A real estate investment trust that owns, develops, and manages high-quality office workplaces in six U.S. gateway markets—Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. Founded in 1970 in Boston by Mortimer Zuckerman and Edward Linde, who met at the development firm Cabot, Cabot & Forbes, the company was long known as Boston Properties before renaming itself BXP in 2024—adopting the stock ticker it had used for years to signal its national reach.
Same-property NOI rose 4.12% and occupancy climbed 100 bps sequentially, but a non-cash impairment and lower sale gains cut net income 22.9%.
Leasing hit its highest level in over a decade, but one-off charges pulled earnings lower. rose 3.2% to $831.7M and widened 1 point to 64.8%, driven by a 4.12% increase in , while fell 22.9% to $68.6M after an $18M and a drop in asset sale gains. The core portfolio is strengthening, but reported profits remain choppy.
Key takeaways
rose 4.12% , as lease increased 3.12% and termination income provided an additional lift.
Total in-service portfolio occupancy rose 100 sequentially to 88.4%, and the leased percentage reached 91.3%, widening the spread of signed-but-uncommenced leases.
BXP executed 1.8 million square feet of leases, approximately 129% of its 10-year quarterly average, including a 322,000-square-foot lease with Boston Dynamics.
Section summaries
Management's Discussion and Analysis
BXP's Q2 2026 results show strong leasing momentum and occupancy gains, driven by premier workplace demand, while executing strategic asset sales.
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Total in-service portfolio occupancy rose 100 sequentially to 88.4%, with the leased percentage reaching 91.3%.
Same Property grew 4.12% for Q2 2026, driven by a 3.12% increase in lease and higher termination income.
fell 22.9% to $68.6M, primarily from an $18.0M on Sumner Square and lower gains on real estate sales versus the prior-year period.
A $1.2B construction loan for 343 Madison Avenue closed after the quarter, reducing the remaining equity requirement for the development pipeline from $2.1B to $900M.
Strategic asset sales generated roughly $432M in net proceeds year-to-date, with an additional $440M in potential net disposition proceeds estimated for the remainder of 2026.
What changed
The Q2 2025 watch item on same-property resolved positively: it rose 4.12% in Q2 2026, reversing the prior-year trend of occupancy-driven pressure.
The up-to-$600M asset sale program flagged in mid-2025 is progressing, with $432M in net proceeds year-to-date and an estimated $440M more expected in 2026.
The development pipeline funding risk flagged in Q1 2025 has been materially reduced: a post-quarter construction loan cut BXP's remaining equity commitment from $2.1B to $900M.
The Q1 2026 watch on second-generation cash rents remains open: Q1 showed a 3.18% net decline, and Q2 results do not provide an updated figure.
What to watch
Q3 2026 same-property against the 4.12% Q2 gain as 2.58% of square feet expire in 2026.
Progress on the remaining $440M in estimated net disposition proceeds for 2026.
Development pipeline pre-leasing percentage from the 62% Q1 2025 level as the remaining $900M equity is drawn.
Whether second-generation cash rents stabilize after the 3.18% Q1 net decline as the large volume of newly signed leases commences.
BXP executed 1.8 million square feet of leases in Q2 2026, approximately 129% of its 10-year quarterly average, including a 322,000 sq ft lease with Boston Dynamics.
Strategic asset sales generated approximately $432 million in net proceeds year-to-date, with an additional $440 million in potential net disposition proceeds estimated for the remainder of 2026.
A $1.2 billion construction loan for 343 Madison Avenue closed post-quarter, reducing BXP's remaining equity requirement for its development pipeline from $2.1 billion to $900 million.
attributable to BXP, Inc. decreased to $68.6 million from $89.0 million in Q2 2025, primarily due to an $18.0 million non-cash on Sumner Square and lower gains on real estate sales.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk from $2.3B in variable-rate debt is the primary market risk, partially hedged with swaps.
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The company’s main market risk is interest-rate exposure from its indebtedness, which includes both fixed- and variable-rate instruments.
As of June 30, 2026, $13.3B of debt was fixed-rate and $2.3B was variable-rate, but $600M in swaps reduced effective variable-rate debt to $1.7B.
A hypothetical 100-basis-point increase in variable rates would have raised by $5.9M for the quarter and $11.8M for the six months.
The company manages interest-rate risk by matching long-term leases with long-term, fixed-rate, non-recourse debt and pre-leasing developments to creditworthy clients.
Derivative use introduces , which is mitigated by dealing only with major banks meeting credit and capital guidelines.
We are subject to legal proceedings and claims that arise in the ordinary course of business. Information regarding legal proceedings is incorporated herein by reference to Note 8 to the Consolidated Financial Statements included in Part 1, Item 1 of this Quarterly Report on For…
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We are subject to legal proceedings and claims that arise in the ordinary course of business. Information regarding legal proceedings is incorporated herein by reference to Note 8 to the Consolidated Financial Statements included in Part 1, Item 1 of this Quarterly Report on Form 10-Q.
Except to the extent updated below or to the extent factual information disclosed elsewhere in this Quarterly Report on Form 10-Q relates to such risk factors (including, without limitation, the matters discussed in Part I, “Item 2—Management’s Discussion and Analysis of Financi…
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Except to the extent updated below or to the extent factual information disclosed elsewhere in this Quarterly Report on Form 10-Q relates to such risk factors (including, without limitation, the matters discussed in Part I, “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations”), there were no material changes to the risk factors disclosed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025.