Adelante Capital Management ve 2. čtvrtletí nově koupila 84 018 akcií BXP za zhruba 5,571 milionu USD. Akcie BXP zároveň zahájily obchodování níže o 2,4 %.
Adelante Capital Management LLC acquired a new stake in BXP, Inc. (NYSE:BXP – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 84,018 shares of the real estate investment trust’s stock, valued at approximately $5,571,000. Adelante Capital Management LLC owned about 0.05% of BXP at the end of the most recent reporting period.
A number of other hedge funds have also recently added to or reduced their stakes in the stock. Corient Private Wealth LP acquired a new stake in shares of BXP during the second quarter valued at about $2,728,000. Palogic Value Management L.P. acquired a new position in shares of BXP in the second quarter valued at approximately $848,000. Bamco Inc. NY bought a new position in BXP in the 2nd quarter valued at approximately $20,725,000. Bank of America Corp DE bought a new position in BXP in the 2nd quarter valued at approximately $186,471,000. Finally, Jupiter Topco LLC acquired a new stake in BXP during the 2nd quarter worth approximately $4,636,000. Institutional investors and hedge funds own 98.72% of the company’s stock.
BXP Stock Down 2.4% Shares of NYSE:BXP opened at $70.42 on Thursday. The firm has a fifty day moving average price of $68.24 and a two-hundred day moving average price of $61.59. The company has a market cap of $11.24 billion, a price-to-earnings ratio of 37.86, a PEG ratio of 2.69 and a beta of 1.01. The company has a debt-to-equity ratio of 2.07, a current ratio of 3.91 and a quick ratio of 3.91. BXP, Inc. has a one year low of $49.72 and a one year high of $79.33.
BXP (NYSE:BXP – Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.03. BXP had a return on equity of 3.88% and a net margin of 8.44%.The company had revenue of $895.70 million during the quarter, compared to analyst estimates of $858.07 million. During the same quarter last year, the company earned $1.71 earnings per share. The firm’s quarterly revenue was up 3.1% on a year-over-year basis. BXP has set its FY 2026 guidance at 6.990-7.050 EPS and its Q3 2026 guidance at 1.800-1.820 EPS. Analysts anticipate that BXP, Inc. will post 7.03 EPS for the current fiscal year. BXP Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, June 30th were issued a dividend of $0.70 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $2.80 annualized dividend and a dividend yield of 4.0%. BXP’s dividend payout ratio (DPR) is currently 150.54%.
Analysts Set New Price Targets A number of analysts recently weighed in on the company. JPMorgan Chase & Co. increased their price objective on BXP from $79.00 to $87.00 and gave the company an “overweight” rating in a report on Tuesday. Cantor Fitzgerald reduced their price target on BXP from $79.00 to $70.00 and set an “overweight” rating on the stock in a research report on Friday, May 15th. LADENBURG THALM/SH SH increased their price target on BXP from $70.00 to $80.00 and gave the company a “buy” rating in a research note on Wednesday, July 8th. Piper Sandler increased their price objective on shares of BXP from $75.00 to $86.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 21st. Finally, Weiss Ratings upgraded BXP from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 8th. Eleven investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, BXP currently has a consensus rating of “Moderate Buy” and an average price target of $74.68.
Get Our Latest Analysis on BXP
Insider Activity at BXP In related news, CFO Michael E. Labelle sold 26,113 shares of the stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $66.35, for a total transaction of $1,732,597.55. Following the completion of the sale, the chief financial officer directly owned 5,839 shares in the company, valued at $387,417.65. This represents a 81.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 1.50% of the company’s stock.
BXP Company Profile (Free Report)
Boston Properties, Inc (NYSE: BXP) is a publicly traded real estate investment trust (REIT) specializing in the ownership, management, and development of Class A office properties across major U.S. markets. Headquartered in Boston, Massachusetts, the company’s portfolio comprises high-quality office buildings, mixed-use developments and select retail assets designed to serve leading corporations in key metropolitan areas.
Established in 1970 by Mortimer B. Zuckerman, Boston Properties has grown through disciplined acquisitions and strategic ground-up developments.
