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What changed in KILROY REALTY CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of KILROY REALTY CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+464 added−625 removedSource: 10-K (2026-02-11) vs 10-K (2025-02-13)

Top changes in KILROY REALTY CORP's 2025 10-K

464 paragraphs added · 625 removed · 363 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

37 edited+14 added−52 removed13 unchanged
Biggest changeRisk Factors” contained in this report. • Global market, economic, and geopolitical conditions may adversely affect our business, results of operations, liquidity, and financial condition, and those of our tenants. • Many of our costs, such as operating and general and administrative expenses, interest expense and real estate construction costs, as well as the value of our assets, could be adversely impacted by periods of heightened inflation. • All of our properties are located in California, Seattle, Washington, and Austin, Texas and we may therefore be susceptible to adverse economic conditions and regulations, as well as natural disasters, in those areas. • Potential casualty losses, such as earthquake losses, may adversely affect our financial condition, results of operations, and cash flows. • Continuing uncertainty in the office leasing market could adversely affect our business, financial condition, results of operations, and cash flows. • Our performance and the market value of our securities are subject to risks associated with our investments in real estate assets and with trends in the real estate industry. • We depend upon significant tenants, and the loss of a significant tenant could adversely affect our financial condition, results of operations, ability to borrow funds, and cash flows. • Downturns in tenants’ businesses may reduce our revenues and cash flows. • A large percentage of our tenants operate in a concentrated group of industries and downturns in these industries could adversely affect our financial condition, results of operations, and cash flows. • We may be unable to renew leases or re-lease available space. • We are subject to governmental regulations that may affect the development, redevelopment, and use of our properties. • Epidemics, pandemics or other outbreaks, and restrictions intended to prevent their spread, could adversely impact our business, financial condition, results of operations, cash flows, liquidity, and ability to satisfy our debt service obligations, and to pay dividends and distributions to security holders. • We face significant competition, which may decrease the occupancy and rental rates of our properties. • In order to maintain the quality of our properties and successfully compete against other properties, we must periodically spend money to maintain, repair, and renovate our properties, which reduces our cash flows. • We may not be able to rebuild our existing properties to their existing specifications if we experience a substantial or comprehensive loss of such properties. • Our business is subject to risks associated with climate change and our sustainability strategies. • We are subject to environmental and health and safety laws and regulations, and any costs to comply with, or liabilities arising under, such laws and regulations could be material. • We may be unable to complete acquisitions and successfully operate acquired properties. • There are significant risks associated with property acquisitions as well as development and redevelopment. • We face risks associated with the development and operation of mixed-use commercial properties. • Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on co-venturers’ financial condition, and disputes between us and our co-venturers, and could expose us to potential liabilities and losses. 14 • We own certain properties subject to ground leases and other restrictive agreements that limit our uses of the properties, restrict our ability to sell or otherwise transfer the properties, and expose us to the loss of the properties if such agreements are breached by us, terminated, or not renewed. • Real estate assets are illiquid, and we may not be able to sell our properties when we desire. • We may invest in securities related to real estate, which could adversely affect our ability to pay dividends and distributions to our security holders. • We face risks associated with short-term liquid investments. • Our property taxes could increase due to reassessment or property tax rate changes. • Our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting. • We face risks associated with perceived or actual security breaches through cyber attacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology (IT) networks and related systems or those of our service providers. • We face risks associated with compliance with ever evolving federal and state laws relating to the handling of information about individuals, which involves significant expenditure and resources, and any failure by us or our vendors to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect our business, results of operations, and financial condition. • The actual density of our undeveloped land holdings and/or any particular land parcel may not be consistent with our potential density estimates. • Loss of key executive officers or our inability to successfully transition key executive officers could harm our operations and financial performance, and adversely affect the quoted trading price of our securities. • We could be adversely affected by labor disputes, strikes, or other union job actions. • We may not be able to meet our debt service obligations. • The covenants in the agreements governing the Operating Partnership’s unsecured revolving credit facility, unsecured term loan facility, and note purchase agreements may limit our ability to make distributions to the holders of our common stock. • A downgrade in our credit ratings could materially adversely affect our business and financial condition. • An increase in interest rates would increase our interest costs on variable rate debt and new debt and could adversely affect our ability to refinance existing debt, conduct development, redevelopment, and acquisition activity and recycle capital. • Our growth depends on external sources of capital that are outside of our control and the inability to obtain capital on terms that are acceptable to us, or at all, could adversely affect our financial condition and results of operations. • Our organizational structure includes approval rights for limited partners and restrictions that may delay, deter or prevent a change of control. • We may issue additional common units and shares of capital stock without unitholder or stockholder approval, as applicable, which may dilute unitholder or stockholder investment and decrease the quoted trading price per share of the Company’s common stock. • The board of directors may change investment and financing policies without stockholder or unitholder approval. • Loss of the Company’s REIT status would have significant adverse consequences to us and the value of the Company’s common stock. 15
Biggest changeRisk Factors” contained in this report. • Global market, economic, and geopolitical conditions may adversely affect us and our tenants. • Many of our costs, such as operating and general and administrative expenses, interest expense, and real estate construction costs, as well as the value of our assets, could be adversely impacted by periods of heightened inflation. • All of our properties are located in California, the Seattle, Washington Metropolitan Area, and the Austin, Texas Metropolitan Area and we may therefore be susceptible to adverse economic conditions and regulations, as well as natural disasters, in those areas. • Potential casualty losses, such as earthquake losses, may adversely affect us. • Continuing uncertainty in the office leasing market could adversely affect us. • Our performance and the market value of our securities are subject to risks associated with our investments in real estate assets and with trends in the real estate industry. • We depend upon significant tenants, and the loss of a significant tenant could adversely affect us. • Downturns in tenants’ businesses may reduce our revenues and cash flows. • A large percentage of our tenants operate in a concentrated group of industries and downturns in these industries could adversely affect us. • We may be unable to renew leases or re-lease available space. • We are subject to governmental regulations that may affect the development, redevelopment, and use of our properties. • Epidemics, pandemics or other outbreaks, and restrictions intended to prevent their spread, could adversely impact us. • We face significant competition, which may decrease the occupancy and rental rates of our properties. • In order to maintain the quality of our properties and successfully compete against other properties, we must periodically spend money to maintain, repair, and renovate our properties, which reduces our cash flows. • We may not be able to rebuild our existing properties to their existing specifications if we experience a substantial or comprehensive loss of such properties. • Our business is subject to risks associated with climate change. • We are subject to environmental and health and safety laws and regulations, and any costs to comply with, or liabilities arising under, such laws and regulations could be material. • Real estate assets are illiquid, and we may not be able to sell our properties when we desire. • We may be unable to complete acquisitions and successfully operate acquired properties. • There are significant risks associated with property acquisitions as well as development and redevelopment. • We face risks associated with the development and operation of mixed-use commercial properties. • The actual density of our undeveloped land holdings and/or any particular land parcel may not be consistent with our potential density estimates. • Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on co-venturers’ financial condition, and disputes between us and our co-venturers, and could expose us to potential liabilities and losses. 10 • We own certain properties subject to ground leases and other restrictive agreements that limit our uses of the properties, restrict our ability to sell or otherwise transfer the properties, and expose us to the loss of the properties if such agreements are breached by us, terminated, or not renewed. • We may invest in securities related to real estate, which could adversely affect us. • We face risks associated with short-term liquid investments. • Our property taxes could increase due to reassessment or property tax rate changes. • Our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting. • We face risks associated with perceived or actual security breaches, cyberattacks, cyber intrusions, or other significant disruptions of our information technology ("IT") systems, operational technology ("OT") systems, networks and related systems, including those of our third‑party service providers. • We face risks associated with compliance with ever evolving federal and state laws relating to the handling of information about individuals, which involves significant expenditure and resources, and any failure by us or our vendors to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect us. • Loss of key executive officers or our inability to successfully transition key executive officers could harm our operations and financial performance, and adversely affect the quoted trading price of our securities. • We could be adversely affected by labor disputes, strikes, or other union job actions. • We may not be able to meet our debt service obligations. • The covenants in the agreements governing the Operating Partnership’s unsecured revolving credit facility, unsecured term loan facility, and note purchase agreements may limit our ability to make distributions to the holders of our common stock. • A downgrade in our credit ratings could materially adversely affect us. • We are not limited in our ability to incur debt. • An increase in interest rates would increase our interest costs on variable rate debt and new debt, and could adversely affect our ability to refinance existing debt, conduct development, redevelopment, and acquisition activity, and recycle capital. • Our growth depends on external sources of capital that are outside of our control and the inability to obtain capital on terms that are acceptable to us, or at all, could adversely affect us. • Our common limited partners have limited approval rights, which may prevent us from completing a change of control transaction that may be in the best interests of all our security holders. • There are restrictions on the ownership of the Company’s capital stock that limit the opportunities for a change of a control at a premium to existing security holders. • The Company’s charter contains provisions that may delay, deter, or prevent a change of control transaction. • The Board of Directors may change investment and financing policies without stockholder or unitholder approval. • We may issue additional common units and shares of capital stock without unitholder or stockholder approval, as applicable, which may dilute unitholder or stockholder investment. • Sales of a substantial number of shares of the Company’s securities, or the perception that this could occur, could result in decreasing the quoted trading price per share of the Company’s common stock and of the Operating Partnership’s publicly-traded notes. • Loss of the Company’s REIT status would have significant adverse consequences to us and the value of the Company’s common stock. 11
Green leases (also known as aligned leases, high performance leases or energy efficient leases) aim to align the financial and energy incentives of building owners and tenants so they can work together to save money, conserve resources, and ensure the efficient operation of buildings.
Green leases (also known as aligned leases, high performance leases or energy efficient leases) aim to align the financial and energy incentives of building owners and tenants so they can 6 work together to save money, conserve resources, and ensure the efficient operation of buildings.
We have received the Institute for Market Transformation’s (“IMT’s”) Green Lease Leaders award for 11 consecutive years. We build our new development and redevelopment projects to Leadership in Energy and Environmental Design (“LEED”) specifications. All of our office and life science new development projects pursue LEED certification, at the Platinum or Gold level.
We have received the Institute for Market Transformation’s (“IMT’s”) Green Lease Leaders award for 12 consecutive years. We build our new development and redevelopment projects to Leadership in Energy and Environmental Design (“LEED”) specifications. All of our new office and life science development projects pursue LEED certification, at the Platinum or Gold level.
We believe our people are our greatest resource and managing and developing talent is our most important responsibility. Our human capital development goals and initiatives demonstrate our commitment to enhancing employee growth, satisfaction, and wellness while maintaining a collaborative and inclusive culture.
We believe our people are our greatest resource and managing and developing talent is our most important responsibility. Our human capital development goals and initiatives demonstrate our commitment to enhancing employee growth, satisfaction, and wellness while promoting a collaborative and inclusive culture.
We focus on enhancing our long-term sustainable growth in Net Operating Income and FFO from our properties by: • maximizing cash flows through new and renewal leasing activity; • managing portfolio credit risk through effective underwriting, including the use of credit enhancements to mitigate individual tenant credit risks; • maintaining and developing long-term relationships with industry-leading companies in our markets; • managing operating expenses through the efficient use of internal property management, leasing, marketing, financing, accounting, legal, and construction and development management functions; • investing in capital improvements to enhance the competitive advantages of our properties in their respective markets and integrating technology, including building management systems, security operation centers, and tenant experience solutions to provide a premium experience to our tenant base while reducing operating costs; and • attracting and retaining motivated employees to meet our operating and financial goals. 7 Development and Redevelopment Strategies.
We focus on enhancing our long-term sustainable growth in operating income and cash flow from our properties by: • maximizing cash flows through new and renewal leasing activity; • managing portfolio credit risk through effective underwriting, including the use of credit enhancements to mitigate individual tenant credit risks; • maintaining and developing long-term relationships with industry-leading companies in our markets; • managing operating expenses through the efficient use of internal property management, leasing, marketing, financing, accounting, legal, and construction and development management functions; • investing in capital improvements to enhance the competitive advantages of our properties in their respective markets and integrating technology, including building management systems, security operation centers, and tenant experience solutions to provide a premium experience to our tenant base while reducing operating costs; and • attracting and retaining motivated employees to meet our operating and financial goals.
Climate-related risks are governed by the board of directors through the CSR&S Committee and by management through a newly established ESG Steering Committee which includes members from Asset Management, Development & Construction, Finance, Accounting, Human Resources, Investments, Leasing, Legal, and Sustainability. We are proud to have achieved carbon neutral operations since 2020.
Climate-related risks are governed by the Board of Directors through the CSR&S Committee and by management through the ESG Steering Committee which includes members from Asset Management, Development & Construction, Finance, Accounting, Human Resources, Investments, Leasing, Legal, and Sustainability. We are proud to have achieved carbon neutral operations since 2020.
The Company’s approach to modern business environments is designed to drive creativity and productivity for some of the world’s leading technology, entertainment, life science, and business services companies, and we have been consistently recognized for our leadership in sustainability and building operations.
Our approach to modern business environments is designed to drive creativity and productivity for some of the world’s leading technology, media, life science, and business services companies and we have been consistently recognized for our leadership in sustainability and building operations.
Our board of directors, through the Corporate Social Responsibility and Sustainability Committee (the “CSR&S Committee”) in conjunction with management, currently oversee and advance the Company’s corporate social responsibility and sustainability initiatives. The CSR&S Committee recognizes that community engagement and sustainable operations benefit our investors, tenants, and other stakeholders and are key to preserving our Company’s value and credibility.
Our Board of Directors, through the Corporate Social Responsibility and Sustainability Committee (the “CSR&S Committee”) in conjunction with management, currently oversee and advance our corporate social responsibility and sustainability initiatives. Our Board of Directors and management recognize that community engagement and sustainable operations benefit our investors, tenants, and other stakeholders and are key to preserving our value and credibility.
For further discussion of the potential impact of competitive conditions on our business, see “Item 1A. Risk Factors.” Segment and Geographic Financial Information During 2024 and 2023, we had one reportable segment. See Note 26 “Segments” to our consolidated financial statements included in this report for information regarding our reportable segment. For information, see “Item 7.
For further discussion of the potential impact of competitive conditions on our business, see “Item 1A. Risk Factors.” Segment and Geographic Financial Information During 2025 and 2024, we had one reportable segment. See Note 23 “Segments” to our consolidated financial statements included in this report for information regarding our reportable segment.
We execute on our development and redevelopment strategies by: • developing or redeveloping assets in highly populated, amenity rich, supply-constrained locations that are attractive to a broad array of tenants; • being the premier provider of modern and collaborative office, life science, and mixed-use projects on the West Coast and in Austin, Texas, with a focus on design and environment; • maintaining a disciplined approach and commencing development only when appropriate based on market conditions, focusing on pre-leasing, developing in stages / phasing, and cost control; • self-funding our development and redevelopment activities primarily through internally generated free cash flows and/or selective disposition activity; We may engage in the additional development and redevelopment of office, life science, and mixed-use properties when market conditions support a favorable risk-adjusted return on such projects.
We execute on our development and redevelopment strategies by: • developing or redeveloping assets in highly populated, amenity rich, supply-constrained locations that are attractive to a broad array of tenants; 5 • maintaining a disciplined approach and commencing development only when appropriate based on market conditions, focusing on pre-leasing, developing in stages / phasing, and cost control; and • self-funding our development and redevelopment activities primarily through internally generated free cash flows and/or selective disposition activity; We may engage in the additional development and redevelopment of office, life science, and mixed-use properties when market conditions support a favorable risk-adjusted return on such projects.
Our telephone number at that location is (310) 481-8400. Our website is www.kilroyrealty.com. The information found on, or otherwise accessible through, our website is not incorporated into, and does not form a part of, this annual report on Form 10-K or any other report or document we file with or furnish to the SEC.
The information found on, or otherwise accessible through, our website is not incorporated into, and does not form a part of, this annual report on Form 10-K or any other report or document we file with or furnish to the SEC.
Annualized base rental revenue includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue.
Annualized base rental revenue is calculated as the annualized monthly contractual rents from existing tenants in occupancy, including the impact of straight-lining rent escalations and the amortization of free rent periods and excluding the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below-market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue.
Our stabilized portfolio of operating properties was comprised of the following properties at December 31, 2024: Number of Buildings Rentable Square Feet Number of Tenants Percentage Occupied (1) Stabilized Office Properties (2) 123 17,142,721 428 82.8 % ________________________ (1) Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements.
Our stabilized portfolio of operating properties was comprised of the following at December 31, 2025: Number of Buildings Rentable Square Feet Number of Tenants Percentage Occupied (1) Stabilized Office Properties (2) 121 16,292,164 438 81.6 % ________________________ (1) Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements.
We believe that a number of strategies will enable us to continue to achieve our objectives of long-term sustainable growth in Net Operating Income (defined below) and FFO (defined below), and the maximization of long-term stockholder value, including: • Operating strategies • Development and redevelopment strategies • Capital recycling strategies • Financing strategies • Sustainability strategies “Net Operating Income” is defined as consolidated operating revenues (rental income and other property income) less consolidated operating expenses (property expenses, real estate taxes and ground leases).
We believe that a number of strategies will enable us to continue to achieve our objectives of long-term sustainable growth in Net Operating Income (defined below), FFO (defined below), and the maximization of long-term stockholder value, including: • Operating strategies; • Capital recycling strategies; • Development and redevelopment strategies; • Financing strategies; and • Sustainability strategies.
Our financing strategies include: • maintaining financial flexibility, including a significant unencumbered asset base; • maximizing our ability to access a variety of public and private capital sources; • maintaining a staggered debt maturity schedule to limit risk exposure at any particular point in the capital and credit market cycles; • completing financing in advance of capital needs; • managing interest rate exposure by primarily financing on a fixed-rate basis; and • maintaining an investment grade credit rating. 8 We utilize multiple sources of capital, including borrowings under our unsecured revolving credit facility and our unsecured term loan facility, proceeds from the issuance of public or private debt or equity securities, and other bank and/or institutional borrowings, and our capital recycling program.
Our financing strategies include: • maintaining financial flexibility, including a significant unencumbered asset base; • maximizing our access to a variety of public and private capital sources; • maintaining a staggered debt maturity schedule to limit risk exposure at any particular point in the capital and credit market cycles; • completing financing in advance of capital needs; • managing interest rate exposure by primarily financing on a fixed-rate basis; and • maintaining an investment grade credit rating.
Number of Properties Number of Units 2024 Average Occupancy Stabilized Residential Properties 3 1,001 92.5 % Our stabilized portfolio includes all of our properties with the exception of development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, undeveloped land, and real estate assets held for sale.
Our stabilized portfolio includes all of our properties with the exception of development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, undeveloped land, and real estate assets held for sale, if any.
The remaining approximate 1.0% common limited partnership interest in the Operating Partnership as of December 31, 2024 was owned by non-affiliated investors and a former executive officer and director. With the exception of the Operating Partnership and our consolidated property partnerships, all of our subsidiaries are wholly-owned.
The remaining approximate 0.9% common limited partnership interest in the Operating Partnership as of December 31, 2025 was owned by non-affiliated investors. With the exception of the Operating Partnership and property partnerships that we consolidate, all of our subsidiaries are wholly-owned.
During 2024, across all teams and regions, employees participated in various training and developmental opportunities, including virtual workshops, self-paced training, in-person sessions, “lunch and learns,” online webinars, and conferences. We also conducted annual competency-based performance assessments and talent development plans for all employees. Employee Health and Wellness.
During 2025, across all teams and regions, employees participated in various training and developmental experiences, including virtual workshops, self-paced training, in-person sessions, online webinars, and conferences. We also conducted annual goal setting, talent development, and performance assessment processes for all employees. Employee Health, Wellness, and Compensation.
As a result of our commitment to sustainability, we have consistently received high rankings in sustainability performance by the Global Real Estate Sustainability Benchmark (“GRESB”). In 2024, we were proud to earn the highly competitive GRESB 5 Star designation for both our standing assets and development portfolio. We have been recognized with the U.S.
As a result of our commitment to sustainability, we have consistently received high rankings in sustainability performance by the Global Real Estate Sustainability Benchmark (“GRESB”). In 2025, we were proud to earn the highly competitive GRESB 5 Star designation for standing investments, and to be named the Regional Sector Leader in the Americas for development (technology/science).
Our approach is designed to, among other things, attract, retain, develop, and incentivize talented and experienced individuals in the highly competitive employment and commercial real estate markets in which we operate. Several of our human capital development initiatives include the following: Talent Acquisition and Retention. We are committed to fostering a performance-based culture.
Our approach is designed to attract, retain, develop, and incentivize talented and experienced individuals in the highly competitive employment and commercial real estate markets in which we operate. Our human capital development initiatives include the following: Training and Education.
As of December 31, 2024, all of our properties and development and redevelopment projects, and all of our business was conducted in the state of California, with the exception of ten stabilized office properties and one future development project located in the state of Washington, and one stabilized office property and one future 5 development project located in Austin, Texas.
As of December 31, 2025, all of our properties and development and redevelopment projects were owned and all of our business was conducted in the state of California with the exception of ten stabilized office properties and one future development project located in the state of Washington, and one stabilized office property and one future development project located in Austin, Texas. 7 Human Capital Resources As of December 31, 2025, we had 241 employees, of which 52% were female and 43% were ethnically diverse.
Carter as a member of our Board, resulting in 12.5% of our directors being racially or ethnically diverse. 10 Training and Education. We support the continual growth and development of our employees through various training and education programs throughout their tenure at the Company, offering a portfolio of learning experiences in various modalities to elevate their knowledge, skills, and abilities.
We support the continuous growth and development of our employees through various training and education programs throughout their tenure at the Company, offering a portfolio of learning experiences to elevate their knowledge, skills, and abilities.
Our annual sustainability report includes additional detail on our carbon neutral operations strategy, other voluntary sustainability goals, as well as portfolio-wide energy, carbon, water, and waste data which are subject to a limited assurance process conducted by an independent third party. 9 Significant Tenants As of December 31, 2024, our 20 largest tenants in terms of annualized base rental revenues represented approximately 53.6% of our total annualized base rental revenues, defined as annualized monthly contractual rents from existing tenants as of December 31, 2024.
Our annual sustainability report includes additional detail on our carbon neutral operations strategy, other voluntary sustainability goals, as well as portfolio-wide energy, carbon, water, and waste data which are subject to a limited assurance process conducted by an independent third party.
Our longstanding leadership in sustainability in real estate is globally recognized, and our commitment to sustainable operations remains strong. Our vision is a resilient portfolio that minimizes the environmental impact of our buildings while maximizing the health and productivity of our tenants, employees, and communities, while also delivering compelling returns to stockholders.
Our longstanding leadership in sustainability in real estate is globally recognized, and our commitment to sustainable operations remains strong. Our vision is to improve the environmental and social performance of our portfolio and Company, while delivering long term value to our tenants, employees, communities, and shareholders.
For further information on our 20 largest tenants and the composition of our tenant base, see “Item 2.
As of December 31, 2025, our 20 largest tenants in terms of annualized base rental revenues represented approximately 53.7% of our total annualized base rental revenues. For further information on our 20 largest tenants and the composition of our tenant base, see “Item 2.
The Company owns, develops, acquires, and manages real estate assets, consisting primarily of premier properties in Los Angeles, San Diego, the San Francisco Bay Area, Seattle, and Austin, which we believe have strategic advantages and strong barriers to entry. The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”).
We own, develop, acquire, and manage real estate assets, consisting primarily of premier office and life science properties in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin, which are markets we believe have strategic advantages and strong barriers to entry.
The remaining interests in all three property partnerships were owned by unrelated third parties. We own our interests in all of our real estate assets through the Operating Partnership and generally conduct substantially all of our operations through the Operating Partnership, of which we owned an approximate 99.0% common general partnership interest as of December 31, 2024.
The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). We own our interests in all of our real estate assets through the Operating Partnership and conduct substantially all of our operations through the Operating Partnership, of which we owned an approximate 99.1% common general partnership interest as of December 31, 2025.
We manage our properties to offer the maximum degree of utility and operational efficiency to our tenants. Reducing energy use year over year is an ongoing aspect of our operational strategy.
We have also been included on Newsweek’s list of America’s Most Responsible Companies since 2020, and in 2024, we were awarded the Green Lease Leader of the Decade award. We manage our properties to offer the maximum degree of utility and operational efficiency to our tenants. Reducing energy use year over year is an ongoing aspect of our operational strategy.
Our stabilized portfolio also excludes our future development pipeline, which, as of December 31, 2024, was comprised of eight future development sites, representing approximately 64 gross acres of undeveloped land.
Our stabilized portfolio also excludes our future development pipeline, which, as of December 31, 2025, was comprised of eight potential future development sites. 4 Business and Growth Strategies Growth Strategies .
Investors and others can receive notifications of new information posted on our investor relations website in real time by signing up for email alerts.
Investors and others can receive notifications of new information posted on our investor relations website in real time by signing up for email alerts. 9 SUMMARY RISK FACTORS The following section sets forth a summary of material factors that may adversely affect our business and operations. For a more extensive discussion of these factors, see “1A.
