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Controversial S.F. fountain not part of Embarcadero Plaza renovation plans, officials say

Controversial S.F. fountain not part of Embarcadero Plaza renovation plans, officials say

The fight for Vaillancourt Fountain heated up Tuesday night at a community meeting where a San Francisco city official said publicly for the first time that the controversial concrete sculpture is not part of the renovation plan for Embarcadero Plaza.
'We did look into keeping the fountain on-site,' Recreation and Park Department Project Manager Eoanna Harrison Goodwin told a decidedly pro-fountain audience, 'but once we got the cost estimate, it is beyond our project budget.'
The revelation, while not the final word on the 710-ton sculpture, was perhaps the most discouraging sign yet for its ardent supporters that its days on Embarcadero Plaza may be numbered.
The blocky Brutalist fountain, a lightning rod for public opinion since its debut a half-century ago, has deteriorated and broken down in recent years. In June, the park department fenced it off after declaring it a public hazard based on a report that concluded a full renovation would cost roughly $17 million.
A new independent estimate now pegs the cost at $29 million, Goodwin said Tuesday — a dramatic jump that earned a collective groan from the crowd. That number did not include the cost of plans, permits and annual upkeep of at least $100,000.
That means fixing the fountain would cost nearly as much as the entire Embarcadero Plaza makeover project, budgeted at $32.5 million, Goodwin said.
The plan is to combine Embarcadero Plaza and the adjacent Sue Bierman Park to form a single 5-acre multiuse park, twice the size of Union Square. The complicated project is a public-private partnership between the Recreation and Park Department, which manages the land; BXP, which owns the four Embarcadero office towers; the Downtown SF Partnership; and the Office of Economic and Workforce Development.
Though the park department maintains the fountain and is indicating it no longer wants it, it does not own the sculpture and has no authority over its possible removal. It is part of the Civic Art Collection, and its fate will eventually be determined by the San Francisco Arts Commission and possibly the Board of Supervisors.
Tuesday's community forum at Codi, a meeting popup at Embarcadero Three, came just one month after the fountain's creator, 95-year-old artist Armand Vaillancourt, made a rare visit from his Montreal home to lobby the park department and the arts commission to preserve his namesake work.
The fountain has been shut off for a year since its pumps broke, but Vaillancourt told the Chronicle that with some cleaning and repairs it would last another 50 years or more.
Vaillancourt was not among the 200 people who RSVP'd for Tuesday's meeting, but his daughter, San Francisco resident Oceania Vaillancourt, attended and made an emotional plea for her father's creation.
'My dad asked me to help him,' said Vaillancourt during the Q&A session after the city's presentation, noting she lives two blocks away and goes by the fountain every day. 'I just can't imagine the fountain not being there,' she said through tears. 'I just hope we can gather the community and hopefully change the decision of removing the fountain.'
Also in attendance were members of the Northern California chapter of Docomomo US, a modernist architecture preservation group that has been staging actions to save the fountain.
The sculpture, which currently sits in the middle of the multiuse area, was not on any of the diagrams presented Tuesday by HOK, the design firm hired for the project. The diagrams showed a location for a 'permanent art piece,' though apparently not the one that is already there, Petra Marar of Docomomo noted.
'The fountain is not on any of the options,' said Marar. 'It feels like it is all or nothing, keeping it or removing it, and it feels like they are removing it.'
Andrew Sullivan, a landscape architect who worked with the famed Embarcadero Plaza designer Lawrence Halprin, said, 'The process that the city went through to determine that the fountain needs to be removed is disingenuous. They predetermined that the demolition of the fountain is a given without any actual design. They just created excuses to get rid of it without any meaningful discussion.'
The design of the park has also yet to be determined. The future unification of Embarcadero Plaza and Sue Bierman Park will be continued at a third meeting to be scheduled this fall. The park will then enter the design phase.
