Boston Properties second-quarter results beat Street
NEW YORK (Reuters) - Office building landlord Boston Properties Inc (BXP.N) on Monday reported quarterly funds from operations, a key measure of real estate investment trust performance, that easily surpassed Wall Street's forecast, in part due to termination income from a tenant at one of its largest buildings.
The company, whose chairman and chief executive is publisher Mortimer Zuckerman, reported second-quarter funds from operations, or FFO, of $206.8 million, or $1.38 per share, compared with $181.6 million, or $1.24 per share in the second-quarter 2011.
Analysts on average expected Boston Properties to post second-quarter FFO of $1.24 per share, according to Thomson Reuters I/B/E/S. The company had forecast second-quarter FFO in the range of $1.23 to $1.25 per share.
FFO removes the profit-reducing effect that depreciation, a noncash item, has on earnings.
Second-quarter FFO included 7 cents per share from termination income from a tenant at the General Motors Building in Manhattan; 2 cents a share from a settlement of a bankruptcy claim against a former tenant; and 3 cents per share from improvement in its property operations.
Boston Properties owns or has interests in properties that are mainly first-class office buildings in New York, Boston, San Francisco and the Washington D.C. area.
The company expects third-quarter FFO of $1.13 to $1.15 per share. It sees full-year FFO in the range of $4.85 to $4.91 per share, raising its outlook from an earlier forecast of $4.83 to $4.93 per share. Analysts had forecast $1.23 for the third quarter and $4.84 per share.
Boston Properties shares gained 0.2 percent to close at $113.17 on Monday, before the quarterly results came out.