Cash and cash equivalents and restricted cash, beginning of period | 347,379 | 427,083 |
Cash and cash equivalents and restricted cash, end of period | $ 618,794 | $ 262,990 |
CONSOLIDATED BALANCE SHEETS (KI
CONSOLIDATED BALANCE SHEETS (KILROY REALTY, L.P.) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
REAL ESTATE ASSETS: | ||
Land and improvements | $ 1,743,170 | $ 1,738,242 |
Buildings and improvements | 8,431,499 | 8,302,081 |
Undeveloped land and construction in progress | 1,950,424 | 1,691,860 |
Total real estate assets held for investment | 12,125,093 | 11,732,183 |
Accumulated depreciation and amortization | (2,443,659) | (2,218,710) |
Total real estate assets held for investment, net | 9,681,434 | 9,513,473 |
CASH AND CASH EQUIVALENTS | 618,794 | 347,379 |
MARKETABLE SECURITIES (Notes 2 and 9) | 278,789 | 23,547 |
CURRENT RECEIVABLES, NET | 11,383 | 20,583 |
DEFERRED RENT RECEIVABLES, NET | 466,073 | 452,200 |
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 228,742 | 250,846 |
RIGHT OF USE GROUND LEASE ASSETS | 125,765 | 126,530 |
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 3) | 60,141 | 62,429 |
TOTAL ASSETS | 11,471,121 | 10,796,987 |
LIABILITIES: | ||
Secured debt, net (Notes 4 and 9) | 604,480 | 242,938 |
Unsecured debt, net (Notes 4 and 9) | 4,330,326 | 4,020,058 |
Accounts payable, accrued expenses and other liabilities | 426,662 | 392,360 |
Ground lease liabilities | 124,517 | 124,994 |
Accrued dividends and distributions (Note 14) | 64,423 | 64,285 |
Deferred revenue and acquisition-related intangible liabilities, net | 178,542 | 195,959 |
Rents received in advance and tenant security deposits | 74,646 | 81,432 |
Total liabilities | 5,803,596 | 5,122,026 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
CAPITAL: | ||
TOTAL LIABILITIES AND EQUITY (CAPITAL) | 11,471,121 | 10,796,987 |
Kilroy Realty L.P. | ||
REAL ESTATE ASSETS: | ||
Land and improvements | 1,743,170 | 1,738,242 |
Buildings and improvements | 8,431,499 | 8,302,081 |
Undeveloped land and construction in progress | 1,950,424 | 1,691,860 |
Total real estate assets held for investment | 12,125,093 | 11,732,183 |
Accumulated depreciation and amortization | (2,443,659) | (2,218,710) |
Total real estate assets held for investment, net | 9,681,434 | 9,513,473 |
CASH AND CASH EQUIVALENTS | 618,794 | 347,379 |
MARKETABLE SECURITIES (Notes 2 and 9) | 278,789 | 23,547 |
CURRENT RECEIVABLES, NET | 11,383 | 20,583 |
DEFERRED RENT RECEIVABLES, NET | 466,073 | 452,200 |
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET | 228,742 | 250,846 |
RIGHT OF USE GROUND LEASE ASSETS | 125,765 | 126,530 |
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 3) | 60,141 | 62,429 |
TOTAL ASSETS | 11,471,121 | 10,796,987 |
LIABILITIES: | ||
Secured debt, net (Notes 4 and 9) | 604,480 | 242,938 |
Unsecured debt, net (Notes 4 and 9) | 4,330,326 | 4,020,058 |
Accounts payable, accrued expenses and other liabilities | 426,662 | 392,360 |
Ground lease liabilities | 124,517 | 124,994 |
Accrued dividends and distributions (Note 14) | 64,423 | 64,285 |
Deferred revenue and acquisition-related intangible liabilities, net | 178,542 | 195,959 |
Rents received in advance and tenant security deposits | 74,646 | 81,432 |
Total liabilities | 5,803,596 | 5,122,026 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
CAPITAL: | ||
Common units, 117,239,558 and 116,878,031 held by the general partner and 1,150,574 held by common limited partners issued and outstanding | 5,487,272 | 5,490,571 |
Noncontrolling interests in consolidated property partnerships (Note 1) | 180,253 | 184,390 |
Total capital | 5,667,525 | 5,674,961 |
TOTAL LIABILITIES AND EQUITY (CAPITAL) | $ 11,471,121 | $ 10,796,987 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (KILROY REALTY, L.P.)(Parenthetical) - Common Units - Kilroy Realty L.P. - shares | Sep. 30, 2023 | Dec. 31, 2022 |
General partner, units issued (in shares) | 117,239,558 | 116,878,031 |
General partners, units outstanding (in shares) | 117,239,558 | 116,878,031 |
Limited partners, units issued (in shares) | 1,150,574 | 1,150,574 |
Limited partners, units outstanding (in shares) | 1,150,574 | 1,150,574 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (KILROY REALTY, L.P.) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue, Product and Service [Extensible List] | Service [Member] | Service [Member] | ||
REVENUES | ||||
Rental income (Note 7) | $ 280,681 | $ 272,546 | $ 852,094 | $ 804,330 |
Other property income | 2,913 | 3,412 | 8,584 | 8,313 |
Total revenues | 283,594 | 275,958 | 860,678 | 812,643 |
EXPENSES | ||||
Property expenses | 59,445 | 52,075 | 168,233 | 147,421 |
Real estate taxes | 28,363 | 27,415 | 84,868 | 78,718 |
Ground leases | 2,390 | 1,771 | 7,172 | 5,473 |
General and administrative expenses (Note 6) | 24,761 | 23,524 | 71,356 | 68,425 |
Leasing costs | 1,852 | 1,015 | 4,550 | 3,475 |
Depreciation and amortization | 85,224 | 81,140 | 269,262 | 266,215 |
Total expenses | 202,035 | 186,940 | 605,441 | 569,727 |
OTHER INCOME (EXPENSES) | ||||
Interest and other income, net | 7,015 | 295 | 11,896 | 501 |
Interest expense (Note 4) | (29,837) | (19,982) | (81,891) | (60,728) |
Gain on sale of depreciable operating property | 0 | 17,329 | 0 | 17,329 |
Total other expenses | (22,822) | (2,358) | (69,995) | (42,898) |
NET INCOME | 58,737 | 86,660 | 185,242 | 200,018 |
Total income attributable to noncontrolling interests | (5,975) | (6,903) | (20,285) | (20,028) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (UNITHOLDERS) | $ 52,762 | $ 79,757 | $ 164,957 | $ 179,990 |
Net income available to common stockholders per share – basic (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Net income available to common stockholders per share – diluted (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Weighted average common shares outstanding – basic (in shares) | 117,184,609 | 116,872,953 | 117,133,420 | 116,782,621 |
Weighted average common shares outstanding – diluted (in shares) | 117,495,246 | 117,242,411 | 117,411,395 | 117,163,149 |
Kilroy Realty L.P. | ||||
Revenue, Product and Service [Extensible List] | Service [Member] | Service [Member] | ||
REVENUES | ||||
Rental income (Note 7) | $ 280,681 | $ 272,546 | $ 852,094 | $ 804,330 |
Other property income | 2,913 | 3,412 | 8,584 | 8,313 |
Total revenues | 283,594 | 275,958 | 860,678 | 812,643 |
EXPENSES | ||||
Property expenses | 59,445 | 52,075 | 168,233 | 147,421 |
Real estate taxes | 28,363 | 27,415 | 84,868 | 78,718 |
Ground leases | 2,390 | 1,771 | 7,172 | 5,473 |
General and administrative expenses (Note 6) | 24,761 | 23,524 | 71,356 | 68,425 |
Leasing costs | 1,852 | 1,015 | 4,550 | 3,475 |
Depreciation and amortization | 85,224 | 81,140 | 269,262 | 266,215 |
Total expenses | 202,035 | 186,940 | 605,441 | 569,727 |
OTHER INCOME (EXPENSES) | ||||
Interest and other income, net | 7,015 | 295 | 11,896 | 501 |
Interest expense (Note 4) | (29,837) | (19,982) | (81,891) | (60,728) |
Gain on sale of depreciable operating property | 0 | 17,329 | 0 | 17,329 |
Total other expenses | (22,822) | (2,358) | (69,995) | (42,898) |
NET INCOME | 58,737 | 86,660 | 185,242 | 200,018 |
Total income attributable to noncontrolling interests | (5,460) | (6,239) | (18,673) | (18,333) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (UNITHOLDERS) | $ 53,277 | $ 80,421 | $ 166,569 | $ 181,685 |
Net income available to common stockholders per share – basic (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Net income available to common stockholders per share – diluted (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Weighted average common shares outstanding – basic (in shares) | 118,335,183 | 118,023,527 | 118,283,994 | 117,933,195 |
Weighted average common shares outstanding – diluted (in shares) | 118,645,820 | 118,392,985 | 118,561,969 | 118,313,723 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL (KILROY REALTY, L.P.) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Net income | $ 58,737 | $ 61,275 | $ 65,230 | $ 86,660 | $ 53,975 | $ 59,383 | $ 185,242 | $ 200,018 |
Non-cash amortization of share-based compensation | 12,310 | 9,496 | 11,566 | 10,287 | 9,665 | 6,598 | ||
Settlement of restricted stock units | 0 | 0 | 0 | 0 | 0 | 0 | ||
Distributions to noncontrolling interests in consolidated property partnerships | (5,349) | (10,393) | (7,068) | (5,700) | (6,948) | (14,842) | ||
Noncontrolling Interests in Consolidated Property Partnerships | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Net income | 5,975 | 5,688 | 8,622 | 6,903 | 6,870 | 6,255 | ||
Distributions to noncontrolling interests in consolidated property partnerships | (5,349) | (10,393) | (7,068) | (5,700) | (6,948) | (14,842) | ||
Kilroy Realty L.P. | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Beginning balance | 5,667,594 | 5,672,422 | 5,674,961 | 5,652,551 | 5,665,761 | 5,689,870 | 5,674,961 | 5,689,870 |
Net income | 58,737 | 61,275 | 65,230 | 86,660 | 53,975 | 59,383 | 185,242 | 200,018 |
Issuance of share-based compensation awards | 538 | 726 | 1,365 | 505 | 635 | 1,942 | ||
Non-cash amortization of share-based compensation | 12,310 | 9,496 | 11,566 | 10,287 | 9,665 | 6,598 | ||
Settlement of restricted stock units | 0 | 0 | 0 | 0 | 0 | 0 | ||
Repurchase of common units and restricted stock units | (1,892) | (1,340) | (8,363) | (267) | (8,660) | (13,994) | ||
Distributions to noncontrolling interests in consolidated property partnerships | (5,349) | (10,393) | (7,068) | (5,700) | (6,948) | (14,842) | ||
Distributions declared per common unit | (64,413) | (64,592) | (65,269) | (64,259) | (61,877) | (63,196) | ||
Ending balance | $ 5,667,525 | $ 5,667,594 | $ 5,672,422 | $ 5,679,777 | $ 5,652,551 | $ 5,665,761 | $ 5,667,525 | $ 5,679,777 |
Kilroy Realty L.P. | Partners’ Capital | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Beginning balance (in shares) | 118,328,482 | 118,271,536 | 118,028,605 | 118,021,544 | 117,866,654 | 117,614,743 | 118,028,605 | 117,614,743 |
Beginning balance | $ 5,487,452 | $ 5,487,038 | $ 5,490,571 | $ 5,466,183 | $ 5,478,800 | $ 5,493,806 | $ 5,490,571 | $ 5,493,806 |
Net income | 53,277 | 56,124 | 57,168 | 80,421 | 47,620 | 53,644 | ||
Issuance of share-based compensation awards | 538 | 726 | 1,365 | 505 | 635 | 1,942 | ||
Non-cash amortization of share-based compensation | $ 12,310 | $ 9,496 | $ 11,566 | $ 10,287 | $ 9,665 | $ 6,598 | ||
Settlement of restricted stock units (in shares) | 115,492 | 103,135 | 445,973 | 11,930 | 273,382 | 459,050 | ||
Repurchase of common units and restricted stock units (in shares) | (53,842) | (46,189) | (203,042) | (5,447) | (118,492) | (207,139) | ||
Repurchase of common units and restricted stock units | $ (1,892) | $ (1,340) | $ (8,363) | $ (267) | $ (8,660) | $ (13,994) | ||
Distributions declared per common unit | $ (64,413) | $ (64,592) | $ (65,269) | $ (64,259) | $ (61,877) | $ (63,196) | ||
Ending balance (in shares) | 118,390,132 | 118,328,482 | 118,271,536 | 118,028,027 | 118,021,544 | 117,866,654 | 118,390,132 | 118,028,027 |
Ending balance | $ 5,487,272 | $ 5,487,452 | $ 5,487,038 | $ 5,492,870 | $ 5,466,183 | $ 5,478,800 | $ 5,487,272 | $ 5,492,870 |
Kilroy Realty L.P. | Noncontrolling Interests in Consolidated Property Partnerships | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Beginning balance | 180,142 | 185,384 | 184,390 | 186,368 | 186,961 | 196,064 | 184,390 | 196,064 |
Net income | 5,460 | 5,151 | 8,062 | 6,239 | 6,355 | 5,739 | ||
Distributions to noncontrolling interests in consolidated property partnerships | (5,349) | (10,393) | (7,068) | (5,700) | (6,948) | (14,842) | ||
Ending balance | $ 180,253 | $ 180,142 | $ 185,384 | $ 186,907 | $ 186,368 | $ 186,961 | $ 180,253 | $ 186,907 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CAPITAL (KILROY REALTY, L.P.) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Kilroy Realty L.P. | ||||||
Dividends declared per common unit (in dollars per unit) | $ 0.54 | $ 0.54 | $ 0.54 | $ 0.54 | $ 0.52 | $ 0.52 |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS (KILROY REALTY, L.P.) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 185,242 | $ 200,018 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of real estate assets and leasing costs | 263,662 | 261,129 |
Depreciation of non-real estate furniture, fixtures and equipment | 5,600 | 5,086 |
Revenue reversals for doubtful accounts, net (Note 7) | 3,931 | 191 |
Non-cash amortization of share-based compensation awards | 28,360 | 21,635 |
Non-cash amortization of deferred financing costs and debt discounts | 3,921 | 2,442 |
Non-cash amortization of net below market rents | (5,675) | (8,171) |
Gain on sale of depreciable operating property | 0 | (17,329) |
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (14,643) | (14,221) |
Straight-line rents | (16,533) | (38,239) |
Amortization of right of use ground lease assets | 765 | 594 |
Net change in other operating assets | 2,042 | (5,323) |
