Kilroy Realty Corporation (KRC) Q3 FY2026 earnings

Reported results

• Revenues of $271.6 million for Q3 2026, compared to $279.7 million for Q3 2025
• GAAP net income available to common stockholders of $15.5 million, or $0.13 per diluted share, for Q3 2026, compared to $156.2 million, or $1.31 per diluted share, for Q3 2025
• Non-GAAP Funds From Operations (FFO) of $104.6 million, or $0.88 per diluted share, for Q3 2026, compared to $130.6 million, or $1.08 per diluted share, for Q3 2025
• Stabilized Portfolio occupancy of 76.9% and leased at 83.0% at September 30, 2026; signed approximately 815,000 square feet of leases during Q3 2026, including 343,000 square feet of renewal leasing
• GAAP and cash rents on Second Generation leasing signed during Q3 2026 increased 30.6% and 9.7%, respectively, from prior levels
• Board declared and paid quarterly cash dividend of $0.54 per share, equivalent to annual rate of $2.16 per share, on October 14, 2026

Guidance

• Full year 2026 FFO per diluted share guidance updated to $3.55 to $3.59, from previous range of $3.49 to $3.63
• Average full year occupancy guidance updated to 77.00% to 77.50%, from previous 76.50% to 78.00%
• Average full year occupancy excluding KOP 2 guidance updated to 80.75% to 81.25%, from previous 80.50% to 81.50%
• Same Property Cash Net Operating Income growth guidance updated to 0.75% to 1.00%, from previous 0.25% to 1.25%
• NOI from Development Properties guidance of approximately $21.0 million (plus or minus), from previous $(22.5) to $(24.0) million
• General and administrative and Leasing costs guidance updated to $(89.5) to $(90.5) million, from previous $(87.5) to $(89.5) million
• Interest income guidance of approximately $3.0 million (plus or minus), from previous $2.0 to $3.0 million
• Gross interest expense guidance updated to $(207.5) to $(208.5) million, from previous $(208.0) to $(209.5) million

Notes

In August 2026, the company entered into agreement to sell land at Kilroy East Village in San Diego for $19.5 million in gross sales proceeds, anticipated to close during Q4 2026. In July 2026, the company repaid $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026 at par. During Q1 2026, the company recognized $61.8 million impairment charge on Columbia Square Living and Jardine residential towers; these properties sold in April 2026. Kilroy Oyster Point Phase 2 (KOP 2) stabilized during Q1 2026.

Price and volatility reaction

The stock moved +3.6% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -2.7 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-22 (8-K, Item 2.02). Read the original filing on sec.gov.