Core Viewpoint - BXP, Inc. is expected to report a year-over-year increase in revenues for the fourth quarter of 2024, but a decline in funds from operations (FFO) per share is anticipated [1][10]. Company Performance - In the last reported quarter, BXP met the Zacks Consensus Estimate for FFO per share, driven by better-than-expected revenues due to healthy leasing activity, although higher interest expenses negatively impacted results [2][11]. - Over the past four quarters, BXP's FFO per share exceeded the Zacks Consensus Estimate twice, with an average beat of 0.87% [3]. Market Conditions - The U.S. office market experienced negative net absorption of 5.8 million square feet in Q4 2024, an improvement from the previous quarter's negative 13.2 million square feet, marking the most stable quarter for office demand in two years [4]. - Despite national trends showing weaker performance, 44 out of 93 U.S. markets reported positive net absorption in Q4, with a full-year positive absorption in 29 markets, driven by demand for high-quality office buildings [5][6]. Vacancy and Rent Trends - The national vacancy rate for U.S. offices reached 20.9% in Q4, increasing by 20 basis points sequentially and 160 basis points year-over-year, although nearly half of U.S. markets saw flat or declining vacancy rates [7]. - The national asking rent slightly decreased to $38.20 in Q4 from $38.22 in the previous quarter [7]. BXP's Projections - BXP's portfolio consists of class-A office buildings in high-demand markets, and occupancy for in-service properties is expected to increase by 30 basis points to 87.3% in the upcoming quarter [8]. - Demand for BXP's life-science assets is anticipated to have performed well, supported by a healthy balance sheet [9]. Financial Estimates - The Zacks Consensus Estimate for BXP's Q4 revenues is $795.3 million, reflecting a 3.4% increase from the prior year [10]. - Interest expenses are projected to rise by 2.9% year-over-year for Q4, contributing to a downward revision of the FFO per share estimate to $1.79, indicating a 1.7% decrease from the previous year [11].

Core Insights - Wall Street analysts forecast Boston Properties (BXP) will report quarterly earnings of $1.79 per share, reflecting a year-over-year decline of 1.7% and revenues of $795.32 million, which is an increase of 3.4% compared to the previous year [1] Earnings Estimates - The consensus EPS estimate for the quarter has been adjusted upward by 0.2% over the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3] Revenue Estimates - Analysts estimate 'Revenue- Parking and other (including insurance proceeds)' at $35.46 million, indicating a year-over-year change of +12.6% [5] - 'Revenue- Hotel revenue' is expected to reach $13.24 million, reflecting a +12.2% change from the year-ago quarter [5] - 'Revenue- Development and management services' is predicted at $6.71 million, showing a significant decline of -47.3% from the prior-year quarter [6] - 'Revenue- Lease' is estimated to be $794.51 million, indicating a +3.3% change from the previous year [6] Depreciation and Amortization - Analysts predict 'Depreciation and amortization' will reach $201.50 million, down from $212.07 million reported in the same quarter of the previous year [7] Stock Performance - Boston Properties shares have decreased by -4.5% in the past month, contrasting with the Zacks S&P 500 composite's +2.7% performance, and the company holds a Zacks Rank 3 (Hold) [8]

