# KILROY REALTY CORP (KRC)

Informational only - not investment advice.

CIK: 0001025996
SIC: 6798 Real Estate Investment Trusts
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6798 Real Estate Investment Trusts](/industry/6798/)
Latest 10-K filed: 2026-02-11
SEC page: https://www.sec.gov/edgar/browse/?CIK=1025996
Filing source: https://www.sec.gov/Archives/edgar/data/1025996/000162828026007051/krc-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-11 · accession 0001628280-26-007051 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001025996.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,112,667,000 USD | 2025 | verified |
| Net income | 302,640,000 USD | 2025 | verified |
| Assets | 10,915,076,000 USD | 2025 | verified |
| Free cash flow | 450,288,000 USD | 2025 | computed |
| Net margin | 27.20% | 2025 | computed |
| Revenue YoY | -2.02% | 2025 | computed |
| ROE | 5.58% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | KRC | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 27.2% | 16.8% | 66 | 149 |
| Revenue growth | -2.0% | 3.7% | 27 | 149 |
| FCF margin | 40.5% | 21.8% | 83 | 70 |
| ROE | 5.6% | 5.7% | 47 | 151 |
| ROA | 2.8% | 1.5% | 64 | 155 |
| Liabilities / equity | 0.97 | 1.48 | 31 | 151 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6798 Real Estate Investment Trusts, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1112667000 | USD | 2025 | 2026-02-11 |
| Net income | 302640000 | USD | 2025 | 2026-02-11 |
| Assets | 10915076000 | USD | 2025 | 2026-02-11 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001025996.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  | 719,001,000 | 747,298,000 | 837,454,000 | 898,397,000 | 955,040,000 | 1,096,987,000 | 1,129,694,000 | 1,135,629,000 | 1,112,667,000 |
| Net income |  | 238,604,000 |  | 180,615,000 | 277,926,000 | 215,229,000 | 207,293,000 | 658,910,000 | 259,493,000 | 238,288,000 | 232,954,000 | 302,640,000 |
| Diluted EPS |  | 2.42 |  | 1.51 | 2.55 | 1.86 | 1.63 | 5.36 | 1.97 | 1.80 | 1.77 | 2.32 |
| Operating cash flow |  | 272,008,000 |  | 347,012,000 | 410,043,000 | 386,521,000 | 455,590,000 | 516,403,000 | 592,235,000 | 602,589,000 | 541,149,000 | 566,313,000 |
| Capital expenditures |  | 99,557,000 |  | 88,425,000 | 166,440,000 | 147,687,000 | 129,500,000 | 120,611,000 | 92,802,000 | 97,393,000 | 100,303,000 | 116,025,000 |
| Dividends paid |  | 126,839,000 |  | 340,697,000 | 179,411,000 | 196,252,000 | 224,578,000 | 237,355,000 | 247,556,000 | 255,430,000 | 256,306,000 | 257,861,000 |
| Assets | 5,633,736,000 | 5,939,469,000 |  |  | 7,765,707,000 | 8,900,094,000 | 10,000,708,000 | 10,583,397,000 | 10,796,987,000 | 11,401,045,000 | 10,898,357,000 | 10,915,076,000 |
| Liabilities | 2,909,800,000 | 2,704,883,000 |  |  | 3,564,446,000 | 4,329,236,000 | 4,723,387,000 | 4,893,527,000 | 5,122,026,000 | 5,741,352,000 | 5,289,488,000 | 5,277,333,000 |
| Stockholders' equity | 2,666,210,000 | 3,170,966,000 |  |  | 3,929,907,000 | 4,293,510,000 | 5,029,943,000 | 5,440,060,000 | 5,437,047,000 | 5,428,161,000 | 5,382,046,000 | 5,420,807,000 |
| Cash and cash equivalents |  |  | 193,418,000 | 57,649,000 | 51,604,000 | 60,044,000 | 731,991,000 | 414,077,000 | 347,379,000 | 510,163,000 | 165,690,000 | 179,316,000 |
| Free cash flow |  | 172,451,000 |  | 258,587,000 | 243,603,000 | 238,834,000 | 326,090,000 | 395,792,000 | 499,433,000 | 505,196,000 | 440,846,000 | 450,288,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  | 25.12% | 37.19% | 25.70% | 23.07% | 68.99% | 23.66% | 21.09% | 20.51% | 27.20% |
| Return on equity |  | 7.52% |  |  | 7.07% | 5.01% | 4.12% | 12.11% | 4.77% | 4.39% | 4.33% | 5.58% |
| Return on assets |  | 4.02% |  |  | 3.58% | 2.42% | 2.07% | 6.23% | 2.40% | 2.09% | 2.14% | 2.77% |
| Liabilities / equity | 1.09 | 0.85 |  |  | 0.91 | 1.01 | 0.94 | 0.90 | 0.94 | 1.06 | 0.98 | 0.97 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001025996.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-06-30 |  |  | 0.40 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 0.68 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.48 | reported discrete quarter |
| 2023-Q2 | 2023-03-31 |  | 65,230,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-06-30 | 284,282,000 |  | 0.47 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 61,275,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 283,594,000 |  | 0.45 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 269,016,000 | 53,046,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 278,581,000 | 55,700,000 | 0.42 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 55,700,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 280,731,000 |  | 0.41 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 54,547,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 289,938,000 |  | 0.44 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 286,379,000 | 65,034,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 270,844,000 | 43,681,000 | 0.33 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 43,681,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 289,892,000 |  | 0.57 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 79,568,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 279,744,000 |  | 1.31 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 272,187,000 | 17,109,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 270,053,000 | -14,673,000 | -0.16 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from KRC's latest 10-K: [/company/KRC/business/](/company/KRC/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from KRC's latest 10-K: [/company/KRC/risk-factors/](/company/KRC/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1025996/000162828026050215/krc-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-28
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion relates to our consolidated financial statements and should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report. The results of operations discussion is combined for the Company and the Operating Partnership because there are no material differences in the results of operations between the two reporting entities.

