Analyst Note| Kevin Brown |
No-moat rated Kilroy Realty reported strong first-quarter results as a booming technology and life sciences sector on the west coast continued to prosper even in the face of the pandemic. The firm reported first-quarter funds from operations, or FFO, of $0.98 per share, slightly lower than the $1.00 in FFO reported for the first quarter of 2020. These results are especially encouraging against a backdrop of a challenging office real estate market amid a pandemic that has significantly dented office utilization rates. We are maintaining our $61 per share fair value estimate for Kilroy Realty after incorporating these results into our valuation model.