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Kilroy Realty Supplemental Financial Report Q2 2026 Kilroy Oyster Point, South San Francisco, CA
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KILROY REALTY CORPORATION REPORTS SECOND QUARTER FINANCIAL AND OPERATIONAL RESULTS --------------- LOS ANGELES, July 27, 2026 - Kilroy Realty Corporation (NYSE: KRC) (“Kilroy” or the “Company”) today reported financial and operational results for the second quarter ended June 30, 2026. “Our second quarter results highlight continuing improvement in commercial real estate fundamentals across our West Coast markets, as we work to capitalize on growing market demand against a backdrop of moderating high-quality supply,” commented Angela Aman, Chief Executive Officer. “During the second quarter, we executed nearly 400,000 square feet of new and renewal leases, with re-leasing spreads on comparable second-generation space of 27% and 16% on a GAAP and cash basis, respectively, excluding leases signed on space vacant for more than a year. In addition, we continued to enhance our strategic focus and financial flexibility, closing on approximately $200.0 million of previously announced residential dispositions and recasting and expanding our unsecured credit facilities.” Financial Results • Revenues of $272.4 million for the quarter ended June 30, 2026, as compared to $289.9 million for the quarter ended June 30, 2025 • Net income available to common stockholders of $19.9 million, or $0.17 per diluted share, for the quarter ended June 30, 2026 , as compared to $68.4 million, or $0.57 per diluted share, for the quarter ended June 30, 2025 • Funds from operations (“FFO”) of $109.3 million, or $0.92 per diluted share, for the quarter ended June 30, 2026, as compared to $135.9 million, or $1.13 per diluted share, for the quarter ended June 30, 2025 Leasing and Occupancy • Stabilized Portfolio was 77.0% occupied and 81.5% leased at June 30, 2026, representing 450 basis points of leases signed but not yet commenced ◦ Excluding Kilroy Oyster Point Phase 2 (“KOP 2”), the Stabilized Portfolio was 80.8% occupied and 83.3% leased at June 30, 2026, representing 250 basis points of leases signed but not yet commenced • During the quarter, signed approximately 376,000 square feet of leases ◦ Leasing activity was comprised of 226,000 square feet of new leasing on previously vacant space, 7,000 square feet of new leasing on currently occupied space, and 143,000 square feet of renewal leasing ▪ New leasing on previously vacant space included an approximately 38,000-square-foot lease with Olema Pharmaceuticals at KOP 2 ▪ Leasing activity during the quarter included approximately 40,000 square feet of short-term leasing • GAAP and cash rents on leases signed during the quarter increased 21.0% and 6.1%, respectively, from prior levels on Second Generation leasing, excluding short-term leasing ◦ Excluding leases signed on space vacant for more than 12 months, GAAP and cash rents on leases signed during the quarter increased 27.3% and 15.6%, respectively Capital Recycling Activity • In April, completed the sale of the 200-unit Columbia Square Living residential tower and the 193-unit Jardine residential tower in the Hollywood submarket of Los Angeles, for gross sales proceeds of $202.0 million Where Innovation Works i
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Balance Sheet / Liquidity • In April, repaid the outstanding $50.0 million of 4.300% Private Placement Senior Notes Series A due July 2026, at par • In June, amended and restated the terms of the unsecured revolving credit and term loan facilities, increasing the borrowing capacity of the unsecured revolving credit facility from $1.10 billion to $1.25 billion and the unsecured term loan facility from $200.0 million to $250.0 million. The additional $50.0 million of term loan capacity consists of delayed-draw commitments that may be drawn upon through June 11, 2027. The maturity date of the unsecured revolving credit facility was extended to July 31, 2030, which may be further extended by two six-month periods. Additionally, the maturity date of the term loan facility was extended to July 31, 2031 Dividend • The Board of Directors 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 per share. The dividend was paid on July 8, 2026 to stockholders of record on June 30, 2026 (the ex-dividend date) Recent Developments • In July, repaid the outstanding $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026, at par Where Innovation Works ii
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Net Income Available to Common Stockholders / FFO Guidance The Company is affirming Nareit-defined FFO per share guidance for the full year 2026 of $3.49 to $3.63 per diluted share. The table below reflects key assumptions for 2026 guidance. Key Assumptions Current Assumptions (1) Average full year occupancy 76.5% to 78.0% Average full year occupancy excluding KOP 2 80.5% to 81.5% Same Property Cash Net Operating Income (“NOI”) growth (2) 0.25% to 1.25% NOI from Development Properties (3) $(22.5) to $(24.0) million Non-Cash GAAP NOI adjustments (2) (4) $13.0 to $15.0 million GAAP lease termination fee income $3.0 to $4.5 million General and administrative and Leasing costs $(87.5) to $(89.5) million Interest income $2.0 to $3.0 million Gross interest expense $(208.0) to $(209.5) million Capitalized interest (5) $48.5 to $49.5 million Total development spending (6) +/- $150.0 million Operating property dispositions $347.5 to $500.0 million Current Full Year 2026 Range Low End High End $ and shares/units in thousands, except per share/unit amounts Net income available to common stockholders per share - diluted $ 0.08 $ 0.22 Weighted average common shares outstanding - diluted (7) 118,100 118,100 Net income available to common stockholders $ 9,055 $ 25,743 Adjustments: Net income attributable to noncontrolling common units of the Operating Partnership 300 300 Net income attributable to noncontrolling interests in consolidated property partnerships 17,000 17,000 Depreciation and amortization of real estate assets 379,400 379,400 Gain on sale of depreciable operating property (23,525) (23,525) Impairment of real estate assets 61,778 61,778 Funds From Operations attributable to noncontrolling interests in consolidated property partnerships (28,000) (28,000) Funds From Operations (2) $ 416,008 $ 432,696 Weighted average common shares/units outstanding – diluted (8) 119,200 119,200 Nareit Funds From Operations per common share/unit – diluted (2) $ 3.49 $ 3.63 ________________________ (1) All current assumptions remain consistent with those provided in April 2026, except for Total development spending, which has been revised to +/- $150.0 million from the previously estimated range of $150.0 to $200.0 million. (2) For additional information, please refer to pages 36-38 “Management Statements on Non-GAAP Supplemental Measures”. (3) NOI from Development Properties is primarily attributable to the Company’s KOP 2 project. Guidance assumes the continued capitalization of the Company’s Flower Mart project through December 2026. Where Innovation Works iii
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(4) Non-Cash GAAP NOI adjustments include the following items: Deferred income and lease incentives, net, Amortization of deferred revenue related to tenant-funded tenant improvements, Straight-line rents, net, Amortization of net below market rents, Deferred settlement and restoration fee income, and Other. (5) Capitalized interest guidance assumes the continued capitalization of the Company’s Flower Mart project through December 2026. (6) Total development spending includes recently stabilized, in-process, and future development projects. (7) Calculated based on estimated weighted average shares outstanding, including non-participating share-based awards and the dilutive impact of contingently issuable shares. (8) Calculated based on the weighted average shares outstanding, including participating and non-participating share-based awards, and the dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders. The Company’s guidance estimates for the full year 2026, 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 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 second quarter results and the current business environment during the Company’s July 28, 2026 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://events.q4inc.com/analyst/213776497?pwd=miK0Lhqd. Those interested in listening via the Internet can access the conference call at https://events.q4inc.com/attendee/213776497. It may be necessary to download audio software to hear the conference call. Where Innovation Works iv
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Corporate Data & Financial Highlights Company Background 2 Financial Highlights 3 Consolidated Balance Sheets 4 Consolidated Statements of Operations 5 Funds From Operations & Funds Available for Distribution 6 Supplemental Income Statement Detail 7 Net Operating Income 8 Same Property Net Operating Income Analysis (Cash Basis) 9 EBITDA, EBITDAre, and Adjusted EBITDAre 10 Portfolio Data Stabilized Portfolio Occupancy Overview by Region 12-17 Leases Executed 18 Stabilized Portfolio Capital Expenditures 19 Stabilized Portfolio Lease Expirations 20-21 Top 20 Tenants 22 Tenant Industry Diversification 23 2026 Acquisitions 24 2026 Dispositions and Assets Under Contract 25 Consolidated Ventures (Noncontrolling Property Partnerships) 26 Development Stabilized Development & Redevelopment Projects 28 In-Process Development & Redevelopment Projects 29 Future Development Pipeline 30 Debt & Capitalization Data Capital Structure 32 Debt Maturities 33 Debt Covenants & Leverage Ratios 34 Non-GAAP Supplemental Measures 36-38 Definitions & Reconciliations 40-46 Where Innovation Works v 350 Mission, San Francisco, CA Table of Contents
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01 Corporate Data & Financial Highlights – Company Background – Financial Highlights – Consolidated Balance Sheets – Consolidated Statements of Operations – Funds From Operations & Funds Available for Distribution – Supplemental Income Statement Detail – Net Operating Income – Same Property Net Operating Income Analysis (Cash Basis) – EBITDA, EBITDAre, and Adjusted EBITDAre The Post at Indeed Tower, Austin, TX
