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BXP (BXP)
NYSE:BXP
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BXP
(NYSE:BXP)
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Rating:52Neutral
Price Target:
$65.00
▲(1.99% Upside)
The score is held back mainly by financial risk (high leverage and the latest-period cash-flow red flag) and bearish technicals. These are partially offset by a supportive earnings-call backdrop (leasing strength, modestly higher guidance, refinancing progress) and a high dividend yield, though the high P/E limits valuation upside.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for BXP's office spaces, enhancing its market position and supporting long-term financial stability.
Leasing Performance
Strong leasing activity reflects BXP's competitive advantage in high-demand urban markets, ensuring steady cash flow and occupancy rates.
Leadership Continuity
Extending the CEO's tenure ensures strategic continuity and leadership stability, crucial for executing long-term growth plans.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting BXP's ability to invest in future growth opportunities.
Negative Profitability
Negative profitability highlights operational inefficiencies, which can hinder BXP's ability to reinvest in its business and maintain competitive positioning.
Decline in Free Cash Flow
A significant decline in free cash flow growth may strain BXP's ability to fund operations and investments, impacting long-term sustainability.
BXP (BXP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.10B
Dividend Yield5.26%
Average Volume (3M)1.58M
Price to Earnings (P/E)36.0
Beta (1Y)1.00
Revenue Growth2.54%
EPS Growth-155.17%
CountryUS
Employees816
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)1.56
Shares Outstanding158,468,690
10 Day Avg. Volume2,376,482
30 Day Avg. Volume1,581,880
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.09
Price to Sales (P/S)3.08
P/FCF Ratio0.00
Enterprise Value/Market Cap2.33
Enterprise Value/Revenue7.44
Enterprise Value/Gross Profit12.27
Enterprise Value/Ebitda13.34
Forecast
1Y Price Target
$76.27Price Target Upside19.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)1.76
Revenue Forecast (FY)$3.46B
BXP Business Overview & Revenue Model
Company DescriptionBoston 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 MoneyBXP generates revenue primarily through leasing office spaces to a diverse range of tenants across various industries. The company enters into long-term leases with its tenants, which provide a stable and recurring source of rental income. Additionally, BXP may earn revenue from ancillary services, such as property management fees and leasing commissions. The company's strategic focus on high-demand urban markets allows it to command premium rental rates, thus enhancing its income potential. BXP also engages in real estate development projects, where it may realize profits from the sale or leasing of newly developed properties. Partnerships with local governments and other entities for urban redevelopment projects can also contribute to its revenue streams, particularly in areas where BXP is actively involved in enhancing community infrastructure.
BXP Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presents multiple strong operating and strategic positives — robust leasing volumes, a constructive development pipeline with high projected yields, significant progress on a stated $1.9B disposition program, improved liquidity and expected interest cost reductions — which together underpin 2026 FFO guidance that resumes growth. Offsetting items include short-term FFO dilution and NOI reduction from asset sales, elevated leasing/concession costs in some markets (notably parts of the West Coast), a modest Q4 FFO miss driven by higher G&A and tenant reserves, and near-term muted cash same‑property NOI growth. On balance, the company has clear execution on its plan and constructive forward indicators despite near-term noise and regional variability.Q4-2025 Updates
Positive Updates
Strong Leasing Volume and Pipeline
Q4 leasing of ~1.8 million sq ft and full-year 2025 leasing of >5.5 million sq ft (well above targets). Q4 in-service occupancy rose ~70 bps; year-end 2025 in-service occupancy 86.7% with a plan to reach ~89% by year-end 2026 (≈230 bps increase). Started 2026 with ~1.243 million sq ft of executed leases not yet commenced and expect ~4.0 million sq ft of leasing in 2026. Current negotiations ~1.1–1.2 million sq ft and a discussion pipeline ~1.3 million sq ft; conversion on leases in negotiation ~95%.
Development Pipeline and High-Yield Starts
Eight active development projects totaling ~3.5 million sq ft with BXP investment of ~$3.7 billion. Office developments forecasted to generate >8% unleveraged cash yield on delivery (e.g., 2100 M Street: $55M site purchase, 15-year lease for 75% of 320k sq ft; total dev budget ~$380M, forecast yield >8%). 290 Binney (573k sq ft life science) 100% leased to AstraZeneca, BXP share delivering June 2026 with ~ $500M share investment.
