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Boston Properties (BXP)
NYSE:BXP
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Boston Properties (BXP) AI Stock Analysis

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BXP

Boston Properties

(NYSE:BXP)

Rating:62Neutral
Price Target:
$74.00
â–²(2.05% Upside)
Boston Properties' overall score is driven by strong earnings call performance and operational efficiency. However, high leverage, negative net income, and overvaluation weigh heavily on the score. The positive earnings outlook and robust cash flows provide some balance against these risks.
Positive Factors
Earnings
BXP reported 2Q25 FFOps of $1.71, beating consensus and guidance midpoint.
Leasing Activity
BXP has signed 1 msf leases QTD through mid-June, supporting confidence in growing near-term occupancy and earnings.
Negative Factors
Capital Allocation
Concerns remain about BXP's capital allocation and higher leverage than desired, which complicates the investment story.
Occupancy
There are significant move-outs to address in the coming years, which presents challenges for maintaining occupancy levels.

Boston Properties (BXP) vs. SPDR S&P 500 ETF (SPY)

Boston Properties 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 MoneyBoston Properties generates revenue primarily through leasing office and retail space to tenants, which constitutes the bulk of its income. The company enters long-term leases with its tenants, providing a stable and predictable cash flow. Additionally, BXP earns income from property management services, development fees from its projects, and asset sales, which can contribute to significant gains. The company also engages in strategic partnerships and joint ventures for development projects, enhancing its growth potential and financial returns. Factors such as favorable market conditions in urban real estate, tenant demand in its core markets, and the company's ability to maintain high occupancy rates are critical to its earnings.

Boston Properties Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call for BXP highlighted strong financial performance, improved leasing activity, and significant progress on the 343 Madison Avenue project, suggesting a positive outlook for the company. However, there were challenges related to occupancy and interest expenses. Overall, the positive aspects of the call outweigh the negatives.
Q2-2025 Updates
Positive Updates
FFO Performance Exceeds Expectations
BXP's FFO per share was $0.05 above their forecast and $0.04 above market consensus for Q2 2025, driven by improved operations. The company also raised the midpoint of its earnings guidance for the full year 2025 by $0.02.
Leasing Activity Increase
BXP completed over 1.1 million square feet of leasing in Q2, bringing the total for 2025 to 2.2 million square feet. The leasing volume for the last four quarters was 18% higher than the previous four quarters.
Strong Office Market Recovery
Office sales volume increased materially in Q2 to $14.2 billion, up 80% from the prior quarter and 125% from the same quarter last year. Financing is increasingly available at tightening spreads for higher-quality office assets.
343 Madison Avenue Project Progress
BXP is proceeding with the 343 Madison Avenue project, with an anchor client committing to approximately 30% of the building. The company is buying out its 45% equity joint venture partner.
Negative Updates
Occupancy Challenges
BXP's total portfolio occupancy for Q2 ended at 86.4%, a decline of 50 basis points, primarily due to the expiration of Biogen's 355,000 square foot lease.
Interest Expense and Dividend Considerations
BXP increased its assumption for interest expense on floating rate debt due to fewer interest rate cuts by the Federal Reserve. The company also mentioned the possibility of resetting the dividend as a funding source.
Company Guidance
During the Q2 2025 earnings call, BXP provided guidance reflecting a strong performance and an optimistic outlook for the year. The company reported a Funds from Operations (FFO) per share of $1.71, which exceeded both their forecast and market consensus by $0.05 and $0.04, respectively. This was largely attributed to improved operations, resulting in an upward revision of the full-year 2025 earnings guidance midpoint by $0.02. BXP completed over 1.1 million square feet of leasing during the quarter, contributing to a total of 2.2 million square feet for the year, with leasing volumes being 18% higher than the prior four quarters. The company projects a 7.5% to 8% yield on cost for the 343 Madison Avenue development, which is expected to deliver in late 2029. BXP's same-property NOI is anticipated to grow by approximately 0.25% for 2025, with cash NOI increasing by 1.25%. The company also discussed plans for $600 million in asset sales, which are not expected to be dilutive to FFO due to the significant portion of non-income-producing assets involved.

