BXP Announces Fourth Quarter and Full Year 2023 Results
- None.
- None.
Insights
The reported earnings per share (EPS) and funds from operations (FFO) exceeding guidance for BXP, a major real estate investment trust (REIT), signify a positive deviation from projected financial performance. The EPS outperformance appears to be largely attributed to gains from unconsolidated joint ventures and higher interest income, while the FFO beat is due to similar factors. However, it's critical to note the decline in net income year-over-year, primarily due to non-cash impairment charges.
Investors should consider the implications of the non-recurring nature of some gains and the expected increase in net interest expense for future periods. The guidance for 2024 suggests a substantial increase in EPS, but a slight decrease in FFO per diluted share, indicating that while bottom-line profitability may improve, the operating performance may face headwinds. This could be a concern for investors who prioritize consistent operational cash flows over accounting profits.
The strategic acquisitions and lease extensions, such as the Santa Monica Business Park and 901 New York Avenue, demonstrate BXP's commitment to solidifying its asset base and securing long-term income streams. The sales of interests in life sciences development projects at a premium valuation also highlight the company's ability to capitalize on the robust demand for life sciences real estate, a sector that has been resilient even amid broader market uncertainties.
BXP's leasing activity, with over 1.5 million square feet in Q4 and approximately 4.2 million square feet in 2023, indicates strong demand for its properties and management capabilities. The weighted-average lease term of 8.4 years provides visibility into future revenue stability. The focus on life sciences developments, particularly in the Kendall Square area, aligns with the industry trend of growing biotech clusters and the premium on specialized real estate catering to this sector.
The guidance for 2024, with a significant projected increase in EPS, may reflect management's confidence in the company's strategic initiatives and the quality of its assets. However, the projected decrease in FFO per diluted share warrants attention, as it suggests potential challenges in maintaining the same level of operational efficiency. The anticipated higher net interest expense and lower contributions from the same property portfolio could be indicative of a changing interest rate environment and its impact on real estate operations.
BXP's activities, including the execution of leases and strategic asset management decisions, underscore the company's adaptability within the REIT sector. The decision to sell a 45% interest in two life sciences projects to Norges Bank Investment Management at a significant valuation reflects the high demand for such assets and the company's ability to unlock value through partnerships. The use of mortgage financing and interest rate swaps is a prudent approach to managing interest rate risk, particularly relevant given the current volatile rate environment.
Investors should be cognizant of the ground lease associated with the Santa Monica Business Park, which constitutes a significant portion of the square footage and carries a long-term horizon. This arrangement can provide stability but also entails specific risks and commitments. The forward-looking statements regarding EPS and FFO guidance should be interpreted with caution, as they are based on management's current assumptions, which could be subject to change due to market conditions.
Exceeded Full Year 2023 Guidance for EPS and FFO; Executed More Than 1.5 Million Square Feet of Leases in Q4 and Approximately 4.2 Million Square Feet in 2023
Financial highlights for the fourth quarter include:
-
Revenue increased
5.0% to$828.9 million $789.8 million -
Net income attributable to Boston Properties, Inc. of
$119.9 million $0.76 $121.8 million $0.78 -
EPS exceeded the mid-point of BXP’s guidance by
$0.15 -
better-than-projected income from unconsolidated joint ventures, largely from recording a gain upon consolidation of Santa Monica Business Park of
$0.17 45% interest in the asset, and -
better-than-projected interest income and development and management services income aggregating
$0.02 -
offset by higher-than-projected depreciation expense of
$0.04
-
better-than-projected income from unconsolidated joint ventures, largely from recording a gain upon consolidation of Santa Monica Business Park of
-
Funds from Operations (FFO) of
$286.2 million $1.82 $292.9 million $1.86 -
FFO per diluted share exceeded the mid-point of BXP’s guidance by
$0.02
BXP also provided guidance for first quarter 2024 EPS of
The mid-point of guidance for 2024 EPS is projected to be
-
2023 non-cash impairment charges of
$1.56 $0.23
The mid-point of guidance for 2024 FFO per diluted share is projected to be
-
higher net interest expense of
$0.31 -
lower contributions from same property portfolio performance of
$0.26 -
reduced fee and termination income of
$0.14 -
offset by an estimated
$0.42
See “EPS and FFO per Share Guidance” below.
