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BXP’s quarterly results reflect higher expenses impacting the performance, though revenues improved year over year. BXP also issued its guidance for 2026 FFO per share.
Quarterly lease revenues were $809.2 million, up 1.4% year over year. The Zacks Consensus Estimate was pegged at $814.7 million. Total revenues increased 2.2% from the prior-year quarter to $877.1 million.
For 2025, Boston Properties reported an FFO per share of $6.85, which lagged the Zacks Consensus Estimate of $6.90. The figure compared unfavorably with the prior year’s $7.10. Lease revenues of $3.24 billion met the consensus estimate, increasing 1.9% year over year.
BXP’s Fourth Quarter in Detail
Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $810.3 million, which rose 1.7% year over year. For the hotel & residential segment, the metric aggregated $17.6 million, indicating a 1.4% decrease year over year. On a consolidated basis, BXP’s rental revenues (excluding termination income) came in at $827.9 million, up 1.6% year over year.
BXP’s share of the same-property net operating income (NOI) on a cash basis (excluding termination income) totaled $454.2 million, which increased 1.3% from the prior-year quarter.
Its share of EBITDAre (on a cash basis), as of Dec. 31, 2025, was $461.6 million, down 3.1% from $476.4 million as of Dec. 31, 2024.
BXP’s in-service properties occupancy increased 70 basis points (bps) sequentially to 86.7%, though it declined 80 bps year over year.
However, rental expenses rose 5.1% to $339.7 million, and general and administrative expenses surged 16.3% to $37.8 million.
BXP’s Portfolio Activity
In line with its strategic asset sales plan highlighted on September's Investor Day, BXP completed the sale of four land parcels for a gross sales price totaling $141.3 million in the fourth quarter of 2025. The company also sold two residential projects for a gross sales price of $407.5 million. The office REIT disposed of non-strategic offices worth a gross sales price of $341.5 million.
BXP also acquired 2100 M Street in Washington, DC, for $55 million in the fourth quarter of 2025. The company plans to demolish and redevelop the asset into an approximately 320,000-square-foot premium workplace.
Balance Sheet Position of BXP
Boston Properties exited the fourth quarter of 2025 with cash and cash equivalents of $1.48 billion, up from $861.1 million as of Sept. 30, 2025.
BXP’s share of net debt to EBITDAre, annualized, was 7.86 as of Dec. 31, 2025, down from 8.21 as of Sept. 30, 2025.
2026 Guidance by BXP
Boston Properties projects FFO per share for the first quarter of 2026 to be in the range of $1.56-$1.58.
For 2026, FFO per share is expected in the band of $6.88-$7.04. The Zacks Consensus Estimate for the same is currently pegged at $7.01, which lies within the guided range.
BXP estimates the change in its share of the same-property NOI on a cash basis (excluding termination income) to be within 0.50% for 2026. The average in-service portfolio occupancy is expected in the band of 87.5-88.5%.
We now look forward to the earnings releases of other REITs like Healthpeak Properties (DOC - Free Report) and Digital Realty Trust (DLR - Free Report) , slated to report on Feb. 2 and Feb. 5, respectively.
The Zacks Consensus Estimate for Healthpeak’s fourth-quarter 2025 FFO per share stands at 45 cents, which indicates a 2.2% dip year over year. DOC currently has a Zacks Rank #3.
The Zacks Consensus Estimate for Digital Realty Trust’s fourth-quarter 2025 FFO per share is pegged at $1.83, which implies a 5.8% year-over-year increase. DLR currently carries a Zacks Rank #2 (Buy).
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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Boston Properties' Q4 Revenues and FFO Miss Estimates
Key Takeaways
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2025 funds from operations (FFO) per share of $1.76 missed the Zacks Consensus Estimate of $1.80. Moreover, the reported figure fell 1.7% year over year.
BXP’s quarterly results reflect higher expenses impacting the performance, though revenues improved year over year. BXP also issued its guidance for 2026 FFO per share.
Quarterly lease revenues were $809.2 million, up 1.4% year over year. The Zacks Consensus Estimate was pegged at $814.7 million. Total revenues increased 2.2% from the prior-year quarter to $877.1 million.
For 2025, Boston Properties reported an FFO per share of $6.85, which lagged the Zacks Consensus Estimate of $6.90. The figure compared unfavorably with the prior year’s $7.10. Lease revenues of $3.24 billion met the consensus estimate, increasing 1.9% year over year.
BXP’s Fourth Quarter in Detail
Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $810.3 million, which rose 1.7% year over year. For the hotel & residential segment, the metric aggregated $17.6 million, indicating a 1.4% decrease year over year. On a consolidated basis, BXP’s rental revenues (excluding termination income) came in at $827.9 million, up 1.6% year over year.
BXP’s share of the same-property net operating income (NOI) on a cash basis (excluding termination income) totaled $454.2 million, which increased 1.3% from the prior-year quarter.
Its share of EBITDAre (on a cash basis), as of Dec. 31, 2025, was $461.6 million, down 3.1% from $476.4 million as of Dec. 31, 2024.
BXP’s in-service properties occupancy increased 70 basis points (bps) sequentially to 86.7%, though it declined 80 bps year over year.
However, rental expenses rose 5.1% to $339.7 million, and general and administrative expenses surged 16.3% to $37.8 million.
BXP’s Portfolio Activity
In line with its strategic asset sales plan highlighted on September's Investor Day, BXP completed the sale of four land parcels for a gross sales price totaling $141.3 million in the fourth quarter of 2025. The company also sold two residential projects for a gross sales price of $407.5 million. The office REIT disposed of non-strategic offices worth a gross sales price of $341.5 million.
BXP also acquired 2100 M Street in Washington, DC, for $55 million in the fourth quarter of 2025. The company plans to demolish and redevelop the asset into an approximately 320,000-square-foot premium workplace.
Balance Sheet Position of BXP
Boston Properties exited the fourth quarter of 2025 with cash and cash equivalents of $1.48 billion, up from $861.1 million as of Sept. 30, 2025.
BXP’s share of net debt to EBITDAre, annualized, was 7.86 as of Dec. 31, 2025, down from 8.21 as of Sept. 30, 2025.
2026 Guidance by BXP
Boston Properties projects FFO per share for the first quarter of 2026 to be in the range of $1.56-$1.58.
For 2026, FFO per share is expected in the band of $6.88-$7.04. The Zacks Consensus Estimate for the same is currently pegged at $7.01, which lies within the guided range.
BXP estimates the change in its share of the same-property NOI on a cash basis (excluding termination income) to be within 0.50% for 2026. The average in-service portfolio occupancy is expected in the band of 87.5-88.5%.
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-eps-surprise-chart | BXP, Inc. Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs like Healthpeak Properties (DOC - Free Report) and Digital Realty Trust (DLR - Free Report) , slated to report on Feb. 2 and Feb. 5, respectively.
The Zacks Consensus Estimate for Healthpeak’s fourth-quarter 2025 FFO per share stands at 45 cents, which indicates a 2.2% dip year over year. DOC currently has a Zacks Rank #3.
The Zacks Consensus Estimate for Digital Realty Trust’s fourth-quarter 2025 FFO per share is pegged at $1.83, which implies a 5.8% year-over-year increase. DLR currently carries a Zacks Rank #2 (Buy).
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.