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Persistent Remote Work And Tenant Downsizing Will Undermine Office Assets

Published
02 Sep 24
Updated
28 Sep 25
AnalystConsensusTarget's Fair Value
US$40.93
3.4% undervalued intrinsic discount
28 Sep
US$39.55
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1Y
1.7%
7D
-6.8%

Author's Valuation

US$40.933.4% undervalued intrinsic discount

AnalystConsensusTarget Fair Value

Shared on28 Sep 25
Fair value Increased 2.50%

Analysts modestly raised Kilroy Realty’s price target to $40.93 amid improved leasing momentum in San Francisco but remain cautious due to weak broader office demand and limited occupancy gains outside the Bay Area. Analyst Commentary Bullish analysts noted a healthy improvement in the San Francisco Financial District and SoMa, boosting confidence in Kilroy's ability to address remaining lease expirations through 2027.

Shared on31 Aug 25
Fair value Increased 4.17%

Analysts raised Kilroy Realty’s price target slightly to $39.47, citing Q2 updates but remaining cautious given declining funds from operations, weak tenant retention, sector headwinds, and a lack of strong near-term catalysts. Analyst Commentary Bearish analysts highlight concerns about declining annual funds from operations (projected 7% drop over three years) due to low office tenant retention and elevated office space availability in Kilroy Realty's key West Coast markets.

Shared on08 May 25
Fair value Decreased 1.86%

Shared on30 Apr 25
Fair value Decreased 0.33%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on23 Apr 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on17 Apr 25
Fair value Decreased 1.01%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on09 Apr 25
Fair value Decreased 1.49%

AnalystConsensusTarget has decreased revenue growth from 1.5% to 1.2%.

Shared on02 Apr 25
Fair value Decreased 2.40%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on26 Mar 25
Fair value Decreased 0.96%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on19 Mar 25
Fair value Decreased 3.88%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on11 Mar 25
Fair value Increased 12%

AnalystConsensusTarget has decreased revenue growth from 3.0% to 1.6% and increased future PE multiple from 39.5x to 46.0x.