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    A Look At Kilroy Realty’s Valuation As 2025 Results And 2026 Guidance Spark Rebound Hopes

    Simply Wall St·02/19/2026 02:31:06
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    Kilroy Realty (KRC) is back in focus after releasing fourth quarter and full year 2025 results. The company booked a US$16.26 million real estate impairment and issued 2026 net income guidance, alongside commentary on leasing progress and institutional interest.

    See our latest analysis for Kilroy Realty.

    The recent earnings release and US$16.26 million impairment have come against a weaker trading backdrop for Kilroy Realty, with a 30 day share price return of a 14.40% decline and a 90 day share price return of a 20.16% decline, while the 1 year total shareholder return of 0.36% and 3 year total shareholder return of 4.83% suggest only modest progress over time and fading short term momentum from the current US$32.27 share price.

    If this has you reassessing office real estate, it could be a good moment to scan beyond the sector and see 22 top founder-led companies that might fit your watchlist next.

    With earnings softening, an impairment booked, and the share price sitting at a discount to analyst targets and some intrinsic estimates, you have to ask: Is Kilroy quietly undervalued here, or is the market already pricing in any future growth?

    Most Popular Narrative: 24.8% Undervalued

    With Kilroy Realty closing at $32.27 against a narrative fair value of about $42.93, the gap hinges on how its office and life science story plays out.

    The accelerated recovery and leasing momentum in key West Coast markets, especially in San Francisco with a surge in AI-driven tenant demand and tour activity, could drive revenue growth and occupancy stabilization, supporting higher long-term cash flows.

    Read the complete narrative.

    Curious what kind of revenue path, margin reset, and future earnings multiple need to line up for that number to make sense? The full narrative lays out a detailed playbook of leasing assumptions, tenant mix shifts, and profitability targets that sit behind this fair value call, without you having to piece together every estimate yourself.

    Result: Fair Value of $42.93 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, you still need to consider that weaker long term office demand and tenant downsizing could pressure occupancy, rents, and the earnings multiple that supports this narrative.

    Find out about the key risks to this Kilroy Realty narrative.

    Next Steps

    If this mix of potential upside and risk leaves you undecided, take a closer look at the numbers yourself and move quickly to shape your own view. You can begin with the 5 key rewards and 3 important warning signs.

    Looking for more investment ideas?

    If Kilroy has you thinking harder about where your next dollar should go, do not stop here, you might miss setups that suit your goals better.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.