| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 26 | 24.4x | 17.8x | Bottom tier | |
Growth | 13 | -3.8% | 7.1% | Bottom tier | |
Quality | 33 | 2.7% | 4.5% | Bottom tier | |
Safety | 36 | 6.1x | 2.6x | Bottom tier | |
Capital Return | 70 | 6.19% | 2.12% | Top tier | |
Momentum | 51 | -8.2% | 2.9% | Around median | |
Sentiment | 77 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Kilroy Realty Corporation owns and operates a portfolio of high-quality office properties and life sciences facilities across five U.S. markets, with a prominent presence in San Francisco, Los Angeles, San Diego, Seattle, Bellevue, and Austin. Its operating business is primarily generated by leasing space and collecting base rents, while it uses asset and land sales and capital recycling to improve portfolio quality and liquidity. As of June 30, 2026, portfolio occupancy, including KOP Phase 2, was approximately 77%, while signed leases that had not yet commenced exceeded one million square feet and more than $78 million in annual base rent.
In Q2 fiscal 2026, the company generated funds from operations of $0.92 per diluted share, including $0.05 per share from a non-recurring $5.9 million bankruptcy settlement related to 2023. Same-property cash net operating income grew 1.5%, while rents on comparable new and renewed leases increased 21% on a GAAP basis and 6.1% on a cash basis; the increases were 27.3% and 15.6%, respectively, for spaces that had remained vacant for 12 months or less. The latest quarterly EDGAR figures available in the context, for Q1 fiscal 2026, show revenue of $270.1 million, a net loss of $19.3 million, and a loss per share of $0.16, compared with revenue of $1.1 billion, net income of $276.1 million, and earnings per share of $2.32 in fiscal 2025.
The demand mix reflects clear differences across markets and industries: the artificial intelligence ecosystem represents approximately one-third of active demand in San Francisco, while additional demand comes from defense, aerospace, robotics, and advanced manufacturing in South Bay, and from life sciences companies at KOP Phase 2. The signed-not-commenced lease backlog is distinguished by 86% of it being triple-net leases, compared with 53% of the existing portfolio, and by annual base rent exceeding $75 per square foot, 30% above the portfolio average; this gives it a potentially greater impact on net operating income when the leases commence.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $37.44, within a wide range of $31 to $44, while the highest target is close to the upper end of the 52-week range of $45.03, with the lower end of that range at $27.36. The “Neutral” consensus reflects a balance between improving leasing and the future lease backlog on one hand, and 77% occupancy and the risks associated with KOP Phase 2, Flower Mart, and the DIRECTV/AT&T expiration on the other; the absence of a displayed price-to-earnings multiple also makes analyst targets and the 52-week range clearer valuation references in the provided data.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The clearest driver is the commencement of signed leases that had not yet begun, which exceeded one million square feet and $78 million in annual base rent as of June 30, 2026. Their annual base rent exceeds $75 per square foot, 30% above the portfolio average. In addition, 86% are triple-net leases compared with 53% of the existing portfolio, giving them a greater impact on net operating income when rent collection begins.
Active demand in San Francisco exceeded 10 million square feet in Q2 fiscal 2026, the highest level since 2019, while effective rents increased approximately 15% year over year. A total of 7.5 million square feet was leased fiscal year-to-date in 2026, alongside a 4.5 million-square-foot decline in available supply. However, rents in KRC's San Francisco portfolio remain above the market, although management said the gap had narrowed during the two quarters preceding the call.
The artificial intelligence sector represents approximately one-third of the active demand pipeline in San Francisco according to the July 28, 2026 call, but it is not the only source of demand. Management cited rapid expansions, including Anthropic's 249 thousand-square-foot lease at 500 Howard followed by another 72 thousand-square-foot lease at 405 Howard. One move-in-ready space tenant at 201 Third also expanded into part of an additional floor during Q2 fiscal 2026, illustrating that some demand is progressing from company formation to subsequent expansion.
Touring activity at the project increased from 317 thousand square feet in Q1 fiscal 2026 to more than 800 thousand square feet in Q2. KRC executed a 38 thousand-square-foot lease with Olema Pharmaceuticals and said that all unleased space in the multi-tenant building was receiving active interest. However, life sciences lease execution timelines remain long, and KOP Phase 2 will be the main component of expected development spending of approximately $150 million in fiscal 2026.
2027 expirations total approximately one million square feet, with the largest portion coming from the DIRECTV/AT&T lease at Kilroy Airport Center during Q4 fiscal 2027. Excluding that lease, there is another expiration of approximately 80 thousand to 90 thousand square feet, after which individual sizes fall below 50 thousand square feet. The company is evaluating multiple options for the campus, including re-leasing or disposing of it, without announcing a final decision on the July 28, 2026 call.
The company maintained funds from operations guidance at $3.49 to $3.63 per diluted share and same-property net operating income growth guidance of 0.25% to 1.25%. The chief financial officer explained that excluding the non-recurring benefit of $0.05 per share from the Q2 fiscal 2026 run rate and then extending that rate leads approximately to the midpoint of the range. Reaching the high end depends on accelerating rent commencements during 2026, while the pace of asset sales and capital recycling represents the main source of variability in the second half.