We expect that our significant working relationships with tenants, municipalities, and landowners on the West Coast and in Austin, Texas will give us further access to additional opportunities in the future. Capital Recycling Strategies. We believe we are well-positioned to acquire and/or dispose of properties due to our extensive experience and proven track record of capital allocation.
We expect that our significant working relationships with tenants, municipalities, and landowners on the West Coast and in Austin, Texas will give us further access to additional opportunities in the future. Financing Strategies . Our financing policies and objectives are determined by our Board of Directors. Our goal is to maintain significant liquidity and a conservative leverage ratio.
As of December 31, 2024, the following properties were excluded from our stabilized portfolio: Number of Properties/Projects Estimated Rentable Square Feet (1) In-process redevelopment projects - tenant improvement 2 100,000 In-process development projects - under construction 1 875,000 ________________________ (1) Estimated rentable square feet upon completion.
Number of Properties Number of Units 2025 Average Occupancy Stabilized Residential Properties 3 1,001 94.1 % As of December 31, 2025, the following properties and projects were excluded from our stabilized portfolio: Number of Properties / Projects Actual / Estimated Rentable Square Feet (1) Properties held for sale (2) 1 427,764 In-process development project - tenant improvement 1 871,738 ________________________ (1) For the property classified as held for sale, represents actual rentable square feet and consists of three buildings.
We are actively pursuing LEED Gold certification for one approximately 875,000 square foot office and life science project under construction. We identify climate change as a risk to our Company, its tenants, and our other stakeholders.
In 2025, we completed two LEED Gold certifications covering over 900,000 square feet of development projects. We identify climate change as a risk to our Company, its tenants, and our other stakeholders.
Available Information; Website Disclosure; Corporate Governance Documents Kilroy Realty Corporation was incorporated in the state of Maryland on September 13, 1996 and Kilroy Realty, L.P. was organized in the state of Delaware on October 2, 1996. Our principal executive offices are located at 12200 W. Olympic Boulevard, Suite 200, Los Angeles, California 90064.
Environmental costs could adversely affect our financial condition, results of operations, cash flows, and ability to meet obligations to security holders. 8 Available Information; Website Disclosure Kilroy Realty Corporation was incorporated in the state of Maryland on September 13, 1996 and Kilroy Realty, L.P. was organized in the state of Delaware on October 2, 1996.
For the second year in a row, our transformed “Month of Service” program delivered a more robust effort dedicated to giving back to the communities in which we operate. The company-wide initiative gave our team enhanced opportunities to connect with local organizations and meaningful causes in the spirit of community enrichment and employee volunteerism.
Strong Communities and Healthy Planet. We are deeply aware that our properties impact the larger community, and we are proud to help them thrive through our volunteerism and philanthropy initiatives. For the third year in a row, our transformed “Month of Service” program delivered a robust and intentional effort dedicated to give back to the communities in which we operate.
Over 152 employees assisted 18 organizations, dedicating more than 1,200 hours, a 17% increase in number of volunteer hours provided versus 2023. Environmental Regulations and Potential Liabilities Government Regulations Relating to the Environment.
The company-wide initiatives provided our employees with opportunities to connect with local organizations and meaningful causes in the spirit of community enrichment and volunteerism. Over 145 employees assisted 13 organizations, dedicating more than 1,200 hours. Environmental Regulations and Potential Liabilities Existing Conditions at Our Properties.
As of December 31, 2024, other than routine cleaning materials and chemicals used in routine office operations, approximately 1-2% of our tenants handled hazardous substances and/or wastes on approximately 4-5% of the aggregate square footage of our properties as part of their business operations. These tenants are primarily involved in the life sciences business.
However, unknown or future conditions, regulatory changes, or third-party actions could result in additional liabilities. Use of Hazardous Materials by Tenants. Some tenants, primarily in life sciences, handle hazardous substances (e.g., diesel fuel, lab chemicals) on about 1-2% of the aggregate square footage of our stabilized properties as part of their business operations.
Removed
We own our interests in all of our real estate assets through Kilroy Realty, L.P. (the “Operating Partnership”) and generally conduct substantially all of our operations through the Operating Partnership.
Added
For the in-process development project in the tenant improvement phase, represents estimated rentable square feet upon completion. (2) See Note 4 “Dispositions and Held For Sale” to our consolidated financial statements included in this report for additional information.
Removed
We define redevelopment properties as those properties for which we expect to spend significant development and construction costs pursuant to a formal plan to change its use, the intended result of which is a higher economic return on the property.
Added
Net Operating Income (“NOI”) is defined as consolidated operating revenues (rental income and other property income) less consolidated operating expenses (property expenses, real estate taxes and ground leases).
Removed
We define a property in the tenant improvement phase as a development or redevelopment property where the project has reached “cold shell condition” and is ready for tenant improvements, which may require additional major base building modifications before being placed in service.
Added
Capital Recycling Strategies. We believe we are well-positioned to acquire and/or dispose of properties due to our extensive experience and proven track record of capital allocation.
Removed
Projects in the tenant improvement phase are moved into our stabilized portfolio once the project reaches the earlier of 95% occupancy or one year from the date of the cessation of major base building construction activities.
Added
Development and Redevelopment Strategies. We and our predecessors have developed commercial real estate on the West Coast since 1947.
Removed
Costs capitalized to construction in progress for development and redevelopment properties are transferred to land and improvements, buildings and improvements, and deferred leasing costs on our consolidated balance sheets as the projects or phases of projects are placed in service. We did not have any properties or undeveloped land held for sale at December 31, 2024.
Added
We utilize multiple sources of capital, including net cash flows from operations, borrowings under our unsecured revolving credit facility and our unsecured term loan facility, proceeds from the issuance of public or private debt or equity securities, other bank and/or institutional borrowings, and our capital recycling program. Sustainability Strategies.
Removed
All of our properties and development and redevelopment projects are 100% owned, excluding four office properties owned by three consolidated property partnerships. Two of the three consolidated property partnerships, 100 First Street Member, LLC (“100 First LLC”) and 303 Second Street Member, LLC (“303 Second LLC”), each owned one office property in San Francisco, California through subsidiary REITs.
Added
We maintain a longstanding relationship with the U.S. EPA ENERGY STAR® Program, and, as of December 31, 2025, we have achieved the most ENERGY STAR NextGen certifications of any building owner following the launch of this new certification program in 2024. We are listed on the U.S. EPA’s National Top 100 green power users.
Removed
As of December 31, 2024, the Company owned a 56% common equity interest in both 100 First LLC and 303 Second LLC. The third consolidated property partnership, Redwood City Partners, LLC (“Redwood LLC”), owned two office properties in Redwood City, California. As of December 31, 2024, the Company owned an approximate 93% common equity interest in Redwood LLC.
Added
Significant Tenants Our modern business environments foster creativity and productivity for top global technology, life science and healthcare, and media companies.
Removed
The following documents relating to corporate governance are also available on our website under “Investors —Overview —Governance Documents” and available in print to any security holder upon request: • Corporate Governance Guidelines; • Code of Business Conduct and Ethics; • Policies and Procedures Concerning Consideration of Director Candidates; • Audit Committee Charter; • Executive Compensation Committee Charter; • Nominating / Corporate Governance Committee Charter; and • Corporate Social Responsibility and Sustainability Committee Charter. 6 You may request copies of any of these documents by writing to: Attention: Investor Relations Kilroy Realty Corporation 12200 West Olympic Boulevard, Suite 200 Los Angeles, California 90064 We intend to disclose on our website under “Investors —Overview —Governance Documents” any amendment to, or waiver of, any provisions of our Code of Business Conduct and Ethics applicable to the directors and/or officers of the Company that would otherwise be required to be disclosed under the rules of the Securities and Exchange Commission or the New York Stock Exchange.
Added
Technology companies accounted for 51% of our office portfolio annualized base rental revenues as of December 31, 2025, and this category spans a wide array of sectors such as software, social media, hardware, cloud computing, internet media, and technology services.
Removed
We and our predecessors have developed office properties primarily located in California since 1947. As of December 31, 2024, we had two redevelopment projects in the tenant improvement phase totaling approximately 100,000 square feet and one development project under construction totaling approximately 875,000 square feet of office and life science space.
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We conduct Phase I environmental site assessments, following American Society for Testing and Materials (“ASTM”) standards, on all properties before acquisition and update them as needed. These assessments typically include historical and public records reviews, visual inspections, and written reports, but generally exclude subsurface testing unless recommended. Where asbestos-containing materials are identified or suspected, we implement operations and maintenance plans.
Removed
Our future development pipeline was comprised of eight potential development sites representing approximately 64 gross acres of undeveloped land on which we believe could develop over 6.0 million square feet of office, life science, residential, and retail space.
Added
Some properties have historical contamination from prior uses, such as underground storage tanks or hazardous waste disposal. Remediation may be required by us or may have been performed by prior owners.
Removed
Financing Strategies . Our financing policies and objectives are determined by our board of directors. Our goal is to maintain significant liquidity and a conservative leverage ratio.
Added
As of December 31, 2025, we have accrued approximately $70.0 million in environmental remediation liabilities for certain development projects, covering costs such as soil and groundwater remediation and closure activities. Actual costs may vary due to site conditions and project changes. Other than these accrued liabilities, we are not aware of material environmental liabilities.
Removed
There can be no assurance that we will be able to obtain capital as needed on terms favorable to us or at all. (See the discussion under the caption “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations —Factors That May Influence Future Results of Operations” and “Item 1A. Risk Factors.”) Sustainability Strategies.
Added
Leases require compliance with environmental laws and indemnification for related liabilities. We are not aware of any material noncompliance or claims related to tenant activities. Costs and Insurance. We may be liable for remediation costs under environmental laws, regardless of fault.
Removed
EPA ENERGY STAR ® Partner of the Year Sustained Excellence Award for the last nine years, and the U.S. EPA’s National Top 100 list of largest green power users. We have also been included on Newsweek’s list of America’s Most Responsible Companies since 2020, and in 2024 Kilroy was awarded the Green Lease Leader of the Decade award.
Added
We maintain environmental insurance and may obtain indemnities or holdbacks in transactions, but coverage may not be sufficient to address all liabilities.
Removed
Management’s Discussion and Analysis of Financial Condition and Results of Operations —Results of Operations.” As of December 31, 2024, all of our properties and development and redevelopment projects were owned and all of our business was conducted in the state of California with the exception of ten stabilized office properties and one future development project located in the state of Washington and one stabilized office property and one future development project located in Austin, Texas.
Added
Our principal executive offices are located at 12200 W. Olympic Boulevard, Suite 200, Los Angeles, California 90064. Our telephone number at that location is (310) 481-8400. Our website is www.kilroyrealty.com.
Removed
As of December 31, 2024, all of our properties and development and redevelopment projects were 100% owned, excluding four office properties owned by three consolidated property partnerships. Human Capital Resources As of December 31, 2024, we employed 229 people through the Operating Partnership.
Removed
As a result, we focus on recruiting and retaining talent based on merit without discrimination on the basis of any legally protected characteristic. We strive to cultivate a culture of engagement and inclusion, and we believe this commitment will allow us to attract and retain a highly qualified workforce to better serve our stakeholders.
Removed
To emphasize this commitment, we have developed programming to promote workplace diversity and inclusion, and we continue to require mandatory unconscious bias training for all employees. As of December 31, 2024, our workforce was 56% female and 46% was ethnically diverse. In December 2023, we announced the appointment of Angela M.
Removed
Aman as our new Chief Executive Officer and a director on our Board, effective January 22, 2024. Following her appointment, three of our eight directors (or 38%) are women. In addition, in May 2024, we announced the appointment of Daryl J.
Removed
Our offerings include a medical HDHP and two-PPO plans, dental, and vision, with over 90% of the premiums absorbed by the Company. Employees have the option to participate in an HSA with a generous Company contribution, and we offer medical FSA and dependent care FSA options.
Removed
Our package also includes Company paid group LTD, Life & AD&D, with voluntary employee paid buy-up options. We periodically conduct wellness surveys to help us better tailor our employee health and wellness programs and, during 2024, we added a new fitness reimbursement benefit meant to offset the costs associated with a gym membership or fitness class participation.
Removed
Our enhanced Employee Assistance Program helps support mental health and wellness and we continue to focus on providing a variety of programming in this area.
Removed
In addition to offering a 401(k) plan with matching contributions and immediate vesting after 90-days of employment, in 2024, we focused on employee financial wellness by offering a variety of educational events, web workshops, and financial tips, all aimed at helping our employees improve their overall financial well-being. Competitive Benefits and Compensation.
Removed
While many companies leverage a mix of competitive salaries and ancillary benefits to attract and retain their people, we have gone beyond those traditional structures and placed more emphasis on offering an expanded comprehensive benefits program as noted above.
Removed
Additional benefits include enhanced paid pregnancy and parental leave benefits, parental leave coaching, and well-being programming and activities, coordinated by the Company, that align with our core values of Belong, Connect, and Progress. Strong Communities and Healthy Planet.
Removed
We are deeply aware that our buildings are part of the larger community and that we thrive when the communities around us thrive. We are proud to make these communities better places to live and work through our volunteerism and philanthropy initiatives.
Removed
Many laws and governmental regulations relating to the environment are applicable to our properties, and changes in these laws and regulations, or their interpretation by agencies and the courts, occur frequently and may adversely affect us. Existing conditions at some of our properties .
Removed
Independent environmental consultants have conducted Phase I or similar environmental site assessments on all of our properties. We generally obtain these assessments prior to the acquisition of a property and may later update them as required for subsequent financing of the property, if a property is slated for disposition, or as requested by a tenant.
Removed
Consultants are required to perform Phase I assessments to American Society for Testing and Materials standards then-existing for Phase I site assessments and typically include a historical review, a public records review, a visual inspection of the surveyed site, and the issuance of a written report.
Removed
These assessments do not generally include any soil or groundwater sampling or subsurface investigations; however, if a Phase I does recommend that soil or groundwater samples be taken or other subsurface investigations take place, we generally perform such recommended actions.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

117 edited+10 added−38 removed159 unchanged
Biggest changeHowever, in the future, if events such as these (or other disruptions involving our or third-party IT networks and related systems) occur, or are perceived to occur, this could, among other things: • result in unauthorized access to, destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information of ours or others, including personally identifiable and account information; • result in disclosure of information that could be used to compete against us or for disruptive, destructive, or otherwise harmful purposes and outcomes; • result in unauthorized access to or changes to our financial accounting and reporting systems and related data; • result in the theft of funds; • result in our inability to maintain building systems relied on by our tenants; • require significant management attention and resources to remedy any damage that results; • subject us to regulatory penalties, private actions or claims for breach of contract, damages, credits, penalties, or terminations of leases or other agreements; • increase our costs of operations; or • damage our reputation among our tenants, investors, and others.
Biggest changeA successful attack or other disruption involving our or third‑party IT or OT systems could, among other things: • result in unauthorized access to, destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information; • compromise the integrity, accuracy or availability of data, including data used in our financial accounting and reporting systems; • disrupt or degrade business operations, including our ability to operate, monitor or maintain building systems relied on by our tenants; • result in business email compromise, fraudulent payment instructions or other financial fraud; • require significant management attention and resources to investigate and remediate; • subject us to regulatory actions, penalties or private litigation; 22 • increase our costs of operations; and/or • harm our reputation among tenants, investors, employees and other stakeholders.
We may be unable to successfully complete and operate acquired, developed, and redeveloped properties, and it is possible that: • we may be unable to lease acquired, developed, or redeveloped properties on lease terms projected at the time of acquisition, development, or redevelopment, or within budgeted timeframes; • the operating expenses at acquired, developed, or redeveloped properties may be greater than projected at the time of acquisition, development, or redevelopment, resulting in our investment being less profitable than we expected; • we may not commence or complete development or redevelopment properties on schedule or within budgeted amounts or at all; • we may not be able to develop or redevelop the estimated square footage and other features of our development and redevelopment properties; • we may suspend development or redevelopment projects after construction has begun due to changes in economic conditions or other factors, and this may result in the write-off of costs, payment of additional costs, or increases in overall costs when the development or redevelopment project is restarted; • we may expend funds on and devote management’s time to acquisition, development, or redevelopment properties that we may not complete and as a result we may lose deposits or fail to recover expenses already incurred; • we may encounter delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, and building, occupancy, and other required governmental permits and authorizations; • we may encounter delays or unforeseen cost increases associated with building materials or construction services resulting from trade tensions, disruptions, tariffs, duties or restrictions, or an outbreak of an epidemic or pandemic; • we may encounter delays, refusals, unforeseen cost increases, and other impairments resulting from third-party litigation; and • we may fail to obtain the financial results expected from properties we acquire, develop, or redevelop.
We may be unable to successfully complete and operate acquired, developed, and redeveloped properties, and it is possible that: • we may be unable to lease acquired, developed, or redeveloped properties on lease terms projected at the time of acquisition, development, or redevelopment, or within budgeted timeframes; • the operating expenses at acquired, developed, or redeveloped properties may be greater than projected at the time of acquisition, development, or redevelopment, resulting in our investment being less profitable than we expected; • we may not commence or complete development or redevelopment properties on schedule or within budgeted amounts or at all; • we may not be able to develop or redevelop the estimated square footage and other features of our development and redevelopment properties; • we may suspend development or redevelopment projects after construction has begun due to changes in economic conditions or other factors, and this may result in the write-off of costs, payment of additional costs, or increases in overall costs when the development or redevelopment project is restarted; 18 • we may expend funds on and devote management’s time to acquisition, development, or redevelopment properties that we may not complete and as a result we may lose deposits or fail to recover expenses already incurred; • we may encounter delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, and building, occupancy, and other required governmental permits and authorizations; • we may encounter delays or unforeseen cost increases associated with building materials or construction services resulting from trade tensions, disruptions, tariffs, duties or restrictions, or an outbreak of an epidemic or pandemic; • we may encounter delays, refusals, unforeseen cost increases, and other impairments resulting from third-party litigation; and • we may fail to obtain the financial results expected from properties we acquire, develop, or redevelop.
If the Company were to lose its REIT status, the Company would face adverse tax consequences that would substantially reduce the funds available for distribution to its stockholders for each of the years involved because: • the Company would not be allowed a deduction for dividends paid to its stockholders in computing the Company’s taxable income and would be subject to regular U.S. federal corporate income tax; • the Company could be subject to increased state and local taxes; • the Company could be subject to the one percent excise tax on stock repurchases imposed by the 2022 Inflation Reduction Act; and • unless entitled to relief under statutory provisions, the Company could not elect to be taxed as a REIT for four taxable years following the year during which the Company was disqualified.
If the Company were to lose its REIT status, the Company would face adverse tax consequences that would substantially reduce the funds available for distribution to its stockholders for each of the years involved because: 28 • the Company would not be allowed a deduction for dividends paid to its stockholders in computing the Company’s taxable income and would be subject to regular U.S. federal corporate income tax; • the Company could be subject to increased state and local taxes; • the Company could be subject to the one percent excise tax on stock repurchases imposed by the 2022 Inflation Reduction Act; and • unless entitled to relief under statutory provisions, the Company could not elect to be taxed as a REIT for four taxable years following the year during which the Company was disqualified.
Events and conditions applicable to owners and operators of real estate that are beyond our control and could impact our economic performance and the value of our real estate assets may include: • local oversupply or reduction in demand for office, mixed-use, or other commercial space, which may result in decreasing rental rates and greater concessions to tenants; • inability to collect rent from tenants; • vacancies or inability to rent space on favorable terms or at all; • inability to finance property development and acquisitions on favorable terms or at all; • increased operating costs, including insurance premiums, utilities, and real estate taxes; • costs of complying with changes in governmental regulations; • the relative illiquidity of real estate investments; • declines in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing; • changing submarket demographics; • changes in space utilization by our tenants due to technology, economic conditions, and business culture, including a shift away from in-person work environments to flexible work arrangements and remote work; 19 • the development of harmful mold or other airborne toxins or contaminants that could damage our properties or expose us to third-party liabilities; and • property damage resulting from seismic activity or other natural disasters.
Events and conditions applicable to owners and operators of real estate that are beyond our control and could impact our economic performance and the value of our real estate assets may include: • local oversupply or reduction in demand for office, mixed-use, or other commercial space, which may result in decreasing rental rates and greater concessions to tenants; • inability to collect rent from tenants; • vacancies or inability to rent space on favorable terms or at all; • inability to finance property development and acquisitions on favorable terms or at all; • increased operating costs, including insurance premiums, utilities, and real estate taxes; • costs of complying with changes in governmental regulations; • the relative illiquidity of real estate investments; • declines in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing; • changing submarket demographics; • changes in space utilization by our tenants due to technology, economic conditions, and business culture, including a shift away from in-person work environments to flexible work arrangements and remote work; 14 • the development of harmful mold or other airborne toxins or contaminants that could damage our properties or expose us to third-party liabilities; and • property damage resulting from seismic activity or other natural disasters.
In general, investments in mortgages are subject to several risks, including: • borrowers may fail to make debt service payments or pay the principal when due; • the value of the mortgaged property may be less than the principal amount of the mortgage note securing the property; and • interest rates payable on the mortgages may be lower than our cost for the funds used to acquire these mortgages.
In general, investments in mortgages are subject to several risks, including: • borrowers may fail to make debt service payments or pay the principal when due; • the value of the mortgaged property may be less than the principal amount of the mortgage note securing the property; and 20 • interest rates payable on the mortgages may be lower than our cost for the funds used to acquire these mortgages.
The instruments and agreements governing some of our outstanding indebtedness (including borrowings under the Operating Partnership’s unsecured revolving credit facility, unsecured term loan facility, and note purchase agreements) contain provisions that require us to repurchase for cash or repay that indebtedness under specified circumstances or upon the occurrence of specified events (including upon the acquisition by any person or group of more than a specified percentage of the aggregate voting power of all the Company’s issued and outstanding voting stock, upon certain changes in the composition of a majority of the members of the Company’s board of directors, if the Company or one of its wholly-owned subsidiaries ceases to be the sole general partner of the Operating Partnership, or if the Company ceases to own, directly or indirectly, at least 60% of the voting equity interests in the 30 Operating Partnership), and our future debt agreements and debt securities may contain similar provisions or may require that we repay or repurchase or offer to repurchase for cash the applicable indebtedness under specified circumstances or upon the occurrence of specified changes of control of the Company or the Operating Partnership or other events.
The instruments and agreements governing some of our outstanding indebtedness (including borrowings under the Operating Partnership’s unsecured revolving credit facility, unsecured term loan facility, and note purchase agreements) contain provisions that require us to repurchase for cash or repay that indebtedness under specified circumstances or upon the occurrence of specified events (including upon the acquisition by any person or group of more than a specified percentage of the aggregate voting power of all the Company’s issued and outstanding voting stock, upon certain changes in the composition of a majority of the members of the Company’s Board of Directors, if the Company or one of its wholly-owned subsidiaries ceases to be the sole general partner of the Operating Partnership, or if the Company ceases to own, directly or indirectly, at least 60% of the voting equity interests in the Operating Partnership), and our future debt agreements and debt securities may contain similar provisions or may 24 require that we repay or repurchase or offer to repurchase for cash the applicable indebtedness under specified circumstances or upon the occurrence of specified changes of control of the Company or the Operating Partnership or other events.
In the event that we experience a substantial or comprehensive loss of one of our properties, we may not be able to rebuild such property to its existing specifications. Further, reconstruction or improvement of such property could potentially require significant upgrades to meet zoning and building code requirements or be subject to environmental and other legal restrictions.
In the event that we experience a substantial or comprehensive loss of one of our properties, we may not be able to rebuild such property to its existing 16 specifications. Further, reconstruction or improvement of such property could potentially require significant upgrades to meet zoning and building code requirements or be subject to environmental and other legal restrictions.
Our properties are subject to regulation under federal laws, such as the Americans with Disabilities Act of 1990 (the “ADA”), pursuant to which all public accommodations must meet federal requirements related to access and use by disabled persons, and state and local laws addressing earthquake, fire and life safety requirements.
Our properties are subject to regulation under federal laws, such as the Americans with Disabilities Act 15 of 1990 (the “ADA”), pursuant to which all public accommodations must meet federal requirements related to access and use by disabled persons, and state and local laws addressing earthquake, fire and life safety requirements.
Because of these distribution requirements, the Operating Partnership is required to make distributions to the Company, and we 32 may not be able to fund future capital needs, including any necessary acquisition financing, from operating cash flows. Consequently, management relies on third-party sources of capital to fund our capital needs.
Because of these distribution requirements, the Operating Partnership is required to make distributions to the Company, and we may not be able to fund future capital needs, including any necessary acquisition financing, from operating cash flows. Consequently, management relies on third-party sources of capital to fund our capital needs.
When possible and appropriate, we enter into Section 1031 Exchanges. It is possible that the qualification of a transaction as a Section 1031 Exchange could be successfully challenged and determined to be currently taxable or that we may be unable to identify and complete the acquisition of a suitable replacement property to effect a Section 1031 Exchange.
When possible and appropriate, we enter into Section 1031 Exchanges. It is possible that the qualification of a transaction as a Section 1031 Exchange could be successfully challenged and determined to be currently taxable or that we may be unable to identify and 29 complete the acquisition of a suitable replacement property to effect a Section 1031 Exchange.
