For the quarter ended June 2024, Boston Properties (BXP) reported revenue of $790.56 million, up 3.8% over the same period last year. EPS came in at $1.77, compared to $0.66 in the year-ago quarter. The reported revenue represents a surprise of +1.18% over the Zacks Consensus Estimate of $781.32 million. With the consensus EPS estimate being $1.72, the EPS surprise was +2.91%. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and wh ...

Over the last four quarters, the company has surpassed consensus FFO estimates three times. Boston Properties (BXP) came out with quarterly funds from operations (FFO) of $1.77 per share, beating the Zacks Consensus Estimate of $1.72 per share. This compares to FFO of $1.86 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of 2.91%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.73 per share ...

Property and Occupancy - Total in-service properties amount to 176, covering 50,407,904 square feet with an occupancy rate of 87.1% and a leased percentage of 89.1%[1] - As of June 30, 2024, the total square footage of properties is 10,399,609 with an overall occupancy rate of 90.8%[39] - The total number of buildings across all listed properties is 19[39] - The company has a 50% ownership in Dock 72, which has an occupancy rate of 33.4%[39] - The overall occupancy rate for the San Francisco office properties is 84.0%[39] - The company has a total of 29 buildings in the Washington, DC CBD, with an average occupied percentage of 90.9%[48] - The total square footage for the Boston suburban area is 4,677,825, with an average occupied percentage of 76.8%[48] Financial Performance - BXP's share of EBITDA re – cash for Q2 2024 was $466,203, an increase from $452,490 in Q1 2024, representing a growth of approximately 3.9%[13] - Revenue for Q2 2024 was $850,482, an increase from $839,439 in Q1 2024, representing a growth of approximately 1.24%[158] - Total rental revenue for the three months ended June 30, 2024, was $189,389,000, a decrease from the previous period[164] - Net Operating Income (NOI) for the same period was $114,157,000, reflecting a decline compared to prior results[164] - BXP's share of net debt increased slightly to $14,735,679 as of June 30, 2024, compared to $14,689,415 at the end of Q1 2024[13] - The company reported a net income of $46,012,000, with BXP's share of Funds From Operations (FFO) amounting to $52,018,000[26] Debt and Financing - The company has an unsecured credit facility of $2 billion, with a remaining capacity of $1,493,373 as of June 30, 2024[3] - The total outstanding debt to total assets ratio is 47.3%, well below the 60% limit[9] - Interest coverage ratio, calculated as annualized consolidated EBITDA to annualized interest expense, is 3.15, exceeding the 1.50x requirement[9] - The weighted average remaining lease term for top clients is 7.7 years for Salesforce and 12.8 years for Google[2] - The company’s fixed rate debt constitutes 92.20% of total debt, with a weighted average GAAP rate of 4.01%[5] - The unsecured term loan outstanding as of June 30, 2024, is $700,000, representing 71.55% of total debt[4] Rental Obligations and Lease Expirations - The annualized rental obligations per occupied square foot stand at $80.70[1] - The annualized rental obligations per occupied square foot for the total portfolio is $109.85[39] - In 2024, 1,425,834 square feet are subject to expiring leases, with current annualized rental obligations of $86,146,800, averaging $66.79 per square foot[52] - For 2025, 2,739,994 square feet are subject to expiring leases, with annualized rental obligations of $170,192,086, averaging $72.90 per square foot[52] - The company has a total of 13,759,116 square feet subject to expiring leases thereafter, with obligations of $890,223,601, averaging $80.71 per square foot[52] - The total annualized rental obligations for the "Thereafter" period (beyond 2033) is estimated at $347,331,376, covering 5,139,666 square feet[58] Operational Efficiency and Sustainability - The company has achieved a twelfth consecutive GRESB "Green Star" recognition and the highest GRESB 5-star Rating, highlighting its commitment to sustainability[130] - BXP has been recognized as one of the world's most sustainable companies by TIME Magazine, reflecting its focus on responsible growth[130] - The company is actively pursuing new product and technology developments to enhance operational efficiency and market competitiveness[26] - BXP's average economic occupancy is calculated by measuring total possible revenue less vacancy loss, expressed as a percentage[123] - The company emphasizes the importance of NOI – cash, which excludes non-cash rental revenues, to provide a clearer picture of cash generated at the property level[152] Market Position and Future Outlook - The company operates in six dynamic gateway markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC[130] - The company anticipates continued growth in rental revenue driven by strategic market expansions and new developments[26] - BXP aims to maintain a strong balance sheet to ensure consistent access to capital for new investments[184] - The company is actively monitoring lease expirations and rental obligations to optimize its portfolio and financial performance[69] - The company plans to continue focusing on market expansion and new product development to enhance future revenue streams[36]

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)