LOS ANGELES--(BUSINESS WIRE)--Kilroy Realty Corporation (NYSE: KRC) announced at the Global Climate Action Summit (the “Summit”) that it commits to achieving carbon neutral operations by year end 2020, the only North American real estate company at the Summit to do so. This is the most meaningful climate commitment made at the Summit from the American real estate sector.
Achieving carbon neutral operations will involve three steps for KRC. First, KRC will continue to reduce the energy consumption of its properties through maximizing onsite energy reductions. Second, KRC will continue to take advantage of all onsite solar and battery installation opportunities. Finally, KRC will make the remainder of the energy consumption 100% renewably powered by adding capacity to the grid through an offsite energy power purchase agreement. Further, KRC is committed to achieving the same objective for its entire development pipeline.
Through these programs, KRC will reach Scope 1 and 2 carbon neutrality by the end of 2020, exceeding its carbon reduction goals previously validated by Science-Based Targets, a collaboration between the Carbon Disclosure Project, the United Nations Global Compact, the World Resources Institute, and the World Wide Fund for Nature, which independently assesses and approves the carbon reduction goals of companies.
KRC CEO John Kilroy made the announcement in the opening remarks of the Sustainable Communities track of the Summit, which featured government leaders and real estate developers from Europe, Africa, and Asia. KRC is participating in and sponsoring the Summit, which has brought together the world’s climate leaders to launch deep environmental commitments and accelerated action from cities, states, businesses, and investors. KRC is the sole American real estate company that was selected to participate in the Summit.
“KRC has a longstanding commitment to sustainability because it is the right thing to do. Our sustainability programs have been and will continue to be positive for our bottom line, promoting tenant and employee satisfaction, reducing operating costs, and making our buildings more resilient to whatever may lie ahead,” said Mr. Kilroy in his remarks.
KRC’s aggressive carbon objective builds on its foundation of industry-leading sustainability programs. KRC was recently named the North American leader in sustainability by GRESB across all asset classes, as well as the global world leader among all publicly traded real estate companies. It is a member of the Dow Jones Sustainability World Index. As a result of its longstanding commitment to sustainability, KRC has reduced energy consumption 15% and installed 5.2 MW of solar, among other accomplishments.
About Kilroy Realty Corporation. Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the West Coast’s premier landlords. The company has over 70 years of experience developing, acquiring, and managing office and mixed-use real estate assets. 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 June 30, 2018, the company’s stabilized portfolio totaled approximately 13.9 million square feet of office space located in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay Area and Greater Seattle and 200 residential units located in the Hollywood submarket of Los Angeles. In addition, KRC had three projects under construction totaling approximately 1.0 million square feet of office space, 608 residential units and 120,000 square feet of retail space as well as two projects in the tenant improvement phase totaling approximately 1.2 million square feet of office and PDR space. The office components of the two projects are fully leased to Adobe and Dropbox.
The company has been recognized by GRESB as the North American leader in office sustainability for the last five years and is listed in the Dow Jones Sustainability World Index. At the end of the second quarter, the company’s stabilized portfolio was 59% LEED certified and 76% of eligible properties were ENERGY STAR certified. More information is available at http://www.kilroyrealty.com.
Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses; our ability to re-lease property at or above current market rates; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing, and which may result in write offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or implementations of, applicable laws, regulations or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; and our ability to maintain our status as a REIT. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2017 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information, and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.