BXP Stock Gains 15.4% in Six Months: Will the Trend Last?

Shares of BXP Inc. BXP have gained 15.4% over the past six months, outperforming the industry's growth of 0.2%.

BXP’s assets in a few select markets, a well-diversified tenant base, strategic expansions, prudent capital-management practices and a solid balance sheet position bode well for long-term growth.

In early September 2025, BXP announced a strategic roadmap to boost earnings growth and facilitate expansion of capacity for investments through deleveraging. However, the office REIT embarked on a dividend cut as a major driver to enhance reinvestment in value-accretive investments and bring about balance sheet efficiency.

Analysts seem bullish on this Zacks Rank #3 (Hold) stock, with its Zacks Consensus Estimate for 2025 funds from operations per share being revised marginally northward over the past two months to $6.87.

Factors Behind BXP Stock Price Surge: Will the Trend Last?

BXP's portfolio of premier office assets, concentrated in a few select high-rent, high-barrier-to-entry geographic markets and a solid tenant base enables it to generate stable rental revenues, even during periods of economic downturn. The office REIT’s tenant roster includes several industry bellwethers, such as Salesforce, Biogen, Google, Bank of America, Microsoft and Wellington Management. Its long-term leases with tenants having a solid credit profile assure stable cash flows.

Moreover, the return-to-office policies implemented by many companies, coupled with a relatively low unemployment rate and consistent job growth, are likely to drive the demand for BXP's strategically located, high-quality office properties. In the second quarter of 2025, the company executed 91 leases totaling around 1.1 million square feet with a weighted average lease term of 9.4 years.

BXP has been focusing on successfully executing its capital reallocation strategy. In particular, the company is boosting its portfolio quality through repositioning initiatives, including acquisitions and the development of properties in core markets and shedding properties in non-core markets. Such moves highlight the company’s prudent capital management practices and relieve the pressure on its balance sheet.

Moreover, the company has an encouraging development and redevelopment pipeline, which bodes well for its long-term growth. As of June 30, 2025, inclusive of the commencement of construction of 343 Madison Avenue, BXP has 11 properties under its development and redevelopment pipeline, with a share of estimated total investment aggregating around $4.4 billion. Such development efforts will likely aid future NOI growth.

BXP has a healthy balance sheet position with ample liquidity. The company exited the second quarter of 2025 with cash and cash equivalents of $447 million. BXP’s share of net debt to EBITDAre (annualized) was 8.18X and the fixed charge coverage ratio was 2.23 times as of the same date. Given its solid financial position and prudent capital management, BXP seems well-poised to navigate any economic uncertainty and industry choppiness and capitalize on growth opportunities.

Key Risks for BXP

High competition from developers, owners and operators of office properties and a huge development outlay concern BXP. Moreover, high debt burden and elevated interest expenses add to its woes.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are VICI Properties VICI and Terreno Realty TRNO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for VICI Properties’ 2025 FFO per share has been raised marginally over the past month to $2.39.

The consensus estimate for TRNO’s current-year FFO per share has moved marginally northward in the past two months to $2.61.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research