Kilroy Realty Corporation · NYSE:KRC
Kilroy Realty — Debt Investor Presentation (May 2023)
24 slides from Kilroy Realty's debt investor presentation, May 2023
Slide 1: Fixed Income Investor Update May 2023
KILROY REALTY Fixed Income Investor Update May 2023 KILROY REALTY | 0 One Paseo | San Diego ,CA
Slide 2: Kilroy At A Glance
PLATFORM Kilroy At A Glance HIGHLIGHTS Seattle (3.0 MSF) Austin (734 KSF) Kilroy’s Strategic Pillars Best-in-Class Real Estate in the Most Dynamic Markets San Francisco (3.4 MSF) Disciplined and Experienced Other Bay Area (3.7 MSF) Approach to Capital Allocation Los Angeles (4.3 MSF) Fortress Balanc
Slide 3: Company Overview
PLATFORM Company Overview HIGHLIGHTS A Premier, Publicly Traded Developer, Owner, and Manager of Class A Properties on the West Coast and Austin 16.2M RSF Owned $700M $1.6B 1,000+ LTM EBITDA Total Current Liquidity Residential Units $4.30-$4.50 7.4% Baa2 / BBB 2023E Funds From Operations (1) Dividen
Slide 4: Positioned to Sustain Long-Term Value Creation
PLATFORM Positioned to Sustain Long-Term Value Creation HIGHLIGHTS DEFENSE / RISK MITIGATION STATUS QUO LONGEVITY GROWTH INITIATIVES Strong Balance Best in Class DEFENSIVE Development Sheet Portfolio & Team Pipeline 5.7x net debt to EBITDA (1) ~92% leased ~55% of development pipeline comprised
Slide 5: Company Transformation
PLATFORM Company Transformation HIGHLIGHTS Post-Recession Today(1) (December 2009) (May 2023) Austin Los Orange County 4% Angeles Los Angeles 15% 12% Seattle 32% 16% San Diego 14% San Diego 56% Other Bay Area San Francisco 26% 25% Total NOI: ~$205M // ~$1.3B Market Cap Total NOI: ~$950M // ~$3.2B Ma
Slide 6: Company Transformation
PLATFORM Company Transformation HIGHLIGHTS Post-Recession Today(1) (December 2009) (May 2023) Non-Office 15% Mixed Use 10% Office 68% Life Science 22% Office 85% Average Age of Portfolio: ~15 Years Average Age of Portfolio: ~11 Years Successfully Diversified Our NOI Composition While Reducing Our Av
Slide 7: High Quality, Well Capitalized Tenant Roster
PLATFORM High Quality, Well Capitalized Tenant Roster HIGHLIGHTS Platform Tenant Roster is Over 50% Investment Grade Rated With 98% of Tenant Rent Collected (1) TENANT BY INDUSTRY BREAKDOWN Tenant Diversification Legend Private Public Company 28% Public Company; Investment Grade Private Company; Inv
Slide 8: Top Fifteen Tenants
PLATFORM Top Fifteen Tenants HIGHLIGHTS Tenant Publicly Traded MCAP ($B) Rating % of Total ABR (1) Fortune 50 Publicly-Traded Company NASDAQ $2,688 AA+ 4.9% 14 of Top 15 Tenants GM Cruise, LLC NYSE $46 BBB 4.4% Are Publicly Listed Stripe, Inc. -- -- -- 4.1% Amazon.com NASDAQ $1,076 AA 3.9% Salesfor
Slide 9: Diversified Debt Capital Stack With Ample Covenant Flexibility
PLATFORM Diversified Debt Capital Stack With Ample Covenant Flexibility HIGHLIGHTS Unsecured Bank Facilities and Private Placement Notes Unsecured Senior Notes Actual Actual Covenants Covenant Levels Performance as Covenants Covenant Levels Performance as of 03/31/2023 of 03/31/2023 Total Debt to To
Slide 10: Appendix
APPENDIX KILROY REALTY | 9 2100 Kettner | Little Italy, San Diego
Slide 11: Benchmarking Average Age
APPENDIX Benchmarking Average Age Kilroy Has the Youngest and Most Modern Portfolio Among Office REITs 73 48 45 46 Peer Office 34 34 REIT Average 25 25 25 23 20 15 11 KRC Bi-Coastal Sunbelt Sunbelt West-Coast Bi-Coastal Sunbelt West-Coast West-Coast Bi-Coastal East-Coast East-Coast East-Coast REIT R
Slide 12: Walk Score by Market
APPENDIX Walk Score by Market KRC Properties Are More Amenitized and Centralized Than Peers Resulting in Higher Walk Scores San Diego Los Angeles San Francisco / Bay Seattle Austin Area 100 +30 -20 +8 +7 +45 80 60 40 20 0 San Diego Los Angeles San Francisco Seattle Austin Source: Walkscore.com KILRO
