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Boston Properties Financial Strength

: 3 (As of Jun. 2022)
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Boston Properties has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Boston Properties Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Boston Properties's Interest Coverage for the quarter that ended in Jun. 2022 was 2.62. Boston Properties's debt to revenue ratio for the quarter that ended in Jun. 2022 was 4.56. As of today, Boston Properties's Altman Z-Score is 0.88.


Competitive Comparison

For the REIT - Office subindustry, Boston Properties's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Boston Properties Financial Strength Distribution

For the REITs industry and Real Estate sector, Boston Properties's Financial Strength distribution charts can be found below:

* The bar in red indicates where Boston Properties's Financial Strength falls into.



Boston Properties Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Boston Properties's Interest Expense for the months ended in Jun. 2022 was $-104 Mil. Its Operating Income for the months ended in Jun. 2022 was $273 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $13,939 Mil.

Boston Properties's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*272.585/-104.142
=2.62

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Boston Properties Inc interest coverage is 2.49, which is low.

2. Debt to revenue ratio. The lower, the better.

Boston Properties's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(165 + 13939.248) / 3095.708
=4.56

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Boston Properties has a Z-score of 0.88, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.88 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Boston Properties  (NYSE:BXP) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Boston Properties has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Boston Properties Financial Strength Related Terms

Thank you for viewing the detailed overview of Boston Properties's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Boston Properties Business Description

Boston Properties logo
Address
800 Boylston Street, Suite 1900, Prudential Center, Boston, MA, USA, 02199-8103
Boston Properties owns over 180 properties consisting of approximately 47 million rentable square feet of space. The portfolio is dominated by office buildings and is spread across major cities such as New York, Boston, San Francisco, and the Washington, D.C., region, along with a newly established presence in Los Angeles. The real estate investment trust also owns limited retail, hotel, and residential properties.
Executives
Spann Hilary J. officer: Executive Vice President 599 LEXINGTON AVENUE 16TH FLOOR NEW YORK NY 10022
Kipp Mary E director 100 N STANTON EL PASO TX 79901
Otteni Peter V officer: Senior Vice President 2200 PENNSYLVANIA AVENUE NW SUITE 200W WASHINGTON DC 20037
Stroman John J officer: Senior Vice President 2200 PENNSYLVANIA AVENUE NW SUITE 200W WASHINGTON DC 20037
Walton William H Iii director ONE INDEPENDENT DRIVE SUITE 1600 JACKSONVILLE FL 32202
Hoskins Diane J director 101 CONSTITUTION AVENUE, NW WASHINGTON DC 20080
Ayotte Kelly director C/O NEWS CORPORATION 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036
Walsh Michael R. officer: SVP & Chief Accounting Officer 800 BOYLSTON STREET SUITE 1900 BOSTON MA 02199
Duncan Bruce W director ONE NORTH WACKER DRIVE SUITE 4200 CHICAGO IL 60606
Dykstra Karen E director ONE ADP BLVD ROSELAND NJ 07068
Silverstein Lori W officer: Vice President, Controller C/O BOSTON PROPERTIES, INC. 800 BOYLSTON STREET, SUITE 1900 BOSTON MA 02199
Seidenberg Ivan G director VERIZON COMMUNICATIONS INC 140 WEST STREET, 29TH FLOOR NEW YORK NY 10007
Powers John Francis officer: Senior Vice President 599 LEXINGTON AVE NEW YORK NY 10022
Thomas Owen D director, officer: Chief Executive Officer 599 LEXINGTON AVENUE NEW YORK NY 10022
Klein Joel director C/O NEWS AMERICA INCORPORATED 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036

Boston Properties Headlines

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