$KRC CEO John Kilroy says he believes the stock is trading at a 1/3 discount to NAV on $C Citi Property CEO conference. Kilroy Oyster Point Ph 2 (Life sciences $ARE) to start this summer. Will also start development of new life sciences project in San Diego. KRC has plenty of $
for development. May also repurchase shares/pay special dividend. #reits #dividends #dividendstocks Great track record of value creation via development - should trade at a premium to NAV. I think this is worth $100-120 per share.
I estimate today's $1.1 bn sale of The Exchange was done at a ~4% cap rate. Tenant is $DBX who has leased space until 2023 but is looking to sublease.
Outlook for leasing has improved in SF Bay Area. Consistent with mgmt commentary on 4Q conf call. Tech tenants in B&C buildings are looking to upgrade into Cl A properties (vast majority of KRC is Cl A).
Plenty of Demand for Kilroy Oyster Point Phase 2. Sounds like a good chunk of this will be pre-leased before they break ground later this year. To be delivered 33 months from now.
Love the way these guys dynamically allocate capital - develop at yields in excess of 7% in great locations with marquee clients. After completing value add->as we saw today sell to lowest cost of capital (4%). $KRC is not just a cheap collection of assets. It is a #compounder
Leasing tour activity 'off the charts...More activity in Feb/March than all of March-Dec 2020.'
Here is my work on $KRC privateeyecapital.com/tag/krc/
I am LONG. THIS IS NOT INVESTMENT ADVICE. Do your own work.
Typo DBX lease is through 2033 so 12 more years

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More from @PrivateEyeCap

7 Mar
The RATE-ARDs at $MCO Moody's and S&P $SPGI have too much influence over companies - case in point is $INVH which owns 80k single family homes with a loan-to-value (LTV) of just 32%. Somehow this company is NOT 'investment grade' and they are de-levering...
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5 Mar
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$AVB $EQR $CPT $MAA $ESS $VNQ $AMH $XLRE #reits #dividends
SHOULD trade at premium to NAV->Platform value:
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9 Feb
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participants. Haha. Notes from call: There is a strong bid for Class B value add (apartment classes explained here) apartments in the private market. The cap rate spread between Class B 'value add' apartments and Class A apartments has narrowed considerably over the last couple
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5 Feb
$ESS Love the way they describe capital market activities on the call - I'm paraphrasing "Selling properties at pre COVID pricing and buying back stock at a significant discount to NAV". While volumes have declined in the private market mgmt believes suburban properties would
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