10-Q 1 krc-20220930.htm 10-Q krc-20220930
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                  to                 
Commission File Number: 1-12675 (Kilroy Realty Corporation)
Commission File Number: 000-54005 (Kilroy Realty, L.P.)
KILROY REALTY CORPORATION
KILROY REALTY, L.P.
(Exact name of registrant as specified in its charter)
Kilroy Realty CorporationMaryland95-4598246
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
Kilroy Realty, L.P.Delaware95-4612685
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)

12200 W. Olympic Boulevard, Suite 200, Los Angeles, California, 90064
(Address of principal executive offices) (Zip Code)

(310) 481-8400
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
RegistrantTitle of each className of each exchange on which registeredTicker Symbol
Kilroy Realty CorporationCommon Stock, $.01 par valueNew York Stock ExchangeKRC
Securities registered pursuant to Section 12(g) of the Act:
RegistrantTitle of each class
Kilroy Realty, L.P.Common Units Representing Limited Partnership Interests
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    
Kilroy Realty Corporation    Yes  ☑    No   ☐
Kilroy Realty, L.P.         Yes  ☑    No   ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    
Kilroy Realty Corporation     Yes  ☑    No   ☐
Kilroy Realty, L.P.         Yes  ☑    No   ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Kilroy Realty Corporation
Large accelerated filer ☑    Accelerated filer ☐
Non-accelerated filer ☐    Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Kilroy Realty, L.P.
Large accelerated filer ☐    Accelerated filer ☐
Non-accelerated filer ☑    Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    
Kilroy Realty Corporation Yes  ☐     No   ☑
Kilroy Realty, L.P. Yes  ☐     No   ☑
As of October 21, 2022, 116,877,453 shares of Kilroy Realty Corporation common stock, par value $.01 per share, were outstanding.
 


EXPLANATORY NOTE
This report combines the quarterly reports on Form 10-Q for the period ended September 30, 2022 of Kilroy Realty Corporation and Kilroy Realty, L.P. Unless stated otherwise or the context otherwise requires, references to “Kilroy Realty Corporation” or the “Company,” “we,” “our,” and “us” mean Kilroy Realty Corporation, a Maryland corporation, and its controlled and consolidated subsidiaries, and references to “Kilroy Realty, L.P.” or the “Operating Partnership” mean Kilroy Realty, L.P., a Delaware limited partnership and its controlled and consolidated subsidiaries.
The Company is a real estate investment trust, or REIT, and the general partner of the Operating Partnership. As of September 30, 2022, the Company owned an approximate 99.0% common general partnership interest in the Operating Partnership. The remaining approximate 1.0% common limited partnership interests are owned by non-affiliated investors and certain directors and officers of the Company. As the sole general partner of the Operating Partnership, the Company exercises exclusive and complete discretion over the Operating Partnership’s day-to-day management and control and can cause it to enter into certain major transactions, including acquisitions, dispositions, and refinancings and cause changes in its line of business, capital structure and distribution policies.
There are a few differences between the Company and the Operating Partnership that are reflected in the disclosures in this Form 10-Q. We believe it is important to understand the differences between the Company and the Operating Partnership in the context of how the Company and the Operating Partnership operate as an interrelated, consolidated company. The Company is a REIT, the only material asset of which is the partnership interests it holds in the Operating Partnership. As a result, the Company generally does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing equity from time to time and guaranteeing certain debt of the Operating Partnership. The Company itself is not directly obligated under any indebtedness, but generally guarantees all of the debt of the Operating Partnership. The Operating Partnership owns substantially all of the assets of the Company either directly or through its subsidiaries, conducts the operations of the Company’s business and is structured as a limited partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Company, which the Company generally contributes to the Operating Partnership in exchange for units of partnership interest, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, by the Operating Partnership’s incurrence of indebtedness or through the issuance of units of partnership interest.
Noncontrolling interests, stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of the Company and those of the Operating Partnership. The common limited partnership interests in the Operating Partnership are accounted for as partners’ capital in the Operating Partnership’s financial statements and, to the extent not held by the Company, as noncontrolling interests in the Company’s financial statements. The differences between stockholders’ equity, partners’ capital and noncontrolling interest result from the differences in the equity issued by the Company and the Operating Partnership.
We believe combining the quarterly reports on Form 10-Q of the Company and the Operating Partnership into this single report results in the following benefits:
•Combined reports better reflect how management and the analyst community view the business as a single operating unit;
•Combined reports enhance investors’ understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management;
•Combined reports are more efficient for the Company and the Operating Partnership and result in savings in time, effort and expense; and
•Combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review.
To help investors understand the significant differences between the Company and the Operating Partnership, this report presents the following separate sections for each of the Company and the Operating Partnership:
•consolidated financial statements;
•the following notes to the consolidated financial statements:
◦Note 5, Stockholders’ Equity of the Company;
◦Note 7, Partners’ Capital of the Operating Partnership;
◦Note 12, Net Income Available to Common Stockholders Per Share of the Company;
◦Note 13, Net Income Available to Common Unitholders Per Unit of the Operating Partnership;
i

