{"url_path":"/sec/krc/10-k/2026/item-16","section_key":"item-16","section_title":"Item 16 FORM 10-K SUMMARY","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-11","source_url":"https://www.sec.gov/Archives/edgar/data/1025996/0001628280-26-007051-index.html","accession_number":"0001628280-26-007051","cik":"0001025996","ticker":"KRC","issuer_name":"KILROY REALTY CORP","edgar_url":"https://www.sec.gov/Archives/edgar/data/1025996/0001628280-26-007051-index.html","primary_entity_key":"0001025996","primary_entity_name":"KILROY REALTY CORP"},"word_count":27001,"has_tables":true,"body_markdown":"ITEM 16.    FORM 10-K SUMMARY\n\nNone.\n\n90\n\nSIGNATURES\n\nPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Kilroy Realty Corporation has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on February 10, 2026.\n\n KILROY REALTY CORPORATION\n\n   \n\nBy/s/ Chandni Jalan\n\nChandni Jalan\n\nSenior Vice President, Chief Accounting Officer\n\n91\n\nPOWER OF ATTORNEY\n\nKNOW ALL PERSONS BY THESE PRESENTS, that we, the undersigned directors and officers of Kilroy Realty Corporation, do hereby severally constitute and appoint Angela M. Aman, Jeffrey R. Kuehling, Heidi R. Roth, Lauren N. Stadler, and Chandni Jalan, and each of them, as our true and lawful attorneys-in-fact and agents, each with full powers of substitution, to do any and all acts and things in our name and behalf in our capacities as directors and officers and to execute any and all instruments for us and in our names in the capacities indicated below, which said attorneys-in-fact and agents, or any of them, may deem necessary or advisable to enable Kilroy Realty Corporation to comply with the Securities Exchange Act of 1934, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission, in connection with this Annual Report on Form 10-K, including specifically, but without limitation, the power and authority to sign for us or any of us, in our names in the capacities indicated below, any and all amendments hereto; and we do each hereby ratify and confirm all that said attorneys-in-fact and agents or their substitutes, or any one of them, shall do or cause to be done by virtue hereof.\n\nPursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.\n\nNameTitleDate\n\n/s/ Angela M. Aman\n\nDirector, Chief Executive Officer (Principal Executive Officer)\nFebruary 10, 2026\n\nAngela M. Aman\n\n/s/ Jeffrey R. Kuehling\nExecutive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)February 10, 2026\n\nJeffrey R. Kuehling\n\n/s/ Chandni JalanSenior Vice President, Chief Accounting Officer (Principal Accounting Officer)February 10, 2026\n\nChandni Jalan\n\n/s/ Edward F. Brennan, PhD\nChair of the Board\nFebruary 10, 2026\n\nEdward F. Brennan, PhD\n\n/s/ Daryl J. Carter\nDirectorFebruary 10, 2026\n\nDaryl J. Carter\n\n/s/ Jolie A. Hunt\nDirectorFebruary 10, 2026\n\nJolie A. Hunt\n\n/s/ Louisa G. Ritter\nDirectorFebruary 10, 2026\n\nLouisa G. Ritter\n\n/s/ Gary R. Stevenson\nDirectorFebruary 10, 2026\n\nGary R. Stevenson\n\n/s/ Peter B. Stoneberg\nDirectorFebruary 10, 2026\n\nPeter B. Stoneberg\n\n92\n\nSIGNATURES\n\nPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Kilroy Realty, L.P. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on February 10, 2026.\n\n KILROY REALTY, L.P.\n\n   \n\nBy/s/ Chandni Jalan\n\nChandni Jalan\n\nSenior Vice President, Chief Accounting Officer\n\n93\n\nPOWER OF ATTORNEY\n\nKNOW ALL PERSONS BY THESE PRESENTS, that we, the undersigned directors and officers of Kilroy Realty Corporation, as sole general partner and on behalf of Kilroy Realty, L.P., do hereby severally constitute and appoint Angela M. Aman, Jeffrey R. Kuehling, Heidi R. Roth, Lauren N. Stadler, and Chandni Jalan, and each of them, as our true and lawful attorneys-in-fact and agents, each with full powers of substitution, to do any and all acts and things in our name and behalf in our capacities as directors and officers and to execute any and all instruments for us and in our names in the capacities indicated below, which said attorneys-in-fact and agents, or any of them, may deem necessary or advisable to enable Kilroy Realty Corporation, as sole general partner and on behalf of Kilroy Realty, L.P., to comply with the Securities Exchange Act of 1934, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission, in connection with this Annual Report on Form 10-K, including specifically, but without limitation, the power and authority to sign for us or any of us, in our names in the capacities indicated below, any and all amendments hereto; and we do each hereby ratify and confirm all that said attorneys-in-fact and agents or their substitutes, or any one of them, shall do or cause to be done by virtue hereof.\n\nPursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.\n\nNameTitleDate\n\n/s/ Angela M. Aman\n\nDirector, Chief Executive Officer (Principal Executive Officer)\nFebruary 10, 2026\n\nAngela M. Aman\n\n/s/ Jeffrey R. Kuehling\nExecutive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)February 10, 2026\n\nJeffrey R. Kuehling\n\n/s/ Chandni JalanSenior Vice President, Chief Accounting Officer (Principal Accounting Officer)February 10, 2026\n\nChandni Jalan\n\n/s/ Edward F. Brennan, PhDChair of the BoardFebruary 10, 2026\n\nEdward F. Brennan, PhD\n\n/s/ Daryl J. Carter\nDirectorFebruary 10, 2026\n\nDaryl J. Carter\n\n/s/ Jolie A. Hunt\nDirectorFebruary 10, 2026\n\nJolie A. Hunt\n\n/s/ Louisa G. Ritter\nDirectorFebruary 10, 2026\n\nLouisa G. Ritter\n\n/s/ Gary R. Stevenson\nDirectorFebruary 10, 2026\n\nGary R. Stevenson\n\n/s/ Peter B. Stoneberg\nDirectorFebruary 10, 2026\n\nPeter B. Stoneberg\n\n94\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nINDEX TO CONSOLIDATED FINANCIAL STATEMENTS\n\nAND FINANCIAL STATEMENT SCHEDULES\n\n Page\n\nFINANCIAL STATEMENTS OF KILROY REALTY CORPORATION:\n\n[Report of Independent Registered Public Accounting Firm (PCAOB ID No.](#i179fc8e8cd9649dbaf3d0d5446500b67_202)34[)](#i179fc8e8cd9649dbaf3d0d5446500b67_202)\n\nF - [2](#i179fc8e8cd9649dbaf3d0d5446500b67_202)\n\n[Consolidated Balance Sheets as of December 31,](#i179fc8e8cd9649dbaf3d0d5446500b67_205)[2025](#i179fc8e8cd9649dbaf3d0d5446500b67_205)[and](#i179fc8e8cd9649dbaf3d0d5446500b67_205)[2024](#i179fc8e8cd9649dbaf3d0d5446500b67_205)\n\nF - [4](#i179fc8e8cd9649dbaf3d0d5446500b67_205)\n\n[Consolidated Statements of Operations for the](#i179fc8e8cd9649dbaf3d0d5446500b67_211)[y](#i179fc8e8cd9649dbaf3d0d5446500b67_211)[ears ended December 31,](#i179fc8e8cd9649dbaf3d0d5446500b67_211)[2025](#i179fc8e8cd9649dbaf3d0d5446500b67_211)[,](#i179fc8e8cd9649dbaf3d0d5446500b67_211)[2024](#i179fc8e8cd9649dbaf3d0d5446500b67_211)[, and](#i179fc8e8cd9649dbaf3d0d5446500b67_211)[2023](#i179fc8e8cd9649dbaf3d0d5446500b67_211)\n\nF - [5](#i179fc8e8cd9649dbaf3d0d5446500b67_211)\n\n[Consolidated Statements of Equity for the](#i179fc8e8cd9649dbaf3d0d5446500b67_214)[y](#i179fc8e8cd9649dbaf3d0d5446500b67_214)[ears ended December 31,](#i179fc8e8cd9649dbaf3d0d5446500b67_214)[2025, 2024](#i179fc8e8cd9649dbaf3d0d5446500b67_214)[, and](#i179fc8e8cd9649dbaf3d0d5446500b67_214)[2023](#i179fc8e8cd9649dbaf3d0d5446500b67_214)\n\nF - [6](#i179fc8e8cd9649dbaf3d0d5446500b67_214)\n\n[Consolidated Statements of Cash Flows for the](#i179fc8e8cd9649dbaf3d0d5446500b67_220)[y](#i179fc8e8cd9649dbaf3d0d5446500b67_220)[ears ended December 31,](#i179fc8e8cd9649dbaf3d0d5446500b67_220)[2025, 2024](#i179fc8e8cd9649dbaf3d0d5446500b67_220)[, and](#i179fc8e8cd9649dbaf3d0d5446500b67_220)[2023](#i179fc8e8cd9649dbaf3d0d5446500b67_220)\n\nF - [7](#i179fc8e8cd9649dbaf3d0d5446500b67_220)\n\nFINANCIAL STATEMENTS OF KILROY REALTY, L.P.:\n\n[Report of Independent Registered Public Accounting Firm (PCAOB ID No.](#i179fc8e8cd9649dbaf3d0d5446500b67_223)34[)](#i179fc8e8cd9649dbaf3d0d5446500b67_223)\n\nF - [8](#i179fc8e8cd9649dbaf3d0d5446500b67_223)\n\n[Consolidated Balance Sheets as of December 31,](#i179fc8e8cd9649dbaf3d0d5446500b67_226)[2025](#i179fc8e8cd9649dbaf3d0d5446500b67_226)[and](#i179fc8e8cd9649dbaf3d0d5446500b67_226)[2024](#i179fc8e8cd9649dbaf3d0d5446500b67_226)\n\nF - [10](#i179fc8e8cd9649dbaf3d0d5446500b67_226)\n\n[Consolidated Statements of Operations for the](#i179fc8e8cd9649dbaf3d0d5446500b67_232)[y](#i179fc8e8cd9649dbaf3d0d5446500b67_232)[ears ended December 31,](#i179fc8e8cd9649dbaf3d0d5446500b67_232)[2025, 2024](#i179fc8e8cd9649dbaf3d0d5446500b67_232)[, and](#i179fc8e8cd9649dbaf3d0d5446500b67_232)[2023](#i179fc8e8cd9649dbaf3d0d5446500b67_232)\n\nF - [11](#i179fc8e8cd9649dbaf3d0d5446500b67_232)\n\n[Consolidated Statements of Capital for the](#i179fc8e8cd9649dbaf3d0d5446500b67_235)[y](#i179fc8e8cd9649dbaf3d0d5446500b67_235)[ears ended December 31,](#i179fc8e8cd9649dbaf3d0d5446500b67_235)[2025, 2024](#i179fc8e8cd9649dbaf3d0d5446500b67_235)[, and](#i179fc8e8cd9649dbaf3d0d5446500b67_235)[2023](#i179fc8e8cd9649dbaf3d0d5446500b67_235)\n\nF - [12](#i179fc8e8cd9649dbaf3d0d5446500b67_235)\n\n[Consolidated Statements of Cash Flows for the](#i179fc8e8cd9649dbaf3d0d5446500b67_241)[y](#i179fc8e8cd9649dbaf3d0d5446500b67_241)[ears ended December 31,](#i179fc8e8cd9649dbaf3d0d5446500b67_241)[2025, 2024](#i179fc8e8cd9649dbaf3d0d5446500b67_241)[, and](#i179fc8e8cd9649dbaf3d0d5446500b67_241)[2023](#i179fc8e8cd9649dbaf3d0d5446500b67_241)\n\nF - [13](#i179fc8e8cd9649dbaf3d0d5446500b67_241)\n\n[Notes to Consolidated Financial Statements for Kilroy Realty Corporation and Kilroy Realty, L.P.](#i179fc8e8cd9649dbaf3d0d5446500b67_244)\n\nF - [14](#i179fc8e8cd9649dbaf3d0d5446500b67_244)\n\n[Schedule II – Valuation and Qualifying Accounts for Kilroy Realty Corporation and Kilroy Realty, L.P.](#i179fc8e8cd9649dbaf3d0d5446500b67_358)\n\nF - [54](#i179fc8e8cd9649dbaf3d0d5446500b67_358)\n\n[Schedule III – Real Estate and Accumulated Depreciation for Kilroy Realty Corporation and](#i179fc8e8cd9649dbaf3d0d5446500b67_361)\n\n[   Kilroy Realty, L.P.](#i179fc8e8cd9649dbaf3d0d5446500b67_361)\n\nF - [55](#i179fc8e8cd9649dbaf3d0d5446500b67_361)\n\nF - 1\n\nREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n\nTo the Stockholders and the Board of Directors of Kilroy Realty Corporation\n\nOpinion on the Financial Statements\n\nWe have audited the accompanying consolidated balance sheets of Kilroy Realty Corporation and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.\n\nWe have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 10, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting.\n\nBasis for Opinion\n\nThese financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\nCritical Audit Matter\n\nThe critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\nReal Estate Assets — Evaluation of asset impairment — Refer to Note 2 to the financial statements\n\nCritical Audit Matter Description\n\nThe Company evaluates real estate assets, including land held for future development, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a given asset may not be recoverable. If any impairment indicators are present for a specific real estate asset, the Company then compares the asset’s net carrying amount to its estimated undiscounted future cash flow over the anticipated holding period. If the carrying amount exceeds these cash flows, the Company calculates an impairment loss by comparing the carrying amount to estimated fair value, using discounted cash flow models or third-party appraisals. An impairment loss recognized sets a new cost basis for the asset, which is then depreciated over its remaining useful life. Assets held for sale are carried at the lower of carrying value or fair value less costs to sell, and depreciation ceases.\n\nFor the year ended December 31, 2025, the Company recognized an impairment charge of approximately $16.3 million on one real estate asset disposed of during the year.\n\nF - 2\n\nGiven the Company’s evaluation of the recoverability of real estate assets requires management to make significant estimates and assumptions related to estimated hold periods, rental rates, and capitalization rates, performing audit procedures to evaluate the reasonableness of management’s undiscounted future cash flow analysis, including an assessment of expected remaining holding period, required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.\n\nHow the Critical Audit Matter Was Addressed in the Audit\n\nOur audit procedures to evaluate management’s estimated holding period of an asset and to evaluate the assumptions used in undiscounted cash flows included the following, among others:\n\n•We tested the effectiveness of controls over management’s evaluation of impairment of real estate assets, including controls over identification of possible events or changes in estimated holding period of an asset, estimated rental rates, and estimated capitalization rates used in future undiscounted cash flows.\n\n•We evaluated the reasonableness of management’s conclusions regarding the Company’s estimated hold period by:\n\n–Discussing with executive management the Company’s intent regarding sale or holding of specific real estate assets.\n\n–Inspecting investment committee meeting materials and minutes to identify any evidence that may contradict management’s assertion regarding estimated holding periods for specific assets.\n\n–Evaluating the consistency of the assumptions used with audit evidence obtained in other audit areas and with investment committee materials.\n\n•With the assistance of our fair value specialists, where applicable, we evaluated the reasonableness of management’s conclusions regarding other assumptions used in estimated undiscounted cash flows by:\n\n–Testing the source information underlying the determination of the rental rates and capitalization rates, and developing a range of independent estimates based on external market sources and comparing our estimates to the assumptions utilized by management, and testing the mathematical accuracy of the calculations.\n\n/s/ Deloitte & Touche LLP\n\nLos Angeles, California\n\nFebruary 10, 2026\n\nWe have served as the Company’s auditor since 1995.\n\nF - 3\n\nKILROY REALTY CORPORATION\n\nCONSOLIDATED BALANCE SHEETS\n\n(in thousands, except share data)\n\nDecember 31, 2025December 31, 2024\n\nASSETS\n\n Real estate assets:\n\nLand\n$1,641,913 $1,750,820 \n\nBuildings and improvements8,505,486 8,598,751 \n\nUndeveloped land and construction in progress2,387,742 2,309,624 \n\nTotal real estate assets held for investment12,535,141 12,659,195 \n\nAccumulated depreciation and amortization(2,843,811)(2,824,616)\n\nTotal real estate assets held for investment, net9,691,330 9,834,579 \n\nReal estate and other assets held for sale, net\n115,155 — \n\nCash and cash equivalents\n179,316 165,690 \n\nMarketable securities\n30,807 27,965 \n\nCurrent receivables (net of allowances of $244 and $314 as of December 31, 2025 and 2024, respectively)\n12,765 11,033 \n\nDeferred rent receivables, net\n424,794 451,996 \n\nDeferred leasing costs and acquisition-related intangible assets, net\n278,232 225,937 \n\nRight of use ground lease assets, net\n128,116 129,222 \n\nPrepaid expenses and other assets, net\n54,561 51,935 \n\nTotal assets\n$10,915,076 $10,898,357 \n\nLIABILITIES AND EQUITY\n\nLiabilities:\n\nSecured debt, net\n$592,685 $598,199 \n\nUnsecured debt, net\n3,996,774 3,999,566 \n\nAccounts payable, accrued expenses, and other liabilities\n288,963 285,011 \n\nGround lease liabilities\n127,628 128,422 \n\nAccrued dividends and distributions\n65,009 64,850 \n\nDeferred revenue and acquisition-related intangible liabilities, net\n125,628 142,437 \n\nRents received in advance and tenant security deposits75,701 71,003 \n\nLiabilities related to real estate assets held for sale\n4,945 — \n\nTotal liabilities5,277,333 5,289,488 \n\nCommitments and contingencies (Note 17)\n\nEquity:\n\nStockholders’ Equity:\n\nCommon stock, $.01 par value, 280,000,000 shares authorized, 118,372,451 and\n\n118,046,674 shares issued and outstanding\n1,184 1,181 \n\nAdditional paid-in capital5,230,747 5,209,653 \n\nRetained earnings188,876 171,212 \n\nTotal stockholders’ equity5,420,807 5,382,046 \n\nNoncontrolling Interests:\n\nCommon units of the Operating Partnership51,911 52,472 \n\nConsolidated property partnerships\n165,025 174,351 \n\nTotal noncontrolling interests\n216,936 226,823 \n\nTotal equity5,637,743 5,608,869 \n\nTotal liabilities and equity\n$10,915,076 $10,898,357 \n\nSee accompanying notes to consolidated financial statements.\n\nF - 4\n\nKILROY REALTY CORPORATION\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n(in thousands, except share and per share data)\n\nYear Ended December 31,\n\n202520242023\n\nRevenues:\n\nRental income\n$1,093,587 $1,118,115 $1,117,737 \n\nOther property income19,080 17,514 11,957 \n\nTotal revenues1,112,667 1,135,629 1,129,694 \n\nExpenses:\n\nProperty expenses 243,726 243,441 228,964 \n\nReal estate taxes 107,564 108,951 105,868 \n\nGround leases\n12,048 11,715 9,732 \n\nGeneral and administrative expenses\n73,108 71,074 94,264 \n\nLeasing costs 10,352 8,764 6,506 \n\nDepreciation and amortization\n354,854 356,182 355,278 \n\nTotal expenses801,652 800,127 800,612 \n\nOther Income (Expenses):\n\nInterest income\n6,970 37,752 22,592 \n\nInterest expense\n(126,292)(145,287)(114,216)\n\nOther income (expense)\n168 (992)830 \n\nGains on sales of depreciable operating properties\n127,038 — — \n\nImpairment of real estate assets\n(16,259)— — \n\nGain on sale of long-lived assets\n— 5,979 — \n\nTotal other expenses\n(8,375)(102,548)(90,794)\n\nNet income\n302,640 232,954 238,288 \n\nNet income attributable to noncontrolling common units of the Operating Partnership\n(2,682)(2,062)(2,083)\n\nNet income attributable to noncontrolling interests in consolidated property partnerships\n(23,837)(19,923)(23,964)\n\nTotal net income attributable to noncontrolling interests\n(26,519)(21,985)(26,047)\n\nNet income available to common stockholders\n$276,121 $210,969 $212,241 \n\nNet income available to common stockholders per share – basic\n$2.33 $1.78 $1.80 \n\nNet income available to common stockholders per share – diluted\n$2.32 $1.77 $1.80 \n\nWeighted average shares of common stock outstanding – basic\n118,278,990 117,649,111 117,160,173 \n\nWeighted average shares of common stock outstanding – diluted\n118,832,035 118,156,987 117,506,255 \n\nSee accompanying notes to consolidated financial statements.\n\nF - 5\n\nKILROY REALTY CORPORATION\n\nCONSOLIDATED STATEMENTS OF EQUITY\n\n(in thousands, except share and per share/unit data)\n\nCommon StockTotal\nStock-\nholders’\nEquityNoncontrolling \nInterestsTotal\nEquity\n\nNumber \nof\nSharesCommon\nStockAdditional\nPaid-in\nCapitalRetained\nEarnings (Distributions\nin Excess of\nEarnings)\n\nBalance as of December 31, 2022\n116,878,031 $1,169 $5,170,760 $265,118 $5,437,047 $237,914 $5,674,961 \n\nNet income212,241 212,241 26,047 238,288 \n\nIssuance of share-based compensation awards3,110 3,110 3,110 \n\nNon-cash amortization of share-based compensation43,721 43,721 43,721 \n\nNet settlement of restricted stock units for shares of common stock\n361,527 4 (11,599)(11,595)(11,595)\n\nDistributions to noncontrolling interests in consolidated property partnerships— (30,097)(30,097)\n\nAdjustment for noncontrolling interest in the Operating Partnership(153)(153)153 — \n\nDividends declared per share of common stock and common unit $2.16 per share/unit)\n(256,210)(256,210)(2,485)(258,695)\n\nBalance as of December 31, 2023\n117,239,558 1,173 5,205,839 221,149 5,428,161 231,532 5,659,693 \n\nNet income210,969 210,969 21,985 232,954 \n\nIssuance of share-based compensation awards6,675 6,675 6,675 \n\nNon-cash amortization of share-based compensation24,402 24,402 24,402 \n\nNet settlement of restricted stock units for shares of common stock\n807,116 8 (27,644)(27,636)(27,636)\n\nDistributions to noncontrolling interests in consolidated property partnerships— (23,829)(23,829)\n\nAdjustment for noncontrolling interest in the Operating Partnership381 381 (381)— \n\nDividends declared per share of common stock and common unit ($2.16 per share/unit)\n(260,906)(260,906)(2,484)(263,390)\n\nBalance as of December 31, 2024\n118,046,674 1,181 5,209,653 171,212 5,382,046 226,823 5,608,869 \n\nNet income276,121 276,121 26,519 302,640 \n\nIssuance of share-based compensation awards\n2,913 2,913 2,913 \n\nNon-cash amortization of share-based compensation\n23,968 23,968 23,968 \n\nNet settlement of restricted stock units for shares of common stock\n308,765 3 (6,554)(6,551)(6,551)\n\nExchange of common units of the Operating Partnership\n17,012 — 714 714 (714)— \n\nDistributions to noncontrolling interests in consolidated property partnerships— (33,163)(33,163)\n\nAdjustment for noncontrolling interest in the Operating Partnership53 53 (53)— \n\nDividends declared per share of common stock and common unit ($2.16 per share/unit)\n(258,457)(258,457)(2,476)(260,933)\n\nBalance as of December 31, 2025\n118,372,451 $1,184 $5,230,747 $188,876 $5,420,807 $216,936 $5,637,743 \n\nSee accompanying notes to consolidated financial statements.\n\nF - 6\n\nKILROY REALTY CORPORATION\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(in thousands)\n\nYear Ended December 31,\n\n202520242023\n\nCash flows from operating activities:\n\nNet income$302,640 $232,954 $238,288 \n\nAdjustments to reconcile net income to net cash provided by operating activities:\n\nDepreciation and amortization of real estate assets and leasing costs349,271 349,828 348,064 \n\nDepreciation of non-real estate furniture, fixtures, and equipment5,583 6,354 7,214 \n\nRevenues deemed uncollectible\n1,518 2,416 11,553 \n\nNon-cash amortization of deferred revenue related to tenant-funded tenant improvements\n(14,644)(17,605)(19,181)\n\nStraight-line rents, net\n11,628 3,160 (19,262)\n\nNon-cash amortization of net below-market rents\n(3,079)(3,521)(6,648)\n\nNon-cash amortization of deferred financing costs and debt discounts\n4,777 6,893 5,200 \n\nNon-cash amortization of share-based compensation awards\n19,090 17,714 36,858 \n\nAmortization of right of use ground lease assets1,106 1,066 1,024 \n\nGains on sales of depreciable operating properties\n(127,038)— — \n\nImpairment of real estate assets\n16,259 — — \n\nGain on sale of long-lived assets\n— (5,979)— \n\nNet change in other operating assets(11,326)1,894 2,322 \n\nNet change in other operating liabilities10,528 (54,025)(2,843)\n\nNet cash provided by operating activities\n566,313 541,149 602,589 \n\nCash flows from investing activities:\n\nExpenditures for development and redevelopment properties and undeveloped land(174,687)(365,521)(446,426)\n\nExpenditures for operating properties and other capital assets(116,025)(100,303)(97,393)\n\nExpenditures for acquisitions of operating properties\n(397,251)(35,155)— \n\nNet proceeds received from dispositions of real estate assets\n447,938 — — \n\nNet proceeds received from disposition of long-lived assets\n— 19,354 — \n\nMaturity (Purchases) of certificates of deposit\n— 256,581 (256,581)\n\nNet cash used in investing activities\n(240,025)(225,044)(800,400)\n\nCash flows from financing activities:\n\nDistributions to noncontrolling interests in consolidated property partnerships(33,163)(23,829)(30,097)\n\nDividends and distributions paid to common stockholders and common unitholders(257,861)(256,306)(255,430)\n\nTaxes paid upon net share settlement of restricted share units\n(6,551)(27,636)(11,595)\n\nFinancing costs\n(4,805)(18,605)(10,924)\n\nPrincipal payments and repayments of secured debt\n(6,246)(6,006)(5,775)\n\nProceeds from the issuance of unsecured debt\n395,964 395,516 — \n\nProceeds from the issuance of secured debt\n— — 375,000 \n\nRepayments of unsecured debt\n(400,000)(723,712)— \n\nBorrowings on unsecured debt\n— — 320,000 \n\nRepurchases of unsecured debt\n— — (20,584)\n\nBorrowings on unsecured revolving credit facility65,000 — — \n\nRepayments on unsecured revolving credit facility(65,000)— — \n\nNet cash (used in) provided by financing activities(312,662)(660,578)360,595 \n\nNet increase (decrease) in cash and cash equivalents and restricted cash\n13,626 (344,473)162,784 \n\nCash and cash equivalents and restricted cash, beginning of year165,690 510,163 347,379 \n\nCash and cash equivalents and restricted cash, end of year$179,316 $165,690 $510,163 \n\nSee accompanying notes to consolidated financial statements.