Kilroy Realty (NYSE:KRC) versus Office Properties Income Trust (NASDAQ:OPI) Head-To-Head Contrast

Office Properties Income Trust (NASDAQ:OPI) and Kilroy Realty (NYSE:KRC) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Profitability

This table compares Office Properties Income Trust and Kilroy Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Office Properties Income Trust	N/A	N/A	N/A
Kilroy Realty	15.47%	3.04%	1.56%

Institutional and Insider Ownership

64.4% of Office Properties Income Trust shares are owned by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are owned by institutional investors. 1.8% of Office Properties Income Trust shares are owned by company insiders. Comparatively, 0.8% of Kilroy Realty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Office Properties Income Trust and Kilroy Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Office Properties Income Trust	1	0	0	1	2.50
Kilroy Realty	2	9	5	0	2.19

Office Properties Income Trust currently has a consensus price target of $27.00, indicating a potential upside of 49.50%. Kilroy Realty has a consensus price target of $39.13, indicating a potential upside of 6.40%. Given Office Properties Income Trust’s stronger consensus rating and higher probable upside, research analysts clearly believe Office Properties Income Trust is more favorable than Kilroy Realty.

Earnings & Valuation

This table compares Office Properties Income Trust and Kilroy Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Office Properties Income Trust	$466.97 million	2.86	N/A	N/A	N/A
Kilroy Realty	$1.11 billion	3.84	$276.12 million	$1.42	25.90

Kilroy Realty has higher revenue and earnings than Office Properties Income Trust.

Dividends

Office Properties Income Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 5.9%. Kilroy Realty pays out 152.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Kilroy Realty beats Office Properties Income Trust on 8 of the 13 factors compared between the two stocks.

About Office Properties Income Trust

Office Properties Income Trust is a real estate investment trust. It owns, operates, and leases office buildings to single tenants and multi-tenant buildings. The company was founded on February 17, 2009 and is headquartered in Newton, MA.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.