Core Viewpoint - Chilton Capital Management's REIT Team focuses on investments in publicly traded real estate investment trusts (REITs) and related entities primarily in North America, emphasizing the advantages of liquidity, transparency, and total return characteristics of public REITs [1] Group 1: Team and Strategy - The REIT Team is led by co-portfolio managers Bruce Garrison and Matt Werner, with Garrison having over 40 years of experience in public REIT analysis [1] - The investment strategy combines real estate industry experience with traditional security analysis methods, including research and analytical depth [1] - The REIT Team manages Separately Managed Accounts (SMAs) for high net worth individuals and institutions, and serves as a sub-advisor for the West Loop Realty Fund [1] Group 2: Investment Focus - The REIT Team invests in a variety of property types, including apartments, regional malls, shopping centers, lodging, office, industrial, self-storage, data centers/cell towers, and healthcare-related facilities [1] - The focus on public securities allows for diversification across geography, sector, strategy, property, and tenant while maintaining portfolio liquidity [1] Group 3: Company Background - Chilton Capital Management, established in 1996, provides investment advisory services for registered investment companies, private clients, family offices, endowments, foundations, retirement plans, and trusts [1] - The firm is independently owned and operates within the Liberty Street family of funds, with the West Loop Realty Fund being part of the Investment Managers Series Trust [1]

Boston Properties Inc.’s (BXP) first-quarter 2025 funds from operations (FFO) per share of $1.64 missed the Zacks Consensus Estimate of $1.65. The reported figure fell 5.2% year over year.BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, lower occupancy during the quarter marred its year-over-year FFO per share growth. BXP also revised its guidance for 2025 FFO per share.Quarterly lease revenues were $811.1 million, up 2.9% year over year. The Zacks Conse ...

Financial Data and Key Metrics Changes - The company reported FFO per share for Q1 2025 at $1.64, which was in line with forecasts [41] - The first quarter leasing volume was over 1,100,000 square feet, 25% higher than Q1 2024, and 33% higher than the previous four quarters [8][19] - The company completed over $4.2 billion in financing activity, indicating strong access to capital [9] Business Line Data and Key Metrics Changes - The leasing activity included 467,000 square feet of leases on vacant space and 561,000 square feet of known expirations for 2025 [20] - The development pipeline saw a significant increase in pre-leasing, with 62% pre-leased at 1050 Winter Street [27] - The company is focusing on high-quality assets, with asking rents for premier workplaces over 50% higher than the broader market [12] Market Data and Key Metrics Changes - The office sales volume in Q1 was $7.6 billion, down approximately 14% from the previous year [13] - Direct vacancy for premier workplaces is just over 13%, compared to 19% for the broader market [12] - The overall mark to market on cash basis was up about 5%, with increases in Boston and flat in New York [28] Company Strategy and Development Direction - The company is focusing on high-quality office spaces and has commenced development on two significant projects, including a multifamily development in Jersey City [14][15] - The strategy includes evaluating additional asset monetization opportunities, with potential land sales generating approximately $250 million [17] - The company aims to maintain momentum in leasing and new investment activity despite a challenging market environment [18] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential impacts from tariffs and federal funding cuts but noted that client demand has remained stable [9][11] - The company anticipates that leasing demand may slow if a recession occurs, but expects interest rates to decrease [11] - Management remains optimistic about future occupancy growth, projecting only 3.9% portfolio lease rollover in 2026 and 5.1% in 2027 [19] Other Important Information - The company highlighted its leadership in sustainable business practices through its 2024 sustainability and impact report [9] - The company is actively involved in the debt capital markets, with significant refinancing and financing activities completed in Q1 [40][41] Q&A Session Summary Question: Regarding 343 Madison, how is the pre-leasing strategy being approached? - Management aims to pre-lease the building, targeting a yield of 8% and expects to make a decision on moving forward by July [49][50] Question: How confident is the company in achieving the 4 million square feet leasing plan for 2025? - Management is confident, having already executed about 1 million square feet of leasing and with a robust pipeline of additional activity [53][56] Question: What are the trends in the life science market? - Management noted a lack of new requirements for lab space but observed demand for office space from life science organizations [69] Question: What is the outlook for West Coast leasing activity? - Management indicated that while larger users have stabilized, there is increasing activity from smaller AI and tech companies seeking space [78][80] Question: How is the company addressing leverage and funding? - Management acknowledged a slight increase in leverage but expects it to moderate as developments come online and through potential asset monetization [82][85]

