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 & Revenues Top, '23 View Up
Read MoreHide Full Article
Boston Properties Inc.’s (BXP - Free Report) first-quarter 2023 funds from operations (FFO) per share of $1.73 outpaced the Zacks Consensus Estimate of $1.70. It also surpassed our estimate of $1.68. However, the reported figure fell 4.9% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, the company noted that higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP raised its outlook for 2023 FFO per share.
Quarterly revenues from lease came in at $756.9 million, which surpassed the consensus mark of $750.8 million. Moreover, the figure rose 5.4% from $718.1 million reported in the year-ago quarter. We projected the same to be $736.8 million.
Quarter in Detail
Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $710.1 million, rising nearly 2% year over year. The same for the hotel & residential segment aggregated $19.8 million, indicating a jump of 35.9% year over year.
BXP’s share of same property net operating income (NOI) on a cash basis (excluding termination income) totaled $425.2 million, up 4.8% from the prior-year quarter’s $405.8 million.
Its share of EBITDAre (on a cash basis) as of Mar 31, 2023, was $453.1 million, up 2.9% from $440.3 million as of Dec 31, 2022.
BXP’s in-service properties occupancy remained unchanged at 88.6% sequentially. We estimated the same to be 88.8%.
Portfolio Activity
As of Mar 31, 2023, Boston Properties’ portfolio comprised 192 properties, encompassing 54.5 million square feet of space. This included 15 properties under construction/redevelopment.
During the first quarter, the company executed 660,000 square feet of leases with a weighted average lease term of 7.7 years.
BXP closed the acquisition of a 50% interest in the joint venture (JV) that owns 13100 and 13150 Worldgate Drive, located in Herndon, VA, for roughly $17 million. The buyout was carried out using available cash. The JV aims to redevelop the property for residential use.
BXP commenced the development of 290 Binney Street, a 566,000 square feet laboratory/life sciences property, in an effort to expand its life sciences portfolio in Cambridge, MA. The property is 100% pre-leased to AstraZeneca for a lease term of 15 years.
The company also started the redevelopment of 300 Binney Street, which is 100% pre-leased to the Broad Institute for a lease term of 15 years. The premier workplace encompassing 195,000 net rentable square feet is being redeveloped into a roughly 236,000 net rentable square feet laboratory/life sciences space.
Liquidity
Boston Properties exited first-quarter 2022 with $918.9 million, up from $690.3 million as of Dec 31, 2022.
BXP’s share of net debt to EBITDAre annualized was 7.78 as of Mar 31, 2023, up from 7.56 times as of Dec 31, 2022.
2023 Outlook Raised
Boston Properties projects FFO per share for second-quarter 2023 to be in the range of $1.79-$1.81. The Zacks Consensus Estimate for the same is currently pegged at $1.80, which lies within the guided range.
For 2023, FFO per share is expected to be in the band of $7.14-$7.20, up from $7.08-$7.18 projected earlier. The Zacks Consensus Estimate for the same is currently pegged at $7.17, which lies in the guided range.
BXP maintained its outlook for its share of the same property NOI on a cash basis (excluding termination income) between 1% and 2.5% and average in-service portfolio occupancy in the band of 88-89.5% for the current year.
SL Green Realty Corp. (SLG - Free Report) reported first-quarter 2023 FFO per share of $1.53, surpassing the Zacks Consensus Estimate of $1.42. It also beat our estimate of $1.39. The reported figure, however, fell 7.3% from the year-ago quarter’s $1.65.
SLG’s results reflected better-than-anticipated revenues. However, a fall in occupancy in Manhattan’s same-store office portfolio was a deterrent for the company in the first quarter.
Crown Castle Inc. (CCI - Free Report) reported first-quarter 2023 adjusted FFO (AFFO) per share of $1.91, lagging the Zacks Consensus Estimate of $1.94. The figure, however, compared favorably with the year-ago period’s $1.87. Our estimate for the same was pegged at $1.98.
Higher operating expenses in the quarter were a deterrent. Nonetheless, the rise in site-rental revenues amid elevated tower space demand aided CCI’s year-over-year top-line growth. The company maintained its outlook for 2023.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported first-quarter 2023 AFFO per share of $2.19, surpassing the Zacks Consensus Estimate of $2.15. The reported figure climbed 6.8% from the year-ago quarter’s tally. We estimated AFFO per share for the quarter to be $2.14.
ARE’s results reflected better-than-anticipated revenues on healthy leasing activity and solid rental rate growth.
