Jefferies Maintains Rating, PT On BXP

Jefferies is maintaining its Hold rating and $93 price target on Boston Properties BXP in light of the company's announcement that it plans to sell its Princeton portfolio. In the report, Jefferies writes, “BXP announced on April 25th that it will sell its Princeton portfolio for $468M. The potential sale has been discussed by management given the weakness of the Princeton market and the company's desire to recycle capital into Central Business District (CBD) markets. We estimate a 6.8% cap rate (GAAP basis) on the sale, which seems low for a suburban market, but the buyer is likely underwriting meaningful lease-up of the properties.” BXP closed yesterday at $100.22.