CluenexKilroy Realty KRC
Kilroy Realty scores weak on business quality (3.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Kilroy Realty does
Kilroy Realty owns, develops, and manages office and mixed-use properties, generating rental income primarily from tech and life science tenants on the West Coast. The company is actively opening new bayfront spaces like Farewinds at Oyster Point to attract community and tenant engagement.
- What it does best
Kilroy builds high-end life science and office properties in prime West Coast locations, achieving a gross margin of 66.5% that outpaces peers like VNO at 48.3%. This quality draws premier tenants who accept premium rents.
- The main risk
High debt relative to earnings leaves little margin for error, with an interest coverage ratio of just 1.9x. Rising debt costs or tenant move-outs directly threaten cash distributions and debt service.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 24.7% while free cash flow margin is negative due to heavy capital spending of $755 million. Profitability remains pressured as high development costs outpace rental inflows.
Geographic concentration in prime West Coast tech and life science hubs forms its moat, locking in enterprise tenants through specialized infrastructure. Its gross margin ranks in the middle of the pack for its sector.
Revenue contracted by 2.0% to $1.09 billion over the latest period, continuing a stagnant trend visible across historical annual reports where revenue growth sits in the bottom quartile of its sector.
Net debt sits at $4.4 billion with an interest coverage of 1.9x, leaving debt servicing tight. Free cash flow dropped to negative $240 million as capital expenditures hit $755 million, getting softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on KRC
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Kilroy Realty scores weak on the Cluenex quality check (3.5 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 22, 2026.
See KRC today
- Today's verdict on KRC, and why
- Fair value with cautious, base and optimistic cases
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Cite this page: Cluenex, “Kilroy Realty (KRC)”, https://cluenex.com/stocks/krc/, data as of Oct 10, 2026.