BXP boosts liquidity with credit facility and loan extensions

BOSTON - BXP, Inc. (NYSE: BXP), a prominent developer and manager of premier workplaces with a market capitalization of $11.96 billion, has enhanced its financial flexibility by amending and extending its credit facilities and commercial paper program. According to InvestingPro data, the company maintains a FAIR financial health score and is expected to see net income growth this year. The company’s operating partnership, Boston Properties Limited Partnership (BPLP), announced the extension of its unsecured revolving credit facility’s maturity date to March 2030 and increased its borrowing capacity from $2 billion to $2.25 billion. Additionally, BPLP has extended its $700 million unsecured term loan facility and expanded its unsecured commercial paper program by $250 million to a new limit of $750 million.

These strategic financial moves are designed to bolster liquidity and support BXP’s continued investment in high-quality workplaces, aiming to generate long-term value for clients and shareholders. The company’s commitment to shareholder returns is evidenced by its impressive 29-year streak of consecutive dividend payments, currently offering a 5.79% yield. Mike LaBelle, BXP’s Executive Vice President, CFO, and Treasurer, highlighted the transactions as evidence of the company’s strong banking relationships and consistent access to capital. For deeper insights into BXP’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

The updated commercial paper program now allows BPLP to issue notes up to $750 million with maturities of up to one year. As of last Monday, BPLP had $500 million outstanding under this program at a weighted-average interest rate of 4.66%.

In terms of interest rates, the revolving credit facility carries a facility fee of 0.20% per annum with variable interest rate loans set at Term SOFR plus 0.85%. The term loan’s interest rate is also variable, currently at Term SOFR plus 1.05%.

The successful restructuring of these financial instruments was facilitated by BofA Securities, Inc. and JPMorgan Chase Bank, N.A., which acted as Joint Lead Arrangers and Joint Bookrunners. Several other banks participated as Documentation Agents or in the amended credit facility.

BXP, recognized as the largest publicly traded developer, owner, and manager of premier workplaces in the U.S., focuses on six major markets and has a portfolio that includes 185 properties, totaling 53.3 million square feet, as of December 31, 2024. The company, operating as a real estate investment trust (REIT), has been delivering spaces that foster progress for over half a century. InvestingPro analysis indicates the stock is currently undervalued, with analysts maintaining positive profitability forecasts for the year ahead.

This financial update is based on a press release statement from BXP, Inc.

In other recent news, Boston Properties reported its fourth-quarter 2024 earnings, revealing a significant miss in earnings per share (EPS) expectations, with an EPS of -$1.45 compared to the forecasted $0.48. Despite this shortfall, the company exceeded revenue projections, posting $858.6 million against the expected $836.85 million. In a move to expand its portfolio, Boston Properties announced a joint venture to develop a new residential project in Jersey City, New Jersey, which will include 670 market-rate residential units. The company will hold a 19% equity interest in the venture and contribute $65 million in preferred equity. Analyst firm Jefferies initiated coverage on Boston Properties with a Buy rating, projecting occupancy gains and a return to growth in 2026. Meanwhile, KeyBanc maintained a Sector Weight rating, anticipating a stabilization of occupancy rates in the second half of 2025. These developments come as Boston Properties continues to navigate challenges and opportunities within the real estate sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.