Exhibit 99.2

Contact:	FOR RELEASE:
Richard E. Moran Jr.	July 24, 2006
Executive Vice President
and Chief Financial Officer
(310) 481-8483
or
Tyler H. Rose
Senior Vice President
and Treasurer
(310) 481-8484

KILROY REALTY CORPORATION REPORTS

SECOND QUARTER FINANCIAL RESULTS

LOS ANGELES, July 24, 2006 – Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its second quarter ended June 30, 2006 with net income available for common stockholders of $18.0 million, or $0.58 per share, compared to a net loss of $1.6 million, or $0.05 per share, in the second quarter of 2005. Revenues from continuing operations in the second quarter totaled $73.5 million, up from $60.2 million in the prior year’s second quarter. Funds from operations (FFO) for the period totaled $37.6 million, or $1.11 per share, compared to $14.7 million, or $0.45 per share, in the year-earlier period.

For the first six months of 2006, KRC reported net income available to common stockholders of $31.5 million, or $1.04 per share, compared to $11.8 million, or $0.41 per share, in the first half of 2005. Revenues from continuing operations in the six-month period totaled $136.5 million, up from $119.6 million in the same period of 2005. FFO in the first half of 2006 totaled $64.4 million, or $1.94 per share, compared to $40.9 million, or $1.26 per share, in first half of 2005. Second quarter and year-to-date results include $9.8 million, or $0.29 per share, related to an early lease termination at an industrial property in Orange County.

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

“Southern California commercial real estate markets remain robust, particularly in the coastal submarkets where KRC operates,” said John B. Kilroy, Jr., the company’s president and chief executive officer. “Occupancy in our stabilized portfolio is now above 97% and we continue to expand our successful development and redevelopment programs in San Diego and Los Angeles.”

KRC currently has four projects under development, all located in high growth submarkets of San Diego. The four projects encompass seven buildings totaling approximately one million rentable square feet and are 86% preleased. In the aggregate, these projects represent a total estimated investment of approximately $311 million, of which $112 million has been spent to date. KRC has one project in redevelopment in Los Angeles County with a total estimated incremental investment of approximately $13 million.

Earnings guidance for 2006 will be discussed by KRC management during the company’s July 25, 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) 435-1398, reservation #98837909. A replay of the conference call will be available via phone through August 5, 2006 at (888) 286-8010, reservation #39030188 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; Kilroy Realty’s ability to timely lease or re-lease space at current or anticipated rents; changes in interest

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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 and redevelopment pipeline of approximately 1.1 million square feet in Los Angeles and San Diego counties. At June 30, 2006, the company owned 7.8 million rentable square feet of commercial office space and 4.4 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 June 30, 2006		Three Months Ended June 30, 2005			Six Months Ended June 30, 2006			Six Months Ended June 30, 2005
Revenues from continuing operations	$	73,450	$	60,198		$	136,543		$	119,616
Revenues including discontinued operations	$	73,450	$	60,556		$	136,929		$	121,391
Net income (loss) available for common stockholders (1)	$	17,975	$	(1,636	)	$	31,502		$	11,788
Weighted average common shares outstanding - basic		31,049		28,739			30,249			28,648
Weighted average common shares outstanding - diluted		31,172		28,739			30,394			28,798
Net income (loss) per share of common stock - basic	$	0.58	$	(0.05	)	$	1.04		$	0.41
Net income (loss) per share of common stock - diluted	$	0.58	$	(0.05	)	$	1.04		$	0.41
Funds From Operations (2), (3)	$	37,630	$	14,695		$	64,416		$	40,946
Weighted average common shares/units outstanding - basic (4)		33,689		32,458			33,102			32,439
Weighted average common shares/units outstanding - diluted (4)		33,812		32,594			33,247			32,589
Funds From Operations per common share/unit - basic (4)	$	1.12	$	0.45		$	1.95		$	1.26
Funds From Operations per common share/unit - diluted (4)	$	1.11	$	0.45		$	1.94		$	1.26
Common shares outstanding at end of period							32,092			28,900
Common partnership units outstanding at end of period							2,626			3,717
Total common shares and units outstanding at end of period							34,718			32,617
						June 30, 2006			June 30, 2005
Stabilized portfolio occupancy rates:
Los Angeles							93.7	%		92.4	%
Orange County							99.0	%		98.5	%
San Diego							99.5	%		94.3	%
Other							92.7	%		93.0	%
Weighted average total							97.4	%		95.2	%
Total square feet of stabilized properties owned at end of period:
Office							7,847			7,607
Industrial							4,423			4,358
Total							12,270			11,965