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Investor Relations 12200 W. Olympic Blvd., Suite 200 Los Angeles, CA 90064 (310) 481-8400 Web: www.kilroyrealty.com E-mail: investorrelations@kilroyrealty.com Board of Directors Gary R. Stevenson Chair Angela M. Aman Edward F. Brennan, PhD Daryl J. Carter Jolie A. Hunt David A. Kieske Cia Buckley Marakovits Louisa G. Ritter Executive and Senior Management Team Angela M. Aman Chief Executive Officer Justin W. Smart President Jeffrey R. Kuehling EVP, Chief Financial Officer and Treasurer A. Robert Paratte EVP, Chief Leasing Officer Sherrie S. Schwartz EVP, Chief Human Resources Officer Lauren N. Stadler EVP, General Counsel and Secretary Eliott L. Trencher EVP, Chief Investment Officer Chandni Jalan SVP, Chief Accounting Officer Equity Research Coverage Barclays Brendan Lynch (212) 526-9428 BofA Securities Jana Galan (646) 855-5042 BMO Capital Markets Corp. John P. Kim (212) 885-4115 BTIG Thomas Catherwood (212) 738-6140 Citigroup Investment Research Seth Bergey (212) 816-2066 Deutsche Bank Securities, Inc. Peter Abramowitz (212) 250-9504 Evercore ISI Steve Sakwa (212) 446-9462 Goldman Sachs & Co. LLC Caitlin Burrows (212) 902-4736 Green Street Advisors Dylan Burzinski (949) 640-8780 Jefferies LLC Joe Dickstein (212) 778-8771 J.P. Morgan Anthony Paolone (212) 622-6682 Keybanc Capital Markets Upal Rana (917) 368-2316 Mizuho Securities USA LLC Vikram Malhotra (212) 282-3827 RBC Capital Markets Mike Carroll (440) 715-2649 Scotiabank Nicholas Yulico (212) 225-6904 Wells Fargo Blaine Heck (410) 662-2556 Wolfe Research Ally Yaseen (646) 582-9253 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. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 2 Company Background Stabilized Office & Life Science Portfolio 17.1M Kilroy Realty Corporation (NYSE: KRC) is a publicly traded real estate investment trust and member of the S&P MidCap 400 Index. The Company owns, manages, develops, and acquires real estate assets consisting primarily of premier office and life science properties in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin. 77.0% occupied leased 81.5% 123 buildings square feet at June 30, 2026 450 bps leased but not yet occupied 376 thousand square feet of leases executed in 2Q 2026
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Three Months Ended Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 INCOME STATEMENT ITEMS: Revenues $ 272,371 $ 270,053 $ 272,187 $ 279,744 $ 289,892 $ 542,424 $ 560,736 Lease Termination Fees 364 398 1,541 309 10,754 762 11,260 Capitalized Interest and Debt Costs 11,632 13,991 20,632 22,574 21,333 25,623 41,881 Capitalized Internal Overhead Costs (1) 3,852 3,977 4,120 4,682 3,807 7,829 8,441 Other Capitalized Development Costs (2) 1,554 3,190 6,382 7,353 5,505 4,744 10,479 Non-Cash Amortization of Share-Based Compensation Awards 3,079 4,869 5,145 5,436 4,582 7,948 8,509 EARNINGS METRICS: Net Income (Loss) Available to Common Stockholders $ 19,905 $ (19,267) $ 12,444 $ 156,220 $ 68,449 $ 638 $ 107,457 Net Operating Income (3) 180,293 178,403 176,426 188,775 190,779 358,696 371,018 EBITDAre (4) 159,986 156,406 158,139 171,561 181,500 316,392 343,499 Company's Share of EBITDAre (4) 152,478 148,583 150,555 164,126 167,914 301,061 322,633 Company's Share of Adjusted EBITDAre (4) 151,231 147,629 148,350 161,007 167,402 298,860 320,987 Funds From Operations (5) 109,338 108,846 117,158 130,561 135,891 218,184 258,201 Funds Available for Distribution (5) 83,626 91,106 90,534 100,939 103,889 174,732 212,985 PER SHARE INFORMATION (6): Net income (loss) available to common stockholders per share – diluted $ 0.17 $ (0.16) $ 0.10 $ 1.31 $ 0.57 $ 0.01 $ 0.90 Funds From Operations per common share/unit – diluted (5) 0.92 0.91 0.97 1.08 1.13 1.83 2.15 Dividends declared per common share 0.54 0.54 0.54 0.54 0.54 2.16 2.16 RATIOS (7): Net Operating Income Margin 66.2 % 66.1 % 64.8 % 67.5 % 65.8 % 66.1 % 66.2 % Net Debt to Company's Share of EBITDAre Ratio (4) 7.0x 7.0x 7.0x 6.4x 6.6x N/A N/A Net Debt to Company's Share of Adjusted EBITDAre Ratio (4) 7.1x 7.1x 7.1x 6.5x 6.7x N/A N/A Fixed Charge Coverage Ratio - Company’s Share of EBITDAre (4) 3.1x 3.0x 3.0x 3.2x 3.4x 3.0x 3.5x FFO / FAD Payout Ratio (5) 58.0% / 75.8% 58.3% / 69.6% 55.1% / 71.3% 49.4% / 63.9% 47.5% / 62.1% 58.1% / 72.6% 50.0% / 60.6% STABILIZED PORTFOLIO INFORMATION: Period End Occupancy Percentage 77.0 % 77.6 % 81.6 % 81.0 % 80.8 % 77.0 % 80.8 % Period End Leased Percentage 81.5 % 82.3 % 83.8 % 83.3 % 83.5 % 81.5 % 83.5 % Period End Occupancy Percentage excluding KOP 2 80.8 % 81.5 % N/A N/A N/A 80.8 % N/A Period End Leased Percentage excluding KOP 2 83.3 % 84.3 % N/A N/A N/A 83.3 % N/A Average Occupancy 77.6 % 77.4 % 80.9 % 80.7 % 80.8 % 77.5 % 81.1 % Average Occupancy excluding KOP 2 81.4 % 81.4 % N/A N/A N/A 81.4 % N/A Lease Composition (Net / Gross) (8) 53% / 47% 52% / 48% 52% / 48% 50% / 50% 51% / 49% N/A N/A ________________________ Note: Refer to pages 40-43 “Definitions Included in Supplemental” for definitions of commonly used terms included throughout this report. Refer to pages 36-38 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures presented in this report. (1) Primarily represents compensation costs capitalized to construction and development projects. (2) Represents incidental property operating and carry costs capitalized to development projects. (3) Refer to page 44 for a reconciliation of GAAP Net Income Available to Common Stockholders to Net Operating Income. (4) Refer to pages 10 and 45 for reconciliations of GAAP Net Income (Loss) Available to Common Stockholders to EBITDAre, Company’s Share of EBITDAre, and Company’s Share of Adjusted EBITDAre. (5) Refer to page 6 for reconciliations of GAAP Net Income (Loss) Available to Common Stockholders to Funds From Operations and Funds Available for Distribution and page 46 for a reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution. (6) Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders. (7) Ratios are calculated based on current quarter amounts unless otherwise noted. Net Debt to Company’s Share of EBITDAre and Adjusted EBITDAre Ratios are calculated on a trailing-12 month basis. Refer to page 34 for additional information. (8) Based upon Annualized Base Rent, including 100% of consolidated property partnerships, as of the end of the period presented. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 3 Financial Highlights (unaudited, $ in thousands, except per share amounts)
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6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 ASSETS: Land $ 1,730,514 $ 1,730,514 $ 1,641,913 $ 1,661,679 $ 1,627,754 Buildings and improvements 9,051,287 9,011,023 8,505,486 8,658,236 8,427,405 Undeveloped land and construction in progress 1,602,626 1,585,042 2,387,742 2,355,181 2,364,938 Total real estate assets held for investment 12,384,427 12,326,579 12,535,141 12,675,096 12,420,097 Accumulated depreciation and amortization (2,936,240) (2,857,265) (2,843,811) (2,952,576) (2,877,165) Total real estate assets held for investment, net 9,448,187 9,469,314 9,691,330 9,722,520 9,542,932 Real estate and other assets held for sale, net — 188,771 115,155 — 255,795 Cash and cash equivalents 253,805 192,904 179,316 372,416 193,129 Marketable securities 34,990 31,417 30,807 33,569 31,629 Current receivables, net 12,184 15,712 12,765 13,191 11,718 Deferred rent receivables, net 423,968 425,420 424,794 436,886 436,964 Deferred leasing costs and acquisition-related intangible assets, net 264,033 271,213 278,232 229,175 208,266 Right of use ground lease assets, net 127,548 127,834 128,116 128,396 128,674 Prepaid expenses and other assets, net 67,233 52,273 54,561 56,046 58,725 Total Assets $ 10,631,948 $ 10,774,858 $ 10,915,076 $ 10,992,199 $ 10,867,832 LIABILITIES AND EQUITY: Liabilities: Secured debt, net $ 590,095 $ 591,398 $ 592,685 $ 593,956 $ 595,212 Unsecured debt, net 3,947,034 3,997,993 3,996,774 3,995,555 4,002,507 Accounts payable, accrued expenses, and other liabilities 260,644 303,808 288,963 321,188 273,600 Ground lease liabilities 127,198 127,414 127,628 127,830 128,030 Accrued dividends and distributions 63,422 63,421 65,009 64,996 64,985 Deferred revenue and acquisition-related intangible liabilities, net 117,845 122,272 125,628 127,931 131,606 Rents received in advance and tenant security deposits 77,736 79,638 75,701 74,888 73,561 Liabilities related to real estate assets held for sale — — 4,945 — 4,887 Total liabilities 5,183,974 5,285,944 5,277,333 5,306,344 5,274,388 Equity: Stockholders’ Equity Common stock 1,163 1,163 1,184 1,183 1,183 Additional paid-in capital 5,166,167 5,161,140 5,230,747 5,223,369 5,216,320 Retained earnings 58,881 102,859 188,876 240,810 148,952 Total stockholders’ equity 5,226,211 5,265,162 5,420,807 5,465,362 5,366,455 Noncontrolling Interests Common units of the Operating Partnership 50,935 51,328 51,911 53,154 52,192 Consolidated property partnerships 170,828 172,424 165,025 167,339 174,797 Total noncontrolling interests 221,763 223,752 216,936 220,493 226,989 Total equity 5,447,974 5,488,914 5,637,743 5,685,855 5,593,444 Total Liabilities And Equity $ 10,631,948 $ 10,774,858 $ 10,915,076 $ 10,992,199 $ 10,867,832 Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 4 Consolidated Balance Sheets (unaudited, $ in thousands)
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Three Months Ended Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 Revenues Rental income $ 268,321 $ 265,330 $ 267,363 $ 274,909 $ 285,071 $ 533,651 $ 551,315 Other property income 4,050 4,723 4,824 4,835 4,821 8,773 9,421 Total revenues 272,371 270,053 272,187 279,744 289,892 542,424 560,736 Expenses Property expenses 60,134 59,283 64,673 61,764 58,575 119,417 117,289 Real estate taxes 28,302 28,782 26,556 25,878 26,765 57,084 55,130 Ground leases 3,278 3,187 2,991 3,018 3,019 6,465 6,039 General and administrative expenses 18,933 20,699 19,485 18,247 18,475 39,632 35,376 Leasing costs 2,814 3,010 2,592 2,610 2,277 5,824 5,150 Depreciation and amortization 93,560 94,344 92,623 87,487 87,625 187,904 174,744 Total expenses 207,021 209,305 208,920 199,004 196,736 416,326 393,728 Other Income (Expenses) Interest income 1,247 954 2,205 3,119 512 2,201 1,646 Interest expense (41,634) (38,511) (32,148) (32,152) (30,844) (80,145) (61,992) Other (expense) income (248) 389 44 91 190 141 33 Gains on sales of depreciable operating properties — 23,525 — 110,484 16,554 e s 23,525 e s 16,554 Impairment of real estate assets (1) — (61,778) (16,259) — — (61,778) — Total other (expenses) income (40,635) (75,421) (46,158) 81,542 (13,588) (116,056) (43,759) Net Income (Loss) 24,715 (14,673) 17,109 162,282 79,568 10,042 123,249 Net (income) loss attributable to noncontrolling common units of the Operating Partnership (193) 185 (120) (1,524) (663) (8) (1,038) Net income attributable to noncontrolling interests in consolidated property partnerships (4,617) (4,779) (4,545) (4,538) (10,456) (9,396) (14,754) Total net income attributable to noncontrolling interests (4,810) (4,594) (4,665) (6,062) (11,119) (9,404) (15,792) Net Income (Loss) Available To Common Stockholders $ 19,905 $ (19,267) $ 12,444 $ 156,220 $ 68,449 $ 638 $ 107,457 Weighted average common shares outstanding – basic 116,292 117,637 118,338 118,296 118,285 116,961 118,240 Weighted average common shares outstanding – diluted 117,063 117,637 119,153 118,822 118,683 117,699 118,674 Net Income (Loss) Available To Common Stockholders Per Share Net income (loss) available to common stockholders per share – basic $ 0.17 $ (0.16) $ 0.10 $ 1.32 $ 0.58 $ 0.01 $ 0.91 Net income (loss) available to common stockholders per share – diluted $ 0.17 $ (0.16) $ 0.10 $ 1.31 $ 0.57 $ 0.01 $ 0.90 ________________________ (1) During the three months ended March 31, 2026, we recognized an impairment charge of approximately $61.8 million to reduce the carrying amount of the Columbia Square Living and Jardine residential towers to their current fair value less closing costs. The sale of these properties closed in April 2026. During the three months ended December 31, 2025, we recognized an impairment charge of approximately $16.3 million to reduce the carrying amount of Sunset Media Center to its current fair value less closing costs. The sale of this property closed in December 2025. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 5 Consolidated Statements of Operations (unaudited, $ and shares in thousands, except per share amounts)
