Kilroy Realty at BofA NY Global Real Estate Conference 2026: leasing momentum builds

Kilroy Realty reported on September 16, 2026 at the BofA NY Global Real Estate Conference that leasing momentum is growing across its West Coast office and life science portfolio. San Francisco has emerged as the strongest market, driven by demand from AI, tech, life science, and robotics sectors. The company has seen an increase in signed but unoccupied leases, which should support occupancy in upcoming quarters.

Despite near-term challenges like a significant 2027 lease expiration and higher refinancing costs due to elevated interest rates, Kilroy remains undervalued according to InvestingPro analysis. The REIT offers a dividend yield of 6.19% with a market capitalization of $4.03 billion. Notable lease risks include a 500,000-square-foot DIRECTV lease in El Segundo, set to expire in late 2027.

Kilroy is investing in higher-quality submarkets such as Beverly Hills, Del Mar, and Torrey Pines. The company's portfolio is primarily concentrated in the San Francisco Bay Area, with additional holdings in the Pacific Northwest, San Diego, Los Angeles, and Austin, Texas. Overall, there is a broad improvement in leasing activity across these markets, with demand coming from both new economy and traditional office users.