Boston Properties Inc. (BXP Quick QuoteBXP - Free Report) has priced public offering of $1 billion senior unsecured notes. The 2.750% senior notes, due in 2026 is likely to add to the financial flexibility of the Boston, MA-based real estate investment trust (“REIT”).

Boston Properties owns and develops Class A office real estates in the U.S. and it expects to accrue net proceeds of around $984.8 million. The offering is likely to be completed on Aug 17, 2016. The company intends to utilize the proceeds for debt repayment, settlement of interest rate swap contracts and other general purposes. The remaining proceeds, if any, would be invested in short-term securities.

Notably, on Jul 26, Boston Properties reported second-quarter 2016 funds from operations (“FFO”) per share of $1.43 backed by higher revenues. Reported FFO was above both the Zacks Consensus Estimate of $1.40 and the year-ago figure of $1.36. The quarterly FFO per share was notably higher than the REIT’s previously guided range of $1.36–$1.38, thanks to the earlier-than-anticipated tenant termination income and better-than-expected portfolio operations.

BOSTON PPTYS Price

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Currently, Boston Properties has a Zacks Rank #3 (Hold). Investors interested in the REIT sector can consider stocks like Apple Hospitality REIT, Inc. (APLE Quick QuoteAPLE - Free Report) , Communications Sales & Leasing, Inc. and CoreSite Realty Corporation (COR Quick QuoteCOR - Free Report) . Each of these stocks carries a Zacks Rank #2 (Buy).

Note: All EPS numbers presented in this write-up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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