BXP, Inc. 8-K

What Happened

• On May 27, 2026, a subsidiary of Boston Properties Limited Partnership (BPLP) entered into an agreement to sell the leasehold and improvements known as Sumner Square (three buildings at 1615 M St., 1625 M St., and 1215 17th St., NW) in Washington, DC for a gross purchase price of $63.0 million.
• Because the carrying value of the Property exceeds expected net proceeds, BXP, Inc. (the Company) will record a non‑cash impairment loss of approximately $18 million and BPLP will record approximately $17 million in the second quarter of 2026, in accordance with GAAP. The buyer paid a non‑refundable deposit of about $6 million, which will be credited at closing. The sale is not guaranteed to close on the current terms or at all.

Key Details

• Sale date / agreement: May 27, 2026.
• Gross purchase price: $63.0 million; non‑refundable deposit: ≈ $6.0 million.
• Impairment: ≈ $18 million recognized by BXP, ≈ $17 million recognized by BPLP in Q2 2026.
• Estimated EPS impact: reduces net income attributable to BXP and BPLP by ~ $0.10 per diluted share/unit for Q2 and full year 2026; no impact on Funds From Operations (FFO).

Why It Matters

• The charge is a non‑cash GAAP impairment that will reduce reported net income and diluted EPS by about $0.10, which investors may see in quarterly GAAP results.
• The impairment does not affect FFO, a common real‑estate metric used to evaluate operating performance, so cash operating performance metrics remain unchanged.
• The sale remains subject to closing; if the transaction terms change or the sale fails, reported results and future disclosures could differ.