Net change in other operating liabilities | 35,694 | 76,418 |
Net cash provided by operating activities | 492,366 | 484,230 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of certificates of deposit (Note 2) | (252,830) | 0 |
Expenditures for development and redevelopment properties and undeveloped land | (338,794) | (334,711) |
Expenditures for operating properties and other capital assets | (68,853) | (65,526) |
Expenditures for acquisitions of development properties and undeveloped land | 0 | (40,033) |
Net proceeds received from disposition | 0 | 33,416 |
Net cash used in investing activities | (660,477) | (406,854) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock and restricted stock units | (11,595) | (22,921) |
Distributions to noncontrolling interests in consolidated property partnerships | (22,818) | (27,497) |
Dividends and distributions paid to common stockholders and common unitholders | (191,499) | (183,822) |
Financing costs | (10,962) | (3,083) |
Principal payments and repayments of secured debt | (4,310) | (4,146) |
Proceeds from issuance of secured debt (Note 4) | 375,000 | 0 |
Borrowings on unsecured debt (Note 4) | 320,000 | 0 |
Repurchases of unsecured debt (Note 4) | (14,290) | 0 |
Net cash provided by (used in) financing activities | 439,526 | (241,469) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 271,415 | (164,093) |
Cash and cash equivalents and restricted cash, beginning of period | 347,379 | 427,083 |
Cash and cash equivalents and restricted cash, end of period | 618,794 | 262,990 |
Kilroy Realty L.P. | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | 185,242 | 200,018 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of real estate assets and leasing costs | 263,662 | 261,129 |
Depreciation of non-real estate furniture, fixtures and equipment | 5,600 | 5,086 |
Revenue reversals for doubtful accounts, net (Note 7) | 3,931 | 191 |
Non-cash amortization of share-based compensation awards | 28,360 | 21,635 |
Non-cash amortization of deferred financing costs and debt discounts | 3,921 | 2,442 |
Non-cash amortization of net below market rents | (5,675) | (8,171) |
Gain on sale of depreciable operating property | 0 | (17,329) |
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements | (14,643) | (14,221) |
Straight-line rents | (16,533) | (38,239) |
Amortization of right of use ground lease assets | 765 | 594 |
Net change in other operating assets | 2,042 | (5,323) |
Net change in other operating liabilities | 35,694 | 76,418 |
Net cash provided by operating activities | 492,366 | 484,230 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of certificates of deposit (Note 2) | (252,830) | 0 |
Expenditures for development and redevelopment properties and undeveloped land | (338,794) | (334,711) |
Expenditures for operating properties and other capital assets | (68,853) | (65,526) |
Expenditures for acquisitions of development properties and undeveloped land | 0 | (40,033) |
Net proceeds received from disposition | 0 | 33,416 |
Net cash used in investing activities | (660,477) | (406,854) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock and restricted stock units | (11,595) | (22,921) |
Distributions to noncontrolling interests in consolidated property partnerships | (22,818) | (27,497) |
Dividends and distributions paid to common stockholders and common unitholders | (191,499) | (183,822) |
Financing costs | (10,962) | (3,083) |
Principal payments and repayments of secured debt | (4,310) | (4,146) |
Proceeds from issuance of secured debt (Note 4) | 375,000 | 0 |
Borrowings on unsecured debt (Note 4) | 320,000 | 0 |
Net cash provided by (used in) financing activities | 439,526 | (241,469) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 271,415 | (164,093) |
Cash and cash equivalents and restricted cash, beginning of period | 347,379 | 427,083 |
Cash and cash equivalents and restricted cash, end of period | $ 618,794 | $ 262,990 |
Organization, Ownership and Bas
Organization, Ownership and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Ownership and Basis of Presentation | Organization, Ownership and Basis of Presentation Organization and Ownership Kilroy Realty Corporation (the “Company”) is a self-administered real estate investment trust (“REIT”) active in premier office, life science and mixed-use submarkets in the United States. We own, develop, acquire and manage real estate assets, consisting primarily of Class A properties in Greater Los Angeles, San Diego County, the San Francisco Bay Area, Greater Seattle and Austin, Texas, 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”). 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 properties at September 30, 2023: Number of Rentable Number of Percentage Occupied (1) Percentage Leased Stabilized Office Properties (2) 120 16,285,153 401 86.2 % 87.5 % ________________________ (1) Represents economic occupancy. (2) Includes stabilized life science and retail space. Number of Number of 2023 Average Occupancy Stabilized Residential Properties 3 1,001 92.9 % Our stabilized portfolio includes all of our properties with the exception of development properties currently committed for construction, under construction, or in the tenant improvement phase, redevelopment properties under construction, undeveloped land and real estate assets held for sale. 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 properties in the tenant improvement phase as office and life science properties that we are developing or redeveloping where the project has reached cold shell condition and is ready for tenant improvements, which may require additional major base building construction before being placed in service. Projects in the tenant improvement phase are added to our stabilized portfolio once the project reaches the earlier of 95% occupancy or one year from the date of the cessation of major base building construction activities. Costs capitalized to construction in progress for development and redevelopment properties are transferred to land and improvements, buildings and improvements, and deferred leasing costs on our consolidated balance sheets at the historical cost of the property as the projects or phases of projects are placed in service. During the nine months ended September 30, 2023, we added one development project to our stabilized portfolio consisting of one building totaling 70,616 square feet of office space in San Diego, California. As of September 30, 2023, the following properties were excluded from our stabilized portfolio: Number of Estimated Rentable Square Feet (1) In-process development projects - tenant improvement 1 734,000 In-process development projects - under construction 1 875,000 In-process redevelopment projects - under construction 2 100,000 ________________________ (1) Estimated rentable square feet upon completion. We did not have any properties held for sale at September 30, 2023. Our stabilized portfolio also excludes our future development pipeline, which as of September 30, 2023 was comprised of eight future development sites, representing approximately 64 gross acres of undeveloped land. As of September 30, 2023, all of our properties, development projects and redevelopment projects were owned and all of our business was conducted in the state of California with the exception of ten stabilized office properties and one future development project located in the state of Washington, and one development project in the tenant improvement phase and one future development project in Austin, Texas. All of our properties, development projects and redevelopment projects are 100% owned, excluding four office properties owned by three consolidated property partnerships. Two of the three consolidated property partnerships, 100 First Street Member, LLC (“100 First LLC”) and 303 Second Street Member, LLC (“303 Second LLC”), each owned one office property in San Francisco, California through subsidiary REITs. As of September 30, 2023, the Company owned a 56% common equity interest in both 100 First LLC and 303 Second LLC. The third consolidated property partnership, Redwood City Partners, LLC (“Redwood LLC”) owned two office properties in Redwood City, California. As of September 30, 2023, the Company owned an approximate 93% common equity interest in Redwood LLC. The remaining interests in all three property partnerships were owned by unrelated third parties. Ownership and 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, 303 Second LLC, 100 First LLC, Redwood 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, 303 Second LLC, 100 First LLC, Redwood LLC and all of our wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. As of September 30, 2023, the Company owned an approximate 99.0% common general partnership interest in the Operating Partnership. The remaining approximate 1.0% common limited partnership interest in the Operating Partnership as of September 30, 2023 was owned by non-affiliated investors and certain of our executive officers and directors. Both the general and limited common partnership interests in the Operating Partnership are denominated in common units. Generally, the number of common units held by the Company is 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”. With the exception of the Operating Partnership and our consolidated property partnerships, all of our subsidiaries are wholly-owned. 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, 2023. The interim financial statements for the Company and the Operating Partnership should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2022. Variable Interest Entities The Operating Partnership is a variable interest entity (“VIE”) that is consolidated by the Company as the primary beneficiary as the Operating Partnership is a limited partnership in which the common limited partners do not have substantive kick-out or participating rights. At September 30, 2023, the consolidated financial statements of the Company included two VIEs in addition to the Operating Partnership: 100 First LLC and 303 Second LLC. At September 30, 2023, the Company and the Operating Partnership were determined to be the primary beneficiaries of these two VIEs since we had the ability to control the activities that most significantly impact each of the VIEs’ economic performance. As of September 30, 2023, the two VIEs’ total assets, liabilities and noncontrolling interests included on our consolidated balance sheet were approximately $423.9 million (of which $353.2 million related to real estate held for investment), approximately $26.9 million and approximately $175.5 million , respectively. Revenues, income and net assets generated by 100 First LLC and 303 Second LLC may only be used to settle their contractual obligations, which primarily consist of operating expenses, capital expenditures and required distributions. At December 31, 2022, the consolidated financial statements of the Company included two VIEs in addition to the Operating Partnership: 100 First LLC and 303 Second LLC. At December 31, 2022, the Company and the Operating Partnership were determined to be the primary beneficiaries of these two VIEs since we had the ability to control the activities that most significantly impact each of the VIEs’ economic performance. At December 31, 2022, the impact of consolidating the VIEs increased the Company’s total assets, liabilities and noncontrolling interests on our consolidated balance sheet by approximately $438.7 million (of which $362.7 million related to real estate held for investment), approximately $31.5 million and approximately $179.4 million, respectively. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities consisted of the following at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (in thousands) Deferred compensation plan assets $ 25,959 $ 23,547 Certificates of deposit 252,830 — Total marketable securities $ 278,789 $ 23,547 |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets, Net | Prepaid Expenses and Other Assets, Net Prepaid expenses and other assets, net consisted of the following at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (in thousands) Furniture, fixtures and other long-lived assets, net $ 37,940 $ 41,538 Prepaid expenses and deferred financing costs, net 17,558 11,364 Other assets 4,643 9,527 Total prepaid expenses and other assets, net $ 60,141 $ 62,429 |
Secured and Unsecured Debt of t
Secured and Unsecured Debt of the Operating Partnership | 9 Months Ended |
Sep. 30, 2023 | |
Kilroy Realty L.P. | |
Debt Instrument [Line Items] | |
