Kilroy Realty Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)



☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-12675 (Kilroy Realty Corporation)

Commission File Number: 000-54005 (Kilroy Realty, L.P.)

KILROY REALTY CORPORATION

KILROY REALTY, L.P.

(Exact name of registrant as specified in its charter)




Kilroy Realty Corporation	Maryland	95-4598246
	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Kilroy Realty, L.P.	Delaware	95-4612685
	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

12200 W. Olympic Boulevard, Suite 200, Los Angeles, California, 90064

(Address of principal executive offices) (Zip Code)

(310) 481-8400



(Registrant's telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)



Securities registered pursuant to Section 12(b) of the Act:
Registrant	Title of each class	Name of each exchange on which registered	Ticker Symbol
Kilroy Realty Corporation	Common Stock, $.01 par value	New York Stock Exchange	KRC



Securities registered pursuant to Section 12(g) of the Act:
Registrant	Title of each class
Kilroy Realty, L.P.	Common Units Representing Limited Partnership Interests

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Kilroy Realty Corporation Yes ☑ No ☐

Kilroy Realty, L.P. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Kilroy Realty Corporation Yes ☑ No ☐

Kilroy Realty, L.P. Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Kilroy Realty Corporation

Large accelerated filer ☑ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Kilroy Realty, L.P.

Large accelerated filer ☐ Accelerated filer ☐

Non-accelerated filer ☑ Smaller reporting company ☐

Emerging growth company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Kilroy Realty Corporation Yes ☐ No ☑

Kilroy Realty, L.P. Yes ☐ No ☑

As of July 24, 2020, 115,179,550 shares of Kilroy Realty Corporation common stock, par value $.01 per share, were outstanding.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended June 30, 2020 of Kilroy Realty Corporation and Kilroy Realty, L.P. Unless stated otherwise or the context otherwise requires, references to “Kilroy Realty Corporation” or the “Company,” “we,” “our,” and “us” mean Kilroy Realty Corporation, a Maryland corporation, and its controlled and consolidated subsidiaries, and references to “Kilroy Realty, L.P.” or the “Operating Partnership” mean Kilroy Realty, L.P., a Delaware limited partnership and its controlled and consolidated subsidiaries.

The Company is a real estate investment trust, or REIT, and the general partner of the Operating Partnership. As of June 30, 2020, the Company owned an approximate 98.3% common general partnership interest in the Operating Partnership. The remaining approximate 1.7% common limited partnership interests are owned by non-affiliated investors and certain directors and officers of the Company. As the sole general partner of the Operating Partnership, the Company exercises exclusive and complete discretion over the Operating Partnership’s day-to-day management and control and can cause it to enter into certain major transactions, including acquisitions, dispositions, and refinancings and cause changes in its line of business, capital structure and distribution policies.

There are a few differences between the Company and the Operating Partnership that are reflected in the disclosures in this Form 10-Q. We believe it is important to understand the differences between the Company and the Operating Partnership in the context of how the Company and the Operating Partnership operate as an interrelated, consolidated company. The Company is a REIT, the only material asset of which is the partnership interests it holds in the Operating Partnership. As a result, the Company generally does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing equity from time to time and guaranteeing certain debt of the Operating Partnership. The Company itself is not directly obligated under any indebtedness, but generally guarantees all of the debt of the Operating Partnership. The Operating Partnership owns substantially all of the assets of the Company either directly or through its subsidiaries, conducts the operations of the Company’s business and is structured as a limited partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Company, which the Company generally contributes to the Operating Partnership in exchange for units of partnership interest, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, by the Operating Partnership’s incurrence of indebtedness or through the issuance of units of partnership interest.

