Exhibit 99.2

Contact:	FOR RELEASE:
Richard E. Moran Jr. Executive Vice President and Chief Financial Officer (310) 481-8483 or Tyler H. Rose Senior Vice President and Treasurer (310) 481-8484	January 30, 2006

KILROY REALTY CORPORATION REPORTS

FOURTH QUARTER FINANCIAL RESULTS

LOS ANGELES, CA, January 30, 2006 – Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its fourth quarter ended December 31, 2005, with a net loss for common stockholders of $1.6 million, or $0.06 per share, compared to net income available for common stockholders of $3.3 million, or $0.12 per share, in the fourth quarter of 2004. Revenues from continuing operations in the fourth quarter totaled $61.0 million, up from $57.2 million in the prior year’s fourth quarter. Funds from operations (FFO) for the period totaled $8.5 million, or $0.26 per share, compared to $19.1 million, or $0.59 per share, in the year-earlier quarter.

For its fiscal year ended December 31, 2005, Kilroy Realty reported net income available for common stockholders of $24.2 million, or $0.84 per share, compared to $30.0 million, or $1.06 per share, in fiscal 2004. Revenues from continuing operations in 2005 totaled $241.7 million, up from $218.1 million in 2004. FFO for the year totaled $63.6 million, or $1.95 per share, compared to $87.6 million, or $2.70 per share, in 2004.

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

“Commercial real estate markets in Southern California showed meaningful improvement during 2005,” said John B. Kilroy, Jr., president and chief executive officer of KRC. “We capitalized on the stronger environment with an aggressive leasing program that boosted our stabilized year-end occupancy to 95% and a strategic development program that has positioned the company for long-term growth.”

In total, KRC added new and redeveloped properties to its stabilized portfolio in 2005 that have a total estimated investment of $137 million, including $23 million of new development, $83 million of redevelopment, and $31 million of acquisitions. These properties, totaling approximately 762,000 rentable square feet, were 86% leased or committed at year-end.

Entering 2006, KRC has two development projects currently under construction. The two projects encompass five buildings that total approximately 538,000 square feet and that are each 100% preleased. These two development projects represent a total estimated investment of approximately $166 million, of which $40 million has been spent to date.

The company also significantly expanded its pipeline of developable land in strategic areas of coastal San Diego County during 2005, acquiring 11 acres of fully entitled land along the 56 Freeway and contracting to acquire an additional 25 acres in Carlsbad. KRC now owns entitled land representing potential development of approximately 1.8 million square feet of office space in the San Diego region.

Earnings guidance for 2006 will be discussed by KRC management during the company’s January 31, 2006 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) 901-5213, reservation #16425520. A replay of the conference call will be available via phone through February 9, 2006 at (888) 286-8010, reservation #80200094 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

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which its principal tenants compete; 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 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, current 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. Kilroy Realty currently has an in-process development pipeline of approximately 538,000 square feet of office space in San Diego County. At December 31, 2005, the company owned 7.9 million rentable square feet of commercial office space and 4.6 million rentable 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 December 31, 2005			Three Months Ended December 31, 2004		Year Ended December 31, 2005			Year Ended December 31, 2004
Revenues from continuing operations	$	60,997		$	57,227	$	241,715		$	218,111
Revenues including discontinued operations	$	61,147		$	58,504	$	242,970		$	225,675
Net (loss) income available for common stockholders (1)	$	(1,648	)	$	3,326	$	24,211		$	29,988
Weighted average common shares outstanding—basic		28,785			28,368		28,711			28,244
Weighted average common shares outstanding—diluted		28,972			28,581		28,873			28,422
Net (loss) income per share of common stock—basic	$	(0.06	)	$	0.12	$	0.84		$	1.06
Net (loss) income per share of common stock—diluted	$	(0.06	)	$	0.12	$	0.84		$	1.06
Funds From Operations (2), (3)	$	8,506		$	19,069	$	63,603		$	87,643
Weighted average common shares/units outstanding—basic (4)		32,485			32,358		32,460			32,317
Weighted average common shares/units outstanding—diluted (4)		32,672			32,572		32,622			32,495
Funds From Operations per common share/unit—basic (4)	$	0.26		$	0.59	$	1.96		$	2.71
Funds From Operations per common share/unit—diluted (4)	$	0.26		$	0.59	$	1.95		$	2.70
Common shares outstanding at end of period							28,971			28,549
Common partnership units outstanding at end of period							3,670			3,989
Total common shares and units outstanding at end of period							32,641			32,538
						December 31, 2005			December 31, 2004
Stabilized portfolio occupancy rates:
Los Angeles							91.2	%		86.5	%
Orange County							98.2	%		99.2	%
San Diego							94.9	%		97.1	%
Other							94.0	%		92.3	%
Weighted average total							95.0	%		94.6	%
Total square feet of stabilized properties owned at end of period:
Office							7,948			7,674
Industrial							4,587			4,603
Total							12,535			12,277

(1) Net income after minority interests.

