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Boston Properties (Boston Properties) ROE %

: 8.22% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Boston Properties's annualized net income for the quarter that ended in Dec. 2023 was $480 Mil. Boston Properties's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $5,832 Mil. Therefore, Boston Properties's annualized ROE % for the quarter that ended in Dec. 2023 was 8.22%.

The historical rank and industry rank for Boston Properties's ROE % or its related term are showing as below:

BXP' s ROE % Range Over the Past 10 Years
Min: 3.17   Med: 8.97   Max: 14.94
Current: 3.18

During the past 13 years, Boston Properties's highest ROE % was 14.94%. The lowest was 3.17%. And the median was 8.97%.

BXP's ROE % is ranked worse than
55.68% of 801 companies
in the REITs industry
Industry Median: 4.22 vs BXP: 3.18

Boston Properties ROE % Historical Data

The historical data trend for Boston Properties's ROE % can be seen below:

* 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.

* Premium members only.

Boston Properties Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.02 14.94 8.54 14.19 3.17

Boston Properties Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.93 5.11 6.89 -7.56 8.22

Competitive Comparison

For the REIT - Office subindustry, Boston Properties's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution

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

* The bar in red indicates where Boston Properties's ROE % falls into.



Boston Properties ROE % Calculation

Boston Properties's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=190.215/( (6132.919+5876.697)/ 2 )
=190.215/6004.808
=3.17 %

Boston Properties's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=479.7/( (5788.083+5876.697)/ 2 )
=479.7/5832.39
=8.22 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Boston Properties  (NYSE:BXP) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=479.7/5832.39
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(479.7 / 3315.732)*(3315.732 / 25382.6485)*(25382.6485 / 5832.39)
=Net Margin %*Asset Turnover*Equity Multiplier
=14.47 %*0.1306*4.352
=ROA %*Equity Multiplier
=1.89 %*4.352
=8.22 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=479.7/5832.39
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (479.7 / 612.62) * (612.62 / 1057.16) * (1057.16 / 3315.732) * (3315.732 / 25382.6485) * (25382.6485 / 5832.39)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.783 * 0.5795 * 31.88 % * 0.1306 * 4.352
=8.22 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Boston Properties ROE % Related Terms

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


Boston Properties (Boston Properties) Business Description

Traded in Other Exchanges
Address
800 Boylston Street, Suite 1900, Prudential Center, Boston, MA, USA, 02199-8103
Boston Properties owns over 190 properties consisting of approximately 54 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, Los Angeles, Seattle, and the Washington, D.C., region. The real estate investment trust also owns limited retail, hotel, and residential properties.
Executives
Eric G Kevorkian officer: SVP, CLO and Secretary 800 BOYLSTON STREET, SUITE 1900, BOSTON MA 02199
Rodney Diehl officer: Senior Vice President FOUR EMBARCADERO CENTER, SAN FRANCISCO CA 94549
Raymond A Ritchey officer: Executive Vice President BOSTON PROPERTIES, INC., 901 NEW YORK AVENUE, NW, WASHINGTON DC 20001
Peter V Otteni officer: Senior Vice President 2200 PENNSYLVANIA AVENUE NW, SUITE 200W, WASHINGTON DC 20037
Carol B. Einiger director POST ROCK ADVISORS, LLC, ONE ROCKEFELLER PLAZA, 28TH FLOOR, NEW YORK NY 10020
Tony West director 1455 MARKET STREET, 4TH FLOOR, SAN FRANCISCO CA 94103
Matthew J Lustig director LAZARD FRERES & CO LLC, 30 ROCKEFELLER PLZA 50TH FL, NEW YORK NY 10020
Donna D Garesche officer: EVP, Chief HR Officer C/O BOSTON PROPERTIES, INC., 800 BOYLSTON STREET, BOSTON MA 02199
Hilary J. Spann officer: Executive Vice President 599 LEXINGTON AVENUE, 16TH FLOOR, NEW YORK NY 10022
Mary E Kipp director 100 N STANTON, EL PASO TX 79901
Douglas T Linde officer: SVP & CFO BOSTON PROPERTIES, INC., 800 BOYLSTON STREET, BOSTON MA 02199
Frank D Burt officer: Senior Vice President BOSTON PROPERTIES, INC., 800 BOYLSTON STREET, BOSTON MA 02199
John J Stroman officer: Senior Vice President 2200 PENNSYLVANIA AVENUE NW, SUITE 200W, WASHINGTON DC 20037
Bryan J Koop officer: Senior Vice President BOSTON PROPERTIES, INC., 800 BOYLSTON STREET, BOSTON MA 02199
Bruce W Duncan director ONE NORTH WACKER DRIVE, SUITE 4200, CHICAGO IL 60606

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