KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2012



	Initial Cost									Gross Amounts at Which Carried at Close of Period
Property Location	Encumb- rances			Land		Buildings and Improve- ments		Costs Capitalized Subsequent to Acquisition/ Improvement		Land		Buildings and Improve- ments		Total		Accumulated Depreciation		Deprecia- tion Life ⁽¹⁾	Date of Acquisition (A)/ Construction (C) ⁽²⁾		Rentable Square Feet ⁽³⁾(unaudited)
	(in thousands)
Office Properties:
23925 Park Sorrento Calabasas, California	$	11,210	⁽⁵⁾	$	50	$	2,346	$	304	$	50	$	2,650	$	2,700	$	1,293	35	2001	(C)	11,789
23975 Park Sorrento Calabasas, California			⁽⁵⁾	765		17,720		5,370		765		23,090		23,855		10,909		35	2002	(C)	100,592
24025 Park Sorrento Calabasas, California			⁽⁵⁾	845		15,896		3,716		845		19,612		20,457		9,913		35	2000	(C)	102,264
26541 Agoura Road Calabasas, California				1,979		9,630		9,798		1,979		19,428		21,407		9,765		35	1997	(A)	90,156
2240 E. Imperial Highway El Segundo, California				1,044		11,763		23,715		1,048		35,474		36,522		17,379		35	1983	(C)	122,870
2250 E. Imperial Highway El Segundo, California				2,579		29,062		23,009		2,547		52,103		54,650		40,489		35	1983	(C)	298,728
2260 E. Imperial Highway El Segundo, California				2,518		28,370		19,134		2,547		47,475		50,022		895		35	1983	(C)	298,728
909 Sepulveda Boulevard El Segundo, California	68,615		⁽⁶⁾	3,577		34,042		39,782		3,577		73,824		77,401		20,802		35	2005	(C)	241,607
999 Sepulveda Boulevard El Segundo, California			⁽⁶⁾	1,407		34,326		10,995		1,407		45,321		46,728		13,604		35	2003	(C)	128,504
3750 Kilroy Airport Way Long Beach, California						1,941		10,248				12,189		12,189		8,305		35	1989	(C)	10,457
3760 Kilroy Airport Way Long Beach, California						17,467		8,196				25,663		25,663		19,147		35	1989	(C)	165,278
3780 Kilroy Airport Way Long Beach, California						22,319		14,561				36,880		36,880		29,000		35	1989	(C)	219,745
3800 Kilroy Airport Way Long Beach, California						19,408		16,641				36,049		36,049		18,072		35	2000	(C)	192,476
3840 Kilroy Airport Way Long Beach, California						13,586		10,353				23,939		23,939		12,394		35	1999	(C)	136,026
3880 Kilroy Airport Way Long Beach, California						9,704		5,676				15,380		15,380		225		35	1997	(A)	⁽¹⁴	⁾
3900 Kilroy Airport Way Long Beach, California						12,615		8,264				20,879		20,879		10,966		35	1997	(A)	126,840
Kilroy Airport Center, Phase IV Long Beach, California(4)								2,087				2,087		2,087		2,087		35
12100 W. Olympic Boulevard Los Angeles, California				352		45,611		15,401		9,633		51,731		61,364		15,325		35	2003	(C)	150,167
12200 W. Olympic Boulevard Los Angeles, California				4,329		35,488		15,145		3,977		50,985		54,962		26,198		35	2000	(C)	150,302
12233 W. Olympic Boulevard Los Angeles, California	40,523		⁽⁷⁾	22,100		53,170		428		22,100		53,598		75,698		415		35	2012	(A)	151,029
12312 W. Olympic Boulevard Los Angeles, California				3,325		12,202		714		3,399		12,842		16,241		5,703		35	1997	(A)	78,000
6255 W. Sunset Boulevard Los Angeles, California	53,554		⁽⁸⁾	18,111		60,320		3,948		18,111		64,268		82,379		1,380		35	2012	(A)	321,883
1633 26th Street Santa Monica, California				2,080		6,672		3,147		2,040		9,859		11,899		4,889		35	1997	(A)	44,915
2100/2110 Colorado Avenue Santa Monica, California	97,000		⁽⁹⁾	5,474		26,087		13,114		5,476		39,199		44,675		13,927		35	1997	(A)	102,864
3130 Wilshire Boulevard Santa Monica, California				8,921		6,579		10,413		9,188		16,725		25,913		9,513		35	1997	(A)	88,339
501 Santa Monica Boulevard Santa Monica, California				4,547		12,044		6,427		4,551		18,467		23,018		9,456		35	1998	(A)	73,115
2829 Townsgate Road Thousand Oaks, California				5,248		8,001		5,585		5,248		13,586		18,834		7,221		35	1997	(A)	81,067
12225 El Camino Real Del Mar, California				1,700		9,633		2,992		1,683		12,642		14,325		4,943		35	1998	(A)	60,148
12235 El Camino Real Del Mar, California				1,507		8,543		4,495		1,530		13,015		14,545		6,375		35	1998	(A)	54,673
12340 El Camino Real Del Mar, California			⁽⁶⁾	4,201		13,896		7,369		4,201		21,265		25,466		6,809		35	2002	(C)	87,405
12390 El Camino Real Del Mar, California			⁽⁶⁾	3,453		11,981		1,263		3,453		13,244		16,697		6,840		35	2000	(C)	72,332
12348 High Bluff Drive Del Mar, California				1,629		3,096		3,451		1,629		6,547		8,176		4,413		35	1999	(C)	38,710
12400 High Bluff Drive Del Mar, California				15,167		40,497		11,609		15,167		52,106		67,273		16,183		35	2004	(C)	208,464

