Kilroy Realty Corporation Common Stock (KRC)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor who prefers a clear discount to intrinsic value. Kilroy Realty is an office landlord in tech-heavy coastal markets. The business quality is mixed: it owns desirable properties and has a sustainability reputation, but office real estate is cyclical and structurally challenged by remote work. In fiscal Q1 2026, the quarter ended 2026-03-31, the company reported revenue of $4.7M and a net loss of $14.7M, or -$0.16 per diluted share. That follows filed fiscal year 2025 revenue of $19.1M and net income of $302.6M; fiscal year 2024 revenue was $17.5M and net income $233.0M. The revenue trend is modest, but the latest quarter turned negative. FairStock's calculations show a price of $34.93 at close on 2026-10-13, P/B of 0.78, dividend yield of 6.31%, D/E of 0.86, Piotroski F-Score 6/9, and Altman Z-Score 0.55. The low P/B and Lynch asset-play label tempt me, but negative trailing free cash flow of -$163.8M and FCF yield of -4.0% are red flags. The 6.31% dividend yield may not be safely covered if cash flow remains negative. FFO/AFFO, the proper REIT earnings measures, are not in the data, so I must lean on price-to-book, leverage, revenue trend, and dividend yield. With ROE of 3.43% and ROCE of 1.57%, the assets are not earning much. A 0.78x book value could be a bargain if properties are marked correctly, but office book values may be stale. I would want to see stable FFO, lower leverage, and positive cash flow before calling this a true value opportunity.

In plain English: Kilroy Realty owns and develops office buildings in cities like San Francisco, Los Angeles, Seattle, San Diego, and Austin. The latest reported quarter showed a loss, and the company is not currently generating positive cash flow while carrying a fair amount of debt. The stock sells for less than the value of its assets on the books, which can look cheap, but office buildings remain a tough business.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer