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Case-Shiller: San Francisco Home Prices Rose Again in March, Climbing 22 …

Sun, 16 Jun 2013 19:33:17 +0000

Home News Case-Shiller: San Francisco Home Prices Rose Again in March, Climbing 22% YOY

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By Brandon Cornett | Housing Market News
June 14, 2013 | © 2013, All rights reserved

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Mortgage shopping?

The housing market in San Francisco continues to be a standout, where prices are concerned. According to the latest release of the SP/Case-Shiller Home Price Index, house values in San Francisco rose 3.9% from February to March of this year. Prices have risen by a whopping 22% annually, when measured from March 2012 to March 2013. There is a two-month reporting lag with the Case-Shiller index, which is published on the last Tuesday of every month.

The chart below shows the 20 cities that make up the Case-Shiller 20-city composite. As you can see, the San Francisco real estate market experienced the second-largest annual gain in home prices, slightly behind Phoenix, Ariz.

San Francisco had the largest monthly gain of any metro in the 20-city index, and one of the largest monthly returns in the country. According to the Case-Shiller index, San Francisco property prices rose by 3.9% from February to March.

The Bay Area real estate market continues to rise a wave of recovery that has spread across the entire state. In the chart above, you’ll also notice strong annual returns for San Diego and Los Angeles. These returns are indicative of the positive housing trends throughout California.

In San Francisco’s real estate market, as in other metros across the Sunshine State, housing inventories have plummeted. According to Realtor.com’s monthly housing summary, the total number of homes listed for sale in San Francisco has dropped by 31.22% over the last year. This trend is being seen in other California cities as well, and often to a larger degree. Listing inventory is down 52% in Orange County, 46% in Oakland, and 45% in San Jose.

These are unprecedented statistics. Imagine half of a local real estate market disappearing in a single year. It’s no wonder home buyers are having trouble finding properties in these markets. The supply-and-demand picture has shifted considerably over the last couple of years, and it’s sending prices north. In short, more buyers are vying for fewer properties.

The median list price within the San Francisco housing market has climbed by more than 20% over the last year, according to Realtor.com.

According to DataQuick, a San Diego-based company that provides real estate market data, the median sale price in the nine-county Bay Area reached $519,000 in May. That was an increase of 1.8% from the previous month and 29.8% from the same time last year. The median for San Francisco County climbed to $870,000 last month — the highest of any county in the Bay Area.

Within the city proper, the median sale price is a cool million. According to the real estate firm Redfin, sellers within the city are getting 112% of their asking prices, on average. Clearly, it’s a good time to be selling a home within the San Francisco real estate market.

Home sales have slowed over the last year. In May 2012, a total of 8,899 sales were recorded across the Bay Area. Last month, 8,541 sales were recorded, 4% fewer than the same time last year. In San Francisco County, home sales have declined by 14% over the last year. But this is certainly not due to a lack of demand. It’s from a lack of inventory. If every buyer who wanted to buy a home in the Bay Area could actually find one, sales would probably be 20% to 30% higher this year.

Filed under Housing Market News

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Article source: http://www.homebuyinginstitute.com/news/case-shiller-san-francisco-409/

Many US Cities Becoming Sellers’

Fri, 15 Feb 2013 23:38:30 +0000

EMERYVILLE, CAZipRealty, Inc.(http://www.ziprealty.com),the leading online technology-enabled residential real estatebrokerage company, has released a list of the Top 10 Best Cities for Home Sellers as part of its List Price to Close Price Ratio Report, which is based on MLS data covering 32 U.S. markets. The exclusive study found that the gap between the listing price and closing price of an average home in the United States continues to narrow, with a growing number of sellers able to achieve more than 98% of their homes listing price. In addition, the median days a home spent on the market dropped to 44 nationwide in 2012, a 23% decline from 2011s 57 days.

A limited inventory of homes on the market, combined with the extremely low cost of mortgage financing, has resulted in homes selling above asking price in many western markets, boosting the average listing to closing price ratio, explains Lanny Baker, Chief Executive Officer and President of ZipRealty. The median amount of time that homes are listed on the market before they sell has shortened by more than two weeks since last year, and in some areas we are seeing one-in-five newly listed homes sell in less than seven days. Multiple-bid situations are also increasingly common in the markets we reviewed.

In January 2011, the list to close price ratio in the U.S. reached 97.1%, and increased 40 basis points to 97.5% in 2012. The ratio hit 98.3% nationwide as of December 2012, according to ZipRealty data.

TheTop 10 Best Cities for Home Sellersbased on ZipRealtys List Price to Close Price RatioReport are: San Francisco, San Diego, Sacramento, Las Vegas, Los Angeles, Orange County, Denver, Tucson, Portland and Seattle.

