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Results reflected higher occupancy and same-property net operating income (NOI) growth,which supported the FFO beat. Total portfolio occupancy climbed 100 basis points sequentially to 88.4%.
Lease revenues increased 3.2% year over year to $831.68 million and surpassed the consensus mark of $812.49 million. Total revenues increased 3.1% from the prior-year quarter to $895.7 million.
In response to the above results, BXP shares were trading close to 5% higher in the early hours of today’s market session.
BXP’s Second Quarter in Detail
Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $839.23 million, which rose 3.3% year over year. For the hotel & residential segment, the metric aggregated $18.58 million, indicating a 2.5% increase year over year. On a consolidated basis, BXP’s rental revenues (excluding termination income) came in at $857.82 million, up 3.3% year over year.
BXP's share of same-property NOI, excluding termination income, increased 3.5% year over year to $486.81 million. On a cash basis, the metric improved marginally to $454.97 million.
Boston Properties Posts Strong Leasing Volume
The office REIT executed 106 leases covering approximately 1.8 million square feet, with a weighted-average lease term of 9.9 years. The leasing volume equaled about 129% of BXP's historical 10-year second-quarter average.
Notable commitments included an approximately 148,000-square-foot lease with McDermott Will & Schulte at 343 Madison Avenue. That agreement lifted the project's pre-leased level to 50%. Boston Dynamics also signed an approximately 322,000-square-foot lease at Reservoir Place in Waltham, MA.
BXP Expands Occupancy and Future Commencements
The total portfolio leased rate reached 91.3%, up 40 basis points from the first quarter. The 290-basis-point spread between leased and occupied space represented approximately 1.3 million square feet of future commencements, with about 85% expected before the end of 2026.
The CBD portfolio was 90.7% occupied and 93.6% leased. About 91% of BXP's share of annualized rental obligations came from clients in these urban properties. The addition of the fully occupied 290 Binney Street property contributed to the quarterly occupancy gain, though most of the improvement came from the existing portfolio.
Boston Properties Advances Development Pipeline
BXP fully placed 290 Binney Street in Cambridge, MA, in service during the quarter. The 572,578-square-foot laboratory and life sciences property is fully leased to AstraZeneca.
The company also began redeveloping the approximately 363,000-square-foot Reservoir Place building, which is 89% pre-leased to Boston Dynamics. Separately, BXP formed a joint venture to develop a 359-unit multifamily project in Herndon, VA, retaining a 20% ownership interest and serving as development manager.
Boston Properties Bolsters Project Financing
On July 28, BXP closed a $1.2 billion construction loan for 343 Madison Avenue. The facility carries a four-year initial term and a one-year extension option. Its initial rate is Term SOFR plus 2.50%, declining to Term SOFR plus 2.25% after specified leasing and construction milestones.
Cash and cash equivalents were $493.95 million as of June 30, 2026 compared with $512.78 million as of March 31, 2026.
The company reported an annualized BXP’s share net debt-to-EBITDAre ratio of 7.94, down from 8.50 as of March 31, 2026.
BXP Raises Full-Year FFO Outlook
Management projected third-quarter FFO of $1.80-$1.82 per share. The Zacks Consensus Estimate is pinned at $1.82, which lies at the higher end of the projected range.
BXP raised the midpoint of its full-year 2026 FFO guidance by 5 cents to a range of $6.99-$7.05, citing better-than-projected portfolio performance. The consensus estimate is pegged at $6.96, which lies within the projected range.
Digital Realty Trust (DLR - Free Report) reported second-quarter 2026 core FFO per share, excluding net promote, of $2.13, up 13.9% from a year ago. The figure surpassed the Zacks Consensus Estimate by 7.6%. Strong bookings, a record backlog and sharp renewal rent increases supported the quarter.
Prologis (PLD - Free Report) reported second-quarter 2026 core FFO per share of $1.63, outpacing the Zacks Consensus Estimate of $1.53. Results reflected strengthening demand, disciplined execution and expanding capabilities across logistics, data centers and energy.
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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BXP Q2 FFO & Revenues Beat Estimates on Occupancy Gains, '26 View Up
Key Takeaways
BXP, Inc. (BXP - Free Report) reported second-quarter 2026 funds from operations (FFO) of $1.78 per share, beating the Zacks Consensus Estimate of $1.71. FFO rose 4.1% from the year-ago period.
