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Boston Properties (BXP) Q1 FFO and Revenues Beat Estimates

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Boston Properties Inc.’s (BXP - Free Report) first-quarter 2021 funds from operations (FFO) per share of $1.56 beat the Zacks Consensus Estimate of $1.55. The quarterly figure also exceeded the mid-point of the company’s first-quarter guidance by a cent, highlighting better-than-projected portfolio performance and higher fee income.

Quarterly revenues from lease were $685.8 million, exceeding the consensus mark of $658.6 million.

However, on a year-over-year basis, FFO per share decreased 14.8% from the year-ago quarter’s $1.83. Moreover, revenues from lease declined 3.4% year on year.

The REIT noted that it sees a recent uptick in leasing activity and signed long-term leases with media, technology and consulting companies. Particularly, Boston Properties announced a 72,000-square-foot, 10-year lease with Roku, a new tenant at Colorado Center in Los Angeles, CA. It also started new life-sciences development projects in Waltham, MA and South San Francisco, CA in order to address the rising tenant demand.

Inside the Headline Numbers

During the first quarter, the company signed roughly 592,000 square feet of leases with a weighted-average lease term of 7.6 years. Notably, this marks leasing volume of 84% of the total square feet of leases executed in the prior-year quarter.

Additionally, it completed and fully placed in-service One Five Nine East 53rd Street in New York City, which includes 195,000 square feet of office space that is fully leased to NYU for a 30-year term.

As of Mar 31, 2021, Boston Properties’ portfolio comprised 196 properties, covering 51.6 million square feet of space. This included nine under-construction/redevelopment properties.

Liquidity

Boston Properties exited first-quarter 2021 with $697.4 million of cash and cash equivalents, down from $1.67 billion at the end of 2020.

Outlook

The company projects second-quarter 2021 FFO per share of $1.59-$1.61. The guided range lies below 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.

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

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 first-quarter earnings on Apr 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.

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