Fourth quarter and recent business highlights include:
- Executed more than 1.5 million square feet of leases with a weighted-average lease term of 8.4 years.
-
Entered into agreements to sell a
45% interest in each of 290 Binney Street and 300 Binney Street, two life sciences development projects located in Kendall Square inCambridge, Massachusetts , to Norges Bank Investment Management (“NBIM”) at a gross valuation of approximately$1.66 billion $2,050 100% pre-leased. BXP will retain a55% ownership interest in each joint venture and will provide development, property management, and leasing services for the ventures. NBIM funded approximately$212.9 million $533.5 million
-
Closed on a five-year mortgage loan collateralized by a three-building portfolio located in
Cambridge, Massachusetts . The mortgage loan, totaling$600 million 2.25% per annum until maturity. Subsequently, BPLP entered into interest rate swap contracts with notional amounts aggregating$600.0 million 3.7925% for the period commencing on December 15, 2023 and ending on October 26, 2028 for an all in rate of6.04% per annum. BXP intends to use the net proceeds from this financing and available cash to repay the$700 million
-
Completed the acquisition of its joint venture partner’s
45% ownership interest in Santa Monica Business Park located inSanta Monica, California for a purchase price of$38.0 million $20.0 million $300.0 million 70% of the square footage is subject to a ground lease with approximately 75 years remaining, inclusive of renewal options that are subject to certain conditions.
-
Completed the acquisition of one of its joint venture partner’s approximate
29% ownership interest in 360 Park Avenue South located inNew York City ,New York for a purchase price of$1 71% . BXP also assumed the partner’s share of the joint venture’s cash and working capital aggregating approximately$25.4 million $220.0 million
-
On January 8, 2024, BXP completed the acquisition of its joint venture partner’s
50% economic ownership interest in 901 New York Avenue located inWashington, DC for a purchase price of$10.0 million $207.1 million 3.61% per annum and matures on January 5, 2025. On January 11, 2024, BXP modified the mortgage loan to provide for two loan extension options totaling five years of additional term, each subject to certain conditions. The first loan extension option, for a term of four years, is at a fixed interest rate of5.0% per annum. Subsequent to closing, BXP extended the 214,000 square foot lease with anchor client, Finnegan Henderson Farabow Garrett & Dunner, L.L.P., through 2042. 901 New York Avenue is a premier workplace consisting of approximately 548,000 net rentable square feet.
Financial highlights for the year ended December 31, 2023 include:
-
Net income attributable to Boston Properties, Inc. of
$190.2 million $1.21 $848.9 million $5.40 -
a 2023 non-cash impairment charge of
$272.6 million -
gains on sales of real estate of
$436.5 million
-
a 2023 non-cash impairment charge of
-
Funds from Operations (FFO) of
$1.1 billion $7.28 $1.2 billion $7.53
Full year 2023 business highlights include:
- Executed approximately 4.2 million square feet of leases with a weighted-average lease term of 8.2 years.
-
Completed and fully placed in-service four development projects: 2100 Pennsylvania Avenue in
Washington, DC , 140 Kendrick Street inNeedham, Massachusetts , View Boston inBoston, Massachusetts , and 751 Gateway inSouth San Francisco, California . -
Commenced the development/redevelopment of two fully pre-leased projects totaling 810,000 square feet in
Cambridge, Massachusetts : 290 Binney Street and 300 Binney Street. -
Further strengthened BXP’s balance sheet by addressing debt maturities, and sourcing additional liquidity in the bank market. In the aggregate, BXP’s share of 2023 debt market activities totaled approximately
$3.3 billion $1 billion -
On January 4, 2023, BPLP closed on a
$1.2 billion 0.85% per annum. Subsequently, on May 2, 2023, BPLP entered into four interest rate swap contracts with notional amounts aggregating$1.2 billion 4.6420% for the period commencing on May 4, 2023 and ending on May 16, 2024. A portion of the proceeds were used to repay in full BPLP’s$730.0 million $466.0 million -
On May 15, 2023, BPLP completed a public offering of
$750.0 million 6.500% unsecured senior notes due 2034. The net proceeds from the offering were approximately$741.3 million $500.0 million 3.125% senior notes due September 1, 2023.
