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Boston Properties (BXP)
:BXP
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Boston Properties
(NYSE:BXP)
Rating:57Neutral
Price Target:
$69.00
â–²(4.39% Upside)
Positive Factors
Development and Leasing
BXP has signed 1 msf leases QTD through mid-June, supporting confidence in growing near-term occupancy and earnings.
Financial Performance
BXP reported FFOps of $1.71, beating consensus and guidance midpoint.
Portfolio Strategy
BXP is focusing on moving its portfolio further upscale, through developments and select asset sales, while de-emphasizing the suburbs.
Negative Factors
Cash Leasing Spreads
Cash leasing spreads turned negative, attributed to timing of leases signed in NYC.
Debt and Leverage
Concerns remain about BXP's capital allocation and higher leverage than desired, which complicates the investment story.
Occupancy Challenges
Occupancy decreased to 86.4%, driven by a notable drop in Suburban Boston.
Boston Properties (BXP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.50B
Dividend Yield6.07%
Average Volume (3M)1.66M
Price to Earnings (P/E)3320.2
Beta (1Y)1.14
Revenue Growth3.24%
EPS Growth-97.73%
CountryUS
Employees816
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.56
Shares Outstanding158,324,600
10 Day Avg. Volume2,007,278
30 Day Avg. Volume1,660,205
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.55
Enterprise Value/Revenue8.55
Enterprise Value/Gross Profit17.89
Enterprise Value/Ebitda16.06
Forecast
1Y Price Target
$77.82Price Target Upside17.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Boston Properties Business Overview & Revenue Model
Company DescriptionBoston Properties (BXP) is a leading real estate investment trust (REIT) in the United States, specializing in the ownership, management, and development of Class A office properties. Headquartered in Boston, Massachusetts, the company operates in major markets such as Boston, Los Angeles, New York, San Francisco, and Washington, D.C. With a focus on high-quality office spaces, Boston Properties serves a diverse range of tenants, including technology companies, financial institutions, and law firms.
How the Company Makes MoneyBoston Properties generates revenue primarily through leasing office space to tenants across its portfolio of high-quality commercial properties. The company earns rental income from long-term leases and often includes provisions for escalating rent over time, which helps to mitigate inflationary pressures. Additionally, Boston Properties may generate revenue through property management services and development fees. The company also engages in the development and redevelopment of properties, which can lead to capital appreciation and increased rental income. Strategic partnerships and joint ventures with other real estate entities may further enhance its revenue streams by sharing risks and leveraging combined expertise.
Boston Properties Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: -6.15%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlights BXP's strong financial and operational performance, with significant leasing activity, positive office market trends, and strategic capital allocations. However, some challenges remain, including occupancy declines and higher interest expenses.Q2-2025 Updates
Positive Updates
FFO Performance Exceeds Expectations
BXP reported funds from operations (FFO) of $1.71 per share for Q2 2025, which is $0.05 above their forecast and $0.04 above market consensus.
Significant Leasing Activity
BXP completed over 1.1 million square feet of leasing in Q2 2025, bringing the total for the year to 2.2 million square feet. This is part of a larger trend of 5.7 million square feet leased over the past four quarters, an 18% increase from the previous four quarters.
Positive Return to Office Trends
Fortune 100 companies fully in the office increased from 5% to 54% over the past two years, enhancing leasing activity.
Strong Demand in Premier Office Markets
Premier Workplace leasing and capital markets continue to recover, with the premier segment outperforming the broader office market significantly.
Strategic Capital Allocation at 343 Madison Avenue
BXP is proceeding with the development of 343 Madison Avenue, with strong pre-leasing activity and a projected stabilized cash yield on cost of approximately 7.5% to 8%.
Asset Sales and Reentitlement Strategy
BXP plans to sell 10 non-income producing assets and explore sales of income-producing properties, potentially generating $600 million in net proceeds over two years.
Operational Efficiency
BXP achieved $0.01 per share savings in G&A expenses due to lower compensation and professional fees.
Negative Updates
Occupancy Rate Decline
BXP's total portfolio occupancy ended at 86.4%, a decline of 50 basis points or 240,000 square feet due to expirations and terminations.
Interest Expense Increase
BXP is increasing its assumption for interest expense on floating rate debt due to fewer expected rate cuts by the Federal Reserve, resulting in $0.02 per share higher expense.
Challenges in Lab Space Leasing
Biotech demand growth with extensive lab uses continues to be light, impacting leasing activity in lab spaces.
