NYSE:BXP

Stock Analysis Report

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

Average dividend payer with concerning outlook.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

BXP

2.0%

US REITs

0.9%

US Market


1 Year Return

10.2%

BXP

16.0%

US REITs

20.0%

US Market

Return vs Industry: BXP underperformed the US REITs industry which returned 16.2% over the past year.

Return vs Market: BXP underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

BXPIndustryMarket
7 Day2.8%2.0%0.9%
30 Day5.5%4.5%1.4%
90 Day6.5%6.1%8.8%
1 Year13.4%10.2%20.8%16.0%22.5%20.0%
3 Year16.6%7.3%39.9%22.4%49.9%40.3%
5 Year19.4%4.5%58.3%25.6%73.2%54.1%

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

Valuation

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

44.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BXP ($147.23) is trading above our estimate of fair value ($113.73)

Significantly Below Fair Value: BXP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BXP is poor value based on its PE Ratio (44.5x) compared to the REITs industry average (37.3x).

PE vs Market: BXP is poor value based on its PE Ratio (44.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: BXP is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: BXP is overvalued based on its PB Ratio (4.2x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Boston Properties forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BXP's forecast earnings growth (8.9% per year) is above the savings rate (1.7%).

Earnings vs Market: BXP's earnings (8.9% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: BXP's revenue (4.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BXP's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BXP's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Boston Properties performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BXP has high quality earnings.

Growing Profit Margin: BXP's current net profit margins (17.3%) are lower than last year (21.1%).


Past Earnings Growth Analysis

Earnings Trend: BXP's earnings have declined by -1% per year over the past 5 years.

Accelerating Growth: BXP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BXP had negative earnings growth (-10.7%) over the past year, making it difficult to compare to the REITs industry average (6.9%).


Return on Equity

High ROE: BXP's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Boston Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BXP has a high level of physical assets or inventory.

Debt Coverage by Assets: BXP's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: BXP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BXP has a sufficient allowance for bad loans.

Low Risk Liabilities: BXP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BXP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BXP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BXP has an appropriate level of bad loans.


Next Steps

Dividend

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

2.66%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: BXP's dividend (2.66%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BXP's dividend (2.66%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: BXP's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.3%), BXP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BXP'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?

12.5yrs

Average management tenure


CEO

Owen Thomas (57yo)

6.8yrs

Tenure

US$11,694,946

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 ($USD11.69M) is about average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Owen Thomas
CEO & Director6.8yrsUS$11.69m0.0059% $1.5m
Douglas Linde
President & Director10.1yrsUS$8.10m0.12% $30.3m
Michael LaBelle
Executive VP12.3yrsUS$3.95m0.0078% $2.0m
Raymond Ritchey
Senior Executive Vice President21.8yrsUS$7.11m0.023% $5.8m
Bryan Koop
Executive Vice President of Boston Region4.1yrsUS$3.24m0.00038% $96.6k
Mortimer Zuckerman
Co-Founder & Chairman Emeritus3.8yrsUS$654.66kno data
Michael Walsh
Senior VP & Chief Accounting Officer3.7yrsno datano data
James Whalen
Senior VP & Chief Information Officer0yrsno datano data
Sara Buda
Vice President0yrsno datano data
Frank Burt
Senior VP17.1yrsno datano data

12.5yrs

Average Tenure

57yo

Average Age

Experienced Management: BXP's management team is seasoned and experienced (12.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Owen Thomas
CEO & Director6.8yrsUS$11.69m0.0059% $1.5m
Douglas Linde
President & Director10.1yrsUS$8.10m0.12% $30.3m
Mortimer Zuckerman
Co-Founder & Chairman Emeritus3.8yrsUS$654.66kno data
Bruce Duncan
Independent Director3.8yrsUS$210.75kno data
Karen Dykstra
Independent Director3.8yrsUS$217.50k0.0034% $859.4k
Matthew Lustig
Independent Director9.1yrsUS$209.36kno data
Joel Klein
Independent Non-Executive Chairman0.8yrsUS$221.25kno data
Carol Einiger
Independent Director15.8yrsUS$219.75kno data
David Twardock
Independent Director16.8yrsUS$247.50k0.0038% $968.7k
Kelly Ayotte
Independent Director1.8yrsUS$170.73kno data

5.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: BXP's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BXP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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
  • Exchange: NYSE
  • Founded: 1970
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$25.426b
  • Market Cap: US$22.790b
  • Shares outstanding: 172.70m
  • 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 52.0 million square feet and 196 properties, including 11 properties under construction. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:32
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.