Kilroy Realty Corporation Common Stock (KRC) fair value
Real Estate · REIT - Office · NYSE · United States
$37.27+3.64%
Market cap $4.4BNext earnings 2026-10-22Updated Oct 23, 2026
Our verdict
Trades 20% below our fair value
Price
$37.27
Model fair valueConfidence: good
$46.73
Model range
$16.59 to $76.88
Fair value $46.73
Price $37.27
2 models fit Kilroy Realty Corporation Common Stock and they disagree: 0 of 2 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Silver78
Valued as a REIT (property company): Price to FFO, Dividend discount, and EV/EBITDA comparison.
ACCE opinionKilroy Realty Corporation Common Stock (KRC)
Fair value (2 models)
$46.73
ACCE price target
$35.00
Rating
Undervalued
Horizon
12 months
Fair value published on 23 Oct 2026, 12:04 CEST; previously $31.48 since 8 Sept 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 23 Oct 2026, 12:04 CEST.
Price used: $37.27 at the close on 23 Oct 2026, 22:00 CEST.
Models: Dividend discount and Price to FFO.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
20.2% below
+25.4% to fair value
ACCE score
44
out of 100
Analysts
29% buy
17 covering
P/E
26.1x
forward 111.3x
1-year return
-8.1%
Dividend yield
6.01%
Kilroy Realty Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Kilroy Realty owns and develops Class A office campuses and life-science properties concentrated in the Southern California and Seattle markets, leasing them to tenants in technology, media and life sciences. Its edge is the quality of that portfolio and the tenant base attached to it, which has historically kept occupancy and rents firmer than the broader office sector. The main test is whether leasing and development spending can bring revenue back to growth, since reported revenue is down 6.0% and return on equity is only 3.4%. The stock trades at 24.4 times trailing earnings but about 99 times forward earnings, a gap that signals earnings are expected to be depressed near term and that the multiple depends heavily on a recovery. At a 4.1 billion dollar market cap with a 24.0% operating margin and no index memberships, the name is cheap enough to warrant a look at the lease roll and development pipeline, but the score of 45 out of 100 says the case is not yet compelling.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings down sharply
Earnings fell 70.2% year over year while revenue dropped 6.0%. Net margin of 15.5% still looks positive, but the earnings trend is moving the wrong way.
high
Free cash flow negative
Free cash flow was -$121.65M against a $4.1B market cap, with debt-to-equity at 0.89. The company is spending more than it generates.
moderate
Heavy short interest
Short interest is 16.1% of shares outstanding, a high level that signals meaningful bearish positioning among sellers.
AI research notes
AI-assisted·How I use AIWritten Oct 18, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Analysts' mean price target sits 14.4% above the current share price, implying room for the stock to rise.
Revenue grew 4.4% per year on average over five years, showing a longer record of expansion than the latest quarter suggests.
The dividend yield of 6.2% pays shareholders well while they wait for the share price to recover.
Why it could disappoint
Revenue fell 6.0% year over year, and the weak West Coast office market is the main reason for the decline.
Free cash flow over the last twelve months was negative at -$122M, so the dividend is not covered by cash generated.
Return on invested capital of 2.2% is low, meaning the company earns very little on the money it has put to work.
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Valuation
INVESTOR
Where KRC's valuation models land
Price
$37.27
Model fair value
$46.73
Model range
$16.59 to $76.88
Fair value $46.73
Price $37.27
The price sits inside the model range.
Model
Fair value
Upside
Dividend discount
EV/EBITDA comparison
Price to FFO
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores