Kilroy Realty Selling $309 Million of Office Properties

$146 Million Closed in April; $163 Million in Escrow

LOS ANGELES--()--Kilroy Realty Corporation (NYSE: KRC) announced today that it has sold or is in escrow to sell ten West Coast office buildings for gross proceeds of approximately $309.2 million. In aggregate, the properties total 1.0 million square feet and were approximately 84% occupied at March 31, 2015. As part of the company’s capital recycling strategy, the company will use the proceeds to fund its expanding West Coast office development program and potential acquisition opportunities, pay down its line of credit and for other general corporate purposes.

“The sales prices in these transactions reflect strong investor demand for well-located, high quality properties.”

Details of the transactions are as follows:

  • In the first quarter, the company entered into contract to sell nine office buildings in San Diego, California in two tranches:
    • The company completed the sale of three office buildings in mid-April, 10770 Wateridge Circle and 6200 and 6220 Greenwich Drive, for $95.0 million in gross proceeds.
    • The company expects to complete the sale of the second tranche for $163.0 million later in the second quarter. The six office buildings in this tranche include 6260, 6290, 6310, 6340, and 6350 Sequence Drive and 4921 Directors Place.
  • Separately, in late-April, the company completed the sale of 15050 NE 36th Street in Redmond, Washington for gross proceeds of $51.2 million.

“We continue to be pleased with our ability to successfully execute our strategic plan of recycling capital into our state-of-the-art, value-creating development program,” said John Kilroy, chairman, president and CEO of Kilroy Realty. "The sales prices in these transactions reflect strong investor demand for well-located, high quality properties.”

About Kilroy Realty Corporation. With more than 65 years’ experience owning, developing, acquiring and managing real estate assets in West Coast real estate markets, Kilroy Realty Corporation (KRC), is one of the region’s premier landlords. A publicly traded real estate investment trust and member of the S&P MidCap 400 Index, the company provides physical work environments that foster creativity and productivity and serves a broad roster of dynamic, innovation-driven tenants, including technology, entertainment, digital media and health care companies.

At December 31, 2014, the company’s stabilized portfolio totaled 14.1 million square feet of office properties, all located in the coastal regions of greater Seattle, the San Francisco Bay Area, Los Angeles, Orange County and San Diego. The company is recognized by the Global Real Estate Sustainability Benchmark (GRESB) as the North American leader in sustainability and was ranked first among 151 North American participants across all asset types. At the end of the fourth quarter, the company’s properties were 39% LEED certified and 56% of eligible properties were ENERGY STAR certified. In addition, KRC had approximately 1.7 million square feet of new office and mixed-use development under construction representing a total estimated investment of approximately $1.0 billion. More information is available at

Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated in forward-looking statements, and you should not rely on forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in forward-looking statements, including, among others, risks associated with: investment in real estate assets, which are illiquid; trends in the real estate industry; significant competition, which may decrease the occupancy and rental rates of properties; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired properties; the availability of cash for distribution and debt service and exposure of risk of default under debt obligations; adverse changes to, or implementations of, applicable laws, regulations or legislation; and the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts. These factors are not exhaustive. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2014 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on information that was available, and speak only, as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent required in connection with ongoing requirements under U.S. securities laws.


Kilroy Realty Corporation
Tyler H. Rose
Executive Vice President
and Chief Financial Officer
Michelle Ngo
Senior Vice President and Treasurer

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