UPDATE 1-Boston Properties, Hines to build tallest U.S. West Coast tower

Tue Oct 23, 2012 6:23pm EDT

* 61-story office tower to be built in central San Francisco

* To be built adjacent to Transbay Transit Center

* Third-quarter FFO $1.16/shr vs $1.28/shr year ago

* Sees fourth-quarter FFO $1.22-$1.24/share vs est $1.25/shr

Oct 23 (Reuters) - Boston Properties Inc and privately held Hines Development said on Tuesday they have formed a joint venture to build a 1,070-foot-tall San Francisco office building that will be the tallest skyscraper on the U.S. West Coast.

The 1.4 million square-foot Transbay Tower will be built adjacent to the Transbay Transit Center, a $4 billion transportation hub now under construction that will connect 11 area transit systems as well as long-distance transport.

The developers said they expect to buy the land for the 61-story building from the Transbay Joint Powers Authority for $190 million by the end of the first quarter of 2013. Hines and Boston Properties will each have a 50 percent interest in the venture.

The companies did not disclose the total cost of the project, and company representatives did not immediately return phone calls.

Separately, Boston Properties, which had 152 properties as of Sept. 30, reported funds from operations (FFO) of $176.1 million, or $1.16 per share, for the third quarter, compared with $190.3 million, or $1.28 per share, a year earlier.

FFO removes the profit-reducing effect that depreciation, a noncash item, has on earnings.

The company, whose chief executive is publisher Mortimer Zuckerman, forecast FFO of between $1.22 and $1.24 per share for the fourth quarter.

Analysts were expecting fourth-quarter FFO of $1.25 per share, according to Thomson Reuters I/B/E/S.

Shares of Boston Properties closed at $107.69 on the New York Stock Exchange on Tuesday.

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