LOS ANGELES - Kilroy Realty Corporation (NYSE:KRC) announced that its operating partnership, Kilroy Realty, L.P., has closed on refinanced credit facilities totaling $1.5 billion, according to a press release statement.
The company secured a fifth amended and restated senior unsecured revolving credit facility permitting borrowings up to $1.25 billion, an increase from the previous $1.1 billion facility. The revolving credit facility matures July 31, 2030, extending the maturity by two years from the previous July 31, 2028 date, prior to the exercise of available extension options.
The SOFR borrowing spread was reduced to 100 basis points from 110 basis points, and the SOFR credit spread adjustment was eliminated from the previous 10 basis points. The annual facility fee remains at 25 basis points. The facility includes two six-month extension options.
Kilroy Realty also closed on an amended and restated senior unsecured term loan facility of $250 million, up from $200 million, maturing July 31, 2031. The previous term loan facility was set to mature October 3, 2026. Of the total amount, $200 million was previously outstanding and remains outstanding, while $50 million represents additional delayed draw term loan commitments available through June 11, 2027.
The SOFR borrowing spread on the term loan was reduced to 115 basis points from 120 basis points, and the SOFR credit spread adjustment was eliminated from 10 basis points.The refinancing comes as Kilroy carries total debt of approximately $4.7 billion with a debt-to-equity ratio of 0.9. The company maintains a market capitalization of $4.24 billion and an InvestingPro Financial Health score of "GOOD."
JPMorgan Chase Bank, N.A., BofA Securities, Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC, and U.S. Bank National Association acted as joint lead arrangers and joint bookrunners for both facilities.
As of March 31, 2026, Kilroy’s stabilized portfolio totaled approximately 17.1 million square feet of primarily office and life science space that was 77.6% occupied and 82.3% leased.The company offers investors a dividend yield of 5.67% and has maintained dividend payments for 30 consecutive years, according to InvestingPro analysis. The platform’s Fair Value analysis suggests the stock is currently undervalued, with shares trading at $36.15. For deeper insights into KRC’s valuation and access to exclusive ProTips, visit the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Kilroy Realty Corporation reported its Q1 2026 earnings, showing a mixed financial performance. The company experienced a notable revenue beat, with earnings reaching $270.05 million, surpassing the expected $263.12 million. However, Kilroy Realty’s earnings per share (EPS) fell short, reporting -$0.16 compared to the forecasted $0.13. In addition, Kilroy Realty’s shareholders approved an updated equity incentive plan at the annual meeting, increasing the total number of shares available under the plan by 1,700,000. The company also announced a quarterly dividend of $0.54 per share, payable in July 2026. Analyst firms have shown positive sentiment toward Kilroy Realty, with BofA Securities upgrading the stock rating to Buy and Evercore ISI raising it to Outperform. Both firms cited favorable valuation and improving demand as reasons for their upgrades. These developments reflect significant investor interest and strategic decisions by Kilroy Realty.
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