Kilroy Realty Corporation Reports First Quarter Financial Results.(Financial report)

Kilroy Realty Corporation (NYSE: KRC) reported financial results for its first quarter ended March 31, 2011 with net income available to common stockholders of $1.0 million, or $0.01 per share, compared to $4.9 million, or $0.11 per share, in the first quarter of 2010. Revenues in the first quarter totaled $88.1 million, up from $66.8 million in the prior year's first quarter. Funds from operations (FFO) for the period totaled $30.1 million, or $0.55 per share, compared to $25.8 million, or $0.57 per share, in the year-earlier period.

In the first quarter of 2011 the company incurred approximately $0.03 per share of litigation related expenses and approximately $0.01 per share of acquisition related expenses, and received a payment of approximately $0.01 per share related to a previously disclosed tenant default issue. All per share amounts in this report are presented on a diluted basis.

As previously reported, in January KRC completed its third acquisition in the South Financial District of San Francisco, purchasing 250 Brannan Street for approximately $33.0 million. The 91,000 square-foot office building, currently 77% leased to two tenants, increased the company's stabilized portfolio at March 31, 2011 to approximately 14.1 million square feet.

In April, the company closed on the previously announced $100.1 million acquisition of the Plaza at Yarrow Bay, a four building, 280,000 square foot, 87% occupied office project in Kirkland, Washington. The company assumed approximately $30 million of secured debt as part of the acquisition. In addition, the company is in various stages of negotiations on six additional office acquisitions, which have a total estimated purchase price of approximately $330 million. These acquisitions are projected to close in the second to third quarter of 2011, subject to customary closing conditions.

KRC signed new and renewing leases during the first quarter on approximately 350,000 square feet of office and industrial space, boosting occupancy in the company's stabilized portfolio at the end of the quarter to 90.8%, up from 89.1% at year-end 2010.

In April, KRC completed a public offering of 6,037,500 shares of its common stock at a price of $38.25 per share, generating net proceeds of approximately $221.2 million. The company used the net proceeds to pay down its revolving credit facility and fund its ongoing acquisition program.

"With commercial real estate showing more signs of stability, we're evaluating value-added opportunities in addition to core properties," said John B. Kilroy, Jr., KRC's president and chief executive officer. "Our pending and closed acquisitions are well-located, quality assets that provide economic upside at purchase prices below replacement cost."

KRC management will discuss updated earnings guidance for fiscal 2011 during the company's May 3, 2011 earnings conference call. The call will begin at 10:00 a.m. Pacific Time and last approximately one hour. Those interested in listening via the Internet can access the conference call at www.kilroyrealty.com. Please go to the website 15 minutes before the call and register. It may be necessary to download audio software to hear the conference call. Those interested in listening via telephone can access the conference call at (888) 680-0878, reservation # 11433812. A replay of the conference call will be available via phone through May 10, 2011 at (888) 286-8010, reservation # 97321664, or via the Internet at the company's website.

Keywords: Finance, Financial Companies, Industry, Investing, Kilroy Realty, Kilroy Realty Corporation, Real Estate Investment Trust - Diversified Companies, Software, Stock Market.

This article was prepared by Computer Weekly News editors from staff and other reports. Copyright 2011, Computer Weekly News via VerticalNews.com.