Exhibit 99.2

Contact:	FOR RELEASE:
Richard E. Moran Jr.	January 26, 2009
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, January 26, 2009 – Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its fourth quarter ended December 31, 2008 with net income available for common stockholders of $5.9 million, or $0.18 per share, compared to $65.6 million, or $2.01 per share, in the fourth quarter of 2007. The company’s 2007 fourth quarter net income includes net gains of approximately $61 million on the sale of properties. Revenues from continuing operations in the fourth quarter totaled $72.4 million, up from $69.7 million in the prior year’s fourth quarter. Funds from operations (FFO) for the period totaled $27.2 million, or $0.78 per share, compared to $29.7 million, or $0.85 per share, in the year-earlier period.

For its fiscal year ended December 31, 2008, KRC reported net income available to common stockholders of $34.5 million, or $1.06 per share, compared to $104.2 million, or $3.20 per share, in fiscal year 2007. The company’s 2007 full year net income includes net gains of approximately $75 million on the sale of properties. Revenues from continuing operations in 2008 totaled $290.0 million, up from $258.5 million in 2007. FFO for the year totaled $119.0 million, or $3.42 per share, compared to $110.6 million,

or $3.18 per share, in 2007. The company’s 2008 full year net income and FFO include approximately $7.2 million of one-time fees and non-cash rental revenue related to two lease terminations, and the company’s 2007 full year results include approximately $3.5 million of one-time fees and non-cash rental revenues related to two lease terminations. All per-share amounts in this report are presented on a diluted basis.

“KRC delivered a solid performance in 2008, in particular achieving excellent leasing results despite an increasingly difficult economic environment,” said John B. Kilroy, Jr., the company’s president and chief executive officer. “This year, which promises to be even more challenging, our top priorities remain a strong balance sheet and an effective leasing program within our stabilized portfolio and our recently delivered development properties.”

During 2008, KRC delivered just over 560,000 square feet of new and newly redeveloped office space to its stabilized portfolio. These six buildings, contained in five individual projects, represent an aggregate estimated investment of $193 million and are currently 75% leased.

The company also completed construction of its one remaining development project during the fourth quarter, a 51,000 square-foot medical office property located in the Sorrento Mesa submarket of coastal San Diego County. The property represents a total estimated investment of $24 million, of which $16 million has been spent to date, and is currently in lease-up.

KRC management will discuss earnings guidance for fiscal 2009 during the company’s January 27, 2009 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 (888) 679-8035, reservation #70011749. A replay of the conference call will be available via phone through February 10, 2009 at (888) 286-8010, reservation #64084481, 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

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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 over 60 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of Los Angeles, Orange and San Diego counties. At December 31, 2008, the company owned 8.7 million rentable square feet of commercial office space and 3.7 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, 2008		Three Months Ended December 31, 2007		Year Ended December 31, 2008			Year Ended December 31, 2007
Revenues from continuing operations	$	72,437	$	69,741	$	289,968		$	258,472
Revenues including discontinued operations	$	72,437	$	72,155	$	290,167		$	268,784
Net income available for common stockholders (1)	$	5,892	$	65,612	$	34,513		$	104,214
Weighted average common shares outstanding - basic		32,719		32,426		32,467			32,380
Weighted average common shares outstanding - diluted		33,077		32,633		32,670			32,527
Net income per share of common stock - basic	$	0.18	$	2.02	$	1.06		$	3.22
Net income per share of common stock - diluted	$	0.18	$	2.01	$	1.06		$	3.20
Funds From Operations (2), (3)	$	27,182	$	29,672	$	118,952		$	110,584
Weighted average common shares/units outstanding - basic (4)		34,472		34,622		34,532			34,616
Weighted average common shares/units outstanding - diluted (4)		34,831		34,829		34,735			34,762
Funds From Operations per common share/unit - basic (4)	$	0.79	$	0.86	$	3.44		$	3.19
Funds From Operations per common share/unit - diluted (4)	$	0.78	$	0.85	$	3.42		$	3.18
Common shares outstanding at end of period						33,086			32,766
Common partnership units outstanding at end of period						1,754			2,189
Total common shares and units outstanding at end of period						34,840			34,955
					December 31, 2008			December 31, 2007
Stabilized portfolio occupancy rates:
Office						86.2	%		93.7	%
Industrial						96.3	%		94.7	%
Weighted average total						89.2	%		94.0	%
Los Angeles						92.6	%		96.4	%
Orange County						94.1	%		94.8	%
San Diego						83.1	%		91.4	%
Other						94.2	%		99.6	%
Weighted average total						89.2	%		94.0	%
Total square feet of stabilized properties owned at end of period:
Office						8,650			8,089
Industrial						3,719			3,870
Total						12,369			11,959

(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)