Note: Anything related to earnings presented in this write-up represent FFO — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Boston Properties (BXP) Q1 FFO & Revenues Top, '23 View Up
Boston Properties Inc.’s (BXP - Free Report) first-quarter 2023 funds from operations (FFO) per share of $1.73 outpaced the Zacks Consensus Estimate of $1.70. It also surpassed our estimate of $1.68. However, the reported figure fell 4.9% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, the company noted that higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP raised its outlook for 2023 FFO per share.
Quarterly revenues from lease came in at $756.9 million, which surpassed the consensus mark of $750.8 million. Moreover, the figure rose 5.4% from $718.1 million reported in the year-ago quarter. We projected the same to be $736.8 million.
Quarter in Detail
Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $710.1 million, rising nearly 2% year over year. The same for the hotel & residential segment aggregated $19.8 million, indicating a jump of 35.9% year over year.
BXP’s share of same property net operating income (NOI) on a cash basis (excluding termination income) totaled $425.2 million, up 4.8% from the prior-year quarter’s $405.8 million.
Its share of EBITDAre (on a cash basis) as of Mar 31, 2023, was $453.1 million, up 2.9% from $440.3 million as of Dec 31, 2022.
BXP’s in-service properties occupancy remained unchanged at 88.6% sequentially. We estimated the same to be 88.8%.
Portfolio Activity
As of Mar 31, 2023, Boston Properties’ portfolio comprised 192 properties, encompassing 54.5 million square feet of space. This included 15 properties under construction/redevelopment.
During the first quarter, the company executed 660,000 square feet of leases with a weighted average lease term of 7.7 years.
BXP closed the acquisition of a 50% interest in the joint venture (JV) that owns 13100 and 13150 Worldgate Drive, located in Herndon, VA, for roughly $17 million. The buyout was carried out using available cash. The JV aims to redevelop the property for residential use.
BXP commenced the development of 290 Binney Street, a 566,000 square feet laboratory/life sciences property, in an effort to expand its life sciences portfolio in Cambridge, MA. The property is 100% pre-leased to AstraZeneca for a lease term of 15 years.
The company also started the redevelopment of 300 Binney Street, which is 100% pre-leased to the Broad Institute for a lease term of 15 years. The premier workplace encompassing 195,000 net rentable square feet is being redeveloped into a roughly 236,000 net rentable square feet laboratory/life sciences space.
Liquidity
Boston Properties exited first-quarter 2022 with $918.9 million, up from $690.3 million as of Dec 31, 2022.
BXP’s share of net debt to EBITDAre annualized was 7.78 as of Mar 31, 2023, up from 7.56 times as of Dec 31, 2022.
2023 Outlook Raised
Boston Properties projects FFO per share for second-quarter 2023 to be in the range of $1.79-$1.81. The Zacks Consensus Estimate for the same is currently pegged at $1.80, which lies within the guided range.
For 2023, FFO per share is expected to be in the band of $7.14-$7.20, up from $7.08-$7.18 projected earlier. The Zacks Consensus Estimate for the same is currently pegged at $7.17, which lies in the guided range.
BXP maintained its outlook for its share of the same property NOI on a cash basis (excluding termination income) between 1% and 2.5% and average in-service portfolio occupancy in the band of 88-89.5% for the current year.
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
Performance of Other REITs
SL Green Realty Corp. (SLG - Free Report) reported first-quarter 2023 FFO per share of $1.53, surpassing the Zacks Consensus Estimate of $1.42. It also beat our estimate of $1.39. The reported figure, however, fell 7.3% from the year-ago quarter’s $1.65.
SLG’s results reflected better-than-anticipated revenues. However, a fall in occupancy in Manhattan’s same-store office portfolio was a deterrent for the company in the first quarter.
Crown Castle Inc. (CCI - Free Report) reported first-quarter 2023 adjusted FFO (AFFO) per share of $1.91, lagging the Zacks Consensus Estimate of $1.94. The figure, however, compared favorably with the year-ago period’s $1.87. Our estimate for the same was pegged at $1.98.
Higher operating expenses in the quarter were a deterrent. Nonetheless, the rise in site-rental revenues amid elevated tower space demand aided CCI’s year-over-year top-line growth. The company maintained its outlook for 2023.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported first-quarter 2023 AFFO per share of $2.19, surpassing the Zacks Consensus Estimate of $2.15. The reported figure climbed 6.8% from the year-ago quarter’s tally. We estimated AFFO per share for the quarter to be $2.14.
ARE’s results reflected better-than-anticipated revenues on healthy leasing activity and solid rental rate growth.
Note: Anything related to earnings presented in this write-up represent FFO — a widely used metric to gauge the performance of REITs.