- Price
- $59.20
- Fair value
- $95.00
- Discount
- 37.7%
- Uncertainty
- High
- LSEG rating
- 2.41
- Moat
- None
- Next earnings
- 2026-10-27
- Next earnings is estimate
- No
- Company name
- BXP
- Sector
- Office REIT
- About
- BXP is the largest publicly traded developer, owner and manager of premier office buildings in the United States. It owns 164 properties with 51.1 million square feet, including joint ventures, in Boston, Los Angeles, New York, San Francisco, Seattle and Washington, DC. About 91% of its rent comes from clients in central business districts. It also develops new buildings, such as 343 Madison Avenue in New York, and laboratory buildings for life sciences companies. BXP is a real estate investment trust (REIT), so it pays out most of its taxable income as dividends.
- Thesis
- The market prices BXP for weak office demand and high debt. Investors fear that companies need less office space because of hybrid work. BXP's total occupancy was 88.4% at June 30, 2026, and its share of net debt was 7.94 times annualized EBITDAre. Higher interest rates raise the cost of refinancing its debt. For the gap to close, three things must be true. Occupancy must keep rising, because 1.3 million square feet of signed leases are due to start, about 85% of them before the end of 2026. BXP must sell assets as planned and reduce leverage. New developments, such as 343 Madison Avenue, must lease up at good rents. The Q3 2026 report on October 27, 2026 gives the next test of leasing and occupancy. If these checks pass, the gap can close, but slowly, over several years, as leases start and debt falls. The main reason it may not close is a longer fall in office demand, which BXP cannot control.
- Risks
- Office demand is weak where companies use less space. If clients leave when leases end, occupancy and cash flow can fall.
BXP had $15.6 billion of consolidated debt at June 30, 2026, and net debt of 7.94 times EBITDAre. Higher interest rates raise the cost of refinancing maturing debt.
Development projects such as 343 Madison Avenue need large investment. If leasing is slow or costs rise, returns can be lower than planned.
BXP plans to sell assets to reduce leverage. Weak demand for office buildings can force sales at low prices, as the impairment on Sumner Square showed.
- Balance sheet
- Cash: $494M
Debt: $15.6B
Net debt: $15.1B
Net debt / EBITDA: 7.9× (high)
Interest cover: 3.1×
BXP has high debt. Consolidated debt was $15.62 billion at June 30, 2026, and cash was $493.9 million. BXP's share of net debt, which adds its share of joint venture debt and takes out its partners' share, was $14.90 billion, 7.94 times its share of annualized EBITDAre of $1.88 billion, down from 8.50 times at March 31, 2026. The interest coverage ratio was 3.12 times without capitalized interest. In August 2026, BXP issued $700 million of 6.050% notes due 2036 to help repay $1.0 billion of 2.750% notes due on October 1, 2026. It also signed a $1.2 billion construction loan for 343 Madison Avenue. The quarterly dividend was $0.70 per share.
As of 2026-06-30.
- Checkpoints
- Oct 27, 2026: Q3 2026 earnings: occupancy and leasing. Pending. Watch: Occupancy above the 88.4% of Q2, FFO within $1.80 to $1.82 per share and steady leasing pass; lower occupancy or a cut in FFO guidance fail.
Jan 27, 2027 (estimate): Full-year 2026 report and 2027 guidance. Pending. Watch: 2027 FFO guidance above 2026 and progress on asset sales and leverage pass; lower guidance or higher leverage fail.
- Recent events
- 2026-08-31: BXP's operating partnership issued $700 million of 6.050% senior notes due 2036. It planned to use the money, with cash and its credit line, to repay $1.0 billion of 2.750% notes due October 1, 2026.
2026-07-28: BXP reported Q2 2026 results. Revenue rose 3.1% to $895.7 million, and FFO was $1.78 per diluted share. It signed about 1.8 million square feet of leases, including about 322,000 square feet with Boston Dynamics and about 148,000 square feet at 343 Madison Avenue. Total occupancy rose 100 basis points to 88.4%. BXP raised the midpoint of its 2026 FFO guidance to $6.99 to $7.05 per share.
2026-07-28: BXP signed a $1.2 billion construction loan for 343 Madison Avenue in New York, with a four-year term and an initial rate of Term SOFR plus 2.50%.
2026-05-27: BXP agreed to sell Sumner Square in Washington, DC, for a gross price of $63 million, as part of its asset sales plan. It recorded a non-cash impairment of about $18 million in Q2 2026.