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Kilroy Realty
(NYSE:KRC)
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Rating:62Neutral
Price Target:
$36.00
â–¼(-3.23% Downside)
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 and rent growth
Strong leasing volume and positive releasing spreads indicate improving tenant demand and pricing power across signed leases. If sustained, these trends can support higher rental income, improve cash flow from existing assets, and strengthen portfolio economics as leases commence over the next several quarters.
Negative Factors
Low and declining occupancy
Occupancy of 77% leaves a substantial portion of the portfolio unleased and increases the time required to restore property-level cash flow. Large move-outs can create recurring vacancy, tenant improvement costs, and leasing commissions, limiting near-term NOI growth even when replacement rents are attractive.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing momentum and rent growth
Strong leasing volume and positive releasing spreads indicate improving tenant demand and pricing power across signed leases. If sustained, these trends can support higher rental income, improve cash flow from existing assets, and strengthen portfolio economics as leases commence over the next several 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
$4.02B
Dividend Yield6.31%
Average Volume (3M)1.39M
Price to Earnings (P/E)23.8
Beta (1Y)0.93
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. Volume1,414,208
30 Day Avg. Volume1,388,091
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 Cap2.24
Enterprise Value/Revenue8.24
Enterprise Value/Gross Profit16.92
Enterprise Value/Ebitda11.96
Forecast
1Y Price Target
$39.40Price Target Upside5.91% Upside
Rating ConsensusHold
Number of Analyst Covering10
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 primarily makes money by leasing space in its properties to commercial tenants and collecting contractual rental income. Its core revenue stream is base rent under office and life science leases, typically structured as long-term agr...
Kilroy Realty Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 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 | 753.81M | 819.47M | 735.49M | 708.81M | 702.15M | 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 | 288.80M | 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 | 5.23B | 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
37.20
Price Trends
35.24
Negative
35.97
Negative
33.69
Positive
Market Momentum
-0.37
Negative
49.68
Neutral
82.70
Negative
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 37.2 is above the 20-day moving average (MA) of 33.76, above the 50-day MA of 35.24, and above the 200-day MA of 33.69, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 82.70 is Negative, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $4.02B | 23.78 | 3.17% | 6.31% | -3.76% | -22.82% | |
59 Neutral | $10.31B | 31.75 | 5.80% | 4.74% | 1.88% | 7630.99% | |
53 Neutral | $4.55B | 672.02 | 0.14% | 4.63% | 11.89% | -89.22% | |
53 Neutral | $664.07M | -1.35 | -18.64% | 2.06% | 2.54% | 54.94% | |
52 Neutral | $7.93B | -8.17 | -5.70% | 6.33% | -8.40% | -4485.62% | |
50 Neutral | $1.64B | -71.67 | -1.21% | 7.76% | 0.78% | -167.70% |
* Real Estate Sector Average
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Kilroy Realty Corporate Events
Executive/Board ChangesFinancial Disclosures
Kilroy Realty Names Interim CFO, Reaffirms 2026 Guidance
Neutral
Aug 11, 2026
On August 11, 2026, Kilroy Realty announced the departure of Executive Vice President, Chief Financial Officer and Treasurer Jeffrey Kuehling, whose exit is classified as a termination without cause under his employment agreement and accompanied b...
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 ...
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.