BXP: Development Risk Limits Upside (Rating Downgrade)
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Seeking Profits5.11K FollowersFollow5ShareSavePlay(9min)CommentsSummaryBXP (BXP) is downgraded to 'hold' as shares reach my $70 target amid persistent office demand concerns and capital spending risks.Near-term leasing momentum and well-staggered maturities support occupancy gains, but elevated net leverage (8.2x) and refinancing needs constrain upside.Development pipeline, especially 343 Madison, poses execution risk; asset sales and a partner are critical to funding without additional debt.Dividend yield is ~4% with over 2x coverage, but further increases are unlikely until leverage normalizes, likely post-2028. Vadym Terelyuk/iStock via Getty Images Shares of BXP (BXP) have been a poor performer over the past year, losing about 12% of their value. Ongoing concerns about long-term office demand and BXP’s capital spending have weighed on shares, and the company evenThis article was written bySeeking Profits5.11K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You