Boston Properties forecasts weak full-year FFO on higher interest expenses
Nov 1 (Reuters) - Boston Properties on Wednesday forecast full-year funds from operations (FFO) per share below Wall Street estimates as high interest rates pressure office mortgages.
The company, which is the largest publicly-traded developer of premier workplaces in the United States, expects full-year FFO between $7.25 and $7.27 per share, compared to analysts' estimates of $7.29 per share as per LSEG data.
Office occupancy levels across the United States remain well below pre-pandemic levels, leading to a rise in loan defaults and delinquencies.
Many office owners have billions of dollars of floating- and low-interest-rate mortgages that will likely need to be refinanced at much higher rates in the coming years.
The company, which owns about 194 properties in cities such as New York, San Francisco and Seattle, reported third-quarter FFO of $292.8 million, or $1.86 per share, down from $299.8 million, or $1.91 per share last year, hit by higher interest expenses.
Revenue increased 4.3% to $824.3 million for the quarter ended Sept. 30 from a year ago.
Shares of the company were down about 1% in trading after the bell. (Reporting by Mehr Bedi and Ananta Agarwal in Bengaluru; Editing by Shailesh Kuber)
