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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on BXP

Boston Properties' recent performance was driven by strong leasing momentum, with over 1.5 million square feet of leases signed in Q3 2025, representing a 38% increase year-over-year. The company's focus on high-quality and life science office conversions lifted leasing activity. Despite debt and higher interest costs being a concern, BXP's Q3 FFO and revenues beat estimates. The company raised its 2025 FFO guidance, citing solid leasing gains. BXP's strategic portfolio moves, including asset sales and partnerships, aim to fuel long-term growth. A 28.6% dividend cut allowed for $50M quarterly allocation to developments.

1.c. Company Highlights

2. BXP's Q3 2025 Earnings: A Strong Performance

BXP reported funds from operations (FFO) of $1.74 per share, beating the midpoint of its guidance range by $0.04 per share and market consensus by $0.02 per share. The company's financial performance was driven by a combination of straight-line rent impact from completing early renewals at higher rents and lower net operating expenses in the portfolio, as noted by Michael LaBelle, "All outperformance came from better-than-projected same-property portfolio NOI." The company's total portfolio percentage leased for the quarter was 88.8%, a decline of 30 basis points. Excluding the impact of placing the 3 development properties in service, the lease percentage increased by 10 basis points to 89.2%.

Publication Date: Nov -02

📋 Highlights
  • FFO Outperformance:: Q3 FFO per share of $1.74 exceeded forecast by $0.04 and market consensus by $0.02, with full-year guidance raised by $0.03 at midpoint.
  • Leasing Momentum:: 1.5 million sq ft leased in Q3 (39% YoY growth), exceeding 5-year average by 130%, with 3.8 million sq ft year-to-date.
  • Capital Optimization:: Asset sales pipeline includes $750–800M from 10 properties, adding to $400M under contract and $57M already closed.
  • Low Rollover Risk:: Next 30 months feature 60% lower lease expirations than 10-year average, with 2026–2027 expirations reduced by 8%.

Operational Highlights

BXP's operational performance was strong, with the company completing over 1.5 million square feet of leasing in the third quarter, 39% greater than the third quarter of 2024. The company's leasing activity was driven by a number of larger leases, including 5 that were each over 75,000 square feet. 60% of the square footage involved renewals or extensions, and 40% was either new clients or expansions from existing clients. The company's same-store leasing and occupancy growth are expected to drive bottom-line contribution to future earnings, as reaffirmed by Doug Linde, "We've entered a 30-month period of very light lease expirations, 60% of the historical annual average over the last 10 years."

Capital Management and Asset Sales

BXP has made significant progress in its capital management and asset sales strategy. The company has completed the sale of 4 land assets for total net proceeds of $57 million and has under contract 9 assets for total net proceeds of approximately $400 million. The company's debt markets have been steadily improving throughout 2025, with a $1 billion 5-year unsecured exchangeable notes deal closed in late September at a 2% coupon. The company's refinancing plan is off to a strong start, with the exchangeable notes deal pricing with a GAAP yield 75 basis points better than anticipated.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 1.8%. The company's current P/E Ratio is -56.25, P/B Ratio is 2.25, and EV/EBITDA is 17.5. The Dividend Yield is 5.11%, and Free Cash Flow Yield is 10.94%. The company's ROE is -3.82%, and Net Debt / EBITDA is 10.47. These metrics suggest that the company's valuation is reasonable, given its growth prospects and financial performance. The actual EPS came out at $1.74 relative to estimates at $1.72, indicating a positive surprise.

3. NewsRoom

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Here Are Thursday’s Top Wall Street Analyst Research Calls: AutoZone, BXP, Fiserv, Meta Platforms, PayPal, Salesforce, Toast and More

Dec -04

Source:

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Groupe la Francaise Sells 10,768 Shares of BXP, Inc. $BXP

Dec -04

Source: defenseworld.net

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BXP CEO: AI companies added 6 million sq. ft. of office demand in SF

Nov -18

Source: youtube.com

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BXP vs. GLPI: Which Stock Should Value Investors Buy Now?

