Kilroy Realty (KRC) AI Stock Analysis

• Market Cap: $4.82B
• Dividend Yield: 5.33%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.96
• 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: 1,053,597
• 30 Day Avg. Volume: 1,236,644
• 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: 1.99
• Enterprise Value/Revenue: 8.51
• Enterprise Value/Gross Profit: 12.65
• Enterprise Value/Ebitda: 11.79
• 1Y Price Target: $43.18
• Price Target Upside: 6.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $45.00 ▲(10.92% 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

Strong Leasing Activity

High leasing activity indicates strong demand for Kilroy's properties, enhancing revenue stability and showcasing effective market positioning.

Life Science Market Improvement

Growth in life sciences leasing reflects strategic positioning in a high-demand sector, supporting long-term revenue growth and diversification.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling reinvestment in development projects and strategic acquisitions for future growth.

Negative Factors

Challenges in Lease Expirations

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

NeueHouse Move-Out

Loss of a major tenant affects occupancy and revenue, necessitating efforts to quickly re-lease the vacated space to maintain income levels.

Decline in Revenue Growth

A decline in revenue growth suggests challenges in maintaining market share or pricing power, potentially impacting long-term profitability.

Kilroy Realty Business Overview & Revenue Model

Company Description

Kilroy Realty Corporation (KRC) is a publicly traded real estate investment trust (REIT) that focuses on the ownership, operation, and development of office and mixed-use properties in dynamic urban markets primarily on the West Coast of the United States. The company specializes in innovative, sustainable office spaces that cater to the needs of modern tenants, providing high-quality environments that foster collaboration and productivity. KRC's portfolio includes properties in key markets such as San Diego, Los Angeles, San Francisco, and Washington D.C.

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: Neutral
• Last Price: 40.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRC, the sentiment is Neutral. The current price of 40.57 is below the 20-day moving average (MA) of 41.47, below the 50-day MA of 41.48, and above the 200-day MA of 36.56, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 18.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$4.82B	14.89	5.94%	5.33%	0.77%	62.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HIW	65 Neutral	$2.81B	22.17	5.37%	7.68%	-2.10%	-13.30%
CUZ	63 Neutral	$4.10B	70.36	1.26%	5.09%	16.38%	3.60%
VNO	57 Neutral	$7.21B	8.22	15.97%	2.14%	2.41%	―
DEI	52 Neutral	$1.96B	94.27	1.03%	6.45%	-0.12%	―
SLG	49 Neutral	$3.22B	―	0.61%	6.99%	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.

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.