Lease Renewals and Expansions - BXP Inc secured a long-term lease renewal and expansion with Knitwell Group at 7 Times Square in New York City, covering 246,000 square feet over 20 years, including 191,000 square feet renewal and 55,000 square feet expansion [1][3] - The company also renewed a long-term lease with Ropes & Gray, Boston's largest law firm, at the Prudential Tower in Boston, MA [1] - These renewals and expansions reflect tenant confidence in BXP's services and commitment, highlighting the demand for quality office spaces to retain top talent [2] Demand Recovery and Leasing Activity - BXP is experiencing a recovery in demand driven by return-to-office policies, low unemployment, and consistent job growth, particularly for its strategically located, high-quality office properties [5] - In Q3 2024, the company executed 74 leases totaling 1.1 million square feet with a weighted average lease term of 7.2 years [6] - Total leasing activity in the first three quarters of 2024 reached 3.3 million square feet, a 25% increase compared to the same period in 2023 [6] - As of Sept 30, 2024, BXP has 2.7 million square feet of leases in its pipeline, positioning it well to navigate the current market environment [6] Market Position and Growth Prospects - BXP's high-quality office portfolio, strong tenant roster, strategic capital allocation, and healthy balance sheet support its growth prospects [7] - The company is converting office buildings to laboratory spaces to capitalize on strong demand for life-science assets [7] - However, elevated supply of office properties in some markets may increase competition and pressure pricing power [8] Stock Performance and Analyst Sentiment - Over the past six months, BXP's shares have risen 1.4%, outperforming the industry's decline of 6.3% [8] - Analysts are bullish on BXP, with the Zacks Consensus Estimate for 2025 FFO per share revised upward to $7.13 [8] Broader REIT Sector - OUTFRONT Media (OUT) and Cousins Properties (CUZ) are better-ranked stocks in the REIT sector, with Zacks Rank 1 (Strong Buy) and 2 (Buy), respectively [9] - The Zacks Consensus Estimate for OUTFRONT Media's 2025 FFO per share has been raised by 2.8% to $1.86 over the past two months [9] - The Zacks Consensus Estimate for Cousins Properties' 2025 FFO per share has been revised upward to $2.74 over the past month [10]

Group 1 - The article emphasizes the importance of being selective when investing in the REIT sector due to the lack of significant business moat advantages [1] - It highlights the competitive nature of the market, particularly from new construction, which poses challenges for existing REITs [1] Group 2 - The article does not provide specific financial data or performance metrics related to the REITs discussed [2]

Group 1 - BXP, Inc. acquired the 725 12th Street property in Washington, DC for $34 million, with plans for demolition and redevelopment into a 320,000 square-foot workplace, expected to be completed by late 2028 [1][2] - The property is strategically located in the Central Business District, three blocks from the White House, providing stunning views and outdoor areas for tenants [2] - BXP has secured a lease of approximately 150,000 square feet with McDermott Will & Emery for the top five floors of the new building, and is negotiating for the remaining space [3] Group 2 - BXP has a strong portfolio of Class A office assets and is experiencing healthy tenant demand, which is expected to drive leasing activity [4] - The company is enhancing its portfolio quality through acquisitions and development in core markets while divesting non-core properties, reflecting prudent capital management [5] - BXP's shares have increased by 14.8% over the past six months, outperforming the industry growth of 1.7% [5]

I am pretty selective when it comes to real estate exposure in my portfolio ever since the pandemic. When businesses shut down in 2020, it exposed a real weakness in a lot of different REITs thatFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 10 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering strategies to utilize various investment vehicles - seeking out high quality dividend stock ...

Core Viewpoint - BXP Inc. has secured a long-term lease renewal with Ropes & Gray at Prudential Tower, indicating strong demand for quality office spaces in Boston's competitive market [1][4]. Group 1: Lease and Tenant Information - The lease with Ropes & Gray covers approximately 413,000 square feet and extends through 2041, reflecting the law firm's confidence in BXP [1]. - Prudential Tower, with 1.2 million square feet, is one of the tallest office buildings in Prudential Center, attracting leading companies due to its central location and amenities [2]. - The Prudential Center offers leisure amenities and easy access to major transportation, enhancing its appeal as a prime office location [3]. Group 2: Market Demand and Performance - The return-to-office policies and low unemployment rates are driving demand for BXP's high-quality office properties [4]. - In Q3 2024, BXP executed 74 leases totaling around 1.1 million square feet, with a 25% increase in leasing activity compared to the same period in 2023 [5]. - BXP has a pipeline of 2.7 million square feet of leases, positioning the company well in the current market environment [5]. Group 3: Future Outlook - BXP's high-quality office portfolio, strong tenant roster, and strategic capital allocation are expected to support growth, particularly in the life-science sector [7]. - However, elevated supply in some markets may increase competition and impact pricing power [7]. - The company has seen a 19.2% increase in share price over the past six months, outperforming the industry average of 3.5% [8].

