10 CityPoint in Waltham
Boston Properties reported funds from operations of $220.6 million for the second quarter, up from $208.7 million the previous year, as it beat its previous guidance and raised its full-year guidance.
The Boston-based REIT reported funds from operations of $1.43 per share diluted, beating its previous guidance of $1.36-$1.38. The company cited improved performance of its 46.5-million-square-foot portfolio and a new investment that marked its entrance into the Los Angeles market. On July 1, it acquired a 49.8 percent interest in Colorado Center, a 1.2-million-square-foot office complex in Santa Monica, California, for $511.1 million. The transaction adds a fifth geographic market for Boston Properties, joining Boston, New York, Washington, D.C. and San Francisco.
In a conference call, CEO Owen Thomas said the recent vote for the United Kingdom to leave the European Union has dampened the company’s interest in London expansion.
“Our view of London is it will continue to be a great world city and an interesting market for real estate development, but given the Brexit vote there are more uncertainties about economic growth and space demands,” Thomas said.
Boston Properties updated its full-year projected earnings to $3.04-$3.11 per share, up from $3-$3.10.
Its Greater Boston portfolio, containing 49 properties with 13.6 million square feet, was 91.3-percent leased as of June 30. In June, it completed development of 10 CityPoint in Waltham, a 230,000-square-foot office and retail complex anchored by shoemaker Wolverine Worldwide. Subsequent leases include data storage provider Infinidat, venture capital firm J.W. Childs and CYS Investments.
