Core Insights - BXP, Inc. is hosting its Triennial Investor Day on September 8th in New York, highlighting its position as the largest publicly traded developer, owner, and manager of premier workplaces in the United States [1] Company Overview - The event features key executives including Owen Thomas (Chairman & CEO), Douglas Linde (President), and Michael LaBelle (Chief Financial Officer), who will present a detailed overview of the company's strategic priorities [1]

Group 1 - BXP (NYSE: BXP) shares have underperformed over the past year, losing approximately 7% of their value due to concerns regarding its balance sheet and long-term office fundamentals [1] - The article reflects on over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1]

| | Quarter End Market Cap($B) | Net Amount Purchased($M) | | --- | --- | --- | | Airbnb, Inc. (ABNB) | 83.1 | 40.6 | | BXP, Inc. (BXP) | 10.7 | 32.5 | | Equinix, Inc. (EQIX) | 77.8 | 30.4 | | Toll Brothers, Inc. (TOL) | 11.2 | 28.9 | | Simon Property Group, Inc. (SPG) | 52.5 | 23.9 | During the most recent quarter, we initiated a new position in Airbnb, Inc. We have been following and meeting with the company since its IPO in 2020 and took advantage of the indiscriminate sell-off in April to buy a high-qua ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides unaudited consolidated financial statements, management's discussion, market risk, and controls [ITEM 1. Financial Statements (unaudited)](index=6&type=section&id=ITEM%201.%20Financial%20Statements%20%28unaudited%29) This section presents unaudited consolidated financial statements for BXP, Inc. and BPLP, covering balance sheets, income, cash flows, and notes [BXP, Inc. Financial Statements](index=6&type=section&id=BXP%2C%20Inc.%20Financial%20Statements) This section provides BXP, Inc.'s unaudited balance sheets, income statements, and cash flow statements for the specified periods | Financial Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total real estate | $21,262,840 | $21,050,255 | | Cash and cash equivalents | $446,953 | $1,254,882 | | Total assets | $25,621,190 | $26,084,980 | | **Liabilities & Equity** | | | | Total liabilities | $17,766,779 | $18,137,324 | | Total stockholders' equity attributable to BXP, Inc. | $5,258,786 | $5,413,306 | | Total equity | $7,847,430 | $7,938,121 | | Income Statement Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Total revenue | $1,733,672 | $1,689,921 | | Total expenses | $1,229,024 | $1,192,965 | | Net income | $206,046 | $213,553 | | Net income attributable to BXP, Inc. | $150,161 | $159,498 | | Diluted EPS attributable to BXP, Inc. | $0.95 | $1.01 | | Cash Flow Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $563,181 | $564,659 | | Net cash used in investing activities | ($612,404) | ($553,504) | | Net cash used in financing activities | ($758,132) | ($886,221) | | Net decrease in cash and cash equivalents | ($807,355) | ($875,066) | [Boston Properties Limited Partnership Financial Statements](index=15&type=section&id=Boston%20Properties%20Limited%20Partnership%20Financial%20Statements) This section presents the unaudited balance sheets and income statements for Boston Properties Limited Partnership | Financial Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total real estate | $21,030,255 | $20,814,165 | | Total assets | $25,388,605 | $25,848,890 | | **Liabilities & Capital** | | | | Total liabilities | $17,766,779 | $18,137,324 | | Total partners' capital | $4,325,791 | $4,389,913 | | Total capital | $6,329,784 | $6,323,458 | | Income Statement Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Total revenue | $1,733,672 | $1,689,921 | | Total expenses | $1,225,618 | $1,189,565 | | Net income | $209,551 | $216,953 | | Net income attributable to BPLP | $170,702 | $181,907 | | Diluted EPS attributable to BPLP | $0.97 | $1.04 | [Notes to the Consolidated Financial Statements](index=24&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section details accounting policies, significant transactions, and subsequent events impacting the consolidated financial statements - As of June 30, 2025, the company owned or had joint venture interests in a portfolio of 186 commercial real estate properties, totaling approximately **53.7 million net rentable square feet**, including ten properties under construction/redevelopment[76](index=76&type=chunk) - On June 27, 2025, the company sold land at 17 Hartwell Avenue to a new joint venture for approximately **$21.8 million**, recognizing a gain of approximately **$18.4 million** for BXP and **$18.5 million** for BPLP, for redevelopment into a 312-unit residential property[100](index=100&type=chunk) - On March 28, 2025, BPLP amended its revolving credit agreement, increasing the revolving facility to **$2.25 billion** (from $2.0 billion) and adding a new **$700.0 million** unsecured term loan facility, with proceeds used to repay the existing **$700.0 million** term loan[119](index=119&type=chunk)[125](index=125&type=chunk) - The company is involved in a legal dispute over performance-based fees for a New York City property, with potential liability as high as an additional **$31 million** plus interest if the court agrees with the seller's calculations[141](index=141&type=chunk)[144](index=144&type=chunk) - On July 31, 2025, the company elected to proceed with full vertical construction of 343 Madison Avenue, a **930,000 rentable square foot** office development, and acquired its partner's **45% interest** for approximately **$43.5 million**[191](index=191&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses company performance, emphasizing strong leasing, development, and liquidity, with net income slightly down due to interest expenses [Overview and Outlook](index=51&type=section&id=Overview%20and%20Outlook) This section outlines BXP's core strategy, market position, and positive outlook, driven by corporate confidence and return-to-office trends - BXP's core strategy involves developing, acquiring, and managing premier workplaces in gateway markets, focusing on long-term leases with financially strong clients, validated by outperformance in occupancy and rental rates[204](index=204&type=chunk) - The company's Central Business District (CBD) assets, representing approximately **89% of its annualized rental obligations**, were **89.9% occupied** and **92.5% leased** as of June 30, 2025[205](index=205&type=chunk) - The outlook is positive, supported by improving corporate confidence, a continued rebound in office utilization, and favorable macroeconomic developments, with return-to-office trends strongest in East Coast markets[207](index=207&type=chunk)[208](index=208&type=chunk)[211](index=211&type=chunk) [Leasing Activity and Occupancy](index=53&type=section&id=Leasing%20Activity%20and%20Occupancy) This section details the company's leasing volume, occupancy rates, and changes in cash rents across various regions - In Q2 2025, the company executed **91 leases** totaling over **1.1 million square feet** with a weighted-average lease term of **9.4 years**, and leasing volume over the last four quarters (**5.7 million sq. ft.**) was **18% higher** than the prior four-quarter period[213](index=213&type=chunk) - Overall in-service office and retail property occupancy was **86.4%** at June 30, 2025, a **0.5% decrease** from the prior quarter, with a leased percentage of **89.1%** representing approximately **1.3 million square feet** of signed leases yet to commence revenue recognition[215](index=215&type=chunk)[216](index=216&type=chunk) | Region | Leases Executed (sq. ft.) | Occupancy | Leased | Change in 2nd Gen Cash Rents | | :--- | :--- | :--- | :--- | :--- | | Boston | 235,824 | 89.7% | 91.2% | (0.13)% | | Los Angeles | 7,322 | 86.3% | 86.9% | (48.64)% | | New York | 344,170 | 84.4% | 90.2% | (15.18)% | | San Francisco | 159,599 | 78.7% | 80.7% | (18.71)% | | Seattle | 18,556 | 84.6% | 85.9% | —% | | Washington, DC | 356,350 | 90.5% | 92.3% | (14.51)% | | **Total / W.A.