Noncontrolling interests, stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of the Company and those of the Operating Partnership. The common limited partnership interests in the Operating Partnership are accounted for as partners’ capital in the Operating Partnership’s financial statements and, to the extent not held by the Company, as noncontrolling interests in the Company’s financial statements. The Operating Partnership’s financial statements reflect the noncontrolling interest in Kilroy Realty Finance Partnership, L.P., a Delaware limited partnership (the “Finance Partnership”). This noncontrolling interest represents the Company’s 1% indirect general partnership interest in the Finance Partnership, which is directly held by Kilroy Realty Finance, Inc., a wholly owned subsidiary of the Company. The differences between stockholders’ equity, partners’ capital and noncontrolling interest result from the differences in the equity issued by the Company and the Operating Partnership, and in the Operating Partnership’s noncontrolling interest in the Finance Partnership.

We believe combining the quarterly reports on Form 10-Q of the Company and the Operating Partnership into this single report results in the following benefits:


•	Combined reports better reflect how management and the analyst community view the business as a single operating unit;


•	Combined reports enhance investors’ understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management;


•	Combined reports are more efficient for the Company and the Operating Partnership and result in savings in time, effort and expense; and


•	Combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review.

To help investors understand the significant differences between the Company and the Operating Partnership, this report presents the following separate sections for each of the Company and the Operating Partnership:


•	consolidated financial statements;


•	the following notes to the consolidated financial statements:


◦	Note 4, Stockholders’ Equity of the Company;


◦	Note 6, Partners’ Capital of the Operating Partnership;


◦	Note 11, Net Income Available to Common Stockholders Per Share of the Company;


◦	Note 12, Net Income Available to Common Unitholders Per Unit of the Operating Partnership;


◦	Note 13, Supplemental Cash Flow Information of the Company; and


◦	Note 14, Supplemental Cash Flow Information of the Operating Partnership;


•	“Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations


◦	—Liquidity and Capital Resources of the Company;” and


◦	—Liquidity and Capital Resources of the Operating Partnership.”

This report also includes separate sections under “Part I – Financial Information, Item 4. Controls and Procedures” and separate Exhibit 31 and Exhibit 32 certifications for the Company and the Operating Partnership to establish that the Chief Executive Officer and the Chief Financial Officer of each entity have made the requisite certifications and that the Company and Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and 18 U.S.C. §1350.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

QUARTERLY REPORT FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2020

TABLE OF CONTENTS



		Page
	PART I – FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS (UNAUDITED) OF KILROY REALTY CORPORATION	1
	Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019	1
	Consolidated Statements of Operations for the Three and Six Months ended June 30, 2020 and 2019	2
	Consolidated Statements of Equity for the Three and Six Months ended June 30, 2020 and 2019	3
	Consolidated Statements of Cash Flows for the Six Months ended June 30, 2020 and 2019	5
Item 1.	FINANCIAL STATEMENTS (UNAUDITED) OF KILROY REALTY, L.P.	6
	Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019	6
	Consolidated Statements of Operations for the Three and Six Months ended June 30, 2020 and 2019	7
	Consolidated Statements of Capital for the Three and Six Months ended June 30, 2020 and 2019	8
	Consolidated Statements of Cash Flows for the Six Months ended June 30, 2020 and 2019	9
	Notes to Unaudited Consolidated Financial Statements	10
Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	28
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	59
Item 4.	CONTROLS AND PROCEDURES (KILROY REALTY CORPORATION AND KILROY REALTY, L.P.)	59
	PART II – OTHER INFORMATION
Item 1.	LEGAL PROCEEDINGS	60
Item 1A.	RISK FACTORS	60
Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	62
Item 3.	DEFAULTS UPON SENIOR SECURITIES	62
Item 4.	MINE SAFETY DISCLOSURES	62
Item 5.	OTHER INFORMATION	62
Item 6.	EXHIBITS	63
SIGNATURES		64

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) OF KILROY REALTY CORPORATION

KILROY REALTY CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited; in thousands, except share data)



