Track market-moving stories before they get noisy

Kilroy Realty Corp. remains undervalued at 10.4x forward P/FFO and offers a 5.8% yield. KRC demonstrates strong leasing momentum, with Q3 leased occupancy rising to 83% and rent growth of 31% GAAP and 10% on a cash basis. A substantial signed-not-commenced lease pipeline and AI/life science tenant demand position KRC in a return to growth.

Kilroy Realty Corporation (KRC) Q3 2026 Earnings Call October 23, 2026 1:00 PM EDT

Company Participants

John Perry
Angela Aman - CEO & Director
Eliott Trencher - Executive VP, Chief Investment Officer, Interim CFO & Treasurer
A. Paratte - Executive VP & Chief Leasing Officer

Conference Call Participants

Jana Galan - BofA Securities, Research Division
Seth Bergey - Citigroup Inc., Research Division
Steve Sakwa - Evercore ISI Institutional Equities, Research Division
Blaine Heck - Wells Fargo Securities, LLC, Research Division
Nicholas Yulico - Scotiabank Global Banking and Markets, Research Division
Anthony Paolone - JPMorgan Chase & Co, Research Division
Caitlin Burrows - Goldman Sachs Group, Inc., Research Division
Michael Carroll - RBC Capital Markets, Research Division
Peter Abramowitz - Deutsche Bank AG, Research Division
Dylan Burzinski - Green Street Advisors, LLC, Research Division
John Kim - BMO Capital Markets Equity Research
Upal Rana - KeyBanc Capital Markets Inc., Research Division

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to the Kilroy Realty Corporation Third Quarter 2026 Earnings Conference Call. [Operator Instructions]

I will now turn the call over to John Perry, Senior Vice President of Investor Relations and Capital Markets. John, please go ahead.

John Perry

Thanks, Marina. Good morning, everyone. Thank you for joining us, and welcome to the Kilroy Realty Corporation Third Quarter 2026 Earnings Call. On the call today are Angela Aman, CEO; and Eliott Trencher, EVP, CIO and Interim CFO. In addition, Rob Paratte, EVP, Chief Leasing Officer, will be available for Q&A.

Please note that some of the information that will be discussed during this call is forward-looking in nature. Please refer to the company's supplemental package for a statement regarding forward-looking information on this call and in the supplemental. This call is being webcast live on the company's website and will be available for replay. The company's earnings release and supplemental package have been filed

LOS ANGELES--(BUSINESS WIRE)--Kilroy Realty Corporation (NYSE: KRC) (“Kilroy” or the “Company”) today reported financial and operational results for the third quarter ended September 30, 2026.

“Momentum in our West Coast markets continued to accelerate in the third quarter, with over 800,000 square feet of long-term leases signed, representing one of the Company’s highest quarterly leasing volumes since 2019,” said Angela Aman, Chief Executive Officer. “The breadth of activity was particularly notable, as we recorded sequential leased occupancy gains across all five of our regions and strong re-leasing spreads, driven by activity from a wide variety of users and industries. Looking ahead, our high-quality portfolio, solid balance sheet, and nimble approach position us well to capitalize on the real-time fundamental improvements we are seeing across our regions.”

Financial Results

Revenues of $271.6 million for the quarter ended September 30, 2026, as compared to $279.7 million for the quarter ended September 30, 2025 Net income available to common stockholders of $15.5 million, or $0.13 per diluted share, for the quarter ended September 30, 2026, as compared to $156.2 million, or $1.31 per diluted share, for the quarter ended September 30, 2025 Funds from operations (“FFO”) of $104.6 million, or $0.88 per diluted share, for the quarter ended September 30, 2026, as compared to $130.6 million, or $1.08 per diluted share, for the quarter ended September 30, 2025 Leasing and Occupancy

Stabilized Portfolio was 76.9% occupied and 83.0% leased at September 30, 2026, representing 610 basis points of leases signed but not yet commenced Excluding Kilroy Oyster Point Phase 2 (“KOP 2”), the Stabilized Portfolio was 80.7% occupied and 84.8% leased at September 30, 2026, representing 410 basis points of leases signed but not yet commenced During the quarter, signed approximately 815,000 square feet of leases Leasing activity was comprised of 345,000 square feet of new leasing on previously vacant space, 127,000 square feet of new leasing on currently occupied space, and 343,000 square feet of renewal leasing Renewal leasing included a 12-year, approximately 243,000 square-foot renewal at Crossing 900 with Box, Inc., a leading content management company Leasing activity during the quarter included approximately 12,000 square feet of short-term leasing GAAP and cash rents on leases signed during the quarter increased 30.6% and 9.7%, respectively, from prior levels on Second Generation leasing, excluding short-term leasing Excluding leases signed on space vacant for more than 12 months, GAAP and cash rents on leases signed during the quarter increased 37.9% and 13.9%, respectively Land Site Under Contract

In August, entered into an agreement, subject to a non-refundable deposit, to sell the land at Kilroy East Village in San Diego for $19.5 million in gross sales proceeds. The transaction is anticipated to close during the fourth quarter Balance Sheet / Liquidity

In July, repaid the outstanding $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026, at par Dividend

The Board of Directors declared and paid a regular quarterly cash dividend on its common stock of $0.54 per share, equivalent to an annual rate of $2.16 per share. The dividend was paid on October 14, 2026 to stockholders of record on September 30, 2026 (the ex-dividend date) Net Income Available to Common Stockholders / FFO Guidance

The Company is updating Nareit-defined FFO per share guidance for the full year 2026 to $3.55 to $3.59 per diluted share, from the previous range of $3.49 to $3.63. The table below reflects key assumptions for 2026 guidance.

Key Assumptions

July 2026 Assumptions

Current Assumptions

Average full year occupancy

76.50% to 78.00%

77.00% to 77.50%

Average full year occupancy excluding KOP 2

80.50% to 81.50%

80.75% to 81.25%

Same Property Cash Net Operating Income (“NOI”) growth (1)

0.25% to 1.25%

0.75% to 1.00%

NOI from Development Properties (2)

$(22.5) to $(24.0) million

+/- $(21.0) million

Non-Cash GAAP NOI adjustments (1) (3)

$13.0 to $15.0 million

$13.0 to $14.0 million

GAAP lease termination fee income

$3.0 to $4.5 million

$1.1 to $1.5 million

General and administrative and Leasing costs

$(87.5) to $(89.5) million

$(89.5) to $(90.5) million

Interest income

$2.0 to $3.0 million

+/- $3.0 million

Gross interest expense

$(208.0) to $(209.5) million

$(207.5) to $(208.5) million

Capitalized interest (4)

$48.5 to $49.5 million

$49.0 to $49.5 million

Total development spending (5)

+/- $150.0 million

+/- $150.0 million

Operating property dispositions

$347.5 to $500.0 million

$347.5 to $500.0 million

Full Year 2026 Range
as of July 2026

Full Year 2026 Range
as of October 2026

Low End

High End

Low End

High End

$ and shares/units in thousands, except per share/unit amounts

Net income available to common stockholders per share - diluted

$ 

0.08

$

0.22

$

0.23

$

0.27

Weighted average common shares outstanding - diluted (6)

