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Kilroy Realty falls after BMO downgrades on low-lease ratio

ReutersJul 16, 2025 12:00 PM

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

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