Kilroy Realty: Hold Rating Amid Mixed Financial Signals and Non-Recurring Gains

BTIG analyst Tom Catherwood has maintained their neutral stance on KRC stock, giving a Hold rating on July 14.

Tom Catherwood has given his Hold rating due to a combination of factors impacting Kilroy Realty’s financial performance and market position. The company’s recent quarterly results showed an increase in funds from operations per share, surpassing both the firm’s and the market’s expectations. However, this improvement was largely driven by one-time items, such as higher capitalized interest and termination income, rather than sustainable operational growth.
Despite some positive signs, such as accelerating leasing activity and successful asset sales at a premium, Kilroy Realty faces challenges with declining occupancy rates and lower leasing spreads. The company’s occupancy has decreased, and while leasing activity is picking up, it remains below pre-pandemic levels. These mixed signals, along with the reliance on non-recurring items for financial improvement, suggest a cautious approach, justifying the Hold rating.

In another report released on July 14, Mizuho Securities also maintained a Hold rating on the stock with a $35.00 price target.