Financial Data and Key Metrics Changes - The company reported FFO per share for Q1 2025 at $1.64, in line with forecasts [39] - The first quarter leasing volume was over 1,100,000 square feet, which is 25% higher than Q1 2024 and 33% higher than the previous four quarters [6][7] - The company narrowed its 2025 FFO guidance range to $6.80 to $6.92 per share, reflecting increased confidence in leasing activity [43][44] Business Line Data and Key Metrics Changes - The leasing activity included 467,000 square feet on vacant space and 561,000 square feet related to known expirations in 2025, indicating a focus on near-term exposure [20] - The development pipeline saw a significant increase in pre-leasing, with a jump from 50% to 62% pre-leased on the development pipeline [24] - The company signed a 160,000 square foot lease at 1050 Winter Street, contributing to the repositioning of the building [42] Market Data and Key Metrics Changes - The office sales volume in Q1 was $7.6 billion, down approximately 14% from the previous year, indicating market volatility [11] - Direct vacancy for premier workplaces is just over 13%, compared to 19% for the broader market, highlighting the strength of high-quality assets [11] - The overall mark to market on cash basis was up about 5%, with increases in Boston and flat conditions in New York [27] Company Strategy and Development Direction - The company is focusing on high-quality assets, with a strategy to pivot from life science development to office use in response to market demand [17][22] - New developments include a 70-unit multifamily project in Jersey City and a 930,000 square foot office project at 343 Madison, with significant interest from potential tenants [13][15] - The company is evaluating additional asset monetization opportunities, including the sale of land sites expected to generate approximately $250 million [15] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential impacts from tariffs and federal funding cuts, but noted that client demand has remained stable [7][10] - The company anticipates that leasing demand may slow if a recession occurs, but expects interest rates to decrease, which could benefit occupancy [10] - Management remains optimistic about future occupancy growth, with only 3.9% portfolio lease rollover in 2026 and 5.1% in 2027 [18] Other Important Information - The company completed over $4.2 billion in financing activity, demonstrating strong access to capital [7] - The company is actively engaged in the debt capital markets, with significant refinancing and new loans completed in Q1 [38][39] - The company is experiencing increased foot traffic and retail activity in certain areas, indicating a positive trend in local markets [10] Q&A Session Summary Question: Regarding 343 Madison, how is the company sizing up the start and pre-lease? - The company aims to pre-lease the building, targeting a yield of 8% and will make a decision on moving forward by July [46][50] Question: How confident is the company in the 4 million square feet leasing plan for 2025? - The company is more than halfway to its leasing goal and is confident in occupancy growth as many leases will commence in 2025 and 2026 [54][57] Question: What are the trends in the life science market? - The company has seen little new demand for lab space but is experiencing interest from life science organizations seeking office space [70][71] Question: What is the outlook for West Coast leasing activity? - The company notes strong activity from law firms and financial services, with smaller AI companies also looking for space [78][80] Question: How is the company addressing leverage and funding? - The company acknowledges a slight increase in leverage but expects it to moderate as developments come online and income increases [82][85]

Core Insights - Boston Properties (BXP) reported revenue of $811.1 million for Q1 2025, reflecting a 2.9% increase year-over-year and a surprise of +2.56% over the Zacks Consensus Estimate of $790.85 million [1] - The company's EPS for the quarter was $1.64, compared to $0.51 in the same quarter last year, with a slight EPS surprise of -0.61% against the consensus estimate of $1.65 [1] Revenue Breakdown - Occupancy rate of in-service properties was 89.4%, exceeding the average analyst estimate of 87.4% [4] - Revenue from parking and other sources was $30.15 million, below the average estimate of $34.56 million, representing a year-over-year decline of -6.4% [4] - Hotel revenue reached $9.60 million, surpassing the average estimate of $8.81 million, with a year-over-year increase of +17.2% [4] - Revenue from development and management services was $9.78 million, exceeding the average estimate of $8.13 million, marking a significant year-over-year growth of +58.8% [4] - Lease revenue was reported at $811.10 million, compared to the average estimate of $790.82 million, indicating a year-over-year increase of +2.9% [4] Stock Performance - Over the past month, shares of Boston Properties have returned -1.4%, compared to a -0.8% change in the Zacks S&P 500 composite [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]

Boston Properties (BXP) came out with quarterly funds from operations (FFO) of $1.64 per share, missing the Zacks Consensus Estimate of $1.65 per share. This compares to FFO of $1.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -0.61%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.79 per share when it actually produced FFO of $1.79, delivering no surprise.Over the last four quarters, ...