-
On January 4, 2023, BPLP closed on a
-
Earned national recognition as an industry leader and furthered BXP’s commitments to sustainability and impact:
- Named to Newsweek’s List of America’s Most Responsible Companies in 2023 for the third consecutive year, ranking first in the Real Estate & Housing category
-
Named to the Dow Jones Sustainability Index (DJSI)
North America for the second consecutive year, one of eight real estate companies that qualified and the only office REIT in the index -
Received the 2023 ENERGY STAR Partner of the Year—Sustained Excellence Award from the
U.S. Environmental Protection Agency and theU.S. Department of Energy for the third consecutive year - In April 2023, published BXP’s 2022 ESG Report, which highlights that, among other things, BXP achieved its energy and water reduction targets in 2022 and remains on track to achieve carbon-neutral operations by 2025. In conjunction with the publication, BXP hosted its second annual ESG Investor Update Webcast on May 31, 2023.
-
Earned a top ESG rating in the 2023 GRESB® assessment, earned its 12th consecutive “Green Star” recognition and the highest GRESB 5-star rating, as well as an “A” level disclosure score. BXP also achieved the highest scores in several categories, including Data Monitoring & Review, Targets, Policies, Reporting, and Stakeholder Engagement. BXP achieved second place within its Development Peer Group, third place in its Standing Investments Peer Group, and fourth overall among
U.S. listed participants.
The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter and year ended December 31, 2023. In the opinion of management, BXP has made all adjustments considered necessary for a fair statement of these reported results.
EPS and FFO per Share Guidance:
BXP’s guidance for the first quarter 2024 and full year 2024 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in this release and those referenced during the related conference call. The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.
|
|
First Quarter 2024 |
|
Full Year 2024 |
||||||||||||
|
|
Low |
|
High |
|
Low |
|
High |
||||||||
Projected EPS (diluted) |
|
$ |
0.66 |
|
|
$ |
0.68 |
|
|
$ |
2.26 |
|
|
$ |
2.46 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Projected Company share of real estate depreciation and amortization1 |
|
|
1.20 |
|
|
|
1.20 |
|
|
|
4.88 |
|
|
|
4.88 |
|
Projected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments |
|
|
(0.14 |
) |
|
|
(0.14 |
) |
|
|
(0.14 |
) |
|
|
(0.14 |
) |
Projected FFO per share (diluted) |
|
$ |
1.72 |
|
|
$ |
1.74 |
|
|
$ |
7.00 |
|
|
$ |
7.20 |
|
1 Excludes estimated non-real estate related amortization of |
||||||||||||||||
BXP will host a conference call on Wednesday, January 31, 2024 at 10:00 AM Eastern Time, open to the general public, to discuss the fourth quarter and full year 2023 results, provide a business update, and discuss other business matters that may be of interest to investors. Participants who would like to join the call and ask a question may register at https://register.vevent.com/register/BI5e085f4df712444fa9623bfc3ed2c866 to receive the dial-in numbers and unique PIN to access the call. There will also be a live audio, listen-only webcast of the call, which may be accessed in the Investors section of BXP’s website at https://investors.bxp.com/events-webcasts. Shortly after the call, a replay of the call will be available on BXP’s website at https://investors.bxp.com/events-webcasts for up to twelve months following the call.
Additionally, a copy of BXP’s fourth quarter 2023 “Supplemental Operating and Financial Data” and this press release are available in the Investors section of BXP’s website at investors.bxp.com.
