Core Viewpoint - Boston Properties (BXP) shares have increased by approximately 6.3% over the past month, outperforming the S&P 500, but there are concerns about whether this positive trend will continue leading up to the next earnings release [1] Group 1: Earnings and Estimates - Estimates for Boston Properties have trended downward over the past month, indicating a negative shift in expectations [2][4] - The most recent earnings report highlighted that Boston Properties has a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4] Group 2: VGM Scores - Boston Properties currently holds an average Growth Score of C, a Momentum Score of F, and a Value Score of C, placing it in the middle 20% for the value investment strategy [3] - The aggregate VGM Score for Boston Properties is D, which is a key score for investors not focused on a single strategy [3] Group 3: Industry Comparison - Boston Properties is part of the Zacks REIT and Equity Trust - Other industry, where a peer, SL Green (SLG), has seen a 9.2% increase in shares over the past month [5] - SL Green reported revenues of $144.52 million for the quarter ended March 2025, reflecting a year-over-year increase of 12.7%, although its EPS was -$0.30 compared to $3.07 a year ago [5]

BXP Portfolio Overview - BXP owns 185 properties with 534 million square feet and 30 million square feet of development/redevelopment[10] - The in-service properties are 894% leased with a weighted-average lease term of 76 years[10] - BXP's share of annualized revenue is $33 billion and EBITDAre is $18 billion[10] - Funds Available for Distribution for the trailing four quarters is $9132 million[10] Leasing and Development - Signed 11 million square feet of leases in Q1 2025[13] - Total of 59 million square feet of leasing executed in the trailing four quarters, a 33% year-over-year increase[10, 13] - Active Development Pipeline is $23 billion, 62% pre-leased[18] - CBD portfolio represents ~88% of Annualized Rental Obligations, with CBD assets 927% leased[17] Financial Performance - Projected 25% compounded average annual growth (CAGR) in diluted FFO/share 2015-2025[16] - BXP's Share of Debt to BXP's Share of Market Capitalization is 569%[91] - Current dividend yield is 58%[10]

Financial Performance - Total revenue for Q1 2025 was $865,215, an increase of 3.5% from $839,439 in Q1 2024[28] - Net income attributable to BXP, Inc. for Q1 2025 was $61,177, down 23.6% from $79,883 in Q1 2024[28] - Basic earnings per common share attributable to BXP, Inc. decreased to $0.39 in Q1 2025 from $0.51 in Q1 2024[28] - Comprehensive income attributable to BXP, Inc. for Q1 2025 was $51,870, down from $97,410 in Q1 2024[30] - Net income for Q1 2025 was $86,905, a decrease from $106,604 in Q1 2024, representing a decline of approximately 18.4%[36] - The Company reported a net income attributable to BXP, Inc. of $61,177 for Q1 2025, down 23.6% from $79,883 in Q1 2024[149] - The Company’s share of Net Operating Income (NOI) for Q1 2025 was $494,778, a decrease of 0.4% from $497,680 in Q1 2024[149] - The net operating income from unconsolidated joint ventures was $32,682 for Q1 2025, down from $35,430 in Q1 2024[149] Assets and Liabilities - Total assets as of March 31, 2025, were $25,436,521, a decrease from $26,084,980 as of December 31, 2024[25] - Total liabilities decreased to $17,577,740 as of March 31, 2025, from $18,137,324 as of December 31, 2024[25] - Total stockholders' equity attributable to BXP, Inc. decreased to $5,319,942 as of March 31, 2025, from $5,413,306 as of December 31, 2024[25] - The total equity as of March 31, 2025, was $7,849,841, a decrease from $8,183,981 as of December 31, 2023[34] - Total assets decreased to $25,202,134 as of March 31, 2025, from $25,848,890 at December 31, 2024, a decline of 2.5%[42] - Total liabilities decreased to $17,577,740 as of March 31, 2025, from $18,137,324 at December 31, 2024, a reduction of 3.1%[42] Cash Flow and Investments - Cash and cash equivalents decreased significantly to $398,126 as of March 31, 2025, from $1,254,882 as of December 31, 2024[23] - Total cash provided by operating activities increased to $210,036 in Q1 2025 from $197,595 in Q1 2024, reflecting a growth of about 6.9%[36] - Cash used in investing activities was $309,143 in Q1 2025, compared to $286,619 in Q1 2024, indicating an increase of approximately 7.8%[38] - Cash and cash equivalents at the end of Q1 2025 were $479,207, down from $766,634 at the end of Q1 2024, a decrease of about 37.5%[38] - Total adjustments to reconcile net income to net cash provided by operating activities amounted to $123,131 in Q1 2025, compared to $90,991 in Q1 2024, an increase of approximately 35.2%[36] Expenses - Operating expenses for Q1 2025 totaled $616,801, an increase from $593,712 in Q1 2024[28] - Interest expense for Q1 2025 was $163,444, slightly up from $161,891 in Q1 2024[28] - The company reported a depreciation and amortization expense of $220,107 in Q1 2025, compared to $218,716 in Q1 2024, showing a marginal increase[36] - General and administrative expense for Q1 2025 was $52,284, compared to $50,018 in Q1 2024[149] Leasing and Development - The Company recognized lease revenue of $811.1 million for the three months ended March 31, 2025, compared to $788.6 million for the same period in 2024, reflecting an increase of approximately 2.7%[83] - Fixed contractual lease payments amounted to $666.2 million in Q1 2025, up from $648.9 million in Q1 2024, representing a growth of about 2.0%[83] - In Q1 2025, the company executed 91 leases totaling over 1.1 million square feet, a 25% increase in leased square footage compared to Q1 2024[188] - The development/redevelopment pipeline consists of nine properties totaling approximately 3.0 million net rentable square feet, with an estimated total cost of approximately $2.4 billion[194] Debt and Financing - Borrowings on unsecured term loans amounted to $700,000 in Q1 2025, with an equal repayment of $700,000 during the same period[38] - The company experienced a net cash used in financing activities of $756,882 in Q1 2025, which is consistent with $756,909 in Q1 2024[38] - BPLP has a total principal amount of $9.85 billion in unsecured senior notes outstanding[98] - BPLP repaid $850 million of its 3.200% senior notes due January 15, 2025, at a repayment price of approximately $863.6 million, including accrued interest[100] - The 2025 Credit Facility allows for aggregate borrowings of up to $2.95 billion, with an increased revolving line of credit from $2 billion to $2.25 billion[101] Market and Economic Conditions - The first quarter of 2025 saw a decline in U.S. GDP by 0.3%, raising concerns about potential recession and its impact on leasing demand[180] - Despite economic uncertainties, BXP's leasing pipeline remains active, with only one prospective user (8,000 square feet) opting not to proceed due to market conditions[181] - Approximately 62% of BXP's annualized rental obligations come from New York and Boston, where low availability is driving positive client behavior[185] Legal and Compliance - The Company is involved in ongoing litigation regarding the Additional Fee and Final Fee, with potential liabilities claimed by the seller amounting to $31 million plus interest[125] - The Company intends to defend against claims from Brammer Bio MA, LLC, which could result in delays and financial penalties if injunctive relief is granted[130] - BPLP is in compliance with all financial restrictions and requirements under the 2025 Credit Facility as of March 31, 2025[107]