Secured and Unsecured Debt of the Operating Partnership | Secured and Unsecured Debt of the Operating Partnership Secured Debt In July 2023, certain of our and the Operating Partnership’s subsidiaries entered into a $375.0 million mortgage loan transaction (the “Loan”) secured by, among other things, a deed of trust, assignment of leases and rents, security agreement and fixture filing encumbering two office buildings, 608 apartment units and over 95,000 square feet of retail at the Company’s One Paseo mixed-use campus in Del Mar, California. The Loan matures on August 10, 2034, bears interest at an annual rate of 5.90% and requires monthly interest payments only, which commenced on September 10, 2023. In addition, the Operating Partnership has entered into a guaranty in favor of the lender in connection with the Loan. The Loan is generally non-recourse to the Operating Partnership, but the lender has recourse to the Operating Partnership for certain recourse exceptions. Unsecured Debt The Company generally guarantees all of the Operating Partnership’s unsecured debt obligations including the unsecured revolving credit facility, the unsecured term loan facility and all of the unsecured senior notes. Partial Repurchase of $425.0 Million Unsecured Senior Note During the three months ended September 30, 2023, the Company completed open-market repurchases of $14.3 million of the Operating Partnership’s 3.45% $425.0 million unsecured senior notes due December 15, 2024 at a discount, leaving an aggregate remaining principal balance of $410.7 million. Unsecured Revolving Credit Facility and Term Loan Facility The following table summarizes the balance and terms of our unsecured revolving credit facility as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (in thousands) Outstanding borrowings $ — $ — Remaining borrowing capacity 1,100,000 1,100,000 Total borrowing capacity (1) $ 1,100,000 $ 1,100,000 Interest rate (2) 6.31 % 5.20 % Facility fee-annual rate (3) 0.200% Maturity date (4) July 31, 2025 ________________________ (1) Total borrowing capacity is reduced by the amount of our outstanding letters of credit which total approximately $5.2 million as of the date of this report. We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $500.0 million under an accordion feature pursuant to the terms of the unsecured revolving credit facility. (2) Our unsecured revolving credit facility interest rate was calculated using a contractual rate of Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment of 0.10% (“Adjusted SOFR”) and a margin of 0.900% based on our credit rating as of September 30, 2023 and December 31, 2022. We may be entitled to a temporary 0.01% reduction in the interest rate provided we meet certain sustainability goals with respect to the ongoing reduction of greenhouse gas emissions. (3) 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 September 30, 2023 and December 31, 2022, $3.7 million and $5.3 million of unamortized deferred financing costs, respectively, which are included in prepaid expenses and other assets, net on our consolidated balance sheets, remained to be amortized through the maturity date of our unsecured revolving credit facility. (4) The maturity date may be extended by two six-month periods, at the Company’s option. The Company intends to borrow under the unsecured revolving credit facility from time to time for general corporate purposes, to finance development and redevelopment expenditures, to fund potential acquisitions and to potentially repay long-term debt and to supplement cash balances given uncertainties and volatility in market conditions. In January 2023, the Operating Partnership entered into the first amendment to its existing unsecured term loan facility agreement to (i) exercise the accordion feature under the term loan agreement to provide for $100.0 million of additional term loan commitments and (ii) increase the borrowing capacity under the accordion feature to provide additional term loan commitments or add one or more tranches of term loans up to an aggregate amount of $650.0 million. In March 2023, the Operating Partnership further amended the unsecured term loan facility agreement to exercise the accordion feature to provide for $20.0 million of additional term loan commitments, bringing the total borrowing capacity of the unsecured term loan facility to $520.0 million. The following table summarizes the balance and terms of our unsecured term loan facility as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (in thousands) Outstanding borrowings $ 520,000 $ 200,000 Remaining borrowing capacity — 200,000 Total borrowing capacity (1) $ 520,000 $ 400,000 Interest rate (2) 6.37 % 5.23 % Undrawn facility fee-annual rate (3) 0.200% Maturity date (4) October 3, 2024 ____________________ (1) We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $130.0 million and $100.0 million as of September 30, 2023 and December 31, 2022, respectively, under an accordion feature pursuant to the terms of the unsecured term loan facility. (2) Our unsecured term loan facility interest rate was calculated using a contractual rate of Adjusted SOFR plus a margin of 0.950% based on our credit rating as of September 30, 2023 and December 31, 2022. (3) Our undrawn facility fee is paid on a quarterly basis and is calculated based on the remaining borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of September 30, 2023 and December 31, 2022, $3.1 million and $4.5 million, respectively, of unamortized deferred financing costs remained to be amortized through the maturity date of our unsecured term loan facility. (4) The maturity date may be extended by two twelve-month periods, at the Company’s option. Debt Covenants and Restrictions The unsecured revolving credit facility, unsecured term loan facility, the unsecured senior notes, including the private placement 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 maximum ratio of secured debt to total asset value, 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 were in compliance with all of our debt covenants as of September 30, 2023. Debt Maturities The following table summarizes the stated debt maturities and scheduled amortization payments for all outstanding debt as of September 30, 2023: Year (in thousands) Remaining 2023 $ 1,465 2024 (1) 936,716 2025 406,246 2026 401,317 2027 249,125 2028 400,000 Thereafter 2,575,000 Total aggregate principal value (2) $ 4,969,869 ________________________ (1) Includes the $520.0 million outstanding as of September 30, 2023 on the unsecured term loan facility maturing on October 3, 2024, for which the Company has two twelve-month extension options. (2) Includes gross principal balance of outstanding debt before the effect of the following at September 30, 2023: $29.5 million of unamortized deferred financing costs for the unsecured term loan facility, unsecured senior notes and secured debt and $5.6 million of unamortized discounts for the unsecured senior notes. Capitalized Interest and Loan Fees The following table sets forth gross interest expense, including debt discount and deferred financing cost amortization, net of capitalized interest, for the three and nine months ended September 30, 2023 and 2022. 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Gross interest expense $ 49,893 $ 39,659 $ 139,148 $ 118,995 Capitalized interest and deferred financing costs (20,056) (19,677) (57,257) (58,267) Interest expense $ 29,837 $ 19,982 $ 81,891 $ 60,728 |
Noncontrolling Interests on the
Noncontrolling Interests on the Company's Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2023 | |
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 an approximate 99.0% common general partnership interest in the Operating Partnership as of September 30, 2023, December 31, 2022 and September 30, 2022. The remaining approximate 1.0% common limited partnership interest as of September 30, 2023, December 31, 2022 and September 30, 2022 was owned by non-affiliated investors and certain of our executive officers and directors in the form of noncontrolling common units. There were 1,150,574 common units outstanding held by these investors, executive officers and directors as of September 30, 2023, December 31, 2022 and September 30, 2022. 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 $0.01 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 $37.8 million and $44.7 million as of September 30, 2023 and December 31, 2022, 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. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Stockholder Approved Share-Based Incentive Compensation Plan As of September 30, 2023, we maintained one share-based incentive compensation plan, the Kilroy Realty 2006 Incentive Award Plan, as amended (the “2006 Plan”). The Company has a currently effective registration statement registering 12.6 million shares of our common stock for possible issuance under our 2006 Plan. As of September 30, 2023, approximately 2.9 million shares were available for grant under the 2006 Plan. The calculation of shares available for grant is presented after taking into account a reserve for a sufficient number of shares to cover the vesting and payment of 2006 Plan awards that were outstanding on that date, including performance-based vesting awards at (i) levels actually achieved for the performance conditions (as defined below) for which the performance period has been completed and (ii) at maximum levels for the other performance and market conditions (as defined below) for awards still in a performance period. Executive Transitions On March 30, 2023, our Chief Executive Officer (“CEO”) announced his retirement effective December 31, 2023. Additionally, as previously disclosed, the Company and our former President entered into a separation agreement in 2022 under which he continued to serve as an officer of the Company until the scheduled expiration date of his employment agreement on March 1, 2023. For our CEO, the vesting of all unvested share-based compensation awards is being accelerated through December 31, 2023 and the final number of any restricted stock units (“RSUs”) subject to market and/or performance-based vesting requirements that vest will be based upon a shortened performance period ending on December 31, 2023. Share-based compensation expense for these awards will be recognized based on our current assumption of the achievement of market and/or performance-based vesting requirements for the shortened performance periods. For our former President, the vesting of all unvested share-based compensation awards was accelerated through March 1, 2023 and the final number of RSUs earned that were subject to market and/or performance-based vesting requirements was based upon the actual achievement of the market and/or performance conditions for a shortened performance period ended on March 1, 2023. For the three and nine months ended September 30, 2023, we recognized $8.0 million and $21.2 million, respectively, of stock compensation expense related to the accelerated vesting of awards for our CEO and former President. 2023 Share-Based Compensation Grants In February 2023, the Executive Compensation Committee of the Company’s Board of Directors awarded 517,066 restricted stock units to certain officers of the Company under the 2006 Plan, which included 300,007 RSUs (at the target level of performance) that are subject to market and/or performance-based vesting requirements (the “2023 Performance-Based RSUs”) and 217,059 RSUs that are subject to time-based vesting requirements (the “2023 Time-Based RSUs”). 