Exhibit 99.1

Second Quarter 2005 Supplemental Financial Report

Some of the enclosed information presented in this supplemental and on the Company’s July 26, 2005 conference call is forward-looking in nature, including information concerning project development timing and investment amounts. Although the information is based on Kilroy Realty Corporation’s current expectations, actual results could vary from expectations stated here. Numerous factors will affect Kilroy Realty Corporation’s actual results, some of which are beyond its control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels and capital market conditions. You are cautioned not to place undue reliance on this information, which speaks only as of the date of this report. Kilroy Realty Corporation assumes no obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under Federal securities laws to disclose material information. For a discussion of important risks related to Kilroy Realty Corporation’s business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information, see the discussion under the caption “Business Risks” in Kilroy Realty Corporation’s annual report on Form 10-K for the year ended December 31, 2004. In light of these risks, uncertainties and assumptions, the forward-looking events contained in this supplemental information and on the Company’s July 26, 2005 conference call might not occur.

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Table of Contents

	Page
Corporate Data and Financial Highlights
Company Background	1
Financial Highlights	2
Common Stock Data	3
Consolidated Balance Sheets	4
Consolidated Statements of Operations	5
Funds From Operations and Funds Available for Distribution	6
Portfolio Data
Same Store Analysis	7
Stabilized Portfolio Occupancy Overview	8-11
Leasing Activity	12
Stabilized Portfolio Capital Expenditures	13
Lease Expiration Summary and Lease Expirations by Region	14-17
Top Ten Office and Top Ten Industrial Tenants	18
Summary of Tenants Representing 5.0% or Greater of Annual Base Rental Revenue	19
Acquisitions	20
Dispositions and Properties Held for Sale	21
Development
Stabilized Development Projects	22
In-Process and Committed Development and Redevelopment Projects	23
Future Development Pipeline	24
Debt and Capitalization Data
Capital Structure	25
Debt Analysis	26-27
Non-GAAP Supplemental Measures	28-32

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Company Background

Kilroy Realty Corporation (NYSE: KRC) owns, develops, and operates office and industrial real estate, primarily in Southern California. The Company operates as a self-administered real estate investment trust. As of June 30, 2005, the Company’s stabilized portfolio consisted of 83 office buildings and 47 industrial buildings, which encompassed an aggregate of 7.6 million and 4.4 million square feet, respectively, and was 95.2% occupied.

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

Equity Research Coverage

A.G. Edwards & Sons, Inc.		Merrill Lynch & Co., Inc.
David AuBuchon	(314) 955-5452	Steve Sakwa	(212) 449-0335
Bank of America Securities		Prudential Securities
Ross Nussbaum	(212) 847-5668	Jim Sullivan	(212) 778-2515
Deutsche Bank Securities, Inc.		RBC Capital Markets
Lou Taylor	(212) 250-4912	Jay Leupp	(415) 633-8588
Green Street Advisors		Wells Fargo Securities
Jim Sullivan	(949) 640-8780	Christopher Hartung	(415) 675-2759
KeyBanc Capital Markets
Richard C. Moore II, CFA	(216) 443-2815

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.

1

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Financial Highlights

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

	Three Months Ended
	6/30/2005			3/31/2005			12/31/2004			9/30/2004			6/30/2004
INCOME ITEMS (Including Discontinued Operations):
Revenues	$	60,054		$	60,316		$	58,027		$	55,412		$	54,921
Net Straight Line Rent (1)		2,554			3,767			2,865			3,004			2,199
Lease Termination Fees		327			108			772			(310	)		95
Net Operating Income (2), (3)		44,747			44,612			43,530			42,495			41,156
Capitalized Interest and Loan Fees		2,182			2,069			2,180			2,260			2,061
Net (Loss) Income Available to Common Shareholders		(1,466	)		12,743			2,191			10,357			7,854
EBITDA (3), (4)		28,011			38,645			30,710			33,173			35,984
Funds From Operations (3), (5), (6)		14,427			25,004			17,360			20,185			23,385
Funds Available for Distribution (3), (5), (6), (7)		8,821			17,048			6,574			14,502			17,118
Net (Loss) Income per common share – diluted	$	(0.05	)	$	0.44		$	0.08		$	0.36		$	0.28
Funds From Operations per common share – diluted	$	0.44		$	0.77		$	0.53		$	0.62		$	0.72
Dividend per share	$	0.510		$	0.510		$	0.495		$	0.495		$	0.495
RATIOS (Including Discontinued Operations):
Operating Margins		74.5	%		74.0	%		75.0	%		76.7	%		74.9	%
Interest Coverage Ratio (8)		2.9x			4.0x			3.2x			3.5x			3.9x
Fixed Charge Coverage Ratio (9)		2.1x			2.9x			2.3x			2.6x			2.9x
FFO Payout Ratio (10)		115.3	%		66.5	%		92.8	%		79.7	%		68.8	%
FAD Payout Ratio (11)		188.6	%		97.6	%		245.0	%		110.9	%		93.9	%
	6/30/2005			3/31/2005			12/31/2004			9/30/2004			6/30/2004
ASSETS:
Real Estate Held for Investment before Depreciation	$	1,860,917		$	1,826,866		$	1,846,496		$	1,730,705		$	1,723,994
Total Assets		1,606,592			1,580,606			1,599,655			1,479,379			1,490,135
CAPITALIZATION:
Total Debt	$	818,417		$	783,563		$	801,441		$	730,932		$	754,806
Total Preferred Equity (12)		201,500			201,500			201,500			160,250			160,250
Total Market Equity Value (12)		1,548,973			1,334,255			1,390,989			1,236,675			1,107,544
Total Market Capitalization (12)		2,568,890			2,319,318			2,393,930			2,127,857			2,022,600
Total Debt / Total Market Capitalization		31.9	%		33.8	%		33.5	%		34.4	%		37.3	%
Total Debt and Preferred / Total Market Capitalization		39.7	%		42.4	%		41.9	%		41.9	%		45.2	%

(1) Represents the straight-line rent recognized during the period offset by cash received during the period that was applied to deferred rents receivable balances for terminated leases.

(2) Net Operating Income is defined as operating revenues (rental income, tenant reimbursements and other property income) less property and related expenses (property expenses, real estate taxes, provision for bad debts and ground leases) and excludes interest income and expense, depreciation and amortization, and corporate general and administrative expenses.

(3) Please refer to pages 28 and 29 for Management Statements on Net Operating Income, EBITDA before minority interests, Funds From Operations and Funds Available for Distribution.

(4) EBITDA is reported before minority interests and net gain (loss) on dispositions. Please refer to page 31 for a reconciliation of GAAP net income to EBITDA before minority interests.

(5) Please refer to page 6 for a reconciliation of GAAP Net Income to Funds From Operations and Funds Available for Distribution.

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

(7) Please refer to page 32 for Reconciliation of Funds Available for Distribution to GAAP Net Cash Provided by Operating Activities.

(8) Calculated as EBITDA before minority interests divided by total interest expense, including discontinued operations.

(9) Calculated as EBITDA before minority interests divided by total interest expense, including discontinued operations, current year accrued preferred dividends and distributions on Cumulative Redeemable Preferred units.

(10) Calculated as current-quarter dividends accrued to common shareholders and common unitholders divided by Funds From Operations.

(11) Calculated as current-quarter dividends accrued to common shareholders and common unitholders divided by Funds Available for Distribution.

(12) See “Capital Structure” on page 25.

2

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Common Stock Data (NYSE: KRC)

	Three Months Ended
	6/30/2005		3/31/2005		12/31/2004		9/30/2004		6/30/2004
High Price	$	48.37	$	43.30	$	43.85	$	38.47	$	36.13
Low Price	$	40.66	$	38.95	$	38.42	$	34.08	$	30.62
Closing Price	$	47.49	$	40.91	$	42.75	$	38.03	$	34.10
Dividend per share - annualized	$	2.04	$	2.04	$	1.98	$	1.98	$	1.98
Closing common shares (in 000’s)(1)		28,900		28,895		28,549		28,528		28,398
Closing partnership units (in 000’s)(1)		3,717		3,720		3,989		3,990		4,082
		32,617		32,615		32,538		32,518		32,480

(1) As of the end of the period.

