Slide 1: BXP Quarterly Investor Overview Q4 2024
BXP Quarterly Investor Overview Q4 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Please refer to the Appendix for information on how to identify these statements, as well as risks and uncertainties that could cause BXP’s actual results to differ mat
Slide 3: Table of Contents
Table of Contents BXP Today Premier Workplace Development The Balance Sheet BXP Performance Sustainability and Impact Q4 2024 3
Slide 4: BXP Today
BXP Today
Slide 5: BXP Quick Facts
BXP Quick Facts The largest publicly traded developer, owner and manager of premier workplaces1 in the U.S. 185 89.4% 7.7 Years Leased (In-Service Weighted-Average Lease Properties2 Properties)2,3 Term4,5 53.3M 2.3M 5.6M Square Feet of Leases Square Feet of Square Feet Owned2 Executed6 for Trailing
Slide 6: Positioned for Growth
Positioned for Growth Leasing Momentum: Strong fundamentals: a portfolio of high-quality assets Signed 2.3M1 SF of leases in Q4 2024 FFO Growth – Weighted-average lease term of 10.3 years for leases signed in Q4 20241,2 – Projected 2.5% compounded average annual growth (CAGR) in diluted FFO/share –
Slide 7: Accretive Investment Opportunity
Accretive Investment Opportunity 725 12th Street Washington, DC Original Acquisition: • ~300,000 square foot, 12-story vacant property in the East End submarket of Washington, DC • Purchase price of $34M Development Plan: • Redevelop the property into an ~320,000 square foot premier workplace ▪ Cent
Slide 8: 343 Madison Avenue Joint Venture
343 Madison Avenue Joint Venture Future Development Ideal Location: • Located in Core Midtown Manhattan submarket and is the only fully entitled, ready to commence workplace development • Situated atop Grand Central Terminal ▪ Convenient and direct access to transit • Designed to be 46 floors; ~965,
Slide 9: External Growth from 2024 Development Deliveries
External Growth from 2024 Development Deliveries 760 Boylston Street Skymark Reston Town Center 300 Binney Street4 Boston, Massachusetts Reston, Virginia Cambridge, Massachusetts • 118,000 SF • 417,000 SF • 240,000 SF • Ownership: 100% • 508 Units • Ownership: 55% • Estimated Total Investment1,3: $3
Slide 10: 5.6M SF of Leasing Executed with a Consistent Pipeline
5.6M SF1 of Leasing Executed with a Consistent Pipeline Government / Public Other Administration 2% 1% Financial Services 6,000 35% Increase in Retail 25% 7% executed leases from 20233,4 5,000 Life Sciences 8% Square Feet in Thousands 4,000 5.6M SF Executed1 3,000 Manufacturing 11% 2,000 1,000 Techn
Slide 11: Significant Future Expiration Leasing Executed
Significant Future Expiration Leasing Executed Low Rollover in 2026 and 20271,2 Correlates with Material Improvement Opportunity in Occupancy Total Expiring Square Feet3 7% • 2026 expirations total ~1.9M SF4 (3.8% of portfolio3) 6.6% ▪ Largest expiration in 2026 is 134,000 SF 6.0% 6% ▪ Currently in
Slide 12: CBD Leasing Remains Strong
CBD Leasing Remains Strong BXP’s CBD Portfolio Represents ~88% of Annualized Rental Obligations1,2 Region Leased (%)2,3 Boston 97.5% Los Angeles 87.4% New York 93.6% San Francisco 85.2% Seattle 83.5% Washington, DC 93.6% CBD Total1,2 92.8% 1. Includes 100% of consolidated and unconsolidated properti
Slide 13: Tailwind: Corporate Earnings Growth Drives Leasing Activity
Tailwind: Corporate Earnings Growth Drives Leasing Activity S&P500 Earnings Growth expected to be 10% for 2024 and 13% in 2025 BXP Quarterly Leasing Activity 3,500 120% 3,000 100% 80% 2,500 60% Thousands Percentage 2,000 40% 1,500 20% 1,000 0% 500 -20% 0 -40% 2 1 Square Feet Executed Average Execute
Slide 14: Tailwind: More Stringent In-Office Work Requirements Implemented
Tailwind: More Stringent In-Office Work Requirements Implemented Ripped from the Headlines JPMorgan Planning to Trump Signs Order Ending Landlords want to fill Starbucks Tells Workers to Bring Staff to Office Five Remote Work offices, workers want Return to the Office or Risk Days a Week “Heads of a
Slide 15: BXP Is Diversified Across U.S. Markets
