By Kristin Jones
Boston Properties Inc.'s (BXP) fourth-quarter profit fell 36% as
the office landlord's expenses rose, masking higher rental
revenue.
The real-estate investment trust, which also manages and
develops hotel and industrial properties, has recorded sustained
revenue growth in recent quarters, though earnings have been
impacted by charges and expenses. Its properties are concentrated
in the Boston, midtown Manhattan and Washington markets, where
rents remained high through the recession, and as the housing
market recovers.
Boston Properties posted a profit of $65.4 million, or 43 cents
a share, down from $101.6 million, or 69 cents a share, a year
earlier. Funds from operations--a key measure of performance for
the real-estate sector--rose to $1.27 a share from $1.21 a share,
topping its October view of FFO between $1.22 and $1.24 a
share.
Total revenue rose 7.7% to $485.4 million, beating the $462.7
million consensus estimate of analysts polled by Thomson
Reuters.
Leasing rates edged up to 91.4% as of Dec. 31, from 91.3% at the
end of 2011.
Base rent rose 7.3%.
Total expenses jumped 8.8%, due to depreciation and
amortization, and as operating expenses associated with rentals
rose.
For the current quarter, the company projected FFO of $1.19 to
$1.21 a share. Analysts recently projected $1.23 a share.
For the full year, it predicted FFO of $5.06 to $5.18 a share,
mostly below the consensus estimate of $5.17.
Shares closed Tuesday at $108.85 and were unchanged after hours.
Through the close, the stock was down 1.8% in the past six
months.
Write to Kristin Jones at kristin.jones@dowjones.com
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