Kilroy Realty (KRC) AI Stock Analysis

• Market Cap: $3.71B
• Dividend Yield: 5.75%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.06
• Revenue Growth: 0.77%
• EPS Growth: 62.58%
• Country: US
• Employees: 229
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.10
• Shares Outstanding: 118,503,050
• 10 Day Avg. Volume: 2,277,773
• 30 Day Avg. Volume: 2,052,557
• PEG Ratio: 0.53
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 4.00
• P/FCF Ratio: 7.85
• Enterprise Value/Market Cap: 2.26
• Enterprise Value/Revenue: 7.55
• Enterprise Value/Gross Profit: 11.27
• Enterprise Value/Ebitda: 10.39
• 1Y Price Target: $38.17
• Price Target Upside: 21.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 0.47
• Revenue Forecast (FY): $1.06B

• Rating: 57 Neutral
• Price Target: $33.00 ▲(4.70% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven mainly by mixed fundamentals—strong margins and operating cash flow but pressured by leverage, uneven free cash flow, and a sharp TTM revenue decline—while weak price momentum weighs on the outlook. Valuation (moderate P/E and high dividend yield) and a generally constructive earnings-call narrative around leasing and capital recycling help offset near-term occupancy and development-drag risks.

Positive Factors

Record leasing momentum & expanding forward pipeline

A materially larger forward leasing pipeline and record quarterly leasing provide multi-quarter visibility into rent commencements and cash flow. This reduces vacancy risk, strengthens re-leasing leverage, and supports stable revenue as new leases roll to stabilization over months.

Disciplined capital recycling and active dispositions

Consistent disposition activity monetizes lower-return assets, shoring up liquidity and funding higher-return development and life-science investments. This strategic recycling improves portfolio quality and reduces exposure to weaker submarkets over the medium term.

Steady operating cash flow generation

Reliable operating cash flow supports dividend coverage, debt service, and reinvestment even with uneven free cash flow. Steady OCF provides durable financial flexibility to execute leasing, stabilize developments, and fund selective acquisitions over coming quarters.

Negative Factors

Elevated leverage relative to peers

Substantial leverage increases interest expense sensitivity and reduces financial flexibility in a higher-rate environment. It constrains the company's ability to opportunistically acquire or absorb development timing risk and magnifies refinancing and liquidity pressure if cash flows soften.

Near-term occupancy dip driven by KOP 2 stabilization

Bringing KOP 2 into the stabilized pool depresses consolidated occupancy and compresses near-term NOI. Stabilization and spec-suite leasing can take multiple quarters, creating FFO volatility and headwinds to margin recovery during the transitional period.

Development-related earnings drag and rising cap interest

Negative development NOI and elevated capitalized interest will depress reported earnings and cash conversion for several quarters. Lower-than-underwritten yields at new phases reduce projected returns, delaying contribution to portfolio NOI and constraining margin expansion.

Kilroy Realty Business Overview & Revenue Model

Company Description

Kilroy Realty Corporation (NYSE: KRC, the company, KRC) is a leading West Coast landlord and developer, with a major presence in San Diego, Greater Los Angeles, the San Francisco Bay Area, and the Pacific Northwest. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity, productivity and employee retention for some of the world's leading technology, entertainment, life science and business services companies. KRC is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office and mixed-use projects. As of September 30, 2020, KRC's stabilized portfolio totaled approximately 14.3 million square feet of primarily office and life science space that was 92.2% occupied and 95.5% leased. The company also had 808 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 85.0% and 37.5%, respectively. In addition, KRC had seven in-process development projects with an estimated total investment of $1.9 billion, totaling approximately 2.3 million square feet of office and life science space. The office and life science space was 90% leased.

How the Company Makes Money

Kilroy Realty generates revenue primarily through leasing office spaces to commercial tenants, which is its main revenue stream. The company enters into long-term leases, often with substantial upfront rent payments, which provide a stable cash flow. Additionally, KRC benefits from property management fees and ancillary services associated with its properties. The firm also engages in development projects, which can lead to significant returns once the new properties are leased. Partnerships with other real estate firms, as well as collaborations on development projects, enhance its capabilities and market reach, further contributing to its earnings. Overall, KRC's focus on high-demand urban markets and adaptive reuse of properties aligns with current trends in workplace preferences, supporting its continued revenue generation.

Kilroy Realty Financial Statement Overview

Summary

Profitability and operating cash flow are solid (healthy net and EBITDA margins; steady operating cash flow), but the profile is weighed down by a sharp TTM revenue decline, uneven free-cash-flow generation, and elevated leverage with modest ROE.

Income Statement

TTM (Trailing-Twelve-Months) revenue is down sharply (about -126%), but profitability remains solid with a healthy net margin (~28.7%) and strong EBITDA margin (~72%). Over the last several annual periods, revenue was generally stable-to-modestly growing through 2024, while net income has been volatile (notably an outsized 2021 profit versus more normalized results afterward). Overall: strong margin profile, but growth and earnings consistency are key weaknesses.

Balance Sheet

Leverage appears elevated with debt-to-equity consistently around ~0.77–0.93 in recent annual periods, which can pressure flexibility in a higher-rate environment for office REITs. Return on equity is modest (~3.7%–4.3% in 2020–2024; ~6.0% TTM), indicating limited profitability relative to the equity base. Balance sheet looks stable in equity size, but leverage and mid-single-digit returns keep the score in the middle.

