KILROY REALTY CORP
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 28, 2026
KRC$35.82-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-28.
0001628280-26-028013
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0001628280-26-050215
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 220 previous paragraphs and 262 current paragraphs.
150 unchanged; 52 reworded; 49 added; 16 removed; 2 previous and 11 current paragraphs rearranged.
Tables are not compared: 22 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (49)
Current report
•A decrease of $12.8 million attributable to the Disposition Properties; and
Current report
•An increase of $6.2 million attributable to the Acquisition Properties; and
Current report
•$3.8 million increase in settlement income;
Current report
•$2.6 million increase in base rent attributable to $1.8 million from higher average occupancy levels and $0.8 million from higher rental rates;
Current report
•$0.5 million increase in revenues primarily due to parking and residential income.
Current report
•$1.8 million decrease in revenue primarily due to the repayment of a fully reserved accounts receivable in 2025;
Current report
•$0.4 million decrease in reimbursement revenues, primarily due to a decrease in recoverable operating expenses.
Current report
•Approximately $2.2 million increase in property expenses, primarily due to an increase in utilities and repairs and maintenance;
Current report
•$0.3 million increase in ground lease expense; and
Current report
General and administrative expenses increased $0.5 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to an increase in corporate initiatives.
Current report
Leasing Costs
Current report
Leasing costs increased $0.5 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to higher leasing volumes during the three months ended June 30, 2026.
Current report
•An increase of $5.6 million attributable to the Re/Development Properties, primarily due to the one property added to the stabilized portfolio in the first quarter of 2026; and
Current report
•A decrease of $8.3 million attributable to the Disposition Properties.
Current report
Interest income increased $0.7 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to higher average balances maintained in interest-bearing accounts.
Current report
Gross interest expense, before the effect of capitalized interest, increased $1.1 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to additional loan fee amortization for the three months ended June 30, 2026.
Current report
Net Income Attributable to Noncontrolling Interests in Consolidated Property Partnerships
Current report
Net income attributable to noncontrolling interests in consolidated property partnerships decreased $5.8 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to lease termination fee income attributable from one tenant in the second quarter of 2025. The amounts reported for the three months ended June 30, 2026 and 2025 are comprised of the share of net income attributable to noncontrolling interests for 100 First LLC, 303 Second LLC, and Redwood LLC. See Note 1 “Organization, Ownership, and Basis of Presentation” to our consolidated financial statements included in this report for additional information.
Current report
Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025
Current report
Net Operating Income decreased $12.3 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily resulting from:
Current report
•A decrease of $23.2 million attributable to the Disposition Properties; and
Current report
•An increase of $12.2 million attributable to the Acquisition Properties; and
Current report
•$4.1 million increase in settlement income;
Current report
•$3.7 million increase in base rent attributable to $2.2 million from increased occupancy and $1.5 million from higher rates;
Current report
•$0.4 million increase in reimbursement revenues, primarily due to an increase in recoverable operating expenses.
Current report
•Approximately $2.3 million increase in property expenses, primarily due to an increase in utilities and contract services; and
Current report
•$0.4 million increase in ground lease expense.
Current report
Lease Termination Fees
Current report
Lease termination fees decreased $10.5 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to a large lease termination fee recognized for one of the tenants in the San Francisco region in the second quarter of 2025.
Current report
General and Administrative Expenses
Current report
General and administrative expenses increased $4.3 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to a $2.1 million increase in compensation expenses and lower internal overhead capitalization and a $2.1 million increase in corporate initiatives.
Current report
Leasing Costs
Current report
Leasing costs increased $0.7 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to an increase in leasing deal costs and leasing overhead during the six months ended June 30, 2026.
