Kilroy Realty Corp. (NYSE:KRC) Q3 2016 Earnings Conference Call - Final Transcript

Oct 27, 2016 • 01:00 pm ET


Kilroy Realty Corp. (NYSE:KRC) Q3 2016 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Third Quarter 2016 Kilroy Realty Corp Earnings Conference Call. My name is Derrick and I will be your operator for today. At this time, all participants are in a listen-only mode. And later we will facilitate a question-and-answer session towards the end of the conference. [Operator Instructions]. As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the conference over to your Mr. Tyler Rose, Executive Vice President and Chief Financial Officer. Please proceed.

Tyler Rose

Good morning, everyone. Thank you for joining us. On the call with me today are John Kilroy, Jeff Hawken, David Simon, Heidi Roth, Mike Sanford, Rob Paratte, Tracy Murphy and Michelle Ngo.

At the outset, I need to say that some of the information we will be discussing is forward-looking in nature. Please refer to our supplemental package for a statement regarding the forward-looking information in this call and in the supplemental. This call is being telecast live on our website and will be available for replay for the next eight days both by phone and over the Internet. Our earnings release and supplemental packages have been filed on a Form 8-K with the SEC and both are also available on our website.

John will start the call with a review of the third quarter, Jeff will discuss conditions in our key markets. I'll finish up with financial highlights and review of our updated earnings guidance for 2016, then we'll be happy to take your questions. John.

John Kilroy

Thank you, Tyler and hello everybody and thank you for joining us today. We've made substantial progress in all areas of the company since our last year. Here are the highlights.

On the development front, as we reported last night, we saw a long term commitments with high quality, credit tenants for over 1 million square feet of space at our development projects. This includes commitments of both 100 Hooper and the Exchange which on a combined basis are now over 80% committed. We've said at the past that we wouldn't start construction on 100 Hooper until we made leasing progress on either the Exchange or Hopper. Since we have now made substantial progress on both projects, we will begin construction later this quarter on 100 Hopper.

As a reminder is the 4,000 square foot office in PDR project in the SOMA neighborhood of Showplace Square. The total estimated investment is approximately $270 million.

Moving south the Hollywood, we signed leases at the recently completed office component of Columbia Square covering 71,000 square feet taking the project to 84% leased. This includes a 31,000 square foot expansion agreement with Viacom, increasing its total lease commitment to 210,000 square feet and a 40,000 square foot lease with a global apparel company.

We are also seeing strong interest in our Columbia Square Residential Tower. We expect leasing to accelerate even more as we complete construction of the amenities for this space including the rooftop and ground