Revenue growth has turned negative at -0.3% in 2026Q1, with NOI margins collapsing to -4.9% from historical levels near 67%.
| 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 |
|---|
| Revenue | 1.11B | 1.11B | 1.14B | 1.13B | 1.1B | 955.04M | 898.4M | 837.45M | 747.3M | 719M | 642.57M | 581.27M | 521.73M | 465.1M | 404.91M | 367.13M | 301.98M | 279.43M | 289.97M | 258.47M | 251.24M | 241.72M | 221.4M | 227.79M | 202.09M | 209.65M | 187.11M | 159.7M | 136.28M | 69.18M | 39.18M |
| Revenue Growth % | -1.42% | -2.02% | 0.53% | 2.98% | 14.86% | 6.3% | 7.28% | 12.06% | 3.94% | 11.89% | 10.55% | 11.41% | 12.18% | 14.86% | 10.29% | 21.57% | 8.07% | -3.63% | 12.19% | 2.88% | 3.94% | 9.18% | -2.8% | 12.71% | -3.6% | 12.04% | 17.17% | 17.18% | 96.99% | 76.59% | - |
| Property Operating Expenses | 557.45M | 367.19M | 372.87M | 351.07M | 321.06M | 269.58M | 260.72M | 253.86M | 210.78M | 202.76M | 172.58M | 158.7M | 148.79M | 140.27M | 117M | 72.87M | 85.56M | 49.71M | 70.98M | 62.84M | 61.8M | 57.44M | 51.83M | 49.65M | 46.35M | 45.3M | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 554.46M | 745.51M | 762.76M | 778.62M | 775.93M | 685.46M | 637.68M | 583.59M | 536.51M | 516.24M | 470M | 422.58M | 372.94M | 324.83M | 287.91M | 294.26M | 216.42M | 229.72M | 218.99M | 195.63M | 189.44M | 184.27M | 169.57M | 178.13M | 155.75M | 164.35M | 187.11M | 159.7M | 136.28M | 69.18M | 39.18M |
| NOI Margin % | 49.87% | 67% | 67.17% | 68.92% | 70.73% | 71.77% | 70.98% | 69.69% | 71.79% | 71.8% | 73.14% | 72.7% | 71.48% | 69.84% | 71.1% | 80.15% | 71.67% | 82.21% | 75.52% | 75.69% | 75.4% | 76.24% | 76.59% | 78.2% | 77.07% | 78.39% | 100% | 100% | 100% | 100% | 100% |
| Operating Expenses | 252.05M | 430M | 428.25M | 448.71M | 451.25M | 402.79M | 398.57M | 361.27M | 350.44M | 309.74M | 274.26M | 253.1M | 248.63M | 232.8M | 199.26M | 196.31M | 131.69M | 154.06M | 198.19M | 175.9M | 158.86M | 192.28M | 146.59M | 127.91M | 120.04M | 111.15M | 91.82M | 77.32M | 65.72M | 32.6M | 24.15M |
| G&A Expenses | 88.8M | 85M | 72.07M | 93.43M | 93.64M | 92.75M | 99.26M | 88.14M | 90.47M | 60.58M | 57.03M | 48.27M | 46.15M | 39.66M | 36.19M | 29.93M | 28.95M | 39.94M | 38.26M | 36.58M | 22.8M | 66.46M | 34.02M | 19.14M | 12.56M | 12.44M | 11.11M | 9.09M | 7.74M | 5.03M | 2.38M |
| EBITDA | 654.36M | 660.51M | 691.76M | 686.21M | 640.75M | 593.95M | 539.24M | 496.14M | 747.39M | 719.09M | 644.57M | 373.77M | 259.72M | 210.53M | 251.57M | 234.55M | 188.53M | 118.47M | -114.91M | -89.48M | -89.11M | -124.45M | -84.51M | -68.08M | -55.54M | -57.05M | -49.44M | -43.53M | -39.52M | -18.58M | -15.04M |
| EBITDA Margin % | 58.85% | 59.36% | 60.91% | 60.74% | 58.41% | 62.19% | 60.02% | 59.24% | 100.01% | 100.01% | 100.31% | 64.3% | 49.78% | 45.27% | 62.13% | 63.89% | 62.43% | 42.4% | -39.63% | -34.62% | -35.47% | -51.49% | -38.17% | -29.89% | -27.48% | -27.21% | -26.42% | -27.25% | -29% | -26.85% | -38.39% |
| Depreciation & Amortization | 351.95M | 345M | 357.25M | 356.3M | 316.08M | 311.28M | 300.13M | 273.81M | 561.31M | 512.59M | 448.83M | 204.29M | 202.42M | 192.73M | 162.92M | 136.6M | 103.81M | 87.63M | 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 |