Material Asset Disposition Progress
Investor Day target: $1.9B of dispositions by 2028. To date closed 12 assets for net proceeds >$1.0B ($850M in 2025 and ~$180M in January), 21 transactions closed or well underway with estimated net proceeds ≈$1.25B. Dispositions estimated for 2026 aggregate >$400M. Q4 gains on sale were $208M on $890M of sales; net proceeds from sales ~$800M increased liquidity.
Balance Sheet Liquidity and Deleveraging Actions
Company holds ~$1.5B cash & equivalents. Proceeds being used to reduce debt and to redeem a $1.0B bond maturing this year. Management expects net interest expense to decline $38M–$48M in 2026 versus 2025 and consolidated net interest expense guidance of $581M–$593M for 2026.
2026 FFO Guidance Indicates Return to Growth
2026 FFO guidance of $6.88–$7.04 per share (midpoint $6.96), +$0.11 vs. 2025. Midpoint drivers: same-property NOI growth $0.19/sh, development contribution $0.27/sh, lower interest expense $0.24/sh; partially offset by sales dilution (-$0.41/sh) and increased G&A (-$0.09/sh).
Premier Workplace Market Outperformance
Premier workplace direct vacancy in BXP’s five CBD markets at 11.6%, ~560 bps below the broader market; asking rents for premier workplaces >50% premium vs broader market. Over past 3 years, net absorption for premier workplaces +11.4M sq ft vs -8M sq ft for the balance of market (~19.4M sq ft spread).
Notable Development Leasing Wins
Preleased premier workplace development examples: Sidley Austin committed to 75% of a to‑be-built 320k sq ft at 2100 M Street (D.C.) on a 15‑year lease; 343 Madison already committed to nearly 50% of construction costs with a 29% lease to Starr and another ~16% under LOI, derisking the project and targeting a 7.5%–8% stabilized unleveraged cash return on delivery (2029).
Improving Transaction and Capital Markets
Private office transaction volume improved: significant office sales in Q4 totaled $17.3B, +43% QoQ and +21% YoY. CMBS and debt markets showing tightening spreads and greater availability, supporting dispositions and recapitalizations.
Negative Updates
Q4 FFO Miss and Quarterly Variance Drivers
Q4 FFO of $1.76 per share missed the midpoint of guidance by $0.05 primarily due to higher-than-expected G&A and $6M (~$0.03/sh) of noncash credit reserves for accrued rent for two specific tenants. Q4 G&A was ~$3.5M (~$0.02/sh) above projection.
Short-Term NOI Dilution from Asset Sales
Dispositions reduce portfolio NOI: expected reduction in NOI from 2025→2026 of $70M–$74M with FFO dilution of $0.06–$0.08 per share in 2026 associated with executed/anticipated sales (consistent with Investor Day guidance).
Elevated Concessions and Leasing Costs in Some Markets
Q4 blended leasing transaction costs were ~$128/sq ft (above typical historical range ~$85–$100/sq ft). Free rent guidance for 2026 is $130M–$150M (higher than 2025), and concession levels remain particularly elevated on the West Coast; West Coast cash mark-to-market for leases signed was down ~10% in the quarter.
Regional Variability and Market Weaknesses
West Coast mark-to-market declines (example: West coast -10% in quarter). Life science demand is uneven: BXP exited West Coast life science holdings due to high vacancy and low net absorption, while remaining committed to Boston life science exposure. Some suburban assets sold at higher cap rates (e.g., 140 Kendrick at 9.5%) reflecting less strategic/suburban market weakness.
G&A and Compensation-Related Expense Increase
2026 G&A guidance $176M–$183M, an increase of $13M–$20M (+$0.09/sh at midpoint). Approximately $0.07/sh of the increase is noncash amortization from a new outperformance stock-based plan (requires significant stock price appreciation to pay out).
Near-Term Cash Same-Property NOI Growth Muted
Cash same-property NOI growth guidance for 2026 is low at 0%–0.5% (although GAAP same-property NOI growth is 1.25%–2.25%), in part because the company is trading GAAP rent for near-term free rent/tenant buildout concessions to secure long-term leases and accommodating relocations/terminations.
