Boston Properties(US:BXP)2025-10-28 20:22Portfolio Overview - As of September 30, 2025, BXP's portfolio totals 54.6 million square feet across 187 properties, including 8 properties under construction/redevelopment[3] - BXP's properties include 163 office properties, 14 retail properties, nine residential properties, and one hotel, showcasing a diverse portfolio[3] - The total properties under construction amount to 3,522,100 square feet, with a total investment of $1,008.19 million and a future equity requirement of $76.147 million[43] - The total square footage of in-service properties is 42,087,505 square feet with an overall occupancy rate of 89.3% and a leased rate of 92.0%[65] - The total square footage for Washington, DC properties is 2,730,165 with an occupancy rate of 88.5% and a leased rate of 89.8%[62] Financial Performance - BXP's market capitalization is approximately $29.7 billion, with a closing share price of $74.34[14] - The company declared a quarterly dividend of $0.70 per share, resulting in an annualized dividend of $2.80 per share and a dividend yield of 3.8%[14] - Revenue for the three months ended September 30, 2025, was $871,510,000, slightly up from $868,457,000 in the previous quarter[20] - Net income attributable to BXP, Inc. for the three months ended September 30, 2025, was a loss of $121,712,000, compared to a profit of $88,977,000 for the previous quarter[20] - Total revenue for the three months ended September 30, 2025, was $871,510,000, a slight increase from $868,457,000 in the previous quarter, representing a growth of 0.12%[24] Earnings and Funds from Operations - Projected diluted EPS for Full Year 2025 is estimated to be between $0.99 and $1.02[18] - Projected FFO per share (diluted) for Full Year 2025 is expected to be between $6.89 and $6.92[18] - FFO attributable to BXP, Inc. for the same period was $276,674,000, with diluted FFO per share at $1.74[20] - Basic Funds From Operations (FFO) for the quarter was $307,347,000, up from $301,769,000 in the previous quarter, reflecting an increase of 1.9%[28] - The company’s diluted FFO per share was $1.74, up from $1.71 in the previous quarter, indicating a growth of 1.76%[27] Debt and Liabilities - Consolidated debt as of September 30, 2025, was $16,604,696,000, with a debt-to-market capitalization ratio of 55.82%[20] - Total liabilities rose to $18,482,700,000 as of September 30, 2025, from $17,766,779,000 in the previous quarter[23] - The total outstanding debt to total assets ratio was 49.3%, well below the 60% limit, indicating strong asset coverage[92] - The interest coverage ratio, calculated as annualized consolidated EBITDA to annualized interest expense, was 2.94, exceeding the required minimum of 1.50x[92] - The weighted average interest rate for consolidated debt was 4.07%, with unsecured debt comprising 74.23% of total debt at a stated rate of 3.99%[87] Sustainability and Innovation - The company has maintained a thirteenth consecutive GRESB "Green Star" recognition and the highest GRESB 5-star Rating, highlighting its commitment to sustainability[3] - BXP emphasizes sustainability innovation to minimize emissions from its development and in-service portfolio[16] - The company aims to recycle capital by disposing of assets that no longer meet its investment profile, allowing for reinvestment opportunities[16] - BXP's strategy includes maintaining a strong balance sheet to ensure consistent access to capital for new investments[16] Market and Occupancy Trends - Average in-service portfolio occupancy is projected to be between 86.50% and 87.50% for Full Year 2025[19] - BXP's share of Same Property net operating income is expected to change by 0.50% to 1.00% for Full Year 2025[19] - The company reported a weighted average remaining lease term of 9.2 years for its top 20 clients, with Salesforce contributing 3.34% to annualized rental obligations[68] - The average rental rate per occupied square foot in Washington, DC increased by 9.49% to $3.23 from $2.95 year-over-year[59] - The average occupancy rate for hotel rooms in Boston was 82.80%, a slight increase of 0.12% year-over-year[60] Capital Expenditures and Investments - Capital expenditures for the three months ended September 30, 2025, totaled $42,281,000, down from $52,920,000 in the previous quarter[37] - The company acquired properties totaling 1,490,000 square feet, with a total investment of $975,650,000, including $63,532,000 in initial investments[40] - The anticipated future investment for the property at 343 Madison Avenue is $843,418,000, with an initial investment of $43,532,000[40] - The company has committed to fund up to $65.0 million in preferred equity and has entered into a $225.0 million construction loan, with its share being approximately $43.8 million[41] - The company reported a non-cash impairment charge of approximately $145.1 million for the quarter[26] Future Projections and Obligations - The company expects to incur remaining lease payments aggregating approximately $29.3 million by the end of 2027, with no payments thereafter[33] - The annualized rental obligations under expiring leases for 2025 were $18,608,901, with a rental rate of $76.46 per square foot[113] - For 2026, annualized rental obligations are projected to be $105,655,990, with a rental rate of $75.28 per square foot, representing a 3.50% increase in total square footage[113] - The total annualized rental obligations for the year 2031 are estimated at $42,733,582, with a PSF of $68.52[118] - The company anticipates a significant increase in rental obligations to $43,386,599 in 2032, with a PSF of $68.33, from 657,486 square feet[150]