Article source: http://www.globest.com/news/12_540/sanfrancisco/other/Many-US-Cities-Becoming-Sellers-Real-Estate-Markets-According-to-ZipRealty-330074.html

Home Builders Turn to Rental Apartments

Fri, 25 Jan 2013 20:30:41 +0000

“This increase in new construction is congruous with the strength in market fundamentals – strong performance is serving as a catalyst for new development,” said Ryan Severino of Reis Inc. “If anything the amount of new completions that have been delivered up to this point is low relative to the strength of the apartment market. “

There were just over 200,000 multi-family housing starts in 2012, according to the U.S. Commerce Department, far lower than the annual average of 340,000 over the past decade.

“We are still woefully short of what’s going to be coming in terms of demand,” says Buck Horne, a housing analyst at Raymond James. “Lennar is going where the demand is going to be. They’re going where they know they can make money.”

Lennar has positioned itself with offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Miami, Orange County, San Francisco and Seattle, all markets where apartment demand is high, despite a recovery in the housing market.

“You’ve got to be very selective about your locations,” warns Miller. “We stay pretty thoughtful about where there are imbalances and too much building going on. This is not a market where you can start building any place.”

Miller is not concerned with competition from investors in the single family rental market, again focusing on location as his leg up. A lot of the foreclosed properties being absorbed by hedge funds and the like are not concentrated in the top markets targeted by Lennar. They are either inner city or third-level suburban, according to Miller.

Expanding household formations, coupled with credit and down payment-challenged new home buyers will benefit the rental sector for the foreseeable future. Many renters will eventually move to home buying, especially as their families expand. For Lennar, getting those potential buyers into a Lennar rental can only benefit the builder in the future.

“In many instances, the very first introduction to housing is through rentals and through branding and knowing consumers. Being there gives us a leg up and advantage in terms of new home sales later,” says Miller.

Article source: http://www.cnbc.com/id/100407898

Newport real estate is second highest in US

Fri, 30 Nov 2012 09:47:32 +0000

Forget the cliffside mansions of Carmel-by-the-Sea or San Francisco townhomes with Golden Gate views. If it’s pricey real estate you want, look no further than Newport Beach.

With an average home listing price of $1.658 million, Newport ranked second among the most expensive real estate markets in the country, according to Coldwell Banker’s annual Home Listing Report released this week.

That’s down a spot from last year, when Newport was at the top of the national list.

Topics

Real Estate

Fiscal Cliff

Bay Area suburb Los Altos ranked No. 1.

Of course, that Newport has ranked high in expensive housing is hardly a surprise, said Rick Jenkins, regional vice president of Coldwell for Orange County and desert regions.

“Newport is constantly well up there,” he said. “Certainly close to, if not at the top.”

And that’s a good thing, said Tricia Moore, executive vice president of the Newport Beach Assn. of Realtors.

“Overall I think it’s a positive for the city. It’s the same as a school getting a Blue Ribbon Award,” she said. “We’re a desirable community.”

Costa Mesa, at 19th most expensive in California, was the second highest ranked city in Orange County with an average asking price of $851,799. Irvine, with an average listing of $721,035, ranked 28th most expensive in the state.

Newport held down the sole Southern California spot in the list’s top six most expensive markets nationwide. The other five are Silicon Valley suburbs. The top average asking price? About $1.7 million.

According to the report, there’s about a $1.6-million drop down to the average price in the most affordable market surveyed: Redford, Mich. at $60,490.

Despite the fact that 12 of the list’s most expensive markets are in California, the state overall was less expensive on average than Hawaii and Massachusetts, which were most and second most expensive, respectively.

The report is based on the average listing prices of four-bedroom, two-bathroom homes in 2,500 U.S. markets from January to June.

Jenkins said the report is meant more as a “snapshot” of a particular type of home in certain areas than as a broad portrait of the housing market.

In general, he said, that picture is getting rosier.

“Broadly and generally, our Newport market is extremely good,” he said. Inventory counts have gone down throughout Orange County, which means demand is higher. And the percentage of sales categorized as distressed — as in the case of a foreclosure or short sale — is down from more than 50% in 2010 to about 13% now.

Those indicators, especially in combination, Jenkins said, point to a strong housing market.

“All in all we are just pleased with the real estate market as it’s going and we look forward to it continuing,” he said. “Frankly, it’s a good time to sell.”

Moore said she’s a little less optimistic, as the country hurtles toward that looming “fiscal cliff.”

