Update shared on05 Sep 2025
Fair value Increased 1.46%Analysts slightly reduced BXP's price targets amid sector-wide revisions, updated occupancy and interest expense assumptions, and raised risk premiums for office REITs following share price outperformance, resulting in an unchanged consensus fair value of $76.00.
Analyst Commentary
- Bearish analysts have made modest downward adjustments to price targets reflecting updated occupancy and interest expense assumptions.
- Sector-wide revisions among U.S. Real Estate & REITs have prompted recalibration of estimates following Q2 results and ahead of earnings season.
- Expectations for the office sector remain neutral due to macro headwinds and overall sector dynamics.
- Share price outperformance over the prior three months has raised the bar for future performance, contributing to reduced price targets.
- Risk premiums for BXP and the office REIT space are now viewed as elevated relative to sector fundamentals.
What's in the News
- BXP to hold Analyst/Investor Day to discuss operating environment, strategies, development, acquisitions, dispositions, and other business and financial matters.
- Full vertical construction commenced on 343 Madison Avenue, a premier 930,000 sq. ft. sustainable workplace in Midtown Manhattan; a major financial institution has signed a letter of intent to anchor 30% of the building.
- Issued third quarter 2025 EPS guidance of $0.41–$0.43.
- Raised full year 2025 EPS guidance to $1.74–$1.82, with the midpoint up $0.12 per share due to a gain on the 17 Hartwell Avenue sale and stronger-than-expected FFO.
Valuation Changes
Summary of Valuation Changes for BXP
- The Consensus Analyst Price Target remained effectively unchanged, at $76.00.
- The Future P/E for BXP has significantly fallen from 47.22x to 42.43x.
- The Discount Rate for BXP remained effectively unchanged, moving only marginally from 8.84% to 8.86%.
Disclaimer
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