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A month has gone by since the last earnings report for Boston Properties (BXP - Free Report) . Shares have lost about 3.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Boston Properties due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
BXP Q2 FFO & Revenues Beat Estimates on Occupancy Gains, '26 View UpBXP reported second-quarter 2026 FFO of $1.78 per share, beating the Zacks Consensus Estimate of $1.71. FFO rose 4.1% from the year-ago period.
Results reflected higher occupancy and same-property NOI growth, which supported the FFO beat. Total portfolio occupancy climbed 100 basis points sequentially to 88.4%.
Lease revenues increased 3.2% year over year to $831.68 million and surpassed the consensus mark of $812.49 million. Total revenues increased 3.1% from the prior-year quarter to $895.7 million.
BXP’s Second Quarter in DetailBXP’s rental revenues (excluding termination income) for the office portfolio came in at $839.23 million, which rose 3.3% year over year. For the hotel & residential segment, the metric aggregated $18.58 million, indicating a 2.5% increase year over year. On a consolidated basis, BXP’s rental revenues (excluding termination income) came in at $857.82 million, up 3.3% year over year.
BXP's share of same-property NOI, excluding termination income, increased 3.5% year over year to $486.81 million. On a cash basis, the metric improved marginally to $454.97 million.
BXP Posts Strong Leasing VolumeThe office REIT executed 106 leases covering approximately 1.8 million square feet, with a weighted-average lease term of 9.9 years. The leasing volume equaled about 129% of BXP's historical 10-year second-quarter average.
Notable commitments included an approximately 148,000-square-foot lease with McDermott Will & Schulte at 343 Madison Avenue. That agreement lifted the project's pre-leased level to 50%. Boston Dynamics also signed an approximately 322,000-square-foot lease at Reservoir Place in Waltham, MA.
BXP Expands Occupancy and Future CommencementsThe total portfolio leased rate reached 91.3%, up 40 basis points from the first quarter. The 290-basis-point spread between leased and occupied space represented approximately 1.3 million square feet of future commencements, with about 85% expected before the end of 2026.
The CBD portfolio was 90.7% occupied and 93.6% leased. About 91% of BXP's share of annualized rental obligations came from clients in these urban properties. The addition of the fully occupied 290 Binney Street property contributed to the quarterly occupancy gain, though most of the improvement came from the existing portfolio.
BXP Advances Development PipelineBXP fully placed 290 Binney Street in Cambridge, MA, in service during the quarter. The 572,578-square-foot laboratory and life sciences property is fully leased to AstraZeneca.
The company also began redeveloping the approximately 363,000-square-foot Reservoir Place building, which is 89% pre-leased to Boston Dynamics. Separately, BXP formed a joint venture to develop a 359-unit multifamily project in Herndon, VA, retaining a 20% ownership interest and serving as development manager.
BXP Bolsters Project FinancingOn July 28, BXP closed a $1.2 billion construction loan for 343 Madison Avenue. The facility carries a four-year initial term and a one-year extension option. Its initial rate is Term SOFR plus 2.50%, declining to Term SOFR plus 2.25% after specified leasing and construction milestones.
Cash and cash equivalents were $493.95 million as of June 30, 2026, compared with $512.78 million as of March 31, 2026.
The company reported an annualized BXP’s share net debt-to-EBITDA ratio of 7.94, down from 8.50 as of March 31, 2026.
BXP Raises Full-Year FFO OutlookManagement projected third-quarter FFO of $1.80-$1.82 per share. BXP raised the midpoint of its full-year 2026 FFO guidance by 5 cents to a range of $6.99-$7.05, citing better-than-projected portfolio performance.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
VGM ScoresCurrently, Boston Properties has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Boston Properties has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerBoston Properties belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Welltower (WELL - Free Report) , has gained 0.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Welltower reported revenues of $3.54 billion in the last reported quarter, representing a year-over-year change of +39.1%. EPS of $0.61 for the same period compares with $1.28 a year ago.
Welltower is expected to post earnings of $1.64 per share for the current quarter, representing a year-over-year change of +22.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Welltower. Also, the stock has a VGM Score of D.
BXP od 20 analytických firem získala průměrné doporučení „Moderate Buy“. Společnost zároveň oznámila zisk na akcii 0,43 USD a tržby 895,7 milionu USD za čtvrtletí.
