Financial Data and Key Metrics Changes - Funds from Operations (FFO) per share for Q3 2025 was $1.74, which is $0.04 above the forecast and $0.02 above market consensus [4][37] - The midpoint of the earnings guidance for the full year 2025 was raised by $0.03, now projected at $6.89 to $6.92 per share [4][39] - Occupancy in the same property pool increased by 20 basis points from the previous quarter, reaching 86.6% [20][37] Business Line Data and Key Metrics Changes - Over 1.5 million square feet of leasing was completed in Q3 2025, a 39% increase compared to Q3 2024 and 130% of the last five-year average for the same quarter [5][4] - Year-to-date leasing activity reached 3.8 million square feet, which is 14% greater than the first three quarters of 2024 [5] - The overall mark-to-market on leases signed this quarter increased by almost 7%, with notable increases in Boston (12%) and New York (7%) [23] Market Data and Key Metrics Changes - Office transaction volume in private markets improved, with significant office sales reaching $12.9 billion in Q3 2025, up 6% from Q2 2025 and 55% from Q3 2024 [8] - Office utilization data showed a 13% increase over the last year, with September 2025 utilization at 26.3% below 2019 levels [6] - Direct vacancy for premier workplaces in key markets is 11.7%, significantly lower than the broader market [10] Company Strategy and Development Direction - The company aims to sell 27 non-strategic assets for approximately $1.9 billion by year-end 2027, with 23 transactions closed or underway totaling roughly $1.25 billion in net proceeds [7][8] - Focus on increasing portfolio concentration in premier workplace assets located in core gateway markets, which are outperforming the broader office market [10][11] - Plans to grow FFO through selective new developments, particularly in multifamily projects, with a financial partner [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are growing and utilizing their spaces more intensively, leading to positive leasing market conditions [16] - The company expects to achieve a 200 basis point increase in occupancy by the end of 2026, supported by a strong leasing pipeline [49][66] - The debt and equity markets are becoming more constructive on the office sector, improving capital availability and pricing [16][36] Other Important Information - The company recorded $212 million in impairments related to assets part of the strategic sales program [38] - The company is actively pursuing high-quality development opportunities with expected cash yields over 8% [12] Q&A Session Summary Question: Thoughts on reallocating capital into premier locations and smaller markets like Seattle and LA - Management acknowledged that LA and Seattle are weaker markets with no current development opportunities, but would consider acquisitions if they arise [44][45] Question: Confidence level regarding occupancy increases in 2026 - Management expressed confidence in renewing leases and maintaining leasing velocity, projecting a 200 basis point increase in occupancy by the end of 2026 [47][49] Question: Recovery in San Francisco and Salesforce's commitment - Management noted that AI demand is focused on low-rise buildings south of Mission Street, and Salesforce's commitment is seen as positive for job growth and office demand [50][55] Question: Percentage of pre-pandemic leases still to be addressed - Management indicated that most growth is coming from existing clients expanding their space, with limited rollover risk [58][63]

Core Insights - Boston Properties (BXP) reported revenue of $809.82 million for the quarter ended September 2025, reflecting a 1.3% increase year-over-year and surpassing the Zacks Consensus Estimate of $807.91 million by 0.24% [1] - The company achieved an EPS of $1.74, significantly higher than the $0.53 reported in the same quarter last year, and exceeded the consensus EPS estimate of $1.72 by 1.16% [1] Financial Performance Metrics - Occupancy rate for in-service properties was reported at 86.6%, slightly below the average estimate of 86.7% from three analysts [4] - Revenue from parking and other services was $35.39 million, exceeding the average estimate of $34.79 million and showing a year-over-year increase of 3.3% [4] - Hotel revenue was reported at $13.16 million, which fell short of the average estimate of $15.91 million, representing a year-over-year decline of 12.7% [4] - Revenue from development and management services reached $9.32 million, surpassing the average estimate of $8.47 million, with a year-over-year increase of 37.6% [4] - Lease revenue matched the reported figure of $809.82 million against the average estimate of $807.9 million, indicating a 1.3% year-over-year change [4] - The diluted net earnings per share were reported at -$0.77, significantly lower than the average estimate of $0.49 from five analysts [4] Stock Performance - Over the past month, shares of Boston Properties have returned -1.1%, contrasting with the Zacks S&P 500 composite's increase of 3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Boston Properties (BXP) reported quarterly funds from operations (FFO) of $1.74 per share, exceeding the Zacks Consensus Estimate of $1.72 per share, but down from $1.81 per share a year ago, representing an FFO surprise of +1.16% [1] - The company posted revenues of $809.82 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.24%, compared to year-ago revenues of $799.47 million [2] - Over the last four quarters, Boston Properties has surpassed consensus FFO estimates two times and topped consensus revenue estimates four times [2] 分组2 - The stock's immediate price movement will depend on management's commentary on the earnings call and future FFO expectations [3][4] - Boston Properties shares have increased about 0.2% since the beginning of the year, while the S&P 500 has gained 16.9% [3] - The current consensus FFO estimate for the coming quarter is $1.79 on revenues of $815.38 million, and for the current fiscal year, it is $6.87 on revenues of $3.24 billion [7] 分组3 - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5][6]

Portfolio Overview - As of September 30, 2025, BXP's portfolio totals 54.6 million square feet across 187 properties, including 8 properties under construction/redevelopment[3] - BXP's properties include 163 office properties, 14 retail properties, nine residential properties, and one hotel, showcasing a diverse portfolio[3] - The total properties under construction amount to 3,522,100 square feet, with a total investment of $1,008.19 million and a future equity requirement of $76.147 million[43] - The total square footage of in-service properties is 42,087,505 square feet with an overall occupancy rate of 89.3% and a leased rate of 92.0%[65] - The total square footage for Washington, DC properties is 2,730,165 with an occupancy rate of 88.5% and a leased rate of 89.8%[62] Financial Performance - BXP's market capitalization is approximately $29.7 billion, with a closing share price of $74.34[14] - The company declared a quarterly dividend of $0.70 per share, resulting in an annualized dividend of $2.80 per share and a dividend yield of 3.8%[14] - Revenue for the three months ended September 30, 2025, was $871,510,000, slightly up from $868,457,000 in the previous quarter[20] - Net income attributable to BXP, Inc. for the three months ended September 30, 2025, was a loss of $121,712,000, compared to a profit of $88,977,000 for the previous quarter[20] - Total revenue for the three months ended September 30, 2025, was $871,510,000, a slight increase from $868,457,000 in the previous