Boston Properties Q4 FFO Meets Estimates, Revenues Increase Y/Y

Core Viewpoint - Boston Properties Inc. (BXP) reported its fourth-quarter 2024 funds from operations (FFO) per share at $1.79, aligning with the Zacks Consensus Estimate, but reflecting a 1.6% decline year over year [1][2]. Financial Performance - Quarterly lease revenues reached$ 798.2 million, marking a 3.8% increase year over year, surpassing the Zacks Consensus Estimate of $795.3 million. Total revenues rose 3.6% to$ 858.6 million [3]. - For the full year 2024, BXP's FFO per share was $7.10, matching the Zacks Consensus Estimate but down from$ 7.28 in the previous year. Lease revenues totaled $3.18 billion, up 4% year over year [3]. - Rental revenues for the office portfolio were$ 777.4 million, a 0.9% increase year over year, while the hotel & residential segment saw revenues of $25.6 million, an 8.5% rise [4]. - BXP's share of same-property net operating income (NOI) on a cash basis was$ 447.2 million, up 0.9% from the prior year, and its share of EBITDAre was $476.4 million, a 1.4% increase [5]. Interest Expenses and Occupancy - Quarterly interest expenses increased by 9.9% year over year to$ 170.4 million [6]. - The occupancy rate for BXP's in-service properties rose by 50 basis points sequentially to 87.5%, slightly above the estimated 87.3% [5]. Portfolio Activity - As of December 31, 2024, BXP's portfolio included 185 properties totaling 53.3 million square feet, with seven properties under construction or redevelopment. The company executed 83 leases covering over 2.3 million square feet during the fourth quarter [7]. - In December, BXP acquired a property at 725 12th Street in Washington, DC, for $34 million, planning to redevelop it into a premier workplace of approximately 320,000 square feet [8]. Balance Sheet Position - BXP ended the fourth quarter with cash and cash equivalents of$ 1.25 billion, down from $1.42 billion as of September 30, 2024. The net debt to EBITDAre ratio was 7.65, up from 7.59 times [9]. 2025 Guidance - For the first quarter of 2025, BXP projects FFO per share in the range of$ 1.63 to $1.65. For the full year, FFO per share is expected to be between$ 6.77 and $6.95, with the Zacks Consensus Estimate at$ 7.11 [10][11]. - The company anticipates a change in same-property NOI on a cash basis to be within 1.50% for 2025, with average in-service portfolio occupancy expected between 86.5% and 88% [11]. Zacks Rank - Boston Properties currently holds a Zacks Rank 3 (Hold) [12]. Performance of Other REITs - SL Green Realty Corp. reported a fourth-quarter 2024 FFO per share of $1.45, missing estimates, while Alexandria Real Estate Equities, Inc. met its estimates with an AFFO per share of$ 2.39, reflecting a 4.8% year-over-year increase [13][14].