Hedge Fund’s $358 Million Kilroy Realty Stake Reveals a Big Contrarian Bet on West Coast Real Estate

1 hour ago 1

Jonathan Ponciano, The Motley Fool

Mon, December 8, 2025 astatine 7:42 AM CST 5 min read

New York City-based D1 Capital Partners added astir 6.6 cardinal shares of Kilroy Realty Corporation successful the 3rd quarter.
The worth of the fund's Kilroy presumption accrued by $293.7 cardinal from 4th to quarter.
D1 reported holding astir 8.5 cardinal Kilroy shares valued astatine $358.4 cardinal astatine quarter-end, accounting for 4.1% of assets.
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New York City-based D1 Capital Partners disclosed a important bargain of Kilroy Realty Corporation connected November 14, adding astir 6.6 cardinal shares during the 3rd 4th and seeing its wide presumption summation successful worth by an estimated $293.7 million.

According to a Securities and Exchange Commission (SEC) filing dated November 14, D1 Capital Partners L.P. accrued its involvement successful Kilroy Realty Corporation (NYSE:KRC) by acquiring astir 6.6 cardinal further shares during the quarter. The fund’s presumption grew to astir 8.5 cardinal shares with a quarter-end worth of $358.4 million. The alteration successful presumption size reflects some caller stock purchases and changes successful marketplace prices during the reporting period.

The acquisition lifted Kilroy Realty Corporation to 4.1% of D1 Capital Partners' reportable U.S. equity portfolio arsenic of September 30.

Top 5 holdings pursuing the filing:

NASDAQ: CART: $829.2 cardinal (9.5% of AUM)
NASDAQ: APP: $601.3 cardinal (6.9% of AUM)
NYSE: CLH: $567.9 cardinal (6.5% of AUM)
NYSE: RDDT: $465.6 cardinal (5.4% of AUM)
NYSE: FLS: $397.5 cardinal (4.6% of AUM)

As of Friday, Kilroy shares were priced astatine $40.78, up conscionable 1% implicit the past twelvemonth and good underperforming the S&P 500, which is up 13% successful the aforesaid period.

Metric

Value

Price (as of marketplace adjacent Friday)	$40.78
Market Capitalization	$4.9 billion
Revenue (TTM)	$1.1 billion
Net Income (TTM)	$322.1 million

Kilroy Realty Corporation develops, acquires, and manages bureau and mixed-use existent estate, with a portfolio focused connected bureau and beingness subject abstraction arsenic good arsenic prime residential units.
The institution operates arsenic a existent property concern spot (REIT), generating gross chiefly from leasing commercialized properties and improvement projects crossed large West Coast markets.
It serves technology, entertainment, beingness science, and concern services companies, targeting tenants seeking modern, sustainable concern environments.

Kilroy Realty Corporation has a stabilized portfolio totaling astir 17 cardinal quadrate feet of chiefly bureau and beingness subject abstraction and maintains a beardown absorption connected sustainability and innovation. The institution leverages decades of improvement and absorption expertise to present high-occupancy, high-quality assets successful cardinal municipality markets. Kilroy's committedness to sustainable gathering operations and strategical tenant relationships provides a competitory borderline successful serving top-tier firm clients.