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Exceeded Q2 Guidance for EPS and FFO and Increased Full Year Guidance, Executed More Than 1.1 Million Square Feet of Leases in Q2 and Announces Development of 343 Madison Avenue in New York City BOSTON, July 29, 2025--(BUSINESS WIRE)--BXP, Inc. (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported results today for the second quarter ended June 30, 2025. Financial Highlights Second Quarter 2025: Revenue increased 2.1% to $868.5 million for the quarter ended June 30, 2025, compared to $850.5 million for the quarter ended June 30, 2024. Net income attributable to BXP, Inc. of $89.0 million, or $0.56 per diluted share (EPS), for the quarter ended June 30, 2025, compared to $79.6 million, or $0.51 per diluted share, for the quarter ended June 30, 2024. 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The difference between leased and occupied square footage has grown to 270 basis points, which represents approximately 1.3 million square feet of space which is expected to commence in 2025 and 2026. Development BXP will be proceeding with full vertical construction of 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 best office development sites in Manhattan with direct access to Grand Central Station. BXP is electing to acquire our partner's 45% interest in the project at cost, or approximately $43.5 million, during the third quarter of 2025. In addition, BXP signed a letter of intent with a prospective client for approximately 274,000 square feet, or 30% of the building's square footage and BXP has other tenant proposals in discussion, underscoring the continued strong demand for the future premier workplace. 343 Madison represents a strong and significant value creation opportunity for shareholders. Transactions As part of BXP's strategy to use residential entitlements to maximize the value of its land holdings, BXP is redeveloping 17 Hartwell Avenue, into a fully entitled, 312-unit residential project in Lexington, Massachusetts with its investor, Northwestern Mutual. BXP sold 17 Hartwell Avenue to the new venture for approximately $21.8 million in cash. BXP also contributed development costs of approximately $5.6 million for its 20% ownership interest. BXP recognized a gain upon sale of the property of approximately $18.4 million. BXP will be the development manager for the project. In addition, the project entered into a $98.7 million construction loan that is scheduled to mature on July 10, 2030, and bears interest at a fixed rate of 6.75% per annum. 17 Hartwell is expected to be completed in mid-2027. Sustainability & Impact In connection with Earth Day, BXP published its 2024 Sustainability & Impact Report, which highlights that, among other things, BXP achieved its net-zero goal of carbon-neutral operations for Scopes 1 and 2 greenhouse gas emissions. EPS and FFO per Share Guidance: BXP's guidance for the third quarter of 2025 and full year 2025 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in this release and those referenced during the related conference call. The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. 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Third Quarter 2025 Full Year 2025 Low High Low High Projected EPS (diluted) $ 0.41 $ 0.43 $ 1.74 $ 1.82 Add: Projected Company share of real estate depreciation and amortization 1.28 1.28 5.20 5.20 Projected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments — — (0.10 ) (0.10 ) Projected FFO per share (diluted) $ 1.69 $ 1.71 $ 6.84 $ 6.92 The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter ended June 30, 2025. In the opinion of management, BXP has made all adjustments considered necessary for a fair statement of these reported results. BXP will host a conference call on Wednesday, July 30, 2025 at 10:00 AM Eastern Time, open to the general public, to discuss the second quarter results, provide a business update, and discuss other business matters that may be of interest to investors. Participants who would like to join the call and ask a question may register at to receive the dial-in numbers and unique PIN to access the call. There will also be a live audio, listen-only webcast of the call, which may be accessed in the Investors section of BXP's website at Shortly after the call, a replay of the call will be available on BXP's website at for up to twelve months following the call. Additionally, a copy of BXP's second quarter 2025 "Supplemental Operating and Financial Data" and this press release are available in the Investors section of BXP's website at BXP, Inc. (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). As of June 30, 2025, including properties owned by unconsolidated joint ventures, BXP's portfolio totals 53.7 million square feet and 186 properties, including ten properties under construction/redevelopment. For more information about BXP, please visit our website or follow us on LinkedIn or Instagram. This press release includes references to "BXP's Share of annualized rental obligations." We define rental obligations as the contractual base rents (but excluding percentage rent) and budgeted reimbursements from clients under existing leases. These amounts exclude rent abatements. Further, "annualized rental obligations" is defined as monthly rental obligations, as of the last day of the reporting period, multiplied by twelve (12). "BXP's Share" is based on annualized rental obligations for our consolidated