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Research Alert: CFRA Lowers Opinion On Shares Of Bxp, Inc. From Hold To Sell

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We decrease our target by $10 to $51, 7.5x our 2026 FFO estimate as occupancy headwinds remain with large capex increases now planned to improve leasing. We lower our 2026 FFO forecast by $0.05 to $6.82 and 2027's by $0.22 to $7.03. BXP's most concerning headline in Q1 was the increase in capex planned to drive 2026 leasing going from $220M-$250M all the way up to $400M. In our view, this indicates that vacant properties likely need significant concessions to tenants or redevelopment spending from BXP to improve structurally impaired occupancy. Management believes BXP stock is attractive now but unable to repurchase due to high leverage, which we consider concerning given the weakness in leasing and negative re-leasing spreads. Leasing improved in Q1 in San Francisco, but remains negative in Boston/New York (BXP's largest CBD markets). We expect further disposition activity ($400M more this year) and share issuance in 2026, with the goal of reducing leverage.

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