Key Highlights

  • BXP reported third quarter funds from operations of USD 1.89 per diluted share, up from USD 1.74 a year earlier.
  • Diluted earnings per share were USD 0.71, exceeding the midpoint of the company's guidance by USD 0.20.
  • Total portfolio occupancy increased by 100 basis points, supported by 74 leases covering about 1.2 million square feet.
  • The company raised full year 2026 guidance to USD 2.35 to USD 2.37 for EPS and USD 7.06 to USD 7.08 for FFO.

FFO and EPS Both Top Guidance Midpoints

BXP (NYSE:BXP) reported third quarter total revenue of USD 911.4 million, up from USD 871.5 million a year earlier. Funds from operations reached USD 302.2 million, or USD 1.89 per diluted share, compared with USD 276.7 million, or USD 1.74 per diluted share, in the same period of 2025, exceeding the midpoint of the company's guidance by USD 0.08 per share.

Diluted earnings per share of USD 0.71 exceeded the midpoint of guidance by USD 0.20, which the company attributed primarily to gains on sales tied to disposition activity and portfolio performance that outpaced its internal projections.

Leasing Volume Supports Occupancy Gains

The company executed 74 leases during the quarter totaling approximately 1.2 million square feet, with a weighted average lease term of 10.3 years. Total portfolio occupancy increased by 100 basis points over the quarter, a gain the company tied to leasing momentum across its office portfolio.

Leasing activity included notable transactions in markets such as Washington, D.C., where one property reached 95% leased status covering approximately 231,000 net rentable square feet. The leasing term length, averaging over a decade, reflects the company's focus on longer duration commitments from tenants during the quarter.

Updated Full Year Guidance

The company raised full year 2026 guidance to a range of USD 2.35 to USD 2.37 for earnings per diluted share and USD 7.06 to USD 7.08 for FFO per diluted share. The EPS guidance midpoint increased USD 0.17 from the prior outlook, primarily due to the gains on sales and stronger than projected portfolio performance noted for the quarter.

The FFO guidance midpoint increased USD 0.05 from the prior outlook, reflecting the same portfolio performance trends. The company noted that its EPS estimates could fluctuate based on depreciation and amortization recognition, impairment charges, and any gains or losses tied to future disposition activity not yet under contract.

Portfolio Metrics to Track

The pace of further leasing activity relative to the 74 leases signed this quarter, continued occupancy gains across the portfolio, and progress against the updated FFO guidance range of USD 7.06 to USD 7.08 are among the data points that may inform how the fourth quarter is assessed. Additional disposition activity, which contributed to this quarter's EPS outperformance, remains a variable the company has flagged for future guidance updates.