Capital intensity remains elevated with $132.6 million in quarterly CapEx, contributing to a deeply negative AFFO of -$57.5 million that leaves dividend payments uncovered.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 580.09M | 566.31M | 541.15M | 602.59M | 592.24M | 516.4M | 455.59M | 386.52M | 410.04M | 347.01M | 345.05M | 272.01M | 245.25M | 240.58M | 180.72M | 138.26M | 119.83M | 124.97M | 144.48M | 147.5M | 61.57M | 116M | 108.04M | 95.95M | 95.55M | 106.08M | 74.01M | 84.64M | 73.43M | 28.93M | 5.52M |
| Operating CF Growth % | 73.03% | 4.65% | -10.2% | 1.75% | 14.68% | 13.35% | 17.87% | -5.74% | 18.16% | 0.57% | 26.85% | 10.91% | 1.94% | 33.12% | 30.72% | 15.38% | -4.11% | -13.51% | -2.05% | 139.56% | -46.92% | 7.37% | 12.61% | 0.41% | -9.92% | 43.34% | -12.56% | 15.26% | 153.83% | 424.06% | - |
| Operating CF / Revenue % | 52.17% | 50.9% | 47.65% | 53.34% | 53.99% | 54.07% | 50.71% | 46.15% | 54.87% | 48.26% | 53.7% | 46.8% | 47.01% | 51.73% | 44.63% | 37.66% | 39.68% | 44.72% | 49.83% | 57.07% | 24.51% | 47.99% | 48.8% | 42.12% | 47.28% | 50.6% | 39.55% | 53% | 53.88% | 41.81% | 14.09% |
| Net Income | 217.82M | 276.12M | 232.95M | 238.29M | 259.49M | 658.91M | 207.29M | 215.23M | 277.93M | 180.62M | 303.8M | 238.6M | 61.89M | 32.31M | 17.86M | 67.49M | 19.89M | 38.02M | 44.12M | 113.82M | 81.86M | 33.82M | 29.94M | 49.61M | 40.31M | 38.43M | 46.85M | 39.9M | 38.82M | 21.56M | -6.83M |
| Depreciation & Amortization | 89.08M | 349.27M | 357.25M | 356.3M | 358.38M | 311.28M | 300.13M | 273.81M | 254.28M | 245.89M | 217.23M | 204.29M | 204.48M | 201.49M | 169.9M | 136.6M | 103.81M | 87.65M | 83.28M | 86.42M | 69.75M | 67.83M | 62.07M | 59.83M | 64.5M | 54.1M | 42.38M | 33.79M | 26.2M | 14.02M | 9.11M |
| Stock-Based Compensation | 6.38M | 19.09M | 17.71M | 36.86M | 28.35M | 33.8M | 30.25M | 27.01M | -9.75M | -8.53M | -7.17M | -8.45M | -8.33M | -7.78M | -6.7M | 4.48M | 6.03M | 12.25M | 15.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 67.95M | -77.37M | -14.64M | -28.34M | -89.82M | -524.51M | -106.56M | -139.23M | -44.32M | -46.8M | -40.15M | -55.87M | -38.45M | -29.98M | -23.98M | -21.96M | 543K | -9.55M | 2.18M | -70.33M | -15.75M | -22.18M | 3.76M | 8.95M | 5.72M | 8.63M | 11.21M | 4.17M | 9.77M | 4.26M | 1.27M |
| Working Capital Changes | 41.22M | -798K | -52.13M | -521K | 35.84M | 36.92M | 24.48M | 9.7M | 40.41M | -11.84M | 14.28M | 4.41M | 17M | 35.52M | 16.02M | -2.65M | -17.17M | -6.18M | -276K | 17.59M | -74.29M | 36.54M | 12.28M | -22.45M | -14.97M | 4.91M | -26.43M | 6.78M | -1.36M | -10.91M | 1.97M |
| Cash from Investing | -148.32M | -240.03M | -225.04M | -800.4M | -553.19M | -747.88M | -542.13M | -1.23B | -808.91M | -359.1M | -635.43M | -262.75M | -501.44M | -506.52M | -706.51M | -634.28M | -701.77M | -50.47M | -93.83M | -244.8M | -136.19M | -75.68M | -129.19M | -50.84M | -63.73M | -73.41M | -117.73M | -192.79M | -343.72M | -551.96M | -2.35M |
| Acquisitions (Net) | 356.35M | 0 | 0 | 0 | 33.42M | 1.05B | 73.94M | 124.42M | 364.3M | 182.49M | 325.03M | 319.64M | 427.54M | 21.18M | 263.57M | 0 | 0 | 0 | 0 | 386.91M | 0 | 0 | 0 | 0 | -9.76M | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | -500.98M | -256.58M | 0 | 0 | 0 | 0 | -1.22B | -505.69M | -962.37M | -581.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -52K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 447.94M | 275.94M | 0 | 0 | 0 | 0 | 0 | 379.4M | 182.49M | 325.03M | 316.64M | 0 | 0 | 0 | 0 | 0 | 0 | 259K | 259K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 110.86M | 0 | 500.98M | 0 | 0 | 0 | 0 | 0 | 51.1M | -35.9M | -70.21M | 64.21M | -27.39M | 227.77M | -11.61M | 60.27M | 28.78M | 3.69M | 670K | -245.01M | 151M | 133.75M | 100.57M | 34.08M | 61.64M | 65.95M | 64.56M | 250.01M | 337.71M | 541.59M | 2.4M |
