BXP, Inc. (NYSE:BXP), which just changed its name last month from Boston Properties, covers its robust 6% dividend yield with funds from operations and has a well-leased office real estate portfolio. Supatman/iStock via Getty Images Though the trust has a high asset concentration and is not as diversified as one would wish, BXP easily earns its dividend with funds from operations. With a low payout ratio in the 50-percent range and a low valuation based on FFO, I think BXP offers passive income investors a ...

Furthremore, a great deal of money is going to be made by those buying the " middle 50% of office assets." Meanwhile, the outlook of industrial properties and data centers is positive. Banks will resume lending to commercial real estate companies again when the Federal Reserve starts cutting rates, he stated. Similarly, investment manager Invesco predicted that lower interest rates would spark a recovery in commercial real estate later this year. Here are three commercial real estate stocks to buy. "Leasing ...

One of the key advantages of investing in REIT stocks is the potential for high dividend yields. Which are often higher than those of other equities. REITs are legally required to distribute at least 90% of their taxable income to shareholders annually in the form of dividends. This makes them highly attractive for dividend income. They also offer the liquidity of stocks, allowing investors to buy and sell shares easily on major exchanges. To initiate, SL Green Realty Corp. (SLG) is a real estate investment ...

Pgiam Boston Properties First Quarter Financial Performance Boston Properties' balance sheet had a rather uneventful first quarter. Investors should note that the primary asset on the company's balance sheet is real estate assets, but accrued rental income, deferred charges, and investments in unconsolidated joint ventures are also notable components. Cash fell from $1.5 billion to $700 million in the first quarter. A good chunk of that cash decline likely came from the $700 million drop in unsecured notes, ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=6&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) Presents unaudited Q1 2024 consolidated financial statements for BXP and BPLP, detailing key financial positions [Boston Properties, Inc. (BXP) Consolidated Financial Statements](index=6&type=section&id=Boston%20Properties%2C%20Inc.%20Consolidated%20Financial%20Statements) BXP reported Q1 2024 revenues of $839.4 million and net income of $79.9 million, with total assets decreasing to $25.5 billion BXP Consolidated Statement of Operations (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | $839,439 | $803,200 | | **Net Income Attributable to BXP** | $79,883 | $77,890 | | **Diluted EPS** | $0.51 | $0.50 | BXP Consolidated Balance Sheet Highlights (as of March 31, 2024) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total Real Estate | $20,768,288 | $20,593,459 | | Cash and Cash Equivalents | $701,695 | $1,531,477 | | **Total Assets** | **$25,525,978** | **$26,026,149** | | Total Liabilities | $17,240,265 | $17,833,785 | | **Total Equity** | **$8,277,572** | **$8,183,981** | BXP Consolidated Cash Flows (Q1 2024 vs Q1 2023) | Cash Flow From | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Operating Activities | $197,595 | $234,010 | | Investing Activities | ($286,619) | ($285,592) | | Financing Activities | ($756,909) | $279,052 | [Boston Properties Limited Partnership (BPLP) Consolidated Financial Statements](index=13&type=section&id=Boston%20Properties%20Limited%20Partnership%20Consolidated%20Financial%20Statements) BPLP reported Q1 2024 revenues of $839.4 million and net income of $91.1 million, with total assets of $25.3 billion BPLP Consolidated Statement of Operations (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | $839,439 | $803,200 | | **Net Income Attributable to BPLP** | $91,080 | $88,830 | | **Diluted EPU** | $0.52 | $0.51 | BPLP Consolidated Balance Sheet Highlights (as of March 31, 2024) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total Real Estate | $20,527,087 | $20,350,561 | | **Total Assets** | **$25,284,777** | **$25,783,251** | | Total Liabilities | $17,240,265 | $17,833,785 | | **Total Capital** | **$6,735,962** | **$6,593,508** | [Notes to the Consolidated Financial Statements](index=20&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Details key Q1 2024 events including a JV acquisition, an impairment loss, an asset sale, and financing activities - As of March 31, 2024, the Company owned or had interests in a portfolio of 187 commercial real estate properties totaling approximately **53.5 million net rentable square feet**[68](index=68&type=chunk) - On January 8, 2024, the Company acquired its joint venture partner's 50% interest in the venture owning 901 New York Avenue, DC, resulting in a **gain on consolidation of approximately $21.8 million**[132](index=132&type=chunk)[342](index=342&type=chunk)[432](index=432&type=chunk) - The Company recognized an **impairment loss of approximately $13.6 million** on its Shady Grove property in Rockville, Maryland, due to a shorter-than-expected hold period[105](index=105&type=chunk)[115](index=115&type=chunk)[344](index=344&type=chunk) - On March 21, 2024, the Company sold a **45% interest in the 290 Binney Street development project** in Cambridge, MA, with an institutional investor funding approximately $97.2 million at closing[189](index=189&type=chunk)[322](index=322&type=chunk) - In February 2024, BPLP **repaid $700.0 million** of its 3.800% senior notes at maturity[148](index=148&type=chunk)[347](index=347&type=chunk)[507](index=507&type=chunk) - Subsequent to quarter-end, in April 2024, BPLP established a **$500 million unsecured commercial paper program** and increased its 2021 Credit Facility borrowing capacity to **$2.0 billion**[243](index=243&type=chunk)[271](index=271&type=chunk)[323](index=323&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2024 performance, leasing activity, and financial condition in a challenging office market [Overview and Outlook](index=46&type=section&id=Overview%20and%20Outlook) Management outlines its strategy of focusing on premier workplaces, which outperform the broader office market - The company's core strategy is to develop, acquire, and manage premier workplaces in gateway markets, focusing on long-term leases with financially strong clients[251](index=251&type=chunk) - Management believes premier workplaces have consistently and substantially outperformed the broader office market, validating their strategy; approximately **89% of the company's share of NOI comes from CBD assets**[290](index=290&type=chunk)[295](index=295&type=chunk) - Key external forces impacting performance are interest rates and corporate earnings, with projected S&P 500 earnings growth of **11-13% over the next two years** expected to be constructive for leasing[253](index=253&type=chunk)[279](index=279&type=chunk) [Leasing and Investment Activity](index=48&type=section&id=Leasing%20and%20Investment%20Activity) BXP executed 900,000 sq ft of leases in Q1 2024 and advanced its development and investment pipeline - Executed 61 leases totaling approximately **900,000 sq. ft. in Q1 2024**, compared to 660,500 sq. ft. in Q1 2023[283](index=283&type=chunk) - Overall in-service office and retail occupancy was **88.2% at March 31, 2024**, a 20 basis point decrease from December 31, 2023; including signed leases not yet commenced, the portfolio was 89.9% leased[284](index=284&type=chunk) - The development/redevelopment pipeline includes 11 properties totaling 3.2 million sq. ft with a remaining company share of cost of approximately **$1.4 billion**[299](index=299&type=chunk)[445](index=445&type=chunk) - Completed the sale of a 45% interest in the 290 Binney Street life sciences development, reducing BXP's share of the estimated development spend by approximately **$533.5 million**[286](index=286&type=chunk) [Results of Operations](index=54&type=section&id=Results%20of%20Operations) Total portfolio NOI grew 3.6%, while Same Property NOI declined 1.6% due to lower occupancy and higher interest costs Net Operating Income (NOI) Comparison (Q1 2024 vs Q1 2023) | Portfolio | Q1 2024 NOI (in thousands) | Q1 2023 NOI (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Same Property Portfolio | $483,295 | $491,212 | (1.61)% | | **Total Portfolio** | **$508,820** | **$491,006** | **3.63%** | - Interest expense **increased by $27.7 million (20.6%)** year-over-year, primarily due to new mortgage loan financings and the issuance of senior notes in 2023[328](index=328&type=chunk)[386](index=386&type=chunk)[613](index=613&type=chunk) - Income from unconsolidated joint ventures increased by $26.8 million, largely due to a **$21.8 million gain on the consolidation** of 901 New York Avenue[328](index=328&type=chunk)[432](index=432&type=chunk) - An **impairment loss of $13.6 million** was recognized on the Shady Grove property due to a revised, shorter holding period[344](index=344&type=chunk)[385](index=385&type=chunk)[434](index=434&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $502.5 million in cash and a $2.0 billion credit facility as of May 2, 2024 - As of May 2, 2024, liquidity included approximately **$502.5 million in cash** and **$2.0 billion available** under the 2021 Credit Facility[426](index=426&type=chunk) - Subsequent to quarter-end, BPLP established a **$500M commercial paper program**, using proceeds to reduce its 2023 Unsecured Term Loan[323](index=323&type=chunk)[447](index=447&type=chunk)[534](index=534&type=chunk) - The development pipeline has a remaining funding requirement of approximately **$1.4 billion through 2027**[445](index=445&type=chunk) Consolidated Debt Summary (as of March 31, 2024) | Debt Component | Amount (in thousands) | | :--- | :--- | | Mortgage notes payable, net | $4,368,367 | | Unsecured senior notes, net | $9,794,527 | | Unsecured term loan, net | $1,199,430 | | **Total Consolidated Debt** | **$15,362,324** | [Funds from Operations (FFO)](index=80&type=section&id=Funds%20from%20Operations%20(FFO)) Diluted FFO per share remained stable at $1.73 for Q1 2024, consistent with the prior-year period FFO Reconciliation and Per Share Data (BXP) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income Attributable to BXP (in thousands) | $79,883 | $77,890 | | **Diluted FFO Attributable to BXP (in thousands)** | **$271,303** | **$271,981** | | Diluted Weighted Avg. Shares (in thousands) | 157,132 | 157,043 | | **Diluted FFO per Share** | **$1.73** | **$1.73** | [Quantitative and Qualitative Disclosures about Market Risk](index=86&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk from interest rates is fully hedged for its $2.1 billion of variable-rate debt - The company's predominant market risk is changes in interest rates[553](index=553&type=chunk) - As of March 31, 2024, the company had **$2.1 billion of variable-rate debt, all of which was fixed** through interest rate swaps, leaving no unhedged variable-rate debt[553](index=553&type=chunk) Debt Maturity Profile as of March 31, 2024 | Maturity Year | Total Debt (in thousands) | | :--- | :--- | | 2024 | $1,177,770 | | 2025 | $1,338,197 | | 2026 | $1,984,958 | | 2027 | $3,038,308 | | 2028 | $1,591,290 | | 2029+ | $6,231,801 | | **Total** | **$15,362,324** | [Controls and Procedures](index=87&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024 - The CEO and CFO concluded that **disclosure controls and procedures for both BXP and BPLP were effective** as of March 31, 2024[555](index=555&type=chunk)[556](index=556&type=chunk) - **No material changes** to internal control over financial reporting occurred during the first quarter of 2024[530](index=530&type=chunk)[531](index=531&type=chunk) [PART II. OTHER INFORMATION](index=88&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Risk Factors](index=88&type=section&id=ITEM%201A.%20Risk%20Factors) Confirms no material changes to risk factors disclosed in the 2023 Annual Report on Form 10-K - There were **no material changes** to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[533](index=533&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=88&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the issuance of common units to BXP and minor share repurchases for employee tax obligations - BPLP issued **84,546 common units to BXP for approximately $0.5 million** in connection with BXP's employee stock plans under a Section 4(a)(2) exemption[576](index=576&type=chunk) - BXP repurchased **12,546 shares of its common stock at an average price of $69.32 per share** from employees to satisfy tax withholding obligations[575](index=575&type=chunk)[576](index=576&type=chunk) [Other Information](index=89&type=section&id=ITEM%205.%20Other%20Information) Reports no adoption, termination, or modification of Rule 10b5-1 trading arrangements by directors or officers - During Q1 2024, **no directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement**[563](index=563&type=chunk)

Q1 2024 Lease expirations - Los Angeles region in-service properties 1, 2, 3 as of March 31, 2024 OFFICE | --- | --- | --- | --- | --- | --- | --- | |------------------------------|---------------------------------------------------------|---------------------------------------------------------|------------------------------------------------------------------|---------------------|-------------------------------------------------------------------------------|-------| | Year of Lease \nExpiration | Rentab ...

Boston Properties Inc.’s (BXP) first-quarter 2024 funds from operations (FFO) per share of $1.73 was in line with the Zacks Consensus Estimate. The reported figure remained unchanged year over year.BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter acted as a dampener. BXP also lowered its guidance for 2024 FFO per share.Quarterly revenues from lease came in at $788.6 million, up 4.2% year over year. The Zacks Co ...

For the quarter ended March 2024, Boston Properties (BXP) reported revenue of $788.59 million, up 4.2% over the same period last year. EPS came in at $1.73, compared to $0.50 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $768.91 million, representing a surprise of +2.56%. The company has not delivered EPS surprise, with the consensus EPS estimate being $1.73. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Boston Properties (BXP) came out with quarterly funds from operations (FFO) of $1.73 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $1.73 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this real estate investment trust would post FFO of $1.81 per share when it actually produced FFO of $1.82, delivering a surprise of 0.55%.Over the last four quarters, the company has surpassed consensus FFO estimates three times.Bost ...

OVERVIEW [Company Profile](index=2&type=section&id=Company%20Profile) Boston Properties, Inc. (BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the US, operating in six dynamic gateway markets, with a portfolio of 187 properties totaling 53.5 million square feet. - BXP 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[49](index=49&type=chunk) - BXP's portfolio totals **53.5 million square feet** and **187 properties**, including **11 properties** under construction/redevelopment, comprising **165 office**, **14 retail**, **7 residential**, and **1 hotel property**[49](index=49&type=chunk) - BXP's primary business objective is to maximize return on investment, achieved by focusing on premier workplaces in dynamic gateway markets, investing in high-quality buildings, maintaining full-service real estate capabilities, pursuing asset class adjacencies (life sciences, residential), leading in sustainability, and ensuring a strong balance sheet[55](index=55&type=chunk) Company Snapshot (as of March 31, 2024) | Metric | Value | | :------------------------------------------------------------------ | :-------------------- | | Fiscal Year-End | December 31 | | Total Properties (incl. JVs & dev/redev) | 187 | | Total Square Feet (incl. JVs & dev/redev) (in square feet) | 53.5 million | | Common shares outstanding, plus common units and LTIP units | 176.2 million | | Closing Price, at the end of the quarter | $65.31 per share | | Dividend - Quarter/Annualized | $0.98/$3.92 per share | | Dividend Yield | 6.0% | | Consolidated Market Capitalization | $26.9 billion | | BXP's Share of Market Capitalization | $26.9 billion | | Unsecured Senior Debt Ratings | BBB (S&P); Baa2 (Moody's) | [Guidance and assumptions](index=6&type=section&id=Guidance%20and%20assumptions) BXP provides guidance for Q2 2024 and full-year 2024 diluted EPS and FFO per share, based on management's view of market conditions, excluding future acquisitions, dispositions, capital market activities, write-offs, or impairment charges. - BXP's guidance for Q2 2024 and full year 2024 for diluted EPS and FFO per common share is based on management's view of current and future market conditions, excluding