Kilroy Realty (KRC) investor relations material

Executive summary

• Q2 2026 results reflect improving West Coast commercial real estate fundamentals, with 376,000–400,000 sq ft of new and renewal leases executed and strong re-leasing spreads on second-generation space.

• Strategic focus and financial flexibility enhanced by $202 million in residential asset sales and expanded unsecured credit facilities.

• Entered into a Fifth Amended and Restated Credit Agreement and Amended and Restated Term Loan Agreement on June 12, 2026, with a syndicate of major banks, updating and expanding existing credit facilities.

Financial highlights

• Revenues for Q2 2026 were $272.4 million, down from $289.9 million in Q2 2025.

• Net income available to common stockholders was $19.9 million ($0.17 per diluted share), compared to $68.4 million ($0.57 per diluted share) a year ago.

• Funds from operations (FFO) were $109.3 million ($0.92 per diluted share), down from $135.9 million ($1.13 per diluted share) in Q2 2025.

• Net operating income margin was 66.2%.

• Dividend of $0.54 per share declared and paid, annualized at $2.16 per share.

Outlook and guidance

• Affirmed full-year 2026 Nareit-defined FFO per share guidance of $3.49 to $3.63 per diluted share.

• Average full-year occupancy expected at 76.5% to 78.0% (80.5% to 81.5% excluding KOP 2).

• Same property cash NOI growth projected at 0.25% to 1.25%.

• Total development spending revised to +/- $150 million.

• High-end guidance depends on accelerating rent commencements and continued leasing execution.