BXP Reports Strong Performance Toward Multi-Year Business Plan Announced at 2025 Investor Day

Key Terms

ffo financial

Funds from operations (FFO) is a performance metric used mainly for real estate companies that measures the cash generated by their core rental and property-management activities, while removing accounting items such as building depreciation and one-time gains or losses from property sales. Investors rely on FFO to assess a real estate firm's ability to pay and sustain dividends and fund growth—similar to checking how much actual rent a landlord collects each month rather than paper profits.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

weighted average lease term financial

Weighted average lease term is the average remaining length of all leases in a property or group of properties, calculated so leases that pay more rent count more than small ones. It matters to investors because a longer weighted average lease term means steadier, more predictable rental income and less near-term risk of vacancies or renegotiations—think of it like the average remaining time on a group of paid subscriptions, weighted by subscription size.

net proceeds financial

The amount of money a company actually keeps from a sale or fundraising after paying all direct costs and fees, similar to take-home pay after taxes and deductions. Investors care because net proceeds determine how much cash is available for things that affect value—paying debt, funding projects, buying assets, or returning money to shareholders—so it influences future growth potential and financial health.

leveraged interest financial

Leveraged interest is the interest cost charged on borrowed funds used to increase the size of an investment or business activity. Like paying to rent a bigger shovel to dig more quickly, this extra borrowing can boost returns when things go well but raises ongoing costs and magnifies losses when they don't. Investors watch leveraged interest because higher or variable interest payments reduce cash flow, squeeze profits, raise default risk and can materially change a company’s valuation.

unleveraged cash return financial

Unleveraged cash return is the percentage of money an investment generates based only on the actual cash you put in, calculated without using borrowed funds or financing. It reflects the cash income or proceeds you receive (such as dividends, rent or operating cashflow) relative to your own cash outlay. This measure matters to investors because it shows the pure, “cash-in-pocket” performance of an asset—helping compare opportunities and revealing how much return comes from the business itself rather than from debt.

real estate investment trust regulatory

A real estate investment trust (REIT) is a company that owns and manages income-producing properties—like apartment buildings, shopping centers, offices, or warehouses—and is required to pass most of its rental income to shareholders as dividends. Think of it as a shared property owner: instead of buying a whole building, investors buy a slice of a portfolio that pays regular income and can offer exposure to property values and rental markets without direct management. REITs matter to investors for predictable income, diversification, and liquidity compared with owning physical real estate.

unconsolidated joint ventures financial

Unconsolidated joint ventures are business partnerships where a company shares ownership and control but keeps the venture’s full financials separate from its own books; the company typically reports only its share of profit or loss instead of combining all assets, liabilities and sales. This matters to investors because it can hide the venture’s full risks, debts and revenues from the parent’s financial statements, so understanding these arrangements helps assess true exposure and future cash flow potential — like seeing only your slice of a pie rather than the whole pie’s size.

Progress On Track to Meet or Exceed Targets

BOSTON--(BUSINESS WIRE)-- BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, announced today strong progress on the multi-year business plan outlined at BXP’s Investor Day in September 2025. The business plan is designed to optimize BXP’s premier workplace positioning and portfolio with the overall goal of increasing FFO growth per share and deleveraging.

Tactics and targets of the business plan and highlights of BXP’s execution include:

• Lease space and increase occupancy in our premier portfolio, targeting 89% occupied (91% leased) by end of 2026, with improvement to 91% occupied (93% leased) by end of 2027.
  • Completed more than 1.8 million square feet of leasing in Q4 2025 with a weighted average lease term of 10.1 years, including 425,000 square feet of leasing on currently vacant space and 620,000 square feet of leasing on expirations through year end 2027, increasing occupancy by 70 basis points to 86.7% (89.4% leased). Leasing volume for Q4 represented approximately 114% of BXP’s historical Q4 leasing average.
  • Quarter-to-date, executed approximately 600,000 square feet of leasing, with an additional 1.0 million square feet currently in negotiation and 1.4 million square feet in the proposal stage, providing meaningful visibility into continued occupancy growth. Of this 3.0 million square feet of leasing pipeline, approximately 1.5 million square feet is for currently vacant space and 820,000 square feet is for space expiring through 2027.
• Optimize portfolio through execution of strategic sales program of land, residential, and non-strategic office assets, targeting $1.9 billion in net proceeds over three years.
  • Completed dispositions with total net proceeds of more than $1.1 billion, with additional dispositions expected in 2026 that would bring estimated total net proceeds to $1.25 billion.
  • Dispositions have included:
    • Eight suburban land parcels across the Boston, San Francisco, and Washington, DC regions generating aggregate net proceeds of approximately $250.0 million,
    • Three residential towers in Boston and Cambridge, Massachusetts and Reston, Virginia generating aggregate net proceeds of approximately $460.0 million, and
    • Three non-core office/lab properties in Needham, Massachusetts, South San Francisco, California, and Washington, DC generating aggregate net proceeds of approximately $397.0 million.
• Pursue external growth through premier workplace developments in core markets and merchant development of residential assets with a majority capital partner.
  • Launched the development of 343 Madison Avenue in Midtown Manhattan (29% pre-leased) and 725 12^th Street, Washington, DC (79% pre-leased).
  • Construction of more than 1,400 units in three residential properties currently underway with entitlements for more than 5,000 additional units in various stages of design and permitting across regions.
• Enhance position to secure a financial partner for a 30% to 50% leveraged interest in 343 Madison Avenue.
  • Executed a lease for approximately 275,000 square feet with Starr, a global investment and insurance organization, securing approximately 29% of the 930,000 square foot premier workplace tower.
  • In active discussions with multiple clients for additional space and projections remain on track for a stabilized unleveraged cash return of 7.5% to 8.0% upon delivery in 2029.

“Our clearly articulated business plan to lease space and improve occupancy, sell select assets, and reinvest in premier workplace development will allow BXP to grow FFO/share, deleverage, and improve portfolio quality over time,” said Owen Thomas, Chairman and CEO, BXP. “We have made very strong progress executing all aspects of our plan over the last six months.”

About BXP

BXP, Inc. (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 55 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). As of December 31, 2025, BXP’s portfolio, including properties owned by unconsolidated joint ventures, totaled 52.9 million square feet and 180 properties, including eight properties under construction or redevelopment. For more information, visit www.bxp.com or follow us on LinkedIn or Instagram.

This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “future,” “will,” “would,” “expects,” “intends” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond BXP’s control. Should one or more of these known or unknown risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the Company’s ability to achieve the targets of the business plan referenced above, difficulties selling assets to execute on BXP’s asset sales program at the assumed prices and/or on the assumed schedules, if at all, the Company’s ability to complete the development and redevelopment projects referenced above within budget, on schedule or at all, the uncertainties of real estate development activity, the Company’s ability to secure a financial partner(s) for 343 Madison Avenue on favorable terms, on the assumed schedule or at all, the Company’s ability to enter into a definitive lease and additional leases for the remaining space at 343 Madison Avenue on favorable terms, on schedule, or at all, and other risks and uncertainties detailed from time to time in BXP’s filings with the SEC. BXP does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260302893517/en/

BXP Contacts

Laura Sesody

Senior Vice President, Corporate Marketing & Communications

lsesody@bxp.com

Helen Han

Vice President, Investor Relations

hhan@bxp.com

Source: BXP, Inc.