Boston Properties Inc.’s (BXP - Free Report) second- quarter 2021 funds from operations (FFO) per share of $1.72 beat the Zacks Consensus Estimate of $1.61. The quarterly figure also exceeded the mid-point of the company’s second-quarter guidance by 12 cents, reflecting an improved portfolio performance, and better-than-projected parking, hotel, retail and termination income.
Quarterly revenues from lease came in at $684 million, exceeding the consensus mark of $674.3 million.
The quarterly FFO per share increased 13.2% from the year-ago quarter’s $1.52. The revenues from lease climbed 8.6% year on year.
Concurrent with the earnings release, Boston Properties announced management’s plan for the expansion of its footprint with acquisitions. In an attempt to establish a new market in Seattle, it has agreed to acquire Safeco Plaza, an 800,000-square-foot Class A office building for a gross purchase price of $465 million. The deal is expected to close in September 2021, and BXP expects to acquire this property in a joint venture (JV) and own up to a 51% interest in the JV.
The company has also agreed to acquire 360 Park Avenue South , an office property in the Midtown South submarket of Manhattan, NY, for roughly $300 million, as well as Shady Grove Bio+Tech Campus in Rockville, MD for $116.5 million.
Inside the Headline Numbers
During the second quarter, the company signed roughly 1.2 million square feet of leases with a weighted-average lease term of 7.5 years. This marks leasing volume of more than double the total square feet of leases executed during first-quarter 2021.
As of Jun 30, 2021, Boston Properties’ portfolio comprised 197 properties, covering 51.5 million square feet of space. This included nine under-construction/redevelopment properties.
Liquidity
Boston Properties exited second-quarter 2021 with $557.3 million of cash and cash equivalents, down from $1.67 billion at the end of 2020.The company has amended and restated its credit agreement and as a result, its credit facility now offers borrowings of up to $1.5 billion through an unsecured revolving credit facility and will expire in June 2026.
Outlook
The company projects third-quarter 2021 FFO per share of $1.68-$1.70. The guided range lies above the Zacks Consensus Estimate of $1.65.
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.
We now look forward to the earnings releases of other REITs like Cousins Properties Incorporated (CUZ - Free Report) , Kimco Realty Corporation (KIM - Free Report) and Digital Realty Trust, Inc. (DLR - Free Report) . All three REITs are slated to report second-quarter numbers on Jul 29.
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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Boston Properties Inc.’s (BXP - Free Report) second- quarter 2021 funds from operations (FFO) per share of $1.72 beat the Zacks Consensus Estimate of $1.61. The quarterly figure also exceeded the mid-point of the company’s second-quarter guidance by 12 cents, reflecting an improved portfolio performance, and better-than-projected parking, hotel, retail and termination income.
Quarterly revenues from lease came in at $684 million, exceeding the consensus mark of $674.3 million.
The quarterly FFO per share increased 13.2% from the year-ago quarter’s $1.52. The revenues from lease climbed 8.6% year on year.
Concurrent with the earnings release, Boston Properties announced management’s plan for the expansion of its footprint with acquisitions. In an attempt to establish a new market in Seattle, it has agreed to acquire Safeco Plaza, an 800,000-square-foot Class A office building for a gross purchase price of $465 million. The deal is expected to close in September 2021, and BXP expects to acquire this property in a joint venture (JV) and own up to a 51% interest in the JV.
The company has also agreed to acquire 360 Park Avenue South , an office property in the Midtown South submarket of Manhattan, NY, for roughly $300 million, as well as Shady Grove Bio+Tech Campus in Rockville, MD for $116.5 million.
Inside the Headline Numbers
During the second quarter, the company signed roughly 1.2 million square feet of leases with a weighted-average lease term of 7.5 years. This marks leasing volume of more than double the total square feet of leases executed during first-quarter 2021.
As of Jun 30, 2021, Boston Properties’ portfolio comprised 197 properties, covering 51.5 million square feet of space. This included nine under-construction/redevelopment properties.
Liquidity
Boston Properties exited second-quarter 2021 with $557.3 million of cash and cash equivalents, down from $1.67 billion at the end of 2020.The company has amended and restated its credit agreement and as a result, its credit facility now offers borrowings of up to $1.5 billion through an unsecured revolving credit facility and will expire in June 2026.
Outlook
The company projects third-quarter 2021 FFO per share of $1.68-$1.70. The guided range lies above the Zacks Consensus Estimate of $1.65.
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.
We now look forward to the earnings releases of other REITs like Cousins Properties Incorporated (CUZ - Free Report) , Kimco Realty Corporation (KIM - Free Report) and Digital Realty Trust, Inc. (DLR - Free Report) . All three REITs are slated to report second-quarter numbers on Jul 29.
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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on BXP - FREE
Get the latest research report on KIM - FREE
Get the latest research report on CUZ - FREE
Get the latest research report on DLR - FREE