Exhibit 99.1

Third Quarter 2002 Supplemental Financial Report

	Page
Company Background	1
Financial Highlights	2
Consolidated Balance Sheets	3
Consolidated Statements of Operations	4
Funds From Operations and Funds Available for Distribution	5
Same Store Analysis	6
Stabilized and Renovation Portfolio Occupancy Overview	7-10
Leasing Activity	11
Recurring Capital Expenditures	12
Lease Expiration Summary and Lease Expirations by Region	13-15
Top Ten Office and Top Ten Industrial Tenants	16
Summary of Tenants Representing 5.0% or Greater of Annual Base Rental Revenue	17
Summary of Peregrine Systems, Inc. Leases	18
2002 Acquisitions and Dispositions	19
Stabilized Development	20
In-Process and Committed Development Projects	21
Future Development Pipeline	22
Capital Structure	23
Debt Analysis	24-25

Some of the enclosed information presented in this supplemental and on the Company’s October 29, 2002 conference call is forward-looking in nature, including information concerning project development timing and investment amounts. Although the information is based on Kilroy Realty Corporation’s current expectations, actual results could vary from expectations stated here. Numerous factors will affect Kilroy Realty Corporation’s actual results, some of which are beyond its control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels and capital market conditions. You are cautioned not to place undue reliance on this information, which speaks only as of the date of this report. Kilroy Realty Corporation assumes no obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under Federal securities laws to disclose material information. For a discussion of important risks related to Kilroy Realty Corporation’s business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information, see the discussion under the caption “Business Risks” in Kilroy Realty Corporation’s annual report on Form 10-K for the year ended December 31, 2001. In light of these risks, uncertainties and assumptions, the forward-looking events contained in this supplemental information and on the Company’s October 29, 2002 conference call might not occur.

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Company Background

Kilroy Realty Corporation (NYSE: KRC) owns, develops, and operates office and industrial real estate, primarily in Southern California. The company operates as a self-administered real estate investment trust. As of September 30, 2002, the company’s stabilized portfolio consisted of 91 office buildings and 62 industrial buildings, which encompassed an aggregate of 7.6 million and 5.2 million square feet, respectively, and was 93.1% occupied.

Board of Directors		Senior Management		Investor Relations
John B. Kilroy, Sr.	Chairman	John B. Kilroy, Jr.	President and CEO	12200 W. Olympic Blvd, Suite 200
John R. D'Eathe		Jeffrey C. Hawken	Executive VP and COO	Los Angeles, CA 90064
William P. Dickey		Richard E. Moran Jr.	Executive VP and CFO	(310) 481-8400
Matthew J. Hart		Kathy M. Delgado	Sr. VP Marketing and Leasing	(310) 481-6580
John B. Kilroy, Jr.		John T. Fucci	Sr. VP Asset Management	Web: www.kilroyrealty.com
Dale F. Kinsella		Tyler H. Rose	Sr. VP and Treasurer	E-mail: investorrelations@kilroyrealty.com
		Steve Scott	Sr. VP San Diego Development
		Justin Smart	Sr. VP Los Angeles Development
		Ann Marie Whitney	Sr. VP and Controller

Equity Research Coverage

A.G. Edwards & Sons, Inc.		Green Street Advisors
David AuBuchon	(314) 955-5452	Jim Bracken	(949) 640-8780
Banc of America Securities LLC		McDonald Investments Inc.
Lee Schalop	(212) 847-5677	Anatole Pevnev	(216) 263-4783
Credit Suisse First Boston		Merrill Lynch & Co., Inc.
Larry Raiman	(212) 538-2380	Rahul Bhattacharjee	(212) 449-1920
Deutsche Bank Securities Inc.		Prudential Securities
Lou Taylor	(212) 469-4912	Jim Sullivan	(212) 778-2515
Friedman, Billings, Ramsey & Co., Inc.		UBS Warburg
David Loeb	(703) 469-1289	Stuart Seeley	(212) 713-9771

1

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Financial Highlights

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

	Three Months Ended
	9/30/2002			6/30/2002			3/31/2002			12/31/2001			9/30/2001
INCOME ITEMS (Including Discontinued Operations):
Revenues	$	51,111		$	51,265		$	52,635		$	49,598		$	51,446
Net Straight Line Rent		1,948			(97	)		1,637			2,271			1,928
Lease Termination Fees		51			0			1,270			9			27
Net Operating Income		38,669			39,254			40,416			38,525			38,880
EBITDA		35,783			35,692			40,617			34,232			34,738
Capitalized Interest and Loan Fees		3,451			3,359			3,837			3,757			3,109
Net Income		7,885			4,957			13,507			7,625			9,283
Funds From Operations		23,170			23,358			27,153			20,933			20,512
Funds Available for Distribution		19,285			22,595			26,368			14,944			16,753
Net Income per share—diluted	$	0.28		$	0.18		$	0.49		$	0.28		$	0.34
Funds From Operations per share—diluted	$	0.72		$	0.73		$	0.89		$	0.68		$	0.67
Funds Available for Distribution per share—diluted	$	0.60		$	0.70		$	0.86		$	0.49		$	0.55
Dividend per share	$	0.495		$	0.495		$	0.495		$	0.480		$	0.480
RATIOS (Including Discontinued Operations):
Operating Margins		75.2	%		76.2	%		77.0	%		77.8	%		74.8	%
Interest Coverage Ratio(1)		4.0	x		4.1	x		4.3	x		3.5	x		3.3	x
Fixed Charge Coverage Ratio(2)		2.9	x		2.9	x		3.2	x		2.6	x		2.5	x
FFO Payout Ratio(3)		68.7	%		68.0	%		55.8	%		69.9	%		71.3	%
FAD Payout Ratio(4)		82.6	%		70.3	%		57.5	%		97.9	%		87.4	%
	9/30/2002			6/30/2002			3/31/2002			12/31/2001			9/30/2001
ASSETS:
Investments in Real Estate before Depreciation	$	1,697,580		$	1,678,839		$	1,661,622		$	1,600,994		$	1,581,637
Total Assets		1,518,313			1,510,577			1,505,929			1,457,229			1,460,722
CAPITALIZATION:
Total Debt	$	773,268		$	761,302		$	741,186		$	714,587		$	722,688
Total Preferred Stock(5)		155,000			155,000			155,000			155,000			155,000
Total Market Equity Value(5)		762,628			860,409			903,565			800,894			760,651
Total Market Capitalization(5)		1,690,896			1,776,711			1,799,751			1,670,481			1,638,339
Total Debt / Total Market Capitalization		45.7	%		42.8	%		41.2	%		42.8	%		44.1	%
Total Debt and Preferred / Total Market Capitalization		54.9	%		51.6	%		49.8	%		52.1	%		53.6	%

⁽¹⁾ Calculated as income from operations before interest expense and depreciation and amortization divided by interest expense plus loan cost amortization.

⁽²⁾ Calculated as income from operations before interest expense and depreciation and amortization divided by interest expense plus loan cost amortization and current year paid and accrued preferred dividends.

⁽³⁾ Calculated as current year dividends paid and accrued to common shareholders divided by Funds From Operations.

⁽⁴⁾ Calculated as current year dividends paid and accrued to common shareholders divided by Funds Available for Distribution.

⁽⁵⁾ See “Capital Structure” on page 23.

