ITEM 1—Financial Statements.
| | | | | | | | | | | | | | |
BXP, INC. CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except for share and par value amounts) |
| | March 31, 2026 | | December 31, 2025 |
| ASSETS | | | | |
Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $8,083,218 and $8,005,124 at March 31, 2026 and December 31, 2025, respectively) | | $ | 28,375,492 | | | $ | 28,241,879 | |
Right of use assets - finance leases (amounts related to VIEs of $21,000 and $21,000 at March 31, 2026 and December 31, 2025, respectively) | | 372,476 | | | 372,470 | |
| Right of use assets - operating leases | | 321,030 | | | 325,841 | |
Less: accumulated depreciation (amounts related to VIEs of $(1,805,748) and $(1,763,988) at March 31, 2026 and December 31, 2025, respectively) | | (8,170,334) | | | (8,040,311) | |
| Total real estate | | 20,898,664 | | | 20,899,879 | |
Cash and cash equivalents (amounts related to VIEs of $193,689 and $255,631 at March 31, 2026 and December 31, 2025, respectively) | | 512,783 | | | 1,478,206 | |
Cash held in escrows (amounts related to VIEs of $5,381 and $10,319 at March 31, 2026 and December 31, 2025, respectively) | | 68,471 | | | 79,060 | |
| Investments in securities | | 42,072 | | | 44,614 | |
Tenant and other receivables, net (amounts related to VIEs of $38,754 and $30,989 at March 31, 2026 and December 31, 2025, respectively) | | 90,137 | | | 92,625 | |
| Note receivable, net | | 10,071 | | | 9,373 | |
| Related party notes receivable, net | | 31,447 | | | 28,346 | |
| Sales-type lease receivable, net | | 15,921 | | | 15,672 | |
Accrued rental income, net (amounts related to VIEs of $474,838 and $470,734 at March 31, 2026 and December 31, 2025, respectively) | | 1,558,226 | | | 1,538,515 | |
Deferred charges, net (amounts related to VIEs of $202,275 and $204,924 at March 31, 2026 and December 31, 2025, respectively) | | 830,917 | | | 847,690 | |
Prepaid expenses and other assets (amounts related to VIEs of $48,202 and $14,509 at March 31, 2026 and December 31, 2025, respectively) | | 188,819 | | | 108,105 | |
| Investments in unconsolidated joint ventures | | 854,722 | | | 999,309 | |
| Assets held for sale | | — | | | 24,770 | |
| Total assets | | $ | 25,102,250 | | | $ | 26,166,164 | |
| LIABILITIES AND EQUITY | | | | |
| Liabilities: | | | | |
Mortgage notes payable, net (amounts related to VIEs of $3,288,081 and $3,286,870 at March 31, 2026 and December 31, 2025, respectively) | | $ | 4,280,639 | | | $ | 4,280,067 | |
| Unsecured senior notes, net | | 8,808,674 | | | 9,806,100 | |
| Unsecured exchangeable senior notes, net | | 977,387 | | | 976,263 | |
| Unsecured line of credit | | — | | | — | |
| Unsecured term loans, net | | 797,309 | | | 797,053 | |
| Unsecured commercial paper | | 750,000 | | | 750,000 | |
Lease liabilities - finance leases (amounts related to VIEs of $21,106 and $21,074 at March 31, 2026 and December 31, 2025, respectively) | | 357,039 | | | 360,039 | |
| Lease liabilities - operating leases | | 387,481 | | | 389,213 | |
Accounts payable and accrued expenses (amounts related to VIEs of $80,255 and $88,849 at March 31, 2026 and December 31, 2025, respectively) | | 418,443 | | | 480,017 | |
| Dividends and distributions payable | | 124,018 | | | 123,753 | |
Accrued interest payable | | 124,068 | | | 125,345 | |
Other liabilities (amounts related to VIEs of $85,594 and $95,209 at March 31, 2026 and December 31, 2025, respectively) | | 352,813 | | | 386,074 | |
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BXP, INC. CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except for share and par value amounts) |
| | March 31, 2026 | | December 31, 2025 |
| Total liabilities | | 17,377,871 | | | 18,473,924 | |
Commitments and contingencies (See Note 8) | | | | |
Redeemable deferred stock units— 116,733 and 111,701 units outstanding at redemption value at March 31, 2026 and December 31, 2025, respectively | | 6,058 | | | 7,538 | |
| Equity: | | | | |
| Stockholders’ equity attributable to BXP, Inc.: | | | | |
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding | | — | | | — | |
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued or outstanding | | — | | | — | |
Common stock, $0.01 par value, 250,000,000 shares authorized, 158,754,863 and 158,627,198 issued and 158,675,963 and 158,548,298 outstanding at March 31, 2026 and December 31, 2025, respectively | | 1,587 | | | 1,585 | |
Additional paid-in capital | | 6,843,822 | | | 6,836,243 | |
| Dividends in excess of earnings | | (1,684,492) | | | (1,674,995) | |
Treasury common stock at cost, 78,900 shares at March 31, 2026 and December 31, 2025 | | (2,722) | | | (2,722) | |
| Accumulated other comprehensive loss | | (6,082) | | | (12,921) | |
| Total stockholders’ equity attributable to BXP, Inc. | | 5,152,113 | | | 5,147,190 | |
| Noncontrolling interests: | | | | |
| Common units of Boston Properties Limited Partnership | | 583,922 | | | 566,563 | |
| Property partnerships | | 1,982,286 | | | 1,970,949 | |
| Total equity | | 7,718,321 | | | 7,684,702 | |
| Total liabilities and equity | | $ | 25,102,250 | | | $ | 26,166,164 | |
The accompanying notes are an integral part of these consolidated financial statements.
BXP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except for per share amounts)
| | | | | | | | | | | | | | | | | |
| Three months ended March 31, | | |
| | 2026 | | 2025 | | | | | | |
| Revenue | | | | | | | | | |
| Lease | $ | 818,156 | | | $ | 811,102 | | | | | | | |
| Parking and other | 30,814 | | | 30,242 | | | | | | | |
| Hotel | 9,101 | | | 9,597 | | | | | | | |
| Development and management services | 9,207 | | | 9,775 | | | | | | | |
Direct reimbursements of payroll and related costs from management services contracts | 4,870 | | | 4,499 | | | | | | | |
| Total revenue | 872,148 | | | 865,215 | | | | | | | |
| Expenses | | | | | | | | | |
| Operating | | | | | | | | | |
| Rental | 344,082 | | | 331,578 | | | | | | | |
| Hotel | 7,982 | | | 7,565 | | | | | | | |
| General and administrative | 59,341 | | | 52,284 | | | | | | | |
| Payroll and related costs from management services contracts | 4,870 | | | 4,499 | | | | | | | |
| Transaction costs | 129 | | | 768 | | | | | | | |
| Depreciation and amortization | 227,967 | | | 220,107 | | | | | | | |
| Total expenses | 644,371 | | | 616,801 | | | | | | | |
| Other income (expense) | | | | | | | | | |
| Income (loss) from unconsolidated joint ventures | 35,413 | | | (2,139) | | | | | | | |
| Gains on sales of real estate | 13,402 | | | — | | | | | | | |
| Loss on sales-type lease | — | | | (2,490) | | | | | | | |
| Interest and other income (loss) | 8,885 | | | 7,750 | | | | | | | |
| Losses from investments in securities | (566) | | | (365) | | | | | | | |
| | | | | | | | | |
| Unrealized gain (loss) on non-real estate investments | 188 | | | (483) | | | | | | | |
| | | | | | | | | |
| Loss from early extinguishment of debt | — | | | (338) | | | | | | | |
| Interest expense | (152,093) | | | (163,444) | | | | | | | |
| Net income | 133,006 | | | 86,905 | | | | | | | |
| Net income attributable to noncontrolling interests | | | | | | | | | |
| Noncontrolling interests in property partnerships | (19,869) | | | (18,749) | | | | | | | |
| Noncontrolling interest—common units of the Operating Partnership | (11,561) | | | (6,979) | | | | | | | |
| Net income attributable to BXP, Inc. | $ | 101,576 | | | $ | 61,177 | | | | | | | |
| Basic earnings per common share attributable to BXP, Inc. | | | | | | | | | |
| Net income | $ | 0.64 | | | $ | 0.39 | | | | | | | |
| Weighted average number of common shares outstanding | 158,555 | | | 158,202 | | | | | | | |
| Diluted earnings per common share attributable to BXP, Inc. | | | | | | | | | |
| Net income | $ | 0.64 | | | $ | 0.39 | | | | | | | |
Weighted average number of common and common equivalent shares outstanding | 159,056 | | | 158,632 | | | | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
BXP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited and in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | Three months ended March 31, | | |
| | | 2026 | | 2025 | | | | | | |
| Net income | | $ | 133,006 | | | $ | 86,905 | | | | | | | |
| Other comprehensive income (loss): | | | | | | | | | | |
| Effective portion of interest rate contracts | | 6,073 | | | (13,276) | | | | | | | |
| Amortization of interest rate contracts (1) | | 1,676 | | | 3,081 | | | | | | | |
| Other comprehensive income (loss) | | 7,749 | | | (10,195) | | | | | | | |
| Comprehensive income | | 140,755 | | | 76,710 | | | | | | | |
| Net income attributable to noncontrolling interests | | (31,430) | | | (25,728) | | | | | | | |
| Other comprehensive (income) loss attributable to noncontrolling interests | | (910) | | | 888 | | | | | | | |
| Comprehensive income attributable to BXP, Inc. | | $ | 108,415 | | | $ | 51,870 | | | | | | | |
_______________
(1)Amounts reclassified from comprehensive income (loss) primarily to interest expense within BXP, Inc.’s Consolidated Statements of Operations.
The accompanying notes are an integral part of these consolidated financial statements.
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BXP, INC. CONSOLIDATED STATEMENTS OF EQUITY (unaudited and in thousands) |
| | Common Stock | | Additional Paid-in Capital | | Dividends in Excess of Earnings | | Treasury Stock,
at cost | | Accumulated Other Comprehensive Loss | | Noncontrolling Interests - Common Units | | Noncontrolling Interests - Property Partnerships | | Total |
| | Shares | | Amount | |
| Equity, December 31, 2025 | 158,548 | | | $ | 1,585 | | | $ | 6,836,243 | | | $ | (1,674,995) | | | $ | (2,722) | | | $ | (12,921) | | | $ | 566,563 | | | $ | 1,970,949 | | | $ | 7,684,702 | |
| Redemption of operating partnership units to common stock | 49 | | | 2 | | | 1,530 | | | — | | | — | | | — | | | (1,532) | | | — | | | — | |
| Allocated net income for the period | — | | | — | | | — | | | 101,576 | | | — | | | — | | | 11,561 | | | 19,869 | | | 133,006 | |
| Dividends/distributions declared | — | | | — | | | — | | | (111,073) | | | — | | | — | | | (13,281) | | | — | | | (124,354) | |
| Shares issued pursuant to stock purchase plan | 6 | | | — | | | 441 | | | — | | | — | | | — | | | — | | | — | | | 441 | |
| Net activity from stock option and incentive plan | 73 | | | — | | | 2,447 | | | — | | | — | | | — | | | 23,016 | | | — | | | 25,463 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | | | — | | | (10) | | | — | | | — | | | — | | | — | | | 13,934 | | | 13,924 | |
| Distributions to noncontrolling interests in property partnerships | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (22,610) | | | (22,610) | |
| Effective portion of interest rate contracts | — | | | — | | | — | | | — | | | — | | | 5,462 | | | 611 | | | — | | | 6,073 | |
| Amortization of interest rate contracts | — | | | — | | | — | | | — | | | — | | | 1,377 | | | 155 | | | 144 | | | 1,676 | |
| Reallocation of noncontrolling interest | — | | | — | | | 3,171 | | | — | | | — | | | — | | | (3,171) | | | — | | | — | |
Equity, March 31, 2026 | 158,676 | | | $ | 1,587 | | | $ | 6,843,822 | | | $ | (1,684,492) | | | $ | (2,722) | | | $ | (6,082) | | | $ | 583,922 | | | $ | 1,982,286 | | | $ | 7,718,321 | |
| | | | | | | | | | | | | | | | | |
| Equity, December 31, 2024 | 158,175 | | | $ | 1,582 | | | $ | 6,836,093 | | | $ | (1,419,575) | | | $ | (2,722) | | | $ | (2,072) | | | $ | 591,270 | | | $ | 1,933,545 | | | $ | 7,938,121 | |
| Redemption of operating partnership units to common stock | 112 | | | 1 | | | 3,675 | | | — | | | — | | | — | | | (3,676) | | | — | | | — | |
| Allocated net income for the period | — | | | — | | | — | | | 61,177 | | | — | | | — | | | 6,979 | | | 18,749 | | | 86,905 | |
| Dividends/distributions declared | — | | | — | | | — | | | (155,157) | | | — | | | — | | | (18,149) | | | — | | | (173,306) | |
| Shares issued pursuant to stock purchase plan | 6 | | | — | | | 470 | | | — | | | — | | | — | | | — | | | — | | | 470 | |
| Net activity from stock option and incentive plan | 30 | | | — | | | 1,232 | | | — | | | — | | | — | | | 20,989 | | | — | | | 22,221 | |
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | | | — | | | (281) | | | — | | | — | | | — | | | — | | | 5,431 | | | 5,150 | |
| Distributions to noncontrolling interests in property partnerships | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (19,525) | | | (19,525) | |
| Effective portion of interest rate contracts | — | | | — | | | — | | | — | | | — | | | (11,950) | | | (1,326) | | | — | | | (13,276) | |
| Amortization of interest rate contracts | — | | | — | | | — | | | — | | | — | | | 2,643 | | | 294 | | | 144 | | | 3,081 | |
| Reallocation of noncontrolling interest | — | | | — | | | 4,826 | | | — | | | — | | | — | | | (4,826) | | | — | | | — | |
Equity, March 31, 2025 | 158,323 | | | $ | 1,583 | | | $ | 6,846,015 | | | $ | (1,513,555) | | | $ | (2,722) | | | $ | (11,379) | | | $ | 591,555 | | | $ | 1,938,344 | | | $ | 7,849,841 | |
The accompanying notes are an integral part of these consolidated financial statements.
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BXP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) |
| | Three months ended March 31, |
| | 2026 | | 2025 | | |
| Cash flows from operating activities: | | | | | |
| Net income | $ | 133,006 | | | $ | 86,905 | | | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | |
| Depreciation and amortization | 227,967 | | | 220,107 | | | |
| | | | | |
| Amortization of right of use assets - operating leases | (123) | | | 203 | | | |
| Amortization of sales type lease | (245) | | | (281) | | | |
| Non-cash compensation expense | 25,320 | | | 22,917 | | | |
| (Income) loss from unconsolidated joint ventures | (35,413) | | | 2,139 | | | |
| Distributions of net cash flow from operations of unconsolidated joint ventures | 10,335 | | | 17,053 | | | |
| Losses from investments in securities | 566 | | | 365 | | | |
| Allowance for current expected credit losses | 44 | | | (23) | | | |
| Non-cash portion of interest expense | 8,021 | | | 9,257 | | | |
| Loss from early extinguishments of debt | — | | | 338 | | | |
| Gains on sales of real estate | (13,402) | | | — | | | |
| Loss on sales-type lease | — | | | 2,490 | | | |
| Unrealized (gain) loss on non-real estate investments | (188) | | | 483 | | | |
| Change in assets and liabilities: | | | | | |
| Tenant and other receivables, net | 1,261 | | | 1,903 | | | |
| | | | | |
| Accrued rental income, net | (20,508) | | | (28,178) | | | |
| Prepaid expenses and other assets | (79,190) | | | (73,910) | | | |
| | | | | |
| Lease liabilities - operating leases | (4,848) | | | (162) | | | |
| Accounts payable and accrued expenses | (30,961) | | | (14,664) | | | |
| Accrued interest payable | (1,277) | | | (7,660) | | | |
| Other liabilities | (25,511) | | | (11,862) | | | |
| Tenant leasing costs | (38,388) | | | (17,384) | | | |
| Total adjustments | 23,460 | | | 123,131 | | | |
| Net cash provided by operating activities | 156,466 | | | 210,036 | | | |
| Cash flows from investing activities: | | | | | |
| | | | | |
| Construction in progress | (190,438) | | | (138,796) | | | |
| Building, pre-development and other capital improvements | (30,765) | | | (57,395) | | | |
| Tenant improvements | (67,095) | | | (60,338) | | | |
| Proceeds from sales of real estate | 124,661 | | | — | | | |
| | | | | |
| Capital contributions to unconsolidated joint ventures | (43,167) | | | (52,611) | | | |
| Capital distributions from unconsolidated joint ventures | 183 | | | — | | | |
| Proceeds from sales of investments in unconsolidated joint ventures | 214,733 | | | — | | | |
| Investment in non-real estate investments | (412) | | | (434) | | | |
| Issuance of note receivables (including related party) | (3,849) | | | (600) | | | |
| | | | | |
| Investments in securities, net | 1,976 | | | 1,031 | | | |
| Net cash provided by (used in) investing activities | 5,827 | | | (309,143) | | | |
| Cash flows from financing activities: | | | | | |
| | | | | |
| Repayments of mortgage notes payable | (1,069) | | | (1,122) | | | |
| | | | | |
| Repayment / redemption of unsecured senior notes | (1,000,000) | | | (850,000) | | | |
| | | | | |
| Borrowings on unsecured line of credit | — | | | 360,000 | | | |
| Repayments of unsecured line of credit | — | | | (60,000) | | | |
| | | | | | | | | | | | | |
BXP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) |
| | Three months ended March 31, |
| | 2026 | | 2025 | | |
| Borrowings on unsecured term loans | — | | | 700,000 | | | |
| Repayment of unsecured term loans | — | | | (700,000) | | | |
| Payments on finance lease obligations | (3,452) | | | (3,344) | | | |
| Borrowings on commercial paper program | 2,923,011 | | | 1,287,523 | | | |
| Repayments on commercial paper program | (2,923,011) | | | (1,287,523) | | | |
| Deferred financing costs | (113) | | | (14,102) | | | |
| | | | | |
| Net activity from equity transactions | (896) | | | (821) | | | |
| Dividends and distributions | (124,089) | | | (173,118) | | | |
| Contributions from noncontrolling interests in property partnerships | 13,924 | | | 5,150 | | | |
| Distributions to noncontrolling interests in property partnerships | (22,610) | | | (19,525) | | | |
| | | | | |
| Net cash used in financing activities | (1,138,305) | | | (756,882) | | | |
| Net increase (decrease) in cash and cash equivalents and cash held in escrows | (976,012) | | | (855,989) | | | |
| Cash and cash equivalents and cash held in escrows, beginning of period | 1,557,266 | | | 1,335,196 | | | |
| Cash and cash equivalents and cash held in escrows, end of period | $ | 581,254 | | | $ | 479,207 | | | |
| | | | | |
| Reconciliation of cash and cash equivalents and cash held in escrows: | | | | | |
| Cash and cash equivalents, beginning of period | $ | 1,478,206 | | | $ | 1,254,882 | | | |
| Cash held in escrows, beginning of period | 79,060 | | | 80,314 | | | |
| Cash and cash equivalents and cash held in escrows, beginning of period | $ | 1,557,266 | | | $ | 1,335,196 | | | |
| | | | | |
| Cash and cash equivalents, end of period | $ | 512,783 | | | $ | 398,126 | | | |
| Cash held in escrows, end of period | 68,471 | | | 81,081 | | | |
| Cash and cash equivalents and cash held in escrows, end of period | $ | 581,254 | | | $ | 479,207 | | | |
| | | | | |
| Supplemental disclosures: | | | | | |
| Cash paid for interest (net of amounts capitalized) | $ | 161,391 | | | $ | 175,700 | | | |
| Interest capitalized | $ | 16,490 | | | $ | 10,317 | | | |
| | | | | |
| Non-cash investing and financing activities: | | | | | |
| Write-off of fully depreciated real estate | $ | (25,873) | | | $ | (20,549) | | | |
| | | | | |
| Change in real estate included in accounts payable and accrued expenses | $ | (9,163) | | | $ | 15,198 | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Non-cash contributions from noncontrolling interests in property partnerships, net | $ | 10 | | | $ | 281 | | | |
| Capitalized operating lease costs | $ | 8,049 | | | $ | 7,548 | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Dividends and distributions declared but not paid | $ | 124,018 | | | $ | 172,674 | | | |
| Conversions of noncontrolling interests to stockholders’ equity | $ | 1,532 | | | $ | 3,676 | | | |
| Issuance of restricted securities to employees and non-employee directors | $ | 45,481 | | | $ | 42,281 | | | |
The accompanying notes are an integral part of these consolidated financial statements.
| | | | | | | | | | | | | | |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except for unit amounts) |
| | March 31, 2026 | | December 31, 2025 |
| ASSETS | | | | |
Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $8,083,218 and $8,005,124 at March 31, 2026 and December 31, 2025, respectively) | | $ | 28,018,010 | | | $ | 27,884,397 | |
Right of use assets - finance leases (amounts related to VIEs of $21,000 and $21,000 at March 31, 2026 and December 31, 2025, respectively) | | 372,476 | | | 372,470 | |
| Right of use assets - operating leases | | 321,030 | | | 325,841 | |
Less: accumulated depreciation (amounts related to VIEs of $(1,805,748) and $(1,763,988) at March 31, 2026 and December 31, 2025, respectively) | | (8,034,990) | | | (7,906,629) | |
| Total real estate | | 20,676,526 | | | 20,676,079 | |
Cash and cash equivalents (amounts related to VIEs of $193,689 and $255,631 at March 31, 2026 and December 31, 2025, respectively) | | 512,783 | | | 1,478,206 | |
Cash held in escrows (amounts related to VIEs of $5,381 and $10,319 at March 31, 2026 and December 31, 2025, respectively) | | 68,471 | | | 79,060 | |
| Investments in securities | | 42,072 | | | 44,614 | |
Tenant and other receivables, net (amounts related to VIEs of $38,754 and $30,989 at March 31, 2026 and December 31, 2025, respectively) | | 90,137 | | | 92,625 | |
| Note receivable, net | | 10,071 | | | 9,373 | |
| Related party notes receivables, net | | 31,447 | | | 28,346 | |
| Sales-type lease receivable, net | | 15,921 | | | 15,672 | |
Accrued rental income, net (amounts related to VIEs of $474,838 and $470,734 at March 31, 2026 and December 31, 2025, respectively) | | 1,558,226 | | | 1,538,515 | |
Deferred charges, net (amounts related to VIEs of $202,275 and $204,924 at March 31, 2026 and December 31, 2025, respectively) | | 830,917 | | | 847,690 | |
Prepaid expenses and other assets (amounts related to VIEs of $48,202 and $14,509 at March 31, 2026 and December 31, 2025, respectively) | | 188,819 | | | 108,105 | |
| Investments in unconsolidated joint ventures | | 854,722 | | | 999,309 | |
| Assets held for sale | | — | | | 24,770 | |
| Total assets | | $ | 24,880,112 | | | $ | 25,942,364 | |
| LIABILITIES AND CAPITAL | | | | |
| Liabilities: | | | | |
Mortgage notes payable, net (amounts related to VIEs of $3,288,081 and $3,286,870 at March 31, 2026 and December 31, 2025, respectively) | | $ | 4,280,639 | | | $ | 4,280,067 | |
| Unsecured senior notes, net | | 8,808,674 | | | 9,806,100 | |
| Unsecured exchangeable senior notes, net | | 977,387 | | | 976,263 | |
| Unsecured line of credit | | — | | | — | |
| Unsecured term loans, net | | 797,309 | | | 797,053 | |
| Unsecured commercial paper | | 750,000 | | | 750,000 | |
Lease liabilities - finance leases (amounts related to VIEs of $21,106 and $21,074 at March 31, 2026 and December 31, 2025, respectively) | | 357,039 | | | 360,039 | |
| Lease liabilities - operating leases | | 387,481 | | | 389,213 | |
Accounts payable and accrued expenses (amounts related to VIEs of $80,255 and $88,849 at March 31, 2026 and December 31, 2025, respectively) | | 418,443 | | | 480,017 | |
| Dividends and distributions payable | | 124,018 | | | 123,753 | |
Accrued interest payable | | 124,068 | | | 125,345 | |
| | | | |
Other liabilities (amounts related to VIEs of $85,594 and $95,209 at March 31, 2026 and December 31, 2025, respectively) | | 352,813 | | | 386,074 | |
| | | | |
| Total liabilities | | 17,377,871 | | | 18,473,924 | |
| | | | | | | | | | | | | | |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except for unit amounts) |
| | March 31, 2026 | | December 31, 2025 |
Commitments and contingencies (See Note 8) | | | | |
Redeemable deferred stock units— 116,733 and 111,701 units outstanding at redemption value at March 31, 2026 and December 31, 2025, respectively | | 6,058 | | | 7,538 | |
| Noncontrolling interests: | | | | |
Redeemable partnership units— 15,675,504 and 15,590,009 common units and 3,111,708 and 2,662,140 long term incentive units outstanding at redemption value at March 31, 2026 and December 31, 2025, respectively | | 1,033,549 | | | 1,272,719 | |
| Capital: | | | | |
Boston Properties Limited Partnership partners’ capital— 1,774,632 and 1,768,004 general partner units and 156,901,331 and 156,780,294 limited partner units outstanding at March 31, 2026 and December 31, 2025, respectively | | 4,486,430 | | | 4,230,155 | |
| Accumulated other comprehensive loss | | (6,082) | | | (12,921) | |
| Total partners’ capital | | 4,480,348 | | | 4,217,234 | |
| Noncontrolling interests in property partnerships | | 1,982,286 | | | 1,970,949 | |
| Total capital | | 6,462,634 | | | 6,188,183 | |
| Total liabilities and capital | | $ | 24,880,112 | | | $ | 25,942,364 | |
The accompanying notes are an integral part of these consolidated financial statements.
