Kilroy Realty Corporation Wins 2018 ENERGY STAR Partner of the Year Sustained Excellence Award

April 3, 2018

LOS ANGELES–(BUSINESS WIRE)–Kilroy Realty Corporation (NYSE: KRC) announced today that the U.S.
Environmental Protection Agency (EPA) has for the fifth year in a row
recognized KRC as an ENERGY STAR Partner of the Year. In addition, the
EPA has also recognized KRC for the third time with its Sustained
Excellence designation, which is the Agency’s highest honor.

EPA’s annual ENERGY STAR Awards honor organizations that have made
outstanding contributions to protecting the environment through superior
energy efficiency. In its last reporting year, ENERGY STAR and its
partners saved American businesses and consumers 400 billion kilowatt
hours and $30 billion on their energy bills, while achieving broad
emission reductions.

The award winners are chosen from nearly 15,000 partners that
participate in the ENERGY STAR program, and the selection is extremely
competitive. Commercial landlords that win the prestigious award have
demonstrated an organization-wide commitment to reducing energy costs
for their tenants in partnership with ENERGY STAR. Only organizations
that have consistently earned Partner of the Year for several years are
eligible to earn Sustained Excellence, and their annual achievements
must continue to surpass those in previous years.

“Lowering operating expenses for our tenants via energy efficiency is a
key business strategy at KRC,” said Jeff Hawken, Chief Operating
Officer. “The ENERGY STAR program helps us find new opportunities to
reduce energy use and achieve recognition for doing so from our tenants,
investors and other stakeholders.”

KRC’s key 2017 accomplishments related to award-winning energy
management programs included:

55 properties (9.1 million square feet) earned the ENERGY STAR Label
in 2017, representing 73% of the KRC eligible stabilized portfolio
KRC recognized the work of its tenants through an innovative social
media campaign
KRC’s office portfolio experienced a drop in energy use of 3.9%, over
27,000 megawatt-hours, even though occupancy increased over the same
timeframe
The annual CO2 reduction was equivalent to taking 1,353 cars off the
road for a year, providing a year of electricity to 682 homes,
planting 163,700 trees and letting them grow for 10 years, and
avoiding burning over 34.5 railcars’ worth of coal. Since the 2010
launch of our energy efficiency programs, KRC has cumulatively reduced
its energy consumption by nearly 39.4 million megawatt-hours.
(http://www.epa.gov/cleanenergy/energy-resources/calculator.html#results)

The award winners, including KRC, will be recognized at an awards
ceremony in Washington, D.C. on April 20, 2018. For a complete list of
2018 winners and more information about ENERGY STAR’s awards program,
visit www.energystar.gov/awardwinners.

About ENERGY STAR. ENERGY STAR has 15,000 partners working
to protect the environment through greater energy efficiency, including
manufacturers, retailers, public schools, hospitals, real estate
companies, and home builders. Since 1992, ENERGY STAR and its partners
have saved American families and businesses $430 billion on their energy
bills and 4.6 trillion kilowatt-hours of energy, while achieving broad
emissions reductions—including 2.8 billion metric tons of greenhouse gas
emissions.

ENERGY STAR® is the simple choice for energy efficiency. For
25 years, EPA’s ENERGY STAR program has been America’s resource for
saving energy and protecting the environment. Join the millions already
making a difference at energystar.gov.

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 December 31, 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 fourth quarter, the
company’s stabilized portfolio was 58% 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, as well
as business and consumer reactions to such changes; 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, 2017 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.