2

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Consolidated Balance Sheets

(unaudited, $ in thousands)

	9/30/2002			6/30/2002			3/31/2002			12/31/2001
ASSETS:
Land and improvements	$	297,305		$	285,585		$	277,842		$	269,366
Buildings and improvements		1,290,575			1,220,923			1,179,214			1,140,499
Undeveloped land and construction in progress, net		109,700			172,331			204,566			191,129
Total investment in real estate		1,697,580			1,678,839			1,661,622			1,600,994
Accumulated depreciation and amortization		(270,951	)		(259,676	)		(248,702	)		(241,665	)
Investment in real estate, net		1,426,629			1,419,163			1,412,920			1,359,329
Cash and cash equivalents		9,878			12,663			10,432			16,487
Restricted cash		7,348			5,811			5,984			5,413
Current receivables, net		2,779			3,041			2,921			4,770
Deferred rent receivables, net		28,422			26,470			26,568			27,381
Deferred leasing costs, net		30,532			30,313			32,972			33,120
Deferred financing costs, net		6,873			7,596			9,236			3,948
Prepaid expenses and other assets		5,852			5,520			4,896			6,781
TOTAL ASSETS	$	1,518,313		$	1,510,577		$	1,505,929		$	1,457,229
LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities:
Secured debt	$	473,268		$	455,302		$	457,186		$	459,587
Unsecured line of credit		300,000			306,000			284,000			155,000
Unsecured term facility											100,000
Accounts payable, accrued expenses and other liabilities		37,766			39,016			49,745			53,879
Accrued distributions		15,922			15,891			15,163			14,634
Rents received in advance, tenant security deposits and deferred revenue		20,143			16,737			14,593			15,955
Total liabilities		847,099			832,946			820,687			799,055
Minority Interests:
8.075% Series A Cumulative Redeemable Preferred unitholders		73,716			73,716			73,716			73,716
9.375% Series C Cumulative Redeemable Preferred unitholders		34,464			34,464			34,464			34,464
9.250% Series D Cumulative Redeemable Preferred unitholders		44,321			44,321			44,321			44,321
Common unitholders of the Operating Partnership		68,522			72,415			74,477			49,176
Minority interest in Development LLCs											15,869
Total minority interests		221,023			224,916			226,978			217,546
Stockholders’ Equity:
Common stock		278			277			275			274
Additional paid-in capital		503,184			499,196			494,354			479,295
Distributions in excess of earnings		(48,020	)		(42,079	)		(33,305	)		(33,163	)
Accumulated net other comprehensive loss		(5,251	)		(4,679	)		(3,060	)		(5,778	)
Total stockholders' equity		450,191			452,715			458,264			440,628
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,518,313		$	1,510,577		$	1,505,929		$	1,457,229

3

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Consolidated Statements of Operations

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

	Three Months Ended September 30,								Nine Months Ended September 30,
	2002			2001			% Change		2002			2001			% Change
REVENUES:
Rental income	$	45,481		$	44,826		1.5	%	$	134,872		$	134,902		(0.0	%)
Tenant reimbursements		5,280			5,882		(10.2	%)		17,576			17,537		0.2	%
Interest income		80			170		(52.9	%)		451			883		(48.9	%)
Other income		211			383		(44.9	%)		1,678			6,173		(72.8	%)
Total revenues		51,052			51,261		(0.4	%)		154,577			159,495		(3.1	%)
EXPENSES:
Property expenses		7,931			7,879		0.7	%		23,148			22,193		4.3	%
Real estate taxes		4,061			4,087		(0.6	%)		11,938			12,425		(3.9	%)
General and administrative expenses		2,966			2,796		6.1	%		9,582			8,870		8.0	%
Ground leases		319			379		(15.8	%)		1,035			1,146		(9.7	%)
Interest expense		8,966			10,605		(15.5	%)		27,025			31,879		(15.2	%)
Depreciation and amortization(1)		14,744			12,838		14.8	%		46,060			39,079		17.9	%
Total expenses		38,987			38,584		1.0	%		118,788			115,592		2.8	%
INCOME FROM CONTINUING OPERATIONS BEFORE NET GAINS ON DISPOSITIONS		12,065			12,677		(4.8	%)		35,789			43,903		(18.5	%)
Net gains on dispositions of operating properties					2,468		(100.0	%)		896			4,007		(77.6	%)
INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTERESTS		12,065			15,145		(20.3	%)		36,685			47,910		(23.4	%)
MINORITY INTERESTS:
Distributions on Cumulative Redeemable
Preferred units		(3,375	)		(3,375	)	0.0	%		(10,125	)		(10,125	)	0.0	%
Minority interest attributable to continuing operations		(1,184	)		(1,018	)	16.3	%		(3,656	)		(3,643	)	0.4	%
Recognition of previously reserved Development LLC preferred return										3,908					100.0	%
Minority interest in earnings of Development LLCs					(1,547	)	(100.0	%)		(1,024	)		(2,152	)	(52.4	%)
Total minority interests		(4,559	)		(5,940	)	(23.2	%)		(10,897	)		(15,920	)	(31.6	%)
INCOME FROM CONTINUING OPERATIONS		7,506			9,205		(18.5	%)		25,788			31,990		(19.4	%)
DISCONTINUED OPERATIONS:(2)
Net (loss) income from discontinued operations		(36	)		87		(141.4	%)		170			233		(27.0	%)
Net gain on disposition of discontinued operations		470					100.0	%		470					100.0	%
Minority interest attributable to discontinued operations		(55	)		(9	)	511.1	%		(79	)		(25	)	216.0	%
Total discontinued operations		379			78		385.9	%		561			208		169.7	%
NET INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE		7,885			9,283		(15.1	%)		26,349			32,198		(18.2	%)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE													(1,392	)	100.0	%
NET INCOME	$	7,885		$	9,283		(15.1	%)	$	26,349		$	30,806		(14.5	%)
Weighted average shares outstanding—basic		27,623			27,359					27,449			27,080
Weighted average shares outstanding—diluted		27,839			27,587					27,733			27,315
NET INCOME PER COMMON SHARE:
Net income per common share—basic	$	0.29		$	0.34		(14.7	%)	$	0.96		$	1.14		(15.8	%)
Net income per common share—diluted	$	0.28		$	0.34		(17.6	%)	$	0.95		$	1.13		(15.9	%)

(1) Included in depreciation for the nine months ended September 30, 2002 is a non-cash charge of approximately $5.3 million for previously capitalized leasing costs, including leasing commissions and certain tenant improvements, related to the Company’s leases with Peregrine Systems, Inc.

(2) In accordance with SFAS 144 “Accounting for the Impairment or Disposal of Long-Lived Assets”, effective for financial statements issued after December 15, 2001, the net income and the net gain on disposition of properties sold subsequent to December 31, 2001 are reflected in the consolidated statement of operations as discontinued operations for all periods presented.

