The quarter broadly met the existing earnings bar, not reset it higher. Adjusted FFO was $1.73 per share, down from $2.33 a year earlier but unchanged from 1Q26, while management kept the 2026 midpoint at $6.40 and narrowed the range to $6.35-$6.45 from $6.30-$6.50 (2026 Guidance; Funds From Operations per Share). With no reliable published quarterly consensus in the filing context, the cleanest benchmark is the company’s prior outlook: earnings were in line, not a beat.
| Metric | 2Q26 | Comparison | Source |
|---|---|---|---|
| Adjusted FFO per share | $1.73 | $2.33 in 2Q25; $1.73 in 1Q26 | (Funds From Operations per Share) |
| Same-property NOI | -10.6% | -8.6% cash basis | (Same Property Performance) |
| Operating occupancy | 86.9% | 87.7% at 3/31/26; 90.8% at 6/30/25 | (Summary of Properties and Occupancy) |
| Net debt / adjusted EBITDA | 7.0x | 6.8x at 3/31/26; 5.9x at 6/30/25 | (Key Credit Metrics) |
| 2026 adjusted FFO guidance | $6.35-$6.45 | $6.30-$6.50 prior range; $6.40 midpoint unchanged | (2026 Guidance) |
The underlying property trend is still the weak point. Same-property NOI fell 10.6%, or 8.6% on a cash basis, as average same-property occupancy dropped to 87.1% from 92.6% a year earlier. Renewal and re-leasing spreads were also negative at -0.7% including straight-line rent and -4.3% on a cash basis (Same Property Performance; Leasing Activity). The company expects 451,450 RSF of 2026 expirations and 1.38 million RSF of 2027 expirations to experience 12-to-24-month downtime, including $100.5 million of annual rental revenue tied to the 2027 group (Contractual Lease Expirations).
Leasing activity improved, but mostly offsets damage already visible rather than changing the near-term picture. Total leasing reached 1.04 million RSF, up 60% from 1Q26, and 1.4 million RSF of executed leases remain vacant pending tenant improvements, representing roughly 4 percentage points of future occupancy and approximately $69 million of annual rental revenue (Earnings Press Release; Occupancy and Leasing Progress). That provides a credible recovery path, but 64% of this space is expected to be occupied by year-end, so the benefit is still partly future-dated.
Balance-sheet execution was constructive, but the current leverage burden remains elevated. Liquidity was $3.6 billion and the amended credit facility is expected to extend maturity to January 2032 while reducing the borrowing spread (Liquidity; Summary of Debt). However, quarter-annualized leverage rose to 7.0x from 6.8x, and the company now expects dispositions and other capital sources to complete in September rather than August, contributing to a $20 million increase in projected 2026 interest expense (Key Credit Metrics; 2026 Guidance). The planned $2.9 billion of capital sources is therefore important to achieving the unchanged 5.6x-6.2x fourth-quarter leverage target.
Net read: operational deterioration is being managed, not reversed. The filing adds useful mitigation—strong leasing volume, a $80 million construction-budget reduction from shifting 3000 Minuteman Road to advanced-technology use, and a $100 million-$600 million reduction in preliminary 2027 construction spending—but it does not improve the current earnings outlook. The result is best classified as in line versus the standing guidance, with mixed implications because capital discipline and liquidity offset continued occupancy, NOI, interest-cost, and leverage pressure.
Read the original 8-K on SEC EDGAR ↗