Kilroy Realty (KRC) AI Stock Analysis

• Market Cap: $4.09B
• Dividend Yield: 5.75%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.99
• 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: 2,086,780
• 30 Day Avg. Volume: 1,565,329
• 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: 2.05
• Enterprise Value/Revenue: 7.46
• Enterprise Value/Gross Profit: 11.09
• Enterprise Value/Ebitda: 10.34
• 1Y Price Target: $40.92
• Price Target Upside: 19.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $38.00 ▲(10.85% Upside)

Kilroy Realty's overall stock score reflects strong financial stability and positive earnings call highlights, particularly in leasing activity and strategic acquisitions. While technical indicators suggest short-term bearish trends, the company's valuation and attractive dividend yield provide a solid investment case. The raised FFO guidance and strategic moves in high-demand sectors like tech and life sciences bolster the outlook, despite challenges in lease expirations.

Positive Factors

Leasing Momentum

Sustained, strong leasing (550k+ sq ft in Q3) signals durable tenant demand and expanding rent roll. Long-term leases improve cash flow visibility, reduce vacancy risk, and support recurring FFO, underpinning the REIT’s ability to fund operations and development over the next several quarters.

San Francisco Market Recovery

Acceleration in SF demand, led by AI and tech, strengthens Kilroy’s exposure in a core high-barrier market. Persistent tech and life-science demand in urban nodes supports long-term occupancy, pricing power for premier assets, and reduces cyclicality compared with weaker secondary markets.

Strong Cash Generation

Material FCF improvement and healthy cash conversion ratios indicate durable internal funding capacity. Strong cash generation supports dividends, development spending, and debt servicing without heavy external financing, enhancing balance sheet optionality across economic cycles.

Negative Factors

2026 Lease Expirations Concentration

A large block of near-term expirations (~970k sq ft) concentrates re-leasing risk into a short window. If renewals fall short, occupancy and rental income could decline materially, forcing concessions or repositioning costs and pressuring medium-term FFO and income stability.

Tenant Bankruptcy and Move-Out

A 95k sqft bankruptcy-driven vacancy is a structural concern for that asset: re-leasing large creative/amenity spaces can be lengthy and may require tenant improvements or rent concessions, reducing net operating income and potentially altering tenant mix for multiple quarters.

Weak Return Profile and Revenue Trend

ROE near 1% and recent revenue declines point to low capital efficiency and top-line pressure. Persistent weak returns limit reinvestment returns and shareholder value creation, making growth reliant on higher-yield projects or asset rotation rather than organic 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

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	757.70M	762.76M	778.62M	775.93M	685.46M	637.68M
EBITDA	812.87M	735.49M	708.81M	659.85M	1.05B	578.20M
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	405.99M	193.66M	794.83M	370.93M	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	179.61M	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: Negative
• Last Price: 34.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 34.28 is below the 20-day moving average (MA) of 36.56, below the 50-day MA of 38.60, and below the 200-day MA of 37.66, indicating a bearish trend. The MACD of -1.32 indicates Positive momentum. The RSI at 24.76 is Positive, neither overbought nor oversold. The STOCH value of 12.78 is Positive, 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
KRC	71 Outperform	$4.09B	12.65	5.94%	5.75%	0.77%	62.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HIW	65 Neutral	$2.86B	22.19	5.37%	7.83%	-2.10%	-13.30%
CUZ	63 Neutral	$4.37B	73.24	1.26%	5.08%	16.38%	3.60%
VNO	58 Neutral	$6.38B	7.25	15.97%	2.24%	2.41%	―
DEI	52 Neutral	$1.76B	85.56	1.03%	6.45%	-0.12%	―
SLG	51 Neutral	$3.22B	―	-2.24%	6.95%	8.60%	―

Kilroy Realty Corporate Events

Kilroy Realty Appoints New Chief Accounting Officer

Kilroy Realty Corporation announced the appointment of Chandni Jalan as the new Senior Vice President and Chief Accounting Officer, effective December 2, 2025, succeeding Merryl Werber who will transition to a Senior Advisor role until January 9, 2026. Jalan brings over 20 years of experience in global accounting and financial reporting, having previously worked at Fruitist and CBRE Group. Additionally, Kilroy Realty’s Board approved a new Executive Severance Plan to align severance protections with market practices, affecting several key executives with existing employment agreements set to expire in 2026 and 2027.

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.