Current report
Depreciation and Amortization
Current report
Depreciation and amortization increased $13.2 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to the following:
Current report
•An increase of $14.8 million attributable to the Acquisition Properties;
Current report
•An increase of $10.2 million attributable to the Re/Development Properties, primarily due to the one property added to the stabilized portfolio in the first quarter of 2026; and
Current report
•An increase of $2.6 million attributable to the Same Property Portfolio, primarily due to revenue recognition commencing for two tenants in the Seattle region in third quarter of 2025 and first quarter of 2026, and four tenants in the Los Angeles region during the first quarter of 2026.
Current report
•A decrease of $14.4 million attributable to the Disposition Properties.
Current report
Interest Income
Showing the first 40 of 49 passages. Open the source sections for the rest.
Removed paragraphs (16)
Previous report
As of March 31, 2026, the following assets were excluded from our stabilized portfolio:
Previous report
(1)See Note 2 “Dispositions and Real Estate Held for Sale” to our consolidated financial statements included in this report for additional information.
Previous report
•A decrease of $10.4 million, attributable to the Disposition and Held for Sale Properties; and
Previous report
•An increase of $6.0 million, attributable to the Acquisition Properties; and
Previous report
•$3.1 million increase in straight-line rent, primarily due to a $6.0 million increase from newly commenced leases with rent abatements, partially offset by aging leases where cash rent now exceeds GAAP rent on a straight-line basis;
Previous report
•$1.9 million increase in revenue associated with tenant creditworthiness considerations that resulted in higher non-recurring charges in 2025;
Previous report
•$0.8 million increase in revenues from recoverable operating expenses;
Previous report
•$0.3 million increase in settlement and restoration fee income.
Previous report
•$2.1 million decrease in net base rent, primarily due to the above-mentioned $6.0 million increase in abated rent, mainly in the San Francisco Bay Area and Seattle regions, partially offset by a $3.6 million increase from higher rates and a $0.3 million increase due to increased occupancy; and
Previous report
•$0.3 million increase in property expenses and ground rent expense.
Previous report
General and administrative expenses increased $3.8 million, or 22.5%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to an increase in compensation expense of $2.7 million resulting from increased headcount and a reduction in the amount of labor capitalized to development and redevelopment properties and capital improvement projects.
Previous report
•An increase of $4.6 million attributable to the Re/Development Properties, primarily due to the one property added to the stabilized portfolio in the first quarter of 2026; and
Previous report
•A decrease of $6.1 million attributable to the Disposition and Held for Sale Properties.
Previous report
Interest income decreased $0.2 million, or 15.9%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to lower average interest rates on our interest-bearing accounts.
Previous report
(3) The maturity date may be extended by a 12-month period, at the Operating Partnership’s election.
Previous report
(4)The maturity date may be extended by a 12-month period, at the Operating Partnership’s election.
Reworded paragraphs (52)
Previous wording
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 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, whic…
Excerpt shortened here; the source contains the full paragraph.
Current wording
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, whi…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
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 in as of March 31, 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 March 31, 2026, all of our properties are held in fee except for the fourteen office buildings that are held subject to long-term ground leases.
Current wording
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.
Previous wording
As of March 31, 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.
Current wording
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.
Previous wording
(1)Excludes Kilroy Sabre Springs, which was classified as held for sale as of December 31, 2025 and not included in the stabilized portfolio.
Current wording
(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.
Previous wording
(2) KOP 2 stabilized during the three months ended March 31, 2026. Excluding KOP 2, the average stabilized portfolio occupancy was 81.4% for the three months ended March 31, 2026.
Current wording
(2) Kilroy Oyster Point Phase 2 (“KOP 2”) stabilized during the three and six months ended June 30, 2026. Excluding KOP 2, the average stabilized portfolio occupancy was 81.4% for the three and six months ended June 30, 2026.
Previous wording
Refer to our 2025 Annual Report on Form 10-K for information about our 20 largest tenants. There have been no significant changes to these 20 largest tenants outside of the ordinary course of business during the three months ended March 31, 2026.
