Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, office REIT Boston Properties
With that in mind, let's take a closer look at Boston Properties' business and see what CAPS investors are saying about the stock right now.
Boston Properties facts
|Headquarters (Founded)||Boston (1970)|
|Market Cap||$15.8 billion|
|Trailing-12-Month Revenue||$1.6 billion|
Co-Founder/Chairman/CEO Mortimer Zuckerman
CFO Michael LaBelle
|Return on Equity (Average, Past 3 Years)||3.7%|
|Cash/Debt||$747.3 million / $7.9 billion|
SL Green Realty
Vornado Realty Trust
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Late last month, investorpoet2 touched on Boston Properties' seemingly unsustainable valuation: "High quality REIT with a strong balance sheet, but headwinds in real estate are not over. BXP has a [funds from operations yield] of 4.28% and a dividend of 1.90%, which indicate lackluster returns for the next several years."
In fact, Boston Properties currently sports a particularly lofty price-to-cash flow of 34. That represents a premium to other office REITs like Mack-Cali (14), SL Green (20), and Vornado (26).
CAPS member kurtdabear elaborates on the Boston Properties bear case:
Office vacancies are high and rising in most of BXP's markets, with Washington, D.C. being the main exception (for obvious reasons); and dividends are running way ahead of income. Something's got to give, and I think it's going to be BXP's value, as rents and property values begin to erode from lack of demand.
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