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION—(Continued)

December 31, 2012



	Initial Cost					Gross Amounts at Which Carried at Close of Period
Property Location	Encumb- rances	Land	Buildings and Improve- ments	Costs Capitalized Subsequent to Acquisition/ Improvement		Land	Buildings and Improve- ments	Total	Accumulated Depreciation	Deprecia- tion Life ⁽¹⁾	Date of Acquisition (A)/ Construction (C) ⁽²⁾		Rentable Square Feet ⁽³⁾(unaudited)
	(in thousands)
3579 Valley Centre Drive Del Mar, California		2,167	6,897	6,777		2,858	12,983	15,841	5,668	35	1999	(C)	52,375
3611 Valley Centre Drive Del Mar, California		4,184	19,352	15,868		5,259	34,145	39,404	15,193	35	2000	(C)	130,178
3661 Valley Centre Drive Del Mar, California		4,038	21,144	8,803		4,725	29,260	33,985	13,437	35	2001	(C)	129,752
3721 Valley Centre Drive Del Mar, California		4,297	18,967	5,692		4,254	24,702	28,956	7,612	35	2003	(C)	114,780
3811 Valley Centre Drive Del Mar, California		3,452	16,152	20,076		4,457	35,223	39,680	13,717	35	2000	(C)	112,067
6200 Greenwich Drive Governor Park, California		1,583	5,235	2,752		1,722	7,848	9,570	4,802	35	1999	(C)	71,000
6220 Greenwich Drive Governor Park, California		3,213	10,628	16,371		3,426	26,786	30,212	8,122	35	1997	(A)	141,214
15051 Avenue of Science I-15 Corridor, California		2,888	5,780	5,769		2,888	11,549	14,437	5,119	35	2002	(C)	70,617
15073 Avenue of Science I -15 Corridor, California		2,070	5,728	1,648		2,070	7,376	9,446	3,543	35	2002	(C)	46,759
15231 Avenue of Science I-15 Corridor, California		2,233	8,830	4,888		2,233	13,718	15,951	3,993	35	2005	(C)	65,638
15253 Avenue of Science I-15 Corridor, California		1,548	6,423	1,571		1,548	7,994	9,542	1,998	35	2005	(C)	37,437
15333 Avenue of Science I-15 Corridor, California		2,371	16,500	3,424		2,371	19,924	22,295	3,881	35	2006	(C)	78,880
15378 Avenue of Science I-15 Corridor, California		3,565	3,796	3,156		3,565	6,952	10,517	3,141	35	1998	(A)	68,910
15435 Innovation Drive I-15 Corridor, California		2,143	6,311	2,612		2,046	9,020	11,066	4,494	35	2000	(C)	49,863
15445 Innovation Drive I-15 Corridor, California		2,143	6,311	5,146		2,046	11,554	13,600	5,521	35	2000	(C)	51,500
