By John Kell and Nathalie Tadena
Boston Properties Inc.'s (BXP) second-quarter profit soared from
a year earlier as a gain related to the consolidation of the office
landlord's joint ventures boosted results, though a key metric
known as funds from operations fell slightly.
For the current quarter, the company sees funds from
operations--a key profitability metric for real-estate investment
trusts--of $1.27 to $1.29 a share. Analysts surveyed by Thomson
Reuters expected FFO of $1.31.
Boston Properties lowered its full-year FFO outlook, now seeing
a range of $4.89 to $4.94 a share, from the trimmed April guidance
of $4.97 to $5.07 a share.
The REIT, which also manages and develops hotel and industrial
properties, has recorded a steady string of sales gains, though
earnings at times have been weighed by expenses and charges. Its
properties are concentrated in the Boston, midtown Manhattan and
Washington markets, where rents remained relatively high through
the recession.
Overall, Boston Properties reported a profit of $455 million, up
from $118.6 million a year earlier. On a per-share basis, which
includes the impact of preferred dividends in the most recent
period, earnings rose to $2.94 from 78 cents.
FFO slipped to $1.28 a share from $1.36 a share, better than the
April guidance of FFO between $1.25 to $1.27 a share.
The latest quarter included a $387.8 million gain on the
consolidation of joint ventures.
Total revenue rose 9.3% to $515.3 million, beating the $466
million estimated by analysts.
Leasing rates rose to 92.1% as of June 30, up from 91.7% the
prior quarter.
Base rent increased 8.9%.
Shares closed at $108.72 and were unchanged in after-hours
trading.
Write to John Kell at john.kell@wsj.com and Nathalie Tadena at
nathalie.tadena@dowjones.com
Order free Annual Report for Boston Properties, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US1011211018 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires