BXP: Piper Sandler maintains Overweight, PT down to $80 from $85.

BXP: Piper Sandler maintains Overweight, PT down to $80 from $85.

Boston Properties (BXP) received a mixed reception from Piper Sandler analysts following its Q2 2025 earnings report. While the investment bank maintained its Overweight rating on the stock, it adjusted its price target downward to $80 from $85. The move comes despite the company reporting a significant earnings per share (EPS) beat, with actual EPS coming in at $0.56 compared to the forecasted $0.41 [2].

Despite the positive earnings surprise, BXP’s stock fell by 3.62% in after-hours trading, closing at $70.43. The market reaction may reflect broader concerns in the office real estate sector, overshadowing the company’s raised full-year guidance. Key Takeaways BXP reported a 36.59% EPS surprise for Q2 2025. The company raised its full-year 2025 guidance to $6.84-$6.92 per share. Despite strong earnings, BXP stock declined by 3.62% post-announcement. Leasing activity was robust, with over 1.1 million square feet completed in Q2. Portfolio occupancy declined slightly, affecting investor sentiment. Company Performance Boston Properties demonstrated strong financial performance in Q2 2025, with a notable EPS beat and revenue exceeding expectations. The company continues to benefit from its focus on premier workplace segments, which are outperforming the broader office market. However, a slight decline in portfolio occupancy and broader market concerns may have tempered investor enthusiasm. Financial Highlights Revenue: $868.5 million, surpassing the forecast of $849.66 million. Earnings per share: $0.56, exceeding the forecast of $0.41. FFO per share: $1.71, $0.05 above forecast. Earnings vs. Forecast Boston Properties reported an EPS of $0.56, significantly above the forecasted $0.41, resulting in a 36.59% surprise. This performance marks a substantial beat compared to previous quarters, highlighting the company’s operational strength and effective cost management. Market Reaction Despite the positive earnings surprise, BXP’s stock fell by 3.62% in after-hours trading. The decline may reflect broader market concerns or investor caution regarding the office real estate sector. Notable for income investors, the company offers a 5.57% dividend yield and has maintained dividend payments for 29 consecutive years. The stock’s current price is within its 52-week range of $54.22 to $90.11, suggesting ongoing volatility. Outlook & Guidance BXP raised its full-year 2025 guidance to $6.84-$6.92 per share, reflecting confidence in its strategic initiatives and market positioning. The company anticipates occupancy improvements and revenue growth through 2026-2027, driven by strong demand in key markets. Executive Commentary CEO Owen Thomas highlighted the recovery in premier workplace leasing, stating, "Premier workplace leasing and capital markets continue to recover from their lows in 2024." President Doug Linde emphasized the supply constraints in certain submarkets, while CFO Mike LaBelle noted the growing difference between leased and occupied square footage. Risks and Challenges Declining portfolio occupancy could impact future revenue. Broader economic uncertainties may affect investor confidence. Potential challenges in executing development projects within budget. Competition in the office real estate sector remains intense. Fluctuating demand due to changing work patterns post-pandemic. Q&A Analysts expressed interest in the 343 Madison Avenue project and its potential impact on BXP’s portfolio. Discussions also focused on AI’s influence on office demand and the company’s capital allocation strategies. The positive outlook on New York City’s real estate market was a key topic of interest. Full transcript - BXP Inc (BXP) Q2 2025: Conference Operator: Day, and thank you for standing by. Welcome to Q2 twenty twenty five BXP Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your first speaker, Helen Hahn, Vice President of Investor Relations. Please go ahead. Helen Hahn, Vice President of Investor Relations, BXP: Good morning, and welcome to BXP’s second quarter twenty twenty five earnings conference call. The press release and supplemental package were distributed last night and furnished on Form eight ks. In the supplemental package, BXP has reconciled all non GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G. If you did not receive a copy, these documents are available in the Investors section of our website at investors.bxp.com. A webcast of this call will be available for twelve months. At this time, we would like to inform you that certain statements made during this conference call, which are not historical, may constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act. Although BXP believes the expectations reflected in any forward looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors and risks that could cause actual results to differ materially from those expressed or implied by forward looking statements were detailed in yesterday’s press release and from time to time in BXP’s filings with the SEC. BXP does not undertake a duty to update any forward looking statements. I’d like to welcome Owen Thomas, Chairman and Chief Executive Officer Doug Linde, President and Mike LaBelle, Chief Financial Officer. During the q and a portion of our call, Ray Ritchie, Senior Executive Vice President and our regional management teams will be available to address any questions. We ask that those of you participating in the q and a portion of the call to please limit yourself to one and only one question. If you have an additional query or follow-up, please feel free to rejoin the queue. Would now like to turn the call over to Owen Thomas for his formal remarks. Owen Thomas, Chairman and Chief Executive Officer, BXP: Thank you, Helen, and good morning to all of you. Our results in the second quarter demonstrate BXP’s continued strong execution and provide further evidence of the property and capital market recovery underway in our sector. Our FFO per share was $05 above our forecast and $04 above market consensus for the second quarter, primarily driven by improved operations. As a result, we’re also raising the mid midpoint of our earnings guidance for the full year 2025 by $02 We completed over 1,100,000 square feet of leasing in the quarter, bringing our total leasing in 2025 to 2,200,000 square feet. Over the last four quarters, our leasing volume of 5,700,000 square feet was 18% higher than the prior four quarters. We continue to increase the preleasing of our development pipeline with 200,000 square feet of development leasing this quarter. Now regarding the operating environment, BXP’s leasing activity remains vibrant across many, though not all, submarkets. As discussed before, the primary drivers of BXP leasing activity are corporate confidence and the in person work behavior of our clients. Corporations generally see a favorable environment for their businesses unfolding this year with a pro growth tax bill recently passed in congress, less regulation, geopolitical risk relief in certain regions, resolution of US tariff agreements with many important nations, and the possibility of lower short term interest rates. As a proxy for corporate health, 2025 S and P 500 earnings growth projections, though revised lower since the beginning of the year, remain healthy at seven to 9%. Investors are confirming this view with US equity market indices achieving new highs and credit spreads on US investment grade bonds trading at or near ten year lows. Further, in person work behaviors continue to improve. JLL recently completed a study of

References:
[1] https://seekingalpha.com/news/4477306-piper-sandler-downgrades-avalonbay-communities-essex-property-trust-after-earnings
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-bxp-beats-q2-2025-eps-forecast-stock-dips-93CH-4160831