3

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Consolidated Balance Sheets

(unaudited, $ in thousands)

	6/30/2005			3/31/2005			12/31/2004			9/30/2004			6/30/2004
ASSETS:
Land and improvements	$	296,412		$	295,409		$	304,033		$	288,861		$	289,258
Buildings and improvements, net		1,431,039			1,428,069			1,445,918			1,357,626			1,306,576
Undeveloped land and construction in progress		133,466			103,388			96,545			84,218			128,160
Total real estate held for investment		1,860,917			1,826,866			1,846,496			1,730,705			1,723,994
Accumulated depreciation and amortization		(382,687	)		(373,514	)		(365,831	)		(353,025	)		(341,874	)
Investment in real estate, net		1,478,230			1,453,352			1,480,665			1,377,680			1,382,120
Property held for sale, net (1)		3,693			—			—			—			—
Total real estate assets, net		1,481,923			1,453,352			1,480,665			1,377,680			1,382,120
Cash and cash equivalents		7,706			11,040			4,853			3,652			7,444
Restricted cash		728			2			332			1,283			7,352
Current receivables, net		3,624			3,177			4,843			4,190			4,700
Deferred rent receivables, net		51,568			49,015			46,816			43,956			41,134
Deferred leasing costs and other related intangibles, net		49,073			49,586			51,251			39,420			37,824
Deferred financing costs, net		5,724			6,102			5,849			3,190			2,889
Prepaid expenses and other assets		6,246			8,332			5,046			6,008			6,672
TOTAL ASSETS		1,606,592			1,580,606			1,599,655			1,479,379			1,490,135
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Liabilities:
Secured debt	$	490,417		$	486,563		$	490,441		$	494,932		$	614,806
Unsecured senior notes		144,000			144,000			144,000			144,000			—
Unsecured line of credit		184,000			153,000			167,000			92,000			140,000
Accounts payable, accrued expenses and other liabilities		81,689			71,874			73,005			52,889			36,633
Accrued distributions		17,844			17,844			16,923			16,498			16,478
Rents received in advance, tenant security deposits and deferred revenue		20,734			21,404			21,605			19,974			20,361
Total liabilities		938,684			894,685			912,974			820,293			828,278
Minority Interests:
7.45% Series A Cumulative Redeemable Preferred unitholders		73,638			73,638			73,638			73,638			73,638
9.25% Series D Cumulative Redeemable Preferred unitholders(2)		—			—			—			44,321			44,321
Common unitholders of the Operating Partnership		53,934			56,039			60,351			61,782			63,640
Total minority interests		127,572			129,677			133,989			179,741			181,599
Stockholders’ Equity:
7.80% Series E Cumulative Redeemable Preferred stock		38,425			38,425			38,425			38,425			38,425
7.50% Series F Cumulative Redeemable Preferred stock(2)		83,157			83,157			83,157			—			—
Common stock		289			290			286			286			284
Additional paid-in capital		522,321			522,233			515,285			515,086			512,994
Deferred compensation		(3,069	)		(3,558	)		(1,412	)		(1,929	)		(2,445	)
Distributions in excess of earnings		(101,591	)		(85,387	)		(83,394	)		(71,456	)		(67,689	)
Accumulated net other comprehensive income (loss)		804			1,084			345			(1,067	)		(1,311	)
Total stockholders’ equity		540,336			556,244			552,692			479,345			480,258
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,606,592		$	1,580,606		$	1,599,655		$	1,479,379		$	1,490,135

(1) The Company classified its industrial property located at 2260 E. El Segundo Blvd., El Segundo, CA as held for sale as of June 30, 2005 for financial reporting purposes in accordance with SFAS 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”. The Company sold the property on July 22, 2005 for $22.5 million. The Company will record a gain on the sale. The property, which encompasses 113,820 square feet, was not occupied as of June 30, 2005.

(2) In December 2004, the Company redeemed all of its outstanding 9.25% Series D Cumulative Redeemable Preferred units with the net proceeds from its 7.50% Series F Cumulative Redeemable Preferred stock offering.

4

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Consolidated Statements of Operations

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

	Three Months Ended June 30,								Six Months Ended June 30,
	2005			2004			% Change		2005			2004			% Change
REVENUES:
Rental income	$	53,461		$	47,925		11.6	%	$	106,729		$	94,835		12.5	%
Tenant reimbursements		6,169			5,062		21.9	%		11,920			10,386		14.8	%
Other property income		403			128		214.8	%		623			664		(6.2	%)
Total revenues		60,033			53,115		13.0	%		119,272			105,885		12.6	%
EXPENSES:
Property expenses		10,061			8,369		20.2	%		19,463			16,797		15.9	%
Real estate taxes		4,462			4,092		9.0	%		8,859			7,954		11.4	%
Provision for bad debts		272			385		(29.4	%)		1,405			610		130.3	%
Ground leases		443			332		33.4	%		848			662		28.1	%
General and administrative expenses		16,790			5,250		219.8	%		22,814			12,943		76.3	%
Interest expense		9,568			9,148		4.6	%		19,190			18,358		4.5	%
Depreciation and amortization		16,294			14,140		15.2	%		32,490			27,791		16.9	%
Total expenses		57,890			41,716		38.8	%		105,069			85,115		23.4	%
OTHER INCOME:
Interest and other income		54			78		(30.8	%)		111			385		(71.2	%)
Total other income		54			78		(30.8	%)		111			385		(71.2	%)
INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTERESTS		2,197			11,477		(80.9	%)		14,314			21,155		(32.3	%)
MINORITY INTERESTS:
Distributions on Cumulative Redeemable Preferred units		(1,397	)		(2,437	)	(42.7	%)		(2,794	)		(4,958	)	(43.6	%)
Minority interest in loss (earnings) of Operating Partnership attributable to continuing operations		206			(1,045	)	(119.7	%)		(782	)		(1,954	)	(60.0	%)
Total minority interests		(1,191	)		(3,482	)	(65.8	%)		(3,576	)		(6,912	)	(48.3	%)
INCOME FROM CONTINUING OPERATIONS		1,006			7,995		(87.4	%)		10,738			14,243		(24.6	%)
DISCONTINUED OPERATIONS:
Revenues from discontinued operations		21			1,806		(98.8	%)		1,100			4,462		(75.3	%)
Expenses from discontinued operations		(116	)		(1,005	)	(88.5	%)		(830	)		(2,337	)	(64.5	%)
Net (loss) gain on disposition of discontinued operations		—			(64	)	(100.0	%)		5,779			(64	)	(9129.7	%)
Impairment loss on property held for sale		—			—		0.0	%		—			(726	)	(100.0	%)
Minority interest attributable to discontinued operations		25			(93	)	(126.9	%)		(705	)		(170	)	314.7	%
Total (loss) income from discontinued operations		(70	)		644		(110.9	%)		5,344			1,165		358.7	%
NET INCOME		936			8,639		(89.2	%)		16,082			15,408		4.4	%
PREFERRED DIVIDENDS		(2,402	)		(785	)	206.0	%		(4,804	)		(1,570	)	206.0	%
NET (LOSS) INCOME AVAILABLE FOR COMMON SHAREHOLDERS	$	(1,466	)	$	7,854		(118.7	%)	$	11,278		$	13,838		(18.5	%)
Weighted average shares outstanding - basic		28,739			28,220		1.8	%		28,648			28,168		1.7	%
Weighted average shares outstanding - diluted		28,739			28,362		1.3	%		28,798			28,333		1.6	%
NET (LOSS) INCOME PER COMMON SHARE:
Net (loss) income per common share - basic	$	(0.05	)	$	0.28		(117.9	%)	$	0.39		$	0.49		(20.4	%)
Net (loss) income per common share - diluted	$	(0.05	)	$	0.28		(117.9	%)	$	0.39		$	0.49		(20.4	%)