If releases from our sites migrate offsite, or if our site redevelopment activities cause or 22 contribute to a migration of hazardous substances, neighbors or others could make claims against us, such as for property damage, personal injury, cost recovery, or natural resources damage.
If releases from our sites migrate offsite, or if our site redevelopment activities cause or contribute to a migration of hazardous substances, neighbors or others could make claims against us, such as for property damage, personal injury, cost recovery, or natural resources damage.
We can provide no assurance that the actual density of our undeveloped land holdings and/or any particular land parcel will be consistent with our potential density estimates. For additional information on our development program, see “Item 7.
We can provide no 19 assurance that the actual density of our undeveloped land holdings and/or any particular land parcel will be consistent with our potential density estimates. For additional information on our development program, see “Item 7.
The Company is required under the Code to distribute at least 90% of its taxable income (subject to certain adjustments and excluding any net capital gain), and the Operating Partnership is required to make distributions to the Company to allow the Company to satisfy these REIT distribution requirements.
The Company is required under the Code to distribute at least 90% of its taxable income (subject to certain adjustments and excluding any net capital gain), and the Operating Partnership is required to make distributions to the Company to allow the Company to 26 satisfy these REIT distribution requirements.
To qualify as a REIT for federal income tax purposes, the Company must continually satisfy tests concerning, among other things, the sources of its income, the nature and diversification of 36 its assets, the amounts it distributes to its stockholders and the ownership of its capital stock.
To qualify as a REIT for federal income tax purposes, the Company must continually satisfy tests concerning, among other things, the sources of its income, the nature and diversification of its assets, the amounts it distributes to its stockholders and the ownership of its capital stock.
If these conditions become more volatile or worsen, our business, results of operations, liquidity and financial condition, and those of our tenants may be adversely affected as a result of the following consequences, among others: • our ability to obtain financing on terms and conditions that we find acceptable, or at all, may be limited, which could reduce our ability to pursue acquisition and development opportunities and refinance existing debt, reduce our returns from our acquisition and development activities, and increase our future interest expense; • the financial condition of our tenants, many of which are technology; life science and healthcare; finance, insurance and real estate; media and professional business, and other service firms, may be adversely affected, which may result in tenant defaults under leases due to bankruptcy, lack of liquidity, operational failures, or for other reasons; • significant job losses in the technology; life science and healthcare; finance, insurance and real estate; media and professional business and other service firm industries may occur, which may decrease demand for our office space, causing market rental rates and property values to be negatively impacted; • reduced values of our properties may limit our ability to dispose of assets at attractive prices or to obtain debt financing secured by our properties and may reduce the availability of unsecured loans; and • one or more lenders under the Operating Partnership’s unsecured revolving credit facility could refuse to fund their financing commitment to us or could fail and we may not be able to replace the financing commitment of any such lenders on favorable terms, or at all.
If these conditions become more volatile or worsen, we and our tenants may be adversely affected as a result of the following consequences, among others: • our ability to obtain financing on terms and conditions that we find acceptable, or at all, may be limited, which could reduce our ability to pursue acquisition and development opportunities and refinance existing debt, reduce our returns from our acquisition and development activities, and increase our future interest expense; • the financial condition of our tenants, many of which are in the technology; life science and healthcare; finance, insurance and real estate; media, professional business and other service firm industries, may be adversely affected, which may result in tenant defaults under leases due to bankruptcy, lack of liquidity, operational failures, or for other reasons; • significant job losses in the technology; life science and healthcare; finance, insurance and real estate; media and professional business and other service firm industries may occur, which may decrease demand for our office space, causing market rental rates and property values to be negatively impacted; • reduced values of our properties may limit our ability to dispose of assets at attractive prices or to obtain debt financing secured by our properties and may reduce the availability of unsecured loans; and • one or more lenders under the Operating Partnership’s unsecured revolving credit facility could refuse to fund their financing commitment to us or could fail and we may not be able to replace the financing commitment of any such lenders on favorable terms, or at all.
We have not requested and do not plan to request a ruling from the Internal Revenue Service (“IRS”) regarding the Company’s qualification as a REIT. 35 To maintain the Company’s REIT status, we may be forced to borrow funds during unfavorable market conditions.
We have not requested and do not plan to request a ruling from the Internal Revenue Service (“IRS”) regarding the Company’s qualification as a REIT. To maintain the Company’s REIT status, we may be forced to borrow funds during unfavorable market conditions.
If we do not partner with such a developer, or if we choose to develop the space ourselves, we would be exposed to 24 specific risks associated with the development and ownership of non-office/life science real estate.
If we do not partner with such a developer, or if we choose to develop the space ourselves, we would be exposed to specific risks associated with the development and ownership of non-office/life science real estate.
We are susceptible to adverse developments in the economic and regulatory environments of California, Seattle, Washington, and Austin, Texas (such as periods of economic slowdown or recession, business layoffs or downsizing, industry slowdowns, relocations of businesses, increases in real estate and other taxes, costs of complying with governmental regulations or increased regulation, and other factors), as well as adverse weather conditions and natural disasters that occur in those areas (such as earthquakes, wind, landslides, droughts, fires, floods, and other events).
We are susceptible to adverse developments in the economic and regulatory environments of California, the Seattle, Washington Metropolitan Area, and the Austin, Texas Metropolitan Area (such as periods of economic slowdown or recession, business layoffs or downsizing, industry slowdowns, relocations of businesses, increases in real estate and other taxes, costs of complying with governmental regulations or increased regulation, and other factors), as well as adverse weather conditions and natural disasters that occur in those areas (such as earthquakes, wind, landslides, droughts, fires, floods, and other events).
If anyone acquires shares in excess of any ownership limits without a waiver, the transfer to the transferee will be void with respect to the excess shares, the excess shares will be automatically transferred to a trust for the benefit of a qualified charitable organization, and the purported transferee or owner will have no rights with respect to those excess shares. 33 The Company’s charter contains provisions that may delay, deter, or prevent a change of control transaction.
If anyone acquires shares in excess of any ownership limits without a waiver, the transfer to the transferee will be void with respect to the excess shares, the excess shares will be automatically transferred to a trust for the benefit of a qualified charitable organization, and the purported transferee or owner will have no rights with respect to those excess shares. 27 The Company’s charter contains provisions that may delay, deter, or prevent a change of control transaction.
The agreements governing the unsecured revolving credit facility and the note purchase agreements provide that, if the Operating Partnership fails to pay any principal of, or interest on, any borrowings or other amounts payable under such agreement when due or during any other event of default under such revolving credit facility and the unsecured private placement notes, the Operating Partnership may make only those partnership distributions that result in distributions to us in an amount sufficient to permit us to make distributions to our stockholders that we reasonably believe are necessary to (a) maintain our qualification as a REIT for federal and state income tax purposes and (b) avoid the payment of federal or state income or excise tax.
The agreements governing the unsecured revolving credit facility and the note purchase agreements provide that, if the Operating Partnership fails to pay any principal of, or interest on, any borrowings or other amounts payable under such agreement when due or during any other event of default under such revolving credit facility and the unsecured private placement notes, the Operating Partnership may make only those partnership distributions that result in distributions to us in an amount sufficient to permit us to make distributions to our stockholders that we reasonably believe are necessary to (i) maintain our qualification as a REIT for federal and state income tax purposes and (ii) avoid the payment of federal or state income or excise tax.
Unknown or unremediated contamination or compliance with existing or new environmental or health and safety laws and regulations could require us to incur costs or liabilities that could be material. See “Item 1. Business —Environmental Regulations and Potential Liabilities” and Note 19 “Commitments and Contingencies” to our consolidated financial statements included in this report.
Unknown or unremediated contamination or compliance with existing or new environmental or 17 health and safety laws and regulations could require us to incur costs or liabilities that could be material. See “Item 1. Business —Environmental Regulations and Potential Liabilities” and Note 17 “Commitments and Contingencies” to our consolidated financial statements included in this report.
As of December 31, 2024, we owned fourteen office buildings located on various land parcels and in various regions, which we lease individually on a long-term basis, and we may in the future invest in additional properties that are subject to ground leases or other similar restrictive arrangements.
As of December 31, 2025, we owned fourteen office buildings located on various land parcels and in various regions, which we lease individually on a long-term basis, and we may in the future invest in additional properties that are subject to ground leases or other similar restrictive arrangements.
Other states have passed laws that will subject us to additional compliance and operational costs that will go into effect in 2025 and beyond, and other states are considering similar legislation regarding the collection, sharing, use, and other processing of information related to individuals for marketing purposes or otherwise.
Other states have passed laws that will subject us to additional compliance and operational costs that will go into effect in 2026 and beyond, and other states are considering similar legislation regarding the collection, sharing, use, and other processing of information related to individuals for marketing purposes or otherwise.
We caution you not to place undue reliance on the potential density estimates for our undeveloped land holdings and/or any particular land parcel because they are based solely on our estimates, using data currently available to us, and our business plans as of December 31, 2024.
We caution you not to place undue reliance on the potential density estimates for our undeveloped land holdings and/or any particular land parcel because they are based solely on our estimates, using data currently available to us, and our business plans as of December 31, 2025.
As of December 31, 2024, there was no amount outstanding under our unsecured revolving credit facility and $200.0 million was outstanding under our unsecured term loan facility. However, we may borrow on the unsecured revolving credit facility, borrow additional amounts under the accordion feature of the unsecured term loan facility, or incur additional variable rate debt in the future.
As of December 31, 2025, there was no amount outstanding under our unsecured revolving credit facility and $200.0 million was outstanding under our unsecured term loan facility. However, we may borrow on the unsecured revolving credit facility, borrow additional amounts under the accordion feature of the unsecured term loan facility, or incur additional variable rate debt in the future.
In addition to the 100 First LLC and 303 Second LLC strategic ventures and the Redwood City Partners, LLC venture, we may continue to co-invest in the future with third parties through partnerships, joint ventures, or other entities, or through acquiring non-controlling interests in, or sharing responsibility for, managing the affairs of a property, partnership, joint venture, or other entity, which may subject us to risks that may not be present with other methods of ownership, including the following: • we would not be able to exercise sole decision-making authority regarding the property, partnership, joint venture, or other entity, which would allow for impasses on decisions that could restrict our ability to sell or transfer our interests in such entity or such entity’s ability to transfer or sell its assets; • partners or co-venturers might become bankrupt or fail to fund their share of required capital contributions, which could delay construction or development of a property or increase our financial commitment to the partnership or joint venture; • partners or co-venturers may pursue economic or other business interests, policies or objectives that are competitive or inconsistent with ours; • if we become a limited partner or non-managing member in any partnership or limited liability company, and such entity takes or expects to take actions that could jeopardize our status as a REIT or require us to pay tax, we may be forced to dispose of our interest in such entity; • disputes between us and partners or co-venturers may result in litigation or arbitration that would increase our expenses and prevent our officers and/or directors from focusing their time and effort on our business; and • we may, in certain circumstances, be liable for the actions of our third-party partners or co-venturers.
In addition to the 100 First Street Member, LLC (“100 First LLC”) and 303 Second Member LLC (“303 Second LLC”) strategic ventures, and the Redwood City Partners, LLC (“Redwood LLC”) venture (together, the “Consolidated Property Partnerships”), we may continue to co-invest in the future with third parties through partnerships, joint ventures, or other entities, or through acquiring non-controlling interests in, or sharing responsibility for, managing the affairs of a property, partnership, joint venture, or other entity, which may subject us to risks that may not be present with other methods of ownership, including the following: • we would not be able to exercise sole decision-making authority regarding the property, partnership, joint venture, or other entity, which would allow for impasses on decisions that could restrict our ability to sell or transfer our interests in such entity or such entity’s ability to transfer or sell its assets; • partners or co-venturers might become bankrupt or fail to fund their share of required capital contributions, which could delay construction or development of a property or increase our financial commitment to the partnership or joint venture; • partners or co-venturers may pursue economic or other business interests, policies or objectives that are competitive or inconsistent with ours; • if we become a limited partner or non-managing member in any partnership or limited liability company, and such entity takes or expects to take actions that could jeopardize our status as a REIT or require us to pay tax, we may be forced to dispose of our interest in such entity; • disputes between us and partners or co-venturers may result in litigation or arbitration that would increase our expenses and prevent our officers and/or directors from focusing their time and effort on our business; and • we may, in certain circumstances, be liable for the actions of our third-party partners or co-venturers.
As of December 31, 2024, we had a $1.1 billion unsecured revolving credit facility and a $200.0 million unsecured term loan facility, each bearing interest at a variable rate on any amount drawn and outstanding.
As of December 31, 2025, we had a $1.1 billion unsecured revolving credit facility and a $200.0 million unsecured term loan facility, each bearing interest at a variable rate on any amount drawn and outstanding.
Also, the law relating to the tax treatment of other entities, or an investment in other entities, could change, making an investment in such other entities more attractive relative to an investment in a REIT. 37 ITEM 1B. UNRESOLVED STAFF COMMENTS None.
Also, the law relating to the tax treatment of other entities, or an investment in other entities, could change, making an investment in such other entities more attractive relative to an investment in a REIT. 30 ITEM 1B. UNRESOLVED STAFF COMMENTS None.
While we historically have acquired, developed, and redeveloped office properties in California and Seattle markets, over the past three years we have acquired properties in Austin, Texas, where we currently have one stabilized office property and one future development project.
While we historically have acquired, developed, and redeveloped office properties in California and Seattle markets, over the past four years we have acquired properties in Austin, Texas, where we currently have one stabilized office property and one future development project.
As of December 31, 2024, we had accrued environmental remediation liabilities of approximately $72.0 million on our consolidated balance sheets in connection with certain of our in-process and future development projects. The accrued environmental remediation liabilities represent the costs we estimate we will incur when we commence development at various development acquisition sites.
As of December 31, 2025, we had accrued environmental remediation liabilities of approximately $70.0 million on our consolidated balance sheets in connection with certain of our in-process and future development projects. The accrued environmental remediation liabilities represent the costs we estimate we will incur when we commence development at various development acquisition sites.
All of our properties are located in California, Seattle, Washington, and Austin, Texas and we may therefore be susceptible to adverse economic conditions and regulations, as well as natural disasters, in those areas.
All of our properties are located in California, the Seattle, Washington Metropolitan Area, and the Austin, Texas Metropolitan Area and we may therefore be susceptible to adverse economic conditions and regulations, as well as natural disasters, in those areas.
We compete with several developers, owners and operators of office, undeveloped land and other commercial real estate, including mixed-use and residential real estate, many of which own properties similar to ours in the same submarkets in which our properties are located but which have lower occupancy rates than our properties.
We compete with several developers, owners and operators of office, sublease space available from our tenants, undeveloped land and other commercial real estate, including mixed-use and residential real estate, many of which own properties similar to ours in the same submarkets in which our properties are located but which have lower occupancy rates than our properties.
Risks Related to Our Organizational Structure Our growth depends on external sources of capital that are outside of our control and the inability to obtain capital on terms that are acceptable to us, or at all, could adversely affect our financial condition and results of operations.
Risks Related to Our Organizational Structure Our growth depends on external sources of capital that are outside of our control and the inability to obtain capital on terms that are acceptable to us, or at all, could adversely affect us.
Higher construction costs could adversely impact our investments in real estate assets and expected yields on our development and redevelopment projects, which may make otherwise lucrative investment opportunities less profitable to us.
These increased construction costs could in turn adversely impact our investments in real estate assets and expected yields on our development and redevelopment projects, which may make otherwise lucrative investment opportunities less profitable to us.
Risks Related to Our Indebtedness We may not be able to meet our debt service obligations. As of December 31, 2024, we had approximately $4.6 billion aggregate principal amount of indebtedness, of which $606.2 million in principal payments, before the consideration of extension options, is expected to be paid during the year ending December 31, 2025.
Risks Related to Our Indebtedness We may not be able to meet our debt service obligations. As of December 31, 2025, we had approximately $4.6 billion aggregate principal amount of indebtedness, of which $601.3 million in principal payments, before the consideration of extension options, is expected to be paid during the year ending December 31, 2026.
Although we believe that our relations with our service providers are good, if disputes with our service providers arise or if workers providing services at our properties engage in a strike or other work stoppage or interruption, we could experience a significant disruption of, or inefficiencies in, our operations or at our properties or incur higher labor costs, which could have a material adverse effect on our business, results of operations, financial condition, and liquidity.
Although we believe that our relations with our service providers are good, if disputes with our service providers arise or if workers providing services at our properties engage in a strike or other work stoppage or interruption, we could experience a significant disruption of, or inefficiencies in, our operations or at our properties or incur higher labor costs, which could have a material adverse effect on us.
As our properties are concentrated in West Coast markets of the United States and in Austin, Texas, should the impact of climate change be severe or occur for lengthy periods of time in such markets, our financial condition and results or operations could be adversely affected.
As our properties are concentrated in West Coast markets of the United States and in Austin, Texas, should the impact of climate change be severe or occur for lengthy periods of time in such markets, we could be adversely affected.
Our total debt at December 31, 2024 represented 49.0% of our total market capitalization (which we define as the aggregate of our long-term debt and the market value of the Company’s common stock and the Operating Partnership’s common units of limited partnership interest, or common units, based on the closing price per share of the Company’s common stock as of that date).
Our total debt at December 31, 2025 represented 50.8% of our total market capitalization (which we define as the aggregate of our long-term debt and the market value of the Company’s common stock and the Operating Partnership’s common units of limited partnership interest, or common units, based on the closing price per share of the Company’s common stock as of that date).
However, our organizational documents do not limit the amount or percentage of indebtedness, funded or otherwise, that we may incur. As of December 31, 2024, we had approximately $4.6 billion aggregate principal amount of indebtedness outstanding, which represented 49.0% of our total market capitalization. See “Item 7.
However, our organizational documents do not limit the amount or percentage of indebtedness, funded or otherwise, that we may incur. As of December 31, 2025, we had approximately $4.6 billion aggregate principal amount of indebtedness outstanding, which represented 50.8% of our total market capitalization. See “Item 7.
As of December 31, 2024, as a percentage of our annualized base rental revenue for the stabilized portfolio, 54% of our tenants operated in the technology industry, 17% in the life science and health care industries, 9% in the professional, business, and other services industries, 7% in the media industry, 6% in the finance, insurance, and real estate industries, and 7% in other industries.
As of December 31, 2025, as a percentage of our annualized base rental revenue for the stabilized portfolio, 51% of our tenants operated in the technology industry, 19% in the life science and health care industries, 9% in the professional, business, and other services industries, 7% in the finance, insurance, and real estate industries, 6% in the media industry, and 8% in other industries.
A downgrade in our credit ratings could materially adversely affect our business and financial condition. The credit ratings assigned to the Operating Partnership’s debt securities and any preferred stock we may issue in the future could change based upon, among other things, our results of operations, and financial condition.
The credit ratings assigned to the Operating Partnership’s debt securities and any preferred stock we may issue in the future could change based upon, among other things, our results of operations, and financial condition.
If one or more of these events were to occur in connection with our acquired properties, undeveloped land, or development or redevelopment properties under construction, we could be required to recognize an impairment loss.
If one or more of these events were to occur in connection with our acquired properties, undeveloped land, or development or redevelopment properties under construction, we could be required to recognize an impairment loss. These events could also have an adverse impact on us.
As of December 31, 2024, we had approximately 2.3 million aggregate rentable square feet, or 13.6% of our total stabilized portfolio located on these leased parcels.
As of December 31, 2025, we had approximately 2.3 million aggregate rentable square feet, or 14.3% of our total stabilized portfolio located on these leased parcels.
Any limitation on our ability to make distributions to our 31 stockholders, whether as a result of these provisions in the unsecured revolving credit facility, the unsecured term loan facility, the note purchase agreements or otherwise, could have a material adverse effect on the market value of our common stock.
Any limitation on our ability to make distributions to our stockholders, whether as a result of these provisions in the unsecured revolving credit facility, the unsecured term loan facility, the note purchase agreements or otherwise, could have a material adverse effect on the market value of our common stock. 25 A downgrade in our credit ratings could materially adversely affect us.
As a result, a downturn in an industry in which a significant number of our tenants operate could adversely affect our financial condition, results of operations, and cash flows. We may be unable to renew leases or re-lease available space. Most of our income is derived from the rent earned from our tenants.
As a result, a downturn in an industry in which a significant number of our tenants operate could adversely affect us. We may be unable to renew leases or re-lease available space. Most of our income is derived from the rent earned from our tenants.
Additionally, inflation may have a negative effect on the construction costs necessary to complete our development and redevelopment projects, including, but not limited to, costs of construction materials, labor, and services from third-party contractors and suppliers. We rely on a number of third-party suppliers and contractors to supply raw materials, skilled labor, and services for our construction projects.
Additionally, inflation may have a negative effect on the construction costs necessary to complete our development and redevelopment projects, including, but not limited to, costs of construction materials, labor, and services from third-party contractors and suppliers.
At December 31, 2024, 46% of our properties were leased to tenants on a triple net basis, 27% were leased to tenants on a 16 modified gross basis, 21% of our properties were leased to tenants on a full service gross basis, and 6% of our properties were leased to tenants on a modified net basis, in each case as a percentage of our annualized base rental revenue.
At December 31, 2025, 46% of our properties were leased to tenants on a triple net basis, 26% were leased to tenants on a modified gross basis, 22% of our properties were leased to tenants on a full service gross basis, and 6% of our properties were leased to tenants on a modified net basis, in each case as a percentage of our annualized base rental revenue.
Increases in the amount of debt outstanding would result in an increase in our debt service costs, which could adversely affect cash flows and our ability to pay dividends and distributions to our security holders. Higher leverage also increases the risk of default on our obligations and limits our ability to obtain additional financing in the future.
Increases in the amount of debt outstanding would result in an increase in our debt service costs, which could adversely affect us. Higher leverage also increases the risk of default on our obligations and limits our ability to obtain additional financing in the future.
The actual density of our undeveloped land holdings and/or any particular land parcel may not be consistent with our potential density estimates . As of December 31, 2024, we estimate that our eight future development sites, representing approximately 64 gross acres of undeveloped land, provide more than 6.0 million square feet of potential density.
The actual density of our undeveloped land holdings and/or any particular land parcel may not be consistent with our potential density estimates . As of December 31, 2025, we estimate that our eight potential future development sites could provide approximately 6.0 million square feet of potential density.
Management’s Discussion and Analysis of Financial Condition and Results of Operations —Factors That May Influence Future Results of Operations” and other information contained in this report, should be considered in evaluating us and our business.
The following factors, as well as the factors discussed in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations —Factors That May Influence Future Results of Operations” and other information contained in this report, should be considered in evaluating us and our business.
Risks Related to our Business and Operations Global market, economic, and geopolitical conditions may adversely affect our business, results of operations, liquidity, and financial condition, and those of our tenants. Our business may be adversely affected by global market, economic and geopolitical conditions, including general global economic and political uncertainty and dislocations in the credit markets.
Risks Related to our Business and Operations Global market, economic, and geopolitical conditions may adversely affect us and our tenants. Our business may be adversely affected by global market, economic, and geopolitical conditions, including general global economic and political uncertainty and dislocations in the credit markets.
We face risks associated with compliance with ever evolving federal and state laws relating to the handling of information about individuals, which involves significant expenditure and resources, and any failure by us or our vendors to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect our business, results of operations, and financial condition.
Any of these events could have a material adverse impact on our business We face risks associated with compliance with ever evolving federal and state laws relating to the handling of information about individuals, which involves significant expenditure and resources, and any failure by us or our vendors to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect us.
Our economic performance and the value of our real estate assets and, consequently the market value of the Company’s securities, are subject to the risk that our properties may not generate revenues sufficient to meet our operating expenses or other obligations.
Our economic performance and the value of our real estate assets and, consequently the market value of the Company’s securities, are subject to the risk that our properties may not generate revenues sufficient to meet our operating expenses or other obligations. A deficiency of this nature would adversely impact us.
We could be adversely affected by labor disputes, strikes, or other union job actions. If workers providing services at our properties were to engage in a strike or other work stoppage or interruption, our business, results of operations, financial condition, and liquidity could be materially adversely affected.
We could be adversely affected by labor disputes, strikes, or other union job actions. If workers providing services at our properties were to engage in a strike or other work stoppage or interruption, we could be materially adversely affected.
Any actual or perceived failure to comply with evolving regulatory frameworks around the development and use of AI, machine learning, and automated decision making could adversely affect our business, results of operations, and financial condition.
Any actual or perceived failure to comply with evolving regulatory frameworks around the development and use of AI, machine learning, and automated decision making could adversely affect us.
As of December 31, 2024, 118,046,674 shares of the Company’s common stock were issued and outstanding. 34 As of December 31, 2024, the Company had reserved for future issuance the following shares of common stock: 1,150,574 shares issuable upon the exchange, at the Company’s option, of the Operating Partnership’s common units; approximately 2.6 million shares remained available for grant under our 2006 Incentive Award Plan (see Note 16 “Share-Based and Other Compensation” to our consolidated financial statements included in this report); approximately 0.8 million shares issuable upon settlement of time-based RSUs; and a maximum of 1.4 million shares contingently issuable upon settlement of RSUs subject to the achievement of market and/or performance conditions.
