Boston Properties Inc. (BXP) swung to a fourth-quarter profit as the office-property owner booked higher rental revenue despite a lower percentage of its portfolio being leased.
The company also forecast funds from operations in the current quarter ranging between $1.12 and $1.14 a share, just touching the average estimate of $1.14 from analysts polled by Thomson Reuters. For the full year, it predicted FFO of $4.65 to $4.78 a share, bracketing the consensus estimate for $4.76.
Office landlords like Boston Properties have generally reported stronger results over the past year as higher occupancy and rental rates boost their bottom lines.
REITs with properties in major cities have been doing particularly well as urban commercial real-estate markets rebound the fastest. Boston Properties' assets are concentrated in Boston, Midtown Manhattan and Washington.
The company's results were still hurt a year ago by heavy debt-extinguishment costs and write-downs.
Boston Properties reported a fourth-quarter profit of $101.6 million, or 69 cents a share, compared with a year-earlier loss of $12.9 million, or 9 cents a share.
FFO--a key gauge of profitability among REITs--rose to $1.21 a share from 64 cents. FFO in the year-earlier quarter included 50 cents of charges.
Revenue rose 15% to $452.8 million, topping analysts' $426 million estimate.
Rental revenue also rose 15%, but its portfolio was 91.3% leased by the end of the year versus 93.2% a year earlier.
Shares closed Tuesday at $104.05 and weren't active after hours.
-By Drew FitzGerald and Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [email protected]