Slides
Page 1
Kilroy Realty Supplemental Financial Report Q3 2026 Kilroy Oyster Point, South San Francisco, CA
Page 2
KILROY REALTY CORPORATION REPORTS THIRD QUARTER FINANCIAL AND OPERATIONAL RESULTS --------------- LOS ANGELES, October 22, 2026 - Kilroy Realty Corporation (NYSE: KRC) (“Kilroy” or the “Company”) today reported financial and operational results for the third quarter ended September 30, 2026. “Momentum in our West Coast markets continued to accelerate in the third quarter, with over 800,000 square feet of long-term leases signed, representing one of the Company’s highest quarterly leasing volumes since 2019,” said Angela Aman, Chief Executive Officer. “The breadth of activity was particularly notable, as we recorded sequential leased occupancy gains across all five of our regions and strong re-leasing spreads, driven by activity from a wide variety of users and industries. Looking ahead, our high-quality portfolio, solid balance sheet, and nimble approach position us well to capitalize on the real-time fundamental improvements we are seeing across our regions.” Financial Results • Revenues of $271.6 million for the quarter ended September 30, 2026, as compared to $279.7 million for the quarter ended September 30, 2025 • Net income available to common stockholders of $15.5 million, or $0.13 per diluted share, for the quarter ended September 30, 2026, as compared to $156.2 million, or $1.31 per diluted share, for the quarter ended September 30, 2025 • Funds from operations (“FFO”) of $104.6 million, or $0.88 per diluted share, for the quarter ended September 30, 2026 , as compared to $130.6 million, or $1.08 per diluted share, for the quarter ended September 30, 2025 Leasing and Occupancy • Stabilized Portfolio was 76.9% occupied and 83.0% leased at September 30, 2026 , representing 610 basis points of leases signed but not yet commenced ◦ Excluding Kilroy Oyster Point Phase 2 (“KOP 2”), the Stabilized Portfolio was 80.7% occupied and 84.8% leased at September 30, 2026 , representing 410 basis points of leases signed but not yet commenced • During the quarter, signed approximately 815,000 square feet of leases ◦ Leasing activity was comprised of 345,000 square feet of new leasing on previously vacant space, 127,000 square feet of new leasing on currently occupied space, and 343,000 square feet of renewal leasing ▪ Renewal leasing included a 12-year, approximately 243,000 square-foot renewal at Crossing 900 with Box, Inc., a leading content management company ▪ Leasing activity during the quarter included approximately 12,000 square feet of short-term leasing • GAAP and cash rents on leases signed during the quarter increased 30.6% and 9.7%, respectively, from prior levels on Second Generation leasing, excluding short-term leasing ◦ Excluding leases signed on space vacant for more than 12 months, GAAP and cash rents on leases signed during the quarter increased 37.9% and 13.9%, respectively Land Site Under Contract • In August, entered into an agreement, subject to a non-refundable deposit, to sell the land at Kilroy East Village in San Diego for $19.5 million in gross sales proceeds. The transaction is anticipated to close during the fourth quarter Balance Sheet / Liquidity • In July, repaid the outstanding $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026, at par Where Innovation Works i
Page 3
Dividend • The Board of Directors declared and paid a regular quarterly cash dividend on its common stock of $0.54 per share, equivalent to an annual rate of $2.16 per share. The dividend was paid on October 14, 2026 to stockholders of record on September 30, 2026 (the ex-dividend date) Where Innovation Works ii
Page 4
Net Income Available to Common Stockholders / FFO Guidance The Company is updating Nareit-defined FFO per share guidance for the full year 2026 to $3.55 to $3.59 per diluted share, from the previous range of $3.49 to $3.63. The table below reflects key assumptions for 2026 guidance. Key Assumptions July 2026 Assumptions Current Assumptions Average full year occupancy 76.50% to 78.00% 77.00% to 77.50% Average full year occupancy excluding KOP 2 80.50% to 81.50% 80.75% to 81.25% Same Property Cash Net Operating Income (“NOI”) growth (1) 0.25% to 1.25% 0.75% to 1.00% NOI from Development Properties (2) $(22.5) to $(24.0) million +/- $(21.0) million Non-Cash GAAP NOI adjustments (1) (3) $13.0 to $15.0 million $13.0 to $14.0 million GAAP lease termination fee income $3.0 to $4.5 million $1.1 to $1.5 million General and administrative and Leasing costs $(87.5) to $(89.5) million $(89.5) to $(90.5) million Interest income $2.0 to $3.0 million +/- $3.0 million Gross interest expense $(208.0) to $(209.5) million $(207.5) to $(208.5) million Capitalized interest (4) $48.5 to $49.5 million $49.0 to $49.5 million Total development spending (5) +/- $150.0 million +/- $150.0 million Operating property dispositions $347.5 to $500.0 million $347.5 to $500.0 million Full Year 2026 Range as of July 2026 Full Year 2026 Range as of October 2026 Low End High End Low End High End $ and shares/units in thousands, except per share/unit amounts Net income available to common stockholders per share - diluted $ 0.08 $ 0.22 $ 0.23 $ 0.27 Weighted average common shares outstanding - diluted (6) 118,100 118,100 117,500 117,500 Net income available to common stockholders $ 9,055 $ 25,743 $ 26,607 $ 31,375 Adjustments: Net income attributable to noncontrolling common units of the Operating Partnership 300 300 300 300 Net income attributable to noncontrolling interests in consolidated property partnerships 17,000 17,000 17,000 17,000 Depreciation and amortization of real estate assets 379,400 379,400 369,000 369,000 Gain on sale of depreciable operating property (23,525) (23,525) (23,525) (23,525) Impairment of real estate assets 61,778 61,778 61,778 61,778 Funds From Operations attributable to noncontrolling interests in consolidated property partnerships (28,000) (28,000) (28,000) (28,000) Funds From Operations (1) $ 416,008 $ 432,696 $ 423,160 $ 427,928 Weighted average common shares/units outstanding – diluted (7) 119,200 119,200 119,200 119,200 Nareit Funds From Operations per common share/unit – diluted (1) $ 3.49 $ 3.63 $ 3.55 $ 3.59 ________________________ (1) For additional information, please refer to pages 36-38 “Management Statements on Non-GAAP Supplemental Measures”. (2) NOI from Development Properties is primarily attributable to the Company’s KOP 2 project. 2026 guidance assumes the continued capitalization of the Company’s Flower Mart project through year end. (3) Non-Cash GAAP NOI adjustments include the following items: Deferred income and lease incentives, net, Amortization of deferred revenue related to tenant-funded tenant improvements, Straight-line rents, net, Amortization of net below market rents, Deferred settlement and restoration fee income, and Other. Where Innovation Works iii
Page 5
(4) 2026 capitalized interest guidance assumes the continued capitalization of the Company’s Flower Mart project through year end. (5) Total development spending includes recently stabilized, in-process, and future development projects. (6) Calculated based on estimated weighted average shares outstanding, including non-participating share-based awards and the dilutive impact of contingently issuable shares. (7) Calculated based on the weighted average shares outstanding, including participating and non-participating share-based awards, and the dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders. The Company’s guidance estimates for the full year 2026, and the reconciliation of Net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this press release, reflect management’s views on current and future market conditions, including assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this press release. These guidance estimates do not include the impact on the Company’s operating results from any events outside of the Company’s control, as the timing and magnitude of any such events are not known at the time the Company provides guidance. There can be no assurance that the Company’s actual results will not differ materially from these estimates. Conference Call and Audio Webcast The Company’s management will discuss third quarter results and the current business environment during the Company’s October 23, 2026 earnings conference call. The call will begin at 10:00 a.m. Pacific Time and last approximately one hour. To participate and obtain conference call dial-in details, register by using the following link, https://events.q4inc.com/analyst/810842787?pwd=5kxxJfrm. Those interested in listening via the Internet can access the conference call at https://events.q4inc.com/attendee/810842787. It may be necessary to download audio software to hear the conference call. Where Innovation Works iv
Page 6
Corporate Data & Financial Highlights Company Background 2 Financial Highlights 3 Consolidated Balance Sheets 4 Consolidated Statements of Operations 5 Funds From Operations & Funds Available for Distribution 6 Supplemental Income Statement Detail 7 Net Operating Income 8 Same Property Net Operating Income Analysis (Cash Basis) 9 EBITDAre and Adjusted EBITDAre 10 Portfolio Data Stabilized Portfolio Occupancy Overview by Region 12-17 Leases Executed 18 Stabilized Portfolio Capital Expenditures 19 Stabilized Portfolio Lease Expirations 20-21 Top 20 Tenants 22 Tenant Industry Diversification 23 2026 Acquisitions 24 2026 Dispositions and Assets Under Contract 25 Consolidated Ventures (Noncontrolling Property Partnerships) 26 Development Stabilized Development & Redevelopment Projects 28 In-Process Development & Redevelopment Projects 29 Future Development Pipeline 30 Debt & Capitalization Data Capital Structure 32 Debt Maturities 33 Debt Covenants & Leverage Ratios 34 Non-GAAP Supplemental Measures 36-38 Definitions & Reconciliations 40-46 Where Innovation Works v 350 Mission, San Francisco, CA Table of Contents
Page 7
01 Corporate Data & Financial Highlights – Company Background – Financial Highlights – Consolidated Balance Sheets – Consolidated Statements of Operations – Funds From Operations & Funds Available for Distribution – Supplemental Income Statement Detail – Net Operating Income – Same Property Net Operating Income Analysis (Cash Basis) – EBITDAre and Adjusted EBITDAre The Post at Indeed Tower, Austin, TX
Page 8
