Kilroy Realty Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Kilroy Realty Corp. has submitted its 2023 10-K filing, detailing financial performance and corporate structure.</b>

AI Summary

KILROY REALTY CORP (KRC) filed a Annual Report (10-K) with the SEC on February 9, 2024. Kilroy Realty Corp. filed its annual report for the fiscal year ending December 31, 2023. The filing includes financial data for the years 2021, 2022, and 2023. Key financial statement components such as common stock, additional paid-in capital, and noncontrolling interest are detailed. The report covers Kilroy Realty, L.P., a subsidiary, with its own Central Index Key (0001493976). The company's principal business address is 12200 W. Olympic Blvd., Suite 200, Los Angeles, CA 90064.

Why It Matters

For investors and stakeholders tracking KILROY REALTY CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Kilroy Realty Corp.'s financial health and operational status for the fiscal year 2023, crucial for investors assessing its performance. The detailed financial data, including historical figures from 2021-2023, allows for trend analysis and comparison, aiding in investment decisions.

Risk Assessment

Risk Level: low — KILROY REALTY CORP shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant negative news or disclosures that would elevate the risk level.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Kilroy Realty Corp.'s performance and outlook for 2024.

Key Numbers

• 20231231 — Fiscal Year End (Period of report)
• 2024-02-09 — Filing Date (Date of filing)
• 157 — Public Document Count (Number of documents in the filing)
• 6798 — SIC Code (Standard Industrial Classification for Real Estate Investment Trusts)

Key Players & Entities

• KILROY REALTY CORP (company) — Filer name
• Kilroy Realty, L.P. (company) — Filer name
• 0001025996 (company) — Central Index Key for Kilroy Realty Corp.
• 0001493976 (company) — Central Index Key for Kilroy Realty, L.P.
• 12200 W. OLYMPIC BLVD., SUITE 200 (company) — Business and mailing address
• LOS ANGELES (company) — City for business and mailing address
• CA (company) — State for business and mailing address
• 90064 (company) — ZIP code for business and mailing address

Forward-Looking Statements

• Kilroy Realty Corp will continue to focus on real estate investments in its core markets. (KILROY REALTY CORP) — high confidence, target: 2024-12-31
• The company's financial performance in 2024 will be significantly influenced by prevailing interest rates and commercial real estate market conditions. (KILROY REALTY CORP) — medium confidence, target: 2024-12-31

FAQ

Industry Context

Kilroy Realty Corp. operates within the Real Estate Investment Trusts (REITs) sector, focusing on the acquisition, development, ownership, and management of commercial real estate properties.

Regulatory Implications

The filing is a standard Form 10-K, a mandatory annual report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the detailed financial statements for revenue, net income, and balance sheet items for the fiscal years 2021-2023.
2. Review any disclosed risk factors or management discussion and analysis to understand potential challenges and strategic priorities.
3. Compare key financial metrics against industry benchmarks and prior year performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-09: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), providing updated financial and operational information compared to previous filings.

Filing Documents

• krc-20231231.htm (10-K) — 4447KB
• exhibit4vi1.htm (EX-4.VI1) — 166KB
• exhibit1052.htm (EX-10.52) — 152KB
• exhibit1053.htm (EX-10.53) — 85KB
• exhibit1054.htm (EX-10.54) — 28KB
• exhibit1055.htm (EX-10.55) — 61KB
• exhibit211.htm (EX-21.1) — 43KB
• exhibit212.htm (EX-21.2) — 42KB
• exhibit231.htm (EX-23.1) — 2KB
• exhibit232.htm (EX-23.2) — 2KB
• exhibit311.htm (EX-31.1) — 10KB
• exhibit312.htm (EX-31.2) — 10KB
• exhibit313.htm (EX-31.3) — 10KB
• exhibit314.htm (EX-31.4) — 10KB
• exhibit321.htm (EX-32.1) — 5KB
• exhibit322.htm (EX-32.2) — 5KB
• exhibit323.htm (EX-32.3) — 6KB
• exhibit324.htm (EX-32.4) — 6KB
• exhibit971.htm (EX-97.1) — 14KB
• image_0a.jpg (GRAPHIC) — 39KB
• krc-20231231_g1.jpg (GRAPHIC) — 132KB
• krc-20231231_g2.jpg (GRAPHIC) — 88KB
• 0001025996-24-000094.txt (&nbsp;) — 20476KB
• krc-20231231.xsd (EX-101.SCH) — 145KB
• krc-20231231_cal.xml (EX-101.CAL) — 119KB
• krc-20231231_def.xml (EX-101.DEF) — 756KB
• krc-20231231_lab.xml (EX-101.LAB) — 1269KB
• krc-20231231_pre.xml (EX-101.PRE) — 1019KB
• krc-20231231_htm.xml (XML) — 3098KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. 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; consolidated financial statements; the following notes to the consolidated financial statements: Note 9, Secured and Unsecured Debt of the Company; Note 10, Secured and Unsecured Debt of the Operating Partnership; Note 12, Noncontrolling Interests on the Company's Consolidated Financial Statements; Note 13, Noncontrolling Interests on the Operating Partnership's Consolidated Financial Statements; Note 14, Stockholders' Equity of the Company; Note 15, Partners' Capital of the Operating Partnership; Note 21, Net Income Available to Common Stockholders Per Share of the Company; Note 22, Net Income Available to Common Unitholders Per Unit of the Operating Partnership; Note 23, Supplemental Cash Flows Information of the Company; and Note 24, Supplemental Cash Flows Information of the Operating Partnership. This report also includes separate sections under Item 9A. 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. 2 TABLE OF CONTENTS Page PART I