13280 Evening Creek Drive South I-15 Corridor, California		3,701	8,398	2,937		3,701	11,335	15,036	1,733	35	2008	(C)	41,665
13290 Evening Creek Drive South I-15 Corridor, California		5,229	11,871	1,458		5,229	13,329	18,558	1,593	35	2008	(C)	61,176
13480 Evening Creek Drive North I-15 Corridor, California		7,997		41,733		7,997	41,733	49,730	6,852	35	2008	(C)	149,817
13500 Evening Creek Drive North I-15 Corridor, California		7,581	35,903	11,338		7,580	47,242	54,822	11,744	35	2004	(A)	147,533
13520 Evening Creek Drive North I-15 Corridor, California		7,581	35,903	12,376		7,580	48,280	55,860	12,818	35	2004	(A)	141,129
7525 Torrey Santa Fe 56 Corridor, California		2,348	28,035	4,060		2,348	32,095	34,443	6,488	35	2007	(C)	103,979
7535 Torrey Santa Fe 56 Corridor, California		2,950	33,808	5,991		2,950	39,799	42,749	8,306	35	2007	(C)	130,243
7545 Torrey Santa Fe 56 Corridor, California		2,950	33,708	8,117		2,950	41,825	44,775	9,330	35	2007	(C)	130,354
7555 Torrey Santa Fe 56 Corridor, California		2,287	24,916	3,712		2,287	28,628	30,915	5,757	35	2007	(C)	101,236
2355 Northside Drive Mission Valley, California		4,066	8,332	706		3,270	9,834	13,104	1,279	35	2010	(A)	53,610
2365 Northside Drive Mission Valley, California		7,359	15,257	(83	)	5,919	16,614	22,533	1,874	35	2010	(A)	91,260
2375 Northside Drive Mission Valley, California		3,947	8,146	188		3,175	9,106	12,281	1,172	35	2010	(A)	51,516
2385 Northside Drive Mission Valley, California		2,752	14,513	3,738		5,759	15,244	21,003	1,757	35	2010	(A)	88,795
2305 Historic Decatur Road Point Loma, California		5,240	22,220	435		5,240	22,655	27,895	1,621	35	2010	(A)	103,900
10020 Pacific Mesa Boulevard Sorrento Mesa, California		8,007	52,189	15,348		8,007	67,537	75,544	14,967	35	2007	(C)	318,000
4910 Directors Place Sorrento Mesa, California		2,240	13,039	6,548		2,240	19,587	21,827	1,906	35	2009	(C)	50,925
4921 Directors Place Sorrento Mesa, California		3,792	11,091	4,748		3,792	15,839	19,631	2,121	35	2008	(C)	56,136
4939 Directors Place Sorrento Mesa, California		2,225	12,698	4,359		2,198	17,084	19,282	7,021	35	2002	(C)	60,662
4955 Directors Place Sorrento Mesa, California		2,521	14,122	3,696		3,179	17,160	20,339	10,400	35	2000	(C)	76,246

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION—(Continued)

