krc-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-12675 (Kilroy Realty Corporation)

Commission File Number: 000-54005 (Kilroy Realty, L.P.)

KILROY REALTY CORPORATION

KILROY REALTY, L.P.

(Exact name of registrant as specified in its charter)



Kilroy Realty Corporation	Maryland	95-4598246
	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Kilroy Realty, L.P.	Delaware	95-4612685
	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

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

(Address of principal executive offices) (Zip Code)

(310) 481-8400


(Registrant's telephone number, including area code)

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


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


Securities registered pursuant to Section 12(g) of the Act:
Registrant			Title of each class
Kilroy Realty, L.P.			Common Units Representing Limited Partnership Interests

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Kilroy Realty Corporation Yes ☑ No ☐

Kilroy Realty, L.P. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Kilroy Realty Corporation Yes ☑ No ☐

Kilroy Realty, L.P. Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Kilroy Realty Corporation

Large accelerated filer ☑ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

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

Kilroy Realty, L.P.

Large accelerated filer ☐ Accelerated filer ☐

Non-accelerated filer ☑ Smaller reporting company ☐

Emerging growth company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Kilroy Realty Corporation Yes ☐ No ☑

Kilroy Realty, L.P. Yes ☐ No ☑

As of July 23, 2026, 116,308,988 shares of Kilroy Realty Corporation common stock, par value $.01 per share, were outstanding.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended June 30, 2026 of Kilroy Realty Corporation and Kilroy Realty, L.P. Unless stated otherwise or the context otherwise requires, references to “Kilroy Realty Corporation” or the “Company,” “we,” “our,” and “us” mean Kilroy Realty Corporation, a Maryland corporation, and its controlled and consolidated subsidiaries, and references to “Kilroy Realty, L.P.” or the “Operating Partnership” mean Kilroy Realty, L.P., a Delaware limited partnership, and its controlled and consolidated subsidiaries.

The Company is a real estate investment trust, or REIT, and the general partner of the Operating Partnership. As of June 30, 2026, the Company owned an approximate 99.0% common general partnership interest in the Operating Partnership and the remaining approximate 1.0% common limited partnership interest was owned by non-affiliated investors. As the sole general partner of the Operating Partnership, the Company exercises exclusive and complete discretion over the Operating Partnership’s day-to-day management and control.

We believe it is important to understand the differences between the Company and the Operating Partnership in the context of how the Company and the Operating Partnership operate as an interrelated, consolidated company. The Company does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing equity from time to time and guaranteeing certain debt of the Operating Partnership. The Operating Partnership owns substantially all of the assets of the Company either directly or through its subsidiaries, conducts the operations of the Company’s business, and is structured as a limited partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Company, which the Company generally contributes to the Operating Partnership in exchange for units of partnership interest, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, the incurrence of indebtedness, or the issuance of units of partnership interest.

The presentation of noncontrolling interests, stockholders’ equity, and partners’ capital are the main areas of difference between the consolidated financial statements of the Company and those of the Operating Partnership. The differences between stockholders’ equity, partners’ capital, and noncontrolling interests result from the differences in the equity issued by the Company and the Operating Partnership.

We believe combining the quarterly reports on Form 10-Q of the Company and the Operating Partnership into this single report results in the following benefits:

•Better reflects how management and the analyst community view the business as a single operating unit;

•Enhances investors’ understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management;

•Creates efficiencies for the Company and the Operating Partnership and results in savings in time, effort, and expense; and

•Creates efficiencies for investors by reducing duplicative disclosure and providing a single document for their review.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

QUARTERLY REPORT FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026

TABLE OF CONTENTS


		Page
	PART I – FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS (UNAUDITED) OF KILROY REALTY CORPORATION	1
	Consolidated Balance Sheets as of June 3 0 , 2026 and December 31, 2025	1
	Consolidated Statements of Operations for the Three and Six Months ended June 3 0 , 2026 and 2025	2
	Consolidated Statements of Equity for the Three and Six Months ended June 30 , 2026 and 2025	3
	Consolidated Statements of Cash Flows for the Six Months ended June 3 0 , 2026 and 2025	5
Item 1.	FINANCIAL STATEMENTS (UNAUDITED) OF KILROY REALTY, L.P.	6
	Consolidated Balance Sheets as of June 3 0 , 2026 and December 31, 2025	6
	Consolidated Statements of Operations for the Three and Six Months ended June 3 0 , 2026 and 2025	7
	Consolidated Statements of Capital for the Three and S ix Months ended June 3 0 , 2026 and 2025	8
	Consolidated Statements of Cash Flows for the S ix Months ended June 3 0 , 2026 and 2025	9
	Notes to Unaudited Consolidated Financial Statements	10
Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	23
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	50
Item 4.	CONTROLS AND PROCEDURES (KILROY REALTY CORPORATION AND KILROY REALTY, L.P.)	50
	PART II – OTHER INFORMATION
Item 1.	LEGAL PROCEEDINGS	51
Item 1A.	RISK FACTORS	51
Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	51
Item 3.	DEFAULTS UPON SENIOR SECURITIES	51
Item 4.	MINE SAFETY DISCLOSURES	51
Item 5.	OTHER INFORMATION	51
Item 6.	EXHIBITS	52
SIGNATURES		53

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) OF KILROY REALTY CORPORATION

KILROY REALTY CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited; in thousands, except share data)


	June 30, 2026		December 31, 2025
ASSETS
Real estate assets:
Land	$	1,730,514	$	1,641,913
Buildings and improvements	9,051,287		8,505,486
Undeveloped land and construction in progress	1,602,626		2,387,742
Total real estate assets held for investment	12,384,427		12,535,141
Accumulated depreciation and amortization	(2,936,240)		(2,843,811)
Total real estate assets held for investment, net	9,448,187		9,691,330
Real estate and other assets held for sale, net	—		115,155
Cash and cash equivalents	253,805		179,316

Marketable securities	34,990		30,807
Current receivables (net of allowances of $327 and $244 as of June 30, 2026 and December 31, 2025 respectively)	12,184		12,765
Deferred rent receivables, net	423,968		424,794
Deferred leasing costs and acquisition-related intangible assets, net	264,033		278,232
Right of use ground lease assets, net	127,548		128,116
Prepaid expenses and other assets, net	67,233		54,561

Total assets	$	10,631,948	$	10,915,076
LIABILITIES AND EQUITY
Liabilities:
Secured debt, net	$	590,095	$	592,685
Unsecured debt, net	3,947,034		3,996,774

Accounts payable, accrued expenses, and other liabilities	260,644		288,963
Ground lease liabilities	127,198		127,628
Accrued dividends and distributions	63,422		65,009
Deferred revenue and acquisition-related intangible liabilities, net	117,845		125,628
Rents received in advance and tenant security deposits	77,736		75,701
Liabilities related to real estate assets held for sale	—		4,945
Total liabilities	5,183,974		5,277,333
Commitments and contingencies (Note 10)
Equity:
Stockholders’ Equity:
Common stock, $.01 par value, 280,000,000 shares authorized, 116,308,988 and 118,372,451 shares issued and outstanding	1,163		1,184
Additional paid-in capital	5,166,167		5,230,747
Retained earnings	58,881		188,876
Total stockholders’ equity	5,226,211		5,420,807
Noncontrolling Interests:
Common units of the Operating Partnership	50,935		51,911
Consolidated property partnerships	170,828		165,025
Total noncontrolling interests	221,763		216,936
Total equity	5,447,974		5,637,743
Total liabilities and equity	$	10,631,948	$	10,915,076

See accompanying notes to consolidated financial statements.

KILROY REALTY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except share and per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenues:
Rental income	$	268,321	$	285,071	$	533,651	$	551,315
Other property income	4,050		4,821		8,773		9,421
Total revenues	272,371		289,892		542,424		560,736
Expenses:
Property expenses	60,134		58,575		119,417		117,289
Real estate taxes	28,302		26,765		57,084		55,130
Ground leases	3,278		3,019		6,465		6,039
General and administrative expenses	18,933		18,475		39,632		35,376
Leasing costs	2,814		2,277		5,824		5,150
Depreciation and amortization	93,560		87,625		187,904		174,744
Total expenses	207,021		196,736		416,326		393,728
Other Income (Expenses):
Interest income	1,247		512		2,201		1,646
Interest expense	(41,634)		(30,844)		(80,145)		(61,992)


Other (expense) income	(248)		190		141		33
Gains on sales of depreciable operating properties	—		16,554		23,525		16,554
Impairment of real estate assets	—		—		(61,778)		—
Total other expenses	(40,635)		(13,588)		(116,056)		(43,759)
Net income	24,715		79,568		10,042		123,249
Net income attributable 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)
Total net income attributable to noncontrolling interests	(4,810)		(11,119)		(9,404)		(15,792)




Net income available to common stockholders	$	19,905	$	68,449	$	638	$	107,457
Net income available to common stockholders per share – basic	$	0.17	$	0.58	$	0.01	$	0.91
Net income available to common stockholders per share – diluted	$	0.17	$	0.57	$	0.01	$	0.90
Weighted average shares of common stock outstanding – basic	116,292,405		118,285,328		116,960,748		118,240,208
Weighted average shares of common stock outstanding – diluted	117,062,596		118,683,337		117,699,104		118,673,935

See accompanying notes to consolidated financial statements.

KILROY REALTY CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited; in thousands, except share and per share/unit data)


	Common Stock							Total Stock- holders’ Equity		Noncontrolling Interests		Total Equity
	Number of Shares	Common Stock		Additional Paid-in Capital		Retained Earnings
Balance as of December 31, 2025	118,372,451	$	1,184	$	5,230,747	$	188,876	$	5,420,807	$	216,936	$	5,637,743
Net (loss) income						(19,267)		(19,267)		4,594		(14,673)

Issuance of share-based compensation awards				4,416				4,416				4,416
Non-cash amortization of share-based compensation				5,811				5,811				5,811

Repurchase of common stock	(2,357,739)	(24)		(72,647)				(72,671)				(72,671)
Net settlement of restricted stock units for shares of common stock	264,095	3		(6,973)				(6,970)				(6,970)

Contributions from noncontrolling interests in consolidated property partnerships								—		9,000		9,000
Distributions to noncontrolling interests in consolidated property partnerships								—		(6,380)		(6,380)
Adjustment for noncontrolling interest in the Operating Partnership				(214)				(214)		214		—

Dividends declared per share of common stock and common unit ($0.54 per share/unit)						(66,750)		(66,750)		(612)		(67,362)
Balance as of March 31, 2026	116,278,807	1,163		5,161,140		102,859		5,265,162		223,752		5,488,914
Net income						19,905		19,905		4,810		24,715

Issuance of share-based compensation awards				1,077				1,077				1,077
Non-cash amortization of share-based compensation				3,976				3,976				3,976


Net settlement of restricted stock units for shares of common stock	30,181	—		—				—				—


Distributions to noncontrolling interests in consolidated property partnerships								—		(6,213)		(6,213)
Adjustment for noncontrolling interest in the Operating Partnership				(26)				(26)		26		—

Dividends declared per common share and common unit ($0.54 per share/unit)						(63,883)		(63,883)		(612)		(64,495)
Balance as of June 30, 2026	116,308,988	$	1,163	$	5,166,167	$	58,881	$	5,226,211	$	221,763	$	5,447,974


	Common Stock							Total Stock- holders’ Equity		Noncontrolling Interests		Total Equity
	Number of Shares	Common Stock		Additional Paid-in Capital		Retained Earnings
Balance as of December 31, 2024	118,046,674	$	1,181	$	5,209,653	$	171,212	$	5,382,046	$	226,823	$	5,608,869
Net income						39,008		39,008		4,673		43,681

Issuance of share-based compensation awards				1,476				1,476				1,476
Non-cash amortization of share-based compensation				5,176				5,176				5,176


Net settlement of restricted stock units for shares of common stock	222,085	2		(6,011)				(6,009)				(6,009)


Distributions to noncontrolling interests in consolidated property partnerships								—		(7,234)		(7,234)
Adjustment for noncontrolling interest in the Operating Partnership				121				121		(121)		—

Dividends declared per share of common stock and common unit ($0.54 per share/unit)						(65,353)		(65,353)		(621)		(65,974)
Balance as of March 31, 2025	118,268,759	1,183		5,210,415		144,867		5,356,465		223,520		5,579,985
Net income						68,449		68,449		11,119		79,568

Issuance of share-based compensation awards				477				477				477
Non-cash amortization of share-based compensation				5,670				5,670				5,670


Net settlement of restricted stock units for shares of common stock	25,569	—		(197)				(197)				(197)


Distributions to noncontrolling interests in consolidated property partnerships								—		(7,074)		(7,074)
Adjustment for noncontrolling interest in the Operating Partnership				(45)				(45)		45		—

Dividends declared per common share and common unit ($0.54 per share/unit)						(64,364)		(64,364)		(621)		(64,985)
Balance as of June 30, 2025	118,294,328	$	1,183	$	5,216,320	$	148,952	$	5,366,455	$	226,989	$	5,593,444

See accompanying notes to consolidated financial statements.

KILROY REALTY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)


	Six Months Ended June 30,
	2026		2025
Cash flows from operating activities:
Net income	$	10,042	$	123,249
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of real estate assets and leasing costs	185,016		171,978
Depreciation of non-real estate furniture, fixtures, and equipment	2,888		2,766
Revenues deemed uncollectible	533		820
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements	(6,533)		(7,458)
Straight-line rents, net	801		7,967
Non-cash amortization of net below-market rents	(1,292)		(1,691)
Non-cash amortization of deferred financing costs and debt discounts	4,299		2,397
Non-cash amortization of share-based compensation awards	7,948		8,509
Amortization of right of use ground lease assets	568		548
Gains on sales of depreciable operating properties	(23,525)		(16,554)
Impairment of real estate assets	61,778		—

Net change in other operating assets	(8,311)		(15,347)
Net change in other operating liabilities	(5,310)		3,483
Net cash provided by operating activities	228,902		280,667
Cash flows from investing activities:
Expenditures for development and redevelopment properties and undeveloped land	(126,924)		(81,743)
Expenditures for operating properties and other capital assets	(68,391)		(46,621)

Net proceeds received from dispositions of real estate assets	330,341		28,021
Investment in unconsolidated investment fund	(1,004)		—







Net cash provided by (used in) investing activities	134,022		(100,343)
Cash flows from financing activities:

Distributions to noncontrolling interests in consolidated property partnerships	(12,608)		(14,324)

Dividends and distributions paid to common stockholders and common unitholders	(127,936)		(128,855)
Taxes paid upon net share settlement of restricted share units	(6,970)		(6,206)
Principal payments and repayments of secured debt	(3,216)		(3,093)
Financing costs	(15,034)		(407)
Repurchase of common stock	(72,671)		—



Repayments of unsecured debt	(50,000)		—



Borrowings on unsecured revolving credit facility	40,000		—
Repayments on unsecured revolving credit facility	(40,000)		—


Net cash used in financing activities	(288,435)		(152,885)
Net increase in cash and cash equivalents	74,489		27,439
Cash and cash equivalents, beginning of period	179,316		165,690
Cash and cash equivalents, end of period	$	253,805	$	193,129

See accompanying notes to consolidated financial statements.