5

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

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,
	2005			2004			% Change		2005			2004			% Change
FUNDS FROM OPERATIONS: (1)
Net (loss) income available to common shareholders	$	(1,466	)	$	7,854		(118.7	%)	$	11,278		$	13,838		(18.5	%)
Adjustments:
Minority interest in (loss) earnings of Operating Partnership		(231	)		1,138		(120.3	%)		1,487			2,124		(30.0	%)
Depreciation and amortization of real estate assets		16,124			14,329		12.5	%		32,446			28,315		14.6	%
Net loss (gain) on dispositions of operating properties		—			64		—			(5,779	)		64		—
Funds From Operations (2)	$	14,427		$	23,385		(38.3	%)	$	39,432		$	44,341		(11.1	%)
Weighted average common shares/units outstanding - basic		32,458			32,316		0.4	%		32,439			32,292		0.5	%
Weighted average common shares/units outstanding - diluted		32,594			32,457		0.4	%		32,589			32,456		0.4	%
FFO per common share/unit - basic	$	0.44		$	0.72		(38.9	%)	$	1.22		$	1.37		(10.9	%)
FFO per common share/unit - diluted	$	0.44		$	0.72		(38.9	%)	$	1.21		$	1.37		(11.7	%)
FUNDS AVAILABLE FOR DISTRIBUTION: (1)
Funds From Operations	$	14,427		$	23,385		(38.3	%)	$	39,432		$	44,341		(11.1	%)
Adjustments:
Amortization of deferred financing costs		366			748		(51.1	%)		778			1,557		(50.0	%)
Non-cash amortization of restricted stock grants		950			834		13.9	%		1,827			1,733		5.4	%
Amortization of (below) above market rents(3)		(303	)		(6	)	100.0	%		(606	)		(12	)	100.0	%
Impairment loss on property held for sale													726
Tenant improvements, leasing commissions and recurring capital expenditures		(4,065	)		(5,644	)	(28.0	%)		(9,240	)		(9,382	)	(1.5	%)
Net effect of straight-line rents (4)		(2,554	)		(2,199	)	16.1	%		(6,321	)		(4,683	)	35.0	%
Funds Available for Distribution (2)	$	8,821		$	17,118		(48.5	%)	$	25,870		$	34,280		(24.5	%)

(1) See page 29 for Management Statements on Funds From Operations and Funds Available for Distribution.

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

(3) Represents the SFAS 141 adjustment related to the acquisition of buildings with above/below market rents.

(4) 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.

6

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Same Store Analysis ⁽¹⁾

(unaudited, $ in thousands)

Same Store Analysis (GAAP Basis)

	Three Months Ended June 30,								Six Months Ended June 30,
	2005			2004			% Change		2005			2004			% Change
Total Same Store Portfolio
Number of properties		124			124					124			124
Square Feet		11,248,879			11,248,879					11,248,879			11,248,879
Percent of Stabilized Portfolio		94.0	%		93.3	%				94.0	%		93.3	%
Average Occupancy		94.9	%		92.1	%				94.8	%		91.5	%
Operating Revenues:
Rental income	$	47,283		$	45,421		4.1	%	$	94,443		$	89,762		5.2	%
Tenant reimbursements		5,580			5,043		10.6	%		11,037			10,361		6.5	%
Other income		404			120		236.7	%		621			640		(3.0	%)
Total operating revenues		53,267			50,584		5.3	%		106,101			100,763		5.3	%
Operating Expenses:
Property expenses		9,215			7,967		15.7	%		17,767			16,004		11.0	%
Real estate taxes		3,886			3,886		0.0	%		7,744			7,559		2.4	%
Provision for bad debts		120			330		(63.6	%)		1,075			501		114.6	%
Ground leases		442			332		33.1	%		848			662		28.1	%
Total operating expenses		13,663			12,515		9.2	%		27,434			24,726		11.0	%
GAAP Net Operating Income	$	39,604		$	38,069		4.0	%	$	78,667		$	76,037		3.5	%

Same Store Analysis (Cash Basis)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005		2004		% Change		2005		2004		% Change
Total operating revenues		51,611		48,470	6.5	%		102,175		96,558	5.8	%
Total operating expenses		13,663		12,515	9.2	%		27,434		24,726	11.0	%
Cash Net Operating Income	$	37,948	$	35,955	5.5	%	$	74,741	$	71,832	4.0	%

(1) Same store defined as all stabilized properties owned at January 1, 2004 and still owned and in the stabilized portfolio at June 30, 2005.

7

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Stabilized Portfolio Occupancy Overview

	# of Buildings	Portfolio Breakdown				Total Square Feet	Occupancy at: (1)
		NOI		Sq. Ft.			6/30/2005		3/31/2005		12/31/2004
STABILIZED PORTFOLIO:
OCCUPANCY BY PRODUCT TYPE:
Office:
Los Angeles	25	30.2	%	23.7	%	2,820,099	94.4	%	94.0	%	91.1	%
Orange County	6	2.0	%	2.5	%	304,961	88.0	%	96.9	%	97.4	%
San Diego	44	45.2	%	30.1	%	3,603,207	94.3	%	94.3	%	97.1	%
Other	8	5.3	%	7.3	%	878,960	91.7	%	92.3	%	89.7	%
Subtotal	83	82.7	%	63.6	%	7,607,227	93.8	%	94.1	%	94.0	%
Industrial:
Los Angeles	3	1.3	%	2.3	%	274,985	72.2	%	51.0	%	53.0	%
Orange County	43	15.3	%	32.7	%	3,918,383	99.4	%	98.3	%	99.4	%
Other	1	0.7	%	1.4	%	164,540	100.0	%	100.0	%	100.0	%
Subtotal	47	17.3	%	36.4	%	4,357,908	97.7	%	94.3	%	95.5	%
OCCUPANCY BY REGION:
Los Angeles	28	31.5	%	26.0	%	3,095,084	92.4	%	88.8	%	86.5	%
Orange County	49	17.3	%	35.2	%	4,223,344	98.5	%	98.3	%	99.2	%
San Diego	44	45.2	%	30.1	%	3,603,207	94.3	%	94.3	%	97.1	%
Other	9	6.0	%	8.7	%	1,043,500	93.0	%	93.5	%	92.3	%
TOTAL STABILIZED PORTFOLIO	130	100.0	%	100.0	%	11,965,135	95.2	%	94.1	%	94.6	%

AVERAGE OCCUPANCY - STABILIZED PORTFOLIO

	Office		Industrial		Total
Quarter-to-Date	93.6	%	95.7	%	94.4	%
Year-to-Date	93.9	%	95.2	%	94.4	%

(1) Occupancy percentages reported are based on the Company’s stabilized portfolio for the period presented.

8

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Stabilized Portfolio Occupancy Overview

	City/ Submarket	# of Buildings	Square Feet	Occupancy
Office:
Los Angeles, California
23925 Park Sorrento	Calabasas	1	11,789	100.0	%
23975 Park Sorrento	Calabasas	1	100,592	100.0	%
24025 Park Sorrento	Calabasas	1	102,264	100.0	%
26541 Agoura Road	Calabasas	1	90,366	100.0	%
181/185 S. Douglas Street	El Segundo	1	61,604	47.0	%
Kilroy Airport Center, El Segundo	El Segundo	3	699,192	99.8	%
999 N. Sepulveda Blvd.	El Segundo	1	127,901	60.9	%
Kilroy Airport Center, Long Beach	Long Beach	7	949,063	94.3	%
12200 W. Olympic Blvd.	Los Angeles	1	151,019	92.9	%
12100 W. Olympic Blvd.	Los Angeles	1	150,167	95.8	%
12312 W. Olympic Blvd.	Los Angeles	1	78,000	100.0	%
1633 26th Street	Santa Monica	1	44,915	100.0	%
2100 Colorado Avenue	Santa Monica	3	94,844	100.0	%
3130 Wilshire Blvd.	Santa Monica	1	88,338	98.2	%
501 Santa Monica Blvd.	Santa Monica	1	70,045	96.9	%
Total Los Angeles Office		25	2,820,099	94.4	%
Orange County, California
4175 E. La Palma Avenue	Anaheim	1	43,263	89.1	%
8101 Kaiser Blvd.	Anaheim	1	60,177	100.0	%
Kilroy Center-Brea	Brea	2	106,791	100.0	%
9451 Toledo Way	Irvine	1	27,200	0.0	%
111 Pacifica	Irvine Spectrum	1	67,530	92.9	%
Total Orange County Office		6	304,961	88.0	%

