Kilroy Realty Leases in Los Angeles - Analyst Blog


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Kilroy Realty Corporation ( KRC ) recently announced that it has signed two lease agreements for a total of 77,080 square feet of space in West Los Angeles. The recent agreements enhance  the company's total portfolio in Los Angeles to  688,000 square feet, of which 98% is leased.

Kilroy Realty signed a 38,881 square feet, full-floor lease with Red Bull for a term of 4.3 years at its 378,000 square foot Westside Media Center campus in Los Angeles. This makes the project 99% leased. Along with this, the company also signed a 38,199 square feet lease with Crispin Porter for 10.6 years at its Santa Monica Media Center in Los Angeles. This makes the project 100% leased.

The signing of these two leases further strengthens the company's position in the West Coast, particularly in Los Angeles.KRC reported its strongest annual leasing performance in the company's history during fiscal 2011.  Kilroy signed new and renewing leases on 2.6 million square feet of office and industrial space during the year.

Kilroy Realty reported fourth quarter 2011 FFO (funds from operations) of $40.5 million or 66 cents per share compared with $29.5 million or 54 cents per share in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Kilroy Realty is a real estate investment trust engaged in premier office and industrial submarkets along the West Coast. The company has owned, developed, acquired and managed real estate assets, consisting primarily of Class A real estate properties in the coastal regions of Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay Area.

Kilroy Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, MPG Office Trust, Inc. ( MPG ), currently retains a Zacks #5 Rank, which translates into a short-term Strong Sell rating.

KILROY REALTY ( KRC ): Free Stock Analysis Report
MPG OFFICE TRST ( MPG ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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