Kilroy Realty Continues Its Development Progress

Kilroy Realty Corporation (NYSE: KRC) announced today the continued progress of its West Coast development program with the delivery and stabilization of one office project in the San Francisco Bay Area and the commencement of a new state-of-the-art office building in San Diego.

In the third quarter, the company delivered and stabilized a $300 million, 587,429 square foot, three building project located in Sunnyvale, CA. The campus is 100% leased to the professional network giant LinkedIn Corporation.

The LEED Silver certified campus is located along two major arteries, Maude and Mathilda Avenues, bisecting Sunnyvale and just one mile from Caltrain, providing both high visibility and convenient access to multiple forms of transportation, including the nearby Central Expressway.

In addition, KRC commenced construction in October on the third building at The Heights at Del Mar, a $45 million, best in class, 74,895 square foot, Class A office building located in the Del Mar submarket of San Diego. The building is being developed on the four acre land site that was part of the company’s 2013 acquisition of The Heights at Del Mar campus that also includes two fully leased, LEED Silver certified office buildings totaling 219,000 square feet.

The Heights at Del Mar is adjacent to and an integral complement of the company’s proposed One Paseo, a 23-acre property that will be transformed by KRC into a sustainable, walkable, bikeable, mixed-use environment. Additionally, the campus is directly across the street from 270,000 square feet of full-service retail and an expansive community park. The LEED Gold targeted three-story building is projected to be completed in the fourth quarter of 2015.

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, a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the region’s premier landlords. 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, 2014, the company’s stabilized portfolio totaled 13.5 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 third quarter, the company’s properties were 41% LEED certified and 59% of the eligible properties were ENERGY STAR certified. In addition, KRC has approximately 2.0 million square feet of new office development under construction with a total estimated investment of approximately $1.2 billion. 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 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/A for the year ended December 31, 2013 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.