	June 30, 2020			December 31, 2019
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	1,546,209		$	1,466,166
Buildings and improvements	6,289,816			5,866,477
Undeveloped land and construction in progress	2,109,196			2,296,130
Total real estate assets held for investment	9,945,221			9,628,773
Accumulated depreciation and amortization	(1,684,837		)	(1,561,361		)
Total real estate assets held for investment, net	8,260,384			8,067,412
CASH AND CASH EQUIVALENTS (Note 4)	605,012			60,044
RESTRICTED CASH	16,300			16,300
MARKETABLE SECURITIES (Note 10)	23,175			27,098
CURRENT RECEIVABLES, NET	20,925			26,489
DEFERRED RENT RECEIVABLES, NET	358,914			337,937
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET	209,637			212,805
RIGHT OF USE GROUND LEASE ASSETS (Note 9)	95,940			96,348
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 2)	68,378			55,661
TOTAL ASSETS	$	9,658,665		$	8,900,094
LIABILITIES AND EQUITY
LIABILITIES:
Secured debt, net (Notes 3 and 10)	$	256,113		$	258,593
Unsecured debt, net (Notes 3, and 10)	3,399,105			3,049,185
Unsecured line of credit (Notes 3 and 10)	—			245,000
Accounts payable, accrued expenses and other liabilities	401,378			418,848
Ground lease liabilities (Note 9)	98,093			98,400
Accrued dividends and distributions (Note 15)	57,600			53,219
Deferred revenue and acquisition-related intangible liabilities, net	129,264			139,488
Rents received in advance and tenant security deposits	63,523			66,503
Total liabilities	4,405,076			4,329,236
COMMITMENTS AND CONTINGENCIES (Note 9)
EQUITY:
Stockholders’ Equity (Note 4):
Common stock, $.01 par value, 280,000,000 and 150,000,000 shares authorized, respectively, 115,176,538 and 106,016,287 shares issued and outstanding, respectively	1,152			1,060
Additional paid-in capital	5,084,362			4,350,917
Distributions in excess of earnings	(113,223		)	(58,467		)
Total stockholders’ equity	4,972,291			4,293,510
Noncontrolling Interests (Notes 1 and 5):
Common units of the Operating Partnership	83,502			81,917
Noncontrolling interests in consolidated property partnerships	197,796			195,431
Total noncontrolling interests	281,298			277,348
Total equity	5,253,589			4,570,858
TOTAL LIABILITIES AND EQUITY	$	9,658,665		$	8,900,094

See accompanying notes to consolidated financial statements.

KILROY REALTY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except share and per share data)



	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
REVENUES
Rental income (Note 8)	$	218,356		$	197,629		$	436,989		$	397,011
Other property income	1,067			2,863			3,762			4,683
Total revenues	219,423			200,492			440,751			401,694
EXPENSES
Property expenses	37,829			38,536			76,812			76,685
Real estate taxes	21,854			17,926			44,056			36,565
Ground leases (Note 9)	2,330			2,114			4,647			4,086
General and administrative expenses (Notes 7 and 10)	38,597			19,857			57,607			43,198
Leasing costs	1,330			2,650			2,786			4,407
Depreciation and amortization	80,085			68,252			154,455			134,387
Total expenses	182,025			149,335			340,363			299,328
OTHER (EXPENSES) INCOME
Interest income and other net investment gain (loss) (Note 10)	2,838			616			(290		)	2,444
Interest expense (Note 3)	(15,884		)	(11,727		)	(30,328		)	(22,970		)
Gains on sales of depreciable operating properties	—			7,169			—			7,169
Total other (expenses) income	(13,046		)	(3,942		)	(30,618		)	(13,357		)
NET INCOME	24,352			47,215			69,770			89,009
Net income attributable to noncontrolling common units of the Operating Partnership	(367		)	(871		)	(1,072		)	(1,571		)
Net income attributable to noncontrolling interests in consolidated property partnerships	(4,367		)	(4,150		)	(9,263		)	(8,341		)
Total income attributable to noncontrolling interests	(4,734		)	(5,021		)	(10,335		)	(9,912		)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	19,618		$	42,194		$	59,435		$	79,097
Net income available to common stockholders per share – basic (Note 11)	$	0.17		$	0.41		$	0.53		$	0.77
Net income available to common stockholders per share – diluted (Note 11)	$	0.17		$	0.41		$	0.52		$	0.77
Weighted average common shares outstanding – basic (Note 11)	115,084,897			100,972,355			110,980,066			100,937,069
Weighted average common shares outstanding – diluted (Note 11)	115,539,725			101,809,541			111,464,647			101,618,953

