Exhibit 99.2
Contact:	FOR RELEASE:
Richard E. Moran Jr.	August 1, 2001
Executive Vice President
and Chief Financial Officer
(310) 563-5533
or
Tyler H. Rose
Senior Vice President
and Treasurer
(310) 563-5531

KILROY REALTY CORPORATION REPORTS
SECOND QUARTER FINANCIAL RESULTS

     LOS ANGELES, August 1, 2001 – Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its second quarter ended June 30, 2001, with net income of $15.1 million, or $0.55 per share, compared to $12.8 million, or $0.49 per share in the second quarter of 2000. Revenues for the period totaled $58.2 million, up from $45.3 million a year ago.

     For the first six months of 2001, the company reported net income of $21.5 million, or $0.79 per share, down from $22.4 million, or $0.84 per share, in the year-earlier period. Revenues for the six months totaled $108.6 million, up from $89.1 million in 2000.

     Funds from operations (FFO) for the second quarter were $28.2 million, or $0.93 per share, compared to $20.2 million, or $0.67 per share in the second quarter of 2000. For the first six months of 2001, FFO totaled $50.1 million, or $1.64 per share, up from $40.8 million, or $1.33 per share for the first six months of 2000. All per-share amounts in this report are presented on a diluted basis.

     The company’s second quarter results include a non-recurring lease termination fee of $5.4 million (or $0.18 per share) related to a lease default by a tenant at the company’s Westside Media Center project.

     KRC completed and stabilized two new office buildings during the second quarter aggregating 170,870 square feet of space for a total investment of approximately $37.5 million. The two buildings, both located in San Diego County, were 100% leased on completion. The company is currently developing or is committed to develop an additional 975,311 square feet of space in Southern California, with completion dates scheduled through 2002. This committed development pipeline, representing a total estimated investment of approximately $240 million, is currently 50% preleased.

     Some of the information presented in this release is forward-looking in nature within the meaning of the federal securities law. Although the information is based on the company's current best judgment, actual results, including the timing and total investment of the company’s development projects, and the timely leasing or re-leasing of space at current or anticipated rents, could vary from expectations stated here. Numerous factors will affect KRC's actual results, some of which are beyond the company's control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels, capital market conditions and risks detailed from time to time in the company’s SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.

     Kilroy Realty Corporation is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets in the coastal regions of California and Washington. Principal submarkets for KRC's current development program include Calabasas, West Los Angeles, El Segundo and coastal San Diego, where the company’s total development pipeline is over $500 million. At June 30, 2001, the company owned 7.2 million square feet of commercial office space and 5.6 million square feet of industrial space. More information on Kilroy Realty can be found at www.kilroyrealty.com.

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KILROY REALTY CORPORATION
SUMMARY QUARTERLY RESULTS
(unaudited, in thousands, except per share data)

	Three Months Ended June 30, 2001			Three Months Ended June 30, 2000			Six Months Ended June 30, 2001			Six Months Ended June 30, 2000
Revenues	$	58,234		$	45,336		$	108,601		$	89,106
Net income available to common stockholders (1)	$	15,097		$	12,804		$	21,523		$	22,381
Weighted average common shares outstanding - basic		27,160			26,259			26,938			26,744
Weighted average common shares outstanding - diluted		27,380			26,348			27,177			26,788
Net income per share of common stock - basic	$	0.56		$	0.49		$	0.80		$	0.84
Net income per share of common stock - diluted	$	0.55		$	0.49		$	0.79		$	0.84
Funds From Operations	$	28,237		$	20,153		$	50,113		$	40,832
Weighted average common shares/units outstanding - basic (2)		30,260			30,041			30,243			30,586
Weighted average common shares/units outstanding - diluted (2)		30,481			30,131			30,482			30,630
Funds From Operations per common share/unit - basic (2)	$	0.93		$	0.67		$	1.66		$	1.33
Funds From Operations per common share/unit - diluted (2)	$	0.93		$	0.67		$	1.64		$	1.33
Common shares outstanding at end of period								27,266			26,455
Common partnership units outstanding at end of period								3,063			3,748
Total common shares and units outstanding at end of period								30,329			30,203

		June 30, 2001		June 30, 2000
Occupancy rates:
California		94.5	%	97.1	%
Washington		99.8	%	99.7	%
Arizona		100.0	%	100.0	%
Nevada		100.0	%	100.0	%
Weighted average total		94.9	%	97.3	%
Total square feet of stabilized properties owned at end of period:
Office		7,235		6,333
Industrial		5,606		6,238
Total		12,841		12,571
(1)	Net income after minority interests.
(2)	Calculated based on weighted average shares outstanding assuming conversion of all common limited partnership units outstanding.

KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

		June 30, 2001			December 31, 2000
ASSETS
INVESTMENT IN REAL ESTATE:
Land and improvements	$	285,733		$	266,444
Buildings and improvements		1,154,660			1,054,995
Undeveloped land and construction in progress, net		143,564			162,633
Investment in unconsolidated real estate					12,405
Total investment in real estate		1,583,957			1,496,477
Accumulated depreciation and amortization		(224,157	)		(205,332	)
Investment in real estate, net		1,359,800			1,291,145
Cash and cash equivalents		13,898			17,600
Restricted cash		7,222			35,014
Tenant receivables, net		30,095			32,521
Note receivable from related party					33,274
Deferred financing and leasing costs, net		37,455			39,674
Prepaid expenses and other assets		5,371			7,941
TOTAL ASSETS	$	1,453,841		$	1,457,169
LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES:
Secured debt	$	438,947		$	432,688
Unsecured line of credit		185,000			191,000
Unsecured term facility		100,000			100,000
Accounts payable and accrued expenses		38,554			33,911
Accrued distributions		14,558			13,601
Rents received in advance and tenant security deposits		16,302			17,810
Total liabilities		793,361			789,010
MINORITY INTERESTS:
8.075% Series A Cumulative Redeemable
Preferred unitholders		73,716			73,716
9.375% Series C Cumulative Redeemable
Preferred unitholders		34,464			34,464
9.250% Series D Cumulative Redeemable
Preferred unitholders		44,321			44,321
Common unitholders of the Operating Partnership		50,076			62,485
Minority interest in Development LLCs		12,177			11,748
Total minority interests		214,754			226,734
STOCKHOLDERS' EQUITY:
Common stock		273			265
Additional paid-in capital		474,864			460,390
Distributions in excess of earnings		(23,742	)		(19,230	)
Accumulated other comprehensive loss		(5,669	)
Total stockholders' equity		445,726			441,425
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,453,841		$	1,457,169

KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)

		Three Months Ended June 30, 2001		Three Months Ended June 30, 2000			Six Months Ended June 30, 2001			Six Months Ended June 30, 2000
REVENUES:
Rental income	$	46,029		$	39,370		$	90,408		$	77,072
Tenant reimbursements		6,170			4,594			11,690			9,288
Interest income		277			1,016			713			1,302
Other income		5,758			356			5,790			1,444
Total revenues		58,234			45,336			108,601			89,106
EXPENSES:
Property expenses		7,443			6,074			14,338			11,532
Real estate taxes		4,744			3,049			8,379			6,436
General and administrative expenses		3,034			2,555			6,388			5,187
Ground leases		375			399			767			788
Interest expense		10,612			9,948			21,403			17,776
Depreciation and amortization		12,521			9,645			25,954			18,968
Total expenses		38,729			31,670			77,229			60,687
Income from operations		19,505			13,666			31,372			28,419
Net gains on dispositions of operating properties		1,234			4,273			1,539			3,968
Income before minority interests and cumulative effect
of change in accounting principle		20,739			17,939			32,911			32,387
Minority interests:
Distributions on Cumulative Redeemable
Preferred units		(3,375	)		(3,375	)		(6,750	)		(6,750	)
Minority interest in earnings of Operating Partnership		(1,796	)		(1,843	)		(2,641	)		(3,215	)
Minority interest in earnings of Development LLCs		(471	)		83			(605	)		(41	)
Total minority interests		(5,642	)		(5,135	)		(9,996	)		(10,006	)
Net income before cumulative effect of change in
accounting principle		15,097			12,804			22,915			22,381
Cumulative effect of change in accounting principle								(1,392	)
Net income	$	15,097		$	12,804		$	21,523		$	22,381
Weighted average shares outstanding - basic		27,160			26,259			26,938			26,744
Weighted average shares outstanding - diluted		27,380			26,348			27,177			26,788
Income per common share - basic	$	0.56		$	0.49		$	0.80		$	0.84
Income per common share - diluted	$	0.55		$	0.49		$	0.79		$	0.84

KILROY REALTY CORPORATION
FUNDS FROM OPERATIONS
(unaudited, in thousands, except per share data)

		Three Months Ended June 30, 2001		Three Months Ended June 30, 2000			Six Months Ended June 30, 2001			Six Months Ended June 30, 2000
Net income	$	15,097		$	12,804		$	21,523		$	22,381
Adjustments:
Minority interest in earnings of Operating Partnership		1,796			1,843			2,641			3,215
Depreciation and amortization		12,030			9,645			25,000			18,968
Net gains on dispositions of operating properties		(1,234	)		(4,273	)		(1,539	)		(3,968	)
Cumulative effect of change in accounting principle								1,392
Non-cash amortization of restricted stock grants		548			134			1,096			236
Funds From Operations	$	28,237		$	20,153		$	50,113		$	40,832
Weighted average common shares/units outstanding - basic		30,260			30,041			30,243			30,586
Weighted average common shares/units outstanding - diluted		30,481			30,131			30,482			30,630
Funds From Operations per common share/unit - basic	$	0.93		$	0.67		$	1.66		$	1.33
Funds From Operations per common share/unit - diluted	$	0.93		$	0.67		$	1.64		$	1.33

KILROY REALTY CORPORATION
FUNDS AVAILABLE FOR DISTRIBUTION
(unaudited, in thousands, except per share data)

		Three Months Ended June 30, 2001		Three Months Ended June 30, 2000			Six Months Ended June 30, 2001			Six Months Ended June 30, 2000
Funds From Operations	$	28,237		$	20,153		$	50,113		$	40,832
Adjustments:
Amortization of deferred financing costs		399			487			780			693
Tenant improvements, leasing commissions
and recurring capital expenditures		(3,668	)		(1,827	)		(4,679	)		(2,731	)
Net effect of straight-line rents		(873	)		(1,549	)		(2,587	)		(3,057	)
Funds Available for Distribution	$	24,095		$	17,264		$	43,627		$	35,737
Funds Available for Distribution per common share/unit - basic	$	0.80		$	0.57		$	1.44		$	1.17
Funds Available for Distribution per common share/unit - diluted	$	0.79		$	0.57		$	1.43		$	1.17