Form 4: Kilroy Realty Corp Executive Smart Receives Dividend Equivalent Rights in Stock Units

Justin William Smart, President of Kilroy Realty Corp, reports acquisition of stock units representing dividend equivalent rights.

Summary

• On April 10, 2024, Justin William Smart, President of Kilroy Realty Corporation, acquired 2,447.4954 shares of common stock at $0 and 306.848 and 675.8699 restricted stock units at $0.
• These transactions represent dividend equivalent rights related to previously reported restricted stock unit awards under the Kilroy Realty 2006 Incentive Award Plan.
• The restricted stock units are contingent rights to receive one share of Issuer common stock.
• The reporting person was awarded performance units in 2022 and 2023 covering three-year performance periods ending December 31, 2024, and December 31, 2025, respectively.
• The number of units reported reflects the additional minimum number of units eligible to vest as a result of the crediting of restricted stock units in respect of dividend equivalent rights.
• The units remain subject to additional time-based vesting requirements.
• Following the reported transactions, Smart beneficially owns 293,869.517 shares of common stock and 61,440.0569 and 62,115.9268 restricted stock units.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the document simply reports routine insider transactions related to equity compensation.

Positives

• The acquisition of dividend equivalent rights suggests continued alignment of executive compensation with shareholder returns.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting requirements of the restricted stock units.

Industry Context

This filing is a routine disclosure of insider transactions, common in the real estate industry, where equity-based compensation is frequently used to align management interests with those of shareholders.

Comparison to Industry Standards

• Equity compensation is a standard practice among publicly traded REITs like Kilroy Realty.
• Companies such as Boston Properties (BXP) and Prologis (PLD) also utilize restricted stock units and performance-based equity awards as part of their executive compensation packages.
• The vesting schedules and performance metrics associated with these awards are typically aligned with long-term shareholder value creation, similar to the Kilroy Realty 2006 Incentive Award Plan.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders, as they primarily concern executive compensation and do not significantly alter the company's financial position.

Key Dates