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Three Months Ended Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 FUNDS FROM OPERATIONS: Net income (loss) available to common stockholders $ 19,905 $ (19,267) $ 12,444 $ 156,220 $ 68,449 $ 638 $ 107,457 Adjustments: Net income (loss) attributable to noncontrolling common units of the Operating Partnership 193 (185) 120 1,524 663 8 1,038 Net income attributable to noncontrolling interests in consolidated property partnerships 4,617 4,779 4,545 4,538 10,456 9,396 14,754 Depreciation and amortization of real estate assets 92,131 92,885 91,213 86,080 86,243 185,016 171,978 Gains on sales of depreciable operating properties — (23,525) — (110,484) (16,554) (23,525) (16,554) Impairment of real estate assets — 61,778 16,259 — — 61,778 — Funds From Operations attributable to noncontrolling interests in consolidated property partnerships (7,508) (7,619) (7,423) (7,317) (13,366) (15,127) (20,472) Funds From Operations $ 109,338 $ 108,846 $ 117,158 $ 130,561 $ 135,891 $ 218,184 $ 258,201 Weighted average common shares/units outstanding – basic (1) 117,956 119,251 119,869 119,870 119,848 118,600 119,799 Weighted average common shares/units outstanding – diluted (1) 118,726 119,957 120,684 120,397 120,246 119,338 120,233 FFO per common share/unit – basic (2) $ 0.93 $ 0.91 $ 0.98 $ 1.09 $ 1.13 $ 1.84 $ 2.16 FFO per common share/unit – diluted (2) $ 0.92 $ 0.91 $ 0.97 $ 1.08 $ 1.13 $ 1.83 $ 2.15 FUNDS AVAILABLE FOR DISTRIBUTION: Funds From Operations $ 109,338 $ 108,846 $ 117,158 $ 130,561 $ 135,891 $ 218,184 $ 258,201 Adjustments: Recurring tenant improvements, leasing commissions, and capital expenditures (28,111) (18,743) (31,724) (36,959) (34,040) (46,854) (51,418) Amortization of deferred revenue related to tenant-funded tenant improvements (3,315) (3,218) (3,547) (3,639) (3,770) (6,533) (7,458) Straight-line rents, net 1,502 (701) 2,358 1,303 3,354 801 7,967 Amortization of net below market rents (651) (641) (624) (764) (845) (1,292) (1,691) Amortization of deferred financing costs and net debt discount/premium 2,637 1,662 1,162 1,218 1,178 4,299 2,397 Non-cash amortization of share-based compensation awards 3,079 4,869 5,145 5,436 4,582 7,948 8,509 Lease related adjustments and other (3) (1,261) (1,380) (640) 1,877 (2,626) (2,641) (4,303) Adjustments attributable to noncontrolling interests in consolidated property partnerships 408 412 1,246 1,906 165 820 781 Funds Available for Distribution $ 83,626 $ 91,106 $ 90,534 $ 100,939 $ 103,889 $ 174,732 $ 212,985 ________________________ (1) Calculated based on weighted average shares outstanding including participating share-based awards and assuming the exchange of all common limited partnership units outstanding. Diluted amounts also include non- participating share-based awards and the dilutive impact of contingently issuable shares. (2) Reported per common share/unit amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders. (3) Includes deferred income and lease incentives, net, deferred settlement and restoration fee income, deferred lease termination fee income. Includes non-cash ground rent expense beginning in Q1 2026. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 6 Funds From Operations & Funds Available for Distribution (unaudited, $ and shares in thousands, except per share amounts)
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Three Months Ended Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 Revenues Income Statement Category * Base rent Rental income $ 195,445 $ 193,622 $ 197,081 $ 201,633 $ 201,955 $ 389,067 $ 404,595 * Tenant reimbursements Rental income 46,994 46,527 47,779 51,867 48,035 93,521 94,348 * Other revenues (1) Rental income 15,951 18,417 18,442 16,656 19,967 34,368 35,597 Deferred income and lease incentives, net (2) Rental income 965 1,060 257 707 771 2,025 1,605 Amortization of deferred revenue related to tenant-funded tenant improvements Rental income 3,315 3,218 3,547 3,639 3,770 6,533 7,458 Straight-line rents, net Rental income (1,502) 701 (2,358) (1,303) (3,354) (801) (7,967) Amortization of net below market rents Rental income 651 641 624 764 845 1,292 1,691 * Settlement and restoration fee income Rental income 6,138 746 450 2,663 639 6,884 702 Deferred settlement and restoration fee income Rental income — — — (2,026) 1,689 — 2,026 Cash lease termination fee income Rental income — 9 1,158 867 10,588 9 10,588 Deferred lease termination fee income Rental income 364 389 383 (558) 166 753 672 * Other property income (3) Other property income 4,050 4,723 4,824 4,835 4,821 8,773 9,421 Total Revenues $ 272,371 $ 270,053 $ 272,187 $ 279,744 $ 289,892 $ 542,424 $ 560,736 ________________________ • Represents a component of Cash Net Operating Income. (1) Primarily comprised of residential income, contractual parking income, and net of revenues deemed uncollectible. (2) Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. (3) Primarily comprised of transient parking income. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 7 Supplemental Income Statement Detail (unaudited, $ in thousands)
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Three Months Ended Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 Cash Operating Revenues: Base rent $ 195,445 $ 193,622 $ 197,081 $ 201,633 $ 201,955 $ 389,067 $ 404,595 Tenant reimbursements 46,994 46,527 47,779 51,867 48,035 93,521 94,348 Other revenues (1) 15,951 18,417 18,442 16,656 19,967 34,368 35,597 Settlement and restoration fee income 6,138 746 450 2,663 639 6,884 702 Other property income (2) 4,050 4,723 4,824 4,835 4,821 8,773 9,421 Total cash operating revenues 268,578 264,035 268,576 277,654 275,417 532,613 544,663 Cash Operating Expenses: Property expenses 60,134 59,283 64,673 61,764 58,575 119,417 117,289 Real estate taxes 28,302 28,782 26,556 25,878 26,765 57,084 55,130 Ground leases 3,210 3,118 2,913 2,940 2,941 6,328 5,883 Total cash operating expenses 91,646 91,183 94,142 90,582 88,281 182,829 178,302 Cash Net Operating Income (3) 176,932 172,852 174,434 187,072 187,136 349,784 366,361 Deferred income and lease incentives, net (4) 965 1,060 257 707 771 2,025 1,605 Amortization of deferred revenue related to tenant-funded tenant improvements 3,315 3,218 3,547 3,639 3,770 6,533 7,458 Straight-line rents, net (1,502) 701 (2,358) (1,303) (3,354) (801) (7,967) Amortization of net below market rents 651 641 624 764 845 1,292 1,691 Deferred settlement and restoration fee income — — — (2,026) 1,689 — 2,026 Other (5) (68) (69) (78) (78) (78) (137) (156) Net Operating Income (3) 180,293 178,403 176,426 188,775 190,779 358,696 371,018 Lease termination fees 364 398 1,541 309 10,754 762 11,260 General and administrative expenses (18,933) (20,699) (19,485) (18,247) (18,475) (39,632) (35,376) Leasing costs (2,814) (3,010) (2,592) (2,610) (2,277) (5,824) (5,150) Other (expense) income (248) 389 44 91 190 141 33 Interest income 1,247 954 2,205 3,119 512 2,201 1,646 Interest expense (41,634) (38,511) (32,148) (32,152) (30,844) (80,145) (61,992) Depreciation and amortization (93,560) (94,344) (92,623) (87,487) (87,625) (187,904) (174,744) Gains on sales of depreciable operating properties — 23,525 — 110,484 16,554 23,525 16,554 Impairment of real estate assets — (61,778) (16,259) — — (61,778) — Net Income (Loss) $ 24,715 $ (14,673) $ 17,109 $ 162,282 $ 79,568 $ 10,042 $ 123,249 ________________________ (1) Primarily comprised of residential income, contractual parking income, and net of revenues deemed uncollectible. (2) Primarily comprised of transient parking income. (3) Refer to page 44 for a reconciliation of GAAP Net Income Available to Common Stockholders to Cash Net Operating Income and Net Operating Income. (4) Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. (5) Includes other non-cash amounts primarily related to ground rent expense. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 8 Net Operating Income (unaudited, $ in thousands)
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Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % Contribution 2026 2025 % Contribution Total Same Property Portfolio Number of properties 113 113 Square Feet 15,617,298 15,617,298 Average Occupancy (1) 82.0 % 81.0 % 82.0 % 81.4 % Percent of Stabilized Portfolio 91.2 % 91.2 % Cash Operating Revenues: Base rent $ 187,649 $ 185,959 1.0 % $ 372,421 $ 372,717 (0.1) % Tenant reimbursements 44,570 44,973 (0.2) % 88,947 88,552 0.2 % Other revenues (2) 14,370 15,224 (0.5) % 27,943 26,201 0.5 % Settlement and restoration fee income 6,117 639 3.2 % 6,863 702 1.8 % Other property income (3) 3,625 4,160 (0.3) % 7,599 7,934 (0.1) % Total cash operating revenues 256,331 250,955 3.2 % 503,773 496,106 2.3 % Cash Operating Expenses: Property expenses 53,854 51,654 (1.3) % 106,111 103,805 (0.7) % Real estate taxes 23,053 22,792 (0.2) % 46,478 47,188 0.2 % Ground leases 3,210 2,941 (0.2) % 6,328 5,883 (0.1) % Total cash operating expenses 80,117 77,387 (1.7) % 158,917 156,876 (0.6) % Cash Net Operating Income (4) (5) (6) $ 176,214 $ 173,568 1.5 % $ 344,856 $ 339,230 1.7 % ________________________ (1) Calculated as the average of the daily ending occupancy percentages. (2) Primarily comprised of residential income, contractual parking income, and net of revenues deemed uncollectible. (3) Primarily comprised of transient parking income. (4) For Same Property Cash Net Operating Income, restoration and settlement fee income is recognized in the period in which it is received, which may not correspond with the timing of GAAP revenue recognition. Tenant prepayments are recognized in the applicable lease billing period. (5) Refer to page 44 for a reconciliation of GAAP Net Income Available to Common Stockholders to Same Property Cash Net Operating Income. (6) For the three months ended June 30, 2026 and 2025, Same Property Cash Net Operating Income from our One Paseo Living residential property represented 2.9% and 2.8% of total Same Property Cash Net Operating Income, respectively. For the six months ended June 30, 2026 and 2025, Same Property Cash Net Operating Income from our One Paseo Living residential property represented 2.9% and 2.7% of total Same Property Cash Net Operating Income, respectively. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 9 Same Property Net Operating Income Analysis (Cash Basis) (unaudited, $ in thousands)