\n\nF - 7\n\nREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n\nTo the Partners of Kilroy Realty, L.P.\n\nOpinion on the Financial Statements\n\nWe have audited the accompanying consolidated balance sheets of Kilroy Realty, L.P. and subsidiaries (the “Operating Partnership”) as of December 31, 2025 and 2024, the related consolidated statements of operations, capital, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Operating Partnership as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.\n\nWe have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Operating Partnership’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 10, 2026, expressed an unqualified opinion on the Operating Partnership’s internal control over financial reporting.\n\nBasis for Opinion\n\nThese financial statements are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on the Operating Partnership’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\nCritical Audit Matter\n\nThe critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\nReal Estate Assets — Evaluation of asset impairment — Refer to Note 2 to the financial statements\n\nCritical Audit Matter Description\n\nThe Operating Partnership evaluates real estate assets, including land held for future development, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a given asset may not be recoverable. If any impairment indicators are present for a specific real estate asset, the Operating Partnership then compares the asset’s net carrying amount to its estimated undiscounted future cash flow over the anticipated holding period. If the carrying amount exceeds these cash flows, the Operating Partnership calculates an impairment loss by comparing the carrying amount to estimated fair value, using discounted cash flow models or third-party appraisals. An impairment loss recognized sets a new cost basis for the asset, which is then depreciated of over its remaining useful life. Assets held for sale are carried at the lower of carrying value or fair value less costs to sell, and depreciation ceases.\n\nFor the year ended December 31, 2025, the Operating Partnership recognized an impairment charge of\n\nF - 8\n\napproximately $16.3 million on one real estate asset disposed of during the year.\n\nGiven the Operating Partnership’s evaluation of the recoverability of real estate assets requires management to make significant estimates and assumptions related to estimated hold periods, rental rates, and capitalization rates, performing audit procedures to evaluate the reasonableness of management’s undiscounted future cash flow analysis, including an assessment of expected remaining holding period, required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.\n\nHow the Critical Audit Matter Was Addressed in the Audit\n\nOur audit procedures to evaluate management’s estimated holding period of an asset and to evaluate the assumptions used in undiscounted cash flows included the following, among others:\n\n•We tested the effectiveness of controls over management’s evaluation of impairment of real estate assets, including controls over identification of possible events or changes in estimated holding period of an asset, estimated rental rates, and estimated capitalization rates used in future undiscounted cash flows.\n\n•We evaluated the reasonableness of management’s conclusions regarding the Operating Partnership’s estimated hold period by:\n\n–Discussing with executive management the Operating Partnership’s intent regarding sale or holding of specific real estate assets.\n\n–Inspecting investment committee meeting materials and minutes to identify any evidence that may contradict management’s assertion regarding estimated holding periods for specific assets.\n\n–Evaluating the consistency of the assumptions used with audit evidence obtained in other audit areas and with investment committee materials.\n\n•With the assistance of our fair value specialists, where applicable, we evaluated the reasonableness of management’s conclusions regarding other assumptions used in estimated undiscounted cash flows by:\n\n–Testing the source information underlying the determination of the rental rates and capitalization rates, and developing a range of independent estimates based on external market sources and comparing our estimates to the assumptions utilized by management, and testing the mathematical accuracy of the calculations.\n\n/s/ Deloitte & Touche LLP\n\nLos Angeles, California\n\nFebruary 10, 2026\n\nWe have served as the Operating Partnership’s auditor since 2010.\n\nF - 9\n\nKILROY REALTY, L.P.\n\nCONSOLIDATED BALANCE SHEETS\n\n(in thousands, except unit data)\n\nDecember 31, 2025December 31, 2024\n\nASSETS\n\nReal estate assets:\n\nLand\n$1,641,913 $1,750,820 \n\nBuildings and improvements8,505,486 8,598,751 \n\nUndeveloped land and construction in progress2,387,742 2,309,624 \n\nTotal real estate assets held for investment12,535,141 12,659,195 \n\nAccumulated depreciation and amortization(2,843,811)(2,824,616)\n\nTotal real estate assets held for investment, net 9,691,330 9,834,579 \n\nReal estate and other assets held for sale, net\n115,155 — \n\nCash and cash equivalents\n179,316 165,690 \n\nMarketable securities\n30,807 27,965 \n\nCurrent receivables (net of allowances of $244 and $314 as of December 31, 2025 and 2024, respectively)\n12,765 11,033 \n\nDeferred rent receivables, net\n424,794 451,996 \n\nDeferred leasing costs and acquisition-related intangible assets, net\n278,232 225,937 \n\nRight of use ground lease assets, net\n128,116 129,222 \n\nPrepaid expenses and other assets, net\n54,561 51,935 \n\nTotal assets\n$10,915,076 $10,898,357 \n\nLIABILITIES AND CAPITAL\n\nLiabilities:\n\nSecured debt, net\n$592,685 $598,199 \n\nUnsecured debt, net\n3,996,774 3,999,566 \n\nAccounts payable, accrued expenses, and other liabilities\n288,963 285,011 \n\nGround lease liabilities\n127,628 128,422 \n\nAccrued distributions\n65,009 64,850 \n\nDeferred revenue and acquisition-related intangible liabilities, net\n125,628 142,437 \n\nRents received in advance and tenant security deposits75,701 71,003 \n\nLiabilities related to real estate assets held for sale\n4,945 — \n\nTotal liabilities5,277,333 5,289,488 \n\nCommitments and contingencies (Note 17)\n\nCapital:\n\nPartner’s Capital - Common units, 118,372,451 and 118,046,674 held by the general\n\npartner and 1,133,562 and 1,150,574 held by common limited partners issued and\n\noutstanding (Note 13)\n5,472,718 5,434,518 \n\nNoncontrolling interests in consolidated property partnerships\n165,025 174,351 \n\nTotal capital5,637,743 5,608,869 \n\nTotal liabilities and capital\n$10,915,076 $10,898,357 \n\nSee accompanying notes to consolidated financial statements.\n\nF - 10\n\nKILROY REALTY, L.P.\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n(in thousands, except unit and per unit data)\n\nYear Ended December 31,\n\n202520242023\n\nRevenues:\n\nRental income\n$1,093,587 $1,118,115 $1,117,737 \n\nOther property income19,080 17,514 11,957 \n\nTotal revenues1,112,667 1,135,629 1,129,694 \n\nExpenses:\n \n\nProperty expenses243,726 243,441 228,964 \n\nReal estate taxes 107,564 108,951 105,868 \n\nGround leases\n12,048 11,715 9,732 \n\nGeneral and administrative expenses\n73,108 71,074 94,264 \n\nLeasing costs10,352 8,764 6,506 \n\nDepreciation and amortization\n354,854 356,182 355,278 \n\nTotal expenses801,652 800,127 800,612 \n\nOther Income (Expenses):\n \n\nInterest income\n6,970 37,752 22,592 \n\nInterest expense\n(126,292)(145,287)(114,216)\n\nOther income (expense)\n168 (992)830 \n\nGains on sales of depreciable operating properties\n127,038 — — \n\nImpairment of real estate assets\n(16,259)— — \n\nGain on sale of long-lived assets\n— 5,979 — \n\nTotal other expenses\n(8,375)(102,548)(90,794)\n\nNet income\n302,640 232,954 238,288 \n\nNet income attributable to noncontrolling interests in consolidated property partnerships\n(23,837)(19,923)(23,964)\n\nNet income available to common unitholders\n$278,803 $213,031 $214,324 \n\nNet income available to common unitholders per unit – basic\n$2.33 $1.78 $1.80 \n\nNet income available to common unitholders per unit – diluted\n$2.32 $1.77 $1.80 \n\nWeighted average common units outstanding – basic\n119,428,865 118,799,685 118,310,747 \n\nWeighted average common units outstanding – diluted\n119,981,910 119,307,561 118,656,829 \n\nSee accompanying notes to consolidated financial statements.\n\nF - 11\n\nKILROY REALTY, L.P.\n\nCONSOLIDATED STATEMENTS OF CAPITAL\n\n(in thousands, except unit and per unit data)\n\nPartners’ CapitalNoncontrolling Interests in Consolidated Property Partnerships\nand Subsidiaries\n\nNumber of\nCommon\nUnitsCommon UnitsTotal Capital\n\nBalance as of December 31, 2022\n118,028,605 $5,490,571 $184,390 $5,674,961 \n\nNet income214,324 23,964 238,288 \n\nIssuance of share-based compensation awards3,110 3,110 \n\nNon-cash amortization of share-based compensation43,721 43,721 \n\nNet settlement of restricted stock units\n361,527 (11,595)(11,595)\n\nDistributions to noncontrolling interests in consolidated property partnerships(30,097)(30,097)\n\nDistributions declared per common unit ($2.16 per unit)\n(258,695)(258,695)\n\nBalance as of December 31, 2023\n118,390,132 5,481,436 178,257 5,659,693 \n\nNet income213,031 19,923 232,954 \n\nIssuance of share-based compensation awards6,675 6,675 \n\nNon-cash amortization of share-based compensation24,402 24,402 \n\nNet settlement of restricted stock units\n807,116 (27,636)(27,636)\n\nDistributions to noncontrolling interests in consolidated property partnerships(23,829)(23,829)\n\nDistributions declared per common unit ($2.16 per unit)\n(263,390)(263,390)\n\nBalance as of December 31, 2024\n119,197,248 5,434,518 174,351 5,608,869 \n\nNet income278,803 23,837 302,640 \n\nIssuance of share-based compensation awards\n2,913 2,913 \n\nNon-cash amortization of share-based compensation\n23,968 23,968 \n\nNet settlement of restricted stock units\n308,765 (6,551)(6,551)\n\nDistributions to noncontrolling interests in consolidated property partnerships— (33,163)(33,163)\n\nDistributions declared per common unit ($2.16 per unit)\n(260,933)(260,933)\n\nBalance as of December 31, 2025\n119,506,013 $5,472,718 $165,025 $5,637,743 \n\nSee accompanying notes to consolidated financial statements.\n\nF - 12\n\nKILROY REALTY, L.P.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(in thousands)\n\nYear Ended December 31,\n\n202520242023\n\nCash flows from operating activities:\n\nNet income$302,640 $232,954 $238,288 \n\nAdjustments to reconcile net income to net cash provided by operating activities:\n\nDepreciation and amortization of real estate assets and leasing costs349,271 349,828 348,064 \n\nDepreciation of non-real estate furniture, fixtures, and equipment5,583 6,354 7,214 \n\nRevenues deemed uncollectible\n1,518 2,416 11,553 \n\nNon-cash amortization of deferred revenue related to tenant-funded tenant improvements\n(14,644)(17,605)(19,181)\n\nStraight-line rents, net\n11,628 3,160 (19,262)\n\nNon-cash amortization of net below-market rents\n(3,079)(3,521)(6,648)\n\nNon-cash amortization of deferred financing costs and net debt discounts4,777 6,893 5,200 \n\nNon-cash amortization of share-based compensation awards\n19,090 17,714 36,858 \n\nAmortization of right of use ground lease assets1,106 1,066 1,024 \n\nGains on sales of depreciable operating properties\n(127,038)— — \n\nImpairment of real estate assets\n16,259 — — \n\nGain on sale of long-lived assets\n— (5,979)— \n\nNet change in other operating assets(11,326)1,894 2,322 \n\nNet change in other operating liabilities10,528 (54,025)(2,843)\n\nNet cash provided by operating activities566,313 541,149 602,589 \n\nCash flows from investing activities:\n\nExpenditures for development and redevelopment properties and undeveloped land(174,687)(365,521)(446,426)\n\nExpenditures for operating properties and other capital assets(116,025)(100,303)(97,393)\n\nExpenditures for acquisitions of operating properties(397,251)(35,155)— \n\nNet proceeds received from dispositions of real estate assets\n447,938 — — \n\nNet proceeds received from disposition of long-lived assets\n— 19,354 — \n\nMaturity (Purchases) of certificates of deposit\n— 256,581 (256,581)\n\nNet cash used in investing activities(240,025)(225,044)(800,400)\n\nCash flows from financing activities:\n\nDistributions to noncontrolling interests in consolidated property partnerships(33,163)(23,829)(30,097)\n\nDistributions paid to common unitholders(257,861)(256,306)(255,430)\n\nTaxes paid upon net share settlement of restricted share units\n(6,551)(27,636)(11,595)\n\nFinancing costs\n(4,805)(18,605)(10,924)\n\nPrincipal payments and repayments of secured debt\n(6,246)(6,006)(5,775)\n\nProceeds from the issuance of unsecured debt\n395,964 395,516 — \n\nProceeds from the issuance of secured debt\n— — 375,000 \n\nRepayments of unsecured debt\n(400,000)(723,712)— \n\nBorrowings on unsecured debt\n— — 320,000 \n\nRepurchases of unsecured debt\n— — (20,584)\n\nBorrowings on unsecured revolving credit facility65,000 — — \n\nRepayments on unsecured revolving credit facility(65,000)— — \n\nNet cash (used in) provided by financing activities(312,662)(660,578)360,595 \n\nNet increase (decrease) in cash and cash equivalents and restricted cash\n13,626 (344,473)162,784 \n\nCash and cash equivalents and restricted cash, beginning of year165,690 510,163 347,379 \n\nCash and cash equivalents and restricted cash, end of year$179,316 $165,690 $510,163 \n\nSee accompanying notes to consolidated financial statements.\n\nF - 13\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n1.    Organization and Ownership\n\nKilroy Realty Corporation (the “Company”) is a self-administered real estate investment trust (“REIT”) active in premier office, life science, and mixed-use property types in the United States. Our approach to modern business environments is designed to drive creativity and productivity for some of the world’s leading technology, media, life science, and business services companies and we have been consistently recognized for our leadership in sustainability and building operations. We own, develop, acquire, and manage real estate assets, consisting primarily of premier office and life science properties in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin, which are markets we believe have strategic advantages and strong barriers to entry. The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). The Company’s common stock is publicly traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “KRC.”\n\nWe own our interests in all of our real estate assets through Kilroy Realty, L.P. (the “Operating Partnership”) and conduct substantially all of our operations through the Operating Partnership. Unless stated otherwise or the context otherwise requires, the terms “Kilroy Realty Corporation” or the “Company,” “we,” “our,” and “us” refer to Kilroy Realty Corporation and its consolidated subsidiaries, including the Operating Partnership, and the term “Operating Partnership” refers to Kilroy Realty, L.P. and its consolidated subsidiaries. The descriptions of our business, employees, and properties apply to both the Company and the Operating Partnership.\n\nOur stabilized portfolio includes all of our properties with the exception of development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, undeveloped land, and real estate assets held for sale, if any.\n\nOur stabilized portfolio of operating properties was comprised of the following properties at December 31, 2025:\n\nNumber of\nBuildingsRentable\nSquare Feet (unaudited)Number of\nTenants\nPercentage \n\nOccupied\n\n(unaudited) (1)\n\nStabilized Office Properties (2)\n121 16,292,164 438 81.6 %\n\n_______________________\n\n(1)Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements.\n\n(2)Includes stabilized life science and retail space.\n\nNumber of\nPropertiesNumber of\nUnits\n2025 Average Occupancy\n\n(unaudited)\n\nStabilized Residential Properties31,001 94.1 %\n\nAs of December 31, 2025, the following projects were excluded from our stabilized portfolio:\n\nNumber of\n\nProperties / Projects\n\nActual / Estimated Rentable\n\nSquare Feet (unaudited) (1)\n\nProperties held for sale (2)\n1427,764\n\nIn-process development project - tenant improvement\n1871,738\n\n____________________\n\n(1)For the property classified as held for sale, represents actual rentable square feet and consists of three buildings. For the in-process development project in the tenant improvement phase, represents estimated rentable square feet upon completion.\n\n(2)See Note 4 “Dispositions and Held For Sale” for additional information.\n\nOur stabilized portfolio also excludes our future development pipeline, which, as of December 31, 2025, was comprised of eight potential future development sites.\n\nF - 14\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nAs of December 31, 2025, all of our properties and development and redevelopment projects, and all of our business was conducted in the state of California, with the exception of ten stabilized office properties and one future development project located in the state of Washington, and one stabilized office property and one future development project located in Austin, Texas. All of our properties and development and redevelopment projects are 100% owned, excluding the following four office properties owned by three consolidated property partnerships. Refer to Note 2 “Basis of Presentation and Significant Accounting Policies” for further discussion of the Company’s consolidated property partnerships.\n\nConsolidated Property PartnershipProperty Address\nOwnership Interest (1) (2)\n\n100 First Street Member, LLC100 1st Street, San Francisco, CA 9410556%\n\n303 Second Street Member, LLC303 2nd Street, San Francisco, CA 9410756%\n\nRedwood City Partners, LLC900 Jefferson Avenue, Redwood City, CA 9406393%\n\n900 Middlefield Road, Redwood City, CA 94063\n\n________________________\n\n(1)Reflects the Company’s ownership percentage at time of agreement. Actual percentage may vary depending on cash flows or promote structure.\n\n(2)The remaining interests in all three property partnerships were owned by unrelated third parties.\n\nAs of December 31, 2025, the Company owned an approximate 99.1% common general partnership interest in the Operating Partnership, and the remaining approximate 0.9% common limited partnership interest in the Operating Partnership as of December 31, 2025 was owned by non-affiliated investors. Both the general and limited common partnership interests in the Operating Partnership are denominated in common units. Generally, the number of common units held by the Company is equivalent to the number of outstanding shares of the Company’s common stock, and the rights of all the common units to quarterly distributions and payments in liquidation mirror those of the Company’s common stockholders. The common limited partners have certain redemption rights as provided in the Operating Partnership’s Seventh Amended and Restated Agreement of Limited Partnership, as amended (the “Partnership Agreement”). With the exception of the Operating Partnership and our consolidated property partnerships, all of our subsidiaries are wholly-owned.\n\n2.    Basis of Presentation and Significant Accounting Policies\n\nBasis of Presentation\n\nThe consolidated financial statements of the Company include the consolidated financial position and results of operations of the Company, the Operating Partnership, the Consolidated Property Partnerships, and all of our wholly-owned and controlled subsidiaries. The consolidated financial statements of the Operating Partnership include the consolidated financial position and results of operations of the Operating Partnership, the Consolidated Property Partnerships, and all of our wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements.\n\nReclassification of Prior Period Amounts\n\nCommencing January 1, 2025, the Company began presenting a new line item, Other income (expense), which includes tax expenses, acquisition and disposition expenses, and income or expenses related to environmental and sustainability initiatives, which were previously included in General and administrative expenses. Historical amounts for General and administrative expenses and Other income (expense) have been revised to conform with the current period presentation, which resulted in no change to consolidated net income.\n\nDuring the year ended December 31, 2025, the Company combined certain line items in the Consolidated Statements of Equity. The Company determined that separate disclosure for certain line items was not meaningful to the users of the financial statements. The settlement of restricted stock units for shares of common stock is now presented net of shares withheld and payments made to settle tax obligations. Historical presentation has been revised to conform with the current period presentation. These presentation changes did not affect the total equity balance, net income, or earnings per share in any of the periods reported.\n\nF - 15\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nPartially Owned Entities and Variable Interest Entities\n\nOur accounting policy is to consolidate entities in which we have a controlling financial interest and significant decision making control over the entity’s operations. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, size of our investment (including loans), authority to control decisions, and contractual and substantive participating rights of the members. In addition to evaluating control rights, we consolidate entities in which the other members have no substantive kick-out rights to remove the Company as the managing member.