(NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported results today for the second quarter ended June 30, 2026.
Second Quarter 2026 Financial Highlights
- Revenue increased 3.1% to $895.7 million for the quarter ended June 30, 2026, compared to $868.5 million for the quarter ended June 30, 2025.
- Net income attributable to BXP, Inc. of $68.6 million, or $0.43 per diluted share (EPS), for the quarter ended June 30, 2026, compared to $89.0 million, or $0.56 per diluted share, for the quarter ended June 30, 2025.
- EPS for the second quarter 2026 was less than the midpoint of BXP’s guidance by $0.02 per diluted share primarily due to a $0.10 per diluted share non-cash impairment charge recognized in connection with the anticipated disposition of Sumner Square in Washington, DC., partially offset by $0.08 per diluted share of higher revenues from increased occupancy and lower-than-projected net operating expenses.
- Funds from Operations (FFO) of $283.4 million, or $1.78 per diluted share, for the quarter ended June 30, 2026, compared to FFO of $271.7 million, or $1.71 per diluted share, for the quarter ended June 30, 2025.
- FFO for the second quarter 2026 exceeded the midpoint of BXP’s guidance by $0.08 per diluted share primarily driven by higher revenues from increased occupancy and lower-than-projected net operating expenses.
Guidance
BXP provided guidance for third quarter 2026 EPS of $0.50 - $0.52 and FFO of $1.80 - $1.82 per diluted share, and updated guidance for full year 2026 EPS of $2.14 - $2.24 and FFO of $6.99 - $7.05 per diluted share.
The midpoint of full-year 2026 guidance for EPS decreased by $0.03 per diluted share, primarily from the aforementioned impairment charge recorded in the second quarter partially offset by improved operating performance.
The midpoint of full-year 2026 guidance for FFO increased by $0.05 per diluted share primarily due to better-than-projected portfolio performance as described above.
See “EPS and FFO per Share Guidance” below.
Leasing & Occupancy
- Executed 106 leases in the second quarter totaling approximately 1.8 million square feet with a weighted-average lease term of 9.9 years. The amount leased is approximately 129% of our historical 10-year average for the second quarter. Notable signed leases for projects under development include:
- an approximately 148,000 square foot lease with McDermott Will & Schulte at 343 Madison Avenue in New York City, New York, bringing the pre-leased percentage of the project to 50%, and
- an approximately 322,000 square foot lease with Boston Dynamics at Reservoir Place in Waltham, Massachusetts.
- For the second quarter, BXP’s CBD portfolio of premier workplaces was 90.7% occupied and 93.6% leased (including vacant space for which we have signed leases that have not yet commenced revenue recognition in accordance with GAAP). Approximately 91.0% 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 total portfolio occupancy for the second quarter was 88.4%, an increase of 100 basis points from Q1 2026. Approximately 86% of the increase in occupancy was driven by gains across the existing portfolio and the remainder was attributable to the addition of the fully occupied 290 Binney Street property in Cambridge, Massachusetts that was placed in-service in Q2 2026.
- Total portfolio leased percentage was 91.3% (including vacant space for which we have signed leases that have not yet commenced revenue recognition in accordance with GAAP), an increase of 40 basis points from Q1 2026. As of June 30, 2026, the spread between leased and occupied square footage was 290 basis points representing approximately 1.3 million square feet of future lease commencements, with approximately 85% expected to commence before year-end 2026.
Development
- BXP fully placed in-service 290 Binney Street in Cambridge, Massachusetts. 290 Binney Street is a 16-story, 572,578 square foot laboratory/life sciences property that is 100% leased to AstraZeneca.
- BXP commenced the redevelopment of Reservoir Place an approximately 363,000 square foot building located in Waltham, Massachusetts that is 89% pre-leased to Boston Dynamics. Boston Dynamics plans to transform the property into a premier center for robotics and AI innovation.
