Form 4: Kilroy Realty EVP Paratte Reports Routine Stock Transactions
Statement of Changes in Beneficial Ownership
Kilroy Realty's EVP, Chief Leasing Officer A. Robert Paratte, reported the vesting and disposition of restricted stock units and common stock.
Summary
- A. Robert Paratte, Executive Vice President and Chief Leasing Officer of Kilroy Realty Corp, reported several transactions on February 5, 2026.
- Paratte acquired 12,796 shares of common stock through an award of restricted stock units (RSUs) under the 2006 Incentive Award Plan, with a value of $0 per share.
- An additional 82,897 shares of common stock were acquired through the exercise/conversion of derivative securities, also at $0 per share.
- Paratte disposed of 40,094 shares of common stock at a price of $34.31 per share to cover tax withholding obligations related to RSU vesting.
- The reporting person's direct beneficial ownership of common stock following these transactions is 135,391.9682 shares.
- In derivative securities, Paratte acquired 53,883.4708 restricted stock units, representing additional units vested from a 2023 performance award based on 2024 and 2025 performance.
- Paratte also acquired 29,060.2374 restricted stock units from a 2025 performance award, reflecting the minimum units eligible to vest based on 2025 performance.
- 82,897 restricted stock units from a 2023 performance award were converted into common stock, with the final number determined by performance through December 31, 2025.
Sentiment
Score: 5
Explanation: StockSavvy.ai views this as a neutral filing, as it details routine executive compensation events and does not contain new information that would significantly alter the company's financial or operational outlook.
Positives
- Vesting of 53,883.4708 performance units from a 2023 award indicates the company met performance targets for 2024 and 2025.
- Award of 29,060.2374 minimum performance units from a 2025 award demonstrates ongoing executive incentive alignment with future company performance.
- The potential for up to an additional 58,120.47 units to vest from the 2025 performance award provides a clear incentive for future strong company performance.
Negatives
- Disposition of 40,094 shares of common stock for tax withholding purposes reduces the executive's direct equity stake, though this is a standard practice for RSU vesting.
Future Outlook
The filing indicates that additional performance units, up to 58,120.47, may vest for the 2025 performance award based on Kilroy Realty Corp's performance over the three-year period ending December 31, 2027, subject to additional time-based vesting requirements.
Industry Context
StockSavvy.ai notes that Form 4 filings are standard disclosures for executive compensation and insider transactions, providing transparency into how management's equity holdings change due to vesting, awards, and tax-related dispositions. These routine filings are common across all publicly traded sectors, including real estate investment trusts (REITs) like Kilroy Realty Corp.
Related Party Transactions
- The transactions involve an executive officer (A. Robert Paratte) and the company (Kilroy Realty Corp) related to compensation, which are standard related-party dealings in the context of executive incentive plans.
Stakeholder Impact
- Shareholders: Provides transparency into executive compensation and equity ownership, confirming the execution of previously disclosed incentive plans.
- Employees: Reflects the company's ongoing executive compensation practices, which may influence broader compensation strategies.
Next Steps
- Additional time-based vesting requirements for the 2025 performance units will need to be met.
- The final number of units for the 2025 performance award will be determined based on the Issuer's performance for the three-year period ending December 31, 2027.
Key Dates
| Date | Description |
|---|---|
| 2023 | Year performance units were awarded covering a three-year performance period ending December 31, 2025. |
| 2025 | Year performance units were awarded covering a three-year performance period ending December 31, 2027. |
| 12/31/2025 | End of the three-year performance period for performance units awarded in 2023. |
| 01/31/2026 | Date through which dividend equivalents were adjusted for the 2023 performance units. |
| 02/05/2026 | Date of the earliest reported transaction. |
| 02/09/2026 | Signature date of the reporting person's attorney-in-fact. |
| 12/31/2027 | End of the three-year performance period for performance units awarded in 2025. |
Recommendation
holdThis Form 4 filing details routine executive compensation events, including the vesting of restricted stock units and the disposition of shares for tax purposes. It does not introduce new material information regarding the company's operational performance, strategic direction, or financial health that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate as the filing confirms expected compensation practices without altering the fundamental investment thesis for Kilroy Realty Corp.
Keywords
Kilroy Realty Corp, KRC, Form 4, SEC filing, beneficial ownership, restricted stock units, RSU vesting, executive compensation, insider transaction, performance units, stock award
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