Kilroy Realty Corporation Reports Fourth Quarter Financial Results
Fourth Quarter and Full Year Highlights
Financial Results
-
Revenues of
$269.0 million -
Net income available to common stockholders of
$0.40 per diluted share -
Funds from operations available to common stockholders and unitholders (“FFO”) of
$129.3 million , or$1.08 per diluted share
Leasing and Occupancy
-
Stabilized portfolio was 85.0% occupied and 86.4% leased at
December 31, 2023 -
Signed approximately 588,000 square feet of new and renewal leases during the quarter, including short-term leases, the highest quarterly leasing volume since Q2 2019
- GAAP and cash rents increased 21.7% and 1.6%, respectively, from prior levels in the stabilized portfolio, excluding short-term leases
- For the full year, signed approximately 1,347,000 square feet of new and renewal leases, including short-term leases, the highest annual leasing volume since 2019
Development
-
Added approximately
$750.0 million of new development properties to the stabilized portfolio throughout the year-
During the fourth quarter, added
Indeed Tower , a$690.0 million , approximately 759,000 square foot office building in the Austin CBD, which is currently 78% leased and 65% occupied -
During the third quarter, added
9514 Towne Centre Drive , a$60.0 million , approximately 71,000 square foot office building in the University Towne Center submarket ofSan Diego , which is 100% leased and occupied
-
During the fourth quarter, added
Balance Sheet / Liquidity
-
During the first quarter, increased the borrowing capacity of the unsecured term loan facility to
$520.0 million , which was fully outstanding atDecember 31, 2023 -
During the third quarter, entered into an eleven-year, non-recourse mortgage note for
$375.0 million . The mortgage note bears interest at a fixed rate of 5.90% and matures onAugust 10, 2034 -
As of the date of this release, the company had approximately
$2.2 billion of total liquidity comprised of approximately$1.1 billion of cash and short-term investments and approximately$1.1 billion available under the unsecured revolving credit facility
Dividend
-
The company’s Board of Directors (the “Board”) declared and paid a regular quarterly cash dividend on its common stock of
$0.54 per share, equivalent to an annual rate of$2.16
Sustainability and Corporate Social Responsibility
- Achieved carbon neutral operations across the portfolio for the fourth consecutive year
- On-site solar at company properties has the capacity to generate over six megawatts of clean electricity, which is equivalent to the annual electricity use of over 1,200 homes
-
Listed on
U.S. EPA’s National Top 100 List of largest green power users - For the eighth consecutive year, awarded the ENERGY STAR Partner of the Year Sustained Excellence Award
-
Named the GRESB Regional Sector Leader in the
Americas for Development (Diversified), earning the highly competitive GRESB 5 Star designation - For the fifth consecutive year, included in Bloomberg’s Gender Equality Index
Recent Developments
-
On
January 12, 2024 , completed a public offering of$400.0 million of 12-year unsecured senior notes at an interest rate of 6.250% dueJanuary 2036 -
On
January 21, 2024 ,John Kilroy retired as Chief Executive Officer (“CEO”) and effectiveJanuary 22, 2024 ,Angela Aman assumed the CEO role and joined the Board.John Kilroy will serve as an advisor through the end of 2024 and will remain Chair of the Board through his current term
Net Income Available to Common Stockholders / FFO Guidance and Outlook
The company is providing Nareit-defined FFO per diluted share guidance for the full year 2024 of
|
|
|
|
|
|
||||
|
|
Full Year 2024 Range |
|
||||||
|
|
Low End |
|
High End |
|
||||
|
|
$ and shares/units in thousands, except per share/unit amounts |
|
||||||
|
Net income available to common stockholders per share - diluted |
$ |
1.45 |
|
|
$ |
1.61 |
|
|
|
|
|
|
|
|
||||
|