Nov -18

Source: zacks.com

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The Dark Side Of REIT Investing

Nov -15

Source: seekingalpha.com

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3 Interest Rate Sensitive Stocks to Buy Before Rates Fall Off a Cliff

Nov -06

Source: 247wallst.com

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Teacher Retirement System of Texas Has $1.54 Million Stock Position in BXP, Inc. $BXP

Nov -05

Source: defenseworld.net

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Reviewing FrontView REIT (NYSE:FVR) & BXP (NYSE:BXP)

Nov -05

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.47%)

6. Segments

Premier Workplace

Expected Growth: 2.5%

Premier Workplace from Boston Properties, Inc. achieves 2.5% growth driven by increasing demand for Class A office spaces, strategic location in Boston's thriving business hub, and high-quality amenities. Additionally, the company's focus on sustainability, energy efficiency, and tenant experience enhancements contribute to its growth momentum.

Residential

Expected Growth: 1.8%

Boston Properties' 1.8% residential growth is driven by increasing demand for luxury apartments in urban areas, fueled by a strong job market and limited housing supply. Additionally, the company's focus on amenity-rich, Class-A properties in high-growth markets such as Boston and Washington D.C. contributes to its growth.

Hotel

Expected Growth: 1.2%

Boston Properties' hotel segment growth of 1.2% is driven by increasing business travel demand, particularly in urban areas, and a strong leisure travel market. Additionally, the company's strategic focus on premium properties in high-barrier-to-entry markets, such as Boston and Washington D.C., contributes to its growth.

7. Detailed Products

Class A Office Space

High-quality office spaces in prime locations, offering modern amenities and flexible lease terms

Mixed-Use Developments

Integrated projects combining office, retail, and residential spaces, enhancing urban livability and community engagement

Retail and Restaurant Space

Prime retail and restaurant locations in high-traffic areas, offering flexible lease terms and customized build-outs

Industrial and Logistics Facilities

Modern industrial and logistics facilities, offering flexible space and strategic locations for efficient supply chain management

Life Science and Laboratory Space

Specialized facilities designed for life science and laboratory uses, featuring advanced infrastructure and flexible lease terms

Residential and Multifamily Housing

Luxury residential properties and multifamily housing developments, offering high-end amenities and convenient locations

8. Boston Properties, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Boston Properties, Inc. operates in a highly competitive industry, and there are many substitutes available for office space, such as coworking spaces and virtual offices. However, the company's high-quality properties and prime locations help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Boston Properties, Inc. has a diverse tenant base, which reduces the bargaining power of individual customers. Additionally, the company's high-quality properties and strong relationships with tenants help to maintain a stable and loyal customer base.

Bargaining Power Of Suppliers

Boston Properties, Inc. has a strong negotiating position with its suppliers, given its large scale and diversified portfolio of properties. This allows the company to negotiate favorable terms and prices with its suppliers.

Threat Of New Entrants

The commercial real estate industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with established players like Boston Properties, Inc.

Intensity Of Rivalry

The commercial real estate industry is highly competitive, with many established players competing for tenants and market share. Boston Properties, Inc. faces intense competition from other REITs and private developers, which can lead to downward pressure on rents and occupancy rates.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 73.02%
Debt Cost 5.28%
Equity Weight 26.98%
Equity Cost 9.75%
WACC 6.49%
Leverage 270.63%

11. Quality Control: Boston Properties, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
COPT Defense

A-Score: 6.1/10

Value: 4.2

Growth: 4.8

Quality: 5.7

Yield: 8.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Alexandria Real Estate Equities

A-Score: 5.8/10

Value: 7.9

Growth: 4.4

Quality: 6.1

Yield: 9.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Vornado Realty

A-Score: 5.2/10

Value: 5.4

Growth: 2.2

Quality: 6.6

Yield: 6.0

Momentum: 5.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Douglas Emmett

A-Score: 4.9/10

Value: 4.3

Growth: 4.6

Quality: 3.7

Yield: 8.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Boston Properties

A-Score: 4.8/10

Value: 3.3

Growth: 3.1

Quality: 3.8

Yield: 8.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
SL Green Realty

A-Score: 4.1/10

Value: 2.1

Growth: 0.9

Quality: 3.5

Yield: 9.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

68.9$

Current Price

68.9$

Potential

-0.00%

Expected Cash-Flows