future acquisitions/dispositions, capital market activities, write-offs, or impairment charges[57](index=57&type=chunk) Projected EPS and FFO per share (diluted) | Metric | Q2 2024 Low | Q2 2024 High | Full Year 2024 Low | Full Year 2024 High | | :-------------------------- | :---------- | :----------- | :----------------- | :------------------ | | Projected EPS (diluted) | $0.45 | $0.47 | $1.97 | $2.09 | | Projected FFO per share (diluted) | $1.70 | $1.72 | $6.98 | $7.10 | Full Year 2024 Operating Property Activity Guidance | Metric | Low (in millions of USD) | High (in millions of USD) | | :-------------------------------------------------------------------------- | :----------------------- | :---------------------- | | Average In-service portfolio occupancy | 87.20 % | 88.60 % | | Decrease in BXP's Share of Same Property NOI (excluding termination income) | (3.00)% | (1.00)% | | Decrease in BXP's Share of Same Property NOI - cash (excluding termination income) | (3.00)% | (1.00)% | | BXP's Share of Non Same Properties' incremental contribution to NOI | $75,000 | $82,000 | | BXP's Share of incremental NOI related to asset sales | $(6,000) | $(6,000) | | BXP's Share of straight-line rent and fair value lease revenue (non-cash) | $115,000 | $130,000 | | Termination income | $6,000 | $8,000 | | General and administrative expense | $(161,000) | $(157,000) | | Consolidated net interest expense | $(600,000) | $(585,000) | | Unconsolidated joint venture interest expense | $(78,000) | $(74,000) | | Noncontrolling interest in property partnerships' share of FFO | $(148,000) | $(138,000) | FINANCIAL INFORMATION [Financial Highlights](index=7&type=section&id=Financial%20Highlights) BXP reported a diluted EPS of $0.51 for Q1 2024, down from $0.76 in Q4 2023, with FFO per share also decreasing to $1.73 from $1.82, while revenue increased slightly and termination income saw a significant decrease. Key Financial Highlights (Q1 2024 vs Q4 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Dec-23 (in millions of USD) | Change (in millions of USD) | | :------------------------------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------------- | | Net income attributable to Boston Properties, Inc. | $79,883 | $119,925 | $(40,042) | | Net income attributable to Boston Properties, Inc. per share - diluted | $0.51 | $0.76 | $(0.25) | | FFO attributable to Boston Properties, Inc. | $271,273 | $286,203 | $(14,930) | | Diluted FFO per share | $1.73 | $1.82 | $(0.09) | | Dividends per common share | $0.98 | $0.98 | $0.00 | | Funds available for distribution (FAD) | $194,742 | $224,423 | $(29,681) | | Revenue | $839,439 | $828,933 | $10,506 | | BXP's Share of termination income | $4,692 | $10,350 | $(5,658) | | Interest Coverage Ratio (excluding capitalized interest) | 2.89 | 2.90 | (0.01) | | Fixed Charge Coverage Ratio | 2.51 | 2.46 | 0.05 | | BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) | 7.81 | 7.37 | 0.44 | | Occupancy % of In-Service Properties | 88.2 % | 88.4 % | (0.2)% | | Consolidated Debt | $15,362,324 | $15,856,297 | $(493,973) | | BXP's Share of Debt | $15,375,437 | $15,917,577 | $(542,140) | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased to $25.5 billion from $26.0 billion at December 31, 2023, primarily due to a significant reduction in cash and cash equivalents, while total liabilities also decreased, driven by a reduction in senior unsecured notes. Consolidated Balance Sheet Highlights (as of March 31, 2024 vs Dec 31, 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Dec-23 (in millions of USD) | Change (in millions of USD) | | :-------------------------------------- | :----------------------------- | :----------------------------- | :-------------------------- | | Total assets | $25,525,978 | $26,026,149 | $(500,171) | | Cash and cash equivalents | $701,695 | $1,531,477 | $(829,782) | | Real estate, net | $20,768,288 | $20,593,459 | $174,829 | | Total liabilities | $17,240,265 | $17,833,785 | $(593,520) | | Senior unsecured notes, net | $9,794,527 | $10,491,617 | $(697,090) | | Stockholders' equity attributable to Boston Properties, Inc. | $5,857,699 | $5,876,697 | $(18,998) | [Consolidated Income Statements](index=10&type=section&id=Consolidated%20Income%20Statements) For Q1 2024, total revenue increased slightly to $839.4 million from $828.9 million in Q4 2023, primarily driven by lease revenue, but net income attributable to Boston Properties, Inc. significantly decreased to $79.9 million from $119.9 million, largely due to an impairment loss and lower income from unconsolidated joint ventures. Consolidated Income Statement Highlights (Q1 2024 vs Q4 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Dec-23 (in millions of USD) | Change (in millions of USD) | | :---------------------------------------------- | :----------------------------- | :----------------------------- | :-------------------------- | | Total revenue | $839,439 | $828,933 | $10,506 | | Lease revenue | $788,590 | $768,884 | $19,706 | | Development and management services revenue | $6,154 | $12,728 | $(6,574) | | Total expenses | $593,712 | $566,986 | $26,726 | | Depreciation and amortization | $218,716 | $212,067 | $6,649 | | Impairment loss | $13,615 | $0 | $13,615 | | Income from unconsolidated joint ventures | $19,186 | $22,250 | $(3,064) | | Net income attributable to Boston Properties, Inc. | $79,883 | $119,925 | $(40,042) | | EPS - diluted | $0.51 | $0.76 | $(0.25) | [Funds From Operations (FFO)](index=11&type=section&id=Funds%20From%20Operations%20(FFO)) FFO attributable to Boston Properties, Inc. decreased to $271.3 million ($1.73 per diluted share) in Q1 2024 from $286.2 million ($1.82 per diluted share) in Q4 2023, primarily influenced by an impairment loss and changes in non-real estate related amortization. FFO Attributable to Boston Properties, Inc. (Q1 2024 vs Q4 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Dec-23 (in millions of USD) | Change (in millions of USD) | | :---------------------------------------------- | :----------------------------- | :----------------------------- | :-------------------------- | | Net income attributable to Boston Properties, Inc. | $79,883 | $119,925 | $(40,042) | | Depreciation and amortization expense | $218,716 | $212,067 | $6,649 | | Impairment loss | $13,615 | $0 | $13,615 | | Gain on sale / consolidation (unconsolidated JVs) | $21,696 | $28,412 | $(6,716) | | FFO attributable to Boston Properties, Inc. | $271,273 | $286,203 | $(14,930) | | Diluted FFO per share | $1.73 | $1.82 | $(0.09) | [Funds Available for Distribution (FAD)](index=12&type=section&id=Funds%20Available%20for%20Distribution%20(FAD)) FAD decreased to $194.7 million in Q1 2024 from $224.4 million in Q4 2023, with the FAD Payout Ratio increasing significantly to 88.72% from 76.68%, indicating a larger portion of FAD being distributed. Funds Available for Distribution (FAD) (Q1 2024 vs Q4 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Dec-23 (in millions of USD) | Change (in millions of USD) | | :------------------------------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------------- | | Basic FFO | $302,861 | $318,925 | $(16,064) | | BXP's Share of lease transaction costs that qualify as rent inducements | $5,325 | $1,314 | $4,011 | | Stock-based compensation | $18,527 | $4,469 | $14,058 | | BXP's Share of straight-line rent | $(39,484) | $(28,765) | $(10,719) | | BXP's Share of fair value lease revenue | $(2,392) | $(3,441) | $1,049 | | BXP's Share of 2nd generation tenant improvements and leasing commissions | $(84,531) | $(53,709) | $(30,822) | | Funds available for distribution (FAD) | $194,742 | $224,423 | $(29,681) | | Distributions to common shareholders and unitholders | $172,772 | $172,095 | $677 | | FAD Payout Ratio | 88.72 % | 76.68 % | 12.04 % | [Net Operating Income (NOI)](index=13&type=section&id=Net%20Operating%20Income%20(NOI)) BXP's Share of NOI (excluding termination income) for Q1 2024 was $493.0 million, an increase from $483.8 million in Q1 2023, while BXP's Share of Same Property NOI (excluding termination income) decreased by 1.9% YoY, and the cash basis decreased by 2.9% YoY. BXP's Share of NOI (excluding termination income) (Q1 2024 vs Q1 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Mar-23 (in millions of USD) | Change (in millions of USD) | | :------------------------------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------------- | | Net Operating Income (NOI) | $508,820 | $491,006 | $17,814 | | BXP's Share