8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 27, 2022

KILROY REALTY CORPORATION

(Exact name of registrant as specified in its charter)

Maryland	001-12675	95-4598246
(State or other jurisdiction of incorporation or organization)	(Commission File No.)	(I.R.S. Employer Identification No.)

12200 W. Olympic Boulevard, Suite 200, Los Angeles, California, 90064

(Address of principal executive offices) (Zip Code)

(310) 481-8400

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Registrant	Title of each class	Name of each exchange on which registered	Ticker Symbol
Kilroy Realty Corporation	Common Stock, $.01 par value	New York Stock Exchange	KRC

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition.

On April 27, 2022, Kilroy Realty Corporation issued a press release announcing its earnings for the quarter ended March 31, 2022 and distributed certain supplemental financial information. On April 27, 2022, Kilroy Realty Corporation also posted the supplemental information on its website located at www.kilroyrealty.com. The text of the supplemental information and the related press release are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Exhibits 99.1 and 99.2 are being furnished pursuant to Item 2.02 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act regardless of any general incorporation language in such filing.

Item 7.01    Regulation FD Disclosure.

As discussed in Item 2.02 above, Kilroy Realty Corporation issued a press release announcing its earnings for the quarter ended March 31, 2022 and distributed certain supplemental information. On April 27, 2022, Kilroy Realty Corporation also posted the supplemental information on its website located at www.kilroyrealty.com.

The information being furnished pursuant to Item 7.01 shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act regardless of any general incorporation language in such filing.

Item 9.01    Financial Statements and Exhibits.

(a)	Financial statements of businesses acquired: None.
(b)	Pro forma financial information: None.
(c)	Shell company transactions: None.
(d)	Exhibits:

The following exhibits are furnished with this Current Report on Form 8-K:

Exhibit No.	Description
99.1**	Supplemental Operating and Financial Data for the quarter ended March 31, 2022
99.2**	Press Release dated April 27, 2022 regarding first quarter 2022 earnings
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

_______________

**    Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Kilroy Realty Corporation
Date: April 27, 2022
	By:	/s/ Merryl E. Werber
		Merryl E. Werber Senior Vice President, Chief Accounting Officer and Controller

EX-99.1

Q1 2022 Supplemental Financial Report

Table of Contents

	Page
Corporate Data and Financial Highlights
Company Background	1
Executive Summary	2
Financial Highlights	3
Market Capitalization and Common Stock Data	4
Net Income Available to Common Stockholders / FFO Guidance and Outlook	5
Consolidated Balance Sheets	6
Consolidated Statements of Operations	7
Funds From Operations and Funds Available for Distribution	8-9
Net Operating Income	10
Portfolio Data
Same Store Analysis	12
Stabilized Portfolio Occupancy Overview by Region	13-17
Information on Leases Commenced & Leases Executed	18
Stabilized Portfolio Capital Expenditures	19
Stabilized Portfolio Lease Expirations	20-21
Top Fifteen Tenants	22
Consolidated Ventures (Noncontrolling Property Partnerships)	23
Development
In-Process Development & Redevelopment	25
Future Development Pipeline	26
Debt and Capitalization Data
Capital Structure	28
Debt Analysis	29
Non-GAAP Supplemental Measures	31-33
Definitions & Reconciliations	35-38

This Supplemental Financial Report 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. These statements include, among other things, information concerning lease expirations, debt maturities, potential investments, development and redevelopment activity, projected construction costs, dispositions and other forward-looking financial data. In some instances, forward-looking statements can be identified by the use of forward-looking terminology such as “expect,” “future,” “will,” “would,” “pursue,” or “project” and variations of such words and similar expressions that do not relate to historical matters. Forward-looking statements are based on Kilroy Realty Corporation’s 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 Kilroy Realty Corporation’s control. Accordingly, actual performance, results and events may vary materially from those indicated or implied 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, Texas 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 enactment or implementations of, tax laws or other 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; our ability to maintain our status as a REIT; and uncertainties regarding the impact of the COVID-19 pandemic, and restrictions intended to prevent its spread, on our business and the economy generally. 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 Kilroy Realty Corporation’s business and financial performance, see the factors included under the caption “Risk Factors” in Kilroy Realty Corporation’s annual report on Form 10-K for the year ended December 31, 2021, and its other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. Kilroy Realty Corporation assumes no obligation to update any forward-looking statement made in this Supplemental Financial Report 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.

Pictured on cover page, in order of appearance: 10615 Burnet Rd І Austin, TX, 26th Street І Santa Monica, CA, Netflix // On Vine І Hollywood, CA

01

Corporate Data and Financial Highlights

–Company Background

–Executive Summary

–Financial Highlights

–Market Capitalization and Common Stock Data

–Net Income Available to Common Stockholders / FFO Guidance and Outlook

–Consolidated Balance Sheets

–Consolidated Statements of Operations

–Funds From Operations and Funds Available for Distribution

–Net Operating Income

Q1 2022 Supplemental Financial Report

Company Background

Kilroy Realty Corporation (NYSE: KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin, Texas. The Company has over seven decades of experience developing, acquiring and managing office, life science and mixed-use real estate assets. At March 31, 2022, the Company’s stabilized portfolio totaled approximately 15.2 million square feet of primarily office and life science space that was 91.3% occupied and 93.1% leased. The Company also has 1,001 residential units in the Los Angeles and San Diego regions, which had an average occupancy of 93.7% for the quarter ended March 31, 2022. 

Board of Directors		Executive and Senior Management Team		Investor Relations
John Kilroy	Chairman	John Kilroy	Chief Executive Officer	12200 W. Olympic Blvd., Suite 200 Los Angeles, CA 90064 (310) 481-8400 Web: www.kilroyrealty.com E-mail: investorrelations@kilroyrealty.com
Edward F. Brennan, PhD	Lead Independent	Tyler H. Rose	President
Jolie Hunt		Robert Paratte	Executive VP, Leasing and Business Development
Scott S. Ingraham		Heidi R. Roth	Executive VP, Chief Administrative Officer
Louisa G. Ritter		Justin W. Smart	Executive VP, Development and Construction Services
Gary R. Stevenson		John Osmond	Executive VP, Head of Asset Management	Bill Hutcheson
Peter B. Stoneberg		Eliott Trencher	Executive VP, Chief Investment Officer, Interim Chief Financial Officer and Treasurer	Senior VP, Investor Relations & Capital Markets
		Merryl Werber	Senior VP, Chief Accounting Officer and Controller

Equity Research Coverage
BofA Securities		J.P. Morgan
James Feldman	(646) 855-5808	Anthony Paolone	(212) 622-6682
BMO Capital Markets Corp.		KeyBanc Capital Markets
John P. Kim	(212) 885-4115	Todd M. Thomas	(917) 368-2286
BTIG		Mizuho Securities USA LLC
Thomas Catherwood	(212) 738-6140	Vikram Malhotra	(212) 282-3827
Citigroup Investment Research		RBC Capital Markets
Emmanuel Korchman	(212) 816-1382	Mike Carroll	(440) 715-2649
Deutsche Bank Securities, Inc.		Robert W. Baird & Co.
Derek Johnston	(210) 250-5683	David B. Rodgers	(216) 737-7341
Evercore ISI		Scotiabank
Steve Sakwa	(212) 446-9462	Nicholas Yulico	(212) 225-6904
Goldman Sachs & Co. LLC		Wells Fargo
Caitlin Burrows	(212) 902-4736	Blaine Heck	(443) 263-6529
Green Street Advisors		Wolfe Research
Daniel Ismail	(949) 640-8780	Andrew Rosivach	(646) 582-9250
Jefferies LLC
Peter Abramowitz	(212) 336-7241

Kilroy Realty Corporation is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Kilroy Realty Corporation’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Kilroy Realty Corporation or its management. Kilroy Realty Corporation does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.

1

Q1 2022 Supplemental Financial Report

Executive Summary

Quarterly Financial Highlights	Quarterly Operating Highlights
• Net income available to common stockholders per share of $0.45, including a net	• Stabilized portfolio was91.3%occupied and 93.1% leased at quarter-end
$0.02 per share of non-recurring income
	• 217,241 square feet of leases commenced in the stabilized portfolio
• FFO per share of $1.16, including the net $0.02 per share noted above
	• 183,251 square feet of leases executed in the stabilized portfolio
• Revenues of $265.5 million
	◦GAAP rents increased approximately 32.9% from prior levels
• Same Store NOI increased 9.1% compared to the prior year
	◦Cash rents increased approximately 6.7% from prior levels
• Same Store Cash NOI increased 12.8% compared to the prior year
Capital Markets Highlights	Strategic Highlights
• As of the date of this report, approximately $1.3 billion of total liquidity comprised	• In March, completed the acquisition of a 2.9-acre land site in the Stadium District of
of $175.0 million of cash and cash equivalents and full availability under the	Austin, adjacent to the Domain, for a cash purchase price of $40.0 million. The site
$1.1 billion unsecured revolving credit facility	is also adjacent to Austin’s MLS Q2 Stadium and is fully-entitled for approximately
	493,000 square feet of new Class A office development
	• In March, commenced construction on the life science redevelopments of 12400
	High Bluff Drive in the Del Mar submarket and 4690 Executive Drive in the
	University Towne Center submarket of San Diego in connection with executed
	leases

________________________

Note: Definitions for commonly used terms in this Supplemental Financial Report are on pages 35-36 “Definitions Included in Supplemental.”

2

Q1 2022 Supplemental Financial Report

Financial Highlights

(unaudited, $ in thousands, except per share amounts)

		Three Months Ended
		3/31/2021 (1)			6/30/2021 (1)			9/30/2021			12/31/2021 (1)			3/31/2022
INCOME ITEMS:
	Capitalized Interest and Debt Costs	16,908			18,073			23,447			21,773			19,098
	Net Income Available to Common Stockholders	497,631			35,839			47,028			47,646			53,128
	Net Income Available to Common Stockholders per common share – diluted (2)	$	4.26		$	0.30		$	0.40		$	0.40		$	0.45
	Funds From Operations per common share – diluted (3)	$	0.98		$	0.88		$	0.98		$	1.05		$	1.16
RATIOS:
	Net Operating Income Margins	72.0		%	71.4		%	71.3		%	73.5		%	72.5		%
	Fixed Charge Coverage Ratio	4.0x			3.7x			3.8x			4.4x			4.5x
	FFO Payout Ratio	50.6		%	56.2		%	52.7		%	48.7		%	44.5		%
	FAD Payout Ratio	75.3		%	76.2		%	54.1		%	68.7		%	55.3		%

______________________________________________________

Note: Definitions for commonly used terms in this Supplemental Financial Report are on pages 35-36 “Definitions Included in Supplemental.”

(1)Net Income Available to Common Stockholders also includes $5.3 million, $0.5 million, and $457.3 million of gains on sale of depreciable operating properties for the three months ended December 31, 2021, June 30, 2021, and March 31, 2021, respectively.

(2)Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.

