EX-99.1 2 exhibit991.htm EX-99.1 Document

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Q2 2023 Supplemental Financial Report
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Table of Contents
Page
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28
29
31-33
35-38
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 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 entertainment 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; 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, 2022, 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.
Pictured on cover page, in order of appearance: Kilroy Oyster Point - Phase II, South San Francisco, CA | Aero Long Beach, Long Beach, CA | Columbia Square, Hollywood, CA



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01
Corporate Data and Financial Highlights

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



Q2 2023 Supplemental Financial Report
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Company Background

Kilroy Realty Corporation (NYSE: KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin, Texas. The Company has over seven decades of experience developing, acquiring and managing office, life science and mixed-use real estate assets. At June 30, 2023, the Company’s stabilized portfolio totaled approximately 16.2 million square feet of primarily office and life science space that was 86.6% occupied and 88.6% leased. The Company also has 1,001 residential units in the Los Angeles and San Diego regions, which had an average occupancy of 92.7% for the quarter ended June 30, 2023. 
Board of DirectorsExecutive and Senior Management TeamInvestor Relations
John KilroyChairmanJohn KilroyChief Executive Officer12200 W. Olympic Blvd., Suite 200
Los Angeles, CA 90064
(310) 481-8400
Web: www.kilroyrealty.com
E-mail: investorrelations@kilroyrealty.com
Edward F. Brennan, PhDLead IndependentJustin W. SmartPresident
Jolie HuntEliott TrencherExecutive VP, Chief Financial Officer and Chief Investment Officer
Scott S. Ingraham
Louisa G. RitterRobert ParatteExecutive VP, Chief Leasing Officer and Senior Advisor to the Chairman
Gary R. Stevenson
Peter B. StonebergHeidi R. RothExecutive VP, Chief Administrative Officer
Bill Hutcheson
John OsmondExecutive VP, Head of Asset ManagementSenior VP, Investor Relations & Capital Markets
Merryl WerberSenior VP, Chief Accounting Officer and Controller
Equity Research Coverage
BofA SecuritiesJefferies LLC
Camille Bonnel(416) 369-2140Peter Abramowitz(212) 336-7241
BMO Capital Markets Corp.J.P. Morgan
John P. Kim(212) 885-4115Anthony Paolone(212) 622-6682
BTIGMizuho Securities USA LLC
Thomas Catherwood(212) 738-6140Vikram Malhotra(212) 282-3827
Citigroup Investment ResearchRBC Capital Markets
Michael Griffin(212) 816-5871Mike Carroll(440) 715-2649
Deutsche Bank Securities, Inc.Scotiabank
Derek Johnston(210) 250-5683Nicholas Yulico(212) 225-6904
Evercore ISIWells Fargo
Steve Sakwa(212) 446-9462Blaine Heck(443) 263-6529
Goldman Sachs & Co. LLCWolfe Research
Caitlin Burrows(212) 902-4736Andrew Rosivach(646) 582-9250
Green Street Advisors
Dylan Burzinski(949) 640-8780
Kilroy Realty Corporation is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Kilroy Realty Corporation’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Kilroy Realty Corporation or its management. Kilroy Realty Corporation does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.
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Q2 2023 Supplemental Financial Report
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Executive Summary
Quarterly Financial HighlightsQuarterly Operating Highlights
• Revenues grew 4.8% to $284.3 million compared to the prior year
• Stabilized portfolio was 86.6% occupied and 88.6% leased at quarter-end
• Net income available to common stockholders per diluted share of $0.47, an
• Approximately 274,000 square feet of leases commenced
   increase of 17.5% compared to the prior year
• Approximately 285,000 square feet of leases executed
• FFO per diluted share of $1.19, an increase of 1.7% compared to the prior year
GAAP rents increased 15.3% from prior levels
Both net income available to common stockholders per diluted share and
           FFO per diluted share for the current quarter include $0.03 of non-recurring
Cash rents increased 2.5% from prior levels
           items
• Same Store NOI decreased 2.3% compared to the prior year. Same Store Cash
    increased 2.7% compared to the prior year
Same Store NOI and Same Store Cash NOI includes $2.8 million and $0.4
           million of non-recurring income, respectively. Prior year Same Store NOI and
           Same Store Cash NOI includes $2.0 million and $1.6 million of non-recurring
           income, respectively.
Capital Markets HighlightsStrategic Highlights
• In July, entered into an eleven-year, non-recourse mortgage note for $375.0• In July, commenced GAAP revenue recognition at 9514 Towne Centre Drive, an
   million. The mortgage note bears interest at a fixed rate of 5.90% and matures   approximately 71,000 square foot office building in the University Towne Center
   on August 10, 2034   submarket of San Diego, and added the building to the stabilized portfolio. The
   building was moved to the tenant improvement phase upon completion of the
• As of the date of this report, approximately $1.9 billion of total liquidity comprised   core and shell in April and is 100% leased to a global technology company
   of approximately $660.0 million of cash and short term investments, including
   the proceeds from the mortgage note referenced above, $170.0 million available
   under the unsecured term loan facility and approximately $1.1 billion available
   under the unsecured revolving credit facility
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Note: Definitions for commonly used terms in this Supplemental Financial Report are on pages 35-36 “Definitions Included in Supplemental.”
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Q2 2023 Supplemental Financial Report
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Financial Highlights
(unaudited, $ in thousands, except per share amounts)
Three Months Ended
 6/30/2022
9/30/2022 (1)
12/31/20223/31/20236/30/2023
INCOME ITEMS AND DIVIDENDS:
Capitalized Interest and Debt Costs$19,491 $19,677 $19,216 $17,731 $19,470 
Cash Lease Termination Fees (2)
$374 $165 $503 $— $225 
Net Income Available to Common Stockholders per common share – diluted (3)
$0.40 $0.68 $0.45 $0.48 $0.47 
Funds From Operations per common share – diluted (4)
$1.17 $1.17 $1.17 $1.22 $1.19 
Dividends per common share (3)
$0.52 $0.54 $0.54 $0.54 $0.54 
EBITDA, as adjusted (5)
$170,511 $170,453 $174,421 $184,577 $178,020 
RATIOS:
Net Operating Income Margins71.5 %70.6 %70.3 %71.2 %69.9 %
Fixed Charge Coverage Ratio - Net Income1.4x2.3x1.5x1.6x1.4x
Fixed Charge Coverage Ratio - EBITDA4.6x4.5x4.4x4.6x4.1x
Net Income Payout Ratio113.7 %73.5 %107.2 %97.9 %104.3 %
FFO Payout Ratio44.0 %45.6 %45.6 %43.8 %45.0 %
FAD Payout Ratio54.4 %54.7 %60.9 %48.2 %53.4 %

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Note: Definitions for commonly used terms in this Supplemental Financial Report are on pages 35-36 “Definitions Included in Supplemental.”
(1)Net Income Available to Common Stockholders includes a $17.3 million of gain on sale of a depreciable operating property for the three months ended September 30, 2022.
(2)Represents cash receipts of lease termination fees in the period they are received, which may not correspond to the timing of GAAP revenue recognition of the lease termination fee over the remaining term of the lease.
(3)Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.
(4)Please refer to page 7 for reconciliations of GAAP Net Income Available to Common Stockholders to Funds From Operations available to common stockholders and unitholders and Funds Available for Distribution to common stockholders and unitholders and page 8 for a reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution to common stockholders and unitholders.
(5)Please refer to pages 37-38 for reconciliations of GAAP Net Income Available to Common Stockholders to Net Operating Income and EBITDA, as adjusted. The Company’s calculation of EBITDA, as adjusted, is the same as EBITDAre, as defined by Nareit, as the Company does not have any unconsolidated joint ventures.
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Q2 2023 Supplemental Financial Report
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Net Income Available to Common Stockholders / FFO Guidance and Outlook
(unaudited, $ and shares/units in thousands, except per share amounts)
The Company is providing an updated guidance range of Nareit-defined FFO per diluted share for its fiscal year 2023 of $4.43 to $4.53 per share with a midpoint of $4.48 per share.
Full Year 2023 Range
Low EndHigh End
Net income available to common stockholders per share - diluted$1.67 $1.77 
Weighted average common shares outstanding - diluted (1)
117,500 117,500 
Net income available to common stockholders$196,000 $208,000 
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership2,000 2,300 
Net income attributable to noncontrolling interests in consolidated property partnerships24,500 25,500 
Depreciation and amortization of real estate assets 340,000 340,000 
Gains on sales of depreciable real estate— — 
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships(34,500)(35,500)
Funds From Operations (2)
$528,000 $540,300 
Weighted average common shares and units outstanding - diluted (3)
119,200 119,200 
FFO per common share/unit - diluted (3)
$4.43 $4.53 
Key AssumptionsApril 2023 AssumptionsUpdated 2023 Assumptions
Same Store Cash NOI growth (2)
0.0% to 2.0%1.5% to 2.5%
Average occupancy86.50% to 88.00%86.75% to 87.75%
Total development spending (4)
$400 million to $500 million$425 million to $475 million
Dispositions$0 to $200 million$0 to $200 million
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(1)Calculated based on estimated weighted average shares outstanding including non-participating share-based awards.
(2)See pages 32-33 for Management Statements on Funds From Operations and Same Store Cash Net Operating Income.
(3)Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, 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.
(4)Remaining 2023 development spending is $250 million to $300 million.

