BXP, Inc.BXP
BXP, Inc. Leases Disclosure
Lessee
The following table provides lease cost information for the Company’s operating and finance leases for the years ended December 31, 2025, 2024 and 2023 (in thousands):
| Year ended December 31, | ||||||||||||||||||||
| Lease costs | 2025 | 2024 | 2023 | |||||||||||||||||
| Operating lease costs (1) | $ | 14,620 | $ | 14,583 | $ | 14,451 | ||||||||||||||
| Finance lease costs | ||||||||||||||||||||
| Amortization of right of use asset (2) | $ | 2,937 | $ | 3,093 | $ | 2,821 | ||||||||||||||
| Interest on lease liabilities (3) | $ | 21,849 | $ | 13,374 | $ | 13,747 | ||||||||||||||
_______________
(1)One of the operating leases relates to an asset that was in development for the year ended December 31, 2025, and predevelopment for the year ended December 31, 2024 and a portion of the year ended December 31, 2023. As such, the operating lease costs were capitalized.
(2)The finance leases relate to either land, buildings or assets that are/were in development. For land leases classified as finance leases because of a purchase option that the Company views as an economic incentive, the Company follows its existing policy and does not depreciate land because it is assumed to have an indefinite life. For all other finance leases, the Company would amortize the right of use asset over the shorter of the useful life of the asset or the lease term. If the finance lease relates to a property under development, the amortization of the right of use asset may be eligible for capitalization. For assets under development, depreciation may commence once the asset is placed in-service and depreciation would be recognized in accordance with the Company’s policy.
(3)One of the finance leases relates to an asset under development for a portion of the year ended December 31, 2023. As such, a portion of the interest amount was capitalized. There were no finance leases related to assets under development for the years ended December 31, 2024 and 2025.
The following table provides other quantitative information for the Company’s operating and finance leases as of December 31, 2025 and December 31, 2024:
| Other information | December 31, 2025 | December 31, 2024 | ||||||||||||
| Operating Leases (1) | ||||||||||||||
| Number of cancelable leases | — | 1 | ||||||||||||
| Number of non-cancelable leases | 6 | 5 | ||||||||||||
| Longest lease expiration date | 7/1/2125 | 7/1/2125 | ||||||||||||
| Weighted-average remaining lease term (in years) | 71 | 72 | ||||||||||||
| Weighted-average discount rate | 6.6 | % | 6.5 | % | ||||||||||
| Finance Leases | ||||||||||||||
| Number of cancelable leases | — | — | ||||||||||||
| Number of non-cancelable leases | 5 | 5 | ||||||||||||
| Longest lease expiration date | 11/1/2094 | 11/1/2094 | ||||||||||||
| Weighted-average remaining lease term (in years) | 61 | 61 | ||||||||||||
| Weighted-average discount rate | 6.2 | % | 6.2 | % | ||||||||||
(1)The Company has ground leases that are subject to variable payments and extension options. None of the leases contain residual value guarantees.
The following table provides a maturity analysis for the Company’s lease liabilities related to its operating and finance leases as of December 31, 2025 (in thousands):
| Operating | Finance | ||||||||||
| 2026 | $ | 28,998 | $ | 31,686 | |||||||
| 2027 | 17,807 | 32,434 | |||||||||
| 2028 (1) | 40,762 | 118,252 | |||||||||
| 2029 | 22,428 | 10,793 | |||||||||
| 2030 | 21,149 | 10,995 | |||||||||
| Thereafter | 3,705,092 | 1,320,418 | |||||||||
| Total lease payments | 3,836,236 | 1,524,578 | |||||||||
| Less: | |||||||||||
| Interest portion | 3,447,023 | 1,164,539 | |||||||||
| Present value of lease payments | $ | 389,213 | $ | 360,039 | |||||||
_______________
(1)Operating lease payments in 2028 include an approximately $25.1 million final rental payment related to a ground lease the Company is reasonably certain it will commence construction on in 2028. Finance lease payments in 2028 include approximately $105.3 million related to a purchase option that the Company was reasonably certain it would exercise upon execution of the ground leases. There can be no assurance that the Company will ultimately commence construction on the ground lease site or exercise its ground lease purchase option on the schedule currently contemplated or at all.
The following table provides a maturity analysis for the Company’s lease liabilities related to its operating and finance leases as of December 31, 2024 (in thousands):
| Operating | Finance | ||||||||||
| 2025 | $ | 40,451 | $ | 30,801 | |||||||
| 2026 | 34,155 | 33,280 | |||||||||
| 2027 | 10,635 | 32,768 | |||||||||
| 2028 (1) | 40,462 | 118,252 | |||||||||
| 2029 | 21,710 | 10,793 | |||||||||
| Thereafter | 3,527,328 | 1,331,413 | |||||||||
| Total lease payments | 3,674,741 | 1,557,307 | |||||||||
| Less: | |||||||||||
| Interest portion | 3,282,055 | 1,186,422 | |||||||||
| Present value of lease payments | $ | 392,686 | $ | 370,885 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.