Kilroy Realty : Q1 2020 Supplemental Financial Report

	Kilroy Realty Corporation
	First Quarter 2020 Supplemental Financial Report
	Table of Contents
		Page
	Corporate Data and Financial Highlights
	Company Background	1
	Executive Summary	2
	Financial Highlights	3
	Common Stock Data	4
	Consolidated Balance Sheets	5
	Consolidated Statements of Operations	6
	Funds From Operations and Funds Available for Distribution	7-8
	Net Operating Income	9
	Portfolio Data
	Same Store Analysis	10
	Stabilized Portfolio Occupancy Overview by Region	11-15
	Information on Leases Commenced & Leases Executed	16
	Stabilized Portfolio Capital Expenditures	17
	Stabilized Portfolio Lease Expirations	18-20
	Top Fifteen Tenants	21
	Consolidated Ventures (Noncontrolling Property Partnerships)	22
	Development
	Stabilized Office Development Projects & Completed Residential Development Projects	23
	In-ProcessDevelopment	24
	Future Development Pipeline	25
	Debt and Capitalization Data
	Capital Structure	26
	Debt Analysis	27-28
	Non-GAAPSupplemental Measures	29-31
	Definitions & Reconciliations	32-35

This Supplemental Financial Report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, among other things, information concerning lease expirations, debt maturities, potential investments, development and redevelopment activity, projected construction costs, dispositions and other forward-looking financial data. In some instances, forward-looking statements can be identified by the use of forward-looking terminology such as "expect," "future," "will," "would," "pursue," or "project" and variations of such words and similar expressions that do not relate to historical matters. Forward-looking statements are based on Kilroy Realty Corporation's current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of Kilroy Realty Corporation's control. Accordingly, actual performance, results and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants'businesses; our ability to re-lease property at or above current market rates; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers' financial condition and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; our ability to maintain our status as a REIT; and uncertainties regarding the impact of the COVID-19 pandemic, and restrictions intended to prevent its spread, on our business and the economy generally. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect Kilroy Realty Corporation's business and financial performance, see the factors included under the caption "Risk Factors" in Kilroy Realty Corporation's quarterly report on Form 10-Q for the period ending March 31, 2020 to be filed on April 30, 2020 and in its annual report on Form 10-K for the year ended December 31, 2019, and its other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. Kilroy Realty Corporation assumes no obligation to update any forward-looking statement made in this Supplemental Financial Report that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Company Background

Kilroy Realty Corporation (NYSE:KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the West Coast's premier landlords. The Company has over seven decades of experience developing, acquiring and managing office and mixed-use real estate assets. At March 31, 2020, the Company's stabilized portfolio totaled approximately 14.3 million square feet of primarily office and life science space that was 93.5% occupied and 97.3% leased located in the coastal regions of Los Angeles, San Diego, the San Francisco Bay Area and Greater Seattle and 200 residential units located in the Hollywood submarket of Los Angeles.

Board of Directors			Executive Management Team		Investor Relations
John Kilroy	Chairman		John Kilroy	President and CEO		12200 W. Olympic Blvd., Suite 200
Edward F. Brennan, PhD	Lead Independent		Jeffrey C. Hawken	Executive VP and COO		Los Angeles, CA 90064
Jolie Hunt			Robert Paratte	Executive VP, Leasing and Business Development	[phone]
			Web: www.kilroyrealty.com
Scott S. Ingraham			Tyler H. Rose	Executive VP and CFO		E-mail: [e-mail]
Gary R. Stevenson			Heidi R. Roth	Executive VP and Chief Administrative Officer
Peter B. Stoneberg			Justin W. Smart	Executive VP, Development and Construction Services

Equity Research Coverage

BofA Securities		J.P. Morgan
James Feldman	[phone]	Anthony Paolone	[phone]
BMO Capital Markets Corp.		KeyBanc Capital Markets
John P. Kim	[phone]	Craig Mailman	[phone]
BTIG		Mizuho Securities USA LLC
Thomas Catherwood	[phone]	Omotayo Okusanya	[phone]
Citigroup Investment Research		RBC Capital Markets
Michael Bilerman	[phone]	Mike Carroll	[phone]
Deutsche Bank Securities, Inc.		Robert W. Baird & Co.
Derek Johnston	[phone]	David B. Rodgers	[phone]
Evercore ISI		Scotiabank
Steve Sakwa	[phone]	Nicholas Yulico	[phone]
Goldman Sachs & Co. LLC		Stifel, Nicolaus & Company
Richard Skidmore	[phone]	John W. Guinee III	[phone]
Green Street Advisors		Wells Fargo
Daniel Ismail	[phone]	Blaine Heck	[phone]
Jefferies LLC
Peter Abramowitz	[phone]

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

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Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Executive Summary

Quarterly Financial Highlights

• Net income available to common stockholders per share of $0.37
• FFO per share of $1.00
• The per share amounts above include a reduction in revenue of approximately $0.06 per share related to the cumulative impact of transitioning oneco-working tenant and two retail tenants to a cash basis of reporting as a result of the COVID-19 pandemic
• Revenues of $221.3 million, net of a $6.5 million reduction of revenue as noted above
• Same Store GAAP NOI decreased 0.2% compared to the prior year
• Same Store Cash NOI increased 14.9% compared to the prior year
• Due to the uncertainty resulting from theCOVID-19 pandemic, the Company is withdrawing its previous full year 2020 guidance

Quarterly Operating Highlights

• Stabilized portfolio was 93.5% occupied and 97.3% leased atquarter-end
• 137,993 square feet of leases commenced in the stabilized portfolio
• 221,728 square feet of leases executed in the stabilized portfolio
• • GAAP rents increased approximately 57.5% from prior levels
  • Cash rents increased approximately 45.3% from prior levels
• As of the date of this report, across all property types, collected approximately 96% of our April 2020 contractual rent billings, including from all of our top 15 tenants and excluding a rent relief program with certain retail tenants. Adjusted for the retail rent relief program, collected 93% of contractual rent billings

Capital Markets Highlights		Strategic Highlights

• In February, completed a public offering of 5,750,000 shares of common stock priced at $86.00 per share structured as a12-month forward sale. In March, fully physically settled these shares for net proceeds of approximately $474.9 million
• In March, fully physically settled 3,147,110 shares of common stock in connection with forward transactions under the ATM program for net proceeds of approximately $247.3 million
• In April, completed a private placement of $350.0 million aggregate principal amount often-year, 4.27% unsecured senior notes due 2031
• As of the date of this report, approximately $1.0 billion of unrestricted cash on hand and $370.0 million of availability under the unsecured revolving credit facility

• In January, transferred 333 Dexter, a 635,000 square foot development project located in the South Lake Union submarket of Seattle from the under construction phase to the tenant improvement phase. The project is 100% leased to a Fortune 50 public company
• In January, transferred Netflix // On Vine, a 355,000 square foot development project located in the Hollywood submarket of Los Angeles, from the under construction phase to the tenant improvement phase. This project is 100% leased to Netflix, Inc.
• In February, completed construction on 225 residential units, the second of three phases of the residential development at our One Paseomixed-use project in the Del Mar submarket of San Diego. Together, Phases I and II were 44% leased and are in lease-up
• In March, completed and added The Exchange on 16th, a $585.0 million, 750,000 square foot development project located in San Francisco's Mission Bay district, to the stabilized portfolio. The office component of the project is 100% leased to Dropbox
• In March, added One Paseo Retail, a 96,000 square foot retail development project located in San Diego's Del Mar submarket, to the stabilized portfolio
• In March, transferred One Paseo Office, a 285,000 square foot development project located in the Del Mar submarket of San Diego from the under construction phase to the tenant improvement phase

________________________

Note: Definitions for commonly used terms in this Supplemental Financial Report are on pages 32-33 "Definitions Included in Supplemental."

