Boston, Massachusetts-based BXP, Inc. (BXP) is the largest publicly traded developer, owner, and manager of premier workplaces. Valued at $11.3 billion by market cap, the company operates as a real estate investment trust (REIT), including properties owned by joint ventures totaling 53.5 million square feet and 186 properties.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and BXP perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT - office industry. BXP excels with its high-quality properties in prime markets, achieving strong occupancy rates and commanding premium rents due to its reputation as a top landlord for creditworthy clients.
Despite its notable strength, BXP slipped 15.1% from its 52-week high of $83.29, achieved on Dec. 9, 2024. Over the past three months, BXP stock declined 10.4%, underperforming the iShares Cohen & Steers REIT ETF’s (ICF) 2.5% losses during the same time frame.
In the longer term, shares of BXP fell 2.9% on a six-month basis, outperforming ICF’s six-month losses of 3.2%. However, the stock dipped 12.3% over the past 52 weeks, underperforming ICF’s 5.5% drop over the last year.
BXP has been trading above its 200-day moving average since late August, with slight fluctuations. However, the stock has been trading below its 50-day moving average since early October, with slight fluctuations.
On Oct. 28, BXP reported its Q3 results, and its shares closed down more than 5% in the following trading session. Its FFO of $1.74 per share surpassed Wall Street expectations of $1.72 per share. The company’s revenue stood at $871.5 million, up 1.4% year over year. BXP expects full-year FFO in the range of $6.89 to $6.92 per share.
In the competitive arena of REIT - office, SL Green Realty Corp. (SLG) has lagged behind the stock, with 30.6% losses on a six-month basis and a 39.3% fall over the past 52 weeks.
Wall Street analysts are reasonably bullish on BXP’s prospects. The stock has a consensus “Moderate Buy” rating from the 23 analysts covering it, and the mean price target of $79.05 suggests a potential upside of 11.8% from current price levels.
