A month has gone by since the last earnings report for Boston Properties (BXP). Shares have lost about 3.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Boston Properties due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
BXP Q2 FFO & Revenues Beat Estimates on Occupancy Gains, '26 View Up
BXP reported second-quarter 2026 FFO of $1.78 per share, beating the Zacks Consensus Estimate of $1.71. FFO rose 4.1% from the year-ago period.
Results reflected higher occupancy and same-property NOI growth, which supported the FFO beat. Total portfolio occupancy climbed 100 basis points sequentially to 88.4%.
Lease revenues increased 3.2% year over year to $831.68 million and surpassed the consensus mark of $812.49 million. Total revenues increased 3.1% from the prior-year quarter to $895.7 million.
BXP’s Second Quarter in Detail
BXP’s rental revenues (excluding termination income) for the office portfolio came in at $839.23 million, which rose 3.3% year over year. For the hotel & residential segment, the metric aggregated $18.58 million, indicating a 2.5% increase year over year. On a consolidated basis, BXP’s rental revenues (excluding termination income) came in at $857.82 million, up 3.3% year over year.
BXP's share of same-property NOI, excluding termination income, increased 3.5% year over year to $486.81 million. On a cash basis, the metric improved marginally to $454.97 million.
BXP Posts Strong Leasing Volume
The office REIT executed 106 leases covering approximately 1.8 million square feet, with a weighted-average lease term of 9.9 years. The leasing volume equaled about 129% of BXP's historical 10-year second-quarter average.
Notable commitments included an approximately 148,000-square-foot lease with McDermott Will & Schulte at 343 Madison Avenue. That agreement lifted the project's pre-leased level to 50%. Boston Dynamics also signed an approximately 322,000-square-foot lease at Reservoir Place in Waltham, MA.
BXP Expands Occupancy and Future Commencements
The total portfolio leased rate reached 91.3%, up 40 basis points from the first quarter. The 290-basis-point spread between leased and occupied space represented approximately 1.3 million square feet of future commencements, with about 85% expected before the end of 2026.
The CBD portfolio was 90.7% occupied and 93.6% leased. About 91% of BXP's share of annualized rental obligations came from clients in these urban properties. The addition of the fully occupied 290 Binney Street property contributed to the quarterly occupancy gain, though most of the improvement came from the existing portfolio.
BXP Advances Development Pipeline
BXP fully placed 290 Binney Street in Cambridge, MA, in service during the quarter. The 572,578-square-foot laboratory and life sciences property is fully leased to AstraZeneca.
The company also began redeveloping the approximately 363,000-square-foot Reservoir Place building, which is 89% pre-leased to Boston Dynamics. Separately, BXP formed a joint venture to develop a 359-unit multifamily project in Herndon, VA, retaining a 20% ownership interest and serving as development manager.
BXP Bolsters Project Financing
On July 28, BXP closed a $1.2 billion construction loan for 343 Madison Avenue. The facility carries a four-year initial term and a one-year extension option. Its initial rate is Term SOFR plus 2.50%, declining to Term SOFR plus 2.25% after specified leasing and construction milestones.
Cash and cash equivalents were $493.95 million as of June 30, 2026, compared with $512.78 million as of March 31, 2026.
The company reported an annualized BXP’s share net debt-to-EBITDA ratio of 7.94, down from 8.50 as of March 31, 2026.
BXP Raises Full-Year FFO Outlook
Management projected third-quarter FFO of $1.80-$1.82 per share. BXP raised the midpoint of its full-year 2026 FFO guidance by 5 cents to a range of $6.99-$7.05, citing better-than-projected portfolio performance.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Boston Properties has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Boston Properties has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Boston Properties belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Welltower (WELL), has gained 0.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Welltower reported revenues of $3.54 billion in the last reported quarter, representing a year-over-year change of +39.1%. EPS of $0.61 for the same period compares with $1.28 a year ago.
Welltower is expected to post earnings of $1.64 per share for the current quarter, representing a year-over-year change of +22.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Welltower. Also, the stock has a VGM Score of D.
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This article originally published on Zacks Investment Research (zacks.com).