Kilroy Realty (KRC) Investor presentation summary

Portfolio and market positioning

• Owns and operates Class A office and life science properties in major innovation hubs including San Francisco, Los Angeles, San Diego, Seattle, and Austin, with a stabilized portfolio of 16.3M RSF and 81.6% occupancy as of December 2025.

• Tenant base is diversified across technology (51% of ABR), life sciences, media, and professional services, with 45% investment-grade tenants.

• West Coast markets benefit from high venture capital flows, AI sector growth, and a robust innovation ecosystem, driving demand for premium office and lab space.

• AI companies accounted for 27% of San Francisco leasing activity in 2025, with 2.9M SF leased, and 90% of AI leases being expansionary.

• Office-using employment and occupied office space are projected to grow, with AI and information processing expected to be net job creators by 2030.

Leasing and development highlights

• Achieved record leasing in 2025, signing 2.1M SF for the year and 827K SF in Q4, the strongest annual performance in six years.

• Secured a 280K SF lease with UCSF at Kilroy Oyster Point Phase 2 (KOP 2), reinforcing its status as a premier life science campus.

• KOP 2, an 875K SF life science development, entered the stabilized portfolio in January 2026 and is 44% leased with 384K SF signed, including major tenants like UCSF and MBC Biolabs.

• Life science sector indicators are positive, with improved business sentiment, funding, and hiring outlooks, and a shift toward relocations for upgraded lab space.

Strategic capital allocation and transactions

• Executed $465M in dispositions and $395M in acquisitions in 2025, with $165M in land parcels under contract, focusing on recycling capital into high-conviction opportunities.

• Recent dispositions include 501 Santa Monica ($40M), Sunset Media Center ($61M), Sunnyvale Campus ($365M), and Kilroy Sabre Springs ($125M), optimizing the portfolio and capitalizing on market conditions.

• Acquisitions include Maple Plaza in Beverly Hills ($205M) and Nautilus in San Diego ($192M), targeting supply-constrained, high-demand submarkets.