Kilroy Realty Corp’s stabilized portfolio expanded to 123 office and life science properties and approximately 17.1 million rentable square feet as of September 30, 2026, while occupancy was 76.9% and third-quarter Net Operating Income declined $15.6 million year over year.
Kilroy Realty Corporation reported third-quarter leasing of approximately 815,000 square feet and FFO of 88 cents per diluted share. It revised FFO guidance to $3.55 and $3.59 and expects Flower Mart capitalization to cease at the end of January, 2027.
TL;DR.Kilroy reported approximately 815,000 square feet of third-quarter leasing with strong re-leasing spreads, a 20% sequential expansion in forward pipeline square footage and a one-cent increase in the midpoint of 2026 FFO guidance. The outlook is tempered by year-over-year declines in quarterly revenue, net income and FFO, a 1.5% decline in same-property NOI, sequential occupancy pressure, higher expected refinancing costs, the DIRECTV expiration and an expected $37 million annualized impact from stopping Flower Mart capitalization.
Bullish
+The signed-but-not-commenced pipeline exceeded 1.4 million square feet and nearly $101 million of contractually obligated ABR.new
+The square footage represented by forward pipeline transactions increased 20% quarter over quarter.new
+The midpoint of full-year 2026 FFO guidance increased one penny to $3.57.new
+Leased occupancy rose 150 basis points sequentially while lease rollover through year-end 2028 declined by nearly 300 basis points.new
+Kilroy has $185 million of land sales under contract and expects transactions to begin closing late this year.new
Bearish
−Quarterly revenue, net income available to common stockholders and FFO declined from the prior-year quarter.new
−Cash same-property NOI decreased 1.5%, with lower settlement and restoration fees and real estate tax refunds contributing to a negative 170 basis point impact.new
−Portfolio occupancy, including KOP2, ended the quarter at 76.9%, down 10 basis points sequentially.new
−Refinancing approximately $395 million of late-2026 and 2027 maturities is expected to carry a higher cost, with each 100 basis points above 3.8% adding roughly $4 million of annual interest expense.new
−DIRECTV is expected to downsize significantly or vacate its remaining 484,000 square feet when its lease expires in the fourth quarter of 2027.new
−Stopping capitalization on Flower Mart in January 2027 is expected to add approximately $37 million of annualized interest expense and operating expenses and taxes.new
From the call
AI-generated from the earnings call and 8-K · may contain errors · not investment advice
154 of 391 funds reported for Sep 30 · net -520.6K sh shares · +26 new
Insider flowDistributing
Net -$625.6K over 90 days · 100% sells
Short interestFalling
11.26% of shares out · ▼ -5.8% MoM · 9.0 days cover
Volume signalNormal
Volume near normal
Institution breadthMulti-yr high
391 holders — near 3-yr high, broad support
Squeeze score77
high risk · 0–100
Fundamentals
Weak
Revenue growth−2%
Y/Y
EPS growth+31%
Y/Y
ValuationP/E 144.1
rich
Buyback$427.3M
remaining
Balance sheet$2.2B
net debt
Quant / Vol
risk profile
Moderate
Volatility30%
annualized · 1-yr
Max drawdown−36%
past year
ATR2.8%
of price · 14-day
Blended from price, momentum, positioning, fundamentals & volatility · daily-close · not investment advice. Market backdrop is context, not part of the score.
Guidance & track record
what management promised — and delivered
Latest guidance
· from the Earnings Call filed Oct 23, 2026
guidance range
Same property NOI
0.75% – 1%
between the end of Q3 and year-end 2027
ABR
$48M
fourth quarter of 2026
ABR
$14M
2027
ABR
$34M
over the next nine months
Three debt maturities
$395M
Previous outlook
earlier release· from the 8-K filed Oct 22, 2026
Still-open targets the latest release did not restate under the same label.
Nareit-defined FFO per share
· full year 2026$3.55 – $3.59
Net income available to common stockholders per share - diluted
· Full Year 2026 Range as of October 2026$0.23 – $0.27
Average full year occupancy
· 2026 guidance77% – 77.5%
Average full year occupancy excluding KOP 2
· 2026 guidance80.75% – 81.25%
NOI from Development Properties (2)
· 2026 guidance$-21M
Figures exactly as the company stated them in writing · click a metric with a to chart its history · period links open the stating document · "filing" marks figures stated in the 10-K/10-Q · YoY needs an exactly comparable prior-year period
Kilroy Realty Corp’s stabilized portfolio expanded to 123 office and life science properties and approximately 17.1 million rentable square feet as of September 30, 2026, while occupancy was 76.9% and third-quarter Net Operating Income declined $15.6 million year over year.
Dividends per share over the trailing 365 days by ex-date · buyback figures as last
reported in SEC filings ("spent" derived as authorized − remaining; when several
programs run concurrently, authorized is their combined total per the newest filing) ·
components shown separately — trailing-year buyback spend isn't tracked, so no
combined shareholder yield is derived.
