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Boston Properties Inc.’s BXP first-quarter 2025 funds from operations (FFO) per share of $1.64 missed the Zacks Consensus Estimate of $1.65. The reported figure fell 5.2% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, lower occupancy during the quarter marred its year-over-year FFO per share growth. BXP also revised its guidance for 2025 FFO per share.
Quarterly lease revenues were $811.1 million, up 2.9% year over year. The Zacks Consensus Estimate was pegged at $790.9 million. Total revenues increased 3.1% from the prior-year quarter to $865.2 million.
BXP’s First Quarter in Detail
Boston Properties’ rental revenues (excluding termination income) for the office portfolio came in at $799.2 million, which rose 1.5% year over year. For the hotel & residential segment, the metric aggregated $21.9 million, indicating a jump of 5.2% year over year. On a consolidated basis, BXP’s rental revenues (excluding termination income) came in at $821.1 million, up 1.6% year over year.
BXP’s share of the same property net operating income (NOI) on a cash basis (excluding termination income) totaled $460.9 million, which increased 1.8% from the prior-year quarter.
Its share of EBITDAre (on a cash basis), as of March 31, 2025, was $455.6 million, up marginally from $452.5 million as of March 31, 2024.
BXP’s in-service properties occupancy decreased 60 basis points sequentially to 86.9% due to the lease expiration of 350,000 square feet at 200 Fifth Avenue in New York. We estimated the metric to be 87%.
BXP’s Portfolio Activity
During the first quarter, the company executed 91 leases spanning more than 1.1 million square feet, an increment of 25% year over year, with a weighted average lease term of 10.9 years.
In the first quarter of 2025, BXP completed the formation of a joint venture with CrossHarbor Capital and Albanese Organization and its partner to develop a 670-unit, around $455.8 million residential project — ‘290 Coles Street’.
Balance Sheet Position of BXP
Boston Properties exited the first quarter of 2025 with cash and cash equivalents of $398.1 million, down from $1.25 billion as of Dec. 31, 2024.
BXP’s share of net debt to EBITDAre, annualized, was 8.33 as of March 31, 2025, up from 7.65 times as of Dec. 31, 2024.
2025 Guidance Revision by BXP
Boston Properties projects FFO per share for the second quarter of 2025 to be between $1.65 and $1.67.
For 2025, BXP has lowered its guidance for FFO per share, which is now expected in the band of $6.80-$6.92 from the earlier guided range of $6.77-$6.95. The Zacks Consensus Estimate is currently pegged at $6.90, which lies within the guided range.