118,100

118,100

117,500

117,500

Net income available to common stockholders

$ 

9,055

$

25,743

$

26,607

$

31,375

Adjustments:

Net income attributable to noncontrolling common units of the Operating Partnership

300

300

300

300

Net income attributable to noncontrolling interests in consolidated property partnerships

17,000

17,000

17,000

17,000

Depreciation and amortization of real estate assets

379,400

379,400

369,000

369,000

Gain on sale of depreciable operating property

(23,525

)

(23,525

)

(23,525

)

(23,525

)

Impairment of real estate assets

61,778

61,778

61,778

61,778

Funds From Operations attributable to noncontrolling interests in consolidated property partnerships

(28,000

)

(28,000

)

(28,000

)

(28,000

)

Funds From Operations (1)

$ 

416,008

$

432,696

$

423,160

$

427,928

Weighted average common shares/units outstanding – diluted (7)

119,200

119,200

119,200

119,200

Nareit Funds From Operations per common share/unit – diluted (1)

$ 

3.49

$

3.63

$

3.55

$

3.59

________________________

(1)

For additional information, please refer to pages 36-38 “Management Statements on Non-GAAP Supplemental Measures” of the Company’s Supplemental Financial Report furnished on Form 8-K.

(2)

NOI from Development Properties is primarily attributable to the Company’s KOP 2 project. 2026 guidance assumes the continued capitalization of the Company’s Flower Mart project through year end.

(3)

Non-Cash GAAP NOI adjustments include the following items: Deferred income and lease incentives, net, Amortization of deferred revenue related to tenant-funded tenant improvements, Straight-line rents, net, Amortization of net below market rents, Deferred settlement and restoration fee income, and Other.

(4)

2026 capitalized interest guidance assumes the continued capitalization of the Company’s Flower Mart project through year end.

(5)

Total development spending includes recently stabilized, in-process, and future development projects.

(6)

Calculated based on estimated weighted average shares outstanding, including non-participating share-based awards and the dilutive impact of contingently issuable shares.

(7)

Calculated based on the weighted average shares outstanding, including participating and non-participating share-based awards, and the dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders.

The Company’s guidance estimates for the full year 2026, and the reconciliation of Net income available to common stockholders per share - diluted and FFO per share and unit - diluted included within this press release, reflect management’s views on current and future market conditions, including assumptions with respect to rental rates, occupancy levels, and the earnings impact of the events referenced in this press release. These guidance estimates do not include the impact on the Company’s operating results from any events outside of the Company’s control, as the timing and magnitude of any such events are not known at the time the Company provides guidance. There can be no assurance that the Company’s actual results will not differ materially from these estimates.

Conference Call and Audio Webcast

The Company’s management will discuss third quarter results and the current business environment during the Company’s October 23, 2026 earnings conference call. The call will begin at 10:00 a.m. Pacific Time and last approximately one hour. To participate and obtain conference call dial-in details, register by using the following link, https://events.q4inc.com/analyst/810842787?pwd=5kxxJfrm. Those interested in listening via the Internet can access the conference call at https://events.q4inc.com/attendee/810842787. It may be necessary to download audio software to hear the conference call.

About Kilroy Realty Corporation

Kilroy is a leading U.S. landlord and developer, with operations in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin. The Company has earned global recognition for sustainability, building operations, innovation, and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the Company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, media, life science, and professional services companies.

The Company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience managing, developing, and acquiring office, life science, and mixed-use projects.

As of September 30, 2026, Kilroy’s stabilized portfolio totaled approximately 17.1 million square feet of primarily office and life science space that was 76.9% occupied and 83.0% leased. The Company also has 608 residential units in San Diego with a quarterly average occupancy of 94.8%.

A Leader in Sustainability and Commitment to Corporate Social Responsibility

Kilroy has a longstanding commitment to sustainability and continues to be a recognized leader in our sector. For over a decade, the Company and its sustainability initiatives have been recognized with numerous honors, including earning the GRESB five star rating and being named a sector and regional leader in the Americas. Other honors have included the Nareit Leader in the Light Award, being listed on the Dow Jones Sustainability World Index, being named ENERGY STAR Partner of the Year, and receiving the ENERGY STAR highest honor of Sustained Excellence.

Kilroy is proud to have achieved carbon neutral operations across our portfolio since 2020. The Company also has a longstanding commitment to maintain high levels of LEED, Fitwel, and ENERGY STAR certifications across the portfolio.

Kilroy is committed to cultivating a company culture that makes a positive difference in our employees’ lives by focusing on development, celebrating our unique backgrounds, promoting employee health and wellness, and dedicating ourselves to being a responsible corporate citizen through our community service and philanthropic efforts.

More information is available at http://www.kilroyrealty.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results, and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including actual and potential tariffs and periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California, Texas, and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the media industry, may have on our tenants’ businesses; our ability to re-lease property at or above current market rates; reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer's office premises; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service, and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment, and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices, or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed, and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement, and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations, or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition, and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; and our ability to maintain our status as a REIT. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2025, and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

KILROY REALTY CORPORATION

SUMMARY OF QUARTERLY RESULTS

(unaudited; in thousands, except per share data)

  Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Revenues

$

271,604

$

279,744

$

814,028

$

840,480

Net income available to common stockholders

$

15,506

$

156,220

$

16,144

$

263,677

Weighted average common shares outstanding – basic

116,309

118,296

116,741

118,259

Weighted average common shares outstanding – diluted

117,240

118,822

117,544

118,724

Net income available to common stockholders per share – basic

$

0.13

$

1.32

$

0.14

$

2.22

Net income available to common stockholders per share – diluted

$

0.13

$

1.31

$

0.14

$

2.21

Funds From Operations (1)(2)

$

104,633

$

130,561

$

322,817

$

388,762

Weighted average common shares/units outstanding – basic (3)

117,978

119,870

118,390

119,823

Weighted average common shares/units outstanding – diluted (4)

118,910

120,397

119,193

120,288

Funds From Operations per common share/unit – basic (2)

$

0.89

$

1.09

$

2.73

$

3.24

Funds From Operations per common share/unit – diluted (2)

$

0.88

$

1.08

$

2.71

$

3.23

Common shares outstanding at end of period

116,309

118,304

Common partnership units outstanding at end of period

1,134

1,151

Total common shares and units outstanding at end of period

117,443

119,455

September 30,
2026

September 30,
2025

Stabilized office portfolio occupancy rates: (5)

San Francisco Bay Area

75.3

%

85.7

%

Los Angeles

72.2

%

74.0

%

Seattle

79.5

%

80.6

%

San Diego

83.4

%

82.8

%

Austin

84.0

%

82.2

%

Weighted average total

76.9

%

81.0

%

Total square feet of stabilized office properties owned at end of period: (5)

San Francisco Bay Area

6,456

5,565

Los Angeles

4,246

4,568

Seattle

2,997

2,996

San Diego

2,689

2,923

Austin

759

759

Total

17,147

16,811

________________________

(1)

Reconciliation of Net income available to common stockholders to Funds From Operations available to common stockholders and unitholders and management statement on Funds From Operations are included after the Consolidated Statements of Operations.

