Boston, Massachusetts-based BXP, Inc. (BXP) is the largest publicly traded developer, owner, and manager of premier workplaces. Valued at $12.1 billion by market cap, the company operates as a real estate investment trust (REIT), including properties owned by joint ventures totaling 53.5 million square feet and 186 properties.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and BXP perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT - office industry. BXP excels with its high-quality properties in prime markets, achieving strong occupancy rates and commanding premium rents due to its reputation as a top landlord for creditworthy clients.
Despite its notable strength, BXP slipped 16.3% from its 52-week high of $90.11, achieved on Oct. 18, 2024. Over the past three months, BXP stock gained 7.3%, outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 1.6% losses during the same time frame.
In the longer term, shares of BXP rose 1.5% on a YTD basis but dipped 8.5% over the past 52 weeks, underperforming XLRE’s YTD gains of 2.2% and 7.3% drop over the last year.
To confirm the bullish trend, BXP has been trading above its 50-day and 200-day moving averages since late August.
On Jul. 29, BXP reported its Q2 results, and its shares tumbled 8.4% in the following three trading sessions. Its FFO per share of $1.71 surpassed Wall Street expectations of $1.67. The company’s revenue totaled $868.5 million, representing a 2.1% year-over-year increase. BXP expects full-year FFO to be between $6.84 and $6.92 per share.
In the competitive arena of REIT - office, SL Green Realty Corp. (SLG) has lagged behind the stock, with 10.2% losses on a YTD basis and a 14.7% fall over the past 52 weeks.
Wall Street analysts are reasonably bullish on BXP’s prospects. The stock has a consensus “Moderate Buy” rating from the 21 analysts covering it, and the mean price target of $77.47 suggests a potential upside of 2.7% from current price levels.
