📊 KRC Key Takeaways
Is Kilroy Realty Corp. (KRC) a Good Investment?
KRC demonstrates strong operational fundamentals with 29.4% operating margins and robust free cash flow of $150.7M, but faces significant headwinds including net losses despite positive operations and concerning 2.0x interest coverage. The unexplained 5,731% revenue spike raises data quality questions and warrants clarification before confident assessment.
Kilroy generates strong operating cash flow with modest leverage, supporting balance sheet resilience and dividend capacity. However, thin operating margins and tight interest coverage point to rate and leasing sensitivity, while net income appears boosted by non-operating items. Emphasis should be on cash-based metrics (FFO/AFFO) rather than GAAP earnings to assess durability.
Kilroy Realty Corp. Key Strengths (KRC)
- Strong operating margin of 29.4% indicates operational efficiency
- Substantial free cash flow generation of $150.7M with 55.8% FCF margin supports dividend capacity
- Moderate leverage with 0.43x Debt/Equity ratio appropriate for REIT structure
- Improving diluted EPS year-over-year (+31.1%) despite current losses
- Robust operating cash flow and high FCF margin
- Moderate leverage (0.41x D/E) with sizable equity base
- EPS growth YoY despite a challenging environment
KRC Stock Risks: Kilroy Realty Corp. Investment Risks
- Unexplained massive revenue spike of 5,731% YoY suggests unusual items or accounting changes requiring clarification
- Negative net income of -$19.3M despite positive $79.3M operating income indicates severe financing burden or one-time charges
- Tight interest coverage of 2.0x leaves minimal margin for error and is vulnerable to rate increases or business deterioration
- Negative returns on equity (-0.4%) and assets (-0.2%) despite asset base of $10.8B
- Low cash position of $192.9M relative to $2.2B long-term debt and refinancing needs
- Tight interest coverage (2.0x) raises refinancing/rate risk
- Low operating margin (7.1%) and reliance on non-operating gains
- Limited cash buffer relative to debt and ongoing capital needs
Key Metrics to Watch
- Interest coverage ratio trend - critical indicator of financial distress risk
- Operating cash flow sustainability and consistency for dividend coverage
- Explanation and normalization of revenue metrics
- Debt refinancing activity and terms given 2.0x coverage constraint
- Interest coverage and debt maturity schedule
- FFO/AFFO and payout coverage versus cash needs
Kilroy Realty Corp. (KRC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 55.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
KRC Profit Margin, ROE & Profitability Analysis
KRC vs Real Estate Sector: How Kilroy Realty Corp. Compares
How Kilroy Realty Corp. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kilroy Realty Corp. Stock Overvalued? KRC Valuation Analysis 2026
Based on fundamental analysis, Kilroy Realty Corp. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kilroy Realty Corp. Balance Sheet: KRC Debt, Cash & Liquidity
KRC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kilroy Realty Corp.'s revenue has grown significantly by 74% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.80 reflects profitable operations.
KRC Revenue Growth, EPS Growth & YoY Performance
KRC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.6M | -$14.7M | $-0.16 |
| Q3 2025 | $4.0M | $43.7M | $0.44 |
| Q2 2025 | $4.8M | $43.7M | $0.41 |
| Q1 2025 | $3.7M | $43.7M | $0.33 |
| Q3 2024 | $2.9M | $54.5M | $0.44 |
| Q2 2024 | $3.0M | $54.5M | $0.41 |
| Q1 2024 | $2.7M | $55.7M | $0.42 |
| Q3 2023 | $2.9M | $54.0M | $0.45 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kilroy Realty Corp. Dividends, Buybacks & Capital Allocation
KRC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kilroy Realty Corp. (CIK: 0001025996)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 20, 2026 | 4 | xslF345X06/wk-form4_1779309621.xml | View → |
| May 20, 2026 | 4 | xslF345X06/wk-form4_1779309615.xml | View → |
| May 20, 2026 | 4 | xslF345X06/wk-form4_1779309609.xml | View → |
| May 20, 2026 | 4 | xslF345X06/wk-form4_1779309603.xml | View → |
| May 20, 2026 | 4 | xslF345X06/wk-form4_1779309595.xml | View → |
❓ Frequently Asked Questions about KRC
What is the AI rating for KRC?
Kilroy Realty Corp. (KRC) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 63% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KRC's key strengths?
Claude: Strong operating margin of 29.4% indicates operational efficiency. Substantial free cash flow generation of $150.7M with 55.8% FCF margin supports dividend capacity. ChatGPT: Robust operating cash flow and high FCF margin. Moderate leverage (0.41x D/E) with sizable equity base.
What are the risks of investing in KRC?
Claude: Unexplained massive revenue spike of 5,731% YoY suggests unusual items or accounting changes requiring clarification. Negative net income of -$19.3M despite positive $79.3M operating income indicates severe financing burden or one-time charges. ChatGPT: Tight interest coverage (2.0x) raises refinancing/rate risk. Low operating margin (7.1%) and reliance on non-operating gains.
What is KRC's revenue and growth?
Kilroy Realty Corp. reported revenue of $270.1M.
Does KRC pay dividends?
Kilroy Realty Corp. pays dividends, with $64.5M distributed to shareholders in the trailing twelve months.
Where can I find KRC SEC filings?
Official SEC filings for Kilroy Realty Corp. (CIK: 0001025996) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KRC's EPS?
Kilroy Realty Corp. has a diluted EPS of $-0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KRC's fundamental grade?
Based on our AI fundamental analysis in May 2026, Kilroy Realty Corp. has a B grade with 63% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KRC stock overvalued or undervalued?
Valuation metrics for KRC: ROE of -0.4% (sector avg: 8%), net margin of -7.1% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is KRC's AI grade for 2026?
Our dual AI analysis gives Kilroy Realty Corp. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KRC's free cash flow?
Kilroy Realty Corp.'s operating cash flow is $150.7M, with capital expenditures of N/A. FCF margin is 55.8%.
How does KRC compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -7.1% (avg: 20%), ROE -0.4% (avg: 8%), current ratio N/A (avg: 1.5).