quarter, representing a growth of 0.12%[24] Earnings and Funds from Operations - Projected diluted EPS for Full Year 2025 is estimated to be between $0.99 and $1.02[18] - Projected FFO per share (diluted) for Full Year 2025 is expected to be between $6.89 and $6.92[18] - FFO attributable to BXP, Inc. for the same period was $276,674,000, with diluted FFO per share at $1.74[20] - Basic Funds From Operations (FFO) for the quarter was $307,347,000, up from $301,769,000 in the previous quarter, reflecting an increase of 1.9%[28] - The company’s diluted FFO per share was $1.74, up from $1.71 in the previous quarter, indicating a growth of 1.76%[27] Debt and Liabilities - Consolidated debt as of September 30, 2025, was $16,604,696,000, with a debt-to-market capitalization ratio of 55.82%[20] - Total liabilities rose to $18,482,700,000 as of September 30, 2025, from $17,766,779,000 in the previous quarter[23] - The total outstanding debt to total assets ratio was 49.3%, well below the 60% limit, indicating strong asset coverage[92] - The interest coverage ratio, calculated as annualized consolidated EBITDA to annualized interest expense, was 2.94, exceeding the required minimum of 1.50x[92] - The weighted average interest rate for consolidated debt was 4.07%, with unsecured debt comprising 74.23% of total debt at a stated rate of 3.99%[87] Sustainability and Innovation - The company has maintained a thirteenth consecutive GRESB "Green Star" recognition and the highest GRESB 5-star Rating, highlighting its commitment to sustainability[3] - BXP emphasizes sustainability innovation to minimize emissions from its development and in-service portfolio[16] - The company aims to recycle capital by disposing of assets that no longer meet its investment profile, allowing for reinvestment opportunities[16] - BXP's strategy includes maintaining a strong balance sheet to ensure consistent access to capital for new investments[16] Market and Occupancy Trends - Average in-service portfolio occupancy is projected to be between 86.50% and 87.50% for Full Year 2025[19] - BXP's share of Same Property net operating income is expected to change by 0.50% to 1.00% for Full Year 2025[19] - The company reported a weighted average remaining lease term of 9.2 years for its top 20 clients, with Salesforce contributing 3.34% to annualized rental obligations[68] - The average rental rate per occupied square foot in Washington, DC increased by 9.49% to $3.23 from $2.95 year-over-year[59] - The average occupancy rate for hotel rooms in Boston was 82.80%, a slight increase of 0.12% year-over-year[60] Capital Expenditures and Investments - Capital expenditures for the three months ended September 30, 2025, totaled $42,281,000, down from $52,920,000 in the previous quarter[37] - The company acquired properties totaling 1,490,000 square feet, with a total investment of $975,650,000, including $63,532,000 in initial investments[40] - The anticipated future investment for the property at 343 Madison Avenue is $843,418,000, with an initial investment of $43,532,000[40] - The company has committed to fund up to $65.0 million in preferred equity and has entered into a $225.0 million construction loan, with its share being approximately $43.8 million[41] - The company reported a non-cash impairment charge of approximately $145.1 million for the quarter[26] Future Projections and Obligations - The company expects to incur remaining lease payments aggregating approximately $29.3 million by the end of 2027, with no payments thereafter[33] - The annualized rental obligations under expiring leases for 2025 were $18,608,901, with a rental rate of $76.46 per square foot[113] - For 2026, annualized rental obligations are projected to be $105,655,990, with a rental rate of $75.28 per square foot, representing a 3.50% increase in total square footage[113] - The total annualized rental obligations for the year 2031 are estimated at $42,733,582, with a PSF of $68.52[118] - The company anticipates a significant increase in rental obligations to $43,386,599 in 2032, with a PSF of $68.33, from 657,486 square feet[150]

