The raised FFO guidance and strong leasing pipeline suggest improving fundamentals, but the GAAP loss and occupancy decline are headwinds. Monitor Q2 leasing commencements and KOP2 stabilization for confirmation of the guidance trajectory.
Price Chart
Executive Summary
Kilroy Realty reported Q1 2026 FFO of $0.91/share, beating the $0.87 consensus, and raised full-year 2026 FFO guidance to $3.49-$3.63 from $3.25-$3.45. However, GAAP net loss was $(19.3)M driven by a $61.8M impairment on residential towers held for sale, and FFO declined 10.8% YoY. Strong leasing (568k sq ft, best Q1 since 2017) and capital recycling ($145.5M dispositions) were offset by lower occupancy (77.6% vs. 81.4% a year ago).
Key Financial Metrics
Key Facts
- Q1 2026 FFO per diluted share $0.91 vs. $1.02 YoY (-10.8%)
- GAAP net loss per share $(0.16) vs. income $0.33 YoY, including $61.8M impairment
- Full-year 2026 FFO guidance raised to $3.49-$3.63 (prev. $3.25-$3.45)
- Stabilized portfolio occupancy declined to 77.6% (81.6% year-end 2025), but ex-KOP2 was 81.5%
- Same Property Cash NOI growth guidance turned positive: 0.25%-1.25% (prev. (1.5%)-0%)
- Repurchased 2.4M shares for $72.7M at avg. $30.80
- Completed $145.5M in dispositions and $202M in residential tower sales in April
- Signed 568k sq ft of leases, best Q1 since 2017; Cooley LLP lease for 145k sq ft
Financial Impact
FFO beat consensus by ~4.6%; guidance raise implies ~5.6% increase in midpoint
Risk Factors
- Occupancy pressure from KOP2 (only 5% occupied) could weigh on cash flow
- Higher interest expense ($38.5M vs $31.1M YoY) due to debt refinancing
- Continued leasing spreads negative (GAAP -10.6%, cash -16.8%) may pressure future NOI
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-027543 |
| Exhibit: exhibit992.htm | 0001628280-26-027543 |
| Document: krc-20260427.htm | 0001628280-26-027543 |
| Document: 0001628280-26-027543-index-headers.html | 0001628280-26-027543 |
| Document: 0001628280-26-027543-index.html | 0001628280-26-027543 |
| Document: 0001628280-26-027543.txt | 0001628280-26-027543 |
| 8-K Data (Synthetic) | 0001628280-26-027543 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 30, 2026 13w ago | Insider Cluster | $39.16 $34.05 | ▼ −13.05% | ▼ −16.01% | $33.73 (−13.87%) |
May 6, 2026 21w ago | 144 | $34.51 $38.82 | ▲ +12.51% | ▲ +10.39% | $33.73 (−2.25%) |
Apr 27, 2026 22w ago | 8-K | $34.01 $38.35 | ▲ +12.78% | ▲ +9.06% | $33.73 (−0.81%) |
Feb 28, 2026 30w ago | Institutional Cluster | $29.64 $34.47 | ▲ +16.32% | ▲ +6.99% | $33.73 (+13.82%) |
Feb 26, 2026 31w ago | 8-K | $31.93 $34.14 | ▲ +6.94% | ▼ −0.81% | $33.73 (+5.65%) |
US Market Status
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