2023 Performance-Based RSU Grant The 2023 Performance-Based RSUs are scheduled to vest at the end of a three year period (consisting of calendar years 2023-2025), except for our CEO, whose RSUs are scheduled to vest on his announced retirement date of December, 31, 2023. A target number of 2023 Performance-Based RSUs were awarded, and the final number of 2023 Performance-Based RSUs that vest (which may be more or less than the target number) will be based upon (1) during the first calendar year of the three year performance measurement period, the achievement of pre-set FFO per share goals that applies to 100% of the Performance-Based RSUs awarded (the “FFO Performance Condition”) and (2) a performance measure that applies to 50% of the award based upon a measure of the Company’s average debt to EBITDA ratio for the three year performance period (the “Debt to EBITDA Ratio Performance Condition”) and a market measure that applies to the other 50% of the award based upon the relative ranking of the Company’s total stockholder return for the three year performance period compared to the total stockholder returns of an established comparison group of companies over the same period (the “Market Condition”). The 2023 Performance-Based RSUs are also subject to a three year service vesting provision (the “service vesting condition”) and are scheduled to cliff vest on the date the final vesting percentage is determined following the end of the three year performance period under the awards. The number of 2023 Performance-Based RSUs ultimately earned could fluctuate from the target number of 2023 Performance-Based RSUs granted based upon the levels of achievement for the FFO Performance Condition, the Debt to EBITDA Ratio Performance Condition, the Market Condition, and the extent to which the service vesting condition is satisfied. The estimate of the number of 2023 Performance-Based RSUs earned is evaluated quarterly during the performance period based on our estimate for each of the performance conditions measured against the applicable goals. Compensation expense for the 2023 Performance-Based RSU grant is recognized on a straight-line basis over the requisite service period for each participant, which is generally the three year service period, except for our CEO, whose compensation expense is recognized on an accelerated basis through his announced retirement date of December 31, 2023. During the nine months ended September 30, 2023, we recognized $10.2 million of compensation expense for the 2023 Performance-Based RSU grant assuming the 2023 FFO Performance Condition is met at 150% of the target level of achievement (175% for our CEO) and the 2023 Debt to EBITDA Ratio Performance Condition is met at 100% of the target level of achievement (175% for our CEO). In the event we achieve a lower level of performance or fail to meet the FFO performance condition, we would reverse a portion or all of the $10.2 million of compensation expense. Each 2023 Performance-Based RSU represents the right to receive one share of our common stock in the future, subject to, and as modified by the Company’s level of achievement of the applicable performance and market conditions. The fair value of the portion of the award subject to the Debt to EBITDA Ratio Performance Condition was calculated using the closing price of the Company’s common stock on the valuation date noted below. The fair value of the portion of the award subject to the Market Condition was calculated using a Monte Carlo simulation pricing model based on the assumptions in the table below, which resulted in the following grant date fair value per share. Fair Value Assumptions Valuation date February 6, 2023 Fair value per share on valuation date (1) $40.10 Expected share price volatility 35.0% Risk-free interest rate 4.12% ________________________ (1) For one participant, the fair value per share on the valuation date for their 2023 Performance-Based RSUs is $40.43. The computation of expected volatility was based on a blend of the historical volatility of our shares of common stock over a period of twice the remaining performance period as of the grant date and implied volatility data based on the observed pricing of six month publicly-traded options on shares of our common stock. The risk-free interest rate was based on the yield curve on zero-coupon U.S. Treasury STRIP securities in effect at February 6, 2023. The fair value of the 2023 Performance-Based RSU grant as of the valuation date noted above, based on a target level of achievement, was $12.0 million. For the three and nine months ended September 30, 2023, we recorded compensation expense based upon the grant date fair value per share for each component multiplied by the estimated number of RSUs to be earned. 2023 Time-Based RSU Grant The 2023 Time-Based RSUs are scheduled to vest in three equal annual installments beginning on January 5, 2024 through January 5, 2026. Compensation expense for the 2023 Time-Based RSUs is recognized on a straight-line basis over the requisite service period, which is generally the explicit service period except for our CEO, whose compensation expense is recognized on an accelerated basis through his announced retirement date of December 31, 2023. Each 2023 Time-Based RSU represents the right to receive one share of our common stock in the future, subject to continued employment through the applicable vesting date, unless accelerated upon separation of employment, provided certain conditions are met. The total grant date fair value of the 2023 Time-Based RSU awards was $8.6 million, which was based on the $39.65 closing share price of the Company’s common stock on the NYSE on the February 6, 2023 grant date. 2022 and 2021 Performance-Based RSUs Compensation cost for the 2022 performance-based RSUs for the three and nine months ended September 30, 2023 assumes the 2022 Debt to EBITDA Ratio Performance Condition is met at 150% of the target level of achievement (175% for our CEO). Compensation cost for the 2021 performance-based RSUs for the three and nine months ended September 30, 2023 assumes the 2021 Debt to EBITDA Ratio Performance Condition is met at 150% of the target level of achievement (175% for our CEO). Share-Based Compensation Cost Recorded During the Period The total compensation cost for all share-based compensation programs was $12.3 million and $10.3 million for the three months ended September 30, 2023 and 2022, respectively, and $33.4 million and $26.5 million for the nine months ended September 30, 2023 and 2022, respectively. Share-based compensation costs for the three and nine months ended September 30, 2023 include $8.0 million and $21.2 million, respectively, of accelerated share-based compensation costs for our CEO and former President as discussed above. Of the total share-based compensation costs, $1.7 million and $5.0 million was capitalized as part of the real estate assets for the three and nine months ended September 30, 2023, respectively, and $1.9 million and $5.0 million was capitalized as part of the real estate assets for the three and nine months ended September 30, 2022, respectively. As of September 30, 2023, there was approximately $28.5 million of total unrecognized compensation cost related to nonvested RSUs granted under share-based compensation arrangements. Such amount is based in part upon the estimated future outcome of the performance metrics as of September 30, 2023, and the actual compensation cost ultimately recognized could increase or decrease from this estimate based upon actual performance results. These costs are expected to be recognized over a weighted-average period of 1.4 years, which includes the shortened vesting period for our CEO due to his announced retirement on December 31, 2023. The remaining compensation cost related to these nonvested RSU awards had been recognized in periods prior to September 30, 2023. |
Rental Income and Future Minimu
Rental Income and Future Minimum Rent | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Rental Income and Future Minimum Rent | Rental Income and Future Minimum Rent Our rental income is primarily comprised of payments defined under leases and are subject to scheduled fixed increases. Additionally, rental income includes variable payments for tenant reimbursements of property-related expenses and payments based on a percentage of tenant’s sales. The table below sets forth the allocation of rental income between fixed and variable payments and net collectability reversals or recoveries for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Fixed lease payments $ 232,090 $ 231,747 $ 713,254 $ 685,797 Variable lease payments 49,232 42,503 142,771 118,724 Net collectability reversals (1) (641) (1,704) (3,931) (191) Total rental income $ 280,681 $ 272,546 $ 852,094 $ 804,330 _____________________ (1) Represents adjustments to rental income related to our assessment of the collectability of amounts due under leases with our tenants, including recognition of deferred rent balances associated with tenants restored from a cash basis of revenue recognition to an accrual basis of revenue recognition and allowances for uncollectible receivables and leases deemed not probable of collection. We have operating leases with tenants that expire at various dates through 2048 and are subject to scheduled fixed increases. Generally, the leases grant tenants renewal options. Leases also provide for additional rents based on certain operating expenses. Future contractual minimum rent under operating leases, which includes amounts contractually due from leases that are on a cash basis of reporting due to creditworthiness considerations, as of September 30, 2023 for future periods is summarized as follows: Year Ending (in thousands) Remaining 2023 $ 202,244 2024 805,187 2025 797,014 2026 746,466 2027 681,760 2028 636,557 Thereafter 1,924,042 Total (1) $ 5,793,270 _____________________ (1) Excludes residential leases and leases with a term of one year or less. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General As of September 30, 2023, we had commitments of approximately $396.5 million, excluding our ground lease commitments, for contracts and executed leases directly related to our operating, development and redevelopment properties. Environmental Matters As of September 30, 2023, we had accrued environmental remediation liabilities of approximately $77.8 million |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 9 Months Ended |
Sep. 30, 2023 | |
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 our consolidated financial statements are the marketable securities related to our Deferred Compensation Plan. The following table sets forth the fair value of our deferred compensation plan assets as of September 30, 2023 and December 31, 2022: Fair Value (Level 1) (1) September 30, 2023 December 31, 2022 Description (in thousands) Deferred compensation plan assets (2) $ 25,959 $ 23,547 ________________________ (1) Based on quoted prices in active markets for identical securities. (2) The deferred compensation plan assets are held in a limited rabbi trust. 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 September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Carrying Fair (1) Carrying Fair (1) (in thousands) Assets Certificates of deposit (2) $ 252,830 $ 252,830 $ — $ — Liabilities Secured debt, net $ 604,480 $ 565,256 $ 242,938 $ 225,847 Unsecured debt, net $ 4,330,326 $ 3,741,167 $ 4,020,058 $ 3,500,420 ________________________ (1) Fair value calculated using Level 2 inputs, which are based on model-derived valuations in which significant inputs and significant value drivers are observable in active markets. (2) The carrying value of the certificates of deposit approximate their fair values due to their short-term maturities. The Company intends to hold the certificates of deposit until their maturity dates in January and April 2024. |
Net Income Available to Common
Net Income Available to Common Stockholders Per Share of the Company | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income 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 nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except share and per share amounts) Numerator: Net income available to common stockholders $ 52,762 $ 79,757 $ 164,957 $ 179,990 Allocation to participating securities (1) (269) (287) (959) (980) Numerator for basic and diluted net income available to common stockholders $ 52,493 $ 79,470 $ 163,998 $ 179,010 Denominator: Basic weighted average vested shares outstanding 117,184,609 116,872,953 117,133,420 116,782,621 Effect of dilutive securities 310,637 369,458 277,975 380,528 Diluted weighted average vested shares and common stock equivalents outstanding 117,495,246 117,242,411 117,411,395 117,163,149 Basic earnings per share: Net income available to common stockholders per share $ 0.45 $ 0.68 $ 1.40 $ 1.53 Diluted earnings per share: Net income available to common stockholders per share $ 0.45 $ 0.68 $ 1.40 $ 1.53 ________________________ (1) Participating securities include certain time-based RSUs and vested market measure-based RSUs. Share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities. The impact of potentially dilutive common shares, including stock options and RSUs are considered in our diluted earnings per share calculation for the three and nine months ended September 30, 2023 and 2022. Certain market measure-based RSUs are not included in dilutive securities for the three and nine months ended September 30, 2023 and 2022, as not all performance metrics had been met by the end of the applicable reporting periods. Additionally, certain unvested time-based RSUs are not included in dilutive securities for the nine months ended September 30, 2023, as they were anti-dilutive. |
Net Income Available to Commo_2
Net Income Available to Common Unitholders Per Unit of the Operating Partnership | 9 Months Ended |
Sep. 30, 2023 | |
Net Income Available To Common Unitholders [Line Items] | |
