Boston Properties(BXP) - 2025 Q2 - Quarterly Results

Overview Company Profile BXP, Inc. is the largest publicly traded developer, owner, and manager of premier workplaces in six dynamic gateway markets in the US, operating as a REIT - BXP is the largest publicly traded developer, owner, and manager of premier workplaces in the US, concentrated in Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC[3] - As of June 30, 2025, BXP's portfolio totals 53.7 million square feet and 186 properties, including 10 under construction/redevelopment, comprising 162 office, 14 retail, 9 residential, and 1 hotel property[3] - BXP has earned a thirteenth consecutive GRESB "Green Star" recognition and the highest GRESB 5-star Rating, recognized by TIME Magazine as one of the world's most sustainable companies[3] Forward-Looking Statements This section outlines the nature of forward-looking statements, cautioning investors about inherent risks and uncertainties that could cause actual results to differ materially from projections - Forward-looking statements are based on current plans and assumptions, but actual results may differ due to known and unknown risks, uncertainties, and other factors beyond BXP's control[4] - Key risk factors include adverse changes in economic and capital market conditions (inflation, interest rates, supply chain), general real estate industry risks (lease terms, client preferences, competition), political conditions, geopolitical conflicts, and financing costs[4] Non-GAAP Financial Measures The report includes non-GAAP financial measures, reconciled to GAAP, to provide additional insights into the company's financial condition and operations - Non-GAAP financial measures are included with GAAP reconciliations to provide useful information on BXP's financial condition and operations[5] - "BXP's Share" is a non-GAAP measure that adjusts consolidated amounts for unconsolidated and consolidated joint venture interests, aiming to reflect the company's true economic interest[6] - Investors are cautioned that "BXP's Share" should not substitute GAAP financial information but rather supplement it, as ownership percentages may not fully depict all legal and economic implications of joint ventures[6] General Information & Strategy This section provides corporate contact details, a snapshot of key financial and operational metrics, and outlines BXP's core business strategy focused on maximizing return on investment Snapshot (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Fiscal Year-End | December 31 | | Total Properties | 186 | | Total Square Feet | 53.7 million | | Common shares outstanding (as-converted) | 176.8 million | | Closing Price (end of quarter) | $67.47 per share | | Dividend - Quarter/Annualized | $0.98/$3.92 per share | | Dividend Yield | 5.8% | | Consolidated Market Capitalization | $27.7 billion | | BXP's Share of Market Capitalization | $27.8 billion | | Unsecured Senior Debt Ratings | BBB (S&P); Baa2 (Moody's) | - BXP's primary business objective is to maximize return on investment by embracing leadership in premier workplaces, focusing on dynamic gateway markets (Boston, LA, NY, SF, Seattle, DC), and investing in high-quality buildings with unique amenities[14][16] - Strategic tenets include maintaining full-service real estate capabilities, pursuing attractive asset class adjacencies (life sciences, residential), leading in sustainability innovation, ensuring a strong balance sheet, and fostering a culture of integrity and excellence[16] Financial Information Guidance and Assumptions BXP provides guidance for Q3 and full-year 2025 diluted EPS and FFO per share, based on current market conditions and operational assumptions Projected EPS and FFO per share (Q3 2025 & Full Year 2025) | Metric | Q3 2025 Low | Q3 2025 High | Full Year 2025 Low | Full Year 2025 High | | :--- | :--- | :--- | :--- | :--- | | Projected EPS (diluted) | $0.41 | $0.43 | $1.74 | $1.82 | | Projected FFO per share (diluted) | $1.69 | $1.71 | $6.84 | $6.92 | Full Year 2025 Assumptions | Metric | Low | High | | :--- | :--- | :--- | | Average In-service portfolio occupancy | 86.50 % | 88.00 % | | Change in BXP's Share of Same Property net operating income (excluding termination income) | — % | 0.50 % | | Change in BXP's Share of Same Property net operating income - cash (excluding termination income) | 1.00 % | 1.50 % | | BXP's Share of straight-line rent and fair value lease revenue (non-cash revenue) | $100,000 | $115,000 | | Consolidated net interest expense | $(625,000) | $(620,000) | Financial Highlights For the three months ended June 30, 2025, BXP reported increased net income and FFO per share compared to the previous quarter, with slight revenue increase and stable key ratios Financial Highlights (Three Months Ended) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Net income attributable to BXP, Inc. | $88,977 | $61,177 | +45.45% | | Net income