◦Note 14, Supplemental Cash Flow Information of the Company; and
◦Note 15, Supplemental Cash Flow Information of the Operating Partnership;
•“Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
◦—Liquidity and Capital Resources of the Company;” and
◦—Liquidity and Capital Resources of the Operating Partnership.”
This report also includes separate sections under “Part I – Financial Information, Item 4. Controls and Procedures” and separate Exhibit 31 and Exhibit 32 certifications for the Company and the Operating Partnership to establish that the Chief Executive Officer and the Chief Financial Officer of each entity have made the requisite certifications and that the Company and Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and 18 U.S.C. §1350.

Available Information

We use our website (www.kilroyrealty.com) as a routine channel of distribution of company information, including press releases, presentations, and supplemental information, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor our website in addition to following press releases, SEC filings, and public conference calls and webcasts. Investors and others can receive notifications of new information posted on our investor relations website in real time by signing up for email alerts.
ii

KILROY REALTY CORPORATION AND KILROY REALTY, L.P.
QUARTERLY REPORT FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022
TABLE OF CONTENTS
 
  Page
PART I – FINANCIAL INFORMATION
Item 1.
  
 
Item 1.
Item 2.  
Item 3.
Item 4.
PART II – OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.


PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) OF KILROY REALTY CORPORATION

KILROY REALTY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands, except share data)
 September 30, 2022December 31, 2021
ASSETS
REAL ESTATE ASSETS (Notes 2 and 3):  
Land and improvements$1,743,194 $1,731,982 
Buildings and improvements7,693,247 7,543,585 
Undeveloped land and construction in progress2,183,071 2,017,126 
Total real estate assets held for investment11,619,512 11,292,693 
Accumulated depreciation and amortization(2,150,060)(2,003,656)
Total real estate assets held for investment, net9,469,452 9,289,037 
CASH AND CASH EQUIVALENTS249,981 414,077 
RESTRICTED CASH13,009 13,006 
MARKETABLE SECURITIES (Note 11)22,390 27,475 
CURRENT RECEIVABLES, NET15,885 14,386 
DEFERRED RENT RECEIVABLES, NET442,987 405,665 
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET214,484 234,458 
RIGHT OF USE GROUND LEASE ASSETS126,708 127,302 
PREPAID EXPENSES AND OTHER ASSETS, NET65,096 57,991 
TOTAL ASSETS$10,619,992 $10,583,397 
LIABILITIES AND EQUITY
LIABILITIES:
Secured debt, net (Notes 4 and 11)$244,316 $248,367 
Unsecured debt, net (Notes 4 and 11)3,823,532 3,820,383 
Accounts payable, accrued expenses and other liabilities424,087 391,264 
Ground lease liabilities125,065 125,550 
Accrued dividends and distributions (Note 16)64,271 61,850 
Deferred revenue and acquisition-related intangible liabilities, net176,105 171,151 
Rents received in advance and tenant security deposits82,839 74,962 
Total liabilities4,940,215 4,893,527 
COMMITMENTS AND CONTINGENCIES (Note 10)
EQUITY:
Stockholders’ Equity (Note 5):
Common stock, $.01 par value, 280,000,000 shares authorized, 116,877,453 and 116,464,169 shares issued and outstanding, respectively
1,169 1,165 
Additional paid-in capital5,162,088 5,155,232 
Retained earnings276,138 283,663 
Total stockholders’ equity5,439,395 5,440,060 
Noncontrolling Interests (Notes 1 and 6):
Common units of the Operating Partnership53,475 53,746 
Noncontrolling interests in consolidated property partnerships186,907 196,064 
Total noncontrolling interests240,382 249,810 
Total equity5,679,777 5,689,870 
TOTAL LIABILITIES AND EQUITY$10,619,992 $10,583,397 