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Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Financial Highlights

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

							Three Months Ended
			3/31/2020 (1)			12/31/2019 (1)			9/30/2019			6/30/2019 (1)			3/31/2019
INCOME ITEMS:
	Revenues	$	221,328		$	220,235	$	215,525		$	200,492	$	201,202
	Lease Termination Fees, net		60			-			-		1,824			1,888
	Net Operating Income (2)		157,826			154,679			152,170			141,916			142,442
	Capitalized Interest and Debt Costs		21,418			20,339			20,585			20,880			19,437
	Net Income Available to Common Stockholders		39,817			72,500			43,846			42,194			36,903
	EBITDA, as adjusted (2) (3)		134,232			131,734			129,163			120,025			119,172
	Funds From Operations (3) (4)		110,173			109,518			109,243			99,905			99,812
	Net Income Available to Common Stockholders per common share - diluted (5)	$	0.37		$	0.67	$	0.41		$	0.41	$	0.36
	Funds From Operations per common share - diluted (3) (4)	$	1.00		$	1.00	$	1.01		$	0.95	$	0.95
	LIQUIDITY ITEMS:
	Funds Available for Distribution (4)	$	84,899		$	65,443	$	65,078		$	52,369	$	65,934
	Dividends per common share (5)	$	0.485		$	0.485	$	0.485		$	0.485	$	0.455
RATIOS:
	Net Operating Income Margins		71.3%			70.2%			70.6%			70.8%			70.8%
	Fixed Charge Coverage Ratio		3.9x		4.0x			4.2x		3.9x			4.0x
	FFO Payout Ratio		51.5%			47.8%			48.0%			50.0%			46.9%
	FAD Payout Ratio		66.9%			80.1%			80.5%			95.4%			71.1%
ASSETS:
	Real Estate Held for Investment before Depreciation	$	9,822,116		$	9,628,773	$	8,977,843		$	8,824,558	$	8,616,167
	Total Assets		9,735,147			8,900,094			8,623,815			8,094,721			7,883,987
CAPITALIZATION: (6)
	Total Debt	$	3,713,236		$	3,579,502	$	3,334,967		$	3,210,427	$	3,020,882
	Total Common Equity and Noncontrolling Interests in the Operating Partnership		7,458,583			9,064,520			8,414,862			7,602,085			7,823,144
	Total Market Capitalization		11,171,819			12,644,022			11,749,829			10,812,512			10,844,026
	Total Debt / Total Market Capitalization		33.2%			28.3%			28.4%			29.7%			27.9%

______________________________________________________

Note: Definitions for commonly used terms in this Supplemental Financial Report are on pages 32-33 "Definitions Included in Supplemental."

1. Net Income Available to Common Stockholders includes a reduction in revenue of $6.5 million related to the cumulative impact of transitioning oneco-working tenant and two retail tenants to a cash basis of reporting as a result of the COVID-19 pandemic for the three months ended March 31, 2020 and $29.6 million and $7.2 million of gains on sale of depreciable operating properties for the three months ended December 31, 2019 and June 30, 2019, respectively.
2. Please refer to pages34-35 for reconciliations of GAAP Net Income Available to Common Stockholders to Net Operating Income and EBITDA, as adjusted. The Company's calculation of EBITDA, as adjusted, is the same as EBITDAre, as defined by NAREIT, as the Company does not have any unconsolidated joint ventures.
3. EBITDA, as adjusted, and Funds From Operations include a reduction in revenue of $6.5 million related to the cumulative impact of transitioning oneco-working tenant and two retail tenants to a cash basis of reporting as a result of the COVID-19 pandemic for the three months ended March 31, 2020.
4. Please refer to page 7 for reconciliations of GAAP Net Income Available to Common Stockholders to Funds From Operations available to common stockholders and unitholders and Funds Available for Distribution to common stockholders and unitholders and page 8 for a reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution to common stockholders and unitholders.
5. Reported amounts are attributable to common stockholders, common unitholders and restricted stock unit holders.
6. Please refer to page 26 for additional information regarding our capital structure.

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Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Common Stock Data (NYSE: KRC)

									Three Months Ended
			3/31/2020			12/31/2019			9/30/2019			6/30/2019			3/31/2019
	High Price	$	88.28	$	84.50	$	80.06	$	78.36	$	76.50
	Low Price	$	49.01	$	76.35	$	74.25	$	72.87	$	61.44
	Closing Price	$	63.70	$	83.90	$	77.89	$	73.81	$	75.96
	Dividends per share - annualized	$	1.94	$	1.94	$	1.94	$	1.94	$	1.82
	Closing common shares (in 000's) (1)		115,068			106,016			106,012			100,972			100,967
	Closing common partnership units (in 000's) (1)		2,021			2,023			2,023			2,023			2,023
			117,089			108,039			108,035			102,995			102,990

________________________

1. As of the end of the period.

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Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Consolidated Balance Sheets

(unaudited, $ in thousands)

			3/31/2020			12/31/2019			9/30/2019			6/30/2019			3/31/2019
	ASSETS:
	Land and improvements	$	1,506,357	$	1,466,166	$	1,315,448	$	1,284,582	$	1,184,496
	Buildings and improvements		5,997,523			5,866,477			5,770,226			5,712,448			5,300,313
	Undeveloped land and construction in progress		2,318,236			2,296,130			1,892,169			1,827,528			2,131,358
	Total real estate assets held for investment		9,822,116			9,628,773			8,977,843			8,824,558			8,616,167
	Accumulated depreciation and amortization		(1,622,369)			(1,561,361)			(1,505,785)			(1,480,766)			(1,441,506)
	Total real estate assets held for investment, net		8,199,747			8,067,412			7,472,058			7,343,792			7,174,661
	Real estate assets and other assets held for sale, net		-			-			77,751			-			-
	Cash and cash equivalents		762,134			60,044			297,620			52,415			49,693
	Restricted cash		16,300			16,300			6,300			6,300			6,300
	Marketable securities		19,984			27,098			26,188			25,203			24,098
	Current receivables, net		16,534			26,489			34,116			27,563			28,016
	Deferred rent receivables, net		352,352			337,937			314,812			297,358			280,756
	Deferred leasing costs and acquisition-related intangible assets, net		204,392			212,805			202,063			203,451			187,309
	Right of use ground lease assets		96,145			96,348			83,200			82,647			82,794
	Prepaid expenses and other assets, net		67,559			55,661			109,707			55,992			50,360
	TOTALASSETS	$	9,735,147		$	8,900,094		$	8,623,815		$	8,094,721		$	7,883,987
	LIABILITIES AND EQUITY:
	Liabilities:
	Secured debt, net	$	257,359	$	258,593	$	259,027	$	259,455	$	259,878
	Unsecured debt, net		3,050,103			3,049,185			3,048,209			2,553,651			2,552,883
	Unsecured line of credit		380,000			245,000			-			375,000			185,000
	Accounts payable, accrued expenses and other liabilities		417,547			418,848			439,081			385,567			373,691
	Ground lease liabilities		98,247			98,400			87,617			87,082			87,247
	Accrued dividends and distributions		57,620			53,219			53,205			50,800			47,676
	Deferred revenue and acquisition-related intangible liabilities, net		130,843			139,488			134,828			136,266			138,973
	Rents received in advance and tenant security deposits		65,913			66,503			57,428			59,997			55,457
	Liabilities and deferred revenue of real estate assets held for sale		-			-			4,911			-			-
	Total liabilities		4,457,632			4,329,236			4,084,306			3,907,818			3,700,805
	Equity:
	Stockholders' Equity
	Common stock		1,151			1,060			1,060			1,010			1,010
	Additional paid-in capital		5,067,181			4,350,917			4,342,296			3,984,867			3,976,204
	Distributions in excess of earnings		(76,182)			(58,467)			(78,707)			(70,345)			(62,690)
	Total stockholders' equity		4,992,150			4,293,510			4,264,649			3,915,532			3,914,524
	Noncontrolling Interests
	Common units of the Operating Partnership		87,655			81,917			81,393			78,463			78,413
	Noncontrolling interests in consolidated property partnerships		197,710			195,431			193,467			192,908			190,245
	Total noncontrolling interests		285,365			277,348			274,860			271,371			268,658
	Total equity		5,277,515			4,570,858			4,539,509			4,186,903			4,183,182
	TOTAL LIABILITIES AND EQUITY	$	9,735,147		$	8,900,094		$	8,623,815		$	8,094,721		$	7,883,987

