BXP Stock: Dividend vs FFO and FAD, Occupancy, Debt and Development From Its Own Filings (2026)

The dividend history as filed: eleven dates at $0.98, then $0.70

BXP's 10-K lists every dividend by record date. From the record date of December 30, 2022 to June 30, 2025 the dividend was $0.98 each time. The 10-Ks for 2020 and 2022 also state that the fourth-quarter regular dividend was $0.98 in 2019, 2020, 2021 and 2022, and that the fourth-quarter 2018 dividend was $0.95.

The reason the 10-Q gives for the reset is specific. It was “to, among other things, more closely align our annual dividend payout to our taxable income, allow us to retain incremental cash per quarter, and support longer-term growth.” The same 10-Q says BXP's policy is to distribute at least 100% of its taxable income, including capital gains, so the dividend follows taxable income and not only FFO. Taxable income includes gains on sales, and BXP has been selling assets.

Dividend against FFO and against FAD, quarter by quarter

FFO is Nareit funds from operations. FAD is BXP's own measure: basic FFO with straight-line rent and similar non-cash items removed and with second-generation tenant improvements, leasing commissions and maintenance capital spending deducted. The “FAD payout” is distributions on common shares and operating partnership units divided by FAD, as BXP computes it.

Annual comparisons (our arithmetic): the dividends by record date were $3.92 in 2024 and $3.36 in 2025 (0.98 twice and 0.70 twice), which is 55.2% of the 2024 diluted FFO of $7.10 and 49.1% of the 2025 FFO of $6.85. For the first half of 2026 it is $1.40 against $3.36, 41.7%. Annualized at $2.80 against the midpoint of the July guidance ($7.02), it is 39.9%.

On FAD, 2025 as a whole was covered: FAD of $753.8 million against distributions of $594.4 million, a 78.9% payout (our arithmetic). The first half of 2026 was not: $230.7 million of FAD against $248.7 million of distributions declared, 107.8% (our arithmetic). Over the last four quarters FAD was $567.0 million against $496.4 million of distributions, 87.6% (our arithmetic).

Why FAD fell: leasing costs for the occupancy gain

The FAD gap is not weaker rents. It is the cost of signing and building out space that is now commencing. BXP's share of second-generation tenant improvements and leasing commissions rose from about $60 million a quarter in 2025 to $145 to $178 million.

Three quarters of Q4 2025 to Q2 2026 total $476.8 million of tenant improvements and commissions, against $185.1 million for Q1 to Q3 2025 (our arithmetic). The company's supplemental says the spread between leased and occupied space, about 1.3 million square feet at June 30, will commence mostly before year-end 2026; the cost of fitting that space out is the part a reader cannot yet see in FAD. The second-generation leases signed in Q2 carried total transaction costs of $99.12 a square foot and a weighted average free-rent period of 172 days.

Guidance: the 2025 miss and three steps up for 2026

The July assumptions also give average in-service occupancy of 88.50% to 89.25% for 2026 and growth in same-property NOI (excluding termination income) of 1.80% to 2.60% on a GAAP basis, but -0.25% to +0.25% in cash. Same-property NOI was down 2.0% in Q1 2026 and up 3.5% in Q2. Consolidated net interest expense is guided at $588 million to $595 million, and termination income at $19 million to $23 million. The guidance excludes future gains, losses and impairments, including the $18.0 million Q2 impairment on Sumner Square, which the 8-K of May 29 says has no effect on FFO.

Occupancy and leased percentage by region

Occupied counts leases whose rent has started; leased adds signed leases for vacant space that has not started. The central business district portfolio, about 91% of BXP's share of annualized rental obligations, was 90.7% occupied and 93.6% leased; the suburban portfolio was 75.1% occupied. In Q2 BXP signed 106 leases and about 1.76 million square feet with a 9.9-year weighted average term. The positive blended rent change of 1.58% is two big positives (Boston, New York) offset by three negatives (San Francisco, Seattle, Washington); read it region by region.

