homesmillbrae.com » Six Months

To lock or not lock? That is the mortgage question

Fri, 20 Sep 2013 07:50:01 +0000

The rise in rates put the brakes on the housing recovery, sending both mortgage applications and home sales lower during the summer months. While home builders continued to tout demand and affordability, they could not help but notice fewer buyers in their showrooms.

“We are experiencing the same as others who have reported, decent spring followed by a poor summer,” said Stephen Paul of Mid-Atlantic Builders. “Through June, sales were up 16 percent then dropped off the table in July and August.”

Home builder confidence stalled nationally in September, after rising steadily, especially at the beginning of 2013.

“While builder confidence is holding at the highest level in nearly eight years, many are reporting some hesitancy on the part of buyers due to the sharp increase in interest rates,” said Rick Judson, the National Association of Home Builders’ chairman.

If interest rates retreat to where they were at the beginning of the year, mortgage refinances will likely rebound again, especially since they have dropped so dramatically in the past six months.

As for home sales, that is not an easy call. Sales have been hampered not just by rising mortgage rates, but by very low inventory, anemic construction, and still-pervasive negative equity among potential move-up buyers. Lackluster job and wage growth, especially among younger Americans, has not helped either.

(Read more: Tepper: Fed wants growth first, second, and third)

We also know that while the Federal Reserve may not be tapering now, it will have to eventually. Some say it should do so sooner rather than later.

“Rip this Band-Aid off already,” said Peter Boockvar of the Lindsey Group. “There will never be the right time to cut back, and today was the perfect opportunity to do so because the market was ready for it. Playing games now over this with the market will not smooth the eventual ease.”

Article source: http://www.cnbc.com/id/101043610

Home builder confidence soars despite rising rates

Wed, 17 Jul 2013 15:20:39 +0000

“Today’s report is particularly encouraging in that it shows improvement in builder confidence across every region as well as solid gains in current sales conditions, traffic of prospective buyers and sales expectations for the next six months,” noted NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “This positive momentum could be disrupted by threats on the policy side, particularly with regard to the mortgage interest deduction and federal support for the housing finance system.”

All three components of the index rose in July. Current sales conditions rose five points to 60—the highest level since early 2006. The component gauging sales expectations in the next six months gained seven points to 67, and the component gauging traffic of prospective buyers rose five points to 45—marking the strongest readings for each since late 2005.

“Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten,” noted NAHB Chief Economist David Crowe. “Meanwhile, as the infrastructure that supplies home building returns, some previously skyrocketing building material costs have begun to soften.”Sales of newly built homes rose just over 2 percent from May to June. Single family housing starts were flat. But permits, considered a more reliable indicator, gained 1.3 percent month-to-month.

Article source: http://www.cnbc.com/id/100889688

Home Builders Get Jitters for First Time in a Year

Sat, 23 Feb 2013 12:43:06 +0000

Of the three components making up the index, current sales conditions fell one point to 51, still the only component solidly in the positive. Sales expectations over the next six months rose one point to 50, but buyer traffic remained the weakest, falling four points to 32.

(Read More: Foreclosures Fall Due to New Laws)

Regionally the Northeast saw improvements in builder sentiment, as did the West, but the Midwest and South both slipped, down two points each. The Northeast is seeing gains in construction due to the rebuilding effort following Superstorm Sandy. That was apparent in another index released Monday gauging home remodeling. The Buildfax remodeling index showed seasonally adjusted annual rates of remodeling in the Northeast at 636,000 in December of 2012 — up 39 percent from November and up 37 percent from a year ago.

“The last time the Northeast broke 600,000 estimated residential remodels was five years ago,” wrote BuildFax’s Joe Emison in a release. “Unfortunately, the rest of the country saw both month-over-month and year-over-year declines in residential remodeling activity.”

Article source: http://www.cnbc.com/id/100469988

After Eight Months, Home Builder Confidence Stalls

Wed, 16 Jan 2013 19:52:46 +0000

Current sales conditions remained unchanged, sales expectations over the next six months fell one point, and buyer traffic gained one point. Regionally, home builders were less confident in the Northeast and Midwest, but gained confidence in the South and particularly in the West where the index jumped 14 points, well into the positive range.

