BXP (BXP) Q3 2026 earnings summary

Executive summary

• Q3 diluted FFO was $1.89 per share, $0.08 above guidance; 2026 FFO guidance rose to $7.06–$7.08 per share, with midpoint growth of 3.2%.

• In-service occupancy rose to 89.4% from 88.4% QoQ; strategy execution advanced through asset sales and continued development progress.

• Q3 revenue was $911.4 million, attributable net income was $114.5 million, diluted EPS was $0.71, and FAD was $163.4 million; each increased QoQ.

Financial highlights

• Q3 FFO was $302.2 million, or $1.89 per share, versus $283.4 million, or $1.78 per share, QoQ; stronger operating performance contributed $0.10 per share to the guidance beat.

• FY 2026 diluted EPS guidance is $2.35–$2.37 and diluted FFO per share guidance is $7.06–$7.08.

• Same-property NOI growth guidance rose 35 bps to 2.35%–2.75%; Q3 same-property NOI excluding termination income increased 3.4% YoY, while cash NOI declined 0.3%.

• Leasing spreads were up 6.55% gross and 9.33% net; Q3 FAD was $163.4 million, distributions were $124.4 million, and the FAD payout ratio was 76.11%.

Outlook and guidance

• Year-end 2026 occupancy is expected near 90%; guidance assumes average in-service occupancy of 88.75%–89.25% and cash NOI change of -0.25% to 0.25%.

• Same-property NOI and cash FFO are expected to grow more strongly in 2027, with occupancy gains, rent improvements, development contributions and free-rent burn-off offset by refinancing, lower capitalized interest and disposition dilution.

• 2027 disposition-related dilution is estimated at $0.08 per share, plus $0.06 if Times Square Tower sells in Q1; 2028 growth could accelerate as sale dilution and refinancing exposure decline.

• 2026 termination income is expected near $24 million versus a historical average near $15 million; 2027 termination income is expected to normalize.