See accompanying notes to consolidated financial statements.
1

KILROY REALTY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except share and per share data)
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
REVENUES    
Rental income (Note 9)$272,546 $230,720 $804,330 $689,849 
Other property income3,412 1,606 8,313 4,106 
Total revenues275,958 232,326 812,643 693,955 
EXPENSES    
Property expenses52,075 40,842 147,421 120,183 
Real estate taxes27,415 24,153 78,718 71,528 
Ground leases1,771 1,708 5,473 5,559 
General and administrative expenses (Note 8)23,524 22,990 68,425 69,482 
Leasing costs1,015 798 3,475 2,373 
Depreciation and amortization81,140 73,213 266,215 222,734 
Total expenses186,940 163,704 569,727 491,859 
OTHER INCOME (EXPENSES)     
Interest and other income, net295 976 501 3,686 
Interest expense (Note 4)(19,982)(16,105)(60,728)(59,829)
Gain on sale of depreciable operating property (Note 3)17,329 — 17,329 457,831 
      Total other (expenses) income(2,358)(15,129)(42,898)401,688 
NET INCOME86,660 53,493 200,018 603,784 
Net income attributable to noncontrolling common units of the Operating Partnership(664)(460)(1,695)(5,700)
Net income attributable to noncontrolling interests in consolidated property partnerships(6,239)(6,005)(18,333)(17,586)
Total income attributable to noncontrolling interests(6,903)(6,465)(20,028)(23,286)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$79,757 $47,028 $179,990 $580,498 
Net income available to common stockholders per share – basic (Note 12)$0.68 $0.40 $1.53 $4.98 
Net income available to common stockholders per share – diluted (Note 12)$0.68 $0.40 $1.53 $4.96 
Weighted average common shares outstanding – basic (Note 12)116,872,953 116,456,796 116,782,621 116,418,113 
Weighted average common shares outstanding – diluted (Note 12)117,242,411 116,962,680 117,163,149 116,894,434 























See accompanying notes to consolidated financial statements.
2

KILROY REALTY CORPORATION
CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited; in thousands, except share and per share/unit data)


