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- In December, entered into an agreement, subject to a non-refundable deposit, to sell Kilroy Sabre Springs, a three-building campus Development / Redevelopment (5)Total development spending includes recently stabilized, in-process, and future development projects. 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, including actual and potential tariffs and periods of heightened inflation, and their effect on us and 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, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the media industry, may have on our tenants’ businesses; our ability to re-lease property at or above current market rates; reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer's office premises; 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; changes in interest rates and 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; risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; and our ability to maintain our status as a REIT. 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, 2024, 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. (6)Calculated based on estimated weighted average shares outstanding, including non-participating share-based awards and the dilutive impact of contingently issuable shares. Financial Highlights(unaudited, $ in thousands, except per share amounts) Net Operating Income (1)(unaudited, $ in thousands) Stabilized Portfolio Occupancy Overview by Region, continued (1)(unaudited) Consolidated Balance Sheets(unaudited, $ in thousands) KILROY REALTY CORPORATION REPORTS in the I-15 Corridor submarket of San Diego, and classified the campus as Held for Sale. The campus totals approximately 428,000 •During the first quarter of 2025, received a temporary certificate of occupancy and progressed KOP 2 from the under construction phase to Net Income Available to Common Stockholders / FFO Guidance Table of Contents Funds From Operations & Funds Available for Distribution (1)(unaudited, $ and shares in thousands, except per share amounts) Stabilized Portfolio Occupancy Overview by Region (1) (2)(unaudited) Stabilized Portfolio Occupancy Overview by Region, continued (1)(unaudited) Stabilized Portfolio Occupancy Overview by Region, continued (1)(unaudited) Stabilized Portfolio Occupancy Overview by Region, continued (1)(unaudited) Consolidated Ventures (Noncontrolling Property Partnerships)(unaudited, $ in thousands) Capital StructureAs of December 31, 2025 ($ in thousands) Debt MaturitiesAs of December 31, 2025 ($ in thousands) (7)Calculated based on the weighted average shares outstanding, including participating and non-participating share-based awards, and the dilutive impact of contingently issuable shares, and assuming the exchange of Definitions Included in Supplemental, continued FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS square feet, and the sale closed in January for gross sales proceeds of $124.5 million the tenant improvement phase The Company is initiating Nareit-defined FFO per share guidance for 2026 of $3.25 to $3.45 per diluted share. The table below reflects key assumptions for Definitions Included in Supplemental, continued Consolidated Statements of Operations(unaudited, $ and shares in thousands, except per share amounts) Supplemental Income Statement Detail(unaudited, $ in thousands) Same Property Net Operating Income Analysis (Cash Basis)(1)(unaudited, $ in thousands) EBITDA, EBITDAre, and Adjusted EBITDAre (1)(unaudited, $ in thousands) Leases Executed (1) Stabilized Portfolio Capital Expenditures($ in thousands) Stabilized Portfolio Lease Expirations (1)(2)($ in thousands, except for Annualized Base Rent per sq. ft.) Stabilized Portfolio Lease Expirations by Region($ in thousands, except for Annualized Base Rent per sq. ft.) Top 20 Tenants (1)($ in thousands) Tenant Industry Diversification (1) 2025 Acquisitions($ in millions) 2025 Dispositions, Held for Sale, and Assets Under Contract ($ in millions) Stabilized Development & Redevelopment Projects($ in millions) In-Process Development & Redevelopment Projects($ in millions) Future Development Pipeline($ in millions) Debt Covenants & Leverage Ratios (1)($ in thousands) Management Statements on Non-GAAP Supplemental Measures Management Statements on Non-GAAP Supplemental Measures, continued Management Statements on Non-GAAP Supplemental Measures, continued Definitions Included in Supplemental Definitions Included in Supplemental, continued Reconciliation of Net Income Available to Common Stockholders to Same Property Cash Net Operating Income (1) (unaudited, $ in thousands) Reconciliation of Historical Net Income Available to Common Stockholders to Company’s Share of Adjusted EBITDAre (1) (unaudited, $ in thousands) Reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution (unaudited, $ in thousands) all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders. Board of DirectorsEdward F. Brennan, PhDChairAngela M. AmanDaryl J. CarterJolie A. HuntLouisa G. RitterGary R. StevensonPeter B. StonebergExecutive and Senior Management TeamAngela M. AmanChief Executive OfficerJustin W. SmartPresidentJeffrey R. KuehlingEVP, Chief Financial Officer and TreasurerA. Robert ParatteEVP, Chief Leasing OfficerHeidi R. RothEVP, Chief Administrative OfficerSherrie S. SchwartzEVP, Chief Human Resources OfficerLauren N. StadlerEVP, General Counsel and SecretaryEliott L. TrencherEVP, Chief Investment OfficerChandni JalanSVP, Chief Accounting Officer Company Background Three Months EndedYear Ended 12/31/20259/30/20256/30/20253/31/202512/31/202412/31/202512/31/2024INCOME ITEMS:Revenues$272,187$279,744$289,892$270,844$286,379$1,112,667$1,135,629Lease Termination Fees (1)1,54130910,7545062,46913,1107,066Capitalized Interest and Debt Costs20,63222,57421,33320,54821,31285,08782,461Capitalized Internal Overhead Costs (2)4,1204,6823,8074,6344,61417,24320,644Other Capitalized Development Costs (3)6,3827,3535,5054,9743,60424,21412,062Non-Cash Amortization of Share-Based Compensation Awards5,1455,4364,5823,9274,44319,09017,714EARNINGS METRICS:Net Income Available to Common Stockholders $12,444$156,220$68,449$39,008$59,460$276,121$210,969Net Operating Income (1)(4)176,426188,775190,779180,239193,645736,219764,456EBITDAre (5)158,139171,561181,500161,999181,421673,199728,444Company's Share of EBITDAre (5)150,555164,126167,914154,719173,578637,314696,855Company's Share of Adjusted EBITDAre (5)148,350161,007167,402153,585168,788630,344659,103Funds From Operations (6)117,158130,561135,891122,310144,875505,920551,633Funds Available for Distribution (6)90,534100,939103,889109,096109,087404,458446,069PER SHARE INFORMATION (7):Net Income Available to Common Stockholders per common share - diluted$0.10$1.31$0.57$0.33$0.50$2.32$1.77Funds From Operations per common share - diluted (6)0.971.081.131.021.204.204.59Dividends declared per common share0.540.540.540.540.542.162.16RATIOS (8):Net Operating Income Margin (1)64.8%67.5%65.8%66.5%67.6%66.2%67.3%Net Debt to Company's Share of EBITDAre Ratio (5)(8)7.0x6.4x6.6x6.6x6.4xN/AN/ANet Debt to Company's Share of Adjusted EBITDAre Ratio (5)(8)7.1x6.5x6.7x6.9x6.8xN/AN/AFixed Charge Coverage Ratio - Net Income0.3x3.1x1.6x0.9x1.3x1.5x1.1xFixed Charge Coverage Ratio - Company’s Share of EBITDAre (5)3.0x3.2x3.4x3.2x3.3x3.2x3.2xNet Income Payout Ratio377.2%39.7%81.1%147.6%99.0%85.3%110.2%FFO / FAD Payout Ratio (6)55.1% / 71.3%49.4% / 63.9%47.5% / 62.1%52.7% / 59.1%44.4% / 59.0%51.0% / 63.8%46.5% / 57.6%STABILIZED PORTFOLIO INFORMATION:Period End Occupancy Percentage81.6%81.0%80.8%81.4%82.8%81.6%82.8%Period End Leased Percentage83.8%83.3%83.5%83.9%84.9%83.8%84.9%Average Occupancy80.9%80.7%80.8%81.4%83.3%80.9%83.9%Lease Composition (Net / Gross) (9)52% / 48%50% / 50%51% / 49%52% / 48%52% / 48%N/AN/A Three Months EndedYear Ended12/31/20259/30/20256/30/20253/31/202512/31/202412/31/202512/31/2024Cash Operating Revenues:Base rent$197,081$201,633$201,955$202,640$204,705$803,309$811,146Tenant reimbursements47,77951,86748,03546,31347,621193,994197,198Other revenues (2)18,44216,65619,96715,63018,70770,69567,733Settlement and restoration fee income4502,663639636,7093,81511,565Other property income (3)4,8244,8354,8214,6005,02419,08017,514Total cash operating revenues268,576277,654275,417269,246282,7661,090,8931,105,156Cash Operating Expenses:Property expenses 64,67361,76458,57558,71463,245243,726243,378Real estate taxes26,55625,87826,76528,36524,026107,564108,951Ground leases2,9132,9402,9412,9422,90211,73611,361Total cash operating expenses94,14290,58288,28190,02190,173363,026363,690Cash Net Operating Income (4)174,434187,072187,136179,225192,593727,867741,466Deferred income and lease incentives, net (5)2577077718341,7572,5699,932Amortization of deferred revenue related to tenant-funded tenant improvements3,5473,6393,7703,6884,06514,64419,138Straight-line rents, net(2,358)(1,303)(3,354)(4,613)(3,667)(11,628)(9,184)Amortization of net below market rents6247648458468463,0793,521Deferred settlement and restoration fee income - (2,026)1,689337(1,857) - - Other (6)(78)(78)(78)(78)(92)(312)(417)Net Operating Income (4)176,426188,775190,779180,239193,645736,219764,456Lease termination fees (1)1,54130910,7545062,46913,1107,066General and administrative expenses(19,485)(18,247)(18,475)(16,901)(16,977)(73,108)(71,074)Leasing costs(2,592)(2,610)(2,277)(2,873)(2,013)(10,352)(8,764)Other income (expense) (7)4491190(157)(493)168(992)Interest income2,2053,1195121,1344,7906,97037,752Interest expense(32,148)(32,152)(30,844)(31,148)(33,245)(126,292)(145,287)Depreciation and amortization(92,623)(87,487)(87,625)(87,119)(89,121)(354,854)(356,182)Gains on sales of depreciable operating properties - 110,48416,554 - - 127,038 - Impairment of real estate assets(16,259) - - - - (16,259) - Gain on sale of long-lived assets - - - - 5,979 - 5,979Net Income$17,109$162,282$79,568$43,681$65,034$302,640$232,954 Rentable Square FeetOccupied atLeased atCampusSubmarket12/31/20259/30/202512/31/20259/30/2025LOS ANGELES, CALIFORNIA2240 E. Imperial HighwayKilroy Airport CenterEl Segundo122,870100.0%100.0%100.0%100.0%2250 E. Imperial HighwayKilroy Airport CenterEl Segundo298,72837.7%37.7%37.7%37.7%2260 E. Imperial HighwayKilroy Airport CenterEl Segundo298,728100.0%100.0%100.0%100.0%909 N. Pacific Coast HighwayThe NinesEl Segundo244,88067.4%62.7%70.3%70.3%999 N. Pacific Coast HighwayThe NinesEl Segundo138,38951.9%51.9%51.9%51.9%1500 N. El Centro AvenueColumbia SquareHollywood / West Hollywood113,44763.6%63.6%63.6%63.6%1525 N. Gower StreetColumbia SquareHollywood / West Hollywood9,610100.0%100.0%100.0%100.0%1575 N. Gower StreetColumbia SquareHollywood / West Hollywood264,43098.3%98.3%98.3%98.3%6115 W. Sunset BoulevardColumbia SquareHollywood / West Hollywood26,23873.4%71.1%73.4%71.1%6121 W. Sunset BoulevardColumbia SquareHollywood / West Hollywood93,4180.0%100.0%100.0%100.0%1350 Ivar AvenueOn VineHollywood / West Hollywood16,448100.0%100.0%100.0%100.0%1355 Vine StreetOn VineHollywood / West Hollywood183,129100.0%100.0%100.0%100.0%1375 Vine StreetOn VineHollywood / West Hollywood159,236100.0%100.0%100.0%100.0%1395 Vine StreetOn VineHollywood / West Hollywood2,575100.0%100.0%100.0%100.0%8560 W. Sunset BoulevardThe SunsetHollywood / West Hollywood76,35998.9%98.9%98.9%98.9%8570 W. Sunset BoulevardThe SunsetHollywood / West Hollywood49,27699.0%99.0%99.0%99.0%8580 W. Sunset BoulevardThe SunsetHollywood / West Hollywood6,8750.0%0.0%0.0%0.0%8590 W. Sunset BoulevardThe SunsetHollywood / West Hollywood56,75099.7%99.7%99.7%99.7%3750 