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Kilroy Realty Corporation announces third Quarter Dividend

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LOS ANGELES, CA, September 12, 2000 – Kilroy Realty Corporation (NYSE: KRC) announced today that its board of directors has declared a regular quarterly cash dividend of $0.45 per common share payable on October 17, 2000 to shareholders of record on September 30, 2000. The dividend is equivalent to an annual rate of $1.80 per share.

Kilroy Realty Corporation is a Southern California-based real estate investment trust active in the commercial office and industrial property sectors. The company has a 50-year history of owning, developing, acquiring and managing real estate assets in the coastal regions of California and Washington. Principal submarkets for the company’s current development projects include Calabasas, West Los Angeles, and coastal San Diego, where the company’s total development program is over $545 million. At June 30, 2000, the company owned 6.3 million square feet of commercial office space and 6.2 million square feet of industrial space. More information on Kilroy Realty can be found at www.kilroyrealty.com.