Current wording
Refer to our 2025 Annual Report on Form 10-K for information about our 20 largest tenants. There have been no significant changes to these 20 largest tenants outside of the ordinary course of business during the six months ended June 30, 2026.
Previous wording
The amount of rental income generated by our properties depends principally on our ability to maintain current occupancy rates and to lease currently available space, including space at newly developed or redeveloped properties and newly acquired properties. The amount of rental income we generate also depends on our ability to maintain or increase rental rates at our properties. Negative trends in one or more of these factors could adversely affect our rental income in future periods. The following tables set forth certain information regarding leasing activity during the three months ended March 31, 2026:
Current wording
The amount of rental income generated by our properties depends principally on our ability to maintain current occupancy rates and to lease currently available space, including space at newly developed or redeveloped properties and newly acquired properties. The amount of rental income we generate also depends on our ability to maintain or increase rental rates at our properties. Negative trends in one or more of these factors could adversely affect our rental income in future periods. The following tables set forth certain information regarding leasing activity during the three and six months ended June 30, 2026:
Previous wording
(1)Includes 100% of the Consolidated Property Partnerships. Excludes leases with a lease term of less than one year (i.e. short-term leases). During the three months ended March 31, 2026, the Company signed 70,154 square feet of short-term leases, comprised of 32,537 square feet of new leasing on vacant space and 37,617 square feet of renewal leasing.
Current wording
(1)Includes 100% of the Consolidated Property Partnerships. Excludes leases with a lease term of less than one year (i.e. short-term leases). During the three months ended June 30, 2026, the Company signed 40,147 square feet of short-term leases, comprised of 32,128 square feet of new leasing on vacant space and 8,019 square feet of renewal leasing. During the six months ended June 30, 2026, the Company signed 110,289 square feet of short-term leases, comprised of 64,557 square feet of new leasing on vacant space and 45,732 square feet of renewal leasing.
Previous wording
Adjusting for leases that have been backfilled or released to a subtenant as of March 31, 2026 but not yet commenced, the remaining 2026, 2027, and 2028 expirations would be 727,003, 988,946, and 1,241,431 square feet, respectively.
Current wording
Adjusting for leases that have been backfilled or re-leased to a subtenant as of June 30, 2026 but not yet commenced, the remaining 2026, 2027, and 2028 expirations would be 248,421, 1,015,123, and 1,297,768 square feet, respectively.
Previous wording
During the three months ended March 31, 2026, we completed and added the following development project to our stabilized portfolio:
Current wording
During the first quarter of the six months ended June 30, 2026, we completed and added the following development project to the stabilized development portfolio:
Previous wording
•Kilroy Oyster Point (Phase 2), South San Francisco, California. In June 2021, we commenced construction on Phase 2 of this 39-acre life science campus situated on the waterfront in South San Francisco and progressed the property to the tenant improvement phase during the first quarter of 2025. The second phase encompasses 871,738 square feet of office and life science space across three buildings with a total estimated investment of $1.2 billion. We added the property to the stabilized portfolio upon reaching one year since substantial completion. The project is 5% occupied and 44% leased.
Current wording
•Kilroy Oyster Point (Phase 2), South San Francisco, California. In June 2021, we commenced construction on Phase 2 of this 39-acre life science campus situated on the waterfront in South San Francisco and progressed the property to the tenant improvement phase during the first quarter of 2025. The second phase encompasses 871,738 square feet of office and life science space across three buildings with a total estimated investment of $1.2 billion. We added the property to the stabilized portfolio upon reaching one year since substantial completion. The project is 7% occupied and 49% leased.
Previous wording
(4)Subject to signed purchase and sale agreements and non-refundable deposits as of the date of this filing. Both development sites are anticipated to close upon receipt of residential entitlements and permits, which is expected to occur beginning in phases in 2026.
