Valued at a market cap of $12.7 billion, BXP, Inc. (BXP) is a real estate company that develops, owns, and manages premier workplaces in the United States. The Boston, Massachusetts-based company mainly concentrates on six dynamic markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC.
Companies valued at $10 billion or more are generally described as “large-cap” stocks, and BXP fits right into that category. The company is the largest publicly traded developer, owner, and manager of premier workplaces in the United States and owns more than 186 properties. It is renowned for its in-house building management expertise and commitment to sustainable development.
Shares of BXP are trading 3.4% below their 52-week high of $83.85, which they hit on Sep. 19. The REIT has gained 32.6% over the past three months, surpassing the broader Real Estate Select Sector SPDR Fund’s (XLRE) 17.9% return over the same time frame.
In the longer term, BXP stock is up 15.5% on a YTD basis, surpassing XLRE’s 11.1% gains. Moreover, shares of BXP have gained 40.4% over the past 52 weeks, outperforming XLRE’s 31.3% returns over the same time frame.
BXP has been trading above its 200-day and 50-day moving averages since early July to confirm its bullish trend.
BXP has benefited from its strategy of concentrating on a few high-rent, high barriers-to-entry geographic markets and its solid tenant base, which positions the company to generate stable revenues, even during the economic downturn.
BXP released its Q2 earnings report on Jul. 30. The company reported funds from operations (FFO) of $1.77 per share, which surpassed the Wall Street estimates of $1.72, and its revenue of $790.6 million in the period also topped Street forecasts of $781.3 million. Despite better-than-expected performance, shares of BXP fell 1.8% in the following trading session. The company expects full-year FFO to be between $7.09 and $7.15 per share.
Highlighting the contrast in performance, BXP has significantly lagged behind its rival, SL Green Realty Corp. (SLG), which gained 100.5% over the past 52 weeks and 55.6% on a YTD basis.
Given BXP’s outperformance relative to its industry peers, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 22 analysts in coverage, and as of writing, the stock is trading above its mean price target of $74.61.
On the date of publication, Rashmi Kumari 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.
