Form 4: Kilroy Realty Officer Reports Stock Transactions

A. Robert Paratte, EVP and Chief Leasing Officer at Kilroy Realty, reported acquisitions of restricted stock units and a disposition of common stock for tax withholding.

Summary

• Executive Vice President and Chief Leasing Officer, A. Robert Paratte, reported changes in beneficial ownership of Kilroy Realty Corporation securities.
• On January 7, 2026, Paratte acquired 358.223 shares of common stock at a price of $0, representing restricted stock units for dividend equivalent rights.
• On January 9, 2026, Paratte disposed of 4,960 shares of common stock at $39.82 per share to cover tax withholding obligations.
• Following these transactions, Paratte's direct beneficial ownership of common stock is 79,792.9682 shares.
• On January 7, 2026, Paratte also acquired 395.2496 and 417.4965 restricted stock units, respectively, as dividend equivalent rights on performance units awarded in 2023 and 2024.
• These restricted stock units represent a contingent right to receive one share of common stock each and remain subject to additional time-based vesting requirements.

Sentiment

Score: 6

Explanation: The filing indicates routine executive compensation activities, including the acquisition of dividend equivalent rights on existing equity awards, which is generally positive for aligning management interests. However, the disposition of shares for tax withholding is a neutral, common event. The overall sentiment is slightly positive due to the continued accumulation of equity through dividend equivalents.

Positives

• Acquisition of additional restricted stock units (358.223 shares of common stock and 812.7461 derivative RSUs) indicates continued equity participation and alignment of executive interests with shareholders.
• The RSUs are granted in respect of dividend equivalent rights, suggesting the company is paying dividends or equivalent benefits on outstanding awards.

Negatives

• Disposition of 4,960 shares of common stock for tax withholding purposes reduces the executive's direct shareholding.

Future Outlook

The performance units awarded in 2023 and 2024 have three-year performance periods ending December 31, 2025, and December 31, 2026, respectively, and remain subject to additional time-based vesting requirements.

Industry Context

This Form 4 filing reflects routine executive compensation and tax-related transactions common in the real estate investment trust (REIT) sector, where equity awards are a standard component of executive pay, aligning management incentives with long-term shareholder value.

Stakeholder Impact

• Shareholders: The transactions reflect standard executive compensation practices, aligning management's interests with shareholder value through equity ownership. The disposition for tax withholding is a routine event and does not indicate a lack of confidence.

Next Steps

• The performance units awarded in 2023 will conclude their three-year performance period on December 31, 2025.
• The performance units awarded in 2024 will conclude their three-year performance period on December 31, 2026.
• The restricted stock units remain subject to additional time-based vesting requirements.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to executive compensation, including the acquisition of restricted stock units from dividend equivalent rights and the disposition of shares for tax withholding. These transactions are standard and do not indicate a significant change in the company's fundamental outlook or the executive's confidence. Therefore, the filing itself does not provide a basis for a change in investment recommendation, suggesting a 'hold' position for existing investors.

Keywords

Kilroy Realty, KRC, Form 4, Insider Trading, Stock Transaction, Restricted Stock Units, Dividend Equivalent Rights, Executive Compensation, Real Estate Investment Trust, REIT