Common StockTotal
Stock-
holders’
Equity		Noncontrolling InterestsTotal
Equity
Number of
Shares		Common
Stock		Additional
Paid-in
Capital		Retained Earnings
BALANCE AS OF DECEMBER 31, 2021116,464,169 $1,165 $5,155,232 $283,663 $5,440,060 $249,810 $5,689,870 
Net income53,128 53,128 6,255 59,383 
Issuance of share-based compensation awards1,942 1,942 1,942 
Non-cash amortization of share-based compensation (Note 8)6,598 6,598 6,598 
Settlement of restricted stock units for shares of common stock459,050 5 (5)— — 
Repurchase of common stock and restricted stock units(207,139)(3)(13,991)(13,994)(13,994)
Distributions to noncontrolling interests in consolidated property partnerships— (14,842)(14,842)
Adjustment for noncontrolling interest192 192 (192)— 
Dividends declared per common share and common unit ($0.52 per share/unit)
(62,598)(62,598)(598)(63,196)
BALANCE AS OF MARCH 31, 2022116,716,080 1,167 5,149,968 274,193 5,425,328 240,433 5,665,761 
Net income47,105 47,105 6,870 53,975 
Issuance of share-based compensation awards635 635 635 
Non-cash amortization of share-based compensation (Note 8)9,665 9,665 9,665 
Settlement of restricted stock units for shares of common stock273,382 2 (2)— — 
Repurchase of common stock, stock options and restricted stock units(118,492)— (8,660)(8,660)(8,660)
Distributions to noncontrolling interests in consolidated property partnerships— (6,948)(6,948)
Adjustment for noncontrolling interest99 99 (99)— 
Dividends declared per common share and common unit ($0.52 per share/unit)
(61,278)(61,278)(599)(61,877)
BALANCE AS OF JUNE 30, 2022116,870,970 1,169 5,151,705 260,020 5,412,894 239,657 5,652,551 
Net income79,757 79,757 6,903 86,660 
Issuance of share-based compensation awards505 505 505 
Non-cash amortization of share-based compensation (Note 8)10,287 10,287 10,287 
Settlement of restricted stock units for shares of common stock11,930 — — — — 
Repurchase of common stock, stock options and restricted stock units(5,447)— (267)(267)(267)
Distributions to noncontrolling interests in consolidated property partnerships— (5,700)(5,700)
Adjustment for noncontrolling interest(142)(142)142 — 
Dividends declared per common share and common unit ($0.54 per share/unit) (Note 16)
(63,639)(63,639)(620)(64,259)
BALANCE AS OF SEPTEMBER 30, 2022116,877,453 $1,169 $5,162,088 $276,138 $5,439,395 $240,382 $5,679,777 
3

Common StockTotal
Stock-
holders’
Equity		Noncontrolling InterestsTotal
Equity
Number of
Shares		Common
Stock		Additional
Paid-in
Capital		Retained Earnings (Distributions
in Excess of
Earnings)
BALANCE AS OF DECEMBER 31, 2020116,035,827 $1,160 $5,131,916 $(103,133)$5,029,943 $247,378 $5,277,321 
Net income 497,631 497,631 9,780 507,411 
Issuance of share-based compensation awards1,950 1,950 1,950 
Non-cash amortization of share-based compensation9,604 9,604 9,604 
Settlement of restricted stock units for shares of common stock 769,701 8 (8)— — 
Repurchase of common stock and restricted stock units(355,158)(3)(21,134)(21,137)(21,137)
Distributions to noncontrolling interests in consolidated property partnerships— (11,680)(11,680)
Adjustment for noncontrolling interest256 256 (256)— 
Dividends declared per common share and common unit ($0.500 per share/unit)
(60,002)(60,002)(575)(60,577)
BALANCE AS OF MARCH 31, 2021116,450,370 1,165 5,122,584 334,496 5,458,245 244,647 5,702,892 
Net income 35,839 35,839 7,041 42,880 
Issuance of share-based compensation awards645 645 645 
Non-cash amortization of share-based compensation11,193 11,193 11,193 
Settlement of restricted stock units for shares of common stock 3,840 — — — — 
Distributions to noncontrolling interests in consolidated property partnerships— (4,692)(4,692)
Adjustment for noncontrolling interest(102)(102)102 — 
Dividends declared per common share and common unit ($0.500 per share/unit)
(58,877)(58,877)(576)(59,453)
BALANCE AS OF JUNE 30, 2021116,454,210 1,165 5,134,320 311,458 5,446,943 246,522 5,693,465 
Net income 47,028 47,028 6,465 53,493 
Issuance of share-based compensation awards650 650 650 
Non-cash amortization of share-based compensation11,477 11,477 11,477 
Settlement of restricted stock units for shares of common stock 11,743 — — — — 
Repurchase and cancellation of common stock, stock options, and restricted stock units(4,270)— (282)(282)(282)
Contributions from noncontrolling interests in consolidated property partnerships— 1,591 1,591 
Distributions to noncontrolling interests in consolidated property partnerships— (7,922)(7,922)
Adjustment for noncontrolling interest(116)(116)116 — 
Dividends declared per common share and common unit ($0.52 per share/unit)
(61,236)(61,236)(598)(61,834)
BALANCE AS OF SEPTEMBER 30, 2021116,461,683 $1,165 $5,146,049 $297,250 $5,444,464 $246,174 $5,690,638 