(3)Please refer to page 8 for reconciliations of GAAP Net Income Available to Common Stockholders to Funds From Operations available to common stockholders and unitholders and Funds Available for Distribution to common stockholders and unitholders and page 9 for a reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution to common stockholders and unitholders.

(4)Please refer to pages 37-38 for reconciliations of GAAP Net Income Available to Common Stockholders to Net Operating Income and EBITDA, as adjusted. The Company’s calculation of EBITDA, as adjusted, is the same as EBITDAre, as defined by NAREIT, as the Company does not have any unconsolidated joint ventures.

3

Q1 2022 Supplemental Financial Report

Market Capitalization and Common Stock Data

(unaudited, $ and shares/units in thousands, except per share amounts)

Market Capitalization(1)

Dividends per common share (2)	$	0.50	$	0.50	$	0.52	$	0.52	$	0.52
Closing common shares (3)	116,450		116,454		116,462		116,464		116,716
Closing common partnership units (3)	1,151		1,151		1,151		1,151		1,151
	117,601		117,605		117,613		117,615		117,867

______________________________________________________

(1)Please refer to page 28 for additional information regarding our capital structure.

(2)Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.

(3)As of the end of the period.

4

Q1 2022 Supplemental Financial Report

Net Income Available to Common Stockholders / FFO Guidance and Outlook

(unaudited, $ and shares/units in thousands, except per share amounts)

The Company is providing an updated guidance range of NAREIT-defined FFO per diluted share for its fiscal year 2022 of $4.44 to $4.58 per share with a midpoint of $4.51 per share.

	Full Year 2022 Range
	Low End		High End
Net income available to common stockholders per share - diluted	$	1.78	$	1.92
Weighted average common shares outstanding - diluted (1)	117,850		117,850
Net income available to common stockholders	$	210,000	$	226,000
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership	2,250		2,650
Net income attributable to noncontrolling interests in consolidated property partnerships	24,500		25,500
Depreciation and amortization of real estate assets	327,000		327,000
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships	(35,250)		(36,250)
Funds From Operations (2)	$	528,500	$	544,900
Weighted average common shares and units outstanding - diluted (3)	119,050		119,050
FFO per common share/unit - diluted (3)	$	4.44	$	4.58

Key 2022 assumptions:

•Dispositions of $200.0 million to $500.0 million

•Same Store Cash NOI growth of 5.0% to 6.0% (2)

•Year-end occupancy of approximately 91.0% to 92.0%

•Total remaining development spending of approximately $500.0 million to $575.0 million

________________________

(1)Calculated based on estimated weighted average shares outstanding including non-participating share-based awards.

(2)See pages 32-33 for Management Statements on Funds From Operations and Same Store Cash Net Operating Income.

(3)Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.

The Company’s guidance estimates for the full year 2022, and the reconciliation of net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this report, reflect management’s views on current and future market conditions, including assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this report. Although these guidance estimates reflect the impact on the Company’s operating results of an assumed range of future disposition activity, these guidance estimates do not include any estimates of possible future gains or losses from possible future dispositions because the magnitude of gains or losses on sales of depreciable operating properties, if any, will depend on the sales price and depreciated cost basis of the disposed assets at the time of disposition, information that is not known at the time the Company provides guidance, and the timing of any gain recognition will depend on the closing of the dispositions, information that is also not known at the time the Company provides guidance and may occur after the relevant guidance period. We caution you not to place undue reliance on our assumed range of future disposition activity because any potential future disposition transactions will ultimately depend on the market conditions and other factors, including but not limited to the Company’s capital needs, the particular assets being sold and the Company’s ability to defer some or all of the taxable gain on the sales. These guidance estimates also do not include the impact on operating results from potential future acquisitions, possible capital markets activity, possible future impairment charges or any events outside of the Company’s control. There can be no assurance that the Company’s actual results will not differ materially from these estimates.

5

Q1 2022 Supplemental Financial Report

Consolidated Balance Sheets

(unaudited, $ in thousands)

	3/31/2022		12/31/2021		9/30/2021		6/30/2021		3/31/2021
ASSETS:
Land and improvements	$	1,715,192	$	1,731,982	$	1,702,423	$	1,551,653	$	1,539,542
Buildings and improvements	7,509,311		7,543,585		7,282,341		6,682,208		6,480,857
Undeveloped land and construction in progress	2,158,279		2,017,126		2,237,742		2,318,215		1,771,762
Total real estate assets held for investment	11,382,782		11,292,693		11,222,506		10,552,076		9,792,161
Accumulated depreciation and amortization	(2,034,193)		(2,003,656)		(1,962,730)		(1,900,740)		(1,838,338)
Total real estate assets held for investment, net	9,348,589		9,289,037		9,259,776		8,651,336		7,953,823
Cash and cash equivalents	331,685		414,077		348,417		519,307		657,819
Restricted cash	13,007		13,006		13,042		450,457		1,028,759
Marketable securities	25,829		27,475		27,285		25,885		24,089
Current receivables, net	12,107		14,386		11,646		9,773		12,855
Deferred rent receivables, net	420,895		405,665		394,297		384,475		370,470
Deferred leasing costs and acquisition-related intangible assets, net	228,426		234,458		229,334		184,510		190,721
Right of use ground lease assets	126,946		127,302		127,657		141,529		95,312
Prepaid expenses and other assets, net	57,338		57,991		60,063		67,494		50,505
TOTAL ASSETS	$	10,564,822	$	10,583,397	$	10,471,517	$	10,434,766	$	10,384,353
LIABILITIES AND EQUITY:
Liabilities:
Secured debt, net	$	247,030	$	248,367	$	249,690	$	251,000	$	252,298
Unsecured debt, net	3,821,433		3,820,383		3,673,183		3,672,152		3,671,094
Accounts payable, accrued expenses and other liabilities	391,920		391,264		441,357		429,168		408,552
Ground lease liabilities	125,414		125,550		125,676		143,885		97,617
Accrued dividends and distributions	61,951		61,850		61,845		59,455		59,472
Deferred revenue and acquisition-related intangible liabilities, net	171,121		171,151		160,687		122,902		123,794
Rents received in advance and tenant security deposits	80,192		74,962		68,441		62,739		68,634
Total liabilities	4,899,061		4,893,527		4,780,879		4,741,301		4,681,461
Equity:
Stockholders’ Equity
Common stock	1,167		1,165		1,165		1,165		1,165
Additional paid-in capital	5,149,968		5,155,232		5,146,049		5,134,320		5,122,584
Retained earnings	274,193		283,663		297,250		311,458		334,496
Total stockholders’ equity	5,425,328		5,440,060		5,444,464		5,446,943		5,458,245
Noncontrolling Interests
Common units of the Operating Partnership	53,472		53,746		53,788		53,810		53,930
Noncontrolling interests in consolidated property partnerships	186,961		196,064		192,386		192,712		190,717
Total noncontrolling interests	240,433		249,810		246,174		246,522		244,647
Total equity	5,665,761		5,689,870		5,690,638		5,693,465		5,702,892
TOTAL LIABILITIES AND EQUITY	$	10,564,822	$	10,583,397	$	10,471,517	$	10,434,766	$	10,384,353

6

Q1 2022 Supplemental Financial Report

Consolidated Statements of Operations

(unaudited, $ and shares in thousands, except per share amounts)

	Three Months Ended March 31,
	2022		2021
REVENUES
Rental income	$	263,208	$	234,656
Other property income	2,293		990
Total revenues	265,501		235,646
EXPENSES
Property expenses	45,424		38,859
Real estate taxes	25,870		25,266
Ground leases	1,826		1,828
General and administrative expenses	22,781		21,985
Leasing costs	1,013		692
Depreciation and amortization	88,660		75,932
Total expenses	185,574		164,562
OTHER INCOME (EXPENSES)
Interest and other income, net	81		1,373
Interest expense	(20,625)		(22,334)
Gains on sales of depreciable operating properties	—		457,288
Total other (expenses) income	(20,544)		436,327
NET INCOME	59,383		507,411
Net income attributable to noncontrolling common units of the Operating Partnership	(516)		(4,886)
Net income attributable to noncontrolling interests in consolidated property partnerships	(5,739)		(4,894)
Total income attributable to noncontrolling interests	(6,255)		(9,780)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	53,128	$	497,631
Weighted average common shares outstanding – basic	116,650		116,344
Weighted average common shares outstanding – diluted	117,060		116,801
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE
Net income available to common stockholders per share – basic	$	0.45	$	4.27
Net income available to common stockholders per share – diluted	$	0.45	$	4.26

7

Q1 2022 Supplemental Financial Report

Funds From Operations and Funds Available for Distribution

(unaudited, $ in thousands, except per share amounts)

	Three Months Ended March 31,
	2022		2021
FUNDS FROM OPERATIONS: (1)
Net income available to common stockholders	$	53,128	$	497,631
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership	516		4,886
Net income attributable to noncontrolling interests in consolidated property partnerships	5,739		4,894
Depreciation and amortization of real estate assets	87,001		74,431
Gains on sales of depreciable real estate	—		(457,288)
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships	(8,618)		(8,310)
Funds From Operations (1)(2)	$	137,766	$	116,244
Weighted average common shares/units outstanding – basic (3)	118,628		118,333
Weighted average common shares/units outstanding – diluted (4)	119,038		118,790
FFO per common share/unit – basic (1)	$	1.16	$	0.98
FFO per common share/unit – diluted (1)	$	1.16	$	0.98
FUNDS AVAILABLE FOR DISTRIBUTION: (1)
Funds From Operations (1)(2)	$	137,766	$	116,244
Adjustments:
Recurring tenant improvements, leasing commissions and capital expenditures	(13,285)		(26,909)
Amortization of deferred revenue related to tenant-funded tenant improvements (2)(5)	(4,261)		(4,204)
Net effect of straight-line rents	(15,230)		(16,893)
Amortization of net below market rents (6)	(2,892)		(1,181)
Amortization of deferred financing costs and net debt discount/premium	821		794
Non-cash executive compensation expense (7)	5,256		8,256
Lease related adjustments, leasing costs and other (8)	1,264		1,635
Adjustments attributable to noncontrolling interests in consolidated property partnerships	1,455		364
Funds Available for Distribution (1)	$	110,894	$	78,106

________________________

(1)See page 33 for Management Statements on Funds From Operations and Funds Available for Distribution. Reported per common share/unit amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.

(2)FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of $4.3 million and $4.2 million for the three months ended March 31, 2022 and 2021, respectively. These amounts are adjusted out of FFO in our calculation of FAD.

(3)Calculated based on weighted average shares outstanding including participating share-based awards and assuming the exchange of all common limited partnership units outstanding.

(4)Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of stock options and contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.

(5)Represents revenue recognized during the period as a result of the amortization of deferred revenue recorded for tenant-funded tenant improvements.

(6)Represents the non-cash adjustment related to the acquisition of buildings with above and/or below market rents.

(7)Includes non-cash amortization of share-based compensation and accrued potential future executive retirement benefits.

(8)Includes other cash and non-cash adjustments attributable to lease-related matters including GAAP revenue recognition timing differences, leasing costs and other.

