Valued at a market cap of $10.6 billion, BXP, Inc. (BXP) is a fully integrated REIT that develops, owns, and manages premier office and mixed-use properties in the U.S. The Boston, Massachusetts-based company focuses on six major gateway markets, including Boston, New York, San Francisco, Los Angeles, Seattle, and Washington, D.C.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and BXP fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the REIT - office industry. The company benefits from long lease terms with blue-chip tenants, ensuring stable cash flows and occupancy rates. It also stands out for its leadership in sustainability and innovation, targeting carbon-neutral operations by 2025 and consistently achieving high energy efficiency certifications across its portfolio.
This office REIT has slipped 26% from its 52-week high of $90.11, reached on Oct. 18, 2024. Shares of BXP have declined 2.3% over the past three months, lagging behind the Dow Jones Industrial Average’s ($DOWI) marginal return during the same time frame.
In the longer term, BXP has gained 10.3% over the past 52 weeks, underperforming DOWI’s 9.9% rise over the same time frame. Moreover, on a YTD basis, shares of BXP are down 9.4%, compared to DOWI’s 1% gain.
To confirm its bearish trend, BXP has been trading below its 200-day moving average since mid-February, and has again recently started trading below its 50-day moving average.
On Apr. 29, BXP released its mixed Q1 results, and its shares plunged 2.1% in the following trading session. On the upside, the company's revenue grew 3.1% year-over-year to $865.2 million and surpassed the consensus estimates by a notable 9.4%. However, its FFO per share of $1.64 declined 5.2% from the year-ago quarter and fell short of the analyst estimates by a penny. The earnings miss might have dampened investor confidence. Looking ahead to fiscal 2025, BXP expects FFO in the range of $6.80 to $6.92 per share.
BXP has outpaced its rival, SL Green Realty Corp.'s (SLG) 5% gain over the past 52 weeks and 13.9% decline on a YTD basis.
Despite BXP’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 21 analysts covering it, and the mean price target of $75.78 suggests a 13.7% premium to its current price levels.