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Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Consolidated Statements of Operations

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

			Three Months Ended March 31,
			2020			2019
	REVENUES
	Rental income (1)	$	218,633	$	199,382
	Other property income		2,695			1,820
	Total revenues		221,328			201,202
	EXPENSES
	Property expenses		38,983			38,149
	Real estate taxes		22,202			18,639
	Ground leases		2,317			1,972
	General and administrative expenses		19,010			23,341
	Leasing costs		1,456			1,757
	Depreciation and amortization		74,370			66,135
	Total expenses		158,338			149,993
	OTHER (EXPENSES) INCOME
	Interest income and other net investment (loss) gain		(3,128)			1,828
	Interest expense		(14,444)			(11,243)
	Total other (expenses) income		(17,572)			(9,415)
	NET INCOME		45,418			41,794
	Net income attributable to noncontrolling common units of the Operating Partnership		(705)			(700)
	Net income attributable to noncontrolling interests in consolidated property partnerships		(4,896)			(4,191)
	Total income attributable to noncontrolling interests		(5,601)			(4,891)
	NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	39,817		$	36,903
	Weighted average common shares outstanding - basic
		106,875			100,901
	Weighted average common shares outstanding - diluted		107,390			101,443
	NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE
	Net income available to common stockholders per share - basic	$	0.37	$	0.36
	Net income available to common stockholders per share - diluted
	$	0.37	$	0.36

________________________

1. Rental income is presented net of reductions in revenue related to the creditworthiness of tenants. For the three months ended March 31, 2020, rental income includes a reduction in revenue of $6.5 million related to the cumulative impact of transitioning oneco-working tenant and two retail tenants to a cash basis of reporting as a result of the COVID-19 pandemic.

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Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Funds From Operations and Funds Available for Distribution

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

			Three Months Ended March 31,
			2020			2019
	FUNDS FROM OPERATIONS: (1)
	Net income available to common stockholders	$	39,817	$	36,903
	Adjustments:
	Net income attributable to noncontrolling common units of the Operating Partnership		705			700
	Net income attributable to noncontrolling interests in consolidated property partnerships		4,896			4,191
	Depreciation and amortization of real estate assets		72,438			64,971
	Funds From Operations attributable to noncontrolling interests in consolidated property partnerships		(7,683)			(6,953)
	Funds From Operations (1)(2)	$	110,173		$	99,812
	Weighted average common shares/units outstanding - basic (3)		110,031			104,062
	Weighted average common shares/units outstanding - diluted (4)		110,546			104,603
	FFO per common share/unit - basic (1)	$	1.00	$	0.96
	FFO per common share/unit - diluted (1)
	$	1.00	$	0.95
	FUNDS AVAILABLE FOR DISTRIBUTION: (1)
	Funds From Operations (1)(2)	$	110,173	$	99,812
	Adjustments:
	Recurring tenant improvements, leasing commissions and capital expenditures		(17,063)			(21,583)
	Amortization of deferred revenue related to tenant-funded tenant improvements (2)(5)		(5,002)			(3,817)
	Net effect of straight-line rents		(14,415)			(16,511)
	Amortization of net below market rents (6)		(2,586)			(2,094)
	Amortization of deferred financing costs and net debt discount/premium		505			135
	Non-cash executive compensation expense (7)		7,159			7,584
	Lease related adjustments, leasing costs and other (8)		3,461			35
	Adjustments attributable to noncontrolling interests in consolidated property partnerships		2,667			2,373
	Funds Available for Distribution (1)	$	84,899		$	65,934

________________________

1. See page 31 for Management Statements on Funds From Operations and Funds Available for Distribution. Reported per common share/unit amounts are attributable to common stockholders, common unitholders and restricted stock unit holders.
2. FFO available to common stockholders and unitholders includes amortization of deferred revenue related totenant-funded tenant improvements of $5.0 million and $3.8 million for the three months ended March 31, 2020 and 2019, respectively. These amounts are adjusted out of FFO in our calculation of FAD.
3. Calculated based on weighted average shares outstanding including participatingshare-based awards and assuming the exchange of all common limited partnership units outstanding.
4. Calculated based on weighted average shares outstanding including participating andnon-participatingshare-based awards, dilutive impact of stock options, and contingently issuable shares and assuming the exchange of all common limited partnership units outstanding.
5. Represents revenue recognized during the period as a result of the amortization of deferred revenue recorded fortenant-funded tenant improvements.
6. Represents thenon-cash adjustment related to the acquisition of buildings with above and/or below market rents.
7. Includesnon-cash amortization of share-based compensation and accrued potential future executive retirement benefits.
8. Includes other cash andnon-cash adjustments attributable to lease-related matters including GAAP revenue recognition timing differences, leasing costs and other.

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Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

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

(unaudited, $ in thousands)

			Three Months Ended March 31,
			2020			2019
	GAAP Net Cash Provided by Operating Activities	$	122,940		$	99,790
	Adjustments:
	Recurring tenant improvements, leasing commissions and capital expenditures		(17,063)			(21,583)
	Depreciation of non-real estate furniture, fixtures and equipment		(1,932)			(1,164)
	Net changes in operating assets and liabilities (1)		(13,582)			(5,962)
	Noncontrolling interests in consolidated property partnerships'share of FFO and FAD		(5,016)			(4,580)
	Cash adjustments related to investing and financing activities		(448)			(567)
	Funds Available for Distribution(2)
	$	84,899		$	65,934

_______________________

1. Primarily includes changes in the following assets and liabilities: marketable securities; current receivables; prepaid expenses and other assets; accounts payable, accrued expenses and other liabilities; and rents received in advance and tenant security deposits.
2. Please refer to page 31 for a Management Statement on Funds Available for Distribution.

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Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Net Operating Income (1)

(unaudited, $ in thousands)

			Three Months Ended March 31,
		2020				2019			% Change
	Operating Revenues:
	Rental income (2)	$	187,015	$	171,882			8.8%
	Tenant reimbursements (2)		31,618			27,500			15.0%
	Other property income		2,695			1,820			48.1%
	Total operating revenues		221,328			201,202			10.0%
	Operating Expenses:
	Property expenses		38,983			38,149			2.2%
	Real estate taxes		22,202			18,639			19.1%
	Ground leases		2,317			1,972			17.5%
	Total operating expenses		63,502			58,760			8.1%
	Net Operating Income	$	157,826		$	142,442			10.8%

________________________

1. Please refer to page 29 for Management Statements on Net Operating Income and page 34 for a reconciliation of GAAP Net Income Available to Common Stockholders to Net Operating Income.
2. Revenue from tenant reimbursements is included in rental income on our consolidated statements of operations.

