Executes 1.1 Million SF of Leases in Q4 for
a Total of 5.7 Million SF Leased in 2022
BXP (NYSE: BXP), the largest publicly traded developer,
owner, and manager of premier workplaces in the United States,
reported results today for the fourth quarter and full year ended
December 31, 2022.
Financial highlights for the fourth quarter include:
- Revenue increased 8.0% to $789.8 million for the quarter ended
December 31, 2022, as compared to $731.1 million for the quarter
ended December 31, 2021.
- Net income attributable to common shareholders of $121.8
million, or $0.78 per diluted share (EPS), for the quarter ended
December 31, 2022, compared to $184.5 million, or $1.18 per diluted
share, for the quarter ended December 31, 2021.
- Funds from Operations (FFO) of $292.9 million, or $1.86 per
diluted share, for the quarter ended December 31, 2022, compared to
FFO of $243.0 million, or $1.55 per diluted share, for the quarter
ended December 31, 2021.
- EPS for the fourth quarter fell short of the mid-point of BXP’s
guidance by $0.16 primarily due to a $0.29 per diluted share
non-cash impairment charge related to BXP’s investment in Dock 72
in Brooklyn, New York, in which BXP has a 50% interest.
- FFO per diluted share exceeded the mid-point of BXP’s guidance
by $0.01 due to portfolio outperformance.
BXP also provided updated guidance for first quarter 2023 EPS of
$0.52 - $0.54 and FFO of $1.66 - $1.68 per diluted share, and full
year 2023 EPS of $2.36 - $2.46 and FFO of $7.08 - $7.18 per diluted
share.
The mid-point of the updated guidance for full year 2023 EPS is
projected to be $0.07 per share greater than the guidance provided
on October 25, 2022, primarily due to decreased depreciation and
amortization expense. The mid-point of the updated guidance for
full year 2023 FFO per diluted share is projected to be $0.09 per
share lower on a net basis than the guidance provided on October
25, 2022.
The items that positively impact BXP’s updated 2023 guidance
range include:
- Greater projected contributions from acquisitions and
development activities;
- Lower net interest expense from greater earnings on cash
balances and greater capitalized interest; and
- Additional projected development and management services
income.
These three items aggregate $0.06 per share of greater EPS and
FFO per diluted share than in BXP’s October 25, 2022 guidance for
full year 2023.
This is offset by $0.15 per share of lower projected EPS and FFO
per diluted share, which was not originally included in BXP’s
October 25, 2022 full year 2023 guidance, as a result of:
- the closure and demolition of a 1,132 space parking facility to
allow for the commencement of development of 290 Binney Street in
Cambridge, Massachusetts, which is 100% pre-leased to AstraZeneca
and
- the incremental net interest expense associated with BXP’s
operating partnership’s -Boston Properties Limited Partnership
(“BPLP”) $750 million senior unsecured notes offering, which closed
on November 7, 2022.
See “EPS and FFO per Share Guidance” below.
Fourth quarter and recent business highlights include:
- Executed approximately 1.1 million square feet of leases having
a weighted-average lease term of 7.8 years.
- Fully placed in-service two projects:
- Reston Next, a premier workplace project consisting of two
buildings totaling approximately 1.1 million square feet, located
in Reston, Virginia. Including leases that have not yet commenced,
this project is 90% leased.
- 880 Winter Street, an approximately 244,000 square foot
laboratory/life sciences project located in Waltham, Massachusetts.
Including leases that have not yet commenced, this project is
currently 97% leased.
BXP’s occupancy declined by 30 basis points in the fourth
quarter of 2022 to 88.6%, primarily due to fully placing in-service
Reston Next and 880 Winter Street, which have leases for which
revenue recognition has not commenced in accordance with GAAP.
Excluding the impact of placing these two properties in-service,
occupancy would have increased in the fourth quarter of 2022 by 20
basis points to 89.1%.
- Commenced the redevelopment of 105 Carnegie Center, located in
Princeton, New Jersey. 105 Carnegie Center is currently a 70,000
square foot property that will be redeveloped into an approximately
73,000 square foot laboratory/life sciences space.
