Boston Properties (BXP) reported better-than-anticipated third-quarter revenues of $871.5 million, driven by robust leasing activity that saw 79 new leases totaling over 1.5 million square feet, a 38% year-over-year increase. Despite a sequential 40 basis point decrease in occupancy to 86% due to new development deliveries not yet generating revenue, the company raised its 2025 FFO per share guidance to $6.89-$6.92, surpassing the Zacks Consensus Estimate. This performance reflects strong demand for its premium office portfolio and strategic development initiatives.
Boston Properties (BXP) delivered better-than-anticipated Q3 2025 results, with total revenues increasing 1.4% year-over-year to $871.5 million, exceeding the Zacks Consensus Estimate. This was largely propelled by robust leasing activity, which saw 79 new leases covering over 1.5 million square feet, representing a significant 38% year-over-year increase. The strong demand for BXP's premium office portfolio is a key driver. Despite healthy leasing, BXP's in-service property occupancy decreased 40 basis points sequentially to 86%, primarily due to new development deliveries where revenue recognition has not yet begun. Nevertheless, the company demonstrated confidence by raising its 2025 FFO per share guidance to $6.89-$6.92, now surpassing the Zacks Consensus Estimate of $6.87. Strategic portfolio development continued with the vertical construction of 343 Madison Avenue and the full placement into service of three other projects, two of which are substantially pre-leased (100% and 92%). BXP also improved its cash position, with cash and cash equivalents rising to $861.1 million, though net debt to EBITDAre saw a slight uptick to 8.21. The 2.6% increase in same-property net operating income further supports the operational health of its core assets.
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