Kilroy Airport WayAeroLong Beach10,718100.0%100.0%100.0%100.0%3760 Kilroy Airport WayAeroLong Beach166,76177.5%78.7%83.4%78.7%3780 Kilroy Airport WayAeroLong Beach221,45297.4%98.2%97.4%98.2%3800 Kilroy Airport WayAeroLong Beach192,47693.4%93.4%93.4%93.4%3840 Kilroy Airport WayAeroLong Beach138,441100.0%100.0%100.0%100.0%3880 Kilroy Airport WayAeroLong Beach96,92291.3%51.9%91.3%90.8%3900 Kilroy Airport WayAeroLong Beach130,93562.3%57.1%80.9%62.3%2100/2110 Colorado AvenueSanta Monica Media CenterWest Los Angeles104,85355.4%55.4%55.4%55.4%12233 W. Olympic BoulevardTribeca WestWest Los Angeles156,74642.0%47.3%42.0%47.3%12100 W. Olympic BoulevardWestside Media CenterWest Los Angeles155,67968.7%68.7%68.7%68.7%12200 W. Olympic BoulevardWestside Media CenterWest Los Angeles154,54432.0%32.0%37.0%32.0%12312 W. Olympic BoulevardWestside Media CenterWest Los Angeles78,900100.0%100.0%100.0%100.0%335-345 N. Maple Drive *Maple PlazaBeverly Hills306,36677.5%72.3%81.6%79.3%3101-3243 S. La Cienega BoulevardBlackwelderCulver City166,20743.6%36.4%43.6%38.4%Total Los Angeles4,242,38675.1%74.0%78.8%75.9% 2026 guidance. --------------- ◦In December, entered into an agreement to sell the remaining portion of the land at Santa Fe Summit for $86.0 million in gross sales •During the third quarter of 2025, added 4690 Executive Drive, an approximately 52,000-square-foot redevelopment project in the University Three Months EndedYear Ended12/31/20259/30/20256/30/20253/31/202512/31/202412/31/202512/31/2024FUNDS FROM OPERATIONS: Net income available to common stockholders$12,444$156,220$68,449$39,008$59,460$276,121$210,969Adjustments:Net income attributable to noncontrolling common units of the Operating Partnership1201,5246633755932,6822,062Net income attributable to noncontrolling interests in consolidated property partnerships4,5454,53810,4564,2984,98123,83719,923Depreciation and amortization of real estate assets 91,21386,08086,24385,73587,536349,271349,828Gains on sales of depreciable operating properties - (110,484)(16,554) - - (127,038) - Impairment of real estate assets16,259 - - - - 16,259 - Funds From Operations attributable to noncontrolling interests in consolidated property partnerships(7,423)(7,317)(13,366)(7,106)(7,695)(35,212)(31,149)Funds From Operations$117,158$130,561$135,891$122,310$144,875$505,920$551,633Weighted average common shares/units outstanding - basic (2)119,869119,870119,848119,750119,521119,835119,729Weighted average common shares/units outstanding - diluted (2)120,684120,397120,246120,220120,234120,388120,236FFO per common share/unit - basic$0.98$1.09$1.13$1.02$1.21$4.22$4.61FFO per common share/unit - diluted$0.97$1.08$1.13$1.02$1.20$4.20$4.59FUNDS AVAILABLE FOR DISTRIBUTION:Funds From Operations$117,158$130,561$135,891$122,310$144,875$505,920$551,633Adjustments:Recurring tenant improvements, leasing commissions, and capital expenditures(31,724)(36,959)(34,040)(17,378)(33,089)(120,101)(92,583)Amortization of deferred revenue related to tenant-funded tenant improvements(3,547)(3,639)(3,770)(3,688)(4,065)(14,644)(19,138)Straight-line rents, net2,3581,3033,3544,6133,66711,6289,184Amortization of net below market rents(624)(764)(845)(846)(846)(3,079)(3,521)Amortization of deferred financing costs and net debt discount/premium1,1621,2181,1781,2191,6504,7776,893Non-cash amortization of share-based compensation awards and adjustments for executive retirement obligations (3)5,1455,4364,5823,9274,44319,0901,324Lease related adjustments and other (4)(640)1,877(2,626)(1,677)(2,359)(3,066)(7,539)Gain on sale of long-lived assets (5) - - - - (5,979) - (5,979)Adjustments attributable to noncontrolling interests in consolidated property partnerships 1,2461,9061656167903,9335,795Funds Available for Distribution$90,534$100,939$103,889$109,096$109,087$404,458$446,069 Rentable Square FeetOccupied atLeased atCampusSubmarket (2)12/31/20259/30/202512/31/20259/30/2025SAN DIEGO, CALIFORNIA12225 El Camino RealCarmel Valley Corporate CenterDel Mar58,401100.0%100.0%100.0%100.0%12235 El Camino RealCarmel Valley Corporate CenterDel Mar53,751100.0%100.0%100.0%100.0%12400 High Bluff Drive 12400 High Bluff DriveDel Mar216,518100.0%100.0%100.0%100.0%12348 High Bluff DriveDel Mar Tech CenterDel Mar39,19251.5%51.5%51.5%51.5%3579 Valley Centre Drive Kilroy Centre Del MarDel Mar54,960100.0%100.0%100.0%100.0%3611 Valley Centre Drive Kilroy Centre Del MarDel Mar132,425100.0%100.0%100.0%100.0%3661 Valley Centre DriveKilroy Centre Del MarDel Mar124,75634.2%34.2%34.2%34.2%3721 Valley Centre DriveKilroy Centre Del MarDel Mar117,77794.8%94.8%94.8%94.8%3811 Valley Centre DriveKilroy Centre Del MarDel Mar118,912100.0%100.0%100.0%100.0%12770 El Camino RealOne PaseoDel Mar75,035100.0%65.3%100.0%100.0%12780 El Camino RealOne PaseoDel Mar140,591100.0%100.0%100.0%100.0%12790 El Camino RealOne PaseoDel Mar87,944100.0%100.0%100.0%100.0%12830 El Camino RealOne PaseoDel Mar196,444100.0%100.0%100.0%100.0%12860 El Camino RealOne PaseoDel Mar92,042100.0%92.5%100.0%100.0%3745 Paseo PlaceOne PaseoDel Mar95,87189.0%90.0%91.7%95.5%12707 High Bluff Drive *One Paseo JunctionDel Mar59,24591.2%91.2%91.2%91.2%12777 High Bluff Drive *One Paseo JunctionDel Mar44,486100.0%100.0%100.0%100.0%12340 El Camino Real The CaminosDel Mar110,95025.9%25.9%25.9%25.9%12390 El Camino RealThe CaminosDel Mar73,238100.0%100.0%100.0%100.0%2100 Kettner Boulevard 2100 KettnerLittle Italy / Point Loma212,91545.0%33.9%50.2%50.1%2305 Historic Decatur RoadKilroy Liberty StationLittle Italy / Point Loma107,45688.3%88.3%88.3%88.3%4690 Executive Drive * 4690 ExecutiveUniversity Towne Center52,0740.0%0.0%47.3%47.3%9455 Towne Centre Drive9455 Towne Centre DriveUniversity Towne Center160,444100.0%100.0%100.0%100.0%9514 Towne Centre Drive9514 Towne Centre Drive University Towne Center70,616100.0%100.0%100.0%100.0%3530 John Hopkins Court*NautilusTorrey Pines45,589100.0%N/A100.0%N/A3535 General Atomics Court*NautilusTorrey Pines80,54328.1%N/A28.1%N/A3550 John Hopkins Court*NautilusTorrey Pines62,739100.0%N/A100.0%N/A3565 General Atomics Court*NautilusTorrey Pines43,295100.0%N/A100.0%N/ATotal San Diego2,728,20983.7%82.8%85.1%86.2% Rentable Square FeetOccupied atLeased atCampusSubmarket12/31/20259/30/202512/31/20259/30/2025SAN FRANCISCO BAY AREA, CALIFORNIA100 Hooper Street100 HooperSan Francisco CBD417,91497.4%97.4%97.4%97.4%100 First Street100 First StreetSan Francisco CBD480,45795.3%94.3%95.3%94.3%201 Third Street201 Third StreetSan Francisco CBD355,96056.0%51.9%58.7%60.6%303 Second Street303 Second StreetSan Francisco CBD784,65866.1%65.5%66.6%66.6%350 Mission Street350 Mission StreetSan Francisco CBD455,34099.7%99.7%99.7%99.7%360 Third Street360 Third StreetSan Francisco CBD436,35766.6%66.6%71.3%71.3%250 Brannan StreetThe BrannansSan Francisco CBD100,850100.0%100.0%100.0%100.0%301 Brannan StreetThe BrannansSan Francisco CBD82,834100.0%100.0%100.0%100.0%333 Brannan StreetThe BrannansSan Francisco CBD185,602100.0%100.0%100.0%100.0%345 Brannan StreetThe BrannansSan Francisco CBD110,05099.7%99.7%99.7%99.7%350 Oyster Point BoulevardKilroy Oyster Point - Phase 1South San Francisco234,892100.0%100.0%100.0%100.0%352 Oyster Point BoulevardKilroy Oyster Point - Phase 1South San Francisco232,215100.0%100.0%100.0%100.0%354 Oyster Point BoulevardKilroy Oyster Point - Phase 1South San Francisco193,472100.0%100.0%100.0%100.0%345 Oyster Point BoulevardOyster Point Tech CenterSouth San Francisco40,410100.0%100.0%100.0%100.0%347 Oyster Point BoulevardOyster Point Tech CenterSouth San Francisco39,780100.0%100.0%100.0%100.0%349 Oyster Point BoulevardOyster Point Tech CenterSouth San Francisco65,3400.0%0.0%0.0%0.0%900 Jefferson AvenueCrossing 900Other Peninsula228,226100.0%100.0%100.0%100.0%900 Middlefield RoadCrossing 900Other Peninsula119,616100.0%100.0%100.0%100.0%4100 Bohannon DriveMenlo Corporate CenterOther Peninsula47,643100.0%100.0%100.0%100.0%4200 Bohannon DriveMenlo Corporate CenterOther Peninsula43,60069.4%69.4%69.4%69.4%4300 Bohannon DriveMenlo Corporate CenterOther Peninsula63,43038.8%38.8%38.8%38.8%4400 Bohannon Drive *Menlo Corporate CenterOther Peninsula48,4140.0%0.0%0.0%0.0%4500 Bohannon DriveMenlo Corporate CenterOther Peninsula63,429100.0%100.0%100.0%100.0%4600 Bohannon DriveMenlo Corporate CenterOther Peninsula48,413100.0%100.0%100.0%100.0%4700 Bohannon DriveMenlo Corporate CenterOther Peninsula63,429100.0%100.0%100.0%100.0%680 E. Middlefield Road680 & 690 MiddlefieldSilicon Valley171,676100.0%100.0%100.0%100.0%690 E. Middlefield Road680 & 690 MiddlefieldSilicon Valley171,215100.0%100.0%100.0%100.0%1701 Page Mill RoadPage Mill / PorterSilicon Valley128,688100.0%100.0%100.0%100.0%3150 Porter DrivePage Mill / PorterSilicon Valley36,886100.0%100.0%100.0%100.0%1290-1300 Terra Bella Avenue Terra BellaSilicon Valley114,175100.0%100.0%100.0%100.0%Total San Francisco Bay Area5,564,97186.2%85.7%86.8%86.8% Rentable Square FeetOccupied atLeased atCampusSubmarket12/31/20259/30/202512/31/20259/30/2025SEATTLE, WASHINGTON333 Dexter Avenue North333 DexterLake Union / Denny Regrade618,766100.0%100.0%100.0%100.0%401 Terry Avenue North401 TerryLake Union / Denny Regrade174,530100.0%100.0%100.0%100.0%701 N. 34th StreetFremont Lake Union CenterLake Union / Denny Regrade143,13664.6%44.8%64.6%64.5%801 N. 34th StreetFremont Lake Union CenterLake Union / Denny Regrade173,615100.0%100.0%100.0%100.0%837 N. 34th StreetFremont Lake Union CenterLake Union / Denny Regrade112,48771.3%71.3%100.0%100.0%2001 8th AvenueWest8Lake Union / Denny Regrade535,39526.0%26.0%36.6%32.3%320 Westlake Avenue NorthWestlake TerryLake Union / Denny Regrade184,64496.1%96.1%100.0%100.0%321 Terry Avenue NorthWestlake TerryLake Union / Denny Regrade135,755100.0%100.0%100.0%100.0%601 108th Avenue NEKey CenterBellevue490,73887.1%87.1%87.1%87.1%10900 NE 4th StreetSkyline TowerBellevue428,55788.6%98.9%88.6%99.9%Total Seattle2,997,62380.0%80.6%83.2%84.1%AUSTIN, TEXAS200 W. 6th StreetIndeed TowerAustin CBD758,97582.2%82.2%87.9%87.9%Total Austin758,97582.2%82.2%87.9%87.9%Total Stabilized Portfolio16,292,16481.6%81.0%83.8%83.3% Kilroy Realty Corporate Data & Financial HighlightsCompany Background2Financial Highlights3Consolidated Balance Sheets 4Consolidated Statements of Operations5Funds From Operations & Funds Available for Distribution6Supplemental Income Statement Detail7Net Operating Income8Same Property Net Operating Income Analysis (Cash Basis)9EBITDA, EBITDAre, and Adjusted EBITDAre10Portfolio DataStabilized Portfolio Occupancy Overview by Region12-16Leases Executed17Stabilized Portfolio Capital Expenditures18Stabilized Portfolio Lease Expirations19-20Top 20 Tenants21Tenant Industry Diversification222025 Acquisitions232025 Dispositions, Held for Sale, and Assets Under Contract24Consolidated Ventures (Noncontrolling Property Partnerships)25DevelopmentStabilized Development & Redevelopment Projects27In-Process Development & Redevelopment Projects28Future Development Pipeline 29Debt & Capitalization DataCapital Structure31Debt Maturities32Debt Covenants & Leverage Ratios33Non-GAAP Supplemental Measures35-37Definitions & Reconciliations39-45 Total Rentable Square FeetOccupied atLeased atYTD NOI %Rentable Square Feet %12/31/20259/30/202512/31/20259/30/2025LOS ANGELESEl Segundo2.9%6.8%1,103,59569.9%68.8%70.5%70.5%Hollywood / West Hollywood7.5%6.5%1,057,79185.4%84.5%94.2%84.5%Long Beach2.6%5.9%957,70588.1%83.8%91.7%88.5%West Los Angeles2.2%4.0%650,72255.2%56.5%56.4%56.5%Beverly Hills0.5%1.9%306,36677.5%72.3%81.6%79.3%Culver City0.0%1.0%166,20743.6%36.4%43.6%38.4%Total Los Angeles15.7%26.1%4,242,38675.1%74.0%78.8%75.9%SAN