BXP Is Diversified Across U.S. Markets BXP’s Share of Net Operating Income (NOI)1 Washington, DC 15.2% 2 Central 128 6.6% Seattle Boston 2.1% 38.3% Carnegie Center3 1.6% Silicon Valley 1.0% San Francisco 16.7% Other Suburban 1.1% CBD4 89.7% Los Angeles New York 3.5% 24.2% 1. Excluding termination in
Slide 16: BXP Client Base
BXP Client Base Broad Portfolio Balanced Across Established and Growth Sectors % of BXP’s Share of Years of Remaining Lease Term By Top 20 Clients Annualized Rental Annualized Rental Obligations2 Obligations2 Industry Diversification1 Salesforce 3.29% 7.2 Commercial & Real Estate & Investment Bankin
Slide 17: Premier Workplace
Premier Workplace
Slide 18: The Largest Publicly Traded Developer, Owner and Manager of Premier Workplaces
The Largest Publicly Traded Developer, Owner and Manager of Premier Workplaces in the U.S. 13.3% 13.2% 18.8% 8.7 MSF (15.6) MSF % of Total Premier Space in Direct Vacancy in Premier Direct Vacancy in Non-Premier Net Absorption in Premier Net Absorption in Non- Total Market1 Buildings1 Buildings1 Bui
Slide 19: Premier Assets Outperform The Broader Market
Premier Assets Outperform The Broader Market Average Direct Vacancy Rate for Five Selected CBD Markets (%)1 Average Asking Rent for Five Selected CBD Markets1 Premier Direct Vacancy Rate (Excluding Sublease Availability) Asking Rent 110.00 Averages 20.00 51% Higher 18.8% 18.00 100.00 16.00 $94.59 14
Slide 20: Development
Development
Slide 21: Consistent Portfolio Refreshment
Consistent Portfolio Refreshment Strategically Capitalizing on Growth Regions and Sectors Acquisitions, Developments & Dispositions $5.0 Dispositions: 14.2M SF1, $8.2B2 (2010-Q4 2024) $4.0 $2.4 Development Deliveries: 17.5M SF1, $10.0B3 (2010-Q4 2024) $3.0 $1.2 $2.3 $2.1 $2.0 Acquisitions: 16.2M SF1
Slide 22: Preeminent Developer with Robust Pipeline
Preeminent Developer with Robust Pipeline $8.6B1 of Recent Deliveries Generating Accretive Returns $2.1B4,6 of Developments Driving Future Growth (2014-Q4 2024) – $1.2B4,6 remaining share to be funded – 14.0 million² square feet 2.3 Million2 Square Feet Under Development – 860,000 SF Premier Workpla
Slide 23: $2.1 Billion Active Development Pipeline
$2.1 Billion Active Development Pipeline1,3 Estimated Total Estimated Actual/Est. BXP’s Ownership Percent Project Name Location Square Feet Investment Investment Initial Percentage Leased2 (BXP’s Share)1 PSF1 Occupancy PREMIER WORKPLACE 360 Park Avenue South New York, NY 450,000 71% $418,300,000 $1,
Slide 24: Residential
Residential Attractive and Actionable Adjacency with a Track Record of Success Demonstrated track record Growing set of private equity Strong pipeline under control Exploring office conversion of success developing investors interested in of new development sites opportunities in core markets reside
Slide 25: ~19 Million Square Feet in Future Development Pipeline
~19 Million Square Feet in Future Development Pipeline Project Name Location Estimated Square Feet1 Reston Next (Phase II) Reston, VA 2,230,000 3 Hudson Boulevard (25% ownership) New York, NY 2,000,000 Carnegie Center Princeton, NJ 1,723,000 The Station on North First San Jose, CA 1,550,000 CityPoin
Slide 26: The Balance Sheet
The Balance Sheet
Slide 27: Conservative Leverage Provides Balance Sheet Capacity
Conservative Leverage Provides Balance Sheet Capacity BXP’s Share of Net Debt to BXP’s Share of EBITDAre1 BXP’s Share of Market Capitalization1 9.0 $30 7.9x $25 7.7x 7.8x 7.8x 8.0 7.6x 7.6x 7.4x 7.5x $20 $15.4 BXP’s Share of Debt1,2 $ in Billions 6.8x $15 7.0 6.6x 6.5x $10 6.0 $5 $13.1 Equity 5.0 $0
Slide 28: Strong Liquidity and Access to Capital
Strong Liquidity and Access to Capital¹ Liquidity BXP’s Share of Debt3 $2.0 Billion $15.4 Billion Unsecured Debt Cash2 72.1% $0.5B Secured Debt 27.9% Revolving Credit Facility $1.5B4 1. Includes repayment of $850M aggregate principal amount of unsecured bonds on January 15, 2025 using available cash
Slide 29: BXP Performance
BXP Performance
Slide 30: Projected Growth in FFO Per Share and EBITDAre
