0001025996false00010259962024-10-282024-10-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2024
KILROY REALTY CORPORATION
(Exact name of registrant as specified in its charter)
Maryland001-1267595-4598246
(State or other jurisdiction of
incorporation or organization)
(Commission File No.)(I.R.S. Employer
Identification No.)

12200 W. Olympic Boulevard, Suite 200, Los Angeles, California, 90064
(Address of principal executive offices) (Zip Code)

(310) 481-8400
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
RegistrantTitle of each className of each exchange on which registeredTicker Symbol
Kilroy Realty CorporationCommon Stock, $.01 par valueNew York Stock ExchangeKRC

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company

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











Item 2.02    Results of Operations and Financial Condition.

On October 28, 2024, Kilroy Realty Corporation issued a press release announcing its earnings for the quarter ended September 30, 2024 and distributed certain supplemental financial information. On October 28, 2024, Kilroy Realty Corporation also posted the supplemental information on its website located at www.kilroyrealty.com. The text of the supplemental information and the related press release are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

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

Item 7.01    Regulation FD Disclosure.

As discussed in Item 2.02 above, Kilroy Realty Corporation issued a press release announcing its earnings for the quarter ended September 30, 2024 and distributed certain supplemental information. On October 28, 2024, Kilroy Realty Corporation also posted the supplemental information on its website located at www.kilroyrealty.com.

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

Item 9.01    Financial Statements and Exhibits.

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

The following exhibits are furnished with this Current Report on Form 8-K:
Exhibit No.Description
99.1*
99.2*
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
_______________
*    Furnished herewith.




SIGNATURES

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



Kilroy Realty Corporation
Date: October 28, 2024
By:/s/ Merryl E. Werber
Merryl E. Werber
Senior Vice President,
Chief Accounting Officer and Controller





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Q3 2024 Supplemental Financial Report
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KILROY REALTY CORPORATION REPORTS
THIRD QUARTER FINANCIAL RESULTS
---------------

LOS ANGELES, October 28, 2024 - Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its third quarter ended September 30, 2024.

Financial Results
Revenues grew 2.2% to $289.9 million for the quarter ended September 30, 2024, as compared to $283.6 million for the quarter ended September 30, 2023
Net income available to common stockholders of $0.44 per diluted share, as compared to $0.45 per diluted share for the quarter ended September 30, 2023
Funds from operations available to common stockholders and unitholders (“FFO”) of $140.4 million, or $1.17 per diluted share, an increase of 4.5% as compared to $134.0 million, or $1.12 per diluted share, for the quarter ended September 30, 2023

“I’m pleased to report on a strong quarter of execution across our platform as we continue to navigate the recovery that is taking hold in our markets,” commented Angela Aman, CEO. “In addition to solid third quarter leasing activity, we have also been active on the capital allocation front, acquiring a small office campus located strategically adjacent to our One Paseo mixed-use project in San Diego.”

Leasing and Occupancy
Stabilized portfolio was 84.3% occupied and 85.8% leased at September 30, 2024
During the quarter ended September 30, 2024, signed approximately 436,000 square feet of leases, comprised of 48,000 square feet of new leasing on previously vacant space, 38,000 square feet of new leasing on currently occupied space, and 350,000 square feet of renewal leasing
Includes 209,000 square feet of short-term leasing, primarily comprised of 198,000 square feet of short-term renewal leasing
During the quarter ended September 30, 2024, DermTech, which filed for bankruptcy during the quarter ended June 30, 2024, rejected its lease and Kilroy executed a 110,000 square foot short-term lease with the successor entity to facilitate DermTech’s interim operations. This lease has been excluded from the leasing productivity statistics above
During the quarter ended September 30, 2024, GAAP rents on signed leases increased 26.0% and cash rents increased 7.1% from prior levels on second generation leasing, excluding short-term leasing

Acquisition Activity
In September, completed the acquisition of Junction at Del Mar, an approximately 104,000 square foot office property, comprised of two buildings in the Del Mar submarket of San Diego, for $35.0 million. The buildings, which are located adjacent to the Company’s One Paseo mixed-use project, are 96% leased with a weighted average lease term of 4.7 years
Balance Sheet / Liquidity
In September, repaid the full amount outstanding on the $120.0 million term loan, which had an initial maturity date of October 3, 2024
As of September 30, 2024, the Company had approximately $1.7 billion of total liquidity comprised of approximately $0.6 billion of cash and approximately $1.1 billion available under the fully undrawn unsecured revolving credit facility

Dividend
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 $2.16
The dividend was paid on October 9, 2024 to stockholders of record on September 30, 2024 (the ex-dividend date)

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Net Income Available to Common Stockholders / FFO Guidance and Outlook
The Company is providing an updated Nareit-defined FFO per diluted share guidance for the full year 2024 of $4.38 to $4.44 per share, with a midpoint of $4.41 per share.
Full Year 2024 Range
as of July 2024
Full Year 2024 Range
as of October 2024
Low EndHigh EndLow EndHigh End
$ and shares/units in thousands, except per share/unit amounts
Net income available to common stockholders per share - diluted$1.50 $1.59 $1.61 $1.66 
Weighted average common shares outstanding - diluted (1)
118,000 118,000 118,150 118,150 
Net income available to common stockholders$177,000 $188,000 $190,000 $196,000 
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership1,800 1,900 1,900 2,000 
Net income attributable to noncontrolling interests in consolidated property partnerships20,500 21,000 20,250 20,750 
Depreciation and amortization of real estate assets338,000 339,000 346,000 347,000 
Gains on sales of depreciable real estate— — — — 
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships(31,500)(32,000)(31,500)(32,000)
Funds From Operations (2)
$505,800 $517,900 $526,650 $533,750 
Weighted average common shares/units outstanding – diluted (3)
120,200 120,200 120,250 120,250 
Funds From Operations per common share/unit – diluted (3)
$4.21 $4.31 $4.38 $4.44 

Key AssumptionsJuly 2024 AssumptionsOctober 2024 Assumptions
Change in same store cash NOI (2)
(3.0%) to (4.0%)(1.5%) to (2.0%)
Average full year occupancy82.75% to 83.75%83.75% to 84.25%
General and administrative expenses$72 million to $80 million$74 million to $76 million
Total development spending (4)
$225 million to $275 million$250 million to $275 million
Weighted average common shares/units outstanding – diluted (in thousands) (3)
120,200120,225
 ________________________
(1)Calculated based on estimated weighted average shares outstanding, including non-participating share-based awards and the dilutive impact of contingently issuable shares.
(2)See pages 33-34 for Management Statements on Funds From Operations and Same Store Cash Net Operating Income.
(3)Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, and the dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.
(4)Remaining 2024 development spending is $50 million to $75 million.

The Company’s guidance estimates for the full year 2024, and the reconciliation of net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this press release, reflect management’s views on current and future market conditions, including assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this press release. These guidance estimates do not include the impact on the Company’s operating results from potential future acquisitions, dispositions (including any associated gains or
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losses), capital markets activity, impairment charges, or any events outside of the Company’s control, as the timing and magnitude 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 materially from these estimates.

Conference Call and Audio Webcast
The Company’s management will discuss third quarter results and the current business environment during the Company’s October 29, 2024 earnings 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, register by using the following link, https://www.netroadshow.com/events/login?show=f1c41247&confId=58186. Those interested in listening via the Internet can access the conference call at https://events.q4inc.com/attendee/193901324. It may be necessary to download audio software to hear the conference call.



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Table of Contents
Page
2024 Operating Property Acquisitions
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 periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California, Texas, and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the entertainment 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, 2023, and its other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. Kilroy Realty Corporation assumes no obligation to update any forward-looking statement made in this Supplemental Financial Report that becomes untrue because of subsequent events, new information, or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.
Pictured on cover page, in order of appearance: Sunset Media Center, Hollywood, CA | One Paseo Office, San Diego, CA | 9514 Towne Centre Drive, San Diego, CA



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01
Corporate Data and Financial Highlights

Company Background
Financial Highlights
Consolidated Balance Sheets
Consolidated Statements of Operations
Funds From Operations and Funds Available for Distribution
Net Operating Income



Q3 2024 Supplemental Financial Report
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Company Background

Kilroy Realty Corporation (NYSE: KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is a leading U.S. landlord and developer, with operations in San Diego, Los Angeles, the San Francisco Bay Area, Seattle, and Austin. The Company has over seven decades of experience developing, acquiring and managing office, life science, and mixed-use real estate assets. At September 30, 2024, the Company’s stabilized portfolio comprised of 123 buildings encompassing an aggregate of approximately 17.1 million square feet of primarily office and life science space that was 84.3% occupied and 85.8% leased. The Company also has 1,001 residential units in the Los Angeles and San Diego regions, which had an average occupancy of 92.0% for the quarter ended September 30, 2024. 
Board of DirectorsExecutive and Senior Management TeamInvestor Relations
Edward F. Brennan, PhDChairAngela M. AmanChief Executive Officer12200 W. Olympic Blvd., Suite 200
Los Angeles, CA 90064
(310) 481-8400
Web: www.kilroyrealty.com
E-mail: investorrelations@kilroyrealty.com
Angela M. AmanJustin W. SmartPresident
Daryl J. CarterJeffrey R. KuehlingEVP, Chief Financial Officer
Jolie A. HuntJohn A. OsmondEVP, Head of Asset Management
Scott S. Ingraham
A. Robert Paratte
EVP, Chief Leasing Officer
Louisa G. RitterHeidi R. RothEVP, Chief Administrative Officer
Gary R. StevensonLauren N. StadlerEVP, General Counsel and SecretaryJ. Taylor FriendSVP, Capital Markets and Treasurer
Peter B. StonebergEliott L. TrencherEVP, Chief Investment Officer
Merryl E. WerberSVP, Chief Accounting Officer and Controller
Equity Research Coverage
BarclaysJefferies LLC
Brendan Lynch(212) 526-9428Peter Abramowitz(212) 336-7241
BofA SecuritiesJ.P. Morgan
Jeffrey Spector(646) 855-1363Anthony Paolone(212) 622-6682
BMO Capital Markets Corp.Keybanc Capital Markets
John P. Kim(212) 885-4115Upal Rana(917) 368-2316
BTIGMizuho Securities USA LLC
Thomas Catherwood(212) 738-6140Vikram Malhotra(212) 282-3827
Citigroup Investment ResearchRBC Capital Markets
Michael Griffin(212) 816-5871Mike Carroll(440) 715-2649
Deutsche Bank Securities, Inc. Scotiabank
Omotayo Okusanya(212) 250-9284Nicholas Yulico(212) 225-6904
Evercore ISIWells Fargo
Steve Sakwa(212) 446-9462Blaine Heck(410) 662-2556
Goldman Sachs & Co. LLCWolfe Research
Caitlin Burrows(212) 902-4736Andrew Rosivach(646) 582-9250
Green Street Advisors
Dylan Burzinski(949) 640-8780

Kilroy Realty Corporation is followed by the analysts listed above. Please note that any opinions, estimates, or forecasts regarding Kilroy Realty Corporation’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Kilroy Realty Corporation or its management. Kilroy Realty Corporation does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.
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Financial Highlights
(unaudited, $ in thousands, except per share amounts)
Three Months Ended
 9/30/20246/30/20243/31/202412/31/20239/30/2023
INCOME ITEMS:
Revenues$289,938 $280,731 $278,581 $269,016 $283,594 
Capitalized Interest and Debt Costs20,827 20,515 19,807 21,510 20,056 
Cash Lease Termination Fees (1)
50 2,465 3,851 3,437 1,682 
EARNINGS METRICS:
Net Income Available to Common Stockholders $52,378 $49,211 $49,920 $47,284 $52,762 
Net Operating Income (2)
196,691 189,447 189,270 184,725 193,396 
EBITDA, as adjusted (3)
185,960 178,461 182,602 171,387 173,798 
Company's Share of EBITDA, as adjusted (3)
178,475 170,860 173,942 163,059 165,408 
Company's Share of EBITDA, as adjusted less interest income (3)
168,787 160,776 160,752 152,363 158,393 
Funds From Operations (4)
140,448 132,587 133,723 129,257 134,047 
Funds Available for Distribution (4)
96,820 114,834 125,328 109,528 118,698 
PER SHARE INFORMATION (5):
Net Income Available to Common Stockholders per common share – diluted$0.44 $0.41 $0.42 $0.40 $0.45 
Funds From Operations per common share – diluted (4)
1.17 1.10 1.11 1.08 1.12 
Dividends declared per common share0.54 0.54 0.54 0.54 0.54 
RATIOS (6):
Net Operating Income Margin (2)
67.8 %67.5 %67.9 %68.7 %68.2 %
Net Debt to Company's Share of EBITDA, as adjusted Ratio (3)(7)
6.4x6.4x6.3x6.2x6.1x
Net Debt to Company's Share of EBITDA, as adjusted less interest income Ratio (3)(7)
6.9x6.8x6.6x6.5x6.2x
Fixed Charge Coverage Ratio - Net Income1.1x1.0x1.0x1.0x1.2x
Fixed Charge Coverage Ratio - EBITDA, as adjusted (3)
3.4x3.3x3.3x3.4x3.7x
Net Income Payout Ratio111.6 %117.3 %114.9 %120.5 %108.8 %
FFO / FAD Payout Ratio (4)
45.8% / 66.5%48.3% / 55.7%47.9% / 51.1%49.5% / 58.4%47.7% / 53.9%
STABILIZED PORTFOLIO INFORMATION:
Change in Same Store Net Operating Income (8)
1.5 %(5.7)%(9.4)%(10.6)%(5.0)%
Change in Same Store Cash Net Operating Income (8)
2.7 %0.2 %(7.2)%(1.2)%0.2 %
Period End Occupancy Percentage84.3 %83.7 %84.2 %85.0 %86.2 %
Period End Leased Percentage85.8 %85.4 %85.7 %86.4 %87.5 %
Lease Composition (Net / Gross) (9)
51% / 49%51% / 49%51% / 49%51% / 49%49% / 51%

________________________
Note: Definitions for commonly used terms in this Supplemental Financial Report are on pages 36-38 “Definitions Included in Supplemental.” Refer to pages 32-34 for Management Statements on non-GAAP supplemental measures.        
(1)Represents cash receipts of lease termination fees in the period they are received, which may not correspond to the timing of GAAP revenue recognition of the lease termination fee over the remaining term of the lease.
(2)Please refer to page 39 for a reconciliation of GAAP Net Income Available to Common Stockholders to Net Operating Income.
(3)Please refer to page 41 for a reconciliation of GAAP Net Income Available to Common Stockholders to the Company's EBITDA metrics.
(4)Please refer to page 6 for reconciliations of GAAP Net Income Available to Common Stockholders to Funds From Operations available to common stockholders and unitholders and Funds Available for Distribution to common stockholders and unitholders and page 42 for a reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution to common stockholders and unitholders.
(5)Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.
(6)Ratios are calculated based on current quarter annualized amounts unless otherwise noted.
(7)Calculated on a trailing-12 month basis. Please refer to page 30 for the calculation of this ratio.
(8)Calculated as the change over the same prior year period. For all quarterly periods in 2024, the Same Store Portfolio was comprised of 119 properties. For all quarterly periods in 2023, the Same Store Portfolio was comprised of 115 properties.
(9)Based upon annualized base rent, including 100% of consolidated property partnerships, as of the period end. Excludes leases at our three residential properties.
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Consolidated Balance Sheets
(unaudited, $ in thousands)
9/30/20246/30/20243/31/202412/31/20239/30/2023
ASSETS:
Land and improvements$1,750,820 $1,743,170 $1,743,170 $1,743,170 $1,743,170 
Buildings and improvements8,573,332 8,501,976 8,479,359 8,463,674 8,431,499 
Undeveloped land and construction in progress2,254,628 2,207,180 2,114,242 2,034,804 1,950,424 
Total real estate assets held for investment12,578,780 12,452,326 12,336,771 12,241,648 12,125,093 
Accumulated depreciation and amortization(2,747,494)(2,671,141)(2,594,996)(2,518,304)(2,443,659)
Total real estate assets held for investment, net9,831,286 9,781,185 9,741,775 9,723,344 9,681,434 
Cash and cash equivalents625,395 835,893 855,007 510,163 618,794 
Marketable securities27,144 32,648 109,513 284,670 278,789 
Current receivables, net11,218 10,229 13,291 13,609 11,383 
Deferred rent receivables, net455,613 458,177 457,494 460,979 466,073 
Deferred leasing costs and acquisition-related intangible assets, net226,991 220,485 226,506 229,705 228,742 
Right of use ground lease assets129,492 129,760 130,026 125,506 125,765 
Prepaid expenses and other assets, net73,495 75,379 65,588 53,069 60,141 
TOTAL ASSETS$11,380,634 $11,543,756 $11,599,200 $11,401,045 $11,471,121 
LIABILITIES AND EQUITY:
Liabilities:
Secured debt, net$599,478 $600,741 $601,990 $603,225 $604,480 
Unsecured debt, net4,401,678 4,519,796 4,518,297 4,325,153 4,330,326 
Accounts payable, accrued expenses and other liabilities354,785 361,759 401,892 371,179 426,662 
Ground lease liabilities128,606 128,787 128,966 124,353 124,517 
Accrued dividends and distributions64,844 65,118 65,111 64,440 64,423 
Deferred revenue and acquisition-related intangible liabilities, net151,670 160,284 166,436 173,638 178,542 
Rents received in advance and tenant security deposits71,033 73,013 73,777 79,364 74,646 
Total liabilities5,772,094 5,909,498 5,956,469 5,741,352 5,803,596 
Equity:
Stockholders’ Equity
Common stock1,181 1,174 1,174 1,173 1,173 
Additional paid-in capital5,203,195 5,216,699 5,208,753 5,205,839 5,195,106 
Retained earnings175,962 187,796 203,080 221,149 237,665 
Total stockholders’ equity5,380,338 5,405,669 5,413,007 5,428,161 5,433,944 
Noncontrolling Interests
Common units of the Operating Partnership52,441 52,985 53,087 53,275 53,328 
Noncontrolling interests in consolidated property partnerships175,761 175,604 176,637 178,257 180,253 
Total noncontrolling interests228,202 228,589 229,724 231,532 233,581 
Total equity5,608,540 5,634,258 5,642,731 5,659,693 5,667,525 
TOTAL LIABILITIES AND EQUITY$11,380,634 $11,543,756 $11,599,200 $11,401,045 $11,471,121 
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Consolidated Statements of Operations
(unaudited, $ and shares in thousands, except per share amounts)
Three Months EndedNine Months Ended
9/30/20246/30/20243/31/202412/31/20239/30/20239/30/20249/30/2023
REVENUES
Rental income$285,951 $275,919 $274,890 $265,643 $280,681 $836,760 $852,094 
Other property income3,987 4,812 3,691 3,373 2,913 12,490 8,584 
Total revenues289,938 280,731 278,581 269,016 283,594 849,250 860,678 
EXPENSES
Property expenses63,593 59,279 57,320 60,731 59,445 180,192 168,233 
Real estate taxes26,677 29,009 29,239 21,000 28,363 84,925 84,868 
Ground leases2,977 2,996 2,752 2,560 2,390 8,725 7,172 
General and administrative expenses (1)
18,066 18,951 17,579 22,078 24,761 54,596 71,356 
Leasing costs2,353 2,119 2,279 1,956 1,852 6,751 4,550 
Depreciation and amortization91,879 87,151 88,031 86,016 85,224 267,061 269,262 
Total expenses205,545 199,505 197,200 194,341 202,035 602,250 605,441 
OTHER INCOME (EXPENSES)
Interest income9,688 10,084 13,190 10,696 7,015 32,962 11,896 
Interest expense(36,408)(36,763)(38,871)(32,325)(29,837)(112,042)(81,891)
Total other expenses(26,720)(26,679)(25,681)(21,629)(22,822)(79,080)(69,995)
NET INCOME57,673 54,547 55,700 53,046 58,737 167,920 185,242 
Net income attributable to noncontrolling common units of the Operating Partnership(509)(458)(502)(471)(515)(1,469)(1,612)
Net income attributable to noncontrolling interests in consolidated property partnerships (4,786)(4,878)(5,278)(5,291)(5,460)(14,942)(18,673)
Total income attributable to noncontrolling interests(5,295)(5,336)(5,780)(5,762)(5,975)(16,411)(20,285)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$52,378 $49,211 $49,920 $47,284 $52,762 $151,509 $164,957 
Weighted average common shares outstanding – basic117,830 117,375 117,338 117,240 117,185 117,516 117,133 
Weighted average common shares outstanding – diluted118,244 117,663 117,961 117,816 117,495 117,955 117,411 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE
Net income available to common stockholders per share – basic$0.44 $0.41 $0.42 $0.40 $0.45 $1.27 $1.40 
Net income available to common stockholders per share – diluted$0.44 $0.41 $0.42 $0.40 $0.45 $1.27 $1.40 
_______________________
(1)The three months ended December 31, 2023 and September 30, 2023 includes $4.9 million and $5.8 million, respectively, of retirement costs for our former CEO, primarily comprised of accelerated stock compensation expense. The nine months ended September 30, 2023 includes $12.1 million of retirement costs for our former CEO and former President, primarily comprised of accelerated stock compensation expense.
5

Q3 2024 Supplemental Financial Report
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Funds From Operations and Funds Available for Distribution
(unaudited, $ in thousands, except per share amounts)
Three Months EndedNine Months Ended
9/30/20246/30/20243/31/202412/31/20239/30/20239/30/20249/30/2023
FUNDS FROM OPERATIONS (1):
Net income available to common stockholders$52,378 $49,211 $49,920 $47,284 $52,762 $151,509 $164,957 
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership509 458 502 471 515 1,469 1,612 
Net income attributable to noncontrolling interests in consolidated property partnerships4,786 4,878 5,278 5,291 5,460 14,942 18,673 
Depreciation and amortization of real estate assets 90,243 85,589 86,460 84,402 83,518 262,292 263,662 
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships(7,468)(7,549)(8,437)(8,191)(8,208)(23,454)(27,045)
Funds From Operations (1)
$140,448 $132,587 $133,723 $129,257 $134,047 $406,758 $421,859 
Weighted average common shares/units outstanding – basic (2)
119,702 120,034 119,660 118,896 118,934 119,798 118,894 
Weighted average common shares/units outstanding – diluted (3)
120,115 120,322 120,283 119,473 119,245 120,237 119,172 
FFO per common share/unit – basic (1)
$1.17 $1.10 $1.12 $1.09 $1.13 $3.40 $3.55 
FFO per common share/unit – diluted (1)
$1.17 $1.10 $1.11 $1.08 $1.12 $3.38 $3.54 
FUNDS AVAILABLE FOR DISTRIBUTION (1):
Funds From Operations (1)
$140,448 $132,587 $133,723 $129,257 $134,047 $406,758 $421,859 
Adjustments:
Recurring tenant improvements, leasing commissions and capital expenditures(25,662)(22,069)(11,763)(31,411)(20,519)(59,494)(56,135)
Amortization of deferred revenue related to tenant-funded tenant improvements (4)
(4,213)(4,358)(6,502)(5,717)(4,883)(15,073)(14,980)
Net effect of straight-line rents2,615 (634)3,536 5,143 (2,382)5,517 (13,721)
Amortization of net below market rents (5)
(885)(886)(904)(973)(1,034)(2,675)(5,675)
Amortization of deferred financing costs and net debt discount/premium1,926 1,560 1,757 1,279 1,312 5,243 3,921 
Non-cash amortization of share-based compensation awards and adjustments for executive retirement obligations (6)
(12,389)5,889 3,381 8,498 10,596 (3,119)28,360 
Lease related adjustments and other (7)
(7,226)830 1,216 1,966 (401)(5,180)2,955 
Adjustments attributable to noncontrolling interests in consolidated property partnerships 2,206 1,915 884 1,486 1,962 5,005 4,193 
Funds Available for Distribution (1)
$96,820 $114,834 $125,328 $109,528 $118,698 $336,982 $370,777 
________________________
(1)Please refer to pages 32-34 for Management Statements on non-GAAP supplemental measures. Reported per common share/unit amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.
(2)Calculated based on weighted average shares outstanding including participating share-based awards and assuming the exchange of all common limited partnership units outstanding.
(3)Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.
(4)Represents revenue recognized during the period as a result of the amortization of deferred revenue recorded for tenant-funded tenant improvements.
(5)Represents the non-cash adjustment related to the acquisition of buildings with above and/or below market rents.
(6)The three and nine months ended September 30, 2024 includes $17.1 million of cash retirement payments to our former CEO.
(7)Includes other cash and non-cash adjustments attributable to lease-related matters including GAAP revenue recognition timing differences and other.
6

Q3 2024 Supplemental Financial Report
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Net Operating Income
(unaudited, $ in thousands)
Three Months Ended September 30,Nine Months Ended September 30,
20242023% Change20242023% Change
Operating Revenues:
Rental income (1)
$234,105 $231,579 1.1 %$687,183 $709,657 (3.2)%
Tenant reimbursements (1)
51,846 49,102 5.6 %149,577 142,437 5.0 %
Other property income3,987 2,913 36.9 %12,490 8,584 45.5 %
Total operating revenues289,938 283,594 2.2 %849,250 860,678 (1.3)%
Operating Expenses:
Property expenses 63,593 59,445 7.0 %180,192 168,233 7.1 %
Real estate taxes26,677 28,363 (5.9)%84,925 84,868 0.1 %
Ground leases2,977 2,390 24.6 %8,725 7,172 21.7 %
Total operating expenses93,247 90,198 3.4 %273,842 260,273 5.2 %
Net Operating Income (2)
$196,691 $193,396 1.7 %$575,408 $600,405 (4.2)%

chart-bf7070714ae8453a8c6a.jpgchart-80dca5d8246f4822a76a.jpg
piechartdataa.jpg
________________________
(1)Revenue from tenant reimbursements is included in rental income on our consolidated statements of operations.
(2)Please refer to page 32-34 for Management Statements on non-GAAP supplemental measures and page 39 for a reconciliation of GAAP Net Income Available to Common Stockholders to Net Operating Income.
7


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02
Portfolio Data

Same Store Analysis
Stabilized Portfolio Occupancy Overview by Region
Information on Leases Commenced & Leases Executed
Stabilized Portfolio Capital Expenditures
Stabilized Portfolio Lease Expirations
Top 20 Tenants
Tenant Industry Diversification
2024 Operating Property Acquisitions
Consolidated Ventures (Noncontrolling Property Partnerships)


