Kilroy Realty Appoints Michelle Ngo As CFO; Stock Down 33% YTD

Kilroy Realty on Dec. 30 announced the promotion of three executives within the company. Shares of the real estate investment trust (REIT) gained 2.2% at the close on Wednesday.

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Kilroy Realty (KRC) CFO Tyler H. Rose was promoted to President. SVP and Treasurer Michelle Ngo was promoted to CFO and Treasurer. SVP of Corporate Strategy Eliott Trencher was promoted to SVP and Chief Investment Officer (CIO).

In his role as President, Rose will supervise operations, finance, accounting, legal, and risk management. He will also work with the CEO to help drive the company’s succession planning initiatives.

Ngo, as CFO, will have direct responsibility for the finance, accounting, tax, capital markets and investor relations functions for the company.

Trencher, as CIO, will be responsible for acquisitions, dispositions, joint ventures and new markets along with various other strategic initiatives. At the same time, he will also continue to supervise the company’s residential portfolio.

“Tyler has been a leader at Kilroy for over two decades and included among his new responsibilities will be the transfer of knowledge to our next generation of leaders. Michelle and Eliott represent an emerging group of talented and diverse leaders being developed across the company. They have demonstrated expertise, strategic thinking and dedication, and have more than earned their new roles,” said Kilroy Realty CEO John Kilroy.

JPMorgan analyst Anthony Paolone downgraded Kilroy Realty stock on Dec. 21 to Hold from Buy with a $65 price target. The price target implies upside potential of close to 15%.

On Oct. 28, BMO Capital analyst John Kim reiterated a Buy rating on KRC with a price target of $72 (27.2% upside potential).

Kim believed that the company’s recent 3Q20 results came in about as good as expected, given current office market conditions. KRC’s 3Q20 results were headlined by a 3Q20 beat, 3.8% SS NOI growth, healthy cash leasing spreads, and a strong balance sheet.

However, leasing activity slowed considerably, and leases signed were short term (1.5 years), as tenants remain uncertain of their future space requirements. Additionally, increasing sublease space and low utilization rates suggest weak West Coast office markets overall, Kim noted.

From the rest of the Street, the stock scores an analyst consensus of a Hold based on 1 Buy and 5 Holds. (See KRC stock analysis on TipRanks)

The average analyst price target of $64.33 implies upside potential of 13.6% to current levels. Shares have lost 33% year-to-date.