As of December 31, 2025, the Company had reserved for future issuance the following shares of common stock: 1,133,562 shares issuable upon the exchange, at the Company’s option, of the Operating Partnership’s common units; approximately 1.8 million shares remained available for grant under our 2006 Incentive Award Plan (see Note 14 “Share-Based and Other Compensation” to our consolidated financial statements included in this report); approximately 0.7 million shares issuable upon settlement of time-based RSUs; and a maximum of 2.0 million shares contingently issuable upon settlement of RSUs subject to the achievement of market and/or performance conditions.
If substantial reconfiguration of the tenant’s space is required, the tenant may find it more advantageous to relocate than to renew its lease and renovate the existing space. For more information, see “ —We may be unable to renew leases or re-lease available space, ” below.
If substantial reconfiguration of the tenant’s space is required, the tenant may find it more advantageous to relocate than to renew its lease and renovate the existing space. For more information, see “ —We may be unable to renew leases or re-lease available space, ” below. All of these factors could have a material adverse effect us.
In order to maintain the quality of our properties and successfully compete against other properties, we must periodically spend money to maintain, repair, and renovate our properties, which reduces our cash flows.
As a result, we may be adversely affected. In order to maintain the quality of our properties and successfully compete against other properties, we must periodically spend money to maintain, repair, and renovate our properties, which reduces our cash flows.
However, there can be no assurance that our tenants would be able to absorb these expense increases and be able to continue to pay us their portion of operating expenses, capital expenditures, and rent. Also, due to rising costs, our tenants may be unable to continue operating their businesses altogether.
However, there can be no assurance that our tenants would be able to absorb these expense increases and be able to continue to pay us their portion of operating expenses, capital expenditures, and rent.
We had office space representing approximately 17.2% of the total square footage of our stabilized office properties that was not occupied as of December 31, 2024. In addition, leases representing approximately 5.2% and 14.0% of the leased rentable square footage of our properties are scheduled to expire in 2025 and 2026, respectively.
We had office space representing approximately 18.4% of the total square footage of our stabilized office properties that was not occupied as of December 31, 2025. In addition, leases representing approximately 8.0% and 7.7% of the leased rentable square footage of our properties are scheduled to expire in 2026 and 2027, respectively.
Under a triple net lease, the tenants pay their proportionate share of real estate taxes, operating costs, and utility costs. A modified net lease is similar to a triple net lease, except the tenants are obligated to pay their proportionate share of certain operating expenses directly to the service provider.
A modified net lease is similar to a triple net lease, except the tenants are obligated to pay their proportionate share of certain operating expenses directly to the service provider.
For example, in the United States, the Federal Trade Commission, and state regulators enforce a variety of data privacy issues, such as promises made in privacy policies or failures to appropriately protect information about individuals, as unfair or deceptive acts or practices in or affecting commerce in violation of the Federal Trade Commission Act or similar state laws. 28 In addition, many states have adopted new or modified privacy and security laws and regulations that apply to our business.
For example, in the United States, the Federal Trade Commission, and state regulators enforce a variety of data privacy issues, such as promises made in privacy policies or failures to appropriately protect information about individuals, as unfair or deceptive acts or practices in or affecting commerce in violation of the Federal Trade Commission Act or similar state laws.
Our claim against the tenant for unpaid and future rent could be subject to a statutory cap that might be substantially less than the remaining rent actually owed under the lease. Therefore, our claim for unpaid rent would likely not be paid in full.
Our claim against the tenant for unpaid and future rent could be subject to a statutory cap that might be substantially less than the remaining rent actually owed under the lease. Therefore, our claim for unpaid rent would likely not be paid in full. Any losses resulting from the bankruptcy of any of our existing tenants could adversely impact us.
ITEM 1A. RISK FACTORS The following section sets forth material factors that may adversely affect our business and operations. The following factors, as well as the factors discussed in “Item 7.
ITEM 1A. RISK FACTORS The following section sets forth material factors that may adversely affect our business and operations.
In addition, the real property taxes on our properties may increase as our properties are reassessed by taxing authorities or as property tax rates change.
We are required to pay state and local taxes on our properties. In addition, the real property taxes on our properties may increase as our properties are reassessed by taxing authorities or as property tax rates change.
If any of the credit rating agencies that have rated the Operating Partnership’s debt securities or any preferred stock we may issue in the future downgrades or lowers its credit rating, or if any credit rating agency indicates that it has placed any such rating on a so-called “watch list” for a possible downgrading or lowering or otherwise indicates that its outlook for that rating is negative, it could have a material adverse effect on our costs and availability of capital, which could in turn have a material adverse effect on our financial condition, results of operations, cash flows, the trading price of our securities, and our ability to satisfy our debt service obligations and to pay dividends and distributions to our security holders.
If any of the credit rating agencies that have rated the Operating Partnership’s debt securities or any preferred stock we may issue in the future downgrades or lowers its credit rating, or if any credit rating agency indicates that it has placed any such rating on a so-called “watch list” for a possible downgrading or lowering or otherwise indicates that its outlook for that rating is negative, it could have a material adverse effect on our costs and availability of capital, which could in turn have a material adverse effect on us.
Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on co-venturers' financial condition, and disputes between us and our co-venturers, and could expose us to potential liabilities and losses.
Management’s Discussion and Analysis of Financial Condition and Results of Operations —Factors That May Influence Future Results of Operations.” Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on co-venturers' financial condition, and disputes between us and our co-venturers, and could expose us to potential liabilities and losses.
Our common limited partners have limited approval rights, which may prevent us from completing a change of control transaction that may be in the best interests of all our security holders.
If we cannot obtain capital from third-party sources, we may be adversely affected. Our common limited partners have limited approval rights, which may prevent us from completing a change of control transaction that may be in the best interests of all our security holders.
We may also discontinue earthquake insurance on some or all of our properties in the future if the cost of premiums for earthquake insurance exceeds the value of the coverage discounted for the risk of loss.
However, the amount of our earthquake insurance coverage may not be sufficient to cover losses from earthquakes. We may also discontinue earthquake insurance on some or all of our properties in the future if the cost of premiums for earthquake insurance exceeds the value of the coverage discounted for the risk of loss.
The bankruptcy or insolvency of a major tenant also may adversely affect the income produced by our properties. If any tenant becomes a debtor in a case under federal bankruptcy law, we cannot evict the tenant solely because of the bankruptcy. In addition, the bankruptcy court might permit the tenant to reject and terminate its lease with us.
If any tenant becomes a debtor in a case under federal bankruptcy law, we cannot evict the tenant solely because of the bankruptcy. In addition, the bankruptcy court might permit the tenant to reject and terminate its lease with us.
Any failure or perceived failure by us to comply with applicable data privacy and security laws could result in proceedings or actions against us by governmental entities or others, subject us to fines, penalties, judgments, and negative publicity, require us to change our business practices, increase our costs of operations, and adversely affect our business.
Any failure or perceived failure by us to comply with applicable data privacy and security laws could result in proceedings or actions against us by governmental entities or others, subject us to fines, penalties, judgments, and negative publicity, require us to change our business practices, increase our costs of operations, and adversely affect us. 23 Loss of key executive officers or our inability to successfully transition key executive officers could harm our operations and financial performance, and adversely affect the quoted trading price of our securities.
For additional information on our scheduled lease expirations, see “Item 7. Management’s 20 Discussion and Analysis of Financial Condition and Results of Operations —Factors That May Influence Future Results of Operations.” We are subject to governmental regulations that may affect the development, redevelopment, and use of our properties .
Management’s Discussion and Analysis of Financial Condition and Results of Operations —Factors That May Influence Future Results of Operations.” We are subject to governmental regulations that may affect the development, redevelopment, and use of our properties .
Epidemics, pandemics, or other outbreaks of an illness, disease, or virus that affect the markets in which we conduct our business and where our tenants are located, and actions taken to contain or prevent their further spread, could have significant adverse impacts on our business, financial condition, results of operations, cash flows, liquidity, and ability to satisfy our debt service obligations, and to pay dividends and distributions to security holders in a variety of ways that are difficult to predict.
Epidemics, pandemics, or other outbreaks of an illness, disease, or virus that affect the markets in which we conduct our business and where our tenants are located, and actions taken to contain or prevent their further spread, could have significant adverse impacts on us in a variety of ways that are difficult to predict.
A large percentage of our tenants operate in a concentrated group of industries and downturns in these industries could adversely affect our financial condition, results of operations and cash flows.
A large percentage of our tenants operate in a concentrated group of industries and downturns in these industries could adversely affect us.
Properties —Significant Tenants.” Our financial condition, results of operations, ability to borrow funds, and cash flows would be adversely affected if any of our significant tenants fails to renew its lease(s), renew its lease(s) on terms less favorable to us, becomes bankrupt or insolvent, or is otherwise unable to satisfy its lease obligations.
Properties —Significant Tenants.” We would be adversely affected if any of our significant tenants fails to renew its lease(s), renew its lease(s) on terms less favorable to us, becomes bankrupt or insolvent, or is otherwise unable to satisfy its lease obligations. Downturns in tenants’ businesses may reduce our revenues and cash flows .
Accordingly, if we cannot service our indebtedness, we may have to take actions such as seeking additional equity financing, delaying capital expenditures, or entering into strategic acquisitions and alliances.
Accordingly, if we cannot service our indebtedness, we may have to take actions such as seeking additional equity financing, delaying capital expenditures, or entering into strategic acquisitions and alliances. Any of these events or circumstances could have a material adverse effect on us.
We may be unable to complete acquisitions and successfully operate acquired properties . We continually evaluate the market of available properties and may continue to acquire office or mixed-use properties and undeveloped land when strategic opportunities exist.
These restrictions on our ability to sell our properties could have a material adverse effect on us. We may be unable to complete acquisitions and successfully operate acquired properties . We continually evaluate the market of available properties and may continue to acquire office or mixed-use properties and undeveloped land when strategic opportunities exist.
In general, prohibited transactions are sales or other dispositions of property, other than foreclosure property, held primarily for sale to customers in the ordinary course of business.
A REIT’s net income from prohibited transactions is subject to a 100% penalty tax. In general, prohibited transactions are sales or other dispositions of property, other than foreclosure property, held primarily for sale to customers in the ordinary course of business.
Management cannot predict whether future issuances of shares of the Company’s common stock, or the availability of shares for resale in the open market will result in decreasing the market price per share of the Company’s common stock.
Management cannot predict whether future issuances of shares of the Company’s common stock, or the availability of shares for resale in the open market will result in decreasing the market price per share of the Company’s common stock. As of December 31, 2025, 118,372,451 shares of the Company’s common stock were issued and outstanding.
Many of our costs, such as operating and general and administrative expenses, interest expense, and real estate construction costs, as well as the value of our assets, could be adversely impacted by periods of heightened inflation. While inflation has moderated in 2024, the consumer price index was at significantly elevated levels for most of the year.
Many of our costs, such as operating and general and administrative expenses, interest expense, and real estate construction costs, as well as the value of our assets, could be adversely impacted by periods of heightened inflation. In recent years, the consumer price index has increased substantially and remains elevated.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeSee “Risk Factors – We face risks associated with perceived or actual security breaches through cyberattacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology (IT) networks and related systems or those of our critical service providers.” Cybersecurity Governance Our Board considers cybersecurity risk as critical to the enterprise and delegates the cybersecurity risk oversight function to the Audit Committee.
Biggest changeRisk Factors – We face risks associated with perceived or actual security breaches through cyberattacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology (IT) networks and related systems or those of our critical service providers.” Cybersecurity Governance In connection with their oversight responsibilities, the Audit Committee receives periodic updates and the Board of Directors is briefed at least annually by our CTO on cybersecurity risks and related risk management, which includes topics such as the status of and specific metrics related to our cybersecurity program, recent developments, evolving standards and regulations, vulnerability assessments, third-party and independent reviews, the current threat environment, technology trends, and information security considerations arising with respect to our peers and third parties.
We face certain ongoing risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.
We are aware of known risks, including as a result of prior cybersecurity incidents, that have not materially affected us, including our operations, business strategy, results of operations, or financial condition. We face certain ongoing risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.
Our cybersecurity risk management team - including our Executive Vice President, Chief Financial Officer and Treasurer, Executive Vice President, Chief Administrative Officer, Executive Vice President, General Counsel and Secretary, Senior Vice President, Chief Accounting Officer and Controller, Senior Vice President, Information Technology, and the Vice President, Enterprise Applications - is responsible for assessing and managing our material risks from cybersecurity threats.
The Board of Directors’ oversight of cybersecurity risk management is supported by the Audit Committee, which regularly interacts with members of Kilroy’s executive team including our Senior Vice President, Chief Technology Officer (“CTO”), Executive Vice President, General Counsel and Secretary, and Senior Director, Cybersecurity. Collaborative Approach.
Removed
ITEM 1C. CYBERSECURITY Cybersecurity Risk Management and Strategy We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information.
Added
ITEM 1C. CYBERSECURITY Cybersecurity Our Board of Directors recognizes the critical importance of maintaining the trust and confidence of our tenants, investors, business partners, and employees, and is actively involved in the oversight of our enterprise risk management (“ERM”).
Removed
Our cybersecurity risk management program is integrated with our overall enterprise risk management program and shares common methodologies, reporting channels, and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.
Added
As a key component of our ERM framework, the Board of Directors oversees cybersecurity risk as part of its overall risk oversight responsibilities. The Board of Directors has delegated primary oversight of cybersecurity and other information technology risks to the Audit Committee, which monitors management’s implementation and administration of our cybersecurity risk management program.
Removed
Our overall cybersecurity program includes, amongst other things: • security tools, technologies and processes, control reviews, policy reviews, penetration tests, and investments in our security infrastructure; • cybersecurity awareness training exercises for our employees, including phishing simulations to raise awareness of spoofed or manipulated electronic communications, and other critical security threats; • annual review of System and Organization (“SOC”) reports for our core third-party providers based on our assessment of their respective criticality and risk profile; and • a Cybersecurity Incident Response Plan that provides a framework and guidelines for responding to cybersecurity incidents that may compromise the confidentiality, integrity, and availability of our critical systems and information.
Added
Our cybersecurity policies, standards, processes, and practices are integrated into our enterprise risk strategy and are explicitly mapped to the NIST Cybersecurity Framework (Identify, Protect, Detect, Respond, Recover). This framework defines how we structure, implement, and govern our controls, including risk assessments, monitoring, incident response, and recovery activities, alongside other applicable standards.
Removed
Our Board has delegated to the Audit Committee oversight of cybersecurity and other information technology risks. The Audit Committee receives periodic reports from management on our cybersecurity risks. We have not identified known risks, including as a result of prior cybersecurity incidents, that have materially affected us, including our operations, business strategy, results of operations, or financial condition.
Added
In general, we seek to address cybersecurity risks through a cross-functional approach that is focused on preserving the confidentiality, integrity, and availability of the information systems and information that we collect and store by identifying, preventing and mitigating cybersecurity threats and effectively responding to any incidents. Risk Management and Strategy Our cybersecurity program is focused on the following areas: Governance.
Removed
The Audit Committee oversees management’s design, implementation, and enforcement of our cybersecurity risk management program. The Audit Committee reports to the full Board regarding its activities, including those related to cybersecurity risk oversight. The full Board also receives briefings from management on our cyber risk management program.
Added
We have implemented a cross-functional approach to identifying, preventing, and mitigating cybersecurity threats and incidents. Safeguards. We deploy technical and non-technical safeguards that are designed to protect our information systems from cybersecurity threats, including anti-malware, firewalls, intrusion prevention and detection systems, and privilege access controls, which are evaluated and improved through vulnerability assessments and control testing.
Removed
Board members receive presentations on cybersecurity topics from our Executive Vice President, Chief Administrative Officer, Executive Vice President, General Counsel and Secretary, and Vice President, Enterprise Applications as part of the Board’s continuing education.
Added
We operate a security operations center which monitors our environment in a continuous manner. Incident Response and Recovery Planning. We have established and maintain business continuity and technical recovery plans of critical systems and resources in the event of a cybersecurity incident, and such plans are tested and evaluated on a recurring basis.
Removed
The team has primary responsibility for our overall cybersecurity risk management program and supervises our internal cybersecurity personnel, our retained external cybersecurity consultants, and the simulated tabletop exercises of our Cybersecurity Incident Response Plan, conducted at least 38 annually to ensure our team is prepared to respond to any future cybersecurity incidents.
Added
We also maintain a cybersecurity insurance policy, though the cost related to cybersecurity incidents or disruptions may not fully be covered. Third Party Risk Management.
Removed
The team is informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents through briefings with internal and external personnel, publicly available information about cybersecurity risks and threats, and through alerts from security tools deployed in our IT environment.
Added
We maintain a third-party cyber risk management program to identify and oversee cybersecurity risks presented by third-party providers, including vendors, consultants, service providers, and other external users of our system, as well as systems of third parties that could adversely impact our business in the event of a cybersecurity incident.
Removed
Our Vice President, Enterprise Application’s experience includes a Certified Information Systems Security Professional (“CISSP”) certification, which is designed for security professionals with extensive knowledge in contemporary cybersecurity and information security practices. In addition, our Chief Executive Officer has broad expertise in overseeing cybersecurity programs, incident response teams, and information technology departments. 39
Added
We may conduct upfront diligence and ongoing monitoring and/or seek contractual protections depending on our assessment of each provider’s criticality to our operations, access to our systems and information, and overall risk profile. In the event that we identify a risk, we communicate the risk to the third party and monitor remediation. Education and Awareness.
Added
We provide regular training, including ongoing end-user security awareness training and attack simulation assessments for employees regarding cybersecurity threats to equip our employees with tools 31 to address cybersecurity threats, and to communicate our evolving information security policies, standards, processes, and practices.
Added
Additionally, the Audit Committee receives prompt and ongoing information regarding significant cybersecurity incidents.
Added
The CTO and Senior Director, Cybersecurity are primarily responsible for assessing and managing cybersecurity risks and work collaboratively across the business to implement a program designed to protect our information systems from cybersecurity threats and to promptly respond to any future cybersecurity incidents in accordance with our incident response and business continuity plans.
Added
Through ongoing communications, the CTO and Senior Director, Cybersecurity help our Executive Vice President, General Counsel and Secretary, among others, to stay informed of, and monitor the prevention, detection, mitigation, and remediation of cybersecurity threats and incidents.
Added
Our CTO has more than 15 years of experience in senior information technology leadership roles spanning enterprise data, analytics, and corporate applications, with responsibilities that have included technology platform strategy, cybersecurity risk management, and operational resilience. The CTO also holds industry‑recognized credentials, including the Certified Information Security Manager (CISM) certification and a graduate certificate in Information Technology and Information Systems.
Added
Our Senior Director, Cybersecurity, brings extensive leadership experience in information security, having served as the Chief Information Security Officer for three public companies, and holds an undergraduate degree in Information Systems, a master’s degree in Cybersecurity and Information Assurance, and multiple professional certifications, including Certified Chief Information Security Officer and Certified Chief Risk Officer. 32

Item 2. Properties

Properties — owned and leased real estate

30 edited+7 added−10 removed9 unchanged
Biggest changeProperty Location No. of Buildings Year Built/ Renovated Rentable Square Feet Percentage Occupied at 12/31/2024 (1) Annualized Base Rent (in $000’s) (2) Annualized Rent Per Square Foot (2) Los Angeles 3101-3243 La Cienega Boulevard, Culver City, California 19 2008-2017 166,207 18.6 % $ 1,682 $ 54.52 2240 East Imperial Highway, El Segundo, California 1 1983/ 2008 122,870 100.0 % 3,713 30.21 2250 East Imperial Highway, El Segundo, California 1 1983 298,728 46.2 % 4,653 34.03 2260 East Imperial Highway, El Segundo, California 1 1983/ 2012 298,728 100.0 % 9,026 30.21 909 North Pacific Coast Highway, El Segundo, California 1 1972/ 2005 244,880 72.2 % 6,725 38.03 999 North Pacific Coast Highway, El Segundo, California 1 1962/ 2003 138,389 48.7 % 2,137 34.64 1350 Ivar Avenue, Los Angeles, California 1 2020 16,448 100.0 % 1,005 61.10 1355 Vine Street, Los Angeles, California 1 2020 183,129 100.0 % 10,882 59.42 1375 Vine Street, Los Angeles, California 1 2020 159,236 100.0 % 9,805 61.58 1395 Vine Street, Los Angeles, California 1 2020 2,575 100.0 % 161 62.65 1500 North El Centro Avenue, Los Angeles, California 1 2016 113,447 63.6 % 4,872 67.54 1525 North Gower Street, Los Angeles, California 1 2016 9,610 100.0 % 650 67.61 1575 North Gower Street, Los Angeles, California 1 2016 264,430 98.3 % 15,990 61.52 6115 West Sunset Boulevard, Los Angeles, California 1 1938/ 2015 26,238 23.8 % 390 62.49 6121 West Sunset Boulevard, Los Angeles, California 1 1938/ 2015 93,418 100.0 % 4,605 49.29 6255 West Sunset Boulevard, Los Angeles, California 1 1971/ 1999 325,772 59.0 % 9,768 52.92 3750 Kilroy Airport Way, Long Beach, California 1 1989 10,718 100.0 % 128 33.52 41 Property Location No. of Buildings Year Built/ Renovated Rentable Square Feet Percentage Occupied at 12/31/2024 (1) Annualized Base Rent (in $000’s) (2) Annualized Rent Per Square Foot (2) 3760 Kilroy Airport Way, Long Beach, California 1 1989 166,761 80.4 % 4,967 37.04 3780 Kilroy Airport Way, Long Beach, California 1 1989 221,452 96.6 % 7,977 38.03 3800 Kilroy Airport Way, Long Beach, California 1 2000 192,476 93.5 % 5,934 32.97 3840 Kilroy Airport Way, Long Beach, California 1 1999 138,441 77.6 % 4,446 41.40 3880 Kilroy Airport Way, Long Beach, California 1 1987/ 2013 96,923 51.9 % 1,655 32.93 3900 Kilroy Airport Way, Long Beach, California 1 1987 130,935 87.3 % 2,791 38.06 8560 West Sunset Boulevard, West Hollywood, California 1 1963/ 2007 76,359 93.6 % 5,854 82.70 8570 West Sunset Boulevard, West Hollywood, California 1 2002/ 2007 49,276 99.0 % 3,203 66.03 8580 West Sunset Boulevard, West Hollywood, California 1 2002/ 2007 6,875 — % — — 8590 West Sunset Boulevard, West Hollywood, California 1 2002/ 2007 56,750 99.7 % 3,407 60.19 12100 West Olympic Boulevard, Los Angeles, California 1 2003 155,679 74.1 % 8,590 74.51 12200 West Olympic Boulevard, Los Angeles, California 1 2000 154,544 32.0 % 973 69.00 12233 West Olympic Boulevard, Los Angeles, California 1 1980/ 2011 156,746 54.0 % 3,231 40.69 12312 West Olympic Boulevard, Los Angeles, California 1 1950/ 1997 78,900 100.0 % 3,919 49.66 2100/2110 Colorado Avenue, Santa Monica, California 3 1992/ 2009 104,853 55.4 % 4,580 78.79 501 Santa Monica Boulevard, Santa Monica, California 1 1974 78,509 65.0 % 4,038 80.93 Subtotal/Weighted Average – Los Angeles 53 4,340,302 75.0 % $ 151,757 $ 48.25 San Diego 12225 El Camino Real, Del Mar, California 1 1998 58,401 100.0 % $ 2,543 $ 43.55 12235 El Camino Real, Del Mar, California 1 1998 53,751 100.0 % 2,627 48.87 12340 El Camino Real, Del Mar, California 1 2002/ 2022 109,307 100.0 % — — 12390 El Camino Real, Del Mar, California 1 2000 73,238 100.0 % 4,237 57.85 12770 El Camino Real, Del Mar, California 1 2016 75,035 100.0 % 4,226 56.33 12780 El Camino Real, Del Mar, California 1 2013 140,591 100.0 % 7,137 50.77 12790 El Camino Real, Del Mar, California 1 2013 87,944 100.0 % 4,940 56.18 12830 El Camino Real, Del Mar, California 1 2021 196,444 100.0 % 14,419 73.40 12860 El Camino Real, Del Mar, California 1 2021 92,042 100.0 % 6,621 71.93 12348 High Bluff Drive, Del Mar, California 1 1999 39,192 51.5 % 926 45.90 12400 High Bluff Drive, Del Mar, California 1 2004/ 2022 216,518 100.0 % 15,576 71.94 12707 High Bluff Drive, Del Mar, California 1 2017 59,245 93.5 % 3,428 61.87 12777 High Bluff Drive, Del Mar, California 1 2017 44,486 100.0 % 2,319 52.14 42 Property Location No. of Buildings Year Built/ Renovated Rentable Square Feet Percentage Occupied at 12/31/2024 (1) Annualized Base Rent (in $000’s) (2) Annualized Rent Per Square Foot (2) 3579 Valley Centre Drive, Del Mar, California 1 1999 54,960 94.7 % 3,085 59.30 3611 Valley Centre Drive, Del Mar, California 1 2000 132,425 100.0 % 7,337 55.41 3661 Valley Centre Drive, Del Mar, California 1 2001 131,662 100.0 % 4,205 33.71 3721 Valley Centre Drive, Del Mar, California 1 2003 117,777 90.3 % 6,003 56.46 3811 Valley Centre Drive, Del Mar, California 1 2000 118,912 100.0 % 6,782 57.03 3745 Paseo Place, Del Mar, California 1 2019 95,871 86.3 % 5,876 71.00 13480 Evening Creek Drive North, San Diego, California 1 2008 143,401 56.7 % 4,139 50.90 13500 Evening Creek Drive North, San Diego, California 1 2004 137,660 100.0 % 6,267 45.53 13520 Evening Creek Drive North, San Diego, California 1 2004 146,701 74.2 % 4,861 44.65 2100 Kettner Boulevard, San Diego, California 1 2022 212,423 30.2 % 4,469 69.83 2305 Historic Decatur Road, Point Loma, California 1 2009 107,456 88.3 % 4,536 47.84 9455 Towne Centre Drive, UTC, California 1 2021 160,444 100.0 % 7,822 48.76 9514 Towne Centre Drive, UTC, California 1 2023 70,616 100.0 % 5,220 73.92 Subtotal/Weighted Average – San Diego 26 2,876,502 89.2 % $ 139,601 $ 54.57 San Francisco Bay Area 4100 Bohannon Drive, Menlo Park, California 1 1985 47,643 100.0 % $ 2,640 $ 55.41 4200 Bohannon Drive, Menlo Park, California 1 1987 43,600 69.4 % 1,477 48.78 4300 Bohannon Drive, Menlo Park, California 1 1988 63,430 63.5 % 2,526 62.77 4500 Bohannon Drive, Menlo Park, California 1 1990 63,429 100.0 % 4,074 64.23 4600 Bohannon Drive, Menlo Park, California 1 1990 48,413 100.0 % 2,600 53.71 4700 Bohannon Drive, Menlo Park, California 1 1989 63,429 100.0 % 3,513 55.39 1290-1300 Terra Bella Avenue, Mountain View, California 1 1961 114,175 100.0 % 7,445 65.21 680 East Middlefield Road, Mountain View, California 1 2014 171,676 100.0 % 7,763 45.22 690 East Middlefield Road, Mountain View, California 1 2014 171,215 100.0 % 7,729 45.14 1701 Page Mill Road, Palo Alto, California 1 2015 128,688 100.0 % 8,461 65.75 3150 Porter Drive, Palo Alto, California 1 1998 36,886 100.0 % 3,277 88.83 900 Jefferson Avenue, Redwood City, California 1 2015 228,226 100.0 % 13,468 59.01 900 Middlefield Road, Redwood City, California 1 2015 119,616 100.0 % 10,236 85.92 100 Hooper Street, San Francisco, California 1 2018 417,914 95.5 % 23,646 59.33 100 First Street, San Francisco, California 1 1988 480,457 93.6 % 30,940 71.62 303 Second Street, San Francisco, California 1 1988 784,658 73.5 % 51,919 91.47 43 Property Location No. of Buildings Year Built/ Renovated Rentable Square Feet Percentage Occupied at 12/31/2024 (1) Annualized Base Rent (in $000’s) (2) Annualized Rent Per Square Foot (2) 201 Third Street, San Francisco, California 1 1983 346,538 25.5 % 6,081 72.01 360 Third Street, San Francisco, California 1 2013 436,357 66.6 % 25,489 88.08 250 Brannan Street, San Francisco, California 1 1907/ 2001 100,850 100.0 % 10,323 102.36 301 Brannan Street, San Francisco, California 1 1909/ 1989 82,834 100.0 % 7,391 89.23 333 Brannan Street, San Francisco, California 1 2016 185,602 100.0 % 17,688 95.30 345 Brannan Street, San Francisco, California 1 2015 110,050 99.7 % 10,551 96.16 350 Mission Street, San Francisco, California 1 2016 455,340 99.7 % 24,076 53.09 345 Oyster Point Boulevard, South San Francisco, California 1 2001 40,410 100.0 % 2,192 54.24 347 Oyster Point Boulevard, South San Francisco, California 1 1998 39,780 100.0 % 2,158 54.24 349 Oyster Point Boulevard, South San Francisco, California 1 1999 65,340 100.0 % 4,265 65.27 350 Oyster Point Boulevard, South San Francisco, California 1 2021 234,892 100.0 % 18,167 77.34 352 Oyster Point Boulevard, South San Francisco, California 1 2021 232,215 100.0 % 18,062 77.78 354 Oyster Point Boulevard, South San Francisco, California 1 2021 193,472 100.0 % 15,048 77.78 505 North Mathilda Avenue, Sunnyvale, California 1 2014 212,322 100.0 % 9,449 44.50 555 North Mathilda Avenue, Sunnyvale, California 1 2014 212,322 100.0 % 9,449 44.50 599 North Mathilda Avenue, Sunnyvale, California 1 2000 76,031 — % — — 605 North Mathilda Avenue, Sunnyvale, California 1 2014 162,785 100.0 % 7,244 44.50 Subtotal/Weighted Average – San Francisco 33 6,170,595 87.4 % $ 369,347 $ 68.89 Seattle 601 108th Avenue North East, Bellevue, Washington 1 2000 490,738 98.7 % $ 20,410 $ 42.60 10900 North East 4th Street, Bellevue, Washington 1 1983 428,557 89.7 % 13,681 37.60 2001 West 8th Avenue, Seattle, Washington 1 2009 535,395 19.5 % 4,913 47.65 333 Dexter Ave North, Seattle, Washington 1 2022 618,766 100.0 % 31,809 51.41 701 North 34th Street, Seattle, Washington 1 1998 141,860 44.8 % 2,194 34.52 801 North 34th Street, Seattle, Washington 1 1998 173,615 100.0 % 5,789 33.34 837 North 34th Street, Seattle, Washington 1 2008 112,487 85.6 % 2,269 23.57 320 Westlake Avenue North, Seattle, Washington 1 2007 184,644 96.1 % 8,079 45.52 321 Terry Avenue North, Seattle, Washington 1 2013 135,755 100.0 % 5,417 39.90 401 Terry Avenue North, Seattle, Washington 1 2003 174,530 100.0 % 7,008 40.15 Subtotal/Weighted Average – Seattle 10 2,996,347 80.5 % $ 101,569 $ 42.57 Austin 200 W. 6th Street, Austin CBD, Texas 1 2023 758,975 74.7 % $ 25,283 $ 44.58 44 Property Location No. of Buildings Year Built/ Renovated Rentable Square Feet Percentage Occupied at 12/31/2024 (1) Annualized Base Rent (in $000’s) (2) Annualized Rent Per Square Foot (2) Subtotal/Weighted Average - Austin 1 758,975 74.7 % $ 25,283 $ 44.58 TOTAL/WEIGHTED AVERAGE 123 17,142,721 82.8 % $ 787,557 $ 56.18 ____________________ (1) Based on all leases at the respective properties in effect as of December 31, 2024.