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First Quarter 2020 Supplemental Financial Report

Same Store Analysis (1)

(unaudited, $ in thousands)

			Three Months Ended March 31,
			2020			2019			% Change
	Total Same Store Portfolio
	Office Portfolio
	Number of properties		92			92
	Square Feet		12,931,083			12,931,083
	Percent of Stabilized Portfolio		90.3%			97.7%
	Average Occupancy		93.7%			93.2%
	Operating Revenues:
	Rental income (2)(3)	$	162,951	$	163,462			(0.3)%
	Tenant reimbursements (2)		23,463			24,979			(6.1)%
	Other property income		2,179			1,711			27.4 %
	Total operating revenues		188,593			190,152			(0.8)%
	Operating Expenses:
	Property expenses		34,757			36,295			(4.2)%
	Real estate taxes		17,246			17,110			0.8 %
	Ground leases		2,109			1,972			6.9 %
	Total operating expenses		54,112			55,377			(2.3)%
	GAAP Net Operating Income	$	134,481		$	134,775			(0.2)%

Same Store Analysis (Cash Basis) (4)

			Three Months Ended March 31,
			2020			2019			% Change
	Total operating revenues	$	183,226		$	167,722			9.2 %
	Total operating expenses		54,129			55,381			(2.3)%
	Cash Net Operating Income	$	129,097		$	112,341			14.9 %

________________________

1. Same Store is defined as all properties owned and included in our stabilized portfolio as of January 1, 2019 and still owned and included in the stabilized portfolio as of March 31, 2020. Same Store includes 100% of consolidated property partnerships as well as the residential tower at Columbia Square.
2. Revenue from tenant reimbursements is included in rental income on our consolidated statements of operations.
3. Rental income is presented net of reductions in revenue related to the creditworthiness of tenants. For the three months ended March 31, 2020, rental income includes a reduction in revenue of $5.9 million related to the cumulative impact of transitioning oneco-working tenant and one retail tenant to a cash basis of reporting as a result of the COVID-19 pandemic. For the three months ended March 31, 2019, rental income includes a recovery of provision for bad debts of $3.1 million.
4. Please refer to page 34 for a reconciliation of GAAP Net Income Available to Common Stockholders to Same Store GAAP Net Operating Income and Same Store Cash Net Operating Income.

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Stabilized Portfolio Occupancy Overview by Region

					Portfolio Breakdown				Occupied at		Leased at
	STABILIZED OFFICE PORTFOLIO (1)		Buildings	YTD NOI %		SF %		Total SF	3/31/2020		12/31/2019 (2)	3/31/2020
	Greater Los Angeles
	Culver City	19		1.7%	1.1%	151,908		100.0 %		100.0 %	100.0 %
	El Segundo	5		4.6%	7.6%	1,093,050		97.5 %		97.6 %	97.8 %
	Hollywood	6		5.6%	5.6%	806,557		98.7 %		98.7 %	99.2 %
	Long Beach	7		2.8%	6.7%	952,766		92.7 %		93.2 %	96.9 %
	West Hollywood	4		1.7%	1.2%	178,699		90.5 %		95.4 %	94.0 %
	West Los Angeles	10		5.6%	5.9%	844,151		86.1 %		90.0 %	88.0 %
	Total Greater Los Angeles		51		22.0%		28.1%	4,027,131		94.0%		95.2%		95.7%
	San Diego County
	Del Mar	15		7.7%	10.1%	1,448,547		89.6 %		92.2 %	95.1 %
	I-15 Corridor	5		1.3%	3.8%	540,892		82.5 %		81.3 %	96.4 %
	Point Loma	1		0.4%	0.8%	107,456		100.0 %		100.0 %	100.0 %
	University Towne Center	1		0.1%	0.3%	47,846		91.4 %		91.4 %	91.4 %
	Total San Diego County		22		9.5%		15.0%		2,144,741		88.3%		89.7%		95.6%
	San Francisco Bay Area
	Menlo Park	7		2.7%	2.6%	378,358		79.2 %		87.1 %	80.2 %
	Mountain View	4		4.0%	3.8%	542,235		100.0 %		100.0 %	100.0 %
	Palo Alto	2		1.4%	1.2%	165,585		100.0 %		100.0 %	100.0 %
	Redwood City	2		3.4%	2.4%	347,269		100.0 %		100.0 %	100.0 %
	San Francisco	11		39.2%	28.7%	4,107,473		93.0 %		93.1 %	99.1 %
	South San Francisco	3		1.3%	1.0%	145,530		100.0 %		100.0 %	100.0 %
	Sunnyvale	4		4.8%	4.6%	663,460		100.0 %		100.0 %	100.0 %
	Total San Francisco Bay Area		33		56.8%		44.3%		6,349,910		94.3%		95.0%		98.2%
	Greater Seattle
	Bellevue	2		5.4%	6.4%	917,027		91.1 %		96.9 %	98.7 %
	Lake Union	6		6.3%	6.2%	884,763		100.0 %		98.6 %	100.0 %
	Total Greater Seattle		8		11.7%		12.6%		1,801,790		95.5%		97.7%		99.3%
	TOTAL STABILIZED OFFICE PORTFOLIO		114		100.0%		100.0%		14,323,572		93.5%		94.6%		97.3%

									Total No. of
	STABILIZED RESIDENTIAL PROPERTY			Submarket			Buildings		Units
	Greater Los Angeles
	1550 N. El Centro Avenue			Hollywood	1	200
			Average Office Occupancy
			Quarter-to-Date
			93.7%
________________________

1. Includes stabilized retail space.
2. Represents occupancy for properties in the stabilized portfolio as of the date presented, including properties sold subsequent to the date presented.

Average Residential Occupancy

Quarter-to-Date

93.5%

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Stabilized Office Portfolio Occupancy Overview by Region, continued

			Submarket		Square Feet		Occupied
Greater Los Angeles, California
	3101-3243 La Cienega Boulevard	Culver City	151,908	100.0%
	2240	E. Imperial Highway	El Segundo	122,870	100.0%
	2250	E. Imperial Highway	El Segundo	298,728	100.0%
	2260	E. Imperial Highway	El Segundo	298,728	100.0%
	909 N. Pacific Coast Highway	El Segundo	244,136	92.3%
	999 N. Pacific Coast Highway	El Segundo	128,588	93.4%
	1500	N. El Centro Avenue	Hollywood	104,504	100.0%
	1525	N. Gower Street	Hollywood	9,610	100.0%
	1575	N. Gower Street	Hollywood	251,245	100.0%
	6115 W. Sunset Boulevard	Hollywood	26,105	100.0%
	6121 W. Sunset Boulevard	Hollywood	91,173	100.0%
	6255 W. Sunset Boulevard	Hollywood	323,920	96.8%
	3750	Kilroy Airport Way	Long Beach	10,718	100.0%
	3760	Kilroy Airport Way	Long Beach	165,278	92.5%
	3780	Kilroy Airport Way	Long Beach	221,452	79.4%
	3800	Kilroy Airport Way	Long Beach	192,476	100.0%
	3840	Kilroy Airport Way	Long Beach	136,026	100.0%
	3880	Kilroy Airport Way	Long Beach	96,923	100.0%
	3900	Kilroy Airport Way	Long Beach	129,893	91.4%
	8560 W. Sunset Boulevard	West Hollywood	71,875	100.0%
	8570 W. Sunset Boulevard	West Hollywood	43,603	95.8%
	8580 W. Sunset Boulevard	West Hollywood	7,126	0.0%
	8590 W. Sunset Boulevard	West Hollywood	56,095	85.6%
	12100 W. Olympic Boulevard	West Los Angeles	152,048	71.6%
	12200 W. Olympic Boulevard	West Los Angeles	150,832	90.2%
	12233 W. Olympic Boulevard	West Los Angeles	151,029	81.0%
	12312 W. Olympic Boulevard	West Los Angeles	76,644	100.0%
	1633	26th Street	West Los Angeles	43,857	34.9%
	2100/2110 Colorado Avenue	West Los Angeles	102,864	100.0%
	3130 Wilshire Boulevard	West Los Angeles	90,074	100.0%
	501 Santa Monica Boulevard	West Los Angeles	76,803	97.8%
	Total Greater Los Angeles			4,027,131		94.0%

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Stabilized Office Portfolio Occupancy Overview by Region, continued

