Kilroy Realty Announces Commitment to Achieve Carbon Neutral Operations by Year End 2020 at the Global Climate Action Summit
September 14 2018 - 12:16PM
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.
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Kilroy Realty CorporationSara NeffSenior Vice President,
Sustainability310-481-8449sneff@kilroyrealty.com
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