Boston Properties reported fourth-quarter revenue of $877.1 million, up 2.2% from $858.6 million in the year-ago quarter. Net income attributable to the company was $248.5 million, or $1.56 per diluted share, compared to a net loss of $230.0 million, or $(1.45) per share, in the prior year. Funds from operations (FFO) totaled $280.2 million, or $1.76 per diluted share, down from $284.0 million, or $1.79 per share, in Q4 2024 and missing the midpoint of guidance by $0.05. Management attributed the FFO shortfall primarily to non-cash straight-line rent adjustments and higher general and administrative costs.

During Q4, the company executed 87 new leases covering more than 1.8 million square feet, with a weighted-average lease term of 11.3 years. Key agreements included a 274,000-square-foot renewal with an insurance investment firm at 343 Madison Avenue in New York City and a 234,000-square-foot commitment from a global law firm at 2100 M Street in Washington, D.C. At quarter-end, the core CBD portfolio was 89.8% occupied and 92.5% leased, up 50 basis points on each metric sequentially. Overall portfolio occupancy rose to 86.7%, with 89.4% of space leased, reflecting improvements of 70 and 60 basis points, respectively.

Since September 2025, the company completed property dispositions with an aggregate gross sales price of approximately $1.14 billion, generating net proceeds in excess of $1.0 billion. Land sales in Boston, San Francisco and Washington, D.C. contributed net proceeds of $227.1 million and a gain of $67.0 million. Residential dispositions produced $403.7 million in proceeds and $102.9 million in gains, while non-strategic office sales delivered $397.2 million and $65.6 million in gains. In parallel, the company upsized its revolving credit line to $2.25 billion and extended maturities on term debt, demonstrating continued access to capital and strengthening liquidity.

For the first quarter of 2026, management forecasts FFO of $1.56 to $1.58 per share and EPS of $0.32 to $0.34. Full-year 2026 guidance calls for FFO of $6.88 to $7.04 per share, representing growth at the midpoint versus 2025, and EPS of $2.08 to $2.29. Assumptions include positive same-property net operating income growth from higher occupancy and leasing velocity, incremental NOI from new developments, a modest reduction from three properties undergoing residential redevelopment, and increased general and administrative expense of approximately $0.07 per share related to equity-based compensation.