BXP Reports Q1 2026 Results: 1.1M SF Office Leasing, $1.2B in Real Estate Asset Sales

BXP, Inc. (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported first quarter 2026 financial results on April 28, 2026, announcing more than 1.1 million square feet of office real estate leasing activity, a 70-basis-point sequential increase in total portfolio occupancy, and approximately $1.2 billion in aggregate net proceeds from completed asset sales as part of its ongoing portfolio repositioning strategy.

Q1 2026 Financial Highlights: EPS Exceeds Guidance on Disposition Gains

BXP reported net income attributable to BXP, Inc. of $101.6 million, or $0.64 per diluted share, for the quarter ended March 31, 2026, compared to $61.2 million, or $0.39 per diluted share, for the same period in 2025. Earnings per diluted share exceeded the midpoint of BXP's guidance by $0.31 per diluted share, primarily due to gains on sales recognized in connection with disposition activity completed in the first quarter.

Revenue increased 0.8% to $872.1 million for the quarter ended March 31, 2026, compared to $865.2 million for the quarter ended March 31, 2025. Funds from Operations (FFO) totaled $252.2 million, or $1.59 per diluted share, compared to $260.6 million, or $1.64 per diluted share, in Q1 2025. FFO for the first quarter exceeded the midpoint of BXP's guidance by $0.02 per diluted share, which the company attributed to portfolio outperformance.

During the first quarter, BXP's asset sales program generated approximately $339.0 million in net proceeds and $54.7 million in gains on sales of real estate and investments in joint ventures, based on BXP's share.

Office Real Estate Leasing: 68 Deals Totaling 1.1M SF with 8.7-Year Average Term

BXP executed 68 leases in the first quarter totaling more than 1.1 million square feet, with a weighted-average lease term of 8.7 years. Two properties drove notable leasing volume during the quarter:

• 360 Park Avenue South, New York City, NY: Approximately 140,000 square feet of leases were executed, bringing the building's leased percentage to 90%.
• 680 Folsom Street, San Francisco, CA: Approximately 104,000 square feet of leases were executed, bringing the building's leased percentage to 92%.

BXP's central business district (CBD) portfolio of premier workplaces was 89.9% occupied and 93.4% leased as of March 31, 2026, with approximately 90% of BXP's share of annualized rental obligations derived from clients in the CBD portfolio. Total portfolio occupancy reached 87.4%, up 70 basis points from Q4 2025, while the total portfolio leased percentage rose to 90.9%, an increase of 150 basis points from Q4 2025.

The spread between leased and occupied square footage widened to 350 basis points, representing approximately 1.6 million square feet of leases yet to commence revenue recognition. BXP noted that approximately 90% of that pipeline is expected to commence throughout 2026, consistent with the trajectory outlined at its Investor Day in September 2025. More than 1.4 million square feet of leasing is scheduled to commence through the end of 2026.

Strategic Asset Dispositions Generate $1.2B in Proceeds

Consistent with the strategic asset sales plan outlined at its Investor Day, BXP has generated approximately $1.2 billion in aggregate net proceeds from completed asset sales to date, including approximately $180.0 million since its last earnings call on January 28, 2026. The company said the proceeds further enhance balance sheet flexibility and support capital needs and strategic priorities.

During the first quarter, BXP completed the following dispositions:

• North First Business Park, San Jose, CA
• A land parcel in Rockville, MD
• The Lofts at Atlantic Wharf, Boston, MA
• BXP's ownership interest in Gateway Commons, South San Francisco, CA
• BXP's ownership interest in 7750 Wisconsin Avenue, Bethesda, MD

The aggregate gross proceeds from these residential, land, and non-strategic office sales totaled approximately $495.7 million, resulting in net proceeds of approximately $339.0 million and gains on sales of real estate and investments in joint ventures of $54.7 million, based on BXP's share.

Updated Full-Year 2026 Guidance

BXP provided guidance for second quarter 2026 earnings per diluted share of $0.44 to $0.46 and FFO of $1.69 to $1.71 per diluted share. For the full year 2026, the company updated its guidance to EPS of $2.15 to $2.29 and FFO of $6.90 to $7.04 per diluted share.

The midpoint of full-year 2026 EPS guidance increased by $0.04 per diluted share primarily due to gains on sales recognized in connection with disposition activity and better-than-projected portfolio performance. The midpoint of full-year 2026 FFO guidance increased by $0.01 per diluted share primarily due to better-than-projected portfolio performance.

As of March 31, 2026, BXP's portfolio totals 50.4 million square feet and 164 properties, including six properties under construction or redevelopment, spanning its six gateway markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP is organized as a real estate investment trust (REIT) and has operated for more than 55 years.

BXP hosted a conference call on April 29, 2026, to discuss the first quarter results, earnings guidance, and business update. A replay of the call is available on BXP's investor relations website for up to twelve months following the call.

BXP noted that its reported results are unaudited and that actual results may differ materially from forward-looking statements due to risks including changes in economic and capital market conditions, tariff impacts on construction costs and tenant demand, elevated interest rates, and other factors detailed in its SEC filings.