Kilroy Realty Reports Strong Q2 Leasing Momentum and Affirms Guidance
Kilroy Realty Corporation (NYSE: KRC) reported improved leasing conditions during its second-quarter earnings call, with a total of 376,000 square feet executed in new and renewal leases. This brought first-half leasing volume to over 944,000 square feet, up more than 40% year-over-year. GAAP rental rates increased by 21%, while cash rents rose 6.1%. Positive re-leasing spreads returned for the first time in nearly two years. The company also highlighted a strong signed lease pipeline of over one million square feet representing $78 million in annualized base rent, with average base rent per square foot exceeding $75—30% above current portfolio levels. Kilroy affirmed its 2026 FFO guidance range and same-property NOI growth outlook while managing balance sheet strength through credit facility expansions, note repayments, and capital recycling efforts. San Francisco continued to show strong demand with four consecutive quarters of positive net absorption. The company noted reduced sublease space in high-quality properties and rising effective rents by about 15% year-over-year.
Tickers: $KRC
Topics: balance sheet management leasing activity noi growth q2 earnings