“[In Newport] we saw the market starting to improve, I would say in July and August of this year.” Whether that continues, she said, “I guess it’ll depend on what transpires in the next 45 or 60 days.”

jill.cowan@latimes.com

Twitter: @jillcowan

Article source: http://www.dailypilot.com/news/tn-dpt-1130-newport-housing-prices-20121129,0,2509969.story

Kilroy Realty Corporation Reports Second Quarter Financial Results

Wed, 01 Aug 2012 23:40:16 +0000

LOS ANGELES, Aug 01, 2012 (BUSINESS WIRE) –
Kilroy Realty Corporation

/quotes/zigman/171049/quotes/nls/krc KRC
-0.27%

today reported
financial results for its second quarter ended June 30, 2012, with a net
loss available to common stockholders of $800,000, or $0.02 per share,
compared to a net loss available to common stockholders of $317,000, or
$0.01 per share, in the second quarter of 2011. Revenues from continuing
operations in the second quarter totaled $103.9 million, up from $88.4
million in the prior year’s second quarter. Funds from operations
(FFO) for the period totaled $39.5 million, or $0.55 per share, compared
to $31.6 million, or $0.52 per share, in the year-earlier period.

Results for the second quarter of 2012 include $0.03 per share of
acquisition-related expenses, and the issuance of 575,689 common shares
under the company’s at-the-market stock offering program at a weighted
average price of $46.05, net of selling commissions.

For the first six months of 2012, KRC reported net income available to
common stockholders of $66.7 million, or $1.00 per share, compared to
$717,000, or less than $0.01 per share, in the first half of 2011.
Revenues from continuing operations in the six-month period totaled
$203.3 million, up from $172.2 million in the same period of 2011. FFO
for the first half of 2012 totaled $72.5 million, or $1.04 per share,
compared to $61.8 million, or $1.06 per share, in the first half of
2011. Net income for first half of 2012 included approximately $72.8
million of net gains from property dispositions. All per share amounts
in this report are presented on a diluted basis.

At June 30, 2012, the company’s stabilized portfolio totaled
approximately 15.6 million square feet and was 90.0% occupied. Occupancy
declined from 91.6% in the prior quarter primarily due to the lease
expirations of two tenants in San Diego as well as an industrial tenant
move-out in Orange County.

Since the end of the first quarter, KRC has completed the purchase of
five office buildings in four transactions aggregating approximately 1.2
million square feet of space for an aggregate purchase price of
approximately $410 million. The company also expanded its development
platform into Northern California with the purchase of 690 E.
Middlefield Road in Mountain View, California and 329 Brannan Street in
the SOMA submarket of San Francisco that upon completion are estimated
to have a total investment of approximately $285 million. A summary of
these transactions is as follows:

–
In May, the company purchased 690 E. Middlefield Road in Mountain
View, California for a purchase price of $74.5 million, where it will
develop, own and manage a 341,000 square-foot office campus under a
15-year lease for Synopsys, Inc.

/quotes/zigman/78740/quotes/nls/snps SNPS
-0.63%

, the global leader in
electronic design automation. The Synopsys office campus represents
KRC’s first ground-up development project in the greater San Francisco
Bay Area and will have a projected total investment of approximately
$200 million. The fully entitled office project will include two
five-story Class A office buildings with state-of-the-art
infrastructure and amenities, designed and pre-registered to meet LEED
Gold certification requirements.

–
In June, the company acquired, in two separate transactions, a
three-building office campus located on the waterfront in the Lake
Union submarket of Seattle, Washington. The 420,000 square foot office
project was purchased for approximately $144.6 million and is
currently 99% leased. As part of the acquisition, the Company assumed
a mortgage loan of approximately $34.0 million that bears interest at
a rate of 5.09% and matures in August 2015.

–
In July, the company acquired Skyline Tower, a 417,000 square-foot,
24-story, Class A office building in Bellevue, Washington for
approximately $186 million. The LEED Silver certified property is
located two blocks from the company’s Key Center office building and
one block north of the Bellevue Transit Center. Skyline Tower is
currently 92% leased. As part of the acquisition, the company assumed
a mortgage loan of approximately $84 million that bears interest at a
rate of 6.37% and matures in April 2013.

–
In July, the company acquired 329 Brannan Street, an office
development opportunity in the heart of San Francisco’s SOMA district
for approximately $18.5 million. The site is zoned for approximately
5.0 FAR coverage and the company intends to build a six-level office
building designed to appeal to the area’s growing community of
technology and media companies.

–
In July, the company acquired Sunset Media Center, a 322,000 square
foot, 22-story, Class A office building located in the Hollywood
submarket of Los Angeles, California for a purchase price of
approximately $79 million. The building is currently 87% leased. As
part of the acquisition, the company issued approximately $5 million
in common limited partnership units of Kilroy Realty, L.P. and assumed
a mortgage loan of approximately $54 million that bears interest at a
rate of 5.23% and matures in January 2016.

In late June, KRC obtained a $97.0 million non-recourse mortgage secured
by two office projects. The mortgage has a term of 15 years, maturing on
July 1, 2027, and bears interest at a rate of 4.48%. The company used
the loan proceeds to pay down a portion of the outstanding balance on
its credit facility.

“KRC’s expanding operational footprint and management expertise in top
quality real estate markets up and down the West Coast continue to
generate significant opportunities for profitable growth and long-term
value creation,” said John Kilroy, Jr., the company’s president and
chief executive officer. “With the talent and market knowledge now
represented on our team, we’re well-positioned to compete for and
execute attractive acquisition and development projects from Seattle to
San Diego. Equally important, we will continue to pursue these
opportunities with financial discipline, recognizing that a strong
balance sheet is essential in what remains an uncertain economic
environment.”

KRC management will discuss updated earnings guidance for fiscal 2012
during the company’s August 2, 2012 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
http://www.kilroyrealty.com .
Please go to the website 15 minutes before the call and register. 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 (888) 679-8035 reservation #77332020. A replay of the conference
call will be available via phone through August 9, 2012 at (888)
286-8010, reservation #61086733, or via the Internet at the company’s
website.

About Kilroy Realty Corporation. Kilroy Realty Corporation, a
member of the SP Small Cap 600 Index, is a real estate investment trust
active in the office and industrial property sectors. For over 60 years,
the company has owned, developed, acquired and managed real estate
assets primarily in the coastal regions of Los Angeles, Orange County,
San Diego, greater Seattle and the San Francisco Bay Area. At June 30,
2012, the company owned 12.2 million rentable square feet of commercial
office space and 3.4 million rentable square feet of industrial space.
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, results or events. 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 in
forward-looking statements, and you should not rely on 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 forward-looking
statements, including, among others: risks associated with investment in
real estate assets, which are illiquid, and with trends in the real
estate industry; competitive market conditions; the ability to complete
potential acquisitions and dispositions on announced terms; the ability
to successfully operate acquired properties; the availability of cash
for debt service and exposure of risk of default under debt obligations;
government regulations that may affect development, redevelopment and
use of properties; and the ability to successfully complete development
and redevelopment projects on schedule and within budgeted amounts.
These factors are not exhaustive. 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, 2011,
quarterly report on Form 10-Q for the quarter ended March 31, 2012, 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 date 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 required in connection
with ongoing requirements under Federal securities laws.

KILROY REALTY CORPORATION SUMMARY QUARTERLY RESULTS (unaudited, in thousands, except per share data) ----------------------------------------------------------------------------------------------------------------------------------- Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 --------------- -------------- --------------- --------------- Revenues from continuing operations $ 103,922 $ 88,390 $ 203,332 $ 172,163 Revenues including discontinued operations $ 103,922 $ 92,064 $ 204,335 $ 180,189 Net (loss) income available to common stockholders(1) $ (800) $ (317) $ 66,740 $ 717 Weighted average common shares outstanding - basic 68,345 57,686 65,997 55,009 Weighted average common shares outstanding - diluted 68,345 57,686 65,997 55,009 Net (loss) income available to common stockholders per share - basic (1) $ (0.02) $ (0.01) $ 1.00 $ 0.00 Net (loss) income available to common stockholders per share - $ (0.02) $ (0.01) $ 1.00 $ 0.00 diluted (1) Funds From Operations (1), (2), (3) $ 39,508 $ 31,643 $ 72,498 $ 61,770 Weighted average common shares/units outstanding - basic (4) 71,226 60,337 68,799 57,634 Weighted average common shares/units outstanding - diluted (4) 72,473 60,817 69,815 58,010 Funds From Operations per common share/unit - basic (1), (4) $ 0.55 $ 0.52 $ 1.05 $ 1.07 Funds From Operations per common share/unit - diluted (1), (4) $ 0.55 $ 0.52 $ 1.04 $ 1.06 Common shares outstanding at end of period: 68,928 58,464 Common partnership units outstanding at end of period 1,718 1,718 ------------- ------------- Total common shares and units outstanding at end of period 70,646 60,182 June 30, 2012 June 30, 2011 ------------------ ------------------ Stabilized portfolio occupancy rates: Office 89.3 % 87.9 % Industrial 92.5 % 97.6 % ----------------- ----------------- Weighted average total 90.0 % 90.2 % Los Angeles and Ventura Counties 88.0 % 84.0 % San Diego County 87.5 % 88.4 % Orange County 92.7 % 96.7 % San Francisco Bay Area 91.4 % 93.1 % Greater Seattle 93.8 % 90.4 % ----------------- ----------------- Weighted average total 90.0 % 90.2 % Total square feet of stabilized properties owned at end of period: Office 12,227 11,466 Industrial 3,413 3,605 ------------- ------------- Total 15,640 15,071

(1) Net (Loss) Income Available to Common Stockholders includes a net gain on dispositions of discontinued operations of $72.8 million for the six months ended June 30, 2012. In addition, Net (Loss) Income Available to Common Stockholders and Funds from Operations for the six months ended June 30, 2012 include a non-cash charge of $4.9 million related to the original issuance cost of the Series E and F Preferred Stock that were redeemed on April 16, 2012. (2) Reconciliation of Net (Loss) Income Available to Common Stockholders to Funds From Operations and management statement on Funds From Operations are included after the Consolidated Statements of Operations. (3) Reported amounts are attributable to common stockholders and common unitholders. (4) Calculated based on weighted average shares outstanding including participating share-based awards and assuming the exchange of all common limited partnership units outstanding.

KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) ---------------------------------------------------------------------------------------------------------------- June 30, 2012 December 31, 2011 ----------------------- -------------------- ASSETS --------------------------------------------------------------------------- REAL ESTATE ASSETS: Land and improvements $ 576,433 $ 537,574 Buildings and improvements 3,137,665 2,830,310 Undeveloped land and construction in progress 557,657 430,806 ------------------ ------------------ 4,271,755 3,798,690 Total real estate held for investment Accumulated depreciation and amortization (801,083) (742,503) ---------------------- ------------------- Total real estate held for investment, net 3,470,672 3,056,187 Real estate assets and other assets held for sale, net -- 84,156 Cash and cash equivalents 18,111 4,777 Restricted cash 97 358 Marketable securities 6,546 5,691 Current receivables, net 7,643 8,395 Deferred rent receivables, net 110,689 101,142 Deferred leasing costs and acquisition-related intangible assets, net 168,488 155,522 Deferred financing costs, net 18,919 18,368 Prepaid expenses and other assets, net 46,357 12,199 ------------------ ------------------ TOTAL ASSETS $ 3,847,522 $ 3,446,795 ======= ========= ======= ========= LIABILITIES, NONCONTROLLING INTEREST AND EQUITY --------------------------------------------------------------------------- LIABILITIES: Secured debt $ 381,097 $ 351,825 Exchangeable senior notes, net 161,844 306,892 Unsecured debt, net 1,130,732 980,569 Unsecured line of credit 102,000 182,000 Accounts payable, accrued expenses and other liabilities 98,940 81,713 Accrued distributions 25,975 22,692 Deferred revenue and acquisition-related intangible liabilities, net 108,462 79,781 Rents received in advance and tenant security deposits 31,768 26,917 Liabilities and deferred revenue of real estate assets held for sale -- 13,286 ------------------ ------------------ Total liabilities 2,040,818 2,045,675 ------------------ ------------------ NONCONTROLLING INTEREST: 7.45% Series A Cumulative Redeemable Preferred units of the 73,638 73,638 Operating Partnership EQUITY: Stockholders' Equity 7.80% Series E Cumulative Redeemable Preferred stock -- 38,425 7.50% Series F Cumulative Redeemable Preferred stock -- 83,157 6.875% Series G Cumulative Redeemable Preferred stock 96,155 -- Common stock 689 588 Additional paid-in capital 1,856,431 1,448,997 Distributions in excess of earnings (259,495) (277,450) ---------------------- ------------------- Total stockholders' equity 1,693,780 1,293,717 ------------------ ------------------ Noncontrolling Interest Common units of the Operating Partnership 39,286 33,765 ------------------ ------------------ Total equity 1,733,066 1,327,482 ------------------ ------------------ TOTAL LIABILITIES, NONCONTROLLING INTEREST AND EQUITY $ 3,847,522 $ 3,446,795 ======= ========= ======= =========

KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data) ----------------------------------------------------------------------------------------------------------------------------------------------- Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 ------------------ ------------------ --------------- ------------------ REVENUES: Rental income $ 94,265 $ 80,158 $ 184,484 $ 157,155 Tenant reimbursements 9,065 7,130 17,369 13,152 Other property income 592 1,102 1,479 1,856 ---------------- ---------------- ------------- ---------------- Total revenues 103,922 88,390 203,332 172,163 ---------------- ---------------- ------------- ---------------- EXPENSES: Property expenses 21,196 17,356 38,731 34,865 Real estate taxes 8,881 8,127 17,270 16,017 Provision for bad debts -- 120 2 146 Ground leases 615 424 1,417 763 General and administrative expenses 9,251 7,440 18,018 14,000 Acquisition-related expenses 1,813 1,194 3,341 1,666 Depreciation and amortization 40,624 31,378 77,370 59,819 ---------------- ---------------- ------------- ---------------- Total expenses 82,380 66,039 156,149 127,276 ---------------- ---------------- ------------- ---------------- OTHER (EXPENSES) INCOME: Interest income and other net investment (losses) gains (110) 58 374 242 Interest expense (19,155) (21,228) (40,318) (42,104) -------------------- -------------------- ----------------- -------------------- Total other (expenses) income (19,265) (21,170) (39,944) (41,862) INCOME FROM CONTINUING OPERATIONS 2,277 1,181 7,239 3,025 DISCONTINUED OPERATIONS: Income from discontinued operations -- 2,291 900 5,314 Net gain on dispositions of discontinued operations -- -- 72,809 -- ---------------- ---------------- ------------- ---------------- Total income from discontinued operations -- 2,291 73,709 5,314 ---------------- ---------------- ------------- ---------------- NET INCOME 2,277 3,472 80,948 8,339 Net loss (income) attributable to noncontrolling common units of the 20 10 (1,775) (24) Operating Partnership -------------- -------------- ----------- ---- -------------- ---- NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION 2,297 3,482 79,173 8,315 PREFERRED DISTRIBUTIONS AND DIVIDENDS: Distributions on noncontrolling cumulative redeemable preferred (1,397) (1,397) (2,794) (2,794) units of the Operating Partnership Preferred dividends (1,700) (2,402) (4,721) (4,804) Original issuance costs of preferred stock called for redemption -- -- (4,918) -- ---------------- ---------------- ----------------- ---------------- Total preferred distributions and dividends (3,097) (3,799) (12,433) (7,598) NET (LOSS) INCOME AVAILABLE TO COMMON STOCKHOLDERS $ (800) $ (317) $ 66,740 $ 717 ======= ======= ==== ======= ======= ==== ==== ======= ======= ======= Weighted average common shares outstanding - basic 68,345 57,686 65,997 55,009 Weighted average common shares outstanding - diluted 68,345 57,686 65,997 55,009 Net (loss) income available to common stockholders per share - basic $ (0.02) $ (0.01) $ 1.00 $ 0.00 ======= ======= ==== ======= ======= ==== ==== ======= ======= ======= Net (loss) income available to common stockholders per share - $ (0.02) $ (0.01) $ 1.00 $ 0.00 diluted ======= ======= ==== ======= ======= ==== ==== ======= ==== ======= ======= ====

KILROY REALTY CORPORATION FUNDS FROM OPERATIONS (unaudited, in thousands, except per share data) ---------------------------------------------------------------------------------------------------------------------------------------------------- Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 ------------------ ------------------ -------------- -------------- Net (loss) income available to common stockholders $ (800) $ (317) $ 66,740 $ 717 Adjustments: Net (loss) income attributable to noncontrolling common units of the (20) (10) 1,775 24 Operating Partnership Depreciation and amortization of real estate assets 40,328 31,970 76,792 61,029 Net gain on dispositions of discontinued operations -- -- (72,809) -- ---------------- ---------------- ---------------- ---------------- Funds From Operations (1) $ 39,508 $ 31,643 $ 72,498 $ 61,770 ======= ======= ======= ======= ==== ====== ======= ======= Weighted average common shares/units outstanding - basic 71,226 60,337 68,799 57,634 Weighted average common shares/units outstanding - diluted 72,473 60,817 69,815 58,010 Funds From Operations per common share/unit - basic (2) $ 0.55 $ 0.52 $ 1.05 $ 1.07 ======= ======= ======= ======= ==== ====== ======= ======= Funds From Operations per common share/unit - diluted (2) $ 0.55 $ 0.52 $ 1.04 $ 1.06 ======= ======= ======= ======= ==== ====== ======= =======

(1) The company calculates FFO in accordance with the 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. Management believes that FFO is a useful supplemental measure of the company's 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 the company's 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 the company's operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, the company's 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, management believes that FFO along with the required GAAP presentations provides a more complete measurement of the company's performance relative to its 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 the company's operating performance since 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 the company's properties, which are significant economic costs and could materially impact the company's results from operations. (2) Reported amounts are attributable to common stockholders and common unitholders.

SOURCE: Kilroy Realty Corporation

Kilroy Realty Corporation Tyler H. Rose Executive Vice President and Chief Financial Officer (310) 481-8484 or Michelle Ngo Vice President and Treasurer (310) 481-8581

Copyright Business Wire 2012

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Article source: http://www.marketwatch.com/story/kilroy-realty-corporation-reports-second-quarter-financial-results-2012-08-01

142 big O.C. buildings are ‘distressed’

Mon, 13 Feb 2012 01:28:25 +0000

Paul Habibi is a lecturer at UCLA’s Ziman Center For Real Estate as well as principal and co-founder of Habibi Properties LLC, one of the largest private apartment owners in the Los Angeles area. We asked him to share his insights about what’s happening with the commercial real estate loan crisis …

Us: What’s the status of the commercial mortgage crisis? Are things getting better?

Paul: There are roughly $1.4 trillion of loans coming due by 2014, nearly half of which are currently under water. I’d estimate that when all the dust settles, $100-$150 billion will go back to lenders or get sold at a loss. I’m certainly on the bullish side, but the reality is that low interest rates and improving fundamentals have averted the commercial real estate crisis that many thought was imminent.