of NOI | $497,680 | $484,665 | $13,015 | | BXP's Share of NOI (excluding termination income) | $492,988 | $483,765 | $9,223 | | BXP's Share of Same Property NOI (excluding termination income) | $465,243 | $474,198 | $(8,955) | | Change in BXP's Share of Same Property NOI (excluding termination income) | (1.9)% | | | | BXP's Share of Same Property NOI - cash (excluding termination income) | $443,291 | $456,464 | $(13,173) | | Change in BXP's Share of Same Property NOI - cash (excluding termination income) | (2.9)% | | | [Same Property Net Operating Income (NOI) by Reportable Segment](index=15&type=section&id=Same%20Property%20Net%20Operating%20Income%20(NOI)%20by%20Reportable%20Segment) The Same Property NOI (excluding termination income) for Office properties decreased by 2.3% YoY, while Hotel & Residential properties saw a 19.2% increase, with similar trends observed on a cash basis. Same Property NOI (excluding termination income) by Segment (Q1 2024 vs Q1 2023) | Segment | 31-Mar-24 (in millions of USD) | 31-Mar-23 (in millions of USD) | Change (in millions of USD) | % Change | | :------------------ | :----------------------------- | :----------------------------- | :-------------------------- | :-------- | | Office NOI | $472,316 | $483,324 | $(11,008) | (2.3)% | | Hotel & Residential NOI | $9,169 | $7,693 | $1,476 | 19.2% | | Consolidated Total NOI | $481,485 | $491,017 | $(9,532) | (1.9)% | | Office NOI - cash | $447,866 | $464,585 | $(16,719) | (3.6)% | | Hotel & Residential NOI - cash | $8,988 | $7,681 | $1,307 | 17.0% | | Consolidated Total NOI - cash | $456,854 | $472,266 | $(15,412) | (3.3)% | [Capital Expenditures, Tenant Improvement Costs and Leasing Commissions](index=17&type=section&id=Capital%20Expenditures%2C%20Tenant%20Improvement%20Costs%20and%20Leasing%20Commissions) BXP's Share of Capital Expenditures decreased to $24.9 million in Q1 2024 from $27.1 million in Q4 2023, primarily due to a decrease in maintenance capital expenditures, while tenant improvements and lease commissions per square foot were $79.32. BXP's Share of Capital Expenditures (Q1 2024 vs Q4 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Dec-23 (in millions of USD) | Change (in millions of USD) | | :------------------------------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------------- | | Maintenance capital expenditures | $13,102 | $18,302 | $(5,200) | | Repositioning capital expenditures | $12,276 | $10,919 | $1,357 | | Hotel improvements, equipment upgrades and replacements | $182 | $358 | $(176) | | BXP's Share of Capital Expenditures | $24,904 | $27,125 | $(2,221) | | Tenant improvements and lease commissions PSF | $79.32 | $83.39 | $(4.07) | [Acquisitions and Dispositions](index=18&type=section&id=Acquisitions%20and%20Dispositions) In Q1 2024, BXP acquired its joint venture partner's 50% interest in 901 New York Avenue for $10.0 million, extending the anchor client's lease and planning building enhancements, and also sold a 45% ownership interest in 290 Binney Street to NBIM, retaining a 55% interest. - On January 8, 2024, BXP acquired its joint venture partner's **50%** ownership interest in 901 New York Avenue for **$10.0 million**, extending the anchor client's lease through 2042 and agreeing to **$25.0 million** in building enhancements[138](index=138&type=chunk)[78](index=78&type=chunk) - On March 21, 2024, BXP sold a **45%** ownership interest in 290 Binney Street to Norges Bank Investment Management (NBIM), receiving approximately **$142 million**, including a **$97 million** special distribution for pre-formation costs. BXP retains a **55%** ownership and will provide development, property management, and leasing services[108](index=108&type=chunk)[78](index=78&type=chunk) DEVELOPMENT ACTIVITY [Construction in Progress](index=19&type=section&id=Construction%20in%20Progress) BXP has 11 properties under construction/redevelopment totaling 3.17 million square feet, with an estimated total investment of $2.39 billion, of which $1.15 billion has been invested, and varying lease percentages across property types. Construction in Progress Overview (as of March 31, 2024) | Property Type | Square Feet (in square feet) | Investment to Date (in millions of USD) | Estimated Total Investment (in millions of USD) | Percentage Leased | | :------------------ | :--------------------------- | :-------------------------------------- | :---------------------------------------------- | :---------------- | | Office | 540,000 | $373,033 | $479,300 | 20 % | | Lab/Life Sciences | 1,571,000 | $640,921 | $1,193,600 | 64 % | | Residential | 909,000 | $82,635 | $645,500 | 3 % | | Retail | 151,000 | $55,860 | $70,400 | 78 % | | Total | 3,171,000 | $1,152,449 | $2,388,800 | 54 % | - The 290 Binney Street project (**55%** ownership) in Cambridge, MA, is **100%** leased with an estimated total investment of **$508.0 million** and future equity requirement of **$302.0 million**[140](index=140&type=chunk) [Land Parcels and Purchase Options](index=20&type=section&id=Land%20Parcels%20and%20Purchase%20Options) BXP owns land parcels with approximately 15.6 million developable square feet across various locations and holds purchase options for an additional 3.07 million developable square feet in Boston, Waltham, and Cambridge, MA. Owned Land Parcels (Approximate Developable Square Feet) | Location | Approximate Developable Square Feet (in square feet) | | :------------------------------------------------ | :------------------------------------------------- | | Reston, VA | 2,229,000 | | San Jose, CA | 2,830,000 | | New York, NY (25% ownership) | 2,000,000 | | Princeton, NJ | 1,723,000 | | San Jose, CA (55% ownership) | 1,088,000 | | New York, NY (55% ownership) | 895,000 | | San Francisco, CA | 850,000 | | Santa Clara, CA | 632,000 | | Washington, DC (50% ownership) | 520,000 | | South San Francisco, CA (50% ownership) | 451,000 | | Rockville, MD | 435,000 | | Springfield, VA | 422,000 | | Lexington, MA | 420,000 | | Waltham, MA | 365,000 | | Herndon, VA (50% ownership) | 350,000 | | El Segundo, CA (50% ownership) | 275,000 | | Dulles, VA | 150,000 | | Total | 15,635,000 | Land Purchase Options (Approximate Developable Square Feet) | Location | Approximate Developable Square Feet (in square feet) | | :------------------ | :------------------------------------------------- | | Boston, MA | 1,300,000 | | Waltham, MA | 1,200,000 | | Cambridge, MA | 573,000 | | Total | 3,073,000 | LEASING ACTIVITY [Leasing Activity](index=17&type=section&id=Leasing%20Activity) In Q1 2024, BXP executed leases totaling 1.43 million square feet, with 1.26 million square feet being second-generation leases, featuring a weighted average lease term of 110 months and a 93-day free rent period, resulting in a 6.78% increase in gross rents and a 9.62% increase in net rents for second-generation leases. Leasing Activity Highlights (Q1 2024) | Metric | Value | | :------------------------------------------------------------------ | :---------- | | Total square feet of leases executed in the quarter (in square feet) | 1,433,155 | | 1st generation leases (SF) (in square feet) | 171,991 | | 2nd generation leases (SF) (in square feet) | 1,261,164 | | Weighted average lease term (months) for commencing 2nd gen leases | 110 | | Weighted average free rent period (days) for commencing 2nd gen leases | 93 | | Total transaction costs per square foot | $79.32 | | Increase (decrease) in gross rents (2nd gen) | 6.78 % | | Increase (decrease) in net rents (2nd gen) | 9.62 % | Leasing Activity by Region (Q1 2024) | Region | Total square feet of leases executed (in square feet) | Incr (decr) in 2nd generation cash rents - total gross | Incr (decr) in 2nd generation cash rents - net | | :-------------- | :-------------------------------------------------- | :----------------------------------------------------- | :--------------------------------------------- | | Boston | 177,707 | 13.78 % | 21.39 % | | Los Angeles | 35,123 | (3.55)% | (5.93)% | | New York | 224,785 | 7.81 % | 10.48 % | | San Francisco | 109,272 | 7.02 % | 9.98 % | | Seattle | 11,383 | (9.25)% | (13.03)% | | Washington, DC | 335,671 | (3.19)% | (4.72)% | | Total / Weighted Average | 893,941 | 6.78 % | 9.62 % | PROPERTY STATISTICS [Portfolio Overview](index=22&type=section&id=Portfolio%20Overview) As of March 31, 2024, BXP's in-service portfolio totals 50.3 million square feet, with Office properties comprising 91.37% of the total, and the majority of BXP's Share of NOI (excluding termination