Kilroy Realty Corp. (NYSE:KRC) Q4 2017 Earnings Conference Call Transcript
Feb 01, 2018 • 01:00 pm ET
Good day, and welcome to the Fourth Quarter 2017 Kilroy Realty Corporation Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Tyler Rose, Executive Vice President and Chief Financial Officer. Please go ahead.
Tyler H. Rose
Good morning, everyone. Thank you for joining us. On the call with me today are John Kilroy, Jeff Hawken, David Simon, Heidi Roth, Tracy Murphy, Rob Paratte, Elliot Trencher 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 package 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 fourth quarter and the year. Jeff will discuss conditions in our key markets. I will finish up with financial highlights and review of our initial 2018 earnings guidance that was published yesterday in our earnings release. Then we will be happy to take your questions.
Thank you, Tyler, and hello, everyone. Thank you for joining us today. I will address four topics in my comments this morning. First, a review of 2017, second an update on our key development projects; third, our recently completed acquisition of Oyster Point Tech Park; and fourth, goals and objectives for 2018.
2017 was another year of strong performance at KRC. We delivered excellent results across all areas of our business and continued to create value in our operating and development platforms that will drive future earnings and dividend growth.
We signed approximately 2.9 million square feet of leases, driving occupancy in our stabilized portfolio to 95.2% and securing long-term high-quality tenants for more than 60% of our under construction office projects. We stabilized Columbia Square. The property's office space is now 100% leased. We did not make any building acquisitions in 2017, and instead focused on creating value through our development pipeline in the disposition of non-core assets.
We commenced construction on 333 Dexter, and approximately $400 million office project located in the South Lake Union submarket of Seattle, one of the country's best performing submarkets, where Class A vacancy is just 4.1%. We acquired a land site in the Little Italy section of San Diego, a terrific urban neighborhood that offers the potential for significant value creation.
We generated $187 million through our capital recycling program, selling 11 non-core properties and a land site in San Diego. We increased our dividend another 13.3%, bringing the two-year increase to 21%. We continue to strengthen our