- As part of BXP’s strategy to use residential entitlements to maximize the value of its land holdings, BXP raised private equity from an institutional investor and formed a joint venture that commenced the development of a 4.7-acre land parcel into a 359-unit multi-family residential project in Herndon, Virginia. BXP has a 20% ownership interest in the joint venture and will be the development manager.
Balance Sheet & Liquidity
- On July 28, 2026, BXP entered into a $1.2 billion construction loan for the development of 343 Madison Avenue in New York City, New York. The loan has a four-year initial term, plus a one-year extension option subject to customary conditions, and was executed on competitive terms, including an initial interest rate of Term SOFR plus 2.50%, which will be reduced to Term SOFR plus 2.25% upon the achievement of certain leasing and construction milestones. The financing represents a significant milestone in the capitalization of the project and supports the ongoing construction of one of New York City's most anticipated workplace developments.
EPS and FFO per Share Guidance:
BXP’s guidance for the third quarter and full year 2026 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.
|
Third Quarter 2026 Full Year 2026 |
Low High Low High | Projected EPS (diluted) $ 0.50 $ 0.52 $ 2.14 $ 2.24 |
Add: |
Projected Company share of real estate depreciation and amortization 1.30 1.30 5.10 5.10 |
Projected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments — — (0.25 ) (0.29 ) | Projected FFO per share (diluted) $ 1.80 $ 1.82 $ 6.99 $ 7.05 |
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 June 30, 2026. 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, July 29, 2026 at 10:00 AM Eastern Time, open to the general public, to discuss the second quarter results and earnings guidance, 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 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 . 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 second quarter 2026 “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 June 30, 2026, including properties owned by unconsolidated joint ventures, BXP’s portfolio totals 51.1 million square feet and 164 properties, including six 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.
BXP, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) |
June 30, 2026 December 31, 2025 |
(in thousands, except for share and par value amounts) | ASSETS | Real estate, at cost $ 27,132,125 $ 26,248,130 | Construction in progress 975,361 1,475,257 | Land held for future development 499,424 518,492 | Right of use assets - finance leases 371,889 372,470 | Right of use assets - operating leases 290,726 325,841 | Less: accumulated depreciation (8,277,690 ) (8,040,311 ) | Total real estate 20,991,835 20,899,879 | Cash and cash equivalents 493,949 1,478,206 | Cash held in escrows 59,514 79,060 | Investments in securities 46,526 44,614 | Tenant and other receivables, net 90,679 92,625 | Note receivable, net 12,185 9,373 | Related party notes receivable, net 35,337 28,346 | Sales-type lease receivable, net 16,170 15,672 | Accrued rental income, net 1,573,959 1,538,515 | Deferred charges, net 848,273 847,690 | Prepaid expenses and other assets 122,830 108,105 | Investments in unconsolidated joint ventures 820,068 999,309 | Assets held for sale 62,544 24,770 | Total assets $ 25,173,869 $ 26,166,164 | LIABILITIES AND EQUITY | Liabilities: | Mortgage notes payable, net $ 4,281,198 $ 4,280,067 | Unsecured senior notes, net 8,811,158 9,806,100 | Unsecured exchangeable senior notes, net 978,642 976,263 | Unsecured line of credit — — | Unsecured term loans, net 797,565 797,053 | Unsecured commercial paper 750,000 750,000 | Lease liabilities - finance leases 353,436 360,039 | Lease liabilities - operating leases 386,487 389,213 | Accounts payable