Core Insights - Boston Properties (BXP) reported revenue of $809.15 million for the quarter ended December 2025, reflecting a year-over-year increase of 1.4% but a revenue surprise of -0.68% compared to the Zacks Consensus Estimate of $814.66 million [1] - The company's EPS was $1.56, significantly higher than the $0.49 reported in the same quarter last year, but fell short of the consensus estimate of $1.80, resulting in an EPS surprise of -13.52% [1] Financial Performance Metrics - The occupancy rate of in-service properties was reported at 86.7%, slightly exceeding the average estimate of 86.3% from three analysts [4] - Revenue from parking and other services, including insurance proceeds, was $42.88 million, surpassing the average estimate of $35.1 million from five analysts, marking a year-over-year increase of 25.9% [4] - Revenue from development and management services was $8.64 million, slightly below the average estimate of $9.04 million from five analysts, representing a year-over-year decrease of 1.6% [4] - Hotel revenue was reported at $12.46 million, which was lower than the average estimate of $13.71 million from four analysts, indicating a year-over-year decline of 5.2% [4] - The lease revenue of $809.15 million was compared to the average estimate of $814.61 million based on four analysts, showing a year-over-year increase of 1.4% [4] - The diluted net earnings per share were reported at $1.56, significantly higher than the average estimate of $0.59 from five analysts [4] Stock Performance - Over the past month, shares of Boston Properties have returned -6.1%, contrasting with a +0.4% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Boston Properties (BXP) reported quarterly funds from operations (FFO) of $1.56 per share, missing the Zacks Consensus Estimate of $1.8 per share, and down from $1.79 per share a year ago, representing an FFO surprise of -13.52% [1] - The company posted revenues of $809.15 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 0.68%, compared to year-ago revenues of $798.19 million [2] - Over the last four quarters, Boston Properties has surpassed consensus FFO estimates two times and topped consensus revenue estimates three times [2] 分组2 - The stock has lost about 4% since the beginning of the year, while the S&P 500 has gained 1.5% [3] - The company's FFO outlook is crucial for investors, as it includes current consensus FFO expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus FFO estimate for the coming quarter is $1.63 on revenues of $813.04 million, and for the current fiscal year, it is $7.01 on revenues of $3.3 billion [7] 分组3 - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the bottom 34% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8] - The estimate revisions trend for Boston Properties was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Portfolio Overview - As of December 31, 2025, BXP's portfolio totals 52.6 million square feet across 179 properties, including 8 properties under construction/redevelopment[4] - Total assets as of December 31, 2025, were $26,166,164,000, an increase from $25,999,482,000 as of September 30, 2025[25] - The total square footage for tenant improvements and lease commissions was 1,219,771 square feet, with a cost of $128.74 per square foot for the three months ended December 31, 2025[41] - The company has a total of 15,232,000 square feet of owned land parcels and properties held for redevelopment, including 11,140,000 square feet designated for office use[50] - The total square footage of properties under construction is 3,522,100, with an estimated future equity requirement of $76,147[46] Financial Performance - The company reported a closing stock price of $67.48 per share and a market capitalization of $28.5 billion[15] - Net income attributable to BXP, Inc. for Q4 2025 was $248,486,000, compared to a loss of $121,712,000 in Q3 2025[21] - Total revenue for Q4 2025 was $877,097,000, an increase from $871,510,000 in Q3 2025[21] - FFO attributable to BXP, Inc. for Q4 2025 was $280,155,000, with diluted FFO per share at $1.76, up from $1.74 in Q3 2025[21] - The company reported a net loss of $688,503,000, primarily due to impairment losses on real estate totaling $745,224,000[112] Dividends and Returns - BXP's quarterly dividend is $0.70 per share, resulting in an annualized dividend of $2.80 per share and a dividend yield of 4.1%[15] - The company aims to maximize return on investment by focusing on premier workplaces in dynamic gateway markets such as Boston, Los Angeles, and New York[17] Sustainability and Innovation - BXP has earned a thirteenth consecutive GRESB "Green Star" recognition and the highest GRESB 5-star Rating, highlighting its commitment to sustainability[4] - The company emphasizes maintaining a leadership position in sustainability innovation to minimize emissions from its portfolio[17] Market Conditions and Projections - The company anticipates diluted earnings per share (EPS) and diluted funds from operations (FFO) per common share for Q1 and full year 2026, reflecting current market conditions[18] - Projected diluted EPS for Q1 2026 is estimated to be between $0.32 and $0.34, with full year 2026 projected EPS ranging from $2.08 to $2.29[19] - Average in-service portfolio occupancy is projected to be between 87.50% and 88.50% for full year 2026[20] - BXP's share of Same Property net operating income is expected to increase by 1.25% to 2.25% for full year 2026[20] Debt and Financial Ratios - BXP has maintained a strong balance sheet with unsecured senior debt ratings of BBB (S&P) and Baa2 (Moody's)[15] - Consolidated debt as of December 31, 2025, was $16,609,483,000, with a debt-to-market capitalization ratio of 58.20%[21] - The weighted average interest rate for consolidated debt was 4.04%, with unsecured debt comprising 74.23% of total debt[90] - Interest coverage ratio stood at 3.05, significantly above the required minimum of 1.50x[95] Operational Metrics - The company reported a cash NOI (excluding termination income) of $467,672, reflecting an increase of $11,151 or 2.4% from $456,521 in the same period last year[38] - Total capital expenditures for the three months ended December 31, 2025, amounted to $29,394, down from $42,281 in the previous quarter[40] - The company recognized impairment losses of $16,902,000 for the quarter, a decrease from $68,901,000 in the previous quarter[30] Leasing and Occupancy - The average rental rate per occupied square foot in San Francisco increased by 4.41% year-over-year to $3.79, with average physical occupancy improving to 92.29%[61] - The Boston CBD office properties maintained a high occupancy rate of 97.5% with an average obligation per occupied square foot of $80.84[63] - The company has taken approximately 361,000 net rentable square feet out of service for future redevelopment[69] Future Outlook - The company plans to continue focusing on market expansion and new product development to enhance future revenue streams[112] - The company anticipates a significant increase in annualized rental obligations to $279,134,720 for the period thereafter, averaging $93.58 per square foot[133]