Net Income Available to Common Unitholders Per Unit of the Operating Partnership | 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 nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except share and per share amounts) Numerator: Net income available to common stockholders $ 52,762 $ 79,757 $ 164,957 $ 179,990 Allocation to participating securities (1) (269) (287) (959) (980) Numerator for basic and diluted net income available to common stockholders $ 52,493 $ 79,470 $ 163,998 $ 179,010 Denominator: Basic weighted average vested shares outstanding 117,184,609 116,872,953 117,133,420 116,782,621 Effect of dilutive securities 310,637 369,458 277,975 380,528 Diluted weighted average vested shares and common stock equivalents outstanding 117,495,246 117,242,411 117,411,395 117,163,149 Basic earnings per share: Net income available to common stockholders per share $ 0.45 $ 0.68 $ 1.40 $ 1.53 Diluted earnings per share: Net income available to common stockholders per share $ 0.45 $ 0.68 $ 1.40 $ 1.53 ________________________ (1) Participating securities include certain time-based RSUs and vested market measure-based RSUs. Share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities. The impact of potentially dilutive common shares, including stock options and RSUs are considered in our diluted earnings per share calculation for the three and nine months ended September 30, 2023 and 2022. Certain market measure-based RSUs are not included in dilutive securities for the three and nine months ended September 30, 2023 and 2022, as not all performance metrics had been met by the end of the applicable reporting periods. Additionally, certain unvested time-based RSUs are not included in dilutive securities for the nine months ended September 30, 2023, as they were anti-dilutive. |
Kilroy Realty L.P. | |
Net Income Available To Common Unitholders [Line Items] | |
Net Income 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 nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except unit and per unit amounts) Numerator: Net income available to common unitholders $ 53,277 $ 80,421 $ 166,569 $ 181,685 Allocation to participating securities (1) (269) (287) (959) (980) Numerator for basic and diluted net income available to common unitholders $ 53,008 $ 80,134 $ 165,610 $ 180,705 Denominator: Basic weighted average vested units outstanding 118,335,183 118,023,527 118,283,994 117,933,195 Effect of dilutive securities 310,637 369,458 277,975 380,528 Diluted weighted average vested units and common unit equivalents outstanding 118,645,820 118,392,985 118,561,969 118,313,723 Basic earnings per unit: Net income available to common unitholders per unit $ 0.45 $ 0.68 $ 1.40 $ 1.53 Diluted earnings per unit: Net income available to common unitholders per unit $ 0.45 $ 0.68 $ 1.40 $ 1.53 ________________________ (1) Participating securities include certain time-based RSUs and vested market measure-based RSUs. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information of the Company | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information of the Company | Supplemental Cash Flow Information of the Company Supplemental cash flow information follows (in thousands): Nine Months Ended September 30, 2023 2022 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $53,637 and $55,080 as of September 30, 2023 and 2022, respectively $ 60,528 $ 43,838 Cash paid for amounts included in the measurement of ground lease liabilities $ 4,939 $ 4,719 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development and redevelopment properties $ 98,631 $ 97,014 Tenant improvements funded directly by tenants $ 6,026 $ 7,397 NON-CASH FINANCING TRANSACTIONS: Accrual of dividends and distributions payable to common stockholders and common unitholders (Note 14) $ 64,423 $ 64,271 The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the nine months ended September 30, 2023 and 2022. Nine Months Ended September 30, 2023 2022 (in thousands) RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 347,379 $ 414,077 Restricted cash at beginning of period — 13,006 Cash and cash equivalents and restricted cash at beginning of period $ 347,379 $ 427,083 Cash and cash equivalents at end of period $ 618,794 $ 249,981 Restricted cash at end of period — 13,009 Cash and cash equivalents and restricted cash at end of period $ 618,794 $ 262,990 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information of the Operating Partnership | 9 Months Ended |
Sep. 30, 2023 | |
Other Significant Noncash Transactions [Line Items] | |
Supplemental Cash Flow Information of the Operating Partnership | Supplemental Cash Flow Information of the Company Supplemental cash flow information follows (in thousands): Nine Months Ended September 30, 2023 2022 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $53,637 and $55,080 as of September 30, 2023 and 2022, respectively $ 60,528 $ 43,838 Cash paid for amounts included in the measurement of ground lease liabilities $ 4,939 $ 4,719 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development and redevelopment properties $ 98,631 $ 97,014 Tenant improvements funded directly by tenants $ 6,026 $ 7,397 NON-CASH FINANCING TRANSACTIONS: Accrual of dividends and distributions payable to common stockholders and common unitholders (Note 14) $ 64,423 $ 64,271 The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the nine months ended September 30, 2023 and 2022. Nine Months Ended September 30, 2023 2022 (in thousands) RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 347,379 $ 414,077 Restricted cash at beginning of period — 13,006 Cash and cash equivalents and restricted cash at beginning of period $ 347,379 $ 427,083 Cash and cash equivalents at end of period $ 618,794 $ 249,981 Restricted cash at end of period — 13,009 Cash and cash equivalents and restricted cash at end of period $ 618,794 $ 262,990 |
Kilroy Realty L.P. | |
Other Significant Noncash Transactions [Line Items] | |
Supplemental Cash Flow Information of the Operating Partnership | Supplemental Cash Flow Information of the Operating Partnership Supplemental cash flow information follows (in thousands): Nine Months Ended September 30, 2023 2022 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $53,637 and $55,080 as of September 30, 2023 and 2022, respectively $ 60,528 $ 43,838 Cash paid for amounts included in the measurement of ground lease liabilities $ 4,939 $ 4,719 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development and redevelopment properties $ 98,631 $ 97,014 Tenant improvements funded directly by tenants $ 6,026 $ 7,397 NON-CASH FINANCING TRANSACTIONS: Accrual of distributions payable to common unitholders (Note 14) $ 64,423 $ 64,271 The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the nine months ended September 30, 2023 and 2022. Nine Months Ended September 30, 2023 2022 (in thousands) RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 347,379 $ 414,077 Restricted cash at beginning of period — 13,006 Cash and cash equivalents and restricted cash at beginning of period $ 347,379 $ 427,083 Cash and cash equivalents at end of period $ 618,794 $ 249,981 Restricted cash at end of period — 13,009 Cash and cash equivalents and restricted cash at end of period $ 618,794 $ 262,990 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 11, 2023, aggregate dividends, distributions and dividend equivalents of $64.4 million were paid to common stockholders, common unitholders and RSU holders of record on September 30, 2023. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization, Ownership and B_2
Organization, Ownership and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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, 303 Second LLC, 100 First LLC, Redwood 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, 303 Second LLC, 100 First LLC, Redwood LLC and all of our wholly-owned and controlled subsidiaries. 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, 2023. The interim financial statements for the Company and the Operating Partnership should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2022. |
Organization, Ownership and B_3
Organization, Ownership and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Real Estate Properties | Our stabilized portfolio of operating properties was comprised of the following properties at September 30, 2023: Number of Rentable Number of Percentage Occupied (1) Percentage Leased Stabilized Office Properties (2) 120 16,285,153 401 86.2 % 87.5 % ________________________ (1) Represents economic occupancy. (2) Includes stabilized life science and retail space. Number of Number of 2023 Average Occupancy Stabilized Residential Properties 3 1,001 92.9 % Number of Estimated Rentable Square Feet (1) In-process development projects - tenant improvement 1 734,000 In-process development projects - under construction 1 875,000 In-process redevelopment projects - under construction 2 100,000 ________________________ (1) Estimated rentable square feet upon completion. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | Marketable securities consisted of the following at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (in thousands) Deferred compensation plan assets $ 25,959 $ 23,547 Certificates of deposit 252,830 — Total marketable securities $ 278,789 $ 23,547 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Assets, Net | Prepaid expenses and other assets, net consisted of the following at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (in thousands) Furniture, fixtures and other long-lived assets, net $ 37,940 $ 41,538 Prepaid expenses and deferred financing costs, net 17,558 11,364 Other assets 4,643 9,527 Total prepaid expenses and other assets, net $ 60,141 $ 62,429 |
Secured and Unsecured Debt of_2
Secured and Unsecured Debt of the Operating Partnership (Tables) - Kilroy Realty L.P. | 9 Months Ended |
Sep. 30, 2023 | |
Debt Instrument [Line Items] | |
Schedule of Unsecured Revolving Credit Facility | The following table summarizes the balance and terms of our unsecured revolving credit facility as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (in thousands) Outstanding borrowings $ — $ — Remaining borrowing capacity 1,100,000 1,100,000 Total borrowing capacity (1) $ 1,100,000 $ 1,100,000 Interest rate (2) 6.31 % 5.20 % Facility fee-annual rate (3) 0.200% Maturity date (4) July 31, 2025 ________________________ (1) Total borrowing capacity is reduced by the amount of our outstanding letters of credit which total approximately $5.2 million as of the date of this report. We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $500.0 million under an accordion feature pursuant to the terms of the unsecured revolving credit facility. (2) Our unsecured revolving credit facility interest rate was calculated using a contractual rate of Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment of 0.10% (“Adjusted SOFR”) and a margin of 0.900% based on our credit rating as of September 30, 2023 and December 31, 2022. We may be entitled to a temporary 0.01% reduction in the interest rate provided we meet certain sustainability goals with respect to the ongoing reduction of greenhouse gas emissions. (3) 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 September 30, 2023 and December 31, 2022, $3.7 million and $5.3 million of unamortized deferred financing costs, respectively, which are included in prepaid expenses and other assets, net on our consolidated balance sheets, remained to be amortized through the maturity date of our unsecured revolving credit facility. (4) The maturity date may be extended by two six-month periods, at the Company’s option. The following table summarizes the balance and terms of our unsecured term loan facility as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (in thousands) Outstanding borrowings $ 520,000 $ 200,000 Remaining borrowing capacity — 200,000 Total borrowing capacity (1) $ 520,000 $ 400,000 Interest rate (2) 6.37 % 5.23 % Undrawn facility fee-annual rate (3) 0.200% Maturity date (4) October 3, 2024 ____________________ (1) We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $130.0 million and $100.0 million as of September 30, 2023 and December 31, 2022, respectively, under an accordion feature pursuant to the terms of the unsecured term loan facility. (2) Our unsecured term loan facility interest rate was calculated using a contractual rate of Adjusted SOFR plus a margin of 0.950% based on our credit rating as of September 30, 2023 and December 31, 2022. (3) Our undrawn facility fee is paid on a quarterly basis and is calculated based on the remaining borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of September 30, 2023 and December 31, 2022, $3.1 million and $4.5 million, respectively, of unamortized deferred financing costs remained to be amortized through the maturity date of our unsecured term loan facility. (4) The maturity date may be extended by two twelve-month periods, at the Company’s option. |
Schedule of Debt Maturities | The following table summarizes the stated debt maturities and scheduled amortization payments for all outstanding debt as of September 30, 2023: Year (in thousands) Remaining 2023 $ 1,465 2024 (1) 936,716 2025 406,246 2026 401,317 2027 249,125 2028 400,000 Thereafter 2,575,000 Total aggregate principal value (2) $ 4,969,869 ________________________ (1) Includes the $520.0 million outstanding as of September 30, 2023 on the unsecured term loan facility maturing on October 3, 2024, for which the Company has two twelve-month extension options. |