Current wording
(4)Subject to signed purchase and sale agreements and non-refundable deposits as of the date of this filing. Both development sites are anticipated to close upon receipt of residential entitlements and permits, which is expected to occur beginning in phases in late 2026.
Previous wording
(1)The average qualifying costs for the three months ended March 31, 2026 includes costs incurred for KOP 2 prior to stabilization.
Current wording
(1)The average qualifying costs for the six months ended June 30, 2026 includes costs incurred for KOP 2 prior to stabilization in Q1 2026.
Previous wording
•Disposition and Held for Sale Properties – includes the results of the following:
Current wording
•Disposition Properties – includes the results of the following:
Previous wording
◦Two residential properties, totaling 393 residential units, classified as held for sale as of March 31, 2026.
Current wording
◦Two residential properties, totaling 393 residential units, disposed of in the second quarter of 2026.
Previous wording
The following tables summarize our Net Operating Income for our total portfolio for the three months ended March 31, 2026 and 2025:
Current wording
The following tables summarize our Net Operating Income for our total portfolio:
Previous wording
Net Operating Income decreased $1.8 million, or 1.0%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily resulting from:
Current wording
Net Operating Income decreased $10.5 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily resulting from:
Previous wording
•A decrease of $2.7 million, attributable to the Re/Development Properties, primarily due to one development property added to the stabilized portfolio in the first quarter of 2026, which resulted in the cessation of cost capitalization.
Current wording
•A decrease of $4.0 million attributable to the Re/Development Properties, primarily due to one development property with limited occupancy added to the stabilized portfolio in the first quarter of 2026, which resulted in the cessation of cost capitalization.
Previous wording
•An increase of $5.3 million, or 3.2%, attributable to the Same Property Portfolio, which was driven by the following activity:
Current wording
•An increase of $0.2 million attributable to the Same Property Portfolio, which was driven by the following activity:
Previous wording
•An increase in total operating revenues of $4.6 million, or 1.9%, primarily due to a(n):
Current wording
•An increase in total operating revenues of $2.9 million, primarily due to a(n):
Previous wording
•A decrease in property and related expenses of $0.7 million, or 0.9%, primarily due to a(n):
Current wording
•An increase in property and related expenses of $2.7 million, primarily due to a(n):
Previous wording
Lease termination fees decreased $0.1 million, or 21.3%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to a lease termination fee recognized for one tenant in 2025 in the Seattle region.
Current wording
Lease termination fees decreased $10.4 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to a large lease termination fee recognized for one of the tenants in the San Francisco region in the second quarter of 2025.
Previous wording
Depreciation and amortization increased $7.2 million, or 8.3%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to the following:
Current wording
Depreciation and amortization increased $5.9 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to the following:
Previous wording
•An increase of $7.5 million attributable to a full quarter of expense related to the Acquisition Properties;
Current wording
•An increase of $7.3 million attributable to a full quarter of expense related to the Acquisition Properties;
Previous wording
•An increase of $1.2 million attributable to the Same Property Portfolio, primarily due to revenue recognition commencing for one tenant in the Seattle region in the third quarter of 2025.
Current wording
•An increase of $1.3 million attributable to the Same Property Portfolio, primarily due to revenue recognition commencing for one tenant in the Seattle region in the third quarter of 2025.
Previous wording
Capitalized interest decreased $6.6 million, or 31.9%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to the stabilization of the one development property added to the stabilized portfolio during the three months ended March 31, 2026, at which point we stopped capitalizing interest. Capitalized interest will vary based on the current status of active development or redevelopment projects and our future development pipeline. For additional information about the potential impact of inflation on our interest expense and construction costs, and the impact on our business, financial condition, results of operations, cash flows, liquidity, and ability to satisfy our debt service obligations, refer to “Part I, Item IA. Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2025.
