For the first nine months of 2013, KRC reported FFO of $160.1 million, or $1.99 per share, compared to $115.6 million, or $1.61 per share, in the first nine months of 2012. Net income available to common stockholders in the nine-month period was $11.3 million, or $0.13 per share, compared to $64.0 million, or $0.92 per share, in the same period of 2012. Results for the first nine months ended September 30, 2013 included the receipt of two cash payments totaling approximately $0.11 per share related to prior tenant matters and $0.02 per share of acquisition-related expenses. Results for the nine months ended September 30, 2012 included the receipt of a $0.01 per share cash payment related to a property damage settlement, $0.05 per share of acquisition-related expenses and a non-cash charge of $0.10 per share related to the redemption of all of the company’s Series E and Series F preferred stock and Series A preferred units. Net income for the nine months ended September 30, 2013 included an approximately $0.4 million net gain from a property disposition. Net income for the nine months ended September 30, 2012 included approximately $72.8 million of net gains from property dispositions. The company’s revenues, including discontinued operations, in the first nine months of 2013 totaled $369.8 million, up from $315.7 million in the same period of 2012.
All per share amounts in this report are presented on a diluted basis.
Operating and Leasing Activity
At September 30, 2013, KRC’s stabilized portfolio, which excludes properties held for sale, encompassing approximately 12.5 million square feet of office space located in Los Angeles, Orange County, San Diego, the San Francisco Bay Area and greater Seattle, was 92.2% occupied, up from 90.7% at the end of the second quarter. During the third quarter, the company signed new or renewing leases on approximately 510,000 square feet of space. At September 30, 2013, the stabilized portfolio was 93.7% leased.Real Estate Investment Activity In September, KRC completed the acquisition of a 13.8 acre Class A office campus in the coastal Del Mar sub-market of San Diego for approximately $126 million. The campus includes a three-story office building and a three-story life science building, which together total approximately 219,000 square feet, and a land site that is fully entitled for an additional 75,000 square-foot office building.
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