Kilroy Realty (KRC) is facing market volatility and competition on its KOP2 project amid anticipated earnings fluctuations due to known tenant moveouts, substantial lease expirations in 2026, and the impact of developments rolling off capitalization, RBC Capital Markets said in a note emailed Monday.
The firm said that interest expenses are expected to rise in 2026 as the Flower Mart project is expected to stop qualifying for capitalization by late 2025 and KOP2 will exit capitalization in January 2026.
Kilroy had strong leasing performance in the Q4 2024, including new leases to help offset a major 2026 lease expiration. However, 216,000 square feet of moveouts in early 2025 will lower occupancy.
RBC said that the transaction market is slowly improving, prompting Kilroy Realty to test asset sales where current valuations may not fully account for medium-term risks.
The firm reduced its price target for Kilroy to $39 from $44, while maintaining its sector perform rating.
Price: 33.14, Change: -0.18, Percent Change: -0.54
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。