The Company’s guidance estimates for the full year 2023, and the reconciliation of net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this report, 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 report. Although these guidance estimates reflect the impact on the Company’s operating results of an assumed range of future disposition activity, these guidance estimates do not include any estimates of possible future gains or losses from possible future dispositions because the magnitude of gains or losses on sales of depreciable operating properties, if any, will depend on the sales price and depreciated cost basis of the disposed assets at the time of disposition, information that is not known at the time the Company provides guidance, and the timing of any gain recognition will depend on the closing of the dispositions, information that is also not known at the time the Company provides guidance and may occur after the relevant guidance period. We caution you not to place undue reliance on our assumed range of future disposition activity because any potential future disposition transactions will ultimately depend on the market conditions and other factors, including but not limited to the Company’s capital needs, the particular assets being sold and the Company’s ability to defer some or all of the taxable gain on the sales. These guidance estimates also do not include the impact on operating results from potential future acquisitions, possible capital markets activity, possible future impairment charges or any events outside of the Company’s control. There can be no assurance that the Company’s actual results will not differ materially from these estimates.
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Consolidated Balance Sheets
(unaudited, $ in thousands)
6/30/20233/31/202312/31/20229/30/20226/30/2022
ASSETS:
Land and improvements$1,738,242 $1,738,242 $1,738,242 $1,743,194 $1,713,152 
Buildings and improvements8,353,596 8,335,285 8,302,081 7,693,247 7,530,547 
Undeveloped land and construction in progress1,894,545 1,788,542 1,691,860 2,183,071 2,272,508 
Total real estate assets held for investment11,986,383 11,862,069 11,732,183 11,619,512 11,516,207 
Accumulated depreciation and amortization(2,369,515)(2,294,202)(2,218,710)(2,150,060)(2,104,990)
Total real estate assets held for investment, net9,616,868 9,567,867 9,513,473 9,469,452 9,411,217 
Cash and cash equivalents361,885 476,358 347,379 249,981 210,044 
Restricted cash— — — 13,009 13,008 
Marketable securities25,786 23,288 23,547 22,390 22,988 
Current receivables, net10,686 15,926 20,583 15,885 13,268 
Deferred rent receivables, net463,640 457,870 452,200 442,987 435,549 
Deferred leasing costs and acquisition-related intangible assets, net230,559 238,184 250,846 214,484 217,026 
Right of use ground lease assets126,022 126,277 126,530 126,708 126,587 
Prepaid expenses and other assets, net75,588 63,622 62,429 65,096 65,554 
TOTAL ASSETS$10,911,034 $10,969,392 $10,796,987 $10,619,992 $10,515,241 
LIABILITIES AND EQUITY:
Liabilities:
Secured debt, net$240,142 $241,547 $242,938 $244,316 $245,680 
Unsecured debt, net4,172,833 4,171,029 4,020,058 3,823,532 3,822,482 
Accounts payable, accrued expenses and other liabilities377,733 418,902 392,360 424,087 357,253 
Ground lease liabilities124,678 124,837 124,994 125,065 125,277 
Accrued dividends and distributions64,438 64,461 64,285 64,271 61,880 
Deferred revenue and acquisition-related intangible liabilities, net185,429 195,629 195,959 176,105 176,845 
Rents received in advance and tenant security deposits78,187 80,565 81,432 82,839 73,273 
Total liabilities5,243,440 5,296,970 5,122,026 4,940,215 4,862,690 
Equity:
Stockholders’ Equity
Common stock1,172 1,171 1,169 1,169 1,169 
Additional paid-in capital5,184,227 5,175,402 5,170,760 5,162,088 5,151,705 
Retained earnings248,695 257,079 265,118 276,138 260,020 
Total stockholders’ equity5,434,094 5,433,652 5,437,047 5,439,395 5,412,894 
Noncontrolling Interests
Common units of the Operating Partnership53,358 53,386 53,524 53,475 53,289 
Noncontrolling interests in consolidated property partnerships180,142 185,384 184,390 186,907 186,368 
Total noncontrolling interests233,500 238,770 237,914 240,382 239,657 
Total equity5,667,594 5,672,422 5,674,961 5,679,777 5,652,551 
TOTAL LIABILITIES AND EQUITY$10,911,034 $10,969,392 $10,796,987 $10,619,992 $10,515,241 
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Q2 2023 Supplemental Financial Report
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Consolidated Statements of Operations
(unaudited, $ and shares in thousands, except per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
REVENUES
Rental income$281,309 $268,576 $571,413 $531,784 
Other property income2,973 2,608 5,671 4,901 
Total revenues284,282 271,184 577,084 536,685 
EXPENSES
Property expenses55,008 49,922 108,788 95,346 
Real estate taxes28,277 25,433 56,505 51,303 
Ground leases2,413 1,876 4,782 3,702 
General and administrative expenses22,659 22,120 46,595 44,901 
Leasing costs1,326 1,447 2,698 2,460 
Depreciation and amortization90,362 96,415 184,038 185,075 
Total expenses200,045 197,213 403,406 382,787 
OTHER INCOME (EXPENSES)
Interest and other income, net3,421 125 4,881 206 
Interest expense(26,383)(20,121)(52,054)(40,746)
Total other expenses(22,962)(19,996)(47,173)(40,540)
NET INCOME61,275 53,975 126,505 113,358 
Net income attributable to noncontrolling common units of the Operating Partnership(537)(515)(1,097)(1,031)
Net income attributable to noncontrolling interests in consolidated property partnerships (5,151)(6,355)(13,213)(12,094)
Total income attributable to noncontrolling interests(5,688)(6,870)(14,310)(13,125)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$55,587 $47,105 $112,195 $100,233 
Weighted average common shares outstanding – basic117,155 116,822 117,107 116,737 
Weighted average common shares outstanding – diluted117,360 117,185 117,383 117,123 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE
Net income available to common stockholders per share – basic$0.47 $0.40 $0.95 $0.85 
Net income available to common stockholders per share – diluted$0.47 $0.40 $0.95 $0.85 


