Boston Properties Earnings: 2024 FFO Guidance in Line With Our Expectations; Maintain $95 Fair Value

No-moat-rated Boston Properties posted a middling set of fourth-quarter numbers. Funds from operations of $286.2 million, or $1.82 per share, came in around 2.3% lower than the $292.9 million, or $1.86 per share, of the year-ago fourth quarter. The company’s 2024 FFO guidance is in line with our estimates as management expects $7.00-$7.20 per diluted share. The midpoint of the 2024 FFO guidance is 2.5% lower than full-year 2023 FFO primarily because of higher net interest expense of $0.31 per share, lower contributions from same-property portfolio performance of $0.26 per share, and reduced fee and termination income of $0.14 per share. 2024 FFO is expected to be positively affected by an estimated $0.42 per share from acquisitions, disposition activity, and development deliveries. We are maintaining our $95 fair value estimate for Boston Properties after incorporating the fourth-quarter results.