# Kilroy Realty (KRC.US)

Canonical: https://gigainvestors.com/s/KRC

Analysis as of: 2026-10-16T07:29:42.815Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $34.63 per share; close as of 2026-10-15.

Estimated value: low $4.55 per share, central $4.86 per share, high $5.27 per share. Buy at or below the central value $4.86 per share. Valuation as of 2026-10-16T07:29:42.815Z; scenarios are not confidence intervals.

Expected annual return: 3.5% at the stated quote. About 3.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.05×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.29×

- FY2018: 0.25×

- FY2019: 0.27×

- FY2020: 0.27×

- FY2021: 0.30×

- FY2022: 0.30×

- FY2023: 0.29×

- FY2024: 0.29×

- FY2025: 0.28×

- LTM to Mar 2026: 0.27×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 2.5%

- ROIC, second-lowest year: 1.9%

- Typical minus recent gross margin: 3.9 pp

- Typical gross margin (annual median): 70.9%

- Recent gross margin (lower of latest and 3-year median): 67.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 69.5%

- ROIC including acquisitions, ten-year median: -1.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.3%

- FY2017: 3.2%

- FY2018: 2.5%

- FY2019: 1.9%

- FY2020: 1.9%

- FY2021: 2.6%

- FY2022: 2.3%

- FY2023: 2.2%

- FY2024: 3.4%

- FY2025: 2.5%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: -0.50×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$785M

- Net income, five-year total: $1.6B

- Return on incremental invested capital: 1.4%

- Working capital / revenue, annual change: 3.1 pp

- Working capital / revenue, change between three-year averages: 46.5 pp

- Working capital / revenue, final three-year average: 42.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -1.36×

- FY2022: 0.10×

- FY2023: 0.14×

- FY2024: 0.32×

- FY2025: -0.20×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 3.2% vs 2.5%

- Per-share earnings: 2.59 to 1.81 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.8%

- Ordinary dilution, 5-year annual growth: 0.9%

- Market cap gain: -$2.4B

- Cumulative retained earnings: $297M

- Diluted shares, 10-year annual growth: 2.8%

- Diluted shares, 5-year annual growth: 0.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -4.4%

- Per-share value change: -$0.78

- Per-share value, starting three-year median: $2.59

- Per-share value, ending three-year median: $1.81

- Buybacks concentrated in cheaper years (correlation): 0.03

- Average buyback yield: 0.5%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $56M

- Cumulative net income, 10 years: $2.7B

- ROIC, first three-year median: 3.2%

- ROIC, last three-year median: 2.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.16

- FY2017: $1.67

- FY2018: $2.57

- FY2019: $1.88

- FY2020: $1.65

- FY2021: $5.37

- FY2022: $1.98

- FY2023: $1.81

- FY2024: $1.79

- FY2025: $2.32

### accounting: pass

- Sloan accruals: -2.7%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.05×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.8%

- FY2017: -2.7%

- FY2018: -2.0%

- FY2019: -2.1%

- FY2020: -2.7%

- FY2021: 1.1%

- FY2022: -3.3%

- FY2023: -3.4%

- FY2024: -3.0%

- FY2025: -2.7%

## Holders

- [Howard Marks](https://gigainvestors.com/oc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 55% since Mar 2022 · "Same-Property NOI Growth Guidance: Updated to range from negative 1% to negative 2%." (finance.yahoo.com, Jul 2025) · sales -0.1%

Story as of 2026-10-16T09:59:02.229Z; price observation 2026-10-15.

Price needs cash profits to grow 34.2% a year for ten years

### Sales · FY2025–2026

sales -0.1%; source https://www.sec.gov/Archives/edgar/data/1025996/000162828026007051/krc-20251231.htm; observed 2026-02-11.

- FY2017: $719M 

- FY2018: $747M 

- FY2019: $837M 

- FY2020: $898M 

- FY2021: $955M 

- FY2022: $1.1B 

- FY2023: $1.1B 

- FY2024: $1.1B 

- FY2025: $1.1B 

- FY2026: $1.1B 

### Gross margin · FY2025

gross margin 67%; source https://www.sec.gov/Archives/edgar/data/1025996/000162828026007051/krc-20251231.htm; observed 2026-02-11.

