KILROY REALTY | 0

KILROY

REALTY

COMPANY UPDATE

November 2020

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This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,

as amended. 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 and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate

conditions generally, and specifically, in the States of California 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; our ability to re-lease property at or above current market rates; 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; 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; our ability to maintain our status as a REIT; and uncertainties regarding the impact of the COVID-19 pandemic, and restrictions intended to prevent its spread, on our business and

the economy generally. These factors 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 our business and financial performance, see the factors included under the caption “Risk Factors” in our quarterly report on Form 10-Q for the period ending

September 30, 2020 and in our annual report on Form 10-K for the year ended December 31, 2019 and our other filings with the Securities and Exchange Commission. 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 made in

this press release 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.

DISCLAIMER

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AGENDA01

Key Company Highlights

– Strong Foundation

– Rent Collections: 2Q20, 3Q20 and October 2020

– Leader in Wellness and Sustainability

02 Growing Life Science Portfolio

03 West Coast Market Observations

04Strong Financial Position

– Playing Defense and Offense

Kilroy Oyster Point Phase 1 / Oyster Point, South San Francisco

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KEY COMPANY HIGHLIGHTS

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STRONG FOUNDATION

~$1.4B of Liquidity

No Debt Maturities

Until 2023(1)

Development is

Fully Funded and

90% Leased(2)

State-of-the-Art

Portfolio

Limited Lease Expirations:

~6.5% / Year Through 2023

Growing Life

Science Portfolio

KRC data as of 3Q20.

(1) Excludes credit facility maturity in 2022.

(2) Development projects under construction.

Diversified Future

Development Pipeline

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2Q & 3Q 2020 AND OCTOBER 2020 RENT COLLECTIONS

98%

26%

89%95%

Office Retail Residential Total

OCTOBER COLLECTIONS

99%

33%

88%

96%98%

43%

88%

96%

Office Retail Residential Total

2Q 3Q

Average 2Q & 3Q 2020 COLLECTIONS

Note: Rent collection on a “gross” basis.

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LEADER IN WELLNESS AND SUSTAINABILITY

GRESB (Nov 2020 Announcement)

• #1 in the Americas across all listed asset types:

7x winner

• #1 in the world across all listed office companies

• #1 office developer in the world

FITWEL

Most certified projects of any non-government owner

NAREIT

Leader in the Light Award, Office Sector

• 6x winner

ENERGY STAR

Partner of the Year Award

• 4x winner in Sustained Excellence

• 7x winner overall

Dow Jones

Sustainability World Index

• 4x inclusion (Announced Nov 2020)

Bloomberg

Gender Equality Index

• 2020

GREEN LEASE LEADERS

• 5x winner

THE CLIMATE GROUP

Climate Leadership Award,

Organization Category

• 2020

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GROWING LIFE SCIENCE

PORTFOLIO

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U.S. LIFE SCIENCE CLUSTERS

1

4

5

7

3

2

6SOUTH LAKE UNION6 MM SF / / $65.00

2% Vacancy / / 9% Rent Growth

~400K SF Demand

SOUTH SAN FRANCISCO14 MM SF / / $68.00+

2% Vacancy / / 7.5% Rent Growth

~4M SF Demand

SAN DIEGO16 MM SF / / $56.00+

8% Vacancy / / 18% Rent Growth

1.8+ M SF Demand

RESEARCH TRIANGLE PARK6 MM SF / / $24.00+

MARYLAND7 MM SF / / $31.00+

NEW YORK CITY2 MM SF / / $92.00+

CAMBRIDGE15 MM SF / / $97.00+

Represents Class-A NNN Asking Rents. Market statistics per CBRE; rent growth is 18-month change.

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LIFE SCIENCE FUNDAMENTALSPositively Benefited from Covid-19 Pandemic; Continued Strong Drivers

2xAGING

POPULATION Seniors to double by 2050;

life expectancy continues

to increase

~20%OF GDP

$21.8B2019 VC INVESTMENT(second highest year

$20BN average over past five years)

INCREASE IN

BIOTECH INDEX

Outperformed the broader

market over 1, 5 & 10 year

periods

INNOVATION

FOCUSED FDA48 FDA approvals in 2019

(second highest year / 42 YTD)

7% YoYANNUAL GROWTH

IN NIH BUDGET

2019-2020in healthcare expenditures

Source: National Health Expenditure Accounts, Food and Drug Administration, National Institute of Health and PwC Moneytree as of 3Q20.