(2)

Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders.

(3)

Calculated based on weighted average shares outstanding, including participating share-based awards (i.e., certain time-based restricted stock units) and assuming the exchange of all common limited partnership units outstanding.

(4)

Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.

(5)

Occupancy percentages and total square feet reported are based on the Company’s stabilized office portfolio for the periods presented.

  KILROY REALTY CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited; in thousands)

  September 30, 2026

December 31, 2025

ASSETS

Real Estate Assets:

Land

$

1,730,514

$

1,641,913

Buildings and improvements

9,103,217

8,505,486

Undeveloped land and construction in progress

1,627,372

2,387,742

Total real estate assets held for investment

12,461,103

12,535,141

Accumulated depreciation and amortization

(3,014,889

)

(2,843,811

)

Total real estate assets held for investment, net

9,446,214

9,691,330

Real estate and other assets held for sale, net

—

115,155

Cash and cash equivalents

94,301

179,316

Restricted cash

250

—

Marketable securities

34,025

30,807

Current receivables, net

16,818

12,765

Deferred rent receivables, net

420,433

424,794

Deferred leasing costs and acquisition-related intangible assets, net

272,405

278,232

Right of use ground lease assets, net

127,261

128,116

Prepaid expenses and other assets, net

64,065

54,561

TOTAL ASSETS

$

10,475,772

$

10,915,076

LIABILITIES AND EQUITY

Liabilities:

Secured debt, net

$

588,777

$

592,685

Unsecured debt, net

3,748,263

3,996,774

Unsecured line of credit

40,000

—

Accounts payable, accrued expenses, and other liabilities

309,288

288,963

Ground lease liabilities

126,979

127,628

Accrued dividends and distributions

63,430

65,009

Deferred revenue and acquisition-related intangible liabilities, net

112,854

125,628

Rents received in advance and tenant security deposits

82,705

75,701

Liabilities related to real estate assets held for sale

—

4,945

Total liabilities

5,072,296

5,277,333

Equity:

Stockholders’ Equity

Common stock

1,163

1,184

Additional paid-in capital

5,171,034

5,230,747

Retained earnings

10,558

188,876

Total stockholders’ equity

5,182,755

5,420,807

Noncontrolling Interests

Common units of the Operating Partnership

50,512

51,911

Consolidated property partnerships

170,209

165,025

Total noncontrolling interests

220,721

216,936

Total equity

5,403,476

5,637,743

TOTAL LIABILITIES AND EQUITY

$

10,475,772

$

10,915,076

  KILROY REALTY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share data)

  Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Revenues

Rental income

$

266,750

$

274,909

$

800,401

$

826,224

Other property income

4,854

4,835

13,627

14,256

Total revenues

271,604

279,744

814,028

840,480

Expenses

Property expenses

64,639

61,764

184,056

179,053

Real estate taxes

30,253

25,878

87,337

81,008

Ground leases

3,217

3,018

9,682

9,057

General and administrative expenses

18,408

18,247

58,040

53,623

Leasing costs

2,980

2,610

8,804

7,760

Depreciation and amortization

93,165

87,487

281,069

262,231

Total expenses

212,662

199,004

628,988

592,732

Other Income (Expenses)

Interest income

620

3,119

2,821

4,765

Interest expense

(39,376

)

(32,152

)

(119,521

)

(94,144

)

Other income

83

91

224

124

Gains on sales of depreciable operating properties

—

110,484

23,525

127,038

Impairment of real estate assets

—

—

(61,778

)

—

Total other (expenses) income

(38,673

)

81,542

(154,729

)

37,783

Net income

20,269

162,282

30,311

285,531

Net income attributable to noncontrolling common units of the Operating Partnership

(151

)

(1,524

)

(159

)

(2,562

)

Net income attributable to noncontrolling interests in consolidated property partnerships

(4,612

)

(4,538

)

(14,008

)

(19,292

)

Total net income attributable to noncontrolling interests

(4,763

)

(6,062

)

(14,167

)

(21,854

)

Net income available to common stockholders

$

15,506

$

156,220

$

16,144

$

263,677

Weighted average shares of common stock outstanding – basic

116,309

118,296

116,741

118,259

Weighted average shares of common stock outstanding – diluted

117,240

118,822

117,544

118,724

Net income available to common stockholders per share – basic

$

0.13

$

1.32

$

0.14

$

2.22

Net income available to common stockholders per share – diluted

$

0.13

$

1.31

$

0.14

$

2.21

  KILROY REALTY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited; in thousands, except per share data)

  Nine Months Ended September 30,

2026

2025

Cash flows from operating activities:

Net income

$

30,311

$

285,531

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of real estate assets and leasing costs

276,753

258,058

Depreciation of non-real estate furniture, fixtures, and equipment

4,316

4,173

Revenues deemed uncollectible

825

990

Non-cash amortization of deferred revenue related to tenant-funded tenant improvements

(9,886

)

(11,097

)

Straight-line rents, net

3,633

9,270

Non-cash amortization of net below-market rents

(1,974

)

(2,455

)

Non-cash amortization of deferred financing costs and debt discounts

6,166

3,615

Non-cash amortization of share-based compensation awards

11,177

13,945

Amortization of right of use ground lease assets

855

826

Gains on sales of depreciable operating properties

(23,525

)

(127,038

)

Impairment of real estate assets

61,778

—

Net change in other operating assets

(7,765

)

(17,660

)

Net change in other operating liabilities

32,386

39,077

Net cash provided by operating activities

385,050

457,235

Cash flows from investing activities:

Expenditures for development and redevelopment properties and undeveloped land

(164,822

)

(123,857

)

Expenditures for operating properties and other capital assets

(114,951

)

(74,507

)

Net proceeds received from dispositions of real estate assets

330,341

392,453

Investment in unconsolidated investment fund

(1,629

)

—

Expenditures for acquisitions of operating properties

—

(205,008

)

Net cash provided by (used in) investing activities

48,939

(10,919

)

Cash flows from financing activities:

Distributions to noncontrolling interests in consolidated property partnerships

(17,832

)

(26,312

)

Dividends and distributions paid to common stockholders and common unitholders

(191,355

)

(193,356

)

Taxes paid upon net share settlement of restricted share units

(6,970

)

(6,419

)

Principal payments and repayments of secured debt

(4,847

)

(4,662

)

Financing costs

(15,079

)

(4,805

)

Repurchase of common stock

(72,671

)

—

Repayments of unsecured debt

(250,000

)

(400,000

)

Borrowings on unsecured revolving credit facility

105,000

65,000

Repayments on unsecured revolving credit facility

(65,000

)

(65,000

)

Proceeds from the issuance of unsecured debt

—

395,964

Net cash used in financing activities

(518,754

)

(239,590

)

Net (decrease) increase in cash and cash equivalents and restricted cash

(84,765

)

