Bank of America’s recent review of office REITs identifies differing trajectories across firms as the sector continues to adapt to changing workplace patterns. The bank’s analysis emphasizes leasing results, occupancy trends and capital activity as the primary indicators shaping each company’s near-term prospects for 2026.
Cousins Properties (CUZ) - Top-ranked
Bank of America assigns Cousins Properties its highest rating among the group, with a Buy recommendation and a $33 price objective, which the bank says implies roughly 35% upside. The company’s fourth-quarter earnings and its guidance for 2026 were broadly in line with expectations. Cousins reported what the bank described as its second-highest quarter of leasing volume in two years and is carrying a late-stage pipeline of 1.1 million square feet, about 60% of which represents either new leases or expansions.
The REIT’s performance is aided by shifting demand into its Sunbelt footprint, a trend the bank highlights as migration away from West Coast and New York City markets. A recent acquisition of a stabilized building in Charlotte for $318 million was noted for delivering attractive yield metrics - 7.3% on a cash basis and 8.8% on a GAAP basis.
Despite operational momentum, the stock reacted negatively after the earnings release. Bank of America flagged several reasons for the share price weakness: the firm’s guidance excluding the Charlotte acquisition was only modestly above expectations; there remains uncertainty about achieving a 90% occupancy rate by year-end 2026; and there are investor concerns that leverage could increase to support new development activity. In a company update, Cousins reported fourth-quarter 2025 revenue ahead of forecasts while earnings per share fell short of estimates. The company also completed the pricing of a $500 million senior notes offering. Separately, Jefferies raised its price target on the stock to $27.2.
Kilroy Realty (KRC) - Slightly below expectations
Kilroy Realty’s fourth-quarter funds from operations (FFO) per share and guidance for 2026 came in approximately 1% under Street expectations, according to the bank. The company projects essentially flat year-over-year average occupancy, a decline of roughly 20 basis points, with occupancy expected to dip in the first half of 2026 before improving in the second half.
KRC is progressing at its KOP 2 development, now 44% leased after signing 316,000 square feet of leases, which includes a prominent 280,000 square foot commitment from The University of California, San Francisco. That UC San Francisco lease is scheduled to commence in the fourth quarter of 2027. Kilroy’s reported fourth-quarter 2025 results included revenue of $272.2 million, marginally above expectations, while its earnings per share trailed forecasts.
Vornado Realty Trust (VNO) - Mixed indicators
Vornado posted fourth-quarter FFO per share of $0.55, missing consensus by $0.02 and representing a 10% decline from the prior year. The company did, however, show notable leasing activity in New York: 869,000 square feet leased at share in the fourth quarter, up from 542,000 square feet in the third quarter, supporting a 280 basis point increase in New York office leased percentage to 91.4% quarter-over-quarter.
Specific assets drove the improvement - PENN 2 and 330 West 34th Street were singled out - and PENN 2 finished the fourth quarter 80% leased, in line with the company’s target. Vornado also executed buybacks, repurchasing $51 million of stock in the fourth quarter and an additional $29 million after quarter-end, with $91 million of repurchase authorization remaining. The firm reported fourth-quarter 2025 revenue of $453.71 million, which beat analyst expectations, while its earnings per share missed forecasts.
SL Green Realty (SLG) - Neutral view maintained
Bank of America retains a Neutral rating on SL Green with a $54 price objective and kept its 2026 FFO estimate at $4.55 per share after reviewing the company’s recent results. SL Green reported a miss on its fourth-quarter 2025 earnings per share estimate. The note also records that Truist Securities lowered its price target on SL Green to $44.
What the bank’s rankings emphasize
Across the companies covered, Bank of America’s analysis centers on leasing momentum, occupancy trajectories and capital allocation decisions such as acquisitions, debt issuance and buybacks. For Cousins, the combination of Sunbelt demand and a meaningful late-stage leasing pipeline underpins the top ranking, even as execution risks and financing considerations temper near-term investor enthusiasm. For coastal-focused names, results were more mixed with smaller misses to guidance and continued attention on occupancy trends.
Bottom line
Bank of America’s report positions Cousins Properties as the best-equipped REIT among those reviewed to capture growth in 2026, while Kilroy, Vornado and SL Green face a range of operational and market uncertainties. The bank’s assessments reflect a focus on leasing outcomes, occupancy recovery timing and the potential impact of financing decisions on each company’s near-term trajectory.