BXP, Inc. (BXP)

CIK: 0001037540. SIC: 6798 Real Estate Investment Trusts. Latest 10-K as of: 2026-02-27.

SIC breadcrumb: Finance, Insurance, And Real Estate > Holding And Other Investment Offices > SIC 6798 Real Estate Investment Trusts

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1037540. Latest filing source: 0001037540-26-000006.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001037540.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-27. Report date: 2025-12-31.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report.

Forward Looking Statements

This Annual Report on Form 10-K, including the documents incorporated by reference herein, contain forward-looking statements within the meaning of the federal securities laws, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with those safe harbor provisions, in each case, to the extent applicable. The forward-looking statements are contained principally, but not only, under the captions “Business — Business and Growth Strategies” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” We caution investors that forward-looking statements are based on current beliefs, expectations of future events and assumptions made by, and information currently available to, our management. When used, the words “anticipate,” “believe,” “budget,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “should,” “will,” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance or occurrences, which may be affected by known and unknown risks, trends, uncertainties and factors that are, in some cases, beyond our control. If one or more of these known or unknown risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may differ materially from those expressed or implied by the forward-looking statements. We caution you that, while forward-looking statements reflect our good-faith beliefs when we make them, they are not guarantees of future performance or occurrences and are impacted by actual events when they occur after we make such statements. Accordingly, investors should use caution in relying on forward-looking statements, which are based on results, trends and assumptions at the time they are made, to anticipate future results or trends.

Some of the risks and uncertainties that may cause actual results to differ materially from those expressed or implied by the forward-looking statements include the following risks and uncertainties, among others:

•volatile or adverse economic, capital markets and political conditions, including continued inflation, elevated interest rates, supply chain disruptions, policy changes related to tariffs and prolonged government shutdowns or disruptions, which may directly or indirectly impact us, our current clients and our prospective clients, including their demand for office space, and the costs and availability of construction materials and the economic returns on our construction and development activities;

•volatile or adverse geopolitical conflicts and dislocations in the credit markets could adversely affect economic conditions and/or restrict our access to cost-effective capital, which could have a material adverse effect on our business opportunities, results of operations and financial condition;

•risks associated with the availability and terms of financing, the use of debt to fund acquisitions and developments or refinance existing indebtedness, including the impact of higher interest rates on the cost and/or availability of financing and the use of forward interest rate contracts and derivatives and the effectiveness of such arrangements;

•general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on attractive terms, sustained changes in client preferences and space utilization, dependence on clients’ financial condition, and competition from other developers, owners and operators of real estate);

•failure to integrate acquisitions and developments successfully;

•risks and uncertainties affecting property development and construction;

•the ability of our joint venture partners to satisfy their obligations;

•risks associated with actual or threatened terrorist attacks;

•costs of compliance with the Americans with Disabilities Act and other similar laws;

•potential liability for uninsured losses and environmental contamination;

•risks associated with climate change and severe weather events, as well as the regulatory efforts intended to reduce the effects of climate change;

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•risks associated with our use of AI and cyber security breaches, incidents and compromises, as well as other significant disruptions of our information technology (IT) networks and related systems, which support our operations and our buildings;

•risks associated with legal proceedings and other claims that could result in substantial monetary damages and other costs;

•risks associated with BXP’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”);

•possible adverse changes in tax and environmental laws;

•the impact of newly adopted accounting principles on our accounting policies and on period-to-period comparisons of financial results;

•risks associated with possible state and local tax audits; and

•risks associated with our dependence on key personnel whose continued service is not guaranteed.

The risks set forth above are not exhaustive. Other sections of this report, including “Part I, Item 1A—Risk Factors,” include additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all risk factors, nor can we assess the impact of all risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not unduly rely on forward-looking statements as a prediction of actual results. Investors should also refer to our Quarterly Reports on Form 10-Q for future periods and Current Reports on Form 8-K as we file them with the SEC, and to other materials we may furnish to the public from time to time through Current Reports on Form 8-K or otherwise, for a discussion of risks and uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements. We expressly disclaim any responsibility to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events, or otherwise, and you should not rely upon these forward-looking statements after the date of this report.

Overview

BXP is one of the largest publicly traded office REITs (based on total market capitalization as of December 31, 2025) in the United States that develops, owns, and manages primarily premier workplaces. Our properties are concentrated in six dynamic gateway markets in the U.S. - Boston, Los Angeles, New York, San Francisco, Seattle and Washington, DC.

We generate revenue and cash primarily by leasing premier workplaces to our clients. We consider premier workplaces to be well-located buildings that are modern structures or have been modernized to compete with newer buildings, are professionally managed and maintained, and offer a number and type of amenities that are in high demand by clients that are focused on the importance of the physical work environment in recruiting and retaining the best and brightest employees. As such, these properties attract creditworthy clients and command upper-tier rental rates in their markets. We do not consider the expression “premier workplaces” a classification of our properties in accordance with any standard listing criteria in the real estate industry. We therefore caution investors that our use and definition of “premier workplaces” may be different than the use and definition of similar expressions and traditional classifications that may be used by other companies.

When making leasing decisions, we consider, among other things, the creditworthiness of the client and the industry in which it conducts business, the length of the lease, the rental rate to be paid at inception and throughout the lease term, the amount of any security deposit or letter of credit posted by the client, the costs of tenant improvement allowances, free rent periods and other landlord concessions, anticipated operating expenses and real estate taxes, the date by which we expect to begin revenue recognition for the lease under GAAP, current and anticipated vacancy in our properties and the market overall (including sublease space), current and expected future demand for the space, the impact of other clients’ expansion rights and general economic factors.

We believe our key competitive advantages are our commitments to the office asset class and to our clients as many competitors have divested from the sector, a strong balance sheet with access to capital in the secured and unsecured debt markets and the private and public equity markets, and the high quality of our portfolio of premier

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workplaces. Our core strategy has always been to develop, acquire and manage premier workplaces in gateway markets with high barriers-to-entry and attractive demand drivers and to focus on executing long-term leases with financially strong clients that are diverse across market sectors. We believe this strategy provides a competitive advantage as our clients are interested in leasing space in vibrant, amenitized and accessible premier workplaces. This interest has accelerated the flight to quality in the office market. Over the past several years, BXP’s experience and performance has diverged from the larger market and media sentiment, as premier workplaces have outperformed the broader office market consistently and substantially in both rental rates achieved and occupancy. We believe this divergence validates our strategy and differentiates BXP from other office companies.

Premier workplaces in our five traditional central business district (“CBD”) markets (Boston, New York, San Francisco, Seattle and Washington, DC) have consistently outperformed the broader office market in those CBDs on several key metrics, including occupancy, net absorption levels, rental rates and landlord concessions. This outperformance is evident in BXP’s portfolio where we derive approximately 90% of our share of annualized rental obligations from predominantly premier workplaces located in CBDs. We define annualized rental obligations as the monthly contractual base rent (excluding percentage rent and rent abatements) and budgeted reimbursements from clients under existing leases as of December 31, 2025, multiplied by twelve. Our share of annualized rental obligations is calculated as the consolidated amount, plus our share of the amount from our unconsolidated joint ventures (calculated based on our economic percentage ownership interest), less our partners’ share of the amount from our consolidated joint ventures (calculated based on the partners’ economic percentage ownership interest). As of December 31, 2025, our CBD assets were 89.8% occupied and 92.5% leased (including vacant space for which we have signed leases that have not yet commenced in accordance with GAAP).

As of December 31, 2025, the weighted-average remaining lease term for (1) our in-place leases, based on square feet, including those signed by our unconsolidated joint ventures but excluding residential units, was approximately 7.9 years, and (2) our 20 largest clients, based on square feet, was approximately 9.8 years. Through year-end 2027, we have relatively low exposure to contractual lease expirations with approximately 7.2% of our share of the square footage of our in-service portfolio expiring.

During the fourth quarter of 2025, BXP continued to successfully execute on the multi-year strategic action plan introduced at our September 2025 Investor Day. The action plan focuses on earnings growth, which we expect will be achieved through a combination of increased occupancy and development deliveries, and reducing leverage through asset sales and retention of cash flow. Our progress reflects steady advancement across each of these key priorities.

Growth in Funds from Operations (“FFO”) per share depends in large part on the success of our leasing activity. Leasing momentum remained strong during the fourth quarter of 2025, as we signed leases for more than 1.8 million square feet.

Consistent with the asset sales program outlined at our September 2025 Investor Day, as of February 20, 2026, BXP completed property sales with an aggregate gross sales price of approximately $1.17 billion. These asset sales enhance balance sheet flexibility and support our capital needs and strategic priorities, and fall into the following categories:

•Land Sales: Multiple land dispositions across our Boston, San Francisco and Washington, DC regions which aggregated a gross sales price of approximately $266.4 million.

•Residential Sales: The sales of Proto in Cambridge, Massachusetts and Signature in Reston, Virginia which aggregated a gross sales price of approximately $407.5 million.

•Non-Strategic Office Sales: The sale of 140 Kendrick Street in Needham, Massachusetts, and BXP’s ownership interests in Gateway Commons in South San Francisco, California and Market Square North in Washington, DC which aggregated a gross sales price of approximately $491.5 million.

Outlook

Leasing conditions across BXP’s portfolio remain constructive. Fourth quarter and full-year 2025 leasing results exceeded expectations, supporting anticipated occupancy gains throughout 2026. While market conditions continue to vary by region, demand remains concentrated in our highest-quality CBD assets, particularly in Midtown Manhattan, the Back Bay of Boston, Reston Town Center, and select submarkets in San Francisco.

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Looking ahead, in-service vacant space leasing and coverage of near-term expirations are expected to be the primary drivers of occupancy and same-store revenue growth. With a manageable level of 2026 expirations, a growing pipeline of active negotiations, and a meaningful number of executed leases scheduled to commence this year, we remain on track to achieve occupancy improvements by year-end 2026, consistent with the targets outlined at our September 2025 Investor Day.

On the supply side, new office construction has effectively halted, improving long-term supply-demand fundamentals across many of our markets. Capital markets sentiment toward the office sector continues to improve, evidenced by increasing private market transaction activity and greater availability of debt and equity capital at more attractive pricing. This backdrop is expected to support both our leasing momentum and continued progress on our strategic asset sales and capital recycling initiatives throughout 2026.

Leasing Activity and Occupancy

Although all of the markets in which we operate still need consistent incremental absorption to constitute a macro recovery, we continue to see pockets of strength where low availability is driving constructive client behavior. As clients choose premier workplaces in sound financial condition with building owners that are committed to their properties for the long term and operated by the best property management teams, we expect to continue to be successful in gaining market share.

In the fourth quarter of 2025, we executed 87 leases totaling more than 1.8 million square feet with a weighted-average lease term of approximately 11.3 years.

At December 31, 2025, BXP’s total in-service portfolio occupancy was 86.7%, an increase of 70 basis points from the third quarter of 2025. BXP’s total portfolio was 89.4% leased (including vacant space for which we have signed leases that have not yet commenced revenue recognition in accordance with GAAP), an increase of 60 basis points from the third quarter of 2025.

An overview of the leasing activity in each of our regions for the three months ended December 31, 2025 is set forth in the table below. Amounts shown are in square feet, except for percentages, and include 100% of the unconsolidated joint venture properties.

Leases commenced (1)

Region

Leases executed (2)

Total

Second generation space vacant 1 Year

Change in second generation cash rents, net (3)

Occupancy

Leased (4)

Boston

363,248 

330,378 

213,655 

15.35 

%

91.9 

%

93.1 

%

Los Angeles

2,971 

9,117 

6,644 

(6.27)

%

86.5 

%

87.0 

%

New York

563,236 

486,371 

374,256 

(3.91)

%

83.8 

%

89.4 

%

San Francisco

368,189 

148,903 

57,133 

(30.47)

%

77.0 

%

79.2 

%

Seattle

4,393 

26,039 

13,105 

(9.51)

%

79.8 

%

81.3 

%

Washington, DC

509,103 

296,353 

234,006 

(15.91)

%

91.7 

%

93.8 

%

Total / Weighted Average

1,811,140 

1,297,161 

898,799 

(5.46)

%

86.7 

%

89.4 

%

__________________

(1)Represents space with signed leases for which lease revenue recognition has commenced in accordance with GAAP during the three months ended December 31, 2025.

(2)Represents leases executed during the three months ended December 31, 2025 for which we either (1) commenced lease revenue recognition in such quarter or (2) will commence lease revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed during the three months ended December 31, 2025 for which we recognized lease revenue in the three months ended December 31, 2025 is 275,420.

(3)Represents the increase (decrease) in net rent (gross rent less operating expenses) under the new leases versus expired leases on the 898,799 square feet of second generation leases that had been occupied within the prior 12 months.

(4)Represents signed leases for which lease revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates.

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The table below details the vacancy and leasing activity in our portfolio, including 100% of the unconsolidated joint ventures, that commenced revenue recognition during the year ended December 31, 2025:

Year ended December 31, 2025

(Square Feet)

Vacant space available at the beginning of the period

6,122,074 

Vacant space from property dispositions/properties taken out of service (1)

(890,984)

Vacant space from properties placed (and partially placed) in-service (2)

590,615 

Leases expiring or terminated during the period

4,832,804 

Total space available for lease

10,654,509 

1st generation leases (3)

366,440 

2nd generation leases with new clients (3)

2,397,971 

2nd generation lease renewals (3)

1,547,971 

Total space leased (3)

4,312,382 

Vacant space available for lease at the end of the period

6,342,127 

Leases executed during the period, in square feet (4)

5,575,629 

Second generation leasing information: (5)

Leases commencing during the period, in square feet

3,945,942 

Weighted Average Lease Term

89 Months

Weighted Average Free Rent Period

195 Days

Total Transaction Costs Per Square Foot (6)

$94.32 

Increase (Decrease) in Gross Rents (7)

(3.41)

%

Increase (Decrease) in Net Rents (8)

(5.41)

%

 __________________

(1)Total square feet from properties taken out of service during the year ended December 31, 2025 consists of 261,046 square feet at Reston Corporate Center, 211,840 square feet at 1000 Winter Street, 201,634 square feet at Reservoir Place, 102,980 square feet at Market Square North, 89,851 square feet at 140 Kendrick Street and 23,633 square feet at 200 Clarendon Street.

(2)Total square feet from properties placed (and partially placed) in-service during the year ended December 31, 2025 consists of 345,570 square feet at 360 Park Avenue South, 162,274 square feet at 1050 Winter Street and 82,771 square feet at Reston Next Office Phase II.

