Boston Properties (BXP) closed out FY 2025 with Q4 revenue of US$923.4 million and basic EPS of US$1.57, while funds from operations reached US$280.2 million, or US$1.77 per share, putting the focus firmly on cash generation from its portfolio. Over the past year, the company has seen revenue move from US$852.4 million in Q4 FY 2024 to US$923.4 million in Q4 FY 2025, alongside a shift in basic EPS from a loss of US$1.44 to a profit of US$1.57. This sets the backdrop for how you might weigh its income profile against growth expectations. With an 8.2% trailing net margin and earnings heavily influenced by a very large prior-year swing, the quality and sustainability of those margins are front and center for investors.

See our full analysis for BXP.

With the headline numbers on the table, the next step is to see how BXP’s latest results line up against the widely followed narratives around its growth prospects, income appeal, and risk profile, and where those stories may need updating.

FFO Holds Near US$1.1b While EPS Swings Around

• Over the last 12 months, funds from operations came in at US$1.1b, with FFO per share of US$6.88. This compares with quarterly FFO between US$260.6 million and US$283.9 million, and quarterly FFO per share between US$1.65 and US$1.82 across the periods shown.
• What stands out for a bullish view is that cash style FFO looks more stable than basic EPS, which ranged from a loss of US$1.44 to a profit of US$1.57 across the last six reported quarters, even though:
  • Trailing net income excluding extra items over the last 12 months was US$276.8 million, compared with a loss of US$228.9 million in Q4 FY 2024. This highlights how accounting earnings have moved around far more than FFO.
  • Total revenue on a trailing basis reached US$3.4b, while quarterly revenue sat between US$846.3 million and US$923.4 million in the periods provided. The main story here is how earnings and FFO translate that revenue rather than big swings in the top line.

8.2% Net Margin Meets Weak Interest Coverage

• The trailing net profit margin was 8.2% compared with 0.4% a year earlier. That improvement sits next to a flagged risk that interest payments were not well covered by earnings over the same period.
• Bears often focus on balance sheet pressure, and the data gives them material points to work with while also adding some nuance:
  • On one hand, the main risk highlighted is that interest coverage is weak. Even with US$276.8 million of trailing net income excluding extra items, lenders were not well covered by those earnings.
  • On the other hand, earnings over the last year were described as much higher year over year. Critics therefore need to factor in that the latest 8.2% margin is not the same earnings base that produced the earlier 0.4% margin, even if coverage remains a concern.

High 36.7x P/E, Yet Below DCF Fair Value

• The shares trade on a trailing P/E of 36.7x compared with 21.8x for the Global Office REITs industry and 28.6x for peers. The current share price of US$64.15 sits below an analyst price target of US$77.80 and a DCF fair value of about US$97.13.
• For a more optimistic take, some investors point to valuation gaps alongside income and growth forecasts, and the numbers give that argument some backing and some pushback:
  • Supportive for bulls, the stock is described as trading about 34% below one fair value estimate and also below the DCF fair value, with a 4.36% dividend yield and earnings forecast to grow about 10% per year, even if that growth rate is below the wider US market forecast of 16.1%.
  • Challenging that same bullish angle, the high 36.7x P/E relative to office REIT peers means part of the current price already reflects higher expectations. Recent earnings also included an US$87.8 million one off gain that flatters the trailing numbers used in some of those valuation checks.

To see how this mix of premium P/E, discounted DCF fair value and dividend income fits into the bigger story, have a look at the full narrative and valuation breakdown. 📊 Read the full BXP Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on BXP's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

BXP’s weak interest coverage, reliance on more volatile accounting earnings, and relatively high 36.7x P/E all point to meaningful balance sheet and valuation pressure.

If that mix makes you uneasy about taking on more debt risk, check out our solid balance sheet and fundamentals stocks screener (386 results) to focus on companies built on sturdier financial footing right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.