Key Highlights

  • FFO was $1.89 per diluted share in the third quarter, up from $1.74 a year earlier, and $0.08 above the midpoint of the company's own guidance.
  • Net income was $0.71 per diluted share, against a loss of $0.77 in the prior-year quarter.
  • Revenue reached $911.4 million, up 4.6% from $871.5 million.
  • Total portfolio occupancy rose to 89.4%, up 100 basis points from the second quarter.
  • Full-year 2026 FFO guidance is $7.06 to $7.08 per diluted share, with EPS guidance of $2.35 to $2.37.

BXP Earnings: Did a $1.89 FFO Beat and a Higher Outlook Hide a Heavier Debt Load?

BXP (NYSE:BXP) reported third-quarter results on Tuesday, October 27, with funds from operations (FFO) of $1.89 per diluted share, up from $1.74 a year earlier and $0.08 above the midpoint of its own guidance. Net income was $0.71 per diluted share, compared with a loss of $0.77. As screened, reported EPS of $0.65 against a $0.52 estimate was a 24.11% surprise; the company's own per-share figures are used here.

The release lifted full-year 2026 guidance to FFO of $7.06 to $7.08 per diluted share and EPS of $2.35 to $2.37. The release attributed the increase to gains on third-quarter sales and to portfolio performance that ran ahead of projections.

The company's share of net debt to annualized EBITDAre fell to 7.52 times from 7.94 times in the second quarter. Debt to market capitalization rose to 60.08% from 56.61%, a measure that moves with equity value as well as borrowings.

BXP Occupancy and Leasing: How Far Has the Recovery Gone?

Revenue was $911.4 million, up 4.6% from $871.5 million. Total portfolio occupancy reached 89.4% at September 30, up 100 basis points from the second quarter and the fourth consecutive quarterly gain. The leased percentage was 91.9%, a 250 basis point gap that represents about 1.1 million square feet of future commencements, roughly half expected before year-end.

The company signed 74 leases covering about 1.2 million square feet, with a weighted average term of 10.3 years. Second-generation leases showed gross rent growth of 6.55%. Same-property net operating income rose 3.4% excluding termination income, while the cash measure slipped 0.3%.

Markets diverged. Washington, DC leasing rolled up 13.89% gross and New York 10.71%, but San Francisco rolled down 8.31% and Boston 1.17%.

BXP Capital Moves: What Did the $1.2 Billion Madison Loan and New Notes Change?

BXP closed a $1.2 billion construction loan for 343 Madison Avenue in New York at Term SOFR plus 2.50%, stepping down to 2.25% on milestones, and sold a 10.6% equity interest in the project to a private investor. The tower is 56% leased with estimated total investment of $1.75 billion and initial occupancy targeted for the third quarter of 2029.

The operating partnership issued $700 million of 6.050% senior notes due October 15, 2036, at an effective yield of about 6.162%. Sales of Sumner Square and 1330 Connecticut Avenue in Washington, DC totaled about $155.4 million gross.

Cash stood at $1.47 billion, with $247 million drawn on the credit line and $750 million of commercial paper outstanding. The quarterly dividend remains $0.70 per share.

BXP Guidance Assumptions: What to Watch After the October 28 Call?

Management is scheduled to discuss the quarter on Wednesday, October 28, at 10:00 a.m. Eastern. The guidance assumptions to test are same-property NOI growth of 2.35% to 2.75% and average in-service occupancy of 88.75% to 89.25% for the year. Also set out are termination income of $23 million to $25 million and consolidated net interest expense of $593 million to $598 million.

Investors will look for commentary on San Francisco and Boston rent roll-downs and the pace of leased-to-occupied conversions.