BXP (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will,” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond BXP’s control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to the impact of changes in general economic and capital market conditions, including continued inflation, increased interest rates, supply chain disruptions, labor market disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the
Financial tables follow.
BOSTON PROPERTIES, INC. |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited) |
|||||||
|
|||||||
|
December 31,
|
|
December 31,
|
||||
|
(in thousands, except for share and par value amounts) |
||||||
ASSETS |
|
|
|
||||
Real estate, at cost |
$ |
25,504,868 |
|
|
$ |
24,261,588 |
|
Construction in progress |
|
547,280 |
|
|
|
406,574 |
|
Land held for future development |
|
697,061 |
|
|
|
721,501 |
|
Right of use assets - finance leases |
|
401,680 |
|
|
|
237,510 |
|
Right of use assets - operating leases |
|
324,298 |
|
|
|
167,351 |
|
Less: accumulated depreciation |
|
(6,881,728 |
) |
|
|
(6,298,082 |
) |
Total real estate |
|
20,593,459 |
|
|
|
19,496,442 |
|
Cash and cash equivalents |
|
1,531,477 |
|
|
|
690,333 |
|
Cash held in escrows |
|
81,090 |
|
|
|
46,479 |
|
Investments in securities |
|
36,337 |
|
|
|
32,277 |
|
Tenant and other receivables, net |
|
122,407 |
|
|
|
81,389 |
|
Note receivable, net |
|
1,714 |
|
|
|
— |
|
Related party note receivable, net |
|
88,779 |
|
|
|
78,576 |
|
Sales-type lease receivable, net |
|
13,704 |
|
|
|
12,811 |
|
Accrued rental income, net |
|
1,355,212 |
|
|
|
1,276,580 |
|
Deferred charges, net |
|
760,421 |
|
|
|
733,282 |
|
Prepaid expenses and other assets |
|
64,230 |
|
|
|
43,589 |
|
Investments in unconsolidated joint ventures |
|
1,377,319 |
|
|
|
1,715,911 |
|
Total assets |
$ |
26,026,149 |
|
|
$ |
24,207,669 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
Liabilities: |
|
|
|
||||
Mortgage notes payable, net |
$ |
4,166,379 |
|
|
$ |
3,272,368 |
|
Unsecured senior notes, net |
|
10,491,617 |
|
|
|
10,237,968 |
|
Unsecured line of credit |
|
— |
|
|
|
— |
|
Unsecured term loan, net |
|
1,198,301 |
|
|
|
730,000 |
|
Lease liabilities - finance leases |
|
417,961 |
|
|
|
249,335 |
|
Lease liabilities - operating leases |
|
350,391 |
|
|
|
204,686 |
|
Accounts payable and accrued expenses |
|
458,329 |
|
|
|
417,545 |
|
Dividends and distributions payable |
|
171,176 |
|
|
|
170,643 |
|
Accrued interest payable |
|
133,684 |
|
|
|
103,774 |
|
Other liabilities |
|
445,947 |
|
|
|
450,918 |
|
Total liabilities |
|
17,833,785 |
|
|
|
15,837,237 |
|
|
|
|
|
||||
Commitments and contingencies |
|
— |
|
|
|
— |
|
Redeemable deferred stock units |
|
8,383 |
|
|
|
6,613 |
|
Equity: |
|
|
|
||||
Stockholders’ equity attributable to Boston Properties, Inc.: |
|
|
|
||||
Excess stock, |
|
— |
|
|
|
— |
|
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
1,569 |
|
|
|
1,568 |
|
Additional paid-in capital |
|
6,715,149 |
|
|
|
6,539,147 |
|
Dividends in excess of earnings |
|
(816,152 |
) |
|
|
(391,356 |
) |
Treasury common stock at cost, 78,900 shares at December 31, 2023 and December 31, 2022 |
|
(2,722 |
) |
|
|
(2,722 |
) |
Accumulated other comprehensive income (loss) |
|
(21,147 |
) |
|
|
(13,718 |
) |
Total stockholders’ equity attributable to Boston Properties, Inc. |
|
5,876,697 |
|
|
|
6,132,919 |
|
Noncontrolling interests: |
|
|
|
||||
Common units of the Operating Partnership |
|
666,580 |
|
|
|
683,583 |
|
Property partnerships |
|
1,640,704 |
|
|
|
1,547,317 |
|
Total equity |
|
8,183,981 |
|
|
|
8,363,819 |
|
Total liabilities and equity |
$ |
26,026,149 |
|
|
$ |
24,207,669 |
|
BOSTON PROPERTIES, INC. |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three months ended
|
|
Year ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
(in thousands, except for per share amounts) |
||||||||||||||
Revenue |
|
|
|
|
|
|
|
|
||||||||
Lease |
|
$ |
768,884 |
|
|
$ |
739,094 |
|
|
$ |
3,054,673 |
|
|
$ |
2,918,368 |
|
Parking and other |
|
|
31,497 |
|
|
|
26,991 |
|
|
|
112,918 |
|
|
|
107,225 |
|
Hotel |
|
|
11,803 |
|
|
|
11,087 |
|
|
|
47,357 |
|
|
|
39,482 |
|
Development and management services |
|
|
12,728 |
|
|
|
8,406 |
|
|
|
40,850 |
|
|
|
28,056 |
|
Direct reimbursements of payroll and related costs from management services contracts |
|
|
4,021 |
|
|
|
4,246 |
|
|
|
17,771 |
|
|
|
15,450 |
|
Total revenue |
|
|
828,933 |
|
|
|
789,824 |
|
|
|
3,273,569 |
|
|
|
3,108,581 |
|
Expenses |
|
|
|
|
|
|
|
|
||||||||
Operating |
|
|
|
|
|
|
|
|
||||||||
Rental |
|
|
301,411 |
|
|
|
282,265 |
|
|
|
1,183,947 |
|
|
|
1,108,070 |
|
Hotel |
|
|
8,373 |
|
|
|
7,646 |
|
|
|
32,225 |
|
|
|
27,478 |
|
General and administrative |
|
|
38,771 |
|
|
|
36,000 |
|
|
|
170,158 |
|
|
|
146,378 |
|
Payroll and related costs from management services contracts |
|
|
4,021 |
|
|
|
4,246 |
|
|
|
17,771 |
|
|
|
15,450 |
|
Transaction costs |
|
|
2,343 |
|
|
|
759 |
|
|
|
4,313 |
|
|
|
2,905 |
|
Depreciation and amortization |
|
|
212,067 |
|
|
|
198,330 |
|
|
|
830,813 |
|
|
|
749,775 |
|
Total expenses |
|
|
566,986 |
|
|
|
529,246 |
|
|
|
2,239,227 |
|
|
|
2,050,056 |
|
Other income (expense) |
|
|
|
|
|
|
|
|
||||||||
Income (loss) from unconsolidated joint ventures |
|
|
22,250 |
|
|
|
(58,451 |
) |
|
|
(239,543 |
) |
|
|
(59,840 |
) |
Gains on sales of real estate |
|
|
— |
|
|
|
55,726 |
|
|
|
517 |
|
|
|
437,019 |
|
Gain on sales-type lease |
|
|
— |
|
|
|
10,058 |
|
|
|
— |
|
|
|
10,058 |
|
Interest and other income (loss) |
|
|
20,965 |
|
|
|
5,789 |
|
|
|
69,964 |
|
|
|
11,940 |
|
Other income - assignment fee |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,624 |
|
Gains (losses) from investments in securities |
|
|
3,245 |
|
|
|
2,096 |
|
|
|
5,556 |
|
|
|
(6,453 |
) |
Losses from interest rate contracts |
|
|
(79 |
) |
|
|
— |
|
|
|
(79 |
) |
|
|
— |
|
Unrealized gain (loss) on non-real estate investment |
|
|
(93 |
) |
|
|
(150 |
) |
|
|
239 |
|
|
|
(150 |
) |
Interest expense |
|
|
(155,080 |
) |
|
|
(119,923 |
) |
|
|
(579,572 |
) |
|
|
(437,139 |
) |
Net income |
|
|
153,155 |
|
|
|
155,723 |
|
|
|
291,424 |
|
|
|
1,020,584 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
||||||||
Noncontrolling interests in property partnerships |
|
|
(19,324 |
) |
|
|
(19,961 |
) |
|
|
(78,661 |