Q3 2024 Supplemental Financial Report
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Same Store Analysis
(unaudited, $ in thousands)
Three Months Ended September 30,Nine Months Ended September 30,
20242023% Change% Contribution20242023% Change% Contribution
Total Same Store Portfolio (1)
Number of properties119 119 119 119 
Square Feet16,207,143 16,207,143 16,207,143 16,207,143 
Average Occupancy84.6 %86.1 %84.7 %87.8 %
Percent of Stabilized Portfolio (2)
94.6 %94.6 %
Operating Revenues:
Rental income (3)
$224,549 $223,034 0.7 %0.8 %$658,746 $687,084 (4.1)%(4.9)%
Tenant reimbursements (3)
49,255 46,293 6.4 %1.6 %139,438 132,502 5.2 %1.2 %
Other property income 3,532 2,720 29.9 %0.5 %10,862 7,833 38.7 %0.5 %
Total operating revenues277,336 272,047 1.9 %2.9 %809,046 827,419 (2.2)%(3.2)%
Operating Expenses:
Property expenses61,170 57,503 6.4 %(2.0)%173,509 163,233 6.3 %(1.8)%
Real estate taxes 25,586 26,794 (4.5)%0.7 %77,324 79,275 (2.5)%0.4 %
Ground leases 2,016 1,895 6.4 %(0.2)%5,996 5,673 5.7 %(0.1)%
Total operating expenses88,772 86,192 3.0 %(1.4)%256,829 248,181 3.5 %(1.5)%
Net Operating Income$188,564 $185,855 1.5 %1.5 %$552,217 $579,238 (4.7)%(4.7)%
Same Store Analysis (Cash Basis)
 Three Months Ended September 30,Nine Months Ended September 30,
 20242023% Change% Contribution20242023% Change% Contribution
Total operating revenues (4)
$272,342 $264,848 2.8 %4.2 %$798,819 $798,972 — %— %
Total operating expenses88,697 86,093 3.0 %(1.5)%256,582 247,881 3.5 %(1.6)%
Cash Net Operating Income (5)
$183,645 $178,755 2.7 %2.7 %$542,237 $551,091 (1.6)%(1.6)%
________________________
(1)Same Store is defined as all properties owned and included in our stabilized portfolio as of January 1, 2023 and still owned and included in the stabilized portfolio as of September 30, 2024. Same Store includes 100% of consolidated property partnerships as well as our three residential properties.
(2)Based on rentable square feet at the end of the period.
(3)Revenue from tenant reimbursements is included in rental income on our consolidated statements of operations.
(4)For same store cash basis, lease termination and restoration fees are recognized in the period they are received, which may not correspond to the timing of GAAP revenue recognition. Tenant prepayments are recognized in the applicable lease billing period.
(5)Please refer to pages 32-34 for Management Statements on non-GAAP supplemental measures. Please refer to page 39 for a reconciliation of GAAP Net Income Available to Common Stockholders to Same Store Net Operating Income and Same Store Cash Net Operating Income. Adjustments to GAAP operating revenues include the net effect of straight-line rents, amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above and below market lease intangibles, and revenue reversals (recoveries) related to tenant creditworthiness.

9

Q3 2024 Supplemental Financial Report
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Stabilized Portfolio Occupancy Overview by Region

Portfolio Breakdown
Total Rentable Square Feet (3)
Occupied at
Leased at (4)
STABILIZED PORTFOLIO (1)(2)
YTD NOI %Rentable Square Feet %9/30/20246/30/20249/30/20246/30/2024
Los Angeles
Hollywood / West Hollywood8.7 %8.1 %1,383,563 85.8 %84.9 %86.1 %86.1 %
El Segundo3.2 %6.4 %1,103,595 81.8 %74.4 %82.5 %74.4 %
Long Beach2.2 %5.6 %957,706 81.1 %79.3 %85.6 %83.8 %
West Los Angeles2.3 %4.2 %726,975 59.2 %58.8 %59.2 %58.8 %
Culver City0.0 %1.0 %166,207 18.6 %13.4 %18.6 %18.6 %
Total Los Angeles16.4 %25.3 %4,338,046 76.7 %73.9 %78.0 %75.5 %
San Diego
Del Mar12.2 %11.1 %1,897,801 96.4 %96.8 %97.4 %97.7 %
I-15 Corridor1.5 %2.5 %427,762 77.3 %81.8 %83.2 %81.8 %
Little Italy / Point Loma0.3 %1.9 %319,879 42.6 %42.6 %51.9 %50.0 %
University Towne Center1.8 %1.3 %231,060 100.0 %100.0 %100.0 %100.0 %
Total San Diego15.8 %16.8 %2,876,502 87.9 %88.5 %90.5 %89.9 %
San Francisco Bay Area
San Francisco CBD26.1 %19.8 %3,400,600 84.8 %84.8 %85.4 %85.5 %
Silicon Valley8.8 %7.5 %1,286,100 100.0 %100.0 %100.0 %100.0 %
South San Francisco8.7 %4.7 %806,109 100.0 %100.0 %100.0 %100.0 %
Other Peninsula4.6 %4.0 %677,786 94.6 %86.6 %98.0 %98.0 %
Total San Francisco Bay Area48.2 %36.0 %6,170,595 91.1 %90.1 %91.7 %91.8 %
Seattle
Lake Union / Denny Regrade10.2 %12.1 %2,077,052 74.2 %78.0 %75.7 %78.7 %
Bellevue5.8 %5.4 %919,295 94.4 %94.4 %94.9 %95.0 %
Total Seattle16.0 %17.5 %2,996,347 80.4 %83.1 %81.6 %83.7 %
Austin
Austin CBD3.6 %4.4 %758,975 74.2 %72.3 %80.7 %79.9 %
Total Austin3.6 %4.4 %758,975 74.2 %72.3 %80.7 %79.9 %
TOTAL STABILIZED PORTFOLIO100.0 %100.0 %17,140,465 84.3 %83.7 %85.8 %85.4 %
Average Occupancy
Quarter-to-DateYear-to-Date
84.1%84.1%
________________________
(1)Excludes residential properties.
(2)Buildings within a complex of properties are analyzed at the complex level.
(3)Occupied and leased percentage calculations presented throughout this report are based on rentable square feet at the end of the period, inclusive of all remeasurements that occurred during the period.
(4)Leases with a lease term less of than one year are included in the leased percentage upon lease commencement.
10

Q3 2024 Supplemental Financial Report
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Stabilized Portfolio Occupancy Overview by Region, continued
 Rentable Square FeetOccupied atLeased at
Submarket9/30/20246/30/20249/30/20246/30/2024
Los Angeles, California
1350 Ivar AvenueHollywood / West Hollywood16,448 100.0 %100.0 %100.0 %100.0 %
1355 Vine StreetHollywood / West Hollywood183,129 100.0 %100.0 %100.0 %100.0 %
1375 Vine StreetHollywood / West Hollywood159,236 100.0 %100.0 %100.0 %100.0 %
1395 Vine StreetHollywood / West Hollywood2,575 100.0 %100.0 %100.0 %100.0 %
1500 N. El Centro AvenueHollywood / West Hollywood113,447 63.6 %63.6 %63.6 %63.6 %
1525 N. Gower StreetHollywood / West Hollywood9,610 100.0 %100.0 %100.0 %100.0 %
1575 N. Gower StreetHollywood / West Hollywood264,430 98.3 %98.3 %98.3 %98.3 %
6115 W. Sunset BoulevardHollywood / West Hollywood26,238 23.8 %23.8 %23.8 %23.8 %
6121 W. Sunset BoulevardHollywood / West Hollywood93,418 100.0 %100.0 %100.0 %100.0 %
6255 W. Sunset BoulevardHollywood / West Hollywood325,772 64.6 %63.6 %65.2 %65.0 %
8560 W. Sunset BoulevardHollywood / West Hollywood76,359 93.6 %83.4 %93.6 %93.6 %
8570 W. Sunset BoulevardHollywood / West Hollywood49,276 94.5 %94.5 %99.0 %99.0 %
8580 W. Sunset BoulevardHollywood / West Hollywood6,875 0.0 %0.0 %0.0 %0.0 %
8590 W. Sunset BoulevardHollywood / West Hollywood56,750 97.4 %97.4 %99.7 %99.7 %
2240 E. Imperial HighwayEl Segundo122,870 100.0 %100.0 %100.0 %100.0 %
2250 E. Imperial HighwayEl Segundo298,728 80.0 %46.2 %80.0 %46.2 %
2260 E. Imperial HighwayEl Segundo298,728 100.0 %100.0 %100.0 %100.0 %
909 N. Pacific Coast HighwayEl Segundo244,880 71.3 %79.3 %72.2 %79.3 %
999 N. Pacific Coast HighwayEl Segundo138,389 48.7 %48.4 %52.5 %48.4 %
3750 Kilroy Airport WayLong Beach10,718 100.0 %100.0 %100.0 %100.0 %
3760 Kilroy Airport WayLong Beach166,761 80.4 %78.3 %80.4 %80.4 %
3780 Kilroy Airport WayLong Beach221,452 95.7 %89.4 %98.1 %94.1 %
3800 Kilroy Airport WayLong Beach192,476 89.3 %89.3 %93.5 %89.3 %
3840 Kilroy Airport WayLong Beach138,441 77.6 %77.6 %77.6 %77.6 %
3880 Kilroy Airport WayLong Beach96,923 51.9 %51.9 %51.9 %51.9 %
3900 Kilroy Airport WayLong Beach130,935 69.3 %69.3 %91.4 %91.4 %
12100 W. Olympic BoulevardWest Los Angeles155,679 74.1 %74.1 %74.1 %74.1 %
12200 W. Olympic BoulevardWest Los Angeles154,544 32.0 %32.0 %32.0 %32.0 %
12233 W. Olympic BoulevardWest Los Angeles156,746 50.2 %48.4 %50.2 %48.4 %
12312 W. Olympic BoulevardWest Los Angeles76,644 100.0 %100.0 %100.0 %100.0 %
2100/2110 Colorado AvenueWest Los Angeles104,853 55.4 %55.4 %55.4 %55.4 %
501 Santa Monica BoulevardWest Los Angeles78,509 66.5 %66.5 %66.5 %66.5 %
3101-3243 La Cienega BoulevardCulver City166,207 18.6 %13.4 %18.6 %18.6 %
Total Los Angeles 4,338,046 76.7 %73.9 %78.0 %75.5 %
 

11

Q3 2024 Supplemental Financial Report
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Stabilized Portfolio Occupancy Overview by Region, continued
Rentable Square FeetOccupied atLeased at
Submarket9/30/20246/30/20249/30/20246/30/2024
San Diego, California
12225 El Camino RealDel Mar58,401 100.0 %100.0 %100.0 %100.0 %
12235 El Camino RealDel Mar53,751 100.0 %100.0 %100.0 %100.0 %
12340 El Camino Real Del Mar109,307 100.0 %100.0 %100.0 %100.0 %
12390 El Camino RealDel Mar73,238 100.0 %100.0 %100.0 %100.0 %
12770 El Camino RealDel Mar75,035 100.0 %100.0 %100.0 %100.0 %
12780 El Camino RealDel Mar140,591 100.0 %100.0 %100.0 %100.0 %
12790 El Camino RealDel Mar87,944 100.0 %100.0 %100.0 %100.0 %
12830 El Camino RealDel Mar196,444 100.0 %100.0 %100.0 %100.0 %
12860 El Camino RealDel Mar92,042 100.0 %100.0 %100.0 %100.0 %
12348 High Bluff DriveDel Mar39,192 51.5 %51.5 %51.5 %51.5 %
12400 High Bluff Drive Del Mar216,518 100.0 %100.0 %100.0 %100.0 %
12707 High Bluff Drive *Del Mar59,245 93.5 %N/A93.5 %N/A
12777 High Bluff Drive *Del Mar44,486 100.0 %N/A100.0 %N/A
3579 Valley Centre Drive
Del Mar54,960 87.0 %94.7 %94.7 %94.7 %
3611 Valley Centre Drive Del Mar132,425 100.0 %100.0 %100.0 %100.0 %
3661 Valley Centre DriveDel Mar131,662 100.0 %100.0 %100.0 %100.0 %
3721 Valley Centre DriveDel Mar117,777 78.9 %78.4 %90.3 %90.0 %
3811 Valley Centre DriveDel Mar118,912 100.0 %100.0 %100.0 %100.0 %
3745 Paseo PlaceDel Mar95,871 86.3 %89.6 %87.9 %91.2 %
 13480 Evening Creek Drive NorthI-15 Corridor143,401 56.7 %57.1 %56.7 %57.1 %
13500 Evening Creek Drive NorthI-15 Corridor137,660 100.0 %92.9 %100.0 %92.9 %
13520 Evening Creek Drive NorthI-15 Corridor146,701 76.3 %95.2 %93.4 %95.2 %
2100 Kettner Boulevard Little Italy / Point Loma212,423 22.6 %22.6 %33.5 %30.6 %
2305 Historic Decatur RoadLittle Italy / Point Loma107,456 82.1 %82.1 %88.3 %88.3 %
9455 Towne Centre DriveUniversity Towne Center160,444 100.0 %100.0 %100.0 %100.0 %
9514 Towne Centre Drive *University Towne Center70,616 100.0 %100.0 %100.0 %100.0 %
Total San Diego2,876,502 87.9 %88.5 %90.5 %89.9 %
________________________
* Excluded from our Same Store portfolio.







