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BOSTON — Boston Properties Inc. said Tuesday its second-quarter funds from operations declined versus a year ago as the office real estate investment trust faced higher expenses and weaker rental revenue.
The company posted funds from operations, or FFO, of $156.9 million, or $1.12 a share, down from $166.7 million, or $1.32 a share, in the same period a year earlier.
FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of strength for real estate investment trusts because it provides a more accurate picture of cash performance.
Boston Properties' FFO for the latest quarter includes 8 cents a share related to non-cash deferred management fees from the termination of a property management and leasing agreement. The prior-year quarter included 10 cents a share related to lease termination income and a non-cash charge of 5 cents a share.
Analysts surveyed by Thomson Reuters, who generally exclude one-time items, were expecting FFO of $1 a share.
The company reported net income of $61.4 million, or 44 cents a share, down from net income of $67.2 million, or 53 cents a share, in the same period a year earlier.
Revenue climbed 1.7 percent to about $396 million from $389.5 million.
Analysts were predicting revenue of $367.2 million.
Rental revenue slipped to $366.6 million from $373.1 million during the quarter.
As of June 30, the company's portfolio consisted of 144 properties, 139 of which were in service with 93 percent of their space being leased.
Boston Properties forecast third-quarter FFO of $1.01 to $1.03 a share. Analysts are expecting FFO of $1.02 a share.
The company forecast full-year FFO of $4.24 to $4.29 a share. Analysts are forecasting $4.12 a share.
Shares in Boston Properties were unchanged in aftermarket trading after falling 12 cents to $81.63 during the regular session.