Investor Relations 12200 W. Olympic Blvd., Suite 200 Los Angeles, CA 90064 (310) 481-8400 Web: www.kilroyrealty.com E-mail: investorrelations@kilroyrealty.com John N. Perry SVP, Investor Relations and Capital Markets Board of Directors Gary R. Stevenson Chair Angela M. Aman Edward F. Brennan, PhD Daryl J. Carter Jolie A. Hunt David A. Kieske Cia Buckley Marakovits Louisa G. Ritter Executive and Senior Management Team Angela M. Aman Chief Executive Officer Justin W. Smart President A. Robert Paratte EVP, Chief Leasing Officer Sherrie S. Schwartz EVP, Chief Human Resources Officer Lauren N. Stadler EVP, General Counsel and Secretary Eliott L. Trencher EVP, Chief Investment Officer and Interim Chief Financial Officer and Treasurer Chandni Jalan SVP, Chief Accounting Officer Equity Research Coverage Barclays Brendan Lynch (212) 526-9428 BofA Securities Jana Galan (646) 855-5042 BMO Capital Markets Corp. John P. Kim (212) 885-4115 BTIG Thomas Catherwood (212) 738-6140 Citigroup Investment Research Seth Bergey (212) 816-2066 Deutsche Bank Securities, Inc. Peter Abramowitz (212) 250-9504 Evercore ISI Steve Sakwa (212) 446-9462 Goldman Sachs & Co. LLC Caitlin Burrows (212) 902-4736 Green Street Advisors Dylan Burzinski (949) 640-8780 Jefferies LLC Joe Dickstein (212) 778-8771 J.P. Morgan Anthony Paolone (212) 622-6682 Keybanc Capital Markets Upal Rana (917) 368-2316 Mizuho Securities USA LLC Vikram Malhotra (212) 282-3827 RBC Capital Markets Mike Carroll (440) 715-2649 Scotiabank Nicholas Yulico (212) 225-6904 Wells Fargo Blaine Heck (410) 662-2556 Wolfe Research Ally Yaseen (646) 582-9253 Kilroy Realty Corporation is followed by the analysts listed above. Please note that any opinions, estimates, or forecasts regarding Kilroy Realty Corporation’s performance made by these analysts are theirs alone and do not represent opinions, forecasts, or predictions of Kilroy Realty Corporation or its management. Kilroy Realty Corporation does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 2 Company Background Stabilized Office & Life Science Portfolio 17.1M Kilroy Realty Corporation (NYSE: KRC) is a publicly traded real estate investment trust and member of the S&P MidCap 400 Index. The Company owns, manages, develops, and acquires real estate assets consisting primarily of premier office and life science properties in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin. 76.9% occupied leased 83.0% 123 buildings square feet at September 30, 2026 610 bps leased but not yet occupied 815 thousand square feet of leases executed in 3Q 2026
Page 9
Three Months Ended Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 INCOME STATEMENT ITEMS: Revenues $ 271,604 $ 272,371 $ 270,053 $ 272,187 $ 279,744 $ 814,028 $ 840,480 Lease Termination Fees 315 364 398 1,541 309 1,077 11,569 Capitalized Interest and Debt Costs 11,867 11,632 13,991 20,632 22,574 37,490 64,455 Capitalized Internal Overhead Costs (1) 3,702 3,852 3,977 4,120 4,682 11,531 13,123 Other Capitalized Development Costs (2) 2,437 1,554 3,190 6,382 7,353 7,181 17,832 Non-Cash Amortization of Share-Based Compensation Awards 3,229 3,079 4,869 5,145 5,436 11,177 13,945 EARNINGS METRICS: Net Income (Loss) Available to Common Stockholders $ 15,506 $ 19,905 $ (19,267) $ 12,444 $ 156,220 $ 16,144 $ 263,677 Net Operating Income (3) 173,180 180,293 178,403 176,426 188,775 531,876 559,793 EBITDAre (4) 152,963 159,986 156,406 158,139 171,561 469,355 515,060 Company's Share of EBITDAre (4) 145,590 152,478 148,583 150,555 164,126 446,651 486,759 Company's Share of Adjusted EBITDAre (4) 144,970 151,231 147,629 148,350 161,007 443,830 481,994 Funds From Operations (5) 104,633 109,338 108,846 117,158 130,561 322,817 388,762 Funds Available for Distribution (5) 62,806 83,626 91,106 90,534 100,939 237,538 313,924 PER SHARE INFORMATION (6): Net income (loss) available to common stockholders per share – diluted $ 0.13 $ 0.17 $ (0.16) $ 0.10 $ 1.31 $ 0.14 $ 2.21 Funds From Operations per common share/unit – diluted (5) 0.88 0.92 0.91 0.97 1.08 2.71 3.23 Dividends declared per common share 0.54 0.54 0.54 0.54 0.54 1.62 1.62 RATIOS (7): Net Operating Income Margin 63.8 % 66.2 % 66.1 % 64.8 % 67.5 % 65.3 % 66.6 % Net Debt to Company's Share of EBITDAre Ratio (4) 7.2x 7.0x 7.0x 7.0x 6.4x N/A N/A Net Debt to Company's Share of Adjusted EBITDAre Ratio (4) 7.3x 7.1x 7.1x 7.1x 6.5x N/A N/A Fixed Charge Coverage Ratio - Company’s Share of EBITDAre (4) 3.0x 3.1x 3.0x 3.0x 3.2x 3.0x 3.2x FFO / FAD Payout Ratio (5) 60.6% / 101.0% 58.0% / 75.8% 58.3% / 69.6% 55.1% / 71.3% 49.4% / 63.9% 58.9% / 80.1% 49.8% / 61.6% STABILIZED PORTFOLIO INFORMATION: Period End Occupancy Percentage 76.9 % 77.0 % 77.6 % 81.6 % 81.0 % 76.9 % 81.0 % Period End Leased Percentage 83.0 % 81.5 % 82.3 % 83.8 % 83.3 % 83.0 % 83.3 % Period End Occupancy Percentage excluding KOP 2 80.7 % 80.8 % 81.5 % N/A N/A 80.7 % N/A Period End Leased Percentage excluding KOP 2 84.8 % 83.3 % 84.3 % N/A N/A 84.8 % N/A Average Occupancy 76.8 % 77.6 % 77.4 % 80.9 % 80.7 % 77.3 % 81.0 % Average Occupancy excluding KOP 2 80.5 % 81.4 % 81.4 % N/A N/A 81.1 % N/A Lease Composition (Net / Gross) (8) 54% / 46% 53% / 47% 52% / 48% 52% / 48% 50% / 50% N/A N/A ________________________ Note: Refer to pages 40-43 “Definitions Included in Supplemental” for definitions of commonly used terms included throughout this report. Refer to pages 36-38 “Non-GAAP Supplemental Measures” for management statements on the Company’s non-GAAP measures presented in this report. (1) Primarily represents compensation costs capitalized to construction and development projects. (2) Represents incidental property operating and carry costs capitalized to development projects. (3) Refer to page 44 for a reconciliation of GAAP Net Income Available to Common Stockholders to Net Operating Income. (4) Refer to pages 10 and 45 for reconciliations of GAAP Net Income (Loss) Available to Common Stockholders to EBITDAre, Company’s Share of EBITDAre, and Company’s Share of Adjusted EBITDAre. (5) Refer to page 6 for reconciliations of GAAP Net Income (Loss) Available to Common Stockholders to Funds From Operations and Funds Available for Distribution and page 46 for a reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution. (6) Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders. (7) Ratios are calculated based on current period amounts, except Net Debt to Company’s Share of EBITDAre and Adjusted EBITDAre Ratios, which are calculated on a trailing 12-month basis. Refer to page 34 for additional information. (8) Based on Annualized Base Rent, including 100% of consolidated property partnerships, as of the end of the period presented. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 3 Financial Highlights (unaudited, $ in thousands, except per share amounts)
Page 10
9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 ASSETS: Land $ 1,730,514 $ 1,730,514 $ 1,730,514 $ 1,641,913 $ 1,661,679 Buildings and improvements 9,103,217 9,051,287 9,011,023 8,505,486 8,658,236 Undeveloped land and construction in progress 1,627,372 1,602,626 1,585,042 2,387,742 2,355,181 Total real estate assets held for investment 12,461,103 12,384,427 12,326,579 12,535,141 12,675,096 Accumulated depreciation and amortization (3,014,889) (2,936,240) (2,857,265) (2,843,811) (2,952,576) Total real estate assets held for investment, net 9,446,214 9,448,187 9,469,314 9,691,330 9,722,520 Real estate and other assets held for sale, net — — 188,771 115,155 — Cash and cash equivalents 94,301 253,805 192,904 179,316 372,416 Restricted cash 250 — — — — Marketable securities 34,025 34,990 31,417 30,807 33,569 Current receivables, net 16,818 12,184 15,712 12,765 13,191 Deferred rent receivables, net 420,433 423,968 425,420 424,794 436,886 Deferred leasing costs and acquisition-related intangible assets, net 272,405 264,033 271,213 278,232 229,175 Right of use ground lease assets, net 127,261 127,548 127,834 128,116 128,396 Prepaid expenses and other assets, net 64,065 67,233 52,273 54,561 56,046 Total Assets $ 10,475,772 $ 10,631,948 $ 10,774,858 $ 10,915,076 $ 10,992,199 LIABILITIES AND EQUITY: Liabilities: Secured debt, net $ 588,777 $ 590,095 $ 591,398 $ 592,685 $ 593,956 Unsecured debt, net 3,748,263 3,947,034 3,997,993 3,996,774 3,995,555 Unsecured line of credit 40,000 — — — — Accounts payable, accrued expenses, and other liabilities 309,288 260,644 303,808 288,963 321,188 Ground lease liabilities 126,979 127,198 127,414 127,628 127,830 Accrued dividends and distributions 63,430 63,422 63,421 65,009 64,996 Deferred revenue and acquisition-related intangible liabilities, net 112,854 117,845 122,272 125,628 127,931 Rents received in advance and tenant security deposits 82,705 77,736 79,638 75,701 74,888 Liabilities related to real estate assets held for sale — — — 4,945 — Total liabilities 5,072,296 5,183,974 5,285,944 5,277,333 5,306,344 Equity: Stockholders’ Equity Common stock 1,163 1,163 1,163 1,184 1,183 Additional paid-in capital 5,171,034 5,166,167 5,161,140 5,230,747 5,223,369 Retained earnings 10,558 58,881 102,859 188,876 240,810 Total stockholders’ equity 5,182,755 5,226,211 5,265,162 5,420,807 5,465,362 Noncontrolling Interests Common units of the Operating Partnership 50,512 50,935 51,328 51,911 53,154 Consolidated property partnerships 170,209 170,828 172,424 165,025 167,339 Total noncontrolling interests 220,721 221,763 223,752 216,936 220,493 Total equity 5,403,476 5,447,974 5,488,914 5,637,743 5,685,855 Total Liabilities And Equity $ 10,475,772 $ 10,631,948 $ 10,774,858 $ 10,915,076 $ 10,992,199 Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 4 Consolidated Balance Sheets (unaudited, $ in thousands)
Page 11
Three Months Ended Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 Revenues Rental income $ 266,750 $ 268,321 $ 265,330 $ 267,363 $ 274,909 $ 800,401 $ 826,224 Other property income 4,854 4,050 4,723 4,824 4,835 13,627 14,256 Total revenues 271,604 272,371 270,053 272,187 279,744 814,028 840,480 Expenses Property expenses 64,639 60,134 59,283 64,673 61,764 184,056 179,053 Real estate taxes 30,253 28,302 28,782 26,556 25,878 87,337 81,008 Ground leases 3,217 3,278 3,187 2,991 3,018 9,682 9,057 General and administrative expenses 18,408 18,933 20,699 19,485 18,247 58,040 53,623 Leasing costs 2,980 2,814 3,010 2,592 2,610 8,804 7,760 Depreciation and amortization 93,165 93,560 94,344 92,623 87,487 281,069 262,231 Total expenses 212,662 207,021 209,305 208,920 199,004 628,988 592,732 Other Income (Expenses) Interest income 620 1,247 954 2,205 3,119 2,821 4,765 Interest expense (39,376) (41,634) (38,511) (32,148) (32,152) (119,521) (94,144) Other income (expense) e ) 83 (248) 389 44 91 224 124 Gains on sales of depreciable operating properties e s — — 23,525 — 110,484 e s 23,525 e s 127,038 Impairment of real estate assets (1) — — (61,778) (16,259) — (61,778) — Total other (expenses) income (38,673) (40,635) (75,421) (46,158) 81,542 (154,729) 37,783 Net Income (Loss) 20,269 24,715 (14,673) 17,109 162,282 30,311 285,531 Net (income) loss attributable to noncontrolling common units of the Operating Partnership (151) (193) 185 (120) (1,524) (159) (2,562) Net income attributable to noncontrolling interests in consolidated property partnerships (4,612) (4,617) (4,779) (4,545) (4,538) (14,008) (19,292) Total net income attributable to noncontrolling interests (4,763) (4,810) (4,594) (4,665) (6,062) (14,167) (21,854) Net Income (Loss) Available To Common Stockholders $ 15,506 $ 19,905 $ (19,267) $ 12,444 $ 156,220 $ 16,144 $ 263,677 Weighted average common shares outstanding – basic 116,309 116,292 117,637 118,338 118,296 116,741 118,259 Weighted average common shares outstanding – diluted 117,240 117,063 117,637 119,153 118,822 117,544 118,724 Net Income (Loss) Available To Common Stockholders Per Share Net income (loss) available to common stockholders per share – basic $ 0.13 $ 0.17 $ (0.16) $ 0.10 $ 1.32 $ 0.14 $ 2.22 Net income (loss) available to common stockholders per share – diluted $ 0.13 $ 0.17 $ (0.16) $ 0.10 $ 1.31 $ 0.14 $ 2.21 ________________________ (1) During the three months ended March 31, 2026, we recognized an impairment charge of approximately $61.8 million to reduce the carrying amount of the Columbia Square Living and Jardine residential towers to their current fair value less closing costs. The sale of these properties closed in April 2026. During the three months ended December 31, 2025, we recognized an impairment charge of approximately $16.3 million to reduce the carrying amount of Sunset Media Center to its current fair value less closing costs. The sale of this property closed in December 2025. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 5 Consolidated Statements of Operations (unaudited, $ and shares in thousands, except per share amounts)
