NYSE: KRC

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 %

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(1)Represents economic occupancy for space where we have achieved revenue recognition for the associated lease agreements.

(2)Includes stabilized life science and retail space.

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

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(1)For the property classified as held for sale, represents actual rentable square feet and consists of three buildings. 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.

Our stabilized portfolio also excludes our future development pipeline, which, as of December 31, 2025, was comprised of eight potential future development sites.

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Business and Growth Strategies

Growth Strategies. 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.

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). “FFO” is Funds From Operations available to common stockholders and common unitholders calculated in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”). (See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations —Results of Operations” and “—Non-GAAP Supplemental Financial Measures: Funds From Operations” for a reconciliation of these measures to generally accepted accounting principles (“GAAP”) net income available to common stockholders.)

Operating 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.

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. Against the backdrop of market volatilities, we intend to evaluate opportunities based on:

•submarket dynamics for the property being evaluated, which may include job growth of companies or industries located in that area and/or current or future competitive supply;

•physical characteristics of the property, which help determine the revenue growth potential over time, as well as the capital required to maintain and/or grow that revenue; and

•investment returns, including both the in-place income and the future income, factoring in projections of occupancy and rents over time.

Development and Redevelopment Strategies. We and our predecessors have developed commercial real estate on the West Coast since 1947. 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;

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•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. 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. 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.

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. 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. 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.

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). 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. 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. We pursue a variety of strategies to drive energy efficiency across the portfolio, such as utility use monitoring, systematic energy auditing, mechanical, lighting, and other building upgrades, optimizing operations and engaging tenants. We collaborate with our tenants on efforts to reduce their energy and water consumption and increase recycling diversion and compost rates. Many of our existing and prospective tenants have ambitious sustainability targets of their own, and we engage with tenants on a range of sustainability topics throughout each year. We aim to incorporate green lease language into all of our new leases, and the majority of our leases also include a cost recovery clause for resource-efficiency related capital expenditures. 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

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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 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. 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. These risks may include transitional risks such as policy, market, technology, and reputational concerns, as well as physical risks, and are a focus area for the Board of Directors and management. 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. This means that the entirety of our Scope 1 and Scope 2 emissions, and Scope 3 downstream leased assets emissions are offset through a combination of energy efficiency measures, onsite and offsite renewables, renewable energy credits (RECs), and verified carbon offsets. 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.

Significant Tenants

Our modern business environments foster creativity and productivity for top global technology, life science and healthcare, and media companies. 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. 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. 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. Properties —Significant Tenants.”

Competition

We compete with other developers, owners, operators, and acquirers of office and life science properties, 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. For further discussion of the potential impact of competitive conditions on our business, see “