Kilroy Realty (KRC) AI Stock Analysis

• Market Cap: $5.08B
• Dividend Yield: 5.06%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.00
• Revenue Growth: 0.77%
• EPS Growth: 62.58%
• Country: US
• Employees: 229
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 1.31
• Shares Outstanding: 118,305,700
• 10 Day Avg. Volume: 1,334,318
• 30 Day Avg. Volume: 1,440,682
• PEG Ratio: -20.30
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 4.19
• P/FCF Ratio: 118.47
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 8.51
• Enterprise Value/Gross Profit: 12.46
• Enterprise Value/Ebitda: 13.72
• 1Y Price Target: $43.00
• Price Target Upside: -1.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.5
• Revenue Forecast (FY): $1.11B

• Rating: 72 Outperform
• Price Target: $47.00 ▲(8.10% Upside)

Kilroy Realty's overall stock score is driven by strong financial stability and cash flow performance, complemented by positive earnings call highlights. The valuation is attractive with a reasonable P/E ratio and high dividend yield. Technical indicators suggest a stable long-term trend, although short-term caution is advised. The company's strategic leasing and acquisitions further bolster its position, despite some challenges with lease expirations.

Positive Factors

Strong Leasing Activity

The high volume of new and renewal leases indicates strong demand for Kilroy's properties, enhancing long-term revenue stability and market presence.

Life Science Market Improvement

Increased leasing in the life sciences sector positions Kilroy to benefit from growth in this high-demand industry, supporting future revenue streams.

Cash Flow Performance

Strong cash generation enhances Kilroy's ability to invest in growth opportunities and maintain financial flexibility, supporting long-term stability.

Negative Factors

Revenue Growth Decline

Declining revenue growth may impact Kilroy's ability to expand its market position and could pressure future profitability if not addressed.

Lease Expirations Challenge

Upcoming lease expirations pose a risk to occupancy rates and revenue continuity, requiring effective re-leasing strategies to mitigate impact.

Low Return on Equity

Low return on equity suggests inefficiencies in generating returns from investments, which could hinder Kilroy's ability to attract capital and grow.

Kilroy Realty Business Overview & Revenue Model

Company Description

Kilroy Realty Corporation (KRC) is a leading real estate investment trust (REIT) that focuses on the ownership, operation, and development of office and mixed-use properties primarily in the West Coast markets of the United States, including California and Washington. The company is known for its commitment to sustainability and innovation in real estate, offering high-quality office spaces, creative work environments, and amenity-rich developments that cater to the needs of modern tenants.

How the Company Makes Money

Kilroy Realty generates revenue primarily through leasing office and mixed-use properties to a diverse range of tenants, including technology, media, and life sciences companies. The company earns rental income from long-term leases, which provide steady cash flows. Additionally, KRC engages in property development, which contributes to its revenue through the sale or leasing of newly constructed buildings. The company also benefits from property management fees and ancillary services provided to tenants. Strategic partnerships with firms in the tech and life sciences sectors enhance KRC's tenant base, while its focus on sustainable development attracts environmentally conscious companies, further driving demand for its properties.

Kilroy Realty Financial Statement Overview

Summary

Kilroy Realty demonstrates strong cash flow performance and stable profitability margins, although revenue growth has declined recently. The company maintains a balanced capital structure with moderate leverage, but the low return on equity suggests room for improvement in generating returns from equity investments. Overall, Kilroy Realty is financially stable with potential for growth if revenue trends improve.

Income Statement

Kilroy Realty's income statement shows a stable gross profit margin of around 68% in the TTM, indicating efficient cost management. However, the net profit margin has decreased from 18.6% in 2024 to 28.7% in the TTM, reflecting improved profitability. The revenue growth rate is negative in the TTM, suggesting a decline in revenue compared to the previous period, which could be a concern for future growth.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.86 in the TTM, indicating a balanced approach to leveraging. The return on equity is low at 0.99%, suggesting limited profitability from equity investments. The equity ratio is stable, reflecting a solid capital structure with equity financing.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth at 62.3% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.22, suggesting efficient cash conversion. The free cash flow to net income ratio is robust at 0.80, reflecting strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.14B	1.13B	1.10B	955.04M	898.40M
Gross Profit	769.22M	762.76M	778.62M	775.93M	685.46M	637.68M
EBITDA	698.90M	735.49M	708.81M	640.75M	553.33M	538.41M
Net Income	322.96M	210.97M	212.24M	232.62M	628.14M	187.10M
Balance Sheet
Total Assets	10.99B	10.90B	11.40B	10.80B	10.58B	10.00B
Cash, Cash Equivalents and Short-Term Investments	277.65M	193.66M	510.16M	347.38M	441.55M	759.47M
Total Debt	4.72B	4.73B	5.05B	4.39B	4.19B	4.02B
Total Liabilities	5.31B	5.29B	5.74B	5.12B	4.89B	4.72B
Stockholders Equity	5.47B	5.38B	5.43B	5.44B	5.44B	5.03B
Cash Flow
Free Cash Flow	454.62M	40.17M	58.77M	5.63M	-1.28B	-160.47M
Operating Cash Flow	565.47M	541.15M	602.59M	592.24M	516.40M	455.59M
Investing Cash Flow	-102.42M	-225.04M	-800.40M	-553.19M	-747.88M	-542.13M
Financing Cash Flow	-716.04M	-660.58M	360.60M	-118.75M	-164.57M	833.32M

Kilroy Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 43.48 is above the 20-day moving average (MA) of 41.38, above the 50-day MA of 41.86, and above the 200-day MA of 35.81, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 67.28 is Neutral, neither overbought nor oversold. The STOCH value of 84.34 is Negative, 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	72 Outperform	$5.08B	15.67	5.94%	5.06%	0.77%	62.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HIW	65 Neutral	$3.16B	24.94	5.37%	6.75%	-2.10%	-13.30%
CUZ	63 Neutral	$4.32B	74.19	1.26%	4.89%	16.38%	3.60%
VNO	57 Neutral	$7.42B	8.47	15.97%	1.99%	2.41%	―
DEI	54 Neutral	$2.15B	59.33	1.04%	6.35%	-0.12%	―
SLG	51 Neutral	$3.86B	―	0.61%	6.13%	8.60%	―

Kilroy Realty Corporate Events

Kilroy Realty’s Strong Quarter: Leasing Leads the Way

Kilroy Realty’s recent earnings call painted a picture of a robust quarter, characterized by impressive leasing activity, particularly in San Francisco and the life science sector. The company strategically enhanced its portfolio through acquisitions and sales, although it faces challenges with upcoming lease expirations and the need to re-lease vacated spaces. Despite these hurdles, the positive aspects, especially in leasing, overshadow the challenges.

Kilroy Realty Reports Strong Q3 2025 Performance

Kilroy Realty Corporation is a leading U.S. real estate investment trust (REIT) specializing in office, life science, and mixed-use projects, with a strong focus on sustainability and innovation across major markets including San Francisco, Los Angeles, Seattle, San Diego, and Austin.

Kilroy Realty Reports Strong Q3 2025 Financial Results

On October 27, 2025, Kilroy Realty Corporation announced its financial results for the third quarter ending September 30, 2025, reporting revenues of $279.7 million and a significant increase in net income to $156.2 million compared to the previous year. The company highlighted strong leasing activity, particularly at Kilroy Oyster Point Phase 2, and completed significant acquisition and disposition activities, including the purchase of Maple Plaza in Los Angeles and the sale of a campus in Silicon Valley. Kilroy also updated its full-year guidance for funds from operations, reflecting an optimistic outlook.

The most recent analyst rating on (KRC) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Kilroy Realty stock, see the KRC Stock Forecast page.

Kilroy Realty Completes $400M Senior Notes Offering

On August 8, 2025, Kilroy Realty Corporation completed a public offering of $400 million in senior notes due in 2035, with an interest rate of 5.875%. This strategic financial move aims to strengthen the company’s capital structure and support its ongoing operations and growth initiatives. Additionally, the company filed a new registration statement to facilitate its ‘at-the-market’ equity offering, allowing for the sale of up to $500 million in common stock, enhancing its financial flexibility and market presence.

The most recent analyst rating on (KRC) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Kilroy Realty stock, see the KRC Stock Forecast page.

Kilroy Realty Reports Strong Q2 2025 Financial Results

Kilroy Realty Corporation is a prominent real estate investment trust (REIT) specializing in the development, acquisition, and management of office, life science, and mixed-use properties across major U.S. cities, with a strong commitment to sustainability and innovation in the real estate sector.

Kilroy Realty’s Earnings Call: Positive Outlook Amid Challenges

The recent earnings call for Kilroy Realty Corporation conveyed a generally positive sentiment, underscored by robust leasing activity and strategic capital recycling efforts, particularly in high-demand markets such as San Francisco and San Diego. However, the company is facing challenges with occupancy declines and negative re-leasing spreads, alongside broader hurdles in the life science ecosystem.