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Q2 2023 Supplemental Financial Report
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Funds From Operations and Funds Available for Distribution
(unaudited, $ in thousands, except per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
FUNDS FROM OPERATIONS: (1)
Net income available to common stockholders$55,587 $47,105 $112,195 $100,233 
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership537 515 1,097 1,031 
Net income attributable to noncontrolling interests in consolidated property partnerships5,151 6,355 13,213 12,094 
Depreciation and amortization of real estate assets 88,473 94,718 180,144 181,719 
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships(7,895)(9,340)(18,837)(17,958)
Funds From Operations (1)(2)
$141,853 $139,353 $287,812 $277,119 
Weighted average common shares/units outstanding – basic (3)
118,930 118,584 118,874 118,606 
Weighted average common shares/units outstanding – diluted (4)
119,134 118,946 119,149 118,992 
FFO per common share/unit – basic (1)
$1.19 $1.18 $2.42 $2.34 
FFO per common share/unit – diluted (1)
$1.19 $1.17 $2.42 $2.33 
FUNDS AVAILABLE FOR DISTRIBUTION: (1)
Funds From Operations (1)(2)
$141,853 $139,353 $287,812 $277,119 
Adjustments:
Recurring tenant improvements, leasing commissions and capital expenditures(17,850)(18,893)(35,616)(32,178)
Amortization of deferred revenue related to tenant-funded tenant improvements (2)(5)
(4,912)(4,943)(10,097)(9,204)
Net effect of straight-line rents(5,720)(14,654)(11,339)(29,884)
Amortization of net below market rents (6)
(1,608)(2,739)(4,641)(5,631)
Amortization of deferred financing costs and net debt discount/premium1,254 816 2,609 1,637 
Non-cash amortization of share-based compensation awards7,721 7,960 17,764 13,216 
Lease related adjustments, leasing costs and other (7)
(2,106)4,152 3,356 5,416 
Adjustments attributable to noncontrolling interests in consolidated property partnerships 914 1,686 2,231 3,141 
Funds Available for Distribution (1)
$119,546 $112,738 $252,079 $223,632 
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(1)See page 33 for Management Statements on Funds From Operations and Funds Available for Distribution. Reported per common share/unit amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.
(2)FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of $4.9 million for the three months ended June 30, 2023 and 2022, and $10.1 million and $9.2 million for the six months ended June 30, 2023 and 2022, respectively. These amounts are adjusted out of FFO in our calculation of FAD.
(3)Calculated based on weighted average shares outstanding including participating share-based awards and assuming the exchange of all common limited partnership units outstanding.
(4)Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.
(5)Represents revenue recognized during the period as a result of the amortization of deferred revenue recorded for tenant-funded tenant improvements.
(6)Represents the non-cash adjustment related to the acquisition of buildings with above and/or below market rents.
(7)Includes other cash and non-cash adjustments attributable to lease-related matters including GAAP revenue recognition timing differences, leasing costs and other.
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Q2 2023 Supplemental Financial Report
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Reconciliation of GAAP Net Cash Provided by Operating Activities to Funds Available for Distribution
(unaudited, $ in thousands)
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
GAAP Net Cash Provided by Operating Activities
$101,414 $100,290 $283,550 $278,949 
Adjustments:
Recurring tenant improvements, leasing commissions and capital expenditures(17,850)(18,893)(35,616)(32,178)
Depreciation of non-real estate furniture, fixtures and equipment(1,889)(1,697)(3,894)(3,356)
Net changes in operating assets and liabilities (1)
41,727 46,129 21,202 5,308 
Noncontrolling interests in consolidated property partnerships share of FFO and FAD
(6,981)(7,654)(16,606)(14,817)
Cash adjustments related to investing and financing activities3,125 (5,437)3,443 (10,274)
Funds Available for Distribution (2)
$119,546 $112,738 $252,079 $223,632 
  
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(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; and rents received in advance and tenant security deposits. 
(2)Please refer to page 33 for a Management Statement on Funds Available for Distribution.

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Q2 2023 Supplemental Financial Report
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Net Operating Income (1)
(unaudited, $ in thousands)
Three Months Ended June 30,Six Months Ended June 30,
20232022% Change20232022% Change
Operating Revenues:
Rental income (2)
$234,571 $229,508 2.2 %$478,078 $455,780 4.9 %
Tenant reimbursements (2)
46,738 39,068 19.6 %93,335 76,004 22.8 %
Other property income2,973 2,608 14.0 %5,671 4,901 15.7 %
Total operating revenues284,282 271,184 4.8 %577,084 536,685 7.5 %
Operating Expenses:
Property expenses 55,008 49,922 10.2 %108,788 95,346 14.1 %
Real estate taxes28,277 25,433 11.2 %56,505 51,303 10.1 %
Ground leases2,413 1,876 28.6 %4,782 3,702 29.2 %
Total operating expenses85,698 77,231 11.0 %170,075 150,351 13.1 %
Net Operating Income$198,584 $193,953 2.4 %$407,009 $386,334 5.4 %

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(1)Please refer to page 31 for Management Statements on Net Operating Income and page 37 for a reconciliation of GAAP Net Income Available to Common Stockholders to Net Operating Income.
(2)Revenue from tenant reimbursements is included in rental income on our consolidated statements of operations.
9


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02
Portfolio Data

Same Store Analysis
Stabilized Portfolio Occupancy Overview by Region
Information on Leases Commenced & Leases Executed
Stabilized Portfolio Capital Expenditures
Stabilized Portfolio Lease Expirations
Top Fifteen Tenants
Consolidated Ventures (Noncontrolling Property Partnerships)


Q2 2023 Supplemental Financial Report
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Same Store Analysis (1)
(unaudited, $ in thousands)
Three Months Ended June 30,Six Months Ended June 30,
20232022% Change20232022% Change
Total Same Store Portfolio
Office Portfolio
Number of properties115 115 115 115 
Square Feet15,063,476 15,063,476 15,063,476 15,063,476 
Percent of Stabilized Portfolio92.9 %95.3 %92.9 %95.3 %
Average Occupancy87.8 %91.5 %89.1 %91.6 %
Operating Revenues:
Rental income (2)
$211,581 $215,845 (2.0)%$432,945 $430,283 0.6 %
Tenant reimbursements (2)
41,177 37,122 10.9 %83,069 72,405 14.7 %
Other property income 2,652 2,213 19.8 %5,061 4,229 19.7 %
Total operating revenues (3)
255,410 255,180 0.1 %521,075 506,917 2.8 %
Operating Expenses:
Property expenses51,413 47,949 7.2 %102,130 91,508 11.6 %
Real estate taxes 24,617 23,745 3.7 %49,195 48,242 2.0 %
Ground leases 1,923 1,772 8.5 %3,778 3,510 7.6 %
Total operating expenses77,953 73,466 6.1 %155,103 143,260 8.3 %
Net Operating Income (4)
$177,457 $181,714 (2.3)%$365,972 $363,657 0.6 %
Same Store Analysis (Cash Basis)
 Three Months Ended June 30,Six Months Ended June 30,
 20232022% Change20232022% Change
Total operating revenues (5)
$245,429 $236,467 3.8 %$508,815 $466,337 9.1 %
Total operating expenses77,853 73,356 6.1 %154,901 143,039 8.3 %
Cash Net Operating Income (4)
$167,576 $163,111 2.7 %$353,914 $323,298 9.5 %
________________________
(1)Same Store is defined as all properties owned and included in our stabilized portfolio as of January 1, 2022 and still owned and included in the stabilized portfolio as of June 30, 2023. Same Store includes 100% of consolidated property partnerships as well as our three residential properties.
(2)Revenue from tenant reimbursements is included in rental income on our consolidated statements of operations.
(3)For the three months ended June 30, 2023 and 2022, includes $2.8 million and $2.0 million of non-recurring income, respectively. For the six months ended June 30, 2023 and 2022, includes $8.7 million and $4.5 million of non-recurring income, respectively.
(4)Please refer to page 37 for a reconciliation of GAAP Net Income Available to Common Stockholders to Same Store Net Operating Income and Same Store Cash Net Operating Income. Adjustments to GAAP operating revenues include the net effect of straight-line rents, amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above and below market lease intangibles and revenue reversals (recoveries) related to tenant creditworthiness.
(5)For the three months ended June 30, 2023 and 2022, includes $0.4 million and $1.6 million of non-recurring income, respectively. For the six months ended June 30, 2023 and 2022, includes $12.5 million and $2.5 million of non-recurring income, respectively.
11

Q2 2023 Supplemental Financial Report
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Stabilized Portfolio Occupancy Overview by Region