\n\nEntities in which the equity investors do not have sufficient equity at risk to finance their endeavors without additional financial support or the holders of the equity investment at risk do not have a controlling financial interest are variable interest entities (“VIEs”). We evaluate whether an entity is a VIE and whether we are the primary beneficiary. We are deemed to be the primary beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or receive benefits that could potentially be significant to the VIE.\n\nThe Operating Partnership is a VIE that is consolidated by the Company as the primary beneficiary, as the Operating Partnership is a limited partnership in which the common limited partners do not have substantive kick-out or participating rights. At December 31, 2025, the consolidated financial statements of the Company included two VIEs in addition to the Operating Partnership: 100 First LLC and 303 Second LLC. At December 31, 2024, the consolidated financial statements of the Company included three VIEs in addition to the Operating Partnership: 100 First LLC, 303 Second LLC, and one entity established during the third quarter of 2024 to facilitate a potential future Section 1031 Exchange. The Company and the Operating Partnership were determined to be the primary beneficiaries of these VIEs at December 31, 2025 and 2024, since we had the ability to control the activities that most significantly impact each of the VIEs’ economic performance. Revenues, income, and net assets generated by 100 First LLC and 303 Second LLC may only be used to settle their contractual obligations, which primarily consist of operating expenses, capital expenditures, and required distributions. The following table summarizes the total assets, liabilities, and noncontrolling interests included on our consolidated balance sheets attributable to these VIEs:\n\nDecember 31, 2025December 31, 2024\n\n($ in thousands)\n\nNumber of VIEs23\n\nTotal assets (1)\n$380,940 $435,478 \n\nTotal liabilities$18,304 $18,047 \n\nTotal noncontrolling interests$160,299 $169,445 \n\n____________________\n\n(1)Includes $319.4 million and $357.3 million related to real estate assets held for investment, net, as of December 31, 2025 and 2024, respectively.\n\nIf the requirements for consolidation are not met, the Company would account for investments under the equity method of accounting if we have the ability to exercise significant influence over the entity. Equity method investments would be initially recorded at cost and subsequently adjusted for our share of net income or loss and cash contributions and distributions each period. The Company did not have any equity method investments at December 31, 2025 or 2024.\n\nSignificant Accounting Policies\n\nRevenue Recognition\n\nRental revenue for office, life science, retail, and residential operating properties is our principal source of revenue. We recognize revenue from base rent (fixed lease payments), additional rent (variable lease payments, which consist of amounts due from tenants for common area maintenance, real estate taxes, and other recoverable costs), parking, and other lease-related revenue once all of the following criteria are met: (i) the agreement has been fully executed and delivered, (ii) services have been rendered, (iii) the amount is fixed or determinable, and (iv) payment has been received or the collectability of substantially all of the amount due is probable. Minimum\n\nF - 16\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nannual rental revenues are recognized in rental revenues on a straight-line basis over the non-cancellable term of the related lease.\n\nBase Rent\n\nThe timing of when we commence rental revenue recognition for office, life science, and retail properties depends largely on our conclusion as to whether we are or the tenant is the owner of tenant improvements at the leased property for accounting purposes. When we conclude that we are the owner of tenant improvements for accounting purposes, we record the cost to construct the tenant improvements as an asset and commence rental revenue recognition when the tenant takes possession of or controls the finished space, which is generally when tenant improvements being recorded as our assets are substantially complete. In certain instances, when we conclude that the tenant is the owner of certain tenant improvements for accounting purposes, rental revenue recognition begins when the tenant takes possession or controls the physical use of the leased space. The determination of who owns the tenant improvements is made on a lease-by-lease basis and has a significant effect on the timing of commencement of revenue recognition. Further, we may deliver leased space in phases, rather than for an entire building or project, resulting in various revenue commencement dates for a particular lease, which involves significant judgment surrounding when the tenant takes possession of or controls each respective phase, building or project.\n\nWhen we conclude that we are the owner of tenant improvements for accounting purposes, we record the cost to construct the tenant improvements, including costs paid for or reimbursed by the tenants, as our capital asset. For these tenant-funded tenant improvements, we record the amount funded by or reimbursed by tenants as deferred revenue, which is amortized and recognized as rental income on a straight-line basis over the term of the related lease beginning upon substantial completion of the leased premises.\n\nWhen we conclude that the tenant is the owner of certain tenant improvements for accounting purposes, we record our contribution towards those tenant-owned improvements as a lease incentive, which is included in deferred leasing costs and acquisition-related intangible assets, net, on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the related lease beginning upon substantial completion of the leased premises.\n\nFor residential properties, we commence revenue recognition upon lease commencement. Residential rental revenue is recognized on a straight-line basis over the term of the related lease, which is generally one year, net of any concessions.\n\nWhen a lease is amended, we determine whether (i) an additional right of use not included in the original lease is being granted as a result of the modification, and (ii) there is an increase in the lease payments that is commensurate with the standalone price for the additional right of use. If both of these conditions are met, the amendment is accounted for as a separate lease contract. If either of those conditions are not met, the amendment is accounted for as a lease modification. Most of our lease amendments are accounted for as modifications of our operating leases, which requires us to reassess both the lease term and fixed lease payments, including any prepaid or deferred rent receivables relating to the original lease, as a part of the lease payments for the modified lease.\n\nTermination options in some of our leases allow the tenant to terminate the lease, in part or in whole, prior to the end of the lease term under certain circumstances. Termination options generally require advance notification from the tenant and payment of a termination fee that reimburses us for a portion of the remaining rent under the original lease term and the net book value of lease inception costs such as commissions, tenant improvements and lease incentives. Termination fee income, included in rental income, is recognized on a straight-line basis from the date of the executed termination agreement through the revised lease expiration when the amount of the fee is determinable and collectability of the fee is probable. This fee income is reduced on a straight-line basis by any deferred rent receivable related to the lease.\n\nGenerally, our leases require the tenant to restore the leased space to standard office condition upon the expiration of the lease. In some circumstances, tenants may negotiate to pay us a restoration fee in lieu of restoring the space. Restoration fee income, included in rental income, is recognized on a straight-line basis from the date of\n\nF - 17\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nthe executed restoration fee agreement through lease expiration when the amount of the fee is determinable and collectability of the fee is probable.\n\nWhen tenants declare bankruptcy, we may be able to collect some portion of their past-due rents through the bankruptcy process, whether through applying security deposit balances, drawing on tenants’ letters of credit, or through bankruptcy settlements. We recognize any amounts collected through the bankruptcy process when cash is received.\n\nAdditional Rent - Reimbursements from Tenants\n\nLeases typically provide for the reimbursement of certain property operating expenses accounted for as additional rent, which consists of amounts due from tenants for common area maintenance, real estate taxes, and other recoverable costs, and is recognized in rental income in the period the recoverable costs are incurred. Additional rent where we pay the associated costs directly to third-party vendors and are reimbursed by our tenants are recognized and recorded on a gross basis, with the associated expense recognized in property expenses or real estate taxes.\n\nOther Property Income\n\nOther property income primarily includes amounts recorded in connection with transient daily parking, broken deal income, and property damage settlement-related payments in excess of losses incurred received from third-party insurance carriers. Other property income also includes miscellaneous income from tenants and fees for late rental payments. Amounts recorded within other property income fall within the scope of ASC Topic 606 “Revenue from Contracts with Customers” and are recognized as revenue at the point in time when control of the goods or services transfers to the customer and our performance obligation is satisfied.\n\nUncollectible Lease Receivables and Allowances for Tenant and Deferred Rent Receivables\n\nCurrent tenant receivables consist primarily of amounts due for contractual lease payments and reimbursements of common area maintenance expenses, property taxes, and other costs recoverable from tenants. Deferred rent receivables represent the excess of the cumulative straight-line rental revenue recorded to date over cash rents billed to date under the lease agreement.\n\nWe carry our current and deferred rent receivables net of allowances for amounts that may not be collected, which are adjusted through rental income. The adequacy of these allowances is assessed quarterly using a binary assessment of whether or not substantially all of the amounts due under a tenant’s lease agreement are probable of collection. This assessment incorporates specific identification and aging analyses, considering the current economic and business environment, including factors such as the age and nature of the receivables, tenant payment history and financial condition, our assessment of the tenant’s ability to meet its lease obligations, and the status of negotiations of any disputes with the tenant. Significant judgment is required, and actual results may differ materially from estimates due to factors beyond our control.\n\nFor leases that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the non-cancellable lease term, with partial allowances for uncollectible accounts exhibiting a certain level of collection risk. For leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) cash received, or (ii) the amount recognized on a straight-line basis with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. If the collectability determination subsequently changes to being probable of collection for leases for which revenue is recorded based on cash received from the tenant, we resume recognizing revenue, including deferred revenue, on a straight-line basis and recognize incremental revenue related to the reinstatement of cumulative deferred rent receivable and deferred revenue balances, as if revenue had been recorded on a straight-line basis since the inception of the lease.\n\nF - 18\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nAcquisitions\n\nAcquisitions of operating properties and development and redevelopment opportunities generally do not meet the definition of a business and are accounted for as asset acquisitions, as substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. For these asset acquisitions, we record the acquired tangible and intangible assets and assumed liabilities based on each asset’s and liability’s relative fair value compared to the total purchase price plus any capitalized closing costs, including costs incurred during negotiation.\n\nFair values are determined using estimated cash flow projections, market information and discount and/or capitalization rates, considering historical operating results, known and anticipated trends, and market and economic conditions. The acquired assets and assumed liabilities for an acquisition generally include, but are not limited to: (i) land and improvements, buildings and improvements, undeveloped land, and construction in progress, and (ii) identified tangible and intangible assets and liabilities associated with in-place leases, including tenant improvements, leasing costs, value of above-market and below-market operating leases and ground leases, acquired in-place lease values, and tenant relationships, if any. Any debt assumed and equity (including common units of the Operating Partnership) issued in connection with a property acquisition is recorded at relative fair value on the date of acquisition.\n\nThe fair value of land and improvements is derived from comparable sales of land and improvements within the same submarket and/or region. The fair value of buildings and improvements, tenant improvements, and leasing costs considers the value of the property as if it was vacant as well as current replacement costs and other relevant market rate information.\n\nThe fair value of the above-market or below-market component of an acquired in-place operating lease is based upon the present value (calculated using a market discount rate) of the difference between (i) the contractual rents to be paid pursuant to the lease over its remaining non-cancellable lease term, and (ii) management’s estimate of the rents that would be paid using fair market rental rates and rent escalations at the date of acquisition measured over the remaining non-cancellable term of the lease for above-market operating leases and the initial non-cancellable term plus the term of any below-market fixed rate renewal options, if applicable, for below-market operating leases. Our below-market operating leases generally do not include fixed rate or below-market renewal options. The amounts recorded for above-market operating leases are included in deferred leasing costs and acquisition-related intangible assets, net, on the balance sheet and are amortized on a straight-line basis as a reduction of rental income over the remaining term of the applicable leases. The amounts recorded for below-market operating leases are included in deferred revenue and acquisition-related intangible liabilities, net, on the balance sheet and are amortized on a straight-line basis as an increase to rental income over the remaining term of the applicable leases plus the term of any below-market fixed rate renewal options, if applicable. The amortization of a below-market ground lease obligation is recorded as an increase to ground lease expense in the consolidated statements of operations for the periods presented. The amortization of an above-market ground lease obligation is recorded as a decrease to ground lease expense in the consolidated statements of operations for the periods presented.\n\nThe fair value of acquired in-place leases is derived based on management’s assessment of lost revenue and costs incurred for the period required to lease the “assumed vacant” property to the occupancy level when purchased. This fair value is based on a variety of considerations, including, but not necessarily limited to: (i) the value associated with lost rental revenue from existing leases during the assumed lease-up period; (ii) the value associated with avoiding the cost of originating the acquired in-place leases; and (iii) the value associated with lost revenue related to tenant reimbursable operating costs estimated to be incurred during the assumed lease-up period. Factors we consider in performing these analyses include an estimate of the carrying costs during the expected lease-up periods, current market conditions, and costs to execute similar leases. In estimating carrying costs, we include real estate taxes, insurance, and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand at market rates. In estimating costs to execute similar leases, we consider leasing commissions, legal, and other related expenses. The amount recorded for acquired in-place leases is included in deferred leasing costs and acquisition-related intangible assets, net on the balance sheet and amortized as an increase to depreciation and amortization expense over the remaining term of the applicable leases.\n\nF - 19\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nThe determination of the fair value of any debt assumed in connection with a property acquisition is estimated by discounting the future cash flows using market interest rates available for the issuance of debt with similar terms and remaining maturities.\n\nThe determination of the fair value of the acquired tangible and intangible assets and assumed liabilities of acquisitions requires us to make significant judgments and assumptions about the numerous inputs discussed above. The use of different assumptions in these fair value calculations could significantly affect the reported amounts of the allocation of our acquisition related assets and liabilities and the related depreciation and amortization expense recorded for such assets and liabilities. In addition, because the value of above and below-market leases are amortized as either a reduction or increase to rental income, respectively, our judgments for these intangibles could have a significant impact on our reported rental revenues and results of operations.\n\nTransaction costs associated with our acquisitions, including costs incurred during negotiation, are capitalized as part of the purchase price of the acquisition.\n\nOperating Properties\n\nOperating properties are generally carried at historical cost less accumulated depreciation. Properties held for sale are reported at the lower of the carrying value or the fair value less estimated cost to sell. The cost of operating properties includes the purchase price or development costs of the properties. Costs incurred for the renovation and extension of the useful life of the operating properties are capitalized to our investment in that property. Maintenance and repairs are charged to expense as incurred.\n\nCost Capitalization\n\nWe capitalize all costs associated with development and redevelopment activities, capital improvements, and tenant improvements as project costs, including internal compensation costs related to those activities. In addition, the following costs are capitalized as project costs during periods in which activities necessary to prepare development and redevelopment properties for their intended use are in progress: pre-construction costs essential to the development of the property, interest costs based on the weighted average interest rate of our outstanding indebtedness for the period, real estate taxes, and insurance.\n\nDetermining whether expenditures meet the criteria for capitalization requires management to exercise significant judgment. Expenditures that meet one or more of the following criteria generally qualify for capitalization:\n\n•Provide benefit in future periods;\n\n•Extend the useful life of the asset beyond our original estimates; and\n\n•Increase the quality of the asset beyond our original estimates.\n\nWe define redevelopment properties as those properties for which we expect to spend significant development and construction costs pursuant to a formal plan to change its use, the intended result of which is a higher economic return on the property.\n\nWe define a property in the tenant improvement phase as a development or redevelopment property where the project has reached “cold shell condition” and is ready for tenant improvements, which may require additional major base building modifications before being placed in service. Projects in the tenant improvement phase are moved into our stabilized portfolio once the project reaches the earlier of 95% occupancy or one year from the date of the cessation of major base building construction activities.\n\nFor office, life science, and retail development and redevelopment properties, the date the capitalization period ends is based on property-specific leasing activity:\n\nF - 20\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n•For properties that are pre-leased, we cease capitalization when revenue recognition has commenced on the leased space, which is upon substantial completion of tenant improvements deemed to be the Company’s asset for accounting purposes.\n\n•For properties that are not pre-leased, we may not immediately build out the tenant improvements. Therefore, we cease capitalization and begin depreciation on the portion of the property for which revenue recognition has commenced on the leased space, but in any event, no later than one year after the cessation of major base building construction activities. Revenue recognition commences on leased space upon substantial completion of the tenant improvements deemed to be the Company’s asset for accounting purposes. We also cease capitalization when activities necessary to prepare the property for its intended use have been suspended.\n\nOnce major base building construction activities have ceased and the development or redevelopment property (or phases thereof) have been placed in service, the costs capitalized to construction in progress are transferred to land and improvements, buildings and improvements, and deferred leasing costs on our consolidated balance sheets as the historical cost of the property.\n\nEvaluation of Asset Impairment\n\nWe evaluate our real estate assets, including land held for future development, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a given asset may not be recoverable. This evaluation is performed property-by-property basis. Factors we use to determine whether an impairment evaluation is necessary include:\n\n•low occupancy levels, forecasted low occupancy levels, or near term lease expirations at a specific property;\n\n•current period operating or cash flow losses combined with a historical pattern or future projection of potential continued operating or cash flow losses at a specific property;\n\n•deterioration in rental rates for a specific property as evidenced by sudden significant rental rate decreases or continuous rental rate decreases over numerous quarters, which could signal a continued decrease in future cash flows for that property;\n\n•deterioration of a given rental submarket as evidenced by significant increases in market vacancy and/or negative absorption rates, or continuous increases in market vacancy and/or negative absorption rates over numerous quarters, which could signal a decrease in future cash flows for properties within that submarket;\n\n•significant increases in property sales yields, continuous increases in property sales yields over several quarters, or recent property sales at a loss within a given submarket, each of which could signal a decrease in the market value of properties;\n\n•significant change in strategy or use of a specific property, or any other event that could result in a decreased holding period, including classifying a property as held for sale, or significant development delay;\n\n•evidence of material physical damage to the property; and\n\n•default by a significant tenant when any of the other indicators above are present.\n\nWhen evaluating operating real estate assets to be held and used for potential impairment, including land held for future development, we first evaluate whether there are any indicators of impairment. If any impairment indicators are present for a specific real estate asset, we compare the asset’s net carrying amount to its estimated undiscounted future cash flows over the anticipated holding period. If the carrying amount exceeds these cash flows, we calculate an impairment loss by comparing the carrying amount to the asset’s estimated fair value, using discounted cash flow models or third-party appraisals. An impairment loss recognized sets a new cost basis for the asset, which is then depreciated over its remaining useful life. Assets held for sale are carried at the lower of carrying value or fair value less closing costs, and depreciation ceases.\n\nF - 21\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nDepreciation and Amortization of Buildings and Improvements and Furniture, Fixtures, and Other Long-Lived Assets\n\nThe costs of buildings and improvements, tenant improvements, and furniture, fixtures and other long-lived assets are depreciated using the straight-line method of accounting over the estimated useful lives set forth in the table below. Depreciation expense for buildings and improvements for the three years ended December 31, 2025, 2024, and 2023 was $305.8 million, $308.0 million, and $300.1 million, respectively:\n\nAsset DescriptionDepreciable Lives\n\nBuildings and improvements (1)\n\n25 – 40 years\n\nTenant improvements (2)\n\n1 - 20 years\n\nFurniture, fixtures, and other long-lived assets (3)\n\n1 - 5 years\n\n____________________\n\n(1)Building improvements associated with in-process capital improvement projects begin depreciation once placed in service.\n\n(2)Tenant improvements are amortized over the shorter of the lease term or the estimated useful life.\n\n(3)Accumulated depreciation for furniture, fixtures, and other long-lived assets is included in “Prepaid expense and other assets, net” on our consolidated balance sheets.\n\nReal Estate Assets Held for Sale and Dispositions\n\nA real estate asset is classified as held for sale when certain criteria are met, including, but not limited to, the availability of the asset for immediate sale, the existence of an active program to locate a buyer, and the probable sale or transfer of the asset within one year. If such criteria are met, we present the applicable assets and liabilities related to the real estate asset, if material, separately on the balance sheet as held for sale and we would cease to record depreciation and amortization expense. Real estate assets held for sale are reported at the lower of carrying value or fair value less costs to sell.\n\nThe net gains (losses) on dispositions of non-depreciable real estate property (i.e. land) are reported in the consolidated statements of operations as gains (losses) on sale of land in the period the land is sold. The net gains (losses) on dispositions of certain other depreciable assets, such as a corporate aircraft, are reported in the consolidated statements of operations as gains (loss) on sales of long-lived assets in the period the asset is sold. The net gains (losses) on dispositions of depreciable real estate property are reported in the consolidated statements of operations as gains (losses) on sales of depreciable operating properties in the period the property is sold.\n\nCash and Cash Equivalents\n\nWe consider all highly-liquid investments, including certificates of deposit, with original maturities of three months or less to be cash equivalents.\n\nRestricted Cash\n\nRestricted cash consists of cash proceeds from dispositions that are temporarily held at qualified intermediaries for purposes of facilitating potential Section 1031 Exchanges, and cash held in escrow related to acquisition and disposition holdbacks. Restricted cash may also include cash held as collateral to provide credit enhancement for the Operating Partnership’s mortgage debt, including cash reserves for capital expenditures, tenant improvements, and property taxes. We did not have any restricted cash at December 31, 2025 and 2024.\n\nMarketable Securities\n\nMarketable securities reported in our consolidated balance sheets represent assets held in connection with the Kilroy Realty Corporation 2007 Deferred Compensation Plan (the “Deferred Compensation Plan”) (see Note 15 “Employee Benefit Plans” for additional information). These assets are held in a limited rabbi trust and invested in various mutual and money market funds. As a result, the marketable securities are treated as trading securities for financial reporting purposes and are adjusted to fair value at the end of each reporting period.\n\nF - 22\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nAt the time eligible management employees (“Participants”) defer compensation or earn mandatory Company contributions, or if we were to make a discretionary contribution, we record compensation cost and a corresponding deferred compensation plan liability, which is included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets. This liability is adjusted to fair value at the end of each accounting period based on the performance of the benchmark funds selected by each Participant, and the impact of adjusting the liability to fair value is recorded as an increase or decrease to compensation cost. The impact of adjusting the deferred compensation plan liability to fair value and the changes in the value of the marketable securities held in connection with the Deferred Compensation Plan generally offset and therefore do not significantly impact net income.\n\nDeferred Leasing Costs\n\nCosts incurred in connection with successful property leasing are capitalized as deferred leasing costs and classified as investing activities in the statement of cash flows. Deferred leasing costs consist of leasing commissions paid to external third-party brokers and lease incentives, and are amortized using the straight-line method of accounting over the lives of the associated leases which generally range from one to 20 years. We may re-evaluate the remaining useful lives of leasing costs as the creditworthiness of our tenants and economic and market conditions change. If we determine that the estimated remaining life of a lease has changed, we adjust the amortization period accordingly. Fully amortized deferred leasing costs are written off each quarter.\n\nDeferred Financing Costs\n\nFinancing costs related to the origination or assumption of long-term debt are deferred and generally amortized into interest expense using the straight-line method of accounting, which approximates the effective interest method, over the contractual terms of the applicable financings. Deferred financing costs incurred in connection with the establishment of the unsecured revolving credit facility are initially recorded as prepaid assets on the balance sheet and subsequently amortized to interest expense over the contractual term of the facility, typically using the straight-line method.\n\nDebt Discounts and Premiums\n\nOriginal issuance debt discounts and discounts/premiums related to recording debt acquired in connection with operating property acquisitions at fair value are generally amortized and accreted on a straight-line basis, which approximates the effective interest method. Discounts are recorded as additional interest expense from date of issuance or acquisition through the contractual maturity date of the related debt. Premiums are recorded as a reduction to interest expense from the date of issuance or acquisition through the contractual maturity date of the related debt.\n\nNoncontrolling Interests - Common Units of the Operating Partnership in the Company’s Consolidated Financial Statements\n\nCommon units of the Operating Partnership within noncontrolling interests in the Company’s consolidated financial statements represent the common limited partnership interests in the Operating Partnership not held by the Company (“noncontrolling common units”). Noncontrolling common units are presented in the equity section of the Company’s consolidated balance sheets and are reported at their proportionate share of the net assets of the Operating Partnership. Noncontrolling interests with redemption provisions that permit the issuer to settle in either cash or shares of common stock must be further evaluated to determine whether equity or temporary equity classification on the balance sheet is appropriate. Since the common units contain such a provision, we evaluated the accounting guidance and determined that the common units qualify for equity presentation in the Company’s consolidated financial statements. Net income attributable to noncontrolling common units is allocated based on their relative ownership percentage of the Operating Partnership during the reported period. The noncontrolling interest ownership percentage is determined by dividing the number of noncontrolling common units by the total number of common units outstanding. The issuance or redemption of additional shares of common stock or common units results in changes to the noncontrolling interest percentage as well as the total net assets of the Company. As a result, all equity transactions result in an allocation between equity and the noncontrolling interest in the Company’s\n\nF - 23\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nconsolidated balance sheets and statements of equity to account for the changes in the noncontrolling interest ownership percentage as well as the change in total net assets of the Company.\n\nNoncontrolling Interests in Consolidated Property Partnerships\n\nNoncontrolling interests in consolidated property partnerships represent the equity interests held by unrelated third parties in our three consolidated property partnerships (see Note 10 “Noncontrolling Interests on the Company’s Consolidated Financial Statements” and see Note 11 “Noncontrolling Interests on the Operating Partnership’s Consolidated Financial Statements”). Noncontrolling interests in consolidated property partnerships are not redeemable and are presented as permanent equity in the Company’s consolidated balance sheets. We account for the noncontrolling interests in consolidated property partnerships using the hypothetical liquidation at book value (“HLBV”) method to attribute the earnings or losses of the consolidated property partnerships between the controlling and noncontrolling interests. Under the HLBV method, the amounts reported as noncontrolling interests in consolidated property partnerships in the consolidated balance sheets represent the amounts the noncontrolling interests would hypothetically receive at each balance sheet reporting date under the liquidation provisions of the governing agreements assuming the net assets of the consolidated property partnerships were liquidated at recorded amounts and distributed between the controlling and noncontrolling interests in accordance with the governing documents. The net income attributable to noncontrolling interests in consolidated property partnerships in the consolidated statements of operations is associated with the increase or decrease in the noncontrolling interest holders’ contractual claims on the respective entities’ balance sheets assuming a hypothetical liquidation at the end of that reporting period when compared with their claims on the respective entities’ balance sheets assuming a hypothetical liquidation at the beginning of that reporting period, after removing the impact of any contributions or distributions.\n\nCommon Partnership Interests on the Operating Partnership’s Consolidated Balance Sheets\n\nThe common units held by the Company and the noncontrolling common units held by the common limited partners are both presented in the permanent equity section of the Operating Partnership’s consolidated balance sheets in partners’ capital. The redemption rights of the noncontrolling common units permit us to settle the redemption obligation in either cash or shares of the Company’s common stock at our option (see Note 10 “Noncontrolling Interests on the Company’s Consolidated Financial Statements” for additional information).\n\nNoncontrolling Interests on the Operating Partnership’s Consolidated Financial Statements\n\nNoncontrolling interests in the Operating Partnership’s consolidated financial statements include the noncontrolling interest in property partnerships (See Note 11 “Noncontrolling Interests on the Operating Partnership’s Consolidated Financial Statements”).\n\nEquity Offerings\n\nUnderwriting commissions and offering costs incurred in connection with common equity offerings and any at-the-market stock offering programs (See Note 12 “Stockholders’ Equity of the Company”) are reflected as a reduction of additional paid-in capital.\n\nThe net proceeds from any equity offering of the Company are generally contributed to the Operating Partnership in exchange for a number of common units equivalent to the number of shares of common stock issued and are reflected in the Operating Partnership’s consolidated financial statements as an increase in partners’ capital.\n\nShare-Based Incentive Compensation Accounting\n\nCompensation cost for all share-based awards requires measurement at estimated fair value on the grant date. Compensation cost is recognized on a straight-line basis over the requisite service period. The grant date fair value of share-based awards with market conditions are calculated using a Monte Carlo simulation pricing model. Forfeitures of all share-based awards are recognized when they occur.\n\nF - 24\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nFor share-based awards in which the performance period precedes the grant date, we recognize compensation cost over the requisite service period, which includes both the performance and service vesting periods, using the accelerated attribution expense method. The requisite service period begins on the date the Executive Compensation Committee authorizes the award and adopts any relevant performance measures.\n\nFor share-based awards with performance conditions, the total estimated compensation cost is based on our most recent estimate of the probable achievement of the pre-established specific performance measures. These estimates are based on actual results and our latest internal forecasts for each performance measure. For share-based awards with market conditions, the total estimated compensation cost is based on the fair value of the award at the grant date. For share-based awards with performance conditions and market conditions, the total estimated compensation cost is based on the fair value per share at the grant date multiplied by our most recent estimate of the number of shares to be earned based on actual results and the probable achievement of the pre-established corporate performance measures based on our latest internal forecasts.\n\nIn accordance with the provisions of our share-based incentive compensation plan, we accept the return of shares of Company common stock, at the current quoted market price, from employees to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.\n\nFor share-based awards granted by the Company, the Operating Partnership issues a number of common units equal to the number of shares of common stock ultimately granted by the Company in respect of such awards.\n\nBasic and Diluted Net Income Available to Common Stockholders per Share\n\nBasic net income available to common stockholders per share is computed by dividing net income available to common stockholders after the allocation of income to participating securities, by the weighted-average number of shares of common stock outstanding for the period. Diluted net income available to common stockholders per share is computed by dividing net income available for common stockholders, after the allocation of income to participating securities, by the sum of the weighted-average number of shares of common stock outstanding for the period plus the assumed exercise of all dilutive securities. The impact of the outstanding common units is considered in the calculation of diluted net income available to common stockholders per share. The common units are not reflected in the diluted net income available to common stockholders per share calculation because the exchange of common units into common stock is on a one for one basis, and the common units are allocated net income on a per share basis equal to the common stock (See Note 19 “Net Income Available to Common Stockholders Per Share of the Company”). Accordingly, any exchange would not have any effect on diluted net income (loss) available to common stockholders per share.\n\nShare-based payment awards (primarily vested restricted stock units (“RSUs”)) containing nonforfeitable rights to dividends or dividend equivalents are accounted for as participating securities and included in the computation of basic and diluted net income available to common stockholders per share pursuant to the two-class method. The dilutive effect of shares issuable under executed forward equity sale agreements, if any, are reflected in the weighted average diluted outstanding shares calculation by application of the treasury stock method. The dilutive effect of the outstanding nonvested shares of common stock (“nonvested shares”) and RSUs that have not yet been vested but are contingently issuable under the share-based compensation programs is reflected in the weighted average diluted shares calculation by application of the treasury stock method.\n\nBasic and Diluted Net Income Available to Common Unitholders per Unit\n\nBasic net income available to common unitholders per unit is computed by dividing net income available to the general partner and common unitholders, after the allocation of income to participating securities, by the weighted-average number of vested common units outstanding for the period. Diluted net income available to common unitholders per unit is computed by dividing net income available to the general partner and common unitholders, after the allocation of income to participating securities, by the sum of the weighted-average number of common units outstanding for the period plus the assumed exercise of all dilutive securities.\n\nF - 25\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nThe dilutive effect of outstanding nonvested shares, RSUs, awards containing nonforfeitable rights to dividend equivalents and shares issuable under executed forward equity sale agreements, if any, are reflected in diluted net income available to the general partner and common unitholders per unit in the same manner as noted above for net income available to common stockholders per share.\n\nFair Value Measurements\n\nThe marketable securities held in connection with our Deferred Compensation Plan are recorded at fair value on a recurring basis in our consolidated financial statements. All other financial instruments of the Company, with the exception of our secured and unsecured debt instruments which are disclosed in Note 18 “Fair Value Measurements and Disclosures” to our consolidated financial statements, are recorded at amounts which, in management’s judgment, reasonably approximate their fair values. We elected not to apply the fair value option for any of our eligible financial instruments or other items.\n\nWe determine the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. This hierarchy requires the use of observable market data when available. The following is the fair value hierarchy:\n\n•Level 1 – quoted prices for identical instruments in active markets;\n\n•Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and\n\n•Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.\n\nWe determine the fair value for the marketable securities using quoted prices in active markets for identical assets. Our other financial instruments, which are only disclosed at fair value, are comprised of certificates of deposit, secured debt, unsecured senior notes, unsecured revolving credit facility, and unsecured term loan facility.\n\nWe generally determine the fair value of our secured debt, unsecured senior notes, unsecured revolving credit facility, and unsecured term loan facility by performing discounted cash flow analyses using an appropriate market discount rate. For our fixed-rate debt instruments, including our secured debt and unsecured senior notes, we calculate the market rate by obtaining period-end treasury rates for maturities that correspond to the maturities of our fixed-rate debt and then adding an appropriate credit spread based on information obtained from third-party financial institutions. These credit spreads take into account factors, including, but not limited to, our credit profile, the tenure of the debt, amortization period, whether the debt is secured or unsecured, and the loan-to-value ratio of the debt to the collateral. These calculations are significantly affected by the assumptions used, including the discount rate, credit spreads, and estimates of future cash flows. We determine the fair value of each of our publicly traded unsecured senior notes based on their quoted trading price at the end of the reporting period, if such prices are available. For our floating-rate debt instruments, including our unsecured line of credit agreement and unsecured term loan, we calculate the market rate by obtaining Adjusted SOFR and then adding an appropriate credit spread based on our credit ratings.\n\nIncome Taxes\n\nWe have elected to be taxed as a REIT under Sections 856 through 860 of the Code. To qualify as a REIT, we must distribute annually at least 90% of our adjusted taxable income, as defined in the Code, to our stockholders and satisfy certain other organizational and operating requirements. We generally will not be subject to federal income taxes if we distribute 100% of our taxable income for each year to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes on our taxable income at regular corporate rates and we may not be able to qualify as a REIT for four subsequent taxable years. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property and to federal income taxes and excise taxes on our undistributed taxable income. We believe that we have met all of the REIT distribution and\n\nF - 26\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\ntechnical requirements for the years ended December 31, 2025, 2024, and 2023, and we were not subject to any federal income taxes (See Note 22 “Tax Treatment of Distributions” for additional information). We intend to continue to adhere to these requirements and maintain the Company’s REIT status. Accordingly, no provision for federal income taxes has been made in the accompanying financial statements.\n\nIn addition, any taxable income from our taxable REIT subsidiaries are subject to federal, state, and local income taxes. For the years ended December 31, 2025, 2024, and 2023 the taxable REIT subsidiaries had de minimis taxable income.\n\nUncertain Tax Positions\n\nWe include favorable tax positions in the calculation of tax liabilities if it is more likely than not that our adopted tax position will prevail if challenged by tax authorities.\n\nWe evaluated the potential impact of identified uncertain tax positions for all tax years still subject to audit under state and federal income tax law and concluded that we did not have any unrecognized tax benefits or any additional tax liabilities as of December 31, 2025 or 2024. As of December 31, 2025, the years still subject to audit are 2021 through 2025 under the California state income tax law, 2023 through 2025 under the Texas state income tax law and 2022 through 2025 under the federal income tax law.\n\nUse of Estimates\n\nThe preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates.\n\nSegments\n\nWe currently operate as one reportable segment. See Note 23 “Segments” for additional information.\n\nConcentration of Credit Risk\n\nAll of our business is currently conducted in the state of California, with the exception of the ownership and operation of ten stabilized office properties and one future development project located in the state of Washington, and one stabilized office property and one future development project located in Austin, Texas. The ability of tenants to honor the terms of their leases is dependent upon the economic, regulatory, and social factors affecting the communities in which our tenants operate.\n\nWe have deposited cash with financial institutions that is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per institution. As of December 31, 2025 and 2024, we had cash accounts in excess of FDIC insured limits.\n\nF - 27\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nRecently Issued Accounting Pronouncements\n\nAccounting Pronouncements Adopted January 1, 2025\n\nIn December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09 “Income Taxes (Topic 740): Improvements to Tax Disclosures.” The ASU is effective for annual periods beginning after December 15, 2024. The guidance did not have a material impact on our consolidated financial statements or notes to our consolidated financial statements.\n\nAccounting Pronouncements Effective 2026 and Beyond\n\nIn November 2024, the FASB issued ASU 2024-03 “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” The ASU is effective for annual periods beginning after December 15, 2026. The Company is currently evaluating whether the guidance will have a material impact on our consolidated financial statements or notes to our consolidated financial statements.\n\nF - 28\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n3.    Acquisitions\n\nOperating Property Acquisitions\n\nDuring the years ended December 31, 2025 and 2024, we acquired the operating properties listed below from unrelated third parties:\n\nProperty\nMonth of Acquisition\nNumber of Buildings\nRentable\n\nSquare Feet\n\n(Unaudited)\n\nPurchase Price (in millions) (1)\n\n2025 Acquisitions\n\n3530 & 3550 John Hopkins Court and\n3535 & 3565 General Atomics Court\n(Nautilus)December4232,166$192.0 \n\n335-345 N. Maple Drive (Maple Plaza)September1306,366205.3 \n\nTotal 2025 Acquisitions\n5538,532$397.3 \n\n2024 Acquisitions\n\n12707 & 12777 High Bluff Drive (One Paseo Junction)September2103,731$35.0 \n\nTotal 2024 Acquisitions2103,731$35.0 \n\n________________________ \n\n(1)Excludes closing costs and purchase price credits.\n\nThe related assets, liabilities, and results of operations of the acquired properties are included in the consolidated financial statements as of the date of acquisition. The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed as of the date of acquisition, net of credits, and excluding acquisition-related costs of $0.8 million:\n\nTotal 2025 Operating\n\nProperty Acquisitions\n\nTotal 2024 Operating\n\nProperty Acquisitions\n\n(in thousands)\n\nAssets\n\nLand\n$50,382 $6,000 \n\nBuildings and improvements\n287,563 15,703 \n\nDeferred leasing costs and acquisition-related intangible assets (1)\n61,454 13,534 \n\nPrepaid expenses and other assets, net— 30 \n\nTotal assets acquired$399,399 $35,267 \n\nLiabilities\n\nAcquisition-related intangible liabilities (2)\n$2,981 $267 \n\nTotal liabilities assumed2,981 267 \n\nNet assets and liabilities acquired$396,418 $35,000 \n\n________________________ \n\n(1)For the 2025 operating property acquisitions, represents in-place leases (approximately $46.6 million with a weighted average amortization period of 4.4 years), leasing commissions (approximately $7.9 million with a weighted average amortization period of 4.7 years), and above-market leases (approximately $7.0 million with a weighted average amortization period of 4.7 years). For the 2024 operating property acquisitions, represents in-place leases (approximately $10.5 million with a weighted average amortization period of 4.7 years), leasing commissions (approximately $2.0 million with a weighted average amortization period of 4.9 years), and an above-market lease (approximately $1.0 million with a weighted average amortization period of 4.6 years).\n\n(2)For the 2025 operating property acquisitions, represents below-market leases (approximately $3.0 million with a weighted average amortization period of 3.3 years). For the 2024 operating property acquisitions, represents below-market leases (approximately $0.3 million with a weighted average amortization period of 4.9 years).\n\nAcquisition Costs\n\nDuring the years ended December 31, 2025 and 2024, we capitalized $0.8 million and $0.2 million of closing costs, respectively.\n\nF - 29\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n4.    Dispositions and Real Estate Held For Sale\n\nOperating Property Dispositions\n\nWe did not dispose of any operating properties during the years ended December 31, 2024 and 2023. The following table summarizes the operating properties sold during the year ended December 31, 2025:\n\nLocationMonth of\nDispositionNumber of BuildingsRentable\nSquare Feet (unaudited)\nSales Price\n\n(in millions) (1)\n\n2025 Dispositions\n\n501 Santa Monica Boulevard, Santa Monica, CA (2)\nJune178,509 $40.0 \n\nSilicon Valley Campus, CA (2)\nSeptember4663,460 365.0 \n\n6255 W. Sunset Boulevard, Los Angeles, CA\n\n(Sunset Media Center) (3)\nDecember1325,772 61.0 \n\nTotal 2025 Dispositions61,067,741 $466.0 \n\n____________________\n\n(1)Represents gross sales price before broker commissions, closing costs, and purchase price credits.\n\n(2)The total gains on the sales of the operating properties sold during the year ended December 31, 2025 was $127.0 million.\n\n(3)During the three months and year ended December 31, 2025, we recognized an impairment charge of approximately $16.3 million to reduce the carrying amount of this property to its current fair value less closing costs.\n\nReal Estate Assets Held for Sale\n\nAs of December 31, 2025, we classified a three-building office property, totaling 427,764 rentable square feet (unaudited), in the I-15 Corridor of San Diego as held for sale. The property was sold on January 23, 2026, for a gross sales price of $124.5 million, resulting in an estimated gain on sale of $8.2 million.\n\nThe major classes of assets and liabilities of the property classified as held for sale as of December 31, 2025 were as follows:\n\nReal estate and other assets held for sale, net(in thousands)\n\nLand\n$23,158 \n\nBuildings and improvements198,535 \n\n     Total real estate assets held for sale\n221,693 \n\nAccumulated depreciation and amortization(116,693)\n\n     Total real estate assets held for sale, net\n105,000 \n\nCurrent receivables, net598 \n\nDeferred rent receivables, net5,433 \n\nDeferred leasing costs and acquisition-related intangible assets, net\n3,939 \n\nPrepaid expenses and other assets, net185 \n\n     Total real estate and other assets held for sale, net$115,155 \n\nLiabilities related to real estate assets held for sale\n\nAccounts payable, accrued expenses, and other liabilities$663 \n\nDeferred revenue and acquisition-related intangible liabilities, net1,882 \n\nRents received in advance and tenant security deposits2,400 \n\n    Total liabilities related to real estate assets held for sale\n$4,945 \n\nF - 30\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n5.    Deferred Leasing Costs and Acquisition-Related Intangible Assets and Liabilities, net\n\nThe following table summarizes our deferred leasing costs and acquisition-related intangible assets (acquired value of leasing costs, above-market operating leases, and in-place leases) and acquisition-related intangible liabilities (acquired value of below-market operating leases):\n\nDecember 31, 2025December 31, 2024\n\nDeferred Leasing Costs and Acquisition-related Intangible Assets, net:(in thousands)\n\nDeferred leasing costs$310,936 $303,541 \n\nAccumulated amortization(131,985)(136,171)\n\nDeferred leasing costs, net178,951 167,370 \n\nAbove-market operating leases8,239 1,269 \n\nAccumulated amortization(779)(156)\n\nAbove-market operating leases, net7,460 1,113 \n\nIn-place leases123,329 78,979 \n\nAccumulated amortization(31,508)(21,525)\n\nIn-place leases, net91,821 57,454 \n\nTotal deferred leasing costs and acquisition-related intangible assets, net$278,232 $225,937 \n\nAcquisition-related Intangible Liabilities, net (1):\n\nBelow-market operating leases$41,292 $38,413 \n\nAccumulated amortization(14,613)(10,995)\n\nBelow-market operating leases, net26,679 27,418 \n\nTotal acquisition-related intangible liabilities, net$26,679 $27,418 \n\n____________________\n\n(1)Included in deferred revenue and acquisition-related intangible liabilities, net in the consolidated balance sheets. Refer to Note 9 “Deferred Revenue and Acquisition-Related Intangible Liabilities, net” for a detailed breakdown of this line item .\n\nThe following table sets forth amortization related to deferred leasing costs and acquisition-related intangibles:\n\nYear Ended December 31,\n\n202520242023\n\n(in thousands)\n\nDeferred leasing costs$31,670 $34,135 $31,771 \n\nAbove-market operating leases645 86 31 \n\nIn-place leases12,122 7,453 15,878 \n\nBelow-market operating leases(3,724)(3,607)(6,679)\n\nTotal$40,713 $38,067 $41,001 \n\nThe following table sets forth the estimated annual amortization expense related to deferred leasing costs and acquisition-related intangibles as of December 31, 2025 for future periods:\n\nDeferred\nLeasing Costs\nAbove-Market Operating Leases\nIn-Place Leases\nBelow-Market Operating Leases\n\nYear Ending(in thousands)\n\n2026$32,410 $1,809 $21,138 $(4,530)\n\n202728,802 1,620 16,914 (4,075)\n\n202826,406 1,520 14,792 (3,739)\n\n202922,950 1,371 12,083 (2,976)\n\n203019,717 893 8,487 (2,593)\n\nThereafter48,666 247 18,407 (8,766)\n\nTotal$178,951 $7,460 $91,821 $(26,679)\n\n____________________\n\n(1)Refer to Note 2 “Basis of Presentation and Significant Accounting Policies” for presentation in the consolidated statements of operations.\n\nF - 31\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n6.    Prepaid Expenses and Other Assets, net\n\nPrepaid expenses and other assets, net, consisted of the following:\n\nDecember 31, 2025December 31, 2024\n\n(in thousands)\n\nFurniture, fixtures, and other long-lived assets, net (1)\n$29,179 $26,316 \n\nPrepaid expenses, net11,000 8,470 \n\nDeferred financing costs, net (2)\n9,150 12,692 \n\nOther assets5,232 4,457 \n\nTotal prepaid expenses and other assets, net$54,561 $51,935 \n\n____________________\n\n(1)Includes $43.4 million and $40.2 million of accumulated depreciation for furniture, fixtures, and other long-lived assets as of as of December 31, 2025 and 2024, respectively.\n\n(2)Refer to Note 8 “Secured and Unsecured Debt of the Operating Partnership” for a discussion of the deferred financing costs for the unsecured revolving credit facility.\n\n7.    Secured and Unsecured Debt of the Company\n\nIn this Note 7, the “Company” refers solely to Kilroy Realty Corporation and not to any of our subsidiaries. The Company itself does not hold any indebtedness. All of our secured and unsecured debt is held directly by the Operating Partnership or its subsidiaries.\n\nThe Company generally guarantees all of the Operating Partnership’s unsecured debt obligations, including the unsecured revolving credit facility, the unsecured term loan facility, and all of the unsecured senior notes. At December 31, 2025 and 2024, the Operating Partnership had $4.0 billion outstanding in total, including unamortized discounts and deferred financing costs, under these unsecured debt obligations.\n\nIn addition, although the remaining $0.6 billion of the Operating Partnership’s debt as of December 31, 2025 and 2024 is secured and non-recourse to the Company, the Company provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments, and environmental liabilities.\n\nDebt Covenants and Restrictions\n\nOne of the covenants contained within the unsecured revolving credit facility, as discussed further below in Note 8, prohibits the Company from paying dividends during an event of default in excess of an amount that results in distributions to us in an amount sufficient to permit us to pay dividends to our stockholders that we reasonably believe are necessary to (i) maintain our qualification as a REIT for federal and state income tax purposes, and (ii) avoid the payment of federal or state income or excise tax.\n\nF - 32\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n8.    Secured and Unsecured Debt of the Operating Partnership\n\nSecured Debt\n\nThe following table sets forth the composition of our secured debt:\n\nAnnual Stated\n\nInterest Rate (1)\n\nGAAP\n\nEffective Rate (1) (2)\nMaturity Date\n\nDecember 31, 2025December 31, 2024\n\nType of Debt(in thousands)\n\nMortgage note payable3.57%3.80%December 2026$148,815 $152,668 \n\nMortgage note payable\n4.48%4.57%July 202776,627 79,020 \n\nMortgage note payable5.90%6.13%August 2034375,000 375,000 \n\nTotal secured debt (3)\n$600,442 $606,688 \n\nUnamortized deferred financing costs(7,757)(8,489)\n\nTotal secured debt, net$592,685 $598,199 \n\n____________________\n\n(1)All interest rates presented are fixed-rate interest rates.\n\n(2)Represents the effective interest rate including the amortization of initial issuance discounts and deferred financing costs.\n\n(3)The secured debt and the related properties that secure this debt are held in a special purpose entity and the properties are not available to satisfy the debts and other obligations of the Company or the Operating Partnership.\n\nThe Operating Partnership’s secured debt was collateralized by operating properties with a combined net book value of approximately $950.4 million as of December 31, 2025.\n\nAlthough our secured debt is secured and non-recourse to the Company and the Operating Partnership, the Company provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments, and environmental liabilities.\n\nThe mortgage notes payable are collateralized by deeds of trust on specific real estate assets owned by the Company, as well as by the assignment of certain rents and leases associated with those properties. These secured loans generally contain customary covenants and restrictions, including limitations on additional indebtedness and requirements to maintain the properties securing the loans.\n\nUnsecured Debt\n\nIssuance of $400.0 million Unsecured Senior Notes Due 2036\n\nIn January 2024, the Operating Partnership issued $400.0 million aggregate principal amount of unsecured senior notes in a registered public offering. The outstanding balance of the unsecured senior notes is included in unsecured debt, net of an initial issuance discount of $4.5 million, on our consolidated balance sheets. The unsecured senior notes, which are scheduled to mature on January 15, 2036, require semi-annual interest payments each January and July based on a stated annual interest rate of 6.250%. The Operating Partnership may redeem the notes at any time, either in whole or in part, subject to the payment of an early redemption premium with respect to redemptions prior to October 15, 2035. On or after October 15, 2035, the Operating Partnership may redeem the notes at any time, either in whole or in part, at par.\n\nRepayment of $425.0 million Unsecured Senior Notes Due 2024\n\nIn December 2024, the Company repaid the aggregate remaining principal balance of $403.7 million of the Operating Partnership’s 3.450% $425.0 million unsecured senior notes due December 15, 2024.\n\nF - 33\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nUnsecured Senior Notes - Registered Public Offering and Repayment\n\nIn August 2025, the Operating Partnership issued $400.0 million aggregate principal amount of unsecured senior notes in a registered public offering. The outstanding balance of the unsecured senior notes is included in unsecured debt, net of an initial issuance discount of $4.0 million, on our consolidated balance sheets. The unsecured senior notes, which are scheduled to mature on October 15, 2035, require semi-annual interest payments each April and October based on a stated annual interest rate of 5.875%. The Operating Partnership may redeem the notes at any time, either in whole or in part, subject to the payment of an early redemption premium with respect to redemptions prior to July 15, 2035. On or after July 15, 2035, the Operating Partnership may redeem the notes at any time, either in whole or in part, at par. In September 2025, the Operating Partnership used the net proceeds from the issuance of the $400.0 million 5.875% unsecured senior notes to redeem the $400.0 million aggregate principal amount of our outstanding 4.375% unsecured senior notes due October 1, 2025.\n\nThe following table summarizes the balance and significant terms of the unsecured senior notes issued by the Operating Partnership and outstanding, including unamortized discounts and unamortized deferred financing costs:\n\nMaturity DateStated\nCoupon\nRate\nEffective\n\nInterest\n\nRate (1) (2)\nDecember 31, 2025December 31, 2024\n\n(in thousands)\n\nPrivate Placement Notes\n\nUnsecured Senior Notes\nJuly 20264.300%4.389%$50,000 $50,000 \n\nUnsecured Senior Notes\nOctober 20264.350%4.437%200,000 200,000 \n\nUnsecured Senior Notes\nFebruary 20273.350%3.416%175,000 175,000 \n\nUnsecured Senior Notes\nFebruary 20293.450%3.507%75,000 75,000 \n\nUnsecured Senior Notes\nJanuary 20314.270%4.322%350,000 350,000 \n\nPublic Notes\n\nUnsecured Senior Notes\nOctober 20254.375%4.444%— 400,000 \n\nUnsecured Senior Notes\nDecember 20284.750%4.874%400,000 400,000 \n\nUnsecured Senior Notes\nAugust 20294.250%4.383%400,000 400,000 \n\nUnsecured Senior Notes\nFebruary 20303.050%3.168%500,000 500,000 \n\nUnsecured Senior Notes\nNovember 20322.500%2.626%425,000 425,000 \n\nUnsecured Senior Notes\nNovember 20332.650%2.727%450,000 450,000 \n\nUnsecured Senior Notes\nOctober 20355.875%6.076%400,000 — \n\nUnsecured Senior Notes\nJanuary 20366.250%6.412%400,000 400,000 \n\nTotal Unsecured Senior Notes\n$3,825,000 $3,825,000 \n\nLess: Unamortized Net Discounts and Deferred Financing costs(27,949)(24,205)\n\nTotal Unsecured Senior Notes, Net (3)\n$3,797,051 $3,800,795 \n\n____________________\n\n(1)Represents the effective interest rate including the amortization of initial issuance discounts and deferred financing costs.\n\n(2)Interest on unsecured senior notes is payable semi-annually.\n\n(3)Includes unamortized discounts of $11.0 million and $8.4 million and unamortized deferred financing costs of $16.9 million and $15.8 million as of December 31, 2025 and December 31, 2024, respectively.\n\nUnsecured Revolving Credit Facility and Term Loan Facility\n\nIn March 2024, the Operating Partnership amended and restated the terms of its unsecured revolving credit facility. The amendment and restatement maintained the $1.1 billion borrowing capacity and extended the maturity date of the unsecured revolving credit facility to July 31, 2028.\n\nF - 34\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nThe following table summarizes the balance and terms of our unsecured revolving credit facility:\n\nUnsecured Revolving Credit Facility\n\nDecember 31, 2025December 31, 2024\n\n($ in thousands)\n\nOutstanding borrowings$— $— \n\nRemaining borrowing capacity (1)\n1,100,000 1,100,000 \n\nTotal borrowing capacity (1)\n$1,100,000 $1,100,000 \n\nInterest rate (2)\n5.07 %5.69 %\n\nAnnual facility fee (3)\n0.250%\n\nUnamortized deferred financing costs (3)\n$9,150 $12,692 \n\nMaturity date (4)\nJuly 31, 2028\n\n____________________\n\n(1)Remaining and total borrowing capacity are further reduced by the amount of our outstanding letters of credit which total approximately $5.2 million as of December 31, 2025 and December 31, 2024. We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $500.0 million under an accordion feature pursuant to the terms of the unsecured revolving credit facility.\n\n(2)Our unsecured revolving credit facility interest rate was calculated using the Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment of 0.10% (together “Adjusted SOFR”) and a margin of 1.100% based on our credit rating as of December 31, 2025 and 2024. We may be entitled to a temporary 0.01% reduction in the interest rate provided we meet certain sustainability goals with respect to the ongoing reduction of greenhouse gas emissions.\n\n(3)Our annual facility fee is paid on a quarterly basis and is calculated based on total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs in connection with the amendment and restatement of the unsecured revolving credit facility in 2024. These costs are included in Prepaid expenses and other assets, net on our consolidated balance sheets, and will continue to be amortized through the maturity date of our unsecured revolving credit facility.\n\n(4)The maturity date may be extended by two six-month periods, at the Operating Partnership’s election.