Core Viewpoint - Chilton Capital Management's REIT Team focuses on investments in publicly traded real estate investment trusts (REITs) and related entities primarily in North America, emphasizing the advantages of liquidity, transparency, and total return characteristics of public REITs [1] Group 1: Team and Strategy - The REIT Team is led by co-portfolio managers Bruce Garrison and Matt Werner, with Garrison having over 40 years of experience in public REIT analysis [1] - The investment strategy combines real estate industry experience with traditional security analysis methods, including research and analytical depth [1] - The REIT Team manages Separately Managed Accounts (SMAs) for high net worth individuals and institutions, and serves as a sub-advisor for the West Loop Realty Fund [1] Group 2: Investment Focus - The REIT Team invests in a variety of property types, including apartments, regional malls, shopping centers, lodging, office, industrial, self-storage, data centers/cell towers, and healthcare-related facilities [1] - The focus on public securities allows for diversification across geography, sector, strategy, property, and tenant while maintaining portfolio liquidity [1] Group 3: Company Background - Chilton Capital Management, established in 1996, provides investment advisory services for registered investment companies, private clients, family offices, endowments, foundations, retirement plans, and trusts [1] - The firm is independently owned and operates within the Liberty Street family of funds, with the West Loop Realty Fund being part of the Investment Managers Series Trust [1]