Portfolio BreakdownOccupied atLeased at
STABILIZED PORTFOLIO (1)
BuildingsYTD NOI %SF %Total SF 6/30/20233/31/20236/30/2023
Greater Los Angeles
Culver City190.7 %1.0 %166,207 78.9 %78.9 %78.9 %
El Segundo52.8 %6.8 %1,103,595 75.8 %76.0 %76.0 %
Hollywood106.9 %7.4 %1,200,419 87.7 %89.7 %91.0 %
Long Beach72.0 %5.9 %957,706 84.3 %75.2 %89.4 %
West Hollywood40.8 %1.2 %189,459 81.9 %80.0 %89.3 %
West Los Angeles84.4 %4.5 %726,975 76.9 %80.9 %76.9 %
Total Greater Los Angeles5317.6 %26.8 %4,344,361 81.5 %80.8 %83.9 %
San Diego County
Del Mar1713.4 %11.0 %1,791,486 98.1 %98.5 %98.2 %
I-15 Corridor30.7 %2.7 %433,851 66.3 %67.3 %83.0 %
Little Italy / Point Loma2— %2.0 %313,983 32.1 %32.3 %42.3 %
University Towne Center11.0 %1.0 %160,444 100.0 %100.0 %100.0 %
Total San Diego County2315.1 %16.7 %2,699,764 85.4 %85.9 %89.4 %
San Francisco Bay Area
Menlo Park62.0 %2.0 %330,212 84.5 %84.5 %92.5 %
Mountain View33.1 %2.8 %457,066 100.0 %100.0 %100.0 %
Palo Alto21.3 %1.0 %165,574 100.0 %100.0 %100.0 %
Redwood City22.9 %2.1 %347,269 100.0 %100.0 %100.0 %
San Francisco1028.3 %21.0 %3,400,601 87.5 %91.9 %89.5 %
South San Francisco68.4 %5.0 %806,109 100.0 %100.0 %100.0 %
Sunnyvale44.0 %4.1 %663,460 100.0 %100.0 %100.0 %
Total San Francisco Bay Area3350.0 %38.0 %6,170,291 92.3 %94.7 %93.8 %
Greater Seattle
Bellevue25.3 %5.7 %919,295 93.6 %91.5 %95.2 %
Lake Union / Denny Regrade812.0 %12.8 %2,080,883 78.9 %97.0 %78.9 %
Total Greater Seattle1017.3 %18.5 %3,000,178 83.4 %95.3 %83.9 %
TOTAL STABILIZED PORTFOLIO119100.0 %100.0 %16,214,594 86.6 %89.6 %88.6 %

Average Occupancy
Quarter-to-DateYear-to-Date
87.4%88.6%
________________________
(1)Excludes residential properties.


12

Q2 2023 Supplemental Financial Report
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Stabilized Portfolio Occupancy Overview by Region, continued
 SubmarketSquare FeetOccupiedLeased
Greater Los Angeles, California
3101-3243 La Cienega BoulevardCulver City166,207 78.9 %78.9 %
2240 E. Imperial HighwayEl Segundo122,870 100.0 %100.0 %
2250 E. Imperial Highway (1)
El Segundo298,728 46.2 %46.2 %
2260 E. Imperial HighwayEl Segundo298,728 100.0 %100.0 %
909 N. Pacific Coast HighwayEl Segundo244,880 80.4 %81.1 %
999 N. Pacific Coast HighwayEl Segundo138,389 58.1 %58.1 %
1350 Ivar AvenueHollywood16,448 100.0 %100.0 %
1355 Vine StreetHollywood183,129 100.0 %100.0 %
1375 Vine StreetHollywood159,236 100.0 %100.0 %
1395 Vine StreetHollywood2,575 100.0 %100.0 %
1500 N. El Centro AvenueHollywood113,447 28.8 %63.6 %
1525 N. Gower StreetHollywood9,610 100.0 %100.0 %
1575 N. Gower StreetHollywood264,430 100.0 %100.0 %
6115 W. Sunset BoulevardHollywood26,238 53.0 %53.0 %
6121 W. Sunset BoulevardHollywood93,418 100.0 %100.0 %
6255 W. Sunset BoulevardHollywood331,888 83.5 %83.5 %
3750 Kilroy Airport WayLong Beach10,718 100.0 %100.0 %
3760 Kilroy Airport WayLong Beach166,761 96.1 %96.1 %
3780 Kilroy Airport WayLong Beach221,452 88.4 %94.3 %
3800 Kilroy Airport WayLong Beach192,476 87.7 %87.7 %
3840 Kilroy Airport WayLong Beach138,441 51.8 %77.6 %
3880 Kilroy Airport WayLong Beach96,923 100.0 %100.0 %
3900 Kilroy Airport WayLong Beach130,935 78.7 %78.7 %
8560 W. Sunset BoulevardWest Hollywood76,558 69.2 %87.6 %
8570 W. Sunset BoulevardWest Hollywood49,276 95.0 %95.0 %
8580 W. Sunset Boulevard (1)
West Hollywood6,875 0.0 %0.0 %
8590 W. Sunset BoulevardWest Hollywood56,750 97.4 %97.4 %
12100 W. Olympic BoulevardWest Los Angeles155,679 100.0 %100.0 %
12200 W. Olympic BoulevardWest Los Angeles154,544 84.7 %84.7 %
12233 W. Olympic BoulevardWest Los Angeles156,746 54.2 %54.2 %
12312 W. Olympic BoulevardWest Los Angeles76,644 100.0 %100.0 %
2100/2110 Colorado AvenueWest Los Angeles104,853 55.4 %55.4 %
501 Santa Monica BoulevardWest Los Angeles78,509 67.8 %67.8 %
Total Greater Los Angeles 4,344,361 81.5 %83.9 %
 
________________________
(1)This property is part of a complex of properties and is analyzed at the complex level.
13

Q2 2023 Supplemental Financial Report
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Stabilized Portfolio Occupancy Overview by Region, continued
SubmarketSquare FeetOccupiedLeased
San Diego County, California
12225 El Camino RealDel Mar58,401 100.0 %100.0 %
12235 El Camino RealDel Mar53,751 100.0 %100.0 %
12340 El Camino Real *Del Mar109,307 100.0 %100.0 %
12390 El Camino RealDel Mar73,238 100.0 %100.0 %
12770 El Camino RealDel Mar75,035 100.0 %100.0 %
12780 El Camino RealDel Mar140,591 100.0 %100.0 %
12790 El Camino RealDel Mar87,944 100.0 %100.0 %
12830 El Camino RealDel Mar196,444 100.0 %100.0 %
12860 El Camino RealDel Mar92,042 100.0 %100.0 %
12348 High Bluff DriveDel Mar39,192 100.0 %100.0 %
12400 High Bluff Drive *Del Mar216,518 91.7 %91.7 %
3579 Valley Centre Drive
Del Mar54,960 94.7 %94.7 %
3611 Valley Centre Drive Del Mar132,425 96.4 %96.4 %
3661 Valley Centre DriveDel Mar131,662 100.0 %100.0 %
3721 Valley Centre DriveDel Mar115,193 100.0 %100.0 %
3811 Valley Centre DriveDel Mar118,912 100.0 %100.0 %
3745 Paseo PlaceDel Mar95,871 90.3 %93.8 %
 13480 Evening Creek Drive NorthI-15 Corridor143,401 10.4 %55.6 %
13500 Evening Creek Drive NorthI-15 Corridor143,749 92.9 %92.9 %
13520 Evening Creek Drive NorthI-15 Corridor146,701 94.8 %100.0 %
2100 Kettner Boulevard *Little Italy206,527 0.0 %15.5 %
2305 Historic Decatur RoadPoint Loma107,456 93.9 %93.9 %
9455 Towne Centre DriveUniversity Towne Center160,444 100.0 %100.0 %
Total San Diego County2,699,764 85.4 %89.4 %
________________________
* Excluded from our Same Store portfolio.