Results reflected higher occupancy and same-property net operating income (NOI) growth,which supported the FFO beat. Total portfolio occupancy climbed 100 basis points sequentially to 88.4%.
Lease revenues increased 3.2% year over year to $831.68 million and surpassed the consensus mark of $812.49 million. Total revenues increased 3.1% from the prior-year quarter to $895.7 million.
In response to the above results, BXP shares were trading close to 5% higher in the early hours of today’s market session.
BXP’s Second Quarter in Detail
Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $839.23 million, which rose 3.3% year over year. For the hotel & residential segment, the metric aggregated $18.58 million, indicating a 2.5% increase year over year. On a consolidated basis, BXP’s rental revenues (excluding termination income) came in at $857.82 million, up 3.3% year over year.
BXP's share of same-property NOI, excluding termination income, increased 3.5% year over year to $486.81 million. On a cash basis, the metric improved marginally to $454.97 million.
Boston Properties Posts Strong Leasing Volume
The office REIT executed 106 leases covering approximately 1.8 million square feet, with a weighted-average lease term of 9.9 years. The leasing volume equaled about 129% of BXP's historical 10-year second-quarter average.
Notable commitments included an approximately 148,000-square-foot lease with McDermott Will & Schulte at 343 Madison Avenue. That agreement lifted the project's pre-leased level to 50%. Boston Dynamics also signed an approximately 322,000-square-foot lease at Reservoir Place in Waltham, MA.
BXP Expands Occupancy and Future Commencements
The total portfolio leased rate reached 91.3%, up 40 basis points from the first quarter. The 290-basis-point spread between leased and occupied space represented approximately 1.3 million square feet of future commencements, with about 85% expected before the end of 2026.
The CBD portfolio was 90.7% occupied and 93.6% leased. About 91% of BXP's share of annualized rental obligations came from clients in these urban properties. The addition of the fully occupied 290 Binney Street property contributed to the quarterly occupancy gain, though most of the improvement came from the existing portfolio.
Boston Properties Advances Development Pipeline
BXP fully placed 290 Binney Street in Cambridge, MA, in service during the quarter. The 572,578-square-foot laboratory and life sciences property is fully leased to AstraZeneca.
The company also began redeveloping the approximately 363,000-square-foot Reservoir Place building, which is 89% pre-leased to Boston Dynamics. Separately, BXP formed a joint venture to develop a 359-unit multifamily project in Herndon, VA, retaining a 20% ownership interest and serving as development manager.
Boston Properties Bolsters Project Financing
On July 28, BXP closed a $1.2 billion construction loan for 343 Madison Avenue. The facility carries a four-year initial term and a one-year extension option. Its initial rate is Term SOFR plus 2.50%, declining to Term SOFR plus 2.25% after specified leasing and construction milestones.
Cash and cash equivalents were $493.95 million as of June 30, 2026 compared with $512.78 million as of March 31, 2026.
The company reported an annualized BXP’s share net debt-to-EBITDAre ratio of 7.94, down from 8.50 as of March 31, 2026.
BXP Raises Full-Year FFO Outlook
Management projected third-quarter FFO of $1.80-$1.82 per share. The Zacks Consensus Estimate is pinned at $1.82, which lies at the higher end of the projected range.
BXP raised the midpoint of its full-year 2026 FFO guidance by 5 cents to a range of $6.99-$7.05, citing better-than-projected portfolio performance. The consensus estimate is pegged at $6.96, which lies within the projected range.
BXP’s Zacks Rank
BXP 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
Performance of Other REITs
Digital Realty Trust (DLR - Free Report) reported second-quarter 2026 core FFO per share, excluding net promote, of $2.13, up 13.9% from a year ago. The figure surpassed the Zacks Consensus Estimate by 7.6%. Strong bookings, a record backlog and sharp renewal rent increases supported the quarter.
Prologis (PLD - Free Report) reported second-quarter 2026 core FFO per share of $1.63, outpacing the Zacks Consensus Estimate of $1.53. Results reflected strengthening demand, disciplined execution and expanding capabilities across logistics, data centers and energy.
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.