EX-99.1 2 q22026supplemental.htm EX-99.1 Document Exhibit 99.1                                                      Supplemental Operating and Financial Data for the Quarter Ended June 30, 2026 THE COMPANY BXP, Inc. (NYSE: BXP) (“BXP” or the “Company”) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 55 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). As of June 30, 2026, including properties owned by joint ventures, BXP’s portfolio totals 51.1 million square feet and 164 properties, including six properties under construction/redevelopment. BXP’s portfolio consists of 143 office properties, 13 retail properties, seven residential properties (including four residential properties under construction) and one hotel. BXP is well-known for its in-house building management expertise and responsiveness to clients’ needs. BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner.  BXP has earned a fourteenth consecutive GRESB “Green Star” recognition and the highest GRESB 5-star Rating and was named one of the world’s most sustainable companies by TIME Magazine. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997. FORWARD-LOOKING STATEMENTS This Supplemental package contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will,” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond BXP’s control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to adverse changes in general economic and capital market conditions, including continued inflation, elevated interest rates, supply chain disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the U.S. or global economy, general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on favorable terms, sustained changes in client preferences and space utilization, dependence on clients’ financial condition, and competition from other developers, owners and operators of real estate), the impact of adverse political conditions, including policy changes by the presidential administration, such as the direct and indirect negative impacts that new and increased tariffs may have on (1) our current and prospective clients and their demand for office space and (2) the costs and availability of construction materials and the economic returns on our construction and development activities, and prolonged government shutdowns or disruptions, the impact of geopolitical conflicts, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. BXP does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law. NON-GAAP FINANCIAL MEASURES This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 56 . The Company presents “ BXP’s Share ” of certain non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP’s Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 60 . GENERAL INFORMATION Corporate Headquarters Trading Symbol Investor Relations Inquiries 800 Boylston Street BXP BXP, Inc. Inquiries should be directed to Suite 1900 800 Boylston Street, Suite 1900 Helen Han Boston, MA 02199 Stock Exchange Listing Boston, MA 02199 Vice President, Investor Relations www.bxp.com New York Stock Exchange investors.bxp.com at 617.236.3429 or (t) 617.236.3300 investorrelations@bxp.com hhan@bxp.com (t) 617.236.3429 Michael E. LaBelle Executive Vice President, Chief Financial Officer at 617.236.3352 or mlabelle@bxp.com (Cover photo: 290 Binney Street, Cambridge, MA)   Q2 2026 Table of contents Page OVERVIEW Company Profile 1 Guidance and assumptions 2 FINANCIAL INFORMATION Financial Highlights 3 Consolidated Balance Sheets 5 Consolidated Income Statements 6 Funds From Operations (FFO) 7 Funds Available for Distribution (FAD) 8 Net Operating Income (NOI) 9 Same Property Net Operating Income (NOI) by Reportable Segment 11 Capital Expenditures 13 Acquisitions and Dispositions 14 DEVELOPMENT ACTIVITY Construction in Progress 15 Land Parcels and Purchase Options 17 LEASING ACTIVITY Leasing Activity 18 PROPERTY STATISTICS Portfolio Overview 19 Residential and Hotel Performance 20 In-Service Property Listing 21 Top 20 Clients Listing and Portfolio Client Diversification 25 Occupancy by Location 26 DEBT AND CAPITALIZATION Capital Structure 27 Debt Analysis 29 Senior Unsecured Debt Covenant Compliance Ratios 30 Net Debt to EBITDA re 31 Debt Ratios 32 JOINT VENTURES Consolidated Joint Ventures 33 Unconsolidated Joint Ventures 35 LEASE EXPIRATION ROLL-OUT Total In-Service Properties 38 Boston 39 Los Angeles 41 New York 43 San Francisco 45 Seattle 47 Washington, DC 49 CBD 51 Suburban 53 RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS Research Coverage 55 Definitions 56 Reconciliations 60 Consolidated Income Statement - Prior Year 68   Q2 2026 Company profile SNAPSHOT (as of June 30, 2026) Fiscal Year-End December 31 Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 164 Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 51.1 million Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units and Outperformance Plan (OPP) Units) on an as-converted basis 1, 2 177.5 million Closing Price, at the end of the quarter $66.31 per share Dividend - Quarter/Annualized $0.70/$2.80 per share Dividend Yield 4.2% Consolidated Market Capitalization 2 $27.4 billion BXP’s Share of Market Capitalization 2, 3 $27.1 billion Unsecured Senior Debt Ratings BBB (S&P); Baa2 (Moody’s) STRATEGY BXP’s primary business objective is to maximize return on investment in an effort to provide its investors with the greatest possible total return in all points of the economic cycle. To achieve this objective, the key tenets of our long-term business strategy are to: • continue to embrace our leadership position in the premier workplace segment and leverage our strengths in portfolio quality, client relationships, development skills, market penetration, and sustainability to profitably build market share; • maintain a keen focus on select dynamic gateway markets that exhibit the strongest economic growth and investment characteristics over time - currently Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC; • invest in the highest quality buildings (primarily premier workplaces) with unique amenities and desirable locations that are able to maintain high occupancy rates and achieve premium rental rates through economic cycles; • maintain scale and a full-service real estate capability (leasing, development, construction, marketing, legal, and property management) in our markets to ensure we (1) see all relevant investment deal flow, (2) maintain an ability to execute on all types of real estate opportunities, such as acquisitions, dispositions, repositioning and development, throughout the real estate investment cycle, (3) provide superior service to our clients and (4) develop and manage our assets in the most sustainable manner possible; • ensure a strong balance sheet to maintain consistent access to equity and debt capital and the ability to make new investments at opportune times; • pursue attractive asset class adjacencies where we have a track record of success, such as life sciences and residential development; • recycle capital for future investment through disposing of assets that no longer meet our investment profile or provide an opportunity for an attractive sale price relative to reinvestment; • maintain a leadership position in sustainability innovation to minimize emissions from BXP’s development and in-service portfolio, as well as to provide clients sustainable solutions for their space use needs; and • foster a culture and reputation of integrity, excellence and purposefulness, making us the employer of choice for talented real estate professionals, the landlord and developer of choice for our clients, as well as the counterparty of choice for real estate industry participants. MANAGEMENT Board of Directors Owen D. Thomas Chairman of the Board Owen D. Thomas Chief Executive Officer Douglas T. Linde Douglas T. Linde President Joel I. Klein Lead Independent Director Michael E. LaBelle Executive Vice President, Chief Financial Officer and Treasurer Bruce W. Duncan Chair of Audit Committee Rodney C. Diehl Executive Vice President, West Coast Regions Diane J. Hoskins Chair of Sustainability Committee Donna D. Garesche Executive Vice President, Chief Human Resources Officer Mary E. Kipp Bryan J. Koop Executive Vice President, Boston Region Matthew J. Lustig Chair of Nominating & Corporate Peter V. Otteni Executive Vice President, Co-Head of the Washington, DC Governance Committee Region Timothy J. Naughton Chair of Compensation Committee Hilary J. Spann Executive Vice President, New York Region Julie G. Richardson John J. Stroman Executive Vice President, Co-Head of the Washington, DC William H. Walton, III Region Derek A. (Tony) West Colin D. Joynt Senior Vice President, Chief Information Officer Eric G. Kevorkian Senior Vice President, Chief Legal Officer and Secretary Michael R. Walsh Senior Vice President, Chief Accounting Officer ___________________ 1 Common units and LTIP units are units of limited partnership interest in Boston Properties Limited Partnership, the entity through which the Company conducts substantially all of its business. 2 For additional detail, see page 28. 3 For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 56 . 1   Q2 2026 Guidance and assumptions GUIDANCE BXP’s guidance for third quarter and full year 2026 for diluted earnings per common share attributable to BXP, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to BXP, Inc. is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in the Company’s earnings release issued on July 28, 2026 and those referenced during the related conference call.  The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions not under contract as of the date hereof, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may fluctuate as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 58. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below. Third Quarter 2026 Full Year 2026 Low High Low High Projected EPS (diluted) $ 0.50  $ 0.52  $ 2.14  $ 2.24  Add: Projected Company share of real estate depreciation and amortization 1.30  1.30  5.10  5.10  Projected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments —  —  (0.25) (0.29) Projected FFO per share (diluted) $ 1.80  $ 1.82  $ 6.99  $ 7.05  ASSUMPTIONS (dollars in thousands) Full Year 2026 Low High Operating property activity: Average In-service portfolio occupancy 1 88.50  % 89.25  % Change in BXP’s Share of Same Property net operating income (excluding termination income) 1.80  % 2.60  % Change in BXP’s Share of Same Property net operating income - cash (excluding termination income) (0.25) % 0.25  % BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) $ 52,000  $ 56,000  Taking Buildings Out-of-Service $ (11,000) $ (11,000) BXP’s Share of incremental net operating income related to asset sold over prior year $ (83,000) $ (79,000) BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) $ 145,000  $ 162,000  BXP’s Share of Termination income $ 19,000  $ 23,000  Other revenue (expense): Development, management services and other revenue $ 32,000  $ 36,000  General and administrative expense 2 $ (183,000) $ (176,000) Consolidated net interest expense $ (595,000) $ (588,000) Unconsolidated joint venture interest expense $ (62,000) $ (60,000) Noncontrolling interest: Noncontrolling interest in property partnerships’ share of FFO $ (194,000) $ (190,000) _______________ 1 Excludes development properties placed into service in 2026. 2 Excludes estimated changes in the market value of the Company’s deferred compensation plan and gains (losses) from investments in securities. 2   Q2 2026 Financial highlights (unaudited and in thousands, except ratios and per share amounts) Three Months Ended 30-Jun-26 31-Mar-26 Net income attributable to BXP, Inc. $ 68,564  $ 101,576  Net income attributable to BXP, Inc. per share - diluted $ 0.43  $ 0.64  FFO attributable to BXP, Inc. 1 $ 283,412  $ 252,236  Diluted FFO per share 1 $ 1.78  $ 1.59  Dividends per common share $ 0.70  $ 0.70  Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 142,069  $ 88,667  Selected items: Revenue $ 895,699  $ 872,148  Recoveries from clients $ 152,352  $ 151,875  Service income from clients $ 4,840  $ 2,848  BXP’s Share of revenue 3 $ 838,636  $ 825,470  BXP’s Share of straight-line rent 3 $ 19,396  $ 20,444  BXP’s Share of fair value lease revenue 3, 4 $ 2,864  $ 2,715  BXP’s Share of termination income 3 $ 2,805  $ 12,828  Ground rent e