BXP, Inc. Reports $865.2 Million Revenue with 3.4% Growth, Net Income Declines 23.4%

BXP, Inc. reported a total revenue of $865.2 million for the first quarter of 2025, reflecting a 3.4% increase from $839.4 million in the same period of 2024. The growth was primarily driven by a rise in lease revenue, which increased to $811.1 million from $788.6 million year-over-year. However, net income attributable to BXP, Inc. decreased by 23.4% to $61.2 million, compared to $79.9 million in the prior year, resulting in a diluted earnings per share of $0.39, down from $0.51.

The company's financial performance was impacted by several factors, including a rise in operating expenses, which totaled $616.8 million, up from $593.7 million in the previous year. Notably, depreciation and amortization expenses increased slightly to $220.1 million from $218.7 million. Additionally, BXP experienced a loss from unconsolidated joint ventures of $2.1 million, a significant decline from a gain of $19.2 million in the prior year, contributing to the overall decrease in net income.

Strategically, BXP has been active in its development and investment activities. The company partially placed in-service the Reston Next Retail project in January 2025 and commenced the redevelopment of 1050 Winter Street in March 2025, which is fully pre-leased. Furthermore, on March 5, 2025, BXP acquired a 19.46% interest in a joint venture for the development of 290 Coles Street in Jersey City, New Jersey, with a total estimated investment of approximately $455.8 million.

Operationally, BXP's portfolio consisted of 185 commercial properties, totaling approximately 53.4 million net rentable square feet. The overall occupancy rate for in-service properties was reported at 86.9%, a slight decline from the previous quarter. The company executed 91 leases totaling over 1.1 million square feet during the first quarter, indicating a 25% increase in leasing activity compared to the same period last year. BXP's leasing pipeline remains active, with approximately one million square feet currently under negotiation.

Looking ahead, BXP acknowledges the potential for economic volatility and its impact on leasing demand. The company remains focused on maintaining liquidity and managing leverage while pursuing attractive investment opportunities. BXP's management is optimistic about its ability to navigate the current market conditions, emphasizing its commitment to premier workplaces and the ongoing demand for high-quality office spaces.