Bank of America Merrill Lynch Has Buy On Kilroy Realty Corporation

Bank of America Merrill Lynch is out with a research report on Kilroy Realty Corporation KRC after it reported earnings and it has a Buy rating and a $44 price target on shares. In a note to clients, Bank of America Merrill Lynch writes, "Until 2Q11, KRC had grown occupancy every quarter since 1Q10. The portfolio generated +9.9% YoY cash same store NOI growth in 2Q11 as free rent periods on the new leases signed during this period finally burned off and tenants started paying cash rent. At the same time, KRC's occupancy declined due in large part to one expected move-out in Ventura County. Fortunately, KRC's markets are improving, which should help occupancy recover. KRC continues to find and close on acquisitions in markets where outsized growth in tech and media hiring should maintain office demand and asset prices. KRC raised equity in the quarter and announced a $200M ATM program, suggesting portfolio expansion would continue." Shares of KRC lost 16 cents yesterday to close at $41.42.