4

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Funds From Operations and Funds Available for Distribution

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

	Three Months Ended September 30,								Nine Months Ended September 30,
	2002			2001			% Change		2002			2001			% Change
FUNDS FROM OPERATIONS:
Net Income	$	7,885		$	9,283		(15.1	%)	$	26,349		$	30,806		(14.5	%)
Adjustments:
Minority interest in earnings of Operating Partnership		1,239			1,027		20.6	%		3,735			3,668		1.8	%
Depreciation and amortization		14,516			12,123		19.7	%		44,962			37,123		21.1	%
Net gains on dispositions of operating properties		(470	)		(2,468	)	(81.0	%)		(1,366	)		(4,007	)	(65.9	%)
Cumulative effect of change in accounting principle													1,392		(100.0	%)
Non-cash amortization of restricted stock grants(1)					547		(100.0	%)					1,643		(100.0	%)
Funds From Operations	$	23,170		$	20,512		13.0	%	$	73,680		$	70,625		4.3	%
Weighted average common shares/units outstanding—basic		31,918			30,421					31,360			30,303
Weighted average common shares/units outstanding—diluted		32,134			30,648					31,644			30,538
FFO per common share/unit—basic	$	0.73		$	0.67		9.0	%	$	2.35		$	2.33		0.9	%
FFO per common share/unit—diluted	$	0.72		$	0.67		7.5	%	$	2.33		$	2.31		0.9	%
FUNDS AVAILABLE FOR DISTRIBUTION:
Funds From Operations	$	23,170		$	20,512		13.0	%	$	73,680		$	70,625		4.3	%
Adjustments:
Amortization of deferred financing costs		457			408		12.0	%		1,677			1,188		41.2	%
Tenant improvements, leasing commissions  and recurring capital expenditures		(2,394	)		(2,240	)	6.9	%		(4,031	)		(6,919	)	(41.7	%)
Net effect of straight-line rents(2)		(1,948	)		(1,927	)	1.1	%		(3,079	)		(4,514	)	(31.8	%)
Funds Available for Distribution	$	19,285		$	16,753		15.1	%	$	68,247		$	60,380		13.0	%
FAD per common share/unit—basic	$	0.60		$	0.55		9.1	%	$	2.18		$	1.99		9.5	%
FAD per common share/unit—diluted	$	0.60		$	0.55		9.1	%	$	2.16		$	1.98		9.1	%

(1) Commencing January 1, 2002, non-cash amortization of restricted stock grants is not added back to calculate Funds From Operations.

(2) This amount represents the straight-line rent income recognized during the period net of a reserve for bad debts. For the nine months ended September 30, 2002 and 2001, this amount was adjusted to reflect cash received and applied against the deferred rents receivable for the leases that terminated early.

5

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Same Store Analysis⁽¹⁾

($ in thousands)

	Same Store Analysis (GAAP Basis)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2002			2001			% Change		2002			2001			% Change
Total Same Store Portfolio
Number of properties		140			140					140			140
Square Feet		11,599,922			11,599,922					11,599,922			11,599,922
Percent of Stabilized Portfolio		90.6	%		93.8	%				90.6	%		93.8	%
Average Occupancy		94.4	%		96.0	%				95.1	%		96.3	%
Operating Revenues:
Rental income	$	38,873		$	39,591		(1.8	%)	$	117,979		$	119,323		(1.1	%)
Tenant reimbursements		4,765			5,447		(12.5	%)		15,571			15,814		(1.5	%)
Other income		182			34		435.3	%		1,533			333		360.4	%
Total operating revenues		43,820			45,072		(2.8	%)		135,083			135,470		(0.3	%)
Operating Expenses:
Property expenses		6,969			7,063		(1.3	%)		19,808			19,941		(0.7	%)
Real estate taxes		3,485			3,578		(2.6	%)		10,382			10,733		(3.3	%)
Ground leases		273			329		(17.0	%)		897			986		(9.0	%)
Total operating expenses		10,727			10,970		(2.2	%)		31,087			31,660		(1.8	%)
GAAP Net Operating Income	$	33,093		$	34,102		(3.0	%)	$	103,996		$	103,810		0.2	%
	Same Store Analysis (Cash Basis)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2002			2001			% Change		2002			2001			% Change
Total operating revenues		42,788			43,343		(1.3	%)		133,044			130,816		1.7	%
Total operating expenses		10,727			10,970		(2.2	%)		31,087			31,660		(1.8	%)
Cash Net Operating Income	$	32,061		$	32,373		(1.0	%)	$	101,957		$	99,156		2.8	%

(1) Same store defined as all stabilized properties owned at January 1, 2001 and still owned at September 30, 2002.

6

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Stabilized and Renovation Portfolio Occupancy Overview

	# of Buildings	Portfolio Breakdown				Square Feet	Occupancy at:
		NOI		Sq. Ft.		Total	9/30/02		6/30/02		12/31/01
STABILIZED PORTFOLIO:
OCCUPANCY BY PRODUCT TYPE:
Office:
Los Angeles	32	35.7	%	25.5	%	3,268,651	87.5	%	85.3	%	88.1	%
Orange County	12	4.3	%	4.3	%	546,850	89.8	%	90.3	%	89.7	%
San Diego	41	31.2	%	24.1	%	3,081,207	93.3	%	99.2	%	100.0	%
Other	6	5.7	%	5.5	%	709,354	97.6	%	97.8	%	99.0	%
Subtotal	91	76.9	%	59.4	%	7,606,062	91.0	%	92.4	%	93.9	%
Industrial:
Los Angeles	7	3.0	%	4.3	%	554,490	79.3	%	99.9	%	99.4	%
Orange County	53	18.8	%	33.9	%	4,343,168	98.1	%	97.9	%	98.3	%
Other	2	1.3	%	2.3	%	295,417	100.0	%	100.0	%	100.0	%
Subtotal	62	23.1	%	40.6	%	5,193,075	96.2	%	98.3	%	98.5	%
OCCUPANCY BY REGION:
Los Angeles	39	38.7	%	29.9	%	3,823,141	86.3	%	87.4	%	89.8	%
Orange County	65	23.1	%	38.2	%	4,890,018	97.1	%	97.0	%	97.3	%
San Diego	41	31.2	%	24.1	%	3,081,207	93.3	%	99.2	%	100.0	%
Other	8	7.0	%	7.9	%	1,004,771	98.3	%	98.4	%	99.3	%
TOTAL STABILIZED PORTFOLIO	153	100.0	%	100.0	%	12,799,137	93.1	%	94.8	%	95.8	%
RENOVATION PORTFOLIO:
Office:
Orange County	1					78,016
TOTAL PORTFOLIO	154					12,877,153

AVERAGE OCCUPANCY—STABILIZED PORTFOLIO

	Office		Industrial		Total
Quarter-to-Date	92.2	%	95.9	%	93.7	%
Year-to-Date	91.8	%	97.6	%	94.2	%

7

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Stabilized and Renovation Portfolio Occupancy Overview

	City/Submarket	# of Buildings	Square Feet	Occupancy
Office:
Los Angeles, California
23925 Park Sorrento	Calabasas	1	11,789	100.0	%
23975 Park Sorrento	Calabasas	1	100,592	91.9	%
24025 Park Sorrento	Calabasas	1	102,264	100.0	%
26541 Agoura Road	Calabasas	1	90,878	100.0	%
5151—5155 Camino Ruiz	Camarillo	4	265,372	87.0	%
185 S. Douglas Street	El Segundo	1	62,150	3.5	%
909 N. Sepulveda	El Segundo	1	248,148	100.0	%
Kilroy Airport Center, El Segundo	El Segundo	3	706,302	98.3	%
525 N. Brand Blvd.	Glendale	1	43,647	27.5	%
Kilroy Airport Center, Long Beach	Long Beach	7	949,198	84.8	%
12200 W. Olympic Blvd.	Los Angeles	1	151,000	41.0	%
12312 W. Olympic Blvd.	Los Angeles	1	78,000	100.0	%
1633 26th Street	Santa Monica	1	44,915	100.0	%
2100 Colorado Avenue	Santa Monica	3	94,844	100.0	%
3130 Wilshire Blvd.	Santa Monica	1	88,338	90.4	%
501 Santa Monica Blvd.	Santa Monica	1	70,089	88.0	%
2829 Townsgate Road	Thousand Oaks	1	81,158	95.6	%
23600—23610 Telo Avenue	Torrance	2	79,967	87.2	%
Total Los Angeles Office		32	3,268,651	87.5	%
Orange County, California
1240—1250 Lakeview Avenue	Anaheim	2	78,903	98.0	%
4175 E. La Palma Avenue	Anaheim	1	42,790	50.0	%
8101 Kaiser Blvd.	Anaheim	1	60,177	85.7	%
Anaheim Corp. Center	Anaheim	4	157,758	92.0	%
601 Valencia	Brea	1	60,891	100.0	%
9451 Toledo Way	Irvine	1	27,200	100.0	%
111 Pacifica	Irvine Spectrum	1	67,381	82.0	%
2501 Pullman	Santa Ana	1	51,750	100.0	%
Total Orange County Office		12	546,850	89.8	%

