BXP, Inc. (BXP) is slated to report second-quarter 2024 results on Jul 30, after market close. While its quarterly results are likely to reflect year-over-year growth in revenues, funds from operations (FFO) per share may decline. Per a Cushman & Wakefield (CWK) report, although the U.S. economy is now slowing, job growth remains healthy. CWK expects office-using job growth to be moderate for the remainder of the year before picking up in 2025. Nonetheless, the second-quarter national vacancy rate reached a ...

Real estate investment trusts (REITs) represent one of the best ways to get exposure to investing in real estate without having to take on the risks and capital expenditures of purchasing your own property. When buying into a REIT, investors are essentially giving their money as a loan to a capital management firm, which then invests that money into further property as the value of that property grows so two does the dividend yield of the REIT lowering it to provide comfortable returns on the original inves ...

BXP, Inc. (NYSE:BXP), which just changed its name last month from Boston Properties, covers its robust 6% dividend yield with funds from operations and has a well-leased office real estate portfolio. Supatman/iStock via Getty Images Though the trust has a high asset concentration and is not as diversified as one would wish, BXP easily earns its dividend with funds from operations. With a low payout ratio in the 50-percent range and a low valuation based on FFO, I think BXP offers passive income investors a ...

Furthremore, a great deal of money is going to be made by those buying the " middle 50% of office assets." Meanwhile, the outlook of industrial properties and data centers is positive. Banks will resume lending to commercial real estate companies again when the Federal Reserve starts cutting rates, he stated. Similarly, investment manager Invesco predicted that lower interest rates would spark a recovery in commercial real estate later this year. Here are three commercial real estate stocks to buy. "Leasing ...

One of the key advantages of investing in REIT stocks is the potential for high dividend yields. Which are often higher than those of other equities. REITs are legally required to distribute at least 90% of their taxable income to shareholders annually in the form of dividends. This makes them highly attractive for dividend income. They also offer the liquidity of stocks, allowing investors to buy and sell shares easily on major exchanges. To initiate, SL Green Realty Corp. (SLG) is a real estate investment ...