income) originating from CBD properties (89.09%). Rentable Square Footage of In-Service Properties by Unit Type (as of March 31, 2024) | Unit Type | Square Footage (in square feet) | % of Total | | :---------- | :------------------------------ | :--------- | | Office | 45,999,745 | 91.37 % | | Retail | 2,654,041 | 5.27 % | | Residential | 1,361,526 | 2.70 % | | Hotel | 330,000 | 0.66 % | | Total | 50,345,312 | 100.00 % | Percentage of BXP's Share of NOI (excluding termination income) by Location (as of March 31, 2024) | Location | CBD | Suburban | | :-------------- | :-------- | :-------- | | Boston | 29.21 % | 6.68 % | | Los Angeles | 4.23 % | — % | | New York | 22.86 % | 1.72 % | | San Francisco | 16.25 % | 2.32 % | | Seattle | 1.97 % | — % | | Washington, DC | 14.57 % | 0.19 % | | Total | 89.09 % | 10.91 % | [Residential and Hotel Performance](index=23&type=section&id=Residential%20and%20Hotel%20Performance) Residential properties showed mixed performance, with some seeing rental rate increases and others decreases, while hotel performance improved with increased occupancy and RevPAR, despite a slight decrease in ADR. Residential Performance (Q1 2024 vs Q1 2023) | Property (Units) | Metric | 31-Mar-24 (in millions of USD) | 31-Mar-23 (in millions of USD) | % Change | | :-------------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | :-------- | | Hub50House (440) | Average Monthly Rental Rate | $4,366 | $4,168 | 4.75 % | | | Average Physical Occupancy | 94.02 % | 94.24 % | (0.23)% | | Proto Kendall Square (280) | Average Monthly Rental Rate | $3,154 | $3,002 | 5.06 % | | | Average Physical Occupancy | 94.88 % | 95.36 % | (0.50)% | | The Lofts at Atlantic Wharf (86) | Average Monthly Rental Rate | $4,257 | $4,428 | (3.86)% | | | Average Physical Occupancy | 94.96 % | 95.35 % | (0.41)% | | The Skylyne (402) | Average Monthly Rental Rate | $3,478 | $3,445 | 0.96 % | | | Average Physical Occupancy | 87.89 % | 91.46 % | (3.90)% | | Signature at Reston (508) | Average Monthly Rental Rate | $2,774 | $2,677 | 3.62 % | | | Average Physical Occupancy | 95.54 % | 93.70 % | 1.96 % | Hotel Performance (Boston Marriott Cambridge) (Q1 2024 vs Q1 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Mar-23 (in millions of USD) | % Change | | :------------------------- | :----------------------------- | :----------------------------- | :-------- | | Average Occupancy | 71.04 % | 61.30 % | 15.89 % | | Average Daily Rate | $254.86 | $261.52 | (2.55)% | | Revenue Per Available Room | $181.05 | $160.41 | 12.87 % | [In-Service Property Listing](index=25&type=section&id=In-Service%20Property%20Listing) BXP's total in-service properties comprise 176 buildings totaling 50.3 million square feet, with an overall occupancy of 88.2% and leased percentage of 89.9%, with CBD properties generally outperforming suburban properties in occupancy and leased rates. Total In-Service Properties (as of March 31, 2024) | Metric | Value | | :------------------------------------ | :----------- | | Total In-Service Properties (Buildings) | 176 | | Total In-Service Properties (SF) (in square feet) | 50,345,312 | | Occupancy % | 88.2 % | | Leased % | 89.9 % | | Annualized Rental Obligations Per Occupied SF | $80.19 | CBD vs. Suburban In-Service Properties (as of March 31, 2024) | Segment | Number of Buildings | Square Feet (in square feet) | Occupied % | Leased % | Annualized Rental Obligations Per Occupied SF | | :-------- | :------------------ | :--------------------------- | :--------- | :------- | :-------------------------------------------- | | CBD Total | 102 | 41,123,833 | 91.0 % | 92.8 % | $84.97 | | Suburban Total | 74 | 9,221,479 | 76.1 % | 77.2 % | $55.81 | - Boston CBD office properties, particularly in East Cambridge, show strong performance with high occupancy rates (e.g., **145 Broadway at 99.6%**, **125 Broadway at 100%**) and high annualized rental obligations per occupied square foot (e.g., **125 Broadway at $143.66**)[155](index=155&type=chunk) [Top 20 Clients Listing and Portfolio Client Diversification](index=29&type=section&id=Top%2020%20Clients%20Listing%20and%20Portfolio%20Client%20Diversification) BXP's top 20 clients account for 28.60% of BXP's Share of Annualized Rental Obligations and 22.65% of BXP's Share of Square Feet, with Salesforce, Google, and Biogen being the largest clients by annualized rental obligations. Top 20 Clients (as of March 31, 2024) | No. | Client | BXP's Share of Annualized Rental Obligations | Weighted Average Remaining Lease Term (years) | | :-- | :---------------------- | :------------------------------------------- | :-------------------------------------------- | | 1 | Salesforce | 3.30 % | 8.0 | | 2 | Google | 2.83 % | 13.1 | | 3 | Biogen | 2.46 % | 3.3 | | 4 | Akamai Technologies | 2.12 % | 10.6 | | 5 | Kirkland & Ellis | 1.70 % | 13.5 | | ... | ... | ... | ... | | 20 | Aramis (Estee Lauder) | 0.81 % | 16.0 | | Total Top 20 | 28.60 % | | - AstraZeneca is a significant client with **566,000 square feet** at 290 Binney Street, and The Broad Institute occupies **225,000 square feet** at 300 Binney Street[162](index=162&type=chunk) [Occupancy by Location](index=30&type=section&id=Occupancy%20by%20Location) As of March 31, 2024, the total portfolio occupancy was 88.3%, a slight decrease from 89.2% in Q1 2023, with CBD properties generally maintaining higher occupancy rates (91.4%) compared to Suburban properties (75.2%). Occupancy by Location (Q1 2024 vs Q1 2023) | Location | CBD 31-Mar-24 | CBD 31-Mar-23 | Suburban 31-Mar-24 | Suburban 31-Mar-23 | Total 31-Mar-24 | Total 31-Mar-23 | | :-------------- | :------------ | :------------ | :----------------- | :----------------- | :-------------- | :-------------- | | Boston | 95.3 % | 95.0 % | 78.9 % | 83.5 % | 90.4 % | 91.6 % | | Los Angeles | 87.8 % | 87.7 % | — % | — % | 87.8 % | 87.7 % | | New York | 91.5 % | 88.8 % | 71.3 % | 79.7 % | 88.0 % | 87.2 % | | San Francisco | 86.6 % | 89.2 % | 72.4 % | 85.8 % | 83.4 % | 88.4 % | | Seattle | 81.8 % | 87.9 % | — % | — % | 81.8 % | 87.9 % | | Washington, DC | 91.7 % | 89.8 % | 65.8 % | 67.4 % | 90.4 % | 88.7 % | | Total Portfolio | 91.4 % | 90.8 % | 75.2 % | 82.3 % | 88.3 % | 89.2 % | Total In-Service Office Properties Occupancy (Q1 2024 vs Q4 2023) | Location | CBD 31-Mar-24 | CBD 31-Dec-23 | Suburban 31-Mar-24 | Suburban 31-Dec-23 | Total 31-Mar-24 | Total 31-Dec-23 | | :-------------- | :------------ | :------------ | :----------------- | :----------------- | :-------------- | :-------------- | | Total Portfolio | 91.0 % | 91.0 % | 76.1 % | 77.5 % | 88.2 % | 88.4 % | DEBT AND CAPITALIZATION [Capital Structure](index=31&type=section&id=Capital%20Structure) As of March 31, 2024, BXP's Consolidated Debt was $15.36 billion, with Unsecured Senior Notes making up the largest portion at $9.85 billion, resulting in a Consolidated Debt to Consolidated Market Capitalization ratio of 57.17%. Consolidated Debt Breakdown (as of March 31, 2024) | Debt Type | Aggregate Principal (in millions of USD) | | :-------------------------- | :--------------------------------------- | | Mortgage Notes Payable | $4,406,289 | | Unsecured Term Loan | $1,200,000 | | Unsecured Senior Notes | $9,850,000 | | Outstanding Principal Total | $15,456,289 | | Consolidated Debt | $15,362,324 | Capitalization Ratios (as of March 31, 2024) | Metric | Value | | :--------------------------------------------- | :--------- | | Consolidated Debt/Consolidated Market Capitalization | 57.17 % | | BXP's Share of Debt/BXP's Share of Market Capitalization | 57.19 % | - All unsecured senior notes are rated **BBB (negative)** by S&P and **Baa2 (stable)** by Moody's[134](index=134&type=chunk) [Debt Analysis](index=33&type=section&id=Debt%20Analysis) BXP's consolidated debt is 71.56% unsecured and 28.44% secured, with a weighted average GAAP rate of 4.17% and a maturity of 4.6 years, all of which is fixed rate, and the unsecured credit facility has a remaining capacity of $1.81 billion. Consolidated Debt Breakdown by Type (as of March 31, 2024) | Debt Type | % of Total Debt | Stated Rates | Weighted Average GAAP Rates | Maturity (years) | | :--------------- | :-------------- | :----------- | :-------------------------- | :--------------- | | Unsecured Debt | 71.56 % | 4.03 % | 4.15 % | 4.7 | | Secured Debt | 28.44 % | 3.69 % | 4.22 % | 4.2 | | Consolidated Debt | 100.00 % | 3.93 % | 4.17 % | 4.6 | Floating and Fixed Rate Debt Analysis (as of March 31, 2024) | Debt Type | % of Total Debt | Stated Rates | Weighted Average GAAP Rates | Maturity (years) | | :--------------- | :-------------- | :----------- | :-------------------------- | :--------------- | | Floating Rate Debt | — % | — % | — % | — | | Fixed Rate Debt | 100.00 % | 3.93 % | 4.17 % | 4.6 | | Consolidated Debt | 100.00 % | 3.93 % | 4.17 % | 4.6 | - The unsecured credit facility has a remaining capacity of **$1.808 billion** as of March 31, 2024. BPLP exercised a one-year extension option on its unsecured term loan facility, maturing May 16, 2025, and made a **$500.0 million** optional repayment, reducing the outstanding balance to **$700.0 million**[171](index=171&type=chunk)[172](index=172&type=chunk) [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 March 31, 2024, with key ratios well within the specified limits, demonstrating strong financial health. - As of March 31, 2024, BXP's Operating Partnership was in compliance with all senior unsecured debt covenants, including limitations on outstanding debt, secured debt, interest coverage, and maintenance of unencumbered assets[175](index=175&type=chunk) Senior Unsecured Debt Covenant Compliance Ratios (as of March 31, 2024) | Covenant | Test | Actual (Senior Notes Issued On or After Dec 4, 2017) | | :------------------------------------------------ | :------------- | :--------------------------------------------------- | | Total Outstanding Debt/Total Assets | Less than 60% | 44.5 % | | Secured Debt/Total Assets | Less than 50% | 15.7 % | | Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) | Greater than 1.50x | 2.94 | | Unencumbered Assets/Unsecured Debt | Greater than 150% | 258.8 % | [Net Debt to EBITDAre](index=35&type=section&id=Net%20Debt%20to%20EBITDAre) BXP's Share of Net Debt increased to $14.69 billion in Q1 2024 from $14.35 billion in Q4 2023, leading to an increase in the BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) ratio to 7.81 from 7.37, indicating higher leverage. BXP's Share of Net Debt and Net Debt to EBITDAre (Q1 2024 vs Q4 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Dec-23 (in millions of USD) | Change (in millions of USD) | | :------------------------------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------------- | | Consolidated debt | $15,362,324 | $15,856,297 | $(493,973) | | Cash and cash equivalents | $(701,695) | $(1,531,477) | $829,782 | | Net debt | $14,660,629 | $14,324,820 | $335,809 | | BXP's Share of Net Debt | $14,689,415 | $14,353,960 | $335,455 | | BXP's Share of EBITDAre (Annualized) | $1,881,252 | $1,947,004 | $(65,752) | | BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) | 7.81 | 7.37 | 0.44 | [Debt Ratios](index=36&type=section&id=Debt%20Ratios) The Fixed Charge Coverage Ratio improved slightly to 2.51 in Q1 2024 from 2.46 in Q4 2023, while the Interest Coverage Ratio (excluding capitalized interest) remained stable at 2.89, and the Interest Coverage Ratio (including capitalized interest) slightly decreased to 2.67 from 2.70. Fixed Charge Coverage Ratio (Q1 2024 vs Q4 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Dec-23 (in millions of USD) | Change (in millions of USD) | | :-------------------------------------- | :----------------------------- | :----------------------------- | :-------------------------- | | Total Fixed Charges (A) | $180,595 | $185,707 | $(5,112) | | BXP's Share of EBITDAre – cash (B) | $452,490 | $457,117 | $(4,627) | | Fixed Charge Coverage Ratio (B÷A) | 2.51 | 2.46 | 0.05 | Interest Coverage Ratio (Q1 2024 vs Q4 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Dec-23 (in millions of USD) | Change (in millions of USD) | | :---------------------------------------------- | :----------------------------- | :----------------------------- | :-------------------------- | | Adjusted interest expense excluding capitalized interest (A) | $156,621 | $157,706 | $(1,085) | | Adjusted interest expense including capitalized interest (B) | $169,369 | $169,184 | $185 | | BXP's Share of EBITDAre – cash (C) | $452,490 | $457,117 | $(4,627) | | Interest Coverage Ratio (excluding capitalized interest) (C÷A) | 2.89 | 2.90 | (0.01) | | Interest Coverage Ratio (including capitalized interest) (C÷B) | 2.67 | 2.70 | (0.03) | JOINT VENTURES [Consolidated Joint Ventures](index=37&type=section&id=Consolidated%20Joint%20Ventures) BXP's consolidated joint ventures, including 767 Fifth Avenue (The GM Building) and Norges Joint Ventures, reported total rental revenue of $186.7 million and net income of $44.5 million for Q1 2024, with total liabilities of $3.68 billion. Consolidated Joint Ventures - Results of Operations (Q1 2024) | Metric | 767 Fifth Avenue (The GM Building) (in millions of USD) | Norges Joint Ventures (in millions of USD) | Total Consolidated Joint Ventures (in millions of USD) | | :-------------------------- | :------------------------------------------------ | :----------------------------------------- | :----------------------------------------------------- | | Total rental revenue | $79,778 | $106,892 | $186,670 | | Net Operating Income (NOI) | $46,451 | $65,759 | $112,210 | | Net income | $9,702 | $34,776 | $44,478 | | BXP's nominal ownership percentage | 60% | 55% | | | BXP's share of FFO | $16,738 | $33,795 | $50,533 | Consolidated Joint Ventures - Balance Sheet Information (as of March 31, 2024) | Metric | 767 Fifth Avenue (The GM Building) (in millions of USD) | Norges Joint Ventures (in millions of USD) | Total Consolidated Joint Ventures (in millions of USD) | | :-------------------------- | :------------------------------------------------ | :----------------------------------------- | :----------------------------------------------------- | | Total assets | $3,630,588 | $3,467,732 | $7,098,320 | | Mortgage notes payable, net | $2,288,859 | $989,518 | $3,278,377 | | Total liabilities | $2,375,464 | $1,300,453 | $3,675,917 | | Boston Properties, Inc. Equity | $754,676 | $932,933 | $1,687,609 | | Partners' share of consolidated debt | $915,590 | $445,283 | $1,360,873 | [Unconsolidated Joint Ventures](index=39&type=section&id=Unconsolidated%20Joint%20Ventures) BXP's unconsolidated joint ventures reported total rental revenue of $127.8 million and net income of $8.3 million for Q1 2024, with BXP's share of FFO at $17.7 million and total mortgage/construction loans payable amounting to $1.37 billion. Unconsolidated Joint Ventures - Results of Operations (Q1 2024) | Metric | Total Unconsolidated Joint Ventures (in millions of USD) | | :-------------------------- | :----------------------------------------------- | | Total rental revenue | $127,756 | | Net operating income/(loss) | $78,780 | | Net income/(loss) | $8,321 | | BXP's share of FFO | $17,713 | Unconsolidated Joint Ventures - Mortgage/Construction Loans Payable (as of March 31, 2024) | Property | BXP's Nominal Ownership | Mortgage/Construction Loans Payable, Net (in millions of USD) | Maturity Date | Stated Interest Rate | | :-------------------------- | :---------------------- | :---------------------------------------------------------- | :--------------------- | :------------------- | | 100 Causeway Street | 50.00 % | $166,688 | September 5, 2024 | 6.80 % | | 360 Park Avenue South | 71.11 % | $155,940 | December 14, 2024 | 7.83 % | | 200 Fifth Avenue | 26.69 % | $151,190 | November 24, 2028 | 4.34 % | | 7750 Wisconsin Avenue | 50.00 % | $125,568 | April 26, 2025 | 6.67 % | | Hub50House | 50.00 % | $91,940 | June 17, 2032 | 4.43 % | | Dock 72 | 50.00 % | $98,779 | December 18, 2025 | 7.83 % | | Safeco Plaza | 33.67 % | $83,898 | September 1, 2026 | 4.82 % | | Total Mortgage/Construction Loans Payable, Net | | $1,373,986 | | | Unconsolidated Joint Ventures - Debt Analysis (as of March 31, 2024) | Debt Type | % of Total Debt | Stated Rate | Weighted Average GAAP Rate | Maturity (years) | | :--------------- | :-------------- | :---------- | :------------------------- | :--------------- | | Floating Rate Debt | 53.21 % | 7.06 % | 7.61 % | 1.1 | | Fixed Rate Debt | 46.79 % | 4.49 % | 4.87 % | 7.2 | | Total Debt | 100.00 % | 5.86 % | 6.33 % | 4.0 | LEASE EXPIRATION ROLL-OUT [Total In-Service Properties](index=42&type=section&id=Total%20In-Service%20Properties) For all in-service properties, 5.11% of total square footage is subject to lease expiration in 2024, with current annualized rental obligations of $138.0 million, and the largest percentage of square footage expiring is in 2033 (6.99%) and thereafter (26.66%). Total In-Service Properties - Lease Expirations (by Year) | Year of Lease Expiration | Rentable Square Footage Subject to Expiring