ITEM 1: FINANCIAL STATEMENTS (UNAUDITED) OF KILROY REALTY, L.P.

KILROY REALTY, L.P.

CONSOLIDATED BALANCE SHEETS

(Unaudited; in thousands, except unit data)


	June 30, 2026		December 31, 2025
ASSETS
Real estate assets:
Land	$	1,730,514	$	1,641,913
Buildings and improvements	9,051,287		8,505,486
Undeveloped land and construction in progress	1,602,626		2,387,742
Total real estate assets held for investment	12,384,427		12,535,141
Accumulated depreciation and amortization	(2,936,240)		(2,843,811)
Total real estate assets held for investment, net	9,448,187		9,691,330
Real estate and other assets held for sale, net	—		115,155
Cash and cash equivalents	253,805		179,316

Marketable securities	34,990		30,807
Current receivables (net of allowances of $327 and $244 as of June 30, 2026 and December 31, 2025 respectively)	12,184		12,765
Deferred rent receivables, net	423,968		424,794
Deferred leasing costs and acquisition-related intangible assets, net	264,033		278,232
Right of use ground lease assets, net	127,548		128,116
Prepaid expenses and other assets, net	67,233		54,561

Total assets	$	10,631,948	$	10,915,076
LIABILITIES AND CAPITAL
Liabilities:
Secured debt, net	$	590,095	$	592,685
Unsecured debt, net	3,947,034		3,996,774

Accounts payable, accrued expenses, and other liabilities	260,644		288,963
Ground lease liabilities	127,198		127,628
Accrued distributions	63,422		65,009
Deferred revenue and acquisition-related intangible liabilities, net	117,845		125,628
Rents received in advance and tenant security deposits	77,736		75,701
Liabilities related to real estate assets held for sale	—		4,945
Total liabilities	5,183,974		5,277,333
Commitments and contingencies (Note 10)
Capital:
Partner's Capital - Common units, 116,308,988 and 118,372,451 held by the general partner and 1,133,562 held by common limited partners issued and outstanding	5,277,146		5,472,718
Noncontrolling interests in consolidated property partnerships	170,828		165,025
Total capital	5,447,974		5,637,743
Total liabilities and capital	$	10,631,948	$	10,915,076

See accompanying notes to consolidated financial statements.

KILROY REALTY, L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except unit and per unit data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenues:
Rental income	$	268,321	$	285,071	$	533,651	$	551,315
Other property income	4,050		4,821		8,773		9,421
Total revenues	272,371		289,892		542,424		560,736
Expenses:
Property expenses	60,134		58,575		119,417		117,289
Real estate taxes	28,302		26,765		57,084		55,130
Ground leases	3,278		3,019		6,465		6,039
General and administrative expenses	18,933		18,475		39,632		35,376
Leasing costs	2,814		2,277		5,824		5,150
Depreciation and amortization	93,560		87,625		187,904		174,744
Total expenses	207,021		196,736		416,326		393,728
Other Income (Expenses):
Interest income	1,247		512		2,201		1,646
Interest expense	(41,634)		(30,844)		(80,145)		(61,992)


Other (expense) income	(248)		190		141		33
Gains on sales of depreciable operating properties	—		16,554		23,525		16,554
Impairment of real estate assets	—		—		(61,778)		—
Total other expenses	(40,635)		(13,588)		(116,056)		(43,759)
Net income	24,715		79,568		10,042		123,249
Net income attributable to noncontrolling interests in consolidated property partnerships	(4,617)		(10,456)		(9,396)		(14,754)




Net income available to common unitholders	$	20,098	$	69,112	$	646	$	108,495
Net income available to common unitholders per unit – basic	$	0.17	$	0.58	$	0.01	$	0.91
Net income available to common unitholders per unit – diluted	$	0.17	$	0.57	$	0.01	$	0.90
Weighted average common units outstanding – basic	117,425,967		119,435,902		118,094,310		119,390,782
Weighted average common units outstanding – diluted	118,196,158		119,833,911		118,832,666		119,824,509

See accompanying notes to consolidated financial statements.

KILROY REALTY, L.P.

CONSOLIDATED STATEMENTS OF CAPITAL

(Unaudited; in thousands, except unit and per unit data)


	Partners’ Capital			Noncontrolling Interests in Consolidated Property Partnerships
	Number of Common Units	Common Units				Total Capital
Balance as of December 31, 2025	119,506,013	$	5,472,718	$	165,025	$	5,637,743
Net (loss) income		(19,452)		4,779		(14,673)


Issuance of share-based compensation awards		4,416				4,416
Non-cash amortization of share-based compensation		5,811				5,811

Repurchase of common units	(2,357,739)	(72,671)				(72,671)
Net settlement of restricted stock units	264,095	(6,970)				(6,970)
Contributions from noncontrolling interests in consolidated property partnerships				9,000		9,000
Distributions to noncontrolling interests in consolidated property partnerships				(6,380)		(6,380)

Distributions declared per common unit ($0.54 per unit)		(67,362)				(67,362)
Balance as of March 31, 2026	117,412,369	5,316,490		172,424		5,488,914
Net income		20,098		4,617		24,715

Issuance of share-based compensation awards		1,077				1,077
Non-cash amortization of share-based compensation		3,976				3,976


Net settlement of restricted stock units	30,181	—				—

Distributions to noncontrolling interests in consolidated property partnerships				(6,213)		(6,213)

Distributions declared per common unit ($0.54 per unit)		(64,495)				(64,495)
Balance as of June 30, 2026	117,442,550	$	5,277,146	$	170,828	$	5,447,974


	Partners’ Capital			Noncontrolling Interests in Consolidated Property Partnerships		Total Capital
	Number of Common Units	Common Units
Balance as of December 31, 2024	119,197,248	$	5,434,518	$	174,351	$	5,608,869
Net income		39,383		4,298		43,681

Issuance of share-based compensation awards		1,476				1,476
Non-cash amortization of share-based compensation		5,176				5,176


Net settlement of restricted stock units	222,085	(6,009)				(6,009)

Distributions to noncontrolling interests in consolidated property partnerships				(7,234)		(7,234)

Distributions declared per common unit ($0.54 per unit)		(65,974)				(65,974)
Balance as of March 31, 2025	119,419,333	5,408,570		171,415		5,579,985
Net income		69,112		10,456		79,568

Issuance of share-based compensation awards		477				477
Non-cash amortization of share-based compensation		5,670				5,670


Net settlement of restricted stock units	25,569	(197)				(197)

Distributions to noncontrolling interests in consolidated property partnerships				(7,074)		(7,074)

Distributions declared per common unit ($0.54 per unit)		(64,985)				(64,985)
Balance as of June 30, 2025	119,444,902	$	5,418,647	$	174,797	$	5,593,444

See accompanying notes to consolidated financial statements.

KILROY REALTY, L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)


	Six Months Ended June 30,
	2026		2025
Cash flows from operating activities:
Net income	$	10,042	$	123,249
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of real estate assets and leasing costs	185,016		171,978
Depreciation of non-real estate furniture, fixtures, and equipment	2,888		2,766
Revenues deemed uncollectible	533		820
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements	(6,533)		(7,458)
Straight-line rents, net	801		7,967
Non-cash amortization of net below-market rents	(1,292)		(1,691)
Non-cash amortization of deferred financing costs and debt discounts	4,299		2,397
Non-cash amortization of share-based compensation awards	7,948		8,509
Amortization of right of use ground lease assets	568		548
Gains on sales of depreciable operating properties	(23,525)		(16,554)
Impairment of real estate assets	61,778		—

Net change in other operating assets	(8,311)		(15,347)
Net change in other operating liabilities	(5,310)		3,483
Net cash provided by operating activities	228,902		280,667
Cash flows from investing activities:
Expenditures for development and redevelopment properties and undeveloped land	(126,924)		(81,743)
Expenditures for operating properties and other capital assets	(68,391)		(46,621)

Net proceeds received from dispositions of real estate assets	330,341		28,021

Investment in unconsolidated investment fund	(1,004)		—






Net cash provided by (used in) investing activities	134,022		(100,343)
Cash flows from financing activities:

Distributions to noncontrolling interests in consolidated property partnerships	(12,608)		(14,324)

Distributions paid to common unitholders	(127,936)		(128,855)
Taxes paid upon net share settlement of restricted share units	(6,970)		(6,206)
Principal payments and repayments of secured debt	(3,216)		(3,093)

Financing costs	(15,034)		(407)
Repurchase of common units	(72,671)		—

Repayments of unsecured debt	(50,000)		—



Borrowings on unsecured revolving credit facility	40,000		—
Repayments on unsecured revolving credit facility	(40,000)		—


Net cash used in financing activities	(288,435)		(152,885)
Net increase in cash and cash equivalents	74,489		27,439
Cash and cash equivalents, beginning of period	179,316		165,690
Cash and cash equivalents, end of period	$	253,805	$	193,129

See accompanying notes to consolidated financial statements.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization, Ownership, and Basis of Presentation

Kilroy Realty Corporation (the “Company”) is a self-administered real estate investment trust (“REIT”) active in premier office, life science, and mixed-use property types in the United States. Our approach to modern business environments is designed to drive creativity and productivity for some of the world’s leading technology, media, life science, and professional services companies and we have been consistently recognized for our leadership in sustainability and building operations. We own, manage, develop, and acquire primarily premier office and life science properties in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin, which are markets we believe have long-term strategic advantages and strong barriers to entry. The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). The Company’s common stock is publicly traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “KRC.”

We own our interests in all of our real estate assets through Kilroy Realty, L.P. (the “Operating Partnership”) and conduct substantially all of our operations through the Operating Partnership. Unless stated otherwise or the context otherwise requires, the terms “Kilroy Realty Corporation” or the “Company,” “we,” “our,” and “us” refer to Kilroy Realty Corporation and its consolidated subsidiaries, including the Operating Partnership, and the term “Operating Partnership” refers to Kilroy Realty, L.P. and its consolidated subsidiaries. The descriptions of our business, employees, and properties apply to both the Company and the Operating Partnership.

Our stabilized portfolio of operating properties was comprised of the following at June 30, 2026:


	Number of Buildings	Rentable Square Feet	Number of Tenants	Percentage Occupied (1)
Stabilized Office and Life Science Properties (2)	123	17,128,056	445	77.0	%

______________________

(1)Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements.

(2)Includes ancillary retail space.


	Number of Properties	Number of Units	2026 Average Occupancy
Stabilized Residential Property	1	608	95.3	%

Our stabilized portfolio includes all properties except properties under development and redevelopment or in the tenant improvement phase, undeveloped land, and real estate assets held for sale, if any. Redevelopment properties are those for which we expect to spend significant costs to change their use, with the intention of improving economic return. Properties in the tenant improvement phase are ready for tenant modifications after reaching “cold shell condition,” which may require additional base building modifications. Projects in the tenant improvement phase are moved into our stabilized portfolio once the project reaches the earlier of 95% occupancy or one year from the date of the cessation of major base building construction activities. Capitalized development costs are transferred to relevant asset categories on the balance sheet as projects or phases of projects are placed in service.

Our stabilized portfolio also excludes our future development pipeline, which, as of June 30, 2026, was comprised of nine potential future development sites.

The consolidated financial statements of the Company include the consolidated financial position and results of operations of the Company, the Operating Partnership, and the following “Consolidated Property Partnerships”:

Consolidated Property Partnership

Property Address

Ownership Interest (1) (2)

100 First Street Member, LLC (“100 First LLC”)

100 1st Street, San Francisco, CA 94105

56%

303 Second Street Member, LLC (“303 Second LLC”)

303 2nd Street, San Francisco, CA 94107

56%

Redwood City Partners, LLC (“Redwood LLC”)

900 Jefferson Avenue, Redwood City, CA 94063

93%

900 Middlefield Road, Redwood City, CA 94063

1900 Broadway Partners, LLC (“1900 Broadway LLC”)

1900 Broadway, Redwood City, CA 94063

97%

________________________

(1)For 100 First LLC, 303 Second LLC, and Redwood LLC, reflects the Company’s ownership percentage at time of agreement. For Redwood LLC, actual percentage may vary depending on cash flows or promote structure. For 1900 Broadway LLC, reflects expected ownership percentage upon completion of construction.

(2)The remaining interests in all four property partnerships were owned by unrelated third parties.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of June 30, 2026, the Company owned an approximate 99.0% common general partnership interest in the Operating Partnership, and the remaining approximate 1.0% common limited partnership interest in the Operating Partnership was owned by non-affiliated investors. Both the general and limited common partnership interests in the Operating Partnership are denominated in common units. Generally, the number of common units held by the Company is equivalent to the number of outstanding shares of the Company’s common stock, and the rights of all the common units to quarterly distributions and payments in liquidation mirror those of the Company’s common stockholders. The common limited partners have certain redemption rights as provided in the Operating Partnership’s Seventh Amended and Restated Agreement of Limited Partnership, as amended (the “Partnership Agreement”).

With the exception of the Operating Partnership and our Consolidated Property Partnerships, all of our subsidiaries are wholly-owned. The consolidated financial statements of the Operating Partnership include the consolidated financial position and results of operations of the Operating Partnership, the Consolidated Property Partnerships, and all of our wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements.