Page 12
Three Months Ended Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 FUNDS FROM OPERATIONS: Net income (loss) available to common stockholders $ 15,506 $ 19,905 $ (19,267) $ 12,444 $ 156,220 $ 16,144 $ 263,677 Adjustments: Net income (loss) attributable to noncontrolling common units of the Operating Partnership 151 193 (185) 120 1,524 159 2,562 Net income attributable to noncontrolling interests in consolidated property partnerships 4,612 4,617 4,779 4,545 4,538 14,008 19,292 Depreciation and amortization of real estate assets 91,737 92,131 92,885 91,213 86,080 276,753 258,058 Gains on sales of depreciable operating properties — — (23,525) — (110,484) (23,525) (127,038) Impairment of real estate assets — — 61,778 16,259 — 61,778 — Funds From Operations attributable to noncontrolling interests in consolidated property partnerships (7,373) (7,508) (7,619) (7,423) (7,317) (22,500) (27,789) Funds From Operations $ 104,633 $ 109,338 $ 108,846 $ 117,158 $ 130,561 $ 322,817 $ 388,762 Weighted average common shares/units outstanding – basic (1) 117,978 117,956 119,251 119,869 119,870 118,390 119,823 Weighted average common shares/units outstanding – diluted (1) 118,910 118,726 119,957 120,684 120,397 119,193 120,288 FFO per common share/unit – basic (2) $ 0.89 $ 0.93 $ 0.91 $ 0.98 $ 1.09 $ 2.73 $ 3.24 FFO per common share/unit – diluted (2) $ 0.88 $ 0.92 $ 0.91 $ 0.97 $ 1.08 $ 2.71 $ 3.23 FUNDS AVAILABLE FOR DISTRIBUTION: Funds From Operations $ 104,633 $ 109,338 $ 108,846 $ 117,158 $ 130,561 $ 322,817 $ 388,762 Adjustments: Recurring tenant improvements, leasing commissions, and capital expenditures (47,038) (28,111) (18,743) (31,724) (36,959) (93,892) (88,377) Amortization of deferred revenue related to tenant-funded tenant improvements (3,353) (3,315) (3,218) (3,547) (3,639) (9,886) (11,097) Straight-line rents, net 2,832 1,502 (701) 2,358 1,303 3,633 9,270 Amortization of net below market rents (682) (651) (641) (624) (764) (1,974) (2,455) Amortization of deferred financing costs and net debt discount/premium 1,867 2,637 1,662 1,162 1,218 6,166 3,615 Non-cash amortization of share-based compensation awards 3,229 3,079 4,869 5,145 5,436 11,177 13,945 Lease related adjustments and other (3) (818) (1,261) (1,380) (640) 1,877 (3,459) (2,426) Adjustments attributable to noncontrolling interests in consolidated property partnerships 2,136 408 412 1,246 1,906 2,956 2,687 Funds Available for Distribution $ 62,806 $ 83,626 $ 91,106 $ 90,534 $ 100,939 $ 237,538 $ 313,924 ________________________ (1) Calculated based on weighted average shares outstanding including participating share-based awards and assuming the exchange of all common limited partnership units outstanding. Diluted amounts also include non- participating share-based awards and the dilutive impact of contingently issuable shares. (2) Reported per common share/unit amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders. (3) Includes deferred income and lease incentives, net, deferred settlement and restoration fee income, and deferred lease termination fee income. Includes non-cash ground rent expense beginning in Q1 2026. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 6 Funds From Operations & Funds Available for Distribution (unaudited, $ and shares in thousands, except per share amounts)
Page 13
Three Months Ended Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 Revenues Income Statement Category * Base rent Rental income $ 195,695 $ 195,445 $ 193,622 $ 197,081 $ 201,633 $ 584,762 $ 606,228 * Tenant reimbursements Rental income 52,936 46,994 46,527 47,779 51,867 146,457 146,215 * Other revenues (1) Rental income 14,878 15,951 18,417 18,442 16,656 49,246 52,253 Deferred income and lease incentives, net (2) Rental income 614 965 1,060 257 707 2,639 2,312 Amortization of deferred revenue related to tenant-funded tenant improvements Rental income 3,353 3,315 3,218 3,547 3,639 9,886 11,097 Straight-line rents, net Rental income (2,832) (1,502) 701 (2,358) (1,303) (3,633) (9,270) Amortization of net below market rents Rental income 682 651 641 624 764 1,974 2,455 * Settlement and restoration fee income Rental income 1,109 6,138 746 450 2,663 7,993 3,365 Deferred settlement and restoration fee income Rental income — — — — (2,026) — — Cash lease termination fee income Rental income 42 — 9 1,158 867 51 11,455 Deferred lease termination fee income Rental income 273 364 389 383 (558) 1,026 114 * Other property income (3) Other property income 4,854 4,050 4,723 4,824 4,835 13,627 14,256 Total Revenues $ 271,604 $ 272,371 $ 270,053 $ 272,187 $ 279,744 $ 814,028 $ 840,480 ________________________ * Represents a component of Cash Net Operating Income. (1) Primarily comprised of residential income, contractual parking income, and net of revenues deemed uncollectible. (2) Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. (3) Primarily comprised of transient parking income. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 7 Supplemental Income Statement Detail (unaudited, $ in thousands)
Page 14
Three Months Ended Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 Cash Operating Revenues: Base rent $ 195,695 $ 195,445 $ 193,622 $ 197,081 $ 201,633 $ 584,762 $ 606,228 Tenant reimbursements 52,936 46,994 46,527 47,779 51,867 146,457 146,215 Other revenues (1) 14,878 15,951 18,417 18,442 16,656 49,246 52,253 Settlement and restoration fee income 1,109 6,138 746 450 2,663 7,993 3,365 Other property income (2) 4,854 4,050 4,723 4,824 4,835 13,627 14,256 Total cash operating revenues 269,472 268,578 264,035 268,576 277,654 802,085 822,317 Cash Operating Expenses: Property expenses 64,639 60,134 59,283 64,673 61,764 184,056 179,053 Real estate taxes 30,253 28,302 28,782 26,556 25,878 87,337 81,008 Ground leases 3,148 3,210 3,118 2,913 2,940 9,476 8,823 Total cash operating expenses 98,040 91,646 91,183 94,142 90,582 280,869 268,884 Cash Net Operating Income (3) 171,432 176,932 172,852 174,434 187,072 521,216 553,433 Deferred income and lease incentives, net (4) 614 965 1,060 257 707 2,639 2,312 Amortization of deferred revenue related to tenant-funded tenant improvements 3,353 3,315 3,218 3,547 3,639 9,886 11,097 Straight-line rents, net (2,832) (1,502) 701 (2,358) (1,303) (3,633) (9,270) Amortization of net below market rents 682 651 641 624 764 1,974 2,455 Deferred settlement and restoration fee income — — — — (2,026) — — Other (5) (69) (68) (69) (78) (78) (206) (234) Net Operating Income (3) 173,180 180,293 178,403 176,426 188,775 531,876 559,793 Lease termination fees 315 364 398 1,541 309 1,077 11,569 General and administrative expenses (18,408) (18,933) (20,699) (19,485) (18,247) (58,040) (53,623) Leasing costs (2,980) (2,814) (3,010) (2,592) (2,610) (8,804) (7,760) Other income (expense) 83 (248) 389 44 91 224 124 Interest income 620 1,247 954 2,205 3,119 2,821 4,765 Interest expense (39,376) (41,634) (38,511) (32,148) (32,152) (119,521) (94,144) Depreciation and amortization (93,165) (93,560) (94,344) (92,623) (87,487) (281,069) (262,231) Gains on sales of depreciable operating properties — — 23,525 — 110,484 23,525 127,038 Impairment of real estate assets — — (61,778) (16,259) — (61,778) — Net Income (Loss) $ 20,269 $ 24,715 $ (14,673) $ 17,109 $ 162,282 $ 30,311 $ 285,531 ________________________ (1) Primarily comprised of residential income, contractual parking income, and net of revenues deemed uncollectible. (2) Primarily comprised of transient parking income. (3) Refer to page 44 for a reconciliation of GAAP Net Income Available to Common Stockholders to Cash Net Operating Income and Net Operating Income. (4) Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. (5) Includes other non-cash amounts primarily related to ground rent expense. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 8 Net Operating Income (unaudited, $ in thousands)
Page 15
Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 % Contribution 2026 2025 % Contribution Total Same Property Portfolio Number of properties 113 113 Square Feet 15,635,655 15,635,655 Average Occupancy (1) 81.2 % 81.6 % 81.7 % 81.5 % Percent of Stabilized Portfolio 91.2 % 91.2 % Cash Operating Revenues: Base rent $ 187,622 $ 185,885 1.0 % $ 560,043 $ 558,602 0.3 % Tenant reimbursements 50,094 49,148 0.5 % 139,041 137,700 0.3 % Other revenues (2) 14,621 12,289 1.3 % 42,564 38,490 0.8 % Settlement and restoration fee income 1,108 2,663 (0.9) % 7,971 3,365 0.9 % Other property income (3) 4,235 4,124 0.1 % 11,834 12,058 — % Total cash operating revenues 257,680 254,109 2.0 % 761,453 750,215 2.3 % Cash Operating Expenses: Property expenses 58,619 55,019 (2.1) % 164,730 158,824 (1.2) % Real estate taxes 25,296 23,011 (1.3) % 71,774 70,199 (0.3) % Ground leases 3,147 2,940 (0.1) % 9,475 8,823 (0.1) % Total cash operating expenses 87,062 80,970 (3.5) % 245,979 237,846 (1.6) % Cash Net Operating Income (4) (5) (6) $ 170,618 $ 173,139 (1.5) % $ 515,474 $ 512,369 0.7 % ________________________ (1) Calculated as the average of the daily ending occupancy percentages. (2) Primarily comprised of residential income, contractual parking income, and net of revenues deemed uncollectible. (3) Primarily comprised of transient parking income. (4) For Same Property Cash Net Operating Income, restoration and settlement fee income is recognized in the period in which it is received, which may not correspond with the timing of GAAP revenue recognition. Tenant prepayments are recognized in the applicable lease billing period. (5) Refer to page 44 for a reconciliation of GAAP Net Income Available to Common Stockholders to Same Property Cash Net Operating Income. (6) For the three months ended September 30, 2026 and 2025, Same Property Cash Net Operating Income from our One Paseo Living residential property represented 2.9% and 3.0% of total Same Property Cash Net Operating Income, respectively. For the nine months ended September 30, 2026 and 2025, Same Property Cash Net Operating Income from our One Paseo Living residential property represented 2.9% and 2.8% of total Same Property Cash Net Operating Income, respectively. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 9 Same Property Net Operating Income Analysis (Cash Basis) (unaudited, $ in thousands)
Page 16
Three Months Ended Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 Net Income (Loss) $ 20,269 $ 24,715 $ (14,673) $ 17,109 $ 162,282 $ 30,311 $ 285,531 Interest expense 39,376 41,634 38,511 32,148 32,152 119,521 94,144 Depreciation and amortization 93,165 93,560 94,344 92,623 87,487 281,069 262,231 Taxes 153 77 (29) — 124 201 192 Gains on sales of depreciable operating properties — — (23,525) — (110,484) (23,525) (127,038) Impairment of real estate assets — — 61,778 16,259 — 61,778 — EBITDAre 152,963 159,986 156,406 158,139 171,561 469,355 515,060 EBITDAre attributable to noncontrolling interests in consolidated property partnerships (7,373) (7,508) (7,823) (7,584) (7,435) (22,704) (28,301) Company's Share of EBITDAre 145,590 152,478 148,583 150,555 164,126 446,651 486,759 Interest income (620) (1,247) (954) (2,205) (3,119) (2,821) (4,765) Company's Share of Adjusted EBITDAre $ 144,970 $ 151,231 $ 147,629 $ 148,350 $ 161,007 $ 443,830 $ 481,994 Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 10 EBITDAre and Adjusted EBITDAre (unaudited, $ in thousands)
Page 17