BOSTON PROPERTIES LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except for per unit amounts)
| | | | | | | | | | | | | | | | | |
| | Three months ended March 31, | | |
| | 2026 | | 2025 | | | | | | |
| Revenue | | | | | | | | | |
| Lease | $ | 818,156 | | | $ | 811,102 | | | | | | | |
| Parking and other | 30,814 | | | 30,242 | | | | | | | |
| Hotel | 9,101 | | | 9,597 | | | | | | | |
| Development and management services | 9,207 | | | 9,775 | | | | | | | |
Direct reimbursements of payroll and related costs from management services contracts | 4,870 | | | 4,499 | | | | | | | |
| Total revenue | 872,148 | | | 865,215 | | | | | | | |
| Expenses | | | | | | | | | |
| Operating | | | | | | | | | |
| Rental | 344,082 | | | 331,578 | | | | | | | |
| Hotel | 7,982 | | | 7,565 | | | | | | | |
| General and administrative | 59,341 | | | 52,284 | | | | | | | |
| Payroll and related costs from management services contracts | 4,870 | | | 4,499 | | | | | | | |
| Transaction costs | 129 | | | 768 | | | | | | | |
| Depreciation and amortization | 226,305 | | | 218,404 | | | | | | | |
| Total expenses | 642,709 | | | 615,098 | | | | | | | |
| Other income (expense) | | | | | | | | | |
| Income (loss) from unconsolidated joint ventures | 35,413 | | | (2,139) | | | | | | | |
| Gains on sales of real estate | 13,402 | | | — | | | | | | | |
| Loss on sales-type lease | — | | | (2,490) | | | | | | | |
| Interest and other income (loss) | 8,885 | | | 7,750 | | | | | | | |
| Losses from investments in securities | (566) | | | (365) | | | | | | | |
| | | | | | | | | |
| Unrealized gain (loss) on non-real estate investments | 188 | | | (483) | | | | | | | |
| | | | | | | | | |
| Loss from early extinguishment of debt | — | | | (338) | | | | | | | |
| Interest expense | (152,093) | | | (163,444) | | | | | | | |
| Net income | 134,668 | | | 88,608 | | | | | | | |
| Net income attributable to noncontrolling interests | | | | | | | | | |
| Noncontrolling interests in property partnerships | (19,869) | | | (18,749) | | | | | | | |
| Net income attributable to Boston Properties Limited Partnership | $ | 114,799 | | | $ | 69,859 | | | | | | | |
| Basic earnings per common unit attributable to Boston Properties Limited Partnership | | | | | | | | | |
| Net income | $ | 0.65 | | | $ | 0.40 | | | | | | | |
| Weighted average number of common units outstanding | 176,318 | | | 175,752 | | | | | | | |
| Diluted earnings per common unit attributable to Boston Properties Limited Partnership | | | | | | | | | |
| Net income | $ | 0.65 | | | $ | 0.40 | | | | | | | |
Weighted average number of common and common equivalent units outstanding | 176,819 | | | 176,182 | | | | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
BOSTON PROPERTIES LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited and in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended March 31, | | |
| | | 2026 | | 2025 | | | | | | |
| Net income | | $ | 134,668 | | | $ | 88,608 | | | | | | | |
| Other comprehensive income (loss): | | | | | | | | | | |
| Effective portion of interest rate contracts | | 6,073 | | | (13,276) | | | | | | | |
| Amortization of interest rate contracts (1) | | 1,676 | | | 3,081 | | | | | | | |
| Other comprehensive income (loss) | | 7,749 | | | (10,195) | | | | | | | |
| Comprehensive income | | 142,417 | | | 78,413 | | | | | | | |
| Comprehensive income attributable to noncontrolling interests | | (20,013) | | | (18,893) | | | | | | | |
| Comprehensive income attributable to Boston Properties Limited Partnership | | $ | 122,404 | | | $ | 59,520 | | | | | | | |
_______________
(1)Amounts reclassified from comprehensive income (loss) primarily to interest expense within Boston Properties Limited Partnership’s Consolidated Statements of Operations.
The accompanying notes are an integral part of these consolidated financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CAPITAL AND NONCONTROLLING INTERESTS (unaudited and in thousands) |
| Units | | Capital | | |
| General Partner | | Limited Partner | | Partners’ Capital (General and Limited Partners) | | Accumulated
Other
Comprehensive Loss | | Noncontrolling
Interests - Property Partnerships | | Total Capital | | Noncontrolling Interests - Redeemable Partnership Units |
| | |
| Equity, December 31, 2025 | 1,768 | | | 156,780 | | | $ | 4,230,155 | | | $ | (12,921) | | | $ | 1,970,949 | | | $ | 6,188,183 | | | $ | 1,272,719 | |
| Net activity from contributions and unearned compensation | 4 | | | 74 | | | 2,888 | | | — | | | — | | | 2,888 | | | 23,016 | |
| Allocated net income for the period | — | | | — | | | 103,238 | | | — | | | 19,869 | | | 123,107 | | | 11,561 | |
| Distributions | — | | | — | | | (111,073) | | | — | | | — | | | (111,073) | | | (13,281) | |
| Conversion of redeemable partnership units | 3 | | | 47 | | | 1,532 | | | — | | | — | | | 1,532 | | | (1,532) | |
| Adjustment to reflect redeemable partnership units at redemption value | — | | | — | | | 259,700 | | | — | | | — | | | 259,700 | | | (259,700) | |
| Effective portion of interest rate contracts | — | | | — | | | — | | | 5,462 | | | — | | | 5,462 | | | 611 | |
| Amortization of interest rate contracts | — | | | — | | | — | | | 1,377 | | | 144 | | | 1,521 | | | 155 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | | | — | | | (10) | | | — | | | 13,934 | | | 13,924 | | | — | |
| Distributions to noncontrolling interests in property partnerships | — | | | — | | | — | | | — | | | (22,610) | | | (22,610) | | | — | |
Equity, March 31, 2026 | 1,775 | | | 156,901 | | | $ | 4,486,430 | | | $ | (6,082) | | | $ | 1,982,286 | | | $ | 6,462,634 | | | $ | 1,033,549 | |
| | | | | | | | | | | | | |
| Equity, December 31, 2024 | 1,762 | | | 156,413 | | | $ | 4,391,985 | | | $ | (2,072) | | | $ | 1,933,545 | | | $ | 6,323,458 | | | $ | 1,378,573 | |
| Net activity from contributions and unearned compensation | 1 | | | 35 | | | 1,702 | | | — | | | — | | | 1,702 | | | 20,989 | |
| Allocated net income for the period | — | | | — | | | 62,880 | | | — | | | 18,749 | | | 81,629 | | | 6,979 | |
| Distributions | — | | | — | | | (155,157) | | | — | | | — | | | (155,157) | | | (18,149) | |
| Conversion of redeemable partnership units | 4 | | | 108 | | | 3,676 | | | — | | | — | | | 3,676 | | | (3,676) | |
| Adjustment to reflect redeemable partnership units at redemption value | — | | | — | | | 103,578 | | | — | | | — | | | 103,578 | | | (103,578) | |
| Effective portion of interest rate contracts | — | | | — | | | — | | | (11,950) | | | — | | | (11,950) | | | (1,326) | |
| Amortization of interest rate contracts | — | | | — | | | — | | | 2,643 | | | 144 | | | 2,787 | | | 294 | |
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | | | — | | | (281) | | | — | | | 5,431 | | | 5,150 | | | — | |
| Distributions to noncontrolling interests in property partnerships | — | | | — | | | — | | | — | | | (19,525) | | | (19,525) | | | — | |
Equity, March 31, 2025 | 1,767 | | | 156,556 | | | $ | 4,408,383 | | | $ | (11,379) | | | $ | 1,938,344 | | | $ | 6,335,348 | | | $ | 1,280,106 | |
The accompanying notes are an integral part of these consolidated financial statements.
| | | | | | | | | | | | | |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) |
| | Three months ended March 31, |
| | 2026 | | 2025 | | |
| Cash flows from operating activities: | | | | | |
| Net income | $ | 134,668 | | | $ | 88,608 | | | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | |
| Depreciation and amortization | 226,305 | | | 218,404 | | | |
| | | | | |
| Amortization of right of use assets - operating leases | (123) | | | 203 | | | |
| Amortization of sales type lease | (245) | | | (281) | | | |
| Non-cash compensation expense | 25,320 | | | 22,917 | | | |
| (Income) loss from unconsolidated joint ventures | (35,413) | | | 2,139 | | | |
| Distributions of net cash flow from operations of unconsolidated joint ventures | 10,335 | | | 17,053 | | | |
| Losses from investments in securities | 566 | | | 365 | | | |
| Allowance for current expected credit losses | 44 | | | (23) | | | |
| Non-cash portion of interest expense | 8,021 | | | 9,257 | | | |
| Loss from early extinguishments of debt | — | | | 338 | | | |
| Gains on sales of real estate | (13,402) | | | — | | | |
| Loss on sales-type lease | — | | | 2,490 | | | |
| Unrealized (gain) loss on non-real estate investments | (188) | | | 483 | | | |
| Change in assets and liabilities: | | | | | |
| Tenant and other receivables, net | 1,261 | | | 1,903 | | | |
| Accrued rental income, net | (20,508) | | | (28,178) | | | |
| Prepaid expenses and other assets | (79,190) | | | (73,910) | | | |
| | | | | |
| Lease liabilities - operating leases | (4,848) | | | (162) | | | |
| Accounts payable and accrued expenses | (30,961) | | | (14,664) | | | |
| Accrued interest payable | (1,277) | | | (7,660) | | | |
| Other liabilities | (25,511) | | | (11,862) | | | |
| Tenant leasing costs | (38,388) | | | (17,384) | | | |
| Total adjustments | 21,798 | | | 121,428 | | | |
| Net cash provided by operating activities | 156,466 | | | 210,036 | | | |
| Cash flows from investing activities: | | | | | |
| | | | | |
| Construction in progress | (190,438) | | | (138,796) | | | |
| Building, pre-development and other capital improvements | (30,765) | | | (57,395) | | | |
| Tenant improvements | (67,095) | | | (60,338) | | | |
| Proceeds from sales of real estate | 124,661 | | | — | | | |
| | | | | |
| | | | | |
| Capital contributions to unconsolidated joint ventures | (43,167) | | | (52,611) | | | |
| Capital distributions from unconsolidated joint ventures | 183 | | | — | | | |
| Proceeds from sales of investments in unconsolidated joint ventures | 214,733 | | | — | | | |
| Investment in non-real estate investments | (412) | | | (434) | | | |
| Issuance of note receivables (including related party) | (3,849) | | | (600) | | | |
| | | | | |
| Investments in securities, net | 1,976 | | | 1,031 | | | |
| Net cash provided by (used in) investing activities | 5,827 | | | (309,143) | | | |
| Cash flows from financing activities: | | | | | |
| | | | | |
| Repayments of mortgage notes payable | (1,069) | | | (1,122) | | | |
| | | | | |
| Repayment / redemption of unsecured senior notes | (1,000,000) | | | (850,000) | | | |
| | | | | |
| Borrowings on unsecured line of credit | — | | | 360,000 | | | |
| | | | | | | | | | | | | |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) |
| | Three months ended March 31, |
| | 2026 | | 2025 | | |
| Repayments of unsecured line of credit | — | | | (60,000) | | | |
| Borrowings on unsecured term loans | — | | | 700,000 | | | |
| Repayment of unsecured term loans | — | | | (700,000) | | | |
| Payments on finance lease obligations | (3,452) | | | (3,344) | | | |
| Borrowings on commercial paper program | 2,923,011 | | | 1,287,523 | | | |
| Repayments on commercial paper program | (2,923,011) | | | (1,287,523) | | | |
| Deferred financing costs | (113) | | | (14,102) | | | |
| | | | | |
| Net activity from equity transactions | (896) | | | (821) | | | |
| Distributions | (124,089) | | | (173,118) | | | |
| Contributions from noncontrolling interests in property partnerships | 13,924 | | | 5,150 | | | |
| Distributions to noncontrolling interests in property partnerships | (22,610) | | | (19,525) | | | |
| | | | | |
| Net cash used in financing activities | (1,138,305) | | | (756,882) | | | |
| Net increase (decrease) in cash and cash equivalents and cash held in escrows | (976,012) | | | (855,989) | | | |
| Cash and cash equivalents and cash held in escrows, beginning of period | 1,557,266 | | | 1,335,196 | | | |
| Cash and cash equivalents and cash held in escrows, end of period | $ | 581,254 | | | $ | 479,207 | | | |
| | | | | |
| Reconciliation of cash and cash equivalents and cash held in escrows: | | | | | |
| Cash and cash equivalents, beginning of period | $ | 1,478,206 | | | $ | 1,254,882 | | | |
| Cash held in escrows, beginning of period | 79,060 | | | 80,314 | | | |
| Cash and cash equivalents and cash held in escrows, beginning of period | $ | 1,557,266 | | | $ | 1,335,196 | | | |
| | | | | |
| Cash and cash equivalents, end of period | $ | 512,783 | | | $ | 398,126 | | | |
| Cash held in escrows, end of period | 68,471 | | | 81,081 | | | |
| Cash and cash equivalents and cash held in escrows, end of period | $ | 581,254 | | | $ | 479,207 | | | |
| | | | | |
| Supplemental disclosures: | | | | | |
| Cash paid for interest (net of amounts capitalized) | $ | 161,391 | | | $ | 175,700 | | | |
| Interest capitalized | $ | 16,490 | | | $ | 10,317 | | | |
| | | | | |
| Non-cash investing and financing activities: | | | | | |
| Write-off of fully depreciated real estate | $ | (25,873) | | | $ | (20,549) | | | |
| | | | | |
| Change in real estate included in accounts payable and accrued expenses | $ | (9,163) | | | $ | 15,198 | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Non-cash contributions from noncontrolling interests in property partnerships, net | $ | 10 | | | $ | 281 | | | |
| Capitalized operating lease costs | $ | 8,049 | | | $ | 7,548 | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Distributions declared but not paid | $ | 124,018 | | | $ | 172,674 | | | |
| Conversions of redeemable partnership units to partners’ capital | $ | 1,532 | | | $ | 3,676 | | | |
| Issuance of restricted securities to employees and non-employee directors | $ | 45,481 | | | $ | 42,281 | | | |
The accompanying notes are an integral part of these consolidated financial statements.
BXP, INC. AND BOSTON PROPERTIES LIMITED PARTNERSHIP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Organization
BXP is a fully integrated, self-administered and self-managed REIT. BXP is the sole general partner of BPLP, its operating partnership, and at March 31, 2026, owned an approximate 89.4% (89.7% at December 31, 2025) general and limited partnership interest in BPLP. Unless stated otherwise or the context requires, the “Company” refers to BXP and its subsidiaries, including BPLP and its consolidated subsidiaries. Partnership interests in BPLP include:
•common units of partnership interest (also referred to as “OP Units”) and
•long term incentive units of partnership interest (also referred to as “LTIP Units”)
Unless specifically noted otherwise, all references to OP Units exclude units held by BXP. A holder of an OP Unit may present the OP Unit to BPLP for redemption at any time (subject to covenants agreed upon at the time of issuance of OP Units to particular holders that may restrict such redemption right for a period of time, generally one year from issuance). Upon presentation of an OP Unit for redemption, BPLP is obligated to redeem the OP Unit for cash equal to the value of a share of common stock of BXP (“Common Stock”). In lieu of such cash redemption, BXP may elect to acquire the OP Unit for one share of Common Stock. Because the number of shares of Common Stock outstanding at all times equals the number of OP Units that BXP owns, one share of Common Stock is generally the economic equivalent of one OP Unit, and the quarterly distribution that may be paid to the holder of an OP Unit equals the quarterly dividend that may be paid to the holder of a share of Common Stock.
The Company uses LTIP Units as a form of time-based, restricted equity compensation and as a form of performance-based equity compensation for employees, and it has previously granted LTIP Units in the form of (1) 2012 outperformance plan awards (“2012 OPP Units”), (2) 2013 - 2026 multi-year, long-term incentive program awards (also referred to as “MYLTIP Units”) and (3) 2025 outperformance plan awards (“2025 OPP Units”), each of which, upon the satisfaction of certain performance-based and time-based vesting conditions, is convertible into one OP Unit. The measurement periods for the 2012 OPP Units and the 2013 - 2023 MYLTIP Units have ended and BXP’s total stockholder return (“TSR”) was sufficient for employees to earn and therefore become eligible to vest in a portion of the awards. Unless and until they are earned, the rights, preferences and privileges of the 2024 - 2026 MYLTIP Units and the 2025 OPP Units differ from other LTIP Units granted to employees (including the 2012 OPP Units and the 2013 - 2023 MYLTIP Units, which have been earned). Therefore, unless specifically noted otherwise, all references to LTIP Units exclude the 2024 - 2026 MYLTIP Units and the 2025 OPP Units. LTIP Units (including the earned 2012 OPP Units and the earned 2013 - 2023 MYLTIP Units), whether vested or not, receive the same quarterly per unit distributions as OP Units, which equal per share dividends on Common Stock (See Notes 9 and 13).
Properties
At March 31, 2026, the Company owned or had joint venture interests in a portfolio of 164 commercial real estate properties (the “Properties”) aggregating approximately 50.4 million rentable square feet of primarily office properties, including six properties under construction/redevelopment totaling approximately 3.4 million rentable square feet. At March 31, 2026, the Properties consisted of:
•143 office properties (including three properties under construction/redevelopment);
•14 retail properties;
•six residential properties (including three properties under construction); and
•one hotel.
2. Summary of Significant Accounting Policies
BXP does not have any other significant assets, liabilities or operations, other than its investment in BPLP, nor does it have employees of its own. BPLP, not BXP, generally executes all significant business relationships other than transactions involving securities of BXP. All majority-owned subsidiaries and joint ventures over which the Company has financial and operating control and variable interest entities (“VIEs”) in which the Company has determined it is the primary beneficiary are included in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for all
other unconsolidated joint ventures using the equity method of accounting. Accordingly, the Company’s share of the earnings of these joint ventures and companies is included in consolidated net income.
The accompanying interim financial statements are unaudited; however, the financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring matters) necessary for a fair statement of the financial statements for these interim periods have been included. The results of operations for the interim periods are not necessarily indicative of the results to be obtained for other interim periods or for the full fiscal year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosure required by GAAP. These financial statements should be read in conjunction with the Company’s financial statements and notes thereto contained in the Company’s Annual Report in the Company’s Form 10-K for its fiscal year ended December 31, 2025.
The Company bases its estimates on historical experience and on various other assumptions that it considers to be reasonable under the circumstances, including the impact of extraordinary events, the results of which form the basis for making significant judgments about the carrying values of assets and liabilities, assessments of future collectability, and other areas of the financial statements that are impacted by the use of estimates. Actual results may differ from these estimates under different assumptions or conditions.
Variable Interest Entities (VIEs)
Consolidated VIEs are those for which the Company is considered to be the primary beneficiary of a VIE. The primary beneficiary is the entity that has a controlling financial interest in the VIE, which is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance and (2) the obligation to absorb losses or the right to receive the returns from the VIE that could potentially be significant to the VIE. The assets of each VIE are only available to satisfy such VIE's respective liabilities. The Company has identified 11 entities that are VIEs as of March 31, 2026 and has determined that it is the primary beneficiary for eight of these entities as of March 31, 2026.
Consolidated Variable Interest Entities
As of March 31, 2026, BXP has identified eight consolidated VIEs, including BPLP. Excluding BPLP, the consolidated VIEs consisted of (i) the following six in-service properties: 767 Fifth Avenue (the General Motors Building), 7 Times Square, 601 Lexington Avenue, 300 Binney Street, Atlantic Wharf Office Building and 100 Federal Street and (ii) 290 Binney Street, which is currently under development.
The Company consolidates these VIEs because it is the primary beneficiary. The third parties’ interests in these consolidated entities (excluding BPLP’s interest) are reflected as noncontrolling interests in property partnerships in the accompanying consolidated financial statements (See Note 9).
In addition, BXP’s only significant asset is its investment in BPLP and, consequently, substantially all of BXP’s assets and liabilities are the assets and liabilities of BPLP.
Unconsolidated Variable Interest Entities
As of March 31, 2026, BXP has identified three unconsolidated joint venture entities that are classified as VIEs. The CAB 290 Coles Venture LLC, CAB 290 Coles Holdco LLC, and 17 Hartwell JV LLC joint ventures are VIEs because they do not have sufficient equity at risk. In addition, the Company does not consolidate the entities as it does not have the power to direct the activities that, when taken together, most significantly impact the VIEs’ performance and, therefore, the Company is not considered to be the primary beneficiary.
Fair Value Measurements
The Company follows the authoritative guidance for fair value measurements when valuing its financial instruments for disclosure purposes. Because the Company’s valuations of its financial instruments are based on the Levels as defined in the Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements” (“ASC 820”) and involve the use of estimates, the actual fair values of its financial instruments may differ materially from those estimates. In addition, the Company’s estimated fair values for these instruments as of the end of the applicable reporting period are not projections of, nor necessarily indicative of, estimated or actual fair values in future reporting periods.
At March 31, 2026 and December 31, 2025, the Company had $750.0 million outstanding under its unsecured commercial paper program. Due to their short-term maturity and stated interest rates that approximate current market rates, the fair value of outstanding commercial paper borrowings approximates the Company's carrying amount at March 31, 2026 and December 31, 2025.
The Company’s non-real estate investments are shown within Prepaid Expenses and Other Assets on the Consolidated Balance Sheets and were approximately $11.5 million and $10.9 million at March 31, 2026 and December 31, 2025, respectively. The non-real estate investments utilize net asset value as the practical expedient.
Financial Assets and Liabilities Not Measured at Fair Value
The following table presents the Levels at which the Company’s non-recurring fair value financial instruments are categorized as defined in ASC 820, as well as the Company’s aggregate carrying value and corresponding estimate of fair value as of March 31, 2026 and December 31, 2025 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | March 31, 2026 | | December 31, 2025 |
| Level | Financial Instrument | | Carrying
Amount | | Estimated
Fair Value | | Carrying
Amount | | Estimated
Fair Value |
| | | | | | | | | |
| | | | | | | | | |
| Level 3 | Related party note receivable, net | | $ | 31,447 | | | $ | 31,935 | | | $ | 28,346 | | | $ | 28,716 | |
| Level 3 | Note receivable, net | | 10,071 | | | 10,591 | | | 9,373 | | | 9,858 | |
| Level 3 | Sales-type lease receivable, net | | 15,921 | | | 13,955 | | | 15,672 | | | 13,911 | |
| Total | | $ | 57,439 | | | $ | 56,481 | | | $ | 53,391 | | | $ | 52,485 | |
| | | | | | | | | |
| Level 1 | Unsecured senior notes, net (1) | | $ | 8,808,674 | | | $ | 8,415,599 | | | $ | 9,806,100 | | | $ | 9,554,844 | |
| Level 1 | Unsecured exchangeable senior notes, net (1) | | 977,387 | | | 912,005 | | | 976,263 | | | 958,745 | |
| Level 1 | Unsecured commercial paper | | 750,000 | | | 750,000 | | | 750,000 | | | 750,000 | |
| Subtotal | | $ | 10,536,061 | | | $ | 10,077,604 | | | $ | 11,532,363 | | | $ | 11,263,589 | |
| | | | | | | | | |
| Level 3 | Mortgage notes payable, net | | $ | 4,280,639 | | | $ | 3,994,557 | | | $ | 4,280,067 | | | $ | 4,010,151 | |
| Level 3 | Unsecured line of credit | | — | | | — | | | — | | | — | |
| Level 3 | Unsecured term loan, net | | 797,309 | | | 796,446 | | | 797,053 | | | 805,687 | |
| Subtotal | | $ | 5,077,948 | | | $ | 4,791,003 | | | $ | 5,077,120 | | | $ | 4,815,838 | |
| Total | | $ | 15,614,009 | | | $ | 14,868,607 | | | $ | 16,609,483 | | | $ | 16,079,427 | |
_______________(1)If trading volume for the period is low, the valuation could be categorized as Level 2.
Recurring Fair Value - Derivatives
In addition to the financial instruments noted above, the Company uses interest rate swap agreements to manage its interest rate risk (See Note 7). The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. The Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.
The following table presents the aggregate fair value of the Company’s interest rate swaps as of March 31, 2026 and December 31, 2025 (in thousands):
| | | | | | | | | | | | | | |
| Fair value | | March 31, 2026 | | December 31, 2025 |
| Interest rate swaps | | $ | (3,845) | | | $ | (8,283) | |
Recurring Fair Value - Investments
The Company accounts for investments in equity securities at fair value, with gains or losses resulting from changes in fair value recognized currently in earnings. The Company maintains deferred compensation plans that are designed to allow each officer and non-employee director of BXP to defer a portion of the officer’s income and the non-employee director’s compensation, respectively, on a pre-tax basis and receive a tax-deferred return on the amounts deferred based on the performance of specific investments selected by the plan participant. The Company’s obligation under the plans is that of an unsecured promise to pay the deferred compensation to the plan participants in the future. At March 31, 2026 and December 31, 2025, the Company had maintained approximately $41.9 million and $44.4 million, respectively, in separate accounts, which are not restricted as to their use. The Company recognized losses of approximately $0.6 million and $0.4 million on its investments in the accounts associated with the Company’s deferred compensation plans during the three months ended March 31, 2026 and March 31, 2025, respectively, primarily due to the observable change in fair value.
3. Real Estate
Real estate consisted of the following at March 31, 2026 and December 31, 2025 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | BXP | | BPLP |
| | March 31, 2026 | | December 31, 2025 | | March 31, 2026 | | December 31, 2025 |
| Land | | $ | 5,222,387 | | | $ | 5,243,760 | | | $ | 5,129,873 | | | $ | 5,151,246 | |
| Right of use assets - finance leases | | 372,476 | | | 372,470 | | | 372,476 | | | 372,470 | |
| Right of use assets - operating leases | | 321,030 | | | 325,841 | | | 321,030 | | | 325,841 | |
Land held for future development (1) | | 493,212 | | | 518,492 | | | 493,212 | | | 518,492 | |
| Buildings and improvements | | 16,873,371 | | | 16,908,060 | | | 16,608,403 | | | 16,643,092 | |
| Tenant improvements | | 4,107,082 | | | 4,042,150 | | | 4,107,082 | | | 4,042,150 | |
| Furniture, fixtures and equipment | | 53,367 | | | 54,160 | | | 53,367 | | | 54,160 | |
| Construction in progress | | 1,626,073 | | | 1,475,257 | | | 1,626,073 | | | 1,475,257 | |
| Total | | 29,068,998 | | | 28,940,190 | | | 28,711,516 | | | 28,582,708 | |
| Less: Accumulated depreciation | | (8,170,334) | | | (8,040,311) | | | (8,034,990) | | | (7,906,629) | |
| | $ | 20,898,664 | | | $ | 20,899,879 | | | $ | 20,676,526 | | | $ | 20,676,079 | |
_______________
(1)Includes pre-development costs.
Development
On January 16, 2026, the Company fully placed in-service Reston Next Retail, located in Reston, Virginia. Reston Next Retail is a retail development with approximately 30,000 net rentable square feet.
Dispositions
The following table represents the assets that were sold during the three months ended March 31, 2026 and the gains (losses) on sales of real estate recognized by each of BXP and BPLP (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Gross Sale Price | | Net Cash Proceeds (1) | | Gain (Loss) on Sale (2) |
| Property | | Location | | Date Disposed | | Square Feet | | | | BXP | | BPLP |
| Land: | | | | | | | | | | | | | | |
North First Business Park (3) | San Jose, CA | | January 14, 2026 | | 191,000 | | | $ | 50,500 | | | $ | 49,437 | | | $ | (229) | | | $ | (229) | |
Shady Grove Parcel 1 (3) | Rockville, MD | | February 5, 2026 | | N/A | | 24,650 | | | 23,695 | | | (744) | | | (744) | |
| | | | | | 191,000 | | | 75,150 | | | 73,132 | | | (973) | | | (973) | |
| Residential: | | | | | | | | | | | | | | |
The Lofts at Atlantic Wharf (4) | Boston, MA | | February 25, 2026 | 87,000 | | | 55,500 | | | 54,209 | | | 14,765 | | | 14,765 | |
| | | | | | 87,000 | | | 55,500 | | | 54,209 | | | 14,765 | | | 14,765 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Total Dispositions | | | | | | 278,000 | | | $ | 130,650 | | | $ | 127,341 | | | $ | 13,792 | | | $ | 13,792 | |
_______________(1)Excludes approximately $2.7 million of additional payment obligations related to sales that occurred in prior periods.
(2)Excludes approximately $0.3 million of loss in connection with the sale of the Company’s entire 50% ownership interest in the joint venture entity that owned Gateway Commons as a result of the Company's outstanding receivable balance for development and construction management fees that were forfeited (see Note 5), and $0.1 million of loss related to sales that occurred in prior periods.
(3)The Company had previously recognized impairment losses for these properties.
(4)The fair value of the real estate disposed exceeded the carrying value.
4. Leases
The following table summarizes the components of lease revenue recognized under the Company’s operating and sales-type leases for the three months ended March 31, 2026 and 2025 and included within the Company's Consolidated Statements of Operations (in thousands):
| | | | | | | | | | | | | | | | | | |
| | Three months ended March 31, | | |
| Lease Revenue | | 2026 | | 2025 | | | | |
| Fixed contractual payments | | $ | 654,667 | | | $ | 666,235 | | | | | |
| Variable lease payments | | 163,213 | | | 144,560 | | | | | |
| Sales-type lease revenue | | 276 | | | 307 | | | | | |
| | $ | 818,156 | | | $ | 811,102 | | | | | |
5. Investments in Unconsolidated Joint Ventures
The investments in unconsolidated joint ventures consist of the following at March 31, 2026 and December 31, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Carrying Value of Investment (1) |
| Entity | | Property | | Nominal % Ownership | | March 31, 2026 | | December 31,
2025 |
| | | | | | (in thousands) |
| WP Project Developer LLC | | Wisconsin Place Land and Infrastructure | | 33.33 | % | (2) | $ | 28,768 | | | $ | 29,085 | |
| 500 North Capitol Venture LLC | | 500 North Capitol Street, NW | | 30.00 | % | | (12,894) | | | (12,655) | |
| 501 K Street LLC | | 1001 6th Street | | 50.00 | % | | 45,826 | | | 45,724 | |
| Podium Venture LLC | | The Hub on Causeway - Podium | | 50.00 | % | | 52,922 | | | 54,742 | |
| Residential Tower Developer LLC | | Hub50House | | 50.00 | % | | 33,355 | | | 33,942 | |
| Hotel Tower Developer LLC | | The Hub on Causeway - Hotel Air Rights | | 50.00 | % | | 12,188 | | | 12,021 | |
| Office Venture LLC | | 100 Causeway Street | | 50.00 | % | | 49,104 | | | 48,924 | |
| 1265 Main Office JV LLC | | 1265 Main Street | | 50.00 | % | | 2,977 | | | 3,091 | |
| BNY Tower Holdings LLC | | Dock 72 | | 50.00 | % | (3) | 82,392 | | | 83,547 | |
| CA-Colorado Center, LLC | | Colorado Center | | 50.00 | % | | 68,220 | | | 69,959 | |
| 7750 Wisconsin Avenue LLC | | 7750 Wisconsin Avenue | | 50.00 | % | (4) | — | | | 47,144 | |
| BP-M 3HB Venture LLC | | 3 Hudson Boulevard | | 25.00 | % | | 108,394 | | | 109,451 | |
| Platform 16 Holdings LP | | Platform 16 | | 55.00 | % | | 58,613 | | | 58,561 | |
| Gateway Portfolio Holdings LLC | | Gateway Commons | | 50.00 | % | (4) | — | | | 125,576 | |
| Rosecrans-Sepulveda Partners 4, LLC | | Beach Cities Media Campus | | 50.00 | % | (5) | 84 | | | 272 | |
| Safeco Plaza REIT LLC | | Safeco Plaza | | 33.67 | % | (6) | (2,772) | | | (2,557) | |
| 360 PAS Holdco LLC | | 360 Park Avenue South | | 71.11 | % | (7) | 100,534 | | | 104,778 | |
| PR II/BXP Reston Gateway LLC | | Skymark - Reston Next Residential | | 20.00 | % | | 14,273 | | | 14,506 | |
| 200 Fifth Avenue JV LLC | | 200 Fifth Avenue | | 26.69 | % | | 80,016 | | | 74,747 | |
| ABXP Worldgate Investments LLC | | 13100 and 13150 Worldgate Drive | | 50.00 | % | | 22,215 | | | 21,995 | |
| CAB 290 Coles Venture LLC | | 290 Coles Street - Common Equity | | 19.46 | % | (8) | 19,943 | | | 19,928 | |
| CAB 290 Coles Holdco LLC | | 290 Coles Street - Preferred Equity | | — | % | (8)(9) | 61,460 | | | 30,362 | |
| 17 Hartwell Avenue JV LLC | | 17 Hartwell Avenue | | 20.00 | % | (8) | 13,022 | | | 10,567 | |
| | | | | | $ | 838,640 | | | $ | 983,710 | |
_______________
(1)Investments with deficit balances aggregating approximately $16.1 million and $15.6 million at March 31, 2026 and December 31, 2025, respectively, are included within Other Liabilities in the Company’s Consolidated Balance Sheets.
(2)The Company’s wholly-owned subsidiary that owns Wisconsin Place Office also owns a 33.33% interest in the joint venture entity that owns the land, parking garage and infrastructure of the project.
(3)This investment includes net equity balances from the amenity joint venture. The amenity joint venture had a deficit balance of approximately $0.4 million at March 31, 2026 and December 31, 2025.
(4)The Company sold its entire ownership interest during the three months ended March 31, 2026 (See “Dispositions” below in this Note 5.)
(5)The Company completed the sale of the property on September 17, 2025 and is in the process of dissolving this joint venture.
(6)The Company’s ownership includes (1) a 33.0% direct interest in the joint venture, and (2) an additional 1.0% interest in each of the two entities through which each partner owns its interest in the joint venture.
(7)The Company’s ownership includes (1) a 35.79% direct interest in the joint venture, (2) an additional 35.02% indirect ownership in the joint venture, and (3) an additional 1.0% interest in the entity through which the partner owns its interest in the joint venture.
(8)This entity is a VIE (See Note 2).
(9)The Company agreed to fund up to $65.0 million of the required capital through its preferred equity investment. The Company’s preferred equity investment will earn and accrue a 13.0% internal rate of return (“IRR”) and is to be redeemed, in full, upon the earlier of two years after stabilization of the property or March 5, 2030.
Certain of the Company’s unconsolidated joint venture agreements include provisions whereby, at certain specified times, each partner has the right to initiate a purchase or sale of its interest in the joint venture. Under certain of the Company’s joint venture agreements, if certain return thresholds are achieved, one or more partners could be entitled to receive an additional promoted interest or payments.
The combined summarized balance sheets of the Company’s unconsolidated joint ventures are as follows:
| | | | | | | | | | | |
| March 31, 2026 | | December 31, 2025 |
| | (in thousands) |
| ASSETS | | | |
Real estate and development in process, net (1) (2) | $ | 4,258,444 | | | $ | 4,786,058 | |
Other assets (3) | 616,427 | | | 672,776 | |
| Total assets | $ | 4,874,871 | | | $ | 5,458,834 | |
| LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY | | | |
| Mortgage and notes payable, net | $ | 2,658,548 | | | $ | 2,905,065 | |
Other liabilities (4) | 159,592 | | | 189,125 | |
| Members’/Partners’ equity | 2,056,731 | | | 2,364,644 | |
| Total liabilities and members’/partners’ equity | $ | 4,874,871 | | | $ | 5,458,834 | |
| Company’s share of equity | $ | 945,196 | | | $ | 1,084,806 | |
Basis differentials (2) (5) | (106,556) | | | (101,096) | |
Carrying value of the Company’s investments in unconsolidated joint ventures (6) | $ | 838,640 | | | $ | 983,710 | |
_______________
(1)At March 31, 2026 and December 31, 2025, this amount included right of use assets - operating leases totaling approximately $17.6 million and $17.9 million, respectively.
(2)During the year ended December 31, 2025, the joint ventures that own Safeco Plaza and Gateway Commons recognized property-level impairment losses in accordance with ASC 360, “Property, Plant and Equipment”. In prior periods, the Company had impaired its equity method investments to the estimated fair values for these joint ventures; the amounts were recognized as basis differences.
(3)At March 31, 2026 and December 31, 2025, this amount included sales-type lease receivable, net totaling approximately $14.4 million.
(4)At March 31, 2026 and December 31, 2025, this amount included lease liabilities - operating leases totaling approximately $30.4 million and $30.5 million, respectively.
(5)This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials result from impairments of investments, impairments at the property level, acquisitions through joint ventures with no change in control and upon the transfer of assets that were previously owned by the Company into a joint venture. During the year ended December 31, 2025, the joint ventures that own Gateway Commons and Safeco Plaza recognized property level impairments of approximately $425.8 million and $319.5 million, respectively. During the year ended December 31, 2025, the Company recognized an other-than-temporary impairment loss on its investment in Gateway Commons of approximately $145.1 million. The Company’s basis differentials include:
| | | | | | | | | | | |
| March 31, 2026 | | December 31, 2025 |
| Property | (in thousands) |
| Colorado Center | $ | 132,063 | | | $ | 131,356 | |
| 200 Fifth Avenue | 47,766 | | | 48,289 | |
| Safeco Plaza | 34,654 | | | 32,905 | |
| 7750 Wisconsin Avenue | — | | | 7,506 | |
| Gateway Commons | — | | | (700) | |
| Dock 72 | (87,370) | | | (88,420) | |
| 360 Park Avenue South | (110,805) | | | (110,815) | |
| Platform 16 | (142,671) | | | (142,677) | |
| Other basis differentials | 19,807 | | | 21,460 | |
| Total basis differentials | $ | (106,556) | | | $ | (101,096) | |
These basis differentials (excluding land, which is not depreciable) will be amortized over the remaining lives of the related assets and liabilities.
(6)Investments with deficit balances aggregating approximately $16.1 million and $15.6 million at March 31, 2026 and December 31, 2025, respectively, are reflected within Other Liabilities in the Company’s Consolidated Balance Sheets.
The combined summarized statements of operations of the Company’s unconsolidated joint ventures are as follows:
| | | | | | | | | | | | | | | | | |
| | Three months ended March 31, | | |
| | 2026 | | 2025 | | | | | | |
| | (in thousands) |
Total revenue (1) | $ | 102,192 | | | $ | 130,687 | | | | | | | |
| Expenses | | | | | | | | | |
| Operating | 47,931 | | | 53,729 | | | | | | | |
| Transaction costs | 8 | | | 170 | | | | | | | |
| Depreciation and amortization | 31,872 | | | 42,379 | | | | | | | |
| Total expenses | 79,811 | | | 96,278 | | | | | | | |
| Other income (expense) | | | | | | | | | |
| Losses from early extinguishment of debt | — | | | (62) | | | | | | | |
| Interest expense | (39,680) | | | (44,432) | | | | | | | |
| Unrealized loss on derivative instruments | — | | | (8,325) | | | | | | | |
| | | | | | | | | |
Loss on sale of real estate (2) | (2) | | | — | | | | | | | |
| | | | | | | | | |
| Net loss | $ | (17,301) | | | $ | (18,410) | | | | | | | |
| | | | | | | | | |
| Company’s share of net loss | $ | (6,866) | | | $ | (5,796) | | | | | | | |
Gains on sales of investments (3) | 41,234 | | | — | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Basis differential (4) | 1,045 | | | 3,657 | | | | | | | |
| Income (loss) from unconsolidated joint ventures | $ | 35,413 | | | $ | (2,139) | | | | | | | |
_______________
(1)Includes straight-line rent adjustments of approximately $0.5 million and $3.4 million for the three months ended March 31, 2026 and 2025, respectively.
(2)Related to a sale that occurred in a prior period.
(3)During the three months ended March 31, 2026, the Company completed the sale of its entire 50% interest in each of Gateway Commons and 7750 Wisconsin Avenue (See “Dispositions” below).
(4)Includes depreciation and amortization of approximately $(1.0) million and $(1.4) million for the three months ended March 31, 2026 and 2025, respectively. Includes unrealized losses on derivative instruments of approximately $2.2 million for the three months ended March 31, 2025.
Dispositions
The following table represents the Company’s share of the investments that were sold during the three months ended March 31, 2026 and the gains on sales of investments recognized (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property | | Ownership Sold | | Location | | Date Disposed | | Square Feet | | Gross Sale Price | | Net Cash Proceeds | | Gain on Sale |
Gateway Commons (1) | | 50.00% | | South San Francisco, CA | | January 2, 2026 | | 792,700 | | | $ | 150,000 | | | $ | 131,440 | | | $ | 6,394 | |
7750 Wisconsin Avenue (2) | | 50.00% | | Bethesda/Chevy Chase, MD | | March 19, 2026 | | 735,600 | | | 215,000 | | | 83,293 | | | 34,840 | |
| | | | | | | | 1,528,300 | | | $ | 365,000 | | | $ | 214,733 | | | $ | 41,234 | |
_______________ (1)The Company had previously recognized an other-than-temporary impairment loss on its investment.
(2)Gross sale price includes the partner’s assumption of the Company’s share of the mortgage note, which was $126.0 million.
6. Debt
Unsecured Senior Notes
The following summarizes the unsecured senior notes outstanding as of March 31, 2026 (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | | | | |
| Coupon/Stated Rate | | Effective Rate(1) | | Principal Amount | | Maturity Date(2) |
| 10 Year Unsecured Senior Notes | 2.750 | % | | 3.495 | % | | $ | 1,000,000 | | | October 1, 2026 |
| 5 Year Unsecured Senior Notes | 6.750 | % | | 6.924 | % | | 750,000 | | | December 1, 2027 |
| 10 Year Unsecured Senior Notes | 4.500 | % | | 4.628 | % | | 1,000,000 | | | December 1, 2028 |
| 10 Year Unsecured Senior Notes | 3.400 | % | | 3.505 | % | | 850,000 | | | June 21, 2029 |
| 10.5 Year Unsecured Senior Notes | 2.900 | % | | 2.984 | % | | 700,000 | | | March 15, 2030 |
| 10.75 Year Unsecured Senior Notes | 3.250 | % | | 3.343 | % | | 1,250,000 | | | January 30, 2031 |
| 11 Year Unsecured Senior Notes | 2.550 | % | | 2.671 | % | | 850,000 | | | April 1, 2032 |
| 12 Year Unsecured Senior Notes | 2.450 | % | | 2.524 | % | | 850,000 | | | October 1, 2033 |
| 10.7 Year Unsecured Senior Notes | 6.500 | % | | 6.619 | % | | 750,000 | | | January 15, 2034 |
| 10 Year Unsecured Senior Notes | 5.750 | % | | 5.842 | % | | 850,000 | | | January 15, 2035 |
| Total principal | | | | | 8,850,000 | | | |
| Less: | | | | | | | |
| Net unamortized discount | | | | | 7,786 | | | |
| Deferred financing costs, net | | | | | 33,540 | | | |
| Total | | | | | $ | 8,808,674 | | | |
_______________
(1)Yield on issuance date including the effects of discounts on the notes, settlements of interest rate contracts and the amortization of financing costs.
(2)No principal amounts are due prior to maturity.
On February 2, 2026, BPLP repaid $1.0 billion in aggregate principal amount of its 3.650% senior notes due February 1, 2026, at par. The repayment was completed with available cash.
7. Derivative Instruments and Hedging Activities
BPLP’s agreements with derivative counterparties contain provisions whereby if BPLP defaults on the underlying indebtedness, including defaults where repayment of the indebtedness has not been accelerated by the lender, then BPLP could also be declared in default of the swap derivative obligation. As of March 31, 2026, the Company had not posted any collateral related to the agreements.
Effective Hedge Instruments
BPLP assesses the effectiveness of its derivatives both at inception and on an ongoing basis. If the hedges are deemed to be effective, the fair value is recorded in “Accumulated other comprehensive loss” in the Company’s Consolidated Balance Sheets and is subsequently reclassified into “Interest expense” in the Company’s Consolidated Statements of Operations in the period that the hedged forecasted transactions affect earnings. BPLP’s derivative financial instruments are cash flow hedges that are designated as effective hedges, and they are carried at their estimated fair value on a recurring basis (See Note 2). The Company did not have any undesignated hedges during the three months ended March 31, 2026.
BPLP’s derivative contracts consisted of the following at March 31, 2026 (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Derivative Instrument | | Aggregate Notional Amount | | | | | | Strike Rate Range | | Balance Sheet Location | | |
| | Effective Date | | Maturity Date | | Low | | High | | | Fair Value |
| Interest Rate Swaps | | $ | 600,000 | | | December 15, 2023 | | October 26, 2028 | | 3.790 | % | — | 3.798 | % | | Other liabilities | | $ | (3,843) | |
| Interest Rate Swaps | | 300,000 | | | April 7, 2025 | | April 6, 2026 | | 3.678 | % | — | 3.678 | % | | Other liabilities | | (2) | |
| | $ | 900,000 | | | | | | | | | | | | | $ | (3,845) | |
The following table presents the location in the financial statements of the gains or (losses) recognized as a result of the Company’s cash flow hedges for the three months ended March 31, 2026 and 2025 (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | | | Three months ended March 31, |
| | | | | | 2026 | | 2025 | | |
Amount of gain (loss) related to the effective portion recognized in other comprehensive income (loss) (1) | | | | | | $ | 6,073 | | | $ | (13,276) | | | |
Amount of gain (loss) related to the effective portion subsequently reclassified to earnings (2) | | | | | | $ | 1,676 | | | $ | 3,081 | | | |
| Amount of gain (loss) related to the ineffective portion and amount excluded from effectiveness testing | | | | | | $ | — | | | $ | — | | | |
_______________
(1)Includes the Company’s share of gain (loss) related to the effective portion of derivatives outstanding at its unconsolidated joint venture properties.
(2)Includes amounts from previous interest rate programs.
BPLP has formally documented all of its relationships between hedge instruments and hedging items, as well as its risk-management objectives and strategy for undertaking various hedge transactions. While management believes its judgments are reasonable, a change in a derivative's effectiveness as a hedge could materially affect expenses, net income and equity.
8. Commitments and Contingencies
General
In the normal course of business, the Company guarantees its performance of services or indemnifies third parties against its negligence. In addition, in the normal course of business, the Company guarantees to certain tenants the obligations of the Company’s subsidiaries to complete construction of the building, to pay tenant improvement allowances and brokerage commissions in connection with their leases and limited costs arising from delays in delivery of their premises.
The Company had letters of credit and performance obligations related to lender and development requirements that totaled approximately $32.5 million at March 31, 2026.
Certain of the Company’s joint venture agreements include provisions whereby, at certain specified times, each partner has the right to initiate a purchase or sale of its interest in the joint venture. From time to time, under certain of the Company’s joint venture agreements, if certain return thresholds are achieved, one or more partners could be entitled to an additional promoted interest or payments.
From time to time, the Company (or ventures in which the Company has an ownership interest) has agreed, and may in the future agree, to (1) guarantee portions of the principal, interest and other amounts in connection with their borrowings, (2) provide customary environmental indemnifications and nonrecourse carve-outs (e.g., guarantees against fraud, misrepresentation and bankruptcy) in connection with their borrowings and (3) provide guarantees to lenders, tenants and other third parties for the completion of development projects. The Company has agreements with its third-party joint venture partners whereby the partners agree to reimburse the joint venture for their share of any payments made under the guarantee. In some cases, the Company earns a fee from the applicable joint venture for providing the guarantee.
The Company has two mezzanine loan receivables with maximum commitments of $20.0 million and $50.0 million. As of March 31, 2026, the Company has funded approximately $10.2 million and $21.5 million, respectively, under the mezzanine loans.
Legal Matters
The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. These matters are generally covered by insurance. Management believes that the final outcome of such matters will not have a material adverse effect on the financial position, results of operations or liquidity of the Company.
In addition, the Company is subject to the following legal proceedings:
Property Acquisition in New York City
In connection with the acquisition of an office property in New York City in 2010, the Company entered into an agreement with the seller pursuant to which the seller could earn various fees (i.e., Fixed, Additional and Final Fees) based on the future leasing performance of the property. The Company initially accrued approximately $1.5 million as an estimate of the fees it would owe the seller. In 2020, the seller filed suit against the Company in the Supreme Court of the State of New York, County of New York, claiming that consideration significantly in excess of the initial reserve amount is owed under the agreement. The disagreement between the Company and the seller involves material issues of contract interpretation and, more importantly, the method of calculating fees, including various inputs (both facts and assumptions) that drive the calculations.
On January 25, 2024, the New York Supreme Court granted in part the seller’s motion for summary judgment finding that the Company owes the seller an “Additional Fee” and a “Final Fee” under the terms of the parties’ purchase agreement. The court issued a follow-on order on February 8, 2024, confirming its earlier order that the seller is entitled to the fees described in the parties’ agreement. Other than the “Fixed Fee,” which the Company agreed to pay and for which it had established a reserve of approximately $2.2 million (including interest), the amount of the fees (if any) that are due to the seller has not been determined. On December 9, 2024, the court issued a judgment awarding the seller the Fixed Fee (including interest) of approximately $2.7 million and the Company paid this fee following the judgment. For the Additional Fee and Final Fee, the seller submitted a request for the appointment of a Special Referee on January 7, 2025.
On February 18, 2025, a Special Referee was appointed to determine damages for the Additional and Final Fee. The parties held a five-day hearing with the Special Referee during July and August 2025 before filing opening and post-trial briefs in September and October 2025. The Special Referee held an additional hearing in December 2025.
Separately, the Company filed a notice of appeal on January 15, 2025 to preserve the Company’s ability to appeal the grant of summary judgment on the question of whether the Company is liable for payment of the Additional Fee and Final Fee. The First Department granted the Company’s request extending the time to perfect the appeal to September 2026.
The Company disputes the seller’s calculations and intends to continue defending itself vigorously. However, there can be no assurance that the Company will prevail in the lawsuit. If the court ultimately agrees with the seller’s calculations, then amounts due to the seller could theoretically be as high as the additional $25 million claimed in the seller’s revised complaint, plus interest. Although the Company disputes those calculations, there can be no assurance that the Company’s ultimate liability will not be material.
Brammer Bio MA, LLC
On April 26, 2024, Brammer Bio MA, LLC (“Brammer”), a subsidiary of Thermo Fisher Scientific Inc. and an abutter to the Company’s 290 Binney Street development project located in Cambridge, Massachusetts, filed a complaint in Superior Court in Suffolk County, Massachusetts against the Company relating to certain ongoing construction activities.
In the first quarter of 2023, the Company commenced development of 290 Binney Street, an approximately 573,000 net rentable square foot laboratory/life sciences property that is 100% pre-leased to AstraZeneca Pharmaceuticals (“AstraZeneca”). The Company has a 55% interest in the joint venture that owns 290 Binney Street. Brammer subleases the premises at 250 Binney Street, the Company’s approximately 67,000 net rentable square foot life sciences property that is adjacent to 290 Binney Street.
Brammer alleged that, as a result of the Company’s construction of 290 Binney Street, it is threatened with irreparable harm due to intrusion onto the 250 Binney Street premises and the loss of its property rights. Brammer also alleged that the 290 Binney Street development project has caused and is causing major disruption to its manufacturing operations, and that it has suffered and will continue to suffer damages in the form of losses to its clients and customers. Brammer brought the action for quiet title, breach of contract, trespass and nuisance, and it is seeking declaratory and injunctive relief and specific performance purportedly to protect its property interests in the premises located at 250 Binney Street.
On May 16, 2024, Brammer’s motion for a preliminary injunction was denied by the trial court. Brammer subsequently appealed that decision, electing pursuant to Massachusetts civil procedure rules to petition for appeals to both a single justice of the Massachusetts Appeals Court and to a full appellate panel. On July 16, 2024, the single justice assigned to the appeal issued an order declining to rule on the substance of the appeal petition, deferring instead to the full appellate panel. On August 12, 2025, the clerk of the Massachusetts Appeals Court
completed the procedural steps that were necessary in order for Brammer’s appeal to be heard before the full appellate panel. The parties have completed the briefing process, and the anticipated hearing date is likely to take place sometime in the second quarter of 2026. The remainder of the case continues to proceed in the trial court on the standard litigation timeline.
The Company believes it has meritorious defenses against Brammer’s claims and intends to defend against them vigorously. However, there can be no assurance the Company will prevail in the litigation. If the Company is enjoined from further construction activities, it could suffer delays in construction that could result in its failure to deliver a completed building on the schedule contemplated by the Company’s lease with AstraZeneca or at all, and this could result in owing financial penalties to AstraZeneca and other third parties. Although the Company is unable to estimate a range of loss for all related matters for which losses are reasonably possible, if the court grants injunctive relief or awards monetary damages to Brammer, it could have a material adverse effect on the Company’s results of operations and financial condition.
New York Police Department Paid Detail Program
The Company is a named defendant in an alleged collective and class action wage and hour lawsuit filed on behalf of certain individuals who provided off-duty, uniformed security services at the Company’s buildings in New York City pursuant to the New York Police Department’s Paid Detail Program. In addition to the Company, the plaintiffs also named as defendants more than ninety (90) other companies. The plaintiffs filed the lawsuit in the United States District Court for the Southern District of New York on January 23, 2025, and brought the claims under the Fair Labor Standards Act, the New York Labor Law and the Freelance Isn’t Free Act. The plaintiffs subsequently filed a first amended complaint and a second amended complaint on February 13, 2025 and February 24, 2025, respectively. On December 15, 2025, the plaintiffs filed a motion for leave to file a Third Amended Complaint, which sought to add approximately eighty-five (85) new defendants to the lawsuit. By court order on February 6, 2026, the court directed the plaintiffs to file the Third Amended Complaint by March 11, 2026 as the operative pleading. The plaintiffs filed the Third Amended Complaint on or about March 11, 2026 and proceeded to serve the Third Amended Complaint on the new defendants to be added to the lawsuit by the court-ordered deadline of April 10, 2026. Consistent with the prior complaints, the Third Amended Complaint alleges that the plaintiffs were not paid certain wages owed to them or were not paid in a timely manner and that the plaintiffs did not receive certain wage payment notices required by law. Pursuant to the current schedule under the court’s February 6, 2026 order, the defendants must answer, move or otherwise respond to the Third Amended Complaint by July 9, 2026. If motions are made in lieu of an answer, the briefing period will run through January 6, 2027. The Company has not yet filed a responsive pleading and discovery has not yet commenced. As a result, the Company is unable to estimate a range of loss for which losses are reasonably possible. Although the Company believes it has meritorious defenses to the claims and intends to defend against them vigorously, there can be no assurance that the Company will prevail in the lawsuit.
