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Boston Properties (BXP) Inks Lease Extension in Santa Monica
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Boston Properties, Inc. (BXP - Free Report) has been receiving a positive response from its existing tenants, as indicated by its recent leasing efforts. This office REIT has inked a 467,000 square-foot long-term lease extension with Snap Inc. at Santa Monica Business Park in Santa Monica, CA. The multi-building lease extension will be valid for a term of ten years. This move will boost the occupancy level at the company’s property and fuel growth in rental income.
Located in the heart of the lively Sunset and Ocean Park neighborhoods, the 1.2 million square-foot Santa Monica Business Park is a creative office campus. It is one of the most desirable workplaces in Santa Monica, with reputed technology and entertainment companies in its tenant roster.
Alex Cameron, vice president, leasing, Los Angeles regional director of Boston Properties, commented, “We are thrilled that Snap will continue to innovate and grow their business at Santa Monica Business Park. Their commitment to Santa Monica, engagement with the surrounding community, and dedication to their employees’ experience are clear with this selection.”
Despite the overall challenging market, this office REIT has been benefiting from the rising demand for top-quality office spaces driven by technology and life science businesses. It is witnessing health leasing activities and for the nine months ended Sep 30, 2023, the company executed around 2.7 million square feet of leases with a weighted average lease term of 7.2 years. Further, as of Sep 30, 2023, the weighted average remaining lease term for its 20 largest clients, based on leased square footage, was 10.1 years.
Boston Properties’ tenant roster also includes several industry bellwethers and its long-term leases with such tenants with a solid credit profile ensure stable cash flows. Further, Boston Properties’ encouraging development and redevelopment pipeline is likely to fuel net operating income growth in the upcoming years. As of the end of the third quarter of 2023, BXP had 11 office, lab, retail and residential projects underway, with its share of the estimated total investment aggregating around $2.4 billion, which seems encouraging.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 35.1% compared with the industry's growth of 23%.
The Zacks Consensus Estimate for Stag’s 2023 funds from operations (FFO) per share is pegged at $2.28, suggesting year-over-year growth of 3.2%.
The Zacks Consensus Estimate for VICI Properties’ 2023 FFO per share stands at $2.15, indicating an increase of 11.4% from the year-ago reported figure.
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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Boston Properties (BXP) Inks Lease Extension in Santa Monica
Boston Properties, Inc. (BXP - Free Report) has been receiving a positive response from its existing tenants, as indicated by its recent leasing efforts. This office REIT has inked a 467,000 square-foot long-term lease extension with Snap Inc. at Santa Monica Business Park in Santa Monica, CA. The multi-building lease extension will be valid for a term of ten years. This move will boost the occupancy level at the company’s property and fuel growth in rental income.
Located in the heart of the lively Sunset and Ocean Park neighborhoods, the 1.2 million square-foot Santa Monica Business Park is a creative office campus. It is one of the most desirable workplaces in Santa Monica, with reputed technology and entertainment companies in its tenant roster.
Alex Cameron, vice president, leasing, Los Angeles regional director of Boston Properties, commented, “We are thrilled that Snap will continue to innovate and grow their business at Santa Monica Business Park. Their commitment to Santa Monica, engagement with the surrounding community, and dedication to their employees’ experience are clear with this selection.”
Despite the overall challenging market, this office REIT has been benefiting from the rising demand for top-quality office spaces driven by technology and life science businesses. It is witnessing health leasing activities and for the nine months ended Sep 30, 2023, the company executed around 2.7 million square feet of leases with a weighted average lease term of 7.2 years. Further, as of Sep 30, 2023, the weighted average remaining lease term for its 20 largest clients, based on leased square footage, was 10.1 years.
Boston Properties’ tenant roster also includes several industry bellwethers and its long-term leases with such tenants with a solid credit profile ensure stable cash flows. Further, Boston Properties’ encouraging development and redevelopment pipeline is likely to fuel net operating income growth in the upcoming years. As of the end of the third quarter of 2023, BXP had 11 office, lab, retail and residential projects underway, with its share of the estimated total investment aggregating around $2.4 billion, which seems encouraging.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 35.1% compared with the industry's growth of 23%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Stag Industrial (STAG - Free Report) and VICI Properties (VICI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Stag’s 2023 funds from operations (FFO) per share is pegged at $2.28, suggesting year-over-year growth of 3.2%.
The Zacks Consensus Estimate for VICI Properties’ 2023 FFO per share stands at $2.15, indicating an increase of 11.4% from the year-ago reported figure.
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.