Financial Data and Key Metrics Changes - FFO for the quarter was $1.13 per diluted share, including approximately $0.11 per share of one-time items [10] - Cash same property NOI growth in the second quarter was 4.50%, with one-time items contributing 3.00% [10] - Occupancy at the end of the second quarter was 80.8%, down from 81.4% at the end of the first quarter [10] Business Line Data and Key Metrics Changes - The company is under contract to sell land at 20 Sixth Street in Los Angeles for $41 million, which is approximately $20 million per acre [6] - The sale of 501 Santa Monica was completed for $40 million, slightly over $500 per square foot [7] - A four-building campus in Silicon Valley is under contract for $365 million, with current occupancy at 89% expected to drop to 65% in 2026 [8] Market Data and Key Metrics Changes - The company has seen a resurgence in office demand in San Francisco, which is encouraging for future developments [3] - The spread between leased and occupied space increased to 270 basis points, a 100 basis point improvement year over year [12] - GAAP releasing spreads were negative 11.2% in the second quarter, while cash releasing spreads were negative 15.2% [12] Company Strategy and Development Direction - The company aims to monetize non-income producing land and concentrate investments in areas with robust demand drivers [5] - The Flower Mart project is the largest investment in the future development pipeline, requiring a redesign to maximize value [3] - The company is focused on maintaining flexibility in its development plans to respond to market conditions [4] Management's Comments on Operating Environment and Future Outlook - Management expects a modest decline in occupancy in the third quarter but is optimistic about positive net absorption in the fourth quarter [11] - The company raised its 2025 FFO outlook to a range of $4.05 to $4.15 per share, reflecting updated expectations for capitalization at the Flower Mart [13] - Management acknowledges the impact of AI on office space requirements, noting both job losses and new job creation in the tech sector [42][45] Other Important Information - The company has a total buyback authorization of approximately $400 million, which has not yet been utilized [22] - The company is actively evaluating its future land bank for monetization opportunities [81] Q&A Session Summary Question: Can you talk about the type of buyers and valuation discussions? - Management noted a variety of buyers including institutional and owner-users, with good depth in the bidding pool [17][20] Question: Can you provide more detail on KOP2 activity? - Management reported active lease negotiations for about 100,000 square feet primarily with life science and healthcare tenants [24][25] Question: How do you view the impact of AI on office space? - Management sees AI as a growth strategy for companies, with new job creation expected in markets like San Francisco [42][45] Question: What is the status of the Flower Mart project? - Management is in ongoing discussions with the city for flexibility in entitlements and expects to provide updates in future calls [60][91]

Financial Performance - Net loss attributable to common shareholders was $(116395) thousand for the six months ended June 30, 2025[111] - Funds From Operations (FFO) was $50775 thousand for the six months ended June 30, 2025, or $015 per diluted share for Q2 2025[121] - Cash Available for Distribution (CAD) was $30546 thousand for the six months ended June 30, 2025, with a CAD payout ratio of 1726%[123] - Same Store NOI increased by 10% GAAP and 63% Cash for Q2 2025[12] Leasing and Occupancy - Wholly-owned portfolio occupancy was 886% at the end of Q2 2025, and 911% leased as of July 18, 2025[9] - Total leases executed in the wholly-owned portfolio during Q2 2025 were 233844 square feet[7] - Tenant retention for the core portfolio was 819% in Q2 2025[12] Development and Dispositions - The company recognized aggregate impairment charges of $341 million due to rezoning permit application for residential conversion of two properties within Austin segment[6] - Completed the sale of a wholly-owned office property in Austin, Texas for a gross sales price of $176 million[8] - Construction started on a 120-room luxury boutique hotel in Radnor, Pennsylvania, estimated to cost $595 million[8] Capital Structure - Issued $1500 million of 8875% guaranteed notes due 2029 for net proceeds of $1575 million[8] - Repaid construction loan of $436 million related to 155 King of Prussia Road with cash on-hand[8] - Net debt to total gross assets was 490% as of June 30, 2025[12]

Kilroy Realty Corporation Quarter Ended December 31, 2024 Company Overview Who is Kilroy? | IO QUICK FACTS | | | | --- | --- | --- | | abilized Portfolio | | 17,142,721 | | ેટ | | 123 | | ed (%) | | 82.8% / 84.9% | | ENANTS BY ABR (1) | | | | % of | % of | Credit Ratings | | ABR (1) | RSF | (S&P / Moody's) | | 5.7% | 5.0% | AA+ / Aaa | | 4.5% | 2.2% | BBB / Baa2 | | 4.2% | 2.5% | NR / NR | | 3.5% | 3.1% | A+ / A1 | | 3.3% | 3.4% | AAA / Aaa | | 3.1% | 2.8% | A+ / A1 | | 3.1% | 1.7% | NR / NR | | 3.0% | 1.4% ...