Boston Properties, Inc. (BXP) has been receiving a positive response from its existing tenants, as indicated by its recent leasing efforts. This office REIT has inked a 467,000 square-foot long-term lease extension with Snap Inc. at Santa Monica Business Park in Santa Monica, CA. The multi-building lease extension will be valid for a term of ten years. This move will boost the occupancy level at the company’s property and fuel growth in rental income.Located in the heart of the lively Sunset and Ocean Park ...

Debt issued by publicly traded commercial real-estate investment trusts (REITs) has been in rally mode to start 2024, even in the battered office sector.“Shopping centers were a four-letter word for a long time,” according to Alex Snyder, a portfolio manager who focuses on REITs at CenterSquare Investment Management. Now, in a post-pandemic remote-work environment, “office” is a dirty word, he noted.But as office-vacancy rates surge in many cities and landlords face higher borrowing costs, Snyder also sees ...

Cavan Images/Cavan via Getty Images Boston Properties, Inc. (NYSE:BXP), founded in 1970 and headquartered in Boston, MA, is a REIT that primarily engages in the ownership, development, and management of office real estate spread across six markets. The company has a diversified tenant base, is exposed to multiple industries, has strong liquidity, and has had decent operating growth. But most importantly the dividend yield is high, the distribution appears safe from a cut/suspension, and the shares are tradi ...

BOSTON--(BUSINESS WIRE)--BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, today announced that it has signed a ten-year, approximately 467,000 square foot, multi-building lease extension with Snap Inc. at Santa Monica Business Park. “We are thrilled that Snap will continue to innovate and grow their business at Santa Monica Business Park,” stated Alex Cameron, Vice President, Leasing, Los Angeles Regional Director, BXP. “Their commitme ...

Marcio Silva/iStock via Getty Images Introduction Working my way through office real estate, I saw that I covered Boston Properties (NYSE:BXP), one of America's largest office landlords, four times in the past (this article is number five). Seeking Alpha I started covering the stock in April of 2020. My most recent article was written on October 8, when I went with the title "7% Yield And Mounting Risks - A Closer Look At Boston Properties". Every single one of my articles had a Hold rating, which wa ...

BOSTON--(BUSINESS WIRE)--Boston Properties, Inc. (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, announced today the 2023 tax treatment of distributions on shares of its common stock, as described below. Shareholders are encouraged to consult with their personal tax advisors as to the specific tax treatment to them of these distributions. Common Shares (CUSIP #101121101) Record Date Payment Date Total Distribution per Sha ...

FORM 10-Q For the Quarterly Period Ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 ...

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $1.86 per share, which was $0.02 above the midpoint of guidance [65] - Revenues exceeded assumptions due to better rental revenues, client service income, parking, and hotel performance [35] - Non-cash impairment charges totaled $273 million related to four unconsolidated joint ventures, reflecting a significant market dislocation [35][66] Business Line Data and Key Metrics Changes - The company completed over a million square feet of leasing in the third quarter with a weighted average lease term of over eight years [14] - Net absorption for the premier segment was a positive half a million square feet, contrasting with a negative 600,000 square feet for the balance of the market [7] - The development portfolio now sits at 2.8 million square feet and is 52% leased [56] Market Data and Key Metrics Changes - U.S. transaction volume for office assets dropped 48% from the second quarter to $4.4 billion, marking the lowest quarterly level since Q1 2010 [46] - Direct vacancy for premier workplaces was 12.4% compared to 17% for the balance of the market [16] - The company noted that construction financing for office space is currently difficult to obtain, with traditional lenders reducing exposure to commercial real estate [29] Company Strategy and Development Direction - The company aims to capitalize on unique opportunities to expand its portfolio amid current market dislocation [19] - Focus remains on premier workplace assets, life science, and residential development [49] - The company is actively pursuing additional capital raising through joint ventures and considering incremental asset sales [10] Management's Comments on Operating Environment and Future Outlook - Management expressed that economic conditions are the primary driver of slower leasing activity, with a rebound expected when earnings growth returns [15] - The company remains well-positioned to weather the economic slowdown due to its leadership in the premier workplace market segment [21] - Management highlighted that all office buildings are not the same, with premier workplaces outperforming the broader market [16] Other Important Information - The company has maintained access to capital primarily through unsecured debt markets, which is available to few competitors [19] - The company expects to see additional portfolio vacancy stemming from WeWork defaults as it moves into 2024 [26] - The company has a strong liquidity position with $2.7 billion available [49] Q&A Session Summary Question: Concerns about underwriting lease-up and lease growth - Management noted that buyers are concerned about how to underwrite lease-up and lease growth amid economic uncertainty and the cost of capital [39] Question: Impairments related to joint ventures - Management indicated that the impairment charges reflect accounting adjustments and do not necessarily indicate a meaningful change in asset prospects, except for Platform 16 [40][72] Question: Expectations for WeWork's lease exits - Management stated it is uncertain where WeWork will exit but expects to collect termination income from their leases [87][88] Question: Development opportunities and market conditions - Management discussed the differences between two development opportunities, emphasizing that both serve different market segments [104][105] Question: Pricing adjustments for investment opportunities - Management indicated that pricing adjustments are necessary for buyers to become more active, particularly in light of high borrowing costs [82][93]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for Boston Properties, Inc. and Boston Properties Limited Partnership, including balance sheets, statements of operations, and cash flows [Boston Properties, Inc. Financial Statements](index=5&type=section&id=Boston%20Properties%2C%20Inc.%20Financial%20Statements) Boston Properties, Inc. reported a net income of **$182.2 million** for the six months ended June 30, 2023, a decrease from **$366.0 million** in 2022, with diluted EPS falling to **$1.16** BXP Consolidated Balance Sheet Summary (in thousands) | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $25,341,680 | $24,207,669 | | **Total Liabilities** | $17,048,845 | $15,837,237 | | **Total Equity** | $8,286,543 | $8,363,819 | BXP Statement of Operations Summary (in thousands, except per share data) | Metric | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | $1,620,353 | $1,528,234 | | **Net Income Attributable to BXP** | $182,215 | $366,044 | | **Diluted EPS** | $1.16 | $2.33 | BXP Statement of Cash Flows Summary (in thousands) | Metric | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $613,183 | $616,639 | | **Net Cash from Investing Activities** | ($554,864) | ($980,170) | | **Net Cash from Financing Activities** | $833,359 | $365,223 | [Boston Properties Limited Partnership Financial Statements](index=14&type=section&id=Boston%20Properties%20Limited%20Partnership%20Financial%20Statements) Boston Properties Limited Partnership reported a net income of **$206.9 million** for the six months ended June 30, 2023, a decrease from **$415.6 million** in 2022, with diluted earnings per unit falling to **$1.18** BPLP Consolidated Balance Sheet Summary (in thousands) | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $25,095,318 | $23,957,763 | | **Total Liabilities** | $17,048,845 | $15,837,237 | | **Total Capital** | $6,905,128 | $6,833,027 | BPLP Statement of Operations Summary (in thousands, except per unit data) | Metric | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | $1,620,353 | $1,528,234 | | **Net Income Attributable to BPLP** | $206,928 | $415,617 | | **Diluted Earnings per Common Unit** | $1.18 | $2.38 | BPLP Statement of Cash Flows Summary (in thousands) | Metric | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $613,183 | $616,639 | | **Net Cash from Investing Activities** | ($554,864) | ($980,170) | | **Net Cash from Financing Activities** | $833,359 | $365,223 | [Notes to the Consolidated Financial Statements](index=22&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes detail the company's accounting policies, financial activities, property portfolio, debt instruments, segment performance, and subsequent events including a new joint venture - As of June 30, 2023, the company owned or had interests in a portfolio of **191 commercial properties** totaling approximately **54.1 million net rentable square feet**, primarily consisting of premier workplaces[125](index=125&type=chunk) - The company consolidates **six Variable Interest Entities (VIEs)**, including its operating partnership BPLP and five in-service properties, for which it is the primary beneficiary[20](index=20&type=chunk)[127](index=127&type=chunk) - On May 15, 2023, BPLP issued **$750.0 million** of **6.500% unsecured senior notes due 2034**, and on January 4, 2023, entered into a **$1.2 billion unsecured term loan facility** subsequently hedged in May 2023[173](index=173&type=chunk)[174](index=174&type=chunk)[176](index=176&type=chunk) - Subsequent to quarter-end, on July 28, 2023, the company entered into a joint venture for the future development of **343 Madison Avenue** in New York City[234](index=234&type=chunk)[295](index=295&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the economic outlook, return-to-office trends, and the company's strategy, highlighting increased leasing activity, **4.3% NOI growth** for the first six months of 2023, and strong liquidity - The company's strategy focuses on its leadership in the premier workplace segment, which continues to outperform the broader office market in vacancy and net absorption as companies upgrade their spaces to attract employees back to the office[218](index=218&type=chunk)[220](index=220&type=chunk) - In Q2 2023, the company signed approximately **938,000 square feet of leases**, an increase from **660,000** in Q1 2023, with the overall in-service premier workplace and retail portfolio **88.3% occupied** and **90.4% leased** as of June 30, 2023[221](index=221&type=chunk) Net Operating Income (NOI) Comparison (in thousands) | Period | 2023 (in thousands) | 2022 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Six Months Ended June 30** | $994,495 | $953,358 | $41,137 | 4.31% | | **Three Months Ended June 30** | $503,489 | $484,042 | $19,447 | 4.02% | - As of July 28, 2023, the company had approximately **$1.4 billion in cash** and **$1.5 billion available** under its revolving credit facility, which management believes is sufficient to fund capital requirements and investment opportunities[434](index=434&type=chunk) [Results of Operations](index=58&type=section&id=Results%20of%20Operations) Net Operating Income (NOI) increased by **$41.1 million (4.3%)** to **$994.5 million** for the six months ended June 30, 2023, primarily driven by acquired and in-service properties Six-Month NOI Change by Portfolio (in thousands) | Portfolio | 2023 NOI (in thousands) | 2022 NOI (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | **Same Property** | $904,094 | $904,634 | ($540) | | **Acquired** | $43,920 | $4,792 | $39,128 | | **Placed In-Service** | $49,558 | $10,142 | $39,416 | | **Development/Redevelopment** | ($3,607) | $11,377 | ($14,984) | | **Sold** | $530 | $22,413 | ($21,883) | | **Total NOI** | **$994,495** | **$953,358** | **$41,137** | - The increase in Same Property operating expenses for the first six months of 2023 was driven by higher real estate taxes (+$12.1 million), particularly in New York City, and other operating expenses (+$17.4 million), including **$2.3 million** in opening costs for the View Boston Observatory[282](index=282&type=chunk) - Gains on sales of real estate decreased by **$118.9 million** for the six months ended June 30, 2023, as there were no sales in 2023, compared to gains from two property sales in the same period of 2022[319](index=319&type=chunk) - Interest expense for the first six months of 2023 increased by **$71.3 million**, primarily due to higher interest on unsecured term loans and credit facilities (+$29.9 million) and the issuance of new senior notes in late 2022 (+$25.4 million)[324](index=324&type=chunk)[347](index=347&type=chunk) [Liquidity and Capital Resources](index=82&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$15.5 billion** in consolidated debt, a **$1.6 billion** development pipeline, and sufficient capital to meet upcoming obligations and fund new projects - As of June 30, 2023, the company had **13 properties** under construction/redevelopment, with an estimated remaining equity requirement of approximately **$1.6 billion** to be funded through 2026[455](index=455&type=chunk)[453](index=453&type=chunk) Consolidated Debt Summary (as of June 30, 2023, in thousands) | Debt Type | Carrying Amount (in thousands) | | :--- | :--- | | Fixed rate mortgage notes, net | $3,274,764 | | Unsecured senior notes, net | $10,985,395 | | Unsecured term loan, net | $1,196,046 | | **Total Consolidated Debt** | **$15,456,205** | - The company has upcoming debt maturities including **$500 million** of **3.125% notes due September 2023** and **$700 million** of **3.800% notes due February 2024**, which it