BXP, Inc. (NYSE:BXP – Get Free Report) has earned an average rating of “Moderate Buy” from the twenty brokerages that are presently covering the company, Marketbeat reports. Nine research analysts have rated the stock with a hold recommendation and eleven have given a buy recommendation to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $74.5789.
A number of research firms recently issued reports on BXP. Truist Financial dropped their target price on shares of BXP from $70.00 to $64.00 and set a “hold” rating for the company in a research report on Tuesday, May 26th. Citigroup increased their price objective on shares of BXP from $58.00 to $69.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 4th. Weiss Ratings upgraded shares of BXP from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of BXP in a research report on Wednesday, August 12th. Finally, Evercore set a $68.00 price objective on BXP in a research report on Monday, July 6th.
View Our Latest Analysis on BXP
Insider Transactions at BXP In other news, CFO Michael E. Labelle sold 26,113 shares of BXP stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $66.35, for a total transaction of $1,732,597.55. Following the sale, the chief financial officer owned 5,839 shares in the company, valued at $387,417.65. This trade represents a 81.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.50% of the stock is owned by company insiders. Institutional Trading of BXP Hedge funds and other institutional investors have recently modified their holdings of the business. Rehmann Capital Advisory Group grew its stake in shares of BXP by 4.3% in the 2nd quarter. Rehmann Capital Advisory Group now owns 4,280 shares of the real estate investment trust’s stock valued at $284,000 after purchasing an additional 175 shares during the period. Keybank National Association OH lifted its position in shares of BXP by 5.4% during the 4th quarter. Keybank National Association OH now owns 3,578 shares of the real estate investment trust’s stock worth $241,000 after buying an additional 183 shares during the period. State of Wyoming lifted its position in shares of BXP by 45.5% during the 4th quarter. State of Wyoming now owns 617 shares of the real estate investment trust’s stock worth $42,000 after buying an additional 193 shares during the period. Minot DeBlois Advisors LLC boosted its stake in BXP by 2.5% in the 4th quarter. Minot DeBlois Advisors LLC now owns 7,902 shares of the real estate investment trust’s stock valued at $533,000 after buying an additional 196 shares in the last quarter. Finally, Rexford Capital Inc. boosted its stake in BXP by 11.9% in the 4th quarter. Rexford Capital Inc. now owns 1,876 shares of the real estate investment trust’s stock valued at $127,000 after buying an additional 200 shares in the last quarter. 98.72% of the stock is owned by hedge funds and other institutional investors.
BXP Stock Up 1.0% Shares of NYSE BXP opened at $67.86 on Friday. The stock has a market capitalization of $10.83 billion, a PE ratio of 36.48, a P/E/G ratio of 2.51 and a beta of 1.01. The company has a quick ratio of 3.91, a current ratio of 3.91 and a debt-to-equity ratio of 2.07. The firm has a fifty day moving average of $67.85 and a 200-day moving average of $61.40. BXP has a 52-week low of $49.72 and a 52-week high of $79.33.
BXP (NYSE:BXP – Get Free Report) last issued its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.03. The firm had revenue of $895.70 million for the quarter, compared to analysts’ expectations of $858.07 million. BXP had a return on equity of 3.88% and a net margin of 8.44%.The firm’s revenue for the quarter was up 3.1% compared to the same quarter last year. During the same quarter last year, the firm earned $1.71 earnings per share. BXP has set its FY 2026 guidance at 6.990-7.050 EPS and its Q3 2026 guidance at 1.800-1.820 EPS. On average, analysts anticipate that BXP will post 7.03 EPS for the current year.
BXP Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, June 30th were given a dividend of $0.70 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $2.80 annualized dividend and a yield of 4.1%. BXP’s payout ratio is 150.54%.
BXP Company Profile (Get Free Report)
Boston Properties, Inc (NYSE: BXP) is a publicly traded real estate investment trust (REIT) specializing in the ownership, management, and development of Class A office properties across major U.S. markets. Headquartered in Boston, Massachusetts, the company’s portfolio comprises high-quality office buildings, mixed-use developments and select retail assets designed to serve leading corporations in key metropolitan areas.
Established in 1970 by Mortimer B. Zuckerman, Boston Properties has grown through disciplined acquisitions and strategic ground-up developments.
