Exhibit 99.2

Contact:		FOR RELEASE:
Tyler H. Rose		January 31, 2011
Executive Vice President
And Chief Financial Officer
(310) 481-8484
or
Michelle Ngo
Vice President and Treasurer
(310) 481-8581

KILROY REALTY CORPORATION REPORTS
FOURTH QUARTER FINANCIAL RESULTS

     LOS ANGELES, January 31, 2011 - Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its fourth quarter ended December 31, 2010 with net income available to common stockholders of $1.5 million, or $0.02 per share, compared to a net loss available to common stockholders of $3.0 million, or $0.08 per share, in the fourth quarter of 2009. Revenues from continuing operations in the fourth quarter totaled $82.9 million, up from $67.4 million in the prior year’s fourth quarter. Funds from operations (FFO) for the period totaled $29.5 million, or $0.54 per share, compared to $17.7 million, or $0.39 per share, in the year-earlier period.

     For its fiscal year ended December 31, 2010, KRC reported net income available to common stockholders of $4.5 million, or $0.07 per share, compared to $21.8 million, or $0.53 per share, in fiscal year 2009. Revenues from continuing operations in 2010 totaled $302.0 million, up from $279.4 million in 2009. FFO for the year totaled $106.6 million, or $2.05 per share, compared to $107.2 million, or $2.60 per share, in 2009.

     Results for the fourth quarter and fiscal year ended December 31, 2009 include a one-time $7.0 million charge for separation payments related to the resignation of the company’s former chief financial officer and also include a $4.9 million, or $0.12 per share, gain from the early extinguishment of debt related to the company’s repurchase of a portion of its 3.25% exchangeable senior notes. In addition, net income amounts for the fourth quarter and fiscal year ended December 31, 2009 include an approximate $2.5 million gain from a property disposition. Results for the fiscal

 

year ended December 31, 2010 include a $4.6 million, or $0.09 per share, charge for the early extinguishment of debt related to the company’s repurchase of $150.0 million of its 3.25% exchangeable senior notes. In addition, net income amounts for the fourth quarter and fiscal year ended December 31, 2010 include an approximate $1.0 million net gain from property dispositions. All per share amounts in this report are presented on a diluted basis.

     During the fourth quarter of 2010, KRC completed the acquisition of three office properties totaling just over 692,000 square feet of space for a total investment of approximately $268.4 million.

     In October and November, the company completed the previously-announced purchases of a 122,100 square-foot, three-story office building in the greater Seattle area for approximately $46.0 million and a 466,500 square-foot, 27-story Class A, LEED Gold certified office building in San Francisco’s South Financial District for approximately $191.5 million, respectively.

     Also in November, KRC completed the acquisition of a 103,900 square-foot, LEED Gold certified office building located in the Liberty Station community of San Diego for approximately $30.9 million. Completed in 2009, the building was 95% occupied as of December 31, 2010.

     During 2010 KRC acquired ten office properties, totaling more than two million square feet of space, located in coastal submarkets of San Diego, Orange County, San Francisco and greater Seattle, for an aggregate investment of approximately $697.8 million. In the aggregate, these ten properties were 86.4% occupied and 92.8% leased at year-end 2010.

     In January 2011, the company completed its third acquisition in San Francisco with the purchase of 250 Brannan Street in the South Financial District for approximately $33.0 million. The building encompasses approximately 91,000 square feet and is currently 77% leased to two tenants.

     KRC also reported that its leasing program made solid gains in the fourth quarter, with the company signing new and renewing leases on approximately 850,000 square feet of office and industrial space. At December 31, 2010, the company’s stabilized portfolio totaled approximately 14.0 million square feet and was 89.1% occupied, up from 82.8% at December 31, 2009.

     “We made substantial progress on a number of fronts during 2010,” said John Kilroy, Jr., KRC’s president and chief executive officer. “We signed leases on close to 2.0 million square feet of space, increasing our stabilized occupancy by more than six percentage points. We expanded our geographic footprint and asset base with strategic acquisitions, many LEED certified, in high potential, high value West Coast markets. And we obtained investment grade ratings and broadened our sources of capital. Looking forward, our focus will remain on a strong leasing program, a conservatively managed balance sheet, and an opportunistic growth program that may include acquisitions or development, depending upon market conditions and tenant demand.”

     KRC management will discuss earnings guidance for fiscal 2011 during the company’s February 1, 2011 earnings conference call. The call will begin at 10:00 a.m. Pacific Time and last approximately one hour. Those interested in listening via the Internet can access the conference call at www.kilroyrealty.com. Please go to the website

15 minutes before the call and register. It may be necessary to download audio software to hear the conference call. Those interested in listening via telephone can access the conference call at (888) 680-0878, reservation # 41157265. A replay of the conference call will be available via phone through February 8, 2011 at (888) 286-8010, reservation # 38801637, or via the Internet at the company’s website.

