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Ryan Specialty Appoints Francesca Cornelli, Dean of Northwestern University’s Kellogg School of Management, to Board of Directors

CHICAGO–(BUSINESS WIRE)–
Ryan Specialty Holdings, Inc. (NYSE: RYAN), a leading international specialty insurance firm, today announced that Francesca Cornelli, Dean of Northwestern University’s Kellogg School of Management, has been appointed to its Board of Directors and will serve as a member of its Audit Committee, effective July 31, 2023.

“We are excited to welcome Francesca to Ryan Specialty’s Board of Directors,” said Patrick G. Ryan, Chairman of the Board of Directors. “Francesca’s knowledge and extensive background in international finance, corporate governance and private equity markets will provide a global perspective to our firm. Further, not only is Francesca the Dean of Kellogg, she is a professor of finance, holds the Donald P. Jacobs Chair of Finance at the school, and brings with her highly relevant board experience. We are looking forward to embracing Francesca’s contributions to our Board and Ryan Specialty as a whole.”

“I am excited to join the Board of Ryan Specialty,” added Dr. Cornelli. “The firm is in a high-growth phase with many different opportunities in front of it, and I have always had a special interest in the insurance sector. I’m looking forward to working alongside the esteemed Board members, particularly during this very challenging macroeconomic cycle, to guide and advise this dynamic firm.”

Dr. Cornelli has been the Dean of Kellogg School of Management since 2019. Previously, she was a professor of finance and deputy dean at London Business School. Dr. Cornelli directed and advanced the highly regarded Private Equity Institute of London Business School, building a bridge between academia and practice by partnering with private equity leaders in London, alumni and top academics in the field. Dr. Cornelli has published several papers in the major finance and economics journals, and she gives regular talks at major conferences and universities. Dr. Cornelli is a research fellow at the Center for Economic and Policy Research, and previously served as a director of the American Finance Association. In January 2016, Dr. Cornelli helped create and became a board member of AFFECT, a committee of the American Finance Association designed to promote the advancement of women academics in the field of finance. She serves on several boards, including Edizione, GSM Grosvenor Inc., GCP, Civic Consulting Alliance and Lyric Opera of Chicago. Specific to insurance, Dr. Cornelli also served on the board of Swiss Re International and Swiss Re Europe from 2013 to 2019.

For more information about Ryan Specialty’s corporate governance practices and Board of Directors, please click here.

About Ryan Specialty

Founded in 2010, Ryan Specialty (NYSE: RYAN) is a service provider of specialty products and solutions for insurance brokers, agents and carriers. Ryan Specialty provides distribution, underwriting, product development, administration and risk management services by acting as a wholesale broker and a managing underwriter with delegated authority from insurance carriers. Our mission is to provide industry-leading innovative specialty insurance solutions for insurance brokers, agents and carriers. Learn more at ryanspecialty.com.

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Media

Alice Phillips Topping

SVP, Chief Marketing & Communications Officer

Ryan Specialty

[email protected]

(312) 635-5976

Investor Relations

Nicholas Mezick

Director, Investor Relations

Ryan Specialty

[email protected]

(312) 784-6152

KEYWORDS: Illinois United States North America

INDUSTRY KEYWORDS: Insurance Professional Services

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Polished.com Announces Filing of Restated and Delayed Financial Statements and Release of Results for Q1 2023

Filings Position Company to Meet Reporting Obligations and Retain Listing on NYSE American

Provides Estimated Financials for Q2 2023 and Updated Outlook for the Full Year

Secures Amendment to May 2022 Credit Agreement and Maintains Relationship with its Lending Bank

BROOKLYN, N.Y.–(BUSINESS WIRE)–
Polished.com Inc. (NYSE American: POL) (“Polished” or the “Company”) today announced that it is filing all restated and/or delayed financial statements for Fiscal Year 2021 and Fiscal Year 2022 and is filing its results for the first quarter of Fiscal Year 2023. As a result, the Company will be current with its financial reporting obligations and is positioned to retain its listing status on the NYSE American. The Company’s filings and supplemental information can be found on its investor relations website: https://investor.polished.com/financials/sec-filings.

The process of filing amended and delayed financial statements was extensive because it entailed onboarding a new audit firm and the auditing of the previously filed financial reports since the Company’s merger and initial public offering (“IPO”) in 2021. The audit resulted in a restatement of the Fiscal Year 2021 and first quarter of Fiscal Year 2022 results, as well as a reevaluation of the Company’s goodwill associated with the IPO.

