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Dec 31, 2023

Boston Properties Q4 2023 Earnings Report

Boston Properties' financial performance remained robust, driven by strong leasing activity and strategic acquisitions.

Key Takeaways

Boston Properties reported a net income of $119.9 million, or $0.76 per diluted share, and FFO of $286.2 million, or $1.82 per diluted share. The company continued to execute its strategy of focusing on premier workplaces in dynamic gateway markets.

Net income attributable to Boston Properties, Inc. was $119.9 million, or $0.76 per diluted share.

FFO attributable to Boston Properties, Inc. was $286.2 million, or $1.82 per diluted share.

The company acquired its joint venture partner’s 45% ownership interest in Santa Monica Business Park.

Occupancy of in-service properties was 88.4%.

Total Revenue
$829M
Previous year: $790M
+5.0%
EPS
$1.82
Previous year: $1.86
-2.2%
Total Square Feet
53.3M
Previous year: 54.1M
-1.5%
Total Properties
188
Previous year: 194
-3.1%
Gross Profit
$303M
Previous year: $498M
-39.1%
Cash and Equivalents
$1.61B
Previous year: $690M
+133.6%
Total Assets
$26B
Previous year: $24.2B
+7.5%

Boston Properties

Boston Properties

Boston Properties Revenue by Segment

Forward Guidance

BXP's guidance for the first quarter 2024 and full year 2024 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 between 87.20% and 88.60%
  • BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) between $75,000 and $82,000
  • BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) between $110,000 and $125,000
  • Termination income between $5,000 and $8,000
  • Development, management services and other revenue between $25,000 and $28,000

Challenges Ahead

  • Decrease in BXP’s Share of Same Property net operating income (excluding termination income) between (3.00)% and (1.00)%
  • Decrease in BXP’s Share of Same Property net operating income - cash (excluding termination income) between (3.00)% and (1.00)%
  • BXP’s Share of incremental net operating income related to asset sales over prior year between $(6,000) and $(6,000)
  • General and administrative expense between $(163,000) and $(159,000)
  • Consolidated net interest expense between $(590,000) and $(570,000)