Exhibit 99.2

Contact:	FOR RELEASE:
Richard E. Moran Jr.	February 5, 2007
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

FOURTH QUARTER FINANCIAL RESULTS

LOS ANGELES, February 5, 2007 – Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its fourth quarter ended December 31, 2006 with net income available for common stockholders of $9.2 million, or $0.28 per share, compared to a net loss for common stockholders of $1.6 million, or $0.06 per share, in the fourth quarter of 2005. Revenues from continuing operations in the fourth quarter totaled $64.0 million, up from $59.6 million in the prior year’s fourth quarter. Funds from operations (FFO) for the period totaled $27.3 million, or $0.79 per share, compared to $8.5 million, or $0.26 per share, in the year-earlier period.

For its fiscal year ended December 31, 2006, KRC reported net income available for common stockholders of $72.3 million, or $2.30 per share, compared to $24.2 million, or $0.84 per share, in fiscal 2005. Revenues from continuing operations in 2006 totaled $251.2 million, up from $236.4 million in 2005. FFO for the year totaled $118.2 million, or $3.48 per share, compared to $63.6 million, or $1.95 per share, in 2005.

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

“Operating conditions in KRC’s primary Southern California real estate markets strengthened appreciably throughout 2006, boosting results in our existing portfolio and providing an excellent backdrop for our development-driven growth strategies,” said John B. Kilroy, Jr., the company’s president and chief executive officer. “In 2007, our stabilized properties are projected to benefit from higher rental rates and our nearly fully preleased development pipeline is scheduled to add over one million square feet of rentable space to our portfolio.”

KRC added one new office building with 77,000 rentable square feet to its stabilized portfolio in 2006 with a total estimated investment of $21 million. The new property, located in the Rancho Bernardo submarket of coastal San Diego, is 100% leased.

The company has five additional projects currently under development, all located in high quality submarkets of San Diego. These five projects encompass eight buildings totaling approximately 1.1 million rentable square feet and are 82% preleased. In the aggregate, they represent a total estimated investment of approximately $362 million, of which $171 million has been spent to date.

KRC also has one redevelopment project underway, a 107,000 square-foot property in Los Angeles County with a total estimated incremental investment of approximately $15 million. It is 77% preleased.

In January 2007, KRC acquired two value-added sites in San Diego, including Evening Creek Corporate Center, an existing two-building redevelopment opportunity along the I-15 corridor for $24.7 million, and the third phase of Santa Fe Summit, 10.5 acres of land adjacent to Phases I and II of the company’s existing Santa Fe Summit project on the 56 corridor for $28.0 million.

Earnings guidance for 2007 will be discussed by KRC management during the company’s February 5, 2007 earnings conference call. The call will begin at 11:00 a.m. Pacific time 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 (866) 271-5140, reservation #31562769. A replay of the conference call will be available via phone through February 16, 2007 at (888) 286-8010, reservation #32602994 or via the Internet at the company’s website.

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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 A 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 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 1.2 million square feet in Los Angeles and San Diego counties. At December 31, 2006, the company owned 7.8 million rentable square feet of commercial office space and 3.9 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, 2006		Three Months Ended December 31, 2005			Year Ended December 31, 2006			Year Ended December 31, 2005
Revenues from continuing operations	$	63,951	$	59,594		$	251,244		$	236,355
Revenues including discontinued operations	$	64,340	$	61,109		$	264,329		$	242,845
Net income (loss) available for common stockholders (1)	$	9,184	$	(1,648	)	$	72,256		$	24,211
Weighted average common shares outstanding - basic		32,246		28,785			31,244			28,711
Weighted average common shares outstanding - diluted		32,416		28,785			31,390			28,711
Net income (loss) per share of common stock - basic	$	0.28	$	(0.06	)	$	2.31		$	0.84
Net income (loss) per share of common stock - diluted	$	0.28	$	(0.06	)	$	2.30		$	0.84
Funds From Operations (2), (3)	$	27,311	$	8,506		$	118,184		$	63,603
Weighted average common shares/units outstanding - basic (4)		34,570		32,485			33,842			32,460
Weighted average common shares/units outstanding - diluted (4)		34,740		32,672			33,988			32,622
Funds From Operations per common share/unit - basic (4)	$	0.79	$	0.26		$	3.49		$	1.96
Funds From Operations per common share/unit - diluted (4)	$	0.79	$	0.26		$	3.48		$	1.95
Common shares outstanding at end of period							32,399			28,971
Common partnership units outstanding at end of period							2,319			3,670
Total common shares and units outstanding at end of period							34,718			32,641
						December 31, 2006			December 31, 2005
Stabilized portfolio occupancy rates:
Office							95.8	%		92.5	%
Industrial							95.8	%		99.3	%
Weighted average total							95.8	%		95.0	%
Los Angeles							93.2	%		91.2	%
Orange County							95.7	%		98.2	%
San Diego							98.6	%		94.9	%
Other							92.8	%		94.0	%
Weighted average total							95.8	%		95.0	%
Total square feet of stabilized properties owned at end of period:
Office							7,835			7,948
Industrial							3,870			4,587
Total							11,705			12,535