     Some of the information presented in this release is forward looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995. Although Kilroy Realty Corporation believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that could cause actual results to differ materially from Kilroy Realty’s expectations are set forth as risk factors in the company’s Securities and Exchange Commission reports and filings. Included among these factors are changes in general economic conditions, including changes in the economic conditions affecting industries in which its principal tenants compete; Kilroy Realty’s ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs, including utility costs; future demand for its debt and equity securities; its ability to refinance its debt on reasonable terms at maturity; its ability to complete current and future development projects on schedule and on budget; the demand for office space in markets in which Kilroy Realty has a presence; and risks detailed from time to time in the company’s SEC reports, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K. Many of these factors are beyond Kilroy Realty’s ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, Kilroy Realty claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

     Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a real estate investment trust active in the premier office and industrial submarkets along the West Coast. For over 60 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay Area. At December 31, 2010, the company owned 10.4 million rentable square feet of commercial office space and 3.6 million rentable square feet of industrial space. More information is available at www.kilroyrealty.com.

KILROY REALTY CORPORATION
SUMMARY QUARTERLY RESULTS
(unaudited, in thousands, except per share data)

		Three Months				Three Months
		Ended				Ended				Year Ended				Year Ended
		December 31, 2010				December 31, 2009				December 31, 2010				December 31, 2009
Revenues		$	82,941			$	67,379			$	301,980			$	279,434
Net income (loss) available to common stockholders		$	1,535			$	(3,009	)		$	4,512			$	21,794
Weighted average common shares outstanding — basic			52,275				42,936				49,497				38,705
Weighted average common shares outstanding — diluted			52,291				42,936				49,513				38,732
Net income (loss) available to common stockholders per share — basic		$	0.02			$	(0.08	)		$	0.07			$	0.53
Net income (loss) available to common stockholders per share — diluted		$	0.02			$	(0.08	)		$	0.07			$	0.53
Funds From Operations (1), (2)		$	29,485			$	17,679			$	106,639			$	107,159
Weighted average common shares/units outstanding — basic (3)			54,786				45,502				52,033				41,222
Weighted average common shares/units outstanding — diluted (3)			54,802				45,557				52,049				41,249
Funds From Operations per common share/unit — basic (3)		$	0.54			$	0.39			$	2.05			$	2.60
Funds From Operations per common share/unit — diluted (3)		$	0.54			$	0.39			$	2.05			$	2.60
Common shares outstanding at end of period											52,350				43,149
Common partnership units outstanding at end of period											1,723				1,723
Total common shares and units outstanding at end of period											54,073				44,872

		December 31, 2010				December 31, 2009
Stabilized portfolio occupancy rates:
Office			87.5	%			80.6	%
Industrial			93.9	%			88.2	%
Weighted average total			89.1	%			82.8	%
Los Angeles and Ventura Counties			89.9	%			89.4	%
San Diego			86.4	%			76.8	%
Orange County			93.5	%			84.8	%
San Francisco			84.3	%			—
Greater Seattle			100.0	%			—
Weighted average total			89.1	%			82.8	%
Total square feet of stabilized properties owned at end of period:
Office			10,395				8,709
Industrial			3,603				3,654
Total			13,998				12,363

KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS
(in thousands)

		December 31,				December 31,
		2010				2009
ASSETS
REAL ESTATE ASSETS:
Land and improvements		$	491,333			$	335,932
Buildings and improvements			2,435,173				1,920,543
Undeveloped land and construction in progress			290,365				263,608
Total real estate held for investment			3,216,871				2,520,083
Accumulated depreciation and amortization			(672,429	)			(605,976	)
Total real estate assets, net			2,544,442				1,914,107
Cash and cash equivalents			14,840				9,883
Restricted cash			1,461				2,059
Marketable securities			4,902				3,452
Current receivables, net			6,258				3,236
Deferred rent receivables, net			89,052				74,392
Note receivable			—				10,679
Deferred leasing costs and acquisition-related intangible assets, net			131,066				51,832
Deferred financing costs, net			16,447				8,334
Prepaid expenses and other assets, net			8,097				6,307
TOTAL ASSETS		$	2,816,565			$	2,084,281
LIABILITIES, NONCONTROLLING INTEREST AND EQUITY
LIABILITIES:
Secured debt, net		$	313,009			$	294,574
Exchangeable senior notes, net			299,964				436,442
Unsecured senior notes, net			655,803				144,000
Unsecured line of credit			159,000				97,000
Accounts payable, accrued expenses and other liabilities			68,525				52,533
Accrued distributions			20,385				17,136
Deferred revenue and acquisition-related intangible liabilities, net			79,322				66,890
Rents received in advance and tenant security deposits			29,189				18,230
Total liabilities			1,625,197				1,126,805
NONCONTROLLING INTEREST:
7.45% Series A cumulative redeemable preferred units of the Operating Partnership			73,638				73,638
EQUITY:
Stockholders’ Equity
7.80% Series E Cumulative Redeemable Preferred stock			38,425				38,425
7.50% Series F Cumulative Redeemable Preferred stock			83,157				83,157
Common stock			523				431
Additional paid-in capital			1,211,498				913,657
Distributions in excess of earnings			(247,252	)			(180,722	)
Total stockholders’ equity			1,086,351				854,948
Noncontrolling Interest
Common units of the Operating Partnership			31,379				28,890
Total equity			1,117,730				883,838
TOTAL LIABILITIES, NONCONTROLLING INTEREST AND EQUITY		$	2,816,565			$	2,084,281

KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)

		Three Months				Three Months
		Ended				Ended				Year Ended				Year Ended
		December 31, 2010				December 31, 2009				December 31, 2010				December 31, 2009
REVENUES:
Rental income		$	76,406			$	60,690			$	274,708			$	247,649
Tenant reimbursements			5,914				6,177				24,326				28,075
Other property income			621				512				2,946				3,710
Total revenues			82,941				67,379				301,980				279,434
EXPENSES:
Property expenses			15,659				12,099				58,067				49,709
Real estate taxes			7,362				6,069				27,494				24,330
Provision for bad debts			(220	)			174				(1,063	)			569
Ground leases			336				370				984				1,597
General and administrative expenses			6,867				17,915				27,963				39,938
Acquisition-related expenses			624				—				2,248				—
Depreciation and amortization			29,095				21,019				103,809				87,627
Total expenses			59,723				57,646				219,502				203,770
OTHER (EXPENSES) INCOME:
Interest income and other net investment gains			261				226				964				1,300
Interest expense			(19,044	)			(11,078	)			(59,941	)			(46,119	)
Gain (loss) on early extinguishment of debt			—				1,790				(4,564	)			4,909
Total other (expenses) income			(18,783	)			(9,062	)			(63,541	)			(39,910	)
INCOME FROM CONTINUING OPERATIONS			4,435				671				18,937				35,754
DISCONTINUED OPERATIONS
Loss from discontinued operations			—				—				—				(224	)
Net gain on dispositions of discontinued operations			949				—				949				2,485
Total income from discontinued operations			949				—				949				2,261
NET INCOME			5,384				671				19,886				38,015
Net (income) loss attributable to noncontrolling common units of the Operating Partnership			(50	)			119				(178	)			(1,025	)
NET INCOME ATTRIBUTABLE TO KILROY REALTY CORPORATION			5,334				790				19,708				36,990
PREFERRED DISTRIBUTIONS AND DIVIDENDS:
Distributions on noncontrolling cumulative redeemable preferred units of the Operating Partnership			(1,397	)			(1,397	)			(5,588	)			(5,588	)
Preferred dividends			(2,402	)			(2,402	)			(9,608	)			(9,608	)
Total preferred distributions and dividends			(3,799	)			(3,799	)			(15,196	)			(15,196	)
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS		$	1,535			$	(3,009	)		$	4,512			$	21,794
Weighted average common shares outstanding — basic			52,275				42,936				49,497				38,705
Weighted average common shares outstanding — diluted			52,291				42,936				49,513				38,732
Net income (loss) available to common stockholders per share — basic		$	0.02			$	(0.08	)		$	0.07			$	0.53
Net income (loss) available to common stockholders per share — diluted		$	0.02			$	(0.08	)		$	0.07			$	0.53

KILROY REALTY CORPORATION FUNDS FROM OPERATIONS
(unaudited, in thousands, except per share data)

		Three Months Ended				Three Months Ended				Year Ended				Year Ended
		December 31, 2010				December 31, 2009				December 31, 2010				December 31, 2009
Net income (loss) available to common stockholders		$	1,535			$	(3,009	)		$	4,512			$	21,794
Adjustments:
Net income (loss) attributable to noncontrolling common units of the Operating Partnership			50				(119	)			178				1,025
Depreciation and amortization of real estate assets			28,849				20,807				102,898				86,825
Net gain on dispositions of discontinued operations			(949	)			—				(949	)			(2,485	)
Funds From Operations (1)		$	29,485			$	17,679			$	106,639			$	107,159
Weighted average common shares/units outstanding — basic			54,786				45,502				52,033				41,222
Weighted average common shares/units outstanding — diluted			54,802				45,557				52,049				41,249
Funds From Operations per common share/unit — basic (2)		$	0.54			$	0.39			$	2.05			$	2.60
Funds From Operations per common share/unit — diluted (2)		$	0.54			$	0.39			$	2.05			$	2.60