Boston Properties Reported a Respectable Set of Numbers in Q4 Amid a Difficult Office Market

No-moat-rated Boston Properties reported a respectable set of numbers in the fourth quarter amid a difficult office market environment. The firm reported funds from operations, or FFO, of $1.86 per share in the fourth quarter, which was mostly in line with the FactSet consensus FFO estimate of $1.84 per share. The company also updated its 2023 full-year FFO guidance to a range of $7.08 to $7.18 per diluted share, which was $0.09 per share lower than the previous full-year guidance. The midpoint of the updated 2023 FFO full-year guidance is approximately $0.40 per share lower than the 2022 FFO, mainly impacted by higher interest expenses. After incorporating the fourth-quarter results, we are maintaining our fair value estimate of $107 per share for Boston Properties.