Leases (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (in millions of USD) | Percentage of Total Square Feet | | :----------------------- | :------------------------------------------------------------------ | :----------------------------------------------------------------------------------- | :------------------------------ | | 2024 | 2,120,327 | 138,024,207 | 5.11 % | | 2025 | 2,716,999 | 199,834,296 | 6.54 % | | 2026 | 2,313,402 | 192,612,001 | 5.57 % | | 2027 | 2,234,136 | 175,812,232 | 5.38 % | | 2028 | 2,762,121 | 237,822,772 | 6.65 % | | 2029 | 3,421,937 | 252,302,609 | 8.24 % | | 2030 | 2,854,338 | 222,438,486 | 6.87 % | | 2031 | 2,014,069 | 172,516,257 | 4.85 % | | 2032 | 2,058,547 | 161,361,684 | 4.96 % | | 2033 | 2,904,106 | 226,288,462 | 6.99 % | | Thereafter | 11,072,657 | 922,980,921 | 26.66 % | [Boston region in-service properties](index=43&type=section&id=Boston%20region%20in-service%20properties) In the Boston region, 417,062 square feet are subject to lease expiration in 2024, with current annualized rental obligations of $25.0 million, and office properties account for the majority of expirations, with the largest quarterly expiration in Q2 2024. Boston Region - Lease Expirations (by Year) | Year of Lease Expiration | Rentable Square Footage Subject to Expiring Leases (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (in millions of USD) | | :----------------------- | :------------------------------------------------------------------ | :----------------------------------------------------------------------------------- | | 2024 | 417,062 | 24,965,442 | | 2025 | 953,212 | 60,777,300 | | 2026 | 803,304 | 59,077,707 | | ... | ... | ... | | Thereafter | 4,040,728 | 334,739,024 | Boston Region - Quarterly Lease Expirations (Q1-Q4 2024) | Quarter | Office SF (in square feet) | Retail SF (in square feet) | Total SF (in square feet) | | :-------- | :------------------------- | :------------------------- | :------------------------ | | Q1 2024 | 41,413 | 3,233 | 44,646 | | Q2 2024 | 182,925 | 7,966 | 190,891 | | Q3 2024 | 72,905 | 300 | 73,205 | | Q4 2024 | 93,433 | 14,887 | 108,320 | | Total 2024 | 390,676 | 26,386 | 417,062 | [Los Angeles region in-service properties](index=45&type=section&id=Los%20Angeles%20region%20in-service%20properties) In the Los Angeles region, 261,675 square feet are subject to lease expiration in 2024, with current annualized rental obligations of $18.0 million, and office properties dominate expirations, with the largest quarterly expiration in Q4 2024. Los Angeles Region - Lease Expirations (by Year) | Year of Lease Expiration | Rentable Square Footage Subject to Expiring Leases (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (in millions of USD) | | :----------------------- | :------------------------------------------------------------------ | :----------------------------------------------------------------------------------- | | 2024 | 261,675 | 17,982,398 | | 2025 | 45,251 | 3,623,426 | | ... | ... | ... | | Thereafter | 509,465 | 36,960,616 | Los Angeles Region - Quarterly Lease Expirations (Q1-Q4 2024) | Quarter | Office SF (in square feet) | Retail SF (in square feet) | Total SF (in square feet) | | :-------- | :------------------------- | :------------------------- | :------------------------ | | Q1 2024 | — | 9,367 | 9,367 | | Q2 2024 | 17,709 | — | 17,709 | | Q3 2024 | 25,347 | 1,000 | 26,347 | | Q4 2024 | 208,252 | — | 208,252 | | Total 2024 | 251,308 | 10,367 | 261,675 | [New York region in-service properties](index=47&type=section&id=New%20York%20region%20in-service%20properties) In the New York region, 498,384 square feet are subject to lease expiration in 2024, with current annualized rental obligations of $34.7 million, and office properties account for the majority of expirations, with the largest quarterly expiration in Q2 2024. New York Region - Lease Expirations (by Year) | Year of Lease Expiration | Rentable Square Footage Subject to Expiring Leases (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (in millions of USD) | | :----------------------- | :------------------------------------------------------------------ | :----------------------------------------------------------------------------------- | | 2024 | 498,384 | 34,660,939 | | 2025 | 772,813 | 64,599,504 | | ... | ... | ... | | Thereafter | 3,303,437 | 349,832,347 | New York Region - Quarterly Lease Expirations (Q1-Q4 2024) | Quarter | Office SF (in square feet) | Retail SF (in square feet) | Total SF (in square feet) | | :-------- | :------------------------- | :------------------------- | :------------------------ | | Q1 2024 | 55,400 | — | 55,400 | | Q2 2024 | 202,243 | 10,833 | 213,076 | | Q3 2024 | 167,547 | — | 167,547 | | Q4 2024 | 62,361 | — | 62,361 | | Total 2024 | 487,551 | 10,833 | 498,384 | [San Francisco region in-service properties](index=49&type=section&id=San%20Francisco%20region%20in-service%20properties) In the San Francisco region, 520,795 square feet are subject to lease expiration in 2024, with current annualized rental obligations of $39.1 million, and office properties account for the majority of expirations, with the largest quarterly expiration in Q2 2024. San Francisco Region - Lease Expirations (by Year) | Year of Lease Expiration | Rentable Square Footage Subject to Expiring Leases (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (in millions of USD) | | :----------------------- | :------------------------------------------------------------------ | :----------------------------------------------------------------------------------- | | 2024 | 520,795 | 39,101,922 | | 2025 | 650,171 | 51,477,719 | | ... | ... | ... | | Thereafter | 306,210 | 26,899,495 | San Francisco Region - Quarterly Lease Expirations (Q1-Q4 2024) | Quarter | Office SF (in square feet) | Retail SF (in square feet) | Total SF (in square feet) | | :-------- | :------------------------- | :------------------------- | :------------------------ | | Q1 2024 | 6,228 | — | 6,228 | | Q2 2024 | 280,187 | 1,821 | 282,008 | | Q3 2024 | 36,300 | 484 | 36,784 | | Q4 2024 | 195,775 | — | 195,775 | | Total 2024 | 518,490 | 2,305 | 520,795 | [Seattle region in-service properties](index=51&type=section&id=Seattle%20region%20in-service%20properties) In the Seattle region, 22,430 square feet are subject to lease expiration in 2024, with current annualized rental obligations of $1.12 million, and office properties account for all expirations in 2024, with the largest quarterly expiration in Q1. Seattle Region - Lease Expirations (by Year) | Year of Lease Expiration | Rentable Square Footage Subject to Expiring Leases (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (in millions of USD) | | :----------------------- | :------------------------------------------------------------------ | :----------------------------------------------------------------------------------- | | 2024 | 22,430 | 1,121,532 | | 2025 | 16,876 | 968,261 | | ... | ... | ... | | Thereafter | 13,646 | 695,952 | Seattle Region - Quarterly Lease Expirations (Q1-Q4 2024) | Quarter | Office SF (in square feet) | Retail SF (in square feet) | Total SF (in square feet) | | :-------- | :------------------------- | :------------------------- | :------------------------ | | Q1 2024 | 22,104 | — | 22,104 | | Q2 2024 | — | — | — | | Q3 2024 | — | — | — | | Q4 2024 | 326 | — | 326 | | Total 2024 | 22,430 | — | 22,430 | [Washington, DC region in-service properties](index=53&type=section&id=Washington%2C%20DC%20region%20in-service%20properties) In the Washington, DC region, 399,981 square feet are subject to lease expiration in 2024, with current annualized rental obligations of $20.2 million, and office properties account for the majority of expirations, with the largest quarterly expiration in Q4. Washington, DC Region - Lease Expirations (by Year) | Year of Lease Expiration | Rentable Square Footage Subject to Expiring Leases (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (in millions of USD) | | :----------------------- | :------------------------------------------------------------------ | :----------------------------------------------------------------------------------- | | 2024 | 399,981 | 20,191,974 | | 2025 | 278,676 | 18,388,086 | | ... | ... | ... | | Thereafter | 2,899,171 | 173,853,487 | Washington, DC Region - Quarterly Lease Expirations (Q1-Q4 2024) | Quarter | Office SF (in square feet) | Retail SF (in square feet) | Total SF (in square