Kilroy Realty Announces Ratings Upgrade from Moody’s
May 14 2015 - 2:46PM
Business Wire
Kilroy Realty Corporation (NYSE: KRC) announced today
that Moody’s Investors Service (“Moody’s”) has upgraded the
company’s senior unsecured debt rating to Baa2 with a stable
outlook. Moody’s also upgraded the company’s cumulative and
redeemable preferred stock rating to Baa3 from Ba1. Moody’s noted
KRC’s superior operating performance, first-class West Coast
portfolio spanning from Seattle to San Diego and management’s focus
on a strong financial credit profile as key factors in the upgrade.
The upgrade further reflects expectations that the company will
continue to maintain a conservative approach to balance sheet
management as it executes on its development pipeline.
“A fundamental component of our corporate strategy has always
been prudently managing our balance sheet while executing on our
growth initiatives. Over the past five years, since our initial
rating, we significantly transformed the company, enhanced our
position as a premier west coast real estate franchise and
strengthened our financial position,” said Tyler H. Rose, executive
vice president and chief financial officer. “We are pleased that
Moody’s has recognized our commitment to maintaining a strong
credit profile, which will further be improved with the projected
delivery by the end of this year of $590 million of projects under
construction, all of which are 100% leased.”
About Kilroy Realty Corporation. With more than 65 years’
experience owning, developing, acquiring and managing real estate
assets in West Coast real estate markets, Kilroy Realty Corporation
(KRC), a publicly traded real estate investment trust and member of
the S&P MidCap 400 Index, is one of the region’s premier
landlords. The company provides physical work environments that
foster creativity and productivity and serves a broad roster of
dynamic, innovation-driven tenants, including technology,
entertainment, digital media and health care companies.
At March 31, 2015, the company’s stabilized portfolio
totaled 13.0 million square feet of office properties, all
located in the coastal regions of greater Seattle, the San
Francisco Bay Area, Los Angeles, Orange County and San Diego. The
company is recognized by the Global Real Estate Sustainability
Benchmark (GRESB) as the North American leader in sustainability
and was ranked first among 151 North American participants
across all asset types. At the end of the first quarter, the
company’s properties were 42% LEED certified and 60% of eligible
properties were ENERGY STAR certified. In addition, KRC had
approximately 1.7 million square feet of new office and
mixed-use development under construction with a total estimated
investment of approximately $1.1 billion. More information is
available at http://www.kilroyrealty.com.
Forward-Looking Statements. This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements are based on our current expectations, beliefs and
assumptions, and are not guarantees of future performance.
Forward-looking statements are inherently subject to uncertainties,
risks, changes in circumstances, trends and factors that are
difficult to predict, many of which are outside of our control.
Accordingly, actual performance, results and events may vary
materially from those indicated in forward-looking statements, and
you should not rely on forward-looking statements as predictions of
future performance, results or events. Numerous factors could cause
actual future performance, results and events to differ materially
from those indicated in forward-looking statements, including,
among others, risks associated with: investment in real estate
assets, which are illiquid; trends in the real estate industry;
significant competition, which may decrease the occupancy and
rental rates of properties; the ability to successfully complete
acquisitions and dispositions on announced terms; the ability to
successfully operate acquired properties; the availability of cash
for distribution and debt service and exposure of risk of default
under debt obligations; adverse changes to, or implementations of,
applicable laws, regulations or legislation; and the ability to
successfully complete development and redevelopment projects on
schedule and within budgeted amounts. These factors are not
exhaustive. For a discussion of additional factors that could
materially adversely affect our business and financial performance,
see the factors included under the caption “Risk Factors” in our
annual report on Form 10-K for the year ended
December 31, 2014 and our other filings with the
Securities and Exchange Commission. All forward-looking statements
are based on information that was available, and speak only as of
the date on which they are made. We assume no obligation to update
any forward-looking statement made in this press release that
becomes untrue because of subsequent events, new information or
otherwise, except to the extent required in connection with ongoing
requirements under U.S. securities laws.
Kilroy Realty CorporationTyler H. RoseExecutive Vice
Presidentand Chief Financial Officer(310) 481-8484orMichelle
NgoSenior Vice President and Treasurer(310) 481-8581
Kilroy Realty (NYSE:KRC)
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