Kilroy Realty Corporation (KRC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Kilroy Realty Corporation (KRC) Real Estate Portfolio & Strategy

Kilroy Realty Corporation, a West Coast-focused REIT, develops and manages office and life science properties, distinguishing itself through sustainability initiatives and a strategic presence in key innovation hubs like San Francisco and Los Angeles, catering to technology, entertainment, and life science tenants.

What Is the Investment Thesis for KRC?

The company's commitment to sustainability and innovation enhances its appeal to high-quality tenants in technology, entertainment, and life sciences. KRC's stabilized portfolio, with a 92.2% occupancy rate as of September 30, 2020, demonstrates its ability to maintain high asset utilization. The dividend yield of 6.25% offers an attractive income stream for investors. Key growth catalysts include the completion of in-process development projects, representing a $1.9 billion investment and 2.3 million square feet of space, 90% of which is pre-leased. Potential risks include fluctuations in occupancy rates and economic downturns affecting tenant demand.

Based on FMP financials and quantitative analysis

KRC Key Highlights

Market Cap of $4.08B reflects KRC's significant presence in the West Coast real estate market.

• P/E ratio of 24.20 indicates the valuation relative to its earnings.
• Profit Margin of 19.6% demonstrates KRC's ability to generate profit from its revenue.
• Gross Margin of 49.9% shows the efficiency of KRC's operations in managing its properties.
• Dividend Yield of 6.25% provides an attractive income stream for investors.

Who Are KRC's Competitors?

KRC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are KRC's Key Strengths?

Strong presence in key West Coast markets.

• Focus on high-growth life science and technology sectors.
• Commitment to sustainability and innovative building designs.
• High occupancy rates in stabilized portfolio.

What Are KRC's Weaknesses?

Geographic concentration in the West Coast makes it vulnerable to regional economic downturns.

• Relatively low occupancy rates in San Diego residential units.
• Exposure to fluctuations in office space demand.
• Reliance on key tenants in specific industries.

What Could Drive KRC Stock Higher?

KRC catalyst: Completion of in-process development projects, adding approximately 2.3 million square feet of office and life science space.

• Continued demand for office and life science space in key West Coast markets.
• Expansion of KRC's sustainability initiatives, attracting environmentally conscious tenants.
• Potential acquisitions of well-located properties with strong tenant profiles.
• Growth in the life science sector, driving demand for specialized lab and office facilities.

What Are the Key Risks for KRC?

Financial-distress signal — its Altman Z-Score of 0.69 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $2.4M recently.
• Economic downturns affecting tenant demand and occupancy rates.
• Increased competition from other REITs and property developers.
• Rising interest rates increasing borrowing costs.
• Changes in government regulations affecting real estate development.
• Geographic concentration in the West Coast makes KRC vulnerable to regional economic downturns.

What Are the Growth Opportunities for KRC?

• Expansion in Life Science Properties: KRC has a significant opportunity to expand its portfolio of life science properties. The life science sector is experiencing rapid growth, driven by advancements in biotechnology and increased healthcare spending. By increasing its investment in life science properties, KRC can capitalize on this growing market and attract high-quality tenants. As of September 30, 2020, 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.
• Strategic Acquisitions: KRC can pursue strategic acquisitions to expand its presence in key West Coast markets. By acquiring well-located properties with strong tenant profiles, KRC can increase its portfolio size and generate additional revenue. The company's experience in developing and managing office and mixed-use projects positions it well to identify and execute successful acquisitions. This approach allows KRC to quickly scale its operations and enhance its market position.
• Sustainability Initiatives: KRC's commitment to sustainability provides a competitive advantage and growth opportunity. As more companies prioritize environmentally friendly office spaces, KRC's sustainable building operations and innovative designs attract tenants seeking to reduce their carbon footprint. By continuing to invest in sustainability initiatives, KRC can differentiate itself from competitors and attract a growing segment of the market. The company has already earned global recognition for its sustainability efforts.
• Development Projects: KRC's in-process development projects represent a significant growth opportunity. These projects, with an estimated total investment of $1.9 billion, are expected to add approximately 2.3 million square feet of office and life science space to KRC's portfolio. With 90% of this space already leased, these projects are poised to generate substantial revenue upon completion. The company's expertise in development ensures that these projects are executed efficiently and effectively.
• Increased Occupancy Rates in Residential Units: KRC has the opportunity to increase occupancy rates in its residential units, particularly in San Diego. As of September 30, 2020, the company's residential units in San Diego had an occupancy rate of only 37.5%, compared to 85.0% in Hollywood. By implementing targeted marketing and leasing strategies, KRC can attract more tenants to its San Diego properties and improve overall occupancy rates. This would contribute to increased revenue and profitability.