Biggest changeLa Cienega Boulevard, Culver City, California 19 2008-2017 166,207 43.6 % 4,764 66.32 2240 East Imperial Highway, El Segundo, California 1 1983 / 2008 122,870 100.0 % 3,713 30.21 2250 East Imperial Highway, El Segundo, California 1 1983 298,728 37.7 % 3,346 30.05 2260 East Imperial Highway, El Segundo, California 1 1983 / 2012 298,728 100.0 % 9,026 30.21 909 North Pacific Coast Highway, El Segundo, California 1 1972 / 2005 244,880 67.4 % 6,451 39.76 999 North Pacific Coast Highway, El Segundo, California 1 1962 / 2003 138,389 51.9 % 2,594 39.28 1350 Ivar Avenue, Los Angeles, California 1 2020 16,448 100.0 % 1,005 61.10 1355 Vine Street, Los Angeles, California 1 2020 183,129 100.0 % 10,882 59.42 1375 Vine Street, Los Angeles, California 1 2020 159,236 100.0 % 9,805 61.58 1395 Vine Street, Los Angeles, California 1 2020 2,575 100.0 % 161 62.65 1500 North El Centro Avenue, Los Angeles, California 1 2016 113,447 63.6 % 4,872 67.54 1525 North Gower Street, Los Angeles, California 1 2016 9,610 100.0 % 650 67.61 1575 North Gower Street, Los Angeles, California 1 2016 264,430 98.3 % 16,015 61.61 6115 West Sunset Boulevard, Los Angeles, California 1 1938 / 2015 26,238 73.4 % 1,037 53.85 6121 West Sunset Boulevard, Los Angeles, California 1 1938 / 2015 93,418 — % — — 3750 Kilroy Airport Way, Long Beach, California 1 1989 10,718 100.0 % 128 33.52 34 Property Location No. of Buildings Year Built / Renovated Rentable Square Feet Percentage Occupied (1) Annualized Base Rent (in thousands) (2) Annualized Rent Per Square Foot (2) 3760 Kilroy Airport Way, Long Beach, California 1 1989 166,761 77.5 % 4,613 37.20 3780 Kilroy Airport Way, Long Beach, California 1 1989 221,452 97.4 % 8,088 38.23 3800 Kilroy Airport Way, Long Beach, California 1 2000 192,476 93.4 % 5,235 29.12 3840 Kilroy Airport Way, Long Beach, California 1 1999 138,441 100.0 % 5,706 41.22 3880 Kilroy Airport Way, Long Beach, California 1 1987 / 2013 96,922 91.3 % 3,191 36.05 3900 Kilroy Airport Way, Long Beach, California 1 1987 130,935 62.3 % 3,263 40.10 8560 West Sunset Boulevard, West Hollywood, California 1 1963 / 2007 76,359 98.9 % 6,309 84.29 8570 West Sunset Boulevard, West Hollywood, California 1 2002 / 2007 49,276 99.0 % 3,232 68.08 8580 West Sunset Boulevard, West Hollywood, California 1 2002 / 2007 6,875 — % — — 8590 West Sunset Boulevard, West Hollywood, California 1 2002 / 2007 56,750 99.7 % 2,807 49.59 12100 West Olympic Boulevard, Los Angeles, California 1 2003 155,679 68.7 % 7,932 74.13 12200 West Olympic Boulevard, Los Angeles, California 1 2000 154,544 32.0 % 973 69.17 12233 West Olympic Boulevard, Los Angeles, California 1 1980 / 2011 156,746 42.0 % 2,308 45.74 12312 West Olympic Boulevard, Los Angeles, California 1 1950 / 1997 78,900 100.0 % 1,503 19.06 2100/2110 Colorado Avenue, Santa Monica, California 3 1992 / 2009 104,853 55.4 % 4,580 78.53 Subtotal/Weighted Average – Los Angeles 52 4,242,386 75.1 % $ 152,511 $ 49.14 San Diego 12225 El Camino Real, San Diego, California 1 1998 58,401 100.0 % $ 2,543 $ 43.55 12235 El Camino Real, San Diego, California 1 1998 53,751 100.0 % 2,627 48.87 12340 El Camino Real, San Diego, California 1 2002 / 2022 110,950 25.9 % 1,436 49.93 12390 El Camino Real, San Diego, California 1 2000 73,238 100.0 % 4,237 57.85 12770 El Camino Real, San Diego, California 1 2016 75,035 100.0 % 4,761 72.40 12780 El Camino Real, San Diego, California 1 2013 140,591 100.0 % 7,138 50.77 12790 El Camino Real, San Diego, California 1 2013 87,944 100.0 % 4,940 56.18 12830 El Camino Real, San Diego, California 1 2021 196,444 100.0 % 14,419 73.40 12860 El Camino Real, San Diego, California 1 2021 92,042 100.0 % 6,279 68.22 12348 High Bluff Drive, San Diego, California 1 1999 39,192 51.5 % 926 45.90 12400 High Bluff Drive, San Diego, California 1 2004 / 2022 216,518 100.0 % 17,216 79.51 12707 High Bluff Drive, San Diego, California 1 2017 59,245 91.2 % 3,417 63.22 12777 High Bluff Drive, San Diego, California 1 2017 44,486 100.0 % 2,319 52.14 3579 Valley Centre Drive, San Diego, California 1 1999 54,960 100.0 % 3,283 59.74 35 Property Location No. of Buildings Year Built / Renovated Rentable Square Feet Percentage Occupied (1) Annualized Base Rent (in thousands) (2) Annualized Rent Per Square Foot (2) 3611 Valley Centre Drive, San Diego, California 1 2000 132,425 100.0 % 7,465 56.37 3661 Valley Centre Drive, San Diego, California 1 2001 124,756 34.2 % 2,902 68.08 3721 Valley Centre Drive, San Diego, California 1 2003 117,777 94.8 % 6,277 56.24 3811 Valley Centre Drive, San Diego, California 1 2000 118,912 100.0 % 7,943 66.80 3745 Paseo Place, San Diego, California 1 2019 95,871 89.0 % 6,147 72.06 2100 Kettner Boulevard, San Diego, California 1 2022 212,915 45.0 % 6,290 68.24 2305 Historic Decatur Road, San Diego, California 1 2009 107,456 88.3 % 4,536 47.84 3535 General Atomics Court, San Diego, California 1 1991/ 2015 80,543 28.1 % 1,222 53.97 3565 General Atomics Court, San Diego, California 1 1993 / 2017 43,295 100.0 % 2,810 64.90 3530 John Hopkins Court, San Diego, California 1 1999 / 2012 45,589 100.0 % 4,399 96.48 3550 John Hopkins Court, San Diego, California 1 2000 / 2012 62,739 100.0 % 5,192 82.76 4690 Executive Drive, San Diego, California 1 1999 / 2025 52,074 — % — — 9455 Towne Centre Drive, San Diego, California 1 2021 160,444 100.0 % 7,822 48.76 9514 Towne Centre Drive, San Diego, California 1 2023 70,616 100.0 % 5,220 73.92 Subtotal/Weighted Average – San Diego 28 2,728,209 83.7 % $ 143,766 $ 63.32 San Francisco Bay Area 4100 Bohannon Drive, Menlo Park, California 1 1985 47,643 100.0 % $ 2,640 $ 55.41 4200 Bohannon Drive, Menlo Park, California 1 1987 43,600 69.4 % 1,477 56.64 4300 Bohannon Drive, Menlo Park, California 1 1988 63,430 38.8 % 1,188 48.31 4400 Bohannon Drive, Menlo Park, California 1 1988 / 2025 48,414 — % — — 4500 Bohannon Drive, Menlo Park, California 1 1990 63,429 100.0 % 4,074 64.23 4600 Bohannon Drive, Menlo Park, California 1 1990 48,413 100.0 % 2,570 53.09 4700 Bohannon Drive, Menlo Park, California 1 1989 63,429 100.0 % 3,513 55.39 900 Jefferson Avenue, Redwood City, California 1 2015 228,226 100.0 % 13,468 59.01 900 Middlefield Road, Redwood City, California 1 2015 119,616 100.0 % 10,236 85.92 1290-1300 Terra Bella Avenue, Mountain View, California 1 1961 114,175 100.0 % 7,446 65.21 680 East Middlefield Road, Mountain View, California 1 2014 171,676 100.0 % 7,763 45.22 690 East Middlefield Road, Mountain View, California 1 2014 171,215 100.0 % 7,730 45.14 1701 Page Mill Road, Palo Alto, California 1 2015 128,688 100.0 % 8,461 65.75 3150 Porter Drive, Palo Alto, California 1 1998 36,886 100.0 % 3,277 88.83 100 First Street, San Francisco, California 1 1988 480,457 95.3 % 31,918 72.56 36 Property Location No. of Buildings Year Built / Renovated Rentable Square Feet Percentage Occupied (1) Annualized Base Rent (in thousands) (2) Annualized Rent Per Square Foot (2) 100 Hooper Street, San Francisco, California 1 2018 417,914 97.4 % 23,426 57.68 303 Second Street, San Francisco, California 1 1988 784,658 66.1 % 46,204 89.82 201 Third Street, San Francisco, California 1 1983 355,960 56.0 % 7,919 40.05 360 Third Street, San Francisco, California 1 2013 436,357 66.6 % 25,489 88.08 250 Brannan Street, San Francisco, California 1 1907 / 2001 100,850 100.0 % 10,323 102.36 301 Brannan Street, San Francisco, California 1 1909 / 1989 82,834 100.0 % 7,392 89.23 333 Brannan Street, San Francisco, California 1 2016 185,602 100.0 % 17,688 95.30 345 Brannan Street, San Francisco, California 1 2015 110,050 99.7 % 10,551 96.16 350 Mission Street, San Francisco, California 1 2016 455,340 99.7 % 24,117 53.18 345 Oyster Point Boulevard, South San Francisco, California 1 2001 40,410 100.0 % 2,192 54.24 347 Oyster Point Boulevard, South San Francisco, California 1 1998 39,780 100.0 % 2,158 54.24 349 Oyster Point Boulevard, South San Francisco, California 1 1999 65,340 — % — — 350 Oyster Point Boulevard, South San Francisco, California 1 2021 234,892 100.0 % 18,167 77.34 352 Oyster Point Boulevard, South San Francisco, California 1 2021 232,215 100.0 % 18,062 77.78 354 Oyster Point Boulevard, South San Francisco, California 1 2021 193,472 100.0 % 15,048 77.78 Subtotal/Weighted Average – San Francisco 30 5,564,971 86.2 % $ 334,497 $ 70.21 Seattle 601 108th Avenue North East, Bellevue, Washington 1 2000 490,738 87.1 % $ 18,052 $ 42.73 10900 North East 4th Street, Bellevue, Washington 1 1983 428,557 88.6 % 17,587 46.54 2001 8th Avenue, Seattle, Washington 1 2009 535,395 26.0 % 5,598 40.52 320 Westlake Avenue North, Seattle, Washington 1 2007 184,644 96.1 % 8,117 45.74 321 Terry Avenue North, Seattle, Washington 1 2013 135,755 100.0 % 5,505 40.55 401 Terry Avenue North, Seattle, Washington 1 2003 174,530 100.0 % 7,008 40.15 333 Dexter Ave North, Seattle, Washington 1 2022 618,766 100.0 % 31,654 51.16 701 North 34th Street, Seattle, Washington 1 1998 143,136 64.6 % 3,254 35.18 801 North 34th Street, Seattle, Washington 1 1998 173,615 100.0 % 5,789 33.34 837 North 34th Street, Seattle, Washington 1 2008 112,487 71.3 % 2,827 35.25 Subtotal/Weighted Average – Seattle 10 2,997,623 80.0 % $ 105,391 $ 44.07 Austin 200 W. 6th Street, Austin, Texas 1 2023 758,975 82.2 % $ 28,443 $ 46.11 Subtotal/Weighted Average - Austin 1 758,975 82.2 % $ 28,443 $ 46.11 TOTAL/WEIGHTED AVERAGE 121 16,292,164 81.6 % $ 764,608 $ 58.16 37 ____________________ (1) Based on all leases at the respective properties in effect as of December 31, 2025.
As of December 31, 2024, all of our properties and development and redevelopment projects, and all of our business was conducted in the state of California with the exception of ten stabilized office properties and one future development project located in the state of Washington and one stabilized office property and one future development project located in Austin, Texas.
As of December 31, 2025, all of our properties and development and redevelopment projects, and all of our business was conducted in the state of California with the exception of ten stabilized office properties and one future development project located in the state of Washington, and one stabilized office property and one future development project located in Austin, Texas.
We believe that all of our properties are well maintained and do not require significant capital improvements. As of December 31, 2024, all of our stabilized office properties, excluding our three residential properties, were managed through internal property managers.
We believe that all of our properties are well maintained and do not require significant capital improvements. As of December 31, 2025, all of our stabilized office properties, excluding our three residential properties, were managed through internal property managers.
Includes month-to-month leases and leases with a lease term of less than one year as of December 31, 2024. Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements..
Includes month-to-month leases and leases with a lease term of less than one year as of December 31, 2025. Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements.
Excludes month-to-month leases, vacant space, and leases with a lease term of less than one year, as of December 31, 2024. Includes 100% of annualized base rent of consolidated property partnerships.
Excludes month-to-month leases, vacant space, and leases with a lease term of less than one year, as of December 31, 2025. Includes 100% of annualized base rent of consolidated property partnerships.
All our properties are held in fee, except for the fourteen office buildings that are held subject to five long-term ground leases for the land (see Note 19 “Commitments and Contingencies” to our consolidated financial statements included in this report for additional information regarding our ground lease obligations). 40 In general, the office properties are leased to tenants on a full service gross, modified gross, or triple net basis.
All our properties are held in fee, except for the fourteen office buildings that are held subject to five long-term ground leases for the land (see Note 17 “Commitments and Contingencies” to our consolidated financial statements included in this report for additional information regarding our ground lease obligations). 33 In general, our office properties are leased to tenants on a full service gross, modified gross, or triple net basis.
While technology companies comprise 54% of our office portfolio base rent, technology is a broad concept that encompasses diverse industries, including software, social media, hardware, cloud computing, internet media, and technology services. 48 Lease Expirations The following table sets forth a summary of our lease expirations for our stabilized portfolio, excluding our residential properties, for each of the next ten years beginning with 2025, assuming that none of the tenants exercise renewal options or termination rights.
While technology companies comprise 51% of our office portfolio base rent, technology is a broad concept that encompasses diverse industries, including software, social media, hardware, cloud computing, internet media, and technology services. 41 Lease Expirations The following table sets forth a summary of our lease expirations for our stabilized portfolio, excluding our residential properties, for each of the next ten years beginning with 2026, assuming that none of the tenants exercise renewal options or termination rights.
For multi-phase projects, interest and carry cost capitalization may cease and recommence driven by various factors, including tenant improvement construction and other tenant related timing or project scope. 45 Future Development Pipeline The following table sets forth certain information relating to our future development pipeline as of December 31, 2024. Future Development Pipeline Location Approx.
For multi-phase projects, interest and carry cost capitalization may cease and recommence driven by various factors, including tenant improvement construction, other tenant related timing, or changes in project scope. 38 Future Development Pipeline The following table sets forth certain information relating to our future development pipeline as of December 31, 2025 : Future Development Pipeline Location Approx.
Number of Properties Number of Units 2024 Average Occupancy Stabilized Residential Properties 3 1,001 92.5 % Our stabilized portfolio includes all of our properties with the exception of development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, undeveloped land, and real estate assets held for sale.
Number of Properties Number of Units 2025 Average Occupancy Stabilized Residential Properties 3 1,001 94.1 % Our stabilized portfolio includes all of our properties with the exception of development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, undeveloped land, and real estate assets held for sale, if any.
At December 31, 2024, 46% of our properties were leased to tenants on a triple net basis, 27% of our properties were leased to tenants on a modified gross basis, and 21% of our properties were leased to tenants on a full service gross basis, and 6% of our properties were leased to tenants on a modified net basis, in each case as a percentage of our annualized base rental revenue.
At December 31, 2025, 46% of our properties were leased to tenants on a triple net basis, 26% of our properties were leased to tenants on a modified gross basis, and 22% of our properties were leased to tenants on a full service gross basis, and 6% of our properties were leased to tenants on a modified net basis, in each case as a percentage of our annualized base rental revenue.
Costs capitalized to construction in progress for development and redevelopment properties are transferred to land and improvements, buildings and improvements, and deferred leasing costs on our consolidated balance sheets as the projects or phases of projects are placed in service. We did not have any properties or undeveloped land held for sale at December 31, 2024.
Costs capitalized to construction in progress for development and redevelopment properties are transferred to land and improvements, buildings and improvements, and deferred leasing costs on our consolidated balance sheets as the projects or phases of projects are placed in service.
ITEM 2. PROPERTIES General Our stabilized portfolio of operating properties was comprised of the following properties at December 31, 2024: Number of Buildings Rentable Square Feet Number of Tenants Percentage Occupied (1) Stabilized Office Properties (2) 123 17,142,721 428 82.8 % _______________________ (1) Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements.
ITEM 2. PROPERTIES General Our stabilized portfolio of operating properties was comprised of the following properties at December 31, 2025: Number of Buildings Rentable Square Feet Number of Tenants Percentage Occupied (1) Stabilized Office Properties (2) 121 16,292,164 438 81.6 % _______________________ (1) Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements.
San Francisco Bay Area / Seattle 24,706 472,988 3.1% 2.8% 2029 - 2030 / 2032 5.4 7 Okta, Inc. San Francisco Bay Area 24,206 293,001 3.1% 1.7% 2028 3.8 8 DoorDash, Inc. San Francisco Bay Area 23,842 236,759 3.0% 1.4% 2032 7.1 9 Netflix, Inc. Los Angeles 21,854 361,388 2.8% 2.1% 2032 7.6 10 Cytokinetics, Inc.
San Francisco Bay Area 24,206 293,001 3.2% 1.8% 2028 2.8 7 DoorDash, Inc. San Francisco Bay Area 23,842 236,759 3.1% 1.5% 2032 6.1 8 Netflix, Inc. Los Angeles 21,854 361,388 2.9% 2.2% 2032 6.6 9 Cytokinetics, Inc. San Francisco Bay Area 18,167 234,892 2.4% 1.4% 2033 7.8 10 Box, Inc.
(2) Annualized base rental revenue includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue.
(2) Annualized base rental revenue is calculated as the annualized monthly contractual rents from existing tenants in occupancy, including the impact of straight-lined rent escalations and the amortization of free rent periods and excluding the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below-market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue.
