On Jun 12, 2014, we issued an updated research report on real
estate investment trust (REIT),
Boston Properties, Inc.
On Apr 29, Boston Properties reported first-quarter 2014 FFO (funds
from operations) per share of $1.20, which missed the Zacks
Consensus Estimate by 3 cents and fell short of the company's
guidance range of $1.21-$1.23 per share. This was due to the rise
in utilities and snow removal expenditures incurred for its
Northeast assets as well as the timing difference in its G&A
However, FFO per share was ahead of the prior-year quarter figure
of $1.06 and total revenue during the quarter advanced 20.3% year
over year to $574.7 million and was well ahead of the Zacks
Consensus Estimate of $553 million. The quarterly hike was
primarily attributable to a significant surge in rental revenues.
The year-over-year increase was mainly driven by an uptick in base
rents and higher tenant recoveries revenues.
Improved core operating fundamentals, the ongoing successful
portfolio repositioning activities and a decent balance sheet place
Boston Properties on the growth trajectory. Despite short-term
headwinds, the company's key market, Boston, is still among the
most prominent office markets in the U.S. This market is growing
and offers sufficient scope to the company to enhance its top line.
However, conditions in the Washington, D.C. office market remain
choppy. Moreover, overall, though the office market is recovering
in the U.S., the rate of revival is tepid.
Echoing similar sentiments we note that over the last 30 days, the
Zacks Consensus Estimate for FFO per share remained constant at
$5.28 for 2014. However, for 2015, it moved down 0.7% to $5.71 per
share. The stock now has a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Investors interested in the residential REIT industry may consider
The GEO Group, Inc.
Terreno Realty Corp.
Chatham Lodging Trust
). All these stocks carries a Zacks Rank #1 (Strong Buy).
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GEO GRP INC/THE (GEO): Free Stock Analysis
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