Kilroy Realty Corporation (NYSE: KRC) reported financial and operational results for the third quarter ended September 30, 2026. The company announced revenues of $271.6 million for the quarter, a decrease from the $279.7 million reported in the same period of 2025. Net income available to common stockholders was $15.5 million, or $0.13 per diluted share, compared to $156.2 million, or $1.31 per diluted share, in the prior year.
Funds from operations (FFO) for the quarter totaled $104.6 million, or $0.88 per diluted share, down from $130.6 million, or $1.08 per diluted share, in the prior year.
Leasing activity remained a focal point of the report. During the quarter, Kilroy signed approximately 815,000 square feet of leases. This activity included 345,000 square feet of new leasing on previously vacant space, 127,000 square feet of new leasing on currently occupied space, and 343,000 square feet of renewal leasing. Notably, the company secured a 12-year, approximately 243,000-square-foot renewal at Crossing 900 with Box, Inc.
The company’s stabilized portfolio was 76.9% occupied and 83.0% leased as of September 30, 2026. Excluding Kilroy Oyster Point Phase 2, the stabilized portfolio was 80.7% occupied and 84.8% leased. GAAP and cash rents on leases signed during the quarter increased 30.6% and 9.7%, respectively, from prior levels on Second Generation leasing, excluding short-term leasing.
On the balance sheet, Kilroy repaid $200.0 million of 4.350% Private Placement Senior Notes Series B due October 2026 in July. Additionally, the company entered into an agreement in August to sell the land at Kilroy East Village in San Diego for $19.5 million in gross sales proceeds, with the transaction anticipated to close in the fourth quarter.
The company declared and paid a regular quarterly cash dividend of $0.54 per share on October 14, 2026, to stockholders of record on September 30, 2026.
Kilroy updated its full-year 2026 Nareit-defined FFO per share guidance to a range of $3.55 to $3.59 per diluted share, with the low end of the range raised from the previous estimate of $3.49.