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Three Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Net Income (Loss) Available to Common Stockholders $ 19,905 $ (19,267) $ 12,444 $ 156,220 $ 68,449 Interest expense 41,634 38,511 32,148 32,152 30,844 Depreciation and amortization 93,560 94,344 92,623 87,487 87,625 Taxes 77 (29) — 124 17 EBITDA 155,176 113,559 137,215 275,983 186,935 Net income (loss) available to noncontrolling common units of the Operating Partnership 193 (185) 120 1,524 663 Net income attributable to noncontrolling interests in consolidated property partnerships 4,617 4,779 4,545 4,538 10,456 Gains on sales of depreciable operating properties — (23,525) — (110,484) (16,554) Impairment of real estate assets — 61,778 16,259 — — EBITDAre 159,986 156,406 158,139 171,561 181,500 EBITDAre attributable to noncontrolling interests in consolidated property partnerships (7,508) (7,823) (7,584) (7,435) (13,586) Company's Share of EBITDAre 152,478 148,583 150,555 164,126 167,914 Interest income (1,247) (954) (2,205) (3,119) (512) Company's Share of Adjusted EBITDAre $ 151,231 $ 147,629 $ 148,350 $ 161,007 $ 167,402 Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 10 EBITDA, EBITDAre, and Adjusted EBITDAre (unaudited, $ in thousands)
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02 Portfolio Data – Stabilized Portfolio Occupancy Overview by Region – Leases Executed – Stabilized Portfolio Capital Expenditures – Stabilized Portfolio Lease Expirations – Top 20 Tenants – Tenant Industry Diversification – 2026 Acquisitions – 2026 Dispositions and Assets Under Contract – Consolidated Ventures (Noncontrolling Property Partnerships) Maple Plaza, Beverly Hills, CA
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Total Rentable Square Feet Occupied at Leased at YTD NOI % Rentable Square Feet % 6/30/2026 3/31/2026 6/30/2026 3/31/2026 SAN FRANCISCO BAY AREA San Francisco CBD 25.9 % 19.9 % 3,410,022 81.3 % 82.4 % 82.0 % 84.3 % South San Francisco (3) 8.5 % 9.8 % 1,677,847 47.9 % 46.9 % 69.5 % 67.2 % Other Peninsula 5.5 % 4.2 % 726,200 89.4 % 85.3 % 89.4 % 89.4 % Silicon Valley 4.9 % 3.6 % 622,640 100.0 % 100.0 % 100.0 % 100.0 % Total San Francisco Bay Area 44.8 % 37.5 % 6,436,709 75.3 % 75.2 % 81.3 % 81.9 % LOS ANGELES El Segundo 2.9 % 6.4 % 1,103,595 65.4 % 65.1 % 65.8 % 66.0 % Hollywood / West Hollywood 7.2 % 6.2 % 1,057,790 86.1 % 85.3 % 95.6 % 95.2 % Long Beach 2.7 % 5.6 % 956,996 78.5 % 88.1 % 81.6 % 92.9 % West Los Angeles 1.3 % 3.8 % 655,094 55.2 % 57.8 % 63.0 % 58.0 % Beverly Hills 1.9 % 1.8 % 306,366 80.4 % 81.6 % 84.1 % 81.6 % Culver City 0.2 % 1.0 % 166,207 52.2 % 50.8 % 52.2 % 52.2 % Total Los Angeles 16.2 % 24.8 % 4,246,048 72.5 % 74.8 % 77.2 % 78.7 % SEATTLE Lake Union / Denny Regrade 11.2 % 12.1 % 2,078,012 80.7 % 78.5 % 85.9 % 83.3 % Bellevue 5.7 % 5.4 % 919,295 74.9 % 81.0 % 75.6 % 81.5 % Total Seattle 16.9 % 17.5 % 2,997,307 78.9 % 79.3 % 82.7 % 82.7 % SAN DIEGO Del Mar 12.9 % 10.8 % 1,853,346 89.2 % 90.2 % 89.4 % 90.4 % Little Italy / Point Loma 0.8 % 1.9 % 320,371 62.9 % 61.9 % 67.3 % 67.4 % University Towne Center 1.8 % 1.7 % 283,134 81.6 % 81.6 % 90.3 % 90.3 % Torrey Pines 1.6 % 1.4 % 232,166 75.1 % 75.1 % 75.1 % 75.1 % Total San Diego 17.1 % 15.8 % 2,689,017 84.1 % 84.6 % 85.6 % 86.3 % AUSTIN Austin CBD 5.0 % 4.4 % 758,975 84.0 % 83.2 % 88.8 % 88.8 % Total Austin 5.0 % 4.4 % 758,975 84.0 % 83.2 % 88.8 % 88.8 % Total Stabilized Portfolio 100.0 % 100.0 % 17,128,056 77.0 % 77.6 % 81.5 % 82.3 % Total Stabilized Portfolio Excluding KOP 2 80.8 % 81.5 % 83.3 % 84.3 % Average Occupancy (4) Quarter to Date Quarter to Date (Excluding KOP 2) Year to Date Year to Date (Excluding KOP 2) 77.6% 81.4% 77.5% 81.4% ________________________ (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. Excludes our residential property. (2) Occupied and leased percentage calculations presented throughout this report are based on rentable square footage at the end of the period, inclusive of all remeasurements that occurred during the period. (3) KOP 2 stabilized during the three months ended March 31, 2026. (4) Calculated as the average of the daily ending occupancy percentages. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 12 Stabilized Portfolio Occupancy Overview by Region (1) (2) (unaudited)
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Rentable Square Feet Occupied at Leased at Campus Submarket 6/30/2026 3/31/2026 6/30/2026 3/31/2026 SAN FRANCISCO BAY AREA, CALIFORNIA 100 Hooper Street 100 Hooper San Francisco CBD 417,914 94.4 % 94.4 % 94.4 % 94.4 % 100 First Street 100 First Street San Francisco CBD 480,457 92.2 % 95.2 % 92.2 % 95.2 % 201 Third Street 201 Third Street San Francisco CBD 355,960 86.4 % 62.1 % 90.7 % 80.2 % 303 Second Street 303 Second Street San Francisco CBD 784,658 63.1 % 62.7 % 64.0 % 62.7 % 350 Mission Street 350 Mission Street San Francisco CBD 455,340 99.7 % 99.7 % 99.7 % 99.7 % 360 Third Street 360 Third Street San Francisco CBD 436,357 45.7 % 71.3 % 45.7 % 71.3 % 250 Brannan Street The Brannans San Francisco CBD 100,850 100.0 % 100.0 % 100.0 % 100.0 % 301 Brannan Street The Brannans San Francisco CBD 82,834 100.0 % 100.0 % 100.0 % 100.0 % 333 Brannan Street The Brannans San Francisco CBD 185,602 100.0 % 100.0 % 100.0 % 100.0 % 345 Brannan Street The Brannans San Francisco CBD 110,050 99.7 % 99.7 % 99.7 % 99.7 % 350 Oyster Point Boulevard Kilroy Oyster Point - Phase 1 South San Francisco 234,892 100.0 % 100.0 % 100.0 % 100.0 % 352 Oyster Point Boulevard Kilroy Oyster Point - Phase 1 South San Francisco 232,215 100.0 % 100.0 % 100.0 % 100.0 % 354 Oyster Point Boulevard Kilroy Oyster Point - Phase 1 South San Francisco 193,472 100.0 % 100.0 % 100.0 % 100.0 % 363 Oyster Point Boulevard * Kilroy Oyster Point - Phase 2 South San Francisco 318,935 0.0 % 0.0 % 0.0 % 0.0 % 365 Oyster Point Boulevard * Kilroy Oyster Point - Phase 2 South San Francisco 272,333 22.9 % 17.1 % 53.0 % 39.2 % 369 Oyster Point Boulevard * Kilroy Oyster Point - Phase 2 South San Francisco 280,470 0.0 % 0.0 % 100.0 % 100.0 % 345 Oyster Point Boulevard Oyster Point Tech Center South San Francisco 40,410 100.0 % 100.0 % 100.0 % 100.0 % 347 Oyster Point Boulevard Oyster Point Tech Center South San Francisco 39,780 100.0 % 100.0 % 100.0 % 100.0 % 349 Oyster Point Boulevard Oyster Point Tech Center South San Francisco 65,340 0.0 % 0.0 % 0.0 % 0.0 % 900 Jefferson Avenue Crossing 900 Other Peninsula 228,226 100.0 % 100.0 % 100.0 % 100.0 % 900 Middlefield Road Crossing 900 Other Peninsula 119,616 100.0 % 100.0 % 100.0 % 100.0 % 4100 Bohannon Drive Menlo Corporate Center Other Peninsula 47,643 100.0 % 100.0 % 100.0 % 100.0 % 4200 Bohannon Drive Menlo Corporate Center Other Peninsula 43,600 48.9 % 48.9 % 48.9 % 48.9 % 4300 Bohannon Drive Menlo Corporate Center Other Peninsula 63,430 85.3 % 38.8 % 85.3 % 85.3 % 4400 Bohannon Drive * Menlo Corporate Center Other Peninsula 48,414 6.3 % 6.3 % 6.3 % 6.3 % 4500 Bohannon Drive Menlo Corporate Center Other Peninsula 63,429 100.0 % 100.0 % 100.0 % 100.0 % 4600 Bohannon Drive Menlo Corporate Center Other Peninsula 48,413 100.0 % 100.0 % 100.0 % 100.0 % 4700 Bohannon Drive Menlo Corporate Center Other Peninsula 63,429 100.0 % 100.0 % 100.0 % 100.0 % 680 E. Middlefield Road 680 & 690 Middlefield Silicon Valley 171,676 100.0 % 100.0 % 100.0 % 100.0 % 690 E. Middlefield Road 680 & 690 Middlefield Silicon Valley 171,215 100.0 % 100.0 % 100.0 % 100.0 % 1701 Page Mill Road Page Mill / Porter Silicon Valley 128,688 100.0 % 100.0 % 100.0 % 100.0 % 3150 Porter Drive Page Mill / Porter Silicon Valley 36,886 100.0 % 100.0 % 100.0 % 100.0 % 1290-1300 Terra Bella Avenue Terra Bella Silicon Valley 114,175 100.0 % 100.0 % 100.0 % 100.0 % Total San Francisco Bay Area 6,436,709 75.3 % 75.2 % 81.3 % 81.9 % ________________________ * Excluded from the Same Property portfolio. (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 13 Stabilized Portfolio Occupancy Overview by Region, continued (1) (unaudited)
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Rentable Square Feet Occupied at Leased at Campus Submarket 6/30/2026 3/31/2026 6/30/2026 3/31/2026 LOS ANGELES, CALIFORNIA 2240 E. Imperial Highway Kilroy Airport Center El Segundo 122,870 100.0 % 100.0 % 100.0 % 100.0 % 2250 E. Imperial Highway Kilroy Airport Center El Segundo 298,728 37.7 % 37.7 % 37.7 % 37.7 % 2260 E. Imperial Highway Kilroy Airport Center El Segundo 298,728 100.0 % 100.0 % 100.0 % 100.0 % 909 N. Pacific Coast Highway The Nines El Segundo 244,880 66.4 % 65.5 % 68.3 % 69.7 % 999 N. Pacific Coast Highway The Nines El Segundo 138,389 18.3 % 16.9 % 18.3 % 16.9 % 1500 N. El Centro Avenue Columbia Square Hollywood / West Hollywood 113,447 63.6 % 63.6 % 63.6 % 63.6 % 1525 N. Gower Street Columbia Square Hollywood / West Hollywood 9,610 100.0 % 0.0 % 100.0 % 100.0 % 1575 N. Gower Street Columbia Square Hollywood / West Hollywood 264,430 100.0 % 98.3 % 100.0 % 98.3 % 6115 W. Sunset Boulevard Columbia Square Hollywood / West Hollywood 26,237 73.4 % 93.4 % 98.2 % 98.2 % 6121 W. Sunset Boulevard Columbia Square Hollywood / West Hollywood 93,418 0.0 % 0.0 % 100.0 % 100.0 % 1350 Ivar Avenue On Vine Hollywood / West Hollywood 16,448 100.0 % 100.0 % 100.0 % 100.0 % 1355 Vine Street On Vine Hollywood / West Hollywood 183,129 100.0 % 100.0 % 100.0 % 100.0 % 1375 Vine Street On Vine Hollywood / West Hollywood 159,236 100.0 % 100.0 % 100.0 % 100.0 % 1395 Vine Street On Vine Hollywood / West Hollywood 2,575 100.0 % 100.0 % 100.0 % 100.0 % 8560 W. Sunset Boulevard The Sunset Hollywood / West Hollywood 76,359 98.9 % 100.0 % 100.0 % 100.0 % 8570 W. Sunset Boulevard The Sunset Hollywood / West Hollywood 49,276 99.0 % 99.0 % 99.0 % 99.0 % 8580 W. Sunset Boulevard The Sunset Hollywood / West Hollywood 6,875 41.0 % 41.0 % 41.0 % 41.0 % 8590 W. Sunset Boulevard The Sunset Hollywood / West Hollywood 56,750 99.7 % 99.7 % 99.7 % 99.7 % 3750 Kilroy Airport Way Aero Long Beach 7,491 100.0 % 100.0 % 100.0 % 100.0 % 3760 Kilroy Airport Way Aero Long Beach 167,317 83.1 % 77.5 % 84.8 % 87.0 % 3780 Kilroy Airport Way Aero Long Beach 222,191 98.1 % 98.1 % 98.1 % 98.1 % 3800 Kilroy Airport Way Aero Long Beach 192,476 52.0 % 93.4 % 55.0 % 93.4 % 3840 Kilroy Airport Way Aero Long Beach 138,903 100.0 % 100.0 % 100.0 % 100.0 % 3880 Kilroy Airport Way Aero Long Beach 97,246 39.0 % 91.3 % 47.7 % 91.3 % 3900 Kilroy Airport Way Aero Long Beach 131,372 83.8 % 61.1 % 93.4 % 83.8 % 2100/2110 Colorado Avenue Santa Monica Media Center West Los Angeles 109,225 53.2 % 55.4 % 100.0 % 55.4 % 12233 W. Olympic Boulevard Tribeca West West Los Angeles 156,746 38.0 % 47.0 % 38.0 % 47.8 % 12100 W. Olympic Boulevard Westside Media Center West Los Angeles 155,679 68.7 % 68.7 % 68.7 % 68.7 % 12200 W. Olympic Boulevard Westside Media Center West Los Angeles 154,544 37.7 % 37.7 % 37.7 % 37.7 % 12312 W. Olympic Boulevard Westside Media Center West Los Angeles 78,900 100.0 % 100.0 % 100.0 % 100.0 % 335-345 N. Maple Drive * Maple Plaza Beverly Hills 306,366 80.4 % 81.6 % 84.1 % 81.6 % 3101-3243 S. La Cienega Boulevard Blackwelder Culver City 166,207 52.2 % 50.8 % 52.2 % 52.2 % Total Los Angeles 4,246,048 72.5 % 74.8 % 77.2 % 78.7 % ________________________ * Excluded from the Same Property portfolio. (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 14 Stabilized Portfolio Occupancy Overview by Region, continued (1) (unaudited)
