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Kilroy Realty downgraded to Equal Weight from Overweight at Wells Fargo

Kilroy Realty downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo downgraded Kilroy Realty (KRC) to Equal Weight from Overweight with a price target of $35, down from $43. The company is likely to face “stiff earnings headwind from capitalized interest burn off,” the analyst tells investors in a research note. The firm has grown “incrementally concerned” about potential funds from operations headwinds from Kilroy’s lack of leasing and burn-off of capitalized interest on KOP II and possibly Flower Mart. These have potential to largely offset the positive leasing progress, contends Wells.

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