Leases (Tables)

12 Months Ended

Dec. 31, 2025

Lessee, Lease, Description [Line Items]

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.

Lessee, Operating Lease, Disclosure

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.

Lessee, Operating Lease, Liability, Maturity

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

_______________

(1)Operating lease payments in 2028 includes 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.

Finance Lease, Liability, Maturity

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

_______________

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

_______________

Lessor, Lease, Description [Line Items]

Operating Lease, Lease Income [Table Text Block]

Lessor

Operating Leases

The following table summarizes the components of lease revenue recognized during the years ended December 31, 2025, 2024 and 2023 included within the Company's Consolidated Statements of Operations (in thousands):


	Year ended December 31,
Lease Revenue	2025		2024		2023
Fixed contractual payments	$	2,644,155	$	2,605,272	$	2,503,106
Variable lease payments	590,743		570,541		550,641
Sales-type lease	1,109		992		926
	$	3,236,007	$	3,176,805	$	3,054,673

Lessor, Operating Lease, Payments to be Received, Maturity

The future contractual lease payments to be received (excluding operating expense reimbursements and percentage rent) by the Company as of December 31, 2025, under non-cancelable operating leases which expire on various dates through 2050 (in thousands):


Years Ending December 31,
2026	$	2,543,021
2027	2,626,022
2028	2,565,897
2029	2,426,161
2030	2,299,682
Thereafter	14,485,854

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

The following table provides the future contractual payments to be received as of December 31, 2025 (in thousands):


	December 31, 2025
2026	$	367
2027	755
2028	775
2029	795
2030	815
Thereafter	265,865
Total lease payments to be received	269,372
Less:
Interest portion	253,443
Sales-type lease receivable	15,929
Unguaranteed residual asset	24
Current expected credit loss adjustment	(281)
Sales-type lease receivable, net	$	15,672

The following table provides the future contractual payments to be received as of December 31, 2024 (in thousands):


	December 31, 2024
2025	$	124
2026	321
2027	754
2028	775
2029	793
Thereafter	266,745
Total lease payments to be received	269,512
Less:
Interest portion	254,589
Sales-type lease receivable	14,923
Unguaranteed residual asset	19
Current expected credit loss adjustment	(285)
Sales-type lease receivable, net	$	14,657

BXP, Inc. 10-K