9

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Stabilized Portfolio Occupancy Overview

	City/ Submarket	# of Buildings	Square Feet	Occupancy
Office:
San Diego, California
12340 El Camino Real	Del Mar	1	88,181	95.8	%
12348 High Bluff Drive	Del Mar	1	38,710	100.0	%
12390 El Camino Real	Del Mar	1	72,332	100.0	%
3579 Valley Center Drive	Del Mar	1	52,375	100.0	%
3611 Valley Center Drive	Del Mar	1	130,178	95.6	%
3661 Valley Center Drive	Del Mar	1	129,752	100.0	%
3721 Valley Center Drive	Del Mar	1	114,780	100.0	%
3811 Valley Center Drive	Del Mar	1	112,067	100.0	%
12225 / 12235 El Camino Real	Del Mar	2	115,513	100.0	%
12400 High Bluff Drive	Del Mar	1	208,464	100.0	%
6215 / 6220 Greenwich Drive	Governor Park	2	212,214	100.0	%
15051 Ave of Science	I-15 Corridor	1	70,617	100.0	%
15073 Ave of Science	I-15 Corridor	1	46,759	100.0	%
15378 Ave of Science	I-15 Corridor	1	68,910	100.0	%
15435 / 15445 Innovation Drive	I-15 Corridor	2	103,000	100.0	%
13500/13520 Evening Creek Drive North	I-15 Corridor	2	281,830	91.2	%
4939 / 4955 Directors Place	Sorrento Gateway	2	136,908	100.0	%
5005 / 5010 Wateridge Vista Drive	Sorrento Gateway	2	172,778	100.0	%
10421 Pacific Center Court	Sorrento Mesa	1	79,871	87.0	%
10243 Genetic Center	Sorrento Mesa	1	102,875	100.0	%
10390 Pacific Center Court	Sorrento Mesa	1	68,400	100.0	%
6055 Lusk Avenue	Sorrento Mesa	1	93,000	100.0	%
6260 Sequence Drive	Sorrento Mesa	1	130,000	100.0	%
6290 / 6310 Sequence Drive	Sorrento Mesa	2	152,415	100.0	%
6340 / 6350 Sequence Drive	Sorrento Mesa	2	199,000	66.6	%
Pacific Corporate Center	Sorrento Mesa	6	332,542	100.0	%
5717 Pacific Center	Sorrento Mesa	1	67,995	0.0	%
4690 Executive Drive	University Towne Center	1	50,546	50.4	%
9455 Towne Center Drive	University Towne Center	1	45,195	100.0	%
9785 / 9791 Towne Center Drive	University Towne Center	2	126,000	100.0	%
Total San Diego Office		44	3,603,207	94.3	%
Other
Kilroy Airport Center, Sea-Tac	Seattle, WA	3	532,430	93.4	%
5151/5155 Camino Ruiz	Carmarillo, CA	4	265,372	92.5	%
2829 Townsgate Road	Thousand Oaks, CA	1	81,158	77.9	%
Total Other Office		8	878,960	91.7	%
Total Office		83	7,607,227	93.8	%

10

Kilroy Realty Corporation

First Quarter 2005 Supplemental Financial Report

Stabilized Portfolio Occupancy Overview

	City/ Submarket	# of Buildings	Square Feet	Occupancy
Industrial:
Los Angeles, California
2031 E. Mariposa Avenue	El Segundo	1	192,053	100.0	%
2265 E. El Segundo Blvd.	El Segundo	1	76,570	0.0	%
2270 E. El Segundo Blvd.	El Segundo	1	6,362	100.0	%
Total Los Angeles Industrial		3	274,985	72.2	%
Orange County, California
1000 E. Ball Road	Anaheim	1	100,000	100.0	%
1230 S. Lewis Road	Anaheim	1	57,730	100.0	%
1250 N. Tustin Avenue	Anaheim	1	84,185	100.0	%
3125 E. Coronado Street	Anaheim	1	144,000	100.0	%
3130 - 3150 Miraloma	Anaheim	1	144,000	100.0	%
3250 E. Carpenter	Anaheim	1	41,225	100.0	%
3340 E. La Palma Avenue	Anaheim	1	153,320	100.0	%
5115 E. La Palma Avenue	Anaheim	1	286,139	100.0	%
5325 E. Hunter Avenue	Anaheim	1	110,487	100.0	%
Anaheim Tech Center	Anaheim	5	593,992	100.0	%
La Palma Business Center	Anaheim	2	145,481	82.8	%
Brea Industrial Complex	Brea	7	276,278	100.0	%
Brea Industrial-Lambert Road	Brea	2	178,811	100.0	%
1675 MacArthur	Costa Mesa	1	50,842	100.0	%
25202 Towne Center Drive	Foothill Ranch	1	303,533	100.0	%
12400 Industry Street	Garden Grove	1	64,200	100.0	%
12681 / 12691 Pala Drive	Garden Grove	1	84,700	100.0	%
7421 Orangewood Avenue	Garden Grove	1	82,602	100.0	%
Garden Grove Industrial Complex	Garden Grove	6	275,971	100.0	%
17150 Von Karman	Irvine	1	157,458	100.0	%
2055 S.E. Main Street	Irvine	1	47,583	100.0	%
9401 Toledo Way	Irvine	1	244,800	100.0	%
1951 E. Carnegie Avenue	Santa Ana	1	100,000	100.0	%
2525 Pullman	Santa Ana	1	103,380	100.0	%
14831 Franklin Avenue	Tustin	1	36,256	100.0	%
2911 Dow Avenue	Tustin	1	51,410	100.0	%
Total Orange County Industrial		43	3,918,383	99.4	%
Other
3735 Imperial Highway	Stockton, CA	1	164,540	100.0	%
Total Other Industrial		1	164,540	100.0	%
Total Industrial		47	4,357,908	97.7	%

11

Kilroy Realty Corporation

First Quarter 2005 Supplemental Financial Report

Leasing Activity

Quarter-to-Date

	1st & 2nd Generation				2nd Generation
	# of Leases(1)		Square Feet(1)		TI/LC Per Sq.Ft.		Maintenance Capex Per Sq.Ft.(2)		Changes in Rents(3)		Changes in Cash Rents(4)		Retention Rates(5)		Weighted Average Lease Term (Mo.)
	New	Renewal	New	Renewal
Office	12	6	62,531	45,277	$	28.16	$	0.07	(20.8	%)	(22.6	%)	74.3	%	81
Industrial	1	3	40,000	129,144		2.65		0.11	8.1	%	(4.7	%)	82.6	%	90
Total	13	9	102,531	174,421	$	12.48	$	0.08	(11.3	%)	(16.7	%)	78.8	%	86

Year-to-Date

	1st & 2nd Generation				2nd Generation
	# of Leases(1)		Square Feet(1)		TI/LC Per Sq.Ft.		Maintenance Capex Per Sq.Ft.(2)		Changes in Rents(3)		Changes in Cash Rents(4)		Retention Rates(5)		Weighted Average Lease Term (Mo.)
	New	Renewal	New	Renewal
Office	31	15	223,233	99,199	$	25.13	$	0.22	(8.0	%)	(14.1	%)	49.6	%	70
Industrial	2	7	84,000	300,948		4.64		0.13	10.4	%	(3.2	%)	73.0	%	80
Total	33	22	307,233	400,147	$	12.06	$	0.18	(1.3	%)	(10.1	%)	65.7	%	76

(1) Represents leasing activity for leases commencing during the period shown, net of month-to-month leases. Excludes leasing on new construction.

(2) Calculated over entire stabilized portfolio.

(3) Calculated as the change between GAAP rents for new/renewed leases and the expired GAAP rents for the same space. Excludes leases for which the space was vacant longer than one year.

(4) Calculated as the change between stated rents for new/renewed leases and the expired stated rents for the same space. Excludes leases for which the space was vacant longer than one year.