attributable to BXP, Inc. per share - diluted | $0.56 | $0.39 | +43.59% | | FFO attributable to BXP, Inc. | $271,652 | $260,591 | +4.24% | | Diluted FFO per share | $1.71 | $1.64 | +4.27% | | Revenue | $868,457 | $865,215 | +0.37% | | BXP's Share of revenue | $835,667 | $836,192 | -0.06% | | Interest Coverage Ratio (excluding capitalized interest) | 2.85 | 2.83 | +0.71% | | Fixed Charge Coverage Ratio | 2.23 | 2.38 | -6.30% | | BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) | 8.18 | 8.33 | -1.80% | | Occupancy % of In-Service Properties | 86.4 % | 86.9 % | -0.50 pp | | Leased % of In-Service Properties | 89.1 % | 89.4 % | -0.30 pp | Consolidated Balance Sheets As of June 30, 2025, BXP's total assets increased slightly to $25.62 billion, driven by real estate and construction in progress, while total liabilities also increased to $17.77 billion Consolidated Balance Sheet Highlights (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Total assets | $25,621,190 | $25,436,521 | +0.72% | | Total real estate | $21,262,840 | $21,119,163 | +0.68% | | Construction in progress | $1,047,687 | $907,989 | +15.39% | | Cash and cash equivalents | $446,953 | $398,126 | +12.26% | | Total liabilities | $17,766,779 | $17,577,740 | +1.08% | | Unsecured commercial paper | $750,000 | $500,000 | +50.00% | | Total equity | $7,847,430 | $7,849,841 | -0.03% | Consolidated Income Statements BXP's net income increased significantly to $88.98 million in Q2 2025, primarily due to a gain on sale of real estate and increased hotel revenue Consolidated Income Statement Highlights (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Total revenue | $868,457 | $865,215 | +0.37% | | Lease revenue | $805,935 | $811,102 | -0.64% | | Hotel revenue | $14,773 | $9,597 | +53.93% | | Total expenses | $612,223 | $616,801 | -0.74% | | General and administrative | $42,516 | $52,284 | -18.70% | | Gain on sale of real estate | $18,390 | $0 | N/A | | Net income attributable to BXP, Inc. | $88,977 | $61,177 | +45.45% | Funds From Operations (FFO) FFO attributable to BXP, Inc. increased to $271.65 million ($1.71 per diluted share) in Q2 2025, driven by higher net income and adjustments for depreciation and amortization FFO Attributable to BXP, Inc. (in thousands, except per share) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Net income attributable to BXP, Inc. | $88,977 | $61,177 | +45.45% | | FFO attributable to BXP, Inc. | $271,652 | $260,591 | +4.24% | | Diluted FFO per share | $1.71 | $1.64 | +4.27% | | BXP, Inc.'s percentage share of Basic FFO | 90.02 % | 90.01 % | +0.01 pp | Funds Available for Distribution (FAD) Funds Available for Distribution (FAD) decreased to $203.59 million in Q2 2025, leading to an increase in the FAD Payout Ratio, mainly due to higher tenant improvements and capital expenditures Funds Available for Distribution (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Basic FFO | $301,769 | $289,513 | +4.23% | | Funds available for distribution (FAD) | $203,592 | $213,885 | -4.81% | | Distributions to common shareholders and unitholders | $173,357 | $173,306 | +0.03% | | FAD Payout Ratio | 85.15 % | 81.03 % | +4.12 pp | - The decrease in FAD was primarily influenced by higher BXP's Share of 2nd generation tenant improvements and leasing commissions ($61.42 million vs $58.95 million QoQ) and maintenance capital expenditures ($30.21 million vs $18.31 million QoQ)[30] Net Operating Income (NOI) BXP's Share of NOI (excluding termination income) slightly increased to $492.78 million in Q2 2025 from $492.11 million in Q2 2024 Net Operating Income (in thousands) | Metric | 30-Jun-25 | 30-Jun-24 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Operating Income (NOI) | $514,080 | $508,717 | +1.05% | | BXP's Share of NOI | $493,547 | $492,913 | +0.13% | | BXP's Share of NOI (excluding termination income) | $492,784 | $492,112 | +0.14% | Same Property Net Operating Income (NOI) by Reportable Segment BXP's share of Same Property NOI (excluding termination income) decreased by 0.2% YoY, but BXP's share of Same Property NOI - cash increased by 1.7% YoY, indicating stronger cash performance Same Property NOI (excluding termination income) (in thousands) | Metric | 30-Jun-25 | 30-Jun-24 | Change (YoY) | | :--- | :--- | :--- | :--- | | Consolidated Total NOI (excluding termination income) | $499,975 | $500,675 | -0.1% | | Consolidated Total NOI - cash (excluding termination income) | $481,173 | $477,223 | +0.8% | | BXP's Share of Same Property NOI (excluding termination income) | $484,189 | $485,123 | -0.2% | | BXP's Share of Same Property NOI - cash (excluding termination income) | $467,927 | $459,928 | +1.7% | - Office rental revenue (excluding termination income) for consolidated properties increased by 1.0% YoY, while operating expenses and real estate taxes increased by 2.8% YoY[35] - BXP's share of unconsolidated joint ventures showed a 2.4% YoY increase in rental