EXHIBIT 99.2

Contact:		FOR RELEASE:
Richard E. Moran Jr.		February 2, 2004
Executive Vice President
and Chief Financial Officer
(310) 481-8483
or
Tyler H. Rose
Senior Vice President
and Treasurer
(310) 481-8484

KILROY REALTY CORPORATION REPORTS

FOURTH QUARTER FINANCIAL RESULTS

LOS ANGELES, February 2, 2004—Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its fourth quarter ended December 31, 2003, with net income of $4.9 million, or $0.18 per share, compared to $14.0 million, or $0.50 per share in the fourth quarter of 2002. Revenues from continuing operations in the fourth quarter totaled $54.2 million, compared to $52.5 million in the fourth quarter of 2002.

For its fiscal year ended December 31, 2003, KRC reported net income of $49.3 million, or $1.78 per share, compared to $40.3 million, or $1.45 per share, in 2002. Revenues from continuing operations in 2003 totaled $227.8 million, compared to $204.2 million in 2002.

KRC’s funds from operations (FFO) totaled $20.2 million, or $0.62 per share, in the fourth quarter of 2003, compared to $24.3 million, or $0.76 per share in the prior year’s fourth quarter. For the year, FFO totaled $108.9 million, or $3.41 per share, compared to $97.9 million, or $3.09 per share, in 2002.

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

“We were very pleased with our leasing progress in 2003, particularly in San Diego,” commented John B. Kilroy, Jr., president and CEO. “We continue to see signs that the Southern California real estate markets will improve further in 2004,” he added.

KRC added $135 million of new development to its operating portfolio in 2003, totaling an aggregate of 399,000 square feet of space in three new office properties. The

company also added 156,000 square feet of space to its portfolio in two redeveloped projects, investing approximately $14 million in incremental redevelopment costs. At year-end, KRC’s stabilized portfolio was 90.3% occupied.

Within its committed development program, KRC has one property in lease-up totaling approximately 209,000 square feet of space, and two properties undergoing redevelopment totaling approximately 316,000 square feet. This committed development pipeline represents a total estimated investment of approximately $145 million, of which $114 million has been spent to date.

Earnings guidance for 2004 will be discussed by KRC management during the company’s February 3, 2004 earnings conference call. The call will begin at 11:00 am PST and last approximately one hour. Those interested in listening via the Internet can access the conference call at www.kilroyrealty.com. Please go to the website 15 minutes before the call and register. It may be necessary to download audio software to hear the conference call. Those interested in listening via telephone can access the conference call at (800) 915-4836. A replay of the conference call will be available via phone through February 11, 2004 at (800) 428-6051, reservation #318927 or via the Internet at the company’s website.

Some of the information presented in this release is forward-looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995. Although Kilroy Realty Corporation believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that could cause actual results to differ materially from Kilroy Realty’s expectations are set forth as risk factors in the company’s Securities and Exchange Commission reports and filings. Included among these factors are changes in general economic conditions, including changes in the economic conditions affecting industries in which its principal tenants compete; any failure of the general economy to recover timely from the current economic downturn; Kilroy Realty’s ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs, including utility costs; future demand for its debt and equity securities; its ability to refinance its debt on reasonable terms at maturity; its ability to complete current and future development projects on schedule and on budget;

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the demand for office space in markets in which Kilroy Realty has a presence; and risks detailed from time to time in the company’s SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Many of these factors are beyond Kilroy Realty’s ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, Kilroy Realty claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of California and Washington. Principal submarkets for KRC’s current development program include El Segundo and coastal San Diego. At December 31, 2003, the company owned 7.3 million square feet of commercial office space and 4.9 million square feet of industrial space. More information can be found at www.kilroyrealty.com.

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KILROY REALTY CORPORATION

SUMMARY QUARTERLY RESULTS

(unaudited, in thousands, except per share data)

