BXP BXP Inc

Executed More Than 1.1 Million Square Feet of Leases in Q3

BXP, Inc. (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported results today for the third quarter ended September 30, 2024.

Financial Highlights

• Revenue increased 4.2% to $859.2 million for the quarter ended September 30, 2024, compared to $824.3 million for the quarter ended September 30, 2023.

• Net income (loss) attributable to BXP, Inc. of $83.6 million, or $0.53 per diluted share (EPS), for the quarter ended September 30, 2024, compared to $(111.8) million, or $(0.71) per diluted share, for the quarter ended September 30, 2023.

• EPS for the third quarter was less than the mid-point of BXP’s guidance, updated on August 15, 2024, by $0.01 per diluted share primarily due to $0.02 per share of greater than projected depreciation and amortization expense, partially offset by lower than projected general and administrative (“G&A”) expenses.

• Funds from Operations (FFO) of $286.9 million, or $1.81 per diluted share, for the quarter ended September 30, 2024, compared to FFO of $292.8 million, or $1.86 per diluted share, for the quarter ended September 30, 2023.

• FFO per diluted share for the third quarter was greater than the mid-point of BXP’s updated guidance by $0.01 per diluted share primarily due to lower than projected G&A expenses.

Guidance

BXP provided guidance for full year 2024 EPS of $2.05 - $2.07 and FFO of $7.09 - $7.11 per diluted share. The midpoint of the guidance for full year 2024 EPS represents a decrease of approximately $0.03 per share compared to the midpoint of BXP’s updated guidance and is primarily due to greater projected depreciation and amortization expense. The midpoint of the guidance range for full year 2024 FFO per diluted share is inline with BXP’s updated prior guidance.

See “EPS and FFO per Share Guidance” below.

Leasing & Occupancy

• Executed 74 leases totaling more than 1.1 million square feet with a weighted-average lease term of 7.2 years. A total of 3.3 million square feet of leasing was executed in the first three quarters of 2024, representing a 25% increase compared to the same period in 2023.

• BXP’s CBD portfolio of premier workplaces was 90.1% occupied and 92.1% leased (including vacant space for which we have signed leases that have not yet commenced in accordance with GAAP). Approximately 88.0% of BXP’s Share of annualized rental obligations is derived from clients located in our CBD portfolio, underscoring the strength of BXP’s strategy to invest in the highest quality buildings in dynamic urban gateway markets.

• BXP’s total portfolio occupancy for the third quarter was 87.0% and 89.1% leased (including vacant space for which we have signed leases that have not yet commenced in accordance with GAAP). Our total portfolio occupancy represents a decrease of 10 basis points over the prior quarter, consistent with BXP’s previously communicated expectations, and was primarily due to expected lease expirations.

Development

• BXP fully placed in-service 180 CityPoint, an approximately 329,000 square foot laboratory/life sciences project located in Waltham, Massachusetts.

• BXP partially placed in-service Skymark, a luxury residential property in Reston, Virginia that consists of 508 units across a five-story low-rise building and an iconic 39-story tower, which is one of the tallest buildings in Northern Virginia. The residential property is owned by a joint venture in which BXP has a 20% interest.

Balance Sheet & Liquidity

• A joint venture in which BXP has a 50% interest exercised an option to extend by one year the maturity date of its loan collateralized by 100 Causeway in Boston, Massachusetts. The 634,000 square foot premier workplace is 96.4% leased. The extended loan has an outstanding balance of $333.6 million and an interest rate equal to Term SOFR plus 1.48% per annum. The loan now matures on September 5, 2025.

• Boston Properties Limited Partnership (“BPLP”) completed a public offering of $850.0 million in aggregate principal amount of its 5.750% unsecured senior notes due 2035. The notes were priced at 99.961% of the principal amount to yield an effective rate (including financing fees) of approximately 5.842% per annum to maturity. The notes will mature on January 15, 2035, unless earlier redeemed. The aggregate net proceeds from the offering were approximately $841.9 million after deducting underwriting discounts and transaction expenses.

• BXP modified the mortgage loan collateralized by its Santa Monica Business Park properties located in Santa Monica, California. The mortgage loan had an outstanding principal balance of $300.0 million, bore interest at a variable rate equal to SOFR plus 1.38% per annum and was scheduled to mature on July 19, 2025. The modified loan reduced the outstanding principal amount to $200.0 million and extended the maturity date to October 8, 2028. The modified loan bears interest at a variable rate of SOFR plus 1.38% per annum until July 19, 2025, after which the loan will bear interest at a variable rate of SOFR plus 1.60% annum. In addition, as part of the refinancing, BPLP entered into a new $100.0 million unsecured term loan that bears interest at a variable rate of SOFR plus 1.05% and matures on September 26, 2025 with three one-year extension options (subject to customary conditions). The mortgage and unsecured term loans are subject to existing interest rate swaps fixing SOFR at a weighted-average fixed rate of approximately 2.679% per annum for a period that ends on April 1, 2025. Santa Monica Business Park is an office park consisting of 21 buildings totaling approximately 1.2 million net rentable square feet.

