BXP, Inc. (NYSE: BXP)

Sector: Real Estate Industry: REIT - Office CIK: 0001037540
Market Cap 9.52 Bn
P/B 1.55
P/E 10.44
P/S 3.12
ROIC (Qtr) 4.61
Div Yield % 7.62
Rev 1y % (Qtr) 1.43
Total Debt (Qtr) 17.35 Bn
Debt/Equity (Qtr) 3.47
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About

Boston Properties Inc., or BXP, is a prominent player in the real estate industry, specifically as a fully integrated, self-administered, and self-managed real estate investment trust (REIT). This company primarily operates in the United States, with a focus on six dynamic gateway markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. As of December 31, 2023, BXP boasts a market capitalization of over $53 billion, making it one of the largest publicly traded office REITs in the country. BXP generates revenue through...

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Investment thesis

Bull case

  • Operating cash flow of 1.22B provides exceptional 23.57x coverage of minority interest expenses 51.80M, showing strong core operations.
  • Operating cash flow of 1.22B provides strong 27.78x coverage of stock compensation 43.96M, indicating sustainable incentive practices.
  • Strong operating cash flow of 1.22B provides 6.77x coverage of SG&A expenses 180.31M, showing efficient operational cost management.
  • Cash position of 938.73M provides exceptional 18.12x coverage of minority interest expenses 51.80M, indicating strong liquidity.
  • Cash position of 938.73M fully covers payables of 484.80M by 1.94x, showing strong vendor relationship management.

Bear case

  • Operating cash flow of 1.22B barely covers its investment activities of (1.37B), with a coverage ratio of -0.89, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.22B provides thin coverage of dividend payments of (692.23M) with a -1.76 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 938.73M provide limited coverage of acquisition spending of (99.99M), which is -9.39x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of (61.65M) provides weak coverage of capital expenditures of 1.28B, with a -0.05 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 460.50M show weak coverage of depreciation charges of 906.96M, with a 0.51 ratio indicating high capital intensity and potential reinvestment needs.

Legal Entity Breakdown of Revenue (2024)

Peer comparison

Companies in the REIT - Office
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BXP BXP, Inc. 9.52 Bn 10.44 3.12 17.35 Bn
2 ARE Alexandria Real Estate Equities, Inc. 9.27 Bn -6.45 3.06 12.40 Bn
3 VNO Vornado Realty Trust 5.56 Bn 6.60 3.07 7.89 Bn
4 KRC Kilroy Realty Corp 3.77 Bn 13.65 3.39 4.59 Bn
5 CDP Copt Defense Properties 3.33 Bn 46.00 5.75 2.49 Bn
6 SLG Sl Green Realty Corp 2.75 Bn -24.56 2.74 5.97 Bn
7 HIW Highwoods Properties, Inc. 2.49 Bn 15.83 3.09 3.55 Bn
8 CUZ Cousins Properties Inc 2.44 Bn 24.76 4.97 3.34 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.89 0.66
EV to Cash from Ops. EV/CFO 18.37 35.35
EV to Debt EV to Debt 1.33 1.60
EV to EBIT EV/EBIT 17.35 -177.85
EV to EBITDA EV/EBITDA 13.01 15.22
EV to Free Cash Flow [EV/FCF] EV/FCF -446.35 -21.54
EV to Market Cap EV to Market Cap 2.43 14.69
EV to Revenue EV/Rev 7.58 6.06
Price to Book Value [P/B] P/B 1.55 0.76
Price to Earnings [P/E] P/E 10.44 3.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.29 -2.81
Dividend Payout Ratio % Div Payout % (Qtr) -284.40 86.83
Dividend per Basic Share Div per Share (Qtr) 3.64 1.13
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -935.73 -31.14
Interest Coverage Int. cover (Qtr) 0.70 -0.15
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -21.98 -13.82
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -36.21 8.92
Dividend Growth (1y) % Div 1y % (Qtr) -7.14 -13.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -53.62 -81.02
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.61 -59.28
EBIT Growth (1y) % EBIT 1y % (Qtr) -53.62 -85.68
EBT Growth (1y) % EBT 1y % (Qtr) -155.20 -24.55
EPS Growth (1y) % EPS 1y % (Qtr) -155.41 393.08
FCF Growth (1y) % FCF 1y % (Qtr) -133.10 148.67
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.43 -2.47
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.13
Cash Payout Ratio Cash Payout (Qtr) 0.28 0.24
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 3.47 1.46
Interest Cover Ratio Int Coverage (Qtr) 0.70 -0.15
Times Interest Earned Times Interest Earned (Qtr) 0.70 -0.15
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 39.50 29.81
EBIT Margin % EBIT Margin % (Qtr) 13.29 -4.47
EBT Margin % EBT Margin % (Qtr) -5.79 -25.12
Gross Margin % Gross Margin % (Qtr) 60.90 60.66
Net Profit Margin % Net Margin % (Qtr) -5.80 -26.43