Financial Data and Key Metrics Changes - The company reported a normalized FFO growth of 4.6% for Q3 2025, aligning with expectations [3] - Normalized FFO per share was $0.75, consistent with guidance [12] - Full-year normalized FFO guidance is maintained at $3.06 per share, representing an estimated growth rate of 4.9% compared to 2024 [16] Business Line Data and Key Metrics Changes - Core community-based rental income increased by 5.5% for Q3 and year-to-date compared to the same periods in 2024 [12] - Core RV and marina annual base rental income rose by 3.9% for Q3 and year-to-date compared to the same periods last year [13] - Seasonal rent decreased by 7% and transient rent decreased by 8.4% year-to-date [13] Market Data and Key Metrics Changes - The Florida manufactured housing portfolio reached 94% occupancy, with marked market rent increases of 13% for new home buyers [8][9] - Arizona and California markets are 95% occupied, attracting home buyers due to desirable locations and quality amenities [9] - Canadian customer reservations are down approximately 40% compared to the prior year, impacting seasonal and transient revenue [26][60] Company Strategy and Development Direction - The company focuses on expanding its manufactured housing portfolio, expecting to issue rent increase notices to 50% of residents by the end of October 2025, with an average increase of 5.1% [5] - The strategy includes leveraging technology for marketing and customer engagement, targeting RV owners and adapting to evolving customer preferences [4][5] - The company aims to add about 400 to 500 expansion sites in the manufactured housing sector, which is lower than previous years but deemed sustainable [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of property operations and FFO, with expectations for continued growth in 2026 [3][6] - The anticipated rent increases are expected to support long-term revenue growth, with a focus on enhancing resident experience through capital improvements [6] - Management acknowledged challenges from Canadian customer reservations due to political issues but remains optimistic about future bookings as winter approaches [24][60] Other Important Information - The company maintains a strong balance sheet with no secured debt maturing before 2028 and a debt-to-EBITDA ratio of 4.5 times [18][19] - The company has access to over $1 billion in capital from its combined line of credit and ATM programs [19] Q&A Session Summary Question: Can you talk about the process for setting 2026 rent increases? - The process for MH and RV rate increases involves reviewing competitive sets and setting rates during the budget process, with no unusual market behavior noted [21][22] Question: What is the success rate of reaching out to Canadian customers for seasonal reservations? - The company noted that the cold winter season typically drives reservations, and they expect an increase as winter approaches despite current political issues affecting bookings [23][24] Question: Does guidance assume a 40% decline in Canadian bookings? - The guidance reflects a 13.3% decline in combined seasonal and transient revenue, primarily due to lower reservations from Canadian customers [26] Question: What is the outlook for the core FFO guidance range? - The company maintains a $0.10 range for full-year guidance, with no significant changes expected [29] Question: Can you discuss the potential for developing more sites in the MH sector? - The company is looking to add 400 to 500 expansion sites, with a focus on investing in existing properties rather than acquisitions due to limited availability [30][31] Question: How are you managing expenses in light of transient revenue declines? - The company has successfully contained expenses, particularly in payroll, and anticipates some volatility in real estate taxes moving forward [38] Question: How will you backfill missing demand from Canadian customers? - The company is focusing on marketing to U.S. customers and leveraging social media to attract bookings, rather than relying solely on discounted rates [69][70]

Summary of BXP Conference Call Company Overview - The conference call was hosted by BMO Capital Markets featuring BXP (formerly known as Boston Properties) with key executives including Owen Thomas (Chairman and CEO), Doug Linde (President and Director), and Mike LaBelle (CFO) [1][2] Core Industry Insights - **Leasing Activity**: BXP reported a significant increase in leasing activity, with a 30% rise in leases executed in the first quarter compared to the same period in the previous year [3][4] - **Occupancy Rates**: Current occupancy is approximately 87%, with potential to increase as rollover exposure in 2026 and 2027 is under 5% [5][12] - **Development Pipeline**: The company is set to deliver a major project, 290 Binney Street, which is 100% leased to AstraZeneca, expected to add $45 million to $50 million in cash flow [6][46] Financial Performance - **Funds from Operations (FFO)**: Each percentage point increase in occupancy translates to approximately $0.20 per share in FFO, indicating a strong opportunity for growth [5] - **Asset Sales**: BXP is actively selling non-producing assets, with four land parcels under contract expected to generate about $75 million in proceeds [7][50] Market Dynamics - **Regional Performance**: Manhattan is identified as the strongest