Fund Takes New $18 Million Position in Boston Properties Stock Despite 10% One-Year Slide

On February 17, 2026, Connecticut-based H/2 Credit Manager disclosed a new position in Boston Properties (BXP +1.09%), acquiring 268,110 shares in a trade estimated at $18.09 million.

What happened

According to an SEC filing dated February 17, 2026, H/2 Credit Manager LP established a new holding in Boston Properties during the fourth quarter, acquiring 268,110 shares. The position’s quarter-end value totaled $18.09 million.

What else to know

• Top holdings after the filing:
  • NYSE:VRE: $81.44 million (17.8% of AUM)
  • NASDAQ:DHC: $72.35 million (15.8% of AUM)
  • NYSE:RLJ: $71.39 million (15.6% of AUM)
  • NYSE:INN: $44.45 million (9.7% of AUM)
  • NASDAQ:DRH: $36.51 million (8.0% of AUM)
• As of February 17, 2026, BXP shares were priced at $60.66, down 10.5% over the past year and underperforming the S&P 500 by 22.09 percentage points.

Company overview

Company snapshot

• Boston Properties develops, owns, and manages Class A office properties across major U.S. markets.
• It operates as a fully integrated real estate investment trust (REIT), focusing on acquisition, development, and operation of Class A office space.
• The REIT maintains a portfolio with properties in cities such as Boston, Los Angeles, New York, San Francisco, and Washington, DC.

Boston Properties is the largest publicly held developer and owner of Class A office properties in the United States. The company leverages its scale and expertise in prime urban markets to attract high-credit tenants and maintain high occupancy rates. Its integrated REIT platform and focus on premier office assets provide a competitive advantage in delivering stable cash flows and long-term value for shareholders.

What this transaction means for investors

Office real estate remains one of the market’s most polarizing sectors, and that makes this move interesting. Boston Properties just reported fourth-quarter revenue of $877 million, up 2.2% year over year, and full-year funds from operations (FFO) of $1.1 billion, or $6.85 per share, roughly in line with the previous year. Management’s 2026 FFO guidance of $6.88 to $7.04 per share implies modest growth despite asset sales and redevelopment activity.

At roughly $61 per share, BXP trades at under 9 times trailing FFO, a multiple that reflects skepticism about long-term office demand, particularly in San Francisco and New York, where occupancy still trails pre-pandemic levels.

Within a portfolio already heavy in lodging and other REIT exposure, adding a gateway office landlord signals conviction in asset quality rather than a broad macro call. If premier workplaces in top markets regain pricing power, today’s valuation embeds too much pessimism. But if remote work becomes structurally permanent, the multiple compression could persist.