DIEGODel Mar12.8%11.6%1,892,53889.2%87.5%89.3%89.5%Little Italy / Point Loma0.7%2.0%320,37159.5%52.1%63.0%62.9%University Towne Center1.9%1.7%283,13481.6%81.6%90.3%90.3%Torrey Pines0.1%1.4%232,16675.1%N/A75.1%N/ATotal San Diego15.5%16.7%2,728,20983.7%82.8%85.1%86.2%SAN FRANCISCO BAY AREASan Francisco CBD26.8%20.9%3,410,02282.3%81.6%83.3%83.4%South San Francisco9.2%4.9%806,10991.9%91.9%91.9%91.9%Other Peninsula5.9%4.5%726,20086.2%86.2%86.2%86.2%Silicon Valley5.0%3.8%622,640100.0%100.0%100.0%100.0%Total San Francisco Bay Area46.9%34.1%5,564,97186.2%85.7%86.8%86.8%SEATTLELake Union / Denny Regrade10.8%12.8%2,078,32876.6%75.3%81.2%80.1%Bellevue6.2%5.6%919,29587.8%92.6%87.8%93.1%Total Seattle17.0%18.4%2,997,62380.0%80.6%83.2%84.1%AUSTINAustin CBD4.9%4.7%758,97582.2%82.2%87.9%87.9%Total Austin4.9%4.7%758,97582.2%82.2%87.9%87.9%Total Stabilized Portfolio100.0%100.0%16,292,16481.6%81.0%83.8%83.3% LocationApprox. Developable Square Feet / Resi Units (1)Total Cash Costs Incurred as of 12/31/2025 (2)Los Angeles1633 26th Street (3)West Los Angeles190,000$16San DiegoSanta Fe Summit (3)56 Corridor600,000 - 650,0001172045 Pacific HighwayLittle Italy / Point Loma275,00057Kilroy East VillageEast Village1,100 units68San Francisco Bay AreaKilroy Oyster Point - Phases 3 and 4South San Francisco875,000 - 1,000,000240Flower MartSan Francisco CBD2,300,000664SeattleSIX0Lake Union / Denny Regrade925,000 and 650 units197AustinStadium TowerStadium District / Domain493,00076Total$1,435 The Company’s guidance estimates for the full year 2026, and the reconciliation of Net income available to common stockholders per share - diluted and Key Assumptions2026 AssumptionsAverage full year occupancy76.0% to 78.0%Average full year occupancy excluding KOP 280.0% to 81.5%Same Property Cash Net Operating Income (“NOI”) growth (1)(1.50%) to 0.00%NOI from Development Properties (2)($23.5) to ($25.0 million) Non-Cash GAAP NOI adjustments (1) (3)$12 to $14 millionGAAP lease termination fee income$3.0 to $4.5 millionGeneral and administrative and Leasing costs$89 to $91 millionInterest income$2 to $3 millionGross interest expense$212 to $214 millionCapitalized interest (4)$32 to $34 millionTotal development spending (5)$150 to $200 millionDispositions+/- $300 million proceeds. The transaction represents approximately 17 acres of the 22-acre site and is expected to close upon receipt of Towne Center submarket of San Diego, to the stabilized portfolio. The property is 47% leased #Tenant NameRegionAnnualized Base Rental Revenue (2)RentableSquare FeetPercentage ofTotal Annualized Base Rental RevenuePercentage ofTotal RentableSquare FeetYear(s) of Significant Lease Expiration(s) (3)Weighted Average Remaining Lease Term (Years)1Global technology companySeattle / San Diego$44,696849,8265.9%5.2%2032 - 2033 / 20377.62Cruise LLCSan Francisco Bay Area35,449374,6184.6%2.3%20315.93Stripe, Inc.San Francisco Bay Area33,110425,6874.3%2.6%20348.54Adobe Systems, Inc.San Francisco Bay Area / Seattle27,897537,7993.7%3.3%2027 (4) / 20315.45Salesforce, Inc.San Francisco Bay Area / Seattle24,706472,9883.2%2.9%2029 - 2030 / 20324.46Okta, Inc.San Francisco Bay Area24,206293,0013.2%1.8%20282.87DoorDash, Inc.San Francisco Bay Area23,842236,7593.1%1.5%20326.18Netflix, Inc.Los Angeles21,854361,3882.9%2.2%20326.69Cytokinetics, Inc.San Francisco Bay Area18,167234,8922.4%1.4%20337.810Box, Inc.San Francisco Bay Area16,853287,6802.2%1.8%20282.511DIRECTV, LLCLos Angeles16,085532,9562.1%3.3%2026 - 2027 (5)1.712Tandem Diabetes Care, Inc.San Diego 15,884181,9492.1%1.1%20359.313Synopsys, Inc.San Francisco Bay Area15,492342,8912.0%2.1%20304.714Neurocrine Biosciences, Inc.San Diego 14,397273,0211.9%1.7%2029 / 20315.215Viacom International, Inc.Los Angeles13,718220,3301.8%1.4%20283.016Indeed, Inc. Austin CBD13,430330,3941.8%2.0%20349.017Sony Group CorporationSan Francisco Bay Area / Los Angeles13,382131,6421.8%0.8%20304.218Amazon.comSeattle12,921284,3071.7%1.7%20304.119Nektar Therapeutics, Inc.San Francisco Bay Area12,297135,9741.6%0.8%20304.120Splunk, Inc.San Francisco Bay Area10,323100,8501.4%0.6%20315.9Total Top 20 Tenants$408,7096,608,95253.7%40.5%5.5 PropertyVenture PartnerSubmarketRentable Square FeetKRC Ownership % (1)100 First Street, San Francisco, CANorges Bank Investment ManagementSan Francisco CBD480,45756%303 Second Street, San Francisco, CANorges Bank Investment ManagementSan Francisco CBD784,65856%900 Jefferson Avenue and 900 Middlefield Road, Redwood City, CA (1)Local developerOther Peninsula347,84293% Stabilized Portfolio: 12/31/20259/30/20256/30/20253/31/202512/31/2024ASSETS:Land$1,641,913$1,661,679$1,627,754$1,750,820$1,750,820Buildings and improvements8,505,4868,658,2368,427,4058,617,7288,598,751Undeveloped land and construction in progress2,387,7422,355,1812,364,9382,356,3302,309,624Total real estate assets held for investment12,535,14112,675,09612,420,09712,724,87812,659,195Accumulated depreciation and amortization(2,843,811)(2,952,576)(2,877,165)(2,900,113)(2,824,616)Total real estate assets held for investment, net9,691,3309,722,5209,542,9329,824,7659,834,579Real estate and other assets held for sale, net115,155 - 255,795 - - Cash and cash equivalents179,316372,416193,129146,711165,690Marketable securities30,80733,56931,62929,18727,965Current receivables, net12,76513,19111,71811,68011,033Deferred rent receivables, net424,794436,886436,964447,433451,996Deferred leasing costs and acquisition-related intangible assets, net278,232229,175208,266220,051225,937Right of use ground lease assets, net128,116128,396128,674128,949129,222Prepaid expenses and other assets, net54,56156,04658,72569,90951,935Total Assets$10,915,076$10,992,199$10,867,832$10,878,685$10,898,357LIABILITIES AND EQUITY:Liabilities:Secured debt, net$592,685$593,956$595,212$596,806$598,199Unsecured debt, net3,996,7743,995,5554,002,5074,001,0363,999,566Accounts payable, accrued expenses, and other liabilities288,963321,188273,600292,354285,011Ground lease liabilities127,628127,830128,030128,227128,422Accrued dividends and distributions65,00964,99664,98564,99064,850Deferred revenue and acquisition-related intangible liabilities, net125,628127,931131,606137,538142,437Rents received in advance and tenant security deposits75,70174,88873,56177,74971,003 Liabilities related to real estate assets held for sale4,945 - 4,887 - - Total liabilities5,277,3335,306,3445,274,3885,298,7005,289,488Equity:Stockholders’ EquityCommon stock1,1841,1831,1831,1831,181Additional paid-in capital5,230,7475,223,3695,216,3205,210,4155,209,653Retained earnings188,876240,810148,952144,867171,212Total stockholders’ equity5,420,8075,465,3625,366,4555,356,4655,382,046Noncontrolling InterestsCommon units of the Operating Partnership51,91153,15452,19252,10552,472Consolidated property partnerships165,025167,339174,797171,415174,351Total noncontrolling interests216,936220,493226,989223,520226,823Total equity5,637,7435,685,8555,593,4445,579,9855,608,869Total Liabilities And Equity$10,915,076$10,992,199$10,867,832$10,878,685$10,898,357 Three Months EndedYear Ended12/31/20259/30/20256/30/20253/31/202512/31/202412/31/202512/31/2024RevenuesRental income$267,363$274,909$285,071$266,244$281,355$1,093,587$1,118,115Other property income4,8244,8354,8214,6005,02419,08017,514Total revenues272,187279,744289,892270,844286,3791,112,6671,135,629ExpensesProperty expenses64,67361,76458,57558,71463,249243,726243,441Real estate taxes26,55625,87826,76528,36524,026107,564108,951Ground leases2,9913,0183,0193,0202,99012,04811,715General and administrative expenses19,48518,24718,47516,90116,97773,10871,074Leasing costs2,5922,6102,2772,8732,01310,3528,764Depreciation and amortization92,62387,48787,62587,11989,121354,854356,182Total expenses208,920199,004196,736196,992198,376801,652800,127Other Income (Expenses)Interest income2,2053,1195121,1344,7906,97037,752Interest expense(32,148)(32,152)(30,844)(31,148)(33,245)(126,292)(145,287)Other income (expense) (1)4491190(157)(493)168(992)Gains on sales of depreciable operating properties - 110,48416,554 - - 127,038 - Impairment of real estate assets (2)(16,259) - - - - (16,259) - Gain on sale of long-lived assets (3) - - - - 5,979 - 5,979Total other (expenses) income(46,158)81,542(13,588)(30,171)(22,969)(8,375)(102,548)Net Income17,109162,28279,56843,68165,034302,640232,954Net income attributable to noncontrolling common units of the Operating Partnership(120)(1,524)(663)(375)(593)(2,682)(2,062)Net income attributable to noncontrolling interests in consolidated property partnerships (4,545)(4,538)(10,456)(4,298)(4,981)(23,837)(19,923)Total net income attributable to noncontrolling interests(4,665)(6,062)(11,119)(4,673)(5,574)(26,519)(21,985)Net Income Available To Common Stockholders$12,444$156,220$68,449$39,008$59,460$276,121$210,969Weighted average common shares outstanding - basic118,338118,296118,285118,195118,047118,279117,649Weighted average common shares outstanding - diluted119,153118,822118,683118,664118,759118,832118,157Net Income Available To Common Stockholders Per ShareNet income available to common stockholders per share - basic$0.10$1.32$0.58$0.33$0.50$2.33$1.78Net income available to common stockholders per share - diluted$0.10$1.31$0.57$0.33$0.50$2.32$1.77 Three Months Ended December 31,Year Ended December 31, (2)20252024% Contribution20252024% ContributionTotal Same Property PortfolioNumber of properties112112Square Feet15,549,41315,549,413Average Occupancy (3)81.7%83.5%81.4%83.8%Percent of Stabilized Portfolio95.4%95.4%Percent of Total Portfolio93.0%93.0%Cash Operating Revenues:Base rent$184,200$187,611(1.9)%$739,717$744,780(0.7)%Tenant reimbursements46,27544,8360.8%184,530185,882(0.2)%Other revenues (4)18,29118,725(0.2)%70,35967,6900.4%Settlement and restoration fee income4506,709(3.5)%3,81510,854(1.0)%Other property income (5)4,0754,544(0.3)%16,99016,1220.1%Total cash operating revenues253,291262,425(5.1)%1,015,4111,025,328(1.4)%Cash Operating Expenses:Property expenses59,24058,552(0.4)%224,133226,0670.3%Real estate taxes24,44121,357(1.7)%97,02698,6030.2%Ground leases2,9142,9020.0%11,73611,361(0.1)%Total cash operating expenses86,59582,811(2.1)%332,895336,0310.4%Cash Net Operating Income (6)(7)(8)$166,696$179,614(7.2)%$682,516$689,297(1.0)% Three Months Ended12/31/20259/30/20256/30/20253/31/202512/31/2024Net Income Available to Common Stockholders$12,444$156,220$68,449$39,008$59,460Interest expense32,14832,15230,84431,14833,245Depreciation and amortization92,62387,48787,62587,11989,121Taxes (2) - 1241751 - EBITDA137,215275,983186,935157,326181,826Net income attributable to noncontrolling common units of the Operating Partnership1201,524663375593Net income attributable to noncontrolling interests in consolidated property partnerships4,5454,53810,4564,2984,981Gains on sales of depreciable operating properties - (110,484)(16,554) - - Impairment of real estate assets16,259 - - - - Gain on sales of long-lived assets - - - - (5,979)EBITDAre158,139171,561181,500161,999181,421EBITDAre attributable to noncontrolling interests in consolidated property partnerships(7,584)(7,435)(13,586)(7,280)(7,843)Company's Share of EBITDAre150,555164,126167,914154,719173,578Interest income(2,205)(3,119)(512)(1,134)(4,790)Company's Share of Adjusted EBITDAre$148,350$161,007$167,402$153,585$168,788 Quarter to DateYear to DateQ4 2025Q3 2025Q2 2025Q1 2025Q4 202420252024Second Generation Capital Expenditures: (1) (2)Capital Improvements$10,068$9,529$13,548$6,635$13,935$39,780$40,660Tenant Improvements & Leasing Commissions 21,65627,43020,49210,74319,15480,32151,923Total$31,724$36,959$34,040$17,378$33,089$120,101$92,583Average Capital Expenditures to Average NOI Ratio - Trailing Five Quarters16.5%Q4 2025Q3 2025Q2 2025Q1 2025Q4 202420252024Major Repositioning Capital Expenditures: (1) (3) Capital Improvements$60$39$702$93$1,716$894$23,087Tenant Improvements & Leasing Commissions - - - - - - 89Total $60$39$702$93$1,716$894$23,176Q4 2025Q3 2025Q2 2025Q1 2025Q4 202420252024First Generation Capital Expenditures: (1)Tenant Improvements & Leasing Commissions$5,098$4,268$5,834$3,914$2,259$19,114$17,526Total$5,098$4,268$5,834$3,914$2,259$19,114$17,526 Year Region# ofExpiring LeasesTotalSquare Feet% of TotalLeased Sq. Ft.AnnualizedBase Rent (1)% of TotalAnnualizedBase RentAnnualized Base Rent per Sq. Ft. 2026Los Angeles39429,9103.3%$18,2432.4%$42.43San Diego531,7310.2%9570.1%30.16San Francisco Bay Area13298,2952.3%18,6572.4%62.55Seattle12289,4942.2%11,1761.5%38.61Austin - - - % - - % - Total691,049,4308.0%$49,0336.4%$46.722027Los Angeles41797,5316.0%$28,0423.7%$35.16San Diego1089,6020.7%4,5100.6%50.33San Francisco Bay Area633,4490.3%1,5960.1%47.71Seattle1090,4840.7%3,4500.5%38.13Austin - - - % - - % - Total671,011,0667.7%$37,5984.9%$37.192028Los Angeles38170,6831.3%$10,6061.4%$62.14San Diego13209,8391.6%12,4271.6%59.22San Francisco Bay Area12819,2076.2%52,5816.9%64.19Seattle744,9230.3%1,6500.2%36.73Austin - - - % - - % - Total701,244,6529.4%$77,26410.1%$62.082029Los Angeles22437,1613.3%$22,6043.0%$51.71San Diego16248,0281.9%13,8661.8%55.90San Francisco Bay Area10498,1483.8%27,2203.6%54.64Seattle11233,0831.8%10,2351.3%43.91Austin14,211 - %235 - % - Total601,420,63110.8%$74,1609.7%$52.202030Los Angeles17208,7431.6%$12,4341.6%$59.57San Diego24200,2641.5%14,4981.9%72.39San Francisco Bay Area15842,5676.5%54,7517.3%64.98Seattle10461,6703.5%21,7212.8%47.05Austin15,454 - %303 - %55.56Total671,718,69813.1%$103,70713.6%$60.342031andBeyondLos Angeles471,059,6808.1%$60,5827.9%$57.17San Diego421,490,89711.3%97,50812.8%65.40San Francisco Bay Area262,272,69417.3%179,69223.5%79.07Seattle241,271,6809.7%57,1597.5%44.95Austin16607,1334.6%27,9053.6%45.96Total1556,702,08451.0%$422,84655.3%$63.09 FFO per share and unit - diluted included within this press release, reflect management’s views on current and future market conditions, including LOS ANGELES, February 9, 2026 - Kilroy Realty Corporation (NYSE: KRC) (“Kilroy” or the “Company”) today reported financial results for the fourth entitlements for residential development •During the third quarter of 2025, added 4400 Bohannon Drive, an approximately 48,000-square-foot redevelopment project in the Other KEY DEBT COVENANTS (2)CovenantActual Performance as of December 31, 2025Unsecured Credit and Term Loan Facilities and Private Placement Notes:Total debt to total asset valueless than 60%35%Fixed charge coverage ratiogreater than 1.5x3.2xUnsecured debt ratiogreater than 1.67x2.75xUnencumbered asset pool debt service coverage greater than 1.75x3.56xUnsecured Senior Notes due 2028, 2029, 2030, 2032, 2033, 2035, and 2036: Total debt to total asset valueless than 60%35%Interest coveragegreater than 1.5x5.5xSecured debt to total asset valueless than 40%5%Unencumbered asset pool value to unsecured debtgreater than 150%301% As of 12/31/2025As of FilingLocationConstruction Start DateEstimated Stabilization Date (2)Estimated Rentable Square FeetTotal Estimated Investment Total Cash Costs Incurred (3) % Occupied% Leased% LeasedTENANT IMPROVEMENT (1)Life ScienceKilroy Oyster Point - Phase 2South San Francisco2Q 20211Q 2026871,738$1,175$8823%44%44%Total871,738$1,175$8823%44%44% Annualized Base Rent: Retention Rates (Leases Executed Including Subtenants): Three Months EndedYear Ended12/31/20259/30/20256/30/20253/31/202512/31/202412/31/202512/31/2024RevenuesIncome Statement Category*Base rentRental income$197,081$201,633$201,955$202,640$204,705$803,309$811,146*Tenant reimbursementsRental income47,77951,86748,03546,31347,621193,994197,198*Other revenues (1)Rental income18,44216,65619,96715,63018,70770,69567,733Deferred income and lease incentives, net (2)Rental income2577077718341,7572,5699,932Amortization of deferred revenue related to tenant-funded tenant improvementsRental income3,5473,6393,7703,6884,06514,64419,138Straight-line rents, netRental income(2,358)(1,303)(3,354)(4,613)(3,667)(11,628)(9,184)Amortization of net below market rentsRental income6247648458468463,0793,521*Settlement and restoration fee incomeRental income4502,663639636,7093,81511,565Deferred settlement and restoration fee incomeRental income - (2,026)1,689337(1,857) - - Cash lease termination fee incomeRental income1,15886710,588 - 1012,6136,376Deferred lease termination fee incomeRental income383(558)1665062,459497690*Other property income (3)Other property income4,8244,8354,8214,6005,02419,08017,514Total Revenues$272,187$279,744$289,892$270,844$286,379$1,112,667$1,135,629 Shares/UnitsAggregate Principal Amount or $ Value Equivalent % of Total Market CapitalizationStated Rate (1)Effective Rate (2)Maturity DateUnsecured DebtRevolving Credit Facility (3)$ - - %5.07%5.07%7/31/2028Term Loan Facility (4)200,0002.2%5.02%5.57%10/3/2027Private Placement Senior Notes Series A due 202650,0000.5%4.30%4.39%7/18/2026Private Placement Senior Notes Series B due 2026200,0002.2%4.35%4.44%10/18/2026Private Placement Senior Notes Series A due 2027175,0001.9%3.35%3.42%2/17/2027Private Placement Senior Notes Series B due 202975,0000.8%3.45%3.51%2/17/2029Private Placement Senior Notes due 2031350,0003.9%4.27%4.32%1/31/2031Senior Notes due 2028 (5)400,0004.4%4.75%4.87%12/15/2028Senior Notes due 2029400,0004.4%4.25%4.38%8/15/2029Senior Notes due 2030500,0005.5%3.05%3.17%2/15/2030Senior Notes due 2032 (5)425,0004.7%2.50%2.63%11/15/2032Senior Notes due 2033 (5)450,0005.0%2.65%2.73%11/15/2033Senior Notes due 2035400,0004.4%5.88%6.08%10/15/2035Senior Notes due 2036400,0004.4%6.25%6.41%1/15/2036$4,025,00044.3%4.14%4.44%Secured Debt (6)100 Hooper St., San Francisco Bay Area$148,8151.6%3.57%3.80%12/1/2026320 Westlake Ave. N. and 321 Terry Ave. N., Seattle76,6270.8%4.48%4.57%7/1/2027One Paseo Mixed-Use Campus, San Diego375,0004.1%5.90%6.13%8/10/2034$600,4426.5%5.14%5.35%Total Debt$4,625,44250.8%4.27%4.56%Equity and Noncontrolling Interest in the Operating Partnership (7)Common limited partnership units outstanding (8)1,133,562$42,3610.5%Shares of common stock outstanding118,372,4514,423,57848.7%Total Equity and Noncontrolling Interest in the Operating Partnership$4,465,93949.2%Total Market Capitalization$9,091,381100.0% EBITDA, EBITDAre, Company's Share of EBITDAre, and Company's Share of Adjusted EBITDAre: Funds From Operations: Gross Lease Types: assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this press release. These guidance Operating Property DispositionsSubmarketMonth ofDispositionNumber of BuildingsRentableSquare FeetSalesPrice (1)1st QuarterNone - - $ - 2nd Quarter501 Santa Monica BoulevardWest Los AngelesJune178,50940.03rd QuarterSilicon Valley CampusSilicon ValleySeptember4663,460365.04th Quarter6255 W. Sunset Boulevard (Sunset Media Center) Hollywood / West HollywoodDecember1325,77261.0Total61,067,741$466.0 The Stabilized Portfolio includes all properties with the exception of the development and Redevelopment Properties currently committed for construction, This section includes management’s statements regarding certain non-GAAP financial measures provided in this supplemental financial report and, with quarter and full year ended December 31, 2025. •Acquisitions: Peninsula submarket of the San Francisco Bay Area, to the stabilized portfolio. The property is 0% leased LocationConstruction Start DateStabilization Date (1)Rentable Square FeetTotal Estimated InvestmentTotal Project % Occupied% Leased1st QuarterNone - $ - - % - %2nd QuarterNone - - - % - %3rd Quarter4400 Bohannon Drive (2)Other Peninsula - San Francisco Bay Area4Q 20223Q 202548,41455 - % - %4690 Executive Drive (2)University Towne Center - San Diego1Q 20223Q 202552,07430 - %47%4th QuarterNone - - - % - %Total100,488$85 - %24% Quarter to Date# of LeasesSquare FeetWeightedAverage LeaseTerm (Mo.)TI/LCPer Sq.Ft. (2)TI/LCPer Sq.Ft. /Year (2)Changes inGAAP Rents (3)Changes in Cash Rents (4)NewRenewalNewRenewalTotal2nd Gen Leasing (5)1311254,596118,551373,14778$43.06$6.63(16.8)%(27.1)%1st Gen / Major Repositioning / In-Process Development & Redevelopment Leasing (5)8 - 394,399 - 394,399174$416.95$28.76Total2111648,995118,551767,546Year to Date# of LeasesSquare FeetWeightedAverage LeaseTerm (Mo.)TI/LCPer Sq.Ft. (2)TI/LCPer Sq.Ft. /Year (2)Changes inGAAP Rents (3)Changes in Cash Rents (4)NewRenewalNewRenewalTotal2nd Gen Leasing (5)5750645,357523,2961,168,65370$59.76$10.24(9.3)%(18.4)%1st Gen / Major Repositioning / In-Process Development & Redevelopment Leasing (5)20 - 611,726 - 611,726158$372.95$28.33Total77501,257,083523,2961,780,379 Three Months Ended9/30/20246/30/20243/31/2024Net Income Available to Common Stockholders$52,378$49,211$49,920Interest expense36,40836,76338,871Depreciation and amortization91,87987,15188,031EBITDA180,665173,125176,822Net income attributable to noncontrolling common units of the Operating Partnership509458502Net income attributable to noncontrolling interests in consolidated property partnerships4,7864,8785,278EBITDAre185,960178,461182,602EBITDAre attributable to noncontrolling interests in consolidated property partnerships(7,485)(7,601)(8,660)Company's Share of EBITDAre178,475170,860173,942Interest income(9,688)(10,084)(13,190)Company's Share of Adjusted EBITDAre$168,787$160,776$160,752 Annualized monthly contractual rents from existing tenants in occupancy, including the impact of the straight-lining of rent escalations and the amortization of Retention rate, inclusive of leases with subtenants where the Company does not expect to experience downtime in occupancy between leases. estimates do not include the impact on the Company’s operating results from any events outside of the Company’s control, as the timing and magnitude of under construction, or in the tenant improvement phase, undeveloped land, and properties classified as held for sale. SubmarketMonth ofAcquisitionNumber of BuildingsRentable Square FeetPurchasePrice (1)1st QuarterNone - - $ - 2nd QuarterNone - - - 3rd Quarter335-345 N. Maple Drive (Maple Plaza)Beverly HillsSeptember1306,366205.34th Quarter3530 & 3550 John Hopkins Court and3535 & 3565 General Atomics Court(Nautilus)Torrey PinesDecember4232,166192.0Total5538,532$397.3 respect to Funds From Operations available to common stockholders and common unitholders (“FFO”), in the Company’s earnings release on February 9, ◦In December, completed the acquisition of the Nautilus Campus, a four-building, approximately 232,000-square-foot life science Represents leases where the landlord is obligated to pay the tenant's proportionate share of certain operating expenses. Three Months EndedYear Ended December 31, 12/31/20259/30/20256/30/20253/31/202512/31/202412/31/202512/31/2024GAAP Net Cash Provided by Operating Activities $109,078$176,568$143,746$136,921$108,237$566,313$541,149Adjustments:Recurring tenant improvements, leasing commissions and capital expenditures(31,724)(36,959)(34,040)(17,378)(33,089)(120,101)(92,583)Depreciation of non-real estate furniture, fixtures and equipment(1,410)(1,407)(1,382)(1,384)(1,585)(5,583)(6,354)Net changes in operating assets and liabilities (1)22,819(31,579)9,245(2,308)42,445(1,823)29,577Noncontrolling interests in consolidated property partnerships’ share of FFO and FAD(6,177)(5,411)(13,201)(6,490)(6,905)(31,279)(25,354)Cash adjustments related to investing and financing activities(2,052)(273)(479)(265)(16)(3,069)(366)Funds Available for Distribution (2)$90,534$100,939$103,889$109,096$109,087$404,458$446,069 Supplemental Financial ReportQ4 2025 The Company calculates Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for Real Estate (“EBITDAre”) in accordance with the 2017 White The Company calculates Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White free rent periods and excluding the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of any such events are not known at the time the Company provides guidance. There can be no assurance that the Company’s actual results will not differ Kilroy Realty Corporation (NYSE: KRC) is a publicly traded real estate investment trust and member of the S&P MidCap 400 Index. The Company owns, develops, acquires, and manages real estate assets consisting primarily of premier office and life science properties in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin. 2026 and the reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and “Our strong performance in the fourth quarter capped off an exceptional year of execution by the entire Kilroy Team,” said Angela Aman, Chief Executive campus, in the Torrey Pines submarket of San Diego, for $192.0 million Capital Recycling Activity Stabilized Portfolio Rollforward (1)Number of BuildingsSquare FeetStabilized Portfolio as of December 31, 202412317,142,721Stabilized Acquisition Properties5538,532Stabilized Development and Redevelopment Properties2100,488Dispositions and Properties Held for Sale(9)(1,495,505)Remeasurements - 5,928Stabilized Portfolio as of December 31, 202512116,292,164 Three Months EndedYear Ended 12/31/202512/31/202412/31/202512/31/2024Net Income Available to Common Stockholders$12,444$59,460$276,121$210,969Net income attributable to noncontrolling common units of the Operating Partnership1205932,6822,062Net income attributable to noncontrolling interests in consolidated property partnerships4,5454,98123,83719,923Net Income17,10965,034302,640232,954Adjustments:Gain on sale of long-lived assets - (5,979) - (5,979)Impairment of real estate assets16,259 - 16,259 - Gains on sales of depreciable operating properties - - (127,038) - Depreciation and amortization92,62389,121354,854356,182Interest expense32,14833,245126,292145,287Interest income(2,205)(4,790)(6,970)(37,752)Other (income) expense(44)493(168)992Leasing costs2,5922,01310,3528,764General and administrative expenses19,48516,97773,10871,074Lease termination fees (2)(1,541)(2,469)(13,110)(7,066)Net Operating Income (3)176,426193,645736,219764,456Other (4)7892312417Deferred settlement and restoration income - 1,857 - - Amortization of net below market rents(624)(846)(3,079)(3,521)Straight-line rents, net2,3583,66711,6289,184Amortization of deferred revenue related to tenant-funded tenant improvements(3,547)(4,065)(14,644)(19,138)Deferred income and lease incentives, net (5)(257)(1,757)(2,569)(9,932)Cash Net Operating Income (3)174,434192,593727,867741,466Non-Same Property Net Cash Operating Income(7,738)(12,979)(45,351)(52,169)Same Property Cash Net Operating Income (3)$166,696$179,614$682,516$689,297 Paper on EBITDAre approved by the Board of Governors of Nareit. Management believes that consolidated earnings before interest expense, tax expense, 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 Annualized Base Rent (2)Square Feet (3) above/below market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue. Additionally, the underlying Same Property Portfolio: materially from these estimates. results of operations. Officer. “We captured growing tenant demand for high quality, well-amenitized office and life science projects across virtually all of our submarkets, made •In addition to the capital recycling activities highlighted above, the following transactions occurred during the year: 01Corporate Data & Financial Highlights - Company Background - Financial Highlights - Consolidated Balance Sheets - Consolidated Statements of Operations - Funds From Operations & Funds Available for Distribution - Supplemental Income Statement Detail - Net Operating Income - Same Property Net Operating Income Analysis (Cash Basis) - EBITDA, EBITDAre, and Adjusted EBITDAre
Interest Coverage Ratio:
depreciation and amortization, gain/loss on early extinguishment of debt, gains and losses on the sale of depreciable real estate and non-real estate assets, net depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and leases contain various expense structures including full service gross, modified gross and triple net. Amounts represent percentage of total portfolio substantial progress on leasing our in-process redevelopment and development projects, and capitalized on a resurgence of institutional investor interest in Dividend ◦Dispositions / Assets Under Contract: Three Months Ended December 31,Year Ended December 31,2025202420252024Cash Operating Revenues:Base rent$25,767$26,591$105,404$104,093Tenant reimbursements3,8213,84515,67014,256Other revenues (2)812472,302(5,171)Settlement and restoration fee income - - 212459Other property income (3)5396772,3882,530Total cash operating revenues30,20831,360125,976116,167Cash Operating Expenses:Property expenses 7,2007,09727,25926,007Real estate taxes2,2922,2239,0358,854Total cash operating expenses9,4929,32036,29434,861Cash Net Operating Income (4)(5)(6)20,71622,04089,68281,306Deferred income and lease incentives, net3713711,4833,846Amortization of tenant-funded improvements4384571,8542,257Straight-line rents, net(373)359(2,167)(177)Net Operating Income (4)(5)21,15223,22790,85287,232Lease termination fees (5)13413511,126546Other expense - - (4)(6)General & administrative expenses - (9)(10)(23)Leasing costs(25)(7)(116)(64)Depreciation and amortization(7,977)(7,878)(32,576)(31,456)Net Income$13,284$15,468$69,272$56,229 The Same Property Portfolio includes all properties owned and included in the Stabilized Portfolio for two comparable reporting periods, i.e., owned and Calculated as EBITDAre divided by gross interest expense (excluding amortization of deferred debt costs and debt premiums/discounts). income attributable to noncontrolling interests, preferred dividends and distributions, original issuance costs of redeemed preferred stock and preferred units, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable annualized contractual base rental revenue. Conference Call and Audio Webcast Net Operating Income: West Coast commercial real estate assets in order to refine and enhance our portfolio. As we look ahead to 2026, we are encouraged by the continued •The Board declared and paid a regular quarterly cash dividend on its common stock of $0.54 per share, equivalent to an annual rate of ▪In April, entered into an agreement, subject to a non-refundable deposit, to sell a portion of the land at Santa Fe Summit for included in the Stabilized Portfolio as of January 1, 2024 and still owned and included in the Stabilized Portfolio as of December 31, 2025. It includes the 02Portfolio Data - Stabilized Portfolio Occupancy Overview by Region - Leases Executed - Stabilized Portfolio Capital Expenditures - Stabilized Portfolio Lease Expirations - Top 20 Tenants - Tenant Industry Diversification - 2025 Acquisitions - 2025 Dispositions, Held for Sale, and Assets Under Contract - Consolidated Ventures (Noncontrolling Property Partnerships) impairment losses (EBITDAre) is a useful supplemental measure of the Company’s operating performance. When considered with other GAAP measures and FFO, real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of The Company’s management will discuss fourth quarter results and the current business environment during the Company’s February 10, 2026 earnings momentum we are experiencing across our platform and believe we are well positioned for continued growth and evolution.” $2.16 per share. The dividend was paid on January 7, 2026 to stockholders of record on December 31, 2025 (the ex-dividend date) $38.0 million in gross sales proceeds. The transaction represents approximately five acres of the 22-acre site and is residential portfolio, which consists of the 200-unit Columbia Square Living property and the 193-unit Jardine property in Hollywood, California submarket Major Repositioning: management believes EBITDAre gives the investment community a more complete understanding of the Company’s consolidated operating results, including the unconsolidated affiliates to FFO. The calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes Capital Expenditures: conference call. The call will begin at 10:00 a.m. Pacific Time and last approximately one hour. To participate and obtain conference call dial-in details, Management believes that Net Operating Income (“NOI”) is a useful supplemental measure of the Company’s operating performance. The Company’s NOI metrics anticipated to close upon the receipt of entitlements, which is expected to occur in 2026 and 608 residential units at the Company’s One Paseo mixed-use property in the Del Mar, California submarket. Excludes undeveloped land, development impact of general and administrative expenses and acquisition-related expenses, before the impact of investing and financing transactions and facilitates the depreciation of the related tenant improvement assets. The Company also adds back net income attributable to noncontrolling common units of the Operating Space for which significant non-recurring capital expenditures are incurred to reposition and is expected to result in additional revenue generated when re- register by using the following link, https://www.netroadshow.com/events/login/LE9zwo4AF0rVUaxBU0IDSIu6q6M8vLBYYMS. Those interested in listening are defined as follows: Fourth Quarter Highlights Full Year Highlights ▪In June, completed the sale of 501 Santa Monica Boulevard, an approximately 79,000-square-foot operating property in Expenditures for capital improvements, tenant improvements costs (excluding tenant-funded tenant improvements), and leasing commissions. and Redevelopment Properties currently committed for construction, under construction, or in the tenant improvement phase, and properties classified as ________________________ comparisons with competitors. Management also believes it is appropriate to present EBITDAre as it is used in several of the Company’s financial covenants for both Partnership because it reports FFO attributable to common stockholders and common unitholders. leased. Capital improvements for this space are not subtracted in the calculation of FAD. Tenant improvement and leasing commissions for this space are via the Internet can access the conference call at https://events.q4inc.com/attendee/267439370. It may be necessary to download audio software to hear the (1)Includes 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. West Los Angeles for gross sales proceeds of $40.0 million held for sale. 04Debt & Capitalization Data - Capital Structure - Debt Maturities - Debt Covenants & Leverage Ratios its secured and unsecured debt. However, EBITDAre should not be viewed as an alternative measure of the Company’s operating performance since it excludes Stabilized Office & Life Science Portfolio included in 2nd Gen Capital Expenditures. (2)Represents the earlier of the date the project achieves 95% occupancy or one year from substantial completion of base building components. For multi-phase projects, interest and carry cost capitalization may cease Financial Results conference call.
- Net Operating Income - Consolidated operating revenues comprised of rental income and other property income, excluding lease termination fees, less Financial Results ▪In July, entered into an agreement, subject to a non-refundable deposit, for the sale of 1633 26th Street for $41.0 million in Effective Rate: financing costs as well as depreciation and amortization costs which are significant economic costs that could materially impact the Company’s results of operations 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 and recommence driven by various factors, including tenant improvement construction, other tenant related timing, or changes in project scope. For Redevelopment Projects, redevelopment may occur in phases based at December 31, 2025
- Revenues of $272.2 million for the quarter ended December 31, 2025, as compared to $286.4 million for the quarter ended December 31, 03Development - Stabilized Development & Redevelopment Projects - In-Process Development & Redevelopment Projects - Future Development Pipeline consolidated property and related expenses (property expenses, real estate taxes, and ground leases). •Revenues of $1,112.7 million for the year ended December 31, 2025, as compared to $1,135.6 million for the year ended December 31, gross sales proceeds. The transaction is anticipated to close upon the receipt of entitlements, which is expected to occur in Same Property Portfolio RollforwardNumber of BuildingsSquare FeetSame Property Portfolio as of December 31, 202411916,209,399Stabilized Development and Redevelopment Properties Added (1)2829,591Dispositions and Properties Held for Sale(9)(1,495,505)Remeasurements - 5,928Same Property Portfolio as of December 31, 202511215,549,413Stabilized Development and Redevelopment Properties Excluded from Same Property2100,488Stabilized Acquisition Properties Excluded from Same Property7642,263Stabilized Portfolio as of December 31, 202512116,292,164 on existing lease expiration dates and timing of the tenant improvement construction. and liquidity. Other REITs may use different methodologies for calculating EBITDAre and, accordingly, the Company’s EBITDAre calculation may not be comparable 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 Represents the Stated Rate, including the impact of the unused facility fee and the amortization of any premiums/discounts and debt issuance costs. 05Non-GAAP Supplemental Measures Net Income Payout Ratio: ________________________ (3)Represents costs incurred as of December 31, 2025, excluding accrued liabilities recorded in accordance with GAAP. 2024
- Cash Net Operating Income - NOI adjusted for certain non-cash amounts (e.g. straight-line rents, net, amortization of deferred revenue related to tenant- 2024 2026 (1) Excludes our three residential properties measured in units. 121 16.3 to other REITs. The Company’s Share of EBITDAre is EBITDAre less amounts attributable to noncontrolling interests in consolidated property partnerships. The and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of 06Definitions &Reconciliations Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted •Net income available to common stockholders of $12.4 million, or $0.10 per diluted share, for the quarter ended December 31, 2025, as funded tenant improvements, deferred income and lease incentives, net, deferred settlement and restoration fee income, and the amortization of net below •Net income available to common stockholders of $276.1 million, or $2.32 per diluted share, for the year ended December 31, 2025, as ▪In September, completed the sale of a four-building, approximately 663,000-square-foot campus in Silicon Valley for gross Company’s Share of Adjusted EBITDAre is the Company’s share of EBITDAre less interest income. REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, Estimated Stabilization Date (Development): Full Year 2026 RangeLow EndHigh End$ and shares/units in thousands, except per share/unit amountsNet income available to common stockholders per share - diluted$0.59$0.79Weighted average common shares outstanding - diluted (6)120,100120,100Net income available to common stockholders$70,800$95,040Adjustments:Net income attributable to noncontrolling common units of the Operating Partnership300300Net income attributable to noncontrolling interests in consolidated property partnerships17,00017,000Depreciation and amortization of real estate assets342,000342,000Gain on sale of depreciable operating property(8,200)(8,200)Funds From Operations attributable to noncontrolling interests in consolidated property partnerships(28,000)(28,000)Funds From Operations (1)$393,900$418,140Weighted average common shares/units outstanding - diluted (7)121,200121,200Nareit Funds From Operations per common share/unit - diluted (1)$3.25$3.45 stock unitholders) divided by net income. compared to $59.5 million, or $0.50 per diluted share, for the quarter ended December 31, 2024 Stated Rate: market rents), as well as the provision for bad debts related to these certain non-cash adjustments. compared to $211.0 million, or $1.77 per diluted share, for the year ended December 31, 2024 sales proceeds of $365.0 million buildings million square feet ________________________ the Company’s FFO may not be comparable to all other REITs. ________________________ Management’s estimation of the earlier of stabilized occupancy (95%) or one year from the date of the cessation of major base building construction NET DEBT TO COMPANY'S SHARE OF EBITDAre RATIOS12/31/20259/30/20256/30/20253/31/202512/31/2024Total principal amount of debt$4,625,442$4,627,026$4,628,595$4,630,149$4,631,688Cash and cash equivalents(179,316)(372,416)(193,129)(146,711)(165,690)Net debt$4,446,126$4,254,610$4,435,466$4,483,438$4,465,998Trailing 12-months Company's share of EBITDAre (3)(4)$637,314$660,337$674,686$677,632$696,855Trailing 12-months Company's share of Adjusted EBITDAre (3)(4)$630,344$650,782$658,562$651,936$659,103Net debt to Company's share of EBITDAre Ratio7.0x6.4x6.6x6.6x6.4xNet debt to Company's share of Adjusted EBITDAre Ratio7.1x6.5x6.7x6.9x6.8x •Funds from operations (“FFO”) of $117.2 million, or $0.97 per diluted share, for the quarter ended December 31, 2025, as compared to
- Same Property Cash Net Operating Income - Cash NOI for all of the properties that were owned and included in the Company’s Stabilized Portfolio for (1)Represents gross sales price before the impact of commissions, closing costs, and purchase price credits. •Funds from operations (“FFO”) of $505.9 million, or $4.20 per diluted share, for the year ended December 31, 2025, as compared to $551.6 ◦Acquisitions: The rate at which interest expense is recorded per the respective loan documents. ________________________ Net Debt to Company's Share of EBITDAre Ratio and Net Debt to Company's Share of Adjusted EBITDAre Ratio: (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, rents received activities for office, life science, and retail properties, and the date of substantial completion for residential properties. Equity Research CoverageBarclaysBrendan Lynch(212) 526-9428BofA SecuritiesJana Galan(646) 855-5042BMO Capital Markets Corp.John P. Kim(212) 885-4115BTIGThomas Catherwood(212) 738-6140Citigroup Investment ResearchSeth Bergey(212) 816-2066Deutsche Bank Securities, Inc. Peter Abramowitz(212) 250-9504Evercore ISISteve Sakwa(212) 446-9462Goldman Sachs & Co. LLCCaitlin Burrows(212) 902-4736Green Street AdvisorsDylan Burzinski(949) 640-8780Jefferies LLCJoe Dickstein(212) 778-8771J.P. MorganAnthony Paolone(212) 622-6682Keybanc Capital MarketsUpal Rana(917) 368-2316Mizuho Securities USA LLCVikram Malhotra(212) 282-3827RBC Capital MarketsMike Carroll(440) 715-2649ScotiabankNicholas Yulico(212) 225-6904Wells FargoBlaine Heck(410) 662-2556Wolfe ResearchAlly Yaseen(646) 582-9253Kilroy 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. Net Leases Types: (1)Refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. $144.9 million, or $1.20 per diluted share, for the quarter ended December 31, 2024 in advance, and tenant security deposits. two comparable reporting periods. million, or $4.59 per diluted share, for the year ended December 31, 2024 ▪In September, completed the acquisition of Maple Plaza, an approximately 306,000-square-foot office property in the 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
| 81.6% 83.8% |
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| (2)Refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. Operating Properties Held for Sale and Development Pipeline Under ContractSubmarketNumber of BuildingsRentable Square Feet / Acreage Under ContractAnticipated SalesPrice (1)Operating Properties Held for SaleKilroy Sabre Springs (2)I-15 Corridor3427,764$124.5Total$124.5Development Pipeline - Under Contract (3) (4)1633 26th StreetWest Los AngelesN/A2 acres$41.0Santa Fe Summit - PA156 CorridorN/A5 acres38.0Santa Fe Summit - PA256 CorridorN/A17 acres86.0Total$165.0Total Anticipated Proceeds$289.5 ________________________ time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of Beverly Hills submarket of Los Angeles, for $205.3 million Represents leases where the tenant is obligated to pay a share of certain operating expenses. Straight-Line Rents, Net: Management believes that the ratios of the principal balance of debt, less cash and cash equivalents and certificates of deposit, divided by the Company’s share of ________________________ Where Innovation Works | |
| ________________________ FAD Payout Ratio: (1)Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. | |
| Leasing and Occupancy Commencing January 1, 2025, the Company began excluding lease termination fees from the calculation of rental revenue for the Company’s NOI metrics as it is operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real (1)Excludes acquisition-related costs and purchase price credits. Leasing and Occupancy ________________________ EBITDAre as well as the Company's share of Adjusted EBITDAre are useful supplemental measures of the level of borrowed capital being used to increase the occupied leased | |
| (1)Refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. Represents the straight-line rent income recognized during the period offset by cash received during the period that was applied to deferred rents receivable | |
| ________________________ Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted •Stabilized Portfolio was 81.6% occupied and 83.8% leased at December 31, 2025, representing 220 basis points of leases signed that have non-recurring in nature and its exclusion will provide a measure that the Company believes is more indicative of its operating performance. Other real estate (2)Commencing in January 1, 2025, the Company began adjusting for taxes, which are included in Other income (expense) on the Company’s Consolidated Statement of Operations. EBITDA, EBITDAre, and Adjusted estate assets, management believes that FFO along with the required GAAP presentations provides a more complete measurement of the Company’s performance •During the year, signed approximately 2,051,000 square feet of leases, the Company’s highest annual leasing volume since 2019 Balance Sheet / Liquidity potential return of the Company’s real estate investments and proxies for a measure management believes is used by many lenders and rating agencies to evaluate Net Operating Income Margin: •Represents a component of Cash Net Operating Income. | |
| (1)Project scope, including the estimated developable square feet or number of residential units, could change materially from estimates provided due to one or more of the following: significant changes in the economy, Retention Rate Calculations (5) (6)Quarter to DateYear to DateRetention Rate30.6%34.0%Retention Rate, including subtenants41.2%39.6% balances for terminated leases and the provision for bad debts recorded for deferred rent receivable balances. EBITDAre for the periods ending December 31, 2024 and September 30, 2024, have not been conformed to our new presentation to maintain consistency with previously reported financial ratios. | |
| (1)Primarily comprised of residential income, contractual parking income, and revenues deemed uncollectible. investment trusts (“REITs”) may use different methodologies for calculating NOI, Cash NOI, and Same Property Cash NOI, and accordingly, the Company’s NOI stock unitholders) divided by FAD. not commenced relative to its competitors and a more appropriate basis on which to make decisions involving operating, financing, and investing activities than the required GAAP ◦Leasing activity was comprised of 1,108,000 square feet of new leasing on previously vacant space, 233,000 square feet of new the Company’s ability to repay and service its debt obligations. The Company believes the ratios are beneficial disclosure to investors as supplemental means of market conditions, tenant requirements and demands, construction costs, new supply, regulatory and entitlement processes, or project design. •In August, completed a public offering of $400.0 million of 5.875% unsecured senior notes due October 2035 | |
| Calculated as Net Operating Income divided by total revenues. ________________________ Average Residential OccupancyQuarter to DateYear to DateRESIDENTIAL PROPERTIESCampusSubmarket (1)Total No. of Units12/31/20259/30/202512/31/2025LOS ANGELES, CALIFORNIA1550 N. El Centro AvenueColumbia Square LivingHollywood20094.6%92.9%95.2%6390 De Longpre AvenueJardineHollywood19393.7%91.0%93.0%SAN DIEGO, CALIFORNIA3200 Paseo Village WayOne Paseo LivingDel Mar60894.0%94.1%94.0%Total Residential Properties1,00194.1%93.2%94.1% (2)Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. | |
| (2)Represents costs incurred as of December 31, 2025, net of municipal bonds proceeds received related to public infrastructure improvements, and excluding accrued liabilities recorded in accordance with GAAP. metrics may not be comparable to other REITs. presentations alone would provide. •During the quarter, signed approximately 827,000 square feet of leases, the Company’s strongest fourth-quarter leasing performance in six evaluating its ability to meet obligations senior to those of the equity holders. Other REITs may use different methodologies for calculating these ratios and, leasing on currently occupied space, and 710,000 square feet of renewal leasing •In September, fully redeemed $400.0 million of 4.375% unsecured senior notes due October 2025 | |
| (1)Represents the earlier of the date the project achieves 95% occupancy or one year from substantial completion of base building components. (3)Primarily comprised of transient parking income. Tenant Improvement Phase: (3)Subject to a signed agreements and non-refundable deposits as of the date of this filing. Refer to page 24 “2025 Dispositions, Held for Sale, and Assets Under Contract” for additional information. | |
| First Generation ("1st Gen"): (2)Redevelopment Project. years accordingly, the Company’s Net Debt to Company’s Share of EBITDAre Ratio and Net Debt to Company's Share of Adjusted EBITDAre Ratio may not be ▪Leasing activity during the year included 270,000 square feet of short-term leasing, primarily comprised of 187,000 square Residential Portfolio | |
- As of December 31, 2025, the Company had approximately $1.3 billion of total liquidity, comprised of approximately $0.2 billion of cash and ________________________ ________________________ Percentage Leased Represents projects that have reached cold shell condition and are ready for tenant improvements, which may require additional major base building The Company uses these NOI metrics to evaluate its operating performance on a portfolio basis since the NOI metrics allow the Company to evaluate the impact 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 ◦Leasing activity was comprised of 547,000 square feet of new leasing on previously vacant space, 148,000 square feet of new comparable to other REITs. (1) 9514 Towne Centre Drive and Indeed Tower were added to the Same Property Portfolio in 2025. feet of short-term renewal leasing (1)Same Property Portfolio is defined as all properties owned and included in the Stabilized Portfolio as of January 1, 2024 and still owned and included in the Stabilized Portfolio as of December 31, 2025. Same Property cash equivalents and approximately $1.1 billion available under the fully undrawn unsecured revolving credit facility Vacant space at acquisition properties and space not yet leased at recently completed development and Redevelopment Properties that have been added to # of Expiring Leases6967706067641919181718% of Total Leased Sq. Ft.8.0%7.7%9.4%10.8%13.1%18.5%9.5%8.9%5.2%4.9%4.0%Annualized Base Rent (“ABR”) (3)$49,033$37,598$77,264$74,160$103,707$154,798$83,313$69,117$45,643$36,991$32,984% of Total ABR6.4%4.9%10.1%9.7%13.6%20.2%10.9%9.0%6.0%4.8%4.4%ABR per Sq. Ft.$46.72$37.19$62.08$52.20$60.34$63.51$66.48$59.38$66.79$57.98$62.73 Represents Percentage Occupied, adjusted for leases executed but have not yet achieved revenue recognition. ________________________ modifications before being placed in service. 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 the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties, which are significant economic Portfolio includes 100% of consolidated property partnerships as well as the Company’s three residential properties. Excludes properties classified as held for sale. Refer to pages 39-42 “Definitions Included in leasing on currently occupied space, and 132,000 square feet of renewal leasing
- GAAP and cash rents on leases signed during the year decreased 9.3% and 18.4%, respectively, from prior levels on Second Generation the Stabilized Portfolio. Capital expenditures for first generation space do not include expenditures for in-process development and Redevelopment Projects Supplemental” for additional information. (1)Includes 100% of consolidated property partnerships. Excludes leases with a lease term of less than one year (i.e. short-term leases). During the three months and year ended December 31, 2025, the Company signed Second Generation ("2nd Gen"): believes that its NOI metrics provide useful information to the investment community about the Company’s financial and operating performance when compared to costs and could materially impact the Company’s results from operations. 1,001 94.1%
- At Kilroy Oyster Point Phase 2 (“KOP 2”), signed 316,000 square feet of new leases. See “Kilroy Oyster Point Phase 2” leasing, excluding short-term leasing Sustainability and Corporate Social Responsibility Highlights and space that was vacant when the property was acquired. These costs are not subtracted in the calculation of FAD. (2)For the years ended December 31, 2025 and 2024, Same Property Cash Net Operating Income from our residential portfolio represented 4.1% and 3.6% of total Same Property Cash Net Operating Income, 59,670 and 270,431 square feet of short-term leases, respectively. other REITs since NOI, Cash NOI, and Same Property Cash NOI are generally recognized as standard measures of performance in the real estate industry. Percentage Occupied Total Debt respectively. (2)Includes tenant improvements and third-party leasing commissions, and excludes tenant-funded tenant improvements and indirect leasing costs. Space at properties in the Stabilized Portfolio for which capital expenditures are generally recurring in nature or relate to space previously occupied. section below for additional details ________________________ •Achieved carbon neutral operations across the portfolio for the sixth consecutive year (3)Calculated as the average of the daily ending occupancy percentages. (3)Calculated as the change between the expiring GAAP rent and the new GAAP rent for the same space. When necessary, lease structures are modified (adjusted for NNN) for comparability. Space that was vacant when Funds Available for Distribution: (1)Refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. residential units average occupancy during 4Q25 Represents economic occupancy for space that has achieved revenue recognition for the associated lease agreements. Excludes leases with a lease term of less than one year. Capital expenditures for space that was vacant when the property was acquired and tenant ▪Leasing activity during the quarter included 60,000 square feet of short-term leasing Represents the gross aggregate principal amount due as of December 31, 2025. Excludes unamortized deferred financing costs for the unsecured revolving ________________________ Kilroy Oyster Point Phase 2 •Over six megawatts of installed onsite solar capacity generating clean electricity Fixed Charge Coverage Ratio - Company’s Share of EBITDAre: (4)Primarily comprised of residential income, contractual parking income, and revenues deemed uncollectible. the property was acquired is excluded from these calculations. (2)All covenant ratio titles utilize terms and are calculated as defined in the respective debt and credit agreements. ________________________ Because the Company’s NOI metrics exclude lease termination fees, leasing costs, general and administrative expenses, interest expense, depreciation and improvement and leasing commission capital expenditures for projects classified as Major Repositioning are captured in 2nd Gen Capital Expenditures. •GAAP and cash rents on leases signed during the quarter decreased 16.8% and 27.1%, respectively, from prior levels on Second credit and term loan facilities, unsecured senior notes, and secured debt, and unamortized discounts for the unsecured senior notes. (5)Primarily comprised of transient parking income. (4)Calculated as the change between the expiring cash rent and the new cash rent for the same space. When necessary, lease structures are modified (adjusted for NNN) for comparability. Space that was vacant when •Listed on U.S. EPA’s National Top 100 list of largest green power users •As highlighted above, signed approximately 316,000 square feet of leases during the fourth quarter for a total of 384,000 square feet of (1)Refer to pages 39-42 “Definitions Included in Supplemental” for additional information. (3)Calculated as the sum of the Company's share of EBITDAre and Adjusted EBITDAre for the trailing four quarters. Calculated as Company’s Share of EBITDAre divided by gross interest expense (excluding amortization of deferred debt costs and debt discounts/ (1)Based on the North American Industry Classification System, as of December 31, 2025. amortization, other income and expenses, impairment of real estate assets, and gains and losses, they provide performance measures that, when compared year Management believes that Funds Available for Distribution available to common stockholders and common unitholders (“FAD”) is a useful supplemental measure of (6)For Same Property Cash Net Operating Income, restoration and settlement fee income is recognized in the period in which it is received, which may not correspond with the timing of GAAP revenue recognition. Tenant the property was acquired is excluded from these calculations. (2)Includes 100% of consolidated property partnerships. (4)Refer to page 44 for reconciliations of GAAP Net Income Available to Common Stockholders to EBITDAre for the three months ended September 30, 2024, June 30, 2024, and March 31, 2024. Redevelopment Properties/Projects: Generation leasing, excluding short-term leasing •Earned GRESB 5-Star Designation for Standing Assets leases signed at KOP 2 during the year, exceeding the Company’s previously communicated goal of 100,000 square feet of lease (2)Includes 100% of consolidated property partnerships. prepayments are recognized in the applicable lease billing period. premiums) and current year accrued preferred dividends. (5)Refer to pages 39-42 “Definitions Included in Supplemental” for additional information. over year, reflects the consolidated revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from (3)Represents significant non-recurring capital expenditures for repositioning space that is expected to result in additional revenue generated when the space is re-leased. ________________________ the Company’s liquidity. The Company computes FAD by adjusting FFO for recurring tenant improvements, leasing commissions, and capital expenditures, (3)Based on occupied square footage in the Stabilized Portfolio as of December 31, 2025, excluding month-to-month and intercompany leases. •Earned GRESB Regional Sector Leader in the Americas in Technology/Life Science for Development ◦Leasing spreads during the quarter were negatively impacted by: Total Portfolio: ________________________ executions. The project is now 3% occupied and 44% leased (7)Refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. Refer to page 43 for a reconciliation of GAAP Net Income Available to Common (6)Excludes square footage of short-term leases. Properties or projects for which the Company expects to spend significant development and construction costs pursuant to a formal plan to change its use. Total Debt (3)$401,317$449,125$400,000$475,000$500,000$350,000$425,000$450,000$375,000$400,000$400,000Weighted Average Stated Rate4.06%4.28%4.75%4.12%3.05%4.27%2.50%2.65%5.90%5.88%6.25%% of Total9%9%9%10%11%8%9%9%8%9%9% ________________________ (1)Commencing January 1, 2025, the Company began excluding lease termination fees from Net Operating Income and Cash Net Operating Income. Lease termination fees are presented here on a GAAP basis and Net trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. Additionally, because amortization of deferred revenue related to tenant-funded tenant improvements, straight-line rents, net, amortization of net above (below) market rents for acquisition Stockholders to Same Property Cash Net Operating Income. Note: Refer to pages 39-42 “Definitions Included in Supplemental” for definitions of commonly used terms. Refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. •Achieved the most ENERGY STAR NextGen certifications of any building owner since the launch of the new certification program in 2024
- A new lease signed on a space recently vacated due to a tenant bankruptcy Operating Income and Cash Net Operating Income as presented have been conformed to the Company’s new definition. (1)Reflects the KRC ownership percentage at time of agreement. Actual percentage may vary depending on cash flows or promote structure. ◦Leasing activity at KOP 2 during the fourth quarter was comprised of the following transactions: ________________________ The Total Portfolio includes all properties, with the exception of the development and Redevelopment Properties currently committed for construction, under ________________________ Same Property Cash NOI excludes the change in Cash NOI from developed, redeveloped, acquired and disposed of and held for sale properties, it highlights Investor Relations12200 W. Olympic Blvd., Suite 200Los Angeles, CA 90064(310) 481-8400Web: www.kilroyrealty.comE-mail: investorrelations@kilroyrealty.comDoug S. BettisworthVP, Corporate Finance Fixed Charge Coverage Ratio - Net Income: (1)Commencing January 1, 2025, the Company began excluding lease termination fees from Net Operating Income. Lease termination fees are presented here on a GAAP basis and Net Operating Income as presented has been (8)Commencing January 1, 2025, the Company began excluding lease termination fees from Same Property Cash Net Operating Income. Same Property Cash Net Operating Income as presented has been conformed to properties, non-cash amortization of deferred financing costs and net debt discounts and premiums, non-cash amortization of share-based compensation awards Average Occupancy (3)Quarter-to-DateYear-to-Date80.9%80.9% (2)Primarily comprised of residential income, contractual parking income, and revenues deemed uncollectible. (2)Primarily comprised of contractual parking income and revenues deemed uncollectible. •Achieved over 1.6 million square feet of new ENERGY STAR certifications across the portfolio, bringing the total to over 10.9 million square ________________________ ________________________ ▪A renewal signed to preserve near-term income on a single-tenant building while the Company evaluates alternative uses (1)Includes subsidiaries of the tenant listed. Excludes tenants at properties classified as held for sale. (1)The unsecured revolving credit facility and unsecured term loan facility's interest rates were calculated using the Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment of 0.10% and a margin of 1.100% ▪The University of California, San Francisco executed a full-building lease spanning approximately 280,000 square feet and conformed to the Company’s new definition. Rentable Square Feet: our new definition. construction, or in the tenant improvement phase, and undeveloped land. operating trends on a cash basis such as occupancy levels, rental rates and operating costs on properties. (3)Primarily comprised of transient parking income. (3)Primarily comprised of transient parking income. ________________________ and adjustments for executive retirement obligations, lease related adjustments, gains and losses on sales of non-real estate assets, and amounts attributable to (1)Based upon the Same Store Portfolio as of December 31, 2025, which was comprised of 112 properties. (1)The Company defines the Del Mar submarket as Del Mar, Del Mar Heights, and Carmel Valley. Calculated as net income, divided by gross interest expense (excluding amortization of deferred debt costs and debt discounts/premiums) and current year feet of ENERGY STAR certified space (2)The information presented is based upon Annualized Base Rent as of December 31, 2025 and includes 100% of consolidated property partnerships. The Company calculates Annualized Base Rent as the annualized and 1.200%, respectively, based on the Company’s credit rating, as of December 31, 2025. All other stated rates represent fixed interest rates. ________________________ (2)Primarily represents compensation costs capitalized to construction and development projects. ________________________ ________________________ ◦Excluding these two leases, GAAP and cash rents on leases signed during the quarter would have increased 16.2% and decreased is expected to commence occupancy in the fourth quarter of 2027 (4)Refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. Refer to page 43 for a reconciliation of GAAP Net Income Available to Common (4)Refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. * Excluded from the Same Property portfolio. (2)Commencing January 1, 2025, the Company began excluding lease termination fees from Net Operating Income, Cash Net Operating Income, and Same Property Cash Net Operating Income. Lease termination fees monthly contractual rents from existing tenants in occupancy, including the impact of straight-lined rent escalations and the amortization of free rent periods. Refer to pages 39-42 “Definitions Included in Supplemental” noncontrolling interests in consolidated property partnerships. FAD provides an additional perspective on the Company’s ability to fund cash needs and make Reflects the latest Building Owners and Managers Association (“BOMA”) measurement. All occupied and leased percentages presented throughout this (2)Includes the impact of an unused facility fee, amortization of deferred financing costs, and amortization of premiums/discounts. (3)Represents incidental property operating and carry costs capitalized to development projects. (1)Refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. Reported per common share/unit amounts are attributable to common stockholders, * Excluded from the Same Property portfolio. ________________________ •Became a Fitwel Champion+ company accrued preferred dividends. Total PortfolioNumber of BuildingsSquare FeetStabilized Portfolio12116,292,164Properties Held for Sale3427,764Total Portfolio as of December 31, 202512416,719,928 Stockholders to Cash Net Operating Income and Net Operating Income. (1)Represents all in-place leases as of December 31, 2025, excluding intercompany leases. Refer to pages 39-42 “Definitions Included in Supplemental” for additional information. (5)Commencing January 1, 2025, the Company began excluding lease termination fees from Net Operating Income and Cash Net Operating Income. Net Operating Income and Cash Net Operating Income as presented (1)Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. 2.6%, respectively are presented here on a GAAP basis and Net Operating Income, Cash Net Operating Income, and Same Property Cash Net Operating Income as presented have been conformed to the Company’s new definition.
- A new genomic sequencing foundry signed an approximately 20,000-square-foot lease in a space designed and built as part for additional information. (3)The maturity of the unsecured revolving credit facility does not assume the exercise of the Company's two six-month extension options. (4)Refer to page 43 for a reconciliation of GAAP Net Income Available to Common Stockholders to Net Operating Income. The Company’s NOI metrics should not be viewed as alternative measures of the Company’s financial performance since they do not reflect general and common unitholders, and restricted stock unitholders. (1)Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. 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 (1)Excludes the impact of commissions, closing costs, and purchase price credits. report are calculated based on rentable square feet at the end of the period(s) presented. ________________________ ________________________ (5)Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. (2)Adjusting for leases that have been backfilled or renewed by a subtenant as of December 31, 2025 but not yet commenced, the 2026 and 2027 expirations would be reduced by 139,266 and 5,875 square feet, has been conformed to our new definition. Cash Lease Termination Fees for the year ended December 31, 2024 were $2.5 million. •Maintained Green Lease Leader Gold status (2)The Company defines the Del Mar submarket as Del Mar, Del Mar Heights, and Carmel Valley. (3)Refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. ________________________ (5)Refer to pages 10 and 44 for reconciliations of GAAP Net Income Available to Common Stockholders to EBITDAre, Company’s Share of EBITDAre, and Company’s Share of Adjusted EBITDAre. (3)Significant lease expirations include those greater than 25,000 rentable square feet. (4)The maturity of the unsecured term loan facility assumes the exercise of one remaining 12-month extension option, at the Company’s election. (2)Calculated based on weighted average shares outstanding including participating share-based awards and assuming the exchange of all common limited partnership units outstanding. Diluted amounts per share also of the Company’s spec suite initiative. The company commenced occupancy upon lease execution in the fourth quarter of (2)Kilroy Sabre Springs includes the following buildings: 13480, 13500, and 13520 Evening Creek Drive North, San Diego, CA.The sale of this property closed in January 2026. ________________________ administrative expenses, leasing costs, lease termination fees, interest expense, depreciation and amortization costs, other nonproperty income and losses and the (1)For additional information, please refer to pages 35-37 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures. (6)Includes other non-cash amounts primarily related to property expenses and ground rent expense. respectively. (6)Commencing January 1, 2025, the Company began including additional amounts in Cash Net Operating Income primarily related to revenues deemed uncollectible. The three months and year ended December 31, (1)Commencing January 1, 2025, the Company began presenting a new line item, Other income (expense), which includes tax expenses, acquisition and disposition expenses, and income or expenses related to leasing costs. Management also believes that FAD provides useful information to the investment community about the Company’s financial position as compared to ________________________ (4)Includes other non-cash amounts primarily related to property expenses and ground rent expense. (6)Refer to page 6 for reconciliations of GAAP Net Income Available to Common Stockholders to Funds From Operations and Funds Available for Distribution and page 45 for a reconciliation of GAAP Net Cash Provided by Operating (4)The 2027 lease expiration represents 31,840 rentable square feet that expires on June 30, 2027. (5)Green bond. * Excluded from the Same Property portfolio. include non-participating share-based awards and the dilutive impact of contingently issuable shares. FFO Payout Ratio: (3)Subject to a signed agreement and non-refundable deposit as of the date of this filing. (1)Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. Excludes residential properties and properties classified as held for sale. Refer to pages 39-42 “Definitions (2)NOI from Development Properties is primarily comprised of carry costs associated with Company’s KOP 2 and Flower Mart projects. Guidance assumes the continued capitalization of the Company’s Flower Mart project (7)Commencing January 1, 2025, the Company began presenting a new line item, Other income (expense), which includes tax expenses, acquisition and disposition expenses, and income or expenses related to (3)Includes 100% of consolidated property partnerships. 2024, includes $0.1 million and $2.0 million, respectively, related to these amounts. Capital Recycling Activity environmental and sustainability initiatives, all of which were previously included in General and administrative expenses. Historical amounts for General and administrative expenses and Other income (expense) have (5)Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. 2025 Activities to Funds Available for Distribution. level of capital expenditures necessary to maintain the operating performance of the Company’s properties, or trends in development and construction activities (1)The maturity of the unsecured term loan facility assumes the exercise of one remaining 12-month extension option, at the Company’s election. (5)The 2026 lease expiration represents 49,255 rentable square feet that expires on September 30, 2026, and the 2027 expiration represents the remaining 483,701 rentable square feet that expires on September 30, (6)The mortgage notes are secured by the properties listed. (1)Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. 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 (3)During the year ended December 31, 2024, the Company incurred $17.1 million of cash retirement payments to the Company’s former CEO. Retention Rates (Leases Executed): Recent Developments (4)All development sites are anticipated to close upon receipt of residential entitlements and permits, which is expected to occur beginning in phases in late 2026. Included in Supplemental” for additional information. through June 2026. environmental and sustainability initiatives, all of which were previously included in General and administrative expenses. Historical amounts for General and administrative expenses and Other income (expense) have been revised to conform with the current period presentation. (7)Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders. (2)As of December 31, 2025, there was no outstanding balance on the unsecured revolving credit facility maturing on July 31, 2028. The unsecured revolving credit facility has two six-month extension options available, at 2027. Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted (7)Value based on closing share price of $37.37 as of December 31, 2025. •Dispositions / Held for Sale / Assets Under Contract: (4)Includes deferred income and lease incentives, net, deferred settlement and restoration fee income, deferred lease termination fee income, and other non-cash items. which are significant economic costs and activities that could materially impact the Company’s results from operations. In addition, Same Property Cash NOI should ▪Acadia Pharmaceuticals executed an approximately 16,000-square-foot lease and is expected to commence occupancy at Company’s FAD may not be comparable to other REITs. (2)Occupied and leased percentage calculations presented throughout this report are based on rentable square footage at the end of the period, inclusive of all remeasurements that occurred during the period. (3)Non-Cash GAAP NOI adjustments include the following items: Amortization of deferred revenue related to tenant-funded tenant improvements, Straight-line rents, net, Amortization of net below market rents, and Lease been revised to conform with the current period presentation. Kilroy Realty Q4 2025 Supplemental Report | 24 (2)During the three months and year ended December 31, 2025, we recognized an impairment charge of approximately $16.3 million to reduce the carrying amount of Sunset Media Center to its current fair value less (8)Ratios are calculated based on current quarter amounts unless otherwise noted. Net Debt to Company’s Share of EBITDAre and Adjusted EBITDAre are calculated on a trailing-12 month basis. Refer to page 33 for additional ________________________ •In January, added KOP 2 to the stabilized portfolio the Company's election. (8)Includes common units of the Operating Partnership not owned by the Company. Excludes noncontrolling interests in consolidated property partnerships. Calculated as the percentage of square footage renewed by existing tenants at lease expiration or termination divided by the square footage of space (5)During the year ended December 31, 2024, the Company sold its corporate aircraft for a sales price of $19.8 million and recognized a gain on sale of approximately $6.0 million. stock unitholders) divided by FFO attributable to common stockholders and unitholders. ◦In December, completed the sale of Sunset Media Center, an approximately 326,000-square-foot office property in the Hollywood (3)Calculated as the average of the daily ending occupancy percentages. related adjustments and other. 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. information. KOP 2 in the second quarter of 2026 closing costs. (1)Includes 100% of consolidated property partnerships. The Company calculates Annualized Base Rent as the annualized monthly contractual rents from existing tenants, including the impact of straight-lined rent (3)Includes scheduled principal payments for amortizing loans.
- In January, completed the sale of Kilroy Sabre Springs renewed by existing tenants and lease expirations during the period. Excludes square footage of short-term leases. (4)Capitalized interest guidance assumes the continued capitalization of the Company’s Flower Mart project through June 2026. (9)Based upon Annualized Base Rent, including 100% of consolidated property partnerships, as of the end of the period. Excludes leases at the Company’s three residential properties. (3)During the three months and year ended December 31, 2024, the Company sold its corporate aircraft for a sales price of $19.8 million and recognized a gain on sale of approximately $6.0 million. escalations and the amortization of free rent periods. Refer to pages 39-42 “Definitions Included in Supplemental” for additional information. submarket of Los Angeles, for gross sales proceeds of $61.0 million Jardine, Los Angeles, CA 2100 Kettner, San Diego, CA Aero, Long Beach, CA West8, Seattle, WA 201 Third, San Francisco, CA Indeed Tower, Austin, TX The Post at Indeed Tower, Austin, TX Kilroy Realty Q4 2025 Supplemental Report | 2 Kilroy Realty Q4 2025 Supplemental Report | 7 Kilroy Realty Q4 2025 Supplemental Report | 8 i ii iii iv v Kilroy Realty Q4 2025 Supplemental Report | 3 Kilroy Realty Q4 2025 Supplemental Report | 4 Kilroy Realty Q4 2025 Supplemental Report | 5 Kilroy Realty Q4 2025 Supplemental Report | 6 Kilroy Realty Q4 2025 Supplemental Report | 9 Kilroy Realty Q4 2025 Supplemental Report | 10 Kilroy Realty Q4 2025 Supplemental Report | 12 Kilroy Realty Q4 2025 Supplemental Report | 13 Kilroy Realty Q4 2025 Supplemental Report | 14 Kilroy Realty Q4 2025 Supplemental Report | 15 Kilroy Realty Q4 2025 Supplemental Report | 16 Kilroy Realty Q4 2025 Supplemental Report | 17 Kilroy Realty Q4 2025 Supplemental Report | 18 Kilroy Realty Q4 2025 Supplemental Report | 19 Kilroy Realty Q4 2025 Supplemental Report | 20 Kilroy Realty Q4 2025 Supplemental Report | 21 Kilroy Realty Q4 2025 Supplemental Report | 22 Kilroy Realty Q4 2025 Supplemental Report | 23 Kilroy Realty Q4 2025 Supplemental Report | 25 Kilroy Realty Q4 2025 Supplemental Report | 27 Kilroy Realty Q4 2025 Supplemental Report | 28 Kilroy Realty Q4 2025 Supplemental Report | 29 Kilroy Realty Q4 2025 Supplemental Report | 31 Kilroy Realty Q4 2025 Supplemental Report | 32 Kilroy Realty Q4 2025 Supplemental Report | 33 Kilroy Realty Q4 2025 Supplemental Report | 35 Kilroy Realty Q4 2025 Supplemental Report | 36 Kilroy Realty Q4 2025 Supplemental Report | 37 Kilroy Realty Q4 2025 Supplemental Report | 39 Kilroy Realty Q4 2025 Supplemental Report | 40 Kilroy Realty Q4 2025 Supplemental Report | 41 Kilroy Realty Q4 2025 Supplemental Report | 42 Kilroy Realty Q4 2025 Supplemental Report | 43 Kilroy Realty Q4 2025 Supplemental Report | 44 Kilroy Realty Q4 2025 Supplemental Report | 45