Core Insights - BXP signed over 1.5 million square feet of leases in Q3 2025, marking a 38% increase compared to Q3 2024 and the strongest third quarter since 2019 [1][2] - The weighted-average lease term for these leases is 7.9 years, contributing to a total leasing activity of approximately 3.8 million square feet through Q3 2025 [1] Company Overview - BXP, Inc. is the largest publicly traded developer, owner, and manager of premier workplaces in the U.S., focusing on six key gateway markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC [2] - As of September 30, 2025, BXP's portfolio includes 54.6 million square feet across 187 properties, with eight properties currently under construction or redevelopment [2] Leasing Activity Highlights - In Boston's Urban Edge market, BXP executed over 200,000 square feet of leasing, all from existing vacancies [4] - In New York, BXP completed over 475,000 square feet of leasing in Midtown Manhattan, primarily extensions for existing financial services clients, including a significant lease at 399 Park Avenue [4] - In Reston, VA, a 50,000 square foot lease was signed with a technology client, achieving 98% occupancy for the office portion of Reston Town Center [4]

Core Insights - BXP, Inc. is expected to report third-quarter 2025 results on October 28, with anticipated year-over-year revenue growth but a decline in funds from operations (FFO) per share [1][10] Company Performance - In the last reported quarter, BXP's FFO per share was $1.71, exceeding the Zacks Consensus Estimate of $1.67, driven by strong leasing activity despite higher interest expenses impacting year-over-year growth [2][11] - Over the past four quarters, BXP's FFO per share has surpassed estimates once, missed once, and met expectations in the remaining periods, with an average beat of 0.45% [3] Industry Context - The U.S. office market is experiencing solid demand for high-quality spaces, with companies expanding their footprints after previous cutbacks, although net absorption for the broader market was negative in the third quarter [3][4] - Demand for Class A assets remains high, with 14 markets showing positive absorption despite overall negative trends [4] - Vacancy rates for sublease spaces have decreased by 14.5% from the first quarter of 2024, indicating a tightening market [5] Supply Dynamics - Supply pressures are easing due to reduced new construction activity, with the under-construction pipeline at 22.5 million square feet, the lowest in the 21st century, and new deliveries down 30% from the average since 2020 [6] BXP's Strategic Position - BXP is well-positioned to benefit from the increasing demand for quality office spaces, particularly as it converts office buildings to laboratory/life science spaces, which is expected to enhance leasing activity [7][8] - The Zacks Consensus Estimate for BXP's third-quarter revenues is $806.6 million, reflecting a slight increase from the previous year [9] Financial Outlook - High debt levels and rising interest expenses are anticipated to pressure BXP's quarterly FFO, with a projected 1.3% year-over-year increase in interest expenses [10][11] - The Zacks Consensus Estimate for third-quarter FFO per share is $1.72, indicating a 5% decrease from the previous year [11][12]

Core Insights - BXP, Inc. has a market capitalization of $11.3 billion and is a leading publicly traded developer, owner, and manager of premier workplaces in the U.S. [1] - The company is structured as a real estate investment trust (REIT) focusing on Class A office properties in high-demand urban markets [1] Financial Performance - BXP is expected to report fiscal Q3 2025 earnings results on October 28, with projected FFO of $1.72 per share, a decrease of 5% from $1.81 per share in the same quarter last year [2] - For fiscal 2025, analysts forecast an FFO of $6.87 per share, down 3.2% from $7.10 per share in fiscal 2024, but expect a year-over-year growth of 2.8% to $7.06 in fiscal 2026 [3] Stock Performance - BXP stock has declined by 21.2% over the past 52 weeks, underperforming the S&P 500 Index's gain of 14.8% and the Real Estate Select Sector SPDR Fund's return of 5.1% [4] Analyst Ratings - Jefferies reaffirmed a "Buy" rating on BXP with a price target of $84, highlighting the company's strong portfolio and robust leasing activity [5] - The consensus view among analysts is cautiously optimistic, with a "Moderate Buy" rating; 9 analysts suggest a "Strong Buy" and 14 recommend a "Hold" [6] - The average analyst price target of $78.89 indicates a potential upside of 11.6% from current price levels [6]

Group 1 - The core thesis is that Boston Properties (NYSE: BXP) is undervalued by the market despite evidence of improving fundamentals [1] - There is an acceleration in leasing momentum and a trend towards higher quality properties, indicating a positive shift in the company's performance [1] - The investment strategy focuses on identifying undervalued companies with long-term growth potential, emphasizing the importance of buying quality at a discount [1]

Group 1 - BXP, Inc. is highlighted as a relatively cheap stock within the S&P 500, being the only real estate company on the list [1] - The company, formerly known as Boston Properties, has a portfolio primarily consisting of high-quality office properties located in six major cities on the East and West Coast [1] - BXP recently trimmed its dividend to allocate cash for growth projects, which contributed to a rebound in its stock price, maintaining a yield of 3.7% [1] Group 2 - BXP is a fully integrated real estate investment trust (REIT) that develops, owns, and manages premier workplaces, focusing on creating spaces that foster progress for clients and communities [2]

Core Viewpoint - BXP, Inc. announced the intention of its operating partnership, Boston Properties Limited Partnership, to offer $600 million of exchangeable senior notes due 2030 in a private offering to qualified institutional buyers [1] Group 1 - BXP, Inc. is the largest publicly traded developer, owner, and manager of premier workplaces in the United States [1] - The offering of the notes is subject to market and other conditions [1] - The notes will be offered in a private placement to persons reasonably believed to be qualified institutional buyers [1]