New York City-based D1 Capital Partners significantly increased its stake in Kilroy Realty Corporation by adding nearly 6.6 million shares in the third quarter, with the value of the fund’s Kilroy position rising by $293.7 million. As of quarter-end, D1 reported holding almost 8.5 million Kilroy shares valued at $358.4 million, accounting for 4.1% of assets.

In a Securities and Exchange Commission (SEC) filing, D1 Capital Partners L.P. disclosed acquiring nearly 6.6 million additional Kilroy Realty Corporation shares during the quarter. The fund’s position grew to almost 8.5 million shares valued at $358.4 million. Kilroy now represents 4.1% of D1 Capital Partners’ U.S. equity portfolio.

Kilroy Realty Corporation, a real estate investment trust (REIT) based in New York City, develops, acquires, and manages office and mixed-use properties, focusing on office and life science space as well as select residential units. The company generates revenue primarily from leasing commercial properties and development projects in major West Coast markets.

As of Friday, Kilroy shares were priced at $40.78, up 1% over the past year, underperforming the S&P 500’s 13% increase in the same period. The company’s market capitalization stands at $4.9 billion, with revenue of $1.1 billion and net income of $322.1 million over the trailing twelve months.

D1 Capital Partners’ increased stake in Kilroy Realty Corporation reflects ongoing institutional interest in high-quality coastal office REITs. Kilroy’s latest quarter showed positive signs, with strong leasing momentum and improved fundamentals, indicating potential for upside if operational execution continues to progress.

Read more at Yahoo Finance: Hedge Fund’s $358 Million Kilroy Realty Stake Reveals a Big Contrarian Bet on West Coast Real Estate