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

BXP

28/07/2026 21:18

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
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$895.70 mln
$860.33 mln (8 Analysts)
Q2 EPS
Beat
$0.43
$0.40 (7 Analysts)
Q2 Net Income
Miss
$68.60 mln
$70.66 mln (11 Analysts)
Q2 FFO
 
$283.40 mln
 

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

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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.)