- Completed the acquisition of an approximate 27% interest in the
joint venture that owns 200 Fifth Avenue for a gross purchase price
of approximately $280.1 million, which includes $120.1 million of
cash and BXP’s pro rata share of the outstanding loan secured by
the property of $160.0 million. 200 Fifth Avenue is a 14-story,
approximately 855,000 square-foot, LEED Gold certified, premier
workplace located in the Midtown South submarket of Manhattan, New
York that is approximately 93% leased. BXP serves as the managing
member and provides customary leasing and property management
services for the joint venture.
- Completed the disposition of the residential component of The
Avant at Reston Town Center, located in Reston, Virginia, for a
gross sale price of $141.0 million. Net cash proceeds totaled
approximately $139.6 million, resulting in a gain on sale of real
estate of approximately $55.6 million. The Avant is a 15-story,
approximately 329,000 square foot, 359-unit, luxury multifamily
building. BXP retained ownership of the approximately 26,000 square
foot ground-level retail space.
- BPLP completed a green bond offering of $750.0 million of
6.750% unsecured senior notes due December 2027. The aggregate net
proceeds from the offering were approximately $743.5 million after
deducting underwriting discounts and transaction expenses.
- On January 4, 2023, BPLP closed on a $1.2 billion unsecured
term loan facility that matures in May 2024, with one, twelve-month
extension option subject to the satisfaction of customary
conditions. As of January 4, 2023, the term loan bore interest at a
variable rate equal to adjusted Term SOFR plus 0.85% per annum. A
portion of the proceeds were used to repay in full BPLP’s $730.0
million term loan that was scheduled to mature in May 2023,
resulting in incremental proceeds of approximately $466.0
million.
- In January 2023, BXP commenced the development of 290 Binney
Street, an approximately 570,000 net rentable square foot
laboratory/life sciences project in Cambridge, Massachusetts.
Concurrently with the commencement of this project, BXP removed
from service and began demolition of the existing Kendall Center
Blue Parking Garage to support the development of this project. 290
Binney Street is 100% pre-leased to AstraZeneca.
- Earned national recognition as an industry leader and furthered
BXP’s commitments to ESG and sustainability performance:
- Awarded Nareit’s 2022 Leader in the Light Award in the office
property sector. This award is the highest achievement for Office
REITs and acknowledges BXP’s leadership in demonstrating
outstanding sustainability practices throughout the year.
- Named to Newsweek’s list of America’s Most Responsible
Companies for 2023. BXP ranked first in the Real Estate &
Housing industry with an increased ranking of 29th overall out of
the 500 companies included and had the third highest environmental
score.
- Named to the Dow Jones Sustainability Index (DJSI) North
America for 2022, its second consecutive year in the highly
selective index. BXP was one of eight real estate companies that
qualified.
Financial highlights for the year ended December 31, 2022
include:
- Net income attributable to common shareholders of $848.9
million, or $5.40 per diluted share (EPS) for the year ended
December 31, 2022, compared to $496.2 million, or $3.17 per diluted
share, for the year ended December 31, 2021.
- Funds from Operations (FFO) of $1.2 billion, or $7.53 per
diluted share for the year ended December 31, 2022, compared to FFO
of $1.0 billion , or $6.56 per diluted share, for the year ended
December 31, 2021.
Full year 2022 business highlights include:
- Executed a total of approximately 5.7 million square feet of
leases. Notables leases include:
- An approximately 570,000 rentable square foot lease with
AstraZeneca to lease the first phase of a life sciences development
at 290 Binney Street in Cambridge, Massachusetts.
- An approximately 330,000 square foot renewal and expansion with
a financial services firm at 601 Lexington Avenue in New York City,
NY.
- An approximately 225,000 square foot lease with the Broad
Institute for the planned office-to-lab conversion at 300 Binney
Street located in Cambridge, Massachusetts.
- Fully placed in-service three development projects and
commenced development and redevelopment of seven projects. In
addition to the projects highlighted for the fourth quarter above,
these projects include:
- Completed and fully placed in-service 325 Main Street, a
premier workplace with approximately 414,000 square feet of office
and retail space located in Cambridge, Massachusetts. The office
component, comprising approximately 380,000 square feet, is 100%
leased.
