Kilroy reported same-property cash net operating income (NOI) growth of 2.7% for the second quarter. Cash and GAAP rents increased 2.5% and 15.3%, respectively, on approximately 285,000 square feet of leases executed. That said, the company experienced a sharp decline in stabilized occupancy of approximately 500 basis points due to large tenant move outs. As of second-quarter end, the portfolio was 86.6% occupied and 88.6% leased, compared with 91.6% occupied and 92.9% leased just two quarters prior at year-end 2022. We believe occupancy will remain relatively flat, in the high-80% area, over the next two years. We expect office fundamentals will remain under pressure over the near term, especially as leases expire. This could add modest pressure to operating performance