and accrued expenses 474,141 480,017 | Dividends and distributions payable 123,857 123,753 | Accrued interest payable 109,523 125,345 | Other liabilities 364,082 386,074 | Liabilities held for sale 6,130 — | Total liabilities 17,436,219 18,473,924 | Commitments and contingencies — — | Redeemable deferred stock units 7,927 7,538 | Equity: | Stockholders’ equity attributable to BXP, Inc.: | Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — — | Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued or outstanding — — | Common stock, $0.01 par value, 250,000,000 shares authorized, 159,600,410 and 158,627,198 issued and 159,521,510 and 158,548,298 outstanding at June 30, 2026 and December 31, 2025, respectively 1,595 1,585 | Additional paid-in capital 6,881,671 6,836,243 | Dividends in excess of earnings (1,727,547 ) (1,674,995 ) | Treasury common stock at cost, 78,900 shares at June 30, 2026 and December 31, 2025 (2,722 ) (2,722 ) | Accumulated other comprehensive income (loss) 2,148 (12,921 ) | Total stockholders’ equity attributable to BXP, Inc. 5,155,145 5,147,190 | Noncontrolling interests: | Common units of the Operating Partnership 555,763 566,563 | Property partnerships 2,018,815 1,970,949 | Total equity 7,729,723 7,684,702 | Total liabilities and equity $ 25,173,869 $ 26,166,164 |
BXP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
Three months ended June 30, Six months ended June 30, |
2026 2025 2026 2025 |
(in thousands, except for per share amounts) | Revenue | Lease $ 831,678 $ 805,935 $ 1,649,834 $ 1,617,037 | Parking and other 37,586 34,799 68,400 65,041 | Hotel 14,901 14,773 24,002 24,370 | Development and management services 7,633 8,846 16,840 18,621 | Direct reimbursements of payroll and related costs from management services contracts 3,901 4,104 8,771 8,603 | Total revenue 895,699 868,457 1,767,847 1,733,672 | Expenses | Operating | Rental 336,141 332,062 680,223 663,640 | Hotel 9,369 9,365 17,351 16,930 | General and administrative 50,444 42,516 109,785 94,800 | Payroll and related costs from management services contracts 3,901 4,104 8,771 8,603 | Transaction costs (62 ) 357 67 1,125 | Depreciation and amortization 236,977 223,819 464,944 443,926 | Total expenses 636,770 612,223 1,281,141 1,229,024 | Other income (expense) | Income (loss) from unconsolidated joint ventures (2,448 ) (3,324 ) 32,965 (5,463 ) | Gains on sales of real estate 6,997 18,390 20,399 18,390 | Loss on sales-type lease — — — (2,490 ) | Interest and other income (loss) 6,137 8,063 15,022 15,813 | Gains from investments in securities 4,385 2,600 3,819 2,235 | Unrealized gain (loss) on non-real estate investments (75 ) (39 ) 113 (522 ) | Impairment loss (18,036 ) — (18,036 ) — | Loss from early extinguishment of debt — — — (338 ) | Interest expense (153,425 ) (162,783 ) (305,518 ) (326,227 ) | Net income 102,464 119,141 235,470 206,046 | Net income attributable to noncontrolling interests | Noncontrolling interests in property partnerships (26,121 ) (20,100 ) (45,990 ) (38,849 ) | Noncontrolling interest—common units of the Operating Partnership (7,779 ) (10,064 ) (19,294 ) (17,036 ) | Net income attributable to BXP, Inc. $ 68,564 $ 88,977 $ 170,186 $ 150,161 | Basic earnings per common share attributable to BXP, Inc. | Net income $ 0.43 $ 0.56 $ 1.07 $ 0.95 | Weighted average number of common shares outstanding 159,167 158,312 158,863 158,257 | Diluted earnings per common share attributable to BXP, Inc. | Net income $ 0.43 $ 0.56 $ 1.07 $ 0.95 | Weighted average number of common and common equivalent shares outstanding 159,629 158,795 159,344 158,713 |
BXP, INC. FUNDS FROM OPERATIONS (1) (Unaudited) |
Three months ended June 30, Six months ended June 30, |
2026 2025 2026 2025 |