See accompanying notes to consolidated financial statements.

KILROY REALTY CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited; in thousands, except share and per share/unit data)



	Common Stock											Total Stock- holders’ Equity			Noncontrolling Interests			Total Equity
	Number of Shares		Common Stock			Additional Paid-in Capital			Distributions in Excess of Earnings
BALANCE AS OF DECEMBER 31, 2019	106,016,287		$	1,060		$	4,350,917		$	(58,467	)	$	4,293,510		$	277,348		$	4,570,858
Net income									39,817			39,817			5,601			45,418
Issuance of common stock (Note 4)	8,897,110		89			721,705						721,794						721,794
Issuance of share-based compensation awards						1,720						1,720						1,720
Non-cash amortization of share-based compensation (Note 7)						8,653						8,653						8,653
Settlement of restricted stock units for shares of common stock	269,972		3			(3		)				—						—
Repurchase of common stock, stock options and restricted stock units	(117,445	)	(1		)	(9,798		)				(9,799		)				(9,799		)
Exchange of common units of the Operating Partnership	2,000		—			81						81			(81		)	—
Distributions to noncontrolling interests in consolidated property partnerships												—			(2,617		)	(2,617		)
Adjustment for noncontrolling interest						(6,094		)				(6,094		)	6,094			—
Dividends declared per common share and common unit ($0.485 per share/unit)									(57,532		)	(57,532		)	(980		)	(58,512		)
BALANCE AS OF MARCH 31, 2020	115,067,924		1,151			5,067,181			(76,182		)	4,992,150			285,365			5,277,515
Net income									19,618			19,618			4,734			24,352
Issuance of common stock	—		—			(45		)				(45		)				(45		)
Issuance of share-based compensation awards						805						805						805
Non-cash amortization of share-based compensation (Note 7)						13,576						13,576						13,576
Settlement of restricted stock units for shares of common stock	33,581		—			—						—						—
Repurchase of common stock, stock options and restricted stock units	(11,668	)	—			(735		)				(735		)				(735		)
Exchange of common units of the Operating Partnership	86,701		1			3,761						3,762			(3,762		)	—
Distributions to noncontrolling interests in consolidated property partnerships												—			(4,281		)	(4,281		)
Adjustment for noncontrolling interest						(181		)				(181		)	181			—
Dividends declared per common share and common unit ($0.485 per share/unit)									(56,659		)	(56,659		)	(939		)	(57,598		)
BALANCE AS OF JUNE 30, 2020	115,176,538		$	1,152		$	5,084,362		$	(113,223	)	$	4,972,291		$	281,298		$	5,253,589



