EX-99.2 3 dex992.txt PRESS RELEASE EXHIBIT 99.2 Contact: FOR RELEASE: Richard E. Moran Jr. April 30, 2001 Executive Vice President and Chief Financial Officer (310) 563-5533 or Tyler H. Rose Senior Vice President and Treasurer (310) 563-5531 KILROY REALTY CORPORATION REPORTS 9.1% INCREASE IN FIRST QUARTER FFO PER SHARE LOS ANGELES, April 30, 2001 - Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its first quarter ended March 31, 2001, with funds from operations (FFO) of $21.9 million, or $0.72 per share, up 9.1% on a per-share basis from $20.7 million, or $0.66 per share, in the first quarter of 2000. Net income in the first quarter was $6.4 million, or $0.24 per share, compared to $9.6 million, or $0.35 per share, in the year-earlier quarter. Revenues totaled $50.4 million, up from $43.8 million a year ago. All per-share amounts are presented on a diluted basis. KRC's occupancy rate on its 12.8 million square feet of stabilized properties at the end of the first quarter was 97%. The company is currently developing or is committed to develop approximately one million additional square feet of office space in Southern California, with completion dates scheduled through mid-2002. This committed development pipeline, representing a total investment of approximately $250 million, is currently 52% preleased. Some of the information presented in this release is forward-looking in nature within the meaning of the federal securities law. Although the information is based on the company's current best judgment, actual results, including the timing and total investment of the company's development projects, could vary from expectations stated here. Numerous factors will affect KRC's actual results, some of which are beyond the company's control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels, capital market conditions and risks detailed from time to time in the company's SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Kilroy Realty Corporation is a southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets in the coastal regions of California and Washington. Principal submarkets for KRC's current development projects include Calabasas, West Los Angeles, and coastal San Diego, where the company's total development pipeline is approximately $500 million. At March 31, 2001, the company owned 7.1 million square feet of commercial office space and 5.8 million square feet of industrial space. More information on Kilroy Realty can be found at www.kilroyrealty.com. --------------------- ###### KILROY REALTY CORPORATION SUMMARY QUARTERLY RESULTS ------------------------- (unaudited, in thousands, except per share data)
Three Months Three Months Ended Ended March 31, 2001 March 31, 2000 -------------- -------------- Revenues $50,367 $43,771 Net income available to common stockholders (1) $ 6,426 $ 9,578 Weighted average common shares outstanding - basic 26,713 27,228 Weighted average common shares outstanding - diluted 26,971 27,229 Net income per share of common stock - basic $ 0.24 $ 0.35 Net income per share of common stock - diluted $ 0.24 $ 0.35 Funds From Operations $21,876 $20,680 Weighted average common shares/units outstanding - basic (2) 30,225 31,130 Weighted average common shares/units outstanding - diluted (2) 30,484 31,130 Funds From Operations per common share/unit - basic (2) $ 0.72 $ 0.66 Funds From Operations per common share/unit - diluted (2) $ 0.72 $ 0.66 Common shares outstanding at end of period 26,975 26,223 Common partnership units outstanding at end of period 3,282 3,805 ------- ------- Total common shares and units outstanding at end of period 30,257 30,028 March 31, 2001 March 31, 2000 -------------- -------------- Occupancy rates: California 96.4% 96.8% Washington 100.0% 100.0% Arizona 100.0% 100.0% Nevada 100.0% 100.0% ------ ------ Weighted average total 96.6% 96.8% Total square feet of stabilized properties owned at end of period: Office 7,064 6,225 Industrial 5,768 6,432 ------ ------ Total 12,832 12,657
(1) Net income after minority interests. (2) Calculated based on weighted average shares outstanding assuming conversion of all common limited partnership units outstanding. KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS ----------------------------------------------------- (unaudited, in thousands)