December 31, 2012



	Initial Cost						Gross Amounts at Which Carried at Close of Period
Property Location	Encumb- rances		Land	Buildings and Improve- ments	Costs Capitalized Subsequent to Acquisition/ Improvement		Land	Buildings and Improve- ments	Total	Accumulated Depreciation	Deprecia- tion Life ⁽¹⁾	Date of Acquisition (A)/ Construction (C) ⁽²⁾		Rentable Square Feet ⁽³⁾(unaudited)
	(in thousands)
5005 Wateridge Vista Drive Sorrento Mesa, California			3,320	5,049	2,026		3,320	7,075	10,395	3,193	35	1999	(C)	61,460
5010 Wateridge Vista Drive Sorrento Mesa, California			3,786	10,767	27,132		15,620	26,065	41,685	172	35	1999	(C)	111,318
10770 Wateridge Circle Sorrento Mesa, California			4,560	26,671	184		4,560	26,855	31,415	3,307	35	2011	(A)	174,310
6055 Lusk Avenue Sorrento Mesa, California			3,935	8,008	5,919		3,942	13,920	17,862	6,209	35	1997	(A)	93,000
6260 Sequence Drive Sorrento Mesa, California			3,206	9,803	1,291		3,212	11,088	14,300	5,205	35	1997	(A)	130,536
6290 Sequence Drive Sorrento Mesa, California			2,403	7,349	4,906		2,407	12,251	14,658	6,204	35	1997	(A)	90,000
6310 Sequence Drive Sorrento Mesa, California			2,940	4,946	190		2,941	5,135	8,076	2,689	35	2000	(C)	62,415
6340 Sequence Drive Sorrento Mesa, California			2,434	7,302	9,963		2,464	17,235	19,699	8,245	35	1998	(A)	66,400
6350 Sequence Drive Sorrento Mesa, California			4,941	14,824	(4,387	)	4,922	10,456	15,378	5,633	35	1998	(A)	132,600
10390 Pacific Center Court Sorrento Mesa, California			3,267	5,779	7,500		3,267	13,279	16,546	4,481	35	2002	(C)	68,400
10394 Pacific Center Court Sorrento Mesa, California			2,696	7,134	(782	)	1,671	7,377	9,048	3,217	35	1998	(A)	59,630
10398 Pacific Center Court Sorrento Mesa, California			1,947	5,152	1,316		1,222	7,193	8,415	2,824	35	1998	(A)	43,645
10421 Pacific Center Court Sorrento Mesa, California			2,926	7,979	21,999		2,926	29,978	32,904	11,682	35	1998	(A)	75,899
10445 Pacific Center Court Sorrento Mesa, California			2,247	5,945	567		1,809	6,950	8,759	2,911	35	1998	(A)	48,709
10455 Pacific Center Court Sorrento Mesa, California			4,044	10,701	(2,251	)	3,780	8,714	12,494	3,684	35	1998	(A)	90,000
5717 Pacific Center Boulevard Sorrento Mesa, California			2,693	6,280	4,219		2,693	10,499	13,192	2,721	35	2001	(C)	67,995
4690 Executive Drive UTC, California		⁽⁶⁾	1,623	7,926	2,394		1,623	10,320	11,943	5,009	35	1999	(A)	47,212
9785 Towne Center Drive UTC, California			2,722	9,932	(1,077	)	2,329	9,248	11,577	3,633	35	1999	(A)	75,534
9791 Towne Center Drive UTC, California			1,814	6,622	1,121		2,217	7,340	9,557	2,883	35	1999	(A)	50,466
8101 Kaiser Boulevard Anaheim, California			2,369	6,180	2,091		2,377	8,263	10,640	4,342	35	1997	(A)	59,790
2211 Michelson Irvine, California		⁽⁹⁾	9,319	82,836	1,507		9,319	84,343	93,662	7,926	35	2010	(A)	271,556
111 Pacifica Irvine, California			5,165	4,653	4,254		5,166	8,906	14,072	4,975	35	1997	(A)	67,496
999 Town & Country Orange, California			7,867	9,579	219		7,867	9,798	17,665	1,110	35	2010	(A)	98,551
4100 Bohannon Drive, Menlo Park, California			4,835	15,526	(18	)	4,835	15,508	20,343	457	35	2012	(A)	46,614
4200 Bohannon Drive, Menlo Park, California			4,798	15,406	(413	)	4,798	14,993	19,791	446	35	2012	(A)	46,255
4300 Bohannon Drive, Menlo Park, California			6,527	20,958	268		6,527	21,226	27,753	589	35	2012	(A)	62,920
4400 Bohannon Drive, Menlo Park, California			4,798	15,406	551		4,798	15,957	20,755	451	35	2012	(A)	46,255
4500 Bohannon Drive, Menlo Park, California			6,527	20,957	1,041		6,527	21,998	28,525	655	35	2012	(A)	62,920
4600 Bohannon Drive, Menlo Park, California			4,798	15,406	67		4,798	15,473	20,271	363	35	2012	(A)	46,255
4700 Bohannon Drive, Menlo Park, California			6,527	20,958	821		6,527	21,779	28,306	636	35	2012	(A)	62,920
303 Second Street San Francisco, California	135,000	⁽¹⁰⁾	63,550	154,153	18,442		63,550	172,595	236,145	17,837	35	2010	(A)	740,047
100 First Street San Francisco, California			49,150	131,238	11,188		49,150	142,426	191,576	11,851	35	2010	(A)	466,490