Projected Growth in FFO Per Share and EBITDAre 2.5%1 4.4%2 2015-2025 FFO Per Share CAGR 2015-2025 EBITDAre CAGR $8.00 $2.5 1 $7.53 $7.00 $7.28 $7.10 1 $7.01 $6.86 $6.56 $2.0 2 $6.00 $6.21 $6.30 $6.29 $2.0 $6.03 $1.9 $1.9 Diluted FFO Per Share $1.8 $5.36 $1.7 $5.00 $1.6 $1.5 $1.5 EBITDAre (in Billion
Slide 31: Depressed Multiple Despite Increased FFO
Depressed Multiple Despite Increased FFO $8.00 30.0 $7.00 25.0 $6.00 17.4 Avg. 20.0 $5.00 $4.00 15.0 $3.00 10.0 $2.00 5.0 $1.00 $- 0.0 2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 FFO Per Share FFO Multiple Multiple Average 1. FFO Multiple is cal
Slide 32: Returns from a Consistent Dividend Yield
Returns from a Consistent Dividend Yield Trailing Four Quarter FAD Ratio of 77%1 Provides Strong Support for the Dividend Regular Dividend $6.00 5.3% Current $5.00 Dividend Yield2 Dividends in Dollars per Share $4.00 $3.00 $2.00 $3.83 $3.92 $3.92 $3.92 $3.92 $3.92 3.92 $1.00 $0.00 2019 2020 2021 202
Slide 33: BXP Summary
BXP Summary • Premier workplace portfolio across six markets with strong employment growth over time Quality • Proven, trusted corporate leadership team and regional management • Modern portfolio of new or recently refreshed assets; expanding life sciences and residential portfolios • Diverse client
Slide 34: Sustainability & Impact
Sustainability & Impact bxp
Slide 35: Ratings & Rankings
Ratings & Rankings1 2024 GRESB Results \ 1Data represents BXP’s full portfolio as of December 31, 2023. Q4 2024 35
Slide 36: BXP Sustainability Leadership
BXP Sustainability Leadership Committed to Achieving Carbon-Neutral Operations by 2025 Sustainability “From the Boardroom to Boiler Room” • Established an emissions reduction target ambition in line with a 1.5°C trajectory • Dedicated Board committee focused on sustainability – The most ambitious de
Slide 37: BXP Sustainability Framework
BXP Sustainability Framework Climate Action Climate Action Social Good Energy & Water Efficiency Climate Risk Awareness Healthy Buildings Green Building Asset-level Preparedness Community Involvement Renewable Energy Scenario Analysis Employee Programs Carbon-Neutrality Management & Planning Belongi
Slide 38: Sustainability Focus from the Boardroom to the Boiler Room
Sustainability Focus from the Boardroom to the Boiler Room Property Management Development & Construction Leasing & Marketing Corporate Functions & Engineering • Product vision and differentiation • Company-Wide Sustainable • Green leasing Board of Directors • Permitting and entitlement Operations C
Slide 39: Public Sustainability Goals
Public Sustainability Goals Data as of December 31, 2023. Target Achieved 41% energy use intensity reduction BXP intends to set a Net-Zero Science- based Target by committing to the Science- based Target initiative’s (SBTi) Net-Zero Standard Target Achieved 64% Scope 1, 2, & 3 (Category 13) carbon e
Slide 40: Public Sustainability Goals
Public Sustainability Goals Data as of December 31, 2023. 28% year-over-year reduction in Scope 1 & Scope 2 emissions from BXP operations Target Achieved 91% actively managed portfolio certified under ENERGY STAR, LEED, or Fitwel Target Achieved 48% water use intensity reduction 51% waste diversion
Slide 41: Energy Efficient Operations and Decarbonization
Energy Efficient Operations and Decarbonization1 Energy and Carbon Intensity Performance2 100 10 94.9 90 9 9.2 80 8 70 64.7 7 BXP has an approved science-based 60 55.7 6 target, confirming an emissions reduction rate equal to or greater than the rate of 50 5 reduction required to keep global tempera
Slide 42: Q4 2024 Appendix
Q4 2024 Appendix
Slide 43: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This Presentation contains 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. We intend these forward-looking statements to
Slide 44: Forward-Looking Statements (continued)
FORWARD-LOOKING STATEMENTS (continued) • risks associated with climate change and severe weather events, as well as the regulatory efforts intended to reduce the effects of climate change; • risks associated with security breaches, incidents, and compromises through cyber-attacks, cyber intrusions o
