Kilroy Realty (KRC) Tops Q1 EPS by 6c; Announces Sale of 10 West Coast Office Buildings

Kilroy Realty (NYSE: KRC) reported Q1 EPS of $1.01, $0.06 better than the analyst estimate of $0.95. Revenue for the quarter came in at $146.08 million versus the consensus estimate of $134.9 million.

Kilroy has sold or is in escrow to sell ten West Coast office buildings for gross proceeds of approximately $309.2 million. In aggregate, the properties total 1.0 million square feet and were approximately 84% occupied at March 31, 2015. As part of the company’s capital recycling strategy, the company will use the proceeds to fund its expanding West Coast office development program and potential acquisition opportunities, pay down its line of credit and for other general corporate purposes.

Details of the transactions are as follows:

• In the first quarter, the company entered into contract to sell nine office buildings in San Diego, California in two tranches:
  • The company completed the sale of three office buildings in mid-April, 10770 Wateridge Circle and 6200 and 6220 Greenwich Drive, for $95.0 million in gross proceeds.
  • The company expects to complete the sale of the second tranche for $163.0 million later in the second quarter. The six office buildings in this tranche include 6260, 6290, 6310, 6340, and 6350 Sequence Drive and 4921 Directors Place.
• Separately, in late-April, the company completed the sale of 15050 NE 36th Street in Redmond, Washington for gross proceeds of $51.2 million.

“We continue to be pleased with our ability to successfully execute our strategic plan of recycling capital into our state-of-the-art, value-creating development program,” said John Kilroy, chairman, president and CEO of Kilroy Realty. "The sales prices in these transactions reflect strong investor demand for well-located, high quality properties.”

For earnings history and earnings-related data on Kilroy Realty (KRC) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Rein Therapeutics Inc. (RNTX) Tops Q2 EPS by 39c
• Diana Shipping withdraws bid to acquire Genco Shipping