Company Background

Financial Highlights

Common Stock Data

Consolidated Balance Sheets

Consolidated Statements of Operations

Funds From Operations and Funds Available for Distribution

Same Store Analysis

Stabilized Portfolio Occupancy Overview

Lease Commencement Information by Segment

Stabilized Portfolio Capital Expenditures

Lease Expiration Summary and Lease Expirations by Region

Top Fifteen Tenants

Dispositions

Stabilized Development Projects

Future Development Pipeline

Capital Structure

Debt Analysis

Board of Directors

Senior Management

Investor Relations

12200 W. Olympic Blvd., Suite 200

Los Angeles, CA 90064

(310) 481-8400

Web: www.kilroyrealty.com

E-mail: investorrelations@kilroyrealty.com

Equity Research Coverage

INCOME ITEMS (Including Discontinued Operations):

Revenues

Lease Termination Fees

Net Operating Income ⁽²⁾

Capitalized Interest and Debt Costs

Net (Loss) Income Available to Common Stockholders ⁽¹¹⁾

EBITDA ^(2)(3)(11)

Funds From Operations ^{(2)(4)(5)(11)}

Funds Available for Distribution ^{(2)(4)(5)(11)}

Net (Loss) Income Available to Common Stockholders per common share – diluted ⁽¹¹⁾

Funds From Operations per common share – diluted ⁽¹¹⁾

Dividends per share

RATIOS (Including Discontinued Operations):

Operating Margins

Interest Coverage Ratio ^(6)(11)

Fixed Charge Coverage Ratio ^(7)(11)

FFO Payout Ratio ^(8)(11)

FAD Payout Ratio ^(9)(11)

ASSETS:

Real Estate Held for Investment before Depreciation

Total Assets

CAPITALIZATION:

Total Debt ⁽¹⁰⁾

Total Preferred Equity and Noncontrolling Interests ⁽¹⁰⁾

Total Common Equity and Noncontrolling Interests ⁽¹⁰⁾

Total Market Capitalization ⁽¹⁰⁾

Total Debt / Total Market Capitalization

Total Debt and Preferred / Total Market Capitalization

High Price

Low Price

Closing Price

Dividends per share - annualized

Closing common shares (in 000’s) ^{(1) (2)}

Closing common partnership units (in 000’s) ⁽¹⁾

ASSETS:

Land and improvements

Buildings and improvements

Undeveloped land and construction in progress

Total real estate held for investment

Accumulated depreciation and amortization

Total real estate assets, net

Cash and cash equivalents

Restricted cash

Marketable securities

Current receivables, net

Deferred rent receivables, net

Notes receivable

Deferred leasing costs and acquisition-related intangibles, net

Deferred financing costs, net

Prepaid expenses and other assets, net

TOTAL ASSETS

LIABILITIES, NONCONTROLLING INTERESTS AND EQUITY:

Liabilities:

Secured debt

Exchangeable senior notes, net

Unsecured senior notes

Unsecured line of credit

Accounts payable, accrued expenses and other liabilities

Accrued distributions

Deferred revenue and acquisition-related liabilities

Rents received in advance and tenant security deposits

Total liabilities

Noncontrolling Interest:

7.45% Series A cumulative redeemable preferred units of the Operating Partnership

Equity:

Stockholders’ Equity

7.80% Series E Cumulative Redeemable Preferred stock

7.50% Series F Cumulative Redeemable Preferred stock

Common stock

Additional paid-in capital

Distributions in excess of earnings

Total stockholders’ equity

Noncontrolling Interest

Common units of the Operating Partnership

Total equity

TOTAL LIABILITIES, NONCONTROLLING INTERESTS AND EQUITY

REVENUES:

Rental income

Tenant reimbursements

Other property income

Total revenues

EXPENSES:

Property expenses

Real estate taxes

Provision for bad debts

Ground leases

General and administrative expenses

Interest expense

Depreciation and amortization

Total expenses

OTHER INCOME (LOSS):

Interest income and other net investment gains (losses)

Gain on early extinguishment of debt

Total other income (loss)

INCOME FROM CONTINUING OPERATIONS

DISCONTINUED OPERATIONS:

Revenues from discontinued operations

Expenses from discontinued operations

Net gain on dispositions of discontinued operations

Total income from discontinued operations

NET INCOME

Net loss (income) attributable to noncontrolling common units of the Operating Partnership

NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION

PREFERRED DISTRIBUTIONS AND DIVIDENDS:

Distributions on noncontrolling cumulative redeemable preferred units of the Operating Partnership

Preferred dividends

Total preferred distributions and dividends

NET (LOSS) INCOME AVAILABLE TO COMMON STOCKHOLDERS (2)

Weighted average common shares outstanding - basic

Weighted average common shares outstanding - diluted

NET (LOSS) INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE (2)

Net (loss) income available to common stockholders per share - basic

Net (loss) income available to common stockholders per share - diluted

FUNDS FROM OPERATIONS: ⁽²⁾

Net (loss) income available to common stockholders

Adjustments:

Net (loss) income attributable to noncontrolling common units of the Operating Partnership

Depreciation and amortization of real estate assets

Net gain on dispositions of discontinued operations

Funds From Operations ⁽³⁾

Weighted average common shares/units outstanding - basic ⁽⁴⁾

Weighted average common shares/units outstanding - diluted ⁽⁴⁾

FFO per common share/unit - basic ⁽³⁾

FFO per common share/unit - diluted ⁽³⁾

FUNDS AVAILABLE FOR DISTRIBUTION: ⁽²⁾

Funds From Operations ⁽³⁾

Adjustments:

Tenant improvements, leasing commissions and recurring capital expenditures

Amortization of deferred revenue related to tenant improvements ⁽⁵⁾

Net effect of straight-line rents ⁽⁶⁾

Amortization of other deferred revenue, net ⁽⁷⁾

Amortization of above/below market rents ⁽⁸⁾

Noncash amortization of exchangeable debt discount, net ⁽⁹⁾

Additional cash gain on early extinguishment of debt ⁽¹⁰⁾

Amortization of deferred financing costs and debt discount

Noncash amortization of share-based compensation awards