Concentration is moderate: the top 20 clients are 29.15% of annualized rental obligations with 8.9 years of weighted average remaining term. Salesforce is 3.36%, Google 3.16% and Akamai 2.17%. Biogen (1.81%) has the shortest remaining term of the top six at 1.9 years.

Lease expirations by year

The company's expiration table covers all in-service properties at its share, office and retail, as of June 30, 2026. The 2026 row is the remainder of the year.

Through the end of 2027 about 4.6% of square feet expire (company figure; 0.67% plus 3.92%), and about 300,000 square feet before December 31, 2026. Through 2029 it is 18.4% (our arithmetic). The company's weighted average remaining term for in-place leases is 7.7 years. The table counts a lease in the year its replacement expires when a replacement has already been signed, so it understates what turns over on paper.

Debt: what falls due, and at what rate it comes back

Consolidated debt was $15.62 billion at June 30, 2026, 57.03% of consolidated market capitalization (62.90% at March 31, when the share price was $51.90). Stated average rate is 3.90%, average maturity 3.5 years, 72.59% is unsecured and 11.19% floats at 4.45%. The senior notes are rated BBB (negative) by S&P and Baa2 (stable) by Moody's.

Debt due in the rest of 2026 plus 2027 is $4.88 billion, 31.2% of the total (our arithmetic). The commercial paper averages 41 days to maturity and is backstopped by the $2.25 billion revolver, which had $1.50 billion of remaining capacity at June 30 and $165 million drawn at July 31. Cash fell from $1.48 billion at December 31, 2025 to $494 million at June 30, 2026 after the February repayment of $1.0 billion of 3.650% notes.

The refinancing for the October 1, 2026 notes is in the 8-K of August 31: BXP sold $700.0 million of 6.050% senior notes due 2036 with net proceeds of about $692.4 million and said it would use cash and revolver borrowings for the rest. At 6.050% against 2.750%, the interest on $700 million rises by about $23.1 million a year (our arithmetic), about $0.13 a diluted FFO share at the 176.9 million units used in the Q2 FFO calculation. As of October 17, 2026 the filings we read do not yet confirm the repayment itself; the 10-Q for the third quarter will. The two largest 2027 maturities are the 3.43% GM Building mortgage and the 6.750% notes due December 1, 2027.

Joint-venture debt: $1.1 billion at BXP's share

Fourteen unconsolidated joint ventures carry mortgage debt of $2.69 billion at 100% and $1.10 billion at BXP's share. Six loans in the 10-Q mature by the end of 2027 (extension options not counted): $1.15 billion at 100%, about $523 million at BXP's share (our arithmetic).

BXP also funds part of two of these structures: $25.4 million of a mezzanine loan at 3 Hudson Boulevard and $10.5 million of the 500 North Capitol loan, both carried as related-party notes receivable.

The development pipeline and how much of it is pre-leased

On July 28, 2026 BXP closed a $1.2 billion construction loan on 343 Madison at Term SOFR plus 2.50%, falling to plus 2.25% on leasing and construction milestones; it matures July 28, 2030 with a one-year option. The supplemental says this lowers the future equity spend on that project to $341 million. The same table puts the 343 Madison stabilization date at Q2 2031. The quoted 66% pre-leased figure is a weighted figure on 1.613 million square feet, so about 1.07 million square feet are signed (our arithmetic), roughly 465,000 of them at 343 Madison. BXP also owns 12.96 million developable square feet of land, 8.97 million of it office.

Sales, impairments and the equity side

BXP says it has generated about $1.3 billion of net sale proceeds since its September 2025 Investor Conference, about $432 million of them since January 1, 2026, with five assets under contract for about $180 million (about $120 million expected to close in 2026) and up to $440 million more possible by year end. In the first half the supplemental lists dispositions with $525.6 million of gross price, $368.5 million of net proceeds and a $62.9 million book gain at BXP's share. Sumner Square in Washington, DC sold on August 5 for $63.0 million after an $18.0 million impairment in Q2.

