1025996--3/1/2006--KILROY_REALTY

related topics

{investment, property, distribution}

{loan, real, estate}

{provision, law, control}

{acquisition, growth, future}

{stock, price, share}

{operation, natural, condition}

{cost, contract, operation}

{debt, indebtedness, cash}

{condition, economic, financial}

{stock, price, operating}

{loss, insurance, financial}

{tax, income, asset}

{cost, regulation, environmental}

{capital, credit, financial}

General economic conditions may adversely affect our financial condition and results of operations. Our operations depend upon the Southern California economy. We depend on significant tenants. Downturn in tenants businesses may reduce our cash flow. We may be unable to renew leases or re-let available space. We are subject to governmental regulations that may affect the development, redevelopment and use of our Properties. Costs of compliance with governmental regulations Increasing utility costs and power outages in California may have an adverse effect on our operating results and occupancy levels Our debt level reduces cash available for distribution and may expose us to the risk of default under our debt obligations We face significant competition which may decrease the occupancy and rental rates of our Properties. Potential losses may not be covered by insurance. Earthquake damage to our Properties could have an adverse effect on our financial condition and operating results We may be unable to complete acquisitions and successfully operate acquired properties. We may be unable to successfully complete and operate developed and redeveloped properties. We could default on leases for land on which some of our Properties are located. Real estate assets are illiquid and we may not be able to sell our Properties when we desire to. Common limited partners of the Operating Partnership have limited approval rights, which may prevent us from completing a change of control transaction, that may be in the best interests of stockholders. Limited partners of the Operating Partnership must approve the dissolution of the Operating Partnership and the disposition of properties they contributed The Chairman of our Board of Directors and our President and Chief Executive Officer each have substantial influence over our affairs There are limits on the ownership of our capital stock, which limit the opportunities for a change of control at a premium to existing stockholders. Our charter contains provisions that may delay, defer, or prevent a change of control transaction. Our Board of Directors is divided into classes that serve staggered terms. We could issue preferred stock without stockholder approval. We have a stockholders rights plan. Loss of our REIT status would have significant adverse consequences to us and the value of our stock. To maintain our REIT status we may be forced to borrow funds on a short-term basis during unfavorable market conditions. Our growth depends on external sources of capital which are outside of our control. Our Board of Directors may change investment and financing policies without stockholder approval causing us to become more highly leveraged, which may increase our risk of default under our debt obligations. We are not limited in our ability to incur debt. We may issue additional shares of capital stock without stockholder approval, which may dilute stockholder investment. We may invest in securities related to real estate which could adversely affect our ability to make distributions to stockholders. Sales of a substantial number of shares of our securities, or the perception that this could occur, could result in decreasing the quoted market price per share for our securities. Future terrorist activity or engagement in war by the United States may have an adverse affect on our financial condition and operating results

Full 10-K form ▸

1025996--3/1/2006--KILROY_REALTY_CORP