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Boston Properties (BXP) Beats on Q2 FFO, To Acquire 3 Properties
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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.
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.
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Boston Properties (BXP) Beats on Q2 FFO, To Acquire 3 Properties
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.
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 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.