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Rentable Square Feet Occupied at Leased at Campus Submarket 6/30/2026 3/31/2026 6/30/2026 3/31/2026 SEATTLE, WASHINGTON 333 Dexter Avenue North 333 Dexter Lake Union / Denny Regrade 618,766 100.0 % 100.0 % 100.0 % 100.0 % 401 Terry Avenue North 401 Terry Lake Union / Denny Regrade 174,530 100.0 % 100.0 % 100.0 % 100.0 % 701 N. 34th Street Fremont Lake Union Center Lake Union / Denny Regrade 142,820 64.0 % 64.0 % 64.0 % 64.0 % 801 N. 34th Street Fremont Lake Union Center Lake Union / Denny Regrade 173,615 100.0 % 100.0 % 100.0 % 100.0 % 837 N. 34th Street Fremont Lake Union Center Lake Union / Denny Regrade 112,487 71.3 % 71.3 % 100.0 % 100.0 % 2001 8th Avenue West8 Lake Union / Denny Regrade 535,395 40.6 % 32.3 % 54.7 % 44.6 % 320 Westlake Avenue North Westlake Terry Lake Union / Denny Regrade 184,644 100.0 % 100.0 % 100.0 % 100.0 % 321 Terry Avenue North Westlake Terry Lake Union / Denny Regrade 135,755 100.0 % 100.0 % 100.0 % 100.0 % 601 108th Avenue NE Key Center Bellevue 490,738 63.3 % 74.4 % 64.1 % 75.2 % 10900 NE 4th Street Skyline Tower Bellevue 428,557 88.2 % 88.5 % 88.7 % 88.7 % Total Seattle 2,997,307 78.9 % 79.3 % 82.7 % 82.7 % ________________________ (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 15 Stabilized Portfolio Occupancy Overview by Region, continued (1) (unaudited)
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Rentable Square Feet Occupied at Leased at Campus Submarket (2) 6/30/2026 3/31/2026 6/30/2026 3/31/2026 SAN DIEGO, CALIFORNIA 12225 El Camino Real Carmel Valley Corporate Center Del Mar 58,401 100.0 % 100.0 % 100.0 % 100.0 % 12235 El Camino Real Carmel Valley Corporate Center Del Mar 53,751 100.0 % 100.0 % 100.0 % 100.0 % 12400 High Bluff Drive 12400 High Bluff Drive Del Mar 216,518 91.5 % 100.0 % 91.5 % 100.0 % 3579 Valley Centre Drive Kilroy Centre Del Mar Del Mar 54,960 100.0 % 100.0 % 100.0 % 100.0 % 3611 Valley Centre Drive Kilroy Centre Del Mar Del Mar 132,425 100.0 % 100.0 % 100.0 % 100.0 % 3661 Valley Centre Drive Kilroy Centre Del Mar Del Mar 124,756 34.2 % 34.2 % 34.2 % 34.2 % 3721 Valley Centre Drive Kilroy Centre Del Mar Del Mar 117,777 94.8 % 94.8 % 94.8 % 94.8 % 3811 Valley Centre Drive Kilroy Centre Del Mar Del Mar 118,912 100.0 % 100.0 % 100.0 % 100.0 % 12770 El Camino Real One Paseo Del Mar 75,035 100.0 % 100.0 % 100.0 % 100.0 % 12780 El Camino Real One Paseo Del Mar 140,591 100.0 % 100.0 % 100.0 % 100.0 % 12790 El Camino Real One Paseo Del Mar 87,944 100.0 % 100.0 % 100.0 % 100.0 % 12830 El Camino Real One Paseo Del Mar 196,444 100.0 % 100.0 % 100.0 % 100.0 % 12860 El Camino Real One Paseo Del Mar 92,042 100.0 % 100.0 % 100.0 % 100.0 % 3745 Paseo Place One Paseo Del Mar 95,871 94.1 % 92.8 % 96.8 % 96.8 % 12707 High Bluff Drive One Paseo Junction Del Mar 59,245 91.2 % 91.2 % 91.2 % 91.2 % 12777 High Bluff Drive One Paseo Junction Del Mar 44,486 100.0 % 100.0 % 100.0 % 100.0 % 12340 El Camino Real The Caminos Del Mar 110,950 25.9 % 25.9 % 25.9 % 25.9 % 12390 El Camino Real The Caminos Del Mar 73,238 100.0 % 100.0 % 100.0 % 100.0 % 2100 Kettner Boulevard 2100 Kettner Little Italy / Point Loma 212,915 50.1 % 48.5 % 56.8 % 56.9 % 2305 Historic Decatur Road Kilroy Liberty Station Little Italy / Point Loma 107,456 88.3 % 88.3 % 88.3 % 88.3 % 4690 Executive Drive * 4690 Executive University Towne Center 52,074 0.0 % 0.0 % 47.3 % 47.3 % 9455 Towne Centre Drive 9455 Towne Centre Drive University Towne Center 160,444 100.0 % 100.0 % 100.0 % 100.0 % 9514 Towne Centre Drive 9514 Towne Centre Drive University Towne Center 70,616 100.0 % 100.0 % 100.0 % 100.0 % 3530 John Hopkins Court * Nautilus Torrey Pines 45,589 100.0 % 100.0 % 100.0 % 100.0 % 3535 General Atomics Court * Nautilus Torrey Pines 80,543 28.1 % 28.1 % 28.1 % 28.1 % 3550 John Hopkins Court * Nautilus Torrey Pines 62,739 100.0 % 100.0 % 100.0 % 100.0 % 3565 General Atomics Court * Nautilus Torrey Pines 43,295 100.0 % 100.0 % 100.0 % 100.0 % Total San Diego 2,689,017 84.1 % 84.6 % 85.6 % 86.3 % ________________________ * Excluded from the Same Property portfolio. (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. (2) The Company defines the Del Mar submarket as Del Mar, Del Mar Heights, and Carmel Valley. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 16 Stabilized Portfolio Occupancy Overview by Region, continued (1) (unaudited)
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Rentable Square Feet Occupied at Leased at Campus Submarket 6/30/2026 3/31/2026 6/30/2026 3/31/2026 AUSTIN, TEXAS 200 W. 6th Street Indeed Tower Austin CBD 758,975 84.0 % 83.2 % 88.8 % 88.8 % Total Austin 758,975 84.0 % 83.2 % 88.8 % 88.8 % Total Stabilized Portfolio 17,128,056 77.0 % 77.6 % 81.5 % 82.3 % Total Stabilized Portfolio Excluding KOP 2 80.8 % 81.5 % 83.3 % 84.3 % Average Residential Occupancy Quarter to Date Year to Date RESIDENTIAL PROPERTY Campus Submarket (2) Total No. of Units 6/30/2026 3/31/2026 6/30/2026 SAN DIEGO, CALIFORNIA 3200 Paseo Village Way One Paseo Living Del Mar 608 95.6 % 95.0 % 95.3% ________________________ (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. (2) The Company defines the Del Mar submarket as Del Mar, Del Mar Heights, and Carmel Valley. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 17 Stabilized Portfolio Occupancy Overview by Region, continued (1) (unaudited)
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# of Leases Square Feet Weighted Average Lease Term (Mo.) TI/LC Per Sq.Ft. (2) TI/LC Per Sq.Ft. / Year (2)Quarter to Date New Renewal New Renewal Total 2nd Gen Leasing 15 13 119,082 134,530 253,612 66 $ 67.00 $ 10.14 1st Gen / Major Repositioning / In-Process Development & Redevelopment Leasing 4 — 81,896 — 81,896 79 $ 272.73 $ 39.69 Total 19 13 200,978 134,530 335,508 # of Leases Square Feet Weighted Average Lease Term (Mo.) TI/LC Per Sq.Ft. (2) TI/LC Per Sq.Ft. / Year (2)Year to Date New Renewal New Renewal Total 2nd Gen Leasing 38 24 364,444 179,006 543,450 59 $ 58.50 $ 10.70 1st Gen / Major Repositioning / In-Process Development & Redevelopment Leasing 8 — 289,977 — 289,977 168 $ 307.74 $ 25.46 Total 46 24 654,421 179,006 833,427 Quarter to Date Year to Date 2nd Gen Leasing Change in Rents Changes in GAAP Rents (3) Changes in Cash Rents (4) Changes in GAAP Rents (3) Changes in Cash Rents (4) Leases Signed On Space Vacant Less Than or Equal to 12 Months 27.3 % 15.6 % 22.9 % 10.0 % All Leases Signed 21.0 % 6.1 % 1.7 % (7.6) % Retention Rate Calculations Quarter to Date Year to Date Retention Rate 27.9 % 24.8 % Retention Rate, including subtenants 27.9 % 30.0 % Leases Signed But Not Yet Commenced (5) Period of Estimated Lease Commencement (6) H2 2026 H1 2027 H2 2027 2028 and Beyond Total Square Feet 322,692 129,094 384,494 207,572 1,043,852 Annualized Base Rent (“ABR”) $ 16,877 $ 7,039 $ 28,021 $ 26,420 $ 78,357 ABR per Sq. Ft. $ 52.30 $ 54.52 $ 72.88 $ 127.28 $ 75.07 Net Leases 86 % Gross Leases 14 % Total ABR 100 % ________________________ (1) Includes 100% of consolidated property partnerships. Excludes leases with a lease term of less than one year (i.e. short-term leases). During the three months ended June 30, 2026, the Company signed 40,147 square feet of short-term leases, comprised of 32,128 square feet of new leasing on vacant space and 8,019 square feet of renewal leasing. During the six months ended June 30, 2026, the Company signed 110,289 square feet of short-term leases, comprised of 64,557 square feet of new leasing on vacant space and 45,732 square feet of renewal leasing. (2) Includes tenant improvements and third-party leasing commissions, and excludes tenant-funded tenant improvements and indirect leasing costs. (3) Calculated as the change between the expiring GAAP rent and the new GAAP rent for the same space. When necessary, lease structures are modified (adjusted for net leases) for comparability. Space that was vacant when the property was acquired is excluded from these calculations. (4) Calculated as the change between the expiring cash rent and the new cash rent for the same space. When necessary, lease structures are modified (adjusted for net leases) for comparability. Space that was vacant when the property was acquired is excluded from these calculations. (5) Includes 773,464 square feet of new leasing on previously vacant space, 144,798 square feet of non-stabilized development leasing, and 125,590 square feet that has been backfilled or re-leased to a subtenant as of June 30, 2026, but had not yet commenced. (6) Represents achievement of revenue recognition for the associated lease agreements. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 18 Leases Executed (1)
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Quarter to Date Year to Date Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 2026 2025 Second Generation Capital Expenditures: (1) Capital Improvements $ 6,576 $ 2,974 $ 10,068 $ 9,529 $ 13,548 $ 9,550 $ 20,183 Tenant Improvements & Leasing Commissions 21,535 15,769 21,656 27,430 20,492 37,304 31,235 Total $ 28,111 $ 18,743 $ 31,724 $ 36,959 $ 34,040 $ 46,854 $ 51,418 Average Capital Expenditures to Average NOI Ratio - Trailing Five Quarters 16.4 % Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 2026 2025 Major Repositioning Capital Expenditures: (2) Capital Improvements $ — $ — $ 60 $ 39 $ 702 $ — $ 795 Total $ — $ — $ 60 $ 39 $ 702 $ — $ 795 Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 2026 2025 First Generation Capital Expenditures: Tenant Improvements & Leasing Commissions $ 14,738 $ 8,980 $ 5,098 $ 4,268 $ 5,834 $ 23,718 $ 9,748 Total $ 14,738 $ 8,980 $ 5,098 $ 4,268 $ 5,834 $ 23,718 $ 9,748 ________________________ (1) Includes 100% of consolidated property partnerships. (2) Represents significant non-recurring capital expenditures for repositioning space that is expected to result in additional revenue generated when the space is re-leased. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 19 Stabilized Portfolio Capital Expenditures ($ in thousands)
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Square Feet 30,009 337,878 1,024,406 1,324,618 1,515,606 1,738,849 2,637,863 1,322,063 1,199,632 721,346 637,974 578,105 355,175 78,678 137,682 84,856 200,196 505,697 Q4 Q3 Q2 Q1 MTM 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 and beyond — 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 # of Expiring Leases 32 66 78 70 70 74 26 24 21 17 28 % of Total Leased Sq. Ft. 2.6 % 7.9 % 10.2 % 11.6 % 13.3 % 20.3 % 10.1 % 9.2 % 5.5 % 4.9 % 4.4 % ABR (3) $15,722 $38,087 $80,878 $79,803 $104,902 $162,034 $86,450 $70,986 $47,294 $36,991 $36,731 % of Total ABR 2.1 % 5.0 % 10.6 % 10.5 % 13.8 % 21.4 % 11.4 % 9.3 % 6.2 % 4.9 % 4.8 % ABR per Sq. Ft. $46.53 $37.18 $61.06 $52.65 $60.33 $61.43 $65.39 $59.17 $65.56 $57.98 $63.54 ________________________ (1) Represents all in-place leases as of June 30, 2026, excluding intercompany leases. (2) Adjusting for leases that have been backfilled or released to a subtenant as of June 30, 2026 but not yet commenced, the 2026, 2027, and 2028 expirations would be reduced by 89,457, 9,283, and 26,850 square feet, respectively. (3) Includes 100% of consolidated property partnerships. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 20 Stabilized Portfolio Lease Expirations (1) (2) ($ in thousands, except for Annualized Base Rent per sq. ft.)
