<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 3, 2000
KILROY REALTY CORPORATION
(Exact name of registrant as specified in its charter)
Maryland Commission File Number: 95-4598246
(State or other jurisdiction 1-12675 (I.R.S. Employer
of incorporation or organization) Identification No.)
2250 East Imperial Highway, Suite 1200, El Segundo, California 90245
(Address of principal executive offices)
Registrant's telephone number, including area code: (310) 563-5500
================================================================================
<PAGE>
ITEM 5. OTHER EVENTS
On May 3, 2000, Kilroy Realty Corporation disseminated a press release, a copy
of which is filed herewith as Exhibit 99.1 and incorporated herein by this
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
<TABLE>
<CAPTION>
Exhibit
-------
Number Description
------ -----------
<S> <C>
*99.1 Press Release dated May 3, 2000.
</TABLE>
* Filed herewith.
2
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KILROY REALTY CORPORATION
Date: May 5, 2000
By: /s/ Ann Marie Whitney
-----------------------
Ann Marie Whitney
Senior Vice-President and Controller
3
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
-------
Number Description
------ -----------
<S> <C>
99.1 Press Release dated May 3, 2000.
</TABLE>
4
<PAGE>
EXHIBIT 99.1
NEWS RELEASE DATED MAY 3, 2000
Contact: FOR RELEASE
Richard E. Moran Jr. May 3, 2000
Executive Vice President
and Chief Financial Officer
(310) 563-5533
or
Tyler H. Rose
Senior Vice President
and Treasurer
(310) 563-5531
KILROY REALTY CORPORATION REPORTS 11.9%
INCREASE IN FIRST QUARTER FFO PER SHARE
LOS ANGELES, May 3, 2000 - Kilroy Realty Corporation (NYSE: KRC) today
reported financial results for its first quarter ended March 31, 2000, with
funds from operations (FFO) of $20.7 million, or $0.66 per share, up 11.9% on a
per-share basis from $18.8 million, or $0.59 per share, in the first quarter of
1999. Net income in the first quarter was $9.6 million, or $0.35 per share,
compared to $9.9 million, or $0.36 per share, in the year-earlier quarter.
Revenues totaled $43.8 million, up from $37.6 million a year ago. All per-share
amounts are presented on a diluted basis.
"Market conditions for commercial real estate in Southern California remain
strong and steady," said John B. Kilroy, Jr., KRC's president and chief
executive officer. "With this healthy backdrop, we continue to execute an
ambitious development program that includes a committed pipeline that will add
$284 million in new properties to our portfolio over the next three years."
During the first quarter, KRC completed 72,000 square feet of office space in
the Del Mar submarket of San Diego for a total investment of approximately $15.6
million. The property was
<PAGE>
100% leased on completion. Overall occupancy for the company's portfolio at
first quarter's end, including the newly stabilized property, was 97%.
KRC's committed development pipeline of nearly 1.4 million square feet of
office space in Southern California is already 88% pre-leased or otherwise
committed, with individual properties scheduled for completion at various dates
through 2002.
The company repurchased 1,999,300 shares during the first quarter at an
average price per share of $20.58. KRC has now completed the repurchase of
approximately 2.3 million shares of its announced three-million share repurchase
program.
KRC Acquires Note Securing Key El Segundo Office Project
Earlier this week, KRC initiated actions that has put it in a position to
potentially acquire the last remaining commercial property developed by Kilroy
Industries and still privately held by Kilroy Airport Imperial Co. ("KAICO")
which is owned and controlled by the Kilroy family. The project consists of two
office buildings, totaling 366,000 square feet, and a parking structure, which
are located at the corner of Imperial Highway and Sepulveda Boulevard in El
Segundo, a prime gateway location to Los Angeles International Airport. One of
the buildings is fully-leased to Hughes Aircraft Company ("Hughes") and the
other is vacant.
On May 1, 2000, KRC purchased an outstanding $71 million note on the property
held by an institutional lender for a discounted price of $45.3 million. The
loan has a principal balance of $61 million and accrued interest of $10 million.
In addition, the company has agreed to pay KAICO a total of $3.7 million: $2.3
million in reimbursement of expenditures incurred by KAICO since 1997, and $1.4
million to be paid at a later date for modification to an existing option that
Kilroy Realty, L.P. holds to purchase the property. The option to purchase the
property is subject to a Hughes right of first offer. In the event that KRC
were to acquire the property, the company estimates that it could invest an
additional $20 million to $30 million in the property.
Some of the information presented in this release is forward-looking in
nature. Although the information is based on the company's current best
judgment, actual results could vary from expectations stated here. Numerous
factors will affect KRC's actual results, some of which are beyond the company's
control. These include the timing and strength of regional economic growth, the
strength of commercial and industrial real estate markets, competitive market
<PAGE>
conditions, future interest rate levels and capital market conditions. For
further information, please see KRC's Annual Report on Form 10-K and its
Quarterly Reports on Form 10-Q.
Kilroy Realty Corporation is a Southern California-based real estate
investment trust active in the office and industrial property sectors. For more
than 50 years, the company has owned, developed, acquired and managed real
estate assets in the coastal regions of California and Washington. Principal
submarkets for the company's current development projects include Los Angeles,
San Diego and Long Beach where the company's total development program is over
$550 million. At March 31, 2000, the company owned 6.2 million square feet of
commercial office space and 6.4 million square feet of industrial space. More
information on Kilroy Realty can be found at www.kilroyrealty.com.
--------------------
#############
