Kilroy Realty Corp.
), a real estate investment trust (REIT), has recently priced an
equity offering of 5 million shares at $46.10 each. The company
will also grant the underwriters an option to purchase an
additional 750,000 shares to cover any over-allotments.
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BofA Merrill Lynch, the investment banking and wealth management
Bank of America Corporation
); J.P. Morgan Securities LLC, the investment banking division of
JPMorgan Chase & Co.
); Barclays Capital Inc., the investment banking division of
); and Wells Fargo Securities, part of
Wells Fargo & Company
) are acting as joint book-running managers for the offering.
Kilroy expects to raise net proceeds of $220.9 million from the
secondary offering, excluding the execution of the underwriters'
options. The company intends to contribute the proceeds from the
equity offering to its operating partnership, which in turn is
likely to utilize it for general corporate purposes.
Kilroy owns, develops and manages a diverse portfolio of office,
industrial and multi-purpose real estate properties primarily in
the coastal regions of Los Angeles, Orange County, San Diego,
greater Seattle and the San Francisco Bay Area. As of June 30,
2012, the company owned 12.2 million rentable square feet of
commercial office space and 3.4 million rentable square feet of
Kilroy maintains an active multi-year development program focused
on the economically dynamic locations characterized by strong
long-term demand, limited supply, and high barriers to entry. As
such, most of the properties of the company are concentrated in the
coastal submarkets of Southern California that offer both - a
vibrant economic backdrop for businesses and a unique quality of
life for their employees.
Currently, we have a Neutral recommendation and a Zacks #3 Rank for
Kilroy that translates into a short-term Hold rating.