We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boston Properties (BXP) Q3 FFO & Revenues Surpass Estimates
Read MoreHide Full Article
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2022 funds from operations (FFO) per share of $1.91 outpaced the Zacks Consensus Estimate of $1.87. The figure increased 10.4% year over year.
BXP’s quarterly results reflect healthy leasing activity alongside year-over-year growth in the top line. It also carried out strategic acquisitions, redevelopments and dispositions during the quarter. The company tweaked its 2022 outlook for FFO.
Quarterly revenues from lease came in at $739.3 million, which surpassed the consensus mark of $726.8 million. Moreover, the figure rose 6.8% from $692.3 million reported in the year-ago quarter.
Quarter in detail
Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $704.9 million, growing 3.6% year over year. The same for the hotel & residential segment aggregated $26.1 million, indicating a whopping jump of 62.2% year over year.
BXP’s share of same property net operating income (NOI) on a cash basis (excluding termination income) totaled $473.5 million, up 9.3% year over year.
Its share of EBITDAre (on a cash basis) as of Sep 30, 2022, was $429.5 million, down from $433.2 million as of Jun 30, 2022.
As of Sep 30, 2022, Boston Properties’ portfolio comprised 193 properties, encompassing 53.5 million square feet of space. This included 14 properties under construction/redevelopment.
During the third quarter, the company executed 1.4 million square feet of leases, marking the strongest third quarter leasing volume since 2019.
BXP acquired 125 Broadway, a six-story, 271,000 square feet laboratory/life sciences property in Kendall Square in Cambridge, MA, for roughly $592.4 million, inclusive of transaction costs. The building is located adjacent to BXP’s existing 2.2 million square feet portfolio in Kendall Square and is 100% leased.
To facilitate the conversion and expansion of 125 Broadway, BXP and Biogen Inc. terminated the latter’s lease at 300 Binney Street in Kendall Square. The 195,000 square feet property will be redeveloped into around 240,000 square feet of laboratory/life sciences space for the new client that has signed a lease for 100% of the space.
The company disposed of 601 Massachusetts Avenue, an 11-story, premier workplace in Washington, DC, encompassing nearly 479,000 square feet, for a gross sale price of $531million. This resulted in a gain on sale of real estate of roughly $237.4 million. The property was initially developed by BXP in 2013 and is presently 98% leased.
Liquidity
Boston Properties exited third-quarter 2022 with $375.8 million, down from $456.5 million as of Jun 30, 2022.
BXP’s share of net debt to EBITDAre annualized was 7.49 as of Sep 30, 2022, up from 7.46 times as of Jun 30, 2022.
Revised 2022 Outlook
Boston Properties tweaked its 2022 outlook.
For 2022, it projects FFO per share in the range of $7.51-$7.53, up from $7.48-$7.53 guided earlier. The Zacks Consensus Estimate for the same is currently pegged at $7.52, which lies in the guided range.
It estimates the increase in BXP’s share of the same property NOI on a cash basis (excluding termination income) to be between 5.75% and 6.25%. The average in-service portfolio occupancy is expected to be in the band of 88.5- 89.5%.
SL Green Realty Corp. (SLG - Free Report) reported third-quarter 2022 FFO per share of $1.66, beating the Zacks Consensus Estimate of $1.64. The company reported FFO per share of $1.83 in the prior-year quarter. On a pro-forma basis, FFO per share in the year-ago period was $1.78.
The results reflect better-than-anticipated revenues. SLG also witnessed decent leasing activity in the quarter and signed several significant leases at its properties. However, the same-store cash NOI fell year over year.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2022 adjusted FFO (AFFO) per share of $1.85, beating the Zacks Consensus Estimate of $1.83. Reported AFFO per share compared favorably with the year-ago period’s $1.77.
The rise in site-rental revenues amid elevated tower space demand aided CCI’s year-over-year top-line growth. It also announced a hike in its quarterly cash dividend payment.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported third-quarter 2022 AFFO per share of $2.13, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.95.
Results reflect decent leasing activity and rental rate growth during the quarter. Year-over-year improvement in the top line was noticeable.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Boston Properties (BXP) Q3 FFO & Revenues Surpass Estimates
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2022 funds from operations (FFO) per share of $1.91 outpaced the Zacks Consensus Estimate of $1.87. The figure increased 10.4% year over year.
