Office REITs

credit / rates affecting interest expense

“Interest Expense The following table sets forth our gross interest expense and capitalized interest: Three Months Ended March 31, 2026 2025 Dollar Change Percentage Change ($ in thousands) Gross interest expense $ 52,502 $ 51,696 $ 806 1.6 % Capitalized interest (13,991) (20,548) 6,557 (31.9) % Interest expense $ 38,511 $ 31,148 $ 7,363 23.6 % Average Qualifying Costs $ 1,255,177 $ 1,866,242 $ (611,065) (32.7) % Weighted Average Interest and Loan Fee Amortization Rate 4.46 % 4.40 % 0.06 % Gross interest expense, before the effect of capitalized interest, increased $0.8 million, or 1.6%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to an increase in the weighted average interest rate for the three months ended March 31, 2026.”

KRC 10-Q

credit / rates

“Our rental rates and occupancy are impacted by general economic conditions, including the pace of regional economic growth and access to capital.”

KRC 10-Q

restructuring affecting revenue

“86 Table of Contents Funds from Operations Pursuant to the revised definition of FFO adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), we calculate FFO for each of BXP and BPLP by adjusting net income attributable to BXP, Inc. and net income attributable to Boston Properties Limited Partnership (computed in accordance with GAAP), respectively, for gains (or losses) from sales of properties, including a change in control, impairment losses on depreciable real estate consolidated on our balance sheet, impairment losses on our investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and our share of real estate-related depreciation and amortization.”

BXP 10-K