Kilroy Realty Announces 2017 Tax Treatment of Its Dividend Distributions

LOS ANGELES--()--Kilroy Realty Corporation (NYSE: KRC) announced today the 2017 tax treatment of its dividend distributions. The company's total dividend distributions per share of common stock (CUSIP #49427F108) are to be classified for income tax purposes as follows:

 

Record

Date

 

Payable

Date

 

Total

Distribution

per Share

 

Total

Distribution

Attributable

to 2017

 

2017

Taxable

Ordinary

Dividend

 

2017

Total

Qualified

Dividend (1)

 

2017

Total Capital

Gain

Distribution

 

2017

Unrecaptured

Section 1250

Gain (2)

 

2017

Return of

Capital

12/30/2016   1/13/2017   $2.2750000(3)   $.6879937   $.4883784   $.0007854   $.0757891   $.0757891   $.1238262
3/31/2017   4/12/2017   .3750000   .3750000   .2661970   .0004281   .0413099   .0413099   .0674931
6/30/2017   7/12/2017   .4250000   .4250000   .3016900   .0004852   .0468178   .0468178   .0764922
9/29/2017   10/18/2017   .4250000   .4250000   .3016900   .0004852   .0468178   .0468178   .0764922

(1) Total Qualified Dividend is a subset of, and is included in, the Taxable Ordinary Dividend amount.

(2) Unrecaptured Section 1250 Gain is a subset of, and is included in, the Total Capital Gain Distribution amount.

(3) Amount consists of a $1.90 per share special distribution and a $0.375 per share regular quarterly distribution.

 

The $2.2750000 per share common stock distribution with a record date of December 30, 2016 consists of a $1.90 per share special distribution and a $0.375 per share regular quarterly distribution. The $1.90 per share special distribution is treated as paid in two tax years for income tax purposes: $1.5870063 is treated as paid on December 31, 2016 and $0.3129937 is treated as paid on January 13, 2017. The $0.375 per share regular quarterly distribution is considered a 2017 dividend distribution for income tax purposes.

The dividend distributions made to holders of record as of December 29, 2017 and paid on January 12, 2018 are considered 2018 dividend distributions for federal income tax purposes.

The company's total dividend distributions per share of Series G cumulative redeemable perpetual preferred stock (CUSIP #49427F702) are to be classified for income tax purposes as follows:

 

Record

Date (1)

 

Payable

Date

 

Total

Distribution

per Share

 

2017

Taxable

Ordinary

Dividend

 

2017

Total

Qualified

Dividend (2)

 

2017

Total Capital

Gain

Distribution

 

2017

Unrecaptured

Section 1250

Gain (3)

 

2017

Return of

Capital

1/31/2017   2/15/2017   $.4296875   $.3719642   $.0005982   $.0577233   $.0577233   -

(1) To the extent that the record date is on a Saturday, Sunday or New York Stock Exchange holiday, the effective record date shall be the immediately preceding business day.

(2) Total Qualified Dividend is a subset of, and is included in, the Taxable Ordinary Dividend amount.

(3) Unrecaptured Section 1250 Gain is a subset of, and is included in, the Total Capital Gain Distribution amount.

 

The company's total dividend distributions per share of Series H cumulative redeemable perpetual preferred stock (CUSIP #49427F801) are to be classified for income tax purposes as follows:

 

Record

Date (1)

 

Payable

Date

 

Total

Distribution

per Share

 

2017

Taxable

Ordinary

Dividend

 

2017

Total

Qualified

Dividend (2)

 

2017

Total Capital

Gain

Distribution

 

2017

Unrecaptured

Section 1250

Gain (3)

 

2017

Return of

Capital

1/31/2017   2/15/2017   $.3984375   $.3449122   $.0005547   $.0535253   $.0535253   -
4/30/2017   5/15/2017   .3984375   .3449122   .0005547   .0535253   .0535253   -
7/31/2017   8/15/2017   .3984375   .3449122   .0005547   .0535253   .0535253   -

(1) To the extent that the record date is on a Saturday, Sunday or New York Stock Exchange holiday, the effective record date shall be the immediately preceding business day.

(2) Total Qualified Dividend is a subset of, and is included in, the Taxable Ordinary Dividend amount.

(3) Unrecaptured Section 1250 Gain is a subset of, and is included in, the Total Capital Gain Distribution amount.

 

Stockholders are encouraged to consult with their tax advisors as to their specific tax treatment for Kilroy Realty Corporation common and preferred distributions.

About Kilroy Realty Corporation. Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the West Coast’s premier landlords. The company has over 70 years of experience developing, acquiring and managing office and mixed-use real estate assets. 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 September 30, 2017, the company’s stabilized portfolio totaled approximately 13.7 million square feet of office space located in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay Area and Greater Seattle and 200 residential units located in the Hollywood submarket of Los Angeles. In addition, KRC had four projects totaling approximately 1.8 million square feet of office space, 237 residential units and 96,000 square feet of retail space under construction.

The company has been recognized by GRESB as the North American leader in office sustainability for the last four years and is listed in the Dow Jones Sustainability World Index. At the end of the third quarter, the company’s stabilized portfolio was 55% LEED certified and 73% of eligible properties were ENERGY STAR certified. More information is available at http://www.kilroyrealty.com.

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 the forward-looking statements, and you should not rely on the 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 the forward-looking statements, including, among others: global market and general economic conditions and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses; our ability to re-lease property at or above current market rates; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing, and which may result in write offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or implementations of, applicable laws, regulations or legislation; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; and our ability to maintain our status as a REIT. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. 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, 2016 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information, 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 we are required to do so in connection with our ongoing requirements under federal securities laws.

Contacts

Kilroy Realty Corporation
Tyler H. Rose
Executive Vice President and Chief Financial Officer
(310) 481-8484
or
Michelle Ngo
Senior Vice President and Treasurer
(310) 481-8581

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