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

12

Kilroy Realty Corporation

First Quarter 2005 Supplemental Financial Report

Stabilized Portfolio Capital Expenditures

($ in thousands)

Non-Recurring Capital Expenditures:
	Q1 2005		Q2 2005		YTD 2005
Capital Improvements	$	—	$	—	$	—
Tenant Improvements & Leasing Commissions(1)		277		72		349
Total	$	277	$	72	$	349
Recurring Capital Expenditures:
	Q1 2005		Q2 2005		YTD 2005
Capital Improvements
Office	$	1,152	$	515	$	1,667
Industrial		106		501		607
		1,258		1,016		2,274
Tenant Improvements & Leasing Commissions (1)
Office		2,507		2,511		5,018
Industrial		1,410		538		1,948
		3,917		3,049		6,966
Total
Office		3,659		3,026		6,685
Industrial		1,516		1,039		2,555
	$	5,175	$	4,065	$	9,240

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

13

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Lease Expiration Summary Schedule

($ in thousands)

Year of Expiration	# of Expiring Leases	Total Square Feet(1)	% of Total Leased Sq. Ft.		Annual Base Rent (2)		Annual Rent per Sq. Ft.(2)
OFFICE:
Remaining 2005 (3)	27	264,700	3.8	%	$	4,303	$	16.26
2006	54	539,334	7.6	%		12,934		23.98
2007	69	1,259,178	17.8	%		23,406		18.59
2008	47	713,138	10.1	%		12,618		17.69
2009	69	1,243,733	17.6	%		29,562		23.77
2010	43	698,515	9.9	%		18,760		26.86
2011	20	425,373	6.0	%		7,203		16.93
2012	8	420,434	6.0	%		12,797		30.44
2013	5	162,064	2.3	%		4,902		30.25
2014 and beyond	28	1,332,152	18.9	%		47,855		35.92
Subtotal	370	7,058,621	100.0	%	$	174,340	$	24.70
INDUSTRIAL:
Remaining 2005 (3)	3	88,612	2.1	%	$	653	$	7.37
2006	11	305,665	7.2	%		2,870		9.39
2007	17	738,909	17.5	%		5,043		6.82
2008	10	877,551	20.8	%		6,125		6.98
2009	11	678,661	16.1	%		4,334		6.39
2010	7	415,788	9.8	%		3,974		9.56
2011	5	451,352	10.7	%		3,321		7.36
2012	3	184,659	4.4	%		1,062		5.75
2013	—	—	—			—		—
2014 and beyond	4	485,132	11.4	%		4,246		8.75
Subtotal	71	4,226,329	100.0	%	$	31,628	$	7.48
TOTAL PORTFOLIO:
Remaining 2005 (3)	30	353,312	3.1	%	$	4,956	$	14.03
2006	65	844,999	7.5	%		15,804		18.70
2007	86	1,998,087	17.7	%		28,449		14.24
2008	57	1,590,689	14.1	%		18,743		11.78
2009	80	1,922,394	17.0	%		33,896		17.63
2010	50	1,114,303	9.9	%		22,734		20.40
2011	25	876,725	7.8	%		10,524		12.00
2012	11	605,093	5.4	%		13,859		22.90
2013	5	162,064	1.4	%		4,902		30.25
2014 and beyond	32	1,817,284	16.1	%		52,101		28.67
Total	441	11,284,950	100.0	%	$	205,968	$	18.25

(1) Excludes space leased under month-to-month leases and vacant space at June 30, 2005.

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

(3) Represents leases expiring during the remainder of 2005 for which renewals have not been executed.

14

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Lease Expiration Schedule Detail by Region

($ in thousands)

	Los Angeles County								Orange County
Year of Expiration	# of Expiring Leases	Total Square Feet(1)	% of Total Regional Sq. Ft.		Annual Base Rent (2)		Annual Rent per Sq. Ft.(2)		# of Expiring Leases	Total Square Feet(1)	% of Total Regional Sq. Ft.		Annual Base Rent (2)		Annual Rent per Sq. Ft.(2)
OFFICE:
Remaining 2005 (3)	16	68,571	2.6	%	$	1,479	$	21.57	6	48,731	18.4	%	$	1,121	$	23.00
2006	34	249,615	9.6	%		7,471		29.93	6	29,782	11.3	%		697		23.40
2007	34	550,823	21.2	%		11,446		20.78	9	21,852	8.3	%		473		21.65
2008	22	137,154	5.3	%		3,479		25.37	7	72,191	27.3	%		1,040		14.41
2009	38	624,208	24.0	%		15,778		25.28	7	72,908	27.6	%		1,700		23.32
2010	27	309,511	11.9	%		8,368		27.04	2	5,447	2.1	%		128		23.50
2011	10	128,325	4.9	%		3,432		26.74	2	13,097	5.0	%		206		15.73
2012	4	240,051	9.2	%		6,848		28.53	—	—	—			—		—
2013	3	47,284	1.8	%		1,135		24.00	—	—	—			—		—
2014 and beyond	7	244,916	9.5	%		7,301		29.81	—	—	—			—		—
Subtotal	195	2,600,458	100.0	%	$	66,737	$	25.66	39	264,008	100.0	%	$	5,365	$	20.32
INDUSTRIAL:
Remaining 2005 (3)	—	—	—			—		—	3	88,612	2.3	%	$	653	$	7.37
2006	—	—	—			—		—	11	305,665	7.9	%		2,870		9.39
2007	—	—	—			—		—	17	738,909	19.1	%		5,043		6.82
2008	—	—	—			—		—	10	877,551	22.7	%		6,125		6.98
2009	1	6,362	3.2	%	$	101		15.88	10	672,299	17.4	%		4,233		6.30
2010	1	192,053	96.8	%		2,404		12.52	6	223,735	5.8	%		1,570		7.02
2011	—	—	—			—		—	4	286,812	7.4	%		2,137		7.45
2012	—	—	—			—		—	3	184,659	4.8	%		1,062		5.75
2013	—	—	—			—		—	—	—	—			—		—
2014 and beyond	—	—	—			—		—	4	485,132	12.6	%		4,246		8.75
Subtotal	2	198,415	100.0	%	$	2,505	$	12.63	68	3,863,374	100.0	%	$	27,939	$	7.23
TOTAL PORTFOLIO:
Remaining 2005 (3)	16	68,571	2.4	%	$	1,479	$	21.57	9	137,343	3.3	%	$	1,774	$	12.92
2006	34	249,615	8.9	%		7,471		29.93	17	335,447	8.1	%		3,567		10.63
2007	34	550,823	19.7	%		11,446		20.78	26	760,761	18.4	%		5,516		7.25
2008	22	137,154	4.9	%		3,479		25.37	17	949,742	23.0	%		7,165		7.54
2009	39	630,570	22.5	%		15,879		25.18	17	745,207	18.1	%		5,933		7.96
2010	28	501,564	17.9	%		10,772		21.48	8	229,182	5.6	%		1,698		7.41
2011	10	128,325	4.6	%		3,432		26.74	6	299,909	7.3	%		2,343		7.81
2012	4	240,051	8.6	%		6,848		28.53	3	184,659	4.5	%		1,062		5.75
2013	3	47,284	1.7	%		1,135		24.00	—	—	—			—		—
2014 and beyond	7	244,916	8.8	%		7,301		29.81	4	485,132	11.7	%		4,246		8.75
Total	197	2,798,873	100.0	%	$	69,242	$	24.74	107	4,127,382	100.0	%	$	33,304	$	8.07

⁽¹⁾ Excludes space leased under month-to-month leases and vacant space at June 30, 2005.

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

⁽³⁾ Represents leases expiring during the remainder of 2005 for which renewals have not been executed.