See accompanying notes to consolidated financial statements.
4

KILROY REALTY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)
 
 Nine Months Ended September 30,
 20222021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$200,018 $603,784 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of real estate assets and leasing costs261,129 218,171 
Depreciation of non-real estate furniture, fixtures and equipment5,086 4,563 
Revenue reversals for doubtful accounts, net (Note 9)191 2,830 
Non-cash amortization of share-based compensation awards21,635 26,486 
Non-cash amortization of deferred financing costs and debt discounts2,442 2,232 
Non-cash amortization of net below market rents(8,171)(3,704)
Gain on sale of depreciable operating property (Note 3)(17,329)(457,831)
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements(14,221)(12,982)
Straight-line rents(38,239)(41,238)
Amortization of right of use ground lease assets594 886 
Net change in other operating assets(5,323)(5,767)
Net change in other operating liabilities76,418 70,130 
Net cash provided by operating activities484,230 407,560 
CASH FLOWS FROM INVESTING ACTIVITIES:  
Expenditures for acquisitions of development properties and undeveloped land (Note 2)(40,033)(586,927)
Expenditures for development and redevelopment properties and undeveloped land(334,711)(436,839)
Expenditures for acquisitions of operating properties (Note 2)— (537,429)
Expenditures for operating properties and other capital assets(65,526)(90,280)
Net proceeds received from disposition (Note 3)33,416 1,013,359 
Net decrease in acquisition-related deposits— 1,000 
Net cash used in investing activities(406,854)(637,116)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Financing costs(3,083)(7,801)
Repurchase of common stock and restricted stock units(22,921)(21,419)
Distributions to noncontrolling interests in consolidated property partnerships(27,497)(24,303)
Dividends and distributions paid to common stockholders and common unitholders(183,822)(176,196)
Principal payments and repayments of secured debt (4,146)(3,987)
Contributions from noncontrolling interests in consolidated property partnerships— 1,591 
Net cash used in financing activities(241,469)(232,115)
Net decrease in cash and cash equivalents and restricted cash(164,093)(461,671)
Cash and cash equivalents and restricted cash, beginning of period427,083 823,130 
Cash and cash equivalents and restricted cash, end of period$262,990 $361,459 
















See accompanying notes to consolidated financial statements.
5



ITEM 1: FINANCIAL STATEMENTS (UNAUDITED) OF KILROY REALTY, L.P.

KILROY REALTY, L.P.
CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands, except unit data)
 
 September 30, 2022December 31, 2021
ASSETS
REAL ESTATE ASSETS (Notes 2 and 3):
Land and improvements$1,743,194 $1,731,982 
Buildings and improvements7,693,247 7,543,585 
Undeveloped land and construction in progress2,183,071 2,017,126 
Total real estate assets held for investment11,619,512 11,292,693 
Accumulated depreciation and amortization(2,150,060)(2,003,656)
Total real estate assets held for investment, net9,469,452 9,289,037 
CASH AND CASH EQUIVALENTS249,981 414,077 
RESTRICTED CASH13,009 13,006 
MARKETABLE SECURITIES (Note 11)22,390 27,475 
CURRENT RECEIVABLES, NET15,885 14,386 
DEFERRED RENT RECEIVABLES, NET442,987 405,665 
DEFERRED LEASING COSTS AND ACQUISITION-RELATED INTANGIBLE ASSETS, NET214,484 234,458 
RIGHT OF USE GROUND LEASE ASSETS126,708 127,302 
PREPAID EXPENSES AND OTHER ASSETS, NET65,096 57,991 
TOTAL ASSETS$10,619,992 $10,583,397 
LIABILITIES AND CAPITAL
LIABILITIES:
Secured debt, net (Notes 4 and 11)$244,316 $248,367 
Unsecured debt, net (Notes 4 and 11)3,823,532 3,820,383 
Accounts payable, accrued expenses and other liabilities424,087 391,264 
Ground lease liabilities125,065 125,550 
Accrued distributions (Note 16)64,271 61,850 
Deferred revenue and acquisition-related intangible liabilities, net176,105 171,151 
Rents received in advance and tenant security deposits82,839 74,962 
Total liabilities4,940,215 4,893,527 
COMMITMENTS AND CONTINGENCIES (Note 10)
CAPITAL:
Common units, 116,877,453 and 116,464,169 held by the general partner and 1,150,574 and 1,150,574
held by common limited partners issued and outstanding, respectively (Note 7)
5,492,870 5,493,806 
Noncontrolling interests in consolidated property partnerships (Note 1)186,907 196,064 
Total capital5,679,777 5,689,870 
TOTAL LIABILITIES AND CAPITAL$10,619,992 $10,583,397 