	Common Stock											Total Stock- holders’ Equity			Noncontrolling Interests			Total Equity
	Number of Shares		Common Stock			Additional Paid-in Capital			Distributions in Excess of Earnings
BALANCE AS OF DECEMBER 31, 2018	100,746,988		$	1,007		$	3,976,953		$	(48,053	)	$	3,929,907		$	271,354		$	4,201,261
Net income									36,903			36,903			4,891			41,794
Opening adjustment to Distributions in Excess of Earnings upon adoption of ASC 842									(3,146		)	(3,146		)				(3,146		)
Issuance of share-based compensation awards						2,210						2,210						2,210
Non-cash amortization of share-based compensation						8,817						8,817						8,817
Settlement of restricted stock units for shares of common stock	393,240		4			(4		)				—						—
Repurchase of common stock, stock options and restricted stock units	(175,204	)	(1		)	(12,129		)				(12,130		)				(12,130		)
Exchange of common units of the Operating Partnership	2,000		—			78						78			(78		)	—
Distributions to noncontrolling interests in consolidated property partnerships												—			(6,309		)	(6,309		)
Adjustment for noncontrolling interest						279						279			(279		)	—
Dividends declared per common share and common unit ($0.455 per share/unit)									(48,394		)	(48,394		)	(921		)	(49,315		)
BALANCE AS OF MARCH 31, 2019	100,967,024		1,010			3,976,204			(62,690		)	3,914,524			268,658			4,183,182
Net income									42,194			42,194			5,021			47,215
Issuance of share-based compensation awards						820						820						820
Non-cash amortization of share-based compensation						8,732						8,732						8,732
Exercise of stock options	1,500		—			64						64						64
Settlement of restricted stock units for shares of common stock	16,270		—			—						—						—
Repurchase and cancellation of common stock, stock options, and restricted stock units	(12,759	)	—			(793		)				(793		)				(793		)
Distributions to noncontrolling interests in consolidated property partnerships												—			(1,487		)	(1,487		)
Adjustment for noncontrolling interest						(160		)				(160		)	160			—
Dividends declared per common share and common unit ($0.485 per share/unit)									(49,849		)	(49,849		)	(981		)	(50,830		)
BALANCE AS OF JUNE 30, 2019	100,972,035		$	1,010		$	3,984,867		$	(70,345	)	$	3,915,532		$	271,371		$	4,186,903

See accompanying notes to consolidated financial statements.

KILROY REALTY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)



	Six Months Ended June 30,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	69,770		$	89,009
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of real estate assets and leasing costs	148,419			131,982
Depreciation of non-real estate furniture, fixtures and equipment	6,036			2,405
Revenue reversals (recoveries) for doubtful accounts (Note 8)	12,381			(3,091		)
Non-cash amortization of share-based compensation awards	18,311			14,082
Non-cash amortization of deferred financing costs and debt discounts and premiums	1,076			717
Non-cash amortization of net below market rents	(4,500		)	(4,415		)
Gain on sale of depreciable operating properties	—			(7,169		)
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements	(8,793		)	(8,181		)
Straight-line rents	(33,514		)	(29,937		)
Amortization of right of use ground lease assets	408			291
Net change in other operating assets	13,991			(15,540		)
Net change in other operating liabilities	437			(4,493		)
Net cash provided by operating activities	224,022			165,660
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for development properties and undeveloped land	(293,711		)	(372,750		)
Expenditures for operating properties and other capital assets	(80,630		)	(61,557		)
Net proceeds received from dispositions	—			17,271
Net cash used in investing activities	(374,341		)	(417,036		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock (Note 4)	721,749			—
Proceeds from the issuance of unsecured debt (Note 3)	350,000			—
Borrowings on unsecured revolving credit facility (Note 3)	190,000			425,000
Repayments on unsecured revolving credit facility (Note 3)	(435,000		)	(95,000		)
Principal payments and repayments of secured debt (Note 3)	(2,543		)	(75,384		)
Financing costs	(2,283		)	(1,335		)
Repurchase of common stock and restricted stock units	(10,534		)	(12,618		)
Proceeds from exercise of stock options	—			64
Distributions to noncontrolling interests in consolidated property partnerships	(6,915		)	(7,812		)
Dividends and distributions paid to common stockholders and common unitholders	(109,187		)	(93,858		)
Net cash provided by financing activities	695,287			139,057
Net increase (decrease) in cash and cash equivalents and restricted cash	544,968			(112,319		)
Cash and cash equivalents and restricted cash, beginning of period	76,344			171,034
Cash and cash equivalents and restricted cash, end of period	$	621,312		$	58,715

See accompanying notes to consolidated financial statements.