9. Noncontrolling Interests
Noncontrolling interests relate to the interests in BPLP not owned by BXP and interests in consolidated property partnerships not wholly-owned by the Company. As of March 31, 2026, the noncontrolling interests in BPLP consisted of the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OP Units | | LTIP Units (1) | | 2024 MYLTIP Units | | 2025 MYLTIP Units | | 2026 MYLTIP Units | | 2025 OPP Units |
| 15,675,504 | | 3,111,708 | | 330,479 | | 354,940 | | 458,393 | | 711,864 |
__________(1)Includes 792,017 LTIP Units earned by employees under the Company’s multi-year long-term incentive awards granted between 2012 and 2023 (i.e., 2012 OPP and 2013 - 2023 MYLTIP awards).
Noncontrolling Interest—Common Units
During the three months ended March 31, 2026, 49,365 OP Units were presented by the holders for redemption (including an aggregate of 12,349 OP Units issued upon conversion of LTIP Units, 2012 OPP Units and MYLTIP Units) and were redeemed by BXP in exchange for an equal number of shares of Common Stock.
At March 31, 2026, BPLP had outstanding the 2024 - 2026 MYLTIP Units and the 2025 OPP Units. Prior to the end of the respective performance period for each plan, holders of LTIP Units issued pursuant to these awards are entitled to receive per unit distributions equal to one-tenth (10%) of the regular quarterly distributions payable on an LTIP Unit, but will not be entitled to receive any special distributions. After the performance period for each plan has ended, (1) the number of LTIP Units, both vested and unvested, that the MYLTIP Unit or 2025 OPP Unit
recipients, as applicable, have earned, if any, based on the establishment of a performance pool, will be entitled to receive distributions in an amount per unit equal to distributions, both regular and special, payable on an LTIP Unit and (2) the Company will make a “catch-up” payment on the LTIP Units that are ultimately earned, if any, in an amount equal to the regular and special dividends, if any, declared during the respective performance period on a number of shares of Common Stock equal to the number of 2024 - 2026 MYLTIP Units or 2025 OPP Units that are earned, less the distributions actually paid during the performance period of each respective award, which (a) for the earned 2024 - 2026 MYLTIP Units will be payable in the form of cash and (b) for the earned 2025 OPP Units will be in the form of additional earned 2025 OPP Units, provided that if the total number of earned 2025 OPP Units would exceed the total number of 2025 OPP Units granted, then such excess shall be paid in cash.
The following table shows the results for the 2023 MYLTIP awards (after giving effect to employee separation) at the end of its respective three-year measurement period (Aggregate value is shown in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Measurement Date | | Final Payout as a % of Target | | Aggregate Value | | Forfeited Units |
| 2023 MYLTIP Awards | | February 6, 2026 | | 95 | % | | $ | 9.9 | | | 168,717 | |
The following table presents BPLP’s distributions on the OP Units, LTIP Units, MYLTIP Units and 2025 OPP Units paid or declared in 2026 and during the three months ended March 31, 2025:
| | | | | | | | | | | | | | | | | | | | |
| Record Date | | Payment Date | | Distributions per OP Unit and LTIP Unit | | Distributions per MYLTIP Unit and 2025 OPP Units |
| March 31, 2026 | | April 30, 2026 | | $0.70 | | | $0.070 | |
| December 31, 2025 | | January 29, 2026 | | $0.70 | | | $0.070 | |
| | | | | | |
| | | | | | |
| March 31, 2025 | | April 30, 2025 | | $0.98 | | | $0.098 | |
| December 31, 2024 | | January 30, 2025 | | $0.98 | | | $0.098 | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
A holder of an OP Unit may present the OP Unit to BPLP for redemption at any time (subject to covenants agreed upon at the time of issuance of OP Units to particular holders that may restrict such redemption right for a period of time, generally one year from issuance). Upon presentation of an OP Unit for redemption, BPLP must redeem the OP Unit for cash equal to the then value of a share of Common Stock of BXP. BXP may, in its sole discretion, elect to assume and satisfy the redemption obligation by paying either cash or issuing one share of Common Stock. Based on the last reported price of a share of Common Stock on the New York Stock Exchange of $51.90 per share on March 31, 2026, the value of the OP Units (other than OP Units owned by BXP), and LTIP Units (including the 2012 OPP Units and 2013 - 2023 MYLTIP Units), assuming in each case that all conditions had been met for the conversion thereof, had all of such units been redeemed at March 31, 2026 was approximately $1.0 billion.
Noncontrolling Interests—Property Partnerships
The noncontrolling interests in property partnerships consist of the outside equity interests in ventures that are consolidated with the financial results of the Company because the Company exercises control over the entities that own the properties. The equity interests in these ventures that are not owned by the Company, totaling approximately $2.0 billion at March 31, 2026 and December 31, 2025, are included in Noncontrolling Interests—Property Partnerships on the accompanying Consolidated Balance Sheets.
10. Stockholders’ Equity / Partners’ Capital
As of March 31, 2026, BXP had 158,675,963 shares of Common Stock outstanding.
As of March 31, 2026, BXP owned 1,774,632 general partnership units and 156,901,331 limited partnership units in BPLP.
On March 6, 2026, BXP renewed and increased the size of its “at the market” (“ATM”) stock offering program. Pursuant to the ATM program, BXP may sell from time to time up to an aggregate of $1.0 billion of its Common Stock through sales agents over a three-year period. Under the ATM stock offering program, BXP may also engage in forward sale transactions with affiliates of certain sales agents for the sale of its Common Stock on a forward basis. This program replaced BXP’s prior $600.0 million ATM stock offering program that was scheduled to expire on May 17, 2026. BXP intends to use the net proceeds from any offering for general business purposes, which may
include investment opportunities and debt reduction. No shares of Common Stock have been issued under this ATM stock offering program.
During the three months ended March 31, 2026, BXP issued 49,365 shares of Common Stock in connection with the redemption of an equal number of redeemable OP Units from limited partners.
The following table presents BXP’s dividends per share and BPLP’s distributions per OP Unit and LTIP Unit paid or declared in 2026 and during the three months ended March 31, 2025:
| | | | | | | | | | | | | | | | | | | | |
| Record Date | | Payment Date | | Dividend (Per Share) | | Distribution (Per Unit) |
| March 31, 2026 | | April 30, 2026 | | $0.70 | | | $0.70 | |
| December 31, 2025 | | January 29, 2026 | | $0.70 | | | $0.70 | |
| | | | | | |
| | | | | | |
| March 31, 2025 | | April 30, 2025 | | $0.98 | | | $0.98 | |
| December 31, 2024 | | January 30, 2025 | | $0.98 | | | $0.98 | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
11. Segment Information
Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Makers (“CODMs”). The CODMs decide how resources should be allocated and assesses performance on a recurring basis, at least quarterly. The Company’s CODMs are its Chief Executive Officer and President. The CODMs review operating performance and financial reports by geographic area and property type. In addition, given the size of the Company’s joint venture portfolio, the CODMs utilize the Company’s share of net operating income (“NOI”), which includes the Company’s share of NOI from consolidated and unconsolidated joint ventures, as its profit or loss measure in assessing each segment’s performance and deciding how to allocate resources.
The Company’s share of NOI is used by the CODMs to evaluate the profitability and performance of each geographic area on a consistent and comparable basis, supporting decisions on capital resource allocation, including in connection with development, redevelopment, acquisition and disposition activities in each segment. Additionally, the Company believes its share of NOI is useful as a profit or loss measure and believes it provides useful information regarding its results of operations and financial condition because, when compared across periods, it reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership.
Asset information by segment is not reported because the Company and the CODMs are not provided with the segment asset information and therefore do not use this measure to assess performance or allocate resources. Asset values for the Company’s properties are reported in the Consolidated Balance Sheets at historical cost, which may not reflect current market values. Therefore, depreciation and amortization expense is not allocated among segments. The following are not included in the Company’s share of NOI as they are not necessarily linked to the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level: development and management services revenue, direct reimbursements of payroll and related costs from management services contracts, income (loss) from unconsolidated joint ventures, gains on sales of real estate, interest and other income (loss), unrealized gain (loss) on non-real estate investments, corporate general and administrative expense, payroll and related costs from management services contracts, transaction costs, depreciation and amortization expense, loss on sales-type lease, losses from investments in securities, loss from early extinguishment of debt, interest expense and net income attributable to noncontrolling interests. The Company’s share of NOI presented may not be comparable to what is reported by other REITs or real estate companies that define NOI differently.
The Company’s segments by geographic area are Boston, Los Angeles, New York, San Francisco, Seattle and Washington, DC. The Company also presents information for each segment by property type, including Office (which includes office, life sciences and retail), Residential and Hotel. The Company shows the different property types as the revenue from each type is derived from non-comparable lease structures.
The following tables present reconciliations of the Company’s share of NOI to Net Income Attributable to BXP, Inc. and Net Income Attributable to Boston Properties Limited Partnership for the three months ended March 31, 2026 and 2025.
BXP
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended March 31, | | |
| | 2026 | | 2025 | | | | | | |
| | (in thousands) |
| Company’s share of NOI | | $ | 476,667 | | | $ | 494,778 | | | | | | | |
Add: | | | | | | | | | | |
| Development and management services revenue | | 9,207 | | | 9,775 | | | | | | | |
Direct reimbursements of payroll and related costs from management services contracts | | 4,870 | | | 4,499 | | | | | | | |
| Income (loss) from unconsolidated joint ventures | | 35,413 | | | (2,139) | | | | | | | |
| Gains on sales of real estate | | 13,402 | | | — | | | | | | | |
| Interest and other income (loss) | | 8,885 | | | 7,750 | | | | | | | |
| Unrealized gain (loss) on non-real estate investments | | 188 | | | (483) | | | | | | | |
Net operating income attributable to noncontrolling interests in property partnerships | | 51,710 | | | 49,702 | | | | | | | |
| Less: | | | | | | | | | | |
| General and administrative expense | | 59,341 | | | 52,284 | | | | | | | |
Payroll and related costs from management services contracts | | 4,870 | | | 4,499 | | | | | | | |
| Transaction costs | | 129 | | | 768 | | | | | | | |
| Depreciation and amortization expense | | 227,967 | | | 220,107 | | | | | | | |
| Loss on sales-type lease | | — | | | 2,490 | | | | | | | |
| Net operating income from unconsolidated joint ventures | | 22,370 | | | 32,682 | | | | | | | |
| Losses from investments in securities | | 566 | | | 365 | | | | | | | |
| Loss from early extinguishment of debt | | — | | | 338 | | | | | | | |
| Interest expense | | 152,093 | | | 163,444 | | | | | | | |
| Net income | | 133,006 | | | 86,905 | | | | | | | |
| Less: | | | | | | | | | | |
| Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | | | | | |
Noncontrolling interest—common units of the Operating Partnership | | 11,561 | | | 6,979 | | | | | | | |
| Net income attributable to BXP, Inc. | | $ | 101,576 | | | $ | 61,177 | | | | | | | |
BPLP
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended March 31, | | |
| | | 2026 | | 2025 | | | | | | |
| | (in thousands) |
| Company’s share of NOI | | $ | 476,667 | | | $ | 494,778 | | | | | | | |
Add: | | | | | | | | | | |
| Development and management services revenue | | 9,207 | | | 9,775 | | | | | | | |
Direct reimbursements of payroll and related costs from management services contracts | | 4,870 | | | 4,499 | | | | | | | |
| Income (loss) from unconsolidated joint ventures | | 35,413 | | | (2,139) | | | | | | | |
| Gains on sales of real estate | | 13,402 | | | — | | | | | | | |
| Interest and other income (loss) | | 8,885 | | | 7,750 | | | | | | | |
| Unrealized gain (loss) on non-real estate investments | | 188 | | | (483) | | | | | | | |
Net operating income attributable to noncontrolling interests in property partnerships | | 51,710 | | | 49,702 | | | | | | | |
Less: | | | | | | | | | | |
| General and administrative expense | | 59,341 | | | 52,284 | | | | | | | |
Payroll and related costs from management services contracts | | 4,870 | | | 4,499 | | | | | | | |
| Transaction costs | | 129 | | | 768 | | | | | | | |
| Depreciation and amortization expense | | 226,305 | | | 218,404 | | | | | | | |
| Loss on sales-type lease | | — | | | 2,490 | | | | | | | |
| Net operating income from unconsolidated joint ventures | | 22,370 | | | 32,682 | | | | | | | |
| Losses from investments in securities | | 566 | | | 365 | | | | | | | |
| Loss from early extinguishment of debt | | — | | | 338 | | | | | | | |
| Interest expense | | 152,093 | | | 163,444 | | | | | | | |
| Net income | | 134,668 | | | 88,608 | | | | | | | |
| Less: | | | | | | | | | | |
| Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | | | | | |
| Net income attributable to Boston Properties Limited Partnership | | $ | 114,799 | | | $ | 69,859 | | | | | | | |
The following table presents a reconciliation of Revenue from the Consolidated Financial Statements to Rental Revenue for the three months ended March 31, 2026 and 2025.
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended March 31, | | |
| | 2026 | | 2025 | | | | | | |
| | (in thousands) |
| Revenue | | $ | 872,148 | | | $ | 865,215 | | | | | | | |
| Less: | | | | | | | | | | |
| Development and management services | | 9,207 | | | 9,775 | | | | | | | |
| Direct reimbursements of payroll and related costs from management services contracts | | 4,870 | | | 4,499 | | | | | | | |
| Total rental revenue | | $ | 858,071 | | | $ | 850,941 | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
The following tables present the Company’s share of NOI for each geographic segment by property type, including Office (which includes office, life sciences and retail), Residential and Hotel for the three months ended March 31, 2026 and 2025 (dollars in thousands).
For the three months ended March 31, 2026:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Boston | | Los Angeles | | New York | | San Francisco | | Seattle | | Washington, DC | | Total |
| Rental Revenue: | | | | | | | | | | | | | |
| Office | $ | 301,636 | | | $ | 16,532 | | | $ | 267,837 | | | $ | 127,067 | | | $ | 11,020 | | | $ | 120,426 | | | $ | 844,518 | |
| Residential | 872 | | | — | | | — | | | 3,580 | | | — | | | — | | | 4,452 | |
| Hotel | 9,101 | | | — | | | — | | | — | | | — | | | — | | | 9,101 | |
| Total | 311,609 | | | 16,532 | | | 267,837 | | | 130,647 | | | 11,020 | | | 120,426 | | | 858,071 | |
| % of Grand Totals | 36.32 | % | | 1.93 | % | | 31.21 | % | | 15.23 | % | | 1.28 | % | | 14.03 | % | | 100.00 | % |
| Rental Expenses: | | | | | | | | | | | | | |
| Office | 123,747 | | | 6,414 | | | 118,460 | | | 49,243 | | | 3,368 | | | 40,640 | | | 341,872 | |
| Residential | 655 | | | — | | | — | | | 1,555 | | | — | | | — | | | 2,210 | |
| Hotel | 7,982 | | | — | | | — | | | — | | | — | | | — | | | 7,982 | |
| Total | 132,384 | | | 6,414 | | | 118,460 | | | 50,798 | | | 3,368 | | | 40,640 | | | 352,064 | |
| % of Grand Totals | 37.60 | % | | 1.82 | % | | 33.65 | % | | 14.43 | % | | 0.96 | % | | 11.54 | % | | 100.00 | % |
| Net operating income | $ | 179,225 | | | $ | 10,118 | | | $ | 149,377 | | | $ | 79,849 | | | $ | 7,652 | | | $ | 79,786 | | | $ | 506,007 | |
| % of Grand Totals | 35.42 | % | | 2.00 | % | | 29.52 | % | | 15.78 | % | | 1.51 | % | | 15.77 | % | | 100.00 | % |
| Less: Net operating income attributable to noncontrolling interests in property partnerships | (16,055) | | | — | | | (35,655) | | | — | | | — | | | — | | | (51,710) | |
| Add: Company’s share of net operating income (loss) from unconsolidated joint ventures | 8,762 | | | 6,803 | | | 788 | | | (529) | | | 1,834 | | | 4,712 | | | 22,370 | |
| Company’s share of net operating income | $ | 171,932 | | | $ | 16,921 | | | $ | 114,510 | | | $ | 79,320 | | | $ | 9,486 | | | $ | 84,498 | | | $ | 476,667 | |
| % of Grand Totals | 36.07 | % | | 3.55 | % | | 24.02 | % | | 16.64 | % | | 1.99 | % | | 17.73 | % | | 100.00 | % |
For the three months ended March 31, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Boston | | Los Angeles | | New York | | San Francisco | | Seattle | | Washington, DC | | Total |
| Rental Revenue: | | | | | | | | | | | | | |
| Office | $ | 305,289 | | | $ | 17,165 | | | $ | 263,425 | | | $ | 125,808 | | | $ | 11,991 | | | $ | 105,318 | | | $ | 828,996 | |
| Residential | 4,129 | | | — | | | — | | | 3,503 | | | — | | | 4,716 | | | 12,348 | |
| Hotel | 9,597 | | | — | | | — | | | — | | | — | | | — | | | 9,597 | |
| Total | 319,015 | | | 17,165 | | | 263,425 | | | 129,311 | | | 11,991 | | | 110,034 | | | 850,941 | |
| % of Grand Totals | 37.48 | % | | 2.02 | % | | 30.96 | % | | 15.20 | % | | 1.41 | % | | 12.93 | % | | 100.00 | % |
| Rental Expenses: | | | | | | | | | | | | | |
| Office | 116,885 | | | 6,496 | | | 109,961 | | | 48,552 | | | 2,996 | | | 40,791 | | | 325,681 | |
| Residential | 1,808 | | | — | | | — | | | 2,140 | | | — | | | 1,949 | | | 5,897 | |
| Hotel | 7,565 | | | — | | | — | | | — | | | — | | | — | | | 7,565 | |
| Total | 126,258 | | | 6,496 | | | 109,961 | | | 50,692 | | | 2,996 | | | 42,740 | | | 339,143 | |
| % of Grand Totals | 37.23 | % | | 1.92 | % | | 32.42 | % | | 14.95 | % | | 0.88 | % | | 12.60 | % | | 100.00 | % |
| Net operating income | $ | 192,757 | | | $ | 10,669 | | | $ | 153,464 | | | $ | 78,619 | | | $ | 8,995 | | | $ | 67,294 | | | $ | 511,798 | |
| % of Grand Totals | 37.66 | % | | 2.08 | % | | 29.99 | % | | 15.36 | % | | 1.76 | % | | 13.15 | % | | 100.00 | % |
| Less: Net operating income attributable to noncontrolling interests in property partnerships | (15,301) | | | — | | | (34,401) | | | — | | | — | | | — | | | (49,702) | |
| Add: Company’s share of net operating income from unconsolidated joint ventures | 8,451 | | | 7,352 | | | 3,513 | | | 4,581 | | | 2,257 | | | 6,528 | | | 32,682 | |
| Company’s share of net operating income | $ | 185,907 | | | $ | 18,021 | | | $ | 122,576 | | | $ | 83,200 | | | $ | 11,252 | | | $ | 73,822 | | | $ | 494,778 | |
| % of Grand Totals | 37.58 | % | | 3.64 | % | | 24.77 | % | | 16.82 | % | | 2.27 | % | | 14.92 | % | | 100.00 | % |
12. Earnings Per Share / Common Unit
The following table provides a reconciliation of both the net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership and the number of common shares / units used in the computation of basic earnings per share (“EPS”), which is calculated by dividing net income attributable to BXP, Inc. or net income attributable to Boston Properties Limited Partnership by the weighted-average number of common shares / units outstanding during the period.
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are also participating securities. As such, unvested restricted common stock of BXP and BPLP’s LTIP Units, 2012 OPP Units and MYLTIP Units are considered participating securities. Participating securities are included in the computation of basic EPS using the two-class method. Participating securities are included in the computation of diluted EPS using the if-converted method if the impact is dilutive. Because the 2012 OPP Units and 2013 - 2023 MYLTIP Units required, and the 2024 - 2026 MYLTIP Units and 2025 OPP Units require, the Company to outperform certain performance thresholds, unless such thresholds have been met by the end of the applicable reporting period, the Company excludes such units from the diluted EPS calculation. Other potentially dilutive common shares, including restricted common stock and other securities of BPLP that are exchangeable for BXP’s Common Stock, and the related impact on earnings, are considered when calculating diluted EPS.
The following tables calculate BXP and BPLP’s earnings per share / unit for the three months ended March 31, 2026 and 2025.
BXP
| | | | | | | | | | | | | |
| Three months ended March 31, |
| 2026 | | 2025 | | |
| Computation of Basic and Diluted Earnings Per Share: | (amounts presented in thousands, except per share data) |
| Net income attributable to BXP, Inc. | $ | 101,576 | | | $ | 61,177 | | | |
Allocation of undistributed earnings to participating securities | — | | | — | | | |
| Net income attributable to BXP, Inc. - basic | 101,576 | | | 61,177 | | | |
| Effect of Dilutive Securities: | | | | | |
Stock Based Compensation | — | | | — | | | |
| Net income attributable to BXP, Inc. - diluted | $ | 101,576 | | | $ | 61,177 | | | |
| | | | | |
| Weighted average common shares outstanding | 158,555 | | | 158,202 | | | |
Allocation of undistributed earnings to participating securities | — | | | — | | | |
| Weighted average common shares outstanding - basic | 158,555 | | | 158,202 | | | |
| Effect of Dilutive Securities: | | | | | |
Stock Based Compensation (1) | 501 | | | 430 | | | |
| Weighted average common shares outstanding - diluted | 159,056 | | | 158,632 | | | |
| | | | | |
| Net income attributable to BXP, Inc. - basic earnings per share | $ | 0.64 | | | $ | 0.39 | | | |
| Net income attributable to BXP, Inc. - diluted earnings per share | $ | 0.64 | | | $ | 0.39 | | | |
| | | | | |
_______________
(1)During the three months ended March 31, 2026 and 2025, there were approximately 1,117,298 and 665,381 unvested performance-based restricted common stock and LTIP Units, respectively, that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.
BPLP
| | | | | | | | | | | | | |
| Three months ended March 31, |
| 2026 | | 2025 | | |
| Computation of Basic and Diluted Earnings Per Unit: | (amounts presented in thousands, except per unit data) |
| Net income attributable to Boston Properties Limited Partnership | $ | 114,799 | | | $ | 69,859 | | | |
Allocation of undistributed earnings to participating securities | — | | | — | | | |
| Net income attributable to Boston Properties Limited Partnership - basic | 114,799 | | | 69,859 | | | |
| Effect of Dilutive Securities: | | | | | |
Stock Based Compensation | — | | | — | | | |
| Net income attributable to Boston Properties Limited Partnership - diluted | $ | 114,799 | | | $ | 69,859 | | | |
| | | | | |
| Weighted average common units outstanding | 176,318 | | | 175,752 | | | |
Allocation of undistributed earnings to participating securities | — | | | — | | | |
| Weighted average common units outstanding - basic | 176,318 | | | 175,752 | | | |
| Effect of Dilutive Securities: | | | | | |
Stock Based Compensation (1) | 501 | | | 430 | | | |
| Weighted average common units outstanding - diluted | 176,819 | | | 176,182 | | | |
| | | | | |
| Net income attributable to Boston Properties Limited Partnership basic earnings per unit | $ | 0.65 | | | $ | 0.40 | | | |
| Net income attributable to Boston Properties Limited Partnership diluted earnings per unit | $ | 0.65 | | | $ | 0.40 | | | |
| | | | | |
| Redeemable common units included in weighted average common units | 17,763 | | | 17,550 | | | |
_______________
(1)During the three months ended March 31, 2026 and 2025, there were approximately 1,117,298 and 665,381 unvested performance-based restricted common stock and LTIP Units, respectively, that were not included in the computation of diluted earnings per unit because to do so would have been antidilutive for the period.
13. Stock Option and Incentive Plan
2026 MYLTIP
On February 3, 2026, BXP’s Compensation Committee approved the 2026 Multi-Year Long-Term Incentive Program (the “2026 MYLTIP”) awards under the BXP, Inc. 2021 Stock Incentive Plan (the “2021 Plan”) to certain executive officers of BXP. The 2026 MYLTIP awards consist of three components. Two of the components are each weighted 40% and utilize BXP’s TSR and BXP’s diluted Funds from Operations (“FFO”) per share growth, respectively, over a three-year measurement period as market condition and performance metrics, respectively, and the third component utilizes a leverage ratio as the performance metric. Earned awards will range from zero to a maximum of 458,393 LTIP Units depending on BXP’s performance under the three components, with a target of approximately 229,195 LTIP Units. Under ASC 718 “Compensation – Stock Compensation” (“ASC 718”), the 2026 MYLTIP awards have an aggregate value of approximately $14.6 million.
2023 MYLTIP Measurement Period Results
The following table shows the results for the 2023 MYLTIP awards (after giving effect to employee separations) at the end of its respective three-year measurement period (Aggregate value is shown in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Measurement Date | | Final Payout as a % of Target | | Aggregate Value | | Forfeited Units |
| 2023 MYLTIP Awards | | February 6, 2026 | | 95 | % | | $ | 9.9 | | | 168,717 | |
Issuances (Restricted Stock, LTIP Units and MYLTIP Units)
The following table shows information for restricted common stock issued by BXP, Inc. and LTIP Units and 2026 MYLTIP Units that were issued by BPLP during the three months ended March 31, 2026 (Value is shown in millions):
| | | | | | | | | | | | | | |
| Issuance | | Shares / Units | | Value |
Restricted Common Stock (1) | | 91,942 | | $ | 5.9 | |
LTIP Units (2) (3) | | 431,092 | | | $ | 24.9 | |
2026 MYLTIP Units (2) | | 458,393 | | | $ | 14.6 | |
______________(1)The value is measured at fair value on the date of grant based on the number of shares granted and the closing price of BXP’s Common Stock on the date of grant as quoted on the New York Stock Exchange.
(2)The grantees paid $0.25 per LTIP Unit and 2026 MYLTIP Unit.
(3)When issued, LTIP Units are not economically equivalent in value to a share of Common Stock, but over time can increase in value to one-for-one parity with Common Stock if there is sufficient appreciation in the value of the Company’s assets. The aggregate value of the LTIP Units is included in noncontrolling interests in the Consolidated Balance Sheets of BXP and BPLP. LTIP Units granted were valued using a Monte Carlo simulation method model in accordance with the provisions of ASC 718.
A majority of the grants of restricted common stock and LTIP Units to employees vest in four equal annual installments. Because the 2012 OPP Units, 2025 OPP Units and 2013 - 2026 MYLTIP Units are subject to both a service condition and a market condition, the Company recognizes the related compensation expense under the graded vesting attribution method. Under the graded vesting attribution method, each portion of the award that vests at a different date is accounted for as a separate award and recognized over the period appropriate to that portion so that the compensation cost for each portion should be recognized in full by the time that portion vests. The Company recognizes forfeitures as they occur on its awards of stock-based compensation. Dividends paid on both vested and unvested shares of restricted stock are charged directly to Dividends in Excess of Earnings in BXP, Inc.’s Consolidated Balance Sheets and Partners’ Capital in Boston Properties Limited Partnership’s Consolidated Balance Sheets. Aggregate stock-based compensation expense associated with restricted common stock, LTIP Units, OPP Units and MYLTIP Units was approximately $26.0 million and $23.0 million for the three months ended March 31, 2026 and March 31, 2025, respectively. At March 31, 2026, there was (1) an aggregate of approximately $37.2 million of unrecognized compensation expense related to unvested restricted common stock and LTIP Units and (2) an aggregate of approximately $34.7 million of unrecognized compensation expense related to unvested 2024 - 2026 MYLTIP Units and 2025 OPP Units that is expected to be recognized over a weighted-average period of approximately 3.2 years.
14. Subsequent Events
On April 17, 2026, the Company completed the sale of Kingstowne Retail located in Alexandria, Virginia for a gross sale price of $19.7 million. Kingstowne Retail is a retail property with approximately 88,000 net rentable square feet.
Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report.
This Quarterly Report on Form 10-Q, including the documents incorporated by reference herein, contain forward-looking statements within the meaning of the federal securities laws, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with those safe harbor provisions, in each case, to the extent applicable. The forward-looking statements are contained principally, but not only, under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” We caution investors that forward-looking statements are based on current beliefs, expectations of future events and assumptions made by, and information currently available to, our management. When used, the words “anticipate,” “believe,” “budget,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “should,” “will,” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance or occurrences, which may be affected by known and unknown risks, trends, uncertainties and factors that are, in some cases, beyond our control. If one or more of these known or unknown risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may differ materially from those expressed or implied by the forward-looking statements. We caution you that, while forward-looking statements reflect our good-faith beliefs when we make them, they are not guarantees of future performance or occurrences and are impacted by actual events when they occur after we make such statements. Accordingly, investors should use caution in relying on forward-looking statements, which are based on results, trends and assumptions at the time they are made, to anticipate future results or trends.
Some of the risks and uncertainties that may cause actual results to differ materially from those expressed or implied by the forward-looking statements include the following risks and uncertainties, among others:
•volatile or adverse economic, capital markets and political conditions, including continued inflation, elevated interest rates, supply chain disruptions, policy changes related to tariffs and prolonged government shutdowns or disruptions, which may directly or indirectly impact us, our current clients and our prospective clients, including their demand for office space, and the costs and availability of construction materials and the economic returns on our construction and development activities;
•volatile or adverse geopolitical conflicts and dislocations in the credit markets could adversely affect economic conditions and/or restrict our access to cost-effective capital, which could have a material adverse effect on our business opportunities, results of operations and financial condition;
•risks associated with the availability and terms of financing, the use of debt to fund acquisitions and developments or refinance existing indebtedness, including the impact of higher interest rates on the cost and/or availability of financing and the use of forward interest rate contracts and derivatives and the effectiveness of such arrangements;
•general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on attractive terms, sustained changes in client preferences and space utilization, dependence on clients’ financial condition, and competition from other developers, owners and operators of real estate);
•failure to integrate acquisitions and developments successfully;
•risks and uncertainties affecting property development and construction;
•the ability of our joint venture partners to satisfy their obligations;
•risks associated with actual or threatened terrorist attacks;
•costs of compliance with the Americans with Disabilities Act and other similar laws;
•potential liability for uninsured losses and environmental contamination;
•risks associated with climate change and severe weather events, as well as the regulatory efforts intended to reduce the effects of climate change;
•risks associated with our use of AI and cyber security breaches, incidents and compromises, as well as other significant disruptions of our information technology (IT) networks and related systems, which support our operations and our buildings;
•risks associated with legal proceedings and other claims that could result in substantial monetary damages and other costs;
•risks associated with BXP’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”);
•possible adverse changes in tax and environmental laws;
•the impact of newly adopted accounting principles on our accounting policies and on period-to-period comparisons of financial results;
•risks associated with possible state and local tax audits; and
•risks associated with our dependence on key personnel whose continued service is not guaranteed.
Investors are also urged to carefully review the disclosures we make concerning these risks and other factors
that may affect our business and operating results, including the risks and uncertainties described in (i) our Annual
Report on Form 10-K for the fiscal year ended December 31, 2025 including those described under the caption
“Risk Factors,” (ii) our subsequent filings under the Exchange Act and (iii) the risk factors set forth in this Quarterly Report on Form 10-Q in Part II, Item 1A, if any.
Other sections of this report may include additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all risk factors, nor can we assess the impact of all risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not unduly rely on forward-looking statements as a prediction of actual results. Investors should also refer to our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for future periods and Current Reports on Form 8-K as we file them with the SEC, and to other materials we may furnish to the public from time to time through Current Reports on Form 8-K or otherwise, for a discussion of risks and uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements. We expressly disclaim any responsibility to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events, or otherwise, and you should not rely upon these forward-looking statements after the date of this report.
Overview
BXP is one of the largest publicly traded office REITs (based on total market capitalization as of March 31, 2026) in the United States that develops, owns, and manages primarily premier workplaces. Our properties are concentrated in six gateway markets in the U.S. - Boston, Los Angeles, New York, San Francisco, Seattle and Washington, DC.
We generate revenue and cash primarily by leasing premier workplaces to our clients. We consider premier workplaces to be well-located buildings that are modern structures or have been modernized to compete with newer buildings, are professionally managed and maintained, and offer a number and type of amenities that are in high demand by clients that are focused on the importance of the physical work environment in recruiting and retaining the best and brightest employees. As such, these properties attract creditworthy clients and command upper-tier rental rates in their markets. We do not consider the expression “premier workplaces” a classification of our properties in accordance with any standard listing criteria in the real estate industry. We therefore caution investors that our use and definition of “premier workplaces” may be different than the use and definition of similar expressions and traditional classifications that may be used by other companies.
When making leasing decisions, we consider, among other things, the creditworthiness of the client and the industry in which it conducts business, the length of the lease, the rental rate to be paid at inception and throughout the lease term, the amount of any security deposit or letter of credit posted by the client, the costs of tenant improvement allowances, free rent periods and other landlord concessions, anticipated operating expenses and real estate taxes, the date by which we expect to begin revenue recognition for the lease under GAAP, current and anticipated vacancy in our properties and the market overall (including sublease space), current and expected future demand for the space, the impact of other clients’ expansion rights and general economic factors.
We believe our key competitive advantages are our commitments to the office asset class and to our clients as many competitors have divested from the sector, a strong balance sheet with access to capital in the secured and unsecured debt markets and the private and public equity markets, and the high quality of our portfolio of premier workplaces. Our core strategy has always been to develop, acquire and manage premier workplaces in gateway markets with high barriers-to-entry and attractive demand drivers and to focus on executing long-term leases with financially strong clients that are diverse across market sectors. We believe this strategy provides a competitive advantage as our clients are interested in leasing space in vibrant, amenitized and accessible premier workplaces. This interest has accelerated the flight to quality in the office market. Over the past several years, BXP’s experience and performance has diverged from the larger market and media sentiment, as premier workplaces have outperformed the broader office market consistently and substantially in both rental rates achieved and occupancy. We believe this divergence validates our strategy and differentiates BXP from other office companies.
Premier workplaces in our five traditional central business district (“CBD”) markets (Boston, New York, San Francisco, Seattle and Washington, DC) have consistently outperformed the broader office market in those CBDs on several key metrics, including occupancy, net absorption levels, rental rates and landlord concessions. This outperformance is evident in BXP’s portfolio where we derive approximately 90% of our share of annualized rental obligations from predominantly premier workplaces located in CBDs. We define annualized rental obligations as the monthly contractual base rent (excluding percentage rent and rent abatements) and budgeted reimbursements from clients under existing leases as of March 31, 2026, multiplied by twelve. Our share of annualized rental obligations is calculated as the consolidated amount, plus our share of the amount from our unconsolidated joint ventures (calculated based on our economic percentage ownership interest), less our partners’ share of the amount from our consolidated joint ventures (calculated based on the partners’ economic percentage ownership interest). As of March 31, 2026, our CBD assets were 89.9% occupied and 93.4% leased (including vacant space for which we have signed leases that have not yet commenced in accordance with GAAP).
As of March 31, 2026, the weighted-average remaining lease term for (1) our in-place leases, based on square feet, including those signed by our unconsolidated joint ventures but excluding residential units, was approximately 7.6 years, and (2) our 20 largest clients, based on square feet, was approximately 9.1 years. Through year-end 2027, we have relatively low exposure to contractual lease expirations with approximately 6.3% of our share of the square footage of our in-service portfolio expiring.
During the first quarter of 2026, BXP continued to successfully execute on the multi-year strategic action plan introduced at our September 2025 Investor Day. The action plan focuses on earnings growth, which we expect will be achieved through a combination of increased occupancy and development deliveries, and reducing leverage through asset sales and retention of cash flow. Our progress reflects steady advancement across these key priorities.
Growth in Funds from Operations (“FFO”) per share depends in large part on the success of our leasing activity. Leasing momentum remained strong during the first quarter of 2026, as we signed leases for more than 1.1 million square feet.
Consistent with the strategic asset sales plan outlined at our September 2025 Investor Day, BXP has generated approximately $1.2 billion of aggregate net proceeds from completed asset sales through May 1, 2026, including approximately $358.1 million in 2026, further enhancing balance sheet flexibility and supporting our capital needs and strategic priorities.
During the first quarter, we completed the sales of North First Business Park in San Jose, CA, a land parcel in Rockville, MD, The Lofts at Atlantic Wharf in Boston, MA, and BXP’s ownership interest in each of Gateway Commons in South San Francisco, CA and 7750 Wisconsin Avenue in Bethesda, MD. The aggregate gross sales price of these residential, land and non-strategic office sales totaled approximately $495.7 million, resulting in net proceeds of approximately $339.0 million and gains on sales of real estate and our investment in joint ventures of approximately $54.7 million, in each case based on BXP’s share.
Outlook
Leasing conditions across BXP’s portfolio remain constructive, supported by continued client demand in premier office locations and tangible progress in leasing execution. Leasing activity has been increasingly concentrated in our highest‑quality, well‑located CBD assets, including Midtown Manhattan, the Back Bay of Boston, Reston Town Center, and select submarkets in San Francisco, where tightening availability and improving demand dynamics are translating into meaningful leasing momentum. Demand has also broadened in certain West Coast markets, particularly within South of Market San Francisco and Santa Monica, reflecting renewed interest from expanding and relocating clients.
Looking ahead, leasing for vacant space in our in-service buildings and coverage of near‑term lease expirations are expected to be the primary drivers of occupancy and same‑store revenue growth. We have a manageable level of remaining 2026 expirations, a growing pipeline of active negotiations, and a meaningful volume of executed leases scheduled to commence this year. Together, these factors provide increased visibility into continued occupancy improvement and support our expectation of achieving year‑end 2026 occupancy targets consistent with those outlined at our September 2025 Investor Day.
On the supply side, new office construction has effectively slowed to a halt across most of our markets, which we expect will result in improved long‑term supply‑demand fundamentals and reinforcement of the relative competitiveness of institutional, well‑amenitized assets. Capital markets sentiment toward the office sector has continued to improve, as reflected in increasing private market transaction activity and greater availability of both debt and equity capital at more attractive pricing. This backdrop is expected to support our leasing momentum, facilitate orderly execution of strategic asset sales, and enable continued capital recycling initiatives throughout 2026.
Leasing Activity and Occupancy
Although all of the markets in which we operate still need consistent incremental absorption to constitute a macro recovery, we continue to see pockets of strength where low availability is driving constructive client behavior. As clients choose financially sound premier workplaces with building owners that are committed to their properties for the long term and are operated by the best property management teams, we expect to continue to be successful in gaining market share.
In the first quarter of 2026, we executed 68 leases totaling more than 1.1 million square feet with a weighted-average lease term of approximately 8.7 years.
At March 31, 2026, BXP’s total in-service portfolio occupancy was 87.4%, an increase of 70 basis points from the fourth quarter of 2025. Total portfolio leased percentage was 90.9% (including vacant space for which we have signed leases that have not yet commenced revenue recognition in accordance with GAAP), an increase of 150 basis points from the fourth quarter of 2025. The spread between leased and occupied square footage has grown to 350 basis points, representing approximately 1.6 million square feet of leases yet to commence, of which approximately 91% is expected to commence throughout 2026, consistent with the trajectory outlined at our Investor Day in September 2025.
An overview of the leasing activity in each of our regions for the three months ended March 31, 2026 is set forth in the table below. Amounts shown are in square feet, except for percentages, and include 100% of the unconsolidated joint venture properties.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Leases executed (1) | | | | |
| Region | | Total | | Second generation space vacant < 2 Year (2) | | Change in second generation cash rents, net (3) | | Occupancy | | Leased (4) |
| Boston | | 282,070 | | | 219,261 | | | (2.13) | % | | 92.4 | % | | 94.3 | % |
| Los Angeles | | 17,709 | | | 17,709 | | | (47.58) | % | | 87.2 | % | | 88.5 | % |
| New York | | 353,759 | | | 212,085 | | | (9.49) | % | | 84.4 | % | | 91.1 | % |
| San Francisco | | 181,642 | | | 152,812 | | | 15.43 | % | | 79.7 | % | | 82.9 | % |
| Seattle | | 39,703 | | | 28,798 | | | 2.05 | % | | 80.7 | % | | 82.3 | % |
| Washington, DC | | 274,009 | | | 209,585 | | | (7.63) | % | | 90.6 | % | | 92.7 | % |
| Total / Weighted Average | | 1,148,892 | | | 840,250 | | | (3.18) | % | | 87.4 | % | | 90.9 | % |
| | | | | | | | | | |
1st generation leases (5) | | 194,751 | | | |
2nd generation leases with new clients (2) | | 954,141 | | | |
Leases executed during the period, in square feet (1) | | 1,148,892 | | | |
Second generation leasing information: (2) | | | | |
| Weighted Average Lease Term | | 96 Months | | |
| Weighted Average Free Rent Period | | 187 Days | | |
Total Transaction Costs Per Square Foot (6) | | $114.11 | | | |
| Lease costs per year of term | | $14.26 | | | |
__________________
(1)Represents leases executed during the three months ended March 31, 2026 for which we either (1) commenced lease revenue recognition in such quarter or (2) will commence lease revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development.
(2)Second generation leases are defined as leases for in-service spaces that have previously been leased.
(3)Represents the increase (decrease) in net rent (gross rent less operating expenses) under the new leases versus expired leases on the 840,250 square feet of second generation leases that had been occupied within the 24 months preceding the execution of the new leases; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis. The calculation for the increase (decrease) of gross rent is based on current quarter expenses.
(4)Represents signed leases for which lease revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates.
(5)First generation leases are defined as leases for development and redevelopment space that have not previously been leased.
(6)Total transaction costs include tenant improvements and leasing commissions but exclude free rent concessions and other inducements in accordance with GAAP.
The table below details the vacancy activity in our portfolio, including 100% of the unconsolidated joint ventures, that commenced revenue recognition during the three months ended March 31, 2026:
| | | | | | | | | | |
| | Three months ended March 31, 2026 | | |
| | (Square Feet) |
| Vacant space available at the beginning of the period | | 6,342,127 | | | |
Vacant space from property dispositions/properties taken out of service (1) | | (389,363) | | | |
| | | | |
Vacant space from properties placed (and partially placed) in-service (2) | | 30,284 | | | |
| Leases expiring or terminated during the period | | 2,190,499 | | | |
| Total space available for lease | | 8,173,547 | | | |
1st generation leases (3) | | 120,757 | | | |
2nd generation leases with new clients (4) | | 794,173 | | | |
2nd generation lease renewals (4) | | 1,501,848 | | | |
Total leases commenced during the period (5) | | 2,416,778 | | | |
| Vacant space available for lease at the end of the period | | 5,756,769 | | | |
__________________
(1)Total square feet from property dispositions during the three months ended March 31, 2026 consists of 260,762 square feet at Gateway Commons and 79,382 square feet at North First Business Park. Total square feet from properties taken out of service during the three months ended March 31, 2026 consists of 49,219 square feet at Santa Monica Business Park.
(2)Total square feet from properties placed in service during the three months ended March 31, 2026 consists of 30,284 square feet at Reston Next Retail.
(3)First generation leases are defined as leases for development and redevelopment spaces that have not previously been leased.
(4)Second generation leases are defined as leases for in-service spaces that have previously been leased.
(5)Leases for 302,194 square feet were signed during the three months ended March 31, 2026.
Investment Activity
In 2025, BXP commenced vertical construction on 343 Madison Avenue in New York City, New York. 343 Madison Avenue will be a highly amenitized, sustainably designed, 46-story, 930,000 square foot premier workplace located on one of the most desirable office development sites in Manhattan with direct access to Grand Central Station. BXP is currently in active negotiations for additional leases, that, if executed, are expected to increase pre-leasing at the property to approximately 56%. As of May 1, 2026, the project was 29% pre-leased.
BXP anticipates placing 290 Binney Street, a 573,000 square foot, state-of-the-art life sciences building located in Cambridge, Massachusetts within the Kendall Square submarket, into service in the second quarter of 2026. The property is 100% pre-leased to AstraZeneca.
Critical Accounting Estimates
Management’s Discussion and Analysis of Financial Condition and Results of Operations discuss our Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates and assumptions.
Our Annual Report on Form 10-K for the year ended December 31, 2025 contains a discussion of our critical accounting estimates. There have been no significant changes in our critical accounting estimates since the year ended December 31, 2025.
Results of Operations
At March 31, 2026 and 2025, we owned or had joint venture interests in a portfolio of 164 and 185 commercial real estate properties, respectively (in each case, the “Total Property Portfolio”). As a result of changes within our Total Property Portfolio, the financial data presented below shows significant changes in revenue and expenses from period-to-period. Accordingly, we do not believe that our period-to-period financial data with respect to the Total Property Portfolio provides a complete understanding of our operating results. Therefore, the comparison of operating results for the three months ended March 31, 2026 and 2025 shows separately the changes attributable to the properties that were owned by us and in-service throughout each period compared (the “Same Property Portfolio”) and the changes attributable to the properties included in the Acquired, Placed In-Service, In or Held for Development or Redevelopment or Sold Portfolios.
In our analysis of operating results, particularly to make comparisons of Net Operating Income (“NOI”) between periods more meaningful, it is important to provide information for properties that were in-service and owned by us throughout each period presented. We refer to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by us and in-service through the end of the latest period presented as our Same Property Portfolio. The Same Property Portfolio therefore excludes properties acquired, placed in-service or in or held for development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented.
NOI is a non-GAAP financial measure equal to net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership, as applicable, the most directly comparable GAAP financial measures, plus (1) net income attributable to noncontrolling interests, interest expense, loss from early extinguishment of debt, losses from investments in securities, loss on sales-type lease, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts and corporate general and administrative expense less (2) unrealized gain (loss) on non-real estate investments, interest and other income (loss), gains on sales of real estate, income (loss) from unconsolidated joint ventures, direct reimbursements of payroll and related costs from management services contracts and development and management services revenue. We use NOI internally as a performance measure and believe it provides useful information to investors regarding our results of operations and financial condition because, when compared across periods, it reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. Similarly, interest expense may be incurred at the property level even though the financing proceeds may be used at the corporate level (e.g., used for other investment activity). In addition, depreciation and amortization expense, because of historical cost accounting and useful life estimates, may distort operating performance measures at the property level. NOI presented by us may not be comparable to NOI reported by other REITs or real estate companies that define NOI differently.
We believe that in order to understand our operating results, NOI should be examined in conjunction with net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership as presented in our Consolidated Financial Statements. NOI should not be considered as a substitute for net income attributable to BXP, Inc. or net income attributable to Boston Properties Limited Partnership (determined in accordance with
GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.
Gains on sales of real estate, impairment losses and depreciation expense may differ between BXP and BPLP as a result of previously applied acquisition accounting by BXP for the issuance of common stock in connection with non-sponsor redemptions of common units of limited partnership interest of BPLP (“OP Units”). This accounting resulted in a step-up of the real estate assets at BXP that was allocated to certain properties. The difference between the real estate assets of BXP as compared to BPLP for certain properties having an allocation of the real estate step-up will result in a corresponding difference in gains on sales of real estate, impairment losses and depreciation expense upon the sale of these properties. For additional information see the Explanatory Note that immediately follows the cover page of this Quarterly Report on Form 10-Q.
Results of Operations for the Three Months Ended March 31, 2026 and 2025
Net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership increased approximately $40.4 million and $44.9 million, respectively, for the three months ended March 31, 2026 compared to 2025, as detailed in the following tables and for the reasons discussed below under the heading “Comparison of the three months ended March 31, 2026 to the three months ended March 31, 2025” within “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
The following are reconciliations of (1) Net Income Attributable to BXP, Inc. to NOI and (2) Net Income Attributable to Boston Properties Limited Partnership to NOI for the three months ended March 31, 2026 and 2025. For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see page 41.
BXP
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended March 31, |
| | 2026 | | 2025 | | Increase/
(Decrease) | | %
Change |
| | (in thousands) |
| Net Income Attributable to BXP, Inc. | | $ | 101,576 | | | $ | 61,177 | | | $ | 40,399 | | | 66.04 | % |
| Net Income Attributable to Noncontrolling Interests: | | | | | | | | |
Noncontrolling interest—common units of the Operating Partnership | | 11,561 | | | 6,979 | | | 4,582 | | | 65.65 | % |
Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | 1,120 | | | 5.97 | % |
| Net Income | | 133,006 | | | 86,905 | | | 46,101 | | | 53.05 | % |
Other Expenses: | | | | | | | | |
Add: | | | | | | | | |
| Interest expense | | 152,093 | | | 163,444 | | | (11,351) | | | (6.94) | % |
| Loss from early extinguishment of debt | | — | | | 338 | | | (338) | | | (100.00) | % |
| Losses from investments in securities | | 566 | | | 365 | | | 201 | | | 55.07 | % |
| Loss on sales-type lease | | — | | | 2,490 | | | (2,490) | | | (100.00) | % |
Other Income: | | | | | | | | |
| Less: | | | | | | | | |
| Unrealized gain (loss) on non-real estate investments | | 188 | | | (483) | | | 671 | | | 138.92 | % |
Interest and other income (loss) | | 8,885 | | | 7,750 | | | 1,135 | | | 14.65 | % |
| Gains on sales of real estate | | 13,402 | | | — | | | 13,402 | | | 100.00 | % |
| Income (loss) from unconsolidated joint ventures | | 35,413 | | | (2,139) | | | 37,552 | | | 1,755.59 | % |
| Other Expenses: | | | | | | | | |
Add: | | | | | | | | |
| Depreciation and amortization expense | | 227,967 | | | 220,107 | | | 7,860 | | | 3.57 | % |
Transaction costs | | 129 | | | 768 | | | (639) | | | (83.20) | % |
Payroll and related costs from management services contracts | | 4,870 | | | 4,499 | | | 371 | | | 8.25 | % |
General and administrative expense | | 59,341 | | | 52,284 | | | 7,057 | | | 13.50 | % |
| Other Revenue: | | | | | | | | |
| Less: | | | | | | | | |
Direct reimbursements of payroll and related costs from management services contracts | | 4,870 | | | 4,499 | | | 371 | | | 8.25 | % |
Development and management services revenue | | 9,207 | | | 9,775 | | | (568) | | | (5.81) | % |
| Net Operating Income (“NOI”) | | $ | 506,007 | | | $ | 511,798 | | | $ | (5,791) | | | (1.13) | % |
BPLP
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended March 31, |
| | 2026 | | 2025 | | Increase/
(Decrease) | | %
Change |
| | (in thousands) |
| Net Income Attributable to Boston Properties Limited Partnership | | $ | 114,799 | | | $ | 69,859 | | | $ | 44,940 | | | 64.33 | % |
| Net Income Attributable to Noncontrolling Interests: | | | | | | | | |
Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | 1,120 | | | 5.97 | % |
| Net Income | | 134,668 | | | 88,608 | | | 46,060 | | | 51.98 | % |
Other Expenses: | | | | | | | | |
Add: | | | | | | | | |
Interest expense | | 152,093 | | | 163,444 | | | (11,351) | | | (6.94) | % |
| Loss from early extinguishment of debt | | — | | | 338 | | | (338) | | | (100.00) | % |
| Losses from investments in securities | | 566 | | | 365 | | | 201 | | | 55.07 | % |
| Loss on sales-type lease | | — | | | 2,490 | | | (2,490) | | | (100.00) | % |
Other Income: | | | | | | | | |
Less: | | | | | | | | |
| Unrealized gain (loss) on non-real estate investments | | 188 | | | (483) | | | 671 | | | 138.92 | % |
Interest and other income (loss) | | 8,885 | | | 7,750 | | | 1,135 | | | 14.65 | % |
| Gains on sales of real estate | | 13,402 | | | — | | | 13,402 | | | 100.00 | % |
| Income (loss) from unconsolidated joint ventures | | 35,413 | | | (2,139) | | | 37,552 | | | 1,755.59 | % |
| Other Expenses: | | | | | | | | |
| Add: | | | | | | | | |
| Depreciation and amortization expense | | 226,305 | | | 218,404 | | | 7,901 | | | 3.62 | % |
Transaction costs | | 129 | | | 768 | | | (639) | | | (83.20) | % |
Payroll and related costs from management services contracts | | 4,870 | | | 4,499 | | | 371 | | | 8.25 | % |
General and administrative expense | | 59,341 | | | 52,284 | | | 7,057 | | | 13.50 | % |
| Other Revenue: | | | | | | | | |
| Less: | | | | | | | | |
Direct reimbursements of payroll and related costs from management services contracts | | 4,870 | | | 4,499 | | | 371 | | | 8.25 | % |
Development and management services revenue | | 9,207 | | | 9,775 | | | (568) | | | (5.81) | % |
| Net Operating Income (“NOI”) | | $ | 506,007 | | | $ | 511,798 | | | $ | (5,791) | | | (1.13) | % |
Comparison of the three months ended March 31, 2026 to the three months ended March 31, 2025
The table below shows selected operating information for the Same Property Portfolio and the Total Property Portfolio. The Same Property Portfolio consists of 139 properties totaling approximately 40.8 million net rentable square feet, excluding unconsolidated joint ventures. The Same Property Portfolio includes properties acquired or placed in-service on or prior to January 1, 2025 and owned and in-service through March 31, 2026. The Total Property Portfolio includes the effects of the other properties either acquired, placed in-service, in or held for development or redevelopment after January 1, 2025 or disposed of on or prior to March 31, 2026. This table includes a reconciliation from the Same Property Portfolio to the Total Property Portfolio by also providing information for the three months ended March 31, 2026 and 2025 with respect to the properties that were acquired, placed in-service, in or held for development or redevelopment, or sold. We did not acquire any properties during the three months ended March 31, 2026 and 2025.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Same Property Portfolio | | | | Properties
Placed In-Service
Portfolio | | Properties in or Held for
Development or
Redevelopment
Portfolio | | Properties Sold Portfolio | | Total Property Portfolio |
| 2026 | | 2025 | | Increase/
(Decrease) | | %
Change | | | | | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | Increase/
(Decrease) | | %
Change |
| (dollars in thousands) |
Rental Revenue: (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Lease Revenue (Excluding Termination Income) | $ | 796,523 | | | $ | 784,099 | | | $ | 12,424 | | | 1.58 | % | | | | | | $ | 1,555 | | | $ | 88 | | | $ | 2,899 | | | $ | 8,631 | | | $ | 77 | | | $ | 5,982 | | | $ | 801,054 | | | $ | 798,800 | | | $ | 2,254 | | | 0.28 | % |
Termination Income | 12,828 | | | 246 | | | 12,582 | | | 5,114.63 | % | | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 12,828 | | | 246 | | | 12,582 | | | 5,114.63 | % |
Lease Revenue | 809,351 | | | 784,345 | | | 25,006 | | | 3.19 | % | | | | | | 1,555 | | | 88 | | | 2,899 | | | 8,631 | | | 77 | | | 5,982 | | | 813,882 | | | 799,046 | | | 14,836 | | | 1.86 | % |
| Parking and Other Revenue | 30,498 | | | 29,285 | | | 1,213 | | | 4.14 | % | | | | | | — | | | — | | | 138 | | | 576 | | | — | | | 89 | | | 30,636 | | | 29,950 | | | 686 | | | 2.29 | % |
Total Rental Revenue (1) | 839,849 | | | 813,630 | | | 26,219 | | | 3.22 | % | | | | | | 1,555 | | | 88 | | | 3,037 | | | 9,207 | | | 77 | | | 6,071 | | | 844,518 | | | 828,996 | | | 15,522 | | | 1.87 | % |
| Real Estate Operating Expenses | 335,016 | | | 316,171 | | | 18,845 | | | 5.96 | % | | | | | | 990 | | | 457 | | | 5,806 | | | 5,973 | | | 60 | | | 3,080 | | | 341,872 | | | 325,681 | | | 16,191 | | | 4.97 | % |
| Net Operating Income (Loss), Excluding Residential and Hotel | 504,833 | | | 497,459 | | | 7,374 | | | 1.48 | % | | | | | | 565 | | | (369) | | | (2,769) | | | 3,234 | | | 17 | | | 2,991 | | | 502,646 | | | 503,315 | | | (669) | | | (0.13) | % |
Residential Net Operating Income (2) | 1,922 | | | 1,363 | | | 559 | | | 41.01 | % | | | | | | — | | | — | | | — | | | — | | | 320 | | | 5,088 | | | 2,242 | | | 6,451 | | | (4,209) | | | (65.25) | % |
Hotel Net Operating Income (2) | 1,119 | | | 2,032 | | | (913) | | | (44.93) | % | | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 1,119 | | | 2,032 | | | (913) | | | (44.93) | % |
| Net Operating Income (Loss) | $ | 507,874 | | | $ | 500,854 | | | $ | 7,020 | | | 1.40 | % | | | | | | $ | 565 | | | $ | (369) | | | $ | (2,769) | | | $ | 3,234 | | | $ | 337 | | | $ | 8,079 | | | $ | 506,007 | | | $ | 511,798 | | | $ | (5,791) | | | (1.13) | % |
_______________
(1)Rental Revenue is equal to Revenue less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Revenue per the Consolidated Statements of Operations, excluding the residential and hotel revenue that is noted below. We use Rental Revenue internally as a performance measure and in calculating other non-GAAP financial measures (e.g., NOI), which provide investors with information regarding our performance that is not immediately apparent from the most directly comparable GAAP measures and allows investors to compare operating performance between periods.
