BXP Announces Third Quarter 2025 Results

Signed Leases for More Than 1.5 Million Square Feet in Q3 and Issued $1 Billion in 2.00% Exchangeable Notes Due 2030

BXP, Inc. (NYSE:BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported results today for the third quarter ended September 30, 2025.

Financial Highlights

• Revenue increased 1.4% to $871.5 million for the quarter ended September 30, 2025, compared to $859.2 million for the quarter ended September 30, 2024.
  
  
  
  
• Net income (loss) attributable to BXP, Inc. of $(121.7) million, or $(0.77) per diluted share (EPS), for the quarter ended September 30, 2025, compared to $83.6 million, or $0.53 per diluted share, for the quarter ended September 30, 2024.
  • EPS for the third quarter fell short of the mid-point of guidance by $1.19 per diluted share primarily due to non-cash impairment charges totaling $1.22 per diluted share related to our strategic asset sales program.
    
    
    
    
• Funds from Operations (FFO) of $276.7 million, or $1.74 per diluted share, for the quarter ended September 30, 2025, compared to FFO of $286.9 million, or $1.81 per diluted share, for the quarter ended September 30, 2024.
  • FFO exceeded the midpoint of guidance by $0.04 per diluted share primarily due to portfolio outperformance.

Guidance

BXP provided updated guidance for full year 2025 EPS of $0.99 - $1.02 and FFO of $6.89 - $6.92 per diluted share.

See "EPS and FFO per Share Guidance" below.

Leasing & Occupancy

• Executed 79 leases in the third quarter totaling more than 1.5 million square feet with a weighted-average lease term of 7.9 years. This leasing volume represents BXP's strongest third quarter since 2019, and a 38% increase from the third quarter of 2024.
  
  
  
  
• BXP's CBD portfolio of premier workplaces was 89.3% occupied and 92.0% leased (including vacant space for which we have signed leases that have not yet commenced in accordance with GAAP) for the third quarter. Approximately 89.0% of BXP's Share of annualized rental obligations is derived from clients located in our CBD portfolio, underscoring the strength of BXP's strategy to invest in the highest quality buildings in dynamic urban gateway markets.
  
  
  
  
• BXP's portfolio occupancy for the third quarter was 86.6% (excluding third quarter development deliveries), an increase of 20 basis points from the previous quarter. Upon adding 360 Park Avenue South, 1050 Winter Street and Reston Next Office Phase II to the in-service portfolio, the resultant total portfolio occupancy rate for the third quarter was 86.0%, a decrease of 40 basis points from Q2 2025 as each development project has leases for which revenue recognition has not commenced in accordance with GAAP.
  
  
  
  
• BXP's portfolio percentage leased for the third quarter was 89.2% (excluding third quarter development deliveries), an increase of 10 basis points from the previous quarter (including vacant space for which we have signed leases that have not yet commenced in accordance with GAAP). Including the impact of placing the three development properties in-service, the total portfolio leased percentage decreased by 30 basis points from Q2 2025 to 88.8%.

Development

• BXP commenced full vertical construction of 343 Madison Avenue in New York City, New York. 343 Madison Avenue will be a highly amenitized, sustainably designed, 46-story, 930,000 square foot premier workplace located on one of the best office development sites in Manhattan with direct access to Grand Central Station. In addition, BXP signed a letter of intent with a prospective client to lease approximately 274,000 square feet, or 30% of the building's square footage. BXP is in active discussions with other prospective clients, underscoring the continued strong demand for the future premier workplace. 343 Madison represents a strong and significant value creation opportunity for shareholders.
  
  
  
  
• Fully placed in-service three development projects:
  • 1050 Winter Street, an approximately 162,000 square foot office building located in the urban edge of Boston, Massachusetts. The project is 100% leased.
  • Reston Next Office Phase II, an approximately 87,000 square foot boutique premier workplace located in Reston, Virginia. The project is 92% leased.
  • 360 Park Avenue South, an approximately 448,000 square foot premier workplace located in New York City, New York. The project is 38% leased.

Transactions

• Since our Investor Day on September 8, 2025, BXP completed the sale of three land parcels for a gross sales price aggregating approximately $42.0 million. BXP's net cash proceeds totaled approximately $39.5 million.
  
