BXP (BXP) investor relations material

Strategic focus and growth plans

• Concentrates on premier workplaces in four major U.S. markets, with a clear strategy to lease space, sell non-core assets, and invest in new developments.

• Targets FFO per share growth by increasing occupancy, deleveraging the balance sheet, and enhancing portfolio quality in CBD locations.

• On track with asset sales, achieving $1.1 billion in net proceeds and aiming for $1.9 billion by 2028.

• Over 3 million sq ft under development, including major projects in New York and Washington, D.C.

• Leasing activity remains robust, with 600,000 sq ft leased this quarter and a strong pipeline.

Market performance and leasing trends

• Achieved 5.5 million sq ft of leasing in 2025, with significant activity in Manhattan, Northern Virginia, and San Francisco.

• Double-digit rental rate growth in Midtown Manhattan and Boston Back Bay; 5–10% growth in Northern Virginia.

• San Francisco leasing driven by AI companies, with over 6 million sq ft of net absorption attributed to AI sector growth.

• Leasing terms are lengthening, indicating tenant confidence in long-term space needs.

• Seattle and West L.A. show slower recovery but incremental positive activity.

Impact and opportunities from AI

• AI is viewed as a net positive, creating demand for front office and creative roles, especially in San Francisco.

• No negative impact from AI on leasing, asset sales, or credit spreads; AI companies are signing long-term leases.

• Internally, AI is being piloted to automate accounting, reduce costs, and streamline legal and lease processes.

• AI-related job creation and displacement trends align with the portfolio's focus on premier, client-facing workplaces.

• No AI-related concerns raised by equity or debt investors for new developments.