BXP (BXP) Q2 2026 earnings summary

Executive summary

• FFO per share for Q2 2026 was $1.78, exceeding guidance and consensus by $0.08, with the midpoint of 2026 FFO guidance raised by $0.05.

• Leasing activity was robust, with 1.8 million sq ft leased in Q2, 29% above the 10-year average; year-to-date leasing surpassed 3 million sq ft.

• Portfolio occupancy improved to 88.4% at June 30, 2026, with a leased percentage of 91.3%.

• Asset sales are ahead of schedule, with $370 million raised in 2026 and $1.2 billion since Investor Day; $1.7 billion in total sales expected by year-end.

• Revenue for the six months ended June 30, 2026 increased to $1.77 billion, up 2% year-over-year, driven by higher lease, parking, and other revenues.

Financial highlights

• Q2 2026 FFO was $1.78 per share, up from $1.72 in Q2 2025, and total revenue for Q2 was $895.7 million.

• Net operating income for the six months ended June 30, 2026 was $1.04 billion, up 1.8% year-over-year.

• Operating expenses were lower, contributing $0.04 per share in outperformance, with half from deferred repairs and maintenance.

• Interest expense decreased by $20.7 million for the six months, reflecting lower average debt balances and increased capitalized interest.

• Dividend per share for Q2 2026 was $0.70, consistent with prior quarters.

Outlook and guidance

• 2026 FFO guidance raised by $0.05 at midpoint to $6.99–$7.05 per share; average occupancy guidance for 2026 increased by 65 basis points to 88.9%.

• Same property NOI growth assumption for 2026 raised by 30 basis points to 1.8%–2.6%.

• Expectation to reach 91% occupancy by end of 2027, with potential to exceed if current trends persist.

• Management expects continued occupancy improvement and leasing momentum, supported by a strong pipeline of active negotiations and new leases scheduled to commence in 2026.

• Full-year 2026 EPS guidance: $2.14–$2.24.