			Submarket		Square Feet		Occupied
San Diego, California
	12225	El Camino Real	Del Mar	58,401	100.0%
	12235	El Camino Real	Del Mar	53,751	88.9%
	12340	El Camino Real	Del Mar	89,272	50.1%
	12390	El Camino Real	Del Mar	70,140	100.0%
	12348	High Bluff Drive	Del Mar	39,193	85.3%
	12770	El Camino Real	Del Mar	73,032	66.1%
	12780	El Camino Real	Del Mar	140,591	100.0%
	12790	El Camino Real	Del Mar	78,836	71.2%
	12400	High Bluff Drive	Del Mar	209,220	100.0%
	3579 Valley Centre Drive	Del Mar	54,960	31.1%
	3611 Valley Centre Drive	Del Mar	129,656	100.0%
	3661 Valley Centre Drive	Del Mar	128,364	100.0%
	3721 Valley Centre Drive	Del Mar	115,193	100.0%
	3811 Valley Centre Drive	Del Mar	112,067	100.0%
	3745 Paseo Place	Del Mar	95,871	90.0%
	13280	Evening Creek Drive South	I-15 Corridor	41,196	100.0%
	13290	Evening Creek Drive South	I-15 Corridor	61,180	100.0%
	13480	Evening Creek Drive North	I-15 Corridor	154,157	100.0%
	13500	Evening Creek Drive North	I-15 Corridor	137,658	43.0%
	13520	Evening Creek Drive North	I-15 Corridor	146,701	89.0%
	2305 Historic Decatur Road	Point Loma	107,456	100.0%
	4690 Executive Drive	University Towne Center	47,846	91.4%
	Total San Diego County			2,144,741		88.3%

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Stabilized Office Portfolio Occupancy Overview by Region, continued

				Submarket		Square Feet		Occupied
San Francisco Bay Area, California
4100	Bohannon Drive	Menlo Park	47,379	100.0%
	4200	Bohannon Drive	Menlo Park	45,451	70.8%
	4300	Bohannon Drive	Menlo Park	63,079	48.8%
	4400	Bohannon Drive	Menlo Park	48,146	31.4%
	4500	Bohannon Drive	Menlo Park	63,078	100.0%
	4600	Bohannon Drive	Menlo Park	48,147	100.0%
	4700	Bohannon Drive	Menlo Park	63,078	100.0%
	1290-1300 Terra Bella Avenue	Mountain View	114,175	100.0%
	331	Fairchild Drive	Mountain View	87,147	100.0%
	680	E. Middlefield Road	Mountain View	170,090	100.0%
	690	E. Middlefield Road	Mountain View	170,823	100.0%
	1701	Page Mill Road	Palo Alto	128,688	100.0%
	3150	Porter Drive	Palo Alto	36,897	100.0%
	900	Jefferson Avenue	Redwood City	228,505	100.0%
	900	Middlefield Road	Redwood City	118,764	100.0%
	100	Hooper Street	San Francisco	394,340	87.6%
	100	First Street	San Francisco	467,095	87.2%
	1800	Owens Street	San Francisco	750,370	99.6%
	303	Second Street	San Francisco	784,658	78.4%
	201 Third Street	San Francisco	346,538	99.2%
	360 Third Street	San Francisco	429,796	100.0%
	250	Brannan Street	San Francisco	100,850	100.0%
	301	Brannan Street	San Francisco	82,834	100.0%
	333	Brannan Street	San Francisco	185,602	100.0%
	345	Brannan Street	San Francisco	110,050	99.7%
	350	Mission Street	San Francisco	455,340	99.7%
	345	Oyster Point Boulevard	South San Francisco	40,410	100.0%
	347	Oyster Point Boulevard	South San Francisco	39,780	100.0%
	349	Oyster Point Boulevard	South San Francisco	65,340	100.0%
	505	Mathilda Avenue	Sunnyvale	212,322	100.0%
	555	Mathilda Avenue	Sunnyvale	212,322	100.0%
	605	Mathilda Avenue	Sunnyvale	162,785	100.0%
	599	Mathilda Avenue	Sunnyvale	76,031	100.0%
	Total San Francisco Bay Area			6,349,910		94.3%

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Stabilized Office Portfolio Occupancy Overview by Region, continued

			Submarket		Square Feet		Occupied
Greater Seattle, Washington
601	108th Avenue NE	Bellevue	488,470	98.3%
	10900 NE 4th Street	Bellevue	428,557	82.8%
	837	N. 34th Street	Lake Union	112,487	100.0%
	701	N. 34th Street	Lake Union	141,860	100.0%
	801	N. 34th Street	Lake Union	169,412	100.0%
	320 Westlake Avenue North	Lake Union	184,644	100.0%
	321 Terry Avenue North	Lake Union	135,755	100.0%
	401 Terry Avenue North	Lake Union	140,605	100.0%
	Total Greater Seattle			1,801,790		95.5%
	TOTAL			14,323,572		93.5%

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First Quarter 2020 Supplemental Financial Report

Information on Leases Commenced (1)

1st & 2nd Generation

2nd Generation

# of Leases (2)

Square Feet (2)

Retention

TI/LC

TI/LC

Changes in

Changes in

Weighted

Per Sq.Ft. /

GAAP

Average Lease

New

Renewal

New

Renewal

Rates

Per Sq.Ft. (3)

Year (3)

Rents

Cash Rents

Term (Mo.)

Quarter to Date

10

9

47,926

90,067

27.0%

$ 37.57

$

5.01

31.1%

21.0%

90

Information on Leases Executed (1)

1st & 2nd Generation

2nd Generation

# of Leases (4)

Square Feet (4)

TI/LC

TI/LC

Changes in

Changes in

Weighted

Per Sq.Ft. /

Average Lease

New

Renewal

New

Renewal

Per Sq.Ft. (3)

Year (3)

GAAP Rents

Cash Rents

Term (Mo.)

Quarter to Date (5)

7

9

131,661

90,067

$

60.11

$

8.29

57.5%

45.3%

87

________________________

1. Includes 100% of consolidated property partnerships.
2. Represents leasing activity for leases that commenced at properties in the stabilized portfolio during the three months ended March 31, 2020, including first and second generation space, net ofmonth-to-month leases.
3. Includes tenant improvement costs andthird-party leasing commissions. Amounts exclude tenant-funded tenant improvements and indirect leasing costs.
4. Represents leasing activity for leases signed at properties in the stabilized portfolio during the three months ended March 31, 2020, including first and second generation space, net ofmonth-to-month leases. Excludes leasing on new construction.
5. During the three months ended March 31, 2020, 6 new leases totaling 125,420 square feet were signed but not commenced as of March 31, 2020.

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Stabilized Portfolio Capital Expenditures

($ in thousands)

			Q1 2020
1st Generation (Nonrecurring) Capital Expenditures:(1)
	Capital Improvements	$	621
	Tenant Improvements & Leasing Commissions (2)		4,307
	Total	$	4,928
			Q1 2020
	2nd Generation (Recurring) Capital Expenditures:(1)
	Capital Improvements	$	2,976
	Tenant Improvements & Leasing Commissions (2)		14,087
	Total	$	17,063

________________________

1. Includes 100% of capital expenditures of consolidated property partnerships.
2. Includes tenant improvement costs andthird-party leasing commissions. Amounts exclude tenant-funded tenant improvements.

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Stabilized Portfolio Lease Expiration Summary Schedule

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

			# of Expiring			Total Square		% of Total			Annualized		% of Total		Annualized Rent
	Year of Expiration								Annualized
		Leases			Feet		Leased Sq. Ft.			Base Rent (1)		Base Rent			per Sq. Ft.
	Remaining 2020 (2)			53	677,934	5.3%	$	29,929	4.3%		$	44.15
	2021 (2)			81	842,815	6.4%			36,455	5.3%			43.25
	2022			62	749,300	5.8%			32,462	4.6%			43.32
	2023			77	1,233,952	9.4%			65,432	9.4%			53.03
	2024			60	952,945	7.2%			46,791	6.7%			49.10
	2025			51	634,142	4.8%			30,781	4.4%			48.54
	2026			34	1,485,620	11.3%			65,703	9.4%			44.23
	2027			28	1,227,633	9.3%			50,287	7.2%			40.96
	2028			21	924,891	7.0%			57,805	8.3%			62.50
	2029			26	775,552	5.9%			44,468	6.4%			57.34
	2030 and beyond			47	3,636,258	27.6%			238,262	34.0%			65.52
	Total (3)			540		13,141,042		100.0%		$	698,375		100.0%		$	53.14

________________________

1. Includes 100% of annualized base rent of consolidated property partnerships.
2. Adjusting for leasing transactions executed as of March 31, 2020 but not yet commenced, the 2020 and 2021 expirations would be reduced by 173,477 and 173,267 square feet, respectively.
3. For leases that have been renewed early with existing tenants, the expiration date and annualized base rent information presented takes into consideration the renewed lease terms. Excludes leases not commenced as of March 31, 2020, space leased undermonth-to-month leases, storage leases, vacant space and future lease renewal options not executed as of March 31, 2020.

