Kilroy Realty Corporation (KRC) Q3 2025 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:05.919 strategic importance of well-located real estate in concentrated tech and biotech hubs. 00:00:05.919 -- 00:00:08.743 Nowhere is this more evident than in the Bay Area. 00:00:08.743 -- 00:00:12.769 In the city of San Francisco alone, office demand has reached a post-pandemic high of 00:00:12.769 -- 00:00:17.536 nearly 9 million square feet, up from approximately 7 million square feet last quarter, 00:00:17.536 -- 00:00:22.042 with much of this demand being driven by AI and other technology companies. 00:00:22.042 -- 00:00:25.868 Importantly, the growth in demand statistics has persisted even as the pace of lease 00:00:25.868 -- 00:00:30.313 executions has significantly increased. with San Francisco leading all U.S. 00:00:30.313 -- 00:00:34.399 metros in office leasing growth over the last 12 months. 00:00:34.399 -- 00:00:38.265 Against this backdrop, I'm pleased to report another strong quarter of execution across 00:00:38.265 -- 00:00:43.333 our portfolio. During the quarter, we signed over 550,000 square feet of new and renewal 00:00:43.333 -- 00:00:48.120 leases, marking our highest third quarter of leasing activity and our strongest year-to-date 00:00:48.120 -- 00:00:50.744 performance in six years. 00:00:50.744 -- 00:00:54.930 Leasing momentum was robust in San Francisco, with activity in the south of market or 00:00:54.930 -- 00:01:00.191 SOMA sub-market particularly notable. Our SOMA assets continue to outperform, 00:01:00.191 -- 00:01:05.116 with over 95,000 square feet of new and renewal leases executed this quarter and a growing 00:01:05.116 -- 00:01:11.821 forward pipeline, with tour activity in our SOMA assets up 170% year over year. 00:01:12.384 -- 00:01:16.588 At 201 3rd Street, we signed a full floor lease with Tubi, ...