- Commenced redevelopment of 651 Gateway in South San Francisco,
California. 651 Gateway is an office building that is being
converted to an approximately 327,000 net rentable square foot life
sciences space. This property is owned by a joint venture in which
BXP has a 50% interest.
- Commenced development of the first phase of Platform 16 in San
Jose, California. Platform 16 is a premier workplace project that,
after completion of all phases, is expected to be approximately 1.1
million square feet. The first phase is approximately 390,000 net
rentable square feet. This property is owned by a joint venture in
which BXP has a 55% interest.
- Commenced two development projects within Reston Town Center in
Reston, Virginia:
- A luxury residential property that is expected to consist of
508 units across a five-story low-rise building and an iconic
39-story tower, which will be one of the tallest buildings in
Northern Virginia. The residential property is owned by a newly
formed joint venture with an institutional partner in which BXP has
a 20% interest. The joint venture obtained a $140.0 million
construction loan that bears interest at a variable rate equal to
SOFR plus 2.00% per annum and matures on May 13, 2026, with two,
one-year extension options, subject to certain conditions.
- Adjacent to the residential property, a premier workplace and
retail project that, when completed, will consist of approximately
90,000 square feet of boutique commercial space with highly
efficient floor plates.
- Commenced redevelopment of 140 Kendrick Street - Building A in
Needham, Massachusetts. When completed, the property will consist
of approximately 104,000 square feet and will be the first Net
Zero, Carbon Neutral office repositioning of this scale in
Massachusetts. This property is 100% pre-leased.
- Commenced redevelopment of 760 Boylston Street at the
Prudential Center located in Boston, Massachusetts. The
redevelopment is a modernization of the space consisting of
approximately 118,000 rentable square feet. This property is 100%
pre-leased.
- Including the sale of the residential component of The Avant at
Reston Town Center highlighted in the fourth quarter above,
completed the disposition of 15 properties, for a gross aggregate
sale price of $864.2 million. The other dispositions included:
- 195 West Street, an approximately 63,500 square foot office
building in Waltham, Massachusetts for a gross sales price of $37.7
million and net proceeds of $35.4 million. BXP recognized a gain on
sale of approximately $22.7 million.
- A portfolio of eleven suburban office properties aggregating
approximately 733,000 square feet, located in Springfield,
Virginia, for an aggregate gross sales price of $127.5 million. Net
cash proceeds totaled approximately $121.9 million, and BXP
recognized a gain on sale of real estate totaling approximately
$96.2 million.
- 601 Massachusetts Avenue located in Washington, DC for a gross
sale price of $531.0 million. Net cash proceeds totaled
approximately $512.3 million resulting in a gain on sale of real
estate totaling approximately $237.4 million. 601 Massachusetts
Avenue is an 11-story, approximately 479,000 square foot premier
workplace originally developed by BXP in 2013 and currently 98%
leased. BXP continues to provide property management services to
the new owner.
- Land parcels located in Loudoun County, Virginia for a gross
sale price of $27.0 million. Net cash proceeds totaled
approximately $25.6 million resulting in a gain on sale of real
estate totaling approximately $24.4 million.
- Including the purchase of a 27% interest in 200 Fifth Avenue
highlighted in the fourth quarter above, completed the acquisition
of three premier workplaces for a gross aggregate purchase price of
$1.6 billion. The other acquisitions include:
- 125 Broadway, a six-story, 271,000 square foot laboratory/life
sciences premier workplace that is 100% leased in the heart of
Kendall Square in Cambridge, Massachusetts, further expanding BXP’s
life sciences portfolio in what is considered to be the largest and
most important cluster of life sciences companies and research
space in the United States. This property was acquired for a
purchase price, including transaction costs, of approximately
$592.4 million.
- Madison Centre, an approximately 755,000 square foot, 37-story,
LEED-Platinum certified, premier workplace in Seattle, Washington
that is 93% leased. The property was acquired for a gross purchase
price of approximately $730.0 million.