Shares of BXP Inc. (BXP) have rallied 24.8% in the past six months, outperforming the industry's 11.2% growth.In October 2024, BXP reported third-quarter funds from operations (FFO) per share of $1.81, in line with the Zacks Consensus Estimate. However, the reported figure declined 2.7% year over year.BXP’s quarterly results reflected better-than-anticipated revenues due to healthy leasing activity. However, higher interest expenses during the quarter acted as a dampener. Image Source: Zacks Investment Rese ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13087 (BXP, Inc.) Commission File Number: 0-50209 (Boston Properties Limited Partnership) BXP, INC. | --- | --- | --- ...

Financial Data and Key Metrics Changes - Funds from operations (FFO) per share for Q3 2024 was $1.81, which is $0.01 above the forecast and in line with market consensus [10][83] - Leasing volume for the first three quarters of 2024 was 25% higher than the same period in 2023, totaling 3.3 million square feet signed [10][39] - The company narrowed its full-year 2024 FFO guidance to a range of $7.09 to $7.11 per share, adjusting for a $0.02 dilution from a recent bond deal [85] Business Line Data and Key Metrics Changes - The weighted average term for office leases signed in Q3 remained long at 7.2 years [10] - The company completed 74 transactions in Q3, with 32 lease renewals for 681,000 square feet and 42 new client leases encompassing 427,000 square feet [51] - The mark-to-market of leases that commenced in Q3 was down about 4.5%, while starting cash rents on new leases were up 9% compared to previous in-place rents [53][54] Market Data and Key Metrics Changes - Direct vacancy for premier workplaces was 13.2%, compared to 18.7% for the broader market, indicating a strong demand for high-quality office spaces [20] - Asking rents for premier workplaces are 50% higher than the broader market, with BXP's portfolio showing 90.1% occupancy and 92.1% leased as of the end of Q3 [21] - Office sales volume in Q3 was $8.2 billion, 15% greater than Q2 2024 and 32% above Q3 2023, driven by lower short-term interest rates and increased leasing activity [24] Company Strategy and Development Direction - BXP is focusing on premier workplaces and has a significant development pipeline with nine projects underway, expected to contribute to external FFO per share growth over time [36] - The company is actively pursuing acquisitions and has a growing pipeline of potential opportunities, including residential developments [29] - BXP aims to leverage its strengths in a constructive environment of lower interest rates and higher corporate earnings growth to gain market share [37] Management's Comments on Operating Environment and Future Outlook - Management noted that interest rates, corporate earnings, and return-to-office behaviors are currently favorable for BXP's performance [12] - The company does not foresee a looming recession affecting client decision-making, with S&P 500 earnings expected to grow by 9.9% in 2024 [15] - Management expressed optimism about leasing activity and the potential for further improvements in occupancy rates in 2025 [106] Other Important Information - The company has broken ground on the Grand Central Madison Concourse Access phase, a significant project in Midtown [34] - BXP's capital allocation activities include active negotiations for the disposition of non-income-producing sites, expected to generate over $70 million in proceeds [30] - The company is also exploring alternative uses for its suburban land portfolio, including multifamily developments [47] Q&A Session Summary Question: What needs to change for the leasing dynamics to improve in San Francisco and Boston suburbs? - Management indicated that a return of technology and life science demand is essential, along with a reduction in sublease availability in San Francisco [92][95] Question: How is the company thinking about pre-leasing and risks at 343 Madison? - Management highlighted the strong demand in Midtown, particularly from financial services, and noted that matching demand with the right product is crucial [100][102] Question: What is the occupancy trajectory going forward? - Management expressed optimism about signing over 2 million square feet of leases with revenue commencing in 2024 and 2025 to maintain flat occupancy [105][106] Question: Are there lessons learned from New York City regarding the return to office mandates? - Management acknowledged cultural differences between the West Coast and East Coast but emphasized that companies are increasingly recognizing the need for in-person work [110][112]