BTIG Reiterates Neutral Rating on Kilroy Realty (KRC)

BTIG analyst Thomas Catherwood reiterated a Neutral rating on Kilroy Realty (NYSE: KRC).

The analyst comments "Kilroy reported 4Q24 FFO/sh of $1.20, $0.17 above our estimate and the Street, and introduced FY 2025 guidance with a midpoint of $3.95, ($0.17) below consensus. We view 4Q24 results as a mixed bag for the company. On one hand, NOI came in significantly higher than we projected and leasing activity was the strongest in five and a half years. That said, occupancy continued to erode, active developments remain unleased, and 2025 guidance suggests tenant retention could fall short of the 30% level achieved in 2024. What has us most worried, however, is that occupancy is expected to erode despite an otherwise light year for lease expirations in 2025 (~716k SF expire, 5.2% of total SF and 3.8% of ABR). Unless there is a material pickup in leasing demand, KRC could face significant earnings headwinds in 2026 when more than 1.9M SF of leases expire (14.0% of total SF and 11.8% of ABR). During tomorrow's call, we look for more insight into the pace of 2024 move outs, leasing activity thus far in 2025, and the general outlook for West Coast office leasing trends (especially among large tech tenants). Our Estimates are under review."

For an analyst ratings summary and ratings history on Kilroy Realty click here. For more ratings news on Kilroy Realty click here.

Shares of Kilroy Realty closed at $36.79 yesterday.

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