Kilroy Realty Corp. Files 2024 10-K

TL;DR

KRC filed its 2024 10-K, detailing its real estate operations and financials for the year ending Dec 31, 2024.

AI Summary

Kilroy Realty Corp. (KRC) filed its 2024 10-K on February 13, 2025, reporting on its fiscal year ending December 31, 2024. The company, a real estate investment trust, is headquartered in Los Angeles, California. The filing covers its operations and financial status as a REIT, with its primary business address at 12200 W. Olympic Blvd., Suite 200.

Why It Matters

This 10-K filing provides investors and analysts with a comprehensive overview of Kilroy Realty Corp.'s financial performance, operational strategies, and risk factors for the fiscal year 2024.

Risk Assessment

Risk Level: medium — As a real estate investment trust, Kilroy Realty Corp. is subject to market fluctuations, interest rate changes, and tenant-related risks inherent in the real estate sector.

Key Numbers

• 1231 — Fiscal Year End (Indicates the end date of the reporting period for financial statements.)
• 2024 — Reporting Year (The fiscal year covered by this 10-K filing.)

Key Players & Entities

• KILROY REALTY CORP (company) — Filer
• Kilroy Realty, L.P. (company) — Subsidiary Filer
• 12200 W. OLYMPIC BLVD., SUITE 200 (location) — Business and Mail Address
• LOS ANGELES, CA (location) — City, State of Business and Mail Address
• 20241231 (date) — Fiscal Year End
• 20250213 (date) — Filing Date

FAQ

Filing Documents

• krc-20241231.htm (10-K) — 4540KB
• exhibit1013.htm (EX-10.13) — 25KB
• exhibit191.htm (EX-19.1) — 155KB
• 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
• kilroy_logoxredxrgba.jpg (GRAPHIC) — 48KB
• krc-20241231_g1.jpg (GRAPHIC) — 41KB
• krc-20241231_g2.jpg (GRAPHIC) — 85KB
• 0001025996-25-000052.txt ( ) — 20649KB
• krc-20241231.xsd (EX-101.SCH) — 151KB
• krc-20241231_cal.xml (EX-101.CAL) — 125KB
• krc-20241231_def.xml (EX-101.DEF) — 743KB
• krc-20241231_lab.xml (EX-101.LAB) — 1272KB
• krc-20241231_pre.xml (EX-101.PRE) — 1071KB
• krc-20241231_htm.xml (XML) — 3236KB

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 14

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 38

Cybersecurity

Item 1C. Cybersecurity 38

Properties

Item 2. Properties 40

Legal Proceedings

Item 3. Legal Proceedings 49

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 49 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 50 Market for Kilroy Realty, L.P.'s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 51

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 53

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 94

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 95

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 95

Controls and Procedures

Item 9A. Controls and Procedures 96

Other Information

Item 9B. Other Information 100

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 100 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 100

Executive Compensation

Item 11. Executive Compensation 100

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 100

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 100

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 100 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 101

Form 10-K Summary

Item 16. Form 10-K Summary 106

SIGNATURES

SIGNATURES 107 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

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's approach to modern business environments is designed to drive creativity and productivity for some of the world's leading technology, entertainment, life science, and business services companies, and we have been consistently recognized for our leadership in sustainability and building operations. The Company owns, develops, acquires, and manages real estate assets, consisting primarily of premier 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. The Company qualifies 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, 2024: Number of Buildings Rentable Square Feet Number of Tenants Percentage Occupied (1) Stabilized Office Properties (2) 123 17,142,721 428 82.8 % ________________________ (1) Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements. (2) Includes stabilized life science and retail space. Number of Properties Number of Units 2024 Average Occupancy Stabilized Residential Properties 3 1,001 92.5 % Our stabilized portfolio includes all of our properties with the exception of development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, undeveloped land, and real estate assets held for sale. We define redevelopment properties as th

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 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), and the maximization of long-term stockholder value, including: Operating strategies Development and redevelopment strategies Capital recycling strategies Financing strategies Sustainability strategies "Net Operating Income" is defined as consolidated operating revenues (rental income and other property income) less consolidated operating expenses (property expenses, real estate taxes and ground leases). "FFO" is Funds From Operations available to common stockholders and common unitholders calculated in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("Nareit"). (See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations —Results of Operations" and "—Non-GAAP Supplemental Financial Measures: Funds From Operations" for a reconciliation of these measures to generally accepted accounting principles ("GAAP") net income available to common stockh

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View this 10-K filing on SEC EDGAR