Skip to Content

Boston Properties Inc BXP

Morningstar Rating
$65.20 +2.06 (3.26%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Following Two Years of Rising Interest Rates, We Believe REITs Are Trading at Significant Discounts

We believe that there are several attractive opportunities across the US REIT sector for investors to consider. Following the recovery of many REIT sector fundamentals from the pandemic by mid-2021, we viewed the REIT sector as fairly valued through early 2022. However, the past two years have seen the rapid rise in interest rates and a slowing economy, which has led to major valuation declines across the sector. Our analysis of the REIT sector over the past 25 years suggests that the relative stock performance of REITs is negatively correlated with interest rate movements. The second and third quarters of 2023 saw large interest rate increases with the 10-year Treasury approaching 5%, which led to the sector underperforming. This occurred even as many REITs reported same-store net operating income, or NOI, growth at historical highs in 2022 due to high inflation. Higher interest rates, lower liquidity, tighter capital market conditions, and decelerating same-store NOI growth all led to a significant correction in the stock price for many REITs.

Price vs Fair Value

BXP is trading within a range we consider fairly valued.
Price
$62.89
Fair Value
$23.00
Uncertainty
High
1-Star Price
$334.17
5-Star Price
$27.50
Economic Moat
Kdl
Capital Allocation
Xsyznmq

Bulls Say, Bears Say

Bulls

Boston Properties owns premier properties in supply-constrained cities that have favorable regional dynamics and strong growth prospects. Additionally, the life sciences portfolio of the company should benefit from the strong demand in the burgeoning sector.

Bears

Employees are still reluctant to return to the office as physical building occupancy rates remain at approximately 50% of the prepandemic level.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if BXP is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$63.14
Day Range
$63.6865.43
52-Week Range
$46.8273.97
Bid/Ask
$65.19 / $65.22
Market Cap
$10.25 Bil
Volume/Avg
1.0 Mil / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
23.29
Price/Sales
3.03
Dividend Yield (Trailing)
6.21%
Dividend Yield (Forward)
6.21%
Total Yield
6.21%

Company Profile

Boston Properties owns over 190 properties consisting of approximately 53 million rentable square feet of space. The portfolio is dominated by office buildings and is spread across major cities such as New York, Boston, San Francisco, Los Angeles, Seattle, and the Washington, D.C., region. The real estate investment trust also owns limited retail, hotel, and residential properties.
Sector
Real Estate
Industry
REIT - Office
Stock Style Box
Mid Value
Total Number of Employees
836

Competitors

Valuation

Metric
BXP
ESRT
VNO
Price/Earnings (Normalized)
23.2951.45103.43
Price/Book Value
1.691.651.21
Price/Sales
3.033.582.91
Price/Cash Flow
6.7810.097.83
Price/Earnings
BXP
ESRT
VNO

Financial Strength

Metric
BXP
ESRT
VNO
Quick Ratio
4.083.781.74
Current Ratio
4.194.132.03
Interest Coverage
1.381.711.04
Quick Ratio
BXP
ESRT
VNO

Profitability

Metric
BXP
ESRT
VNO
Return on Assets (Normalized)
1.33%1.86%0.31%
Return on Equity (Normalized)
5.53%8.04%1.13%
Return on Invested Capital (Normalized)
3.08%4.06%1.74%
Return on Assets
BXP
ESRT
VNO
See how this stock stacks up to its competitors with Morningstar Investor

REIT - Office Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ARE
Alexandria Real Estate Equities IncMqccqvbtZlzn$22.3 Bil
GECFF
Gecina NomHldcmj$7.5 Bil
DEXSF
DexusPwkvcf$5.5 Bil
VNO
Vornado Realty TrustCnlzwvwvmThhv$5.2 Bil
MPCMF
Mapletree Pan Asia Commercial Trust Units Real Estate Investment Trust RegDdz$5.0 Bil
KRC
Kilroy Realty CorpDyswbyyctbShcjz$4.2 Bil
CUZ
Cousins Properties IncXxxhh$3.6 Bil
SLG
SL Green Realty CorpGgdsmflkzPmjp$3.5 Bil
IMQCF
Inmobiliaria Colonial SOCIMI SA Shs from reverse splitKkpp$3.1 Bil

Sponsor Center