206,726

Cash and cash equivalents, beginning of period

179,316

165,690

Cash and cash equivalents and restricted cash, end of period

$

94,551

$

372,416

  KILROY REALTY CORPORATION

FUNDS FROM OPERATIONS

(unaudited; in thousands, except per share data)

  Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net income available to common stockholders

$

15,506

$

156,220

$

16,144

$

263,677

Adjustments:

Net income attributable to noncontrolling common units of the Operating Partnership

151

1,524

159

2,562

Net income attributable to noncontrolling interests in consolidated property partnerships

4,612

4,538

14,008

19,292

Depreciation and amortization of real estate assets

91,737

86,080

276,753

258,058

Gains on sales of depreciable operating properties

—

(110,484

)

(23,525

)

(127,038

)

Impairment of real estate assets

—

—

61,778

—

Funds From Operations attributable to noncontrolling interests in consolidated property partnerships

(7,373

)

(7,317

)

(22,500

)

(27,789

)

Funds From Operations (1)(2)(3)

$

104,633

$

130,561

$

322,817

$

388,762

Weighted average common shares/units outstanding – basic (4)

117,978

119,870

118,390

119,823

Weighted average common shares/units outstanding – diluted (5)

118,910

120,397

119,193

120,288

Funds From Operations per common share/unit – basic (2)

$

0.89

$

1.09

$

2.73

$

3.24

Funds From Operations per common share/unit – diluted (2)

$

0.88

$

1.08

$

2.71

$

3.23

________________________

(1)

The Company calculates Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of Nareit. The White Paper defines FFO as net income or loss (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO. Our calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. We also add back net income attributable to noncontrolling common units of the Operating Partnership because we report FFO attributable to common stockholders and common unitholders.

Management believes that FFO is a useful supplemental measure of the Company’s operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of the Company’s activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, the Company’s FFO may not be comparable to all other REITs.

Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, management believes that FFO along with the required GAAP presentations provides a more complete measurement of the Company’s performance relative to its competitors and a more appropriate basis on which to make decisions involving operating, financing, and investing activities than the required GAAP presentations alone would provide.

FFO should not be viewed as an alternative measure of the Company’s operating performance since it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties, which are significant economic costs and could materially impact the Company’s results from operations.

(2)

Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders.

(3)

FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of $3.4 million and $3.6 million for the three months ended September 30, 2026 and 2025, respectively, and $9.9 million and $11.1 million for the nine months ended September 30, 2026 and 2025, respectively.

(4)

Calculated based on weighted average shares outstanding, including participating share-based awards (i.e., certain time-based restricted stock units) and assuming the exchange of all common limited partnership units outstanding.

(5)

Calculated based on weighted average shares outstanding, including participating and non-participating share-based awards, dilutive impact of contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.

More News From Kilroy Realty Corporation

REITs continue to demonstrate resilient fundamentals, with growing earnings and dividend payouts, making current valuations attractive for long-term income investors. Premium Class A office properties are commanding record rents in select markets, while prime retail locations continue to see strong rental growth. We discuss 2 investment-grade REITs with high-quality portfolios, offering 6% yields.

Kilroy Realty Corporation (NYSE:KRC – Get Free Report) announced a quarterly dividend on Tuesday, September 15th. Stockholders of record on Wednesday, September 30th will be paid a dividend of $0.54 per share by the real estate investment trust on Wednesday, October 14th. This represents a $2.16 annualized dividend and a dividend yield of 6.3%. The ex-dividend date is Wednesday, September 30th.

Kilroy Realty has increased its dividend payment by an average of 0.0%per year over the last three years. Kilroy Realty has a dividend payout ratio of 284.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Kilroy Realty to earn $3.30 per share next year, which means the company should continue to be able to cover its $2.16 annual dividend with an expected future payout ratio of 65.5%.

Kilroy Realty Price Performance NYSE:KRC opened at $34.27 on Monday. The business’s 50-day moving average is $36.78 and its 200 day moving average is $34.85. Kilroy Realty has a 12 month low of $27.36 and a 12 month high of $43.60. The company has a market capitalization of $3.99 billion, a P/E ratio of 24.13 and a beta of 1.11. The company has a current ratio of 2.65, a quick ratio of 2.65 and a debt-to-equity ratio of 0.83.

Kilroy Realty (NYSE:KRC – Get Free Report) last released its quarterly earnings data on Monday, July 27th. The real estate investment trust reported $0.17 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.73). The firm had revenue of $272.37 million during the quarter, compared to the consensus estimate of $267.39 million. Kilroy Realty had a return on equity of 3.04% and a net margin of 15.47%.The business’s revenue was down 6.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.13 EPS. Kilroy Realty has set its FY 2026 guidance at 3.490-3.630 EPS. On average, equities research analysts forecast that Kilroy Realty will post 3.59 earnings per share for the current fiscal year. Analyst Upgrades and Downgrades Several brokerages recently weighed in on KRC. Evercore set a $44.00 price target on shares of Kilroy Realty in a research report on Monday, September 21st. Citigroup lifted their price objective on shares of Kilroy Realty from $34.00 to $40.00 and gave the stock a “neutral” rating in a research note on Thursday, July 30th. Barclays boosted their target price on shares of Kilroy Realty from $31.00 to $38.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 21st. Weiss Ratings upgraded shares of Kilroy Realty from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 1st. Finally, Wells Fargo & Company increased their price target on shares of Kilroy Realty from $33.00 to $38.00 and gave the company an “equal weight” rating in a report on Tuesday, September 1st. Five research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $39.47.

Read Our Latest Research Report on Kilroy Realty

About Kilroy Realty (Get Free Report)

Kilroy Realty Corporation (NYSE: KRC) is a real estate investment trust that owns, develops, acquires and manages office, life science and mixed-use properties. Its portfolio is concentrated in high-demand technology and innovation markets, with properties designed to serve businesses in sectors such as technology, media, entertainment and life sciences.

The company’s operations are primarily focused on coastal markets in the western United States, including the San Francisco Bay Area, Greater Los Angeles and San Diego, as well as the Pacific Northwest.

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Shares of Kilroy Realty Corporation (NYSE:KRC – Get Free Report) have earned an average rating of “Hold” from the sixteen analysts that are presently covering the stock, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and five have assigned a buy rating to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $39.4667.

Several brokerages have commented on KRC. Weiss Ratings raised Kilroy Realty from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 1st. Needham & Company LLC reaffirmed a “buy” rating on shares of Kilroy Realty in a research note on Monday, June 8th. Wells Fargo & Company increased their target price on Kilroy Realty from $33.00 to $38.00 and gave the company an “equal weight” rating in a research report on Tuesday, September 1st. UBS Group set a $44.00 price target on shares of Kilroy Realty in a research note on Tuesday, June 16th. Finally, The Goldman Sachs Group lifted their price target on shares of Kilroy Realty from $28.00 to $31.00 and gave the company a “sell” rating in a research note on Wednesday, July 29th.

