Summary: Kilroy Realty Corp.

Mid-sized office REIT focused on West Coast markets; Well-occupied, high-quality assets located in higher growth markets; Higher-than-average EBITDA margins relative to peers; Geographically concentrated in San Francisco and high exposure to technology, life science/healthcare, and media tenants; and High exposure to execution risk because of its large development pipeline. Leverage-neutral development spending; Strengthened debt-to-EBITDA to offset development exposure; Adequate liquidity with ample availability under its credit facility; and Largely unsecured asset base, which provides greater financial flexibility. The stable outlook on Kilroy Realty Corp. (KRC) reflects S&P Global Ratings' 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 in the 5.5x to 6.5x

...Business Risk: Satisfactory Financial Risk: Intermediate + Mid-sized office REIT focused on West Coast markets; + Well-occupied, high-quality assets located in higher growth markets; + Higher-than-average EBITDA margins relative to peers; + Geographically concentrated in San Francisco and high exposure to technology, life science/healthcare, and media tenants; and + High exposure to execution risk because of its large development pipeline. + Leverage-neutral development spending; + Strengthened debt-to-EBITDA to offset development exposure; + Adequate liquidity with ample availability under its credit facility; and + Largely unsecured asset base, which provides greater financial flexibility....

Summary