NYSE:KRC

Stock Analysis Report

Executive Summary

Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the West Coast’s premier landlords.

Snowflake

Fundamentals

Acceptable track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Kilroy Realty's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

NYSE:KRC

0.3%

US REITs

-0.7%

US Market


1 Year Return

7.6%

NYSE:KRC

8.2%

US REITs

-0.5%

US Market

KRC matched the REITs industry (8.1%) over the past year.

KRC outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

KRCIndustryMarket
7 Day1.3%0.3%-0.7%
30 Day3.1%3.7%-3.0%
90 Day3.2%4.0%0.9%
1 Year10.5%7.6%13.0%8.2%1.7%-0.5%
3 Year24.0%12.3%24.7%8.4%39.5%30.4%
5 Year44.0%25.0%58.7%25.0%54.1%37.0%

Price Volatility Vs. Market

How volatile is Kilroy Realty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kilroy Realty undervalued based on future cash flows and its price relative to the stock market?

29.16x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Kilroy Realty's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Kilroy Realty's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Kilroy Realty is good value based on earnings compared to the US REITs industry average.

Kilroy Realty is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Kilroy Realty earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Kilroy Realty is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Kilroy Realty expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

-5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Kilroy Realty's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).

Kilroy Realty's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Kilroy Realty's revenue growth is expected to exceed the United States of America market average.

Kilroy Realty's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Kilroy Realty's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Kilroy Realty is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Kilroy Realty performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Kilroy Realty's year on year earnings growth rate has been positive over the past 5 years.

Kilroy Realty's 1-year earnings growth exceeds its 5-year average (73.2% vs 15.4%)

Kilroy Realty's earnings growth has exceeded the US REITs industry average in the past year (73.2% vs 16.9%).


Return on Equity

Kilroy Realty has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Kilroy Realty used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Kilroy Realty's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kilroy Realty's financial position?


Financial Position Analysis

Kilroy Realty's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Kilroy Realty's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Kilroy Realty's level of debt (76.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (85.7% vs 76.1% today).

Debt is not well covered by operating cash flow (12.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is Kilroy Realty's current dividend yield, its reliability and sustainability?

2.47%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Kilroy Realty's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Kilroy Realty's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (247.5x coverage).


Next Steps

Management

What is the CEO of Kilroy Realty's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

John Kilroy (70yo)

22.9yrs

Tenure

US$43,624,774

Compensation

Mr. John B. Kilroy Jr. serves as the Chief Executive Officer, President and Director of Kilroy Realty Corporation since September 1996 and has been its Chairman of the Board since February 28, 2013. Mr. Ki ...


CEO Compensation Analysis

John's remuneration is higher than average for companies of similar size in United States of America.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.6yrs

Average Tenure

55yo

Average Age

The average tenure for the Kilroy Realty management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.3yrs

Average Tenure

64.5yo

Average Age

The tenure for the Kilroy Realty board of directors is about average.


Insider Trading

Kilroy Realty individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$332,62605 Jun 19
Jolie Hunt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,434
Max PriceUS$75.02
SellUS$383,55025 Mar 19
Justin Smart
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Development & Construction Services
Shares5,000
Max PriceUS$76.71
SellUS$287,20518 Mar 19
Edward Brennan
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,843
Max PriceUS$74.73
SellUS$407,72312 Mar 19
Heidi Roth
EntityIndividual
Role
Chief Administrative Officer
Executive VP
Shares5,440
Max PriceUS$74.95
SellUS$2,236,14215 Feb 19
Jeffrey Hawken
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares30,516
Max PriceUS$73.28
SellUS$1,451,40011 Feb 19
Tyler Rose
EntityIndividual
Role
Chief Financial Officer
Shares20,000
Max PriceUS$72.57

Ownership Breakdown


Management Team

  • John Kilroy (70yo)

    Chairman

    • Tenure: 22.9yrs
    • Compensation: US$43.62m
  • Jeffrey Hawken (60yo)

    Executive VP & COO

    • Tenure: 22.6yrs
    • Compensation: US$6.40m
  • Tyler Rose (58yo)

    • Tenure: 9.7yrs
    • Compensation: US$5.13m
  • Rob Paratte (52yo)

    Executive Vice President of Leasing and Business Development

    • Tenure: 5.6yrs
  • Michelle Ngo

    Senior VP & Treasurer

    • Tenure: 0.0yrs
  • Heidi Roth (47yo)

    Executive VP

    • Tenure: 0.5yrs
  • Justin Smart (59yo)

    Executive Vice President of Development & Construction Services

    • Tenure: 19.0yrs
    • Compensation: US$4.44m
  • Mike Grisso

    Senior Vice President of Development & Land Planning

    • Tenure: 5.1yrs
  • Steve Rosetta (46yo)

    Chief Investment Officer & Executive VP

    • Tenure: 2.2yrs
    • Compensation: US$4.71m
  • Merryl Werber (49yo)

    Senior VP

    • Tenure: 0.5yrs

Board Members

  • Ed Brennan (67yo)

    Lead Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$253.78k
  • John Kilroy (70yo)

    Chairman

    • Tenure: 22.9yrs
    • Compensation: US$43.62m
  • Scott Ingraham (65yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$190.03k
  • Peter Stoneberg (64yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$183.78k
  • Gary Stevenson (62yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$183.78k
  • Jolie Hunt (40yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$181.28k

Company Information

Kilroy Realty Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kilroy Realty Corporation
  • Ticker: KRC
  • Exchange: NYSE
  • Founded: 1947
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$8.092b
  • Market Cap: US$7.933b
  • Shares outstanding: 103.00m
  • Website: https://www.kilroyrealty.com

Number of Employees


Location

  • Kilroy Realty Corporation
  • 12200 West Olympic Boulevard
  • Suite 200
  • Los Angeles
  • California
  • 90064
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KRCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1997
KRCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1997

Biography

Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the West Coast’s premier landlords. The company has over 70 years of experi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:41
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.