Kilroy Realty Corporation (KRC) Earnings Call Transcripts

Kilroy Realty Corporation's Latest Earnings Call - Q1 FY2026

Kilroy Realty Corporation (KRC) reported strong Q1 2026 results, with FFO of $0.91 per diluted share, reflecting a robust leasing environment and improved market fundamentals, particularly in San Francisco. Revenue and occupancy metrics showed positive trends, prompting management to raise 2026 FFO guidance by $0.21 to a range of $3.49 to $3.63. The company also highlighted significant leasing activity, with 568,000 square feet leased, more than double last year's performance, and a notable increase in contractually obligated annualized base rent from signed leases not yet commenced, now totaling nearly $78 million.

Reported metrics

Guidance from management

Kilroy expects 2026 FFO to range from $3.49 to $3.63 per diluted share, reflecting improved core portfolio performance. Cash same-property NOI growth is now anticipated to range from 25 to 125 basis points, driven by recent settlements and strengthening fundamentals.

What management said

So Tony, it's Elliot. In my prepared remarks, I mentioned that we're expecting stabilized yields in the low to mid-9% range. And we've obviously leased 60% of the building and have a good rent comp for where market rents are. So we -- if we replicate that, we'll be in really good shape.

Yes. I mean the only thing I'd add to that is to just echo some of what Elliot mentioned in his prepared remarks, which is that in addition to healthy demand that we've seen over the last couple of years, particularly from owner users looking to acquire assets. We've really seen a resurgence in institutional demand and interest across our West Coast markets. And so where there are opportunities, as Elliot just mentio...

What analysts pressed on

Analysts expressed concerns regarding the sustainability of the leasing pace and the impact of AI-driven demand on markets outside San Francisco. There were also questions about the potential for further capitalized interest on the Flower Mart project and the overall retention rates for upcoming lease expirations.

Main topics on the call

• Leasing Activity Surge — Kilroy achieved its strongest first quarter leasing results since 2017, with approximately 568,000 square feet leased, more than double the previous year's performance. Angela Aman stated, "Recent tenant behavior... poin...
• Increased Guidance — Management raised the 2026 FFO guidance by $0.21 at the midpoint, now ranging from $3.49 to $3.63 per diluted share. This adjustment reflects improved core portfolio performance and updated timing assumptions on the Flow...
• Strong Demand in San Francisco — San Francisco's market conditions tightened, with first quarter leasing exceeding 3 million square feet, marking a 10% increase over pre-pandemic averages. Angela Aman noted, "We have seen significant momentum at our ass...
• Capital Recycling Strategy — Kilroy has been active in capital recycling, selling $350 million in assets year-to-date, exceeding its original goal. The company plans to reinvest proceeds into high-caliber investments, enhancing cash flow durability ...

Read the full Kilroy Realty Corporation transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 45 Kilroy Realty Corporation earnings call transcripts on record, spanning February 4, 2020 to September 16, 2026. Based on this history, Kilroy Realty Corporation reports quarterly. The most recent call on file is dated September 16, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

KRC

Exchange

NYSE

Country

US

Sector

Real Estate

Industry

Office REITs

Calls on record

45

First call

February 4, 2020

Most recent

September 16, 2026

Reporting cadence

quarterly