Boston, Massachusetts-based BXP, Inc. (BXP) is a developer, owner, and manager of premier workplaces in the United States. With a market cap of $14.1 billion, its properties are concentrated in the dynamic gateway markets of Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. The REIT is expected to release its Q3 earnings after the market closes on Tuesday, Oct. 29.
Ahead of the event, analysts expect BXP to report funds from operations (FFO) of $1.81 per share, down 2.7% from $1.86 per share reported in the year-ago quarter. The company has surpassed or matched Wall Street’s FFO projections in each of the past four quarters. Its FFO for the last reported quarter declined 4.8% year-over-year to $1.77 per share, exceeding the estimates by 2.9%.
For fiscal 2024, analysts expect BXP to report an FFO of $7.10 per share, down 2.5% from $7.28 in fiscal 2023. However, in fiscal 2025, its FFO is expected to grow marginally year-over-year to $7.15 per share.
BXP stock has gained 27.9% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 23% gains and the Real Estate Select Sector SPDR Fund’s (XLRE) 11.7% returns during the same time frame.
Despite reporting better-than-expected Q2 results on Jul. 30, shares of BXP fell 1.8% the following day. The company reported a 4.1% year-over-year growth in total revenues, reaching $850.5 million, driven by growth in lease, hotel, parking, and other revenues. However, while its EPS and FFO exceeded the mid-point guidance due to lower-than-projected non-cash interest expense due to the reassessment of the finance lease related to The Skylyne in Oakland, earnings to shareholders fell by 23.7% to $79.6 million, and FFO dropped by 4.9% to $278.4 million. Additionally, the company revised its full-year FFO per share guidance of $7.09 - $7.15, which likely didn’t impress investors.
The consensus opinion on BXP stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 22 analysts, seven recommend “Strong Buy,” 14 advise “Hold,” and one suggests a “Strong Sell” rating. As of writing, the stock is trading above its mean price target of $75.06.
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