Company Guidance
During the Q2 2025 earnings call, BXP provided guidance highlighting strong performance and optimistic projections for the year. The company's FFO per share exceeded forecasts by $0.05 and market consensus by $0.04, driven by improved operations. Consequently, BXP raised the midpoint of its full-year earnings guidance by $0.02 per share. Leasing activity was robust, with 1.1 million square feet leased in the quarter, totaling 2.2 million square feet for 2025, and a 5.7 million square feet leasing volume over the last four quarters, marking an 18% increase from the previous year. BXP's premier workplaces outperformed the broader market, with direct vacancy rates 38% lower and asking rents 50% higher. The real estate private equity capital markets saw office sales volume increase to $14.2 billion, up 80% from the prior quarter. Development plans for the 343 Madison Avenue project were announced, including a letter of intent with an anchor client and plans to buy out a 45% equity partner, with the project expected to deliver a stabilized cash yield of 7.5% to 8%. Overall, BXP anticipates gaining occupancy, revenue, and FFO in the coming years, supported by development deliveries and potential acquisitions.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
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.65
Positive
Balance Sheet
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.55
Neutral
Cash Flow
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.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.43B | 3.41B | 3.27B | 3.11B | 2.89B | 2.77B |
| Gross Profit | 1.64B | 1.18B | 2.05B | 1.96B | 1.84B | 1.72B |
| EBITDA | 1.83B | 1.91B | 1.87B | 1.77B | 1.69B | 2.14B |
| Net Income | -4.43M | 14.27M | 190.22M | 583.45M | 84.41M | 525.74M |
Balance Sheet | ||||||
| Total Assets | 25.44B | 26.08B | 26.03B | 24.21B | 22.36B | 22.86B |
| Cash, Cash Equivalents and Short-Term Investments | 398.13M | 1.25B | 1.53B | 690.33M | 452.69M | 1.67B |
| Total Debt | 16.44B | 16.98B | 16.62B | 14.69B | 13.35B | 13.49B |
| Total Liabilities | 17.59B | 18.14B | 17.83B | 15.84B | 14.31B | 14.51B |
| Stockholders Equity | 5.32B | 5.41B | 5.88B | 6.13B | 5.83B | 6.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.15B | 1.23B | 1.30B | 884.31M | 1.12B | 1.15B |
| Operating Cash Flow | 1.25B | 1.23B | 1.30B | 1.28B | 1.13B | 1.16B |
| Investing Cash Flow | -1.19B | -1.24B | -1.19B | -1.60B | -1.04B | -613.72M |
| Financing Cash Flow | -341.93M | -274.48M | 767.92M | 556.06M | -1.31B | 484.32M |
Boston Properties Technical Analysis
Negative
66.10
Price Trends
69.01
Negative
66.51
Negative
70.07
Negative
Market Momentum
-0.68
Positive
40.00
Neutral
15.14
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 66.1 is below the 20-day moving average (MA) of 69.20, below the 50-day MA of 69.01, and below the 200-day MA of 70.07, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 15.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.52B | 20.53 | 4.06% | 5.91% | 2.26% | 10.15% | |
70 Outperform | $13.52B | 102.63 | -0.12% | 6.92% | 3.12% | -116.29% | |
69 Neutral | $7.74B | 9.18 | 14.93% | 1.97% | 0.63% | 258.59% | |
60 Neutral | $4.48B | 72.32 | 1.30% | 4.82% | 13.07% | -4.94% | |
58 Neutral | $4.22B | 663.10 | -0.35% | 5.49% | 14.21% | 79.46% | |
57 Neutral | $11.50B | 3,320.20 | 0.07% | 6.07% | 3.24% | -97.73% | |
53 Neutral | $1.19B | 3.49 | -2.19% | 6.01% | -2.24% | -167.40% |
* Real Estate Sector Average
Performance Comparison
BXP
Boston Properties
66.10
1.00
1.54%
ARE
Alexandria Equities
78.14
-28.92
-27.01%
CUZ
Cousins Properties
26.70
0.64
2.46%
KRC
Kilroy Realty
37.82
6.53
20.87%
SLG
SL Green Realty
55.47
-3.92
-6.60%
VNO
Vornado Realty
37.08
6.08
19.61%
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.
The most recent analyst rating on (BXP) stock is a Sell with a $72.00 price target. To see the full list of analyst forecasts on Boston Properties stock, see the BXP Stock Forecast page.
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.
The most recent analyst rating on (BXP) stock is a Sell with a $72.00 price target. To see the full list of analyst forecasts on Boston Properties 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.