📊 KRC Key Takeaways
Is Kilroy Realty Corp. (KRC) a Good Investment?
KRC demonstrates strong operating cash flow generation ($566.3M FCF) and moderate leverage (0.41x debt/equity), but faces concerning operational headwinds including declining net income (-8.8% YoY) despite anomalous revenue growth, weak interest coverage (2.0x), and persistently low capital returns (ROE 5.1%, ROA 2.5%). The 7.1% operating margin combined with significant gap to 24.8% net margin suggests reliance on non-operating gains rather than core operational performance.
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.
Why Buy Kilroy Realty Corp. Stock? KRC Key Strengths
- Exceptional free cash flow generation of $566.3M with 50.9% FCF margin
- Conservative debt structure with 0.41x debt-to-equity ratio
- Diluted EPS growth of 31.1% YoY despite challenging conditions
- 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
- Critical: Interest coverage of 2.0x is dangerously low for debt sustainability, particularly in rising rate environment
- Net income declining 8.8% YoY despite 5,731.6% revenue spike signals fundamental operational deterioration, not growth
- Persistently weak capital returns (ROE 5.1%, ROA 2.5%) indicate poor asset utilization and shareholder value creation
- Low 7.1% operating margin with large gap to net margin suggests unreliable earnings quality dependent on non-operating gains
- 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—must improve above 2.5x for safety
- Operating margin sustainability—verify if 7.1% floor or further deterioration
- Net income trajectory—confirm stabilization/recovery in coming quarters
- 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 50.9% 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $2.6M | $54.0M | $0.40 |
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 |
|---|---|---|---|
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775858872.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775858866.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775857316.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775857303.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775857297.xml | View → |
❓ Frequently Asked Questions about KRC
What is the AI rating for KRC?
Kilroy Realty Corp. (KRC) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 60% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KRC's key strengths?
Claude: Exceptional free cash flow generation of $566.3M with 50.9% FCF margin. Conservative debt structure with 0.41x debt-to-equity ratio. 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: Critical: Interest coverage of 2.0x is dangerously low for debt sustainability, particularly in rising rate environment. Net income declining 8.8% YoY despite 5,731.6% revenue spike signals fundamental operational deterioration, not growth. 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 $1.1B.
Does KRC pay dividends?
Kilroy Realty Corp. pays dividends, with $257.9M 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 $2.32.
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 rating reflects both perspectives for balanced insights.
Is KRC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kilroy Realty Corp. has a HOLD rating with 60% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KRC stock overvalued or undervalued?
Valuation metrics for KRC: ROE of 5.1% (sector avg: 8%), net margin of 24.8% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy KRC stock in 2026?
Our dual AI analysis gives Kilroy Realty Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is KRC's free cash flow?
Kilroy Realty Corp.'s operating cash flow is $566.3M, with capital expenditures of N/A. FCF margin is 50.9%.
How does KRC compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 24.8% (avg: 20%), ROE 5.1% (avg: 8%), current ratio N/A (avg: 1.5).