Slide 45: Definitions of Non-GAAP Financial Measures and Other Terms
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS This Appendix contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this Presentation and, where applicable, quantitative reconciliations of the differences between the non-GAAP financial measur
Slide 46: Definitions of Non-GAAP Financial Measures (continued)
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS (continued) Debt to Market Capitalization Ratio Consolidated Debt to Consolidated Market Capitalization Ratio is a measure of leverage commonly used by analysts in the REIT sector that equals the quotient of (A) the Company’s Consolidated De
Slide 47: Definitions of Non-GAAP Financial Measures (continued)
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS (continued) Fixed Charge Coverage Ratio Fixed Charge Coverage Ratio equals BXP’s Share of EBITDAre – cash divided by Total Fixed Charges. BXP’s Share of EBITDAre – cash is a non-GAAP financial measure equal to BXP's Share of EBITDAre after e
Slide 48: Definitions of Non-GAAP Financial Measures (continued)
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS (continued) Funds from Operations (FFO) Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of Nareit, the Company calculates Funds from Operations, or “FFO,” by adjusting net income (loss) attributa
Slide 49: Definitions of Non-GAAP Financial Measures (continued)
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER TERMS (continued) Net Operating Income (NOI) Net operating income (NOI) is a non-GAAP financial measure equal to net income (loss) attributable to BXP, Inc. common shareholders, the most directly comparable GAAP financial measure, plus (1) preferr
Slide 50: Projected EPS and FFO
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Projected EPS and FFO BXP’s guidance for the first quarter and full year 2025 for diluted earnings per common share attributable to BXP, Inc. (EPS) and diluted funds from operations (FFO) per common share attr
Slide 51: Revenue and Rental Revenue
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Revenue and Rental Revenue (in thousands) Quarter ended Quarter ended December 31, 2024 December 31, 2024 Revenue $ 858,571 Revenue $ 858,571 Add: Less: BXP's share of revenue from unconsolidated Joint Venture
Slide 52: Debt to Market Capitalization Ratios
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Debt to Market Capitalization Ratios (dollars in thousands, except per share amounts) December 31, December 31, September 30, June 30, March 31, 2024 2024 2024 2024 2023 2022 2021 2020 2019 2018 2017 Common st
Slide 53: EBITDAre
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) EBITDAre (dollars in thousands) Quarter Ended Year Ended December 31, December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 2024 Net income (loss) attributable to BXP, Inc. common shareholders $ (2
Slide 54: EBITDAre (continued from previous page)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) EBITDAre (continued from previous page) (dollars in thousands) Year Ended December 31, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Net income (loss) attributable to BXP, Inc. common shareholders $ 190,21
Slide 55: EBITDAre (continued from previous page)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) EBITDAre (continued from previous page) (dollars in thousands) 1 See “Joint Ventures-Unconsolidated” in this Appendix. 2 See “Joint Ventures-Consolidated” in this Appendix. 3 Lease transaction costs are genera
Slide 56: Net Debt to EBITDAre Ratios
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Net Debt to EBITDAre Ratios (dollars in thousands) Year Ended December 31, December 31, September 30, June 30, March 31, 2024 2024 2024 2024 2023 2022 2021 2020 2019 2018 2017 Consolidated debt $ 16,220,499 $
Slide 57: Fixed Charge Coverage Ratio
