Kilroy Realty falls after BMO downgrades on low-lease ratio

Kilroy Realty

16/07/2025 12:22

Corrects second bullet to say BMO cut PT to $35 from $36, not to $36 from $35, and adds downgraded rating

   ** Shares of commercial real estate trust firm Kilroy Realty Corp KRC.N falls 1% to $36 premarket

** BMO cuts PT to $35 from $36, a downside of 5% to the stock's last close; cuts to 'underperform' from 'market perform'

** Says downgrade 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))