- In June 2022, celebrated the 25th Anniversary of BXP’s listing
on the New York Stock Exchange. Representatives from BXP across the
U.S. rang the closing bell on June 24th in recognition of this
milestone.
- Earned a top ESG rating in the 2022 GRESB® assessment. BXP
earned its 11th consecutive “Green Star” recognition and the
highest GRESB 5-star rating, as well as an “A” disclosure score.
BXP also achieved the highest scores in several categories,
including Data Monitoring & Review, Targets, Policies,
Reporting, and Leadership.
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, 2022. 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 2023 and full year 2023 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 2023
Full Year 2023
Low
High
Low
High
Projected EPS (diluted)
$
0.52
$
0.54
$
2.36
$
2.46
Add:
Projected Company share of real estate
depreciation and amortization
1.14
1.14
4.72
4.72
Projected FFO per share (diluted)
$
1.66
$
1.68
$
7.08
$
7.18
BXP will host a conference call on Wednesday, February 1, 2023
at 10:00 AM Eastern Time, open to the general public, to discuss
the fourth quarter and full year 2022 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/BId05af3319e564ec8be027c89ab07667a
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 2022 “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 the United States,
concentrated in six dynamic gateway markets - Boston, Los Angeles,
New York, San Francisco, Seattle, and Washington, DC. BXP has
delivered places that power progress for our clients and
communities for more than 50 years. BXP is a fully integrated real
estate company, organized as a real estate investment trust (REIT).
Including properties owned by unconsolidated joint ventures, BXP’s
portfolio totals 54.1 million square feet and 194 properties,
including 13 properties under construction/redevelopment. For more
information about BXP, please visit our website or follow us on
LinkedIn or Instagram.
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, increasing
interest rates, supply chain disruptions, labor market disruptions,
dislocation and volatility in capital markets, job losses and
potential longer-term changes in consumer and client behavior
resulting from the severity and duration of any downturn in the
U.S. or global economy, the impact of geopolitical conflicts,
including the ongoing war in Ukraine, the impact of the COVID-19
global pandemic on our and our clients’ financial condition,
results of operations and cash flows (including the impact of
actions taken to contain the pandemic or mitigate its impact, the
direct and indirect economic effects of the pandemic and
containment measures on our clients, and the ability of our clients
to successfully operate their businesses); the impact of possible
future health crises, BXP’s ability to enter into new leases or
renew leases on favorable terms, dependence on clients’ financial
condition, the uncertainties of real estate development,
acquisition and disposition activity, the ability to effectively
integrate acquisitions, the uncertainties of investing in new
markets, the costs and availability of financing, the effectiveness
of our interest rate hedging contracts, the ability of our joint
venture partners to satisfy their obligations, the effects of
local, national and international economic and market conditions,
the effects of acquisitions, dispositions and possible impairment
charges on our operating results, the impact of newly adopted
accounting principles on BXP’s accounting policies and on
period-to-period comparisons of financial results, the
uncertainties of costs to comply with regulatory changes (including
potential costs to comply with the Securities and Exchange
Commission’s proposed rules to standardize climate-related
disclosures) and other risks and uncertainties detailed from time
to time in BXP’s filings with the SEC. These forward-looking
statements speak only as of the date of issuance of this report and
are not guarantees of future results, performance, or achievements.
BXP does not undertake a duty to update or revise any
forward-looking statement whether as a result of new information,
future events or otherwise, except as otherwise required by
law.
Financial tables follow.
BOSTON PROPERTIES,
INC.
