Education
About Us
Working with TipRanks
Follow Us
Boston Properties (BXP)
NYSE:BXP
Top Page
Boston Properties
(NYSE:BXP)60Neutral
Positive Factors
Leasing performance
Leasing activity was strong with the best quarter in five years, surpassing the full-year leasing target.
Valuation
Boston Properties offers an attractive valuation, trading at a favorable multiple compared to its adjusted funds from operations.
Negative Factors
Financial guidance
Weaker-than-expected guidance for 2025 overshadowed the strong leasing performance in 2024.
Occupancy
Occupancy guidance of 87.25% was lower than expected.
Boston Properties (BXP) vs. S&P 500 (SPY)
Market Cap
$11.77B
Dividend Yield5.79%
Average Volume (3M)1.38M
Price to Earnings (P/E)748.7
Beta (1Y)1.50
Revenue Growth4.10%
EPS Growth-92.47%
CountryUS
Employees836
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.09
Shares Outstanding158,209,600
10 Day Avg. Volume1,556,473
30 Day Avg. Volume1,377,518
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)N/A
Price to Sales (P/S)3.14
Price to Cash Flow (P/CF)7.00
P/FCF Ratio54.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$82.85Price Target Upside20.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Boston Properties Business Overview & Revenue Model
Company DescriptionBoston Properties (BXP) is a leading real estate investment trust (REIT) specializing in the ownership, management, and development of Class A office properties in key gateway cities across the United States. Headquartered in Boston, Massachusetts, the company focuses on high-demand markets such as Boston, Los Angeles, New York, San Francisco, and Washington, D.C. BXP's portfolio includes premier office spaces, along with a selection of retail spaces and residential projects, positioning it as a dominant player in the commercial real estate sector.
How the Company Makes MoneyBoston 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.75
Positive
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.70
Positive
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.60
Neutral
| 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
Negative
69.00
Price Trends
71.43
Negative
76.12
Negative
71.71
Negative
Market Momentum
-1.16
Positive
45.90
Neutral
37.64
Neutral
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 69 is below the 20-day moving average (MA) of 69.78, below the 50-day MA of 71.43, and below the 200-day MA of 71.71, indicating a bearish trend. The MACD of -1.16 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 37.64 is Neutral, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.42B | 29.99 | 5.12% | 1.65% | 3.83% | -5.55% | |
64 Neutral | $15.38B | 957.25 | 1.32% | 1.84% | -1.30% | -80.81% | |
63 Neutral | $4.06B | 19.22 | 3.87% | 6.54% | 0.53% | -1.38% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
60 Neutral | $11.77B | 748.67 | 0.23% | 5.79% | 4.10% | -92.47% | |
54 Neutral | $4.67B | 786.64 | 0.71% | 5.03% | 5.12% | ― | |
52 Neutral | $464.48M | ― | -11.53% | 3.31% | -11.47% | -89.12% |
* Real Estate Sector Average
Performance Comparison
BXP
Boston Properties
69.00
8.76
14.54%
HPP
Hudson Pacific Properties
3.15
-3.41
-51.98%
KRC
Kilroy Realty
33.32
-0.13
-0.39%
SLG
SL Green Realty
61.96
13.98
29.14%
VNO
Vornado Realty
39.75
14.48
57.30%
ESRT
Empire State Realty
8.54
-1.14
-11.78%
Boston Properties Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -5.71% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong leasing activity, successful project deliveries, and strategic investments, indicating positive momentum in the market. However, concerns over interest rates, inflation, and impairment charges on West Coast assets present challenges, along with a slight decline expected in 2025 earnings. Despite these issues, the overall sentiment leans towards stability and growth in the long term.Highlights
Record Leasing Activity
Completed over 2.3 million square feet of leasing in Q4 2024, the highest since Q2 2019, and 130% of the long-term average for Q4. Total leasing for 2024 was 5.6 million square feet, 35% greater than 2023.
Successful Developments and Deliveries
Delivered two projects ahead of schedule: a 240,000-square-foot office-to-lab conversion and a 508-unit luxury residential high-rise, both exceeding expectations in leasing and rents.
Positive Market Trends
Premier workplaces outperform broader markets with direct vacancy at 13.2% versus 18.8%. Asking rents for premier workplaces are over 50% higher than the broader market.
Strategic New Investments
Commenced new office development in Washington D.C. with a long-term pre-lease commitment, projecting an initial cash development yield of over 8%.
Favorable Development Pipeline
Executing on a significant development pipeline with seven projects aggregating approximately 2.3 million square feet and $2.1 billion of investment.
Lowlights
Interest Rate and Inflation Concerns
Inflation measured at CPI has risen to 2.9%, affecting interest rates. Fed cautious in lowering forecast for rate cuts in 2025, impacting cost of capital.
Impairment Charges
Non-cash impairment charges of $341 million related to three unconsolidated joint ventures, all located on the West Coast.
Occupancy Challenges
Occupancy expected to decline slightly in the first half of 2025 due to several larger expirations, impacting NOI growth.
Lower Earnings Guidance for 2025
2025 FFO guidance indicates a decline of 2% at the high end from 2024, primarily due to higher net interest expense and loss of NOI from out-of-service buildings.
Company Guidance
During the fourth quarter of 2024, BXP experienced strong performance, with FFO per share aligning with forecasts and market consensus. The company completed over 2.3 million square feet of leasing, marking the highest quarterly leasing since Q2 2019 and surpassing the long-term average by 130%. Significant leasing announcements included agreements with Bain Capital, Ropes & Gray, McDermott Will & Emery, and KnitWell, contributing to a total of 5.6 million square feet leased in 2024, a 35% increase over 2023. While interest rates remain a concern, with CPI rising to 2.9% and long-term rates up by nearly 100 basis points, BXP anticipates short-term interest rates in 2025 to be lower than in 2024, potentially benefiting capital costs. The company is also developing a new office project at 725 12th Street in Washington, D.C., with a projected budget of $350 million and a development yield over 8%, expected for completion in late 2028.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.