expects to fund with available cash, asset sales, or refinancing[428](index=428&type=chunk) - On May 17, 2023, BXP renewed its "at the market" (ATM) stock offering program, allowing for the sale of up to **$600.0 million** of its Common Stock, with no shares issued under this program to date[268](index=268&type=chunk)[434](index=434&type=chunk) [Funds from Operations (FFO)](index=96&type=section&id=Funds%20from%20Operations) Funds from Operations (FFO) attributable to Boston Properties, Inc. for Q2 2023 was **$292.8 million** or **$1.86 per diluted share**, a decrease primarily due to the absence of property sales gains BXP FFO Reconciliation (in thousands) | Metric | Q2 2023 (in thousands) | Q2 2022 (in thousands) | | :--- | :--- | :--- | | Net Income Attributable to BXP | $104,299 | $222,989 | | Adjustments (Depreciation, etc.) | $188,545 | $81,571 | | **FFO Attributable to BXP** | **$292,844** | **$304,560** | BPLP FFO Reconciliation (in thousands) | Metric | Q2 2023 (in thousands) | Q2 2022 (in thousands) | | :--- | :--- | :--- | | Net Income Attributable to BPLP | $118,098 | $253,788 | | Adjustments (Depreciation, etc.) | $208,227 | $85,101 | | **FFO Attributable to BPLP** | **$326,325** | **$338,889** | [Quantitative and Qualitative Disclosures about Market Risk](index=102&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate changes, with **$15.5 billion** in consolidated debt as of June 30, 2023, of which **$1.2 billion** in variable-rate debt was fully hedged - As of June 30, 2023, the company had **no unhedged variable rate debt**, as its entire **$1.2 billion** of variable rate borrowings was subject to interest rate swaps[488](index=488&type=chunk) Consolidated Debt by Rate Type (as of June 30, 2023) | Rate Type | Amount (billions) | Percentage of Total | | :--- | :--- | :--- | | Fixed Rate | $14.3 | ~92.3% | | Variable Rate (Hedged) | $1.2 | ~7.7% | | **Total** | **$15.5** | **100%** | [Controls and Procedures](index=103&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during Q2 - The Chief Executive Officer and Chief Financial Officer of Boston Properties, Inc. concluded that the disclosure controls and procedures for both BXP and BPLP were **effective** as of June 30, 2023[515](index=515&type=chunk)[516](index=516&type=chunk) - There were **no material changes** in internal control over financial reporting during the second quarter of 2023 that materially affected, or are reasonably likely to materially affect, the company's internal controls[515](index=515&type=chunk)[516](index=516&type=chunk) [PART II. OTHER INFORMATION](index=104&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=104&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings, generally covered by insurance, and not expected to materially affect its financial position or liquidity - The company reports that it is subject to ordinary course legal proceedings, which are generally covered by insurance and are not expected to have a **material adverse effect** on its financial condition[542](index=542&type=chunk) [Risk Factors](index=104&type=section&id=ITEM%201A.%20Risk%20Factors) There were no material changes to the risk factors previously disclosed in the company's 2022 Annual Report on Form 10-K - There were **no material changes** to the risk factors previously disclosed in the company's 2022 Annual Report on Form 10-K[543](index=543&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=104&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2023, BPLP issued **7,449 common units** to BXP for **$67.80** and repurchased **11,627 LTIP and MYLTIP units** from terminated employees - BPLP issued **7,449 common units** to BXP in connection with BXP's issuance of restricted stock to non-employee directors and settlement of deferred stock awards[546](index=546&type=chunk) - BPLP repurchased **11,627 LTIP and MYLTIP units** during the quarter from terminated employees at a price of **$0.25 per unit**[548](index=548&type=chunk)[519](index=519&type=chunk) [Defaults Upon Senior Securities](index=105&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - The company reported **no defaults** upon senior securities[549](index=549&type=chunk)[521](index=521&type=chunk) [Other Information](index=105&type=section&id=ITEM%205.%20Other%20Information) The company reported no other information required to be disclosed under this item - The company reported **no other material information** for the quarter[522](index=522&type=chunk)[551](index=551&type=chunk) [Exhibits](index=106&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including credit agreements, senior notes indenture, and required CEO and CFO certifications - Exhibit 4.1 contains the Supplemental Indenture for the **$750 million 6.500% Senior Notes due 2034**[558](index=558&type=chunk) - Exhibit 10.1 is the First Amendment to the Ninth Amended and Restated Credit Agreement, dated June 1, 2023[553](index=553&type=chunk) - Exhibits 31.1 through 32.4 contain the required CEO and CFO certifications under the Sarbanes-Oxley Act[525](index=525&type=chunk)[558](index=558&type=chunk)

Boston Properties, Inc. (NYSE:BXP) Q2 2023 Earnings Conference Call August 2, 2023 10:00 AM ET Company Participants Helen Han - VP, IR Owen Thomas - CEO & Chairman Douglas Linde - President & Director Michael LaBelle - EVP, Treasurer & CFO Hilary Spann - EVP, New York Region Bryan Koop - EVP, Boston Region Rodney Diehl - SVP, Leasing, San Francisco Conference Call Participants John Kim - BMO Capital Markets Michael Griffin - Citigroup Blaine Heck - Wells Fargo Securities Stephen Sakwa - Evercore ISI Camille ...