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Boston Properties Q1 FFO Misses Estimates, Revenues Grow Y/Y

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Boston Properties Inc.’s (BXP - Free Report) first-quarter 2025 funds from operations (FFO) per share of $1.64 missed the Zacks Consensus Estimate of $1.65. The reported figure fell 5.2% year over year.

BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, lower occupancy during the quarter marred its year-over-year FFO per share growth. BXP also revised its guidance for 2025 FFO per share.

Quarterly lease revenues were $811.1 million, up 2.9% year over year. The Zacks Consensus Estimate was pegged at $790.9 million. Total revenues increased 3.1% from the prior-year quarter to $865.2 million.

BXP’s First Quarter in Detail

Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $799.2 million, which rose 1.5% year over year. For the hotel & residential segment, the metric aggregated $21.9 million, indicating a jump of 5.2% year over year. On a consolidated basis, BXP’s rental revenues (excluding termination income) came in at $821.1 million, up 1.6% year over year.

BXP’s share of the same property net operating income (NOI) on a cash basis (excluding termination income) totaled $460.9 million, which increased 1.8% from the prior-year quarter.

Its share of EBITDAre (on a cash basis), as of March 31, 2025, was $455.6 million, up marginally from $452.5 million as of March 31, 2024.

BXP’s in-service properties occupancy decreased 60 basis points sequentially to 86.9% due to the lease expiration of 350,000 square feet at 200 Fifth Avenue in New York. We estimated the metric to be 87%.

BXP’s Portfolio Activity

During the first quarter, the company executed 91 leases spanning more than 1.1 million square feet, an increment of 25% year over year, with a weighted average lease term of 10.9 years.

In the first quarter of 2025, BXP completed the formation of a joint venture with CrossHarbor Capital and Albanese Organization and its partner to develop a 670-unit, around $455.8 million residential project — ‘290 Coles Street’.

Balance Sheet Position of BXP

Boston Properties exited the first quarter of 2025 with cash and cash equivalents of $398.1 million, down from $1.25 billion as of Dec. 31, 2024.

BXP’s share of net debt to EBITDAre, annualized, was 8.33 as of March 31, 2025, up from 7.65 times as of Dec. 31, 2024.

2025 Guidance Revision by BXP

Boston Properties projects FFO per share for the second quarter of 2025 to be between $1.65 and $1.67.

For 2025, BXP has lowered its guidance for FFO per share, which is now expected in the band of $6.80-$6.92 from the earlier guided range of $6.77-$6.95. The Zacks Consensus Estimate is currently pegged at $6.90, which lies within the guided range.

BXP estimates the change in its share of the same-property NOI on a cash basis (excluding termination income) to be between 0.50% and 1.50% for 2025.

BXP’s Zacks Rank

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.

BXP, Inc. Price, Consensus and EPS Surprise

BXP, Inc. Price, Consensus and EPS Surprise

BXP, Inc. price-consensus-eps-surprise-chart | BXP, Inc. Quote

Upcoming Earnings Releases

We now look forward to the earnings releases of other REITs like Cousins Properties (CUZ - Free Report) and Vornado Realty Trust (VNO - Free Report) , slated to report on May 1 and May 5, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Zacks Consensus Estimate for Cousins Properties’ first-quarter 2025 FFO per share stands at 71 cents, which indicates 9.2% growth year over year. CUZ currently has a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Vornado Realty Trust’s first-quarter 2025 FFO per share is pegged at 51 cents, which implies a 7.3% year-over-year decrease. VNO currently carries a Zacks Rank #2.

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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