BOSTON--(BUSINESS WIRE)--BXP, Inc. (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported results today for the fourth quarter and year ended December 31, 2025. Financial Highlights Fourth Quarter 2025: Revenue increased 2.2% to $877.1 million for the quarter ended December 31, 2025, compared to $858.6 million for the quarter ended December 31, 2024. Net income (loss) attributable to BXP, Inc. of $248.5 million, or $1.56 per d. ...

Core Insights - BXP, Inc. is well-positioned for long-term growth due to its diversified tenant base, strategic expansions, and solid balance sheet, despite facing high competition and risks from rising construction costs [2][8]. Supporting Factors - BXP's portfolio consists of premier office assets in high-rent, high-barrier-to-entry markets, allowing for stable rental revenues even during economic downturns [3]. - The return-to-office policies are expected to increase demand for BXP's high-quality office properties [3]. - In January 2026, BXP signed a long-term lease with Starr at 343 Madison Avenue, and in Q3 2025, executed 79 leases totaling approximately 1.5 million square feet with an average lease term of 7.9 years, indicating sustained demand for quality office spaces [4]. - Long-term leases with tenants like Salesforce, Google, and Microsoft ensure stable cash flows, while the conversion of office buildings to life science spaces addresses strong demand in that sector [5]. - BXP is executing a capital reallocation strategy, enhancing portfolio quality through acquisitions and developments in core markets while shedding non-core properties [6]. - The company has a development pipeline with eight properties and an estimated total investment of around $3.9 billion, which supports long-term growth [7]. - BXP's balance sheet is strong, with cash and cash equivalents of $861.1 million as of Q3 2025, providing flexibility to navigate economic uncertainties [8]. Challenges - Competition from other office property developers and operators, such as SL Green and Vornado, poses challenges for BXP in retaining tenants at higher rents and limits pricing power [9]. - The large development pipeline, while promising for growth, also exposes the company to risks related to rising construction costs and lease-up concerns [10].

