Boston Properties 3rd-Quarter Net Soars on Rising Base Rents

   By John Kell 
 

Boston Properties Inc.'s (BXP) third-quarter profit more than doubled as the office landlord reported a jump in base rent revenue, while a key metric known as funds from operations jumped.

The real-estate investment trust, which also manages and develops hotels and industrial properties, has recorded a steady string of sales gains, though earnings at times have been weighed by expenses and charges. Its properties are concentrated in the Boston, Midtown Manhattan and Washington markets, where rents remained relatively high through the recession.

Looking ahead, Boston Properties sees funds from operations--a key profitability metric for REITs--of $1.23 to $1.25 a share. Analysts surveyed by Thomson Reuters expected adjusted FFO of $1.30 a share.

For the year, Boston Properties now sees FFO of $5.20 to $5.35 a share, up from the lowered July view of $4.89 to $4.94 a share.

Overall, Boston Properties reported a profit of $155.3 million, up from $57.2 million a year ago. On a per-share basis, which includes the impact of preferred dividends in the most recent period, earnings grew to $1 from 38 cents.

FFO grew to $1.29 a share from $1.15 a share a year ago, on the high end of the company's estimate in July.

Total revenue jumped 23% to $574.1 million, beating the $511 million estimated by analysts. The top line was bolstered by higher base rents, as well as rising revenue in recoveries from tenants.

Shares closed up 0.5% to $107.96 on Tuesday and were unchanged in after-hours trading. The stock has risen 2% in 2013, underperforming the broader market.

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