Kilroy Realty (KRC) Q3 2026 earnings summary

Executive summary

• Q3 leasing reached ~815,000 sq. ft., among the highest quarterly volumes since 2019; leased occupancy rose sequentially across all five regions, and signed-not-commenced leases totaled 1.4 million sq. ft. and $101 million ABR.

• Q3 FFO was $0.88 per diluted share; FY2026 guidance midpoint increased $0.01 to $3.57, within a narrowed range of $3.55–$3.59.

• Stabilized portfolio occupancy was 76.9% and leased occupancy 83.0%; excluding KOP 2, the figures were 80.7% and 84.8%.

Financial highlights

• Q3 revenue was $271.6M versus $279.7M YoY; net income available to common stockholders was $15.5M, or $0.13 diluted EPS, versus $156.2M, or $1.31.

• Q3 FFO was $104.6M, or $0.88 per diluted share, versus $130.6M, or $1.08; 9M FFO was $322.8M versus $388.8M.

• Q3 portfolio NOI was $173.2M, down 8.3% YoY; same-property cash NOI was $170.6M, down 1.5%.

• Lower settlement and restoration fees and real estate tax refunds versus the prior period reduced same-property cash NOI growth by 170 bps.

Outlook and guidance

• FY2026 Nareit FFO guidance narrowed to $3.55–$3.59 per diluted share, midpoint $3.57, from $3.49–$3.63; Q4 midpoint implies $0.86 per share.

• FY2026 assumptions include average occupancy of 77.00%–77.50%, or 80.75%–81.25% excluding KOP 2, and same-property cash NOI growth of 0.75%–1.00%.

• Guidance reflects higher same-property and development NOI and lower net interest expense, offset by lower anticipated lease termination fees, higher G&A and lower non-cash adjustments.

• SNO leases totaling $48M ABR are expected to commence from Q3-end through 2027: $14M in Q4 2026 and $34M during 2027.

• Development spending is expected to be $25M–$75M during the remainder of 2026; 1900 Broadway is 58% pre-leased, with construction anticipated in 2027 and delivery in 2030.