Market Commentary and Intraday News
Boston Properties' FFO rises 14 pct in 2Q
315 days ago
(AP:BOSTON) Commercial property owner Boston Properties Inc. said Monday that its second-quarter funds from operations grew 14 percent, buoyed by higher rental revenue.
Its full-year and third-quarter earnings outlook fell short of Wall Street expectations, however.
The real estate investment trust posted funds from operations, or FFO, of $206.8 million, or $1.37 per share, for the three months ended June 30. That compares with FFO of $181.6 million, or $1.23 per share, in the same period last year.
Analysts surveyed by FactSet were expecting FFO of $1.24 per share.
FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of strength for real estate investment trusts because it provides a more accurate picture of cash performance.
Boston Properties also saw its net income improve to $119.1 million, or 79 cents per share, during the quarter. That compares with net income of $60.2 million, or 41 cents per share. Analysts had anticipated earnings of 44 cents per share.
Revenue climbed to $472.9 million from $433.9 million a year earlier. Analysts were predicting revenue of $424 million.
The increase was driven by higher rental revenue, which rose 9 percent to $453.3 million.
As of June 30, Boston's portfolio consisted of 150 properties, comprised primarily of office space. The company also owns one hotel, three residential and three retail properties, and parking structures.
Boston Properties anticipates third-quarter FFO per share will range from $1.13 to $1.15, on earnings per share between 33 cents and 35 cents.
Analysts are expecting third-quarter FFO of $1.23 a share and net income of 42 per share, according to FactSet.
For 2012, Boston expects FFO per share will range from $4.85 to $4.91. Its forecast calls for net income per share between $1.98 and $2.04.
Analysts are expecting 2012 FFO per share of $4.84 and earnings per share of $1.63.
Boston Properties shares ended the regular session up 17 cents to $113.17. They were unchanged in extended trading following the earnings report.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.