Kilroy Realty (KRC)
NYSE:KRC
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Kilroy Realty
(NYSE:KRC)
Select Model
Select Model
Rating:62Neutral
Price Target:
$36.00
â–²(14.47% Upside)
Action:Reiterated
Date:05/20/26
The score is driven primarily by mixed financial performance—strong margins and operating cash flow but declining revenue, inconsistent free cash flow, and meaningful leverage. Offsetting this, the latest earnings call showed a clear improvement in near-term outlook with a raised FFO guide and strong leasing visibility, while technicals indicate improving momentum. Valuation is supported by a high dividend yield, but the negative P/E limits valuation confidence.
Positive Factors
High property-level margins & steady operating cash flow
Sustained high gross and net margins combined with roughly $580M of trailing‑12‑month operating cash flow indicate durable property economics. This level of recurring cash generation supports dividend payments, reinvestment in developments, and working capital over a 2–6 month horizon despite leasing cyclicality.
Negative Factors
Low reported occupancy with near‑term trough risk
Reported occupancy at 77.6% (81.5% ex KOP2) and guidance that Q2 is a trough point signal material vacant capacity to fill. Persistently low occupancy depresses rental income, raises downtime costs and concessions, and makes FFO and NOI sensitive to slower leasing cadence over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High property-level margins & steady operating cash flow
Sustained high gross and net margins combined with roughly $580M of trailing‑12‑month operating cash flow indicate durable property economics. This level of recurring cash generation supports dividend payments, reinvestment in developments, and working capital over a 2–6 month horizon despite leasing cyclicality.
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
$4.02B
Dividend Yield5.75%
Average Volume (3M)2.15M
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth-1.42%
EPS Growth8.81%
CountryUS
Employees229
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)1.85
Shares Outstanding116,278,810
10 Day Avg. Volume1,645,976
30 Day Avg. Volume2,151,324
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 Cap2.11
Enterprise Value/Revenue7.62
Enterprise Value/Gross Profit15.28
Enterprise Value/Ebitda11.08
Forecast
1Y Price Target
$35.30Price Target Upside12.24% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)0.3
Revenue Forecast (FY)$1.07B
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 r...
How the Company Makes Money
KRC primarily makes money by leasing space in its properties to tenants under commercial lease agreements and collecting recurring rental income. Its key revenue streams typically include (1) base rent from office and life science tenants, general...
Kilroy Realty Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call conveyed materially improved leasing fundamentals—especially in San Francisco—with strong Q1 productivity, meaningful signed-but-not-commenced revenue, upgraded FFO guidance, successful capital recycling, and a pre-leased high‑quality development JV that together point to improving cash flow durability and growth. Offsetting items include lower reported occupancy (77.6%), negative aggregate leasing spreads driven by long‑vacant space, ongoing move-out activity concentrated in Q2, and uncertainty/timing risk surrounding the Flower Mart project. On balance, positive leasing momentum, guidance upgrades, and proactive capital allocation outweigh the near-term occupancy and project timing headwinds.Positive Updates
Strong Leasing Productivity
Total leasing productivity of ~568,000 square feet in Q1, more than double first quarter performance year-over-year, the strongest Q1 leasing since 2017.
Negative Updates
Reported Occupancy Pressure
Portfolio occupancy ended the quarter at 77.6% (including KOP2); excluding KOP2 occupancy would be 81.5%. Company expects Q2 to be the occupancy trough due to the timing of move-outs.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Leasing Productivity
Total leasing productivity of ~568,000 square feet in Q1, more than double first quarter performance year-over-year, the strongest Q1 leasing since 2017.