(3)Represents leases for which lease revenue recognition has commenced in accordance with GAAP during the year ended December 31, 2025.

(4)Represents leases executed during the year ended December 31, 2025 for which we either (1) commenced lease revenue recognition in such quarter or (2) will commence lease revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed during the year ended December 31, 2025 for which we recognized lease revenue in the year ended December 31, 2025 is 886,021.

(5)Second generation leases are defined as leases for space that we have previously leased. Of the 3,945,942 square feet of second generation leases that commenced revenue recognition during the year ended December 31, 2025, leases for 3,067,250 square feet were signed in prior periods.

(6)Total transaction costs include tenant improvements and leasing commissions but exclude free rent concessions and other inducements in accordance with GAAP.

(7)Represents the increase (decrease) in gross rent (base rent plus expense reimbursements) under the new leases versus expired leases on the 2,453,253 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

(8)Represents the increase (decrease) in net rent (gross rent less operating expenses) under the new leases versus expired leases on the 2,453,253 square feet of second generation leases that had been occupied within the prior 12 months.

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Investment Activity

In 2025, BXP commenced construction on 343 Madison Avenue in New York City, New York. 343 Madison Avenue will be a highly amenitized, sustainably designed, 46-story, 930,000 square foot premier workplace located on one of the most desirable office development sites in Manhattan with direct access to Grand Central Station. The project is 29% pre-leased as of February 20, 2026, and BXP is in active discussions with other prospective clients.

BXP fully placed three development properties into service in 2025, reflecting continued execution on its development pipeline and the successful delivery of premier workplace assets:

•1050 Winter Street, an approximately 162,000 square foot office building located in the urban edge of Boston, Massachusetts. As of February 20, 2026, the project is 100% leased.

•Reston Next Office Phase II, an approximately 87,000 square foot boutique premier workplace located in Reston, Virginia. As of February 20, 2026, the project is 92% leased.

•360 Park Avenue South, an approximately 448,000 square foot premier workplace located in New York City, New York, in which we have an approximately 71% ownership interest. As of February 20, 2026, the project is 59% leased.

For descriptions of significant transactions that we completed during 2025, see “Item 1. Business—Transactions During 2025.”

Critical Accounting Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to use judgment in the application of accounting policies, including making estimates and assumptions. We base our estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied resulting in a different presentation of our financial statements. From time to time, we evaluate our estimates and assumptions. In the event estimates or assumptions prove to be different from actual results, adjustments are made in subsequent periods to reflect more current information. Our significant accounting policies, which utilize these critical accounting estimates, are described in Note 2 to our Consolidated Financial Statements.

We consider our critical accounting estimates to be those used in the determination of the reported amounts and disclosure related to the following:

•Purchase price allocations,

•Impairment and

•Impairment related to unconsolidated joint ventures.

Each of the above critical accounting estimates is described in more detail below.

Real Estate

Purchase Price Allocations

We assess the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, “above-” and “below-market” leases, leasing and assumed financing origination costs, acquired in-place leases, other identified intangible assets and assumed liabilities (including ground leases)) and allocate the purchase price to the acquired assets and assumed liabilities, including land and buildings as if vacant. We assess fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that we deem appropriate, as well as available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions.

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The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. We also consider an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including (but not limited to) the nature and extent of the existing relationship with the clients, the clients’ credit quality and expectations of lease renewals. Based on our acquisitions to date, our allocation to customer relationship intangible assets has been immaterial.

We record acquired “above-” and “below-market” leases at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in-place lease and (2) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases. Acquired “above-” and “below-market” lease values have been reflected within Prepaid Expenses and Other Assets and Other Liabilities, respectively, in our Consolidated Balance Sheets. Other intangible assets acquired include amounts for in-place lease values that are based on our evaluation of the specific characteristics of each client’s lease. Factors to be considered include estimates of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. In estimating carrying costs, we include real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, we consider leasing commissions, legal and other related expenses.

During the year ended December 31, 2025, we completed the acquisition of 2100 M Street, located in Washington, DC, for a purchase price, including transaction costs, of approximately $55.9 million. This transaction was accounted for as an asset acquisition, and the purchase price was allocated based on the relative fair values of the assets acquired and liabilities assumed (See Note 3 to the Consolidated Financial Statements).

Impairment

Management reviews its long-lived assets for indicators of impairment following the end of each quarter and when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. This evaluation of long-lived assets is dependent on a number of factors, including when there is an event or adverse change in the operating performance of the long-lived asset or a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life or hold period. An impairment loss is recognized if the carrying amount of an asset is not recoverable and exceeds its fair value. The evaluation of anticipated cash flows is subjective and is based in part on assumptions regarding anticipated hold periods, future occupancy, future rental rates, future capital requirements, discount rates and capitalization rates. Any or all of such assumptions could differ materially from actual results in future periods. Because cash flows on properties considered to be “long-lived assets to be held and used” are considered on an undiscounted basis to determine whether an asset may be impaired, our established strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If our hold strategy changes or market conditions otherwise dictate a shorter hold period, an impairment loss may be recognized and such loss could be material. If we determine that an impairment has occurred, the affected assets must be reduced to their fair value. During the year ended December 31, 2025, in conjunction with our strategy to sell non-core assets, we evaluated the consolidated properties approved by BXP’s Board of Directors (or a committee thereof) for sale to third-parties, which resulted in recognized impairment losses of approximately $85.8 million and $82.9 million for BXP and BPLP, respectively (See Note 3 to the Consolidated Financial Statements).

Unconsolidated Joint Ventures

As of December 31, 2025, the net carrying amounts of our investments in unconsolidated joint ventures was approximately $983.7 million, which includes investments with deficit balances aggregating approximately $15.6 million included within Other Liabilities in our Consolidated Balance Sheets.

Impairment

Investments in unconsolidated joint ventures are reviewed for indicators of impairment on a quarterly basis and we record impairment charges when events or circumstances change indicating that a decline in the fair values below the carrying amounts has occurred and such decline is other-than-temporary. This evaluation of the investments in unconsolidated joint ventures is dependent on a number of factors, including the performance of each investment, the intent and ability to retain each investment for a period of time to allow for anticipated recovery in market value, and market conditions. We will record an impairment charge if we determine that a decline in the fair value below the carrying amount of an investment in an unconsolidated joint venture is other-than-temporary. The fair value could be calculated by using a pending offer from a third-party or discounted cash flows, which are

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estimates based, in part, on assumptions regarding future occupancy, future rental rates, future capital requirements, debt interest rates and availability, third party offers, discount rates and capitalization rates that could differ materially from actual results in future periods. Such evaluation of key impairment indicators, including a pending offer from a third-party, resulted in our determination that the decline in value for the joint venture that owns Gateway Commons was other-than-temporary. As a result, during the year ended December 31, 2025, we recognized an other-than-temporary impairment loss on our investment in Gateway Commons of approximately $145.1 million (See Notes 6 and 17 to the Consolidated Financial Statements).

Income Taxes 

Our accounting policies related to income tax are described in Note 2 to our Consolidated Financial Statements.

BXP

The net difference between the tax basis and the reported amounts of BXP’s assets and liabilities was approximately $653.1 million and $1.6 billion as of December 31, 2025 and 2024, respectively, which was primarily related to the difference in basis of contributed property and accrued rental income.

Certain entities included in BXP’s Consolidated Financial Statements are subject to certain state and local taxes. These taxes are recorded as operating expenses in the accompanying Consolidated Financial Statements. 

The following table reconciles GAAP net income attributable to BXP, Inc. to taxable income: 

For the year ended December 31,

2025

2024

2023

(in thousands)

Net income attributable to BXP, Inc.

$

276,800 

$

14,272 

$

190,215 

Straight-line rent and net “above-” and “below-market” rent adjustments

(91,180)

(81,883)

(97,163)

Book/Tax differences from depreciation and amortization

159,300 

183,353 

208,872 

Book/Tax differences from interest expense

2,202 

16,321 

125 

Book/Tax differences on gains/(losses) from capital transactions

223,542 

302,062 

359,063 

Book/Tax differences from stock-based compensation

49,154 

44,480 

51,511 

Tangible Property Regulations

(97,695)

(43,549)

(165,033)

Other book/tax differences, net

77,922 

89,834 

84,985 

Taxable income

$

600,045 

$

524,890 

$

632,575 

BPLP

The net difference between the tax basis and the reported amounts of BPLP’s assets and liabilities was approximately $1.7 billion and $2.7 billion as of December 31, 2025 and 2024, respectively, which was primarily related to the difference in basis of contributed property and accrued rental income.

Certain entities included in BPLP’s Consolidated Financial Statements are subject to certain state and local taxes. These taxes are recorded as operating expenses in the accompanying Consolidated Financial Statements.

The following table reconciles GAAP net income attributable to Boston Properties Limited Partnership to taxable income:

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Table of Contents

For the year ended December 31,

2025

2024

2023

(in thousands)

Net income attributable to Boston Properties Limited Partnership

$

321,104 

$

23,480 

$

219,771 

Straight-line rent and net “above-” and “below-market” rent adjustments

(101,761)

(91,593)

(108,679)

Book/Tax differences from depreciation and amortization

168,142 

193,493 

216,434 

Book/Tax differences from interest expense

2,457 

18,256 

140 

Book/Tax differences on gains/(losses) from capital transactions

265,037 

337,792 

406,738 

Book/Tax differences from stock-based compensation

54,858 

49,755 

57,617 

Tangible Property Regulations

(109,032)

(48,713)

(184,593)

Other book/tax differences, net

82,036 

98,403 

92,866 

Taxable income

$

682,841 

$

580,873 

$

700,294 

Results of Operations

At December 31, 2025 and 2024, we owned or had joint venture interests in a portfolio of 179 and 185 commercial real estate properties, respectively (in each case, the “Total Property Portfolio”). As a result of changes within our Total Property Portfolio, the financial data presented below shows significant changes in revenue and expenses from period-to-period. Accordingly, we do not believe that our period-to-period financial data with respect to the Total Property Portfolio provides a complete understanding of our operating results. Therefore, the comparison of operating results for the years ended December 31, 2025 and 2024 shows separately the changes attributable to the properties that were owned by us and in-service throughout each period compared (the “Same Property Portfolio”) and the changes attributable to the properties included in the Acquired, Placed In-Service, In or Held for Development or Redevelopment or Sold Portfolios.

In our analysis of operating results, particularly to make comparisons of Net Operating Income (“NOI”) between periods more meaningful, it is important to provide information for properties that were in-service and owned by us throughout each period presented. We refer to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by us and in-service through the end of the latest period presented as our Same Property Portfolio. The Same Property Portfolio therefore excludes properties acquired, placed in-service or in or held for development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented.

NOI is a non-GAAP financial measure equal to net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership, as applicable, the most directly comparable GAAP financial measures, plus (1) net income attributable to noncontrolling interests, interest expense, loss from early extinguishment of debt, impairment losses, loss on sales-type lease, loss from unconsolidated joint ventures, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts and corporate general and administrative expense less (2) unrealized gain (loss) on non-real estate investments, gains from investments in securities, interest and other income (loss), gains on sales of real estate, direct reimbursements of payroll and related costs from management services contracts and development and management services revenue. We use NOI internally as a performance measure and believe it provides useful information to investors regarding our results of operations and financial condition because, when compared across periods, it reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. Similarly, interest expense may be incurred at the property level even though the financing proceeds may be used at the corporate level (e.g., used for other investment activity). In addition, depreciation and amortization expense, because of historical cost accounting and useful life estimates, may distort operating performance measures at the property level. NOI presented by us may not be comparable to NOI reported by other REITs or real estate companies that define NOI differently.

We believe that in order to understand our operating results, NOI should be examined in conjunction with net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership as presented in our Consolidated Financial Statements. NOI should not be considered as a substitute for net income attributable

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to BXP, Inc. or net income attributable to Boston Properties Limited Partnership (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.

Gains on sales of real estate, impairment losses and depreciation expense may differ between BXP and BPLP as a result of previously applied acquisition accounting by BXP for the issuance of common stock in connection with non-sponsor redemptions of common units of limited partnership interest of BPLP (“OP Units”). This accounting resulted in a step-up of the real estate assets at BXP that was allocated to certain properties. The difference between the real estate assets of BXP as compared to BPLP for certain properties having an allocation of the real estate step-up will result in a corresponding difference in depreciation expense, impairment losses and gains on sales of real estate upon the sale of these properties. For additional information see the Explanatory Note that immediately follows the cover page of this Annual Report on Form 10-K.

Results of Operations for the Years Ended December 31, 2025 and 2024

This section of this Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 27, 2025.

Net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership increased by approximately $262.5 million and $297.6 million, respectively, for the year ended December 31, 2025 compared to 2024, as set forth in the following tables and for the reasons discussed below under the heading “Comparison of the year ended December 31, 2025 to the year ended December 31, 2024” within “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

The following are reconciliations of (1) Net Income Attributable to BXP, Inc. to NOI and (2) Net Income Attributable to Boston Properties Limited Partnership to NOI for the years ended December 31, 2025 and 2024. For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see page 60.

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BXP

Year ended December 31,

2025

2024

Increase/

(Decrease)

%

Change

(in thousands)

Net Income Attributable to BXP, Inc.

