BXP: Priced Like A Growing Money Market
BXP, Inc. is an office REIT with "premier" properties in major U.S. metropolitan areas.The recent Fed rate cut and potential future cuts should lower interest expense and support new acquisitions.Its large cap clients give it durability in times of weakness, with leasing activity tracking the pace of earnings growth.Premier real estate is a narrow focus, and the big question is where they will continue to make favorable acquisitions over extended time.At the current price, investors get something like a money market with modest growth, which makes for a good Hold.Richard Drury BXP, Inc. is an office REIT with properties in the largest metropolitan areas of the United States. As with many REITs, we look at the 50-BPS Fed rate cut two weeks ago , and we ask: What's the opportunity here?