BXP Earnings: Office Portfolio Has a Long Road To Recovery Ahead; Maintaining Our $91 FVE

No-moat-rated BXP posted a middling set of numbers in the second quarter as the firm reported funds from operations, or FFO, of $278 million or $1.77 per share, down 5% compared with the $293 million or $1.86 per share in the second quarter of the previous year. The company slightly updated its 2024 full-year FFO guidance to $7.09-$7.15 per diluted share, an increase of approximately $0.08 per share at the midpoint. The higher FFO guidance was mainly due to $0.05 per share of lower-than-projected noncash interest expense on the reassessment of the finance lease with the rest related to better performance of the company's operating portfolio. We are maintaining our $91 per share fair value estimate for BXP after incorporating the second-quarter results.