Forward-Looking Statements

Statements contained in this “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” that are not historical facts may be forward-looking statements. Forward-looking statements include, among other things, statements or information concerning our plans, objectives, capital resources, portfolio performance, results of operations, projected future occupancy and rental rates, lease expirations, debt maturities, potential investments, strategies such as capital recycling, development and redevelopment activity, projected construction costs, projected construction commencement and completion dates, projected square footage of space that could be constructed on undeveloped land that we own, projected rentable square footage of or number of units in properties under construction or in the development pipeline, anticipated proceeds from capital recycling activity or other dispositions and anticipated dates of those activities or dispositions, projected increases in the value of properties, dispositions, future executive incentive compensation, pending, potential or proposed acquisitions, plans to grow our Net Operating Income and FFO, our ability to re-lease properties at or above current market rates, anticipated market conditions and demographics and other forward-looking financial data, as well as the discussion in “—Factors That May Influence Future Results of Operations,” “—Liquidity and Capital Resources of the Company,” and “—Liquidity and Capital Resources of the Operating Partnership.” Forward-looking statements can be identified by the use of words such as “believes,” “expects,” “projects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates”, or “anticipates” and the negative of these words and phrases and similar expressions that do not relate to historical matters. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results, and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including actual and potential tariffs and periods of heightened inflation, and their effect on us and our tenants; adverse economic or real estate conditions generally, and specifically, in the states of California, Texas, and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the media industry, may have on our tenants’ businesses; our ability to re-lease property at or above current market rates; reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer’s office premises; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service, and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment, and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices, or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed, and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement, and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations, or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; and our ability to maintain our status as a REIT. The factors included in this report are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect the

23

Company’s and the Operating Partnership’s business and financial performance, see the discussion below, as well as in “Part I, Item 1A. Risk Factors” and “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s and the Operating Partnership’s annual report on Form 10-K for the year ended December 31, 2025, and their respective other filings with the SEC. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement that becomes untrue because of subsequent events, new information, or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

