BXP slashes quarterly dividend by 29% as part of strategic reset

Published 08/09/2025, 13:22
BXP slashes quarterly dividend by 29% as part of strategic reset

NEW YORK - BXP, Inc. (NYSE:BXP), the largest publicly traded developer and owner of premier workplaces in the United States, with a market capitalization of $13.58 billion, announced today a significant reduction in its quarterly dividend as part of a broader strategic plan unveiled at its Triennial Investor Day in New York. According to InvestingPro data, the stock has shown strong momentum recently, though technical indicators suggest it may be overbought.

The company’s Board of Directors declared a quarterly cash dividend of $0.70 per share for the period ending September 30, 2025, representing a 29% decrease from the previous $0.98 per share. The dividend is payable on October 31 to shareholders of record as of September 30. Notably, InvestingPro data shows BXP has maintained dividend payments for 29 consecutive years, with the current yield at 5.1%.

According to the company, this dividend reset will allow BXP to retain approximately $50 million in additional cash each quarter. The company plans to reinvest these funds in development projects, including 343 Madison Avenue in New York, while strengthening its balance sheet and supporting long-term growth objectives.

During today’s investor event, BXP’s leadership team, including Chairman and CEO Owen Thomas, President Douglas Linde, and CFO Michael LaBelle, outlined the company’s strategy to grow funds from operations (FFO) per share while reducing leverage.

The company’s strategic priorities focus on increasing occupancy across its gateway market portfolio, delivering well-leased development projects, selling non-core assets, resetting the dividend, and securing private equity partnerships on select properties.

BXP’s portfolio encompasses 53.7 million square feet across 186 properties in six markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC, according to information based on a press release statement from the company. With a gross profit margin of 60.3% and revenue growth of 2.9% over the last twelve months, InvestingPro analysis reveals 8 additional key insights available for subscribers, including detailed valuation metrics and growth prospects.

In other recent news, Boston Properties (BXP) reported its Q2 2025 earnings, showcasing a notable earnings per share (EPS) beat. The company posted an EPS of $0.56, surpassing the forecasted $0.41. Despite this positive earnings surprise, the company’s stock experienced a decline in after-hours trading. The market reaction might be influenced by wider concerns within the office real estate sector. Boston Properties also raised its full-year guidance, indicating a positive outlook for the remainder of the year. Analysts and investors are closely monitoring these developments, as they could have implications for future performance. The earnings results are a key highlight for stakeholders, providing insights into the company’s financial health.

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