Kilroy Realty Corporation (KRC) SEC Filings & Earnings Calls

Occupancy Decline

“Total occupancy decreased to 76.9% as of September 30, 2026 from 81.6% as of December 31, 2025.”

Life Science Development Risk

“The project is 7% occupied and 49% leased.” · word for word

Interest Expense Increase

“Interest expense increased $7.2 million, or 22.5%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025.”

Net income and FFO declined significantly YoY due to higher depreciation, impairment charges, and lower NOI from development properties.

“Net income down 90% YoY; FFO down 19.9% YoY; impairment of real estate assets $61.8M.”

CFO departure creates temporary leadership gap; external search underway.

“Jeffrey Kuehling... will be leaving the Company... The Company is conducting an external search for a permanent principal financial officer.” · word for word

Occupancy Decline

“Total stabilized portfolio occupancy declined from 81.6% at Dec 2025 to 77.0% at Jun 2026.”

San Francisco Market Concentration

“San Francisco Bay Area occupancy declined from 86.2% at Dec 2025 to 75.3% at Jun 2026.”

Negative Leasing Spreads

“Changes in Cash Rents for All Leases Signed year to date was (7.6)%.”

Low Tenant Retention

“Retention Rate for year to date was 24.8%.”

Development Project Leasing Risk

“The project is 7% occupied and 49% leased.” · word for word

Occupancy remains low at 77%, though improving.

“Stabilized Portfolio 77.0% occupied.”

Net income and FFO declined significantly YoY due to lower NOI and higher interest expense.

“Net income down 71%, FFO down 19%.”

High lease backlog (450 bps) may delay revenue recognition.

“450 basis points of leases signed but not yet commenced.” · word for word

Increased debt capacity with financial covenants; potential for higher leverage if drawn.

“Maximum total debt to total asset value ratio of 60%; secured debt ratio of 40%.”

Potential shareholder dilution from increased equity awards.

“Additional 1,700,000 shares authorized under the plan.”

Office occupancy decline

“Total 123 17,124,393 77.6 % 121 16,292,164 81.6 %” · word for word

Life science oversupply

“The project is 5% occupied and 44% leased.” · word for word

Impairment risk

“Impairment of real estate assets 61,778 — 61,778 100.0 %” · word for word

Net loss available to common stockholders of $(19.3)M vs income of $39.0M in prior year; driven by impairment or non-cash items.

“Net loss available to common stockholders of $(19.3) million ... as compared to Net income available to common stockholders of $39.0 million” · word for word

GAAP and cash rents on new leases decreased (10.6)% and (16.8)% respectively from prior levels on second generation leasing.

“GAAP and cash rents on leases signed during the quarter decreased (10.6)% and (16.8)%, respectively, from prior levels on Second Generation leasing” · word for word

Office Demand Slowdown from Remote Work

“reduced demand for office space, including as a result of remote working and flexible working arrangements that allow work from remote locations other than an employer’s office premises” · word for word

Interest Rate Sensitivity

“increases in interest rates and our ability to manage interest rate exposure” · word for word

Tenant Credit Risk

“defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses, including bankruptcy, lack of liquidity or lack of funding” · word for word

Real Estate Valuation Decline

“a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices, or obtain or maintain debt financing, and which may result in write-offs or impairment charges” · word for word

Board transition may signal governance changes but no immediate risk.

Office demand weakness

“Same Property NOI declined 3.0% YoY, driven by lower rental income and lease expirations”

Development execution risk

“Kilroy Oyster Point Phase 2 is only 44% leased with $1.2B total investment”

Interest rate exposure

“4.3% of debt is variable-rate; weighted average interest rate increased to 4.3% from 4.2%”

Negative leasing spreads on second generation leases due to tenant bankruptcy and income preservation; excluding two leases, GAAP rents would have increased but cash rents still negative.

“GAAP and cash rents on leases signed during the quarter decreased 16.8% and 27.1%, respectively, from prior levels on Second Generation leasing, excluding short-term leasing. Leasing spreads during the quarter were negatively impacted by: A new lease signed on a space recently vacated due to a tenant bankruptcy; A renewal signed to preserve near-term income ” · word for word

Revenue and FFO declined year-over-year due to dispositions and higher interest costs; net income significantly lower due to gains in prior year.

“Revenues of $272.2 million for the quarter ended December 31, 2025, as compared to $286.4 million for the quarter ended December 31, 2024. FFO of $117.2 million, or $0.97 per diluted share, for the quarter ended December 31, 2025, as compared to $144.9 million, or $1.20 per diluted share, for the quarter ended December 31, 2024.” · word for word

KOP2 project still only 3% occupied despite 44% leased; occupancy commencement lag could delay cash flow.

“The project is now 3% occupied and 44% leased. The University of California, San Francisco executed a full-building lease spanning approximately 280,000 square feet and is expected to commence occupancy in the fourth quarter of 2027.” · word for word

Office Demand Weakness

“Net Operating Income decreased $8.5 million, or 1.6%, attributable to the Same Property portfolio... A decrease in total operating revenues of $15.5 million, or 1.9%”

Sublease Overhang

“Of our occupied space as of September 30, 2025, approximately 1.8 million rentable square feet, or 10.5% of the square footage in our stabilized portfolio, was available for sublease” · word for word

Cash rent decline on second-generation leasing may pressure future cash flows.

“Cash rents decreased 9.6% from prior levels on Second Generation leasing.” · word for word

Occupancy still below pre-pandemic levels; 81% occupied indicates ongoing office market headwinds.

“Stabilized Portfolio was 81.0% occupied.” · word for word