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Stabilized Portfolio Lease Expiration Schedule by Region

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

				# of		Total		% of Total			Annualized		% of Total		Annualized Rent
Year		Region							Annualized
		Expiring Leases		Square Feet		Leased Sq. Ft.			Base Rent (1)		Base Rent			per Sq. Ft.
	Greater Los Angeles	30	349,319	2.7%	$	13,724	2.0%	$	39.29
2020		San Diego	12	151,138	1.2%			6,345	0.9%			41.98
	San Francisco Bay Area	10	155,043	1.2%			9,130	1.3%			58.89
		Greater Seattle	1	22,434	0.2%			730	0.1%			32.54
		Total		53		677,934		5.3%		$	29,929		4.3%		$	44.15
		Greater Los Angeles	47	285,279	2.2%	$	11,630	1.7%	$	40.77
2021		San Diego	14	289,090	2.2%			11,635	1.7%			40.25
	San Francisco Bay Area	11	239,093	1.8%			12,245	1.8%			51.21
		Greater Seattle	9	29,353	0.2%			945	0.1%			32.19
		Total		81		842,815		6.4%		$	36,455		5.3%		$	43.25
		Greater Los Angeles	43	364,184	2.8%	$	16,471	2.4%	$	45.23
2022		San Diego	8	204,237	1.6%			6,991	1.0%			34.23
	San Francisco Bay Area	6	115,111	0.9%			6,558	0.9%			56.97
		Greater Seattle	5	65,768	0.5%			2,442	0.3%			37.13
		Total		62		749,300		5.8%		$	32,462		4.6%		$	43.32
		Greater Los Angeles	37	356,052	2.7%	$	18,874	2.7%	$	53.01
2023		San Diego	13	195,866	1.5%			8,163	1.2%			41.68
	San Francisco Bay Area	21	588,422	4.5%			35,145	5.0%			59.73
		Greater Seattle	6	93,612	0.7%			3,250	0.5%			34.72
		Total		77		1,233,952		9.4%		$	65,432		9.4%		$	53.03
		Greater Los Angeles	31	439,031	3.3%	$	19,711	2.8%	$	44.90
2024		San Diego	10	68,501	0.5%			3,522	0.5%			51.42
	San Francisco Bay Area	11	239,751	1.8%			15,807	2.3%			65.93
		Greater Seattle	8	205,662	1.6%			7,751	1.1%			37.69
		Total		60		952,945		7.2%		$	46,791		6.7%		$	49.10
		Greater Los Angeles	56	1,831,601	13.9%	$	80,073	11.4%	$	43.72
2025		San Diego	63	957,224	7.3%			46,355	6.6%			48.43
and		San Francisco Bay Area	53	4,602,672	34.9%			308,393	44.2%			67.00
Beyond
	Greater Seattle	35	1,292,599	9.8%			52,485	7.5%			40.60
		Total		207		8,684,096		65.9%		$	487,306		69.7%		$	56.11

________________________

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

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Stabilized Portfolio Quarterly Lease Expirations for 2020 and 2021

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

		# of Expiring			Total Square		% of Total			Annualized		% of Total		Annualized Rent
								Annualized
		Leases			Feet		Leased Sq. Ft.			Base Rent (1)		Base Rent			per Sq. Ft.
	2020:
	Q2 2020	12	147,536	1.1%	$	7,029	1.0%	$	47.64
	Q3 2020	18	176,222	1.4%			6,129	0.9%			34.78
	Q4 2020		23	354,176	2.8%			16,771	2.4%			47.35
	Total 2020 (2)		53		677,934		5.3%		$	29,929		4.3%		$	44.15
	2021:
	Q1 2021	19	176,993	1.3%	$	7,052	1.0%	$	39.84
	Q2 2021	20	107,172	0.8%			4,038	0.7%			37.68
	Q3 2021	21	388,069	3.0%			18,950	2.7%			48.83
	Q4 2021	21	170,581	1.3%			6,415	0.9%			37.61
	Total 2021 (2)		81	842,815	6.4%	$	36,455	5.3%	$	43.25

________________________

1. Includes 100% of annualized base rent of consolidated property partnerships.
2. Adjusting for leasing transactions executed as of March 31, 2020 but not yet commenced, the 2020 and 2021 expirations would be reduced by 173,477 and 173,267 square feet, respectively.

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Top Fifteen Tenants (1)

($ in thousands)

					Annualized Base		Rentable		Percentage of		Percentage of
	Tenant Name	Region				Total Annualized Base		Total Rentable
		Rental Revenue (2)		Square Feet		Rental Revenue		Square Feet
	Dropbox, Inc.		San Francisco Bay Area		$	55,998		738,081		8.0%		5.2%
	GM Cruise, LLC	San Francisco Bay Area			36,337	374,618	5.2%	2.6%
	LinkedIn Corporation / Microsoft Corporation	San Francisco Bay Area			29,752	663,460	4.3%	4.6%
	Adobe Systems, Inc.	San Francisco Bay Area / Greater Seattle			27,897	513,111	4.0%	3.6%
	salesforce.com, inc.	San Francisco Bay Area			24,076	451,763	3.5%	3.2%
	DIRECTV, LLC	Greater Los Angeles			23,152	684,411	3.3%	4.8%
	Box, Inc.	San Francisco Bay Area			22,441	371,792	3.2%	2.6%
	Okta, Inc.	San Francisco Bay Area			17,122	207,066	2.5%	1.4%
	Riot Games, Inc.	Greater Los Angeles			15,514	251,509	2.2%	1.8%
	Synopsys, Inc.	San Francisco Bay Area			15,492	340,913	2.2%	2.4%
	Viacom International, Inc.	Greater Los Angeles			13,718	211,343	2.0%	1.5%
	DoorDash, Inc.	San Francisco Bay Area			13,531	135,137	1.9%	0.9%
	Amazon.com	Greater Seattle			12,397	277,399	1.8%	1.9%
	Nektar Therapeutics, Inc.	San Francisco Bay Area			12,297	135,350	1.8%	0.9%
	Concur Technologies	Greater Seattle			10,643		288,322		1.5%		2.0%
	Total Top Fifteen Tenants		$	330,367	5,644,275	47.4%	39.4%

________________________

1. The information presented is as of March 31, 2020.
2. Includes 100% of annualized base rental revenues of consolidated property partnerships.

21

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Consolidated Ventures (Noncontrolling Property Partnerships)

	Property (1)		Venture Partner		Submarket		Rentable Square Feet		KRC Ownership %
	100	First Street, San Francisco, CA		Norges Bank Real Estate Management		San Francisco	467,095		56%
	303	Second Street, San Francisco, CA		Norges Bank Real Estate Management		San Francisco	784,658	56%
	900	Jefferson Avenue and 900 Middlefield Road, Redwood City, CA (2)		Local developer		Redwood City	347,269	93%

____________________

1. For breakout of Net Operating Income by partnership, refer to page 34, Reconciliation of Net Income Available to Common Stockholders to Same Store Net Operating Income.
2. Reflects the KRC ownership percentage at time of agreement. Actual percentage may vary depending on cash flows or promote structure.

