Core Insights - Boston Properties Inc. (BXP) reported second-quarter 2025 funds from operations (FFO) per share of $1.71, exceeding the Zacks Consensus Estimate of $1.67, but down 3.4% year over year [1][9] - The quarterly results were driven by better-than-expected revenues due to strong leasing activity, although lower occupancy and increased interest expenses negatively impacted year-over-year FFO per share growth [1][5] - BXP revised its guidance for 2025 FFO per share to a range of $6.84-$6.92, up from the previous range of $6.80-$6.92 [10] Financial Performance - Quarterly lease revenues reached $805.9 million, reflecting a 1.9% year-over-year increase, while total revenues rose 2.1% to $868.5 million [2] - Rental revenues for the office portfolio were $806.7 million, up 1% year over year, and the hotel & residential segment reported $27.3 million, also indicating a 1% increase [3] - BXP's share of same-property net operating income (NOI) on a cash basis was $467.9 million, a 1.7% increase from the prior year, while EBITDAre on a cash basis was $461.8 million, slightly down from $466.2 million [4] Occupancy and Expenses - The occupancy rate for in-service properties decreased by 50 basis points to 86.4%, attributed to the lease expiration of 360,000 square feet in the Boston area [5] - Interest expenses increased by 8.8% year over year to $162.8 million [5] Portfolio Activity - During the second quarter, BXP executed 91 leases covering over 1.1 million square feet, with a weighted average lease term of 9.4 years [6] - The company initiated the redevelopment of 17 Hartwell Avenue into a 312-unit residential project in Lexington, MA, expected to be completed by mid-2027 [6] Balance Sheet - BXP ended the second quarter with cash and cash equivalents of $447 million, an increase from $398.1 million at the end of the first quarter [7] - The company's share of net debt to EBITDAre, annualized, improved to 8.18 from 8.33 [7] Guidance - For the third quarter of 2025, BXP projects FFO per share to be between $1.69 and $1.71 [8] - The company estimates a change in its share of same-property NOI on a cash basis to be between 1.00% and 1.50% for 2025 [10]