Office Income! What To Make Of Boston Properties' 6% Yield

Dec. 07, 2022 11:03 AM ETBXP, Inc. (BXP) StockBXP19 Comments

Summary

  • Office REITs are in a tough space. The pandemic has worsened a secular increase in vacancy rates, eroding pricing power and other financial metrics.
  • Boston Properties is different. The company has top-tier tenants, buildings in the best locations, and a high occupancy rate.
  • Unfortunately, industry and macroeconomic headwinds are causing investors to flee.
  • Despite a highly attractive valuation and a high dividend yield, I do not recommend BXP to long-term REIT investors.

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Introduction

Nobody likes offices. Well, maybe some do, but overall, it's not the best place to spend time. However, there's a way to get people interested in offices. Boston Properties (NYSE:BXP) is America's largest office real estate investment

This article was written by

42.89K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

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.

This article serves the sole purpose of adding value to the research process. Always take care of your own risk management and asset allocation.

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