BXP
BXP, Inc.
$60.29
Real Estate Investment Trust
85%
P/FFO × Office REIT Multiple
Moderate
·
Conviction
Fair Value
Trading 24.3% below fair value
You pay
$60.29
Bear
$62.57
Fair
$79.64
Bull
$96.71
Bear
$62.57
+3.8%
$7.42 FFO × 10x
Fair
$79.64
+32.1%
$7.42 FFO × 13x
Bull
$96.71
+60.4%
$7.42 FFO × 16x
Key Value Driver
FFO/share ($7.42) × office P/FFO multiple
Implied Market Multiple
8.1x
Summary
Our base-case estimate uses P/FFO × Office REIT Multiple. We then blend that result with the average analyst price target of $67.70 from 42 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $79.64 per share.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
Dividend yield of 5.1% is unusually high — make sure the company generates enough cash to keep paying it.
Dividend-based valuation: $57.40 (32% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $67.70 (from 42 analysts). Our estimate is 25% above the consensus -- consider that gap carefully.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify