Question · Q4 2025
John McCann asked if Kilroy anticipates acquiring more life science assets, or if the Nautilus acquisition was a unique opportunity specific to Torrey Pines, and requested the timing for the occupancy ramp at Nautilus to achieve its upper single-digit yield. He also sought Kilroy's latest views on Flower Mart, specifically if they would consider changing their strategy to standalone multifamily development given San Francisco's rent movements, or if joint ventures/land sales remain preferred.
Answer
CEO Angela Aman stated that Kilroy has no specific mandate to acquire more life science assets, viewing Nautilus as a unique, opportunistic acquisition in a tightly held market. EVP of CIO Eliott Trencher noted that leasing the remaining 50,000-55,000 sq ft at Nautilus, primarily through spec suites, is the main driver for achieving the upper single-digit yield. Ms. Aman reiterated that all options for Flower Mart are on the table, emphasizing optionality and flexibility in entitlements, but standalone multifamily development by Kilroy is unlikely due to cost of capital, favoring joint ventures, land contributions, or outright sales.
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