Kilroy Realty

Kilroy Realty is a real estate investment trust that owns, develops and leases office, life science and mixed-use buildings on the West Coast and in Austin. Its markets are the San Francisco Bay Area, Los Angeles, Seattle, San Diego and Austin. At September 30, 2026, its stabilized portfolio had about 17.1 million square feet, which was 76.9% occupied and 83.0% leased.

It also owns 608 residential units in San Diego. Its tenants include technology, media, life science and professional services companies. Kilroy Oyster Point Phase 2 is a large life science campus in South San Francisco with low occupancy, and the Flower Mart project in San Francisco is a large development site.

The market prices Kilroy for weak office and life science demand on the West Coast. Its stabilized portfolio was only 76.9% occupied at September 30, 2026, and the large Kilroy Oyster Point Phase 2 campus was 49% leased and only 7% occupied. Funds from operations per share fell to $0.88 in Q3 2026 from $1.08 a year earlier, and net debt was 7.2 times the company's share of EBITDAre. Investors fear that vacancy stays high, that rents do not recover, and that the company must sell more buildings at low prices to keep its debt in control.

In addition, the Chief Financial Officer left on August 11, 2026. For the gap to close, three things must be true. Leases signed but not yet started must turn into occupancy, so that occupancy rises from the 77.0% to 77.5% average now expected for 2026. At September 30, 2026, leases signed but not yet started were 6.1% of the stabilized portfolio.

Kilroy must lease more space at Kilroy Oyster Point Phase 2, which costs money while it is empty. Kilroy must sell non-core assets at fair prices and keep its debt stable. The Q3 2026 report on October 22, 2026, showed strong leasing of about 815,000 square feet, but occupancy did not rise yet. The 2027 guidance with the Q4 2026 report in early 2027 gives the next evidence.

If these checks pass, the gap can close slowly over two to three years. The main reason it may not close is that office demand in San Francisco and Seattle recovers more slowly than leasing activity now suggests.

1. Oct 22, 2026Passed

   Q3 2026 earnings: occupancyOccupancy in line with the 76.5% to 78.0% average for 2026 and unchanged guidance pass; lower occupancy or a cut to guidance fails.Outcome: Kilroy now expects average 2026 occupancy of 77.0% to 77.5%, within the earlier range, and it narrowed its guidance to $3.55 to $3.59 with the same midpoint.
2. Jan 22, 2027 · est.Pending

   Q4 2026 results and 2027 guidanceGuidance for higher occupancy in 2027 and new leases at Kilroy Oyster Point Phase 2 pass; lower funds from operations per share without a path to recovery fail.

Every passed and failed checkpoint across all picks

• October 22, 2026Kilroy reported Q3 2026 results. Funds from operations were $0.88 per diluted share, down from $1.08 a year earlier. It signed about 815,000 square feet of leases, one of its highest quarterly totals since 2019. This included a 12-year renewal of about 243,000 square feet with Box at Crossing 900. GAAP and cash rents on second-generation leases rose 30.6% and 9.7%. The stabilized portfolio was 76.9% occupied and 83.0% leased. Kilroy narrowed its 2026 guidance to $3.55 to $3.59 of funds from operations per share, from $3.49 to $3.63. In August, it agreed to sell the land at Kilroy East Village in San Diego for $19.5 million, and it expects the sale to close in Q4 2026.
• August 11, 2026Kilroy said that its Chief Financial Officer, Jeffrey Kuehling, left the company on that day. Eliott Trencher, the Chief Investment Officer and a former Chief Financial Officer, became interim Chief Financial Officer. The company started a search for a new Chief Financial Officer and kept its 2026 guidance.
• July 27, 2026Kilroy reported Q2 2026 results. Funds from operations were $0.92 per diluted share, down from $1.13 a year earlier. It signed about 376,000 square feet of leases, and GAAP and cash rents on second-generation leases rose 21.0% and 6.1%. It kept its 2026 guidance of $3.49 to $3.63 of funds from operations per share. In April, it sold two residential towers in Hollywood for gross proceeds of $202.0 million, and in July it repaid $200 million of notes due October 2026.

Last earnings

October 22, 2026 (8-K on sec.gov)

Next earnings

Expected about January 22, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed October 23, 2026 · krc-20260930
• 8-KEarnings release and Investor disclosureFiled October 22, 2026 · Press release and exhibits
• 8-KChange of directors or officers and Investor disclosureFiled August 11, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Jun 30, 2026Filed July 28, 2026 · krc-20260630
• 8-KEarnings release and Investor disclosureFiled July 27, 2026 · Press release and exhibits
• 8-KNew material agreement and New debt or financial obligationFiled June 17, 2026 · krc-20260612
• 8-KChange of directors or officers and Shareholder vote resultsFiled May 19, 2026 · krc-20260519
• 10-QQuarterly report for the period ended Mar 31, 2026Filed April 28, 2026 · krc-20260331
• 8-KEarnings release and Investor disclosureFiled April 27, 2026 · Press release and exhibits
• 8-KChange of directors or officers and Investor disclosureFiled February 26, 2026 · krc-20260224

Every filing on SEC EDGAR (CIK 1025996)

• Occupancy is low. The stabilized portfolio was 76.9% occupied at September 30, 2026. If tenants do not renew, or new leases start late, funds from operations can fall more.
• Debt is high for an office REIT. Net debt was 7.2 times the company's share of EBITDAre at September 30, 2026. If earnings fall, or interest rates stay high when debt matures, Kilroy may have to sell assets at low prices.
• Kilroy Oyster Point Phase 2 and the Flower Mart project tie up capital. The company expects a negative NOI of about $21.0 million from development properties in 2026, and its guidance assumes that it capitalizes interest on the Flower Mart project only through December 2026. If that interest becomes an expense after 2026, funds from operations will be lower.
• The Chief Financial Officer left in August 2026, and the company still searches for a successor. A long search can slow financial decisions.

At September 30, 2026, total debt was $4.41 billion at face value: unsecured debt of $3.82 billion and secured debt of $596 million. Cash was $94 million, and Kilroy had borrowed $40 million under the $1.25 billion revolving credit facility. Read more

Yield at the current rate

6.0% (current annual rate, at today’s price)

Dividend yield

6.0% (last 12 months, at today’s price of $36.22)

Paid per share

$2.16 in the last 12 months (4 payments)

Current annual rate

$2.16 ($0.54 × 4 a year)

Payout ratio

93% of the last fiscal year’s earnings (the year that ended December 31, 2025)

Latest ex-dividend date

September 30, 2026, $0.54 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 1.9% a year. From 2015 to 2025, the dividend grew by about 4.4% a year.

One-off payments far above the usual dividend are left out of these numbers.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.