Core Viewpoint - Boston Properties Inc. (BXP) reported a first-quarter 2025 funds from operations (FFO) per share of $1.64, which missed the Zacks Consensus Estimate of $1.65 and represented a 5.2% decline year over year. The results were impacted by lower occupancy despite better-than-expected revenues from healthy leasing activity, leading to a revision in the 2025 FFO guidance [1][8]. Financial Performance - Quarterly lease revenues reached $811.1 million, reflecting a 2.9% increase year over year, surpassing the Zacks Consensus Estimate of $790.9 million. Total revenues rose by 3.1% from the prior-year quarter to $865.2 million [2]. - Rental revenues for the office portfolio (excluding termination income) amounted to $799.2 million, up 1.5% year over year. The hotel and residential segment reported $21.9 million, indicating a 5.2% increase year over year. Consolidated rental revenues (excluding termination income) totaled $821.1 million, up 1.6% year over year [3]. - BXP's share of same-property net operating income (NOI) on a cash basis (excluding termination income) was $460.9 million, a 1.8% increase from the prior-year quarter. The share of EBITDAre (on a cash basis) was $455.6 million, slightly up from $452.5 million as of March 31, 2024 [4]. Occupancy and Leasing Activity - The occupancy rate for BXP's in-service properties decreased by 60 basis points sequentially to 86.9%, attributed to the lease expiration of 350,000 square feet at 200 Fifth Avenue in New York [5]. - During the first quarter, BXP executed 91 leases covering over 1.1 million square feet, a 25% increase year over year, with a weighted average lease term of 10.9 years. Additionally, BXP formed a joint venture to develop a 670-unit residential project valued at approximately $455.8 million [6]. Balance Sheet Position - At the end of the first quarter of 2025, BXP had cash and cash equivalents of $398.1 million, a decrease from $1.25 billion as of December 31, 2024. The company's share of net debt to EBITDAre, annualized, increased to 8.33 times from 7.65 times as of December 31, 2024 [7]. Guidance Revision - BXP revised its FFO per share guidance for 2025, now projecting a range of $6.80 to $6.92, down from the previous range of $6.77 to $6.95. The Zacks Consensus Estimate is currently at $6.90, which falls within the new guidance range [8]. - The company estimates a change in its share of same-property NOI on a cash basis (excluding termination income) to be between 0.50% and 1.50% for 2025 [9].

Financial Data and Key Metrics Changes - The company reported FFO per share for Q1 2025 at $1.64, which was in line with forecasts [41] - The first quarter leasing volume was over 1,100,000 square feet, 25% higher than Q1 2024, and 33% higher than the previous four quarters [8][19] - The company completed over $4.2 billion in financing activity, indicating strong access to capital [9] Business Line Data and Key Metrics Changes - The leasing activity included 467,000 square feet of leases on vacant space and 561,000 square feet of known expirations for 2025 [20] - The development pipeline saw a significant increase in pre-leasing, with 62% pre-leased at 1050 Winter Street [27] - The company is focusing on high-quality assets, with asking rents for premier workplaces over 50% higher than the broader market [12] Market Data and Key Metrics Changes - The office sales volume in Q1 was $7.6 billion, down approximately 14% from the previous year [13] - Direct vacancy for premier workplaces is just over 13%, compared to 19% for the broader market [12] - The overall mark to market on cash basis was up about 5%, with increases in Boston and flat in New York [28] Company Strategy and Development Direction - The company is focusing on high-quality office spaces and has commenced development on two significant projects, including a multifamily development in Jersey City [14][15] - The strategy includes evaluating additional asset monetization opportunities, with potential land sales generating approximately $250 million [17] - The company aims to maintain momentum in leasing and new investment activity despite a challenging market environment [18] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential impacts from tariffs and federal funding cuts but noted that client demand has remained stable [9][11] - The company anticipates that leasing demand may slow if a recession occurs, but expects interest rates to decrease [11] - Management remains optimistic about future occupancy growth, projecting only 3.9% portfolio lease rollover in 2026 and 5.1% in 2027 [19] Other Important Information - The company highlighted its leadership in sustainable business practices through its 2024 sustainability and impact report [9] - The company is actively involved in the debt capital markets, with significant refinancing and financing activities completed in Q1 [40][41] Q&A Session Summary Question: Regarding 343 Madison, how is the pre-leasing strategy being approached? - Management aims to pre-lease the building, targeting a yield of 8% and expects to make a decision on moving forward by July [49][50] Question: How confident is the company in achieving the 4 million square feet leasing plan for 2025? - Management is confident, having already executed about 1 million square feet of leasing and with a robust pipeline of additional activity [53][56] Question: What are the trends in the life science market? - Management noted a lack of new requirements for lab space but observed demand for office space from life science organizations [69] Question: What is the outlook for West Coast leasing activity? - Management indicated that while larger users have stabilized, there is increasing activity from smaller AI and tech companies seeking space [78][80] Question: How is the company addressing leverage and funding? - Management acknowledged a slight increase in leverage but expects it to moderate as developments come online and through potential asset monetization [82][85]