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
December 31,
2022
December 31,
2021
(in thousands, except for
share and par value amounts)
ASSETS
Real estate, at cost
$
24,261,588
$
22,298,103
Construction in progress
406,574
894,172
Land held for future development
721,501
560,355
Right of use assets - finance leases
237,510
237,507
Right of use assets - operating leases
167,351
169,778
Less: accumulated depreciation
(6,298,082
)
(5,883,961
)
Total real estate
19,496,442
18,275,954
Cash and cash equivalents
690,333
452,692
Cash held in escrows
46,479
48,466
Investments in securities
32,277
43,632
Tenant and other receivables, net
81,389
70,186
Related party note receivable, net
78,576
78,336
Note receivables, net
—
9,641
Sales-type lease receivable, net
12,811
—
Accrued rental income, net
1,276,580
1,226,745
Deferred charges, net
733,282
618,798
Prepaid expenses and other assets
43,589
57,811
Investments in unconsolidated joint
ventures
1,715,911
1,482,997
Total assets
$
24,207,669
$
22,365,258
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net
$
3,272,368
$
3,267,914
Unsecured senior notes, net
10,237,968
9,483,695
Unsecured line of credit
—
145,000
Unsecured term loan, net
730,000
—
Lease liabilities - finance leases
249,335
244,421
Lease liabilities - operating leases
204,686
204,561
Accounts payable and accrued expenses
417,545
320,775
Dividends and distributions payable
170,643
169,859
Accrued interest payable
103,774
94,796
Other liabilities
450,918
391,441
Total liabilities
15,837,237
14,322,462
Commitments and contingencies
—
—
Redeemable deferred stock units
6,613
9,568
Equity:
Stockholders’ equity attributable to
Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000
shares authorized, none issued or outstanding
—
—
Preferred stock, $0.01 par value,
50,000,000 shares authorized; none issued or outstanding
—
—
Common stock, $0.01 par value, 250,000,000
shares authorized, 156,836,767 and 156,623,749 issued and
156,757,867 and 156,544,849 outstanding at December 31, 2022 and
December 31, 2021, respectively
1,568
1,565
Additional paid-in capital
6,539,147
6,497,730
Dividends in excess of earnings
(391,356
)
(625,891
)
Treasury common stock at cost, 78,900
shares at December 31, 2022 and December 31, 2021
(2,722
)
(2,722
)
Accumulated other comprehensive loss
(13,718
)
(36,662
)
Total stockholders’ equity attributable to
Boston Properties, Inc.
6,132,919
5,834,020
Noncontrolling interests:
Common units of the Operating
Partnership
683,583
642,655
Property partnerships
1,547,317
1,556,553
Total equity
8,363,819
8,033,228
Total liabilities and equity
$
24,207,669
$
22,365,258
BOSTON PROPERTIES,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three months ended
December 31,
Year ended December
31,
2022
2021
2022
2021
(in thousands, except for per
share amounts)
Revenue
Lease
$
739,094
$
690,912
$
2,918,368
$
2,753,014
Parking and other
26,991
23,087
107,225
81,814
Hotel revenue
11,087
6,227
39,482
13,609
Development and management services
8,406
7,516
28,056
27,697
Direct reimbursements of payroll and
related costs from management services contracts
4,246
3,321
15,450
12,487
Total revenue
789,824
731,063
3,108,581
2,888,621
Expenses
Operating
Rental
282,265
256,778
1,108,070
1,021,151
Hotel
7,646
5,005
27,478
12,998
General and administrative
36,000
33,649
146,378
151,573
Payroll and related costs from management
services contracts
4,246
3,321
15,450
12,487
Transaction costs
759
2,066
2,905
5,036
Depreciation and amortization
198,330
177,521
749,775
717,336
Total expenses
529,246
478,340
2,050,056
1,920,581
Other income (expense)
Loss from unconsolidated joint
ventures
(58,451
)
(825
)
(59,840
)
(2,570
)
Gains on sales of real estate
55,726
115,556
437,019
123,660
Gain on sales-type lease
10,058
—
10,058
—
Interest and other income (loss)
5,789
1,564
11,940
5,704
Other income - assignment fee
—
—
6,624
—
Gains (losses) from investments in
securities
2,096
1,882
(6,453
)
5,626
Unrealized loss on non-real estate
investment
(150
)
—
(150
)
—
Losses from early extinguishment of
debt
—
(44,284
)
—
(45,182
)
Interest expense
(119,923
)
(103,331
)
(437,139
)
(423,346
)
Net income
155,723
223,285
1,020,584
631,932
Net income attributable to noncontrolling
interests
Noncontrolling interests in property
partnerships
(19,961
)
(18,204
)
(74,857
)
(70,806
)
Noncontrolling interest—common units of
the Operating Partnership
(13,972
)
(20,544
)
(96,780
)
(55,931
)
Net income attributable to Boston
Properties, Inc.
