Peter Abramowicz

Peter Abramowicz inquired about the cumulative NOI impact of Kilroy's capital recycling activities, specifically the sales of Sabre Springs and Sunset Media Center, and the offset from the Nautilus acquisition, asking how this impact is factored into the 2026 guidance. He also questioned Kilroy's capital allocation strategy regarding life science investments, asking if they would invest in more Bay Area life science assets despite less favorable supply dynamics, or if their focus remains on unique opportunities like Torrey Pines.

Answer

CEO Angela Aman and EVP of CIO Eliott Trencher explained that the implied cap rate on the disposed pool (Sabre Springs, Sunset Media Center, and other 2025 sales) was around 8%, while acquisitions like Nautilus and Maple Plaza have mid-to-high single-digit going-in returns with a clear path to stabilized yields, making the portfolio net accretive post-stabilization. Ms. Aman clarified that while Torrey Pines was a unique opportunity, they would be hesitant to acquire additional vacancy in South San Francisco due to existing KOP vacancy, and future capital deployment will consider public market signals.