NEW YORK Aug 6 Office building landlord Boston
Properties Inc 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
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
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.