Kilroy Realty (KRC) Q4 2025 earnings summary

Executive summary

• Achieved strongest Q4 leasing in six years with 827,000 sq ft, totaling over 2.05 million sq ft for 2025, with robust activity in life science and office projects across key West Coast markets.

• Strategic asset sales and acquisitions, including the $365M Silicon Valley campus sale, $192M Nautilus Campus, and $205.3M Maple Plaza acquisitions, refined the portfolio and enhanced liquidity.

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

Financial highlights

• Q4 2025 FFO was $117.2M ($0.97/share), down from $144.9M ($1.20/share) in Q4 2024; full-year FFO was $505.9M ($4.20/share), down from $551.6M ($4.59/share) in 2024.

• Q4 2025 revenues were $272.2M, down from $286.4M in Q4 2024; net income available to common stockholders was $12.4M ($0.10/share), down from $59.5M ($0.50/share) year-over-year.

• Full-year 2025 revenues were $1,112.7M, down from $1,135.6M in 2024; net income available to common stockholders was $276.1M ($2.32/share), up from $211.0M ($1.77/share) year-over-year.

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

• Net operating income margin for 2025 was 66.2%.

Outlook and guidance

• 2026 Nareit-defined FFO per share guidance is $3.25 to $3.45 per diluted share.

• Average full-year occupancy expected between 76.0% and 78.0%, with KOP2 impacting the lower end; excluding KOP2, guidance is 80.0% to 81.5%.

• Same property cash NOI growth projected between -1.5% and 0.0%.

• Anticipates $150M to $200M in development spending and $300M–$325M in dispositions for 2026.

• 2026 occupancy to trough in Q2 due to front-half weighted lease expirations.