Impairments have been larger in the joint ventures: $341.3 million on three unconsolidated joint ventures in Q4 2024 and $145.1 million in Q3 2025, which is why Q3 2025 earnings per share were negative ($0.77) while FFO was $1.74. FFO excludes these charges by definition.

On equity, the company has not sold shares through its ATM, and the outstanding share count rose only by exchanges of units. Total shares plus operating partnership units were 177.5 million, an equity value of $11.77 billion at $66.31.

What the dividend meant for tax, and what comes next

For federal tax purposes BXP reports the common dividend per share as $3.64 for 2025 ($2.35 ordinary income and $1.29 capital gain), $3.65 for 2024 (of which $0.40 return of capital) and $4.16 for 2023. The 10-K allocates the fourth-quarter payments across years, so the tax-year totals differ from the sum of dividends by record date. Gains on sales flow into the dividend; see our guide to estimating tax on REIT and BDC income for how REIT and BDC income reaches your tax return.

BXP said it will release third-quarter results after the market close on Tuesday, October 27, 2026, with a call on October 28, 2026 at 10:00 a.m. Eastern; this is from a company press release, not an SEC filing. As of October 17, 2026 the Form 10-Q for the quarter ended September 30, 2026 is not filed. Over the last two quarters the 10-Q followed the earnings 8-K by nine or ten days (July 28 to August 6, 2026, and October 28 to November 7, 2025), which would put it around November 5 to 6 if the pattern holds (our arithmetic; BXP does not announce the date).

What a holder or reader can do with this

This page is analysis of public documents, not investment, legal or tax advice. Things the filings let you check yourself:

• Choose the yardstick and say which. 39% of FFO and 87.5% of FAD describe the same Q2 dividend. Over a longer window the first half of 2026 is 41.7% of FFO and 107.8% of FAD (our arithmetic).
• Watch tenant improvements and commissions. They moved FAD more than rents did. The company expects 1.3 million square feet of leases to start, and each carries build-out cost.
• Put refinancing at today's rates. The new ten-year paper priced at 6.050%; the $2.3 billion GM Building mortgage (3.43%) and $750 million of 6.750% notes both mature in 2027.
• Read the pipeline against the equity plan. $1.86 billion of future equity on office projects, before the $1.2 billion loan, against $432 million of sale proceeds in 2026 so far and an unused $1.0 billion ATM.
• Compare with other office names on the same dates in our ten-company office REIT table, and with a different structure in non-traded versus publicly traded REITs.

FAQ

All figures are from BXP, Inc. (SEC CIK 1037540; Boston Properties Limited Partnership, CIK 1043121, files the same documents) filings read on EDGAR on October 17, 2026: Forms 10-K for 2025 (accession 0001037540-26-000006), 2022 (0001656423-23-000013) and 2020 (0001656423-21-000006); Forms 10-Q for the quarters ended June 30, 2026 (0001037540-26-000034), March 31, 2026 (0001037540-26-000019) and September 30, 2025 (0001037540-25-000013); the earnings press releases and supplemental operating and financial data attached to Forms 8-K for Q1 2025 (0001656423-25-000030), Q2 2025 (0001656423-25-000043), Q3 2025 (0001037540-25-000010), Q4 2025 (0001037540-26-000003), Q1 2026 (0001037540-26-000015) and Q2 2026 (0001037540-26-000031); and the Forms 8-K of September 29, 2025 (0001037540-25-000004), May 29, 2026 (0001037540-26-000026) and August 31, 2026 (0001037540-26-000037). The October 27, 2026 earnings date and the September 16, 2026 dividend declaration come from company press releases as reproduced by third-party sites, not from SEC filings. Dividend-to-FFO percentages, annual sums, the first-half FAD payout, midpoints of guidance, implied second-half FFO, the share of debt by year, the extra interest on the new notes, joint-venture totals and pre-leased square feet are our arithmetic from those rows; FFO, FAD, EBITDAre and net debt are the company's own non-GAAP measures and definitions. This is analysis of public documents, not investment, legal or tax advice.