Kilroy Realty Corp KRC

Morningstar Rating
$38.42 −0.17 (0.44%)
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Company Report

Kilroy Realty Needs to Lease Development Projects to Drive Growth Over Next Few Years

Kilroy Realty owns, develops, acquires, and manages premier office, life science, and mixed-use real estate properties in Los Angeles, San Diego, San Francisco, Seattle, and Austin. The firm has positioned itself to benefit from the burgeoning life sciences sector with material exposure in its current portfolio and future development pipeline. We also welcome management’s focus on ESG as it aligns its office portfolio to meet the sustainability requirements of its clients.

Price vs Fair Value

KRC is trading at a 25% premium.
Price
$38.42
Fair Value
$97.00
Uncertainty
High
1-Star Price
$87.16
5-Star Price
$26.60
Economic Moat
Qkm
Capital Allocation
Twmrkgbxt

Bulls Say, Bears Say

Bulls

Kilroy’s focus on technology and life science market clusters should benefit the firm in the long run as we expect buoyant growth in these areas. In addition to this, the company’s high-quality office buildings with good amenities should benefit from the flight to quality trend.

Bears

Employees are still hesitant in returning to the office as physical building occupancy rates remain at approximately 50%-55% of the prepandemic level. Technology-enabled hybrid workplace solutions can materially reduce per capita office space utilization, leading to lower demand for office space.

News

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Trading Information

Previous Close Price
$38.59
Day Range
$38.3339.16
52-Week Range
$27.3645.03
Bid/Ask
$33.50 / $39.83
Shares Outstanding
116.28M
Market Cap
$4.47B
Volume/Avg
2M / 2M

Key Statistics

Price/Earnings (Normalized)
31.83
Price/Sales
4.12
Dividend Yield (Trailing)
5.60%
Dividend Yield (Forward)
5.60%
Total Yield
5.77%

Company Profile

Kilroy Realty is a premier owner and landlord of approximately 16.3 million square feet of office space across Los Angeles, San Diego, the San Francisco Bay Area, Austin, Texas, and greater Seattle. The company operates as a real estate investment trust.
Sector
Real Estate
Industry
REIT - Office
Stock Style Box
Small Value
Total Number of Employees
241

Competitors

Valuation

Metric
KRC
SLG
BXP
Price/Earnings (Normalized)
31.8339.44
Price/Book Value
0.851.112.05
Price/Sales
4.123.813.03
Price/Cash Flow
8.3120.897.39
Price/Earnings
KRC
SLG
BXP

Financial Strength

Metric
KRC
SLG
BXP
Quick Ratio
1.171.131.57
Current Ratio
1.521.431.61
Interest Coverage
2.780.151.61
Quick Ratio
KRC
SLG
BXP

Profitability

Metric
KRC
SLG
BXP
Return on Assets (Normalized)
1.86%−1.57%2.07%
Return on Equity (Normalized)
3.77%−5.09%10.28%
Return on Invested Capital (Normalized)
2.94%0.14%4.11%
Return on Assets
KRC
SLG
BXP

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