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Boston Properties (BXP) Tops Q4 FFO & Revenue Estimates

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Boston Properties Inc. (BXP - Free Report) reported fourth-quarter 2016 funds from operations (“FFO”) per share of $1.54, beating the Zacks Consensus Estimate of $1.50. Also, the bottom line came in higher than the year-ago figure of $1.28.

FFO per share for full-year 2016 came in at $6.03, beating the Zacks Consensus Estimate of $5.98. The company recorded FFO per share of $5.36 in 2015.

Total revenue during the quarter rose 1.9% year over year to $636.1 million. Also, the top line comfortably surpassed the Zacks Consensus Estimate of $605.2 million.

For the full year, the company recorded revenues of $2.56 billion, up 2.5% from the 2015 figure.

Property Update

As of Dec 31, 2016, Boston Properties’ portfolio comprised 174 properties, covering a total of around 47.7 million square feet of space. This included eight under-development properties, totaling around 4.0 million square feet.

The overall operating portfolio, comprising 163 properties (excluding two residential properties and one hotel), was 90.2% leased as of Dec 31, 2016. Also, the company along with its partner, which owns Metropolitan Square located in WA, closed the sale of 80% interest in a joint venture for around $282.4.

Liquidity

Boston Properties exited the fourth quarter with cash and cash equivalents of nearly $356.9 million, down from $723.7 million as of 2015 end.
Outlook

The company updated its full-year 2017 guidance to $6.13–$6.23 per share from the previous projection of $6.05–$6.23. The Zacks Consensus Estimate for 2017 FFO is pegged at $6.17.

It expects its first-quarter 2017 FFO per share in the range of $1.47–$1.49.

Our Viewpoint

Boston Properties is poised to grow with properties in select high-rent, high barrier-to-entry geographic markets, diversified tenant and industry base, including several bellwethers. Yet, stiff competition and additional supply in some of its markets pose concerns for the company.

Boston Properties, Inc. Price, Consensus and EPS Surprise
 

Boston Properties, Inc. Price, Consensus and EPS Surprise | Boston Properties, Inc. Quote

Boston Properties currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We now look forward to the earnings releases of The Macerich Company (MAC - Free Report) , Highwoods Properties, Inc. (HIW - Free Report) and Liberty Property Trust which are expected next week.

Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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