(2)For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see page 41. Residential Net Operating Income for the three months ended March 31, 2026 and 2025 is comprised of Residential Revenue of $4,452 and $12,348 less Residential Expenses of $2,210 and $5,897, respectively. Hotel Net Operating Income for the three months ended March 31, 2026 and 2025 is comprised of Hotel Revenue of $9,101 and $9,597 less Hotel Expenses of $7,982 and $7,565, respectively, per the Consolidated Statements of Operations.
Same Property Portfolio
Lease Revenue (Excluding Termination Income)
Lease revenue (excluding termination income) from the Same Property Portfolio increased by approximately $12.4 million for the three months ended March 31, 2026 compared to 2025. The increase resulted from our average revenue per square foot increasing by approximately $0.86, contributing approximately $7.7 million, and our average occupancy increasing from 88.3% to 88.9%, contributing approximately $4.7 million.
Termination Income
Termination income increased by approximately $12.6 million for the three months ended March 31, 2026 compared to 2025.
Termination income for the three months ended March 31, 2026 and 2025 related to seven and two clients, respectively, across the Same Property Portfolio and totaled approximately $12.8 million and $0.2 million, respectively.
Parking and Other Revenue
Parking and other revenue increased by approximately $1.2 million for the three months ended March 31, 2026 compared to 2025. Parking revenue increased by approximately $1.3 million, partially offset by a decrease in other revenue of approximately $0.1 million. The increase in parking revenue was primarily due to an increase in transient parking.
Real Estate Operating Expenses
Real estate operating expenses from the Same Property Portfolio increased by approximately $18.8 million, or 6.0%, for the three months ended March 31, 2026 compared to 2025, primarily due to increases in (1) utilities and roads/grounds/security expenses of approximately $9.7 million, or 14.7%, and (2) real estate operating expenses of approximately $9.1 million, or 3.7%. The increase in utilities and roads/grounds/security expenses was primarily attributable to colder temperatures and increased snow removal during the three months ended March 31, 2026 compared to 2025.
Properties Placed In-Service Portfolio
The table below lists the properties that were placed in-service or partially placed in-service between January 1, 2025 and March 31, 2026.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Initially Placed In-Service | | Quarter Fully Placed In-Service | | | | Rental Revenue | | Real Estate Operating Expenses | | |
| Name | | | | Square Feet | | 2026 | | 2025 | | Change | | 2026 | | 2025 | | Change | | |
| | | | | | | | (dollars in thousands) | | |
| Reston Next Office Phase II | | Third Quarter, 2024 | | Third Quarter, 2025 | | 86,629 | | | $ | 420 | | | $ | 57 | | | $ | 363 | | | $ | 220 | | | $ | 53 | | | $ | 167 | | | |
| Reston Next Retail | | First Quarter, 2025 | | First Quarter, 2026 | | 30,284 | | | — | | | — | | | — | | | 56 | | | 13 | | | 43 | | | |
| 1050 Winter Street | | Second Quarter, 2025 | | Third Quarter, 2025 | | 162,274 | | | 1,135 | | | 31 | | | 1,104 | | | 714 | | | 391 | | | 323 | | | |
| | | | | | 279,187 | | | $ | 1,555 | | | $ | 88 | | | $ | 1,467 | | | $ | 990 | | | $ | 457 | | | $ | 533 | | | |
Properties In or Held for Development or Redevelopment Portfolio
The table below lists the properties that were in or held for development or redevelopment between January 1, 2025 and March 31, 2026.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Date Commenced Held for Development / Redevelopment | | | | Rental Revenue | | Real Estate Operating Expenses | | |
Name (1) | | | Square Feet | | 2026 | | 2025 | | Change | | 2026 | | 2025 | | Change | | |
| | | | | | (dollars in thousands) | | |
| Lexington Office Park | | March 31, 2023 | | 167,000 | | | $ | 299 | | | $ | 211 | | | $ | 88 | | | $ | 682 | | | $ | 569 | | | $ | 113 | | | |
| 1000 & 1100 Winter Street | | December 31, 2025 | | 567,000 | | | 1,365 | | | 3,870 | | | (2,505) | | | 2,469 | | | 2,263 | | | 206 | | | |
| Kingstowne One | | September 30, 2024 | | 154,000 | | | 590 | | | 412 | | | 178 | | | 319 | | | 391 | | | (72) | | | |
Reservoir Place (2) | | March 31, 2025 | | 361,000 | | | 43 | | | 1,875 | | | (1,832) | | | 991 | | | 1,244 | | | (253) | | | |
Santa Monica Business Park (3) | March 31, 2026 | | 260,000 | | | 740 | | | 2,839 | | | (2,099) | | | 1,345 | | | 1,506 | | | (161) | | | |
| | | | 1,509,000 | | | $ | 3,037 | | | $ | 9,207 | | | $ | (6,170) | | | $ | 5,806 | | | $ | 5,973 | | | $ | (167) | | | |
______________(1)These properties are no longer considered “in-service” because each property’s occupied percentage is less than 50% and we anticipate a future development/redevelopment of the property. A property will be considered held for development or redevelopment until the last client has vacated the property and the property is no longer revenue producing.
(2)Reservoir Place is an approximately 526,000 square foot office building, of which approximately 165,000 square feet remains in-service.
(3)This portion of Santa Monica Business Park is comprised of two buildings, 2850 Ocean Park and 2800 28th Street.
Properties Sold Portfolio
The table below lists the properties we sold between January 1, 2025 and March 31, 2026.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Rental Revenue | | Real Estate Operating Expenses |
| Name | | Date Sold | | Square Feet | | 2026 | | 2025 | | Change | | 2026 | | 2025 | | Change |
| | | | | | (dollars in thousands) |
| Land | | | | | | | | | | | | | | | | |
| 17 Hartwell Avenue | | June 27, 2025 | | 30,000 | | | $ | — | | | $ | (4) | | | $ | 4 | | | $ | — | | | $ | 117 | | | $ | (117) | |
| Almaden Boulevard | | October 17, 2025 | | N/A | | — | | | 90 | | | (90) | | | — | | | 124 | | | (124) | |
| Land Parcels at Broad Run | | December 1, 2025 | | N/A | | — | | | — | | | — | | | — | | | 13 | | | (13) | |
| 3625 Peterson Way | | December 11, 2025 | | N/A | | — | | | 614 | | | (614) | | | — | | | 283 | | | (283) | |
| North First Business Park | | January 14, 2026 | | 191,000 | | | 77 | | | 663 | | | (586) | | | 61 | | | 486 | | | (425) | |
| Shady Grove Parcel 1 | February 5, 2026 | | N/A | | — | | | — | | | — | | | (1) | | | 82 | | | (83) | |
| Total Land | | | | 221,000 | | | 77 | | | 1,363 | | | (1,286) | | | 60 | | | 1,105 | | | (1,045) | |
| | | | | | | | | | | | | | | | |
| Residential | | | | | | | | | | | | | | | | |
| Proto Kendall Square | | December 18, 2025 | | 166,700 | | | — | | | 3,005 | | | (3,005) | | | — | | | 1,143 | | | (1,143) | |
| Signature at Reston Town Center | | December 19, 2025 | | 517,800 | | | — | | | 4,716 | | | (4,716) | | | — | | | 1,949 | | | (1,949) | |
| The Lofts at Atlantic Wharf | | February 25, 2026 | | 87,000 | | | 863 | | | 1,124 | | | (261) | | | 543 | | | 665 | | | (122) | |
| Total Residential | | | | 771,500 | | | 863 | | | 8,845 | | | (7,982) | | | 543 | | | 3,757 | | | (3,214) | |
| | | | | | | | | | | | | | | | |
| Non-Strategic Office: | | | | | | | | | | | | | | | | |
| 140 Kendrick Street | | December 17, 2025 | | 409,200 | | | — | | | 4,708 | | | (4,708) | | | — | | | 1,975 | | | (1,975) | |
| Total Non-Strategic Office | | | | 409,200 | | | — | | | 4,708 | | | (4,708) | | | — | | | 1,975 | | | (1,975) | |
| | | | 1,401,700 | | | $ | 940 | | | $ | 14,916 | | | $ | (13,976) | | | $ | 603 | | | $ | 6,837 | | | $ | (6,234) | |
Residential Net Operating Income
Net operating income for our residential same property increased by approximately $0.6 million for the three months ended March 31, 2026 compared to 2025.
The following reflects our occupancy and rate information for our residential same property for the three months ended March 31, 2026 and 2025.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Average Monthly Rental Rate (1) | | Average Rental Rate Per Occupied Square Foot | | Average Physical Occupancy (2) | | Average Economic Occupancy (3) |
| Region | | 2026 | 2025 | Change (%) | | 2026 | 2025 | Change (%) | | 2026 | 2025 | Change (%) | | 2026 | 2025 | Change (%) |
| San Francisco | | $ | 3,086 | | $ | 3,115 | | (0.9) | % | | $ | 3.92 | | $ | 3.93 | | (0.3) | % | | 91.7 | % | 90.6 | % | 1.2 | % | | 90.1 | % | 89.2 | % | 1.0 | % |
_______________ (1)Average Monthly Rental Rate is calculated as the average of the quotients obtained by dividing (A) rental revenue as determined in accordance with GAAP, by (B) the number of occupied units, for each month within the applicable fiscal period.
(2)Average Physical Occupancy is defined as (1) the average number of occupied units divided by (2) the total number of units, expressed as a percentage.
(3)Average Economic Occupancy is defined as (1) total possible revenue less vacancy loss divided by (2) total possible revenue, expressed as a percentage. Total possible revenue is determined by valuing average occupied units at contract rates and average vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant units at their Market Rents, Average Economic Occupancy takes into account the fact that units of different sizes and locations within a residential property have different economic impacts on a residential property’s total possible gross revenue. “Market Rents” used by us in calculating Average Economic Occupancy are based on the current market rates set by the managers of our residential properties based on their experience in renting their residential property’s units and publicly available market data. Actual market rents and trends in such rents for a region as reported by others may vary materially from Market Rents used by us. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.
Hotel Net Operating Income
The Boston Marriott Cambridge hotel had Net Operating Income of approximately $1.1 million for the three months ended March 31, 2026, representing a decrease of approximately $0.9 million compared to the three months ended March 31, 2025.
The following reflects our occupancy and rate information for the Boston Marriott Cambridge hotel for the three months ended March 31, 2026 and 2025.
| | | | | | | | | | | | | | | | | | | | |
| | 2026 | | 2025 | |
Change (%) |
| Occupancy | | 73.7 | % | | 74.9 | % | | (1.6) | % |
| Average daily rate | | $ | 259.22 | | | $ | 258.17 | | | 0.4 | % |
| REVPAR | | $ | 191.02 | | | $ | 193.36 | | | (1.2) | % |
Other Operating Revenue and Expense Items
Development and Management Services Revenue
Development and management services revenue decreased by approximately $0.6 million for the three months ended March 31, 2026 compared to 2025. Management services revenue decreased by approximately $1.1 million, partially offset by development services revenue increasing by approximately $0.5 million. The decrease in management services revenue primarily related to a leasing commission earned from an unconsolidated joint venture in New York City in 2025 that did not recur in 2026. The increase in development services revenue was primarily related to an increase in fees associated with tenant improvement projects.
General and Administrative Expense
General and administrative expense increased by approximately $7.1 million for the three months ended March 31, 2026 compared to 2025 primarily due to increases in compensation expense of approximately $6.1 million and approximately $1.0 million increase in other general and administrative expenses. The increase in compensation expense includes an approximately $2.9 million non-cash increase related to the December 2025 issuance of the 2025 Outperformance Plan Awards (“2025 OPP Units”) offset by an approximately $0.2 million decrease in the value of our deferred compensation plan. The increase in other general and administrative expenses is primarily due to an increase in state and local taxes.
Wages directly related to the development of rental properties are capitalized and included in real estate assets on our Consolidated Balance Sheets and amortized over the useful lives of the applicable asset or lease term. Capitalized wages for the three months ended March 31, 2026 and 2025 were approximately $4.1 million and $4.4 million, respectively. These costs are not included in the general and administrative expenses discussed above.
Transaction Costs
Transaction costs decreased by approximately $0.6 million for the three months ended March 31, 2026 compared to 2025. In general, transaction costs relating to the formation of new joint ventures and the pursuit of other transactions are expensed as incurred.
Depreciation and Amortization Expense
Depreciation and amortization expense increased by approximately $7.9 million for the three months ended March 31, 2026 compared to 2025, for BXP and BPLP, as detailed below (in thousands).
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Portfolio | | BXP | | BPLP |
| 2026 | | 2025 | | Change | | 2026 | | 2025 | | Change |
| | | | |
| Same Property Portfolio | | $ | 224,576 | | | $ | 212,994 | | | $ | 11,582 | | | $ | 222,914 | | | $ | 211,291 | | | $ | 11,623 | |
| | | | | | | | | | | | |
| Properties Placed In-Service Portfolio | | 595 | | | 223 | | | 372 | | | 595 | | | 223 | | | 372 | |
| Properties in or Held for Development or Redevelopment Portfolio | | 2,556 | | | 2,649 | | | (93) | | | 2,556 | | | 2,649 | | | (93) | |
| Properties Sold Portfolio | | 240 | | | 4,241 | | | (4,001) | | | 240 | | | 4,241 | | | (4,001) | |
| | $ | 227,967 | | | $ | 220,107 | | | $ | 7,860 | | | $ | 226,305 | | | $ | 218,404 | | | $ | 7,901 | |
Direct Reimbursements of Payroll and Related Costs From Management Services Contracts and Payroll and Related Costs From Management Service Contracts
We have determined that amounts reimbursed for payroll and related costs received from third parties in connection with management services contracts should be reflected on a gross basis instead of on a net basis as we have determined that we are the principal under these arrangements. We anticipate that these two financial statement line items will generally offset each other.
Other Income and Expense Items
Income (Loss) from Unconsolidated Joint Ventures
For the three months ended March 31, 2026 compared to 2025, income (loss) from unconsolidated joint ventures increased by approximately $37.6 million primarily due to the approximately $41.2 million gain on sales of investments realized in connection with the sales of 7750 Wisconsin Avenue and Gateway Commons during the three months ended March 31, 2026 (See Note 5 to the Consolidated Financial Statements).
Gains on Sales of Real Estate
The following table represents the assets that were sold during the three months ended March 31, 2026 and the gains (losses) on sales of real estate recognized by each of BXP and BPLP (dollars in thousands). During the three months ended March 31, 2025, there were no assets sold. For additional information on these sales, refer to Note 3 to the Consolidated Financial Statements.
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| | | | | | | | | | | | Gain (Loss) on Sale (1) |
| Property | | Location | | Date Disposed | | Square Feet | | | | BXP | | BPLP |
| Land: | | | | | | | | | | | | | | |
North First Business Park (2) | | San Jose, CA | | January 14, 2026 | | 191,000 | | | | | | | $ | (229) | | | $ | (229) | |
Shady Grove Parcel 1 (2) | | Rockville, MD | | February 5, 2026 | | N/A | | | | | | (744) | | | (744) | |
| | | | | | 191,000 | | | | | | | (973) | | | (973) | |
| Residential: | | | | | | | | | | | | | | |
The Lofts at Atlantic Wharf (3) | | Boston, MA | | February 25, 2026 | 87,000 | | | | | | | 14,765 | | | 14,765 | |
| | | | | | 87,000 | | | | | | | 14,765 | | | 14,765 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Total Dispositions | | | | | | 278,000 | | | | | | | $ | 13,792 | | | $ | 13,792 | |
_______________
(1)Excludes approximately $0.3 million of loss in connection with the sale of our entire 50% ownership interest in the joint venture entity that owned Gateway Commons as a result of our outstanding receivable balance for development and construction management fees that were forfeited (see Note 5 to the Consolidated Financial Statements), and $0.1 million of loss related to sales that occurred in prior periods.
(2)We had previously recognized impairment losses for these properties.
(3)The fair value of the real estate disposed exceeded the carrying value.
Interest and Other Income (Loss)
Interest and other income (loss) increased by approximately $1.1 million for the three months ended March 31, 2026 compared to 2025, due primarily to a reserve related to the unpaid default interest on one of our related party notes receivable during the three months ended March 31, 2025 of approximately $3.0 million, partially offset by a decrease in our outstanding cash balances and corresponding lower interest income.
Losses from Investments in Securities
Losses from investments in securities for the three months ended March 31, 2026 and 2025 related to investments that we have made to reduce our market risk relating to deferred compensation plans that we maintain for BXP’s officers and former non-employee directors. Under their respective deferred compensation plans, eligible officers and non-employee directors are permitted to defer a portion of their current compensation on a pre-tax basis and receive a tax-deferred return on the amounts deferred based on the performance of specific investments selected by participating officers and non-employee directors. In order to reduce our market risk relating to these plans, we typically acquire, in a separate account that is not restricted as to its use, similar or identical investments as those selected by each officer or non-employee director. This enables us to generally match our liabilities to participants under our deferred compensation plans with equivalent assets and thereby limit our market risk. The performance of these investments is recorded as gains from investments in securities. During the three months ended March 31, 2026 and 2025, we recognized losses of approximately $0.6 million and $0.4 million, respectively, on these investments. By comparison, our general and administrative expense decreased by approximately $0.6 million and $0.4 million during the three months ended March 31, 2026 and 2025, respectively, as a result of decreases in our liability under our deferred compensation plans that was associated with the performance of the specific investments selected by participating officers and former non-employee directors of BXP.
Unrealized Gain (Loss) on Non-Real Estate Investments
We invest in non-real estate investments, which primarily consist of environmentally-focused investment funds. During the three months ended March 31, 2026 and 2025, we recognized an unrealized gain (loss) of approximately $0.2 million and $(0.5) million, respectively, due to the observable changes in the fair value of the investments.
Loss on Sales-Type Lease
During the three months ended March 31, 2025, we recognized approximately $2.5 million in additional costs, which had previously been contingent, related to a ground lease for land at our Reston Next property located in Reston, Virginia. We entered into the ground lease in 2020 with a third-party hotel developer and amended it in 2022. The amendment resulted in the derecognition of the assets related to the ground lease and the classification of the ground lease as a sales-type lease resulting in the recognition of a gain on sales-type lease of approximately $10.1 million.
Loss From Early Extinguishment of Debt
On March 28, 2025, BPLP amended and restated its revolving credit agreement (“2025 Credit Facility”). As a result of the amendment and restatement, during the three months ended March 31, 2025, we recognized a loss from early extinguishment of debt of approximately $0.3 million related to unamortized origination costs.
Interest Expense
Interest expense decreased by approximately $11.4 million for the three months ended March 31, 2026 compared to 2025, as detailed below.
| | | | | | | | |
| Component | | Change in interest expense for the three months ended March 31, 2026 compared to March 31, 2025 |
| | | (in thousands) |
| Increases to interest expense due to: | | |
| Issuance of $1.0 billion in aggregate principal of 2.000% exchangeable senior notes due 2030 on September 29, 2025 | | $ | 5,000 | |
| Unsecured commercial paper | | 1,696 | |
| Amortization expense of financing fees | | 1,023 | |
| Other interest expense (excluding senior notes) | | 63 | |
| Total increases to interest expense | | 7,782 | |
| Decreases to interest expense due to: | | |
| Increase in capitalized interest related to development projects | | (6,174) | |
| Repayment of $1.0 billion in aggregate principal of 3.650% senior notes due 2026 on February 2, 2026 | | (6,138) | |
Decrease in interest associated with unsecured term loans and the unsecured credit facility, net (1) | | (3,884) | |
Mortgage loan financings (1) | | (1,685) | |
| Repayment of $850 million in aggregate principal of 3.200% senior notes due 2025 on January 15, 2025 | | (1,058) | |
| Decrease in interest due to finance leases | | (194) | |
| Total decreases to interest expense | | (19,133) | |
| Total change in interest expense | | $ | (11,351) | |
______________(1)Includes, if applicable, fair value and swap adjustments (See Note 7 to the Consolidated Financial Statements).
Interest expense directly related to the development of rental properties is capitalized and included in real estate assets on our Consolidated Balance Sheets and amortized over the useful lives of the real estate or lease term. As portions of properties are placed in-service, we cease capitalizing interest on that portion and interest is then expensed. Interest capitalized for the three months ended March 31, 2026 and 2025 was approximately $16.5 million and $10.3 million, respectively. These costs are not included in the interest expense referenced above.
At March 31, 2026, our variable rate debt consisted of (1) BPLP’s $2.95 billion 2025 Credit Facility and (2) BPLP’s $750.0 million unsecured commercial paper program (“Commercial Paper Program”). The 2025 Credit Facility consists of (1) a revolving line of credit (the “Revolving Facility”) of $2.25 billion and (2) an unsecured term loan facility (the “Term Loan Facility”) of $700.0 million. As of March 31, 2026, there were $700.0 million and $750.0 million outstanding under the 2025 Credit Facility and Commercial Paper Program, respectively.
In addition, we have the $100.0 million 2024 Unsecured Term Loan and $800.0 million of mortgage notes collateralized by Santa Monica Business Park and 325 Main Street, 355 Main Street, 90 Broadway and Cambridge East Garage (also known as Kendall Center Green Garage) properties that bear interest at variable rates, which have all been hedged with interest rate swaps to fix SOFR for all or a portion of the applicable debt term.
For a summary of our consolidated debt as of March 31, 2026 refer to the heading “Liquidity and Capital Resources—Debt” within “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Noncontrolling Interests in Property Partnerships
Noncontrolling interests in property partnerships increased by approximately $1.1 million for the three months ended March 31, 2026 compared to 2025, as detailed below.
| | | | | | | | | | | | | | | | | | | | |
| Property | | Noncontrolling Interests in Property Partnerships for the three months ended March 31, |
| 2026 | | 2025 | | Change |
| | (in thousands) |
| 767 Fifth Avenue (the General Motors Building) | | $ | 3,108 | | | $ | 2,583 | | | $ | 525 | |
| 7 Times Square | | 3,115 | | | 3,102 | | | 13 | |
| 601 Lexington Avenue | | 2,622 | | | 2,582 | | | 40 | |
| 100 Federal Street | | 3,088 | | | 2,761 | | | 327 | |
| Atlantic Wharf Office Building | | 4,248 | | | 3,840 | | | 408 | |
343 Madison Avenue (1) | | — | | | (4) | | | 4 | |
| 300 Binney Street | | 3,571 | | | 3,522 | | | 49 | |
290 Binney Street (2) | | 117 | | | 363 | | | (246) | |
| | $ | 19,869 | | | $ | 18,749 | | | $ | 1,120 | |
_______________
(1)On August 27, 2025, we acquired our partner’s 45% ownership interest.
