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Why Is Boston Properties (BXP) Down 4.6% Since Last Earnings Report?

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A month has gone by since the last earnings report for Boston Properties (BXP - Free Report) . Shares have lost about 4.6% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Boston Properties due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Boston Properties Beats Q1 FFO Estimates, Raises View

Boston Properties’ first-quarter 2019 FFO per share of $1.72 surpassed the Zacks Consensus Estimate of $1.66. The figure also comes in 15% higher than the prior-year tally.

Results were supported by higher occupancy and strong leasing activity. Further, higher lease revenues from development project completions and improvements in the company’s in-service portfolio drove bottom-line growth.

Revenues from lease came in at $679.3 million, surpassing the Zacks Consensus Estimate of $661.5 million.

Property Update

As of Mar 31, 2019, Boston Properties’ portfolio comprised 196 properties, covering a total of around 51.4 million square feet of space. This included 11 under construction/redevelopment properties.

Total portfolio occupancy for the company’s in-service office properties was 92.9% as of Mar 31, 2019, indicating a sequential expansion of 150 basis points (bps).

During the March-end quarter, Boston Properties accomplished the sale of 2600 Tower Oaks Boulevard — a 179,000-square-foot property — in Rockville, MD, for $22.7 million.

In addition to this, Boston Properties secured a long-term lease with Google, LLC. for 362,000 square feet of office space at its Kendall Square redevelopment.

Liquidity

Boston Properties exited the first quarter with cash and cash equivalents of $360 million, down from $543.3 million as of Dec 31, 2018.

Outlook

The company provided second-quarter 2019 FFO per share guidance of $1.73-$1.75. For full-year 2019, Boston Properties revised its FFO per share guidance to $6.95-$7.02, up from the previous guidance of $6.88-$7.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

Currently, Boston Properties has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Boston Properties has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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