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BXP uzavřela úvěr za 1,2 miliardy USD na projekt 343 Madison, čímž snížila očekávané budoucí vlastní financování na zhruba 341 milionů USD. Projekt je nyní asi z 50 % předpronajatý.
Key Takeaways BXP closed a $1.2 billion loan for 343 Madison, advancing funding for its roughly $2 billion project.BXP cut expected future equity spending on 343 Madison to about $341 million after the loan closed.BXP still needs more leasing and timely construction to achieve its targeted 7.5%-8% stabilized return. BXP, Inc. (BXP - Free Report) closed a $1.2 billion construction loan for 343 Madison Avenue on July 28, advancing the capitalization of its roughly $2 billion Midtown Manhattan development. The project is targeted for late-2029 delivery.
The financing reduces part of the project's funding uncertainty, but the investment case still depends on leasing, construction progress and eventual stabilization over the next several years.
BXP Locks in Major Project FinancingThe facility represents 60% loan-to-cost financing and carries a four-year initial term plus a one-year extension option. Its initial rate is Term SOFR plus 2.50%, declining to SOFR plus 2.25% after specified leasing and construction milestones.
That structure gives BXP committed project financing while linking a lower borrowing spread to execution. The loan supports construction of the approximately 930,000-square-foot development and marks a major capitalization step for the project.
BXP Reduces Its Remaining Equity CommitmentClosing the loan reduced BXP's expected future equity spending on 343 Madison to about $341 million. That lowers the amount of additional company capital required for what management described as BXP's largest development underway.
The financing also fits BXP's broader capital strategy. The company is using project financing, asset sales and other funding sources while pursuing a lower leverage objective and continuing to fund development commitments.
BXP Still Needs More Leasing at 343 Madison343 Madison was about 50% pre-leased, helped by an approximately 148,000-square-foot commitment from McDermott Will & Schulte. Management also indicated negotiations were underway for another 18% of the building, leaving future leasing as a key execution measure.
SL Green Realty Corp. (SLG - Free Report) , Manhattan's largest office landlord, provides a useful read-through on demand for high-quality New York office space. Vornado Realty Trust (VNO - Free Report) , which owns and operates nearly 20 million square feet of prime office properties, offers another relevant gauge of Manhattan leasing conditions.
Shares of BXP have risen 13.4% over the past three months, which underperformed both SLG and VNO.
Image Source: Zacks Investment Research
BXP Targets Attractive Returns From the ProjectManagement expects a 7.5%-8% stabilized return on cost for 343 Madison. The project is scheduled for late-2029 delivery, so achieving that return will depend on construction staying on track and additional leasing being completed on acceptable economics.
The construction loan materially advances the funding plan but does not remove development risk. Leasing milestones can improve revenue visibility, while delays, cost pressure or slower absorption could affect the timing and level of returns before stabilization.
BXP's Broader Pipeline Raises the Stakes343 Madison sits within an active development and redevelopment pipeline spanning about 3.5 million square feet and $3.2 billion of BXP investment. About $2.1 billion remained to be spent, while the office portion was 65% leased.
Together with recently delivered assets that are not yet stabilized, the pipeline is projected to contribute about $310 million to BXP's share of cash net operating income upon stabilization. That makes execution across the portfolio an important long-term earnings driver.
BXP's Mixed Scores Keep Expectations BalancedThe $1.2 billion loan meaningfully reduces funding uncertainty at 343 Madison, but the event is one step in a multi-year development process. Investors still have to weigh remaining equity needs, lease-up progress and construction execution before the project reaches stabilization.
BXP currently carries a Zacks Rank #3 (Hold). It has a VGM Score of B, Value Score of B and Momentum Score of B, while its Growth Score is D. The B scores indicate favorable value and momentum characteristics, but the #3 Rank and weaker Growth Score support a measured view rather than a stronger near-term signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BXP ve 2. čtvrtletí uzavřel 106 nájemních smluv na zhruba 1,8 milionu čtverečních stop a obsazenost stoupla na 88,4 %. Rizikem zůstávají nerovnoměrné nájemní sazby, 3,2 miliardy USD v rozvoji a možné vyšší náklady na refinancování.
Key Takeaways BXP's second-quarter leasing gains lifted occupancy to 88.4%, with 1.3 million square feet yet to commence.BXP trades at 9.3X forward earnings, below its sub-industry, sector, S&P 500 and five-year median.BXP faces uneven rent economics, $3.2 billion in development investment and potential refinancing costs. BXP, Inc. (BXP - Free Report) is benefiting from better leasing and rising occupancy, while its valuation remains modest relative to broader benchmarks. Those positives improve the setup for the office REIT.
The counterweight is a still-demanding risk profile. Uneven rent spreads, sizable development commitments and potentially higher refinancing costs could limit the near-term payoff from stronger occupancy.
BXP's Leasing Gains Improve the Fundamental SetupBXP executed 106 leases covering about 1.8 million square feet in the second quarter, equal to 129% of its 10-year second-quarter average. Portfolio occupancy rose to 88.4%, while the leased rate reached 91.3%.
The 290-basis-point gap between leased and occupied space represented about 1.3 million square feet of signed leases yet to commence. Management expects year-end 2026 occupancy to finish closer to 90% and continues to target 91% by year-end 2027.
BXP's Valuation Offers a Discounted Entry PointBXP trades at 9.3X forward 12-month earnings per share, below 16.4X for its sub-industry, 17.0X for the broader sector and 20.5X for the S&P 500. Its multiple also sits below its five-year median of 9.8X, providing some valuation support.
Investors comparing office REITs may also consider SL Green Realty Corp. (SLG - Free Report) , which focuses primarily on Manhattan commercial properties. Kilroy Realty Corporation (KRC - Free Report) owns and operates Class A office and life science properties across major West Coast markets and Austin, providing another reference point for office-sector conditions.
Shares of BXP have risen 13.4% over the past three months, which underperformed SLG, but outperformed KRC.
Image Source: Zacks Investment Research
BXP Still Faces Uneven Rent EconomicsSecond-generation net rents increased 1.6% portfolio-wide in the second quarter. The picture was weaker in several markets, with net rents down 17.8% in San Francisco, 20.1% in Seattle and 10.2% in Washington, DC.
New leases generally include six to 12 months of free rent. That concession delays part of the cash net operating income benefit from improving occupancy into 2027, leaving near-term cash-flow gains uneven.
BXP's Development Upside Comes With Execution RiskBXP's active development and redevelopment pipeline spans about 3.5 million square feet and represents $3.2 billion of company investment, with $2.1 billion still to be spent. The office portion was 65% leased.
The pipeline and recently delivered assets are projected to contribute about $310 million of BXP's share of cash net operating income upon stabilization. The potential is meaningful, but construction, funding and lease-up milestones still have to be met.
BXP's Debt Reset Could Temper FFO GrowthBXP's share of net debt to annualized EBITDAre, a REIT leverage measure, improved to 7.94X from 8.50X sequentially, while fixed-charge coverage rose to 2.62X from 2.40X. Those changes point to better balance-sheet metrics.
Still, a $1 billion unsecured bond carrying a 3.5% GAAP interest rate matures in October 2026. Management said replacement debt could price around 6% under then-current conditions, so refinancing may absorb part of the benefit from occupancy and development gains and temper funds from operations growth.
BXP's Mixed Scores Support PatienceBXP's operating trends are improving and its valuation is modest, but the risk-reward picture remains balanced. For investors deciding whether to buy now, the combination of better leasing, uneven rent economics, development spending and refinancing exposure supports a patient stance.