Supplemental Operating and Financial Data for the Quarter Ended March 31, 2025 Exhibit 99.1 THE COMPANY BXP, Inc. (NYSE: BXP) (formerly known as Boston Properties, Inc.) ("BXP" or the "Company") is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than ...

BXP, Inc. (BXP) is slated to report first-quarter 2025 results on April 29, after market close. While the company’s quarterly results are likely to display a year-over-year rise in revenues, funds from operations (FFO) per share are expected to decline.In the last reported quarter, this office real-estate investment trust (REIT) met the Zacks Consensus Estimate in terms of FFO per share. The quarterly results reflected better-than-anticipated revenues on healthy leasing activity. However, higher interest ex ...

Group 1 - Boston Properties (NYSE: BXP) is one of the largest office REITs in the U.S., with properties located in major cities such as Boston, Los Angeles, New York, San Francisco, and Washington, DC [1] - The company offers a dividend yield of 5.7%, presenting a potential investment opportunity [1] Group 2 - The article emphasizes the importance of companies that demonstrate growth in revenue, earnings, and free cash flow as attractive investment candidates [1] - It highlights the preference for companies with excellent growth prospects and favorable valuations [1] - The focus is on steadily growing companies with high free cash flow margins, dividend stocks, and those with generous share repurchase programs [1]

[Part I - Business and Risk Factors](index=8&type=section&id=Part%20I) This section outlines BXP's business, strategies, sustainability, human capital, and key risk factors [Business Overview](index=8&type=section&id=Item%201.%20Business) BXP is a leading office REIT focused on high-quality workplaces in six major U.S. gateway markets, managing a portfolio of 185 properties totaling 53.3 million square feet as of December 31, 2024 - BXP is one of the largest publicly-traded office REITs in the United States, with a portfolio of 185 commercial properties aggregating approximately **53.3 million net rentable square feet** as of December 31, 2024[29](index=29&type=chunk)[30](index=30&type=chunk) - The company's properties are concentrated in six gateway markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC[30](index=30&type=chunk) - BXP operates through an UPREIT structure, where BXP, Inc. is the REIT and general partner, and Boston Properties Limited Partnership (BPLP) is the operating partnership that holds substantially all assets. As of December 31, 2024, BXP owned an approximate **89.7% interest** in BPLP[13](index=13&type=chunk)[14](index=14&type=chunk) [Transactions During 2024](index=9&type=section&id=Transactions%20During%202024) In 2024, BXP acquired full ownership of 901 New York Avenue, purchased 725 12th Street, advanced a 2.3 million sq. ft. development pipeline, and managed debt, while recognizing $341.3 million in impairment losses - Acquired its joint venture partner's **50% interest** in 901 New York Avenue, DC, and purchased 725 12th Street, DC, for redevelopment[37](index=37&type=chunk)[38](index=38&type=chunk) - Recognized an impairment loss of approximately **$13.6 million** on a portion of its Shady Grove property in Maryland, which is pending disposition[39](index=39&type=chunk) - Advanced a development pipeline of seven properties totaling **2.3 million sq. ft.**, with an estimated remaining investment of **$1.3 billion**. Several projects were fully or partially placed in-service during the year[41](index=41&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - BPLP repaid **$700.0 million** of senior notes, established a **$500.0 million** commercial paper program, and completed a public offering of **$850.0 million** in **5.750%** unsecured senior notes due 2035[51](index=51&type=chunk)[52](index=52&type=chunk)[55](index=55&type=chunk) - Recognized other-than-temporary impairment losses on its investments in three unconsolidated joint ventures: Colorado Center (**$168.4 million**), Gateway Commons (**$126.1 million**), and Safeco Plaza (**$46.8 million**)[68](index=68&type=chunk) - Sold a **45% interest** in the 290 Binney Street development project in Cambridge, MA, retaining a **55% controlling interest**[69](index=69&type=chunk) [Business and Growth Strategies](index=13&type=section&id=Business%20and%20Growth%20Strategies) BXP aims to maximize total return by developing, owning, and managing premier properties in core gateway markets, leveraging in-house expertise for external growth through selective development and acquisitions, and internal growth via high-quality property management and redevelopment - The company's core business strategy is to target a few carefully selected dynamic gateway markets (Boston, LA, NY, SF, Seattle, DC) and be a leading developer and owner in each[73](index=73&type=chunk) - External growth strategies include developing premier workplaces and mixed-use properties, acquiring underperforming assets for repositioning, and pursuing build-to-suit opportunities[74](index=74&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk)[80](index=80&type=chunk) - Internal growth is driven by high-quality property management to encourage renewals, efficient re-leasing of space, and strategic redevelopment of existing assets to increase cash flow and value[78](index=78&type=chunk)[83](index=83&type=chunk) [Sustainability](index=16&type=section&id=Sustainability) BXP is committed to sustainable growth, targeting carbon-neutral operations by 2025, and has received numerous accolades for its leadership, with energy and water intensity showing a general downward trend - BXP has committed to achieving carbon-neutral operations (Scope 1 and 2 GHG emissions) by **2025** for its occupied and actively managed buildings[85](index=85&type=chunk) - In 2024, BXP earned its ninth consecutive **5-star GRESB rating**, was named to the Dow Jones Sustainability Index for the fourth consecutive year, and was recognized as an ENERGY STAR Partner of the Year[88](index=88&type=chunk) Energy and Water Consumption Trends (2015-2023) | Year | Energy Intensity (kBtu/SF) | Total Energy Consumption (MWh) | Water Intensity (Gal/SF) | Total Water Consumption (Cubic Meters) | |:---|:---|:---|:---|:---| | 2015 | 80.1 | 961,194 | 30.1 | 3,700,410 | | 2016 | 77.8 | 951,339 | 29.1 | 3,624,110 | | 2017 | 75.9 | 941,484 | 28.2 | 3,547,810 | | 2018 | 74.1 | 931,629 | 27.3 | 3,471,510 | | 2019 | 72.3 | 921,774 | 26.4 | 3,395,210 | | 2020 | 61.2 | 778,507 | 18.9 | 2,423,721 | | 2021 | 60.0 | 762,280 | 18.5 | 2,369,061 | | 2022 | 63.5 | 806,155 | 20.7 | 2,659,681 | | 2023 | 65.2 | 827,918 | 21.8 | 2,795,641 | [Human Capital Management](index=18&type=section&id=Human%20Capital%20Management) As of year-end 2024, BXP employed 816 individuals, emphasizing a positive work environment, career development, and comprehensive benefits, resulting in an average tenure of 9.5 years and a 10.8% voluntary turnover rate - As of December 31, 2024, the company had **710 non-union** and **106 union employees**[89](index=89&type=chunk) - The average employee tenure is approximately **9.5 years**, with **34%** of employees having worked at BXP for ten or more years. The voluntary workforce turnover rate in 2024 was **10.8%**[95](index=95&type=chunk) - The company offers comprehensive benefits including health insurance, a **401(k)** with matching contributions, an employee stock purchase plan, tuition reimbursement, and paid parental leave[98](index=98&type=chunk)[107](index=107&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse material risks including economic downturns, real estate market volatility, financial leverage, cybersecurity threats, environmental liabilities, and maintaining REIT status - **Business and Operational Risks:** Performance is highly dependent on the economic conditions of its six key markets. A downturn could reduce demand and rental rates. The company's success also depends on key personnel whose continued service is not guaranteed[135](index=135&type=chunk)[138](index=138&type=chunk) - **Real Estate Risks:** The company is subject to risks including difficulties in renewing leases, sustained changes in client preferences toward hybrid/remote work, competition from other properties, and