Check Out Our Latest Analysis on Kilroy Realty

Insider Activity In other news, Director Jolie Hunt sold 15,800 shares of the business’s stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $37.79, for a total transaction of $597,082.00. Following the completion of the sale, the director owned 13,892 shares of the company’s stock, valued at $524,978.68. The trade was a 53.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.83% of the stock is currently owned by company insiders. Institutional Investors Weigh In On Kilroy Realty Several large investors have recently bought and sold shares of KRC. BlackRock Inc. purchased a new position in shares of Kilroy Realty in the second quarter valued at approximately $581,003,000. Norges Bank purchased a new stake in shares of Kilroy Realty during the fourth quarter worth approximately $340,131,000. Rush Island Management LP increased its position in shares of Kilroy Realty by 84.5% during the first quarter. Rush Island Management LP now owns 4,860,742 shares of the real estate investment trust’s stock worth $137,122,000 after purchasing an additional 2,226,821 shares in the last quarter. Route One Investment Company L.P. acquired a new position in Kilroy Realty in the 2nd quarter valued at $159,181,000. Finally, PGGM Investments raised its stake in Kilroy Realty by 6.0% in the 4th quarter. PGGM Investments now owns 2,628,946 shares of the real estate investment trust’s stock valued at $98,244,000 after purchasing an additional 148,376 shares during the last quarter. 94.22% of the stock is currently owned by hedge funds and other institutional investors.

Kilroy Realty Price Performance NYSE:KRC opened at $34.62 on Tuesday. The company has a debt-to-equity ratio of 0.83, a current ratio of 2.65 and a quick ratio of 2.65. The firm has a market cap of $4.03 billion, a price-to-earnings ratio of 24.38 and a beta of 1.11. The company has a 50 day moving average price of $37.24 and a 200-day moving average price of $34.73. Kilroy Realty has a 1-year low of $27.36 and a 1-year high of $45.03.

Kilroy Realty (NYSE:KRC – Get Free Report) last announced its quarterly earnings results on Monday, July 27th. The real estate investment trust reported $0.17 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.73). Kilroy Realty had a return on equity of 3.04% and a net margin of 15.47%.The firm had revenue of $272.37 million for the quarter, compared to analysts’ expectations of $267.39 million. During the same period last year, the company posted $1.13 earnings per share. The business’s quarterly revenue was down 6.0% on a year-over-year basis. Kilroy Realty has set its FY 2026 guidance at 3.490-3.630 EPS. Equities research analysts forecast that Kilroy Realty will post 3.59 EPS for the current year.

Kilroy Realty Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be given a $0.54 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $2.16 annualized dividend and a dividend yield of 6.2%. Kilroy Realty’s dividend payout ratio (DPR) is 152.11%.

About Kilroy Realty (Get Free Report)

Kilroy Realty Corporation (NYSE: KRC) is a real estate investment trust that owns, develops, acquires and manages office, life science and mixed-use properties. Its portfolio is concentrated in high-demand technology and innovation markets, with properties designed to serve businesses in sectors such as technology, media, entertainment and life sciences.

The company’s operations are primarily focused on coastal markets in the western United States, including the San Francisco Bay Area, Greater Los Angeles and San Diego, as well as the Pacific Northwest.

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Sequoia Financial Advisors LLC lifted its holdings in Kilroy Realty Corporation (NYSE:KRC – Free Report) by 125.2% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 29,083 shares of the real estate investment trust’s stock after purchasing an additional 16,169 shares during the period. Sequoia Financial Advisors LLC’s holdings in Kilroy Realty were worth $1,090,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Bank of America Corp DE boosted its position in Kilroy Realty by 118.1% during the 1st quarter. Bank of America Corp DE now owns 1,621,580 shares of the real estate investment trust’s stock valued at $45,745,000 after acquiring an additional 877,907 shares in the last quarter. Situational Awareness LP purchased a new position in shares of Kilroy Realty in the 4th quarter valued at $49,616,000. Hsbc Holdings PLC raised its position in shares of Kilroy Realty by 29.1% in the 1st quarter. Hsbc Holdings PLC now owns 258,707 shares of the real estate investment trust’s stock worth $7,303,000 after acquiring an additional 58,337 shares in the last quarter. GSA Capital Partners LLP bought a new position in shares of Kilroy Realty in the 2nd quarter worth $1,568,000. Finally, KBC Group NV lifted its stake in shares of Kilroy Realty by 1,938.6% during the 1st quarter. KBC Group NV now owns 78,831 shares of the real estate investment trust’s stock worth $2,224,000 after purchasing an additional 74,964 shares during the last quarter. 94.22% of the stock is currently owned by institutional investors.

Insider Buying and Selling In related news, Director Jolie Hunt sold 15,800 shares of Kilroy Realty stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $37.79, for a total value of $597,082.00. Following the completion of the sale, the director directly owned 13,892 shares in the company, valued at $524,978.68. This trade represents a 53.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.83% of the stock is owned by company insiders.

Kilroy Realty Stock Down 0.2% Shares of KRC stock opened at $34.42 on Thursday. The stock’s fifty day moving average price is $37.48 and its 200 day moving average price is $34.64. Kilroy Realty Corporation has a 1-year low of $27.36 and a 1-year high of $45.03. The company has a market cap of $4.00 billion, a price-to-earnings ratio of 24.24 and a beta of 1.11. The company has a debt-to-equity ratio of 0.83, a current ratio of 2.65 and a quick ratio of 2.65. Kilroy Realty (NYSE:KRC – Get Free Report) last released its quarterly earnings results on Monday, July 27th. The real estate investment trust reported $0.17 EPS for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.73). The business had revenue of $272.37 million during the quarter, compared to analysts’ expectations of $267.39 million. Kilroy Realty had a net margin of 15.47% and a return on equity of 3.04%. The company’s quarterly revenue was down 6.0% compared to the same quarter last year. During the same quarter last year, the business posted $1.13 earnings per share. Kilroy Realty has set its FY 2026 guidance at 3.490-3.630 EPS. On average, research analysts expect that Kilroy Realty Corporation will post 3.59 earnings per share for the current fiscal year.

Kilroy Realty Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th will be given a $0.54 dividend. This represents a $2.16 annualized dividend and a dividend yield of 6.3%. The ex-dividend date of this dividend is Wednesday, September 30th. Kilroy Realty’s dividend payout ratio (DPR) is presently 152.11%.

Analyst Upgrades and Downgrades A number of brokerages recently weighed in on KRC. BMO Capital Markets raised their price objective on Kilroy Realty from $34.00 to $38.00 and gave the company a “market perform” rating in a research report on Monday, June 15th. Bank of America raised shares of Kilroy Realty from a “neutral” rating to a “buy” rating and increased their price target for the company from $42.00 to $44.00 in a research report on Tuesday, June 16th. UBS Group set a $44.00 price target on shares of Kilroy Realty in a report on Tuesday, June 16th. Mizuho lifted their price objective on shares of Kilroy Realty from $29.00 to $34.00 and gave the stock an “underperform” rating in a research report on Tuesday, July 21st. Finally, Wall Street Zen lowered shares of Kilroy Realty from a “hold” rating to a “sell” rating in a research note on Saturday, September 12th. Five analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Kilroy Realty presently has a consensus rating of “Hold” and a consensus price target of $39.47.