14

Q2 2023 Supplemental Financial Report
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Stabilized Portfolio Occupancy Overview by Region, continued
 SubmarketSquare FeetOccupiedLeased
San Francisco Bay Area, California
4100 Bohannon DriveMenlo Park47,379 100.0 %100.0 %
4200 Bohannon DriveMenlo Park45,451 65.8 %65.8 %
4300 Bohannon DriveMenlo Park63,079 48.7 %85.3 %
4500 Bohannon DriveMenlo Park63,078 100.0 %100.0 %
4600 Bohannon DriveMenlo Park48,147 93.0 %100.0 %
4700 Bohannon DriveMenlo Park63,078 100.0 %100.0 %
1290-1300 Terra Bella Avenue Mountain View114,175 100.0 %100.0 %
680 E. Middlefield RoadMountain View171,676 100.0 %100.0 %
690 E. Middlefield RoadMountain View171,215 100.0 %100.0 %
1701 Page Mill RoadPalo Alto128,688 100.0 %100.0 %
3150 Porter DrivePalo Alto36,886 100.0 %100.0 %
900 Jefferson AvenueRedwood City228,505 100.0 %100.0 %
900 Middlefield RoadRedwood City118,764 100.0 %100.0 %
100 Hooper StreetSan Francisco417,914 95.5 %95.5 %
100 First StreetSan Francisco480,457 94.8 %98.8 %
303 Second StreetSan Francisco784,658 65.8 %71.9 %
201 Third StreetSan Francisco346,538 74.0 %74.0 %
360 Third StreetSan Francisco436,358 94.8 %94.8 %
250 Brannan StreetSan Francisco100,850 100.0 %100.0 %
301 Brannan StreetSan Francisco82,834 100.0 %100.0 %
333 Brannan StreetSan Francisco185,602 100.0 %100.0 %
345 Brannan StreetSan Francisco110,050 99.7 %99.7 %
350 Mission StreetSan Francisco455,340 99.7 %99.7 %
345 Oyster Point BoulevardSouth San Francisco40,410 100.0 %100.0 %
347 Oyster Point BoulevardSouth San Francisco39,780 100.0 %100.0 %
349 Oyster Point BoulevardSouth San Francisco65,340 100.0 %100.0 %
350 Oyster Point BoulevardSouth San Francisco234,892 100.0 %100.0 %
352 Oyster Point BoulevardSouth San Francisco232,215 100.0 %100.0 %
354 Oyster Point BoulevardSouth San Francisco193,472 100.0 %100.0 %
505 Mathilda AvenueSunnyvale212,322 100.0 %100.0 %
555 Mathilda AvenueSunnyvale212,322 100.0 %100.0 %
599 Mathilda AvenueSunnyvale76,031 100.0 %100.0 %
605 Mathilda AvenueSunnyvale162,785 100.0 %100.0 %
Total San Francisco Bay Area6,170,291 92.3 %93.8 %


15

Q2 2023 Supplemental Financial Report
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Stabilized Portfolio Occupancy Overview by Region, continued
SubmarketSquare FeetOccupiedLeased
Greater Seattle, Washington
601 108th Avenue NEBellevue490,738 99.8 %99.8 %
10900 NE 4th StreetBellevue428,557 86.5 %90.0 %
2001 West 8th AvenueDenny Regrade539,226 20.0 %20.0 %
333 Dexter Avenue North *Lake Union618,766 100.0 %100.0 %
701 N. 34th StreetLake Union141,860 100.0 %100.0 %
801 N. 34th StreetLake Union173,615 100.0 %100.0 %
837 N. 34th StreetLake Union112,487 100.0 %100.0 %
320 Westlake Avenue NorthLake Union184,644 96.1 %96.1 %
321 Terry Avenue NorthLake Union135,755 100.0 %100.0 %
401 Terry Avenue NorthLake Union174,530 100.0 %100.0 %
Total Greater Seattle3,000,178 83.4 %83.9 %
TOTAL STABILIZED PORTFOLIO16,214,594 86.6 %88.6 %
________________________
* Excluded from our Same Store portfolio.

Average Residential Occupancy
RESIDENTIAL PROPERTIESSubmarketTotal No. of UnitsQuarter-to-DateYear-to-Date
Greater Los Angeles
1550 N. El Centro AvenueHollywood20092.0%93.0%
6390 De Longpre AvenueHollywood19393.1%93.3%
San Diego County
3200 Paseo Village WayDel Mar60892.8%93.0%
TOTAL RESIDENTIAL PROPERTIES1,00192.7%93.0%
16

Q2 2023 Supplemental Financial Report
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Information on Leases Commenced (1)
Quarter to Date
# of Leases (2)
Square Feet (2)
Weighted
Average Lease
Term (Mo.)
TI/LC
Per Sq.Ft. (3)
TI/LC
Per Sq.Ft. /Year (3)
Changes in
GAAP Rents
Changes in
Cash Rents
NewRenewalNewRenewalTotal
2nd Generation15 16 146,704 122,323 269,027 80 $72.10 $10.81 18.5 %3.4 %
Development Leasing (4)
— 5,455 — 5,455 88 $121.62 $16.58 
TOTAL:16 16 152,159 122,323 274,482 

Year to Date
# of Leases (2)
Square Feet (2)
Weighted
Average Lease
Term (Mo.)
TI/LC
Per Sq.Ft. (3)
TI/LC
Per Sq.Ft. /Year (3)
Changes in
GAAP Rents
Changes in
Cash Rents
NewRenewalNewRenewalTotal
2nd Generation21 25 181,338 238,918 420,256 66 $54.55 $9.92 18.7 %4.2 %
Development Leasing (4)
— 5,455 — 5,455 88 $121.62 $16.58 
TOTAL:22 25 186,793 238,918 425,711 
________________________
(1)Includes 100% of consolidated property partnerships.
(2)Represents leasing activity for leases that commenced at properties in the stabilized and development and redevelopment portfolios during the period, net of month-to-month leases.
(3)Includes tenant improvement costs and third-party leasing commissions. Amounts exclude tenant-funded tenant improvements and indirect leasing costs.
(4)Represents leases commenced on new construction added to the stabilized portfolio and leasing activity for leases signed in our development and redevelopment portfolios.

17

Q2 2023 Supplemental Financial Report
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Information on Leases Executed (1)
Quarter to Date (2)
# of Leases (3)
Square Feet (3)
Weighted
Average Lease
Term (Mo.)
TI/LC
Per Sq.Ft. (4)
TI/LC
Per Sq.Ft. /Year (4)
Changes in
GAAP Rents
Changes in
Cash Rents
Retention
Rates
NewRenewalNewRenewalTotal
2nd Generation14 16 141,248 122,323 263,571 73 $65.69 $10.80 15.3 %2.5 %16.6 %
Development Leasing (5)
— 21,150 — 21,150 147 $185.15 $15.11 
TOTAL:16 16 162,398 122,323 284,721 

Year to Date (6)
# of Leases (3)
Square Feet (3)
Weighted
Average Lease
Term (Mo.)
TI/LC
Per Sq.Ft. (4)
TI/LC
Per Sq.Ft. /Year (4)
Changes in
GAAP Rents
Changes in
Cash Rents
Retention
Rates
NewRenewalNewRenewalTotal
2nd Generation26 25 311,109 238,918 550,027 62 $61.84 $11.97 9.4 %(1.1)%19.8 %
Development Leasing (5)
— 21,150 — 21,150 147 $185.15 $15.11 
TOTAL:28 25 332,259 238,918 571,177 
________________________
(1)Includes 100% of consolidated property partnerships.
(2)During the three months ended June 30, 2023, 15 new leases totaling 142,313 square feet were signed but not commenced as of June 30, 2023.
(3)Represents leasing activity for leases signed at properties in the stabilized portfolio during the period, net of month-to-month leases.
(4)Includes tenant improvement costs and third-party leasing commissions. Amounts exclude tenant-funded tenant improvements and indirect leasing costs.
(5)Represents leasing on new construction added to the stabilized portfolio and leasing activity for leases signed in our development and redevelopment portfolios.
(6)During the six months ended June 30, 2023, 20 new leases totaling 280,100 square feet were signed but not commenced as of June 30, 2023.


18

Q2 2023 Supplemental Financial Report
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Stabilized Portfolio Capital Expenditures
($ in thousands)
Total 2023Q2 2023Q1 2023
1st Generation (Nonrecurring) Capital Expenditures: (1)
Capital Improvements$500 $153 $347 
Tenant Improvements & Leasing Commissions (2)
— — — 
Total $500 $153 $347 
Total 2023Q2 2023Q1 2023
2nd Generation (Recurring) Capital Expenditures: (1)
Capital Improvements$14,560 $7,263 $7,297 
Tenant Improvements & Leasing Commissions (2)
21,056 10,587 10,469 
Total$35,616 $17,850 $17,766 
________________________
(1)Includes 100% of capital expenditures of consolidated property partnerships.
(2)Includes tenant improvement costs and third-party leasing commissions. Amounts exclude tenant-funded tenant improvements.

