NYSE:BXP.PRB

Stock Analysis Report

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Executive Summary

Boston Properties (NYSE: BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC.


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Boston Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BXP.PRB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.1%

BXP.PRB

4.6%

US REITs

2.9%

US Market


1 Year Return

1.5%

BXP.PRB

-7.2%

US REITs

8.9%

US Market

Return vs Industry: BXP.PRB exceeded the US REITs industry which returned -7.4% over the past year.

Return vs Market: BXP.PRB underperformed the US Market which returned 9.2% over the past year.


Shareholder returns

BXP.PRBIndustryMarket
7 Day1.1%4.6%2.9%
30 Day4.4%11.3%10.6%
90 Day0.4%-9.8%5.1%
1 Year6.9%1.5%-3.3%-7.2%11.4%8.9%
3 Year15.5%-1.3%16.7%2.3%34.3%25.4%
5 Year35.2%4.2%47.8%17.6%60.7%42.7%

Price Volatility Vs. Market

How volatile is Boston Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Boston Properties undervalued compared to its fair value and its price relative to the market?

1.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BXP.PRB ($25.4) is trading below our estimate of fair value ($26.15)

Significantly Below Fair Value: BXP.PRB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BXP.PRB is good value based on its PE Ratio (16.3x) compared to the REITs industry average (28.9x).

PE vs Market: BXP.PRB is poor value based on its PE Ratio (16.3x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: BXP.PRB is poor value based on its PEG Ratio (51.5x)


Price to Book Ratio

PB vs Industry: BXP.PRB is overvalued based on its PB Ratio (2.5x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Boston Properties forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BXP.PRB's forecast earnings growth (0.3% per year) is below the savings rate (2.2%).

Earnings vs Market: BXP.PRB's earnings (0.3% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: BXP.PRB's earnings are forecast to grow, but not significantly.

Revenue vs Market: BXP.PRB's revenue (6.1% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: BXP.PRB's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BXP.PRB's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Boston Properties performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BXP.PRB has a large one-off gain of $436.1M impacting its March 31 2020 financial results.

Growing Profit Margin: BXP.PRB's current net profit margins (30.8%) are higher than last year (17.9%).


Past Earnings Growth Analysis

Earnings Trend: BXP.PRB's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: BXP.PRB's earnings growth over the past year (83.8%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: BXP.PRB earnings growth over the past year (83.8%) exceeded the REITs industry 5.2%.


Return on Equity

High ROE: BXP.PRB's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is Boston Properties's financial position?


Financial Position Analysis

Short Term Liabilities: BXP.PRB's short term assets ($2.2B) exceed its short term liabilities ($547.2M).

Long Term Liabilities: BXP.PRB's short term assets ($2.2B) do not cover its long term liabilities ($12.9B).


Debt to Equity History and Analysis

Debt Level: BXP.PRB's debt to equity ratio (143.1%) is considered high.

Reducing Debt: BXP.PRB's debt to equity ratio has increased from 124.2% to 143.1% over the past 5 years.

Debt Coverage: BXP.PRB's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: BXP.PRB's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Boston Properties's current dividend yield, its reliability and sustainability?

4.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BXP.PRB's dividend (4.1%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: BXP.PRB's dividend (4.1%) is low compared to the top 25% of dividend payers in the US market (4.39%).


Stability and Growth of Payments

Stable Dividend: BXP.PRB's dividends per share have been stable in the past 10 years.

Growing Dividend: BXP.PRB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.7%), BXP.PRB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BXP.PRB's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.8yrs

Average management tenure


CEO

Owen Thomas (57yo)

7.17yrs

Tenure

US$11,917,600

Compensation

Owen David Thomas has served as Chief Executive Officer of Boston Properties, Inc. since April 2013 and serves as its Director. Mr. Thomas served as Chairman of the Board of Directors of Lehman Brothers Ho ...


CEO Compensation Analysis

Compensation vs Market: Owen's total compensation ($USD11.92M) is about average for companies of similar size in the US market ($USD11.58M).

Compensation vs Earnings: Owen's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Owen Thomas
CEO & Director7.17yrsUS$11.92m0.0059% $973.3k
Douglas Linde
President & Director10.42yrsUS$8.09m0.12% $19.5m
Michael LaBelle
Executive VP12.58yrsUS$3.75m0.0078% $1.3m
Raymond Ritchey
Senior Executive Vice President22.17yrsUS$6.58mno data
Bryan Koop
Executive Vice President of Boston Region4.42yrsUS$3.05m0.0017% $272.5k
Mortimer Zuckerman
Co-Founder & Chairman Emeritus4.08yrsUS$654.66kno data
Michael Walsh
Senior VP & Chief Accounting Officer4yrsno datano data
Sara Buda
Vice Presidentno datano datano data
Frank Burt
Senior VP17.42yrsno datano data
Donna Garesché
Senior VP & Chief Human Resources Officerno datano datano data

12.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: BXP.PRB's management team is seasoned and experienced (12.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Owen Thomas
CEO & Director7.17yrsUS$11.92m0.0059% $973.3k
Douglas Linde
President & Director10.42yrsUS$8.09m0.12% $19.5m
Mortimer Zuckerman
Co-Founder & Chairman Emeritus4.08yrsUS$654.66kno data
Bruce Duncan
Independent Director4.08yrsUS$274.19k0.014% $2.2m
Karen Dykstra
Independent Director4.08yrsUS$260.00k0.0045% $732.0k
Matthew Lustig
Independent Director9.42yrsUS$255.00kno data
Joel Klein
Independent Non-Executive Chairman1.08yrsUS$320.00kno data
Carol Einiger
Independent Director16.08yrsUS$235.85k0.0052% $845.3k
David Twardock
Independent Director17.08yrsUS$280.00k0.0049% $804.2k
Kelly Ayotte
Independent Director2.08yrsUS$240.00kno data

5.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: BXP.PRB's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Boston Properties, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Boston Properties, Inc.
  • Ticker: BXP.PRB
  • Exchange: NYSE
  • Founded: 1970
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$16.413b
  • Market Cap: US$15.069b
  • Shares outstanding: 171.79m
  • Website: https://www.bostonproperties.com

Number of Employees


Location

  • Boston Properties, Inc.
  • Prudential Center
  • 800 Boylston Street
  • Boston
  • Massachusetts
  • 2199
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BXPNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1997
BO9DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1997
0HOXLSE (London Stock Exchange)YesCommon StockGBUSDJun 1997
BXP.PRBNYSE (New York Stock Exchange)DEP 1/100 PF BUSUSDMar 2013
BOXP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/10 COM USD0.01BRBRLJul 2015

Biography

Boston Properties (NYSE: BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s portfolio totals 51.8 million square feet and 196 properties, including 10 properties under construction/redevelopment. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 04:58
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.