potential cost overruns in development projects[140](index=140&type=chunk)[142](index=142&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) - **Financial Risks:** The company faces risks from using debt, including refinancing risk and the impact of elevated interest rates on variable-rate debt. Covenants in debt agreements could adversely affect financial condition[200](index=200&type=chunk)[201](index=201&type=chunk)[204](index=204&type=chunk) - **Cybersecurity and Technology Risks:** The company faces risks from security breaches, cyber-attacks, and disruptions of its IT networks. The use of AI also presents new risks related to data privacy and security[175](index=175&type=chunk)[180](index=180&type=chunk) - **Environmental and Insurance Risks:** Potential liability for environmental contamination could result in substantial costs. Some potential losses, such as those from terrorism or earthquakes, may not be fully covered by insurance[167](index=167&type=chunk)[188](index=188&type=chunk) - **REIT Status Risks:** Failure to qualify as a REIT would result in corporate taxation, substantially reducing funds available for dividends. To maintain REIT status, the company may be forced to borrow funds or make distributions under unfavorable market conditions[220](index=220&type=chunk)[223](index=223&type=chunk) [Cybersecurity](index=45&type=section&id=Item%201C.%20Cybersecurity) BXP manages cyber risks through a NIST-based program, overseen by the Audit Committee, involving regular assessments, testing, and employee training, with no material incidents reported to date - The company's cybersecurity risk management program is based on the National Institute of Standards and Technology (NIST) Cybersecurity Framework[239](index=239&type=chunk) - The program includes annual internal and biennial third-party assessments, annual penetration testing, monthly vulnerability assessments, and regular employee training and phishing simulations[241](index=241&type=chunk)[242](index=242&type=chunk) - The Audit Committee is responsible for overseeing cybersecurity risks and meets at least annually with the company's IS department to discuss the cybersecurity defense strategy[245](index=245&type=chunk) - As of the report date, the company is not aware of any cybersecurity threats or incidents that have materially affected or are reasonably likely to materially affect its business, operations, or financial condition[238](index=238&type=chunk) [Properties](index=47&type=section&id=Item%202.%20Properties) BXP's portfolio comprises 185 properties totaling 53.3 million square feet, 87.5% occupied, with technology & media and legal services as top tenant sectors Portfolio Summary as of December 31, 2024 | Property Type | Number of Properties | Net Rentable Sq. Ft. | % Occupied | |:---|:---|:---:|:---:| | Office | 146 | 45,755,552 | 87.9% | | Life Sciences | 12 | 2,042,226 | 77.2% | | Retail | 13 | 1,061,761 | 91.6% | | Residential | 6 | 1,840,072 | 81.2% | | Hotel | 1 | 334,260 | 77.2% | | Under Construction/Redevelopment | 7 | 2,285,000 | 50.3% (Leased) | | **Total Portfolio** | **185** | **53,318,871** | **N/A** | Historical Occupancy and Revenue (In-Service Properties) | Year Ended Dec 31 | Percentage Occupied | Average Annualized Revenue per Sq. Ft. | |:---|:---:|:---:| | 2024 | 87.5% | $81.21 | | 2023 | 88.4% | $78.81 | | 2022 | 88.6% | $75.99 | | 2021 | 88.8% | $73.76 | | 2020 | 90.1% | $72.67 | - The top three clients by square feet are Salesforce (**2.10%**), Google (**1.97%**), and Biogen (**1.84%**)[263](index=263&type=chunk) - The portfolio is diversified across several sectors, with Technology & Media (**21.0%**), Legal Services (**17.1%**), and Financial Services (**20.1% combined**) being the largest[265](index=265&type=chunk) Lease Expiration Schedule (% of Total Square Feet) | Year of Expiration | Percentage of Total Square Feet | |:---|:---:| | 2025 | 6.16% | | 2026 | 3.82% | | 2027 | 4.49% | | 2028 | 7.31% | | 2029 | 7.64% | | Thereafter | 34.39% | [Legal Proceedings](index=53&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various ordinary course legal proceedings, including disputes over