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Kilroy Realty Corporation Announces Second Quarter Dividend

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LOS ANGELES, May 22, 2001 -- Kilroy Realty Corporation (NYSE:KRC) announced today that its board of directors has declared a regular quarterly cash dividend of $0.48 per common share payable on July 18, 2001 to shareholders of record on June 29, 2001. The dividend is equivalent to an annual rate of $1.92 per share.

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 KRC's current development projects include Calabasas, West Los Angeles, and coastal San Diego, where the company's total development pipeline is approximately $500 million. At March 31, 2001, the company owned 7.1 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, Los Angeles 
          Tyler H. Rose, Senior Vice President and Treasurer
          (310) 563-5531