Current wording
Capitalized interest decreased $9.7 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to the stabilization of the one development property added to the stabilized portfolio during the first quarter of 2026, at which point we stopped capitalizing interest. Capitalized interest will vary based on the current status of active development or redevelopment projects and our future development pipeline. For additional information about the potential impact of inflation on our interest expense and construction costs, and the impact on our business, financial condition, results of operations, cash flows, liquidity, and ability to satisfy our debt service obligations, refer to “Part I, Item 1A. Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2025.
Previous wording
•$0.7 million increase in transient parking income and residential income; and
Current wording
•$1.3 million increase in revenues primarily due to parking and residential income; and
Previous wording
•$0.1 million decrease in amortization of deferred income and tenant funded improvements, mainly resulting from tenant move outs.
Current wording
•$1.9 million decrease in amortization of deferred income and tenant funded improvements, mainly resulting from tenant move outs;
Previous wording
•$1.0 million decrease in real estate taxes, primarily due to a net increase in refunds of $1.4 million received in 2026, partially offset by a $0.4 million increase resulting from higher assessed property values.
Current wording
•$0.7 million decrease in real estate taxes, primarily due to an increase in refunds of $1.4 million received in 2026, offset partially by a $0.7 million increase resulting from higher assessed property values.
Previous wording
Gross interest expense, before the effect of capitalized interest, increased $0.8 million, or 1.6%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to an increase in the weighted average interest rate for the three months ended March 31, 2026.
Current wording
Gross interest expense, before the effect of capitalized interest, increased $1.9 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to additional loan fee amortization and an increase in weighted average interest rate for the six months ended June 30, 2026.
Previous wording
As of March 31, 2026, we had approximately $192.9 million in cash and cash equivalents and $1.1 billion available under our unsecured revolving credit facility. We believe that our available liquidity makes us well positioned to navigate any additional future uncertainties.
Current wording
As of June 30, 2026, the Company had approximately $1.6 billion in available liquidity, including $1.3 billion available under the revolving credit facility, $50.0 million available under the unsecured term loan facility, and $253.8 million of cash and cash equivalents. We believe that our available liquidity makes us well positioned to navigate any additional future uncertainties.
Previous wording
As of March 31, 2026, our total debt as a percentage of total market capitalization was 58.3%, as shown in the following table:
Current wording
As of June 30, 2026, our total debt as a percentage of total market capitalization was 51.0%, as shown in the following table:
Previous wording
(1) Represents gross aggregate principal amount due at maturity before the effect of the following at March 31, 2026: $23.8 million of unamortized deferred financing costs for the unsecured term loan facility, unsecured senior notes, and secured debt and $10.6 million of unamortized discounts for the unsecured senior notes.
Current wording
(1) Represents gross aggregate principal amount due at maturity before the effect of the following at June 30, 2026: $24.8 million of unamortized deferred financing costs for the unsecured term loan facility, unsecured senior notes, and secured debt and $10.3 million of unamortized discounts for the unsecured senior notes.
Previous wording
(4) In April 2026, repaid the outstanding $50.0 million of 4.300% Private Placement Senior Notes Series A due July 2026, at par. Refer to Note 16 “Subsequent Events” to our consolidated financial statements included in this report for additional information.
Current wording
(3) In July 2026, repaid the outstanding $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026, at par. Refer to Note 16 “Subsequent Events” to our consolidated financial statements for additional information.
Previous wording
(6) Value based on closing price per share of our common stock of $28.21, as of March 31, 2026.
Current wording
(5) Value based on closing price per share of our common stock of $37.47, as of June 30, 2026.
Previous wording
Unsecured Revolving Credit Facility and Term Loan Facility
Current wording
Unsecured Revolving Credit and Term Loan Facilities
Previous wording
(1)Remaining and total borrowing capacity are further reduced by the amount of our outstanding letters of credit, which total approximately $5.2 million as of March 31, 2026 and December 31, 2025. We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $500.0 million under an accordion feature pursuant to the terms of the unsecured revolving credit facility.