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Fixed Charge Coverage Ratio (dollars in thousands) Quarter Ended Year Ended December 31, December 31, September 30, June 30, March 31, 2024 2023 2024 2024 2023 2022 2021 2020 2019 2018 2017 Fixed Charges Inter
Slide 58: FFO, FAD (aka AFFO), and FAD Payout Ratios
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) FFO, FAD (aka AFFO), and FAD Payout Ratios (dollars and shares in thousands) Quarter Ended Year Ended December 31, December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 2024 2023 2022 2021 Net inco
Slide 59: FFO, FAD (aka AFFO), and FAD Payout Ratios (continued)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) FFO, FAD (aka AFFO), and FAD Payout Ratios (continued from previous page) (dollars and shares in thousands) Year Ended December 31, 2020 2019 2018 2017 2016 2015 2014 Net income attributable to BXP, Inc. commo
Slide 60: FFO, FAD (aka AFFO), and FAD Payout Ratios (continued)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) FFO, FAD (aka AFFO), and FAD Payout Ratios (continued from previous page) (dollars and shares in thousands) Year Ended December 31, 2013 2012 2011 2010 2009 2008 2007 Net income attributable to BXP, Inc. commo
Slide 61: FFO, FAD (aka AFFO), and FAD Payout Ratios (continued)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) FFO, FAD (aka AFFO), and FAD Payout Ratios (continued from previous page) (dollars and shares in thousands) Quarter Ended Trailing 4 Quarters as December 31, 2024 September 30, 2024 June 30, 2024 March 31, 202
Slide 62: FFO, FAD (aka AFFO), and FAD Payout Ratios (continued)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) FFO, FAD (aka AFFO), and FAD Payout Ratios (continued from previous page) (dollars and shares in thousands) Year Ended December 31, 2023 2022 2021 2020 2019 2018 2017 FFO attributable to the Operating Partners
Slide 63: FFO, FAD (aka AFFO), and FAD Payout Ratios (continued)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) FFO, FAD (aka AFFO), and FAD Payout Ratios (continued from previous page) (dollars and shares in thousands) 1 See “Joint Ventures-Consolidated” in this Appendix. 2 See “Joint Ventures-Unconsolidated” in this A
Slide 64: Joint Ventures (JVs) - Consolidated
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Joint Ventures (“JVs”) - Consolidated Results of Operations for the three months ended December 31, 2024 (in thousands) 767 Fifth Avenue Total Consolidated (The GM Building) Norges Joint Ventures 1 Joint Ventu
Slide 65: Joint Ventures (JVs) - Consolidated (continued)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Joint Ventures (“JVs”) - Consolidated (continued) Results of Operations for the three months ended December 31, 2024 (in thousands) 767 Fifth Avenue Total Consolidated Reconciliation of Partners' share of EBIT
Slide 66: Joint Ventures (JVs) - Unconsolidated
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Joint Ventures (“JVs”) - Unconsolidated As of December 31, 2024 Property BXP’s Nominal Ownership Boston 100 Causeway Street 50.00 % Hub50House 50.00 % The Hub on Causeway - Podium 50.00 % Hotel Air Rights 50.0
Slide 67: Joint Ventures (JVs) - Unconsolidated
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Joint Ventures (“JVs”) - Unconsolidated1 Results of Operations for the three months ended December 31, 2024 (in thousands) Total Unconsolidated Boston Los Angeles New York San Francisco Seattle Washington, DC
Slide 68: Joint Ventures (JVs) - Unconsolidated
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Joint Ventures (“JVs”) - Unconsolidated1 Results of Operations for the three months ended December 31, 2024 (unaudited and in thousands) Total Unconsolidated Reconciliation of BXP's share of EBITDAre Boston Lo
Slide 69: Net Operating Income (Loss) (NOI)
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION (UNAUDITED) Net Operating Income (Loss) (NOI) (in thousands) Quarter ended Quarter ended December 31, 2024 December 31, 2024 Net income (loss) attributable to BXP, Inc. $ (230,019) BXP's Share of Annualized NOI (excluding