BXP Completes $1.14B Portfolio Dispositions, $55M Office Real Estate Acquisition in DC

BXP, Inc. announced the completion of approximately $1.14 billion in gross portfolio dispositions alongside a $55 million real estate acquisition in Washington, DC, as part of its strategic portfolio optimization focused on premier workplace development in gateway markets.

The publicly traded developer, owner, and manager reported the transactions as part of its fourth quarter and full year 2025 results announced January 27, 2026. The dispositions generated net proceeds in excess of $1.0 billion and included office real estate, multifamily properties, and land parcels across Boston, Washington, DC, and San Francisco.

Office Real Estate and Portfolio Disposition Details

BXP disposed of non-strategic office properties generating approximately $397.2 million in net proceeds. The company also sold suburban land parcels across the Boston, San Francisco, and Washington, DC regions for approximately $227.1 million in net proceeds.

The multifamily component included the sale of two stabilized residential properties—Proto in Cambridge, Massachusetts and Signature in Reston, Virginia—generating approximately $403.7 million in net proceeds. The aggregate dispositions produced total gains exceeding $170 million.

CEO Owen Thomas stated the transactions enable the company to "raise capital... and increase our premier workplace portfolio concentration in central business districts." The dispositions advance BXP's multi-year $1.9 billion disposition target for 2025-2027, with $845 million closed by end-2025 and additional sales completed in January 2026.

Commercial Real Estate Financing and Strategic Acquisition

BXP acquired 2100 M Street in Washington, DC's West End submarket for $55.0 million. The company plans to demolish the existing structure and redevelop the site into a 320,000 square foot premier workplace, with 234,000 square feet pre-leased to law firm Sidley Austin.

The acquisition represents BXP's strategy to recycle capital from non-core suburban assets into central business district real estate development projects. The company's portfolio concentration in gateway CBD markets—Boston, New York, San Francisco, Washington, DC, Los Angeles, and Seattle—now represents approximately 90% of rental obligations.

BXP upsized its revolving credit facility to $2.25 billion with a maturity extended to 2030. The company also completed $1 billion in exchangeable notes and $465 million in CMBS financing during 2025 to support its commercial real estate financing strategy.

Real Estate Development Pipeline and Portfolio Performance

The disposition proceeds fund BXP's premier workplace real estate development pipeline in core gateway markets. The company delivered projects in the fourth quarter including 1050 Winter Street in Boston (162,000 square feet, 100% leased) and Reston Next Office Phase II in Virginia (87,000 square feet, 92% leased).

BXP's total portfolio decreased to 52.6 million square feet across 179 properties at year-end 2025, down from 54.6 million square feet and 187 properties in the third quarter. Total portfolio occupancy increased 70 basis points quarter-over-quarter to 86.7%, with leased percentage reaching 89.4%.

The company's central business district portfolio demonstrated stronger performance with 89.8% occupancy and 92.5% leased rates, each increasing 50 basis points. BXP executed more than 1.8 million square feet of leases in the fourth quarter, totaling more than 5.5 million square feet for full year 2025.

Financial Results and Market Outlook

Revenue increased 2.2% to $877.1 million for the quarter ended December 31, 2025, compared to $858.6 million in the prior year period. Net income attributable to BXP reached $248.5 million, or $1.56 per diluted share, compared to a loss of $230.0 million, or negative $1.45 per diluted share, in the fourth quarter 2024.

Funds from Operations totaled $280.2 million, or $1.76 per diluted share, for the fourth quarter 2025, compared to $284.0 million, or $1.79 per diluted share, in the prior year quarter. For full year 2025, FFO reached $1.1 billion, or $6.85 per diluted share.

BXP provided guidance for first quarter 2026 FFO of $1.56 to $1.58 per diluted share and full year 2026 FFO of $6.88 to $7.04 per diluted share. The midpoint of full-year 2026 guidance represents $0.11 per share growth over 2025 FFO, driven by projected same-property NOI growth from higher occupancy and improved leasing activity.