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On Tuesday, Evercore ISI analysts reiterated an Outperform rating for Boston Properties Inc. (NYSE: NYSE:BXP) and maintained a $75.00 price target. The reaffirmation follows a dinner with the company’s senior management, including CEO Owen Thomas, CFO Mike LaBelle, and Head of NY Region Hilary Spann, ahead of the NAREIT conference. According to InvestingPro analysis, Boston Properties, with a market capitalization of $11.95 billion, appears undervalued at current levels and offers a compelling 5.8% dividend yield.
The discussion highlighted Boston Properties’ strong leasing demand in the second quarter, with a notable increase in its leasing pipeline, which is now 10% higher than the 2.8 million square feet reported in late April. The company is experiencing robust demand in New York City, identified as the strongest market, followed by Boston’s Back Bay area. While the West Coast remains generally soft, San Francisco is showing signs of improvement with real AI demand. InvestingPro data shows the company has maintained dividend payments for 29 consecutive years, demonstrating consistent shareholder returns despite market cycles. Get access to more exclusive insights and 6 additional ProTips with an InvestingPro subscription.
Boston Properties is also focusing on its future development project at 343 Madison, with significant interest from prospective tenants. The company aims to finalize a letter of intent in the coming months, targeting an 8% yield on cost. Additionally, the 360 Park Avenue project, expected to be delivered in late 2025, is in active discussions with tech tenants for nine floors, potentially reducing project risks. The company’s revenue grew 3.47% in the last twelve months, with a healthy current ratio of 1.17 indicating strong liquidity.
The company is actively marketing several land parcels for sale, aiming to reduce leverage and improve funds from operations (FFO) over the next few years. Boston Properties is targeting $400 million in land sales, with up to $100 million potentially under contract in the near term. However, refinancing costs and a challenging transaction market remain concerns for future FFO growth. InvestingPro analysts expect the company to return to profitability this year, with detailed analysis available in the comprehensive Pro Research Report.
In other recent news, Boston Properties Inc. reported its first-quarter 2025 earnings, showing an earnings per share (EPS) of $0.39, which surpassed the forecast of $0.37. The company’s revenue also exceeded expectations, reaching $865.2 million compared to the forecast of $835.53 million. Despite these positive earnings results, Boston Properties’ stock saw a decline in after-hours trading. Piper Sandler maintained an Overweight rating on Boston Properties, keeping the price target at $85.00, citing potential growth in the office sector due to limited new construction and increasing demand for high-quality office spaces. Meanwhile, Truist Securities revised its outlook on the company, cutting the 12-month price target to $71.00 from $75.00, while maintaining a Hold rating. This adjustment was influenced by significant tenant move-outs expected in 2025. Truist’s analyst noted a potential return to positive normalized funds from operations (FFO) per share growth in 2026. The company has also seen a rise in leasing activity, with potential leases increasing by over 200,000 square feet since the first quarter earnings report of 2025.
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