(2)Property is currently in development.
Noncontrolling Interest—Common Units of the Operating Partnership
For BXP, noncontrolling interest—common units of the Operating Partnership increased by approximately $4.6 million for the three months ended March 31, 2026 compared to 2025 primarily due to an increase in allocable income, which was the result of recognizing greater gains on sales of real estate during 2026. Due to our ownership structure, there is no corresponding line item on BPLP’s financial statements.
Liquidity and Capital Resources
General
Our principal liquidity needs for the next twelve months and beyond are to:
•fund normal recurring expenses;
•meet debt service and principal repayment obligations on maturing debt, including:
•$100.0 million of principal outstanding on the 2024 Unsecured Term Loan due September 26, 2026, for which we have two, one-year extension options, subject to customary conditions;
•$1.0 billion of 2.750% unsecured senior notes due October 1, 2026; and
•amounts that become due under the Commercial Paper Program;
•fund capital calls from our unconsolidated joint venture investments to fund development costs, capital improvements, leasing costs and debt principal repayment;
•fund mezzanine debt obligations;
•fund development and redevelopment costs;
•fund capital expenditures, including major renovations, tenant improvements and leasing costs;
•fund possible acquisitions of properties, either directly or indirectly through the acquisition of equity interests; and
•make the minimum distribution required to enable BXP to maintain its REIT qualification under the Code.
We expect to satisfy these needs using one or more of the following:
•cash flow from operations;
•distributions of cash flows from joint ventures;
•cash and cash equivalent balances;
•borrowings under BPLP’s Revolving Facility, unsecured term loans, short-term bridge facilities and construction loans (which may require guarantees by BPLP);
•proceeds from the sales of real estate and interests in joint ventures owning real estate, including proceeds generated from BXP’s asset sales program;
•long-term secured and unsecured indebtedness (including unsecured exchangeable indebtedness);
•private equity sources, including institutional investors;
•third-party fees generated by our property management, leasing, development and construction businesses; and
•issuances of BXP equity securities and/or preferred or common units of partnership interests in BPLP.
We draw on multiple financing sources to fund our long-term capital needs. We use BPLP’s Revolving Facility primarily as a bridge facility to fund acquisition opportunities, refinance outstanding indebtedness, fund short-term development costs and for working capital. We also use BPLP’s Revolving Facility to backstop the Commercial Paper Program. Although we may seek to fund our development projects with construction loans, which may require guarantees by BPLP, the source of financing for each particular project ultimately depends on several factors, including, among others, the project’s size and duration, whether the project is funded and owned by a joint venture, the extent of pre-leasing, our available cash and access to cost effective capital at the given time.
We seek to maximize income from our existing properties by maintaining quality standards for our properties that promote high occupancy rates and permit increases in rental rates while reducing client turnover and controlling operating expenses. Our sources of revenue also include third-party fees generated by our property management, leasing, development and construction businesses, interest earned on cash deposits and, from time to time, the sale of assets. We believe these capital sources will continue to meet our short-term liquidity needs. A material adverse change in one or more sources of capital may adversely affect our net cash flows and our ability to repay or refinance existing indebtedness as it matures.
Balance Sheet & Financing Activity
As of May 1, 2026, we had available cash of approximately $464.0 million (of which approximately $120.2 million was attributable to our consolidated joint venture partners). Our liquidity and capital resources depend on a wide range of factors, and we believe that our access to capital and our strong liquidity, including the approximately $1.5 billion available under BPLP’s Revolving Facility (after deducting the $750.0 million being used as a backstop for the Commercial Paper Program) as of May 1, 2026, and our available cash are sufficient to fund our near-term capital needs on existing development and redevelopment projects, repay our maturing indebtedness when due (if not refinanced or extended), satisfy our REIT distribution requirements (see “REIT Tax Distribution Considerations” below) and still allow us to act opportunistically on attractive investment opportunities.
From January 1, 2025 through May 1, 2026, we completed 17 sales transactions of which our share of the aggregate gross sales price was approximately $1.5 billion and our share of the net proceeds was approximately $1.2 billion.
We may seek to enhance our liquidity to fund our current and future development activity, pursue attractive investment opportunities and refinance or repay indebtedness. Depending on then-current interest rates, the overall conditions in the public and private debt and equity markets, and our existing and expected leverage at the time, we may decide to access one or more of these capital sources. Doing so may result in greater cash and cash equivalents pending our use of the proceeds.
On March 6, 2026, BXP renewed and increased the size of its “at the market” (“ATM”) stock offering program to $1.0 billion (See Note 10 to the Consolidated Financial Statements). We have not sold any shares under the ATM equity offering program.
Construction & Redevelopment Activities
As of March 31, 2026, we have six properties under development or redevelopment. Our share of the estimated total investment for these projects is approximately $3.7 billion, of which approximately $2.3 billion remained to be invested as of March 31, 2026. The commercial space in the pipeline, which excludes residential units, was approximately 61% pre-leased as of May 1, 2026.
The following table presents information on properties under construction/redevelopment as of March 31, 2026 (dollars in thousands):
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| | | | | | | | | | | | | | Financings | | | | | |
| Construction/Redevelopment Properties | | Estimated Stabilization Date | | Location | | # of Buildings | | Estimated Square Feet | | Investment to Date (1)(2)(3) | | Estimated Total Investment (1)(2) | | Total Available (1) | | Outstanding at March 31, 2026 (1) | | Estimated Future Equity Requirement (1)(2)(4) | | Percentage Leased (5) | |
| Office | | | | | | | | | | | | | | | | | | | | | |
| 725 12th Street (Redevelopment) | | Q4 2030 | | Washington, DC | | 1 | | 320,000 | | | $ | 97,519 | | | $ | 349,600 | | | $ | — | | | $ | — | | | $ | 252,081 | | | 87 | % | |
| 343 Madison Avenue | | Q2 2031 | | New York, NY | | 1 | | 930,000 | | | 346,101 | | | 1,971,000 | | | — | | | — | | | 1,624,899 | | | 29 | % | |
| Total Office Properties under Construction/Redevelopment | | 2 | | 1,250,000 | | | 443,620 | | | 2,320,600 | | | — | | | — | | | 1,876,980 | | | 44 | % | |
| | | | | | | | | | | | | | | | | | | | | |
| Laboratory/Life Sciences | | | | | | | | | | | | | | | | | | | | | |
| 290 Binney Street (55% ownership) | | Q2 2026 | | Cambridge, MA | | 1 | | 573,000 | | | 379,970 | | | 508,000 | | | — | | | — | | | 128,030 | | | 100 | % | (6) |
| Total Laboratory/Life Sciences Properties under Construction/Redevelopment | 1 | | 573,000 | | | 379,970 | | | 508,000 | | | — | | | — | | | 128,030 | | | 100 | % | |
| | | | | | | | | | | | | | | | | | | | | |
Residential (7) | | | | | | | | | | | | | | | | | | | | | |
| 17 Hartwell Avenue (312 units) (20% ownership) | Q2 2028 | | Lexington, MA | | 1 | | 347,000 | | | 14,645 | | | 35,900 | | | 19,747 | | | — | | | 1,508 | | | — | % | |
| 17 Hartwell Avenue - Retail | | | | | | — | | 2,100 | | | — | | | — | | | — | | | — | | | — | | | — | % | |
| 121 Broadway Street (439 units) | | Q2 2029 | | Cambridge, MA | | 1 | | 490,000 | | | 322,118 | | | 597,800 | | | — | | | — | | | 275,682 | | | — | % | |
| 121 Broadway Street - Retail | | | | | | — | | 1,550 | | | — | | | — | | | — | | | — | | | — | | | — | % | |
| 290 Coles Street (670 Units) (19.46% ownership) | | Q3 2029 | | Jersey City, NJ | | 1 | | 693,000 | | | 20,906 | | | 88,700 | | | 56,400 | | | — | | | 11,394 | | | — | % | (8) |
| 290 Coles Street - Retail | | | | | | — | | 13,000 | | | — | | | — | | | — | | | — | | | — | | | — | % | |
| Total Residential Properties under Construction | | | | 3 | | 1,546,650 | | 357,669 | | | 722,400 | | | 76,147 | | | — | | | 288,584 | | | — | % | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Properties under Construction/Redevelopment | | 6 | | 3,369,650 | | | $ | 1,181,259 | | | $ | 3,551,000 | | | $ | 76,147 | | | $ | — | | | $ | 2,293,594 | | | 61 | % | (9) |
___________
(1)Represents our share.
(2)Each of Investment to Date, Estimated Total Investment and Estimated Future Equity Requirement represent our share of acquisition expenses, as applicable, and reflects our share of the estimated net revenue/expenses that we expect to incur prior to stabilization of the project, including any amounts actually received or paid through March 31, 2026.
(3)Includes approximately $102.4 million of unpaid but accrued construction costs and leasing commissions.
(4)Excludes approximately $102.4 million of unpaid but accrued construction costs and leasing commissions.
(5)Represents percentage leased as of May 1, 2026, including leases with future commencement dates.
(6)The Estimated Total Investment reflects our 55% share of joint venture costs related to 290 Binney Street. In addition, we have the sole obligation to construct an underground electrical vault for an estimated gross cost of $183.9 million. We have entered into a contract to sell the electrical vault to a third-party for a fixed price of $84.1 million upon completion. The net investment of $99.8 million will be included in our outside basis in 290 Binney Street. We have invested $133.1 million for the vault as of March 31, 2026.
(7)Residential Projects are shown in gross square feet beginning first quarter 2026.
(8)On March 5, 2025, we acquired a 19.46% interest in 290 Coles Street. The budget represents our 19.46% ownership of the project budget and financings which includes our share of preferred equity. We contributed $20.0 million of common equity at closing. In addition, we committed to provide up to $65.0 million in preferred equity accruing at a 13.0% internal rate of return. As of March 31, 2026, approximately $60.0 million of preferred equity has been contributed.
(9)Percentage leased excludes residential units.
REIT Tax Distribution Considerations
Dividend
As a REIT, BXP is subject to a number of organizational and operational requirements, including a requirement that BXP currently distribute at least 90% of its annual taxable income (excluding capital gains and with certain other adjustments). Our policy is for BXP to distribute at least 100% of its taxable income, including capital gains, to avoid paying federal tax. BXP’s Board of Directors will continue to evaluate BXP’s dividend rate in light of our actual and projected taxable income (including gains on sales), liquidity requirements and other circumstances, and there can be no assurance that the future dividends declared by BXP’s Board of Directors will not differ materially from the current quarterly dividend amount.
Holders of common and LTIP units (other than unearned MYLTIP units) of limited partnership interest in BPLP receive the same distribution per unit that is paid per share of BXP common stock.
Sales
To the extent that we sell assets at a gain and cannot efficiently use the proceeds in a tax deferred manner for either our development activities or acquisitions, BXP would, at the appropriate time, decide whether it is better to declare a special dividend, adopt a stock repurchase program, reduce indebtedness or retain the cash for future investment opportunities. Such a decision will depend on many factors including, among others, the timing, availability and terms of development and acquisition opportunities, our then-current and anticipated leverage, the cost and availability of capital from other sources, the price of BXP’s common stock and REIT distribution requirements. At a minimum, we expect that BXP would distribute at least that amount of proceeds necessary for BXP to avoid paying corporate level tax on the applicable gains realized from any asset sales.
From time to time in select cases, whether due to a change in use, structuring issues to comply with applicable REIT regulations or other reasons, we may sell an asset that is held by a taxable REIT subsidiary (“TRS”). Such a sale by a TRS would be subject to federal and local taxes.
Cash Flow Summary
The following summary discussion of our cash flows is based on the Consolidated Statements of Cash Flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.
Cash and cash equivalents and cash held in escrows aggregated approximately $581.3 million and $479.2 million at March 31, 2026 and 2025, respectively, representing an increase of approximately $102.0 million. The following table sets forth changes in cash flows:
| | | | | | | | | | | | | | | | | |
| | Three months ended March 31, |
| 2026 | | 2025 | | Change |
| (in thousands) |
| Net cash provided by operating activities | $ | 156,466 | | | $ | 210,036 | | | $ | (53,570) | |
| Net cash provided by (used in) investing activities | 5,827 | | | (309,143) | | | 314,970 | |
| Net cash used in financing activities | (1,138,305) | | | (756,882) | | | (381,423) | |
Our principal source of cash flow is related to the operation of our properties. The weighted-average term of our in-place leases, including leases signed by our unconsolidated joint ventures, excluding residential units, was approximately 7.6 years as of March 31, 2026, with occupancy rates historically in the range of approximately 86% to 92%. Generally, our properties generate a relatively consistent stream of cash flows that provides us with resources to pay operating expenses, debt service and fund regular quarterly dividend and distribution payment requirements. In addition, over the past several years, we have raised capital through the sale of some of our properties and through secured and unsecured borrowings.
Cash is used in investing activities to fund acquisitions, development, net investments in unconsolidated joint ventures and maintenance and repositioning capital expenditures. Cash is provided by investing activities from sales of real estate and sales of investments in unconsolidated joint ventures. Cash provided by (used in) investing activities for the three months ended March 31, 2026 and March 31, 2025 is detailed below:
| | | | | | | | | | | |
| | Three months ended March 31, |
| | 2026 | | 2025 |
| | (in thousands) |
| | | |
Construction in progress (1) | $ | (190,438) | | | $ | (138,796) | |
Building, pre-development and other capital improvements (2) | (30,765) | | | (57,395) | |
| Tenant improvements | (67,095) | | | (60,338) | |
Proceeds from sales of real estate (3) | 124,661 | | | — | |
| | | |
Capital contributions to unconsolidated joint ventures (4) | (43,167) | | | (52,611) | |
| Capital distributions from unconsolidated joint ventures | 183 | | | — | |
Proceeds from sales of investments in unconsolidated joint ventures (5) | 214,733 | | | — | |
| Investment in non-real estate investments | (412) | | | (434) | |
| Issuance of note receivables (including related party) | (3,849) | | | (600) | |
| | | |
| Investments in securities, net | 1,976 | | | 1,031 | |
| Net cash provided by (used in) investing activities | $ | 5,827 | | | $ | (309,143) | |
Cash provided by (used in) investing activities changed primarily due to the following:
(1)Construction in progress for the three months ended March 31, 2026 included ongoing expenditures associated with Reston Next Retail which was fully placed in-service during the three months ended March 31, 2026. In addition, we incurred costs associated with our continued development/redevelopment of 290 Binney Street, 121 Broadway Street, 725 12th Street and 343 Madison Avenue.
Construction in progress for the three months ended March 31, 2025 included ongoing expenditures associated with Reston Next Office Phase II and Reston Next Retail, which were partially placed in-service during the three months ended March 31, 2025. In addition, we incurred costs associated with our continued development/redevelopment of 290 Binney Street, 121 Broadway Street, 725 12th Street and 1050 Winter Street.
(2)Building, pre-development and other capital improvements for the three months ended March 31, 2025 included approximately $18.0 million of pre-development expenditures associated with the 343 Madison Avenue project. Beginning July 31, 2025, costs associated with the continued development of 343 Madison Avenue are included within construction in progress.
(3)Proceeds from sales of real estate for the three months ended March 31, 2026 was primarily from three transactions (See Note 3 to the Consolidated Financial Statements).
(4)Capital contributions to unconsolidated joint ventures for the three months ended March 31, 2026 consisted primarily of cash contributions of approximately $30.3 million and $6.1 million to our 290 Coles Street and 200 Fifth Avenue joint ventures, respectively.
Capital contributions to unconsolidated joint ventures for the three months ended March 31, 2025 consisted primarily of cash contributions of approximately $21.2 million, $20.0 million and $6.2 million to our 751 Gateway, 290 Coles Street and 360 Park Avenue South joint ventures, respectively. On March 5, 2025, we entered into a new joint venture for the development of 290 Coles Street.
(5)Proceeds from sales of investments in unconsolidated joint ventures for the three months ended March 31, 2026 was primarily from two transactions (See Note 5 to the Consolidated Financial Statements).
Cash used in financing activities for the three months ended March 31, 2026 totaled approximately $1.1 billion. This amount consisted primarily of the repayment of BPLP’s $1.0 billion in aggregate principal amount of its 3.650% unsecured senior notes due February 1, 2026 and the payment of our regular dividends and distributions to our shareholders and unitholders. Future debt payments are discussed below under the heading “Debt.”
Capitalization
The following table presents Consolidated Market Capitalization and BXP’s Share of Market Capitalization, as well as the corresponding ratios of Consolidated Debt to Consolidated Market Capitalization and BXP’s Share of Debt to BXP’s Share of Market Capitalization (in thousands, except for percentages):
| | | | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2026 | |
| | Shares / Units Outstanding | | Common Stock Equivalent | | Equivalent Value (1) | |
| Common Stock | | 158,676 | | | 158,676 | | | $ | 8,235,284 | | |
| Common Operating Partnership Units | | 18,787 | | | 18,787 | | | 975,045 | | (2) |
| Total Equity | | | | 177,463 | | | $ | 9,210,329 | | |
| | | | | | | |
| Consolidated Debt | | | | | | $ | 15,614,009 | | |
| Add: | | | | | | | |
BXP’s share of unconsolidated joint venture debt (3) | | | | | | 1,098,382 | | |
| Subtract: | | | | | | | |
Partners’ share of Consolidated Debt (4) | | | | | | 1,364,858 | | |
| BXP’s Share of Debt | | | | | | $ | 15,347,533 | | |
| | | | | | | |
| Consolidated Market Capitalization | | | | | | $ | 24,824,338 | | |
| BXP’s Share of Market Capitalization | | | | | | $ | 24,557,862 | | |
| Consolidated Debt/Consolidated Market Capitalization | | | | | | 62.90 | % | |
| BXP’s Share of Debt/BXP’s Share of Market Capitalization | | | | | | 62.50 | % | |
_______________
(1)Values are based on the closing price per share of BXP’s common stock on the New York Stock Exchange on March 31, 2026 of $51.90.
(2)Includes long-term incentive plan units (including 2012 OPP Units and 2013 - 2023 MYLTIP Units but excludes the 2024 - 2026 MYLTIP Units and 2025 OPP Units because the performance periods had not ended as of March 31, 2026).
(3)See page 62 for additional information.
(4)See page 60 for additional information.
Consolidated Debt to Consolidated Market Capitalization Ratio is a measure of leverage commonly used by analysts in the REIT sector. We present this measure as a percentage and it is calculated by dividing (A) our consolidated debt by (B) our consolidated market capitalization, which is the market value of our outstanding equity securities plus our consolidated debt. Consolidated market capitalization is the sum of:
(1) our consolidated debt; plus
(2) the product of (x) the closing price per share of BXP common stock on March 31, 2026, as reported by the New York Stock Exchange, multiplied by (y) the sum of:
(i) the number of outstanding shares of common stock of BXP,
(ii) the number of outstanding OP Units in BPLP (excluding OP Units held by BXP),
(iii) the number of OP Units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units, and
(iv) the number of OP Units issuable upon conversion of 2012 OPP Units, and 2013 - 2023 MYLTIP Units that were issued in the form of LTIP Units.
The calculation of consolidated market capitalization does not include LTIP Units issued in the form of 2012 and 2025 OPP Units or MYLTIP Units unless and until certain performance thresholds are achieved and they are earned. Because their performance periods have not yet ended, the 2024 - 2026 MYLTIP Units and 2025 OPP Units are not included in this calculation as of March 31, 2026.
We also present BXP’s Share of Market Capitalization and BXP’s Share of Debt/BXP’s Share of Market Capitalization, which are calculated in the same manner, except that BXP’s Share of Debt is utilized instead of our consolidated debt in both the numerator and the denominator. BXP’s Share of Debt is defined as our consolidated debt plus our share of debt from our unconsolidated joint ventures (calculated based upon our ownership percentage), minus our partners’ share of debt from our consolidated joint ventures (calculated based upon the partners’ percentage ownership interests adjusted for basis differentials). Management believes that BXP’s Share
of Debt provides useful information to investors regarding our financial condition because it includes our share of debt from unconsolidated joint ventures and excludes our partners’ share of debt from consolidated joint ventures, in each case presented on the same basis. We have several significant joint ventures and presenting various measures of financial condition in this manner can help investors better understand our financial condition and/or results of operations after taking into account our economic interest in these joint ventures. We caution investors that the ownership percentages used in calculating BXP’s Share of Debt may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both for routine and major decisions), distributions, transferability of interests, financing and guarantees, liquidations and other matters. Moreover, in some cases we exercise significant influence over, but do not control, the joint venture in which case GAAP requires that we account for the joint venture entity using the equity method of accounting and we do not consolidate it for financial reporting purposes. In other cases, GAAP requires that we consolidate the venture even though our partner(s) own(s) a significant percentage interest. As a result, management believes that the presentation of BXP’s Share of a financial measure should not be considered a substitute for, and should only be considered with and as a supplement to our financial information presented in accordance with GAAP.
We present these supplemental ratios because our degree of leverage could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes and because different investors and lenders consider one or both of these ratios. Investors should understand that these ratios are, in part, a function of the market price of the common stock of BXP and as such will fluctuate with changes in such price, and they do not necessarily reflect our capacity to incur additional debt to finance our activities or our ability to manage our existing debt obligations. However, for a company like BXP, whose assets are primarily income-producing real estate, these ratios may provide investors with an alternate indication of leverage, so long as they are evaluated along with the ratio of indebtedness to other measures of asset value used by financial analysts and other financial ratios, as well as the various components of our outstanding indebtedness.
For a discussion of our unconsolidated joint venture indebtedness, see “Liquidity and Capital Resources—Investment in Unconsolidated Joint Ventures - Secured Debt” within “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” and for a discussion of our consolidated joint venture indebtedness see “Debt” below.
Debt
The following table summarizes certain information with respect to our indebtedness outstanding as of March 31, 2026 and 2025 (dollars in thousands).
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Interest Rate | | | | Amount |
| | Stated | | GAAP (1) | | Maturity Date | | 3/31/2026 | | 3/31/2025 |
Unsecured Senior Notes (2) | | | | | | | | | | |
Unsecured Senior Notes (3) | | 3.650 | % | | 3.766 | % | | February 1, 2026 | | N/A | | $ | 1,000,000 | |
| Unsecured Senior Notes | | 2.750 | % | | 3.495 | % | | October 1, 2026 | | $ | 1,000,000 | | | 1,000,000 | |
| Unsecured Senior Notes | | 6.750 | % | | 6.924 | % | | December 1, 2027 | | 750,000 | | | 750,000 | |
| Unsecured Senior Notes | | 4.500 | % | | 4.628 | % | | December 1, 2028 | | 1,000,000 | | | 1,000,000 | |
| Unsecured Senior Notes | | 3.400 | % | | 3.505 | % | | June 21, 2029 | | 850,000 | | | 850,000 | |
| Unsecured Senior Notes | | 2.900 | % | | 2.984 | % | | March 15, 2030 | | 700,000 | | | 700,000 | |
| Unsecured Senior Notes | | 3.250 | % | | 3.343 | % | | January 30, 2031 | | 1,250,000 | | | 1,250,000 | |
| Unsecured Senior Notes | | 2.550 | % | | 2.671 | % | | April 1, 2032 | | 850,000 | | | 850,000 | |
| Unsecured Senior Notes | | 2.450 | % | | 2.524 | % | | October 1, 2033 | | 850,000 | | | 850,000 | |
| Unsecured Senior Notes | | 6.500 | % | | 6.619 | % | | January 15, 2034 | | 750,000 | | | 750,000 | |
| Unsecured Senior Notes | | 5.750 | % | | 5.842 | % | | January 15, 2035 | | 850,000 | | | 850,000 | |
| Total Principal Amount | | | | | | | | 8,850,000 | | | 9,850,000 | |
| Less: Unamortized discount and deferred financing costs, net | | | | | | | | 41,326 | | | 52,176 | |
| Carrying Amount | | | | | | | | 8,808,674 | | | 9,797,824 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Interest Rate | | | | Amount |
| | Stated | | GAAP (1) | | Maturity Date | | 3/31/2026 | | 3/31/2025 |
| Unsecured Exchangeable Senior Notes | | 2.000 | % | | 2.496 | % | | October 1, 2030 | | 1,000,000 | | | N/A |
| Less: Unamortized deferred financing costs | | | | | | | | 22,613 | | | N/A |
| Carrying Amount | | | | | | | | 977,387 | | | N/A |
| | | | | | | | | | |
Unsecured Commercial Paper (4) | | 4.01 | % | | 4.02 | % | | Various | | 750,000 | | | 500,000 | |
Unsecured Line of Credit (Revolving Credit Facility) (5) | | — | % | | — | % | | March 29, 2030 | | — | | | 300,000 | |
| | | | | | | | | | |
| Unsecured Term Loans | | | | | | | | | | |
2024 Unsecured Term Loan (6) | | 4.73 | % | | 4.88 | % | | September 26, 2026 | | 100,000 | | | 100,000 | |
Unsecured Term Loan Facility (7) | | 4.62 | % | | 4.75 | % | | March 30, 2029 | | 700,000 | | | 700,000 | |
| Total Principal Amount | | | | | | | | 800,000 | | | 800,000 | |
| Less: Deferred financing costs and fair value adjustments, net | | | | | | | | 2,691 | | | 3,842 | |
| Carrying Amount | | | | | | | | 797,309 | | | 796,158 | |
| | | | | | | | | | |
| Mortgage Notes | | | | | | | | | | |
767 Fifth Avenue (the General Motors Building) (60% ownership) (2)(8) | | 3.43 | % | | 3.64 | % | | June 9, 2027 | | 2,300,000 | | | 2,300,000 | |
Santa Monica Business Park (2)(9) | | 5.28 | % | | 5.40 | % | | October 8, 2028 | | 200,000 | | | 200,000 | |
90 Broadway, 325 Main Street, 355 Main Street, and Cambridge East Garage (also known as Kendall Center Green Garage) (2)(10) | 6.04 | % | | 6.27 | % | | October 26, 2028 | | 600,000 | | | 600,000 | |
901 New York Avenue (11) | | 5.00 | % | | 5.06 | % | | January 5, 2029 | | 196,994 | | | 201,191 | |
601 Lexington Avenue (55% ownership) (2) | | 2.79 | % | | 2.93 | % | | January 9, 2032 | | 1,000,000 | | | 1,000,000 | |
| Total Principal Amount | | | | | | | | 4,296,994 | | | 4,301,191 | |
| Less: Deferred financing costs and fair value adjustments, net | | | | | | | | 16,355 | | | 23,481 | |
| Carrying Amount | | | | | | | | 4,280,639 | | | 4,277,710 | |
| | | | | | | | | | |
| Total Consolidated Debt | | | | | | | | $ | 15,614,009 | | | $ | 15,671,692 | |
_______________
(1)For the unsecured senior notes, the GAAP rate represents the yield on issuance date including the effects of discounts on the notes, settlements of interest rate contracts and the amortization of financing costs. For all other debt, the GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, the effects of hedging transactions (if any and excluding capped calls classified as equity) and adjustments required under ASC 805 “Business Combinations” to reflect loans and swaps at their fair values (if any).
