Kilroy Realty reported third quarter 2026 revenue of $271.6 million, surpassing expectations, while FFO per share met estimates at $0.88. The company demonstrated significant leasing momentum, signing approximately 815,000 square feet of leases—the highest quarterly volume since 2019. Despite this activity, stabilized portfolio occupancy remained flat sequentially, reflecting the ongoing vacancy challenges in West Coast office markets.
Key Highlights
- Record leasing volume of 815,000 square feet was driven by a 243,000 square-foot, 12-year renewal with Box, Inc. and activity across all five operating regions.
- Pricing power remained intact for premium space, with GAAP and cash rents on new leases increasing 30.6% and 9.7%, respectively.
- Management narrowed full-year 2026 FFO guidance to $3.55–$3.59 per share, effectively raising the midpoint by $0.01 from the previous range of $3.49–$3.63.
- The company strengthened its liquidity position by repaying $200 million in senior notes at par during July.