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Year Region # of Expiring Leases Total Square Feet % of Total Leased Sq. Ft. Annualized Base Rent (1) % of Total Annualized Base Rent Annualized Base Rent per Sq. Ft. 2026 San Francisco Bay Area 5 38,806 0.3 % $ 2,647 0.3 % $ 68.21 Los Angeles 17 160,650 1.2 % 7,478 1.1 % 46.55 Seattle 7 129,299 1.0 % 5,232 0.7 % 40.46 San Diego 3 9,123 0.1 % 365 — % 40.01 Austin — — — % — — % — Total 32 337,878 2.6 % $ 15,722 2.1 % $ 46.53 2027 San Francisco Bay Area 6 43,676 0.4 % $ 1,668 0.2 % $ 38.19 Los Angeles 46 795,442 6.1 % 27,792 3.7 % 34.94 Seattle 10 126,942 1.0 % 5,684 0.7 % 44.78 San Diego 4 58,346 0.4 % 2,943 0.4 % 50.44 Austin — — — % — — % — Total 66 1,024,406 7.9 % $ 38,087 5.0 % $ 37.18 2028 San Francisco Bay Area 16 858,595 6.7 % $ 54,149 7.1 % $ 63.07 Los Angeles 42 211,504 1.6 % 12,616 1.7 % 59.65 Seattle 7 44,923 0.3 % 1,650 0.2 % 36.73 San Diego 13 209,596 1.6 % 12,463 1.6 % 59.46 Austin — — — % — — % — Total 78 1,324,618 10.2 % $ 80,878 10.6 % $ 61.06 2029 San Francisco Bay Area 17 586,832 4.5 % $ 32,173 4.2 % $ 54.82 Los Angeles 23 438,779 3.4 % 22,776 3.0 % 51.91 Seattle 11 232,111 1.8 % 10,302 1.4 % 44.38 San Diego 18 253,673 1.9 % 14,317 1.9 % 56.44 Austin 1 4,211 — % 235 — % 55.81 Total 70 1,515,606 11.6 % $ 79,803 10.5 % $ 52.65 2030 San Francisco Bay Area 15 842,110 6.5 % $ 54,815 7.2 % $ 65.09 Los Angeles 19 220,852 1.7 % 13,064 1.7 % 59.15 Seattle 9 459,089 3.5 % 21,656 2.8 % 47.17 San Diego 26 211,344 1.6 % 14,962 2.0 % 70.79 Austin 1 5,454 — % 405 0.1 % 74.28 Total 70 1,738,849 13.3 % $ 104,902 13.8 % $ 60.33 2031 and Beyond San Francisco Bay Area 34 2,437,362 18.6 % $ 186,678 24.5 % $ 76.59 Los Angeles 59 1,164,409 8.9 % 65,463 8.7 % 56.22 Seattle 32 1,365,088 10.5 % 60,160 7.8 % 44.07 San Diego 47 1,508,823 11.6 % 99,497 13.1 % 65.94 Austin 18 621,301 4.8 % 28,688 3.9 % 46.17 Total 190 7,096,983 54.4 % $ 440,486 58.0 % $ 62.07 ________________________ (1) Includes 100% of consolidated property partnerships. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 21 Stabilized Portfolio Lease Expirations by Region ($ in thousands, except for Annualized Base Rent per sq. ft.)
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# Tenant Name Region Annualized Base Rental Revenue (2) Rentable Square Feet Percentage of Total Annualized Base Rental Revenue Percentage of Total Rentable Square Feet Year(s) of Significant Lease Expiration(s) (3) Weighted Average Remaining Lease Term (Years) 1 Global technology company Seattle / San Diego $ 44,696 849,826 5.9 % 5.0 % 2032 / 2033 / 2037 7.1 2 Cruise LLC San Francisco Bay Area 35,449 374,618 4.7 % 2.2 % 2031 5.4 3 Stripe, Inc. San Francisco Bay Area 33,110 425,687 4.4 % 2.5 % 2034 8.0 4 Adobe Systems, Inc. San Francisco Bay Area / Seattle 27,897 537,368 3.7 % 3.1 % 2027 (4) / 2031 4.9 5 Salesforce, Inc. San Francisco Bay Area / Seattle 24,706 472,016 3.3 % 2.8 % 2029 / 2030 / 2032 3.9 6 Okta, Inc. San Francisco Bay Area 24,206 293,001 3.2 % 1.7 % 2028 2.3 7 DoorDash, Inc. San Francisco Bay Area 23,842 236,759 3.1 % 1.4 % 2032 5.6 8 Netflix, Inc. Los Angeles 21,854 361,388 2.9 % 2.1 % 2032 6.1 9 Cytokinetics, Inc. San Francisco Bay Area 18,167 234,892 2.4 % 1.4 % 2033 7.3 10 Box, Inc. San Francisco Bay Area 16,853 287,680 2.2 % 1.7 % 2028 2.0 11 DIRECTV, LLC Los Angeles 16,085 532,956 2.1 % 3.1 % 2026 / 2027 (5) 1.2 12 Tandem Diabetes Care, Inc. San Diego 15,884 181,949 2.1 % 1.1 % 2035 8.8 13 Synopsys, Inc. San Francisco Bay Area 15,492 342,891 2.0 % 2.0 % 2030 4.2 14 Neurocrine Biosciences, Inc. San Diego 14,397 273,021 1.9 % 1.6 % 2029 / 2031 4.7 15 Viacom International, Inc. Los Angeles 13,718 220,330 1.8 % 1.3 % 2028 2.5 16 Indeed, Inc. Austin CBD 13,430 330,394 1.8 % 1.9 % 2034 8.5 17 Sony Group Corporation San Francisco Bay Area / Los Angeles 13,397 131,642 1.8 % 0.8 % 2030 3.7 18 Amazon.com Seattle 12,921 283,979 1.7 % 1.7 % 2030 3.6 19 Nektar Therapeutics, Inc. San Francisco Bay Area 12,297 135,974 1.6 % 0.8 % 2030 3.6 20 Splunk, Inc. San Francisco Bay Area 10,323 100,850 1.4 % 0.6 % 2031 5.4 Total Top 20 Tenants $ 408,724 6,607,221 54.0 % 38.8 % 5.0 ________________________ (1) Includes subsidiaries of the tenant listed. (2) The information presented is based upon Annualized Base Rent as of June 30, 2026 and includes 100% of consolidated property partnerships. (3) Significant lease expirations include those greater than 25,000 rentable square feet. (4) The 2027 lease expiration represents 31,409 rentable square feet that expires on June 30, 2027. (5) The 2026 lease expiration represents 49,255 rentable square feet that expires on September 30, 2026, and the 2027 lease expiration represents the remaining 483,701 rentable square feet that expires on September 30, 2027. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 22 Top 20 Tenants (1) ($ in thousands)
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Annualized Base Rent (2) Square Feet (2) Technology, 51% Media, 6% Professional, Business, and Other Services, 9% Finance, Insurance, and Real Estate, 7% Life Science and Health Care, 19% Other, 8% Technology, 48% Media, 8% Professional, Business, and Other Services, 10% Finance, Insurance, and Real Estate, 7% Life Science and Health Care, 17% Other, 10% ________________________ (1) Based on the North American Industry Classification System as of June 30, 2026. (2) Includes 100% of consolidated property partnerships. Based on occupied square footage in the Stabilized Portfolio as of June 30, 2026, excluding month-to-month and intercompany leases. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 23 Tenant Industry Diversification (1)
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Submarket Month of Acquisition Acreage Purchase Price (1) 1st Quarter Land 1900 Broadway (2) Other Peninsula February 1.1 $ 36.0 2nd Quarter None — — Total 1.1 $ 36.0 ________________________ (1) Excludes acquisition-related costs and purchase price credits. (2) During the three months ended March 31, 2026, acquired an interest in a fully-entitled land site that can support a 251,000-square-foot office building. Concurrent with closing, signed a 20-year lease with Cooley LLP for approximately 145,000 square feet, bringing the project to 58% leased. Our joint venture partner contributed $9.0 million toward the purchase of the land. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 24 2026 Acquisitions ($ in millions)
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Operating Property Dispositions Submarket Month of Disposition Number of Buildings Rentable Square Feet / No. of Units Sales Price (1) 1st Quarter Office Kilroy Sabre Springs (2) I-15 Corridor January 3 427,764 $ 124.5 12348 High Bluff Drive (Del Mar Tech Center) Del Mar March 1 39,192 21.0 Total 4 466,956 $ 145.5 2nd Quarter Residential Hollywood Residential Properties (3) Hollywood April 393 units $ 202.0 Total Office and Residential $ 347.5 Development Pipeline Under Contract (4) (5) Submarket Acreage Under Contract Anticipated Sales Price (1) 1633 26th Street West Los Angeles 2 acres $ 41.0 Santa Fe Summit - PA1 56 Corridor 5 acres 38.0 Santa Fe Summit - PA2 56 Corridor 17 acres 86.0 Total Anticipated Proceeds $ 165.0 ________________________ (1) Represents actual or anticipated gross sales price before the impact of commissions, closing costs, and purchase price credits. (2) Kilroy Sabre Springs includes the following buildings: 13480, 13500, and 13520 Evening Creek Drive North, San Diego, CA. (3) The Hollywood Residential Properties include the 200-unit Columbia Square Living property located at 1550 N. El Centro Avenue, Los Angeles, CA and the 193-unit Jardine property located at 6390 De Longpre Avenue, Los Angeles, CA. (4) Subject to a purchase and sale agreement and non-refundable deposit as of the date of this filing. (5) All development sites are anticipated to close upon receipt of residential entitlements and permits, which is expected to occur beginning in phases in late 2026. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 25 2026 Dispositions and Assets Under Contract ($ in millions)
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Property Venture Partner Submarket Portfolio Rentable Square Feet KRC Ownership % (1) 100 First Street, San Francisco, CA Norges Bank Investment Management San Francisco CBD Stabilized 480,457 56% 303 Second Street, San Francisco, CA Norges Bank Investment Management San Francisco CBD Stabilized 784,658 56% 900 Jefferson Avenue and 900 Middlefield Road, Redwood City, CA (2) Local developer Other Peninsula Stabilized 347,842 93% 1900 Broadway, Redwood City, CA Local developer Other Peninsula Development 251,000 97% Stabilized Portfolio Consolidated Venture Net Operating Income Reconciliation Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cash Operating Revenues: Base rent $ 26,906 $ 26,850 $ 53,195 $ 54,330 Tenant reimbursements 3,767 3,946 7,759 7,459 Other revenues (3) 36 3,284 80 2,201 Settlement and restoration fee income — 212 — 212 Other property income (4) 533 730 1,028 1,224 Total cash operating revenues 31,242 35,022 62,062 65,426 Cash Operating Expenses: Property expenses 6,890 7,073 13,160 13,283 Real estate taxes 2,287 2,230 4,574 4,460 Total cash operating expenses 9,177 9,303 17,734 17,743 Cash Net Operating Income 22,065 25,719 44,328 47,683 Deferred income and lease incentives, net (5) 371 371 742 742 Amortization of deferred revenue related to tenant-funded tenant improvements 431 472 872 934 Straight-line rents, net (1,520) (1,079) (2,313) (1,970) Net Operating Income 21,347 25,483 43,629 47,389 Lease termination fees 134 10,724 268 10,858 General and administrative expenses (9) (9) (18) (9) Leasing costs (41) (33) (63) (52) Other expense (1) — (1) (4) Depreciation and amortization (7,937) (8,432) (15,930) (16,554) Net Income $ 13,493 $ 27,733 $ 27,885 $ 41,628 KRC Share of Cash Net Operating Income (6) $ 14,050 $ 16,752 $ 28,583 $ 31,431 ________________________ (1) Reflects the KRC ownership percentage at time of agreement. For 900 Jefferson Avenue and 900 Middlefield Road, actual percentage may vary depending on cash flows or promote structure. For 1900 Broadway, reflects expected KRC ownership percentage upon completion of development activities. (2) For 900 Jefferson Avenue and 900 Middlefield Road, KRC and our partner receive an 8% preferred return on invested capital. Any cash flows received above that amount are shared with our partner as a 10% promote, with the remaining proceeds distributed according to our respective ownership percentages. (3) Primarily comprised of contractual parking income and net of revenues deemed uncollectible. (4) Primarily comprised of transient parking income. (5) Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. (6) Reflects KRC share after consolidating elimination entries. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 26 Consolidated Ventures (Noncontrolling Property Partnerships) (unaudited, $ in thousands)
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03 Development – Stabilized Development & Redevelopment Projects – In-Process Development & Redevelopment Projects – Future Development Pipeline Kilroy Oyster Point Phase 2, South San Francisco, CA
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% Leased Location Construction Start Date Stabilization Date (1) Rentable Square Feet Total Estimated Investment Total Project % Occupied As of 6/30/2026 As of Filing 1st Quarter 363, 365, and 369 Oyster Point Boulevard (Kilroy Oyster Point - Phase 2) South San Francisco 2Q 2021 1Q 2026 871,738 $ 1,175 7% 49% 49% 2nd Quarter None — — —% —% —% Total 871,738 $ 1,175 7% 49% 49% ________________________ (1) Represents the earlier of the date the project achieves 95% occupancy or one year from substantial completion of base building components. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 28 Stabilized Development & Redevelopment Projects ($ in millions)
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% Leased UNDER CONSTRUCTION Location Construction Start Date Estimated Stabilization Date Estimated Rentable Square Feet Total Estimated Investment Total Cash Costs Incurred As of 6/30/2026 As of Filing None — $ — $ — —% —% Total — $ — $ — —% —% Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 29 In-Process Development & Redevelopment Projects ($ in millions)
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Location Approx. Developable Square Feet / Resi Units (1) Total Cash Costs Incurred as of 6/30/2026 (2) San Francisco Bay Area Flower Mart San Francisco CBD 2,300,000 $ 683 Kilroy Oyster Point - Phases 3 and 4 South San Francisco 875,000 - 1,000,000 249 1900 Broadway (3) Other Peninsula 251,000 66 Los Angeles 1633 26th Street (4) West Los Angeles 190,000 16 Seattle SIXO Lake Union / Denny Regrade 925,000 and 650 units 197 San Diego Santa Fe Summit (4) 56 Corridor 600,000 - 650,000 118 2045 Pacific Highway Little Italy / Point Loma 275,000 57 Kilroy East Village East Village 1,100 units 68 Austin Stadium Tower Stadium District / Domain 493,000 76 Total $ 1,530 ________________________ (1) Project scope, including the estimated developable square feet or number of residential units, could change materially from estimates provided due to one or more of the following: significant changes in the economy, market conditions, tenant requirements and demands, construction costs, new supply, regulatory and entitlement processes, or project design. (2) Represents costs incurred as of June 30, 2026, net of municipal bonds proceeds received related to public infrastructure improvements, and excluding accrued liabilities recorded in accordance with GAAP. (3) Owned in a consolidated joint venture. Project is 58% pre-leased and is anticipated to commence construction in 2027, with delivery scheduled for 2030, at which time the Company’s ownership interest is expected to be 97%. (4) Subject to signed purchase and sale agreements and non-refundable deposits as of the date of this filing. Refer to page 25 “2026 Dispositions and Assets Under Contract” for additional information. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 30 Future Development Pipeline ($ in millions)
