From The Motley Fool · Motley Fool Transcribing · · 2m
BXP Q3 2026 Earnings Beat
BXP beats earnings guidance with strong occupancy growth and asset sales.
In brief
BXP beats earnings guidance with strong occupancy growth and asset sales. BXP reported Q3 FFO per share of $1.89, exceeding guidance by $0.08 due to higher occupancy and service income. Originally reported by The Motley Fool.
Q3 FFO Performance
BXP reported third-quarter FFO per share of $1.89, exceeding the midpoint of management's guidance by $0.08.
2026 FFO Guidance
Management raised full-year 2026 FFO guidance to $7.06 to $7.08 per share, an increase of $0.05 at the midpoint from previous projections.
Portfolio Occupancy
Portfolio occupancy reached 89.4% as of the end of the quarter, a 100-basis-point increase from the previous quarter and surpassing the year-end target of 89%.
Leasing Activity
Completed 1.2 million square feet of leasing in the third quarter, bringing year-to-date total to more than 4 million square feet.
Same Property NOI Growth
Same property net operating income growth projected at 2.35% to 2.75% for 2026, an increase of 35 basis points from the prior quarter's estimate.
Asset Dispositions
Generated $520 million in net sale proceeds during 2026, with $1.37 billion raised since the last investor conference.
Washington DC Sales
Sold Sumner Square for $63 million at 9.9% cap rate and 1330 Connecticut Avenue for $102 million at 8% cap rate.
Leasing Spreads
Achieved 6.5% gross leasing spreads and 9.3% net leasing spreads during the third quarter.
Midtown Manhattan
Midtown Manhattan net rents up 23% for office transactions completed in the third quarter.
San Francisco Rents
San Francisco rent appreciation reached 25% at 680 Folsom Street, moving from mid-$60s to mid-$80s per square foot.
Salesforce Tower
Salesforce Tower market rents 30% to 60% higher than expiring rents, still discounts to new construction rents.
Development Pipeline
Total investment across seven projects amounts to $2.9 billion with approximately $750 million in equity remaining to be funded.
343 Madison Pre-leasing
56% leased as of third quarter following a two-floor lease with a business service company.
Google Lease
206,000 square feet at 500 North Capitol Street backfilling 100% of future vacancy more than two years in advance.
2026 Bond Refinancing
Completed $700 million 10-year bond offering at 6.05% interest rate to repay $1 billion bond maturing in October.
Termination Income
$24 million projected for full year 2026, exceeding historical average of approximately $15 million.
The main idea
BXP reported Q3 FFO per share of $1.89, exceeding guidance by $0.08 due to higher occupancy and service income.
