Boston Properties (BXP) Up 1.7% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Boston Properties (BXP) reported its fourth-quarter 2024 results, showing a mixed performance with FFO per share meeting estimates but declining year-over-year, while revenues increased due to healthy leasing activity [2][3]. Financial Performance - BXP's fourth-quarter 2024 FFO per share was $1.79, in line with estimates but down 1.6% year-over-year [2]. - Quarterly lease revenues reached$ 798.2 million, up 3.8% year-over-year, while total revenues increased 3.6% to $858.6 million [3]. - For the full year 2024, FFO per share was reported at$ 7.10, compared to $7.28 in the previous year [3]. Revenue Breakdown - Rental revenues for the office portfolio were$ 777.4 million, a 0.9% increase year-over-year, while the hotel & residential segment saw revenues of $25.6 million, up 8.5% [4]. - Consolidated rental revenues (excluding termination income) totaled$ 803 million, reflecting a 1.2% year-over-year increase [4]. Operational Metrics - BXP's share of same-property NOI on a cash basis was $447.2 million, up 0.9% from the prior year [5]. - The occupancy rate for in-service properties increased by 50 basis points to 87.5% [5]. Portfolio Activity - As of December 31, 2024, BXP's portfolio included 185 properties totaling 53.3 million square feet, with seven properties under construction [6]. - The company executed 83 leases covering over 2.3 million square feet during the fourth quarter [6]. Acquisition and Development - In December, BXP acquired a property at 725 12th Street in Washington, DC, for$ 34 million, planning to redevelop it into a 320,000 square foot workplace [7]. Balance Sheet Position - BXP ended the fourth quarter with cash and cash equivalents of $1.25 billion, down from$ 1.42 billion [8]. - The net debt to EBITDAre ratio was 7.65, slightly up from 7.59 [8]. 2025 Guidance - BXP projects FFO per share for Q1 2025 to be between $1.63 and$ 1.65, with an annual estimate of $6.77 to$ 6.95 [9]. - The company expects same-property NOI growth of approximately 1.50% for 2025 and an average occupancy rate between 86.5% and 88% [9]. Market Sentiment - There has been a downward trend in estimates for BXP, indicating a potential shift in market sentiment [10][12]. - The stock currently holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the near term [12].