Kilroy Realty (KRC) 8-K First Quarter 2008 Supplemental Financial Report

Exhibit 99.2

Contact: Richard E. Moran Jr. Executive Vice President FOR RELEASE: April 21, 2008

and Chief Financial Officer

(310) 481-8483

or

Tyler H. Rose

Senior Vice President

and Treasurer

(310) 481-8484

KILROY REALTY CORPORATION REPORTS

FIRST QUARTER FINANCIAL RESULTS

LOS ANGELES, April 21, 2008 – Kilroy Realty Corporation(NYSE: KRC) today reported financial results for its first quarter ended March 31, 2008 with net income available for common shareholders of $9.9 million, or $0.30 per share, compared to $16.5 million, or $0.51 per share, in the first quarter of 2007. First quarter 2007 net income included an $8.6 million gain related to property dispositions. Revenues from continuing operations in the first quarter totaled $70.8 million, up from $61.4 million in the prior year’s first quarter. Funds from operations (FFO) for the period totaled $30.2 million, or $0.87 per share, compared to $26.0 million, or $0.75 per share, in the year-earlier period.

All per-share amounts in this report are presented on a diluted basis.

“KRC had a solid first quarter, ending the period with stabilized occupancy just below 95%,” said John B. Kilroy, Jr., the company’s president and chief executive officer. “Given the economic uncertainty as we head deeper into 2008, we remain focused on leasing, delivering our under construction properties, and maintaining a strong balance sheet.”

KRC’s current development program encompasses four new office buildings in high-growth submarkets of San Diego County totaling approximately 400,000 square feet of rentable space. The four projects represent a total estimated investment of approximately $159 million, of which $117 million has been spent to date. They are 73% leased.

The company also has two redevelopment projects underway totaling just under 211,000 square feet of space. These two projects represent a total estimated incremental investment of approximately $27 million and are 49% leased.

Updated earnings guidance for 2008 will be discussed by KRC management during the company’s April 22, 2008 earnings conference call. The call will begin at 11:00 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) 679-8037, reservation #37816935. A replay of the conference call will be available via phone through May 6, 2008 at (888) 286-8010, reservation #17724705, 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

2

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 Southern California-based real estate investment trust active in the office and industrial property sectors. For over 60 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of Los Angeles, Orange and San Diego counties. Kilroy Realty currently has an in-process development and redevelopment pipeline of approximately 600,000 square feet. At March 31, 2008, the company owned 8.1 million rentable square feet of commercial office space and 3.9 million rentable square feet of industrial space. More information is available at www.kilroyrealty.com.

3

KILROY REALTY CORPORATION

SUMMARY QUARTERLY RESULTS

(unaudited, in thousands, except per share data)

	Three Months Ended March 31, 2008		Three Months Ended March 31, 2007
Revenues from continuing operations	$	70,802	$	61,433
Revenues including discontinued operations	$	70,802	$	64,077
Net income available for common stockholders(1)	$	9,864	$	16,478
Weighted average common shares outstanding - basic		32,457		32,349
Weighted average common shares outstanding - diluted		32,555		32,485
Net income per share of common stock - basic	$	0.30	$	0.51
Net income per share of common stock - diluted	$	0.30	$	0.51
Funds From Operations(2), (3)	$	30,199	$	26,021
Weighted average common shares/units outstanding - basic(4)		34,646		34,600
Weighted average common shares/units outstanding - diluted(4)		34,744		34,737
Funds From Operations per common share/unit - basic(4)	$	0.87	$	0.75
Funds From Operations per common share/unit - diluted(4)	$	0.87	$	0.75
Common shares outstanding at end of period		32,732		32,698
Common partnership units outstanding at end of period		2,189		2,248
Total common shares and units outstanding at end of period		34,921		34,946

	March 31, 2008		March 31, 2007
Stabilized portfolio occupancy rates:
Office	94.8	%	95.5	%
Industrial	94.8	%	91.0	%
Weighted average total	94.8	%	94.0	%
Los Angeles	96.5	%	93.8	%
Orange County	94.4	%	91.2	%
San Diego	93.7	%	98.2	%
Other	99.6	%	89.7	%
Weighted average total	94.8	%	94.0	%
Total square feet of stabilized properties owned at end of period:
Office	8,089		7,835
Industrial	3,870		3,870
Total	11,959		11,705

(1) Net income after minority interests.

(2) Reconciliation of Net Income to Funds From Operations and management statement on Funds From Operations are included after the Consolidated Statements of Operations.

(3) Reported amounts are attributable to common stockholders and common unitholders.

(4) Calculated based on weighted average shares outstanding assuming conversion of all common limited partnership units outstanding.

4

KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

	March 31, 2008			December 31, 2007
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	324,779		$	324,779
Buildings and improvements		1,733,794			1,719,700
Undeveloped land and construction in progress		347,699			324,077
Total real estate held for investment		2,406,272			2,368,556
Accumulated depreciation and amortization		(480,642	)		(463,932	)
Total real estate assets, net		1,925,630			1,904,624
Cash and cash equivalents	$	4,881		$	11,732
Restricted cash		11			546
Marketable securities		2,238			707
Current receivables, net		4,724			4,891
Deferred rent receivables, net		68,423			67,283
Notes receivable		10,938			10,970
Deferred leasing costs and acquisition related intangibles, net		53,335			54,418
Deferred financing costs, net		7,946			8,492
Prepaid expenses and other assets, net		7,783			5,057
TOTAL ASSETS	$	2,085,909		$	2,068,720
LIABILITIES & STOCKHOLDERS’ EQUITY
LIABILITIES:
Secured debt	$	394,983		$	395,912
Exchangeable senior notes, net		456,320			456,090
Unsecured senior notes		144,000			144,000
Unsecured line of credit		137,000			111,000
Accounts payable, accrued expenses and other liabilities		49,295			58,249
Accrued distributions		21,464			20,610
Deferred revenue and acquisition related liabilities		72,573			59,187
Rents received in advance and tenant security deposits		20,699			18,433
Total liabilities		1,296,334			1,263,481
MINORITY INTERESTS:
7.45% Series A Cumulative Redeemable Preferred units of the Operating Partnership		73,638			73,638
Common units of the Operating Partnership		37,563			38,309
Total minority interests		111,201			111,947
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		327			328
Additional paid-in capital		653,101			658,894
Distributions in excess of earnings		(96,636	)		(87,512	)
Total stockholders’ equity		678,374			693,292
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	2,085,909		$	2,068,720

5

KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended March 31, 2008			Three Months Ended March 31, 2007
REVENUES:
Rental income	$	62,305		$	54,433
Tenant reimbursements		8,193			5,896
Other property income		304			1,104
Total revenues		70,802			61,433
EXPENSES:
Property expenses		11,488			9,966
Real estate taxes		5,479			4,553
Provision for bad debts		455			(172	)
Ground leases		395			403
General and administrative expenses		9,236			9,048
Interest expense		9,713			9,656
Depreciation and amortization		19,866			16,845
Total expenses		56,632			50,299
OTHER INCOME:
Interest and other investment income		157			619
Income from continuing operations before minority interests		14,327			11,753
Minority interests:
Distributions on Cumulative Redeemable
Preferred units		(1,397	)		(1,397	)
Minority interest in earnings of Operating Partnership attributable to continuing operations		(664	)		(513	)
Total minority interests		(2,061	)		(1,910	)
Income from continuing operations		12,266			9,843
Discontinued operations:
Revenues from discontinued operations					2,644
Expenses from discontinued operations					(1,603	)
Net gain on dispositions of discontinued operations					8,626
Minority interest in earnings of Operating Partnership attributable to discontinued operations					(630	)
Total income from discontinued operations		—			9,037
Net income		12,266			18,880
Preferred dividends		(2,402	)		(2,402	)
Net income available for common stockholders	$	9,864		$	16,478
Weighted average shares outstanding - basic		32,457			32,349
Weighted average shares outstanding - diluted		32,555			32,485
Net income per common share - basic	$	0.30		$	0.51
Net income per common share - diluted	$	0.30		$	0.51

6

KILROY REALTY CORPORATION FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended March 31, 2008		Three Months Ended March 31, 2007
Net income available for common stockholders	$	9,864	$	16,478
Adjustments:
Minority interest in earnings of Operating Partnership		664		1,143
Depreciation and amortization of real estate assets		19,671		17,026
Net gain on dispositions of discontinued operations				(8,626	)
Funds From Operations (1), (2)	$	30,199	$	26,021
Weighted average common shares/units outstanding - basic		34,646		34,600
Weighted average common shares/units outstanding - diluted		34,744		34,737
Funds From Operations per common share/unit - basic	$	0.87	$	0.75
Funds From Operations per common share/unit - diluted	$	0.87	$	0.75

(1) The Company calculates FFO in accordance with the White Paper on FFO approved by the Board of Governors of NAREIT. The White Paper defines FFO as net income or loss calculated in accordance with GAAP, excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable operating property, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships and joint ventures.

Management believes that FFO is a useful supplemental measure of the Company’s operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, the Company’s FFO may not be comparable to all other REITs.

Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting to be insufficient by themselves. Because FFO excludes depreciation and amortization of real estate assets, Management believes that FFO along with the required GAAP presentations provides a more complete measurement of the Company’s performance relative to its competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide.

However, FFO should not be viewed as an alternative measure of the Company’s operating performance since it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties, which are significant economic costs and could materially impact the Company’s results from operations.

(2) Reported amounts are attributable to common stockholders and common unitholders.

7