** | **1,121,821** | **86.4%** | **89.1%** | **(14.27)%** | [Results of Operations](index=56&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including net income, NOI, and key factors influencing period-over-period changes | Metric (Six Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to BXP, Inc. | $150,161 | $159,498 | ($9,337) | (5.85)% | | Net Income Attributable to BPLP | $170,702 | $181,907 | ($11,205) | (6.16)% | | Net Operating Income (NOI) | $1,025,878 | $1,017,537 | $8,341 | 0.82% | - For the six months ended June 30, 2025, Same Property Portfolio NOI decreased by **0.62%** (**$6.2 million**), driven by a **3.9% increase** in operating expenses (primarily repairs, maintenance, and utilities) which offset a **1.16% increase** in rental revenue[242](index=242&type=chunk)[245](index=245&type=chunk)[248](index=248&type=chunk) - Interest expense increased by **$14.7 million** for the six months ended June 30, 2025, primarily due to the issuance of **$850 million** of 5.750% senior notes in August 2024 and higher borrowings on commercial paper[288](index=288&type=chunk)[289](index=289&type=chunk) - For the three months ended June 30, 2025, Net Income Attributable to BXP, Inc. increased by **$9.4 million**, driven by an **$18.4 million gain** on the sale of real estate, which offset a **$13.1 million increase** in interest expense[298](index=298&type=chunk)[300](index=300&type=chunk) [Liquidity and Capital Resources](index=77&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, available credit, development funding, and debt structure to meet financial obligations - As of July 31, 2025, the company had approximately **$255.6 million** in available cash and approximately **$1.0 billion** available under BPLP's Revolving Facility after backstopping its commercial paper program[360](index=360&type=chunk) - The company is actively negotiating the sale of nine land sites and empty buildings, which could generate approximately **$300 million** in gross proceeds over the next 24 months, with definitive agreements in place for five sites totaling **$176.3 million**[361](index=361&type=chunk)[362](index=362&type=chunk) - As of June 30, 2025, the company has **11 properties** under development/redevelopment, with a total estimated investment of **$4.3 billion**, and approximately **$2.9 billion** remains to be funded through 2031[365](index=365&type=chunk)[367](index=367&type=chunk) | Debt Summary | June 30, 2025 (in thousands) | | :--- | :--- | | Unsecured Senior Notes, net | $9,800,577 | | Unsecured Commercial Paper | $750,000 | | Unsecured Line of Credit | $185,000 | | Unsecured Term Loans, net | $796,640 | | Mortgage Notes, net | $4,278,788 | | **Total Consolidated Debt** | **$15,811,005** | [Funds from Operations (FFO)](index=91&type=section&id=Funds%20from%20Operations%20%28FFO%29) This section presents the Funds from Operations (FFO) for BXP, Inc. and BPLP for the three months ended June 30 | FFO Metric (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | FFO attributable to BXP, Inc. | $271,652 | $278,399 | | Diluted FFO attributable to BXP, Inc. | $271,713 | $278,430 | | FFO attributable to BPLP | $301,769 | $310,956 | [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=96&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Primary market risk is interest rate exposure; **$1.6 billion** variable-rate debt, 100 bps hike increases interest expense by **$12.5 million** - As of June 30, 2025, approximately **$13.3 billion** of indebtedness bore fixed interest rates, while approximately **$2.5 billion** was at variable rates, of which **$900.0 million** has been hedged with interest rate swaps[422](index=422&type=chunk) - A **100 basis point increase** in market interest rates on variable rate debt would have increased interest expense by approximately **$6.3 million** for Q2 2025 and **$12.5 million** for the six months ended June 30, 2025[424](index=424&type=chunk) [ITEM 4. Controls and Procedures](index=97&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls for BXP, Inc. and BPLP were effective, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer of BXP, Inc. concluded that the disclosure controls and procedures for both BXP, Inc. and Boston Properties Limited Partnership were effective as of the end of the period covered by the report[427](index=427&type=chunk)[429](index=429&type=chunk) - No changes in internal control over financial reporting occurred during the second quarter of fiscal year 2025 that materially affected, or are reasonably likely to materially affect, internal controls[428](index=428&type=chunk)[430](index=430&type=chunk) [PART II. OTHER INFORMATION](index=98&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [ITEM 1. Legal Proceedings](index=98&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in ordinary legal proceedings, generally insured, with no expected material adverse effect on financial condition or results - The company states 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 position, results of operations, or liquidity[433](index=433&type=chunk) [ITEM 1A. Risk Factors](index=98&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors were reported from those disclosed in the Annual Report on Form 10-K for December 31, 2024 - There were no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024[434](index=434&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=98&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) BPLP issued **40,669 common units** to BXP for incentive plans, and BXP repurchased shares for employee terminations and tax obligations - BPLP issued an aggregate of **40,669 common units** to BXP in exchange for approximately **$60.85** in proceeds from BXP's common stock issuances under its 2021 Stock Incentive Plan during Q2 2025[438](index=438&type=chunk) - BXP repurchased a total of **1,615 shares** of common stock during the quarter, primarily related to employee terminations and tax withholding obligations on vested restricted stock[436](index=436&type=chunk)[437](index=437&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=99&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults on its senior securities during the reporting period - None[441](index=441&type=chunk) [ITEM 4. Mine Safety Disclosures](index=99&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The company reported no mine safety disclosures for the period - None[442](index=442&type=chunk) [ITEM 5. Other Information](index=99&type=section&id=ITEM%205.%20Other%20Information) No other material information was reported, and no directors or officers modified Rule 10b5-1 trading arrangements - During the three months ended June 30, 2025, no directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement[445](index=445&type=chunk) [ITEM 6. Exhibits](index=100&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including credit agreement amendments, CEO/CFO certifications, and XBRL data files - The exhibits filed with this report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act for both BXP, Inc. and Boston Properties Limited Partnership, as well as Inline XBRL data files[446](index=446&type=chunk)

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $1.71 per share, which is $0.05 above the midpoint of guidance and $0.04 above consensus estimates for the quarter [41][42] - The midpoint of the full-year earnings guidance for 2025 has been raised by $0.02, reflecting strong operational performance [7][46] - The total portfolio occupancy for the second quarter ended at 86.4%, a decline of 50 basis points [26] Business Line Data and Key Metrics Changes - The company completed over 1,100,000 square feet of leasing in the quarter, bringing total leasing in 2025 to 2,200,000 square feet [7] - The leasing volume over the last four quarters was 5,700,000 square feet, which is 18% higher than the prior four quarters [7] - The development portfolio lease percentage increased by 500 basis points to 67% [31] Market Data and Key Metrics Changes - Office sales volume increased to $14.2 billion, up 80% from the prior quarter and 125% from the second quarter of last year [11] - The vacancy rate for premier workplaces in core CBD markets is 6.3%, significantly lower than the broader market [17] - In San Francisco, there has been a reduction in rental rates, with deals now being done in the mid-threes per square foot [75] Company Strategy and Development Direction - The company is proceeding with the development of a premier workplace at 343 Madison Avenue, with a total development cost of just under $2 billion [15][16] - The company is exploring the sale of non-income producing assets to generate nearly $300 million in net proceeds over the next two years [18] - The strategy focuses on high-quality assets in gateway markets, with a strong emphasis on tenant quality and long-term leases [60][62] Management's Comments on Operating Environment and Future Outlook - Management noted that corporate confidence is improving, driven by favorable economic conditions and a pro-growth tax bill [8] - The return to office behavior is more advanced in East Coast markets, particularly New York City, compared to the West Coast [10] - The company expects to gain occupancy, revenue, and FFO in the coming years, supported by limited rollover in 2026 and 2027 [21] Other Important Information - The company has a strong pipeline of leases in negotiation, totaling 1,800,000 square feet, with additional letters of intent at 343 Madison [25] - The upcoming Investor Day is scheduled for September 8, 2025, in New York City [48] Q&A Session Questions and Answers Question: Outlook for the unlevered return on 343 Madison - The expected unlevered cash yield upon delivery is between 7.5% to 8%, with a potential mid to high teens IRR on a levered basis [52] Question: Impact of AI on space needs - Management believes AI will create jobs at the top of the intellectual pyramid, leading to increased demand for high-quality office space in gateway markets [56][60] Question: Clarification on capitalized interest for 343 Madison - The capitalized interest is based on a blended rate of around 7.5% for the four-year development period, with actual capitalized interest potentially being lower [67] Question: Mark to market report for the quarter - The mark to market was slightly up in Boston and New York, but down in Washington, DC, and the West Coast, reflecting varying demand conditions [72][75] Question: Terms of the MTA ground lease for 343 Madison - The ground lease is a 99-year lease with known increases in payments, making it attractive for underwriting [78][80] Question: Guidance and timing of earnings - The bottom end of the annual range was increased due to strong portfolio performance, but higher expected expenses in the third quarter tempered the overall guidance increase [82][85]

