Boston-based BXP, Inc. (BXP) is a developer, owner, and manager of premier workplaces in the United States. With a market cap of $10.4 billion, BXP’s properties are concentrated in the dynamic gateway markets of Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC.
The REIT has notably underperformed the broader market over the past year. BXP stock has declined 6.9% over the past 52 weeks and 12.4% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 16.1% gains over the past year and 9.7% returns in 2025.
Narrowing the focus, BXP has also underperformed the sector-focused Real Estate Select Sector SPDR Fund’s (XLRE) 2.2% drop over the past 52 weeks and a marginal 66 bps uptick in 2025.
Despite reporting better-than-expected topline and cash flows, BXP stock prices declined 5.7% in the trading session following the release of its Q2 results on Jul. 29. Driven by growth in lease income and development and management service revenues, the company’s overall topline for the quarter increased 2.1% year-over-year to $868.5 million, surpassing the Street expectations by 63 bps. Meanwhile, its FFO per share dropped 3.4% year-over-year to $1.71, but exceeded the consensus estimates by 2.4%.
However, the company has continued to observe low occupancy rates for an extended period. In Q2, BXP’s total portfolio occupancy stood at 86.4%, which likely unsettled investor confidence.
For the full fiscal 2025, ending in December, analysts expect BXP to deliver an FFO of $6.88 per share, down 3.1% year-over-year. The company has a mixed FFO surprise history. While it surpassed or met the Street’s FFO estimates thrice over the past four quarters, it missed the projections on one other occasion.
The stock has a consensus “Moderate Buy” rating overall. Of the 21 analysts covering the stock, opinions include eight “Strong Buys” and 13 “Holds.”
This configuration is notably more optimistic than two months ago, when two analysts gave “Strong Sell” recommendations.
On Jul. 14, Mizuho analyst Vikram Malhotra reiterated an “Outperform” rating on BXP and lowered the price target from $86 to $82.
BXP’s mean price target of $75.47 represents a premium of 15.8% to current price levels. Meanwhile, the street-high target of $86 suggests a potential upside of 32%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
