Kilroy Realty (KRC) AI Stock Analysis

• Market Cap: $8.71B
• Dividend Yield: 5.79%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 1.16
• Revenue Growth: 1.11%
• EPS Growth: -3.07%
• Country: US
• Employees: 229
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Office
• EPS (TTM): 0.33
• Shares Outstanding: 118,280,580
• 10 Day Avg. Volume: 1,591,819
• 30 Day Avg. Volume: 1,245,575
• PEG Ratio: -4.31
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 128.92
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 11.69
• Enterprise Value/Ebitda: 3.15
• 1Y Price Target: $37.11
• Price Target Upside: -0.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: $41.00 ▲(9.89%Upside)

Kilroy Realty has a solid overall stock score of 75, driven by strong technical indicators and positive sentiment from the recent earnings call. Despite some financial performance concerns, such as declining cash reserves and high P/E ratio, the company's strategic initiatives and robust dividend yield contribute to its appeal. The focus on operational flexibility and strategic capital allocation further supports its position in the market.

Positive Factors

Management and Market Positioning

KRC has a strong management team and is located in markets poised to benefit from AI adoption and a return from Big Tech tenants.

Negative Factors

Financial Performance

KRC faces headwinds from its $2.5B development pipeline with capitalized interest rolling off, which could impact financial performance.

Occupancy Rates

KRC's average office occupancy fell to 81.4%, with further declines expected, indicating potential challenges in maintaining occupancy levels.

Kilroy Realty Business Overview & Revenue Model

Company Description

Kilroy Realty Corporation (KRC) is a prominent real estate investment trust (REIT) that specializes in the ownership, development, and management of high-quality office and mixed-use properties. Headquartered in Los Angeles, California, the company primarily focuses on markets along the West Coast of the United States, including Los Angeles, San Francisco, San Diego, and Seattle. Kilroy Realty is known for its commitment to sustainability and innovation, offering state-of-the-art workspaces that cater to technology, media, and entertainment sectors, among others.

How the Company Makes Money

Kilroy Realty generates revenue primarily through its property portfolio, which includes leasing office and mixed-use spaces to a diverse range of tenants. The company's income is primarily derived from rental revenues collected under long-term lease agreements with tenants. Additionally, Kilroy Realty engages in the development and redevelopment of properties, which can contribute to revenue growth through property sales or increased rental income from enhanced or newly developed spaces. The company's strategic focus on sustainable and innovative property solutions also helps attract high-profile tenants, thus contributing to stable and potentially increasing cash flows.

Kilroy Realty Financial Statement Overview

Summary

Kilroy Realty demonstrates a stable financial position with steady margins and prudent debt management. The income statement shows solid gross and net profit margins, though revenue growth is slightly negative. The balance sheet is strong, with a reasonable debt-to-equity ratio and high equity ratio, but declining cash reserves are a concern. Cash flow is stable, with efficient cash conversion, but needs improvement in free cash flow generation.

Income Statement

Kilroy Realty's income statement shows moderate stability and growth. The TTM gross profit margin is solid at 66.8%, though we've seen a slight decline in revenue with a recent negative growth rate of -0.68%. The net profit margin stands at 17.74%, indicating healthy profitability levels. However, the EBIT and EBITDA margins are consistent, which is a positive sign for operational efficiency.

Balance Sheet

The company's balance sheet appears stable with a debt-to-equity ratio of 0.88, which is reasonable for a REIT. Equity ratio is strong at 49.23%, demonstrating a well-capitalized structure, though the return on equity is relatively moderate at 3.74% TTM. The overall leverage is manageable, but the declining cash reserves could pose a risk if not addressed.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth, with a TTM free cash flow of $34.04 million, down from the previous period. The operating cash flow to net income ratio is favorable at 2.55, reflecting efficient cash conversion, though the free cash flow to net income ratio is low. Overall, the cash flow situation is stable but shows room for improvement in free cash flow generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14B	1.13B	1.10B	955.04M	898.40M
Gross Profit	783.24M	778.62M	775.93M	685.46M	637.68M
EBITDA	735.49M	708.81M	640.75M	553.33M	538.41M
Net Income	210.97M	212.24M	232.62M	628.14M	187.10M
Balance Sheet
Total Assets	10.90B	11.40B	10.80B	10.58B	10.00B
Cash, Cash Equivalents and Short-Term Investments	193.66M	510.16M	347.38M	441.55M	759.47M
Total Debt	4.73B	5.05B	4.39B	4.19B	4.02B
Total Liabilities	5.29B	5.74B	5.12B	4.89B	4.72B
Stockholders Equity	5.38B	5.43B	5.44B	5.44B	5.03B
Cash Flow
Free Cash Flow	40.17M	58.77M	5.63M	-1.28B	-160.47M
Operating Cash Flow	541.15M	602.59M	592.24M	516.40M	455.59M
Investing Cash Flow	-225.04M	-800.40M	-553.19M	-747.88M	-542.13M
Financing Cash Flow	-660.58M	360.60M	-118.75M	-164.57M	833.32M

Kilroy Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRC, the sentiment is Positive. The current price of 37.31 is above the 20-day moving average (MA) of 35.50, above the 50-day MA of 33.89, and above the 200-day MA of 35.23, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 70.13 is Negative, neither overbought nor oversold. The STOCH value of 76.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KRC.

Kilroy Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	75 Outperform	$8.71B	21.94	3.69%	5.79%	1.11%	-3.07%
HIW	66 Neutral	$3.27B	18.97	7.21%	6.56%	-2.01%	31.64%
DEI	65 Neutral	$3.14B	48.85	2.49%	4.90%	-1.98%	―
CUZ	63 Neutral	$4.74B	84.32	1.15%	4.54%	10.93%	-31.07%
BXP	61 Neutral	$11.99B	732.74	-0.10%	5.68%	3.74%	-102.51%
SLG	58 Neutral	$4.58B	663.10	-0.35%	5.10%	14.21%	79.46%
Sector *	54 Neutral	$1.19B	3.64	0.13%	6.72%	-2.13%	-128.06%

Kilroy Realty Corporate Events

Kilroy Realty Holds 2025 Annual Stockholders Meeting

Kilroy Realty Corporation held its 2025 annual meeting of stockholders on May 20, 2025. During the meeting, all director nominees were elected to serve until the 2026 annual meeting, the compensation of the Company’s named executive officers was approved on an advisory basis, and Deloitte & Touche LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025.

The most recent analyst rating on (KRC) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Kilroy Realty stock, see the KRC Stock Forecast page.

Kilroy Realty Announces Departure of Chief Accounting Officer

Kilroy Realty announced that Merryl Werber, the Senior Vice President, Chief Accounting Officer, and Controller, will leave the company on January 9, 2026, to pursue other opportunities. The company has started the search for her replacement, and her departure is not due to any disagreements over financial statements or accounting practices.

The most recent analyst rating on (KRC) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Kilroy Realty stock, see the KRC Stock Forecast page.

Kilroy Realty Reports Strong Q1 2025 Financial Results

On May 5, 2025, Kilroy Realty Corporation reported its financial results for the first quarter ended March 31, 2025, highlighting a strong start to the year despite market volatility. The company achieved revenues of $270.8 million and a net income of $39.0 million, with significant leasing activity and progress in its development projects. Kilroy also announced an agreement to sell a portion of its Santa Fe Summit site, which is expected to close in 2026, indicating strategic moves to monetize its land assets.