Kilroy Realty (KRC) Q2 2026 earnings summary

Executive summary

• Achieved strong operational execution and capitalized on market recovery, with nearly 400,000 sq ft of new and renewal leases executed in Q2 2026 and robust re-leasing spreads on second-generation space.

• Strategic focus and financial flexibility enhanced by $202 million in residential asset sales and expanded unsecured credit facilities.

• Entered into a Fifth Amended and Restated Credit Agreement and Amended and Restated Term Loan Agreement, expanding credit facilities with major banks.

Financial highlights

• Revenues for Q2 2026 were $272.4 million, down from $289.9 million in Q2 2025; net income available to common stockholders was $19.9 million ($0.17 per diluted share), and FFO was $109.3 million ($0.92 per diluted share).

• Net operating income margin was 66.2%.

• Dividend of $0.54 per share declared and paid, annualized at $2.16 per share.

• Six-month revenues totaled $542.4 million, with net income of $0.6 million and FFO of $218.2 million.

Outlook and guidance

• Affirmed full-year 2026 Nareit-defined FFO per share guidance of $3.49 to $3.63 per diluted share.

• Average full-year occupancy expected at 76.5% to 78.0% (80.5% to 81.5% excluding KOP 2).

• Same property cash NOI growth projected at 0.25% to 1.25%.

• Total development spending revised to ~$150 million.