(Read More: Homeowners With No Mortgage Offer Clues to Recovery)

“House price improvement has been the biggest reason we’ve seen more confidence improving in general, and prices are taking a stronger hold out West,” said David Crowe, NAHB’s chief economist, who notes that monthly regional moves can be more dramatic. A three-month running average, however, still puts the West ahead of the rest of the nation.

Builders out West have also been heartened by a huge drop in distressed properties, thanks to an influx of large-scale investors looking to reap the rewards of a growing single-family rental market. As supplies of homes for sale drop there precipitously, the builders are moving in again.

(Read More: Banks Pay Big for Robo-Signing…Again.)

Article source: http://www.cnbc.com/id/100384154

New Nightmare for Home Builders: Not Enough Skilled Workers

Fri, 07 Dec 2012 22:40:58 +0000

Housing starts are finally coming off their lows of barely a half a million in 2009, and are now surging quickly up in to a rate of around 800,000 annualized, according to the U.S. Department of Commerce. While this is still about half the pace of a normal housing market, it still means builders are looking for workers, especially skilled workers.

“About two weeks ago we started getting calls, like 7 or 8 a day, and we’ve been asked to bring students to work sites,” says Linda Thomas, an employment liaison for Job Corps. “They said look just bring them with their resumes, we’ve got work, we’re pushing more contracts now. Business is doing well, building is doing extremely well in the area.”

(Read More: Pending Home Sales Surge to Five Year Highh)

This is a drastic change from just six months ago, when Thomas was still finding herself the beggar, not the chooser with home builders. Her main concern is that all this new momentum will come to a grinding halt should the nation’s economy go over the so-called “fiscal cliff.”

“A contractor, once he sets up a job, then he has to get money for that job because he has to buy the materials and so forth, so if a bank is a little scary or his lender is a little scary, a private lender, he may not have the funds to start the project, therefore we won’t have the jobs.”

(Read More: Top Destination States for Jobs)

Article source: http://www.cnbc.com/id/100271485

Property Flippers Are Back as Housing’s New Middle Men

Tue, 16 Oct 2012 07:07:26 +0000

Who can forget the heady days of the housing boom when property flippers would follow condo developers around like hungry wolves, waiting to pounce on new projects before one grain of earth had moved?

Property auctions for single family homes weren’t any different, as novice buyers were scooping up multiple properties only to flip them for a profit in a matter of weeks.

Those days are gone; the price appreciation is gone, and the funding is gone…but apparently the flippers are back. Some of them never left. Close to 100,000 properties were flipped in the first six months of this year, according to RealtyTrac, which defines flipping as a home bought and sold within six months. That is a 25 percent jump from a year ago. But flipping is not what it used to be.

“There is this kind of middle man investor who is doing the flipping,” says RealtyTrac’s Daren Blomquist, who ran a webinar last month titled, “Why Property Flipping is Flying High in 2012.” Blomquist says the difference for today’s flippers is that they must add value to the home before selling, because price appreciation alone won’t net the profit they seek. That means rehabbing, which can be pricey, depending on the condition of the property. Many of the distressed homes now that flippers seek have been either ransacked by former owners or left vacant and untended for years.

(Read More: How to Play the Housing ‘Boom’)

“You don’t see any of that highly speculative flipping where it’s solely reliant on the home prices going up for the flip to work,” says Blomquist, which is why many flippers are middle men. They flip to other investors in order to get the profit they need. “It’s probably easier to flip to another investor because this person is an experienced buyer and should have their ducks in a row in terms of being able to finance the property, if not pay up front in cash.”

Large-scale, big money investors, like hedge funds, have flooded the single family real estate market, looking for rental properties that will produce good yield. While some have their own teams attending foreclosure auctions and doing the rehabilitation and remodeling, many would rather buy turn-key products, even if the price is slightly higher. The “pure” property flip appears to be less popular, although in some stronger markets it is certainly still happening.