8

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Stabilized and Renovation Portfolio Occupancy Overview

	City/ Submarket	# of Buildings	Square Feet	Occupancy
Office:
San Diego, California
5770 Armada Drive	Carlsbad	1	81,712	100.0	%
12340 El Camino Real	Del Mar	1	89,168	100.0	%
12348 High Bluff Drive	Del Mar	1	40,274	100.0	%
12390 El Camino Real	Del Mar	1	72,332	100.0	%
3579 / 3611 / 3661 / 3811 Valley Centre Drive (Peregrine)	Del Mar	4	423,874	57.0	%
12225 / 12235 El Camino Real	Del Mar	2	115,513	100.0	%
6215 / 6220 Greenwich Drive	Governor Park	2	212,214	100.0	%
15051 Ave of Science	Rancho Bernardo	1	70,617	100.0	%
15073 Ave of Science	Rancho Bernardo	1	46,759	51.1	%
15378 Ave of the Science	Rancho Bernardo	1	68,910	100.0	%
15435 / 15445 Innovation Drive	Rancho Bernardo	2	103,000	100.0	%
4939 / 4955 Directors Place	Sorrento Mesa	2	136,908	100.0	%
5005 / 5010 Wateridge Vista Drive	Sorrento Mesa	2	172,778	100.0	%
10243 Genetic Center	Sorrento Mesa	1	102,875	100.0	%
10390 Pacific Center Court	Sorrento Mesa	1	68,400	100.0	%
5717 Pacific Center	Sorrento Mesa	1	67,995	100.0	%
6055 Lusk Avenue	Sorrento Mesa	1	93,000	100.0	%
6260 Sequence Drive	Sorrento Mesa	1	130,000	100.0	%
6290 Sequence Drive	Sorrento Mesa	2	152,415	100.0	%
6340 / 6350 Sequence Drive	Sorrento Mesa	2	199,000	100.0	%
Pacific Corporate Center	Sorrento Mesa	7	411,339	100.0	%
4690 Executive Drive	University Towne Center	1	50,929	100.0	%
9455 Towne Center Drive	University Towne Center	1	45,195	100.0	%
9785 / 9791 Towne Center Drive	University Towne Center	2	126,000	100.0	%
Total San Diego Office		41	3,081,207	93.3	%
Other
3750 University Avenue	Riverside, CA	1	124,986	97.3	%
4351 Latham Avenue	Riverside, CA	1	21,357	100.0	%
4361 Latham Avenue	Riverside, CA	1	30,581	100.0	%
Kilroy Airport Center, Sea-Tac	Seattle, WA	3	532,430	97.4	%
Total Other Office		6	709,354	97.6	%
Total Office		91	7,606,062	91.0	%

9

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Stabilized and Renovation Portfolio Occupancy Overview

	City/ Submarket	# of Buildings	Square Feet	Occupancy
Industrial
Los Angeles, California
Walnut Park Bus. Center	Diamond Bar	3	165,685	99.0	%
2031 E. Mariposa Avenue	El Segundo	1	192,053	100.0	%
2260 E. El Segundo Blvd.	El Segundo	1	113,820	0.0	%
2265 E. El Segundo Blvd.	El Segundo	1	76,570	100.0	%
2270 E. El Segundo Blvd.	El Segundo	1	6,362	100.0	%
Total Los Angeles Industrial		7	554,490	79.3	%
Orange County, California
1000 E. Ball Road	Anaheim	1	100,000	100.0	%
1230 S. Lewis Road	Anaheim	1	57,730	100.0	%
1250 N. Tustin Avenue	Anaheim	1	84,185	100.0	%
3125 E. Coronado Street	Anaheim	1	144,000	100.0	%
3130—3150 Miraloma	Anaheim	1	144,000	100.0	%
3250 E. Carpenter	Anaheim	1	41,225	100.0	%
3340 E. La Palma Avenue	Anaheim	1	153,320	100.0	%
5115 E. La Palma Avenue	Anaheim	1	286,139	100.0	%
5325 E. Hunter Avenue	Anaheim	1	109,449	100.0	%
Anaheim Tech Center	Anaheim	5	593,992	100.0	%
La Palma Business Center	Anaheim	2	144,090	100.0	%
Brea Industrial Complex	Brea	7	276,278	100.0	%
Brea Industrial-Lambert Road	Brea	2	178,811	100.0	%
1675 MacArthur	Costa Mesa	1	50,842	100.0	%
25202 Towne Center Drive	Foothill Ranch	1	303,533	100.0	%
12400 Industry Street	Garden Grove	1	64,200	100.0	%
12681 / 12691 Pala Drive	Garden Grove	1	84,700	100.0	%
12752-12822 Monarch Street	Garden Grove	1	277,037	100.0	%
7421 Orangewood Avenue	Garden Grove	1	82,602	100.0	%
Garden Grove Industrial Complex	Garden Grove	6	275,971	96.4	%
13645—13885 Alton Parkway	Irvine	9	143,117	86.4	%
17150 Von Karman	Irvine	1	157,458	100.0	%
2055 S.E. Main Street	Irvine	1	47,583	100.0	%
9401 Toledo Way	Irvine	1	244,800	100.0	%
1951 E. Carnegie Avenue	Santa Ana	1	100,000	100.0	%
2525 Pullman	Santa Ana	1	107,130	100.0	%
14831 Franklin Avenue	Tustin	1	36,256	100.0	%
2911 Dow Avenue	Tustin	1	54,720	0.0	%
Total Orange County Industrial		53	4,343,168	98.1	%
Other
5115 N. 27th Avenue	Phoenix, AZ	1	130,877	100.0	%
3735 Imperial Highway	Stockton, CA	1	164,540	100.0	%
Total Other Industrial		2	295,417	100.0	%
Total Industrial		62	5,193,075	96.2	%

10

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Leasing Activity

Quarter-to-Date

					2nd Generation(6)										Weighted Average LeaseTerm (Mo.)
	# of Leases(1)		Square Feet(1)		TI/LC Per Sq.Ft.		Maintenance Capex Per Sq.Ft.(2)		Changes in Rents(3)		Changes in Cash Rents(4)		Retention Rates(5)
	New	Renewal	New	Renewal
Office	15	11	121,838	38,539	$	14.41	$	0.03	10.9	%	11.4	%	82.2	%	50
Industrial	6	3	122,273	7,707	$	1.95	$	0.04	(0.5	%)	(4.3	%)	41.1	%	54
Total	21	14	244,111	46,246	$	7.26	$	0.04	7.8	%	7.0	%	70.5	%	52

Year-to-Date

					2nd Generation(6)										Weighted Average LeaseTerm (Mo.)
	# of Leases(1)		Square Feet(1)		TI/LC Per Sq.Ft.		Maintenance Capex Per Sq.Ft.(2)		Changes in Rents(3)		Changes in Cash Rents(4)		Retention Rates(5)
	New	Renewal	New	Renewal
Office	24	33	329,517	213,027	$	9.47	$	0.06	2.7	%	(2.8	%)	48.4	%	59
Industrial	17	12	251,608	166,455	$	2.24	$	0.11	6.8	%	(1.4	%)	65.8	%	67
Total	41	45	581,125	379,482	$	6.04	$	0.08	3.7	%	(2.4	%)	55.5	%	62

(1) Represents leasing activity for leases commencing during the current quarter and year-to date, respectively. Includes first and second generation space, net of month-to-month leases. Excludes leasing on new construction. First generation space is defined as the space first leased by the Company.