8

Q1 2022 Supplemental Financial Report

Reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution

(unaudited, $ in thousands)

	Three Months Ended March 31,
	2022		2021
GAAP Net Cash Provided by Operating Activities	$	178,659	$	144,152
Adjustments:
Recurring tenant improvements, leasing commissions and capital expenditures	(13,285)		(26,909)
Depreciation of non-real estate furniture, fixtures and equipment	(1,659)		(1,501)
Net changes in operating assets and liabilities (1)	(40,821)		(27,278)
Noncontrolling interests in consolidated property partnerships’ share of FFO and FAD	(7,163)		(7,946)
Cash adjustments related to investing and financing activities	(4,837)		(2,412)
Funds Available for Distribution (2)	$	110,894	$	78,106

_______________________

(1)Primarily includes changes in the following assets and liabilities: marketable securities; current receivables; prepaid expenses and other assets; accounts payable, accrued expenses and other liabilities; and rents received in advance and tenant security deposits. 

(2)Please refer to page 33 for a Management Statement on Funds Available for Distribution.

9

Q1 2022 Supplemental Financial Report

Net Operating Income (1)

(unaudited, $ in thousands)

	Three Months Ended March 31,
	2022		2021		% Change
Operating Revenues:
Rental income (2)	$	226,272	$	203,212	11.3	%
Tenant reimbursements (2)	36,936		31,444		17.5	%
Other property income	2,293		990		131.6	%
Total operating revenues	265,501		235,646		12.7	%
Operating Expenses:
Property expenses	45,424		38,859		16.9	%
Real estate taxes	25,870		25,266		2.4	%
Ground leases	1,826		1,828		(0.1)	%
Total operating expenses	73,120		65,953		10.9	%
Net Operating Income	$	192,381	$	169,693	13.4	%

________________________

(1)Please refer to page 31 for Management Statements on Net Operating Income and page 37 for a reconciliation of GAAP Net Income Available to Common Stockholders to Net Operating Income.

(2)Revenue from tenant reimbursements is included in rental income on our consolidated statements of operations.

10

02

Portfolio Data

–Same Store Analysis

–Stabilized Portfolio Occupancy Overview by Region

–Information on Leases Commenced & Leases Executed

–Stabilized Portfolio Capital Expenditures

–Stabilized Portfolio Lease Expirations

–Top Fifteen Tenants

–Consolidated Ventures (Noncontrolling Property Partnerships)

Q1 2022 Supplemental Financial Report

Same Store Analysis (1)

(unaudited, $ in thousands)

		Three Months Ended March 31,
		2022			2021			% Change
	Total Same Store Portfolio
	Office Portfolio
	Number of properties	112			112
	Square Feet	13,733,621			13,733,621
	Percent of Stabilized Portfolio	90.2		%	97.8		%
	Average Occupancy	90.5		%	91.4		%
	Operating Revenues:
	Rental income (2)	$	187,854		$	176,041		6.7	%
	Tenant reimbursements (2)	30,235			25,056			20.7	%
	Other property income	1,788			965			85.3	%
	Total operating revenues	219,877			202,062			8.8	%
	Operating Expenses:
	Property expenses	39,442			35,048			12.5	%
	Real estate taxes	21,506			21,053			2.2	%
	Ground leases	1,738			1,828			(4.9)	%
	Total operating expenses	62,686			57,929			8.2	%
	Net Operating Income	$	157,191		$	144,133		9.1	%
Same Store Analysis (Cash Basis) (3)
		Three Months Ended March 31,
		2022			2021			% Change
	Total operating revenues	$	211,278		$	189,691		11.4	%
	Total operating expenses	62,581			57,838			8.2	%
	Cash Net Operating Income	$	148,697		$	131,853		12.8	%

________________________

(1)Same Store is defined as all properties owned and included in our stabilized portfolio as of January 1, 2021 and still owned and included in the stabilized portfolio as of March 31, 2022. Same Store includes 100% of consolidated property partnerships as well as the residential tower at Columbia Square and the residential units at our One Paseo mixed-use project.

(2)Revenue from tenant reimbursements is included in rental income on our consolidated statements of operations.

(3)Please refer to page 37 for a reconciliation of GAAP Net Income Available to Common Stockholders to Same Store Net Operating Income and Same Store Cash Net Operating Income.

12

Q1 2022 Supplemental Financial Report

Stabilized Portfolio Occupancy Overview by Region

		Portfolio Breakdown					Occupied at				Leased at
STABILIZED OFFICE PORTFOLIO (1)	Buildings	YTD NOI %		SF %		Total SF	3/31/2022		12/31/2021		3/31/2022
Greater Los Angeles
Culver City	19	1.2	%	1.0	%	151,908	100.0	%	100.0	%	100.0	%
El Segundo	5	4.1	%	7.3	%	1,103,595	93.2	%	94.1	%	93.2	%
Hollywood	10	7.6	%	7.9	%	1,200,419	89.5	%	89.4	%	90.2	%
Long Beach	7	2.0	%	6.3	%	955,291	76.1	%	77.9	%	76.8	%
West Hollywood	4	0.9	%	1.2	%	189,260	71.2	%	71.3	%	77.5	%
West Los Angeles	10	4.7	%	5.6	%	856,847	82.1	%	81.0	%	88.2	%
Total Greater Los Angeles	55	20.5	%	29.3	%	4,457,320	85.7	%	86.1	%	87.5	%
San Diego County
Del Mar	15	12.0	%	9.6	%	1,461,845	96.5	%	96.7	%	99.4	%
I-15 Corridor	3	1.2	%	2.9	%	441,560	60.2	%	94.7	%	60.2	%
Point Loma	1	0.5	%	0.7	%	107,456	96.5	%	96.5	%	100.0	%
University Towne Center	1	1.1	%	1.1	%	160,444	100.0	%	92.4	%	100.0	%
Total San Diego County	20	14.8	%	14.3	%	2,171,305	89.4	%	95.9	%	91.5	%
San Francisco Bay Area
Menlo Park	7	2.0	%	2.5	%	378,358	74.2	%	74.2	%	80.3	%
Mountain View	3	2.6	%	3.0	%	457,066	87.2	%	87.2	%	99.9	%
Palo Alto	2	1.3	%	1.1	%	165,574	100.0	%	100.0	%	100.0	%
Redwood City	2	3.2	%	2.3	%	347,269	100.0	%	100.0	%	100.0	%
San Francisco	10	27.8	%	22.3	%	3,394,039	91.6	%	90.7	%	93.6	%
South San Francisco	6	8.8	%	5.3	%	806,109	100.0	%	100.0	%	100.0	%
Sunnyvale	4	4.2	%	4.3	%	663,460	100.0	%	100.0	%	100.0	%
Total San Francisco Bay Area	34	49.9	%	40.8	%	6,211,875	92.9	%	92.4	%	95.3	%
Greater Seattle
Bellevue	2	5.5	%	6.0	%	919,295	99.0	%	93.7	%	99.1	%
Denny Regrade	1	3.8	%	3.5	%	539,226	99.7	%	100.0	%	99.7	%
Lake Union	6	5.5	%	6.1	%	922,891	99.1	%	99.1	%	99.1	%
Total Greater Seattle	9	14.8	%	15.6	%	2,381,412	99.2	%	97.2	%	99.3	%
TOTAL STABILIZED OFFICE PORTFOLIO	118	100.0	%	100.0	%	15,221,912	91.3	%	91.9	%	93.1	%

Average Office Occupancy

Quarter-to-Date

91.4%

________________________

(1)Includes stabilized retail space, which contributed approximately3.2% of YTD NOI.

13

Q1 2022 Supplemental Financial Report

Stabilized Portfolio Occupancy Overview by Region, continued

	Submarket	Square Feet	Occupied		Leased
Greater Los Angeles, California
3101-3243 La Cienega Boulevard	Culver City	151,908	100.0	%	100.0	%
2240 E. Imperial Highway	El Segundo	122,870	100.0	%	100.0	%
2250 E. Imperial Highway	El Segundo	298,728	96.9	%	96.9	%
2260 E. Imperial Highway	El Segundo	298,728	100.0	%	100.0	%
909 N. Pacific Coast Highway	El Segundo	244,880	88.3	%	88.3	%
999 N. Pacific Coast Highway	El Segundo	138,389	73.5	%	73.5	%
1350 Ivar Avenue	Hollywood	16,448	100.0	%	100.0	%
1355 Vine Street	Hollywood	183,129	100.0	%	100.0	%
1375 Vine Street	Hollywood	159,236	100.0	%	100.0	%
1395 Vine Street	Hollywood	2,575	100.0	%	100.0	%
1500 N. El Centro Avenue (1)	Hollywood	113,447	28.8	%	28.8	%
1525 N. Gower Street	Hollywood	9,610	100.0	%	100.0	%
1575 N. Gower Street	Hollywood	264,430	100.0	%	100.0	%
6115 W. Sunset Boulevard	Hollywood	26,238	80.0	%	80.0	%
6121 W. Sunset Boulevard	Hollywood	93,418	100.0	%	100.0	%
6255 W. Sunset Boulevard	Hollywood	331,888	87.9	%	90.6	%
3750 Kilroy Airport Way	Long Beach	10,718	100.0	%	100.0	%
3760 Kilroy Airport Way	Long Beach	166,761	91.5	%	95.5	%
3780 Kilroy Airport Way	Long Beach	221,452	83.1	%	83.1	%
3800 Kilroy Airport Way	Long Beach	192,476	87.7	%	87.7	%
3840 Kilroy Airport Way (1)	Long Beach	136,026	0.0	%	0.0	%
3880 Kilroy Airport Way	Long Beach	96,923	100.0	%	100.0	%
3900 Kilroy Airport Way	Long Beach	130,935	86.7	%	86.7	%
8560 W. Sunset Boulevard (1)	West Hollywood	76,359	39.1	%	49.3	%
8570 W. Sunset Boulevard	West Hollywood	49,276	95.0	%	95.0	%
8580 W. Sunset Boulevard	West Hollywood	6,875	41.0	%	100.0	%
8590 W. Sunset Boulevard	West Hollywood	56,750	97.4	%	97.4	%
12100 W. Olympic Boulevard	West Los Angeles	155,679	65.8	%	99.0	%
12200 W. Olympic Boulevard	West Los Angeles	150,832	90.2	%	90.2	%
12233 W. Olympic Boulevard	West Los Angeles	160,094	74.4	%	74.4	%
12312 W. Olympic Boulevard	West Los Angeles	76,644	100.0	%	100.0	%
1633 26th Street	West Los Angeles	43,857	69.9	%	69.9	%
2100/2110 Colorado Avenue	West Los Angeles	102,864	100.0	%	100.0	%
3130 Wilshire Boulevard	West Los Angeles	90,074	84.0	%	84.0	%
501 Santa Monica Boulevard	West Los Angeles	76,803	78.5	%	78.5	%
Total Greater Los Angeles		4,457,320	85.7	%	87.5	%

________________________

(1)This property is part of a complex of properties and is analyzed at the complex level.

