Kilroy Realty (NYSE:KRC) Releases Earnings Results, Misses Expectations By $0.73 EPS

Kilroy Realty (NYSE:KRC) posted its earnings results on Monday. The real estate investment trust reported $0.17 EPS for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.73), Zacks reports. Kilroy Realty had a net margin of 15.47% and a return on equity of 3.02%. The business had revenue of $272.37 million for the quarter, compared to analyst estimates of $267.39 million. During the same quarter last year, the business earned $1.13 earnings per share. Kilroy Realty’s revenue was down 6.0% on a year-over-year basis. Kilroy Realty updated its FY 2026 guidance to 3.490-3.630 EPS.

Kilroy Realty Price Performance

Shares of Kilroy Realty stock opened at $38.61 on Wednesday. The business has a 50 day simple moving average of $37.53 and a two-hundred day simple moving average of $34.09. Kilroy Realty has a 12 month low of $27.36 and a 12 month high of $45.03. The stock has a market capitalization of $4.49 billion, a P/E ratio of 27.19 and a beta of 1.12. The company has a debt-to-equity ratio of 0.84, a current ratio of 2.09 and a quick ratio of 2.09.

Kilroy Realty Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Tuesday, June 30th were paid a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a yield of 5.6%. The ex-dividend date was Tuesday, June 30th. Kilroy Realty’s payout ratio is 152.11%.

Kilroy Realty News Roundup

Here are the key news stories impacting Kilroy Realty this week:

• Positive Sentiment: FFO exceeded expectations: Second-quarter Nareit-defined funds from operations were $0.92 per diluted share, slightly above the $0.90 consensus estimate, although down from $1.13 a year earlier. Kilroy Realty Tops Q2 FFO Estimates
• Positive Sentiment: 2026 outlook was maintained: Kilroy affirmed full-year Nareit-defined FFO guidance of $3.49 to $3.63 per share, broadly in line with the analyst forecast of $3.58. Kilroy Realty Second-Quarter Results
• Positive Sentiment: Leasing and capital recycling provided support: The REIT signed approximately 376,000 square feet of leases and completed previously announced residential asset dispositions for $202 million in gross proceeds. Management also cited improving commercial real estate fundamentals and growing demand in its West Coast markets. Kilroy Realty Q2 Earnings Call Transcript
• Neutral Sentiment: Dividend was maintained: Kilroy declared and paid its regular quarterly cash dividend of $0.54 per common share, supporting income appeal but offering no new catalyst.
• Negative Sentiment: Net income and reported EPS fell sharply: Net income available to common stockholders declined to $19.9 million, or $0.17 per diluted share, from $68.4 million, or $0.57, a year earlier. The reported EPS figure was well below the $0.90 consensus estimate cited by several reports. Kilroy Realty Q2 Earnings Snapshot
• Negative Sentiment: Revenue and occupancy remained pressured: Revenue dropped 6% year over year to $272.4 million, while the stabilized portfolio was 77.0% occupied and 81.5% leased at quarter-end. These figures reinforce concerns about near-term office demand and earnings growth.

Wall Street Analysts Forecast Growth

KRC has been the topic of a number of recent analyst reports. UBS Group set a $44.00 price target on Kilroy Realty in a research report on Tuesday, June 16th. Evercore upgraded Kilroy Realty from an “in-line” rating to an “outperform” rating and set a $42.00 price objective for the company in a research report on Monday, June 8th. Wells Fargo & Company upped their target price on Kilroy Realty from $31.00 to $33.00 and gave the stock an “equal weight” rating in a research note on Monday, June 1st. Needham & Company LLC reiterated a “buy” rating on shares of Kilroy Realty in a research report on Monday, June 8th. Finally, Barclays lifted their price target on shares of Kilroy Realty from $31.00 to $38.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 21st. Five analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $38.87.

Insider Activity

In related news, Director Jolie A. Hunt sold 15,800 shares of the stock in a transaction on Monday, June 29th. The stock was sold at an average price of $37.79, for a total value of $597,082.00. Following the completion of the transaction, the director directly owned 13,892 shares of the company’s stock, valued at approximately $524,978.68. This represents a 53.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Lauren N. Stadler sold 3,000 shares of the firm’s stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $34.65, for a total value of $103,950.00. Following the completion of the transaction, the insider owned 15,456 shares in the company, valued at $535,550.40. The trade was a 16.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 29,648 shares of company stock worth $1,120,958 over the last quarter. 0.83% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kilroy Realty

Large investors have recently modified their holdings of the business. Wiser Advisor Group LLC purchased a new position in shares of Kilroy Realty in the third quarter worth about $32,000. Caitong International Asset Management Co. Ltd purchased a new stake in Kilroy Realty during the 3rd quarter valued at about $40,000. EverSource Wealth Advisors LLC raised its holdings in Kilroy Realty by 36.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,888 shares of the real estate investment trust’s stock valued at $65,000 after acquiring an additional 502 shares during the last quarter. Danske Bank A S acquired a new stake in Kilroy Realty in the 3rd quarter valued at about $93,000. Finally, State of Wyoming acquired a new stake in Kilroy Realty in the 4th quarter valued at about $118,000. Hedge funds and other institutional investors own 94.22% of the company’s stock.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC) is a publicly traded real estate investment trust focused on the development, acquisition and management of high‐quality office and mixed‐use properties along the U.S. West Coast. The company’s portfolio encompasses major urban markets including Los Angeles, San Diego, the San Francisco Bay Area and Seattle. Kilroy Realty targets properties in transit‐oriented submarkets, blending workplace space with retail, residential and hospitality amenities to create vibrant, walkable neighborhoods.

Founded in the mid‐20th century by members of the Kilroy family, the company evolved from a regional landlord into one of the leading West Coast office landlords.