(in thousands, except for per share amounts) | Net income attributable to BXP, Inc. $ 68,564 $ 88,977 $ 170,186 $ 150,161 | Add: | Noncontrolling interest - common units of the Operating Partnership 7,779 10,064 19,294 17,036 | Noncontrolling interests in property partnerships 26,121 20,100 45,990 38,849 | Net income 102,464 119,141 235,470 206,046 | Add: | Depreciation and amortization expense 236,977 223,819 464,944 443,926 | Noncontrolling interests in property partnerships’ share of depreciation and amortization (23,336 ) (20,945 ) (44,207 ) (41,409 ) | Company’s share of depreciation and amortization from unconsolidated joint ventures 12,716 16,674 26,222 34,001 | Corporate-related depreciation and amortization (549 ) (600 ) (1,116 ) (1,316 ) | Non-real estate related amortization 2,131 2,131 4,262 4,261 | Loss on sales-type lease — — — 2,490 | Impairment loss 18,036 — 18,036 — | Less: | Gains on sales of real estate 6,997 18,390 20,399 18,390 | Gains on sales included within income (loss) from unconsolidated joint ventures 1,157 — 42,390 — | Unrealized gain (loss) on non-real estate investments (75 ) (39 ) 113 (522 ) | Noncontrolling interests in property partnerships 26,121 20,100 45,990 38,849 | Funds from operations (FFO) attributable to the Operating Partnership (including BXP, Inc.) 314,239 301,769 594,719 591,282 | Less: | Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 30,827 30,117 59,115 59,010 | Funds from operations attributable to BXP, Inc. $ 283,412 $ 271,652 $ 535,604 $ 532,272 | BXP, Inc.’s percentage share of funds from operations - basic 90.19 % 90.02 % 90.06 % 90.02 % | Weighted average shares outstanding - basic 159,167 158,312 158,863 158,257 | FFO per share basic $ 1.78 $ 1.72 $ 3.37 $ 3.36 | Weighted average shares outstanding - diluted 159,629 158,795 159,344 158,713 | FFO per share diluted $ 1.78 $ 1.71 $ 3.36 $ 3.35 |
(1) Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to BXP, Inc. (computed in accordance with GAAP) for gains (or losses) from sales of properties, including a change in control, impairment losses on depreciable real estate consolidated on our balance sheet, impairment losses on our investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and real estate-related depreciation and amortization. FFO is a non-GAAP financial measure, but we believe the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures for understanding and comparing our operating results because, by excluding gains and losses related to sales or a change in control of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies. |
Our calculation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently. |
In order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to BXP, Inc. as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to BXP, Inc. (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP. |
BXP, INC. PORTFOLIO LEASING PERCENTAGES | CBD Portfolio % Occupied by Location (1) % Leased by Location (2) |
June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 | Boston 97.6 % 97.6 % 98.4 % 98.6 % | Los Angeles 88.2 % 86.5 % 90.9 % 87.0 % | New York 88.9 % 86.2 % 94.7 % 92.1 % | San Francisco 82.5 % 81.9 % 85.1 % 84.4 % | Seattle 81.9 % 79.8 % 85.9 % 81.3 % | Washington, DC 91.5 % 92.4 % 93.3 % 94.2 % | CBD Portfolio 90.7 % 89.8 % 93.6 % 92.5 % |
Total Portfolio % Occupied by Location (1) % Leased by Location (2) |
June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 | Boston 92.9 % 91.9 % 94.2 % 93.1 % | Los Angeles 88.2 % 86.5 % 90.9 % 87.0 % | New York 86.7 % 83.8 % 92.0 % 89.4 % | San Francisco 79.7 % 77.0 % 82.8 % 79.2 % | Seattle 81.9 % 79.8 % 85.9 % 81.3 % | Washington, DC 90.5 % 91.7 % 92.7 % 93.8 % | Total Portfolio 88.4 % 86.7 % 91.3 % 89.4 % |
(1) Represents signed leases for which revenue recognition has commenced in accordance with GAAP. | (2) Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates. |
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