Boston Properties(US:BXP) ZACKS·2025-04-30 14:40Core Viewpoint - Boston Properties Inc. (BXP) reported a first-quarter 2025 funds from operations (FFO) per share of $1.64, which missed the Zacks Consensus Estimate of $1.65 and represented a 5.2% decline year over year. The results were impacted by lower occupancy despite better-than-expected revenues from healthy leasing activity, leading to a revision in the 2025 FFO guidance [1][8]. Financial Performance - Quarterly lease revenues reached $811.1 million, reflecting a 2.9% increase year over year, surpassing the Zacks Consensus Estimate of $790.9 million. Total revenues rose by 3.1% from the prior-year quarter to $865.2 million [2]. - Rental revenues for the office portfolio (excluding termination income) amounted to $799.2 million, up 1.5% year over year. The hotel and residential segment reported $21.9 million, indicating a 5.2% increase year over year. Consolidated rental revenues (excluding termination income) totaled $821.1 million, up 1.6% year over year [3]. - BXP's share of same-property net operating income (NOI) on a cash basis (excluding termination income) was $460.9 million, a 1.8% increase from the prior-year quarter. The share of EBITDAre (on a cash basis) was $455.6 million, slightly up from $452.5 million as of March 31, 2024 [4]. Occupancy and Leasing Activity - The occupancy rate for BXP's in-service properties decreased by 60 basis points sequentially to 86.9%, attributed to the lease expiration of 350,000 square feet at 200 Fifth Avenue in New York [5]. - During the first quarter, BXP executed 91 leases covering over 1.1 million square feet, a 25% increase year over year, with a weighted average lease term of 10.9 years. Additionally, BXP formed a joint venture to develop a 670-unit residential project valued at approximately $455.8 million [6]. Balance Sheet Position - At the end of the first quarter of 2025, BXP had cash and cash equivalents of $398.1 million, a decrease from $1.25 billion as of December 31, 2024. The company's share of net debt to EBITDAre, annualized, increased to 8.33 times from 7.65 times as of December 31, 2024 [7]. Guidance Revision - BXP revised its FFO per share guidance for 2025, now projecting a range of $6.80 to $6.92, down from the previous range of $6.77 to $6.95. The Zacks Consensus Estimate is currently at $6.90, which falls within the new guidance range [8]. - The company estimates a change in its share of same-property NOI on a cash basis (excluding termination income) to be between 0.50% and 1.50% for 2025 [9].