Real Estate

6 Months Ended

Jun. 30, 2025

3. Real Estate

BXP

Real estate consisted of the following at June 30, 2025 and December 31, 2024 (in thousands):


	June 30, 2025		December 31, 2024
Land	$	5,319,076	$	5,318,724
Right of use assets - finance leases	372,839		372,922
Right of use assets - operating leases	325,670		334,767
Land held for future development (1)	748,198		714,050
Buildings and improvements	17,244,256		17,149,702
Tenant improvements	4,008,371		3,866,371
Furniture, fixtures and equipment	60,486		57,136
Construction in progress	1,047,687		764,640
Total	29,126,583		28,578,312
Less: Accumulated depreciation	(7,863,743)		(7,528,057)
	$	21,262,840	$	21,050,255

_______________

(1)Includes pre-development costs.

BPLP

Real estate consisted of the following at June 30, 2025 and December 31, 2024 (in thousands):


	June 30, 2025		December 31, 2024
Land	$	5,224,406	$	5,224,015
Right of use assets - finance leases	372,839		372,922
Right of use assets - operating leases	325,670		334,767
Land held for future development (1)	748,198		714,050
Buildings and improvements	16,972,818		16,878,146
Tenant improvements	4,008,371		3,866,371
Furniture, fixtures and equipment	60,486		57,136
Construction in progress	1,047,687		764,640
Total	28,760,475		28,212,047
Less: Accumulated depreciation	(7,730,220)		(7,397,882)
	$	21,030,255	$	20,814,165

_______________

(1)Includes pre-development costs.

Development

On January 16, 2025, the Company partially placed in-service Reston Next Retail, a retail project with approximately 30,000 net rentable square feet located in Reston, Virginia.

On March 31, 2025, the Company commenced the redevelopment of 1050 Winter Street, an approximately 162,000 net rentable square foot office property located in Waltham, Massachusetts. On April 5, 2025, 1050 Winter Street was partially placed in-service (See Note 14). The project is fully pre-leased.

Disposition

On June 27, 2025, the Company entered into a joint venture with a third party to redevelop, own and operate 17 Hartwell Avenue in Lexington, Massachusetts. The Company sold the land at 17 Hartwell Avenue to the joint venture for approximately $21.8 million in cash. Upon formation of the joint venture, the Company ceased accounting for the property on a consolidated basis and is accounting for the joint venture on an unconsolidated basis using the equity method of accounting, as it does not have a controlling financial or operating interest in the joint venture (See Note 5). The Company recognized a gain upon sale of the real estate of approximately $18.4 million for BXP and $18.5 million for BPLP during the three and six months ended June 30, 2025, within Gain on Sale of Real Estate on the respective Consolidated Statement of Operations, as the fair value of the real estate exceeded its carrying value. 17 Hartwell Avenue contributed approximately $0.1 million and $0.3 million of net loss to the Company for the period from April 1, 2025 through June 26, 2025 and January 1, 2025 through June 26, 2025, respectively, and contributed approximately $23,000 and $0.3 million of net income to the Company for the three and six months ended June 30, 2024, respectively. 17 Hartwell Avenue was an approximately 30,000 net rentable square feet office property, that was taken out of service during the three months ended June 30, 2024, and was held for future redevelopment. The Company commenced demolition of the building during the three months ended June 30, 2025.