BXP, Inc.

BXP Inc exceeded second-quarter FFO per share guidance and consensus estimates by $0.08 and raised the midpoint of its 2026 FFO per share guidance by $0.05 to a range of $6.99 to $7.05. The company completed nearly 1.8 million square feet of leasing, 29% above its 10-year historical average for the second quarter, and increased its in-service portfolio occupancy to 88.4%, up 100 basis points from the prior quarter. BXP also raised $370 million in total net sale proceeds year-to-date, bringing the total since its last investor conference to more than $1.2 billion, and closed a $1.2 billion construction loan for its 343 Madison Avenue project at SOFR plus 250 basis points. The company raised its same-property net operating income growth assumption by 30 basis points to between 1.8% and 2.6% over 2025. Despite the positive results, BXP noted that cash same-store NOI will lag due to free rent periods and that higher leasing capital expenditures could impact adjusted FFO growth in 2026.

BXP has secured a $1.2 billion construction loan for its 343 Madison Avenue development in Midtown Manhattan, a key step in the $2 billion project. The 46-storey tower will offer approximately 930,000 square feet of space with direct access to Grand Central Terminal's Madison Concourse. The loan carries a four-year initial term with a one-year extension option and an initial interest rate of Term SOFR plus 2.50%, which may reduce to 2.25% upon meeting leasing and construction targets. Wells Fargo Bank served as administrative agent, with BofA Securities, The Bank of New York Mellon, and JPMorgan Chase as joint lead arrangers. About 50% of the building is pre-leased, and completion is expected in late 2029.

Boston Properties reported second-quarter revenue of $831.68 million, a 3.2% increase from a year earlier, surpassing the Zacks Consensus Estimate of $812.49 million. Earnings per share came in at $1.78, up from $0.56 in the same quarter last year and above the analyst consensus of $1.71. The occupancy rate for in-service properties reached 88.4%, slightly ahead of the 88% estimate. Revenue from parking and other sources was $36.49 million, hotel revenue was $14.9 million, and development and management services revenue was $7.63 million, all compared to analyst projections. The company's shares have gained 3.2% over the past month, outperforming the S&P 500's 1.7% advance.

BXP has signed a long-term lease with Boston Dynamics for approximately 320,000 square feet at Reservoir Place in Waltham, Massachusetts, marking one of the largest innovation-focused office leasing transactions in Greater Boston this year. The robotics company will consolidate manufacturing, research and development, training, and artificial intelligence functions currently spread across multiple locations into the new facility, with phased relocation beginning in mid-2027. Reservoir Place, a 530,000-square-foot building owned and operated by BXP since 1998, was chosen for its scale, flexibility, and connectivity to support Boston Dynamics' long-term growth while keeping its presence in Massachusetts. The deal reinforces demand for high-quality office space that fosters collaboration and attracts talent, and is expected to provide BXP with stable, long-term rental income while strengthening its tenant roster.

BXP Inc. has signed law firm McDermott Will & Schulte to a lease for about 150,000 square feet at 343 Madison Avenue, its 930,000-square-foot office tower under construction in Midtown Manhattan. The firm will occupy floors 31 through 37 beginning in October 2029, around the time BXP plans to deliver the project. With McDermott joining existing tenant Starr, which now has about 320,000 square feet after exercising an expansion option, the building is 56% pre-leased. BXP raised its 2026 FFO guidance midpoint slightly to a range of $6.90 to $7.04 per share and has generated about $1.2 billion of net proceeds from asset sales through April 28, 2026. The company's first-quarter results showed more than 1.1 million square feet of leasing, total portfolio occupancy rose 70 basis points to 87.4%, and its leased percentage reached 90.9%.