		Three Months Ended December 31, 2003			Three Months Ended December 31, 2002			Year Ended December 31, 2003				Year Ended December 31, 2002
Revenues from continuing operations		$	54,205		$	52,541		$	227,786			$	204,171
Revenues including discontinued operations		$	54,205		$	54,425		$	229,723			$	213,884
Net income available to common stockholders(1)		$	4,938		$	13,965		$	49,263			$	40,312
Weighted average common shares outstanding—basic			27,941			27,453			27,527				27,450
Weighted average common shares outstanding—diluted			28,167			27,691			27,738				27,722
Net income per share of common stock—basic		$	0.18		$	0.51		$	1.79			$	1.47
Net income per share of common stock—diluted		$	0.18		$	0.50		$	1.78			$	1.45
Funds From Operations(2) (3)		$	20,197		$	24,262		$	108,881			$	97,940
Weighted average common shares/units outstanding—basic(4)			32,149			31,689			31,745				31,443
Weighted average common shares/units outstanding—diluted(4)			32,374			31,928			31,957				31,715
Funds From Operations per common share/unit—basic(4)		$	0.63		$	0.77		$	3.43			$	3.11
Funds From Operations per common share/unit—diluted(4)		$	0.62		$	0.76		$	3.41			$	3.09
Common shares outstanding at end of period									28,209				27,420
Common partnership units outstanding at end of period									4,154				4,237
Total common shares and units outstanding at end of period									32,363				31,657
								December 31, 2003				December 31, 2002
Stabilized portfolio occupancy rates:
Los Angeles									81.3	%			86.4	%
Orange County									94.9	%			98.8	%
San Diego									92.3	%			93.1	%
Other									96.5	%			97.4	%
Weighted average total									90.3	%			93.7	%
Total square feet of stabilized properties owned at end of period:
Office									7,316				7,448
Industrial									4,879				4,881
Total									12,195				12,329

(1) Net income after minority interests.

(2) Reconciliation of Net Income to Funds From Operations and management statement on Funds From Operations included at page 4.

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

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

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KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

		December 31, 2003				December 31, 2002
ASSETS
INVESTMENT IN REAL ESTATE:
Land and improvements		$	289,730			$	288,228
Buildings and improvements, net			1,305,145				1,289,525
Undeveloped land and construction in progress, net			131,411				108,465
Total investment in real estate			1,726,286				1,686,218
Accumulated depreciation and amortization			(321,372	)			(278,503	)
Investment in real estate, net			1,404,914				1,407,715
Cash and cash equivalents			9,892				15,777
Restricted cash			8,558				6,814
Current receivables, net			4,919				3,074
Deferred rent receivables, net			36,804				29,466
Deferred leasing costs, net			36,651				31,427
Deferred financing costs, net			3,657				6,221
Prepaid expenses and other assets			7,240				6,108
TOTAL ASSETS		$	1,512,635			$	1,506,602
LIABILITIES & STOCKHOLDERS’ EQUITY
LIABILITIES:
Secured debt		$	526,048			$	507,037
Unsecured line of credit			235,000				255,000
Accounts payable, accrued expenses and other liabilities			39,905				43,917
Accrued distributions			16,369				15,670
Rents received in advance, tenant security deposits and deferred revenue			20,904				24,310
Total liabilities			838,226				845,934
MINORITY INTERESTS:
8.075% Series A Cumulative Redeemable Preferred unitholders			73,716				73,716
9.375% Series C Cumulative Redeemable Preferred unitholders							34,464
9.250% Series D Cumulative Redeemable Preferred unitholders			44,321				44,321
Common unitholders of the Operating Partnership			66,502				68,196
Total minority interests			184,539				220,697
STOCKHOLDERS’ EQUITY:
7.800% Series E Cumulative Redeemable Preferred stock			38,437
Common stock			282				273
Additional paid-in capital			508,958				493,116
Distributions in excess of earnings			(53,449	)			(47,629	)
Accumulated net other comprehensive loss			(4,358	)			(5,789	)
Total stockholders’ equity			489,870				439,971
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY		$	1,512,635			$	1,506,602

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KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