Our stabilized portfolio also excludes our future development pipeline, which as of December 31, 2024, was comprised of eight future development sites, representing approximately 64 gross acres of undeveloped land.
Our stabilized portfolio also excludes our future development pipeline, which as of December 31, 2025, was comprised of eight potential future development sites.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Liquidity Sources,” Notes 9 and 10 to our consolidated financial statements and “Schedule III—Real Estate and Accumulated Depreciation,” included in this report.
Our secured debt represents an aggregate principal indebtedness of approximately $600.4 million. See additional information regarding our secured debt in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Liquidity Sources,” Notes 7 and 8 to our consolidated financial statements, and “Schedule III—Real Estate and Accumulated Depreciation,” included in this report.
In-Process Redevelopment Projects As of December 31, 2024, the following redevelopment projects were in the tenant improvement phase: Construction Start Date Estimated Stabilization Date (2) Estimated Rentable Square Feet % Leased Total Project Occupied (3) TENANT IMPROVEMENT (1) Location Office / Life Science San Francisco Bay Area 4400 Bohannon Drive Other Peninsula 4Q 2022 3Q 2025 48,000 —% —% San Diego 4690 Executive Drive University Towne Center 1Q 2022 3Q 2025 52,000 —% —% TOTAL: 100,000 —% —% ____________________ (1) Represents projects that have reached “cold shell condition” and are ready for tenant improvements, which may require additional major base building modifications before being placed in service.
In-Process Development Projects As of December 31, 2025, the following development project was in the tenant improvement phase: Construction Start Date Estimated Stabilization Date (2) Estimated Rentable Square Feet % Occupied % Leased PROJECT (1) Location Life Science Kilroy Oyster Point - Phase 2 South San Francisco 2Q 2021 1Q 2026 871,738 3% 44% TOTAL: 871,738 3% 44% ____________________ (1) Includes projects that have reached “cold shell condition” and are ready for tenant improvements, which may require additional major base building construction before being placed in service.
San Francisco Bay Area 18,167 234,892 2.3% 1.4% 2033 8.8 11 Box, Inc. San Francisco Bay Area 16,853 287,680 2.1% 1.7% 2028 3.5 12 Neurocrine Biosciences, Inc. (4) San Diego 16,365 299,064 2.1% 1.7% 2025 / 2029 / 2031 5.7 13 DIRECTV, LLC Los Angeles 16,085 532,956 2.0% 3.1% 2026 - 2027 2.7 14 Synopsys, Inc.
San Francisco Bay Area 16,853 287,680 2.2% 1.8% 2028 2.5 11 DIRECTV, LLC Los Angeles 16,085 532,956 2.1% 3.3% 2026 - 2027 (5) 1.7 12 Tandem Diabetes Care, Inc. San Diego 15,884 181,949 2.1% 1.1% 2035 9.3 13 Synopsys, Inc. San Francisco Bay Area 15,492 342,891 2.0% 2.1% 2030 4.7 14 Neurocrine Biosciences, Inc.
San Francisco Bay Area 15,492 342,891 2.0% 2.0% 2030 5.7 15 Viacom International, Inc. Los Angeles 13,718 220,330 1.7% 1.3% 2028 4.0 16 Indeed, Inc.
San Diego 14,397 273,021 1.9% 1.7% 2029 / 2031 5.2 15 Viacom International, Inc. Los Angeles 13,718 220,330 1.8% 1.4% 2028 3.0 16 Indeed, Inc.
Developable Square Feet / Resi Units (1) Los Angeles 1633 26th Street West Los Angeles 190,000 San Diego Santa Fe Summit South / North 56 Corridor 600,000 - 650,000 2045 Pacific Highway Little Italy 275,000 Kilroy East Village East Village 1,100 units San Francisco Bay Area Kilroy Oyster Point - Phases 3 and 4 South San Francisco 875,000 - 1,000,000 Flower Mart SOMA 2,300,000 Seattle SIX0 Denny Regrade 925,000 and 650 units Austin Stadium Tower Stadium District / Domain 493,000 ____________________ (1) Represents developable office/life science square feet and/or residential units.
Developable Square Feet / Residential Units (1) Los Angeles 1633 26th Street (2) West Los Angeles 190,000 San Diego Santa Fe Summit (2) 56 Corridor 600,000 - 650,000 2045 Pacific Highway Little Italy / Point Loma 275,000 Kilroy East Village East Village 1,100 units San Francisco Bay Area Kilroy Oyster Point - Phases 3 and 4 South San Francisco 875,000 - 1,000,000 Flower Mart San Francisco CBD 2,300,000 Seattle SIX0 Lake Union / Denny Regrade 925,000 and 650 units Austin Stadium Tower Stadium District / Domain 493,000 ____________________ (1) Project scope, including the estimated developable square feet or number of residential units, could change materially from estimates provided due to one or more of the following: significant changes in the economy, market conditions, tenant requirements and demands, construction costs, new supply, regulatory and entitlement processes, or project design.
Tenant Name (1) Region Annualized Base Rental Revenue (2) Rentable Square Feet (2) Percentage of Total Annualized Base Rental Revenue (2) Percentage of Total Rentable Square Feet Year(s) of Significant Lease Expiration(s) (3) Weighted Average Remaining Lease Term (Years) (in thousands) 1 Global technology company Seattle / San Diego $ 44,851 849,826 5.7% 5.0% 2032 - 2033 / 2037 8.6 2 Cruise LLC San Francisco Bay Area 35,449 374,618 4.5% 2.2% 2031 6.9 3 Stripe, Inc.
Both development sites are anticipated to close upon receipt of residential entitlements and permits, which is expected to occur in phases beginning in late 2026. 39 Significant Tenants The following table sets forth information about our 20 largest tenants based upon annualized base rental revenues, as defined below, as of December 31, 2025 : Tenant Name (1) Region Annualized Base Rental Revenue (in thousands) (2) Rentable Square Feet Percentage of Total Annualized Base Rental Revenue (2) Percentage of Total Rentable Square Feet Year(s) of Significant Lease Expiration(s) (3) Weighted Average Remaining Lease Term (Years) 1 Global technology company Seattle / San Diego $ 44,696 849,826 5.9% 5.2% 2032 - 2033 / 2037 7.6 2 Cruise LLC San Francisco Bay Area 35,449 374,618 4.6% 2.3% 2031 5.9 3 Stripe, Inc.
See further discussion of our lease expirations under “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations —Factors that May Influence Future Results of Operations”.
See further discussion of our lease expirations under “Item 1A. Risk Factors” and “Item 7.
San Francisco Bay Area 33,110 425,687 4.2% 2.5% 2034 9.5 4 Adobe Systems, Inc. San Francisco Bay Area / Seattle 27,897 522,879 3.5% 3.1% 2027 / 2031 6.4 5 LinkedIn Corporation / Microsoft Corporation San Francisco Bay Area 26,142 587,429 3.3% 3.4% 2026 1.7 6 Salesforce, Inc.
San Francisco Bay Area 33,110 425,687 4.3% 2.6% 2034 8.5 4 Adobe Systems, Inc. San Francisco Bay Area / Seattle 27,897 537,799 3.7% 3.3% 2027 (4) / 2031 5.4 5 Salesforce, Inc. San Francisco Bay Area / Seattle 24,706 472,988 3.2% 2.9% 2029 - 2030 / 2032 4.4 6 Okta, Inc.
As of December 31, 2024, the following properties were excluded from our stabilized portfolio: Number of Properties/Projects Estimated Rentable Square Feet (1) In-process redevelopment projects - tenant improvement 2 100,000 In-process development projects - under construction 1 875,000 ________________________ (1) Estimated rentable square feet upon completion.
As of December 31, 2025, the following properties and projects were excluded from our stabilized portfolio: Number of Properties / Projects Actual / Estimated Rentable Square Feet (1) Properties held for sale (2) 1 427,764 In-process development project - tenant improvement 1 871,738 ________________________ (1) For the property classified as held for sale, represents actual rentable square feet and consists of three buildings.
Austin 13,430 330,394 1.7% 1.9% 2034 10.0 17 Sony Interactive Entertainment, LLC San Francisco Bay Area 13,059 127,760 1.7% 0.7% 2030 5.3 18 Amazon.com (5) Seattle 12,921 340,705 1.6% 2.0% 2025 / 2030 4.3 19 Riot Games, Inc. Los Angeles 12,893 205,978 1.6% 1.2% 2026 / 2031 3.6 20 Tandem Diabetes Care, Inc.
Austin CBD 13,430 330,394 1.8% 2.0% 2034 9.0 17 Sony Group Corporation San Francisco Bay Area / Los Angeles 13,382 131,642 1.8% 0.8% 2030 4.2 18 Amazon.com Seattle 12,921 284,307 1.7% 1.7% 2030 4.1 19 Nektar Therapeutics, Inc. San Francisco Bay Area 12,297 135,974 1.6% 0.8% 2030 4.1 20 Splunk, Inc.
Excludes month-to-month leases, vacant space. ad leases with a lease term of less than one year, as of December 31, 2024. Includes 100% of the annualized base rental revenues of consolidated property partnerships. (3) We define significant lease expirations as those with space expiring greater than 25,000 rentable square feet.
Includes 100% of the annualized base rental revenues of consolidated property partnerships. (3) Significant lease expirations include those greater than 25,000 rentable square feet. (4) The 2027 lease expiration represents 31,840 rentable square feet that expires on June 30, 2027.
(5) The 2025 lease expiration represents 56,398 rentable square feet that expired on January 15, 2025. 47 The following pie chart sets forth the composition of our tenant base by industry as a percentage of our annualized base rental revenue based on the North American Industry Classification System as of December 31, 2024.
(5) The 2026 lease expiration represents 49,255 rentable square feet that expires on September 30, 2026, and the 2027 expiration represents the remaining 483,701 square feet that expires on September 30, 2027. 40 The following pie chart sets forth the composition of our tenant base by industry as a percentage of our annualized base rental revenue for our occupied square footage (excluding month-to-month and intercompany leases) based on the North American Industry Classification System as of December 31, 2025 : Our markets are dynamic and populated with innovative and creative tenants, including, but not limited to, technology, life science and healthcare, and media companies.
Additionally, the underlying leases contain various expense structures, including full service gross, modified gross, and triple net. Percentages represent percentage of total portfolio annualized contractual base rental revenue. (2) Includes 100% of annualized based rent of consolidated property partnerships..
Additionally, the underlying leases contain various expense structures including full service gross, modified gross, and triple net. Amounts represent percentage of total portfolio annualized contractual base rental revenue. Total is presented on a weighted average basis. Secured Debt As of December 31, 2025, the Operating Partnership had three outstanding mortgage notes payable which were secured by certain of our properties.
(2) For office and retail, represents the earlier of anticipated 95% occupancy date or one year from substantial completion of base building components. For multi-phase projects, interest and carry cost capitalization may cease and recommence driven by various factors, including tenant improvement construction and other tenant related timing or project scope.
(2) Represents the earlier of the date the project achieves 95% occupancy or one year from substantial completion of base building components.
In-Process Development Projects As of December 31, 2024, the following development project was under construction: Construction Start Date Estimated Stabilization Date (1) Estimated Rentable Square Feet % Leased UNDER CONSTRUCTION Location Office / Life Science San Francisco Bay Area Kilroy Oyster Point - Phase 2 South San Francisco 2Q 2021 1Q 2026 875,000 —% TOTAL: 875,000 —% ____________________ (1) For office and retail, represents the earlier of anticipated 95% occupancy date or one year from substantial completion of base building components.
Stabilized Redevelopment Projects During the year ended December 31, 2025, the following projects were added to our stabilized portfolio of operating properties: Construction Period Stabilization Date (1) Rentable Square Feet % Occupied % Leased PROJECT Location Start Date Completion Date 4400 Bohannon Drive Other Peninsula - San Francisco Bay Area 4Q 2022 3Q 2024 3Q 2025 48,414 —% —% 4690 Executive Drive University Towne Center - San Diego 1Q 2022 3Q 2024 3Q 2025 52,074 —% 47% TOTAL: 100,488 —% 24% ____________________ (1) Represents the earlier of the date the project achieves 95% occupancy or one year from substantial completion of base building components.
Removed
Office Properties The following table sets forth certain information relating to each of the stabilized office properties owned as of December 31, 2024.
Added
For the in-process development project in the tenant improvement phase, represents estimated rentable square feet upon completion. (2) See Note 4 “Dispositions and Held For Sale” to our consolidated financial statements included in this report for additional information.
Removed
Redevelopment will occur in phases based on existing lease expiration dates and timing of the tenant improvement build-out. (3) Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements.
Added
Commercial Real Estate Properties The following table sets forth certain information relating to each of the stabilized properties, excluding our stabilized residential properties, owned as of December 31, 2025 : Property Location No. of Buildings Year Built / Renovated Rentable Square Feet Percentage Occupied (1) Annualized Base Rent (in thousands) (2) Annualized Rent Per Square Foot (2) Los Angeles 335-345 North Maple Drive, Beverly Hills, California 1 1987 / 2017 306,366 77.5 % $ 18,322 $ 78.53 3101-3243 S.
Removed
The developable square feet and scope of projects could change materially from estimated data provided due to one or more of the following: any significant changes in the economy, market conditions, tenant requirements and demands, construction costs, new supply, regulatory and entitlement processes, or project design. 46 Significant Tenants The following table sets forth information about our 20 largest tenants based upon annualized base rental revenues, as defined below, as of December 31, 2024.
Added
(2) Subject to signed agreements and non-refundable deposits as of the date of this filing.
Removed
San Diego 12,409 143,850 1.6% 0.8% 2035 10.3 Total $ 423,449 7,191,075 53.6% 42.0% 6.0 _____________________ (1) Includes subsidiaries of tenant listed.
Added
San Francisco Bay Area 10,323 100,850 1.4% 0.6% 2031 5.9 Total $ 408,709 6,608,952 53.7% 40.5% 5.5 _____________________ (1) Includes subsidiaries of tenant listed. Excludes tenants at properties classified as held for sale.
Removed
(4) The 2025 lease expiration represents 26,043 rentable square feet expiring on June 30, 2025.
Added
Management’s Discussion and Analysis of Financial Condition and Results of Operations —Factors that May Influence Future Results of Operations” : Lease Expirations (1) (2) Year of Lease Expiration Number of Expiring Leases Total Square Feet % of Total Leased Square Feet Annualized Base Rent (in thousands) (3) % of Total Annualized Base Rent (3) Annualized Base Rent per Square Foot (3) Month-to-Month 26 27,459 N/A N/A N/A N/A 2026 69 1,049,430 8.0 % $ 49,033 6.4 % $ 46.72 2027 67 1,011,066 7.7 % 37,598 4.9 % 37.19 2028 70 1,244,652 9.4 % 77,264 10.1 % 62.08 2029 60 1,420,631 10.8 % 74,160 9.7 % 52.20 2030 67 1,718,698 13.1 % 103,707 13.6 % 60.34 2031 64 2,437,547 18.5 % 154,798 20.2 % 63.51 2032 19 1,253,284 9.5 % 83,313 10.9 % 66.48 2033 19 1,164,020 8.9 % 69,117 9.0 % 59.38 2034 18 683,426 5.2 % 45,643 6.0 % 66.79 2035 17 637,974 4.9 % 36,991 4.8 % 57.98 2036 and beyond 18 525,833 4.0 % 32,984 4.4 % 62.73 Total / Average 488 13,146,561 100.0 % $ 764,608 100.0 % $ 58.16 ____________________ (1) Represents all in-place leases as of December 31, 2025, excluding intercompany leases.
Removed
Our markets are dynamic and populated with innovative and creative tenants, including, but not limited to, technology, entertainment and digital media companies.
Added
(2) Includes 100% of annualized base rent of consolidated property partnerships.
Removed
Lease Expirations Year of Lease Expiration # of Expiring Leases Total Square Feet % of Total Leased Square Feet Annualized Base Rent (000’s) (1) (2) % of Total Annualized Base Rent (1) Annualized Rent per Square Foot (1) 2025 67 715,573 5.2 % $ 30,212 3.8 % $ 42.22 2026 74 1,934,525 14.0 % 93,174 11.8 % 48.16 2027 77 1,095,562 7.9 % 44,802 5.7 % 40.89 2028 58 1,160,992 8.4 % 71,467 9.1 % 61.56 2029 49 1,213,765 8.9 % 66,518 8.5 % 54.80 2030 55 1,661,615 12.0 % 98,690 12.5 % 59.39 2031 47 2,261,711 16.4 % 145,974 18.5 % 64.54 2032 17 1,125,182 8.2 % 74,380 9.4 % 66.10 2033 11 995,693 7.2 % 58,538 7.4 % 58.79 2034 19 710,620 5.1 % 47,932 6.2 % 67.45 2035 and beyond 19 919,502 6.7 % 55,870 7.1 % 60.76 Total (3) 493 13,794,740 100.0 % $ 787,557 100.0 % $ 57.09 ____________________ (1) Annualized base rent includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue.
Added
(3) Represents annualized monthly contractual rents from existing tenants in occupancy, including the impact of straight-lined rent escalations and the amortization of free rent periods and excluding the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below-market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue.
Removed
(3) For leases that have been renewed early with existing tenants, the expiration date and annualized base rent information presented takes into consideration the renewed lease terms.
Removed
Excludes leases not commenced as of December 31, 2024, space leased under month-to-month leases, storage leases, vacant space, leases with a lease term of less than one year, intercompany leases, and future lease renewal options not executed as of December 31, 2024.
Removed
Secured Debt As of December 31, 2024, the Operating Partnership had three outstanding mortgage notes payable which were secured by certain of our properties. Our secured debt represents an aggregate principal indebtedness of approximately $606.7 million. See additional information regarding our secured debt in “Item 7.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeAs of December 31, 2024, we were not a defendant in, and our properties were not subject to, any legal proceedings that we believe, if determined adversely to us, would have a material adverse effect upon our financial condition, results of operations, or cash flows.
Biggest changeAs of December 31, 2025, we were not a defendant in, and our properties were not subject to any legal proceedings that we believe, if determined adversely to us, would have a material adverse effect upon our financial condition, results of operations, or cash flows.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following table reports the distributions per common unit declared during the years ended December 31, 2024 and 2023. 2024 Per Unit Common Unit Distribution Declared First quarter $ 0.5400 Second quarter 0.5400 Third quarter 0.5400 Fourth quarter 0.5400 2023 Per Unit Common Unit Distribution Declared First quarter $ 0.5400 Second quarter 0.5400 Third quarter 0.5400 Fourth quarter 0.5400 51 PERFORMANCE GRAPH The following line graph compares the change in cumulative stockholder return on shares of the Company’s common stock to the cumulative total return of the FTSE Nareit All Equity REITs Index, the Standard & Poor’s (“S&P”) 500 Index, and the S&P Composite 1500 – Office REITs Index for the five-year period ended December 31, 2024.
Biggest changeThe following table reports the distributions per common unit declared during the years ended December 31, 2025 and 2024 : 2025 Per Unit Common Unit Distribution Declared First quarter $ 0.5400 Second quarter $ 0.5400 Third quarter $ 0.5400 Fourth quarter $ 0.5400 2024 Per Unit Common Unit Distribution Declared First quarter $ 0.5400 Second quarter $ 0.5400 Third quarter $ 0.5400 Fourth quarter $ 0.5400 44 PERFORMANCE GRAPH The following line graph compares the change in cumulative total return on shares of the Company’s common stock to the cumulative total return of the FTSE Nareit All Equity REITs Index, the Standard & Poor’s (“S&P”) 500 Index, and the S&P Composite 1500 – Office REITs Index for the five-year period ended December 31, 2025.
The following table illustrates dividends declared during 2024 and 2023 as reported on the NYSE. 2024 Per Share Common Stock Dividends Declared First quarter $ 0.5400 Second quarter 0.5400 Third quarter 0.5400 Fourth quarter 0.5400 2023 Per Share Common Stock Dividends Declared First quarter $ 0.5400 Second quarter 0.5400 Third quarter 0.5400 Fourth quarter 0.5400 The Company pays distributions to common stockholders quarterly each January, April, July, and October, at the discretion of the board of directors.
The following table illustrates dividends declared during 2025 and 2024 as reported on the NYSE : 2025 Per Share Common Stock Dividends Declared First quarter $ 0.5400 Second quarter $ 0.5400 Third quarter $ 0.5400 Fourth quarter $ 0.5400 2024 Per Share Common Stock Dividends Declared First quarter $ 0.5400 Second quarter $ 0.5400 Third quarter $ 0.5400 Fourth quarter $ 0.5400 The Company pays distributions to common stockholders quarterly each January, April, July, and October, at the discretion of the Board of Directors.
The graph assumes an investment of $100 in us and each of the indices on December 31, 2019 and, as required by the SEC, the reinvestment of all distributions. The return shown on the graph is not necessarily indicative of future performance.
The graph assumes an investment of $100 in us and each of the indices on December 31, 2020 and, as required by the SEC, the reinvestment of all distributions. The return shown on the graph is not necessarily indicative of future performance :
ITEM 5. MARKET FOR KILROY REALTY CORPORATION’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Company’s common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “KRC.” As of the date this report was filed, there were approximately 84 registered holders of the Company’s common stock.
ITEM 5. MARKET FOR KILROY REALTY CORPORATION’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Company’s common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “KRC.” As of February 6, 2026, there were approximately 78 registered holders of the Company’s common stock.
The Company did not purchase any equity securities during the three month period leading up to December 31, 2024. 50 MARKET FOR KILROY REALTY, L.P.’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES There is no established public trading market for the Operating Partnership’s common units.
The Company did not purchase any equity securities during the three months ended December 31, 2025. 43 MARKET FOR KILROY REALTY, L.P.’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES There is no established public trading market for the Operating Partnership’s common units.
As of the date this report was filed, there were 19 holders of record of common units (including through the Company’s general partnership interest).
As of February 6, 2026, there were 18 holders of record of common units (including through the Company’s general partnership interest).

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe following table reconciles the changes in the rentable square feet in our stabilized office portfolio of operating properties from December 31, 2023 to December 31, 2024: Number of Buildings Rentable Square Feet Total as of December 31, 2023 (1) 121 17,044,128 Acquisitions 2 103,731 Remeasurement — (5,138) Total as of December 31, 2024 (1) 123 17,142,721 ________________________ (1) Includes four properties owned by consolidated property partnerships (see Note 2 “Basis of Presentation and Significant Accounting Policies” to our consolidated financial statements included in this report for additional information). 71 Occupancy Information The following table sets forth certain information regarding our stabilized portfolio: Stabilized Portfolio Occupancy Region Number of Buildings Rentable Square Feet Occupancy at (1) 12/31/2024 12/31/2023 12/31/2022 Los Angeles 53 4,340,302 75.0 % 79.0 % 85.2 % San Diego 26 2,876,502 89.2 % 88.6 % 86.2 % San Francisco Bay Area 33 6,170,595 87.4 % 91.0 % 95.5 % Seattle 10 2,996,347 80.5 % 83.4 % 97.7 % Austin 1 758,975 74.7 % 64.9 % — % Total Stabilized Office Portfolio 123 17,142,721 82.8 % 85.0 % 91.6 % Average Occupancy Year Ended December 31, 2024 2023 Stabilized Portfolio (1) 83.9 % 87.3 % Same Store Portfolio (2) 84.4 % 87.4 % Residential Portfolio (3) 92.5 % 92.8 % _____________________ (1) Occupancy percentages reported are based on our stabilized portfolio as of the end of the period presented and exclude occupancy percentages of properties held for sale.
Biggest change(2) Represents a recalculation of a property's rentable square footage using updated industry measurement standards. 49 Occupancy Information The following table sets forth certain information regarding our stabilized portfolio, excluding our residential portfolio, as of the end of the period presented: Stabilized Portfolio Occupancy Region December 31, 2025 December 31, 2024 Buildings Rentable Square Feet Occupancy Buildings Rentable Square Feet Occupancy Los Angeles 52 4,242,386 75.1 % 53 4,340,302 75.0 % San Diego 28 2,728,209 83.7 % 26 2,876,502 89.2 % San Francisco Bay Area 30 5,564,971 86.2 % 33 6,170,595 87.4 % Seattle 10 2,997,623 80.0 % 10 2,996,347 80.5 % Austin 1 758,975 82.2 % 1 758,975 74.7 % Total 121 16,292,164 81.6 % 123 17,142,721 82.8 % The following table sets forth the average occupancy of certain property groups within our stabilized portfolio for the periods presented: Average Occupancy Year Ended December 31, 2025 2024 Stabilized Portfolio (1) 80.9 % 83.9 % Same Property Portfolio (1) (2) 81.4 % 83.8 % Residential Portfolio (3) 94.1 % 92.5 % _____________________ (1) Occupancy percentages reported are calculated as the average of the daily ending occupancy percentages for the period presented.
The Company believes the Operating Partnership’s sources of working capital, specifically its cash flows from operations and borrowings available under its unsecured revolving credit facility and funds from its capital recycling program, including strategic ventures, are adequate for it to make its distribution payments to the Company to make its dividend payments to its common stockholders for the next twelve months.