19

Q2 2023 Supplemental Financial Report
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Stabilized Portfolio Lease Expiration Summary (1)(2)
($ in thousands, except for annualized rent per sq. ft.)

chart-20423b58de3342a89b1a.jpg
# of Expiring Leases141625131616666065462638331417
% of Total Leased Sq. Ft.2.2 %2.0 %1.9 %1.0 %2.1 %2.8 %5.1 %13.9 %8.1 %8.0 %6.9 %11.1 %14.0 %7.7 %13.2 %
Annualized Base Rent$13,284$15,742$12,759$5,759$10,026$23,250$34,798$91,231$46,380$69,013$52,223$91,359$130,075$71,863$119,227
% of Total Annualized Base Rent (3)
1.7 %2.0 %1.6 %0.7 %1.3 %3.0 %4.4 %11.6 %5.9 %8.8 %6.6 %11.6 %16.5 %9.1 %15.2 %
Annualized Rent per Sq. Ft.$44.61$56.45$48.02$42.12$34.48$60.13$49.39$47.06$41.45$62.56$54.60$59.63$67.41$67.55$65.31
________________________
(1)For leases that have been renewed early with existing tenants, the expiration date and annualized base rent information presented takes into consideration the renewed lease terms. Excludes leases not commenced as of June 30, 2023, space leased under month-to-month leases, storage leases, vacant space and future lease renewal options not executed as of June 30, 2023.
(2)Adjusting for leasing transactions executed as of June 30, 2023 but not yet commenced, the 2023 and 2024 expirations would be reduced by 71,920 and 18,791 square feet, respectively.
(3)Includes 100% of annualized base rent of consolidated property partnerships.
20

Q2 2023 Supplemental Financial Report
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Stabilized Portfolio Lease Expiration Schedule by Region
($ in thousands, except for annualized rent per sq. ft.)
Year
Region# of
Expiring Leases
Total
Square Feet
% of Total
Leased Sq. Ft.
Annualized
Base Rent (1)
% of Total
Annualized
Base Rent
Annualized Rent
per Sq. Ft.
2023Greater Los Angeles20 291,239 2.1 %$16,036 2.0 %$55.06 
San Diego134,366 1.0 %5,797 0.8 %43.14 
San Francisco Bay Area146,783 1.1 %7,000 0.9 %47.69 
Greater Seattle4,286 — %193 — %45.03 
Total30 576,674 4.2 %$29,026 3.7 %$50.33 
2024Greater Los Angeles44 554,233 4.0 %$24,446 3.1 %$44.11 
San Diego26,689 0.2 %1,157 0.1 %43.35 
San Francisco Bay Area11 269,858 2.0 %18,040 2.3 %66.85 
Greater Seattle229,152 1.6 %8,151 1.1 %35.57 
Total70 1,079,932 7.8 %$51,794 6.6 %$47.96 
2025Greater Los Angeles27 196,823 1.5 %$8,661 1.1 %$44.00 
San Diego19 227,189 1.6 %11,625 1.5 %51.17 
San Francisco Bay Area124,014 0.9 %8,724 1.1 %70.35 
Greater Seattle11 156,575 1.1 %5,788 0.7 %36.97 
Total66 704,601 5.1 %$34,798 4.4 %$49.39 
2026Greater Los Angeles21 390,975 2.8 %$15,194 1.9 %$38.86 
San Diego12 211,451 1.5 %10,427 1.3 %49.31 
San Francisco Bay Area16 940,731 6.7 %49,414 6.3 %52.53 
Greater Seattle11 395,359 2.9 %16,196 2.1 %40.97 
Total60 1,938,516 13.9 %$91,231 11.6 %$47.06 
2027Greater Los Angeles35 723,000 5.2 %$26,665 3.4 %$36.88 
San Diego16 239,066 1.7 %11,926 1.5 %49.89 
San Francisco Bay Area70,381 0.6 %4,524 0.6 %64.28 
Greater Seattle10 86,543 0.6 %3,265 0.4 %37.73 
Total65 1,118,990 8.1 %$46,380 5.9 %$41.45 
2028
and
Beyond
Greater Los Angeles48 1,285,141 9.3 %$73,718 9.4 %$57.36 
San Diego56 1,448,644 10.5 %89,936 11.4 %62.08 
San Francisco Bay Area44 4,089,019 29.6 %296,756 37.7 %72.57 
Greater Seattle26 1,587,836 11.5 %73,350 9.3 %46.19 
Total174 8,410,640 60.9 %$533,760 67.8 %$63.46 
________________________
(1)Includes 100% of annualized base rent of consolidated property partnerships.
21

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Top Fifteen Tenants (1)
($ in thousands)  
Tenant Name (2)
Region
Annualized Base Rental Revenue (3)
Rentable
Square Feet
Percentage of
Total Annualized Base Rental Revenue
Percentage of
Total Rentable
Square Feet
Year(s) of Significant Lease Expiration(s) (4)
Global technology companyGreater Seattle /
San Diego County
$39,631 779,210 5.0 %4.8 %2032 - 2033
Cruise LLCSan Francisco Bay Area35,449 374,618 4.5 %2.3 %2031
Stripe, Inc.San Francisco Bay Area33,110 425,687 4.2 %2.6 %2034
Salesforce, Inc.San Francisco Bay Area /
Greater Seattle
30,100 613,497 3.8 %3.8 %2024 / 2029 - 2030 / 2032
LinkedIn Corporation / Microsoft CorporationSan Francisco Bay Area29,752 663,460 3.8 %4.1 %2024 / 2026
Adobe Systems, Inc.San Francisco Bay Area /
Greater Seattle
27,897 522,879 3.5 %3.2 %2027 / 2031
DoorDash, Inc.San Francisco Bay Area23,842 236,759 3.0 %1.5 %2032
Riot Games, Inc. (5)
Greater Los Angeles22,967 340,584 2.9 %2.1 %2023 - 2024 / 2031
Okta, Inc.San Francisco Bay Area22,387 273,371 2.8 %1.7 %2028
Netflix, Inc.Greater Los Angeles21,854 361,388 2.8 %2.2 %2032
Box, Inc.San Francisco Bay Area20,390 341,441 2.6 %2.1 %2028
Cytokinetics, Inc.San Francisco Bay Area18,167 234,892 2.3 %1.4 %2033
DIRECTV, LLCGreater Los Angeles16,085 532,956 2.0 %3.3 %2026 - 2027
Synopsys, Inc.San Francisco Bay Area15,492 342,891 2.0 %2.1 %2030
Amazon.comGreater Seattle14,989 340,705 1.9 %2.1 %2029 - 2030
Total Top Fifteen Tenants$372,112 6,384,338 47.1 %39.3 %
    
________________________
(1)The information presented is as of the date of the report.
(2)Includes subsidiaries of tenant listed.
(3)Includes 100% of annualized base rental revenues of consolidated property partnerships.
(4)We define significant lease expirations as those with space expiring greater than 25,000 rentable square feet.
(5)The 2023 lease expiration represents 6,416 rentable square feet expiring on July 31, 2023 and 158,371 rentable square feet expiring on November 30, 2023.

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Consolidated Ventures (Noncontrolling Property Partnerships)

Property (1)
Venture PartnerSubmarketRentable Square FeetKRC Ownership %
100 First Street, San Francisco, CANorges Bank Real Estate ManagementSan Francisco 480,45756%
303 Second Street, San Francisco, CANorges Bank Real Estate ManagementSan Francisco784,65856%
900 Jefferson Avenue and 900 Middlefield Road, Redwood City, CA (2)
Local developerRedwood City347,26993%
____________________
(1)For breakout of Net Operating Income by partnership, refer to page 37, Reconciliation of Net Income Available to Common Stockholders to Same Store Net Operating Income.
(2)Reflects the KRC ownership percentage at time of agreement. Actual percentage may vary depending on cash flows or promote structure.
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03
Development


In-Process Development & Redevelopment
Future Development Pipeline


Q2 2023 Supplemental Financial Report
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In-Process Development & Redevelopment
($ in millions)
LocationConstruction Start Date
Estimated Stabilization Date (2)
Estimated Rentable Square Feet (3)
Total Estimated Investment
Total Cash Costs Incurred as of
6/30/2023 (4)
% LeasedTotal Project % Occupied
TENANT IMPROVEMENT (1)
Office
Austin
Indeed TowerAustin CBD2Q 20214Q 2023734,000 $690.0 $635.6 74%61%
San Diego County
9514 Towne Centre DriveUniversity Towne Center3Q 20213Q 202371,000 60.0 42.4 100%—%
TOTAL:805,000 $750.0 $678.0 77%55%

