DOW JONES NEWSWIRES
Boston Properties Inc.'s (BXP) first-quarter profit jumped 58% though a key profitability metric remained flat despite higher rental revenue.
The real estate investment trust, which also manages and develops hotel and industrial properties, projected current-quarter funds from operations between $1.23 and $1.25 a share, above analysts' average estimate of $1.22 a share, according to Thomson Reuters.
Boston Properties has posted stronger earnings in recent quarters as its existing assets generate more revenue. The company's properties -- found in places like midtown Manhattan, Boston and Washington, D.C. -- didn't suffer as much housing downturn as other those in other areas and have been among the quickest to recover.
The REIT in February revealed its chief operating officer would resign at the end of the month, allowing the office landlord's president to fill his post. The change lead to a charge in the first quarter, though other one-time items helped offset the negative accounting impact of the departure.
Boston Properties posted a profit of $64.6 million, or 43 cents a share, up from $40.8 million, or 29 cents a share, a year earlier. FFO -- a key profitability metric among REITs -- were flat at $1.12 a share. In January, the company projected FFO between $1.12 and $1.14 a share.
Total revenue rose 7.3% to $447.7 million, while rental revenue increased 7.2% to $432.7 million. Analysts surveyed by Thomson Reuters most recently expected $419 million of revenue from rent.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com