Kilroy Realty downgraded to Sector Perform from Outperform at Scotiabank

Scotiabank analyst Nicholas Yulico downgraded Kilroy Realty to Sector Perform from Outperform with a price target of $43, down from $53. The analyst now expects greater occupancy loss from 2023 lease expirations and our expectation for lower leasing volume due to the weaker tech tenant outlook. While the company’s office/lab portfolio is high quality, upside is now more limited due to the weak new leasing environment, the analyst tells investors in a research note. Scotiabank expects 2023 FFOPS guidance to disappoint on lowered occupancy.