1Q26 Review - The West Coast Office Recovery Continues

Research evidence excerpt

1Q26 Review - The West Coast Office Recovery Continues

USA | REITs EquityMayResearch12, 2026

KEY STOCKS FEATURED INCLUDE:1Q26 Review - The West Coast Office Recovery

TICKER RATING PRICE TARGETContinues

DEI HOLD $13.00

SF posted its 3rd straight qtr of pos net absorption (leasing >10% vs pre-COVID HPP HOLD $12.00

avgs), Silicon Valley notched its 6th cons qtr of occ growth, & Seattle saw back- KRC BUY $38.00

to-back qtrs of pos absorption; LA remains challenged. Demand is building,

materializing unevenly across portfolios: HPP posted a 3rd cons qtr of occ

gains; DEI sees early signs of a trough but isn't ready to call bottom; KRC occ

KEY CHANGES INCLUDE:

dipped as KOP2 entered the pool alongside a heavier 1Q expiration sched.

TICKER RATING PRICE TARGET

DEI DEI HOLD $13.00 ($9.00)

Exhibit 1 - DEI Leasing Volume Exhibit 2 - DEI Leasing Costs HPP HOLD $12.00 ($6.00)

500 461 $8 KRC BUY $38.00 ($30.00)

450 $7 $6.30

400 $6

300 $5

250 $4

200 $3

150 $2 1Q26 Quick Takes 100

50 $1

0 $0 DEI - FFO Beats, Guide Maintained; Record

3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 3Q21 1Q22 3Q22 1Q23 3Q23 1Q24 3Q24 1Q25 3Q25 1Q26

New Leasing Volume (K SF) Leasing Costs PSF New Leasing Qtr

. .

Source: Jefferies, Company Filings Source: Jefferies, Company Filings

HPP - FFO Beat & Quixote Wind Down SpurExhibit 3 - DEI In-Service Office Occupancy Exhibit 4 - DEI Leasing Spreads

95% 50% FY26 Guidance Raise

40%

90%

30% KRC - FFO/sh Beats; FY26 Guidance

85% 20%

Raised; Strong Leasing Volume 80% 77.5% 10% 5.3%

0%

75% -10%

70% -20% -7.7%

1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 3Q21 1Q22 3Q22 1Q23 3Q23 1Q24 3Q24 1Q25 3Q25 1Q26

Total Office Occupancy Leasing Spreads (Cash) Leasing Spreads (GAAP)

Adjusting Estimates; Maintain Hold: We raise our FY26 FFO/sh estimate +1c to $1.42 (vs.