12

Q3 2024 Supplemental Financial Report
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Stabilized Portfolio Occupancy Overview by Region, continued
 Rentable Square FeetOccupied atLeased at
Submarket9/30/20246/30/20249/30/20246/30/2024
San Francisco Bay Area, California
100 Hooper StreetSan Francisco CBD417,914 95.5 %95.5 %100.0 %100.0 %
100 First StreetSan Francisco CBD480,457 93.6 %93.4 %93.6 %94.2 %
303 Second StreetSan Francisco CBD784,658 73.5 %73.2 %73.5 %73.5 %
201 Third StreetSan Francisco CBD346,538 68.2 %68.2 %68.2 %68.2 %
360 Third StreetSan Francisco CBD436,357 66.6 %66.6 %66.6 %66.6 %
250 Brannan StreetSan Francisco CBD100,850 100.0 %100.0 %100.0 %100.0 %
301 Brannan StreetSan Francisco CBD82,834 100.0 %100.0 %100.0 %100.0 %
333 Brannan StreetSan Francisco CBD185,602 100.0 %100.0 %100.0 %100.0 %
345 Brannan StreetSan Francisco CBD110,050 99.7 %99.7 %99.7 %99.7 %
350 Mission StreetSan Francisco CBD455,340 99.7 %99.7 %99.7 %99.7 %
1290-1300 Terra Bella Avenue Silicon Valley114,175 100.0 %100.0 %100.0 %100.0 %
680 E. Middlefield RoadSilicon Valley171,676 100.0 %100.0 %100.0 %100.0 %
690 E. Middlefield RoadSilicon Valley171,215 100.0 %100.0 %100.0 %100.0 %
1701 Page Mill RoadSilicon Valley128,688 100.0 %100.0 %100.0 %100.0 %
3150 Porter DriveSilicon Valley36,886 100.0 %100.0 %100.0 %100.0 %
505 Mathilda AvenueSilicon Valley212,322 100.0 %100.0 %100.0 %100.0 %
555 Mathilda AvenueSilicon Valley212,322 100.0 %100.0 %100.0 %100.0 %
599 Mathilda AvenueSilicon Valley76,031 100.0 %100.0 %100.0 %100.0 %
605 Mathilda AvenueSilicon Valley162,785 100.0 %100.0 %100.0 %100.0 %
345 Oyster Point BoulevardSouth San Francisco40,410 100.0 %100.0 %100.0 %100.0 %
347 Oyster Point BoulevardSouth San Francisco39,780 100.0 %100.0 %100.0 %100.0 %
349 Oyster Point BoulevardSouth San Francisco65,340 100.0 %100.0 %100.0 %100.0 %
350 Oyster Point BoulevardSouth San Francisco234,892 100.0 %100.0 %100.0 %100.0 %
352 Oyster Point BoulevardSouth San Francisco232,215 100.0 %100.0 %100.0 %100.0 %
354 Oyster Point BoulevardSouth San Francisco193,472 100.0 %100.0 %100.0 %100.0 %
4100 Bohannon DriveOther Peninsula47,643 100.0 %100.0 %100.0 %100.0 %
4200 Bohannon DriveOther Peninsula43,600 69.4 %69.4 %69.4 %69.4 %
4300 Bohannon DriveOther Peninsula63,430 63.5 %63.5 %100.0 %100.0 %
4500 Bohannon DriveOther Peninsula63,429 100.0 %100.0 %100.0 %100.0 %
4600 Bohannon DriveOther Peninsula48,413 100.0 %100.0 %100.0 %100.0 %
4700 Bohannon DriveOther Peninsula63,429 100.0 %100.0 %100.0 %100.0 %
900 Jefferson AvenueOther Peninsula228,226 100.0 %100.0 %100.0 %100.0 %
900 Middlefield RoadOther Peninsula119,616 100.0 %54.6 %100.0 %100.0 %
Total San Francisco Bay Area6,170,595 91.1 %90.1 %91.7 %91.8 %


13

Q3 2024 Supplemental Financial Report
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Stabilized Portfolio Occupancy Overview by Region, continued
Rentable Square FeetOccupied atLeased at
Submarket9/30/20246/30/20249/30/20246/30/2024
Seattle, Washington
333 Dexter Avenue NorthLake Union / Denny Regrade618,766 100.0 %100.0 %100.0 %100.0 %
701 N. 34th StreetLake Union / Denny Regrade141,860 44.8 %95.1 %64.5 %100.0 %
801 N. 34th StreetLake Union / Denny Regrade173,615 100.0 %100.0 %100.0 %100.0 %
837 N. 34th StreetLake Union / Denny Regrade112,487 85.6 %94.0 %85.6 %100.0 %
320 Westlake Avenue NorthLake Union / Denny Regrade184,644 94.3 %94.3 %96.1 %94.3 %
321 Terry Avenue NorthLake Union / Denny Regrade135,755 100.0 %100.0 %100.0 %100.0 %
401 Terry Avenue NorthLake Union / Denny Regrade174,530 100.0 %100.0 %100.0 %100.0 %
2001 8th AvenueLake Union / Denny Regrade535,395 19.5 %19.3 %19.5 %19.3 %
601 108th Avenue NEBellevue490,738 98.7 %99.0 %98.7 %99.0 %
10900 NE 4th StreetBellevue428,557 89.5 %89.1 %90.5 %90.5 %
Total Seattle2,996,347 80.4 %83.1 %81.6 %83.7 %
Austin, Texas
200 W. 6th Street *Austin CBD758,975 74.2 %72.3 %80.7 %79.9 %
Total Austin758,975 74.2 %72.3 %80.7 %79.9 %
TOTAL STABILIZED PORTFOLIO17,140,465 84.3 %83.7 %85.8 %85.4 %
________________________
* Excluded from our Same Store portfolio.

Average Residential Occupancy
Quarter-to-DateYear-to-Date
RESIDENTIAL PROPERTIESSubmarketTotal No. of Units9/30/20246/30/20249/30/2024
Los Angeles, California
1550 N. El Centro AvenueHollywood20090.2%91.0%90.6%
6390 De Longpre AvenueHollywood19389.9%91.3%91.2%
San Diego, California
3200 Paseo Village WayDel Mar60893.2%93.8%93.7%
TOTAL RESIDENTIAL PROPERTIES1,00192.0%92.8%92.6%
14

Q3 2024 Supplemental Financial Report
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Information on Leases Commenced (1)
Quarter to Date# of Leases
Square Feet
Weighted
Average Lease
Term (Mo.)
TI/LC
Per Sq.Ft. (2)
TI/LC
Per Sq.Ft. /Year (2)
Changes in
GAAP Rents (3)
Changes in
Cash Rents (3)
NewRenewalNewRenewalTotal
2nd Gen Leasing (4)
14 11 109,470 151,592 261,062 80 $108.03 $16.21 48.3 %22.4 %
1st Gen / Major Repositioning /
In-Process Development & Redevelopment Leasing (4)
— 14,633 — 14,633 153 $187.30 $14.69 
TOTAL15 11 124,103 151,592 275,695 
Year to Date# of LeasesSquare FeetWeighted
Average Lease
Term (Mo.)
TI/LC
Per Sq.Ft. (2)
TI/LC
Per Sq.Ft. /Year (2)
Changes in
GAAP Rents (3)
Changes in
Cash Rents (3)
NewRenewalNewRenewalTotal
2nd Gen Leasing (4)
39 34 307,933 334,626 642,559 62 $63.00 $12.19 21.8 %6.3 %
1st Gen / Major Repositioning /
In-Process Development & Redevelopment Leasing (4)
— 85,499 — 85,499 154 $170.29 $13.27 
TOTAL:45 34 393,432 334,626 728,058 
________________________
(1)Includes 100% of consolidated property partnerships. Excludes leases with a lease term of less than one year. During the three and nine months ended September 30, 2024, 310,763 and 365,019 square feet of leases commenced with a lease term less than one year, respectively. Further excludes a 109,790 square foot short-term lease signed with the successor entity of DermTech. During the second quarter, DermTech rejected its lease and the Company executed the short-term lease to facilitate DermTech’s interim operations.
(2)Includes tenant improvement costs and third-party leasing commissions. Amounts exclude tenant-funded tenant improvements and indirect leasing costs.
(3)Calculated as the change between the expiring GAAP rent and the new GAAP rent and the expiring cash rent and the new cash rent for the same space. Space that was vacant when the property was acquired is excluded from our change in rents calculations to provide a more meaningful market comparison.
(4)Refer to pages 36-38 “Definitions Included in Supplemental.”
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Q3 2024 Supplemental Financial Report
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Information on Leases Executed (1)
Quarter to Date (2)
# of LeasesSquare FeetWeighted
Average Lease
Term (Mo.)
TI/LC
Per Sq.Ft. (3)
TI/LC
Per Sq.Ft. /Year (3)
Changes in
GAAP Rents (4)
Changes in
Cash Rents (4)
Retention
Rates
NewRenewalNewRenewalTotal
2nd Gen Leasing (5)
10 11 63,630 151,592 215,222 66 $72.64 $13.21 26.0 %7.1 %33.3 %
1st Gen / Major Repositioning /
In-Process Development & Redevelopment Leasing (5)
— 11,550 — 11,550 98 $147.40 $18.05 
TOTAL13 11 75,180 151,592 226,772 
Year to Date (6)
# of LeasesSquare FeetWeighted
Average Lease
Term (Mo.)
TI/LC
Per Sq.Ft. (3)
TI/LC
Per Sq.Ft. /Year (3)
Changes in
GAAP Rents (4)
Changes in
Cash Rents (4)
Retention
Rates
NewRenewalNewRenewalTotal
2nd Gen Leasing (5)
47 34 343,617 334,626 678,243 62 $52.26 $10.11 12.8 %(0.6)%29.8 %
1st Gen / Major Repositioning /
In-Process Development & Redevelopment Leasing (5)
— 51,638 — 51,638 91 $113.81 $15.01 
TOTAL:56 34 395,255 334,626 729,881 
________________________
(1)Includes 100% of consolidated property partnerships. Excludes leases with a lease term of less than one year. During the three and nine months ended September 30, 2024, we signed 208,751 and 340,463 square feet of leases with a lease term less than one year, respectively. Further excludes a 109,790 square foot short-term lease signed with the successor entity of DermTech. During the second quarter, DermTech rejected its lease and the Company executed the short-term lease to facilitate DermTech’s interim operations.
(2)During the three months ended September 30, 2024, 12 new leases totaling 73,646 square feet were signed but not commenced as of September 30, 2024.
(3)Includes tenant improvement costs and third-party leasing commissions. Amounts exclude tenant-funded tenant improvements and indirect leasing costs.
(4)Calculated as the change between the expiring GAAP rent and the new GAAP rent and the expiring cash rent and the new cash rent for the same space. Space that was vacant when the property was acquired is excluded from our change in rents calculations to provide a more meaningful market comparison.
(5)Refer to pages 36-38 “Definitions Included in Supplemental.”
(6)During the nine months ended September 30, 2024, 28 new leases totaling 242,983 square feet were signed but not commenced as of September 30, 2024.




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Q3 2024 Supplemental Financial Report
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Stabilized Portfolio Capital Expenditures
($ in thousands)
Q3 2024Q2 2024Q1 2024Q4 2023Q3 2023
2nd Gen Capital Expenditures: (1) (2)
Capital Improvements$11,734 $10,029 $4,962 $12,872 $6,361 
Tenant Improvements & Leasing Commissions 13,928 12,040 6,801 18,539 14,158 
Total$25,662 $22,069 $11,763 $31,411 $20,519 
Average Capital Expenditures to Average NOI Ratio - Trailing Five Quarters11.7 %
Q3 2024Q2 2024Q1 2024Q4 2023Q3 2023
Major Repositioning Capital Expenditures: (1) (3)
Capital Improvements$4,301 $9,940 $7,130 $1,411 $2,092 
Tenant Improvements & Leasing Commissions— — 89 (329)— 
Total $4,301 $9,940 $7,219 $1,082 $2,092 
Q3 2024Q2 2024Q1 2024Q4 2023Q3 2023
1st Gen Capital Expenditures: (1) (4)
Tenant Improvements & Leasing Commissions$1,431 $3,773 $10,063 N/AN/A
Total$1,431 $3,773 $10,063 N/AN/A
________________________
(1)Refer to pages 36-38 “Definitions Included in Supplemental.”
(2)Includes 100% of capital expenditures of consolidated property partnerships.
(3)Prior to Q1 2024, this category was titled “1st Generation (Nonrecurring) Capital Expenditures.” This category represents significant non-recurring capital expenditures for repositioning space that is expected to result in additional revenue generated when the space is re-leased.
(4)New category of capital expenditures beginning in Q1 2024.

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Q3 2024 Supplemental Financial Report
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Stabilized Portfolio Lease Expiration Summary (1)(2)
($ in thousands, except for annualized rent per sq. ft.)
chart-cb5dc66348a44726ac4a.jpg
# of Expiring Leases1176697658464945171128
% of Total Leased Sq. Ft.2.0 %5.4 %13.6 %7.8 %8.3 %8.6 %11.7 %16.1 %8.1 %7.4 %11.0 %
Annualized Base Rent (ABR)
$17,069$33,134$91,231$44,373$71,505$65,556$96,860$145,076$74,380$60,034$98,909
% of Total ABR (3)
2.1 %4.2 %11.4 %5.6 %9.0 %8.2 %12.1 %18.2 %9.3 %7.5 %12.4 %
Annualized Rent per Sq. Ft.$60.10$44.04$48.14$40.91$61.75$54.73$59.47$64.69$66.10$58.00$64.47
________________________
(1)For leases that have been renewed early with existing tenants, the expiration date and annualized base rent information presented takes into consideration the renewed lease terms. Excludes leases not commenced as of September 30, 2024, space leased under month-to-month leases, storage leases, vacant space, leases with a lease term of less than one year, and future lease renewal options not executed as of September 30, 2024.
(2)Adjusting for leasing transactions executed as of September 30, 2024 but not yet commenced, the 2024, 2025, and 2026 expirations would be reduced by 7,623, 64,142, and 156,785 square feet, respectively.
(3)Includes 100% of annualized base rent of consolidated property partnerships.
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Q3 2024 Supplemental Financial Report
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Stabilized Portfolio Lease Expiration Schedule by Region
($ in thousands, except for annualized rent per sq. ft.)
Year
Region# of
Expiring Leases
Total
Square Feet
% of Total
Leased Sq. Ft.
Annualized
Base Rent (1)
% of Total
Annualized
Base Rent
Annualized Rent
per Sq. Ft.
2024Los Angeles56,761 0.4 %$3,455 0.4 %$60.87 
San Diego— — — %— — %— 
San Francisco Bay Area223,522 1.6 %13,456 1.7 %60.20 
Seattle3,727 — %158 — %42.39 
Austin— — — %— — %— 
Total11 284,010 2.0 %$17,069 2.1 %$60.10 
2025Los Angeles38 220,026 1.6 %$9,199 1.2 %$41.81 
San Diego19 219,912 1.6 %9,042 1.1 %41.12 
San Francisco Bay Area120,729 0.9 %8,604 1.1 %71.27 
Seattle11 191,665 1.3 %6,289 0.8 %32.81 
Austin— — — %— — %— 
Total76 752,332 5.4 %$33,134 4.2 %$44.04 
2026Los Angeles27 489,626 3.5 %$20,245 2.5 %$41.35 
San Diego11 160,938 1.2 %8,880 1.1 %55.18 
San Francisco Bay Area18 945,807 6.8 %49,543 6.2 %52.38 
Seattle13 298,687 2.1 %12,563 1.6 %42.06 
Austin— — — %— — %— 
Total69 1,895,058 13.6 %$91,231 11.4 %$48.14 
2027Los Angeles41 743,785 5.4 %$27,767 3.6 %$37.33 
San Diego20 167,423 1.2 %8,026 1.0 %47.94 
San Francisco Bay Area84,355 0.6 %5,179 0.6 %61.40 
Seattle10 89,198 0.6 %3,401 0.4 %38.13 
Austin— — — %— — %— 
Total76 1,084,761 7.8 %$44,373 5.6 %$40.91 
2028Los Angeles25 139,009 1.0 %$7,568 0.9 %$54.44 
San Diego13 220,424 1.6 %12,550 1.6 %56.94 
San Francisco Bay Area11 730,462 5.2 %49,244 6.2 %67.41 
Seattle68,147 0.5 %2,143 0.3 %31.45 
Austin— — — %— — %— 
Total58 1,158,042 8.3 %$71,505 9.0 %$61.75 
2029
and
Beyond
Los Angeles49 1,419,998 10.2 %$81,371 10.2 %$57.30 
San Diego66 1,638,331 11.8 %99,257 12.4 %60.58 
San Francisco Bay Area41 3,450,764 24.8 %257,088 32.2 %74.50 
Seattle28 1,697,982 12.2 %78,027 9.8 %45.95 
Austin12 556,324 3.9 %25,072 3.1 %45.07 
Total196 8,763,399 62.9 %$540,815 67.7 %$61.71 
________________________
(1)Includes 100% of annualized base rent of consolidated property partnerships.
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Q3 2024 Supplemental Financial Report
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Top 20 Tenants
($ in thousands)  
Tenant Name (1)
Region
Annualized Base Rental Revenue (2)
Rentable
Square Feet
Percentage of
Total Annualized Base Rental Revenue
Percentage of
Total Rentable
Square Feet
Year(s) of Significant Lease Expiration(s) (3)
Weighted Average Remaining
Lease Term (Years)
1Global technology companySeattle / San Diego$44,851 849,826 5.6 %5.0 %2032 - 2033 / 20378.8
2Cruise LLCSan Francisco Bay Area35,449 374,618 4.4 %2.2 %20317.2
3Stripe, Inc.San Francisco Bay Area33,110 425,687 4.2 %2.5 %2034 9.8
4
LinkedIn Corporation / Microsoft Corporation (4)
San Francisco Bay Area29,752 663,460 3.7 %3.9 %2024 / 2026 1.7
5Adobe Systems, Inc.San Francisco Bay Area /
Seattle
27,897 522,879 3.5 %3.1 %2027 / 2031 6.6
6Salesforce, Inc.San Francisco Bay Area /
Seattle
24,706 472,988 3.1 %2.8 %2029 - 2030 / 2032 5.6
7Okta, Inc.San Francisco Bay Area24,206 293,001 3.0 %1.7 %2028 4.1
8DoorDash, Inc.San Francisco Bay Area23,842 236,759 3.0 %1.4 %2032 7.3
9Netflix, Inc.Los Angeles21,854 361,388 2.7 %2.1 %20327.8
10Cytokinetics, Inc.San Francisco Bay Area18,167 234,892 2.3 %1.4 %20339.1
11Box, Inc.San Francisco Bay Area16,853 287,680 2.1 %1.7 %2028 3.8
12Neurocrine Biosciences, Inc.San Diego16,365 299,064 2.1 %1.7 %2025 / 2029 / 2031 6.0
13DIRECTV, LLCLos Angeles16,085 532,956 2.0 %3.1 %2026 - 2027 2.9
14Synopsys, Inc.San Francisco Bay Area15,492 342,891 1.9 %2.0 %2030 5.9
15Amazon.comSeattle13,926 340,705 1.7 %2.0 %2025 / 20304.7
16Viacom International, Inc.Los Angeles13,718 220,330 1.7 %1.3 %20284.3
17
Riot Games, Inc. (5)
Los Angeles13,571 203,722 1.7 %1.2 %2024 / 2026 / 20313.5
18Indeed, Inc.Austin13,430 330,394 1.7 %1.9 %203410.3
19Sony Interactive Entertainment, LLCSan Francisco Bay Area13,059 127,760 1.6 %0.7 %20305.5
20Tandem Diabetes Care, Inc. San Diego12,409 143,850 1.6 %0.8 %203510.6
Total Top 20 Tenants$428,742 7,264,850 53.6 %42.5 %6.2
    
    
________________________
(1)Includes subsidiaries of the tenant listed.
(2)The information presented is based upon annualized base rental revenues as of September 30, 2024 and includes 100% of annualized base rental revenues of consolidated property partnerships.
(3)We define significant lease expirations as those with space expiring greater than 25,000 rentable square feet.
(4)The 2024 lease expiration represents 76,031 rentable square feet expiring on October 31, 2024.
(5)The 2024 lease expiration represents 40,236 rentable square feet expiring on November 30, 2024.
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Q3 2024 Supplemental Financial Report
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Tenant Industry Diversification (1)


Annualized Base Rent (2)
Square Feet (3)
chart-c2c6ff6721a04493be6a.jpg chart-7a1b60a42a0b47a4a93a.jpg

________________________
(1)Based on the North American Industry Classification System as of September 30, 2024.
(2)Includes 100% of annualized base rent of consolidated property partnerships.
(3)Based on occupied square footage as of September 30, 2024.
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Q3 2024 Supplemental Financial Report
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2024 Operating Property Acquisitions
($ in millions)
COMPLETED OPERATING PROPERTY ACQUISITIONSSubmarketMonth of
Acquisition
Number of BuildingsRentable Square Feet
Purchase
Price
(1)
1st Quarter
None
2nd Quarter
None
3rd Quarter
12707 & 12777 High Bluff Drive (Junction at Del Mar)Del MarSeptember2103,731 $35.0 
TOTAL2103,731 $35.0 
_______________________ 
(1)Excludes acquisition-related costs.
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Q3 2024 Supplemental Financial Report
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Consolidated Ventures (Noncontrolling Property Partnerships)

PropertyVenture PartnerSubmarketRentable
Square Feet
KRC
Ownership %
100 First Street, San Francisco, CANorges Bank Real Estate ManagementSan Francisco 480,45756%
303 Second Street, San Francisco, CANorges Bank Real Estate ManagementSan Francisco784,65856%
900 Jefferson Avenue and 900 Middlefield Road,
Redwood City, CA (1)
Local developerRedwood City347,84293%
Quarter-to-DateYear-to-Date
Total operating revenues$30,173 $90,707 
Total operating expenses9,198 26,291 
Net Operating Income - Consolidated Ventures (2)(3)
$20,975 $64,416 
Adjustments:
Amortization of deferred revenue related to tenant-funded tenant improvements(433)(1,800)
Net effect of straight-line rents1,035 536 
Lease related adjustments and other(821)475 
Other (3)
— 57 
Cash Net Operating Income - Consolidated Ventures (4)
$20,756 $63,684 
Company's Share of Cash Net Operating Income - Consolidated Ventures (4)
$13,388 $42,073 
____________________
(1)Reflects the KRC ownership percentage at time of agreement. Actual percentage may vary depending on cash flows or promote structure.
(2)For breakout of Net Operating Income by partnership, refer to page 39, Reconciliation of Net Income Available to Common Stockholders to Same Store Net Operating Income.
(3)Includes revenue reversals (recoveries) related to tenant creditworthiness and other.
(4)Please refer to pages 32-34 for Management Statements on non-GAAP supplemental measures.


23


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03
Development


In-Process Development & Redevelopment
Future Development Pipeline


Q3 2024 Supplemental Financial Report
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In-Process Development & Redevelopment
($ in millions)
LocationConstruction Start Date
Estimated Stabilization Date (2)
Estimated Rentable Square Feet
Total Estimated Investment
Total Cash Costs Incurred as of
9/30/2024 (3)(4)
% LeasedTotal Project % Occupied
TENANT IMPROVEMENT (1)
Office / Life Science
San Francisco Bay Area
4400 Bohannon Drive (5)
Other Peninsula4Q 20223Q 202548,000 $55 $41 —%—%
San Diego
4690 Executive Drive (5)
University Towne Center1Q 20223Q 202552,000 25 22 —%—%
TOTAL:100,000 $80 $63 —%—%

UNDER CONSTRUCTIONLocationConstruction Start Date
Estimated Stabilization Date (2)
Estimated Rentable Square FeetTotal Estimated Investment
Total Cash Costs Incurred as of
9/30/2024 (3)
% Leased
Office / Life Science
San Francisco Bay Area
Kilroy Oyster Point - Phase 2South San Francisco2Q 20214Q 2025875,000 $1,000 $758 —%
TOTAL:875,000 $1,000 $758 —%
________________________
(1)Represents projects that have reached cold shell condition and are ready for tenant improvements, which may require additional major base building construction before being placed in service.
(2)For office and retail, represents the earlier of anticipated 95% occupancy date or one year from substantial completion of base building components. For multi-phase projects, interest and carry cost capitalization may cease and recommence driven by various factors, including tenant improvement construction and other tenant related timing or project scope. For projects being redeveloped, redevelopment will occur in phases based on existing lease expiration dates and timing of the tenant improvement build-out.
(3)Represents costs incurred as of September 30, 2024, excluding accrued liabilities recorded in accordance with GAAP.
(4)For redevelopment properties, includes the existing depreciated basis for the buildings to be redeveloped.
(5)Redevelopment property.

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Q3 2024 Supplemental Financial Report
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Future Development Pipeline
($ in millions)
FUTURE DEVELOPMENT PIPELINELocation
Approx. Developable
Square Feet / Resi Units (1)
Total Cash Costs Incurred as of 9/30/2024 (2)
Los Angeles
1633 26th StreetWest Los Angeles190,000$15 
San Diego
Santa Fe Summit South / North56 Corridor600,000 - 650,000116 
2045 Pacific HighwayLittle Italy275,00057 
Kilroy East VillageEast Village1,100 units68 
San Francisco Bay Area
Kilroy Oyster Point - Phases 3 and 4South San Francisco875,000 - 1,000,000232 
Flower MartSOMA2,300,000605 
Seattle
SIX0Denny Regrade925,000 and 650 units189 
Austin
Stadium TowerStadium District / Domain493,00074 
TOTAL:$1,356 
________________________
(1)Represents developable office/life science square feet and/or residential units. The developable square feet, residential units, and scope of projects could change materially from estimated data provided due to one or more of the following: any significant changes in the economy, market conditions, our markets, tenant requirements and demands, construction costs, new supply, regulatory and entitlement processes, or project design.
(2)Represents costs incurred as of September 30, 2024, excluding accrued liabilities recorded in accordance with GAAP.