02 Portfolio Data – Stabilized Portfolio Occupancy Overview by Region – Leases Executed – Stabilized Portfolio Capital Expenditures – Stabilized Portfolio Lease Expirations – Top 20 Tenants – Tenant Industry Diversification – 2026 Acquisitions – 2026 Dispositions and Assets Under Contract – Consolidated Ventures (Noncontrolling Property Partnerships) Maple Plaza, Beverly Hills, CA
Page 18
Total Rentable Square Feet Occupied at Leased at YTD NOI % Rentable Square Feet % 9/30/2026 6/30/2026 9/30/2026 6/30/2026 SAN FRANCISCO BAY AREA San Francisco CBD 25.6 % 19.9 % 3,410,022 81.2 % 81.3 % 81.3 % 82.0 % South San Francisco (3) 7.9 % 9.8 % 1,677,847 48.0 % 47.9 % 73.5 % 69.5 % Other Peninsula 5.8 % 4.3 % 745,127 89.2 % 89.4 % 95.4 % 89.4 % Silicon Valley 5.0 % 3.6 % 622,640 100.0 % 100.0 % 100.0 % 100.0 % Total San Francisco Bay Area 44.3 % 37.6 % 6,455,636 75.3 % 75.3 % 82.7 % 81.3 % LOS ANGELES El Segundo 2.8 % 6.4 % 1,103,595 66.0 % 65.4 % 66.5 % 65.8 % Hollywood / West Hollywood 7.4 % 6.2 % 1,057,790 85.9 % 86.1 % 95.6 % 95.6 % Long Beach 2.6 % 5.6 % 957,063 77.2 % 78.5 % 84.0 % 81.6 % West Los Angeles 1.3 % 3.8 % 655,094 56.0 % 55.2 % 63.8 % 63.0 % Beverly Hills 1.8 % 1.8 % 306,366 74.9 % 80.4 % 86.8 % 84.1 % Culver City 0.2 % 1.0 % 166,207 56.2 % 52.2 % 60.3 % 52.2 % Total Los Angeles 16.1 % 24.8 % 4,246,115 72.2 % 72.5 % 78.5 % 77.2 % SEATTLE Lake Union / Denny Regrade 11.4 % 12.1 % 2,078,012 81.2 % 80.7 % 86.8 % 85.9 % Bellevue 5.7 % 5.4 % 919,295 75.5 % 74.9 % 80.7 % 75.6 % Total Seattle 17.1 % 17.5 % 2,997,307 79.5 % 78.9 % 84.9 % 82.7 % SAN DIEGO Del Mar 13.1 % 10.7 % 1,853,360 88.3 % 89.2 % 90.5 % 89.4 % Little Italy / Point Loma 0.8 % 1.9 % 320,371 62.9 % 62.9 % 69.8 % 67.3 % University Towne Center 1.8 % 1.7 % 283,134 81.6 % 81.6 % 90.3 % 90.3 % Torrey Pines 1.7 % 1.4 % 232,166 75.1 % 75.1 % 75.1 % 75.1 % Total San Diego 17.4 % 15.7 % 2,689,031 83.4 % 84.1 % 86.7 % 85.6 % AUSTIN Austin CBD 5.1 % 4.4 % 758,975 84.0 % 84.0 % 90.4 % 88.8 % Total Austin 5.1 % 4.4 % 758,975 84.0 % 84.0 % 90.4 % 88.8 % Total Stabilized Portfolio 100.0 % 100.0 % 17,147,064 76.9 % 77.0 % 83.0 % 81.5 % Total Stabilized Portfolio Excluding KOP 2 80.7 % 80.8 % 84.8 % 83.3 % Average Occupancy (4) Quarter to Date Quarter to Date (Excluding KOP 2) Year to Date Year to Date (Excluding KOP 2) 76.8% 80.5% 77.3% 81.1% ________________________ (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. Excludes our residential property. (2) Occupied and leased percentage calculations presented throughout this report are based on rentable square footage at the end of the period, inclusive of all remeasurements that occurred during the period. (3) KOP 2 stabilized during the three months ended March 31, 2026. (4) Calculated as the average of the daily ending occupancy percentages. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 12 Stabilized Portfolio Occupancy Overview by Region (1) (2) (unaudited)
Page 19
Rentable Square Feet Occupied at Leased at Campus Submarket 9/30/2026 6/30/2026 9/30/2026 6/30/2026 SAN FRANCISCO BAY AREA, CALIFORNIA 100 Hooper Street 100 Hooper San Francisco CBD 417,914 94.4 % 94.4 % 94.4 % 94.4 % 100 First Street 100 First Street San Francisco CBD 480,457 88.2 % 92.2 % 88.3 % 92.2 % 201 Third Street 201 Third Street San Francisco CBD 355,960 89.8 % 86.4 % 89.8 % 90.7 % 303 Second Street 303 Second Street San Francisco CBD 784,658 63.7 % 63.1 % 64.0 % 64.0 % 350 Mission Street 350 Mission Street San Francisco CBD 455,340 99.7 % 99.7 % 99.7 % 99.7 % 360 Third Street 360 Third Street San Francisco CBD 436,357 45.7 % 45.7 % 45.7 % 45.7 % 250 Brannan Street 250 Brannan San Francisco CBD 100,850 100.0 % 100.0 % 100.0 % 100.0 % 301 Brannan Street 301 Brannan San Francisco CBD 82,834 100.0 % 100.0 % 100.0 % 100.0 % 333 Brannan Street 333 / 345 Brannan San Francisco CBD 185,602 100.0 % 100.0 % 100.0 % 100.0 % 345 Brannan Street 333 / 345 Brannan San Francisco CBD 110,050 99.7 % 99.7 % 99.7 % 99.7 % 350 Oyster Point Boulevard Kilroy Oyster Point - Phase 1 South San Francisco 234,892 100.0 % 100.0 % 100.0 % 100.0 % 352 Oyster Point Boulevard Kilroy Oyster Point - Phase 1 South San Francisco 232,215 100.0 % 100.0 % 100.0 % 100.0 % 354 Oyster Point Boulevard Kilroy Oyster Point - Phase 1 South San Francisco 193,472 100.0 % 100.0 % 100.0 % 100.0 % 363 Oyster Point Boulevard * Kilroy Oyster Point - Phase 2 South San Francisco 318,935 0.0 % 0.0 % 0.0 % 0.0 % 365 Oyster Point Boulevard * Kilroy Oyster Point - Phase 2 South San Francisco 272,333 23.5 % 22.9 % 53.6 % 53.0 % 369 Oyster Point Boulevard * Kilroy Oyster Point - Phase 2 South San Francisco 280,470 0.0 % 0.0 % 100.0 % 100.0 % 345 Oyster Point Boulevard Oyster Point Tech Center South San Francisco 40,410 100.0 % 100.0 % 100.0 % 100.0 % 347 Oyster Point Boulevard Oyster Point Tech Center South San Francisco 39,780 100.0 % 100.0 % 100.0 % 100.0 % 349 Oyster Point Boulevard Oyster Point Tech Center South San Francisco 65,340 0.0 % 0.0 % 100.0 % 0.0 % 900 Jefferson Avenue Crossing 900 Other Peninsula 237,139 100.0 % 100.0 % 100.0 % 100.0 % 900 Middlefield Road Crossing 900 Other Peninsula 122,134 98.2 % 100.0 % 98.2 % 100.0 % 4100 Bohannon Drive Menlo Corporate Center Other Peninsula 48,645 100.0 % 100.0 % 100.0 % 100.0 % 4200 Bohannon Drive Menlo Corporate Center Other Peninsula 44,081 48.6 % 48.9 % 48.6 % 48.9 % 4300 Bohannon Drive Menlo Corporate Center Other Peninsula 64,905 85.2 % 85.3 % 85.2 % 85.3 % 4400 Bohannon Drive * Menlo Corporate Center Other Peninsula 49,065 6.3 % 6.3 % 100.0 % 6.3 % 4500 Bohannon Drive Menlo Corporate Center Other Peninsula 64,139 100.0 % 100.0 % 100.0 % 100.0 % 4600 Bohannon Drive Menlo Corporate Center Other Peninsula 49,863 100.0 % 100.0 % 100.0 % 100.0 % 4700 Bohannon Drive Menlo Corporate Center Other Peninsula 65,156 100.0 % 100.0 % 100.0 % 100.0 % 680 E. Middlefield Road 680 & 690 Middlefield Silicon Valley 171,676 100.0 % 100.0 % 100.0 % 100.0 % 690 E. Middlefield Road 680 & 690 Middlefield Silicon Valley 171,215 100.0 % 100.0 % 100.0 % 100.0 % 1701 Page Mill Road Page Mill / Porter Silicon Valley 128,688 100.0 % 100.0 % 100.0 % 100.0 % 3150 Porter Drive Page Mill / Porter Silicon Valley 36,886 100.0 % 100.0 % 100.0 % 100.0 % 1290-1300 Terra Bella Avenue Terra Bella Silicon Valley 114,175 100.0 % 100.0 % 100.0 % 100.0 % Total San Francisco Bay Area 6,455,636 75.3 % 75.3 % 82.7 % 81.3 % ________________________ * Excluded from the Same Property portfolio. (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 13 Stabilized Portfolio Occupancy Overview by Region, continued (1) (unaudited)
Page 20
Rentable Square Feet Occupied at Leased at Campus Submarket 9/30/2026 6/30/2026 9/30/2026 6/30/2026 LOS ANGELES, CALIFORNIA 2240 E. Imperial Highway Kilroy Airport Center El Segundo 122,870 100.0 % 100.0 % 100.0 % 100.0 % 2250 E. Imperial Highway Kilroy Airport Center El Segundo 298,728 37.7 % 37.7 % 37.7 % 37.7 % 2260 E. Imperial Highway Kilroy Airport Center El Segundo 298,728 100.0 % 100.0 % 100.0 % 100.0 % 909 N. Pacific Coast Highway The Nines El Segundo 244,880 67.3 % 66.4 % 69.4 % 68.3 % 999 N. Pacific Coast Highway The Nines El Segundo 138,389 21.3 % 18.3 % 21.3 % 18.3 % 1500 N. El Centro Avenue Columbia Square Hollywood / West Hollywood 113,447 63.6 % 63.6 % 63.6 % 63.6 % 1525 N. Gower Street Columbia Square Hollywood / West Hollywood 9,610 100.0 % 100.0 % 100.0 % 100.0 % 1575 N. Gower Street Columbia Square Hollywood / West Hollywood 264,430 100.0 % 100.0 % 100.0 % 100.0 % 6115 W. Sunset Boulevard Columbia Square Hollywood / West Hollywood 26,237 73.4 % 73.4 % 98.2 % 98.2 % 6121 W. Sunset Boulevard Columbia Square Hollywood / West Hollywood 93,418 0.0 % 0.0 % 100.0 % 100.0 % 1350 Ivar Avenue On Vine Hollywood / West Hollywood 16,448 100.0 % 100.0 % 100.0 % 100.0 % 1355 Vine Street On Vine Hollywood / West Hollywood 183,129 100.0 % 100.0 % 100.0 % 100.0 % 1375 Vine Street On Vine Hollywood / West Hollywood 159,236 100.0 % 100.0 % 100.0 % 100.0 % 1395 Vine Street On Vine Hollywood / West Hollywood 2,575 100.0 % 100.0 % 100.0 % 100.0 % 8560 W. Sunset Boulevard The Sunset Hollywood / West Hollywood 76,359 97.0 % 98.9 % 100.0 % 100.0 % 8570 W. Sunset Boulevard The Sunset Hollywood / West Hollywood 49,276 99.0 % 99.0 % 99.0 % 99.0 % 8580 W. Sunset Boulevard The Sunset Hollywood / West Hollywood 6,875 41.0 % 41.0 % 41.0 % 41.0 % 8590 W. Sunset Boulevard The Sunset Hollywood / West Hollywood 56,750 99.7 % 99.7 % 99.7 % 99.7 % 3750 Kilroy Airport Way Aero Long Beach 7,558 100.0 % 100.0 % 100.0 % 100.0 % 3760 Kilroy Airport Way Aero Long Beach 167,317 84.8 % 83.1 % 100.0 % 84.8 % 3780 Kilroy Airport Way Aero Long Beach 222,191 98.1 % 98.1 % 98.1 % 98.1 % 3800 Kilroy Airport Way Aero Long Beach 192,476 52.0 % 52.0 % 61.5 % 55.0 % 3840 Kilroy Airport Way Aero Long Beach 138,903 100.0 % 100.0 % 100.0 % 100.0 % 3880 Kilroy Airport Way Aero Long Beach 97,246 39.0 % 39.0 % 47.7 % 47.7 % 3900 Kilroy Airport Way Aero Long Beach 131,372 72.2 % 83.8 % 81.9 % 93.4 % 2100/2110 Colorado Avenue Santa Monica Media Center West Los Angeles 109,225 53.2 % 53.2 % 100.0 % 100.0 % 12233 W. Olympic Boulevard Tribeca West West Los Angeles 156,746 41.3 % 38.0 % 41.3 % 38.0 % 12100 W. Olympic Boulevard Westside Media Center West Los Angeles 155,679 68.7 % 68.7 % 68.7 % 68.7 % 12200 W. Olympic Boulevard Westside Media Center West Los Angeles 154,544 37.7 % 37.7 % 37.7 % 37.7 % 12312 W. Olympic Boulevard Westside Media Center West Los Angeles 78,900 100.0 % 100.0 % 100.0 % 100.0 % 335-345 N. Maple Drive * Maple Plaza Beverly Hills 306,366 74.9 % 80.4 % 86.8 % 84.1 % 3101-3243 S. La Cienega Boulevard Blackwelder Culver City 166,207 56.2 % 52.2 % 60.3 % 52.2 % Total Los Angeles 4,246,115 72.2 % 72.5 % 78.5 % 77.2 % ________________________ * Excluded from the Same Property portfolio. (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 14 Stabilized Portfolio Occupancy Overview by Region, continued (1) (unaudited)
Page 21
Rentable Square Feet Occupied at Leased at Campus Submarket 9/30/2026 6/30/2026 9/30/2026 6/30/2026 SEATTLE, WASHINGTON 333 Dexter Avenue North 333 Dexter Lake Union / Denny Regrade 618,766 100.0 % 100.0 % 100.0 % 100.0 % 401 Terry Avenue North 401 Terry Lake Union / Denny Regrade 174,530 100.0 % 100.0 % 100.0 % 100.0 % 701 N. 34th Street Fremont Lake Union Center Lake Union / Denny Regrade 142,820 64.0 % 64.0 % 64.0 % 64.0 % 801 N. 34th Street Fremont Lake Union Center Lake Union / Denny Regrade 173,615 100.0 % 100.0 % 100.0 % 100.0 % 837 N. 34th Street Fremont Lake Union Center Lake Union / Denny Regrade 112,487 100.0 % 71.3 % 100.0 % 100.0 % 2001 8th Avenue West8 Lake Union / Denny Regrade 535,395 36.7 % 40.6 % 58.4 % 54.7 % 320 Westlake Avenue North Westlake Terry Lake Union / Denny Regrade 184,644 100.0 % 100.0 % 100.0 % 100.0 % 321 Terry Avenue North Westlake Terry Lake Union / Denny Regrade 135,755 100.0 % 100.0 % 100.0 % 100.0 % 601 108th Avenue NE Key Center Bellevue 490,738 64.1 % 63.3 % 73.5 % 64.1 % 10900 NE 4th Street Skyline Tower Bellevue 428,557 88.7 % 88.2 % 88.9 % 88.7 % Total Seattle 2,997,307 79.5 % 78.9 % 84.9 % 82.7 % ________________________ (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 15 Stabilized Portfolio Occupancy Overview by Region, continued (1) (unaudited)
Page 22
