Evercore ISI Cuts Price Target on BXP to $65 From $67, Keeps In Line Rating

Evercore ISI reduced its price target for BXP from $71 to $67, maintaining an 'In Line' rating. Scotiabank also lowered its target from $76 to $73, keeping a 'Sector Outperform' rating. BXP's stock price was $63.17, down 1.19%.

BXP reported Q2 2026 earnings exceeding expectations and raised its full-year FFO outlook, citing improved business fundamentals. The company's investment narrative hinges on high-quality office and life science space in key markets, with risks tied to new developments and leasing. BXP's $1.2B construction loan for 343 Madison Avenue highlights both potential and risks. Analysts' earnings estimates for 2029 range from $290.1M to $343.6M, with revenue projections between $3.7B and $3.8B.

BXP closed a $1.2B loan for its $2B 343 Madison Ave project, reducing equity needs to $341M. The 4-year loan at Term SOFR + 2.50% (declining to +2.25% upon milestones) funds 60% of costs. BXP targets 7.5%-8% returns, pending leasing and construction progress. The project is 50% pre-leased, with delivery expected in late 2029.

Strategic Performance and Market Dynamics BXP delivered a strong second quarter, exceeding FFO guidance by $0.08 and raising the 2026 midpoint by $0.05, driven by faster-than-expected leasing and occupancy gains. Management attributes the leasing momentum to a 'very healthy environment' for premier workplaces, noting that AI is acting as a significant tailwind by driving space expansions and upgrades among tech and professional service firms.

BXP announced it secured a $1.2B construction loan for its 930,000 sq ft, 46-story office tower at 343 Madison Ave in Midtown, with a four-year term plus a one-year extension option, from Wells Fargo, Bank of America Securities, BNY Mellon and J.P. Morgan. Completion is set for 2029; the project is 50% pre-leased. BXP reported Q2 2026 FFO of $283.4M ($1.78/share) and revenue of $895.7M.

Boston Properties (BXP) is marketing the 7 Times Square ground lease via Eastdil Secured, hiring Will Silverman and Gary Phillips. BXP expects proceeds of $700 million to $750 million, with bids due soon. The 1.2M sq ft tower has a 99-year lease and is 91% occupied. The deal would test Times Square office demand.