Current wording
(1)Remaining and total borrowing capacity are further reduced by the amount of our outstanding letters of credit, which total approximately $5.2 million as of June 30, 2026 and December 31, 2025. We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $450.0 million and $500.0 million as of June 30, 2026 and December 31, 2025, respectively, under an accordion feature pursuant to the terms of the unsecured revolving credit facility.
Previous wording
(2)Our unsecured revolving credit facility interest rate was calculated using the Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment of 0.10% (together “Adjusted SOFR”) and a margin of 1.100% based on our credit rating as of March 31, 2026 and December 31, 2025. We may be entitled to a temporary 0.01% reduction in the interest rate, provided we meet certain sustainability goals with respect to the ongoing reduction of greenhouse gas emissions.
Current wording
(2)Our unsecured revolving credit facility interest rate was calculated using the Secured Overnight Financing Rate (“SOFR”) and a margin of 1.000% based on our credit rating as of June 30, 2026, and using SOFR plus a SOFR adjustment of 0.10% (together “Adjusted SOFR”) and a margin of 1.100% based on our credit rating as of December 31, 2025.
Previous wording
(3)Our annual facility fee is paid on a quarterly basis and is calculated based on total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs in connection with the amendment and restatement of the unsecured revolving credit facility in 2024. These costs are included in Prepaid expenses and other assets, net on our consolidated balance sheets, and will continue to be amortized through the maturity date.
Current wording
(3)Our annual facility fee is paid on a quarterly basis and is calculated based on total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs in connection with the amendment and restatement of the unsecured revolving credit facility, which are included in Prepaid expenses and other assets, net on our consolidated balance sheets, and will continue to be amortized through the amended maturity date.
Previous wording
The following table summarizes the balance and terms of our 2024 Term Loan Facility:
Current wording
The following table summarizes the balance and terms of our Term Loan Facility:
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
•$1.8 million decrease in amortization of deferred income and tenant funded improvements, mainly resulting from tenant move outs; and
Current report — wording carried from elsewhere
•$0.3 million increase in real estate taxes, primarily due to higher assessed property values.
Current report — wording carried from elsewhere
The following table summarizes our Net Operating Income for our total portfolio:
Current report — wording carried from elsewhere
The following tables summarize our Net Operating Income for our total portfolio:
Current report — wording carried from elsewhere
•A decrease of $6.8 million attributable to the Re/Development Properties, primarily due to one development property with limited occupancy added to the stabilized portfolio in the first quarter of 2026, which resulted in the cessation of cost capitalization.
Current report — wording carried from elsewhere
•An increase of $5.5 million attributable to the Same Property Portfolio, which was driven by the following activity:
Current report — wording carried from elsewhere
•An increase in total operating revenues of $7.6 million primarily due to a(n):
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•An increase in property and related expenses of $2.0 million primarily due to a(n):
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The following table sets forth our gross interest expense and capitalized interest:
Current report — wording carried from elsewhere
Capitalized interest decreased $16.3 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to the stabilization of the one development property added to the stabilized portfolio during the first quarter of 2026, at which point we stopped capitalizing interest. Capitalized interest will vary based on the current status of active development or redevelopment projects and our future development pipeline. For additional information about the potential impact of inflation on our interest expense and construction costs, and the impact on our business, financial condition, results of operations, cash flows, liquidity, and ability to satisfy our debt service obligations, refer to “Part I, Item 1A. Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2025.
Current report — wording carried from elsewhere
In April 2026, the Company repaid the outstanding $50.0 million of 4.300% Private Placement Senior Notes Series A due July 2026, at par.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Our stabilized portfolio also excludes our future development pipeline, which, as of March 31, 2026, was comprised of nine potential development sites.
Previous report — wording carried elsewhere
(1)Kilroy Oyster Point Phase 2 (“KOP 2”) stabilized during the three months ended March 31, 2026. The total project was 5% occupied and 44% leased as of March 31, 2026.