Get Our Latest Report on Kilroy Realty

Kilroy Realty Company Profile (Free Report)

Kilroy Realty Corporation (NYSE: KRC) is a real estate investment trust that owns, develops, acquires and manages office, life science and mixed-use properties. Its portfolio is concentrated in high-demand technology and innovation markets, with properties designed to serve businesses in sectors such as technology, media, entertainment and life sciences.

The company’s operations are primarily focused on coastal markets in the western United States, including the San Francisco Bay Area, Greater Los Angeles and San Diego, as well as the Pacific Northwest.

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Kilroy Realty Corporation (KRC) BofA NY Global Real Estate Conference 2026 September 16, 2026 3:45 PM EDT

Company Participants

Angela Aman - CEO & Director
A. Paratte - Executive VP & Chief Leasing Officer
Eliott Trencher - Executive VP, Chief Investment Officer, Interim CFO & Treasurer

Conference Call Participants

Jana Galan - BofA Securities, Research Division

Presentation

Jana Galan
BofA Securities, Research Division

So good afternoon, everyone. Welcome to Bank of America's 2026 Global Real Estate Conference. I'm Jana Galan, BofA's office REIT analyst, and we're pleased to have with us Kilroy's CEO, Angela Aman; CIO and Interim CFO, Eliott Trencher, Chief Leasing Officer, Rob Paratte; and Investor Relations and Capital Markets, [ John Perry.]

I'll turn over the mic to Angela for opening remarks, and then we can jump into Q&A.

Angela Aman
CEO & Director

Great. Sounds good. Thank you, and thank you for having us. We're happy to be with all of you today. And happy to be here to tell the story about Kilroy and what's been going on in our markets and across our portfolio over the last couple of years.

For those of you who aren't familiar with the company, we are West Coast company life science assets across the West Coast and in Austin, Texas. It's a very high-quality portfolio and about half of the portfolio is actually in the San Francisco Bay Area, which a few years ago, if we were at this conference would have been the most challenging part of the story and now has become one of the most exciting parts of the story given the momentum we're seeing in that market from sort of a wide breadth of tenants, including those tenants in the AI and tech space, but more broadly across other sectors, professional services, legal, et cetera.

LOS ANGELES--(BUSINESS WIRE)--Kilroy Realty Corporation (NYSE: KRC) (“Kilroy” or the “Company”) announced today that members of the Company's senior management will participate in a roundtable discussion at the Bank of America 2026 Global Real Estate Conference on Wednesday, September 16, 2026. The live panel discussion is scheduled to begin at approximately 3:45 p.m. Eastern Time and will conclude approximately 35 minutes later. The Company's participation in the conference will be webcast liv.

Jupiter Topco LLC acquired a new position in shares of Kilroy Realty Corporation (NYSE:KRC – Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 50,367 shares of the real estate investment trust’s stock, valued at approximately $1,889,000.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Quadrant Capital Group LLC raised its position in shares of Kilroy Realty by 2.8% in the third quarter. Quadrant Capital Group LLC now owns 10,881 shares of the real estate investment trust’s stock valued at $460,000 after purchasing an additional 295 shares during the period. Parallel Advisors LLC grew its stake in Kilroy Realty by 9.6% in the 4th quarter. Parallel Advisors LLC now owns 3,650 shares of the real estate investment trust’s stock valued at $136,000 after buying an additional 320 shares during the last quarter. NorthRock Partners LLC grew its stake in Kilroy Realty by 4.0% in the 3rd quarter. NorthRock Partners LLC now owns 11,907 shares of the real estate investment trust’s stock valued at $503,000 after buying an additional 460 shares during the last quarter. State of Michigan Retirement System grew its stake in Kilroy Realty by 1.9% in the 1st quarter. State of Michigan Retirement System now owns 26,265 shares of the real estate investment trust’s stock valued at $741,000 after buying an additional 500 shares during the last quarter. Finally, 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 period. 94.22% of the stock is currently owned by institutional investors and hedge funds.

Kilroy Realty Price Performance Shares of Kilroy Realty stock opened at $36.98 on Friday. The company has a quick ratio of 2.65, a current ratio of 2.65 and a debt-to-equity ratio of 0.83. The stock has a market capitalization of $4.30 billion, a price-to-earnings ratio of 26.04 and a beta of 1.11. Kilroy Realty Corporation has a twelve month low of $27.36 and a twelve month high of $45.03. The company has a 50-day simple moving average of $38.06 and a two-hundred day simple moving average of $34.40.

Kilroy Realty (NYSE:KRC – Get Free Report) last announced its earnings results on Monday, July 27th. The real estate investment trust reported $0.17 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.73). Kilroy Realty had a return on equity of 3.04% and a net margin of 15.47%.The business had revenue of $272.37 million for the quarter, compared to analyst estimates of $267.39 million. During the same quarter in the previous year, the company earned $1.13 EPS. The business’s revenue for the quarter was down 6.0% on a year-over-year basis. Kilroy Realty has set its FY 2026 guidance at 3.490-3.630 EPS. Analysts forecast that Kilroy Realty Corporation will post 3.59 EPS for the current year. Insider Activity at Kilroy Realty In related news, President Justin Smart sold 10,848 shares of the stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $38.71, for a total transaction of $419,926.08. Following the sale, the president owned 519,872 shares of the company’s stock, valued at $20,124,245.12. This represents a 2.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Jolie Hunt sold 15,800 shares of the stock in a transaction that occurred 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 sale, the director directly owned 13,892 shares in the company, valued at $524,978.68. This represents a 53.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.83% of the company’s stock.

Wall Street Analysts Forecast Growth Several equities research analysts have issued reports on the stock. UBS Group set a $44.00 price objective on shares of Kilroy Realty in a research report on Tuesday, June 16th. Needham & Company LLC reaffirmed a “buy” rating on shares of Kilroy Realty in a research report on Monday, June 8th. BMO Capital Markets increased their target price on Kilroy Realty from $34.00 to $38.00 and gave the stock a “market perform” rating in a research note on Monday, June 15th. Wells Fargo & Company lifted their price target on Kilroy Realty from $33.00 to $38.00 and gave the stock an “equal weight” rating in a report on Tuesday. Finally, JPMorgan Chase & Co. reduced their price target on Kilroy Realty from $40.00 to $39.00 and set a “neutral” rating for the company in a research note on Tuesday, July 21st. Five analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Kilroy Realty has an average rating of “Hold” and a consensus target price of $39.47.

Read Our Latest Research Report on Kilroy Realty

Kilroy Realty Profile (Free Report)

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.

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LOS ANGELES--(BUSINESS WIRE)--Kilroy Realty Corporation (NYSE: KRC, the “Company”) announced today that Jeffrey Kuehling will be leaving the Company, effective as of today. In connection with his departure, Eliott Trencher will assume the roles of Chief Financial Officer and Treasurer on an interim basis. The Company has initiated an executive search effort through Russell Reynolds Associates (“RRA”) to identify and appoint a new Chief Financial Officer. Mr. Trencher, who joined the Company in.

