Exhibit 99.2

Contact:	FOR RELEASE:
Richard E. Moran Jr. Executive Vice President and Chief Financial Officer (310) 481-8483 or Tyler H. Rose Senior Vice President and Treasurer (310) 481-8484	April 28, 2003

KILROY REALTY CORPORATION REPORTS

FIRST QUARTER FINANCIAL RESULTS

LOS ANGELES, April 28, 2003 — Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its first quarter ended March 31, 2003, with net income of $10.9 million, or $0.40 per share, compared to $13.5 million, or $0.49 per share in the first quarter of 2002. Revenues from continuing operations in the first quarter totaled $54.6 million, up from $51.1 million in the year-earlier period.

The company’s funds from operations (FFO) in the first quarter of 2003 totaled $26.3 million, or $0.83 per share, compared to $27.2 million, or $0.89 per share, in the first quarter of 2002.

KRC said financial results in both periods were increased by nonrecurring gains. In the current quarter, the company recognized a lease termination fee that added $0.13 per share to FFO. In the year-earlier quarter, KRC recognized $0.13 per share of preferred return income related to its buyout of a former partner’s remaining real estate interests in twelve properties.

At the end of the first quarter, the company’s stabilized portfolio was 92.2% occupied.

All per-share amounts in this report are presented on a diluted basis.

KRC continues to develop an additional 608,000 square feet of space in Southern California, with completion dates scheduled through 2003. This committed development pipeline, which represents a total estimated investment of approximately $196 million, is currently 60% leased. In addition, the company has four redevelopment projects underway in Southern California totaling 473,000 square feet of space. The estimated incremental redevelopment costs for these projects is approximately $48.7 million.

Earnings guidance for 2003 will be discussed by management on its Tuesday, April 29, 2003 earnings conference call. The conference call will begin at 11:00 am PDT and last approximately one hour. Those interested in listening via the Internet can access the conference call at www.kilroyrealty.com. Please go the website 15 minutes before the call and register. It may be necessary to download audio software to hear the conference call. Those interested in listening via telephone can access the conference call at (800) 576-5247. A replay of the conference call will be available via phone through May 6, 2003 at (800) 633-8284, passcode #21136118 or via the Internet at the company’s website.

Some of the information presented in this release is forward-looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995. Although Kilroy Realty Corporation believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that could cause actual results to differ materially from Kilroy Realty’s expectations are set forth as risk factors in the company’s Securities and Exchange Commission reports and filings. Included among these factors are changes in general economic conditions, including changes in the economic conditions affecting industries in which its principal tenants compete; any failure of the general economy to recover timely from the current economic downturn; Kilroy Realty’s ability to timely lease or re-lease space at current or anticipated rents; changes in interest

rates; changes in operating costs; future demand for its debt and equity securities; its ability to refinance its debt on reasonable terms at maturity; its ability to complete current and future development projects on schedule and on budget; the demand for office space in markets in which Kilroy Realty has a presence; and risks detailed from time to time in the company’s SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Many of these factors are beyond Kilroy Realty’s ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, Kilroy Realty claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of California and Washington. Principal submarkets for KRC’s current development program include West Los Angeles, El Segundo and coastal San Diego. At March 31, 2003, the company owned 7.1 million square feet of commercial office space and 4.9 million square feet of industrial space. More information can be found at www.kilroyrealty.com.

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KILROY REALTY CORPORATION

SUMMARY QUARTERLY RESULTS

(unaudited, in thousands, except per share data)

	Three Months Ended March 31, 2003			Three Months Ended March 31, 2002
Revenues from continuing operations	$	54,627		$	51,080
Revenues including discontinued operations	$	54,627		$	52,635
Net income available to common stockholders (1)	$	10,929		$	13,507
Weighted average common shares outstanding—basic		27,221			27,256
Weighted average common shares outstanding—diluted		27,430			27,550
Net income per share of common stock—basic	$	0.40		$	0.50
Net income per share of common stock—diluted	$	0.40		$	0.49
Funds From Operations (2)	$	26,320		$	27,153
Weighted average common shares/units outstanding—basic (3)		31,453			30,317
Weighted average common shares/units outstanding—diluted (3)		31,662			30,611
Funds From Operations per common share/unit—basic (3)	$	0.84		$	0.90
Funds From Operations per common share/unit—diluted (3)	$	0.83		$	0.89
Common shares outstanding at end of period		27,475			27,572
Common partnership units outstanding at end of period		4,222			4,458
Total common shares and units outstanding at end of period		31,697			32,030
	March 31, 2003			March 31, 2002
Stabilized portfolio occupancy rates:
Los Angeles		83.9	%		86.3	%
Orange County		98.7	%		97.3	%
San Diego		89.6	%		97.6	%
Other		97.2	%		98.6	%
Weighted average total		92.2	%		94.2	%
Total square feet of stabilized properties owned at end of period:
Office		7,055			7,357
Industrial		4,881			5,086
Total		11,936			12,443

(1) Net income after minority interests.