$

276,800 

$

14,272 

$

262,528 

1,839.46 

%

Net Income Attributable to Noncontrolling Interests:

Noncontrolling interest—common units of the Operating Partnership

32,014 

2,400 

29,614 

1,233.92 

%

Noncontrolling interests in property partnerships

75,181 

67,516 

7,665 

11.35 

%

Net Income

383,995 

84,188 

299,807 

356.12 

%

Other Expenses:

Add:

Interest expense

653,138 

645,117 

8,021 

1.24 

%

Loss from early extinguishment of debt

338 

— 

338 

100.00 

%

Impairment losses

85,803 

13,615 

72,188 

530.21 

%

Loss on sales-type lease

2,490 

— 

2,490 

100.00 

%

Loss from unconsolidated joint ventures

103,560 

343,177 

(239,617)

(69.82)

%

Other Income:

Less:

Unrealized gain (loss) on non-real estate investments

(346)

546 

(892)

(163.37)

%

Gains from investments in securities

5,481 

4,416 

1,065 

24.12 

%

Interest and other income (loss)

35,784 

60,199 

(24,415)

(40.56)

%

Gains on sales of real estate

176,732 

602 

176,130 

29,257.48 

%

Other Expenses:

Add:

Depreciation and amortization expense

912,088 

887,191 

24,897 

2.81 

%

Transaction costs

2,678 

1,597 

1,081 

67.69 

%

Payroll and related costs from management services contracts

16,383 

16,488 

(105)

(0.64)

%

General and administrative expense

168,789 

159,983 

8,806 

5.50 

%

Other Revenue:

Less:

Direct reimbursements of payroll and related costs from management services contracts

16,383 

16,488 

(105)

(0.64)

%

Development and management services revenue

36,579 

28,060 

8,519 

30.36 

%

Net Operating Income (“NOI”)

$

2,058,649 

$

2,041,045 

$

17,604 

0.86 

%

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BPLP

Year ended December 31,

2025

2024

Increase/

(Decrease)

%

Change

(in thousands)

Net Income Attributable to Boston Properties Limited Partnership

$

321,104 

$

23,480 

$

297,624 

1,267.56 

%

Net Income Attributable to Noncontrolling Interests:

Noncontrolling interests in property partnerships

75,181 

67,516 

7,665 

11.35 

%

Net Income

396,285 

90,996 

305,289 

335.50 

%

Other Expenses:

Add:

Interest expense

653,138 

645,117 

8,021 

1.24 

%

Loss from early extinguishment of debt

338 

— 

338 

100.00 

%

Impairment losses

82,890 

13,615 

69,275 

508.81 

%

Loss on sales-type lease

2,490 

— 

2,490 

100.00 

%

Loss from unconsolidated joint ventures

103,560 

343,177 

(239,617)

(69.82)

%

Other Income:

Less:

Unrealized gain (loss) on non-real estate investments

(346)

546 

(892)

(163.37)

%

Gains from investments in securities

5,481 

4,416 

1,065 

24.12 

%

Interest and other income (loss)

35,784 

60,199 

(24,415)

(40.56)

%

Gains on sales of real estate

179,322 

602 

178,720 

29,687.71 

%

Other Expenses:

Add:

Depreciation and amortization expense

905,301 

880,383 

24,918 

2.83 

%

Transaction costs

2,678 

1,597 

1,081 

67.69 

%

Payroll and related costs from management services contracts

16,383 

16,488 

(105)

(0.64)

%

General and administrative expense

168,789 

159,983 

8,806 

5.50 

%

Other Revenue:

Less:

Direct reimbursements of payroll and related costs from management services contracts

16,383 

16,488 

(105)

(0.64)

%

Development and management services revenue

36,579 

28,060 

8,519 

30.36 

%

Net Operating Income (“NOI”)

$

2,058,649 

$

2,041,045 

$

17,604 

0.86 

%

Comparison of the year ended December 31, 2025 to the year ended December 31, 2024

The table below shows selected operating information for the Same Property Portfolio and the Total Property Portfolio. The Same Property Portfolio consists of 142 properties totaling approximately 40.0 million net rentable square feet, excluding unconsolidated joint ventures. The Same Property Portfolio includes properties acquired or placed in-service on or prior to January 1, 2024 and owned and in service through December 31, 2025. The Total Property Portfolio includes the effects of the other properties either acquired, placed in-service, in or held for development or redevelopment after January 1, 2024 or disposed of on or prior to December 31, 2025. This table includes a reconciliation from the Same Property Portfolio to the Total Property Portfolio by also providing information for the years ended December 31, 2025 and 2024 with respect to the properties that were acquired, placed in-service, in or held for development or redevelopment, or sold.

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Same Property Portfolio

Properties Acquired Portfolio

Properties

Placed In-Service

Portfolio

Properties in or Held for Development or Redevelopment Portfolio

Properties Sold Portfolio

Total Property Portfolio

2025

2024

Increase/

(Decrease)

%

Change

2025

2024

2025

2024

2025

2024

2025

2024

2025

2024

Increase/

(Decrease)

%

Change

(dollars in thousands)

Rental Revenue: (1)

Lease Revenue (Excluding Termination Income)

$

3,033,905 

$

2,990,375 

$

43,530 

1.46 

%

$

31,755 

$

31,687 

$

74,989 

$

28,904 

$

14,990 

$

38,844 

$

21,257 

$

23,300 

$

3,176,896 

$

3,113,110 

$

63,786 

2.05 

%

Termination Income

11,344 

8,699 

2,645 

30.41 

%

— 

— 

— 

— 

— 

7,174 

— 

— 

11,344 

15,873 

(4,529)

(28.53)

%

Lease Revenue

3,045,249 

2,999,074 

46,175 

1.54 

%

31,755 

31,687 

74,989 

28,904 

14,990 

46,018 

21,257 

23,300 

3,188,240 

3,128,983 

59,257 

1.89 

%

Parking and Other

138,749 

130,429 

8,320 

6.38 

%

1,539 

1,408 

12 

102 

(73)

1,175 

311 

342 

140,538 

133,456 

7,082 

5.31 

%

Total Rental Revenue (1)

3,183,998 

3,129,503 

54,495 

1.74 

%

33,294 

33,095 

75,001 

29,006 

14,917 

47,193 

21,568 

23,642 

3,328,778 

3,262,439 

66,339 

2.03 

%

Real Estate Operating Expenses

1,248,591 

1,209,073 

39,518 

3.27 

%

13,328 

12,340 

18,172 

10,212 

19,430 

21,808 

9,360 

9,933 

1,308,881 

1,263,366 

45,515 

3.60 

%

Net Operating Income (Loss), Excluding Residential and Hotel

1,935,407 

1,920,430 

14,977 

0.78 

%

19,966 

20,755 

56,829 

18,794 

(4,513)

25,385 

12,208 

13,709 

2,019,897 

1,999,073 

20,824 

1.04 

%

Residential Net Operating Income (2)

7,281 

7,495 

(214)

(2.86)

%

— 

— 

— 

— 

— 

— 

17,074 

18,541 

24,355 

26,036 

(1,681)

(6.46)

%

Hotel Net Operating Income (2)

14,397 

15,936 

(1,539)

(9.66)

%

— 

— 

— 

— 

— 

— 

— 

— 

14,397 

15,936 

(1,539)

(9.66)

%

Net Operating Income (Loss)

$

1,957,085 

$

1,943,861 

$

13,224 

0.68 

%

$

19,966 

$

20,755 

$

56,829 

$

18,794 

$

(4,513)

$

25,385 

$

29,282 

$

32,250 

$

2,058,649 

$

2,041,045 

$

17,604 

0.86 

%

_______________

(1)Rental Revenue is equal to Revenue less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Revenue per the Consolidated Statements of Operations, excluding the residential and hotel revenue that is noted below. We use Rental Revenue internally as a performance measure and in calculating other non-GAAP financial measures (e.g., NOI), which provide investors with information regarding our performance that is not immediately apparent from the most directly comparable GAAP measures and allows investors to compare operating performance between periods.

(2)For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see page 60. Residential Net Operating Income for the year ended December 31, 2025 and 2024 is comprised of Residential Revenue of $50,543 and $49,508 less Residential Expenses of $26,188 and $23,472, respectively. Hotel Net Operating Income for the year ended December 31, 2025 and 2024 is comprised of Hotel Revenue of $49,996 and $51,224 less Hotel Expenses of $35,599 and $35,288, respectively, per the Consolidated Statements of Operations.

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Table of Contents

Same Property Portfolio

Lease Revenue (Excluding Termination Income)

Lease revenue (excluding termination income) from the Same Property Portfolio increased by approximately $43.5 million for the year ended December 31, 2025 compared to 2024. The increase was a result of our average revenue per square foot increasing by approximately $1.70, contributing approximately $57.3 million, partially offset by approximately $13.8 million due to our average occupancy decreasing from 89.1% to 88.7%.

Termination Income

Termination income increased by approximately $2.6 million for the year ended December 31, 2025 compared to 2024.

Termination income for the year ended December 31, 2025 related to 14 clients across the Same Property Portfolio and totaled approximately $11.3 million.

Termination income for the year ended December 31, 2024 related to 29 clients across the Same Property Portfolio and totaled approximately $8.7 million.

Parking and Other Revenue

Parking and other revenue increased by approximately $8.3 million for the year ended December 31, 2025 compared to 2024. Parking and other revenue increased by approximately $1.8 million and $6.5 million, respectively. The increase in parking revenue was primarily due to an increase in monthly parking. The increase in other revenue was primarily associated with an increase in insurance proceeds.

Real Estate Operating Expenses

Real estate operating expenses from the Same Property Portfolio increased by approximately $39.5 million, or 3.3%, for the year ended December 31, 2025 compared to 2024, due primarily to increases in (1) repairs and maintenance of approximately $18.7 million, or 9.2%, (2) utilities of approximately $17.8 million, or 14.1%, and (3) other real estate operating expenses of approximately $3.0 million, or 0.3%. The increase in repairs and maintenance was primarily in the New York region. The increase in utilities was primarily in the Boston region.

Properties Acquired Portfolio

The table below lists the properties acquired between January 1, 2024 and December 31, 2025. Rental revenue and real estate operating expenses increased by approximately $0.2 million and $1.0 million, respectively, for the year ended December 31, 2025 compared to 2024, as detailed below.

Square Feet

Rental Revenue

Real Estate Operating Expenses

Name

Date acquired

2025

2024

Change

2025

2024

Change

(dollars in thousands)

901 New York Avenue

January 8, 2024

524,021 

$

33,294 

$

33,095 

$

199 

$

13,328 

$

12,340 

$

988 

Properties Placed In-Service Portfolio

The table below lists the properties that were placed in-service or partially placed in-service between January 1, 2024 and December 31, 2025. Rental revenue and real estate operating expenses from our Properties Placed In-Service Portfolio increased by approximately $46.0 million and $8.0 million, respectively, for the year ended December 31, 2025 compared to 2024, as detailed below.

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Quarter Initially Placed In-Service

Quarter Fully Placed In-Service

Rental Revenue

Real Estate Operating Expenses

Name

Square Feet

2025

2024

Change

2025

2024

Change

(dollars in thousands)

180 CityPoint

Third Quarter, 2023

Third Quarter, 2024

329,195 

$

15,973 

$

14,558 

$

1,415 

$

6,878 

$

5,996 

$

882 

103 CityPoint

Fourth Quarter, 2023

Fourth Quarter, 2024

112,842 

3 

3 

— 

1,639 

871 

768 

760 Boylston Street

Second Quarter, 2024

Second Quarter, 2024

118,000 

9,597 

6,991 

2,606 

1,135 

786 

349 

Reston Next Office Phase II

Third Quarter, 2024

Third Quarter, 2025

86,629 

230 

12 

218 

398 

57 

341 

300 Binney Street

Fourth Quarter, 2024

Fourth Quarter, 2024

239,908 

46,720 

7,212 

39,508 

6,450 

1,052 

5,398 

Reston Next Retail (1)

First Quarter, 2025

N/A

30,000 

— 

— 

— 

70 

— 

70 

1050 Winter Street

Second Quarter, 2025

Third Quarter, 2025

162,274 

2,478 

230 

2,248 

1,602 

1,450 

152 

1,078,848 

$

75,001 

$

29,006 

$

45,995 

$

18,172 

$

10,212 

$

7,960 

_____________

(1)On January 16, 2026, Reston Next Retail was fully placed in-service.

Properties in or Held for Development or Redevelopment Portfolio

The table below lists the properties that were in or held for development or redevelopment between January 1, 2024 and December 31, 2025. Rental revenue and real estate operating expenses from our Properties in or Held for Development or Redevelopment Portfolio decreased by approximately $32.3 million and $2.4 million, respectively, for the year ended December 31, 2025 compared to 2024, as detailed below.

Date Commenced Held for Development / Redevelopment

Rental Revenue

Real Estate Operating Expenses

Name

Square Feet

2025

2024

Change

2025

2024

Change

(dollars in thousands)

Held for Development or Redevelopment (1)

Lexington Office Park

March 31, 2023

167,000 

$

985 

$

967 

$

18 

$

1,676 

$

1,681 

$

(5)

Shady Grove Innovation District (2)

March 31, 2024

129,000 

2 

102 

(100)

487 

730 

(243)

1000 & 1100 Winter Street (3)

December 31, 2025

567,000 

10,492 

22,380 

(11,888)

8,549 

8,903 

(354)

Kingstowne One

September 30, 2024

154,000 

959 

2,010 

(1,051)

1,307 

1,324 

(17)

Reston Corporate Center

January 1, 2025

261,000 

13 

12,591 

(12,578)

2,019 

3,742 

(1,723)

Reservoir Place (4)

March 31, 2025

361,000 

2,466 

9,143 

(6,677)

4,368 

5,167 

(799)

1,639,000 

14,917 

47,193 

(32,276)

18,406 

21,547 

(3,141)

Redevelopment

171 Dartmouth Street

March 28, 2024

N/A

— 

— 

— 

1,024 

261 

763 

— 

— 

— 

— 

1,024 

261 

763 

1,639,000 

$

14,917 

$

47,193 

$

(32,276)

$

19,430 

$

21,808 

$

(2,378)

_____________

(1)These properties are no longer considered “in-service” because each property’s occupied percentage is less than 50% and we anticipate a future development/redevelopment of the property. A property will be considered held for development or redevelopment until the last client has vacated the property and the property is no longer revenue producing.

(2)This portion of Shady Grove Innovation District is comprised of two buildings, 2098 Gaither Road and 15825 Shady Grove Road.

(3)Rental revenue for the year ended December 31, 2024 includes approximately $6.5 million of termination income.

(4)Reservoir Place is an approximately 526,000 square foot office building, of which approximately 165,000 square feet remains in-service. Rental revenue for the year ended December 31, 2024 includes approximately $0.7 million of termination income.

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Properties Sold Portfolio

The table below lists the properties we sold between January 1, 2024 and December 31, 2025. Rental revenue from our Properties Sold Portfolio decreased by approximately $1.2 million and real estate operating expenses increased by approximately $1.8 million for the year ended December 31, 2025 compared to 2024, as detailed below.

