Kilroy Realty (KRC) Signs Lease Renewal With NBC Sports

Kilroy Realty Corporation (NYSE:KRC) has been experiencing solid demand for its properties from existing as well as new tenants. Most recently, the company struck a lease renewal with NBC Sports Bay Area for more than 44,000 square feet of space at 360 Third Street. The renewal has been signed for a period of five years.

Notably, this office property in the South of Market district of San Francisco has housed NBC Sports for nearly 10 years. Other reputed technology and media companies like Adobe Systems (NASDAQ:ADBE) , Pac-12 Network and AKQA are tenants in this property. This property was renovated substantially in 2013, features large floor plates, and has LEED Gold and Energy Star certifications.

As a matter of fact, demand for Kilroy Realty’s properties has been robust. The company has executed 1.3 million square feet of office leases in the San Francisco market over the past year. Three of those deals rank among the largest transactions in the region. These deals included Okta’s (NASDAQ:OKTA) 207,000 square foot lease at 100 First Street, Adobe’s 314,000 square foot lease at 100 Hooper and DropBox’s 736,000 square foot lease at The Exchange at 16th.

With more than 70 years of experience in developing, acquiring and managing office and mixed-use real estate assets, Kilroy Realty particularly focuses on offering physical work environments that suit the need of tenants from technology, entertainment, digital media and health care sectors.

Going forward, improvements in macroeconomic environment and the strengthening job market are likely to drive demand for office space. However, increasing supply of office space, prevalent space efficiency trends and rate hike issues remain concerns.

Shares of Kilroy Realty have outperformed the industry it belongs to, in the past three months. This Zacks Rank #3 (Hold) company’s shares have rallied 10.2%, while the industry recorded growth of just 0.4% during the same time period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



Better-ranked stocks in the REIT space include Franklin Street Properties (NYSE:FSP) and Columbia Property Trust (NYSE:CXP) . Both stocks carry a Zacks Rank of 2 (Buy).

Franklin Street Properties’ Zacks Consensus Estimates for 2017 FFO per share remained unchanged at $1.05 over the past month. Its share price has ascended 5.7% in three months’ time.

Columbia Property Trust’s FFO per share estimates for the current year have moved up 2.7% to $1.15 in a month’s time. Its shares have gained 4.7% over the past three months.

Note: All EPS numbers presented in this report represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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Adobe Systems Incorporated (ADBE): Free Stock Analysis Report

Kilroy Realty Corporation (KRC): Free Stock Analysis Report

Franklin Street Properties Corp. (FSP): Free Stock Analysis Report

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