<SUBMISSION>
<ACCESSION-NUMBER>0000950109-01-502526
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20010801
<ITEMS>9
<FILING-DATE>20010802
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>KILROY REALTY CORP
<CIK>0001025996
<ASSIGNED-SIC>6798
<IRS-NUMBER>954598246
<STATE-OF-INCORPORATION>MD
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-12675
<FILM-NUMBER>1695703
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2250 E IMPERIAL HWY
<STREET2>C/O KILROY INDUSTRIES
<CITY>EL SEGUNDO
<STATE>CA
<ZIP>90245
<PHONE>3105635500
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>C/O KILROY INDUSTRIES
<STREET2>2250 E IMPERIAL HIGHWAY #1200
<CITY>EL SEGUNDO
<STATE>CA
<ZIP>90245
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
 <TITLE>FORM 8-K</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF">

<P ALIGN="center"> <B><FONT SIZE=5>UNITED STATES
<BR>
</FONT></B> <B><FONT SIZE=5>SECURITIES AND EXCHANGE COMMISSION
<BR>
</FONT></B> <B><FONT SIZE=2>Washington, D.C. 20549 </FONT></B></P>
<P ALIGN="center"> <B><FONT SIZE=5>FORM 8-K </FONT></B></P>
<P ALIGN="center"> <B><FONT SIZE=5>CURRENT REPORT
<BR>
</FONT></B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT SIZE=5>Pursuant to Section 13 or 15 (d) of
<BR>
The Securities Exchange Act of 1934</FONT></B><B><FONT SIZE=5> </FONT></B></P>
<P ALIGN="center"> <B><FONT SIZE=4>Date of report (date of earliest event reported): August 1, 2001 </FONT></B></P>
<P ALIGN="center"> <B><FONT SIZE=6>KILROY REALTY CORPORATION </FONT></B></P>
<P ALIGN="center"> <B><FONT SIZE=1>(Exact name of registrant as specified in its charter) </FONT></B></P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD WIDTH="34%"> <DIV ALIGN="center">&nbsp;&nbsp;&nbsp;<B><FONT SIZE=2>Maryland</FONT></B></DIV>
</TD>
<TD WIDTH="33%"> <DIV ALIGN="center"><B><FONT SIZE=2>Commission File Number:</FONT></B></DIV>
</TD>
<TD WIDTH="33%"> <DIV ALIGN="center"><B><FONT SIZE=2>95-4598246</FONT></B></DIV>
</TD>
</TR>
<TR>
<TD WIDTH="34%"> <DIV ALIGN="center"><B><FONT SIZE=2>(State of other jurisdiction</FONT></B></DIV>
</TD>
<TD WIDTH="33%"> <DIV ALIGN="center"><B><FONT SIZE=2>1-12675</FONT></B></DIV>
</TD>
<TD WIDTH="33%"> <DIV ALIGN="center"><B><FONT SIZE=2>(I.R.S. Employer</FONT></B></DIV>
</TD>
</TR>
<TR>
<TD WIDTH="34%"> <DIV ALIGN="center"><B><FONT SIZE=2>of incorporation or organization)</FONT></B></DIV>
</TD>
<TD WIDTH="33%"> <DIV ALIGN="center"></DIV>
</TD>
<TD WIDTH="33%"> <DIV ALIGN="center"><B><FONT SIZE=2>Identification No.)</FONT></B></DIV>
</TD>
</TR>
</TABLE>
<P ALIGN="center"> <B><FONT SIZE=2>2250 East Imperial Highway, Suite 1200, El Segundo, California 90245
<BR>
</FONT></B> <B><FONT SIZE=1>(Address of principal executive offices) </FONT></B></P>
<P ALIGN="center"> <B><FONT SIZE=2>(310) 563-5500
<BR>
</FONT></B><B><FONT SIZE=1>(Registrant&#146;s telephone number, including area code) </FONT></B></P>

<P> <FONT SIZE=2>ITEM 9. REGULATION FD DISCLOSURE </FONT></P>
<P> <FONT SIZE=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 1, 2001 the Company issued a press release announcing its earnings for the quarter ended June 30, 2001 and made publicly available certain supplemental
information. The supplemental information is attached to this current report as Exhibit 99.1, and the press release is attached to this current report as Exhibit 99.2, and each are incorporated by reference to this report. </FONT></P>
<P> <FONT SIZE=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.</FONT></P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD WIDTH="66%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD COLSPAN=2 WIDTH="28%" NOWRAP><FONT SIZE=2>KILROY REALTY CORPORATION</FONT></TD>
</TR>
<TR>
<TD WIDTH="66%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD COLSPAN="2" WIDTH="28%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="66%"><FONT SIZE=2>Date: August 1, 2001</FONT></TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="28%" COLSPAN="2">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="66%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD COLSPAN="2" WIDTH="28%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="66%">&nbsp;</TD>
<TD WIDTH="6%" VALIGN="BOTTOM"><FONT SIZE=2>By:</FONT></TD>
<TD ALIGN="center" WIDTH="28%" COLSPAN="2" VALIGN="BOTTOM"> <DIV ALIGN="left"><FONT SIZE=2>/s/</FONT><FONT SIZE=2>&nbsp;A</FONT><FONT SIZE=1>NN </FONT><FONT SIZE=2>M</FONT><FONT SIZE=1>ARIE </FONT><FONT SIZE=2>W</FONT><FONT SIZE=1>HITNEY</FONT></DIV>
</TD>
</TR>
<TR>
<TD WIDTH="66%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD COLSPAN="2" WIDTH="28%"> <HR NOSHADE SIZE=1 WIDTH="70%" ALIGN="LEFT"> </TD>
</TR>
<TR>
<TD WIDTH="66%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="28%" COLSPAN="2" VALIGN="TOP"><B><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ann Marie Whitney
<BR>
<I><FONT SIZE=1>Senior Vice-President and Controller</FONT></I></FONT></B></TD>
</TR>
<TR>
<TD WIDTH="66%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD COLSPAN=2 WIDTH="28%"><I></I></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="15%"><B></B></TD>
<TD WIDTH="71%"><B><FONT SIZE=2>EXHIBIT INDEX</FONT></B></TD>
</TR>
<TR>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2">&nbsp;</TD>
</TR>
<TR>
<TD ALIGN="center" WIDTH="12%"><B><FONT SIZE=1><U>Exhibit</U></FONT></B></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2">&nbsp;</TD>
</TR>
<TR>
<TD ALIGN="center" WIDTH="12%"><B><FONT SIZE=1><U>Number</U></FONT></B></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" COLSPAN="2"> <DIV ALIGN="left"><B><FONT SIZE=1><U>Description</U></FONT></B></DIV>
</TD>
</TR>
<TR>
<TD ALIGN="right" WIDTH="12%"> <DIV ALIGN="center"><FONT SIZE=2>99.1 *</FONT></DIV>
</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Second Quarter 2001 Supplemental Financial Report for the Quarter Ended June 30, 2001.</FONT></TD>
</TR>
<TR>
<TD ALIGN="right" WIDTH="12%"> <DIV ALIGN="center"><FONT SIZE=2>99.2 *</FONT></DIV>
</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2><FONT SIZE=2>Press Release dated August 1, 2001.</FONT></TD>
</TR>
</TABLE>
<P> <FONT SIZE=2>*</FONT><FONT SIZE=2>Filed herewith. </FONT></P>
 </BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>dex991.htm
<DESCRIPTION>SECOND QTR SUPPLEMENTAL FINANCIAL REPORT
<TEXT>
<HTML>
<HEAD>
 <TITLE>SECOND QTR SUPPLEMENTAL FINANCIAL REPORT</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF">