Are Dividend-Paying Office REITs Finally Staging A Comeback?Kilroy Realty NYSE: KRC reported second-quarter funds from operations of $0.92 per diluted share and said leasing conditions continued to improve across its West Coast office and life science markets, supported by stronger tenant demand, reduced high-quality space availability and expanding renewal discussions.

CEO Angela Aman said the company executed about 376,000 square feet of new and renewal leases during the quarter, bringing first-half leasing volume to roughly 944,000 square feet, more than 40% above the comparable period in 2025. For comparable leases signed in the quarter, GAAP rental rates increased 21% and cash rents increased 6.1%.

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Excluding space that had been vacant for more than 12 months, GAAP and cash re-leasing spreads were 27.3% and 15.6%, respectively. CFO Jeffrey Kuehling said it was the first quarter in nearly two years in which both GAAP and cash re-leasing spreads were positive.

Signed Pipeline Supports Future NOI Growth At June 30, Kilroy had more than 1 million square feet of signed but not yet commenced leases, representing more than $78 million of annualized base rent. The annualized base rent per square foot in that pool exceeded $75, about 30% above the company’s current portfolio-wide level, according to Aman.

Further, 86% of signed-but-not-commenced leases use triple-net structures, compared with 53% of the existing portfolio. Aman said the lease mix should provide a disproportionately positive contribution to net operating income as tenants commence occupancy.

Portfolio occupancy, including Kilroy Oyster Point Phase 2, was 77% at quarter-end, down 60 basis points sequentially. Kuehling said occupancy was affected by two previously disclosed large move-outs, which reduced occupancy by about 140 basis points. New lease commencements partly offset that impact.

The company also completed about 75,000 square feet of renewals during the quarter on space it had expected to vacate. Retention was 27.9% for the quarter and 30% year to date, including subtenants. Kuehling said the remaining 2026 expiration schedule is more granular, with no expirations above 50,000 square feet.

San Francisco Demand Broadens Aman said San Francisco, Kilroy’s largest market, recorded its fourth consecutive quarter of positive net absorption. The market’s flight-to-quality trend has reduced competitive sublease space and direct vacancy in trophy and Class A properties, while average effective rents have risen about 15% year over year.

Active tenant demand in San Francisco has surpassed 10 million square feet, a level not seen since 2019, according to Aman. Artificial intelligence-related companies account for about one-third of that demand pipeline, though the company said interest is broad-based across industries.

Chief Leasing Officer Rob Paratte said 7.5 million square feet had been leased year to date in San Francisco, while availability had declined by 4.5 million square feet. He said the decline in large, available blocks is prompting tenants to make decisions more quickly, including tenants with lease expirations still several years away.

Kilroy said it has also seen improved activity in Seattle’s South Lake Union and Denny Regrade areas, suburban San Diego, Beverly Hills, Culver City and the South Bay in Los Angeles, as well as Austin. In Los Angeles, the company signed a 51,000-square-foot lease with Universal Music Group at Santa Monica Media Center, bringing that project to 100% leased.

Life Science Activity Picks Up at Oyster Point In life sciences, Aman cited improving sector conditions, including a more than 70% year-over-year increase in the XBI, open biotech IPO and follow-on equity markets, and active merger, acquisition and licensing activity.

At Kilroy Oyster Point Phase 2, the company executed a previously announced 38,000-square-foot lease with Olema Pharmaceuticals. Paratte said touring activity in South San Francisco and the Peninsula rose from 317,000 square feet in the first quarter to more than 800,000 square feet in the second quarter.

He said Kilroy has active interest in all unleased space in its multitenant Oyster Point building. The company’s final available spec suite has multiple interested parties, while two new floors of spec labs are expected to become available in December and January. Paratte also pointed to growing demand from robotics companies, including some requirements above 100,000 square feet.

Capital Recycling and Balance Sheet Actions EVP and CIO Eliott Trencher said Kilroy sold $348 million of assets year to date, including the previously discussed $202 million Los Angeles residential sale. The company has $165 million of land sales under contract, with roughly half expected to close late in 2026 or early in 2027.

Kilroy is evaluating additional land sales and acquisition opportunities, focusing on office and life science assets in its five existing markets. Trencher said the company would remain selective, generally seeking opportunities where leasing, capital investment or future lease-roll expertise can create value.

Regarding the Flower Mart site in San Francisco, Kilroy is working with the city on a revised plan that is expected to allow more flexibility in phasing and a broader mix of uses, including residential. Aman said the company expects to complete that process later in the fourth quarter. Trencher said current rents do not yet support either office or residential development economics, and Kilroy expects to stop expense capitalization at year-end 2026.

During the quarter, Kilroy increased its revolving credit facility to $1.25 billion and extended its maturity to July 2030. It also upsized its term loan to $250 million and extended its maturity to July 2031. In July, the company repaid $200 million of private placement notes with cash on hand ahead of their October maturity.

Kilroy affirmed its full-year guidance for FFO of $3.49 to $3.63 per diluted share and same-property NOI growth of 25 to 125 basis points. Kuehling said the third quarter will face a difficult comparison with the prior year, when the company recognized $4 million in restoration fees and net real estate tax refund benefits.

About Kilroy Realty (NYSE:KRC)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Kilroy Realty Right Now?Before you consider Kilroy Realty, you'll want to hear this.

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Kilroy Realty (KRC - Free Report) came out with quarterly funds from operations (FFO) of $0.92 per share, beating the Zacks Consensus Estimate of $0.9 per share. This compares to FFO of $1.13 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of +2.22%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.87 per share when it actually produced FFO of $0.91, delivering a surprise of +4.6%.

Over the last four quarters, the company has surpassed consensus FFO estimates three times.

Kilroy Realty, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $272.37 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.6%. This compares to year-ago revenues of $289.89 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.

Kilroy Realty shares have added about 5.5% since the beginning of the year versus the S&P 500's gain of 8.3%.

What's Next for Kilroy Realty?While Kilroy Realty has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Kilroy Realty was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.88 on $270.03 million in revenues for the coming quarter and $3.58 on $1.07 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Douglas Emmett (DEI - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.

This real estate investment trust is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -2.7%. The consensus EPS estimate for the quarter has been revised 3.8% lower over the last 30 days to the current level.

Douglas Emmett's revenues are expected to be $254.25 million, up 0.7% from the year-ago quarter.

LOS ANGELES--(BUSINESS WIRE)--Kilroy Realty Corporation (NYSE: KRC) ("Kilroy" or the “Company”) announced today it will release second quarter 2026 financial results after the market closes on Monday, July 27, 2026. Kilroy will hold a conference call to discuss the results at 10:00 a.m. PT / 1:00 p.m. ET on Tuesday, July 28, 2026. To participate and obtain conference call dial-in details, register by using the following link: https://events.q4inc.com/analyst/213776497?pwd=miK0Lhqd. This call wi.