Rentable Square Feet Occupied at Leased at Campus Submarket (2) 9/30/2026 6/30/2026 9/30/2026 6/30/2026 SAN DIEGO, CALIFORNIA 12225 El Camino Real Carmel Valley Corporate Center Del Mar 58,401 100.0 % 100.0 % 100.0 % 100.0 % 12235 El Camino Real Carmel Valley Corporate Center Del Mar 53,751 100.0 % 100.0 % 100.0 % 100.0 % 12400 High Bluff Drive 12400 High Bluff Drive Del Mar 216,518 91.5 % 91.5 % 91.5 % 91.5 % 3579 Valley Centre Drive Kilroy Centre Del Mar Del Mar 54,960 100.0 % 100.0 % 100.0 % 100.0 % 3611 Valley Centre Drive Kilroy Centre Del Mar Del Mar 132,425 100.0 % 100.0 % 100.0 % 100.0 % 3661 Valley Centre Drive Kilroy Centre Del Mar Del Mar 124,756 34.2 % 34.2 % 64.1 % 34.2 % 3721 Valley Centre Drive Kilroy Centre Del Mar Del Mar 117,777 80.4 % 94.8 % 80.4 % 94.8 % 3811 Valley Centre Drive Kilroy Centre Del Mar Del Mar 118,912 100.0 % 100.0 % 100.0 % 100.0 % 12770 El Camino Real One Paseo Del Mar 75,035 100.0 % 100.0 % 100.0 % 100.0 % 12780 El Camino Real One Paseo Del Mar 140,591 100.0 % 100.0 % 100.0 % 100.0 % 12790 El Camino Real One Paseo Del Mar 87,944 100.0 % 100.0 % 100.0 % 100.0 % 12830 El Camino Real One Paseo Del Mar 196,444 100.0 % 100.0 % 100.0 % 100.0 % 12860 El Camino Real One Paseo Del Mar 92,042 100.0 % 100.0 % 100.0 % 100.0 % 3745 Paseo Place One Paseo Del Mar 95,885 94.4 % 94.1 % 95.7 % 96.8 % 12707 High Bluff Drive One Paseo Junction Del Mar 59,245 91.2 % 91.2 % 94.6 % 91.2 % 12777 High Bluff Drive One Paseo Junction Del Mar 44,486 100.0 % 100.0 % 100.0 % 100.0 % 12340 El Camino Real The Caminos Del Mar 110,950 25.9 % 25.9 % 25.9 % 25.9 % 12390 El Camino Real The Caminos Del Mar 73,238 100.0 % 100.0 % 100.0 % 100.0 % 2100 Kettner Boulevard 2100 Kettner Little Italy / Point Loma 212,915 50.1 % 50.1 % 60.5 % 56.8 % 2305 Historic Decatur Road Kilroy Liberty Station Little Italy / Point Loma 107,456 88.3 % 88.3 % 88.3 % 88.3 % 4690 Executive Drive * 4690 Executive University Towne Center 52,074 0.0 % 0.0 % 47.3 % 47.3 % 9455 Towne Centre Drive 9455 Towne Centre Drive University Towne Center 160,444 100.0 % 100.0 % 100.0 % 100.0 % 9514 Towne Centre Drive 9514 Towne Centre Drive University Towne Center 70,616 100.0 % 100.0 % 100.0 % 100.0 % 3530 John Hopkins Court * Nautilus Torrey Pines 45,589 100.0 % 100.0 % 100.0 % 100.0 % 3535 General Atomics Court * Nautilus Torrey Pines 80,543 28.1 % 28.1 % 28.1 % 28.1 % 3550 John Hopkins Court * Nautilus Torrey Pines 62,739 100.0 % 100.0 % 100.0 % 100.0 % 3565 General Atomics Court * Nautilus Torrey Pines 43,295 100.0 % 100.0 % 100.0 % 100.0 % Total San Diego 2,689,031 83.4 % 84.1 % 86.7 % 85.6 % ________________________ * Excluded from the Same Property portfolio. (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. (2) The Company defines the Del Mar submarket as Del Mar, Del Mar Heights, and Carmel Valley. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 16 Stabilized Portfolio Occupancy Overview by Region, continued (1) (unaudited)
Page 23
Rentable Square Feet Occupied at Leased at Campus Submarket 9/30/2026 6/30/2026 9/30/2026 6/30/2026 AUSTIN, TEXAS 200 W. 6th Street Indeed Tower Austin CBD 758,975 84.0 % 84.0 % 90.4 % 88.8 % Total Austin 758,975 84.0 % 84.0 % 90.4 % 88.8 % Total Stabilized Portfolio 17,147,064 76.9 % 77.0 % 83.0 % 81.5 % Total Stabilized Portfolio Excluding KOP 2 80.7 % 80.8 % 84.8 % 83.3 % Average Residential Occupancy Quarter to Date Year to Date RESIDENTIAL PROPERTY Campus Submarket (2) Total No. of Units 9/30/2026 6/30/2026 9/30/2026 SAN DIEGO, CALIFORNIA 3200 Paseo Village Way One Paseo Living Del Mar 608 94.8 % 95.6 % 95.1% ________________________ (1) Includes all properties owned and included in the stabilized portfolio as of the end of the period presented. (2) The Company defines the Del Mar submarket as Del Mar, Del Mar Heights, and Carmel Valley. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 17 Stabilized Portfolio Occupancy Overview by Region, continued (1) (unaudited)
Page 24
# of Leases Square Feet Weighted Average Lease Term (Mo.) TI/LC Per Sq.Ft. (2) TI/LC Per Sq.Ft. / Year (2)Quarter to Date New Renewal New Renewal Total 2nd Gen Leasing 19 14 335,401 343,139 678,540 99 $ 94.43 $ 11.48 1st Gen / Major Repositioning / In-Process Development & Redevelopment Leasing 8 — 124,271 — 124,271 101 $ 283.72 $ 39.01 Total 27 14 459,672 343,139 802,811 # of Leases Square Feet Weighted Average Lease Term (Mo.) TI/LC Per Sq.Ft. (2) TI/LC Per Sq.Ft. / Year (2)Year to Date New Renewal New Renewal Total 2nd Gen Leasing 57 38 699,845 522,145 1,221,990 81 $ 78.32 $ 11.08 1st Gen / Major Repositioning / In-Process Development & Redevelopment Leasing 16 — 414,248 — 414,248 148 $ 300.54 $ 29.53 Total 73 38 1,114,093 522,145 1,636,238 Quarter to Date Year to Date 2nd Gen Leasing Change in Rents Changes in GAAP Rents (3) Changes in Cash Rents (4) Changes in GAAP Rents (3) Changes in Cash Rents (4) Leases Signed On Space Vacant Less Than or Equal to 12 Months 37.9 % 13.9 % 32.8 % 12.6 % All Leases Signed 30.6 % 9.7 % 17.5 % 2.1 % Retention Rate Calculations Quarter to Date Year to Date Retention Rate 78.3 % 45.0 % Retention Rate, including subtenants 81.2 % 50.2 % Leases Signed But Not Yet Commenced (5) Period of Estimated Lease Commencement (6) Q4 2026 H1 2027 H2 2027 2028 and Beyond Total Square Feet 250,650 315,277 327,366 509,270 1,402,563 Annualized Base Rent (“ABR”) $ 14,153 $ 17,359 $ 16,741 $ 52,448 $ 100,701 ABR per Sq. Ft. $ 56.47 $ 55.06 $ 51.14 $ 102.99 $ 71.80 Net Leases 78 % Gross Leases 22 % Total ABR 100 % ________________________ (1) Includes 100% of consolidated property partnerships. Excludes leases with a lease term of less than one year (i.e. short-term leases). During the three months ended September 30, 2026, the Company signed 11,880 square feet of new short-term leasing on vacant space. During the nine months ended September 30, 2026 , the Company signed 122,169 square feet of short-term leases, comprised of 76,437 square feet of new leasing on vacant space and 45,732 square feet of renewal leasing. (2) Includes tenant improvements and third-party leasing commissions, and excludes tenant-funded tenant improvements and indirect leasing costs. (3) Calculated as the change between the expiring GAAP rent and the new GAAP rent for the same space. When necessary, lease structures are modified (adjusted for net leases) for comparability. Space that was vacant when the property was acquired is excluded from these calculations. (4) Calculated as the change between the expiring cash rent and the new cash rent for the same space. When necessary, lease structures are modified (adjusted for net leases) for comparability. Space that was vacant when the property was acquired is excluded from these calculations. (5) Includes 1,041,888 square feet of new leasing on previously vacant space, 144,798 square feet of non-stabilized development leasing, and 215,877 square feet that has been backfilled or re-leased to a subtenant as of September 30, 2026, but has not yet commenced. (6) Represents estimated achievement of revenue recognition for the associated lease agreements. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 18 Leases Executed (1)
Page 25
Quarter to Date Year to Date Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 2026 2025 Recurring Capital Expenditures: (1) Capital Improvements $ 8,451 $ 6,576 $ 2,974 $ 10,068 $ 9,529 $ 18,001 $ 29,712 Tenant Improvements & Leasing Commissions 38,587 21,535 15,769 21,656 27,430 75,891 58,665 Total $ 47,038 $ 28,111 $ 18,743 $ 31,724 $ 36,959 $ 93,892 $ 88,377 Average Capital Expenditures to Average NOI Ratio - Trailing Five Quarters 18.1 % Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 2026 2025 Major Repositioning Capital Expenditures: (2) Capital Improvements $ — $ — $ — $ 60 $ 39 $ — $ 834 Total $ — $ — $ — $ 60 $ 39 $ — $ 834 Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 2026 2025 First Generation Capital Expenditures: Tenant Improvements & Leasing Commissions $ 21,372 $ 14,738 $ 8,980 $ 5,098 $ 4,268 $ 45,090 $ 14,016 Total $ 21,372 $ 14,738 $ 8,980 $ 5,098 $ 4,268 $ 45,090 $ 14,016 ________________________ (1) Includes 100% of consolidated property partnerships. (2) Represents significant non-recurring capital expenditures for repositioning space that is expected to result in additional revenue generated when the space is re-leased. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 19 Stabilized Portfolio Capital Expenditures ($ in thousands)
Page 26
Square Feet 35,367 240,343 984,628 1,108,764 1,523,523 1,764,229 2,673,822 1,334,536 1,187,351 721,346 637,974 859,207 295,145 90,56993,217 240,343 505,697 Q4 Q3 Q2 Q1 MTM 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 and beyond — 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 # of Expiring Leases 22 67 77 70 73 79 28 23 21 17 32 % of Total Leased Sq. Ft. 1.8 % 7.6 % 8.5 % 11.7 % 13.5 % 20.5 % 10.2 % 9.2 % 5.5 % 4.9 % 6.6 % ABR $10,710 $36,146 $68,070 $80,152 $106,144 $164,652 $87,249 $69,878 $47,294 $36,991 $60,523 % of Total ABR 1.4 % 4.7 % 8.9 % 10.4 % 13.8 % 21.4 % 11.4 % 9.1 % 6.2 % 4.8 % 7.9 % ABR per Sq. Ft. $44.56 $36.71 $61.39 $52.61 $60.16 $61.58 $65.38 $58.85 $65.56 $57.98 $70.44 ________________________ (1) Represents all in-place leases as of September 30, 2026, excluding intercompany leases. (2) Adjusting for leases that have been backfilled or re-leased to a subtenant as of September 30, 2026 but not yet commenced, the 2026, 2027, 2028, and 2031 expirations would be reduced by 86,875, 26,143, 53,394, and 30,608 square feet, respectively. (3) Includes 100% of consolidated property partnerships. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 20 Stabilized Portfolio Lease Expirations (1) (2) (3) ($ in thousands, except for Annualized Base Rent per sq. ft.)
Page 27
Year Region # of Expiring Leases Total Square Feet % of Total Leased Sq. Ft. Annualized Base Rent % of Total Annualized Base Rent Annualized Base Rent per Sq. Ft. 2026 San Francisco Bay Area 3 19,545 0.1 % $ 1,197 0.2 % $ 61.24 Los Angeles 13 106,052 0.9 % 3,729 0.5 % 35.16 Seattle 4 109,332 0.8 % 5,464 0.7 % 49.98 San Diego 2 5,414 — % 320 — % 59.11 Austin — — — % — — % — Total 22 240,343 1.8 % $ 10,710 1.4 % $ 44.56 2027 San Francisco Bay Area 5 34,600 0.3 % $ 1,347 0.2 % $ 38.93 Los Angeles 46 794,446 6.1 % 27,453 3.6 % 34.56 Seattle 9 69,446 0.5 % 2,119 0.3 % 30.51 San Diego 7 86,136 0.7 % 5,227 0.6 % 60.68 Austin — — — % — — % — Total 67 984,628 7.6 % $ 36,146 4.7 % $ 36.71 2028 San Francisco Bay Area 14 623,426 4.8 % $ 40,773 5.4 % $ 65.40 Los Angeles 43 207,793 1.6 % 12,321 1.6 % 59.29 Seattle 8 91,050 0.7 % 4,008 0.5 % 44.02 San Diego 12 186,495 1.4 % 10,968 1.4 % 58.81 Austin — — — % — — % — Total 77 1,108,764 8.5 % $ 68,070 8.9 % $ 61.39 2029 San Francisco Bay Area 16 583,477 4.5 % $ 31,960 4.2 % $ 54.78 Los Angeles 24 439,892 3.4 % 22,818 3.0 % 51.87 Seattle 12 243,270 1.9 % 10,897 1.3 % 44.79 San Diego 17 252,673 1.9 % 14,242 1.9 % 56.37 Austin 1 4,211 — % 235 — % 55.81 Total 70 1,523,523 11.7 % $ 80,152 10.4 % $ 52.61 2030 San Francisco Bay Area 16 856,319 6.6 % $ 55,157 7.2 % $ 64.41 Los Angeles 21 232,023 1.8 % 13,765 1.7 % 59.33 Seattle 9 459,089 3.5 % 21,656 2.8 % 47.17 San Diego 26 211,344 1.6 % 15,161 2.0 % 71.74 Austin 1 5,454 — % 405 0.1 % 74.26 Total 73 1,764,229 13.5 % $ 106,144 13.8 % $ 60.16 2031 and Beyond San Francisco Bay Area 39 2,703,793 20.8 % $ 210,297 27.3 % $ 77.78 Los Angeles 64 1,198,127 9.1 % 68,153 8.9 % 56.88 Seattle 34 1,402,508 10.7 % 61,627 8.0 % 43.94 San Diego 45 1,488,507 11.4 % 97,824 13.0 % 65.72 Austin 18 621,301 4.9 % 28,686 3.6 % 46.17 Total 200 7,414,236 56.9 % $ 466,587 60.8 % $ 62.93 ________________________ (1) Includes 100% of consolidated property partnerships. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 21 Stabilized Portfolio Lease Expirations by Region (1) ($ in thousands, except for Annualized Base Rent per sq. ft.)
