Boston Properties Q3 Profit Up 54%; Lowers View

DOW JONES NEWSWIRES

Boston Properties Inc.'s (BXP) third-quarter profit jumped 53% as the office-property owner posted better-than-expected results, but the company lowered its full-year guidance and offered a mixed fourth-quarter view.

The real-estate investment trust projected fourth-quarter earnings of 40 cents to 42 cents a share and funds from operations, a key profitability metric among REITs, of $1.04 to $1.06. Analysts polled by Thomson Reuters expected 35 cents and $1.09, respectively.

For the year, the company lowered its earnings target to $1.26 to $1.46 a share and FFO view to $4 to $4.20. In July, the outlook was for earnings of $1.73 to $1.81 and FFO of $4.55 to $4.63.

Boston Properties manages and develops office, hotel and industrial properties in Northeast and Mid-Atlantic states. It had 146 properties with about 49.6 million square feet as of Sept. 30.

The location of the company's assets have somewhat lessened the recession's impact on the REIT. Still, it reported leasing rates were down to 92.1% from 94.5% at the start of the year. Earlier this month, Standard & Poor's Ratings Services noted the company has a high-quality office portfolio and recently enhanced its liquidity position, but its exposure to the financial services industry was a concern.

Boston Properties posted earnings of $65.8 million, or 47 cents a share, up from $43.1 million, or 35 cents a share, a year earlier. FFO rose to $1.13 a share from $1.09. Boston Properties in July projected earnings of 43 cents to 46 cents and FFO of $1.08 to $1.11.

Revenue jumped 5.4% to $377.3 million as base rent rose 9.5%. Analysts expected $353 million.

Shares were inactive in after-hours trading at $60.91. The stock has more than doubled from the more than nine-year low of $29.30 set in March.

(END) Dow Jones Newswires

10-27-09 1730ET