International Strategy & Investment Group Reports on Kilroy Realty

International Strategy & Investment Group Inc has published a report on Kilroy Realty KRC. In the report, International Strategy & Investment Group wrote, "KRC's 2Q FFO of $0.52/sh fell short of our estimate and consensus; Maintain ‘11 est Kilroy reported Q2 FFO of $0.52 which was two cents below our estimate and $0.03 below the Street. The primary variance with our model was lower property NOI (due in part to more limited occupancy gains than we'd expected), in addition to a lower contribution to FFO from acquisitions than we'd modeled. Our 2011 estimate remains unchanged at $2.26 ($0.02 below consensus and $0.05 below the midpoint of guidance). Our 2011 estimat assumes an additional $266mn of acquisitions at a 6.5% cap rate and an additional $150mn of equity to bring KRC's net debt to total market cap ratio back toward 40%. We are lowering our 2012 FFOPS estimate by 6% to $2.46 on a modeling change although we note our AFFO estimate remains $1.72." International Strategy & Investment Group rated Kilroy Realty a Hold rating with a $41 price rating. Kilroy Realty closed Monday at $41.42.