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KILROY’S LIFE SCIENCE PORTFOLIO

Deserves More Appreciation

(1) Based on publicly traded REITs using annualized base rent (ABR) data as of 3Q20 from life science and health care tenants occupying either office and life science buildings.

(2) Pro forma includes the following within: (i) stabilized portfolio- Kilroy Centre Del Mar, El Camino Real campus, 401 Terry Ave North, 1701 Page Mill Road and OPTC, (ii) life-science capable assets -1800 Owens

Street and 9455 Towne Centre Drive and (iii) development -KOP Phases 1-5.

(3) Based on Green St estimates for life science implied cap rates.

~5M SF Pro Forma Footprint (2)

• ~1.2M SF stabilized portfolio

• ~0.9M SF life science-capable assets

• ~2.9M SF Kilroy Oyster Point development

Public Market Life Science Cap Rate: ~4%(3)

Portfolio Highlights:

▪ Among top three largest portfolios of life

science and healthcare tenants(1)

▪ More than two decades of experience serving

life science and healthcare tenants

▪ Portfolio essentially fully leased to strong

credit tenants

▪ Significant embedded value based on recent

transactions

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LIFE SCIENCE - RECENT TRANSACTIONS

Property/ Land Submarket Transaction Date

Approximate

PSF

Estimated

Cap Rate

Northern California

420-466 Forbes (Land site) South San Francisco Nov-20 $256 NA

Genesis Campus South San Francisco Sep-20 $1,280 4.7%

3181 Porter Palo Alto Aug-20 $1,150 4.9%

3412 & 3330 Hillview Palo Alto Feb-20 $988 4.1%

500 Forbes South San Francisco Aug-19 $996 4.5%

Southern California

10770 Wateridge & 6325 Lusk Sorrento Mesa Apr-20 $748 5.0%

San Diego Tech Center Sorrento Mesa Oct-19 $384 3.5%

Braille Institute (Land site) UTC Jun-20 $260 NA

Blackstone Recap

BioMed Realty BOS/SF/SD/SEA/U.K. Nov-20 ~$1,295 Portfolio / NA

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➢ KOP 2-4 – Fully-Entitled

• Phase 2: ~900K SF across three buildings

▪ Potential 2021 start, subject to market conditions

▪ Three-year construction

▪ Can be developed in phases

▪ Likely multi-tenant

• Phases 3-4: ~1 M SF across four buildings

▪ Start is subject to market conditions

▪ Can be developed in phases

➢ KOP 5 – ~550K SF – entitlement process underway

➢ In November, purchased 150K SF of entitlements from

City of South San Francisco for Phases 1-5

▪ Total cost of ~$17 / FAR SF

▪ Entitlements limited to atriums and other amenities

KILROY OYSTER POINT - PH 2 – 5

11

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LIFE SCIENCE SUPPLY – SOUTH SAN FRANCISCO

(1) Assuming a 2021 commencement, which is subject to market conditions.

UNDER CONSTRUCTION

PROJECT | OWNER | PHASE(S)

Kilroy Oyster Point | KRC | I ~656K SF 100% 3Q 2021 Under construction

Gateway of Pacific | BioMed | II ~440K SF 62% Q1 2022 Under construction; Leased to Amgen

Gateway of Pacific | BioMed | III ~350K SF 0% Q4 2022 Under construction

201 Haskins Way | ARE ~315K SF 37% 4Q 2020 Under construction; Leased to Lyell

Total ~1,761K SF 59%

POTENTIAL FUTURE PROJECTS

PROJECT | OWNER | PHASE(S)

Kilroy Oyster Point | KRC | II ~900K SF 0% Q1 2023 (1)

Fully-entitled

Genesis Marina | Phase 3 ~535K SF 0% Q1 2023 Fully-entitled

South City Station | IQHQ ~342K SF 0% Q1 2024 Unentitled

Kilroy Oyster Point | KRC | III-IV ~1,000K SF 0% TBD Fully-entitled

Gateway of Pacific | BioMed | IV&V ~700K SF 0% TBD Fully-entitled

Total ~3,477K SF 0%

SF ('000s) % Committed Est. Delivery Comments

SF ('000s) % Committed Est. Delivery Entitlement Status / Comments

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WEST COAST MARKET

OBSERVATIONS

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Flower Mart, San Francisco / Multi-level Terrace