acquisition fees, construction impacts, and wage claims, which management believes will not have a material adverse effect - The company is a defendant in a lawsuit regarding fees from a 2010 property acquisition in New York. While a court has ruled that an "Additional Fee" and "Final Fee" are owed, the amount has not been determined and could be material if the plaintiff's calculations are accepted[868](index=868&type=chunk)[869](index=869&type=chunk)[871](index=871&type=chunk) - A tenant at an adjacent property has sued the company over construction activities at the 290 Binney Street development project, seeking injunctive relief and damages. A preliminary injunction was denied, but the case is ongoing[872](index=872&type=chunk)[874](index=874&type=chunk)[875](index=875&type=chunk) - The company is a named defendant in a class action wage and hour lawsuit filed in January 2025 concerning security services at its New York City buildings[877](index=877&type=chunk) [Part II - Financial Information](index=54&type=section&id=Part%20II) This section presents BXP's financial performance, liquidity, capital resources, and market risk disclosures, along with audited financial statements and supplementary data [Market for Common Equity and Related Matters](index=54&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) BXP common stock trades on the NYSE, with a policy of regular quarterly dividends to maintain REIT status, though its five-year total return underperformed key indices - BXP's common stock is listed on the New York Stock Exchange under the symbol "BXP"[276](index=276&type=chunk) - The company has a policy to pay regular quarterly dividends and must distribute at least **90%** of its taxable income to maintain its REIT qualification[277](index=277&type=chunk) Cumulative Total Return Comparison (2019-2024) | Index | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |:---|:---:|:---:|:---:|:---:|:---:|:---:| | BXP, Inc. | $100.00 | $71.65 | $90.43 | $55.54 | $61.55 | $69.01 | | S&P 500 Index | $100.00 | $118.40 | $152.39 | $124.79 | $157.59 | $197.02 | | Equity REIT Index | $100.00 | $92.00 | $131.78 | $99.67 | $113.35 | $123.25 | | Office REIT Index | $100.00 | $81.56 | $99.51 | $62.07 | $63.34 | $76.95 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=57&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights premier workplaces outperforming, a 2.1% NOI increase to $2.04 billion, significant net income decrease due to impairment charges, and strong liquidity management [Outlook](index=59&type=section&id=Outlook) The company anticipates an improving operating environment driven by corporate earnings, return-to-office trends, and limited new development, while actively managing its premier portfolio, development pipeline, liquidity, and leverage - Key market forces include corporate earnings growth, return-to-office behavior, and limited new development, which are serving as tailwinds. Interest rates remain a critical uncertainty[302](index=302&type=chunk) - In Q4 2024, BXP executed **2.3 million sq. ft.** of leases, its strongest quarter since Q2 2019. For the full year, **5.6 million sq. ft.** were leased with a weighted-average term of **9.8 years**[309](index=309&type=chunk)[311](index=311&type=chunk) - The company is actively pursuing dispositions of three land sites and one operating property, which could generate approximately **$200.0 million** in net proceeds in 2025[320](index=320&type=chunk) [Results of Operations (FY 2024 vs. FY 2023)](index=67&type=section&id=Results%20of%20Operations) Net income attributable to BXP, Inc. decreased by $175.9 million to $14.3 million in FY 2024 due to significant impairment charges, despite a 2.1% increase in total NOI to $2.04 billion, while Same Property NOI declined 3.3% BXP Net Income and NOI Reconciliation (in thousands) | Metric | 2024 | 2023 | Change | % Change | |:---|:---:|:---:|:---:|:---:| | Net Income Attributable to BXP, Inc. | $14,272 | $190,215 | $(175,943) | (92.50)% | | Net Operating Income | $2,041,045 | $1,998,776 | $42,269 | 2.11% | - The Same Property Portfolio NOI decreased by **$65.0 million (3.3%)**, driven by a **$55.7 