BXP Unchanged FFO Estimate for 2026, Lower 2027 From Dispositions

Research evidence excerpt

BXP Unchanged FFO Estimate for 2026, Lower 2027 From Dispositions

J P M O R G A N North America Equity Research

22 June 2026

BXP Overweight

BXP, BXP US

Unchanged FFO Estimate for 2026, Lower 2027 From Price (22 Jun 26):$64.91

Dispositions Price Target (Dec-26):$79.00

We updated our BXP model. Our 2026 FFO/share is unchanged at $6.97 (+1.6%), REITs & Real Estate Services

ACwhich is in line with the guidance midpoint (range of $6.90-7.04) and a penny Anthony Paolone, CFA

ahead of Bloomberg consensus. Our 2027 FFO/share is down from $7.29 to $7.22 (1-212) 622-6682

(+3.6% y/y), which remains a bit ahead of Bloomberg consensus of $7.18. For anthony.paolone@jpmorgan.com

2026, our FFO estimate is driven by higher occupancy and lower interest expense Michael W. Mueller, CFA

(due to debt repayments with cash from dispositions), offset mainly by our (1-212) 622-6689

assumed NOI impact from dispositions. For 2027, our FFO estimate is down michael.w.mueller@jpmorgan.com

mainly due to the NOI impact from 2026 dispositions, offset slightly by higher Hong Zhang

occupancy. (1-212) 622-6416

hongliang.zhang@jpmorgan.com

In the core, we assume 2026 average occupancy increases 140bps y/y to 88.1% (vs. Nahom Tesfazghi

+100bps previously), which compares to the guidance midpoint of 88.25% (range (1-212) 622 4884

nahom.tesfazghi@jpmchase.com

of 87.75-88.75%). Our 2027 average occupancy increases 260bps y/y to 90.7%

Daniella De Armas Rosales

(vs. +240bps previously). Overall, we assume a 400bps average occupancy gain

(1-212) 622-0050

by the end of 2027, which ties to management’s target to reach 4% occupancy gains daniella.dearmasrosales@jpmchase.com

over the next two years. J.P. Morgan Securities LLC

On the disposition side, we assume more lumpy volumes for 2026 (more 4Q26