The stock currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of B, Value Score of B and Momentum Score of B, while its Growth Score is D. The B scores are favorable within those styles, but the #3 Rank and weaker Growth Score stop short of the stronger combination generally associated with a more aggressive buy case. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BXP, Inc. (BXP) Q2 2026 Earnings Call July 29, 2026 10:00 AM EDT
Company Participants
Helen Han - Vice President of Investor Relations
Owen Thomas - CEO & Chairman of the Board
Douglas Linde - President & Director
Michael LaBelle - Executive VP, Treasurer & CFO
Rodney Diehl - Executive VP of West Coast Regions
Hilary Spann - Executive Vice President of New York Region
Bryan Koop - Executive Vice President of Boston Region
Jake Stroman - Executive VP, Co-Head of the Washington & DC Region
Conference Call Participants
Nicholas Yulico - Scotiabank Global Banking and Markets, Research Division
Steve Sakwa - Evercore ISI Institutional Equities, Research Division
Jana Galan - BofA Securities, Research Division
John Kim - BMO Capital Markets Equity Research
Anthony Paolone - JPMorgan Chase & Co, Research Division
Michael Goldsmith - UBS Investment Bank, Research Division
Nicholas Joseph - Citigroup Inc. Exchange Research
Blaine Heck - Wells Fargo Securities, LLC, Research Division
Caitlin Burrows - Goldman Sachs Group, Inc., Research Division
Floris Gerbrand Van Dijkum - Ladenburg Thalmann & Co. Inc., Research Division
Upal Rana - KeyBanc Capital Markets Inc., Research Division
Dylan Burzinski - Green Street Advisors, LLC, Research Division
Richard Anderson - Cantor Fitzgerald & Co., Research Division
Peter Abramowitz - Deutsche Bank AG, Research Division
Alexander Goldfarb - Piper Sandler & Co., Research Division
Brendan Lynch - Barclays Bank PLC, Research Division
Ronald Kamdem - Morgan Stanley, Research Division
Vikram Malhotra - Mizuho Securities USA LLC, Research Division
Presentation
Operator
Good day, and thank you for standing by. Welcome to BXP Q2 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Helen Han, Vice President, Investor Relations. Please go ahead.
Helen Han
Vice President of Investor Relations
Good morning, and welcome to BXP's Second Quarter 2026 Earnings Conference Call. The press release and supplemental package were distributed last
Boston Properties (BXP - Free Report) came out with quarterly funds from operations (FFO) of $1.78 per share, beating the Zacks Consensus Estimate of $1.71 per share. This compares to FFO of $1.71 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +4.09%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.58 per share when it actually produced FFO of $1.59, delivering a surprise of +0.63%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
Boston Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $831.68 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.36%. This compares to year-ago revenues of $805.93 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Boston Properties shares have added about 2.6% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for Boston Properties?While Boston Properties has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Boston Properties was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $1.82 on $825.91 million in revenues for the coming quarter and $6.96 on $3.36 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, SmartStop (SMA - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This real estate investment trust with a focus on self-storage facilities is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +16.7%. The consensus EPS estimate for the quarter has been revised 1.3% lower over the last 30 days to the current level.
SmartStop's revenues are expected to be $77.04 million, up 15.3% from the year-ago quarter.
Key Takeaways BXP is expected to post slightly higher Q2 revenues, while FFO per share is projected to remain flat.BXP entered Q2 with 1.44M square feet of signed vacant-space leases and a 1.7M-square-foot pipeline.BXP may benefit from AI-driven leasing and office demand, though costs and interest expense remain headwinds. BXP, Inc. (BXP - Free Report) is slated to report second-quarter 2026 results on July 28, after market close. The company’s quarterly results are likely to display a year-over-year increase in revenues and no change in funds from operations (FFO) per share.
In the last reported quarter, this office real-estate investment trust (REIT) reported FFO per share of $1.59, edging past the Zacks Consensus Estimate of $1.58. The quarterly results reflected healthy leasing activity and higher occupancy.
Over the preceding four quarters, BXP’s FFO per share surpassed the Zacks Consensus Estimate thrice and missed in the remaining period, the average beat being 0.49%. This is depicted in the graph below:
US Office Market in Q2Per a Cushman & Wakefield report, the U.S. office market continued to recover in the second quarter of 2026, with AI-driven business expansion emerging as a key catalyst for demand, particularly in major gateway markets. AI companies, along with law firms and other professional-services tenants, increasingly sought high-quality office space to support employee collaboration, productivity and growth.
Although quarterly net absorption was slightly negative at 360,000 square feet, the four-quarter rolling total rose to 14.3 msf — the strongest since 2020 and the seventh consecutive quarter of improvement. Demand was broad-based, with positive annual absorption in 60% of tracked markets.
Vacancy stabilized at 20.1%, while available sublease space fell 15% year over year and 28% from its first-quarter 2024 peak. Class A offices continued to outperform, with vacancy declining 50 bps year over year and four-quarter net absorption reaching 24.5 msf, the highest since mid-2020. This stronger demand also supported premium pricing, with Class A asking rents averaging $44.17 per square foot in second-quarter 2026, well above the $38.38 national average across all office classes.
