BXP · 10-Q · 2026Q2 · Full report

Interest Rate Environment

BXP, Inc. · 2026-08-06 · Importance 29 · Surprise 24 · In source text

BXP states that elevated financing costs and broader economic uncertainty continue to influence real estate investment and occupier decision-making in 2026. Higher interest rates may increase the cost and reduce the availability of financing for acquisitions, developments and refinancing. BXP reports that debt and equity capital have become more available at more attractive pricing, supporting capital markets activity and capital recycling. The company expects this improved financing backdrop to facilitate strategic asset sales and other 2026 capital initiatives.

Key facts

• Increases to interest expense for the six months ended June 30, 2026 included $10,000 thousand due to issuance of $1.0 billion aggregate principal of 2.000% exchangeable senior notes due 2030 on September 29, 2025 and $2,062 thousand amortization of financing fees, total increases $12,740 thousand. source
• Decreases to interest expense for the six months ended June 30, 2026 included $(15,348) thousand from repayment of $1.0 billion aggregate principal of 3.650% senior notes due 2026 on February 2, 2026 and $(7,477) thousand decrease associated with unsecured term loans and the unsecured credit facility, net, among other items, total decreases $(33,449) thousand. source
• Interest expense decreased by approximately $20.7 million for the six months ended June 30, 2026 compared to 2025. source
• As of June 30, 2026, BXP had $600.0 million of interest rate swaps outstanding (hedge accounting elected) with a fair value of approximately $1.6 million. source

Impact estimates