Exhibit 99.2

Contact: Richard E. Moran Jr. Executive Vice President and Chief Financial Officer (310) 481-8483 or Tyler H. Rose Senior Vice President and Treasurer (310) 481-8484 FOR RELEASE: July 26, 2004

KILROY REALTY CORPORATION REPORTS

SECOND QUARTER FINANCIAL RESULTS

LOS ANGELES, July 26, 2004 – Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its second quarter ended June 30, 2004, with net income available for common shareholders of $7.9 million, or $0.28 per share, compared to $13.4 million, or $0.49 per share, in the second quarter of 2003. Revenues from continuing operations totaled $54.5 million, compared to $48.8 million in the year-earlier period. Funds from operations (FFO) in the second quarter totaled $23.4 million, or $0.72 per share, compared to $24.9 million, or $0.78 per share, in the second quarter of 2003.

For the first six months of 2004, KRC reported net income of $13.8 million, or $0.49 per share, compared to $24.3 million, or $0.88 per share, in the first half of 2003. Revenues from continuing operations in the six-month period totaled $109.0 million, up from $101.8 million in the same period of 2003.

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

“Leasing efforts at KRC have produced solid results and occupancy in our stabilized portfolio rose to 92% in the second quarter,” said John B. Kilroy, Jr., the company’s president and CEO. “With continued strong demand for high quality office properties in coastal San Diego, we’ve initiated development on the third phase of our Innovation Corporate Center.”

Innovation Corporate Center is located in the Rancho Bernardo area of San Diego County and is scheduled to be a four phase, 500,000 square foot complex upon

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completion. The third phase includes two buildings that commenced construction in early July of this year, which total approximately 103,000 square feet of space and represent an estimated total investment of approximately $23 million.

Other active projects in the company’s committed development and redevelopment programs include two buildings in lease-up totaling approximately 277,000 square feet and one building undergoing redevelopment totaling approximately 242,000 square feet. KRC’s committed pipeline, including its two new development projects, represents a total estimated investment of approximately $170 million, of which $125 million has been spent to date.

Earnings guidance for 2004 will be discussed by KRC management during the company’s July 27, 2004 earnings conference call. The call will begin at 11:00 a.m. PDT and last approximately one hour. Those interested in listening via the Internet can access the conference call at www.kilroyrealty.com. Please go to the website 15 minutes before the call and register. It may be necessary to download audio software to hear the conference call. Those interested in listening via telephone can access the conference call at (800) 915-4836. A replay of the conference call will be available via phone through August 3, 2004 at (800) 428-6051, reservation #356067 or via the Internet at the company’s website.

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

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

Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of California and Washington. KRC is currently active in office development and redevelopment in Los Angeles and San Diego counties. At June 30, 2004, the company owned 7.2 million square feet of commercial office space and 4.9 million square feet of industrial space. More information is available at www.kilroyrealty.com.

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KILROY REALTY CORPORATION

SUMMARY QUARTERLY RESULTS

(unaudited, in thousands, except per share data)

	Three Months Ended June 30, 2004		Three Months Ended June 30, 2003		Six Months Ended June 30, 2004			Six Months Ended June 30, 2003
Revenues from continuing operations	$	54,475	$	48,754	$	109,049		$	101,776
Revenues including discontinued operations	$	54,925	$	50,440	$	110,347		$	105,454
Net income available to common stockholders (1)	$	7,854	$	13,360	$	13,838		$	24,286
Weighted average common shares outstanding - basic		28,220		27,351		28,168			27,287
Weighted average common shares outstanding - diluted		28,362		27,545		28,333			27,488
Net income per share of common stock - basic	$	0.28	$	0.49	$	0.49		$	0.89
Net income per share of common stock - diluted	$	0.28	$	0.49	$	0.49		$	0.88
Funds From Operations (2) (3)	$	23,385	$	24,893	$	44,341		$	51,210
Weighted average common shares/units outstanding - basic (4)		32,316		31,572		32,292			31,513
Weighted average common shares/units outstanding - diluted (4)		32,457		31,766		32,456			31,714
Funds From Operations per common share/unit - basic (4)	$	0.72	$	0.79	$	1.37		$	1.63
Funds From Operations per common share/unit - diluted (4)	$	0.72	$	0.78	$	1.37		$	1.61
Common shares outstanding at end of period						28,398			27,565
Common partnership units outstanding at end of period						4,082			4,219
Total common shares and units outstanding at end of period						32,480			31,784
					June 30, 2004			June 30, 2003
Stabilized portfolio occupancy rates:
Los Angeles						82.9	%		81.4	%
Orange County						96.5	%		97.9	%
San Diego						94.4	%		89.4	%
Other						93.1	%		96.4	%
Weighted average total						92.0	%		90.9	%
Total square feet of stabilized properties owned at end of period:
Office						7,184			6,943
Industrial						4,879			4,877
Total						12,063			11,820

⁽¹⁾ Net income after minority interests.

⁽²⁾ Reconciliation of Net Income to Funds From Operations and management statement on Funds From Operations is included after the Consolidated Statements of Operations.

⁽³⁾ Reported amounts are attributable to common shareholders and common unitholders.

⁽⁴⁾ Calculated based on weighted average shares outstanding assuming conversion of all common limited partnership units outstanding.

