DOW JONES NEWSWIRES Boston Properties Inc.'s (BXP) second-quarter earnings edged down 2% while a key measure of profitability for the office-property owner grew amid higher rents. The real-estate investment trust, which also manages and develops hotel and industrial properties, also raised its full-year view of funds from operations, an important profitability metric for REITs, to $4.78 to $4.83 a share, up from its May outlook of $4.45 to $4.55. The company also projected third-quarter FFO between $1.23 and $1.25. Analysts polled by Thomson Reuters were expecting $1.19 a share. Office landlords have seen their results improve as higher occupancy and rents boost their bottom lines. REITs with properties in major cities have been doing particularly well as urban commercial real-estate markets rebound the fastest. Boston Properties' assets are concentrated in Boston, midtown Manhattan and Washington. In the latest quarter, Boston Properties' leasing rates slipped to 91.9% as of June 30 from 93.2% at the end of last year. Base rent grew 14%. The REIT posted a profit of $60.2 million, or 41 cents a share, down from $61.4 million, or 44 cents a share, a year earlier. FFO edged up to $1.23 a share from $1.12 a share. The company in May projected per-share FFO between $1.18 to $1.20, an upbeat view at the time. Revenue climbed 11% to $436.5 million. Analysts expected $409 million. Boston Properties shares closed at $105.96 Monday and were inactive after-hours. The stock has risen 23% so far this year. -By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com