<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B> </B></FONT></P>
<P ALIGN="RIGHT">Exhibit 99.1</P>
<P ALIGN="center"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="3"><B>KILROY
<BR>
REALTY </B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="20%" SIZE="1"> <DIV ALIGN="center"><B><FONT SIZE="2" FACE="Times New Roman, Times, serif"> CORPORATION</FONT> </B> </DIV>
<UL> <UL> <UL> <UL> </UL>
</UL>
</UL>
</UL>
<P ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>Second Quarter 2001 Supplemental Financial Report</B></FONT></P>
<P>
<TABLE WIDTH="690" CELLPADDING="0" CELLSPACING="0" ALIGN="center">
<TR>
<TD VALIGN="TOP" WIDTH=430><FONT SIZE="2" FACE="Times New Roman, Times, serif">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif" SIZE="2">Page</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex991">Financial Highlights</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">1</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex992">Consolidated Balance Sheets</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">2</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex993">Consolidated Statements of Operations</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">3</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex994">Funds From Operations and Funds Available for Distribution</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">4</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex995">Financial Results Excluding Effect of Second Quarter Lease Termination Fee</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">5</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex996">Net Operating Income Breakdown</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">6</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex997">Same Store Analysis</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">7</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430 HEIGHT="21">
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex998">Stabilized Portfolio and Occupancy Overview</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9 HEIGHT="21">&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53 HEIGHT="21">
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">8</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex999">Leasing Activity</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">9</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex910">Lease Expiration Schedule</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">10</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex911">Dispositions</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">11</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex912">Stabilized Development</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">12</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex913">In-Process and Committed Development Projects</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">13</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex914">Future Development Pipeline</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">14</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex915">Capital Structure</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">15</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=430>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">
<A HREF="#884dex916">Debt Analysis</A>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=9>&nbsp;</TD>
<TD VALIGN="TOP" WIDTH=53>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, serif" SIZE="2">16</FONT></P>
</TD>
</TR>
</TABLE>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><I>Some of the enclosed information presented is forward-looking in nature, including information concerning development timing and investment amounts. Although the information is based on
Kilroy Realty Corporation's current expectations, actual results could vary from expectations stated here. Numerous factors will affect Kilroy Realty Corporation's actual results, some of which are beyond its 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 and capital market conditions. You are cautioned not to place undue reliance on this
information, which speaks only as of the date of this report. Kilroy Realty Corporation assumes no obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise. For a discussion of
important risks related to Kilroy Realty Corporation's business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking
information, see the discussion under the caption &quot;Business Risks&quot; in Kilroy Realty Corporation's annual report on Form 10-K for the year ended December 31, 2000. In light of these risks, uncertainties and assumptions, the forward-looking
events contained in this supplement information might not occur.</I></FONT></P>
<DIV ALIGN="center"><FONT SIZE="2">&nbsp;</FONT><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> </DIV>
<HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center"> <B><FONT SIZE="2">
<A NAME="884dex991"></A>
Financial Highlights
<BR>
<I>(unaudited, $ in thousands, except per share amounts)</I></FONT></B>
<P> </DIV>
<B></B>
<TABLE ALIGN="center" WIDTH="728" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Three Months Ended June 30,</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Six Months Ended June 30,</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center">&nbsp;</TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2001</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% Change</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2001</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% Change</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">I<B>NCOME ITEMS:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;58,234</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;45,336</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">28.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;108,601</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;89,106</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Operating Income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">45,395</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">34,798</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30.5</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">84,404</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">69,048</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15,097</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,804</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21,523</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22,381</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds From Operations</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">28,237</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">20,153</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">40.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">50,113</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">40,832</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds Available for Distribution</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">24,095</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17,264</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">39.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">43,627</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">35,737</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds From Operations per share&#151;diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.93</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.67</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">38.5</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.64</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.33</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">23.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds Available for Distribution per share&#151;diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.79</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.57</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">38.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.43</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.17</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.48</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.45</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.96</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.90</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>RATIOS:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest Coverage Ratio<SUP>(1)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.0x</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.4x</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.7x</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.7x</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed Charge Coverage Ratio<SUP>(2)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.0x</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.5x</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.8x</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.7x</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FFO Payout Ratio<SUP>(3)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">51.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">67.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(15.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">58.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">66.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(8.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAD Payout Ratio<SUP>(4)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">60.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">78.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(18.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">66.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">75.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(9.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="727" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="377"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30, 2001</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Dec. 31, 2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% Change</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="377"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ASSETS:</B></FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="114"></TD>
<TD WIDTH="20"></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="101"></TD>
<TD WIDTH="4"></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="48"></TD>
<TD WIDTH="47"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="377"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in Real Estate before Depreciation</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="114"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;1,583,957</FONT></TD>
<TD WIDTH="20">&nbsp;</TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="101"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;1,496,477</FONT></TD>
<TD WIDTH="4"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="47"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="377"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="114"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,453,841</FONT></TD>
<TD WIDTH="20">&nbsp;</TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="101"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,457,169</FONT></TD>
<TD WIDTH="4"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(0.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="47"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="377">&nbsp;</TD>
<TD WIDTH="10">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="114"></TD>
<TD WIDTH="20">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH="10">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="101"></TD>
<TD WIDTH="4"></TD>
<TD WIDTH="10">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="48"></TD>
<TD WIDTH="47"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="377"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CAPITALIZATION:</B></FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="114"></TD>
<TD WIDTH="20"></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="101"></TD>
<TD WIDTH="4"></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="48"></TD>
<TD WIDTH="47"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="377"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Debt</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="114"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;723,947</FONT></TD>
<TD WIDTH="20">&nbsp;</TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="101"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;723,688</FONT></TD>
<TD WIDTH="4"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="47"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="377"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Preferred Stock<SUP>(5)</SUP>
</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="114"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">155,000</FONT></TD>
<TD WIDTH="20">&nbsp;</TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="101"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">155,000</FONT></TD>
<TD WIDTH="4"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT FACE="Times New Roman, Times, serif" SIZE="2">0.0</FONT></TD>
<TD WIDTH="47" VALIGN="bottom"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="377"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Market Equity Value<SUP>(5)</SUP>
</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="114"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">882,558</FONT></TD>
<TD WIDTH="20">&nbsp;</TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="101"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">848,162</FONT></TD>
<TD WIDTH="4"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="47"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="377"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Market Capitalization<SUP>(5)</SUP>
</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="114"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,761,505</FONT></TD>
<TD WIDTH="20">&nbsp;</TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="101"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,726,850</FONT></TD>
<TD WIDTH="4"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="47"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="377"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Debt / Total Market Capitalization</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">41.1%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="20">&nbsp;</TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">41.9%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="4">&nbsp;</TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(0.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="47"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
</TABLE>
<P><DIV>
<TABLE WIDTH="100%" CELLSPACING="0" CELLPADDING="0">
<TR>
<TD WIDTH="33" HEIGHT="21" VALIGN="top"><I><FONT SIZE="2">(1)</FONT></I></TD>
<TD WIDTH="16" HEIGHT="21"><I></I></TD>
<TD WIDTH="903" HEIGHT="21"><I><FONT SIZE="2">Calculated as income from operations before interest expense and depreciation and amortization divided by interest expense plus loan cost amortization.</FONT></I></TD>
</TR>
<TR>
<TD WIDTH="33" VALIGN="top"><I><FONT SIZE="2">(2)</FONT></I></TD>
<TD WIDTH="16"><I></I></TD>
<TD WIDTH="903"><I><FONT SIZE="2">Calculated as income from operations before interest expense and depreciation and amortization divided by interest expense plus loan cost amortization and current year paid and accrued preferred
dividends.</FONT></I></TD>
</TR>
<TR>
<TD WIDTH="33" VALIGN="top"><I><FONT SIZE="2">(3)</FONT></I></TD>
<TD WIDTH="16"><I></I></TD>
<TD WIDTH="903"><I><FONT SIZE="2">Calculated as current year dividends paid and accrued to common shareholders divided by Funds From Operations.</FONT></I></TD>
</TR>
<TR>
<TD WIDTH="33" VALIGN="top"><I><FONT SIZE="2">(4)</FONT></I></TD>
<TD WIDTH="16"><I></I></TD>
<TD WIDTH="903"><I><FONT SIZE="2">Calculated as current year dividends paid and accrued to common shareholders divided by Funds Available for Distribution.</FONT></I></TD>
</TR>
<TR>
<TD WIDTH="33" VALIGN="top"><I><FONT SIZE="2">(5)</FONT></I></TD>
<TD WIDTH="16"><I></I></TD>
<TD WIDTH="903"><I><FONT SIZE="2">See "Capital Structure" on page 15. &nbsp;</FONT></I></TD>
</TR>
</TABLE>
<P> </P>
</DIV>
<P>&nbsp;</P>
<DIV ALIGN="center"> <FONT FACE="Times New Roman, Times, serif">
<BR>
</FONT>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center">
<A NAME="884dex992"></A>
</DIV>
<B><FONT SIZE="2" FACE="Times New Roman, Times, serif"> Consolidated Balance Sheets
<BR>
<I>(Unaudited, $ in thousands)</I></FONT></B>
<BR>
</DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="727" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>December 31,
<BR>
2000</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ASSETS:</B></FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="105"></TD>
<TD WIDTH="9"></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="106"></TD>
<TD WIDTH="10"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land and improvements</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;285,733</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;266,444</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings and improvements</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;1,154,660</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;1,054,995</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undeveloped land and construction in progress, net</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">143,564</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">162,633</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in unconsolidated real estate </FONT></TD>
<TD WIDTH="21">&nbsp;</TD>
<TD WIDTH="105">&nbsp;</TD>
<TD WIDTH="9">&nbsp;</TD>
<TD WIDTH="10">&nbsp;</TD>
<TD WIDTH="106"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,405</FONT></DIV>
</TD>
<TD WIDTH="10">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
investment in real estate</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,583,957</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,496,477</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(224,157</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(205,332</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in
real estate, net</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,359,800</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,291,145</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464">&nbsp;</TD>
<TD WIDTH="21">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105">&nbsp;</TD>
<TD WIDTH="9">&nbsp;</TD>
<TD WIDTH="10">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106">&nbsp;</TD>
<TD WIDTH="10">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13,898</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17,600</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,222</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">35,014</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant receivables, net</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30,095</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">32,521</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="MIDDLE">
<TD NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note receivable from related party</FONT></TD>
<TD WIDTH="21">&nbsp;</TD>
<TD NOWRAP ALIGN="right" WIDTH="105">&nbsp;</TD>
<TD WIDTH="9">&nbsp;</TD>
<TD WIDTH="10">&nbsp;</TD>
<TD NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> 33,274</FONT></TD>
<TD WIDTH="10">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred financing and leasing costs, net</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">37,455</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">39,674</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,371</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,941</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL ASSETS</B></FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;1,453,841</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,457,169</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY:</B></FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="105"></TD>
<TD WIDTH="9"></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="106"></TD>
<TD WIDTH="10"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I><B>Liabilities:</B></I></FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="105"></TD>
<TD WIDTH="9"></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="106"></TD>
<TD WIDTH="10"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured debt</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;438,947</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;432,688</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured line of credit</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">185,000</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">191,000</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured term facility</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100,000</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100,000</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">38,554</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">33,911</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued distributions</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14,558</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13,601</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rents received in advance and tenant security deposits</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">16,302</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17,810</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
liabilities</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">793,361</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">789,010</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" HEIGHT="14" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I><B>Minority Interests:</B></I></FONT></TD>
<TD HEIGHT="14" WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" HEIGHT="14" WIDTH="105"></TD>
<TD HEIGHT="14" WIDTH="9"></TD>
<TD HEIGHT="14" WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" HEIGHT="14" WIDTH="106"></TD>
<TD HEIGHT="14" WIDTH="10"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.075% Series A Cumulative Redeemable Preferred unitholders</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">73,716</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">73,716</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.375% Series C Cumulative Redeemable Preferred unitholders</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">34,464</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">34,464</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.250% Series D Cumulative Redeemable Preferred unitholders</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">44,321</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">44,321</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common unitholders of the Operating Partnership</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">50,076</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">62,485</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority interest in Development LLCs</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,177</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,748</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total minority
interests</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">214,754</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">226,734</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B><I>Stockholders&#146; Equity:</I></B></FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="105"></TD>
<TD WIDTH="9"></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="106"></TD>
<TD WIDTH="10"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">273</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">265</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">474,864</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">460,390</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions in excess of earnings</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(23,742</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(19,230</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(5,669</FONT></TD>
<TD ALIGN="left" WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="106"></TD>
<TD WIDTH="10"></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
stockholders&#146; equity</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">445,726</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">441,425</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="464"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES &amp; STOCKHOLDERS&#146; EQUITY</B></FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="105"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,453,841</FONT></TD>
<TD WIDTH="9"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="106"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;1,457,169</FONT></TD>
<TD WIDTH="10"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="464"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="21"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="105"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="9"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="106"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="10"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>

<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center"><B><FONT SIZE="2" FACE="Times New Roman, Times, serif">
<A NAME="884dex993"></A>
Consolidated Statements of Operations
<BR>
<I>(Unaudited, $ in thousands, except per share amounts)</I></FONT> </B></DIV>

<BR>

<BR>

<TABLE ALIGN="center" WIDTH="729" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Three Months Ended June 30,</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Six Months Ended June 30,</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2001</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2000</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% Change</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2001</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2000</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% Change</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>REVENUES:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Rental income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;46,029</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;39,370</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">16.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$90,408</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$77,072</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Tenant reimbursements</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,170</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,594</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">34.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,690</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,288</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">25.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Interest income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">277</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,016</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(72.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">713</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,302</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(45.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Other income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,758</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">356</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1517.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,790</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,444</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">301.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">58,234</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">45,336</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">28.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">108,601</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">89,106</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>EXPENSES:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Property expenses</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,443</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,074</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.5</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14,338</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,532</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">24.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Real estate taxes</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,744</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,049</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">55.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8,379</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,436</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,034</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,555</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,388</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,187</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">23.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Ground leases</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">375</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">399</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(6.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">767</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">788</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10,612</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,948</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21,403</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17,776</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">20.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,521</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,645</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">29.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">25,954</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18,968</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">36.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">38,729</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">31,670</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">77,229</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">60,687</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">27.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>INCOME FROM OPERATIONS</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">19,505</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13,666</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">42.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">31,372</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">28,419</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Net gains on dispositions of operating properties</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,234</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,273</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(71.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,539</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,968</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(61.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>INCOME BEFORE MINORITY INTERESTS
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AND CUMULATIVE EFFECT OF CHANGE
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN ACCOUNTING PRINCIPLE</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">20,739</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17,939</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">32,911</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">32,387</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>MINORITY INTERESTS:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Distributions on Cumulative Redeemable Preferred
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;units</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3,375</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3,375</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(6,750</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(6,750</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Minority interest in earnings of Operating Partnership</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,796</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,843</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2,641</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3,215</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(17.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Minority interest in earnings of Development LLCs</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(471</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">83</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(667.5</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(605</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(41</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1375.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total minority
interests</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(5,642</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(5,135</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(9,996</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(10,006</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(0.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NET INCOME BEFORE CUMULATIVE EFFECT
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OF CHANGE IN ACCOUNTING PRINCIPLE</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15,097</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,804</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22,915</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22,381</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CUMULATIVE EFFECT OF CHANGE IN
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACCOUNTING PRINCIPLE</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,392</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NET INCOME</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;15,097</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;12,804</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$21,523</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$22,381</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding&#151;basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">27,160</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">26,259</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">26,938</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">26,744</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding&#151;diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">27,380</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">26,348</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">27,177</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">26,788</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NET INCOME PER COMMON SHARE:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Income per common share&#151;basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.56</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.49</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.80</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.84</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(4.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Income per common share&#151;diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.55</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.49</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.79</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.84</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(6.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>

<P ALIGN="center"><B><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3">Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</FONT></FONT> </B> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center">
<A NAME="884dex994"></A>
</DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" FACE="Times New Roman, Times, serif"> Funds From Operations and Funds Available for Distribution
<BR>
<I>(Unaudited, $ in thousands, except per share amounts)</I></FONT> </B></DIV>

<P>&nbsp;</P>
<TABLE ALIGN="center" WIDTH="728" CELLSPACING=0 CELLPADDING=0 BORDER="0">
<TR VALIGN="bottom">
<TH ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Three Months Ended June 30,</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Six Months Ended June 30,</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR VALIGN="bottom">
<TH ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2001</B></FONT><FONT SIZE="2"> </FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2000</B></FONT><FONT SIZE="2"> </FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% Change</B></FONT><FONT SIZE="2"> </FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2001</B></FONT><FONT SIZE="2"> </FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2000</B></FONT><FONT SIZE="2"> </FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% Change</B></FONT><FONT SIZE="2"> </FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>FUNDS FROM OPERATIONS:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$15,097</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$12,804</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$21,523</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$22,381</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments:</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority interest in
earnings of Operating Partnership</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,796</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,843</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,641</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,215</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(17.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and
amortization</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,030</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,645</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">24.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">25,000</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18,968</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">31.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains on dispositions
of operating properties</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,234</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(4,273</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(71.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,539</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3,968</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(61.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of
change in accounting principle</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,392</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash amortization of
restricted stock grants</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">548</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">134</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">309.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,096</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">236</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">364.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds From Operations</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$28,237</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$20,153</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">40.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$50,113</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$40,832</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average common shares/units outstanding-basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30,260</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30,041</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30,243</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30,586</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average common shares/units outstanding-diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30,481</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30,131</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30,482</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30,630</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds From Operations per common share/unit-basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.93</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.67</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">39.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;1.66</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;1.33</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">24.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds From Operations per common share/unit-diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.93</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.67</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">38.5</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;1.64</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;1.33</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">23.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>FUNDS AVAILABLE FOR DISTRIBUTION:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds From Operations</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$28,237</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$20,153</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">40.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$50,113</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$40,832</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments:</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred
financing costs</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">399</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">487</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(18.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">780</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">693</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant improvements,
leasing commissions and recurring
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;capital expenditures</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3,668</FONT></TD>
<TD VALIGN="bottom"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,827</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(4,679</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2,731</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">71.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net effect of
straight-line rents</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(873</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,549</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(43.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2,587</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3,057</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(15.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds Available for Distribution</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$24,095</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$17,264</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">39.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$43,627</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$35,737</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds Available for Distribution per common share/unit-basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.80</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.57</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">38.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;1.44</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;1.17</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">23.5</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds Available for Distribution per common share/unit-diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.79</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.57</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">38.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;1.43</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;1.17</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="3">&nbsp;</FONT></DIV>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="bottom">
<TD COLSPAN=17 ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>Kilroy Realty Corporation</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN=17 ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>Second Quarter 2001 Supplemental Financial Report</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN=17 ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>
<A NAME="884dex995"></A>
Financial Results Excluding Impact of Second Quarter Lease Termination Fee</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN=17 ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B><I>(unaudited, $ in thousands, except per share amounts)</I></B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"><FONT FACE="Times New Roman">&nbsp;</FONT><FONT FACE="Times New Roman">&nbsp;</FONT><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"><FONT FACE="Times New Roman">&nbsp;</FONT><FONT FACE="Times New Roman">&nbsp;</FONT><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD COLSPAN=5 ALIGN="center" NOWRAP><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>Three Months Ended June 30,</B></FONT></TD>
<TD ALIGN="center" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>&nbsp;</B></FONT></TD>
<TD COLSPAN=5 ALIGN="center" NOWRAP><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>Six Months Ended June 30,</B></FONT></TD>
<TD ALIGN="center" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>&nbsp;</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="center" COLSPAN="5"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD ALIGN="center" WIDTH="2%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="center" COLSPAN="5"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="center" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>2001</B></FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="center" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>2000</B></FONT></TD>
<TD ALIGN="center" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>&nbsp;</B></FONT></TD>
<TD ALIGN="center" NOWRAP WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>% Change</B></FONT></TD>
<TD ALIGN="center" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>&nbsp;</B></FONT></TD>
<TD ALIGN="center" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>2001</B></FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="center" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>2000</B></FONT></TD>
<TD ALIGN="center" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>&nbsp;</B></FONT></TD>
<TD ALIGN="center" NOWRAP WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>% Change</B></FONT></TD>
<TD ALIGN="center" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>&nbsp;</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="right" WIDTH="7%"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="right" WIDTH="10%"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="right" WIDTH="9%"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD ALIGN="right" WIDTH="2%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="right" WIDTH="6%"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="right" WIDTH="9%"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD ALIGN="right" WIDTH="0%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ALIGN="right" WIDTH="7%"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>&nbsp;FUNDS FROM OPERATIONS:&nbsp;</B></FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>&nbsp;</B></FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>&nbsp;</B></FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3" NOWRAP HEIGHT="23"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;Funds From Operations as reported</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$28,237 </FONT></TD>
<TD ALIGN="right" WIDTH="1%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD ALIGN="right" WIDTH="10%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$20,153 </FONT></TD>
<TD ALIGN="right" WIDTH="1%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD ALIGN="right" WIDTH="9%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2">40.1% </FONT></TD>
<TD ALIGN="right" WIDTH="2%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$50,113 </FONT></TD>
<TD ALIGN="right" WIDTH="1%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD ALIGN="right" WIDTH="9%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$40,832 </FONT></TD>
<TD ALIGN="right" WIDTH="0%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD ALIGN="right" WIDTH="7%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2">22.7% </FONT></TD>
<TD ALIGN="right" WIDTH="1%" HEIGHT="23"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp; Lease termination fee <SUP>(1)</SUP>
</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">(5,352</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">)&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">(5,352</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">)&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="7%"> <HR NOSHADE SIZE="1" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="10%"> <HR NOSHADE SIZE="1" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="6%"> <HR NOSHADE SIZE="1" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="9%"> <HR NOSHADE SIZE="1" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;Funds From Operations excluding impact of lease termination fee</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$22,885<U> </U></FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$20,153<U> </U></FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">13.6% </FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$44,761 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$40,832<U> </U></FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">9.6% </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="7%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="10%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="6%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="9%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;Weighted average common shares/units outstanding - diluted</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">30,481 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">30,131 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">30,482 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">30,630 </FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;Adjusted Funds From Operations per common share/unit - diluted</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$0.75 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$0.67 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">14.9% </FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$1.47 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$1.33 </FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">12.0% </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="7%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="10%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="6%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="9%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;<B>FUNDS AVAILABLE FOR DISTRIBUTION:<I>&nbsp;</I></B></FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B><I>&nbsp;</I></B></FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B><I>&nbsp;</I></B></FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;<B>&nbsp;</B>Funds Available for Distribution as reported</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$24,095 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$17,264 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">39.6% </FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$43,627 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$35,737 </FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">22.1% </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp; Lease termination fee <SUP>(1)</SUP>
</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">(5,352</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">)&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">(5,352</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">)&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="7%"> <HR NOSHADE SIZE="1" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="10%"> <HR NOSHADE SIZE="1" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="6%"> <HR NOSHADE SIZE="1" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="9%"> <HR NOSHADE SIZE="1" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;Funds Available for Distribution excluding impact of lease termination fee</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$18,743 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$17,264 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">8.6% </FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$38,275 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$35,737 </FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">7.1% </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="7%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="10%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="6%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="9%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;Adjusted Funds Available for Distribution per common share/unit - diluted</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$0.61<U> </U></FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$0.57 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">7.0% </FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$1.26 </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$1.17 </FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">6.8% </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="7%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="10%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="6%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="9%"> <HR NOSHADE SIZE="2" WIDTH="80%" ALIGN="right"> </TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;<B>RATIOS:</B>&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;Interest Coverage Ratio</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">3.5x </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">3.4x </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">3.4x </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">3.7x </FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;Fixed Charge Coverage Ratio</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">2.6x </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">2.5x </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">2.6x </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">2.7x </FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;FFO Payout Ratio</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">63.6x</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">67.4%</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">(3.8%</FONT></TD>
<TD ALIGN="right" WIDTH="2%"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">)&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">65.0%</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">66.4%</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">(1.4%</FONT></TD>
<TD ALIGN="right" WIDTH="1%"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">)&nbsp;</FONT></DIV>
</TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;FAD Payout Ratio</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">77.7x</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">78.7%</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">(1.0%</FONT></TD>
<TD ALIGN="right" WIDTH="2%"> <DIV ALIGN="left"><FONT FACE="Times New Roman, Times, serif" SIZE="2">)&nbsp;</FONT></DIV>
</TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">76.0%</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">75.8%</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">0.2% </FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" COLSPAN="3"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="10%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="2%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="0%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left" COLSPAN="17"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><I>(1) The lease termination fee of $5.4 million represents the $15.0 million in letters of credit proceeds offset by $9.6 million of accounts receivable and other
costs and obligations associated with the lease.</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>

<P ALIGN="left"></P>
<P ALIGN="center"><FONT SIZE="3"><B><FONT FACE="Times New Roman, Times, serif"></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B></B></FONT><FONT FACE="Times New Roman, Times, serif">Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</FONT></B></FONT> <HR NOSHADE WIDTH="100%" SIZE="1" ALIGN="center"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>
<A NAME="884dex996"></A>
Net Operating Income Breakdown</B></FONT></DIV>
<P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="685">
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT> <TH ALIGN="RIGHT" NOWRAP>&nbsp; <TH ALIGN="RIGHT" NOWRAP COLSPAN="2"><DIV ALIGN="CENTER"><FONT SIZE="2" FACE="Times New Roman, Times, serif">As of June 30, 2001<SUP>(1)</SUP>
</FONT></DIV>
</TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT> <TD WIDTH="60" ALIGN="RIGHT"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT> <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TR>
<TR>
<TD WIDTH="440"> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>% OF TOTAL NOI BY PRODUCT TYPE:</B></FONT> <TD WIDTH="60" ALIGN="RIGHT"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT> <TD WIDTH="96" ALIGN="RIGHT">&nbsp;<TD
WIDTH="87" ALIGN="LEFT">&nbsp; </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B><I>Office:</I></B></FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp; <TD WIDTH="96" ALIGN="RIGHT">&nbsp;<TD WIDTH="87" ALIGN="LEFT">&nbsp; </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;Los Angeles</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"
FACE="Times New Roman, Times, serif">42.7</FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2" FACE="Times New Roman, Times, serif">%</FONT> </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;Orange County</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"
FACE="Times New Roman, Times, serif">3.6</FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2" FACE="Times New Roman, Times, serif">%</FONT> </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;San Diego</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">25.7</FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2" FACE="Times New Roman, Times, serif">%</FONT> </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;Other</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">5.2</FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2" FACE="Times New Roman, Times, serif">%</FONT> </TR>
<TR>
<TD WIDTH="440">&nbsp; <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <HR NOSHADE ALIGN="right" WIDTH="50%" SIZE="1"> <TD WIDTH="87" ALIGN="LEFT">&nbsp; </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"
FACE="Times New Roman, Times, serif">77.2</FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2" FACE="Times New Roman, Times, serif">%</FONT> </TR>
<TR>
<TD WIDTH="440">&nbsp; <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <HR NOSHADE ALIGN="right" WIDTH="50%" SIZE="1"> <TD WIDTH="87" ALIGN="LEFT">&nbsp; </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B><I>Industrial:</I></B></FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"><FONT SIZE="2"><FONT
FACE="Times New Roman, Times, serif"></FONT></FONT></FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT">&nbsp; </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;Los Angeles</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"
FACE="Times New Roman, Times, serif">2.9</FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2" FACE="Times New Roman, Times, serif">%</FONT> </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;Orange County</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"
FACE="Times New Roman, Times, serif">17.4</FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2" FACE="Times New Roman, Times, serif">%</FONT> </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;Other</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">2.5</FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2" FACE="Times New Roman, Times, serif">%</FONT> </TR>
<TR>
<TD WIDTH="440">&nbsp; <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <HR NOSHADE ALIGN="right" WIDTH="50%" SIZE="1"> <TD WIDTH="87" ALIGN="LEFT">&nbsp; </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"
FACE="Times New Roman, Times, serif">22.8</FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2" FACE="Times New Roman, Times, serif">%</FONT> </TR>
<TR>
<TD WIDTH="440">&nbsp; <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <HR NOSHADE ALIGN="right" WIDTH="50%" SIZE="1"> <TD WIDTH="87" ALIGN="LEFT">&nbsp; </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>% OF TOTAL NOI BY REGION:</B></FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"><FONT SIZE="2"><FONT
FACE="Times New Roman, Times, serif"></FONT></FONT></FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT">&nbsp; </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;Los Angeles </FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"><FONT SIZE="2"><FONT
FACE="Times New Roman, Times, serif">45.6</FONT></FONT></FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2"><FONT SIZE="2"><FONT FACE="Times New Roman, Times, serif">%</FONT></FONT></FONT> </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;Orange County</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"><FONT SIZE="2"><FONT
FACE="Times New Roman, Times, serif">21.0</FONT></FONT></FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2"><FONT SIZE="2"><FONT FACE="Times New Roman, Times, serif">%</FONT></FONT></FONT> </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;San Diego</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"><FONT SIZE="2"><FONT
FACE="Times New Roman, Times, serif">25.7</FONT></FONT></FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2"><FONT SIZE="2"><FONT FACE="Times New Roman, Times, serif">%</FONT></FONT></FONT> </TR>
<TR>
<TD WIDTH="440"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;Other</FONT> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"><FONT SIZE="2"><FONT
FACE="Times New Roman, Times, serif">7.7</FONT></FONT></FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2"><FONT SIZE="2"><FONT FACE="Times New Roman, Times, serif">%</FONT></FONT></FONT> </TR>
<TR>
<TD WIDTH="440">&nbsp; <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <HR NOSHADE ALIGN="right" WIDTH="50%" SIZE="1"> <TD WIDTH="87" ALIGN="LEFT">&nbsp; </TR>
<TR>
<TD WIDTH="440">&nbsp;&nbsp;&nbsp;&nbsp;Total <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <DIV ALIGN="right"><FONT SIZE="2"><FONT SIZE="2"><FONT FACE="Times New Roman, Times, serif">100.0</FONT></FONT></FONT></DIV>
<TD WIDTH="87" ALIGN="LEFT"><FONT SIZE="2"><FONT SIZE="2"><FONT FACE="Times New Roman, Times, serif">%</FONT></FONT></FONT> </TR>
<TR>
<TD WIDTH="440"> <TD WIDTH="60" ALIGN="RIGHT">&nbsp;<TD WIDTH="96" ALIGN="RIGHT"> <HR NOSHADE ALIGN="right" WIDTH="50%" SIZE="2"> <TD WIDTH="87" ALIGN="LEFT">&nbsp; </TR>
</TABLE>
<P><I><FONT SIZE="2" FACE="Times New Roman, Times, serif">(1) Based on Net Operating Income for the six months ended June 30, 2001.</FONT></I></P>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<P ALIGN="center"><B><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3">Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</FONT></FONT> </B> <DIV ALIGN="center"><B><FONT SIZE="2" FACE="Times New Roman, Times, serif"> </FONT></B> <HR NOSHADE WIDTH="100%" SIZE="1"> <B><FONT SIZE="2" FACE="Times New Roman, Times, serif">
<A NAME="884dex997"></A>
Same Store Analysis <SUP>(3)</SUP>
<BR>
<I>($ in thousands)</I></FONT> </B></DIV>