Risk Factors

Item 1A. Risk Factors 15

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 39

Cybersecurity

Item 1C. Cybersecurity 39

Properties

Item 2. Properties 41

Legal Proceedings

Item 3. Legal Proceedings 50

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 50 PART II

Market for Kilroy Realty Corporation's Common Equity, Related Stockholder Matters and

Item 5. Market for Kilroy Realty Corporation's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 51 Market for Kilroy Realty, L.P.'s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 52

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 54

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 93

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 94

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 94

Controls and Procedures

Item 9A. Controls and Procedures 95

Other Information

Item 9B. Other Information 99

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 99 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 99

Executive Compensation

Item 11. Executive Compensation 99

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 99

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 99

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 99 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 100

Form 10-K Summary

Item 16. Form 10-K Summary 105

SIGNATURES

SIGNATURES 106 PART I This document contains certain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among other things, statements or information concerning our plans, objectives, capital resources, portfolio performance, results of operations, projected future occupancy and rental rates, lease expirations, debt maturities, potential investments, strategies such as capital recycling, development and redevelopment activity, projected construction costs, projected construction commencement and completion dates, projected square footage of space that could be constructed on undeveloped land that we own, projected rentable square footage of or number of units in properties under construction or in the development pipeline, anticipated proceeds from capital recycling activity or other dispositions and anticipated dates of those activities or dispositions, projected increases in the value of properties, dispositions, future executive incentive compensation, pending, potential or proposed acquisitions, plans to grow our net operating income and funds from operations, our ability to re-lease properties at or above current market rates, anticipated market conditions, demographics and other forward-looking financial data, as well as the discussion in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations -Factors That May Influence Future Results of Operations." Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated or implied in the f

BUSINESS

ITEM 1. BUSINESS The Company Kilroy Realty Corporation (the "Company") is a self-administered real estate investment trust ("REIT") active in premier office, life science and mixed-use property types in the United States. The Company has earned global recognition for sustainability, building operations, innovation and design. The Company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. We own, develop, acquire and manage real estate assets, consisting primarily of Class A properties in Los Angeles, San Diego, the San Francisco Bay Area, Seattle and Austin, 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"). We own our interests in all of our real estate assets through Kilroy Realty, L.P. (the "Operating Partnership") and generally conduct substantially all of our operations through the Operating Partnership. Our stabilized portfolio of operating properties was comprised of the following properties at December 31, 2023: Number of Buildings Rentable Square Feet Number of Tenants Percentage Occupied (1) Percentage Leased Stabilized Office Properties (2) 121 17,044,128 410 85.0 % 86.4 % ________________________ (1) Represents economic occupancy. (2) Includes stabilized life science and retail space. Number of Properties Number of Units 2023 Average Occupancy Stabilized Residential Properties 3 1,001 92.8 % Our stabilized portfolio includes all of our properties with the exception of development properties currently committed for construction, under construction, or in the

Executive Compensation Committee Charter;

Executive Compensation Committee Charter; Nominating / Corporate Governance Committee Charter; and Corporate Social Responsibility and Sustainability Committee Charter. 6 You may request copies of any of these documents by writing to: Attention: Investor Relations Kilroy Realty Corporation 12200 West Olympic Boulevard, Suite 200 Los Angeles, California 90064 We intend to disclose on our website under "Investors —Overview —Governance Documents" any amendment to, or waiver of, any provisions of our Code of Business Conduct and Ethics applicable to the directors and/or officers of the Company that would otherwise be required to be disclosed under the rules of the Securities and Exchange Commission or the New York Stock Exchange. Business and Growth Strategies Growth Strategies . We believe that a number of factors and strategies will enable us to continue to achieve our objectives of long-term sustainable growth in Net Operating Income (defined below) and FFO (defined below) as well as maximization of long-term stockholder value. These factors and strategies include: the quality, physical characteristics and operating sustainability of our properties, as well as our geographic presence in technology and life science market clusters; our ability to efficiently manage our assets through our seasoned management team, which possesses core capabilities in all aspects of real estate ownership, including property management, leasing, marketing, financing, accounting, legal, and construction and development management; our strong financial position that has and will continue to allow us to pursue attractive acquisition and development and redevelopment opportunities; our access to development, redevelopment, acquisition and leasing opportunities as a result of our extensive experience and significant working relationships with major West Coast property owners, brokers, corporate tenants, municipalities and landowners given our over 75-year presence in

View Full Filing

View this 10-K filing on SEC EDGAR