Boston Properties(US:BXP)2025-11-07 19:52Financial Performance - Total revenue for Q3 2025 was $871,510,000, a 1.5% increase from $859,227,000 in Q3 2024[28] - Lease revenue increased to $809,820,000 in Q3 2025, compared to $799,471,000 in Q3 2024, reflecting a growth of 0.2%[28] - Net income attributable to BXP, Inc. for Q3 2025 was a loss of $121,712,000, compared to a profit of $83,628,000 in Q3 2024[28] - Net income for the three months ended September 30, 2025, was $(116,840) thousand, compared to $108,452 thousand for the same period in 2024, representing a decline of 208%[31] - Comprehensive income attributable to BXP, Inc. for the three months ended September 30, 2025, was $(121,484) thousand, a decrease from $57,355 thousand in the prior year[31] - For the nine months ended September 30, 2025, net income was $89,206 thousand, down from $322,005 thousand in 2024, indicating a decline of 72.3%[31] - Basic earnings per share attributable to BXP, Inc. for Q3 2025 was a loss of $0.77, compared to earnings of $0.53 in Q3 2024[28] - Net income for the nine months ended September 30, 2025, was $97,327,000, a decrease from $327,109,000 in the same period of 2024[65] Assets and Liabilities - Total assets decreased to $25,999,482,000 as of September 30, 2025, down from $26,084,980,000 at the end of 2024[25] - Total liabilities increased to $18,482,700,000 as of September 30, 2025, compared to $18,137,324,000 at December 31, 2024[25] - Total stockholders' equity attributable to BXP, Inc. decreased to $4,999,559,000 as of September 30, 2025, from $5,413,306,000 at December 31, 2024[25] - Total assets as of September 30, 2025, were $25,771,513, a slight decrease from $25,848,890 at the end of 2024[48] - The company's total liabilities increased to $18,482,700 as of September 30, 2025, compared to $18,137,324 at the end of 2024, an increase of approximately 1.9%[48] Cash Flow and Investments - Cash and cash equivalents decreased to $861,066,000 as of September 30, 2025, from $1,254,882,000 at December 31, 2024, a decline of 31.4%[23] - Total cash provided by operating activities was $837,405 for the nine months ended September 30, 2025, slightly down from $850,755 in 2024, a decrease of about 1.4%[41] - Cash used in investing activities increased to $988,228 in 2025 from $850,787 in 2024, marking an increase of approximately 16.2%[43] - The company reported a net cash decrease of $396,467 in cash and cash equivalents for the nine months ended September 30, 2025, compared to a decrease of $141,083 in 2024[43] - Cash and cash equivalents at the end of the period were $938,729, down from $1,471,484 at the end of September 2024, a decrease of about 36.1%[43] Expenses and Impairments - Depreciation and amortization expenses for Q3 2025 were $236,147,000, compared to $222,890,000 in Q3 2024, an increase of 5.9%[28] - The company reported an impairment loss of $68,901,000 in Q3 2025, compared to $13,615,000 in Q3 2024[28] - The company incurred impairment losses of $68,901 in 2025, significantly higher than $13,615 in 2024, indicating a substantial increase in asset impairment[41] - General and administrative expenses for the three months ended September 30, 2025, were $36,188, up from $33,352 in 2024, indicating an increase of 5.5%[187] Real Estate and Joint Ventures - As of September 30, 2025, BXP owned or had joint venture interests in 187 commercial real estate properties, totaling approximately 54.6 million net rentable square feet, including eight properties under construction/redevelopment of about 3.5 million net rentable square feet[75] - The company reported gains on sales of real estate amounting to $1.9 million in Q3 2025, compared to $0.5 million in Q3 2024[53] - The company reported a net income attributable to Boston Properties Limited Partnership of $(130.1) million for Q3 2025, compared to $94.9 million in Q3 2024[53] - The company's share of net loss from unconsolidated joint ventures for the three months ended September 30, 2025, was $(6.6) million, a decrease from $(9.3) million in the same period of 2024[120] Financing and Capital Structure - The Company issued $1.0 billion aggregate principal amount of 2.00% Exchangeable Senior Notes due 2030 on September 29, 2025, enhancing its capital structure[84] - BPLP drew the full $700.0 million of the Term Loan Facility to repay the remaining balance of $700.0 million under its previous unsecured term loan facility[143] - The 2025 Credit Facility allows for aggregate borrowings of up to $2.950 billion, including a $700.0 million unsecured term loan facility with an initial maturity date of March 30, 2029[137] - The Company recognized approximately $(1.0) million of interest expense related to the interest rate swap contract for the period from April 7, 2025, through September 30, 2025[148] Shareholder Returns and Compensation - BXP's dividends per share for September 30, 2025, were declared at $0.70, a decrease from $0.98 in previous quarters[179] - The final payout for the Company's 2022 MYLTIP awards was determined to be 59% of target, amounting to approximately $5.4 million[171] - The Company approved the 2025 Multi-Year Long-Term Incentive Program with an aggregate value of approximately $12.7 million, focusing on performance metrics including total shareholder return and funds from operations per share growth[202] Market Strategy and Operations - BXP operates in six major U.S. markets, focusing on premier workplaces that attract creditworthy clients and command upper-tier rental rates[215][216] - The company's core strategy emphasizes developing and managing premier workplaces in gateway markets with high barriers to entry and executing long-term leases with financially strong clients[221] - BXP's performance has consistently outperformed the broader office market in both rental rates and occupancy, validating its strategic focus on premier workplaces[221]