BXP (BXP) Q3 2024 earnings summary

Executive summary

• Largest publicly traded developer, owner, and manager of premier workplaces in the U.S., with 184 properties totaling 53M sq. ft. across six major markets as of Q3 2024.

• Portfolio is 89.1% leased (in-service properties), with 3.3M sq. ft. of leases signed in the first three quarters of 2024, up 25% year-over-year.

• Weighted-average lease term is 7.5 years, supporting durable cash flows; top 20 clients have a 10-year average lease term.

• Recognized for sustainability, with top ESG ratings and awards from Time Magazine, Statista, NAREIT, GRESB, MSCI, and Sustainalytics.

• Net income attributable to BXP, Inc. rose to $243.1M for the nine months ended September 30, 2024, up 246% year-over-year.

Financial highlights

• Q3 2024 FFO per share was $1.81, $0.01 above guidance midpoint; full-year 2024 FFO guidance is $7.09–$7.11 per share.

• Q3 2024 net income attributable to BXP, Inc. was $83.6M, or $0.53 per diluted share; total revenue for Q3 was $859.2M.

• Annualized revenue (BXP's share) reached $3.3B; annualized EBITDAre was $2.0B.

• Dividend per share was $0.98 in Q3 2024, with a FAD payout ratio of 76–78.86%.

• Net debt to EBITDAre was 7.6x at Q3 2024; consolidated debt to market capitalization was 53.4%.

Outlook and guidance

• Full-year 2024 FFO per share guidance is $7.09–$7.11; EPS guidance is $2.05–$2.07.

• Expect to end 2024 with over 4.5M sq. ft. of leasing transactions, exceeding initial guidance.

• Development pipeline of $2.1B (54% pre-leased), with $1.1B remaining to be funded through 2029.

• Average in-service portfolio occupancy expected to range from 87.0% to 88.2% for 2024.

• Management anticipates continued tailwinds from improving corporate earnings and return-to-office trends.