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Boston Properties Q3 Revenues & FFO Beat Estimates, '25 View Raised

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Key Takeaways

  • Boston Properties' Q3 FFO of $1.74 beat estimates but declined 3.9% year over year.
  • Leasing surged 38%, with 79 deals totaling 1.5M square feet and 7.9-year average terms.
  • BXP raised 2025 FFO guidance to $6.89-$6.92 per share, above the prior forecast range.

Boston Properties Inc.’s (BXP - Free Report)  third-quarter 2025 funds from operations (FFO) per share of $1.74 surpassed the Zacks Consensus Estimate of $1.72. However, the reported figure fell 3.9% year over year.

BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, lower occupancy during the quarter marred the performance to some extent. BXP also revised its guidance for 2025 FFO per share.

Quarterly lease revenues were $809.8 million, up 1.3% year over year. The Zacks Consensus Estimate was pegged at $807.9 million. Total revenues increased 1.4% from the prior-year quarter to $871.5 million.

BXP is witnessing solid demand for its premium office portfolio. In the third quarter, BXP signed 79 leases with more than 1.5 million square feet and a weighted average lease term of 7.9 years. The leasing activity increased 38% year over year.

BXP’s Third Quarter in Detail

Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $813.8 million, which rose 1.9% year over year. For the hotel & residential segment, the metric aggregated $26 million, indicating a 4.4% decrease year over year. On a consolidated basis, BXP’s rental revenues (excluding termination income) came in at $839.8 million, up 1.7% year over year.

BXP’s share of the same-property net operating income (NOI) on a cash basis (excluding termination income) totaled $470.9 million, which increased 2.6% from the prior-year quarter.

Its share of EBITDAre (on a cash basis), as of Sept. 30, 2025, was $460.3 million, down 2% from $469.8 million as of Sept. 30, 2024.

BXP’s in-service properties occupancy, including third quarter development deliveries, decreased 40 basis points sequentially to 86% as each of the three projects delivered in the third quarter has leases for which revenue recognition has not started in accordance with GAAP. We estimated the metric to be 86.3%.

BXP’s Portfolio Activity

In the third quarter of 2025, BXP started the vertical construction of a 46-story, 93,000-square-foot premier workplace — 343 Madison Avenue in Midtown Manhattan.

During the quarter, the company fully placed in service three development projects. 1050 Winter Street, spanning a 162,000-square-foot office building in Boston, MA, is 100% leased. Reston Next Office Phase II, stretching around 87,000 square feet, is a boutique premier workplace in Reston, VA, 92% leased. 360 Park Avenue South, around 448,000 square feet, is a premier office in New York City, NY, 38% leased.

BXP also completed the sale of three land parcels for a gross sale price totaling $42 million.

Balance Sheet Position of BXP

Boston Properties exited the third quarter of 2025 with cash and cash equivalents of $861.1 million, up from $447 million as of June 302025.

BXP’s share of net debt to EBITDAre, annualized, was 8.21 as of Sept. 30, 2025, up from 8.18 as of June 30, 2025.

2025 Guidance Revision by BXP

For 2025, BXP has revised its guidance for FFO per share, which is now expected in the band of $6.89-$6.92, up from the earlier guided range of $6.84-$6.92. The Zacks Consensus Estimate is currently pegged at $6.87, which lies below the guided range.

BXP’s Zacks Rank

Boston Properties currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BXP, Inc. Price, Consensus and EPS Surprise

BXP, Inc. Price, Consensus and EPS Surprise

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

Upcoming Earnings Releases

We now look forward to the earnings releases of other REITs like VICI Properties (VICI - Free Report) and Federal Realty Investment Trust (FRT - Free Report) , slated to report on Oct. 30 and Oct. 31, respectively.

The Zacks Consensus Estimate for VICI Properties’ third-quarter 2025 FFO per share is pegged at 59 cents, which implies a 3.5% year-over-year increase. VICI currently carries a Zacks Rank #2 (Buy).

The consensus estimate for Federal Realty’s third-quarter 2025 FFO per share stands at $1.76, which indicates 2.9% growth year over year. FRT currently has a Zacks Rank #3.

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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