market, with high demand and limited availability leading to double-digit rent increases. Other strong markets include Back Bay of Boston and Northern Virginia [15][16] - **West Coast Challenges**: The West Coast, particularly San Francisco, is experiencing slower demand, primarily driven by technology firms, with a need for more substantial growth from smaller companies to impact the market positively [18][20] Acquisition Strategy - BXP is continuously looking for acquisition opportunities, particularly in a market where they believe interesting prices may be available. However, finding suitable premier workplace assets has proven challenging due to low availability [25][27] - The company is focusing on development opportunities, with a notable project in Washington, D.C., where they have secured leases before committing to build [44][48] Future Outlook - **343 Madison Development**: BXP plans to move forward with the 343 Madison project, anticipating an average rent of over $200 per square foot, with a projected completion for tenant build-out by early 2029 [36][43] - **Residential Development**: BXP is exploring mixed-use developments and residential projects, leveraging their land holdings in suburban areas to meet housing demand [56][58] Key Risks and Considerations - The company acknowledges potential market volatility and external factors such as tariffs and policy changes that could impact leasing and development activities [60] Conclusion - BXP is positioned for growth with strong leasing activity, a robust development pipeline, and strategic asset sales, while navigating challenges in certain markets and focusing on future opportunities in both commercial and residential sectors [8][60]

Financial Data and Key Metrics Changes - The company reported normalized FFO of 84¢ per share, representing nearly 8% year-over-year growth [26] - Total same store cash NOI grew by 7%, led by SHOP increasing approximately 14% [27] - The company expects 7% normalized FFO per share growth for 2025 [5][9] Business Line Data and Key Metrics Changes - Senior housing operating portfolio (SHOP) delivered 14% year-over-year cash same store NOI growth, driven by increases in occupancy and rate [5][12] - Outpatient medical and research business reported same store cash NOI growth of 1.3% year-over-year [27] - The outpatient medical occupancy increased by 30 basis points year-over-year, with new leasing increasing by 9% [27] Market Data and Key Metrics Changes - The 80+ population is experiencing its highest growth, with an increase of about half a million people this year and 900,000 annually between 2027 and 2030 [6] - The number of new senior housing units started in Q1 2025 was the lowest on record at only 1,287 units [6] - The company’s communities are located in markets with over a thousand basis points of expected net absorption in the coming years [7] Company Strategy and Development Direction - The company is focused on delivering superior multiyear growth through internal and external expansion in senior housing [4] - The investment strategy is centered on senior housing acquisitions, with an increased full-year volume expectation to $1.5 billion [7][30] - The company aims to enhance its portfolio composition through acquisitions, dispositions, and operational improvements [16][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a high degree of macroeconomic uncertainty but believes that senior housing remains a top asset class within real estate [87] - The company is optimistic about strong demand trends and a favorable supply picture, which should benefit them for an extended period [87][88] - Management expects strong move-ins during the key selling season, which runs from Q2 through September [88] Other Important Information - The company has improved its credit profile, with a Q1 net debt to EBITDA of 5.7 times, representing a 30 basis point improvement from year-end 2024 [30] - The liquidity position is robust, with available liquidity of $3.6 billion as of April 2025 [31] - The company has completed over 250 community redevelopment projects in the past two and a half years [20] Q&A Session Summary Question: Can you provide insights on the dynamics of occupancy and margin expansion? - Management indicated that reaching 90% occupancy typically results in around 50% incremental margin, with 70% incremental margin when reaching 100% occupancy [36][37] Question: How is the Canadian portfolio performing at high occupancy? - The Canadian portfolio has shown double-digit NOI growth even at 97% occupancy, indicating that growth can still be achieved at high occupancy levels [40][41] Question: What is the status of the Brookdale assets transitioning to the SHOP portfolio? - The Brookdale communities transitioning to new operators are outperforming those remaining in the lease structure, and management is optimistic about their future performance [66][68] Question: What are the expectations regarding clinical move-outs and their impact on occupancy? - Management noted that clinical move-outs are unpredictable and not correlated with specific trends, but move-in activity remains strong [75][76] Question: Can you elaborate on the pricing power and expectations for the year? - Pricing has been strong, with internal rent increases and favorable street rate trends, indicating good pricing power across the board [80][82]