Boston Properties Earnings: CBD Portfolio Holding Up Well, While Suburban Portfolio Remains Stressed

No-moat-rated Boston Properties reported a decent first quarter, with funds from operations of $271.3 million, or $1.73 per share, flat compared with the $272.0 million, or $1.73 per share, in the first quarter last year. The company updated its 2024 full-year FFO guidance to $6.98-$7.12 per diluted share, a reduction of approximately $0.06 per share at the midpoint. The lower FFO guidance was mainly due to the $0.05 per share impact from noncash fair value interest expenses related to finalizing the market value of the in-place debt and interest-rate swaps for recent acquisitions. We are maintaining our $91 per share fair value estimate for Boston Properties after incorporating the first-quarter results.