(2) Reconciliation of Net Income to Funds From Operations and management statement on Funds From Operations are 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)

	December 31, 2005			December 31, 2004
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	321,988		$	304,033
Buildings and improvements		1,494,958			1,465,285
Undeveloped land and construction in progress		137,025			93,912
Total real estate held for investment		1,953,971			1,863,230
Accumulated depreciation and amortization		(416,597	)		(372,656	)
Total real estate assets, net		1,537,374			1,490,574
Cash and cash equivalents		3,881			4,853
Restricted cash		703			332
Current receivables, net		5,759			4,843
Deferred rent receivables, net		55,048			46,816
Note receivable		11,213
Deferred leasing costs and other related intangibles, net		50,074			50,711
Deferred financing costs, net		5,256			5,849
Prepaid expenses and other assets		5,166			5,046
TOTAL ASSETS	$	1,674,474		$	1,609,024
LIABILITIES & STOCKHOLDERS’ EQUITY
LIABILITIES:
Secured debt	$	473,282		$	490,441
Unsecured senior notes		144,000			144,000
Unsecured line of credit		225,000			167,000
Accounts payable, accrued expenses and other liabilities		134,558			73,005
Accrued distributions		17,856			16,923
Rents received in advance, tenant security deposits and deferred revenue		36,410			37,979
Total liabilities		1,031,106			929,348
MINORITY INTERESTS:
7.45% Series A Cumulative Redeemable Preferred unitholders		73,638			73,638
Common unitholders of the Operating Partnership		50,462			59,491
Total minority interests		124,100			133,129
STOCKHOLDERS’ EQUITY:
7.80% Series E Cumulative Redeemable Preferred stock		38,425			38,425
7.50% Series F Cumulative Redeemable Preferred stock		83,157			83,157
Common stock		289			286
Additional paid-in capital		523,609			515,518
Deferred compensation		(1,998	)		(1,412	)
Distributions in excess of earnings		(124,214	)		(89,427	)
Total stockholders’ equity		519,268			546,547
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,674,474		$	1,609,024

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KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended December 31, 2005			Three Months Ended December 31, 2004			Year Ended December 31, 2005			Year Ended December 31, 2004
REVENUES:
Rental income	$	55,646		$	50,363		$	217,749		$	195,760
Tenant reimbursements		5,268			6,053			23,073			21,149
Other property income		83			811			893			1,202
Total revenues		60,997			57,227			241,715			218,111
EXPENSES:
Property expenses		9,785			8,759			39,997			33,865
Real estate taxes		4,496			4,082			17,444			16,295
Provision for bad debts		(1,444	)		798			(648	)		886
Ground leases		421			405			1,679			1,401
General and administrative expenses		25,242			11,679			66,456			34,021
Interest expense		10,452			8,975			39,153			33,994
Depreciation and amortization		17,739			15,137			67,352			58,551
Total expenses		66,691			49,835			231,433			179,013
OTHER INCOME AND EXPENSE:
Interest and other income		270			59			604			521
Net settlement receipts (payments) on interest rate swaps		221			(503	)		364			(2,893	)
(Loss) gain on derivative instruments		(101	)		956			378			3,099
Total other income and expense		390			512			1,346			727
(Loss) income from continuing operations before minority interests		(5,304	)		7,904			11,628			39,825
Minority interests:
Distributions on Cumulative Redeemable
Preferred units		(1,397	)		(2,183	)		(5,588	)		(9,579	)
Original issuance costs of redeemed preferred units					(1,200	)					(1,200	)
Minority interest in loss (earnings) of Operating Partnership attributable to continuing operations		1,051			(398	)		411			(3,202	)
Total minority interests		(346	)		(3,781	)		(5,177	)		(13,981	)
(Loss) income from continuing operations		(5,650	)		4,123			6,451			25,844
Discontinued operations:
Revenues from discontinued operations		150			1,277			1,255			7,564
Expenses from discontinued operations		(84	)		(828	)		(1,091	)		(4,184	)
Net gain on disposition of discontinued operations		7,155						30,764			6,148
Impairment loss on property held for sale											(726	)
Minority interest in earnings of Operating Partnership attributable to discontinued operations		(817	)		(48	)		(3,560	)		(1,105	)
Total income from discontinued operations		6,404			401			27,368			7,697
Net income		754			4,524			33,819			33,541
Preferred dividends		(2,402	)		(1,198	)		(9,608	)		(3,553	)
Net (loss) income available for common stockholders	$	(1,648	)	$	3,326		$	24,211		$	29,988
Weighted average shares outstanding—basic		28,785			28,368			28,711			28,244
Weighted average shares outstanding—diluted		28,972			28,581			28,873			28,422
Net (loss) income per common share—basic	$	(0.06	)	$	0.12		$	0.84		$	1.06
Net (loss) income per common share—diluted	$	(0.06	)	$	0.12		$	0.84		$	1.06

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KILROY REALTY CORPORATION FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended December 31, 2005			Three Months Ended December 31, 2004		Year Ended December 31, 2005			Year Ended December 31, 2004
Net (loss) income available for common stockholders	$	(1,648	)	$	3,326	$	24,211		$	29,988
Adjustments:
Minority interest in earnings Minority interest in (loss) earnings of Operating Partnership		(234	)		446		3,149			4,307
Depreciation and amortization		17,543			15,297		67,007			59,496
Net gain on disposition of discontinued operations		(7,155	)				(30,764	)		(6,148	)
Funds From Operations (1), (2)	$	8,506		$	19,069	$	63,603		$	87,643
Weighted average common shares/units outstanding—basic		32,485			32,358		32,460			32,317
Weighted average common shares/units outstanding—diluted		32,672			32,572		32,622			32,495
Funds From Operations per common share/unit—basic	$	0.26		$	0.59	$	1.96		$	2.71
Funds From Operations per common share/unit—diluted	$	0.26		$	0.59	$	1.95		$	2.70

(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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