Sustainability & Impact

• BXP was named by TIME Magazine and Statista to the inaugural list of the World’s Most Sustainable Companies. BXP ranked #79 overall and was the highest-rated United States property owner.

• BXP was selected to receive a Sustainable Design Impact Award for 140 Kendrick Building A in Needham, Massachusetts—the first net-zero, carbon-neutral office repositioning of its scale in the Commonwealth of Massachusetts. The Sustainable Design Award is part of Nareit’s Sustainability Impact Awards and recognizes architecture and engineering strategies that reduce environmental impact through smart design, new development, or retrofitting.

EPS and FFO per Share Guidance:

BXP’s guidance for the full year 2024 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in this release and those referenced during the related conference call. The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may fluctuate as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.

 

 

Full Year 2024

 

 

Low

 

High

Projected EPS (diluted)

 

$

2.05

 

 

$

2.07

 

Add:

 

 

 

 

Projected Company share of real estate depreciation and amortization

 

 

5.09

 

 

 

5.09

 

Projected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments

 

 

(0.05

)

 

 

(0.05

)

Projected FFO per share (diluted)

 

$

7.09

 

 

$

7.11

 

The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter ended September 30, 2024. In the opinion of management, BXP has made all adjustments considered necessary for a fair statement of these reported results.

BXP will host a conference call on Wednesday, October 30, 2024 at 10:00 AM Eastern Time, open to the general public, to discuss the third quarter 2024 results, provide a business update, and discuss other business matters that may be of interest to investors. Participants who would like to join the call and ask a question may register at https://register.vevent.com/register/BI1fc7a411c96548e894372c76c917619c to receive the dial-in numbers and unique PIN to access the call. There will also be a live audio, listen-only webcast of the call, which may be accessed in the Investors section of BXP’s website at https://investors.bxp.com/events-webcasts. Shortly after the call, a replay of the call will be available on BXP’s website at https://investors.bxp.com/events-webcasts for up to twelve months following the call.

Additionally, a copy of BXP’s third quarter 2024 “Supplemental Operating and Financial Data” and this press release are available in the Investors section of BXP’s website at investors.bxp.com.

BXP, Inc. (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by unconsolidated joint ventures, BXP’s portfolio totals 53.0 million square feet and 184 properties, including 9 properties under construction/redevelopment. For more information about BXP, please visit our website or follow us on LinkedIn or Instagram.

This press release includes references to “BXP’s Share of annualized rental obligations.” We define rental obligations as the contractual base rents (but excluding percentage rent) and budgeted reimbursements from clients under existing leases. These amounts exclude rent abatements. Further, "annualized rental obligations" is defined as monthly rental obligations, as of the last day of the reporting period, multiplied by twelve (12). "BXP's Share" is based on annualized rental obligations for our consolidated portfolio, plus our share of annualized rental obligations from the unconsolidated joint ventures properties (calculated based on our ownership percentage), minus our partners' share of annualized rental obligations from our consolidated joint venture properties (calculated based on our partners' percentage ownership interests). Our definitions of the foregoing operating metrics may be different than those used by other companies.

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will,” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond BXP’s control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to the impact of changes in general economic and capital market conditions, including continued inflation, high interest rates, supply chain disruptions, labor market disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the U.S. or global economy, general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on favorable terms, changes in client preferences and space utilization, dependence on clients’ financial condition, and competition from other developers, owners and operators of real estate), the impact of geopolitical conflicts, the immediate and long-term impact of the outbreak of a highly infectious or contagious disease, on our and our clients’ financial condition, results of operations and cash flows (including the impact of actions taken to contain the outbreak or mitigate its impact, the direct and indirect economic effects of the outbreak and containment measures on our clients, and the ability of our clients to successfully operate their businesses), the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on BXP’s accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes (including costs to comply with the Securities and Exchange Commission’s and the State of California’s rules to standardize climate-related disclosures) and other risks and uncertainties detailed from time to time in BXP’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance, or achievements. BXP does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as otherwise required by law.

Financial tables follow.