14

Q1 2022 Supplemental Financial Report

Stabilized Portfolio Occupancy Overview by Region, continued

	Submarket	Square Feet	Occupied		Leased
San Diego County, California
12225 El Camino Real	Del Mar	58,401	100.0	%	100.0	%
12235 El Camino Real	Del Mar	53,751	100.0	%	100.0	%
12390 El Camino Real	Del Mar	69,421	100.0	%	100.0	%
12770 El Camino Real	Del Mar	75,035	100.0	%	100.0	%
12780 El Camino Real	Del Mar	140,591	100.0	%	100.0	%
12790 El Camino Real	Del Mar	87,944	100.0	%	100.0	%
12830 El Camino Real	Del Mar	196,444	93.1	%	100.0	%
12860 El Camino Real	Del Mar	92,042	100.0	%	100.0	%
12348 High Bluff Drive	Del Mar	39,193	83.6	%	100.0	%
3579 Valley Centre Drive	Del Mar	54,960	100.0	%	100.0	%
3611 Valley Centre Drive	Del Mar	132,425	96.4	%	96.4	%
3661 Valley Centre Drive	Del Mar	131,662	87.4	%	100.0	%
3721 Valley Centre Drive	Del Mar	115,193	100.0	%	100.0	%
3811 Valley Centre Drive	Del Mar	118,912	100.0	%	100.0	%
3745 Paseo Place	Del Mar	95,871	89.4	%	95.9	%
13480 Evening Creek Drive North (1)	I-15 Corridor	154,157	5.6	%	5.6	%
13500 Evening Creek Drive North	I-15 Corridor	143,749	100.0	%	100.0	%
13520 Evening Creek Drive North	I-15 Corridor	143,654	78.9	%	78.9	%
2305 Historic Decatur Road	Point Loma	107,456	96.5	%	100.0	%
9455 Towne Centre Drive	University Towne Center	160,444	100.0	%	100.0	%
Total San Diego County		2,171,305	89.4	%	91.5	%

________________________

(1)This property is part of a complex of properties and is analyzed at the complex level.

15

Q1 2022 Supplemental Financial Report

Stabilized Portfolio Occupancy Overview by Region, continued

	Submarket	Square Feet	Occupied		Leased
San Francisco Bay Area, California
4100 Bohannon Drive	Menlo Park	47,379	100.0	%	100.0	%
4200 Bohannon Drive	Menlo Park	45,451	70.8	%	70.8	%
4300 Bohannon Drive	Menlo Park	63,079	48.7	%	85.3	%
4400 Bohannon Drive (1)	Menlo Park	48,146	21.3	%	21.3	%
4500 Bohannon Drive	Menlo Park	63,078	100.0	%	100.0	%
4600 Bohannon Drive	Menlo Park	48,147	70.7	%	70.7	%
4700 Bohannon Drive	Menlo Park	63,078	100.0	%	100.0	%
1290-1300 Terra Bella Avenue (1)	Mountain View	114,175	48.9	%	99.7	%
680 E. Middlefield Road	Mountain View	171,676	100.0	%	100.0	%
690 E. Middlefield Road	Mountain View	171,215	100.0	%	100.0	%
1701 Page Mill Road	Palo Alto	128,688	100.0	%	100.0	%
3150 Porter Drive	Palo Alto	36,886	100.0	%	100.0	%
900 Jefferson Avenue	Redwood City	228,505	100.0	%	100.0	%
900 Middlefield Road	Redwood City	118,764	100.0	%	100.0	%
100 Hooper Street	San Francisco	417,914	100.0	%	100.0	%
100 First Street	San Francisco	480,457	92.3	%	96.3	%
303 Second Street	San Francisco	784,658	84.9	%	84.9	%
201 Third Street	San Francisco	346,538	77.3	%	77.3	%
360 Third Street	San Francisco	429,796	88.8	%	99.6	%
250 Brannan Street	San Francisco	100,850	100.0	%	100.0	%
301 Brannan Street	San Francisco	82,834	100.0	%	100.0	%
333 Brannan Street	San Francisco	185,602	100.0	%	100.0	%
345 Brannan Street	San Francisco	110,050	99.7	%	99.7	%
350 Mission Street	San Francisco	455,340	99.7	%	99.7	%
345 Oyster Point Boulevard	South San Francisco	40,410	100.0	%	100.0	%
347 Oyster Point Boulevard	South San Francisco	39,780	100.0	%	100.0	%
349 Oyster Point Boulevard	South San Francisco	65,340	100.0	%	100.0	%
350 Oyster Point Boulevard	South San Francisco	234,892	100.0	%	100.0	%
352 Oyster Point Boulevard	South San Francisco	232,215	100.0	%	100.0	%
354 Oyster Point Boulevard	South San Francisco	193,472	100.0	%	100.0	%
505 Mathilda Avenue	Sunnyvale	212,322	100.0	%	100.0	%
555 Mathilda Avenue	Sunnyvale	212,322	100.0	%	100.0	%
599 Mathilda Avenue	Sunnyvale	76,031	100.0	%	100.0	%
605 Mathilda Avenue	Sunnyvale	162,785	100.0	%	100.0	%
Total San Francisco Bay Area		6,211,875	92.9	%	95.3	%

________________________

(1)This property is part of a complex of properties and is analyzed at the complex level.

16

Q1 2022 Supplemental Financial Report

Stabilized Portfolio Occupancy Overview by Region, continued

	Submarket	Square Feet	Occupied		Leased
Greater Seattle, Washington
601 108th Avenue NE	Bellevue	490,738	98.5	%	98.5	%
10900 NE 4th Street	Bellevue	428,557	99.6	%	99.9	%
2001 West 8th Avenue	Denny Regrade	539,226	99.7	%	99.7	%
701 N. 34th Street	Lake Union	141,860	100.0	%	100.0	%
801 N. 34th Street	Lake Union	173,615	100.0	%	100.0	%
837 N. 34th Street	Lake Union	112,487	100.0	%	100.0	%
320 Westlake Avenue North	Lake Union	184,644	95.5	%	95.5	%
321 Terry Avenue North	Lake Union	135,755	100.0	%	100.0	%
401 Terry Avenue North	Lake Union	174,530	100.0	%	100.0	%
Total Greater Seattle		2,381,412	99.2	%	99.3	%
TOTAL STABILIZED OFFICE PORTFOLIO		15,221,912	91.3	%	93.1	%

			Average Residential Occupancy
COMPLETED RESIDENTIAL PROPERTIES	Submarket	Total No. of Units	Quarter-to-Date
Greater Los Angeles
1550 N. El Centro Avenue	Hollywood	200	94.8%
6390 De Longpre Avenue	Hollywood	193	80.0%
San Diego County
3200 Paseo Village Way	Del Mar	608	97.6%
TOTAL COMPLETED RESIDENTIAL PROPERTIES		1,001	93.7%

17

Q1 2022 Supplemental Financial Report

Information on Leases Commenced (1)

	1st & 2nd Generation						2nd Generation
	# of Leases  (2)		Square Feet (2)		Retention Rates		TI/LC Per Sq.Ft. (3)		TI/LC Per Sq.Ft. /Year (3)		Changes in GAAP Rents		Changes in Cash Rents		Weighted Average Lease Term (Mo.)
	New	Renewal	New	Renewal
Quarter to Date	13	7	141,137	76,104	24.0	%	$	73.23	$	10.59	25.4	%	5.9	%	83

Information on Leases Executed (1)

	1st & 2nd Generation				2nd Generation
	# of Leases (4)		Square Feet (4)		TI/LC Per Sq.Ft. (3)		TI/LC Per Sq.Ft. /Year (3)		Changes in GAAP Rents		Changes in Cash Rents		Weighted Average Lease Term (Mo.)
	New	Renewal	New	Renewal
Quarter to Date (5)	9	7	107,147	76,104	$	92.61	$	11.70	32.9	%	6.7	%	95

________________________

(1)Includes 100% of consolidated property partnerships and leases for which re-leasing timing was impacted by the COVID-19 pandemic and restrictions intended to prevent its spread.

(2)Represents leasing activity for leases that commenced at properties in the stabilized portfolio during the three months ended March 31, 2022, including first and second generation space, net of month-to-month leases.

(3)Includes tenant improvement costs and third-party leasing commissions. Amounts exclude tenant-funded tenant improvements and indirect leasing costs.

(4)Represents leasing activity for leases signed at properties in the stabilized portfolio during the three months ended March 31, 2022, including first and second generation space, net of month-to-month leases. Excludes leasing on new construction.

(5)During the three months ended March 31, 2022, 7 new leases totaling 99,684 square feet were signed but not commenced as of March 31, 2022.

18

Q1 2022 Supplemental Financial Report

Stabilized Portfolio Capital Expenditures

($ in thousands)

	Q1 2022
1st Generation (Nonrecurring) Capital Expenditures: (1)
Capital Improvements	$	2,113
Tenant Improvements & Leasing Commissions (2)	924
Total	$	3,037
	Q1 2022
2nd Generation (Recurring) Capital Expenditures: (1)
Capital Improvements	$	4,945
Tenant Improvements & Leasing Commissions (2)	8,340
Total	$	13,285

________________________

(1)Includes 100% of capital expenditures of consolidated property partnerships.

(2)Includes tenant improvement costs and third-party leasing commissions. Amounts exclude tenant-funded tenant improvements.

19

Q1 2022 Supplemental Financial Report

Stabilized Portfolio Lease Expiration Summary (1)

($ in thousands, except for annualized rent per sq. ft.)

# of Expiring Leases	11		13		15		18		22		18		22		69		59		50		56		25		22		35		29		20
% of Total Leased Sq. Ft.	1.1	%	0.8	%	1.3	%	1.4	%	4.8	%	2.3	%	2.5	%	7.6	%	5.3	%	13.4	%	8.9	%	7.0	%	6.9	%	10.3	%	13.1	%	13.3	%
Annualized Base Rent	$6,291		$4,729		$8,340		$8,586		$33,862		$14,184		$19,455		$47,913		$36,298		$84,032		$48,079		$61,856		$52,180		$83,692		$120,860		$126,634
% of Total Annualized Base Rent (4)	0.8	%	0.6	%	1.1	%	1.1	%	4.5	%	1.9	%	2.6	%	6.3	%	4.8	%	11.1	%	6.4	%	8.2	%	6.8	%	11.1	%	16.0	%	16.7	%
Annualized Rent per Sq. Ft.	$41.64		$43.39		$48.51		$48.91		$51.98		$45.19		$55.94		$46.00		$49.74		$45.87		$39.63		$64.34		$55.44		$59.35		$67.25		$69.51

________________________

(1)For leases that have been renewed early with existing tenants, the expiration date and annualized base rent information presented takes into consideration the renewed lease terms. Excludes leases not commenced as of March 31, 2022, space leased under month-to-month leases, storage leases, vacant space and future lease renewal options not executed as of March 31, 2022.

(2)Adjusting for leasing transactions executed as of March 31, 2022 but not yet commenced, the 2022 expirations would be reduced by 64,058 square feet.

