Kilroy Realty : Fourth Quarter 2021

Q4 2021 Supplemental Financial Report

Table of Contents
	Page
Corporate Data and Financial Highlights
Company Background	1
Executive Summary	2
Financial Highlights	3
Market Capitalization and Common Stock Data	4
Net Income Available to Common Stockholders / FFO Guidance and Outlook	5
Consolidated Balance Sheets	6
Consolidated Statements of Operations	7
Funds From Operations and Funds Available for Distribution	8-9
Net Operating Income	10
Portfolio Data
Same Store Analysis	12
Stabilized Portfolio Occupancy Overview by Region	13-17
Information on Leases Commenced & Leases Executed	18
Stabilized Portfolio Capital Expenditures	19
Stabilized Portfolio Lease Expirations	20-21
Top Fifteen Tenants	22
2021 Operating Property Acquisitions	23
2021 Operating Property Dispositions	24
Consolidated Ventures (Noncontrolling Property Partnerships)	25
Development
Stabilized Office/Life Science Development Projects and Completed Residential Development Projects	27
In-Process Development	28
In-Process and Committed Redevelopment	29
Future Development Pipeline	30
Debt and Capitalization Data
Capital Structure	32
Debt Analysis	33
Non-GAAP Supplemental Measures	35-37
Definitions & Reconciliations	39-42

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, 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; 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 annual report on Form 10-K for the year ended December 31, 2020, 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.

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Corporate Data and Financial Highlights

• Company Background
• Executive Summary
• Financial Highlights
• Market Capitalization and Common Stock Data
• Net Income Available to Common Stockholders / FFO Guidance and Outlook
• Consolidated Balance Sheets
• Consolidated Statements of Operations
• Funds From Operations and Funds Available for Distribution
• Net Operating Income

Q4 2021 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 a leading U.S. landlord and developer. The Company has over seven decades of experience developing, acquiring and managing office, life science and mixed-use real estate assets. At December 31, 2021, the Company's stabilized portfolio totaled approximately 15.5 million square feet of primarily office and life science space that was 91.9% occupied and 93.9% leased located in the coastal regions of Los Angeles, San Diego, the San Francisco Bay Area and Greater Seattle and 1,001 residential units in the Los Angeles and San Diego regions. The Company also recently acquired a development project in Austin, Texas.

Board of Directors			Executive and Senior Management Team		Investor Relations
John Kilroy	Chairman		John Kilroy	Chief Executive Officer		12200 W. Olympic Blvd., Suite 200
Edward F. Brennan, PhD	Lead Independent		Tyler H. Rose	President		Los Angeles, CA 90064
Jolie Hunt			Robert Paratte	Executive VP, Leasing and Business Development	[phone]
			Web: www.kilroyrealty.com
Scott S. Ingraham			Heidi R. Roth	Executive VP, Chief Administrative Officer		E-mail: [e-mail]
Louisa G. Ritter			Justin W. Smart	Executive VP, Development and Construction Services
Gary R. Stevenson			Michelle Ngo	Senior VP, Chief Financial Officer and Treasurer		Bill Hutcheson
Peter B. Stoneberg			John Osmond	Senior VP, Head of Asset Management		Senior VP, Investor Relations & Capital
			Eliott Trencher	Senior VP, Chief Investment Officer		Markets
			Merryl Werber	Senior VP, Chief Accounting Officer and Controller

Equity Research Coverage

BofA Securities		Jefferies LLC	[phone]
James Feldman	[phone]	Peter Abramowitz
BMO Capital Markets Corp.		J.P. Morgan
John P. Kim	[phone]	Anthony Paolone	[phone]
BTIG	[phone]	KeyBanc Capital Markets	[phone]
Thomas Catherwood	Craig Mailman
Citigroup Investment Research	[phone]	RBC Capital Markets
Emmanuel Korchman	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	[phone]	Wells Fargo	[phone]
Caitlin Burrows	Blaine Heck
Green Street Advisors	[phone]	Wolfe Research	[phone]
Daniel Ismail	Andrew Rosivach

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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Q4 2021 Supplemental Financial Report

Executive Summary

Quarterly Financial Highlights

• Net income available to common stockholders per share of $0.40, including an $0.11 per share charge for the early extinguishment of debt, inclusive of additional interest expense, related to the redemption of the 3.800% unsecured senior notes due January 2023
• FFO per share of $1.05, including the $0.11 per share charge noted above
• Revenues of $261.1 million
• Same Store NOI increased 10.5% compared to the prior year
• Same Store Cash NOI increased 9.8% compared to the prior year

Quarterly Operating Highlights

• Stabilized portfolio was 91.9% occupied and 93.9% leased at quarter-end
• 672,761 square feet of leases commenced in the stabilized portfolio
• 312,251 square feet of leases executed in the stabilized portfolio
• • Includes an eight-year lease executed with a major media company for 80,000 square feet in Los Angeles executed in November
  • GAAP rents increased approximately 20.2% from prior levels
  • Cash rents increased approximately 6.9% from prior levels

Capital Markets Highlights

• In October, completed a public offering of $450.0 million of 12-year senior unsecured green bonds at 2.650% due November 2033
• In October, completed the early redemption of all $300.0 million of 3.800% unsecured senior notes due January 2023 for a price of approximately $313.4 million, including make-whole redemption fees and other related costs
• As of the date of this report, approximately $1.4 billion of total liquidity comprised of $290.0 million of cash and cash equivalents and full availability under the $1.1 billion unsecured revolving credit facility

Strategic Highlights

• During the quarter, commenced GAAP revenue recognition on 100% of Kilroy Oyster Point - Phase 1, a 660,579 square foot office and life science campus in South San Francisco that is 100% leased to two tenants, Cytokinetics and Stripe
• In December, commenced construction on the life science redevelopment of 12340 El Camino Real in the Del Mar submarket of San Diego in connection with an executed lease for the 96,000 square foot building
• In December, completed the sale of Sabre Springs Corporate Center, a two- building, 102,376 square foot office campus in the I-15 Corridor of San Diego for gross proceeds of $37.0 million

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Note: Definitions for commonly used terms in this Supplemental Financial Report are on pages 39-40 "Definitions Included in Supplemental."

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