The Company believes the Operating Partnership’s sources of working capital, specifically its cash flows from operations, borrowings available under its unsecured revolving credit facility, and funds from its capital recycling program, including strategic ventures, are adequate for it to make its distribution payments to the Company to make dividend payments to its common stockholders for the next twelve months.
The Company evaluates the capital markets on an ongoing basis for opportunities to raise capital, and, as circumstances warrant, the Company and the Operating Partnership may issue securities of all of these types in one or more offerings at any time and from time to time on an opportunistic basis, depending upon, among other things, market conditions, available pricing, and capital needs.
The Company evaluates the capital markets on an ongoing basis for opportunities to raise capital, and, as circumstances warrant, the Company and the Operating Partnership may issue securities of all of these types in one or more offerings at any time and from time to time on an opportunistic basis, depending upon, among other things, market conditions, available pricing, and capital needs.
When the Company receives proceeds from the sales of its preferred or common stock, it generally contributes the net proceeds from those sales to the Operating Partnership in exchange for corresponding preferred or common partnership units of the Operating Partnership.
When the Company receives proceeds from the sales of its preferred or common stock, it generally contributes the net proceeds from those sales to the Operating Partnership in exchange for corresponding preferred or common partnership units of the Operating Partnership.
The Operating Partnership may use these proceeds and proceeds from the sale of its debt securities to repay debt, including borrowings under its unsecured revolving credit facility and unsecured term loan facility, to develop new or redevelop existing properties, to make acquisitions of properties or portfolios of properties, or for general corporate purposes.
The Operating Partnership may use these proceeds and proceeds from the sale of its debt securities to repay debt, including borrowings under its unsecured revolving credit facility and unsecured term loan facility, to develop new or redevelop existing properties, to make acquisitions of properties or portfolios of properties, or for general corporate purposes.
These events could result in the following: • Decreases in our cash flows from operations, which could create further dependence on the unsecured revolving credit facility; • An increase in the proportion of variable-rate debt, which could increase our sensitivity to interest rate fluctuations in the future; and • A decrease in the value of our properties, which could have an adverse effect on the Operating Partnership’s ability to incur additional debt, refinance existing debt at competitive rates, or comply with its existing debt obligations.
These events could result in the following: • A decrease in our cash flows from operations, which could create further dependence on the unsecured revolving credit facility; • An increase in the proportion of variable-rate debt, which could increase our sensitivity to interest rate fluctuations in the future; and • A decrease in the value of our properties, which could have an adverse effect on the Operating Partnership’s ability to incur additional debt, refinance existing debt at competitive rates, or comply with its existing debt obligations.
Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: • global market and general economic conditions, including periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; • adverse economic or real estate conditions generally, and specifically, in the States of California, Texas, and Washington; • risks associated with our investment in real estate assets, which are illiquid and with trends in the real estate industry; • defaults on or non-renewal of leases by tenants; • any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the entertainment industry, may have on our tenants’ businesses; • our ability to re-lease property at or above current market rates; • reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer’s office premises; 53 • costs to comply with government regulations, including environmental remediation; • the availability of cash for distribution and debt service, and exposure to risk of default under debt obligations; • increases in interest rates and our ability to manage interest rate exposure; • changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment, and acquisition opportunities and refinance existing debt; • a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices, or obtain or maintain debt financing, and which may result in write-offs or impairment charges; • significant competition, which may decrease the occupancy and rental rates of properties; • potential losses that may not be covered by insurance; • the ability to successfully complete acquisitions and dispositions on announced terms; • the ability to successfully operate acquired, developed, and redeveloped properties; • the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; • delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; • increases in anticipated capital expenditures, tenant improvement, and/or leasing costs; • defaults on leases for land on which some of our properties are located; • adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations or legislation, as well as business and consumer reactions to such changes; • risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers; • environmental uncertainties and risks related to natural disasters; • risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; and • our ability to maintain our status as a REIT.
Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others: • global market and general economic conditions, including actual and potential tariffs and periods of heightened inflation, and their effect on us and our tenants; • adverse economic or real estate conditions generally, and specifically, in the states of California, Texas, and Washington; • risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; • defaults on or non-renewal of leases by tenants; • any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the media industry, may have on our tenants’ businesses; • our ability to re-lease property at or above current market rates; • reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer’s office premises; • costs to comply with government regulations, including environmental remediation; • the availability of cash for distribution and debt service, and exposure to risk of default under debt obligations; 46 • increases in interest rates and our ability to manage interest rate exposure; • changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment, and acquisition opportunities and refinance existing debt; • a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices, or obtain or maintain debt financing, and which may result in write-offs or impairment charges; • significant competition, which may decrease the occupancy and rental rates of properties; • potential losses that may not be covered by insurance; • the ability to successfully complete acquisitions and dispositions on announced terms; • the ability to successfully operate acquired, developed, and redeveloped properties; • the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; • delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; • increases in anticipated capital expenditures, tenant improvement, and/or leasing costs; • defaults on leases for land on which some of our properties are located; • adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations or legislation, as well as business and consumer reactions to such changes; • risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers; • environmental uncertainties and risks related to natural disasters; • risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; and • our ability to maintain our status as a REIT.
The information in the table above reflects our projected interest rate obligations for these fixed-rate payments based on the contractual interest rates on an accrual basis and scheduled maturity dates. (4) As of December 31, 2024, 4.3% of our debt bore interest at variable rates which was incurred under the 2024 Term Loan Facility.
The information in the table above reflects our projected interest rate obligations for these fixed-rate payments based on the contractual interest rates on an accrual basis and scheduled maturity dates. (4) As of December 31, 2025, 4.3% of our debt bore interest at variable rates which was incurred under the 2024 Term Loan Facility.
Forward-looking statements include, among other things, statements or information concerning our plans, objectives, capital resources, portfolio performance, results of operations, projected future occupancy and rental rates, lease expirations, debt maturities, potential investments, strategies such as capital recycling, development and redevelopment activity, projected construction costs, projected construction commencement and completion dates, projected square footage of space that could be constructed on undeveloped land that we own, projected rentable square footage of or number of units in properties under construction or in the development pipeline, anticipated proceeds from capital recycling activity or other dispositions and anticipated dates of those activities or dispositions, projected increases in the value of properties, dispositions, future executive incentive compensation, pending, potential or proposed acquisitions, plans to grow our Net Operating Income and FFO, our ability to re-lease properties at or above current market rates, anticipated market conditions and demographics and other forward-looking financial data, as well as the discussion in “—Factors That May Influence Future Results of Operations,” “—Liquidity and Capital Resource of the Company,” and “—Liquidity and Capital Resources of the Operating Partnership.” Forward-looking statements can be identified by the use of words such as “believes,” “expects,” “projects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates”, or “anticipates” and the negative of these words and phrases and similar expressions that do not relate to historical matters.
Forward-looking statements include, among other things, statements or information concerning our plans, objectives, capital resources, portfolio performance, results of operations, projected future occupancy and rental rates, lease expirations, debt maturities, potential investments, strategies such as capital recycling, development and redevelopment activity, projected construction costs, projected construction commencement and completion dates, projected square footage of space that could be constructed on undeveloped land that we own, projected rentable square footage of or number of units in properties under construction or in the development pipeline, anticipated proceeds from capital recycling activity or other dispositions and anticipated dates of those activities or dispositions, projected increases in the value of properties, dispositions, future executive incentive compensation, pending, potential or proposed acquisitions, plans to grow our NOI and FFO, our ability to re-lease properties at or above current market rates, anticipated market conditions and demographics and other forward-looking financial data, as well as the discussion in “—Factors That May Influence Future Results of Operations,” “—Liquidity and Capital Resource of the Company,” and “—Liquidity and Capital Resources of the Operating Partnership.” Forward-looking statements can be identified by the use of words such as “believes,” “expects,” “projects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates”, or “anticipates” and the negative of these words and phrases and similar expressions that do not relate to historical matters.
Shelf Registration Statement The Company is a well-known seasoned issuer and the Company and the Operating Partnership have an effective shelf registration statement that provides for the public offering and sale from time to time by the Company of its preferred stock, common stock, depository shares, and guarantees of debt securities and by the Operating Partnership of its debt securities, in each case in unlimited amounts.
Shelf Registration Statement The Company is a well-known seasoned issuer and the Company and the Operating Partnership have an effective shelf registration statement that provides for the public offering and sale from time to time by the Company of its preferred stock, common stock, depository shares, warrants, and guarantees of debt securities and by the Operating Partnership of its debt securities, in each case in unlimited amounts.
We may be entitled to a temporary 0.01% reduction in the interest rate provided we meet certain sustainability goals with respect to the ongoing reduction of greenhouse gas emissions. (3) Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity.
We may be entitled to a temporary 0.01% reduction in the interest rate provided we meet certain sustainability goals with respect to the ongoing reduction of greenhouse gas emissions. (3) Our annual facility fee is paid on a quarterly basis and is calculated based on total borrowing capacity.
The Company intends to continue to make, but has not committed to make, regular quarterly cash distributions to common stockholders, and through the Operating Partnership, to common unitholders from the Operating Partnership’s cash flows from operating activities. All such distributions are at the discretion of the Board of Directors .
The Company intends to continue to make, but has not committed to making, regular quarterly cash distributions to common stockholders, and through the Operating Partnership, to common unitholders from the Operating Partnership’s cash flows from operating activities. All such distributions are at the discretion of the Board of Directors .
Investing Activities Our cash flows from investing activities are generally used to fund development and operating property acquisitions, expenditures for development and redevelopment projects, and recurring and nonrecurring capital expenditures for our operating properties, net of proceeds received from dispositions of real estate assets.
Investing Activities Our cash flows from investing activities are generally used to fund development and operating property acquisitions, expenditures for development and redevelopment projects, recurring and nonrecurring capital expenditures for our operating properties, and include net proceeds received from dispositions of real estate assets.
Distribution Requirements For a discussion of our dividend and distribution requirements, see “Liquidity and Capital Resources of the Company —Distribution Requirements.” 89 Factors That May Influence Future Sources of Capital and Liquidity of the Company and the Operating Partnership We continue to evaluate sources of financing for our business activities, including borrowings under the unsecured revolving credit facility, the unsecured term loan facility, issuance of public and private equity securities, unsecured debt and fixed-rate secured mortgage financing, proceeds from the disposition of selective assets through our capital recycling program, and the formation of strategic ventures.
Distribution Requirements For a discussion of our dividend and distribution requirements, see “Liquidity and Capital Resources of the Company —Distribution Requirements.” 69 Factors That May Influence Future Sources of Capital and Liquidity of the Company and the Operating Partnership We continue to evaluate sources of financing for our business activities, including borrowings under the unsecured revolving credit facility, the unsecured term loan facility, issuance of public and private equity securities, unsecured debt and fixed-rate secured mortgage financing, proceeds from the disposition of selective assets through our capital recycling program, and the formation of strategic ventures.
The section entitled “Liquidity and Capital Resources of the Operating Partnership” should be read in conjunction with this section to understand the liquidity and capital resources of the Company on a consolidated basis and how the Company is operated as a whole.
The section entitled “Liquidity and Capital Resources of the Operating Partnership” should be read in conjunction with 61 this section to understand the liquidity and capital resources of the Company on a consolidated basis and how the Company is operated as a whole.
We assume no obligation to update any forward-looking statement that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws. 54 Company Overview We are a self-administered REIT active in premier office, life science, and mixed-use property types in the United States.
We assume no obligation to update any forward-looking statement that becomes untrue because of subsequent events, new information, or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws. 47 Company Overview We are a self-administered REIT active in premier office, life science, and mixed-use property types in the United States.
New Accounting Pronouncements For a discussion of new accounting pronouncements see Note 2 “Basis of Presentation and Significant Accounting Policies” to our consolidated financial statements included in this report.
New Accounting Pronouncements For a discussion of new accounting pronouncements see Note 2 “Basis of Presentation and Significant Accounting Policies” to our consolidated financial statements included in this report. 77
The table: (i) indicates the maturities and scheduled principal repayments of our secured and unsecured debt outstanding as of December 31, 2024; (ii) indicates the scheduled interest payments of our fixed-rate and variable-rate debt as of December 31, 2024; (iii) provides information about the minimum commitments due in connection with our ground lease obligations and other lease and contractual commitments; and (iv) provides estimated in-process and recently completed development commitments as of December 31, 2024.
The table: (i) indicates the maturities and scheduled principal repayments of our secured and unsecured debt outstanding as of December 31, 2025; (ii) indicates the scheduled interest payments of our fixed-rate and variable-rate debt as of December 31, 2025; (iii) provides information about the minimum commitments due in connection with our ground lease obligations and other lease and contractual commitments; and (iv) provides estimated in-process and recently completed development commitments as of December 31, 2025.
See Note 19 “Commitments and Contingencies” to our consolidated financial statements included in this report for further information about our ground lease obligations. (6) Amounts represent cash commitments under signed leases and contracts for operating properties, excluding tenant-funded tenant improvements, and for other contractual commitments. The timing of these expenditures may fluctuate.
See Note 17 “Commitments and Contingencies” to our consolidated financial statements included in this report for further information about our ground lease obligations. (6) Amounts represent cash commitments under signed leases and contracts for operating properties, excluding tenant-funded tenant improvements, and for other contractual commitments. The timing of these expenditures may fluctuate.
Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements. (2) Occupancy percentages reported are based on properties owned and stabilized as of January 1, 2023 and still owned and stabilized as of December 31, 2024 and exclude our residential portfolio. See discussion under “Results of Operations” for additional information.
Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements. (2) Occupancy percentages reported are based on properties owned and stabilized as of January 1, 2024 and still owned and stabilized as of December 31, 2025, and exclude our residential portfolio. See discussion under “Results of Operations” for additional information.
(7) Amounts represent commitments under signed leases for pre-leased development and redevelopment projects and contractual commitments for projects in the tenant improvement phase and under construction as of December 31, 2024. The timing of these expenditures may fluctuate based on the ultimate progress of construction. We may start additional construction in 2025 (see “—Development” for additional information).
(7) Amounts represent commitments under signed leases for pre-leased development and redevelopment projects and contractual commitments for projects in the tenant improvement phase and under construction as of December 31, 2025. The timing of these expenditures may fluctuate based on the ultimate progress of construction. We may start additional construction in 2026 (see “—Development” for additional information).
However, in the event of an economic slowdown or continued volatility in the credit markets, there is no certainty that the Operating Partnership will be able to continue to satisfy all the covenant requirements. 90 Consolidated Historical Cash Flows Summary The following summary discussion of our consolidated historical cash flows is based on the consolidated statements of cash flows in Item 15.
However, in the event of an economic slowdown or continued volatility in the credit markets, there is no certainty that the Operating Partnership will be able to continue to satisfy all the covenant requirements. 70 Consolidated Historical Cash Flows Summary The following summary discussion of our consolidated historical cash flows is based on the consolidated statements of cash flows in Item 15.
The information in the table above reflects our projected interest rate obligations for those variable-rate payments based on the outstanding principal balance as of December 31, 2024, the scheduled payment interest payment dates and the contractual maturity date. (5) Reflects minimum lease payments through the contractual lease expiration date before the impact of extension options.
The information in the table above reflects our projected interest rate obligations for those variable-rate payments based on the outstanding principal balance as of December 31, 2025, the scheduled payment interest payment dates, and the contractual maturity date. (5) Reflects minimum lease payments through the contractual lease expiration date before the impact of extension options.
The following tables set forth certain information regarding our lease expirations for our stabilized portfolio, excluding our residential properties, for the next five years and by region for the next two years. Lease Expirations (1)(2) Year of Lease Expiration Number of Expiring Leases Total Square Feet % of Total Leased Sq. Ft.
The following tables set forth certain information regarding our scheduled lease expirations for our stabilized portfolio, excluding our residential properties, and by region for the next two years : Lease Expirations (1) (2) Year of Lease Expiration Number of Expiring Leases Total Square Feet % of Total Leased Sq. Ft.
As the Company intends to maintain distributions at a level sufficient to meet the REIT distribution requirements and minimize its obligation to pay income and excise taxes, it will continue to evaluate whether the current levels of distribution are appropriate to do so throughout 2025.
As the Company intends to maintain distributions at a level sufficient to meet the REIT distribution requirements and minimize its obligation to pay income and excise taxes, it will continue to evaluate whether the current levels of distribution are appropriate to do so throughout 2026.
When we conclude that the tenant is the owner of certain tenant improvements for accounting purposes, we record our contribution towards those tenant-owned improvements as a lease incentive, which is included in deferred leasing costs and acquisition-related intangible assets, net on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the related lease beginning upon substantial completion of the leased premises.
When we conclude that the tenant is the owner of certain tenant improvements, we record our contribution towards those tenant-owned improvements as a lease incentive, which is included in deferred leasing costs and acquisition-related intangible assets, net on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the related lease beginning upon substantial completion of the leased premises.
We have a proactive planning process by which we continually evaluate the size, timing, costs, and scope of our development and redevelopment programs and, as necessary, scale activity to reflect the economic conditions and the real estate fundamentals that exist in our submarkets.
We have a proactive planning process by which we continually evaluate the size, timing, costs, and scope of our development and redevelopment projects and, as necessary, scale activity to reflect the economic conditions and the real estate fundamentals that exist in our submarkets.
The Operating Partnership may redeem the notes at any time, either in whole or in part, subject to the payment of an early redemption premium with respect to redemptions prior to October 15, 2035. On or after October 15, 2035, the Operating Partnership may redeem the notes at any time, either in whole or in part, at par.
The Operating Partnership may redeem the notes at any time, either in whole or in part, subject to the payment of an early redemption premium with respect to redemptions prior to July 15, 2035. On or after July 15, 2035, the Operating Partnership may redeem the notes at any time, either in whole or in part, at par.
Our stabilized portfolio includes all of our properties with the exception of development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, undeveloped land, and real estate assets held for sale.
Our stabilized portfolio includes all of our properties with the exception of development and redevelopment properties currently committed for construction, under construction, or in the tenant improvement phase, undeveloped land, and real estate assets held for sale, if any.
General Our primary liquidity sources and uses are as follows: Liquidity Sources • Net cash flows from operations; • Borrowings under the Operating Partnership’s unsecured revolving credit facility; • Proceeds from our capital recycling program, including the disposition of assets and the formation of strategic ventures; • Proceeds from additional secured or unsecured debt financings; and • Proceeds from public or private issuance of debt, equity or preferred equity securities.
General Our primary liquidity sources and uses are as follows: Liquidity Sources • Net cash flows from operations; • Proceeds from our capital recycling program, including the disposition of assets and the formation of strategic ventures; • Proceeds from additional secured or unsecured debt financings; • Borrowings under the Operating Partnership’s unsecured revolving credit facility; and • Proceeds from equity or preferred equity securities.
However, FFO should not be viewed as an alternative measure of our operating performance because 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 our properties, which are significant economic costs and could materially impact our results from operations.
FFO should not be viewed as an alternative measure of our 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 our properties, which are significant economic costs and could materially impact our results from operations.
Additionally, the underlying leases contain various expense structures, including full service gross, modified gross, and triple net. Percentages represent percentage of total portfolio annualized contractual base rental revenue.
Additionally, the underlying leases contain various expense structures, including full service gross, modified gross, and triple net. Amounts represent percentage of total portfolio annualized contractual base rental revenue.
Management’s Discussion and Analysis of Financial Condition and Results of Operations –Results of Operations” in our Form 10-K for the year ended December 31, 2023 for a discussion of the year ended December 31, 2023 compared to the year ended December 31, 2022. 77 Liquidity and Capital Resources of the Company In this “Liquidity and Capital Resources of the Company” section, the term the “Company” refers only to Kilroy Realty Corporation on an unconsolidated basis and excludes the Operating Partnership and all other subsidiaries.
Management’s Discussion and Analysis of Financial Condition and Results of Operations –Results of Operations” in our Form 10-K for the year ended December 31, 2024 for a discussion of the year ended December 31, 2024 compared to the year ended December 31, 2023. 60 Liquidity and Capital Resources of the Company In this “Liquidity and Capital Resources of the Company” section, the term the “Company” refers only to Kilroy Realty Corporation on an unconsolidated basis and excludes the Operating Partnership and all other subsidiaries.
Cash flows from operating activities generated by the Operating Partnership for the year ended December 31, 2024 were sufficient to cover the Company’s payment of cash dividends to its stockholders.
Cash flows from operating activities generated by the Operating Partnership for the year ended December 31, 2025 were sufficient to cover the Company’s payment of cash dividends to its stockholders.
However, our ability to obtain new financing or refinance existing borrowings on favorable terms could be impacted by various factors, including the state of the macro economy, the state of the credit and equity markets, significant tenant defaults, a decline in the demand for office properties, a decrease in market rental rates or market values of real estate assets in our submarkets, the amount of our future borrowings and uncertainty related to interest rates, inflation rates, geopolitical events, and other factors (refer to “Part I, Item IA.
However, our ability to obtain new financing or refinance existing borrowings on favorable terms could be impacted by various factors, including the state of the macroeconomy, the state of the credit and equity markets, significant tenant defaults, a decline in the demand for commercial real estate properties, a decrease in market rental rates or market values of real estate assets in our submarkets, the amount of our future borrowings and uncertainty related to interest rates, inflation rates, geopolitical events, and other factors (refer to “Part I, Item IA.
Liquidity Uses • Property operating and corporate expenses; • Capital expenditures, tenant improvements, and leasing costs; • Development and redevelopment costs; • Operating property or undeveloped land acquisitions; • Debt service and principal payments, including debt maturities; • Distributions to common security holders; • Repurchases and redemptions of outstanding common stock of the Company; and • Outstanding debt repurchases, redemptions and repayments.
Liquidity Uses • Debt service and principal payments, including debt maturities, debt repurchases, and redemptions; • Capital expenditures, tenant improvements, and leasing costs; • Development and redevelopment costs; • Operating property or undeveloped land acquisitions; • Distributions to common security holders; and • Repurchases and redemptions of outstanding common stock of the Company.
Our current expectation is that the Operating Partnership will continue to meet the requirements of its debt covenants in both the short and long term.
Our current expectation is that the Operating Partnership will continue to meet the requirements of its financial covenants in both the short and long term.
We believe our conservative leverage and staggered debt maturities provide us with financial flexibility and enhance our ability to obtain additional sources of liquidity if necessary, and, therefore, we are well-positioned to refinance or repay maturing debt and to pursue our strategy of seeking attractive acquisition opportunities, which we may finance, as necessary, with future public and private issuances of debt and equity securities, although there can be no assurance in this regard. 81 2024 Capital and Financing Transactions We continue to be active in the capital markets to finance potential acquisitions and our development activity, as well as our continued desire to extend our debt maturities.
We believe our disciplined capital structure and staggered debt maturities provide us with financial flexibility and enhance our ability to obtain additional sources of liquidity if necessary, and, therefore, we are well-positioned to refinance or repay maturing debt and to pursue our strategy of seeking attractive acquisition opportunities, which we may finance, as necessary, with future public and private issuances of debt and equity securities, although there can be no assurance in this regard. 2025 Capital and Financing Transactions We continue to be active in the capital markets to finance potential acquisitions and our development activity, as well as our continued desire to extend our debt maturities.
Because of the exclusion of the items shown in the reconciliation below, Net Operating Income should only be used as a supplemental measure of our financial performance and not as an alternative to GAAP income from operations or net income.
Because of the exclusion of the items shown in the reconciliation below, Net Operating Income should only be used as a supplemental measure of our financial performance and not as an alternative to GAAP net income.
We own, develop, acquire, and manage real estate assets, consisting primarily of premier properties in Los Angeles, San Diego, the San Francisco Bay Area, Seattle and Austin, which are markets that we believe have strategic advantages and strong barriers to entry.
We own, develop, acquire, and manage real estate assets, consisting primarily of premier office and life science properties in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin, which are markets we believe have strategic advantages and strong barriers to entry.
We focus on growth opportunities primarily in markets populated by knowledge and creative based tenants in a variety of industries, including technology, media, healthcare, life sciences, entertainment, and professional services.
We focus on growth opportunities primarily in markets populated by knowledge and creative-based tenants in a variety of industries, including technology, media, healthcare, life sciences, and business services.
The regular quarterly cash dividend is payable to stockholders of record on December 31, 2024 and a corresponding cash distribution of $0.54 per Operating Partnership unit is payable to holders of the Operating Partnership’s common limited partnership interests of record on December 31, 2024, including those owned by the Company.
The regular quarterly cash dividend was payable to stockholders of record on December 31, 2025 and a corresponding cash distribution of $0.54 per Operating Partnership unit was payable to holders of the Operating Partnership’s common limited partnership interests of record on December 31, 2025, including those owned by the Company.
(2) Represents gross aggregate principal amount before the effect of the unamortized discount and deferred financing costs of approximately $8.4 million and $17.0 million as of December 31, 2024. As of December 31, 2024, there was no outstanding balance on our unsecured revolving credit facility. (3) As of December 31, 2024, 95.7% of our debt was contractually fixed.
(2) Represents gross aggregate principal amount before the effect of the unamortized discount and deferred financing costs of approximately $11.0 million and $17.2 million as of December 31, 2025. As of December 31, 2025, there was no outstanding balance on our unsecured revolving credit facility. (3) As of December 31, 2025, 95.7% of our debt was contractually fixed.