Rental Revenue

Real Estate Operating Expenses

Name

Date Sold

Property Type

Square Feet

2025

2024

Change

2025

2024

Change

(dollars in thousands)

Office/Land

17 Hartwell Avenue (1)

June 27, 2025

Office

30,000 

$

(4)

$

608 

$

(612)

$

215 

$

452 

$

(237)

Almaden Boulevard

October 17, 2025

Land

N/A

310 

339 

(29)

406 

493 

(87)

Land Parcels at Broad Run

December 1, 2025

Land

N/A

— 

— 

— 

43 

48 

(5)

3625 Peterson Way

December 11, 2025

Land

N/A

2,317 

2,384 

(67)

858 

1,112 

(254)

140 Kendrick Street

December 17, 2025

Office

409,200 

18,945 

20,311 

(1,366)

7,838 

7,828 

10 

Total Office/Land

439,200 

21,568 

23,642 

(2,074)

9,360 

9,933 

(573)

Residential

Proto Kendall Square

December 18, 2025

Residential

166,700 

12,798 

11,879 

919 

6,123 

3,946 

2,177 

Signature at Reston Town Center

December 19, 2025

Residential

517,800 

18,617 

18,642 

(25)

8,218 

8,034 

184 

Total Residential

684,500 

31,415 

30,521 

894 

14,341 

11,980 

2,361 

1,123,700 

$

52,983 

$

54,163 

$

(1,180)

$

23,701 

$

21,913 

$

1,788 

______________

(1)During the year ended December 31, 2024, this property was removed from our “in-service” properties listing and classified as held for redevelopment (See Notes 3 and 6 to the Consolidated Financial Statements).

Residential Net Operating Income

Net operating income for our residential same properties decreased by approximately $0.2 million for the year ended December 31, 2025 compared to 2024.

The following reflects our occupancy and rate information, by region, for our residential same properties for the year ended December 31, 2025 and 2024.

Average Monthly Rental Rate (1)

Average Rental Rate Per Occupied Square Foot

Average Physical Occupancy (2)

Average Economic Occupancy (3)

Region

2025

2024

Change (%)

2025

2024

Change (%)

2025

2024

Change (%)

2025

2024

Change (%)

Boston

$

4,685 

$

4,420 

6.0 

%

$

5.20 

$

4.94 

5.3 

%

97.5 

%

95.6 

%

2.0 

%

97.2 

%

94.5 

%

2.9 

%

San Francisco

$

3,025 

$

3,013 

0.4 

%

$

3.82 

$

3.81 

0.3 

%

90.9 

%

89.0 

%

2.1 

%

89.1 

%

87.1 

%

2.3 

%

_____________  

(1)Average Monthly Rental Rate is calculated as the average of the quotients obtained by dividing (A) rental revenue as determined in accordance with GAAP, by (B) the number of occupied units for each month within the applicable fiscal period.

(2)Average Physical Occupancy is defined as (1) the average number of occupied units divided by (2) the total number of units, expressed as a percentage.

(3)Average Economic Occupancy is defined as (1) total possible revenue less vacancy loss divided by (2) total possible revenue, expressed as a percentage. Total possible revenue is determined by valuing average occupied units at contract rates and average vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant units at their Market Rents, Average Economic Occupancy takes into account the fact that units of different sizes and locations within a residential property have different economic impacts on a residential property’s total possible gross revenue. Market Rents used by us in calculating Economic Occupancy are based on the current market rates set by the managers of our residential properties based on their experience in renting their residential property’s units and publicly available market data. Actual market rents and trends in such rents for a region as reported by others may vary materially from Market Rents used by us. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.

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Hotel Net Operating Income

The Boston Marriott Cambridge hotel had net operating income of approximately $14.4 million for the year ended December 31, 2025, representing a decrease of approximately $1.5 million compared to the year ended December 31, 2024.

The following reflects our occupancy and rate information for the Boston Marriott Cambridge hotel for the year ended December 31, 2025 and 2024.

2025

2024

Change (%)

Occupancy

78.7 

%

77.2 

%

1.9 

%

Average daily rate

$

322.45 

$

331.41 

(2.7)

%

REVPAR

$

253.92 

$

255.73 

(0.7)

%

Other Operating Revenue and Expense Items

Development and Management Services Revenue

Development and management services revenue increased by approximately $8.5 million for the year ended December 31, 2025 compared to 2024. Development services revenue and management services revenue increased by approximately $3.8 million and $4.7 million, respectively. The increase in development services revenue was primarily related to an increase in fees associated with a tenant improvement project in the Boston region. The increase in management services revenue was primarily related to leasing commissions earned from an unconsolidated joint venture and a third-party managed building in the New York region.

General and Administrative Expense

General and administrative expense increased by approximately $8.8 million for the year ended December 31, 2025 compared to 2024 primarily due to increases in compensation expense and other general and administrative expenses of approximately $7.0 million and $1.8 million, respectively. The increase in compensation expense was partially due to an approximately $2.3 million increase in health insurance costs and an approximately $1.1 million increase in the value of our deferred compensation plan.

Wages directly related to the development of rental properties are capitalized and included in real estate assets on our Consolidated Balance Sheets and amortized over the useful lives of the applicable asset or lease term. Capitalized wages for each of the year ended December 31, 2025 and 2024 were approximately $17.0 million and $17.2 million, respectively. These costs are not included in the general and administrative expenses discussed above.

Transaction Costs

Transaction costs increased by approximately $1.1 million for the year ended December 31, 2025 compared to 2024. In general, transaction costs relating to the formation of new joint ventures and the pursuit of other transactions are expensed as incurred.

Depreciation and Amortization Expense

Depreciation and amortization expense increased by approximately $24.9 million for the year ended December 31, 2025 compared to 2024, for BXP and BPLP, as detailed below (in thousands).

Portfolio

BXP

BPLP

2025

2024

Change

2025

2024

Change

Same Property Portfolio

$

853,291 

$

837,603 

$

15,688 

$

846,504 

$

830,795 

$

15,709 

Properties Acquired Portfolio

13,410 

14,622 

(1,212)

13,410 

14,622 

(1,212)

Properties Placed In-Service Portfolio

22,421 

10,283 

12,138 

22,421 

10,283 

12,138 

Properties in or Held for Development or Redevelopment Portfolio

8,819 

9,851 

(1,032)

8,819 

9,851 

(1,032)

Properties Sold Portfolio

14,147 

14,832 

(685)

14,147 

14,832 

(685)

$

912,088 

$

887,191 

$

24,897 

$

905,301 

$

880,383 

$

24,918 

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Direct Reimbursements of Payroll and Related Costs From Management Services Contracts and Payroll and Related Costs From Management Service Contracts

We have determined that amounts reimbursed for payroll and related costs received from third parties in connection with management services contracts should be reflected on a gross basis instead of on a net basis as we have determined that we are the principal under these arrangements. We anticipate that these two financial statement line items will generally offset each other.

Other Income and Expense Items

Loss from Unconsolidated Joint Ventures

For the year ended December 31, 2025 compared to 2024, loss from unconsolidated joint ventures decreased by approximately $239.6 million primarily due to (1) an approximately $196.2 million decrease in the non-cash impairment losses that were recognized at several of our joint ventures and (2) a decrease in depreciation expense as a result of the impairment losses recognized, partially offset by an increase in gains on sales of approximately $32.0 million (See Note 6 to the Consolidated Financial Statements).

Gains on Sales of Real Estate

Gains on sales of real estate increased by approximately $176.1 million and $178.7 million for the year ended December 31, 2025 compared to 2024, for BXP and BPLP, respectively, as detailed below.

Property

Location

Date Disposed

Square Feet

 Gross Sales Price

Net Cash Proceeds

BXP Gain (1)

BPLP Gain (1)

(dollars in thousands)

Land:

17 Hartwell Avenue (2)

Lexington, MA

June 27, 2025

30,000 

$

21,840 

$

21,840 

$

18,390 

$

18,489 

Land Parcels at New Dominion Technology Park

Fairfax County, VA

October 15, 2025

N/A

250 

248 

248 

248 

Almaden Boulevard

San Jose, CA

October 17, 2025

N/A

13,500 

12,659 

124 

124 

Land Parcels at Broad Run

Loudoun County, VA

December 1, 2025

N/A

37,500 

36,613 

35,418 

35,418 

3625 Peterson Way

San Jose, CA

December 11, 2025

N/A

90,000 

78,908 

10,662 

10,662 

30,000 

163,090 

150,268 

64,842 

64,941 

Residential:

Proto Kendall Square

Cambridge, MA

December 18, 2025

166,700 

171,500 

169,413 

53,276 

53,276 

Signature at Reston Town Center

Reston, VA

December 19, 2025

517,800 

236,000 

234,327 

49,584 

49,584 

684,500 

407,500 

403,740 

102,860 

102,860 

Office:

140 Kendrick Street

Needham, MA

December 17, 2025

409,200 

132,000 

128,506 

7,306 

9,796 

409,200 

132,000 

128,506 

7,306 

9,796 

Total Dispositions

1,123,700 

$

702,590 

$

682,514 

$

175,008 

$

177,597 

______________

(1)Excludes approximately $1.7 million of gains for each of BXP and BPLP, which are primarily related to sales that occurred in prior periods. With the exception of Almaden Boulevard, the fair value of the real estate disposed exceeded the carrying value (see “Impairment Losses” below). During the year ended December 31, 2024, gains on sales of real estate related to prior period sales and totaled approximately $0.6 million for BXP and BPLP.

(2)See Notes 3 and 6 to the Consolidated Financial Statements.

Interest and Other Income (Loss)

Interest and other income (loss) decreased by approximately $24.4 million for the year ended December 31, 2025 compared to 2024, due primarily to a decrease in our outstanding cash balances and corresponding lower interest income, an approximately $5.8 million reserve related to the unpaid default interest on one of our Related Party Notes Receivable (See Note 16 to the Consolidated Financial Statements), partially offset by an

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approximately $1.3 million decrease in the current expected credit loss allowance related to the refinancing of the related party note receivable for 3 Hudson Boulevard (See Note 6 to the Consolidated Financial Statements).

Gains from Investments in Securities

Gains from investments in securities for the year ended December 31, 2025 and 2024 related to investments that we have made to reduce our market risk relating to deferred compensation plans that we maintain for BXP’s officers and former non-employee directors. Under their respective deferred compensation plans, eligible officers and non-employee directors are permitted to defer a portion of their current compensation on a pre-tax basis and receive a tax-deferred return on the amounts deferred based on the performance of specific investments selected by participating officers and non-employee directors. In order to reduce our market risk relating to these plans, we typically acquire, in a separate account that is not restricted as to its use, similar or identical investments as those selected by each officer or non-employee director. This enables us to generally match our liabilities to participants under our deferred compensation plans with equivalent assets and thereby limit our market risk. The performance of these investments is recorded as gains from investments in securities. During the years ended December 31, 2025 and 2024, we recognized gains of approximately $5.5 million and $4.4 million, respectively, on these investments. By comparison, our general and administrative expense decreased by approximately $5.5 million and $4.4 million during the years ended December 31, 2025 and 2024, respectively, as a result of decreases in our liability under our deferred compensation plans that was associated with the performance of the specific investments selected by participating officers and former non-employee directors of BXP.

Unrealized Gain (Loss) on Non-Real Estate Investments

We invest in non-real estate investments, which primarily consist of environmentally-focused investment funds. During the years ended December 31, 2025 and 2024, we recognized an unrealized gain (loss) of approximately $(0.3) million and $0.5 million, respectively, due to the observable changes in the fair value of the investments.

Loss on Sales-Type Lease

During the year ended December 31, 2025, we recognized approximately $2.5 million in additional costs, which had previously been contingent, related to a ground lease for land at our Reston Next property located in Reston, Virginia. We entered into the ground lease in 2020 with a third-party hotel developer and amended it in 2022. The amendment resulted in the derecognition of the assets related to the ground lease and the classification of the ground lease as a sales-type lease resulting in the recognition of a gain on sales-type lease of approximately $10.1 million.

Impairment Losses

Impairment losses increased by approximately $72.2 million and $69.3 million for the year ended December 31, 2025 compared to 2024, for BXP and BPLP, respectively. During the year ended December 31, 2025, in conjunction with our strategy to sell non-core assets, we evaluated the properties approved by BXP’s Board of Directors (or a committee thereof) for sale to third-parties which resulted in recognized impairment losses (See Note 2 to the Consolidated Financial Statements), as detailed below (in thousands):

Property

Location

Property Type

BXP

BPLP

2024

Shady Grove - Parcel 1 (1)

Rockville, MD

Land

$

13,615 

$

13,615 

$

13,615 

$

13,615 

2025

Almaden Boulevard

San Jose, CA

Land

$

25,515 

$

25,515 

1330 Connecticut Avenue

Washington, DC

Office

20,358 

17,461 

North First Business Park (2)

San Jose, CA

Office

14,971 

14,955 

Shady Grove – Parcel 3

Rockville, MD

Land

13,913 

13,913 

Springfield Metro Center

Springfield, VA

Land

11,046 

11,046 

$

85,803 

$

82,890 

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____________

(1)Sold on February 5, 2026, see Note 17 to the Consolidated Financial Statements.

(2)Sold on January 14, 2026, see Note 17 to the Consolidated Financial Statements.

Loss From Early Extinguishment of Debt

On March 28, 2025, BPLP amended and restated its revolving credit agreement (See Note 7 to the Consolidated Financial Statements). As a result of the amendment and restatement, during the year ended December 31, 2025, we recognized a loss from early extinguishment of debt of approximately $0.3 million related to unamortized origination costs.

Interest Expense

Interest expense increased by approximately $8.0 million for the year ended December 31, 2025 compared to 2024, as detailed below.

Component

Change in interest expense for the year ended December 31, 2025 compared to December 31, 2024

(in thousands)

Increases to interest expense due to:

Issuance of $850 million in aggregate principal of 5.750% senior notes due 2035 on August 26, 2024

$

31,921 

Unsecured commercial paper

13,833 

Increase in interest due to finance leases

8,242 

Issuance of $1.0 billion in aggregate principal of 2.000% exchangeable senior notes due 2030 on September 29, 2025 (1)

5,111 

Increase in interest associated with unsecured term loans and the unsecured credit facility, net (2)

121 

Total increases to interest expense

59,228 

Decreases to interest expense due to:

Repayment of $850 million in aggregate principal of the 3.200% senior notes due 2025 on January 15, 2025

(26,460)

Mortgage loan financings (2)

(13,209)

Increase in capitalized interest related to development projects

(8,651)

Redemption of $700 million in aggregate principal of 3.800% senior notes due 2024 on February 1, 2024

(2,237)

Other interest expense (excluding senior notes)

(584)

Amortization expense of financing fees

(66)

Total decreases to interest expense

(51,207)

Total change in interest expense

$

8,021 

______________

(1) See Note 7 to the Consolidated Financial Statements.

(2)Includes, if applicable, fair value and swap adjustments (See Note 8 to the Consolidated Financial Statements).

Interest expense directly related to the development of rental properties is capitalized and included in real estate assets on our Consolidated Balance Sheets and amortized over the useful lives of the real estate or lease term. As portions of properties are placed in-service, we cease capitalizing interest on that portion and interest is then expensed. Interest capitalized for the year ended December 31, 2025 and 2024 was approximately $50.6 million and $42.0 million, respectively. These costs are not included in the interest expense referenced above.

At December 31, 2025, our variable rate debt consisted of (1) BPLP’s $2.95 billion unsecured credit facility (“2025 Credit Facility”) and (2) BPLP’s $750.0 million unsecured commercial paper program (“Commercial Paper Program”). The 2025 Credit Facility consists of (1) a revolving line of credit (the “Revolving Facility”) of $2.25 billion and (2) an unsecured term loan facility (the “Term Loan Facility”) of $700.0 million. As of December 31, 2025, there

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were $700.0 million and $750.0 million outstanding under the 2025 Credit Facility and Commercial Paper Program, respectively.

In addition, we have a $100.0 million unsecured term loan facility (“2024 Unsecured Term Loan”) and an aggregate of $800.0 million of mortgage notes collateralized by Santa Monica Business Park and the 325 Main Street, 355 Main Street, 90 Broadway and Cambridge East Garage (also known as Kendall Center Green Garage) properties that bear interest at variable rates, which have all been hedged with interest rate swaps to fix SOFR for all or a portion of the applicable debt term.

For a summary of our consolidated debt as of December 31, 2025 refer to the heading “Liquidity and Capital Resources—Debt” within “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Noncontrolling Interests in Property Partnerships

Noncontrolling interests in property partnerships increased by approximately $7.7 million for the year ended December 31, 2025 compared to 2024, as detailed below.

Property

Noncontrolling Interests in Property Partnerships for the year ended December 31,

2025

2024

Change

(in thousands)

767 Fifth Avenue (the General Motors Building)

$

11,818 

$

12,495 

$

(677)

7 Times Square (1)

9,233 

15,657 

(6,424)

601 Lexington Avenue

10,210 

9,402 

808 

100 Federal Street

12,177 

11,443 

734 

Atlantic Wharf Office Building

16,376 

15,549 

827 

343 Madison Avenue (2)

(1)

(32)

31 

300 Binney Street (3)

14,375 

2,505 

11,870 

290 Binney Street (4)

993 

497 

496 

$

75,181 

$

67,516 

$

7,665 

______________

(1)The decrease was primarily attributable to a decrease in lease revenue from our clients.

(2)On August 27, 2025, we acquired our partner’s 45% ownership interest (See Note 10 to the Consolidated Financial Statements).

(3)Property was fully placed in-service on October 31, 2024.

(4)Property is currently in development.

Noncontrolling Interest—Common Units of the Operating Partnership

For BXP, noncontrolling interest—common units of the Operating Partnership increased by approximately $29.6 million for the year ended December 31, 2025 compared to 2024 due to an increase in allocable income, which was the result of recognizing greater gains on sales of real estate during 2025. Due to our ownership structure, there is no corresponding line item on BPLP’s financial statements.

Liquidity and Capital Resources

General

Our principal liquidity needs for the next twelve months and beyond are to:

•fund normal recurring expenses;

•meet debt service and principal repayment obligations on maturing debt, including:

•$100.0 million of principal outstanding on the 2024 Unsecured Term Loan due September 26, 2026, for which we have two, one-year extension options, subject to customary conditions;

•$1.0 billion of 2.750% unsecured senior notes due October 1, 2026; and

•amounts that become due under the Commercial Paper Program;

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•fund capital calls from our unconsolidated joint venture investments to fund development costs, capital improvements, leasing costs and debt principal repayment;

•fund mezzanine debt obligations;

•fund development and redevelopment costs;

•fund capital expenditures, including major renovations, tenant improvements and leasing costs;

•fund possible acquisitions of properties, either directly or indirectly through the acquisition of equity interests; and

•make the minimum distribution required to enable BXP to maintain its REIT qualification under the Code.

We expect to satisfy these needs using one or more of the following:

•cash flow from operations;

•distributions of cash flows from joint ventures;

•cash and cash equivalent balances;

•borrowings under BPLP’s Revolving Facility, unsecured term loans, short-term bridge facilities and construction loans (which may require guarantees by BPLP);

•proceeds from the sales of real estate and interests in joint ventures owning real estate, including proceeds generated from BXP’s asset sales program;

•long-term secured and unsecured indebtedness (including unsecured exchangeable indebtedness);

•private equity sources, including institutional investors;

•third-party fees generated by our property management, leasing, development and construction businesses; and

•issuances of BXP equity securities and/or preferred or common units of partnership interests in BPLP.

We draw on multiple financing sources to fund our long-term capital needs. We use BPLP’s 2025 Credit Facility primarily as a bridge facility to fund acquisition opportunities, refinance outstanding indebtedness, fund short-term development costs and for working capital. We also use BPLP’s 2025 Credit Facility to backstop the Commercial Paper Program. Although we may seek to fund our development projects with construction loans, which may require guarantees by BPLP, the source of financing for each particular project ultimately depends on several factors, including, among others, the project’s size and duration, whether the project is funded and owned by a joint venture, the extent of pre-leasing, our available cash and access to cost effective capital at the given time.

We seek to maximize income from our existing properties by maintaining quality standards for our properties that promote high occupancy rates and permit increases in rental rates while reducing client turnover and controlling operating expenses. Our sources of revenue also include third-party fees generated by our property management, leasing, development and construction businesses, interest earned on cash deposits and, from time to time, the sale of assets. We believe these capital sources will continue to meet our short-term liquidity needs. A material adverse change in one or more sources of capital may adversely affect our net cash flows and our ability to repay or refinance existing indebtedness as it matures.

Balance Sheet & Financing Activity

After the repayment at maturity of BPLP’s $1.0 billion unsecured senior notes due on February 1, 2026, as of February 20, 2026, we had available cash of approximately $363.4 million (of which approximately $93.0 million was attributable to our consolidated joint venture partners). Our liquidity and capital resources depend on a wide range of factors, and we believe that our access to capital and our strong liquidity, including the approximately $1.5 billion available under BPLP’s Revolving Facility (after deducting the $750.0 million being used as a backstop for the Commercial Paper Program) as of February 20, 2026, and our available cash are sufficient to fund our near term capital needs on existing development and redevelopment projects, repay our maturing indebtedness when due (if not refinanced or extended), satisfy our REIT distribution requirements (see “REIT Tax Distribution Considerations” below) and still allow us to act opportunistically on attractive investment opportunities.

From January 1, 2025 through February 20, 2026, we completed 14 sales transactions of which our share of the aggregate gross sales price was approximately $1.17 billion. Our share of the net proceeds from the sales from January 1, 2025 through December 31, 2025 was approximately $852.7 million.

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We may seek to enhance our liquidity to fund our current and future development activity, pursue additional attractive investment opportunities and refinance or repay indebtedness. Depending on then-current interest rates, the overall conditions in the public and private debt and equity markets, and our existing and expected leverage at the time, we may decide to access one or more of these capital sources. Doing so may result in greater cash and cash equivalents pending our use of the proceeds.

We have not sold any shares under BXP’s $600.0 million “at the market” equity offering program.

Construction & Redevelopment Activities

As of December 31, 2025, we have eight properties under development or redevelopment. Our share of the estimated total investment for these projects is approximately $3.9 billion, of which approximately $2.5 billion remained to be invested as of December 31, 2025. The commercial space in the pipeline, which excludes 651 Gateway and residential units, was approximately 61% pre-leased as of February 20, 2026.

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The following table presents information on properties under construction/redevelopment as of December 31, 2025 (dollars in thousands):

Financings

Construction/Redevelopment Properties

Estimated Stabilization Date

Location

# of Buildings

Estimated Square Feet

Investment to Date (1)(2)(3)

Estimated Total Investment (1)(2)

Total Available (1)

Outstanding at December 31, 2025

(1)

Estimated Future Equity Requirement (1)(2)(4)

Percentage Leased (5)

Office

725 12th Street (Redevelopment)

Q4 2030

Washington, DC

1

320,000 

$

84,459 

$

349,600 

$

— 

$

— 

$

265,141 

87 

%

343 Madison Avenue

Q2 2031

New York, NY

1

930,000 

304,640 

1,971,000 

— 

— 

1,666,360 

29 

%

Total Office Properties under Construction/Redevelopment

2

1,250,000 

389,099 

2,320,600 

— 

— 

1,931,501 

44 

%

Laboratory/Life Sciences

290 Binney Street (55% ownership)

Q2 2026

Cambridge, MA

1

573,000 

354,590 

508,000 

— 

— 

153,410 

100 

%

(6)

651 Gateway (50% ownership) (Redevelopment)

Q3 2027

South San Francisco, CA

1

327,000 

134,754 

167,100 

— 

— 

32,346 

N/A

(7)

Total Laboratory/Life Sciences Properties under Construction/Redevelopment

2

900,000 

489,344 

675,100 

— 

— 

185,756 

100 

%

Residential

17 Hartwell Avenue (312 units) (20% ownership)

Q2 2028

Lexington, MA

1

288,000 

11,494 

35,900 

19,747 

— 

4,659 

— 

%

17 Hartwell Avenue - Retail

—

2,100 

— 

— 

— 

— 

— 

— 

%

121 Broadway Street (439 units)

Q2 2029

Cambridge, MA

1

492,000 

274,681 

597,800 

— 

— 

323,119 

— 

%

290 Coles Street (670 Units) (19.46% ownership)

Q3 2029

Jersey City, NJ

1

547,000 

20,707 

88,700 

56,400 

— 

11,593 

— 

%

(8)

290 Coles Street - Retail

—

13,000 

— 

— 

— 

— 

— 

— 

%

Total Residential Properties under Construction

3

1,342,100

306,882 

722,400 

76,147 

— 

339,371 

— 

%

Retail

Reston Next Retail

Q4 2026

Reston, VA

1

30,000 

27,477 

31,600 

— 

— 

4,123 

70 

%

(9)

Total Retail Properties under Construction

1

30,000 

27,477 

31,600 

— 

— 

4,123 

70 

%

Total Properties under Construction/Redevelopment

8

3,522,100 

$

1,212,802 

$

3,749,700 

$

76,147 

$

— 

$

2,460,751 

61 

%

(10)

___________  

(1)Represents our share.

(2)Each of Investment to Date, Estimated Total Investment and Estimated Future Equity Requirement represent our share of acquisition expenses, as applicable, and reflect our share of the estimated net revenue/expenses that we expect to incur prior to stabilization of the project, including any amounts actually received or paid through December 31, 2025.

(3)Includes approximately $124.3 million of unpaid but accrued construction costs and leasing commissions.

(4)Excludes approximately $124.3 million of unpaid but accrued construction costs and leasing commissions.

(5)Represents percentage leased as of February 20, 2026, including leases with future commencement dates. Percentage leased excludes 651 Gateway which was sold on January 2, 2026.

(6)The Estimated Total Investment reflects our 55% share of joint venture costs related to 290 Binney Street.  In addition, we have the sole obligation to construct an underground electrical vault for an estimated gross cost of $183.9 million. We have entered into a contract to sell the electrical vault to a third-party for a fixed price of $84.1 million upon completion.  The net investment of $99.8 million will be included in our outside basis in 290 Binney Street. We have invested $125.0 million for the vault as of December 31, 2025.

(7)On January 1, 2025, in accordance with our accounting policy, we ceased interest capitalization of our equity method investment. As of December 31, 2025, the joint venture partner, which is also the managing partner, classifies the project as under construction. As such, we continue to reflect the project as under construction. As of December 31, 2025, this development project was 27% placed in-service. On January 2, 2026, we sold our interest in the joint venture that owns Gateway Commons (See Note 17 to the Consolidated Financial Statements).

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(8)On March 5, 2025, we acquired a 19.46% interest in 290 Coles Street. The budget represents our 19.46% ownership of the project budget and financings which includes our share of preferred equity. We contributed $20.0 million of common equity at closing. In addition, we committed to provide up to $65.0 million in preferred equity accruing at a 13.0% IRR. As of December 31, 2025, approximately $29.9 million of preferred equity has been contributed.

(9)On January 16, 2026, this project was fully placed in-service.

(10)Percentage leased excludes 651 Gateway and the residential units.

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Inflation 

We are exposed to inflation risk, as income from long-term leases is the primary source of our cash flows from operations. There are provisions in the majority of our client leases that protect us from, and mitigate the near term risk of, the impact of inflation. These provisions include rent steps and resets to market, reimbursement billings for operating expense pass-through charges, real estate tax and insurance reimbursements on a per-square-foot basis, or in some cases, annual reimbursement of operating expenses above a certain per-square-foot allowance. However, due to the long-term nature of the leases, the rent may not increase frequently enough to fully cover inflation.

REIT Tax Distribution Considerations

Dividend

As a REIT, BXP is subject to a number of organizational and operational requirements, including a requirement that BXP currently distribute at least 90% of its annual taxable income (excluding capital gains and with certain other adjustments). Our policy is for BXP to distribute at least 100% of its taxable income, including capital gains, to avoid paying federal tax. BXP’s Board of Directors will continue to evaluate BXP’s dividend rate in light of our actual and projected taxable income (including gains on sales), liquidity requirements and other circumstances, and there can be no assurance that the future dividends declared by BXP’s Board of Directors will not differ materially from the current quarterly dividend amount.

Holders of common and LTIP units (other than unearned MYLTIP units) of limited partnership interest in BPLP receive the same distribution per unit that is paid per share of BXP common stock.

Sales

To the extent that we sell assets at a gain and cannot efficiently use the proceeds in a tax deferred manner for either our development activities or acquisitions, BXP would, at the appropriate time, decide whether it is better to declare a special dividend, adopt a stock repurchase program, reduce indebtedness or retain the cash for future investment opportunities. Such a decision will depend on many factors including, among others, the timing, availability and terms of development and acquisition opportunities, our then-current and anticipated leverage, the cost and availability of capital from other sources, the price of BXP’s common stock and REIT distribution requirements. At a minimum, we expect that BXP would distribute at least that amount of proceeds necessary for BXP to avoid paying corporate level tax on the applicable gains realized from any asset sales.

From time to time in select cases, whether due to a change in use, structuring issues to comply with applicable REIT regulations or other reasons, we may sell an asset that is held by a taxable REIT subsidiary (“TRS”). Such a sale by a TRS would be subject to federal and local taxes.