15

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Lease Expiration Schedule Detail by Region

($ in thousands)

	San Diego County								Other
Year of Expiration	# of Expiring Leases	Total Square Feet(1)	% of Total Regional Sq. Ft.		Annual Base Rent (2)		Annual Rent per Sq. Ft.(2)		# of Expiring Leases	Total Square Feet(1)	% of Total Regional Sq. Ft.		Annual Base Rent (2)		Annual Rent per Sq. Ft.(2)
OFFICE:
Remaining 2005 (3)	1	130,000	3.8	%	$	1,202	$	9.25	4	17,398	2.2	%	$	501	$	28.80
2006	6	210,200	6.2	%		3,877		18.44	8	49,737	6.2	%		889		17.87
2007	13	563,991	16.6	%		9,089		16.12	13	122,512	15.3	%		2,398		19.57
2008	9	258,836	7.6	%		5,383		20.80	9	244,957	30.5	%		2,716		11.09
2009	14	484,668	14.3	%		10,763		22.21	10	61,949	7.7	%		1,321		21.32
2010	9	334,545	9.9	%		9,127		27.28	5	49,012	6.1	%		1,137		23.20
2011	1	68,910	2.0	%		929		13.48	7	215,041	26.8	%		2,636		12.26
2012	4	180,383	5.3	%		5,949		32.98	—	—	—			—		—
2013	2	114,780	3.4	%		3,767		32.82	—	—	—			—		—
2014 and beyond	18	1,045,914	30.9	%		39,871		38.12	3	41,322	5.2	%		683		16.53
Subtotal	77	3,392,227	100.0	%	$	89,957	$	26.52	59	801,928	100.0	%	$	12,281	$	15.31
INDUSTRIAL:
Remaining 2005 (3)	—	—	—			—		—	—	—	—			—		—
2006	—	—	—			—		—	—	—	—			—		—
2007	—	—	—			—		—	—	—	—			—		—
2008	—	—	—			—		—	—	—	—			—		—
2009	—	—	—			—		—	—	—	—			—		—
2010	—	—	—			—		—	—	—	—			—		—
2011	—	—	—			—		—	1	164,540	100.0	%	$	1,184	$	7.20
2012	—	—	—			—		—	—	—	—			—		—
2013	—	—	—			—		—	—	—	—			—		—
2014 and beyond	—	—	—			—		—	—	—	—			—		—
Subtotal	—	—	—			—		—	1	164,540	100.0	%	$	1,184	$	7.20
TOTAL PORTFOLIO:
Remaining 2005 (3)	1	130,000	3.8	%	$	1,202	$	9.25	4	17,398	1.8	%	$	501	$	28.80
2006	6	210,200	6.2	%		3,877		18.44	8	49,737	5.1	%		889		17.87
2007	13	563,991	16.6	%		9,089		16.12	13	122,512	12.7	%		2,398		19.57
2008	9	258,836	7.6	%		5,383		20.80	9	244,957	25.3	%		2,716		11.09
2009	14	484,668	14.3	%		10,763		22.21	10	61,949	6.4	%		1,321		21.32
2010	9	334,545	9.9	%		9,127		27.28	5	49,012	5.1	%		1,137		23.20
2011	1	68,910	2.0	%		929		13.48	8	379,581	39.3	%		3,820		10.06
2012	4	180,383	5.3	%		5,949		32.98	—	—	—			—		—
2013	2	114,780	3.4	%		3,767		32.82	—	—	—			—		—
2014 and beyond	18	1,045,914	30.9	%		39,871		38.12	3	41,322	4.3	%		683		16.53
Total	77	3,392,227	100.0	%	$	89,957	$	26.52	60	966,468	100.0	%	$	13,465	$	13.93

⁽¹⁾ Excludes space leased under month-to-month leases and vacant space at June 30, 2005.

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

⁽³⁾ Represents leases expiring during the remainder of 2005 for which renewals have not been executed.

16

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Quarterly Lease Expirations for 2005

($ in thousands)

	# of Expiring Leases (1)	Total Square Feet(1), (2)	% of Total Leased Sq. Ft.		Annual Base Rent (3)		Annual Rent per Sq. Ft.(3)
OFFICE:
Q3 2005	16	219,158	3.1	%	$	3,488	$	15.92
Q4 2005	11	45,542	0.7	%		815		17.90
Subtotal 2005	27	264,700	3.8	%	$	4,303	$	16.26
INDUSTRIAL:
Q3 2005	—	—	—			—		—
Q4 2005	3	88,612	2.1	%	$	653	$	7.37
Subtotal 2005	3	88,612	2.1	%	$	653	$	7.37
TOTAL PORTFOLIO:
Q3 2005	16	219,158	1.9	%	$	3,488	$	15.92
Q4 2005	14	134,154	1.2	%		1,468		10.94
Total 2005	30	353,312	3.1	%	$	4,956	$	14.03

(1) Represents leases expiring during 2005 for which renewals have not been executed.

(2) Excludes space leased under month-to-month leases and vacant space at June 30, 2005.

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

17

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Top Ten Office and Top Ten Industrial Tenants

($ in thousands)

Tenant Name	Annual Base Rental Revenues (1)		Rentable Square Feet	Percentage of Total Annual Base Rental Revenues		Percentage of Total Rentable Square Feet
Office Properties:
The Boeing Company	$	11,487	803,229	5.5	%	6.7	%
AMN Healthcare		8,179	175,672	3.9	%	1.5	%
Fish & Richardson		5,970	139,538	2.9	%	1.2	%
DirecTV, Inc.		5,954	195,921	2.9	%	1.6	%
Diversa Corporation		5,092	136,908	2.4	%	1.1	%
Intuit, Inc.		4,534	278,711	2.2	%	2.3	%
Epson America, Inc.		4,177	162,852	2.0	%	1.4	%
Fair Isaac & Company		3,985	129,752	1.9	%	1.1	%
Memec, Inc.		3,742	114,780	1.8	%	1.0	%
Peregrine Systems, Inc.		3,699	104,450	1.8	%	0.9	%
Total Office Properties	$	56,819	2,241,813	27.3	%	18.8	%
Industrial Properties:
Celestica California, Inc.	$	2,531	303,533	1.2	%	2.5	%
Qwest Communications Corporation		2,439	244,800	1.2	%	2.0	%
Mattel, Inc.		2,382	192,053	1.1	%	1.6	%
Packard Hughes Interconnect		1,797	157,458	0.9	%	1.3	%
NBTY Manufacturing, LLC		1,488	286,139	0.7	%	2.4	%
Kraft Foods, Inc.		1,188	164,540	0.6	%	1.4	%
Targus, Inc.		1,059	200,646	0.5	%	1.7	%
Extron Electronics		1,044	157,730	0.5	%	1.3	%
United Plastics Group, Inc.		1,031	144,000	0.5	%	1.2	%
Ricoh Electronics		817	100,000	0.4	%	0.8	%
Total Industrial Properties	$	15,776	1,950,899	7.6	%	16.2	%

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

18

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

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

($ in thousands)

The Boeing Company	Rentable Square Feet	Annual Base Rental Revenues(1)		Lease Expiration Date
Boeing Satellite Systems
2260 E. Imperial Highway, El Segundo	286,151	$	5,494	July 31, 2007
1231 N. Miller Street, Anaheim	113,242		692	March 31, 2009
2240 E. Imperial Highway, El Segundo(2)	100,978		1,835	January 31, 2007
1145 N. Ocean Blvd., Anaheim	65,447		493	October 31, 2010
	565,818		8,514
Boeing Airplane-on-Ground Division
17930 Pacific Highway, Seattle (3)	211,139		2,232	December 31, 2007
Boeing Capital Corporation
3780 Kilroy Airport Way, Long Beach	15,547		438	September 30, 2005
Boeing Realty Corporation
3760 Kilroy Airport Way, Long Beach	10,725		303	August 31, 2005
Total	803,229	$	11,487

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

(2) Under the terms of the lease, either party may terminate the lease anytime after April 30, 2006 with sixty days advance notice.

(3) Under the terms of the lease, The Boeing Company has the right to terminate this lease effective December 31, 2006 by giving the Company written notice one year in advance.

