UPDATE: Stifel Nicolaus Upgrades Kilroy Realty Corporation to Buy on Accretive Build-to-Suit Development

Stifel Nicolaus raised its rating on Kilroy Realty Corporation

from Hold to Buy and established a $52 price target. Stifel Nicolaus commented, "We estimate that the just announced $600mm of build-to-suit development and $500mm of in process development and re-development at a 7% cash and 8% GAAP yield generates; 1) roughly $0.12-0.15/share annually of incremental FFO, 2) will raise our implied cap rate at $48/sh by roughly 30 bps to 5.8% from 5.5%, and 3) creates roughly $3.00/share in value once stabilized." Kilroy Realty Corporation closed at $47.12 on Friday.