⁽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 stockholders 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, 2006			December 31, 2005
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	320,778		$	321,988
Buildings and improvements		1,481,215			1,494,958
Undeveloped land and construction in progress		189,558			137,025
Total real estate held for investment		1,991,551			1,953,971
Accumulated depreciation and amortization		(425,708	)		(416,597	)
Total real estate assets, net		1,565,843			1,537,374
Cash and cash equivalents		8,583			3,881
Restricted cash		614			703
Current receivables, net		3,951			5,759
Deferred rent receivables, net		58,579			55,048
Note receivable		11,155			11,213
Deferred leasing costs and other related intangibles, net		49,108			50,074
Deferred financing costs, net		6,396			5,256
Prepaid expenses and other assets		9,533			5,166
TOTAL ASSETS	$	1,713,762		$	1,674,474
LIABILITIES & STOCKHOLDERS’ EQUITY
LIABILITIES:
Secured debt	$	465,562		$	473,282
Unsecured senior notes		144,000			144,000
Unsecured line of credit		202,000			225,000
Accounts payable, accrued expenses and other liabilities		60,203			134,558
Accrued distributions		19,610			17,856
Rents received in advance, tenant security deposits and deferred revenue		43,297			36,410
Total liabilities		934,672			1,031,106
MINORITY INTERESTS:
7.45% Series A Cumulative Redeemable Preferred unitholders		73,638			73,638
Common unitholders of the Operating Partnership		44,199			50,462
Total minority interests		117,837			124,100
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		321			289
Additional paid-in capital		664,860			523,609
Deferred compensation		—			(1,998	)
Distributions in excess of earnings		(125,510	)		(124,214	)
Total stockholders’ equity		661,253			519,268
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,713,762		$	1,674,474

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KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended June 30, 2006			Three Months Ended June 30, 2005			Six Months Ended June 30, 2006			Six Months Ended June 30, 2005
REVENUES:
Rental income	$	57,133		$	53,700		$	113,706		$	107,212
Tenant reimbursements		6,356			6,095			11,939			11,781
Other property income		9,961			403			10,898			623
Total revenues		73,450			60,198			136,543			119,616
EXPENSES:
Property expenses		10,913			9,996			21,089			19,329
Real estate taxes		4,766			4,410			9,569			8,755
Provision for bad debts		56			272			581			1,408
Ground leases		474			443			993			848
General and administrative expenses		4,714			16,790			9,649			22,814
Interest expense		11,208			9,563			23,179			18,964
Depreciation and amortization		18,294			16,669			35,924			33,249
Total expenses		50,425			58,143			100,984			105,367
OTHER INCOME AND EXPENSE:
Interest and other income		231			54			483			111
Net settlement receipts (payments) on interest rate swaps		254			62			448			(40	)
(Loss) gain on derivative instruments		(179	)		(280	)		(255	)		364
Total other income and expense		306			(164	)		676			435
Income from continuing operations before minority interests		23,331			1,891			36,235			14,684
Minority interests:
Distributions on Cumulative Redeemable
Preferred units		(1,397	)		(1,397	)		(2,794	)		(2,794	)
Minority interest in (earnings) loss of Operating Partnership attributable to continuing operations		(1,557	)		245			(2,414	)		(825	)
Total minority interests		(2,954	)		(1,152	)		(5,208	)		(3,619	)
Income from continuing operations		20,377			739			31,027			11,065
Discontinued operations:
Revenues from discontinued operations		—			358			386			1,775
Expenses from discontinued operations		—			(344	)		(214	)		(1,298	)
Net gain on disposition of discontinued operations		—			—			5,655			5,779
Minority interest in loss (earnings) of Operating Partnership attributable to discontinued operations		—			13			(548	)		(729	)
Total income from discontinued operations		—			27			5,279			5,527
Net income		20,377			766			36,306			16,592
Preferred dividends		(2,402	)		(2,402	)		(4,804	)		(4,804	)
Net income (loss) available for common stockholders	$	17,975		$	(1,636	)	$	31,502		$	11,788
Weighted average shares outstanding - basic		31,049			28,739			30,249			28,648
Weighted average shares outstanding - diluted		31,172			28,739			30,394			28,798
Net income (loss) per common share - basic	$	0.58		$	(0.05	)	$	1.04		$	0.41
Net income (loss) per common share - diluted	$	0.58		$	(0.05	)	$	1.04		$	0.41

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KILROY REALTY CORPORATION FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended June 30, 2006		Three Months Ended June 30, 2005			Six Months Ended June 30, 2006			Six Months Ended June 30, 2005
Net income (loss) available for common stockholders	$	17,975	$	(1,636	)	$	31,502		$	11,788
Adjustments:
Minority interest in earnings (loss) of Operating Partnership		1,557		(258	)		2,962			1,554
Depreciation and amortization		18,098		16,589			35,607			33,383
Net gain on disposition of discontinued operations		—		—			(5,655	)		(5,779	)
Funds From Operations (1), (2)	$	37,630	$	14,695		$	64,416		$	40,946
Weighted average common shares/units outstanding - basic		33,689		32,458			33,102			32,439
Weighted average common shares/units outstanding - diluted		33,812		32,594			33,247			32,589
Funds From Operations per common share/unit - basic	$	1.12	$	0.45		$	1.95		$	1.26
Funds From Operations per common share/unit - diluted	$	1.11	$	0.45		$	1.94		$	1.26

⁽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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