Kilroy Stock Offering to Fund Acquisitions

El Segundo-based Kilroy Realty Corp., which has filed with the Securities and Exchange Commission to sell 10 million common shares, expects to use a majority of the proceeds to finance new acquisitions. The company, which operates as a real estate investment trust, hopes to raise as much as $246.2 million from the offering if the shares sell for $26.06 each, the SEC filing said. “Usually, some eyebrows get raised when a company goes out for more equity” this soon after an initial stock offering, said Jon Fosheim, an analyst with Green Street Advisors Inc., an institutional real estate securities research firm based in Newport Beach. “That isn’t the case here. The Southern California office market still holds some good acquisition candidates.” Kilroy raised $287.5 million in an initial stock offering in January. The company’s shares rose 10% from an initial price of $23 in the first day of trading and reached a high of $28.13 in March. On Tuesday, Kilroy’s shares fell 50 cents to close at $24.81 on the NYSE. A spokesman for Kilroy declined to comment. Kilroy plans to use as much as $114.4 million from the offering for new acquisitions the company is negotiating, the filing said.