BXP, Inc.

Methodology

This method has limited applicability for BXP (Boston Properties) as an office REIT, since REITs must distribute most income and reported EPS doesn't capture the cash-generating ability of commercial properties. The company's focus on premium office space in gateway cities faces secular headwinds from remote work trends. Investors should use FFO or AFFO-based models rather than traditional earnings metrics, while carefully assessing office demand fundamentals in key markets.

Methodology

Traditional PEG analysis is problematic for BXP given GAAP depreciation charges and the uncertain growth trajectory of office REITs facing work-from-home pressures. If using PEG, substitute FFO or AFFO growth for EPS growth, though even this is complicated by occupancy concerns. For office REITs like BXP, valuation depends critically on lease renewal rates, occupancy trends in gateway markets, and the long-term impact of hybrid work on premium office demand.

Methodology

BXP's dividend yield (typically 4.0-7.0%) represents a substantial component of returns for an office REIT facing growth challenges from remote work trends. The company's high-quality properties in prime locations provide some defense, but dividend sustainability depends on lease renewals and occupancy maintenance. PEGY is relevant for BXP investors, though office market fundamentals and work-from-home trends matter more than simple dividend-adjusted earnings formulas.