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Kilroy Realty Corporation (KRC)

Company Dividend Discount ModelIndustry: REIT - OfficeSector: Real Estate

Valuation Snapshot

Stable Growth$49.32 - $102.66$69.55
Multi-Stage$44.62 - $48.63$46.59
Blended Fair Value$58.07
Current Price$42.25
Upside37.45%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.48%8.02%2.162.152.092.001.891.651.512.871.161.07
YoY Growth--0.34%3.18%4.30%5.69%14.43%9.39%-47.34%147.88%8.36%7.07%
Dividend Yield--6.59%6.12%6.44%2.62%2.88%2.60%2.00%4.04%1.61%1.73%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)322.96
(-) Cash Dividends Paid (M)257.72
(=) Cash Retained (M)65.24
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)64.5940.3724.22
Cash Retained (M)65.2465.2465.24
(-) Cash Required (M)-64.59-40.37-24.22
(=) Excess Retained (M)0.6524.8741.02
(/) Shares Outstanding (M)118.71118.71118.71
(=) Excess Retained per Share0.010.210.35
LTM Dividend per Share2.172.172.17
(+) Excess Retained per Share0.010.210.35
(=) Adjusted Dividend2.182.382.52
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.47%5.47%6.47%
Fair Value$49.32$69.55$102.66
Upside / Downside16.74%64.62%142.98%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)322.96340.63359.26378.91399.64421.50434.14
Payout Ratio79.80%81.84%83.88%85.92%87.96%90.00%92.50%
Projected Dividends (M)257.72278.77301.35325.56351.52379.35401.58

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.47%5.47%6.47%
Year 1 PV (M)253.14255.56257.99
Year 2 PV (M)248.49253.27258.09
Year 3 PV (M)243.77250.84258.04
Year 4 PV (M)239.01248.30257.85
Year 5 PV (M)234.22245.65257.51
PV of Terminal Value (M)4,078.094,277.044,483.68
Equity Value (M)5,296.725,530.655,773.17
Shares Outstanding (M)118.71118.71118.71
Fair Value$44.62$46.59$48.63
Upside / Downside5.61%10.28%15.11%

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