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $1.71 per share, which is $0.05 above the midpoint of guidance and $0.04 above consensus estimates for the quarter [38] - The midpoint of the full-year 2025 earnings guidance has been raised by $0.02, reflecting strong operational performance [6][41] - The total portfolio occupancy for the second quarter ended at 86.4%, a decline of 50 basis points [24] Business Line Data and Key Metrics Changes - The company completed over 1,100,000 square feet of leasing in the quarter, bringing total leasing in 2025 to 2,200,000 square feet [6] - The leasing volume over the last four quarters was 5,700,000 square feet, which is 18% higher than the prior four quarters [6] - The development portfolio lease percentage increased by 500 basis points to 67% this quarter [28] Market Data and Key Metrics Changes - Office sales volume increased to $14.2 billion, up 80% from the prior quarter and 125% from the second quarter of last year [11] - The vacancy rate for trophy buildings in Midtown remains very low at 6.3%, with office rents growing at rates well above inflation [16] - The overall mark to market of leases signed this quarter was flat, with modest increases in Boston and New York, and slight decreases on the West Coast and DC [29] Company Strategy and Development Direction - The company is proceeding with the development of a new office building at 343 Madison Avenue, with a total development cost of just under $2 billion [14] - The company is exploring the sale of non-income producing assets to generate nearly $300 million in net proceeds over the next two years [16][17] - The strategy focuses on high-quality assets in prime locations, with a strong emphasis on tenant quality and long-term leases [55] Management's Comments on Operating Environment and Future Outlook - Management noted that corporate confidence is improving, driven by favorable economic conditions and a pro-growth tax bill [7] - The return to office behavior is advancing, particularly in East Coast markets, which is expected to enhance leasing activity [9] - The company anticipates occupancy, revenue, and FFO growth in the coming years, supported by limited rollover in 2026 and 2027 [19] Other Important Information - The company has executed a letter of intent with an anchor client for approximately 30% of the new building at 343 Madison Avenue [14] - The company is actively engaged in discussions for additional leasing opportunities, with 1,800,000 square feet of leases in negotiation post-Q2 [23] - The upcoming Investor Day is scheduled for September 8, 2025, in New York City [44] Q&A Session Summary Question: Outlook for the unlevered return on 343 Madison - The expected unlevered cash yield upon delivery is between 7.5% to 8%, with a potential mid to high teens IRR on a levered basis [48] Question: Impact of AI on demand for office space - AI is expected to drive job creation at the top of the intellectual pyramid, with companies in AI experiencing growth in demand for office space [51][54] Question: Clarification on capitalized interest for 343 Madison - Capitalized interest is based on a blended rate of around 7.5% for the four-year development period, with actual capitalized interest potentially being lower [61] Question: Mark to market performance this quarter - The mark to market was slightly worse than last quarter, with variations in rental rates across different markets impacting the overall performance [66] Question: Terms of the MTA ground lease for 343 Madison - The ground lease is a 99-year lease with predictable increases in payments, making it attractive for underwriting [73][75] Question: Guidance and earnings cadence for the second half of the year - The company expects a lower FFO in Q3 due to seasonal operating expenses, with a higher impact anticipated in Q4 [80]

Core Insights - Boston Properties Inc. (BXP) reported second-quarter 2025 funds from operations (FFO) per share of $1.71, exceeding the Zacks Consensus Estimate of $1.67, but down 3.4% year over year [1][9] - The quarterly results were driven by better-than-expected revenues due to strong leasing activity, although lower occupancy and increased interest expenses negatively impacted year-over-year FFO per share growth [1][5] - BXP revised its guidance for 2025 FFO per share to a range of $6.84-$6.92, up from the previous range of $6.80-$6.92 [10] Financial Performance - Quarterly lease revenues reached $805.9 million, reflecting a 1.9% year-over-year increase, while total revenues rose 2.1% to $868.5 million [2] - Rental revenues for the office portfolio were $806.7 million, up 1% year over year, and the hotel & residential segment reported $27.3 million, also indicating a 1% increase [3] - BXP's share of same-property net operating income (NOI) on a cash basis was $467.9 million, a 1.7% increase from the prior year, while EBITDAre on a cash basis was $461.8 million, slightly down from $466.2 million [4] Occupancy and Expenses - The occupancy rate for in-service properties decreased by 50 basis points to 86.4%, attributed to the lease expiration of 360,000 square feet in the Boston area [5] - Interest expenses increased by 8.8% year over year to $162.8 million [5] Portfolio Activity - During the second quarter, BXP executed 91 leases covering over 1.1 million square feet, with a weighted average lease term of 9.4 years [6] - The company initiated the redevelopment of 17 Hartwell Avenue into a 312-unit residential project in Lexington, MA, expected to be completed by mid-2027 [6] Balance Sheet - BXP ended the second quarter with cash and cash equivalents of $447 million, an increase from $398.1 million at the end of the first quarter [7] - The company's share of net debt to EBITDAre, annualized, improved to 8.18 from 8.33 [7] Guidance - For the third quarter of 2025, BXP projects FFO per share to be between $1.69 and $1.71 [8] - The company estimates a change in its share of same-property NOI on a cash basis to be between 1.00% and 1.50% for 2025 [10]

Group 1 - Boston Properties reported revenue of $805.94 million for the quarter ended June 2025, a year-over-year increase of 2% [1] - The EPS for the same period was $1.71, compared to $0.51 a year ago, indicating significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $800.88 million, resulting in a surprise of +0.63% [1] Group 2 - The company delivered an EPS surprise of +2.4%, with the consensus EPS estimate being $1.67 [1] - Occupancy rate of in-service properties was 86.4%, slightly below the estimated 86.7% [4] - Revenue from parking and other sources was $34.8 million, exceeding the estimated $34.08 million, representing a +0.5% change year-over-year [4] Group 3 - Hotel revenue was reported at $14.77 million, below the estimated $15.56 million, reflecting a -0.3% change compared to the previous year [4] - Revenue from development and management services was $8.85 million, surpassing the estimated $8.23 million, showing a +39.3% change year-over-year [4] - The net earnings per share (diluted) was $0.56, exceeding the average estimate of $0.45 from six analysts [4] Group 4 - Shares of Boston Properties returned +3.2% over the past month, compared to the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Boston Properties (BXP) reported quarterly funds from operations (FFO) of $1.71 per share, exceeding the Zacks Consensus Estimate of $1.67 per share, but down from $1.77 per share a year ago, representing an FFO surprise of +2.40% [1] - The company posted revenues of $805.94 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.63%, compared to year-ago revenues of $790.55 million, and has topped consensus revenue estimates three times over the last four quarters [2] - The current consensus FFO estimate for the coming quarter is $1.75 on revenues of $808.95 million, and for the current fiscal year, it is $6.86 on revenues of $3.23 billion [7] Group 2 - Boston Properties shares have underperformed the market, losing about 6.4% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 34% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8] - The estimate revisions trend for Boston Properties was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

