FFO Growth ForecastAverage annual FFO/share growth is expected to be -7.0% over the next three years, which explains the current valuation.
Occupancy ChallengesKilroy's average occupancy declined 10bps sequentially to 80.7%, driven by delivery of 4690 Executive.
Tenant Improvement CostsKilroy Realty faced abnormally high tenant improvement allowances on its 112k SF of first-generation leasing, which were 194% higher than the costs through the first half of 2025.