Weighted average common shares outstanding - diluted (1) |
|
118,000 |
|
|
|
118,000 |
|
|
|
|
|
|
|
|
||||
|
Net income available to common stockholders |
$ |
171,000 |
|
|
$ |
190,000 |
|
|
|
Adjustments: |
|
|
|
|
||||
|
Net income attributable to noncontrolling common units of the |
|
1,900 |
|
|
|
2,000 |
|
|
|
Net income attributable to noncontrolling interests in consolidated property partnerships |
|
20,500 |
|
|
|
21,000 |
|
|
|
Depreciation and amortization of real estate assets |
|
330,000 |
|
|
|
330,000 |
|
|
|
Gains on sales of depreciable real estate |
|
— |
|
|
|
— |
|
|
|
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships |
|
(30,000 |
) |
|
|
(32,000 |
) |
|
|
Funds From Operations (2) |
$ |
493,400 |
|
|
$ |
511,000 |
|
|
|
|
|
|
|
|
||||
|
Weighted average common shares/units outstanding – diluted (3) |
|
120,250 |
|
|
|
120,250 |
|
|
|
|
|
|
|
|
||||
|
Funds From Operations per common share/unit – diluted (3) |
$ |
4.10 |
|
|
$ |
4.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Assumptions |
|
2023 Actuals |
|
2024 Assumptions |
|
|
Change in same store cash NOI (4) |
|
4.4% |
|
(4.0%) to (6.0%) |
|
|
Average full year occupancy |
|
87.3% |
|
82.5% to 84.0% |
|
|
General and administrative expenses |
|
|
|
|
|
|
Total development spending |
|
|
|
|
|
|
Weighted average common shares/units outstanding – diluted (in thousands) (3) |
|
119,241 |
|
120,250 |
|
|
|
|
|
|
|
|
________________________
(1) |
Calculated based on estimated weighted average shares outstanding, including non-participating share-based awards. |
|
(2) |
See management statement for Funds From Operations at end of release. |
|
(3) |
Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, and the dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders. |
|
(4) |
See management statement for Same Store Cash Net Operating Income on page 33 of our Supplemental Financial Report furnished on Form 8-K with this press release. |
The company’s guidance estimates for the full year 2024, and the reconciliation of net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this press release, reflect management’s views on current and future market conditions, including assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this press release. These guidance estimates do not include the impact on the company’s operating results from potential future acquisitions, dispositions (including any associated gains or losses), capital markets activity, impairment charges or any events outside of the company’s control, as the timing and magnitude of any such events are not known at the time the company provides guidance. There can be no assurance that the company’s actual results will not differ materially from these estimates.
Conference Call and Audio Webcast
The company’s management will discuss fourth quarter results and the current business environment during the company’s
About
The company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects.
As of
A Leader in Sustainability and Commitment to Corporate Social Responsibility
Kilroy has a longstanding commitment to sustainability and continues to be a recognized leader in our sector. For over a decade, the company and its sustainability initiatives have been recognized with numerous honors, including earning the GRESB five star rating and being named a sector and regional leader in the
Kilroy is proud to have achieved carbon neutral operations across our portfolio since 2020. The company also has a longstanding commitment to maintain high levels of LEED, Fitwel and ENERGY STAR certifications across the portfolio.
A significant part of the company’s foundation is its commitment to enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. For the fifth year in a row, the company has been named to Bloomberg’s Gender Equality Index, which recognizes companies committed to supporting gender equality through policy development, representation, and transparency.
