BTIG analyst Tom Catherwood has maintained their neutral stance on KRC stock, giving a Hold rating today.
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Tom Catherwood has given his Hold rating due to a combination of factors related to Kilroy Realty’s recent performance and future outlook. Despite Kilroy Realty’s impressive financial performance in the fourth quarter of 2024, with funds from operations per share exceeding expectations, the guidance for fiscal year 2025 fell short of consensus estimates. This mixed performance is attributed to concerns about declining occupancy rates and unleased active developments, which suggest potential challenges in maintaining tenant retention levels observed in 2024.
Furthermore, there are looming uncertainties regarding leasing demand, as a significant portion of leases is set to expire in 2026, posing potential earnings pressures. The company’s FY 2025 guidance indicates a decrease in average occupancy and a decline in cash same-store net operating income, which raises concerns about the sustainability of their performance. These factors, coupled with increased general and administrative expenses and development spending, contribute to the cautious outlook, justifying the Hold rating.
In another report released today, BMO Capital also maintained a Hold rating on the stock with a $45.00 price target.
Based on the recent corporate insider activity of 90 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KRC in relation to earlier this year.