BXP, Inc. BXP recently announced that it has signed leases totaling around 2.3 million square feet in the fourth quarter of 2024, with a weighted average lease term of 10.3 years. This brings the company’s total leasing activity for 2024 to approximately 5.6 million square feet.
The leasing volume represents BXP's strongest quarterly leasing since the second quarter of 2019, with the leased amount being around 130% of its historical 10-year average for the fourth quarter.
During the fourth quarter of 2024, some of the notable leases executed by the company include a 413,000 square foot renewal with global law firm Ropes & Gray at Prudential Tower in Boston, MA; a 246,000 square foot renewal and expansion with KnitWell Group at 7 Times Square in New York City; and a total of approximately 560,000 square feet of leases across its California regions of Los Angeles and San Francisco.
BXP’s leasing activity through the end of 2024 consisted of 291 leases, with a weighted-average lease term of 9.8 years. This weighted-average lease term remains higher than long-term averages, suggesting that clients are making long-term investments in high-quality spaces.
Per Owen Thomas, chairman and CEO of BXP, “Premier workplaces continue to command an outsize portion of the leasing demand throughout our regions. BXP has capitalized on client preferences to locate in accessible, high-quality, and highly amenitized properties to secure significant leasing in the fourth quarter, and throughout 2024.”
BXP: In a Nutshell
The healthy tenant demand for premier office assets and the company's ability to offer such spaces will likely drive decent leasing activity. With encouraging leases executed over the past few quarters, BXP remains well-positioned to ride the growth curve.
BXP boasts a portfolio of Class A office assets in a few select markets of the United States. A diverse tenant base ensures stable revenues. A healthy balance sheet bodes well for growth. BXP has been boosting its portfolio quality through acquisitions and the development of properties in core markets and shedding properties in non-core markets.
BXP’s Q4 Results
Recently, the company reported fourth-quarter 2024 funds from operations (FFO) per share of $1.79, which met the Zacks Consensus Estimate. On a year-over-year basis, FFO per share fell 1.6%. The quarterly results reflected healthy leasing activity. However, higher interest expenses hurt the results to some extent. BXP also issued its guidance for 2025 FFO per share.
Over the past six months, shares of this Zacks Rank #3 (Hold) company have gained 3.3%, outperforming the industry’s decline of 2.2%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Welltower WELL and Terreno Realty TRNO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s 2024 FFO per share is pinned at $4.30, which suggests year-over-year growth of 18.1%.
The Zacks Consensus Estimate for Terreno’s 2024 FFO per share stands at $2.42, which indicates an increase of 9% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
