BXP · 10-Q · 2026Q3 · Full report

REIT Dividend Requirements

BXP, Inc. · 2026-11-06 · Importance 10 · Surprise 6

BXP must distribute at least 90% of annual taxable income, excluding capital gains and subject to certain adjustments, to qualify as a REIT. Its policy is to distribute at least 100% of taxable income, including capital gains, to avoid federal tax. The Board will evaluate the dividend rate against actual and projected taxable income, including gains on sales, liquidity needs, and other circumstances; future declared dividends may differ materially from the current quarterly amount. For asset-sale gains that cannot be efficiently reinvested on a tax-deferred basis, BXP may choose among a special dividend, stock repurchases, debt reduction, or retaining cash, and expects to distribute at least enough to avoid corporate-level tax on applicable gains.

Key facts

• BXP’s Board will evaluate the dividend rate based on actual and projected taxable income, liquidity needs, and other circumstances; future dividends may differ materially from the current quarterly amount.
• If BXP sells assets at a gain and cannot efficiently use proceeds tax-deferred, it expects to distribute at least the proceeds necessary to avoid corporate-level tax on the gains.
• BXP’s policy is to distribute at least 100% of taxable income, including capital gains, to avoid paying federal tax; REIT rules require at least 90% of annual taxable income to be distributed, subject to stated adjustments.