Tenant Credit and Collection Reserves
Recorded credit reserves (~$6M / ~$0.03/sh) in Q4 for accrued rent of two tenants (a 60k sq ft education services firm in D.C. and a 10k sq ft restaurant in NYC). While the annual rental obligation at BXP's share is small (~$4M annually), it highlights tenant-specific credit risk and collection uncertainty.
Company Guidance
BXP introduced 2026 FFO guidance of $6.88–$7.04 per share (midpoint $6.96, +$0.11 vs. 2025 FFO of $6.85), driven by a projected same‑property NOI gain of 1.25%–2.25% (on $1.88B same‑property NOI, ~+$33M or $0.19 at midpoint), occupancy rising from 86.7% YE‑2025 to ~89% by YE‑2026 (average 87.5%–88.5%), cash same‑property NOI +0%–0.5%, termination income of $11M–$15M, and incremental development NOI of $44M–$52M (midpoint ~$0.27 per share) offset by ~$70M–$74M of NOI loss from asset sales and $13M NOI loss from properties taken out of service (≈$0.07/share). Guidance assumes ~$360M of 2026 dispositions (net proceeds ≈$230M), resulting in FFO dilution of $0.06–$0.08, lower net interest expense (consolidated interest down $25M–$37M; total net interest expense $581M–$593M), expected consolidated interest savings of $38M–$48M vs. 2025, JV interest at share of $60M–$63M (JV interest savings $11M–$14M), G&A of $176M–$183M (up $13M–$20M, including ~$0.07/share noncash stock‑based amortization), fee income $30M–$34M (down $3M–$7M), free rent $130M–$150M, leasing costs roughly $220M–$250M (TIA/LCs averaging ≈$100/sqft going forward), CapEx $100M–$125M, and balance sheet positioning with ~$1.5B cash on hand and a planned refinancing of a $1B bond (current 10‑yr pricing ~5.5%–5.75%).BXP Financial Statement Overview
Summary
Revenue momentum has improved and operating profitability is solid, but the overall profile is constrained by elevated leverage (debt ~3x equity), volatile net income, and a major cash-flow quality concern in the latest annual period (operating cash flow and free cash flow reported at zero).Income Statement
Revenue has recovered and accelerated, with 2025 revenue up sharply versus 2024, following steady growth in 2021–2024. Core profitability looks solid at the operating level (strong gross profit and EBIT dollars), but bottom-line results are volatile: net income fell dramatically in 2024 and only modestly rebounded in 2025 versus stronger profitability in 2022–2023. Overall, the business shows improving top-line momentum, but earnings consistency remains a key weakness.62
Positive
Balance Sheet
Leverage is elevated for the sector: debt is roughly three times equity in 2023–2024, and total debt remains very large relative to the equity base. Equity has trended down from 2022 to 2025, while total assets have been broadly flat, limiting balance-sheet flexibility. Returns on equity have been weak in recent years (especially 2024), reflecting both pressured earnings and a leveraged capital structure.48
Neutral
Cash Flow
Cash generation was healthy in 2020–2024 with consistent operating cash flow and positive free cash flow, but free cash flow weakened in 2024 and the 2025 annual report shows operating cash flow and free cash flow at zero (which is a major red flag for quality/availability of cash flow in the latest period). Where cash flow data is available, operating cash flow generally covered accounting earnings, but the latest period’s cash flow profile materially lowers confidence and increases risk.41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.48B | 3.41B | 3.27B | 3.11B | 2.89B |
| Gross Profit | 2.11B | 2.09B | 2.06B | 1.97B | 1.85B |
| EBITDA | 1.94B | 1.62B | 1.70B | 2.21B | 1.78B |
| Net Income | 276.80M | 14.27M | 190.22M | 848.95M | 505.19M |
Balance Sheet | |||||
| Total Assets | 26.17B | 26.08B | 26.03B | 24.21B | 22.37B |
| Cash, Cash Equivalents and Short-Term Investments | 1.48B | 1.25B | 1.53B | 690.33M | 452.69M |
| Total Debt | 17.36B | 17.32B | 16.62B | 14.69B | 13.35B |
| Total Liabilities | 18.48B | 18.14B | 17.83B | 15.84B | 14.32B |
| Stockholders Equity | 5.15B | 5.41B | 5.89B | 6.13B | 5.84B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 786.52M | 819.17M | 884.31M | 1.12B |
| Operating Cash Flow | 0.00 | 1.23B | 1.30B | 1.28B | 1.13B |
| Investing Cash Flow | 0.00 | -1.24B | -1.19B | -1.60B | -1.04B |
| Financing Cash Flow | -1.34B | -274.48M | 767.92M | 556.06M | -1.31B |
BXP Technical Analysis
Negative
63.73
Price Trends
68.22
Negative
70.48
Negative
68.92
Negative
Market Momentum
-1.34
Positive
38.53
Neutral
15.72
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 63.73 is below the 20-day moving average (MA) of 65.58, below the 50-day MA of 68.22, and below the 200-day MA of 68.92, indicating a bearish trend. The MACD of -1.34 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 15.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BXP.