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 or implied in the forward-looking statements, and you should not rely on the 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 the forward-looking statements, including, among others: global market and general economic conditions, including periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of
|
|||||||||||||
SUMMARY OF QUARTERLY RESULTS |
|||||||||||||
(unaudited; in thousands, except per share data) |
|||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
Revenues |
$ |
269,016 |
|
$ |
284,344 |
|
$ |
1,129,694 |
|
|
$ |
1,096,987 |
|
|
|
|
|
|
|
|
|
||||||
Net income available to common stockholders |
$ |
47,284 |
|
$ |
52,625 |
|
$ |
212,241 |
|
|
$ |
232,615 |
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding – basic |
|
117,240 |
|
|
116,878 |
|
|
117,160 |
|
|
|
116,807 |
|
Weighted average common shares outstanding – diluted |
|
117,816 |
|
|
117,389 |
|
|
117,506 |
|
|
|
117,220 |
|
|
|
|
|
|
|
|
|
||||||
Net income available to common stockholders per share – basic |
$ |
0.40 |
|
$ |
0.45 |
|
$ |
1.80 |
|
|
$ |
1.98 |
|
Net income available to common stockholders per share – diluted |
$ |
0.40 |
|
$ |
0.45 |
|
$ |
1.80 |
|
|
$ |
1.97 |
|
|
|
|
|
|
|
|
|
||||||
Funds From Operations (1)(2) |
$ |
129,257 |
|
$ |
139,855 |
|
$ |
551,116 |
|
|
$ |
556,631 |
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares/units outstanding – basic (3) |
|
118,896 |
|
|
118,568 |
|
|
118,895 |
|
|
|
118,586 |
|
Weighted average common shares/units outstanding – diluted (4) |
|
119,473 |
|
|
119,079 |
|
|
119,241 |
|
|
|
118,999 |
|
|
|
|
|
|
|
|
|
||||||
Funds From Operations per common share/unit – basic (2) |
$ |
1.09 |
|
$ |
1.18 |
|
$ |
4.64 |
|
|
$ |
4.69 |
|
Funds From Operations per common share/unit – diluted (2) |
$ |
1.08 |
|
$ |
1.17 |
|
$ |
4.62 |
|
|
$ |
4.68 |
|
|
|
|
|
|
|
|
|
||||||
Common shares outstanding at end of period |
|
|
|
|
|
117,240 |
|
|
|
116,878 |
|
||
Common partnership units outstanding at end of period |
|
|
|
|
|
1,151 |
|
|
|
1,151 |
|
||
Total common shares and units outstanding at end of period |
|
|
|
|
|
118,391 |
|
|
|
118,029 |
|
||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
Stabilized office portfolio occupancy rates: (5) |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
79.0 |
% |
|
|
85.2 |
% |
||
|
|
|
|
|
|
88.6 |
% |
|
|
86.2 |
% |
||
|
|
|
|
|
|
91.0 |
% |
|
|
95.5 |
% |
||
|
|
|
|
|
|
83.4 |
% |
|
|
97.7 |
% |
||
|
|
|
|
|
|
64.9 |
% |
|
|
— |
% |
||
Weighted average total |
|
|
|
|
|
85.0 |
% |
|
|
91.6 |
% |
||
|
|
|
|
|
|
|
|
||||||
Total square feet of stabilized office properties owned at end of period: (5) |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
4,345 |
|
|
|
4,332 |
|
||
|
|
|
|
|
|
2,770 |
|
|
|
2,698 |
|
||
|
|
|
|
|
|
6,170 |
|
|
|
6,164 |
|
||
|
|
|
|
|
|
3,000 |
|
|
|
3,000 |
|
||
|
|
|
|
|
|
759 |
|
|
|
— |
|
||
Total |
|
|
|
|
|
17,044 |
|
|
|
16,194 |
|
________________________
(1) |
Reconciliation of Net income available to common stockholders to Funds From Operations available to common stockholders and unitholders and management statement on Funds From Operations are included after the Consolidated Statements of Operations. |
|
(2) |
Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders. |
|
(3) |
Calculated based on weighted average shares outstanding, including participating share-based awards (i.e. nonvested stock and certain time-based restricted stock units) and assuming the exchange of all common limited partnership units outstanding. |
|
(4) |
Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. |
|
(5) |
Occupancy percentages and total square feet reported are based on the company’s stabilized office portfolio for the periods presented. |
|
