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Boston Properties(BXP) - 2024 Q4 - Annual Results
BXPBoston Properties(BXP)2025-01-28 21:38

Company Overview - BXP's total properties amount to 185, encompassing 53.3 million square feet, including 7 properties under construction/redevelopment[12]. - BXP's market capitalization stands at 29.3billion,reflectingitspositionasaleadingrealestateinvestmenttrust(REIT)[12].−Thecompanymaintainsastrongbalancesheettoensureconsistentaccesstocapitalandtheabilitytomakenewinvestmentsatopportunetimes[15].FinancialPerformance−TotalrevenueforQ42024was29.3 billion, reflecting its position as a leading real estate investment trust (REIT)[12]. - The company maintains a strong balance sheet to ensure consistent access to capital and the ability to make new investments at opportune times[15]. Financial Performance - Total revenue for Q4 2024 was 858,571,000, with a slight decrease from 859,227,000inQ32024[20].−NetincomeattributabletoBXP,Inc.forQ42024wasalossof859,227,000 in Q3 2024[20]. - Net income attributable to BXP, Inc. for Q4 2024 was a loss of 230,019,000, compared to a profit of 83,628,000inQ32024[25].−Fundsfromoperations(FFO)attributabletoBXP,Inc.forQ42024was83,628,000 in Q3 2024[25]. - Funds from operations (FFO) attributable to BXP, Inc. for Q4 2024 was 283,989,000, down from 286,858,000inQ32024[25].−Thecompanyreportedanetlossof286,858,000 in Q3 2024[25]. - The company reported a net loss of 355,000 for the three months ended December 31, 2024[102]. - BXP's total revenue for the three months ended December 31, 2024, was 858,571,aslightdecreaseof0.8858,571, a slight decrease of 0.8% from 859,227 in the previous quarter[183]. Earnings Guidance - BXP's guidance for Q1 and full year 2025 includes diluted earnings per common share and diluted funds from operations per common share, with estimates reflecting current market conditions[16]. - Projected diluted EPS for Q1 2025 is estimated to be between 0.33and0.33 and 0.35, and for the full year 2025, it is projected to be between 1.57and1.57 and 1.75[17]. Occupancy and Rental Rates - Average in-service portfolio occupancy is expected to range from 86.50% to 88.00% for the full year 2025[18]. - The total space available for lease at the end of Q4 2024 was 6,122,074 SF, reflecting a net decrease of 199,435 SF during the quarter[46]. - Average monthly rental rate in Boston increased by 2.63% to 4,445comparedto4,445 compared to 4,331 in the previous year[53]. - Average economic occupancy at Signature at Reston decreased to 94.97%, down from 95.37% year-over-year[54]. Sustainability and Innovation - The company has achieved a twelfth consecutive GRESB "Green Star" recognition and the highest GRESB 5-star Rating, highlighting its commitment to sustainability[2]. - BXP emphasizes sustainability innovation to minimize emissions from its development and in-service portfolio[15]. - The company actively works to promote its growth and operations in a sustainable and responsible manner, aiming to provide superior service to clients[2]. Capital Expenditures and Investments - Total capital expenditures for Q4 2024 amounted to 54,711,000,upfrom54,711,000, up from 42,864,000 in Q3 2024[34]. - The company completed acquisitions totaling 823,939 square feet, with an initial investment of 44millionandanticipatedfutureinvestmentof44 million and anticipated future investment of 340.6 million, resulting in a total investment of 384.6million[37].−Thecompanyhas2,285,000squarefeetofpropertiesunderconstruction,withatotalinvestmentof384.6 million[37]. - The company has 2,285,000 square feet of properties under construction, with a total investment of 929.7 million and an estimated future equity requirement of 1,198.7million[40].DebtandFinancialRatios−ConsolidateddebtasofDecember31,2024,was1,198.7 million[40]. Debt and Financial Ratios - Consolidated debt as of December 31, 2024, was 16,220,499,000, showing a marginal increase from 16,215,246,000inthepreviousquarter[22].−Theweightedaveragestatedinterestrateforunsecureddebtis4.1116,215,246,000 in the previous quarter[22]. - The weighted average stated interest rate for unsecured debt is 4.11%, while the GAAP rate is 4.23%[80]. - The company reported a net debt of 14,965,617, with a net debt to EBITDAre ratio of 7.65[87]. - The Debt to Market Capitalization Ratio stood at 35%, indicating a stable leverage position[164]. Lease Expirations and Future Obligations - Lease expirations in 2024 represent 0.96% of total rentable square footage, with annualized rental obligations of 23.252million[103].−Thetotalannualizedrentalobligationsunderexpiringleasesfor2025amountto23.252 million[103]. - The total annualized rental obligations under expiring leases for 2025 amount to 46,240,038, with an average of 88.32persquarefoot[123].−Thecompanyhasasignificantamountofleasesexpiringthereafter,totaling3,729,721squarefeet,withannualizedrentalobligationsof88.32 per square foot[123]. - The company has a significant amount of leases expiring thereafter, totaling 3,729,721 square feet, with annualized rental obligations of 202,759,422 at a rate of 60.58persquarefoot[138].JointVenturesandPartnerships−Thecompany’sshareofunconsolidatedjointventuredebtwas60.58 per square foot[138]. Joint Ventures and Partnerships - The company’s share of unconsolidated joint venture debt was 1,383,764[87]. - BXP's share of revenue from unconsolidated joint ventures was 55,128,comparedto55,128, compared to 55,067 in the prior quarter, indicating a marginal increase[183]. - The company provided 80.0millionofmortgagefinancingtothejointventure,whichhadanoutstandingbalanceofapproximately80.0 million of mortgage financing to the joint venture, which had an outstanding balance of approximately 120.0 million as of December 31, 2024[102]. Market Expansion and Strategic Plans - The Company plans to expand its market presence by entering two new metropolitan areas in 2025[158]. - The Company has initiated a strategic acquisition plan targeting properties with high growth potential, aiming for $1 billion in acquisitions over the next two years[160].