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Boston Properties' (BXP) Q2 FFO & Revenues Miss Estimates

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Boston Properties Inc.’s (BXP - Free Report) second-quarter 2020 funds from operations (FFO) per share of $1.52 missed the Zacks Consensus Estimate of $1.74. The reported figure also decreased 14.6% from the year-ago quarter’s $1.78.

Quarterly revenues from lease came in at $630.1 million, missing the Zacks Consensus Estimate of $701.3 million. Moreover, the reported figure came in 7.4% lower than the prior-year’s $680.2 million.

The company also revealed its rental receipts for July, announcing a collection of 95% of its total commercial rents due from retail and office tenants. This figure increases to 98% if the retail tenants are excluded.

Inside the Headline Numbers

During the second quarter, the company completed the sale of 455,000 square feet of Capital Gallery in Washington, DC. Boston Properties will retain the ownership of the remaining 176,000 square feet of space. The remaining area is fully leased. The company realized net proceeds of $247 million from the sale.

The company also completed the sale of Annapolis Junction Building Eight in Annapolis Junction, MD. Boston Properties realized net proceeds of $15 million from the sale after closing costs and the repayment of mortgage debt on the property.

The company completed the acquisition of a property in San Francisco, CA for $140.1 million.

As of Jun 30, 2020, Boston Properties’ portfolio comprised 195 properties, covering a total of 51.2 million square feet of space. This included nine under-construction properties. Portfolio occupancy of 92% in the company’s in-service office properties marks a contraction of 90 basis points from first-quarter 2020.

Liquidity

Boston Properties exited second-quarter 2020 with $1.7 billion of cash balance and $300.6 million of cash held in escrow.

Boston Properties, Inc. Price, Consensus and EPS Surprise

Boston Properties, Inc. Price, Consensus and EPS Surprise

Boston Properties, Inc. price-consensus-eps-surprise-chart | Boston Properties, Inc. Quote

Boston Properties currently carries a Zacks Rank #4 (Sell).

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 CBRE Group (CBRE - Free Report) , Mack-Cali Realty Corporation (CLI - Free Report) and Vornado Realty Trust (VNO - Free Report) . While CBRE Group is slated to report quarterly numbers on Jul 31, Mack-Cali Realty Corporation and Vornado Realty Trust will release results on Aug 3.

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.

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