Cash Flow Summary

The following summary discussion of our cash flows is based on the Consolidated Statements of Cash Flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

Cash and cash equivalents and cash held in escrows aggregated approximately $1.6 billion and $1.3 billion at December 31, 2025 and 2024, respectively, representing an increase of approximately $222.1 million. The following table sets forth changes in cash flows:

Year ended December 31,

2025

2024

Change

(in thousands)

Net cash provided by operating activities

$

1,245,157 

$

1,234,501 

$

10,656 

Net cash used in investing activities

(644,526)

(1,237,396)

592,870 

Net cash used in financing activities

(378,561)

(274,476)

(104,085)

Our principal source of cash flow is related to the operation of our properties. The weighted-average term of our in-place leases, including leases signed by our unconsolidated joint ventures, excluding residential units, was approximately 7.9 years as of December 31, 2025, with occupancy rates historically in the range of approximately 86% to 92%. Generally, our properties generate a relatively consistent stream of cash flows that provides us with

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resources to pay operating expenses, debt service and fund regular quarterly dividend and distribution payment requirements. In addition, over the past several years, we have raised capital through the sale of some of our properties and through secured and unsecured borrowings.

Cash is used in investing activities to fund acquisitions, development, net investments in unconsolidated joint ventures and maintenance and repositioning capital expenditures. Cash is provided by investing activities from sales of real estate and net proceeds from notes receivables. Cash used in investing activities for the year ended December 31, 2025 and December 31, 2024 is detailed below:

Year ended December 31,

2025

2024

(in thousands)

Acquisitions of real estate (1)

$

(55,864)

$

(35,366)

Construction in progress (2)

(683,750)

(651,346)

Building, pre-development and other capital improvements (3)

(216,687)

(189,667)

Tenant improvements

(338,808)

(258,312)

Proceeds from sales of real estate (4)

682,514 

602 

Acquisition of real estate upon consolidation of unconsolidated joint ventures (net of cash) (5)

— 

6,086 

Capital contributions to unconsolidated joint ventures (6)

(258,752)

(132,096)

Capital distributions from unconsolidated joint ventures (7)

172,662 

28,325 

Investment in non-real estate investments

(3,538)

(2,500)

Issuance of note receivables (including related party) (8)

(22,861)

(3,258)

Proceeds from note receivables (including related party) (8)

80,000 

— 

Investments in securities, net

558 

136 

Net cash used in investing activities

$

(644,526)

$

(1,237,396)

Cash used in investing activities changed primarily due to the following:

(1)On December 15, 2025, we completed the acquisition of 2100 M Street, located in Washington, D.C., for a purchase price, including transaction costs, of approximately $55.9 million. The acquisition was completed with available cash. We intend to redevelop 2100 M Street in the future.

On December 27, 2024, we completed the acquisition of 725 12th Street located in Washington, DC, for a             purchase price, including transaction costs, of approximately $35.4 million. The acquisition was completed with available cash. Following the acquisition, we commenced redevelopment of the property.

(2)Construction in progress for the year ended December 31, 2025 included ongoing expenditures associated with Reston Next Office Phase II, Reston Next Retail and 1050 Winter Street, which were partially or fully placed in-service during the year ended December 31, 2025. In addition, we incurred costs associated with our continued development/redevelopment of 290 Binney Street, 121 Broadway, 725 12th Street and 343 Madison Avenue.

Construction in progress for the year ended December 31, 2024 included ongoing expenditures associated with 760 Boylston Street, 180 CityPoint, 103 CityPoint and 300 Binney Street, which were fully placed in-service during the year ended December 31, 2024. In addition, we incurred costs associated with our continued development/redevelopment of Reston Next Office Phase II that was partially placed in-service, 290 Binney Street, 121 Broadway and 725 12th Street.

(3)Building, pre-development and other capital improvements for the year ended December 31, 2025 and December 31, 2024 included approximately $39.4 million and $47.9 million, respectively, of pre-development expenditures associated with the 343 Madison Avenue project. Beginning July 31, 2025, costs associated with the continued development of 343 Madison Avenue are included within construction in progress.

(4)Proceeds from sales of real estate for the year ended December 31, 2025 consisted of eight transactions (See Note 3 to the Consolidated Financial Statements).

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(5)On January 8, 2024, we completed the acquisition of our joint venture partner’s 50% economic ownership interest in the joint venture that owns 901 New York Avenue, located in Washington, DC, for a gross purchase price of $10.0 million and we acquired net working capital, including cash and cash equivalents of approximately $16.1 million.

(6)Capital contributions to unconsolidated joint ventures for the year ended December 31, 2025 consisted primarily of cash contributions of approximately $102.7 million, $49.9 million, $42.0 million, $21.2 million and $14.8 million to our Dock 72, 290 Coles Street, 360 Park Avenue South, 751 Gateway, and 200 Fifth Avenue joint ventures, respectively. On March 5, 2025, we entered into a new joint venture for the development of 290 Coles Street (See Note 5 to the Consolidated Financial Statements).

Capital contributions to unconsolidated joint ventures for the year ended December 31, 2024 consisted primarily of cash contributions of approximately $62.7 million, $32.1 million, $13.5 million and $11.6 million to our 360 Park Avenue South, Gateway Commons, Platform 16 and Dock 72 joint ventures, respectively.

(7)Capital distributions from unconsolidated joint ventures for the year ended December 31, 2025 consisted of cash distributions totaling approximately $143.5 million and $29.2 million from our 751 Gateway and Beach Cities Media Campus joint ventures, respectively, resulting from excess proceeds from each of the sales.

Capital distributions from unconsolidated joint ventures for the year ended December 31, 2024 consisted primarily of cash distributions from our 360 Park Avenue South joint venture.

(8)On October 17, 2025, our 3 Hudson Boulevard joint venture refinanced its debt and proceeds from the new loans were used to repay the existing $80.0 million related party note receivable. Funding for the mezzanine loan, which has a maximum commitment of $50.0 million, totaled approximately $18.4 million for the year ended December 31, 2025 (See Note 6 to the Consolidated Financial Statements).

Cash used in financing activities for the year ended December 31, 2025 totaled approximately $378.6 million. This amount consisted primarily of the repayment of BPLP’s $850.0 million in aggregate principal amount of its 3.200% unsecured senior notes due January 15, 2025 and the payment of our regular dividends and distributions to our shareholders and unitholders, partially offset by the net proceeds from the issuance of BPLP’s $1.0 billion in aggregate principal amount of its 2.00% unsecured exchangeable senior notes. The unsecured exchangeable senior notes are due October 2030 and net proceeds, including the purchase of the capped call transactions entered into simultaneously with the exchangeable senior notes closing, totaled approximately $940.1 million. Future debt payments are discussed below under the heading “Debt.”

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Capitalization

The following table presents Consolidated Market Capitalization and BXP’s Share of Market Capitalization, as well as the corresponding ratios of Consolidated Debt to Consolidated Market Capitalization and BXP’s Share of Debt to BXP’s Share of Market Capitalization (in thousands, except for percentages):

December 31, 2025

Shares / Units Outstanding

Common Stock Equivalent

Equivalent Value (1)

Common Stock

158,548 

158,548 

$

10,698,819 

Common Operating Partnership Units

18,252 

18,252 

1,231,645 

(2)

Total Equity

176,800 

$

11,930,464 

Consolidated Debt

$

16,609,483 

Add:

BXP’s share of unconsolidated joint venture debt (3)

1,221,666 

Subtract:

Partners’ share of Consolidated Debt (4)

1,364,360 

BXP’s Share of Debt

$

16,466,789 

Consolidated Market Capitalization

$

28,539,947 

BXP’s Share of Market Capitalization

$

28,397,253 

Consolidated Debt/Consolidated Market Capitalization

58.20 

%

BXP’s Share of Debt/BXP’s Share of Market Capitalization

57.99 

%

_______________  

(1)Values are based on the closing price per share of BXP’s common stock on the New York Stock Exchange on December 31, 2025 of $67.48.

(2)Includes long-term incentive plan units (including 2012 OPP Units and 2013 - 2022 MYLTIP Units but excludes the 2023 - 2025 MYLTIP Units and 2025 OPP Units because the performance periods had not ended as of December 31, 2025).

(3)See page 85 for additional information.

(4)See page 83 for additional information.

Consolidated Debt to Consolidated Market Capitalization Ratio is a measure of leverage commonly used by analysts in the REIT sector. We present this measure as a percentage and it is calculated by dividing (A) our consolidated debt by (B) our consolidated market capitalization, which is the market value of our outstanding equity securities plus our consolidated debt. Consolidated market capitalization is the sum of:

(1)     our consolidated debt; plus

(2)     the product of (x) the closing price per share of BXP common stock on December 31, 2025, as reported by the New York Stock Exchange, multiplied by (y) the sum of:

(i)     the number of outstanding shares of common stock of BXP,

(ii)     the number of outstanding OP Units in BPLP (excluding OP Units held by BXP),

(iii)     the number of OP Units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units, and

(iv)     the number of OP Units issuable upon conversion of 2012 OPP Units, and 2013 - 2022 MYLTIP Units that were issued in the form of LTIP Units.

The calculation of consolidated market capitalization does not include LTIP Units issued in the form of Outperformance Awards or MYLTIP Awards unless and until certain performance thresholds are achieved and they are earned. Because their performance periods have not yet ended, the 2023 - 2025 MYLTIP Units and 2025 OPP Units are not included in this calculation as of December 31, 2025.

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We also present BXP’s Share of Market Capitalization and BXP’s Share of Debt/BXP’s Share of Market Capitalization, which are calculated in the same manner, except that BXP’s Share of Debt is utilized instead of our consolidated debt in both the numerator and the denominator. BXP’s Share of Debt is defined as our consolidated debt plus our share of debt from our unconsolidated joint ventures (calculated based upon our ownership percentage), minus our partners’ share of debt from our consolidated joint ventures (calculated based upon the partners’ percentage ownership interests adjusted for basis differentials). Management believes that BXP’s Share of Debt provides useful information to investors regarding our financial condition because it includes our share of debt from unconsolidated joint ventures and excludes our partners’ share of debt from consolidated joint ventures, in each case presented on the same basis. We have several significant joint ventures and presenting various measures of financial condition in this manner can help investors better understand our financial condition and/or results of operations after taking into account our economic interest in these joint ventures.  We caution investors that the ownership percentages used in calculating BXP’s Share of Debt may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both for routine and major decisions), distributions, transferability of interests, financing and guarantees, liquidations and other matters.  Moreover, in some cases we exercise significant influence over, but do not control, the joint venture in which case GAAP requires that we account for the joint venture entity using the equity method of accounting and we do not consolidate it for financial reporting purposes. In other cases, GAAP requires that we consolidate the venture even though our partner(s) own(s) a significant percentage interest.  As a result, management believes that the presentation of BXP’s Share of a financial measure should not be considered a substitute for, and should only be considered with and as a supplement to our financial information presented in accordance with GAAP.

We present these supplemental ratios because our degree of leverage could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes and because different investors and lenders consider one or both of these ratios. Investors should understand that these ratios are, in part, a function of the market price of the common stock of BXP and as such will fluctuate with changes in such price, and they do not necessarily reflect our capacity to incur additional debt to finance our activities or our ability to manage our existing debt obligations. However, for a company like BXP, whose assets are primarily income-producing real estate, these ratios may provide investors with an alternate indication of leverage, so long as they are evaluated along with the ratio of indebtedness to other measures of asset value used by financial analysts and other financial ratios, as well as the various components of our outstanding indebtedness.

For a discussion of our unconsolidated joint venture indebtedness, see “Liquidity and Capital Resources—Investment in Unconsolidated Joint Ventures - Secured Debt” within “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” and for a discussion of our consolidated joint venture indebtedness see “Debt” below.

Debt

For further discussion on the terms of our debt, see Note 7 to the Consolidated Financial Statements. The following table summarizes certain information with respect to our indebtedness outstanding as of December 31, 2025 and 2024 (dollars in thousands).

Interest Rate

Amount

Stated

GAAP (1)

Maturity Date

12/31/2025

12/31/2024

Unsecured Senior Notes (2)

Unsecured Senior Notes (3)

3.200 

%

3.350 

%

January 15, 2025

N/A

$

850,000 

Unsecured Senior Notes (4)

3.650 

%

3.766 

%

February 1, 2026

$

1,000,000 

1,000,000 

Unsecured Senior Notes

2.750 

%

3.495 

%

October 1, 2026

1,000,000 

1,000,000 

Unsecured Senior Notes

6.750 

%

6.924 

%

December 1, 2027

750,000 

750,000 

Unsecured Senior Notes

4.500 

%

4.628 

%

December 1, 2028

1,000,000 

1,000,000 

Unsecured Senior Notes

3.400 

%

3.505 

%

June 21, 2029

850,000 

850,000 

Unsecured Senior Notes

2.900 

%

2.984 

%

March 15, 2030

700,000 

700,000 

Unsecured Senior Notes

3.250 

%

3.343 

%

January 30, 2031

1,250,000 

1,250,000 

Unsecured Senior Notes

2.550 

%

2.671 

%

April 1, 2032

850,000 

850,000 

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Interest Rate

Amount

Stated

GAAP (1)

Maturity Date

12/31/2025

12/31/2024

Unsecured Senior Notes

2.450 

%

2.524 

%

October 1, 2033

850,000 

850,000 

Unsecured Senior Notes

6.500 

%

6.619 

%

January 15, 2034

750,000 

750,000 

Unsecured Senior Notes

5.750 

%

5.842 

%

January 15, 2035

850,000 

850,000 

Total Principal Amount

9,850,000 

10,700,000 

Less: Unamortized discount and deferred financing costs, net

43,900 

54,923 

Carrying Amount

9,806,100 

10,645,077 

Unsecured Exchangeable Senior Notes

2.000 

%

2.496 

%

October 1, 2030

1,000,000 

N/A

Less: Unamortized deferred financing costs

23,737 

N/A

Carrying Amount

976,263 

N/A

Unsecured Commercial Paper (5)

4.24 

%

4.25 

%

Various

750,000 

500,000 

Unsecured Line of Credit (Revolving Credit Facility) (6)

— 

%

— 

%

March 29, 2030

— 

— 

Unsecured Term Loans

2023 Unsecured Term Loan

N/A

N/A

N/A

N/A

700,000 

2024 Unsecured Term Loan (7)

4.73 

%

4.88 

%

September 26, 2026

100,000 

100,000 

Unsecured Term Loan Facility (8)

4.82 

%

4.94 

%

March 30, 2029

700,000 

N/A

Total Principal Amount

800,000 

800,000 

Less: Deferred financing costs and fair value adjustments, net

2,947 

1,187 

Carrying Amount

797,053 

798,813 

Mortgage Notes

767 Fifth Avenue (the General Motors Building) (60% ownership) (2)(9)

3.43 

%

3.64 

%

June 9, 2027

2,300,000 

2,300,000 

Santa Monica Business Park (2)(10)

5.28 

%

5.40 

%

October 8, 2028

200,000 

200,000 

90 Broadway, 325 Main Street, 355 Main Street, and Cambridge East Garage (also known as Kendall Center Green Garage) (2)(11)

6.04 

%

6.27 

%

October 26, 2028

600,000 

600,000 

901 New York Avenue (12)

5.00 

%

5.06 

%

January 5, 2029

198,063 

202,313 

601 Lexington Avenue (55% ownership) (2)

2.79 

%

2.93 

%

January 9, 2032

1,000,000 

1,000,000 

Total Principal Amount

4,298,063 

4,302,313 

Less: Deferred financing costs and fair value adjustments, net

17,996 

25,704 

Carrying Amount

4,280,067 

4,276,609 

Total Consolidated Debt

$

16,609,483 

$

16,220,499 

_______________ 

(1)For the unsecured senior notes, the GAAP rate represents the yield on issuance date including the effects of discounts on the notes, settlements of interest rate contracts and the amortization of financing costs. For all other debt, the GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, the effects of hedging transactions (if any and excluding capped calls classified as equity) and adjustments required under ASC 805 “Business Combinations” to reflect loans and swaps at their fair values (if any).

