This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
: Los Angeles-based Kilroy is a real estate investment trust which owns, operates, develops and acquires office and industrial real estate located in Southern California.
Kilroy Realty was upgraded to overweight, and its target price was lifted by a dollar to $36.
Paolone said the upgrade reflected Kilroy's "ability to complete accretive acquisitions, maintain a strong balance sheet, and increase occupancy."
"Looking ahead, we think the management team will step up and make further acquisitions and the California economy has the potential rebound rapidly at some point," the analyst added.
Still, downside risks include, the possibility of a major tenant terminating its lease, higher costs, land impairments, fewer acquisition opportunities and/or further deterioration of the California labor market or state finances.