BXP
BXP, Inc.
$64.70
Real Estate Investment Trust
85%
P/FFO × Office REIT Multiple
Moderate
·
Conviction
Fair Value
Trading 22.2% below fair value
You pay
$64.70
Bear
$65.26
Fair
$83.19
Bull
$101.12
Bear
$65.26
+0.9%
$7.42 FFO × 10x
Fair
$83.19
+28.6%
$7.42 FFO × 13x
Bull
$101.12
+56.3%
$7.42 FFO × 16x
Adjust Assumptions
13.0x
$
Key Value Driver
FFO/share ($7.42) × office P/FFO multiple
Implied Market Multiple
8.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (43 analysts)
$72.36
Divergence from AlphaVal
15%
Summary
At $7.42 FFO/share with a 13x office REIT multiple, the base-case value is $83.19 per share. Dividend yield: 4.3%. DDM cross-check: $52.18.
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