By John Kell
Boston Properties Inc.'s (BXP) third-quarter profit more than
doubled as the office landlord reported a jump in base rent
revenue, while a key metric known as funds from operations
jumped.
The real-estate investment trust, which also manages and
develops hotels 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.
Looking ahead, Boston Properties sees funds from operations--a
key profitability metric for REITs--of $1.23 to $1.25 a share.
Analysts surveyed by Thomson Reuters expected adjusted FFO of $1.30
a share.
For the year, Boston Properties now sees FFO of $5.20 to $5.35 a
share, up from the lowered July view of $4.89 to $4.94 a share.
Overall, Boston Properties reported a profit of $155.3 million,
up from $57.2 million a year ago. On a per-share basis, which
includes the impact of preferred dividends in the most recent
period, earnings grew to $1 from 38 cents.
FFO grew to $1.29 a share from $1.15 a share a year ago, on the
high end of the company's estimate in July.
Total revenue jumped 23% to $574.1 million, beating the $511
million estimated by analysts. The top line was bolstered by higher
base rents, as well as rising revenue in recoveries from
tenants.
Shares closed up 0.5% to $107.96 on Tuesday and were unchanged
in after-hours trading. The stock has risen 2% in 2013,
underperforming the broader market.
Write to John Kell at john.kell@wsj.com
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