26


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04
Debt and
Capitalization Data

Capital Structure
Debt Analysis


Q3 2024 Supplemental Financial Report
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Capital Structure
As of September 30, 2024 ($ in thousands)
Shares/Units
Aggregate Principal
Amount (1) or $
Value Equivalent
% of Total Market Capitalization
Stated Rate (2)
Maturity Date
Unsecured Debt
Revolving Credit Facility$— — %5.96 %
7/31/2028 (3)
Term Loan Facility200,000 2.1 %6.16 %
10/3/2027 (4)
Private Placement Senior Notes Series A due 202650,000 0.5 %4.30 %7/18/2026
Private Placement Senior Notes Series B due 2026200,000 2.1 %4.35 %10/18/2026
Private Placement Senior Notes Series A due 2027175,000 1.8 %3.35 %2/17/2027
Private Placement Senior Notes Series B due 202975,000 0.8 %3.45 %2/17/2029
Private Placement Senior Notes due 2031350,000 3.6 %4.27 %1/31/2031
Senior Notes due 2024403,712 4.2 %3.45 %12/15/2024
Senior Notes due 2025400,000 4.1 %4.38 %10/1/2025
Senior Notes due 2028 (5)
400,000 4.1 %4.75 %12/15/2028
Senior Notes due 2029400,000 4.1 %4.25 %8/15/2029
Senior Notes due 2030500,000 5.2 %3.05 %2/15/2030
Senior Notes due 2032 (5)
425,000 4.5 %2.50 %11/15/2032
Senior Notes due 2033 (5)
450,000 4.7 %2.65 %11/15/2033
Senior Notes due 2036400,000 4.1 %6.25 %1/15/2036
$4,428,712 45.9 %3.99 %
Secured Debt (6)
12100,12200, and 12312 W. Olympic Blvd., Los Angeles$153,610 1.6 %3.57 %12/1/2026
320 Westlake Ave. N. and 321 Terry Ave. N., Seattle79,601 0.8 %4.48 %7/1/2027
One Paseo Mixed-Use Campus, San Diego375,000 3.9 %5.90 %8/10/2034
$608,211 6.3 %5.13 %
Total Debt$5,036,923 52.2 %4.13 %
Equity and Noncontrolling Interest in the Operating Partnership (7)
Common limited partnership units outstanding (8)
1,150,574$44,527 0.5 %
Shares of common stock outstanding118,046,6744,568,406 47.3 %
Total Equity and Noncontrolling Interest in the Operating Partnership$4,612,933 47.8 %
Total Market Capitalization$9,649,856 100.0 %
________________________
(1)Represents the gross aggregate principal amount due at maturity before the effect of unamortized deferred financing costs and premiums and discounts.
(2)Our 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 0.900% and 0.950%, respectively, based on our credit rating as of September 30, 2024. All other stated rates are fixed interest rates.
(3)Does not assume the exercise of the Company's two six-month extension options.
(4)The maturity date of the unsecured term loan assumes the exercise of the two twelve-month extensions, at the Company’s election.
(5)Green bond.
(6)The mortgage notes are secured by the properties listed.
(7)Value based on closing share price of $38.70 as of September 30, 2024.
(8)Includes common units of the Operating Partnership not owned by the Company; does not include noncontrolling interests in consolidated property partnerships.
28

Q3 2024 Supplemental Financial Report
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Debt Analysis
As of September 30, 2024 ($ in thousands)
chart-b1a0108f6d294f0899ea.jpg
Total Debt$405,235$406,246$401,317$449,125$400,000$475,000$500,000$350,000$425,000$450,000$375,000$400,000
Weighted Average
Stated Rate
3.45%4.37%4.06%4.79%4.75%4.12%3.05%4.27%2.50%2.65%5.90%—%6.25%
% of Total8%8%8%9%8%9%10%7%8%9%7%—%8%
________________________
(1)The maturity date of the unsecured term loan assumes the exercise of the two twelve-month extensions, at the Company's election.
(2)As of September 30, 2024, there was no outstanding balance on our unsecured revolving credit facility maturing on July 31, 2028, before two six-month extensions, at the Company's election.
29

Q3 2024 Supplemental Financial Report
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Debt Analysis, continued
As of September 30, 2024 ($ in thousands)
NET DEBT TO COMPANY'S SHARE OF EBITDA, AS ADJUSTED RATIOS (1)
9/30/20246/30/20243/31/202412/31/20239/30/2023
Total principal amount of debt$5,036,923 $5,158,432 $5,159,926 $4,961,406 $4,969,869 
Cash and cash equivalents(625,395)(835,893)(855,007)(510,163)(618,794)
Certificates of deposit— — (78,256)(256,581)(252,830)
Net debt$4,411,528 $4,322,539 $4,226,663 $4,194,662 $4,098,245 
Trailing 12-months Company's share of EBITDA, as adjusted (2)
$686,336 $673,269 $672,267 $671,343 $673,324 
Trailing 12-months Company's share of EBITDA, as adjusted less interest income (2)
$642,678 $632,284 $637,945 $648,751 $656,196 
Net debt to Company's share of EBITDA, as adjusted Ratio6.4x6.4x6.3x6.2x6.1x
Net debt to Company's share of EBITDA, as adjusted less interest income Ratio6.9x6.8x6.6x6.5x6.2x
KEY DEBT COVENANTS (3)
Covenant
Actual Performance
as of September 30, 2024
Unsecured Credit and Term Loan Facilities and Private Placement Notes:
Total debt to total asset valueless than 60%33%
Fixed charge coverage ratiogreater than 1.5x3.2x
Unsecured debt ratiogreater than 1.67x3.08x
Unencumbered asset pool debt service coverage greater than 1.75x3.58x
Unsecured Senior Notes due 2024, 2025, 2028, 2029, 2030, 2032, 2033, and 2036:
Total debt to total asset valueless than 60%37%
Interest coveragegreater than 1.5x5.1x
Secured debt to total asset valueless than 40%4%
Unencumbered asset pool value to unsecured debtgreater than 150%282%
________________________
(1)Please refer to pages 32-34 for Management Statements on non-GAAP supplemental measures.
(2)Calculated as the sum of the Company's share of EBITDA, as adjusted for the trailing four quarters. Please refer to page 41 for a reconciliation of GAAP Net Income Available to Common Stockholders to the Company's Share of EBITDA, as adjusted and the Company's Share of EBITDA, as adjusted less interest income.
(3)All covenant ratio titles utilize terms and are calculated as defined in the respective debt and credit agreements.

30


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05
Non-GAAP Supplemental
Measures


Q3 2024 Supplemental Financial Report
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Management Statements on Non-GAAP Supplemental Measures
Included in this section are management’s statements regarding certain non-GAAP financial measures provided in this supplemental financial report and, with respect to Funds From Operations available to common stockholders and common unitholders (“FFO”), in the Company’s earnings release on October 28, 2024 and the reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations.

Net Operating Income:

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

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

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

Same Store Net Operating Income:

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

However, Same Store NOI should not be viewed as an alternative measure of the Company’s financial performance since it does not reflect the operations of the Company’s entire portfolio, nor does it reflect the impact of general and administrative expenses, leasing costs, interest expense, depreciation and amortization costs, other nonproperty income and losses and the level of capital expenditures necessary to maintain the operating performance of the Company’s properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact the Company’s results from operations.
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Q3 2024 Supplemental Financial Report
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Management Statements on Non-GAAP Supplemental Measures, continued
Same Store Cash Net Operating Income:

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

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

EBITDA, as adjusted, Company's Share of EBITDA, as adjusted, and Company's Share of EBITDA, as adjusted less interest income:

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

Net Debt to Company's Share of EBITDA, as adjusted Ratio and Net Debt to Company's Share of EBITDA, as adjusted less interest income Ratio:

Management believes that the ratios of our principal balance of debt, less cash and cash equivalents and certificates of deposit, divided by the Company’s share of EBITDA, as adjusted, as well as the Company's share of EBITDA, as adjusted less interest income are useful supplemental measures of the level of borrowed capital being used to increase the potential return of our real estate investments and proxies for a measure we believe is used by many lenders and rating agencies to evaluate our ability to repay and service our debt obligations. We believe the ratios are beneficial disclosure to investors as supplemental means of evaluating our ability to meet obligations senior to those of our equity holders. Other REITs may use different methodologies for calculating these ratios and, accordingly, the Company’s Net Debt to Company’s Share of EBITDA, as adjusted Ratio and Net Debt to Company's Share of EBITDA, as adjusted less interest income Ratio may not be comparable to other REITs.
33

Q3 2024 Supplemental Financial Report
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Management Statements on Non-GAAP Supplemental Measures, continued
Funds From Operations:

The Company calculates Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of Nareit. The White Paper defines FFO as net income or loss (calculated in accordance with GAAP), excluding 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 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 real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO. Our calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. We also add back net income attributable to noncontrolling common units of the Operating Partnership because we report FFO attributable to common stockholders and common unitholders.

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

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

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

Funds Available for Distribution:

Management believes that Funds Available for Distribution available to common stockholders and common unitholders (“FAD”) is a useful supplemental measure of the Company’s liquidity. The Company computes FAD by adjusting FFO for recurring tenant improvements, leasing commissions, and capital expenditures, amortization of deferred revenue related to tenant-funded tenant improvements, the net effect of straight-line rents, amortization of net above (below) market rents for acquisition properties, non-cash amortization of deferred financing costs and net debt discounts and premiums, non-cash amortization of share-based compensation awards and adjustments for executive retirement obligations, lease related adjustments, and amounts attributable to noncontrolling interests in consolidated property partnerships. FAD provides an additional perspective on the Company’s ability to fund cash needs and make distributions to stockholders by adjusting FFO for the impact of certain cash and non-cash items, as well as adjusting FFO for recurring capital expenditures and leasing costs. Management also believes that FAD provides useful information to the investment community about the Company’s financial position as compared to other REITs since FAD is a liquidity measure used by other REITs. However, other REITs may use different methodologies for calculating FAD and, accordingly, the Company’s FAD may not be comparable to other REITs.
34


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06
Definitions and Reconciliations



Q3 2024 Supplemental Financial Report
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Definitions Included in Supplemental
Annualized Base Rent:
Includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue. Additionally, the underlying leases contain various expense structures including full service gross, modified gross and triple net. Amounts represent percentage of total portfolio annualized contractual base rental revenue.
Capital Expenditures:
Expenditures for capital improvements, tenant improvements costs (excluding tenant-funded tenant improvements), and leasing commissions.
Change in GAAP / Cash Rents (Leases Commenced):
Calculated as the change between GAAP / cash rents for new/renewed leases and the expiring GAAP / cash rents for the same space. May include leases for which re-leasing timing was impacted by the COVID-19 pandemic and restrictions intended to prevent its spread. Excludes leases for which the space was vacant when the property was acquired by the Company.
Change in GAAP / Cash Rents (Leases Executed):
Calculated as the change between GAAP / cash rents for signed leases and the expiring GAAP / cash rents for the same space. May include leases for which re-leasing timing was impacted by the COVID-19 pandemic and restrictions intended to prevent its spread. Excludes leases for which the space was vacant when the property was acquired by the Company.
Estimated Stabilization Date (Development):
Management’s estimation of the earlier of stabilized occupancy (95%) or one year from the date of the cessation of major base building construction activities for office and retail properties and upon substantial completion for residential properties.
FAD Payout Ratio:
Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted stock unitholders) divided by FAD.
First Generation ("1st Gen"):
Space not yet leased at recently completed development and redevelopment properties that have been added to the stabilized portfolio. Capital expenditures for first generation space do not include expenditures for in-process development and redevelopment projects and these costs are not subtracted in our calculation of FAD.
Fixed Charge Coverage Ratio - EBITDA, as adjusted:
Calculated as EBITDA, as adjusted, divided by gross interest expense (excluding amortization of deferred debt costs and debt discounts/premiums) and current year accrued preferred dividends.
Fixed Charge Coverage Ratio - Net Income:
Calculated as net income, divided by gross interest expense (excluding amortization of deferred debt costs and debt discounts/premiums) and current year accrued preferred dividends.
36

Q3 2024 Supplemental Financial Report
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Definitions Included in Supplemental, continued
FFO Payout Ratio:
Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted stock unitholders) divided by FFO attributable to common stockholders and unitholders.
GAAP Effective Rate:
The rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of any discounts/premiums, excluding debt issuance costs.
Gross Lease Types:
Represents leases where the landlord is obligated to pay the tenant's proportionate share of certain operating expenses.
Interest Coverage Ratio:
Calculated as EBITDA, as adjusted, divided by gross interest expense (excluding amortization of deferred debt costs and debt discounts/premiums).
Major Repositioning:
Space for which we are incurring significant non-recurring capital expenditures to reposition and is expected to result in additional revenue generated when re-leased. Capital expenditures for this space are not subtracted in our calculation of FAD.
Net Effect of Straight-Line Rents:
Represents the straight-line rent income recognized during the period offset by cash received during the period that was applied to deferred rents receivable balances for terminated leases and the provision for bad debts recorded for deferred rent receivable balances.
Net Income Payout Ratio:
Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted stock unitholders) divided by net income.
Net Leases Types:
Represents leases where the tenant is obligated to pay their proportionate share of certain operating expenses.
Net Operating Income Margins:
Calculated as net operating income divided by total revenues.
Redevelopment Properties:
Properties for which we expect to spend significant development and construction costs pursuant to a formal plan to change its use.
Rentable Square Feet:
Reflects the latest Building Owners and Managers Association (“BOMA”) measurement. All occupied and leased percentages presented throughout this report are calculated based on rentable square feet at the end of the period(s) presented.
37