| Cash from Financing | -385.58M | -312.66M | -660.58M | 360.6M | -118.75M | -164.57M | 833.32M | 747.07M | 503.11M | -171.24M | 427.29M | 23.47M | 244.59M | 284.62M | 537.71M | 485.96M | 586.9M | -74.16M | -52.84M | 97.09M | 82.69M | -41.29M | 16.1M | -50.99M | -32.53M | -33.79M | 35.21M | 127.83M | 267.8M | 531.96M | -3.17M |
| Dividends Paid | -258.03M | -257.86M | -256.31M | -255.43M | -247.56M | -237.35M | -224.58M | -196.25M | -179.41M | -348.11M | -150.69M | -140.09M | -131.71M | -124.77M | -111.55M | -95.2M | -84.42M | -87M | -95.27M | -91.78M | -85.96M | -80.83M | -67.36M | -63.06M | -61.61M | -57.32M | -54.15M | -53.6M | -48.84M | -21.7M | -5.22M |
| Common Dividends | -258.03M | -257.86M | -256.31M | -255.43M | -247.56M | -237.35M | -224.58M | -196.25M | -179.41M | -340.7M | -137.44M | -126.84M | -118.46M | -111.52M | -97.39M | -80M | -69.22M | -71.8M | -80.07M | -76.59M | -70.77M | -66.02M | -64.27M | -63.06M | -61.61M | -57.32M | -54.15M | -53.6M | -48.8M | -21.7M | -5.22M |
| Debt Issuance (Net) | -4M | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -989K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | -80.05M | -6.55M | -27.64M | -11.6M | -22.93M | -21.89M | -14.08M | -14.56M | -16.55M | -212.99M | -8.88M | -7.08M | -3.53M | -2.52M | -1.66M | -1.15M | -3.42M | -2.73M | -14.8M | -2.63M | -2.89M | -1.76M | -46.27M | -1.71M | -11.4M | 0 | -41.27M | -5.4M | 0 | -22K | 0 |
| Other Financing | -37.15M | -33.16M | -42.43M | -41.02M | -42.7M | -37.69M | -21.84M | -18.93M | -9.75M | 38.74M | 459.88M | 10.23M | 13.42M | -4.26M | 129K | -5.81M | -15.43M | -21.45M | -836K | -29.02M | -2.19M | -523K | -14.24M | -2.12M | -11.22M | 27.6M | -31.05M | -48.87M | -4.2M | -3.5M | 18K |
| Net Change in Cash | 46.19M | 13.63M | -344.47M | 162.78M | -79.7M | -396.05M | 746.79M | -94.69M | 104.24M | -183.33M | 136.91M | 32.73M | -11.6M | 18.68M | 11.92M | -10.06M | 4.96M | 330K | -2.18M | -216K | 8.07M | -972K | -5.04M | -5.88M | -710K | -1.11M | -8.52M | 19.67M | -2.49M | 8.93M | 0 |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 179.32M | 165.69M | 510.16M | 347.38M | 427.08M | 823.13M | 76.34M | 171.03M | 66.8M | 250.13M | 56.51M | 23.78M | 35.38M | 16.7M | 4.78M | 14.84M | 9.88M | 9.55M | 11.73M | 11.95M | 3.88M | 4.85M | 9.89M | 15.78M | 16.49M | 17.6M | 26.12M | 6.44M | 8.93M | 0 | 0 |
| Cash at End | 192.9M | 179.32M | 165.69M | 510.16M | 347.38M | 427.08M | 823.13M | 76.34M | 171.03M | 66.8M | 193.42M | 56.51M | 23.78M | 35.38M | 16.7M | 4.78M | 14.84M | 9.88M | 9.55M | 11.73M | 11.95M | 3.88M | 4.85M | 9.89M | 15.78M | 16.49M | 17.6M | 26.12M | 6.44M | 8.93M | 0 |
| Free Cash Flow | -35.44M | -121.65M | 40.17M | 58.77M | 5.63M | -1.28B | -160.47M | -966.18M | -814.27M | -158.68M | -545.2M | -374.59M | -656.34M | -514.89M | -777.75M | -556.3M | -610.72M | 70.8M | 49.73M | -239.41M | -225.62M | -93.43M | -121.71M | 11.03M | -20.06M | -33.27M | -108.28M | -358.17M | -608M | -1.06B | 766K |
| FCF Growth % | -204.13% | -402.84% | -31.65% | 944.61% | 100.44% | -698.51% | 83.39% | -18.66% | -413.15% | 70.89% | -45.55% | 42.93% | -27.47% | 33.8% | -39.81% | 8.91% | -962.6% | 42.38% | 120.77% | -6.11% | -141.48% | 23.23% | -1203.34% | 155% | 39.72% | 69.27% | 69.77% | 41.09% | 42.89% | -139083.55% | - |