 

BXP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

September 30, 2024

 

December 31, 2023

 

(in thousands, except for share and par value amounts)

ASSETS

 

 

 

Real estate, at cost

$

26,054,928

 

 

$

25,504,868

 

Construction in progress

 

812,122

 

 

 

547,280

 

Land held for future development

 

690,774

 

 

 

697,061

 

Right of use assets - finance leases

 

372,896

 

 

 

401,680

 

Right of use assets - operating leases

 

339,804

 

 

 

324,298

 

Less: accumulated depreciation

 

(7,369,545

)

 

 

(6,881,728

)

Total real estate

 

20,900,979

 

 

 

20,593,459

 

Cash and cash equivalents

 

1,420,475

 

 

 

1,531,477

 

Cash held in escrows

 

51,009

 

 

 

81,090

 

Investments in securities

 

39,186

 

 

 

36,337

 

Tenant and other receivables, net

 

99,706

 

 

 

122,407

 

Note receivable, net

 

3,937

 

 

 

1,714

 

Related party note receivables, net

 

88,788

 

 

 

88,779

 

Sales-type lease receivable, net

 

14,429

 

 

 

13,704

 

Accrued rental income, net

 

1,438,492

 

 

 

1,355,212

 

Deferred charges, net

 

794,571

 

 

 

760,421

 

Prepaid expenses and other assets

 

132,078

 

 

 

64,230

 

Investments in unconsolidated joint ventures

 

1,421,886

 

 

 

1,377,319

 

Total assets

$

26,405,536

 

 

$

26,026,149

 

LIABILITIES AND EQUITY

 

 

 

Liabilities:

 

 

 

Mortgage notes payable, net

$

4,275,155

 

 

$

4,166,379

 

Unsecured senior notes, net

 

10,642,033

 

 

 

10,491,617

 

Unsecured line of credit

 

—

 

 

 

—

 

Unsecured term loans, net

 

798,058

 

 

 

1,198,301

 

Unsecured commercial paper

 

500,000

 

 

 

—

 

Lease liabilities - finance leases

 

373,260

 

 

 

417,961

 

Lease liabilities - operating leases

 

389,444

 

 

 

350,391

 

Accounts payable and accrued expenses

 

444,288

 

 

 

458,329

 

Dividends and distributions payable

 

172,191

 

 

 

171,176

 

Accrued interest payable

 

121,360

 

 

 

133,684

 

Other liabilities

 

407,441

 

 

 

445,947

 

Total liabilities

 

18,123,230

 

 

 

17,833,785

 

 

 

 

 

Commitments and contingencies

 

—

 

 

 

—

 

Redeemable deferred stock units

 

10,696

 

 

 

8,383

 

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, 158,058,798 and 157,019,766 issued and 157,979,898 and 156,940,866 outstanding at September 30, 2024 and December 31, 2023, respectively

 

1,580

 

 

 

1,569

 

Additional paid-in capital

 

6,822,489

 

 

 

6,715,149

 

Dividends in excess of earnings

 

(1,035,710

)

 

 

(816,152

)

Treasury common stock at cost, 78,900 shares at September 30, 2024 and December 31, 2023

 

(2,722

)

 

 

(2,722

)

Accumulated other comprehensive loss

 

(26,428

)

 

 

(21,147

)

Total stockholders’ equity attributable to BXP, Inc.

 

5,759,209

 

 

 

5,876,697

 

Noncontrolling interests:

 

 

 

Common units of the Operating Partnership

 

638,129

 

 

 

666,580

 

Property partnerships

 

1,874,272

 

 

 

1,640,704

 

Total equity

 

8,271,610

 

 

 

8,183,981

 

Total liabilities and equity

$

26,405,536

 

 

$

26,026,149

 

 

BXP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

(in thousands, except for per share amounts)

Revenue

 

 

 

 

 

 

 

 

Lease

 

$

799,471

 

 

$

767,181

 

 

$

2,378,616

 

 

$

2,285,789

 

Parking and other

 

 

34,255

 

 

 

30,428

 

 

 

101,086

 

 

 

81,421

 

Hotel

 

 

15,082

 

 

 

13,484

 

 

 

38,080

 

 

 

35,554

 

Development and management services

 

 

6,770

 

 

 

9,284

 

 

 

19,276

 

 

 

28,122

 

Direct reimbursements of payroll and related costs from management services contracts

 

 

3,649

 

 

 

3,906

 

 

 

12,090

 

 

 

13,750

 

Total revenue

 

 

859,227

 

 

 

824,283

 

 

 

2,549,148

 

 

 

2,444,636

 

Expenses

 

 

 

 

 

 

 

 

Operating

 

 

 

 

 

 

 

 

Rental

 

 

327,897

 

 

 

300,192

 

 

 