The accompanying interim financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. The interim financial statements for the Company and the Operating Partnership should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2025.

Beginning in 2026, the Company combined certain line items in the Consolidated Statements of Equity. The Company determined that separate disclosure for certain line items was not meaningful to the users of the financial statements. The settlement of restricted stock units for shares of common stock is now presented net of shares withheld and payments made to settle tax obligations. Historical presentation has been revised to conform with the current period presentation. These presentation changes did not affect the total equity balance, net income, or earnings per share in any of the periods reported.

Variable Interest Entities

The Operating Partnership is a variable interest entity (“VIE”) that is consolidated by the Company as the primary beneficiary, as the Operating Partnership is a limited partnership in which the common limited partners do not have substantive kick-out or participating rights. At June 30, 2026, the consolidated financial statements of the Company included three VIEs in addition to the Operating Partnership: 100 First LLC, 303 Second LLC, and 1900 Broadway LLC. At December 31, 2025, the consolidated financial statements of the Company included two VIEs in addition to the Operating Partnership: 100 First LLC and 303 Second LLC. The Company and the Operating Partnership were determined to be the primary beneficiaries of these VIEs at June 30, 2026 and December 31, 2025, since we had the ability to control the activities that most significantly impact each of the VIEs’ economic performance. Revenues, income, and net assets generated by 100 First LLC, 303 Second LLC, and 1900 Broadway LLC may only be used to settle their contractual obligations, which primarily consist of operating expenses, capital expenditures, and required distributions. The following table summarizes the total assets, liabilities, and noncontrolling interests included on our consolidated balance sheets attributable to these VIEs:


	June 30, 2026		December 31, 2025
	($ in thousands)
Number of VIEs	3		2
Total assets (1)	$	441,918	$	380,940
Total liabilities	$	20,485	$	18,304
Total noncontrolling interests	$	166,294	$	160,299

____________________

(1)Includes $379.2 million and $319.4 million related to real estate assets held for investment, net, as of June 30, 2026 and December 31, 2025, respectively.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03 “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” The ASU is effective for annual periods beginning after December 15, 2026. The Company is currently evaluating whether the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements.

In May 2026, the FASB issued ASU 2026-02,“Environmental Credits and Environmental Credit Obligations (Topic 818).” The ASU establishes accounting and disclosure requirements for environmental credits and environmental credit obligations, including guidance on recognition, measurement, presentation, and disclosure. The amendments are effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements and related disclosures.

2. Dispositions

Operating Property Dispositions

The following table summarizes the operating properties sold during the six months ended June 30, 2026:


	Month of Disposition	Number of Buildings	Rentable Square Feet / Units	Sales Price (1)		Gain on Sale / (Impairment)
				(in millions)
Office
Kilroy Sabre Springs, I-15 Corridor, CA (2)	January	3	427,764	$	124.5	$	8.2
12348 High Bluff Drive (Del Mar Tech Center), Del Mar, CA	March	1	39,192	21.0		15.3
Total Office		4	466,956	$	145.5	$	23.5

Residential
Hollywood Residential Properties (3)	April		393 units	$	202.0	$	(61.8)
Total Residential			393 units	$	202.0	$	(61.8)

Total Dispositions				$	347.5	$	(38.3)

___________________________

(1)Represents gross sales price before broker 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. In Q1 2026, recognized an impairment charge of approximately $61.8 million to reduce the carrying amount of these properties to their current fair value, less estimated closing costs.

3. Prepaid Expenses and Other Assets, net

Prepaid expenses and other assets, net, consisted of the following:


	June 30, 2026		December 31, 2025
	(in thousands)
Furniture, fixtures, and other long-lived assets, net (1)	$	27,820	$	29,179
Prepaid expenses, net	16,131		11,000
Deferred financing costs, net (2)	19,080		9,150
Other assets	4,202		5,232
Total prepaid expenses and other assets, net	$	67,233	$	54,561

________________________

(1)Includes $33.2 million and $43.4 million of accumulated depreciation for furniture, fixtures, and other long-lived assets as of June 30, 2026 and December 31, 2025, respectively.

(2)Refer to Note 4 “Secured and Unsecured Debt of the Operating Partnership” for a discussion of the deferred financing costs for the unsecured revolving credit and term loan facilities.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

4. Secured and Unsecured Debt of the Operating Partnership

The Company generally guarantees all of the Operating Partnership’s unsecured debt obligations, including the unsecured revolving credit facility, the unsecured term loan facility, and all of the unsecured senior notes.

Unsecured Debt

Repayment of $50.0 million Unsecured Senior Notes Due 2026

In April 2026, the Company repaid the outstanding $50.0 million of 4.300% Private Placement Senior Notes Series A due July 2026, at par.

Unsecured Revolving Credit and Term Loan Facilities

In June 2026, the Operating Partnership amended and restated the terms of its unsecured revolving credit facility. The amendment and restatement expanded the borrowing capacity to $1.25 billion and extended the maturity date to July 31, 2030.

The following table summarizes the balance and terms of our unsecured revolving credit facility:


	Unsecured Revolving Credit Facility
	June 30, 2026			December 31, 2025
	($ in thousands)
Outstanding borrowings	$	—		$	—
Remaining borrowing capacity (1)	1,250,000			1,100,000
Total borrowing capacity (1)	$	1,250,000		$	1,100,000
Interest rate (2)	4.68		%	5.07		%
Annual facility fee (3)	0.25%
Unamortized deferred financing costs (3)	$	18,522		$	9,150
Maturity date (4)	July 31, 2030			July 31, 2028

________________________

(1)Remaining and total borrowing capacity are further reduced by the amount of our outstanding letters of credit, which total approximately $5.2 million as of June 30, 2026 and December 31, 2025. We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $450.0 million and $500.0 million as of June 30, 2026 and December 31, 2025, respectively, under an accordion feature pursuant to the terms of the unsecured revolving credit facility.

(2)Our unsecured revolving credit facility interest rate was calculated using the Secured Overnight Financing Rate (“SOFR”) and a margin of 1.000% based on our credit rating as of June 30, 2026, and using SOFR plus a SOFR adjustment of 0.10% (together “Adjusted SOFR”) and a margin of 1.100% based on our credit rating as of December 31, 2025.

(3)Our annual facility fee is paid on a quarterly basis and is calculated based on total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs in connection with the amendment and restatement of the unsecured revolving credit facility, which are included in Prepaid expenses and other assets, net, on our consolidated balance sheets, and will continue to be amortized through the amended maturity date.

(4)The maturity date may be extended by two six-month periods, at the Operating Partnership’s election.

The Operating Partnership intends to borrow under the unsecured revolving credit facility from time to time for general corporate purposes, including to finance development and redevelopment expenditures, to fund potential acquisitions, to repay long-term debt, and to supplement cash balances in response to market conditions.

In connection with amending and restating the revolving credit facility, the Operating Partnership amended and restated the unsecured term loan facility, expanding the borrowing capacity to $250.0 million, and extending the maturity date to July 31, 2031. Of the $250.0 million, $50.0 million represents additional delayed draw term loan commitments available to be drawn through June 11, 2027.

The following table summarizes the balance and terms of our Term Loan Facility:


	Term Loan Facility
	June 30, 2026			December 31, 2025
	($ in thousands)
Outstanding borrowings	$	200,000		$	200,000
Remaining borrowing capacity	50,000			—
Total borrowing capacity (1)	$	250,000		$	200,000
Interest rate (2)	4.79		%	5.02		%
Unamortized deferred financing costs (3)	$	2,832		$	277
Maturity date (4)	July 31, 2031			October 3, 2026

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

____________________

(1)As of June 30, 2026, we could elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $150.0 million under an accordion feature pursuant to the terms of the Term Loan Facility. As of December 31, 2025, we could elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $130.0 million under an accordion feature pursuant to the terms of the previous Term Loan Facility.

(2)Our Term Loan Facility interest rate was calculated using SOFR and a margin of 1.150% based on our credit rating as of June 30, 2026, and using Adjusted SOFR and a margin of 1.200% based on our credit rating as of December 31, 2025.

(3)We incurred debt origination and legal costs in connection with the amendment and restatement of the Term Loan Facility in June 2026, which will continue to be amortized through the maturity date of the Term Loan Facility. Approximately $0.6 million of these costs related to the delayed draw term loan commitments available are included in Prepaid expenses and other assets, net on our consolidated balance sheets, and will continue to be amortized through the amended maturity date.

(4)There are no extension options available under the terms of the amended and restated Term Loan Facility. As of December 31, 2025, one 12-month extension option was available.

Financial Covenants and Restrictions

The unsecured revolving credit facility, unsecured term loan facility, unsecured senior notes, including the private placement notes, and certain other secured debt arrangements contain covenants and restrictions requiring us to meet certain financial ratios and reporting requirements. Some of the more restrictive financial covenants include a maximum ratio of total debt to total asset value, a minimum fixed-charge coverage ratio, a maximum ratio of secured debt to total asset value, a minimum unsecured debt ratio, and a minimum unencumbered asset pool debt service coverage ratio. Noncompliance with one or more of the covenants and restrictions could result in the full principal balance of the associated debt becoming immediately due and payable. We were in compliance with all of our financial covenants as of June 30, 2026.

Debt Maturities

The following table summarizes the stated debt maturities and scheduled amortization payments for all outstanding debt as of June 30, 2026:


Year	(in thousands)
Remaining 2026 (1)	$	348,102
2027	249,125
2028	400,000
2029	475,000
2030	500,000
2031	550,000
Thereafter	2,050,000
Total aggregate principal value	$	4,572,227
Less: unamortized net discounts and deferred financing costs (2)	(35,098)
Total debt, net	$	4,537,129

________________________

(1)In July 2026, repaid the outstanding $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026, at par. Refer to Note 16 “Subsequent Events” for additional information.

(2)Includes $24.8 million of unamortized deferred financing costs for the unsecured term loan facility, unsecured senior notes, and secured debt, and $10.3 million of unamortized discounts for the unsecured senior notes. Excludes unamortized deferred financing costs on the unsecured revolving credit facility and a portion of unamortized deferred financing costs related to the delayed term loan commitment, which are included in Prepaid expenses and other assets, net, on our consolidated balance sheets.

Capitalized Interest

The following table sets forth our gross interest expense and capitalized interest. Capitalized interest was recorded as a cost of development and redevelopment and increased the carrying value of undeveloped land and construction in progress:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Gross interest expense	$	53,266	$	52,177	$	105,768	$	103,873
Capitalized interest	(11,632)		(21,333)		(25,623)		(41,881)
Interest expense	$	41,634	$	30,844	$	80,145	$	61,992

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

5. Stockholders’ Equity of the Company

At-The-Market Stock Offering Program

Under our at-the-market (“ATM”) stock offering program (the “2024 ATM Program”), which commenced in March 2024, we may offer and sell shares of the Company’s common stock having an aggregate gross sales price of up to $500.0 million from time to time in “at-the-market” offerings. In connection with the 2024 ATM Program, the Company may also, at its discretion, enter into forward equity sale agreements. The use of forward equity sale agreements allows the Company to fix a share price on the sale of shares of our common stock at the time an agreement is executed but defer settling the forward equity sale agreements and receiving the proceeds from the sale of shares until a later date. The Company did not have any outstanding forward equity sale agreements to be settled at June 30, 2026. Since commencement of the 2024 ATM Program, we have not completed any sales of common stock.

Share Repurchase Program

Under our current share repurchase program, which commenced in February 2024 (the “Share Repurchase Program”), we are authorized to repurchase shares of the Company’s common stock having an aggregate gross purchase price of up to $500.0 million. Under the Share Repurchase Program, repurchases may be made from time to time using a variety of methods, which may include open market purchases and privately negotiated transactions. The specific timing, price, and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The Share Repurchase Program does not have a termination date and repurchases may be discontinued at any time. We did not repurchase any shares of common stock during the three months ended June 30, 2026. During the six months ended June 30, 2026, we repurchased 2,357,739 shares of common stock at a weighted average price of $30.80 per common share for an aggregate purchase price of $72.7 million. The remaining repurchase capacity as of June 30, 2026 was $427.3 million.

6. Noncontrolling Interests on the Company’s Consolidated Financial Statements

Common Units of the Operating Partnership

The Company owned an approximate 99.0% and 99.1% common general partnership interest in the Operating Partnership as of June 30, 2026 and December 31, 2025, respectively. The remaining approximate 1.0% and 0.9% common limited partnership interest as of June 30, 2026 and December 31, 2025, respectively, was owned by non-affiliated investors in the form of noncontrolling common units. There were 1,133,562 common units outstanding held by these investors as of June 30, 2026 and December 31, 2025.

The noncontrolling common units may be redeemed by unitholders for cash. Except under certain circumstances, we, at our option, may satisfy the cash redemption obligation with shares of the Company’s common stock on a one-for-one basis. If satisfied in cash, the value for each noncontrolling common unit upon redemption is the amount equal to the average of the closing quoted price per share of the Company’s common stock, par value $0.01 per share, as reported on the NYSE for the ten trading days immediately preceding the applicable redemption date. The aggregate value upon redemption of the then-outstanding noncontrolling common units was $42.3 million and $43.2 million as of June 30, 2026 and December 31, 2025, respectively. This redemption value does not necessarily represent the amount that would be distributed with respect to each noncontrolling common unit in the event of our termination or liquidation. In the event of our termination or liquidation, it is generally expected that each common unit would be entitled to a liquidating distribution equal to the liquidating distribution payable in respect of each share of the Company’s common stock.

Noncontrolling Interest in Consolidated Property Partnerships

Refer to Note 7 “Noncontrolling Interests on the Operating Partnership’s Consolidated Financial Statements” for additional information regarding these Consolidated Property Partnerships.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

7. Noncontrolling Interests on the Operating Partnership’s Consolidated Financial Statements

Consolidated Property Partnerships

On February 20, 2026, the Company entered into an agreement with an unaffiliated third party and formed a new consolidated subsidiary. In connection with this formation, we acquired an approximately 1.1-acre land parcel for the future development project at 1900 Broadway in Redwood City, CA for $36.0 million, of which our joint venture partner contributed $9.0 million. We expect an estimated ownership percentage of 97.4% upon completion of development activities. The related assets, liabilities, and noncontrolling interest recognized in connection with this transaction are included in the consolidated financial statements as of the date of formation. The noncontrolling equity interest was $9.0 million as of June 30, 2026.

8. Share-Based Compensation

Share-Based Compensation Cost Recorded During the Period

The total compensation cost for all share-based compensation programs was $4.0 million and $5.7 million for the three months ended June 30, 2026 and 2025, respectively, and $9.8 million and $10.8 million for the six months ended June 30, 2026 and 2025, respectively. Of the total share-based compensation costs, $0.9 million and $1.1 million were capitalized as part of real estate assets for the three months ended June 30, 2026 and 2025, respectively, and $1.8 million and $2.3 million were capitalized as part of real estate assets for the six months ended June 30, 2026 and 2025, respectively.

9. Rental Income and Future Minimum Rent

The table below sets forth the allocation of rental income between fixed and variable lease payments and net collectability considerations:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Fixed lease payments	$	221,429	$	236,910	$	440,823	$	457,925
Variable lease payments	47,142		48,086		93,816		94,507
Impact from tenant creditworthiness considerations (1)	(250)		75		(988)		(1,117)
Total rental income	$	268,321	$	285,071	$	533,651	$	551,315

_____________________

(1)Represents reserve adjustments to rental income related to our assessment of the collectability of amounts due under leases with our tenants, including recognition of deferred rent balances associated with tenants moved to / restored from a cash basis of revenue recognition and allowances for uncollectible receivables.

We have operating leases with tenants that expire at various dates through 2050 and may be subject to scheduled fixed increases and future renewal options. Leases may also provide for reimbursements of certain property-related operating expenses. Future contractual minimum rent under operating leases, which includes amounts contractually due from leases that are on a cash basis of reporting due to tenant creditworthiness considerations, as of June 30, 2026, for future periods, is summarized as follows:


Year Ending	(in thousands)
Remaining 2026	$	390,922
2027	792,853
2028	768,948
2029	690,005
2030	612,807
2031	502,071
Thereafter	1,644,007
Total (1)	$	5,401,613

_____________________

(1)Excludes residential leases and leases with an initial term of less than one year.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

10. Commitments and Contingencies

Development and Construction Commitments

As of June 30, 2026, we had commitments ranging from approximately $500.0 million to $520.0 million, excluding our ground lease commitments, for contracts and executed leases directly related to our operating, stabilized development, and future development properties.

Environmental Matters

We had the following accrued environmental remediation liabilities in connection with certain of our future development projects:


	June 30, 2026		December 31, 2025
	(in thousands)
Environmental liabilities	$	72,234	$	70,030

Legal Matters

We and our properties are subject to routine litigation incidental to our business. As of June 30, 2026, we are not a defendant in, and our properties are not subject to, any legal proceedings that we believe, if determined adversely to us, would have a material adverse effect upon our financial condition, results of operations or cash flows.

11. Fair Value Measurements and Disclosures

Assets Measured at Fair Value on a Recurring Basis

The only assets we record at fair value on a recurring basis in our consolidated financial statements are the marketable securities related to our Deferred Compensation Plan. The following table sets forth the fair value of our Deferred Compensation Plan:


	Fair Value (Level 1) (1)
	June 30, 2026		December 31, 2025
Description	(in thousands)
Deferred Compensation Plan assets (2)	$	34,990	$	30,807

________________________

(1) Based on quoted prices in active markets for identical securities.

(2) The Deferred Compensation Plan assets are held in a limited rabbi trust.

Financial Instruments Disclosed at Fair Value

The following table sets forth the carrying value and the fair value of our other financial instruments:


	June 30, 2026				December 31, 2025
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities	(in thousands)



Secured debt, net	$	590,095	$	580,534	$	592,685	$	587,244
Unsecured debt, net	$	3,947,034	$	3,743,098	$	3,996,774	$	3,834,485

Fair value is calculated using Level 2 inputs, which are based on model-derived valuations in which significant inputs and value drivers are observable in active markets.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

12. Net Income Available to Common Stockholders Per Share of the Company

The following table reconciles the numerator and denominator in computing the Company’s basic and diluted per-share computations for net income available to common stockholders:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands, except share and per share amounts)
Numerator:
Net income available to common stockholders	$	19,905	$	68,449	$	638	$	107,457

Allocation to participating securities (1)	(90)		(228)		(28)		(440)
Numerator for basic and diluted net income available to common stockholders	$	19,815	$	68,221	$	610	$	107,017
Denominator:
Basic weighted average vested shares outstanding	116,292,405		118,285,328		116,960,748		118,240,208
Effect of dilutive securities	770,191		398,009		738,356		433,727
Diluted weighted average vested shares and common stock equivalents outstanding	117,062,596		118,683,337		117,699,104		118,673,935
Basic earnings per share:
Net income available to common stockholders per share	$	0.17	$	0.58	$	0.01	$	0.91
Diluted earnings per share:
Net income available to common stockholders per share	$	0.17	$	0.57	$	0.01	$	0.90

________________________

(1)Participating securities include certain vested time-based RSUs and performance-based RSUs.

Share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities. The impact of potentially dilutive common shares, including RSUs, is considered in our diluted earnings per share calculation for the three and six months ended June 30, 2026 and 2025. Certain RSUs are not included in dilutive securities for the three and six months ended June 30, 2026 and 2025 as they were antidilutive.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

13. Net Income Available to Common Unitholders Per Unit of the Operating Partnership

The following table reconciles the numerator and denominator in computing the Operating Partnership’s basic and diluted per-unit computations for net income available to common unitholders:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands, except unit and per unit amounts)
Numerator:
Net income available to common unitholders	$	20,098	$	69,112	$	646	$	108,495

Allocation to participating securities (1)	(90)		(228)		(28)		(440)
Numerator for basic and diluted net income available to common unitholders	$	20,008	$	68,884	$	618	$	108,055
Denominator:
Basic weighted average vested units outstanding	117,425,967		119,435,902		118,094,310		119,390,782
Effect of dilutive securities	770,191		398,009		738,356		433,727
Diluted weighted average vested units and common unit equivalents outstanding	118,196,158		119,833,911		118,832,666		119,824,509
Basic earnings per unit:
Net income available to common unitholders per unit	$	0.17	$	0.58	$	0.01	$	0.91
Diluted earnings per unit:
Net income available to common unitholders per unit	$	0.17	$	0.57	$	0.01	$	0.90

________________________

(1)Participating securities include certain vested time-based RSUs and performance-based RSUs.

Share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities. The impact of potentially dilutive common units, including RSUs, is considered in our diluted earnings per share calculation for the three and six months ended June 30, 2026 and 2025. Certain RSUs are not included in dilutive securities for the three and six months ended June 30, 2026 and 2025 as they were antidilutive.

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

14. Supplemental Cash Flows Information of the Company and the Operating Partnership

Supplemental cash flows information of the Company is as follows:


	Six Months Ended June 30,
	2026		2025
	(in thousands)
SUPPLEMENTAL CASH FLOWS INFORMATION:
Cash paid for interest, net of capitalized interest of $23,932 and $39,053, respectively	$	81,217	$	58,692
Cash paid for amounts included in the measurement of ground lease liabilities	$	3,430	$	4,669
NON-CASH INVESTING TRANSACTIONS:
Accrual for expenditures for operating properties and development and redevelopment properties	$	34,349	$	32,027
Tenant improvements funded directly by tenants	$	2,395	$	1,652




Contribution of land by noncontrolling interest to consolidated property partnership	$	9,000	$	—



NON-CASH FINANCING TRANSACTIONS:
Issuance of RSU dividend equivalents	$	5,493	$	1,953
Accrual of dividends and distributions payable to common stockholders and common unitholders	$	63,422	$	64,985

Supplemental cash flows information of the Operating Partnership is as follows:


	Six Months Ended June 30,
	2026		2025
	(in thousands)
SUPPLEMENTAL CASH FLOWS INFORMATION:
Cash paid for interest, net of capitalized interest of $23,932 and $39,053, respectively	$	81,217	$	58,692
Cash paid for amounts included in the measurement of ground lease liabilities	$	3,430	$	4,669
NON-CASH INVESTING TRANSACTIONS:
Accrual for expenditures for operating properties and development and redevelopment properties	$	34,349	$	32,027
Tenant improvements funded directly by tenants	$	2,395	$	1,652




Contribution of land by noncontrolling interest to consolidated property partnership	$	9,000	$	—



NON-CASH FINANCING TRANSACTIONS:
Issuance of RSU dividend equivalents	$	5,493	$	1,953
Accrual of distributions payable to common unitholders	$	63,422	$	64,985

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

15. Segments

Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”). The CODM decides how resources are allocated and assesses performance on a recurring basis, at least quarterly. Our CODM is our Chief Executive Officer (“CEO”), who evaluates the operating performance and financial results of our consolidated portfolio based on Net Income through monthly operations meetings.

We conduct our business on a consolidated basis in one operating segment and therefore have one reportable segment. Asset information by segment is not reported because the Company does not use this measure to assess performance.

Our reportable segment derives its revenues primarily from rental revenue and related property income through the leasing of commercial real estate space to tenants. We recognize revenue from base rent (fixed lease payments), additional rent (variable lease payments, which consist of amounts due from tenants for common area maintenance, real estate taxes, percentage rent, and other recoverable costs), parking, and other lease-related revenue. Significant segment expenses include property expenses, real estate taxes, general and administrative expenses, depreciation and amortization, and interest expense. Management reviews these expenses in assessing operating performance and making resource allocation decisions.

The following table presents Net Income:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Revenues:
Rental income	$	268,321	$	285,071	$	533,651	$	551,315
Other property income	4,050		4,821		8,773		9,421
Total revenues	272,371		289,892		542,424		560,736
Expenses:
Property expenses	60,134		58,575		119,417		117,289
Real estate taxes	28,302		26,765		57,084		55,130
Ground leases	3,278		3,019		6,465		6,039
General and administrative expenses	18,933		18,475		39,632		35,376
Leasing costs	2,814		2,277		5,824		5,150
Depreciation and amortization	93,560		87,625		187,904		174,744
Total expenses	207,021		196,736		416,326		393,728
Other Income (Expenses):
Interest income	1,247		512		2,201		1,646
Interest expense	(41,634)		(30,844)		(80,145)		(61,992)
Other (expense) income	(248)		190		141		33
Gains on sales of depreciable operating properties	—		16,554		23,525		16,554
Impairment of real estate assets	—		—		(61,778)		—



Total other expenses	(40,635)		(13,588)		(116,056)		(43,759)
Net income	$	24,715	$	79,568	$	10,042	$	123,249

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

16. Subsequent Events

On July 20, 2026, the Operating Partnership repaid the outstanding $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026, at par.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion relates to our consolidated financial statements and should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report. The results of operations discussion is combined for the Company and the Operating Partnership because there are no material differences in the results of operations between the two reporting entities.

Forward-Looking Statements

Statements contained in this “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” that are not historical facts may be forward-looking statements. Forward-looking statements include, among other things, statements or information concerning our plans, objectives, capital resources, portfolio performance, results of operations, projected future occupancy and rental rates, lease expirations, debt maturities, potential investments, strategies such as capital recycling, development and redevelopment activity, projected construction costs, projected construction commencement and completion dates, projected square footage of space that could be constructed on undeveloped land that we own, projected rentable square footage of or number of units in properties under construction or in the development pipeline, anticipated proceeds from capital recycling activity or other dispositions and anticipated dates of those activities or dispositions, projected increases in the value of properties, dispositions, future executive incentive compensation, pending, potential or proposed acquisitions, plans to grow our Net Operating Income and FFO, our ability to re-lease properties at or above current market rates, anticipated market conditions and demographics and other forward-looking financial data, as well as the discussion in “—Factors That May Influence Future Results of Operations,” “—Liquidity and Capital Resources of the Company,” and “—Liquidity and Capital Resources of the Operating Partnership.” Forward-looking statements can be identified by the use of words such as “believes,” “expects,” “projects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates”, or “anticipates” and the negative of these words and phrases and similar expressions that do not relate to historical matters. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results, and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including 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. The factors included in this report 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 the

Company’s and the Operating Partnership’s business and financial performance, see the discussion below, as well as in “Part I, Item 1A. Risk Factors” and “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s and the Operating Partnership’s annual report on Form 10-K for the year ended December 31, 2025, and their respective other filings with the SEC. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement 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.

Overview and Background

We are a self-administered REIT active in premier office, life science, and mixed-use property types in the United States. We own, manage, develop, and acquire primarily premier office and life science properties in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin, which are markets we believe have long-term strategic advantages and strong barriers to entry. We own our interests in all of our real estate assets and conduct substantially all of our operations through the Operating Partnership, of which we owned an approximate 99.0% and 99.1% common general partnership interest as of June 30, 2026 and December 31, 2025, respectively. All of our properties and development and redevelopment projects are 100% owned, excluding four office properties and one future development project owned by the Consolidated Property Partnerships. As of June 30, 2026, all of our properties are held in fee except for the fourteen office buildings that are held subject to long-term ground leases.

Stabilized Portfolio Information

As of June 30, 2026, our stabilized portfolio was comprised of 123 office and life science properties encompassing an aggregate of approximately 17.1 million rentable square feet. This portfolio includes all properties except properties under development and redevelopment or in the tenant improvement phase, undeveloped land, and real estate assets held for sale, if any. Our stabilized portfolio also excludes our future development pipeline, which, as of June 30, 2026, was comprised of nine potential development sites.

The following table reconciles the changes in the rentable square feet in our stabilized portfolio of operating properties from December 31, 2025 to June 30, 2026, inclusive of four properties owned by the Consolidated Property Partnerships and excluding our residential portfolio:


	Number of Buildings	Rentable Square Feet
Total as of December 31, 2025	121	16,292,164

Completed development properties placed in-service	3	871,738
Dispositions (1)	(1)	(39,192)
Remeasurements (2)	—	3,346
Total as of June 30, 2026	123	17,128,056

________________________

(1)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.