Core Insights - Boston Properties, Inc. (BXP) is a leading office real estate investment trust (REIT) focusing on Class A office spaces in key gateway markets, competing with other major office REITs as the office market recovers [1] - The company is expected to report earnings per share (EPS) of $1.80 and revenue of approximately $872 million in its upcoming quarterly earnings release [2][5] - BXP has achieved over $1 billion in asset sales in the second half of 2025, concentrating on premier gateway offices, with analysts predicting revenues of around $815 million and an FFO per share of $1.80 [3][5] Financial Performance - The anticipated EPS for BXP is $1.80, with revenue expectations around $872 million, reflecting a positive outlook as leasing activities improve and vacancy rates stabilize [2][5] - In the last quarter, BXP reported an FFO per share of $1.74, surpassing the Zacks Consensus Estimate of $1.72 due to stronger-than-expected revenues [3] Market Conditions - The office REIT sector is experiencing a turning point with improving macroeconomic conditions, stability in interest rates, and moderating construction costs expected to support fundamentals [4] - The debt-to-equity ratio for BXP is high at 3.46, indicating significant debt compared to equity, while the current ratio of 1.84 suggests good liquidity to cover short-term liabilities [4] - Regional variations and capital market dynamics will continue to influence earnings and valuations, making the upcoming earnings report critical for assessing leasing velocity and rent growth [4]

Core Viewpoint - Office REITs are at a turning point as macroeconomic conditions improve, with demand recovering due to stronger employment and a shift towards higher-quality office spaces [2][4]. Group 1: Office REITs Overview - Several office REITs, including BXP Inc., Cousins Properties, SL Green, and Highwoods Properties, are set to report earnings soon, which will provide insights into leasing velocity and rent growth [3]. - The office real estate market is showing signs of recovery, with national net absorption turning positive and Class A absorption particularly strong [4]. Group 2: Market Fundamentals - Overall vacancy rates have stabilized near 20.5%, with a slight increase of 5 basis points from the previous quarter, marking the smallest annualized rise since 2020 [4]. - Asking rents have increased to approximately $38.37 per square foot, while sublease inventories have significantly declined, tightening available space in major markets [4][5]. Group 3: Construction Activity - Construction activity remains muted, with less than 20 million square feet under construction and a 35% decline in the construction pipeline in 2025 [5]. - The reduction in supply, combined with concentrated demand in gateway and Sun Belt markets, is supporting a firmer leasing environment [5][6]. Group 4: Company-Specific Insights - BXP Inc. is the largest publicly traded U.S. office REIT, managing a portfolio of 54.6 million square feet across 187 properties, and has completed asset dispositions worth over $1 billion [7][8]. - Cousins Properties is experiencing higher leasing activity in its Class A office assets due to tenant preferences for premium spaces, with a fourth-quarter revenue estimate of $248.65 million, indicating a 12.91% year-over-year increase [10][11]. - SL Green, focused on Manhattan office assets, is facing intense competition and is offering rent concessions, which may impact revenue growth; its fourth-quarter revenue estimate is $147.03 million, reflecting a 5.32% year-over-year rise [12][13]. - Highwoods Properties, with a strong focus on the Sun Belt, is well-positioned to benefit from tenant preferences for quality office spaces, with a fourth-quarter revenue estimate of $208.23 million, suggesting a 1.31% year-over-year rise [14][15].

