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BXP to Post Q2 Earnings: What to Expect From the Stock?

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Key Takeaways

  • BXP's Q2 revenues are projected to rise 1.31% year over year to $801 million.
  • Higher interest expenses and lower occupancy may weigh on BXP's Q2 FFO per share.
  • BXP's strategic repositioning in core markets supports stable revenues amid leasing demand.

BXP, Inc. (BXP - Free Report) is slated to report second-quarter 2025 results on July 29, after market close. While the company’s quarterly results are likely to display a year-over-year rise in revenues, funds from operations (FFO) per share are expected to have declined.

In the last reported quarter, this office real estate investment trust (REIT) met the Zacks Consensus Estimate in terms of FFO per share. The quarterly results reflected better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter marred its year-over-year FFO per share growth.

Over the preceding four quarters, BXP’s FFO per share surpassed the Zacks Consensus Estimate once, missed once and met in the remaining periods, the average beat being 0.58%. This is depicted in the graph below:

BXP, Inc. Price and EPS Surprise

BXP, Inc. Price and EPS Surprise

BXP, Inc. price-eps-surprise | BXP, Inc. Quote

US Office Market in Q2

Per a Cushman & Wakefield report, the U.S. office demand is moving toward stabilization despite the overall economic uncertainty.

During the second quarter, though net absorption turned out to be negative, the four-quarter rolling absorption continued to improve. Out of the 92 U.S. markets tracked by Cushman & Wakefield Research, 36 experienced positive absorption, with 19 of them exceeding 100,000 square feet (sf).

Demand for high-quality offices has been accelerating, with Class A absorption turning out to be positive for half of the U.S. markets (48 of 92). Supply pressures are also decelerating due to dwindling new construction activity. The under-construction pipeline for the quarter ended June 2025 stood at 26.1 MSF, down 40% year over year and 67% below the 2010 average. At the same time, new deliveries in the second quarter were the lowest since the first quarter of 2012 at just 2.3 MSF.

However, the overall U.S. vacancy inched up marginally to 20.8%, up 20 basis points (bps) quarterly and 90 bps year over year. Moreover, sublease activities also moved up slightly by 1.6 MSF against its downtick over the past four quarters but remained 10.4% below its peak in the first quarter of 2024.

BXP’s Projections for Q2

In this U.S. office market environment, BXP is expected to have gained from the growing preference for quality office spaces among the tenants and the company's ability to offer such spaces. The company’s properties are likely to have witnessed healthy leasing activity in the second quarter. We expect BXP’s rental revenues to increase 4.3% year over year in the to-be-reported quarter.

Moreover, BXP’s strategic portfolio repositioning efforts through acquisitions and the development of properties in core markets and shedding properties in non-core markets are likely to have contributed to stable revenue generation in the reported quarter.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $801 million, suggesting an increase of 1.31% from the prior-year quarter’s reported number.

However, due to high competition and several large expirations due in the first half of the current year, occupancy is likely to have declined, affecting its performance. We estimate occupancy to decline 40 basis points to 86.5% at the end of the second quarter.

Moreover, high interest expenses are expected to have been a spoilsport for BXP during the to-be-reported quarter. We estimate a 9.4% year-over-year increase in interest expenses for the second quarter.

BXP’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for second-quarter FFO per share has been revised southward marginally to $1.67 in the past month. Also, it suggests a 5.65% decrease from the year-ago quarter’s tally.

What Our Quantitative Model Predicts for BXP

Our proven model doesn’t conclusively predict a surprise in terms of FFO per share for BXP this quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

BXP has an Earnings ESP of -0.50% and currently carries a Zacks Rank of 4 (Sell).

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT sector — American Tower (AMT - Free Report) and Cousins Properties (CUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

American Tower, scheduled to report quarterly numbers on July 29, has an Earnings ESP of +2.08% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins Properties, slated to release quarterly numbers on July 31, has an Earnings ESP of +0.36% and carries a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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