) |
|
|
(74,857 |
) |
Noncontrolling interest—common units of the Operating Partnership |
|
|
(13,906 |
) |
|
|
(13,972 |
) |
|
|
(22,548 |
) |
|
|
(96,780 |
) |
Net income attributable to Boston Properties, Inc. |
|
$ |
119,925 |
|
|
$ |
121,790 |
|
|
$ |
190,215 |
|
|
$ |
848,947 |
|
Basic earnings per common share attributable to Boston Properties, Inc. |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
0.76 |
|
|
$ |
0.78 |
|
|
$ |
1.21 |
|
|
$ |
5.41 |
|
Weighted average number of common shares outstanding |
|
|
156,945 |
|
|
|
156,773 |
|
|
|
156,863 |
|
|
|
156,726 |
|
Diluted earnings per common share attributable to Boston Properties, Inc. |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
0.76 |
|
|
$ |
0.78 |
|
|
$ |
1.21 |
|
|
$ |
5.40 |
|
Weighted average number of common and common equivalent shares outstanding |
|
|
157,276 |
|
|
|
157,112 |
|
|
|
157,201 |
|
|
|
157,137 |
|
BOSTON PROPERTIES, INC. |
|||||||||||||||
FUNDS FROM OPERATIONS (1) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three months ended
|
|
Year ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
(in thousands, except for per share amounts) |
||||||||||||||
Net income attributable to Boston Properties, Inc. |
$ |
119,925 |
|
|
$ |
121,790 |
|
|
$ |
190,215 |
|
|
$ |
848,947 |
|
Add: |
|
|
|
|
|
|
|
||||||||
Noncontrolling interest - common units of the Operating Partnership |
|
13,906 |
|
|
|
13,972 |
|
|
|
22,548 |
|
|
|
96,780 |
|
Noncontrolling interests in property partnerships |
|
19,324 |
|
|
|
19,961 |
|
|
|
78,661 |
|
|
|
74,857 |
|
Net income |
|
153,155 |
|
|
|
155,723 |
|
|
|
291,424 |
|
|
|
1,020,584 |
|
Add: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense |
|
212,067 |
|
|
|
198,330 |
|
|
|
830,813 |
|
|
|
749,775 |
|
Noncontrolling interests in property partnerships’ share of depreciation and amortization |
|
(19,284 |
) |
|
|
(17,435 |
) |
|
|
(73,027 |
) |
|
|
(70,208 |
) |
Company’s share of depreciation and amortization from unconsolidated joint ventures |
|
24,132 |
|
|
|
24,626 |
|
|
|
101,199 |
|
|
|
89,275 |
|
Corporate-related depreciation and amortization |
|
(453 |
) |
|
|
(431 |
) |
|
|
(1,810 |
) |
|
|
(1,679 |
) |
Non-real estate related amortization |
|
(1,681 |
) |
|
|
— |
|
|
|
(1,681 |
) |
|
|
— |
|
Impairment losses included within loss from unconsolidated joint ventures |
|
— |
|
|
|
50,705 |
|
|
|
272,603 |
|
|
|
50,705 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Gains on sales of real estate |
|
— |
|
|
|
55,726 |
|
|
|
517 |
|
|
|
437,019 |
|
Gain on sales-type lease |
|
— |
|
|
|
10,058 |
|
|
|
— |
|
|
|
10,058 |
|
Gain on sale / consolidation included within income (loss) from unconsolidated joint ventures |
|
28,412 |
|
|
|
— |
|
|
|
28,412 |
|
|
|
— |
|
Gain on investment included within income (loss) from unconsolidated joint ventures |
|
— |
|
|
|
— |
|
|
|
35,756 |
|
|
|
— |
|
Gain on sales-type lease included within Income (loss) from unconsolidated joint ventures |
|
1,368 |
|
|
|
— |
|
|
|
1,368 |
|
|
|
— |
|
Unrealized gain (loss) on non-real estate investment |
|
(93 |
) |
|
|
(150 |
) |
|
|
239 |
|
|
|
(150 |
) |
Noncontrolling interests in property partnerships |