What Are KRC's Competitive Advantages?

• Strong presence in high-demand West Coast markets.
• Reputation for sustainability and innovative building designs.
• Long-standing relationships with leading technology, entertainment, and life science companies.
• Expertise in developing and managing office and life science properties.

What Does KRC Do?

Kilroy Realty Corporation (KRC) is a real estate investment trust (REIT) established as a leading West Coast landlord and developer. With over seven decades of experience, KRC specializes in developing, acquiring, and managing office and mixed-use projects. The company has a significant presence in major West Coast markets, including San Diego, Greater Los Angeles, the San Francisco Bay Area, and the Pacific Northwest. KRC has gained global recognition for its commitment to sustainability, building operations, innovation, and design, positioning itself as a pioneer in creating sustainable real estate environments. KRC's approach focuses on modern business environments that foster creativity, productivity, and employee retention, attracting leading technology, entertainment, life science, and business services companies. As of September 30, 2020, KRC's stabilized portfolio comprised approximately 14.3 million square feet of primarily office and life science space, with a high occupancy rate of 92.2% and a lease rate of 95.5%. Additionally, the company managed 808 residential units in Hollywood and San Diego, with occupancy rates of 85.0% and 37.5%, respectively. KRC also had seven in-process development projects, representing an estimated total investment of $1.9 billion, encompassing approximately 2.3 million square feet of office and life science space, which was 90% pre-leased.

What Products and Services Does KRC Offer?

• Develop and manage office properties on the West Coast.
• Develop and manage life science properties on the West Coast.
• Acquire existing office and life science properties.
• Lease office and life science space to tenants.
• Manage residential units in Hollywood and San Diego.
• Focus on sustainability and innovative building designs.
• Operate as a Real Estate Investment Trust (REIT).

How Does KRC Make Money?

• Generate revenue through leasing office and life science space.
• Generate revenue from residential units.
• Increase property values through development and management.
• Distribute income to shareholders through dividends as a REIT.

What Industry Does KRC Operate In?

Kilroy Realty Corporation operates within the REIT - Office industry, which is influenced by economic cycles, interest rates, and demand for office and life science spaces. The West Coast market, where KRC has a strong presence, is characterized by high demand from technology and life science companies. Competitors include Vornado Realty Trust (VNO), Rexford Industrial Realty, Inc. (REXR), and Cousins Properties Incorporated (CUZ). The industry is seeing a trend towards sustainable and innovative building designs, which KRC has embraced, giving it a competitive edge.

Who Are KRC's Key Customers?

• Technology companies seeking office space.
• Entertainment companies seeking office space.
• Life science companies requiring specialized lab and office facilities.
• Business services companies needing office space.
• Residents seeking apartments in Hollywood and San Diego.

Company Profile

Kilroy Realty Corporation operates in the REIT - Office industry within the Real Estate sector. It is headquartered in Los Angeles, US. The company is led by CEO Angela Aman. KRC has traded publicly since 1997.

Return on equity for Kilroy Realty Corporation stands at 4.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.0%, showing how much profit it generates from its asset base. KRC trades at a trailing price-to-earnings ratio of 24.20, below the Real Estate sector average of ~29.00x. Its free cash flow yield is -0.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.06 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.7%, the inverse of the P/E and a quick read on earnings relative to price.

KRC Valuation & Market Position

With a $4.08B market cap, Kilroy Realty Corporation sits in the mid-cap segment of the market. Analyst price targets span from $31.00 to $44.00, with a consensus of $37.13. At the current price of $35.10, that implies approximately 6% upside potential. Relative to its peer group, KRC's quantitative score of 54/100 is below the peer average of 71/100.

Quarterly Financial Performance: Kilroy Realty Corporation

Revenue for Kilroy Realty Corporation came in at $272.4M during Q2 FY2026. The company recorded net income of $19.9M, with diluted EPS of $0.17. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Real Estate. Across the four most recent quarters, KRC averaged $0.36 in diluted EPS.

Kilroy Realty Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.69 places it in the distress zone, a signal of elevated financial risk.

Kilroy Realty Corporation has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 59.2% above estimates on average.

Over the past six months, Kilroy Realty Corporation insiders filed 69 SEC Form 4 transactions — 6 sales and 63 purchases. On net that is roughly 3K shares disposed (about $2.4M), a signal worth weighing alongside the fundamentals.

KRC Financials

KRC Latest News

KRC Analyst Consensus

KRC MoonshotScore

Common Questions About KRC (Real Estate)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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