Analyst Note| Yousuf Hafuda |
Boston Properties Group reported fourth-quarter results that missed consensus FactSet consensus estimates, sending shares around 3% lower. The firm has shown some resilience amid the challenges presented by the coronavirus pandemic, but some of these inherent issues remain difficult to overcome. During the fourth quarter, Boston Properties reported funds from operations (FFO) of $1.37 per share, down significantly as compared with $1.87 during the fourth quarter of 2019. Partly contributing to the sharp year-over-year decline was a $0.22 per share non-cash write-off of accrued rent for all coworking tenants given the challenges facing this industry. Meanwhile, full-year 2020 FFO was $6.29 per share, down as compared with $7.01 during 2019. With a period of COVID-19 related weakness already incorporated into our outlook, we are maintaining our $103 per share fair value estimate for no-moat rated Boston Properties Group.