Pgiam Boston Properties First Quarter Financial Performance Boston Properties' balance sheet had a rather uneventful first quarter. Investors should note that the primary asset on the company's balance sheet is real estate assets, but accrued rental income, deferred charges, and investments in unconsolidated joint ventures are also notable components. Cash fell from $1.5 billion to $700 million in the first quarter. A good chunk of that cash decline likely came from the $700 million drop in unsecured notes, ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=6&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) Presents unaudited Q1 2024 consolidated financial statements for BXP and BPLP, detailing key financial positions [Boston Properties, Inc. (BXP) Consolidated Financial Statements](index=6&type=section&id=Boston%20Properties%2C%20Inc.%20Consolidated%20Financial%20Statements) BXP reported Q1 2024 revenues of $839.4 million and net income of $79.9 million, with total assets decreasing to $25.5 billion BXP Consolidated Statement of Operations (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | $839,439 | $803,200 | | **Net Income Attributable to BXP** | $79,883 | $77,890 | | **Diluted EPS** | $0.51 | $0.50 | BXP Consolidated Balance Sheet Highlights (as of March 31, 2024) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total Real Estate | $20,768,288 | $20,593,459 | | Cash and Cash Equivalents | $701,695 | $1,531,477 | | **Total Assets** | **$25,525,978** | **$26,026,149** | | Total Liabilities | $17,240,265 | $17,833,785 | | **Total Equity** | **$8,277,572** | **$8,183,981** | BXP Consolidated Cash Flows (Q1 2024 vs Q1 2023) | Cash Flow From | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Operating Activities | $197,595 | $234,010 | | Investing Activities | ($286,619) | ($285,592) | | Financing Activities | ($756,909) | $279,052 | [Boston Properties Limited Partnership (BPLP) Consolidated Financial Statements](index=13&type=section&id=Boston%20Properties%20Limited%20Partnership%20Consolidated%20Financial%20Statements) BPLP reported Q1 2024 revenues of $839.4 million and net income of $91.1 million, with total assets of $25.3 billion BPLP Consolidated Statement of Operations (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | $839,439 | $803,200 | | **Net Income Attributable to BPLP** | $91,080 | $88,830 | | **Diluted EPU** | $0.52 | $0.51 | BPLP Consolidated Balance Sheet Highlights (as of March 31, 2024) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total Real Estate | $20,527,087 | $20,350,561 | | **Total Assets** | **$25,284,777** | **$25,783,251** | | Total Liabilities | $17,240,265 | $17,833,785 | | **Total Capital** | **$6,735,962** | **$6,593,508** | [Notes to the Consolidated Financial Statements](index=20&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Details key Q1 2024 events including a JV acquisition, an impairment loss, an asset sale, and financing activities - As of March 31, 2024, the Company owned or had interests in a portfolio of 187 commercial real estate properties totaling approximately **53.5 million net rentable square feet**[68](index=68&type=chunk) - On January 8, 2024, the Company acquired its joint venture partner's 50% interest in the venture owning 901 New York Avenue, DC, resulting in a **gain on consolidation of approximately $21.8 million**[132](index=132&type=chunk)[342](index=342&type=chunk)[432](index=432&type=chunk) - The Company recognized an **impairment loss of approximately $13.6 million** on its Shady Grove property in Rockville, Maryland, due to a shorter-than-expected hold period[105](index=105&type=chunk)[115](index=115&type=chunk)[344](index=344&type=chunk) - On March 21, 2024, the Company sold a **45% interest in the 290 Binney Street development project** in Cambridge, MA, with an institutional investor funding approximately $97.2 million at closing[189](index=189&type=chunk)[322](index=322&type=chunk) - In February 2024, BPLP **repaid $700.0 million** of its 3.800% senior notes at maturity[148](index=148&type=chunk)[347](index=347&type=chunk)[507](index=507&type=chunk) - Subsequent to quarter-end, in April 2024, BPLP established a **$500 million unsecured commercial paper program** and increased its 2021 Credit Facility borrowing capacity to **$2.0 billion**[243](index=243&type=chunk)[271](index=271&type=chunk)[323](index=323&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2024 performance, leasing activity, and financial condition in a challenging office market [Overview and Outlook](index=46&type=section&id=Overview%20and%20Outlook) Management outlines its strategy of focusing on premier workplaces, which outperform the broader office market - The company's core strategy is to develop, acquire, and manage premier workplaces in gateway markets, focusing on long-term leases with financially strong clients[251](index=251&type=chunk) - Management believes premier workplaces have consistently and substantially outperformed the broader office market, validating their strategy; approximately **89% of the company's share of NOI comes from CBD assets**[290](index=290&type=chunk)[295](index=295&type=chunk) - Key external forces impacting performance are interest rates and corporate earnings, with projected S&P 500 earnings growth of **11-13% over the next two years** expected to be constructive for leasing[253](index=253&type=chunk)[279](index=279&type=chunk) [Leasing and Investment Activity](index=48&type=section&id=Leasing%20and%20Investment%20Activity) BXP executed 900,000 sq ft of leases in Q1 2024 and advanced its development and investment pipeline - Executed 61 leases totaling approximately **900,000 sq. ft. in Q1 2024**, compared to 660,500 sq. ft. in Q1 2023[283](index=283&type=chunk) - Overall in-service office and retail occupancy was **88.2% at March 31, 2024**, a 20 basis point decrease from December 31, 2023; including signed leases not yet commenced, the portfolio was 89.9% leased[284](index=284&type=chunk) - The development/redevelopment pipeline includes 11 properties totaling 3.2 million sq. ft with a remaining company share of cost of approximately **$1.4 billion**[299](index=299&type=chunk)[445](index=445&type=chunk) - Completed the sale of a 45% interest in the 290 Binney Street life sciences development, reducing BXP's share of the estimated development spend by approximately **$533.5 million**[286](index=286&type=chunk) [Results of