Q3 2024 Supplemental Financial Report
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Definitions Included in Supplemental, continued
Retention Rates (Leases Executed):
Calculated as the percentage of space renewed by existing tenants at lease expiration or termination.
Same Store Portfolio:
Our Same Store Portfolio includes all of our properties owned and included in our stabilized portfolio for two comparable reporting periods, i.e., owned and included in our stabilized portfolio as of January 1, 2023 and still owned and included in the stabilized portfolio as of September 30, 2024. It includes our residential portfolio, which consists of our 200-unit residential tower and 193-unit Jardine project in Hollywood, California and 608 residential units at our One Paseo mixed-use project in Del Mar, California. It does not include undeveloped land, development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, completed residential developments not yet stabilized, and properties held-for-sale. We define redevelopment properties as those projects for which we expect to spend significant development and construction costs on existing or acquired buildings pursuant to a formal plan, the intended result of which is a higher economic return on the property.
Same Store Portfolio Rollforward
Number of BuildingsSquare Feet
Same Store Portfolio as of December 31, 202311515,063,419 
Stabilized Development and Redevelopment Properties Added1,151,118 
Remeasurements— (7,394)
Same Store Portfolio as of September 30, 202411916,207,143
Stabilized Development and Redevelopment Properties Excluded from Same Store2829,591
Stabilized Acquisition Properties2103,731 
Stabilized Portfolio as of September 30, 202412317,140,465

Second Generation ("2nd Gen"):
Space at properties in the stabilized portfolio for which capital expenditures are generally recurring in nature or relate to space previously occupied.
Stated Interest Rate:
The rate at which interest expense is recorded per the respective loan documents, excluding the impact of the amortization of any debt discounts/premiums.
Tenant Improvement Phase:
Represents projects that have reached cold shell condition and are ready for tenant improvements, which may require additional major base building construction before being placed in service.
38

Q3 2024 Supplemental Financial Report
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Reconciliation of Net Income Available to Common Stockholders to Same Store Net Operating Income
(unaudited, $ in thousands)
 
Three Months Ended (1)
Nine Months Ended (2)
 9/30/20246/30/20243/31/202412/31/20239/30/20239/30/20249/30/2023
Net Income Available to Common Stockholders$52,378 $49,211 $49,920 $47,284 $52,762 $151,509 $164,957 
Net income attributable to noncontrolling common units of the Operating Partnership509 458 502 471 515 1,469 1,612 
Net income attributable to noncontrolling interests in consolidated property partnerships4,786 4,878 5,278 5,291 5,460 14,942 18,673 
Net Income57,673 54,547 55,700 53,046 58,737 167,920 185,242 
Adjustments:
General and administrative expenses18,066 18,951 17,579 22,078 24,761 54,596 71,356 
Leasing costs2,353 2,119 2,279 1,956 1,852 6,751 4,550 
Depreciation and amortization91,879 87,151 88,031 86,016 85,224 267,061 269,262 
Interest income(9,688)(10,084)(13,190)(10,696)(7,015)(32,962)(11,896)
Interest expense36,408 36,763 38,871 32,325 29,837 112,042 81,891 
Net Operating Income, as defined (3)
196,691 189,447 189,270 184,725 193,396 575,408 600,405 
Wholly-Owned Properties175,716 168,215 167,061 162,348 170,492 510,992 526,594 
Consolidated property partnerships: (4)
100 First Street (5)
6,113 6,073 5,958 6,561 6,782 18,144 18,859 
303 Second Street (5)
10,143 10,467 10,794 10,099 10,243 31,404 37,185 
Crossing/900 (6)
4,719 4,692 5,457 5,717 5,879 14,868 17,767 
Net Operating Income, as defined (3)
196,691 189,447 189,270 184,725 193,396 575,408 600,405 
Non-Same Store Net Operating Income (7)
(8,127)(8,486)(6,578)(20,892)(21,052)(23,191)(21,167)
Same Store Net Operating Income188,564 180,961 182,692 163,833 172,344 552,217 579,238 
Adjustments:
Amortization of deferred revenue related to tenant-funded tenant improvements(3,881)(4,035)(6,190)(5,215)(4,384)(14,106)(14,108)
Net effect of straight-line rents4,193 2,084 5,443 8,140 617 11,720 (11,456)
Amortization of net below market rents(334)(335)(353)(422)(483)(1,022)(3,845)
Lease related adjustments (8)
(5,266)(467)(135)2,296 (805)(5,868)(653)
Other (9)
369 133 (1,206)1,084 432 (704)1,915 
Same Store Cash Net Operating Income$183,645 $178,341 $180,251 $169,716 $167,721 $542,237 $551,091 
   
________________________
(1)For all quarterly periods in 2024, the Same Store Portfolio was comprised of 119 properties. For all quarterly periods in 2023, the Same Store Portfolio was comprised of 115 properties.
(2)Based upon the Same Store Portfolio as of September 30, 2024, which was comprised of 119 properties.
(3)Please refer to page 32-34 for Management Statements on non-GAAP supplemental measures.
(4)Reflects Net Operating Income for all periods presented.
(5)For all periods presented, an unrelated third party entity owned approximately 44% common equity interests in two properties located at 100 First Street and 303 Second Street in San Francisco, CA.
(6)For all periods presented, an unrelated third party entity owned an approximate 7% common equity interest in two properties located at 900 Jefferson Avenue and 900 Middlefield Road in Redwood City, CA.
(7)Includes the results of one office development building added to the stabilized portfolio during the third quarter of 2023, one office development building added to the stabilized portfolio during the fourth quarter of 2023, and our in-process and future development projects.
(8)Includes non-cash adjustments attributable to lease-related matters including GAAP revenue recognition timing differences.
(9)Includes revenue reversals (recoveries) related to tenant creditworthiness and other.
39

Q3 2024 Supplemental Financial Report
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Reconciliation of Net Income Available to Common Stockholders to Same Store Net Operating Income, continued
(unaudited, $ in thousands)
 
Three Months Ended (1)
 6/30/20233/31/202312/31/20229/30/2022
Net Income Available to Common Stockholders$55,587 $56,608 $52,625 $79,757 
Net income attributable to noncontrolling common units of the Operating Partnership537 560 588 664 
Net income attributable to noncontrolling interests in consolidated property partnerships5,151 8,062 6,262 6,239 
Net Income61,275 65,230 59,475 86,660 
Adjustments:
General and administrative expenses22,659 23,936 25,217 23,524 
Leasing costs1,326 1,372 1,404 1,015 
Depreciation and amortization90,362 93,676 91,396 81,140 
Interest income(3,421)(1,460)(1,264)(295)
Interest expense26,383 25,671 23,550 19,982 
Gain on sale of depreciable operating property— — — (17,329)
Net Operating Income, as defined (2)
198,584 208,425 199,778 194,697 
Wholly-Owned Properties176,582 179,500 174,983 170,166 
Consolidated property partnerships: (3)
100 First Street (4)
6,075 6,011 6,116 5,791 
303 Second Street (4)
9,706 17,247 12,702 12,941 
Crossing/900 (5)
6,221 5,667 5,977 5,799 
Net Operating Income, as defined (2)
198,584 208,425 199,778 194,697 
Non-Same Store Net Operating Income (6)
(6,760)(6,866)(16,435)(13,335)
Same Store Net Operating Income191,824 201,559 183,343 181,362 
Adjustments:
Amortization of deferred revenue related to tenant-funded tenant improvements(4,645)(4,893)(4,607)(4,646)
Net effect of straight-line rents(5,269)(5,359)(3,689)(6,992)
Amortization of net below market rents(1,057)(2,305)(2,287)(2,520)
Lease related adjustments (7)
(3,820)4,819 (2,010)(194)
Other (8)
1,002 480 1,008 400 
Same Store Cash Net Operating Income$178,035 $194,301 $171,758 $167,410 
________________________
(1)Same Store Portfolio as of the most recent comparative period. For all quarterly periods in 2023, the Same Store Portfolio was comprised of 119 properties. For all quarterly periods in 2022, the Same Store Portfolio was comprised of 115 properties.
(2)Please refer to page 32-34 for a Management Statements on non-GAAP supplemental measures.
(3)Reflects Net Operating Income for all periods presented.
(4)For all periods presented, an unrelated third party entity owned approximately 44% common equity interests in two properties located at 100 First Street and 303 Second Street in San Francisco, CA.
(5)For all periods presented, an unrelated third party entity owned an approximate 7% common equity interest in two properties located at 900 Jefferson Avenue and 900 Middlefield Road in Redwood City.
(6)Includes the results of one office development building added to the stabilized portfolio during the third quarter of 2023, one office development building added to the stabilized portfolio during the fourth quarter of 2023, and our in-process and future development projects.
(7)Includes non-cash adjustments attributable to lease-related matters including GAAP revenue recognition timing differences.
(8)Includes revenue reversals (recoveries) related to tenant creditworthiness and other.
40

Q3 2024 Supplemental Financial Report
kilroy_logoxsupplementalrea.jpg
Reconciliation of Net Income Available to Common Stockholders to Company's Share of EBITDA, as adjusted
(unaudited, $ in thousands)

 Three Months Ended
 9/30/20246/30/20243/31/202412/31/20239/30/2023
Net Income Available to Common Stockholders$52,378 $49,211 $49,920 $47,284 $52,762 
Interest expense36,408 36,763 38,871 32,325 29,837 
Depreciation and amortization91,879 87,151 88,031 86,016 85,224 
Net income attributable to noncontrolling common units of the Operating Partnership509 458 502 471 515 
Net income attributable to noncontrolling interests in consolidated property partnerships4,786 4,878 5,278 5,291 5,460 
EBITDA, as adjusted (1)
185,960 178,461 182,602 171,387 173,798 
EBITDA, as adjusted (1), attributable to noncontrolling interests in consolidated property partnerships
(7,485)(7,601)(8,660)(8,328)(8,390)
Company's share of EBITDA, as adjusted (1)
178,475 170,860 173,942 163,059 165,408 
Interest income(9,688)(10,084)(13,190)(10,696)(7,015)
Company's share of EBITDA, as adjusted less interest income (1)
$168,787 $160,776 $160,752 $152,363 $158,393 
________________________
(1)Please refer to pages 32-34 for Management Statements on non-GAAP supplemental measures.

41

Q3 2024 Supplemental Financial Report
kilroy_logoxsupplementalrea.jpg
Reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution
(unaudited, $ in thousands)
 Three Months EndedNine Months Ended September 30,
 9/30/20246/30/20243/31/202412/31/20239/30/202320242023
GAAP Net Cash Provided by Operating Activities
$176,350 $88,693 $167,869 $110,223 $208,816 $432,912 $492,366 
Adjustments:
Recurring tenant improvements, leasing commissions and capital expenditures(25,662)(22,069)(11,763)(31,411)(20,519)(59,494)(56,135)
Depreciation of non-real estate furniture, fixtures and equipment(1,636)(1,562)(1,571)(1,614)(1,706)(4,769)(5,600)
Net changes in operating assets and liabilities (1)
(46,785)55,471 (21,554)39,064 (58,450)(12,868)(37,248)
Noncontrolling interests in consolidated property partnerships share of FFO and FAD
(5,262)(5,634)(7,553)(6,705)(6,246)(18,449)(22,852)
Cash adjustments related to investing and financing activities(185)(65)(100)(29)(3,197)(350)246 
Funds Available for Distribution (2)
$96,820 $114,834 $125,328 $109,528 $118,698 $336,982 $370,777 
  
_______________________
(1)Primarily includes changes in the following assets and liabilities: marketable securities, current receivables, prepaid expenses and other assets, accounts payable, accrued expenses and other liabilities, and rents received in advance and tenant security deposits. 
(2)Please refer to page 32-34 for Management Statements on non-GAAP supplemental measures.

42


a240105_kilroyxsupplementaa.jpg

Exhibit 99.2
 kilroylogoa02.jpg


Contact:FOR RELEASE:
Jeffrey KuehlingOctober 28, 2024
Executive Vice President,
Chief Financial Officer
(310) 481-8440
or
Taylor Friend
Senior Vice President,
Capital Markets and Treasurer
(310) 481-8574
 

KILROY REALTY CORPORATION REPORTS
THIRD QUARTER FINANCIAL RESULTS
---------------

LOS ANGELES, October 28, 2024 - Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its third quarter ended September 30, 2024.

Financial Results
Revenues grew 2.2% to $289.9 million for the quarter ended September 30, 2024, as compared to $283.6 million for the quarter ended September 30, 2023
Net income available to common stockholders of $0.44 per diluted share, as compared to $0.45 per diluted share for the quarter ended September 30, 2023
Funds from operations available to common stockholders and unitholders (“FFO”) of $140.4 million, or $1.17 per diluted share, an increase of 4.5% as compared to $134.0 million, or $1.12 per diluted share, for the quarter ended September 30, 2023

“I’m pleased to report on a strong quarter of execution across our platform as we continue to navigate the recovery that is taking hold in our markets,” commented Angela Aman, CEO. “In addition to solid third quarter leasing activity, we have also been active on the capital allocation front, acquiring a small office campus located strategically adjacent to our One Paseo mixed-use project in San Diego.”