revenue (excluding termination income) but a 1.5% YoY decrease in NOI (excluding termination income)[35] Capital Expenditures, Tenant Improvement Costs and Leasing Commissions BXP's Share of Capital Expenditures increased significantly to $50.09 million in Q2 2025, driven by higher maintenance and planned capital expenditures BXP's Share of Capital Expenditures (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Maintenance capital expenditures | $32,934 | $20,186 | +63.16% | | Planned capital expenditures associated with acquisition properties | $5,977 | $1,349 | +343.07% | | Repositioning capital expenditures | $13,150 | $19,495 | -32.55% | | Hotel improvements, equipment upgrades and replacements | $859 | $159 | +440.25% | | BXP's Share of Capital Expenditures | $50,089 | $39,494 | +26.82% | 2nd Generation Tenant Improvements and Leasing Commissions | Metric | 30-Jun-25 | 31-Mar-25 | | :--- | :--- | :--- | | Square feet | 852,284 | 916,029 | | Tenant improvements and lease commissions PSF | $85.84 | $74.01 | Acquisitions and Dispositions In the first half of 2025, BXP acquired a 19.46% ownership interest in 290 Coles Street for $20 million and disposed of 17 Hartwell Avenue for $21.84 million, recognizing an $18.39 million gain - BXP acquired a 19.46% ownership in 290 Coles Street (560,000 SF, 670 units) in Jersey City, NJ, on March 5, 2025, with an initial investment of $20 million and future equity commitment of $68.7 million[40][41] - BXP disposed of 17 Hartwell Avenue (30,000 SF) in Lexington, MA, on June 27, 2025, for $21.84 million in gross sales price, resulting in a book gain of $18.39 million; the property was sold to a joint venture where BXP holds a 20% ownership[41] Development Activity Construction in Progress As of June 30, 2025, BXP has 3.29 million square feet across 10 properties under construction, with an additional 930,000 square feet commencing after June 30, 2025 Properties Under Construction at June 30, 2025 (BXP's Share) | Property Type | Square Feet | Estimated Total Investment | BXP's Share of Future Equity Requirement | Percentage Leased | Percentage placed in service | | :--- | :--- | :--- | :--- | :--- | :--- | | Office | 1,019,000 | $867,600 | $360,437 | 64 % | 19 % | | Lab/Life Sciences | 900,000 | $675,100 | $233,867 | 71 % | 10 % | | Residential | 1,342,100 | $722,400 | $446,585 | — % | — % | | Retail | 30,000 | $26,600 | $737 | 45 % | — % | | Total (A) | 3,291,100 | $2,291,700 | $1,041,626 | 67 % | 14 % | - Construction commenced after June 30, 2025, includes 343 Madison Avenue (Office, New York, NY) with 930,000 square feet and an estimated total investment of $1.97 billion, where BXP is acquiring 100% interest[42][43] Land Parcels and Purchase Options BXP holds owned land parcels and properties for redevelopment totaling approximately 16.58 million developable square feet, with additional land purchase options for 3.07 million developable square feet Owned Land Parcels and Properties Held for Redevelopment (as of June 30, 2025) | Location | Approximate Developable Square Feet | | :--- | :--- | | San Jose, CA | 2,830,000 | | Reston, VA | 2,490,000 | | New York, NY (25% ownership) | 2,000,000 | | Princeton, NJ | 1,723,000 | | San Jose, CA (55% ownership) | 1,088,000 | | Waltham, MA | 899,000 | | Total | 16,584,000 | Value Creation Pipeline - Land Purchase Options (as of June 30, 2025) | Location | Approximate Developable Square Feet | | :--- | :--- | | Boston, MA | 1,300,000 | | Waltham, MA | 1,200,000 | | Cambridge, MA | 573,000 | | Total | 3,073,000 | Leasing Activity Leasing Activity Overview For the first half of 2025, BXP saw 923,618 square feet of leases commence, with second-generation leases showing a 9.67% decrease in gross rents and a 14.27% decrease in net rents Leasing Activity (January 1, 2025 - June 30, 2025) | Metric | Value | | :--- | :--- | | Vacant space available at the beginning of the period | 6,348,177 SF | | Total leases commenced during the period | 923,618 SF | | Vacant space available for lease at the end of the period | 6,559,755 SF | | Net (increase)/decrease in available space | 211,578 SF (increase) | Second Generation Leasing Information (Q2 2025) | Metric | Value | | :--- | :--- | | Leases commencing during the period | 852,284 SF | | Weighted average lease term | 80 months | | Weighted average free rent period | 160 days | | Total transaction costs per square foot | $85.84 | | Increase (decrease) in gross rents | (9.67)% | | Increase (decrease) in net rents | (14.27)% | - Los Angeles, New York, San Francisco, and Washington, DC, all experienced significant decreases in second-generation cash rents, with Los Angeles showing the largest decline at (33.56)% gross and (48.64)% net[48] Property Statistics Portfolio Overview As of June 30, 2025, BXP's in-service portfolio totals 50.41 million rentable square feet, predominantly office, with Boston contributing the largest share of both rentable square footage and NOI Rentable Square Footage of In-Service Properties by Location and Unit Type (in thousands) | Location | Office | Retail | Residential | Hotel | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Boston | 14,481 | 1,146 | 550 | 330 | 16,507 | | Los Angeles | 2,184 | 124 | — | — | 2,307 | | New York | 12,111 | 478 | — | — | 12,589 | | San Francisco | 7,240 | 350 | 318 | — | 7,908 | | Seattle | 1,504 | 13 | — | — | 1,517 | | Washington, DC | 8,048 | 623 | 910 | — | 9,581 | | Total | 45,568 | 2,733 | 1,779 | 330 | 50,409 | | % of Total | 90.40 % | 5.42 % | 3.53 % | 0.65 % | 100.00 % | BXP's Share of Rental Revenue by Unit Type (in thousands) | Unit Type | BXP's Share of Rental Revenue | % of Total | | :--- | :--- | :--- | | Office | $735,674 | 89.46 % | | Retail | $56,769 | 6.90 % | | Residential | $15,338 | 1.86 % | | Hotel | $14,671 | 1.78 % | | Total | $822,452 | 100.00 % | Percentage of BXP's Share of NOI (excluding termination income) by Location | Location | CBD | Suburban | Total | | :--- | :--- | :--- | :--- | | Boston | 33.27 % | 6.11 % | 39.38 % | | New York | 21.86 % | 1.57 % | 23.43 % | | San Francisco | 14.57 % | 1.65 % | 16.22 % | | Washington, DC | 14.93 % | 0.13 % | 15.06 % | | Total | 90.54 % | 9.46 % | 100.00 % | Residential and Hotel Performance Residential NOI decreased slightly QoQ, while Hotel NOI significantly increased, with Boston residential properties showing YoY improvements in rental rates and occupancy Residential and Hotel Net Operating Income (in thousands) | Metric | 30-Jun-25 (Residential) | 31-Mar-25 (Residential) | 30-Jun-25 (Hotel) | 31-Mar-25 (Hotel) | | :--- | :--- | :--- | :--- | :--- | | Rental Revenue | $12,532 | $12,348 | $14,773 | $9,597 | | Net Operating Income (NOI) | $5,954 | $6,451 | $5,408 | $2,032 | | BXP's Share of NOI | $8,102 | $8,437 | $5,408 | $2,032 | Residential Rental Rates and Occupancy (YoY Change) | Location | Metric | 30-Jun-25 | 30-Jun-24 | Percent Change | | :--- | :--- | :--- | :--- | :--- | | Boston | Avg Monthly Rental Rate | $4,066 | $3,939 | 3.22 % | | | Avg Physical Occupancy | 96.15 % | 95.04 % | 1.17 % | | San Francisco | Avg Monthly Rental Rate | $2,996 | $3,061 | (2.12)% | | | Avg Physical Occupancy | 89.64 % | 87.06 % | 2.96 % | | Washington, DC | Avg Physical Occupancy | 83.01 % | 96.00 % | (13.53)% | Hotel Performance (Boston Marriott Cambridge, YoY Change) | Metric | 30-Jun-25 | 30-Jun-24 | Percent Change | | :--- | :--- | :--- | :--- | | Average Occupancy | 82.80 % | 80.60 % | 2.73 % | | Revenue Per Available Room | $308.90 | $299.94 | 2.99 % | - The significant decrease in Washington, DC residential occupancy is attributed to the initial lease-up period of Skymark, completed in December 2024, with physical occupancy at 83.66% as of July 25, 2025[57] In-Service Property Listing This section provides a detailed listing of BXP's in-service properties, categorized by CBD and Suburban markets, including square footage, occupancy, and rental obligations CBD Office Properties - Boston (Selected) | Property | Square Feet | Occupied % | Leased % | Annualized Rental Obligations Per Occupied SF | | :--- | :--- | :--- | :--- | :--- | | 200 Clarendon Street | 1,725,721 | 99.9 % | 99.9 % | $87.14 | | 800 Boylston Street - The Prudential Center | 1,274,927 | 97.4 % | 97.7 % | $73.36 | | 100 Federal Street (55% ownership) | 1,233,546 | 91.4 % | 97.1 % | $77.78 | | Subtotal Boston CBD | 11,141,004 | 97.0 % | 98.5 % | $86.20 | CBD Office Properties - New York (Selected) | Property | Square Feet | Occupied % | Leased % | Annualized Rental Obligations Per Occupied SF | | :--- | :--- | :--- | :--- | :--- | | 767 Fifth Avenue (The GM Building) (60% ownership) | 1,970,335 | 92.3 % | 98.5 % | $169.42 | | 601 Lexington Avenue (55% ownership) | 1,671,682 | 99.4 % | 99.4 % | $99.93 | | 399 Park Avenue | 1,567,470 | 100.0 % | 100.0 % | $104.78 | | Subtotal New York CBD | 10,395,945 | 87.2 % | 93.0 % | $109.51 | - The total in-service properties portfolio (excluding hotel and residential) has an overall occupied percentage of 86.4% and a leased percentage of 89.1%, with an annualized rental obligation of $82.81 per occupied square foot[61] Top 20 Clients Listing and Portfolio Client Diversification BXP's top 20 clients account for 28.68% of annualized rental obligations and 22.28% of square feet, with Salesforce being the largest client Top 20 Clients (as of June 30, 2025) | Client | BXP's Share of Annualized Rental Obligations | Weighted Average Remaining Lease Term (years) | | :--- | :--- | :--- | | Salesforce | 3.36 % | 6.7 | | Google | 2.90 % | 11.8 | | Akamai Technologies | 2.16 % | 9.3 | | Kirkland & Ellis | 1.81 % | 12.1 | | Biogen | 1.79 % | 2.9 | | Top 20 Clients Total | 28.68 % | 9.3 | Notable Signed Deals (with future occupancy) | Client | Property | Square Feet | | :--- | :--- | :--- | | AstraZeneca | 290 Binney Street | 573,000 | | Defense Technology Company | 1050 Winter Street | 162,000 | | McDermott Will & Emery LLP | 725 12th Street, NW | 152,000 | | Cooley | 725 12th Street, NW | 126,000 | Occupancy by Location Total in-service office properties showed a slight quarter-over-quarter decrease in occupancy from 86.9% to 86.4%, while Same Property office occupancy also decreased year-over-year Total In-Service Office Properties - Occupancy (Quarter-over-Quarter) | Location | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Boston CBD | 97.0 % | 96.3 % | +0.7 pp | | Boston Suburban | 71.6 % | 77.0 % | -5.4 pp | | New York CBD | 87.2 % | 88.1 % | -0.9 pp | | San Francisco CBD | 81.8 % | 81.7 % | +0.1 pp | | Seattle CBD | 84.6 % | 81.9 % | +2.7 pp | | Washington, DC CBD | 91.1 % | 91.9 % | -0.8 pp | | Total Portfolio | 86.4 % | 86.9 % | -0.5 pp | Same Property Office Properties - Occupancy (Year-over-Year) | Location | 30-Jun-25 | 30-Jun-24 | Change (YoY) | | :--- | :--- | :--- | :--- | | Boston CBD | 96.9 % | 95.3 % | +1.6 pp | | New York CBD | 87.2 % | 90.8 % | -3.6 pp | | San Francisco CBD | 81.8 % | 84.0 % | -2.2 pp | | Seattle CBD | 84.6 % | 80.2 % | +4.4 pp | | Washington, DC Suburban | 68.4 % | 84.5 % | -16.1 pp | | Total Portfolio | 86.8 % | 87.7 % | -0.9 pp | Debt and Capitalization Capital Structure As of June 30, 2025, BXP's consolidated debt totaled $15.81 billion, primarily unsecured senior notes and mortgage notes, resulting in a Consolidated Debt/Consolidated Market Capitalization ratio of 57.00% Consolidated Debt (in thousands) | Debt Type | Outstanding Principal | | :--- | :--- | | Mortgage Notes Payable | $4,300,161 | | Unsecured Line of Credit | $185,000 | | Unsecured Term Loans | $800,000 | | Unsecured Commercial Paper | $750,000 | | Unsecured Senior Notes, at face value | $9,850,000 | | Outstanding Principal Total | $15,885,161 | | Consolidated Debt | $15,811,005 | Capitalization Ratios | Metric | Value | | :--- | :--- | | Consolidated Market Capitalization | $27,739,296 | | Consolidated Debt/Consolidated Market Capitalization | 57.00 % | | BXP's Share of Market Capitalization | $27,761,978 | | BXP's Share of Debt/BXP's Share of Market Capitalization | 57.03 % | - The largest mortgage note payable is $2.3 billion for 767 Fifth Avenue (The GM Building), maturing in June 2027 with a GAAP interest rate of 3.64%[74] - Unsecured Senior Notes include $3.35 billion in "green bonds" with various maturities and coupon rates[75] Debt Analysis BXP maintains a $2.25 billion unsecured revolving credit facility, with its debt predominantly unsecured (72.94%) and fixed-rate (89.68%), having a weighted average maturity of 4.1 years Unsecured Revolving Credit Facility (in thousands) | Metric | Outstanding at June 30, 2025 | Remaining Capacity at June 30, 2025 | | :--- | :--- | :--- | | Unsecured Line of Credit | $185,000 | $2,065,000 | | Less: Unsecured Commercial Paper | — | $750,000 | | Less: Letters of Credit | — | $5,393 | | Total Remaining Capacity | N/A | $1,309,607 | Unsecured and Secured Debt Analysis | Debt Type | % of Total Debt | Weighted Average Stated Rates | Weighted Average GAAP Rates | Maturity (years) | | :--- | :--- | :--- | :--- | :--- | | Unsecured Debt | 72.94 % | 4.19 % | 4.29 % | 4.4 | | Secured Debt | 27.06 % | 3.80 % | 4.10 % | 3.3 | | Consolidated Debt | 100.00 % | 4.08 % | 4.24 % | 4.1 | Floating and Fixed Rate Debt Analysis | Debt Type | % of Total Debt | Weighted Average Stated Rates | Weighted Average GAAP Rates | Maturity (years) | | :--- | :--- | :--- | :--- | :--- | | Floating Rate Debt | 10.32 % | 5.02 % | 5.09 % | 2.2 | | Fixed Rate Debt | 89.68 % | 3.97 % | 4.14 % | 4.4 | | Consolidated Debt | 100.00 % | 4.08 % | 4.24 % | 4.1 | Senior Unsecured Debt Covenant Compliance Ratios BXP's Operating Partnership was in compliance with all senior unsecured debt covenants as of June 30, 2025, with key ratios well within required limits - BXP's Operating Partnership was in compliance with all senior unsecured debt covenants as of June 30, 2025[86] Senior Unsecured Debt Covenant Compliance Ratios (as of June 30, 2025) | Covenant | Test | Actual (Prior to Dec 4, 2017 Notes) | Actual (On or After Dec 4, 2017 Notes) | | :--- | :--- | :--- | :--- | | Total Outstanding Debt/Total Assets | Less than 60% | 47.8 % | 44.8 % | | Secured Debt/Total Assets | Less than 50% | 16.0 % | 15.0 % | | Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) | Greater than 1.50x | 2.94 | 2.94 | | Unencumbered Assets/Unsecured Debt | Greater than 150% | 233.2 % | 251.2 % | Net Debt to EBITDAre BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) improved slightly to 8.18x as of June 30, 2025, driven by increased EBITDAre and a slight decrease in Net Debt BXP's Share of EBITDAre and EBITDAre – cash (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | BXP's Share of EBITDAre | $469,962 | $458,279 | +2.55% | | BXP's Share of EBITDAre – cash | $461,815 | $455,565 | +1.37% | | BXP's Share of EBITDAre (Annualized) | $1,879,848 | $1,833,116 | +2.55% | BXP's Share of Net Debt (in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Consolidated debt | $15,811,005 | $15,671,692 | +0.89% | | Net debt | $15,364,052 | $15,273,566 | +0.59% | | BXP's Share of Net Debt | $15,384,354 | $15,270,263 | +0.75% | - The ratio of BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) improved from 8.33x in Q1 2025 to 8.18x in Q2 2025[90] Debt Ratios BXP's Interest Coverage Ratio (excluding capitalized interest) slightly increased to 2.85x in Q2 2025, while the Fixed Charge Coverage Ratio decreased to 2.23x due to higher capital expenditures Interest Coverage Ratio | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Adjusted interest expense excluding capitalized interest | $162,073 | $161,111 | +0.60% | | Adjusted interest expense including capitalized interest | $176,089 | $173,263 | +1.63% | | BXP's Share of EBITDAre – cash | $461,815 | $455,565 | +1.37% | | Interest Coverage Ratio (excluding capitalized interest) | 2.85 | 2.83 | +0.71% | | Interest Coverage Ratio (including capitalized interest) | 2.62 | 2.63 | -0.38% | Fixed Charge Coverage Ratio | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Total Fixed Charges | $207,159 | $191,729 | +8.05% | | BXP's Share of EBITDAre – cash | $461,815 | $455,565 | +1.37% | | Fixed Charge Coverage Ratio | 2.23 | 2.38 | -6.30% | - The increase in Total Fixed Charges was primarily driven by higher BXP's Share of maintenance capital expenditures ($30.21 million vs $18.31 million QoQ) and hotel improvements, equipment upgrades and replacements ($0.86 million vs $0.16 million QoQ)[92] Joint Ventures Consolidated Joint Ventures As of June 30, 2025, BXP's consolidated joint ventures reported total assets of $7.68 billion and total liabilities of $3.72 billion, generating $205.80 million in rental revenue for Q2 2025 Consolidated Joint Ventures - Balance Sheet Information (in thousands, as of June 30, 2025) | Metric | 767 Fifth Avenue | Norges Joint Ventures | Total Consolidated Joint Ventures | | :--- | :--- | :--- | :--- | | Total assets | $3,594,624 | $4,083,636 | $7,678,260 | | Total liabilities | $2,381,804 | $1,338,324 | $3,720,128 | | BXP, Inc. Equity | $729,206 | $1,224,813 | $1,954,019 | | Noncontrolling interests | $483,614 | $1,520,499 | $2,004,113 | | Partners' share of consolidated debt | $917,322 | $446,042 | $1,363,364 | Consolidated Joint Ventures - Results of Operations (in thousands, Q2 2025) | Metric | 767 Fifth Avenue | Norges Joint Ventures | Total Consolidated Joint Ventures | | :--- | :--- | :--- | :--- | | Total rental revenue | $86,781 | $119,019 | $205,800 | | Net Operating Income (NOI) | $47,079 | $76,506 | $123,585 | | Net income | $8,267 | $42,791 | $51,058 | | BXP's share of FFO | $16,934 | $40,088 | $57,022 | Unconsolidated Joint Ventures BXP's unconsolidated joint ventures had a total net equity of $1.16 billion as of June 30, 2025, generating $122.35 million in rental revenue for Q2 2025, with New York JVs reporting a net loss Unconsolidated Joint Ventures - Balance Sheet Information (in thousands, as of June 30, 2025) | Metric | Net Equity | Mortgage/Construction Loans Payable, Net | | :--- | :--- | :--- | | Boston JVs | $113,352 | $335,356 | | Los Angeles JVs | $97,290 | $274,812 | | New York JVs | $265,349 | $428,013 | | San Francisco JVs | $448,881 | $0 | | Seattle JVs | $43 | $84,041 | | Washington, DC JVs | $145,964 | $213,714 | | Total Investments in Unconsolidated Joint Ventures | $1,161,036 | $1,386,046 | Unconsolidated Joint Ventures - Results of Operations (in thousands, Q2 2025) | Metric | Total Unconsolidated Joint Ventures | | :--- | :--- | | Total rental revenue | $122,351 | | Net operating income | $67,492 | | Net income (loss) | $(23,919) | | BXP's share of FFO | $13,350 | - New York unconsolidated joint ventures reported a net loss of $(24.16) million and BXP's share of FFO of $(3.94) million for Q2 2025, primarily due to unrealized loss on derivative instruments[103][105] - The 3 Hudson Boulevard loan, where BXP provided $80 million in mortgage financing, was in maturity default as of June 30, 2025, with an outstanding balance of approximately $126.8 million[105] Lease Expiration Roll-Out Total In-Service Properties This section details BXP's Share of annualized rental obligations and rentable square footage expiring annually for total in-service office and retail properties BXP's Share of Office Lease Expirations (Total In-Service Properties) | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 724,662 | $66.65 | $66.86 | | 2029 | 3,020,129 | $74.89 | $79.74 | | 2034 | 2,823,725 | $90.57 | $103.29 | | Thereafter | 10,680,344 | $81.44 | $99.45 | BXP's Share of Retail Lease Expirations (Total In-Service Properties) | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 34,353 | $92.07 | $92.07 | | 2033 | 429,193 | $71.49 | $80.90 | | 2034 | 264,966 | $131.33 | $152.66 | | Thereafter | 416,273 | $112.02 | $106.80 | BXP's Share of Total Property Types Lease Expirations (Total In-Service Properties) | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 759,015 | $67.80 | $68.01 | | 2029 | 3,186,305 | $76.56 | $81.43 | | 2034 | 3,088,691 | $94.06 | $107.53 | | Thereafter | 11,096,617 | $82.58 | $99.72 | Boston For Boston properties, office lease expirations are significant in 2028 and "Thereafter," with retail lease expirations being smaller but with higher rental obligations per square foot BXP's Share of Office Lease Expirations - Boston | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 209,970 | $57.53 | $57.53 | | 2028 | 941,691 | $97.27 | $102.86 | | Thereafter | 3,750,066 | $85.31 | $107.06 | BXP's Share of Retail Lease Expirations - Boston | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 30,174 | $88.92 | $88.92 | | 2033 | 254,385 | $82.89 | $94.71 | | Thereafter | 173,578 | $79.14 | $87.89 | Los Angeles Los Angeles office lease expirations are most significant in 2029 and "Thereafter," with retail lease expirations being minimal BXP's Share of Office Lease Expirations - Los Angeles | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 766 | $66.96 | $66.96 | | 2029 | 240,815 | $71.75 | $80.01 | | Thereafter | 494,641 | $75.85 | $92.91 | BXP's Share of Retail Lease Expirations - Los Angeles | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2029 | 38,118 | $60.69 | $65.70 | | 2030 | 11,364 | $117.37 | $127.22 | New York New York office lease expirations are substantial in 2029, 2031, and "Thereafter," with retail lease expirations being smaller but showing high rental obligations per square foot in some years BXP's Share of Office Lease Expirations - New York | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 96,869 | $64.00 | $64.00 | | 2029 | 724,762 | $83.27 | $85.48 | | 2031 | 900,791 | $87.51 | $93.25 | | Thereafter | 2,960,019 | $95.42 | $110.01 | BXP's Share of Retail Lease Expirations - New York | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 4,179 | $114.86 | $114.86 | | 2026 | 12,423 | $759.34 | $762.01 | | 2034 | 85,037 | $248.66 | $299.35 | San Francisco San Francisco office lease expirations are notable in 2026, 2027, 2029, 2031, and "Thereafter," with retail lease expirations being smaller BXP's Share of Office Lease Expirations - San Francisco | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 254,737 | $80.24 | $80.53 | | 2026 | 546,831 | $95.84 | $98.66 | | 2031 | 931,032 | $109.55 | $119.63 | | Thereafter | 401,096 | $97.21 | $127.83 | BXP's Share of Retail Lease Expirations - San Francisco | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2026 | 16,601 | $56.36 | $57.20 | | 2034 | — | — | — | Seattle Seattle office lease expirations are most significant in 2028, with retail lease expirations being minimal BXP's Share of Office Lease Expirations - Seattle | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 87,411 | $46.84 | $46.84 | | 2028 | 302,445 | $56.22 | $59.06 | | Thereafter | 23,614 | $69.39 | $84.99 | BXP's Share of Retail Lease Expirations - Seattle | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2028 | 945 | $54.42 | $59.12 | | 2029 | 377 | $19.36 | $19.36 | Washington, DC Washington, DC office lease expirations are substantial in 2033 and "Thereafter," with retail lease expirations also significant in those periods BXP's Share of Office Lease Expirations - Washington, DC | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2025 | 74,909 | $72.55 | $73.61 | | 2033 | 1,162,848 | $60.82 | $72.78 | | Thereafter | 3,050,908 | $62.03 | $77.29 | BXP's Share of Retail Lease Expirations - Washington, DC | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2026 | 29,287 | $51.93 | $52.07 | | 2033 | 146,146 | $29.21 | $32.18 | | Thereafter | 91,016 | $61.55 | $73.87 | CBD This section provides a breakdown of BXP's Share of lease expirations for CBD properties across its gateway cities, highlighting significant expirations in Boston, New York, and San Francisco BXP's Share of Lease Expirations - Boston CBD | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2028 | 705,702 | $116.13 | $122.59 | | 2030 | 1,160,116 | $74.54 | $79.12 | | Thereafter | 3,631,807 | $87.47 | $109.35 | BXP's Share of Lease Expirations - New York CBD | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2029 | 571,684 | $98.88 | $101.47 | | 2031 | 730,618 | $104.27 | $111.79 | | Thereafter | 2,784,252 | $106.42 | $119.65 | BXP's Share of Lease Expirations - San Francisco CBD | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2026 | 350,881 | $100.04 | $103.93 | | 2027 | 428,428 | $105.47 | $109.20 | | 2031 | 929,661 | $109.84 | $119.77 | Suburban This section details BXP's Share of lease expirations for Suburban properties across Boston, New York, and San Francisco, highlighting significant expirations in various years BXP's Share of Lease Expirations - Boston Suburban | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2029 | 493,686 | $51.85 | $57.01 | | 2031 | 567,466 | $66.59 | $71.96 | | 2034 | 326,384 | $73.03 | $85.07 | BXP's Share of Lease Expirations - New York Suburban | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2026 | 148,646 | $40.79 | $41.11 | | 2027 | 363,535 | $40.39 | $41.02 | | 2031 | 184,641 | $41.78 | $43.21 | BXP's Share of Lease Expirations - San Francisco Suburban | Year | Rentable Square Footage | Current Annualized Rental Obligations ($/PSF) | Annualized Rental Obligations with future step-ups ($/PSF) | | :--- | :--- | :--- | :--- | | 2026 | 212,551 | $85.83 | $86.73 | | 2034 | 112,990 | $116.11 | $143.69 | Research Coverage, Definitions and Reconciliations Research Coverage This section lists the equity and debt research analysts and rating agencies that cover BXP, Inc., explicitly stating that their opinions do not represent those of the Company - BXP is covered by numerous equity research analysts from major financial institutions including Bank of America Merrill Lynch, Barclays, BMO Capital, Citi, Deutsche Bank, Goldman Sachs, J.P. Morgan Securities, Morgan Stanley, Piper Sandler Companies, Scotiabank GBM, Truist Securities, UBS US Equity Research, Wells Fargo Securities, and Wolfe Research[159] - Debt research coverage is provided by Barclays, J.P. Morgan Securities, US Bank, and Wells Fargo, while rating agencies include Moody's Investors Service and Standard & Poor's[159] - The Company explicitly disclaims endorsement of or concurrence with any opinions, estimates, or forecasts made by the listed analysts[158] Definitions This section provides detailed definitions for various non-GAAP financial measures and other key terms used throughout the supplemental report, explaining their rationale and supplementary nature to GAAP - "BXP's Share" adjusts consolidated amounts for joint venture interests to reflect the company's true economic interest, providing useful supplemental information to investors[161] - EBITDAre (Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate) is a Nareit-defined non-GAAP measure used internally to assess operational performance trends on an unleveraged basis[169] - FFO (Funds from Operations) is a Nareit-defined non-GAAP measure that adjusts net income for real estate-related depreciation, amortization, and gains/losses from property sales, aiming to improve comparability of REIT operating results[175] - FAD (Funds Available for Distribution) is a non-GAAP measure that further adjusts FFO for non-cash items and capital expenditures, providing supplemental information on the company's ability to generate cash for distributions[173] - NOI (Net Operating Income) is a non-GAAP measure that reflects property-level operating performance by excluding corporate-level expenses and non-cash items, useful for comparing operational trends[181][182] - "Same Properties" are defined as properties owned and in-service throughout the entire comparison period, excluding newly acquired, developed, or disposed properties, to ensure meaningful period-over-period NOI comparisons[185] Reconciliations This section provides quantitative reconciliations for various "BXP's Share" metrics and non-GAAP financial measures, detailing adjustments for consolidated and unconsolidated joint ventures - Reconciliations are provided for "BXP's Share" of key financial metrics, adjusting consolidated GAAP figures for partners' shares in consolidated JVs and BXP's share in unconsolidated JVs[186] BXP's Share of Select Items (QoQ Change, in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | BXP's Share of revenue | $835,667 | $836,192 | -0.06% | | BXP's Share of straight-line rent | $20,535 | $26,687 | -23.07% | | BXP's Share of depreciation and amortization | $219,548 | $216,970 | +1.20% | | BXP's Share of maintenance capital expenditures | $30,211 | $18,307 | +65.03% | | BXP's Share of interest expense | $169,763 | $170,294 | -0.31% | Reconciliation of BXP's Share of Same Property NOI (excluding termination income) (in thousands) | Metric | 31-Mar-25 | 31-Mar-24 | Change (YoY) | | :--- | :--- | :--- | :--- | | BXP's Share of Same Property NOI (excluding termination income) | $481,080 | $484,090 | -0.6% | | BXP's Share of Same Property NOI - cash (excluding termination income) | $460,896 | $452,573 | +1.8% | Consolidated Income Statement - Prior Year This section provides the consolidated income statement for the three months ended June 30, 2024, and March 31, 2024, allowing for prior period performance comparisons Consolidated Income Statement (in thousands, except per share amounts) | Metric | 30-Jun-24 | 31-Mar-24 | | :--- | :--- | :--- | | Total revenue | $850,482 | $839,439 | | Total expenses | $599,253 | $593,712 | | Net income | $106,949 | $106,604 | | Net income attributable to BXP, Inc. | $79,615 | $79,883 | | Net income attributable to BXP, Inc. per share - diluted | $0.51 | $0.51 |