Boston Properties: A Contrarian To The Work-From-Home Trend

9/2/20

By Riyado Sofian, SA

Anti-office technology stocks have rallied to all-time highs week after week, while office REITs remain flat at rock-bottom prices after the march sell-off. Work-from-home policies and social distancing measures have clearly contributed to the rally of anti-office stocks. On the other hand, there's no sight of light at the end of the tunnel for office REITs as the work-from-home trend remains and the return-to-office trend largely discouraged. However, I believe there will be a reversal to both these trends as a vaccine development is soon approaching. While work-from-home trends will remain in place after the pandemic ends, the hybrid office format is likely to be adopted by many corporations. Thus, the office will still remain relevant in the post-pandemic era.

Boston Properties is the largest office REIT with top-of-the-line office properties and has the only "A" credit rating in the office REIT sub-industry. Yet, share prices are 40% down from pre-pandemic levels, a huge bargain for patient value investors.

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