	December 31, 2008			December 31, 2007
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	336,874		$	324,779
Buildings and improvements		1,888,274			1,719,700
Undeveloped land and construction in progress		246,865			324,077
Total real estate held for investment		2,472,013			2,368,556
Accumulated depreciation and amortization		(532,769	)		(463,932	)
Total real estate assets, net		1,939,244			1,904,624
Cash and cash equivalents	$	9,553		$	11,732
Restricted cash		672			546
Marketable securities		1,888			707
Current receivables, net		5,753			4,891
Deferred rent receivables, net		67,144			67,283
Notes receivable		10,824			10,970
Deferred leasing costs and acquisition related intangibles, net		53,539			54,418
Deferred financing costs, net		6,131			8,492
Prepaid expenses and other assets, net		4,835			5,057
TOTAL ASSETS	$	2,099,583		$	2,068,720
LIABILITIES & STOCKHOLDERS’ EQUITY
LIABILITIES:
Secured debt	$	316,456		$	395,912
Exchangeable senior notes, net		457,010			456,090
Unsecured senior notes		144,000			144,000
Unsecured line of credit		252,000			111,000
Accounts payable, accrued expenses and other liabilities		55,066			58,249
Accrued distributions		21,421			20,610
Deferred revenue and acquisition related liabilities		76,219			59,187
Rents received in advance and tenant security deposits		19,340			18,433
Total liabilities		1,341,512			1,263,481
MINORITY INTERESTS:
7.45% Series A Cumulative Redeemable Preferred units of the Operating Partnership		73,638			73,638
Common units of the Operating Partnership		28,368			38,309
Total minority interests		102,006			111,947
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		331			328
Additional paid-in capital		663,471			658,894
Distributions in excess of earnings		(129,319	)		(87,512	)
Total stockholders’ equity		656,065			693,292
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	2,099,583		$	2,068,720

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KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended December 31, 2008			Three Months Ended December 31, 2007			Year Ended December 31, 2008			Year Ended December 31, 2007
REVENUES:
Rental income	$	63,747		$	62,125		$	252,084		$	229,672
Tenant reimbursements		7,887			7,320			31,035			25,322
Other property income		803			296			6,849			3,478
Total revenues		72,437			69,741			289,968			258,472
EXPENSES:
Property expenses		12,690			11,255			48,875			43,306
Real estate taxes		5,959			5,137			22,108			19,539
Provision for bad debts		383			783			4,051			473
Ground leases		391			392			1,617			1,582
General and administrative expenses		10,210			9,353			38,260			36,580
Interest expense		11,478			10,765			40,366			37,502
Depreciation and amortization		21,212			20,259			83,275			72,815
Total expenses		62,323			57,944			238,552			211,797
OTHER INCOME AND EXPENSE:
Interest and other investment income		(285	)		311			(93	)		1,606
Total other income		(285	)		311			(93	)		1,606
Income from continuing operations before minority interests		9,829			12,108			51,323			48,281
Minority interests:
Distributions on Cumulative Redeemable Preferred units		(1,397	)		(1,397	)		(5,588	)		(5,588	)
Minority interest in earnings of Operating Partnership attributable to continuing operations		(266	)		(524	)		(2,148	)		(2,129	)
Total minority interests		(1,663	)		(1,921	)		(7,736	)		(7,717	)
Income from continuing operations		8,166			10,187			43,587			40,564
Discontinued operations:
Revenues from discontinued operations		—			2,414			199			10,312
Expenses from discontinued operations		135			(1,648	)		135			(6,521	)
Net gain on dispositions of discontinued operations		—			61,031			234			74,505
Minority interest in earnings of Operating Partnership attributable to discontinued operations		(7	)		(3,970	)		(34	)		(5,038	)
Total income from discontinued operations		128			57,827			534			73,258
Net income		8,294			68,014			44,121			113,822
Preferred dividends		(2,402	)		(2,402	)		(9,608	)		(9,608	)
Net income available for common stockholders	$	5,892		$	65,612		$	34,513		$	104,214
Weighted average shares outstanding - basic		32,719			32,426			32,467			32,380
Weighted average shares outstanding - diluted		33,077			32,633			32,670			32,527
Net income per common share - basic	$	0.18		$	2.02		$	1.06		$	3.22
Net income per common share - diluted	$	0.18		$	2.01		$	1.06		$	3.20

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KILROY REALTY CORPORATION FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended December 31, 2008		Three Months Ended December 31, 2007			Year Ended December 31, 2008			Year Ended December 31, 2007
Net income available for common stockholders	$	5,892	$	65,612		$	34,513		$	104,214
Adjustments:
Minority interest in earnings of Operating Partnership		273		4,494			2,182			7,167
Depreciation and amortization of real estate assets		21,017		20,597			82,491			73,708
Net gain on dispositions of discontinued operations		—		(61,031	)		(234	)		(74,505	)
Funds From Operations (1), (2)	$	27,182	$	29,672		$	118,952		$	110,584
Weighted average common shares/units outstanding - basic		34,472		34,622			34,532			34,616
Weighted average common shares/units outstanding - diluted		34,831		34,829			34,735			34,762
Funds From Operations per common share/unit - basic	$	0.79	$	0.86		$	3.44		$	3.19
Funds From Operations per common share/unit - diluted	$	0.78	$	0.85		$	3.42		$	3.18

(1) The company calculates FFO in accordance with the White Paper on FFO approved by the Board of Governors of NAREIT. The White Paper defines FFO as net income or loss calculated 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.

Management believes that FFO is a useful supplemental measure of the company’s operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of the company’s activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of the company’s operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, the company’s FFO may not be comparable to all other REITs.

Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting to be insufficient by themselves. Because FFO excludes depreciation and amortization of real estate assets, management believes that FFO along with the required GAAP presentations provides a more complete measurement of the company’s performance relative to its competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide.

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 and could materially impact the company’s results from operations.

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

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