BXP
BXP, Inc.
$69.48
Real Estate Investment Trust
85%
P/FFO × Office REIT Multiple
Mild
·
Conviction
Fair Value
Trading 12.3% below fair value
You pay
$69.48
Bear
$62.18
Fair
$79.26
Bull
$96.34
Bear
$62.18
-10.5%
$7.42 FFO × 10x
Fair
$79.26
+14.1%
$7.42 FFO × 13x
Bull
$96.34
+38.7%
$7.42 FFO × 16x
Key Value Driver
FFO/share ($7.42) × office P/FFO multiple
Implied Market Multiple
9.4x
Summary
Our base-case estimate uses P/FFO × Office REIT Multiple. We then blend that result with the average analyst price target of $70.09 from 43 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $79.26 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-based valuation: $52.18 (37% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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