(3)On April 5, 2021, DIRECTV, LLC’s successor-in-interest (“DIRECTV”) filed suit in Los Angeles Superior Court against a subsidiary of the Company, claiming that DIRECTV properly exercised its contraction rights as to certain space leased by DIRECTV at the property located at 2250 East Imperial Highway, El Segundo, California. The Company strongly disagrees with the contentions made by DIRECTV and will vigorously defend the litigation.

(4)Includes 100% of annualized base rent of consolidated property partnerships.

20

Q1 2022 Supplemental Financial Report

Stabilized Portfolio Lease Expiration Schedule by Region

($ in thousands, except for annualized rent per sq. ft.)

Year	Region	# of Expiring Leases	Total Square Feet	% of Total Leased Sq. Ft.		Annualized Base Rent (1)		% of Total Annualized Base Rent		Annualized Rent per Sq. Ft.
2022	Greater Los Angeles	30	321,898	2.5	%	$	14,806	2.0	%	$	46.00
	San Diego	5	19,241	0.1	%	988		0.1	%	51.35
	San Francisco Bay Area	2	30,829	0.2	%	1,785		0.2	%	57.90
	Greater Seattle	2	59,997	0.4	%	1,781		0.2	%	29.68
	Total	39	431,965	3.2	%	$	19,360	2.5	%	$	44.82
2023	Greater Los Angeles	46	443,991	3.2	%	$	23,454	3.1	%	$	52.83
	San Diego	10	181,367	1.4	%	7,923		1.0	%	43.68
	San Francisco Bay Area	16	389,560	2.9	%	24,515		3.2	%	62.93
	Greater Seattle	8	473,753	3.5	%	20,195		2.8	%	42.63
	Total	80	1,488,671	11.0	%	$	76,087	10.1	%	$	51.11
2024	Greater Los Angeles	40	508,555	3.7	%	$	20,839	2.7	%	$	40.98
	San Diego	7	49,125	0.4	%	2,815		0.4	%	57.30
	San Francisco Bay Area	13	245,831	1.8	%	15,912		2.1	%	64.73
	Greater Seattle	9	238,026	1.7	%	8,347		1.1	%	35.07
	Total	69	1,041,537	7.6	%	$	47,913	6.3	%	$	46.00
2025	Greater Los Angeles	23	207,664	1.5	%	$	9,077	1.2	%	$	43.71
	San Diego	17	150,353	1.1	%	6,768		0.9	%	45.01
	San Francisco Bay Area	9	230,843	1.7	%	14,901		2.0	%	64.55
	Greater Seattle	10	140,831	1.0	%	5,552		0.7	%	39.42
	Total	59	729,691	5.3	%	$	36,298	4.8	%	$	49.74
2026	Greater Los Angeles	17	348,888	2.6	%	$	14,183	1.9	%	$	40.65
	San Diego	10	210,096	1.5	%	9,906		1.3	%	47.15
	San Francisco Bay Area	13	878,994	6.4	%	43,812		5.8	%	49.84
	Greater Seattle	10	394,087	2.9	%	16,131		2.1	%	40.93
	Total	50	1,832,065	13.4	%	$	84,032	11.1	%	$	45.87
2027 and Beyond	Greater Los Angeles	55	1,843,615	13.5	%	$	86,999	11.5	%	$	47.19
	San Diego	58	1,310,030	9.6	%	74,306		9.9	%	56.72
	San Francisco Bay Area	43	3,959,139	28.9	%	288,497		38.1	%	72.87
	Greater Seattle	31	1,031,793	7.5	%	43,499		5.7	%	42.16
	Total	187	8,144,577	59.5	%	$	493,301	65.2	%	$	60.57

________________________

(1)Includes 100% of annualized base rent of consolidated property partnerships.

21

Q1 2022 Supplemental Financial Report

Top Fifteen Tenants (1)

($ in thousands)  

Tenant Name	Region	Annualized Base Rental Revenue (2)		Rentable Square Feet	Percentage of Total Annualized Base Rental Revenue		Percentage of Total Rentable Square Feet		Year(s) of Lease Expiration
GM Cruise, LLC	San Francisco Bay Area	$	36,337	374,618	4.7	%	2.4	%	2031
Amazon.com	Greater Seattle	33,800		780,757	4.4	%	5.0	%	2023 / 2029 / 2030
Stripe, Inc.	San Francisco Bay Area	33,110		425,687	4.3	%	2.7	%	2034
LinkedIn Corporation / Microsoft Corporation	San Francisco Bay Area	29,752		663,460	3.9	%	4.3	%	2024 / 2026
Adobe Systems, Inc.	San Francisco Bay Area / Greater Seattle	27,897		523,416	3.6	%	3.4	%	2027 / 2031
salesforce.com, inc.	San Francisco Bay Area	24,076		451,763	3.1	%	2.9	%	2031 / 2032
DoorDash, Inc.	San Francisco Bay Area	23,842		236,759	3.1	%	1.5	%	2032
DIRECTV, LLC (3)	Greater Los Angeles	23,152		684,411	3.0	%	4.4	%	2027
Fortune 50 Publicly-Traded Company	Greater Seattle / San Diego County	23,059		472,427	3.0	%	3.0	%	2032 / 2033
Okta, Inc.	San Francisco Bay Area	22,387		273,371	2.9	%	1.8	%	2028
Netflix, Inc. (4)	Greater Los Angeles	21,943		362,899	2.8	%	2.3	%	2022 / 2032
Box, Inc.	San Francisco Bay Area	20,390		341,441	2.6	%	2.2	%	2028
Cytokinetics, Inc.	San Francisco Bay Area	18,014		234,892	2.3	%	1.5	%	2033
Riot Games, Inc.	Greater Los Angeles	15,681		251,307	2.0	%	1.6	%	2023 / 2024
Synopsys, Inc.	San Francisco Bay Area	15,492		342,891	2.0	%	2.2	%	2030
Total Top Fifteen Tenants		$	368,932	6,420,099	47.7	%	41.2	%

________________________

(1)The information presented is as of March 31, 2022.

(2)Includes 100% of annualized base rental revenues of consolidated property partnerships.

(3)On April 5, 2021, DIRECTV, LLC’s successor-in-interest (“DIRECTV”) filed suit in Los Angeles Superior Court against a subsidiary of the Company, claiming that DIRECTV properly exercised its contraction rights as to certain space leased by DIRECTV at the property located at 2250 East Imperial Highway, El Segundo, California. The Company strongly disagrees with the contentions made by DIRECTV and will vigorously defend the litigation.

(4)The 2022 lease expiration represents 1,480 rentable square feet expiring on June 30, 2022.

22

Q1 2022 Supplemental Financial Report

Consolidated Ventures (Noncontrolling Property Partnerships)

Property (1)	Venture Partner	Submarket	Rentable Square Feet	KRC Ownership %
100 First Street, San Francisco, CA	Norges Bank Real Estate Management	San Francisco	480,457	56%
303 Second Street, San Francisco, CA	Norges Bank Real Estate Management	San Francisco	784,658	56%
900 Jefferson Avenue and 900 Middlefield Road, Redwood City, CA (2)	Local developer	Redwood City	347,269	93%

____________________

(1)For breakout of Net Operating Income by partnership, refer to page 37, Reconciliation of Net Income Available to Common Stockholders to Same Store Net Operating Income.

(2)Reflects the KRC ownership percentage at time of agreement. Actual percentage may vary depending on cash flows or promote structure.

23

03

Development

–In-Process Development & Redevelopment

–Future Development Pipeline

Q1 2022 Supplemental Financial Report

In-Process Development & Redevelopment

($ in millions)

	Location	Construction Start Date	Estimated Stabilization Date (2)	Estimated Rentable Square Feet (3)	Total Estimated Investment		Total Cash Costs Incurred as of 3/31/2022 (4)		% Leased	Total Project % Occupied
TENANT IMPROVEMENT (1)
Office
San Diego County
2100 Kettner	Little Italy	3Q 2019	3Q 2022	235,000	$	140.0	$	112.1	—%	—%
Greater Seattle
333 Dexter	South Lake Union	2Q 2017	3Q 2022	635,000	410.0		378.4		100%	49%
Austin
Indeed Tower	Austin CBD	2Q 2021	1Q 2024	734,000	690.0		578.1		58%	15%
TOTAL:				1,604,000	$	1,240.0	$	1,068.6	66%	26%

UNDER CONSTRUCTION	Location	Construction Start Date	Estimated Stabilization Date (2)	Estimated Rentable Square Feet (3)	Total Estimated Investment (5)		Total Cash Costs Incurred as of 3/31/2022 (4)(5)		% Leased
Office / Life Science
San Francisco Bay Area
Kilroy Oyster Point - Phase 2	South San Francisco	2Q 2021	4Q 2024	875,000	$	940.0	$	250.3	—%
San Diego County
9514 Towne Centre Drive	University Towne Center	3Q 2021	4Q 2023	71,000	60.0		15.0		100%
12340 El Camino Real (6)	Del Mar	4Q 2021	3Q 2022	96,000	40.0		22.9		100%
12400 High Bluff Drive (6)	Del Mar	1Q 2022	3Q 2022	182,000	50.0		28.3		100%
4690 Executive Drive (6)	University Towne Center	1Q 2022	3Q 2023	52,000	25.0		5.8		100%
TOTAL:				1,276,000	$	1,115.0	$	322.3	31%

________________________

(1)Represents projects that have reached cold shell condition and are ready for tenant improvements, which may require additional major base building construction before being placed in service.

(2)For office and retail, represents the earlier of anticipated 95% occupancy date or one year from substantial completion of base building components. For multi-phase projects, interest and carry cost capitalization may cease and recommence driven by various factors, including tenant improvement construction and other tenant related timing or project scope. For projects being redeveloped, redevelopment will occur in phases based on existing lease expiration dates and timing of the tenant improvement build-out.

(3)For projects being redeveloped, represents the total square footage leased.

(4)Represents costs incurred as of March 31, 2022, excluding GAAP accrued liabilities and leasing overhead.

(5)For redevelopment projects, includes the existing depreciated basis for the buildings to be redeveloped, except for 12400 High Bluff Drive, which includes 66% of the depreciated basis, representing the 66% of the building that will be redeveloped.

(6)Redevelopment project.

25

Q1 2022 Supplemental Financial Report

Future Development Pipeline

($ in millions)

FUTURE DEVELOPMENT PIPELINE	Location	Approx. Developable Square Feet (1)	Total Cash Costs Incurred as of 3/31/2022 (2)
San Diego County
Santa Fe Summit – Phases 2 and 3	56 Corridor	600,000 - 650,000	$	95.5
2045 Pacific Highway	Little Italy	275,000	49.2
Kilroy East Village	East Village	TBD	62.8
San Francisco Bay Area
Kilroy Oyster Point - Phases 3 and 4	South San Francisco	875,000 - 1,000,000	192.0
Flower Mart	SOMA	2,300,000	433.9
Greater Seattle
SIX0 - Office & Residential	Denny Regrade	925,000	150.5
Austin
10615 Burnet Road (3)	Stadium District / Domain	493,000	40.3
TOTAL:			$	1,024.2

________________________

(1)The developable square feet and scope of projects could change materially from estimated data provided due to one or more of the following: any significant changes in the economy, market conditions, our markets, tenant requirements and demands, construction costs, new supply, regulatory and entitlement processes or project design.

(2)Represents costs incurred as of March 31, 2022, excluding accrued liabilities recorded in accordance with GAAP.

(3)This fully-entitled 2.9-acre land site was acquired in March 2022 for $40.0 million.

26

04

Debt and

Capitalization Data

–Capital Structure

–Debt Analysis

Q1 2022 Supplemental Financial Report

Capital Structure

As of March 31, 2022 ($ in thousands)

Debt Balance (3)		Stated Rate		Maturity Date
Unsecured Debt (4)
$	425,000	3.45	%	12/15/2024
$	400,000	4.38	%	10/1/2025
$	50,000	4.30	%	7/18/2026
$	200,000	4.35	%	10/18/2026
$	175,000	3.35	%	2/17/2027
$	400,000	4.75	%	12/15/2028
$	75,000	3.45	%	2/17/2029
$	400,000	4.25	%	8/15/2029
$	500,000	3.05	%	2/15/2030
$	350,000	4.27	%	1/31/2031
$	425,000	2.50	%	11/15/2032
$	450,000	2.65	%	11/15/2033
Secured Debt
$	162,581	3.57	%	12/1/2026
$	85,074	4.48	%	7/1/2027

________________________

(1)Value based on closing share price of $76.42as of March 31, 2022.

(2)Includes common units of the Operating Partnership not owned by the Company; does not include noncontrolling interests in consolidated property partnerships.

(3)Represents the gross aggregate principal amount due at maturity before the effect of unamortized deferred financing costs and premiums and discounts.

(4)As of March 31, 2022, there was no outstanding balance on the unsecured revolving credit facility.

28

Q1 2022 Supplemental Financial Report

Debt Analysis

As of March 31, 2022

TOTAL DEBT COMPOSITION (1)
	Weighted Average
	Interest Rate	Years to Maturity
Secured vs. Unsecured Debt
Unsecured Debt	3.6%	7.1
Secured Debt	3.9%	4.9
Floating vs. Fixed-Rate Debt
Floating-Rate Debt	—%	—
Fixed-Rate Debt	3.7%	7.0
Stated Interest Rate	3.7%	7.0
GAAP Effective Rate	3.7%
GAAP Effective Rate Including Debt Issuance Costs	3.9%

KEY DEBT COVENANTS
	Covenant	Actual Performance as of March 31, 2022
Unsecured Credit Facility and Private Placement Notes (as defined in the Credit Agreements):
Total debt to total asset value	less than 60%	29%
Fixed charge coverage ratio	greater than 1.5x	3.5x
Unsecured debt ratio	greater than 1.67x	3.25x
Unencumbered asset pool debt service coverage	greater than 1.75x	4.05x
Unsecured Senior Notes due 2024, 2025, 2028, 2029, 2030, 2032 and 2033 (as defined in the Indentures):
Total debt to total asset value	less than 60%	34%
Interest coverage	greater than 1.5x	8.4x
Secured debt to total asset value	less than 40%	2%
Unencumbered asset pool value to unsecured debt	greater than 150%	297%

________________________

(1)As of March 31, 2022, there was nooutstanding balance on the unsecured revolving credit facility.

29

05

Non-GAAP Supplemental

Measures

Q1 2022 Supplemental Financial Report

Management Statements on Non-GAAP Supplemental Measures

Included in this section are management’s statements regarding certain non-GAAP financial measures provided in this supplemental financial report and, with respect to Funds From Operations available to common stockholders and common unitholders (“FFO”), in the Company’s earnings release on April 27, 2022 and the reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations.

Net Operating Income:

Management believes that Net Operating Income (“NOI”) is a useful supplemental measure of the Company’s operating performance. The Company defines NOI as follows: consolidated operating revenues (rental income and other property income) less consolidated property and related expenses (property expenses, real estate taxes and ground leases). Other real estate investment trusts (“REITs”) may use different methodologies for calculating NOI, and accordingly, the Company’s NOI may not be comparable to other REITs.

Because NOI excludes leasing costs, general and administrative expenses, interest expense, depreciation and amortization, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the consolidated revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. The Company uses NOI to evaluate its operating performance on a portfolio basis since NOI allows the Company to evaluate the impact that factors such as occupancy levels, lease structure, rental rates, and tenant base have on the Company’s results, margins and returns. In addition, management believes that NOI provides useful information to the investment community about the Company’s financial and operating performance when compared to other REITs since NOI is generally recognized as a standard measure of performance in the real estate industry.

However, NOI should not be viewed as an alternative measure of the Company’s financial performance since it does not reflect general and administrative expenses, leasing costs, interest expense, depreciation and amortization costs, other nonproperty income and losses and the level of capital expenditures necessary to maintain the operating performance of the Company’s properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact the Company’s results from operations.

Same Store Net Operating Income:

Management believes that Same Store NOI is a useful supplemental measure of the Company’s operating performance. Same Store NOI represents the consolidated NOI for all of the properties that were owned and included in the Company's stabilized portfolio for two comparable reporting periods. Because Same Store NOI excludes the change in NOI from developed, redeveloped, acquired and disposed of and held for sale properties, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same Store NOI, and accordingly, the Company’s Same Store NOI may not be comparable to other REITs.

However, Same Store NOI should not be viewed as an alternative measure of the Company’s financial performance since it does not reflect the operations of the Company’s entire portfolio, nor does it reflect the impact of general and administrative expenses, leasing costs, interest expense, depreciation and amortization costs, other nonproperty income and losses and the level of capital expenditures necessary to maintain the operating performance of the Company’s properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact the Company’s results from operations.

31

Q1 2022 Supplemental Financial Report

Management Statements on Non-GAAP Supplemental Measures, continued

Same Store Cash Net Operating Income:

Management believes that Same Store Cash NOI is a useful supplemental measure of the Company’s operating performance. Same Store Cash NOI represents the consolidated NOI for all of the properties that were owned and included in the Company’s stabilized portfolio for two comparable reporting periods, adjusted for the net effect of straight-line rents, amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above and below market lease intangibles, and the provision for bad debts. Because Same Store Cash NOI excludes the change in NOI from developed, redeveloped, acquired and disposed of and held for sale properties, it highlights operating trends on a cash basis such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same Store Cash NOI, and accordingly, our Same Store Cash NOI may not be comparable to other REITs.

However, Same Store Cash NOI should not be viewed as an alternative measure of the Company’s financial performance since it does not reflect the operations of the Company's entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact the Company's results from operations.

EBITDA, as adjusted:

Management believes that consolidated earnings before interest expense, depreciation and amortization, gain/loss on early extinguishment of debt, gains and losses on depreciable real estate, net income attributable to noncontrolling interests, preferred dividends and distributions, original issuance costs of redeemed preferred stock and preferred units, and impairment losses (“EBITDA, as adjusted”) is a useful supplemental measure of the Company’s operating performance. When considered with other GAAP measures and FFO, management believes EBITDA, as adjusted, gives the investment community a more complete understanding of the Company’s consolidated operating results, including the impact of general and administrative expenses and acquisition-related expenses, before the impact of investing and financing transactions and facilitates comparisons with competitors. Management also believes it is appropriate to present EBITDA, as adjusted, as it is used in several of the Company’s financial covenants for both its secured and unsecured debt. However, EBITDA, as adjusted, should not be viewed as an alternative measure of the Company’s operating performance since it excludes financing costs as well as depreciation and amortization costs which are significant economic costs that could materially impact the Company’s results of operations and liquidity. Other REITs may use different methodologies for calculating EBITDA, as adjusted, and, accordingly, the Company’s EBITDA, as adjusted, may not be comparable to other REITs. The Company’s calculation of EBITDA, as adjusted, is the same as EBITDAre, as defined by NAREIT, as the Company does not have any unconsolidated joint ventures.

32

Q1 2022 Supplemental Financial Report

Management Statements on Non-GAAP Supplemental Measures, continued

Funds From Operations:

The Company calculates Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of NAREIT. The White Paper defines FFO as net income or loss calculated in accordance with GAAP, excluding extraordinary items, as defined by GAAP, gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets) and after adjustment for unconsolidated partnerships and joint ventures. Our calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. We also add back net income attributable to noncontrolling common units of the Operating Partnership because we report FFO attributable to common stockholders and common unitholders.

Management believes that FFO is a useful supplemental measure of the Company’s operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of the Company’s activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, the Company’s FFO may not be comparable to all other REITs.

Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, management believes that FFO along with the required GAAP presentations provides a more complete measurement of the Company’s performance relative to its competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide.

However, FFO should not be viewed as an alternative measure of the Company’s operating performance since it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties, which are significant economic costs and could materially impact the Company’s results from operations.

Funds Available for Distribution:

Management believes that Funds Available for Distribution available to common stockholders and common unitholders (“FAD”) is a useful supplemental measure of the Company’s liquidity. The Company computes FAD by adding to FFO the non-cash amortization of deferred financing costs, debt discounts and premiums and share-based compensation awards, amortization of above (below) market rents for acquisition properties and non-cash executive compensation expense then subtracting recurring tenant improvements, leasing commissions and capital expenditures and eliminating the net effect of straight-line rents, amortization of deferred revenue related to tenant improvements, adjusting for other lease related items and amounts of gain or loss on marketable securities related to the Company’s executive deferred compensation plan that are capitalized as development costs, and after adjustment for amounts attributable to noncontrolling interests in consolidated property partnerships. FAD provides an additional perspective on the Company’s ability to fund cash needs and make distributions to stockholders by adjusting FFO for the impact of certain cash and non-cash items, as well as adjusting FFO for recurring capital expenditures and leasing costs. Management also believes that FAD provides useful information to the investment community about the Company’s financial position as compared to other REITs since FAD is a liquidity measure used by other REITs. However, other REITs may use different methodologies for calculating FAD and, accordingly, the Company’s FAD may not be comparable to other REITs.

33

06

Definitions and Reconciliations

Q1 2022 Supplemental Financial Report

Definitions Included in Supplemental

Annualized Base Rent:

Includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue. Additionally, the underlying leases contain various expense structures including full service gross, modified gross and triple net. Amounts represent percentage of total portfolio annualized contractual base rental revenue.

Change in GAAP/Cash Rents (Leases Commenced):

Calculated as the change between GAAP/cash rents for new/renewed leases and the expiring GAAP/cash rents for the same space. Includes leases for which re-leasing timing was impacted by the COVID-19 pandemic and restrictions intended to prevent its spread. Excludes leases for which the space was vacant when the property was acquired by the Company.

Change in GAAP/Cash Rents (Leases Executed):

Calculated as the change between GAAP/cash rents for signed leases and the expiring GAAP/cash rents for the same space. Includes leases for which re-leasing timing was impacted by the COVID-19 pandemic and restrictions intended to prevent its spread. Excludes leases for which the space was vacant when the property was acquired by the Company.

Estimated Stabilization Date (Development):

Management’s estimation of the earlier of stabilized occupancy (95%) or one year from the date of the cessation of major base building construction activities for office and retail properties and upon substantial completion for residential properties.

FAD Payout Ratio:

Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted stock unitholders) divided by FAD.

First Generation Capital Expenditures:

Capital expenditures for newly acquired space, newly developed, redeveloped, or repositioned space. These costs are not subtracted in our calculation of FAD.

Fixed Charge Coverage Ratio:

Calculated as EBITDA, as adjusted, divided by gross interest expense (excluding amortization of deferred debt costs and debt discounts/premiums) and current year accrued preferred dividends.

FFO Payout Ratio:

Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted stock unitholders) divided by FFO attributable to common stockholders and unitholders.

35

Q1 2022 Supplemental Financial Report

Definitions Included in Supplemental, continued

GAAP Effective Rate:

The rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of any discounts/premiums, excluding debt issuance costs.

Interest Coverage Ratio:

Calculated as EBITDA, as adjusted, divided by gross interest expense (excluding amortization of deferred debt costs and debt discounts/premiums).

Net Effect of Straight-Line Rents:

Represents the straight-line rent income recognized during the period offset by cash received during the period that was applied to deferred rents receivable balances for terminated leases and the provision for bad debts recorded for deferred rent receivable balances.

Net Operating Income Margins:

Calculated as Net Operating Income divided by total revenues.

Retention Rates (Leases Commenced):

Calculated as the percentage of space either renewed or expanded into by existing tenants or subtenants at lease expiration.

Same Store Portfolio:

Our Same Store portfolio includes all of our properties owned and included in our stabilized portfolio for two comparable reporting periods, i.e., owned and included in our stabilized portfolio as of January 1, 2021 and still owned and included in the stabilized portfolio as of March 31, 2022. It does not include undeveloped land, development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, completed residential developments not yet stabilized and properties held-for-sale. We define redevelopment properties as those projects for which we expect to spend significant development and construction costs on existing or acquired buildings pursuant to a formal plan, the intended result of which is a higher economic return on the property.

Stated Interest Rate:

The rate at which interest expense is recorded per the respective loan documents, excluding the impact of the amortization of any debt discounts/premiums.

Tenant Improvement Phase:

Represents projects that have reached cold shell condition and are ready for tenant improvements, which may require additional major base building construction before being placed in service.

36

Q1 2022 Supplemental Financial Report

Reconciliation of Net Income Available to Common Stockholders to Same Store Net Operating Income

(unaudited, $ in thousands)

	Three Months Ended March 31,
	2022		2021
Net Income Available to Common Stockholders	$	53,128	$	497,631
Net income attributable to noncontrolling common units of the Operating Partnership	516		4,886
Net income attributable to noncontrolling interests in consolidated property partnerships	5,739		4,894
Net Income	59,383		507,411
Adjustments:
General and administrative expenses	22,781		21,985
Leasing costs	1,013		692
Depreciation and amortization	88,660		75,932
Interest income and other income, net	(81)		(1,373)
Interest expense	20,625		22,334
Gain on sale of depreciable operating property	—		(457,288)
Net Operating Income, as defined (1)	192,381		169,693
Wholly-Owned Properties	168,431		146,326
Consolidated property partnerships: (2)
100 First Street (3)	5,922		6,397
303 Second Street (3)	12,000		10,937
Crossing/900 (4)	6,028		6,033
Net Operating Income, as defined (1)	192,381		169,693
Non-Same Store Net Operating Income (5)	(35,190)		(25,560)
Same Store Net Operating Income	157,191		144,133
GAAP to Cash Adjustments:
GAAP Operating Revenues Adjustments, net (6)	(8,599)		(12,371)
GAAP Operating Expenses Adjustments, net (7)	105		91
Same Store Cash Net Operating Income	$	148,697	$	131,853

________________________

(1)Please refer to pages 31-32 for Management Statements on Net Operating Income, Same Store Net Operating Income and Same Store Cash Net Operating Income.

(2)Reflects Net Operating Income for all periods presented.

(3)For all periods presented, an unrelated third party entity owned approximately 44% common equity interests in two properties located at 100 First Street and 303 Second Street in San Francisco, CA.

(4)For all periods presented, an unrelated third party entity owned an approximate 7% common equity interest in two properties located at 900 Jefferson Avenue and 900 Middlefield Road in Redwood City, CA.

(5)Includes the results of one office property disposed of during the first quarter 2021, two office operating properties disposed of during the fourth quarter 2021, our 193-unit residential project added to the stabilized portfolio in the second quarter of 2021, one office development project added to the stabilized portfolio in the first quarter of 2021, one office development building added to the stabilized portfolio in the second quarter of 2021, two office development buildings added to the stabilized portfolio in the third quarter of 2021, two office development buildings added to the stabilized portfolio in the fourth quarter of 2021, one operating property acquired during the third quarter of 2021, and our in-process and future development projects.

(6)Includes the net effect of straight-line rents, amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above and below market lease intangibles and revenue reversals (recoveries) related to tenant creditworthiness.

(7)Includes the amortization of above and below market lease intangibles for ground leases.

37

Q1 2022 Supplemental Financial Report

Reconciliation of Net Income Available to Common Stockholders to EBITDA, as Adjusted

(unaudited, $ in thousands)

	Three Months Ended March 31,
	2022		2021
Net Income Available to Common Stockholders	$	53,128	$	497,631
Interest expense	20,625		22,334
Depreciation and amortization	88,660		75,932
Net income attributable to noncontrolling common units of the Operating Partnership	516		4,886
Net income attributable to noncontrolling interests in consolidated property partnerships	5,739		4,894
Gain on sale of depreciable operating property	—		(457,288)
EBITDA, as adjusted (1)	$	168,668	$	148,389

________________________

(1)Please refer to page 32 for a Management Statement on EBITDA, as adjusted. The Company’s calculation of EBITDA, as adjusted, is the same as EBITDAre, as defined by NAREIT, as the Company does not have any unconsolidated joint ventures.

38

EX-99.2

Exhibit 99.2

Contact:	FOR RELEASE:
Tyler H. Rose	April 27, 2022
President
(310) 481-8484 Or
Eliott Trencher
Executive Vice President,
Chief Investment Officer,
Interim Chief Financial Officer and Treasurer
(310) 481-8587

KILROY REALTY CORPORATION REPORTS

FIRSTQUARTER FINANCIAL RESULTS

---------------

LOS ANGELES, April 27, 2022 - Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its firstquarter ended March 31, 2022.

First Quarter Highlights

Financial Results

•Net income available to common stockholders per share of$0.45

•Funds from operations available to common stockholders and unitholders (“FFO”) per share of $1.16

•Revenues of $265.5 million

Stabilized Portfolio

•Stabilized portfolio was 91.3% occupied and 93.1% leased at March 31, 2022

•Signed approximately 183,000 square feet of new and renewing leases

◦Includes the amended lease agreement executed with Nuro in Mountain View, CA for 114,000 square feet

◦GAAP and cash rents increased approximately 32.9% and 6.7%, respectively, from prior levels

Development

•In March, commenced construction on the life science redevelopments of 12400 High Bluff Drive in the Del Mar submarket and 4690 Executive Drive in the University Towne Center submarket of San Diego in connection with executed leases

•In March, completed the acquisition of a 2.9-acre land site in the Stadium District of Austin, adjacent to the Domain, for a cash purchase price of $40.0 million. The site is also adjacent to Austin’s MLS Q2 Stadium and is fully-entitled for approximately 493,000 square feet of new Class A office development

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Balance Sheet / Liquidity Highlights

•As of the date of this release, the company had approximately$1.3 billionof total liquidity comprised of approximately$175.0 million of cash and cash equivalents andfull availability under the $1.1 billion unsecured revolving credit facility

•No significant debt maturities until December 2024

Results for the Quarter Ended March 31, 2022

For the first quarter ended March 31, 2022, the company reported net income available to common stockholders of $53.1 million, or $0.45 per share, compared to $497.6 million, or $4.26 per share, including a $3.92 per share gain on sale of an operating property, in the first quarter of 2021. FFO in the first quarter of 2022 was $137.8 million, or $1.16 per share, compared to $116.2 million, or $0.98 per share, in the first quarter of 2021. Current period net income available to common stockholders and FFO per share included a net $0.02 per share of non-recurring income. Prior period net income available to common stockholders and FFO per share included a $0.01 per share charge primarily due to residential and office tenant creditworthiness related to the COVID-19 pandemic.

All per share amounts in this report are presented on a diluted basis.

Net Income Available to Common Stockholders / FFO Guidance and Outlook

The company is providing an updated guidance range of NAREIT-defined FFO per diluted share for the full year 2022 of $4.44 to $4.58 per share, with a midpoint of $4.51 per share.

	Full Year 2022 Range
	Low End		High End
Net income available to common stockholders per share - diluted	$	1.78	$	1.92
Weighted average common shares outstanding - diluted (1)	117,850		117,850
Net income available to common stockholders	$	210,000	$	226,000
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership	2,250		2,650
Net income attributable to noncontrolling interests in consolidated property partnerships	24,500		25,500
Depreciation and amortization of real estate assets	327,000		327,000
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships	(35,250)		(36,250)
Funds From Operations (2)	$	528,500	$	544,900
Weighted average common shares/units outstanding – diluted (3)	119,050		119,050
Funds From Operations per common share/unit – diluted (3)	$	4.44	$	4.58

Key 2022 assumptions:

•Dispositions of $200.0 million to $500.0 million

•Same Store Cash NOI growth of 5.0% to 6.0% (2)

•Year-end occupancy of approximately 91.0% to 92.0%

•Total remaining development spending of approximately $500.0 million to $575.0 million

 ________________________

(1)Calculated based on estimated weighted average shares outstanding including non-participating share-based awards.

(2)See management statement for Funds From Operations at end of release.

(3)Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders and common unitholders.

(4)See management statement for Same Store Cash Net Operating Income on page32of our Supplemental Financial Report furnished on Form 8-K with this press release.

2

The company’s guidance estimates for the full year 2022, and the reconciliation of net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this press release, reflect management’s views on current and future market conditions, including assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this press release. Although these guidance estimates reflect the impact on the company’s operating results of an assumed range of future disposition activity, these guidance estimates do not include any estimates of possible future gains or losses from possible future dispositions because the magnitude of gains or losses on sales of depreciable operating properties, if any, will depend on the sales price and depreciated cost basis of the disposed assets at the time of disposition, information that is not known at the time the company provides guidance, and the timing of any gain recognition will depend on the closing of the dispositions, information that is also not known at the time the company provides guidance and may occur after the relevant guidance period. We caution you not to place undue reliance on our assumed range of future disposition activity because any potential future disposition transactions will ultimately depend on the market conditions and other factors, including but not limited to the company’s capital needs, the particular assets being sold and the company’s ability to defer some or all of the taxable gain on the sales. These guidance estimates also do not include the impact on operating results from potential future acquisitions, possible capital markets activity, possible future impairment charges or any events outside of the company’s control. There can be no assurance that the company’s actual results will not differ materially from these estimates.