<P>&nbsp;</P>
<TABLE ALIGN="center" WIDTH="728" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=9 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Three Months Ended June 30,</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=9 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Six Months Ended June 30,</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2001</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>$&nbsp;Change</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% Change</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2001</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>$&nbsp;Change</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% Change</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TOTAL&nbsp;SAME&nbsp;STORE&nbsp;PORTFOLIO</B></FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="43"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="43"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="53"></TD>
<TD WIDTH="6"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="52"></TD>
<TD WIDTH="23"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="43"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="43"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="53"></TD>
<TD WIDTH="6"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="59"></TD>
<TD WIDTH="27"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B><I>Operating Revenues:</I></B></FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="43"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="43"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="53"></TD>
<TD WIDTH="6"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="52"></TD>
<TD WIDTH="23"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="43"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="43"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="53"></TD>
<TD WIDTH="6"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="59"></TD>
<TD WIDTH="27"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Rental income</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$35,773</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$34,908</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;865</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="52"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.5</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="23"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$71,615</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$69,345</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$2,270</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="27"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Tenant reimbursements<SUP>(1)</SUP>
</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,308</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,104</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,204</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="52"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">29.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="23"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,842</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8,365</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,477</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="27"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Other income<SUP>(2)</SUP>
</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">363</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">362</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="52"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="23"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">417</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,436</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,019</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(71.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="27"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD WIDTH="218"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="53"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="6"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="52">&nbsp;</TD>
<TD WIDTH="23"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="53"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="6"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1"> </FONT></TD>
<TD WIDTH="27"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;Total operating revenues</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$41,444</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$39,374</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$2,070</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="52"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="23"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$81,874</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$79,146</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$2,728</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="27"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="218"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="53"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="6"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="52">&nbsp;</TD>
<TD WIDTH="23"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="53"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="6"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1"> </FONT></TD>
<TD WIDTH="27"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B><I>Operating Expenses:</I></B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Property expenses<SUP>(2)</SUP>
</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;5,838</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;5,542</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;296</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="52"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="23"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$11,046</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$10,491</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;555</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="27"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real estate taxes<SUP>(1)</SUP>
</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,565</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,644</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">921</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="52"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">34.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="23"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,571</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,672</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">899</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="27"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Ground leases</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">325</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">389</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(64</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="52"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(16.5</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="23"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">657</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">770</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(113</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(14.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="27"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%)</FONT></TD>
</TR>
<TR>
<TD WIDTH="218"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="53"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="6"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="52">&nbsp;</TD>
<TD WIDTH="23"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="53"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="6"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1"> </FONT></TD>
<TD WIDTH="27"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;Total operating expenses</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;9,728</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;8,575</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,153</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="52"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="23"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$18,274</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$16,933</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,341</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="27"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="218"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="53"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="6"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="52">&nbsp;</TD>
<TD WIDTH="23"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="53"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="6"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1"> </FONT></TD>
<TD WIDTH="27"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="218"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B><I>Net Operating Income</I></B></FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$31,716</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$30,799</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;917</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="52"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="23"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$63,600</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="43"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$62,213</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,387</FONT></TD>
<TD WIDTH="6"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="27"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="218"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="53"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="6"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="52">&nbsp;</TD>
<TD WIDTH="23"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="43"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="53"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="6"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1"> </FONT></TD>
<TD WIDTH="27"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> The results for the three and six months ended June 30, 2000 include $0.3 million of real estate tax refunds. The results
for the three and six months ended June 30, 2001 include $0.6 million in supplemental real estate taxes, and $0.5 million in related tenant reimbursements which represents an estimate of the amount of supplemental real estate taxes collectible from
tenants.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">The results for the six months ended June 30, 2000 include a net lease termination fee of $0.5 million. The results for
the six months ended June 30, 2001 include $140,000 for repairs at the Sea Tac Office Center due to damage resulting from the Seattle earthquake that occurred February 28, 2001. Net of these non-recurring revenues and expenses, the increase in total
operating revenues, total operating expenses and net operating income for the six months ended June 30 would have been 4.1%, 7.1% and 3.3%, respectively.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Same store defined as all stabilized properties owned at January 1, 2000 and still owned at June 30, 2001.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<DIV>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center"> <B><FONT SIZE="2">
<A NAME="884dex998"></A>
Stabilized Portfolio and Occupancy Overview</FONT></B>
<P>&nbsp;</P>
</DIV>
</DIV>

<TABLE ALIGN="center" WIDTH="726" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" ROWSPAN="2"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B># of</B></FONT> <FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>
<BR>
Buildings</B></FONT> </DIV>
<HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=5 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Square Feet</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Occupancy at:</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Total</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Leased</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Available</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>6/30/2001</B></FONT> </DIV>
<HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>3/31/2001</B></FONT> </DIV>
<HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>12/31/2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>OCCUPANCY BY PRODUCT TYPE:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"> <DIV ALIGN="center"></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I><B>Office:</B></I></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"> <DIV ALIGN="center"></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Los Angeles</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">31</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,199,985</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,874,741</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">325,244</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">89.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">96.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.3</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Orange County</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">624,866</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">506,369</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">118,497</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">81.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">71.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">73.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">37</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,700,483</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,700,483</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Other</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">709,575</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">696,528</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13,047</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">98.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">98.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">98.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD> <DIV ALIGN="center"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">87</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,234,909</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,778,121</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">456,788</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">93.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">95.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">96.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD> <DIV ALIGN="center"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I><B>Industrial:</B></I></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"> <DIV ALIGN="center"></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Los Angeles</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">554,490</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">550,979</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,511</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">99.4</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">99.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">99.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Orange County</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">62</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,393,537</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,199,594</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">193,943</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">95.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Other</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">657,921</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">657,921</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD> <DIV ALIGN="center"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">75</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,605,948</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,408,494</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">197,454</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">96.5</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD> <DIV ALIGN="center"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>OCCUPANCY BY REGION:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"> <DIV ALIGN="center"></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Los Angeles</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">38</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,754,475</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,425,720</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">328,755</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">91.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Orange County</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">75</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,018,403</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,705,963</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">312,440</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">93.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">93.8</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">94.2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">37</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,700,483</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,700,483</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&#151;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Other</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,367,496</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,354,449</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13,047</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">99.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">99.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">99.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD> <DIV ALIGN="center"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TOTAL PORTFOLIO</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">162</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,840,857</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,186,615</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">654,242</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">94.9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">96.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD> <DIV ALIGN="center"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center" COLSPAN="7" NOWRAP><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>AVERAGE
OCCUPANCY &#150; STABILIZED PORTFOLIO</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH NOWRAP><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" ALIGN="center" COLSPAN="9" NOWRAP><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>AVERAGE
OCCUPANCY &#150; SAME STORE PORTFOLIO</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Office</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Industrial</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" COLSPAN="2"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Total</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2001</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2000</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" COLSPAN="2"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% Change</B></FONT> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Quarter-to-Date</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">94.7%</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.1%</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">95.8%</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Quarter-to-Date</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">95.7%</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.5%</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1.8%)</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Year-to-Date</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">94.9%</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.1%</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">96.0%</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Year-to-Date</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">96.1%</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">97.3%</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1.2%)</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="3">&nbsp;</FONT></DIV>
<DIV></DIV>
<DIV><FONT SIZE="3">&nbsp;</FONT></DIV>
<DIV ALIGN="center">
<P><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">  </FONT></P>
<P>&nbsp;</P>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Reality Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center"> <DIV ALIGN="center">
<A NAME="884dex999"></A>
</DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Leasing Activity</FONT></B></DIV>
</DIV>
</DIV>
<DIV ALIGN="center"></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Quarter-to-Date
<BR>

<BR>
</B></FONT></DIV>

<TABLE ALIGN="center" WIDTH="727" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=7 VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=9 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2nd Generation</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=3 VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="101"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Weighted
<BR>
Average
<BR>
Lease
<BR>
Term (Mo.)</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=3 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>#&nbsp;of&nbsp; Leases<SUP>(1)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=3 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Square Feet<SUP>(1)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="58"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TI/LC
<BR>
Per Sq.Ft.</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="75"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Maintenance
<BR>
Capex
<BR>
Per Sq.Ft.<SUP>(2)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Changes
<BR>
in
<BR>
Rents<SUP>(3)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Changes
<BR>
in Cash
<BR>
Rents<SUP>(4)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Retention
<BR>
Rates<SUP>(5)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center" WIDTH="53"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="26"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>New</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="12"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="51"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Renewal</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="12"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="40"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>New</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="12"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="51"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Renewal</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="26"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10</FONT></TD>
<TD ALIGN="center" WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="51"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14</FONT></TD>
<TD ALIGN="center" WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="40"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">79,068</FONT></TD>
<TD ALIGN="center" WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="51"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">319,707</FONT></TD>
<TD ALIGN="center" WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="58"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$8.61</FONT></TD>
<TD ALIGN="center" WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="75"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$0.04</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="55"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">24.3%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="12">&nbsp;</TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="42"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14.5%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="16">&nbsp;</TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="45"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">76.0%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="17">&nbsp;</TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="101"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">81</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Industrial</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="26"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11</FONT></TD>
<TD ALIGN="center" WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="51"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14</FONT></TD>
<TD ALIGN="center" WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="40"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">28,752</FONT></TD>
<TD ALIGN="center" WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="51"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">249,168</FONT></TD>
<TD ALIGN="center" WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="58"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$2.57</FONT></TD>
<TD ALIGN="center" WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="75"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$0.01</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="55"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">20.8%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="12">&nbsp;</TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="42"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.1%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="16">&nbsp;</TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="45"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">70.9%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="17">&nbsp;</TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="101"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">70</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="right" WIDTH="53"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="26"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="51"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="40"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="51"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="58"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="75"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="55"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="12"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="42"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="16"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center" WIDTH="45"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="17"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center" WIDTH="101"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="53"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Total</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="26"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21</FONT></TD>
<TD ALIGN="center" WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="51"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">28</FONT></TD>
<TD ALIGN="center" WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="40"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">107,820</FONT></TD>
<TD ALIGN="center" WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="51"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">568,875</FONT></TD>
<TD ALIGN="center" WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="58"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$6.13</FONT></TD>
<TD ALIGN="center" WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="75"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$0.03</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="55"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">23.5%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="12">&nbsp;</TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="42"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11.5%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="16">&nbsp;</TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="45"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">74.4%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="17">&nbsp;</TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="101"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">76</FONT></TD>
</TR>
<TR>
<TD WIDTH="53"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="26"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="51"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="40"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="51"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="58"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="75"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="55"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="42"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="16"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="45"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="17">&nbsp;</TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="101"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
</TR>
</TABLE>
<DIV ALIGN="center">
<P>&nbsp;
<BR>
<FONT SIZE="2"><B>Year-to-Date </B></FONT><FONT SIZE="2">&nbsp;</FONT></P>
<P> </DIV>

<TABLE ALIGN="center" WIDTH="727" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=7 VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=9 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2nd Generation</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=3 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Weighted
<BR>
Average
<BR>
Lease
<BR>
Term (Mo.)</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=3 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>#&nbsp;of&nbsp; Leases<SUP>(1)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=3 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Square Feet<SUP>(1)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TI/LC
<BR>
Per Sq.Ft.</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Maintenance
<BR>
Capex
<BR>
Per Sq.Ft.<SUP>(2)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Changes
<BR>
in
<BR>
Rents<SUP>(3)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Changes
<BR>
in Cash
<BR>
Rents<SUP>(4)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Retention
<BR>
Rates<SUP>(5)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>New</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Renewal</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>New</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Renewal</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">16</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">115,386</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">406,262</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$7.33</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$0.07</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">24.1%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13.9%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">63.3%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">70</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Industrial</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">52,682</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">418,436</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$2.44</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$0.02</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">38.9%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18.4%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">77.1%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">64</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Total</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">34</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">44</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">168,068</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">824,698</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$4.96</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$0.05</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">28.4%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15.3%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">64.8%</FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">67</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Includes first and second generation space, net of month-to-month leases. Excludes leasing on new construction. First
generation space is defined as the space first leased by the Company.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Calculated over entire stabilized portfolio.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Calculated as the change between GAAP rents for new/renewed leases and the expiring GAAP rents for the same
space.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(4)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Calculated as the change between stated rents for new/renewed leases and the expiring stated rents for the same
space.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(5)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Calculated as the percentage of space either renewed or expanded into by existing tenants at lease
expiration.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="3">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="3">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="3">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> </FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B></B></FONT>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Reality Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center">
<A NAME="884dex910"></A>
</DIV>
</DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Lease Expiration Schedule</FONT></B></DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">($ in thousands)</FONT></B></DIV>
<DIV><B><FONT SIZE="2">&nbsp;</FONT></B></DIV>