Read all positive updates
Company Guidance
Kilroy updated 2026 guidance to FFO of $3.49–$3.63 per diluted share (midpoint +$0.21), driven by stronger core operations and a timing change on Flower Mart (now assumed to stop expense capitalization late Q4); when capitalization ends roughly <$1M of quarterly operating expenses and real‑estate taxes plus ~$7M of quarterly capitalized interest will begin hitting earnings, a change that increased guidance by about $15–$16 million (≈$0.14/share). Cash same‑property NOI growth is now expected to be 25–125 basis points (a 150‑bp midpoint upgrade), aided by a $5.9M 23andMe settlement contributing ~90 bps and improved net expenses/occupancy adding ~60 bps; signed‑but‑not‑commenced leases exceed 1.0M sq ft representing nearly $78M of contractually obligated annualized base rent, management raised full‑year average occupancy guidance ~25 bps at the midpoint, and they also pushed up the top end of operating‑asset disposition guidance.Kilroy Realty Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11B | 1.11B | 1.14B | 1.13B | 1.10B | 955.04M |
| Gross Profit | 554.46M | 745.51M | 762.76M | 778.62M | 775.93M | 685.46M |
| EBITDA | 764.75M | 808.51M | 735.49M | 708.81M | 659.85M | 1.05B |
| Net Income | 217.82M | 276.10M | 210.97M | 212.24M | 232.62M | 628.14M |
Balance Sheet | ||||||
| Total Assets | 10.77B | 10.92B | 10.90B | 11.40B | 10.80B | 10.58B |
| Cash, Cash Equivalents and Short-Term Investments | 224.32M | 210.12M | 193.66M | 794.83M | 370.93M | 441.55M |
| Total Debt | 4.72B | 4.84B | 4.73B | 5.05B | 4.39B | 4.19B |
| Total Liabilities | 5.29B | 5.28B | 5.29B | 5.74B | 5.12B | 4.89B |
| Stockholders Equity | 5.27B | 5.42B | 5.38B | 5.43B | 5.44B | 5.44B |
Cash Flow | ||||||
| Free Cash Flow | -35.44M | -121.65M | 40.17M | 58.77M | 5.63M | -1.28B |
| Operating Cash Flow | 580.09M | 566.31M | 541.15M | 602.59M | 592.24M | 516.40M |
| Investing Cash Flow | -148.32M | -240.03M | -225.04M | -800.40M | -553.19M | -747.88M |
| Financing Cash Flow | -385.58M | -312.66M | -660.58M | 360.60M | -118.75M | -164.57M |
Kilroy Realty Technical Analysis
Positive
31.45
Price Trends
30.96
Positive
32.29
Positive
35.92
Negative
Market Momentum
0.85
Positive
57.41
Neutral
33.93
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 31.45 is below the 20-day moving average (MA) of 33.90, above the 50-day MA of 30.96, and below the 200-day MA of 35.92, indicating a neutral trend. The MACD of 0.85 indicates Positive momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 33.93 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 | $2.81B | 18.44 | 3.94% | 7.83% | 0.88% | -47.90% | |
66 Neutral | $6.48B | -168.42 | 13.16% | 2.24% | -0.27% | 600.83% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $4.34B | -37.77 | -0.11% | 5.08% | 12.11% | -109.72% | |
62 Neutral | $4.02B | -43.06 | 4.05% | 5.75% | -1.42% | 8.81% | |
60 Neutral | $3.19B | -8.32 | -3.89% | 6.95% | 7.65% | -478.02% | |
54 Neutral | $1.93B | -157.88 | -1.35% | 6.45% | 1.04% | -152.10% |
* Real Estate Sector Average
KRC
Kilroy Realty
33.97
4.58
15.58%
CUZ
Cousins Properties
26.50
0.79
3.05%
DEI
Douglas Emmett
11.46
-1.68
-12.80%
HIW
Highwoods Properties
25.65
-0.97
-3.65%
SLG
SL Green Realty
43.27
-9.51
-18.03%
VNO
Vornado Realty
31.98
-4.31
-11.87%
Kilroy Realty Corporate Events
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...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Kilroy Realty Posts Q1 Loss While Boosting Leasing, Guidance
Neutral
Apr 27, 2026
Kilroy Realty reported first-quarter 2026 results on April 27, 2026, with revenues of $270.1 million roughly flat year-on-year but swinging to a net loss of $19.3 million versus prior-year profit, while funds from operations fell to $108.8 million...
Business Operations and StrategyExecutive/Board Changes
Kilroy Realty Reshapes Board Leadership and Governance Structure
Positive
Feb 26, 2026
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 becam...
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.