Cash Flow

Operating cash flow is steady and strong (roughly $456M–$603M annually; ~$566M TTM), supporting the business’s cash generation. However, free cash flow has been inconsistent—materially negative in 2020 and especially 2021, very thin in 2022, modest in 2023–2024, and stronger TTM (about $291M with a large reported growth rate). Conversion of earnings into free cash flow is still not particularly strong (TTM free cash flow is ~0.32x net income), reflecting ongoing reinvestment/capex demands and variability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.11B	1.14B	1.13B	1.10B	955.04M
Gross Profit	745.51M	762.76M	778.62M	775.93M	685.46M
EBITDA	808.51M	735.49M	708.81M	659.85M	1.05B
Net Income	276.10M	210.97M	212.24M	232.62M	628.14M
Balance Sheet
Total Assets	10.92B	10.90B	11.40B	10.80B	10.58B
Cash, Cash Equivalents and Short-Term Investments	210.12M	193.66M	794.83M	370.93M	441.55M
Total Debt	4.84B	4.73B	5.05B	4.39B	4.19B
Total Liabilities	5.28B	5.29B	5.74B	5.12B	4.89B
Stockholders Equity	5.42B	5.38B	5.43B	5.44B	5.44B
Cash Flow
Free Cash Flow	566.31M	40.17M	58.77M	5.63M	-1.28B
Operating Cash Flow	566.31M	541.15M	602.59M	592.24M	516.40M
Investing Cash Flow	-240.03M	-225.04M	-800.40M	-553.19M	-747.88M
Financing Cash Flow	-312.66M	-660.58M	360.60M	-118.75M	-164.57M

Kilroy Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRC, the sentiment is Negative. The current price of 31.52 is below the 20-day moving average (MA) of 33.00, below the 50-day MA of 36.05, and below the 200-day MA of 37.77, indicating a bearish trend. The MACD of -1.42 indicates Negative momentum. The RSI at 34.33 is Neutral, neither overbought nor oversold. The STOCH value of 35.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRC.

Kilroy Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
KRC	57 Neutral	$3.71B	13.39	5.09%	5.75%	0.77%	62.58%
HIW	56 Neutral	$2.54B	16.22	6.73%	7.83%	-2.10%	-13.30%
VNO	55 Neutral	$5.78B	6.64	16.24%	2.24%	2.41%	―
CUZ	53 Neutral	$3.88B	96.08	0.85%	5.08%	16.38%	3.60%
SLG	48 Neutral	$2.78B	-23.45	-2.25%	6.95%	8.60%	―
DEI	45 Neutral	$1.69B	114.03	1.03%	6.45%	-0.12%	―

Kilroy Realty Corporate Events

Kilroy Realty Reshapes Board Leadership and Governance Structure

On February 24, 2026, Kilroy Realty Corporation’s board appointed long-time director Gary Stevenson as Chair of the Board, succeeding Edward F. Brennan, PhD, who shifted to Chair of the Audit Committee, while fellow director Jolie Hunt became Chair of the Executive Compensation Committee. The leadership reshuffle, formally announced on February 26, 2026, reflects a governance refresh that leverages existing directors’ experience in executive pay, audit oversight, and ESG-related strategy during a period of transformation for the REIT.

Also on February 24, 2026, the board expanded from seven to nine members and named real estate and capital-markets veterans Cia Buckley Marakovits and David Kieske as independent directors, granting them standard non-employee director compensation and initial restricted stock unit awards that vest over two years. The board simultaneously restructured its committee framework by disbanding the Corporate Social Responsibility and Sustainability Committee, reallocating ESG and human capital oversight among the Nominating/Corporate Governance, Executive Compensation, and Audit committees, and disclosed that long-serving director Peter Stoneberg will retire at the 2026 annual meeting, at which point the board will shrink to eight members.

These moves aim to streamline governance, integrate sustainability and human capital oversight more deeply into core board committees, and strengthen financial and investment expertise at the board level. For shareholders and other stakeholders, the changes signal an effort to align Kilroy’s board composition and governance structure with the evolving demands of the office and life science real estate markets, as the company navigates a dynamic operating environment and ongoing portfolio evolution.

The most recent analyst rating on (KRC) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Kilroy Realty stock, see the KRC Stock Forecast page.

Kilroy Realty Posts Mixed Q4 Results Amid Life Science Pivot

On February 9, 2026, Kilroy Realty reported that for the fourth quarter of 2025 it generated $272.2 million in revenue, with net income to common shareholders falling to $12.4 million and funds from operations (FFO) at $117.2 million, reflecting lower earnings versus the prior-year quarter. For full-year 2025, revenue slipped slightly to $1.11 billion and FFO declined, but net income rose to $276.1 million, underscoring a year of active portfolio management amid a challenging office backdrop.

Operationally, Kilroy’s stabilized portfolio was 81.6% occupied and 83.8% leased at year-end 2025, with about 2.1 million square feet of leases signed over the year, its strongest annual leasing since 2019 despite rent spreads declining on second-generation space. The company reported its best fourth-quarter leasing in six years, driven in part by demand for life science space at Kilroy Oyster Point Phase 2 in South San Francisco, where major tenants including the University of California, San Francisco and Acadia Pharmaceuticals contributed to the project reaching 44% leased, signaling traction in the life science segment.

Kilroy also executed significant capital recycling in 2025, selling multiple office assets and land parcels in Los Angeles, Silicon Valley, and San Diego while acquiring the Nautilus life science campus in Torrey Pines and Maple Plaza in Beverly Hills to tilt the portfolio toward stronger submarkets. On the balance sheet, the company refinanced upcoming maturities by issuing $400 million of 5.875% unsecured senior notes due 2035 and redeeming $400 million of 2025 notes, and it maintained shareholder returns with a quarterly dividend of $0.54 per share paid in January 2026, moves that collectively bolster liquidity and support its transition toward higher-growth, life science-weighted assets.

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.