Supply conditions also remain supportive. Office completions fell to a 14-year low, the construction pipeline stayed below 20 msf, while conversions, demolitions and repositioning surged. These trends should limit oversupply and support further improvement in premium office fundamentals.
BXP: Factors at Play and Q2 ProjectionsBXP’s second-quarter 2026 results are likely to benefit from strong demand for premier offices, return-to-office trends and AI-related leasing in San Francisco and New York. The company entered the quarter with 1.44 million square feet of signed vacant-space leases and a 1.7-million-square-foot negotiation pipeline, supporting further occupancy and rental growth.
However, elevated leasing costs, tenant concessions, redevelopment spending and higher interest expenses may have limited margin expansion.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $813 million, implying a marginal increase from the prior-year quarter’s reported number.
BXP’s activities in the to-be-reported quarter were inadequate in garnering analysts’ confidence. The Zacks Consensus Estimate for second-quarter FFO per share has remained unchanged at $1.71 over the past three months. It suggests no change from the year-ago quarter’s tally.
What Our Quantitative Model Predicts for BXPOur proven model predicts a surprise in terms of FFO per share for BXP this quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
BXP has an Earnings ESP of +0.18% and currently carries a Zacks Rank of 3. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a LookHere are two other stocks from the broader REIT sector — Digital Realty Trust (DLR - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these also have the right combination of elements to report an FFO beat this quarter.
Digital Realty is slated to report quarterly numbers on July 23. DLR has an Earnings ESP of +2.30% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
BXP podepsala dlouhodobý pronájem asi 320 000 čtverečních stop v Reservoir Place s Boston Dynamics. Firma tam soustředí výrobu, výzkum a vývoj, školení i AI operace.
Key Takeaways BXP leased about 320,000 square feet at Reservoir Place to Boston Dynamics under a long-term agreement.Boston Dynamics will consolidate manufacturing, R&D, training and AI operations. Reservoir Place is part of BXP's Urban Edge portfolio across more than 5M sq. ft. and serves a mix of tenants. BXP, Inc. (BXP - Free Report) signed a long-term lease agreement with Boston Dynamics for approximately 320,000 square feet at Reservoir Place, a 530,000 square foot building located at 1601 Trapelo Road in Waltham, MA. The transaction represents one of the largest innovation-focused office leasing transactions in Greater Boston this year.
Boston Dynamics, a global leader in mobile robotics, plans to transform the leased space into a premier center for robotics and AI innovation. The company intends to consolidate manufacturing, research and development, training and artificial intelligence functions that are currently distributed across multiple locations into the new facility. Boston Dynamics expects to relocate to Reservoir Place in phases beginning in mid-2027.
Reservoir Place was selected for its scale, flexibility and connectivity to support Boston Dynamics' long-term growth while enabling the company to maintain its strong presence in Massachusetts. The project is the result of a collaborative effort among Boston Dynamics, the City of Waltham and the Commonwealth of Massachusetts to retain and expand one of the state's most prominent innovation companies.
BXP has owned and operated Reservoir Place since 1998. The property is part of BXP's Urban Edge portfolio, a mixed-use destination spanning more than 5 million square feet across Waltham, Weston and Lexington. BXP’s Urban Edge portfolio is home to a diverse mix of technology, life sciences and professional services companies, offering premium workplaces alongside housing, retail and dining options, hotels, fitness and wellness amenities, and extensive open spaces.
The lease further reinforces Reservoir Place's position as a leading destination for technology and innovation companies in Massachusetts. It also underscores the continued demand for high-quality office space that supports collaboration, attracts top talent and accommodates long-term growth strategies.
ConclusionBXP is expected to benefit from stable, long-term rental income at Reservoir Place through this landmark lease with Boston Dynamics. The addition of a globally recognized mobile robotics leader strengthens BXP's tenant roster, increases occupancy at a key asset and reinforces the appeal of its high-quality office properties to innovation-focused tenants.
In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 20.7% compared with the industry's 11.5% growth.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and Prologis (PLD - Free Report) , each carrying a Zacks Rank of #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CUZ’s 2026 FFO per share is pegged at $2.94, which indicates year-over-year growth of 3.52%.
The Zacks Consensus Estimate for PLD’s full-year FFO per share is pinned at $6.18, which calls for an increase of 6.37% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
