Boston Properties, Inc. (NYSE:BXP)
The Company is a fully integrated, self-administered and self-managed real estate investment trust and an owner and developer of office properties in the U.S. Properties.
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This CAPS account is tracking the 200 highest yielding S&P stocks.
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Changing risk environment has created opportunity for REIT shops.
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I am adding this stock today 6/26/2007 to my watchlist as a way of hedging my portfolio based on personal experience. This belief is based upon that currently we are 63-66 months into an economical cycle that typically last only 60 months historically. We have been in a bull market for 4.5 years. With that said the major factor in both my trades in investments is how much downside. Early in the summer during bull markets I have learned to expect some correction or atleast stocks trading flat until labor day.
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See FWLT commentary.
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better growth potential
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just wait until the boston commercial market follows the boston residential market down the drain..
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ride the index back up
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can't beat sucess and dividends and property values to increase
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Significant exposure in their portfolio to strongly over-valued markets. With a softening real estate market those are the most likely markets to have the biggest losses.
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Excellent portfolio in good markets not dependent on housing.
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Boston Properties (NYSE: BXP) is a self-managed and self-administered REIT (real estate investment trust) company that owns, develops, redevelops, acquires, manages a diverse portfolio of 124 office properties, including 106 Class A office properties; two hotels and two retail centers. BXP’s office properties are located in five major markets, viz. Boston, Midtown Manhattan, Washington D.C., San Francisco and Princeton, N.J. and generated 89.5% of the total revenues for the third quarter 2006. Of these, Midtown Manhattan and Boston resulted in 38.2% and 25.7% of total rental income respectively for the third quarter 2006.
The US office REITs industry has witnessed a continued recovery, led by steady job growth, increasing demand, tame levels of new supply and economic expansion, altogether driving national office vacancies down from the 18% peak in fourth quarter of 2003 to around 13% in third quarter of 2006. Similar trend has been noticed in Boston, Massachusetts and New York City that witnessed improvement in metropolitan office area-wise employment of 1.2% and 0.9% respectively on Y-o-Y basis for Nov. 06. During 2007, both New York and Boston will continue to see positive net absorption, with low new supply and positive rent rolls.
BXP’s operating strategy is three-fold. i.e. operating in supply-constrained markets, selling selective assets in current high prices to substantially invest in new development opportunities for long-term earnings growth and acquiring Class A office properties and land for further expansion of portfolio. This can be witnessed by BXP’s acquisition of a parcel of land located in Waltham, Massachusetts; two Class A office properties located in San Jose, California in 2006. In addition, sales proceeds of $1.28 billion from the office tower at 5 Times Square in New York can be further be used by BXP for acquisition or new developments.
The company’s office lease expiry comprises only 5% of its total portfolio and roll-down, assuming the release of all vacant space below 7% for 2007. BXP’s exposure to strong markets like New York, Boston, and Washington DC, development and redevelopment pipelines, lower office lease expiry and lease-up opportunities will benefit revenues in 2007 and make it an attractive buy even at current levels.
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Using MACD
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REIT with heavy concentration of assets in prime-time metro areas. Both residential apartments and commercial space in the hottest areas in the country right now. Single family housing is overbuilt and the market is cooling - but high end commercial and apartment space is still growing and property values continue to climb.
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Well managed REIT with huge institutional ownership. May be subject to profit taking flucuations. Steady performer with Class A holdings in some of the top markets
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Good office REITwith huge run up the last 2 years, needs to pull back to be more in line with normal values for a REIT
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