Overview and Background

We are a self-administered REIT active in premier office, life science, and mixed-use property types in the United States. We own, manage, develop, and acquire primarily 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 long-term strategic advantages and strong barriers to entry. We own our interests in all of our real estate assets and conduct substantially all of our operations through the Operating Partnership, of which we owned an approximate 99.0% and 99.1% common general partnership interest as of June 30, 2026 and December 31, 2025, respectively. All of our properties and development and redevelopment projects are 100% owned, excluding four office properties and one future development project owned by the Consolidated Property Partnerships. As of June 30, 2026, all of our properties are held in fee except for the fourteen office buildings that are held subject to long-term ground leases.

Stabilized Portfolio Information

As of June 30, 2026, our stabilized portfolio was comprised of 123 office and life science properties encompassing an aggregate of approximately 17.1 million rentable square feet. This portfolio includes all properties except properties under development and redevelopment or in the tenant improvement phase, undeveloped land, and real estate assets held for sale, if any. Our stabilized portfolio also excludes our future development pipeline, which, as of June 30, 2026, was comprised of nine potential development sites.

The following table reconciles the changes in the rentable square feet in our stabilized portfolio of operating properties from December 31, 2025 to June 30, 2026, inclusive of four properties owned by the Consolidated Property Partnerships and excluding our residential portfolio:

[[GREPCENT_TABLE]]
[["","Number of Buildings","","Rentable Square Feet"],["Total as of December 31, 2025","121","","","16,292,164"],["Completed development properties placed in-service","3","","","871,738"],["Dispositions (1)","(1)","","","(39,192)"],["Remeasurements (2)","\u2014","","","3,346"],["Total as of June 30, 2026","123","","","17,128,056"]]
[[/GREPCENT_TABLE]]

________________________

(1)Excludes Kilroy Sabre Springs, which was classified as held for sale as of December 31, 2025 and not included in the stabilized portfolio, and the two residential properties disposed of in April 2026, measured in units.

(2)Represents a recalculation of a property's rentable square footage using updated industry measurement standards.

Occupancy Information

The following table sets forth certain information regarding our stabilized portfolio, excluding our residential portfolio, as of the end of the period presented:

[[GREPCENT_TABLE]]
[["","","June 30, 2026","","March 31, 2026","","December 31, 2025"],["Region","","Number of Buildings","","Rentable Square Feet","","Occupancy","","Number of Buildings","","Rentable Square Feet","","Occupancy","","Number of Buildings","","Rentable Square Feet","","Occupancy"],["San Francisco Bay Area","","33","","","6,436,709","","","75.3","%","","33","","","6,436,709","","","75.2","%","","30","","","5,564,971","","","86.2","%"],["Los Angeles","","52","","","4,246,048","","","72.5","%","","52","","","4,242,385","","","74.8","%","","52","","","4,242,386","","","75.1","%"],["Seattle","","10","","","2,997,307","","","78.9","%","","10","","","2,997,307","","","79.3","%","","10","","","2,997,623","","","80.0","%"],["San Diego","","27","","","2,689,017","","","84.1","%","","27","","","2,689,017","","","84.6","%","","28","","","2,728,209","","","83.7","%"],["Austin","","1","","","758,975","","","84.0","%","","1","","","758,975","","","83.2","%","","1","","","758,975","","","82.2","%"],["Total","","123","","","17,128,056","","","77.0","%","","123","","","17,124,393","","","77.6","%","","121","","","16,292,164","","","81.6","%"]]
[[/GREPCENT_TABLE]]

24

The following table sets forth the average occupancy of certain property groups within our stabilized portfolio for the periods presented:

[[GREPCENT_TABLE]]
[["","Average Occupancy (1)"],["","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","2026","","2025"],["Stabilized Office & Life Science Portfolio (2)","77.6","%","","80.8","%","","77.5","%","","81.1","%"],["Same Property Portfolio (3)","82.0","%","","81.0","%","","82.0","%","","81.4","%"],["Residential Portfolio (4)","95.6","%","","93.8","%","","95.3","%","","94.5","%"]]
[[/GREPCENT_TABLE]]

________________________

(1)Occupancy percentages reported are calculated as the average of the da

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1025996/000162828026007051/krc-20251231.htm
Complete FY 2025 MD&A: /company/KRC/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-11
Report date: 2025-12-31

ITEM 7.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion relates to our consolidated financial statements and should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report. The results of operations discussion is combined for the Company and the Operating Partnership because there are no material differences in the results of operations between the two reporting entities.