Conference Call and Audio Webcast

The company’s management will discuss first quarter results and the current business environment during the company’s April 28, 2022 earnings conference call. The call will begin at 10:00 a.m. Pacific Time and last approximately one hour. Those interested in listening via the Internet can access the conference call at https://events.q4inc.com/attendee/357331264. It may be necessary to download audio software to hear the conference call. Those interested in listening via telephone can access the conference call at (844) 200-6205 and enter access code 307670 five to 10 minutes prior to the start time to allow time for registration. International callers should dial (929) 526-1599 and enter the same passcode. In order to bypass speaking to the operator on the day of the call, please pre-register anytime at https://www.incommglobalevents.com/registration/q4inc/9125/q1-2022-kilroy-realty-corporation-earnings-conference-call/. A replay of the conference call will be available via telephone on April 28, 2022 through May 5, 2022 by dialing (866) 813-9403 and entering passcode 005135. International callers should dial (929) 458-6194 and enter the same passcode. The replay will also be available on our website at http://investors.kilroyrealty.com/shareholders/investor-events/default.aspx.

About Kilroy Realty Corporation

Kilroy Realty Corporation (NYSE: KRC, the “company”, “Kilroy”) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, the Pacific Northwest and Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, entertainment, life science and business services companies.

The company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects.

3

As of March 31, 2022, Kilroy’s stabilized portfolio totaled approximately 15.2 million square feet of primarily office and life science space that was 91.3% occupied and 93.1% leased. The company also had more than1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 93.7%. In addition, the company had three in-process life science redevelopment projects with total estimated redevelopment costs of $115.0 million, totaling 330,000 square feet, and fivein-process development projects with an estimated total investment of $2.2 billion, totaling approximately 2.6 millionsquare feet of office and life science space. The in-process development and redevelopment office and life science space was 51% leased.

A Leader in Sustainability and Commitment to Corporate Social Responsibility

The company is listed on the Dow Jones Sustainability World Index and has been recognized by industry organizations around the world. The company’s office portfolio was 72% LEED certified and 38% Fitwel certified, and 78% of eligible properties were ENERGY STAR certified as of March 31, 2022.

The company has been recognized by GRESB as the listed sustainability leader in the Americas for eight of the last nine years. Other honors have included the National Association of Real Estate Investment Trust’s (NAREIT) Leader in the Light award for eight consecutive years and ENERGY STAR Partner of the Year for eight years as well as ENERGY STAR’s highest honor of Sustained Excellence, for the past six years.

A big part of the company’s foundation is its commitment to enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. For the third year in a row, the company has been named to Bloomberg’s Gender Equality Index—recognizing companies committed to supporting gender equality through policy development, representation, and transparency.

More information is available athttp://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 or implied 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, Texas 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;

4

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 enactment or implementations of, tax laws or other 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; our ability to maintain our status as a REIT; and uncertainties regarding the impact of the COVID-19 pandemic, and restrictions intended to prevent its spread, on our business and the economy generally. 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, 2021 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 dates 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.

5

KILROY REALTY CORPORATION

SUMMARY OF QUARTERLY RESULTS

(unaudited; in thousands, except per share data)

	Three Months Ended March 31,
	2022			2021
Revenues	$	265,501		$	235,646
Net income available to common stockholders	$	53,128		$	497,631
Weighted average common shares outstanding – basic	116,650			116,344
Weighted average common shares outstanding – diluted	117,060			116,801
Net income available to common stockholders per share – basic	$	0.45		$	4.27
Net income available to common stockholders per share – diluted	$	0.45		$	4.26
Funds From Operations (1)(2)	$	137,766		$	116,244
Weighted average common shares/units outstanding – basic (3)	118,628			118,333
Weighted average common shares/units outstanding – diluted (4)	119,038			118,790
Funds From Operations per common share/unit – basic (2)	$	1.16		$	0.98
Funds From Operations per common share/unit – diluted (2)	$	1.16		$	0.98
Common shares outstanding at end of period	116,716			116,450
Common partnership units outstanding at end of period	1,151			1,151
Total common shares and units outstanding at end of period	117,867			117,601
	March 31, 2022			March 31, 2021
Stabilized office portfolio occupancy rates: (5)
Greater Los Angeles	85.7		%	87.5		%
San Diego County	89.4		%	87.4		%
San Francisco Bay Area	92.9		%	94.3		%
Greater Seattle	99.2		%	97.8		%
Weighted average total	91.3		%	91.5		%
Total square feet of stabilized office properties owned at end of period: (5)
Greater Los Angeles	4,457			4,404
San Diego County	2,171			2,316
San Francisco Bay Area	6,212			5,528
Greater Seattle	2,381			1,802
Total	15,221			14,050

________________________

(1)Reconciliation of Net income available to common stockholders to Funds From Operations available to common stockholders and unitholders and management statement on Funds From Operations are included after the Consolidated Statements of Operations.

(2)Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.

(3)Calculated based on weighted average shares outstanding including participating share-based awards (i.e. nonvested stock and certain time based restricted stock units) and assuming the exchange of all common limited partnership units outstanding.

(4)Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of stock options and contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.

(5)Occupancy percentages and total square feet reported are based on the company’s stabilized office portfolio for the periods presented. Occupancy percentages and total square feet shown for March 31, 2021 include the office properties that were sold subsequent to March 31, 2021.

6

KILROY REALTY CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited; in thousands)

	March 31, 2022		December 31, 2021
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	1,715,192	$	1,731,982
Buildings and improvements	7,509,311		7,543,585
Undeveloped land and construction in progress	2,158,279		2,017,126
Total real estate assets held for investment	11,382,782		11,292,693
Accumulated depreciation and amortization	(2,034,193)		(2,003,656)
Total real estate assets held for investment, net	9,348,589		9,289,037
Cash and cash equivalents	331,685		414,077
Restricted cash	13,007		13,006
Marketable securities	25,829		27,475
Current receivables, net	12,107		14,386
Deferred rent receivables, net	420,895		405,665
Deferred leasing costs and acquisition-related intangible assets, net	228,426		234,458
Right of use ground lease assets	126,946		127,302
Prepaid expenses and other assets, net	57,338		57,991
TOTAL ASSETS	$	10,564,822	$	10,583,397
LIABILITIES AND EQUITY
LIABILITIES:
Secured debt, net	$	247,030	$	248,367
Unsecured debt, net	3,821,433		3,820,383
Accounts payable, accrued expenses and other liabilities	391,920		391,264
Ground lease liabilities	125,414		125,550
Accrued dividends and distributions	61,951		61,850
Deferred revenue and acquisition-related intangible liabilities, net	171,121		171,151
Rents received in advance and tenant security deposits	80,192		74,962
Total liabilities	4,899,061		4,893,527
EQUITY:
Stockholders’ Equity
Common stock	1,167		1,165
Additional paid-in capital	5,149,968		5,155,232
Retained earnings	274,193		283,663
Total stockholders’ equity	5,425,328		5,440,060
Noncontrolling Interests
Common units of the Operating Partnership	53,472		53,746
Noncontrolling interests in consolidated property partnerships	186,961		196,064
Total noncontrolling interests	240,433		249,810
Total equity	5,665,761		5,689,870
TOTAL LIABILITIES AND EQUITY	$	10,564,822	$	10,583,397

7

KILROY REALTY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share data)

	Three Months Ended March 31,
	2022		2021
REVENUES
Rental income	$	263,208	$	234,656
Other property income	2,293		990
Total revenues	265,501		235,646
EXPENSES
Property expenses	45,424		38,859
Real estate taxes	25,870		25,266
Ground leases	1,826		1,828
General and administrative expenses	22,781		21,985
Leasing costs	1,013		692
Depreciation and amortization	88,660		75,932
Total expenses	185,574		164,562
OTHER INCOME (EXPENSES)
Interest and other income, net	81		1,373
Interest expense	(20,625)		(22,334)
Gains on sales of depreciable operating properties	—		457,288
Total other (expenses) income	(20,544)		436,327
NET INCOME	59,383		507,411
Net income attributable to noncontrolling common units of the Operating Partnership	(516)		(4,886)
Net income attributable to noncontrolling interests in consolidated property partnerships	(5,739)		(4,894)
Total income attributable to noncontrolling interests	(6,255)		(9,780)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	53,128	$	497,631
Weighted average common shares outstanding – basic	116,650		116,344
Weighted average common shares outstanding – diluted	117,060		116,801
Net income available to common stockholders per share – basic	$	0.45	$	4.27
Net income available to common stockholders per share – diluted	$	0.45	$	4.26

8

KILROY REALTY CORPORATION

FUNDS FROM OPERATIONS

(unaudited; in thousands, except per share data)

	Three Months Ended March 31,
	2022		2021
Net income available to common stockholders	$	53,128	$	497,631
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership	516		4,886
Net income attributable to noncontrolling interests in consolidated property partnerships	5,739		4,894
Depreciation and amortization of real estate assets	87,001		74,431
Gains on sales of depreciable real estate	—		(457,288)
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships	(8,618)		(8,310)
Funds From Operations(1)(2)(3)	$	137,766	$	116,244
Weighted average common shares/units outstanding – basic (4)	118,628		118,333
Weighted average common shares/units outstanding – diluted (5)	119,038		118,790
Funds From Operations per common share/unit – basic (2)	$	1.16	$	0.98
Funds From Operations per common share/unit – diluted (2)	$	1.16	$	0.98

 ________________________

(1)We calculate Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of NAREIT. The White Paper defines FFO as net income or loss calculated in accordance with GAAP, excluding extraordinary items, as defined by GAAP, gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets) and after adjustment for unconsolidated partnerships and joint ventures. Our calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. We also add back net income attributable to noncontrolling common units of the Operating Partnership because we report FFO attributable to common stockholders and common unitholders.

We believe that FFO is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs.

Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide.

However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations.

(2)Reported amounts are attributable to common stockholders and common unitholders.

(3)FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of $4.3 million and $4.2 million for the three months ended March 31, 2022 and 2021, respectively.

(4)Calculated based on weighted average shares outstanding including participating share-based awards (i.e. certain time based restricted stock units) and assuming the exchange of all common limited partnership units outstanding.

(5)Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of stock options and contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.

9

XML

Cover Page Cover Page	Apr. 27, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Apr. 27, 2022
Entity Registrant Name	KILROY REALTY CORP
Entity Incorporation, State or Country Code	MD
Entity File Number	001-12675
Entity Tax Identification Number	95-4598246
Entity Central Index Key	0001025996
Amendment Flag	false
Entity Address, Address Line One	12200 W. Olympic Boulevard
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90064
City Area Code	310
Local Phone Number	481-8400
Title of 12(b) Security	Common Stock, $.01 par value
Security Exchange Name	NYSE
Trading Symbol	KRC
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false