19

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

2005 Acquisitions

($ in thousands)

PROPERTY ACQUISITIONS:
Property	Location	Type	Month of Acquisition	Square Feet	Purchase Price
1st QUARTER:
NONE
2nd QUARTER:
603 Valencia	Brea, CA	Office	May	45,900	$	7,300
Subtotal				45,900		7,300
TOTAL YEAR-TO-DATE ACQUISITIONS				45,900	$	7,300
LAND ACQUISITIONS:
Property	Location	Type	Month of Acquisition	Acreage	Purchase Price
1st QUARTER:
NONE
2nd QUARTER:
Santa Fe Summit - Phase II	56 Corridor	Undeveloped Land	June	11.3	$	24,000
Subtotal				11.3		24,000
TOTAL YEAR-TO-DATE ACQUISITIONS				11.3	$	24,000

20

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

2005 Dispositions and Properties Held for Sale

($ in thousands)

DISPOSITIONS:
Property	Location	Type	Month of Disposition	Square Feet	Sales Price
1st QUARTER:
2501 Pullman/1700 Carnegie	Santa Ana, CA	Office	March	128,266
525 North Brand	Glendale, CA	Office	March	46,043
5115 N. 27th Avenue	Phoenix, AZ	Industrial	March	130,877
Subtotal				305,186	$	38,710	(1)
2nd QUARTER:
NONE
TOTAL YEAR-TO-DATE DISPOSITIONS				305,186	$	38,710

PROPERTIES CLASSIFIED AS HELD FOR SALE AT QUARTER END:

Property	Location	Type	Month Classified as Held for Sale	Square Feet
1st QUARTER:
NONE
2nd QUARTER:
2260 E. El Segundo Blvd(2)	El Segundo, CA	Industrial	June	113,820

(1) The Company sold three properties through a portfolio transaction in March 2005. The sales price shown on this schedule represents the price received for all three properties.

(2) The Company classified its industrial property located at 2260 E. El Segundo Blvd., El Segundo, CA as held-for-sale as of June 30, 2005 for financial reporting purposes in accordance with SFAS 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”. The Company sold the property on July 22, 2005 for $22.5 million. The Company will record a gain on the sale. The property was not occupied as of June 30, 2005.

21

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Stabilized Development and Redevelopment Projects

($ in thousands)

DEVELOPMENT PROJECTS:

Project

Location

Type

Start Date

Compl. Date

Rentable Square Feet

Total Est. Investment

% Leased

1st QUARTER:

NONE

2nd QUARTER:

NONE

REDEVELOPMENT PROJECTS:

Project

Location

Pre and Post Redevelopment Type

Start Date

Compl. Date

Rentable Square Feet

Existing Investment(1)

Estimated Redevelopment Costs

Total Estimated Investment

Total Spent as of 6/30/2005

% Leased

1st QUARTER:

5717 Pacific Center

Sorrento Mesa

Office to Life Science

1Q 2003

1Q 2004

67,995

$

8,790

$

10,258

$

19,048

$

11,236

0

%

2nd QUARTER:

NONE

TOTAL YEAR-TO-DATE STABILIZED REDEVELOPMENT

$

8,790

$

10,258

$

19,048

$

11,236

0

%

(1) Represents total capitalized costs at the commencement of redevelopment.

22

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

In-Process and Committed Development and Redevelopment Projects

($ in thousands)

DEVELOPMENT PROJECTS:	Location	Type	Estimated Construction Period		Est. Stabilization Date(1)	Rentable Square Feet	Total Estimated Investment		Total Spent as of 6/30/2005		% Leased
Project			Start Date	Compl. Date
PROJECTS IN LEASE-UP:
None
PROJECTS UNDER CONSTRUCTION:
15227 Avenue of Science	I-15 Corridor	Office	3Q 2004	4Q 2005	4Q 2005	65,867	$	14,730	$	9,944	100	%
15253 Avenue of Science	I-15 Corridor	Office	3Q 2004	4Q 2005	4Q 2005	37,405		9,656		6,895	100	%
Subtotal						103,272		24,386		16,839
COMMITTED PROJECTS:
Santa Fe Summit - Phase I	56 Corridor	Office	3Q 2005	3Q 2007	3Q 2008	465,600		144,543		20,134	78	%
Innovation Corp. Ctr. - Lot 4(2)	I-15 Corridor	Office	1Q 2006	4Q 2006	4Q 2006	75,000		19,560		5,125	100	%
Subtotal						540,600		164,103		25,259
TOTAL IN-PROCESS AND COMMITTED PROJECTS:						643,872	$	188,489	$	42,098	84	%

REDEVELOPMENT PROJECTS:

Project	Location	Pre and Post Redevelopment Type	Estimated Construction Period		Est. Stabilization Date(1)	Rentable Square Feet	Existing Investment (3)		Estimated Redevelopment Costs		Total Estimated Investment		Total Spent as of 6/30/2005		% Committed(4)
			Start Date	Compl. Date
PROJECTS IN LEASE-UP:
909 N. Sepulveda Blvd.	El Segundo	Office	1Q 2003	3Q 2004	3Q 2005	241,603	$	37,799	$	30,944	$	68,743	$	56,069	25	%
TOTAL IN-PROCESS AND COMMITTED PROJECTS:						241,603	$	37,799	$	30,944	$	68,743	$	56,069	25	%

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

(2) This project and the two development projects under construction at June 30, 2005 are part of a three-building complex.

(3) Represents total capitalized costs at the commencement of redevelopment.

(4) Percentage committed includes executed leases and letters of intent, calculated on a square-foot basis

23

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Future Development Pipeline

($ in thousands)

Project	Location	Type	Total Site Acreage	Estimated Rentable Square Feet	Total Estimated Investment		Total Spent as of 6/30/2005
SAN DIEGO, CALIFORNIA:
Innovation Corporate Center - Lot 2	I-15 Corridor	Office	3.0	80,000	$	18,796	$	3,695
Kilroy Sabre Springs - Phase III	I-15 Corridor	Office	4.0	142,726		54,735		8,519
Pacific Corporate Center - Lots 3, 4 & 6	Sorrento Mesa	Office	10.9	225,000		50,543		16,571
Pacific Corporate Center - Lot 8	Sorrento Mesa	Office	5.0	95,000		27,492		8,449
Santa Fe Summit - Phase II	56 Corridor	Office	11.3	339,500		134,339		24,181
Sorrento Gateway - Lot 1	Sorrento Mesa	Office	3.4	54,000		13,162		4,728
Sorrento Gateway - Lot 2	Sorrento Mesa	Office	4.4	80,000		25,872		8,572
Sorrento Gateway - Lot 3	Sorrento Mesa	Office	3.4	60,000		19,387		6,053
Sorrento Gateway - Lot 7	Sorrento Mesa	Office	4.1	57,000		21,043		7,862
TOTAL FUTURE DEVELOPMENT PIPELINE			49.5	1,133,226	$	365,369	$	88,630

24

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Capital Structure

At June 30, 2005

($ in thousands)

	Shares/Units At June 30, 2005	Aggregate Principal Amount or $ Value Equivalent		% of Total Market Capitalization
DEBT:
Secured Debt		$	490,417	19.1	%
Unsecured Senior Notes			144,000	5.6	%
Unsecured Line of Credit			184,000	7.2	%
Total Debt		$	818,417	31.9	%
EQUITY:
7.450% Series A Cumulative Redeemable Preferred Units(1)	1,500,000	$	75,000	2.9	%
7.800% Series E Cumulative Redeemable Preferred Stock(2)	1,610,000		40,250	1.6	%
7.500% Series F Cumulative Redeemable Preferred Stock(2)	3,450,000		86,250	3.3	%
Common Units Outstanding(3)	3,716,893		176,515	6.9	%
Common Shares Outstanding(3)	28,899,939		1,372,458	53.4	%
Total Equity		$	1,750,473	68.1	%
TOTAL MARKET CAPITALIZATION		$	2,568,890	100.0	%

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

(2) Value based on $25.00 per share liquidation preference.

(3) Value based on closing share price of $47.49 at June 30, 2005.

25

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Debt Analysis

At June 30, 2005

($ in thousands)

TOTAL DEBT COMPOSITION

			Weighted Average
	% of Total Debt		Interest Rate		Maturity
Secured vs. Unsecured Debt:
Secured Debt	59.9	%	5.8	%	5.1
Unsecured Debt	40.1	%	5.0	%	4.5
Floating vs. Fixed Rate Debt:
Fixed Rate Debt(1)	81.6	%	5.8	%	5.4
Floating Rate Debt	18.4	%	4.4	%	2.7
Total Debt			5.5	%	4.9
Total Debt Including Loan Fees			5.8	%

UNSECURED LINE OF CREDIT

Total Line	Outstanding Balance	Expiration Date
$425,000	$184,000	October 2007

CAPITALIZED INTEREST & LOAN FEES

Quarter-to-Date	Year-to-Date
$2.2	$4.3

(1) Includes the impact of the interest-rate swap agreements listed on page 27.