(2)No principal amounts are due prior to maturity.

(3)This unsecured senior note was repaid at maturity, see Note 7 to the Consolidated Financial Statements.

(4)See Note 17 to the Consolidated Financial Statements.

(5)At December 31, 2025, the weighted average interest rate of the commercial paper notes outstanding was approximately 3.99% per annum and had a weighted-average maturity of 45 days from the date of issuance. At

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February 20, 2026, BPLP had an aggregate of $750.0 million of commercial paper notes outstanding that bore interest at a weighted-average rate of approximately 3.93% per annum and had a weighted-average maturity of 44 days, from the date of issuance.

(6)The unsecured line of credit bears interest at a variable rate of SOFR+0.85% per annum. The 2025 Credit Facility is used as a backstop for the $750.0 million Commercial Paper Program. As such, BPLP intends to maintain, at a minimum, availability under the unsecured line of credit in an amount equal to the amount of unsecured commercial paper notes outstanding. The table below provides the principal indebtedness outstanding and remaining capacity under the unsecured line of credit at December 31, 2025 and February 20, 2026 (dollars in thousands).

December 31, 2025

February 20, 2026

Facility

Outstanding

Remaining Capacity

Outstanding

Remaining Capacity

Unsecured Line of Credit

$

2,250,000 

$

— 

$

2,250,000 

$

— 

$

2,250,000 

Less:

Unsecured Commercial Paper

750,000 

750,000 

Letters of Credit

5,086 

5,253 

Total Remaining Capacity

$

1,494,914 

$

1,494,747 

(7)The 2024 Unsecured Term Loan bears interest at a variable rate of SOFR+1.05% per annum. BPLP entered into an interest rate swap contract to fix SOFR at a weighted-average fixed interest rate of 3.6775% per annum for the period commencing on April 7, 2025 and ending on April 6, 2026. Stated interest rate reflects the weighted-average fixed interest rate based on the interest rate swap contracts plus 1.05% per annum. The 2024 Unsecured Term Loan has two one-year extension options, subject to certain conditions.

(8)The Unsecured Term Loan Facility bears interest at a variable rate of SOFR+0.95% per annum and has two six-month extension options, each subject to customary conditions.

(9)In connection with the refinancing of the loan, we guaranteed the consolidated entity’s obligation to fund various reserves for tenant improvement costs and allowances, leasing commissions and free rent obligations in lieu of cash deposits. As of December 31, 2025, the maximum funding obligation under the guarantee was approximately $6.4 million. We earn a fee from the joint venture for providing the guarantee and have an agreement with our partners to reimburse the joint venture for their share of any payments made under the guarantee.

(10)The mortgage loan bears interest at a variable rate of Daily Simple SOFR+1.60% per annum. BPLP entered into an interest rate swap contract to fix Daily Simple SOFR at a weighted-average fixed interest rate of 3.6775% per annum for the period commencing on April 7, 2025 and ending on April 6, 2026. Stated interest rate reflects the weighted-average fixed interest rate based on the interest rate swap contracts plus 1.60% per annum.

(11)The mortgage loan bears interest at a variable rate of Daily Compounded SOFR+2.25% per annum. BPLP entered into three interest rate swap contracts with notional amounts aggregating $600.0 million to fix Daily Compounded SOFR at a weighted-average fixed interest rate of 3.7925% for the period commencing on December 15, 2023 and ending on October 26, 2028. The stated interest rate reflects the weighted average fixed interest rate based on the interest rate swap contracts plus 2.25% per annum.

(12)The loan has a one-year extension option remaining, subject to certain conditions.

The following table lists our mortgage notes, net outstanding and our partners’ share, based on their respective ownership percentage, from our consolidated joint ventures as of December 31, 2025 (dollars in thousands).

Carrying Amount

Properties

100%

Partners’ Share

Wholly-owned

901 New York Avenue

$

197,682 

N/A

Santa Monica Business Park

199,302 

N/A

90 Broadway, 325 Main Street, 355 Main Street, and Cambridge East Garage (also known as Kendall Center Green Garage)

596,213 

N/A

Subtotal

993,197 

N/A

Consolidated Joint Ventures

767 Fifth Avenue (the General Motors Building) (60% ownership) (1)

2,294,992 

$

918,015 

601 Lexington Avenue (55% ownership)

991,878 

446,345 

Subtotal

3,286,870 

1,364,360 

Total

$

4,280,067 

$

1,364,360 

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_______________ 

(1)The partners’ share of the carrying amount has been adjusted for basis differentials.

The following table lists the contractual aggregate principal payments of mortgage notes payable at December 31, 2025:

Principal Payments

 Year

(in thousands)

2026

$

4,357 

2027

2,304,580 

2028

804,815 

2029

184,311 

2030

— 

Thereafter

1,000,000 

$

4,298,063 

The table below provides the debt statistics of our outstanding consolidated indebtedness at December 31, 2025 and December 31, 2024.  

December 31, 2025

December 31, 2024

Weighted Average

Weighted Average

 % of Total Debt

 Stated Rates

GAAP Rates (1)

Maturity (years)

% of Total Debt

Stated Rates

GAAP Rates (1)

Maturity (years)

Floating Rate Debt (2)

8.71 

%

4.52 

%

4.58 

%

1.6 

7.39 

%

5.34 

%

5.47 

%

0.2 

Fixed Rate Debt (3)

91.29 

%

3.85 

%

3.99 

%

3.9 

92.61 

%

3.89 

%

4.11 

%

4.6 

Consolidated Debt

100.00 

%

3.91 

%

4.04 

%

3.7 

100.00 

%

4.00 

%

4.21 

%

4.3 

Unsecured Debt

74.23 

%

3.94 

%

4.06 

%

4.0 

73.63 

%

4.11 

%

4.23 

%

4.4 

Secured Debt

25.77 

%

3.80 

%

3.99 

%

2.8 

26.37 

%

3.68 

%

4.17 

%

3.8 

Consolidated Debt

100.00 

%

3.91 

%

4.04 

%

3.7 

100.00 

%

4.00 

%

4.21 

%

4.3 

_______________

(1)The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, the effects of hedging transactions (if any and excluding capped calls classified as equity) and adjustments required under ASC 805 “Business Combinations” to reflect loans and swaps at their fair values (if any).

(2)The unsecured commercial paper notes are included in our floating rate debt statistics. At December 31, 2025, the weighted average interest rate of the unsecured commercial paper notes outstanding was approximately 3.99% per annum and had a weighted-average maturity of 45 days from the date of issuance.

(3)The Fixed Rate Debt includes the effects of hedging transactions.

Derivative Instruments and Hedging Activities

As of December 31, 2025, we had $900.0 million of interest rate swaps outstanding, where hedge accounting was elected, with a fair value of approximately $(8.3) million. On April 8, 2025, we entered into an interest rate swap contract with a notional amount of $300.0 million to replace $300.0 million of interest rate swaps that expired on April 1, 2025. For a description of these interest rate swaps, see Note 8 to the Consolidated Financial Statements.

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Investment in Unconsolidated Joint Ventures - Secured Debt

We have investments in unconsolidated joint ventures with our effective ownership interests ranging from approximately 19% to approximately 71%. Fourteen of these ventures have mortgage indebtedness. We exercise significant influence over, but do not control, these entities. As a result, we account for them using the equity method of accounting. See also Note 6 to the Consolidated Financial Statements. At December 31, 2025, the aggregate carrying amount of debt, including both our and our partners’ share, incurred by these ventures was approximately $2.9 billion (of which our proportionate share is approximately $1.2 billion). The table below summarizes the outstanding debt of these joint venture properties at December 31, 2025. In addition to other guarantees specifically noted in the table, we have agreed to customary environmental indemnifications and nonrecourse carve-outs (e.g., guarantees against fraud, misrepresentation and bankruptcy) as well as the completion of development projects on certain of the loans. 

Properties

Nominal % Ownership

Stated Interest Rate

GAAP Interest Rate (1)

Term of Variable Rate + Spread

Stated Principal Amount

Deferred Financing Costs, Net

Carrying Amount

Carrying Amount (Our share)

Maturity Date

(dollars in thousands)

360 Park Avenue South

71.11 

%

6.25 

%

6.56 

%

Term SOFR+2.50%

$

220,000 

$

(1,204)

$

218,796 

$

155,586 

(2)(3)(4)

December 13, 2027

1265 Main Street

50.00 

%

3.77 

%

3.84 

%

N/A

32,703 

(167)

32,536 

16,268 

January 1, 2032

Colorado Center

50.00 

%

3.56 

%

3.59 

%

N/A

550,000 

(285)

549,715 

274,857 

(2)

August 9, 2027

The Hub on Causeway - Podium & 100 Causeway Street

50.00 

%

5.73 

%

5.94 

%

N/A

465,000 

(5,010)

459,990 

229,995 

(2)

April 9, 2031

Hub50House

50.00 

%

4.43 

%

4.51 

%

SOFR+1.35%

185,000 

(882)

184,118 

92,059 

(2)(5)

June 17, 2032

7750 Wisconsin Avenue (Marriott International Headquarters)

50.00 

%

5.49 

%

5.54 

%

N/A

249,663 

(1,237)

248,426 

124,213 

February 27, 2035

Safeco Plaza

33.67 

%

4.82 

%

6.21 

%

SOFR+2.32%

250,000 

(227)

249,773 

84,098 

(2)(6)

September 1, 2026

500 North Capitol Street, NW

30.00 

%

6.83 

%

7.16 

%

N/A

105,000 

(121)

104,879 

31,436 

(2)(7)

June 5, 2026

200 Fifth Avenue

26.69 

%

4.34 

%

5.60 

%

Term SOFR+1.41%

599,134 

(4,876)

594,258 

154,502 

(8)

November 24, 2028

3 Hudson Boulevard

25.00 

%

9.02 

%

10.27 

%

Term SOFR+5.25%

108,000 

(3,614)

104,386 

26,097 

(2)(3)(9)

(10)

November 7, 2027

3 Hudson Boulevard

25.00 

%

11.02 

%

11.02 

%

Term SOFR+7.25%

18,353 

— 

18,353 

4,588 

(3)(9)

November 7, 2027

Skymark - Reston Next Residential

20.00 

%

5.87 

%

6.19 

%

SOFR+2.00%

140,000 

(165)

139,835 

27,967 

(2)(3)(11)

May 13, 2026

17 Hartwell Avenue

20.00 

%

6.75 

%

6.87 

%

N/A

— 

— 

— 

— 

(2)(12)

July 10, 2030

290 Coles Street

19.46 

%

N/A

N/A

Term SOFR+2.50%

— 

— 

— 

— 

(2)(3)(13)

March 5, 2029

Total

$

2,922,853 

$

(17,788)

$

2,905,065 

$

1,221,666 

_______________ 

(1)The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing costs, which includes mortgage recording fees, the effects of hedging transactions (if any) and adjustments required under ASC 805 “Business Combinations” to reflect loans at their fair values (if any).

(2)The loan requires interest only payments with a balloon payment due at maturity.

(3)The loan includes certain extension options, subject to certain conditions.

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(4)The joint venture entered into an interest rate cap agreement with a financial institution to limit its exposure to increases in Term SOFR rate to a cap of 5.00% per annum on a notional amount of $220.0 million through January 15, 2026. On January 6, 2026, the joint venture entered into a new interest rate cap agreement that continued to cap Term SOFR rate at 5.00% per annum on a notional amount of $220.0 million through January 15, 2027.

(5)The joint venture entered into interest rate swap contracts with notional amounts aggregating $185.0 million through April 10, 2032, resulting in a fixed rate of approximately 4.432% per annum through the expiration of the interest rate swap contracts.

(6)The loan bears interest at a variable rate equal to the greater of (x) 2.35% or (y) SOFR plus 2.32% per annum. The joint venture entered into an interest rate cap agreement with a financial institution to limit its exposure to increases in the SOFR rate at a cap of 2.50% per annum on a notional amount of $250.0 million through September 1, 2026.

(7)The indebtedness consists of (x) a $70.0 million mortgage loan payable (Note A) which bears interest at a fixed rate of 6.23% per annum, and (y) a $35.0 million mortgage loan payable (Note B) which bears interest at a fixed rate of 8.03% per annum. We provided $10.5 million of the Note B mortgage financing to the joint venture. Our portion of the loan is reflected as Related Party Notes Receivable, Net on our Consolidated Balance Sheets.

(8)The joint venture entered into interest rate swap contracts with notional amounts aggregating $600.0 million through June 2028, resulting in a fixed rate of approximately 4.34% per annum through the expiration of the interest rate swap contracts.

(9)The indebtedness consists of (x) a $108.0 million senior loan with a third-party lender and (y) a mezzanine loan provided by us with a maximum commitment of $50.0 million. As of December 31, 2025, we have funded approximately $18.4 million of the mezzanine loan. The loan is reflected as Related Party Note Receivables, Net on our Consolidated Balance Sheets.

(10)The joint venture entered into an interest rate cap agreement with a financial institution to limit its exposure to increases in Term SOFR rate to a cap of 6.00% per annum on a notional amount of $108.0 million through November 9, 2027.

