Kilroy Realty (KRC) AI Stock Analysis

• Market Cap: $8.29B
• Dividend Yield: 6.16%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.23
• Revenue Growth: 1.11%
• EPS Growth: -3.07%
• Country: US
• Employees: 229
• Sector: Real Estate
• Sector Strength: 73
• Industry: REIT - Office
• EPS (TTM): 0.33
• Shares Outstanding: 118,280,580
• 10 Day Avg. Volume: 1,310,120
• 30 Day Avg. Volume: 1,138,319
• PEG Ratio: -0.36
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 802.86
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 11.19
• Enterprise Value/Ebitda: 3.01
• 1Y Price Target: $38.10
• Price Target Upside: 8.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: $37.00 ▲(5.47%Upside)

Kilroy Realty scores a 72, driven by solid financial performance with strong profit margins and prudent debt management. Attractive valuation metrics and positive technical indicators further support the stock's appeal. However, challenges such as declining occupancy rates and macroeconomic uncertainties from the earnings call temper the outlook.

Positive Factors

Financial Performance

Q4 FFO beat expectations, indicating strong financial performance for the quarter.

Leasing Activity

Leasing activity was the strongest in five and a half years.

Valuation

The -15% YTD sell-off in KRC shares presents the opportunity to gain exposure to a high quality portfolio at a low valuation.

Negative Factors

Earnings Outlook

Forecast for core FFO year-over-year growth is negative for 2025 and 2026, with estimates below consensus, indicating potential challenges for KRC.

Occupancy Challenges

Occupancy continued to erode, active developments remain unleased, and 2025 guidance suggests tenant retention could fall short of the 30% level achieved in 2024.

Supply and Demand

There is a persistently elevated amount of available office space, including sublease space, in Kilroy's key markets.

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 recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity, productivity and employee retention for some of the world's leading technology, entertainment, life science and business services companies. KRC is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office and mixed-use projects. As of September 30, 2020, KRC's stabilized portfolio totaled approximately 14.3 million square feet of primarily office and life science space that was 92.2% occupied and 95.5% leased. The company also had 808 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 85.0% and 37.5%, respectively. In addition, KRC had seven in-process development projects with an estimated total investment of $1.9 billion, totaling approximately 2.3 million square feet of office and life science space. The office and life science space was 90% leased.

How the Company Makes Money

Kilroy Realty generates revenue primarily through its property portfolio, which includes leasing office and mixed-use spaces to a diverse range of tenants. The company's income is primarily derived from rental revenues collected under long-term lease agreements with tenants. Additionally, Kilroy Realty engages in the development and redevelopment of properties, which can contribute to revenue growth through property sales or increased rental income from enhanced or newly developed spaces. The company's strategic focus on sustainable and innovative property solutions also helps attract high-profile tenants, thus contributing to stable and potentially increasing cash flows.

Kilroy Realty Financial Statement Overview

Summary

Kilroy Realty's financial performance is solid with a stable income statement and balance sheet, although there is a need for improved free cash flow generation. The company has a strong profit margin and prudent debt management, but declining cash reserves and revenue growth could be areas of concern.

Income Statement

Kilroy Realty's income statement shows moderate stability and growth. The TTM gross profit margin is solid at 66.8%, though we've seen a slight decline in revenue with a recent negative growth rate of -0.68%. The net profit margin stands at 17.74%, indicating healthy profitability levels. However, the EBIT and EBITDA margins are consistent, which is a positive sign for operational efficiency.

Balance Sheet

The company's balance sheet appears stable with a debt-to-equity ratio of 0.88, which is reasonable for a REIT. Equity ratio is strong at 49.23%, demonstrating a well-capitalized structure, though the return on equity is relatively moderate at 3.74% TTM. The overall leverage is manageable, but the declining cash reserves could pose a risk if not addressed.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth, with a TTM free cash flow of $34.04 million, down from the previous period. The operating cash flow to net income ratio is favorable at 2.55, reflecting efficient cash conversion, though the free cash flow to net income ratio is low. Overall, the cash flow situation is stable but shows room for improvement in free cash flow generation.

