Kilroy Continues to Outperform ESG Benchmarks and Advance Sustainability Leadership Position on a Global Level
Kilroy Earns Three Highest Rankings Among the GRESB 2021 Real Estate Assessment;
Recognized as Dow Jones Sustainability World Index Member for Five Consecutive Years;
Debuts on U.S. Environmental Protection Agency’s Top 100 List of Green Power Users
LOS ANGELES–(BUSINESS WIRE)–Kilroy Realty Corporation (NYSE: KRC, “Kilroy”) today announced that it has advanced its sustainability leadership position among the world’s most accredited organizations and ranking systems. Specifically, the GRESB 2021 Real Estate Assessment, the Dow Jones Sustainability World Index (DJSI), and the U.S. Environmental Protection Agency’s (EPA) National Top 100 List of the largest green power users. These honors and rankings underscore Kilroy’s extraordinary leadership in industry-pioneering sustainability initiatives, policies, and performance.
Kilroy’s recent 2021 rankings follow a monumental year for the company’s asset base, having successfully achieved carbon neutral operations after becoming the first North American REIT to commit to this ambitious goal. In championing sustainability initiatives that promote the health and well-being of its tenants and enhance local communities, Kilroy’s portfolio also earned the distinction of encompassing more designated Fitwel buildings than any other organization outside of the U.S. Government.
“Looking ahead, over the next five years, our focus will be on reducing our ‘Scope 3’ emissions through careful management of the embodied carbon of our construction projects and stabilized properties,” said John Kilroy, Chairman of the Board and CEO of Kilroy. “We’ll continue to advocate for a national policy that creates a more sustainable real estate industry, and based on our performance history, I’m confident we can achieve even greater sustainability goals, despite challenges we know the future will bring.”
Kilroy Earns Three Highest Rankings Among the GRESB 2021 Assessment:
GRESB is a leading ESG benchmark for real estate and infrastructure investments worldwide. The 2021 GRESB Assessment covers more than $5.3 trillion assets under management, giving clarity and direction to the real asset investment market as a means to address complex sustainability challenges.
This year, Kilroy earned noteworthy global rankings as the highest performing real estate company among the GRESB 2021 Assessment. Specifically, Kilroy was named the 1st Listed Leader in the Americas across all asset classes as well as 1st Listed Office Sector Leader in the U.S, earning a GRESB 5 star rating. The company also earned a global ranking in its diversified peer group as 2nd Listed U.S. Development Leader in the Office/Residential sector. Kilroy’s GRESB survey score rose to 95, a two-point increase from the year prior, and for the sixth consecutive year, Kilroy earned an “A” disclosure score for its transparency around ESG practices and reporting of the company’s progress.
Kilroy Recognized as Dow Jones Sustainability World Index Member for Five Consecutive Years:
Launched in 1999, the Dow Jones Sustainability World Index (DJSI) is widely regarded as one of the world’s foremost sustainability indices. The global index benchmarks the sustainability performance of leading (best 10%) companies worldwide based on environmental, social and economic performance, including forward-looking indicators.
Kilroy has been recognized as one of the industry leaders on this prestigious index since 2017—reflecting the company’s commitment to continually improving its sustainability performance. Only five North American real estate companies were named to the DJSI World Index this year.
Kilroy Makes Debut on U.S. Environmental Protection Agency’s Top 100 List of Green Power Users:
The U.S. Environmental Protection Agency’s (EPA’s) Green Power Partnership (GPP) is a voluntary program that helps increase green power use among U.S. organizations to advance the American market for green power and development of those sources as a way to reduce air pollution and other environmental impacts associated with electricity use.
For the first time, in 2021 Kilroy appeared on the EPA’s National Top 100 List of the largest green power users from the GPP (Kilroy ranks at No. 77). Kilroy is using nearly 177 million kilowatt-hours (kWh) of green power annually, which represents 69 percent of its operations’ total power needs. Kilroy’s choice to use green power helps advance the voluntary market for green power, as well as accelerating the development of renewable energy sources. By moving the needle in the voluntary green power market, Kilroy is helping to reduce carbon emissions and the negative health impacts of air emissions including those related to ozone, fine particles, acid rain, and regional haze.
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About Kilroy Realty Corporation
Kilroy Realty Corporation (NYSE: KRC, the “company”, “Kilroy”) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, the Pacific Northwest and Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators 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 September 30, 2021, Kilroy’s stabilized portfolio totaled approximately 15.2 million square feet of primarily office and life science space that was 91.5% occupied and 93.9% leased. The company also had more than 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 79.9%. In addition, the company had six in-process development projects with an estimated total investment of $2.6 billion, totaling approximately 3.0 million square feet of office and life science space. The office and life science space was 52% leased.
A Leader in Sustainability and Commitment to Corporate Social Responsibility
The company is listed on the Dow Jones Sustainability World Index and has been recognized by industry organizations around the world. The company’s stabilized portfolio was 78% LEED certified, 44% Fitwel certified, the highest of any non-government organization, and 72% of eligible properties were ENERGY STAR certified as of September 30, 2021.
The company has been recognized by GRESB as the listed sustainability leader in the Americas for eight of the last nine years. Other honors have included the National Association of Real Estate Investment Trust’s (NAREIT) Leader in the Light award for eight consecutive years and ENERGY STAR Partner of the Year for eight years as well as ENERGY STAR’s highest honor of Sustained Excellence, for the past six years.
A big part of the company’s foundation is its commitment to enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. For the second year in a row, the company has been named to Bloomberg’s Gender Equality Index—recognizing companies committed to supporting gender equality through policy development, representation, and transparency.
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, 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; 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; our ability to maintain our status as a REIT; and uncertainties regarding the impact of the COVID-19 pandemic, and restrictions intended to prevent its spread, on our business and the economy generally. 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, 2020 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.
Contacts
Sarah King
Senior Vice President, Sustainability
Kilroy Realty Corporation
(425) 990-7130
