Mid-sized office REIT focused on West Coast markets; Well-occupied, high-quality assets driving high rents; Underlying positive industry fundamentals for tech tenants; Higher-than-average EBITDA margins relative to peers; Geographically concentrated in San Francisco and high exposure to TAMI tenants; and High exposure to execution risk because of its large development pipeline. Debt-neutral development spending; Strong fixed-charge coverage (FCC) benefiting from low cost debt; Adequate liquidity with ample access to its credit facility; Largely unsecured asset base, which provides greater financial flexibility. The stable outlook on Kilroy Realty Corp. reflects our expectation that near-term development completions along with strong demand in the company's key markets will lead to sound cash flow growth resulting in debt to EBITDA and FCC hovering around 7.0x
