Q3 FY2026
Filed Oct 27, 2026Q3 revenue was $911,431 (in thousands), net income attributable to BXP, Inc. was $114,482 (in thousands), and diluted FFO per share was $1.89.
Revenue, FFO, occupancy and same-property NOI were higher than the immediately preceding quarter or prior-year comparison where reported. Same-property NOI cash was down year over year, leverage remained elevated, and full-year guidance retained a narrow range.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $911.4M | – | – |
| Lease revenue, three months ended September 30, 2026GAAP | $846.2M | – | – |
| Parking and other revenue, three months ended September 30, 2026GAAP | $36.89M | – | – |
| Insurance proceeds, three months ended September 30, 2026GAAP | $1.38M | – | – |
| Hotel revenue, three months ended September 30, 2026GAAP | $13.22M | – | – |
| Development and management services revenue, three months ended September 30, 2026GAAP | $9.79M | – | – |
| Direct reimbursements of payroll and related costs from management services contracts, three months ended September 30, 2026GAAP | $3.99M | – | – |
| Total expenses, three months ended September 30, 2026GAAP | $615.6M | – | – |
| Operating expenses, three months ended September 30, 2026GAAP | $192.3M | – | – |
| Real estate taxes, three months ended September 30, 2026GAAP | $142.0M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $37.60M | – | – |
| Depreciation and amortization expense, three months ended September 30, 2026GAAP | $228.7M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$159.1M | – | – |
| Gains on sales of real estate, three months ended September 30, 2026GAAP | $10.44M | – | – |
| Impairment loss, three months ended September 30, 2026GAAP | — | – | – |
| Net income, three months ended September 30, 2026GAAP | $155.5M | – | – |
| Net income attributable to BXP, Inc., three months ended September 30, 2026GAAP | $114.5M | – | – |
| Net income attributable to BXP, Inc. per share, diluted, three months ended September 30, 2026GAAP | $0.71 | – | – |
| Net income attributable to BXP, Inc. per share, basic, three months ended September 30, 2026GAAP | $0.72 | – | – |
| FFO attributable to BXP, Inc., three months ended September 30, 2026non-GAAP | $302.2M | – | – |
| Diluted FFO per share, three months ended September 30, 2026non-GAAP | $1.89 | – | – |
| Funds available for distribution to common shareholders and common unitholders (FAD), three months ended September 30, 2026non-GAAP | $163.4M | – | – |
| FAD payout ratio, three months ended September 30, 2026non-GAAP | 76.11 % | – | – |
| Operating margins [(rental revenue - rental expense)/rental revenue], three months ended September 30, 2026other | 62.1 % | – | – |
| BXP's Share of Same Property NOI excluding termination income, three months ended September 30, 2026non-GAAP | $487.9M | – | 3.4 % |
| BXP's Share of Same Property NOI cash excluding termination income, three months ended September 30, 2026non-GAAP | $449.7M | – | (0.3) % |
| Occupancy % of In-Service Propertiesother | 89.4 % | – | – |
| Leased % of In-Service Propertiesother | 91.9 % | – | – |
| Consolidated debt, September 30, 2026GAAP | $16.59B | – | – |
| BXP's Share of Debt, September 30, 2026non-GAAP | $16.33B | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $1.47B | – | – |
| BXP's Share of Net Debt, September 30, 2026non-GAAP | $14.89B | – | – |
| BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized), September 30, 2026non-GAAP | 7.52 | – | – |
| Interest Coverage Ratio excluding capitalized interest, three months ended September 30, 2026non-GAAP | 2.98 | – | – |
| Fixed Charge Coverage Ratio, three months ended September 30, 2026non-GAAP | 2.50 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Office Same Property, three months ended September 30, 2026Rental revenue excluding termination income was $840,271 (in thousands); NOI excluding termination income was $515,396 (in thousands), up 3.5 %. | $840.3M | – | 3.4 % |
| Hotel & Residential Same Property, three months ended September 30, 2026NOI excluding termination income was $5,134 (in thousands), up 5.5 %. | $17.10M | – | 3.8 % |
| BXP's Share Same Property, three months ended September 30, 2026NOI excluding termination income was $487,900 (in thousands), up 3.4 %; cash NOI excluding termination income was $449,733 (in thousands), down (0.3) %. | $803.4M | – | 3.2 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- NoteProjected EPS (diluted): $2.35 to $2.37
