2Q26 earnings weekly recap: Reiterate Buy ratings on BXP, CUZ & KRC

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Office REITs

2Q26 earnings weekly recap: Reiterate Buy

ratings on BXP, CUZ & KRC

Price Objective Change

2Q beats and guidance bumps driven by strong leasing

2Q26 results were constructive across BXP, CUZ and KRC’s earnings releases and calls.

All three companies beat the Street. BXP and CUZ raised 2026 guidance driven by

stronger leasing activity and better-than-expected occupancy. KRC maintained guidance.

We reiterate our Buy ratings on all three REITs with demand broadening across markets,

rents beginning to rise in a more meaningful way, limited quality supply and valuation.

Leasing volume above historical levels; healthy pipelines

BXP leased 1.8M SF in 2Q, which is 29% above its historical 2Q average, while CUZ's

1H26 leasing volume of 1.9M SF has almost matched its full year 2025 total of 2.1M SF.

Importantly, both companies have refilled their pipelines to similar levels as one quarter

ago, providing runway for the momentum to continue in 2H26. While KRC’s 2Q volume

was a bit lighter due to timing, positively, its leasing pipeline has built materially, with

late-stage deals up +77% Q/Q including a meaningful pickup in activity at KOP 2.

Occupancy and rising rents support earnings growth

All three companies highlighted sizable leased versus occupied spreads, providing

visibility into future occupancy and earnings growth as leases commence. Positively,

both BXP and CUZ are tracking ahead of their 2026 occupancy targets. Additionally,

rents are rising with management commentary highlighting double digit % Y/Y increases

in several key markets. With new office development expected to remain limited for

several years, management teams expressed growing confidence in future rent growth

and earnings visibility.

Active quarter for transactions and development

REITs remained active in the capital markets during 2Q. BXP continues to execute on its

disposition plan ahead of schedule and recently closed on a $1.2B construction loan for

343 Madison while entering into an LOI for a 10% equity stake. CUZ sold two non-core

assets during/after the quarter, recycled capital into higher growth opportunities and

continues to evaluate new developments.…