Boston Properties Inc.’s (BXP – Free Report) fourth-quarter 2022 funds from operations (FFO) per share of $1.86 outpaced the Zacks Consensus Estimate of $1.84. The determine elevated 18.7% 12 months over 12 months. Our estimate for a similar was $1.83.
The quarterly determine additionally exceeded the mid-point of the corporate’s fourth-quarter steering by a cent, reflecting portfolio outperformance. As well as, BXP skilled stable leasing exercise within the quarter. The corporate revised its 2023 outlook for FFO per share.
Quarterly revenues from lease got here in at $739.1 million, which surpassed the consensus mark of $732.9 million. Furthermore, the determine rose 6.9% from $690.9 million reported within the year-ago quarter. We projected the identical to be $728 million.
In 2022, Boston Properties reported FFO per share of $7.53, which beat the Zacks Consensus Estimate of $7.51. The determine in contrast favorably with the prior 12 months’s $6.56. Our estimate was $7.50. Lease revenues of $2.92 billion surpassed the Zacks Consensus Estimate of $2.91 billion and elevated 6% 12 months over 12 months. We estimated the identical to be $2.91 billion.
Quarter in Element
Boston Properties’ rental revenues (excluding termination revenue) for the workplace portfolio got here in at $697.3 million, rising 2.5% 12 months over 12 months. The identical for the lodge & residential phase aggregated $22.6 million, indicating a soar of 39.6% 12 months over 12 months.
BXP’s share of similar property web working revenue (NOI) on a money foundation (excluding termination revenue) totaled $474.1 million, up 6.8% 12 months over 12 months.
Its share of EBITDAre (on a money foundation) as of Dec 31, 2022, was $440.3 million, up from $429.5 million as of Sep 30, 2022.
BXP’s in-service properties occupancy fell 30 foundation factors sequentially to 88.6%. We estimated the identical to be 88.8%.
Portfolio Exercise
As of Dec 31, 2022, Boston Properties’ portfolio comprised 194 properties, encompassing 54.1 million sq. ft of area. This included 13 properties below building/redevelopment.
In the course of the fourth quarter, the corporate executed 1.1 million sq. ft of leases with a weighted common lease time period of seven.8 years.
BXP closed the acquisition of round 27% curiosity within the three way partnership that owns 200 Fifth Avenue, a 14-story, 855,000 sq. ft, LEED Gold-certified premier office within the Midtown South submarket of Manhattan, NY, for roughly $280.1 million. This consists of $120.1 million of money and $160 million of BXP’s professional rata share of the excellent mortgage secured by the property. At current, the property is round 93% leased.
BXP commenced the redevelopment of 105 Carnegie Heart, a 70,000 sq. ft property in Princeton, NJ. The property might be redeveloped right into a laboratory/life sciences area encompassing round 73,000 sq. ft.
Within the quarter, the corporate disposed of the residential part of The Avant at Reston City Heart, a 15-story, 359-unit luxurious multifamily constructing spanning roughly 329,000 sq. ft in Reston, VA, for $141 million. The transaction generated web proceeds of almost $138 million for the corporate and a achieve on the sale of actual property of roughly $55.6 million. BXP retained possession of the ground-level retail area protecting roughly 26,000 sq. ft.
Liquidity
Boston Properties exited fourth-quarter 2022 with $690.3 million, up from $375.8 million as of Sep 30, 2022.
BXP’s share of web debt to EBITDAre annualized was 7.57 as of Dec 31, 2022, up from 7.49 occasions as of Sep 30, 2022.
Revised 2023 Outlook
Boston Properties initiatives FFO per share for first-quarter 2023 to be within the vary of $1.66-$1.68. The Zacks Consensus Estimate for a similar is at the moment pegged at $1.77.
For 2023, FFO per share is anticipated to be within the band of $7.08-$7.18, down from $7.15-$7.30 guided earlier. The Zacks Consensus Estimate for a similar is at the moment pegged at $7.18, which lies within the guided vary.
BXP estimates the rise in its share of the identical property NOI on a money foundation (excluding termination revenue) to be between 1% and a pair of.5% for 2023. The typical in-service portfolio occupancy is anticipated to be within the band of 88-89.5%.
Boston Properties at the moment carries a Zacks Rank #3 (Maintain). You may see the entire record of right now’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Efficiency of Different REITs
SL Inexperienced Realty Corp. (SLG – Free Report) reported fourth-quarter 2022 FFO per share of $1.46, lagging the Zacks Consensus Estimate of $1.48. The determine fell 3.9% from the year-ago quarter’s $1.52.
SLG’s outcomes mirrored lower-than-anticipated revenues and a fall in occupancy. Nonetheless, same-store money NOI improved 12 months over 12 months.
Crown Citadel Inc. (CCI – Free Report) reported fourth-quarter 2022 adjusted FFO (AFFO) per share of $1.85, beating the Zacks Consensus Estimate of $1.83. Reported AFFO per share in contrast favorably with the year-ago interval’s $1.77.
The rise in site-rental revenues amid elevated tower area demand aided CCI’s year-over-year top-line development. It maintained its outlook for 2023.
Alexandria Actual Property Equities, Inc. (ARE – Free Report) reported fourth-quarter 2022 AFFO per share of $2.14, surpassing the Zacks Consensus Estimate by a cent. The reported determine additionally in contrast favorably with the year-ago quarter’s $1.97.
ARE’s outcomes mirrored first rate leasing exercise and rental fee development throughout the quarter.
Observe: Something associated to earnings introduced on this write-up symbolize FFO — a extensively used metric to gauge the efficiency of REITs.