ITEM 1: FINANCIAL STATEMENTS (UNAUDITED) OF KILROY REALTY, L.P.

KILROY REALTY, L.P.

CONSOLIDATED BALANCE SHEETS

(Unaudited; in thousands, except unit data)



	June 30, 2020			December 31, 2019
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	1,546,209		$	1,466,166
Buildings and improvements	6,289,816			5,866,477
Undeveloped land and construction in progress	2,109,196			2,296,130
Total real estate assets held for investment	9,945,221			9,628,773
Accumulated depreciation and amortization	(1,684,837		)	(1,561,361		)
Total real estate assets held for investment, net	8,260,384			8,067,412
CASH AND CASH EQUIVALENTS (Note 4)	605,012			60,044
RESTRICTED CASH	16,300			16,300
MARKETABLE SECURITIES (Note 10)	23,175			27,098
CURRENT RECEIVABLES, NET	20,925			26,489
DEFERRED RENT RECEIVABLES, NET	358,914			337,937
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET	209,637			212,805
RIGHT OF USE GROUND LEASE ASSETS (Note 9)	95,940			96,348
PREPAID EXPENSES AND OTHER ASSETS, NET (Note 2)	68,378			55,661
TOTAL ASSETS	$	9,658,665		$	8,900,094
LIABILITIES AND CAPITAL
LIABILITIES:
Secured debt, net (Notes 3 and 10)	$	256,113		$	258,593
Unsecured debt, net (Notes 3, 10)	3,399,105			3,049,185
Unsecured line of credit (Notes 3 and 10)	—			245,000
Accounts payable, accrued expenses and other liabilities	401,378			418,848
Ground lease liabilities (Note 9)	98,093			98,400
Accrued distributions (Note 15)	57,600			53,219
Deferred revenue and acquisition-related intangible liabilities, net	129,264			139,488
Rents received in advance and tenant security deposits	63,523			66,503
Total liabilities	4,405,076			4,329,236
COMMITMENTS AND CONTINGENCIES (Note 9)
CAPITAL:
Common units, 115,176,538 and 106,016,287 held by the general partner and 1,934,586 and 2,023,287 held by common limited partners issued and outstanding, respectively (Note 6)	5,049,844			4,369,758
Noncontrolling interests in consolidated property partnerships and subsidiaries (Note 1)	203,745			201,100
Total capital	5,253,589			4,570,858
TOTAL LIABILITIES AND CAPITAL	$	9,658,665		$	8,900,094

See accompanying notes to consolidated financial statements.

KILROY REALTY, L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except unit and per unit data)



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020				2019
REVENUES
Rental income (Note 8)	$	218,356	$	197,629	$	436,989			$	397,011
Other property income	1,067		2,863		3,762				4,683
Total revenues	219,423		200,492		440,751				401,694
EXPENSES
Property expenses	37,829		38,536		76,812				76,685
Real estate taxes	21,854		17,926		44,056				36,565
Ground leases (Note 9)	2,330		2,114		4,647				4,086
General and administrative expenses (Notes 7 and 10)	38,597		19,857		57,607				43,198
Leasing costs	1,330		2,650		2,786				4,407
Depreciation and amortization	80,085		68,252		154,455				134,387
Total expenses	182,025		149,335		340,363				299,328
OTHER (EXPENSES) INCOME
Interest income and other net investment gain (loss) (Note 10)	2,838		616		(290		)	<

