Yielding 7% And Down 60% - I'm Starting To Like Kilroy

Summary

  • Kilroy Realty Corporation, an office REIT with assets on the West Coast, has seen its stock fall 60% from its all-time high, but its strong quarter and record FFO per share result show resilience.
  • Kilroy has a low payout ratio, strong liquidity, and favorable debt maturity schedule, making it an attractive investment despite the challenges faced by the office real estate sector.
  • Investors should be cautious with office REITs due to the uncertain environment, but Kilroy Realty's high-quality assets and tenant base may offer long-term value.
San Francisco und die Golden Gate bridge

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Introduction

What's the most hated industry to invest in right now? While I don't have the data to give you a scientific answer, I am sure commercial office real estate is one of the areas people avoid right now.

Looking

This article was written by

43.21K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in KRC over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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