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04 Debt & Capitalization Data – Capital Structure – Debt Maturities – Debt Covenants & Leverage Ratios Blackwelder, Culver City, CA
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Shares / Units Aggregate Principal Amount or $ Value Equivalent % of Total Market Capitalization Stated Rate (1) Effective Rate (2) Maturity Date Unsecured Debt Revolving Credit Facility (3) $ — — % 4.68 % 4.68 % 7/31/2030 Term Loan Facility (3) 200,000 2.2 % 4.79 % 5.17 % 7/31/2031 Private Placement Senior Notes Series B due 2026 (4) 200,000 2.2 % 4.35 % 4.44 % 10/18/2026 Private Placement Senior Notes Series A due 2027 175,000 2.0 % 3.35 % 3.42 % 2/17/2027 Private Placement Senior Notes Series B due 2029 75,000 0.8 % 3.45 % 3.51 % 2/17/2029 Private Placement Senior Notes due 2031 350,000 3.9 % 4.27 % 4.32 % 1/31/2031 Senior Notes due 2028 (5) 400,000 4.5 % 4.75 % 4.87 % 12/15/2028 Senior Notes due 2029 400,000 4.5 % 4.25 % 4.38 % 8/15/2029 Senior Notes due 2030 500,000 5.5 % 3.05 % 3.17 % 2/15/2030 Senior Notes due 2032 (5) 425,000 4.7 % 2.50 % 2.63 % 11/15/2032 Senior Notes due 2033 (5) 450,000 5.0 % 2.65 % 2.73 % 11/15/2033 Senior Notes due 2035 400,000 4.5 % 5.88 % 6.08 % 10/15/2035 Senior Notes due 2036 400,000 4.5 % 6.25 % 6.41 % 1/15/2036 $ 3,975,000 44.3 % 4.13 % 4.45 % Secured Debt (6) 100 Hooper St., San Francisco Bay Area $ 146,837 1.6 % 3.57 % 3.81 % 12/1/2026 320 Westlake Ave. N. and 321 Terry Ave. N., Seattle 75,390 0.8 % 4.48 % 4.58 % 7/1/2027 One Paseo Mixed-Use Campus, San Diego 375,000 4.3 % 5.90 % 6.13 % 8/10/2034 $ 597,227 6.7 % 5.15 % 5.36 % Total Debt $ 4,572,227 51.0 % 4.26 % 4.57 % Equity and Noncontrolling Interest in the Operating Partnership (7) Common limited partnership units outstanding (8) 1,133,562 $ 42,475 0.5 % Shares of common stock outstanding 116,308,988 4,358,098 48.5 % Total Equity and Noncontrolling Interest in the Operating Partnership $ 4,400,573 49.0 % Total Market Capitalization $ 8,972,800 100.0 % ________________________ (1) The unsecured revolving credit facility and unsecured term loan facility's interest rates were calculated using the Secured Overnight Financing Rate (“SOFR”) and a margin of 1.000% and 1.150%, respectively, based on the Company’s credit rating, as of June 30, 2026. All other stated rates represent fixed interest rates. (2) Includes the impact of an unused facility fee, amortization of deferred financing costs, and amortization of premiums/discounts. (3) During the quarter ended June 30, 2026, amended and restated the terms of the unsecured revolving credit and term loan facilities increasing the borrowing capacities of the unsecured revolving credit facility from $1.10 billion to $1.25 billion and the unsecured term loan facility from $200.0 million to $250.0 million. The additional $50.0 million of term loan capacity consists of delayed-draw commitments that may be drawn upon through June 11, 2027. In addition, the maturity date of the revolving credit facility was extended to July 31, 2030, and the maturity date of the term loan facility was extended to July 31, 2031. The unsecured revolving credit facility has two six-month extension options available. (4) In July, repaid the outstanding $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026, at par. (5) Green bond. (6) The mortgage notes are secured by the properties listed. (7) Value based on closing share price of $37.47 as of June 30, 2026. (8) Includes common units of the Operating Partnership not owned by the Company. Excludes noncontrolling interests in consolidated property partnerships. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 32 Capital Structure As of June 30, 2026 ($ in thousands)
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Unsecured BondsUnsecured Private Placement NotesUnsecured Green BondsSecured Debt Unsecured Term Loan 2026 (1) 2027 2028 2029 2030 (2) 2031 2032 2033 2034 2035 2036 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Total Debt (3) $348,102 $249,125 $400,000 $475,000 $500,000 $550,000 $425,000 $450,000 $375,000 $400,000 $400,000 Weighted Average Stated Rate 4.02% 3.69% 4.75% 4.12% 3.05% 4.46% 2.50% 2.65% 5.90% 5.88% 6.25% % of Total 8% 5% 9% 10% 11% 12% 9% 10% 8% 9% 9% ________________________ (1) In July, repaid the outstanding $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026, at par. (2) As of June 30, 2026, there was no outstanding balance on the unsecured revolving credit facility maturing on July 31, 2030. The unsecured revolving credit facility has two six-month extension options available. (3) Includes scheduled principal payments for amortizing loans. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 33 Debt Maturities As of June 30, 2026 ($ in thousands)
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KEY DEBT COVENANTS (1) Covenant Actual Performance as of June 30, 2026 Unsecured Credit and Term Loan Facilities and Private Placement Notes: Total debt to total asset value less than 60% 34% Fixed charge coverage ratio greater than 1.5x 3.1x Unsecured debt ratio greater than 1.67x 2.81x Unencumbered asset pool debt service coverage greater than 1.75x 3.40x Unsecured Senior Notes due 2028, 2029, 2030, 2032, 2033, 2035, and 2036: Total debt to total asset value less than 60% 35% Interest coverage greater than 1.5x 4.6x Secured debt to total asset value less than 40% 5% Unencumbered asset pool value to unsecured debt greater than 150% 297% NET DEBT TO COMPANY'S SHARE OF EBITDAre RATIOS 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Total principal amount of debt $ 4,572,227 $ 4,623,842 $ 4,625,442 $ 4,627,026 $ 4,628,595 Cash and cash equivalents (253,805) (192,904) (179,316) (372,416) (193,129) Net debt $ 4,318,422 $ 4,430,938 $ 4,446,126 $ 4,254,610 $ 4,435,466 Trailing 12-months Company's Share of EBITDAre (2)(3) $ 615,742 $ 631,178 $ 637,314 $ 660,337 $ 674,686 Trailing 12-months Company's Share of Adjusted EBITDAre (2)(3) $ 608,217 $ 624,388 $ 630,344 $ 650,782 $ 658,562 Net Debt to Company's Share of EBITDAre Ratio 7.0x 7.0x 7.0x 6.4x 6.6x Net Debt to Company's Share of Adjusted EBITDAre Ratio 7.1x 7.1x 7.1x 6.5x 6.7x ________________________ (1) All covenant ratio titles utilize terms and are calculated as defined in the respective debt and credit agreements. (2) Calculated as the sum of the Company's Share of EBITDAre and Adjusted EBITDAre for the trailing four quarters. (3) Refer to page 45 for reconciliations of historical GAAP Net Income Available to Common Stockholders to EBITDAre for the three months ended March 31, 2025, December 31, 2024, and September 30, 2024. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 34 Debt Covenants & Leverage Ratios ($ in thousands)
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05 Non-GAAP Supplemental Measures West8, Seattle, WA
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This section includes 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 July 27, 2026 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’s NOI metrics are defined as follows: • Net Operating Income - Consolidated operating revenues comprised of rental income and other property income, excluding lease termination fees, less consolidated property and related expenses (property expenses, real estate taxes, and ground leases). • Cash Net Operating Income - NOI adjusted for certain non-cash amounts (e.g. straight-line rents, net, amortization of deferred revenue related to tenant- funded tenant improvements, deferred income and lease incentives, net, deferred settlement and restoration fee income, the amortization of net below market rents, and related provision for bad debts). • Same Property Cash Net Operating Income - Cash NOI for all of the properties that were owned and included in the Company’s Stabilized Portfolio for two comparable reporting periods. The Company excludes lease termination fees from the calculation of rental revenue for the Company’s NOI metrics as they are non-recurring in nature and its exclusion will provide a measure that the Company believes is more indicative of its operating performance. Other real estate investment trusts (“REITs”) may use different methodologies for calculating NOI, Cash NOI, and Same Property Cash NOI, and accordingly, the Company’s NOI metrics may not be comparable to other REITs. The Company uses these NOI metrics to evaluate its operating performance on a portfolio basis since the NOI metrics allow the Company to evaluate the impact 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 its NOI metrics provide useful information to the investment community about the Company’s financial and operating performance when compared to other REITs since NOI, Cash NOI, and Same Property Cash NOI are generally recognized as standard measures of performance in the real estate industry. Because the Company’s NOI metrics exclude lease termination fees, leasing costs, general and administrative expenses, interest expense, depreciation and amortization, other income and expenses, impairment of real estate assets, and gains and losses, they provide performance measures that, when compared year over year, reflect 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. Additionally, because Same Property Cash NOI excludes the change in Cash NOI from developed, redeveloped, acquired, 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. The Company’s NOI metrics should not be viewed as alternative measures of the Company’s financial performance since they do not reflect general and administrative expenses, leasing costs, lease termination fees, 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. In addition, Same Property 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. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 36 Management Statements on Non-GAAP Supplemental Measures
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EBITDA, EBITDAre, Company's Share of EBITDAre, and Company's Share of Adjusted EBITDAre: The Company calculates Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for Real Estate (“EBITDAre”) in accordance with the 2017 White Paper on EBITDAre approved by the Board of Governors of Nareit. Management believes that consolidated earnings before interest expense, tax expense, depreciation and amortization, gain/loss on early extinguishment of debt, gains and losses on the sale of depreciable real estate and non-real estate assets, net income attributable to noncontrolling interests, preferred dividends and distributions, original issuance costs of redeemed preferred stock and preferred units, and impairment losses (EBITDAre) is a useful supplemental measure of the Company’s operating performance. When considered with other GAAP measures and FFO, management believes EBITDAre 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 EBITDAre as it is used in several of the Company’s financial covenants for both its secured and unsecured debt. However, EBITDAre 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 EBITDAre and, accordingly, the Company’s EBITDAre calculation may not be comparable to those of other REITs. The Company’s Share of EBITDAre is EBITDAre less amounts attributable to noncontrolling interests in consolidated property partnerships. The Company’s Share of Adjusted EBITDAre is the Company’s share of EBITDAre less interest income. Net Debt to Company's Share of EBITDAre Ratio and Net Debt to Company's Share of Adjusted EBITDAre Ratio: Management believes that the ratios of the principal balance of debt, less cash and cash equivalents and certificates of deposit, divided by the Company’s share of EBITDAre as well as the Company's share of Adjusted EBITDAre are useful supplemental measures of the level of borrowed capital being used to increase the potential return of the Company’s real estate investments and proxies for a measure management believes is used by many lenders and rating agencies to evaluate the Company’s ability to repay and service its debt obligations. The Company believes the ratios are beneficial disclosure to investors as supplemental means of evaluating its ability to meet obligations senior to those of the equity holders. Other REITs may use different methodologies for calculating these ratios and, accordingly, the Company’s Net Debt to Company’s Share of EBITDAre Ratio and Net Debt to Company's Share of Adjusted EBITDAre Ratio may not be comparable to those of other REITs. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 37 Management Statements on Non-GAAP Supplemental Measures, continued
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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. The 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. The Company also adds back net income attributable to noncontrolling common units of the Operating Partnership because it reports 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 those of 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. 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, straight-line rents, net, 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, lease related adjustments (including non-cash ground rent expense beginning in Q1 2026), gains and losses on sales of non-real estate assets, 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 those of other REITs. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 38 Management Statements on Non-GAAP Supplemental Measures, continued
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06 Definitions & Reconciliations 2100 Kettner, San Diego, CA