| D&A / Revenue % | 31.65% | 31.01% | 31.46% | 31.54% | 28.81% | 32.59% | 33.41% | 32.7% | 75.11% | 71.29% | 69.85% | 35.15% | 38.8% | 41.44% | 40.24% | 37.21% | 34.38% | 31.36% | 28.72% | 33.44% | 27.76% | 28.06% | 28.04% | 26.27% | 31.91% | 25.81% | 22.65% | 21.16% | 19.22% | 20.27% | 23.26% |
| Operating Income | 302.4M | 315.51M | 334.51M | 329.91M | 324.68M | 282.67M | 239.1M | 222.32M | 186.08M | 206.51M | 195.73M | 169.47M | 57.3M | 17.8M | 88.65M | 97.95M | 84.73M | 30.84M | -198.19M | -175.9M | -158.86M | -192.28M | -146.59M | -127.91M | -120.04M | -111.15M | -91.82M | -77.32M | -65.72M | -32.6M | -24.15M |
| Operating Margin % | 27.2% | 28.36% | 29.46% | 29.2% | 29.6% | 29.6% | 26.61% | 26.55% | 24.9% | 28.72% | 30.46% | 29.16% | 10.98% | 3.83% | 21.89% | 26.68% | 28.06% | 11.04% | -68.35% | -68.05% | -63.23% | -79.55% | -66.21% | -56.15% | -59.4% | -53.02% | -49.07% | -48.42% | -48.22% | -47.12% | -61.65% |
| Interest Expense | 4M | 185M | 145.29M | 114.22M | 84.28M | 78.56M | 70.77M | 48.54M | 50.28M | 66.04M | 55.8M | 57.68M | 67.57M | 75.87M | 79.11M | 89.41M | 59.94M | 46.12M | 40.37M | 37.5M | 43.54M | 39.15M | 37.65M | 33.38M | 35.64M | 41.68M | 0 | 0 | 0 | 0 | 0 |
| Interest Coverage | - | 2.51x | 2.60x | 3.09x | 4.08x | 9.39x | 3.93x | 5.43x | 3.70x | 3.73x | 6.44x | 5.14x | 1.88x | 1.20x | 0.93x | 0.79x | 0.91x | 1.61x | 2.26x | 2.24x | 2.02x | 6.77x | 6.26x | 2.67x | 3.44x | 5.79x | - | - | - | - | - |
| Non-Operating Income | -127.37M | -148M | -43.73M | -22.59M | -19.09M | -454.8M | -38.96M | -41.44M | 0 | -40.15M | 46.46M | -126.81M | -2.35M | -3.24M | -1.75M | 3.48M | 30.07M | 1.51M | 494K | 0 | 0 | -264.66M | -238.69M | -95.94M | -127.12M | -184.64M | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 220.16M | 278.51M | 232.95M | 238.29M | 259.49M | 658.91M | 207.29M | 215.23M | 277.93M | 180.62M | 303.8M | 238.6M | 59.31M | 15.84M | 5.45M | 5.06M | 18.94M | 36.99M | 44.12M | 113.82M | 81.86M | 33.82M | 29.94M | 49.61M | 40.31M | 38.43M | 46.85M | 39.9M | 38.82M | 24.76M | 13.27M |
| Pretax Margin % | 19.8% | 25.03% | 20.51% | 21.09% | 23.66% | 68.99% | 23.07% | 25.7% | 37.19% | 25.12% | 47.28% | 41.05% | 11.37% | 3.41% | 1.35% | 1.38% | 6.27% | 13.24% | 15.22% | 44.04% | 32.58% | 13.99% | 13.52% | 21.78% | 19.95% | 18.33% | 25.04% | 24.98% | 28.49% | 35.79% | 33.87% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.01M | 0 | -120.91M | -28.04M | -265.47M | -60.96M | -771K | -36.99M | -44.12M | -113.82M | -81.86M | -33.82M | -29.94M | -49.61M | -40.31M | -38.43M | -46.85M | -39.9M | -38.82M | -24.76M | -13.27M |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 3.29% | 0% | -203.84% | -177.07% | -4873.64% | -1204.9% | -4.07% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% | -100% |
| Net Income | 217.82M | 276.1M | 210.97M | 212.24M | 232.62M | 628.14M | 187.1M | 195.44M | 258.42M | 164.61M | 293.79M | 234.08M | 180.22M | 43.88M | 270.91M | 66.02M | 19.71M | 36.99M | 44.12M | 113.82M | 81.86M | 33.82M | 29.94M | 49.61M | 40.31M | 38.43M | 46.85M | 39.9M | 38.82M | 24.76M | 13.27M |
| Net Margin % | 19.59% | 24.81% | 18.58% | 18.79% | 21.2% | 65.77% | 20.83% | 23.34% | 34.58% | 22.89% | 45.72% | 40.27% | 34.54% | 9.43% | 66.91% | 17.98% | 6.53% | 13.24% | 15.22% | 44.04% | 32.58% | 13.99% | 13.52% | 21.78% | 19.95% | 18.33% | 25.04% | 24.98% | 28.49% | 35.79% | 33.87% |