22

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Stabilized Office Development Projects and Completed Residential Development Projects

($ in millions)

STABILIZED OFFICE AND RETAIL DEVELOPMENT PROJECTS(1)	Location		Start Date		Stabilization		Total Estimated		Rentable		Total Project
		Date (2)		Investment		Square Feet		% Occupied

1st Quarter

	The Exchange on 16th	San Francisco		2Q 2015		1Q 2020	$	585.0	750,370	100%
	One Paseo - Retail	Del Mar		4Q 2016		1Q 2020		100.0	95,871	90%
	TOTAL:							$	685.0	846,241	98%
	COMPLETED RESIDENTIAL DEVELOPMENT PROJECTS NOT YET STABILIZED	Location		Start Date		Completion		Total Estimated		Number of		% Leased
			Date		Investment		Units
	One Paseo - Residential Phase I	Del Mar		4Q 2016		3Q 2019	$	145.0	237	70%
	One Paseo - Residential Phase II	Del Mar		4Q 2016		1Q 2020		145.0	225	17%
	TOTAL:							$	290.0		462		44%
____________________

1. Our stabilized office portfolio includes stabilized retail space.
2. For office and retail, represents the earlier of anticipated 95% occupancy date or one year from substantial completion of base building components.

23

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

In-Process Development

($ in millions)

Estimated

Total Cash

Construction

Estimated

Total Estimated

Costs Incurred

TENANT IMPROVEMENT(1)

Location

Rentable Square

as of

% Leased

Start Date

Stabilization Date (2)

Feet

Investment

3/31/2020 (3)

Office

San Diego County

One Paseo - Office

Del Mar

4Q 2018

2Q 2021

285,000

$

205.0

$

164.4

91%

Greater Seattle

333 Dexter

South Lake Union

2Q 2017

3Q 2022

635,000

410.0

285.1

100%

Greater Los Angeles

Netflix // On Vine - Office

Hollywood

1Q 2018

1Q 2021

355,000

300.0

210.8

100%

TOTAL:

1,275,000

$

915.0

$

660.3

98%

Estimated

Total Cash

Construction

Estimated

Total Estimated

Costs Incurred

Office %

UNDER CONSTRUCTION

Rentable Square

as of

Location

Start Date

Stabilization Date (2)

Feet

Investment

3/31/2020 (3)

Leased

Office / Life Science

San Francisco Bay Area

Kilroy Oyster Point - Phase I

South San Francisco

1Q 2019

4Q 2021

656,000

$

570.0

$

198.7

100%

San Diego County

2100 Kettner

Little Italy

3Q 2019

1Q 2022

200,000

140.0

48.9

-%

9455 Towne Centre Drive

University Towne Center

1Q 2019

1Q 2021

160,000

110.0

63.3

100%

Residential

Greater Los Angeles

Living // On Vine - Residential

Hollywood

4Q 2018

1Q 2021

193 Resi Units

195.0

141.1

N/A

San Diego County

One Paseo - Residential Phase III

Del Mar

4Q 2016

2Q 2020

146 Resi Units

95.0

93.1

N/A

TOTAL:

$

1,110.0

$

545.1

80%

________________________

1. Represents projects that have reached cold shell condition and are ready for tenant improvements, which may require additional major base building construction before being placed in service.
2. For office and retail, represents the earlier of anticipated 95% occupancy date or one year from substantial completion of base building components. Formulti-phase projects, interest and carry cost capitalization may cease and recommence driven by various factors, including tenant improvement construction and other tenant related timing or project scope. The timing of completion of our projects may be impacted by factors outside of our control, including government restrictions and/or social distancing requirements on construction projects due to the COVID-19 pandemic.
3. Represents costs incurred as of March 31, 2020, excluding accrued liabilities recorded in accordance with GAAP. Upon adoption of ASC 842 "Leases" effective January 1, 2019, also excludes leasing overhead.

24

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Future Development Pipeline

($ in millions)

				Approx. Developable		Total Cash Costs
	FUTURE DEVELOPMENT PIPELINE	Location			Incurred as of
		Square Feet (1)	3/31/2020	(2)
	San Diego County
	Santa Fe Summit - Phases II and III	56 Corridor	600,000 - 650,000	$	79.4
	1335 Broadway & 901 Park Boulevard	East Village		TBD			45.7
	San Francisco Bay Area
	Kilroy Oyster Point - Phases II - IV	South San Francisco	1,750,000 - 1,900,000			320.0
	Flower Mart	SOMA	2,300,000			376.3
	Greater Seattle
	Seattle CBD Project	Seattle CBD		TBD			131.4
	TOTAL:					$	952.8

________________________

1. The developable square feet and scope of projects could change materially from estimated data provided due to one or more of the following: any significant changes in the economy, market conditions, our markets, tenant requirements and demands, construction costs, new supply, regulatory and entitlement processes or project design.
2. Represents costs incurred as of March 31, 2020, excluding accrued liabilities recorded in accordance with GAAP.

25

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Capital Structure

As of March 31, 2020

($ in thousands)

		Shares/Units		Aggregate Principal		% of Total
		$	Amount or		Market
		March 31, 2020	Value Equivalent		Capitalization
	DEBT: (1)
	Unsecured Line of Credit		$	380,000	3.4%
	Unsecured Term Loan Facility				150,000	1.3%
	Unsecured Senior Notes due 2023				300,000	2.7%
	Unsecured Senior Notes due 2024				425,000	3.8%
	Unsecured Senior Notes due 2025				400,000	3.6%
	Unsecured Senior Notes Series A & B due 2026				250,000	2.2%
	Unsecured Senior Notes due 2028				400,000	3.6%
	Unsecured Senior Notes due 2029				400,000	3.6%
	Unsecured Senior Notes Series A & B due 2027 & 2029				250,000	2.2%
	Unsecured Senior Notes due 2030				500,000	4.5%
	Secured Debt				258,236	2.3%
	Total Debt		$	3,713,236	33.2%
	EQUITY AND NONCONTROLLING INTEREST IN THE OPERATING PARTNERSHIP: (2)
	Common limited partnership units outstanding (3)	2,021,287	$	128,756	1.2%
	Shares of common stock outstanding	115,067,924			7,329,827	65.6%
	Total Equity and Noncontrolling Interests in the Operating Partnership			$	7,458,583	66.8%
	TOTAL MARKET CAPITALIZATION			$	11,171,819		100.0%

________________________

1. Represents the gross aggregate principal amount due at maturity before the effect of unamortized deferred financing costs and premiums and discounts. Excludes $350.0 million of 4.27% unsecured senior notes due 2031 the Operating Partnership issued on April 28, 2020 in connection with a private placement offering.
2. Value based on closing share price of $63.70 as of March 31, 2020.
3. Includes common units of the Operating Partnership not owned by the Company; does not include noncontrolling interests in consolidated property partnerships.