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(unaudited; in thousands) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
REAL ESTATE ASSETS: |
|
|
|
||||
Land and improvements |
$ |
1,743,170 |
|
|
$ |
1,738,242 |
|
Buildings and improvements |
|
8,463,674 |
|
|
|
8,302,081 |
|
Undeveloped land and construction in progress |
|
2,034,804 |
|
|
|
1,691,860 |
|
Total real estate assets held for investment |
|
12,241,648 |
|
|
|
11,732,183 |
|
Accumulated depreciation and amortization |
|
(2,518,304 |
) |
|
|
(2,218,710 |
) |
Total real estate assets held for investment, net |
|
9,723,344 |
|
|
|
9,513,473 |
|
|
|
|
|
||||
Cash and cash equivalents |
|
510,163 |
|
|
|
347,379 |
|
Marketable securities |
|
284,670 |
|
|
|
23,547 |
|
Current receivables, net |
|
13,609 |
|
|
|
20,583 |
|
Deferred rent receivables, net |
|
460,979 |
|
|
|
452,200 |
|
Deferred leasing costs and acquisition-related intangible assets, net |
|
229,705 |
|
|
|
250,846 |
|
Right of use ground lease assets |
|
125,506 |
|
|
|
126,530 |
|
Prepaid expenses and other assets, net |
|
53,069 |
|
|
|
62,429 |
|
TOTAL ASSETS |
$ |
11,401,045 |
|
|
$ |
10,796,987 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
LIABILITIES: |
|
|
|
||||
Secured debt, net |
$ |
603,225 |
|
|
$ |
242,938 |
|
Unsecured debt, net |
|
4,325,153 |
|
|
|
4,020,058 |
|
Accounts payable, accrued expenses and other liabilities |
|
371,179 |
|
|
|
392,360 |
|
Ground lease liabilities |
|
124,353 |
|
|
|
124,994 |
|
Accrued dividends and distributions |
|
64,440 |
|
|
|
64,285 |
|
Deferred revenue and acquisition-related intangible liabilities, net |
|
173,638 |
|
|
|
195,959 |
|
Rents received in advance and tenant security deposits |
|
79,364 |
|
|
|
81,432 |
|
Total liabilities |
|
5,741,352 |
|
|
|
5,122,026 |
|
|
|
|
|
||||
EQUITY: |
|
|
|
||||
Stockholders’ Equity |
|
|
|
||||
Common stock |
|
1,173 |
|
|
|
1,169 |
|
Additional paid-in capital |
|
5,205,839 |
|
|
|
5,170,760 |
|
Retained earnings |
|
221,149 |
|
|
|
265,118 |
|
Total stockholders’ equity |
|
5,428,161 |
|
|
|
5,437,047 |
|
Noncontrolling Interests |
|
|
|
||||
Common units of the |
|
53,275 |
|
|
|
53,524 |
|
Noncontrolling interests in consolidated property partnerships |
|
178,257 |
|
|
|
184,390 |
|
Total noncontrolling interests |
|
231,532 |
|
|
|
237,914 |
|
Total equity |
|
5,659,693 |
|
|
|
5,674,961 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
11,401,045 |
|
|
$ |
10,796,987 |
|
|
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(unaudited; in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
REVENUES |
|
|
|
|
|
|
|
||||||||
Rental income |
$ |
265,643 |
|
|
$ |
281,688 |
|
|
$ |
1,117,737 |
|
|
$ |
1,086,018 |
|
Other property income |
|
3,373 |
|
|
|
2,656 |
|
|
|
11,957 |
|
|
|
10,969 |
|
Total revenues |
|
269,016 |
|
|
|
284,344 |
|
|
|
1,129,694 |
|
|
|
1,096,987 |
|
|
|
|
|
|
|
|
|
||||||||
EXPENSES |
|
|
|
|
|
|
|
||||||||
Property expenses |
|
60,731 |
|
|
|
55,323 |
|
|
|
228,964 |
|
|
|
202,744 |
|
Real estate taxes |
|
21,000 |
|
|
|
27,151 |
|
|
|
105,868 |
|
|
|
105,869 |
|
Ground leases |
|
2,560 |
|
|
|
2,092 |
|
|
|
9,732 |
|
|
|
7,565 |
|
General and administrative expenses (1) |
|
22,078 |
|
|
|
25,217 |
|
|
|
93,434 |
|
|
|
93,642 |
|
Leasing costs |
|
1,956 |
|
|
|
1,404 |
|
|
|
6,506 |
|
|
|
4,879 |
|
Depreciation and amortization |
|
86,016 |
|
|
|
91,396 |
|
|
|
355,278 |
|
|
|
357,611 |
|
Total expenses |
|
194,341 |
|
|
|
202,583 |
|
|
|
799,782 |
|
|
|
772,310 |
|
|
|
|
|
|
|
|
|
||||||||
OTHER INCOME (EXPENSES) |
|
|
|
|
|
|
|
||||||||
Interest and other income, net |
|
10,696 |
|
|
|
1,264 |
|
|
|
22,592 |
|
|
|
1,765 |
|
Interest expense |
|
(32,325 |
) |
|
|
(23,550 |
) |
|
|
(114,216 |
) |
|
|
(84,278 |
) |
Gain on sale of depreciable operating property |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,329 |
