Kilroy 2Q16 Earnings Call Notes

Kilroy Realty’s (KRC) CEO John Kilroy on Q2 2016 Results

What’s good or bad for apartment isn’t necessarily good or bad for office

“Well, I again I don’t what we have statistics or Mike with regards to what the protection is for job growth for the market. I can you tell that don’t confuse office and apartments. We want everybody to do well, but a back off in rent increases in apartment is actually a very good thing for the office community because it makes it is more affordable for the people that they are unable. And again, what they’re talking about current rents that are more cautious about et cetera. We are talking about deals that we are working on for occupancy that are year and half are sold out”

Jeff Hawken

Fundamentals remain strong across our markets

“Thanks John, hello everyone. As John noted market fundamentals remain strong across all of our real estate markets. According to JOL, West Coast job growth outpaced the rest of the nation by almost 65% and our markets command a 17% premium in rents compared to the national average. In the San Francisco Bay Area, market fundamentals continue to trend higher. ”

Tech companies continue to spend a lot on space

“Definitely. Steven, Seattle and most of this is public, you look at whose looking in the market, now there is Apple, there is Amazon, there is Facebook, Uber, Google Sales Force, all of them are looking for space they have taken initial premises, they are looking for more and I mean I would say every two weeks there is a new name on the list. And I think another part of your question is what we are also seeing in terms of sentiment from the tenant side is they are making the capital commitment in their premises to deliver space that helps them retain, hire and keep the best and brightest employees. So there we see them spending money on tenant improvements and all sorts of employee benefits that hasn’t scaled back. In fact I would say it’s probably ramped up.”