		Three Months Ended December 31, 2003				Three Months Ended December 31, 2002				Year Ended December 31, 2003				Year Ended December 31, 2002
REVENUES:
Rental income		$	48,190			$	46,982			$	183,339			$	180,024
Tenant reimbursements			5,313				4,554				20,433				21,475
Other property income			702				1,005				24,014				2,672
Total revenues			54,205				52,541				227,786				204,171
EXPENSES:
Property expenses			9,245				8,274				33,855				30,133
Real estate taxes			4,344				3,862				15,797				15,164
Provision for bad debts			(96	)			2,017				1,583				6,815
Ground leases			326				319				1,296				1,354
General and administrative expenses			6,446				2,975				19,140				12,557
Interest expense			9,242				8,553				33,385				35,380
Depreciation and amortization			14,783				14,222				56,237				58,797
Total expenses			44,290				40,222				161,293				160,200
OTHER INCOME:
Interest income			66				62				196				513
Total other income			66				62				196				513
Income from continuing operations before net gain on dispositions			9,981				12,381				66,689				44,484
Net gain on disposition of operating properties															896
Income from continuing operations before minority interests			9,981				12,381				66,689				45,380
Minority interests:
Distributions on Cumulative Redeemable Preferred units			(3,038	)			(3,375	)			(13,163	)			(13,500	)
Original issuance costs of redeemed preferred units			(945	)							(945	)
Minority interest in earnings of Operating Partnership attributable to continuing operations			(711	)			(1,889	)			(6,908	)			(4,392	)
Recognition of previously reserved Development LLC preferred return															3,908
Minority interest in earnings of Development LLCs															(1,024	)
Total minority interests			(4,694	)			(5,264	)			(21,016	)			(15,008	)
Income from continuing operations			5,287				7,117				45,673				30,372
Discontinued operations:
Revenues from discontinued operations							1,884				1,937				9,713
Expenses from discontinued operations							(931	)			(1,036	)			(4,906	)
Net gain on disposition of discontinued operations							6,100				3,642				6,570
Minority interest in earnings of Operating Partnership attributable to discontinued operations							(205	)			(604	)			(1,437	)
Total discontinued operations			—				6,848				3,939				9,940
Net income			5,287				13,965				49,612				40,312
Preferred dividends		$	(349	)						$	(349	)
Net income available for common shareholders		$	4,938			$	13,965			$	49,263			$	40,312
Weighted average shares outstanding—basic			27,941				27,453				27,527				27,450
Weighted average shares outstanding—diluted			28,167				27,691				27,738				27,722
Net Income per common share—basic		$	0.18			$	0.51			$	1.79			$	1.47
Net Income per common share—diluted		$	0.18			$	0.50			$	1.78			$	1.45

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KILROY REALTY CORPORATION FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

		Three Months Ended December 31, 2003			Three Months Ended December 31, 2002				Year Ended December 31, 2003				Year Ended December 31, 2002
Net income available for common shareholders		$	4,938		$	13,965			$	49,263			$	40,312
Adjustments:
Minority interest in earnings of Operating Partnership			711			2,094				7,512				5,829
Depreciation and amortization			14,548			14,303				55,748				59,265
Net gain on dispositions of operating properties						(6,100	)			(3,642	)			(7,466	)
Funds From Operations(1) (2)		$	20,197		$	24,262			$	108,881			$	97,940
Weighted average common shares/units outstanding—basic			32,149			31,689				31,745				31,443
Weighted average common shares/units outstanding—diluted			32,374			31,928				31,957				31,715
Funds From Operations per common share/unit—basic		$	0.63		$	0.77			$	3.43			$	3.11
Funds From Operations per common share/unit—diluted		$	0.62		$	0.76			$	3.41			$	3.09

KILROY REALTY CORPORATION FUNDS AVAILABLE FOR DISTRIBUTION

(unaudited, in thousands, except per share data)

		Three Months Ended December 31, 2003				Three Months Ended December 31, 2002				Year Ended December 31, 2003				Year Ended December 31, 2002
Funds From Operations		$	20,197			$	24,262			$	108,881			$	97,940
Adjustments:
Amortization of deferred financing costs			810				970				2,531				2,647
Original issuance costs for redeemed preferred units			945								945
Non-cash amortization of restricted stock grants			771				953				3,129				3,424
Tenant improvements, leasing commissions and recurring capital expenditures			(4,536	)			(7,082	)			(22,189	)			(11,113	)
Net effect of straight-line rents			(2,790	)			(1,260	)			(8,011	)			(4,339	)
Funds Available for Distribution(2)		$	15,397			$	17,843			$	85,286			$	88,559

(1) Management believes that Funds From Operations (“FFO”) is a useful supplemental measure of the Company’s operating performance. The Company computes FFO in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). The White Paper defines FFO as net income or loss computed in accordance with generally accepted accounting principles (“GAAP”), excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable operating property, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships and joint ventures. Other real estate investment trusts (“REITs”) may use different methodologies for calculating FFO and, accordingly, the Company’s FFO may not be comparable to other REITs.

Because FFO excludes depreciation and amortization, gains and losses from property dispositions, and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, general and administrative expenses, and interest costs, providing perspective not immediately apparent from net income. In addition, management believes that FFO provides useful information to the investment community about the Company’s financial performance when compared to other REITs since FFO is generally recognized as the industry standard for reporting the operations of REITs.

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

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

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