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KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

	June 30, 2004			December 31, 2003
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	289,258		$	289,730
Buildings and improvements, net		1,306,576			1,305,145
Undeveloped land and construction in progress, net		128,160			131,411
Total real estate held for investment		1,723,994			1,726,286
Accumulated depreciation and amortization		(341,874	)		(321,372	)
Total real estate assets, net		1,382,120			1,404,914
Cash and cash equivalents		7,444			9,892
Restricted cash		7,352			8,558
Current receivables, net		4,043			4,919
Deferred rent receivables, net		41,134			36,804
Deferred leasing costs, net		37,824			36,651
Deferred financing costs, net		2,889			3,657
Prepaid expenses and other assets		6,672			7,240
TOTAL ASSETS	$	1,489,478		$	1,512,635
LIABILITIES & STOCKHOLDERS’ EQUITY
LIABILITIES:
Secured debt	$	614,806		$	526,048
Unsecured line of credit		140,000			235,000
Accounts payable, accrued expenses and other liabilities		35,976			41,147
Accrued distributions		16,478			16,369
Rents received in advance, tenant security deposits and deferred revenue		20,361			20,904
Total liabilities		827,621			839,468
MINORITY INTERESTS:
7.450% Series A Cumulative Redeemable Preferred unitholders (1)		73,638			73,716
9.250% Series D Cumulative Redeemable Preferred unitholders		44,321			44,321
Common unitholders of the Operating Partnership		63,640			66,502
Total minority interests		181,599			184,539
STOCKHOLDERS’ EQUITY:
7.800% Series E Cumulative Redeemable Preferred stock		38,425			38,437
Common stock		284			282
Additional paid-in capital		512,994			508,568
Deferred compensation		(2,445	)		(852	)
Distributions in excess of earnings		(67,689	)		(53,449	)
Accumulated net other comprehensive loss		(1,311	)		(4,358	)
Total stockholders’ equity		480,258			488,628
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,489,478		$	1,512,635

(1) On March 5, 2004, the Company amended the terms of its Series A Cumulative Redeemable Preferred Units (“Series A Preferred Units”) to reduce the distribution rate and extend the redemption date to September 30, 2009. Commencing March 5, 2004, distributions on the Series A Preferred Units accrued at an annual rate of 7.45%. Prior to March 5, 2004, distributions on the Series A Preferred Units accrued at an annual rate of 8.075%.

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KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended June 30, 2004			Three Months Ended June 30, 2003			Six Months Ended June 30, 2004			Six Months Ended June 30, 2003
REVENUES:
Rental income	$	49,151		$	43,486		$	97,226		$	86,403
Tenant reimbursements		5,196			4,923			10,675			10,502
Other property income		128			345			1,148			4,871
Total revenues		54,475			48,754			109,049			101,776
EXPENSES:
Property expenses		8,866			7,431			18,022			15,836
Real estate taxes		4,247			3,598			8,262			7,382
Provision for bad debts		395			(1,505	)		653			(1,084	)
Ground leases		332			324			662			644
General and administrative expenses		5,026			4,011			12,275			7,869
Interest expense		9,148			7,585			18,358			15,274
Depreciation and amortization		14,558			12,993			28,601			26,501
Total expenses		42,572			34,437			86,833			72,422
OTHER INCOME:
Interest and other income		78			48			385			94
Total other income		78			48			385			94
Income from continuing operations before minority interests		11,981			14,365			22,601			29,448
Minority interests:
Distributions on Cumulative Redeemable Preferred units		(2,437	)		(3,375	)		(4,958	)		(6,750	)
Minority interest in earnings of Operating Partnership attributable to continuing operations		(1,108	)		(1,465	)		(2,138	)		(3,030	)
Total minority interests		(3,545	)		(4,840	)		(7,096	)		(9,780	)
Income from continuing operations		8,436			9,525			15,505			19,668
Discontinued operations:
Revenues from discontinued operations		450			1,686			1,298			3,678
Expenses from discontinued operations		(153	)		(950	)		(619	)		(2,038	)
Impairment loss on property held for sale								(726	)
Net (loss) gain on disposition of discontinued operations		(64	)		3,690			(64	)		3,690
Minority interest in earnings of Operating Partnership attributable to discontinued operations		(30	)		(591	)		14			(712	)
Total income (loss) from discontinued operations		203			3,835			(97	)		4,618
Net income		8,639			13,360			15,408			24,286
Preferred dividends		(785	)					(1,570	)
Net income available for common shareholders	$	7,854		$	13,360		$	13,838		$	24,286
Weighted average shares outstanding - basic		28,220			27,351			28,168			27,287
Weighted average shares outstanding - diluted		28,362			27,545			28,333			27,488
Net Income per common share - basic	$	0.28		$	0.49		$	0.49		$	0.89
Net Income per common share - diluted	$	0.28		$	0.49		$	0.49		$	0.88

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KILROY REALTY CORPORATION FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended June 30, 2004		Three Months Ended June 30, 2003			Six Months Ended June 30, 2004		Six Months Ended June 30, 2003
Net income available for common shareholders	$	7,854	$	13,360		$	13,838	$	24,286
Adjustments:
Minority interest in earnings of Operating Partnership		1,138		2,056			2,124		3,742
Depreciation and amortization		14,329		13,167			28,315		26,872
Net loss (gain) on dispositions of operating properties		64		(3,690	)		64		(3,690	)
Funds From Operations (1) (2)	$	23,385	$	24,893		$	44,341	$	51,210
Weighted average common shares/units outstanding - basic		32,316		31,572			32,292		31,513
Weighted average common shares/units outstanding - diluted		32,457		31,766			32,456		31,714
Funds From Operations per common share/unit - basic	$	0.72	$	0.79		$	1.37	$	1.63
Funds From Operations per common share/unit - diluted	$	0.72	$	0.78		$	1.37	$	1.61

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

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

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

⁽²⁾ Reported amounts are attributable to common shareholders and common unitholders.

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