Kilroy Realty continued to modify its portfolio at the end of 2025.
The Los Angeles-based real estate investment trust entered into an agreement to offload a three-building, roughly 430,000-square-foot office campus in San Diego’s I-15 Corridor for $124.5 million. That deal closed last month and amounts to about $290 per square foot.
The three properties at 13480, 13500 and 13520 Evening Creek Drive North were 57,100 and 74 percent occupied, respectively, per the company’s latest annual filing. Kilroy will continue to dispose of millions of dollars worth of non-core real estate, the company said on Tuesday’s fourth-quarter earnings call.
Led by Angela Aman, Kilroy purchased a four-building, 230,000-square-foot life sciences campus in San Diego for $192 million in Torrey Pines, a neighborhood between La Jolla, a life sciences hub, and Del Mar. The deal equated to $835 per square foot. Three of the four properties are 100 percent occupied, and one is 28 percent filled, per a financial filing. Aman called it a “generational opportunity,” on the earnings call, and said it strengthened the company’s San Diego presence.
The firm is following earlier plays to unload under-occupied offices in less desirable locations such as 501 Santa Monica or Sunset Media Center in the heart of Hollywood — and acquire successful properties in hot locations like Maple Plaza, a campus in Beverly Hills, for $205 million or about $700 a foot. The Beverly Hills property continues to attract new and renewal leases, the company said.
Kilroy’s portfolio was about 82 occupied at year end, and Kilroy signed more than 2 million square feet of leases in 2025, its highest annual leasing volume since before the pandemic. But leases for about a million more square feet are set to expire. On a call last quarter, Aman said she mostly anticipates “move-outs,” a point she reiterated on Tuesday’s call. The company anticipates average full year occupancy at 76 percent to 78 percent, per its guidance.
Kilroy reported a net income of $12 million for the quarter ended Dec. 31, 2025, compared to $60 million a year earlier. For the year ended December 2025, the real estate investment trust reported a net income of $276 million compared to $211 million through 2024.
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