Kilroy Realty: Occupancy Levels Need To Surprise To The Upside In 2023

Justin Purohit
2.3K Followers

Summary

  • Kilroy Realty is one of the highest quality operators of office, life science, and mixed-use properties.
  • Compared to peers, Kilroy operates on higher margins, has a stronger dividend track record, and owns a newer class of properties, which is a demand premium in the current environment.
  • Though occupancy levels are also generally higher than their peer set, management is expecting a pullback in 2023. This comes on the heels of a few notable move-outs.
  • While the long-term outlook on the stock is positive, lower expected occupancy in 2023 is one disappointment in an otherwise positive earnings release.

Los Angeles, California, USA downtown cityscape at sunny day

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Kilroy Realty Corporation (NYSE:KRC) is one of the top owners and operators of office, life science, and mixed-use properties, with a sizeable presence in the west-coast markets. In addition, they also have an expanding footprint in the fast growing Austin, Texas region.

This article was written by

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