Kilroy Realty (KRC)
NYSE:KRC
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Kilroy Realty
(NYSE:KRC)
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Rating:57Neutral
Price Target:
$29.00
▲(2.76% Upside)
Action:ReiteratedDate:02/26/26
The score is driven mainly by mixed fundamentals—strong margins and operating cash flow but pressured by leverage, uneven free cash flow, and a sharp TTM revenue decline—while weak price momentum weighs on the outlook. Valuation (moderate P/E and high dividend yield) and a generally constructive earnings-call narrative around leasing and capital recycling help offset near-term occupancy and development-drag risks.
Positive Factors
Leasing Momentum
Sustained, above-average leasing and a >65% larger forward pipeline provide durable demand visibility across upcoming quarters. This elevates rent commencement prospects, supports cash flow predictability, and reduces stabilisation risk for newly developed or relet space over the medium term.
Negative Factors
Elevated Leverage
Sustained mid-to-high leverage reduces financial flexibility in a rising rate environment and limits capacity for opportunistic investment or aggressive buybacks. For an office/life‑science REIT, this increases refinancing and interest‑cost sensitivity over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing Momentum
Sustained, above-average leasing and a >65% larger forward pipeline provide durable demand visibility across upcoming quarters. This elevates rent commencement prospects, supports cash flow predictability, and reduces stabilisation risk for newly developed or relet space over the medium term.
Read all positive factors
Kilroy Realty (KRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.38B
Dividend Yield5.75%
Average Volume (3M)2.21M
Price to Earnings (P/E)89.5
Beta (1Y)1.00
Revenue Growth0.77%
EPS Growth62.58%
CountryUS
Employees229
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.10
Shares Outstanding118,503,050
10 Day Avg. Volume2,133,123
30 Day Avg. Volume2,211,388
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 Cap2.37
Enterprise Value/Revenue7.20
Enterprise Value/Gross Profit10.74
Enterprise Value/Ebitda9.91
Forecast
1Y Price Target
$35.50Price Target Upside25.80% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)0.31
Revenue Forecast (FY)$1.06B
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 Key Performance Indicators (KPIs)
Kilroy Realty Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly constructive operational and strategic story: record leasing velocity, a >65% expansion in the forward leasing pipeline, high-profile KOP 2 leasing (including a 280k sq ft UCSF anchor), disciplined capital recycling (~$755M of sales/commitments) and targeted acquisitions (Nautilus, Maple Plaza) that strengthen the life-science and high-barrier market exposure. Offsetting headwinds include a negative Q4 cash same-property NOI (-7.2%), elevated development-related earnings drag (KOP 2 and Flower Mart operating expenses and capitalized interest), a 2026 occupancy dip driven by portfolio timing (guidance 76%–78%), and additional near-term leasing/stabilization risk at certain acquisitions (e.g., Nautilus). On balance, the operational momentum, strong pipeline, and disciplined capital deployment provide a path to offset near-term development and timing-related earnings pressure, leading to a net positive view of the company’s trajectory.Positive Updates
Record Leasing Velocity
Q4 leasing totaled ~827,000 sq ft ( strongest Q4 in six years ) and full-year leasing was ~2.1 million sq ft, a significant year-over-year increase. The forward leasing pipeline grew by >65% over the last year, providing material visibility into future rent commencements.
Negative Updates
Negative Q4 Cash Same-Property NOI Growth
Cash same-property NOI was down -7.2% in Q4. Major detractors included a sizable restoration fee recognized in Q4 2024 (detracting 350 bps), base rent (-190 bps driven by lower average occupancy YoY), and net recoveries (-140 bps, impacted by occupancy changes and 2024 real estate tax appeal wins).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Leasing Velocity
Q4 leasing totaled ~827,000 sq ft ( strongest Q4 in six years ) and full-year leasing was ~2.1 million sq ft, a significant year-over-year increase. The forward leasing pipeline grew by >65% over the last year, providing material visibility into future rent commencements.
