Kilroy Realty Corporation (KRC): Leopold Aschenbrenner Has Bearish Stance on This Stock

We just covered the From Fired Researcher to $13.7 Billion King: How Leopold Aschenbrenner Broke the Hedge Fund World and Kilroy Realty Corporation (NYSE:KRC) ranks 35th on this list.

Latest filings show that Situational Awareness LP has sold off the stake it held in Kilroy Realty Corporation (NYSE:KRC). The stock had appeared in the 13F portfolio of the fund in the fourth quarter of 2025. This stake comprised 1.3 million shares. The firm is a leading US landlord and developer, with operations in the San Francisco Bay Area, Los Angeles, Seattle, San Diego, and Austin. The bear case for the stock focuses on structural headwinds in West Coast office real estate, sub-basement occupancy levels, and underlying cash-flow erosion. Even if bears accept FFO as the primary metric for REIT valuation, the year-over-year trajectory shows a business in active operational decay.

READ MORE: Sell These 4 Stocks and Go All In on These 3 Stocks Before May 9th for 100x Returns?

Kilroy Realty Corporation (NYSE:KRC) reported Q1 2026 FFO of $108.8 million, or $0.91 per diluted share. While this technically beat the lowered guidance, it represents an 11% drop compared to the $1.04 FFO per share generated in Q1 2025. Due to escalating building operations overhead and financing costs on sticky vacancies, the FFO margin dropped to 40% in Q1 2026, down from 45% in the same quarter a year prior. The core asset portfolio of the firm is uniquely exposed to major tech-hub markets, such as San Francisco, Seattle, and Los Angeles, that are continuing to feel the pain of structural work-from-home shifts. The total portfolio occupancy for KRC sat at a concerning 77.6% at the end of Q1 2026.

While we acknowledge the potential of KRC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

READ NEXT: Growth Stock Portfolio: 12 Stock Picks by Carl C. Icahn and Chris Rokos Stock Portfolio: Top 10 Stock Picks .