Boston Properties, Inc. (NYSE: BXP) stock rose 1.58% though the company posted lower than expected results for the fourth quarter of FY 20. The company’s profit came in at $7.31 million compared to $140.52 million, in last year’s fourth quarter. The net income included a $0.35 per share non-cash impairment charge that was related to the Company’s investment in Dock 72, a 670,000 square-foot Class A office property in Brooklyn, New York in which the Company has a 50% interest. The property is 33% leased. The charge is due to an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value. The Company will recognize lease revenue from tenants in the co-working sector on a cash basis commencing in Q1 2021. The company has reported Funds from Operations (FFO) of $213.1 million, or $1.37 per diluted share, compared to FFO of $289.9 million, or $1.87 per diluted share, for the quarter ended December 31, 2019.
Moreover, during the fourth quarter, the company had completed 1.2 million square feet of new leases and renewals with a weighted-average lease term of approximately eight years, marking the strongest leasing quarter since the beginning of the COVID-19 pandemic in the U.S. The company during the period has collected 99.6% of total rent payments from office tenants in the fourth quarter. Rent collections from all commercial tenants, including base rent from retail tenants, were total of 99.0%.
Meanwhile, during fiscal 2020, the company had signed a joint venture with Alexandria Real Estate Equities to develop, own and operate approximately 1.1 million square feet of existing office and life science lab properties in South San Francisco, California, with the opportunity for approximately 640,000 square feet of additional future development.
BXP in the fourth quarter of FY 20 has reported the adjusted funds from operations per share of $1.37, missing the analysts’ estimates for the adjusted funds from operations per share of $1.60, according to the Zacks Consensus Estimate . The company had reported 12.2 percent fall in the adjusted revenue to $639.36 million in the fourth quarter of FY 20, missing the analysts’ estimates for revenue by 4.21%.
For the first quarter 2021, the company projected EPS to be in the range of $0.53 – $0.57 per diluted share and projected FFO to be in the range of $1.53 – $1.57 per diluted share.