Read all positive updates
Company Guidance
Management's 2026 guidance calls for FFO of $3.25–$3.45 per diluted share (midpoint $3.35); average occupancy of 76%–78% (midpoint, a ~390 bp YoY decline driven largely by KOP 2; ex‑KOP 2 occupancy 80%–81.5%); cash same‑property NOI growth (ex‑KOP 2) flat to -1.5% (midpoint) with base rent contributing ~+50 bps and net recoveries detracting ~‑125 bps; non‑cash GAAP NOI adjustments of $12–$14M (vs. just over $8M in 2025); NOI from development properties of roughly -$23.5M to -$25M; capitalized interest of $32–$34M; KOP 2 will begin flowing through ~ $5M/quarter of operating expenses and real estate taxes and ~ $10M/quarter of capitalized interest starting Feb 2026; Flower Mart capitalization is expected to cease end‑June 2026 (adding ~ $1M/quarter of opex and ~ $7M/quarter of cap interest thereafter); the company plans roughly $325M of operating dispositions in 2026 (including the $125M Kilroy Sabre Springs sale), and noted KOP 2’s anticipated stabilized cash yield is in the mid‑5% range (≈100 bps below original underwriting).Kilroy Realty Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.11B | 1.14B | 1.13B | 1.10B | 955.04M |
| Gross Profit | 745.51M | 762.76M | 778.62M | 775.93M | 685.46M |
| EBITDA | 808.51M | 735.49M | 708.81M | 659.85M | 1.05B |
| Net Income | 276.10M | 210.97M | 212.24M | 232.62M | 628.14M |
Balance Sheet | |||||
| Total Assets | 10.92B | 10.90B | 11.40B | 10.80B | 10.58B |
| Cash, Cash Equivalents and Short-Term Investments | 210.12M | 193.66M | 794.83M | 370.93M | 441.55M |
| Total Debt | 4.84B | 4.73B | 5.05B | 4.39B | 4.19B |
| Total Liabilities | 5.28B | 5.29B | 5.74B | 5.12B | 4.89B |
| Stockholders Equity | 5.42B | 5.38B | 5.43B | 5.44B | 5.44B |
Cash Flow | |||||
| Free Cash Flow | -121.65M | 40.17M | 58.77M | 5.63M | -1.28B |
| Operating Cash Flow | 566.31M | 541.15M | 602.59M | 592.24M | 516.40M |
| Investing Cash Flow | -240.03M | -225.04M | -800.40M | -553.19M | -747.88M |
| Financing Cash Flow | -312.66M | -660.58M | 360.60M | -118.75M | -164.57M |
Kilroy Realty Technical Analysis
Neutral
28.22
Price Trends
30.01
Negative
34.08
Negative
36.17
Negative
Market Momentum
-0.54
Negative
45.00
Neutral
35.95
Neutral
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 28.22 is above the 20-day moving average (MA) of 28.16, below the 50-day MA of 30.01, and below the 200-day MA of 36.17, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 35.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $3.38B | 89.50 | 5.11% | 5.75% | 0.77% | 62.58% | |
56 Neutral | $2.46B | 24.27 | 6.69% | 7.83% | -2.10% | -13.30% | |
56 Neutral | $5.63B | 7.05 | 15.43% | 2.24% | 2.41% | ― | |
54 Neutral | $3.84B | 106.88 | 0.85% | 5.08% | 16.38% | 3.60% | |
51 Neutral | $2.92B | -38.62 | -2.25% | 6.95% | 8.60% | ― | |
45 Neutral | $1.62B | -67.23 | 0.82% | 6.45% | -0.12% | ― |
* Real Estate Sector Average
KRC
Kilroy Realty
28.22
-0.86
-2.96%
CUZ
Cousins Properties
22.88
-2.30
-9.14%
DEI
Douglas Emmett
9.68
-3.31
-25.49%
HIW
Highwoods Properties
22.42
-2.82
-11.19%
SLG
SL Green Realty
38.42
-10.34
-21.21%
VNO
Vornado Realty
27.16
-6.38
-19.02%
Kilroy Realty Corporate Events
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...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Kilroy Realty Posts Mixed Q4 Results Amid Life Science Pivot
Neutral
Feb 9, 2026
On February 9, 2026, Kilroy Realty reported that for the fourth quarter of 2025 it generated $272.2 million in revenue, with net income to common shareholders falling to $12.4 million and funds from operations (FFO) at $117.2 million, reflecting l...
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.