Advertisement
Real estate investment trust BXP, formerly known as Boston Properties, outperformed Wall Street forecasts for its third-quarter revenue, supported by robust leasing momentum as more companies expanded their physical office space. The REIT, which operates across six major U.S. markets including New York and San Francisco, recorded revenue of USD 871.5 million, surpassing analysts' estimates of USD 855.3 million. Following the results, its shares rose 3% in after-hours trading. The stronger demand for office space reflects the gradual shift away from work-from-home policies introduced during the pandemic.
BXP, previously recognised as Boston Properties, reported that its third-quarter performance exceeded market projections, driven by sustained leasing activity and rising demand for office spaces across key U.S. markets. The company's revenue reached USD 871.5 million for the quarter, outperforming the average analyst forecast of USD 855.3 million, as per data compiled by LSEG. Advertisement
The trust operates in six major markets, including New York, San Francisco and Los Angeles, which have witnessed renewed interest in office spaces as corporations continue to scale back remote working policies. Shares of BXP increased by around 3% in after-hours trading following the announcement.
For the quarter that ended in late September, the company reported funds from operations (FFO) - a key benchmark of a real estate investment trust's performance - at USD 1.74 per share, slightly below the USD 1.81 per share recorded during the same period last year. Despite the decline in FFO, BXP posted stronger revenue growth, indicating ongoing resilience in leasing activity across its prime office portfolio.
However, the company registered a net loss per share of 77 cents for the quarter, compared with a profit of 53 cents in the corresponding period last year, reflecting higher expenses and other market factors.
BXP's third-quarter results demonstrated strong operational performance, with leasing demand offsetting margin pressures. The positive revenue growth and increased share value signalled improving sentiment within the U.S. office property market, which continues to stabilise following the pandemic's disruptions. As companies re-establish in-person operations and revise hybrid work structures, REITs like BXP are expected to benefit from sustained leasing activity across major business districts, particularly in high-demand urban centres such as New York, San Francisco, and Los Angeles.
Source - Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
