Boston Properties(US:BXP) ZACKS·2025-10-29 15:45Core Insights - Boston Properties Inc. (BXP) reported third-quarter 2025 funds from operations (FFO) per share of $1.74, exceeding the Zacks Consensus Estimate of $1.72, but reflecting a 3.9% decline year over year [1][9] - The company experienced strong leasing activity, signing 79 leases totaling over 1.5 million square feet, with a weighted average lease term of 7.9 years, marking a 38% increase year over year [2][9] - BXP revised its 2025 FFO per share guidance to a range of $6.89-$6.92, up from the previous range of $6.84-$6.92 [10] Financial Performance - Quarterly lease revenues reached $809.8 million, a 1.3% increase year over year, while total revenues rose 1.4% to $871.5 million [2] - Rental revenues for the office portfolio were $813.8 million, up 1.9% year over year, while the hotel and residential segment saw a 4.4% decrease to $26 million [3] - BXP's share of same-property net operating income (NOI) on a cash basis was $470.9 million, a 2.6% increase from the prior year [4] Occupancy and Portfolio Activity - The occupancy rate for BXP's in-service properties decreased by 40 basis points to 86% due to new project deliveries without revenue recognition [5] - In Q3 2025, BXP commenced construction on a 46-story, 93,000-square-foot office building at 343 Madison Avenue, Manhattan [6] - The company placed three development projects into service, with varying occupancy rates: 100% leased at 1050 Winter Street, 92% at Reston Next Office Phase II, and 38% at 360 Park Avenue South [7] Balance Sheet and Debt Position - BXP ended Q3 2025 with cash and cash equivalents of $861.1 million, significantly up from $447 million at the end of Q2 2025 [8] - The company's net debt to EBITDAre ratio was 8.21 as of September 30, 2025, slightly up from 8.18 at the end of Q2 2025 [8]