26

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Debt Analysis

At June 30, 2005

($ in thousands)

DEBT MATURITY SCHEDULE

Floating/ Fixed Rate	Effective Rate		Maturity Date		Remaining 2005		2006		2007		2008		2009		After 2009		Total
Unsecured Debt:
Floating	4.43	%	10/22/2007	(1)					$	184,000							$	184,000
Fixed	5.72	%	8/4/2010													61,000		61,000
Fixed	6.45	%	8/4/2014													83,000		83,000
										184,000						144,000		328,000
Secured Debt:
Fixed	8.45	%	12/1/2005			10,016												10,016
Floating	4.23	%	7/1/2008	(2)								35,500						35,500
Floating	4.32	%	1/1/2009											31,000				31,000
Fixed	6.51	%	8/12/2007			118		248		17,049								17,415
Fixed	7.21	%	8/12/2007			83		178		4,326								4,587
Fixed	3.80	%	8/1/2008			772		1,588		1,650		73,401						77,411
Fixed	7.20	%	4/1/2009			1,071		2,256		2,423		2,604		75,475				83,829
Fixed	6.70	%	12/27/2011			528		1,112		1,189		1,271		1,359		71,433		76,892
Fixed	5.57	%	8/1/2012			555		1,160		1,226		1,297		1,370		74,498		80,106
Fixed	4.95	%	8/1/2012			258		536		563		592		622		31,094		33,665
Fixed	8.21	%	11/1/2008			346		736		799		750						2,631
Fixed	8.43	%	6/1/2009			473		1,007		1,095		1,191		608				4,374
Fixed	8.13	%	11/1/2014			230		489		530		575		623		6,789		9,236
Fixed	7.15	%	5/1/2017			643		1,359		1,459		1,567		1,683		17,044		23,755
	5.55	%				15,093		10,669		32,309		118,748		112,740		200,858		490,417
Effect of SWAPS	-0.06	%
Total	5.49	%			$	15,093	$	10,669	$	216,309	$	118,748	$	112,740	$	344,858	$	818,417

HEDGING INSTRUMENTS

Notional Amount	Instrument	Rate	Expiration Date
$50,000	Swap	2.57%	11/2005
25,000	Swap	2.98%	12/2006
25,000	Swap	2.98%	12/2006
$100,000

(1) The maturity date does not reflect the one-year extension option.

(2) The maturity date does not reflect the two one-year extension options.

27

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

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 (“FFO”), in the Company’s earnings release on July 25, 2005, 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 operating revenues (rental income, tenant reimbursements and other income) less property and related expenses (property expenses, real estate taxes, provision for bad debts 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 general and administrative expenses, interest expense, depreciation and amortization, gains and losses from property dispositions, discontinued operations, and extraordinary items, it provides a performance measure that, when compared year over year, reflects the 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 segment basis since NOI allows the Company to evaluate the impact that factors such as occupancy levels, lease structure, rental rates, and tenant base, which vary by segment type, 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, interest expense, depreciation and amortization costs, 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.

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 NOI for the stabilized properties that were operational for two comparable reporting periods. Because Same Store NOI excludes the change in NOI from properties developed, redeveloped, acquired and disposed of, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties that were operational for two comparable periods. 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, interest expense, depreciation and amortization costs, 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.

28

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Management Statements on Non-GAAP Supplemental Measures

EBITDA:

Management believes that earnings before interest, depreciation, amortization, minority interests and impairment loss (“EBITDA”) is a useful supplemental measure of the Company’s operating performance. When considered with other GAAP measures and FFO, management believes EBITDA gives the investment community a more complete understanding of the Company’s operating results before the impact of investing and financing transactions and facilitates comparisons with competitors. Management also believes it is appropriate to present EBITDA as it is used in several of the Company’s financial covenants for both its secured and unsecured debt. However, EBITDA 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 and, accordingly, the Company’s EBITDA may not be comparable to other REITs.

Funds From Operations:

Management believes that 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 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 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.

Funds Available for Distribution:

Management believes that Funds Available for Distribution (“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 and restricted stock compensation, the original issuance costs of redeemed preferred units, and the impairment loss on property held for sale, and then subtracting tenant improvements, leasing commissions, and recurring capital expenditures, and eliminating the net effect of straight-line rents and above (below) market rents for acquisition properties. FAD provides an additional perspective on the Company’s ability to fund cash needs and make distributions to shareholders by adjusting for the effect of these non-cash items included in FFO, as well as 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.

29

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Reconciliation of Same Store Net Operating Income to Net Income

(unaudited, $ in thousands)

	Three Months Ended June 30,
	2005			2004
Same Store Cash Net Operating Income	$	37,948		$	35,955
Adjustment:
GAAP Straight Line Rental Income		1,656			2,114
Same Store GAAP Net Operating Income (1)		39,604			38,069
Adjustment:
Non-Same Store GAAP Net Operating Income		5,143			3,087
Net Operating Income, as defined (1)		44,747			41,156
Adjustments:
Net Operating Income, as defined, from discontinued operations		48			(1,219	)
Other Expenses:
General and administrative expenses		(16,790	)		(5,250	)
Interest expense		(9,568	)		(9,148	)
Depreciation and amortization		(16,294	)		(14,140	)
Other Income:
Interest and other income		54			78
Income from Continuing Operations		2,197			11,477
Minority interests		(1,191	)		(3,482	)
(Loss) income from discontinued operations		(70	)		644
Preferred dividends		(2,402	)		(785	)
Net (Loss) Income Available for Common Shareholders	$	(1,466	)	$	7,854

(1) Please refer to page 28 for Management Statements on Net Operating Income and Same Store Net Operating Income.

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Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Reconciliation of EBITDA to Net Income

(unaudited, $ in thousands)

	Three Months Ended June 30,
	2005			2004
Net Income Available for Common Shareholders	$	(1,466	)	$	7,854
Preferred dividends		2,402			785
Adjustments for Continuing Operations:
Interest expense		9,568			9,148
Depreciation and amortization		16,294			14,140
Distributions on Cumulative Redeemable Preferred units		1,397			2,437
Minority interest in (loss) earnings of Operating Partnership		(206	)		1,045
Adjustments for Discontinued Operations:
Interest expense		—			—
Depreciation and amortization		47			418
Net gain on disposition of discontinued operations		—			64
Minority interest in (loss) earnings of Operating Partnership		(25	)		93
EBITDA Before Minority Interests (1)	$	28,011		$	35,984

(1) Please refer to page 29 for a Management Statement on EBITDA before minority interests.

31

Kilroy Realty Corporation

Second Quarter 2005 Supplemental Financial Report

Reconciliation of Funds Available for Distribution to GAAP Net Cash Provided by Operating Activities

(unaudited, $ in thousands)

	Three Months Ended June 30,					Six Months Ended June 30,
	2005			2004		2005		2004
Funds Available for Distribution (1)	$	8,821		$	17,118	$	25,870	$	34,280
Adjustments:
Tenant improvements, leasing commissions and recurring capital expenditures		4,065			5,644		9,240		9,382
Depreciation for furniture, fixtures and equipment		217			228		437		454
Accrued preferred dividends		2,402			785		4,804		1,570
Provision for uncollectible tenant receivables		(92	)		61		630		38
Changes in assets and liabilities (2)		11,613			256		8,306		(2,840	)
GAAP Net Cash Provided by Operating Activities	$	27,026		$	24,092	$	49,287	$	42,884

(1) Please refer to page 29 for a Management Statement on Funds Available for Distribution.

(2) Includes changes in the following assets and liabilities and miscellaneous other adjustments: current receivables; deferred leasing costs; prepaid expenses and other assets; accounts payable, accrued expenses and other liabilities; rents received in advance, security deposits, and deferred revenue; accrued distributions to Cumulative Redeemable Preferred unitholders; and other.

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