BXP Inc (BXP)

Business Description

BXP is one of the largest publicly traded office real estate investment trusts (REITs) in the U.S., primarily focused on developing, owning, and managing premier workplaces. The company's properties are concentrated in six major U.S. gateway markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC . BXP generates revenue mainly through leasing these premier workplaces to clients, emphasizing long-term leases with financially strong clients across diverse market sectors . Additionally, BXP earns revenue from its View Boston observatory at The Prudential Center, hotel operations, and management and development fees from joint ventures and third-party property owners .

Leasing of Premier Workplaces - Generates revenue by leasing office spaces in major U.S. gateway markets, focusing on long-term agreements with financially robust clients .
View Boston Observatory - Includes ticket sales, special events, food and beverage, and merchandise sales at The Prudential Center .
Hotel Operations - Earns revenue from room rentals and other guest services .
Management and Development Fees - Provides management and development services to unconsolidated joint ventures and third-party property owners .

Key Metrics

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Executive Team

Name	Position	Start Date	Short Bio
Owen D. Thomas	Chairman of the Board and Chief Executive Officer	April 2013	Owen D. Thomas has been a director and CEO of Boston Properties, Inc. since April 2013. He has over 35 years of experience in the real estate industry, with previous roles at Morgan Stanley, including CEO of Morgan Stanley Asia Ltd. .
Douglas T. Linde	President	May 2007	Douglas T. Linde has been the President of BXP since May 2007. He joined BXP in January 1997 and has held various positions, including CFO and Treasurer. He has over 37 years of experience in real estate .
Raymond A. Ritchey	Senior Executive Vice President	January 2016	Raymond A. Ritchey has been with BXP since 1980 and has served as Senior Executive Vice President since January 2016. He supports BXP's regional businesses and coordinates leasing and client relationships .
Michael E. LaBelle	Executive Vice President, Chief Financial Officer & Treasurer	January 2016	Michael E. LaBelle has been the EVP, CFO & Treasurer of BXP since January 2016. He oversees finance, accounting, tax, and investor relations, among other responsibilities. He joined BXP in March 2000 .
Bryan J. Koop	Executive Vice President, Boston Region	January 2016	Bryan J. Koop has been the EVP, Boston Region of BXP since January 2016. He oversees BXP's Boston area operations and joined BXP in 1999 .
Rodney C. Diehl	Executive Vice President, West Coast Regions	February 2024	Rodney C. Diehl has been the EVP, West Coast Regions of BXP since February 2024. He oversees operations in the San Francisco Bay Area, Los Angeles, and Seattle regions .
Peter V. Otteni	Executive Vice President, Co-Head of the Washington, DC Region	January 2022	Peter V. Otteni has been with BXP since 2000 and serves as EVP, Co-Head of the Washington, DC Region. He has held various positions at BXP, including VP, Development .
Hilary J. Spann	Executive Vice President, New York Region	September 2021	Hilary J. Spann has been the EVP, New York Region of BXP since September 2021 and became the Head of the New York Region in January 2022. She oversees all activities in New York and Princeton, NJ .
John J. Stroman	Executive Vice President, Co-Head of the Washington, DC Region	January 2022	John J. Stroman has been the EVP, Co-Head of the Washington, DC Region at BXP since January 2022. He oversees leasing, legal, and property management activities for the region .
Donna D. Garesché	Executive Vice President, Chief Human Resources Officer	February 2023	Donna D. Garesché has been with BXP since 2010 and serves as EVP, Chief Human Resources Officer since February 2023. She leads BXP's human capital strategy .
Eric G. Kevorkian	Senior Vice President, Chief Legal Officer & Secretary	June 2022	Eric G. Kevorkian has been the SVP, Chief Legal Officer & Secretary of BXP since June 2022. He oversees legal and risk management departments and has been with BXP since 2003 .
Michael R. Walsh	Senior Vice President, Chief Accounting Officer	May 2016	Michael R. Walsh has been the SVP, Chief Accounting Officer of BXP since May 2016. He oversees financial reporting, property accounting, and tax compliance .

Questions to Ask Management

With leverage expected to remain elevated over the next several quarters due to your development pipeline funding, how are you addressing potential concerns from credit rating agencies, and what measures are you taking to mitigate refinancing risks in a higher interest rate environment?
Given the decline in same-store NOI driven by lower occupancy rates, despite leasing efforts, what specific strategies are you implementing to reverse this trend, and how confident are you in achieving the projected occupancy growth next year?
As operating expenses have increased due to higher utilities and repair and maintenance costs, and are expected to rise further in the third quarter, how are you managing these costs to protect your margins, and what impact do you anticipate on your financial performance for the remainder of the year?
Considering the limited acquisition opportunities in the premier workplace segment and the current bid-ask spread preventing transactions, how do you plan to achieve growth through acquisitions, and are you adjusting your investment criteria to capitalize on potential market dislocations?
With rising construction and capital costs challenging the feasibility of new residential developments and not all projects meeting your target yields, how are you prioritizing these projects, and what alternative strategies are you exploring to achieve the mid-6% yields you're seeking?

Debt Maturity Schedule

Year	Amount Due (in billions)	Debt Type	Interest Rate (%)	% of Total Debt
2025	0.850	Unsecured Senior Notes	3.200	5.2% = (0.850 / 16.2) * 100
2025	0.700	Unsecured Term Loan	6.45	4.3% = (0.700 / 16.2) * 100
2025	0.204	Mortgage Debt (901 New York Avenue)	3.61	1.3% = (0.204 / 16.2) * 100
2026	1.000	Unsecured Senior Notes	3.650	6.2% = (1.000 / 16.2) * 100
2026	1.000	Unsecured Senior Notes	2.750	6.2% = (1.000 / 16.2) * 100
2027	0.750	Unsecured Senior Notes	6.750	4.6% = (0.750 / 16.2) * 100
2028	1.000	Unsecured Senior Notes	4.500	6.2% = (1.000 / 16.2) * 100
2029	0.850	Unsecured Senior Notes	3.400	5.2% = (0.850 / 16.2) * 100
2030	0.700	Unsecured Senior Notes	2.900	4.3% = (0.700 / 16.2) * 100
2031	1.250	Unsecured Senior Notes	3.250	7.7% = (1.250 / 16.2) * 100
2032	0.850	Unsecured Senior Notes	2.550	5.2% = (0.850 / 16.2) * 100
2033	0.850	Unsecured Senior Notes	2.450	5.2% = (0.850 / 16.2) * 100
2034	0.750	Unsecured Senior Notes	6.500	4.6% = (0.750 / 16.2) * 100
2035	0.850	Unsecured Senior Notes	5.750	5.2% = (0.850 / 16.2) * 100

Customer Concentration

Customer	Relationship	Segment	Details
Salesforce.com	Long-term lease occupant	All	2.10% of BXP's in-service portfolio
Biogen	Long-term lease occupant	All	2.00% of BXP's in-service portfolio
Google	Long-term lease occupant	All	1.97% of BXP's in-service portfolio
Fannie Mae	Long-term lease occupant	All	1.68% of BXP's in-service portfolio
Akamai Technologies	Long-term lease occupant	All	1.55% of BXP's in-service portfolio
Snap	Long-term lease occupant	All	1.43% of BXP's in-service portfolio
Microsoft	Long-term lease occupant	All	1.41% of BXP's in-service portfolio
Ropes & Gray	Long-term lease occupant	All	1.27% of BXP's in-service portfolio
Kirkland & Ellis	Long-term lease occupant	All	1.01% of BXP's in-service portfolio
Wellington Management	Long-term lease occupant	All	0.95% of BXP's in-service portfolio
Shearman & Sterling	Long-term lease occupant	All	0.91% of BXP's in-service portfolio
Millennium Management	Long-term lease occupant	All	0.88% of BXP's in-service portfolio
Arnold & Porter Kaye Scholer	Long-term lease occupant	All	0.87% of BXP's in-service portfolio
Marriott	Long-term lease occupant	All	0.87% of BXP's in-service portfolio
WeWork	Long-term lease occupant	All	0.87% of BXP's in-service portfolio
Leidos	Long-term lease occupant	All	0.83% of BXP's in-service portfolio
Blue Cross Blue Shield	Long-term lease occupant	All	0.82% of BXP's in-service portfolio
Bank of America	Long-term lease occupant	All	0.78% of BXP's in-service portfolio
US Government	Long-term lease occupant	All	0.75% of BXP's in-service portfolio
Bain Capital	Long-term lease occupant	All	0.75% of BXP's in-service portfolio

Auditor

Name	Start Date	End Date	Reason for Change
PricewaterhouseCoopers LLP	1997	Present	Current auditor

Latest news

Recent developments and announcements about BXP.

Financial Reporting

Earnings Call

6 days ago

BXP recently released its fourth quarter 2024 earnings call transcript, providing insights into its financial performance and strategic outlook for 2025. Key points from the earnings call include:

Financial Performance: BXP reported total consolidated revenues of $3.4 billion for 2024, with a full year Funds From Operations (FFO) of $1.25 billion or $7.10 per share. The fourth quarter FFO was $1.79 per share, aligning with previous guidance. The company experienced a 4% revenue increase in 2024, driven by new developments coming into service.
Occupancy and Leasing: BXP's occupancy improved by 50 basis points to 87.5% in the fourth quarter, with its premier workplace CBD buildings achieving 90.9% occupancy. The company completed over 2.3 million square feet of leasing in the quarter, marking its most active quarter since 2019.
2025 Guidance: BXP's 2025 guidance anticipates growth from development deliveries and higher fee income, offset by lower termination income and interest income. The company expects a modest decline in FFO for 2025, primarily due to lower interest income from reduced cash balances used to fund developments.
Strategic Initiatives: BXP is focusing on development activities, with several projects expected to contribute to its Net Operating Income (NOI) in 2025. These include fully leased properties like 300 Binney Street and DICK's House of Sport, as well as ongoing lease-ups at Skymark and life science projects in South San Francisco and Waltham.
Market Conditions: The company noted positive absorption in San Francisco for the first time in a while, driven by demand from new technology companies. BXP is optimistic about continued leasing activity across its markets, despite challenges in some areas.
Analyst Questions: Analysts inquired about occupancy guidance, leasing strategies, and the impact of market conditions on BXP's performance. Management highlighted the importance of maintaining leasing momentum and adapting to market dynamics, such as interest rates and tenant demand.

Overall, BXP is navigating a complex market environment with a focus on strategic developments and maintaining strong occupancy levels in its premier workplace properties.

Earnings Report

7 days ago

BXP Fourth Quarter and Full Year 2024 Earnings Results

BXP, Inc. (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, released its earnings results for the fourth quarter and full year 2024 on January 28, 2025. Below are the key highlights:

Financial Performance

Revenue: Increased by 3.6% to $858.6 million in Q4 2024, compared to $828.9 million in Q4 2023.
Net Income: Reported a net loss of $230.0 million (-$1.45 per diluted share) for Q4 2024, primarily due to non-cash impairment charges of $341.3 million related to investments in unconsolidated joint ventures.
Funds from Operations (FFO): Achieved $284.0 million ($1.79 per diluted share) in Q4 2024, slightly down from $286.2 million ($1.82 per diluted share) in Q4 2023.

Full Year 2024 Highlights

Net Income: $14.3 million ($0.09 per diluted share), a significant decline from $190.2 million ($1.21 per diluted share) in 2023, due to the aforementioned impairment charges.
FFO: $1.1 billion ($7.10 per diluted share), consistent with 2023's $1.1 billion ($7.28 per diluted share).

Leasing Activity

Q4 2024: Executed 83 leases totaling over 2.3 million square feet, marking the strongest leasing quarter since Q2 2019.
Full Year 2024: Signed 291 leases covering approximately 5.6 million square feet, with a weighted-average lease term of 9.8 years.
Occupancy: The CBD portfolio was 90.9% occupied and 92.8% leased, while the total portfolio was 87.5% occupied and 89.4% leased.

2025 Guidance

Q1 2025: Projected EPS of $0.33 - $0.35 and FFO of $1.63 - $1.65 per diluted share.
Full Year 2025: Projected EPS of $1.57 - $1.75 and FFO of $6.77 - $6.95 per diluted share.

Key Trends and Insights

The decline in net income for 2024 was driven by non-cash impairment charges related to joint ventures, which are not expected to recur in 2025.
The company’s leasing activity in Q4 2024 was 130% of its historical 10-year average, reflecting strong demand for its premier workplace properties.
BXP’s focus on dynamic urban gateway markets continues to drive its leasing and occupancy performance, with 88% of annualized rental obligations derived from clients in its CBD portfolio.

For further details, BXP will host a conference call on January 29, 2025, at 10:00 AM ET. A replay of the call will be available on the company’s website.

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