The operating result beat where REIT investors focus. Diluted FFO was $1.78 per share, $0.08 above BXP’s guidance midpoint and about $0.07 above the published consensus near $1.71. The beat came from higher occupancy-driven revenue and lower operating expenses, not from a one-time gain. (FFO reconciliation)
| Metric | Q2 2026 | Q2 2025 | Expectation / comparison |
|---|---|---|---|
| Revenue | $895.7M | $868.5M | Published estimate: ~$875.0M |
| Diluted EPS | $0.43 | $0.56 | Consensus: ~$0.46; guidance midpoint: $0.45 (Income Statement) |
| Diluted FFO/share | $1.78 | $1.71 | Consensus: ~$1.71; guidance midpoint: $1.70 (FFO reconciliation) |
| Total portfolio occupancy | 88.4% | — | Up 100 bps from Q1 2026 (Total Portfolio) |
| Total portfolio leased | 91.3% | — | Up 40 bps from Q1 2026 (Total Portfolio) |
| Full-year 2026 EPS guidance | $2.14–$2.24 | Prior midpoint: $2.22 | New midpoint: $2.19, down $0.03 (Guidance reconciliation) |
| Full-year 2026 FFO guidance | $6.99–$7.05 | Prior midpoint: $6.97 | New midpoint: $7.02, up $0.05 (Guidance reconciliation) |
The headline EPS miss is largely accounting-driven, not an operating deterioration. EPS of $0.43 missed both the $0.45 guidance midpoint and the roughly $0.46 consensus because of a $0.10-per-share non-cash impairment tied to the anticipated Sumner Square disposition. Improved revenue and expenses offset $0.08 per share of that charge, leaving the underlying operating result better than the GAAP headline suggests. (Income Statement; Financial Highlights)
Leasing momentum improved the near-term picture. Occupancy rose to 88.4%, with 1.3 million square feet of signed-but-not-yet-recognized leases and roughly 85% expected to commence before year-end 2026. BXP also signed 1.8 million square feet during the quarter, 129% of its historical second-quarter average. That supports the FFO beat and explains why management raised the full-year FFO midpoint despite lowering EPS. (Total Portfolio; Financial Highlights)
The net read is modestly better than expected, with a real EPS caveat. The more relevant REIT cash-earnings metric beat consensus, occupancy moved higher, and full-year FFO guidance increased. Against that, GAAP EPS guidance fell because of the impairment, while the $1.2 billion 343 Madison Avenue construction loan adds project financing and execution exposure rather than immediate earnings. (Guidance reconciliation; Financial Highlights)
Read the original 8-K on SEC EDGAR ↗