[Overview](index=2&type=section&id=OVERVIEW) [Company Profile](index=2&type=section&id=Company%20Profile) BXP, Inc. is the largest publicly traded developer, owner, and manager of premier workplaces in six dynamic gateway markets in the US, operating as a REIT - BXP is the **largest publicly traded developer, owner, and manager of premier workplaces** in the US, concentrated in Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC[3](index=3&type=chunk) - As of June 30, 2025, BXP's portfolio totals **53.7 million square feet and 186 properties**, including 10 under construction/redevelopment, comprising 162 office, 14 retail, 9 residential, and 1 hotel property[3](index=3&type=chunk) - BXP has earned a **thirteenth consecutive GRESB "Green Star" recognition** and the **highest GRESB 5-star Rating**, recognized by TIME Magazine as one of the world's most sustainable companies[3](index=3&type=chunk) [Forward-Looking Statements](index=2&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section outlines the nature of forward-looking statements, cautioning investors about inherent risks and uncertainties that could cause actual results to differ materially from projections - Forward-looking statements are based on current plans and assumptions, but actual results may differ due to known and unknown risks, uncertainties, and other factors beyond BXP's control[4](index=4&type=chunk) - Key risk factors include adverse changes in economic and capital market conditions (inflation, interest rates, supply chain), general real estate industry risks (lease terms, client preferences, competition), political conditions, geopolitical conflicts, and financing costs[4](index=4&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) The report includes non-GAAP financial measures, reconciled to GAAP, to provide additional insights into the company's financial condition and operations - Non-GAAP financial measures are included with GAAP reconciliations to provide useful information on BXP's financial condition and operations[5](index=5&type=chunk) - "BXP's Share" is a non-GAAP measure that adjusts consolidated amounts for unconsolidated and consolidated joint venture interests, aiming to reflect the company's true economic interest[6](index=6&type=chunk) - Investors are cautioned that "BXP's Share" should not substitute GAAP financial information but rather supplement it, as ownership percentages may not fully depict all legal and economic implications of joint ventures[6](index=6&type=chunk) [General Information & Strategy](index=3&type=section&id=GENERAL%20INFORMATION) This section provides corporate contact details, a snapshot of key financial and operational metrics, and outlines BXP's core business strategy focused on maximizing return on investment Snapshot (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Fiscal Year-End | December 31 | | Total Properties | 186 | | Total Square Feet | 53.7 million | | Common shares outstanding (as-converted) | 176.8 million | | Closing Price (end of quarter) | $67.47 per share | | Dividend - Quarter/Annualized | $0.98/$3.92 per share | | Dividend Yield | 5.8% | | Consolidated Market Capitalization | $27.7 billion | | BXP's Share of Market Capitalization | $27.8 billion | | Unsecured Senior Debt Ratings | BBB (S&P); Baa2 (Moody's) | - BXP's primary business objective is to maximize return on investment by embracing leadership in premier workplaces, focusing on dynamic gateway markets (Boston, LA, NY, SF, Seattle, DC), and investing in high-quality buildings with unique amenities[14](index=14&type=chunk)[16](index=16&type=chunk) - Strategic tenets include maintaining full-service real estate capabilities, pursuing attractive asset class adjacencies (life sciences, residential), leading in sustainability innovation, ensuring a strong balance sheet, and fostering a culture of integrity and excellence[16](index=16&type=chunk) [Financial Information](index=6&type=section&id=FINANCIAL%20INFORMATION) [Guidance and Assumptions](index=6&type=section&id=GUIDANCE) BXP provides guidance for Q3 and full-year 2025 diluted EPS and FFO per share, based on current market conditions and operational assumptions Projected EPS and FFO per share (Q3 2025 & Full Year 2025) | Metric | Q3 2025 Low | Q3 2025 High | Full Year 2025 Low | Full Year 2025 High | | :--- | :--- | :--- | :--- | :--- | | Projected EPS (diluted) | $0.41 | $0.43 | $1.74 | $1.82 | | Projected FFO per share (diluted) | $1.69 | $1.71 | $6.84 | $6.92 | Full Year 2025 Assumptions | Metric | Low | High | | :--- | :--- | :--- | | Average In-service portfolio occupancy | 86.50 % | 88.00 % | | Change in BXP's Share of Same Property net operating income (excluding termination income) | — % | 0.50 % | | Change in BXP's Share of Same Property net operating income - cash (excluding termination income) | 1.00 % | 1.50 % | | BXP's Share of straight-line rent and fair value lease revenue (non-cash revenue) | $100,000 | $115,000 | | Consolidated net interest expense | $(625,000) | $(620,000) | [Financial Highlights](index=7&type=section&id=Financial%20Highlights) For the three months ended June 30, 2025, BXP reported increased net income and FFO per share compared to the previous quarter, with slight revenue increase and stable key ratios Financial Highlights (Three Months Ended) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Net income attributable to BXP, Inc. | $88,977 | $61,177 | +45.45% | | Net income attributable to BXP, Inc. per share - diluted | $0.56 | $0.39 | +43.59% | | FFO attributable to BXP, Inc. | $271,652 | $260,591 | +4.24% | | Diluted FFO per share | $1.71 | $1.64 | +4.27% | | Revenue | $868,457 | $865,215 | +0.37% | | BXP's Share of revenue | $835,667 | $836,192 | -0.06% | | Interest Coverage Ratio (excluding capitalized interest) | 2.85 | 2.83 | +0.71% | | Fixed Charge Coverage Ratio | 2.23 | 2.38 | -6.30% | | BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) | 8.18 | 8.33 | -1.80% | | Occupancy % of In-Service Properties | 86.4 % | 86.9 % | -0.50 pp | | Leased % of In-Service Properties | 89.1 % | 89.4 % | -0.30 pp | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, BXP's total assets increased slightly to $25.62 billion, driven by real estate and construction in progress, while total liabilities also increased to $17.77 billion Consolidated Balance Sheet Highlights (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Total assets | $25,621,190 | $25,436,521 | +0.72% | | Total real estate | $21,262,840 | $21,119,163 | +0.68% | | Construction in progress | $1,047,687 | $907,989 | +15.39% | | Cash and cash equivalents | $446,953 | $398,126 | +12.26% | | Total liabilities | $17,766,779 | $17,577,740 | +1.08% | | Unsecured commercial paper | $750,000 | $500,000 | +50.00% | | Total equity | $7,847,430 | $7,849,841 | -0.03% | [Consolidated Income Statements](index=10&type=section&id=Consolidated%20Income%20Statements) BXP's net income increased significantly to $88.98 million in Q2 2025, primarily due to a gain on sale of real estate and increased hotel revenue Consolidated Income Statement Highlights (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Total revenue | $868,457 | $865,215 | +0.37% | | Lease revenue | $805,935 | $811,102 | -0.64% | | Hotel revenue | $14,773 | $9,597 | +53.93% | | Total expenses | $612,223 | $616,801 | -0.74% | | General and administrative | $42,516 | $52,284 | -18.70% | | Gain on sale of real estate | $18,390 | $0 | N/A | | Net income attributable to BXP, Inc. | $88,977 | $61,177 | +45.45% | [Funds From Operations (FFO)](index=11&type=section&id=Funds%20From%20Operations%20(FFO)) FFO attributable to BXP, Inc. increased to $271.65 million ($1.71 per diluted share) in Q2 2025, driven by higher net income and adjustments for depreciation and amortization FFO Attributable to BXP, Inc. (in thousands, except per share) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Net income attributable to BXP, Inc. | $88,977 | $61,177 | +45.45% | | FFO attributable to BXP, Inc. | $271,652 | $260,591 | +4.24% | | Diluted FFO per share | $1.71 | $1.64 | +4.27% | | BXP, Inc.'s percentage share of Basic FFO | 90.02 % | 90.01 % | +0.01 pp | [Funds Available for Distribution (FAD)](index=12&type=section&id=Funds%20Available%20for%20Distribution%20(FAD)) Funds Available for Distribution (FAD) decreased to $203.59 million in Q2 2025, leading to an increase in the FAD Payout Ratio, mainly due to higher tenant improvements and capital expenditures Funds Available for Distribution (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Basic FFO | $301,769 | $289,513 | +4.23% | | Funds available for distribution (FAD) | $203,592 | $213,885 | -4.81% | | Distributions to common shareholders and unitholders | $173,357 | $173,306 | +0.03% | | FAD Payout Ratio | 85.15 % | 81.03 % | +4.12 pp | - The decrease in FAD was primarily influenced by higher BXP's Share of 2nd generation tenant improvements and leasing commissions (**$61.42 million** vs **$58.95 million** QoQ) and maintenance capital expenditures (**$30.21 million** vs **$18.31 million** QoQ)[30](index=30&type=chunk) [Net Operating Income (NOI)](index=13&type=section&id=Net%20Operating%20Income%20(NOI)) BXP's Share of NOI (excluding termination income) slightly increased to $492.78 million in Q2 2025 from $492.11 million in Q2 2024 Net Operating Income (in thousands) | Metric | 30-Jun-25 | 30-Jun-24 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Operating Income (NOI) | $514,080 | $508,717 | +1.05% | | BXP's Share of NOI | $493,547 | $492,913 | +0.13% | | BXP's Share of NOI (excluding termination income) | $492,784 | $492,112 | +0.14% | [Same Property Net Operating Income (NOI) by Reportable Segment](index=15&type=section&id=Same%20Property%20Net%20Operating%20Income%20(NOI)%20by%20Reportable%20Segment) BXP's share of Same Property NOI (excluding termination income) decreased by 0.2% YoY, but BXP's share of Same Property NOI - cash increased by 1.7% YoY, indicating stronger cash performance Same Property NOI (excluding termination income) (in thousands) | Metric | 30-Jun-25 | 30-Jun-24 | Change (YoY) | | :--- | :--- | :--- | :--- | | Consolidated Total NOI (excluding termination income) | $499,975 | $500,675 | -0.1% | | Consolidated Total NOI - cash (excluding termination income) | $481,173 | $477,223 | +0.8% | | BXP's Share of Same Property NOI (excluding termination income) | $484,189 | $485,123 | -0.2% | | BXP's Share of Same Property NOI - cash (excluding termination income) | $467,927 | $459,928 | +1.7% | - Office rental revenue (excluding termination income) for consolidated properties increased by **1.0% YoY**, while operating expenses and real estate taxes increased by **2.8% YoY**[35](index=35&type=chunk) - BXP's share of unconsolidated joint ventures showed a **2.4% YoY increase** in rental revenue (excluding termination income) but a **1.5% YoY decrease** in NOI (excluding termination income)[35](index=35&type=chunk) [Capital Expenditures, Tenant Improvement Costs and Leasing Commissions](index=17&type=section&id=Capital%20Expenditures,%20Tenant%20Improvement%20Costs%20and%20Leasing%20Commissions) BXP's Share of Capital Expenditures increased significantly to $50.09 million in Q2 2025, driven by higher maintenance and planned capital expenditures BXP's Share of Capital Expenditures (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Maintenance capital expenditures | $32,934 | $20,186 | +63.16% | | Planned capital expenditures associated with acquisition properties | $5,977 | $1,349 | +343.07% | | Repositioning capital expenditures | $13,150 | $19,495 | -32.55% | | Hotel improvements, equipment upgrades and replacements | $859 | $159 | +440.25% | | BXP's Share of Capital Expenditures | $50,089 | $39,494 | +26.82% | 2nd Generation Tenant Improvements and Leasing Commissions | Metric | 30-Jun-25 | 31-Mar-25 | | :--- | :--- | :--- | | Square feet | 852,284 | 916,029 | | Tenant improvements and lease commissions PSF | $85.84 | $74.01 | [Acquisitions and Dispositions](index=18&type=section&id=Acquisitions%20and%20Dispositions) In the first half of 2025, BXP acquired a 19.46% ownership interest in 290 Coles Street for $20 million and disposed of 17 Hartwell Avenue for $21.84 million, recognizing an $18.39 million gain - BXP acquired a **19.46% ownership** in 290 Coles Street (560,000 SF, 670 units) in Jersey City, NJ, on March 5, 2025, with an initial investment of **$20 million** and future equity commitment of **$68.7 million**[40](index=40&type=chunk)[41](index=41&type=chunk) - BXP disposed of 17 Hartwell Avenue (30,000 SF) in Lexington, MA, on June 27, 2025, for **$21.84 million** in gross sales price, resulting in a book gain of **$18.39 million**; the property was sold to a joint venture where BXP holds a 20% ownership[41](index=41&type=chunk) [Development Activity](index=19&type=section&id=DEVELOPMENT%20ACTIVITY) [Construction in Progress](index=19&type=section&id=Construction%20in%20Progress) As of June 30, 2025, BXP has 3.29 million square feet across 10 properties under construction, with an additional 930,000 square feet commencing after June 30, 2025 Properties Under Construction at June 30, 2025 (BXP's Share) | Property Type | Square Feet | Estimated Total Investment | BXP's Share of Future Equity Requirement | Percentage Leased | Percentage placed in service | | :--- | :--- | :--- | :--- | :--- | :--- | | Office | 1,019,000 | $867,600 | $360,437 | 64 % | 19 % | | Lab/Life Sciences | 900,000 | $675,100 | $233,867 | 71 % | 10 % | | Residential | 1,342,100 | $722,400 | $446,585 | — % | — % | | Retail | 30,000 | $26,600 | $737 | 45 % | — % | | **Total (A)** | **3,291,100** | **$2,291,700** | **$1,041,626** | **67 %** | **14 %** | - Construction commenced after June 30, 2025, includes 343 Madison Avenue (Office, New York, NY) with **930,000 square feet** and an estimated total investment of **$1.97 billion**, where BXP is acquiring 100% interest[42](index=42&type=chunk)[43](index=43&type=chunk) [Land Parcels and Purchase Options](index=21&type=section&id=Land%20Parcels%20and%20Purchase%20Options) BXP holds owned land parcels and properties for redevelopment totaling approximately 16.58 million developable square feet, with additional land purchase options for 3.07 million developable square feet Owned Land Parcels and Properties Held for Redevelopment (as of June 30, 2025) | Location | Approximate Developable Square Feet | | :--- | :--- | | San Jose, CA | 2,830,000 | | Reston, VA | 2,490,000 | | New York, NY (25% ownership) | 2,000,000 | | Princeton, NJ | 1,723,000 | | San Jose, CA (55% ownership) | 1,088,000 | | Waltham, MA | 899,000 | | **Total** | **16,584,000** | Value Creation Pipeline - Land Purchase Options (as of June 30, 2025) | Location | Approximate Developable Square Feet | | :--- | :--- | | Boston, MA | 1,300,000 | | Waltham, MA | 1,200,000 | | Cambridge, MA | 573,000 | | **Total** | **3,073,000** | [Leasing Activity](index=22&type=section&id=LEASING%20ACTIVITY) [Leasing Activity Overview](index=22&type=section&id=Leasing%20Activity) For the first half of 2025, BXP saw 923,618 square feet of leases commence, with second-generation leases showing a 9.67% decrease in gross rents and a 14.27% decrease in net rents Leasing Activity (January 1, 2025 - June 30, 2025) | Metric | Value | | :--- | :--- | | Vacant space available at the beginning of the period | 6,348,177 SF | | Total leases commenced during the period | 923,618 SF | | Vacant space available for lease at the end of the period | 6,559,755 SF | | Net (increase)/decrease in available space | 211,578 SF (increase) | Second Generation Leasing Information (Q2 2025) | Metric | Value | | :--- | :--- | | Leases commencing during the period | 852,284 SF | | Weighted average lease term | 80 months | | Weighted average free rent period | 160 days | | Total transaction costs per square foot | $85.84 | | Increase (decrease) in gross rents | (9.67)% | | Increase (decrease) in net rents | (14.27)% | - Los Angeles, New York, San Francisco, and Washington, DC, all experienced significant decreases in second-generation cash rents, with Los Angeles showing the largest decline at **(33.56)% gross** and **(48.64)% net**[48](index=48&type=chunk) [Property Statistics](index=23&type=section&id=PROPERTY%20STATISTICS) [Portfolio Overview](index=23&type=section&id=Portfolio%20Overview) As of June 30, 2025, BXP's in-service portfolio totals 50.41 million rentable square feet, predominantly office, with Boston contributing the largest share of both rentable square footage and NOI Rentable Square Footage of In-Service Properties by Location and Unit Type (in thousands) | Location | Office | Retail | Residential | Hotel | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Boston | 14,481 | 1,146 | 550 | 330 | 16,507 | | Los Angeles | 2,184 | 124 | — | — | 2,307 | | New York | 12,111 | 478 | — | — | 12,589 | | San Francisco | 7,240 | 350 | 318 | — | 7,908 | | Seattle | 1,504 | 13 | — | — | 1,517 | | Washington, DC | 8,048 | 623 | 910 | — | 9,581 | | **Total** | **45,568** | **2,733** | **1,779** | **330** | **50,409** | | **% of Total** | **90.40 %** | **5.42 %** | **3.53 %** | **0.65 %** | **100.00 %** | BXP's Share of Rental Revenue by Unit Type (in thousands) | Unit Type | BXP's Share of Rental Revenue | % of Total | | :--- | :--- | :--- | | Office | $735,674 | 89.46 % | | Retail | $56,769 | 6.90 % | | Residential | $15,338 | 1.86 % | | Hotel | $14,671 | 1.78 % | | **Total** | **$822,452** | **100.00 %** | Percentage of BXP's Share of NOI (excluding termination income) by Location | Location | CBD | Suburban | Total | | :--- | :--- | :--- | :--- | | Boston | 33.27 % | 6.11 % | 39.38 % | | New York | 21.86 % | 1.57 % | 23.43 % | | San Francisco | 14.57 % | 1.65 % | 16.22 % | | Washington, DC | 14.93 % | 0.13 % | 15.06 % | | **Total** | **90.54 %** | **9.46 %** | **100.00 %** | [Residential and Hotel Performance](index=24&type=section&id=Residential%20and%20Hotel%20Performance) Residential NOI decreased slightly QoQ, while Hotel NOI significantly increased, with Boston residential properties showing YoY improvements in rental rates and occupancy Residential and Hotel Net Operating Income (in thousands) | Metric | 30-Jun-25 (Residential) | 31-Mar-25 (Residential) | 30-Jun-25 (Hotel) | 31-Mar-25 (Hotel) | | :--- | :--- | :--- | :--- | :--- | | Rental Revenue | $12,532 | $12,348 | $14,773 | $9,597 | | Net Operating Income (NOI) | $5,954 | $6,451 | $5,408 | $2,032 | | BXP's Share of NOI | $8,102 | $8,437 | $5,408 | $2,032 | Residential Rental Rates and Occupancy (YoY Change) | Location | Metric | 30-Jun-25 | 30-Jun-24 | Percent Change | | :--- | :--- | :--- | :--- | :--- | | Boston | Avg Monthly Rental Rate | $4,066 | $3,939 | 3.22 % | | | Avg Physical Occupancy | 96.15 % | 95.04 % | 1.17 % | | San Francisco | Avg Monthly Rental Rate | $2,996 | $3,061 | (2.12)% | | | Avg Physical Occupancy | 89.64 % | 87.06 % | 2.96 % | | Washington, DC | Avg Physical Occupancy | 83.01 % | 96.00 % | (13.53)% | Hotel Performance (Boston Marriott Cambridge, YoY Change) | Metric | 30-Jun-25 | 30-Jun-24 | Percent Change | | :--- | :--- | :--- | :--- | | Average Occupancy | 82.80 % | 80.60 % | 2.73 % | | Revenue Per Available Room | $308.90 | $299.94 | 2.99 % | - The significant decrease in Washington, DC residential occupancy is attributed to the initial lease-up period of Skymark, completed in December 2024, with physical occupancy at **83.66%** as of July 25, 2025[57](index=57&type=chunk) [In-Service Property Listing](index=25&type=section&id=In-Service%20Property%20Listing) This section provides a detailed listing of BXP's in-service properties, categorized by CBD and Suburban markets, including square footage, occupancy, and rental obligations CBD Office Properties - Boston (Selected) | Property | Square Feet | Occupied % | Leased % | Annualized Rental Obligations Per Occupied SF | | :--- | :--- | :--- | :--- | :--- | | 200 Clarendon Street | 1,725,721 | 99.9 % | 99.9 % | $87.14 | | 800 Boylston Street - The Prudential Center | 1,274,927 | 97.4 % | 97.7 % | $73.36 | | 100 Federal Street (55% ownership) | 1,233,546 | 91.4 % | 97.1 % | $77.78 | | **Subtotal Boston CBD** | **11,141,004** | **97.0 %** | **98.5 %** | **$86.20** | CBD Office Properties - New York (Selected) | Property | Square Feet | Occupied % | Leased % | Annualized Rental Obligations Per Occupied SF | | :--- | :--- | :--- | :--- | :--- | | 767 Fifth Avenue (The GM Building) (60% ownership) | 1,970,335 | 92.3 % | 98.5 % | $169.42 | | 601 Lexington Avenue (55% ownership) | 1,671,682 | 99.4 % | 99.4 % | $99.93 | | 399 Park Avenue | 1,567,470 | 100.0 % | 100.0 % | $104.78 | | **Subtotal New York CBD** | **10,395,945** | **87.2 %** | **93.0 %** | **$109.51** | - The total in-service properties portfolio (excluding hotel and residential) has an overall occupied percentage of **86.4%** and a leased percentage of **89.1%**, with an annualized rental obligation of **$82.81 per occupied square foot**[61](index=61&type=chunk) [Top 20 Clients Listing and Portfolio Client Diversification](index=29&type=section&id=TOP%2020%20CLIENTS) BXP's top 20 clients account for 28.68% of annualized rental obligations and 22.28% of square feet, with Salesforce being the largest client Top 20 Clients (as of June 30, 2025) | Client | BXP's Share of Annualized Rental Obligations | Weighted Average Remaining Lease Term (years) | | :--- | :--- | :--- | | Salesforce | 3.36 % | 6.7 | | Google | 2.90 % | 11.8 | | Akamai Technologies | 2.16 % | 9.3 | | Kirkland & Ellis | 1.81 % | 12.1 | | Biogen | 1.79 % | 2.9 | | **Top 20 Clients Total** | **28.68 %** | **9.3** | Notable Signed Deals (with future occupancy) | Client | Property | Square Feet | | :--- | :--- | :--- | | AstraZeneca | 290 Binney Street | 573,000 | | Defense Technology Company | 1050 Winter Street | 162,000 | | McDermott Will & Emery LLP | 725 12th Street, NW | 152,000 | | Cooley | 725 12th Street, NW | 126,000 | [Occupancy by Location](index=30&type=section&id=Occupancy%20by%20Location) Total in-service office properties showed a slight quarter-over-quarter decrease in occupancy from 86.9% to 86.4%, while Same Property office occupancy also decreased year-over-year Total In-Service Office Properties - Occupancy (Quarter-over-Quarter) | Location | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Boston CBD | 97.0 % | 96.3 % | +0.7 pp | | Boston Suburban | 71.6 % | 77.0 % | -5.4 pp | | New York CBD | 87.2 % | 88.1 % | -0.9 pp | | San Francisco CBD | 81.8 % | 81.7 % | +0.1 pp | | Seattle CBD | 84.6 % | 81.9 % | +2.7 pp | | Washington, DC CBD | 91.1 % | 91.9 % | -0.8 pp | | **Total Portfolio** | **86.4 %** | **86.9 %** | **-0.5 pp** | Same Property Office Properties - Occupancy (Year-over-Year) | Location | 30-Jun-25 | 30-Jun-24 | Change (YoY) | | :--- | :--- | :--- | :--- | | Boston CBD | 96.9 % | 95.3 % | +1.6 pp | | New York CBD | 87.2 % | 90.8 % | -3.6 pp | | San Francisco CBD | 81.8 % | 84.0 % | -2.2 pp | | Seattle CBD | 84.6 % | 80.2 % | +4.4 pp | | Washington, DC Suburban | 68.4 % | 84.5 % | -16.1 pp | | **Total Portfolio** | **86.8 %** | **87.7 %** | **-0.9 pp** | [Debt and Capitalization](index=31&type=section&id=DEBT%20AND%20CAPITALIZATION) [Capital Structure](index=31&type=section&id=Capital%20Structure) As of June 30, 2025, BXP's consolidated debt totaled $15.81 billion, primarily unsecured senior notes and mortgage notes, resulting in a Consolidated Debt/Consolidated Market Capitalization ratio of 57.00% Consolidated Debt (in thousands) | Debt Type | Outstanding Principal | | :--- | :--- | | Mortgage Notes Payable | $4,300,161 | | Unsecured Line of Credit | $185,000 | | Unsecured Term Loans | $800,000 | | Unsecured Commercial Paper | $750,000 | | Unsecured Senior Notes, at face value | $9,850,000 | | **Outstanding Principal Total** | **$15,885,161** | | **Consolidated Debt** | **$15,811,005** | Capitalization Ratios | Metric | Value | | :--- | :--- | | Consolidated Market Capitalization | $27,739,296 | | Consolidated Debt/Consolidated Market Capitalization | 57.00 % | | BXP's Share of Market Capitalization | $27,761,978 | | BXP's Share of Debt/BXP's Share of Market Capitalization | 57.03 % | - The largest mortgage note payable is **$2.3 billion** for 767 Fifth Avenue (The GM Building), maturing in June 2027 with a GAAP interest rate of **3.64%**[74](index=74&type=chunk) - Unsecured Senior Notes include **$3.35 billion** in "green bonds" with various maturities and coupon rates[75](index=75&type=chunk) [Debt Analysis](index=33&type=section&id=Debt%20Analysis) BXP maintains a $2.25 billion unsecured revolving credit facility, with its debt predominantly unsecured (72.94%) and fixed-rate (89.68%), having a weighted average maturity of 4.1 years Unsecured Revolving Credit Facility (in thousands) | Metric | Outstanding at June 30, 2025 | Remaining Capacity at June 30, 2025 | | :--- | :--- | :--- | | Unsecured Line of Credit | $185,000 | $2,065,000 | | Less: Unsecured Commercial Paper | — | $750,000 | | Less: Letters of Credit | — | $5,393 | | **Total Remaining Capacity** | **N/A** | **$1,309,607** | Unsecured and Secured Debt Analysis | Debt Type | % of Total Debt | Weighted Average Stated Rates | Weighted Average GAAP Rates | Maturity (years) | | :--- | :--- | :--- | :--- | :--- | | Unsecured Debt | 72.94 % | 4.19 % | 4.29 % | 4.4 | | Secured Debt | 27.06 % | 3.80 % | 4.10 % | 3.3 | | **Consolidated Debt** | **100.00 %** | **4.08 %** | **4.24 %** | **4.1** | Floating and Fixed Rate Debt Analysis | Debt Type | % of Total Debt | Weighted Average Stated Rates | Weighted Average GAAP Rates | Maturity (years) | | :--- | :--- | :--- | :--- | :--- | | Floating Rate