Boston Properties (BXP) AI Stock Analysis

• Market Cap: $10.55B
• Dividend Yield: 6.46%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 670.8
• Beta (1Y): 1.26
• Revenue Growth: 4.10%
• EPS Growth: -92.47%
• Country: US
• Employees: 816
• Sector: Real Estate
• Sector Strength: 71
• Industry: REIT - Office
• EPS (TTM): 0.09
• Shares Outstanding: 158,323,330
• 10 Day Avg. Volume: 1,890,216
• 30 Day Avg. Volume: 1,654,491
• PEG Ratio: 0.36
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.17
• Price to Cash Flow (P/CF): 7.00
• P/FCF Ratio: 54.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $82.27
• Price Target Upside: 35.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Boston Properties has demonstrated strong revenue growth and operational efficiency, but faces challenges with high valuation metrics and potential cash flow issues. The positive earnings call sentiment is tempered by concerns over interest rates and slight decline in expected earnings for 2025. Overall, the stock has moderate prospects, with strengths in revenue and operational improvements, yet risks in valuation and cash flow persistence.

Positive Factors

Development Projects

The development platform and top-quality portfolio of Boston Properties are key differentiators, especially with projects like the $2B Park Ave development.

Leasing Performance

BXP signed 1.1 million square feet of new and renewal leases during the quarter and has signed 4.85 million square feet of leases over the last 12 months, a 28.0% improvement compared to the prior period.

Valuation

Boston Properties offers an attractive valuation, trading at a favorable multiple compared to its adjusted funds from operations.

Negative Factors

Financial Guidance

The 2025 FFO guidance is notably below consensus, likely driven by higher interest expenses.

Market Challenges

The company’s West Coast markets may be more challenging than others.

Occupancy

Flattish 2025 occupancy at 87.25% is expected, compared to 87.5% previously.

Boston Properties Business Overview & Revenue Model

Company Description

Boston Properties (NYSE:BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company's portfolio totals 51.2 million square feet and 196 properties, including six properties under construction/redevelopment.

How the Company Makes Money

Boston Properties generates revenue primarily through leasing office space to a diverse range of tenants, including large corporations, government agencies, and other entities seeking high-quality office environments in prime urban locations. The company benefits from long-term lease agreements, which provide a stable and predictable income stream. In addition to rental income, BXP may also earn revenue from property management fees and parking facilities associated with its properties. The firm regularly engages in strategic development and redevelopment projects to enhance its portfolio and increase asset value. Additionally, BXP may form joint ventures or partnerships to share costs and risks associated with large-scale developments, further contributing to its financial performance.

Boston Properties Financial Statement Overview

Summary

Boston Properties shows strong revenue growth and improved operational efficiency, evidenced by higher EBIT and EBITDA margins. The elimination of debt reduces financial risk, but the decline in return on equity and concerns about cash flow sustainability require attention.

Income Statement

Boston Properties has shown a strong revenue growth trajectory, increasing from $2.77 billion in 2020 to $3.41 billion in 2024. Gross profit margins are high, with the most recent period seeing almost entire revenue translating to gross profit. Net profit margin has improved to a positive, albeit low, level from the previous year's loss. However, the substantial increase in EBIT and EBITDA margins in 2024 indicates improved operational efficiency. The company’s ability to maintain and enhance these margins will be crucial for sustained profitability.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of approximately 30.5% in 2024, showing a stable capital structure. The absence of total debt in the recent year is noteworthy, considerably reducing financial leverage risk. Previously, the debt-to-equity ratio was high, indicating significant leverage. Return on equity has decreased significantly, signaling that while the company is less leveraged, profitability from an equity standpoint has diminished. Going forward, maintaining a balanced leverage ratio will be key to financial stability.

Cash Flow

Despite fluctuations, Boston Properties has maintained a positive free cash flow over the years, with a notable absence in 2024. Operating cash flow was robust in previous years but is currently not reported, raising potential concerns about cash generation capabilities. The free cash flow to net income ratio in previous years was favorable, indicating efficient cash conversion. Continual monitoring of cash flow sustainability is necessary, especially given the recent negative investing and financing cash flows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.41B	3.27B	3.11B	2.89B	2.77B
	Gross Profit
3.41B	2.05B	1.96B	1.84B	1.72B
	EBIT
3.25B	1.85B	1.02B	976.21M	827.70M
	EBITDA
1.62B	1.87B	1.77B	1.69B	2.14B
	Net Income Common Stockholders
14.27M	190.22M	583.45M	84.41M	525.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.25B	1.53B	690.33M	452.69M	1.67B
	Total Assets
26.08B	26.03B	24.21B	22.36B	22.86B
	Total Debt
16.98B	16.62B	14.69B	13.35B	13.49B
	Net Debt
15.73B	15.09B	14.00B	12.89B	11.82B
	Total Liabilities
18.14B	17.83B	15.84B	14.31B	14.51B
	Stockholders Equity
7.95B	5.88B	6.13B	5.83B	6.00B
Cash Flow		Free Cash Flow
1.23B	1.30B	884.31M	1.12B	1.15B
	Operating Cash Flow
1.23B	1.30B	1.28B	1.13B	1.16B
	Investing Cash Flow
-1.24B	-1.19B	-1.60B	-1.04B	-613.72M
	Financing Cash Flow
-274.48M	767.92M	556.06M	-1.31B	484.32M

Boston Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BXP, the sentiment is Negative. The current price of 60.64 is below the 20-day moving average (MA) of 64.90, below the 50-day MA of 67.10, and below the 200-day MA of 71.65, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 16.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BXP.

Boston Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESRT	68 Neutral	$1.15B	24.23	5.12%	2.04%	3.83%	-5.55%
KRC	65 Neutral	$3.55B	16.82	3.87%	7.26%	0.53%	-1.38%
Sector *	61 Neutral	$4.24B	15.87	-3.65%	12.20%	6.29%	-21.37%
BXP	60 Neutral	$10.55B	670.80	0.23%	6.46%	4.10%	-92.47%
SLG	52 Neutral	$3.75B	631.42	0.71%	6.11%	5.12%	―
VNO	52 Neutral	$12.72B	789.31	1.32%	2.23%	-1.30%	-80.81%
HPP	49 Neutral	$314.98M	―	-11.53%	4.61%	-11.47%	-89.12%