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
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 ended December 31,
2023.
Financial highlights for the fourth quarter include:
- Revenue increased 5.0% to $828.9 million for the quarter ended
December 31, 2023, compared to $789.8 million for the quarter ended
December 31, 2022.
- Net income attributable to Boston Properties, Inc. of $119.9
million, or $0.76 per diluted share (EPS), for the quarter ended
December 31, 2023, compared to $121.8 million, or $0.78 per diluted
share, for the quarter ended December 31, 2022.
- EPS exceeded the mid-point of BXP’s guidance by $0.15 per
diluted share primarily due to:
- better-than-projected income from unconsolidated joint
ventures, largely from recording a gain upon consolidation of Santa
Monica Business Park of $0.17 per diluted share following BXP’s
acquisition of its partner’s 45% interest in the asset, and
- better-than-projected interest income and development and
management services income aggregating $0.02 per diluted
share;
- offset by higher-than-projected depreciation expense of $0.04
per diluted share.
- Funds from Operations (FFO) of $286.2 million, or $1.82 per
diluted share, for the quarter ended December 31, 2023, compared to
FFO of $292.9 million, or $1.86 per diluted share, for the quarter
ended December 31, 2022.
- FFO per diluted share exceeded the mid-point of BXP’s guidance
by $0.02 per diluted share, primarily due to better-than-projected
interest income and development and management services
income.
BXP also provided guidance for first quarter 2024 EPS of $0.66 -
$0.68 and FFO of $1.72 - $1.74 per diluted share, and full year
2024 EPS of $2.26 - $2.46 and FFO of $7.00 - $7.20 per diluted
share.
The mid-point of guidance for 2024 EPS is projected to be 95%
higher than full year 2023 EPS primarily due to:
- 2023 non-cash impairment charges of $1.56 per diluted share
offset by $0.23 per diluted share of gains related to BXP’s
investments in its unconsolidated joint ventures that are not
projected to reoccur in 2024
The mid-point of guidance for 2024 FFO per diluted share is
projected to be 2.5% lower than full year 2023 FFO per diluted
share primarily due to:
- higher net interest expense of $0.31 per diluted share,
- lower contributions from same property portfolio performance of
$0.26 per diluted share, and
- reduced fee and termination income of $0.14 per diluted
share;
- offset by an estimated $0.42 per diluted share of projected
contributions from our acquisition and disposition activity and
development deliveries.
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 in Cambridge, Massachusetts, to
Norges Bank Investment Management (“NBIM”) at a gross valuation of
approximately $1.66 billion or $2,050 per square foot. The
properties total approximately 810,000 square feet and each is 100%
pre-leased. BXP will retain a 55% ownership interest in each joint
venture and will provide development, property management, and
leasing services for the ventures. NBIM funded approximately $212.9
million at closing for its investment in 300 Binney Street and,
upon closing of its investment in 290 Binney Street, NBIM’s
investment will reduce BXP’s estimated future development spend
over time by approximately $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, requires interest-only
payments at Daily Compounded SOFR plus a 2.25% per annum until
maturity. Subsequently, BPLP entered into interest rate swap
contracts with notional amounts aggregating $600.0 million to fix
Daily Compounded SOFR at a weighted-average fixed interest rate of
3.7925% for the period commencing on December 15, 2023 and ending
on October 26, 2028 for an all in rate of 6.04% per annum. BXP
intends to use the net proceeds from this financing and available
cash to repay the $700 million senior unsecured notes due February
1, 2024.
- Completed the acquisition of its joint venture partner’s 45%
ownership interest in Santa Monica Business Park located in Santa
Monica, California for a purchase price of $38.0 million. BXP also
assumed the partner’s share of the joint venture’s cash and working
capital aggregating approximately $20.0 million, as well as the
partner’s share of the outstanding $300.0 million mortgage debt.
Subsequent to closing, BXP extended the approximately 467,000
square foot lease with anchor client, Snap Inc., through 2036.
Santa Monica Business Park is a 47-acre office park consisting of
21 buildings totaling approximately 1.2 million net rentable square
feet. Approximately 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
in New York City, New York for a purchase price of $1, increasing
BXP’s ownership interest in the asset to approximately 71%. BXP
also assumed the partner’s share of the joint venture’s cash and
working capital aggregating approximately $25.4 million, as well as
the partner’s share of the outstanding $220.0 million mortgage
debt. 360 Park Avenue South, a 20-story, approximately 450,000
square foot premier workplace, is currently under
re-development.
- On January 8, 2024, BXP completed the acquisition of its joint
venture partner’s 50% economic ownership interest in 901 New York
Avenue located in Washington, DC for a purchase price of $10.0
million. BXP also assumed the partner’s share of the outstanding
approximately $207.1 million mortgage debt, which bears interest at
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 of 5.0% 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, or $1.21 per diluted share (EPS) for the year ended
December 31, 2023, compared to $848.9 million, or $5.40 per diluted
share, for the year ended December 31, 2022. The year-over-year
decrease is primarily due to:
- a 2023 non-cash impairment charge of $272.6 million related to
BXP’s investments in four of its unconsolidated joint ventures,
and
- gains on sales of real estate of $436.5 million in 2022 that
did not reoccur in 2023.
- Funds from Operations (FFO) of $1.1 billion, or $7.28 per
diluted share for the year ended December 31, 2023, compared to FFO
of $1.2 billion, or $7.53 per diluted share, for the year ended
December 31, 2022.
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 in Needham, Massachusetts, View Boston in Boston,
Massachusetts, and 751 Gateway in South 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, which includes more than $1
billion of mortgage financing. Notable transactions not mentioned
in fourth quarter highlights include:
- On January 4, 2023, BPLP closed on a $1.2 billion unsecured
term loan facility that matures May 16, 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. Subsequently, on May 2, 2023, BPLP entered into four
interest rate swap contracts with notional amounts aggregating $1.2
billion to fix Term SOFR at a weighted-average rate of 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 term loan that was scheduled to mature in May 2023,
resulting in incremental net proceeds of approximately $466.0
million.
- On May 15, 2023, BPLP completed a public offering of $750.0
million aggregate principal amount of 6.500% unsecured senior notes
due 2034. The net proceeds from the offering were approximately
$741.3 million after deducting underwriting discounts and
transaction expenses. BPLP used a portion of the proceeds to repay
$500.0 million in aggregate principal amount of its 3.125% senior
notes due September 1, 2023.
- 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
the U.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 $0.01 and $0.05 per share for First Quarter
2024 and Full Year 2024 respectively.
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 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 53.3 million square feet and 188 properties,
including 10 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, 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 U.S. or global
economy, general risks affecting the real estate industry
(including, without limitation, the inability to enter into or
renew leases on favorable terms, changes in client preferences and
space utilization, dependence on clients’ financial condition, and
competition from other developers, owners and operators of real
estate), the impact of geopolitical conflicts, the immediate and
long-term impact of the outbreak of a highly infectious or
contagious disease, on our and our clients’ financial condition,
results of operations and cash flows (including the impact of
actions taken to contain the outbreak or mitigate its impact, the
direct and indirect economic effects of the outbreak and
containment measures on our clients, and the ability of our clients
to successfully operate their businesses), 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.
Except as otherwise required by law, 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.
Financial tables follow.
BOSTON PROPERTIES,
INC.
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
December 31, 2023
December 31, 2022
(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, $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, 157,019,766 and 156,836,767 issued and
156,940,866 and 156,757,867 outstanding at December 31, 2023 and
December 31, 2022, respectively
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 December
31,
Year ended December
31,
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 December
31,
Year ended December
31,
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
Boston
89.9 %
90.2 %
90.3 %
92.7 %
Los Angeles
85.9 %
88.3 %
88.1 %
88.6 %
New York
90.1 %
86.8 %
92.4 %
90.9 %
San Francisco
84.9 %
88.5 %
85.5 %
88.8 %
Seattle
81.8 %
88.3 %
83.1 %
90.9 %
Washington, DC
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
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