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Lease revenues increased 4.5% year over year to $846.2 million, surpassing the consensus mark of $839.9 million by 0.7%. Total revenues rose 4.6% to $911.4 million.
Results reflected better-than-projected portfolio performance, supported by improved occupancy and growth in same-property net operating income (NOI), which aided the FFO and revenues beats.
BXP's Third Quarter in Detail
BXP’s same-property rental revenues (excluding termination income) for the office portfolio came in at $840.3 million, up 3.4% year over year. For the hotel and residential segment, the metric totaled $17.1 million, reflecting a 3.8% increase. On a consolidated same-property basis, rental revenues (excluding termination income) increased 3.4% to $857.4 million.
BXP's share of same-property NOI, excluding termination income, increased 3.4% year over year to $487.9 million. However, on a cash basis, the metric declined 0.3% to $449.7 million, indicating weaker cash-based operating performance despite growth in reported NOI.
Total expenses declined to $615.6 million from $619 million in the prior-year quarter. General and administrative expenses increased to $37.6 million from $36.2 million, while interest expenses declined to $159.1 million from $164.3 million.
BXP Records Solid Leasing Activity
The office REIT executed 74 leases covering approximately 1.2 million square feet during the third quarter, with a weighted-average lease term of 10.3 years.
Notable agreements included an approximately 206,000-square-foot lease with a technology company at 500 North Capitol in Washington, DC. The company also secured an approximately 112,000-square-foot lease renewal with a law firm at Madison Centre in Seattle, WA.
BXP Extends Portfolio Occupancy Gains
BXP’s total portfolio occupancy increased 100 basis points (bps) sequentially to 89.4%, marking the fourth consecutive quarter of occupancy gains. The total portfolio leased percentage reached 91.9%, up 60 bps from the prior quarter.
The 250-basis-point gap between leased and occupied space represented approximately 1.1 million square feet of future lease commencements, with roughly half expected before year-end 2026.
BXP's central business district (CBD) portfolio was 91.8% occupied and 94.1% leased. Approximately 90.4% of the company's share of annualized rental obligations came from clients occupying these urban properties.
BXP Advances Capital Recycling
During the third quarter, BXP completed the sales of Sumner Square and 1330 Connecticut Avenue in Washington, DC, for an aggregate gross sales price of approximately $155.4 million. The transactions generated net proceeds of approximately $150.3 million and gains on real estate sales of approximately $10.5 million.
BXP also sold a 10.55% equity interest in its 343 Madison Avenue development to AVRS Partners. The partner agreed to invest approximately $81.5 million, including $50.7 million at closing.
Following the transaction, BXP retained an 89.45% ownership interest and continued responsibility for the project's development, leasing and property management.
BXP Strengthens Liquidity and Financing Position
Cash and cash equivalents totaled $1.47 billion as of Sept. 30, 2026 compared with $493.9 million as of June 30, 2026. The company's share of net debt-to-EBITDAre ratio improved to 7.52 from 7.94 sequentially.
BXP entered into a $1.2 billion construction loan for 343 Madison Avenue, with an initial four-year term and a one-year extension option. The initial interest rate of Term SOFR plus 2.50% will decline to Term SOFR plus 2.25% upon achieving specified milestones.
The company's operating partnership also completed a $700 million offering of 6.050% unsecured senior notes due 2036, generating approximately $692.4 million in net proceeds.
BXP Raises Full-Year FFO Outlook
Management raised its full-year 2026 FFO guidance to $7.06-$7.08 per share, increasing the midpoint by 5 cents. The upward revision primarily reflected better-than-projected portfolio performance. The consensus estimate is pegged at $7.02 per share, which lies below the projected range.
For 2026, management anticipates average in-service portfolio occupancy of 88.75-89.25%. BXP's share of same-property NOI, excluding termination income, is projected to increase 2.35-2.75%, while the corresponding cash-basis metric is expected to range from a 0.25% decline to a 0.25% increase.
Welltower Inc. (WELL - Free Report) reported third-quarter 2026 normalized FFO of $1.67 per share, beating the Zacks Consensus Estimate of $1.64 by 1.8%. The metric increased 24.6% year over year.
Total revenues of $3.72 billion surpassed the consensus mark of $3.63 billion by 2.5% and rose 38.4% year over year. WELL’s results benefited from robust senior housing operating portfolio performance, with same-store NOI growth and improvement in average occupancy.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2026 adjusted funds from operations (AFFO) per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. CCI’s results benefited from lower interest expenses.
Quarterly revenues of $995 million declined 7.2% year over year and missed the consensus estimate of $1.01 billion by 1.4%. The decrease was due to lower site rental revenues and services revenues.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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BXP Q3 FFO & Revenues Beat Estimates on Occupancy Gains, 26' View Up
Key Takeaways
BXP, Inc. (BXP - Free Report) reported third-quarter 2026 funds from operations (FFO) of $1.89 per share, beating the Zacks Consensus Estimate of $1.80 by 5%. FFO increased 8.6% from the year-ago quarter.
