Kilroy Realty Corp. (KRC), a real estate investment trust (:REIT), has recently announced that one of its operating subsidiaries, Kilroy Realty, L.P, has secured a non-recourse mortgage loan worth $97 million. The 15-year loan bears an interest rate of 4.48% and is scheduled to mature on July 1, 2027.
The loan is secured by office properties located at 2211 Michelson Drive in Irvine, California and 2100 and 2110 Colorado Avenue in Santa Monica, California. The net proceeds from the loan will be used to repay down debt under its credit facility.
Kilroy Realty remains focused on maintaining a strong balance sheet and healthy liquidity. During the first quarter of 2012, Kilroy Realty completed a public offering of 9.5 million shares at $42.00 each, generating net proceeds of approximately $382.1 million. The company used the net proceeds to pay down debt under its revolving credit facility and fund acquisitions
Moreover, Kilroy Realty closed a $150 million unsecured term loan facility in the first quarter of 2012 that bears an interest at LIBOR plus 1.75% and matures on March 29, 2016. The proceeds from the loan were utilized to pay off the company's 3.25% exchangeable senior notes due April 15, 2012.
Kilroy Realty invests, develops, and manages real estate properties across the U.S. The company focuses on maintaining a conservative balance sheet, and funds acquisitions and development activities through available cash, debt or equity offering.
Kilroy Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We have a long-term Neutral recommendation on the stock.One of its competitors, MPG Office Trust, Inc (MPG) holds a Zacks #1 Rank which translates into a short term Strong Buy rating
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