BXP (NYSE:BXP) 2025 Earnings Call Presentation

BXP Strategy & Market Trends - BXP focuses on high-quality, sustainable assets in the top 15% of their local markets, leased at premium rents[14] - Hybrid office attendance policies are at 41% as of Q2 2025, compared to 78% in Q2 2023, showing a shift back to in-office work[31] - Premier assets outperform the broader market, with a 12.5% direct vacancy rate compared to 20% for non-premier buildings[35] - Average asking rent for premier assets is $95.29, a 50% premium over non-premier assets at $63.62[40] - AI companies are driving leasing demand in San Francisco, accounting for 26.8% of total leasing activity in 2025, totaling 1.63 million square feet[61] Financial Strategy & Asset Management - BXP projects net proceeds of nearly $1.9 billion from asset sales over the next 3 years[125] - The dividend was reset to $0.70 per share quarterly, or $2.80 per share annualized, expected to retain ~$500 million through 2027[271] - BXP anticipates securing a financial partner for 343 Madison Avenue, with a partner contribution of $300 million to $500 million[134] - BXP aims to reduce leverage, targeting a pro forma leverage ratio of 7.08x by year-end 2027, compared to 8.18x currently[322] Portfolio & Occupancy - BXP's in-service portfolio is projected to reach 49.8 million square feet by the end of 2026[161] - Low lease expirations in 2026 and 2027, with only 3.9% and 5.0% of total square footage expiring, respectively, present an opportunity for occupancy growth[104]