Stock fact sheet · data as of
Kilroy Realty Corporation (KRC): fair value, margin of safety and Wheel Score
Real Estate · REIT - Office · United States · High Yield Income
Is KRC undervalued?
Kilroy Realty Corporation (KRC) closed at 34.63 on 16 Oct 2026. The GLS average fair value - the simple average of the 6 valuation models that produced a positive number - is 40.02, so the price sits 13% below it. 4 of the 6 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
The 6 models disagree widely: EPV gives 16.08 while Graham Growth gives 82.79. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files KRC under High Yield Income: a dividend yield above 4%.
Nine valuation models for KRC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 38.15 | +10% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 82.79 | +139% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 36.18 | +4% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 35.13 | +1% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 31.78 | -8% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 16.08 | -54% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -40.07 | -216% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 37.63 | +9% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - KRC passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.4 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 2.7%, ROE 5.1%, ROA 2.5% - with debt at 0.89 times equity and negative free cash flow.
The dividend yield is high at 6.24% (payout ratio 152%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Rental 99%, Real Estate, Other 1% (quarter Q4 FY2019).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 2.7% |
|---|---|---|---|
| GLS Moat | 3.4 / 10 | ROE | 5.1% |
| Debt / equity | 0.89 | ROA | 2.5% |
| Free-cash-flow yield | -6.0% | Payout ratio | 152% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 74: Good
KRC scores 74 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 18/25), Piotroski health (13/20), the GLS moat (5/15), the option premium on offer (20/20) and how easily the stock trades (18/20). Moat (5/15) is the part holding the score back.
Implied volatility is 39% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 7,537 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.6M shares a day on a market cap of $4.0B, with a beta of 1.19; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 18 / 25 | 13% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 5 / 15 | moat 3.4/10 | |
| Premium | 20 / 20 | implied volatility 39% | |
| Stability | 18 / 20 | 1.6M shares/day, $4.0B cap, beta 1.19 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Kilroy Realty Corporation reports earnings on 22 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in REIT - Office
The 12 companies below are the closest to Kilroy Realty Corporation by market cap within the REIT - Office industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CDP COPT Defense Properties | 33.21 | 24.08 | -38% | 53Fair | $3.8B |
| CUZ Cousins Properties Incorporated | 27.61 | 9.76 | -183% | 60Fair | $4.5B |
| SLG SL Green Realty Corp. | 46.04 | 34.84 | -32% | 45Weak | $3.3B |
| HIW Highwoods Properties, Inc. | 29.21 | 37.68 | +22% | 72Good | $3.2B |
| VNORP Vornado Realty Trust | 50.11 | 30.11 | -66% | 29No options | $5.3B |
| VNO Vornado Realty Trust | 32.34 | 24.37 | -33% | 58Fair | $6.0B |
| ARE Alexandria Real Estate Equities, Inc. | 42.34 | 117.80 | +64% | 45Weak | $7.4B |
| BXP BXP, Inc. | 59.69 | 41.26 | -45% | 58Fair | $9.5B |
| DEI Douglas Emmett, Inc. | 9.60 | 61.13 | +84% | 45Weak | $1.6B |
| PDM Piedmont Office Realty Trust, Inc. | 8.79 | 6.56 | -34% | 42Weak | $1.1B |
| DEA Easterly Government Properties, Inc. | 21.99 | 37.35 | +41% | 74Good | $1.0B |
| PSTL Postal Realty Trust, Inc. | 22.03 | 29.08 | +24% | 80Prime | $877M |
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Start free See the Sunday ScanQuestions about KRC
Is KRC undervalued right now?
By the GLS models, moderately: at 34.63 the stock trades 13% below the average fair value of 40.02 (data as of 16 Oct 2026).
What is the Wheel Score of KRC and what does it mean?
KRC scores 74 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for KRC?
40.02 per share as of 16 Oct 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Kilroy Realty Corporation report earnings next?
The next earnings report is due on 22 Oct 2026 (after the close), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KRC have listed options, and how liquid are they?
Yes. The nightly snapshot found 170 listed contracts with 7,537 open interest across all expiries and implied volatility of 39% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.