  
  
  
• BXP has additional properties under contract for sale aggregating approximately $400 million of estimated net proceeds, to BXP, if consummated. The sales of these properties are subject to customary closing conditions that BXP expects to be completed between 2025 and 2027. There can be no assurance that BXP will sell these properties on the terms or the schedule currently contemplated.

Balance Sheet & Liquidity

• Boston Properties Limited Partnership ("BPLP") issued $1.0 billion aggregate principal amount of 2.00% Exchangeable Senior Notes due 2030. The offering was upsized from the initially announced offering size of $600 million. The GAAP interest rate on the notes is 2.5% per annum. Net proceeds after the initial purchaser's discount and offering costs, including the capped call transaction costs, were approximately $940.1 million.
  
  
  
  
• A joint venture in which BXP has a 50% ownership interest closed on a $465.0 million, 5.5-year, non-recourse commercial mortgage-backed securities ("CMBS") loan secured by the podium and office tower at The Hub on Causeway in Boston, Massachusetts. The loan is scheduled to mature on April 9, 2031, and bears interest at a fixed rate of approximately 5.73% per annum. Proceeds from the loan and retained cash flow were used to repay two existing loans on the podium and office tower at The Hub on Causeway having an aggregate outstanding principal balance of approximately $490 million. This transaction represents BXP's first "Green Bond" CMBS financing, underscoring the quality of The Hub on Causeway as a premier, sustainable workplace and highlighting BXP's ongoing commitment to environmentally responsible development.

EPS and FFO per Share Guidance:

BXP's guidance for the full year 2025 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in this release and those referenced during the related conference call. The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions not under contract as of the date hereof, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may fluctuate as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. There can be no assurance that BXP's actual results will not differ materially from the estimates set forth below.

The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter ended September 30, 2025. In the opinion of management, BXP has made all adjustments considered necessary for a fair statement of these reported results.

BXP will host a conference call on Wednesday, October 29, 2025 at 10:00 AM Eastern Time, open to the general public, to discuss the third quarter results, provide a business update, and discuss other business matters that may be of interest to investors. Participants who would like to join the call and ask a question may register at https://register-conf.media-server.com/register/BI4ce37a065efa42c58c314501cbf223a8 to receive the dial-in numbers and unique PIN to access the call. There will also be a live audio, listen-only webcast of the call, which may be accessed in the Investors section of BXP's website at https://investors.bxp.com/events-webcasts. Shortly after the call, a replay of the call will be available on BXP's website at https://investors.bxp.com/events-webcasts for up to twelve months following the call.

Additionally, a copy of BXP's third quarter 2025 "Supplemental Operating and Financial Data" and this press release are available in the Investors section of BXP's website at investors.bxp.com.

BXP, Inc. (NYSE:BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 55 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). As of September 30, 2025, including properties owned by unconsolidated joint ventures, BXP's portfolio totals 54.6 million square feet and 187 properties, including eight properties under construction/redevelopment. For more information about BXP, please visit our website or follow us on LinkedIn or Instagram.

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words "anticipates," "believes," "budgeted," "could," "estimates," "expects," "guidance," "intends," "may," "might," "plans," "projects," "should," "will," and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond BXP's control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to adverse changes in general economic and capital market conditions, including continued inflation, elevated interest rates, supply chain disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the U.S. or global economy, general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on favorable terms, sustained changes in client preferences and space utilization, dependence on clients' financial condition, and competition from other developers, owners and operators of real estate), the impact of adverse political conditions, including policy changes by the U.S. Government, such as the direct and indirect negative impacts that new and increased tariffs may have on (1) our current and prospective clients and their demand for office space and (2) the costs and availability of construction materials and the economic returns on our construction and development activities, and prolonged government shutdowns or disruptions, the impact of geopolitical conflicts, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on BXP's accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes and other risks and uncertainties detailed from time to time in BXP's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance, or achievements. BXP does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as otherwise required by law.

Financial tables follow.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251028628840/en/

AT BXP

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

[email protected]

Helen Han

Vice President, Investor Relations

[email protected]