963,480

 

 

 

882,536

 

Hotel

 

 

9,833

 

 

 

9,020

 

 

 

25,687

 

 

 

23,852

 

General and administrative

 

 

33,352

 

 

 

31,410

 

 

 

127,479

 

 

 

131,387

 

Payroll and related costs from management services contracts

 

 

3,649

 

 

 

3,906

 

 

 

12,090

 

 

 

13,750

 

Transaction costs

 

 

188

 

 

 

751

 

 

 

890

 

 

 

1,970

 

Depreciation and amortization

 

 

222,890

 

 

 

207,435

 

 

 

661,148

 

 

 

618,746

 

Total expenses

 

 

597,809

 

 

 

552,714

 

 

 

1,790,774

 

 

 

1,672,241

 

Other income (expense)

 

 

 

 

 

 

 

 

Income (loss) from unconsolidated joint ventures

 

 

(7,011

)

 

 

(247,556

)

 

 

6,376

 

 

 

(261,793

)

Gains on sales of real estate

 

 

517

 

 

 

517

 

 

 

517

 

 

 

517

 

Interest and other income (loss)

 

 

14,430

 

 

 

20,715

 

 

 

39,747

 

 

 

48,999

 

Gains (losses) from investments in securities

 

 

2,198

 

 

 

(925

)

 

 

4,785

 

 

 

2,311

 

Unrealized gain (loss) on non-real estate investment

 

 

94

 

 

 

(51

)

 

 

548

 

 

 

332

 

Impairment loss

 

 

—

 

 

 

—

 

 

 

(13,615

)

 

 

—

 

Interest expense

 

 

(163,194

)

 

 

(147,812

)

 

 

(474,727

)

 

 

(424,492

)

Net income (loss)

 

 

108,452

 

 

 

(103,543

)

 

 

322,005

 

 

 

138,269

 

Net (income) loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 

Noncontrolling interests in property partnerships

 

 

(15,237

)

 

 

(20,909

)

 

 

(50,283

)

 

 

(59,337

)

Noncontrolling interest—common units of the Operating Partnership

 

 

(9,587

)

 

 

12,626

 

 

 

(28,596

)

 

 

(8,642

)

Net income (loss) attributable to BXP, Inc.

 

$

83,628

 

 

$

(111,826

)

 

$

243,126

 

 

$

70,290

 

Basic earnings per common share attributable to BXP, Inc.

 

 

 

 

 

 

 

 

Net income (loss)

 

$

0.53

 

 

$

(0.71

)

 

$

1.55

 

 

$

0.45

 

Weighted average number of common shares outstanding

 

 

157,725

 

 

 

156,880

 

 

 

157,250

 

 

 

156,837

 

Diluted earnings per common share attributable to BXP, Inc.

 

 

 

 

 

 

 

 

Net income (loss)

 

$

0.53

 

 

$

(0.71

)

 

$

1.54

 

 

$

0.45

 

Weighted average number of common and common equivalent shares outstanding

 

 

158,213

 

 

 

156,880

 

 

 

157,547

 

 

 

157,177

 

 

BXP, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(in thousands, except for per share amounts)

Net income (loss) attributable to BXP, Inc.

$

83,628

 

 

$

(111,826

)

 

$

243,126

 

 

$

70,290

 

Add:

 

 

 

 

 

 

 

Noncontrolling interest - common units of the Operating Partnership

 

9,587

 

 

 

(12,626

)

 

 

28,596

 

 

 

8,642

 

Noncontrolling interests in property partnerships

 

15,237

 

 

 

20,909

 

 

 

50,283

 

 

 

59,337

 

Net income (loss)

 

108,452

 

 

 

(103,543

)

 

 

322,005

 

 

 

138,269

 

Add:

 

 

 

 

 

 

 

Depreciation and amortization expense

 

222,890

 

 

 

207,435

 

 

 

661,148

 

 

 

618,746

 

Noncontrolling interests in property partnerships’ share of depreciation and amortization

 

(18,857

)

 

 

(18,174

)

 

 

(56,755

)

 

 

(53,743

)

Company’s share of depreciation and amortization from unconsolidated joint ventures

 

20,757

 

 

 

25,666

 

 

 

60,807

 

 

 

77,067

 

Corporate-related depreciation and amortization

 

(438

)

 

 

(446

)

 

 

(1,263

)

 

 

(1,357

)

Non-real estate related amortization

 

2,130

 

 

 

—

 

 

 

6,390

 

 

 

—

 

Impairment losses

 

—

 

 

 

—

 

 

 

13,615

 

 

 

—

 

Impairment losses included within Income (loss) from unconsolidated joint ventures