Bamco Inc. NY bought a new position in Kilroy Realty Corporation (NYSE: KRC) in the third quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 68,969 shares of the real estate investment trust's stock, valued at approximately $2,914,000. Bamco Inc. NY owned about 0.06% of

Posted by Defense World Staff on Mar 31st, 2026

Prologis (NYSE:PLD – Get Free Report) and Kilroy Realty (NYSE:KRC – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Dividends Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.3%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 7.6%. Prologis pays out 120.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kilroy Realty pays out 93.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prologis has increased its dividend for 12 consecutive years. Kilroy Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation This table compares Prologis and Kilroy Realty”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Prologis $8.79 billion 13.64 $3.33 billion $3.55 36.24 Kilroy Realty $1.11 billion 3.01 $276.12 million $2.31 12.23 Prologis has higher revenue and earnings than Kilroy Realty. Kilroy Realty is trading at a lower price-to-earnings ratio than Prologis, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings This is a breakdown of recent ratings and price targets for Prologis and Kilroy Realty, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Prologis 0 7 14 0 2.67 Kilroy Realty 2 10 2 1 2.13 Prologis presently has a consensus target price of $137.20, indicating a potential upside of 6.66%. Kilroy Realty has a consensus target price of $38.77, indicating a potential upside of 37.26%. Given Kilroy Realty’s higher possible upside, analysts clearly believe Kilroy Realty is more favorable than Prologis.

Volatility & Risk Prologis has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership 93.5% of Prologis shares are held by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are held by institutional investors. 0.5% of Prologis shares are held by company insiders. Comparatively, 2.5% of Kilroy Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability This table compares Prologis and Kilroy Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Prologis 37.86% 5.79% 3.41% Kilroy Realty 24.82% 4.91% 2.53% Summary Prologis beats Kilroy Realty on 12 of the 18 factors compared between the two stocks.

About Prologis (Get Free Report)

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.

About Kilroy Realty (Get Free Report)

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.

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LOS ANGELES--(BUSINESS WIRE)--Kilroy Realty Corporation (NYSE: KRC) (“Kilroy” or the “Company”) today announced it recently received two prestigious sustainability honors: the 2026 Leader in the Light® Award for Responsibility from Nareit, the National Association of Real Estate Investment Trusts, and the 2026 Best in Building Health Impact Award for Greatest Number of Recertified Projects of All-Time from Fitwel. Together, these recognitions reflect the Company's longstanding commitment to res.

Indexes for US equity real estate investment trusts continued to climb during the week ended April 10, in tandem with the broader stock market indexes. The Dow Jones Equity All REIT closed the recent week up 3.26%, compared to a 3.56% gain for the S&P 500 and a 3.04% increase for the Dow Jones Industrial Average. All Dow Jones US real estate property sector indexes closed the recent week in the black.

Wall Street analysts forecast that Kilroy Realty (KRC - Free Report) will report quarterly earnings of $0.87 per share in its upcoming release, pointing to a year-over-year decline of 14.7%. It is anticipated that revenues will amount to $270.11 million, exhibiting a decrease of 0.3% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has undergone an upward revision of 0.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Bearing this in mind, let's now explore the average estimates of specific Kilroy Realty metrics that are commonly monitored and projected by Wall Street analysts.

Based on the collective assessment of analysts, 'Revenues- Rental income' should arrive at $267.49 million. The estimate indicates a year-over-year change of +0.5%.

Analysts expect 'Revenues- Other property income' to come in at $4.79 million. The estimate indicates a year-over-year change of +4%.

The collective assessment of analysts points to an estimated 'Depreciation and amortization' of $90.11 million.

View all Key Company Metrics for Kilroy Realty here>>>

Shares of Kilroy Realty have demonstrated returns of +11.2% over the past month compared to the Zacks S&P 500 composite's +8.6% change. With a Zacks Rank #3 (Hold), KRC is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Kilroy Realty (KRC - Free Report) came out with quarterly funds from operations (FFO) of $0.91 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to FFO of $1.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of +4.04%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.98 per share when it actually produced FFO of $0.97, delivering a surprise of -1.02%.

Over the last four quarters, the company has surpassed consensus FFO estimates three times.

Kilroy Realty, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $270.05 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.02%. This compares to year-ago revenues of $270.84 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.

Kilroy Realty shares have lost about 14.7% since the beginning of the year versus the S&P 500's gain of 4.7%.

What's Next for Kilroy Realty?While Kilroy Realty has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Kilroy Realty was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.86 on $268.07 million in revenues for the coming quarter and $3.32 on $1.07 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, American Tower (AMT - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 28.

This wireless communications infrastructure company is expected to post quarterly earnings of $2.50 per share in its upcoming report, which represents a year-over-year change of -9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

American Tower's revenues are expected to be $2.65 billion, up 3.6% from the year-ago quarter.

Kilroy Realty Corporation (KRC) Q1 2026 Earnings Call Transcript

LOS ANGELES--(BUSINESS WIRE)--Kilroy Realty Corporation (NYSE: KRC) (“Kilroy” or the “Company”) announced today that its Board of Directors declared a regular quarterly cash dividend of $0.54 per common share payable on July 8, 2026 to stockholders of record on June 30, 2026. The dividend is equivalent to an annual rate of $2.16 per share.

About Kilroy Realty Corporation

Kilroy is a leading U.S. landlord and developer, with operations in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin. The Company has earned global recognition for sustainability, building operations, innovation, and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the Company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, media, life science, and professional services companies.

The Company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience managing, developing, and acquiring office, life science, and mixed-use projects.

As of March 31, 2026, Kilroy’s stabilized portfolio totaled approximately 17.1 million square feet of primarily office and life science space that was 77.6% occupied and 82.3% leased. The Company also has 608 residential units in San Diego, with a quarterly average occupancy of 95.0%.

A Leader in Sustainability and Commitment to Corporate Social Responsibility

Kilroy has a longstanding commitment to sustainability and continues to be a recognized leader in our sector. For over a decade, the Company and its sustainability initiatives have been recognized with numerous honors, including earning the GRESB five star rating and being named a sector and regional leader in the Americas. Other honors have included the Nareit Leader in the Light Award, being listed on the Dow Jones Sustainability World Index, being named ENERGY STAR Partner of the Year, and receiving the ENERGY STAR highest honor of Sustained Excellence.

Kilroy is proud to have achieved carbon neutral operations across our portfolio since 2020. The Company also has a longstanding commitment to maintain high levels of LEED, Fitwell, and ENERGY STAR certifications across the portfolio.

Kilroy is committed to cultivating a company culture that makes a positive difference in our employees’ lives by focusing on development, celebrating our unique backgrounds, promoting employee health and wellness, and dedicating ourselves to being a responsible corporate citizen through our community service and philanthropic efforts.

More information is available at http://www.kilroyrealty.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs, and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results, and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results, and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions, including actual and potential tariffs and periods of heightened inflation, and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California, Texas, and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding, and the impact labor disruptions or strikes, such as episodic strikes in the media industry, may have on our tenants’ businesses; our ability to re-lease property at or above current market rates; reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer's office premises; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service, and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; changes in interest rates and the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment, and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices, or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed, and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use, and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement, and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations, or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition, and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; risks associated with climate change and our sustainability strategies, and our ability to achieve our sustainability goals; and our ability to maintain our status as a REIT. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2025, and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.