Page 28
# Tenant Name Region Annualized Base Rental Revenue Rentable Square Feet Percentage of Total Annualized Base Rental Revenue Percentage of Total Rentable Square Feet Year(s) of Significant Lease Expiration(s) (3) Weighted Average Remaining Lease Term (Years) 1 Global technology company Seattle / San Diego $ 44,696 849,826 5.8 % 5.0 % 2032 / 2033 / 2037 6.8 2 Cruise LLC San Francisco Bay Area 35,449 374,618 4.6 % 2.2 % 2031 5.2 3 Stripe, Inc. San Francisco Bay Area 33,110 425,687 4.3 % 2.5 % 2034 7.8 4 Adobe Systems, Inc. San Francisco Bay Area / Seattle 27,917 537,368 3.6 % 3.1 % 2027 (4) / 2031 4.6 5 Box, Inc. San Francisco Bay Area 25,334 296,613 3.3 % 1.7 % 2028 (5) / 2040 11.6 6 Salesforce, Inc. San Francisco Bay Area / Seattle 24,706 472,016 3.2 % 2.8 % 2029 / 2030 / 2032 3.6 7 Okta, Inc. San Francisco Bay Area 24,206 293,001 3.2 % 1.7 % 2028 2.1 8 DoorDash, Inc. San Francisco Bay Area 23,842 236,759 3.1 % 1.4 % 2032 5.3 9 Netflix, Inc. Los Angeles 21,854 361,388 2.9 % 2.1 % 2032 5.8 10 Cytokinetics, Inc. San Francisco Bay Area 18,167 234,892 2.4 % 1.4 % 2033 7.1 11 DIRECTV, LLC Los Angeles 16,085 532,956 2.1 % 3.1 % 2026 / 2027 (6) 0.9 12 Tandem Diabetes Care, Inc. San Diego 15,884 181,949 2.1 % 1.1 % 2035 8.6 13 Synopsys, Inc. San Francisco Bay Area 15,492 342,891 2.0 % 2.0 % 2030 3.9 14 Neurocrine Biosciences, Inc. San Diego 14,397 273,021 1.9 % 1.6 % 2029 / 2031 4.5 15 Viacom International, Inc. Los Angeles 13,718 220,330 1.8 % 1.3 % 2028 2.3 16 Indeed, Inc. Austin CBD 13,430 330,394 1.8 % 1.9 % 2034 8.3 17 Sony Group Corporation San Francisco Bay Area / Los Angeles 13,397 131,642 1.7 % 0.8 % 2030 3.5 18 Amazon.com Seattle 12,921 283,979 1.7 % 1.7 % 2030 3.4 19 Nektar Therapeutics, Inc. San Francisco Bay Area 12,297 135,974 1.6 % 0.8 % 2030 3.3 20 Splunk, Inc. San Francisco Bay Area 10,323 100,850 1.3 % 0.6 % 2031 5.2 Total Top 20 Tenants $ 417,225 6,616,154 54.4 % 38.8 % 5.0 ________________________ (1) Includes subsidiaries of the tenant listed. (2) The information presented is based on Annualized Base Rent as of September 30, 2026 and includes 100% of consolidated property partnerships. (3) Significant lease expirations include those greater than 25,000 rentable square feet. (4) The 2027 lease expiration represents 31,409 rentable square feet that expires on June 30, 2027. (5) The 2028 lease expiration represents 53,676 square feet that expires on June 30, 2028, of which 26,859 square feet has been re-leased, commencing on July 1, 2028. (6) The 2026 lease expiration represents 49,255 rentable square feet that expired on September 30, 2026, and the 2027 lease expiration represents the remaining 483,701 rentable square feet that expires on September 30, 2027. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 22 Top 20 Tenants (1) (2) ($ in thousands)
Page 29
Annualized Base Rent Square Feet Technology, 51% Media, 6% Professional, Business, and Other Services, 9% Finance, Insurance, and Real Estate, 7% Life Science and Health Care, 19% Other, 8% Technology, 48% Media, 8% Professional, Business, and Other Services, 10% Finance, Insurance, and Real Estate, 7% Life Science and Health Care, 17% Other, 10% ________________________ (1) Based on the North American Industry Classification System as of September 30, 2026. (2) Includes 100% of consolidated property partnerships. Based on occupied square footage in the Stabilized Portfolio as of September 30, 2026, excluding month-to-month and intercompany leases. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 23 Tenant Industry Diversification (1) (2)
Page 30
Submarket Month of Acquisition Acreage Purchase Price (1) 1st Quarter Land 1900 Broadway (2) Other Peninsula February 1.1 $ 36.0 2nd Quarter None — — 3rd Quarter None — — Total 1.1 $ 36.0 ________________________ (1) Excludes acquisition-related costs and purchase price credits. (2) During the three months ended March 31, 2026, acquired an interest in a fully-entitled land site that can support a 251,000-square-foot office building. Concurrent with closing, signed a 20-year lease with Cooley LLP for approximately 145,000 square feet, bringing the project to 58% leased. Our joint venture partner contributed $9.0 million toward the purchase of the land. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 24 2026 Acquisitions ($ in millions)
Page 31
Operating Property Dispositions Submarket Month of Disposition Number of Buildings Rentable Square Feet / No. of Units Sales Price (1) 1st Quarter Office Kilroy Sabre Springs (2) I-15 Corridor January 3 427,764 $ 124.5 12348 High Bluff Drive (Del Mar Tech Center) Del Mar March 1 39,192 21.0 Total 4 466,956 $ 145.5 2nd Quarter Residential Hollywood Residential Properties (3) Hollywood April 393 units $ 202.0 3rd Quarter None — — — Total Office and Residential $ 347.5 Development Pipeline Under Contract (4) Submarket Acreage Under Contract Anticipated Sales Price (1) 1633 26th Street (5) West Los Angeles 2 acres $ 41.0 Santa Fe Summit - PA1 (5) 56 Corridor 5 acres 38.0 Santa Fe Summit - PA2 (5) 56 Corridor 17 acres 86.0 East Village (6) East Village 3 acres 19.5 Total Anticipated Proceeds $ 184.5 ________________________ (1) Represents actual or anticipated gross sales price before the impact of commissions, closing costs, and purchase price credits. (2) Kilroy Sabre Springs includes the following buildings: 13480, 13500, and 13520 Evening Creek Drive North, San Diego, CA. (3) The Hollywood Residential Properties include the 200-unit Columbia Square Living property located at 1550 N. El Centro Avenue, Los Angeles, CA and the 193-unit Jardine property located at 6390 De Longpre Avenue, Los Angeles, CA. (4) Subject to purchase and sale agreements and non-refundable deposits as of the date of this filing. (5) Anticipated to close upon receipt of residential entitlements and permits, which is expected to occur beginning in phases in early 2027. (6) Anticipated to close during the fourth quarter. No impairment was recorded as of September 30, 2026 as the property did not meet held-for-sale criteria and was deemed recoverable based on a probability-weighted undiscounted future cash flow assessment. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 25 2026 Dispositions and Assets Under Contract ($ in millions)
Page 32
Property Venture Partner Submarket Portfolio Rentable Square Feet KRC Ownership % (1) 100 First Street, San Francisco, CA Norges Bank Investment Management San Francisco CBD Stabilized 480,457 56% 303 Second Street, San Francisco, CA Norges Bank Investment Management San Francisco CBD Stabilized 784,658 56% 900 Jefferson Avenue and 900 Middlefield Road, Redwood City, CA (2) Local developer Other Peninsula Stabilized 359,273 93% 1900 Broadway, Redwood City, CA Local developer Other Peninsula Development 251,000 97% Stabilized Portfolio Consolidated Venture Net Operating Income Reconciliation Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Cash Operating Revenues: Base rent $ 26,573 $ 25,307 $ 79,768 $ 79,637 Tenant reimbursements 4,157 4,390 11,916 11,849 Other revenues (3) 149 20 229 2,221 Settlement and restoration fee income 525 — 525 212 Other property income (4) 591 625 1,619 1,849 Total cash operating revenues 31,995 30,342 94,057 95,768 Cash Operating Expenses: Property expenses 7,421 6,776 20,581 20,059 Real estate taxes 2,345 2,283 6,919 6,743 Total cash operating expenses 9,766 9,059 27,500 26,802 Cash Net Operating Income 22,229 21,283 66,557 68,966 Deferred income and lease incentives, net (5) 215 370 957 1,112 Amortization of deferred revenue related to tenant-funded tenant improvements 412 482 1,284 1,416 Straight-line rents, net (421) 176 (2,734) (1,794) Net Operating Income 22,435 22,311 66,064 69,700 Lease termination fees 134 134 402 10,992 General and administrative expenses — (1) (18) (10) Leasing costs (79) (39) (142) (91) Other expense — — (1) (4) Interest income 87 — 87 — Depreciation and amortization (7,936) (8,045) (23,866) (24,599) Net Income $ 14,641 $ 14,360 $ 42,526 $ 55,988 KRC Share of Cash Net Operating Income (6) $ 14,606 $ 14,312 $ 43,189 $ 45,743 ________________________ (1) Reflects the KRC ownership percentage at time of agreement. For 900 Jefferson Avenue and 900 Middlefield Road, actual percentage may vary depending on cash flows or promote structure. For 1900 Broadway, reflects expected KRC ownership percentage upon completion of development activities. (2) For 900 Jefferson Avenue and 900 Middlefield Road, KRC and our partner receive an 8% preferred return on invested capital. Any cash flows received above that amount are shared with our partner as a 10% promote, with the remaining proceeds distributed according to our respective ownership percentages. (3) Primarily comprised of contractual parking income and net of revenues deemed uncollectible. (4) Primarily comprised of transient parking income. (5) Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. (6) Reflects KRC share after consolidating elimination entries. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 26 Consolidated Ventures (Noncontrolling Property Partnerships) (unaudited, $ in thousands)
Page 33
03 Development – Stabilized Development & Redevelopment Projects – In-Process Development & Redevelopment Projects – Future Development Pipeline Kilroy Oyster Point Phase 2, South San Francisco, CA
Page 34
% Leased Location Construction Start Date Stabilization Date (1) Rentable Square Feet Total Estimated Investment Total Project % Occupied As of 9/30/2026 As of Filing 1st Quarter 363, 365, and 369 Oyster Point Boulevard (Kilroy Oyster Point - Phase 2) South San Francisco 2Q 2021 1Q 2026 871,738 $ 1,175 7% 49% 49% 2nd Quarter None — — —% —% —% 3rd Quarter None — — —% —% —% Total 871,738 $ 1,175 7% 49% 49% ________________________ (1) Represents the earlier of the date the project achieves 95% occupancy or one year from substantial completion of base building components. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 28 Stabilized Development & Redevelopment Projects ($ in millions)
Page 35
% Leased UNDER CONSTRUCTION Location Construction Start Date Estimated Stabilization Date Estimated Rentable Square Feet Total Estimated Investment Total Cash Costs Incurred As of 9/30/2026 As of Filing None — $ — $ — —% —% Total — $ — $ — —% —% Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 29 In-Process Development & Redevelopment Projects ($ in millions)
Page 36
Location Approx. Developable Square Feet / Resi Units (1) Cost Basis, Net (2) San Francisco Bay Area Flower Mart San Francisco CBD 2,300,000 $ 690 Kilroy Oyster Point - Phases 3 and 4 South San Francisco 875,000 - 1,000,000 253 1900 Broadway (3) Other Peninsula 251,000 78 Los Angeles 1633 26th Street (4) West Los Angeles 190,000 17 Seattle SIXO Lake Union / Denny Regrade 925,000 and 650 units 197 San Diego Santa Fe Summit (4) 56 Corridor 600,000 - 650,000 118 2045 Pacific Highway Little Italy / Point Loma 275,000 52 Kilroy East Village (4) East Village 1,100 units 63 Austin Stadium Tower Stadium District / Domain 493,000 76 Total $ 1,544 ________________________ (1) Project scope, including the estimated developable square feet or number of residential units, could change materially from estimates provided due to one or more of the following: significant changes in the economy, market conditions, tenant requirements and demands, construction costs, new supply, regulatory and entitlement processes, or project design. (2) Represents costs incurred as of September 30, 2026, net of environmental liability obligations, asset retirement obligations, and municipal bonds proceeds received related to public infrastructure improvements. (3) Owned in a consolidated joint venture. Project is 58% pre-leased and is anticipated to commence construction in 2027, with delivery scheduled for 2030, at which time the Company’s ownership interest is expected to be 97%. (4) Subject to signed purchase and sale agreements and non-refundable deposits as of the date of this filing. Refer to page 25 “2026 Dispositions and Assets Under Contract” for additional information. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 30 Future Development Pipeline ($ in millions)
Page 37
04 Debt & Capitalization Data – Capital Structure – Debt Maturities – Debt Covenants & Leverage Ratios Blackwelder, Culver City, CA
Page 38
Shares / Units Aggregate Principal Amount or $ Value Equivalent % of Total Market Capitalization Stated Rate (1) Effective Rate (2) Maturity Date Unsecured Debt Revolving Credit Facility (3) $ 40,000 0.5 % 4.90 % 4.90 % 7/31/2030 Term Loan Facility (4) 200,000 2.4 % 5.05 % 5.18 % 7/31/2031 Private Placement Senior Notes Series A due 2027 175,000 2.1 % 3.35 % 3.42 % 2/17/2027 Private Placement Senior Notes Series B due 2029 75,000 0.9 % 3.45 % 3.51 % 2/17/2029 Private Placement Senior Notes due 2031 350,000 4.2 % 4.27 % 4.32 % 1/31/2031 Senior Notes due 2028 (5) 400,000 4.8 % 4.75 % 4.87 % 12/15/2028 Senior Notes due 2029 400,000 4.8 % 4.25 % 4.38 % 8/15/2029 Senior Notes due 2030 500,000 6.0 % 3.05 % 3.17 % 2/15/2030 Senior Notes due 2032 (5) 425,000 5.1 % 2.50 % 2.63 % 11/15/2032 Senior Notes due 2033 (5) 450,000 5.4 % 2.65 % 2.73 % 11/15/2033 Senior Notes due 2035 400,000 4.8 % 5.88 % 6.08 % 10/15/2035 Senior Notes due 2036 400,000 4.8 % 6.25 % 6.41 % 1/15/2036 $ 3,815,000 45.8 % 4.14 % 4.48 % Secured Debt (6) 100 Hooper St., San Francisco Bay Area $ 145,834 1.8 % 3.57 % 3.81 % 12/1/2026 320 Westlake Ave. N. and 321 Terry Ave. N., Seattle 74,761 0.9 % 4.48 % 4.58 % 7/1/2027 One Paseo Mixed-Use Campus, San Diego 375,000 4.5 % 5.90 % 6.13 % 8/10/2034 $ 595,595 7.2 % 5.15 % 5.37 % Total Debt $ 4,410,595 53.0 % 4.27 % 4.60 % Equity and Noncontrolling Interest in the Operating Partnership (7) Common limited partnership units outstanding (8) 1,133,562 $ 37,714 0.5 % Shares of common stock outstanding 116,308,988 3,869,600 46.5 % Total Equity and Noncontrolling Interest in the Operating Partnership $ 3,907,314 47.0 % Total Market Capitalization $ 8,317,909 100.0 % ________________________ (1) The unsecured revolving credit facility and unsecured term loan facility's interest rates were calculated using the Secured Overnight Financing Rate (“SOFR”) and a margin of 1.000% and 1.150%, respectively, based on the Company’s credit rating, as of September 30, 2026. All other stated rates represent fixed interest rates. (2) Includes the impact of an unused facility fee, amortization of deferred financing costs, and amortization of premiums/discounts. (3) The unsecured revolving credit facility has a total borrowing capacity of $1.25 billion and two available six-month extension options. (4) The unsecured term loan facility has a total borrowing capacity of $250.0 million. The additional $50.0 million of term loan capacity consists of delayed-draw commitments that may be drawn upon through June 11, 2027. (5) Green bond. (6) The mortgage notes are secured by the properties listed. (7) Value based on closing share price of $33.27 as of September 30, 2026. (8) Includes common units of the Operating Partnership not owned by the Company. Excludes noncontrolling interests in consolidated property partnerships. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 32 Capital Structure As of September 30, 2026 ($ in thousands)