UNDER CONSTRUCTIONLocationConstruction Start Date
Estimated Stabilization Date (2)
Estimated Rentable Square Feet (3)
Total Estimated Investment
Total Cash Costs Incurred as of
6/30/2023 (4)(5)
% Leased
Office / Life Science
San Francisco Bay Area
Kilroy Oyster Point - Phase 2South San Francisco2Q 20212Q 2025875,000 $940.0 $465.0 —%
4400 Bohannon Drive (6)
Menlo Park4Q 20223Q 202548,000 55.0 17.9 —%
San Diego County
4690 Executive Drive (6)(7)
University Towne Center1Q 20224Q 202452,000 $25.0 $18.1 —%
TOTAL:975,000 $1,020.0 $501.0 —%
________________________
(1)Represents projects that have reached cold shell condition and are ready for tenant improvements, which may require additional major base building construction before being placed in service.
(2)For office and retail, represents the earlier of anticipated 95% occupancy date or one year from substantial completion of base building components. For multi-phase projects, interest and carry cost capitalization may cease and recommence driven by various factors, including tenant improvement construction and other tenant related timing or project scope. For projects being redeveloped, redevelopment will occur in phases based on existing lease expiration dates and timing of the tenant improvement build-out.
(3)For projects being redeveloped, represents the total square footage leased.
(4)Represents costs incurred as of June 30, 2023, excluding GAAP accrued liabilities and leasing overhead.
(5)For redevelopment projects, includes the existing depreciated basis for the buildings to be redeveloped.
(6)Redevelopment project.
(7)The building was previously 100% leased to Sorrento Therapeutics, which declared Chapter 11 bankruptcy in February 2023 and rejected the lease on May 2, 2023.
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Future Development Pipeline
($ in millions)
FUTURE DEVELOPMENT PIPELINELocation
Approx. Developable
Square Feet (1)
Total Cash Costs Incurred as of 6/30/2023 (2)
Greater Los Angeles
1633 26th StreetWest Los Angeles190,000$15.0 
San Diego County
Santa Fe Summit South / North56 Corridor600,000 - 650,000111.2 
2045 Pacific HighwayLittle Italy275,00053.1 
Kilroy East VillageEast VillageTBD68.0 
San Francisco Bay Area
Kilroy Oyster Point - Phases 3 and 4South San Francisco875,000 - 1,000,000209.4 
Flower MartSOMA2,300,000513.5 
Greater Seattle
SIX0Denny Regrade925,000178.5 
Austin
Stadium TowerStadium District / Domain493,00066.1 
TOTAL:$1,214.8 
________________________
(1)Represents developable office/life science square feet. The developable square feet and scope of projects could change materially from estimated data provided due to one or more of the following: any significant changes in the economy, market conditions, our markets, tenant requirements and demands, construction costs, new supply, regulatory and entitlement processes or project design.
(2)Represents costs incurred as of June 30, 2023, excluding accrued liabilities recorded in accordance with GAAP.




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04
Debt and
Capitalization Data

Capital Structure
Debt Analysis


Q2 2023 Supplemental Financial Report
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Capital Structure
As of June 30, 2023 ($ in thousands)
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Debt Balance (3)
Stated RateMaturity Date
Unsecured Debt (4)
$425,000 3.45 %12/15/2024
$400,000 4.38 %10/1/2025
$50,000 4.30 %7/18/2026
$350,000 6.17 %
10/3/2026 (5)
$200,000 4.35 %10/18/2026
$175,000 3.35 %2/17/2027
$400,000 4.75 %12/15/2028
$75,000 3.45 %2/17/2029
$400,000 4.25 %8/15/2029
$500,000 3.05 %2/15/2030
$350,000 4.27 %1/31/2031
$425,000 2.50 %11/15/2032
$450,000 2.65 %11/15/2033
$4,200,000 3.85 %
Secured Debt
$158,196 3.57 %12/1/2026
$82,414 4.48 %7/1/2027
$240,610 3.88 %
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________________________
(1)Value based on closing share price of $30.09 as of June 30, 2023.
(2)Includes common units of the Operating Partnership not owned by the Company; does not include noncontrolling interests in consolidated property partnerships.
(3)Represents the gross aggregate principal amount due at maturity before the effect of unamortized deferred financing costs and premiums and discounts.
(4)As of June 30, 2023, there was no outstanding balance on the unsecured revolving credit facility.
(5)The maturity date of the unsecured term loan assumes the exercise of the two twelve-month extensions at the Company’s option.
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Debt Analysis
As of June 30, 2023
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TOTAL DEBT COMPOSITION (1)
Weighted Average
Interest Rate
Years to Maturity (2)
Secured vs. Unsecured Debt
Unsecured Debt3.9%5.7
Secured Debt3.9%3.6
Floating vs. Fixed-Rate Debt
Floating-Rate Debt6.2%3.3
Fixed-Rate Debt3.7%5.7
  
Stated Interest Rate3.9%5.6
GAAP Effective Rate3.9%
GAAP Effective Rate Including Debt Issuance Costs4.1%
 
KEY DEBT COVENANTS (3)
CovenantActual Performance
as of June 30, 2023
Unsecured Credit and Term Loan Facility and Private Placement Notes:
Total debt to total asset valueless than 60%29%
Fixed charge coverage ratiogreater than 1.5x3.9x
Unsecured debt ratiogreater than 1.67x3.36x
Unencumbered asset pool debt service coverage greater than 1.75x4.48x
Unsecured Senior Notes due 2024, 2025, 2028, 2029, 2030, 2032 and 2033:
Total debt to total asset valueless than 60%37%
Interest coveragegreater than 1.5x7.7x
Secured debt to total asset valueless than 40%2%
Unencumbered asset pool value to unsecured debtgreater than 150%279%
________________________
(1)As of June 30, 2023, there was no outstanding balance on the unsecured revolving credit facility.
(2)The maturity date of the unsecured term loan assumes the exercise of the two twelve-month extensions at the Company’s option.
(3)All covenant ratio titles utilize terms and are calculated as defined in the respective debt and credit agreements.
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05
Non-GAAP Supplemental
Measures


Q2 2023 Supplemental Financial Report
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Management Statements on Non-GAAP Supplemental Measures
Included in this section are 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 July 31, 2023 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 defines NOI as follows: consolidated operating revenues (rental income and other property income) less consolidated property and related expenses (property expenses, real estate taxes and ground leases). Other real estate investment trusts (“REITs”) may use different methodologies for calculating NOI, and accordingly, the Company’s NOI may not be comparable to other REITs.

Because NOI excludes leasing costs, general and administrative expenses, interest expense, depreciation and amortization, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects 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. The Company uses NOI to evaluate its operating performance on a portfolio basis since NOI allows 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 NOI provides useful information to the investment community about the Company’s financial and operating performance when compared to other REITs since NOI is generally recognized as a standard measure of performance in the real estate industry.

However, NOI should not be viewed as an alternative measure of the Company’s financial performance since it does not reflect general and administrative expenses, leasing costs, 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.

Same Store Net Operating Income:

Management believes that Same Store NOI is a useful supplemental measure of the Company’s operating performance. Same Store NOI represents the consolidated NOI for all of the properties that were owned and included in the Company's stabilized portfolio for two comparable reporting periods. Because Same Store NOI excludes the change in NOI from developed, redeveloped, acquired and disposed of and held for sale properties, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same Store NOI, and accordingly, the Company’s Same Store NOI may not be comparable to other REITs.

However, Same Store 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, nor does it reflect the impact of general and administrative expenses, leasing costs, 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.
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Management Statements on Non-GAAP Supplemental Measures, continued
Same Store Cash Net Operating Income:

Management believes that Same Store Cash NOI is a useful supplemental measure of the Company’s operating performance. Same Store Cash NOI represents the consolidated NOI for all of the properties that were owned and included in the Company’s stabilized portfolio for two comparable reporting periods, adjusted for the net effect of straight-line rents, amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above and below market lease intangibles, and the provision for bad debts. Because Same Store Cash NOI excludes the change in NOI from developed, redeveloped, acquired and 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. Other REITs may use different methodologies for calculating Same Store Cash NOI, and accordingly, our Same Store Cash NOI may not be comparable to other REITs.

However, Same Store 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, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs 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.