(2) Calculated over entire stabilized portfolio.

(3) Calculated as the change between GAAP rents for new/renewed leases and the expiring GAAP rents for the same space.

(4) Calculated as the change between stated rents for new/renewed leases and the expiring stated rents for the same space.

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

(6) Second generation calculations based on leases commencing during the current quarter and year-to date, respectively.

11

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Recurring Capital Expenditures

($ in thousands)

	Q3 2002		Q2 2002		Q1 2002			YTD 2002
Capital Improvements
Office	$	248	$	157	$	33		$	438
Industrial		190		338		16			544
		438		495		49			982
Tenant Improvements & Leasing Commissions(1)
Office		1,814		599		289			2,702
Industrial		142		208		(3	)		347
		1,956		807		286			3,049
Total
Office		2,062		756		322			3,140
Industrial		332		546		13			891
	$	2,394	$	1,302	$	335		$	4,031

(1) Represents cash paid and leasing costs incurred for leases commencing during the period shown.

12

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Lease Expiration Summary Schedule

($ in thousands)

Year of Expiration	# of Expiring Leases	Total Square Feet(1)	% of Total Leased Sq. Ft.		Annual Base Rent		Annual Rent per Sq. Ft.(2)
OFFICE:
Remaining 2002	10	100,889	1.5	%	$	1,483	$	14.70
2003	73	994,218	14.5	%		13,580		13.66
2004	62	813,477	11.9	%		17,576		21.61
2005	62	699,895	10.2	%		15,496		22.14
2006	47	601,048	8.8	%		13,840		23.03
2007	34	789,778	11.5	%		14,100		17.85
2008	12	628,165	9.2	%		14,793		23.35
2009	11	735,917	10.7	%		15,937		21.66
2010	8	232,501	3.4	%		5,328		22.92
2011 and beyond	19	1,252,800	18.3	%		33,866		27.03
Subtotal	338	6,848,688	100.0	%	$	145,999	$	21.32
INDUSTRIAL:
Remaining 2002	10	36,812	0.8	%	$	146	$	3.97
2003	36	541,497	11.0	%		3,554		6.56
2004	27	549,248	11.2	%		3,923		7.14
2005	16	712,203	14.5	%		5,289		7.43
2006	11	602,980	12.3	%		4,531		7.51
2007	12	504,069	10.3	%		3,487		6.92
2008	5	752,946	15.3	%		5,203		6.91
2009	7	505,976	10.3	%		3,183		6.29
2010	2	70,101	1.4	%		512		7.30
2011 and beyond	5	631,406	12.9	%		4,733		7.50
Subtotal	131	4,907,238	100.0	%	$	34,561	$	7.04
TOTAL PORTFOLIO:
Remaining 2002	20	137,701	1.2	%	$	1,629	$	11.83
2003	109	1,535,715	13.1	%		17,234		11.16
2004	89	1,362,725	11.6	%		21,499		15.78
2005	78	1,412,098	12.0	%		20,785		14.72
2006	58	1,204,028	10.2	%		18,371		15.26
2007	46	1,293,847	11.0	%		17,587		13.59
2008	17	1,381,111	11.7	%		19,996		14.48
2009	18	1,241,893	10.6	%		19,120		15.40
2010	10	302,602	2.6	%		5,840		19.30
2011 and beyond	24	1,884,206	16.0	%		38,599		20.49
Total	469	11,755,926	100.0	%	$	180,560	$	15.36

(1) Excludes space leased under month-to-month leases and vacant space at September 30, 2002.

(2) Reflects annualized rent calculated on a straight-line basis.

13

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Lease Expiration Schedule Detail by Region

($ in thousands)

	Los Angeles County								Orange County
Year of Expiration	# of Expiring Leases	Total Square Feet(1)	% of Total Regional Sq. Ft.		Annual Base Rent		Annual Rent per Sq. Ft.(2)		# of Expiring Leases	Total Square Feet(1)	% of Total Regional Sq. Ft.		Annual Base Rent		Annual Rent per Sq. Ft.(2)
OFFICE:
Remaining 2002	4	7,581	0.3	%	$	186	$	24.54	2	12,540	2.6	%	$	204	$	16.27
2003	28	560,916	20.0	%		10,235		18.25	28	78,770	16.4	%		1,183		15.02
2004	34	563,174	20.1	%		13,578		24.11	14	125,543	26.0	%		1,700		13.54
2005	28	205,909	7.3	%		5,628		27.33	13	63,914	13.2	%		1,272		19.90
2006	27	241,375	8.6	%		7,277		30.15	9	46,977	9.7	%		898		19.12
2007	14	133,149	4.8	%		3,307		24.84	4	25,552	5.3	%		352		13.78
2008	5	278,247	9.9	%		8,177		29.39	3	116,258	24.1	%		2,065		17.76
2009	7	425,076	15.2	%		10,272		24.02	—	—	—			—		—
2010	5	54,109	1.9	%		1,684		31.12	—	—	—			—		—
2011 and beyond	8	334,962	11.9	%		6,462		19.29	1	13,213	2.7	%		453		34.28
Subtotal	160	2,804,498	100.0	%	$	66,806	$	23.82	74	482,767	100.0	%	$	8,127	$	16.83
INDUSTRIAL:
Remaining 2002	6	11,812	2.7	%	$	112	$	9.48	4	25,000	0.6	%	$	34	$	1.36
2003	17	77,367	17.6	%		652		8.43	19	464,130	11.1	%		2,902		6.25
2004	10	121,318	27.6	%		935		7.71	17	433,930	10.4	%		2,988		6.89
2005	3	209,493	47.8	%		2,155		10.29	13	502,710	12.0	%		3,134		6.23
2006	—	—	—			—		—	10	432,440	10.4	%		3,351		7.75
2007	3	12,238	2.8	%		122		9.97	9	491,831	11.8	%		3,365		6.84
2008	—	—	—			—		—	5	752,946	18.0	%		5,203		6.91
2009	1	6,362	1.5	%		101		15.88	6	499,614	12.0	%		3,082		6.17
2010	—	—	—			—		—	2	70,101	1.7	%		512		7.30
2011 and beyond	—	—	—			—		—	4	500,529	12.0	%		3,941		7.87
Subtotal	40	438,590	100.0	%	$	4,077	$	9.30	89	4,173,231	100.0	%	$	28,512	$	6.83
TOTAL PORTFOLIO:
Remaining 2002	10	19,393	0.6	%	$	298	$	15.37	6	37,540	0.8	%	$	238	$	6.34
2003	45	638,283	19.7	%		10,887		17.06	47	542,900	11.7	%		4,085		7.52
2004	44	684,492	21.1	%		14,513		21.20	31	559,473	12.0	%		4,688		8.38
2005	31	415,402	12.8	%		7,783		18.74	26	566,624	12.2	%		4,406		7.78
2006	27	241,375	7.4	%		7,277		30.15	19	479,417	10.3	%		4,249		8.86
2007	17	145,387	4.5	%		3,429		23.59	13	517,383	11.1	%		3,717		7.18
2008	5	278,247	8.6	%		8,177		29.39	8	869,204	18.7	%		7,268		8.36
2009	8	431,438	13.3	%		10,373		24.04	6	499,614	10.7	%		3,082		6.17
2010	5	54,109	1.7	%		1,684		31.12	2	70,101	1.5	%		512		7.30
2011 and beyond	8	334,962	10.3	%		6,462		19.29	5	513,742	11.0	%		4,394		8.55
Total	200	3,243,088	100.0	%	$	70,883	$	21.86	163	4,655,998	100.0	%	$	36,639	$	7.87

(1) Excludes space leased under month-to-month leases and vacant space at September 30, 2002.

(2) Reflects annualized base rent calculated on a straight-line basis.

14

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Lease Expiration Schedule Detail by Region

($ in thousands)

	San Diego County								Other
Year of Expiration	# of Expiring Leases	Total Square Feet(1)	% of Total Regional Sq. Ft.		Annual Base Rent		Annual Rent per Sq. Ft.(2)		# of Expiring Leases	Total Square Feet(1)	% of Total Regional Sq. Ft.		Annual Base Rent		Annual Rent per Sq. Ft.(2)
OFFICE:
Remaining 2002	1	52,540	1.8	%	$	654	$	12.45	3	28,228	4.1	%	$	439	$	15.55
2003	2	107,128	3.7	%		1,437		13.41	15	247,404	36.1	%		725		2.93
2004	1	50,929	1.8	%		960		18.85	13	73,831	10.8	%		1,338		18.12
2005	4	304,454	10.6	%		3,824		12.56	17	125,618	18.3	%		4,772		37.79
2006	3	190,209	6.6	%		3,147		16.54	8	122,487	17.9	%		2,518		20.56
2007	7	548,878	19.1	%		8,753		15.95	9	82,199	12.0	%		1,688		20.54
2008	4	233,660	8.1	%		4,551		19.48	—	—	—			—		—
2009	3	305,378	10.6	%		5,530		18.11	1	5,463	0.8	%		135		24.71
2010	3	178,392	6.2	%		3,644		20.43	—	—	—			—		—
2011 and beyond	10	904,625	31.5	%		26,951		29.79	—	—	—			—		—
Subtotal	38	2,876,193	100.0	%	$	59,451	$	20.67	66	685,230	100.0	%	$	11,615	$	16.95
INDUSTRIAL:
Remaining 2002	—	—	—			—		—	—	—	—			—		—
2003	—	—	—			—		—	—	—	—			—		—
2004	—	—	—			—		—	—	—	—			—		—
2005	—	—	—			—		—	—	—	—			—		—
2006	—	—	—			—		—	1	164,540	55.7	%		1,180		7.17
2007	—	—	—			—		—	—	—	—			—		—
2008	—	—	—			—		—	—	—	—			—		—
2009	—	—	—			—		—	—	—	—			—		—
2010	—	—	—			—		—	—	—	—			—		—
2011 and beyond	—	—	—			—		—	1	130,877	44.3	%		792		6.05
Subtotal	—	—	—			—		—	2	295,417	100.0	%	$	1,972	$	6.68
TOTAL PORTFOLIO:
Remaining 2002	1	52,540	1.8	%	$	654	$	12.45	3	28,228	2.9	%	$	439	$	15.55
2003	2	107,128	3.7	%		1,437		13.41	15	247,404	25.2	%		725		2.93
2004	1	50,929	1.8	%		960		18.85	13	73,831	7.5	%		1,338		18.12
2005	4	304,454	10.6	%		3,824		12.56	17	125,618	12.8	%		4,772		37.99
2006	3	190,209	6.6	%		3,147		16.54	9	287,027	29.3	%		3,698		12.88
2007	7	548,878	19.1	%		8,753		15.95	9	82,199	8.4	%		1,688		20.54
2008	4	233,660	8.1	%		4,551		19.48	—	—	—			—		—
2009	3	305,378	10.6	%		5,530		18.11	1	5,463	0.6	%		135		24.71
2010	3	178,392	6.2	%		3,644		20.43	—	—	—			—		—
2011 and beyond	10	904,625	31.5	%		26,951		29.79	1	130,877	13.3	%		792		6.05
Total	38	2,876,193	100.0	%	$	59,451	$	20.67	68	980,647	100.0	%	$	13,587	$	13.86

(1) Excludes space leased under month-to-month leases and vacant space at September 30, 2002.

(2) Reflects annualized rent calculated on a straight-line basis.

15

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Top Ten Office and Top Ten Industrial Tenants

($ in thousands)

Tenant Name	Annual Base Rental Revenues(1)		Rentable Square Feet	Percentage of Total Annual Base Rental Revenues	Percentage of Total Rentable Square Feet
Office Properties:
The Boeing Company	$	17,971	1,080,662	9.8%	8.4%
Peregrine Systems, Inc.(2)		7,044	241,747	3.8%	1.9%
DirecTV, Inc.		6,663	182,463	3.6%	1.4%
Diversa Corporation		4,686	136,908	2.6%	1.1%
Epson America, Inc.		4,251	166,575	2.3%	1.3%
Brobeck, Phleger & Harrison		4,223	161,500	2.3%	1.3%
Newgen Results Corporation		3,445	102,875	1.9%	0.8%
Scan Health Plan		3,429	119,219	1.9%	0.9%
Epicor Software Corporation		3,417	172,778	1.9%	1.3%
Intuit, Inc.		3,150	212,214	1.7%	1.7%
Total Office Properties	$	58,279	2,576,941	31.8%	20.1%
Industrial Properties:
Celestica California, Inc.	$	2,493	303,533	1.4%	2.4%
Qwest Communications Corporation		2,422	244,800	1.3%	1.9%
Mattel, Inc.		2,023	192,053	1.1%	1.5%
Packard Hughes Interconnect		1,700	157,458	0.9%	1.2%
Targus, Inc.		1,481	266,093	0.8%	2.1%
NBTY Manufacturing, LLC		1,461	286,139	0.8%	2.2%
Southern Plastic Mold, Inc.		1,210	188,000	0.7%	1.5%
Kraft Foods, Inc.		1,185	164,540	0.7%	1.3%
Extron Electronics		960	157,730	0.5%	1.2%
Ricoh Electronics		809	100,000	0.4%	0.8%
Total Industrial Properties	$	15,744	2,060,346	8.6%	16.1%

(1) Reflects annualized rent calculated on a straight-line basis.

(2) In September 2002, Peregrine Systems, Inc. filed for bankruptcy. As part of the bankruptcy filing, Peregrine filed a motion to reject two leases it has with the Company encompassing 52,375 and 129,752 rentable square feet. Peregrine continues to lease two buildings encompassing 241,747 rentable square feet, of which 64,946 rentable square feet are subleased to other tenants. Of the annual base rental revenues of $7.0 million, the Peregrine leases contribute approximately $4.9 million and the executed subleases contribute approximately $2.1 million.

16

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Summary of Tenants Representing 5.0% or Greater of Annual Base Rental Revenue

($ in thousands)

The Boeing Company	Rentable Square Feet	Annual Base Rental Revenues(1)		Lease Expiration Date
Boeing Satellite Systems
2260 E. Imperial Highway, El Segundo	293,261	$	7,499	July 31, 2004
909 N. Sepulveda, El Segundo	248,148		2,978	February 28, 2003(2)
1231 N. Miller Street, Anaheim	113,242		684	March 31, 2009
2240 E. Imperial Highway, El Segundo	101,564		1,729	January 31, 2004
2250 E. Imperial Highway, El Segundo	7,791		271	November 30, 2004
	764,006		13,161
Boeing MTA (Military Transport Aircraft)
3760 Kilroy Airport Way, Long Beach	24,536		686	December 31, 2002(2)
3760 Kilroy Airport Way, Long Beach	26,620		831	December 31, 2002(2)
	51,156		1,517
Boeing Airplane-on-Ground Division
17930 Pacific Highway, Seattle	211,139		1,769	December 31, 2002
Boeing Capital Corporation
3780 Kilroy Airport Way, Long Beach	43,636		1,223	September 30, 2005
Boeing Realty Corporation
3760 Kilroy Airport Way, Long Beach	10,725		301	August 31, 2005
Total	1,080,662	$	17,971

(1) Reflects annualized rent calculated on a straight-line basis.

