BXP · 10-Q · 2026Q3 · Full report

Interest Expense Trends

BXP, Inc. · 2026-11-06 · Importance 20 · Surprise 24 · In source text

Interest expense decreased approximately $25.9 million for the nine months ended September 30, 2026 compared with 2025. Repayment of $1.0 billion of 3.650% senior notes due 2026 reduced expense by $24.6 million, and lower interest on unsecured term loans and the unsecured credit facility reduced it by $13.2 million. These decreases were partly offset by $14.9 million of expense from the $1.0 billion 2.000% exchangeable notes due 2030 and $3.7 million from the $700 million 6.050% unsecured senior notes due 2036 issued in August 2026. At September 30, 2026, variable-rate borrowings included $947.0 million under the 2025 Credit Facility, $750.0 million of commercial paper, and $80.1 million on the 343 Madison Avenue construction loan.

Key facts

• The 343 Madison Avenue construction loan has a $1.2 billion borrowing capacity, bears interest at Term SOFR plus 2.50%, reducible to Term SOFR plus 2.25% upon specified leasing and construction milestones, and has a one-year extension option.
• BXP’s consolidated debt had a weighted-average stated interest rate of 4.01%, a GAAP rate of 4.15%, and a weighted-average maturity of 3.5 years as of September 30, 2026.
• Repayment of $1.0 billion principal of 3.650% senior notes due 2026 on February 2, 2026 reduced nine-month interest expense by $24.559 million.
• BXP interest expense decreased approximately $25.9 million for the nine months ended September 30, 2026 compared with 2025.
• BXP's interest and other income decreased approximately $0.8 million for the nine months ended September 30, 2026 compared with 2025, primarily due to lower interest income, partly offset by a $5.6 million reserve in 2025 for unpaid default interest on a related-party note receivable.
• BXP interest expense decreased approximately $5.2 million for the three months ended September 30, 2026 compared with 2025.

Impact estimates