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Kilroy Realty
(NYSE:KRC)
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Rating:62Neutral
Price Target:
$42.00
â–²(6.54% Upside)
Action:Reiterated
Date:07/28/26
The score is led by a constructive earnings-call backdrop (affirmed guidance, improved leasing metrics, and strengthened liquidity), supported by positive price trend versus key moving averages. These positives are tempered by pressured financial fundamentals (TTM earnings decline and persistently negative free cash flow) and only moderately attractive valuation (high yield but a P/E that isn’t clearly discounted given current headwinds).
Positive Factors
Leasing Momentum & Re-leasing Spreads
Significant re-leasing spreads indicate durable pricing power in core markets and validate demand for second-generation space. Sustained rent uplifts support future NOI and cash flow as vacated space is re-leased, reducing long-term revenue downside and aiding recovery of portfolio occupancy over multiple quarters.
Negative Factors
Occupancy Pressure from Large Move-Outs
Material move-outs produce sustained vacancy and revenue gaps because office and life-science leasing cycles are long. Lower occupancy strains near-term cash flow and increases dependence on re-leasing spreads and new commencements, introducing multi-quarter volatility to FFO and NOI recovery timelines.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing Momentum & Re-leasing Spreads
Significant re-leasing spreads indicate durable pricing power in core markets and validate demand for second-generation space. Sustained rent uplifts support future NOI and cash flow as vacated space is re-leased, reducing long-term revenue downside and aiding recovery of portfolio occupancy over multiple quarters.
Read all positive factors
Kilroy Realty Key Performance Indicators (KPIs)
Any
Number of Buildings, Stabilized Office Properties
Counts the number of office buildings, offering a view of the company's real estate portfolio size and diversification.
Counts the number of office buildings, offering a view of the company's real estate portfolio size and diversification.
Data provided by:
The Fly
The FlyKilroy Realty (KRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.56B
Dividend Yield5.56%
Average Volume (3M)1.26M
Price to Earnings (P/E)27.0
Beta (1Y)1.00
Revenue Growth-3.76%
EPS Growth-22.82%
CountryUS
Employees241
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)1.44
Shares Outstanding116,308,990
10 Day Avg. Volume1,244,744
30 Day Avg. Volume1,262,215
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)0.82
Price to Sales (P/S)4.00
P/FCF Ratio-36.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$37.92Price Target Upside-3.81% Downside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)0.25
Revenue Forecast (FY)$1.08B
Kilroy Realty Business Overview & Revenue Model
Company Description
Kilroy Realty Corporation (NYSE: KRC) is a distinguished real estate investment trust (REIT) and a leading developer on the West Coast of the United States. Its operations span key markets including San Diego, Greater Los Angeles, the San Francisc...
How the Company Makes Money
Kilroy Realty makes money primarily by leasing space in its owned and operated properties and collecting recurring rental income from tenants. Its core revenue stream is base rent under long-term commercial leases for office and life science space...
Kilroy Realty Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call emphasized broad-based leasing momentum, improving lease economics, an expanding forward pipeline and strengthened liquidity — supporting a constructive outlook for future NOI and cash flow growth. Headwinds remain: near-term occupancy was pressured by large move-outs, development-related NOI drag and some market-specific challenges. Management highlighted execution risk tied to timing of lease commencements and dispositions, but the weight of positive operational and capital improvements suggests a favorable trajectory.Positive Updates
Robust Leasing Volume and Momentum
Executed ~370,000 sq ft of new and renewal leases in Q2; year-to-date leasing volume ~944,000 sq ft, an increase of >40% versus the first six months of 2025.
Negative Updates
Occupancy Pressure from Large Move-Outs
Portfolio occupancy ended the quarter at 77%, down 60 basis points QoQ; two previously communicated large move-outs negatively impacted occupancy by ~140 basis points.
Read all updates
Q2-2026 Updates
Positive
Negative
Robust Leasing Volume and Momentum
Executed ~370,000 sq ft of new and renewal leases in Q2; year-to-date leasing volume ~944,000 sq ft, an increase of >40% versus the first six months of 2025.
Read all positive updates
Company Guidance
Kilroy affirmed prior full-year guidance with FFO of $3.49–$3.63 per diluted share and same-property NOI growth of +25 to +125 basis points, while development spend is guided at +/- $150 million; liquidity stands at roughly $1.6 billion after amending facilities (revolver upsized to $1.25 billion, maturity July 2030; term loan upsized to $250 million, extended to July 2031 with a $50 million delayed draw through June 2027) and an early $200 million private note repayment in July. Operationally, year-to-date leasing is ~944,000 sq ft (Q2 ~370,000 sq ft, >40% higher vs 1H'25), Q2 comparable GAAP rents were +21% and cash rents +6.1% (excluding >12 months vacant: GAAP +27.3%, cash +15.6%), signed-but-not-yet-commenced exceeds 1.0 million sq ft representing >$78 million ABR (ABR/sq ft >$75, ~30% above portfolio-wide ABR) with 86% triple-net (vs 53% portfolio), pipeline square footage +34% QoQ and LOI/late-stage pipeline +77% QoQ; other Q2 metrics: occupancy 77% (-60 bps QoQ), retention 27.9% in the quarter (30% YTD), cash same-property NOI +1.5% and Q2 FFO $0.92 (including a $5.9M bankruptcy settlement = $0.05/share); management noted a tougher Q3 YoY comp due to $4M (32 bps) of prior-year benefits.Kilroy Realty Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.09B | 1.11B | 1.14B | 1.13B | 1.10B | 955.04M |
| Gross Profit | 533.04M | 745.51M | 762.76M | 778.62M | 775.93M | 685.46M |
| EBITDA | 743.13M | 808.51M | 735.49M | 708.81M | 659.85M | 1.05B |
| Net Income | 169.28M | 276.10M | 210.97M | 212.24M | 232.62M | 628.14M |
Balance Sheet | ||||||
| Total Assets | 10.63B | 10.92B | 10.90B | 11.40B | 10.80B | 10.58B |
| Cash, Cash Equivalents and Short-Term Investments | 253.81M | 210.12M | 193.66M | 794.83M | 370.93M | 441.55M |
| Total Debt | 4.66B | 4.84B | 4.73B | 5.05B | 4.39B | 4.19B |
| Total Liabilities | 5.18B | 5.28B | 5.29B | 5.74B | 5.12B | 4.89B |
| Stockholders Equity | 5.44B | 5.42B | 5.38B | 5.43B | 5.44B | 5.44B |
Cash Flow | ||||||
| Free Cash Flow | -240.37M | -121.65M | 40.17M | 58.77M | 5.63M | -1.28B |
| Operating Cash Flow | 514.55M | 566.31M | 541.15M | 602.59M | 592.24M | 516.40M |
| Investing Cash Flow | -5.66M | -240.03M | -225.04M | -800.40M | -553.19M | -747.88M |
| Financing Cash Flow | -448.21M | -312.66M | -660.58M | 360.60M | -118.75M | -164.57M |
Kilroy Realty Technical Analysis
Positive
39.42
Price Trends
37.41
Positive
33.85
Positive
35.09
Positive
Market Momentum
0.49
Positive
51.71
Neutral
69.73
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 39.42 is above the 20-day moving average (MA) of 39.18, above the 50-day MA of 37.41, and above the 200-day MA of 35.09, indicating a neutral trend. The MACD of 0.49 indicates Positive momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 69.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KRC.
Kilroy Realty Risk Analysis
Kilroy Realty disclosed 51 risk factors in its most recent earnings report. Kilroy Realty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kilroy Realty Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.65B | 21.80 | 3.09% | 5.94% | 3.30% | 28.46% | |
66 Neutral | $8.08B | 10.33 | 13.16% | 1.87% | -0.27% | 600.83% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $5.19B | 767.64 | -0.43% | 3.98% | 11.89% | -89.22% | |
62 Neutral | $4.56B | 26.96 | 3.14% | 5.48% | -3.76% | -22.82% | |
61 Neutral | $4.04B | -20.68 | -4.61% | 4.62% | 7.51% | -386.65% | |
54 Neutral | $1.98B | -75.05 | -1.35% | 6.19% | 1.04% | -152.10% |
* Real Estate Sector Average
KRC
Kilroy Realty
39.00
3.66
10.37%
CUZ
Cousins Properties
31.40
6.04
23.84%
DEI
Douglas Emmett
11.90
-1.97
-14.22%
HIW
Highwoods Properties
33.32
6.94
26.31%
SLG
SL Green Realty
54.18
0.74
1.39%
VNO
Vornado Realty
39.93
2.12
5.60%
Kilroy Realty Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Kilroy Realty Posts Lower Q2 2026 Earnings, Affirms Guidance
Neutral
Jul 27, 2026
Kilroy Realty reported second-quarter 2026 results on July 27, 2026, showing revenues of $272.4 million, down from $289.9 million a year earlier, and net income available to common stockholders of $19.9 million, or $0.17 per diluted share, versus ...
Business Operations and StrategyPrivate Placements and Financing
Kilroy Realty Expands Credit Facilities, Boosting Liquidity and Flexibility
Positive
Jun 17, 2026
On June 17, 2026, Kilroy Realty’s operating partnership closed a fifth amended and restated senior unsecured revolving credit facility, increasing total capacity to $1.25 billion, extending the maturity to July 31, 2030, and modestly improvi...
Executive/Board ChangesShareholder Meetings
Kilroy Realty Shareholders Approve Incentive Plan and Board
Positive
May 19, 2026
At its annual meeting of stockholders held on May 19, 2026, Kilroy Realty shareholders approved an amended and restated 2006 Incentive Award Plan, increasing the aggregate share limit for equity awards by 1.7 million to a total of 14.32 million sh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.