- Posted at 7:28, October 30, 2013
- By Russ Bleemer
Late yesterday, REIT Boston Properties said its 2013 third quarter funds from operations (FFO) rose to $197.9 million, or $1.30 per share basic and $1.29 per share diluted, from 2012's $175.8 million, or $1.17 per share basic and $1.15 per share diluted.
That meant solid income growth, to $152.7 million, from $57.2 million in the year-ago period.
The earnings per share for the quarter were $1.00 basic and $1.00 on a diluted basis. This compares to 2012 third quarter EPS of $0.38 basic and $0.38 on a diluted basis.
At 10 a.m., the company will discuss with Wall Street analysts its prospects for 2014, including among other things, (1) expected improvement in the Company’s same property performance of 1.0% to 2.5%, adding $0.08 to $0.19 per share, (2) the July completion of a Cambridge, Mass., 43,000 square foot development and its performance, now open and fully leased, as well as three projects currently under development for next year, all of which the REIT expects will add "an aggregate of $0.16 to $0.18 per share,: (3) a decrease in interest expense after a reduction in capitalized interest and excluding the consolidation of 767 Fifth Avenue (the General Motors Building) of $0.11 to $0.13 per share, (4) the acquisition of a partner’s interest in its Mountain View Research and Technology Park properties of $0.03 per share and (5) a reduction in general and administrative expenses of $0.07 to $0.11 per share.
The company, which owns high visibility Class A properties in New York on Times Square and Park Avenue, as well as significant developments nationwide including had significant deals since the quarter ended on Sept. 30. It is expected that it will discuss today the effect on earnings of its Oct. 9 the sale of a 45% ownership interest in its Times Square Tower property for $684 million, along with a new joint venture to manage that property. It also closed an lease yesterday with NRG Energy for a build-to-suit project with about 130,000 "net rentable square feet of Class A office space" in Princeton, N.J.
The company's earnings report summary as of yesterday:
As of September 30, 2013, the Company’s portfolio consisted of 177 properties, comprised primarily of Class A office space, one hotel, three residential properties and four retail properties, aggregating approximately 44.6 million square feet, including eight properties under construction totaling 2.8 million square feet. In addition, the Company has structured parking for vehicles containing approximately 15.7 million square feet. The overall percentage of leased space for the 166 properties in service (excluding the two in-service residential properties and the hotel) as of September 30, 2013 was 92.8%.
Want to get on the call? Here's the details:
Boston Properties will host a conference call on Wednesday, October 30, 2013 at 10:00 AM Eastern Time, open to the general public, to discuss the third quarter 2013 results, the fourth quarter 2013 and fiscal year 2014 projections and related assumptions, and other related matters that may be of interest to investors. The number to call for this interactive teleconference is (877) 706-4503 (Domestic) or (281) 913-8731 (International) and entering the passcode 88056255. A replay of the conference call will be available through November 15, 2013, by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 88056255. There will also be a live audio webcast of the call which may be accessed on the Company’s website at www.bostonproperties.com in the Investor Relations section. Shortly after the call a replay of the webcast will be available in the Investor Relations section of the Company’s website and archived for up to twelve months following the call.