DOW JONES NEWSWIRES
Boston Properties Inc.'s (BXP) first-quarter profit jumped 58%
though a key profitability metric remained flat despite higher
rental revenue.
The real estate investment trust, which also manages and
develops hotel and industrial properties, projected current-quarter
funds from operations between $1.23 and $1.25 a share, above
analysts' average estimate of $1.22 a share, according to Thomson
Reuters.
Boston Properties has posted stronger earnings in recent
quarters as its existing assets generate more revenue. The
company's properties -- found in places like midtown Manhattan,
Boston and Washington, D.C. -- didn't suffer as much housing
downturn as other those in other areas and have been among the
quickest to recover.
The REIT in February revealed its chief operating officer would
resign at the end of the month, allowing the office landlord's
president to fill his post. The change lead to a charge in the
first quarter, though other one-time items helped offset the
negative accounting impact of the departure.
Boston Properties posted a profit of $64.6 million, or 43 cents
a share, up from $40.8 million, or 29 cents a share, a year
earlier. FFO -- a key profitability metric among REITs -- were flat
at $1.12 a share. In January, the company projected FFO between
$1.12 and $1.14 a share.
Total revenue rose 7.3% to $447.7 million, while rental revenue
increased 7.2% to $432.7 million. Analysts surveyed by Thomson
Reuters most recently expected $419 million of revenue from
rent.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com