|
19,324 |
|
|
|
19,961 |
|
|
|
78,661 |
|
|
|
74,857 |
|
Funds from operations (FFO) attributable to the Operating Partnership (including Boston Properties, Inc.) |
|
318,925 |
|
|
|
325,923 |
|
|
|
1,274,568 |
|
|
|
1,316,668 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations |
|
32,722 |
|
|
|
32,983 |
|
|
|
130,771 |
|
|
|
133,115 |
|
Funds from operations attributable to Boston Properties, Inc. |
$ |
286,203 |
|
|
$ |
292,940 |
|
|
$ |
1,143,797 |
|
|
$ |
1,183,553 |
|
Boston Properties, Inc.’s percentage share of funds from operations - basic |
|
89.74 |
% |
|
|
89.88 |
% |
|
|
89.74 |
% |
|
|
89.89 |
% |
Weighted average shares outstanding - basic |
|
156,945 |
|
|
|
156,773 |
|
|
|
156,863 |
|
|
|
156,726 |
|
FFO per share basic |
$ |
1.82 |
|
|
$ |
1.87 |
|
|
$ |
7.29 |
|
|
$ |
7.55 |
|
Weighted average shares outstanding - diluted |
|
157,276 |
|
|
|
157,112 |
|
|
|
157,201 |
|
|
|
157,137 |
|
FFO per share diluted |
$ |
1.82 |
|
|
$ |
1.86 |
|
|
$ |
7.28 |
|
|
$ |
7.53 |
|
| (1) | Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. (computed in accordance with GAAP) for gains (or losses) from sales of properties, including a change in control, impairment losses on depreciable real estate consolidated on our balance sheet, impairment losses on our investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and real estate-related depreciation and amortization. FFO is a non-GAAP financial measure, but we believe the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures for understanding and comparing our operating results because, by excluding gains and losses related to sales or a change in control of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies. |
|
Our calculation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently. |
||
In order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to Boston Properties, Inc. as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to Boston Properties, Inc. (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP. |
BOSTON PROPERTIES, INC. |
|||||||
PORTFOLIO LEASING PERCENTAGES |
|||||||
|
% Occupied by Location (1) |
|
% Leased by Location (2) |
||||
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
|
89.9 % |
|
90.2 % |
|
90.3 % |
|
92.7 % |
|
85.9 % |
|
88.3 % |
|
88.1 % |
|
88.6 % |
|
90.1 % |
|
86.8 % |
|
92.4 % |
|
90.9 % |
|
84.9 % |
|
88.5 % |
|
85.5 % |
|
88.8 % |
|
81.8 % |
|
88.3 % |
|
83.1 % |
|
90.9 % |
|
88.0 % |
|
88.7 % |
|
91.0 % |
|
93.0 % |
Total Portfolio |
88.4 % |
|
88.6 % |
|
89.9 % |
|
91.5 % |
| (1) | Represents signed leases for which revenue recognition has commenced in accordance with GAAP. |
|
| (2) | Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240130403667/en/
AT BXP
Michael LaBelle
Executive Vice President,
Chief Financial Officer and Treasurer
mlabelle@bxp.com
Helen Han
Vice President, Investor Relations
hhan@bxp.com
Source: BXP
FAQ
What is the ticker symbol for Boston Properties, Inc.?
What was the revenue for Q4 of 2023?
What was the net income for Q4 of 2023?
How many square feet of leases were executed in Q4 of 2023?
What is the guidance for Q1 2024 EPS and FFO?
