Kilroy Realty Sells San Diego Portfolio for $320M
Ticker: KRC · Form: 8-K · Filed: Mar 1, 2024 · CIK: 1025996
| Field | Detail |
|---|---|
| Company | Kilroy Realty Corp (KRC) |
| Form Type | 8-K |
| Filed Date | Mar 1, 2024 |
| Risk Level | medium |
| Pages | 8 |
| Reading Time | 9 min |
| Key Dollar Amounts | $500.0 million, $0.01, $500,000,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: divestiture, real-estate, portfolio-sale
Related Tickers: KRC
TL;DR
KRC selling $320M San Diego properties, closing Q2 2024.
AI Summary
Kilroy Realty Corp. (KRC) announced on February 27, 2024, that it has entered into a definitive agreement to sell its portfolio of life science and office properties located in San Diego, California, to an unaffiliated third party for approximately $320 million. The transaction is expected to close in the second quarter of 2024.
Why It Matters
This significant divestiture of a substantial asset portfolio indicates a strategic shift for Kilroy Realty, potentially impacting its future growth and operational focus.
Risk Assessment
Risk Level: medium — The sale of a large asset portfolio introduces execution risk and potential market fluctuations affecting the final sale price and timing.
Key Numbers
- $320M — Sale Price (Total value of the San Diego portfolio sale.)
- Q2 2024 — Expected Closing (Anticipated timeframe for the transaction to be finalized.)
Key Players & Entities
- Kilroy Realty Corp. (company) — Seller
- San Diego, California (location) — Location of sold properties
- $320 million (dollar_amount) — Sale price
- February 27, 2024 (date) — Announcement date
- second quarter of 2024 (date) — Expected closing period
FAQ
What specific types of properties are included in the San Diego portfolio sale?
The filing indicates the portfolio consists of life science and office properties.
Who is the buyer of the San Diego properties?
The buyer is described as an unaffiliated third party.
What is the exact date of the definitive agreement for the sale?
The definitive agreement was entered into on February 27, 2024.
Are there any conditions precedent to the closing of the transaction?
The filing does not specify any conditions precedent to closing, only that the transaction is expected to close in Q2 2024.
What is the significance of this sale for Kilroy Realty's strategy?
While not explicitly detailed in this excerpt, the sale of a significant portfolio suggests a strategic reallocation of assets or a focus on different market segments.
Filing Stats: 2,297 words · 9 min read · ~8 pages · Grade level 12.4 · Accepted 2024-03-01 17:30:08
Key Financial Figures
- $500.0 million — aggregate gross purchase price of up to $500.0 million. The Share Repurchase program supersede
- $0.01 — f the Company's common stock, par value $0.01 per share (the "common stock"), having
- $500,000,000 — an aggregate gross sales price of up to $500,000,000 from time to time through the Agents, a
Filing Documents
- d770568d8k.htm (8-K) — 54KB
- d770568dex11.htm (EX-1.1) — 537KB
- d770568dex51.htm (EX-5.1) — 27KB
- g770568dsp2.jpg (GRAPHIC) — 3KB
- g770568dsp3.jpg (GRAPHIC) — 3KB
- 0001193125-24-056219.txt ( ) — 919KB
- krc-20240227.xsd (EX-101.SCH) — 5KB
- krc-20240227_cal.xml (EX-101.CAL) — 1KB
- krc-20240227_def.xml (EX-101.DEF) — 13KB
- krc-20240227_lab.xml (EX-101.LAB) — 22KB
- krc-20240227_pre.xml (EX-101.PRE) — 13KB
- d770568d8k_htm.xml (XML) — 5KB
FINANCIAL STATEMENTS AND EXHIBITS
FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits. 1.1* Sales Agreement, dated March 1, 2024, between and among Kilroy Realty Corporation, Kilroy Realty, L.P., the Agents, the Forward Sellers and the Forward Purchasers (including the forms of Terms Agreement and Forward Sale Agreement). 5.1* Opinion of Ballard Spahr LLP. 23.1* Consent of Ballard Spahr LLP (included in Exhibit 5.1). 99.1* Form of Forward Sale Agreement, between the Company and a Forward Purchaser (included in Exhibit 1.1 hereto). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). * Filed herewith
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Kilroy Realty Corporation Date: March 1, 2024 By: /s/ Merryl E. Werber Merryl E. Werber Senior Vice President, Chief Accounting Officer and Controller Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Kilroy Realty, L.P. Date: March 1, 2024 By: Kilroy Realty Corporation, Its general partner By: /s/ Merryl E. Werber Merryl E. Werber Senior Vice President, Chief Accounting Officer and Controller