UPDATE: KeyBanc Upgrades Kilroy Realty to Hold on Pipeline, Valuation

KeyBanc upgraded Kilroy Realty Corporation

from Underweight to Hold. KeyBanc noted, "We are upgrading KRC to HOLD from UNDERWEIGHT. Our UNDERWEIGHT rating had been largely valuation driven and reflective of our mean reversion thesis in 2012; we also had some concerns regarding the scope of the growing development pipeline. However, the recent 445ksf lease with Salesforce.com at the 350 Mission development project in San Francisco and the $315 million build-to-suit deal with LinkedIn in Mountainview, Calif., demonstrated the persistent demand for office space in northern California and also alleviated any near-term development risk. We expect that demand for office space will remain strong on the West Coast as technology and media firms continue to grow." Kilroy Realty closed at $48.84 on Wednesday.