** Shares of commercial real estate trust firm Kilroy Realty Corp KRC.N falls 1% to $36 premarket
** BMO cuts PT to $36 from $35, a downside of 5% to the stock's last close
** Says reason for downgrade is mainly due to suboptimal lease ratio and development challenges
** Co's office occupancy fell in Q1 and is expected to decline further, leading to lower net operating income margins and challenges with lease expirations in 2026 - BMO
** Also adds leasing activity declined significantly, with fewer leases executed during the quarter
** 3 of 16 brokerages rate the stock "buy", 11 "hold" and 2 "sell"; their median PT is $35- data compiled by LSEG
** As of last close, stock had fallen 8.8% YTD
(Reporting by Apratim Sarkar)
((Apratim.Sarkar@thomsonreuters.com))