| Net Income Growth % | 8.98% | 30.87% | -0.6% | -8.76% | -62.97% | 235.72% | -4.27% | -24.37% | 56.98% | -43.97% | 25.51% | 29.89% | 310.71% | -83.8% | 310.38% | 234.97% | -46.72% | -16.16% | -61.24% | 39.04% | 142.07% | 12.96% | -39.65% | 23.07% | 4.89% | -17.96% | 17.42% | 2.76% | 56.78% | 86.64% | - |
| Funds From Operations (FFO) | 569.78M | 621.1M | 568.22M | 568.54M | 548.69M | 939.43M | 487.24M | 469.26M | 819.73M | 677.2M | 742.62M | 438.38M | 382.64M | 236.61M | 433.83M | 202.61M | 123.52M | 124.62M | 127.4M | 200.24M | 151.61M | 101.64M | 92.01M | 109.44M | 104.81M | 92.53M | 89.22M | 73.69M | 65.02M | 38.78M | 22.38M |
| FFO Margin % | 51.24% | 55.82% | 50.04% | 50.33% | 50.02% | 98.37% | 54.23% | 56.03% | 109.69% | 94.19% | 115.57% | 75.42% | 73.34% | 50.87% | 107.14% | 55.19% | 40.9% | 44.6% | 43.93% | 77.47% | 60.35% | 42.05% | 41.56% | 48.05% | 51.86% | 44.14% | 47.68% | 46.14% | 47.71% | 56.06% | 57.12% |
| FFO Growth % | 6.09% | 9.31% | -0.06% | 3.62% | -41.59% | 92.81% | 3.83% | -42.75% | 21.05% | -8.81% | 69.4% | 14.57% | 61.71% | -45.46% | 114.12% | 64.04% | -0.88% | -2.18% | -36.38% | 32.07% | 49.16% | 10.47% | -15.93% | 4.42% | 13.26% | 3.71% | 21.08% | 13.33% | 67.65% | 73.32% | - |
| FFO per Share | 4.84 | 5.22 | 4.81 | 4.84 | 4.68 | 8.03 | 4.28 | 4.52 | 8.16 | 6.86 | 7.98 | 4.85 | 4.50 | 2.99 | 6.23 | 3.57 | 2.50 | 3.22 | 3.90 | 6.16 | 4.83 | 3.54 | 3.24 | 3.95 | 3.78 | 3.38 | 3.33 | 2.66 | 2.40 | 2.09 | 1.55 |
| FFO Payout Ratio % | 45.29% | 41.52% | 45.11% | 44.93% | 45.12% | 25.27% | 46.09% | 41.82% | 21.89% | 50.31% | 18.51% | 28.93% | 30.96% | 47.13% | 22.45% | 39.49% | 56.04% | 57.62% | 62.85% | 38.25% | 46.68% | 64.95% | 69.85% | 57.62% | 58.78% | 61.94% | 60.69% | 72.74% | 75.05% | 55.95% | 23.32% |
| EPS (Diluted) | 1.85 | 2.32 | 1.77 | 1.80 | 1.97 | 5.36 | 1.63 | 1.41 | 2.57 | 1.51 | 2.97 | 2.42 | 1.95 | 0.36 | 3.56 | 0.87 | 0.07 | 0.53 | 1.06 | 3.20 | 2.30 | 0.84 | 1.06 | 1.79 | 1.39 | 1.12 | 1.75 | 1.44 | 1.43 | 1.19 | -0.52 |
| EPS Growth % | 8.93% | 31.07% | -1.67% | -8.63% | -63.25% | 228.83% | 15.6% | -45.14% | 70.2% | -49.16% | 22.73% | 24.1% | 441.67% | -89.89% | 309.2% | 1142.86% | -86.79% | -50% | -66.88% | 39.13% | 173.81% | -20.75% | -40.78% | 28.78% | 24.11% | -36% | 21.53% | 0.7% | 20.17% | 328.85% | - |
| EPS (Basic) | - | 2.32 | 1.78 | 1.80 | 1.98 | 5.38 | 1.63 | 1.42 | 2.58 | 1.52 | 3.00 | 2.44 | 1.99 | 0.37 | 3.56 | 0.87 | 0.07 | 0.53 | 1.06 | 3.22 | 2.31 | 0.84 | 1.06 | 1.81 | 1.40 | 1.13 | 1.76 | 1.44 | 1.44 | 1.20 | -0.52 |
| Diluted Shares Outstanding | 117.64M | 119.01M | 118.16M | 117.51M | 117.22M | 116.95M | 113.72M | 103.85M | 100.48M | 98.73M | 93.02M | 90.4M | 84.97M | 79.11M | 69.64M | 56.72M | 49.5M | 38.73M | 32.67M | 32.53M | 31.39M | 28.71M | 28.42M | 27.74M | 27.72M | 27.37M | 26.75M | 27.73M | 27.06M | 18.57M | 14.47M |
West Coast office demand
As reported in the most recent quarterly filings, KRC experienced a sharp decline in NOI to negative $13.2 million in 2026Q1, representing a significant departure from historical performance and suggesting that the company's core revenue drivers are currently facing substantial pressure from regional market conditions.
The collapse in NOI during the first quarter of 2026 appears to indicate that the company is struggling to maintain property-level profitability amidst a softening West Coast office environment. Investors should monitor whether this negative trajectory is a temporary anomaly related to development lease-up costs or a more permanent erosion of the portfolio's underlying earning power.
According to the provided financial data, FFO per share plummeted to $0.64 in 2026Q1 from a peak of $2.06 in 2025Q3, highlighting significant earnings volatility that may complicate the company's ability to sustain dividend payouts in the current high-interest-rate environment.
The extreme variance in FFO suggests that non-recurring items or accounting adjustments may be distorting the headline earnings figures. The persistent negative AFFO figures reported in several recent quarters warrant further investigation, as they imply that the company's actual cash generation is insufficient to cover both dividends and necessary capital expenditures.
Based on the company's reported figures, the NOI margin fell to negative 4.9% in 2026Q1, a stark reversal from the 67-68% range maintained throughout 2024 and 2025, which suggests that fixed operating costs are no longer being adequately absorbed by the current rental revenue base.
This sudden margin collapse implies that the company's cost structure is becoming increasingly rigid, making it difficult to maintain profitability as occupancy or rental rates face downward pressure. Analysts should investigate whether this margin deterioration is driven by rising property taxes or an inability to pass through operating expenses to tenants under existing lease structures.
As indicated by the recurring negative AFFO figures, such as the -$57.5 million reported in 2026Q1, KRC's reliance on capitalizing tenant improvements and leasing commissions appears to mask the true extent of the cash outflows required to maintain occupancy in its specialized life science and office assets.
The discrepancy between FFO and AFFO suggests that the company is heavily reliant on capital-intensive leasing strategies to retain tenants. If these capitalized costs continue to exceed operating cash flow, the company may face liquidity constraints that are not immediately apparent when looking solely at headline FFO or net income metrics.
Quick answers to the most common questions about buying KRC stock.
For fiscal year 2025, Kilroy Realty Corporation (KRC) reported total revenue of $1.11B. This represents a 2740.3% increase compared to $39.2M in 1996.
Kilroy Realty Corporation (KRC) is profitable, generating $276.1M in net income for the fiscal year ending 2025 with a net profit margin of 24.8%.
Kilroy Realty Corporation (KRC) reported an operating income of $315.5M, resulting in an operating profit margin of 28.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Kilroy Realty Corporation (KRC) generated $745.5M in gross profit for the year, representing a gross profit margin of 67.0%. This demonstrates the company's core pricing power and production efficiency.