Core Viewpoint - BXP, Inc. reported second-quarter 2024 funds from operations (FFO) per share of $1.77, exceeding the Zacks Consensus Estimate of $1.72, but reflecting a year-over-year decline of 4.8% [1] Financial Performance - Quarterly revenues from leases reached $790.6 million, marking a 3.8% increase year over year, surpassing the Zacks Consensus Estimate of $781.3 million. Total revenues rose 4.1% from the prior-year quarter to $850.5 million [2] - BXP's rental revenues for the office portfolio were $767.4 million, showing a slight decline year over year. The hotel and residential segment reported $27 million, a 3.1% increase year over year. Consolidated rental revenues (excluding termination income) totaled $794.5 million, down marginally year over year [3] - The company's share of same property net operating income (NOI) on a cash basis was $446.2 million, a decline of 3.2% from the prior-year quarter. EBITDAre (on a cash basis) was $466.2 million, up 3% from $452.5 million as of March 31, 2024 [4] Cost Structure - Quarterly interest expenses increased by 5% year over year to $149.6 million, slightly above the estimated $149 million [5] Portfolio Activity - As of June 30, 2024, BXP's portfolio included 186 properties totaling 53.5 million square feet, with 10 properties under construction or redevelopment. The company executed 73 leases totaling 1.3 million square feet during the second quarter, with a weighted average lease term of nine years [6] - BXP completed the retail redevelopment of 760 Boylston Street in Boston, MA, which is fully leased to DICK'S Sporting Goods. Additionally, in July 2024, BXP partially placed in service Skymark in Reston, VA, a residential property with 508 units [7] Balance Sheet Position - BXP ended the second quarter of 2024 with cash and cash equivalents of $685.4 million, down from $701.7 million as of March 31, 2024. The company's share of net debt to EBITDAre annualized was 7.91, up from 7.81 times as of March 31, 2024 [8] 2024 Outlook - BXP projects FFO per share for the third quarter of 2024 to be in the range of $1.80-$1.82. For the full year 2024, FFO per share is expected to be between $7.09-$7.15, an increase from the previous projection of $6.98-$7.10, and higher than the Zacks Consensus Estimate of $7.04. The outlook for same property NOI on a cash basis is projected to decrease between 3% and 1.5%, with average in-service portfolio occupancy expected to be between 87.00-88.20% [9][10]

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, ...