Operations](index=54&type=section&id=Results%20of%20Operations) Total portfolio NOI grew 3.6%, while Same Property NOI declined 1.6% due to lower occupancy and higher interest costs Net Operating Income (NOI) Comparison (Q1 2024 vs Q1 2023) | Portfolio | Q1 2024 NOI (in thousands) | Q1 2023 NOI (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Same Property Portfolio | $483,295 | $491,212 | (1.61)% | | **Total Portfolio** | **$508,820** | **$491,006** | **3.63%** | - Interest expense **increased by $27.7 million (20.6%)** year-over-year, primarily due to new mortgage loan financings and the issuance of senior notes in 2023[328](index=328&type=chunk)[386](index=386&type=chunk)[613](index=613&type=chunk) - Income from unconsolidated joint ventures increased by $26.8 million, largely due to a **$21.8 million gain on the consolidation** of 901 New York Avenue[328](index=328&type=chunk)[432](index=432&type=chunk) - An **impairment loss of $13.6 million** was recognized on the Shady Grove property due to a revised, shorter holding period[344](index=344&type=chunk)[385](index=385&type=chunk)[434](index=434&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $502.5 million in cash and a $2.0 billion credit facility as of May 2, 2024 - As of May 2, 2024, liquidity included approximately **$502.5 million in cash** and **$2.0 billion available** under the 2021 Credit Facility[426](index=426&type=chunk) - Subsequent to quarter-end, BPLP established a **$500M commercial paper program**, using proceeds to reduce its 2023 Unsecured Term Loan[323](index=323&type=chunk)[447](index=447&type=chunk)[534](index=534&type=chunk) - The development pipeline has a remaining funding requirement of approximately **$1.4 billion through 2027**[445](index=445&type=chunk) Consolidated Debt Summary (as of March 31, 2024) | Debt Component | Amount (in thousands) | | :--- | :--- | | Mortgage notes payable, net | $4,368,367 | | Unsecured senior notes, net | $9,794,527 | | Unsecured term loan, net | $1,199,430 | | **Total Consolidated Debt** | **$15,362,324** | [Funds from Operations (FFO)](index=80&type=section&id=Funds%20from%20Operations%20(FFO)) Diluted FFO per share remained stable at $1.73 for Q1 2024, consistent with the prior-year period FFO Reconciliation and Per Share Data (BXP) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income Attributable to BXP (in thousands) | $79,883 | $77,890 | | **Diluted FFO Attributable to BXP (in thousands)** | **$271,303** | **$271,981** | | Diluted Weighted Avg. Shares (in thousands) | 157,132 | 157,043 | | **Diluted FFO per Share** | **$1.73** | **$1.73** | [Quantitative and Qualitative Disclosures about Market Risk](index=86&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk from interest rates is fully hedged for its $2.1 billion of variable-rate debt - The company's predominant market risk is changes in interest rates[553](index=553&type=chunk) - As of March 31, 2024, the company had **$2.1 billion of variable-rate debt, all of which was fixed** through interest rate swaps, leaving no unhedged variable-rate debt[553](index=553&type=chunk) Debt Maturity Profile as of March 31, 2024 | Maturity Year | Total Debt (in thousands) | | :--- | :--- | | 2024 | $1,177,770 | | 2025 | $1,338,197 | | 2026 | $1,984,958 | | 2027 | $3,038,308 | | 2028 | $1,591,290 | | 2029+ | $6,231,801 | | **Total** | **$15,362,324** | [Controls and Procedures](index=87&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024 - The CEO and CFO concluded that **disclosure controls and procedures for both BXP and BPLP were effective** as of March 31, 2024[555](index=555&type=chunk)[556](index=556&type=chunk) - **No material changes** to internal control over financial reporting occurred during the first quarter of 2024[530](index=530&type=chunk)[531](index=531&type=chunk) [PART II. OTHER INFORMATION](index=88&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Risk Factors](index=88&type=section&id=ITEM%201A.%20Risk%20Factors) Confirms no material changes to risk factors disclosed in the 2023 Annual Report on Form 10-K - There were **no material changes** to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[533](index=533&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=88&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the issuance of common units to BXP and minor share repurchases for employee tax obligations - BPLP issued **84,546 common units to BXP for approximately $0.5 million** in connection with BXP's employee stock plans under a Section 4(a)(2) exemption[576](index=576&type=chunk) - BXP repurchased **12,546 shares of its common stock at an average price of $69.32 per share** from employees to satisfy tax withholding obligations[575](index=575&type=chunk)[576](index=576&type=chunk) [Other Information](index=89&type=section&id=ITEM%205.%20Other%20Information) Reports no adoption, termination, or modification of Rule 10b5-1 trading arrangements by directors or officers - During Q1 2024, **no directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement**[563](index=563&type=chunk)

Q1 2024 Lease expirations - Los Angeles region in-service properties 1, 2, 3 as of March 31, 2024 OFFICE | --- | --- | --- | --- | --- | --- | --- | |------------------------------|---------------------------------------------------------|---------------------------------------------------------|------------------------------------------------------------------|---------------------|-------------------------------------------------------------------------------|-------| | Year of Lease \nExpiration | Rentab ...

Boston Properties Inc.’s (BXP) first-quarter 2024 funds from operations (FFO) per share of $1.73 was in line with the Zacks Consensus Estimate. The reported figure remained unchanged year over year.BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter acted as a dampener. BXP also lowered its guidance for 2024 FFO per share.Quarterly revenues from lease came in at $788.6 million, up 4.2% year over year. The Zacks Co ...

For the quarter ended March 2024, Boston Properties (BXP) reported revenue of $788.59 million, up 4.2% over the same period last year. EPS came in at $1.73, compared to $0.50 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $768.91 million, representing a surprise of +2.56%. The company has not delivered EPS surprise, with the consensus EPS estimate being $1.73. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...