Page 39
Unsecured Bonds Unsecured Private Placement NotesUnsecured Green Bonds Secured Debt Unsecured Term Loan Unsecured Line of Credit 2026 2027 2028 2029 2030 (1) 2031 (2) 2032 2033 2034 2035 2036 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Total Debt (3) $146,470 $249,125 $400,000 $475,000 $540,000 $550,000 $425,000 $450,000 $375,000 $400,000 $400,000 Weighted Average Stated Rate 3.57% 3.69% 4.75% 4.12% 3.19% 4.55% 2.50% 2.65% 5.90% 5.88% 6.25% % of Total 3% 6% 9% 11% 12% 12% 10% 10% 9% 9% 9% ________________________ (1) The unsecured revolving credit facility has a total borrowing capacity of $1.25 billion and two available six-month extension options. (2) The unsecured term loan facility has a total borrowing capacity of $250.0 million. The additional $50.0 million of term loan capacity consists of delayed-draw commitments that may be drawn upon through June 11, 2027. (3) Includes scheduled principal payments for amortizing loans. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 33 Debt Maturities As of September 30, 2026 ($ in thousands)
Page 40
KEY DEBT COVENANTS (1) Covenant Actual Performance as of September 30, 2026 Unsecured Credit and Term Loan Facilities and Private Placement Notes: Total debt to total asset value less than 60% 33% Fixed charge coverage ratio greater than 1.5x 3.1x Unsecured debt ratio greater than 1.67x 2.88x Unencumbered asset pool debt service coverage greater than 1.75x 3.58x Unsecured Senior Notes due 2028, 2029, 2030, 2032, 2033, 2035, and 2036: Total debt to total asset value less than 60% 34% Interest coverage greater than 1.5x 4.2x Secured debt to total asset value less than 40% 5% Unencumbered asset pool value to unsecured debt greater than 150% 307% NET DEBT TO COMPANY'S SHARE OF EBITDAre RATIOS 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 Total principal amount of debt $ 4,410,595 $ 4,572,227 $ 4,623,842 $ 4,625,442 $ 4,627,026 Cash and cash equivalents (94,301) (253,805) (192,904) (179,316) (372,416) Net debt $ 4,316,294 $ 4,318,422 $ 4,430,938 $ 4,446,126 $ 4,254,610 Trailing 12-months Company's Share of EBITDAre (2)(3) $ 597,206 $ 615,742 $ 631,178 $ 637,314 $ 660,337 Trailing 12-months Company's Share of Adjusted EBITDAre (2)(3) $ 592,180 $ 608,217 $ 624,388 $ 630,344 $ 650,782 Net Debt to Company's Share of EBITDAre Ratio 7.2x 7.0x 7.0x 7.0x 6.4x Net Debt to Company's Share of Adjusted EBITDAre Ratio 7.3x 7.1x 7.1x 7.1x 6.5x ________________________ (1) All covenant ratio titles utilize terms and are calculated as defined in the respective debt and credit agreements. (2) Calculated as the sum of the Company's Share of EBITDAre and Adjusted EBITDAre for the trailing four quarters. (3) Refer to page 45 for reconciliations of historical GAAP Net Income Available to Common Stockholders to EBITDAre for the three months ended June 30, 2025, March 31, 2025, and December 31, 2024. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 34 Debt Covenants & Leverage Ratios ($ in thousands)
Page 41
05 Non-GAAP Supplemental Measures West8, Seattle, WA
Page 42
This section includes management’s statements regarding certain non-GAAP financial measures provided in this supplemental financial report and, with respect to Funds From Operations available to common stockholders and common unitholders (“FFO”), in the Company’s earnings release on October 22, 2026 and the reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations. Net Operating Income: Management believes that Net Operating Income (“NOI”) is a useful supplemental measure of the Company’s operating performance. The Company’s NOI metrics are defined as follows: • Net Operating Income - Consolidated operating revenues comprised of rental income and other property income, excluding lease termination fees, less consolidated property and related expenses (property expenses, real estate taxes, and ground leases). • Cash Net Operating Income - NOI adjusted for certain non-cash amounts (e.g. straight-line rents, net, amortization of deferred revenue related to tenant- funded tenant improvements, deferred income and lease incentives, net, deferred settlement and restoration fee income, the amortization of net below market rents, and related provision for bad debts). • Same Property Cash Net Operating Income - Cash NOI for all of the properties that were owned and included in the Company’s Stabilized Portfolio for two comparable reporting periods. The Company excludes lease termination fees from the calculation of rental revenue for the Company’s NOI metrics as they are non-recurring in nature and their exclusion provides a measure that the Company believes is more indicative of its operating performance. Other real estate investment trusts (“REITs”) may use different methodologies for calculating NOI, Cash NOI, and Same Property Cash NOI, and accordingly, the Company’s NOI metrics may not be comparable to other REITs. The Company uses these NOI metrics to evaluate its operating performance on a portfolio basis since the NOI metrics allow the Company to evaluate the impact that factors such as occupancy levels, lease structure, rental rates, and tenant base have on the Company’s results, margins and returns. In addition, management believes that its NOI metrics provide useful information to the investment community about the Company’s financial and operating performance when compared to other REITs since NOI, Cash NOI, and Same Property Cash NOI are generally recognized as standard measures of performance in the real estate industry. Because the Company’s NOI metrics exclude lease termination fees, leasing costs, general and administrative expenses, interest expense, depreciation and amortization, other income and expenses, impairment of real estate assets, and gains and losses, they provide performance measures that, when compared year over year, reflect the consolidated revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. Additionally, because Same Property Cash NOI excludes the change in Cash NOI from developed, redeveloped, acquired, disposed of, and held-for-sale properties, it highlights operating trends on a cash basis such as occupancy levels, rental rates, and operating costs on properties. The Company’s NOI metrics should not be viewed as alternative measures of the Company’s financial performance since they do not reflect general and administrative expenses, leasing costs, lease termination fees, interest expense, depreciation and amortization costs, other nonproperty income and losses and the level of capital expenditures necessary to maintain the operating performance of the Company’s properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact the Company’s results from operations. In addition, Same Property Cash NOI should not be viewed as an alternative measure of the Company’s financial performance since it does not reflect the operations of the Company's entire portfolio. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 36 Management Statements on Non-GAAP Supplemental Measures
Page 43
EBITDAre, Company's Share of EBITDAre, and Company's Share of Adjusted EBITDAre: The Company calculates Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) in accordance with the 2017 White Paper on EBITDAre approved by the Board of Governors of Nareit. Management believes that consolidated earnings before interest expense, tax expense, depreciation and amortization, gain/loss on early extinguishment of debt, gains and losses on the sale of depreciable real estate and non-real estate assets, net income attributable to noncontrolling interests, preferred dividends and distributions, original issuance costs of redeemed preferred stock and preferred units, and impairment losses (EBITDAre) is a useful supplemental measure of the Company’s operating performance. When considered with other GAAP measures and FFO, management believes EBITDAre gives the investment community a more complete understanding of the Company’s consolidated operating results, including the impact of general and administrative expenses and acquisition-related expenses, before the impact of investing and financing transactions and facilitates comparisons with competitors. Management also believes it is appropriate to present EBITDAre as it is used in several of the Company’s financial covenants for both its secured and unsecured debt. However, EBITDAre should not be viewed as an alternative measure of the Company’s operating performance since it excludes financing costs as well as depreciation and amortization costs, which are significant economic costs that could materially impact the Company’s results of operations and liquidity. Other REITs may use different methodologies for calculating EBITDAre and, accordingly, the Company’s EBITDAre calculation may not be comparable to those of other REITs. The Company’s Share of EBITDAre is EBITDAre less amounts attributable to noncontrolling interests in consolidated property partnerships. The Company’s Share of Adjusted EBITDAre is the Company’s share of EBITDAre less interest income. Net Debt to Company's Share of EBITDAre Ratio and Net Debt to Company's Share of Adjusted EBITDAre Ratio: Management believes that the ratios of the principal balance of debt, less cash and cash equivalents and certificates of deposit, divided by the Company’s share of EBITDAre as well as the Company's share of Adjusted EBITDAre are useful supplemental measures of the level of borrowed capital being used to increase the potential return of the Company’s real estate investments and proxies for a measure management believes is used by many lenders and rating agencies to evaluate the Company’s ability to repay and service its debt obligations. The Company believes the ratios are beneficial disclosure to investors as supplemental means of evaluating its ability to meet obligations senior to those of the equity holders. Other REITs may use different methodologies for calculating these ratios and, accordingly, the Company’s Net Debt to Company’s Share of EBITDAre Ratio and Net Debt to Company's Share of Adjusted EBITDAre Ratio may not be comparable to those of other REITs. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 37 Management Statements on Non-GAAP Supplemental Measures, continued
Page 44
Funds From Operations: The Company calculates Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of Nareit. The White Paper defines FFO as net income or loss (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO. The calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. The Company also adds back net income attributable to noncontrolling common units of the Operating Partnership because it reports FFO attributable to common stockholders and common unitholders. Management believes that FFO is a useful supplemental measure of the Company’s operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of the Company’s activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, the Company’s FFO may not be comparable to those of other REITs. Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, management believes that FFO along with the required GAAP presentations provides a more complete measurement of the Company’s performance relative to its competitors and a more appropriate basis on which to make decisions involving operating, financing, and investing activities than the required GAAP presentations alone would provide. FFO should not be viewed as an alternative measure of the Company’s operating performance since it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties, which are significant economic costs and could materially impact the Company’s results from operations. Funds Available for Distribution: Management believes that Funds Available for Distribution available to common stockholders and common unitholders (“FAD”) is a useful supplemental measure of the Company’s liquidity. The Company computes FAD by adjusting FFO for recurring tenant improvements, leasing commissions, and capital expenditures, amortization of deferred revenue related to tenant-funded tenant improvements, straight-line rents, net, amortization of net above (below) market rents for acquisition properties, non-cash amortization of deferred financing costs and net debt discounts and premiums, non-cash amortization of share-based compensation awards, lease related adjustments (including non-cash ground rent expense beginning in Q1 2026), gains and losses on sales of non-real estate assets, and amounts attributable to noncontrolling interests in consolidated property partnerships. FAD provides an additional perspective on the Company’s ability to fund cash needs and make distributions to stockholders by adjusting FFO for the impact of certain cash and non-cash items, as well as adjusting FFO for recurring capital expenditures and leasing costs. Management also believes that FAD provides useful information to the investment community about the Company’s financial position as compared to other REITs since FAD is a liquidity measure used by other REITs. However, other REITs may use different methodologies for calculating FAD and, accordingly, the Company’s FAD may not be comparable to those of other REITs. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 38 Management Statements on Non-GAAP Supplemental Measures, continued
Page 45
06 Definitions & Reconciliations 2100 Kettner, San Diego, CA
Page 46
Annualized Base Rent: Annualized monthly contractual base rents from existing tenants in occupancy, including the impact of the straight-lining of rent escalations and the amortization of free rent periods and excluding the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue. Amounts represent percentage of total portfolio annualized contractual base rental revenue. Capital Expenditures: Expenditures for capital improvements, tenant improvements costs (excluding tenant-funded tenant improvements), and leasing commissions. Effective Rate: Represents the Stated Rate, including the impact of the amortization of any premiums/discounts and debt issuance costs. Estimated Stabilization Date (Development): Management’s estimation of the earlier of stabilized occupancy (95%) or one year from the date of the cessation of major base building construction activities for office, life science, and retail properties, and the date of substantial completion for residential properties. FAD Payout Ratio: Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted stock unitholders) divided by FAD. First Generation ("1st Gen") Capital Expenditures: Capital expenditures for space not yet leased at recently completed Development and Redevelopment Properties that have been added to the Stabilized Portfolio. Does not include expenditures for In-Process development and Redevelopment Projects or acquisition properties. These costs are not subtracted in the calculation of FAD. 1st Gen Leasing: New leasing activity on vacant space at recently completed Development, Redevelopment, and properties classified as Major Repositioning that have been added to the Stabilized Portfolio. Also includes new leasing activity at space that was vacant upon acquisition. Fixed Charge Coverage Ratio - Company’s Share of EBITDAre: Calculated as Company’s Share of current period EBITDAre divided by gross interest expense (excluding amortization of deferred debt issuance costs and debt discounts/premiums) and current year accrued preferred dividends. FFO Payout Ratio: Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted stock unitholders) divided by FFO attributable to common stockholders and unitholders. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 40 Definitions Included in Supplemental