Debt | 10.32 % | 5.02 % | 5.09 % | 2.2 | | Fixed Rate Debt | 89.68 % | 3.97 % | 4.14 % | 4.4 | | **Consolidated Debt** | **100.00 %** | **4.08 %** | **4.24 %** | **4.1** | [Senior Unsecured Debt Covenant Compliance Ratios](index=34&type=section&id=Senior%20Unsecured%20Debt%20Covenant%20Compliance%20Ratios) BXP's Operating Partnership was in compliance with all senior unsecured debt covenants as of June 30, 2025, with key ratios well within required limits - BXP's Operating Partnership was in compliance with all senior unsecured debt covenants as of June 30, 2025[86](index=86&type=chunk) Senior Unsecured Debt Covenant Compliance Ratios (as of June 30, 2025) | Covenant | Test | Actual (Prior to Dec 4, 2017 Notes) | Actual (On or After Dec 4, 2017 Notes) | | :--- | :--- | :--- | :--- | | Total Outstanding Debt/Total Assets | Less than 60% | 47.8 % | 44.8 % | | Secured Debt/Total Assets | Less than 50% | 16.0 % | 15.0 % | | Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) | Greater than 1.50x | 2.94 | 2.94 | | Unencumbered Assets/Unsecured Debt | Greater than 150% | 233.2 % | 251.2 % | [Net Debt to EBITDAre](index=35&type=section&id=Net%20Debt%20to%20EBITDAre) BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) improved slightly to 8.18x as of June 30, 2025, driven by increased EBITDAre and a slight decrease in Net Debt BXP's Share of EBITDAre and EBITDAre – cash (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | BXP's Share of EBITDAre | $469,962 | $458,279 | +2.55% | | BXP's Share of EBITDAre – cash | $461,815 | $455,565 | +1.37% | | BXP's Share of EBITDAre (Annualized) | $1,879,848 | $1,833,116 | +2.55% | BXP's Share of Net Debt (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Consolidated debt | $15,811,005 | $15,671,692 | +0.89% | | Net debt | $15,364,052 | $15,273,566 | +0.59% | | BXP's Share of Net Debt | $15,384,354 | $15,270,263 | +0.75% | - The ratio of BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) improved from **8.33x** in Q1 2025 to **8.18x** in Q2 2025[90](index=90&type=chunk) [Debt Ratios](index=36&type=section&id=Debt%20Ratios) BXP's Interest Coverage Ratio (excluding capitalized interest) slightly increased to 2.85x in Q2 2025, while the Fixed Charge Coverage Ratio decreased to 2.23x due to higher capital expenditures Interest Coverage Ratio | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Adjusted interest expense excluding capitalized interest | $162,073 | $161,111 | +0.60% | | Adjusted interest expense including capitalized interest | $176,089 | $173,263 | +1.63% | | BXP's Share of EBITDAre – cash | $461,815 | $455,565 | +1.37% | | Interest Coverage Ratio (excluding capitalized interest) | 2.85 | 2.83 | +0.71% | | Interest Coverage Ratio (including capitalized interest) | 2.62 | 2.63 | -0.38% | Fixed Charge Coverage Ratio | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Total Fixed Charges | $207,159 | $191,729 | +8.05% | | BXP's Share of EBITDAre – cash | $461,815 | $455,565 | +1.37% | | Fixed Charge Coverage Ratio | 2.23 | 2.38 | -6.30% | - The increase in Total Fixed Charges was primarily driven by higher BXP's Share of maintenance capital expenditures (**$30.21 million** vs **$18.31 million** QoQ) and hotel improvements, equipment upgrades and replacements (**$0.86 million** vs **$0.16 million** QoQ)[92](index=92&type=chunk) [Joint Ventures](index=38&type=section&id=JOINT%20VENTURES) [Consolidated Joint Ventures](index=38&type=section&id=CONSOLIDATED%20JOINT%20VENTURES) As of June 30, 2025, BXP's consolidated joint ventures reported total assets of $7.68 billion and total liabilities of $3.72 billion, generating $205.80 million in rental revenue for Q2 2025 Consolidated Joint Ventures - Balance Sheet Information (in thousands, as of June 30, 2025) | Metric | 767 Fifth Avenue | Norges Joint Ventures | Total Consolidated Joint Ventures | | :--- | :--- | :--- | :--- | | Total assets | $3,594,624 | $4,083,636 | $7,678,260 | | Total liabilities | $2,381,804 | $1,338,324 | $3,720,128 | | BXP, Inc. Equity | $729,206 | $1,224,813 | $1,954,019 | | Noncontrolling interests | $483,614 | $1,520,499 | $2,004,113 | | Partners' share of consolidated debt | $917,322 | $446,042 | $1,363,364 | Consolidated Joint Ventures - Results of Operations (in thousands, Q2 2025) | Metric | 767 Fifth Avenue | Norges Joint Ventures | Total Consolidated Joint Ventures | | :--- | :--- | :--- | :--- | | Total rental revenue | $86,781 | $119,019 | $205,800 | | Net Operating Income (NOI) | $47,079 | $76,506 | $123,585 | | Net income | $8,267 | $42,791 | $51,058 | | BXP's share of FFO | $16,934 | $40,088 | $57,022 | [Unconsolidated Joint Ventures](index=40&type=section&id=UNCONSOLIDATED%20JOINT%20VENTURES) BXP's unconsolidated joint ventures had a total net equity of $1.16 billion as of June 30, 2025, generating $122.35 million in rental revenue for Q2 2025, with New York JVs reporting a net loss Unconsolidated Joint Ventures - Balance Sheet Information (in thousands, as of June 30, 2025) | Metric | Net Equity | Mortgage/Construction Loans Payable, Net | | :--- | :--- | :--- | | Boston JVs | $113,352 | $335,356 | | Los Angeles JVs | $97,290 | $274,812 | | New York JVs | $265,349 | $428,013 | | San Francisco JVs | $448,881 | $0 | | Seattle JVs | $43 | $84,041 | | Washington, DC JVs | $145,964 | $213,714 | | **Total Investments in Unconsolidated Joint Ventures** | **$1,161,036** | **$1,386,046** | Unconsolidated Joint Ventures - Results of Operations (in thousands, Q2 2025) | Metric | Total Unconsolidated Joint Ventures | | :--- | :--- | | Total rental revenue | $122,351 | | Net operating income | $67,492 | | Net income (loss) | $(23,919) | | BXP's share of FFO | $13,350 | - New York unconsolidated joint ventures reported a net loss of **$(24.16) million** and BXP's share of FFO of **$(3.94) million** for Q2 2025, primarily due to unrealized loss on derivative instruments[103](index=103&type=chunk)[105](index=105&type=chunk) - The 3 Hudson Boulevard loan, where BXP provided **$80 million** in mortgage financing, was in maturity default as of June 30, 2025, with an outstanding balance of approximately **$126.8 million**[105](index=105&type=chunk) [Lease Expiration Roll-Out](index=43&type=section&id=LEASE%20EXPIRATION%20ROLL-OUT) [Total In-Service Properties](index=43&type=section&id=Total%20In-Service%20Properties) This section details BXP's Share of annualized rental obligations and rentable square footage expiring annually for total in-service office and retail properties BXP's Share of Office Lease Expirations (Total In-Service Properties) | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 724,662 | $66.65 | $66.86 | | 2029 | 3,020,129 | $74.89 | $79.74 | | 2034 | 2,823,725 | $90.57 | $103.29 | | Thereafter | 10,680,344 | $81.44 | $99.45 | BXP's Share of Retail Lease Expirations (Total In-Service Properties) | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 34,353 | $92.07 | $92.07 | | 2033 | 429,193 | $71.49 | $80.90 | | 2034 | 264,966 | $131.33 | $152.66 | | Thereafter | 416,273 | $112.02 | $106.80 | BXP's Share of Total Property Types Lease Expirations (Total In-Service Properties) | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 759,015 | $67.80 | $68.01 | | 2029 | 3,186,305 | $76.56 | $81.43 | | 2034 | 3,088,691 | $94.06 | $107.53 | | Thereafter | 11,096,617 | $82.58 | $99.72 | [Boston](index=44&type=section&id=Boston) For Boston properties, office lease expirations are significant in 2028 and "Thereafter," with retail lease expirations being smaller but with higher rental obligations per square foot BXP's Share of Office Lease Expirations - Boston | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 209,970 | $57.53 | $57.53 | | 2028 | 941,691 | $97.27 | $102.86 | | Thereafter | 3,750,066 | $85.31 | $107.06 | BXP's Share of Retail Lease Expirations - Boston | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 30,174 | $88.92 | $88.92 | | 2033 | 254,385 | $82.89 | $94.71 | | Thereafter | 173,578 | $79.14 | $87.89 | [Los Angeles](index=46&type=section&id=Los%20Angeles) Los Angeles office lease expirations are most significant in 2029 and "Thereafter," with retail lease expirations being minimal BXP's Share of Office Lease Expirations - Los Angeles | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 766 | $66.96 | $66.96 | | 2029 | 240,815 | $71.75 | $80.01 | | Thereafter | 494,641 | $75.85 | $92.91 | BXP's Share of Retail Lease Expirations - Los Angeles | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2029 | 38,118 | $60.69 | $65.70 | | 2030 | 11,364 | $117.37 | $127.22 | [New York](index=48&type=section&id=New%20York) New York office lease expirations are substantial in 2029, 2031, and "Thereafter," with retail lease expirations being smaller but showing high rental obligations per square foot in