| FCF / Revenue % | -3.19% | -10.93% | 3.54% | 5.2% | 0.51% | -134.17% | -17.86% | -115.37% | -108.96% | -22.07% | -84.85% | -64.44% | -125.8% | -110.71% | -192.08% | -151.53% | -202.24% | 25.34% | 17.15% | -92.63% | -89.8% | -38.65% | -54.97% | 4.84% | -9.92% | -15.87% | -57.87% | -224.28% | -446.12% | -1538.86% | 1.96% |
West Coast office demand
According to the company's reported financial statements, KRC's AFFO has turned deeply negative, reaching -$57.5 million in 2026Q1, which renders the $64.5 million dividend payment entirely uncovered by recurring cash flow and necessitates reliance on external financing or balance sheet liquidity to maintain current distributions.
The consistent failure of AFFO to cover dividend obligations suggests that the current payout policy is unsustainable without a significant recovery in core property performance. Investors should monitor whether management chooses to prioritize dividend preservation over necessary capital reinvestment, as the current cash burn trajectory appears to be accelerating.
As indicated by the provided data, KRC incurred $132.6 million in capital expenditures during 2026Q1 alone, a figure that consistently dwarfs the company's ability to generate positive free cash flow and highlights the heavy burden of maintaining high-specification life science and office assets in a competitive market.
The high level of recurring capital expenditure, including tenant improvements and leasing commissions, appears to be a structural necessity to retain tenants in the current environment. This persistent outflow suggests that the company's assets require significant ongoing investment, which may continue to suppress net cash availability for the foreseeable future.
Based on the divergence between GAAP Net Income of -$19.3 million and FFO of $75.1 million in 2026Q1, it appears that significant non-cash depreciation charges are obscuring the underlying operational challenges facing the portfolio's ability to generate meaningful cash returns for shareholders.
While FFO is intended to normalize for these non-cash items, the gap between FFO and the even lower AFFO metric suggests that the accounting adjustments do not fully capture the cash-intensive nature of the business. This discrepancy warrants further investigation into whether the company's depreciation schedules accurately reflect the economic obsolescence of its older office assets.
As reported in recent filings, the consistent capitalization of maintenance and leasing costs appears to artificially inflate the company's reported earnings, masking the true extent of the cash burn that is currently impacting the REIT's overall financial health and long-term liquidity position.
By shifting significant maintenance and leasing expenses from the income statement to the balance sheet, the company may be presenting a more favorable earnings profile than the actual cash flow statement supports. Investors should be wary of this accounting treatment, as it may hide the true cost of maintaining occupancy in a softening West Coast office market.
Quick answers to the most common questions about buying KRC stock.
Kilroy Realty Corporation (KRC) generated $566.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Kilroy Realty Corporation (KRC) reported negative free cash flow of $121.7M in 2025, indicating capital requirements exceeded cash from operations.
Kilroy Realty Corporation (KRC) spent $688.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Kilroy Realty Corporation (KRC) returned $257.9M to shareholders via cash dividends and spent $6.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.