Boston Properties: Strategic Moves and Leasing Growth Signal Long-term Value Creation

Boston Properties (BXP – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst John Kim from BMO Capital maintained a Buy rating on the stock and has a $85.00 price target.

John Kim has given his Buy rating due to a combination of factors that highlight Boston Properties’ potential for recovery and growth. Despite a slight miss on the first quarter’s funds from operations per share, Boston Properties exceeded BMO Research’s expectations and maintained its full-year guidance. The company’s occupancy rates have been declining, but a recovery is anticipated starting in the third quarter of 2025, supported by strong year-to-date leasing activities and manageable lease expirations.
Positive developments contributing to the Buy rating include a significant increase in leasing activity, with a 25% year-over-year growth and a long average lease term. Additionally, Boston Properties has improved its cash leasing spreads, turning them positive, and has successfully formed a joint venture for a major residential and retail project. These strategic moves, along with the company’s commitment to funding preferred equity with a promising internal rate of return, underscore its potential for long-term value creation.

In another report released on April 15, Piper Sandler also maintained a Buy rating on the stock with a $85.00 price target.

Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BXP in relation to earlier this year.