<TABLE ALIGN="center" WIDTH="612" CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="bottom">
<TH NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year of Expiration</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B># of Expiring
<BR>
Leases</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Total
<BR>
Square Feet(1)</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% of Total
<BR>
Leased Sq. Ft.</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Annual
<BR>
Base Rent</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Annual Rent
<BR>
per Sq. Ft.</B></FONT><FONT SIZE="2"> </FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>OFFICE:</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Remaining 2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">32</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">275,524</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.5</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;4,999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$18.14</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2002</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">63</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">498,125</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8.1</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,224</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18.52</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2003</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">57</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">453,551</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.4</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,809</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17.22</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2004</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">55</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">795,102</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12.9</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17,683</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.24</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2005</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">51</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">885,903</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14.4</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">16,178</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18.26</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2006</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">37</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">593,864</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9.6</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14,224</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">23.95</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2007</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">16</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">659,998</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.7</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,738</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">19.30</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2008</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;8</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">391,302</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6.3</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8,660</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22.13</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2009</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">687,213</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11.1</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17,281</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">25.15</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2010 and beyond</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">921,887</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15.0</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">26,659</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">28.92</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;347</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,162,469</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$135,455</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$21.98</FONT></TD>
</TR>
<TR VALIGN="top">
<TD NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
<TD NOWRAP ALIGN="right">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>INDUSTRIAL:</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Remaining 2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">37</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">237,198</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.4</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;1,989</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;8.39</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2002</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">59</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">339,641</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6.3</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,119</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9.18</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2003</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">53</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">745,075</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13.7</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,185</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6.96</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2004</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">564,287</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.4</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,092</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.25</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2005</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">16</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">756,702</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13.9</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,758</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.61</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2006</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">590,638</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.9</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,572</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.74</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2007</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;3</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">164,595</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.0</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,396</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8.48</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2008</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;5</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">839,712</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15.5</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,268</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.46</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2009</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;7</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">505,976</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9.3</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,654</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.22</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2010 and beyond</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;7</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">686,422</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12.6</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,715</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11.24</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right">&nbsp;</TD>
</TR>
<TR VALIGN="middle">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;218</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,430,246</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;43,748</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;8.06</FONT></TD>
</TR>
<TR VALIGN="top">
<TD NOWRAP ALIGN="left" HEIGHT="21">&nbsp;</TD>
<TD HEIGHT="21">&nbsp;</TD>
<TD NOWRAP ALIGN="center" HEIGHT="21"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD HEIGHT="21">&nbsp;</TD>
<TD NOWRAP ALIGN="right" HEIGHT="21"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD HEIGHT="21">&nbsp;</TD>
<TD HEIGHT="21">&nbsp;</TD>
<TD NOWRAP ALIGN="right" HEIGHT="21"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD ALIGN="left" HEIGHT="21">&nbsp;</TD>
<TD HEIGHT="21">&nbsp;</TD>
<TD NOWRAP ALIGN="right" HEIGHT="21"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD HEIGHT="21">&nbsp;</TD>
<TD NOWRAP ALIGN="right" HEIGHT="21">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TOTAL PORTFOLIO:</B></FONT></TD>
<TD>&nbsp;</TD>
<TD NOWRAP ALIGN="center">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD NOWRAP ALIGN="right">&nbsp;</TD>
<TD ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD NOWRAP ALIGN="right">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD NOWRAP ALIGN="right">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Remaining 2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="left"><DIV ALIGN="CENTER"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;69</FONT></DIV>
</TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">512,722</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.4</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;6,988</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$13.63</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2002</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">122</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">837,766</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.2</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,343</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14.73</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2003</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">110</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,198,626</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.3</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,994</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.84</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2004</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;76</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,359,389</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11.7</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21,775</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">16.02</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2005</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;67</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,642,605</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14.3</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21,936</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13.35</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2006</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;47</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,184,502</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.2</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18,796</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15.87</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2007</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;19</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">824,593</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.1</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14,134</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17.14</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2008</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;13</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,231,014</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.6</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">14,928</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12.13</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2009</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;17</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,193,189</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.3</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">20,935</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17.55</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2010 and beyond</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;25</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,608,309</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13.9</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">34,374</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21.37</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="center"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
</TR>
<TR VALIGN="top">
<TD NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">565</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,592,715</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><SUP>(1)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100.0</FONT></TD>
<TD ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$179,203</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$15.46</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>(1) Excludes space leased under month-to-month leases at June 30, 2001.</I></FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> </FONT>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Reality Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT>  <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A NAME="884dex911"></A>
2001 Dispositions</FONT></B></DIV>
</DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>($ in thousands)</I></FONT></B></DIV>
<DIV><B><FONT SIZE="2">&nbsp;</FONT></B></DIV>

<TABLE ALIGN="center" WIDTH="726" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Project</B></FONT><FONT SIZE="1"> <HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Location</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Type</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Month of
<BR>
Disposition</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Square
<BR>
Feet</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Sales
<BR>
Price</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>1st QUARTER:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6828 Nancy Ridge Drive</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Industrial</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">February</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">39,669</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;3,300</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" HEIGHT="2"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2nd QUARTER:</B></FONT></TD>
<TD HEIGHT="2"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" HEIGHT="2"></TD>
<TD HEIGHT="2"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" HEIGHT="2"></TD>
<TD HEIGHT="2"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" HEIGHT="2"></TD>
<TD HEIGHT="2"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" HEIGHT="2"></TD>
<TD HEIGHT="2"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" HEIGHT="2"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">199 &amp; 201 N. Sunrise Avenue</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Roseville, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Industrial</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">April</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">162,203</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$15,400</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TOTAL YEAR-TO-DATE DISPOSITIONS</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">201,872</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$18,700</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="3">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B> </B></FONT> </DIV>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center">
<A NAME="884dex912"></A>
</DIV>
<B><FONT SIZE="2" FACE="Times New Roman, Times, serif"> </FONT></B> <DIV ALIGN="center"></DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Stabilized Development</FONT></B></DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>($ in thousands)</I></FONT></B></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="725" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Project</B></FONT><FONT SIZE="1"> <HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Location</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Type</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Start
<BR>
Date</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Completion
<BR>
Date</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Rentable
<BR>
Square Feet</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Total Est.
<BR>
Investment</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Occupancy</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>1st QUARTER:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">None</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2nd QUARTER:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Pacific Technology Center</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">67,995</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$12,190</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Sorrento Rim Business Park II</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">102,875</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">25,342</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">170,870</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$37,532</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TOTAL YEAR-TO-DATE
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STABILIZED DEVELOPMENT</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">170,870</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$37,532</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>Some of the enclosed information presented is forward-looking in nature, including information concerning development timing and investment amounts. Although the
information is based on Kilroy Realty Corporation&#146;s current expectations, actual results could vary from expectations stated here. Numerous factors will affect Kilroy Realty Corporation&#146;s actual results, some of which are beyond its
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 and capital market conditions. You are cautioned
not to place undue reliance on this information, which speaks only as of the date of this report. Kilroy Realty Corporation assumes no obligation to update publicly any forward-looking information, whether as a result of new information, future
events or otherwise. For a discussion of important risks related to Kilroy Realty Corporation&#146;s business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and
events referred to in the forward-looking information, see the discussion under the caption &#147;Business Risks&#147; in Kilroy Realty Corporation&#146;s annual report on Form 10-K for the year ended December 31, 2000. In light of these risks,
uncertainties and assumptions, the forward-looking events contained contained in this supplement information might not occur.</I></FONT></DIV>
<DIV></DIV>
<I> </I>  <DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">  </FONT>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center">
<A NAME="884dex913"></A>
</DIV>
</DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>In-Process and Committed Development Projects</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B><I>($ in thousands)</I></B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Project</B></FONT><FONT SIZE="1"> <HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Location</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Type</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=3 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Estimated
<BR>
Construction Period</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Est.
<BR>
Stabilization
<BR>
Date<SUP>(2)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Rentable
<BR>
Square
<BR>
Feet</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Total
<BR>
Estimated
<BR>
Investment</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>%
<BR>
Committed <SUP>(3)</SUP>
</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TH WIDTH="8"></TH>
<TH WIDTH="8"></TH>
<TH WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="Times New Roman, Times, serif"><B>Start Date</B></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"> </FONT><FONT SIZE="1"> <HR ALIGN="center"
WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH WIDTH="12"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="Times New Roman, Times, serif"><B>Compl. Date</B></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"> </FONT><FONT SIZE="1"> <HR ALIGN="center"
WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>PROJECTS IN LEASE-UP:</B></FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="85"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="32"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="59"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="69"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="69"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="48"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="61"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="49"></TD>
<TD WIDTH="30"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calabasas Park Centre&#151;Phase II</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Calabasas, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2000</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2001</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">98,706</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;21,166</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">58</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calabasas Park Centre&#151;Phase III<SUP>(4)</SUP>
</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Calabasas, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3Q 2000</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2001</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3Q 2001</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,789</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,676</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Innovation Corporate&nbsp;Center&#151;Lot 8</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2000</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2001</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">46,759</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,093</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">51</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Innovation Corporate&nbsp;Center&#151;Lot 12</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2000</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2001</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">70,617</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,926</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peregrine Systems&nbsp;Corporate Ctr&#151;Bld&nbsp;3<SUP>(1),(5)</SUP>
</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Del Mar, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2000</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2001</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4Q 2001</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">129,752</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">27,168</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="264"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="85"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="32"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="48"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="61"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="49"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="85"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="32"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="59"></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="69"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="69"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">357,623</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;72,029</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">62</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="264"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="85"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="32"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="48"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="61"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="49"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>PROJECTS UNDER&nbsp;CONSTRUCTION:</B></FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="85"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="32"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="59"></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="69"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="69"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="48"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="61"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="49"></TD>
<TD WIDTH="30"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Imperial &amp; Sepulveda</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">El Segundo, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2001</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4Q 2001</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">133,678</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;35,752</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Corporate Center&#151;Lots 25 &amp;&nbsp;27</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2001</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2003</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">68,400</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13,907</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sorrento Gateway&#151;Lot 4<SUP>(1)</SUP>
</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2001</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">60,662</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15,888</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Westside Media&nbsp;Center&#151;Phase III</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">West LA, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4Q 2000</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1Q 2003</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">151,000</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">53,527</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="264"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="85"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="32"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="48"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="61"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="49"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="85"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="32"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="59"></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="69"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="69"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">413,740</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$119,074</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="264"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="85"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="32"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="48"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="61"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="49"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" COLSPAN="11"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TOTAL PROJECTS IN&nbsp;LEASE UP AND UNDER CONSTRUCTION</B></FONT><B><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">771,363</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$191,103</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">37</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="264"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="85"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="32"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="48"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="61"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="49"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>COMMITTED DEVELOPMENT:</B></FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="85"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="32"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="59"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="69"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="69"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="48"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="61"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="49"></TD>
<TD WIDTH="30"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brobeck, Phleger &amp; Harrison Expansion</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Del Mar, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3Q 2001</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">89,168</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;22,910</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" WIDTH="264"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peregrine Systems Corporate Ctr&#151;Bld 4<SUP>(1)</SUP>
</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="85"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Del Mar, CA</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="32"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="59"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3Q 2001</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4Q 2002</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="69"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2Q 2003</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">114,780</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">26,050</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="264"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="85"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="32"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="48"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="61"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="49"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left" WIDTH="264"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="85"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="32"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="59"></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="69"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right" WIDTH="69"></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">203,948</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;48,960</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="264"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="85"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="32"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="48"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="61"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="49"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left" COLSPAN="11"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TOTAL IN-PROCESS&nbsp;AND COMMITTED&nbsp;DEVELOPMENT&nbsp;PROJECTS:</B></FONT><B><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT SIZE="1">&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="48"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">975,311</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="61"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$240,063</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right" WIDTH="49"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">50</FONT></TD>
<TD VALIGN="bottom" ALIGN="left" WIDTH="30"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD WIDTH="264"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="85"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="32"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="59"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="12"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="69"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="48"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="61"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD WIDTH="8"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="49"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Project is being developed by a Development LLC in which the Company holds a 50% managing interest. The estimated
investment figure includes the capital required to purchase the remaining 50% interest in the project.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Based on management&#146;s estimation of the earlier of stabilized occupancy (95%) or one year from the date of
substantial completion.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(3)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Includes executed leases, calculated on a square footage basis.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(4)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">This project is 100% leased to one tenant. It is expected that the tenant will take occupancy of 100% of the space during
the third quarter of 2001.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="3%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(5)</FONT></I></DIV>
</TD>
<TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">This project is 100% leased to one tenant. The tenant occupied 82% of the project at June 30, 2001 under a staged move-in
plan.
<BR>
It is expected that the tenant will take occupancy of the remaining space during the fourth quarter of 2001.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>Some of the enclosed information presented is forward-looking in nature, including information concerning development timing and investment amounts. Although the
information is based on Kilroy Realty Corporation&#146;s current expectations, actual results could vary from expectations stated here. Numerous factors will affect Kilroy Realty Corporation&#146;s actual results, some of which are beyond its
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 and capital market conditions. You are cautioned
not to place undue reliance on this information, which speaks only as of the date of this report. Kilroy Realty Corporation assumes no obligation to update publicly any forward-looking information, whether as a result of new information, future
events or otherwise. For a discussion of important risks related to Kilroy Realty Corporation&#146;s business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and
events referred to in the forward-looking information, see the discussion under the caption &#147;Business Risks&#147; in Kilroy Realty Corporation&#146;s annual report on Form 10-K for the year ended December 31, 2000. In light of these risks,
uncertainties and assumptions the forward-looking events contained in this supplemental information might not occur.</I></FONT></DIV>
<FONT SIZE="2" FACE="Times New Roman, Times, serif"><B></B></FONT> <DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">  </FONT> </DIV>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Reality Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center">
<A NAME="884dex914"></A>
</DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Future Development Pipeline</FONT></B></DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>($ in thousands)</I></FONT></B></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Project</B></FONT><FONT SIZE="1"> <HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Location</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Type</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Rentable
<BR>
Square
<BR>
Feet</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Total
<BR>
Estimated
<BR>
Investment</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>SAN DIEGO COUNTY:</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Innovation Corporate Center&#151;Lot 2</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">51,187</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;9,681</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Innovation Corporate Center&#151;Lot 4</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">75,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13,150</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Innovation Corporate Center&#151;Lot 9</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">65,867</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,803</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Innovation Corporate Center&#151;Lot 10</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">37,405</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,554</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Corporate Center&#151;Lots 3, 4 &amp; 6</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">225,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">44,128</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Corporate Center&#151;Lot 8</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">116,157</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">24,992</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;San Diego Corporate Center&#151;Lot 7</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Del Mar, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">207,842</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">62,200</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Santa Fe Summit&#151;Phase I</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">150,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">32,243</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Santa Fe Summit&#151;Phase II</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">150,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">33,958</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sorrento Gateway&#151;Lot 1</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">54,878</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,052</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sorrento Gateway&#151;Lot 2<SUP>(1)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">70,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13,730</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sorrento Gateway&#151;Lot 3<SUP>(1)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">56,800</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,064</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sorrento Gateway&#151;Lot 7<SUP>(1)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Diego, CA</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Office</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">57,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,484</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,317,136</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$287,039</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TOTAL FUTURE DEVELOPMENT PIPELINE</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,317,136</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$287,039</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1)</FONT></I></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><I><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Project is being developed by a Development LLC in which the Company holds a 50% interest. The estimated investment figure
includes the capital required to purchase the remaining 50% interest in the project.</FONT></I></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>Some of the enclosed information presented is forward-looking in nature, including information concerning development timing and investment amounts. Although the
information is based on Kilroy Realty Corporation&#146;s current expectations, actual results could vary from expectations stated here. Numerous factors will affect Kilroy Realty Corporation&#146;s actual results, some of which are beyond its
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 and capital market conditions. You are cautioned
not to place undue reliance on this information, which speaks only as of the date of this report. Kilroy Realty Corporation assumes no obligation to update publicly any forward-looking information, whether as a result of new information, future
events or otherwise. For a discussion of important risks related to Kilroy Realty Corporation&#146;s business and an investment in its securities, including risks that could cause actual results and events to differ materially from results and
events referred to in the forward-looking information, see the discussion under the caption &#147;Business Risks&#147; in Kilroy Realty Corporation&#146;s annual report on Form 10-K for the year ended December 31, 2000. In light of these risks,
uncertainties and assumptions, the forward-looking events contained in this supplement information might not occur.</I></FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="center"></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">  </FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B></B></FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> </FONT>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center"> </DIV>
<DIV ALIGN="center"></DIV>
</DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A NAME="884dex915"></A>
Capital Structure</FONT></B></DIV>
<DIV ALIGN="center"><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>At June 30, 2001</I></FONT></B></DIV>
<DIV ALIGN="center"><I><B><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">($ in thousands)</FONT></B></I></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="613" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Shares/Units
<BR>
at June 30,&nbsp;2001</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Aggregate
<BR>
Principal
<BR>
Amount or
<BR>
$ Value
<BR>
Equivalent</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>% of Total
<BR>
Market
<BR>
Capitalization</B></FONT><FONT SIZE="1"> <HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>DEBT:</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Secured Debt</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;438,947</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.9%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Unsecured Line of Credit</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">185,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Unsecured Term Facility</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">100,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Debt</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;723,947</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.1%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD HEIGHT="17"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD HEIGHT="17"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD HEIGHT="17"><FONT SIZE="1"> </FONT></TD>
<TD HEIGHT="17"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD HEIGHT="17"><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD HEIGHT="17"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD HEIGHT="17" ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD HEIGHT="17">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>EQUITY:</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8.075% Series A Cumulative Redeemable Preferred Units<SUP>(1)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,500,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9.375% Series C Cumulative Redeemable Preferred Units<SUP>(1)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">700,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">35,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.0%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9.250% Series D Cumulative Redeemable Preferred Units<SUP>(1)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">900,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">45,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Common Units Outstanding<SUP>(2)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,062,854</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">89,129</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Common Shares Outstanding<SUP>(2)</SUP>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">27,265,614</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">793,429</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45.0%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Equity</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,037,558</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58.9%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TOTAL MARKET CAPITALIZATION</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,761,505</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100.0%</FONT></DIV>
</TD>
<TD VALIGN="bottom" ALIGN="left">&nbsp;</TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD> <DIV ALIGN="right"><FONT SIZE="1"> </FONT></DIV>
<FONT SIZE="1"> <HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE> </FONT></TD>
<TD>&nbsp;</TD>
</TR>
</TABLE>
<P></P>
<TABLE BORDER="0" WIDTH="630" CELLPADDING="0" CELLSPACING="0" ALIGN="center">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"> <DIV ALIGN="center"></DIV>
</TD>
<TD WIDTH="5%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>(1)</I><B><I>&nbsp;</I></B>&nbsp;</FONT></DIV>
</TD>
<TD WIDTH="93%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>Value based on $50.00 per share liquidation preference.</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<TABLE BORDER="0" WIDTH="630" CELLPADDING="0" CELLSPACING="0" ALIGN="center">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top">&nbsp;</TD>
<TD WIDTH="5%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>(2)</I>&nbsp;&nbsp;</FONT></DIV>
</TD>
<TD WIDTH="93%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>Valued based on closing share price of $29.10 at June 30, 2001.</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><I><B><FONT SIZE="2">&nbsp;</FONT></B></I></DIV>
<DIV ALIGN="center"></DIV>

<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B></B></FONT></P>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="3"><B>Kilroy Realty Corporation
<BR>
Second Quarter 2001 Supplemental Financial Report</B></FONT></FONT> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>
<A NAME="884dex916"></A>
Debt Analysis
<BR>
</B></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B><I>At June 30, 2001
<BR>
</I></B></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B><I>($ in thousands)</I></B></FONT> </DIV>
<P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="690" ALIGN="center">
<TR>
<TD WIDTH=17></TD>
<TD WIDTH=73></TD>
<TD WIDTH=19></TD>
<TD WIDTH=15></TD>
<TD WIDTH=64></TD>
<TD WIDTH=19></TD>
<TD WIDTH=19></TD>
<TD WIDTH=74></TD>
<TD WIDTH=15></TD>
<TD WIDTH=20></TD>
<TD WIDTH=64></TD>
<TD WIDTH=23></TD>
<TD WIDTH=18></TD>
<TD WIDTH=55></TD>
<TD WIDTH=13></TD>
<TD WIDTH=15></TD>
<TD WIDTH=71></TD>
<TD COLSPAN="3"></TD>
</TR>
<TR>
<TH VALIGN="TOP" COLSPAN="20" HEIGHT="30"> <DIV ALIGN="center"> <FONT SIZE="2" FACE="Times New Roman, Times, serif">SECURED DEBT AND UNSECURED TERM FACILITY PRINCIPAL REPAYMENT SCHEDULE</FONT></DIV>
</TH>
</TR>
<TR VALIGN="bottom">
<TH WIDTH=17 HEIGHT="16"><FONT SIZE="2"></FONT> </TH>
<TH WIDTH=73 HEIGHT="16">
<P ALIGN=center><FONT FACE="Times New Roman" SIZE="2">2001</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH WIDTH=19 HEIGHT="16"><FONT SIZE="2"></FONT> </TH>
<TH COLSPAN="2" HEIGHT="16"> <FONT FACE="Times New Roman" SIZE="2">2002</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH WIDTH=19 HEIGHT="16"><FONT SIZE="2"></FONT></TH>
<TH COLSPAN="2" HEIGHT="16">
<P ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2003</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH WIDTH=15 HEIGHT="16"><FONT SIZE="2"></FONT></TH>
<TH COLSPAN="2" HEIGHT="16">
<P ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2004</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH WIDTH=23 HEIGHT="16"><FONT SIZE="2"></FONT></TH>
<TH WIDTH=18 HEIGHT="16"> <DIV ALIGN="center"><FONT SIZE="2">&#160; </FONT></DIV>
</TH>
<TH WIDTH=55 HEIGHT="16">
<P ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2005</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH WIDTH="13" HEIGHT="16">
<P ALIGN="center"><FONT SIZE="2"></FONT></P>
</TH>
<TH COLSPAN=2 HEIGHT="16"> <FONT FACE="Times New Roman" SIZE="2">Thereafter</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH WIDTH="10" HEIGHT="16"><FONT SIZE="2"></FONT></TH>
<TH COLSPAN=2 HEIGHT="16"> <DIV ALIGN="center"></DIV>
<FONT FACE="Times New Roman" SIZE="2">Total</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN="20"><FONT SIZE="2"></FONT> </TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=17>
<P ALIGN=right><FONT FACE="Times New Roman" SIZE="2">$</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=73>
<P ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2">12,175</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=19><FONT SIZE="2"></FONT></TD>
<TD VALIGN="TOP" WIDTH=15>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=64>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,148</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=19><FONT SIZE="2"></FONT></TD>
<TD VALIGN="TOP" WIDTH=19>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=74>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">173,678</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=15><FONT SIZE="2"></FONT></TD>
<TD VALIGN="TOP" WIDTH=20>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=64>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">127,719</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=23><FONT SIZE="2"></FONT></TD>
<TD VALIGN="TOP" WIDTH=18>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=55>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">16,965</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=13><FONT SIZE="2"></FONT></TD>
<TD VALIGN="TOP" WIDTH=15>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=71> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">202,262</FONT></DIV>
</TD>
<TD VALIGN="TOP" WIDTH=10><FONT SIZE="2"></FONT></TD>
<TD VALIGN="TOP" WIDTH=15>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=69> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">538,947</FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN="20"><FONT SIZE="2"></FONT> </TD>
</TR>
</TABLE>
<P>
<TABLE ALIGN="center" CELLPADDING="0" CELLSPACING="0" WIDTH="590">
<TR>
<TH VALIGN="TOP" COLSPAN="11"> <FONT FACE="Times New Roman" SIZE="2">TOTAL DEBT COMPOSITION</FONT> </TH>
</TR>
<TR>
<TH VALIGN="TOP" COLSPAN="3"><FONT SIZE="2">&#160; &#160; &#160; </FONT></TH>
<TH VALIGN="TOP" WIDTH=12><FONT SIZE="2"><B>&#160; </B></FONT></TH>
<TH VALIGN="TOP" COLSPAN="2" ROWSPAN="2"> <FONT FACE="Times New Roman" SIZE="2">% of
<BR>
Total Debt</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH VALIGN="TOP" WIDTH=15> <DIV ALIGN="center"><FONT SIZE="2"><B>&#160; </B></FONT></DIV>
</TH>
<TH COLSPAN=4 VALIGN="TOP">
<P ALIGN=center><FONT FACE="Times New Roman" SIZE="2">Weighted Average</FONT></P>
</TH>
</TR>
<TR>
<TH VALIGN="TOP" COLSPAN="3"><FONT SIZE="2">&#160; &#160; &#160; </FONT></TH>
<TH VALIGN="TOP" WIDTH=12><FONT SIZE="2"><B>&#160; </B></FONT></TH>
<TH WIDTH="15" VALIGN="TOP"> <DIV ALIGN="center"><FONT SIZE="2"></FONT></DIV>
</TH>
<TH VALIGN="TOP" COLSPAN="2"> <FONT FACE="Times New Roman" SIZE="2">Interest Rate</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH VALIGN="TOP" WIDTH="23">
<P ALIGN=center><FONT SIZE="2"></FONT></P>
</TH>
<TH VALIGN="TOP" WIDTH="75"><FONT FACE="Times New Roman" SIZE="2">Maturity</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN="11">
<P><FONT SIZE="2"><B><I><FONT FACE="Times New Roman">Secured vs. Unsecured Debt:</FONT></I></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=50><FONT SIZE="2">&#160; </FONT></TD>
<TD COLSPAN=2 VALIGN="TOP">
<P><FONT FACE="Times New Roman" SIZE="2">Secured Debt</FONT><FONT SIZE="2">&#160; &#160; </FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=12><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=63>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">60.6</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=28><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD>
<TD VALIGN="TOP" WIDTH=15><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=62>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6.9</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=38><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD>
<TD VALIGN="TOP" WIDTH=23><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=75>
<P ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">5.3</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=50><FONT SIZE="2">&#160; </FONT></TD>
<TD COLSPAN=2 VALIGN="TOP">
<P><FONT FACE="Times New Roman" SIZE="2">Unsecured Debt</FONT> </P>
</TD>
<TD VALIGN="TOP" WIDTH=12><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=63>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">39.4</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=28><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD>
<TD VALIGN="TOP" WIDTH=15><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=62>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7.6</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=38><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD>
<TD VALIGN="TOP" WIDTH=23><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=75>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif" SIZE="2">2.0</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=50><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" COLSPAN="2"><FONT SIZE="2">&#160; &#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=12><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" COLSPAN="2"> <DIV ALIGN="right"><FONT SIZE="2">&#160; </FONT></DIV>
</TD>
<TD VALIGN="TOP" WIDTH=15><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" COLSPAN="2"> <DIV ALIGN="right"><FONT SIZE="2">&#160; </FONT></DIV>
</TD>
<TD VALIGN="TOP" WIDTH=23><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=75> <DIV ALIGN="center"><FONT SIZE="2">&#160; </FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN="11">
<P><FONT SIZE="2"><B><I><FONT FACE="Times New Roman">Floating vs. Fixed Rate Debt:</FONT></I></B>&#160; &#160; &#160; &#160; &#160; &#160; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=50><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" COLSPAN="2">
<P><FONT FACE="Times New Roman" SIZE="2">Fixed Rate Debt <SUP>(1),(2),(4)</SUP>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=12><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=63>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">77.1</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=28><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD>
<TD VALIGN="TOP" WIDTH=15><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=62>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7.5</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=38><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD>
<TD VALIGN="TOP" WIDTH=23><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=75>
<P ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4.6</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=50><FONT SIZE="2">&#160; </FONT></TD>
<TD COLSPAN=2 VALIGN="TOP">
<P><FONT FACE="Times New Roman" SIZE="2">Floating Rate Debt<SUP> (3)</SUP>
</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=12><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=63>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">22.9</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=28><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD>
<TD VALIGN="TOP" WIDTH=15><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=62>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6.0</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=38><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD>
<TD VALIGN="TOP" WIDTH=23><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=75>
<P ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2.0</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=50><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" COLSPAN="2"><FONT SIZE="2">&#160; &#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=12><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" COLSPAN="2"> <DIV ALIGN="center"><FONT SIZE="2">&#160; </FONT></DIV>
</TD>
<TD VALIGN="TOP" WIDTH=15><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=62> <HR NOSHADE WIDTH="40%" SIZE="1" ALIGN="right"> </TD>
<TD VALIGN="TOP" WIDTH=38><FONT SIZE="2"></FONT></TD>
<TD VALIGN="TOP" WIDTH=23><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=75> <HR NOSHADE WIDTH="30%" SIZE="1" ALIGN="center"> </TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="TOP">
<P><FONT SIZE="2"><B><I><FONT FACE="Times New Roman">Total Debt</FONT></I></B>&#160; </FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=12><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" COLSPAN="2"> <DIV ALIGN="center"><FONT SIZE="2">&#160; </FONT></DIV>
</TD>
<TD VALIGN="TOP" WIDTH=15><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=62>
<P ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7.2</FONT></P>
</TD>
<TD VALIGN="TOP" WIDTH=38><FONT FACE="Times New Roman" SIZE="2">%</FONT></TD>
<TD VALIGN="TOP" WIDTH=23><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=75>
<P ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4.0</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" WIDTH=50><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" COLSPAN="2"><FONT SIZE="2">&#160; &#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=12><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" COLSPAN="2"> <DIV ALIGN="center"><FONT SIZE="2">&#160; </FONT></DIV>
</TD>
<TD VALIGN="TOP" WIDTH=15><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=62> <HR NOSHADE WIDTH="40%" SIZE="2" ALIGN="right"> </TD>
<TD VALIGN="TOP" WIDTH=38><FONT SIZE="2"></FONT></TD>
<TD VALIGN="TOP" WIDTH=23><FONT SIZE="2">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH=75> <HR NOSHADE WIDTH="30%" SIZE="2" ALIGN="center"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN="11">&nbsp; </TD>
</TR>
</TABLE>
<P>
<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="center" WIDTH="500">
<TR>
<TH COLSPAN="5"> <FONT SIZE="2" FACE="Times New Roman, Times, serif">UNSECURED LINE OF CREDIT</FONT> </TH>
</TR>
<TR>
<TH WIDTH="172"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Total Line</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH WIDTH="17">&nbsp;</TH>
<TH WIDTH="250"><FONT FACE="Times New Roman, Times, serif" SIZE="2">Outstanding Balance </FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH WIDTH="21">&nbsp;</TH>
<TH WIDTH="228"><FONT FACE="Times New Roman, Times, serif" SIZE="2">Expiration Date</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
</TR>
<TR>
<TD HEIGHT="18" WIDTH="172">
<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$400,000</FONT></P>
</TD>
<TD HEIGHT="18" WIDTH="17"> <DIV ALIGN="center"></DIV>
</TD>
<TD HEIGHT="18" WIDTH="250"> <DIV ALIGN="center"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$185,000</FONT></DIV>
</TD>
<TD HEIGHT="18" WIDTH="21"> <DIV ALIGN="center"></DIV>
</TD>
<TD HEIGHT="18" WIDTH="228"> <DIV ALIGN="center"><FONT FACE="Times New Roman, Times, serif" SIZE="2">November 2002</FONT></DIV>
</TD>
</TR>
</TABLE>
<P>
<TABLE ALIGN="center" WIDTH="500" CELLSPACING="0" CELLPADDING="0">
<TR>
<TH COLSPAN="3"> <FONT SIZE="2" FACE="Times New Roman, Times, serif">CAPITALIZED INTEREST</FONT> </TH>
</TR>
<TR>
<TH WIDTH="250"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Quarter-to-Date</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
<TH WIDTH="21"><FONT SIZE="2"></FONT></TH>
<TH WIDTH="228">
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">Year-to-Date</FONT> <HR NOSHADE WIDTH="100%" SIZE="1"> </TH>
</TR>
<TR>
<TD HEIGHT="18" WIDTH="250"> <DIV ALIGN="center"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$3.4 million</FONT></DIV>
</TD>
<TD HEIGHT="18" WIDTH="21"> <DIV ALIGN="center"><FONT SIZE="2"></FONT></DIV>
</TD>
<TD HEIGHT="18" WIDTH="228"> <DIV ALIGN="center"><FONT FACE="Times New Roman, Times, serif" SIZE="2">$6.7 million</FONT></DIV>
</TD>
</TR>
</TABLE>
<P>
<TABLE WIDTH="100%" CELLSPACING="0" CELLPADDING="0">
<TR>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><I>(1)</I></FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="96%">
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><I>The Company currently has an interest-rate swap agreement to fix LIBOR on $150 million of its floating rate debt at 6.95% which expires in February 2002.</I></FONT></P>
</TD>
</TR>
<TR>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif" SIZE="2">(2)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="96%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><I>The Company currently has an interest-rate swap agreement to fix LIBOR on $150 million of its floating rate debt at 5.48% which expires in November 2002.</I></FONT></TD>
</TR>
<TR>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><I>(3)</I></FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="96%">
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><I>The Company, through one of its Development LLCs, currently has an interest-rate cap agreement to cap LIBOR on its floating rate construction debt at 8.5% which expires in April 2002. The
notional amount of the cap increases over the life of the agreement as the balance of the related construction loan increases. At June 30, 2001, the notional amount of the cap agreement was approximately </I></FONT><FONT SIZE="2"
FACE="Times New Roman, Times, serif"><I>$54.4 million. </I></FONT></P>
</TD>
</TR>
<TR>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><I>(4)</I></FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="96%">
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><I>The percentage of fixed rate debt to total debt does not take into consideration the portion of floating rate debt capped by the Company's interest-rate cap agreement. Including the effects
of the interest-rate cap agreement, the Company had fixed or capped approximately 84.7% of its total outstanding debt at June 30, 2001.</I></FONT></P>
</TD>
</TR>
</TABLE>
 </BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>4
<FILENAME>dex992.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<HTML>
<HEAD>
 <TITLE>Press Release</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF">

<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD>&nbsp;</TD>
<TD WIDTH="34%"> <DIV ALIGN="right">Exhibit 99.2</DIV>
</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
<TD WIDTH="34%">&nbsp;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
<TD WIDTH="34%">&nbsp;</TD>
</TR>
<TR>
<TD><B>Contact:</B></TD>
<TD WIDTH="34%"><B>FOR RELEASE:</B></TD>
</TR>
<TR>
<TD>Richard E. Moran Jr.</TD>
<TD WIDTH="34%">August 1, 2001</TD>
</TR>
<TR>
<TD>Executive Vice President</TD>
<TD WIDTH="34%">&nbsp;</TD>
</TR>
<TR>
<TD>and Chief Financial Officer</TD>
<TD WIDTH="34%">&nbsp;</TD>
</TR>
<TR>
<TD>(310) 563-5533</TD>
<TD WIDTH="34%">&nbsp;</TD>
</TR>
<TR>
<TD>or</TD>
<TD WIDTH="34%">&nbsp;</TD>
</TR>
<TR>
<TD>Tyler H. Rose</TD>
<TD WIDTH="34%">&nbsp;</TD>
</TR>
<TR>
<TD>Senior Vice President</TD>
<TD WIDTH="34%">&nbsp;</TD>
</TR>
<TR>
<TD>and Treasurer</TD>
<TD WIDTH="34%">&nbsp;</TD>
</TR>
<TR>
<TD>(310) 563-5531</TD>
<TD WIDTH="34%">&nbsp;</TD>
</TR>
</TABLE>
<P ALIGN="center"> <B>KILROY REALTY CORPORATION REPORTS</B>
<BR>
<B>SECOND QUARTER FINANCIAL RESULTS </B></P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>LOS ANGELES, August 1, 2001</B> &#150; Kilroy Realty Corporation <B><I>(NYSE: KRC)</I></B> 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.</P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The company&#146;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&#146;s Westside Media Center
project. </P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&#146;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&#146;s SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. </P>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&#146;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
<U>www.kilroyrealty.com</U>.</P>
<P ALIGN="center"> ############### </P>

<P ALIGN="center"><FONT SIZE=1>KILROY REALTY CORPORATION
<BR>
</FONT><U><FONT SIZE=1>SUMMARY QUARTERLY RESULTS
<BR>
</FONT></U><FONT SIZE=1>(unaudited, in thousands, except per share data)</FONT></P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0 VSPACE="0" HSPACE="0">
<TR VALIGN="bottom">
<TD WIDTH="61%" HEIGHT="55">&nbsp;</TD>
<TD COLSPAN="2" ALIGN="center" NOWRAP HEIGHT="55"><FONT SIZE=1>Three Months</FONT><FONT SIZE=1>
<BR>
Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2001</FONT></TD>
<TD WIDTH="2%" ALIGN="center" HEIGHT="55">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP HEIGHT="55"><FONT SIZE=1>Three Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2000</FONT></TD>
<TD WIDTH="2%" ALIGN="center" HEIGHT="55">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP HEIGHT="55"><FONT SIZE=1>Six Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2001</FONT></TD>
<TD WIDTH="2%" ALIGN="center" HEIGHT="55">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP HEIGHT="55"><FONT SIZE=1>Six Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2000</FONT></TD>
<TD WIDTH="2%" HEIGHT="55">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="61%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Revenues</FONT></TD>
<TD ALIGN="left" WIDTH="3%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>58,234</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>45,336</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>108,601</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>89,106</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%">&nbsp;</TD>
<TD WIDTH="3%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Net income available to common stockholders (1)</FONT></TD>
<TD ALIGN="left" WIDTH="3%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>15,097</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>12,804</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>21,523</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>22,381</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%">&nbsp;</TD>
<TD WIDTH="3%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Weighted average common shares outstanding - basic</FONT></TD>
<TD WIDTH="3%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>27,160</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>26,259</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>26,938</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>26,744</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Weighted average common shares outstanding - diluted</FONT></TD>
<TD WIDTH="3%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>27,380</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>26,348</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>27,177</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>26,788</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%">&nbsp;</TD>
<TD WIDTH="3%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Net income per share of common stock - basic</FONT></TD>
<TD ALIGN="left" WIDTH="3%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.56</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.49</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>0.80</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.84</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Net income per share of common stock - diluted</FONT></TD>
<TD ALIGN="left" WIDTH="3%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.55</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.49</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>0.79</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.84</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%">&nbsp;</TD>
<TD WIDTH="3%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Funds From Operations</FONT></TD>
<TD ALIGN="left" WIDTH="3%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>28,237</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>20,153</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>50,113</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>40,832</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%">&nbsp;</TD>
<TD WIDTH="3%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Weighted average common shares/units outstanding - basic (2)</FONT></TD>
<TD WIDTH="3%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,260</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,041</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>30,243</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,586</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Weighted average common shares/units outstanding - diluted (2)</FONT></TD>
<TD WIDTH="3%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,481</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,131</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>30,482</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,630</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%">&nbsp;</TD>
<TD WIDTH="3%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Funds From Operations per common share/unit - basic (2)</FONT></TD>
<TD ALIGN="left" WIDTH="3%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.93</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.67</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>1.66</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1.33</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Funds From Operations per common share/unit - diluted (2)</FONT></TD>
<TD ALIGN="left" WIDTH="3%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.93</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.67</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>1.64</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1.33</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%">&nbsp;</TD>
<TD WIDTH="3%" ALIGN="right">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="right">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Common shares outstanding at end of period</FONT></TD>
<TD WIDTH="3%" ALIGN="right">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>27,266</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="right">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>26,455</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="61%"><FONT SIZE=1>Common partnership units outstanding at end of period</FONT></TD>
<TD WIDTH="3%" ALIGN="right">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>3,063</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="right">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>3,748</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="middle">
<TD WIDTH="61%">&nbsp;</TD>
<TD WIDTH="3%" ALIGN="right">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="61%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Total common shares and units outstanding at end of period</FONT></TD>
<TD WIDTH="3%" ALIGN="right">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>30,329</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,203</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
</TABLE>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0 VSPACE="0" HSPACE="0">
<TR VALIGN="bottom">
<TD COLSPAN="2">&nbsp;</TD>
<TD ALIGN="center" WIDTH="8%" NOWRAP><FONT SIZE=1>June 30, 2001</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="7%" NOWRAP><FONT SIZE=1>June 30, 2000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="middle">
<TD COLSPAN="2">&nbsp;</TD>
<TD WIDTH="8%"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="7%"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="middle">
<TD COLSPAN="2"><FONT SIZE=1>Occupancy rates:</FONT></TD>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN="2" HEIGHT="16"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;California</FONT></TD>
<TD ALIGN="right" WIDTH="8%" HEIGHT="16"><FONT SIZE=1>94.5</FONT></TD>
<TD WIDTH="2%" HEIGHT="16"><FONT SIZE=1>%</FONT></TD>
<TD ALIGN="right" WIDTH="7%" HEIGHT="16"><FONT SIZE=1>97.1</FONT></TD>
<TD WIDTH="2%" HEIGHT="16"><FONT SIZE=1>%</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN="2" HEIGHT="16"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Washington</FONT></TD>
<TD ALIGN="right" WIDTH="8%" HEIGHT="16"><FONT SIZE=1>99.8</FONT></TD>
<TD WIDTH="2%" HEIGHT="16"><FONT SIZE=1>%</FONT></TD>
<TD ALIGN="right" WIDTH="7%" HEIGHT="16"><FONT SIZE=1>99.7</FONT></TD>
<TD WIDTH="2%" HEIGHT="16"><FONT SIZE=1>%</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD HEIGHT="17" COLSPAN="2"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Arizona</FONT></TD>
<TD ALIGN="right" WIDTH="8%" HEIGHT="17"><FONT SIZE=1>100.0</FONT></TD>
<TD WIDTH="2%" HEIGHT="17"><FONT SIZE=1>%</FONT></TD>
<TD ALIGN="right" WIDTH="7%" HEIGHT="17"><FONT SIZE=1>100.0</FONT></TD>
<TD WIDTH="2%" HEIGHT="17"><FONT SIZE=1>%</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN="2" HEIGHT="18"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Nevada</FONT></TD>
<TD ALIGN="right" WIDTH="8%" HEIGHT="18"><FONT SIZE=1>100.0</FONT></TD>
<TD WIDTH="2%" HEIGHT="18"><FONT SIZE=1>%</FONT></TD>
<TD ALIGN="right" WIDTH="7%" HEIGHT="18"><FONT SIZE=1>100.0</FONT></TD>
<TD WIDTH="2%" HEIGHT="18"><FONT SIZE=1>%</FONT></TD>
</TR>
<TR VALIGN="middle">
<TD COLSPAN="2" HEIGHT="12"></TD>
<TD WIDTH="8%" HEIGHT="12"> <HR NOSHADE SIZE=1></TD>
<TD WIDTH="2%" HEIGHT="12"></TD>
<TD WIDTH="7%" HEIGHT="12"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%" HEIGHT="12">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD COLSPAN="2"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average total</FONT></TD>
<TD ALIGN="right" WIDTH="8%"><FONT SIZE=1>94.9</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>%</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>97.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>%</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN="2">&nbsp;</TD>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN="2"><FONT SIZE=1>Total square feet of stabilized properties owned at end of period:</FONT></TD>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN="2"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Office</FONT></TD>
<TD ALIGN="right" WIDTH="8%"><FONT SIZE=1>7,235</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>6,333</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN="2"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Industrial</FONT></TD>
<TD ALIGN="right" WIDTH="8%"><FONT SIZE=1>5,606</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>6,238</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="middle">
<TD COLSPAN="2">&nbsp;</TD>
<TD WIDTH="8%"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="7%"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD COLSPAN="2"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></TD>
<TD ALIGN="right" WIDTH="8%"><FONT SIZE=1>12,841</FONT></TD>
<TD WIDTH="2%"></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>12,571</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="2%" NOWRAP VALIGN="bottom"><FONT SIZE=1>(1)&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="79%" VALIGN="bottom"><FONT SIZE=1>Net income after minority interests.</FONT></TD>
<TD ALIGN="right" WIDTH="8%" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="bottom"></TD>
<TD ALIGN="right" WIDTH="7%" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="bottom">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="2%" NOWRAP VALIGN="bottom"><FONT SIZE=1>(2)&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="79%" VALIGN="bottom"><FONT SIZE=1>Calculated based on weighted average shares outstanding assuming conversion of all common limited partnership units outstanding.</FONT></TD>
<TD ALIGN="right" WIDTH="8%" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="bottom"></TD>
<TD ALIGN="right" WIDTH="7%" VALIGN="bottom">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="bottom">&nbsp;</TD>
</TR>
</TABLE>