See accompanying notes to consolidated financial statements.
6

KILROY REALTY, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except unit and per unit data)

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
REVENUES
Rental income (Note 9)$272,546 $230,720 $804,330 $689,849 
Other property income3,412 1,606 8,313 4,106 
Total revenues275,958 232,326 812,643 693,955 
EXPENSES
Property expenses52,075 40,842 147,421 120,183 
Real estate taxes27,415 24,153 78,718 71,528 
Ground leases1,771 1,708 5,473 5,559 
General and administrative expenses (Note 8)23,524 22,990 68,425 69,482 
Leasing costs1,015 798 3,475 2,373 
Depreciation and amortization81,140 73,213 266,215 222,734 
Total expenses186,940 163,704 569,727 491,859 
OTHER INCOME (EXPENSES)
Interest and other income, net295 976 501 3,686 
Interest expense (Note 4)(19,982)(16,105)(60,728)(59,829)
Gain on sale of depreciable operating property (Note 3)17,329 — 17,329 457,831 
Total other (expenses) income (2,358)(15,129)(42,898)401,688 
NET INCOME86,660 53,493 200,018 603,784 
Net income attributable to noncontrolling interests in consolidated property partnerships and subsidiaries(6,239)(6,005)(18,333)(17,586)
NET INCOME AVAILABLE TO COMMON UNITHOLDERS$80,421 $47,488 $181,685 $586,198 
Net income available to common unitholders per unit – basic (Note 13) $0.68 $0.40 $1.53 $4.98 
Net income available to common unitholders per unit – diluted (Note 13)$0.68 $0.40 $1.53 $4.96 
Weighted average common units outstanding – basic (Note 13)118,023,527 117,607,370 117,933,195 117,568,687 
Weighted average common units outstanding – diluted (Note 13)118,392,985 118,113,254 118,313,723 118,045,008 


























See accompanying notes to consolidated financial statements.
7

KILROY REALTY, L.P.
CONSOLIDATED STATEMENTS OF CAPITAL
(Unaudited; in thousands, except unit and per unit data)
Partners’ CapitalNoncontrolling Interests in Consolidated Property Partnerships
Number of
Common
Units		Common
Units		Total
Capital
BALANCE AS OF DECEMBER 31, 2021117,614,743 $5,493,806 $196,064 $5,689,870 
Net income53,644 5,739 59,383 
Issuance of share-based compensation awards1,942 1,942 
Non-cash amortization of share-based compensation (Note 8)6,598 6,598 
Settlement of restricted stock units459,050 — — 
Repurchase of common units and restricted stock units(207,139)(13,994)(13,994)
Distributions to noncontrolling interests in consolidated property partnerships(14,842)(14,842)
Distributions declared per common unit ($0.52 per unit)
(63,196)(63,196)
BALANCE AS OF MARCH 31, 2022117,866,654 5,478,800 186,961 5,665,761 
Net income47,620 6,355 53,975 
Issuance of share-based compensation awards635 635 
Non-cash amortization of share-based compensation (Note 8)9,665 9,665 
Settlement of restricted stock units273,382 — — 
Repurchase of common units, stock options and restricted stock units(118,492)(8,660)(8,660)
Distributions to noncontrolling interests in consolidated property partnerships