|
Total other expenses |
|
(21,629 |
) |
|
|
(22,286 |
) |
|
|
(91,624 |
) |
|
|
(65,184 |
) |
|
|
|
|
|
|
|
|
||||||||
NET INCOME |
|
53,046 |
|
|
|
59,475 |
|
|
|
238,288 |
|
|
|
259,493 |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling common units of the |
|
(471 |
) |
|
|
(588 |
) |
|
|
(2,083 |
) |
|
|
(2,283 |
) |
Net income attributable to noncontrolling interests in consolidated property partnerships |
|
(5,291 |
) |
|
|
(6,262 |
) |
|
|
(23,964 |
) |
|
|
(24,595 |
) |
Total income attributable to noncontrolling interests |
|
(5,762 |
) |
|
|
(6,850 |
) |
|
|
(26,047 |
) |
|
|
(26,878 |
) |
|
|
|
|
|
|
|
|
||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |
$ |
47,284 |
|
|
$ |
52,625 |
|
|
$ |
212,241 |
|
|
$ |
232,615 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding – basic |
|
117,240 |
|
|
|
116,878 |
|
|
|
117,160 |
|
|
|
116,807 |
|
Weighted average common shares outstanding – diluted |
|
117,816 |
|
|
|
117,389 |
|
|
|
117,506 |
|
|
|
117,220 |
|
|
|
|
|
|
|
|
|
||||||||
Net income available to common stockholders per share – basic |
$ |
0.40 |
|
|
$ |
0.45 |
|
|
$ |
1.80 |
|
|
$ |
1.98 |
|
Net income available to common stockholders per share – diluted |
$ |
0.40 |
|
|
$ |
0.45 |
|
|
$ |
1.80 |
|
|
$ |
1.97 |
|
________________________
(1) |
The three months and year ended |
|
|||||||||||||||
FUNDS FROM OPERATIONS |
|||||||||||||||
(unaudited; in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income available to common stockholders |
$ |
47,284 |
|
|
$ |
52,625 |
|
|
$ |
212,241 |
|
|
$ |
232,615 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling common units of the |
|
471 |
|
|
|
588 |
|
|
|
2,083 |
|
|
|
2,283 |
|
Net income attributable to noncontrolling interests in consolidated property partnerships |
|
5,291 |
|
|
|
6,262 |
|
|
|
23,964 |
|
|
|
24,595 |
|
Depreciation and amortization of real estate assets |
|
84,402 |
|
|
|
89,536 |
|
|
|
348,064 |
|
|
|
350,665 |
|
Gain on sale of depreciable real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(17,329 |
) |
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships |
|
(8,191 |
) |
|
|
(9,156 |
) |
|
|
(35,236 |
) |
|
|
(36,198 |
) |
Funds From Operations(1)(2)(3) |
$ |
129,257 |
|
|
$ |
139,855 |
|
|
$ |
551,116 |
|
|
$ |
556,631 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares/units outstanding – basic (4) |
|
118,896 |
|
|
|
118,568 |
|
|
|
118,895 |
|
|
|
118,586 |
|
Weighted average common shares/units outstanding – diluted (5) |
|
119,473 |
|
|
|
119,079 |
|
|
|
119,241 |
|
|
|
118,999 |
|
|
|
|
|
|
|
|
|
||||||||
Funds From Operations per common share/unit – basic (2) |
$ |
1.09 |
|
|
$ |
1.18 |
|
|
$ |
4.64 |
|
|
$ |
4.69 |
|
Funds From Operations per common share/unit – diluted (2) |
$ |
1.08 |
|
|
$ |
1.17 |
|
|
$ |
4.62 |
|
|
$ |
4.68 |
|
________________________
(1) |
We calculate Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White Paper on FFO approved by the |
|
We believe that FFO is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs. |
||
Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide. |
||
However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations. |
||
(2) |
Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders. |
|
(3) |
FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of |
|
(4) |
Calculated based on weighted average shares outstanding, including participating share-based awards (i.e. certain time-based restricted stock units) and assuming the exchange of all common limited partnership units outstanding. |
|
(5) |
Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240205426452/en/
Executive Vice President,
Chief Financial Officer
and Chief Investment Officer
(310) 481-8587
or
Senior Vice President,
Investor Relations & Capital Markets
(415) 778-5678
Source: