The quarter

BXP, the office REIT formerly known as Boston Properties, reported second-quarter results on July 28, 2026. Revenue was $895.7 million, up 3.1% from $868.5 million a year earlier.

Net income attributable to BXP fell to $68.6 million, or $0.43 per diluted share, from $89.0 million and $0.56 a year earlier. Funds from operations went the other way, rising to $283.4 million, or $1.78 per diluted share, from $271.7 million and $1.71.

The company executed approximately 1.8 million square feet of leases in the quarter and reported total portfolio occupancy up 100 basis points. Management attributed part of the leasing demand to technology tenants.

Why earnings and cash flow moved apart

Earnings per share came in two cents below the midpoint of prior guidance, and the release ties that to a non-cash impairment of about $0.10 per share on Sumner Square, a Washington, DC asset classified as held for sale.

An impairment of that kind reduces reported net income without reducing cash collected, which is precisely the gap that funds from operations exists to bridge. The same quarter can therefore show earnings down 23% and FFO per share up 4%, and both figures are accurate descriptions of different things.

Across the first half of 2026, BXP recorded $1.77 billion of revenue and $235.5 million of net income, against $206.0 million in the first half of 2025. Property sales in the period generated $150.4 million of gross proceeds and $20.8 million of gains.

Guidance moved up

The company guided third-quarter earnings to $0.50 to $0.52 per share and FFO to $1.80 to $1.82. Full-year 2026 guidance was raised to earnings of $2.14 to $2.24 and FFO of $6.99 to $7.05 per share.

Shares rose 5.61% to $73.89 in after-hours trading following the release, putting the market capitalization near $13.2 billion.

Reading an office REIT in 2026

Analysis: a 100 basis point occupancy gain at a landlord of BXP's size is meaningful, but the sector context matters. Office has spent four years with national vacancy at levels without precedent in the modern series, and the assets that lease are disproportionately the newest and best located. BXP's portfolio is weighted toward exactly that segment, which makes its results a poor proxy for commodity office buildings in secondary locations.

The reporting structure also warrants a note. BXP reports jointly with Boston Properties Limited Partnership under an UPREIT structure in which BXP owns roughly 89.9% of the operating partnership, so net income figures differ depending on which entity is being described. The $68.6 million cited above is attributable to BXP, Inc.

The practical read for anyone watching office values: a large, high-quality landlord is filling space and raising its outlook, while simultaneously writing down an asset it is trying to sell. Both facts belong in the same picture.

The portfolio behind the numbers

As of June 30, 2026, BXP's portfolio, including properties owned through joint ventures, totalled 51.1 million square feet across 164 properties in six markets — Boston, Los Angeles, New York, San Francisco, Seattle and Washington, DC. That total breaks down as 143 office properties, 13 retail properties, seven residential properties (four of them under construction) and one hotel, with six properties overall under construction or redevelopment.

BXP, formerly Boston Properties, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997. It describes itself as the largest publicly traded developer, owner and manager of premier workplaces in the United States and is a member of the S&P 500.

Financing moves either side of earnings

The same day it reported results, BXP said it had secured a $1.2 billion construction loan for its 343 Madison Avenue office development in New York, one of the properties included in the six under construction or redevelopment. Roughly three weeks later, on August 17, 2026, the company priced a $700 million offering of senior unsecured notes.

Taken together with the quarter's results, the two financings show a company simultaneously raising capital for new development while working through the sale of at least one older asset, Sumner Square, that no longer fits its portfolio.