Kilroy Realty Corporation reported a net income of $276.1 million for the fiscal year ending December 31, 2025, a 30.9% increase from $211.0 million in 2024. The company's total revenue for the year was approximately $1.1 billion, with rental income contributing $1.08 billion, reflecting a slight decrease from the previous year. The decrease in rental income was attributed to a decline in straight-line rent and settlement fee income, alongside a reduction in base rent due to lease expirations. The company's Net Operating Income (NOI) for 2025 was $736.2 million, down 3.7% from $764.5 million in 2024, primarily due to lower revenues from the same property portfolio.
Kilroy Realty's stabilized portfolio consisted of 121 properties, totaling approximately 16.3 million rentable square feet, with an average occupancy rate of 81.6% as of December 31, 2025. The company executed new and renewal leases totaling 1.8 million square feet during the year, although the average rental rates for second-generation leases decreased. The company also completed the sale of three operating properties for gross proceeds of approximately $466 million and acquired two properties for $397.3 million, indicating a strategic focus on capital recycling and portfolio optimization.
In terms of operational metrics, Kilroy Realty's employee headcount stood at 241 as of December 31, 2025, with a workforce that is 52% female and 43% ethnically diverse. The company has been recognized for its sustainability efforts, achieving a GRESB 5 Star designation and maintaining a carbon-neutral operation since 2020. The company’s commitment to sustainability is reflected in its development practices, with all new projects being built to LEED specifications.
Looking ahead, Kilroy Realty anticipates continued challenges in the office leasing market, influenced by economic conditions and tenant preferences for flexible work arrangements. The company plans to focus on its development pipeline, which includes eight potential future development sites with an estimated 6 million square feet of potential density. The company’s financial strategy includes maintaining a conservative leverage ratio and ensuring liquidity through various capital sources, including its $1.1 billion unsecured revolving credit facility, which remains undrawn as of year-end 2025.
About KILROY REALTY CORP
Kilroy Realty Corporation is a REIT specializing in the ownership, development, and management of office, life science, and mixed-use properties primarily in California, Washington, and Texas. It focuses on modern, sustainable buildings that attract technology, life sciences, and business tenants. The company emphasizes long-term growth through development, redevelopment, and strategic capital recycling, leveraging strong tenant relationships and sustainability leadership to deliver value.
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