$KRC

KILROY REALTY CORP

CIK:0001025996|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue, Product and Service [Extensible List]	Service [Member]	Service [Member]	Service [Member]	Service [Member]
Revenues:
Rental income	$ 268,321	$ 285,071	$ 533,651	$ 551,315
Other property income	4,050	4,821	8,773	9,421
Total revenues	272,371	289,892	542,424	560,736
Expenses:
Property expenses	60,134	58,575	119,417	117,289
Real estate taxes	28,302	26,765	57,084	55,130
Ground leases	3,278	3,019	6,465	6,039
General and administrative expenses	18,933	18,475	39,632	35,376
Leasing costs	2,814	2,277	5,824	5,150
Depreciation and amortization	93,560	87,625	187,904	174,744
Total expenses	207,021	196,736	416,326	393,728
Other Income (Expenses):
Interest income	1,247	512	2,201	1,646
Interest expense	(41,634)	(30,844)	(80,145)	(61,992)
Other (expense) income	(248)	190	141	33
Gains on sales of depreciable operating properties	0	16,554	23,525	16,554
Impairment of real estate assets	0	0	(61,778)	0
Total other expenses	(40,635)	(13,588)	(116,056)	(43,759)
Net income	24,715	79,568	10,042	123,249
Net income attributable to noncontrolling common units of the Operating Partnership	(193)	(663)	(8)	(1,038)
Net income attributable to noncontrolling interests in consolidated property partnerships	(4,617)	(10,456)	(9,396)	(14,754)
Total net income attributable to noncontrolling interests	(4,810)	(11,119)	(9,404)	(15,792)
Net income available to common stockholders	$ 19,905	$ 68,449	$ 638	$ 107,457
Net income available to common stockholders per share – basic (in dollars per share)	$ 0.17	$ 0.58	$ 0.01	$ 0.91
Net income available to common stockholders per share – diluted (in dollars per share)	$ 0.17	$ 0.57	$ 0.01	$ 0.90
Weighted average shares of common stock outstanding – basic (in shares)	116,292,405	118,285,328	116,960,748	118,240,208
Weighted average shares of common stock outstanding – diluted (in shares)	117,062,596	118,683,337	117,699,104	118,673,935

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 10,042	$ 123,249
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of real estate assets and leasing costs	185,016	171,978
Depreciation of non-real estate furniture, fixtures, and equipment	2,888	2,766
Revenues deemed uncollectible	533	820
Non-cash amortization of deferred revenue related to tenant-funded tenant improvements	(6,533)	(7,458)
Straight-line rents, net	801	7,967
Non-cash amortization of net below-market rents	(1,292)	(1,691)
Non-cash amortization of deferred financing costs and debt discounts	4,299	2,397
Non-cash amortization of share-based compensation awards	7,948	8,509
Amortization of right of use ground lease assets	568	548
Gains on sales of depreciable operating properties	(23,525)	(16,554)
Impairment of real estate assets	61,778	0
Net change in other operating assets	(8,311)	(15,347)
Net change in other operating liabilities	(5,310)	3,483
Net cash provided by operating activities	228,902	280,667
Cash flows from investing activities:
Expenditures for development and redevelopment properties and undeveloped land	(126,924)	(81,743)
Expenditures for operating properties and other capital assets	(68,391)	(46,621)
Net proceeds received from dispositions of real estate assets	330,341	28,021
Investment in unconsolidated investment fund	(1,004)	0
Net cash provided by (used in) investing activities	134,022	(100,343)
Cash flows from financing activities:
Distributions to noncontrolling interests in consolidated property partnerships	(12,608)	(14,324)
Dividends and distributions paid to common stockholders and common unitholders	(127,936)	(128,855)
Taxes paid upon net share settlement of restricted share units	(6,970)	(6,206)
Principal payments and repayments of secured debt	(3,216)	(3,093)
Financing costs	(15,034)	(407)
Repurchase of common stock	(72,671)	0
Repayments of unsecured debt	(50,000)	0
Borrowings on unsecured revolving credit facility	40,000	0
Repayments on unsecured revolving credit facility	(40,000)	0
Net cash used in financing activities	(288,435)	(152,885)
Net increase in cash and cash equivalents	74,489	27,439
Cash and cash equivalents, beginning of period	179,316	165,690
Cash and cash equivalents, end of period	$ 253,805	$ 193,129

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Real estate assets:
Land	$ 1,730,514	$ 1,641,913
Buildings and improvements	9,051,287	8,505,486
Undeveloped land and construction in progress	1,602,626	2,387,742
Total real estate assets held for investment	12,384,427	12,535,141
Accumulated depreciation and amortization	(2,936,240)	(2,843,811)
Total real estate assets held for investment, net	9,448,187	9,691,330
REAL ESTATE AND OTHER ASSETS HELD FOR SALE, NET	0	115,155
Cash and cash equivalents	253,805	179,316
Marketable securities	34,990	30,807
Current receivables (net of allowances of $327 and $244 as of June 30, 2026 and December 31, 2025 respectively)	12,184	12,765
Deferred rent receivables, net	423,968	424,794
Deferred leasing costs and acquisition-related intangible assets, net	264,033	278,232
Right of use ground lease assets, net	127,548	128,116
Prepaid expenses and other assets, net	67,233	54,561
Total assets	10,631,948	10,915,076
Liabilities:
Secured debt, net	590,095	592,685
Unsecured debt, net	3,947,034	3,996,774
Accounts payable, accrued expenses, and other liabilities	260,644	288,963
Ground lease liabilities	127,198	127,628
Accrued dividends and distributions	63,422	65,009
Deferred revenue and acquisition-related intangible liabilities, net	117,845	125,628
Rents received in advance and tenant security deposits	77,736	75,701
Liabilities related to real estate assets held for sale	0	4,945
Total liabilities	5,183,974	5,277,333
Commitments and contingencies (Note 10)
Stockholders’ Equity:
Common stock, $.01 par value, 280,000,000 shares authorized, 116,308,988 and 118,372,451 shares issued and outstanding	1,163	1,184
Additional paid-in capital	5,166,167	5,230,747
Retained earnings	58,881	188,876
Total stockholders’ equity	5,226,211	5,420,807
Noncontrolling Interests:
Common units of the Operating Partnership	50,935	51,911
Consolidated property partnerships	170,828	165,025
Total noncontrolling interests	221,763	216,936
Total equity	5,447,974	5,637,743
Total liabilities and equity	$ 10,631,948	$ 10,915,076