million (4.9%)** increase in operating expenses and an **$11.8 million (0.4%)** decrease in total rental revenue[375](index=375&type=chunk)[378](index=378&type=chunk)[382](index=382&type=chunk) - Loss from unconsolidated joint ventures increased by **$103.6 million**, primarily due to **$341.3 million** in impairment charges in 2024 compared to **$272.6 million** in 2023[415](index=415&type=chunk) - Interest expense increased by **$65.5 million (11.3%)** primarily due to new mortgage financings, the issuance of new senior notes, and borrowings under the commercial paper program[426](index=426&type=chunk)[427](index=427&type=chunk) [Liquidity and Capital Resources](index=79&type=section&id=Liquidity%20and%20Capital%20Resources) BXP maintains strong liquidity with $366.7 million cash and $1.2 billion credit facility availability, managing $16.2 billion consolidated debt and a $1.3 billion development pipeline, supported by $1.23 billion in operating cash flow - As of February 21, 2025, the company had approximately **$366.7 million** in cash and **$1.2 billion** available under its **$2.0 billion** 2021 Credit Facility[451](index=451&type=chunk)[485](index=485&type=chunk) Consolidated Debt Summary (December 31, 2024) | Debt Type | Carrying Amount (in thousands) | |:---|:---:| | Mortgage notes payable, net | $4,276,609 | | Unsecured senior notes, net | $10,645,077 | | Unsecured term loans, net | $798,813 | | Unsecured commercial paper | $500,000 | | **Total Consolidated Debt** | **$16,220,499** | - The company's share of debt from unconsolidated joint ventures was approximately **$1.4 billion** as of December 31, 2024[509](index=509&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | 2024 | 2023 | |:---|:---:|:---:| | Net cash provided by operating activities | $1,234,501 | $1,301,520 | | Net cash used in investing activities | $(1,237,396) | $(1,193,681) | | Net cash (used in) provided by financing activities | $(274,476) | $767,916 | - The company has material cash commitments of approximately **$1.84 billion**, primarily for client obligations (**$692.0 million**) and construction contracts (**$1.15 billion**)[538](index=538&type=chunk) [Funds from Operations (FFO)](index=95&type=section&id=Funds%20from%20Operations%20(FFO)) For 2024, BXP's FFO was $1.12 billion, a slight decrease from $1.14 billion in 2023, with diluted FFO per share at $7.10, reflecting adjustments for real estate depreciation and impairment losses FFO Reconciliation for BXP, Inc. (in thousands) | Metric | 2024 | 2023 | 2022 | |:---|:---:|:---:|:---:| | Net income attributable to BXP, Inc. | $14,272 | $190,215 | $848,947 | | Adjustments (Depreciation, Impairment, etc.) | $1,106,206 | $953,582 | $334,606 | | **Funds from Operations attributable to BXP, Inc.** | **$1,120,478** | **$1,143,797** | **$1,183,553** | Diluted FFO per Share (BXP, Inc.) | Metric | 2024 | 2023 | 2022 | |:---|:---:|:---:|:---:| | Diluted FFO attributable to BXP, Inc. (Numerator) | $1,120,727 | $1,144,052 | $1,183,816 | | Weighted Average Shares (Denominator) | 157,793 | 157,201 | 157,137 | | **Diluted FFO per Share** | **$7.10** | **$7.28** | **$7.53** | [Quantitative and Qualitative Disclosures About Market Risk](index=104&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) BXP's primary market risk is interest rate exposure, with 92.6% of consolidated debt fixed-rate, and a 100 basis point rate increase would raise annualized interest expense by $21.0 million - As of December 31, 2024, approximately **92.61%** of the company's outstanding consolidated debt bore interest at fixed rates, including the effects of interest rate swaps[515](index=515&type=chunk) - The company had approximately **$1.2 billion** of unhedged variable-rate debt outstanding as of December 31, 2024[552](index=552&type=chunk) - A **100 basis point increase** in market interest rates on variable-rate debt would have increased total annualized interest expense by approximately **$21.0 million** for the year ended December 31, 2024[516](index=516&type=chunk)[554](index=554&type=chunk) [Financial Statements and Supplementary Data](index=106&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section provides audited consolidated financial statements for BXP and BPLP, including balance sheets, income statements, cash flows, and detailed notes, with unqualified audit opinions [Consolidated Financial Statements](index=106&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for BXP and BPLP as of December 31, 2024, show BXP with $26.1 billion in total assets, $18.1 billion in liabilities, and $14.3 million in net income, with BPLP reporting similar figures BXP, Inc. Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | |:---|:---:|:---:| | Total Real Estate | $21,050,255 | $20,593,459 | | Cash and Cash Equivalents | $1,254,882 | $1,531,477 | | Total Assets | $26,084,980 | $26,026,149 | | Total Liabilities | $18,137,324 | $17,833,785 | | Total Equity | $7,938,121 | $8,183,981 | BXP, Inc. Consolidated Statement of Operations Highlights (in thousands) | Account | 2024 | 2023 | 2022 | |:---|:---:|:---:|:---:| | Total Revenue | $3,407,719 | $3,273,569 | $3,108,581 | | Total Expenses | $2,387,385 | $2,239,227 | $2,050,056 | | Interest Expense | $(645,117) | $(579,572) | $(437,139) | | Net Income Attributable to BXP, Inc. | $14,272 | $190,215 | $848,947 | [Notes to Consolidated Financial Statements](index=133&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on BXP's accounting policies, real estate transactions, lease accounting, $16.2 billion consolidated debt, derivative instruments, legal proceedings, segment performance, stock-based compensation, and subsequent events - **Real Estate (Note 3):** Acquired 901 New York Avenue and 725 12th Street. Recognized a **$13.6 million** impairment loss on the Shady Grove property[772](index=772&type=chunk)[776](index=776&type=chunk)[783](index=783&type=chunk) - **Unconsolidated JVs (Note 6):** Recognized **$341.3 million** in other-than-temporary impairment losses on investments in Colorado Center, Gateway Commons, and Safeco Plaza[808](index=808&type=chunk)[813](index=813&type=chunk)[825](index=825&type=chunk) - **Debt (Note 7):** As of Dec 31, 2024, total consolidated debt was **$16.2 billion**, including **$10.6 billion** in unsecured senior notes and **$4.3 billion** in mortgage notes. In 2024, BPLP repaid **$700M** of notes, issued **$850M** of new notes, and established a **$500M** commercial paper program[826](index=826&type=chunk)[832](index=832&type=chunk)[834](index=834&type=chunk) - **Commitments & Contingencies (Note 9):** Discloses ongoing litigation, including a dispute over fees from a 2010 NYC property acquisition and a lawsuit related to construction at 290 Binney Street[868](index=868&type=chunk)[872](index=872&type=chunk) - **Segment Information (Note 12):** Reports performance by geographic region (Boston, LA, NY, SF, Seattle, DC) using "Company's share of NOI" as the primary profit measure. For 2024, Boston was the largest segment by share of NOI (**37.7%**), followed by New York (**24.2%**)[910](index=910&type=chunk)[913](index=913&type=chunk)[920](index=920&type=chunk) - **Subsequent Events (Note 17):** In January 2025, BPLP repaid **$850.0 million** of its **3.200%** senior notes at maturity[952](index=952&type=chunk) [Part III - Corporate Governance and Other Information](index=184&type=section&id=Part%20III) This section covers corporate governance, executive compensation, security ownership, and equity compensation plan details, primarily by reference to the proxy statement [Equity Compensation Plan Information](index=184&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) As of December 31, 2024, the company had over 5 million securities issuable under approved equity plans and 3.8 million available for future issuance, including non-approved plans Equity Compensation Plan Information as of December 31, 2024 | Plan Category | Securities to be Issued Upon Exercise (a) | Weighted-Average Exercise Price (b) | Securities Remaining for Future Issuance (c) | |:---|:---:|:---:|:---:| | Equity compensation plans approved by security holders | 5,074,957 | N/A | 3,576,975 | | Equity compensation plans not approved by security holders | N/A | N/A | 272,704 | | **Total** | **5,074,957** | **N/A** | **3,849,679** |