- FY2016: 73.1% 

- FY2017: 71.8% 

- FY2018: 71.8% 

- FY2019: 69.7% 

- FY2020: 71.0% 

- FY2021: 71.8% 

- FY2022: 70.7% 

- FY2023: 68.9% 

- FY2024: 67.2% 

- FY2025: 67.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are USD 1.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1025996/000162828026007051/krc-20251231.htm (filed 2026-02-11); FY2025: revenue 1112700000; grossProfit 745509000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 67% to 68.9% during 2023–25; it earns 2.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: grossProfit / revenue = 68.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: grossProfit / revenue = 67.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1025996/000162828026007051/krc-20251231.htm (filed 2026-02-11); FY2025: grossProfit / revenue = 67%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); 10-year return on capital observations [[2016,0.03342910686002698],[2017,0.031509646796294956],[2018,0.025367143229799903],[2019,0.019312398217224365],[2020,0.018743314282682076],[2021,0.02564713472369476],[2022,0.02318870328246732],[2023,0.022139324156501626],[2024,0.034318545372172216],[2025,0.024787888576077388]]; median 0.025077515902938646. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 6.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2017: growth capex 231696628.7230568; upkeep 273997371.2769432; owner earnings 136500628.7230568. Growth capex / owner earnings = 1.6974033811458928.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2022: growth capex 19655288.954373956; upkeep 566953711.045626; cash acquisitions 0; owner earnings 24044288.954373956. Growth capex plus acquisitions / owner earnings = 0.8174618509897092.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: growth capex 5147898.686788797; upkeep 538671101.3132112; cash acquisitions 0; owner earnings 29871898.686788797. Growth capex plus acquisitions / owner earnings = 0.17233249016961605.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: growth capex 910132.7621603012; upkeep 500068867.2378397; cash acquisitions 0; owner earnings 68148132.7621603. Growth capex plus acquisitions / owner earnings = 0.013355212025202522.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Dividend observations: [[2016,150694000],[2017,348106000],[2018,179411000],[2019,196252000],[2020,224578000],[2021,237355000],[2022,247556000],[2023,255430000],[2024,256306000],[2025,257861000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1025996/000162828026007051/krc-20251231.htm (filed 2026-02-11); FY2025: cash repurchases 6551000 USD.

### Are managers owners

Insiders own 0.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KRC.US SharesStats.PercentInsiders = 0.8999999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 34.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Ten-year compound average after fade. Initial solved rate 0.4916631979989946. Price 34.63; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.843431956662325 → FY2025 -0.4704371173985197. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $71.83 per share

