Kilroy Realty (KRC) AI Stock Analysis

• Market Cap: $5.22B
• Dividend Yield: 4.95%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.13
• Revenue Growth: 2.26%
• EPS Growth: 10.15%
• Country: US
• Employees: 229
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.57
• Shares Outstanding: 118,294,330
• 10 Day Avg. Volume: 1,618,078
• 30 Day Avg. Volume: 1,359,562
• 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: 1.69
• Enterprise Value/Revenue: 7.77
• Enterprise Value/Gross Profit: 11.46
• Enterprise Value/Ebitda: 12.49
• 1Y Price Target: $40.00
• Price Target Upside: -7.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 69 Neutral
• Price Target: $47.00 ▲(8.44% Upside)

Kilroy Realty's overall stock score reflects strong financial performance and strategic corporate actions, balanced by technical indicators suggesting overbought conditions and valuation concerns. The company's robust leasing activity and financial flexibility are significant strengths, while challenges in occupancy and re-leasing spreads present risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market positioning and demand for Kilroy's properties, supporting long-term financial health.

Cash Flow Generation

Significant improvement in cash flow generation enhances Kilroy's ability to invest in growth opportunities and manage debt effectively.

Leasing Activity

Strong leasing activity reflects high demand for Kilroy's properties, ensuring stable future cash flows and reinforcing market presence.

Negative Factors

Declining Occupancy

Declining occupancy rates may pressure revenue and profitability, indicating challenges in maintaining tenant retention and space utilization.

Negative Re-leasing Spreads

Negative re-leasing spreads suggest difficulty in maintaining rental rates, potentially impacting future revenue and profit margins.

Increasing Debt Levels

Rising debt levels could strain financial flexibility and increase risk, affecting Kilroy's ability to invest in growth and manage economic downturns.

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 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 revenue growth and profitability, supported by a stable balance sheet and improving cash flow generation. However, challenges include slightly declining EBIT and EBITDA margins and increasing debt levels, which could impact future financial flexibility.

Income Statement

Kilroy Realty's income statement shows strong profitability with a consistent gross profit margin around 67-68% and a net profit margin improving to 19.27% in the TTM. Revenue growth is robust at 81.2% in the TTM, indicating strong top-line expansion. However, the EBIT and EBITDA margins have slightly decreased, suggesting potential cost pressures or increased expenses.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.88 in the TTM, which is manageable for a REIT. Return on equity is modest at 4.08%, indicating moderate profitability relative to equity. The equity ratio remains stable, suggesting a balanced capital structure, though the increase in total debt over time could pose future risks.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 722.73% in the TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.03, but the free cash flow to net income ratio remains below 0.5, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14B	1.14B	1.13B	1.10B	955.04M	898.40M
Gross Profit	770.86M	762.76M	778.62M	775.93M	685.46M	637.68M
EBITDA	707.21M	735.49M	708.81M	640.75M	553.33M	538.41M
Net Income	219.12M	210.97M	212.24M	232.62M	628.14M	187.10M
Balance Sheet
Total Assets	10.87B	10.90B	11.40B	10.80B	10.58B	10.00B
Cash, Cash Equivalents and Short-Term Investments	224.76M	193.66M	510.16M	347.38M	441.55M	759.47M
Total Debt	4.73B	4.73B	5.05B	4.39B	4.19B	4.02B
Total Liabilities	5.27B	5.29B	5.74B	5.12B	4.89B	4.72B
Stockholders Equity	5.37B	5.38B	5.43B	5.44B	5.44B	5.03B
Cash Flow
Free Cash Flow	280.04M	40.17M	58.77M	5.63M	-1.28B	-160.47M
Operating Cash Flow	565.25M	541.15M	602.59M	592.24M	516.40M	455.59M
Investing Cash Flow	-366.20M	-225.04M	-800.40M	-553.19M	-747.88M	-542.13M
Financing Cash Flow	-841.82M	-660.58M	360.60M	-118.75M	-164.57M	833.32M

Kilroy Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 43.34 is above the 20-day moving average (MA) of 42.83, above the 50-day MA of 39.92, and above the 200-day MA of 35.65, indicating a bullish trend. The MACD of 1.31 indicates Positive momentum. The RSI at 63.34 is Neutral, neither overbought nor oversold. The STOCH value of 65.71 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	69 Neutral	$5.22B	24.06	4.06%	4.95%	2.26%	10.15%
CUZ	68 Neutral	4.81B	77.49	0.82%	4.54%	13.07%	-4.94%
HIW	68 Neutral	3.38B	26.75	5.44%	6.44%	-2.16%	-16.41%
VNO	65 Neutral	8.54B	10.13	14.36%	1.83%	1.38%	4370.96%
SLG	61 Neutral	4.63B	-106.23	0.78%	5.14%	15.25%	79.18%
DEI	58 Neutral	3.21B	73.11	1.89%	4.92%	-0.57%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Kilroy Realty Corporate Events

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.

Kilroy Realty Reports Strong Q2 2025 Financial Results

Kilroy Realty Corporation reported strong financial results for the second quarter of 2025, with revenues of $289.9 million and net income of $68.4 million, marking significant improvements from the previous year. The company achieved substantial leasing activity, executing over 400,000 square feet of leases, and made progress in capital recycling, including the sale of properties and land. This reflects an increased institutional interest in West Coast office assets, enhancing Kilroy’s market positioning.