\n\nThe Operating Partnership intends to borrow under the unsecured revolving credit facility from time to time for general corporate purposes, including, to finance development and redevelopment expenditures, to fund potential acquisitions, to repay long-term debt, and to supplement cash balances in response to market conditions.\n\nIn connection with amending and restating the unsecured revolving credit facility in 2024, the Operating Partnership also amended its $520.0 million unsecured term loan facility (the “2022 Term Loan Facility”). In doing so, the Operating Partnership repaid $200.0 million and extended the maturity date on $200.0 million of the principal balance by 12 months to October 3, 2025 (the “2024 Term Loan Facility”). In September 2024, the Operating Partnership repaid the remaining $120.0 million outstanding on its 2022 Term Loan Facility. In September 2025, the Operating Partnership exercised the loan extension option on the 2024 Term Loan Facility, extending the maturity date by 12 months to October 3, 2026.\n\nThe following table summarizes the balance and terms of our 2024 Term Loan Facility:\n\n2024 Term Loan Facility\n\nDecember 31, 2025December 31, 2024\n\n($ in thousands)\n\nOutstanding borrowings (1)\n$200,000 $200,000 \n\nInterest rate (2)\n5.02 %5.70 %\n\nUnamortized deferred financing costs (3)\n$277 $1,229 \n\nMaturity date (4)\nOctober 3, 2026October 3, 2025\n\n____________________\n\n(1)We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $130.0 million, under an accordion feature pursuant to the terms of the 2024 Term Loan Facility, as of December 31, 2025.\n\n(2)Our 2024 Term Loan Facility interest rate was calculated using Adjusted SOFR plus a margin of 1.200% based on our credit rating as of December 31, 2025 and 2024.\n\n(3)We incurred debt origination and legal costs in connection with the amendment and restatement of the 2024 Term Loan Facility in 2024, which remain to be amortized through the maturity date. Additionally, in connection with extending the maturity date in September 2025, we incurred additional costs which will continue to be amortized through the extended maturity date of the 2024 Term Loan Facility.\n\n(4)During the year ended December 31, 2025, we exercised our option to extend the maturity date by 12 months to October 3, 2026. The maturity date may be extended by an additional 12-month period, at the Operating Partnership’s election.\n\nF - 35\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nFinancial Covenants and Restrictions\n\nThe unsecured revolving credit facility, unsecured term loan facility, unsecured senior notes, including the private placement notes, and certain other secured debt arrangements contain covenants and restrictions requiring us to meet certain financial ratios and reporting requirements. Some of the more restrictive financial covenants include a maximum ratio of total debt to total asset value, a minimum fixed-charge coverage ratio, a maximum ratio of secured debt to total asset value, a minimum unsecured debt ratio, and a minimum unencumbered asset pool debt service coverage ratio. Noncompliance with one or more of the covenants and restrictions could result in the full principal balance of the associated debt becoming immediately due and payable. We were in compliance with all of our financial covenants as of December 31, 2025 and 2024.\n\nDebt Maturities\n\nThe following table summarizes the stated debt maturities and scheduled amortization payments for all outstanding debt as of December 31, 2025:\n\nYear(in thousands)\n\n2026$601,317 \n\n2027249,125 \n\n2028400,000 \n\n2029475,000 \n\n2030500,000 \n\nThereafter2,400,000 \n\nTotal aggregate principal value\n$4,625,442 \n\nLess: unamortized net discounts and deferred financing costs (1)\n(35,983)\n\nTotal debt, net$4,589,459 \n\n________________________ \n\n(1)     Includes $25.0 million of unamortized deferred financing costs for the unsecured term loan facility, unsecured senior notes, and secured debt, and $11.0 million of unamortized discounts for the unsecured senior notes. Excludes unamortized deferred financing costs on the unsecured revolving credit facility, which are included in Prepaid expenses and other assets, net on our consolidated balance sheets.\n\nCapitalized Interest\n\nThe following table sets forth our gross interest expense and capitalized interest. The interest expense capitalized was recorded as a cost of development and redevelopment and increased the carrying value of undeveloped land and construction in progress currently under construction:\n\nYear Ended December 31,\n\n202520242023\n\n(in thousands)\n\nGross interest expense$211,379 $227,748 $192,983 \n\nCapitalized interest(85,087)(82,461)(78,767)\n\nInterest expense$126,292 $145,287 $114,216 \n\nF - 36\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n9.    Deferred Revenue and Acquisition-Related Intangible Liabilities, net\n\nDeferred revenue and acquisition-related intangible liabilities, net consisted of the following:\n\nDecember 31, 2025December 31, 2024\n\n(in thousands)\n\nDeferred revenue related to tenant-funded tenant improvements, net\n$70,813 $81,738 \n\nOther deferred revenue, net (1)\n28,136 33,281 \n\nAcquisition-related intangible liabilities, net (2)\n26,679 27,418 \n\nTotal$125,628 $142,437 \n\n_____________________\n\n(1)Represents cash received in advance of revenue recognition, net of accumulated amortization.\n\n(2)See Note 5 “Deferred Leasing Costs and Acquisition-Related Intangible Assets and Liabilities, net” for additional information regarding our acquisition-related intangible liabilities.\n\nDeferred Revenue Related to Tenant-funded Tenant Improvements\n\nDuring the years ended December 31, 2025, 2024, and 2023, $14.6 million, $19.1 million, and $20.7 million, respectively, of deferred revenue related to tenant-funded tenant improvements was amortized and recognized as rental income. The following is the estimated amortization of deferred revenue related to tenant-funded tenant improvements as of December 31, 2025 for the next five years and thereafter:\n\nYear Ending(in thousands)\n\n2026$12,933 \n\n202711,619 \n\n202810,457 \n\n20299,726 \n\n20309,037 \n\nThereafter17,041 \n\nTotal$70,813 \n\nF - 37\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n10.    Noncontrolling Interests on the Company’s Consolidated Financial Statements\n\nCommon Units of the Operating Partnership\n\nThe Company owned an approximate 99.1% and 99.0% common general partnership interest in the Operating Partnership as of December 31, 2025 and 2024, respectively. The remaining approximate 0.9% and 1.0% common limited partnership interest as of December 31, 2025 and 2024, respectively, was owned by non-affiliated investors in the form of noncontrolling common units. There were 1,133,562 and 1,150,574 common units outstanding held by these investors as of December 31, 2025 and 2024, respectively.\n\nThe noncontrolling common units may be redeemed by unitholders for cash. Except under certain circumstances, we, at our option, may satisfy the cash redemption obligation with shares of the Company’s common stock on a one-for-one basis. If satisfied in cash, the value for each noncontrolling common unit upon redemption is the amount equal to the average of the closing quoted price per share of the Company’s common stock, par value $0.01 per share, as reported on the NYSE for the ten trading days immediately preceding the applicable redemption date. The aggregate value upon redemption of the then-outstanding noncontrolling common units was $43.2 million and $46.8 million as of December 31, 2025 and 2024, respectively. This redemption value does not necessarily represent the amount that would be distributed with respect to each noncontrolling common unit in the event of our termination or liquidation. In the event of our termination or liquidation, it is generally expected that each common unit would be entitled to a liquidating distribution equal to the liquidating distribution payable in respect of each share of the Company’s common stock.\n\nNoncontrolling Interest in Consolidated Property Partnerships\n\nRefer to Note 11 “Noncontrolling Interests on the Operating Partnership’s Consolidated Financial Statements” for additional information regarding these consolidated property partnerships.\n\n11.    Noncontrolling Interests on the Operating Partnership’s Consolidated Financial Statements\n\nConsolidated Property Partnerships\n\nThe noncontrolling equity interests in 100 First LLC and 303 Second LLC as of December 31, 2025 and 2024 were $160.3 million and $169.4 million, respectively. The remaining amount of noncontrolling equity interests in consolidated property partnerships represents the third party equity interests in Redwood LLC. This noncontrolling equity interest was $4.7 million and $4.9 million as of December 31, 2025 and 2024, respectively.\n\n12.    Stockholders’ Equity of the Company\n\nCommon Stock\n\nAt-The-Market Stock Offering Program\n\nUnder our at-the-market (“ATM”) stock offering program (the “2024 ATM Program”), which commenced in March 2024, we may offer and sell shares of our common stock having an aggregate gross sales price up to $500.0 million from time to time in “at-the-market” offerings. In connection with the 2024 ATM Program, the Company may also, at its discretion, enter into forward equity sale agreements. The use of forward equity sale agreements allows the Company to lock in a share price on the sale of shares of our common stock at the time an agreement is executed, but defer settling the forward equity sale agreements and receiving the proceeds from the sale of shares until a later date. The Company did not have any outstanding forward equity sale agreements to be settled at December 31, 2025. Since commencement of the 2024 ATM Program, we have not completed any sales of common stock.\n\nF - 38\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nShare Repurchase Program\n\nUnder our current share repurchase program, which commenced in February 2024 (the “Share Repurchase Program”), we are authorized to repurchase shares of the Company’s common stock having an aggregate gross purchase price of up to $500.0 million. Under the Share Repurchase Program, repurchases may be made from time to time using a variety of methods, which may include open market purchases and privately negotiated transactions. The specific timing, price, and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The Share Repurchase Program does not have a termination date and repurchases may be discontinued at any time. As of December 31, 2025, the Share Repurchase Program had $500.0 million of available repurchase capacity. Since commencement of the Share Repurchase Program, we have not completed any common stock repurchases and did not repurchase any common stock under the previous share repurchase program approved by the Company’s Board of Directors in 2016 during the year ended December 31, 2023.\n\nAccrued Dividends and Distributions\n\nThe following tables summarize accrued dividends and distributions for the noted outstanding shares of common stock and noncontrolling units:\n\nDecember 31, 2025December 31, 2024\n\n(in thousands)\n\nDividends and Distributions payable to:\n\nCommon stockholders$63,921 $63,745 \n\nNoncontrolling common unitholders of the Operating Partnership612 621 \n\nRSU holders (1)\n476 484 \n\nTotal accrued dividends and distribution to common stockholders and noncontrolling unitholders$65,009 $64,850 \n\n_____________________\n\n(1)The amount includes the value of the dividend equivalents that will be paid with additional RSUs (See Note 14 “Share-Based and Other Compensation” for additional information).\n\n December 31, 2025December 31, 2024\n\nOutstanding Shares and Units:\n\nCommon stock118,372,451 118,046,674 \n\nNoncontrolling common units1,133,562 1,150,574 \n\nRSUs (1)\n846,072 861,385 \n\n_____________________\n\n(1)The amount includes nonvested RSUs. Does not include 1,394,111 and 926,695 performance-based RSUs because not all the necessary performance conditions have been met as of December 31, 2025 and 2024, respectively. Refer to Note 14 “Share-Based and Other Compensation” for additional information.\n\nF - 39\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n13.    Partners’ Capital of the Operating Partnership\n\nCommon Units\n\nCommon Units Outstanding\n\nThe following table sets forth the number of common units held by the Company as the general partner and the number of common units held by non-affiliated investors in the form of common limited partner units as well as the ownership interest held on each respective date:\n\nDecember 31, 2025December 31, 2024\n\nCompany owned common units in the Operating Partnership118,372,451 118,046,674 \n\nCompany owned general partnership interest99.1 %99.0 %\n\nNon-affiliated investors and other common units of the Operating Partnership1,133,562 1,150,574 \n\nOwnership interest of limited partnership interests0.9 %1.0 %\n\nFor a further discussion of the redemption features of the common units not owned by the Company as of December 31, 2025 and 2024, refer to Note 10 “Noncontrolling Interests on the Company’s Consolidated Financial Statements.”\n\nAccrued Distributions\n\nThe following tables summarize accrued distributions for the noted common units:\n\nDecember 31, 2025December 31, 2024\n\n (in thousands)\n\nDistributions payable to:\n\nGeneral partner$63,921 $63,745 \n\nCommon limited partners612 621 \n\nRSU holders (1)\n476 484 \n\nTotal accrued distributions to common unitholders$65,009 $64,850 \n\n_____________________\n\n(1)The amount includes the value of the dividend equivalents that will be paid with additional RSUs (See Note 14 “Share-Based and Other Compensation” for additional information).\n\nDecember 31, 2025December 31, 2024\n\nOutstanding Units:\n\nCommon units held by the general partner118,372,451 118,046,674 \n\nCommon units held by the limited partners1,133,562 1,150,574 \n\nRSUs (1)\n846,072 861,385 \n\n_____________________\n\n(1)Does not include 1,394,111 and 926,695 performance-based RSUs because not all the necessary performance conditions have been met as of December 31, 2025 and 2024, respectively. Refer to Note 14 “Share-Based and Other Compensation” for additional information.\n\nF - 40\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n14.    Share-Based and Other Compensation\n\nShare-Based Incentive Compensation Plan\n\nAs of December 31, 2025, we maintained one share-based incentive compensation plan, the Kilroy Realty 2006 Incentive Award Plan, as amended (the “2006 Plan”). The Company has a currently effective registration statement registering 12.6 million shares of our common stock for possible issuance under our 2006 Plan. As of December 31, 2025, approximately 1.8 million shares were available for grant under the 2006 Plan. The calculation of shares available for grant is presented after taking into account a reserve to cover the vesting and payment of 2006 Plan awards that were outstanding on that date, including performance-based vesting awards at (i) levels actually achieved for the performance conditions (as defined below) for which the performance period has been completed, and (ii) at maximum levels for the performance conditions (as defined below) for which the performance period has not been completed.\n\nThe Executive Compensation Committee of the Company’s Board of Directors (the “Executive Compensation Committee”) may grant the following share-based awards to eligible individuals, as provided under the 2006 Plan: incentive stock options, nonqualified stock options, restricted stock (nonvested shares), stock appreciation rights, performance shares, performance stock units, dividend equivalents, stock payments, deferred stock, restricted stock units, profit interest units, performance bonus awards, performance-based awards, and other incentive awards. For each award granted under our share-based incentive compensation programs, the Operating Partnership simultaneously issues to the Company a number of common units equal to the number of shares of common stock ultimately paid by the Company in respect of such awards. The Executive Compensation Committee generally grants RSU awards to certain officers of the Company under the 2006 Plan annually in the first quarter. A portion of these awards are subject to service and/or performance vesting conditions (“Performance-Based RSUs”) and the remainder are subject to only service vesting conditions (“Time-Based RSUs”).\n\n2025, 2024, and 2023 Annual Performance-Based RSU Grants\n\nDuring each of the three years in the period ended December 31, 2025, the Executive Compensation Committee granted Performance-Based RSUs to certain officers of the Company under the 2006 Plan. The Performance-Based RSUs have a three-year performance measurement period. A target number of Performance-Based RSUs were awarded, and the final number of Performance-Based RSUs that vest (which may be more or less than the target number) will be based upon (i) during the first calendar year of the respective awards’ three-year performance measurement period, the achievement of a pre-set FFO per share goal that applies to 100% of the Performance-Based RSUs awarded (the “FFO Performance Condition”), and (ii) a performance measure that applies to 50% of the award based upon the Company’s average net debt to EBITDAre ratio for the three year performance period (the “Net Debt to EBITDAre Ratio Performance Condition”), and a market measure that applies to the other 50% of the award based upon the relative ranking of the Company’s total stockholder return for the three year performance period compared to the total stockholder returns of an established comparison group of companies over the same period (the “TSR Condition”). The Performance-Based RSUs are also subject to a three-year service vesting provision (the “Service Vesting Condition”) and are scheduled to cliff vest on the date the final vesting percentage is determined following the end of the three-year performance measurement period under the awards. The number of Performance-Based RSUs ultimately earned could fluctuate from the target number of Performance-Based RSUs granted based upon the levels of achievement for the above performance conditions. The estimate of the number of Performance-Based RSUs earned is evaluated quarterly during the performance period based on our estimate for each of the performance conditions relative to the applicable goals. Compensation expense for the Performance-Based RSU grants is recognized on a straight-line basis over the requisite service period for each participant, which is generally the three-year service period.\n\nEach Performance-Based RSU represents the right to receive one share of our common stock in the future, subject to, and as modified by, the Company’s level of achievement of the applicable performance conditions. The fair values for the awards subject to the TSR Condition were calculated using a Monte Carlo simulation pricing model based on the assumptions in the table below. The determination of the fair values of the Performance-Based RSUs take into consideration the likelihood of achievement of the TSR Condition and the share price on the grant date. The following table summarizes the estimated number of RSUs earned for the 2025 and 2024 Performance-\n\nF - 41\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\nBased RSUs and the actual number of RSUs earned for the 2023 Performance-Based RSUs and the assumptions utilized in the Monte Carlo simulation pricing models:\n\n2025\n\n2024\n\n2023\n\nService vesting periodFebruary 14, 2025 - January, 2028February 1, 2024 - January, 2027February 6, 2023 - January, 2026\n\nPerformance measurement period\n\nJanuary 1, 2025 - December 31, 2027\n\nJanuary 1, 2024 - December 31, 2026\n\nJanuary 1, 2023 - December 31, 2025\n\nTarget RSUs granted308,671265,205300,007\n\nEstimated RSUs earned net of forfeitures (1)\n472,942474,214729,890\n\nFair Value Assumptions:\n\nValuation dateFebruary 14, 2025February 1, 2024February 6, 2023\n\nFair value on valuation date (in millions)$11.3$9.5$12.0\n\nWeighted average fair value per share\n$36.49$35.66$39.95\n\nExpected share price volatility38.0 %34.0 %35.0 %\n\nRisk-free interest rate4.35 %3.98 %4.12 %\n\n_____________________\n\n(1)Estimated RSUs earned for the 2025 and 2024 Performance-Based RSUs are based on the actual achievement of the applicable FFO Performance Condition and estimated achievement of the Net Debt to EBITDA Ratio Performance Condition and the TSR Condition. The 2023 Performance-Based RSUs earned are based on actual achievement of the FFO Performance Condition, the Net Debt to EBITDA Ratio Performance Condition, and the TSR Condition upon completion of the performance measurement period at December 31, 2025.\n\nSummary of Performance-Based RSUs\n\nA summary of our Performance-Based RSUs activity from January 1, 2025 through December 31, 2025 is presented below:\n\nNonvested RSUsVested RSUsTotal RSUs\n\nAmount\nWeighted-Average\n\nGrant-Date\n\nFair Value\n\nPer Share\n\nOutstanding at January 1, 2025 (1)\n926,695 $42.26 81,274 1,007,969 \n\nGranted308,671 36.49 — 308,671 \n\nPerformance award achievement adjustment (2)\n294,387 36.51 — 294,387 \n\nVested(183,474)62.93 183,474 — \n\nSettled\n— — (137,016)(137,016)\n\nIssuance of dividend equivalents (3)\n91,948 35.87 7,352 99,300 \n\nForfeited\n(44,116)37.24 — (44,116)\n\nOutstanding as of December 31, 2025 (4)\n1,394,111 $37.11 135,084 1,529,195 \n\n____________________\n\n(1)Effective 2025, management updated the presentation of the opening balance to reflect the performance adjustment related to Net Debt to EBITDA Ratio Performance Condition and the TSR Condition.\n\n(2)Represents performance adjustments above target based on the actual achievement for 2023 awards and estimated achievement for 2024 and 2025 awards.\n\n(3)Represents the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreements.\n\n(4)Outstanding nonvested RSUs as of December 31, 2025 represent the actual achievement of the 2023 Performance-Based RSUs and the estimated achievement of 2024 and 2025 Performance-Based RSUs as of December 31, 2025. Dividend equivalents earned will vest along with the underlying award and are also subject to changes based on the number of RSUs ultimately earned for each underlying award.\n\nA summary of our Performance-Based RSUs activity for the years ended December 31, 2025, 2024, and 2023 is presented below:\n\nRSUs GrantedRSUs Vested\n\nYears ended December 31,\nNon-Vested\n\nRSUs Granted\nWeighted-Average\nFair Value\nPer ShareVested RSUsTotal Vest-Date\nFair Value\n(in thousands)\n\n2025\n308,671 $36.49 190,826 $7,016 \n\n2024\n265,205 $35.66 1,089,879 $38,364 \n\n2023\n300,007 $39.95 290,570 $11,105 \n\nF - 42\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n2025, 2024, and 2023 Time-Based RSU Grants\n\nDuring each of the three years in the period ended December 31, 2025, the Executive Compensation Committee granted Time-Based RSUs to certain officers of the Company under the 2006 Plan. The Time-Based RSUs are generally scheduled to vest in three equal annual installments. Compensation expense for the Time-Based RSUs is recognized on a straight-line basis over the requisite service period, which is generally the explicit service period. Each Time-Based RSU represents the right to receive one share of our common stock in the future, subject to continued employment through the applicable vesting date.\n\nSummary of Time-Based RSUs\n\nA summary of our Time-Based RSUs activity from January 1, 2025 through December 31, 2025 is presented below:\n\nNonvested RSUsVested RSUsTotal RSUs\n\nAmount\nWeighted Average\n\nGrant-Date Fair Value Per Share\n\nOutstanding at January 1, 2025\n537,426 $36.37 242,685 780,111 \n\nGranted258,356 34.66 — 258,356 \n\nVested(313,893)40.85 313,893 — \n\nSettled\n——(347,900)(347,900)\n\nIssuance of dividend equivalents (1)\n27,154 35.87 18,668 45,822 \n\nForfeited(25,401)35.81 — (25,401)\n\nOutstanding as of December 31, 2025\n483,642 $35.37 227,346 710,988 \n\n____________________\n\n(1)Represents the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreements.\n\nA summary of our Time-Based RSUs activity for the years ended December 31, 2025, 2024, and 2023 is presented below:\n\nRSUs GrantedRSUs Vested\n\nYear ended December 31,Non-Vested\nRSUs Issued\nWeighted-Average Grant Date Fair Value Per Share\nVested RSUs\nTotal Vest-Date\n\nFair Value (1)\n\n(in thousands)\n\n2025258,356 $34.66 332,561 $12,236 \n\n2024385,718 $36.12 281,168 $10,878 \n\n2023247,017 $38.12 343,334 $12,425 \n\n____________________\n\n(1)    Total fair value of RSUs vested was calculated based on the quoted closing share price of the Company’s common stock on the NYSE on the day of vesting. Excludes the issuance of dividend equivalents earned on the underlying RSUs. The dividend equivalents vest based on terms specified under the related RSU award agreement.\n\nShare-Based Compensation Cost\n\nThe total compensation cost for all share-based compensation programs was $24.0 million, $24.4 million, and $43.7 million for the years ended December 31, 2025, 2024, and 2023, respectively. Share-based compensation costs for the year ended December 31, 2023 includes $27.3 million of accelerated share-based compensation costs for our former CEO and former President. Of the total share-based compensation costs, $4.9 million, $6.8 million, and $6.9 million was capitalized as part of real estate assets for the years ended December 31, 2025, 2024, and 2023, respectively. As of December 31, 2025, there was approximately $26.5 million of total unrecognized compensation cost related to nonvested incentive awards granted under share-based compensation arrangements and outstanding as of December 31, 2025. Such amount is based in part upon the estimated future outcome of the performance metrics as of December 31, 2025, and the actual compensation cost ultimately recognized could increase or decrease from this estimate based upon actual performance results. These costs are expected to be recognized over a weighted-average period of 1.7 years.\n\nF - 43\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n15.    Employee Benefit Plans\n\n401(k) Plan\n\nWe have a retirement savings plan designed to qualify under Section 401(k) of the Code (the “401(k) Plan”). Our employees are eligible to participate in the 401(k) Plan on the first day of the month after the date of hire. The 401(k) Plan allows eligible employees (“401(k) Participants”) to defer up to 60% of their eligible compensation on a pre-tax basis, subject to certain maximum amounts allowed by the Code. The 401(k) Plan provides for a matching contribution by the Company in an amount equal to 50 cents of each one dollar of participant contributions up to a maximum of 10% of the 401(k) Participant’s annual salary. 401(k) Participants vest immediately in the amounts contributed by us. For each of the years ended December 31, 2025, 2024, and 2023, we contributed $1.7 million, $1.8 million, and $1.7 million, respectively, to the 401(k) Plan.\n\nDeferred Compensation Plan\n\nIn 2007, we adopted the Deferred Compensation Plan, under which directors and certain management employees may defer receipt of their compensation, including up to 70% of their salaries and up to 100% of their director fees and bonuses, as applicable. In addition, certain employee participants received mandatory Company contributions to their Deferred Compensation Plan accounts equal to 10% of their gross monthly salaries, without regard to whether such employees elect to defer salary or bonus compensation under the Deferred Compensation Plan. Our Board may, but has no obligation to, approve additional discretionary contributions by the Company to Participant accounts. We hold the Deferred Compensation Plan assets in a limited rabbi trust, which is subject to the claims of our creditors in the event of bankruptcy or insolvency.\n\nSee Note 18 “Fair Value Measurements and Disclosures” for further discussion of our Deferred Compensation Plan assets as of December 31, 2025 and 2024. Our liability of $30.2 million and $27.4 million under the Deferred Compensation Plan was fully funded as of December 31, 2025 and 2024, respectively.\n\nF - 44\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n16.    Rental Income and Future Minimum Rent\n\nThe table below sets forth the allocation of rental income between fixed and variable lease payments and net collectability considerations:\n\nYear Ended December 31,\n\n202520242023\n\n(in thousands)\n\nFixed lease payments$900,285 $923,029 $944,618 \n\nVariable lease payments194,374 197,502 184,672 \n\nImpact from tenant creditworthiness considerations (1)\n(1,072)(2,416)(11,553)\n\nTotal rental income$1,093,587 $1,118,115 $1,117,737 \n\n____________________\n\n(1)Represents reversal/reserve adjustments to rental income related to our assessment of the collectability of amounts due under leases with our tenants, including recognition of deferred rent balances associated with tenants moved to / restored from a cash basis of revenue recognition and allowances for uncollectible receivables.\n\nWe have operating leases with tenants that expire at various dates through 2050 and may be subject to scheduled fixed increases and future renewal options. Leases may also provide for reimbursements of certain property-related operating expenses. Future contractual minimum rent under operating leases, which includes amounts contractually due from leases that are on a cash basis of reporting due to creditworthiness considerations, as of December 31, 2025 for future periods is summarized as follows:\n\nYear Ending(in thousands)\n\n2026$769,406 \n\n2027769,403 \n\n2028742,321 \n\n2029666,034 \n\n2030583,844 \n\nThereafter1,591,508 \n\nTotal (1)\n$5,122,516 \n\n____________________\n\n(1)Excludes residential leases, leases at properties classified as held for sale, and leases with an initial term of one year or less.\n\nF - 45\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n17.    Commitments and Contingencies\n\nDevelopment and Construction Commitments\n\nAs of December 31, 2025, we had commitments of approximately $283.9 million, excluding our ground lease commitments, for contracts and executed leases directly related to our operating and development and redevelopment properties.\n\nGround Leases\n\nThe following table summarizes our properties that are held subject to long-term non-cancellable ground lease obligations as of December 31, 2025 and the respective contractual expiration dates:\n\nProperty (1)\n\nContractual Expiration Date\n\n701, 801, and 837 N. 34th Street, Seattle, WA (2)\nDecember 2041\n\n1701 Page Mill Road and 3150 Porter Drive, Palo Alto, CADecember 2067\n\nKilroy Airport Center Phases I, II, and III, Long Beach, CA (3)\nJuly 2084\n\n3243 S. La Cienega Boulevard, Los Angeles, CAOctober 2106\n\n200 W. 6th Street, Austin, TXDecember 2112\n\n____________________\n\n(1)    Excludes one month-to-month ground lease.\n\n(2) The Company has three 10-year and one 45-year extension options for this ground lease, which if exercised would extend the expiration date to December 2116. These extension options are not assumed to be exercised in our calculation of the present value of the future minimum lease payments for this lease. The Company also has a purchase option for this ground lease.\n\n(3)    Assumes the impact of all extension options held by the Company.\n\nTo determine the discount rates used to calculate the present value of the minimum future lease payments for our ground leases, we used a hypothetical curve derived from unsecured corporate borrowing rates over the lease term. The weighted average discount rate used to determine the present value of our minimum lease payments was 4.67%. As of December 31, 2025, the weighted average remaining lease term of our ground leases is 62 years. For the years ended December 31, 2025, 2024, and 2023, variable lease costs totaling $5.0 million, $4.7 million, and $4.0 million, respectively, were recorded to ground leases expense on our consolidated statements of operations.\n\nThe minimum commitment under our ground leases as of December 31, 2025 for future periods is as follows:\n\nYear Ending\n(in thousands)\n\n2026$6,809 \n\n20276,850 \n\n20286,869 \n\n20296,869 \n\n20306,869 \n\nThereafter360,875 \n\nTotal undiscounted cash flows (1) (2) (3) (4) (5) (6)\n$395,141 \n\nPresent value discount(267,513)\n\nGround lease liabilities$127,628 \n\n________________________\n\n(1)Excludes contingent future rent payments based on gross income or adjusted gross income and reflects the minimum obligations under the ground leases including any extension options (but excluding the Seattle ground lease extension options).\n\n(2)    Our 701, 801, and 837 N. 34th Street ground lease obligation is subject to a fair market value adjustment every five years based on CPI adjustments and every 15 years based on third-party appraisals. The contractual obligations for that ground lease included above assume the current annual ground lease obligation in effect at December 31, 2025 for the remainder of the lease term, as we cannot predict future adjustments.\n\n(3)    Our 1701 Page Mill Road and 3150 Porter Drive ground lease obligation includes a component that is based on the percentage of adjusted gross income that exceeds the minimum ground rent. The minimum rent is subject to increases every 10 years by an amount equal to 60% of the average annual percentage rent for the previous three years. The contractual obligations for this lease included above assume the current annual ground lease obligation in effect at December 31, 2025 for the remainder of the lease term, as we cannot predict future adjustments.\n\n(4)    Our Kilroy Airport Center Phases I, II, and III ground lease obligation is subject to a fair market value adjustment every five years based on a combination of CPI adjustments and third-party appraisals with predetermined maximum annual increases. The contractual obligations for that ground lease included above assume the contractual minimum annual rent prior to the consideration of any variable rental payments in effect at December 31, 2025 for the remainder of the lease term, as we cannot predict future adjustments.\n\n(5)    Our 3243 S. La Cienega Boulevard ground lease obligation is subject to fixed 5% ground rent increases every five years, with the next increase occurring on November 1, 2027.\n\nF - 46\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n(6)    Our 200 W. 6th Street ground lease obligation is subject to fixed 2% annual ground rent increases, with resets occurring every ten years based on CPI. The contractual obligations for that ground lease included above assume increases for the remaining current ten-year period based on the contractual minimum annual rent prior to the consideration of any variable rental payments (1.5% of gross income) in effect at December 31, 2025.\n\nEnvironmental Matters\n\nWe follow the policy of evaluating all of our properties, including acquisitions, developments and redevelopments, and existing stabilized properties, for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist, we are not currently aware of any undisclosed environmental liability with respect to our stabilized portfolio properties that would have a material adverse effect on our financial condition, results of operations, and cash flows, or that we believe would require additional disclosure or the recording of a loss contingency.\n\nWe had the following accrued environmental remediation liabilities in connection with certain of our in-process and future development projects:\n\nDecember 31, 2025December 31, 2024\n\n(in thousands)\n\nEnvironmental liabilities\n$70,030 $72,003 \n\nThe accrued environmental remediation liabilities represent the remaining costs we estimate we will incur prior to and during the development process at various development sites. These estimates, which we developed with the assistance of third-party experts, consist primarily of the removal of contaminated soil, treatment of contaminated groundwater in connection with dewatering efforts, performance of environmental closure activities, construction of remedial systems, and other related costs that are necessary when we develop new buildings at these sites.\n\nWe record estimated environmental remediation obligations for acquired properties at the acquisition date when we are aware of such costs and when such costs are probable of being incurred and can be reasonably estimated. Estimated costs related to development environmental remediation liabilities are recorded as an increase to the cost of the development project. Actual costs are recorded as a decrease to the liability when incurred. These accruals are adjusted as an increase or decrease to the development project costs and as an increase or decrease to the accrued environmental remediation liability if we obtain further information or circumstances change. The environmental remediation obligations recorded at December 31, 2025 and 2024 were not discounted to their present values since the amount and timing of cash payments are not fixed. It is possible that we could incur additional environmental remediation costs in connection with these development projects. However, potential additional environmental costs for these development projects cannot be reasonably estimated at this time and certain changes in estimates could occur as the site conditions, final project timing, design elements, actual soil conditions, and other aspects of the projects, which may depend upon municipal and other approvals beyond the control of the Company, are determined.\n\nOther than the accrued environmental liabilities discussed above, we are not aware of any unasserted claims and assessments with respect to an environmental liability or an asset retirement obligation that we believe would require additional disclosure or the recording of an additional loss contingency.\n\nLitigation\n\nWe and our properties are subject to litigation arising in the ordinary course of business. To our knowledge, neither we nor any of our properties are presently subject to any litigation or threat of litigation which, if determined unfavorably to us, would have a material adverse effect on our cash flows, financial condition, or results of operations.\n\nInsurance\n\nWe maintain comprehensive insurance coverage for our real estate portfolio, including commercial general liability, property, environmental, rental income, and specialty risk policies covering all properties. Management believes the policy specifications and insured limits are reasonable given the relative risk of loss, the cost of the coverage, and industry practice. We do not carry insurance for generally uninsurable losses such as loss from\n\nF - 47\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\ngovernmental action, nuclear hazard, and war and military action. Policies are subject to various terms, conditions, and exclusions and some policies may involve large deductibles or co-payments.\n\n18.    Fair Value Measurements and Disclosures\n\nThe only assets we record at fair value on a recurring basis in our consolidated financial statements are the marketable securities related to our Deferred Compensation Plan (See Note 15 “Employee Benefit Plans” for additional information). The following table sets forth the fair value of our Deferred Compensation Plan:\n\nFair Value (Level 1) (1)\n\nDecember 31, 2025December 31, 2024\n\nDescription(in thousands)\n\nDeferred Compensation Plan assets (2)\n$30,807 $27,965 \n\n____________________\n\n(1)Based on quoted prices in active markets for identical securities.\n\n(2)The Deferred Compensation Plan assets are held in a limited rabbi trust.\n\nFinancial Instruments Disclosed at Fair Value\n\nThe following table sets forth the carrying value and the fair value of our other financial instruments: \n\nDecember 31, 2025December 31, 2024\n\nCarrying Value\nFair Value\nCarrying Value\nFair Value\n\n(in thousands)\n\nLiabilities\n\nSecured debt, net$592,685 $587,244 $598,199 $569,061 \n\nUnsecured debt, net$3,996,774 $3,834,485 $3,999,566 $3,681,914 \n\nFair value is calculated using Level 2 inputs, which are based on model-derived valuations in which significant inputs and significant value drivers are observable in active markets.\n\nF - 48\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n19.    Net Income Available to Common Stockholders Per Share of the Company\n\nThe following table reconciles the numerator and denominator in computing the Company’s basic and diluted per-share computations for net income available to common stockholders:\n\nYear Ended December 31,\n\n202520242023\n\n(in thousands, except share and per share amounts)\n\nNumerator:\n\nNet income available to common stockholders$276,121 $210,969 $212,241 \n\nAllocation to participating securities (1)\n(925)(1,967)(1,233)\n\nNumerator for basic and diluted net income available to common stockholders$275,196 $209,002 $211,008 \n\nDenominator: \n\nBasic weighted average vested shares outstanding118,278,990 117,649,111 117,160,173 \n\nEffect of dilutive securities 553,045 507,876 346,082 \n\nDiluted weighted average vested shares and common stock equivalents outstanding118,832,035 118,156,987 117,506,255 \n\nBasic earnings per share: \n\nNet income available to common stockholders per share$2.33 $1.78 $1.80 \n\nDiluted earnings per share: \n\nNet income available to common stockholders per share$2.32 $1.77 $1.80 \n\n_____________________ \n\n(1)Participating securities include certain time-based RSUs and vested market measure-based RSUs.\n\nShare-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities. The impact of potentially dilutive common shares, including RSUs, are considered in our diluted earnings per share calculation for the years ended December 31, 2025, 2024, and 2023. Certain performance-based RSUs are not included in dilutive securities as of December 31, 2025, 2024, and 2023 as not all performance metrics had been met by the end of the applicable reporting periods. Additionally, certain unvested time-based RSUs are not included in dilutive securities for the year ended December 31, 2023 as they were anti-dilutive.\n\nSee Note 14 “Share-Based and Other Compensation” for additional information regarding the RSUs.\n\nF - 49\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n20.    Net Income Available to Common Unitholders Per Unit of the Operating Partnership\n\nThe following table reconciles the numerator and denominator in computing the Operating Partnership’s basic and diluted per-unit computations for net income available to common unitholders:\n\nYear Ended December 31,\n\n202520242023\n\n(in thousands, except unit and per unit amounts)\n\nNumerator:\n\nNet income available to common unitholders$278,803 $213,031 $214,324 \n\nAllocation to participating securities (1)\n(925)(1,967)(1,233)\n\nNumerator for basic and diluted net income available to common unitholders$277,878 $211,064 $213,091 \n\nDenominator: \n\nBasic weighted average vested units outstanding119,428,865 118,799,685 118,310,747 \n\nEffect of dilutive securities553,045 507,876 346,082 \n\nDiluted weighted average vested units and common unit equivalents outstanding119,981,910 119,307,561 118,656,829 \n\nBasic earnings per unit:\n\nNet income available to common unitholders per unit$2.33 $1.78 $1.80 \n\nDiluted earnings per unit: \n\nNet income available to common unitholders per unit$2.32 $1.77 $1.80 \n\n____________________ \n\n(1)Participating securities include certain time-based RSUs and vested market measure-based RSUs.\n\nShare-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities. The impact of potentially dilutive common units, including RSUs, are considered in our diluted earnings per share calculation for the years ended December 31, 2025, 2024, and 2023. Certain performance-based RSUs are not included in dilutive securities as of December 31, 2025, 2024, and 2023 as not all performance metrics had been met by the end of the applicable reporting periods. Additionally, certain unvested time-based RSUs are not included in dilutive securities for the year ended December 31, 2023 as they were anti-dilutive.\n\nSee Note 14 “Share-Based and Other Compensation” for additional information regarding the RSUs.\n\nF - 50\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n21.    Supplemental Cash Flows Information of the Company and the Operating Partnership\n\nSupplemental cash flows information of the Company is as follows:\n\nYear Ended December 31,\n\n202520242023\n\n(in thousands)\n\nSUPPLEMENTAL CASH FLOWS INFORMATION:\n\nCash paid for interest, net of capitalized interest of $79,542, $77,871, and $74,052 as of\n\n   December 31, 2025, 2024, and 2023, respectively\n$115,912 $126,668 $105,767 \n\nCash paid for amounts included in the measurement of ground lease liabilities$7,578 $6,484 $6,733 \n\nNON-CASH INVESTING TRANSACTIONS:\n\nAccrual for expenditures for operating properties and development and redevelopment properties$62,570 $54,190 $95,575 \n\nTenant improvements funded directly by tenants$3,026 $2,745 $7,364 \n\nRemeasurement of ground lease liability and related right of use ground lease asset$— $4,782 $— \n\nNON-CASH FINANCING TRANSACTIONS:\n\nAccrual of dividends and distributions payable to common stockholders and common\n\n    unitholders (Note 12)\n$65,009 $64,850 $64,440 \n\nSupplemental cash flows information of the Operating Partnership is as follows:\n\n \nYear Ended December 31,  \n\n 202520242023\n\n(in thousands)\n\nSUPPLEMENTAL CASH FLOWS INFORMATION:\n\nCash paid for interest, net of capitalized interest of $79,542, $77,871, and $74,052 as of\n\nDecember 31, 2025, 2024, and 2023, respectively\n$115,912 $126,668 $105,767 \n\nCash paid for amounts included in the measurement of ground lease liabilities$7,578 $6,484 $6,733 \n\nNON-CASH INVESTING TRANSACTIONS:\n\nAccrual for expenditures for operating properties and development and redevelopment properties$62,570 $54,190 $95,575 \n\nTenant improvements funded directly by tenants$3,026 $2,745 $7,364 \n\nRemeasurement of ground lease liability and related right of use ground lease asset$— $4,782 $— \n\nNON-CASH FINANCING TRANSACTIONS:\n\nAccrual of distributions payable to common unitholders (Note 13)\n$65,009 $64,850 $64,440 \n\nF - 51\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n22.    