[NYguy]

https://www.crainsnewyork.com/real-estate/bxp-cuts-dividend-30-pay-development-343-madison-ave

BXP cuts dividend by 30% to pay for development of 343 Madison Ave.


AARON ELSTEIN
September 8, 2025

Developer BXP lowered its dividend by 30% and will use the savings to help pay for the $2 billion office tower that is starting to rise up at 343 Madison Ave.

BXP, one of the nation’s largest office landlords, said Monday that lowering its payout to 70 cents a share from 98 cents will help it retain $50 million in cash every quarter that otherwise would have been gone to shareholders.

“When you launch something like 343, our needs for capital are greater, and $50 million a quarter is very significant,” CEO Owen Thomas said at an investor conference Monday morning.

BXP’s capital needs for the 1 million-square-foot tower grew when Norges Bank unexpectedly backed out in July as a 45% partner at 343 Madison. The $1.7 trillion-in-assets Norwegian sovereign wealth fund hasn’t explained why it stepped away from financing the new tower, but last week it agreed to buy an older one at 1177 Sixth Ave. for $571 million from Silverstein Properties and the California State Teachers Retirement System.

At Monday’s conference, BXP officials made it clear they are all-in when it comes to developing 343 Madison. It’s considered the best development site in Manhattan because it’s connected directly to Grand Central Terminal and close to Park Avenue, which analysts say has the lowest vacancy rate in the city and commands top rents. Although none of the space is leased at 343 Madison, which recently began vertical construction, BXP said one potential tenant has signed a letter of intent for 30% of the space.

In addition to cutting its dividend, BXP is also looking for a new partner to shoulder as much as half of 343 Madison’s development cost. Securing a partner would help BXP obtain a $1 billion construction loan, Thomas said, and reduce its share of the cost to as little as $500 million.

If a new partner can’t be found, Thomas indicated the firm is prepared to finance the tower on its own. He said BXP is trying to raise $1 billion by selling land. It is also ready to part with office buildings in suburban locations.