Growth Prospects | Analysts maintain a $38-$39 price target range, with potential upside from development projects and strategic land sales driving long-term value |
Market Adaptation | Delve into KRC's strategy amid evolving work patterns, focusing on high-quality assets in strategic locations to navigate industry headwinds |
Portfolio Challenges | Explore KRC's property portfolio, including concerns over KOP2 leasing and its potential impact on earnings and valuation before Q4 2025 |
Earnings Beat | Kilroy Realty surpassed Q2 2024 expectations with FFOps of $1.10 per share, leading to raised guidance despite year-over-year decline projections |
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.
Metrics to compare | KRC | Sector Sector - Average of metrics from a broad group of related Real Estate sector companies | Relationship RelationshipKRCPeersSector | |
---|---|---|---|---|
P/E Ratio | 22.4x | −1.1x | 7.8x | |
PEG Ratio | −1.21 | −0.15 | 0.01 | |
Price / Book | 0.8x | 1.2x | 0.9x | |
Price / LTM Sales | 4.0x | 4.6x | 3.9x | |
Upside (Analyst Target) | 4.7% | 5.2% | 10.3% | |
Fair Value Upside | Unlock | −0.3% | −0.6% | Unlock |