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Boston Properties Inc BXP

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Boston Properties Delivers Good Q3 Results and Provides Encouraging Full-Year 2022 Guidance

Kevin Brown Equity Analyst

Analyst Note

| Kevin Brown |

No-moat-rated Boston Properties delivered good third-quarter results, reporting funds from operations of $1.73 per share, 10.2% higher than the $1.57 in FFO during the third quarter of 2020. The FFO in the third quarter was slightly higher than the midpoint of the company's guidance primarily due to better-than-projected results from the company’s in-service portfolio and improved parking revenue. The company also provided encouraging guidance for full-year 2022, with projected FFO of $7.25-$7.45 per diluted share, which is 13% higher at the midpoint than the midpoint of 2021 guidance. Management anticipates incremental growth of $0.43 coming from development and acquisitions, $0.25 from the same property portfolio, and $0.32 from lower interest expense. This is offset by $0.06 of dilution from 2021 disposition activity, $0.06 of lower termination income, and $0.04 of higher general and administrative expenses. After incorporating the third-quarter results, we are maintaining our $118 fair value estimate for Boston Properties.

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Company Profile

Business Description

Boston Properties owns over 180 properties consisting of approximately 47 million rentable square feet of space. The portfolio is dominated by office buildings and is spread across major cities such as New York, Boston, San Francisco, and the Washington, D.C., region, along with a newly established presence in Los Angeles. The real estate investment trust also owns limited retail, hotel, and residential properties.

Contact
800 Boylston Street, Suite 1900, Prudential Center
Boston, MA, 02199-8103
T +1 617 236-3300
Sector Real Estate
Industry REIT - Office
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 750

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