(2)Represents a recalculation of a property's rentable square footage using updated industry measurement standards.

Occupancy Information

The following table sets forth certain information regarding our stabilized portfolio, excluding our residential portfolio, as of the end of the period presented:


	June 30, 2026				March 31, 2026				December 31, 2025
Region	Number of Buildings	Rentable Square Feet	Occupancy		Number of Buildings	Rentable Square Feet	Occupancy		Number of Buildings	Rentable Square Feet	Occupancy

San Francisco Bay Area	33	6,436,709	75.3	%	33	6,436,709	75.2	%	30	5,564,971	86.2	%
Los Angeles	52	4,246,048	72.5	%	52	4,242,385	74.8	%	52	4,242,386	75.1	%
Seattle	10	2,997,307	78.9	%	10	2,997,307	79.3	%	10	2,997,623	80.0	%
San Diego	27	2,689,017	84.1	%	27	2,689,017	84.6	%	28	2,728,209	83.7	%
Austin	1	758,975	84.0	%	1	758,975	83.2	%	1	758,975	82.2	%
Total	123	17,128,056	77.0	%	123	17,124,393	77.6	%	121	16,292,164	81.6	%

The following table sets forth the average occupancy of certain property groups within our stabilized portfolio for the periods presented:


	Average Occupancy (1)
	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Stabilized Office & Life Science Portfolio (2)	77.6	%	80.8	%	77.5	%	81.1	%
Same Property Portfolio (3)	82.0	%	81.0	%	82.0	%	81.4	%
Residential Portfolio (4)	95.6	%	93.8	%	95.3	%	94.5	%

________________________

(1)Occupancy percentages reported are calculated as the average of the daily ending occupancy percentages for the period presented. Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements.

(2) Kilroy Oyster Point Phase 2 (“KOP 2”) stabilized during the three and six months ended June 30, 2026. Excluding KOP 2, the average stabilized portfolio occupancy was 81.4% for the three and six months ended June 30, 2026.

(3) 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.

(4) Our 2026 residential portfolio consists of 608 residential units at our One Paseo mixed-use property in San Diego, California. Our 2025 residential portfolio consists of 200 residential units at our Columbia Square Living property and 193 residential units at our Jardine property in Hollywood California, and 608 residential units at our One Paseo mixed-use property in San Diego, California.

Significant Tenants

Refer to our 2025 Annual Report on Form 10-K for information about our 20 largest tenants. There have been no significant changes to these 20 largest tenants outside of the ordinary course of business during the six months ended June 30, 2026.

Factors That May Influence Future Results of Operations

Leasing

Leasing Activity and Changes in Rental Rates

The amount of rental income generated by our properties depends principally on our ability to maintain current occupancy rates and to lease currently available space, including space at newly developed or redeveloped properties and newly acquired properties. The amount of rental income we generate also depends on our ability to maintain or increase rental rates at our properties. Negative trends in one or more of these factors could adversely affect our rental income in future periods. The following tables set forth certain information regarding leasing activity during the three and six months ended June 30, 2026:

Leases Executed (1)


Quarter to Date	Number of Leases		Rentable Square Feet			Weighted Average Lease Term (in months)	TI / LC per Sq. Ft. (2)		TI / LC per Sq. Ft. / Year (2)
	New	Renewal	New	Renewal	Total
2nd Gen Leasing (3)	15	13	119,082	134,530	253,612	66	$	67.00	$	10.14

1st Gen / Major Repositioning / In-Process Development & Redevelopment Leasing (4)	4	—	81,896	—	81,896	79	$	272.73	$	39.69
Total	19	13	200,978	134,530	335,508

Year to Date	Number of Leases		Rentable Square Feet			Weighted Average Lease Term (in months)	TI / LC per Sq. Ft. (2)		TI / LC per Sq. Ft. / Year (2)
	New	Renewal	New	Renewal	Total
2nd Gen Leasing (3)	38	24	364,444	179,006	543,450	59	$	58.50	$	10.70

1st Gen / Major Repositioning / In-Process Development & Redevelopment Leasing (4)	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 (5)	Changes in Cash Rents (6)	Changes in GAAP Rents (5)		Changes in Cash Rents (6)
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 (7)	27.9	%	24.8	%
Retention Rate, including subtenants (8)	27.9	%	30.0	%

________________________

(1)Includes 100% of the 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)Represents leases executed at properties in the stabilized portfolio during the period, excluding short-term leases. Excludes leases executed at space that was vacant when the property was acquired and space not previously leased at recently completed development projects that have been added to the stabilized portfolio (“1st Gen”) and space in the stabilized portfolio for which we are incurring significant non-recurring capital expenditures to reposition and is expected to result in additional revenue generated when re-leased (“Major Repositioning”). Tenant improvement and leasing commission capital expenditures for projects classified as Major Repositioning are captured in 2nd Gen Capital Expenditures.

(4)Represents leases executed at projects in our development and redevelopment portfolios, as well as 1st Gen and Major Repositioning leasing.

(5)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.

(6)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.

(7)Calculated as the percentage of square footage renewed by existing tenants divided by the square footage of space renewed by existing tenants and lease expirations during the period. Excludes square footage of short-term leases.

(8)Represents the retention rate, inclusive of leases with subtenants where the Company does not expect to experience downtime in occupancy between leases.

Lease Expirations (1)(2)

The following tables set forth certain information regarding our scheduled lease expirations for our stabilized portfolio, excluding our residential properties, by year and by region for the remainder of 2026 and in 2027:


Year of Lease Expiration	Number of Expiring Leases	Total Square Feet	% of Total Leased Sq. Ft.		Annualized Base Rent (in thousands) (3)		% of Total Annualized Base Rent (3)		Annualized Base Rent per Sq. Ft. (3)

Month-to-Month	64	30,009	N/A		N/A		N/A		N/A

Remainder of 2026	32	337,878	2.6	%	$	15,722	2.1	%	$	46.53
2027	66	1,024,406	7.9	%	38,087		5.0	%	37.18
2028	78	1,324,618	10.2	%	80,878		10.6	%	61.06
2029	70	1,515,606	11.6	%	79,803		10.5	%	52.65
2030	70	1,738,849	13.3	%	104,902		13.8	%	60.33
Thereafter	190	7,096,983	54.4	%	440,486		58.0	%	62.07
Total	506	13,038,340	100.0	%	$	759,878	100.0	%	$	58.28


Year	Region	Number of Expiring Leases	Total Square Feet	% of Total Leased Sq. Ft.		Annualized Base Rent (in thousands) (3)		% of Total Annualized Base Rent (3)		Annualized Base Rent per Sq. Ft. (3)

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

________________________

(1)Represents all in-place leases as of June 30, 2026, excluding intercompany leases.

(2)Includes 100% of annualized base rent of the Consolidated Property Partnerships.

(3)Represents annualized monthly contractual base rents from existing tenants in occupancy, including the impact of straight-lined 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.

Adjusting for leases that have been backfilled or re-leased to a subtenant as of June 30, 2026 but not yet commenced, the remaining 2026, 2027, and 2028 expirations would be 248,421, 1,015,123, and 1,297,768 square feet, respectively.

Our rental rates and occupancy are impacted by general economic conditions, including the pace of regional economic growth and capital availability. Therefore, we cannot guarantee that leases will be renewed or that available space will be re-leased at rental rates equal to or above current rates.

Capital Recycling Program

Our capital recycling program plays a central role in reshaping our portfolio for long-term performance and cash flow durability. By disposing of select non-core or non-strategic assets, often in markets where growth prospects have moderated, as well as undeveloped land in our portfolio, we can redeploy capital into opportunities that can realize higher returns. Refer to “Liquidity and Capital Resources of the Operating Partnership” for further discussion of our capital recycling program.

Development and Redevelopment Programs

Stabilized Development Project

During the first quarter of the six months ended June 30, 2026, we completed and added the following development project to the stabilized development portfolio:

•Kilroy Oyster Point (Phase 2), South San Francisco, California. In June 2021, we commenced construction on Phase 2 of this 39-acre life science campus situated on the waterfront in South San Francisco and progressed the property to the tenant improvement phase during the first quarter of 2025. The second phase encompasses 871,738 square feet of office and life science space across three buildings with a total estimated investment of $1.2 billion. We added the property to the stabilized portfolio upon reaching one year since substantial completion. The project is 7% occupied and 49% leased.

Future Development Pipeline

As of June 30, 2026, our future development pipeline included the following projects:

Future Development Pipeline

Location

Approx. Developable Square Feet / Residential Units (1)

Total Costs (2)

(in millions)

San Francisco Bay Area

Flower Mart

San Francisco CBD

2,300,000

722.7

Kilroy Oyster Point - Phases 3 and 4

South San Francisco

875,000 - 1,000,000

258.9

1900 Broadway (3)

Other Peninsula

251,000

70.6

Los Angeles

1633 26th Street (4)

West Los Angeles

190,000

16.5

Seattle

SIXO

Lake Union / Denny Regrade

925,000 and 650 units

201.8

San Diego

Santa Fe Summit (4)

56 Corridor

600,000 - 650,000

117.8

2045 Pacific Highway

Little Italy / Point Loma

275,000

61.1

Kilroy East Village

East Village

1,100 units

68.0

Austin

Stadium Tower

Stadium District / Domain

493,000

75.6

TOTAL:

1,593.0

________________________

(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, including accrued liabilities, 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. Both development sites are anticipated to close upon receipt of residential entitlements and permits, which is expected to occur beginning in phases in late 2026.

Fluctuations in our development activities, including a slowdown in development activities, could cause fluctuations in the average development asset balances qualifying for interest and other carrying costs and internal cost capitalization under GAAP in future periods, resulting in higher interest and other expenses. The following table sets forth our capitalized interest and other capitalized costs for our development and redevelopment properties and capital improvement projects in the stabilized portfolio:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Capitalized Interest
Average Qualifying Costs (1)	$	1,006,599	$	1,914,978	$	1,130,888	$	1,890,610
Capitalized Interest	$	11,632	$	21,333	$	25,623	$	41,881

Other Capitalized Costs
Capitalized Internal Overhead Costs (2)	$	3,852	$	3,807	$	7,829	$	8,441
Other Capitalized Development Costs (3)	$	1,554	$	5,505	$	4,744	$	10,479

________________________

(1)The average qualifying costs for the six months ended June 30, 2026 includes costs incurred for KOP 2 prior to stabilization in Q1 2026.

(2)Primarily represents compensation costs capitalized to construction and development and redevelopment projects.

(3)Represents incidental property operating and carry costs capitalized to development and redevelopment projects.

Inflation

The majority of the Company’s leases require tenants to reimburse the Company for the tenant’s proportionate share of, and/or increases in, real estate taxes and certain operating costs, which reduce the Company’s exposure to increases in operating costs resulting from inflation. The Company’s exposure to inflationary impacts is sensitive to fluctuations in the occupancy levels at its properties.

Results of Operations

Net Operating Income

Management internally evaluates the operating performance and financial results of our stabilized portfolio based on Net Operating Income. We define “Net Operating Income” as revenues less lease termination fees and consolidated operating expenses (property expenses, real estate taxes, and ground leases).

Net Operating Income is considered by management to be an important and appropriate supplemental performance measure to net income because we believe it helps both investors and management to understand the core operations of our properties. Net Operating Income is an unlevered operating performance metric of our properties and allows for a useful comparison of the operating performance of individual assets or groups of assets. Because the Company’s Net Operating Income 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. In addition, Net Operating Income is considered by many in the real estate industry to be a useful starting point for determining the value of a real estate asset or group of assets. Other real estate companies may use different methodologies for calculating Net Operating Income and, accordingly, our presentation of Net Operating Income may not be comparable to other real estate companies. Because of the exclusion of the items shown in the reconciliation below, Net Operating Income should only be used as a supplemental measure of our financial performance and not as an alternative to GAAP net income.

Management further evaluates Net Operating Income by evaluating the performance from the following property groups:

•Same Property Portfolio – includes the consolidated results of all of the properties that were owned and included in our stabilized portfolio for two comparable reporting periods, i.e., owned and included in our stabilized portfolio as of January 1, 2025 and still owned and included in the stabilized portfolio as of June 30, 2026, including our residential property in San Diego, California;

•Re/Development Properties – includes the results generated by certain of our in-process development and redevelopment projects, expenses for certain of our future development projects, and the results generated by the two stabilized redevelopment properties that were added to the stabilized portfolio in the third quarter of 2025 and the one property added to the stabilized portfolio in the first quarter of 2026;

•Acquisition Properties – includes the results, from the date of acquisition through the periods presented, of the following:

◦One property acquired in the third quarter of 2025; and

◦One property, comprised of four buildings, acquired in the fourth quarter of 2025; and

•Disposition Properties – includes the results of the following:

◦One property disposed of in the second quarter of 2025;

◦One property, comprised of four buildings, disposed of in the third quarter of 2025;

◦One property disposed of in the fourth quarter of 2025;

◦Two properties, comprised of four buildings, disposed of in the first quarter of 2026; and

◦Two residential properties, totaling 393 residential units, disposed of in the second quarter of 2026.

The following table sets forth certain information regarding the property groups within our stabilized portfolio as of June 30, 2026:


Group	# of Buildings	Rentable Square Feet
Same Property Portfolio	113	15,617,298
Re/Development Properties (1)	5	972,226
Acquisition Properties	5	538,532
Total Stabilized Portfolio (2)	123	17,128,056

________________________

(1)Excludes development projects in the tenant improvement phase, our in-process development projects, and future development projects.

(2)Excludes our residential property, measured in units.