Rick Bunka, Chief Executive Officer, commented:

“Since new management joined in October 2022, we have been intensely focused on addressing the findings of the Audit Committee’s 2022 investigation and putting Polished on stronger footing. We have achieved the first round of milestones that include becoming current on financial reporting obligations and positioning the Company’s securities to preserve their listing status. This said, we acknowledge that the unwelcomed events of the past year were disruptive for our business, suppliers, partners, shareholders and warrant holders. Fortunately, reaching initial milestones and remediating past issues will allow the management team to continue its focus on attaining greater stability, producing profitable growth and resuming normalized communication with the market.

Importantly, while the restated performance of the business in Fiscal Year 2022 was extremely disappointing, our first quarter results demonstrate that while operating on reduced volume, the Company can deliver more normalized margins and earnings within the constraints of a difficult consumer spending environment. We intend to spend the rest of this fiscal year establishing a stronger infrastructure, identifying more efficiencies and making sure we remain a destination of choice for customers. By taking the right steps over the duration of 2023, which is a fix-and-rebuild year, we will be well positioned to pursue profitable growth and enhanced value in 2024 and beyond.”

Polished also provided updates on its capital position, outlook and strategic review.

Top Metrics – First Quarter 2023

• Net product sales for the quarter were $95.4 million, compared to $148.7 million in the prior year period.

• Gross profit for the quarter was $21.1 million (22.2% margin), compared to $30.8 million (20.7% margin) in the prior year period.

• Net loss for the quarter was $2.8 million, or $0.03 per diluted common share, compared to net income of $5.8 million, or $0.05 (restated) per diluted common share, in the prior year period.

• Adjusted EBITDA for the quarter was $1.9 million.

Top Metrics – FY 2022

• Net product sales for the year were $534.5 million, compared to $345.7 million for the prior year.

• Gross profit for the year was $89.5 million (16.7% margin), compared to $69.8 million (20.2% margin) for the prior year.

• Net loss for the year was $126 million, or $1.18 per diluted common share, compared to a net loss of $7.6 million, or $0.12 per diluted common share, in the prior year. This was largely driven by factors that include an impairment charge of $109.1 million.

• Adjusted EBITDA for the year was $1.2 million.

Top Metrics – Amended and Restated FY 2021 Results

• Net product sales for the year ended December 31, 2021 were $345.7 million versus previously reported net sales of $362.3 million. The reduction in revenue of $16.6 million comprised the following: (1) an increase in the allowance for sales returns of $7.4 million, (2) revenue of $8.1 million that should be recognized in 2022, and (3) sales tax collections of $1.1 million improperly recognized as revenue.

• Gross profit for the year was $69.8 million versus a previously reported figure of $79.6 million.

• Net loss for the year ended December 31, 2021 was $7.6 million, or $0.12 per diluted common share, versus reported net income of $7.7 million, or $0.10 per diluted common share.

Update on Capital Position, Outlook and Ongoing Review Process

• As of June 30, 2023, the Company had $8.7 million in cash and cash equivalents and $5.6 million in restricted cash relative to $102.8 million in debt. At this time, the Company has sufficient cash to fund its operations and it does not anticipate the need to raise capital to sustain operations.

• The Company has secured an amendment (the “Amended Credit Agreement”) to its May 2022 credit agreement that revises the new EBITDA covenant and minimum liquidity provision. The amendment requires the Company to repay its existing term loan and any revolving loans by August 31, 2024. To help Polished maintain optimal flexibility and liquidity, the Company has started working with an independent financial advisor to explore options for replacing the loan. Additional information pertaining to the Amended Credit Agreement can be found on a Form 10-K that will be filed by the Company with the U.S. Securities and Exchange Commission.

• Due to extended disruptions associated with remediating legacy issues and the significant, unexpected decline in discretionary spending, which has impacted the broader household appliances market, Polished is estimating Net Sales of between $85 million and $90 million and low-single-digit EBITDA margins for the second quarter.
  • The Company expects to generate annualized Net Sales of between $375 million and $400 million and low-single-digit EBITDA margins for the full year.

  • These expectations are as of July 31, 2023, and remain subject to substantial uncertainty. Results are unpredictable and may be materially affected by various factors, such as the economy, inflation, interest rates, regional labor markets, supply chain constraints and other variables.

• The Board of Directors and management continue to work with independent advisors to evaluate strategic alternatives that can maximize value. There is no assurance that this ongoing process will result in any transaction or sale of the Company.

Conference Call

The Company will host an investor conference call at 8:30 a.m. ET on Friday, August 4, 2023 to review its results. The phone number for the investor conference call is 1-844-881-0136 (toll-free) or 1-412-902-6507 (international); please ask to join the Polished Investor Conference Call. This call and all supplemental information can be accessed on the Company’s investor relations site at https://investor.polished.com.

ABOUT POLISHED

Polished is raising the bar, delivering a world-class, white-glove shopping experience for home appliances. From the best product selections from top brands to exceptional customer service, we are simplifying the purchasing process and empowering consumers as we provide a polished experience, from inspiration to installation. A product expert helps customers get inspired and imagine the space they want, then shares fresh ideas, unbiased recommendations and excellent deals to suit the project’s budget and style. The goal is peace of mind when it comes to new appliances. Polished perks include its “Love-It-Or-Return-It” 30-day policy, extended warranties, the ability to arrange for delivery and installation at your convenience and other special offers. Learn more at www.Polished.com.

FORWARD LOOKING STATEMENTS

This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will”, “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond the Company’s control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those described more fully in the section titled “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

NON-GAAP FINANCIAL MEASURES

The Company’s audited consolidated financial statements and unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The Company also provides financial information in this release that was not prepared in accordance with GAAP and should not be considered as an alternative to the information prepared in accordance with GAAP. The Company believes the non-GAAP financial measures presented in this press release will help investors understand the financial condition and operating results of the Company and assess the Company’s future prospects. The Company believes these non-GAAP financial measures, each of which is discussed in greater detail below, are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure.

The Company recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with GAAP. Readers should review the reconciliations below and should not rely on any single financial measure to evaluate our business.

The non-GAAP financial measure used in this press release is adjusted EBITDA. The Company defines adjusted EBITDA as net income before income taxes, depreciation and amortization, financing costs, interest expense, sales tax accrual and one-time non-operational events. Adjusted EBITDA is not calculated in accordance with GAAP and should not be considered an alternative to any financial measure that was calculated under GAAP. Adjusted EBITDA is used to facilitate a comparison of the ordinary, ongoing and customary course of the operations of the combined company on a consistent basis from period to period and provide an additional understanding of factors and trends affecting the business of the Company. Adjusted EBITDA may not be comparable to similarly titled non-GAAP measures used by other companies as other companies may have calculated the measures differently.

The reconciliation of adjusted EBITDA to net income for the Company is provided below (in thousands):

Q1 2023:

	Three Months Ended
	March 31, 2023
Net loss for three months ended March 31, 2023	$	(2,761	)
Depreciation and amortization		1,070
Interest expense		1,882
Income tax expense		104
EBITDA		295
Adjustments
Loss on change in fair value of derivative contract		1,325
Management fee		63
Stock compensation expense		188
ADJUSTED EBITDA	$	1,871

FY 2022:

	Year-Ended
	December 31, 2022
Net loss for year	$	(125,965	)
Depreciation and amortization		11,456
Interest expense		3,421
Income tax benefit		(8,409	)
EBITDA		(119,497	)
Adjustments
Impairment of goodwill and intangible assets		109,140
Loss on settlement of debt		3,240
Estimated penalty and interest for late filing sales tax		2,123
Negotiated settlement of fees related to Appliances Connection Acquisition		1,750
Specific inventory reserves		1,100
Allowance for doubtful accounts		900
Severance payments		613
Sales tax audit findings		400
Fee to re-audit 2021		465
Delaware 405 lawsuit		475
Miscellaneous other items		516
ADJUSTED EBITDA	$	1,225

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230731335825/en/

Investor Relations

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Luxury Construction & Property Finance Professional Services Interior Design Home Goods Retail Residential Building & Real Estate Online Retail

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Posted on July 31, 2023 9:12 pm

Momentus Announces Date of Second Quarter 2023 Financial Results and Conference Call

Momentus Announces Date of Second Quarter 2023 Financial Results and Conference Call

SAN JOSE, Calif.–(BUSINESS WIRE)–
Momentus Inc. (NASDAQ: MNTS) (“Momentus” or the “Company”), a U.S. commercial space company that offers orbital transportation and in-space infrastructure services, will issue a press release containing financial results for the second quarter 2023 following the close of the U.S. markets on Monday, August 14, 2023.

Momentus will host a conference call to discuss the results that day at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). To access the conference call, participants should dial +1 (800) 715-9871 and enter the conference ID number 3108190. International participants should dial +1 (646) 307-1963.