Leasing and Occupancy
Stabilized portfolio was 84.3% occupied and 85.8% leased at September 30, 2024
During the quarter ended September 30, 2024, signed approximately 436,000 square feet of leases, comprised of 48,000 square feet of new leasing on previously vacant space, 38,000 square feet of new leasing on currently occupied space, and 350,000 square feet of renewal leasing
Includes 209,000 square feet of short-term leasing, primarily comprised of 198,000 square feet of short-term renewal leasing
During the quarter ended September 30, 2024, DermTech, which filed for bankruptcy during the quarter ended June 30, 2024, rejected its lease and Kilroy executed a 110,000 square foot short-term
1



lease with the successor entity to facilitate DermTech’s interim operations. This lease has been excluded from the leasing productivity statistics above
During the quarter ended September 30, 2024, GAAP rents on signed leases increased 26.0% and cash rents increased 7.1% from prior levels on second generation leasing, excluding short-term leasing

Acquisition Activity
In September, completed the acquisition of Junction at Del Mar, an approximately 104,000 square foot office property, comprised of two buildings in the Del Mar submarket of San Diego, for $35.0 million. The buildings, which are located adjacent to the Company’s One Paseo mixed-use project, are 96% leased with a weighted average lease term of 4.7 years
Balance Sheet / Liquidity
In September, repaid the full amount outstanding on the $120.0 million term loan, which had an initial maturity date of October 3, 2024
As of September 30, 2024, the Company had approximately $1.7 billion of total liquidity comprised of approximately $0.6 billion of cash and approximately $1.1 billion available under the fully undrawn unsecured revolving credit facility

Dividend
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 $2.16
The dividend was paid on October 9, 2024 to stockholders of record on September 30, 2024 (the ex-dividend date)


2



Net Income Available to Common Stockholders / FFO Guidance and Outlook
The Company is providing an updated Nareit-defined FFO per diluted share guidance for the full year 2024 of $4.38 to $4.44 per share, with a midpoint of $4.41 per share.
Full Year 2024 Range
as of July 2024
Full Year 2024 Range
as of October 2024
Low EndHigh EndLow EndHigh End
$ and shares/units in thousands, except per share/unit amounts
Net income available to common stockholders per share - diluted$1.50 $1.59 $1.61 $1.66 
Weighted average common shares outstanding - diluted (1)
118,000 118,000 118,150 118,150 
Net income available to common stockholders$177,000 $188,000 $190,000 $196,000 
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership1,800 1,900 1,900 2,000 
Net income attributable to noncontrolling interests in consolidated property partnerships20,500 21,000 20,250 20,750 
Depreciation and amortization of real estate assets338,000 339,000 346,000 347,000 
Gains on sales of depreciable real estate— — — — 
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships(31,500)(32,000)(31,500)(32,000)
Funds From Operations (2)
$505,800 $517,900 $526,650 $533,750 
Weighted average common shares/units outstanding – diluted (3)
120,200 120,200 120,250 120,250 
Funds From Operations per common share/unit – diluted (3)
$4.21 $4.31 $4.38 $4.44 

Key AssumptionsJuly 2024 AssumptionsOctober 2024 Assumptions
Change in same store cash NOI (4)
(3.0%) to (4.0%)(1.5%) to (2.0%)
Average full year occupancy82.75% to 83.75%83.75% to 84.25%
General and administrative expenses$72 million to $80 million$74 million to $76 million
Total development spending (5)
$225 million to $275 million$250 million to $275 million
Weighted average common shares/units outstanding – diluted
(in thousands) (3)
120,200120,225
 ________________________
(1)Calculated based on estimated weighted average shares outstanding, including non-participating share-based awards and the dilutive impact of contingently issuable shares..
(2)See management statement for Funds From Operations at end of release.
(3)Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, and the dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.
(4)See management statement for Same Store Cash Net Operating Income on page 32 of our Supplemental Financial Report furnished on Form 8-K with this press release.
(5)Remaining 2024 development spending is $50 million to $75 million.

The Company’s guidance estimates for the full year 2024, and the reconciliation of net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this press release, reflect management’s views on current and future market conditions, including assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this press release. These guidance estimates do not include the impact on the Company’s operating results from potential future acquisitions, dispositions (including any associated gains or losses), capital markets activity, impairment charges, or any events outside of the Company’s control, as the timing and magnitude 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 materially from these estimates.

3



Conference Call and Audio Webcast
The Company’s management will discuss third quarter results and the current business environment during the Company’s October 29, 2024 earnings 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, register by using the following link, https://www.netroadshow.com/events/login?show=f1c41247&confId=58186. Those interested in listening via the Internet can access the conference call at https://events.q4inc.com/attendee/193901324. It may be necessary to download audio software to hear the conference call.

About Kilroy Realty Corporation

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

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

As of September 30, 2024, Kilroy’s stabilized portfolio totaled approximately 17.1 million square feet of primarily office and life science space that was 84.3% occupied and 85.8% leased. The Company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.0%. In addition, the Company had two life science redevelopment projects in the tenant improvement phase totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.

A Leader in Sustainability and Commitment to Corporate Social Responsibility
Kilroy has a longstanding commitment to sustainability and continues to be a recognized leader in our sector. For over a decade, the Company and its sustainability initiatives have been recognized with numerous honors, including earning the GRESB five star rating and being named a sector and regional leader in the Americas. Other honors have included the Nareit Leader in the Light Award, being listed on the Dow Jones Sustainability World Index, being named ENERGY STAR Partner of the Year, and receiving the ENERGY STAR highest honor of Sustained Excellence.

Kilroy is proud to have achieved carbon neutral operations across our portfolio since 2020. The Company also has a longstanding commitment to maintain high levels of LEED, Fitwel, and ENERGY STAR certifications across the portfolio.

A significant part of the Company’s foundation is its commitment to enhancing employee growth, satisfaction, and wellness while maintaining a diverse and thriving culture. For four consecutive years, the Company has been named to Bloomberg’s Gender Equality Index, which recognizes companies committed to supporting gender equality through policy development, representation, and transparency.

More information is available at http://www.kilroyrealty.com.


4



Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results, and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California, Texas, and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the entertainment 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 our business and financial performance, see the factors included under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2023, and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.
5



KILROY REALTY CORPORATION
SUMMARY OF QUARTERLY RESULTS
(unaudited; in thousands, except per share data)

Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Revenues$289,938 $283,594 $849,250$860,678
Net income available to common stockholders$52,378 $52,762 $151,509$164,957
Weighted average common shares outstanding – basic117,830 117,185 117,516117,133
Weighted average common shares outstanding – diluted118,244 117,495 117,955117,411
Net income available to common stockholders per share – basic $0.44 $0.45 $1.27$1.40
Net income available to common stockholders per share – diluted$0.44 $0.45 $1.27$1.40
Funds From Operations (1)(2)
$140,448 $134,047 $406,758$421,859
Weighted average common shares/units outstanding – basic (3)
119,702 118,934 119,798118,894
Weighted average common shares/units outstanding – diluted (4)
120,115 119,245 120,237119,172
Funds From Operations per common share/unit – basic (2)
$1.17 $1.13 $3.40$3.55
Funds From Operations per common share/unit – diluted (2)
$1.17 $1.12 $3.38$3.54
Common shares outstanding at end of period118,047117,240
Common partnership units outstanding at end of period1,1511,151
Total common shares and units outstanding at end of period119,198118,391
 September 30, 2024September 30, 2023
Stabilized office portfolio occupancy rates: (5)
Los Angeles76.7 %81.2 %
San Diego87.9 %86.1 %
San Francisco Bay Area91.1 %91.1 %
Seattle80.4 %83.5 %
Austin74.2 %— %
Weighted average total84.3 %86.2 %
Total square feet of stabilized office properties owned at end of period: (5)
Los Angeles4,3384,345
San Diego2,8772,770
San Francisco Bay Area6,1716,170
Seattle2,9963,000
Austin759
Total17,14116,285
________________________
(1)Reconciliation of Net income available to common stockholders to Funds From Operations available to common stockholders and unitholders and management statement on Funds From Operations are included after the Consolidated Statements of Operations.
(2)Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.
(3)Calculated based on weighted average shares outstanding, including participating share-based awards (i.e. nonvested stock and certain time-based restricted stock units) and assuming the exchange of all common limited partnership units outstanding.
(4)Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.
(5)Occupancy percentages and total square feet reported are based on the Company’s stabilized office portfolio for the periods presented.
6



KILROY REALTY CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited; in thousands)
 September 30, 2024December 31, 2023
ASSETS
REAL ESTATE ASSETS:
Land and improvements$1,750,820 $1,743,170 
Buildings and improvements8,573,332 8,463,674 
Undeveloped land and construction in progress2,254,628 2,034,804 
Total real estate assets held for investment12,578,780 12,241,648 
Accumulated depreciation and amortization(2,747,494)(2,518,304)
Total real estate assets held for investment, net9,831,286 9,723,344 
Cash and cash equivalents625,395 510,163 
Marketable securities27,144 284,670 
Current receivables, net11,218 13,609 
Deferred rent receivables, net455,613 460,979 
Deferred leasing costs and acquisition-related intangible assets, net226,991 229,705 
Right of use ground lease assets129,492 125,506 
Prepaid expenses and other assets, net73,495 53,069 
TOTAL ASSETS$11,380,634 $11,401,045 
LIABILITIES AND EQUITY
LIABILITIES:
Secured debt, net$599,478 $603,225 
Unsecured debt, net 4,401,678 4,325,153 
Accounts payable, accrued expenses and other liabilities354,785 371,179 
Ground lease liabilities128,606 124,353 
Accrued dividends and distributions64,844 64,440 
Deferred revenue and acquisition-related intangible liabilities, net151,670 173,638 
Rents received in advance and tenant security deposits71,033 79,364 
Total liabilities5,772,094 5,741,352 
EQUITY:
Stockholders’ Equity
Common stock1,181 1,173 
Additional paid-in capital5,203,195 5,205,839 
Retained earnings175,962 221,149 
Total stockholders’ equity5,380,338 5,428,161 
Noncontrolling Interests
Common units of the Operating Partnership52,441 53,275 
Noncontrolling interests in consolidated property partnerships175,761 178,257 
Total noncontrolling interests228,202 231,532 
Total equity5,608,540 5,659,693 
TOTAL LIABILITIES AND EQUITY$11,380,634 $11,401,045 

7



KILROY REALTY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except per share data)

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
REVENUES
Rental income$285,951 $280,681 $836,760 $852,094 
Other property income3,987 2,913 12,490 8,584 
Total revenues289,938 283,594 849,250 860,678 
EXPENSES
Property expenses63,593 59,445 180,192 168,233 
Real estate taxes26,677 28,363 84,925 84,868 
Ground leases2,977 2,390 8,725 7,172 
General and administrative expenses (1)
18,066 24,761 54,596 71,356 
Leasing costs2,353 1,852 6,751 4,550 
Depreciation and amortization91,879 85,224 267,061 269,262 
Total expenses205,545 202,035 602,250 605,441 
OTHER INCOME (EXPENSES)
Interest income9,688 7,015 32,962 11,896 
Interest expense(36,408)(29,837)(112,042)(81,891)
Total other expenses(26,720)(22,822)(79,080)(69,995)
NET INCOME57,673 58,737 167,920 185,242 
Net income attributable to noncontrolling common units of the Operating Partnership(509)(515)(1,469)(1,612)
Net income attributable to noncontrolling interests in consolidated property partnerships(4,786)(5,460)(14,942)(18,673)
Total income attributable to noncontrolling interests(5,295)(5,975)(16,411)(20,285)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$52,378 $52,762 $151,509 $164,957 
Weighted average shares of common stock outstanding – basic117,830 117,185 117,516 117,133 
Weighted average shares of common stock outstanding – diluted118,244 117,495 117,955 117,411 
Net income available to common stockholders per share – basic$0.44 $0.45 $1.27 $1.40 
Net income available to common stockholders per share – diluted$0.44 $0.45 $1.27 $1.40 
________________________
(1)The three and nine months ended September 30, 2023 includes $5.8 million and $12.1 million, respectively, of retirement costs for our former CEO and former President, primarily comprised of accelerated stock compensation expense.
8



KILROY REALTY CORPORATION
FUNDS FROM OPERATIONS
(unaudited; in thousands, except per share data)
 
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Net income available to common stockholders$52,378 $52,762 $151,509 $164,957 
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership509 515 1,469 1,612 
Net income attributable to noncontrolling interests in consolidated property partnerships4,786 5,460 14,942 18,673 
Depreciation and amortization of real estate assets90,243 83,518 262,292 263,662 
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships(7,468)(8,208)(23,454)(27,045)
Funds From Operations(1)(2)(3)
$140,448 $134,047 $406,758 $421,859 
Weighted average common shares/units outstanding – basic (4)
119,702 118,934 119,798 118,894 
Weighted average common shares/units outstanding – diluted (5)
120,115 119,245 120,237 119,172 
Funds From Operations per common share/unit – basic (2)
$1.17 $1.13 $3.40 $3.55 
Funds From Operations per common share/unit – diluted (2)
$1.17 $1.12 $3.38 $3.54 
 ________________________
(1)We calculate Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of Nareit. The White Paper defines FFO as net income or loss (calculated in accordance with GAAP), excluding 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 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 real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO. Our calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. We also add back net income attributable to noncontrolling common units of the Operating Partnership because we report FFO attributable to common stockholders and common unitholders.

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

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

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

(3)FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of $4.2 million and $4.9 million for the three months ended September 30, 2024 and 2023, respectively, and $15.1 million and $15.0 million for the nine months ended September 30, 2024 and 2023, respectively.

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

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


9

v3.24.3
Cover Page Cover Page
Oct. 28, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 28, 2024
Entity Registrant Name KILROY REALTY CORP
Entity Incorporation, State or Country Code MD
Entity File Number 001-12675
Entity Tax Identification Number 95-4598246
Entity Central Index Key 0001025996
Amendment Flag false
Entity Address, Address Line One 12200 W. Olympic Boulevard
Entity Address, Address Line Two Suite 200
Entity Address, City or Town Los Angeles
Entity Address, State or Province CA
Entity Address, Postal Zip Code 90064
City Area Code 310
Local Phone Number 481-8400
Title of 12(b) Security Common Stock, $.01 par value
Security Exchange Name NYSE
Trading Symbol KRC
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false

Kilroy Realty (NYSE:KRC)
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Kilroy Realty (NYSE:KRC)
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