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Sep 30, 2021

Boston Properties Q3 2021 Earnings Report

Boston Properties' performance reflected growth in revenue and FFO, driven by strong leasing activity and occupancy rates.

Key Takeaways

Boston Properties reported a net income of $108.3 million, or $0.69 per diluted share. FFO reached $270.5 million, or $1.73 per diluted share. The company's in-service properties maintained a strong occupancy rate of 88.4%.

Net income attributable to Boston Properties, Inc. was $108.3 million, or $0.69 per diluted share.

FFO attributable to Boston Properties, Inc. was $270.5 million, or $1.73 per diluted share.

Revenue reached $730.1 million.

In-service properties maintained an occupancy rate of 88.4%.

Total Revenue
$730M
Previous year: $693M
+5.3%
EPS
$1.73
Previous year: $1.57
+10.2%
Total Square Feet
52.5M
Previous year: 51.2M
+2.5%
Total Properties
202
Previous year: 196
+3.1%
Gross Profit
$465M
Previous year: $429M
+8.4%
Cash and Equivalents
$1B
Previous year: $1.71B
-41.5%
Total Assets
$22.8B
Previous year: $23B
-0.5%

Boston Properties

Boston Properties

Boston Properties Revenue by Segment

Forward Guidance

The Company’s guidance for the full year 2021 and full year 2022 for diluted earnings per common share attributable to Boston Properties, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. is set forth and reconciled below.

Positive Outlook

  • Average In-service portfolio occupancy for 2021: 88.00% - 89.00%
  • Increase in BXP’s Share of Same Property net operating income (excluding termination income) for 2021: 5.00% - 6.00%
  • Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income) for 2021: 4.00% - 5.00%
  • BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) for 2021: $26,000 - $28,000
  • Development and management services revenue for 2021: $25,000 - $26,000

Challenges Ahead

  • BXP’s Share of incremental net operating income related to asset sales over prior year for 2021: $(15,000) - $(13,000)
  • BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) for 2021: $115,000 - $120,000
  • Termination income for 2021: $12,000 - $13,000
  • General and administrative expense for 2021: $(148,000) - $(147,000)
  • Net interest expense for 2021: $(469,000) - $(466,000)

Revenue & Expenses

Visualization of income flow from segment revenue to net income