feet) | | :-------- | :------------------------- | :------------------------- | :------------------------ | | Q1 2024 | 7,465 | — | 7,465 | | Q2 2024 | 36,186 | 4,466 | 40,652 | | Q3 2024 | 72,584 | 1,702 | 74,286 | | Q4 2024 | 274,912 | 2,666 | 277,578 | | Total 2024 | 391,147 | 8,834 | 399,981 | [CBD properties](index=55&type=section&id=CBD%20properties) For CBD properties, 126,997 square feet are subject to lease expiration in 2024, with current annualized rental obligations of $10.0 million, and the largest percentage of square footage expiring is thereafter (3,589,420 SF). CBD Properties - Lease Expirations (by Year) | Year of Lease Expiration | Rentable Square Footage Subject to Expiring Leases (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (in millions of USD) | | :----------------------- | :------------------------------------------------------------------ | :----------------------------------------------------------------------------------- | | 2024 | 126,997 | 10,011,090 | | 2025 | 291,891 | 24,244,706 | | ... | ... | ... | | Thereafter | 3,589,420 | 307,353,602 | CBD Properties - Lease Expirations by Region (2024) | Region | Rentable Square Footage Subject to Expiring Leases (2024) (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (2024) (in millions of USD) | | :-------------- | :----------------------------------------------------------------------- | :------------------------------------------------------------------------------------------ | | Boston | 290,065 | 14,954,352 | | Los Angeles | 261,675 | 17,982,397 | | New York | 341,772 | 28,554,913 | | San Francisco | 423,080 | 33,956,396 | | Seattle, WA | 22,430 | 1,121,532 | | Washington, DC | 358,733 | 18,503,269 | [Suburban properties](index=57&type=section&id=Suburban%20properties) For Suburban properties, 290,065 square feet are subject to lease expiration in 2024, with current annualized rental obligations of $14.95 million, and the largest percentage of square footage expiring is thereafter (451,309 SF). Suburban Properties - Lease Expirations (by Year) | Year of Lease Expiration | Rentable Square Footage Subject to Expiring Leases (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (in millions of USD) | | :----------------------- | :------------------------------------------------------------------ | :----------------------------------------------------------------------------------- | | 2024 | 290,065 | 14,954,352 | | 2025 | 661,321 | 36,532,594 | | ... | ... | ... | | Thereafter | 451,309 | 27,385,422 | Suburban Properties - Lease Expirations by Region (2024) | Region | Rentable Square Footage Subject to Expiring Leases (2024) (in square feet) | Current Annualized Rental Obligations Under Expiring Leases ($) (2024) (in millions of USD) | | :-------------- | :----------------------------------------------------------------------- | :------------------------------------------------------------------------------------------ | | Boston | 126,997 | 10,011,090 | | Los Angeles | 10,367 | 326,889 | | New York | 156,612 | 6,106,026 | | San Francisco | 97,715 | 5,145,526 | | Washington, DC | 41,248 | 1,688,705 | RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS [Research Coverage](index=59&type=section&id=Research%20Coverage) This section lists equity and debt research firms, along with rating agencies, that cover Boston Properties, Inc., clarifying that analyst opinions do not represent the company's views and are for informational purposes only. - The section lists equity analysts from firms like Bank of America Merrill Lynch, Barclays, Citi, Goldman Sachs, J.P. Morgan Securities, and others, who publish research on BXP[293](index=293&type=chunk) - Debt research coverage is provided by firms such as Barclays, J.P. Morgan Securities, US Bank, and Wells Fargo, while rating agencies include Moody's Investors Service and Standard & Poor's[293](index=293&type=chunk) - BXP explicitly states that analyst opinions, estimates, or forecasts do not represent the company's views and are not endorsed by management[294](index=294&type=chunk) [Definitions](index=60&type=section&id=Definitions) This section provides definitions for key non-GAAP financial measures and other terms used in the supplemental report, such as Annualized Rental Obligations, EBITDAre, FFO, FAD, and NOI, and explains the concept of "BXP's Share" to reflect the company's true economic interest in joint ventures. - EBITDAre is a non-GAAP measure calculated as net income (loss) attributable to Boston Properties, Inc. plus adjustments for noncontrolling interests, interest expense, depreciation and amortization, impairment loss, and share of EBITDAre from unconsolidated joint ventures, less gains/losses on sales of real estate[4](index=4&type=chunk) - Funds from Operations (FFO) is a non-GAAP measure adjusting net income for gains/losses from property sales, impairment losses on depreciable real estate, and real estate-related depreciation and amortization, aiming to improve understanding of REIT operating results[325](index=325&type=chunk) - Funds Available for Distribution (FAD) is a non-GAAP measure calculated by adding lease transaction costs, non-real estate depreciation/amortization, non-cash gains/losses from debt extinguishments, stock-based compensation, and unearned capitalized fees to FFO, while eliminating certain non-cash revenues and subtracting maintenance capital expenditures and tenant improvements[6](index=6&type=chunk) - Net Operating Income (NOI) is a non-GAAP measure equal to net income plus various expenses (e.g., interest, depreciation, G&A) and less certain income items (e.g., development revenue, JV income), used to reflect property-level operating performance on an unleveraged basis[329](index=329&type=chunk) - The Company presents 'BXP's Share' of certain measures to provide investors with useful information regarding its financial condition and/or results of operations, reflecting its true economic interest in joint ventures, which may be consolidated or unconsolidated under GAAP[36](index=36&type=chunk)[297](index=297&type=chunk) [Reconciliations](index=64&type=section&id=Reconciliations) This section provides detailed quantitative reconciliations for various non-GAAP financial measures to their most directly comparable GAAP measures, including BXP's Share of revenue components, partners' share of EBITDAre, and consolidated income statement prior year data. BXP's Share of Revenue Components (Q1 2024 vs Q4 2023) | Metric | 31-Mar-24 (in millions of USD) | 31-Dec-23 (in millions of USD) | | :---------------------------------------------- | :----------------------------- | :----------------------------- | | BXP's Share of revenue | $816,045 | $811,157 | | BXP's Share of straight-line rent | $39,484 | $28,765 | | BXP's Share of fair value lease revenue | $2,392 | $3,441 | | BXP's Share of termination income | $4,692 | $10,350 | | BXP's Share of parking and other revenue | $31,418 | $32,252 | | BXP's Share of hedge amortization, net of costs | $2,030 | $2,030 | | BXP's Share of straight-line ground rent expense adjustment | $659 | $174 | | BXP's Share of depreciation and amortization | $220,244 | $216,915 | | BXP's Share of lease transaction costs that qualify as rent inducements | $5,325 | $1,314 | | BXP's Share of 2nd generation tenant improvements and leasing commissions | $84,531 | $53,709 | Partners' Share of EBITDAre (Q1 2024) | Metric | 767 Fifth Avenue (The GM Building) (in millions of USD) | Norges Joint Ventures (in millions of USD) | Total Consolidated Joint Ventures (in millions of USD) | | :---------------------------------------------- | :------------------------------------------------ | :----------------------------------------- | :----------------------------------------------------- | | Partners' NCI | $2,849 | $14,372 | $17,221 | | Partners' share of interest expense after BXP's basis differential | $8,468 | $3,415 | $11,883 | | Partners' share of depreciation and amortization expense after BXP's basis differential | $7,205 | $11,490 | $18,695 | | Partners' share of EBITDAre | $18,522 | $29,277 | $47,799 | Consolidated Income Statement (Q1 2023 vs Q4 2022) | Metric | 31-Mar-23 (in millions of USD) | 31-Dec-22 (in millions of USD) | | :---------------------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $803,200 | $789,824 | | Total expenses | $568,661 | $529,246 | | Net income | $105,628 | $155,723 | | Net income attributable to Boston Properties, Inc. | $77,890 | $121,790 | | EPS - basic | $0.50 | $0.78 | | EPS - diluted | $0.50 | $0.78 |