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
764.86M	783.24M	778.62M	775.93M	685.46M	637.68M
	EBIT
326.98M	334.51M	329.91M	324.68M	282.67M	242.53M
	EBITDA
705.16M	735.49M	708.81M	640.75M	553.33M	538.41M
	Net Income Common Stockholders
199.88M	210.97M	212.24M	232.62M	628.14M	187.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
175.90M	193.66M	510.16M	347.38M	441.55M	759.47M
	Total Assets
10.88B	10.90B	11.40B	10.80B	10.58B	10.00B
	Total Debt
4.73B	4.73B	5.05B	4.39B	4.19B	4.02B
	Net Debt
4.58B	4.56B	4.54B	4.04B	3.78B	3.29B
	Total Liabilities
5.30B	5.29B	5.74B	5.12B	4.89B	4.72B
	Stockholders Equity
5.36B	5.38B	5.43B	5.44B	5.44B	5.03B
Cash Flow		Free Cash Flow
34.04M	40.17M	58.77M	5.63M	-1.28B	-160.47M
	Operating Cash Flow
510.20M	541.15M	602.59M	592.24M	516.40M	455.59M
	Investing Cash Flow
-378.55M	-225.04M	-800.40M	-553.19M	-747.88M	-542.13M
	Financing Cash Flow
-839.94M	-660.58M	360.60M	-118.75M	-164.57M	833.32M

Kilroy Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 35.08 is above the 20-day moving average (MA) of 33.94, above the 50-day MA of 32.60, and below the 200-day MA of 35.77, indicating a neutral trend. The MACD of 0.84 indicates Negative momentum. The RSI at 60.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KRC.

Kilroy Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	72 Outperform	$8.29B	20.87	3.69%	6.16%	1.11%	-3.07%
BXP	67 Neutral	$12.47B	732.74	-0.10%	5.47%	3.74%	-102.51%
CUZ	66 Neutral	$5.13B	91.19	1.15%	4.19%	10.93%	-31.07%
HIW	66 Neutral	$3.43B	19.91	7.21%	6.29%	-2.01%	31.64%
Sector *	61 Neutral	$2.83B	10.89	0.42%	9.23%	5.94%	-21.26%
DEI	61 Neutral	$3.00B	46.79	2.49%	5.13%	-1.98%	―
SLG	58 Neutral	$4.92B	663.10	-0.13%	4.77%	13.36%	94.82%

Kilroy Realty Corporate Events

Kilroy Realty Holds 2025 Annual Stockholders Meeting

Kilroy Realty Corporation held its 2025 annual meeting of stockholders on May 20, 2025. During the meeting, all director nominees were elected to serve until the 2026 annual meeting, the compensation of the Company’s named executive officers was approved on an advisory basis, and Deloitte & Touche LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025.

The most recent analyst rating on (KRC) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Kilroy Realty stock, see the KRC Stock Forecast page.

Kilroy Realty Announces Departure of Chief Accounting Officer

Kilroy Realty announced that Merryl Werber, the Senior Vice President, Chief Accounting Officer, and Controller, will leave the company on January 9, 2026, to pursue other opportunities. The company has started the search for her replacement, and her departure is not due to any disagreements over financial statements or accounting practices.

The most recent analyst rating on (KRC) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Kilroy Realty stock, see the KRC Stock Forecast page.

Kilroy Realty Reports Strong Q1 2025 Financial Results

On May 5, 2025, Kilroy Realty Corporation reported its financial results for the first quarter ended March 31, 2025, highlighting a strong start to the year despite market volatility. The company achieved revenues of $270.8 million and a net income of $39.0 million, with significant leasing activity and progress in its development projects. Kilroy also announced an agreement to sell a portion of its Santa Fe Summit site, which is expected to close in 2026, indicating strategic moves to monetize its land assets.