DOW JONES NEWSWIRES
Boston Properties Inc. (BXP) swung to a fourth-quarter loss, and the office-property owner saw a key measure of profitability decline because of one-time charges.
The company also forecast current-quarter funds from operations ranging from $1.06 to $1.08 a share and earnings of 26 cents to 28 cents. Analysts surveyed by Thomson Reuters expect FFO of $1.08.
The real-estate investment trust, which also manages and develops hotel and industrial properties, has assets in places like Midtown Manhattan, Boston and Washington, D.C. Boston Properties has seen stable leasing rates and rents of late. In December, Standard & Poors Ratings Services boosted its outlook on the company, saying it thought U.S. office rents and occupancies were nearing their worst and that Boston Properties's results are likely to gradually improve.
Boston Properties reported a fourth-quarter loss of $12.9 million, or 9 cents a share, from a profit of $53.3 million, or 38 cents, a year earlier. FFO--a key gauge of profitability among REITs--fell to 64 cents from $1.04. FFO in the most recent quarter included 50 cents of charges related to items such as early debt extinguishment, while the year-earlier quarter's FFO included 4 cents of write-downs.
The company had projected earnings of 34 cents to 37 cents and FFO of $1.09 to $1.12, better than analysts' expectations at the time. Revenue rose 4.3% to $392.5 million.
Analysts polled by Thomson Reuters had most recently forecast $377 million in revenue.
Shares closed at $91.26 and were inactive after hours. As of the close, the stock had risen 40% the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; email@example.com