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Kilroy RealtyFRA:KRC -1.76%48 Operating Margin % is 23.99% as of Jun. 2026, which is 17% below its 10-year median of 28.93. GuruFocus rates FRA:KRC with a GF Score™ of 48/100 and a GF Value™ of €29.49 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 734 REITs companies, Kilroy Realty ranks worse than 77.11% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Kilroy Realty's Operating Income for the
three
months ended in Jun. 2026 was €56.7 Mil. Kilroy Realty's Revenue for the
three
months ended in Jun. 2026 was €236.4 Mil. Therefore, Kilroy Realty's Operating Margin % for the quarter that ended in Jun. 2026 was 23.99%.
Good Sign:
Kilroy Realty Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Kilroy Realty's Operating Margin % or its related term are showing as below:
FRA:KRC'
s Operating Margin % Range Over the Past 10 Years
Min: 24.68 Med: 28.93 Max: 30.46
Current: 24.68
FRA:KRC's Operating Margin % is ranked worse than 77.11% of 734
companies
in the REITs industry
Industry Median: 52.645
vs FRA:KRC: 24.68
Kilroy Realty's 5-Year Average Operating Margin % Growth Rate was 0.60% per year.
Kilroy Realty's Operating Income for the
three
months ended in Jun. 2026 was €56.7 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was €232.1 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Kilroy Realty Operating Margin % Related Terms
Kilroy Realty Operating Margin % Historical Data
* Premium members only.
The historical data trend for Kilroy Realty's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:KRC vs CDP, SLG, CUZ: Operating Margin % Comparison
For the REIT - Office subindustry, Kilroy Realty's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kilroy Realty Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Kilroy Realty's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kilroy Realty's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Kilroy Realty's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kilroy Realty (FRA:KRC) has a Operating Margin % of 23.99% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kilroy Realty and its competitors. This is 17% below median its historical median of 28.93. Over the past decade, Kilroy Realty's Operating Margin % has ranged from 24.68 to 30.46. According to the industry distribution chart, Kilroy Realty ranks #566 out of 734 companies in the REITs industry, placing it in the top 77.1%.
Is Kilroy Realty's Operating Margin % too high?
Kilroy Realty's current Operating Margin % of 23.99% is 17% below median its 10-year median of 28.93. Over the past 10 years, this metric has ranged from a low of 24.68 to a high of 30.46. The REITs industry median Operating Margin % is 52.65. Kilroy Realty's value of 23.99% is 54.4% below this industry median. Based on the distribution chart, Kilroy Realty ranks #566 out of 734 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Kilroy Realty has a GF Score™ of 48/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kilroy Realty's Operating Margin % compare to CDP and SLG?
According to the REITs industry distribution chart, Kilroy Realty ranks #566 out of 734 companies for Operating Margin %. This places Kilroy Realty in the lower half of its industry. The industry median Operating Margin % is 52.65. Kilroy Realty's value of 23.99% is 54.4% below this benchmark. Historically, Kilroy Realty's own Operating Margin % has ranged from 24.68 to 30.46 over the past decade. While the company's 10-year median is 28.93 vs. the industry median of 52.65, Kilroy Realty has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a REITs company?
The median Operating Margin % among REITs companies is 52.65, based on 734 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kilroy Realty's current Operating Margin % of 23.99% is 54.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Kilroy Realty and its competitors. For the REITs industry, the median Operating Margin % is 52.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kilroy Realty's current Operating Margin % is 23.99%, which is 17% below median its own 10-year median of 28.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kilroy Realty stock overvalued right now?
Based on GuruFocus' analysis, Kilroy Realty (FRA:KRC) is currently considered Modestly Overvalued. The stock's GF Value™ is €29.49, compared to a current price of €33.40 — trading 13.3% above its estimated fair value. The current Operating Margin % is 23.99%, which is 17% below median its 10-year median of 28.93 and 54.4% below the REITs industry median of 52.65. Kilroy Realty's overall GF Score™ is 48/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Kilroy Realty (FRA:KRC), the current Operating Margin % is 23.99% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kilroy Realty (FRA:KRC) Overvalued in 2026?
Based on GuruFocus' analysis, Kilroy Realty stock appears to be overvalued.
The current stock price of €33.40 is trading 13.3% above its estimated GF Value™ of €29.49.
GuruFocus considers Kilroy Realty to be Modestly Overvalued.
Key valuation signals for FRA:KRC:
Operating Margin %: 23.99% (17% below median its 10-year median of 28.93)
GF Value™: €29.49 vs. price of €33.40 (13.3% above fair value)
Industry Position: 54.4% below the REITs median (#566 of 734)
No single metric tells the full story. See the FRA:KRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kilroy Realty is a premier owner and landlord of approximately 16.3 million square feet of office space across Los Angeles, San Diego, the San Francisco Bay Area, Austin, Texas, and greater Seattle. The company operates as a real estate investment trust.
48GF Score
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