Kilroy Realty Seen Benefiting From Strengthening West Coast Office Leasing, BofA Says
Kilroy Realty (KRC) stands to gain from improving West Coast office demand, and the stock remains reasonably valued relative to peers, BofA Securities said Tuesday in a report.AI-related activity is driving a meaningful share of leasing momentum, particularly in the San Francisco Bay Area, which accounts for 44% of Kilroy's net operating income, BofA said. The REIT has seen "substantial rent growth" in select buildings and submarkets tied to AI-driven demand, report said.A recent meeting with Kilroy indicated that momentum has continued into Q2 with tenants increasingly pursuing early renewals for 2028 and beyond, BofA said. That trend is allowing Kilroy to be more selective on pricing, the report said.Kilroy "has had an active start to the year recycling capital and improving the quality of the portfolio," the report said.BofA boosted its rating on Kilroy's stock to buy from neutral and increased its price objective to $44 from $42.Price: $38.54, Change: $+0.17, Percent Change: +0.44%