(Read More: Cities With the Most Affordable Homes)

“I have seen a return of flipping, but only at the individual or small investor level. In some cases, these investors are targeting larger, institutional investors as potential buyers,” says Rick Sharga of Carrington Mortgage Holdings, a large fund investing in single family rentals. “I haven’t seen institutional investors doing much flipping (although they will occasionally sell off a few properties from a pool if the homes don’t fit their business model).”

Investors planning a REIT would not be flippers, Sharga notes, as what they need is a large pool of rental homes delivering the cash flow a REIT would require. Most of the larger investors are paying market price (sometimes a little less, sometimes more), which makes profitable flipping difficult.

(Read More: A Risky Lifeline for Seniors Is Costing Some Their Homes)

Until the rental market chills and the housing market shows strong price gains, pure property flipping will not be nearly as lucrative as it once was. On the positive side, continued strength in the single family rental market and the ensuing large investors interest offers smaller investors willing to do the dirty work a large pool of cash-heavy buyers.

Sector Watch: Construction General Building Materials

The Home Depot
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Lowe’s Companies
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The Sherwin-Williams Company
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E. I. du Pont de Nemours and Company
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Apogee Enterprises
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Questions? Comments? And follow me on Twitter @Diana_Olick

Article source: http://www.cnbc.com/id/49419503?__source=RSS*blog*&par=RSS

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

Supply of Tampa Bay area homes for sale shrinks to 5-year low

Wed, 26 Oct 2011 01:40:58 +0000

By Mark Puente, Times Staff Writer

In Print: Wednesday, October 26, 2011

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By the numbers

8,316 Homes and condos listed for sale in Pinellas County

9,981 Homes and condos listed in Hillsborough County

1,638 Listings for homes at $140,000 to $159,000 in Pinellas and Hillsborough counties

37% Decrease from a year ago in those moderately priced homes.

The amount of Tampa Bay area real estate for sale has fallen to levels not seen for almost six years.

“I think this one stat is a bright spot in an otherwise uncertain market,” said Tim Wilmath, director of valuation for the Hillsborough property appraiser.

Pinellas County listings for homes and condos fell last month to 8,316, a level last seen in December 2005. In Hillsborough County, the 9,981 listings were the lowest total seen since January 2006.

Real estate experts say a healthy inventory supply is six months, meaning it would take about six months to sell all the inventory that is currently on the market. The lower the supply, the stronger the market.

Hillsborough’s supply peaked at 25 months in January 2008; Pinellas at 18 months in March 2007. Today, Hillsborough’s supply is 5.8 months; Pinellas, 7.1 months.

In normal times, declining inventory would have homeowners rushing to drive “For Sale” signs in their lawns to snatch rising prices and multiple offers. But these days, even with mortgage rates at record lows, many homeowners have seen comparable properties in their neighborhoods go for a song and are hesitant to battle with the discounted prices of foreclosed and short-sale houses.

“I’m not replacing my listing inventory,” said Craig Beggins, owner of Century 21 Beggins Enterprises in Apollo Beach. “The only people selling right now are the ones who have to sell.”

The inventory decline is statewide.

Miami listings are down 49 percent from one year ago. Fort Myers, 42 percent; Orlando, 46 percent; Sarasota-Bradenton, 32 percent. That compares to the 33 percent drop in Tampa Bay.

But the good news may not last.

Some experts predict that lenders will start putting more homes on the market from the shadow inventory. These are homes that have already been seized by a lender but not listed for sale. The shadow inventory could further depress prices if banks put at lot of homes up for sale at once.

John Tucillo, chief economist at Florida Realtors, said the inventory of less expensive homes has shrunk, but the market is still saturated with higher-priced homes. “You’re almost getting a bifurcated market,” he said. “We’re seeing shortages in some price ranges.”

Moderately priced homes are disappearing from the market.

Listings decreased 37 percent in the $140,000 to $159,000 price range in Hillsborough and Pinellas ounties. The figure fell from 2,587 in September 2010 to 1,638 last month, according to data from the Greater Tampa Association of Realtors and Pinellas Realtor Organization.

