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

Business Wire 9-Apr-2019 6:00 PM

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

The EPA's annual ENERGY STAR Awards honor organizations that have made outstanding contributions to protecting the environment through superior energy efficiency. Since 1992, ENERGY STAR and its partners have saved American families and businesses more than $430 billion in energy costs and over 3.5 trillion kWh of electricity, 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.

"We are very proud that ENERGY STAR has recognized our leadership in energy efficiency," said John Osmond, Senior Vice President, Asset Management. "Continuing to drive down energy consumption in our portfolio requires close collaboration among many internal teams, and we are proud to have a corporate culture focused on finding energy savings year after year."

KRC's key 2018 accomplishments related to award-winning energy management programs included:

• 50 properties (9.1 million square feet) earned the ENERGY STAR Label in 2018, representing 77% of the KRC eligible stabilized portfolio
• KRC recognized the work of its brokers to execute green leases through an innovative social media campaign
• KRC's office portfolio experienced a decrease in energy use of 2%, over 5,500 megawatt-hours, even though occupancy increased over the same timeframe
• The annual CO2 reduction was equivalent to taking 826 cars off the road for a year, providing a year of electricity to 466 homes, planting 64,311 trees and letting them grow for 10 years, and avoiding burning over 21.2 railcars' worth of coal. Since the 2010 launch of our energy efficiency programs, KRC has cumulatively reduced its energy consumption by approximately 40 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 11^th. The awards ceremony is particularly notable for KRC because KRC's Senior Vice President, Sustainability, Sara Neff will be providing the keynote speech. For a complete list of 2019 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 3.5 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, 2018, the company's stabilized portfolio totaled approximately 13.2 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. The stabilized portfolio was 94.4% occupied and 96.6% leased. In addition, KRC had three projects under construction totaling approximately 1.3 million square feet of office space that was 37% leased, 801 residential units and 96,000 square feet of retail space that was 91% leased, as well as two projects in the tenant improvement phase totaling approximately 1.2 million square feet of office and PDR space. The office components of the two projects are fully leased to Adobe and Dropbox.

The company's commitment and leadership position in sustainability has been recognized by various industry groups across the world. In September 2018, the company was recognized by GRESB both as North American leader across all asset classes and a global leader among all publicly traded real estate companies. Other sustainability accolades include NAREIT's Leader in the Light award for the past five years, the EPA's highest honor of Sustained Excellence and winner of ENERGY STAR Partner of the Year for the past five years. The company is listed in the Dow Jones Sustainability World Index. At the end of the fourth quarter, the company's stabilized portfolio was 63% LEED certified and 77% 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 or implied 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 enactment or implementations of, tax laws or other 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, 2018 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 dates 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.

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