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Boston Properties (BXP) Q4 FFO Beats, Leasing Momentum Strong

·3 min read

Boston Properties Inc.’s BXP fourth-quarter 2021 funds from operations (FFO) per share of $1.55 beat the Zacks Consensus Estimate of $1.52. The figure also compared favorably with the year-ago quarter’s tally of $1.37.

The quarterly figure also exceeded the mid-point of the company’s fourth-quarter guidance by 5 cents, reflecting an improved portfolio performance. BXP also experienced strong leasing activity in the fourth quarter.

Quarterly revenues from lease came in at $690.9 million, up from $639.4 million in the year-ago quarter. However, the figure narrowly missed the consensus mark of $695.1 million.

For 2021, Boston Properties reported FFO per share of $6.56, up 4.3% from $6.29 in the prior year and beat the Zacks Consensus Estimate of $6.53. Lease revenues of $2.75 billion increased 4% year over year.

Inside the Headline Numbers

During the fourth quarter, Boston Properties executed 1.8 million square feet of leases with a weighted-average lease term of 8.6 years. Reflecting strong demand in BXP’s growing life science portfolio, more than 25% of the square footage signed in the fourth quarter was leased to life sciences clients.

With this, Boston Properties’ total leasing activity for 2021 reached roughly 5.1 million square feet and leasing activity was widely spread across the REIT’s key markets. BXP has experienced a steady increase in leasing activity throughout 2021 and the fourth quarter marked the achieving of the largest square footage leased since third-quarter 2019’s 2 million square feet. It also marks a 55% increase from the year-ago quarter.

As of Dec 31, 2021, Boston Properties’ portfolio comprised 201 properties, covering 52.8 million square feet of space. This included nine properties under construction/redevelopment.

Liquidity

Boston Properties exited 2021 with $452.7 million of cash and cash equivalents, down from $1.67 billion at the end of 2020.

Outlook

For the first quarter, Boston Properties projected FFO per share of $1.72-$1.74. The Zacks Consensus Estimate for the same is currently pegged at $1.74.

For 2022, BXP projects FFO per share of $7.30-$7.45. The guided range is in line with the Zacks Consensus Estimate of $7.33.

Boston Properties currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Properties, Inc. Price, Consensus and EPS Surprise

Boston Properties, Inc. Price, Consensus and EPS Surprise
Boston Properties, Inc. Price, Consensus and EPS Surprise

Boston Properties, Inc. price-consensus-eps-surprise-chart | Boston Properties, Inc. Quote

It’s time to look forward to the earnings releases of REITs like Alexandria Real Estate Equities, Inc. ARE, Equity Residential EQR and Cousins Properties Incorporated CUZ.

Alexandria Real Estate is scheduled to report its numbers on Jan 31, Equity Residential and Cousins Properties are slated to release fourth-quarter 2021 results on Feb 1 and Feb 3, respectively.

The Zacks Consensus Estimate for Alexandria Real Estate’s fourth-quarter 2021 FFO per share is pegged at $1.96, suggesting a year-over-year increase of 6.5%. ARE currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Equity Residential’s fourth-quarter 2021 FFO per share stands at 80 cents, indicating a year-over-year increase of 5.3%. EQR currently has a Zacks Rank of 3.

The Zacks Consensus Estimate for Cousins Properties’ fourth-quarter 2021 FFO per share is pegged at 69 cents, implying a year-over-year increase of 1.5%. CUZ currently carries a Zacks Rank of 4 (Sell).

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


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