In 2024, the Company’s distributions exceeded 100% of its taxable income, resulting in a return of capital to its stockholders (see Note 25 “Tax Treatment of Distributions” to our consolidated financial statements included in this report for additional information).
In 2025, the Company’s distributions exceeded 100% of its taxable income, resulting in a return of capital to its stockholders (See Note 22 “Tax Treatment of Distributions” to our consolidated financial statements included in this report for additional information).
For these tenant-funded tenant improvements, we record the amount funded by or reimbursed by tenants as deferred revenue, which is amortized and recognized as rental income on a straight-line basis over the term of the related lease beginning upon substantial completion of the leased premises.
When we conclude we are the owner these tenant-funded tenant improvements, we record the amount funded by or reimbursed by tenants as deferred revenue, which is amortized and recognized as rental income on a straight-line basis over the term of the related lease beginning upon substantial completion of the leased premises.
(6) Represents leases commenced or executed at space not previously leased, recently completed development projects that have been added to the stabilized portfolio, at space in the stabilized portfolio for which we are incurring significant non-recurring capital expenditures to reposition and is expected to result in additional revenue generated when re-leased, and at projects in our development and redevelopment portfolios.
(6) Represents leases executed at space not previously leased, space that was vacant when the property was acquired, recently completed development projects that have been added to the stabilized portfolio, at space in the stabilized portfolio for which we are incurring significant non-recurring capital expenditures to reposition and is expected to result in additional revenue generated when re-leased, and at projects in our development and redevelopment portfolios.
(2) Our unsecured revolving credit facility interest rate was calculated using the Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment of 0.10% (“Adjusted SOFR”) and a margin of 1.100% and 0.900% based on our credit rating as of December 31, 2024 and 2023, respectively.
(2) Our unsecured revolving credit facility interest rate was calculated using the Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment of 0.10% (together, “Adjusted SOFR”) and a margin of 1.100% based on our credit rating as of December 31, 2025 and 2024.
For leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, including deferred revenue, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination.
For leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) cash received, or (ii) the amount recognized on a straight-line basis with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination.
Excludes leases commenced at space not previously leased at recently completed development projects that have been added to the stabilized portfolio and at space in the stabilized portfolio for which we are incurring significant non-recurring capital expenditures to reposition and is expected to result in additional revenue generated when re-leased.
Excludes leases executed at space that was vacant when the property was acquired, space not previously leased at recently completed development projects that have been added to the stabilized portfolio, and space in the stabilized portfolio for which we are incurring significant non-recurring capital expenditures to reposition and is expected to result in additional revenue generated when re-leased.
Such investments may include, for example, obligations of the Government National Mortgage Association, other governmental agency securities, certificates of deposit, and interest-bearing bank deposits. On December 5, 2024, the Board of Directors declared a regular quarterly cash dividend of $0.54 per share of common stock.
Such investments may include, for example, obligations of the Government National Mortgage Association, other governmental agency securities, certificates of deposit, and interest-bearing bank deposits. On November 18, 2025, the Board of Directors declared a regular quarterly cash dividend of $0.54 per share of common stock.
The amount of net rental income generated by our properties depends principally on our ability to maintain the occupancy rates of currently leased space and to lease currently available space, newly developed or redeveloped properties, newly acquired properties with vacant space, and space available from unscheduled lease terminations.
The amount of rental income generated by our properties depends principally on our ability to maintain the occupancy rates of currently leased space and to lease currently available space, including sublease space, newly developed or redeveloped properties and newly acquired properties with vacant space.
In addition, in the event the Company completes additional dispositions in the future and is unable to successfully complete Section 1031 Exchanges to defer some or all of the taxable gains related to property dispositions (or in the event additional legislation is enacted that further modifies or repeals laws with respect to Section 1031 Exchanges), the Company may be required to distribute a special dividend to its common stockholders and common unitholders in order to minimize or eliminate income taxes on such gains.
In addition, in the event the Company completes additional dispositions in the future and is unable to successfully complete Section 1031 Exchanges to defer some or all of the taxable gains related to property dispositions, the Company may be required to distribute a special dividend to its common stockholders and common unitholders in order to minimize or eliminate income taxes on such gains.
We own our interests in all of our real estate assets through the Operating Partnership and conduct substantially all of our operations through the Operating Partnership. We owned an approximate 99.0% general partnership interest in the Operating Partnership as of both December 31, 2024 and 2023.
We own our interests in all of our real estate assets through the Operating Partnership and conduct substantially all of our operations through the Operating Partnership. We owned an approximate 99.1% and 99.0% common general partnership interest in the Operating Partnership as of December 31, 2025 and 2024, respectively.
The variable interest rate payments are based on the contractual rate of Adjusted SOFR plus a margin of 1.2% as of December 31, 2024.
The variable interest rate payments are based on the contractual rate of Adjusted SOFR plus a margin of 1.200% as of December 31, 2025.
For these asset acquisitions, we record the acquired tangible and intangible assets and assumed liabilities based on each asset’s and liability’s relative fair value at the acquisition date of the total purchase price plus any capitalized acquisition costs, including costs incurred during negotiation.
For these asset acquisitions, we record the acquired tangible and intangible assets and assumed liabilities based on each asset’s and liability’s relative fair value compared to the total purchase price plus any capitalized closing costs, including costs incurred during negotiation.
The following table summarizes the balance and terms of our 2024 Term Loan Facility as of December 31, 2024: 2024 Term Loan Facility December 31, 2024 (in thousands) Outstanding borrowings $ 200,000 Remaining borrowing capacity — Total borrowing capacity (1) $ 200,000 Interest rate (2) 5.70 % Maturity date (3) October 3, 2025 _______________ (1) We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $130.0 million as of December 31, 2024, under an accordion feature pursuant to the terms of the 2024 Term Loan Facility.
The following table summarizes the balance and terms of our 2024 Term Loan Facility: 2024 Term Loan Facility December 31, 2025 December 31, 2024 ($ in thousands) Outstanding borrowings (1) $ 200,000 $ 200,000 Interest rate (2) 5.02 % 5.70 % Unamortized deferred financing costs (3) $ 277 $ 1,229 Maturity date (4) October 3, 2026 October 3, 2025 _______________ (1) We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $130.0 million, under an accordion feature pursuant to the terms of the 2024 Term Loan Facility.
Annualized Base Rent (3) % of Total Annualized Base Rent (3) Annualized Base Rent per Sq. Ft.
Annualized Base Rent (in thousands) (3) % of Total Annualized Base Rent (3) Annualized Base Rent per Sq. Ft.
Ft. Annualized Base Rent (3) % of Total Annualized Base Rent (3) Annualized Rent per Sq. Ft.
Ft. Annualized Base Rent (in thousands) (3) % of Total Annualized Base Rent (3) Annualized Base Rent per Sq. Ft.
Such assessment involves using a methodology that incorporates a specific identification analysis and an aging analysis, considering the current economic and business environment, including factors such as the age and nature of the receivables, the payment history and financial condition of the tenant, our assessment of the tenant’s ability to meet its lease obligations, and the status of negotiations of any disputes with the tenant.
This assessment incorporates specific identification and aging analyses, considering the current economic and business environment, including factors such as the age and nature of the receivables, tenant payment history and financial condition, our assessment of the tenant’s ability to meet its lease obligations, and the status of negotiations of any disputes with the tenant.
All of our properties are held in fee except for the fourteen office buildings that are held subject to long-term ground leases for the land (see Note 19 “Commitments and Contingencies” to our consolidated financial statements included in this report for additional information regarding our ground lease obligations). 2024 Operating and Development Highlights Throughout 2024, we remained focused on creating value for our stockholders through leasing, and development and redevelopment activities.
All of our properties are held in fee except for the fourteen office buildings that are held subject to long-term ground leases for the land (see Note 17 “Commitments and Contingencies” to our consolidated financial statements included in this report for additional information regarding our ground lease obligations). 2025 Operational Highlights Throughout 2025, we remained focused on creating value for our stockholders through leasing and strategic capital allocation.
The outstanding balance of the unsecured senior notes is included in unsecured debt, net of an initial issuance discount of $4.5 million, on our consolidated balance sheets. The unsecured senior notes, which are scheduled to mature on January 15, 2036, require semi-annual interest payments each January and July based on a stated annual interest rate of 6.250%.
The outstanding balance of the unsecured senior notes is included in unsecured debt, net of an initial issuance discount of $4.0 million, on our consolidated balance sheets. The unsecured senior notes, which are scheduled to mature on October 15, 2035, require semi-annual interest payments each April and October based on a stated annual interest rate of 5.875%.
The following table summarizes the balance and terms of our unsecured revolving credit facility as of December 31, 2024 and 2023: December 31, 2024 December 31, 2023 (in thousands) Outstanding borrowings $ — $ — Remaining borrowing capacity (1) 1,100,000 1,100,000 Total borrowing capacity (1) $ 1,100,000 $ 1,100,000 Interest rate (2) 5.69 % 6.38 % Facility fee-annual rate (3) 0.250% 0.200% Maturity date (4) July 31, 2028 July 31, 2025 ______________________ (1) Remaining and total borrowing capacity are further reduced by the amount of our outstanding letters of credit which total approximately $5.2 million as of December 31, 2024 and December 31, 2023.
Unsecured Revolving Credit Facility and Term Loan Facility The following table summarizes the balance and terms of our unsecured revolving credit facility: Unsecured Revolving Credit Facility December 31, 2025 December 31, 2024 ($ in thousands) Outstanding borrowings $ — $ — Remaining borrowing capacity (1) 1,100,000 1,100,000 Total borrowing capacity (1) $ 1,100,000 $ 1,100,000 Interest rate (2) 5.07 % 5.69 % Annual facility fee (3) 0.250% Unamortized deferred financing costs (3) $ 9,150 $ 12,692 Maturity date (4) July 31, 2028 ______________________ (1) Remaining and total borrowing capacity are further reduced by the amount of our outstanding letters of credit which total approximately $5.2 million as of December 31, 2025 and December 31, 2024.
Deferred rent receivables represent the amount by which the cumulative straight-line rental revenue recorded to date exceeds cash rents billed to date under the lease agreement. 58 We carry our current and deferred rent receivables net of allowances for amounts that may not be collected.
Deferred rent receivables represent the excess of cumulative straight-line rental revenue recorded to date over cash rents billed to date under the lease agreement. We carry our current and deferred rent receivables net of allowances for amounts that may not be collected, which are adjusted through rental income.
For further discussion of our significant accounting policies, see Note 2 “Basis of Presentation and Significant Accounting Policies” to our consolidated financial statements included in this report. Revenue Recognition Rental revenue for office, life science, retail, and residential operating properties is our principal source of revenue.
Our significant accounting policies, which utilize these critical accounting estimates, are described in Note 2 “Basis of Presentation and Significant Accounting Policies” to our consolidated financial statements included in this report. Revenue Recognition Rental revenue for office, life science, retail, and residential operating properties is our principal source of revenue.
Additional rent where we pay the associated costs directly to third-party vendors and are reimbursed by our tenants are recognized and recorded on a gross basis, with the associated expense recognized in property expenses or real estate taxes. Calculating additional rent requires an in-depth analysis of the complex terms of each underlying lease.
Additional rent where we pay the associated costs directly to third-party vendors and are reimbursed by our tenants are recognized and recorded on a gross basis, with the associated expense recognized in property expenses or real estate taxes.
At-The-Market Stock Offering Program In March 2024, the Company terminated its prior at-the-market (“ATM”) stock offering program and commenced a new at-the-market stock offering program (the “2024 ATM Program”), under which we may currently offer and sell shares of our common stock having an aggregate gross sales price up to $500.0 million from time to time in “at-the-market” offerings.
At-The-Market Stock Offering Program Under our current at-the-market stock offering program (the “2024 ATM Program”), we may currently offer and sell shares of our common stock having an aggregate gross sales price up to $500.0 million from time to time in “at-the-market” offerings.
We define “Net Operating Income” as consolidated operating revenues (rental income and other property income) less consolidated operating expenses (property expenses, real estate taxes and ground leases).
We define “Net Operating Income” as revenues less lease termination fees and consolidated operating expenses (property expenses, real estate taxes and ground leases).
(6) Includes common units of the Operating Partnership not owned by the Company; does not include noncontrolling interests in consolidated property partnerships. 80 Liquidity and Capital Resources of the Operating Partnership In this “Liquidity and Capital Resources of the Operating Partnership” section, the terms “we,” “our,” and “us” refer to the Operating Partnership or the Operating Partnership and the Company together, as the context requires.
Excludes noncontrolling interests in consolidated property partnerships. 63 Liquidity and Capital Resources of the Operating Partnership In this “Liquidity and Capital Resources of the Operating Partnership” section, the terms “we,” “our,” and “us” refer to the Operating Partnership or the Operating Partnership and the Company together, as the context requires.
The ultimate timing of these expenditures may fluctuate given construction progress and leasing status of the projects, or as a result of events outside our control, such as delays or increased costs as a result of heightened inflation and market conditions.
Development We believe we may spend between $150 million to $200 million on development projects throughout 2026. The ultimate timing of these expenditures may fluctuate given construction progress and leasing status of the projects, or as a result of events outside our control, such as delays or increased costs as a result of heightened inflation and market conditions.
The Share Repurchase Program does not have a termination date and repurchases may be discontinued at any time.
The Share Repurchase Program does not have a termination date and repurchases may be discontinued at any time. Since commencement of the Share Repurchase Program, we have not completed any common stock repurchases.
If any impairment indicators are present for a specific real estate asset, we then perform an undiscounted cash flow analysis and compare the net carrying amount of the real estate asset to the real estate asset’s estimated undiscounted future cash flows over the anticipated holding period.
If we determine that impairment indicators are present for a specific real estate asset, we compare the asset’s net carrying amount to its estimated undiscounted future cash flows over the anticipated holding period.
Management further evaluates Net Operating Income by evaluating the performance from the following property groups: • Same Store Properties – includes the consolidated results of all of the properties that were owned and included in our stabilized portfolio for two comparable reporting periods, i.e., owned and included in our stabilized portfolio as of January 1, 2023 and still owned and included in the stabilized portfolio as of December 31, 2024, including our three residential properties in Hollywood and Del Mar, California; • Development Properties – includes the results generated by certain of our in-process development and redevelopment projects, expenses for certain of our future development projects, and the results generated by the following stabilized development properties: ◦ One office building that was added to the stabilized portfolio in the third quarter of 2023; and ◦ One office building that was added to the stabilized portfolio in the fourth quarter of 2023; • Acquisition Properties – includes the results, from the date of acquisition through the periods presented, for the one property acquired in the third quarter of 2024; The following table sets forth certain information regarding the property groups within our stabilized office portfolio as of December 31, 2024.
Management further evaluates Net Operating Income by evaluating the performance from the following property groups: • Same Property Portfolio – includes the consolidated results of all of the properties that were owned and included in our stabilized portfolio for two comparable reporting periods, i.e., owned and included in our stabilized portfolio as of January 1, 2024 and still owned and included in the stabilized portfolio as of December 31, 2025, including our three residential properties in Hollywood and San Diego, California; • Re/Development Properties – includes the results generated by certain of our in-process development and redevelopment projects, and expenses for certain of our future development projects, and the results generated by the two stabilized redevelopment properties that were added to the stabilized portfolio in the third quarter of 2025; • Acquisition Properties – includes the results, from the date of acquisition through the periods presented, of the following: ◦ One property, comprised of two buildings, acquired in the third quarter of 2024; ◦ One property acquired in the third quarter of 2025; and ◦ One property, comprised of four buildings, acquired in the fourth quarter of 2025; and • Disposition and Held For Sale Properties – includes the results of the following: ◦ One property disposed of in the second quarter of 2025; ◦ One property, comprised of four buildings, disposed of in the third quarter of 2025; ◦ One property disposed of in the fourth quarter of 2025; and 55 ◦ One property, comprised of three buildings, classified as held for sale as of December 31, 2025.
(2) As of December 31, 2024 and 2023, there was no outstanding balance on the unsecured revolving credit facility. (3) Excludes the impact of the amortization of any debt discounts/premiums and deferred financing costs.
(2) As of December 31, 2025 and 2024, there was no outstanding balance on the unsecured revolving credit facility. (3) Includes the impact of an unused facility fee, amortization of deferred financing costs. and amortization of discounts.
We currently anticipate capital expenditures per square foot for 2025 to be consistent with 2024 levels. Replacement tenant improvements and leasing commissions per square foot increased in 2024 as compared to 2023, primarily due to a large lease with a long term that commenced in the San Francisco Bay Area in 2024.
Replacement tenant improvements and leasing commissions per square foot decreased in 2025 as compared to 2024, primarily due to a large lease with a long-term tenant that commenced in the San Francisco Bay Area in 2024.
Net Operating Income is an unlevered operating performance metric of our properties and allows for a useful comparison of the operating performance of individual assets or groups of assets. This measure thereby provides an operating perspective not immediately apparent from net income.
Net Operating Income is an unlevered operating performance metric of our properties and allows for a useful comparison of the operating performance of individual assets or groups of assets.
Leasing Costs Leasing costs increased $2.3 million, or 34.7%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023, primarily due to an increase in leasing overhead during the year ended December 31, 2024.
Leasing Costs Leasing costs increased $1.6 million, or 18.1%, for the year ended December 31, 2025 as compared to the year ended December 31, 2024, primarily due to an increase in leasing overhead during the year ended December 31, 2025.
Development and Redevelopment Programs We believe that a portion of our long-term future growth will continue to come from the completion of our in-process development and redevelopment projects and, subject to market conditions, from identifying new redevelopment opportunities and executing on our future development pipeline.
Refer to “Liquidity and Capital Resources of the Operating Partnership” for further discussion of the Company’s capital recycling program. 52 Development and Redevelopment Programs We believe that a portion of our long-term future growth will indirectly continue to come from the completion of our in-process development and redevelopment projects and, subject to market conditions, from identifying new opportunities and executing on our future development pipeline.
This project is comprised of approximately 48,000 square feet of life science space with a total estimated investment of $55.0 million, 65 inclusive of the depreciated basis of the building. We expect this property to be added to the stabilized portfolio in the third quarter of 2025.
This project is comprised of 48,414 square feet of life science space with a total estimated investment of $55.0 million, inclusive of the depreciated basis of the building. We added the building to the stabilized portfolio in the third quarter of 2025 upon reaching one year since substantial completion.
(3) Annualized base rent includes the impact of straight-lining rent escalations and the amortization of free rent periods and excludes the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue.
(3) Represents annualized monthly contractual rents from existing tenants in occupancy, including the impact of straight-lined rent escalations and the amortization of free rent periods and excluding the impact of the following: amortization of deferred revenue related to tenant-funded tenant improvements, amortization of above/below-market rents, amortization for lease incentives due under existing leases, and expense reimbursement revenue.
Evaluation of Asset Impairment We evaluate our real estate assets, including land held for future development, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a given asset may not be recoverable. We evaluate our real estate assets for impairment on a property-by-property basis.
We did not capitalize any acquisition costs during the year ended December 31, 2023. Evaluation of Asset Impairment We evaluate our real estate assets, including land held for future development, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a given asset may not be recoverable.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs of December 31, 2023, there was no outstanding balance on our unsecured revolving credit facility; however, it was available for borrowing at the following variable rate: Adjusted SOFR plus a spread of 0.900% (weighted average interest rate of 6.38%).
Biggest changeThere was no outstanding balance on our $1.1 billion unsecured revolving credit facility at December 31, 2025; however, it was available for borrowing at the following variable rate: Adjusted SOFR plus a spread of 1.100% (weighted average interest rate of 5.07%).
We calculate the market rate of our unsecured revolving credit facility and unsecured term loan facility by obtaining the period-end SOFR, adding a SOFR adjustment of 0.10% (“Adjusted SOFR”) and then adding an appropriate credit spread based on our credit ratings, and the amended terms of our unsecured revolving credit facility and unsecured term loan facility agreements.
We calculate the market rate of our unsecured revolving credit facility and unsecured term loan facility by obtaining the period-end SOFR, adding a SOFR adjustment of 0.10% (together “Adjusted SOFR”) and then adding an appropriate credit spread based on our credit ratings, and the amended terms of our unsecured revolving credit facility and unsecured term loan facility agreements.
Management’s Discussion and Analysis of Financial Condition and Results of Operations —Liquidity and Capital Resources of the Operating Partnership.” Interest Rate Risk As of December 31, 2024, 4.3% of our total outstanding debt of $4.6 billion (before the effects of debt discounts and deferred financing costs) was subject to variable interest rates. The remaining 95.7% bore interest at fixed rates.
Management’s Discussion and Analysis of Financial Condition and Results of Operations —Liquidity and Capital Resources of the Operating Partnership.” Interest Rate Risk As of December 31, 2025, 4.3% of our total outstanding debt of $4.6 billion (before the effects of debt discounts and deferred financing costs) was subject to variable interest rates. The remaining 95.7% bore interest at fixed rates.
These policies include maintaining prudent amounts of debt, including a greater amount of fixed-rate debt as compared to variable-rate debt in our portfolio, and may include the periodic use of derivative instruments. Information about our changes in interest rate risk exposures from December 31, 2023 to December 31, 2024 is incorporated herein by reference from “Item 7.
These policies include maintaining prudent amounts of debt, including a greater amount of fixed-rate debt as compared to variable-rate debt in our portfolio, and may include the periodic use of derivative instruments. Information about our changes in interest rate risk exposures from December 31, 2024 to December 31, 2025 is incorporated herein by reference from “Item 7.
Assuming no changes in the outstanding balance of our existing variable-rate debt as of December 31, 2024, a 100 basis-point increase in the Adjusted SOFR rate would have increased our projected annual interest expense, before the effect of capitalization, by approximately $2.0 million.
Assuming no changes in the outstanding balance of our existing variable-rate debt as of December 31, 2025, a 100 basis-point increase in the Adjusted SOFR rate would have increased our projected annual interest expense, before the effect of capitalization, by approximately $2.0 million.
At December 31, 2024, the total outstanding balance of our variable-rate debt was comprised of borrowings on our unsecured term loan facility of $200.0 million, which was indexed to Adjusted SOFR plus a spread of 1.200% (weighted average interest rate of 5.7%).
At December 31, 2024, the total outstanding balance of our variable-rate debt was comprised of borrowings on our unsecured term loan facility of $200.0 million, which was indexed to Adjusted SOFR plus a spread of 1.200% (weighted average interest rate of 5.70%).
There was no outstanding balance on our $1.1 billion unsecured revolving credit facility at December 31, 2024; however, it was available for borrowing at the following variable rate: Adjusted SOFR plus a spread of 1.100% (weighted average interest rate of 5.69%).
As of December 31, 2024, there was no outstanding balance on our unsecured revolving credit facility; however, it was available for borrowing at the following variable rate: Adjusted SOFR plus a spread of 1.100% (weighted average interest rate of 5.69%).
Comparatively, a 100 basis-point increase in the discount rate equates to a decrease in the total fair value of our fixed-rate debt of approximately $180.7 million, or 4.5%, as of December 31, 2023. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA See the index included at Item 15. “Exhibits and Financial Statement Schedules.”
Comparatively, a 100 basis-point increase in the discount rate equates to a decrease in the total fair value of our fixed-rate debt of approximately $181.7 million, or 4.5%, as of December 31, 2024. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA See the index included at Item 15. “Exhibits and Financial Statement Schedules.”
See Note 20 “Fair Value Measurements and Disclosures” and Note 2 “Basis of Presentation and Significant Accounting Policies” in the consolidated financial statements included in this report for additional information on the fair value of our financial assets and liabilities as of December 31, 2024 and December 31, 2023.
See Note 18 “Fair Value Measurements and Disclosures” and Note 2 “Basis of Presentation and Significant Accounting Policies” in the consolidated financial statements included in this report for additional information on the fair value of our financial assets and liabilities as of December 31, 2025 and December 31, 2024.
The total carrying value of our fixed-rate debt was approximately $4.4 billion as of December 31, 2024 and 2023. The total estimated fair value of our fixed-rate debt was approximately $4.1 billion and $4.0 billion as of December 31, 2024 and 2023, respectively.
The total carrying value of our fixed-rate debt was approximately $4.4 billion as of December 31, 2025 and 2024. The total estimated fair value of our fixed-rate debt was approximately $4.2 billion and $4.1 billion as of December 31, 2025 and 2024, respectively.
For sensitivity purposes, a 100 basis-point increase in the discount rate equates to a decrease in the total fair value of our fixed-rate debt of approximately $181.7 million, or 4.5%, as of 94 December 31, 2024.
For sensitivity purposes, a 100 basis-point increase in the discount rate equates to a decrease in the total fair value of our fixed-rate debt of approximately $190.3 million, or 4.5%, as of 78 December 31, 2025.
At December 31, 2023, the total outstanding balance of our variable-rate debt was comprised of borrowings on our unsecured term loan facility of $520.0 million, which was indexed to Adjusted SOFR plus a spread of 0.950% (weighted average interest rate of 6.41%).
At December 31, 2025, the total outstanding balance of our variable-rate debt was comprised of borrowings on our unsecured term loan facility of $200.0 million, which was indexed to Adjusted SOFR plus a spread of 1.200% (weighted average interest rate of 5.02%).

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