EBITDA, as adjusted:

Management believes that consolidated earnings before interest expense, depreciation and amortization, gain/loss on early extinguishment of debt, gains and losses on depreciable real estate, net income attributable to noncontrolling interests, preferred dividends and distributions, original issuance costs of redeemed preferred stock and preferred units, and impairment losses (“EBITDA, as adjusted”) is a useful supplemental measure of the Company’s operating performance. When considered with other GAAP measures and FFO, management believes EBITDA, as adjusted, 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 EBITDA, as adjusted, as it is used in several of the Company’s financial covenants for both its secured and unsecured debt. However, EBITDA, as adjusted, 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 EBITDA, as adjusted, and, accordingly, the Company’s EBITDA, as adjusted, may not be comparable to other REITs. The Company’s calculation of EBITDA, as adjusted, is the same as EBITDAre, as defined by Nareit, as the Company does not have any unconsolidated joint ventures.

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Management Statements on Non-GAAP Supplemental Measures, continued
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 extraordinary items, as defined by GAAP, gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, 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. Our 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. We also add back net income attributable to noncontrolling common units of the Operating Partnership because we report 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 all 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.

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 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 adding to FFO the non-cash amortization of deferred financing costs, debt discounts and premiums and share-based compensation awards, amortization of above (below) market rents for acquisition properties and non-cash executive compensation expense then subtracting recurring tenant improvements, leasing commissions and capital expenditures and eliminating the net effect of straight-line rents, amortization of deferred revenue related to tenant improvements, adjusting for other lease related items and amounts of gain or loss on marketable securities related to the Company’s executive deferred compensation plan that are capitalized as development costs, and after adjustment for 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 other REITs.
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06
Definitions and Reconciliations



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Definitions Included in Supplemental

Annualized Base Rent:
Includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes 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. Additionally, the underlying leases contain various expense structures including full service gross, modified gross and triple net. Amounts represent percentage of total portfolio annualized contractual base rental revenue.
Change in GAAP / Cash Rents (Leases Commenced):
Calculated as the change between GAAP / cash rents for new/renewed leases and the expiring GAAP / cash rents for the same space. May include leases for which re-leasing timing was impacted by the COVID-19 pandemic and restrictions intended to prevent its spread. Excludes leases for which the space was vacant when the property was acquired by the Company.
Change in GAAP / Cash Rents (Leases Executed):
Calculated as the change between GAAP / cash rents for signed leases and the expiring GAAP / cash rents for the same space. May include leases for which re-leasing timing was impacted by the COVID-19 pandemic and restrictions intended to prevent its spread. Excludes leases for which the space was vacant when the property was acquired by the Company.
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 and retail properties and upon 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 Capital Expenditures:
Capital expenditures for newly acquired space, newly developed, and redeveloped space, or a significant change in use or repositioning of space that result in additional revenue generated when the space is re-leased. These costs are not subtracted in our calculation of FAD.
Fixed Charge Coverage Ratio - EBITDA:
Calculated as EBITDA, as adjusted, divided by gross interest expense (excluding amortization of deferred debt costs and debt discounts/premiums) and current year accrued preferred dividends.
Fixed Charge Coverage Ratio - Net Income:
Calculated as net income, divided by gross interest expense (excluding amortization of deferred debt 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.


35

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Definitions Included in Supplemental, continued

GAAP Effective Rate:
The rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of any discounts/premiums, excluding debt issuance costs.
Interest Coverage Ratio:
Calculated as EBITDA, as adjusted, divided by gross interest expense (excluding amortization of deferred debt costs and debt discounts/premiums).
Net Effect of Straight-Line Rents:
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.
Net Income Payout Ratio:
Calculated as current-quarter dividends accrued to common stockholders and common unitholders (excluding dividend equivalents accrued to restricted stock unitholders) divided by net income.
Net Operating Income Margins:
Calculated as net operating income divided by total revenues.
Retention Rates (Leases Executed):
Calculated as the percentage of space either renewed or expanded into by existing tenants or subtenants at lease expiration.
Same Store Portfolio:
Our Same Store Portfolio includes all of our properties owned and included in our stabilized portfolio for two comparable reporting periods, i.e., owned and included in our stabilized portfolio as of January 1, 2022 and still owned and included in the stabilized portfolio as of June 30, 2023. It does not include undeveloped land, development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, completed residential developments not yet stabilized and properties held-for-sale. We define redevelopment properties as those projects for which we expect to spend significant development and construction costs on existing or acquired buildings pursuant to a formal plan, the intended result of which is a higher economic return on the property.
Second Generation Capital Expenditures:
Second generation leasing includes space in the stabilized portfolio where we have made capital expenditures to maintain the current market revenue stream; generally recurring in nature or related to space previously occupied.
Stated Interest Rate:
The rate at which interest expense is recorded per the respective loan documents, excluding the impact of the amortization of any debt discounts/premiums.
Tenant Improvement Phase:
Represents projects that have reached cold shell condition and are ready for tenant improvements, which may require additional major base building construction before being placed in service.

36

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Reconciliation of Net Income Available to Common Stockholders to Same Store Net Operating Income
(unaudited, $ in thousands)
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Net Income Available to Common Stockholders$55,587 $47,105 $112,195 $100,233 
Net income attributable to noncontrolling common units of the Operating Partnership537 515 1,097 1,031 
Net income attributable to noncontrolling interests in consolidated property partnerships5,151 6,355 13,213 12,094 
Net Income61,275 53,975 126,505 113,358 
Adjustments:
General and administrative expenses22,659 22,120 46,595 44,901 
Leasing costs1,326 1,447 2,698 2,460 
Depreciation and amortization90,362 96,415 184,038 185,075 
Interest income and other income, net(3,421)(125)(4,881)(206)
Interest expense26,383 20,121 52,054 40,746 
Net Operating Income, as defined (1)
198,584 193,953 407,009 386,334 
Wholly-Owned Properties176,582 168,721 356,102 337,172 
Consolidated property partnerships: (2)
100 First Street (3)
6,075 5,745 12,077 11,657 
303 Second Street (3)
9,706 13,333 26,942 25,323 
Crossing/900 (4)
6,221 6,154 11,888 12,182 
Net Operating Income, as defined (1)
198,584 193,953 407,009 386,334 
Non-Same Store Net Operating Income (5)
(21,127)(12,239)(41,037)(22,677)
Same Store Net Operating Income177,457 181,714 365,972 363,657 
GAAP to Cash Adjustments:
GAAP Operating Revenues Adjustments, net (6)
(9,981)(18,713)(12,260)(40,580)
GAAP Operating Expenses Adjustments, net100 110 202 221 
Same Store Cash Net Operating Income$167,576 $163,111 $353,914 $323,298 
   
________________________
(1)Please refer to pages 31-32 for Management Statements on Net Operating Income, Same Store Net Operating Income and Same Store Cash Net Operating Income.
(2)Reflects Net Operating Income for all periods presented.
(3)For all periods presented, an unrelated third party entity owned approximately 44% common equity interests in two properties located at 100 First Street and 303 Second Street in San Francisco, CA.
(4)For all periods presented, an unrelated third party entity owned an approximate 7% common equity interest in two properties located at 900 Jefferson Avenue and 900 Middlefield Road in Redwood City, CA.
(5)Includes the results of one office operating property disposed of in the third quarter of 2022, one office development building added to the stabilized portfolio during the second quarter of 2022, one office development building and two life science redevelopment buildings added to the stabilized portfolio during the third quarter of 2022, and our in-process and future development projects.
(6)Includes the net effect of straight-line rents, amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above and below market lease intangibles and revenue reversals (recoveries) related to tenant creditworthiness.
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Q2 2023 Supplemental Financial Report
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Reconciliation of Net Income Available to Common Stockholders to EBITDA, as Adjusted
(unaudited, $ in thousands)
 Three Months Ended June 30,
 20232022
Net Income Available to Common Stockholders$55,587 $47,105 
Interest expense26,383 20,121 
Depreciation and amortization90,362 96,415 
Net income attributable to noncontrolling common units of the Operating Partnership537 515 
Net income attributable to noncontrolling interests in consolidated property partnerships5,151 6,355 
EBITDA, as adjusted (1)
$178,020 $170,511 
________________________
(1)Please refer to page 32 for a Management Statement on EBITDA, as adjusted. The Company’s calculation of EBITDA, as adjusted, is the same as EBITDAre, as defined by Nareit, as the Company does not have any unconsolidated joint ventures.

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