Boston Properties Inc. had another quarter of accomplishments and continue to execute successfully on our revenue and earnings growth strategy. In terms of FFO per share growth this year the REIT continued to outperform every company in its sector and a vast majority of REITs overall.
According to CEO Owen Thomas on the firm’s Q2 earnings call, this past quarter, the company grew FFO per share of 13% over the second quarter of 2018, which was also $0.04 per share above the midpoint of company guidance for the quarter and $0.04 above the street. “Our share of cash same property NOI growth was also very strong at 9% for the quarter.”
He explained that the firm’s growth is well balanced coming from both delivery of new developments and same-property performance. “And in terms of operational highlights we had a busy and productive quarter.”
He said that the REIT completed more than 2.4 million square feet of leasing, which is well above its long-term quarterly average for the period. “We began construction of 225 Main Street in Cambridge for Google Hub on Causeway is starting to come online as Rapid7 moves in and the retail components activate in our podium first phase and we completed Boston Properties’ second green bond offering raising $150 million at attractive terms in the unsecured debt market.”
As for business conditions, he said that leasing activity remains vibrant throughout the vast majority of the company’s portfolio. “In fact, markets, driven by technology and life science demand are experiencing historic highs in rents and leasing activity. Through the lens of reported economic data the US economy also appears healthy with 2.1% GDP growth in the second quarter so that was down from 3.1% in the first quarter, 512,000 jobs were created in the second quarter, there was a 3.7% unemployment rate and inflation is in check at 1.6%.”