Comparison of the Three Months Ended June 30, 2026 to the Three Months Ended June 30, 2025

The following table summarizes our Net Operating Income for our total portfolio:


	Three Months Ended June 30,				Dollar Change		Percentage Change
	2026		2025
	($ in thousands)
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined:
Net Income Available to Common Stockholders	$	19,905	$	68,449	$	(48,544)	(70.9)	%



Net income attributable to noncontrolling common units of the Operating Partnership	193		663		(470)		(70.9)	%
Net income attributable to noncontrolling interests in consolidated property partnerships	4,617		10,456		(5,839)		(55.8)	%
Net income	$	24,715	$	79,568	$	(54,853)	(68.9)	%
Lease termination fees	(364)		(10,754)		10,390		(96.6)	%
General and administrative expenses	18,933		18,475		458		2.5	%
Leasing costs	2,814		2,277		537		23.6	%
Depreciation and amortization	93,560		87,625		5,935		6.8	%
Interest income	(1,247)		(512)		(735)		143.6	%
Interest expense	41,634		30,844		10,790		35.0	%
Other expense (income)	248		(190)		438		(230.5)	%


Gains on sales of depreciable operating properties	—		(16,554)		16,554		100.0	%

Net Operating Income	$	180,293	$	190,779	$	(10,486)	(5.5)	%

The following tables summarize our Net Operating Income for our total portfolio:


	Three Months Ended June 30,
	2026										2025
	Same Property		Re/ Develop- ment		Acquisi- tion		Disposi- tion		Total		Same Property		Re/ Develop- ment		Acquisi- tion		Disposi- tion		Total
	(in thousands)
Operating revenues:
Rental income	$	254,833	$	1,370	$	10,157	$	1,597	$	267,957	$	251,373	$	109	$	—	$	22,835	$	274,317
Other property income	3,625		347		26		52		4,050		4,160		182		—		479		4,821
Total	258,458		1,717		10,183		1,649		272,007		255,533		291		—		23,314		279,138
Property and related expenses:
Property expenses	53,854		2,803		2,768		709		60,134		51,654		338		—		6,583		58,575
Real estate taxes	23,053		3,723		1,261		265		28,302		22,792		725		—		3,248		26,765

Ground leases	3,278		—		—		—		3,278		3,019		—		—		—		3,019
Total	80,185		6,526		4,029		974		91,714		77,465		1,063		—		9,831		88,359
Net Operating Income (Loss)	$	178,273	$	(4,809)	$	6,154	$	675	$	180,293	$	178,068	$	(772)	$	—	$	13,483	$	190,779


	Three Months Ended June 30, 2026 as compared to the Three Months Ended June 30, 2025
	Same Property				Re/Development		Acquisition	Disposition		Total
	Dollar Change		Percent Change		Dollar Change			Dollar Change			Dollar Change		Dollar Change
	($ in thousands)
Operating revenues:
Rental income	$	3,460	1.4	%	$	1,261		$	10,157		$	(21,238)	$	(6,360)

Other property income	(535)		(12.9)	%	165			26			(427)		(771)
Total	2,925		1.1	%	1,426			10,183			(21,665)		(7,131)
Property and related expenses:
Property expenses	2,200		4.3	%	2,465			2,768			(5,874)		1,559
Real estate taxes	261		1.1	%	2,998			1,261			(2,983)		1,537

Ground leases	259		8.6	%	—			—			—		259
Total	2,720		3.5	%	5,463			4,029			(8,857)		3,355
Net Operating Income Impact	$	205	0.1	%	$	(4,037)		$	6,154		$	(12,808)	$	(10,486)

Net Operating Income decreased $10.5 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily resulting from:

•A decrease of $12.8 million attributable to the Disposition Properties; and

•A decrease of $4.0 million attributable to the Re/Development Properties, primarily due to one development property with limited occupancy added to the stabilized portfolio in the first quarter of 2026, which resulted in the cessation of cost capitalization.

Partially offset by:

•An increase of $6.2 million attributable to the Acquisition Properties; and

•An increase of $0.2 million attributable to the Same Property Portfolio, which was driven by the following activity:

•An increase in total operating revenues of $2.9 million, primarily due to a(n):

•$3.8 million increase in settlement income;

•$2.6 million increase in base rent attributable to $1.8 million from higher average occupancy levels and $0.8 million from higher rental rates;

•$0.5 million increase in revenues primarily due to parking and residential income.

Partially offset by:

•$1.8 million decrease in revenue primarily due to the repayment of a fully reserved accounts receivable in 2025;

•$1.8 million decrease in amortization of deferred income and tenant funded improvements, mainly resulting from tenant move outs; and

•$0.4 million decrease in reimbursement revenues, primarily due to a decrease in recoverable operating expenses.

•An increase in property and related expenses of $2.7 million, primarily due to a(n):

•Approximately $2.2 million increase in property expenses, primarily due to an increase in utilities and repairs and maintenance;

•$0.3 million increase in ground lease expense; and

•$0.3 million increase in real estate taxes, primarily due to higher assessed property values.

Lease Termination Fees

Lease termination fees decreased $10.4 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to a large lease termination fee recognized for one of the tenants in the San Francisco region in the second quarter of 2025.

General and Administrative Expenses

General and administrative expenses increased $0.5 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to an increase in corporate initiatives.

Leasing Costs

Leasing costs increased $0.5 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to higher leasing volumes during the three months ended June 30, 2026.

Depreciation and Amortization

Depreciation and amortization increased $5.9 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to the following:

•An increase of $7.3 million attributable to a full quarter of expense related to the Acquisition Properties;

•An increase of $5.6 million attributable to the Re/Development Properties, primarily due to the one property added to the stabilized portfolio in the first quarter of 2026; and

•An increase of $1.3 million attributable to the Same Property Portfolio, primarily due to revenue recognition commencing for one tenant in the Seattle region in the third quarter of 2025.

Partially offset by:

•A decrease of $8.3 million attributable to the Disposition Properties.

Interest Income

Interest income increased $0.7 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to higher average balances maintained in interest-bearing accounts.

Interest Expense

The following table sets forth our gross interest expense and capitalized interest:


	Three Months Ended June 30,
	2026			2025			Dollar Change		Percentage Change
	($ in thousands)
Gross interest expense	$	53,266		$	52,177		$	1,089	2.1	%
Capitalized interest	(11,632)			(21,333)			9,701		(45.5)	%
Interest expense	$	41,634		$	30,844		$	10,790	35.0	%

Average Qualifying Costs	$	1,006,599		$	1,914,978		$	(908,379)	(47.4)	%
Weighted Average Interest and Loan Fee Amortization Rate	4.62		%	4.47		%			0.15	%

Gross interest expense, before the effect of capitalized interest, increased $1.1 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to additional loan fee amortization for the three months ended June 30, 2026.

Capitalized interest decreased $9.7 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to the stabilization of the one development property added to the stabilized portfolio during the first quarter of 2026, at which point we stopped capitalizing interest. Capitalized interest will vary based on the current status of active development or redevelopment projects and our future development pipeline. For additional information about the potential impact of inflation on our interest expense and construction costs, and the impact on our business, financial condition, results of operations, cash flows, liquidity, and ability to satisfy our debt service obligations, refer to “Part I, Item 1A. Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2025.

Net Income Attributable to Noncontrolling Interests in Consolidated Property Partnerships

Net income attributable to noncontrolling interests in consolidated property partnerships decreased $5.8 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to lease termination fee income attributable from one tenant in the second quarter of 2025. The amounts reported for the three months ended June 30, 2026 and 2025 are comprised of the share of net income attributable to noncontrolling interests for 100 First LLC, 303 Second LLC, and Redwood LLC. See Note 1 “Organization, Ownership, and Basis of Presentation” to our consolidated financial statements included in this report for additional information.

Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025

The following table summarizes our Net Operating Income for our total portfolio:


	Six Months Ended June 30,				Dollar Change		Percentage Change
	2026		2025
	($ in thousands)
Reconciliation of Net Income Available to Common Stockholders to Net Operating Income, as defined:
Net Income Available to Common Stockholders	$	638	$	107,457	$	(106,819)	(99.4)	%



Net income attributable to noncontrolling common units of the Operating Partnership	8		1,038		(1,030)		(99.2)	%
Net income attributable to noncontrolling interests in consolidated property partnerships	9,396		14,754		(5,358)		(36.3)	%
Net income	$	10,042	$	123,249	$	(113,207)	(91.9)	%
Lease termination fees	(762)		(11,260)		10,498		(93.2)	%
General and administrative expenses	39,632		35,376		4,256		12.0	%
Leasing costs	5,824		5,150		674		13.1	%

Depreciation and amortization	187,904		174,744		13,160		7.5	%
Interest income	(2,201)		(1,646)		(555)		33.7	%
Interest expense	80,145		61,992		18,153		29.3	%
Other income	(141)		(33)		(108)		327.3	%


Gains on sales of depreciable operating properties	(23,525)		(16,554)		(6,971)		42.1	%
Impairment of real estate assets	61,778		—		61,778		100.0	%
Net Operating Income	$	358,696	$	371,018	$	(12,322)	(3.3)	%

The following tables summarize our Net Operating Income for our total portfolio:


	Six Months Ended June 30,
	2026										2025
	Same Property		Re/Develop- ment		Acquisi- tion		Disposi- tion		Total		Same Property		Re/Develop- ment		Acquisi- tion		Disposi- tion		Total
	(in thousands)
Operating revenues:
Rental income	$	502,875	$	1,999	$	19,972	$	8,043	$	532,889	$	494,979	$	263	$	—	$	44,813	$	540,055

Other property income	7,598		663		241		271		8,773		7,934		439		—		1,048		9,421
Total	510,473		2,662		20,213		8,314		541,662		502,913		702		—		45,861		549,476
Property and related expenses:
Property expenses	106,111		4,443		5,526		3,337		119,417		103,805		730		—		12,754		117,289
Real estate taxes	46,478		6,551		2,521		1,534		57,084		47,188		1,527		—		6,415		55,130

Ground leases	6,465		—		—		—		6,465		6,039		—		—		—		6,039
Total	159,054		10,994		8,047		4,871		182,966		157,032		2,257		—		19,169		178,458
Net Operating Income (Loss)	$	351,419	$	(8,332)	$	12,166	$	3,443	$	358,696	$	345,881	$	(1,555)	$	—	$	26,692	$	371,018


	Six Months Ended June 30, 2026 as compared to the Six Months Ended June 30, 2025
	Same Property				Re/Development		Acquisition		Disposition		Total
	Dollar Change		Percent Change		Dollar Change		Dollar Change		Dollar Change		Dollar Change
	($ in thousands)
Operating revenues:
Rental income	$	7,896	1.6	%	$	1,736	$	19,972	$	(36,770)	$	(7,166)

Other property income	(336)		(4.2)	%	224		241		(777)		(648)
Total	7,560		1.5	%	1,960		20,213		(37,547)		(7,814)
Property and related expenses:
Property expenses	2,306		2.2	%	3,713		5,526		(9,417)		2,128
Real estate taxes	(710)		(1.5)	%	5,024		2,521		(4,881)		1,954

Ground leases	426		7.1	%	—		—		—		426
Total	2,022		1.3	%	8,737		8,047		(14,298)		4,508
Net Operating Income Impact	$	5,538	1.6	%	$	(6,777)	$	12,166	$	(23,249)	$	(12,322)

Net Operating Income decreased $12.3 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily resulting from:

•A decrease of $23.2 million attributable to the Disposition Properties; and

•A decrease of $6.8 million attributable to the Re/Development Properties, primarily due to one development property with limited occupancy added to the stabilized portfolio in the first quarter of 2026, which resulted in the cessation of cost capitalization.

Partially offset by:

•An increase of $12.2 million attributable to the Acquisition Properties; and

•An increase of $5.5 million attributable to the Same Property Portfolio, which was driven by the following activity:

•An increase in total operating revenues of $7.6 million primarily due to a(n):

•$4.1 million increase in settlement income;

•$3.7 million increase in base rent attributable to $2.2 million from increased occupancy and $1.5 million from higher rates;

•$1.3 million increase in revenues primarily due to parking and residential income; and

•$0.4 million increase in reimbursement revenues, primarily due to an increase in recoverable operating expenses.

Partially offset by:

•$1.9 million decrease in amortization of deferred income and tenant funded improvements, mainly resulting from tenant move outs;

•An increase in property and related expenses of $2.0 million primarily due to a(n):

•Approximately $2.3 million increase in property expenses, primarily due to an increase in utilities and contract services; and

•$0.4 million increase in ground lease expense.

Partially offset by:

•$0.7 million decrease in real estate taxes, primarily due to an increase in refunds of $1.4 million received in 2026, offset partially by a $0.7 million increase resulting from higher assessed property values.

Lease Termination Fees

Lease termination fees decreased $10.5 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to a large lease termination fee recognized for one of the tenants in the San Francisco region in the second quarter of 2025.

General and Administrative Expenses

General and administrative expenses increased $4.3 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to a $2.1 million increase in compensation expenses and lower internal overhead capitalization and a $2.1 million increase in corporate initiatives.

Leasing Costs

Leasing costs increased $0.7 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to an increase in leasing deal costs and leasing overhead during the six months ended June 30, 2026.

Depreciation and Amortization

Depreciation and amortization increased $13.2 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to the following:

•An increase of $14.8 million attributable to the Acquisition Properties;

•An increase of $10.2 million attributable to the Re/Development Properties, primarily due to the one property added to the stabilized portfolio in the first quarter of 2026; and

•An increase of $2.6 million attributable to the Same Property Portfolio, primarily due to revenue recognition commencing for two tenants in the Seattle region in third quarter of 2025 and first quarter of 2026, and four tenants in the Los Angeles region during the first quarter of 2026.

Partially offset by:

•A decrease of $14.4 million attributable to the Disposition Properties.

Interest Income

Interest income increased $0.6 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to higher average balances maintained in interest-bearing accounts.

Interest Expense

The following table sets forth our gross interest expense and capitalized interest:


	Six Months Ended June 30,
	2026			2025			Dollar Change		Percentage Change
	($ in thousands)
Gross interest expense	$	105,768		$	103,873		$	1,895	1.8	%
Capitalized interest	(25,623)			(41,881)			16,258		(38.8)	%
Interest expense	$	80,145		$	61,992		$	18,153	29.3	%

Average Qualifying Costs	$	1,130,888		$	1,890,610		$	(759,722)	(40.2)	%
Weighted Average Interest and Loan Fee Amortization Rate	4.53		%	4.47		%			0.06	%

Gross interest expense, before the effect of capitalized interest, increased $1.9 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to additional loan fee amortization and an increase in weighted average interest rate for the six months ended June 30, 2026.