Tax Treatment of Distributions\n\nThe following table reconciles the dividends declared per share of common stock to the dividends paid per share of common stock as follows: \n\nYear Ended December 31,\n\nDividends202520242023\n\nDividends declared per share of common stock$2.16 $2.16 $2.16 \n\nLess: Dividends declared in the current year and paid in the following year(0.54)(0.54)(0.54)\n\nAdd: Dividends declared in the prior year and paid in the current year0.54 0.54 0.54 \n\nDividends paid per share of common stock$2.16 $2.16 $2.16 \n\nThe unaudited income tax treatment for the dividends to common stockholders reportable as identified in the table above was as follows: \n\nYear Ended December 31,\n\nShares of Common Stock202520242023\n\nOrdinary dividend (1) (2)\n$1.43 66.34 %$1.92 88.75 %$2.09 96.67 %\n\nReturn of capital0.25 11.62 %0.24 11.02 %0.07 3.21 %\n\nCapital gains\n0.04 1.76 %0.01 0.23 %— 0.12 %\n\nUnrecaptured section 1250 gains0.44 20.28 %— — %— — %\n\n$2.16 100.00 %$2.16 100.00 %$2.16 100.00 %\n\n____________________\n\n(1)Total qualified dividend, which is a subset of, and is included in, the Ordinary dividend amount.\n\n(2)The Tax Cuts and Jobs Act enacted on December 22, 2017 generally allows a deduction for noncorporate taxpayers equal to 20% of ordinary dividends distributed by a REIT (excluding capital gain dividends and qualified dividend income). The amount of dividend eligible for this deduction is referred to as the Section 199A Dividend. For the year ended December 31, 2025, the Section 199A Dividend is equal to the total ordinary income dividend.\n\nF - 52\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)\n\n23.    Segments\n\nOperating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”). The CODM decides how resources are allocated and assesses performance on a recurring basis, at least quarterly. Our CODM is our CEO, who evaluates the operating performance and financial results of our consolidated portfolio based on Net Income through monthly operations meetings.\n\nWe conduct our business on a consolidated basis in one operating segment and therefore have one reportable segment. Asset information by segment is not reported because the Company does not use this measure to assess performance.\n\nOur reportable segment derives its revenues primarily from rental revenue and related property income through the leasing of commercial real estate space to tenants. We recognize revenue from base rent (fixed lease payments), additional rent (variable lease payments, which consist of amounts due from tenants for common area maintenance, real estate taxes, percentage rent, and other recoverable costs), parking, and other lease-related revenue.\n\nThe following table presents Net Income:\n\nYear Ended December 31,\n\n202520242023\n\n(in thousands)\n\nREVENUES:\n\nRental income$1,093,587 $1,118,115 $1,117,737 \n\nOther property income19,080 17,514 11,957 \n\nTotal revenues1,112,667 1,135,629 1,129,694 \n\nEXPENSES:\n\nProperty expenses 243,726 243,441 228,964 \n\nReal estate taxes 107,564 108,951 105,868 \n\nGround leases12,048 11,715 9,732 \n\nGeneral and administrative expenses73,108 71,074 94,264 \n\nLeasing costs 10,352 8,764 6,506 \n\nDepreciation and amortization354,854 356,182 355,278 \n\nTotal expenses801,652 800,127 800,612 \n\nOTHER INCOME (EXPENSES):\n\nInterest income\n6,970 37,752 22,592 \n\nInterest expense(126,292)(145,287)(114,216)\n\nOther income (expense)\n168 (992)830 \n\nGains on sales of depreciable operating properties127,038 — — \n\nImpairment of real estate assets\n(16,259)— — \n\nGain on sale of long-lived assets\n— 5,979 — \n\nTotal other expenses\n(8,375)(102,548)(90,794)\n\nNET INCOME$302,640 $232,954 $238,288 \n\nF - 53\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nSCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS\n\nYears ended December 31, 2025, 2024, and 2023\n\n(in thousands)\n\n \n\n Balance at\nBeginning\nof Period\nCharged to\n\nCosts and\n\nExpenses (1)\n\nDeductions (2)\nBalance\nat End\nof Period\n\nAllowance for Uncollectible Tenant Receivables for the year ended\nDecember 31,\n\n2025 – Allowance for uncollectible tenant receivables$314 $420 $(490)$244 \n\n2024 – Allowance for uncollectible tenant receivables$1,567 $374 $(1,627)$314 \n\n2023 – Allowance for uncollectible tenant receivables$2,233 $1,524 $(2,190)$1,567 \n\nAllowance for Deferred Rent Receivables for the year ended\nDecember 31,\n\n2025 – Allowance for deferred rent$— $1 $(1)$— \n\n2024 – Allowance for deferred rent$728 $— $(728)$— \n\n2023 – Allowance for deferred rent$965 $667 $(904)$728 \n\n____________________\n\n(1)Amounts do not reflect leases deemed not probable of collection for which we reversed the associated revenue under Topic 842. Also does not reflect the adjustment to restore leases previously deemed not probable of collection to an accrual basis.\n\n(2)For the year ended December 31, 2024, includes reversals of allowance for doubtful accounts for tenants with an allowance at January 1, 2024, that were subsequently deemed not probable of collection and transitioned to a cash basis of reporting within the same year.\n\nF - 54\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P\n\nSCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION\n\nDecember 31, 2025\n\n Initial CostGross Amounts at Which\nCarried at Close of Period\n\nProperty LocationEncumb-\nrancesLand and Improve-\nmentsBuildings\nand\nImprove-\nmentsCosts\nCapitalized\nSubsequent \nto\nAcquisition/\nImprovementLand and Improve-\nmentsBuildings\nand\nImprove-\nmentsTotalAccumulated\nDepreciation\nDepreci-\n\nation\n\nLife (1)\n\nDate of\n\nAcquisition\n\n(A)/\n\nConstruction\n\n(C) (2)\n\nRentable\n\nSquare\n\nFeet (3)\n\n(unaudited)\n\n ($ in thousands)\n\nCommercial Real Estate Properties:\n\n335 - 345 N. Maple Dr., Beverly Hills, CA (4)\n$28,986 $154,148 $305 $28,986 $154,453 $183,439 $2,356 352025A306,366 \n\n3101 - 3243 S. La Cienega Blvd., Culver City, CA150,718 31,033 8,524 150,718 39,557 190,275 29,276 352019A166,207 \n\n2240 E. Imperial Highway, El Segundo, CA1,044 11,763 30,740 1,048 42,499 43,547 33,616 351983C122,870 \n\n2250 E. Imperial Highway, El Segundo, CA2,579 29,062 38,157 2,547 67,251 69,798 63,889 351983C298,728 \n\n2260 E. Imperial Highway, El Segundo, CA2,518 28,370 38,003 2,547 66,344 68,891 29,746 352012C298,728 \n\n909 N. Pacific Coast Highway, El Segundo, CA3,577 34,042 60,611 3,565 94,665 98,230 61,673 352005C244,880 \n\n999 N. Pacific Coast Highway, El Segundo, CA1,407 34,326 19,308 1,407 53,634 55,041 37,781 352003C138,389 \n\n3750 Kilroy Airport Way, Long Beach, CA— 1,941 13,718 — 15,659 15,659 13,660 351989C10,718 \n\n3760 Kilroy Airport Way, Long Beach, CA— 17,467 24,161 — 41,628 41,628 35,657 351989C166,761 \n\n3780 Kilroy Airport Way, Long Beach, CA— 22,319 41,190 — 63,509 63,509 53,312 351989C221,452 \n\n3800 Kilroy Airport Way, Long Beach, CA— 19,408 25,856 — 45,264 45,264 35,231 352000C192,476 \n\n3840 Kilroy Airport Way, Long Beach, CA— 13,586 33,409 — 46,995 46,995 25,243 351999C138,441 \n\n3880 Kilroy Airport Way, Long Beach, CA— 9,704 18,398 — 28,102 28,102 8,721 352013C96,922 \n\n3900 Kilroy Airport Way, Long Beach, CA— 12,615 23,741 — 36,356 36,356 24,566 351997A130,935 \n\n1350 Ivar Ave., Los Angeles, CA (5)\n1,575 — 14,276 1,575 14,276 15,851 2,104 352020C16,448 \n\n1355 Vine St., Los Angeles, CA (5)\n17,588 — 120,294 17,588 120,294 137,882 18,232 352020C183,129 \n\n1375 Vine St., Los Angeles, CA (5)\n15,578 — 103,368 15,578 103,368 118,946 15,626 352020C159,236 \n\n1395 Vine St., Los Angeles, CA (5)\n278 — 3,261 278 3,261 3,539 481 352020C2,575 \n\n1500 N. El Centro Ave., Los Angeles, CA (6)\n9,235 21 64,156 9,235 64,177 73,412 21,890 352016C113,447 \n\n1525 N. Gower St., Los Angeles, CA (6)\n1,318 3 9,774 1,318 9,777 11,095 3,374 352016C9,610 \n\n1575 N. Gower St., Los Angeles, CA (6)\n22,153 51 120,294 22,153 120,345 142,498 33,933 352016C264,430 \n\n6115 W. Sunset Blvd., Los Angeles, CA (6)\n1,313 3 17,259 2,455 16,120 18,575 6,235 352015C26,238 \n\n6121 W. Sunset Blvd., Los Angeles, CA (6)\n11,120 4,256 42,373 8,703 49,046 57,749 14,678 352015C93,418 \n\n8560 W. Sunset Blvd., West Hollywood, CA9,720 50,956 8,435 9,720 59,391 69,111 19,995 352016A76,359 \n\n8570 W. Sunset Blvd., West Hollywood, CA31,693 27,974 7,277 31,693 35,251 66,944 12,137 352016A49,276 \n\n8580 W. Sunset Blvd., West Hollywood, CA10,013 3,695 1,844 10,013 5,539 15,552 2,047 352016A6,875 \n\n8590 W. Sunset Blvd., West Hollywood, CA39,954 27,884 6,157 39,954 34,041 73,995 11,092 352016A56,750 \n\n12100 W. Olympic Blvd., Los Angeles, CA352 45,611 30,156 9,633 66,486 76,119 41,670 352003C155,679 \n\n12200 W. Olympic Blvd., Los Angeles, CA4,329 35,488 32,085 3,977 67,925 71,902 52,690 352000C154,544 \n\n12233 W. Olympic Blvd., Los Angeles, CA22,100 53,170 7,147 22,100 60,317 82,417 25,998 352012A156,746 \n\n12312 W. Olympic Blvd., Los Angeles, CA3,325 12,202 12,741 3,399 24,869 28,268 21,516 351997A78,900 \n\n2100/2110 Colorado Ave., Santa Monica, CA5,474 26,087 21,796 5,476 47,881 53,357 35,412 351997A104,853 \n\n12225 El Camino Real, San Diego, CA1,700 9,633 4,890 1,673 14,550 16,223 11,750 351998A58,401 \n\n12235 El Camino Real, San Diego, CA1,507 8,543 10,461 1,540 18,971 20,511 15,572 351998A53,751 \n\nF - 55\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nSCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION – (Continued)\n\nDecember 31, 2025\n\n Initial CostGross Amounts at Which\nCarried at Close of Period\n\nProperty LocationEncumb-\nrancesLand and Improve-\nmentsBuildings\nand\nImprove-\nmentsCosts\nCapitalized\nSubsequent \nto\nAcquisition/\nImprovementLand and Improve-\nmentsBuildings\nand\nImprove-\nmentsTotalAccumulated\nDepreciation\nDepreci-\n\nation\n\nLife (1)\n\nDate of\n\nAcquisition\n\n(A)/\n\nConstruction\n\n(C) (2)\n\nRentable\n\nSquare\n\nFeet (3)\n\n(unaudited)\n\n ($ in thousands)\n\n12340 El Camino Real, San Diego, CA4,201 — 40,640 4,201 40,640 44,841 6,474 352022C110,950 \n\n12390 El Camino Real, San Diego, CA3,453 11,981 12,910 3,453 24,891 28,344 16,959 352000C73,238 \n\n12770 El Camino Real, San Diego, CA9,360 — 37,329 9,360 37,329 46,689 10,747 352016C75,035 \n\n12780 El Camino Real, San Diego, CA18,398 54,954 24,329 18,398 79,283 97,681 35,624 352013A140,591 \n\n12790 El Camino Real, San Diego, CA10,252 21,236 17,163 10,252 38,399 48,651 16,560 352013A87,944 \n\n12830 El Camino Real, San Diego, CA $375,000(7)28,645 — 113,232 28,645 113,232 141,877 20,696 352021C196,444 \n\n12860 El Camino Real, San Diego, CA(7)11,326 — 53,257 11,326 53,257 64,583 9,658 352021C92,042 \n\n12348 High Bluff Dr., San Diego, CA1,629 3,096 10,270 1,629 13,366 14,995 10,115 351999C39,192 \n\n12400 High Bluff Dr., San Diego, CA15,167 — 50,063 15,167 50,063 65,230 14,629 352022C216,518 \n\n12707 High Bluff Dr., San Diego, CA3,013 8,032 1,400 3,013 9,432 12,445 775 352024A59,245 \n\n12777 High Bluff Dr., San Diego, CA3,013 6,134 782 3,013 6,916 9,929 573 352024A44,486 \n\n3579 Valley Centre Dr., San Diego, CA2,167 6,897 11,977 2,858 18,183 21,041 13,286 351999C54,960 \n\n3611 Valley Centre Dr., San Diego, CA4,184 19,352 29,823 5,259 48,100 53,359 37,365 352000C132,425 \n\n3661 Valley Centre Dr., San Diego, CA4,038 21,144 21,366 4,725 41,823 46,548 33,190 352001C124,756 \n\n3721 Valley Centre Dr., San Diego, CA4,297 18,967 19,934 4,254 38,944 43,198 25,998 352003C117,777 \n\n3811 Valley Centre Dr., San Diego, CA3,452 16,152 22,042 4,457 37,189 41,646 29,027 352000C118,912 \n\n3745 Paseo Place, San Diego, CA (Retail)(7)24,358 — 76,879 24,358 76,879 101,237 16,296 352019C95,871 \n\n2100 Kettner Blvd., San Diego, CA19,861 — 113,891 19,861 113,891 133,752 10,557 352022C212,915 \n\n2305 Historic Decatur Rd., San Diego, CA5,240 22,220 12,114 5,240 34,334 39,574 19,661 352010A107,456 \n\n3530 John Hopkins Ct., San Diego, CA (8)\n4,225 31,258 332 4,262 31,553 35,815 190 352025A45,589 \n\n3535 General Atomics Ct., San Diego, CA (8)\n7,433 43,774 465 7,499 44,173 51,672 193 352025A80,543 \n\n3550 John Hopkins Ct., San Diego, CA (8)\n5,598 33,443 347 5,647 33,741 39,388 112 352025A62,739 \n\n3565 General Atomics Ct., San Diego, CA (8)\n4,057 24,355 253 4,093 24,572 28,665 84 352025A43,295 \n\n4690 Executive Dr., San Diego, CA (9)\n1,623 19,686 1,368 1,624 21,053 22,677 1,447 352025C52,074 \n\n9455 Towne Centre Dr., San Diego, CA6,081 — 79,595 6,081 79,595 85,676 12,233 352021C160,444 \n\n9514 Towne Centre Dr., San Diego, CA4,928 — 47,756 4,928 47,756 52,684 3,451 352023C70,616 \n\n4100 Bohannon Dr., Menlo Park, CA4,835 15,526 1,525 4,860 17,026 21,886 7,743 352012A47,643 \n\n4200 Bohannon Dr., Menlo Park, CA4,798 15,406 8,414 4,662 23,956 28,618 11,723 352012A43,600 \n\n4300 Bohannon Dr., Menlo Park, CA6,527 20,958 8,047 6,470 29,062 35,532 14,265 352012A63,430 \n\n4400 Bohannon Dr., Menlo Park, CA (10)\n4,939 43,213 3,115 4,939 46,328 51,267 2,589 352025C48,414 \n\n4500 Bohannon Dr., Menlo Park, CA6,527 20,957 6,035 6,470 27,049 33,519 12,920 352012A63,429 \n\n4600 Bohannon Dr., Menlo Park, CA4,798 15,406 5,424 4,939 20,689 25,628 10,692 352012A48,413 \n\n4700 Bohannon Dr., Menlo Park, CA6,527 20,958 1,576 6,470 22,591 29,061 10,384 352012A63,429 \n\n1290 - 1300 Terra Bella Ave., Mountain View, CA28,730 27,555 13,522 28,730 41,077 69,807 13,628 352016A114,175 \n\n680 E. Middlefield Rd., Mountain View, CA34,755 — 56,759 34,755 56,759 91,514 21,383 352014C171,676 \n\nF - 56\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nSCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION – (Continued)\n\nDecember 31, 2025\n\n Initial CostGross Amounts at Which\nCarried at Close of Period\n\nProperty LocationEncumb-\nrancesLand and Improve-\nmentsBuildings\nand\nImprove-\nmentsCosts\nCapitalized\nSubsequent \nto\nAcquisition/\nImprovementLand and Improve-\nmentsBuildings\nand\nImprove-\nmentsTotalAccumulated\nDepreciation\nDepreci-\n\nation\n\nLife (1)\n\nDate of\n\nAcquisition\n\n(A)/\n\nConstruction\n\n(C) (2)\n\nRentable\n\nSquare\n\nFeet (3)\n\n(unaudited)\n\n ($ in thousands)\n\n690 E. Middlefield Rd., Mountain View, CA34,605 — 56,515 34,605 56,515 91,120 21,291 352014C171,215 \n\n1701 Page Mill Rd., Palo Alto, CA— 99,522 117 — 99,639 99,639 27,030 352016A128,688 \n\n3150 Porter Dr., Palo Alto, CA— 21,715 6,446 — 28,161 28,161 8,888 352016A36,886 \n\n900 Jefferson Ave., Redwood City, CA (11)\n16,668 — 109,784 18,063 108,389 126,452 38,994 352015C228,226 \n\n900 Middlefield Rd., Redwood City, CA (11)\n7,959 — 64,979 8,626 64,312 72,938 19,269 352015C119,616 \n\n100 First St., San Francisco, CA (12)\n49,150 131,238 86,415 49,150 217,653 266,803 125,428 352010A480,457 \n\n100 Hooper St., San Francisco, CA148,815 (13)78,564 — 197,034 85,510 190,088 275,598 41,819 352018C417,914 \n\n201 Third St., San Francisco, CA19,260 84,018 85,856 19,260 169,874 189,134 109,440 352011A355,960 \n\n360 Third St., San Francisco, CA— 88,235 128,912 28,504 188,643 217,147 87,745 352011A436,357 \n\n250 Brannan St., San Francisco, CA7,630 22,770 10,797 7,630 33,567 41,197 17,628 352011A100,850 \n\n301 Brannan St., San Francisco, CA5,910 22,450 17,817 5,910 40,267 46,177 19,487 352011A82,834 \n\n333 Brannan St., San Francisco, CA18,645 — 80,685 18,645 80,685 99,330 23,730 352016C185,602 \n\n345 Brannan St., San Francisco, CA29,405 113,179 1,358 29,403 114,539 143,942 23,665 352018A110,050 \n\n303 Second St., San Francisco, CA (14)\n63,550 154,153 123,735 63,550 277,888 341,438 159,024 352010A784,658 \n\n350 Mission St., San Francisco, CA52,815 — 212,906 52,815 212,906 265,721 64,520 352016C455,340 \n\n345 Oyster Point Blvd., South San Francisco, CA13,745 18,575 1 13,745 18,576 32,321 4,504 352018A40,410 \n\n347 Oyster Point Blvd., South San Francisco, CA14,071 18,289 44 14,071 18,333 32,404 4,455 352018A39,780 \n\n349 Oyster Point Blvd., South San Francisco, CA23,112 22,601 352 23,112 22,953 46,065 6,824 352018A65,340 \n\n350 Oyster Point Blvd., South San Francisco, CA23,719 — 177,047 23,719 177,047 200,766 22,614 352021C234,892 \n\n352 Oyster Point Blvd., South San Francisco, CA23,449 — 165,524 23,449 165,524 188,973 23,061 352021C232,215 \n\n354 Oyster Point Blvd., South San Francisco, CA19,538 — 141,063 19,538 141,063 160,601 22,126 352021C193,472 \n\n365 Oyster Point Blvd., South San Francisco, CA (15)\n— — — — — — 62 350C— \n\n10900 NE 4th St., Bellevue, WA25,080 150,877 66,352 25,080 217,229 242,309 106,671 352012A428,557 \n\n601 108th Ave., Bellevue, WA— 214,095 99,439 42,680 270,854 313,534 136,292 352011A490,738 \n\n2001 8th Ave., Seattle, WA84,076 371,154 36,691 84,076 407,845 491,921 53,879 352021A535,395 \n\n320 Westlake Ave. North, Seattle, WA76,627 (16)14,710 82,018 16,653 14,710 98,671 113,381 41,086 352013A184,644 \n\n321 Terry Ave. North, Seattle, WA(16)10,430 60,003 11,066 10,430 71,069 81,499 30,777 352013A135,755 \n\n401 Terry Ave. North, Seattle, WA22,500 77,046 235 22,500 77,281 99,781 28,806 352014A174,530 \n\n333 Dexter Ave. North, Seattle, WA42,854 — 328,064 42,854 328,064 370,918 48,068 352022C618,766 \n\n701 N. 34th St., Seattle, WA— 48,027 16,696 — 64,723 64,723 28,986 352012A143,136 \n\n801 N. 34th St., Seattle, WA— 58,537 23,925 — 82,462 82,462 37,188 352012A173,615 \n\n837 N. 34th St., Seattle, WA— 37,404 8,619 — 46,023 46,023 21,410 352012A112,487 \n\n200 W. 6th St., Austin, TX— — 664,974 — 664,974 664,974 60,117 352023C758,975 \n\nResidential Properties:\n\n1550 N. El Centro Ave., Los Angeles, CA (6)\n16,970 39 139,686 16,970 139,725 156,695 38,230 352016C— \n\nF - 57\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nSCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION – (Continued)\n\nDecember 31, 2025\n\n Initial CostGross Amounts at Which\nCarried at Close of Period\n\nProperty LocationEncumb-\nrancesLand and Improve-\nmentsBuildings\nand\nImprove-\nmentsCosts\nCapitalized\nSubsequent \nto\nAcquisition/\nImprovementLand and Improve-\nmentsBuildings\nand\nImprove-\nmentsTotalAccumulated\nDepreciation\nDepreci-\n\nation\n\nLife (1)\n\nDate of\n\nAcquisition\n\n(A)/\n\nConstruction\n\n(C) (2)\n\nRentable\n\nSquare\n\nFeet (3)\n\n(unaudited)\n\n ($ in thousands)\n\n6390 De Longpre Ave., Los Angeles, CA (5)\n12,112 — 162,693 12,112 162,693 174,805 22,108 352021C— \n\n3200 Paseo Village Way, San Diego, CA(7)106,419 — 272,319 106,419 272,319 378,738 46,203 352020C— \n\nTOTAL OPERATING PROPERTIES600,442 1,550,535 3,163,966 5,432,898 1,641,913 8,505,486 10,147,399 2,843,811 16,292,164 \n\nUndeveloped land and construction in progress— 787,640 — 1,600,102 787,640 1,600,102 2,387,742 — — \n\nTOTAL ALL PROPERTIES$600,442 (17)$2,338,175 $3,163,966 $7,033,000 $2,429,553 $10,105,588 $12,535,141 $2,843,811 16,292,164 \n\n____________________\n\n(1)The initial costs of buildings and improvements are depreciated over 35 years using a straight-line method of accounting; improvements capitalized subsequent to acquisition or development are depreciated over the shorter of the lease term or useful life, generally ranging from one to 20 years.\n\n(2)Represents our date of construction or acquisition, or of our predecessor, the Kilroy Group.\n\n(3)Represents the square footage of our stabilized portfolio.\n\n(4)This property was acquired in the third quarter of 2025.\n\n(5)These properties include the allocated costs of a shared parking structure for a complex comprised of four office buildings and one residential tower.\n\n(6)These properties include the allocated costs of a shared parking structure for a complex comprised of five office buildings and one residential tower.\n\n(7)These properties secure a $375.0 million mortgage note.\n\n(8)These properties were acquired in the fourth quarter of 2025.\n\n(9)This property was taken out of the stabilized portfolio in the first quarter of 2022 for redevelopment in phases, and placed back into the stabilized portfolio during the third quarter of 2025, upon reaching one year from substantial completion of base building components.\n\n(10)This property was taken out of the stabilized portfolio in the fourth quarter of 2022 for redevelopment, and placed back into the stabilized portfolio during the third quarter of 2025, upon reaching one year from substantial completion of base building components.\n\n(11)These properties are owned by Redwood City Partners LLC, a consolidated property partnership.\n\n(12)This property is owned by 100 First Street Member LLC, a consolidated property partnership.\n\n(13)This property secures a $148.8 million mortgage note.\n\n(14)This property is owned by 303 Second Street Member LLC, a consolidated property partnership.\n\n(15)This property is currently in the tenant improvement phase of our in-process development projects and not yet in the stabilized portfolio. The estimated rentable square feet for this property is 871,738 rentable square feet.\n\n(16)These properties secure a $76.6 million mortgage note.\n\n(17)Represents gross aggregate principal amount before the effect of the deferred financing costs of $7.8 million as of December 31, 2025.\n\nF - 58\n\nKILROY REALTY CORPORATION AND KILROY REALTY, L.P.\n\nSCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION – (Continued)\n\nDecember 31, 2025\n\nAs of December 31, 2025, the aggregate gross cost of property included above for federal income tax purposes approximated $10.6 billion.\n\nThe following table reconciles the historical cost of total real estate held for investment from January 1, 2023 to December 31, 2025:\n\n Year Ended December 31,\n\n 202520242023\n\n (in thousands)\n\nTotal real estate held for investment, beginning of year$12,659,195 $12,241,648 $11,732,183 \n\nAdditions during period:\n\nAcquisitions338,678 21,941 — \n\nImprovements, etc.  249,704 400,880 511,866 \n\nTotal additions during period588,382 422,821 511,866 \n\nDeductions during period:\n\nCost of real estate sold(483,776)— — \n\nProperties held for sale(221,693)— — \n\nOther(6,967)(5,274)(2,401)\n\nTotal deductions during period(712,436)(5,274)(2,401)\n\nTotal real estate held for investment, end of year$12,535,141 $12,659,195 $12,241,648 \n\nThe following table reconciles the accumulated depreciation from January 1, 2023 to December 31, 2025:\n\n Year Ended December 31,\n\n 202520242023\n\n (in thousands)\n\nAccumulated depreciation, beginning of year$2,824,616 $2,518,304 $2,218,710 \n\nAdditions during period:\n\nDepreciation of real estate305,751 307,967 300,119 \n\nTotal additions during period305,751 307,967 300,119 \n\nDeductions during period:\n\nWrite-offs due to sale(166,696)— — \n\nProperties held for sale(116,693)— — \n\nOther (3,167)(1,655)(525)\n\nTotal deductions during period(286,556)(1,655)(525)\n\nAccumulated depreciation, end of year$2,843,811 $2,824,616 $2,518,304 \n\nF - 59"}