- NoteProjected Company share of real estate depreciation and amortization: $5.02 to $5.02
- NoteProjected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments: $(0.31) to $(0.31)
- NoteProjected FFO per share (diluted): $7.06 to $7.08
- NoteAverage In-service portfolio occupancy: 88.75 % to 89.25 %
- NoteChange in BXP's Share of Same Property net operating income (excluding termination income): 2.35 % to 2.75 %
- NoteChange in BXP's Share of Same Property net operating income - cash (excluding termination income): (0.25) % to 0.25 %
- NoteBXP's Share of Non Same Properties' incremental contribution to net operating income over prior year (excluding asset sales): $52,000 to $56,000
- NoteTaking Buildings Out-of-Service: $(11,000) to $(11,000)
- NoteBXP's Share of incremental net operating income related to assets sold over prior year: $(79,000) to $(78,000)
- NoteBXP's Share of straight-line rent and fair value lease revenue (non-cash revenue): $150,000 to $162,000
- NoteBXP's Share of Termination income: $23,000 to $25,000
- NoteDevelopment, management services and other revenue: $34,000 to $36,000
- NoteGeneral and administrative expense: $(183,000) to $(176,000)
- NoteConsolidated net interest expense: $(598,000) to $(593,000)
- NoteUnconsolidated joint venture interest expense: $(62,000) to $(60,000)
- NoteNoncontrolling interest in property partnerships' share of FFO: $(197,000) to $(194,000)
Capital returns
- Dividends per common share: $0.70 for the three months ended September 30, 2026.
- Distributions to common shareholders and unitholders (excluding any special distributions): $124,379 (in thousands).
- Dividend - Quarter/Annualized: $0.70/$2.80 per share.
What drove it
- Total leases executed during the quarter were 1,208,343 square feet, including 93,065 square feet of 1st generation leases and 1,115,278 square feet of 2nd generation leases.
- Total leases commenced during the quarter were 1,514,401 square feet, and vacant space available for lease at the end of the period was 4,836,536 square feet.
- Second generation leases had an increase in gross rents of 6.55 % and an increase in net rents of 9.33 %.
- Total portfolio occupancy was 89.4 % at September 30, 2026, compared with 88.4 % at June 30, 2026.
- Same Property Office NOI excluding termination income increased 3.5 %, while Hotel & Residential Same Property NOI excluding termination income increased 5.5 %.
- Residential average monthly rental rates increased 2.50 % in Boston, 12.05 % in San Francisco, and 18.04 % in Washington, DC year over year.
- The Boston Marriott Cambridge reported average occupancy of 85.40 %, average daily rate of $331.21, and revenue per available room of $282.97.
Concerns
- BXP's Share of Same Property NOI cash excluding termination income was $449,733 (in thousands), compared with $451,266 (in thousands) in the prior-year period, a change of (0.3) %.
- BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) was 7.52 at September 30, 2026.
- Interest Coverage Ratio excluding capitalized interest was 2.98 and Fixed Charge Coverage Ratio was 2.50, each compared with 3.12 and 2.62, respectively, at June 30, 2026.
- Consolidated debt was $16,590,522 (in thousands), compared with $15,618,563 (in thousands) at June 30, 2026.
- San Francisco suburban in-service office occupancy was 57.4 %, Washington, DC suburban in-service office occupancy was 52.8 %, and New York suburban in-service office occupancy was 75.4 %.
- BXP's Share of straight-line rent was $46,541 (in thousands), compared with $19,396 (in thousands) in the preceding quarter.
What to watch
- Full-year 2026 projected diluted FFO per share of $7.06 to $7.08 and projected diluted EPS of $2.35 to $2.37.
- Full-year average In-service portfolio occupancy guidance of 88.75 % to 89.25 %.
- Full-year guidance for BXP's Share of Same Property NOI excluding termination income growth of 2.35 % to 2.75 % and cash NOI growth of (0.25) % to 0.25 %.
- Leasing execution and rent changes in San Francisco, where 2nd generation gross rents decreased (8.31) % and net rents decreased (11.19) %.
- Construction projects totaling 3,506,650 square feet, with estimated total investment of $2,935,400 (in thousands) and estimated future equity requirement of $748,157 (in thousands).
- The $1.0 billion aggregate principal amount of BPLP's 2.750% senior unsecured notes that was repaid at par on October 1, 2026.
Balance sheet and cash flow
- Cash and cash equivalents: $1,471,631 (in thousands) at September 30, 2026.
- Cash held in escrows: $50,029 (in thousands) at September 30, 2026.
- Total assets: $26,271,838 (in thousands) at September 30, 2026.
- Total liabilities: $18,460,370 (in thousands) at September 30, 2026.
- Total equity: $7,803,891 (in thousands) at September 30, 2026.
- Consolidated debt: $16,590,522 (in thousands) at September 30, 2026.
- Consolidated Debt/Consolidated Market Capitalization: 60.47 %.
- BXP's Share of Debt/BXP's Share of Market Capitalization: 60.08 %.
- BXP's Share of Capital Expenditures: $17,153 (in thousands) for the three months ended September 30, 2026.
- Total acquisitions from January 1, 2026 through September 30, 2026: $56,687 (in thousands).
- Total dispositions from January 1, 2026 through September 30, 2026: gross sales price of $889,131 (in thousands), net cash proceeds of $569,744 (in thousands), and book gain (loss) of $73,320 (in thousands).
Analysis
BXP reported Q3 2026 total revenue of $911,431 (in thousands), compared with $895,699 (in thousands) in Q2 2026. Net income attributable to BXP, Inc. was $114,482 (in thousands), compared with $68,564 (in thousands) in Q2, while diluted EPS was $0.71 versus $0.43. The quarter included $10,441 (in thousands) of gains on sales of real estate and no impairment loss, versus an impairment loss of $(18,036) (in thousands) in Q2. FFO attributable to BXP, Inc. was $302,240 (in thousands) and diluted FFO per share was $1.89, compared with $283,412 (in thousands) and $1.78 in Q2.
Property operations showed positive reported leasing and occupancy measures. Occupancy of in-service properties was 89.4 % and leased percentage was 91.9 %, compared with 88.4 % and 91.3 %, respectively, at June 30, 2026. BXP executed 1,208,343 square feet of leases, with 2nd generation gross and net rents increasing 6.55 % and 9.33 %, respectively. BXP's Share of Same Property NOI excluding termination income was $487,900 (in thousands), compared with $471,798 (in thousands) in the prior-year quarter, a reported increase of 3.4 %. The cash version was $449,733 (in thousands), compared with $451,266 (in thousands), a reported change of (0.3) %.
Office drove the same-property revenue base, with rental revenue excluding termination income of $840,271 (in thousands), up 3.4 %, and NOI excluding termination income of $515,396 (in thousands), up 3.5 %. Hotel and residential same-property rental revenue excluding termination income was $17,102 (in thousands), up 3.8 %, with NOI up 5.5 %. Residential rental-rate and occupancy measures were positive across Boston, San Francisco and Washington, DC. The regional picture remains uneven, with in-service office occupancy at 57.4 % in suburban San Francisco and 52.8 % in suburban Washington, DC.
Capital allocation included $56,687 (in thousands) of acquisitions and $889,131 (in thousands) of gross disposition sales price for the period from January 1, 2026 through September 30, 2026. Cash and cash equivalents were $1,471,631 (in thousands) at September 30, 2026, while consolidated debt was $16,590,522 (in thousands). BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) was 7.52, and the Interest Coverage Ratio excluding capitalized interest was 2.98. The quarterly common dividend was $0.70 per share, and the FAD payout ratio was 76.11 %.
Full-year 2026 guidance calls for diluted EPS of $2.35 to $2.37 and diluted FFO per share of $7.06 to $7.08. Management's operating assumptions include average in-service portfolio occupancy of 88.75 % to 89.25 %, BXP's Share of Same Property NOI growth excluding termination income of 2.35 % to 2.75 %, and cash NOI growth of (0.25) % to 0.25 %. The principal operating variables to monitor are occupancy, the cash NOI trajectory, leasing spreads, the contribution from non-same properties, and execution on a construction pipeline totaling 3,506,650 square feet.
Not in the filing
stated, not guessed- Prior-year total revenue for the three months ended September 30, 2026.
- GAAP gross margin.
- GAAP operating income.
- Non-GAAP operating income.
- GAAP and non-GAAP income-tax rate.
- Operating cash flow.
- Free cash flow.
- Share repurchases.
- Prior-year diluted GAAP EPS.
- Prior-year FFO attributable to BXP, Inc. and diluted FFO per share.
- Previous-release outlook for comparison to actual results.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.