The live audio webcast along with supplemental information will be accessible on the Company’s Investor Relations website at https://investors.momentus.space. A recording of the webcast will also be available following the conference call.

About Momentus

Momentus is a U.S. commercial space company that offers in-space infrastructure services, including in-space transportation, hosted payloads and in-orbit services. Momentus believes it can make new ways of operating in space possible with its planned in-space transfer and service vehicles that will be powered by an innovative water plasma-based propulsion system.

Forward-Looking Statements

This press release contains certain statements which may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements regarding Momentus’ or its management team’s expectations, hopes, beliefs, intentions or strategies regarding future events or circumstances, and are not guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Momentus’ control. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to risks and uncertainties included under the heading “Risk Factors” in the Annual Report on Form 10-K filed by the Company on March 8, 2023, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at investors.momentus.space. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230731866964/en/

Investors

[email protected]

Media

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KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Aerospace Technology Manufacturing Travel Other Transport Air Transport Satellite Other Defense Defense Engineering

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Kilroy Realty Corporation Reports Second Quarter Financial Results

LOS ANGELES–(BUSINESS WIRE)–
Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its second quarter ended June 30, 2023.

Second Quarter Highlights

Financial Results

• Revenues grew 4.8% to $284.3 million for the quarter ended June 30, 2023, as compared to $271.2 million for the quarter ended June 30, 2022

• Net income available to common stockholders of $0.47 per diluted share, an increase of 17.5% as compared to $0.40 per diluted share for the quarter ended June 30, 2022

• Funds from operations available to common stockholders and unitholders (“FFO”) of $141.9 million, or $1.19 per diluted share, an increase of 1.7% as compared to $139.4 million, or $1.17 per diluted share for the quarter ended June 30, 2022
  • Both net income available to common stockholders per diluted share and FFO per diluted share for the current quarter include $0.03 of non-recurring items

Leasing and Occupancy

• Stabilized portfolio was 86.6% occupied and 88.6% leased at June 30, 2023

• Signed approximately 285,000 square feet of new and renewing leases
  • GAAP and cash rents increased 15.3% and 2.5%, respectively, from prior levels in the stabilized portfolio

Balance Sheet / Liquidity

• As of the date of this release, the company had approximately $1.9 billion of total liquidity comprised of approximately $660.0 million of cash and short term investments, including the proceeds from the mortgage note referenced below, $170.0 million available under the unsecured term loan facility and approximately $1.1 billion available under the unsecured revolving credit facility

Dividend

• The company’s Board of Directors declared and paid a regular quarterly cash dividend on its common stock of $0.54 per share, equivalent to an annual rate of $2.16

Recent Developments

Development and Redevelopment

• In July, commenced GAAP revenue recognition at 9514 Towne Centre Drive, an approximately 71,000 square foot office building in the University Towne Center submarket of San Diego, and added the building to the stabilized portfolio. The building was moved to the tenant improvement phase upon completion of the core and shell in April and is 100% leased to a global technology company

Secured Debt

• In July, entered into an eleven-year, non-recourse mortgage note for $375.0 million. The mortgage note bears interest at a fixed rate of 5.90% and matures on August 10, 2034

Net Income Available to Common Stockholders / FFO Guidance and Outlook

The company is providing an updated guidance range of Nareit-defined FFO per diluted share for the full year 2023 of $4.43 to $4.53 per share, with a midpoint of $4.48 per share.

	Full Year 2023 Range
	Low End				High End
Net income available to common stockholders per share – diluted	$	1.67			$	1.77
Weighted average common shares outstanding – diluted (1)		117,500				117,500
Net income available to common stockholders	$	196,000			$	208,000
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership		2,000				2,300
Net income attributable to noncontrolling interests in consolidated property partnerships		24,500				25,500
Depreciation and amortization of real estate assets		340,000				340,000
Gains on sales of depreciable real estate		—				—
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships		(34,500	)			(35,500	)
Funds From Operations (2)	$	528,000			$	540,300
Weighted average common shares/units outstanding – diluted (3)		119,200				119,200
Funds From Operations per common share/unit – diluted (3)	$	4.43			$	4.53

Key Assumptions		April 2023 Assumptions		Updated 2023 Assumptions
Same Store Cash NOI growth (4)		0.0% to 2.0%		1.5% to 2.5%
Average occupancy		86.50% to 88.00%		86.75% to 87.75%
Total development spending (5)		$400 million to $500 million		$425 million to $475 million
Dispositions		$0 to $200 million		$0 to $200 million

________________________

(1)		Calculated based on estimated weighted average shares outstanding including non-participating share-based awards.
(2)		See management statement for Funds From Operations at end of release.
(3)		Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.
(4)		See management statement for Same Store Cash Net Operating Income on page 32 of our Supplemental Financial Report furnished on Form 8-K with this press release.
(5)		Remaining 2023 development spending is $250 million to $300 million.

The company’s guidance estimates for the full year 2023, and the reconciliation of net income available to common stockholders per share – diluted and FFO per share and unit – diluted included within this press release, reflect management’s views on current and future market conditions, including assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this press release. Although these guidance estimates reflect the impact on the company’s operating results of an assumed range of future disposition activity, these guidance estimates do not include any estimates of possible future gains or losses from possible future dispositions because the magnitude of gains or losses on sales of depreciable operating properties, if any, will depend on the sales price and depreciated cost basis of the disposed assets at the time of disposition, information that is not known at the time the company provides guidance, and the timing of any gain recognition will depend on the closing of the dispositions, information that is also not known at the time the company provides guidance and may occur after the relevant guidance period. We caution you not to place undue reliance on our assumed range of future disposition activity because any potential future disposition transactions will ultimately depend on the market conditions and other factors, including but not limited to the company’s capital needs, the particular assets being sold and the company’s ability to defer some or all of the taxable gain on the sales. These guidance estimates also do not include the impact on operating results from potential future acquisitions, possible capital markets activity, possible future impairment charges or any events outside of the company’s control. There can be no assurance that the company’s actual results will not differ materially from these estimates.

Conference Call and Audio Webcast

The company’s management will discuss second quarter results and the current business environment during the company’s August 1, 2023 earnings conference call. The call will begin at 10:00 a.m. Pacific Time and last approximately one hour. Those interested in listening via the Internet can access the conference call at https://events.q4inc.com/attendee/353799978. It may be necessary to download audio software to hear the conference call. Those interested in listening via telephone can access the conference call at (844) 200-6205 and enter access code 797620 five to 10 minutes prior to the start time to allow time for registration. International callers should dial (929) 526-1599 and enter the same passcode. In order to bypass speaking to the operator on the day of the call, please pre-register anytime at https://www.netroadshow.com/events/login?show=cc0cf787&confId=44981. A replay of the conference call will be available via telephone on August 1, 2023 through August 8, 2023 by dialing (866) 813-9403 and entering passcode 365683. International callers should dial (929) 458-6194 and enter the same passcode. The replay will also be available on our website at https://investors.kilroyrealty.com/shareholders/investor-events/default.aspx.

About Kilroy Realty Corporation

Kilroy Realty Corporation (NYSE: KRC, the “company”, “Kilroy”) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, the Pacific Northwest and Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, entertainment, life science and business services companies.

The company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects.

As of June 30, 2023, Kilroy’s stabilized portfolio totaled approximately 16.2 million square feet of primarily office and life science space that was 86.6% occupied and 88.6% leased. The company also had more than 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.7%. In addition, the company had two in-process life science redevelopment projects with total estimated redevelopment costs of $80.0 million, totaling approximately 100,000 square feet, and three in-process development projects with an estimated total investment of $1.7 billion, totaling approximately 1.7 million square feet of office and life science space. The in-process development and redevelopment office and life science space is 35% leased.

A Leader in Sustainability and Commitment to Corporate Social Responsibility

Kilroy has a longstanding commitment to sustainability and continues to be a recognized leader in our sector. For over a decade, the company and its sustainability initiatives have been recognized with numerous honors, including being listed on the Dow Jones Sustainability World Index, earning the GRESB five star rating and being named a sector and regional leader in the Americas. Other honors have included the Nareit Leader in the Light Award, being named ENERGY STAR Partner of the Year and receiving the ENERGY STAR highest honor of Sustained Excellence.

Kilroy is proud to have achieved carbon neutral operations across our portfolio since 2020. The company’s portfolio was 64% LEED certified and 44% Fitwel certified, and 67% of eligible properties were ENERGY STAR certified as of June 30, 2023.

A significant part of the company’s foundation is its commitment to enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. For the fourth year in a row, the company has been named to Bloomberg’s Gender Equality Index, which recognizes companies committed to supporting gender equality through policy development, representation, and transparency.

More information is available at http://www.kilroyrealty.com.

Forward-Looking Statements

This press release 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, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California, Texas and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding and the impact labor disruptions or strikes, such as episodic strikes in the entertainment industry, may have on our tenants’ businesses; our ability to re-lease property at or above current market rates; reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than the employer’s office premises; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; and our ability to maintain our status as a REIT. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2022 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

KILROY REALTY CORPORATION SUMMARY OF QUARTERLY RESULTS (unaudited; in thousands, except per share data)
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023				2022
Revenues	$	284,282		$	271,184		$	577,084			$	536,685
Net income available to common stockholders	$	55,587		$	47,105		$	112,195			$	100,233
Weighted average common shares outstanding – basic		117,155			116,822			117,107				116,737
Weighted average common shares outstanding – diluted		117,360			117,185			117,383				117,123
Net income available to common stockholders per share – basic	$	0.47		$	0.40		$	0.95			$	0.85
Net income available to common stockholders per share – diluted	$	0.47		$	0.40		$	0.95			$	0.85
Funds From Operations (1)(2)	$	141,853		$	139,353		$	287,812			$	277,119
Weighted average common shares/units outstanding – basic (3)		118,930			118,584			118,874				118,606
Weighted average common shares/units outstanding – diluted (4)		119,134			118,946			119,149				118,992
Funds From Operations per common share/unit – basic (2)	$	1.19		$	1.18		$	2.42			$	2.34
Funds From Operations per common share/unit – diluted (2)	$	1.19		$	1.17		$	2.42			$	2.33
Common shares outstanding at end of period								117,178				116,871
Common partnership units outstanding at end of period								1,151				1,151
Total common shares and units outstanding at end of period								118,329				118,022
							June 30, 2023				June 30, 2022
Stabilized office portfolio occupancy rates: (5)
Greater Los Angeles								81.5	%			84.9	%
San Diego County								85.4	%			90.9	%
San Francisco Bay Area								92.3	%			93.1	%
Greater Seattle								83.4	%			97.8	%
Weighted average total								86.6	%			91.4	%
Total square feet of stabilized office properties owned at end of period: (5)
Greater Los Angeles								4,344				4,422
San Diego County								2,700				2,174
San Francisco Bay Area								6,170				6,212
Greater Seattle								3,000				3,000
Total								16,214				15,808

________________________

(1)		Reconciliation of Net income available to common stockholders to Funds From Operations available to common stockholders and unitholders and management statement on Funds From Operations are included after the Consolidated Statements of Operations.
(2)		Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.
(3)		Calculated based on weighted average shares outstanding including participating share-based awards (i.e. nonvested stock and certain time based restricted stock units) and assuming the exchange of all common limited partnership units outstanding.
(4)		Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.
(5)		Occupancy percentages and total square feet reported are based on the company’s stabilized office portfolio for the periods presented.  Occupancy percentages and total square feet shown for June 30, 2022 include the office properties that were sold subsequent to June 30, 2022.

KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS (unaudited; in thousands)
	June 30, 2023				December 31, 2022
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	1,738,242			$	1,738,242
Buildings and improvements		8,353,596				8,302,081
Undeveloped land and construction in progress		1,894,545				1,691,860
Total real estate assets held for investment		11,986,383				11,732,183
Accumulated depreciation and amortization		(2,369,515	)			(2,218,710	)
Total real estate assets held for investment, net		9,616,868				9,513,473
Cash and cash equivalents		361,885				347,379
Marketable securities		25,786				23,547
Current receivables, net		10,686				20,583
Deferred rent receivables, net		463,640				452,200
Deferred leasing costs and acquisition-related intangible assets, net		230,559				250,846
Right of use ground lease assets		126,022				126,530
Prepaid expenses and other assets, net		75,588				62,429
TOTAL ASSETS	$	10,911,034			$	10,796,987
LIABILITIES AND EQUITY
LIABILITIES:
Secured debt, net	$	240,142			$	242,938
Unsecured debt, net		4,172,833				4,020,058
Accounts payable, accrued expenses and other liabilities		377,733				392,360
Ground lease liabilities		124,678				124,994
Accrued dividends and distributions		64,438				64,285
Deferred revenue and acquisition-related intangible liabilities, net		185,429				195,959
Rents received in advance and tenant security deposits		78,187				81,432
Total liabilities		5,243,440				5,122,026
EQUITY:
Stockholders’ Equity
Common stock		1,172				1,169
Additional paid-in capital		5,184,227				5,170,760
Retained earnings		248,695				265,118
Total stockholders’ equity		5,434,094				5,437,047
Noncontrolling Interests
Common units of the Operating Partnership		53,358				53,524
Noncontrolling interests in consolidated property partnerships		180,142				184,390
Total noncontrolling interests		233,500				237,914
Total equity		5,667,594				5,674,961
TOTAL LIABILITIES AND EQUITY	$	10,911,034			$	10,796,987

KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited; in thousands, except per share data)
	Three Months Ended June 30,								Six Months Ended June 30,
	2023				2022				2023				2022
REVENUES
Rental income	$	281,309			$	268,576			$	571,413			$	531,784
Other property income		2,973				2,608				5,671				4,901
Total revenues		284,282				271,184				577,084				536,685
EXPENSES
Property expenses		55,008				49,922				108,788				95,346
Real estate taxes		28,277				25,433				56,505				51,303
Ground leases		2,413				1,876				4,782				3,702
General and administrative expenses		22,659				22,120				46,595				44,901
Leasing costs		1,326				1,447				2,698				2,460
Depreciation and amortization		90,362				96,415				184,038				185,075
Total expenses		200,045				197,213				403,406				382,787
OTHER INCOME (EXPENSES)
Interest and other income, net		3,421				125				4,881				206
Interest expense		(26,383	)			(20,121	)			(52,054	)			(40,746	)
Total other expenses		(22,962	)			(19,996	)			(47,173	)			(40,540	)
NET INCOME		61,275				53,975				126,505				113,358
Net income attributable to noncontrolling common units of the Operating Partnership		(537	)			(515	)			(1,097	)			(1,031	)
Net income attributable to noncontrolling interests in consolidated property partnerships		(5,151	)			(6,355	)			(13,213	)			(12,094	)
Total income attributable to noncontrolling interests		(5,688	)			(6,870	)			(14,310	)			(13,125	)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	55,587			$	47,105			$	112,195			$	100,233
Weighted average common shares outstanding – basic		117,155				116,822				117,107				116,737
Weighted average common shares outstanding – diluted		117,360				117,185				117,383				117,123
Net income available to common stockholders per share – basic	$	0.47			$	0.40			$	0.95			$	0.85
Net income available to common stockholders per share – diluted	$	0.47			$	0.40			$	0.95			$	0.85

KILROY REALTY CORPORATION FUNDS FROM OPERATIONS (unaudited; in thousands, except per share data)
	Three Months Ended June 30,								Six Months Ended June 30,
	2023				2022				2023				2022
Net income available to common stockholders	$	55,587			$	47,105			$	112,195			$	100,233
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership		537				515				1,097				1,031
Net income attributable to noncontrolling interests in consolidated property partnerships		5,151				6,355				13,213				12,094
Depreciation and amortization of real estate assets		88,473				94,718				180,144				181,719
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships		(7,895	)			(9,340	)			(18,837	)			(17,958	)
Funds From Operations(1)(2)(3)	$	141,853			$	139,353			$	287,812			$	277,119
Weighted average common shares/units outstanding – basic (4)		118,930				118,584				118,874				118,606
Weighted average common shares/units outstanding – diluted (5)		119,134				118,946				119,149				118,992
Funds From Operations per common share/unit – basic (2)	$	1.19			$	1.18			$	2.42			$	2.34
Funds From Operations per common share/unit – diluted (2)	$	1.19			$	1.17			$	2.42			$	2.33

________________________

(1)		We calculate Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of Nareit.  The White Paper defines FFO as net income or loss calculated in accordance with GAAP, excluding extraordinary items, as defined by GAAP, gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets) and after adjustment for unconsolidated partnerships and joint ventures. Our calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets.  We also add back net income attributable to noncontrolling common units of the Operating Partnership because we report FFO attributable to common stockholders and common unitholders.
		We believe that FFO is a useful supplemental measure of our operating performance.  The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods.  Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs.  However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs.
		Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time.  Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient.  Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide.
		However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations.
(2)		Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.
(3)		FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of $4.9 million for the three months ended June 30, 2023 and 2022, and $10.1 million and $9.2 million for the six months ended June 30, 2023 and 2022, respectively.
(4)		Calculated based on weighted average shares outstanding including participating share-based awards (i.e. certain time based restricted stock units) and assuming the exchange of all common limited partnership units outstanding.
(5)		Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230731667493/en/

Eliott Trencher

Executive Vice President,

Chief Financial Officer

and Chief Investment Officer

(310) 481-8587

or

Bill Hutcheson

Senior Vice President,

Investor Relations & Capital Markets

(415) 778-5678

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Environment Residential Building & Real Estate Sustainability Commercial Building & Real Estate Construction & Property REIT

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Kilroy Realty Obtains $375 Million Secured Loan

LOS ANGELES–(BUSINESS WIRE)–
Kilroy Realty Corporation (NYSE: KRC, “Kilroy” or the “Company”) announced today that it has obtained an eleven-year, non-recourse secured loan for $375 million provided by New York Life Insurance Company. The loan bears interest at a fixed rate of 5.90% on an interest-only basis and matures on August 10^th, 2034.

One Paseo is a world-class, mixed-use campus that spans across 36 acres located in San Diego’s vibrant submarket of Del Mar. The loan is secured by the portion of the Company’s One Paseo campus that is on 23 acres, was developed in phases from 2019-2021, and is comprised of two office buildings, 608 apartment units and over 95,000 square feet of retail.

The Company intends to use proceeds from the loan for general corporate purposes, including funding development and reserving funds to address its December 2024 unsecured bond maturity. Kilroy’s debt capitalization has an average duration of approximately six years and a well staggered maturity with an average of approximately 6% coming due each year for the next three years.

“Against a challenging capital market backdrop, we are very pleased with this loan execution, which further fortifies our already strong balance sheet and liquidity position, while establishing a new partnership with a world class life insurance company,” said John Kilroy, the Company’s CEO. “Kilroy has an unrivaled portfolio of young, high quality assets across multiple property types which uniquely positions us to efficiently access the capital markets to bolster KRC’s platform optionality.”

JLL and Allen Matkins advised the Company on the transaction.

About Kilroy Realty Corporation

Kilroy Realty Corporation (NYSE: KRC, the “company”, “Kilroy”) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, the Pacific Northwest and Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, entertainment, life science and business services companies.

The company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects.

As of June 30, 2023, Kilroy’s stabilized portfolio totaled approximately 16.2 million square feet of primarily office and life science space that was 86.6% occupied and 88.6% leased. The company also had more than 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.7%. In addition, the company had two in-process life science redevelopment projects with total estimated redevelopment costs of $80.0 million, totaling approximately 100,000 square feet, and three in-process development projects with an estimated total investment of $1.7 billion, totaling approximately 1.7 million square feet of office and life science space. The in-process development and redevelopment office and life science space is 35% leased.

A Leader in Sustainability and Commitment to Corporate Social Responsibility

Kilroy has a longstanding commitment to sustainability and continues to be a recognized leader in our sector. For over a decade, the company and its sustainability initiatives have been recognized with numerous honors, including being listed on the Dow Jones Sustainability World Index, earning the GRESB five star rating and being named a sector and regional leader in the Americas. Other honors have included the Nareit Leader in the Light Award, being named ENERGY STAR Partner of the Year and receiving the ENERGY STAR highest honor of Sustained Excellence.

Kilroy is proud to have achieved carbon neutral operations across our portfolio since 2020. The company’s portfolio was 64% LEED certified and 44% Fitwel certified, and 67% of eligible properties were ENERGY STAR certified as of June 30, 2023.

A significant part of the company’s foundation is its commitment to enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. For the fourth year in a row, the company has been named to Bloomberg’s Gender Equality Index, which recognizes companies committed to supporting gender equality through policy development, representation, and transparency.

More information is available at http://www.kilroyrealty.com.

About New York Life

New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest¹ mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments, and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies.²

1 Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/05/2023. For methodology, please see http://fortune.com/fortune500/.

2 Individual independent rating agency commentary as of 10/18/2022: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).

Forward-Looking Statements

This press release 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, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California, Texas and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding and the impact labor disruptions or strikes, such as episodic strikes in the entertainment industry, may have on our tenants’ businesses; our ability to re-lease property at or above current market rates; reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than the employer’s office premises; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; and our ability to maintain our status as a REIT. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2022 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230731893809/en/

Eliott Trencher

EVP, Chief Financial Officer

and Chief Investment Officer

(310) 481-8587

Taylor Friend

Senior Vice President and Treasurer

(310) 481-8574

KEYWORDS: United States North America California New York

INDUSTRY KEYWORDS: Environment Commercial Building & Real Estate Construction & Property Insurance Finance REIT Professional Services Environmental, Social and Governance (ESG) Other Construction & Property Residential Building & Real Estate

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