Schedule of Capitalized Interest and Loan Fees | The following table sets forth gross interest expense, including debt discount and deferred financing cost amortization, net of capitalized interest, for the three and nine months ended September 30, 2023 and 2022. 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Gross interest expense $ 49,893 $ 39,659 $ 139,148 $ 118,995 Capitalized interest and deferred financing costs (20,056) (19,677) (57,257) (58,267) Interest expense $ 29,837 $ 19,982 $ 81,891 $ 60,728 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Payment Award, Restricted Stock Units, Valuation Assumptions | The fair value of the portion of the award subject to the Market Condition was calculated using a Monte Carlo simulation pricing model based on the assumptions in the table below, which resulted in the following grant date fair value per share. Fair Value Assumptions Valuation date February 6, 2023 Fair value per share on valuation date (1) $40.10 Expected share price volatility 35.0% Risk-free interest rate 4.12% ________________________ (1) For one participant, the fair value per share on the valuation date for their 2023 Performance-Based RSUs is $40.43. |
Rental Income and Future Mini_2
Rental Income and Future Minimum Rent (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Rental Income | The table below sets forth the allocation of rental income between fixed and variable payments and net collectability reversals or recoveries for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Fixed lease payments $ 232,090 $ 231,747 $ 713,254 $ 685,797 Variable lease payments 49,232 42,503 142,771 118,724 Net collectability reversals (1) (641) (1,704) (3,931) (191) Total rental income $ 280,681 $ 272,546 $ 852,094 $ 804,330 _____________________ |
Schedule of Future Contractual Minimum Rent Under Operating Lease | Future contractual minimum rent under operating leases, which includes amounts contractually due from leases that are on a cash basis of reporting due to creditworthiness considerations, as of September 30, 2023 for future periods is summarized as follows: Year Ending (in thousands) Remaining 2023 $ 202,244 2024 805,187 2025 797,014 2026 746,466 2027 681,760 2028 636,557 Thereafter 1,924,042 Total (1) $ 5,793,270 _____________________ (1) Excludes residential leases and leases with a term of one year or less. |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of the Company's Deferred Compensation Plan Assets | The following table sets forth the fair value of our deferred compensation plan assets as of September 30, 2023 and December 31, 2022: Fair Value (Level 1) (1) September 30, 2023 December 31, 2022 Description (in thousands) Deferred compensation plan assets (2) $ 25,959 $ 23,547 ________________________ (1) Based on quoted prices in active markets for identical securities. (2) The deferred compensation plan assets are held in a limited rabbi trust. |
Schedule of Carrying Value and Fair Value of Other Financial Instruments | The following table sets forth the carrying value and the fair value of our other financial instruments as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Carrying Fair (1) Carrying Fair (1) (in thousands) Assets Certificates of deposit (2) $ 252,830 $ 252,830 $ — $ — Liabilities Secured debt, net $ 604,480 $ 565,256 $ 242,938 $ 225,847 Unsecured debt, net $ 4,330,326 $ 3,741,167 $ 4,020,058 $ 3,500,420 ________________________ (1) Fair value calculated using Level 2 inputs, which are based on model-derived valuations in which significant inputs and significant value drivers are observable in active markets. (2) The carrying value of the certificates of deposit approximate their fair values due to their short-term maturities. The Company intends to hold the certificates of deposit until their maturity dates in January and April 2024. |
Net Income Available to Commo_3
Net Income Available to Common Stockholders Per Share of the Company (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income 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 nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except share and per share amounts) Numerator: Net income available to common stockholders $ 52,762 $ 79,757 $ 164,957 $ 179,990 Allocation to participating securities (1) (269) (287) (959) (980) Numerator for basic and diluted net income available to common stockholders $ 52,493 $ 79,470 $ 163,998 $ 179,010 Denominator: Basic weighted average vested shares outstanding 117,184,609 116,872,953 117,133,420 116,782,621 Effect of dilutive securities 310,637 369,458 277,975 380,528 Diluted weighted average vested shares and common stock equivalents outstanding 117,495,246 117,242,411 117,411,395 117,163,149 Basic earnings per share: Net income available to common stockholders per share $ 0.45 $ 0.68 $ 1.40 $ 1.53 Diluted earnings per share: Net income available to common stockholders per share $ 0.45 $ 0.68 $ 1.40 $ 1.53 ________________________ |
Net Income Available to Commo_4
Net Income Available to Common Unitholders Per Unit of the Operating Partnership (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Net Income Available To Common Unitholders [Line Items] | |
Schedule of Net Income 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 nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except share and per share amounts) Numerator: Net income available to common stockholders $ 52,762 $ 79,757 $ 164,957 $ 179,990 Allocation to participating securities (1) (269) (287) (959) (980) Numerator for basic and diluted net income available to common stockholders $ 52,493 $ 79,470 $ 163,998 $ 179,010 Denominator: Basic weighted average vested shares outstanding 117,184,609 116,872,953 117,133,420 116,782,621 Effect of dilutive securities 310,637 369,458 277,975 380,528 Diluted weighted average vested shares and common stock equivalents outstanding 117,495,246 117,242,411 117,411,395 117,163,149 Basic earnings per share: Net income available to common stockholders per share $ 0.45 $ 0.68 $ 1.40 $ 1.53 Diluted earnings per share: Net income available to common stockholders per share $ 0.45 $ 0.68 $ 1.40 $ 1.53 ________________________ |
Kilroy Realty L.P. | |
Net Income Available To Common Unitholders [Line Items] | |
Schedule of Net Income Available to Common Stockholders | 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 nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except unit and per unit amounts) Numerator: Net income available to common unitholders $ 53,277 $ 80,421 $ 166,569 $ 181,685 Allocation to participating securities (1) (269) (287) (959) (980) Numerator for basic and diluted net income available to common unitholders $ 53,008 $ 80,134 $ 165,610 $ 180,705 Denominator: Basic weighted average vested units outstanding 118,335,183 118,023,527 118,283,994 117,933,195 Effect of dilutive securities 310,637 369,458 277,975 380,528 Diluted weighted average vested units and common unit equivalents outstanding 118,645,820 118,392,985 118,561,969 118,313,723 Basic earnings per unit: Net income available to common unitholders per unit $ 0.45 $ 0.68 $ 1.40 $ 1.53 Diluted earnings per unit: Net income available to common unitholders per unit $ 0.45 $ 0.68 $ 1.40 $ 1.53 ________________________ |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information of the Company (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flows | Supplemental cash flow information follows (in thousands): Nine Months Ended September 30, 2023 2022 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $53,637 and $55,080 as of September 30, 2023 and 2022, respectively $ 60,528 $ 43,838 Cash paid for amounts included in the measurement of ground lease liabilities $ 4,939 $ 4,719 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development and redevelopment properties $ 98,631 $ 97,014 Tenant improvements funded directly by tenants $ 6,026 $ 7,397 NON-CASH FINANCING TRANSACTIONS: Accrual of dividends and distributions payable to common stockholders and common unitholders (Note 14) $ 64,423 $ 64,271 |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the nine months ended September 30, 2023 and 2022. Nine Months Ended September 30, 2023 2022 (in thousands) RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 347,379 $ 414,077 Restricted cash at beginning of period — 13,006 Cash and cash equivalents and restricted cash at beginning of period $ 347,379 $ 427,083 Cash and cash equivalents at end of period $ 618,794 $ 249,981 Restricted cash at end of period — 13,009 Cash and cash equivalents and restricted cash at end of period $ 618,794 $ 262,990 |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the nine months ended September 30, 2023 and 2022. Nine Months Ended September 30, 2023 2022 (in thousands) RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 347,379 $ 414,077 Restricted cash at beginning of period — 13,006 Cash and cash equivalents and restricted cash at beginning of period $ 347,379 $ 427,083 Cash and cash equivalents at end of period $ 618,794 $ 249,981 Restricted cash at end of period — 13,009 Cash and cash equivalents and restricted cash at end of period $ 618,794 $ 262,990 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information of the Operating Partnership (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Significant Noncash Transactions [Line Items] | |
Schedule of Supplemental Cash Flows | Supplemental cash flow information follows (in thousands): Nine Months Ended September 30, 2023 2022 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $53,637 and $55,080 as of September 30, 2023 and 2022, respectively $ 60,528 $ 43,838 Cash paid for amounts included in the measurement of ground lease liabilities $ 4,939 $ 4,719 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development and redevelopment properties $ 98,631 $ 97,014 Tenant improvements funded directly by tenants $ 6,026 $ 7,397 NON-CASH FINANCING TRANSACTIONS: Accrual of dividends and distributions payable to common stockholders and common unitholders (Note 14) $ 64,423 $ 64,271 |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the nine months ended September 30, 2023 and 2022. Nine Months Ended September 30, 2023 2022 (in thousands) RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 347,379 $ 414,077 Restricted cash at beginning of period — 13,006 Cash and cash equivalents and restricted cash at beginning of period $ 347,379 $ 427,083 Cash and cash equivalents at end of period $ 618,794 $ 249,981 Restricted cash at end of period — 13,009 Cash and cash equivalents and restricted cash at end of period $ 618,794 $ 262,990 |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the nine months ended September 30, 2023 and 2022. Nine Months Ended September 30, 2023 2022 (in thousands) RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 347,379 $ 414,077 Restricted cash at beginning of period — 13,006 Cash and cash equivalents and restricted cash at beginning of period $ 347,379 $ 427,083 Cash and cash equivalents at end of period $ 618,794 $ 249,981 Restricted cash at end of period — 13,009 Cash and cash equivalents and restricted cash at end of period $ 618,794 $ 262,990 |
Kilroy Realty L.P. | |
Other Significant Noncash Transactions [Line Items] | |
Schedule of Supplemental Cash Flows | Supplemental cash flow information follows (in thousands): Nine Months Ended September 30, 2023 2022 SUPPLEMENTAL CASH FLOWS INFORMATION: Cash paid for interest, net of capitalized interest of $53,637 and $55,080 as of September 30, 2023 and 2022, respectively $ 60,528 $ 43,838 Cash paid for amounts included in the measurement of ground lease liabilities $ 4,939 $ 4,719 NON-CASH INVESTING TRANSACTIONS: Accrual for expenditures for operating properties and development and redevelopment properties $ 98,631 $ 97,014 Tenant improvements funded directly by tenants $ 6,026 $ 7,397 NON-CASH FINANCING TRANSACTIONS: Accrual of distributions payable to common unitholders (Note 14) $ 64,423 $ 64,271 |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the nine months ended September 30, 2023 and 2022. Nine Months Ended September 30, 2023 2022 (in thousands) RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 347,379 $ 414,077 Restricted cash at beginning of period — 13,006 Cash and cash equivalents and restricted cash at beginning of period $ 347,379 $ 427,083 Cash and cash equivalents at end of period $ 618,794 $ 249,981 Restricted cash at end of period — 13,009 Cash and cash equivalents and restricted cash at end of period $ 618,794 $ 262,990 |
Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following is a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the nine months ended September 30, 2023 and 2022. Nine Months Ended September 30, 2023 2022 (in thousands) RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period $ 347,379 $ 414,077 Restricted cash at beginning of period — 13,006 Cash and cash equivalents and restricted cash at beginning of period $ 347,379 $ 427,083 Cash and cash equivalents at end of period $ 618,794 $ 249,981 Restricted cash at end of period — 13,009 Cash and cash equivalents and restricted cash at end of period $ 618,794 $ 262,990 |
Organization, Ownership and B_4
Organization, Ownership and Basis of Presentation - Operating Properties (Details) | 9 Months Ended |
Sep. 30, 2023 ft² tenant development_project property building | |
Stabilized Office Properties | |
Real Estate Properties [Line Items] | |
Number of Buildings | building | 120 |
Rentable Square Feet | 16,285,153 |
Number of Tenants | tenant | 401 |
Percentage Occupied | 86.20% |
Percentage Leased | 87.50% |
Stabilized Residential Properties | |
Real Estate Properties [Line Items] | |
Number of Projects | property | 3 |
Number of Units | property | 1,001 |
2023 Average Occupancy | 92.90% |
In-process development projects - tenant improvement | |
Real Estate Properties [Line Items] | |
Rentable Square Feet | 734,000 |
Number of Projects | development_project | 1 |
In-process development projects - under construction | |
Real Estate Properties [Line Items] | |
Rentable Square Feet | 875,000 |
Number of Projects | development_project | 1 |
In-process redevelopment projects - under construction | |
Real Estate Properties [Line Items] | |
Rentable Square Feet | 100,000 |
Number of Projects | development_project | 2 |
Organization, Ownership and B_5
Organization, Ownership and Basis of Presentation - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 USD ($) a ft² property development_project property_partnership variableInterestEntity development_site building | Sep. 30, 2022 | Dec. 31, 2022 USD ($) variableInterestEntity | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Lease-up properties occupancy percentage | 95% | ||
Lease-up properties occupancy duration | 1 year | ||
Assets | $ 11,471,121 | $ 10,796,987 | |
Liabilities | 5,803,596 | 5,122,026 | |
Noncontrolling interest in VIE | $ 180,253 | $ 184,390 | |
Variable Interest Entity, Primary Beneficiary | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of VIEs | variableInterestEntity | 2 | 2 | |
Assets | $ 423,900 | $ 438,700 | |
Liabilities | 26,900 | 31,500 | |
Variable Interest Entity, Primary Beneficiary | Real Estate Investment | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Assets | $ 353,200 | 362,700 | |
San Francisco, California | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of properties | property | 1 | ||
101 First LLC and 303 Second LLC | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Company owned general partnership interest | 56% | ||
101 First LLC and 303 Second LLC | Variable Interest Entity, Primary Beneficiary | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Noncontrolling interest in VIE | $ 175,500 | $ 179,400 | |
Redwood LLC | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Company owned general partnership interest | 93% | ||
Redwood LLC | Redwood City, California | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of properties | property | 2 | ||
Operating Partnership | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Ownership interest (percent) | 99% | 99% | 99% |
Operating Partnership | Non-Affiliated Investors and Certain Executive Officer and Directors | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Ownership interest (percent) | 1% | 1% | 1% |
Development Project - Stabilized Office Property | San Diego, California | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of properties | development_project | 1 | ||
Number of buildings | building | 1 | ||
Rentable square feet | ft² | 70,616 | ||
Future Development Site | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of future development sites | development_site | 8 | ||
Area of undeveloped land | a | 64 | ||
Stabilized Office Properties | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of buildings | building | 120 | ||
Rentable square feet | ft² | 16,285,153 | ||
Stabilized Office Properties | Washington | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of properties | property | 10 | ||
Future Development Project | Washington | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of properties | development_site | 1 | ||
Future Development Project | Texas | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of properties | development_site | 1 | ||
Development Project In The Tenant Improvement Phase | Texas | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of properties | development_site | 1 | ||
Properties And Development Projects | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Property ownership percentage | 100% | ||
Office Properties Owned By Consolidated Property Partnerships | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of properties | property | 4 | ||
Consolidated Property Partnerships | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of property partnerships | property_partnership | 3 | ||
Consolidated Property Partnerships Owning Office Properties Through REITs | 101 First LLC and 303 Second LLC | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of property partnerships | property_partnership | 2 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Deferred compensation plan assets | $ 25,959 | $ 23,547 |
Certificates of deposit | 252,830 | 0 |
Total marketable securities | $ 278,789 | $ 23,547 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Furniture, fixtures and other long-lived assets, net | $ 37,940 | $ 41,538 |
Prepaid expenses and deferred financing costs, net | 17,558 | 11,364 |
Other assets | 4,643 | 9,527 |
Total marketable securities | $ 60,141 | $ 62,429 |
Secured and Unsecured Debt of_3
Secured and Unsecured Debt of the Operating Partnership - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jul. 31, 2023 USD ($) ft² office_building apartment_unit | Mar. 31, 2023 USD ($) | Jan. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||||
Repurchases of unsecured debt | $ 14,290,000 | $ 0 | |||||
Remaining principal balance | $ 4,330,326,000 | 4,330,326,000 | $ 4,020,058,000 | ||||
Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Term loan facility, accordion feature for additional term loan commitments | $ 100,000,000 | ||||||
Term loan facility, maximum borrowing capacity | $ 650,000,000 | ||||||
Term loan facility, additional borrowing capacity | $ 20,000,000 | ||||||
Unsecured debt, net | |||||||
Debt Instrument [Line Items] | |||||||
Remaining principal balance | 410,700,000 | 410,700,000 | |||||
Unsecured debt, net | 3.45% Unsecured Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured senior note | 425,000,000 | $ 425,000,000 | |||||
Repurchases of unsecured debt | $ 14,300,000 | ||||||
Stated interest rate on debt (percent) | 3.45% | 3.45% | |||||
Kilroy Realty L.P. | |||||||
Debt Instrument [Line Items] | |||||||
Remaining principal balance | $ 4,330,326,000 | $ 4,330,326,000 | 4,020,058,000 | ||||
Kilroy Realty L.P. | Revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Term loan facility, maximum borrowing capacity | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | ||||
Kilroy Realty L.P. | Term Loan Facility | Unsecured Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Term loan facility, maximum borrowing capacity | 520,000,000 | 520,000,000 | $ 400,000,000 | ||||
Kilroy Realty L.P. | Mortgages | Secured Mortgage Loan Transaction | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt | $ 375,000,000 | ||||||
Number of office buildings | office_building | 2 | ||||||
Number of apartment units | apartment_unit | 608 | ||||||
Square feet of retail space | ft² | 95,000 | ||||||
Percentage bearing fixed interest rate | 5.90% | ||||||
Kilroy Realty L.P. | Unsecured debt, net | Unsecured Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt | $ 520,000,000 | $ 520,000,000 |
Secured and Unsecured Debt of_4
Secured and Unsecured Debt of the Operating Partnership - Unsecured Senior Notes, Unsecured Revolving Credit Facility and Term Loan Facility (Details) - Kilroy Realty L.P. | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) extension_option | Dec. 31, 2022 USD ($) extension_option | |
Revolving Credit Facility and Term Loan Facility | Adjusted SOFR | ||
Terms of the Unsecured Revolving Credit Facility and Term Loan Facility | ||
Variable rate (percent) | 0.10% | 0.10% |
Revolving Credit Facility | ||
Terms of the Unsecured Revolving Credit Facility and Term Loan Facility | ||
Outstanding borrowings | $ 0 | $ 0 |
Remaining borrowing capacity | 1,100,000,000 | 1,100,000,000 |
Total borrowing capacity | $ 1,100,000,000 | $ 1,100,000,000 |
Interest rate (percent) | 6.31% | 5.20% |
Facility fee-annual rate (percent) | 0.20% | 0.20% |
Outstanding letters of credit | $ 5,200,000 | |
Contingent additional borrowings | $ 500,000,000 | $ 500,000,000 |
Reduction interest rate | 0.01% | 0.01% |
Unamortized deferred financing costs | $ 3,700,000 | $ 5,300,000 |
Number of extension options | extension_option | 2 | 2 |
Extension period (in months) | 6 months | 6 months |
Revolving Credit Facility | SOFR | ||
Terms of the Unsecured Revolving Credit Facility and Term Loan Facility | ||
Variable rate (percent) | 0.90% | 0.90% |
Term Loan Facility | Unsecured Term Loan Facility | ||
Terms of the Unsecured Revolving Credit Facility and Term Loan Facility | ||
Outstanding borrowings | $ 520,000,000 | $ 200,000,000 |
Remaining borrowing capacity | 0 | 200,000,000 |
Total borrowing capacity | $ 520,000,000 | $ 400,000,000 |
Interest rate (percent) | 6.37% | 5.23% |
Facility fee-annual rate (percent) | 0.20% | 0.20% |
Contingent additional borrowings | $ 130,000,000 | $ 100,000,000 |
Unamortized deferred financing costs | $ 3,100,000 | $ 4,500,000 |
Number of extension options | extension_option | 2 | |
Extension period (in months) | 12 months | |
Term Loan Facility | SOFR | Unsecured Term Loan Facility | ||
Terms of the Unsecured Revolving Credit Facility and Term Loan Facility | ||
Variable rate (percent) | 0.95% | 0.95% |
Unsecured debt, net | Unsecured Term Loan Facility | ||
Terms of the Unsecured Revolving Credit Facility and Term Loan Facility | ||
Number of extension options | extension_option | 2 | |
Extension period (in months) | 12 months |
Secured and Unsecured Debt of_5
Secured and Unsecured Debt of the Operating Partnership - Debt Maturities (Details) - Kilroy Realty L.P. $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) extension_option | |
Stated debt maturities and scheduled amortization payments | |
Remaining 2023 | $ 1,465 |
2024 | 936,716 |
2025 | 406,246 |
2026 | 401,317 |
2027 | 249,125 |
2028 | 400,000 |
Thereafter | 2,575,000 |
Total aggregate principal value | 4,969,869 |
Unsecured Debt | Unsecured Term Loan Facility | |
Stated debt maturities and scheduled amortization payments | |
Long-term debt | $ 520,000 |
Number of extension options | extension_option | 2 |
Extension period (in months) | 12 months |
Unsecured Senior Notes | |
Stated debt maturities and scheduled amortization payments | |
Unamortized debt issuance expense | $ 29,500 |
Senior Notes | |
Stated debt maturities and scheduled amortization payments | |
Debt issuance discount | $ 5,600 |
Secured and Unsecured Debt of_6
Secured and Unsecured Debt of the Operating Partnership - Capitalized Interest and Loan Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Capitalized Interest and Loan Fees [Line Items] | ||||
Interest expense | $ 29,837 | $ 19,982 | $ 81,891 | $ 60,728 |
Kilroy Realty L.P. | ||||
Capitalized Interest and Loan Fees [Line Items] | ||||
Gross interest expense | 49,893 | 39,659 | 139,148 | 118,995 |
Capitalized interest and deferred financing costs | (20,056) | (19,677) | (57,257) | (58,267) |
Interest expense | $ 29,837 | $ 19,982 | $ 81,891 | $ 60,728 |
Noncontrolling Interests on t_2
Noncontrolling Interests on the Company's Consolidated Financial Statements (Details) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 USD ($) trading_day $ / shares shares | Sep. 30, 2022 shares | Dec. 31, 2022 USD ($) trading_day $ / shares shares | |
Noncontrolling Interest [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Number of trading days | trading_day | 10 | 10 | |
Aggregate value upon redemption of outstanding noncontrolling common units | $ | $ 37.8 | $ 44.7 | |
Non-Affiliated Investors and Certain Executive Officer and Directors | Common Units | |||
Noncontrolling Interest [Line Items] | |||
Common units outstanding held by common limited partners (in shares) | 1,150,574 | 1,150,574 | 1,150,574 |
Kilroy Realty L.P. | Common Units | |||
Noncontrolling Interest [Line Items] | |||
Conversion ratio | 1 | 1 | |
Kilroy Realty L.P. | Common Units | |||
Noncontrolling Interest [Line Items] | |||
