Kilroy Realty (KRC) Q4 2025 earnings summary

Executive summary

• Achieved the strongest fourth-quarter leasing in six years, with 827,000 sq ft leased in Q4 2025 and 2.1 million sq ft for the full year, especially in life science and office projects across key West Coast markets.

• Completed significant capital recycling, including $755 million in dispositions and targeted acquisitions such as Nautilus in Torrey Pines and Maple Plaza in Beverly Hills, refining the portfolio and enhancing liquidity.

• Maintained carbon neutral operations for the sixth consecutive year and received multiple sustainability recognitions.

Financial highlights

• Q4 2025 FFO was $0.97 per diluted share; full-year FFO was $505.9M ($4.20/share), both down year-over-year; year-end occupancy at 81.6%.

• Q4 2025 revenues were $272.2M, down from $286.4M in Q4 2024; full-year net income available to common stockholders was $276.1M ($2.32/share), up from $211.0M ($1.77/share) year-over-year.

• Cash same-property NOI declined 7.2% in Q4, impacted by a restoration fee and lower average occupancy.

• Declared a quarterly dividend of $0.54/share, annualized at $2.16/share.

Outlook and guidance

• 2026 Nareit-defined FFO per share guidance is $3.25–$3.45 per diluted share, with average occupancy expected at 76–78% (excluding KOP2: 80–81.5%).

• Same property cash NOI growth projected flat to -1.5%; NOI from development properties expected between -$23.5 million and -$25 million.

• $325 million in operating dispositions targeted for 2026; development spending anticipated at $150M–$200M.