Boston Properties (BXP) Q3 FFO Misses, Revenues Top Estimates

Boston Properties Inc.’s BXP third-quarter 2020 funds from operations (FFO) per share of $1.57 missed the Zacks Consensus Estimate of $1.64. The reported figure also decreased 4.3% from the year-ago quarter’s $1.64.

Quarterly revenues from lease came in at $666.7 million, surpassing the Zacks Consensus Estimate of $661.5 million. However, the reported figure is 3.7% lower than the prior-year’s $692.2 million.

The company also revealed its rental receipts for the third quarter, announcing a collection of 99% of the total rents from office tenants. The company collected 97% of the total rent from all commercial tenants, including base rent from retail tenants.

Inside the Headline Numbers

During the third quarter, the company completed leases and renewals spanning an area of 811,000 square feet, with a weighted average lease term of about seven years.

The company also completed the acquisition of a 50% stake in Beach Cities Media Center for $21.2 million. The land site spans an area of 6.4 acres in the Rosecrans Corridor of the El Segundo submarket of Los Angeles, CA.

As of Sep 30, 2020, Boston Properties’ portfolio comprised 196 properties, covering a total of 51.2 million square feet of space. This included seven under-construction properties. Portfolio occupancy of 91.1% in the company’s in-service office properties marks a contraction of 90 basis points from second-quarter 2020.


Boston Properties exited third-quarter 2020 with $1.7 billion of cash balance and $50 million of cash held in escrow.

Boston Properties, Inc. Price, Consensus and EPS Surprise

Boston Properties, Inc. Price, Consensus and EPS Surprise

Boston Properties, Inc. price-consensus-eps-surprise-chart | 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.

Performance of Other REITS

Prologis, Inc. PLD reported third-quarter 2020 core FFO per share of 90 cents, beating the Zacks Consensus Estimate of 88 cents. However, results compared unfavorably with the year-ago figure of 97 cents. Excluding net promote income, core FFO per share came in at 92 cents in the quarter, up from the prior-year period’s 79 cents.

Alexandria Real Estate Equities, Inc. ARE delivered third-quarter FFO as adjusted of $1.83 per share, up 4.6% from the year-ago quarter’s $1.75.  The reported figure came in line with the Zacks Consensus Estimate.

Mack-Cali Realty Corporation CLI is slated to report earnings results on Nov 4.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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