(2) Boeing has informed the Company that it intends to vacate the space upon lease expiration.

17

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Summary of Peregrine Systems, Inc. Leases

($ in thousands)

	Rentable	Annual Base		Lease
	Square	Rental		Expiration
Peregrine Systems, Inc.	Feet	Revenues (1)		Date
Motion Filed to Reject(4)
Building 1—3579 Valley Centre Drive	52,375	$	1,682
Building 3—3661 Valley Centre Drive	129,752		4,308
Building 4—3721 Valley Centre Drive(2)	114,780		—
	296,907		5,990
Leases Not Rejected(4)
Building 2—3611 Valley Centre Drive	129,680		3,779	April 30, 2012
Building 5—3811 Valley Centre Drive(3)	112,067		3,265	July 31, 2011
	241,747		7,044
Total	538,654	$	13,034

(1) Reflects annualized rent calculated on a straight-line basis.

(2) Building 4 was under construction when Peregrine previously surrendered it back to KRC. The Building has been 100% released to a third-party tenant.

(3) Includes 64,496 rentable square feet of executed subleases with annual base rental revenues of approximately $2.1 million.

(4) In September 2002 Peregrine filed for bankruptcy. As part of the bankruptcy filing, Peregrine filed a motion to reject three leases it has with the Company. Peregrine did not file to reject the remaining two leases.

18

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

2002 Acquisitions and Dispositions

($ in thousands)

ACQUISITIONS:
Project	Location	Type	Month of Acquisition	Square Feet	Purchase Price(1)
1st QUARTER:
NONE
2nd QUARTER:
NONE
3rd QUARTER:
2525 Pullman	Santa Ana	Industrial	August	107,130	$8,083
TOTAL YEAR-TO-DATE ACQUISITIONS				107,130	$8,083
DISPOSITIONS:
Project	Location	Type	Month of Disposition	Square Feet	Sales Price
1st QUARTER:
NONE
2nd QUARTER:
NONE
3rd QUARTER:
3990 Ruffin Road	San Diego	Office	September	45,634	$6,492
TOTAL YEAR-TO-DATE DISPOSITIONS				45,634	$6,492

(1) Includes all closing costs at September 30, 2002.

19

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Stabilized Development

($ in thousands)

Project	Location	Type	Start Date	Completion Date	Rentable Square Feet	Total Est. Investment		% Occupied		% Leased
1st QUARTER:
15051 Ave of Science (ICC Lot 12)	Rancho Bernardo, CA	Office	2Q 2000	2Q 2001	70,617	$	15,179	100	%	100	%
4939 Directors Place (Gateway Lot 4)	Sorrento Mesa, CA	Office	2Q 2001	1Q 2002	60,662		16,764	100	%	100	%
Subtotal					131,279		31,943	100	%	100	%
2nd QUARTER:
23975 Park Sorrento (Calabasas Ph II)	Calabasas, CA	Office	2Q 2000	2Q 2001	100,592		22,412	92	%	97	%
15073 Ave of Science (ICC Lot 8)	Rancho Bernardo, CA	Office	2Q 2000	2Q 2001	46,759		9,377	51	%	100	%
10390 Pacific Center Court (PCC Lots 25&27)	Sorrento Mesa, CA	Office	2Q 2001	4Q 2001	68,400		17,823	100	%	100	%
					215,751		49,612	86	%	99	%
3rd QUARTER:
12340 El Camino Real (Brobeck Expansion)	Del Mar, CA	Office	3Q 2001	3Q 2002	89,168		24,347	100	%	100	%
					89,168		24,347	100	%	100	%
TOTAL YEAR-TO-DATE STABILIZED DEVELOPMENT					436,198	$	105,902	93	%	99	%

Some of the enclosed information presented in this supplemental and on the Company’s October 29, 2002 conference call is forward-looking in nature, including information concerning project development timing and investment amounts. Although the information is based on Kilroy Realty Corporation’s current expectations, actual results could vary from expectations stated here. Numerous factors will affect Kilroy Realty Corporation’s actual results, some of which are beyond its control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels and capital market conditions. You are cautioned not to place undue reliance on this information, which speaks only as of the date of this report. Kilroy Realty Corporation assumes no obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under Federal securities laws to disclose material information. For a discussion of important risks related to Kilroy Realty Corporation’s business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information, see the discussion under the caption “Business Risks” in Kilroy Realty Corporation’s annual report on Form 10-K for the year ended December 31, 2001. In light of these risks, uncertainties and assumptions, the forward-looking events contained in this supplemental information and on the Company’s October 29, 2002 conference call might not occur.

20

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

In-Process and Committed Development Projects

($ in thousands)

Project	Location	Type	Estimated Construction Period		Est. Stabilization Date(1)	Rentable Square Feet	Total Estimated Investment		Total Costs as of 9/30/2002		% Leased
			Start Date	Compl. Date
PROJECTS IN LEASE-UP:
12100 W. Olympic Blvd. (WMC III)	West LA, CA	Office	4Q 2000	2Q 2002	2Q 2003	151,000	$	60,515	$	45,020	23	%(2)
999 Sepulveda (Imperial & Sepulveda)	El Segundo, CA	Office	1Q 2001	3Q 2002	3Q 2003	133,678		44,406		35,409	0	%
3721 Valley Centre Drive (Peregrine Bldg 4)(3)	Del Mar, CA	Office	3Q 2001	3Q 2002	3Q 2003	114,780		31,330		23,392	100	%
Subtotal						399,458		136,251		103,821	37	%
PROJECTS UNDER CONSTRUCTION:
12400 High Bluff (San Diego Corporate Center)	Del Mar, CA	Office	2Q 2002	3Q 2003	3Q 2004	208,961		62,406		28,757	84	%
Subtotal						208,961		62,406		28,757	84	%
TOTAL PROJECTS IN LEASE UP AND UNDER CONSTRUCTION						608,419		198,657		132,578	53	%
COMMITTED DEVELOPMENT:
None
TOTAL IN-PROCESS AND COMMITTED DEVELOPMENT PROJECTS:						608,419	$	198,657	$	132,578	53	%

(1) Based on management’s estimation of the earlier of stabilized occupancy (95%) or one year from the date of substantial completion.

(2) Certain aspects of this lease are subject to governmental approval.

(3) 3721 Valley Centre Drive was previously committed to Peregrine Systems, Inc. Peregrine surrendered the building back to the Company in June 2002. The building has been 100% released to an unaffiliated third party tenant.

Some of the enclosed information presented in this supplemental and on the Company’s October 29, 2002 conference call is forward-looking in nature, including information concerning project development timing and investment amounts. Although the information is based on Kilroy Realty Corporation’s current expectations, actual results could vary from expectations stated here. Numerous factors will affect Kilroy Realty Corporation’s actual results, some of which are beyond its control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels and capital market conditions. You are cautioned not to place undue reliance on this information, which speaks only as of the date of this report. Kilroy Realty Corporation assumes no obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under Federal securities laws to disclose material information. For a discussion of important risks related to Kilroy Realty Corporation’s business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information, see the discussion under the caption “Business Risks” in Kilroy Realty Corporation’s annual report on Form 10-K for the year ended December 31, 2001. In light of these risks, uncertainties and assumptions, the forward-looking events contained in this supplemental information and on the Company’s October 29, 2002 conference call might not occur.