some years BXP's Share of Office Lease Expirations - New York | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 96,869 | $64.00 | $64.00 | | 2029 | 724,762 | $83.27 | $85.48 | | 2031 | 900,791 | $87.51 | $93.25 | | Thereafter | 2,960,019 | $95.42 | $110.01 | BXP's Share of Retail Lease Expirations - New York | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 4,179 | $114.86 | $114.86 | | 2026 | 12,423 | $759.34 | $762.01 | | 2034 | 85,037 | $248.66 | $299.35 | [San Francisco](index=50&type=section&id=San%20Francisco) San Francisco office lease expirations are notable in 2026, 2027, 2029, 2031, and "Thereafter," with retail lease expirations being smaller BXP's Share of Office Lease Expirations - San Francisco | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 254,737 | $80.24 | $80.53 | | 2026 | 546,831 | $95.84 | $98.66 | | 2031 | 931,032 | $109.55 | $119.63 | | Thereafter | 401,096 | $97.21 | $127.83 | BXP's Share of Retail Lease Expirations - San Francisco | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2026 | 16,601 | $56.36 | $57.20 | | 2034 | — | — | — | [Seattle](index=52&type=section&id=Seattle) Seattle office lease expirations are most significant in 2028, with retail lease expirations being minimal BXP's Share of Office Lease Expirations - Seattle | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 87,411 | $46.84 | $46.84 | | 2028 | 302,445 | $56.22 | $59.06 | | Thereafter | 23,614 | $69.39 | $84.99 | BXP's Share of Retail Lease Expirations - Seattle | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2028 | 945 | $54.42 | $59.12 | | 2029 | 377 | $19.36 | $19.36 | [Washington, DC](index=54&type=section&id=Washington,%20DC) Washington, DC office lease expirations are substantial in 2033 and "Thereafter," with retail lease expirations also significant in those periods BXP's Share of Office Lease Expirations - Washington, DC | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 74,909 | $72.55 | $73.61 | | 2033 | 1,162,848 | $60.82 | $72.78 | | Thereafter | 3,050,908 | $62.03 | $77.29 | BXP's Share of Retail Lease Expirations - Washington, DC | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2026 | 29,287 | $51.93 | $52.07 | | 2033 | 146,146 | $29.21 | $32.18 | | Thereafter | 91,016 | $61.55 | $73.87 | [CBD](index=56&type=section&id=CBD) This section provides a breakdown of BXP's Share of lease expirations for CBD properties across its gateway cities, highlighting significant expirations in Boston, New York, and San Francisco BXP's Share of Lease Expirations - Boston CBD | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2028 | 705,702 | $116.13 | $122.59 | | 2030 | 1,160,116 | $74.54 | $79.12 | | Thereafter | 3,631,807 | $87.47 | $109.35 | BXP's Share of Lease Expirations - New York CBD | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2029 | 571,684 | $98.88 | $101.47 | | 2031 | 730,618 | $104.27 | $111.79 | | Thereafter | 2,784,252 | $106.42 | $119.65 | BXP's Share of Lease Expirations - San Francisco CBD | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2026 | 350,881 | $100.04 | $103.93 | | 2027 | 428,428 | $105.47 | $109.20 | | 2031 | 929,661 | $109.84 | $119.77 | [Suburban](index=58&type=section&id=Suburban) This section details BXP's Share of lease expirations for Suburban properties across Boston, New York, and San Francisco, highlighting significant expirations in various years BXP's Share of Lease Expirations - Boston Suburban | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2029 | 493,686 | $51.85 | $57.01 | | 2031 | 567,466 | $66.59 | $71.96 | | 2034 | 326,384 | $73.03 | $85.07 | BXP's Share of Lease Expirations - New York Suburban | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2026 | 148,646 | $40.79 | $41.11 | | 2027 | 363,535 | $40.39 | $41.02 | | 2031 | 184,641 | $41.78 | $43.21 | BXP's Share of Lease Expirations - San Francisco Suburban | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2026 | 212,551 | $85.83 | $86.73 | | 2034 | 112,990 | $116.11 | $143.69 | [Research Coverage, Definitions and Reconciliations](index=61&type=section&id=RESEARCH%20COVERAGE,%20DEFINITIONS%20AND%20RECONCILIATIONS) [Research Coverage](index=61&type=section&id=Research%20Coverage) This section lists the equity and debt research analysts and rating agencies that cover BXP, Inc., explicitly stating that their opinions do not represent those of the Company - BXP is covered by numerous equity research analysts from major financial institutions including Bank of America Merrill Lynch, Barclays, BMO Capital, Citi, Deutsche Bank, Goldman Sachs, J.P. Morgan Securities, Morgan Stanley, Piper Sandler Companies, Scotiabank GBM, Truist Securities, UBS US Equity Research, Wells Fargo Securities, and Wolfe Research[159](index=159&type=chunk) - Debt research coverage is provided by Barclays, J.P. Morgan Securities, US Bank, and Wells Fargo, while rating agencies include Moody's Investors Service and Standard & Poor's[159](index=159&type=chunk) - The Company explicitly disclaims endorsement of or concurrence with any opinions, estimates, or forecasts made by the listed analysts[158](index=158&type=chunk) [Definitions](index=62&type=section&id=Definitions) This section provides detailed definitions for various non-GAAP financial measures and other key terms used throughout the supplemental report, explaining their rationale and supplementary nature to GAAP - "BXP's Share" adjusts consolidated amounts for joint venture interests to reflect the company's true economic interest, providing useful supplemental information to investors[161](index=161&type=chunk) - EBITDAre (Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate) is a Nareit-defined non-GAAP measure used internally to assess operational performance trends on an unleveraged basis[169](index=169&type=chunk) - FFO (Funds from Operations) is a Nareit-defined non-GAAP measure that adjusts net income for real estate-related depreciation, amortization, and gains/losses from property sales, aiming to improve comparability of REIT operating results[175](index=175&type=chunk) - FAD (Funds Available for Distribution) is a non-GAAP measure that further adjusts FFO for non-cash items and capital expenditures, providing supplemental information on the company's ability to generate cash for distributions[173](index=173&type=chunk) - NOI (Net Operating Income) is a non-GAAP measure that reflects property-level operating performance by excluding corporate-level expenses and non-cash items, useful for comparing operational trends[181](index=181&type=chunk)[182](index=182&type=chunk) - "Same Properties" are defined as properties owned and in-service throughout the entire comparison period, excluding newly acquired, developed, or disposed properties, to ensure meaningful period-over-period NOI comparisons[185](index=185&type=chunk) [Reconciliations](index=66&type=section&id=Reconciliations) This section provides quantitative reconciliations for various "BXP's Share" metrics and non-GAAP financial measures, detailing adjustments for consolidated and unconsolidated joint ventures - Reconciliations are provided for "BXP's Share" of key financial metrics, adjusting consolidated GAAP figures for partners' shares in consolidated JVs and BXP's share in unconsolidated JVs[186](index=186&type=chunk) BXP's Share of Select Items (QoQ Change, in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | BXP's Share of revenue | $835,667 | $836,192 | -0.06% | | BXP's Share of straight-line rent | $20,535 | $26,687 | -23.07% | | BXP's Share of depreciation and amortization | $219,548 | $216,970 | +1.20% | | BXP's Share of maintenance capital expenditures | $30,211 | $18,307 | +65.03% | | BXP's Share of interest expense | $169,763 | $170,294 | -0.31% | Reconciliation of BXP's Share of Same Property NOI (excluding termination income) (in thousands) | Metric | 31-Mar-25 | 31-Mar-24 | Change (YoY) | | :--- | :--- | :--- | :--- | | BXP's Share of Same Property NOI (excluding termination income) | $481,080 | $484,090 | -0.6% | | BXP's Share of Same Property NOI - cash (excluding termination income) | $460,896 | $452,573 | +1.8% | [Consolidated Income Statement - Prior Year](index=74&type=section&id=Consolidated%20Income%20Statement%20-%20Prior%20Year) This section provides the consolidated income statement for the three months ended June 30, 2024, and March 31, 2024, allowing for prior period performance comparisons Consolidated Income Statement (in thousands, except per share amounts) | Metric | 30-Jun-24 | 31-Mar-24 | | :--- | :--- | :--- | | Total revenue | $850,482 | $839,439 | | Total expenses | $599,253 | $593,712 | | Net income | $106,949 | $106,604 | | Net income attributable to BXP, Inc. | $79,615 | $79,883 | | Net income attributable to BXP, Inc. per share - diluted | $0.51 | $0.51 |