Price	78.60	EPS	3
Shares	107	P/E	28
MCap	8,440	P/FCF	28
Net Debt	3,031	EBIT	339
TEV	11,471	TEV/EBIT	34
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-07-30
10-Q	2020-03-31	Filed 2020-04-30
10-K	2019-12-31	Filed 2020-02-13
10-Q	2019-09-30	Filed 2019-10-25
10-Q	2019-06-30	Filed 2019-07-25
10-Q	2019-03-31	Filed 2019-05-07
10-K	2018-12-31	Filed 2019-02-15
10-Q	2018-09-30	Filed 2018-10-25
10-Q	2018-06-30	Filed 2018-07-26
10-Q	2018-03-31	Filed 2018-04-27
10-K	2017-12-31	Filed 2018-02-13
10-Q	2017-09-30	Filed 2017-10-26
10-Q	2017-06-30	Filed 2017-07-27
10-Q	2017-03-31	Filed 2017-04-28
10-K	2016-12-31	Filed 2017-02-15
10-Q	2016-09-30	Filed 2016-10-28
10-Q	2016-06-30	Filed 2016-07-27
10-Q	2016-03-31	Filed 2016-04-28
10-K	2015-12-31	Filed 2016-02-12
10-Q	2015-09-30	Filed 2015-10-29
10-Q	2015-06-30	Filed 2015-07-30
10-Q	2015-03-31	Filed 2015-04-30
10-K	2014-12-31	Filed 2015-02-10
10-Q	2014-09-30	Filed 2014-10-30
10-Q	2014-06-30	Filed 2014-07-29
10-Q	2014-03-31	Filed 2014-05-01
10-K	2013-12-31	Filed 2014-02-14
10-Q	2013-09-30	Filed 2013-10-30
10-Q	2013-06-30	Filed 2013-07-31
10-Q	2013-03-31	Filed 2013-05-01
10-K	2012-12-31	Filed 2013-02-12
10-Q	2012-09-30	Filed 2012-10-31
10-Q	2012-06-30	Filed 2012-08-03
10-Q	2012-03-31	Filed 2012-05-02
10-K	2011-12-31	Filed 2012-02-08
10-Q	2011-09-30	Filed 2011-11-02
10-Q	2011-06-30	Filed 2011-07-27
10-Q	2011-03-31	Filed 2011-05-03
10-K	2010-12-31	Filed 2011-02-11
10-Q	2010-09-30	Filed 2010-10-26
10-Q	2010-06-30	Filed 2010-08-04
10-Q	2010-03-31	Filed 2010-04-30
10-K	2009-12-31	Filed 2010-02-11

8-K	2020-08-12	Enter Agreement, Exhibits
8-K	2020-08-03	Enter Agreement, Exhibits
8-K	2020-08-03	Other Events, Exhibits
8-K	2020-07-29	Earnings, Regulation FD, Exhibits
8-K	2020-06-29	Officers
8-K	2020-05-19
8-K	2020-04-29
8-K	2020-04-28
8-K	2020-02-18
8-K	2020-02-03
8-K	2020-01-31
8-K	2019-10-23
8-K	2019-09-18
8-K	2019-09-17
8-K	2019-09-03
8-K	2019-08-26
8-K	2019-07-24
8-K	2019-05-16
8-K	2019-05-06
8-K	2019-03-05
8-K	2019-02-28
8-K	2019-02-26
8-K	2019-02-26
8-K	2019-02-04
8-K	2018-12-27
8-K	2018-11-29
8-K	2018-11-14
8-K	2018-10-24
8-K	2018-08-08
8-K	2018-07-25
8-K	2018-06-05
8-K	2018-05-23
8-K	2018-05-11
8-K	2018-04-25
8-K	2018-02-13
8-K	2018-01-31

EX-10.1	exhibit101.htm
EX-31.1	exhibit311.htm
EX-31.2	exhibit312.htm
EX-31.3	exhibit313.htm
EX-31.4	exhibit314.htm
EX-32.1	exhibit321.htm
EX-32.2	exhibit322.htm
EX-32.3	exhibit323.htm
EX-32.4	exhibit324.htm

KRC 10Q Quarterly Report

Kilroy Realty Earnings 2020-06-30