(2) Reconciliation of Net Income to Funds From Operations and management statement on Funds From Operations included at page 4.

(3) Calculated based on weighted average shares outstanding assuming conversion of all common limited partnership units outstanding.

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KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

	March 31, 2003			December 31, 2002
ASSETS
INVESTMENT IN REAL ESTATE:
Land and improvements	$	282,030		$	288,228
Buildings and improvements, net		1,258,593			1,289,525
Undeveloped land and construction in progress, net		166,346			108,465
Total investment in real estate		1,706,969			1,686,218
Accumulated depreciation and amortization		(290,365	)		(278,503	)
Investment in real estate, net		1,416,604			1,407,715
Cash and cash equivalents		7,787			15,777
Restricted cash		7,479			6,814
Current receivables, net		2,821			3,074
Deferred rent receivables, net		30,567			29,466
Deferred leasing costs, net		32,145			31,427
Deferred financing costs, net		5,394			6,221
Prepaid expenses and other assets		8,400			6,108
TOTAL ASSETS	$	1,511,197		$	1,506,602
LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES:
Secured debt	$	514,115		$	507,037
Unsecured line of credit		262,500			255,000
Accounts payable, accrued expenses and other liabilities		43,110			43,917
Accrued distributions		15,776			15,670
Rents received in advance, tenant security deposits and deferred revenue		19,434			24,310
Total liabilities		854,935			845,934
MINORITY INTERESTS:
8.075% Series A Cumulative Redeemable Preferred unitholders		73,716			73,716
9.375% Series C Cumulative Redeemable Preferred unitholders		34,464			34,464
9.250% Series D Cumulative Redeemable Preferred unitholders		44,321			44,321
Common unitholders of the Operating Partnership		67,000			68,196
Total minority interests		219,501			220,697
STOCKHOLDERS' EQUITY:
Common stock		273			273
Additional paid-in capital		493,244			493,116
Distributions in excess of earnings		(50,384	)		(47,629	)
Accumulated net other comprehensive loss		(6,372	)		(5,789	)
Total stockholders' equity		436,761			439,971
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,511,197		$	1,506,602

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KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended March 31, 2003			Three Months Ended March 31, 2002
REVENUES:
Rental income, net	$	44,264		$	43,928
Tenant reimbursements		5,779			5,431
Interest income		46			285
Other income		4,538			1,436
Total revenues		54,627			51,080
EXPENSES:
Property expenses		8,834			7,410
Real estate taxes		3,934			3,712
General and administrative expenses		3,858			2,968
Ground leases		319			383
Interest expense		7,744			9,325
Depreciation and amortization		13,948			12,583
Total expenses		38,637			36,381
Income from continuing operations before minority interests		15,990			14,699
Minority interests:
Distributions on Cumulative Redeemable Preferred units		(3,375	)		(3,375	)
Minority interest in earnings of Operating Partnership attributable to continuing operations		(1,686	)		(1,429	)
Recognition of previously reserved Development LLC preferred return					3,908
Minority interest in earnings of Development LLCs					(1,024	)
Total minority interests		(5,061	)		(1,920	)
Income from continuing operations		10,929			12,779
Discontinued operations:
Revenues from discontinued operations					1,555
Expenses from discontinued operations					(746	)
Net gain on disposition of discontinued operations
Minority interest in earnings of Operating Partnership attributable to discontinued operations					(81	)
Total discontinued operations					728
Net Income	$	10,929		$	13,507
Weighted average shares outstanding—basic		27,221			27,256
Weighted average shares outstanding—diluted		27,430			27,550
Net Income per common share—basic	$	0.40		$	0.50
Net Income per common share—diluted	$	0.40		$	0.49

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KILROY REALTY CORPORATION

FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended March 31, 2003		Three Months Ended March 31, 2002
Net income	$	10,929	$	13,507
Adjustments:
Minority interest in earnings of Operating Partnership		1,686		1,510
Depreciation and amortization		13,705		12,136
Net gains on dispositions of operating properties
Funds From Operations (1)	$	26,320	$	27,153
Weighted average common shares/units outstanding—basic		31,453		30,317
Weighted average common shares/units outstanding—diluted		31,662		30,611
Funds From Operations per common share/unit—basic	$	0.84	$	0.90
Funds From Operations per common share/unit—diluted	$	0.83	$	0.89

(1) Management believes that Funds From Operations ("FFO") is a useful supplemental measure of the Company's operating performance. The Company computes FFO in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). The White Paper defines FFO as net income or loss computed in accordance with generally accepted accounting principles ("GAAP"), excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable operating property, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships and joint ventures. Other real estate investment trusts ("REITs") may use different methodologies for calculating FFO and, accordingly, the Company's FFO may not be comparable to other REITs.

Because FFO excludes depreciation and amortization, gains and losses from property dispositions, and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, general and administrative expenses, and interest costs, providing perspective not immediately apparent from net income. In addition, management believes that FFO provides useful information to the investment community about the Company's financial performance when compared to other REITs since FFO is generally recognized as the industry standard for reporting the operations of REITs.

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

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