Boston Properties(BXP) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for Q1 2025 was $865,215, an increase of 3.5% from $839,439 in Q1 2024[28] - Net income attributable to BXP, Inc. for Q1 2025 was $61,177, down 23.6% from $79,883 in Q1 2024[28] - Basic earnings per common share attributable to BXP, Inc. decreased to $0.39 in Q1 2025 from $0.51 in Q1 2024[28] - Comprehensive income attributable to BXP, Inc. for Q1 2025 was $51,870, down from $97,410 in Q1 2024[30] - Net income for Q1 2025 was $86,905, a decrease from $106,604 in Q1 2024, representing a decline of approximately 18.4%[36] - The Company reported a net income attributable to BXP, Inc. of $61,177 for Q1 2025, down 23.6% from $79,883 in Q1 2024[149] - The Company’s share of Net Operating Income (NOI) for Q1 2025 was $494,778, a decrease of 0.4% from $497,680 in Q1 2024[149] - The net operating income from unconsolidated joint ventures was $32,682 for Q1 2025, down from $35,430 in Q1 2024[149] Assets and Liabilities - Total assets as of March 31, 2025, were $25,436,521, a decrease from $26,084,980 as of December 31, 2024[25] - Total liabilities decreased to $17,577,740 as of March 31, 2025, from $18,137,324 as of December 31, 2024[25] - Total stockholders' equity attributable to BXP, Inc. decreased to $5,319,942 as of March 31, 2025, from $5,413,306 as of December 31, 2024[25] - The total equity as of March 31, 2025, was $7,849,841, a decrease from $8,183,981 as of December 31, 2023[34] - Total assets decreased to $25,202,134 as of March 31, 2025, from $25,848,890 at December 31, 2024, a decline of 2.5%[42] - Total liabilities decreased to $17,577,740 as of March 31, 2025, from $18,137,324 at December 31, 2024, a reduction of 3.1%[42] Cash Flow and Investments - Cash and cash equivalents decreased significantly to $398,126 as of March 31, 2025, from $1,254,882 as of December 31, 2024[23] - Total cash provided by operating activities increased to $210,036 in Q1 2025 from $197,595 in Q1 2024, reflecting a growth of about 6.9%[36] - Cash used in investing activities was $309,143 in Q1 2025, compared to $286,619 in Q1 2024, indicating an increase of approximately 7.8%[38] - Cash and cash equivalents at the end of Q1 2025 were $479,207, down from $766,634 at the end of Q1 2024, a decrease of about 37.5%[38] - Total adjustments to reconcile net income to net cash provided by operating activities amounted to $123,131 in Q1 2025, compared to $90,991 in Q1 2024, an increase of approximately 35.2%[36] Expenses - Operating expenses for Q1 2025 totaled $616,801, an increase from $593,712 in Q1 2024[28] - Interest expense for Q1 2025 was $163,444, slightly up from $161,891 in Q1 2024[28] - The company reported a depreciation and amortization expense of $220,107 in Q1 2025, compared to $218,716 in Q1 2024, showing a marginal increase[36] - General and administrative expense for Q1 2025 was $52,284, compared to $50,018 in Q1 2024[149] Leasing and Development - The Company recognized lease revenue of $811.1 million for the three months ended March 31, 2025, compared to $788.6 million for the same period in 2024, reflecting an increase of approximately 2.7%[83] - Fixed contractual lease payments amounted to $666.2 million in Q1 2025, up from $648.9 million in Q1 2024, representing a growth of about 2.0%[83] - In Q1 2025, the company executed 91 leases totaling over 1.1 million square feet, a 25% increase in leased square footage compared to Q1 2024[188] - The development/redevelopment pipeline consists of nine properties totaling approximately 3.0 million net rentable square feet, with an estimated total cost of approximately $2.4 billion[194] Debt and Financing - Borrowings on unsecured term loans amounted to $700,000 in Q1 2025, with an equal repayment of $700,000 during the same period[38] - The company experienced a net cash used in financing activities of $756,882 in Q1 2025, which is consistent with $756,909 in Q1 2024[38] - BPLP has a total principal amount of $9.85 billion in unsecured senior notes outstanding[98] - BPLP repaid $850 million of its 3.200% senior notes due January 15, 2025, at a repayment price of approximately $863.6 million, including accrued interest[100] - The 2025 Credit Facility allows for aggregate borrowings of up to $2.95 billion, with an increased revolving line of credit from $2 billion to $2.25 billion[101] Market and Economic Conditions - The first quarter of 2025 saw a decline in U.S. GDP by 0.3%, raising concerns about potential recession and its impact on leasing demand[180] - Despite economic uncertainties, BXP's leasing pipeline remains active, with only one prospective user (8,000 square feet) opting not to proceed due to market conditions[181] - Approximately 62% of BXP's annualized rental obligations come from New York and Boston, where low availability is driving positive client behavior[185] Legal and Compliance - The Company is involved in ongoing litigation regarding the Additional Fee and Final Fee, with potential liabilities claimed by the seller amounting to $31 million plus interest[125] - The Company intends to defend against claims from Brammer Bio MA, LLC, which could result in delays and financial penalties if injunctive relief is granted[130] - BPLP is in compliance with all financial restrictions and requirements under the 2025 Credit Facility as of March 31, 2025[107]