Financial Data and Key Metrics Changes - For 2025, total consolidated revenues were reported at $3.5 billion, with full year FFO of $1.2 billion, equating to $6.85 per share. The fourth quarter FFO was $1.76 per share, which was $0.05 below the midpoint of guidance due to higher G&A expenses and non-cash reserves for accrued rental income [41][42] - The company ended 2025 with an in-service occupancy of 86.7% and expects to increase this to approximately 89% by the end of 2026, indicating a meaningful increase in occupancy [45] Business Line Data and Key Metrics Changes - The company completed over 1.8 million sq ft of leasing in Q4 and over 5.5 million sq ft for the full year 2025, exceeding annual goals [5] - Leasing activity is expected to continue positively into 2026, with a forecast of 4 million sq ft of leasing for the year [25] Market Data and Key Metrics Changes - Direct vacancy for premier workplaces in the five markets where the company competes is reported at 11.6%, significantly lower than the broader market [8] - The company noted a 10% increase in office visits nationwide from December 2024 to December 2025, indicating a recovery in office utilization [6] Company Strategy and Development Direction - The company aims to optimize its portfolio through asset sales, targeting $1.9 billion in net proceeds by 2028, with $1 billion already achieved [9][10] - The strategy includes reallocating capital to premier workplace assets and CBD locations, with new developments launched in key markets [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing environment, citing strong demand from clients, particularly in the AI sector, which is driving growth in leasing activity [6][77] - The company anticipates that the positive trends in leasing will continue, supported by expected earnings growth for companies in the S&P 500 and Russell 2000 indices [5] Other Important Information - The company reported gains on asset sales of $208 million on $890 million of sales in Q4, which will enhance liquidity and be used to reduce debt [43] - The company has a development pipeline of 3.5 million sq ft and $3.7 billion of investment, with several projects expected to deliver strong external growth [18] Q&A Session Summary Question: Inquiry about potential additional asset dispositions - Management confirmed that they are sticking to the original forecast of $1.9 billion in sales and are open to additional sales if attractive prices are offered, emphasizing that many sales are land assets which are accretive [61][62][63] Question: Conversion rates for leasing negotiations - The company reported a conversion rate of approximately 95% for deals in negotiation, with expectations to lease 4 million sq ft of space in 2026 [72] Question: Impact of AI on leasing needs - Management indicated that AI has not negatively impacted leasing needs within their portfolio, with significant leasing activity observed, particularly from AI companies [77]

Company Overview - BXP, Inc. is the largest publicly traded developer, owner, and manager of premier workplaces, valued at $11.3 billion by market cap, operating as a real estate investment trust (REIT) with properties totaling 53.5 million square feet across 186 properties [1] - BXP is categorized as a large-cap stock, emphasizing its size, influence, and dominance within the REIT - office industry, with high-quality properties in prime markets leading to strong occupancy rates and premium rents [2] Stock Performance - BXP's stock has experienced a decline of 15.1% from its 52-week high of $83.29, reached on December 9, 2024, and has fallen 10.4% over the past three months, underperforming the iShares Cohen & Steers REIT ETF's (ICF) 2.5% losses [3] - Over a six-month period, BXP shares fell 2.9%, outperforming ICF's losses of 3.2%, but the stock dipped 12.3% over the past 52 weeks, underperforming ICF's 5.5% drop [4] Financial Results - In Q3, BXP reported a funds from operations (FFO) of $1.74 per share, exceeding Wall Street expectations of $1.72 per share, with revenue of $871.5 million, reflecting a year-over-year increase of 1.4% [5] - The company anticipates full-year FFO in the range of $6.89 to $6.92 per share [5] Analyst Sentiment - Wall Street analysts maintain a reasonably bullish outlook on BXP, with a consensus "Moderate Buy" rating from 23 analysts and a mean price target of $79.05, indicating a potential upside of 11.8% from current price levels [6]