Lease revenues increased 4.5% year over year to $846.2 million, surpassing the consensus mark of $839.9 million by 0.7%. Total revenues rose 4.6% to $911.4 million.
Results reflected better-than-projected portfolio performance, supported by improved occupancy and growth in same-property net operating income (NOI), which aided the FFO and revenues beats.
BXP's Third Quarter in Detail
BXP’s same-property rental revenues (excluding termination income) for the office portfolio came in at $840.3 million, up 3.4% year over year. For the hotel and residential segment, the metric totaled $17.1 million, reflecting a 3.8% increase. On a consolidated same-property basis, rental revenues (excluding termination income) increased 3.4% to $857.4 million.
BXP's share of same-property NOI, excluding termination income, increased 3.4% year over year to $487.9 million. However, on a cash basis, the metric declined 0.3% to $449.7 million, indicating weaker cash-based operating performance despite growth in reported NOI.
Total expenses declined to $615.6 million from $619 million in the prior-year quarter. General and administrative expenses increased to $37.6 million from $36.2 million, while interest expenses declined to $159.1 million from $164.3 million.
BXP Records Solid Leasing Activity
The office REIT executed 74 leases covering approximately 1.2 million square feet during the third quarter, with a weighted-average lease term of 10.3 years.
Notable agreements included an approximately 206,000-square-foot lease with a technology company at 500 North Capitol in Washington, DC. The company also secured an approximately 112,000-square-foot lease renewal with a law firm at Madison Centre in Seattle, WA.
BXP Extends Portfolio Occupancy Gains
BXP’s total portfolio occupancy increased 100 basis points (bps) sequentially to 89.4%, marking the fourth consecutive quarter of occupancy gains. The total portfolio leased percentage reached 91.9%, up 60 bps from the prior quarter.
The 250-basis-point gap between leased and occupied space represented approximately 1.1 million square feet of future lease commencements, with roughly half expected before year-end 2026.
BXP's central business district (CBD) portfolio was 91.8% occupied and 94.1% leased. Approximately 90.4% of the company's share of annualized rental obligations came from clients occupying these urban properties.
BXP Advances Capital Recycling
During the third quarter, BXP completed the sales of Sumner Square and 1330 Connecticut Avenue in Washington, DC, for an aggregate gross sales price of approximately $155.4 million. The transactions generated net proceeds of approximately $150.3 million and gains on real estate sales of approximately $10.5 million.
BXP also sold a 10.55% equity interest in its 343 Madison Avenue development to AVRS Partners. The partner agreed to invest approximately $81.5 million, including $50.7 million at closing.
Following the transaction, BXP retained an 89.45% ownership interest and continued responsibility for the project's development, leasing and property management.
BXP Strengthens Liquidity and Financing Position
Cash and cash equivalents totaled $1.47 billion as of Sept. 30, 2026 compared with $493.9 million as of June 30, 2026. The company's share of net debt-to-EBITDAre ratio improved to 7.52 from 7.94 sequentially.
BXP entered into a $1.2 billion construction loan for 343 Madison Avenue, with an initial four-year term and a one-year extension option. The initial interest rate of Term SOFR plus 2.50% will decline to Term SOFR plus 2.25% upon achieving specified milestones.
The company's operating partnership also completed a $700 million offering of 6.050% unsecured senior notes due 2036, generating approximately $692.4 million in net proceeds.
BXP Raises Full-Year FFO Outlook
Management raised its full-year 2026 FFO guidance to $7.06-$7.08 per share, increasing the midpoint by 5 cents. The upward revision primarily reflected better-than-projected portfolio performance. The consensus estimate is pegged at $7.02 per share, which lies below the projected range.
For 2026, management anticipates average in-service portfolio occupancy of 88.75-89.25%. BXP's share of same-property NOI, excluding termination income, is projected to increase 2.35-2.75%, while the corresponding cash-basis metric is expected to range from a 0.25% decline to a 0.25% increase.
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
Welltower Inc. (WELL - Free Report) reported third-quarter 2026 normalized FFO of $1.67 per share, beating the Zacks Consensus Estimate of $1.64 by 1.8%. The metric increased 24.6% year over year.
Total revenues of $3.72 billion surpassed the consensus mark of $3.63 billion by 2.5% and rose 38.4% year over year. WELL’s results benefited from robust senior housing operating portfolio performance, with same-store NOI growth and improvement in average occupancy.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2026 adjusted funds from operations (AFFO) per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. CCI’s results benefited from lower interest expenses.
Quarterly revenues of $995 million declined 7.2% year over year and missed the consensus estimate of $1.01 billion by 1.4%. The decrease was due to lower site rental revenues and services revenues.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.