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

1.5%

KRC

-0.3%

US REITs

1.8%

US Market


1 Year Return

11.4%

KRC

19.5%

US REITs

7.3%

US Market

Return vs Industry: KRC underperformed the US REITs industry which returned 19.5% over the past year.

Return vs Market: KRC exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

KRCIndustryMarket
7 Day1.5%-0.3%1.8%
30 Day0.9%0.9%-0.7%
90 Day2.7%7.0%0.06%
1 Year14.3%11.4%24.9%19.5%9.7%7.3%
3 Year20.5%9.1%34.5%17.4%46.3%36.9%
5 Year37.7%19.4%63.3%28.9%64.5%46.5%

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 compared to its fair value and its price relative to the market?

29.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: KRC ($78.23) is trading below our estimate of fair value ($110.94)

Significantly Undervalued: KRC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KRC is good value based on its PE Ratio (29x) compared to the REITs industry average (36.2x).

PE vs Market: KRC is poor value based on its PE Ratio (29x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: KRC is poor value based on its PEG Ratio (26.2x)


Price to Book Ratio

PB vs Industry: KRC is overvalued based on its PB Ratio (2x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Kilroy Realty forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRC's forecast earnings growth (1.1% per year) is below the savings rate (2.7%).

Earnings vs Market: KRC's earnings (1.1% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: KRC's earnings are forecast to grow, but not significantly.

Revenue vs Market: KRC's revenue (11.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: KRC's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: KRC's Return on Equity is forecast to be low in 3 years time (4.9%).


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

Earnings Trend: KRC's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: KRC's earnings growth over the past year (73.2%) exceeds its 5-year average (15.4% per year).

Earnings vs Industry: KRC earnings growth over the past year (73.2%) exceeded the REITs industry 17.6%.


Return on Equity

High ROE: KRC's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: KRC's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: KRC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Kilroy Realty's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: KRC has a high level of physical assets or inventory.

Debt Coverage by Assets: KRC's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: KRC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if KRC has a sufficient allowance for bad loans.

Low Risk Liabilities: KRC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if KRC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: KRC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if KRC has an appropriate level of bad loans.


Next Steps

Dividend

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

2.48%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.5%markettop25%3.7%industryaverage3.6%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KRC's dividend (2.48%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KRC's dividend (2.48%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: KRC's dividend payments have been volatile in the past 10 years.

Growing Dividend: KRC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.9%), KRC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KRC's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

John Kilroy (70yo)

23.1yrs

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

Compensation vs. Market: John's total compensation ($USD43.62M) is about average for companies of similar size in the US market ($USD6.79M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.8yrs

Average Tenure

58yo

Average Age

Experienced Management: KRC's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: KRC's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: KRC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$9,71920 Sep 19
Merryl Werber
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares125
Max PriceUS$77.75
SellUS$332,62605 Jun 19
Jolie Hunt
EntityIndividual
Role
Member of the Board of Directors
Independent 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: 23.1yrs
    • Compensation: US$43.62m
  • Jeffrey Hawken (60yo)

    Executive VP & COO

    • Tenure: 22.8yrs
    • Compensation: US$6.40m
  • Tyler Rose (58yo)

    • Tenure: 9.8yrs
    • Compensation: US$5.13m
  • Rob Paratte (52yo)

    Executive Vice President of Leasing and Business Development

    • Tenure: 5.8yrs
  • Michelle Ngo

    Senior VP & Treasurer

    • Tenure: 0yrs
  • Heidi Roth (47yo)

    Executive VP

    • Tenure: 0.7yrs
  • Justin Smart (59yo)

    Executive Vice President of Development & Construction Services

    • Tenure: 19.2yrs
    • Compensation: US$4.44m
  • Jonathan Praw

    Senior VP & Chief Investment Officer

    • Tenure: 0.2yrs
  • Mike Grisso

    Senior Vice President of Development & Land Planning

    • Tenure: 5.3yrs
  • Merryl Werber (49yo)

    Senior VP

    • Tenure: 0.7yrs

Board Members

  • Ed Brennan (67yo)

    Lead Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$253.78k
  • John Kilroy (70yo)

    Chairman

    • Tenure: 23.1yrs
    • Compensation: US$43.62m
  • Scott Ingraham (65yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$190.03k
  • Peter Stoneberg (64yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$183.78k
  • Gary Stevenson (62yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$183.78k
  • Jolie Hunt (40yo)

    Independent Director

    • Tenure: 4.4yrs
    • 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$8.032b
  • Market Cap: US$7.899b
  • 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 Analysis2019/10/17 23:36
End of Day Share Price2019/10/17 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.