Boston Properties (BXP) Stock Forecast & Price Target

BXP Inc. is strategically positioned in premier markets, with management highlighting that their top 11% of New York office buildings have experienced significant rent increases since 2018, contrasting with a stagnant overall market. The company's exposure to floating rate debt, although higher than usual at 13.1%, presents an opportunity for enhanced earnings in a declining interest rate environment, potentially adding to profitability with each basis point cut in SOFR. Additionally, projected same-store NOI growth of +2.4% for 2027 may surpass expectations if BXP successfully implements its leasing and occupancy initiatives, aligning with the trend of corporate earnings outpacing rent growth in high-quality office segments.

BXP Inc. is projected to experience a 3.8% year-over-year decline in normalized funds from operations (FFO) in 2025, with only modest growth of 1.6% anticipated in 2026. The company's recent decision to lower its common dividend reflects concerns over future FFO growth, which is expected to remain muted amidst pressures from development funding and asset sales. Additionally, the outlook suggests that occupancy growth may not significantly offset these declines, contributing to a negative sentiment surrounding the stock's performance.