Slide 13: Strong Capital Allocation Track Record
APPENDIX Strong Capital Allocation Track Record Since 2015: Dispositions Acquisitions Developments Dollar Amount $3.1B $1.9B $4.4B Average Age (1) ~12 years ~10 years ~3 years Walk Score: 49 Walk Score: 83 Walk Score: 81 Amenitized Locations Transit Score: 41 Transit Score: 68 Transit Score: 57 Cape
Slide 14: In-Process Development
APPENDIX In-Process Development Office Life Science ~$750M Investment ~$1B Investment Indeed Tower | CBD, Austin 4690 Executive Drive | UTC, San Diego KOP Phase 2 | Oyster Point, South San Francisco 4400 Bohannon Drive | Menlo Park, San Francisco 9514 Towne Centre Drive | UTC, San Diego Remaining De
Slide 15: Liquidity Optionality
APPENDIX Liquidity Optionality Liquidity Takeaways Uses – Development Spending Total 2023 Spend • 2023 development spend funded with cash on hand and borrowings on term loan Development Spending (1) $375M TOTAL $375M • Beyond 2023: Full availability under revolver Sources and access to capital marke
Slide 16: Leverage Sensitivity
APPENDIX Leverage Sensitivity Pro Forma for Completion of In-process Development Debt Funded, Debt Funded, Full Year 2022 Partially Stabilized Fully Stabilized (32% Leased) (100% Leased) 6.8x 6.9 For every $100M of disposition proceeds (1) utilized to fund development, lowers leverage by 6.1x ~0.1x.
Slide 17: Staggered Debt Maturities
APPENDIX Staggered Debt Maturities Debt Maturity Schedule $350 $160 $475 $500 $425 $83 $425 $450 $400 $400 $350 $250 $175 (1) 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Unsecured Debt (Green Bonds) Unsecured Debt Secured Debt Term Loan KRC Has No Maturities Until December 2024 and ~95% o
Slide 18: A Dynamic, Tenured and Experienced Management Team
APPENDIX A Dynamic, Tenured and Experienced Management Team JOHN KILROY JUSTIN SMART ROB PARATTE ELIOTT TRENCHER HEIDI ROTH CEO, Chairman President EVP, CLO & Senior EVP, CIO & CFO EVP, CAO 56 Years 23 Years Advisor to the Chairman 6 Years 26 Years 9 Years JOHN OSMOND MERRYL WERBER LAUREN STADLER BI
Slide 19: Sustainability Achievements
APPENDIX Sustainability Achievements Newsweek US EPA Green Power Green Lease Leader Dow Jones Sustainability Listed on America’s Most Responsible Partnership Leader, 2014-2022 World Index Companies, 2020-2022 Gold Level, 2018-2022 Top 100 Green Power Purchasers, 2021-2022 Member, 2017-2022 Energy St
Slide 20: Return to Office Updates
APPENDIX Return to Office Updates Recent Announcements 5 days per week in the office following Elon 3 days a week starting May 2023 Musk’s acquisition 3 days a week starting May 2023 At least 3 days a week as of February 2023 Managing directors 5 days a week starting Sales staff near the office in 2
Slide 21: Layoffs in Perspective
APPENDIX Layoffs in Perspective Adjusting for the Layoffs, the Current Headcount Among the Below Companies Remains Higher Than Pre-COVID Numbers, and in Most Cases, Substantially Higher Change in Employment (Current vs 2019 YE) +47% +91% +20% +47% +4% +40 +105% +9% +16% +38% (1) 2019 YE Employee Cou
Slide 22: Venture Capital Funding Levels
APPENDIX Venture Capital Funding Levels West Coast Commands 52% of Total Venture Funding West Coast Venture Capital Trends 55% 57% 52% 54% 52% 50% 50% 50% 47% $173.1B $113.6B $93.1B $83.3B $77.2B $75.8B $45.5B $45.9B $45.1B (1) 2015 2016 2017 2018 2019 2020 2021 2022 2023 Capital Invested % of Total
Slide 23: Where Innovation Works
Where Innovation Works KILROY REALTY | 22
Slide 24: Disclaimer
DISCLAIMER This presentation 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,
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