Forward-Looking Statements

Statements contained in this “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” that are not historical facts may be forward-looking statements. Forward-looking statements include, among other things, statements or information concerning our plans, objectives, capital resources, portfolio performance, results of operations, projected future occupancy and rental rates, lease expirations, debt maturities, potential investments, strategies such as capital recycling, development and redevelopment activity, projected construction costs, projected construction commencement and completion dates, projected square footage of space that could be constructed on undeveloped land that we own, projected rentable square footage of or number of units in properties under construction or in the development pipeline, anticipated proceeds from capital recycling activity or other dispositions and anticipated dates of those activities or dispositions, projected increases in the value of properties, dispositions, future executive incentive compensation, pending, potential or proposed acquisitions, plans to grow our NOI and FFO, our ability to re-lease properties at or above current market rates, anticipated market conditions and demographics and other forward-looking financial data, as well as the discussion in “—Factors That May Influence Future Results of Operations,” “—Liquidity and Capital Resource of the Company,” and “—Liquidity and Capital Resources of the Operating Partnership.” Forward-looking statements can be identified by the use of words such as “believes,” “expects,” “projects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates”, or “anticipates” and the negative of these words and phrases and similar expressions that do not relate to historical matters. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results, and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others:

•global market and general economic conditions, including actual and potential tariffs and periods of heightened inflation, and their effect on us and our tenants;

•adverse economic or real estate conditions generally, and specifically, in the states of California, Texas, and Washington;

•risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry;

•defaults on or non-renewal of leases by tenants;

•any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the media industry, may have on our tenants’ businesses;

•our ability to re-lease property at or above current market rates;

•reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer’s office premises;

•costs to comply with government regulations, including environmental remediation;

•the availability of cash for distribution and debt service, and exposure to risk of default under debt obligations;

46

•increases in interest rates and our ability to manage interest rate exposure;

•changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment, and acquisition opportunities and refinance existing debt;

•a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices, or obtain or maintain debt financing, and which may result in write-offs or impairment charges;

•significant competition, which may decrease the occupancy and rental rates of properties;

•potential losses that may not be covered by insurance;

•the ability to successfully complete acquisitions and dispositions on announced terms;

•the ability to successfully operate acquired, developed, and redeveloped properties;

•the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts;

•delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, governmental permits and authorizations for our development and redevelopment properties;

•increases in anticipated capital expenditures, tenant improvement, and/or leasing costs;

•defaults on leases for land on which some of our properties are located;

•adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations or legislation, as well as business and consumer reactions to such changes;

•risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers;

•environmental uncertainties and risks related to natural disasters;

•risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; and

•our ability to maintain our status as a REIT.

The factors included in this report are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect the Company’s and the Operating Partnership’s business and financial performance, see the discussion below, as well as in “Item 1A. Risk Factors,” and in our respective other filings with the SEC. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement that becomes untrue because of subsequent events, new information, or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

47

Company Overview

We are a self-administered REIT active in premier office, life science, and mixed-use property types in the United States. 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. We own our interests in all of our real estate assets through the Operating Partnership and conduct substantially all of our operations through the Operating Partnership. We owned an approximate 99.1% and 99.0% common general partnership interest in the Operating Partnership as of December 31, 2025 and 2024, respectively. All of our properties are held in fee except for the fourteen office buildings that are held subject to long-term ground leases for the land (see Note 17 “Commitments and Contingencies” to our consolidated financial statements included in this report for additional information regarding our ground lease obligations).

