Boston Properties (BXP) Secures Lease at 751 Gateway, Stock Up

Boston Properties BXP is witnessing high demand for its life-science properties. It recently secured a 229,000-square-foot lease at 751 Gateway with a leading biotech company. The lease is for a full building under construction and will likely be delivered in early 2024.

– Zacks

Since the announcement of the news on Dec 6, 2021, shares of Boston Properties have risen 1.2% to 114.8.

751 Gateway is the first phase of a multi-phase life-science campus development project at Gateway Commons in South San Francisco. The project is run by Boston Properties and its joint venture partner Alexandria Real Estate Equities. Upon completion, Boston Properties will own 49% of 751 Gateway.

South San Francisco is the hub of leading life-science companies. Moreover, advantageously located near Caltrain and Highway 101, Gateway Commons holds a mix of office and lab properties. Hence, Boston Properties is well-poised to lure tenants.

Amid the high need for effective diagnostics, therapies, drug innovations and research, life-science properties continue witnessing solid demand in recent years. Therefore, Boston Properties’ targeted efforts to boost its life-science assets and tenant base from the industry seem a strategic fit.

Earlier this month, Boston Properties announced the execution of three leases, aggregating 166,000 square feet at 880 Winter Street in Waltham, MA, which resulted in its 244,000-square-foot life-sciences conversion project to be roughly 70% pre-leased. The project is slated for delivery in the second half of 2022.

BXP Life Sciences comprises an existing portfolio of more than three million square feet focused on the specific needs of the life-sciences industry. The properties are mainly in the leading innovation markets of Boston, Cambridge, and Waltham/Lexington, MA; Montgomery County, MD, and San Francisco and Los Angeles, CA.

Moreover, Boston Properties has roughly six million square feet of life sciences-focused development opportunities, including one million square feet of current lab developments and redevelopments in process.

However, the overall choppy environment for the office real-estate market remains a concern for Boston Properties, which has a concentration of office assets in six markets, namely Boston, Los Angeles, New York, San Francisco, Seattle and Washington, D.C.

Boston Properties currently carries a Zacks Rank #3 (Hold). In the past three months, BXP’s shares have gained 3.7%, underperforming the industry’s increase of 4.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stocks to Consider

Some stocks worth considering from the REIT sector are OUTFRONT Media OUT, Cedar Realty Trust CDR and CubeSmart CUBE.

The Zacks Consensus Estimate for OUTFRONT Media’s 2021 fund from operations (FFO) per share has been raised 13.8% over the past two months. OUT’s 2021 FFO per share is expected to increase 45.71% from the year-ago quarter’s reported figure.

OUTFRONT Media flaunts a Zacks Rank #1 at present. Shares of OUT have rallied 4.8% in the past six months.

The Zacks Consensus Estimate for Cedar Realty’s current-year FFO per share has been raised 2.6% to $2.36 in the past month. Over the last four quarters, CDR’s FFO per share surpassed the consensus mark twice and missed the same in the other two, the average surprise being 6.4%.

Currently, CDR sports a Zacks Rank of 1. Shares of Cedar Realty have appreciated 46.9% in the past six months.

CubeSmart carries a Zacks Rank #2 (Buy) at present. Over the last four quarters, CUBE’s FFO per share surpassed the consensus mark on all occasions, the average being 7.10%.

The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share has been revised 2.4% upward in the past month to $2.10. Shares of CUBE have inched up 17.4% in the past six months.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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Boston Properties, Inc. (BXP): Free Stock Analysis Report
 
CubeSmart (CUBE): Free Stock Analysis Report
 
Cedar Realty Trust, Inc. (CDR): Free Stock Analysis Report
 
OUTFRONT Media Inc. (OUT): Free Stock Analysis Report
 
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