121,790
184,537
848,947
505,195
Preferred dividends
—
—
—
(2,560
)
Preferred stock redemption charge
—
—
—
(6,412
)
Net income attributable to Boston
Properties, Inc. common shareholders
$
121,790
$
184,537
$
848,947
$
496,223
Basic earnings per common share
attributable to Boston Properties, Inc. common shareholders:
Net income
$
0.78
$
1.18
$
5.41
$
3.18
Weighted average number of common shares
outstanding
156,773
156,297
156,726
156,116
Diluted earnings per common share
attributable to Boston Properties, Inc. common shareholders:
Net income
$
0.78
$
1.18
$
5.40
$
3.17
Weighted average number of common and
common equivalent shares outstanding
157,112
156,654
157,137
156,376
BOSTON PROPERTIES,
INC.
FUNDS FROM OPERATIONS
(1)
(Unaudited)
Three months ended
December 31,
Year ended December
31,
2022
2021
2022
2021
(in thousands, except for per
share amounts)
Net income attributable to Boston
Properties, Inc. common shareholders
$
121,790
$
184,537
$
848,947
$
496,223
Add:
Preferred stock redemption charge
—
—
—
6,412
Preferred dividends
—
—
—
2,560
Noncontrolling interest - common units of
the Operating Partnership
13,972
20,544
96,780
55,931
Noncontrolling interests in property
partnerships
19,961
18,204
74,857
70,806
Net income
155,723
223,285
1,020,584
631,932
Add:
Depreciation and amortization expense
198,330
177,521
749,775
717,336
Noncontrolling interests in property
partnerships’ share of depreciation and amortization
(17,435
)
(17,482
)
(70,208
)
(67,825
)
Company’s share of depreciation and
amortization from unconsolidated joint ventures
24,626
20,401
89,275
71,966
Corporate-related depreciation and
amortization
(431
)
(426
)
(1,679
)
(1,753
)
Impairment loss included within loss from
unconsolidated joint ventures
50,705
—
50,705
—
Less:
Gains on sale of investment included
within loss from unconsolidated joint ventures
—
—
—
10,257
Gains on sales of real estate
55,726
115,556
437,019
123,660
Gain on sales-type lease
10,058
—
10,058
—
Unrealized loss on non-real estate
investment
(150
)
—
(150
)
—
Noncontrolling interests in property
partnerships
19,961
18,204
74,857
70,806
Preferred dividends
—
—
—
2,560
Preferred stock redemption charge
—
—
—
6,412
Funds from operations (FFO) attributable
to the Operating Partnership common unitholders (including Boston
Properties, Inc.)
325,923
269,539
1,316,668
1,137,961
Less:
Noncontrolling interest - common units of
the Operating Partnership’s share of funds from operations
32,983
26,576
133,115
111,975
Funds from operations attributable to
Boston Properties, Inc. common shareholders
$
292,940
$
242,963
$
1,183,553
$
1,025,986
Boston Properties, Inc.’s percentage share
of funds from operations - basic
89.88
%
90.14
%
89.89
%
90.16
%
Weighted average shares outstanding -
basic
156,773
156,297
156,726
156,116
FFO per share basic
$
1.87
$
1.55
$
7.55
$
6.57
Weighted average shares outstanding -
diluted
157,112
156,654
157,137
156,376
FFO per share diluted
$
1.86
$
1.55
$
7.53
$
6.56
(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.
common shareholders (computed in accordance with GAAP) for gains
(or losses) from sales of properties, 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 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. common shareholders 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.
common shareholders (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
% Leased by Location
December 31, 2022
December 31, 2021
Boston
90.2 %
91.4 %
Los Angeles
88.3 %
88.8 %
New York
86.8 %
87.6 %
San Francisco
88.5 %
87.3 %
Seattle
88.3 %
90.9 %
Washington, DC
88.7 %
87.2 %
Total Portfolio
88.6 %
88.8 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230131006159/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
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