One Paseo, San Diego / Expansive Terrace

OBSERVATIONS ON THE

FUTURE OF OFFICE SPACE

MARKET OBSERVATIONS

• #1 near-term priority is health and safety for re-

entry of workforce to office

• Tech companies remain focused on growth as

use of technology continues to accelerate

• Growth (hiring) accelerated by providing

workforce more flexibility in terms of where they

want to work

• Key West Coast markets (San Francisco,

Silicon Valley, Seattle and Hollywood) remain

the core hubs for innovation and creativity

• Big tech companies continue to drive office

demand

▪ Amazon leased 2M SF in Bellevue

▪ Google plans to develop more than 2.6M

SF of mixed-use projects in Mountain

View

▪ Facebook leased 730K SF in NYC

▪ Netflix CEO has publicly stated that WFH

does not allow for collaboration

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WEST COAST VC FUNDING REMAINS HEALTHY

3Q 2020 U.S. VC Funding ($36.5BN Total)

Note: VC funding information f rom PwC, CB Insights and National Venture Capital Associat ion based on 3Q20 data.

KRC West Coast Markets VC Funding ($BN)

Bay Area36%

Los Angeles11%

San Diego2%

Washington3%

Remaining US

48%

$15.6 $15.5 $11.7 $13.5

$19.4 $17.7 $18.4

$34.7

$46.9

$34.5 $37.8

$69.0

$60.4

$15.4 $18.8

$48.8

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 3Q'19

3Q'20

YTD'20

Highest VC

Funding Year

3Q20 Highlights

• KRC’s west coast markets accounted for 52% of U.S. total

• Life Science accounted for ~22% of all funding with $8.0 BN

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SAN FRANCISCO BAY AREA

Subleasing Overview

Inventory

• ~7.1M SF / ~9% inventory compares to prior peak of ~9% in 4Q 2001

• Uber and Macys.com subleases totaled 980K SF; came on market pre-covid

o Excluding these two subleases, sublease declines to 6.1M SF or ~8% inventory

Segmenting the Details

• ~40% is big block (>50K SF) and ~60% is small block (<50K SF)

o 8 subleases over 100K SF

• 4 spaces are Uber and Macy’s; the other four are Credit Karma, DropBox, Twitter and Paypal

o 18 subleases over 50K (and less than 100K)

Expirations

• ~45% expires by end of 2023 and ~55% expiring 2024+

Location: FIDI & SOMA

• ~45% FIDI and 55% SOMA/ So Financial district

o Only 1.2M SF of subleases in SOMA

Note: Data from JLL as of November 8, 2020.

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STRONG FINANCIAL POSITION

PLAYING DEFENSE AND

OFFENSE

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STRONG FINANCIAL POSITION

(1) Includes cash on hand or investments in short-term securities and bank line availability as of 3Q20.

(2) Based on annualized quarterly EBITDA pro rata for strategic ventures as of 3Q20.

(3) Reflects stabilized NOI from remaining phase of The Exchange, first phase of Dexter, first phase of One Paseo Office, One Paseo Residential and Netflix on Vine.

(4) Reflects stabilized NOI from remaining phase of Dexter, remaining phase of One Paseo Office, Living on Vine, 9455 Towne Centre Drive and KOP Phase 1.

Balance Sheet Strength

▪ ~$1.4B of liquidity(1)

▪ ~$250M NOI cushion under bank

covenants

▪ 5.6x Net Debt / LQA EBITDA(2)

Announced dividend increase of 3.1% in

August

▪ Driven by strong NOI from development

projects

▪ 33.3% cumulative increase since 1Q 2016

Strong YTD same-store cash NOI growth of

positive ~10%

$591M

$91M $682M

$92M $774M

FY2019

Stabilized 2020Deliveries

FY 2020Pro Forma

Stabilized 2021Deliveries

FY 2021Pro Forma

Substantial NOI Growth From90% Leased Development Pipeline

+16% Growth +13% Growth

(3) (4)

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Where Innovation Works