2025 Operational Highlights

Throughout 2025, we remained focused on creating value for our stockholders through leasing and strategic capital allocation. We also continued to maintain a strong balance sheet and elevate our leadership position in sustainable operations.

Leasing. We executed new and renewal leases totaling 1.8 million square feet, excluding short-term leases, which is comprised of 1.2 million square feet of second generation leases signed within the stabilized portfolio and 0.6 million square feet of first generation, major repositioning, and development leases. For the 1.2 million square feet of leases signed within the stabilized portfolio, revenue recognized under U.S. generally accepted accounting principles (“GAAP”) and contractual rents decreased 9.3% and 18.4%, respectively. Our stabilized office portfolio was 81.6% occupied and 83.8% leased as of December 31, 2025.

Strategic Capital Allocation. In 2025, we completed the sale of three operating properties, comprised of six buildings, in three transactions to unaffiliated third parties for gross proceeds totaling approximately $466.0 million. Additionally, during the year ended December 31, 2025, we acquired two operating properties, comprised of five buildings, in two transactions for a cash purchase price of $397.3 million.

We also continued to execute on our development and redevelopment program during 2025. We added two completed redevelopment projects to our stabilized portfolio totaling 100,488 rentable square feet of life science space. We had one development project, Kilroy Oyster Point (Phase 2) (“KOP 2”), in the tenant improvement phase. During the year, we executed approximately 384,000 square feet of leases at KOP 2, bringing the project to 44% leased.

Financing. In 2025, we issued $400.0 million of new debt at a stated interest rate of 5.875% and we exercised our option to extend the maturity date of our unsecured term loan facility by 12 months to October 3, 2026. Additionally, we repaid in full the $400.0 million aggregate principal amount outstanding of our 4.375% senior notes due 2025.

48

Stabilized Portfolio Information

As of December 31, 2025, our stabilized portfolio was comprised of 121 office, life science, and mixed-use properties encompassing an aggregate of approximately 16.3 million rentable square feet and 1,001 residential units. Our 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.

As of December 31, 2025, the following properties and projects were excluded from our stabilized portfolio:

[[GREPCENT_TABLE]]
[["","Number of Properties / Projects","","Actual / Estimated Rentable Square Feet (1)"],["Properties held for sale (2)","1","","427,764"],["In-process development project - tenant improvement","1","","871,738"]]
[[/GREPCENT_TABLE]]

________________________

(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.

(2)See Note 4 “Dispositions and Held For Sale” to our consolidated financial statements included in this report for additional information.

Our stabilized portfolio also excludes our future development pipeline, which, as of December 31, 2025, was comprised of eight potential development sites on which we believe we could develop approximately 6.0 million rentable square feet of commercial real estate space and approximately 1,750 residential units.

The following table reconciles the changes in t

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/KRC/mda/fy2025/
All MD&A years: /company/KRC/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/KRC/mda/fy2024/): filed 2025-02-13; accession 0001025996-25-000052 (https://www.sec.gov/Archives/edgar/data/1025996/000102599625000052/krc-20241231.htm)
- [FY 2023 MD&A](/company/KRC/mda/fy2023/): filed 2024-02-09; accession 0001025996-24-000094 (https://www.sec.gov/Archives/edgar/data/1025996/000102599624000094/krc-20231231.htm)
- [FY 2022 MD&A](/company/KRC/mda/fy2022/): filed 2023-02-10; accession 0001025996-23-000072 (https://www.sec.gov/Archives/edgar/data/1025996/000102599623000072/krc-20221231.htm)
- [FY 2021 MD&A](/company/KRC/mda/fy2021/): filed 2022-02-10; accession 0001025996-22-000074 (https://www.sec.gov/Archives/edgar/data/1025996/000102599622000074/krc-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6798 Real Estate Investment Trusts) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/KRC.md · JSON record: /company/KRC.json · verified financials: /company/KRC/financials.json / /company/KRC/financials.csv · machine TOC for the whole site: /llms.txt