BXP (BXP) Q3 2024 earnings summary

Executive summary

• Largest publicly traded developer, owner, and manager of premier workplaces in the U.S., with 184 properties totaling 53M sq. ft. across six major markets as of Q3 2024.

• Q3 2024 net income attributable to BXP, Inc. was $83.6M, up from $79.6M in Q2 2024 and up 246% year-over-year for the nine months ended September 30, 2024.

• Portfolio occupancy was 87.0% and 89.1% leased for in-service properties at quarter-end; CBD portfolio 90.1% occupied and 92.1% leased.

• Leasing activity accelerated, with 3.3M sq. ft. signed YTD, up 25% over the prior year; weighted-average lease term is 7.5 years.

• Premier workplace and life sciences development pipeline is 54% pre-leased, with 2.7M sq. ft. under construction/redevelopment.

Financial highlights

• Q3 2024 FFO per share was $1.81, with full-year guidance at $7.09–$7.11 per share; diluted EPS guidance is $2.05–$2.07.

• Total revenue for Q3 2024 was $859.2M, up from $850.5M in Q2 2024; nine-month revenue was $2.55B, up from $2.44B year-over-year.

• NOI for the nine months ended September 30, 2024 was $1.53B, up 2.2% year-over-year.

• Dividend per share was $0.98 in Q3 2024, with a FAD payout ratio of 76–78.86%.

• Net debt to EBITDAre was 7.6x at Q3 2024; consolidated debt to market capitalization was 53.4%.

Outlook and guidance

• Full-year 2024 FFO per share guidance is $7.09–$7.11; EPS guidance is $2.05–$2.07.

• Management expects continued tailwinds from improving corporate earnings, return-to-office trends, and outperformance of premier workplaces.

• Average in-service portfolio occupancy expected to range from 87.0% to 88.2% for 2024.

• Development pipeline remains robust, with $1.1B of $2.2B estimated total investment remaining to be funded through 2029.

• Company is in active negotiations for three land dispositions, potentially generating $70M in proceeds in 2025.