BXP’s quarterly results reflect healthy leasing activity alongside year-over-year growth in the top line. It also carried out strategic acquisitions, redevelopments and dispositions during the quarter. The company tweaked its 2022 outlook for FFO.
Quarterly revenues from lease came in at $739.3 million, which surpassed the consensus mark of $726.8 million. Moreover, the figure rose 6.8% from $692.3 million reported in the year-ago quarter.
Quarter in detail
Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $704.9 million, growing 3.6% year over year. The same for the hotel & residential segment aggregated $26.1 million, indicating a whopping jump of 62.2% year over year.
BXP’s share of same property net operating income (NOI) on a cash basis (excluding termination income) totaled $473.5 million, up 9.3% year over year.
Its share of EBITDAre (on a cash basis) as of Sep 30, 2022, was $429.5 million, down from $433.2 million as of Jun 30, 2022.
BXP’s in-service properties occupancy fell 60 basis points sequentially to 88.9%.
Portfolio Activity
As of Sep 30, 2022, Boston Properties’ portfolio comprised 193 properties, encompassing 53.5 million square feet of space. This included 14 properties under construction/redevelopment.
During the third quarter, the company executed 1.4 million square feet of leases, marking the strongest third quarter leasing volume since 2019.
BXP acquired 125 Broadway, a six-story, 271,000 square feet laboratory/life sciences property in Kendall Square in Cambridge, MA, for roughly $592.4 million, inclusive of transaction costs. The building is located adjacent to BXP’s existing 2.2 million square feet portfolio in Kendall Square and is 100% leased.
To facilitate the conversion and expansion of 125 Broadway, BXP and Biogen Inc. terminated the latter’s lease at 300 Binney Street in Kendall Square. The 195,000 square feet property will be redeveloped into around 240,000 square feet of laboratory/life sciences space for the new client that has signed a lease for 100% of the space.
The company disposed of 601 Massachusetts Avenue, an 11-story, premier workplace in Washington, DC, encompassing nearly 479,000 square feet, for a gross sale price of $531million. This resulted in a gain on sale of real estate of roughly $237.4 million. The property was initially developed by BXP in 2013 and is presently 98% leased.
Liquidity
Boston Properties exited third-quarter 2022 with $375.8 million, down from $456.5 million as of Jun 30, 2022.
BXP’s share of net debt to EBITDAre annualized was 7.49 as of Sep 30, 2022, up from 7.46 times as of Jun 30, 2022.
Revised 2022 Outlook
Boston Properties tweaked its 2022 outlook.
For 2022, it projects FFO per share in the range of $7.51-$7.53, up from $7.48-$7.53 guided earlier. The Zacks Consensus Estimate for the same is currently pegged at $7.52, which lies in the guided range.
It estimates the increase in BXP’s share of the same property NOI on a cash basis (excluding termination income) to be between 5.75% and 6.25%. The average in-service portfolio occupancy is expected to be in the band of 88.5- 89.5%.
Boston Properties currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Properties, Inc. Price, Consensus and EPS Surprise
Boston Properties, Inc. price-consensus-eps-surprise-chart | Boston Properties, Inc. Quote
Performance of Other REITs
SL Green Realty Corp. (SLG - Free Report) reported third-quarter 2022 FFO per share of $1.66, beating the Zacks Consensus Estimate of $1.64. The company reported FFO per share of $1.83 in the prior-year quarter. On a pro-forma basis, FFO per share in the year-ago period was $1.78.
The results reflect better-than-anticipated revenues. SLG also witnessed decent leasing activity in the quarter and signed several significant leases at its properties. However, the same-store cash NOI fell year over year.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2022 adjusted FFO (AFFO) per share of $1.85, beating the Zacks Consensus Estimate of $1.83. Reported AFFO per share compared favorably with the year-ago period’s $1.77.
The rise in site-rental revenues amid elevated tower space demand aided CCI’s year-over-year top-line growth. It also announced a hike in its quarterly cash dividend payment.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported third-quarter 2022 AFFO per share of $2.13, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.95.
Results reflect decent leasing activity and rental rate growth during the quarter. Year-over-year improvement in the top line was noticeable.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.