BXP (BXP) investor relations material

Executive summary

• Portfolio comprised 164 properties totaling 50.4M sq. ft. as of March 31, 2026, with 87.4% occupancy and 90.9% leased; strong leasing momentum with 1.1M SF signed in Q1 2026, up ~3% year-over-year.

• FFO per share for Q1 2026 exceeded internal estimates by $0.02, with full-year FFO guidance raised by $0.01 per share; Q1 2026 FFO per diluted share was $1.59.

• Strong leasing activity driven by AI and tech sector demand, especially in San Francisco and New York; CBD assets are 93.6% leased, representing ~90% of annualized rental obligations.

• Asset sales generated $360 million in Q1 and $1.2 billion since the last investor conference, as part of a $1.9B multi-year asset sales strategy.

• Dividend of $0.70 per share was maintained, yielding 5.4% at quarter-end price of $51.90.

Financial highlights

• Q1 2026 FFO was $1.59 per share, $0.02 above guidance midpoint and $0.01 above consensus; annualized revenue (BXP's share) was $3.3B.

• Funds available for distribution in trailing four quarters: $628.5M; FAD payout ratio rose to 140.25% from 92.09% sequentially.

• Operating margins were 59.5%, with consolidated debt at $15.6B and market capitalization at $24.8B.

• Net interest expense increased due to lower interest income and higher commercial paper rates.

• Dividend yield: 5.4% as of March 31, 2026.

Outlook and guidance

• Full-year 2026 FFO per share guidance is $6.90–$7.04; diluted EPS guidance is $2.15–$2.29.

• Occupancy outlook for 2026 increased by 25 bps to an average of 88.25%; average in-service portfolio occupancy expected at 87.75–88.75%.

• Same property NOI growth assumption for 2026 raised to 1.4%–2.4%; projected to change between -0.25% and 1.40% for the year (excluding termination income).

• Leasing pipeline of 3.1M SF supports continued occupancy gains through 2026 and acceleration into 2027.

• Limited near-term lease expirations: 1.7% of portfolio in 2026 and 4.3% in 2027.