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Annualized Base Rent: Annualized monthly contractual base rents from existing tenants in occupancy, including the impact of the straight-lining of rent escalations and the amortization of free rent periods and excluding 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. 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. Effective Rate: Represents the Stated Rate, including the impact of the amortization of any premiums/discounts and debt issuance costs. 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, life science, and retail properties, and the date of 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"): Vacant space at acquisition properties and 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. These costs are not subtracted in the calculation of FAD. Fixed Charge Coverage Ratio - Company’s Share of EBITDAre: Calculated as Company’s Share of current period EBITDAre divided by gross interest expense (excluding amortization of deferred debt issuance costs and debt discounts/premiums) and current year accrued preferred dividends. FFO Payout Ratio: Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted stock unitholders) divided by FFO attributable to common stockholders and unitholders. Gross Lease Types: Represents leases where the landlord is obligated to pay the tenant's proportionate share of certain operating expenses. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 40 Definitions Included in Supplemental
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Interest Coverage Ratio: Calculated as EBITDAre divided by gross interest expense (excluding amortization of deferred debt costs and debt premiums/discounts). Major Repositioning: Space for which significant non-recurring capital expenditures are incurred to reposition and is expected to result in additional revenue generated when re- leased. Capital improvements for this space are not subtracted in the calculation of FAD. Tenant improvement and leasing commissions for this space are included in 2nd Gen Capital Expenditures. Net Leases Types: Represents leases where the tenant is obligated to pay a share of certain operating expenses. Net Operating Income Margin: Calculated as Net Operating Income divided by total revenues. Percentage Leased Represents Percentage Occupied, adjusted for leases executed but have not yet achieved revenue recognition. Percentage Occupied Represents economic occupancy for space that has achieved revenue recognition for the associated lease agreements. Redevelopment Properties/Projects: Properties or projects for which the Company expects 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. Retention Rate (Leases Executed): Calculated as the percentage of square footage renewed by existing tenants at lease expiration or termination divided by the square footage of space renewed by existing tenants and lease expirations during the period. Excludes square footage of short-term leases. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 41 Definitions Included in Supplemental, continued
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Retention Rate (Leases Executed Including Subtenants): Retention rate, inclusive of leases with subtenants where the Company does not expect to experience downtime in occupancy between leases. Same Property Portfolio: The Same Property Portfolio includes all properties owned and included in the Stabilized Portfolio for two comparable reporting periods, i.e., owned and included in the Stabilized Portfolio as of January 1, 2025 and still owned and included in the Stabilized Portfolio as of June 30, 2026 . It includes the residential portfolio, which consists of the 608 residential units at the Company’s One Paseo mixed-use property in the Del Mar, California submarket. Excludes undeveloped land, development and Redevelopment Properties currently committed for construction, under construction, or in the tenant improvement phase, and properties classified as held for sale. Same Property Portfolio Rollforward Number of Buildings Square Feet Same Property Portfolio as of December 31, 2025 112 15,549,413 Stabilized Acquisition Properties Added (1) 2 103,731 Dispositions and Held for Sale (2) (1) (39,192) Remeasurements — 3,346 Same Property Portfolio as of June 30, 2026 113 15,617,298 Stabilized Development Property Excluded from Same Property 5 972,226 Stabilized Acquisition Properties Excluded from Same Property 5 538,532 Stabilized Portfolio as of June 30, 2026 123 17,128,056 ________________________ (1) One Paseo Junction was added to the Same Property Portfolio in 2026. (2) Excludes the two residential properties classified as held for sale as of March 31, 2026 and disposed of in April 2026, measured in units, as well as Kilroy Sabre Springs, which was classified as held for sale as of December 31, 2025 and not included in the Same Property Portfolio. 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. Excludes leases with a lease term of less than one year. Capital expenditures for space that was vacant when the property was acquired and tenant improvement and leasing commission capital expenditures for projects classified as Major Repositioning are captured in 2nd Gen Capital Expenditures. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 42 Definitions Included in Supplemental, continued
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Stabilized Portfolio: The Stabilized Portfolio includes all properties with the exception of the development and Redevelopment Properties currently committed for construction, under construction, or in the tenant improvement phase, undeveloped land, and properties classified as held for sale. Stabilized Portfolio Rollforward (1) Number of Buildings Square Feet Stabilized Portfolio as of December 31, 2025 121 16,292,164 Stabilized Development Properties 3 871,738 Dispositions (2) (1) (39,192) Remeasurements — 3,346 Stabilized Portfolio as of June 30, 2026 123 17,128,056 ________________________ (1) Excludes our residential property measured in units. (2) Excludes Kilroy Sabre Springs, which was classified as held for sale as of December 31, 2025 and not included in the Stabilized Portfolio, and the two residential properties disposed of in April 2026, measured in units. Stated Rate: The rate at which interest expense is recorded per the respective loan documents. Straight-Line Rents, Net: 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. Tenant Improvement Phase: Represents projects that have reached cold shell condition and are ready for tenant improvements, which may require additional major base building modifications before being placed in service. Total Debt Represents the gross aggregate principal amount due as of June 30, 2026. Excludes unamortized deferred financing costs for the unsecured revolving credit and term loan facilities, unsecured senior notes, and secured debt, and unamortized discounts for the unsecured senior notes. Total Portfolio: The Total Portfolio includes all properties, with the exception of the Development and Redevelopment Properties currently committed for construction, under construction, or in the tenant improvement phase, and undeveloped land. Total Portfolio Number of Buildings Square Feet Stabilized Portfolio 123 17,128,056 Total Portfolio as of June 30, 2026 123 17,128,056 Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 43 Definitions Included in Supplemental, continued
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Three Months Ended Six Months Ended 6/30/2026 6/30/2025 6/30/2026 6/30/2025 Net Income Available to Common Stockholders $ 19,905 $ 68,449 $ 638 $ 107,457 Net income available to noncontrolling common units of the Operating Partnership 193 663 8 1,038 Net income attributable to noncontrolling interests in consolidated property partnerships 4,617 10,456 9,396 14,754 Net Income 24,715 79,568 10,042 123,249 Adjustments: Impairment of real estate assets — — 61,778 — Gains on sales of depreciable operating properties — (16,554) (23,525) (16,554) Depreciation and amortization 93,560 87,625 187,904 174,744 Interest expense 41,634 30,844 80,145 61,992 Interest income (1,247) (512) (2,201) (1,646) Other (income) expense 248 (190) (141) (33) Leasing costs 2,814 2,277 5,824 5,150 General and administrative expenses 18,933 18,475 39,632 35,376 Lease termination fees (364) (10,754) (762) (11,260) Net Operating Income 180,293 190,779 358,696 371,018 Other (2) 68 78 137 156 Deferred settlement and restoration fee income — (1,689) — (2,026) Amortization of net below market rents (651) (845) (1,292) (1,691) Straight-line rents, net 1,502 3,354 801 7,967 Amortization of deferred revenue related to tenant-funded tenant improvements (3,315) (3,770) (6,533) (7,458) Deferred income and lease incentives, net (3) (965) (771) (2,025) (1,605) Cash Net Operating Income 176,932 187,136 349,784 366,361 Non-Same Property Cash Net Operating Income (718) (13,568) (4,928) (27,131) Same Property Cash Net Operating Income $ 176,214 $ 173,568 $ 344,856 $ 339,230 ________________________ (1) Based upon the Same Property Portfolio as of June 30, 2026, which was comprised of 113 properties. (2) Includes other non-cash amounts primarily related to ground rent expense. (3) Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 44 Reconciliation of Net Income Available to Common Stockholders to Same Property Cash Net Operating Income (1) (unaudited, $ in thousands)
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Three Months Ended 3/31/2025 12/31/2024 9/30/2024 Net Income Available to Common Stockholders $ 39,008 $ 59,460 $ 52,378 Interest expense 31,148 33,245 36,408 Depreciation and amortization 87,119 89,121 91,879 Taxes (1) 51 — — EBITDA 157,326 181,826 180,665 Net income attributable to noncontrolling common units of the Operating Partnership 375 593 509 Net income attributable to noncontrolling interests in consolidated property partnerships 4,298 4,981 4,786 Gain on sales of long-lived assets — (5,979) — EBITDAre 161,999 181,421 185,960 EBITDAre attributable to noncontrolling interests in consolidated property partnerships (7,280) (7,843) (7,485) Company's Share of EBITDAre 154,719 173,578 178,475 Interest income (1,134) (4,790) (9,688) Company's Share of Adjusted EBITDAre $ 153,585 $ 168,788 $ 168,787 ________________________ (1) Commencing in January 1, 2025, the Company began adjusting for taxes, which are included in Other income (expense) on the Company’s Consolidated Statement of Operations. EBITDA, EBITDAre, and Adjusted EBITDAre for the periods ending December 31, 2024 and September 30, 2024, have not been conformed to our new presentation to maintain consistency with previously report financial ratios. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 45 Reconciliation of Historical Net Income Available to Common Stockholders to Company’s Share of Adjusted EBITDAre (unaudited, $ in thousands)
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Three Months Ended Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 GAAP Net Cash Provided by Operating Activities $ 78,207 $ 150,695 $ 109,078 $ 176,568 $ 143,746 $ 228,902 $ 280,667 Adjustments: Recurring tenant improvements, leasing commissions, and capital expenditures (28,111) (18,743) (31,724) (36,959) (34,040) (46,854) (51,418) Depreciation of non-real estate furniture, fixtures, and equipment (1,429) (1,459) (1,410) (1,407) (1,382) (2,888) (2,766) Net changes in operating assets and liabilities (1) 42,682 (30,811) 22,819 (31,579) 9,245 11,871 6,937 Noncontrolling interests in consolidated property partnerships’ share of FFO and FAD (7,100) (7,207) (6,177) (5,411) (13,201) (14,307) (19,691) Cash adjustments related to investing and financing activities (623) (1,369) (2,052) (273) (479) (1,992) (744) Funds Available for Distribution $ 83,626 $ 91,106 $ 90,534 $ 100,939 $ 103,889 $ 174,732 $ 212,985 ________________________ (1) Primarily includes changes in the following assets and liabilities: marketable securities, current receivables, prepaid expenses and other assets, accounts payable, accrued expenses and other liabilities, rents received in advance, and tenant security deposits. Where Innovation Works Kilroy Realty Q2 2026 Supplemental Report | 46 Reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution (unaudited, $ in thousands)
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This Supplemental Financial Report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, among other things, information concerning lease expirations, debt maturities, potential investments, development and redevelopment activity, projected construction costs, dispositions, and other forward-looking financial data. In some instances, forward-looking statements can be identified by the use of forward-looking terminology such as “expect,” “future,” “will,” “would,” “pursue,” or “project”, and variations of such words and similar expressions that do not relate to historical matters. Forward-looking statements are based on Kilroy Realty Corporation’s current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of Kilroy Realty Corporation’s control. Accordingly, actual performance, results, and events may vary materially from those indicated or implied in the forward- looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including actual and potential tariffs and periods of heightened inflation, and their effect on us and our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California, Texas, and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the media industry, may have on our tenants’ businesses; our ability to re-lease property at or above current market rates; reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer's office premises; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service, and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment, and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices, or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed, and Redeveloped properties; the ability to successfully complete development and Redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, governmental permits and authorizations for our development and Redevelopment properties; increases in anticipated capital expenditures, tenant improvement, and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations, or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers' financial condition, and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; and our ability to maintain our status as a REIT. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect Kilroy Realty Corporation’s business and financial performance, see the factors included under the caption “Risk Factors” in Kilroy Realty Corporation’s annual report on Form 10-K for the year ended December 31, 2025, 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. Where Innovation Works