Page 47
GAAP Rent: Rental revenue recognized on a straight-line basis over the lease term, including the impact of contractual rent escalations, free rent periods, and amortization for lease incentives due under existing leases. Gross Lease Types: Represents leases where the landlord is obligated to pay the tenant's proportionate share of certain operating expenses. Interest Coverage Ratio: Calculated as EBITDAre divided by gross interest expense (excluding amortization of deferred debt costs and debt premiums/discounts). Major Repositioning: Space for which significant non-recurring capital expenditures are incurred to reposition and is expected to result in additional revenue generated when re- leased. Capital improvements for this space are not subtracted in the calculation of FAD. Tenant improvement and leasing commissions for this space are included in 2nd Gen Capital Expenditures. Net Lease Types: Represents leases where the tenant is obligated to pay a share of certain operating expenses. Net Operating Income Margin: Calculated as Net Operating Income divided by total revenues. Percentage Leased Represents Percentage Occupied, adjusted for leases executed but have not yet achieved revenue recognition. Percentage Occupied Represents economic occupancy for space that has achieved revenue recognition for the associated lease agreements. Recurring Capital Expenditures: Recurring capital expenditures related to previously leased space and space at acquired operating properties in the Stabilized Portfolio. Also includes tenant improvements, leasing commissions, market ready, and spec suite capital expenditures for properties classified as Major Repositioning. These recurring costs are subtracted in the calculation of FAD. Redevelopment Properties/Projects: Properties or projects for which the Company expects to spend significant development and construction costs pursuant to a formal plan to change its use. Rentable Square Feet: Reflects the latest Building Owners and Managers Association (“BOMA”) measurement. All occupied and leased percentages presented throughout this report are calculated based on rentable square feet at the end of the period(s) presented. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 41 Definitions Included in Supplemental, continued
Page 48
Retention Rate (Leases Executed): Calculated as the percentage of square footage renewed by existing tenants at lease expiration or termination divided by the square footage of space renewed by existing tenants and lease expirations during the period. Excludes square footage of short-term leases. Retention Rate (Leases Executed Including Subtenants): Retention rate, inclusive of leases with subtenants where the Company does not expect to experience downtime in occupancy between leases. Same Property Portfolio: The Same Property Portfolio includes all properties owned and included in the Stabilized Portfolio for two comparable reporting periods, i.e., owned and included in the Stabilized Portfolio as of January 1, 2025 and still owned and included in the Stabilized Portfolio as of September 30, 2026. It includes the residential portfolio, which consists of the 608 residential units at the Company’s One Paseo mixed-use property in the Del Mar, California submarket. Excludes undeveloped land, development and Redevelopment Properties currently committed for construction, under construction, or in the tenant improvement phase, and properties classified as held for sale. Same Property Portfolio Rollforward Number of Buildings Square Feet Same Property Portfolio as of December 31, 2025 112 15,549,413 Stabilized Acquisition Properties Added (1) 2 103,731 Dispositions and Held for Sale (2) (1) (39,192) Remeasurements — 21,703 Same Property Portfolio as of September 30, 2026 113 15,635,655 Stabilized Development Property Excluded from Same Property 5 972,877 Stabilized Acquisition Properties Excluded from Same Property 5 538,532 Stabilized Portfolio as of September 30, 2026 123 17,147,064 ________________________ (1) One Paseo Junction was added to the Same Property Portfolio in 2026. (2) Excludes the two residential properties classified as held for sale as of March 31, 2026 and disposed of in April 2026, measured in units, as well as Kilroy Sabre Springs, which was classified as held for sale as of December 31, 2025 and not included in the Same Property Portfolio. Second Generation ("2nd Gen") Leasing Leasing at properties in the Stabilized Portfolio related to space that has been previously leased. All renewals are considered 2nd Gen leasing. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 42 Definitions Included in Supplemental, continued
Page 49
Stabilized Portfolio: The Stabilized Portfolio includes all properties with the exception of the development and Redevelopment Properties currently committed for construction, under construction, or in the tenant improvement phase, undeveloped land, and properties classified as held for sale. Stabilized Portfolio Rollforward (1) Number of Buildings Square Feet Stabilized Portfolio as of December 31, 2025 121 16,292,164 Stabilized Development Properties 3 871,738 Dispositions (2) (1) (39,192) Remeasurements — 22,354 Stabilized Portfolio as of September 30, 2026 123 17,147,064 ________________________ (1) Excludes our residential property measured in units. (2) Excludes Kilroy Sabre Springs, which was classified as held for sale as of December 31, 2025 and not included in the Stabilized Portfolio, and the two residential properties disposed of in April 2026, measured in units. Stated Rate: The rate at which interest expense is recorded per the respective loan documents. Straight-Line Rents, Net: Represents the straight-line rent income recognized during the period offset by cash received during the period that was applied to deferred rents receivable balances for terminated leases and the provision for bad debts recorded for deferred rent receivable balances. Tenant Improvement Phase: Represents projects that have reached cold shell condition and are ready for tenant improvements, which may require additional major base building modifications before being placed in service. Total Debt Represents the gross aggregate principal amount due as of September 30, 2026. Excludes unamortized deferred financing costs for the unsecured revolving credit and term loan facilities, unsecured senior notes, and secured debt, and unamortized discounts for the unsecured senior notes. Total Portfolio: The Total Portfolio includes all properties, with the exception of the Development and Redevelopment Properties currently committed for construction, under construction, or in the tenant improvement phase, and undeveloped land. Total Portfolio Number of Buildings Square Feet Stabilized Portfolio 123 17,147,064 Total Portfolio as of September 30, 2026 123 17,147,064 Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 43 Definitions Included in Supplemental, continued
Page 50
Three Months Ended Nine Months Ended 9/30/2026 9/30/2025 9/30/2026 9/30/2025 Net Income Available to Common Stockholders $ 15,506 $ 156,220 $ 16,144 $ 263,677 Net income available to noncontrolling common units of the Operating Partnership 151 1,524 159 2,562 Net income attributable to noncontrolling interests in consolidated property partnerships 4,612 4,538 14,008 19,292 Net Income 20,269 162,282 30,311 285,531 Adjustments: Impairment of real estate assets — — 61,778 — Gains on sales of depreciable operating properties — (110,484) (23,525) (127,038) Depreciation and amortization 93,165 87,487 281,069 262,231 Interest expense 39,376 32,152 119,521 94,144 Interest income (620) (3,119) (2,821) (4,765) Other (income) expense (83) (91) (224) (124) Leasing costs 2,980 2,610 8,804 7,760 General and administrative expenses 18,408 18,247 58,040 53,623 Lease termination fees (315) (309) (1,077) (11,569) Net Operating Income 173,180 188,775 531,876 559,793 Other (2) 69 78 206 234 Deferred settlement and restoration fee income — 2,026 — — Amortization of net below market rents (682) (764) (1,974) (2,455) Straight-line rents, net 2,832 1,303 3,633 9,270 Amortization of deferred revenue related to tenant-funded tenant improvements (3,353) (3,639) (9,886) (11,097) Deferred income and lease incentives, net (3) (614) (707) (2,639) (2,312) Cash Net Operating Income 171,432 187,072 521,216 553,433 Non-Same Property Cash Net Operating Income (814) (13,933) (5,742) (41,064) Same Property Cash Net Operating Income $ 170,618 $ 173,139 $ 515,474 $ 512,369 ________________________ (1) Based upon the Same Property Portfolio as of September 30, 2026, which was comprised of 113 properties. (2) Includes other non-cash amounts primarily related to ground rent expense. (3) Includes non-cash adjustments attributable to lease-related matters, including GAAP revenue recognition timing differences. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 44 Reconciliation of Net Income Available to Common Stockholders to Same Property Cash Net Operating Income (1) (unaudited, $ in thousands)
Page 51
Three Months Ended 6/30/2025 3/31/2025 12/31/2024 Net Income $ 79,568 $ 43,681 $ 65,034 Interest expense 30,844 31,148 33,245 Depreciation and amortization 87,625 87,119 89,121 Taxes (1) 17 51 — Gain on sale of operating properties (16,554) — — Gain on sales of long-lived assets — — (5,979) EBITDAre 181,500 161,999 181,421 EBITDAre attributable to noncontrolling interests in consolidated property partnerships (13,586) (7,280) (7,843) Company's Share of EBITDAre 167,914 154,719 173,578 Interest income (512) (1,134) (4,790) Company's Share of Adjusted EBITDAre $ 167,402 $ 153,585 $ 168,788 ________________________ (1) Commencing in January 1, 2025, the Company began adjusting for taxes, which are included in Other income (expense) on the Company’s Consolidated Statement of Operations. EBITDAre and Adjusted EBITDAre for the period ending December 31, 2024 have not been conformed to our new presentation to maintain consistency with previously reported financial ratios. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 45 Reconciliation of Historical Net Income Available to Common Stockholders to Company’s Share of Adjusted EBITDAre (unaudited, $ in thousands)
Page 52
Three Months Ended Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 GAAP Net Cash Provided by Operating Activities $ 156,148 $ 78,207 $ 150,695 $ 109,078 $ 176,568 $ 385,050 $ 457,235 Adjustments: Recurring tenant improvements, leasing commissions, and capital expenditures (47,038) (28,111) (18,743) (31,724) (36,959) (93,892) (88,377) Depreciation of non-real estate furniture, fixtures, and equipment (1,428) (1,429) (1,459) (1,410) (1,407) (4,316) (4,173) Net changes in operating assets and liabilities (1) (39,387) 42,682 (30,811) 22,819 (31,579) (27,516) (24,642) Noncontrolling interests in consolidated property partnerships’ share of FFO and FAD (5,238) (7,100) (7,207) (6,177) (5,411) (19,545) (25,102) Cash adjustments related to investing and financing activities (251) (623) (1,369) (2,052) (273) (2,243) (1,017) Funds Available for Distribution $ 62,806 $ 83,626 $ 91,106 $ 90,534 $ 100,939 $ 237,538 $ 313,924 ________________________ (1) Primarily includes changes in the following assets and liabilities: marketable securities, current receivables, prepaid expenses and other assets, accounts payable, accrued expenses and other liabilities, rents received in advance, and tenant security deposits. Where Innovation Works Kilroy Realty Q3 2026 Supplemental Report | 46 Reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution (unaudited, $ in thousands)
Page 53
This Supplemental Financial Report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, among other things, information concerning lease expirations, debt maturities, potential investments, development and redevelopment activity, projected construction costs, dispositions, and other forward-looking financial data. In some instances, forward-looking statements can be identified by the use of forward-looking terminology such as “expect,” “future,” “will,” “would,” “pursue,” or “project”, and variations of such words and similar expressions that do not relate to historical matters. Forward-looking statements are based on Kilroy Realty Corporation’s current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of Kilroy Realty Corporation’s control. Accordingly, actual performance, results, and events may vary materially from those indicated or implied in the forward- looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including actual and potential tariffs and periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California, Texas, and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the media industry, may have on our tenants’ businesses; our ability to re-lease property at or above current market rates; reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer's office premises; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service, and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment, and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices, or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed, and Redeveloped properties; the ability to successfully complete development and Redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, governmental permits and authorizations for our development and Redevelopment properties; increases in anticipated capital expenditures, tenant improvement, and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations, or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers' financial condition, and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; and our ability to maintain our status as a REIT. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect Kilroy Realty Corporation’s business and financial performance, see the factors included under the caption “Risk Factors” in Kilroy Realty Corporation’s annual report on Form 10-K for the year ended December 31, 2025, and its other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. Kilroy Realty Corporation assumes no obligation to update any forward-looking statement made in this Supplemental Financial Report that becomes untrue because of subsequent events, new information, or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws. Where Innovation Works