Mid-sized office REIT focused on West Coast markets; Well-occupied, high-quality assets driving high rents; Higher-than-average EBITDA margins relative to peers; Geographically concentrated in San Francisco and high exposure to technology and life science 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 full access to its credit facility; Largely unsecured asset base, which provides greater financial flexibility. The stable outlook on Kilroy Realty Corp. (KRC) reflects our expectation that strong demand in the company's key markets will lead to sound cash flow growth mostly from rent spreads, resulting in debt to EBITDA hovering around 6.5x and fixed-charge-coverage (FCC) above 3.0x. We
