BXP Q2 profit beats expectations on higher occupancy, raises FY outlook

Overview

• US office REIT's Q2 revenue rose 3.1% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations; net income missed estimates

• Company executed 1.8 mln SF of leases, raising occupancy by 100 basis points

Outlook

• BXP sees Q3 2026 EPS of $0.50-$0.52 and FFO of $1.80-$1.82 per diluted share

• Company updates full-year 2026 EPS guidance to $2.14-$2.24 per diluted share

• BXP raises full-year 2026 FFO guidance to $6.99-$7.05 per diluted share

Result Drivers

• LEASING ACTIVITY - Co executed 1.8 mln SF of leases in Q2, about 129% of its 10-yr average for the period, contributing to higher occupancy and revenue

• OCCUPANCY GAINS - Total portfolio occupancy rose 100 basis points from Q1, with most of the increase from gains across the existing portfolio and the addition of a fully occupied property placed in service

• IMPAIRMENT CHARGE - Q2 net income was reduced by a non-cash impairment charge related to the anticipated disposition of Sumner Square in Washington, DC

Company press release: ID:nBwc5rkjMa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for BXP Inc is $69.00, about 0.3% below its July 27 closing price of $69.21

• The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads

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• July 27 - Welltower raises 2026 FFO forecast on senior housing demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)