 

—

 

 

 

272,603

 

 

 

—

 

 

 

272,603

 

Less:

 

 

 

 

 

 

 

Gains on sales of real estate

 

517

 

 

 

517

 

 

 

517

 

 

 

517

 

Gain on sale / consolidation included within income (loss) from unconsolidated joint ventures

 

—

 

 

 

—

 

 

 

21,696

 

 

 

—

 

Gain on investment included within income (loss) from unconsolidated joint ventures

 

—

 

 

 

35,756

 

 

 

—

 

 

 

35,756

 

Unrealized gain (loss) on non-real estate investment

 

94

 

 

 

(51

)

 

 

548

 

 

 

332

 

Noncontrolling interests in property partnerships

 

15,237

 

 

 

20,909

 

 

 

50,283

 

 

 

59,337

 

Funds from operations (FFO) attributable to the Operating Partnership (including BXP, Inc.)

 

319,086

 

 

 

326,410

 

 

 

932,903

 

 

 

955,643

 

Less:

 

 

 

 

 

 

 

Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations

 

32,228

 

 

 

33,588

 

 

 

96,369

 

 

 

98,049

 

Funds from operations attributable to BXP, Inc.

$

286,858

 

 

$

292,822

 

 

$

836,534

 

 

$

857,594

 

BXP, Inc.’s percentage share of funds from operations - basic

 

89.90

%

 

 

89.71

%

 

 

89.67

%

 

 

89.74

%

Weighted average shares outstanding - basic

 

157,725

 

 

 

156,880

 

 

 

157,250

 

 

 

156,837

 

FFO per share basic

$

1.82

 

 

$

1.87

 

 

$

5.32

 

 

$

5.47

 

Weighted average shares outstanding - diluted

 

158,213

 

 

 

156,880

 

 

 

157,547

 

 

 

157,177

 

FFO per share diluted

$

1.81

 

 

$

1.86

 

 

$

5.31

 

 

$

5.46

 

(1)

Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to BXP, Inc. (computed in accordance with GAAP) 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 real estate-related depreciation and amortization. FFO is a non-GAAP financial measure, but we believe the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures 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 and FFO per share 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 calculation 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.

 

 

 

In order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to BXP, Inc. as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to BXP, Inc. (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

 

BXP, INC.

PORTFOLIO LEASING PERCENTAGES

 

CBD Portfolio

% Occupied by Location (1)

 

% Leased by Location (2)

 

September 30, 2024

 

December 31, 2023

 

September 30, 2024

 

December 31, 2023

Boston

95.7 %

 

95.9 %

 

97.1 %

 

96.4 %

Los Angeles

84.9 %

 

85.9 %

 

86.3 %

 

88.1 %

New York

88.9 %

 

91.8 %

 

92.6 %

 

94.4 %

San Francisco

84.2 %

 

87.4 %

 

84.5 %

 

88.0 %

Seattle

80.2 %

 

81.8 %

 

83.0 %

 

83.1 %

Washington, DC (3)

91.4 %

 

89.2 %

 

93.5 %

 

92.3 %

CBD Portfolio

90.1 %

 

91.0 %

 

92.1 %

 

92.7 %

Total Portfolio

% Occupied by Location (1)

 

% Leased by Location (2)

 

September 30, 2024

 

December 31, 2023

 

September 30, 2024

 

December 31, 2023

Boston

90.1 %

 

89.9 %

 

91.7 %

 

90.3 %

Los Angeles

84.9 %

 

85.9 %

 

86.3 %

 

88.1 %

New York

85.1 %

 

90.1 %

 

89.2 %

 

92.4 %

San Francisco

80.9 %

 

84.9 %

 

81.2 %

 

85.5 %

Seattle

80.2 %

 

81.8 %

 

83.0 %

 

83.1 %

Washington, DC

91.2 %

 

88.0 %

 

93.2 %

 

91.0 %

Total Portfolio

87.0 %

 

88.4 %

 

89.1 %

 

89.9 %

(1)

Represents signed leases for which revenue recognition has commenced in accordance with GAAP.

(2)

Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates.

(3)

During the first quarter of 2024, the Company reassessed the classifications of its assets as either CBD or Suburban and determined that certain assets such as those in Reston, Virginia are located in areas with characteristics that more closely align with our definition of CBD due to their diverse live, work, and play environment. As a result, these assets are classified as CBD. Comparative period has been updated to reflect the same presentation.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029112287/en/

AT BXP Michael LaBelle Executive Vice President, Chief Financial Officer and Treasurer mlabelle@bxp.com

Helen Han Vice President, Investor Relations hhan@bxp.com