By Kristin Jones
Boston Properties Inc.'s (BXP) second-quarter profit nearly
doubled as the office landlord benefited from the sale of
properties in Massachusetts and other one-time items, and from
increasing rental revenue.
The real-estate-investment trust, which also manages and
develops hotel and industrial properties, has posted income growth
in recent quarters. Its properties are concentrated in Boston,
midtown Manhattan and Washington D.C., markets that were relatively
cushioned from the recession, and where rents are high.
During the latest quarter, the company completed its sale of
Bedford Business Park in Massachusetts for a gain on sale of
roughly $36.9 million. The second quarter also included termination
income from a tenant at the General Motors Building in New York,
and other one-time items.
Boston Properties posted a profit of $119.1 million, or 79 cents
a share, up from $60.2 million, or 41 cents a share, a year
earlier. Funds from operations--a key measure of performance for
the real-estate sector--rose to $1.37 a share from $1.23 a share,
beating the company's May view for FFO of $1.23 to $1.25 a
share.
Total revenue rose 9% to $472.9 million, topping estimates of
analysts surveyed by Thomson Reuters, who recently expected revenue
of $432 million.
Rental revenue increased 9% to $453.3 million.
Leasing rates edged up to 91.6% as of June 30, from 91.3% at the
end of 2011.
Base rent climbed 7.4%.
The company forecast FFO between $1.13 to $1.15 a share for the
current quarter, below the average estimate of analysts polled by
Thomson Reuters, who recently predicted $1.23.
Boston Properties also narrowed its full-year view, now seeing
FFO of $4.85 to $4.91, compared with its May outlook for $4.83 to
$4.93 a share.
Shares closed at $113.17 Monday and were unchanged after hours.
The stock is up 14% so far this year.
Write to Kristin Jones at kristin.jones@dowjones.com
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