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) Q1 FFO Meets Estimates, Revenues Up
Read MoreHide Full Article
Boston Properties Inc.’s (BXP - Free Report) first-quarter 2018 funds from operations (FFO) per share of $1.49 was in line with the Zacks Consensus Estimate. The figure was also higher than the year-ago quarter’s tally of $1.48. In addition, quarterly FFO per share was within the company’s previously guided range of $1.47-$1.49.
Adjusted revenues, comprising base rent and recoveries from tenants during the quarter, increased 3.7% year over year to $614.6 million. The figure also comfortably surpassed the Zacks Consensus Estimate of $604.5 million. The rise was attributable to increases in both the revenue components.
Property Update
As of Mar 31, 2018, Boston Properties’ portfolio comprised 179 properties, covering a total of around 50.3 million square feet. This included 13 under development properties, covering an area of 6.5 million square feet.
The overall operating portfolio, including 163 properties (excluding two residential properties and hotel), was 90.5% leased as of Mar 31, 2018.
Portfolio Activity
During the first quarter, Boston Properties entered an agreement with Leidos to construct a build-to-suit project which would include a Class A office space at company's 17Fifty Presidents Street development project located in Reston, VA, having about 276,000 net rentable square feet. The development of the project has started and will be ready for occupancy by the second quarter of 2020.
Further, the company partly placed 508 apartments and retail spaces in service, spanning across 515,000 square feet, situated in Reston, VA. Also, Boston Properties entered a binding lease agreement with Fannie Mae for its Reston Gateway project in Reston, VA. Per the agreement, the company will lease approximately 850,000 rentable square feet of space to Fannie Mae out of nearly 1.1 million net rentable square feet, which is to be constructed on the Reston Gateway property. The construction, which awaits a few approvals, will begin during the second half of 2018.
Liquidity Decreases
Boston Properties exited the first quarter with cash and cash equivalents of around $294.6 million, down from $434.8 million as of Dec 31, 2017.
Outlook
Boston Properties updated its full-year 2018 FFO per share guidance to $6.27-$6.36 from $6.23-$6.36 provided earlier. The Zacks Consensus Estimate is pegged at $6.31.
The company projects its second-quarter 2018 FFO per share of $1.53-$1.55. The Zacks Consensus Estimate stands at $1.58.
Our Viewpoint
Boston Properties is well poised for growth, with the support of properties located in select high-rent, high barrier-to-entry geographic markets and diversified tenants along with industry base. In fact, ownership of properties in strategic areas enabled Boston Properties to enter into a lease agreement with Fannie Mae for its Virginia property, which is currently under construction. Also, with economic improvement and recovery in the job market, healthy growth in the demand for office spaces is expected to strengthen the company’s growth opportunities.
However, the market is witnessing growth in the supply of office spaces, which remains a concern as higher supply usually leads to lesser absorption and curtails the landlord’s capability to demand more rent. A few big financial players are resizing their businesses and trying to cut costs, which is affecting demand for office spaces. Further, rate hike adds to its woes.
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities, Inc. (ARE - Free Report) , Regency Centers Corporation (REG - Free Report) and Welltower Inc. (WELL - Free Report) . Alexandria and Regency Centers are scheduled to release results on Apr 30 while WELL is slated to report numbers on May 1.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Boston Properties (BXP) Q1 FFO Meets Estimates, Revenues Up
Boston Properties Inc.’s (BXP - Free Report) first-quarter 2018 funds from operations (FFO) per share of $1.49 was in line with the Zacks Consensus Estimate. The figure was also higher than the year-ago quarter’s tally of $1.48. In addition, quarterly FFO per share was within the company’s previously guided range of $1.47-$1.49.
Adjusted revenues, comprising base rent and recoveries from tenants during the quarter, increased 3.7% year over year to $614.6 million. The figure also comfortably surpassed the Zacks Consensus Estimate of $604.5 million. The rise was attributable to increases in both the revenue components.
Property Update
As of Mar 31, 2018, Boston Properties’ portfolio comprised 179 properties, covering a total of around 50.3 million square feet. This included 13 under development properties, covering an area of 6.5 million square feet.
The overall operating portfolio, including 163 properties (excluding two residential properties and hotel), was 90.5% leased as of Mar 31, 2018.
Portfolio Activity
During the first quarter, Boston Properties entered an agreement with Leidos to construct a build-to-suit project which would include a Class A office space at company's 17Fifty Presidents Street development project located in Reston, VA, having about 276,000 net rentable square feet. The development of the project has started and will be ready for occupancy by the second quarter of 2020.
Further, the company partly placed 508 apartments and retail spaces in service, spanning across 515,000 square feet, situated in Reston, VA.
Also, Boston Properties entered a binding lease agreement with Fannie Mae for its Reston Gateway project in Reston, VA. Per the agreement, the company will lease approximately 850,000 rentable square feet of space to Fannie Mae out of nearly 1.1 million net rentable square feet, which is to be constructed on the Reston Gateway property. The construction, which awaits a few approvals, will begin during the second half of 2018.
Liquidity Decreases
Boston Properties exited the first quarter with cash and cash equivalents of around $294.6 million, down from $434.8 million as of Dec 31, 2017.
Outlook
Boston Properties updated its full-year 2018 FFO per share guidance to $6.27-$6.36 from $6.23-$6.36 provided earlier. The Zacks Consensus Estimate is pegged at $6.31.
The company projects its second-quarter 2018 FFO per share of $1.53-$1.55. The Zacks Consensus Estimate stands at $1.58.
Our Viewpoint
Boston Properties is well poised for growth, with the support of properties located in select high-rent, high barrier-to-entry geographic markets and diversified tenants along with industry base. In fact, ownership of properties in strategic areas enabled Boston Properties to enter into a lease agreement with Fannie Mae for its Virginia property, which is currently under construction. Also, with economic improvement and recovery in the job market, healthy growth in the demand for office spaces is expected to strengthen the company’s growth opportunities.
However, the market is witnessing growth in the supply of office spaces, which remains a concern as higher supply usually leads to lesser absorption and curtails the landlord’s capability to demand more rent. A few big financial players are resizing their businesses and trying to cut costs, which is affecting demand for office spaces. Further, rate hike adds to its woes.
The company 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 and EPS Surprise | Boston Properties, Inc. Quote
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities, Inc. (ARE - Free Report) , Regency Centers Corporation (REG - Free Report) and Welltower Inc. (WELL - Free Report) . Alexandria and Regency Centers are scheduled to release results on Apr 30 while WELL is slated to report numbers on May 1.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them>>