Why Is Boston Properties (BXP) Down 6% Since Last Earnings Report?

It has been about a month since the last earnings report for Boston Properties (BXP). Shares have lost about 6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Boston Properties due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for BXP, Inc. before we dive into how investors and analysts have reacted as of late.

BXP’s Q4 FFO & Revenues Miss Estimates, Higher Expenses Hurt

BXP reported a fourth-quarter 2025 FFO per share of $1.76, which missed the Zacks Consensus Estimate of $1.80. Moreover, the reported figure fell 1.7% year over year.

BXP’s quarterly results reflected higher expenses impacting the performance, though revenues improved year over year. BXP also issued its guidance for 2026 FFO per share.

Quarterly lease revenues were $809.2 million, up 1.4% year over year. The Zacks Consensus Estimate was pegged at $814.7 million. Total revenues increased 2.2% from the prior-year quarter to $877.1 million.

Quarter in Detail

BXP’s rental revenues (excluding termination income) for the office portfolio came in at $810.3 million, which rose 1.7% year over year. For the hotel & residential segment, the metric aggregated $17.6 million, indicating a 1.4% decrease year over year. On a consolidated basis, BXP’s rental revenues (excluding termination income) came in at $827.9 million, up 1.6% year over year.

BXP’s share of the same-property NOI on a cash basis (excluding termination income) totaled $454.2 million, which increased 1.3% from the prior-year quarter.

Its share of EBITDAre (on a cash basis), as of Dec. 31, 2025, was $461.6 million, down 3.1% from $476.4 million as of Dec. 31, 2024.

BXP’s in-service properties occupancy increased 70 basis points (bps) sequentially to 86.7%, though it declined 80 bps year over year.

However, rental expenses rose 5.1% to $339.7 million, and general and administrative expenses surged 16.3% to $37.8 million.

Portfolio Activity

In line with its strategic asset sales plan highlighted on September's Investor Day, BXP completed the sale of four land parcels for a gross sales price totaling $141.3 million in the fourth quarter of 2025. The company also sold two residential projects for a gross sales price of $407.5 million. The office REIT disposed of non-strategic offices worth a gross sales price of $341.5 million.

BXP also acquired 2100 M Street in Washington, DC, for $55 million in the fourth quarter of 2025. The company plans to demolish and redevelop the asset into an approximately 320,000-square-foot premium workplace.

Balance Sheet Position

BXP exited the fourth quarter of 2025 with cash and cash equivalents of $1.48 billion, up from $861.1 million as of Sept. 30, 2025.

BXP’s share of net debt to EBITDAre, annualized, was 7.86 as of Dec. 31, 2025, down from 8.21 as of Sept. 30, 2025.

2026 Guidance by BXP

BXP projects FFO per share for the first quarter of 2026 to be in the range of $1.56-$1.58. For 2026, FFO per share is expected in the band of $6.88-$7.04.

BXP estimates the change in its share of the same-property NOI on a cash basis (excluding termination income) to be within 0.50% for 2026. The average in-service portfolio occupancy is expected in the band of 87.5-88.5%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Boston Properties has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. 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 these revisions indicates a downward shift. It's no surprise Boston Properties has a Zacks Rank #4 (Sell). We expect a below average 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, Prologis (PLD), has gained 10.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Prologis reported revenues of $2.09 billion in the last reported quarter, representing a year-over-year change of +8%. EPS of $1.49 for the same period compares with $1.50 a year ago.

For the current quarter, Prologis is expected to post earnings of $1.48 per share, indicating a change of +4.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Prologis. Also, the stock has a VGM Score of F.

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This article originally published on Zacks Investment Research (zacks.com).

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