<P ALIGN="center"><U><FONT SIZE=1>KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS
<BR>
</FONT></U><FONT SIZE=1>(unaudited, in thousands)</FONT></P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="bottom">
<TD WIDTH="68%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="13%"><FONT SIZE=1>June 30,
<BR>
</FONT><FONT SIZE=1>2001</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="12%"><FONT SIZE=1>December 31,</FONT><FONT SIZE=1>
<BR>
2000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1><U>ASSETS</U></FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>INVESTMENT IN REAL ESTATE:</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Land and improvements</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>285,733</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>266,444</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Buildings and improvements</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>1,154,660</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>1,054,995</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Undeveloped land and construction in progress, net</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>143,564</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>162,633</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Investment in unconsolidated real estate</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>12,405</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment in real estate</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>1,583,957</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>1,496,477</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>(224,157</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>(205,332</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in real estate, net</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>1,359,800</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>1,291,145</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>Cash and cash equivalents</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>13,898</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>17,600</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>Restricted cash</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>7,222</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>35,014</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>Tenant receivables, net</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>30,095</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>32,521</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>Note receivable from related party</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>33,274</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>Deferred financing and leasing costs, net</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>37,455</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>39,674</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>Prepaid expenses and other assets</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>5,371</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>7,941</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL ASSETS</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>1,453,841</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>1,457,169</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD WIDTH="1%"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="13%"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="12%"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1><U>LIABILITIES &amp; STOCKHOLDERS' EQUITY</U></FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>LIABILITIES:</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Secured debt</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>438,947</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>432,688</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Unsecured line of credit</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>185,000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>191,000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Unsecured term facility</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>100,000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>100,000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>38,554</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>33,911</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Accrued distributions</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>14,558</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>13,601</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Rents received in advance and tenant security deposits</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>16,302</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>17,810</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>793,361</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>789,010</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>MINORITY INTERESTS:</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;8.075% Series A Cumulative Redeemable</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred unitholders</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>73,716</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>73,716</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;9.375% Series C Cumulative Redeemable</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred unitholders</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>34,464</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>34,464</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;9.250% Series D Cumulative Redeemable</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred unitholders</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>44,321</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>44,321</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Common unitholders of the Operating Partnership</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>50,076</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>62,485</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Minority interest in Development LLCs</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>12,177</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>11,748</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total minority interests</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>214,754</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>226,734</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>STOCKHOLDERS' EQUITY:</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Common stock</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>273</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>265</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>474,864</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>460,390</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Distributions in excess of earnings</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>(23,742</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>(19,230</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>(5,669</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="12%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>445,726</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>441,425</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD WIDTH="68%"><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES &amp; STOCKHOLDERS' EQUITY</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>1,453,841</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="12%"><FONT SIZE=1>1,457,169</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="68%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
</TABLE>
<P></P>

<P ALIGN="center"> <U><FONT SIZE=1>KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS</FONT></U>
<BR>
<FONT SIZE=1>(unaudited, in thousands, except per share data)</FONT></P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="bottom">
<TD>&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="center" NOWRAP><FONT SIZE=1>Three Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2001</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP><FONT SIZE=1>Three Months
<BR>
</FONT><FONT SIZE=1>Ended</FONT><FONT SIZE=1>
<BR>
June 30, 2000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP><FONT SIZE=1>Six Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2001</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP><FONT SIZE=1>Six Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>REVENUES:</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Rental income</FONT></TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>46,029</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>39,370</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>90,408</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>77,072</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Tenant reimbursements</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>6,170</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>4,594</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>11,690</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>9,288</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Interest income</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>277</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1,016</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>713</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>1,302</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Other income</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>5,758</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>356</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>5,790</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>1,444</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>58,234</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>45,336</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>108,601</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>89,106</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>EXPENSES:</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Property expenses</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>7,443</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>6,074</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>14,338</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>11,532</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Real estate taxes</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>4,744</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>3,049</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>8,379</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>6,436</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;General and administrative expenses</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>3,034</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>2,555</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>6,388</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>5,187</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Ground leases</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>375</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>399</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>767</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>788</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>10,612</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>9,948</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>21,403</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>17,776</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>12,521</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>9,645</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>25,954</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>18,968</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>38,729</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>31,670</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>77,229</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>60,687</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Income from operations</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>19,505</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>13,666</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>31,372</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>28,419</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Net gains on dispositions of operating properties</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>1,234</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>4,273</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>1,539</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>3,968</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD HEIGHT="23"><FONT SIZE=1>Income before minority interests and cumulative effect</FONT></TD>
<TD WIDTH="1%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="13%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="2%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="1%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="6%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="2%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="1%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="7%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="2%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="1%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="7%" HEIGHT="23">&nbsp;</TD>
<TD WIDTH="2%" HEIGHT="23">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of change in accounting principle</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>20,739</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>17,939</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>32,911</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>32,387</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Minority interests:</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Distributions on Cumulative Redeemable</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred units</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>(3,375</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(3,375</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(6,750</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(6,750</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Minority interest in earnings of Operating Partnership</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>(1,796</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(1,843</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(2,641</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(3,215</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;Minority interest in earnings of Development LLCs</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>(471</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>83</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(605</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(41</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total minority interests</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>(5,642</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(5,135</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(9,996</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(10,006</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Net income before cumulative effect of change in</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;accounting principle</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>15,097</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>12,804</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>22,915</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>22,381</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Cumulative effect of change in accounting principle</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(1,392</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=1> </TD>
<TD> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=1> </TD>
<TD> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=1> </TD>
<TD> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Net income</FONT></TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>15,097</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>12,804</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>21,523</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>22,381</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Weighted average shares outstanding - basic</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>27,160</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>26,259</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>26,938</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>26,744</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Weighted average shares outstanding - diluted</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>27,380</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>26,348</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>27,177</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>26,788</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Income per common share - basic</FONT></TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>0.56</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.49</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>0.80</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>0.84</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Income per common share - diluted</FONT></TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="13%"><FONT SIZE=1>0.55</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.49</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>0.79</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>0.84</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
</TR>
</TABLE>
<P></P>

<P ALIGN="center"> <FONT SIZE=1>KILROY REALTY CORPORATION
<BR>
</FONT> <U><FONT SIZE=1>FUNDS FROM OPERATIONS
<BR>
</FONT></U> <FONT SIZE=1>(unaudited, in thousands, except per share data)</FONT></P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="bottom">
<TD>&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="center" NOWRAP><FONT SIZE=1>Three Months</FONT><FONT SIZE=1>
<BR>
Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2001</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP><FONT SIZE=1>Three Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP><FONT SIZE=1>Six Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2001</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP><FONT SIZE=1>Six Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="middle">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD><FONT SIZE=1>Net income</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>15,097</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>12,804</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>21,523</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>22,381</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments:</FONT></TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority interest in earnings of Operating Partnership</FONT></TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>1,796</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1,843</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>2,641</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>3,215</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>12,030</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>9,645</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>25,000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>18,968</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains on dispositions of operating properties</FONT></TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(1,234</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(4,273</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(1,539</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(3,968</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of change in accounting principle</FONT></TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1,392</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash amortization of restricted stock grants</FONT></TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>548</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>134</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1,096</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%" ALIGN="left">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>236</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="middle">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>Funds From Operations</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>28,237</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>20,153</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>50,113</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>40,832</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="7%"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>Weighted average common shares/units outstanding - basic</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>30,260</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,041</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,243</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,586</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>Weighted average common shares/units outstanding - diluted</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>30,481</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,131</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,482</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>30,630</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>Funds From Operations per common share/unit - basic</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>0.93</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.67</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1.66</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1.33</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="7%"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>Funds From Operations per common share/unit - diluted</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>0.93</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.67</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1.64</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1.33</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD></TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="7%"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
</TR>
</TABLE>
<P ALIGN="center"> <FONT SIZE=1>KILROY REALTY CORPORATION
<BR>
</FONT> <U><FONT SIZE=1>FUNDS AVAILABLE FOR DISTRIBUTION
<BR>
</FONT></U> <FONT SIZE=1>(unaudited, in thousands, except per share data)</FONT></P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="bottom">
<TD>&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="center" NOWRAP><FONT SIZE=1>Three Months
<BR>
</FONT><FONT SIZE=1>Ended</FONT>
<BR>
<FONT SIZE=1>June 30, 2001</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP><FONT SIZE=1>Three Months</FONT><FONT SIZE=1>
<BR>
Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP><FONT SIZE=1>Six Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2001</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="center" COLSPAN=2 NOWRAP><FONT SIZE=1>Six Months
<BR>
</FONT><FONT SIZE=1>Ended
<BR>
</FONT><FONT SIZE=1>June 30, 2000</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN=2> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>Funds From Operations</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>28,237</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>20,153</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>50,113</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>40,832</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD>&nbsp;&nbsp;&nbsp;<FONT SIZE=1>Adjustments:</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=1>Amortization of deferred financing costs</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>399</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>487</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>780</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>693</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=1>Tenant improvements, leasing commissions</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="bottom">
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=1>and recurring capital expenditures</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(3,668</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(1,827</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(4,679</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(2,731</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=1>Net effect of straight-line rents</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>(873</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(1,549</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(2,587</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="1%">&nbsp;</TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>(3,057</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2"> <HR NOSHADE SIZE=1> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>Funds Available for Distribution</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>24,095</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>17,264</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>43,627</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>35,737</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="7%"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>Funds Available for Distribution per common share/unit - basic</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>0.80</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.57</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1.44</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1.17</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD>&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="7%"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD><FONT SIZE=1>Funds Available for Distribution per common share/unit - diluted</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT SIZE=1>0.79</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>0.57</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1.43</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD ALIGN="left" WIDTH="1%"><FONT SIZE=1>$</FONT></TD>
<TD ALIGN="right" WIDTH="6%"><FONT SIZE=1>1.17</FONT></TD>
<TD WIDTH="2%">&nbsp;</TD>
</TR>
<TR VALIGN="top">
<TD></TD>
<TD> <HR NOSHADE SIZE=2></TD>
<TD WIDTH="7%"> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD WIDTH="2%">&nbsp;</TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD> <HR NOSHADE SIZE=2> </TD>
<TD>&nbsp;</TD>
</TR>
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