BXP forecasts second quarter below estimates as higher expenses weigh

BXP

29/04/2025 23:03

April 29 (Reuters) - Real estate investment trust BXP BXP.N on Tuesday forecast a muted second quarter after reporting lower profit for the first quarter, as steady leasing activity was offset by higher expenses.

Shares of the company, which operates in six markets including New York and San Francisco, fell 1.7% in aftermarket trading.

Despite the push for employees to return to the office, the commercial real estate market remains under pressure due to economic uncertainties, which have increased financing costs.

BXP said it expects second-quarter FFO to range between $1.65 and $1.67 per share, below analysts' estimates of $1.69 per share, as per LSEG data.

The company reported FFO, a key measure of a REIT's performance, at $1.64 per share for the quarter ended March 31, down from $1.73 per share last year, impacted by lower earnings from unconsolidated joint ventures in the quarter.
     However, its revenue rose 3.1% to $865.2 million in the quarter, aided by a steady increase in leasing activity.

Net income attributable to common shareholders fell to $61.2 million, or $0.39 per share, compared with $79.9 million, or $0.51 per share, a year earlier.

 (Reporting by Anandita Mehrotra in Bengaluru; Editing by Tasim Zahid)

 ((Anandita.Mehrotra@thomsonreuters.com;))