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Boston Properties (BXP) Q3 FFO Misses, Ups 2016 Guidance
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Boston Properties Inc. (BXP - Free Report) reported third-quarter 2016 funds from operations (“FFO”) per share of $1.42, missing the Zacks Consensus Estimate by a cent. However, the bottom line came in a cent higher than the year-ago figure.
Total revenue during the quarter declined 0.7% year over year to $625.2 million. However, the top line comfortably surpassed the Zacks Consensus Estimate of $611 million.
Property Update
As of Sep 30, 2016, Boston Properties’ portfolio comprised 174 properties, covering a total of around 47.7 million square feet of space. This included eight under-development properties, covering an area of 4.0 million square feet.
The overall operating portfolio, comprising 163 properties (excluding two residential properties and one hotel), was 89.6% leased as of Sep 30, 2016. Also, the company closed the sale of a land parcel in Loudoun County, VA for around $18 million.
Liquidity
Boston Properties exited the third quarter with cash and cash equivalents of nearly $419.3 million, down from $723.7 million as of 2015 end. Outlook
The company has updated its full-year guidance to $5.97–$5.99 per share from the previous projection $5.92–$5.99. The Zacks Consensus Estimate of $5.97 lies within the guided range.
It expects its fourth-quarter FFO per share in a range of $1.49–$1.51.
Our Viewpoint
Boston Properties is poised to grow with properties in select high-rent, high barrier-to-entry geographic markets, diversified tenant and industry base, including several bellwethers. Yet, stiff competition and additional supply in some of its markets pose concerns for the company.
Boston Properties currently carries a Zacks Rank #3 (Hold).
Over the past one month period, the quarterly estimates for Ashford Hospitality Prime, CareTrust REIT and Seritage Growth Properties remained unchanged at 41 cents, 27 cents and 57 cents, respectively.
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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Boston Properties (BXP) Q3 FFO Misses, Ups 2016 Guidance
Boston Properties Inc. (BXP - Free Report) reported third-quarter 2016 funds from operations (“FFO”) per share of $1.42, missing the Zacks Consensus Estimate by a cent. However, the bottom line came in a cent higher than the year-ago figure.
Total revenue during the quarter declined 0.7% year over year to $625.2 million. However, the top line comfortably surpassed the Zacks Consensus Estimate of $611 million.
Property Update
As of Sep 30, 2016, Boston Properties’ portfolio comprised 174 properties, covering a total of around 47.7 million square feet of space. This included eight under-development properties, covering an area of 4.0 million square feet.
The overall operating portfolio, comprising 163 properties (excluding two residential properties and one hotel), was 89.6% leased as of Sep 30, 2016. Also, the company closed the sale of a land parcel in Loudoun County, VA for around $18 million.
Liquidity
Boston Properties exited the third quarter with cash and cash equivalents of nearly $419.3 million, down from $723.7 million as of 2015 end.
Outlook
The company has updated its full-year guidance to $5.97–$5.99 per share from the previous projection $5.92–$5.99. The Zacks Consensus Estimate of $5.97 lies within the guided range.
It expects its fourth-quarter FFO per share in a range of $1.49–$1.51.
Our Viewpoint
Boston Properties is poised to grow with properties in select high-rent, high barrier-to-entry geographic markets, diversified tenant and industry base, including several bellwethers. Yet, stiff competition and additional supply in some of its markets pose concerns for the company.
Boston Properties currently carries a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider stocks like Ashford Hospitality Prime, Inc. , CareTrust REIT, Inc. (CTRE - Free Report) and Seritage Growth Properties (SRG - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BOSTON PPTYS Price, Consensus and EPS Surprise
BOSTON PPTYS Price, Consensus and EPS Surprise | BOSTON PPTYS Quote
Over the past one month period, the quarterly estimates for Ashford Hospitality Prime, CareTrust REIT and Seritage Growth Properties remained unchanged at 41 cents, 27 cents and 57 cents, respectively.
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.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>