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Earnings Preview: Boston Properties - Analyst Blog
4/30/2012 3:30:00 PM
), a real estate investment trust (REIT), is scheduled to report
its fiscal 2012 first quarter earnings after the closing bell on
May 1, 2012. The current Zacks Consensus Estimate for the first
quarter is $1.14 per share, representing a year-over-year growth of
The reported FFO for the quarter surpassed the Zacks Consensus Estimate by 2 cents. The decrease in fourth quarter 2010 FFO was primarily due to loss from early extinguishment of debt totaling approximately $81.7 million or $0.50 per share.
For full year 2011, FFO was $711.0 million or $4.84 per share, compared with $547.4 million or $3.90 per share in the previous year. The reported FFO for fiscal 2011 exceeded the Zacks Consensus Estimate by 2 cents.
Total revenues of the company during the reported quarter were
$452.8 million, compared with $392.5 million in the year-ago
quarter. The quarterly revenues were well above the Zacks Consensus
Estimate of $430 million. For full year 2011, total revenues were
$1.76 billion, compared with $1.55 billion in 2010. The fiscal 2011
revenues were well above the Zacks Consensus Estimate of $1.69
billion. The overall portfolio was 91.3% leased at quarter-end.
Magnitude of Estimate Revisions
The company also has one of the best balance sheets in the sector with manageable near-term debt maturities and adequate liquidity to take advantage of distressed selling as asset values of office and retail properties continue to drop.
However, Boston Properties has a large development pipeline which increases operational risks in the current credit-constrained market, exposing it to rising construction costs, entitlement delays, and lease-up risk.
We currently have a 'Neutral' recommendation on Boston Properties with a Zacks #2 Rank, which translates into a short-term 'Buy' rating. We also have a 'Neutral' recommendation and a Zacks #3 Rank (short-term 'Hold' rating) for Vornado Realty Trust ( VNO ), one of the competitors of Boston Properties.
BOSTON PPTYS ( BXP ): Free Stock Analysis Report
VORNADO RLTY TR ( VNO ): Free Stock Analysis Report
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