26

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Debt Analysis

As of March 31, 2020

TOTAL DEBT COMPOSITION

		Percent of	Weighted Average
		Total Debt	Interest Rate		Years to Maturity
	Secured vs. Unsecured Debt
	Unsecured Debt	93.0%		3.6%	6.4
	Secured Debt	7.0%		3.9%	6.9
	Floating vs. Fixed-Rate Debt
	Floating-Rate Debt	14.3%		1.9%	2.3
	Fixed-Rate Debt	85.7%		3.9%	7.1
	Stated Interest Rate			3.6%	6.4
	GAAP Effective Rate			3.6%
	GAAP Effective Rate Including Debt Issuance Costs			3.8%

KEY DEBT COVENANTS

			Covenant		Actual Performance
				as of March 31, 2020
	Unsecured Credit and Term Loan Facility and Private Placement Notes (as defined in the Credit
	Agreements):
	Total debt to total asset value	less than 60%	29%
	Fixed charge coverage ratio	greater than 1.5x		3.4x
	Unsecured debt ratio	greater than 1.67x		3.48x
	Unencumbered asset pool debt service coverage	greater than 1.75x		4.02x
	Unsecured Senior Notes due 2023, 2024, 2025, 2028, 2029 and 2030 (as defined in the
	Indentures):
	Total debt to total asset value	less than 60%	34%
	Interest coverage	greater than 1.5x		10.4x
	Secured debt to total asset value	less than 40%	2%
	Unencumbered asset pool value to unsecured debt	greater than 150%	304%

27

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Debt Analysis

($ in thousands)

DEBT MATURITY SCHEDULE

	Floating/		Stated		Maturity	2020			2021			2022			2023			2024			After 2024			Total (1)
	Fixed Rate		Rate		Date
	Unsecured Debt:
	Floating	1.85%	7/31/2022							$	380,000										$	380,000
	Floating	2.03%	7/31/2022									150,000												150,000
	Fixed	3.80%	1/15/2023												300,000									300,000
	Fixed	3.45%	12/15/2024															425,000						425,000
	Fixed	4.38%	10/1/2025																		400,000			400,000
	Fixed	4.30%	7/18/2026																		50,000			50,000
	Fixed	4.35%	10/18/2026																		200,000			200,000
	Fixed	3.35%	2/17/2027																		175,000			175,000
	Fixed	4.75%	12/15/2028																		400,000			400,000
	Fixed	3.45%	2/17/2029																		75,000			75,000
	Fixed	4.25%	8/15/2029																		400,000			400,000
	Fixed	3.05%	2/15/2030																		500,000			500,000
	Total unsecured debt
	3.59%					-			-			530,000			300,000			425,000			2,200,000			3,455,000
	Secured Debt:
	Fixed	3.57%	12/1/2026			2,428			3,341			3,462			3,587			3,718			152,668			169,204
	Fixed	4.48%	7/1/2027			1,443			2,001			2,092			2,188			2,288			79,020			89,032
	Total secured debt
	3.88%					3,871			5,342			5,554			5,775			6,006			231,688			258,236
	Total		3.61%		$	3,871		$	5,342		$	535,554		$	305,775		$	431,006		$	2,431,688		$	3,713,236
________________________

1. Represents the gross aggregate principal amount due at maturity before the effect of unamortized deferred financing costs and premiums and discounts. Excludes $350.0 million of 4.27% unsecured senior notes due 2031 the Operating Partnership issued on April 28, 2020 in connection with a private placement offering.

28

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Management Statements on Non-GAAP Supplemental Measures

Included in this section are management's statements regarding certain non-GAAP financial measures provided in this supplemental financial report and, with respect to Funds From Operations available to common stockholders and common unitholders ("FFO"), in the Company's earnings release on April 29, 2020 and the reasons why management believes that these measures provide useful information to investors about the Company's financial condition and results of operations.

Net Operating Income:

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

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

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

Same Store Net Operating Income:

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

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

29

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Management Statements on Non-GAAP Supplemental Measures, continued

Same Store Cash Net Operating Income:

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

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

EBITDA, as adjusted:

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

30

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Management Statements on Non-GAAP Supplemental Measures, continued

Funds From Operations:

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

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

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

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

Funds Available for Distribution:

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

31

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Definitions Included in Supplemental

Annualized Base Rent:

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

Change in GAAP/Cash Rents (Leases Commenced):

Calculated as the change between GAAP/cash rents for new/renewed leases and the expiring GAAP/cash rents for the same space. Excludes leases for which the space was vacant longer than one year, or vacant when the property was acquired by the Company.

Change in GAAP/Cash Rents (Leases Executed):

Calculated as the change between GAAP/cash rents for signed leases and the expiring GAAP/cash rents for the same space. Excludes leases for which the space was vacant longer than one year, or vacant when the property was acquired by the Company.

Estimated Stabilization Date (Development):

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

FAD Payout Ratio:

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

First Generation Capital Expenditures:

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

Fixed Charge Coverage Ratio:

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

FFO Payout Ratio:

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

32

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

Definitions Included in Supplemental, continued

GAAP Effective Rate:

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

Interest Coverage Ratio:

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

Net Effect of Straight-Line Rents:

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

Net Operating Income Margins:

Calculated as Net Operating Income divided by total revenues.

Retention Rates (Leases Commenced):

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

Same Store Portfolio:

Our Same Store portfolio includes all of our properties owned and included in our stabilized portfolio for two comparable reporting periods, i.e., owned and included in our stabilized portfolio as of January 1, 2019 and still owned and included in the stabilized portfolio as of March 31, 2020. It does not include undeveloped land, development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, completed residential developments not yet stabilized and properties held-for-sale. We define redevelopment properties as those projects for which we expect to spend significant development and construction costs on existing or acquired buildings pursuant to a formal plan, the intended result of which is a higher economic return on the property.

Stated Interest Rate:

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

Tenant Improvement Phase:

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

33

Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

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

(unaudited, $ in thousands)

			Three Months Ended March 31,
			2020			2019
	Net Income Available to Common Stockholders	$	39,817		$	36,903
	Net income attributable to noncontrolling common units of the Operating Partnership		705			700
	Net income attributable to noncontrolling interests in consolidated property partnerships		4,896			4,191
	Net Income		45,418			41,794
	Adjustments:
	General and administrative expenses		19,010			23,341
	Leasing costs		1,456			1,757
	Depreciation and amortization		74,370			66,135
	Interest income and other net investment loss (gain)		3,128			(1,828)
	Interest expense		14,444			11,243
	Net Operating Income, as defined (1)		157,826			142,442
	Wholly-Owned Properties		136,316			122,834
	Consolidated property partnerships: (2)
	100 First Street (3)		5,460			6,015
	303 Second Street (3)		10,261			7,798
	Crossing/900 (4)		5,789			5,795
	Net Operating Income, as defined (1)		157,826			142,442
	Non-Same Store GAAP Net Operating Income (5)		(23,345)			(7,667)
	Same Store GAAP Net Operating Income		134,481			134,775
	GAAP to Cash Adjustments:
	GAAP Operating Revenues Adjustments, net (6)		(5,367)			(22,430)
	GAAP Operating Expenses Adjustments, net (7)		(17)			(4)
	Same Store Cash Net Operating Income	$	129,097		$	112,341

________________________

1. Please refer to pages29-30 for Management Statements on Net Operating Income, Same Store Net Operating Income and Same Store Cash Net Operating Income.
2. Reflects GAAP Net Operating Income for all periods presented.
3. For all periods presented, an unrelated third party entity owned approximately 44% common equity interests in two properties located at 100 First Street and 303 Second Street in San Francisco, CA.
4. For all periods presented, an unrelated third party entity owned an approximate 7% common equity interest in two properties located at 900 Jefferson Avenue and 900 Middlefield Road in Redwood City, CA.
5. Includes the results of one office property disposed of during the second quarter of 2019, one property disposed of during the fourth quarter or 2019, one office property we acquired in the third quarter of 2019, our completed residential development that is not yet stabilized and ourin-process and future development projects.
6. Includes the net effect ofstraight-line rents, amortization of deferred revenue related to tenant-funded tenant improvements and amortization of above and below market lease intangibles.
7. Includes the amortization of above and below market lease intangibles for ground leases and the provision for bad debts.

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Kilroy Realty Corporation

First Quarter 2020 Supplemental Financial Report

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

(unaudited, $ in thousands)

			Three Months Ended March 31,
			2020			2019
	Net Income Available to Common Stockholders	$	39,817		$	36,903
	Interest expense		14,444			11,243
	Depreciation and amortization		74,370			66,135
	Net income attributable to noncontrolling common units of the Operating Partnership		705			700
	Net income attributable to noncontrolling interests in consolidated property partnerships		4,896			4,191
	EBITDA, as adjusted (1)	$	134,232		$	119,172

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1. Please refer to page 30 for a Management Statement on EBITDA, as adjusted. The Company's calculation of EBITDA, as adjusted, is the same as EBITDAre, as defined by NAREIT, as the Company does not have any unconsolidated joint ventures.

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