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Shares of Boston Properties, Inc. (BXP - Analyst Report) reached a new 52-week high, touching $120.16 during the trading session on May 9 as it gained momentum after reporting decent first-quarter 2014 results. The closing price of $119.43 of this real estate investment trust (REIT) reflected a strong year-to-date return of 19.7%. The trading volume for the session was around 0.7 million shares.

Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its expected year-over-year funds from operations (FFO) per share growth of 7.18% for 2014.

Growth Drivers

Although one-time expenses hurt Boston Properties’ FFO, higher revenue growth in the first quarter helped it to sail over the tides. The company’s concentration on few select high-rent, high barrier-to-entry geographic markets bodes well. Also, the recovering office market promises bright prospects.

On Apr 29, Boston Properties reported first-quarter 2014 FFO per share of $1.20, which missed the Zacks Consensus Estimate by 3 cents due to the rise in utilities and snow removal expenditures incurred for its Northeast assets as well as the timing difference in its general and administrative expense. Nevertheless, the FFO per share came 13.2% ahead of the prior-year quarter figure of $1.06, thanks to the significant rental revenue growth.

Over the last 7 days, the Zacks Consensus Estimate for full-year 2014 and 2015 FFO per share remained stable at $5.29 and $5.74 per share, respectively.

Other Stocks to Consider

Some other REITs that reached 52-week highs on May 9 includeVornado Realty Trust (VNO - Analyst Report), UDR, Inc. (UDR - Analyst Report) and Chatham Lodging Trust (CLDT - Snapshot Report). They reached 52-week highs of $105.68, $27.11 and $22.02, respectively.

Note: Funds from operations, a widely accepted and reported measure of REITs performance, are derived by adding depreciation, amortization and other non-cash expenses to net income.

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