Capitalized interest decreased $16.3 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to the stabilization of the one development property added to the stabilized portfolio during the first quarter of 2026, at which point we stopped capitalizing interest. Capitalized interest will vary based on the current status of active development or redevelopment projects and our future development pipeline. For additional information about the potential impact of inflation on our interest expense and construction costs, and the impact on our business, financial condition, results of operations, cash flows, liquidity, and ability to satisfy our debt service obligations, refer to “Part I, Item 1A. Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2025.

Net Income Attributable to Noncontrolling Interests in Consolidated Property Partnerships

Net income attributable to noncontrolling interests in consolidated property partnerships decreased $5.4 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to lease termination fee income from one tenant in 2025. The amounts reported for the six months ended June 30, 2026 and 2025 are comprised of the share of net income attributable to noncontrolling interests for 100 First LLC, 303 Second LLC, and Redwood LLC. See Note 1 “Organization, Ownership, and Basis of Presentation” to our consolidated financial statements included in this report for additional information.

Liquidity and Capital Resources of the Company

In this “Liquidity and Capital Resources of the Company” section, the term the “Company” refers only to Kilroy Realty Corporation on an unconsolidated basis and excludes the Operating Partnership and all other subsidiaries. As the sole general partner with control of the Operating Partnership, the Company consolidates the Operating Partnership for financial reporting purposes, and the Company does not have significant assets other than its investment in the Operating Partnership. Therefore, the assets and liabilities and the revenues and expenses of the Company and the Operating Partnership are substantially the same on their respective financial statements. The section entitled “Liquidity and Capital Resources of the Operating Partnership” should be read in conjunction with this section to understand the liquidity and capital resources of the Company on a consolidated basis and how the Company is operated as a whole.

Our liquidity, access to capital, and ability to execute our business strategy are subject to a variety of risks and uncertainties. Our ability to obtain financing, raise capital through dispositions or joint ventures, recycle capital through tax‑deferred transaction structures, fund development activity, or pursue acquisition opportunities will depend on a number of factors, many of which are outside of our control. These factors include conditions in the public and private capital markets, interest rate and inflation trends, the availability and cost of debt and equity financing, the demand for our properties, the timing and pricing of potential dispositions, the performance of our development projects, and broader macroeconomic and geopolitical conditions.

Distributions from the Operating Partnership are the Company’s primary source of capital. The Company believes the Operating Partnership’s sources of working capital, specifically its cash flows from operations, borrowings available under its unsecured revolving credit facility, and funds from its capital recycling program, including strategic ventures, are adequate for it to make its distribution payments to the Company to make dividend payments to its common stockholders for the next twelve months. The unavailability of capital could adversely affect the Operating Partnership’s ability to make distributions to the Company, which would in turn adversely affect the Company’s ability to pay cash dividends to its stockholders.

The Company is a well-known seasoned issuer and the Company and the Operating Partnership have an effective shelf registration statement that provides for the public offering and sale from time to time by the Company and the Operating Partnership of certain securities in unlimited amounts. The Company evaluates the capital markets on an ongoing basis for opportunities to raise capital, and, as circumstances warrant, the Company and the Operating Partnership may issue securities in one or more offerings at any time and from time to time on an opportunistic basis, depending upon, among other things, market conditions, available pricing, and capital needs. When the Company receives proceeds from the sales of its securities, it generally contributes the net proceeds from those sales to the Operating Partnership in exchange for corresponding preferred or common partnership units of the Operating Partnership.

Liquidity Highlights

As of June 30, 2026, the Company had approximately $1.6 billion in available liquidity, including $1.3 billion available under the revolving credit facility, $50.0 million available under the unsecured term loan facility, and $253.8 million of cash and cash equivalents. We believe that our available liquidity makes us well positioned to navigate any additional future uncertainties.

Distribution Requirements

The Company is required to distribute 90% of its taxable income (subject to certain adjustments and excluding net capital gains) on an annual basis to maintain qualification as a REIT for federal income tax purposes. As a result of these distribution requirements, the Operating Partnership cannot rely on retained earnings to fund its on-going operations to the same extent as other companies whose parent companies are not REITs. In addition, the Company may be required to use borrowings under the Operating Partnership’s revolving credit facility, if necessary, to meet REIT distribution requirements and maintain its REIT status. The Company may also need to raise capital to fund the Operating Partnership’s working capital needs, as well as potential developments of new or existing properties or acquisitions.

The Company intends to continue to make, but has not committed to making, regular quarterly cash distributions to common stockholders. All such distributions are at the discretion of the Board of Directors. The Company considers market factors and its performance in addition to REIT requirements in determining its distribution levels. Amounts accumulated for distribution to stockholders are invested primarily in interest-bearing accounts and short-term interest-bearing securities, which is consistent with the Company’s intention to maintain its qualification as a REIT. Such investments may include, for example,

obligations of the Government National Mortgage Association, other governmental agency securities, certificates of deposit, and interest-bearing bank deposits.

On May 19, 2026, the Board of Directors declared a regular quarterly cash dividend of $0.54 per share of common stock. The regular quarterly cash dividend was payable to stockholders of record on June 30, 2026 and a corresponding cash distribution of $0.54 per Operating Partnership unit was payable to holders of the Operating Partnership’s common limited partnership interests of record on June 30, 2026, including those owned by the Company. The total cash quarterly dividends and distributions paid on July 8, 2026 were $63.4 million.

The covenants contained within certain of our unsecured debt obligations generally prohibit the Company from making distribution payments during an event of default except to the extent that such payments result in distributions sufficient to (i) maintain our qualification as a REIT for federal and state income tax purposes, and (ii) avoid the payment of federal or state income or excise tax.

Capitalization

As of June 30, 2026, our total debt as a percentage of total market capitalization was 51.0%, as shown in the following table:


	Shares / Units	Aggregate Principal Amount or $ Value Equivalent (in thousands)		% of Total Market Capitalization

Debt: (1) (2)

Term Loan Facility due 2031		$	200,000	2.2	%
Unsecured Senior Notes Series B due 2026 (3)		200,000		2.2	%
Unsecured Senior Notes Series A & B due 2027 & 2029		250,000		2.8	%
Unsecured Senior Notes due 2031		350,000		3.9	%
Unsecured Senior Notes due 2028 (4)		400,000		4.5	%
Unsecured Senior Notes due 2029		400,000		4.5	%
Unsecured Senior Notes due 2030		500,000		5.5	%
Unsecured Senior Notes due 2032 (4)		425,000		4.7	%
Unsecured Senior Notes due 2033 (4)		450,000		5.0	%
Unsecured Senior Notes due 2035		400,000		4.5	%
Unsecured Senior Notes due 2036		400,000		4.5	%
Secured debt		597,227		6.7	%
Total debt		$	4,572,227	51.0	%
Equity and Noncontrolling Interests in the Operating Partnership: (5)
Common limited partnership units outstanding (6)	1,133,562	$	42,475	0.5	%
Shares of common stock outstanding	116,308,988	4,358,098		48.5	%
Total Equity and Noncontrolling Interests in the Operating Partnership		$	4,400,573	49.0	%
Total Market Capitalization		$	8,972,800	100.0	%

________________________

(1) Represents gross aggregate principal amount due at maturity before the effect of the following at June 30, 2026: $24.8 million of unamortized deferred financing costs for the unsecured term loan facility, unsecured senior notes, and secured debt and $10.3 million of unamortized discounts for the unsecured senior notes.

(2) As of June 30, 2026, there was no outstanding balance on the unsecured revolving credit facility.

(3) In July 2026, repaid the outstanding $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026, at par. Refer to Note 16 “Subsequent Events” to our consolidated financial statements for additional information.

(4) Green bond.

(5) Value based on closing price per share of our common stock of $37.47, as of June 30, 2026.

(6) Includes common units of the Operating Partnership not owned by the Company. Excludes noncontrolling interests in consolidated property partnerships.

Liquidity and Capital Resources of the Operating Partnership

In this “Liquidity and Capital Resources of the Operating Partnership” section, the terms “we,” “our,” and “us” refer to the Operating Partnership or the Operating Partnership and the Company together, as the context requires.

General

Our primary liquidity sources and uses are as follows:

Liquidity Sources

•Net cash flows from operations;

•Proceeds from our capital recycling program, including the disposition of assets and the formation of strategic ventures;

•Proceeds from additional secured or unsecured debt financings;

•Borrowings under the Operating Partnership’s unsecured revolving credit facility; and

•Proceeds from equity or preferred equity securities.

Liquidity Uses

•Debt service and principal payments, including debt maturities, debt repurchases, and redemptions;

•Capital expenditures, tenant improvements, and leasing costs;

•Development and redevelopment costs;

•Operating property or undeveloped land acquisitions;

•Distributions to common security holders; and

•Repurchases and redemptions of outstanding common stock of the Company.

General Strategy

Our general strategy is to maintain a conservative balance sheet with a strong credit profile and to maintain a capital structure that allows for financial flexibility and diversification of capital resources. We manage our capital structure to reflect a long-term investment approach and utilize multiple sources of capital to meet our long-term capital requirements. We believe that our current projected liquidity requirements for the next twelve-month period, as set forth above under the caption “—Liquidity Uses,” will be satisfied using a combination of the liquidity sources listed above, although there can be no assurance in this regard. We believe our disciplined capital structure and staggered debt maturities provide us with financial flexibility and enhance our ability to obtain additional sources of liquidity if necessary, and, therefore, we are well-positioned to refinance or repay maturing debt and to pursue our strategy of seeking attractive acquisition opportunities, which we may finance, as necessary, with future public and private issuances of debt and equity securities, although there can be no assurance in this regard.

Liquidity Sources

Unsecured Revolving Credit and Term Loan Facilities

The following table summarizes the balance and terms of our unsecured revolving credit facility:


	Unsecured Revolving Credit Facility
	June 30, 2026			December 31, 2025
	($ in thousands)
Outstanding borrowings	$	—		$	—
Remaining borrowing capacity (1)	1,250,000			1,100,000
Total borrowing capacity (1)	$	1,250,000		$	1,100,000
Interest rate (2)	4.68		%	5.07		%
Annual facility fee (3)	0.25%
Unamortized deferred financing costs (3)	$	18,522		$	9,150
Maturity date (4)	July 31, 2030			July 31, 2028

________________________

(3)Our annual facility fee is paid on a quarterly basis and is calculated based on total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs in connection with the amendment and restatement of the unsecured revolving credit facility, which are included in Prepaid expenses and other assets, net on our consolidated balance sheets, and will continue to be amortized through the amended maturity date.

(4)The maturity date may be extended by two six-month periods, at the Operating Partnership’s election.

The following table summarizes the balance and terms of our Term Loan Facility:


	Term Loan Facility
	June 30, 2026			December 31, 2025
	($ in thousands)
Outstanding borrowings (1)	$	200,000		$	200,000
Remaining borrowing capacity	50,000			—
Total borrowing capacity	$	250,000		$	200,000
Interest rate (2)	4.79		%	5.02		%
Unamortized deferred financing costs (3)	$	2,832		$	277
Maturity date (4)	July 31, 2031			October 3, 2026

____________________

(4)There are no extension options available under the terms of the amended and restated Term Loan Facility. As of December 31, 2025, one 12-month extension option was available.

Capital Recycling Program

As discussed in the section “Factors That May Influence Future Results of Operations - Capital Recycling Program,” we continuously evaluate opportunities for the potential disposition of non-core properties and undeveloped land in our portfolio, or the formation of strategic ventures, with the intent of using the proceeds generated to acquire new operating and development properties, finance development and redevelopment expenditures, repay long-term debt, and for other general corporate purposes.

In connection with our capital recycling strategy, during the six months ended June 30, 2026, we completed the sale of four operating properties to unaffiliated third parties for gross proceeds totaling approximately $347.5 million. The timing of any potential future disposition or strategic venture transactions will depend on market conditions and other factors, including, but not limited to, our capital needs, the availability of financing for potential buyers (which has been and may continue to be constrained due to current economic and market conditions), and our ability to absorb or defer some or all of the taxable gains on the sales.

Shelf Registration Statement

The Company and the Operating Partnership have an effective shelf registration statement that provides for the public offering and sale from time to time by the Company and the Operating Partnership of certain securities in unlimited amounts. The Company evaluates the capital markets on an ongoing basis for opportunities to raise capital, and, as circumstances warrant, the Company and the Operating Partnership may issue securities in one or more offerings at any time and from time to time on an opportunistic basis, depending upon, among other things, market conditions, available pricing, and capital needs. When the Company receives proceeds from the sales of its preferred or common stock, it generally contributes the net proceeds from those sales to the Operating Partnership in exchange for corresponding preferred or common partnership units of the Operating Partnership. The Operating Partnership may use these proceeds and proceeds from the sale of its debt securities to repay debt, including borrowings under its unsecured revolving credit facility and unsecured term loan facility, to develop new or redevelop existing properties, to make acquisitions of properties or portfolios of properties, or for general corporate purposes.

At-The-Market Stock Offering Program

Under the 2024 ATM Program, which commenced in March 2024, we may offer and sell shares of the Company’s common stock having an aggregate gross sales price of up to $500.0 million from time to time in “at-the-market” offerings. In connection with the 2024 ATM Program, the Company may also, at its discretion, enter into forward equity sale agreements. The use of forward equity sale agreements allows the Company to fix a share price on the sale of shares of our common stock at the time an agreement is executed but defer settling the forward equity sale agreements and receiving the proceeds from the sale of shares until a later date. The Company did not have any outstanding forward equity sale agreements to be settled at June 30, 2026. Since commencement of the 2024 ATM Program, we have not completed any sales of common stock.

Liquidity Uses

Unsecured Debt

Repayment of $50.0 million Unsecured Senior Notes Due 2026

In April 2026, the Company repaid the outstanding $50.0 million of 4.300% Private Placement Senior Notes Series A due July 2026, at par.

Contractual Obligations

Refer to our 2025 Annual Report on Form 10-K for a discussion of our contractual obligations. There have been no material changes outside of the ordinary course of business to these contractual obligations during the six months ended June 30, 2026, with the exception of the additional development commitments for 1900 Broadway.

Other Liquidity Uses

Potential Future Leasing Costs and Capital Improvements

The amounts we incur for tenant improvements and leasing costs depend on leasing activity in each period. Tenant improvements and leasing costs generally fluctuate in any given period depending on factors such as the type and condition of the property, the term of the lease, the type of the lease, the involvement of external leasing agents, and overall market conditions, including the level of inflation. Capital expenditures may fluctuate in any given period subject to the nature, extent, and timing of improvements required to maintain our properties and may be impacted by inflationary pressures on the cost of construction materials.

Development

We believe we may spend between $75.0 million to $125.0 million on development projects throughout the remainder of 2026. The ultimate timing of these expenditures may fluctuate given construction progress and leasing status of the projects, or as a result of events outside our control, such as delays or increased costs as a result of heightened inflation and market conditions. We expect that any material additional development activities will be funded with borrowings under the unsecured revolving credit facility, the public or private issuance of debt or equity securities, the disposition of assets under our capital recycling program, or strategic venture opportunities. We cannot provide assurance that development projects will be completed on the terms, for the amounts, or on the timelines currently contemplated, or at all.

Potential Future Acquisitions

As discussed in the section “—Factors That May Influence Future Results of Operations - Capital Recycling Program,” we continue to evaluate strategic opportunities and remain a disciplined buyer of core, value-add, and strategic operating properties and land, dependent on market conditions and business cycles, among other factors. We focus on growth opportunities primarily in markets populated by knowledge and creative-based tenants in a variety of industries, including technology, media, healthcare, life sciences, and professional services. We expect that any material acquisitions will be funded with borrowings under the unsecured revolving credit facility, the public or private issuance of debt or equity securities, the disposition of assets under our capital recycling program, the formation of strategic ventures, or through the assumption of existing debt, although there can be no assurance in this regard.

Debt Composition

The composition of the Operating Partnership’s aggregate debt balances between secured and unsecured and fixed-rate and variable-rate debt was as follows:


	Percentage of Total Debt (1) (2)				Weighted Average Interest Rate (1) (2)
	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
Secured vs. unsecured:
Unsecured	86.9	%	87.0	%	4.1	%	4.1	%
Secured	13.1	%	13.0	%	5.1	%	5.1	%
Variable-rate vs. fixed-rate:
Variable-rate	4.4	%	4.3	%	4.8	%	5.0	%
Fixed-rate	95.6	%	95.7	%	4.2	%	4.2	%
Stated rate					4.3	%	4.3	%
Effective rate (3)					4.6	%	4.6	%

________________________

(1) As of the end of the period presented.

(2) As of June 30, 2026 and December 31, 2025, there was no outstanding balance on the unsecured revolving credit facility.

(3) Includes the impact of an unused facility fee, amortization of deferred financing costs, and amortization of discounts.

Share Repurchase Program

Factors That May Influence Future Sources of Capital and Liquidity of the Company and the Operating Partnership

We continue to evaluate sources of financing for our business activities, including borrowings under the unsecured revolving credit facility, the unsecured term loan facility, issuance of public and private equity securities, unsecured debt and fixed-rate secured mortgage financing, proceeds from the disposition of selective assets through our capital recycling program, and the formation of strategic ventures. However, our ability to obtain new financing or refinance existing borrowings on favorable terms could be impacted by various factors, including the state of the macroeconomy, the state of the credit and equity markets, significant tenant defaults, a decline in the demand for commercial real estate properties, a decrease in market rental rates or market values of real estate assets in our submarkets, the amount of our future borrowings and uncertainty related to interest rates, inflation rates, geopolitical events, and other factors (refer to “Part I, Item 1A. Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2025 for additional information). These events could result in the following:

•A decrease in our cash flows from operations, which could create further dependence on the unsecured revolving credit facility;

•An increase in the proportion of variable-rate debt, which could increase our sensitivity to interest rate fluctuations in the future; and

•A decrease in the value of our properties, which could have an adverse effect on the Operating Partnership’s ability to incur additional debt, refinance existing debt at competitive rates, or comply with its existing debt obligations.

In addition to the factors noted above, the Operating Partnership’s credit ratings are subject to ongoing evaluation by credit rating agencies and may be changed or withdrawn by a rating agency in the future if, in its judgment, circumstances warrant.

Financial Covenants and Restrictions

The unsecured revolving credit facility, unsecured term loan facility, unsecured senior notes, and certain other secured debt arrangements contain covenants and restrictions requiring us to meet certain financial ratios and reporting requirements. The Operating Partnership was in compliance with all of its financial covenants as of June 30, 2026. Our current expectation is that the Operating Partnership will continue to meet the requirements of its financial covenants in both the short and long term. However, in the event of an economic slowdown or continued volatility in the credit markets, there is no certainty that the Operating Partnership will be able to continue to satisfy all the covenant requirements.

Consolidated Historical Cash Flows Summary

The following summary discussion of our consolidated historical cash flows is based on the consolidated statements of cash flows in Item 1. “Financial Statements” and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below. Changes in our cash flows include changes in cash and cash equivalents. Our historical cash flow activity is as follows:


	Six Months Ended June 30,
	2026		2025		Dollar Change		Percentage Change
	($ in thousands)
Net cash provided by operating activities	$	228,902	$	280,667	$	(51,765)	(18.4)	%
Net cash provided by (used in) investing activities	134,022		(100,343)		234,365		(233.6)	%
Net cash used in financing activities	(288,435)		(152,885)		(135,550)		88.7	%
Net increase in cash and cash equivalents	$	74,489	$	27,439	$	47,050	171.5	%

Operating Activities

Our cash flows from operating activities depends on numerous factors including the occupancy level of our portfolio, the rental rates achieved on our leases, the collectability of rent and recoveries from our tenants, the level of operating expenses, the impact of property acquisitions, completed development and redevelopment projects and related financing activities, and other general and administrative costs. See additional information under the caption “—Results of Operations.” Our net cash provided by operating activities decreased by $51.8 million, or 18.4%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to lower net cash operating income from properties that are not in the same property portfolio, decreased capitalized interest following the stabilization of a development property during the period, and a lease termination fee received from a tenant in the San Francisco region during the six months ended June 30, 2025.

Investing Activities

Our cash flows from investing activities are generally used to fund development and operating property acquisitions, expenditures for development and redevelopment projects, recurring and nonrecurring capital expenditures for our operating properties, and include net proceeds received from dispositions of real estate assets. We had net cash provided by investing activities of $134.0 million for the six months ended June 30, 2026 as compared to net cash used in investing activities of $100.3 million for the six months ended June 30, 2025, primarily due to the net proceeds received from the dispositions of our two operating properties and two residential properties during the six months ended June 30, 2026, partially offset by a $34.6 million payment in connection with a newly formed consolidated subsidiary, which includes the acquisition of a 1.1‑acre land parcel for a future development project.

Financing Activities

Our cash flows from financing activities are principally impacted by our capital raising activities, net of dividends and distributions paid to common stockholders and common unitholders. Our net cash used in financing activities increased by $135.6 million, or 88.7%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to the repayment of the $50.0 million unsecured private placement senior notes, as well as the common stock repurchases made during the six months ended June 30, 2026 under our current Share Repurchase Program.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates, assumptions, and judgments that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting periods. We base our estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates.

In our Annual Report on Form 10-K for the year ended December 31, 2025, we identified certain critical accounting policies that affect certain of our more significant estimates and assumptions used in preparing our consolidated financial statements. We have not made any material changes to our critical accounting policies and estimates during the period covered by this report.

Non-GAAP Supplemental Financial Measure: Funds From Operations (“FFO”)

We calculate FFO available to common stockholders and common unitholders in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of Nareit. The White Paper defines FFO as net income or loss (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO. Our calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. We also add back net income attributable to noncontrolling common units of the Operating Partnership because we report FFO attributable to common stockholders and common unitholders.

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

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

FFO should not be viewed as an alternative measure of our 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 our properties, which are significant economic costs and could materially impact our results from operations.

The following table presents our FFO:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Net income available to common stockholders	$	19,905	$	68,449	$	638	$	107,457
Adjustments:
Net income attributable 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
Depreciation and amortization of real estate assets	92,131		86,243		185,016		171,978
Gains on sales of depreciable operating properties	—		(16,554)		(23,525)		(16,554)
Impairment of real estate assets	—		—		61,778		—
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships	(7,508)		(13,366)		(15,127)		(20,472)
Funds From Operations (1) (2)	$	109,338	$	135,891	$	218,184	$	258,201

________________________

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

(2) FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of $3.3 million and $3.8 million for the three months ended June 30, 2026 and 2025, respectively, and $6.5 million and $7.5 million for the six months ended June 30, 2026 and 2025, respectively.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information about our market risk is disclosed in “Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and is incorporated herein by reference. There have been no material changes for the six months ended June 30, 2026, to the information provided in “Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

ITEM 4. CONTROLS AND PROCEDURES

Kilroy Realty Corporation

The Company maintains disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is processed, recorded, summarized, and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As required by SEC Rule 13a-15(b), the Company carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the disclosure controls and procedures as of June 30, 2026, the end of the period covered by this report. Based on the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded, as of that time, the disclosure controls and procedures were effective at the reasonable assurance level.

There have been no changes that occurred during the period covered by this report in the Company’s internal control over financial reporting identified in connection with the evaluation referenced above that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Kilroy Realty, L.P.

The Operating Partnership maintains disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in the Operating Partnership’s reports under the Exchange Act is processed, recorded, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer of its general partner, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As required by SEC Rule 13a-15(b), the Operating Partnership carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer of its general partner, of the effectiveness of the design and operation of the disclosure controls and procedures as of June 30, 2026, the end of the period covered by this report. Based on the foregoing, the Chief Executive Officer and Chief Financial Officer of its general partner concluded, as of that time, the disclosure controls and procedures were effective at the reasonable assurance level.

There have been no changes that occurred during the period covered by this report in the Operating Partnership’s internal control over financial reporting identified in connection with the evaluation referenced above that have materially affected, or are reasonably likely to materially affect, the Operating Partnership’s internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We and our properties are subject to routine litigation incidental to our business. These matters are generally covered by insurance. As of June 30, 2026, we are not a defendant in, and our properties are not subject to, any legal proceedings that we believe, if determined adversely to us, would have a material adverse effect upon our financial condition, results of operations or cash flows.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors included in the Company’s and the Operating Partnership’s annual report on Form 10-K for the year ended December 31, 2025.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) Recent Sales of Unregistered Securities: None.

(b) Use of Proceeds from Registered Securities: None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

(a).None

(b).None

(c).During the three months ended June 30, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each such term is defined in Item 408(a) of Regulation S-K.

ITEM 6. EXHIBITS


Exhibit Number						Description

3.(i)1						Articles of Amendment and Restatement of Kilroy Realty Corporation (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on May 21, 2020)

3.(i)2						Certificate of Limited Partnership of Kilroy Realty, L.P. (previously filed by Kilroy Realty, L.P., as an exhibit to the General Form for Registration of Securities on Form 10 as filed with the Securities and Exchange Commission on August 18, 2010)

3.(i)3						Amendment to the Certificate of Limited Partnership of Kilroy Realty, L.P. (previously filed by Kilroy Realty, L.P., as an exhibit to the General Form for Registration of Securities on Form 10 as filed with the Securities and Exchange Commission on August 18, 2010)

3.(ii)1						Ninth Amended and Restated Bylaws of Kilroy Realty Corporation (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on June 4, 2024)

3.(ii)2						Seventh Amended and Restated Agreement of Limited Partnership of Kilroy Realty, L.P. dated as of August 15, 2012, as amended (previously filed by Kilroy Realty Corporation on Form 10-Q for the quarter ended June 30, 2014)

10.1*						Fifth Amended and Restated Credit Agreement dated as of June 12, 2026

10.2*						Amended and Restated Term Loan Agreement dated as of June 12, 2026

10.3*						Fifth Amended and Restated Guarantee dated as of June 12, 2026

10.4*						Amended and Restated Term Loan Guarantee dated as of June 12, 2026

10.5†						Amended and Restated Kilroy Realty 2006 Incentive Award Plan dated as of May 19, 2026 (previously filed by Kilroy Realty Corporation as an exhibit on Form 8-K as filed with the Securities and Exchange Commission on May 19, 2026)

31.1*						Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of Kilroy Realty Corporation

31.2*						Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Kilroy Realty Corporation

31.3*						Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of Kilroy Realty, L.P.

31.4*						Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Kilroy Realty, L.P.

32.1*						Section 1350 Certification of Chief Executive Officer of Kilroy Realty Corporation

32.2*						Section 1350 Certification of Chief Financial Officer of Kilroy Realty Corporation

32.3*						Section 1350 Certification of Chief Executive Officer of Kilroy Realty, L.P.

32.4*						Section 1350 Certification of Chief Financial Officer of Kilroy Realty, L.P.

101.1						The following Kilroy Realty Corporation and Kilroy Realty, L.P. financial information for the quarter ended June 30, 2026, formatted in inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Equity (unaudited), (iv) Consolidated Statements of Capital (unaudited), (v) Consolidated Statements of Cash Flows (unaudited) and (vi) Notes to the Consolidated Financial Statements (unaudited).(1)

104.1*						Cover Page Interactive Data File - The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

_______________


*			Filed herewith.
†			Management contract or compensatory plan or arrangement.
(1)			Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on July 28, 2026.


KILROY REALTY CORPORATION

	By:	/s/ Angela M. Aman
		Angela M. Aman Chief Executive Officer (Principal Executive Officer)

	By:	/s/ Jeffrey R. Kuehling
		Jeffrey R. Kuehling Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)

	By:	/s/ Chandni Jalan
		Chandni Jalan Senior Vice President, Chief Accounting Officer (Principal Accounting Officer)

SIGNATURES


KILROY REALTY, L.P.

	BY: KILROY REALTY CORPORATION
	Its general partner

	By:	/s/ Angela M. Aman
		Angela M. Aman Chief Executive Officer (Principal Executive Officer)

	By:	/s/ Jeffrey R. Kuehling
		Jeffrey R. Kuehling Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)

	By:	/s/ Chandni Jalan
		Chandni Jalan Senior Vice President, Chief Accounting Officer (Principal Accounting Officer)