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION—(Continued)

December 31, 2012



	Initial Cost										Gross Amounts at Which Carried at Close of Period
Property Location	Encumb- rances			Land		Buildings and Improve- ments		Costs Capitalized Subsequent to Acquisition/ Improvement			Land		Buildings and Improve- ments		Total		Accumulated Depreciation		Deprecia- tion Life ⁽¹⁾	Date of Acquisition (A)/ Construction (C) ⁽²⁾		Rentable Square Feet ⁽³⁾(unaudited)
	(in thousands)
250 Brannan Street San Francisco, California				7,630		22,770		1,252			7,630		24,022		31,652		2,215		35	2011	(A)	92,948
201 Third Street San Francisco, California				19,260		84,018		13,803			19,260		97,821		117,081		7,397		35	2011	(A)	332,893
301 Brannan Street San Francisco, California				5,910		22,450		1,008			5,910		23,458		29,368		1,065		35	2011	(A)	74,430
360 Third Street San Francisco, California								13,749			—		13,749		13,749		923		35	2011	(A)	⁽¹⁵	⁾
4040 Civic Center San Rafael, California				10,210		18,029		396			10,210		18,425		28,635		1,262		35	2011	(A)	130,237
599 Mathilda Sunnyvale, California				13,538		12,559		—			13,538		12,559		26,097		—		35	2012	(A)	75,810
601 108th Avenue Bellevue, Washington				—		214,095		1,222			—		215,317		215,317		13,857		35	2011	(A)	488,470
10900 NE 4th Street Bellevue, Washington	83,116		⁽¹¹⁾	25,080		150,877		1,665			25,080		152,542		177,622		2,526		35	2012	(A)	416,755
10220 NE Points Drive Kirkland, Washington	28,384		⁽¹²⁾	2,554		12,080		402			2,554		12,482		15,036		830		35	2011	(A)	49,851
10230 NE Points Drive Kirkland, Washington			⁽¹²⁾	5,071		24,694		2,669			5,071		27,363		32,434		1,728		35	2011	(A)	98,982
10210 NE Points Drive Kirkland, Washington			⁽¹²⁾	4,336		24,187		892			4,336		25,079		29,415		1,583		35	2011	(A)	84,641
3933 Lake Washington Boulevard NE Kirkland, Washington			⁽¹²⁾	2,380		15,114		990			2,380		16,104		18,484		958		35	2011	(A)	46,450
15050 N.E. 36th Street Redmond, Washington				9,260		34,650		197			9,260		34,847		44,107		2,404		35	2010	(A)	122,103
837 N. 34th Street Lake Union, Washington				—		37,404		352			—		37,756		37,756		888		35	2012	(A)	111,580
701 N. 34th Street Lake Union, Washington	34,000		⁽¹³⁾	—		48,027		(140		)	—		47,887		47,887		1,172		35	2012	(A)	138,995
801 N. 34th Street Lake Union, Washington			⁽¹³⁾	—		58,537		(360		)	—		58,177		58,177		1,239		35	2012	(A)	169,412
17150 Von Karman Irvine, California				4,848		7,342		2,224			7,301		7,113		14,414		7,113		35	1997	(A)	⁽¹⁶	⁾
TOTAL OPERATING PROPERTIES	$	551,402		$	587,387	$	2,644,476	$	715,877		$	612,714	$	3,335,026	$	3,947,740	$	756,515				13,249,780
Undeveloped land and construction in progress⁽¹⁸⁾	2,517		⁽¹⁷⁾	521,633		90,512		197,509			521,633		288,021		809,654		—
TOTAL ALL PROPERTIES	$	553,919	⁽¹⁹⁾	$	1,109,020	$	2,734,988	$	913,386		$	1,134,347	$	3,623,047	$	4,757,394	$	756,515				13,249,780

__________________________


(1)	The initial costs of buildings are depreciated over 35 years using a straight-line method of accounting; improvements capitalized subsequent to acquisition are depreciated over the shorter of the lease term or useful life, generally ranging from one to 20 years.


