Boston Properties (BXP) Stock Forecast & Price Target

BXP Inc. has a portfolio of over 180 properties, primarily consisting of office buildings in key metropolitan areas, which positions the company to benefit from the strong performance of premier workplaces, particularly in New York, where rental rates for these assets have risen substantially since 2018. The company's floating rate debt exposure, while higher than typical, could yield additional financial benefits, as each 25 basis point cut in the Secured Overnight Financing Rate (SOFR) is projected to increase earnings. Additionally, the outperformance of trophy office assets in gateway markets indicates robust leasing activity, occupancy, and rent growth, further enhancing BXP's financial outlook.

BXP Inc. is projected to experience a 3.8% year-over-year decline in normalized funds from operations (FFO) in 2025, indicating potential financial strain. Furthermore, the company's decision to lower the common dividend raises concerns about its ability to generate robust FFO growth, which is estimated to be modest at only 1.6% in 2026. This combination of declining FFO in the near term and muted growth expectations has contributed to a negative sentiment around BXP's stock performance.