Boston Properties Financial Statement Overview

Summary
Boston Properties shows operational efficiency with strong gross and EBIT margins. However, negative net income and a high debt-to-equity ratio point to financial challenges. Robust cash flow is a positive, but the decrease in free cash flow is concerning.
Income Statement
65
Positive
The income statement shows mixed results. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 47.8%, which is a healthy level of profitability. However, the net profit margin is negative at -0.1%, indicating challenges in converting revenue to profit. Revenue growth has been modest, with a 0.8% increase from the previous year. EBIT and EBITDA margins are strong at 36.4% and 53.2% respectively, demonstrating operational efficiency, but the negative net income presents a concern.
Balance Sheet
55
Neutral
The balance sheet highlights some areas of concern. The debt-to-equity ratio is high at approximately 3.09, indicating significant leverage which could pose risks if market conditions change. The return on equity is negative at -0.08%, reflecting the negative net income. The equity ratio stands at 20.9%, suggesting a decent proportion of equity financing, but the overall high level of debt is a notable risk factor.
Cash Flow
70
Positive
Cash flow analysis shows a strong operational cash flow to net income ratio of approximately -234.0, indicating robust cash generation despite negative net income. The free cash flow has decreased by about 24.0% compared to the previous year. The free cash flow to net income ratio is negative, but the company maintains positive free cash flow, which is essential for ongoing operations and investments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.43B3.41B3.27B3.11B2.89B2.77B
Gross Profit1.64B1.18B2.05B1.96B1.84B1.72B
EBITDA1.83B1.91B1.87B1.77B1.69B2.14B
Net Income-4.43M14.27M190.22M583.45M84.41M525.74M
Balance Sheet
Total Assets25.44B26.08B26.03B24.21B22.36B22.86B
Cash, Cash Equivalents and Short-Term Investments398.13M1.25B1.53B690.33M452.69M1.67B
Total Debt16.44B16.98B16.62B14.69B13.35B13.49B
Total Liabilities17.59B18.14B17.83B15.84B14.31B14.51B
Stockholders Equity5.32B5.41B5.88B6.13B5.83B6.00B
Cash Flow
Free Cash Flow1.15B1.23B1.30B884.31M1.12B1.15B
Operating Cash Flow1.25B1.23B1.30B1.28B1.13B1.16B
Investing Cash Flow-1.19B-1.24B-1.19B-1.60B-1.04B-613.72M
Financing Cash Flow-341.93M-274.48M767.92M556.06M-1.31B484.32M

Boston Properties Technical Analysis

Technical Analysis Sentiment
Positive
Last Price72.51
Price Trends
50DMA
68.11
Positive
100DMA
66.88
Positive
200DMA
68.71
Positive
Market Momentum
MACD
0.96
Negative
RSI
67.78
Neutral
STOCH
97.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BXP, the sentiment is Positive. The current price of 72.51 is above the 20-day moving average (MA) of 66.87, above the 50-day MA of 68.11, and above the 200-day MA of 68.71, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 67.78 is Neutral, neither overbought nor oversold. The STOCH value of 97.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BXP.

Boston Properties Risk Analysis

Boston Properties disclosed 48 risk factors in its most recent earnings report. Boston Properties 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

Boston Properties Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$4.97B22.574.06%5.19%2.26%10.15%
69
Neutral
$4.95B79.881.30%4.34%13.07%-4.94%
65
Neutral
$7.94B9.4114.93%1.95%1.38%4370.96%
62
Neutral
$12.62B3,662.120.07%5.41%3.24%-97.73%
60
Neutral
$14.26B102.63-0.12%6.38%3.12%-116.29%
58
Neutral
$4.32B663.10-0.37%5.39%15.25%79.18%
53
Neutral
$1.21B2.92-5.63%5.82%-3.27%-79.34%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BXP
Boston Properties
72.51
2.13
3.03%
ARE
Alexandria Equities
82.44
-29.49
-26.35%
CUZ
Cousins Properties
29.49
2.61
9.71%
KRC
Kilroy Realty
41.59
8.38
25.23%
SLG
SL Green Realty
56.89
-4.41
-7.19%
VNO
Vornado Realty
38.03
5.06
15.35%

Boston Properties Corporate Events

Executive/Board ChangesShareholder Meetings
Boston Properties Holds 2025 Annual Stockholders Meeting
Neutral
May 20, 2025

On May 20, 2025, Boston Properties, Inc. held its 2025 Annual Meeting of Stockholders, where several key decisions were made. The stockholders elected a slate of directors to the Board, approved a non-binding advisory vote on executive compensation, and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These actions reflect the company’s ongoing governance practices and commitment to transparency in financial reporting.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Boston Properties Holds 2025 Annual Stockholders Meeting
Neutral
May 20, 2025

On May 20, 2025, BXP, Inc., the sole general partner of Boston Properties Limited Partnership, conducted its 2025 Annual Meeting of Stockholders. During the meeting, the stockholders elected several directors to the Board, approved a non-binding advisory vote on executive compensation, and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and financial strategies, potentially impacting its operational and financial transparency.

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.Date of analysis: Aug 23, 2025