Kilroy Realty Corporation (NYSE: KRC) announced today the tax treatment of its 2015 dividend distributions. The company's total dividend distributions per share of common stock (CUSIP #49427F108) are to be classified for income tax purposes as follows:

Record
Date 		  Payable
Date 		  Total Distribution per Share   2015 Taxable Ordinary Dividend   2015 Total Qualified Dividend (1)   2015

Total Capital Gain Distribution

  2015 Unrecaptured Section 1250 Gain (2)   2015
Return of Capital
12/31/2014   1/14/2015   $.3500000   $.2484628   $ .0004654   $.1015372   $.0887467   -
3/31/2015   4/15/2015   .3500000   .2484628   .0004654   .1015372   .0887467   -
6/30/2015   7/15/2015   .3500000   .2484628   .0004654   .1015372   .0887467   -
9/30/2015   10/14/2015   .3500000   .2484628   .0004654   .1015372   .0887467   -

(1) Total Qualified Dividend is a subset of, and is included in, the Taxable Ordinary Dividend amount.
(2) Unrecaptured Section 1250 Gain is a subset of, and is included in, the Total Capital Gain Distribution amount.

The dividend distributions made to holders of record as of December 31, 2015 and paid on January 13, 2016 are considered 2016 dividend distributions for federal income tax purposes.

The company's total dividend distributions per share of Series G cumulative redeemable perpetual preferred stock (CUSIP #49427F702) are to be classified for income tax purposes as follows:

Record
Date 		  Payable
Date 		  Total Distribution per Share   2015
Taxable Ordinary Dividend 		  2015
Total Qualified Dividend (1)		   2015

Total Capital Gain Distribution

  2015 Unrecaptured Section 1250 Gain (2)   2015
Return of Capital
1/31/2015   2/16/2015   $.4296875   $ .3050324   $.0005714   $.1246551   $.1089525   -
4/30/2015   5/15/2015   .4296875   .3050324   .0005714   .1246551   .1089525   -
7/31/2015   8/15/2015   .4296875   .3050324   .0005714   .1246551   .1089525   -
10/31/2015   11/15/2015   . 4296875   .3050324   .0005714   .1246551   .1089525   -

(1) Total Qualified Dividend is a subset of, and is included in, the Taxable Ordinary Dividend amount.
(2) Unrecaptured Section 1250 Gain is a subset of, and is included in, the Total Capital Gain Distribution amount.

The company's total dividend distributions per share of Series H cumulative redeemable perpetual preferred stock (CUSIP #49427F801) are to be classified for income tax purposes as follows:

Record
Date 		  Payable
Date 		  Total Distribution per Share   2015
Taxable Ordinary Dividend 		  2015
Total Qualified Dividend (1)		   2015

Total Capital Gain Distribution

  2015 Unrecaptured Section 1250 Gain (2)   2015
Return of Capital
1/31/2015   2/16/2015   $.3984375   $.2828482   $.0005298   $.1155893   $.1010287   -
4/30/2015   5/15/2015   .3984375   .2828482   .0005298   .1155893   .1010287   -
7/31/2015   8/15/2015   .3984375   .2828482   .0005298   .1155893   .1010287   -
10/31/2015   11/15/2015   .3984375   .2828482   .0005298   .1155893   .1010287   -

(1) Total Qualified Dividend is a subset of, and is included in, the Taxable Ordinary Dividend amount.
(2) Unrecaptured Section 1250 Gain is a subset of, and is included in, the Total Capital Gain Distribution amount.

Stockholders are encouraged to consult with their tax advisors as to their specific tax treatment for Kilroy Realty Corporation common and preferred distributions.

About Kilroy Realty Corporation. With more than 65 years’ experience owning, developing, acquiring and managing real estate assets in West Coast real estate markets, Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the region’s premier landlords. 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 September 30, 2015, the company’s stabilized portfolio totaled 13.1 million square feet of office properties, all located in the coastal regions of greater Seattle, the San Francisco Bay Area, Los Angeles, Orange County and San Diego. The company is recognized by the Global Real Estate Sustainability Benchmark (GRESB) as the North American leader in sustainability and was ranked first among 155 North American participants across all asset types. At the end of the third quarter, the company’s properties were 45% LEED certified and 64% of eligible properties were ENERGY STAR certified. In addition, KRC had approximately 2.3 million square feet of office and mixed-use development under construction with a total estimated investment of approximately $1.5 billion. More information is available at http://www.kilroyrealty.com.