March 31, December 31, 2001 2000 ---------- ------------- ASSETS ------ INVESTMENT IN REAL ESTATE: Land and improvements $ 272,013 $ 266,444 Buildings and improvements 1,106,079 1,054,995 Undeveloped land and construction in progress, net 181,674 162,633 Investment in unconsolidated real estate 12,405 ---------- ----------- Total investment in real estate 1,559,766 1,496,477 Accumulated depreciation and amortization (215,176) (205,332) ---------- ----------- Investment in real estate, net 1,344,590 1,291,145 Cash and cash equivalents 19,669 17,600 Restricted cash 6,662 35,014 Tenant receivables, net 28,695 32,521 Note receivable from related party - 33,274 Deferred financing and leasing costs, net 35,633 39,674 Prepaid expenses and other assets 9,226 7,941 ---------- ----------- TOTAL ASSETS $1,444,475 $1,457,169 ========== =========== LIABILITIES & STOCKHOLDERS' EQUITY ---------------------------------- LIABILITIES: Secured debt $ 440,541 $ 432,688 Unsecured line of credit 162,000 191,000 Unsecured term facility 100,000 100,000 Accounts payable and accrued expenses 39,752 33,911 Accrued distributions 14,523 13,601 Rents received in advance, tenant security deposits and deferred revenue 30,909 17,810 ---------- ----------- Total liabilities 787,725 789,010 ---------- ----------- MINORITY INTERESTS: 8.075% Series A Cumulative Redeemable Preferred unitholders 73,716 73,716 9.375% Series C Cumulative Redeemable Preferred unitholders 34,464 34,464 9.250% Series D Cumulative Redeemable Preferred unitholders 44,321 44,321 Common unitholders of the Operating Partnership 53,440 62,485 Minority interest in Development LLCs 11,707 11,748 ---------- ----------- Total minority interests 217,648 226,734 ---------- ----------- STOCKHOLDERS' EQUITY: Common stock 270 265 Additional paid-in capital 470,077 460,390 Distributions in excess of earnings (25,751) (19,230) Accumulated other comprehensive loss (5,494) ---------- ----------- Total stockholders' equity 439,102 441,425 ---------- ----------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $1,444,475 $1,457,169 ========== ===========
KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS --------------------------------------------------------------- (unaudited, in thousands, except par share data)
Three Months Three Months Ended Ended March 31, 2001 March 31, 2000 -------------- -------------- REVENUES: Rental income $ 44,379 $ 37,702 Tenant reimbursements 5,520 4,694 Interest income 436 294 Other income 32 1,081 ---------- --------- Total revenues 50,367 43,771 ---------- --------- EXPENSES: Property expenses 6,895 5,458 Real estate taxes 3,635 3,387 General and administrative expenses 3,354 2,632 Ground leases 392 389 Interest expense 10,791 7,828 Depreciation and amortization 13,433 9,323 ---------- --------- Total expenses 38,500 29,017 ---------- --------- Income from operations 11,867 14,754 Net gains (losses) on dispositions of operating properties 305 (305) ---------- --------- Income before minority interests and cumulative effect of change in accounting principle 12,172 14,449 ---------- --------- Minority interests: Distributions on Cumulative Redeemable Preferred units (3,375) (3,375) Minority interest in earnings of Operating Partnership (845) (1,372) Minority interest in earnings of Development LLCs (134) (124) ---------- --------- Total minority interests (4,354) (4,871) ---------- --------- Net income before cumulative effect of change in accounting principle 7,818 9,578 Cumulative effect of change in accounting principle (1,392) ---------- --------- Net income $ 6,426 $ 9,578 ========== ========= Weighted average shares outstanding - basic 26,713 27,228 Weighted average shares outstanding - diluted 26,971 27,229 Income per common share - basic $ 0.24 $ 0.35 ========== ========= Income per common share - diluted $ 0.24 $ 0.35 ========== =========
KILROY REALTY CORPORATION FUNDS FROM OPERATIONS --------------------- (unaudited, in thousands, except per share data)
Three Months Three Months Ended Ended March 31, 2001 March 31, 2000 -------------- -------------- Net income $ 6,426 $ 9,578 Adjustments: Minority interest in earnings of Operating Partnership 845 1,372 Depreciation and amortization 12,970 9,323 Net (gains) losses on dispositions of operating properties (305) 305 Cumulative effect of change in accounting principle 1,392 Non-cash amortization of restricted stock grants 548 102 ------- ------- Funds From Operations $21,876 $20,680 ======= ======= Weighted average common shares/units outstanding-basic 30,225 31,130 Weighted average common shares/units outstanding-diluted 30,484 31,130 Funds From Operations per common share/unit-basic $ 0.72 $ 0.66 ======= ======= Funds From Operations per common share/unit-diluted $ 0.72 $ 0.66 ======= =======
KILROY REALTY CORPORATION FUNDS AVAILABLE FOR DISTRIBUTION -------------------------------- (unaudited, in thousands, except per share data)
Three Months Three Months Ended Ended March 31, 2001 March 31, 2000 -------------- -------------- Funds From Operations $21,876 $20,680 Adjustments: Amortization of deferred financing costs 381 206 Tenant improvements, leasing commissions and recurring capital expenditures (1,011) (904) Net effect of straight-line rents (1,714) (1,508) ------- ------- Funds Available for Distribution $19,532 $18,474 ======= ======= Funds Available for Distribution per common share/ unit-basic $ 0.65 $ 0.59 ======= ======= Funds Available for Distribution per common share/ unit-diluted $ 0.64 $ 0.59 ======= =======