Kilroy Realty Completes Asset Sale - Analyst Blog
2012年12月18日 - 6:40PM
Zacks
Kilroy Realty
Corp. (KRC), a real estate investment trust (REIT), has
recently sold an entire portfolio of industrial assets and two
small office properties spanning 3.7 million square feet to an
unnamed seller. The asset sale was part of the long-term strategy
of the company to divest its non-core industrial properties and
instead concentrate on its core office segment.
The company has already sold 44 properties in two tranches to two
institutional buyers for approximately $355 million. Kilroy expects
to record $185 million as profit from the transaction in the fourth
quarter of 2012. Moving forward, the company intends to invest the
proceeds from the deal to acquire and develop high-quality office
space primarily in the West Coast region.
Earlier in the month, Kilroy had also amended its existing
unsecured credit facility to extend the debt maturity as well as
reduce its interest burden. The modified credit facility with a
borrowing capacity of $500 million is currently scheduled to mature
in April 2017. All these strategic efforts were aimed to increase
its liquidity and relieve its debt burden.
The amended credit facility bears an annual interest at LIBOR plus
1.45% and a facility fee of 30 basis points, as determined by the
present credit ratings of the company. The existing credit facility
had an interest rate of LIBOR plus 1.75% and a facility fee of
0.35%, representing a significant dip in the funded interest
outflow. However, the other terms and conditions of the erstwhile
credit facility were kept unchanged.
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 September 30,
2012, the company owned 12.7 million rentable square feet of office
space.
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. We also have
a Neutral recommendation and a Zacks #3 Rank for MPG Office
Trust, Inc. (MPG), one of the competitors of Kilroy.
KILROY REALTY (KRC): Free Stock Analysis Report
MPG OFFICE TRST (MPG): Free Stock Analysis Report
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Kilroy Realty (NYSE:KRC)
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Kilroy Realty (NYSE:KRC)
過去 株価チャート
から 7 2023 まで 7 2024