Slide 1: Proxy Season Investor Presentation May 2014
KILROY REALTY CORPORATION Proxy Season Investor Presentation May 2014 fs amended. Tage snemans ce, anon ober Digs, iioraon conning Koy Realy Caparo he Canaan) oe and oaches fx hire apa pt ma imestmont, development and redevelopment achviy, nthe rdingly Tutu assets, which that ctr 10K t 2013
Slide 2: Leading West Coast Office REIT
conrORATON Leading West Coast Office REIT Greater Seattle Premier Franchise A premier provider and NYSE eee KRC IPO'd in January 1997 s72eN enterprise value’ Part of the S&P MidCap 400 Index Investment Grade Rated by S&P and Moody's 65+ years operating history through multiple cycles Own, operate, a
Slide 3: A Year of Achievements and Results
REA Reatty A Year of Achievements and Results CORPOR We achieved great success in executing our business strategy during 2013 Delivered strong operating and financial results year over year. Funds from operations (FFO') grew 32.1% Achieved record leasing results. 2.3 million square feet of office sp
Slide 4: Strong Operating Results in 2013
KILROY REALTY CORPORATION Strong Operating Results in 2013 Revenues from Continuing Operations ($m) Funds from Operations (FFO) / Share $207 2009 $233 2010 $465 $381 $310 2011 2012 2013 $2.60 $2.66 $2.29 $2.25 $2.05 2009 2010 2011 2012 2013 Revenues from continuing operations increased 22.1% over 20
Slide 5: Continued Strong Total Shareholder Return
Continued Strong REALTY corronatron TOtal Shareholder Return 3-Year TSR (Period Ended December 31, 2013)" 51.5% 31.2% 20.2% 21.0% Peer Group SNLUSREIT Office MSCIUS REIT KRC Companies Index In addition to outperforming the average TSR of our peers and relevant REIT indexes on a three year basis (not
Slide 6: Continued Strong Performance in Q1 2014
ReattyY Continued Strong Performance We continue to achieve our goal of creating shareholder value through leasing, acquisitions, development, and capital recycling in Q1 2014 Strong Financial Performance Operating Highlights (Q1 2014) 1Q 2013 1Q 2014 . liz ic ed at eo quarter-end FFO $0.62/share ("
Slide 7: Current Compensation Structure
REALTY ReattY Current Compensation Structure Our Executive Compensation Program is Designed to Strike a Balance Between Attracting and Retaining Talent, and Linking Executive and Shareholder Interests Majority of NEO’s total direct compensation is “at risk” incentive compensation’ 2013 Total Direct
Slide 8: Refined Pay Program for 2014
Reatty Refined Pay Program for 2014 We engaged wi 67% of our to seek feedback on our executive ‘compensation peaiam and in response, significantly reconstructed our program for 2014 Investor Feedback Action Taken by Company Place a greater emphasis on performance-based fous 2014, approximately 67% b
Slide 9: Sound Compensation Practices
REALTY ReattY Sound Compensation Practices a‘ Fee S&S & SS BK Dh HS BH Active with on ion practices Majority of NEO pay is “at risk” compensation Long-term incentives based on relative total shareholder return Anti-hedging and anti-pledging policies Executive stock ownership guidelines (3x — 6x base
Slide 10: Strong Board and Governance Practices Protect Rights and Promote Board Accountability
Strong Board and ReAttY Governance Leadership Practices Protect Rights and Promote Board Accountability Balanced Board with Institutional Knowledge ind Fresh Perspective of Two New Independent Directors? & Majority voting for director elections" * Robust lead independent director role < Board refres
Slide 11: Proxy Access is Not in Shareholders' Best Interests
Proxy Access is Not in REALTY CORPORATION Shareholders’ Best Interests | Our Base is Too C for a 3% Proxy Access Right misuse than at a Most proxy access proposals have been submitted to larger companies with more dispersed shareholder bases The Company's 25 largest shareholders own, in the aggregat
Slide 12: Kilroy Realty Corporation
KILROY REALTY CORPORATION