Common units outstanding held by common limited partners (in shares) | 1,150,574 | 1,150,574 | |
Operating Partnership | |||
Noncontrolling Interest [Line Items] | |||
Ownership interest (percent) | 99% | 99% | 99% |
Operating Partnership | Non-Affiliated Investors and Certain Executive Officer and Directors | |||
Noncontrolling Interest [Line Items] | |||
Ownership interest (percent) | 1% | 1% | 1% |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 06, 2023 USD ($) installment $ / shares shares | Feb. 28, 2023 shares | Sep. 30, 2023 USD ($) compensation_plan shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) compensation_plan shares | Sep. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share-based incentive compensation plans | compensation_plan | 1 | 1 | ||||
Effective registration shares (in shares) | shares | 12,600,000 | 12,600,000 | ||||
Number of shares available for grant (in shares) | shares | 2,900,000 | 2,900,000 | ||||
Share-based compensation expense | $ 12.3 | $ 10.3 | $ 33.4 | $ 26.5 | ||
Share-based compensation expense capitalized | 1.7 | $ 1.9 | 5 | $ 5 | ||
Share-based compensation not yet recognized | $ 28.5 | $ 28.5 | ||||
Share-based compensation not yet recognized period of recognition | 1 year 4 months 24 days | |||||
2022 Performance Based RSUs, Debt to EBITDA Performance Condition | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance-based RSU, achievement target, all other participants, percent | 150% | 150% | ||||
Performance-based RSU, achievement target, CEO, percent | 175% | 175% | ||||
Performance-Based RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted in period (in shares) | shares | 300,007 | |||||
Time-Based RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted in period (in shares) | shares | 217,059 | |||||
Number of installments | installment | 3 | |||||
Right to receive number of shares (in shares) | shares | 1 | |||||
Time-Based Restricted Stock Units (RSUs), Grant | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value RSUs granted | $ 8.6 | |||||
Share price (in dollars per share) | $ / shares | $ 39.65 | |||||
2021 Performance Based RSUs, Debt to EBITDA Ratio Performance Condition | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance-based RSU, achievement target, all other participants, percent | 150% | 150% | ||||
Performance-based RSU, achievement target, CEO, percent | 175% | 175% | ||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted in period (in shares) | shares | 517,066 | |||||
2023 Performance-Based RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Vesting, achievement of pre-set FFO per share goals, percentage of RSUs | 100% | |||||
Vesting, Average debt to EBIDTA ratio, percentage of RSUs | 50% | |||||
Vesting, Market measure, percentage of RSUs | 50% | |||||
Share-based compensation expense | $ 10.2 | |||||
Number of shares issuable per RSU | 1 | |||||
Fair value RSUs granted | $ 12 | |||||
2023 Performance Based RSUs, FFO Performance Condition | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance-based RSU, achievement target, all other participants, percent | 150% | |||||
Performance-based RSU, achievement target, CEO, percent | 175% | |||||
2023 Performance Based RSUs, Debt to EBITDA Ratio Performance Condition | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance-based RSU, achievement target, all other participants, percent | 100% | |||||
Performance-based RSU, achievement target, CEO, percent | 175% | |||||
CEO and Former President | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock compensation expense related to accelerated | $ 8 | $ 21.2 |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value Assumptions (Details) - 2023 Performance-Based RSUs | Feb. 06, 2023 $ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per share on valuation date (in dollars per share) | $ 40.10 |
Expected share price volatility | 35% |
Risk-free interest rate | 4.12% |
One Participant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per share on valuation date (in dollars per share) | $ 40.43 |
Rental Income and Future Mini_3
Rental Income and Future Minimum Rent - Rental income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Fixed lease payments | $ 232,090 | $ 231,747 | $ 713,254 | $ 685,797 |
Variable lease payments | 49,232 | 42,503 | 142,771 | 118,724 |
Net collectability reversals | (641) | (1,704) | (3,931) | (191) |
Total rental income | $ 280,681 | $ 272,546 | $ 852,094 | $ 804,330 |
Rental Income and Future Mini_4
Rental Income and Future Minimum Rent - Future Contractual Minimum Rent (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Future contractual minimum rent under operating lease | |
Remaining 2023 | $ 202,244 |
2024 | 805,187 |
2025 | 797,014 |
2026 | 746,466 |
2027 | 681,760 |
2028 | 636,557 |
Thereafter | 1,924,042 |
Total | $ 5,793,270 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Long-term Purchase Commitment [Line Items] | |
Commitments for contracts and executed leases directly related to operating and development properties | $ 396.5 |
Environmental Matters | |
Long-term Purchase Commitment [Line Items] | |
Accrued environmental remediation liabilities | $ 77.8 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures - Assets and Liabilities Reported at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair value, Measurements, Recurring | Fair Value (Level 1) | ||
Assets and Liabilities Reported at Fair Value | ||
Deferred compensation plan assets | $ 25,959 | $ 23,547 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures - Financial Instruments Disclosed at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Value | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments, fair value | $ 252,830 | $ 0 |
Carrying Value | Secured debt, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt, net | 604,480 | 242,938 |
Carrying Value | Unsecured debt, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt, net | 4,330,326 | 4,020,058 |
Fair Value | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments, fair value | 252,830 | 0 |
Fair Value | Secured debt, net | Fair value (level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt, net | 565,256 | 225,847 |
Fair Value | Unsecured debt, net | Fair value (level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt, net | $ 3,741,167 | $ 3,500,420 |
Net Income Available to Commo_5
Net Income Available to Common Stockholders Per Share of the Company (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net income available to common stockholders | $ 52,762 | $ 79,757 | $ 164,957 | $ 179,990 |
Allocation to participating securities | (269) | (287) | (959) | (980) |
Numerator for basic and diluted net income available to common stockholders | $ 52,493 | $ 79,470 | $ 163,998 | $ 179,010 |
Denominator: | ||||
Basic weighted average vested shares outstanding (in shares) | 117,184,609 | 116,872,953 | 117,133,420 | 116,782,621 |
Effect of dilutive securities (in shares) | 310,637 | 369,458 | 277,975 | 380,528 |
Diluted weighted average vested shares and common stock/ unit equivalents outstanding (in shares) | 117,495,246 | 117,242,411 | 117,411,395 | 117,163,149 |
Basic earnings per share: | ||||
Net income available to common stockholders per share (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Diluted earnings per share: | ||||
Net income available to common stockholders per share (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Net Income Available to Commo_6
Net Income Available to Common Unitholders Per Unit of the Operating Partnership (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net income available to common unitholders | $ 52,762 | $ 79,757 | $ 164,957 | $ 179,990 |
Allocation to participating securities | (269) | (287) | (959) | (980) |
Numerator for basic and diluted net income available to common stockholders | $ 52,493 | $ 79,470 | $ 163,998 | $ 179,010 |
Denominator: | ||||
Basic weighted average vested units outstanding (in shares) | 117,184,609 | 116,872,953 | 117,133,420 | 116,782,621 |
Effect of dilutive securities (in shares) | 310,637 | 369,458 | 277,975 | 380,528 |
Diluted weighted average vested shares and common stock/ unit equivalents outstanding (in shares) | 117,495,246 | 117,242,411 | 117,411,395 | 117,163,149 |
Basic earnings per unit: | ||||
Net income available to common unitholders per unit (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Diluted earnings per unit: | ||||
Net income available to common unitholders per unit (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Kilroy Realty L.P. | ||||
Numerator: | ||||
Net income available to common unitholders | $ 53,277 | $ 80,421 | $ 166,569 | $ 181,685 |
Allocation to participating securities | (269) | (287) | (959) | (980) |
Numerator for basic and diluted net income available to common stockholders | $ 53,008 | $ 80,134 | $ 165,610 | $ 180,705 |
Denominator: | ||||
Basic weighted average vested units outstanding (in shares) | 118,335,183 | 118,023,527 | 118,283,994 | 117,933,195 |
Effect of dilutive securities (in shares) | 310,637 | 369,458 | 277,975 | 380,528 |
Diluted weighted average vested shares and common stock/ unit equivalents outstanding (in shares) | 118,645,820 | 118,392,985 | 118,561,969 | 118,313,723 |
Basic earnings per unit: | ||||
Net income available to common unitholders per unit (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Diluted earnings per unit: | ||||
Net income available to common unitholders per unit (in dollars per share) | $ 0.45 | $ 0.68 | $ 1.40 | $ 1.53 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information of the Company - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Capitalized interest | $ 53,637 | $ 55,080 |
Cash paid for interest, net of capitalized interest of $53,637 and $55,080 as of September 30, 2023 and 2022, respectively | 60,528 | 43,838 |
Cash paid for amounts included in the measurement of ground lease liabilities | 4,939 | 4,719 |
NON-CASH INVESTING TRANSACTIONS: | ||
Accrual for expenditures for operating properties and development and redevelopment properties | 98,631 | 97,014 |
Tenant improvements funded directly by tenants | 6,026 | 7,397 |
NON-CASH FINANCING TRANSACTIONS: | ||
Accrual of dividends and distributions payable to common stockholders and common unitholders (Note 14) | $ 64,423 | $ 64,271 |
Supplemental Cash Flow Inform_6
Supplemental Cash Flow Information of the Company - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | ||||
Cash and cash equivalents | $ 618,794 | $ 347,379 | $ 249,981 | $ 414,077 |
Restricted cash | 0 | 0 | 13,009 | 13,006 |
Cash and cash equivalents and restricted cash | $ 618,794 | $ 347,379 | $ 262,990 | $ 427,083 |
Supplemental Cash Flow Inform_7
Supplemental Cash Flow Information of the Operating Partnership - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Capitalized interest | $ 53,637 | $ 55,080 |
Cash paid for interest, net of capitalized interest of $53,637 and $55,080 as of September 30, 2023 and 2022, respectively | 60,528 | 43,838 |
Cash paid for amounts included in the measurement of ground lease liabilities | 4,939 | 4,719 |
NON-CASH INVESTING TRANSACTIONS: | ||
Accrual for expenditures for operating properties and development and redevelopment properties | 98,631 | 97,014 |
Tenant improvements funded directly by tenants | 6,026 | 7,397 |
NON-CASH FINANCING TRANSACTIONS: | ||
Accrual of distributions payable to common unitholders (Note 14) | 64,423 | 64,271 |
Kilroy Realty L.P. | ||
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Capitalized interest | 53,637 | 55,080 |
Cash paid for interest, net of capitalized interest of $53,637 and $55,080 as of September 30, 2023 and 2022, respectively | 60,528 | 43,838 |
Cash paid for amounts included in the measurement of ground lease liabilities | 4,939 | 4,719 |
NON-CASH INVESTING TRANSACTIONS: | ||
Accrual for expenditures for operating properties and development and redevelopment properties | 98,631 | 97,014 |
Tenant improvements funded directly by tenants | 6,026 | 7,397 |
NON-CASH FINANCING TRANSACTIONS: | ||
Accrual of distributions payable to common unitholders (Note 14) | $ 64,423 | $ 64,271 |
Supplemental Cash Flow Inform_8
Supplemental Cash Flow Information of the Operating Partnership - Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | ||||
Cash and cash equivalents | $ 618,794 | $ 347,379 | $ 249,981 | $ 414,077 |
Restricted cash | 0 | 0 | 13,009 | 13,006 |
Cash and cash equivalents and restricted cash | 618,794 | 347,379 | 262,990 | 427,083 |
Kilroy Realty L.P. | ||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | ||||
Cash and cash equivalents | 618,794 | 347,379 | 249,981 | 414,077 |
Restricted cash | 0 | 0 | 13,009 | 13,006 |
Cash and cash equivalents and restricted cash | $ 618,794 | $ 347,379 | $ 262,990 | $ 427,083 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Oct. 11, 2023 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Payment of dividends | $ 64.4 |