Tony Delgado, an agent with Homeward Real Estate in South Tampa, said it’s becoming harder to find homes priced around $150,000. He said one of his clients took nine months to find a home on a deal closing this week.

“People are just giving up on selling their homes,” he said.

The dwindling supply in Tampa Bay area has not done much to raise sales or median prices of single-family homes. But the gaps are closing when compared year-over-year.

Sales were higher in six of nine months this year compared to the same months in 2010. A federal tax credit artificially inflated the figures in the three higher months in 2010.

In January, the median price was $110,000, 16 percent lower than the $130,500 media price in January 2010. In September, the gap closed by going from $130,100 in 2010 to $126,900 last month.

And a sliver of good news emerged last week about the Sunshine State’s housing market.

Florida, among the hardest-hit when the housing market imploded, appears to be stabilizing, according to a report from the real-estate website Realtor.com.

Across the country, the largest year-over-year increase in September’s median list prices occurred in five Florida markets: Fort Myers, Miami, Naples, Sarasota-Bradenton and Punta Gorda, the report said.

Still, Delgado, an agent for 22 years, fears the inventory will eventually rise again as banks put more distressed properties on the market, driving prices down again.

He added: “That’s going to have a negative impact and drive more people into foreclosure.”

Mark Puente can be reached at mpuente@sptimes.com or (727) 893-8459. Follow him at Twitter at twitter.com/markpuente.

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Article source: http://www.tampabay.com/news/business/realestate/supply-of-tampa-bay-area-homes-for-sale-shrinks-to-5-year-low/1198524

Fannie Mae Offers Investors New Financing Option

Fri, 08 Jul 2011 10:46:02 +0000

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Remember how we all blamed investor/flippers using faulty financing for the housing crash?

You know, these are all the bad guys who ran up home prices to their own profit, with no concern for the inevitable fallout; they colluded with overzealous, borderline blind, lenders who gave anybody and everybody a loan with no attention paid to their ability to repay said loan.

That’s all over now. You can’t get a loan without pledging your first born in collateral, and if you’re an investor, you rank somewhere just below Angelo Mozilo.

Or do you? Last month Fannie Mae made a little change in the rules for all-cash buyers to apply for mortgages. I don’t recall a press release, and I’m quite sure I’m on their mailing list. But there it is, “Announcement SEL-2011-5,” a “Selling Guide Update:”

Currently, Fannie Mae requires a minimum of six months to elapse between the time a borrower purchases a home and subsequently applies for a cash-out refinance.

The Selling Guide has been updated to allow a cash-out refinance within six months of a purchase transaction when no financing was obtained for the purchase transaction.

There are of course all kinds of parameters, including maximum LTV (loan-to-value ratio), documentation, arms-length transaction and “all other cash-out refinance eligibility requirements and cash out pricing applied.” The mortgage cannot be larger than the value of the home of course.

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No Housing Recovery Without Private Label Mortgage Investors

Wed, 18 May 2011 21:43:54 +0000

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Despite the lowest interest rate on the 30 year fixed in six months, mortgage applications to purchase a new home fell last week, over 3 percent. In fact, purchase application volume has been falling, on average, for the past four weeks, which is particularly troubling in this, the supposedly busiest season of the year for home buying.

So what’s going on?

I’m not going to boil it down to some generalization that there is no demand for housing out there, and everyone’s afraid of falling prices. There is demand. Homes are selling. But an historically high number of these purchases are to all-cash buyers, because the mortgage market is just so tight. Fannie, Freddie and FHA rule the roost, and their new rules and fees are pricing some buyers out while disqualifying many more.

Don’t get me wrong, I’m all for stricter underwriting, given the brutal effects of the opposite. I do, however, believe that as government tries to shut the door on Fannie and Freddie, it must open the door to private mortgage investors.

That’s why I was particularly interested to see the testimony today from the CEO of the only player in the private label game. Redwood Trust President and CEO Martin Hughes boiled the situation down pretty clearly.

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