Kilroy Realty Announces Retirement of Board Director Scott Ingraham

Rhea-AI Summary

Kilroy Realty (NYSE: KRC) announced that independent director Scott Ingraham will retire from the Board of Directors at the Annual Meeting on May 20, 2025. Ingraham, who has served since 2007 and chaired the Audit Committee since 2008, will step down as the board reduces from eight to seven members.

The company's portfolio as of December 31, 2024, includes approximately 17.1 million square feet of primarily office and life science space with 82.8% occupancy and 84.9% lease rates. KRC also owns 1,000 residential units with 92.2% quarterly average occupancy. Current projects include two life science redevelopment initiatives totaling 100,000 square feet ($80.0 million estimated costs) and one 875,000-square-foot development project ($1.0 billion estimated investment).

Positive

• Strong residential portfolio performance with 92.2% occupancy rate
• Significant development pipeline with $1.08 billion in total investments
• Achieved carbon neutral operations across portfolio since 2020

Negative

• Office and life science portfolio showing relatively low occupancy at 82.8%
• Large $1.0 billion development project exposure amid market uncertainties

LOS ANGELES--(BUSINESS WIRE)-- Kilroy Realty Corporation (NYSE: KRC) (the “Company” or “Kilroy”) announced today that independent director, Scott Ingraham, will retire from the Board of Directors (“Board”) at its upcoming Annual Meeting to be held on May 20, 2025. Mr. Ingraham has served on the Board since 2007 and has chaired the Audit Committee of the Board since 2008.

“On behalf of the entire Board of Directors, our officers, and employees, I want to thank Scott for being an invaluable and long-serving member of the Board, and for his dedicated service as chair of the Company’s Audit Committee. I have personally enjoyed working closely with Scott over the past year and wish him all the best on his well-deserved retirement,” said Angela Aman, the Company’s Chief Executive Officer.

“I’ve been honored to serve on Kilroy’s Board for 18 years. I am grateful to have had the opportunity to work with such a talented group of individuals across the platform. Additionally, I am proud that during my time with the Company, we built a premier, high-quality real estate company, expanded the platform into multiple new markets, and most recently, effectuated a successful leadership transition as we welcomed Angela as our new CEO last year. I wish the Company and its employees every success in the future,” said Mr. Ingraham.

With this change, the Board approved a reduction in the number of Board members from eight to seven, effective at the Annual Meeting.

About Kilroy Realty Corporation

Kilroy is a leading U.S. landlord and developer, with operations in San Diego, Los Angeles, the San Francisco Bay Area, Seattle, and Austin. The Company has earned global recognition for sustainability, building operations, innovation, and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the Company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, entertainment, life science, and business services companies.

The Company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring, and managing office, life science, and mixed-use projects.

As of December 31, 2024, Kilroy’s stabilized portfolio totaled approximately 17.1 million square feet of primarily office and life science space that was 82.8% occupied and 84.9% leased. The Company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.2%. In addition, the Company had two life science redevelopment projects in the tenant improvement phase totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one development project under construction totaling approximately 875,000 square feet with a total estimated investment of $1.0 billion.

A Leader in Sustainability and Commitment to Corporate Social Responsibility

Kilroy has a longstanding commitment to sustainability and continues to be a recognized leader in our sector. For over a decade, the Company and its sustainability initiatives have been recognized with numerous honors, including earning the GRESB five star rating and being named a sector and regional leader in the Americas. Other honors have included the Nareit Leader in the Light Award, being listed on the Dow Jones Sustainability World Index, being named ENERGY STAR Partner of the Year, and receiving the ENERGY STAR highest honor of Sustained Excellence.

Kilroy is proud to have achieved carbon neutral operations across our portfolio since 2020. The Company also has a longstanding commitment to maintain high levels of LEED, Fitwel, and ENERGY STAR certifications across the portfolio.

Kilroy is committed to cultivating a company culture that makes a positive difference in our employees’ lives by focusing on development, celebrating our unique backgrounds, promoting employee health and wellness, and dedicating ourselves to being a responsible corporate citizen through our community service and philanthropic efforts.

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, including periods of heightened inflation, 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, Texas, 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, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the entertainment industry, may have on our tenants’ businesses; our ability to re-lease property at or above current market rates; reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer's office premises; 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; changes in interest rates and 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; risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; 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, 2024, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250410843348/en/

Doug Bettisworth

Vice President, Corporate Finance

(310) 481-8585

Source: Kilroy Realty Corporation

FAQ

When will Scott Ingraham retire from Kilroy Realty's (KRC) Board of Directors?

Scott Ingraham will retire at KRC's Annual Meeting on May 20, 2025, after serving 18 years on the board.

What is the current occupancy rate of Kilroy Realty's (KRC) office and life science portfolio?

As of December 31, 2024, KRC's 17.1 million square feet portfolio was 82.8% occupied and 84.9% leased.

How many development projects does Kilroy Realty (KRC) currently have under construction?

KRC has one development project under construction of approximately 875,000 square feet with a $1.0 billion estimated investment.

What is the occupancy rate of Kilroy Realty's (KRC) residential units?

KRC's 1,000 residential units in Hollywood and San Diego had a 92.2% quarterly average occupancy.