Us: Will lenders be nicer to commercial borrowers than to homeowners in working out loan modifications, extensions, etc?

Paul: Thus far, the success rate for workouts in the commercial sector far exceeds that of the residential sector. However, there isn’t nearly as much political pressure to help out commercial borrowers. As much as it is criticized as a non-strategy, extend and pretend worked. It bought borrowers time for the market to correct and for banks to avoid the costs and ripple effect of massive defaults.

Us: Are we past the peak? How much longer until the commercial real estate market is back on its feet?

Paul: With fundamentals on the upswing, we are well past the peak of distress. While the popular rhetoric will have you believe the recovery is sluggish, economic output today is ahead of pre-recession levels and corporate profits are very healthy. As it pertains to real estate, just the realm of real estate, concerns about the unemployment rate are overblown – it’s absolute job growth (size of the pie) that fills buildings and increases rents.

Us: How do commercial defaults in Orange County compare to the national market?

Paul: In Orange County, there is currently $2.3 billion of distressed across 142 properties, and nationally there is $170 billion across 12,243 properties.

While Orange Country commercial real estate experienced a tough time in the aftermath of the housing bubble, it is also healing fast. In the past year, looking at changes in commercial occupancy across the top 20 national markets, Orange County placed second only behind the San Francisco Bay Area.

Us: What’s the approximate value of commercial real estate defaults since the market crash in 2008?

Paul: Since 2008, we have seen over $340 billion worth of distress hit the market. Most of these loans are in various stages of default, but the resolution of each specific situation is what matters most.

To date over $40 billion has been taken back by lenders and classified as REO. Approximately $130 billion remains troubled and outstanding, and the balance of $170 billion has either been restructured or resolved.

Us: How much have lenders lost in the commercial real estate market collapse?

Paul: My estimates are somewhere between $70-80 billion. This number would be significantly higher in absence of the various cushions provided by quantitative easing, loan extensions and changes in mark-to-market accounting standards.

Article source: http://www.ocregister.com/articles/big-339920-ucla-buildings.html

Bay Area Based Mr. Pickle’s Inc. Catches a Wave Into Surf City USA

Mon, 14 Nov 2011 17:54:14 +0000

Huntington Beach, CA, November 14, 2011 –(PR.com)– Bay Area based Mr. Pickle’s Inc. announced today the grand opening of its third Mr. Pickle’s Sandwich Shop in Southern California. The newest San Franciscan Deli style inspired sandwich shop is located on the corner of Beach Boulevard and Warner Avenue, in the Plaza at Huntington Beach.
“We are excited to introduce Surf City USA to our quality sandwiches and we believe this location is going to be extremely popular,” says Mike Luzzi, franchise owner of the Huntington Beach and Lake Forest Mr. Pickle’s Sandwich Shops. “The intersection of Beach Boulevard and Warner Avenue is the second busiest intersection in Orange County. Over 107,000 cars pass through here daily!”

The opening of the Huntington Beach location marks the thirty-fifth sandwich shop for Mr. Pickle’s, which is preparing for rapid expansion in Southern California as well as neighboring states. Luzzi himself is planning to open at least three additional Mr. Pickle’s Sandwich Shops within the next nine to twelve months. The Mr. Pickle’s Sandwich Shop in Lake Forest opened in September 2010 and has outperformed revenue forecasts from day one.

The key will be finding the right locations in the right markets.

“This location is exactly what we look for – a second-generation, quick-serve space with significant business and residential density,” says Steve Williams, Director of Real Estate for Mr. Pickle’s Inc. “With a fifteen-story office building, a Bally’s Total Fitness and a Regency Theaters located on the property along with nearby schools and residences, the potential here is amazing! Until now, the property lacked a suitable fast-casual restaurant option. Once people enjoy one of our sandwiches, delivered with our uncompromising service in a comfortable atmosphere, they’ll be hooked!”

The new Huntington Beach Mr. Pickle’s Sandwich Shop is located at 7862 Warner Avenue. The two additional Southern California Mr. Pickle’s Sandwich Shops are located at 23591 Rockfield Boulevard in Lake Forest and 24427 Crenshaw Boulevard in Torrance, within the Torrance Crossroads Shopping Center.

For more information on Mr. Pickle’s, please visit www.mrpicklesinc.com.

About Mr. Pickle’s
With the first store opening in 1995 in San Mateo, California, Mr. Pickle’s Sandwich Shop serves the fast-casual restaurant market-segment where customers demand more than “fast food” but, without the price point of “casual dining.” The trademark of a Mr. Pickle’s Sandwich Shop is quality food, next-level service and a comfortable atmosphere with San Franciscan Deli style inspired sandwiches that are made to order with high-quality meats, served on delicious, freshly-baked artisan breads. Come experience what sets Mr. Pickle’s apart and keeps customers coming back for more.

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Article source: http://www.pr.com/press-release/368897

Bay Area could lead the way for jobs recovery — but it won’t happen right away

Wed, 15 Jun 2011 15:41:45 +0000

California won’t recover the jobs it lost during economic meltdown until at least 2014 — but the Bay Area could recapture its losses sooner than that, a report released Wednesday suggested.

Urban centers along the coast such as the Bay Area, Los Angeles, Orange County and San Diego are poised to rebound more rapidly than California overall. The most sluggish pace of recovery is expected for inland areas such as Sacramento, the Central Valley and the Riverside-San Bernardino-Ontario region.

“This is a bifurcated recovery,” said Jerry Nickelsburg, a senior economist with the UCLA Anderson Forecast, which released the report.

A jobs recovery will materialize in regions such as the Bay Area that are being bolstered by the tech rebound, along with exports and imports, the Anderson Forecast economists said.

“Coastal California, particularly the Bay Area with its technology and software industries, will lead in job growth,” according to the forecast.

Areas that depend more strongly on residential construction — such as inland regions of California — will struggle to produce an employment revival, Nickelsburg said.

A region such as the East Bay, however, could experience an uneven pace of recovery.

The East Bay has some high-tech in places such as Fremont, Pleasanton and Livermore. It also a considerable amount of cleantech operations sprinkled through the region. The East Bay also enjoys manufacturing and distribution

operations that are enhanced by the Port of Oakland’s import and export activity.
Housing and financial services, which melted down during the recession, also are a big part of the East Bay economy, however. Those anchors could drag down the pace of the employment rebound in the Alameda County-Contra Costa County region.

“The East Bay is pretty interesting,” Nickelsburg said. “It’s kind of a mix of industries.”

The biggest benefit for the East Bay could be its location near the primary recovery engines that are powered by the digital boom in Silicon Valley, San Francisco and San Mateo County.

“The spillover from high-tech in Silicon Valley will create employment opportunities in the East Bay,” said Jeffrey Michael, director of the Stockton-based Business Forecasting Center at University of the Pacific.

Real estate will remain a problem for job creation in the East Bay, however.

“High tech and exports and imports somewhat offset the housing hangover,” Michael said. “But the East Bay was hit as hard as anyplace else through the recession when it comes to jobs.”

In contrast, things appear more solid in Santa Clara County.

“Silicon Valley is already recovering,” Michael said.

The Anderson Forecast predicted that California will experience “slow growth” through the end of this year.

The forecasters also predicted:

Statewide unemployment, now at less than 12 percent, will continue to fall through the second half of 2011 and average 11.7 percent.

Job growth in 2012 will push the jobless rate down “marginally.”

The unemployment rate won’t reach 9.9 percent until the second quarter of 2013.

Growth in real personal income is forecast to be 1.7 percent in 2011 and 3.3 percent in 2012.
“The bifurcated recovery will be with us for some years to come,” the Anderson Forecast said.

Contact George Avalos at 925-977-8477. Follow him at Twitter.com/george_avalos.

Article source: http://www.mercurynews.com/crime-courts/ci_18272384

High-end Housing Market Sold More and More Luxury Homes

Tue, 22 Mar 2011 02:20:50 +0000

Luxury homes in the million-dollar housing market in the southern part of the San Francisco Bay Area in Northern California is gaining more strength in the month of February compared to January, and last year, according to a provider of real estate listings in San Diego, Los Angeles, San Francisco, Orange County, Ventura, and other California cities and counties — Coldwell Banker Residential Brokerage.

Inline with the increasing sales of luxury homes, residential real estate market in Maui, Hawaii is also shows new signs of development as demand for luxury homes and other high end properties are increasing. Real estate professionals in Maui are said to record soaring sales for luxury homes with serious offers and quick escrows.

In Santa Clara County in Silicon Valley, about 100-plus luxury homes are sold above $1 million for the month of February. There were only 98 luxury homes sold in January 2011.

Median price are also up by about 4.5 percent for the luxury homes to $1,356,000. Sales for $2 million residential homes were also up from 10 sales in January to about 18 selling transactions in February.

But, the prices and sales of luxury homes were slightly lower compared to the same period a year ago, while the median price for February this year is about 1.2 percent than February 2010.

Figures are from Multiple Listing Service in Santa Clara County last month.

According to the president of Coldwell Banker Residential Brokerage, Rick Turley, there are more luxury home buyer activity and interest since January this year in many housing markets, especially in Silicon Valley, but buyers of luxury homes are still cautious.

Article source: http://pptymag.com/high-end-housing-market-sold-more-and-more-luxury-homes/3794/