Kilroy Realty (KRC) Q3 2026 Earnings Call: Leasing Surges, FFO Guidance Raised
Source Tradingkey
Key Takeaways
- Kilroy Realty Corporation reported Q3 2026 FFO of $0.88 per diluted share, including approximately $0.01 of settlement and restoration fee income.
- The company signed approximately 815,000 square feet of new and renewal leases. Year-to-date leasing exceeded 1.75 million square feet, up nearly 44% from the first nine months of 2025.
- Comparable lease rents increased 30.6% on a GAAP basis and 9.7% on a cash basis. Excluding spaces vacant for more than 12 months, spreads reached 37.9% and 14.9%, respectively.
- Leased occupancy rose 150 basis points sequentially to 83.0%, while physical occupancy, including Kilroy Oyster Point Phase 2, declined 10 basis points to 76.9%.
- The signed-but-not-occupied pipeline expanded to more than 1.4 million square feet and $101 million of annualized base rent, supporting management’s outlook for future occupancy and NOI growth.
- Kilroy raised the midpoint of its 2026 FFO guidance by $0.01, setting a revised range of $3.55 to $3.59 per share.
Core Financial Data
| Metric | Q3 2026 result | Change or context |
|---|---|---|
| FFO per diluted share | $0.88 | Includes about $0.01 of settlement and restoration fee income |
| Cash same-property NOI growth | -1.5% | Lower fees and tax refunds reduced growth by 170 basis points |
| Physical occupancy | 76.9% | Down 10 basis points sequentially |
| Leased occupancy | 83.0% | Up 150 basis points sequentially |
| Q3 leasing volume | 815,000 sq. ft. | Spread across 45 transactions |
| Year-to-date leasing | More than 1.75 million sq. ft. | Up nearly 44% year over year |
| GAAP re-leasing spread | 30.6% | Comparable leases signed during the quarter |
| Cash re-leasing spread | 9.7% | Comparable leases signed during the quarter |
| Signed-but-not-occupied pipeline | More than 1.4 million sq. ft. | Represents $101 million of ABR |
| Unused credit and term-loan capacity | More than $1.2 billion | Available to help address maturities |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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