Shares of BXP Inc., a real estate investment trust focused on office properties, plunged more than 5% on Monday following the company's third-quarter earnings report. While BXP's funds from operations (FFO) per share came in line with estimates, several concerning factors weighed on investor sentiment.

One key issue was BXP's higher interest expenses during the quarter, which increased by 10.4% year-over-year to $163.2 million. Rising interest rates have been a major headwind for real estate companies reliant on debt financing. Higher borrowing costs directly impact profitability and cash flows.

Additionally, while BXP's FFO met expectations, the figure showed a 2.7% decline compared to the same quarter last year. This year-over-year decrease raised concerns about the company's growth trajectory and ability to drive earnings expansion.