UPDATE: JP Morgan Lowers PT on Kilroy Realty
JP Morgan published a research report on Kilroy Realty (NYSE: KRC) and has lowered estimates after the company reported second quarter earnings.
In the report, JP Morgan wrote, "We are updating our model and lowering our estimates post 2Q earnings to incorporate the 2Q NOI miss relative to our estimate and KRC's recent equity issuance. Our new 2012 and 2013 FFO/share estimates are lower by $0.13 and $0.12, respectively, at $2.24 and $2.55. However, we note that our 2012 FFO/share estimate contains $0.02/share of non-cash charges related to the redemption of preferred stock in 3Q, which we do not believe the Street is modeling. Excluding this charge, our 2012 FFO/share estimate is $2.26, which falls $0.01 below Bloomberg consensus and in line with the midpoint of company guidance ($2.21 to $2.31/share). Our 2013 FFO/share estimate of $2.55 lies $0.01/share above consensus, but it is uncertain what analysts are modeling regarding the timing of the sale of KRC's industrial portfolio, which could swing numbers. We also include an additional $0.02/share of acquisition costs in our 2012 estimate and $0.03/share of acquisition costs in our 2013 estimate."
JP Morgan lowered its price target from $52 to $51 and maintained its Overweight rating on Kilroy Realty, which is currently trading down 0.40 percent from Tuesday's $47.37 closing price.
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