(2)No principal amounts are due prior to maturity.
(3)These unsecured senior notes were repaid at maturity, see Note 6 to the Consolidated Financial Statements.
(4)At March 31, 2026, the weighted average interest rate of the commercial paper notes outstanding was approximately 4.10% per annum, and they had a weighted-average maturity of 40 days from the date of issuance. At May 1, 2026, BPLP had an aggregate of $750.0 million of commercial paper notes outstanding that bore interest at a weighted-average rate of approximately 4.12% per annum and had a weighted-average maturity of 42 days, from the date of issuance.
(5)The unsecured line of credit bears interest at a variable rate of SOFR+0.85% per annum. The 2025 Credit Facility is used as a backstop for the $750.0 million Commercial Paper Program. As such, BPLP intends to maintain, at a minimum, availability under the unsecured line of credit in an amount equal to the amount of unsecured commercial paper notes outstanding. The table below provides the principal indebtedness outstanding and remaining capacity under the unsecured line of credit at March 31, 2026 and May 1, 2026 (dollars in thousands).
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | March 31, 2026 | | May 1, 2026 |
| | Facility | | Outstanding | | Remaining Capacity | | Outstanding | | Remaining Capacity |
| Unsecured Line of Credit | | $ | 2,250,000 | | | $ | — | | | $ | 2,250,000 | | | $ | — | | | $ | 2,250,000 | |
| Less: | | | | | | | | | | |
| Unsecured Commercial Paper | | | | | | 750,000 | | | | | 750,000 | |
| Letters of Credit | | | | | | 5,253 | | | | | 1,253 | |
| Total Remaining Capacity | | | | | | $ | 1,494,747 | | | | | $ | 1,498,747 | |
(6)The 2024 Unsecured Term Loan bears interest at a variable rate of SOFR+1.05% per annum. BPLP entered into an interest rate swap contract to fix SOFR at a weighted-average fixed interest rate of 3.6775% per annum for the period commencing on April 7, 2025 and ending on April 6, 2026. We did not purchase a new interest rate swap contract. Stated interest rate reflects the weighted-average fixed interest rate based on the interest rate swap contracts plus 1.05% per annum. The 2024 Unsecured Term Loan has two one-year extension options, subject to certain conditions.
(7)The Unsecured Term Loan Facility bears interest at a variable rate of SOFR+0.95% per annum and has two, six-month extension options, each subject to customary conditions.
(8)In connection with the refinancing of the loan, we guaranteed the consolidated entity’s obligation to fund various reserves for tenant improvement costs and allowances, leasing commissions and free rent obligations in lieu of cash deposits. As of March 31, 2026, the maximum funding obligation under the guarantee was approximately $6.4 million. We earn a fee from the joint venture for providing the guarantee and have an agreement with our partners to reimburse the joint venture for their share of any payments made under the guarantee.
(9)The mortgage loan bears interest at a variable rate of Daily Simple SOFR+1.60% per annum. BPLP entered into an interest rate swap contract to fix Daily Simple SOFR at a weighted-average fixed interest rate of 3.6775% per annum for the period commencing on April 7, 2025 and ending on April 6, 2026. We did not purchase a new interest rate swap contract. Stated interest rate reflects the weighted-average fixed interest rate based on the interest rate swap contracts plus 1.60% per annum.
(10)The mortgage loan bears interest at a variable rate of Daily Compounded SOFR+2.25% per annum. BPLP entered into three interest rate swap contracts with notional amounts aggregating $600.0 million to fix Daily Compounded SOFR at a weighted-average fixed interest rate of 3.7925% for the period commencing on December 15, 2023 and ending on October 26, 2028. The stated interest rate reflects the weighted average fixed interest rate based on the interest rate swap contracts plus 2.25% per annum.
(11)The loan has a one-year extension option remaining, subject to certain conditions.
The following table lists our mortgage notes, net outstanding and our partners’ share, based on their respective ownership percentage, from our consolidated joint ventures as of March 31, 2026 (dollars in thousands).
| | | | | | | | | | | | | | |
| | Carrying Amount |
| Properties | | 100% | | Partners’ Share |
| Wholly-owned | | | | |
| 901 New York Avenue | | $ | 196,645 | | | N/A |
| Santa Monica Business Park | | 199,364 | | | N/A |
| 90 Broadway, 325 Main Street, 355 Main Street, and Cambridge East Garage (also known as Kendall Center Green Garage) | | 596,549 | | | N/A |
| Subtotal | | 992,558 | | | N/A |
| Consolidated Joint Ventures | | | | |
767 Fifth Avenue (the General Motors Building) (60% ownership) (1) | | 2,295,866 | | | $ | 918,361 | |
| 601 Lexington Avenue (55% ownership) | | 992,215 | | | 446,497 | |
| Subtotal | | 3,288,081 | | | 1,364,858 | |
| Total | | $ | 4,280,639 | | | $ | 1,364,858 | |
_______________
(1)The partners’ share of the carrying amount has been adjusted for basis differentials.
The table below provides the debt statistics of our outstanding consolidated indebtedness at March 31, 2026 and March 31, 2025.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2026 | | March 31, 2025 |
| | | Weighted Average | | | | Weighted Average |
| % of Total Debt | | Stated Rates | | GAAP Rates (1) | | Maturity (years) | | % of Total Debt | | Stated Rates | | GAAP Rates (1) | | Maturity (years) |
Floating Rate Debt (2) | 9.27 | % | | 4.30 | % | | 4.37 | % | | 1.5 | | | 9.55 | % | | 5.12 | % | | 5.19 | % | | 2.9 | |
Fixed Rate Debt (3) | 90.73 | % | | 3.86 | % | | 4.00 | % | | 4.0 | | | 90.45 | % | | 3.95 | % | | 4.12 | % | | 4.6 | |
| Consolidated Debt | 100.00 | % | | 3.90 | % | | 4.04 | % | | 3.7 | | | 100.00 | % | | 4.06 | % | | 4.22 | % | | 4.5 | |
| | | | | | | | | | | | | | | |
| Unsecured Debt | 72.58 | % | | 3.94 | % | | 4.06 | % | | 4.2 | | | 72.70 | % | | 4.18 | % | | 4.29 | % | | 4.8 | |
| Secured Debt | 27.42 | % | | 3.80 | % | | 3.99 | % | | 2.6 | | | 27.30 | % | | 3.75 | % | | 4.05 | % | | 3.6 | |
| Consolidated Debt | 100.00 | % | | 3.90 | % | | 4.04 | % | | 3.7 | | | 100.00 | % | | 4.06 | % | | 4.22 | % | | 4.5 | |
_______________
(1)The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, the effects of hedging transactions (if any and excluding capped calls classified as equity) and adjustments required under ASC 805 “Business Combinations” to reflect loans and swaps at their fair values (if any).
(2)The unsecured commercial paper notes are included in our floating rate debt statistics. At March 31, 2026, the unsecured commercial paper notes outstanding bore a weighted-average interest rate of approximately 4.10% per annum and had a weighted-average maturity of 40 days from the date of issuance.
(3)The Fixed Rate Debt includes the effects of hedging transactions.
Derivative Instruments and Hedging Activities
As of March 31, 2026, we had $900.0 million of interest rate swaps outstanding, where hedge accounting was elected, with a fair value of approximately $(3.8) million, see Note 7 to the Consolidated Financial Statements.
Investment in Unconsolidated Joint Ventures - Secured Debt
We have investments in unconsolidated joint ventures with our effective ownership interests ranging from approximately 19% to approximately 71%. Thirteen of these ventures have mortgage indebtedness. We exercise significant influence over, but do not control, these entities. As a result, we account for them using the equity method of accounting. See also Note 5 to the Consolidated Financial Statements. At March 31, 2026, the aggregate carrying amount of debt, including both our and our partners’ share, incurred by these ventures was approximately $2.7 billion (of which our proportionate share is approximately $1.1 billion). The table below summarizes the outstanding debt of these joint venture properties at March 31, 2026. In addition to other guarantees specifically noted in the table, we have agreed to customary environmental indemnifications and nonrecourse carve-outs (e.g., guarantees against fraud, misrepresentation and bankruptcy) as well as the completion of development projects on certain of the loans.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Properties | | Nominal % Ownership | | Stated Interest Rate | | GAAP Interest Rate (1) | | Term of Variable Rate + Spread | | Stated Principal Amount | | | Deferred Financing Costs, Net | | Carrying Amount | | Carrying Amount (Our share) | | | | Maturity Date |
| | | (dollars in thousands) |
| 360 Park Avenue South | | 71.11 | % | | 6.17 | % | | 6.49 | % | | Term SOFR+2.50% | | $ | 220,000 | | | | $ | (1,053) | | | $ | 218,947 | | | $ | 155,693 | | | (2)(3)(4) | | December 13, 2027 |
| 1265 Main Street | | 50.00 | % | | 3.77 | % | | 3.84 | % | | N/A | | 32,447 | | | | (160) | | | 32,287 | | | 16,144 | | | | | January 1, 2032 |
| Colorado Center | | 50.00 | % | | 3.56 | % | | 3.59 | % | | N/A | | 550,000 | | | | (240) | | | 549,760 | | | 274,880 | | | (2) | | August 9, 2027 |
| The Hub on Causeway - Podium & 100 Causeway Street | | 50.00 | % | | 5.73 | % | | 5.94 | % | | N/A | | 465,000 | | | | (4,773) | | | 460,227 | | | 230,113 | | | (2) | | April 9, 2031 |
| Hub50House | | 50.00 | % | | 4.43 | % | | 4.51 | % | | SOFR+1.35% | | 185,000 | | | | (848) | | | 184,152 | | | 92,076 | | | (2)(5) | | June 17, 2032 |
| Safeco Plaza | | 33.67 | % | | 4.82 | % | | 6.21 | % | | SOFR+2.32% | | 250,000 | | | | (143) | | | 249,857 | | | 84,127 | | | (2)(6) | | September 1, 2026 |
| 500 North Capitol Street, NW | | 30.00 | % | | 6.83 | % | | 7.16 | % | | N/A | | 105,000 | | | | (51) | | | 104,949 | | | 31,473 | | | (2)(7) | | June 5, 2026 |
| 200 Fifth Avenue | | 26.69 | % | | 4.34 | % | | 5.60 | % | | Term SOFR+1.41% | | 596,511 | | | | (4,454) | | | 592,057 | | | 154,296 | | | (8) | | November 24, 2028 |
| 3 Hudson Boulevard | | 25.00 | % | | 8.92 | % | | 10.73 | % | | Term SOFR+5.25% | | 108,000 | | | | (3,128) | | | 104,872 | | | 26,218 | | | (2)(3)(9)(10) | | November 9, 2027 |
| 3 Hudson Boulevard | | 25.00 | % | | 10.92 | % | | 10.92 | % | | Term SOFR+7.25% | | 21,493 | | | | — | | | 21,493 | | | 5,373 | | | (2)(3)(9) | | November 9, 2027 |
| Skymark - Reston Next Residential | | 20.00 | % | | 5.67 | % | | 5.99 | % | | SOFR+2.00% | | 140,000 | | | | (53) | | | 139,947 | | | 27,989 | | | (2)(3)(11) | | May 13, 2026 |
| 17 Hartwell Avenue | | 20.00 | % | | 6.75 | % | | 6.87 | % | | N/A | | — | | | | — | | | — | | | — | | | (2)(12) | | July 10, 2030 |
| 290 Coles Street | | 19.46 | % | | N/A | | N/A | | Term SOFR+2.50% | | — | | | | — | | | — | | | — | | | (2)(3)(13) | | March 5, 2029 |
| Total | | | | | | | | | | $ | 2,673,451 | | | | $ | (14,903) | | | $ | 2,658,548 | | | $ | 1,098,382 | | | | | |
_______________
(1)The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing costs, which includes mortgage recording fees, the effects of hedging transactions (if any) and adjustments required under ASC 805 “Business Combinations” to reflect loans at their fair values (if any).
(2)The loan requires interest only payments with a balloon payment due at maturity.
(3)The loan includes certain extension options, subject to certain conditions.
(4)The joint venture entered into an interest rate cap agreement to cap Term SOFR rate at 5.00% per annum on a notional amount of $220.0 million through January 15, 2027.
(5)The joint venture entered into interest rate swap contracts with notional amounts aggregating $185.0 million through April 10, 2032, resulting in a fixed rate of approximately 4.432% per annum through the expiration of the interest rate swap contracts.
(6)The loan bears interest at a variable rate equal to the greater of (x) 2.35% or (y) SOFR plus 2.32% per annum. The joint venture entered into an interest rate cap agreement with a financial institution to limit its exposure to increases in the SOFR rate at a cap of 2.50% per annum on a notional amount of $250.0 million through September 1, 2026.
(7)The indebtedness consists of (x) a $70.0 million mortgage loan payable (Note A) which bears interest at a fixed rate of 6.23% per annum, and (y) a $35.0 million mortgage loan payable (Note B) which bears interest at a fixed rate of 8.03% per annum. We provided $10.5 million of the Note B mortgage financing to the joint venture. Our portion of the loan is reflected as Related Party Notes Receivable, Net on our Consolidated Balance Sheets.
(8)The joint venture entered into interest rate swap contracts with notional amounts aggregating $600.0 million through June 2028, resulting in a fixed rate of approximately 4.34% per annum through the expiration of the interest rate swap contracts.
(9)The indebtedness consists of (x) a $108.0 million senior loan with a third-party lender and (y) a mezzanine loan provided by us with a maximum commitment of $50.0 million. As of March 31, 2026, we have funded approximately $21.5 million of the mezzanine loan. The loan is reflected as Related Party Notes Receivable, Net on our Consolidated Balance Sheets.
(10)The joint venture entered into an interest rate cap agreement with a financial institution to limit its exposure to increases in the Term SOFR rate to a cap of 6.00% per annum on a notional amount of $108.0 million through November 9, 2027.
(11)The construction financing has a borrowing capacity of $140.0 million.
(12)No amounts have been drawn under the $98.7 million construction loan.
(13)No amounts have been drawn under the $225.0 million construction loan.
State and Local Tax Matters
Because BXP is organized and qualifies as a REIT, it is generally not subject to federal income taxes, but is subject to certain state and local taxes. In the normal course of business, certain entities through which we own real estate either have undergone, or are currently undergoing, tax audits or other inquiries. Although we believe that we have substantial arguments in favor of our position in the ongoing audits, in some instances there is no controlling precedent or interpretive guidance on the specific point at issue. Collectively, tax deficiency notices received to date from the jurisdictions conducting the ongoing audits have not been material. However, there can be no assurance that future audits will not occur with increased frequency or that the ultimate result of such audits will not have a material adverse effect on our results of operations.
Funds from Operations
Pursuant to the revised definition of FFO adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), we calculate FFO for each of BXP and BPLP by adjusting net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership (computed in accordance with GAAP), respectively, for gains (or losses) from sales of properties, including a change in control, impairment losses on depreciable real estate consolidated on our balance sheet, impairment losses on our investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and our share of real estate-related depreciation and amortization. FFO is a non-GAAP financial measure. We believe the presentation of FFO, combined with the presentation of required GAAP financial measures, improves the understanding of operating results of REITs among the investing public and helps make comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for understanding and comparing our operating results because, by excluding gains and losses related to sales or a change in control of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies.
Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently. We believe that in order to facilitate a clear understanding of our operating results, FFO should be examined in conjunction with net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership as presented in our Consolidated Financial Statements. FFO should not be considered as a substitute for net income attributable to BXP, Inc. or net income attributable to Boston Properties Limited Partnership (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.
BXP
The following table presents a reconciliation of net income attributable to BXP, Inc. to FFO attributable to BXP, Inc. for the three months ended March 31, 2026 and 2025:
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended March 31, | | |
| | | 2026 | | 2025 | | | | | | |
| | | (in thousands) |
| Net income attributable to BXP, Inc. | | $ | 101,576 | | | $ | 61,177 | | | | | | | |
| Add: | | | | | | | | | | |
| Noncontrolling interest—common units of the Operating Partnership | | 11,561 | | | 6,979 | | | | | | | |
| Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | | | | | |
| Net income | | 133,006 | | | 86,905 | | | | | | | |
| Add: | | | | | | | | | | |
| Depreciation and amortization | | 227,967 | | | 220,107 | | | | | | | |
| Noncontrolling interests in property partnerships’ share of depreciation and amortization | | (20,871) | | | (20,464) | | | | | | | |
| BXP’s share of depreciation and amortization from unconsolidated joint ventures | | 13,506 | | | 17,327 | | | | | | | |
| Corporate-related depreciation and amortization | | (567) | | | (716) | | | | | | | |
| Non-real estate depreciation and amortization | | 2,131 | | | 2,130 | | | | | | | |
| Loss on sales-type lease | | — | | | 2,490 | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Less: | | | | | | | | | | |
| Gain on sale / consolidation included within income (loss) from unconsolidated joint ventures | | 41,233 | | | — | | | | | | | |
| Gains on sales of real estate | | 13,402 | | | — | | | | | | | |
| | | | | | | | | | |
| Unrealized gain (loss) on non-real estate investments | | 188 | | | (483) | | | | | | | |
| Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | | | | | |
| Funds from Operations (FFO) attributable to the Operating Partnership common unitholders (including BXP, Inc.) | | 280,480 | | | 289,513 | | | | | | | |
| Less: | | | | | | | | | | |
| Noncontrolling interest—common units of the Operating Partnership’s share of funds from operations | | 28,244 | | | 28,922 | | | | | | | |
| Funds from Operations attributable to BXP, Inc. | | $ | 252,236 | | | $ | 260,591 | | | | | | | |
| Our percentage share of Funds from Operations—basic | | 89.93 | % | | 90.01 | % | | | | | | |
| Weighted average shares outstanding—basic | | 158,555 | | | 158,202 | | | | | | | |
The following tables present a reconciliation of net income attributable to BXP, Inc. to Diluted FFO attributable to BXP, Inc. for income (numerator) and shares/units (denominator) for the three months ended March 31, 2026 and 2025:
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended March 31, | | |
| | | 2026 | | 2025 | | | | | | |
| | | (in thousands) |
| Net income attributable to BXP, Inc. | | $ | 101,576 | | | $ | 61,177 | | | | | | | |
| Add: | | | | | | | | | | |
| Noncontrolling interest—common units of the Operating Partnership | | 11,561 | | | 6,979 | | | | | | | |
| Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | | | | | |
| Net income | | 133,006 | | | 86,905 | | | | | | | |
| Add: | | | | | | | | | | |
| Depreciation and amortization | | 227,967 | | | 220,107 | | | | | | | |
| Noncontrolling interests in property partnerships’ share of depreciation and amortization | | (20,871) | | | (20,464) | | | | | | | |
| BXP’s share of depreciation and amortization from unconsolidated joint ventures | | 13,506 | | | 17,327 | | | | | | | |
| Corporate-related depreciation and amortization | | (567) | | | (716) | | | | | | | |
| Non-real estate depreciation and amortization | | 2,131 | | | 2,130 | | | | | | | |
| Loss on sales-type lease | | — | | | 2,490 | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Less: | | | | | | | | | | |
| Gain on sale / consolidation included within income (loss) from unconsolidated joint ventures | | 41,233 | | | — | | | | | | | |
| Gains on sales of real estate | | 13,402 | | | — | | | | | | | |
| | | | | | | | | | |
| Unrealized gain (loss) on non-real estate investments | | 188 | | | (483) | | | | | | | |
| Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | | | | | |
| Funds from Operations (FFO) attributable to the Operating Partnership common unitholders (including BXP, Inc.) | | 280,480 | | | 289,513 | | | | | | | |
| Effect of Dilutive Securities: | | | | | | | | | | |
| Stock based compensation | | — | | | — | | | | | | | |
| Diluted FFO | | 280,480 | | | 289,513 | | | | | | | |
| Less: | | | | | | | | | | |
| Noncontrolling interest—common units of the Operating Partnership’s share of diluted FFO | | 28,188 | | | 28,835 | | | | | | | |
Diluted FFO attributable to BXP, Inc. (1) | | $ | 252,292 | | | $ | 260,678 | | | | | | | |
_______________(1)BXP’s share of diluted Funds from Operations was 89.95% and 90.04% for the three months ended March 31, 2026 and 2025, respectively.
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended March 31, | | |
| | | 2026 | | 2025 | | | | | | |
| | shares/units (in thousands) | | |
| | | | | | | | | | |
| Basic Funds from Operations | | 176,318 | | | 175,752 | | | | | | | |
| Effect of Dilutive Securities: | | | | | | | | | | |
| Stock based compensation | | 501 | | | 430 | | | | | | | |
| Diluted Funds from Operations | | 176,819 | | | 176,182 | | | | | | | |
| Less: | | | | | | | | | | |
| Noncontrolling interest—common units of the Operating Partnership’s share of diluted Funds from Operations | | 17,763 | | | 17,550 | | | | | | | |
Diluted Funds from Operations attributable to BXP, Inc. (1) | | 159,056 | | | 158,632 | | | | | | | |
_______________
(1)BXP’s share of diluted Funds from Operations was 89.95% and 90.04% for the three months ended March 31, 2026 and 2025, respectively.
BPLP
The following table presents a reconciliation of net income attributable to Boston Properties Limited Partnership to FFO attributable to Boston Properties Limited Partnership for the three months ended March 31, 2026 and 2025:
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended March 31, | | |
| | | 2026 | | 2025 | | | | | | |
| | | (in thousands) |
| Net income attributable to Boston Properties Limited Partnership | | $ | 114,799 | | | $ | 69,859 | | | | | | | |
| Add: | | | | | | | | | | |
| Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | | | | | |
| Net income | | 134,668 | | | 88,608 | | | | | | | |
| Add: | | | | | | | | | | |
| Depreciation and amortization | | 226,305 | | | 218,404 | | | | | | | |
| Noncontrolling interests in property partnerships’ share of depreciation and amortization | | (20,871) | | | (20,464) | | | | | | | |
| BXP’s share of depreciation and amortization from unconsolidated joint ventures | | 13,506 | | | 17,327 | | | | | | | |
| Corporate-related depreciation and amortization | | (567) | | | (716) | | | | | | | |
| Non-real estate depreciation and amortization | | 2,131 | | | 2,130 | | | | | | | |
| Loss on sales-type lease | | — | | | 2,490 | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Less: | | | | | | | | | | |
| Gain on sale / consolidation included within income (loss) from unconsolidated joint ventures | | 41,233 | | | — | | | | | | | |
| Gains on sales of real estate | | 13,402 | | | — | | | | | | | |
| | | | | | | | | | |
| Unrealized gain (loss) on non-real estate investments | | 188 | | | (483) | | | | | | | |
| Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | | | | | |
Funds from Operations attributable to Boston Properties Limited Partnership (1) | | $ | 280,480 | | | $ | 289,513 | | | | | | | |
| Weighted average shares outstanding—basic | | 176,318 | | | 175,752 | | | | | | | |
_______________
(1)Our calculation includes OP Units and vested LTIP Units (including vested 2012 OPP Units and vested 2013 - 2023 MYLTIP Units).
The following tables present a reconciliation of net income attributable to Boston Properties Limited Partnership to Diluted FFO attributable to Boston Properties Limited Partnership for income (numerator) and shares/units (denominator) for the three months ended March 31, 2026 and 2025:
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended March 31, | | |
| | | 2026 | | 2025 | | | | | | |
| | | (in thousands) |
| Net income attributable to Boston Properties Limited Partnership | | $ | 114,799 | | | $ | 69,859 | | | | | | | |
| Add: | | | | | | | | | | |
| Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | | | | | |
| Net income | | 134,668 | | | 88,608 | | | | | | | |
| Add: | | | | | | | | | | |
| Depreciation and amortization | | 226,305 | | | 218,404 | | | | | | | |
| Noncontrolling interests in property partnerships’ share of depreciation and amortization | | (20,871) | | | (20,464) | | | | | | | |
| BXP’s share of depreciation and amortization from unconsolidated joint ventures | | 13,506 | | | 17,327 | | | | | | | |
| Corporate-related depreciation and amortization | | (567) | | | (716) | | | | | | | |
| Non-real estate depreciation and amortization | | 2,131 | | | 2,130 | | | | | | | |
| Loss on sales-type lease | | — | | | 2,490 | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Less: | | | | | | | | | | |
| Gain on sale / consolidation included within income (loss) from unconsolidated joint ventures | | 41,233 | | | — | | | | | | | |
| Gains on sales of real estate | | 13,402 | | | — | | | | | | | |
| | | | | | | | | | |
| Unrealized gain (loss) on non-real estate investments | | 188 | | | (483) | | | | | | | |
| Noncontrolling interests in property partnerships | | 19,869 | | | 18,749 | | | | | | | |
Funds from Operations attributable to Boston Properties Limited Partnership (1) | | 280,480 | | | 289,513 | | | | | | | |
| Effect of Dilutive Securities: | | | | | | | | | | |
| Stock based compensation | | — | | | — | | | | | | | |
| Diluted Funds from Operations attributable to Boston Properties Limited Partnership | | $ | 280,480 | | | $ | 289,513 | | | | | | | |
_______________(1)Our calculation includes OP Units and vested LTIP Units (including vested 2012 OPP Units and vested 2013 - 2023 MYLTIP Units).
| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended March 31, | | |
| | | 2026 | | 2025 | | | | | | |
| | shares/units (in thousands) | | |
| Basic Funds from Operations | | 176,318 | | | 175,752 | | | | | | | |
| Effect of Dilutive Securities: | | | | | | | | | | |
| Stock based compensation | | 501 | | | 430 | | | | | | | |
| Diluted Funds from Operations | | 176,819 | | | 176,182 | | | | | | | |
Material Cash Commitments
We have various service contracts with vendors related to our property management. In addition, we enter into other contracts in the ordinary course of business that may extend beyond one year. These contracts include terms that provide for cancellation with insignificant or no cancellation penalties. Contract terms are generally between three and five years.
During the three months ended March 31, 2026, we paid approximately $105.5 million to fund tenant-related obligations, including tenant improvements and leasing commissions.
In addition, during the three months ended March 31, 2026, we and our unconsolidated joint venture partners incurred approximately $108.9 million of new tenant-related obligations associated with approximately 1.0 million square feet of second generation leases, or approximately $114 per square foot. During the three months ended
March 31, 2026, we signed approximately 194,800 square feet of first generation leases. The tenant-related obligations for the development properties are included within the projects’ “Estimated Total Investment” referred to in “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”