KRC owns high-quality properties in the San Francisco Bay Area, Los Angeles, San Diego, and other key submarkets. KRC's competitive position, along with strong market fundamentals on the West Coast, allow the company to maintain a highly leased portfolio and command high rental rates. As of the first quarter of 2019, KRC had a $2.2 billion pipeline, one of the largest office REITs and the highest proportion relative its asset base. It began construction of two new speculative projects that heighten execution and leasing risks. EBITDA margins are consistently in the low- to mid-60% area, which compare favorably to the peer group. High margins stem from its historical low cost of land and low-rise development designs. The company closed on
