Kilroy Realty (NYSE: KRC) has a hefty 7% dividend yield today. The reason is pretty simple: It operates a portfolio of office properties largely located in California. Investors are downbeat about the future for offices and tech-heavy California, but management is still very optimistic about the future. Here's how this real estate investment trust (REIT) can afford its generous dividend at a time when many of its office peers have slashed theirs.

SL Green (NYSE: SLG) cut its dividend. Vornado (NYSE: VNO) lowered its dividend. These two REITs are big names in the office niche in which Kilroy operates. Investors are clearly worried that other office REITs will end up following suit -- and in fact, some have. This is largely why Kilroy's dividend yield is so high at 7% (the average REIT has a yield of just 4.3%, using Vanguard Real Estate Index ETF as a proxy).

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Source Fool.com