(2)	Represents our date of construction or acquisition, or our predecessor, the Kilroy Group.


(3)	Includes square footage from our stabilized portfolio.


(4)	These costs represent infrastructure costs incurred in 1989. During the third quarter of 2009, we exercised our option to terminate the ground lease at Kilroy Airport Center, Phase IV in Long Beach, California. We had previously leased this land, which is adjacent to our Office Properties at Kilroy Airport Center, Long Beach, for potential future development opportunities.


(5)	These properties secure a $11.2 million mortgage note.


(6)	These properties secure a $68.6 million mortgage note.


(7)	This property secures a $40.5 million mortgage note.


(8)	This property secures a $53.6 million mortgage note.


(9)	These properties secure a $97.0 million mortgage note.


(10)	This property secures a $135.0 million mortgage note.


(11)	This property secures a $83.1 million mortgage note.


(12)	These properties secure a $28.4 million mortgage note.


(13)	These properties secure a $34.0 million mortgage note.


(14)	Excludes approximately 98,000 rentable square feet as this building was under redevelopment at December 31, 2012. A portion of the cost basis is included in "Undeveloped land and construction in progress" below.


(15)	Excludes approximately 410,000 rentable square feet as this building was under redevelopment at December 31, 2012. The cost basis is included in "Undeveloped land and construction in progress" below.


(16)	During the fourth quarter of 2011, we completed demolition of the industrial building on this site to prepare for the possible sale of the land, since we successfully obtained entitlements to reposition this site for residential use. Our ultimate decision to sell this site and the timing of any potential future sale will depend upon market conditions and other factors.


(17)	Represents the principal balance of the public facility bonds (the “Bonds”), the proceeds from which were used to finance infrastructure improvements on one of our undeveloped land parcels. The Bonds are secured by property tax payments.


(18)	Includes initial cost of 9455 Towne Center Drive, which was transferred to the future development portfolio and is included in construction in progress during the year ended December 31, 2012.


(19)	Represents gross aggregate principal amount before the effect of the unamortized premium of approximately $7.2 million as of December 31, 2012.

The aggregate gross cost of property included above for federal income tax purposes approximated $4.1 billion as of December 31, 2012.

The following table reconciles the historical cost of total real estate held for investment from January 1, 2010 to December 31, 2012:



	Year Ended December 31,
	2012			2011			2010
	(in thousands)
Total real estate held for investment, beginning of year	$	3,798,690		$	3,216,871		$	2,520,083
Additions during period:
Acquisitions	1,023,384			617,923			643,776
Improvements, etc.	207,345			84,736			86,754
Total additions during period	1,230,729			702,659			730,530
Deductions during period:
Cost of real estate sold	(264,533		)	(21,052		)	(17,456		)
Properties held for sale	—			(89,937		)	—
Other ⁽¹⁾	(7,492		)	(9,851		)	(16,286		)
Total deductions during period	(272,025		)	(120,840		)	(33,742		)
Total real estate held for investment, end of year	$	4,757,394		$	3,798,690		$	3,216,871

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(1)	Related to the redevelopment property transferred to construction in progress during the year.

The following table reconciles the accumulated depreciation from January 1, 2010 to December 31, 2012:



	Year Ended December 31,
	2012			2011			2010
	(in thousands)
Accumulated depreciation, beginning of year	$	742,503		$	672,429		$	605,976
Additions during period:
Depreciation of real estate	125,906			105,982			86,288
Total additions during period	125,906			105,982			86,288
Deductions during period:
Write-offs due to sale	(109,797		)	(11,152		)	(3,549		)
Properties held for sale	—			(14,905		)	—
Other ⁽¹⁾	(2,097		)	(9,851		)	(16,286		)
Total deductions during period	(111,894		)	(35,908		)	(19,835		)
Accumulated depreciation, end of year	$	756,515		$	742,503		$	672,429

__________________________


(1)	Related to the redevelopment property transferred to construction in progress during the year.