BXP Risk Analysis
BXP disclosed 48 risk factors in its most recent earnings report. BXP reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BXP Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.09B | 12.65 | 5.94% | 5.75% | 0.77% | 62.58% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $4.37B | 73.24 | 1.26% | 5.08% | 16.38% | 3.60% | |
59 Neutral | $9.59B | ― | -8.62% | 10.90% | -0.76% | -250.60% | |
58 Neutral | $6.38B | 7.25 | 15.97% | 2.24% | 2.41% | ― | |
52 Neutral | $11.10B | 36.02 | 5.24% | 5.26% | 2.54% | -155.17% | |
51 Neutral | $3.22B | ― | -2.24% | 6.95% | 8.60% | ― |
* Real Estate Sector Average
BXP
BXP
63.73
-5.94
-8.52%
ARE
Alexandria Equities
55.31
-36.80
-39.95%
CUZ
Cousins Properties
25.99
-3.31
-11.30%
KRC
Kilroy Realty
34.28
-1.26
-3.55%
SLG
SL Green Realty
42.48
-21.30
-33.40%
VNO
Vornado Realty
30.57
-11.71
-27.70%
BXP Corporate Events
Business Operations and StrategyExecutive/Board Changes
BXP Extends CEO Tenure and Launches 2025 Outperformance Plan
Positive
Dec 22, 2025
On December 22, 2025, BXP extended and amended the employment agreement of Chief Executive Officer and Chairman Owen D. Thomas, committing him to remain in the role through December 31, 2029, a move designed to ensure leadership continuity and align his tenure with the company’s multi-year strategic action plan introduced in September 2025; the agreement preserves his existing compensation structure while formalizing retirement-related equity treatment and maintaining robust change-in-control and non-compete provisions. On the same date, the board approved a 2025 Outperformance Plan that grants up to 711,864 performance-based LTIP units to Thomas and other senior executives, with vesting tied to both service and ambitious stock price and dividend-adjusted performance thresholds—requiring at least a roughly 30% share price increase before any payout and up to about a 70% gain for maximum awards—intended to tightly link executive pay to shareholder returns; BXP expects to recognize about $32.1 million of related compensation expense over the four-year performance period, including roughly $11.6 million in 2026, a modest earnings headwind that signals a stronger emphasis on performance-driven, shareholder-aligned incentives for top management.
The most recent analyst rating on (BXP) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on BXP stock, see the BXP Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
BXP Extends CEO Contract and Adopts 2025 Incentive Plan
Positive
Dec 22, 2025
On December 22, 2025, BXP extended the employment agreement of Chief Executive Officer and Chairman Owen D. Thomas by three years to December 31, 2029, largely preserving his existing compensation structure while reinforcing his role in executing the company’s multi-year strategic action plan. The new agreement clarifies severance, retirement eligibility and non-compete terms, and explicitly ties Thomas’s continued service to the value-creation horizon of the plan, signaling the board’s emphasis on leadership continuity and long-term strategy execution. On the same date, BXP’s board approved a 2025 Outperformance Plan that grants up to 711,864 performance-based LTIP units to Thomas and other senior executives, payable only if dividend-adjusted share price gains reach at least 30% and up to about 70% over a four-year performance period ending December 22, 2029, with strict service-based vesting and no retirement-related acceleration. The company expects to recognize approximately $32.1 million of compensation expense from these awards over the four-year period, including about $11.6 million, or $0.07 per share, in 2026, highlighting a deliberate shift to performance-linked equity that tightens alignment between management pay and shareholder returns while modestly increasing reported compensation costs over the life of the plan.
The most recent analyst rating on (BXP) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on BXP stock, see the BXP Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.