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Kilroy Realty Corporation Announces Fourth Quarter Dividend

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LOS ANGELES, Dec. 11, 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 January 17, 2001 to shareholders of record on December 29, 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 $525 million. At September 30, 2000, the company owned 6.3 million square feet of commercial office space and 5.8 million square feet of industrial space. More information on Kilroy Realty can be found at

Contact:  Kilroy Realty Corporation
          Tyler H. Rose
          Senior Vice President and Treasurer
          (310) 563-5531