Exhibit 99.2

Contact:	FOR RELEASE:
Richard E. Moran Jr.	October 22, 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

THIRD QUARTER FINANCIAL RESULTS

LOS ANGELES, October 22, 2007 – Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its third quarter ended September 30, 2007 with net income available for common stockholders of $9.0 million, or $0.28 per share, compared to $31.6 million, or $0.98 per share, in the third quarter of 2006. Revenues from continuing operations in the third quarter totaled $67.6 million, up from $62.7 million in the prior year’s third quarter. Funds from operations (FFO) for the period totaled $28.2 million, or $0.81 per share, compared to $26.5 million, or $0.76 per share, in the year-earlier period.

For the first nine months of 2007, KRC reported net income available for common stockholders of $38.6 million, or $1.19 per share, compared to $63.1 million, or $2.03 per share, in the first nine months of 2006. Revenues from continuing operations in the nine-month period totaled $196.2 million, up from $187.3 million in the same period of 2006. FFO in the first nine months of 2007 totaled $80.9 million, or $2.33 per share, compared to $90.9 million, or $2.69 per share, in first nine months of 2006.

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

“Solid demand and restrained supply characterized market conditions for our commercial real estate portfolio last quarter,” said John B. Kilroy, Jr., president and chief executive officer of KRC. “In our development program, we delivered more than 780,000 square feet of new office space in two projects during the quarter, with both projects 100% leased and occupied at quarter-end,” he said.

KRC currently has three buildings under construction, all located in coastal submarkets of central San Diego County. These three buildings total approximately 344,000 rentable square feet and are 42% pre-leased. In the aggregate, they represent a total estimated investment of approximately $137 million, of which $81 million has been spent to date.

The company also has two redevelopment projects underway, a 107,000 square-foot property in Los Angeles County and a two-building, 104,500 square-foot property located along the I-15 corridor in central San Diego County. The two projects represent a total estimated incremental investment of approximately $26 million, of which $16 million has been spent to date. They are 49% leased.

Updated earnings guidance for 2007 will be discussed by KRC management during the company’s October 23, 2007 earnings conference call. The call will begin at 10:00 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 (888) 679-8033, reservation #84724380. A replay of the conference call will be available via phone through November 9, 2007 at (888) 286-8010, reservation #12016258, 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

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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 60 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 556,000 square feet in Los Angeles and San Diego counties. At September 30, 2007, the company owned 8.6 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 September 30, 2007		Three Months Ended September 30, 2006		Nine Months Ended September 30, 2007			Nine Months Ended September 30, 2006
Revenues from continuing operations	$	67,639	$	62,661	$	196,249		$	187,292
Revenues including discontinued operations	$	67,921	$	63,058	$	196,629		$	199,988
Net income available for common stockholders (1)	$	9,028	$	31,574	$	38,601		$	63,073
Weighted average common shares outstanding - basic		32,373		32,200		32,364			30,906
Weighted average common shares outstanding - diluted		32,502		32,324		32,491			31,044
Net income per share of common stock - basic	$	0.28	$	0.98	$	1.19		$	2.04
Net income per share of common stock - diluted	$	0.28	$	0.98	$	1.19		$	2.03
Funds From Operations (2), (3)	$	28,212	$	26,462	$	80,911		$	90,874
Weighted average common shares/units outstanding - basic (4)		34,621		34,570		34,614			33,597
Weighted average common shares/units outstanding - diluted (4)		34,749		34,694		34,740			33,735
Funds From Operations per common share/unit - basic (4)	$	0.81	$	0.77	$	2.34		$	2.70
Funds From Operations per common share/unit - diluted (4)	$	0.81	$	0.76	$	2.33		$	2.69
Common shares outstanding at end of period						32,707			32,389
Common partnership units outstanding at end of period						2,248			2,329
Total common shares and units outstanding at end of period						34,955			34,718
					September 30, 2007			September 30, 2006
Stabilized portfolio occupancy rates:
Office						93.4	%		96.2	%
Industrial						91.0	%		96.1	%
Weighted average total						92.6	%		96.2	%
Los Angeles						96.2	%		93.4	%
Orange County						91.1	%		95.6	%
San Diego						91.4	%		99.7	%
Other						93.2	%		92.6	%
Weighted average total						92.6	%		96.2	%
Total square feet of stabilized properties owned at end of period:
Office						8,620			7,823
Industrial						3,870			4,179
Total						12,490			12,002

(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)