- 2016-11: $72.34 per share

- 2016-12: $73.22 per share

- 2017-01: $74.85 per share

- 2017-02: $77.15 per share

- 2017-03: $72.08 per share

- 2017-04: $70.53 per share

- 2017-05: $73.22 per share

- 2017-06: $75.15 per share

- 2017-07: $69.41 per share

- 2017-08: $69.23 per share

- 2017-09: $71.12 per share

- 2017-10: $71.23 per share

- 2017-11: $75.38 per share

- 2017-12: $74.65 per share

- 2018-01: $71.32 per share

- 2018-02: $68.10 per share

- 2018-03: $70.96 per share

- 2018-04: $71.67 per share

- 2018-05: $76.15 per share

- 2018-06: $75.64 per share

- 2018-07: $72.95 per share

- 2018-08: $73.14 per share

- 2018-09: $71.69 per share

- 2018-10: $68.88 per share

- 2018-11: $70.09 per share

- 2018-12: $62.88 per share

- 2019-01: $70.46 per share

- 2019-02: $73.71 per share

- 2019-03: $75.96 per share

- 2019-04: $76.91 per share

- 2019-05: $73.71 per share

- 2019-06: $73.81 per share

- 2019-07: $79.46 per share

- 2019-08: $77.86 per share

- 2019-09: $77.89 per share

- 2019-10: $83.93 per share

- 2019-11: $83.24 per share

- 2019-12: $83.90 per share

- 2020-01: $82.57 per share

- 2020-02: $72.69 per share

- 2020-03: $63.70 per share

- 2020-04: $62.26 per share

- 2020-05: $57.12 per share

- 2020-06: $58.70 per share

- 2020-07: $58.27 per share

- 2020-08: $58.52 per share

- 2020-09: $51.96 per share

- 2020-10: $47.08 per share

- 2020-11: $61.16 per share

- 2020-12: $57.40 per share

- 2021-01: $56.63 per share

- 2021-02: $63.46 per share

- 2021-03: $65.63 per share

- 2021-04: $68.54 per share

- 2021-05: $70.21 per share

- 2021-06: $69.64 per share

- 2021-07: $69.27 per share

- 2021-08: $65.65 per share

- 2021-09: $66.21 per share

- 2021-10: $67.38 per share

- 2021-11: $64.53 per share

- 2021-12: $66.46 per share

- 2022-01: $64.00 per share

- 2022-02: $71.62 per share

- 2022-03: $76.42 per share

- 2022-04: $70.00 per share

- 2022-05: $60.70 per share

- 2022-06: $52.33 per share

- 2022-07: $54.18 per share

- 2022-08: $48.77 per share

- 2022-09: $42.11 per share

- 2022-10: $42.74 per share

- 2022-11: $43.22 per share

- 2022-12: $38.67 per share

- 2023-01: $41.04 per share

- 2023-02: $36.02 per share

- 2023-03: $32.40 per share

- 2023-04: $29.24 per share

- 2023-05: $27.14 per share

- 2023-06: $30.09 per share

- 2023-07: $35.70 per share

- 2023-08: $36.95 per share

- 2023-09: $31.61 per share

- 2023-10: $28.58 per share

- 2023-11: $32.98 per share

- 2023-12: $39.84 per share

- 2024-01: $35.76 per share

- 2024-02: $37.89 per share

- 2024-03: $36.43 per share

- 2024-04: $33.80 per share

- 2024-05: $33.53 per share

- 2024-06: $31.17 per share

- 2024-07: $36.97 per share

- 2024-08: $36.27 per share

- 2024-09: $38.70 per share

- 2024-10: $40.22 per share

- 2024-11: $41.53 per share

- 2024-12: $40.45 per share

- 2025-01: $39.02 per share

- 2025-02: $35.70 per share

- 2025-03: $32.76 per share

- 2025-04: $31.51 per share

- 2025-05: $32.20 per share

- 2025-06: $34.31 per share

- 2025-07: $36.86 per share

- 2025-08: $41.59 per share

- 2025-09: $42.25 per share

- 2025-10: $42.25 per share

- 2025-11: $42.89 per share

- 2025-12: $37.37 per share

- 2026-01: $34.48 per share

- 2026-02: $29.82 per share

- 2026-03: $28.21 per share

- 2026-04: $33.26 per share

- 2026-05: $34.27 per share

- 2026-06: $37.47 per share

- 2026-07: $38.82 per share

- 2026-08: $36.30 per share

- 2026-09: $33.27 per share

- 2026-10: $34.63 per share

## Annual estimated value (USD per share)

- FY2024: low $4.05 per share, central $4.82 per share, high $5.40 per share

- FY2025: low $4.07 per share, central $4.74 per share, high $5.27 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1025996/000162828026007051/krc-20251231.htm); period 2025-12-31, filed 2026-02-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Howard Marks](https://gigainvestors.com/oc): 1,850,011 KRC shares; USD 69,320,000 reported position value; 1.83% of portfolio; hold; quarter 2026 Q2.

# KRC — Kilroy Realty Corp.

Held by 1 investor · USD 69,320,000 total · 2026 Q2 · reported price USD 37.47 (split-adjusted).
Page: https://gigainvestors.com/s/KRC

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Howard Marks (https://gigainvestors.com/oc) | USD 69,320,000 | 1.8% | hold |

## Total held by quarter

- 2021 Q1: USD 59,724,022 · 1 holder · USD 65.63
- 2021 Q2: USD 71,735,746 · 2 holders · USD 69.64
- 2021 Q3: USD 101,633,078 · 1 holder · USD 66.21
- 2021 Q4: USD 102,016,831 · 1 holder · USD 66.46
- 2022 Q1: USD 117,305,541 · 1 holder · USD 76.42
- 2022 Q2: USD 84,513,526 · 1 holder · USD 52.33
- 2022 Q3: USD 68,008,113 · 1 holder · USD 42.11
- 2022 Q4: USD 71,539,925 · 1 holder · USD 38.67
- 2023 Q1: USD 59,940,356 · 1 holder · USD 32.40
- 2023 Q2: USD 55,666,831 · 1 holder · USD 30.09
- 2023 Q3: USD 58,478,848 · 1 holder · USD 31.61
- 2023 Q4: USD 73,704,438 · 1 holder · USD 39.84
- 2024 Q1: USD 67,395,901 · 1 holder · USD 36.43
- 2024 Q2: USD 57,664,843 · 1 holder · USD 31.17
- 2024 Q3: USD 71,595,426 · 1 holder · USD 38.70
- 2024 Q4: USD 74,832,945 · 1 holder · USD 40.45
- 2025 Q1: USD 60,606,360 · 1 holder · USD 32.76
- 2025 Q2: USD 63,473,877 · 1 holder · USD 34.31
- 2025 Q3: USD 78,162,965 · 1 holder · USD 42.25
- 2025 Q4: USD 69,134,911 · 1 holder · USD 37.37
- 2026 Q1: USD 52,188,810 · 1 holder · USD 28.21
- 2026 Q2: USD 69,320,000 · 1 holder · USD 37.47