Financial Data and Key Metrics Changes - The company reported FFO per share for Q1 2025 at $1.64, in line with forecasts [39] - The first quarter leasing volume was over 1,100,000 square feet, which is 25% higher than Q1 2024 and 33% higher than the previous four quarters [6][7] - The company narrowed its 2025 FFO guidance range to $6.80 to $6.92 per share, reflecting increased confidence in leasing activity [43][44] Business Line Data and Key Metrics Changes - The leasing activity included 467,000 square feet on vacant space and 561,000 square feet related to known expirations in 2025, indicating a focus on near-term exposure [20] - The development pipeline saw a significant increase in pre-leasing, with a jump from 50% to 62% pre-leased on the development pipeline [24] - The company signed a 160,000 square foot lease at 1050 Winter Street, contributing to the repositioning of the building [42] Market Data and Key Metrics Changes - The office sales volume in Q1 was $7.6 billion, down approximately 14% from the previous year, indicating market volatility [11] - Direct vacancy for premier workplaces is just over 13%, compared to 19% for the broader market, highlighting the strength of high-quality assets [11] - The overall mark to market on cash basis was up about 5%, with increases in Boston and flat conditions in New York [27] Company Strategy and Development Direction - The company is focusing on high-quality assets, with a strategy to pivot from life science development to office use in response to market demand [17][22] - New developments include a 70-unit multifamily project in Jersey City and a 930,000 square foot office project at 343 Madison, with significant interest from potential tenants [13][15] - The company is evaluating additional asset monetization opportunities, including the sale of land sites expected to generate approximately $250 million [15] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential impacts from tariffs and federal funding cuts, but noted that client demand has remained stable [7][10] - The company anticipates that leasing demand may slow if a recession occurs, but expects interest rates to decrease, which could benefit occupancy [10] - Management remains optimistic about future occupancy growth, with only 3.9% portfolio lease rollover in 2026 and 5.1% in 2027 [18] Other Important Information - The company completed over $4.2 billion in financing activity, demonstrating strong access to capital [7] - The company is actively engaged in the debt capital markets, with significant refinancing and new loans completed in Q1 [38][39] - The company is experiencing increased foot traffic and retail activity in certain areas, indicating a positive trend in local markets [10] Q&A Session Summary Question: Regarding 343 Madison, how is the company sizing up the start and pre-lease? - The company aims to pre-lease the building, targeting a yield of 8% and will make a decision on moving forward by July [46][50] Question: How confident is the company in the 4 million square feet leasing plan for 2025? - The company is more than halfway to its leasing goal and is confident in occupancy growth as many leases will commence in 2025 and 2026 [54][57] Question: What are the trends in the life science market? - The company has seen little new demand for lab space but is experiencing interest from life science organizations seeking office space [70][71] Question: What is the outlook for West Coast leasing activity? - The company notes strong activity from law firms and financial services, with smaller AI companies also looking for space [78][80] Question: How is the company addressing leverage and funding? - The company acknowledges a slight increase in leverage but expects it to moderate as developments come online and income increases [82][85]

Core Insights - Boston Properties (BXP) reported revenue of $811.1 million for Q1 2025, reflecting a 2.9% increase year-over-year and a surprise of +2.56% over the Zacks Consensus Estimate of $790.85 million [1] - The company's EPS for the quarter was $1.64, compared to $0.51 in the same quarter last year, with a slight EPS surprise of -0.61% against the consensus estimate of $1.65 [1] Revenue Breakdown - Occupancy rate of in-service properties was 89.4%, exceeding the average analyst estimate of 87.4% [4] - Revenue from parking and other sources was $30.15 million, below the average estimate of $34.56 million, representing a year-over-year decline of -6.4% [4] - Hotel revenue reached $9.60 million, surpassing the average estimate of $8.81 million, with a year-over-year increase of +17.2% [4] - Revenue from development and management services was $9.78 million, exceeding the average estimate of $8.13 million, marking a significant year-over-year growth of +58.8% [4] - Lease revenue was reported at $811.10 million, compared to the average estimate of $790.82 million, indicating a year-over-year increase of +2.9% [4] Stock Performance - Over the past month, shares of Boston Properties have returned -1.4%, compared to a -0.8% 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 reported quarterly funds from operations (FFO) of $1.64 per share, missing the Zacks Consensus Estimate of $1.65 per share, and down from $1.73 per share a year ago, representing an FFO surprise of -0.61% [1] - The company posted revenues of $811.1 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.56%, compared to year-ago revenues of $788.59 million [2] - Over the last four quarters, Boston Properties has surpassed consensus revenue estimates three times [2] 分组2 - The stock has lost about 10.9% since the beginning of the year, while the S&P 500 has declined by 6% [3] - The current consensus FFO estimate for the coming quarter is $1.70 on revenues of $794.35 million, and for the current fiscal year, it is $6.90 on revenues of $3.06 billion [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Supplemental Operating and Financial Data for the Quarter Ended March 31, 2025 Exhibit 99.1 THE COMPANY BXP, Inc. (NYSE: BXP) (formerly known as Boston Properties, Inc.) ("BXP" or the "Company") is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than ...