KILROY REALTY CORPKRC

KILROY REALTY CORP Leases Disclosure

10-KFiled Feb 10, 20221 min read
for further information). The following table summarizes our properties that are held subject to long-term noncancellable ground lease obligations and the respective contractual expiration dates at December 31, 2021:
Property
Contractual Expiration Date (1)
701, 801 and 837 N. 34th Street, Seattle, WA (2)
December 2041
1701 Page Mill Road and 3150 Porter Drive, Palo Alto, CADecember 2067
Kilroy Airport Center Phases I, II, and III, Long Beach, CAJuly 2084
3243 S. La Cienega Boulevard, Los Angeles, CAOctober 2106
200 W. 6th Street, Austin, TX (3)
December 2112
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(1)    Reflects the contractual expiration date prior to the impact of any extension or purchase options held by the Company.
(2)    The Company has three 10-year and one 45-year extension options for this ground lease, which if exercised would extend the expiration date to December 2116. These extension options are not assumed to be exercised in our calculation of the present value of the future minimum lease payments for this lease.
(3)    We entered into this ground lease in connection with an operating property acquisition in 2021. Refer to Note 3 “Acquisitions” for additional information.

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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