(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, 2006			December 31, 2005
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	293,059		$	321,988
Buildings and improvements		1,484,051			1,494,958
Undeveloped land and construction in progress		263,651			137,025
Total real estate held for investment		2,040,761			1,953,971
Accumulated depreciation and amortization		(443,807	)		(416,597	)
Real estate held for investment, net		1,596,954			1,537,374
Property held for sale, net		4,512			—
Total real estate assets, net		1,601,466			1,537,374
Cash and cash equivalents		11,948			3,881
Restricted cash		494			703
Funds held at qualified intermediary for 1031 exchange		43,794			—
Current receivables, net		5,890			5,759
Deferred rent receivables, net		61,929			55,048
Note receivable		11,096			11,213
Deferred leasing costs and acquisition related intangibles, net		49,019			50,074
Deferred financing costs, net		5,100			5,256
Prepaid expenses and other assets		8,616			5,166
TOTAL ASSETS	$	1,799,352		$	1,674,474
LIABILITIES & STOCKHOLDERS’ EQUITY
LIABILITIES:
Secured debt	$	459,198		$	473,282
Unsecured senior notes		144,000			144,000
Unsecured line of credit		276,000			225,000
Accounts payable, accrued expenses and other liabilities		67,729			129,089
Accrued distributions		19,610			17,856
Deferred revenue and acquisition related liabilities		25,353			22,051
Rents received in advance and tenant security deposits		19,900			19,828
Total liabilities		1,011,790			1,031,106
MINORITY INTERESTS:
7.45% Series A Cumulative Redeemable Preferred unitholders		73,638			73,638
Common unitholders of the Operating Partnership		39,628			50,462
Total minority interests		113,266			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		324			289
Additional paid-in capital		671,484			523,609
Deferred compensation		—			(1,998	)
Distributions in excess of earnings		(119,094	)		(124,214	)
Total stockholders’ equity		674,296			519,268
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,799,352		$	1,674,474

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KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended December 31, 2006			Three Months Ended December 31, 2005			Year Ended December 31, 2006			Year Ended December 31, 2005
REVENUES:
Rental income	$	56,461		$	54,431		$	224,498		$	213,084
Tenant reimbursements		6,762			5,080			24,365			22,379
Other property income		728			83			2,381			892
Total revenues		63,951			59,594			251,244			236,355
EXPENSES:
Property expenses		10,824			9,537			42,937			39,282
Real estate taxes		4,707			4,386			18,865			17,008
Provision for bad debts		118			(1,449	)		744			(665	)
Ground leases		509			421			2,016			1,679
General and administrative expenses		7,478			25,242			22,800			66,456
Interest expense		10,050			10,421			43,541			38,956
Depreciation and amortization		17,696			17,467			70,505			66,198
Total expenses		51,382			66,025			201,408			228,914
OTHER INCOME AND EXPENSE:
Interest income		812			270			1,653			604
Net settlement receipts on interest rate swaps		244			221			991			364
(Loss) gain on derivative instruments		(238	)		(101	)		(818	)		378
Total other income and expense		818			390			1,826			1,346
Income (loss) from continuing operations before minority interests		13,387			(6,041	)		51,662			8,787
Minority interests:
Distributions on Cumulative Redeemable Preferred units		(1,397	)		(1,397	)		(5,588	)		(5,588	)
Minority interest in (earnings) loss of Operating Partnership attributable to continuing operations		(644	)		1,135			(2,792	)		738
Total minority interests		(2,041	)		(262	)		(8,380	)		(4,850	)
Income (loss) from continuing operations		11,346			(6,303	)		43,282			3,937
Discontinued operations:
Revenues from discontinued operations		389			1,515			13,085			6,490
Expenses from discontinued operations		(278	)		(712	)		(2,564	)		(3,485	)
Net gain on disposition of discontinued operations		—			7,155			31,259			30,764
Minority interest attributable to discontinued operations		129			(901	)		(3,198	)		(3,887	)
Total income from discontinued operations		240			7,057			38,582			29,882
Net income		11,586			754			81,864			33,819
Preferred dividends		(2,402	)		(2,402	)		(9,608	)		(9,608	)
Net income (loss) available for common stockholders	$	9,184		$	(1,648	)	$	72,256		$	24,211
Weighted average shares outstanding - basic		32,246			28,785			31,244			28,711
Weighted average shares outstanding - diluted		32,416			28,785			31,390			28,711
Net income (loss) per common share - basic	$	0.28		$	(0.06	)	$	2.31		$	0.84
Net income (loss) per common share - diluted	$	0.28		$	(0.06	)	$	2.30		$	0.84

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KILROY REALTY CORPORATION FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended December 31, 2006		Three Months Ended December 31, 2005			Year Ended December 31, 2006			Year Ended December 31, 2005
Net (loss) income available for common stockholders	$	9,184	$	(1,648	)	$	72,256		$	24,211
Adjustments:
Minority interest in earnings Minority interest in earnings (loss) of Operating Partnership		515		(234	)		5,990			3,149
Depreciation and amortization		17,612		17,543			71,197			67,007
Net gain on disposition of discontinued operations		—		(7,155	)		(31,259	)		(30,764	)
Funds From Operations (1), (2)	$	27,311	$	8,506		$	118,184		$	63,603
Weighted average common shares/units outstanding - basic		34,570		32,485			33,842			32,460
Weighted average common shares/units outstanding - diluted		34,740		32,672			33,988			32,622
Funds From Operations per common share/unit - basic	$	0.79	$	0.26		$	3.49		$	1.96
Funds From Operations per common share/unit - diluted	$	0.79	$	0.26		$	3.48		$	1.95

⁽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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