BXP Inc (NYSE:BXP) Reports Q3 2025: Strong Leasing Offsets Net Loss from Impairment Charges

BXP Inc (NYSE:BXP) reported third quarter 2025 results that presented investors with a complex picture, featuring strong operational leasing performance alongside a significant net loss driven by non-cash impairment charges. The commercial real estate investment trust's financial metrics showed mixed results compared to analyst expectations, contributing to varied market reactions in the trading sessions following the announcement.

Financial Performance Versus Estimates

The company's third quarter financial results revealed notable deviations from analyst projections across key metrics. Revenue for the quarter reached $871.5 million, representing a 1.4% increase compared to the same period in 2024 but falling short of the $863.8 million analyst estimate. This performance indicates steady but modest top-line growth in a challenging office market environment.

The earnings picture proved more complicated, with BXP reporting:

• Net loss of $121.7 million, or $(0.77) per diluted share
• Funds from Operations (FFO) of $1.74 per diluted share, exceeding guidance by $0.04
• FFO performance driven by portfolio outperformance despite revenue headwinds

The substantial net loss was primarily attributable to non-cash impairment charges totaling $1.22 per diluted share related to the company's strategic asset sales program. These one-time items significantly impacted the bottom line while the core operating performance, as measured by FFO, demonstrated resilience.

Market Reaction and Price Action

Trading activity following the earnings release reflected investor uncertainty in interpreting the mixed results. The stock showed limited movement in after-hours trading immediately following the announcement, while recent performance indicators reveal:

• Weekly performance: +5.46%
• Two-week performance: +6.32%
• Monthly performance: -1.11%

This pattern suggests that while investors have responded positively to recent developments, including pre-earnings optimism, the quarterly results themselves generated limited immediate directional conviction. The market appears to be balancing strong operational leasing achievements against the financial impact of strategic portfolio repositioning.

Operational Highlights and Leasing Strength

BXP demonstrated robust leasing activity during the quarter, signing 79 leases totaling more than 1.5 million square feet with a weighted-average lease term of 7.9 years. This represents the company's strongest third quarter leasing performance since 2019 and a 38% increase over the third quarter of 2024. Notable transactions included:

• Over 475,000 square feet of leasing in Midtown Manhattan, primarily representing extensions for existing financial services clients
• More than 200,000 square feet of leasing in Boston's Urban Edge market, all on existing vacancy
• A 50,000 square foot lease with a technology client in Reston, Virginia, bringing that property to 98% leased

Portfolio occupancy metrics showed stability, with the CBD portfolio of premier workplaces achieving 89.3% occupancy and 92.0% leased status. The overall portfolio occupancy stood at 86.6%, excluding third quarter development deliveries, representing a 20 basis point improvement from the previous quarter.

Strategic Developments and Capital Management

The company maintained an active development pipeline, commencing full vertical construction of 343 Madison Avenue in New York City, a 930,000 square foot premier workplace project. BXP has already secured a letter of intent for approximately 274,000 square feet, representing 30% of the building's space, with active discussions underway for additional leasing.

Balance sheet management initiatives included:

• Issuance of $1.0 billion in 2.00% Exchangeable Senior Notes due 2030, upsized from the initially announced $600 million
• Completion of a $465 million CMBS loan for The Hub on Causeway joint venture, representing BXP's first "Green Bond" financing
• Properties under contract for sale aggregating approximately $400 million of estimated net proceeds

Forward Guidance and Analyst Expectations

BXP provided updated full-year 2025 guidance projecting EPS of $0.99-$1.02 and FFO of $6.89-$6.92 per diluted share. This outlook compares to analyst estimates of $0.51 for next quarter revenue and full-year sales projections of $3.47 billion. The company's guidance reflects management's confidence in the portfolio's ability to generate stable cash flows despite ongoing market challenges in the office sector.

For more detailed earnings information and analyst estimates, visit the BXP earnings page.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any particular security or investment strategy. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.