21

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Future Development Pipeline

($ in thousands)

Project	Location	Type	Total Site Acreage	Estimated Rentable Square Feet	Total Estimated Investment		Total Costs as of 9/30/2002
SAN DIEGO COUNTY:
Innovation Corporate Center—Lot 2	Rancho Bernardo, CA	Office	3.0	51,187	$	10,672	$	2,834
Innovation Corporate Center—Lot 4	Rancho Bernardo, CA	Office	3.4	75,000		14,220		3,410
Innovation Corporate Center—Lot 9	Rancho Bernardo, CA	Office	3.2	65,867		13,082		3,392
Innovation Corporate Center—Lot 10	Rancho Bernardo, CA	Office	2.2	37,405		8,345		2,326
Pacific Corporate Center—Lots 3, 4 & 6	Sorrento Mesa, CA	Office	10.9	225,000		49,911		13,142
Pacific Corporate Center—Lot 8	Sorrento Mesa, CA	Office	5.0	95,000		26,396		6,656
Santa Fe Summit—Phase I	56-Corridor, CA	Office	7.6	150,000		34,825		6,586
Santa Fe Summit—Phase II	56-Corridor, CA	Office	7.6	150,000		34,257		6,585
Sorrento Gateway—Lot 1	Sorrento Mesa, CA	Office	3.4	61,000		16,830		3,756
Sorrento Gateway—Lot 2	Sorrento Mesa, CA	Office	4.4	80,000		24,358		6,943
Sorrento Gateway—Lot 3	Sorrento Mesa, CA	Office	3.4	60,000		19,482		4,875
Sorrento Gateway—Lot 7	Sorrento Mesa, CA	Office	4.1	57,000		19,644		6,214
TOTAL FUTURE DEVELOPMENT PIPELINE			58.2	1,107,459	$	272,022	$	66,719

Some of the enclosed information presented in this supplemental and on the Company’s October 29, 2002 conference call is forward-looking in nature, including information concerning project development timing and investment amounts. Although the information is based on Kilroy Realty Corporation’s current expectations, actual results could vary from expectations stated here. Numerous factors will affect Kilroy Realty Corporation’s actual results, some of which are beyond its control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels and capital market conditions. You are cautioned not to place undue reliance on this information, which speaks only as of the date of this report. Kilroy Realty Corporation assumes no obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under Federal securities laws to disclose material information. For a discussion of important risks related to Kilroy Realty Corporation’s business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information, see the discussion under the caption “Business Risks” in Kilroy Realty Corporation’s annual report on Form 10-K for the year ended December 31, 2001. In light of these risks, uncertainties and assumptions, the forward-looking events contained in this supplemental information and on the Company’s October 29, 2002 conference call might not occur.

22

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Capital Structure

At September 30, 2002

($ in thousands)

	Shares/Units at September 30, 2002	Aggregate Principal Amount or $ Value Equivalent		% of Total Market Capitalization
DEBT:
Secured Debt			473,268	28.0	%
Unsecured Line of Credit			300,000	17.7	%
Total Debt		$	773,268	45.7	%
EQUITY:
8.075% Series A Cumulative Redeemable Preferred Units(1)	1,500,000	$	750,000	4.4	%
9.375% Series C Cumulative Redeemable Preferred Units(1)	700,000		35,000	2.1	%
9.250% Series D Cumulative Redeemable Preferred Units(1)	900,000		45,000	2.8	%
Common Units Outstanding(2)	4,236,752		100,453	5.8	%
Common Shares Outstanding(2)	27,928,080		662,175	39.2	%
Total Equity		$	917,628	54.3	%
TOTAL MARKET CAPITALIZATION		$	1,690,896	100.0	%

(1) Value based on $50.00 per share liquidation preference.

(2) Valued based on closing share price of $23.71 at September 30, 2002.

23

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Debt Analysis

At September 30, 2002

($ in thousands)

TOTAL DEBT COMPOSITION

	% of Total Debt		Weighted Average
			Interest Rate		Maturity
Secured vs. Unsecured Debt:
Secured Debt	61.2	%	6.6	%	5.5
Unsecured Debt	38.8	%	5.2	%	2.5
Floating vs. Fixed Rate Debt:
Fixed Rate Debt(1),(2),(4)	69.3	%	7.2	%	5.2
Floating Rate Debt(3)	30.7	%	3.4	%	2.3
Total Debt			6.0	%	4.3
Total Debt Including Loan Fees			6.4	%

UNSECURED LINE OF CREDIT

Total Line	Outstanding Balance	Expiration Date
$425,000	$300,000	March 2005

CAPITALIZED INTEREST & LOAN FEES

Quarter-to-Date	Year-to-Date
$3.5	$10.6

(1) The Company currently has an interest-rate swap agreement, which expires in November 2002, to fix LIBOR on $150 million of its floating rate debt at 5.48%.

(2) The Company currently has an interest-rate swap agreement, which expires in January 2005, to fix LIBOR on $50 million of its floating rate debt at 4.46%.

(3) The Company currently has interest-rate cap agreements, which expire in January 2005, to cap LIBOR on $100 million of its floating rate debt at 4.25%.

(4) The percentage of fixed rate debt to total debt does not take into consideration the portion of floating rate debt capped by the Company's interest-rate cap agreements. Including the effects of the interest-rate cap agreements, the Company had fixed or capped approximately 82.2% of its total outstanding debt at September 30, 2002.

24

KILROY REALTY CORPORATION

Third Quarter 2002 Supplemental Financial Report

Debt Analysis

At September 30, 2002

($ in thousands)

DEBT MATURITY SCHEDULE
Floating/ Fixed Rate	Effective Rate		Maturity Date	2002		2003		2004		2005		2006		After 2006		Total
Unsecured Debt:
Floating	3.34	%	3/15/2005							$	300,000					$	300,000
Secured Debt:
Floating	3.63	%	10/29/2003				75,671										75,671
Floating	3.57	%	6/29/2004		83		347		20,631								21,061
Floating	3.67	%	9/29/2004						9,532								9,532
Fixed	8.35	%	1/31/2005		400		1,690		1,837		72,983						76,910
Fixed	8.45	%	12/1/2005		183		578		629		10,295						11,685
Floating	3.57	%	1/1/2006										31,000				31,000
Fixed	6.51	%	8/12/2007		66		205		219		234		249		17,027		18,000
Fixed	7.21	%	8/12/2007		46		144		155		166		179		4,310		5,000
Fixed	7.20	%	4/1/2009		435		1,834		1,970		2,117		2,274		80,435		89,065
Fixed	6.70	%	1/10/2012		218		911		973		1,040		1,112		75,251		79,505
Fixed	8.21	%	10/1/2013		122		386		419		455		494		4,632		6,508
Fixed	8.26	%	11/1/2014		179		651		708		770		837		19,271		22,416
Fixed	7.15	%	5/1/2017		351		1,104		1,185		1,273		1,367		21,635		26,915
	5.17	%			2,083		83,521		38,258		89,333		37,512		222,561		473,268
Effect of SWAPS	0.87	%
Total	6.04	%		$	2,083	$	83,521	$	38,258	$	389,333	$	37,512	$	222,561	$	773,268

HEDGING INSTRUMENTS
Notional Amount	Instrument	Rate	Maturity
$150,000	Swap	5.48%	11/2002
50,000	Cap	4.25%	01/2005
50,000	Cap	4.25%	01/2005
50,000	Swap	4.46%	01/2005
$300,000

25