(11)The construction financing has a borrowing capacity of $140.0 million.

(12)No amounts have been drawn under the $98.7 million construction loan.

(13)No amounts have been drawn under the $225.0 million construction loan.

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Funds from Operations

Pursuant to the revised definition of FFO adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), we calculate FFO for each of BXP and BPLP by adjusting net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership (computed in accordance with GAAP), respectively, for gains (or losses) from sales of properties, including a change in control, impairment losses on depreciable real estate consolidated on our balance sheet, impairment losses on our investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and our share of real estate-related depreciation and amortization. FFO is a non-GAAP financial measure. We believe the presentation of FFO, combined with the presentation of required GAAP financial measures, improves the understanding of operating results of REITs among the investing public and helps make comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for understanding and comparing our operating results because, by excluding gains and losses related to sales or a change in control of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies.

Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently. We believe that in order to facilitate a clear understanding of our operating results, FFO should be examined in conjunction with net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership as presented in our Consolidated Financial Statements. FFO should not be considered as a substitute for net income attributable to BXP, Inc. or net income attributable to Boston Properties Limited Partnership (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.  

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BXP

The following table presents a reconciliation of net income attributable to BXP, Inc. to FFO attributable to BXP, Inc. for the years ended December 31, 2025, 2024 and 2023:

Year ended December 31,

2025

2024

2023

(in thousands)

Net income attributable to BXP, Inc.

$

276,800 

$

14,272 

$

190,215 

Add:

Noncontrolling interest—common units of the Operating Partnership

32,014 

2,400 

22,548 

Noncontrolling interests in property partnerships

75,181 

67,516 

78,661 

Net income

383,995 

84,188 

291,424 

Add:

Depreciation and amortization

912,088 

887,191 

830,813 

Noncontrolling interests in property partnerships’ share of depreciation and amortization

(86,109)

(76,660)

(73,027)

BXP’s share of depreciation and amortization from unconsolidated joint ventures

65,446 

81,904 

101,199 

Corporate-related depreciation and amortization

(2,479)

(1,710)

(1,810)

Non-real estate depreciation and amortization

8,521 

8,520 

(1,681)

Loss on sales-type lease

2,490 

— 

— 

Impairment losses

85,803 

13,615 

— 

Impairment losses included within loss from unconsolidated joint ventures

145,133 

341,338 

272,603 

Less:

Gain on sale / consolidation included within loss from unconsolidated joint ventures

53,685 

21,696 

64,168 

Gains on sales of real estate

176,732 

602 

517 

Gain on sales-type lease included within loss from unconsolidated joint ventures

— 

— 

1,368 

Unrealized gain (loss) on non-real estate investments

(346)

546 

239 

Noncontrolling interests in property partnerships

75,181 

67,516 

78,661 

Funds from Operations (FFO) attributable to the Operating Partnership common unitholders (including BXP, Inc.)

1,209,636 

1,248,026 

1,274,568 

Less:

Noncontrolling interest—common units of the Operating Partnership’s share of funds from operations

120,601 

127,548 

130,771 

Funds from Operations attributable to BXP, Inc.

$

1,089,035 

$

1,120,478 

$

1,143,797 

Our percentage share of Funds from Operations—basic

90.03 

%

89.78 

%

89.74 

%

Weighted average shares outstanding—basic

158,330 

157,468 

156,863 

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The following tables presents a reconciliation of net income attributable to BXP, Inc. to Diluted FFO attributable to BXP, Inc. for income (numerator) and shares/units (denominator) for the years ended December 31, 2025, 2024 and 2023:

Year ended December 31,

2025

2024

2023

(in thousands)

Net income attributable to BXP, Inc.

$

276,800 

$

14,272 

$

190,215 

Add:

Noncontrolling interest—common units of the Operating Partnership

32,014 

2,400 

22,548 

Noncontrolling interests in property partnerships

75,181 

67,516 

78,661 

Net income

383,995 

84,188 

291,424 

Add:

Depreciation and amortization

912,088 

887,191 

830,813 

Noncontrolling interests in property partnerships’ share of depreciation and amortization

(86,109)

(76,660)

(73,027)

BXP’s share of depreciation and amortization from unconsolidated joint ventures

65,446 

81,904 

101,199 

Corporate-related depreciation and amortization

(2,479)

(1,710)

(1,810)

Non-real estate depreciation and amortization

8,521 

8,520 

(1,681)

Loss on sales-type lease

2,490 

— 

— 

Impairment losses

85,803 

13,615 

— 

Impairment losses included within loss from unconsolidated joint ventures

145,133 

341,338 

272,603 

Less:

Gain on sale / consolidation included within loss from unconsolidated joint ventures

53,685 

21,696 

64,168 

Gains on sales of real estate

176,732 

602 

517 

Gain on sales-type lease included within loss from unconsolidated joint ventures

— 

— 

1,368 

Unrealized gain (loss) on non-real estate investments

(346)

546 

239 

Noncontrolling interests in property partnerships

75,181 

67,516 

78,661 

Funds from Operations (FFO) attributable to the Operating Partnership common unitholders (including BXP, Inc.)

1,209,636 

1,248,026 

1,274,568 

Effect of Dilutive Securities:

Stock based compensation

— 

— 

— 

Diluted FFO

1,209,636 

1,248,026 

1,274,568 

Less:

Noncontrolling interest—common units of the Operating Partnership’s share of diluted FFO

120,238 

127,299 

130,516 

Diluted FFO attributable to BXP, Inc. (1)

$

1,089,398 

$

1,120,727 

$

1,144,052 

 _______________

(1)BXP’s share of diluted Funds from Operations was 90.06%, 89.80% and 89.76% for the years ended December 31, 2025, 2024 and 2023, respectively.

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Year ended December 31,

2025

2024

2023

shares/units (in thousands)

Basic Funds from Operations

175,858 

175,390 

174,796 

Effect of Dilutive Securities:

Stock based compensation

539 

325 

338 

Diluted Funds from Operations

176,397 

175,715 

175,134 

Less:

Noncontrolling interest—common units of the Operating Partnership’s share of diluted Funds from Operations

17,528 

17,922 

17,933 

Diluted Funds from Operations attributable to BXP, Inc. (1)

158,869 

157,793 

157,201 

 _______________

(1)BXP’s share of diluted Funds from Operations was 90.06%, 89.80% and 89.76% for the years ended December 31, 2025, 2024 and 2023, respectively.

BPLP

The following table presents a reconciliation of net income attributable to Boston Properties Limited Partnership to FFO attributable to Boston Properties Limited Partnership for the years ended December 31, 2025, 2024 and 2023:

Year ended December 31,

2025

2024

2023

(in thousands)

Net income attributable to Boston Properties Limited Partnership

$

321,104 

$

23,480 

$

219,771 

Add:

Noncontrolling interests in property partnerships

75,181 

67,516 

78,661 

Net income

396,285 

90,996 

298,432 

Add:

Depreciation and amortization

905,301 

880,383 

823,805 

Noncontrolling interests in property partnerships’ share of depreciation and amortization

(86,109)

(76,660)

(73,027)

BXP’s share of depreciation and amortization from unconsolidated joint ventures

65,446 

81,904 

101,199 

Corporate-related depreciation and amortization

(2,479)

(1,710)

(1,810)

Non-real estate depreciation and amortization

8,521 

8,520 

(1,681)

Loss on sales-type lease

2,490 

— 

— 

Impairment losses

82,890 

13,615 

— 

Impairment losses included within loss from unconsolidated joint ventures

145,133 

341,338 

272,603 

Less:

Gain on sale / consolidation included within loss from unconsolidated joint ventures

53,685 

21,696 

64,168 

Gains on sales of real estate

179,322 

602 

517 

Gain on sales-type lease included within loss from unconsolidated joint ventures

— 

— 

1,368 

Unrealized gain (loss) on non-real estate investments

(346)

546 

239 

Noncontrolling interests in property partnerships

75,181 

67,516 

78,661 

Funds from Operations attributable to Boston Properties Limited Partnership (1)

$

1,209,636 

$

1,248,026 

$

1,274,568 

Weighted average shares outstanding—basic

175,858 

175,390 

174,796 

 _______________

(1)Our calculation includes OP Units and vested LTIP Units (including vested 2012 OPP Units and vested 2013 - 2022 MYLTIP Units).

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The following table presents a reconciliation of net income attributable to Boston Properties Limited Partnership to Diluted FFO attributable to Boston Properties Limited Partnership for income (numerator) and shares/units (denominator) for the years ended December 31, 2025, 2024 and 2023:

Year ended December 31,

2025

2024

2023

(in thousands)

Net income attributable to Boston Properties Limited Partnership

$

321,104 

$

23,480 

$

219,771 

Add:

Noncontrolling interests in property partnerships

75,181 

67,516 

78,661 

Net income

396,285 

90,996 

298,432 

Add:

Depreciation and amortization

905,301 

880,383 

823,805 

Noncontrolling interests in property partnerships’ share of depreciation and amortization

(86,109)

(76,660)

(73,027)

BXP’s share of depreciation and amortization from unconsolidated joint ventures

65,446 

81,904 

101,199 

Corporate-related depreciation and amortization

(2,479)

(1,710)

(1,810)

Non-real estate depreciation and amortization

8,521 

8,520 

(1,681)

Loss on sales-type lease

2,490 

— 

— 

Impairment losses

82,890 

13,615 

— 

Impairment losses included within loss from unconsolidated joint ventures

145,133 

341,338 

272,603 

Less:

Gain on sale / consolidation included within loss from unconsolidated joint ventures

53,685 

21,696 

64,168 

Gains on sales of real estate

179,322 

602 

517 

Gain on sales-type lease included within loss from unconsolidated joint ventures

— 

— 

1,368 

Unrealized gain (loss) on non-real estate investments

(346)

546 

239 

Noncontrolling interests in property partnerships

75,181 

67,516 

78,661 

Funds from Operations attributable to Boston Properties Limited Partnership (1)

1,209,636 

1,248,026 

1,274,568 

Effect of Dilutive Securities:

Stock based compensation

— 

— 

— 

Diluted Funds from Operations attributable to Boston Properties Limited Partnership

$

1,209,636 

$

1,248,026 

$

1,274,568 

_______________

(1)Our calculation includes OP Units and vested LTIP Units (including vested 2012 OPP Units and vested 2013 - 2022 MYLTIP Units).

Year ended December 31,

2025

2024

2023

shares/units (in thousands)

Basic Funds from Operations

175,858 

175,390 

174,796 

Effect of Dilutive Securities:

Stock based compensation

539 

325 

338 

Diluted Funds from Operations

176,397 

175,715 

175,134 

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Material Cash Commitments

As of December 31, 2025, we were subject to contractual payment obligations, excluding our unconsolidated joint ventures commitments. For details about our unconsolidated joint venture contractual payment obligations see “Investments in Unconsolidated Joint Ventures - Contractual Obligations” below. Our primary contractual payment obligations, that are not disclosed in other sections of this Annual Report on Form 10-K, are client and development related and described in further detail below. For details about our other contractual payment obligations related to operating and finance leases and debt, see Notes 4 and 7 to the Consolidated Financial Statements, respectively.

Payments Due by Period

Total

2026

2027

2028

2029

2030

Thereafter

(in thousands)

Commitments:

Client obligations (1)

$

723,491 

$

560,483 

$

107,560 

$

31,325 

$

18,522 

$

5,601 

$

— 

Construction contracts for development projects (2)

1,937,729 

634,294 

474,385 

475,789 

282,331 

70,930 

— 

Total Commitments

$

2,661,220 

$

1,194,777 

$

581,945 

$

507,114 

$

300,853 

$

76,531 

$

— 

 _______________

(1)Committed client-related obligations (tenant improvements and lease commissions) based on executed leases as of December 31, 2025. The timing and amount of these payments is subject to change.

(2)Payments for construction contracts for development projects includes consolidated joint ventures and represents 100% of the estimated development costs.

We invest in two non-real estate funds, which are primarily environmentally focused investment funds, each with a commitment to contribute $10.0 million, aggregating to a total commitment of $20.0 million. As of December 31, 2025, we have contributed approximately $10.5 million, which includes required fees, with $9.5 million remaining to be contributed.

Investment in Unconsolidated Joint Ventures - Contractual Obligations

As of December 31, 2025, the unconsolidated joint ventures that we have an ownership interest in were subject to contractual payment obligations as described in the table below.  The table represents our share of the contractual obligations. For details about our unconsolidated joint ventures secured debt see “Investment In Unconsolidated Joint Ventures - Secured Debt” referred to in “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”

Payments Due by Period

Total

2026

2027

2028

2029

2030

Thereafter

(in thousands)

Contractual Obligations:

Operating leases (1)

$

93,916 

$

944 

$

957 

$

970 

$

984 

$

998 

$

89,063 

Total Contractual Obligations

93,916 

944 

957 

970 

984 

998 

89,063 

Commitments:

Client obligations (2)

66,856 

42,643 

24,213 

— 

— 

— 

— 

Construction contracts for development projects

63,596 

34,327 

23,483 

5,393 

393 

— 

— 

Total Commitments

130,452 

76,970 

47,696 

5,393 

393 

— 

— 

$

224,368 

$

77,914 

$

48,653 

$

6,363 

$

1,377 

$

998 

$

89,063 

 _______________

(1)Operating leases include approximately $61.6 million related to renewal options that the joint venture is reasonably certain it will exercise.

(2)Committed client-related obligations (tenant improvements and lease commissions) based on executed leases as of December 31, 2025. The timing and amount of these payments is subject to change.

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We have various service contracts with vendors related to our property management. In addition, we have certain other contracts we enter into in the ordinary course of business that may extend beyond one year. These contracts include terms that provide for cancellation with insignificant or no cancellation penalties. Contract terms are generally between three and five years. 

During the year ended December 31, 2025, we paid approximately $461.4 million to fund client-related obligations, including tenant improvements and leasing commissions.

In addition, during the year ended December 31, 2025, we and our unconsolidated joint venture partners incurred approximately $529.8 million of new tenant-related obligations associated with approximately 4.6 million square feet of second generation leases, or approximately $116 per square foot. In addition, we signed leases for approximately 1.0 million square feet of first generation leases.  The tenant-related obligations for the development properties are included within the projects’ “Estimated Total Investment” referred to in “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” In the aggregate, during 2025, we signed leases for approximately 5.6 million square feet of space and incurred aggregate tenant-related obligations of approximately $767.2 million, or approximately $138 per square foot.