	September 30, 2007			December 31, 2006
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	312,057		$	293,059
Buildings and improvements		1,730,833			1,484,051
Undeveloped land and construction in progress		250,028			263,651
Total real estate held for investment		2,292,918			2,040,761
Accumulated depreciation and amortization		(488,050	)		(443,807	)
Total real estate held for investment, net		1,804,868			1,596,954
Properties held for sale, net					4,512
Total real estate assets, net		1,804,868			1,601,466
Cash and cash equivalents		3,655			11,948
Restricted cash		1,362			494
Funds held at qualified intermediary for Section 1031 exchange					43,794
Marketable securities		455
Current receivables, net		4,231			5,890
Deferred rent receivables, net		66,073			61,929
Notes receivable		11,002			11,096
Deferred leasing costs and acquisition related intangibles, net		56,629			49,019
Deferred financing costs, net		9,144			5,100
Prepaid expenses and other assets, net		6,331			8,616
TOTAL ASSETS	$	1,963,750		$	1,799,352
LIABILITIES & STOCKHOLDERS’ EQUITY
LIABILITIES:
Secured debt	$	398,283		$	459,198
Exchangeable senior notes, net		455,860
Unsecured senior notes		144,000			144,000
Unsecured line of credit		52,000			276,000
Accounts payable, accrued expenses and other liabilities		67,356			67,729
Accrued distributions		20,610			19,610
Deferred revenue and acquisition related liabilities		56,638			25,353
Rents received in advance and tenant security deposits		17,862			19,900
Total liabilities		1,212,609			1,011,790
MINORITY INTERESTS:
7.45% Series A Cumulative Redeemable
Preferred units of the Operating Partnership		73,638			73,638
Common units of the Operating Partnership		35,968			39,628
Total minority interests		109,606			113,266
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		327			324
Additional paid-in capital		654,569			671,484
Distributions in excess of earnings		(134,943	)		(119,094	)
Total stockholders’ equity		641,535			674,296
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,963,750		$	1,799,352

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KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended September 30, 2007			Three Months Ended September 30, 2006			Nine Months Ended September 30, 2007			Nine Months Ended September 30, 2006
REVENUES:
Rental income	$	60,560		$	56,264		$	173,329		$	168,036
Tenant reimbursements		6,945			5,876			19,729			17,603
Other property income		134			521			3,191			1,653
Total revenues		67,639			62,661			196,249			187,292
EXPENSES:
Property expenses		12,285			11,344			34,582			32,112
Real estate taxes		5,374			4,728			14,973			14,158
Provision for bad debts		(111	)		56			(310	)		626
Ground leases		511			514			1,529			1,507
General and administrative expenses		8,719			5,673			27,227			15,322
Interest expense		9,009			10,312			26,737			33,491
Depreciation and amortization		18,771			17,764			53,753			52,808
Total expenses		54,558			50,391			158,491			150,024
OTHER INCOME AND EXPENSE:
Interest and other investment income		305			359			1,295			841
Net settlement receipts on interest rate swaps					299						747
Loss on derivative instruments					(324	)					(580	)
Total other income		305			334			1,295			1,008
Income from continuing operations before minority interests		13,386			12,604			39,053			38,276
Minority interests:
Distributions on Cumulative Redeemable Preferred units		(1,397	)		(1,397	)		(4,191	)		(4,191	)
Minority interest in earnings of Operating Partnership attributable to continuing operations		(620	)		(593	)		(1,807	)		(2,148	)
Total minority interests		(2,017	)		(1,990	)		(5,998	)		(6,339	)
Income from continuing operations		11,369			10,614			33,055			31,937
Discontinued operations:
Revenues from discontinued operations		282			397			380			12,696
Expenses from discontinued operations		(217	)		(719	)		(236	)		(2,286	)
Net gain on dispositions of discontinued operations					25,603			13,474			31,259
Minority interest in earnings of Operating Partnership attributable to discontinued operations		(4	)		(1,919	)		(866	)		(3,327	)
Total income from discontinued operations		61			23,362			12,752			38,342
Net income		11,430			33,976			45,807			70,279
Preferred dividends		(2,402	)		(2,402	)		(7,206	)		(7,206	)
Net income available for common stockholders	$	9,028		$	31,574		$	38,601		$	63,073
Weighted average shares outstanding - basic		32,373			32,200			32,364			30,906
Weighted average shares outstanding - diluted		32,502			32,324			32,491			31,044
Net income per common share - basic	$	0.28		$	0.98		$	1.19		$	2.04
Net income per common share - diluted	$	0.28		$	0.98		$	1.19		$	2.03

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KILROY REALTY CORPORATION FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended September 30, 2007		Three Months Ended September 30, 2006			Nine Months Ended September 30, 2007			Nine Months Ended September 30, 2006
Net income available for common stockholders	$	9,028	$	31,574		$	38,601		$	63,073
Adjustments:
Minority interest in earnings of Operating Partnership		624		2,512			2,673			5,475
Depreciation and amortization of real estate assets		18,560		17,979			53,111			53,585
Net gain on dispositions of discontinued operations				(25,603	)		(13,474	)		(31,259	)
Funds From Operations (1), (2)	$	28,212	$	26,462		$	80,911		$	90,874
Weighted average common shares/units outstanding - basic		34,621		34,570			34,614			33,597
Weighted average common shares/units outstanding - diluted		34,749		34,694			34,740			33,735
Funds From Operations per common share/unit - basic	$	0.81	$	0.77		$	2.34		$	2.70
Funds From Operations per common share/unit - diluted	$	0.81	$	0.76		$	2.33		$	2.69

(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 stockholders and common unitholders.

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