BXP Inc. (BXP) 2Q26 First Take Occupancy and leasing spreads rise, FY guidance raised, positive SS NOI growth

Equity Research 29 July 2026 | 12:26AM EDT

BXP Inc. (BXP): 2Q26 First Take: Occupancy and leasing spreads rise, FY guidance raised, positive SS NOI growth

BXP reported 2Q26 FFOPS of $1.78, +8.7%/+4.2% vs GS/FactSet consensus of Caitlin Burrows | $1.63/$1.70, and +3.8% y/y. The beat vs our estimate was driven by higher than Goldman Sachs & Co. LLC expected occupancy (88.4% in-service, up 200bps y/y), rental income, recovery Jeremy Kuhl income, JV income, offset by slightly higher interest expense and G&A. BXP had | Goldman Sachs & Co. LLC previously guided to $1.69-$1.71 for 2Q26 FFO, where they indicated the $0.08 beat vs. their estimate was due to higher occupancy and lower operating expenses. Harrison Slater, CFA | Goldman Sachs & Co. LLC FFO guidance: Shailee Lnu | n 3Q26 FFOPS guidance was set at $1.80-$1.82, where the $1.81 midpoint is Goldman Sachs India SPL +4.0% y/y, in line with consensus. n BXP raised the low end of FY FFOPS guidance by 11 cents and the high end by 1 cent (new range of $6.99-$7.05), where the midpoint shifted $0.06 higher, to $7.02 from $6.96 or +90bps, (+2.1% vs our estimate) implying FY FFOPS growth of +2.24%. The shift was driven by better-than-projected portfolio performance.

n BXP raised the low end and high end of FY26 GAAP SS NOI growth guidance by 40 bps/20 bps respectively (new range of 1.80% — 2.60%), where the midpoint shifted 30 bps higher to 2.20% from 1.90%. The shift was driven by strong leasing momentum and faster-than-expected occupancy recovery.

Takeaway: Given the strong leasing, occupancy, and spread numbers, along with the increase in FY guidance and beat on 2Q26 FFOPS vs consensus, we expect BXP could outperform the REIT sector on Wednesday (7/29/2026). Below we review additional key pieces of BXP’s earnings release and topics for the earnings call.

Additional Details Same store NOI (excluding termination income): BXP’s same store NOI growth for the quarter was +3.5%/+0.8% on a GAAP/cash basis (vs -2.0/-0.4% in 1Q26).

n Occupancy: BXP’s total in-service occupancy as of 2Q26 was 88.4%, up +100bps sequentially and +200bps y/y (Exhibit 1), while the leased rate stands at 91.3%. As a result, the SNO spread stands at 290bps, where 85% of the 1.3mn sqft of space is expected to commence in 2026. On a same property basis, occupancy grew y/y by 170bps (also to 88.4%), where Seattle was the only

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Lease volume commenced during 2Q26 totaled just under 2.6mn sqft, where Exhibit 2 shows the total volume was +178% y/y in the quarter and +68.0% y/y on a TTM basis, while 2nd generation space specifically was up 111% for the quarter (Exhibit 2).

n Leases executed in the quarter came in just under 1.8mn sqft, up 56.5% y/y vs 2Q25 and up 10% y/y on a TTM basis (Exhibit 3.

Leasing spreads: BXP reported +1.18%/+1.58% gross/net rent spreads on 2Q26 executed leases for second generation space (1.2mn sqft) across its portfolio, where leasing spreads were negative in San Francisco, Seattle, and DC, but positive in Boston and New York (flat in LA, on low volume).

n With respect to these results, we are interested to hear BXP’s latest views on each market, what conditions led to the pricing outcomes, whether pulling back on price is an effective way to generate leasing volume, and whether these levels of leasing spreads are expected to continue.

Exhibit 1: 1Q26 commentary suggesting that occupancy Exhibit 2: BXP had its largest quarter of leases had troughed continues to be affirmed by the data commenced during the period between 1Q22-2Q26 Occupancy trends across office REITs BXP leases commencing occupancy, square feet (‘000s) and y/y growth rates (quarterly and TTM)

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