One-glance verdict
Within fair range
$32.86 our estimate vs market $35.82
Wall Street consensus: $39.71 (20.8% higher than our fair-value estimate)
9% above our estimate
Fundamentals snapshot
Kilroy Realty Corporation
KRC · NYQ · Real Estate · REIT - Office
Current price
$35.82
52-week range
$27.36 - $43.58
Market cap
$4.21B
Balance sheet
Stretched
2.46x Stretched
Net debt $4.41B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 0.9% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 610.0% above its 5-year average P/E.
- Risk Net debt grew 12.2% over 3 years.
What this company does
Kilroy Realty Corporation
Kilroy Realty Corporation (KRC) is a company that owns and manages large office buildings, especially for tech and science companies, in major West Coast cities. The money KRC makes primarily comes from rent collected from these buildings, and strong rent collection shows that businesses are doing well and need office space, which is good for KRC's income. This means KRC is essentially a landlord to successful businesses.
How the company got here
Kilroy Realty Corporation, founded in 1947, has grown over seven decades into a major player in commercial real estate. Initially focused on developing properties, the company has evolved into a publicly traded Real Estate Investment Trust (REIT). A REIT is a company that owns, operates, or finances income-generating real estate, allowing individual investors to own a piece of large-scale properties. Kilroy's strategic expansion has led it to operate in key West Coast markets like the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and more recently, Austin.
What it actually does
Kilroy Realty Corporation primarily functions as a landlord, owning and managing large commercial properties, with a focus on office and life science spaces. Think of them as the owners of the buildings where many companies house their employees and conduct their research. They lease these spaces to businesses, generating rental income. The company also develops new properties and has a smaller portfolio of residential units.
Office Properties
This is the core of Kilroy's business, where they own and lease out office buildings. These are the spaces where companies, particularly in technology, media, life sciences, and professional services, set up their operations. Kilroy earns revenue by collecting rent from these business tenants. As of mid-2026, their stabilized portfolio included about 17.1 million square feet of primarily office and life science space, with a significant portion already leased out to tenants.
Life Science Properties
A growing and important segment for Kilroy involves properties specifically designed for life science companies, such as biotechnology and pharmaceutical firms. These spaces often require specialized infrastructure and amenities to support research and development activities. Kilroy's focus on this sector leverages the demand from innovative companies in its key markets. This segment is part of the larger stabilized portfolio mentioned in the office properties section.
Residential Properties
While primarily focused on commercial real estate, Kilroy also has a smaller segment dedicated to residential properties. This includes apartment buildings, such as their units in San Diego. They generate income from these properties by renting out apartments to individuals and households. This segment, though smaller in scale compared to their office and life science holdings, shows a consistent occupancy rate.
What management is betting on now
Kilroy Realty Corporation is heavily focused on developing and managing modern, sustainable, and innovative real estate. Their strategy emphasizes creating environments that boost creativity and productivity for their tenants, particularly in high-growth sectors like technology and life sciences. By concentrating on prime locations and incorporating sustainable building practices, they aim to attract and retain leading companies, ensuring long-term rental income and property value appreciation.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$69.48M
FY2024 Q3
$147.16M
FY2024 Q4
$72.31M
FY2025 Q1
$115.61M
FY2025 Q2
$118.44M
FY2025 Q3
$148.68M
FY2025 Q4
$67.56M
FY2026 Q1
$120.75M
Revenue
$270.05M
Net income
—
Diluted EPS
-0.16
Operating cash flow
$150.69M
Free cash flow
$120.75M
Fetching…
Sources
Revenue
$272.19M
Net income
—
Diluted EPS
0.11
Operating cash flow
$109.08M
Free cash flow
$67.56M
Fetching…
Sources
Revenue
$279.74M
Net income
—
Diluted EPS
1.31
Operating cash flow
$176.57M
Free cash flow
$148.68M
Fetching…
Sources
Revenue
$289.89M
Net income
—
Diluted EPS
0.57
Operating cash flow
$143.75M
Free cash flow
$118.44M
Fetching…
Sources
Revenue
$270.84M
Net income
—
Diluted EPS
0.33
Operating cash flow
$136.92M
Free cash flow
$115.61M
Fetching…
Sources
Revenue
$286.38M
Net income
—
Diluted EPS
0.50
Operating cash flow
$108.24M
Free cash flow
$72.31M
Fetching…
Sources
Revenue
$289.94M
Net income
—
Diluted EPS
0.44
Operating cash flow
$176.35M
Free cash flow
$147.16M
Fetching…
Sources
Revenue
$280.73M
Net income
—
Diluted EPS
0.41
Operating cash flow
$88.69M
Free cash flow
$69.48M
Fetching…
Sources
Is it cheap or expensive?
Fair value $32.86 vs current price $35.82
Wall Street consensus is the average analyst price target: $39.71 (20.8% higher than our fair-value estimate).
Our most-likely fair value is $32.86 a share — about 8.3% away from today's price of $35.82, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $4.4B. Interest coverage 2.5x.
Net debt
$4.41B
Interest coverage
2.46x
Kilroy Realty Corporation's profit covers its interest bill about 2.5 times over. which is stronger than every peer shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
KRC
BASELINE
Kilroy Realty Corporation
Total debt $4.50B Interest coverage 2.46x This is the baseline the peer rows are being compared against.
Total debt $17.33B Interest coverage 1.55x -37% vs KRC Carries about 1.6x less debt cushion than KRC.
Total debt $8.19B Interest coverage 0.81x -67% vs KRC Carries about 3.0x less debt cushion than KRC.
Total debt $6.37B Interest coverage 0.56x -77% vs KRC Carries about 4.4x less debt cushion than KRC.
Total debt $5.74B Interest coverage 0.71x -71% vs KRC Carries about 3.4x less debt cushion than KRC.
Total debt $3.74B Interest coverage -0.26x -100% vs KRC This peer has almost no interest-payment cushion compared with KRC.
What you should know
The case for and against KRC
3 Rewards
3 Risks
Rewards
-
Returns 0.9% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 6.0% with 30-year payout history.
Risks
-
Stock trades 610.0% above its 5-year average P/E.
-
Net debt grew 12.2% over 3 years.
-
Operating margin compressed from 29.6% to 21.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
143.28x
Forward P/E
106.93x
P/B
0.80x
P/S
3.87x
EV/EBITDA
15.05x
PEG ratio
1.82x
Profitability
How much profit each dollar creates
Gross margin
64.4%
Operating margin
21.7%
Net margin
2.6%
ROE
0.9%
ROA
1.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.83x
Current ratio
1.11x
Quick ratio
1.02x
Total debt
$4.50B
Total cash
$94.30M
Growth
How the business has been compounding
Revenue TTM
$1.11B
Revenue 5Y CAGR
3.9%
EPS TTM
0.25
EPS 5Y CAGR
5.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$580.09M
Free CF TTM
$450.29M
FCF margin
40.5%
Dividend
Shareholder payout
Yield
6.0%
Payout ratio
864.0%
Last ex-div date
2026-09-30