portfolio, plus our share of annualized rental obligations from the unconsolidated joint ventures properties (calculated based on our ownership percentage), minus our partners' share of annualized rental obligations from our consolidated joint venture properties (calculated based on our partners' percentage ownership interests). Our definitions of the foregoing operating metrics may be different than those used by other companies. This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words "anticipates," "believes," "budgeted," "could," "estimates," "expects," "guidance," "intends," "may," "might," "plans," "projects," "should," "will," and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond BXP's control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to adverse changes in general economic and capital market conditions, including continued inflation, elevated interest rates, supply chain disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the U.S. or global economy, general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on favorable 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), the impact of adverse political conditions, including policy changes by the presidential administration, such as the direct and indirect negative impacts that new and increased tariffs may have on (1) our current and prospective clients and their demand for office space and (2) the costs and availability of construction materials and the economic returns on our construction and development activities, the impact of geopolitical conflicts, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on BXP's accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes and other risks and uncertainties detailed from time to time in BXP's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance, or achievements. BXP does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as otherwise required by law. Financial tables follow. BXP, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2025 December 31, 2024 (in thousands, except for share and par value amounts) ASSETS Real estate, at cost $ 26,632,189 $ 26,391,933 Construction in progress 1,047,687 764,640 Land held for future development 748,198 714,050 Right of use assets - finance leases 372,839 372,922 Right of use assets - operating leases 325,670 334,767 Less: accumulated depreciation (7,863,743 ) (7,528,057 ) Total real estate 21,262,840 21,050,255 Cash and cash equivalents 446,953 1,254,882 Cash held in escrows 80,888 80,314 Investments in securities 41,062 39,706 Tenant and other receivables, net 109,683 107,453 Note receivable, net 6,711 4,947 Related party note receivables, net 88,825 88,779 Sales-type lease receivable, net 15,188 14,657 Accrued rental income, net 1,509,347 1,466,220 Deferred charges, net 809,033 813,345 Prepaid expenses and other assets 89,624 70,839 Investments in unconsolidated joint ventures 1,161,036 1,093,583 Total assets $ 25,621,190 $ 26,084,980 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 4,278,788 $ 4,276,609 Unsecured senior notes, net 9,800,577 10,645,077 Unsecured line of credit 185,000 — Unsecured term loans, net 796,640 798,813 Unsecured commercial paper 750,000 500,000 Lease liabilities - finance leases 365,897 370,885 Lease liabilities - operating leases 399,174 392,686 Accounts payable and accrued expenses 480,158 401,874 Dividends and distributions payable 172,732 172,486 Accrued interest payable 120,975 128,098 Other liabilities 416,838 450,796 Total liabilities 17,766,779 18,137,324 Commitments and contingencies — — Redeemable deferred stock units 6,981 9,535 Equity: Stockholders' equity attributable to BXP, Inc.: Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — — Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued or outstanding — — Common stock, $0.01 par value, 250,000,000 shares authorized, 158,445,177 and 158,253,895 issued and 158,366,277 and 158,174,995 outstanding at June 30, 2025 and December 31, 2024, respectively 1,584 1,582 Additional paid-in capital 6,854,753 6,836,093 Dividends in excess of earnings (1,579,770 ) (1,419,575 ) Treasury common stock at cost, 78,900 shares at June 30, 2025 and December 31, 2024 (2,722 ) (2,722 ) Accumulated other comprehensive loss (15,059 ) (2,072 ) Total stockholders' equity attributable to BXP, Inc. 5,258,786 5,413,306 Noncontrolling interests: Common units of the Operating Partnership 584,651 591,270 Property partnerships 2,003,993 1,933,545 Total equity 7,847,430 7,938,121 Total liabilities and equity $ 25,621,190 $ 26,084,980 BXP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 (in thousands, except for per share amounts) Revenue Lease $ 805,935 $ 790,555 $ 1,617,037 $ 1,579,145 Parking and other 34,799 34,615 65,041 66,831 Hotel 14,773 14,812 24,370 22,998 Development and management services 8,846 6,352 18,621 12,506 Direct reimbursements of payroll and related costs from management services contracts 4,104 4,148 8,603 8,441 Total revenue 868,457 850,482 1,733,672 1,689,921 Expenses Operating Rental 332,062 321,426 663,640 635,583 Hotel 9,365 9,839 16,930 15,854 General and administrative 42,516 44,109 94,800 94,127 Payroll and related costs from management services contracts 4,104 4,148 8,603 8,441 Transaction costs 357 189 1,125 702 Depreciation and amortization 223,819 219,542 443,926 438,258 Total expenses 612,223 599,253 1,229,024 1,192,965 Other income (expense) Income (loss) from unconsolidated joint ventures (3,324 ) (5,799 ) (5,463 ) 13,387 Gain on sale of real estate 18,390 — 18,390 — Loss on sales-type lease — — (2,490 ) — Interest and other income (loss) 8,063 10,788 15,813 25,317 Gains (losses) from investments in securities 2,600 315 2,235 2,587 Unrealized gain (loss) on non-real estate investment (39 ) 58 (522 ) 454 Impairment loss — — — (13,615 ) Loss from early extinguishment of debt — — (338 ) — Interest expense (162,783 ) (149,642 ) (326,227 ) (311,533 ) Net income 119,141 106,949 206,046 213,553 Net income attributable to noncontrolling interests Noncontrolling interests in property partnerships (20,100 ) (17,825 ) (38,849 ) (35,046 ) Noncontrolling interest—common units of the Operating Partnership (10,064 ) (9,509 ) (17,036 ) (19,009 ) Net income attributable to BXP, Inc. $ 88,977 $ 79,615 $ 150,161 $ 159,498 Basic earnings per common share attributable to BXP, Inc. Net income $ 0.56 $ 0.51 $ 0.95 $ 1.02 Weighted average number of common shares outstanding 158,312 157,039 158,257 157,011 Diluted earnings per common share attributable to BXP, Inc. Net income $ 0.56 $ 0.51 $ 0.95 $ 1.01 Weighted average number of common and common equivalent shares outstanding 158,795 157,291 158,713 157,210 BXP, INC. FUNDS FROM OPERATIONS (1) (Unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 (in thousands, except for per share amounts) Net income attributable to BXP, Inc. $ 88,977 $ 79,615 $ 150,161 $ 159,498 Add: Noncontrolling interest - common units of the Operating Partnership 10,064 9,509 17,036 19,009 Noncontrolling interests in property partnerships 20,100 17,825 38,849 35,046 Net income 119,141 106,949 206,046 213,553 Add: Depreciation and amortization expense 223,819 219,542 443,926 438,258 Noncontrolling interests in property partnerships' share of depreciation and amortization (20,945 ) (19,203 ) (41,409 ) (37,898 ) Company's share of depreciation and amortization from unconsolidated joint ventures 16,674 19,827 34,001 40,050 Corporate-related depreciation and amortization (600 ) (406 ) (1,316 ) (825 ) Non-real estate related amortization 2,131 2,130 4,261 4,260 Loss on sales-type lease — — 2,490 — Impairment loss — — — 13,615 Less: Gain on sale of real estate 18,390 — 18,390 — Gain on sale / consolidation included within income (loss) from unconsolidated joint ventures — — — 21,696 Unrealized gain (loss) on non-real estate investment (39 ) 58 (522 ) 454 Noncontrolling interests in property partnerships 20,100 17,825 38,849 35,046 Funds from operations (FFO) attributable to the Operating Partnership (including BXP, Inc.) 301,769 310,956 591,282 613,817 Less: Noncontrolling interest - common units of the Operating Partnership's share of funds from operations 30,117 32,557 59,010 64,144 Funds from operations attributable to BXP, Inc. $ 271,652 $ 278,399 $ 532,272 $ 549,673 BXP, Inc.'s percentage share of funds from operations - basic 90.02 % 89.53 % 90.02 % 89.55 % Weighted average shares outstanding - basic 158,312 157,039 158,257 157,011 FFO per share basic $ 1.72 $ 1.77 $ 3.36 $ 3.50 Weighted average shares outstanding - diluted 158,795 157,291 158,713 157,210 FFO per share diluted $ 1.71 $ 1.77 $ 3.35 $ 3.50 (1) Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("Nareit"), we calculate Funds from Operations, or "FFO," by adjusting net income (loss) attributable to BXP, Inc. (computed in accordance with GAAP) 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 real estate-related depreciation and amortization. FFO is a non-GAAP financial measure, but we believe the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures 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 and FFO per share 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 calculation 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. In order to facilitate a clear understanding of the Company's operating results, FFO should be examined in conjunction with net income attributable to BXP, Inc. as presented in the Company's consolidated financial statements. FFO should not be considered as a substitute for net income attributable to BXP, Inc. (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company's financial information prepared in accordance with GAAP. BXP, INC. PORTFOLIO LEASING PERCENTAGES CBD Portfolio % Occupied by Location (1) % Leased by Location (2) June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 Boston 97.0 % 95.9 % 98.5 % 97.5 % Los Angeles 86.3 % 84.9 % 86.9 % 87.4 % New York 87.2 % 90.8 % 93.0 % 93.6 % San Francisco 81.8 % 84.3 % 83.8 % 85.2 % Seattle 84.6 % 81.6 % 85.9 % 83.5 % Washington, DC 91.1 % 91.9 % 92.7 % 93.6 % CBD Portfolio 89.9 % 90.9 % 92.5 % 92.8 % Total Portfolio % Occupied by Location (1) % Leased by Location (2) June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 Boston 89.7 % 89.7 % 91.2 % 91.5 % Los Angeles 86.3 % 84.9 % 86.9 % 87.4 % New York 84.4 % 87.1 % 90.2 % 90.0 % San Francisco 78.7 % 80.8 % 80.7 % 81.7 % Seattle 84.6 % 81.6 % 85.9 % 83.5 % Washington, DC 90.5 % 91.4 % 92.3 % 93.0 % Total Portfolio 86.4 % 87.5 % 89.1 % 89.4 % (1) Represents signed leases for which revenue recognition has commenced in accordance with GAAP. (2) Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates. View source version on Contacts AT BXP Michael LaBelleExecutive Vice President,Chief Financial Officer and Treasurermlabelle@ Helen HanVice President, Investor Relationshhan@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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