Core Insights - Office REITs are at a turning point as macro conditions improve, with demand recovering in 2025 due to stronger office-using employment and a shift towards higher-quality spaces [1] - Upcoming earnings reports from several office REITs will provide insights into leasing velocity and rent growth, helping investors distinguish between market-wide trends and company-specific strategies [2] Market Fundamentals - Cushman & Wakefield's Q4 2025 report indicates positive national net absorption, particularly strong for Class A spaces, with overall vacancy stabilizing near 20.5%, a minimal increase of 30 basis points year-over-year [3] - Construction activity is low, with the pipeline down approximately 35% in 2025, leading to a tighter leasing environment as demand concentrates in gateway and Sun Belt markets [4] - Vacancy rates are nearing a peak as occupier demand accelerates, especially for quality assets, while sublease inventories continue to decline [5] Company-Specific Insights BXP Inc. (BXP) - BXP, the largest publicly traded U.S. office REIT, focuses on high-quality workplaces in major gateway markets, managing a portfolio of 54.6 million square feet across 187 properties [6] - The company has completed asset dispositions exceeding $1 billion as part of a strategic plan, with a Zacks Consensus Estimate for Q4 2025 revenues at $814.66 million, reflecting a 2.06% year-over-year increase [7][8] Cousins Properties (CUZ) - Cousins Properties benefits from strong leasing activity in high-growth Sun Belt markets, with a diverse tenant base supporting steady cash flows [9][10] - The company is set to report Q4 2025 earnings on Feb. 5, with a revenue estimate of $248.65 million, indicating a 12.91% year-over-year increase [11] SL Green Realty (SLG) - SL Green focuses on Manhattan office assets, operating a portfolio of 30.7 million square feet across 53 buildings, but faces competition and is offering rent concessions, impacting revenue growth [12][13] - The company is expected to announce Q4 2025 earnings on Jan. 28, with a revenue estimate of $147.03 million, suggesting a 5.32% year-over-year rise, but a decrease in FFO per share by 24.14% [14] Highwoods Properties (HIW) - Highwoods Properties, focused on the Sun Belt, owns and operates premier office assets, benefiting from regional growth trends [17] - The company is set to report Q4 2025 earnings on Feb. 10, with a revenue estimate of $208.23 million, indicating a 1.31% year-over-year rise [19]

Core Viewpoint - BXP, Inc. is expected to report a year-over-year increase in revenues and funds from operations (FFO) per share for the fourth quarter of 2025, with anticipated revenues of $814.7 million and FFO per share of $1.80, reflecting strong leasing activity and demand for premium office assets [1][9]. Company Performance - In the last reported quarter, BXP's FFO per share was $1.74, exceeding the Zacks Consensus Estimate of $1.72, driven by better-than-expected revenues from healthy leasing activity [1]. - Over the past four quarters, BXP's FFO per share surpassed the Zacks Consensus Estimate twice, missed once, and met once, with an average beat of 0.74% [2]. Industry Context - The U.S. office market saw a positive shift in demand in the second half of 2025, with net absorption turning positive in Q4 2025 after 12 consecutive quarters of declines [2][3]. - Class A office assets experienced significant demand, with absorption totaling 3.5 million square feet in Q4 2025 and 9.2 million square feet for the full year [4]. - The national vacancy rate stood at 20.5% in Q4 2025, reflecting a slight increase of 30 basis points year-over-year, while sublease availability decreased in about 60% of markets [5]. Strategic Initiatives - BXP is enhancing its portfolio through repositioning initiatives, including acquisitions and development in core markets, which is expected to positively impact leasing activity and revenue growth [6][7]. - The company is well-positioned to benefit from the increasing preference for quality office spaces among tenants, supported by return-to-office policies from various companies [6]. Financial Estimates - The Zacks Consensus Estimate for BXP's fourth-quarter revenues is $814.7 million, indicating a 2.1% increase from the previous year, while the full-year 2025 revenue estimate is $3.24 billion, reflecting a 2% year-over-year growth [8]. - The consensus estimate for full-year 2025 FFO per share has increased by a cent to $6.90 over the past week [10].

Distribution Summary - The total distribution per share for the year 2025 is set at $0.980000 for the first three quarters and $0.700000 for the last quarter [1][2] - The total distribution allocable to 2025 is $4.340000, with taxable ordinary dividends amounting to $3.640871 [3] - Qualified dividends for 2025 are reported at $2.349064, while short-term capital gains are $0.022621 [3] Tax Implications - The 2025 taxable ordinary dividends include a subset of amounts that are also reported as Section 897 gains attributable to dispositions of USRPIs [4] - 100% of the distributions reported as 2025 total capital gain distributions are derived from sales of assets that generated Section 1231 gains or were held for more than three years [4] - Unrecaptured Section 1250 gain is included in the total capital gain distribution amount for 2025 [4]